Mortgage Loans on Real Estate (Tables)

6 Months Ended

Jun. 30, 2016

Mortgage Loans on Real Estate [Abstract]

Our mortgage loan portfolio is summarized in the following table. There were commitments outstanding of $66.5 million at June 30, 2016.



	June 30, 2016			December 31, 2015
	(Dollars in thousands)
Principal outstanding	$	2,463,412		$	2,449,909
Loan loss allowance	(10,852		)	(14,142		)
Deferred prepayment fees	(1,185		)	(510		)
Carrying value	$	2,451,375		$	2,435,257

Mortgage Loan Portfolio Summarized by Geographic Region and Property Type

The mortgage loan portfolio is summarized by geographic region and property type as follows:



	June 30, 2016				December 31, 2015
	Principal		Percent		Principal		Percent
	(Dollars in thousands)
Geographic distribution
East	$	672,512	27.3	%	$	698,113	28.5	%
Middle Atlantic	160,283		6.5	%	160,261		6.6	%
Mountain	234,568		9.5	%	252,442		10.3	%
New England	12,944		0.6	%	13,161		0.5	%
Pacific	385,306		15.6	%	355,268		14.5	%
South Atlantic	472,253		19.2	%	456,227		18.6	%
West North Central	325,402		13.2	%	313,120		12.8	%
West South Central	200,144		8.1	%	201,317		8.2	%
	$	2,463,412	100.0	%	$	2,449,909	100.0	%
Property type distribution
Office	$	341,209	13.9	%	$	396,154	16.2	%
Medical Office	72,087		2.9	%	77,438		3.2	%
Retail	815,013		33.1	%	790,158		32.2	%
Industrial/Warehouse	690,503		28.0	%	686,400		28.0	%
Hotel	3,255		0.1	%	3,361		0.1	%
Apartment	372,459		15.1	%	352,971		14.4	%
Mixed use/other	168,886		6.9	%	143,427		5.9	%
	$	2,463,412	100.0	%	$	2,449,909	100.0	%

Rollforward of Allowance for Credit Losses

The following table presents a rollforward of our specific and general loss allowances for mortgage loans on real estate:



	Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
	Specific Allowance			General Allowance			Specific Allowance			General Allowance
	(Dollars in thousands)
Beginning allowance balance	$	(5,750	)	$	(6,000	)	$	(12,452	)	$	(7,000	)
Charge-offs	2,101			—			15			—
Recoveries	1,682			—			3,120			—
Change in provision for credit losses	(2,585		)	(300		)	1			(500		)
Ending allowance balance	$	(4,552	)	$	(6,300	)	$	(9,316	)	$	(7,500	)

	Six Months Ended June 30, 2016						Six Months Ended June 30, 2015
	Specific Allowance			General Allowance			Specific Allowance			General Allowance
	(Dollars in thousands)
Beginning allowance balance	$	(7,842	)	$	(6,300	)	$	(12,333	)	$	(10,300	)
Charge-offs	2,101			—			143			—
Recoveries	5,022			—			4,375			—
Change in provision for credit losses	(3,833		)	—			(1,501		)	2,800
Ending allowance balance	$	(4,552	)	$	(6,300	)	$	(9,316	)	$	(7,500	)

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:



	June 30, 2016		December 31, 2015
	(Dollars in thousands)
Individually evaluated for impairment	$	10,342	$	21,277
Collectively evaluated for impairment	2,453,070		2,428,632
Total loans evaluated for impairment	$	2,463,412	$	2,449,909

Real Estate Acquired Via Foreclosure or Deed In Lieu

The 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:



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(Dollars in thousands)
Real estate owned at beginning of period	$	5,356		$	14,611		$	6,485		$	20,238
Real estate acquired in satisfaction of mortgage loans	—			—			—			—
Sales	(5,338		)	(1,581		)	(6,444		)	(6,480		)
Impairments	—			—			—			(629		)
Depreciation	(18		)	(72		)	(41		)	(171		)
Real estate owned at end of period	$	—		$	12,958		$	—		$	12,958

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.



	June 30, 2016		December 31, 2015
	(Dollars in thousands)
Credit Exposure--By Payment Activity
Performing	$	2,453,915	$	2,438,341
In workout	1,648		11,568
Delinquent	—		—
Collateral dependent	7,849		—
	$	2,463,412	$	2,449,909

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
June 30, 2016	$	—	$	—	$	—	$	—	$	2,455,563	$	7,849	$	2,463,412
December 31, 2015	$	—	$	—	$	—	$	—	$	2,449,909	$	—	$	2,449,909

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 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)
June 30, 2016
Mortgage loans with an allowance	$	5,790	$	10,342	$	(4,552	)
Mortgage loans with no related allowance	4,723		4,723		—
	$	10,513	$	15,065	$	(4,552	)
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	)



	Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
Three months ended June 30, 2016
Mortgage loans with an allowance	$	6,921	$	164
Mortgage loans with no related allowance	4,737		74
	$	11,658	$	238
Three months ended June 30, 2015
Mortgage loans with an allowance	$	15,518	$	394
Mortgage loans with no related allowance	11,856		180
	$	27,374	$	574
Six months ended June 30, 2016
Mortgage loans with an allowance	$	7,166	$	329
Mortgage loans with no related allowance	4,793		150
	$	11,959	$	479
Six months ended June 30, 2015
Mortgage loans with an allowance	$	15,893	$	738
Mortgage loans with no related allowance	11,873		372
	$	27,766	$	1,110

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 June 30, 2016 and December 31, 2015 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)
June 30, 2016
South Atlantic	2	$	3,881	$	(461	)	$	3,420
East North Central	1	2,061		(467		)	1,594
	3	$	5,942	$	(928	)	$	5,014
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