Loans Receivable

6 Months Ended

Jun. 30, 2023

At June 30, 2023 and December 31, 2022, loans receivable were as follows:


(In thousands)	June 30, 2023		December 31, 2022
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	162,899	$	173,616
Commercial loans	18,663		19,386
Total	$	181,562	$	193,002

Fair value:
Real estate loans	$	158,946	$	168,595
Commercial loans	18,663		19,386
Total	$	177,609	$	187,981

The real estate loans are secured by commercial and residential real estate primarily located in London and 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 as of both June 30, 2023 and December 31, 2022, respectively.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the six months ended June 30, 2023 and 2022:


	2023						2022
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	1,100	$	691	$	1,791	$	1,362	$	356	$	1,718

Change in expected credit losses	2,558		201		2,759		(134)		591		457
Allowance for expected credit losses, end of period	$	3,658	$	892	$	4,550	$	1,228	$	947	$	2,175

During the six months ended June 30, 2023, the Company increased the allowance for expected credit losses due to changes in economic assumptions utilized in its credit loss model. During the six months ended June 30, 2022, the Company increased the allowance primarily due to an increase in the weighted average life of the loans receivable portfolio.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the three months ended June 30, 2023 and 2022:


	2023						2022
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	1,039	$	570	$	1,609	$	1,295	$	134	$	1,429

Change in expected credit losses	2,619		322		2,941		(67)		813		746
Allowance for expected credit losses, end of period	$	3,658	$	892	$	4,550	$	1,228	$	947	$	2,175

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.