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Mortgage Loans on Real Estate (Tables)
 9 Months Ended
Sep. 30, 2013
Mortgage Loans on Real Estate [Abstract]  
Summary of Mortgage Loan Portfolio
Our mortgage loan portfolio, summarized in the following table, totaled $2.6 billion at September 30, 2013 and December 31, 2012, with commitments outstanding of $81.2 million at September 30, 2013.
 
September 30, 2013
 
December 31, 2012
 
(Dollars in thousands)
Principal outstanding
$
2,625,563

 
$
2,658,883

Loan loss allowance
(31,118
)
 
(34,234
)
Deferred prepayment fees
(594
)
 
(709
)
Carrying value
$
2,593,851

 
$
2,623,940
Mortgage Loan Portfolio Summarized by Geographic Region and Property Type
The mortgage loan portfolio is summarized by geographic region and property type as follows:
 
September 30, 2013
 
December 31, 2012
 
Principal Outstanding
 
Percent
 
Principal Outstanding
 
Percent
 
(Dollars in thousands)
Geographic distribution
 
 
 
 
 
 
 
East
$
772,366

 
29.4
%
 
$
732,762

 
27.5
%
Middle Atlantic
149,951

 
5.7
%
 
155,094

 
5.8
%
Mountain
353,820

 
13.5
%
 
387,599

 
14.6
%
New England
22,790

 
0.9
%
 
26,385

 
1.0
%
Pacific
316,822

 
12.1
%
 
320,982

 
12.1
%
South Atlantic
491,221

 
18.7
%
 
458,802

 
17.3
%
West North Central
358,115

 
13.6
%
 
370,168

 
13.9
%
West South Central
160,478

 
6.1
%
 
207,091

 
7.8
%
 
$
2,625,563

 
100.0
%
 
$
2,658,883

 
100.0
%
Property type distribution
 
 
 
 
 
 
 
Office
$
613,050

 
23.4
%
 
$
666,467

 
25.1
%
Medical Office
131,304

 
5.0
%
 
136,764

 
5.1
%
Retail
698,189

 
26.6
%
 
677,951

 
25.5
%
Industrial/Warehouse
664,703

 
25.3
%
 
692,637

 
26.1
%
Hotel
79,385

 
3.0
%
 
94,045

 
3.5
%
Apartment
269,817

 
10.3
%
 
219,335

 
8.2
%
Mixed use/other
169,115

 
6.4
%
 
171,684

 
6.5
%
 
$
2,625,563

 
100.0
%
 
$
2,658,883

 
100.0
%
Rollforward of Specific and General Valuation Allowances for Mortgage Loans on Real Estate
The following tables present a rollforward of our specific and general valuation allowances for mortgage loans on real estate:
 
Three Months Ended
September 30, 2013
 
Three Months Ended
September 30, 2012
 
Specific Allowance
 
General Allowance
 
Specific Allowance
 
General Allowance
 
(Dollars in thousands)
Beginning allowance balance
$
(21,176
)
 
$
(10,500
)
 
$
(25,445
)
 
$
(11,200
)
Charge-offs
3,749

 
—

 
1,932

 
—

Recoveries
—

 
—

 
—

 
—

Provision for credit losses
(2,691
)
 
(500
)
 
(2,909
)
 
(400
)
Ending allowance balance
$
(20,118
)
 
$
(11,000
)
 
$
(26,422
)
 
$
(11,600
)

 
Nine Months Ended
September 30, 2013
 
Nine Months Ended
September 30, 2012
 
Specific Allowance
 
General Allowance
 
Specific Allowance
 
General Allowance
 
(Dollars in thousands)
Beginning allowance balance
$
(23,134
)
 
$
(11,100
)
 
$
(23,664
)
 
$
(9,300
)
Charge-offs
7,930

 
—

 
10,445

 
—

Recoveries
—

 
—

 
—

 
—

Provision for credit losses
(4,914
)
 
100

 
(13,203
)
 
(2,300
)
Ending allowance balance
$
(20,118
)
 
$
(11,000
)
 
$
(26,422
)
 
$
(11,600
)
Impaired Mortgage Loans on Real Estate by Basis of Impairment
The following table presents the total outstanding principal of loans evaluated for impairment by basis of impairment method:
 
September 30, 2013
 
December 31, 2012
 
(Dollars in thousands)
Individually evaluated for impairment
$
50,055

 
$
53,110

Collectively evaluated for impairment
2,575,508

 
2,605,773

Total loans evaluated for impairment
$
2,625,563

 
$
2,658,883
Summary of Activity in Real Estate Owned Which Was Obtained in Satisfaction of Mortgage Loans on Real Estate
The following table summarizes the activity in the real estate owned which was obtained in satisfaction of mortgage loans on real estate:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
 
