Note 4 – Financing Receivables

Financing receivables are summarized as follows:


	March 31, 2012			December 31, 2011
	(in thousands)
Loans receivable, net:
Real estate–mortgage
Multi-family residential	$	11,934		$	12,028
Commercial		121,940			130,724
Other		1,396			1,403

		135,270			144,155
Allowance for loan losses		(4,011	)		(4,171	)
Participations sold		(851	)		(861	)
Deferred loan fees, net		23			68

Loans receivable, net		130,431			139,191

Other long-term investments:
Notes receivable—secured		13,835			14,776
Notes receivable—unsecured		3,133			4,207
Loss reserve		(1,676	)		(3,402	)

Notes receivable, net		15,292			15,581

Total financing receivables, net	$	145,723		$	154,772

Aging analysis of loans and notes receivable at March 31, 2012, is as follows:


	Total		Current		30-59 days past due		60-89 days past due		90 days or more past due		Nonaccrual status
	(in thousands)
Loans Receivable:
Multi-family residential	$	11,934	$	11,934	$	—	$	—	$	—	$	—
Commercial		121,940		119,588		—		168		—		2,184
Other		1,396		1,396		—		—		—		—

	$	135,270	$	132,918	$	—	$	168	$	—	$	2,184

Notes Receivable:
Secured	$	13,835	$	13,591	$	—	$	—	$	—	$	244
Unsecured		3,133		2,071		—		—		—		1,062

	$	16,968	$	15,662	$	—	$	—	$	—	$	1,306

Aging analysis of loans and notes receivable at December 31, 2011, is as follows:


	Total		Current		30-59 days past due		60-89 days past due		90 days or more past due		Nonaccrual status
	(in thousands)
Loans Receivable:
Multi-family residential	$	12,028	$	12,028	$	—	$	—	$	—	$	—
Commercial		130,724		123,736		1,918		170		—		4,900
Other		1,403		1,403		—		—		—		—

	$	144,155	$	137,167	$	1,918	$	170	$	—	$	4,900

Notes Receivable:
Secured	$	14,776	$	10,712	$	—	$	—	$	—	$	4,064
Unsecured		4,207		108		—		—		—		4,099

	$	18,983	$	10,820	$	—	$	—	$	—	$	8,163

The Company performs an analysis of its allowance for loan losses on a quarterly basis. In determining the allowance, the Company considers various factors, such as changes in lending policies and procedures, changes in the nature and volume of the portfolio, changes in the trend of the volume and severity of past due and classified loans, changes to the concentration of credit, as well as changes in legal and regulatory requirements. The allowance for loan losses is maintained at a level that is considered appropriate by the Company to provide for known risks in its portfolio.

Loss reserves are established for notes receivable based upon an estimate of probable losses for the individual notes. A loss reserve is established on an individual note when it is deemed probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the note. The loss reserve is based upon the Company's assessment of the borrower's overall financial condition, resources and payment record; and, if appropriate, the realizable value of any collateral. These estimates consider all available evidence including the expected future cash flows, estimated fair value of collateral on secured notes, general economic conditions and trends, and other relevant factors, as appropriate. Notes are placed on non-accrual status when management determines that the collectibility of contractual amounts is not reasonably assured.