XML 83 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Mortgage Loans on Real Estate (Tables)
 3 Months Ended
Mar. 31, 2014
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 both March 31, 2014 and December 31, 2013, with commitments outstanding of $54.3 million at March 31, 2014.
 
March 31, 2014
 
December 31, 2013
 
(Dollars in thousands)
Principal outstanding
$
2,610,380

 
$
2,607,698

Loan loss allowance
(25,262
)
 
(26,047
)
Deferred prepayment fees
(535
)
 
(569
)
Carrying value
$
2,584,583

 
$
2,581,082
Mortgage Loan Portfolio Summarized by Geographic Region and Property Type
The mortgage loan portfolio is summarized by geographic region and property type as follows:
 
March 31, 2014
 
December 31, 2013
 
Principal
 
Percent
 
Principal
 
Percent
 
(Dollars in thousands)
Geographic distribution
 
 
 
 
 
 
 
East
$
793,717

 
30.4
%
 
$
765,717

 
29.4
%
Middle Atlantic
152,712

 
5.9
%
 
156,489

 
6.0
%
Mountain
343,166

 
13.1
%
 
356,246

 
13.7
%
New England
20,977

 
0.8
%
 
21,324

 
0.8
%
Pacific
313,896

 
12.0
%
 
317,431

 
12.2
%
South Atlantic
488,622

 
18.7
%
 
483,852

 
18.5
%
West North Central
343,660

 
13.2
%
 
351,794

 
13.5
%
West South Central
153,630

 
5.9
%
 
154,845

 
5.9
%
 
$
2,610,380

 
100.0
%
 
$
2,607,698

 
100.0
%
Property type distribution
 
 
 
 
 
 
 
Office
$
557,029

 
21.3
%
 
$
590,414

 
22.6
%
Medical Office
122,807

 
4.7
%
 
125,703

 
4.8
%
Retail
729,056

 
27.9
%
 
711,364

 
27.3
%
Industrial/Warehouse
690,442

 
26.5
%
 
673,449

 
25.8
%
Hotel
47,138

 
1.8
%
 
61,574

 
2.4
%
Apartment
313,330

 
12.0
%
 
291,823

 
11.2
%
Mixed use/other
150,578

 
5.8
%
 
153,371

 
5.9
%
 
$
2,610,380

 
100.0
%
 
$
2,607,698

 
100.0
%
Rollforward of Allowance for Credit Losses
The following tables present a rollforward of our specific and general valuation allowances for mortgage loans on real estate:
 
Three Months Ended
March 31, 2014
 
Three Months Ended
March 31, 2013
 
Specific Allowance
 
General Allowance
 
Specific Allowance
 
General Allowance
 
(Dollars in thousands)
Beginning allowance balance
$
(16,847
)
 
$
(9,200
)
 
$
(23,134
)
 
$
(11,100
)
Charge-offs
949

 
—

 
1,569

 
—

Recoveries
—

 
—

 
—

 
—

Provision for credit losses
(564
)
 
400

 
(1,066
)
 
700

Ending allowance balance
$
(16,462
)
 
$
(8,800
)
 
$
(22,631
)
 
$
(10,400
)
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:
 
March 31, 2014
 
December 31, 2013
 
(Dollars in thousands)
Individually evaluated for impairment
$
42,986

 
$
47,018

Collectively evaluated for impairment
2,567,394

 
2,560,680

Total loans evaluated for impairment
$
2,610,380

 
$
2,607,698
Real Estate Acquired Via Foreclosure or Deed In Lieu
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
March 31,
 
2014
 
2013
 
(Dollars in thousands)
Real estate owned at beginning of period
$
22,844

 
$
33,172

Real estate acquired in satisfaction of mortgage loans
1,713

 
844

Sales
(3,030
)
 
(5,080
)
Impairments
(799
)
 
—

Depreciation
(136
)
 
(172
)
Real estate owned at end of period
$
20,592

 
$
28,764
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.
 
March 31, 2014
 
December 31, 2013
 
(Dollars in thousands)
Credit Exposure--By Payment Activity
 
 
 
Performing
$
2,591,196

 
$
2,593,276

In workout
7,956

 
6,248

Delinquent
—

 
—

Collateral dependent
11,228

 
8,174

 
$
2,610,380

 
$
2,607,698
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
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2014
$
—

 
$
—

 
$
—

 
$
—

 
$
2,599,152

 
$
11,228

 
$
2,610,380

December 31, 2013
$
—

 
$
—

 
$
—

 
$
—

 
$
2,599,524

 
$
8,174

 
$
2,607,698
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
 
(Dollars in thousands)
March 31, 2014
 
 
 
 
 
Mortgage loans with an allowance
$
26,524

 
$
42,986

 
$
(16,462
)
Mortgage loans with no related allowance
4,353

 
4,353

 
—

 
$
30,877

 
$
47,339

 
$
(16,462
)
December 31, 2013
 
 
 
 
 
Mortgage loans with an allowance
$
30,171

 
$
47,018

 
$
(16,847
)
Mortgage loans with no related allowance
3,264

 
3,264

 
—

 
$
33,435

 
$
50,282

 
$
(16,847
)
Troubled Debt Restructurings on Financing Receivables
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 March 31, 2014 and December 31, 2013 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)
March 31, 2014
 
 
 
 
 
 
 
 
Mountain
 
2
 
$
7,871

 
$
(893
)
 
$
6,978

South Atlantic
 
7
 
13,841

 
(4,177
)
 
9,664

East North Central
 
1
 
2,219

 
(467
)
 
1,752

West North Central
 
1
 
1,921

 
(475
)
 
1,446

West South Central
 
1
 
1,714

 
(255
)
 
1,459

 
 
12
 
$
27,566

 
$
(6,267
)
 
$
21,299

December 31, 2013
 
 
 
 
 
 
 
 
East
 
1
 
$
3,712

 
$
(949
)
 
$
2,763

Mountain
 
7
 
22,140

 
(329
)
 
21,811

South Atlantic
 
7
 
13,930

 
(4,177
)
 
9,753

East North Central
 
1
 
2,219

 
(467
)
 
1,752

West North Central
 
1
 
1,938

 
(475
)
 
1,463

West South Central
 
1
 
1,714

 
(256
)
 
1,458

 
 
18
 
$
45,653

 
$
(6,653
)
 
$
39,000