American Church Mortgage (ACMC) 10-Q 16 May 22 2022 FY Quarterly report Financial data

Cover

Cover	3 Months Ended
	Mar. 31, 2022shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-19
Entity File Number	000-25919
Entity Registrant Name	AMERICAN CHURCH MORTGAGE COMPANY
Entity Central Index Key	0000934543
Entity Tax Identification Number	41-1793975
Entity Incorporation, State or Country Code	MN
Entity Address, Address Line One	10400 Yellow Circle Drive
Entity Address, Address Line Two	Suite 102
Entity Address, City or Town	Minnetonka
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55343
City Area Code	(952)
Local Phone Number	945-9455
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	ACMC
Security Exchange Name	NONE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	1,676,598

Balance Sheet

Balance Sheet - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 996,747	$ 114,798
Accounts receivable	81,155	79,887
Interest receivable	95,349	89,280
Prepaid expenses	1,324	2,317
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss	13,478,975	13,744,525
Bond Portfolio	14,982,126	16,337,978
Real Estate Held for Sale	328,996	328,996
Liabilities
Accounts payable	138	137
Management fee payable	20,528	21,530
Line of credit		300,000
Secured Investor Certificates, Series B	4,766,500	4,766,500
Secured Investor Certificates, Series C	5,734,000	5,977,000
Secured Investor Certificates, Series D	7,738,000	7,797,000
Secured Investor Certificates, Series E	3,738,000	3,738,000
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net	654,703	675,746
Total liabilities	21,342,463	21,924,421
Stockholders’ Equity
Common Stock, Value, Issued	16,766	16,766
Additional paid-in capital	19,111,060	19,111,060
Accumulated deficit	(10,505,617)	(10,354,466)
Total stockholders’ equity	8,622,209	8,773,360
Total liabilities and stockholders' equity	$ 29,964,672	$ 30,697,781

Balance Sheet (Parenthetical)

Balance Sheet (Parenthetical) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Financing Receivable, Allowance for Credit Loss, Current	$ 1,282,573	$ 1,486,434
Deferred Income, Current	143,577	152,717
Accumulated Amortization, Debt Issuance Costs	$ 825,663	$ 804,620
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	30,000,000	30,000,000
Common Stock, Shares, Outstanding	1,676,598	1,676,598

Statement of Operations

Statement of Operations - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Interest and Loan Fee Income	$ 565,665	$ 598,530
Interest Expense	360,694	414,265
Net Interest Income	204,971	184,265
Provision for losses on mortgage loans receivable		7,099
Net Interest Income after Provision for Losses on Mortgage Loans	204,971	177,166
Operating Expenses
Other than temporary impairment on bond portfolio	226,853	52,282
Other operating expenses	129,269	229,473
Net (Loss) Income	$ (151,151)	$ (104,589)
Basic and Diluted (Loss) Income Per Share	$ (0.09)	$ (0.06)
Dividends Declared Per Share		$ 0.01
Weighted Average Number of Shares Outstanding, Diluted	1,676,598	1,676,598

Statement of Shareholder's Equi

Statement of Shareholder's Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2020	$ 16,766	$ 19,111,060	$ (9,042,499)	$ 10,085,327
Net (loss)			(104,589)	(104,589)
Dividends declared			(16,766)	(16,766)
Ending balance, value at Mar. 31, 2021	16,766	19,111,060	(9,163,854)	9,963,972
Beginning balance, value at Dec. 31, 2021	16,766	19,111,060	(10,354,466)	8,773,360
Net (loss)			(151,151)	(151,151)
Dividends declared
Ending balance, value at Mar. 31, 2022	$ 16,766	$ 19,111,060	$ (10,505,617)	$ 8,622,209

