Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.23.3
Related Party Transactions
 9 Months Ended
Sep. 30, 2023
Related Party Transactions  
Related Party Transactions

13.   Related Party Transactions

In the ordinary course of business, the Company may originate, fund, manage and service loans to shareholders. The underwriting process on these loans adheres to prevailing Company policy. The terms of such loans, including the interest rate, income, origination fees and other closing costs are the same as those applicable to loans made to unrelated third parties in the portfolio. As of September 30, 2023 and December 31, 2022, loans to known shareholders totaled approximately $28.9 million and approximately $23.5 million, respectively. Interest income earned on these loans for the three months ended September 30, 2023 and 2022 totaled $541,177 and $416,275, respectively, and for the nine months ended September 30, 2023 and 2022 totaled $1,623,530 and $1,248,826, respectively.

The wife of the Company’s chief executive officer was employed by the Company as its director of finance until her retirement from the Company on September 30, 2022. For the three and nine month periods ended September 30, 2022, she was paid $2,115 and $62,865, respectively, as compensation from the Company. In December 2021, the Company hired the daughter of the Company’s chief executive officer to perform certain internal audit and compliance services. For the three months ended September 30, 2023 and 2022, she received compensation of $38,754 and $35,727, respectively. For the nine months ended September 30, 2023 and 2022, she received compensation of $114,754 and $106,327, respectively.