Company Summary: Ministry Partners Investment Company, LLC

Overview

• Type: Financial services company focused on Christian stewardship
• Founded: 1991
• Location: Brea, California with operations in other states
• Ownership: Organized as a California LLC, owned by 11 credit unions

Primary Business Activities

1. Lending to Churches and Ministries

   • Provides religious mortgage loans primarily secured by real estate (99.9% of loans are real estate secured)
   • Serves evangelical Christian churches, Christian schools, and faith-based organizations
   • Offers acquisition, development, and renovation financing of church-related properties
   • Originates loans internally or acquires loans/loan participations from other financial institutions
   • Owns loan interests in 28 states including the District of Columbia
   • Focuses on niche market with high demand exceeding available sources, competing with banks, credit unions, denominational funds, and other lenders
   • Maintains diversified portfolio, with collateral predominantly real estate

2. Financial Products & Investment Services

   • Operates through its wholly owned subsidiary, Ministry Partners Securities, LLC.
   • Provides investment advisory, insurance, and financial planning solutions for individuals, churches, ministries, and organizations
   • Acts as selling agent for debt certificates (public and private placements)
   • Manages approximately $225.6 million in assets under management as of December 31, 2024
   • Offers retirement planning, estate, tax, and risk management services, emphasizing biblically responsible investing
   • Holds licenses as a broker-dealer (FINRA, SIPC), and a California insurance broker
   • Provides securities brokerage services to credit unions, faith-based organizations, and institutions

3. Loan and Church Financing

   • Provides specialized financing for churches and ministries including mortgage loans secured by real estate
   • Owns and services loans in 28 states, primarily secured by church and ministry real estate
   • Focuses on differentiated niche with less competition and predictable, stable income
   • Manages a portfolio consisting of non-profit commercial loans, construction loans, and unsecured loans
   • Owned or participated in loans to faith-based organizations, with a significant concentration in California, Maryland, Illinois, and the District of Columbia

4. Loan Funding & Capital Management

   • Financed via debt certificates, borrowings from financial institutions, and member equity investments
   • Sells debt securities (Class A debt certificates and private notes) to fund mortgage and other loans
   • Maintains a focus on reducing leverage, increasing capital, while expanding loan origination
   • Has a portfolio of debt certificates totaling approximately $95 million as of December 31, 2024
   • Uses lines of credit to fund operations, including a $5 million revolving line with Kane County Teachers Credit Union (matured in June 2025)

Key Data (as of December 31, 2024)

• Number of Units Issued:

  • Class A Common Units: 146,522 units
  • Series A Preferred Units: 117,100 units
  • Number of investors: 11

• Revenue & Income:

  • Interest income (2024): $6.7 million
  • Total interest income (2024): $7.28 million
  • Net interest income (2024): $2.24 million
  • Non-interest income (2024): $1.26 million
  • Net loss (2024): $607,000

• Employees: Number of employees not specified directly, but management and staff are located in California, Illinois, Tennessee, and Idaho offices.

• Operational Highlights:

  • Income derived mainly from interest on loans, sale of debt securities, and investment advisory fees
  • Emphasizes long-term growth via new loan originations and debt security sales
  • Focuses on Christian organizations, primarily serving faith-based communities
  • Has paid dividends on Series A preferred units but reported a loss in 2024

Regulatory & Market Context

• Operates under regulations from the SEC, FINRA, California Department of Insurance, and the Department of Financial Protection and Innovation
• Subject to various federal and state laws related to credit, securities, and insurance
• Manages cybersecurity and data privacy risks
• Active in the niche religious loan market with specialized, predominantly real estate-collateralized mortgage loans

Note: Actual total revenue and employee counts are not explicitly provided; financial figures focus mainly on loan interest, fees, and net loss for 2024.