Statement of Cash Flows

Statement of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows from Operating Activities
Net (loss)	$ (151,151)	$ (104,589)
Adjustments to reconcile net (loss) to net cash
Net loss on sales and impairment of real estate held for sale		100,000
Provision for losses on mortgage loans receivable	(203,861)	7,099
Other than temporary impairment on bond portfolio	226,853	52,282
Amortization of loan origination discounts	(9,141)	(33,926)
Amortization of deferred offering costs	21,044	23,712
Accounts receivable	(1,268)	3,960
Interest receivable	(6,069)	16,060
Prepaid expenses	993	(10,330)
Accounts payable		(13,862)
Management fee payable	(1,002)	223
Net cash (used for) provided by operating activities	(123,602)	40,629
Cash Flows from Investing Activities
Net decrease in loans	478,551	1,147,372
Investment in bonds
Proceeds from bonds	1,129,000	8,000
Net cash provided by investing activities	1,607,551	1,155,372
Cash Flows from Financing Activities
Redemption of secured investor certificates	(302,000)	(31,000)
Payments for deferred costs
Net change in short term borrowings	$ (300,000)	$ (1,045,000)
Dividends paid		$ (16,766)
Net cash (used for) financing activities	$ (602,000)	$ (1,092,766)
Net Increase in Cash and Cash Equivalents	881,949	103,235
Cash and Cash Equivalents - Beginning of Year.	114,798	87,702
Cash and Cash Equivalents - End of Year.	$ 996,747	$ 190,937

Statement of Cash Flows (Contin

Statement of Cash Flows (Continued) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Supplemental Cash Flow Information
Interest paid	$ 339,651	$ 390,553
Noncash Financing Activities
Renewal of secured investor certificates		$ 61,000

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
1. BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The accompanying unaudited interim financial statements and the notes thereto have been prepared in accordance with generally accepted accounting principals in the United States of America (“GAAP”). In the opinion of management, the accompanying unaudited interim financial statements contain all normal recurring adjustments necessary to present fairly the financial positions, results of operations, changes in equity and cash flows for the periods presented. The accompanying unaudited financial statements and related notes should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on March 29, 2022.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business American Church Mortgage Company, a Minnesota corporation, was incorporated on May 27, 1994. The Company is engaged 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 GAAP. 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 the valuation of 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. Risks and Uncertainties The United States and world economies continue to suffer adverse effects from the COVID-19 virus pandemic (“COVID-19”). The impact of the pandemic to the Company has included and may continue to include disruptions or restrictions on employers and contracted agents’ ability to work, reduced demand for new loans and increased repurchase risk of loan or bond defaults. The future impact of the COVID-19 pandemic on the Company cannot be reasonably estimated at this time. AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022 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 Cash 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. Management believes these financial institutions have strong credit ratings and that the credit risk related to these deposits is minimal. The Company has not experienced any losses in such accounts. Bond Portfolio Bonds that management has the intent to hold to maturity are classified as held to maturity and recorded at amortized cost. Amortization of premiums and accretion of discounts (if any) are recognized in interest income using the interest method over the estimated lives of the securities. Declines in fair value of bonds that are deemed to be other than temporary, if applicable, are reflected in earnings as realized losses. In estimating other-than temporary impairment losses, management considered the length of time and the extent to which fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the interest and the ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sales of securities are recorded on the trade date and determined using the specific-identification method. Allowance for Loan Losses on 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 loan losses on mortgage loans receivable and less deferred loan origination fees. The Company’s loan policy provides an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio with application of reserve percentages to specific loans based on payment status. This policy reserves for principal amounts outstanding on a specific loan if cumulative interruptions occur in the normal payment schedule of the loan, therefore, the Company recognizes a provision for losses and an allowance for the outstanding principal amount of the loan in the Company’s portfolio if the amount is in doubt of AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022 collection. Additionally, no interest income is recognized on impaired loans that are declared to be in default and are in the foreclosure process. 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: 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. The accrual of interest on a loan is discontinued when the loan becomes 90 consecutive days delinquent or whenever management believes the borrower will be unable to make payments as they become due. The interest on these loans is subsequently accounted for on the cash basis or using the cost-recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current or restructured and future payments are reasonably assured. No interest income was recognized on non-accrual loans at March 31, 2022 and December 31, 2021. The Company has an Advisory Agreement with Church Loan Advisors, Inc. (the “Advisor”). 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 will direct the staff to charge-off the uncollectable receivables. Loans totaling approximately $ 2,353,000 2,368,000 Real Estate Held for Sale 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, totaled $ 328,996 Gain (Loss) on Real Estate Held For Sale The Company records a gain or loss from real estate held for sale when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances real estate held for sale 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, real estate held for sale is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022 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 There were no dilutive shares for the periods ended March 31, 2022 and December 31, 2021. Recent Accounting Pronouncements In 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 expected credit losses on financial instruments and other commitments to extend credit. For public entities, deemed small reporting companies, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, 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. Income Taxes The Company elected to be taxed as a Real Estate Investment Trust (REIT). Accordingly, the Company is not subject to Federal income tax to the extent of distributions to its shareholders if the Company meets all the requirements under the REIT provisions of the Internal Revenue Code. The Company evaluated its recognition of income tax benefits using a two-step approach to recognizing and measuring tax benefits when realization of the benefits is uncertain. The first step is to determine whether the benefit meets the more-likely-than-not condition for recognition and the second step is to determine the amount to be recognized based on the cumulative probability that exceeds 50%. Primarily due to the Company’s tax status as a REIT, the Company does not have any significant tax uncertainties that would require recognition or disclosure. Subsequent Events The Company has evaluated events and transactions through May 16, 2022, the date the financial statements were available to be issued. AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022

