Mortgage Loans on Real Estate (Tables)

3 Months Ended

Mar. 31, 2017

Mortgage Loans on Real Estate [Abstract]

Our mortgage loan portfolio is summarized in the following table. There were commitments outstanding of $56.8 million at March 31, 2017.



	March 31, 2017			December 31, 2016
	(Dollars in thousands)
Principal outstanding	$	2,516,370		$	2,490,619
Loan loss allowance	(8,127		)	(8,427		)
Deferred prepayment fees	(1,252		)	(1,236		)
Carrying value	$	2,506,991		$	2,480,956

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, 2017				December 31, 2016
	Principal		Percent		Principal		Percent
	(Dollars in thousands)
Geographic distribution
East	$	622,220	24.7	%	$	635,434	25.5	%
Middle Atlantic	154,097		6.1	%	151,640		6.1	%
Mountain	241,197		9.6	%	235,932		9.5	%
New England	12,610		0.5	%	12,724		0.5	%
Pacific	403,297		16.0	%	385,683		15.5	%
South Atlantic	546,519		21.7	%	519,065		20.8	%
West North Central	313,751		12.5	%	325,447		13.1	%
West South Central	222,679		8.9	%	224,694		9.0	%
	$	2,516,370	100.0	%	$	2,490,619	100.0	%
Property type distribution
Office	$	297,522	11.8	%	$	308,578	12.4	%
Medical Office	38,637		1.6	%	50,780		2.1	%
Retail	910,986		36.2	%	886,942		35.6	%
Industrial/Warehouse	709,366		28.2	%	700,644		28.1	%
Apartment	380,630		15.1	%	375,837		15.1	%
Mixed use/other	179,229		7.1	%	167,838		6.7	%
	$	2,516,370	100.0	%	$	2,490,619	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:



	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
	Specific Allowance			General Allowance			Specific Allowance			General Allowance
	(Dollars in thousands)
Beginning allowance balance	$	(1,327	)	$	(7,100	)	$	(7,842	)	$	(6,300	)
Charge-offs	—			—			—			—
Recoveries	—			—			3,340			—
Change in provision for credit losses	—			300			(1,248		)	300
Ending allowance balance	$	(1,327	)	$	(6,800	)	$	(5,750	)	$	(6,000	)

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, 2017		December 31, 2016
	(Dollars in thousands)
Individually evaluated for impairment	$	4,595	$	4,640
Collectively evaluated for impairment	2,511,775		2,485,979
Total loans evaluated for impairment	$	2,516,370	$	2,490,619

Real Estate Acquired Via Foreclosure or Deed In Lieu

The following table summarizes the activity in real estate owned, included in Other investments, which was obtained in satisfaction of mortgage loans on real estate during the three months ended March 31, 2016:



	Three Months Ended March 31,
	2016
	(Dollars in thousands)
Real estate owned at beginning of period	$	6,485
Real estate acquired in satisfaction of mortgage loans	—
Additions	—
Sales	(1,106		)
Impairments	—
Depreciation	(23		)
Real estate owned at end of period	$	5,356

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, 2017		December 31, 2016
	(Dollars in thousands)
Credit Exposure--By Payment Activity
Performing	$	2,514,816	$	2,489,028
In workout	1,554		1,591
Delinquent	—		—
Collateral dependent	—		—
	$	2,516,370	$	2,490,619

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, 2017	$	6,791	$	—	$	—	$	6,791	$	2,509,579	$	—	$	2,516,370
December 31, 2016	$	2,737	$	—	$	—	$	2,737	$	2,487,882	$	—	$	2,490,619

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)
March 31, 2017
Mortgage loans with an allowance	$	3,268	$	4,595	$	(1,327	)
Mortgage loans with no related allowance	1,554		1,554		—
	$	4,822	$	6,149	$	(1,327	)
December 31, 2016
Mortgage loans with an allowance	$	3,313	$	4,640	$	(1,327	)
Mortgage loans with no related allowance	1,591		1,591		—
	$	4,904	$	6,231	$	(1,327	)



	Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
Three months ended March 31, 2017
Mortgage loans with an allowance	$	3,291	$	72
Mortgage loans with no related allowance	1,572		23
	$	4,863	$	95
Three months ended March 31, 2016
Mortgage loans with an allowance	$	13,999	$	264
Mortgage loans with no related allowance	1,709		26
	$	15,708	$	290

Troubled Debt Restructurings on Financing Receivables

A summary of mortgage loans on commercial real estate with outstanding principal at March 31, 2017 and December 31, 2016 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, 2017
South Atlantic	1	$	2,993	$	—		$	2,993
East North Central	1	1,998		(467		)	1,531
	2	$	4,991	$	(467	)	$	4,524
December 31, 2016
South Atlantic	1	$	3,004	$	—		$	3,004
East North Central	1	2,020		(467		)	1,553
	2	$	5,024	$	(467	)	$	4,557