Loans Receivable

9 Months Ended

Sep. 30, 2022

At September 30, 2022 and December 31, 2021, loans receivable were as follows:


(In thousands)	September 30, 2022		December 31, 2021
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	88,799	$	89,431
Commercial loans	24,001		25,741
Total	$	112,800	$	115,172

Fair value:
Real estate loans	$	87,523	$	90,793
Commercial loans	24,001		25,741
Total	$	111,524	$	116,534

The real estate loans are secured by commercial and residential real estate primarily located in New York. These loans generally earn interest at fixed or stepped interest rates and have maturities through 2026. 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 none and $0.2 million as of September 30, 2022 and December 31, 2021, respectively.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the nine months ended September 30, 2022 and 2021:


	2022						2021
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	1,362	$	356	$	1,718	$	1,683	$	3,754	$	5,437

Change in expected credit losses	(200)		474		274		(254)		(3,446)		(3,700)
Allowance for expected credit losses, end of period	$	1,162	$	830	$	1,992	$	1,429	$	308	$	1,737

During the nine months ended September 30, 2022, the Company increased the allowance primarily due to an increase in the weighted average life of the loans receivable portfolio. During the nine months ended September 30, 2021, the Company reduced the allowance primarily due to the disposal of certain loans.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the three months ended September 30, 2022 and 2021:


	2022						2021
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	1,228	$	947	$	2,175	$	1,501	$	469	$	1,970

Change in expected credit losses	(66)		(117)		(183)		(72)		(161)		(233)
Allowance for expected credit losses, end of period	$	1,162	$	830	$	1,992	$	1,429	$	308	$	1,737

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.