3. FAIR VALUE MEASUREMENT

3. FAIR VALUE MEASUREMENT	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
3. FAIR VALUE MEASUREMENT	3. FAIR VALUE MEASUREMENT Some assets and liabilities are measured at fair value on a recurring basis under GAAP. The Company has no such assets or liabilities that are measured at fair value on a recurring basis. Other assets and liabilities may be measured at fair value on a nonrecurring basis. Below is a description of the valuation methodology and significant inputs used for each asset and liability measured at fair value on a nonrecurring basis, as well as the classification of the asset or liability within the fair value hierarchy. Bonds held to maturity Securities held to maturity are not measured at fair value on a recurring basis. However, securities deemed other-than-temporarily impaired are measured at fair value. The fair value measurement of such securities is based on various assumptions market participants would use to value the securities, such as current interest rates, estimated credit and liquidity spreads, conditional default and loss severity rates, and available credit support. Since some of these assumptions are unobservable in the current market environment, the fair value measurement of other-than-temporarily impaired securities held to maturity is considered a Level 3 measurement. Loans Loans are not measured at fair value on a recurring basis. However, loans considered to be impaired may be measured at fair value on a nonrecurring basis. The fair value measurement of an impaired loan that is collateral dependent is based on the fair value of the underlying collateral. Independent appraisals are obtained that utilize one or more valuation methodologies - typically they will incorporate a comparable sales approach and an income approach. Management routinely evaluates the fair value measurements of independent appraisers and adjusts those valuations based on differences noted between actual selling prices of collateral and the most recent appraised value. Such adjustments are usually significant, which results in a Level 3 classification. All other impaired loan measurements are based on the present value of expected future cash flows discounted at the applicable effective interest rate. Real estate held for sale Real estate and other property acquired through or in lieu of loan foreclosure are not measured at fair value on a recurring basis. However, foreclosed assets are initially measured at fair value (less estimated costs to sell) when they are acquired and may also be measured at fair value (less estimated costs to sell) if they become subsequently impaired. The fair value measurement for each asset may be obtained from an independent appraiser or prepared internally. Fair value measurements obtained from independent appraisers generally utilize a market approach based on sales of comparable assets and/or an income approach. Such measurements are usually considered Level 2 measurements. However, management routinely evaluates fair value measurements of independent appraisers by comparing actual selling prices to the most recent appraisals. If management determines significant adjustments should be made to the independent appraisals based on these evaluations, these measurements are considered Level 3 AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022 measurements. Fair value measurements prepared internally are based on management's comparisons to sales of comparable assets, but include significant unobservable data and are therefore considered Level 3 measurements. Information regarding the F air Value of Assets and Liabilities measured at fair value Nonrecurring Fair Value at March 31, 2022 Assets: Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Bond portfolio $ — $ — $ 6,982,357 $ 6,982,357 Impaired loans $ — $ — $ 4,296,093 $ 4,296,093 Real estate held for sale $ — $ — $ 328,996 $ 328,996 Nonrecurring Fair Value at December 31, 2021 Assets: Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Bond portfolio $ — $ — $ 7,142,094 $ 7,142,094 Impaired loans $ — $ — $ 4,496,970 $ 4,496,970 Real estate held for sale $ — $ — $ 328,996 $ 328,996 As of March 31, 2022, bonds held to maturity with a carrying value of $ 8,897,598 6,915,241 1,982,357 8,897,598 7,142,094 1,755,094 As of March 31, 2022, loans with a carrying amount of $ 5,578,666 4,296,093 1,282,573 5,983,404 4,496,970 1,486,434 AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022 Real estate held for sale is recognized at fair value, less costs to sell. Impairment charges of $0 and $100,000 were recognized in earnings for the periods ended March 31, 2022 and December 31, 2021, respectively. The following presents quantitative information about nonrecurring Level 3 fair value measurements Fair Value Valuation Technique Significant Unobservable Inputs(s) Range/Weighted March 31, 2022 Bond Portfolio $6,982,357 Market or Income Approach Discount to Appraised Values 10-50% Impaired Loans $4,296,093 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $328,996 Market or Income Approach Discount to Appraised Values 10-20% December 31, 2021 Bond Portfolio $7,142,094 Market or Income Approach Discount to Appraised Values 10-20% Impaired Loans $4,496,970 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $328,996 Market or Income Approach Discount to Appraised Values 10-20% The estimated fair values and carrying values of the Company’s financial instruments March 31, 2022 Level 1 Level 2 Level 3 Carrying Value at March 31, 2022 Cash and equivalents $ 996,747 $ — $ — $ 114,798 Accounts receivable 81,155 — — 79,887 Interest receivable 95,349 — — 89,280 Mortgage loans receivable — — 13,478,975 13,478,975 Bond portfolio — — 14,982,126 14,982,126 Line of credit — — — — Secured investor certificates — 21,976,500 — 21,976,500 December 31, 2021 Level 1 Level 2 Level 3 Carrying Value Cash and equivalents $ 114,798 $ — $ — $ 114,798 Accounts receivable 79,887 — — 79,887 Interest receivable 89,280 — — 89,280 Mortgage loans receivable — — 13,744,525 13,744,525 Bond portfolio — — 16,337,978 16,337,978 Line of credit 300,000 — — 300,000 Secured investor certificates — 22,278,500 — 22,278,500 AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022 Limitations The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing balance-sheet financial instruments without attempting to estimate the value of anticipated future business.

