Standard Premium Finance Holdings, Inc.
Draft Public Filing Package — generated by Lattice — For Expert Review Only
Reporting period: Year ended December 31, 2025 Generated as of: 2026-09-05 Basis: computed from the demo ledger (amortized cost, Rule-of-78 [S1], CECL/ASC 326 [S9]).
⚠️ DRAFT — NOT FOR DISTRIBUTION. Figures are generated for review convenience. All legal language, state-specific disclosures, and accounting conclusions remain subject to counsel and auditor sign-off before filing.
1. Financial Highlights
| Metric | Amount |
|---|---|
| Finance receivables, gross | $181,206.19 |
| Unearned finance charge | ($13,452.60) |
| Finance receivables, amortized cost | $167,753.59 |
| Allowance for credit losses | ($721.18) |
| Finance receivables, net | $167,032.41 |
| Weighted-average APR | 16.39% |
| Weighted-average remaining term | 5.9 months |
| Active loans | 6 |
2. Note — Finance Receivables
Finance receivables consist of premium-finance loans secured by the unearned premium on the underlying insurance policies [S4]. Interest is recognized using the Rule of 78 method [S1].
| Policy type | Loans | Amortized cost | Allowance |
|---|---|---|---|
| Commercial Auto | 2 | $87,969.67 | $252.11 |
| Commercial Property | 1 | $53,620.16 | $154.43 |
| General Liability | 2 | $16,457.39 | $165.84 |
| BOP | 1 | $9,706.37 | $148.80 |
| Total | 6 | $167,753.59 | $721.18 |
3. Note — Allowance for Credit Losses (CECL / ASC 326)
The allowance is estimated using expected-loss inputs (PD × EAD × LGD) produced by the company's underwriting engine, consistent with the ARCSys ACL process [S9]. Roll-forward:
| Item | Amount |
|---|---|
| Beginning balance | $721.18 |
| Provision for credit losses | $0.00 |
| Net charge-offs | ($0.00) |
| Ending balance | $721.18 |
Coverage of amortized cost: 0.43%.
Draft note: beginning balance, provision, and charge-offs are seeded from the demo ledger and must be replaced with actual general-ledger figures.
4. Note — Past-Due Finance Receivables
| Aging bucket | Loans |
|---|---|
| Current | 6 |
| 1–29 days past due | 0 |
| 30–59 days past due | 0 |
| 60–89 days past due | 0 |
| 90+ days past due | 0 |
Draft note: non-accrual policy and write-off thresholds pending credit-policy confirmation.
5. Note — Finance Charge (Interest) Income
Finance charges are recognized as income using the Rule of 78 method, the industry standard among premium finance loans [S1].
| Metric | Value |
|---|---|
| Weighted-average APR on the portfolio | 16.39% |
| Unearned finance charge (unamortized discount) | $13,452.60 |
Projected interest income over the next 12 months is presented in the MD&A credit-quality section below.
6. Note — Fair Value of Finance Receivables
Fair value is estimated as the present value of remaining expected cash flows discounted at the portfolio yield. Finance receivables are Level 3 measurements.
| Metric | Amount |
|---|---|
| Discount rate (annual) | 16.65% |
| Amortized cost | $167,753.59 |
| Fair value | $172,839.85 |
| Unrealized gain / (loss) | $5,086.26 |
7. Note — Portfolio Composition & Concentration
| Policy type | Loans | Amortized cost | % of portfolio |
|---|---|---|---|
| Commercial Auto | 2 | $87,969.67 | 52.44% |
| Commercial Property | 1 | $53,620.16 | 31.96% |
| General Liability | 2 | $16,457.39 | 9.81% |
| BOP | 1 | $9,706.37 | 5.79% |
8. MD&A — Portfolio Overview
The portfolio consists of 6 active commercial P&C premium finance loans with a net carrying value of $167,032.41. Weighted-average APR is 16.39% with a weighted-average remaining term of 5.9 months — consistent with 9–11 month terms [S3].
Projected collections over the next 12 months total $181,206.19, including $13,452.61 of interest income.
9. MD&A — Credit Quality
Credit quality is monitored through the allowance for credit losses (ASC 326), delinquency aging, and expected-loss estimates from the underwriting engine.
| Metric | Value |
|---|---|
| Allowance for credit losses | $721.18 |
| Coverage of amortized cost | 0.43% |
| 30+ days past due | 0 loans |
The unearned premium on underlying policies serves as collateral and is designed to fully repay the balance on default [S4], which materially limits loss severity.
10. MD&A — Liquidity & Capital Resources
Funding is provided through bank warehouse credit facilities (e.g., the company's credit agreement [S13]). Loans are advanced at an agreed advance rate with the remainder funded by company equity.
| Facility | Lender | Commitment | Outstanding | Availability | Advance rate |
|---|---|---|---|---|---|
| Meridian Capital Partners Fund II LP | Meridian Capital Partners | $40,000,000.00 | $0.00 | $40,000,000.00 | 90.00% |
| BlueRidge Re Capital LP | BlueRidge Re | $25,000,000.00 | $0.00 | $25,000,000.00 | 80.00% |
| Cottonwood Credit Opportunities LP | Cottonwood Credit | $12,000,000.00 | $0.00 | $12,000,000.00 | 92.00% |
| Revolving Credit Facility — FirstBank N.A. | FirstBank N.A. | $115,000,000.00 | $356,599.22 | $114,643,400.78 | 85.00% |
11. Disclaimer
This document was generated for expert review convenience only and does not
constitute a filing. State-specific disclosures, rate-cap language, and legal
conclusions are placeholders pending counsel review (see docs/adr/0008). All
accounting conclusions (CECL/ASC 326, fair value, income recognition) require
auditor sign-off before inclusion in any SEC filing.