As I write this, I am thinking about the entrepreneurs, homeowners, and community organizations whose lives look different today because capital was available to them when they needed it. A loan from Craft3 can be the difference between an opportunity realized and an opportunity denied. The positive outcomes of our mission-driven loans ripple outward: jobs created, families stabilized, communities strengthened. Your investment makes this possible, and I am grateful for it.
2025 was a year of strong results and transition. In November, we welcomed Elisabeth Zeller as Craft3's new CEO. We are thrilled to have her on board and she has truly hit the ground running. If you missed it, you can read more about Elisabeth on our blog.
Our lending continued to reach the people and places that need it most. Craft3 made $43 million in commercial loans, 55 percent of which went to entrepreneurs of color and 39 percent to women-owned businesses, supporting 505 jobs. Our Clean Water loans — $10.9 million in total — helped homeowners finance septic repair and replacement projects. We also received an $80 million New Markets Tax Credit allocation, and we have an exciting pipeline for deploying it; more on that in our Annual Report coming out in June.
This report gives you a snapshot of our lending and a deeper dive into financial and portfolio performance. Our full Annual Report will go deeper, with more on customer stories, our New Markets Tax Credit program, BuildUp Oregon, and our Clean Water lending and advocacy work. I am excited to share it with you in June.
In the meantime, please don't hesitate to reach out if you have questions or would like to set up a call. On behalf of everyone at Craft3, thank you for your support of this work. By investing in Craft3, you are helping level the playing field by expanding access to capital.
In 2025, Craft3 originated 414 loans totaling $53.9 million.
In 2025, Craft3 made $10.9 million in loans to homeowners. Here’s where those dollars went:
In 2025, Craft3 made $43 million in commercial loans. Here’s where those dollars went:
Outcomes
505
jobs created and retained
$69.2 million
third-party investments leveraged
48,042
low-income households assisted
59,113
community facility service slots supported
45.6 million
gallons of wastewater treated
$240 million
in locally-owned assets strengthened
Customer Stories: Making a Difference
Craft3 makes loans from $50,000 to $5,000,000 and up, serving borrowers as different as the communities to which they belong. Many of our smaller loans in 2025 helped entrepreneurs purchase businesses or equipment — often the fastest path to ownership and a powerful driver of local jobs, services, and wealth. You can read two of those stories below.
Our larger loans ranged just as widely: Islamic financing helped a mosque acquire a permanent home for a growing immigrant community; a neighborhood organization bridged funding to convert an industrial site into a park serving 600 affordable housing units; a rural water association kept an essential infrastructure upgrade on track; a childcare center expanded from 50 to 80 children; and a community food bank broke ground on a new facility serving thousands of low-income families.
Business Acquisitions
When a local business closes, a community loses more than a storefront — it loses jobs, services, and economic activity that can be hard to replace. This is especially true in rural areas, where options are scarce. Craft3 finances business acquisitions, helping people convert industry experience into ownership and keep essential businesses alive and local.
ORCA STRENGTH CROSSFIT — Seattle, Washington
Andrew Giron and Maria Guzman had spent years coaching CrossFit but couldn't qualify for traditional bank financing when a Seattle gym came up for sale. Craft3 stepped in, financing the purchase of the gym's equipment, lease, and member base. Andrew and Maria rebranded it as Orca Strength CrossFit, where their sliding-scale membership model and emphasis on inclusivity makes fitness accessible to everyone.
"Craft3 helped make a dream possible — one I hadn't even imagined could become reality." —Maria Guzman
Equipment Purchases
The right piece of equipment can transform a business — opening doors to new contracts, new markets, or services that weren't possible before. Craft3 finances equipment purchases across a wide range of industries, from manufacturing to specialty healthcare, with a particular focus on rural businesses where access to capital is limited.
STELLAR MOTION — Mount Vernon, Washington
Haley and Jennaka had spent 20 years combined in veterinary medicine but had no business track record — which made traditional lenders a dead end. Craft3 saw two licensed vet techs with deep expertise, a specific and valuable service, and a clear plan. Before approving the loan, a Craft3 business coach worked with them on projections and cash flow to make sure the business could succeed. The loan funded specialized equipment and construction costs for a companion animal rehab practice built around an underwater treadmill.
"Our underwater treadmill has been essential to our growth — it allows us to help dogs regain mobility and stay active in a way that's gentle on their joints." —Haley and Jennaka
Islamic Financing
MASJID IBRAHIM — Bethany, Oregon
What began as prayer gatherings in living rooms has grown into a Muslim community of 250+ members. When rising construction costs threatened to halt their 16,000 square foot community center, Masjid Ibrahim needed a financing partner who could also meet a faith-based requirement: Islam prohibits charging or paying interest, making conventional loans incompatible. Craft3 and Stearns Bank structured an Islamic financing package — a lease-and-leaseback arrangement that provided the capital without compromising the community's principles. When complete, the facility will house a place of worship, an early care and education center, a commercial kitchen, and gathering spaces serving families across the region.