4. MORTGAGE LOANS RECEIVABLE

4. MORTGAGE LOANS RECEIVABLE	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
4. MORTGAGE LOANS RECEIVABLE	4. MORTGAGE LOANS RECEIVABLE At March 31, 2022, the Company had mortgage loans receivable totaling $ 14,905,125 17,151,407 At March 31, 2022, the Company reserved $ 1,282,573 5,579,000 1,501,095 6,445,000 AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022 A summary of transactions in the allowance for mortgage loans Three Months Ended Balance at December 31, 2021 $ 1,486,434 Charge-offs (203,861) Balance at March 31, 2022 $ 1,282,573 Three Months Ended Balance at December 31, 2020 $ 1,493,996 Provisions for loan losses 7,099 Balance at March 31, 2021 $ 1,501,095 One loan was in the foreclosure process, had a principal balance of $ 543,822 0 543,822 Loans that are in the foreclosure process or are declared to be in default, had a principal balance of $ 921,583 173,900 747,683 The outbreak of COVID-19 has affected churches due to shelter-in-place directives which ceased or greatly curtailed social gatherings such as church worship services. The Company’s borrowers have experienced financial duress during the COVID-19 shelter in place restrictions, amplified by the financial setbacks for many of the church members who have lost their jobs, been furloughed, or had their incomes diminished. The Company provided some temporary relief by allowing its borrowers to either make interest only payments for a period of ninety days or forgo one monthly mortgage payment (forbearance). In 2020, the Company provided nine churches totaling approximately $ 2,552,000 2,119,000 217,000 AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022 estimated at this time. The contractual maturity schedule for mortgage loans receivable Mortgage Loans 2022 $ 738,852 2023 607,505 2024 1,595,826 2025 1,107,088 2026 1,034,196 Thereafter 9,821,658 14,905,125 Less loan loss allowance (1,282,573) Less deferred origination fees (143,577 Totals $ 13,478,975 The Company did not restructure any loans during the three month period ended March 31, 2022. A summary of loans restructured or modified Restructured and Modified Loans March 31, 2022 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 5 $3,761,544 7.968% $3,022,264 6.441% December 31, 2021 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 6 $4,196,544 8.101% $3,415,692 6.431% AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022