(Dollars in thousands)
Real estate owned at beginning of period
$
26,609

 
$
38,390

 
$
33,172

 
$
36,821

Real estate acquired in satisfaction of mortgage loans
5,441

 
2,916

 
6,285

 
14,902

Additions
52

 
—

 
532

 
117

Sales
(5,832
)
 
(5,727
)
 
(13,245
)
 
(13,093
)
Impairments
(678
)
 
(830
)
 
(823
)
 
(3,473
)
Depreciation
(159
)
 
(185
)
 
(488
)
 
(710
)
Real estate owned at end of period
$
25,433

 
$
34,564

 
$
25,433

 
$
34,564
Mortgage Loans By Credit Quality Indicator
We analyze credit risk of our mortgage loans by analyzing all available evidence on loans that are delinquent and loans that are in a workout period.
 
September 30, 2013
 
December 31, 2012
 
(Dollars in thousands)
Credit Exposure--By Payment Activity
 
 
 
Performing
$
2,588,791

 
$
2,597,440

In workout
30,724

 
26,723

Collateral dependent
6,048

 
34,720

 
$
2,625,563

 
$
2,658,883
Aging of Financing Receivables
Aging of financing receivables is summarized in the following table, with loans in a "workout" period as of the reporting date considered current if payments are current in accordance with agreed upon terms:
 
30 - 59 Days
 
60 - 89 Days
 
90 Days and Over
 
Total Past Due
 
Current
 
Collateral Dependent Receivables
 
Total Financing Receivables
 
(Dollars in thousands)
Commercial Mortgage Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
$
—

 
$
—

 
$
—

 
$
—

 
$
2,619,515

 
$
6,048

 
$
2,625,563

December 31, 2012
$
—

 
$
—

 
$
—

 
$
—

 
$
2,624,163

 
$
34,720

 
$
2,658,883
Impaired Financing Receivables
Financing receivables summarized in the following table represent all loans that we are either not currently collecting or those we feel it is probable we will not collect all amounts due according to the contractual terms of the loan agreements (all loans that we have worked with the borrower to alleviate short-term cash flow issues, loans delinquent for more than 60 days at the reporting date, loans we have determined to be collateral dependent and loans that we have recorded specific impairments on that we feel may continue to have performance issues).
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment
 
Interest Income Recognized
 
(Dollars in thousands)
September 30, 2013
 
 
 
 
 
 
 
 
 
Mortgage loans with an allowance
$
29,937

 
$
50,055

 
$
(20,118
)
 
$
32,897

 
$
2,082

Mortgage loans with no related allowance
18,782

 
18,782

 
—

 
18,976

 
799

 
$
48,719

 
$
68,837

 
$
(20,118
)
 
$
51,873

 
$
2,881

December 31, 2012
 
 
 
 
 
 
 
 
 
Mortgage loans with an allowance
$
29,976

 
$
53,110

 
$
(23,134
)
 
$
37,480

 
$
1,946

Mortgage loans with no related allowance
27,765

 
27,765

 
—

 
27,696

 
1,664

 
$
57,741

 
$
80,875

 
$
(23,134
)
 
$
65,176

 
$
3,610
Mortgage Loans on Commerical Real Estate Determined to be Troubled Debt Restructurings
Mortgage loan workouts, refinances or restructures that are classified as TDRs are individually evaluated and measured for impairment. A summary of mortgage loans on commercial real estate with outstanding principal at September 30, 2013 and December 31, 2012 that we determined to be TDRs are as follows:
Geographic Region
 
Number of TDRs
 
Principal Balance Outstanding
 
Specific Loan Loss Allowance
 
Net Carrying Amount
 
 
 
 
(Dollars in thousands)
September 30, 2013
 
 
 
 
 
 
 
 
East
 
1
 
$
3,712

 
$
(949
)
 
$
2,763

Mountain
 
7
 
21,514

 
(631
)
 
20,883

South Atlantic
 
6
 
10,792

 
(3,314
)
 
7,478

East North Central
 
1
 
2,219

 
(467
)
 
1,752

West North Central
 
1
 
1,938

 
—

 
1,938

West South Central
 
1
 
1,714

 
(256
)
 
1,458

 
 
17
 
$
41,889

 
$
(5,617
)
 
$
36,272

December 31, 2012
 
 
 
 
 
 
 
 
East
 
1
 
$
4,208

 
$
(1,425
)
 
$
2,783

Mountain
 
10
 
28,786

 
(1,702
)
 
27,084

South Atlantic
 
9
 
23,358

 
(5,047
)
 
18,311

East North Central
 
1
 
2,232

 
(467
)
 
1,765

West North Central
 
3
 
9,466

 
(2,328
)
 
7,138

 
 
24
 
$
68,050

 
$
(10,969
)
 
$
57,081