"Through halal financing, we can provide a proper space for worship, education, and service to our community while maintaining our Islamic principles." —Board Member Sayed Ali
Financial Portfolio and Performance
During 2025, Craft3 grew its balance sheet, achieved positive operating results, and maintained strong asset quality.
Balance Sheet
Total assets were $248 million at the end of 2025, representing a 4.6 percent year-over-year (YOY) growth. Net assets, which comprised 41 percent of total assets at year-end, grew three percent, to $100.9 million. Total loans outstanding increased by 5.7 percent to $181.3 million, largely driven by commercial loan growth of loans over $250,000.
Unrestricted cash and investments were $58.3 million at FYE. Notes Payable grew to $140.1 million, a 5.6 percent increase, to support increased loan production. Craft3’s debt to net assets (leverage) ratio remained flat at 1.59:1 at year-end 2025. Craft3 remains conservatively leveraged and well within management goals and investor covenants for debt to net assets.
Income Statement
We ended 2025 with positive net income of $2.9 million, in line with budgeted expectations.
Revenue totaled $37.9 million in 2025, below budget by 8.3 percent, driven to the greatest extent by lower-than-budgeted loan production and investment income. Interest income decreased by 5.2 percent to $10.4 million in 2025 due to a large $9.42 million lending relationship being placed on non-accrual (see Asset Quality). Net interest margins again held relatively steady at 4.43 percent as the balance of Notes Payable and associated cost of funds remained largely unchanged. Consolidated yields decreased modestly to 6.32 percent in 2025, down from 6.44 percent in 2024. Grants and contributions in 2025 totaled $23.1 million ($9.7 million net of pass-through grants), which was 8.5 percent below budget. This was primarily due to lower than forecasted early care and education loans under our BuildUp Oregon program, reducing the amount of grant funding we could bill under associated contracts.
Expenses decreased by 13.4 percent to $21.9 million (net of $13.5 million in pass-through grants), due to reductions in operating expenses as well as favorable charge-offs and recoveries. We ended the year at $2.2 million under budget.
Craft3’s asset quality remained strong in 2025. Annual net charge-offs were 0.04 percent with a three-year rolling charge-off rate of 0.74 percent. At year-end, our allowance for loan losses was $9.2 million, or 5.1 percent of the consolidated portfolio, in line with our Current Expected Credit Losses (CECL) model. While Craft3’s watch list loans had moderately increased at year-end (8.24 percent vs. 7.87 percent at FYE 2024), problem assets decreased from the prior year by 12.7 percent to $7.25 million, or 3.99 percent of the portfolio, remaining below goal of being less than 8 percent of loans outstanding. Loans over 30 days past due rose from 0.26 percent at FYE 2024 to 0.63 percent at FYE 2025, but remained well within our internal goal of being below 2 percent of loans outstanding. Non-accruals were significantly higher at 6.86 percent (up from 1.47 percent at FYE 2024) due to a large $9.42 million lending relationship with a farm enterprise being placed on non-accrual. This lending relationship consists of two loans that are guaranteed by the USDA under the Business & Industry guarantee program. The shortfall after asset liquidation and USDA guarantee payment is expected to be less than $200,000.
2025 Financial Partners
Thank you to all of our funders for supporting Craft3 and the Pacific Northwest. Your contributions are making positive outcomes for our region and communities.
Institutional Investors and Grantors
Annie E. Casey Foundation
Banc of America Community Development Corporation
Bank of America, N.A.
Banner Bank
Beneficial State Bank
BMO Financial Group
Brighton Jones Charitable Giving Fund
Cathay Bank
City of Astoria, Ore.
City of Portland, Ore.
City of Seattle, Wash.
Coastal Community Bank
Columbia Private Trust
CommonSpirit Health
Energy Trust of Oregon
Erich and Hannah Sachs Foundation
First Federal Savings and Loan
Good to Grow CDFI Investment Fund, LLC
Greater Tacoma Community Foundation
Heritage Bank
HSBC Bank USA, N.A.
ImpactAssets, Inc.
JPMorgan Chase Bank, N.A.
JPMorgan Chase Foundation
KeyBank, N.A.
Kitsap Bank
Kuni Foundation
Laird Norton Family Foundation
Meyer Memorial Trust
Multnomah County, Ore.
Northern Trust
Northwest Area Foundation
Opportunity Finance Network
Oregon Housing and Community Services
Pacific County, Wash.
Pacific Premier Trust
Portland Affordable Housing Preservation Trust
Ronald W. Naito MD Foundation
Satterberg Foundation
Seattle Bank
Seattle Foundation
Sound Community Bank
Starbucks Corporation
State of Oregon Department of Environmental Quality
State of Washington - Department of Commerce and Department of Ecology
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