5. BOND PORTFOLIO

5. BOND PORTFOLIO	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
5. BOND PORTFOLIO	5. BOND PORTFOLIO The Company has a portfolio of secured church bonds at March 31, 2022 and December 31, 2021, which are carried at amortized cost. The bonds pay either semi-annual or quarterly interest ranging from 3.50% to 9.75%. The aggregate par value of secured church bonds equaled $ 16,964,483 18,093,483 1,982,357 1,755,504 1,129,000 842,000 The contractual maturity schedule for the bond portfolio Bond Portfolio 2022 $ 90,000 2023 98,000 2024 426,000 2025 215,000 2026 494,000 Thereafter 15,561,483 16,964,483 Less other than temporary impairment on bond portfolio (1,982,357 Totals $ 14,982,126 Total other than temporary impairment related to the bond portfolio was $ 1,982,357 1,755,504 6,915,241 7,142,094 Below is a rollforward of the amount of other than temporary impairment related to credit loss that has been recognized in earnings during the periods ended March 31, 2022 and December 31, 2021: Temporary Impairment Losses March 31, 2022 December 31, 2021 Beginning Balance $ 1,755,504 $ 834,226 Credit loss realized from redemption of securities — (18,743 ) Additions to other than temporary impairment 226,853 940,021 Ending Balance $ 1,982,357 $ 1,755,504 AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022

6. SECURED INVESTOR CERTIFICATE

6. SECURED INVESTOR CERTIFICATES	3 Months Ended
	Mar. 31, 2022
Secured Investor Certificates
6. SECURED INVESTOR CERTIFICATES	6. SECURED INVESTOR CERTIFICATES Secured investor certificates are collateralized by certain mortgage loans receivable or secured church bonds of approximately the same value as the certificates. The weighted average interest rate on the certificates was 6.15% and 6.12% at March 31, 2022 and December 31, 2021, 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 $ 0 530,000 The contractual maturity schedule for the secured investor certificates 2022 $ 740,000 2023 3,404,000 2024 1,433,000 2025 1,202,000 2026 747,000 Thereafter 14,450,500 $21,976,500 Less deferred offering costs 654,703 Totals $ 21,321,797 The Company’s current certificate offering terminated November 6, 2020. As a result, no new secured investor certificates are being offered and instead the Company is financing loans and liquidity needs through loan and bond payments received.

7. TRANSACTIONS WITH AFFILIATES

7. TRANSACTIONS WITH AFFILIATES	3 Months Ended
	Mar. 31, 2022
Related Party Transactions [Abstract]
7. TRANSACTIONS WITH AFFILIATES	7. 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 management. For its services, the Advisor is entitled to receive a management fee equal to 1.25% annually of the Company's Average Invested Assets, plus one-half of any origination fee charged to borrowers on mortgage loans made by the Company. A majority of the independent board members approve the Advisory Agreement on an annual basis. The Company paid the Advisor management and origination fees of approximately $70,000 and $268,000 for the periods ended March 31, 2022 and December 31, 2021, respectively. In addition, the Company paid to the Advisor rent totaling $7,500 for the period ended March 31, 2022. The rent is on a month-to month basis. AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022

8. LINE OF CREDIT

8. LINE OF CREDIT	3 Months Ended
	Mar. 31, 2022
Line Of Credit
8. LINE OF CREDIT	8. 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

1. BASIS OF PRESENTATION (Polic

1. BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
The accompanying unaudited interim financial statements and the notes thereto have been prepared in accordance with generally accepted accounting principals in the United States of America (“GAAP”). In the opinion of management, the accompanying unaudited interim financial statements contain all normal recurring adjustments necessary to present fairly the financial positions, results of operations, changes in equity and cash flows for the periods presented.	The accompanying unaudited interim financial statements and the notes thereto have been prepared in accordance with generally accepted accounting principals in the United States of America (“GAAP”). In the opinion of management, the accompanying unaudited interim financial statements contain all normal recurring adjustments necessary to present fairly the financial positions, results of operations, changes in equity and cash flows for the periods presented. The accompanying unaudited financial statements and related notes should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on March 29, 2022.

2. SUMMARY OF SIGNIFICANT ACC_2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Accounting Estimates	Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with GAAP. 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 the valuation of 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.
Cash and Cash Equivalents	Cash and Cash 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. Management believes these financial institutions have strong credit ratings and that the credit risk related to these deposits is minimal. The Company has not experienced any losses in such accounts.

