Sachem Capital(US:SACH) Globenewswire·2026-03-12 20:15Core Viewpoint - Sachem Capital Corp. reported its financial results for the year ended December 31, 2025, highlighting a focus on disciplined capital allocation and balance sheet strength while addressing legacy exposures and positioning for value creation [2][3]. Financial Performance - Net interest income decreased to $11.7 million in 2025 from $20.5 million in 2024, primarily due to lower interest income as loan originations moderated [4]. - The effective interest rate on loans held for investment was 12.0% in 2025, compared to 11.8% in 2024, with an average performing loans balance of $269.3 million in 2025 versus $366.6 million in 2024 [4]. - The net interest margin fell to 3.1% in 2025 from 4.4% in 2024, reflecting both structural and cyclical factors [5]. - Total other income remained stable at $9.9 million in 2025 compared to $9.4 million in 2024, with shifts in composition rather than magnitude [6]. Credit and Operational Metrics - There was a significant reduction in credit-related charges in 2025, with provisioning reflecting loan-specific adjustments rather than broad-based reserve recalibration [7]. - The company issued $100 million in Senior Secured Notes due 2030, extending its weighted average debt maturity profile [7]. - Total operating expenses decreased to $13.1 million in 2025 from $15.7 million in 2024, attributed to lower credit-related charges and improved expense discipline [8]. Net Income and Shareholder Equity - Net income attributable to common shareholders was $1.8 million, or $0.04 per share, compared to a net loss of $43.9 million, or $0.93 per share, in 2024 [9]. - Total assets as of December 31, 2025, were $460 million, down from $492 million in 2024, while total liabilities decreased to $285.1 million from $310.3 million [10]. - Total shareholders' equity was $174.9 million as of December 31, 2025, compared to $181.7 million in 2024 [12]. Book Value and Dividends - Book value per common share decreased to $2.46 as of December 31, 2025, from $2.64 in 2024, primarily due to cash dividends declared and paid totaling $14 million [13]. - The company paid $4.5 million in dividends to Series A Preferred Stockholders and $9.5 million to common shareholders during 2025 [15]. Company Overview - Sachem Capital Corp. operates as a mortgage REIT, specializing in originating, underwriting, funding, servicing, and managing loans secured by first mortgages on real property [20].