PFG Fund V (Pine Financial Group): 11 Delinquent Loans, $7.5M, at June 30, 2026 Versus 5 and $3.8M in December

What PFG Fund V is

PFG Fund V, LLC is a Colorado limited liability company formed on August 26, 2020 “for the purpose of engaging in the business of providing short-term secured real estate lending in Colorado and Minnesota.” It lends to investors who renovate or build, usually on interest-only loans with a balloon payment, at fixed rates from 10.00% to 13.40%. It has no employees; its manager, Pine Financial Group, Inc., runs it and is entitled to all of the company's profits, which the filing defines as revenue minus all expenses including interest to noteholders. Pine Financial also manages sister funds, and Fund V trades loans with them.

It raises money from the public by selling unsecured, non-convertible, fixed-rate promissory notes under Tier 2 of Regulation A: up to $75,000,000, a $10,000 minimum, 8% a year paid monthly. The SEC qualified the first offering statement on June 3, 2021 and a new offering circular dated December 30, 2024 is the one on file. Regulation A is an exemption from registration; the SEC does not approve the notes or vouch for the loans. Notes are not listed and not transferable without the company's consent.

How a noteholder gets out: a holder can ask to be repaid on 90 days' written notice. The 1-SA says redemption is “subject to availability of cash on hand”, and the offering circular says the company “reserves the right to reject such Repayment Demands, subject to cash availability and business operations.” At June 30, 2026 and December 31, 2025 the company reported no redemption requests outstanding. The term is also described inconsistently across documents: the 2026 filings say 60 months with automatic 60-month renewals, while the 2024 circular calls them demand notes with no set maturity.

Delinquent loans over time

Two readings are fair. The first is that the trend is up: the count has risen from 0 in 2023 to 11, and the June 2026 principal is the highest of the series. The second is that the series is lumpy. The September 2025 report shows that “shortly after June 30, 2025, two loans, totaling $4,454,000 became Real Estate Owned, two loans totaling $1,531,000 paid off and one loan, totaling $2,350,000 was extended,” so the late-2025 drop to five was foreclosures and payoffs, not a recovery in the book. Delinquent loans are counted at principal; the filings do not give accrued interest, default interest or the appraised value of the collateral for any single loan.

By our arithmetic the June 2026 delinquent principal is 10.75% of the $69,903,683 loan book, against 5.03% at December 31, 2025, and 16.5% of the investor notes. The delinquency table puts all $7,513,497 in the “over 120 days” column, and the company's policy is to stop accruing interest at 60 days of default. It reversed $206,287.70 of accrued interest in the half and received $123,988.04 of interest in cash on these loans.

Foreclosed property and what it is carried at

The accounting policy matters here. The 1-SA says the fair value of foreclosed property is set in one of several ways, including the foreclosure auction price, “the outstanding principal balance at the time of foreclosure” or an appraisal, and then states: “The fair market value measurement was the principal balance at the time of foreclosure for each property.” In other words, on June 30, 2026 the foreclosed properties were carried at what the loans were worth on the books, not at a fresh valuation. The company also says the only loan type with a historical loss is Minnesota construction, with a loss rate of 0.65% in the text and 0.765% in the table, applied to $4,553,000 of such loans. That produced an allowance of $29,707 plus a $10,809 qualitative adjustment. We make no claim that the properties are worth less; the filings simply do not tell a reader.

Delinquent loans plus REO were 18.4% of total assets (our arithmetic, $14,592,268 over $79,466,030). Worked example (our arithmetic, illustrative): if the recovery on those two items fell short of book by 5%, the shortfall would be $729,613, which is 52% of member's equity; at 9.5% it would equal all of it. Real recoveries depend on each property, on costs of sale and on the interest and fees the company can collect from borrowers.

How the notes are funded and where they rank

The company says in the offering circular that “The Notes are unsecured obligations of the Company” and that “Any debt incurred by the Company will be senior to the Noteholders and will have priority of payment.” The bank line, up to $40,000,000 from one financial institution, matures on November 5, 2028 and “all of the pledged mortgage loans receivable are collateral for the line of credit.” So the bank is first against the loans, and noteholders are paid from what is left, plus the 8% promise that depends on the borrowers paying. The line carries covenants on interest coverage and net worth that “need to be met by the Company alone or combined with a related party”; the 1-SA says the company was compliant at June 30, 2026 (and the MD&A says the covenants “have not been assessed as part of the financial statements”).