3. FAIR VALUE MEASUREMENT (Tabl

3. FAIR VALUE MEASUREMENT (Tables)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
nonrecurring Level 3 fair value measurements	Information regarding the F air Value of Assets and Liabilities measured at fair value Nonrecurring Fair Value at March 31, 2022 Assets: Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Bond portfolio $ — $ — $ 6,982,357 $ 6,982,357 Impaired loans $ — $ — $ 4,296,093 $ 4,296,093 Real estate held for sale $ — $ — $ 328,996 $ 328,996 Nonrecurring Fair Value at December 31, 2021 Assets: Quoted Prices in Active Markets for Identical Instruments Significant Other Observable Inputs Significant Unobservable Inputs Total Bond portfolio $ — $ — $ 7,142,094 $ 7,142,094 Impaired loans $ — $ — $ 4,496,970 $ 4,496,970 Real estate held for sale $ — $ — $ 328,996 $ 328,996 As of March 31, 2022, bonds held to maturity with a carrying value of $ 8,897,598 6,915,241 1,982,357 8,897,598 7,142,094 1,755,094 As of March 31, 2022, loans with a carrying amount of $ 5,578,666 4,296,093 1,282,573 5,983,404 4,496,970 1,486,434 AMERICAN CHURCH MORTGAGE COMPANY Notes to Unaudited Financial Statements March 31, 2022 Real estate held for sale is recognized at fair value, less costs to sell. Impairment charges of $0 and $100,000 were recognized in earnings for the periods ended March 31, 2022 and December 31, 2021, respectively. The following presents quantitative information about nonrecurring Level 3 fair value measurements Fair Value Valuation Technique Significant Unobservable Inputs(s) Range/Weighted March 31, 2022 Bond Portfolio $6,982,357 Market or Income Approach Discount to Appraised Values 10-50% Impaired Loans $4,296,093 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $328,996 Market or Income Approach Discount to Appraised Values 10-20% December 31, 2021 Bond Portfolio $7,142,094 Market or Income Approach Discount to Appraised Values 10-20% Impaired Loans $4,496,970 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $328,996 Market or Income Approach Discount to Appraised Values 10-20%
nonrecurring Level 3 fair value measurements	The following presents quantitative information about nonrecurring Level 3 fair value measurements Fair Value Valuation Technique Significant Unobservable Inputs(s) Range/Weighted March 31, 2022 Bond Portfolio $6,982,357 Market or Income Approach Discount to Appraised Values 10-50% Impaired Loans $4,296,093 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $328,996 Market or Income Approach Discount to Appraised Values 10-20% December 31, 2021 Bond Portfolio $7,142,094 Market or Income Approach Discount to Appraised Values 10-20% Impaired Loans $4,496,970 Market or Income Approach Discount to Appraised Values 10-100% Real Estate Held for Sale $328,996 Market or Income Approach Discount to Appraised Values 10-20%
fair values and carrying values of the Company’s financial instruments	The estimated fair values and carrying values of the Company’s financial instruments March 31, 2022 Level 1 Level 2 Level 3 Carrying Value at March 31, 2022 Cash and equivalents $ 996,747 $ — $ — $ 114,798 Accounts receivable 81,155 — — 79,887 Interest receivable 95,349 — — 89,280 Mortgage loans receivable — — 13,478,975 13,478,975 Bond portfolio — — 14,982,126 14,982,126 Line of credit — — — — Secured investor certificates — 21,976,500 — 21,976,500 December 31, 2021 Level 1 Level 2 Level 3 Carrying Value Cash and equivalents $ 114,798 $ — $ — $ 114,798 Accounts receivable 79,887 — — 79,887 Interest receivable 89,280 — — 89,280 Mortgage loans receivable — — 13,744,525 13,744,525 Bond portfolio — — 16,337,978 16,337,978 Line of credit 300,000 — — 300,000 Secured investor certificates — 22,278,500 — 22,278,500

4. MORTGAGE LOANS RECEIVABLE (T

4. MORTGAGE LOANS RECEIVABLE (Tables)	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
allowance for mortgage loans	A summary of transactions in the allowance for mortgage loans Three Months Ended Balance at December 31, 2021 $ 1,486,434 Charge-offs (203,861) Balance at March 31, 2022 $ 1,282,573 Three Months Ended Balance at December 31, 2020 $ 1,493,996 Provisions for loan losses 7,099 Balance at March 31, 2021 $ 1,501,095
contractual maturity schedule for mortgage loans receivable	estimated at this time. The contractual maturity schedule for mortgage loans receivable Mortgage Loans 2022 $ 738,852 2023 607,505 2024 1,595,826 2025 1,107,088 2026 1,034,196 Thereafter 9,821,658 14,905,125 Less loan loss allowance (1,282,573) Less deferred origination fees (143,577 Totals $ 13,478,975
Restructured and Modified Loans	The Company did not restructure any loans during the three month period ended March 31, 2022. A summary of loans restructured or modified Restructured and Modified Loans March 31, 2022 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 5 $3,761,544 7.968% $3,022,264 6.441% December 31, 2021 Type of Loan Number of Loans Original Principal Balance Original Average Interest Rate Unpaid Principal Balance Modified Average Interest Rate Mortgage Loans 6 $4,196,544 8.101% $3,415,692 6.431%

