Loans Receivable

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Loans Receivable

Loans Receivable

Loans receivable are as follows:

(In thousands)	September 30, 2017			December 31, 2016
Amortized cost (net of valuation allowance):
Real estate loans	$	59,487		$	92,415
Commercial loans	14,742			14,383
Total	$	74,229		$	106,798
Fair value:
Real estate loans	$	60,372		$	92,415
Commercial loans	16,243			15,884
Total	$	76,615		$	108,299
Valuation allowance:
Specific	$	1,200		$	1,200
General	2,183			2,197
Total	$	3,383		$	3,397
	For the Three Months Ended September 30,
	2017			2016
Increase in valuation allowance	$	—		$	467
	For the Nine Months Ended September 30,
	2017			2016
(Decrease) increase in valuation allowance	$	(14	)	$	1,128

Loans receivable in non-accrual status were $4.5 million and $5.4 million as of September 30, 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 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 September 30, 2017, and accordingly, the Company determined that a specific valuation allowance was not required.