Loans Receivable

12 Months Ended

Dec. 31, 2015

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans receivable are as follows:



	As of December 31,
(In thousands)	2015			2014
Amortized cost:
Real estate loans	$	200,499		$	243,407
Commercial loans	72,604			78,605
Total	$	273,103		$	322,012

Fair value:
Real estate loans	$	201,641		$	245,112
Commercial loans	74,106			80,107
Total	$	275,747		$	325,219

Valuation allowance:
Specific	$	—		$	115
General	2,094			2,371
Total	$	2,094		$	2,486

	For the Year Ended December 31,
	2015			2014
(Decrease) increase in valuation allowance	$	(392	)	$	398

Loans receivable in non-accrual status were $3.1 million and $14.2 million as of December 31, 2015 and 2014, respectively, primarily resulting from the sale of such loans.

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, Maryland, New York and Tennessee. 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. These 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 December 31, 2015, and accordingly, the Company determined that a specific valuation allowance was not required.