5. BOND PORTFOLIO (Tables)

5. BOND PORTFOLIO (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
contractual maturity schedule for the bond portfolio	The contractual maturity schedule for the bond portfolio Bond Portfolio 2022 $ 90,000 2023 98,000 2024 426,000 2025 215,000 2026 494,000 Thereafter 15,561,483 16,964,483 Less other than temporary impairment on bond portfolio (1,982,357 Totals $ 14,982,126
Temporary Impairment Losses	Below is a rollforward of the amount of other than temporary impairment related to credit loss that has been recognized in earnings during the periods ended March 31, 2022 and December 31, 2021: Temporary Impairment Losses March 31, 2022 December 31, 2021 Beginning Balance $ 1,755,504 $ 834,226 Credit loss realized from redemption of securities — (18,743 ) Additions to other than temporary impairment 226,853 940,021 Ending Balance $ 1,982,357 $ 1,755,504

6. SECURED INVESTOR CERTIFICA_2

6. SECURED INVESTOR CERTIFICATES (Tables)	3 Months Ended
	Mar. 31, 2022
Secured Investor Certificates
contractual maturity schedule for the secured investor certificates	The contractual maturity schedule for the secured investor certificates 2022 $ 740,000 2023 3,404,000 2024 1,433,000 2025 1,202,000 2026 747,000 Thereafter 14,450,500 $21,976,500 Less deferred offering costs 654,703 Totals $ 21,321,797

nonrecurring Level 3 fair value

nonrecurring Level 3 fair value measurements (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Real Estate Held For Sale	$ 328,996	$ 328,996
Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Bond Portfolio
Impaired Loans
Real Estate Held For Sale
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Bond Portfolio
Impaired Loans
Real Estate Held For Sale
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Bond Portfolio	6,982,357	7,142,094
Impaired Loans	4,296,093	4,496,970
Real Estate Held For Sale	328,996	328,996
Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Bond Portfolio	6,982,357	7,142,094
Impaired Loans	4,296,093	4,496,970
Real Estate Held For Sale	$ 328,996	$ 328,996

2. SUMMARY OF SIGNIFICANT ACC_3

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
[custom:PrincipalBalanceLoans90DaysPastDue-0]	$ 2,353,000	$ 2,368,000
Real Estate, Held-for-Sale	$ 328,996	$ 328,996

fair values and carrying values

fair values and carrying values of the Company’s financial instruments (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Cash and equivalents	$ 996,747	$ 114,798
Accounts receivable	81,155	79,887
Interest receivable	95,349	89,280
Bond portfolio	14,982,126	16,337,978
Line of credit		300,000
Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Cash and equivalents	996,747	114,798
Accounts receivable	81,155	79,887
Interest receivable	95,349	89,280
Mortgage loans receivable
Bond portfolio
Line of credit		300,000
Secured investor certificates
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Cash and equivalents
Accounts receivable
Interest receivable
Mortgage loans receivable
Bond portfolio
Line of credit
Secured investor certificates	21,976,500	22,278,500
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Cash and equivalents
Accounts receivable
Interest receivable
Mortgage loans receivable	13,478,975	13,744,525
Bond portfolio	14,982,126	16,337,978
Line of credit
Secured investor certificates
Fair Value, Inputs, Level 1, Level 2, and Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Cash and equivalents	114,798	114,798
Accounts receivable	79,887	79,887
Interest receivable	89,280	89,280
Mortgage loans receivable	13,478,975	13,744,525
Bond portfolio	14,982,126	16,337,978
Line of credit		300,000
Secured investor certificates	$ 21,976,500	$ 22,278,500