Cash flow in the half (from the cash flow statement): the company issued $35,043,771 of new loans, collected $37,750,325 of payoffs, repaid $6,570,000 of the credit line and $3,792,562 of investor notes, and raised $4,498,388 of new notes. Net notes grew by only $705,825 (1.6%, our arithmetic), against $5,586,667 in the first half of 2025. Cash on June 30 was 3.5% of investor notes (our arithmetic) and unfunded loan commitments were $5,301,102. In the same half the company sold eight loans to two affiliated funds at par for $14,155,208 and bought eleven from them for $8,888,867.50. The filing gives no price other than par and states no reason; related-party loan trades are a normal feature of a family of lending funds and a reader should simply know they exist.

Earnings, and what changed in six months

Income covered interest costs 1.32 times (our arithmetic, $4,256,584 over $3,228,216). The company earned $1,450,213 in fiscal 2025 and $1,803,281 in 2024. Net income is the manager's, not the noteholders': noteholders earn their fixed 8%, so the figure matters to them as a buffer.

The loan book: location, term and size

All 85 loans (93 at December 31, 2025) are first trust deeds. The largest is $5,103,900, 7.30% of principal and 11.24% of investor notes. Loans maturing in 2026 are 67 loans for $58,314,073, and 15 loans for $10,354,360 fall in 2027, and three loans totaling $1,235,250 were already past maturity at June 30, 2026, two of them in foreclosure. The 67 loans due in 2026 will have reached maturity by December 31, 2026, and the company's next report will show how they ended. The highest loan-to-after-repair-value at origination was 90.98%, up from 78.40% in December.

Questions the filing raises

• The unaudited label. The fiscal 2025 statements carry an audit report. The company says it engaged Haynie & Company on February 5, 2026 and decided not to re-engage Cathedral CPAs & Advisors, LLP. The June 30, 2026 statements are marked unaudited, as semiannual Regulation A statements may be.
• A two-step filing. The original 1-SA (September 28, 2026, 0001731122-26-001292) has a section headed “Accountants’ Compilation Report” and no financial statements; the amendment of October 1, 2026 supplies them. We do not read more into the gap than that.
• Which number is right. Eleven or ten loans, 8.17% or 7.47%, and the “12 months” statement are described above. In the same notes, the 1-SA lists related-party notes held by KDA Holdings, LLC at December 31, 2025 as $2,872,771, while the Form 1-K gave $1,472,771.
• Legal. The 1-SA says the company was “not involved in any legal proceedings other than those that would be considered part of the normal course of business,” which includes judicial foreclosures.

What a reader can do with this

• If you hold the notes: pull your quarterly account statement and note the note date, because the filings describe both 60-month and demand terms. A redemption needs 90 days' written notice and is subject to cash, so a request now is a decision about timing. The company reported none outstanding on June 30, 2026.
• Compare the cushion with the exposure. Put the $2,117,109 gap between assets net of the credit line and investor notes beside the $14,592,268 of delinquent loans and foreclosed property. Both are our arithmetic from reported figures.
• Read the next report. The Form 1-K for 2026 is due by April 30, 2027; the filings around it will show how the 67 loans due in 2026 finished and whether REO was sold at book.
• Compare with other note issuers. The same structure, unsecured notes behind a lender, shows up across Regulation A issuers: see our reads of Reg A real estate offerings, real estate notes (which covers this issuer's December 2025 figures), real estate bonds and Bequest Bonds I. For the borrower side of the same loans, see hard money lenders in Colorado and how hard money extensions and default interest work.
• Get a second opinion on your position. Whether to hold, ask for redemption or wait has tax and concentration effects that depend on your portfolio.

FAQ

Sources: PFG Fund V, LLC (CIK 0001837189) Form 1-SA/A, accession 0001731122-26-001308, October 1, 2026; Form 1-SA, 0001731122-26-001292, September 28, 2026; Form 1-K, 0001731122-26-000637, April 30, 2026; Form 1-SA, 0001731122-25-001293, September 24, 2025; offering circular on Form 1-A/A, 0001731122-24-002066, December 30, 2024. Percentages, ratios, sums and the write-down illustration are our arithmetic. Statements for June 30, 2026 are unaudited. This is analysis of public documents, not investment, legal or tax advice.