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Loans Receivable

3 Months Ended

Mar. 31, 2023

Note 6. Loans Receivable

Commercial real estate loans receivable, net consist of the following:

	March 31, 2023			December 31, 2022
Commercial real estate loans receivable, gross	$	413,292		$	1,432,560
Less: loan origination charges		(103,476	)		(109,081	)
Commercial real estate loans receivable, net		309,816			1,323,479
Allowance for credit losses		(21,078	)		(21,488	)
Commercial real estate loans receivable, net		288,738			1,301,991
Current portion		(11,728	)		(51,300	)
Noncurrent portion	$	277,010		$	1,250,691

Allowance for Credit Losses

The allowance for credit losses is maintained at a level believed to be sufficient to provide for estimated credit losses based on evaluating known and inherent risks in the loan portfolio. The allowance is provided based upon management’s analysis of the pertinent factors underlying the quality of the loan portfolio. These factors include changes in the amount and composition of the loan portfolio, delinquency levels, actual loss experience, current economic conditions, and detailed analysis of individual loans for which the full collectability may not be assured. The detailed analysis includes methods to estimate the fair value of loan collateral and the existence of potential alternative sources of repayment.

The allowance may consist of specific and general components. While the allowance may consist of general and specific components, the allowance is general in nature and is available for the loan portfolio in its entirety.

The allowance for credit losses consist of the following activity for the three months ended March 31, 2023 and year ended March 31, 2022:

Schedule of Allowance For Loan Losses

	March 31, 2023			March 31, 2022
Allowance for credit losses
Beginning balance	$	21,488		$	14,741
Cumulative effect from adoption of CECL		14,980			-
Charge-offs		-			-
Recoveries		(15,390	)		-
Provision		-			9,805
Ending balance	$	21,078		$	24,546

Loans receivable:
Individually evaluated for impairment	$	-		$	-
Collectively evaluated for impairment		413,292			1,465,482
	$	413,292		$	1,465,482
Allowance for credit losses:
Individually evaluated for impairment	$	-		$	-
Collectively evaluated for impairment		21,078			24,546
	$	21,078		$	24,546

At March 31, 2023 and December 31, 2022, no loans were past due, classified as non-accrual or considered impaired.

Credit quality of loans:

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks credit quality indicators based on the loan payment status on monthly basis. All the loans outstanding on March 31, 2023, are evaluated based on their payment status, which is considered as the most meaningful indicator of credit quality.