Loans Receivable

12 Months Ended

Dec. 31, 2020

At December 31, 2020 and December 31, 2019, loans receivable are as follows:


	As of December 31,
(In thousands)	2020		2019
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	51,910	$	58,541
Commercial loans	33,003		33,258
Total	$	84,913	$	91,799

Fair value:
Real estate loans	$	53,593	$	59,853
Commercial loans	33,003		34,760
Total	$	86,596	$	94,613

The real estate loans are secured by commercial real estate primarily located in New York. These loans generally earn interest at floating LIBOR-based interest rates and have maturities (inclusive of extension options) through August 2025. The commercial loans are with small business owners who have secured the related financing with the assets of the business. Commercial loans primarily earn interest on a fixed basis and have varying maturities generally not exceeding 10 years.

Loans receivable in non-accrual status were $0.2 million as of both December 31, 2020 and 2019.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the year ended December 31, 2020:


	Real Estate Loans		Commercial Loans		Total
(In thousands)
Allowance for expected credit losses at January 1, 2020	$	1,502	$	644	$	2,146
Cumulative effect adjustment resulting from changes in accounting principles	(905)		548		(357)
Provision for expected credit losses	1,086		2,562		3,648
Allowance for expected credit losses at December 31, 2020	$	1,683	$	3,754	$	5,437

The Company monitors the performance of its loans receivable and assesses the ability of the borrower to pay principal and interest based upon loan structure, underlying property values, cash flow and related financial and operating performance of the property and market conditions.

In evaluating the real estate loans, the Company considers their credit quality indicators, including loan to value ratios, which compare the outstanding loan amount to the estimated value of the property, the borrower’s financial condition and performance with respect to loan terms, the position in the capital structure, the overall leverage in the capital structure and other market conditions.