Loans Receivable Loans Receivable

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Loans Receivable

Loans Receivable

Loans receivable are as follows:

(In thousands)	March 31, 2015			December 31, 2014
Amortized cost:
Real estate loans	$	203,558		$	243,407
Commercial loans	77,211			78,605
Total	$	280,769		$	322,012
Fair value:
Real estate loans	$	206,626		$	245,112
Commercial loans	77,210			80,107
Total	$	283,836		$	325,219
Valuation allowance:
Specific	$	76		$	115
General	2,363			2,371
Total	$	2,439		$	2,486
	For the Three Months
	Ended March 31,
	2015			2014
Increase (decrease) in valuation allowance	$	(47	)	$	463
Loans receivable charged off	—			—

Loans receivable in non-accrual status were $12.9 million and $14.2 million as of March 31, 2015 and December 31, 2014, respectively, primarily resulting from the transfer of such loans to held-for-sale.

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. Loans receivable with a potential for default are further assessed using discounted cash flow analysis and comparable cost and sales methodologies, if appropriate.

The real estate loans are secured by commercial real estate primarily located in Arizona, Illinois, Maryland, New York, North Carolina, Texas and Virginia. 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 generally earn interest on a fixed basis and have varying maturities not exceeding 10 years.

The Company utilizes a risk rating system to assign a risk to each of its real estate loans. The loan rating system takes into consideration 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 Company’s position in the capital structure, and the overall leverage in the capital structure. Based on this rating system, none of the real estate loans were considered to be impaired at March 31, 2015, and accordingly, the Company determined that a specific valuation allowance was not required.