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Mortgage Loans on Real Estate (Tables)
 12 Months Ended
Dec. 31, 2015
Mortgage Loans on Real Estate [Abstract]  
Summary of Mortgage Loan Portfolio
Our mortgage loan portfolio is summarized in the following table. There were commitments outstanding of $97.2 million at December 31, 2015.
 
December 31,
 
2015
 
2014
 
(Dollars in thousands)
Principal outstanding
$
2,449,909

 
$
2,457,721

Loan loss allowance
(14,142
)
 
(22,633
)
Deferred prepayment fees
(510
)
 
(508
)
Carrying value
$
2,435,257

 
$
2,434,580
Mortgage Loan Portfolio Summarized by Geographic Region and Property Type
The portfolio consists of commercial mortgage loans collateralized by the related properties and diversified as to property type, location and loan size. Our mortgage lending policies establish limits on the amount that can be loaned to one borrower and other criteria to attempt to reduce the risk of default. The mortgage loan portfolio is summarized by geographic region and property type as follows:
 
December 31,
 
2015
 
2014
 
Principal
 
Percent
 
Principal
 
Percent
 
(Dollars in thousands)
Geographic distribution
 
 
 
 
 
 
 
East
$
698,113

 
28.5
%
 
$
701,638

 
28.5
%
Middle Atlantic
160,261

 
6.6
%
 
166,249

 
6.8
%
Mountain
252,442

 
10.3
%
 
279,075

 
11.4
%
New England
13,161

 
0.5
%
 
12,280

 
0.5
%
Pacific
355,268

 
14.5
%
 
302,307

 
12.3
%
South Atlantic
456,227

 
18.6
%
 
471,849

 
19.2
%
West North Central
313,120

 
12.8
%
 
349,028

 
14.2
%
West South Central
201,317

 
8.2
%
 
175,295

 
7.1
%
 
$
2,449,909

 
100.0
%
 
$
2,457,721

 
100.0
%
Property type distribution

 
 
 

 
 
Office
$
396,154

 
16.2
%
 
$
484,585

 
19.7
%
Medical Office
77,438

 
3.2
%
 
88,275

 
3.6
%
Retail
790,158

 
32.2
%
 
711,775

 
29.0
%
Industrial/Warehouse
686,400

 
28.0
%
 
649,425

 
26.4
%
Hotel
3,361

 
0.1
%
 
30,640

 
1.3
%
Apartment
352,971

 
14.4
%
 
335,087

 
13.6
%
Mixed use/other
143,427

 
5.9
%
 
157,934

 
6.4
%
 
$
2,449,909

 
100.0
%
 
$
2,457,721

 
100.0
%
Rollforward of Allowance For Credit Losses
The following table presents a rollforward of our specific and general valuation allowances for mortgage loans on real estate:
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
Specific
Allowance
 
General
Allowance
 
Specific
Allowance
 
General
Allowance
 
Specific
Allowance
 
General
Allowance
 
(Dollars in thousands)
Beginning allowance balance
$
(12,333
)
 
$
(10,300
)
 
$
(16,847
)
 
$
(9,200
)
 
$
(23,134
)
 
$
(11,100
)
Charge-offs
2,045

 
—

 
9,211

 
—

 
9,738

 
—

Recoveries
5,428

 
—

 
255

 
—

 
4,070

 
—

Change in provision for credit losses
(2,982
)
 
4,000

 
(4,952
)
 
(1,100
)
 
(7,521
)
 
1,900

Ending allowance balance
$
(7,842
)
 
$
(6,300
)
 
$
(12,333
)
 
$
(10,300
)
 
$
(16,847
)
 
$
(9,200
)
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:
 
December 31,
 
2015
 
2014
 
2013
 
(Dollars in thousands)
Individually evaluated for impairment
$
21,277

 
$
29,116

 
$
47,018

Collectively evaluated for impairment
2,428,632

 
2,428,605

 
2,560,680

Total loans evaluated for impairment
$
2,449,909

 
$
2,457,721

 
$
2,607,698
Real Estate Acquired Via Foreclosure or Deed In Lieu
he following table summarizes the activity in the real estate owned, included in Other investments, which was obtained in satisfaction of mortgage loans on real estate:
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
(Dollars in thousands)
Real estate owned at beginning of period
$
20,238

 
$
22,844

 
$
33,172

Real estate acquired in satisfaction of mortgage loans
—

 
14,555

 
8,217

Additions
121

 
—

 
626

Sales
(12,322
)
 
(14,134
)
 
(17,358
)
Impairments
(1,297
)
 
(2,441
)
 
(1,195
)
Depreciation
(255
)
 
(586
)
 
(618
)
Real estate owned at end of period
$
6,485

 
$
20,238

 
$
22,844
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.
 
December 31,
 
2015
 
2014
 
(Dollars in thousands)
Credit Exposure--By Payment Activity
 
 
 
Performing
$
2,438,341

 
$
2,451,760

In workout
11,568

 
—

Delinquent
—

 
—

Collateral dependent
—

 
5,961

 
$
2,449,909

 
$
2,457,721
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
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
$
—

 
$
—

 
$
—

 
$
—

 
$
2,449,909

 
$
—

 
$
2,449,909

December 31, 2014
$
—

 
$
—

 
$
—

 
$
—

 
$
2,451,760

 
$
5,961

 
$
2,457,721
Impaired Financing Receivables
Financing receivables summarized in the following two tables 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 or more 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)
December 31, 2015
 
 
 
 
 
Mortgage loans with an allowance
$
13,435

 
$
21,277

 
$
(7,842
)
Mortgage loans with no related allowance
8,859

 
8,859

 
—

 
$
22,294

 
$
30,136

 
$
(7,842
)
December 31, 2014
 
 
 
 
 
Mortgage loans with an allowance
$
16,783

 
$
29,116

 
$
(12,333
)
Mortgage loans with no related allowance
2,656

 
2,656

 
—

 
$
19,439

 
$
31,772

 
$
(12,333
)

 
Average Recorded Investment
 
Interest Income Recognized
 
(Dollars in thousands)
December 31, 2015
 
 
 
Mortgage loans with an allowance
$
13,893

 
$
1,117

Mortgage loans with no related allowance
8,930

 
584

 
$
22,823

 
$
1,701

December 31, 2014
 
 
 
Mortgage loans with an allowance
$
18,465

 
$
1,797

Mortgage loans with no related allowance
2,656

 
43

 
$
21,121

 
$
1,840

December 31, 2013
 
 
 
Mortgage loans with an allowance
$
33,772

 
$
2,094

Mortgage loans with no related allowance
3,264

 
138

 
$
37,036

 
$
2,232
Troubled Debt Restructurings on Financing Receivables
A summary of mortgage loans on commercial real estate with outstanding principal at December 31, 2015 and 2014 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)
Year ended December 31, 2015:
 
 
 
 
 
 
 
 
South Atlantic
 
6
 
$
11,155

 
$
(2,992
)
 
$
8,163

East North Central
 
2
 
3,306

 
(467
)
 
2,839

West North Central
 
1
 
5,913

 
—

 
5,913

 
 
9
 
$
20,374

 
$
(3,459
)
 
$
16,915

 
 
 
 
 
 
 
 
 
Year ended December 31, 2014:
 
 
 
 
 
 
 
 
South Atlantic
 
7
 
$
14,475

 
$
(4,244
)
 
$
10,231

East North Central
 
1
 
2,177

 
(467
)
 
1,710

West North Central
 
1
 
1,881

 
(1,047
)
 
834

 
 
9
 
$
18,533

 
$
(5,758
)
 
$
12,775