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Loans Receivable Loans Receivable
 3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Loans Receivable
Loans Receivable
Loans receivable are as follows:
(In thousands)
March 31, 2017
 
December 31, 2016
Amortized cost (net of valuation allowance):
 
 
 
  Real estate loans
$
89,206

 
$
92,415

  Commercial loans
14,444

 
14,383

  Total
$
103,650

 
$
106,798

 
 
 
 
Fair value:
 
 
 
  Real estate loans
$
89,206

 
$
92,415

  Commercial loans
15,947

 
15,884

  Total
$
105,153

 
$
108,299

 
 
 
 
Valuation allowance:
 
 
 
  Specific
$
1,200

 
$
1,200

  General
2,183

 
2,197

  Total
$
3,383

 
$
3,397

 
 
 
 
 
For the Three Months Ended March 31,
 
 
2017
 
2016
  Increase (decrease) in valuation allowance
$
(14
)
 
$
568


Loans receivable in non-accrual status were $5.3 million and $5.4 million as of March 31, 2017 and December 31, 2016, respectively.
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 North Carolina and New York. 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 primarily earn interest on a fixed basis and have varying maturities generally not exceeding 10 years.
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. Based on these considerations, none of the real estate loans were considered to be impaired at March 31, 2017, and accordingly, the Company determined that a specific valuation allowance was not required.