3. FAIR VALUE MEASUREMENT (Deta

3. FAIR VALUE MEASUREMENT (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Accounting Policies [Abstract]
[custom:CarryingValueBondsHeldToMaturity-0]	$ 8,897,598	$ 8,897,598
[custom:BondPortfolio-0]	6,915,241	7,142,094
[custom:ImpairmentReserveBondPortfolio-0]	1,982,357	1,755,094
[custom:CarryingValueImpairedLoans-0]	5,578,666	5,983,404
[custom:FairValueImpairedLoans-0]	4,296,093	4,496,970
Financing Receivable, Allowance for Credit Loss, Current	$ 1,282,573	$ 1,486,434	$ 1,501,095

allowance for mortgage loans (D

allowance for mortgage loans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Allowance For Mortgage Loans Receivable	$ 1,282,573	$ 1,501,095	$ 1,486,434	$ 1,493,996
Charge-Offs	$ (203,861)	$ 7,099

contractual maturity schedule f

contractual maturity schedule for mortgage loans receivable (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Debt Instrument [Line Items]
2022	$ 21,976,500
Less loan loss allowance	(1,282,573)	$ (1,486,434)	$ (1,501,095)
Less deferred origination fees	(143,577)	$ (152,717)
Mortgages [Member]
Debt Instrument [Line Items]
2022	738,852
2023	607,505
2024	1,595,826
2025	1,107,088
2026	1,034,196
Thereafter	9,821,658
Less loan loss allowance	(1,282,573)
Less deferred origination fees	$ (143,577)

Restructured and Modified Loans

Restructured and Modified Loans (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Number of Loans	$ 5	$ 6
Original Principal Balance	$ 3,761,544	$ 4,196,544
Original Average Interest Rate	7.968%	8.101%
Unpaid Principal Balance	$ 3,022,264	$ 3,415,692
Modified Average Interest Rate	6.441%	6.431%

4. MORTGAGE LOANS RECEIVABLE (D

4. MORTGAGE LOANS RECEIVABLE (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Receivables [Abstract]
Mortgage Loans Receivable Gross	$ 14,905,125	$ 17,151,407
Allowance Mortgage Loans Receivable	1,282,573	1,486,434	$ 1,501,095
Principal Balances Mortgage Loans Receivable	5,579,000		$ 6,445,000
[custom:PrincipalBalanceLoansInDefault-0]	543,822	921,583
[custom:FairValueLaonsInDefault-0]	0	173,900
[custom:ValuationAllowacneImpairdLoans-0]	543,822	$ 747,683
[custom:LoansExceeding90DaysPastDue-0]	2,552,000
[custom:LoansInterestOnlyPayments-0]	2,119,000
[custom:PrincipalBalanceLoansPayingInterestOnly-0]	$ 217,000

contractual maturity schedule_2

contractual maturity schedule for the bond portfolio (Details)	Mar. 31, 2022USD ($)
Debt Instrument [Line Items]
2022	$ 21,976,500
Secured Debt [Member]
Debt Instrument [Line Items]
2022	90,000
2023	98,000
2024	426,000
2025	215,000
2026	494,000
Thereafter	15,561,483
	$ 16,964,483

Temporary Impairment Losses (De

Temporary Impairment Losses (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Beginning Balance	$ 1,755,504	$ 834,226
Credit loss realized from redemption of securities		(18,743)
Additions to other than temporary impairment	226,853	940,021
Ending Balance	$ 1,982,357	$ 1,755,504

5. BOND PORTFOLIO (Details Narr

5. BOND PORTFOLIO (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Church Bonds Owned Gross	$ 16,964,483	$ 18,093,483
Bond Reserve Fund	1,982,357	1,755,504
Maturities and Redemption of Bonds	1,129,000	842,000
Bond Portfolio	$ 6,915,241	$ 7,142,094

contractual maturity schedule_3

contractual maturity schedule for the secured investor certificates (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Secured Investor Certificates
2023	$ 3,404,000
2024	1,433,000
2025	1,202,000
2026	747,000
Thereafter	14,450,500
	21,976,500
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net	654,703	$ 675,746
Totals	$ 21,321,797

6. SECURED INVESTOR CERTIFICA_3

6. SECURED INVESTOR CERTIFICATES (Details Narrative) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Secured Investor Certificates
Renewal Secured Investor Certificates	$ 0	$ 530,000

8. LINE OF CREDIT (Details Narr

8. LINE OF CREDIT (Details Narrative)	Mar. 31, 2022USD ($)
Line Of Credit
Revolving Line of Credit	$ 4,000,000