Dear Friends and Fellow Investors,
Happy New Year and all my best to you & your extended family. SIG had another record year on all fronts, increasing our assets under management 33% to almost $70M, with total originations over $45M, and net income increasing to over $650K. We expect more of the same in the coming year. We continue to receive investor inquiries beyond California, as our investor base has grown to encompass more than 10 states. Our loan growth remains robust and consistent, from both existing clients and new inquiries.
Though our growth continues, we still remain small for the industry in general, with many of our competitors managing several hundred million in private loan portfolios. A few manage over $1 billion. Our smaller size is ultimately healthy, and allows us to cherry-pick only the best new loans, while servicing our existing client base without interruption. For the fifth year in a row, we averaged a less than 1% delinquency rate on our portfolio of over 250 loans.
Throughout the years, many of you have asked for my view of the market and real estate in general. I believe that we are more than halfway through the cycle, but still feel we have several more years of runway left. The economy in CA remains in a slow, under-average growth mode, but moves forward with job creation and record low rates. In conjunction with this expansion, a serious supply shortage has evolved over the last five years for entry-level housing. There simply isn’t enough supply to meet this demand, and I don’t see that abating for quite some time.
Please keep in mind, regardless of the cyclical market, our loan products are designed to prosper during slower times, especially compared to banks and other lending sources. We require at least 35% equity on our loans, almost double or triple mainstream sources. In addition, they are centered around entry level housing product, which has the largest pool of natural buyers and the most aggressive take-out financing.
Our updated financials for 2019 will be ready in the 1st quarter and will be uploaded to our website. In the meantime, I wish you a healthy, prosperous, and productive 2020. Please reach out to Stacey or our customer liaison staff for anything you may need. All my best in the coming year & talk soon.