XML 48 R33.htm IDEA: XBRL DOCUMENT v3.8.0.1
Mortgage Loans on Real Estate (Tables)
 12 Months Ended
Dec. 31, 2017
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 $62.0 million at December 31, 2017.
 
December 31,
 
2017
 
2016
 
(Dollars in thousands)
Principal outstanding
$
2,674,315

 
$
2,490,619

Loan loss allowance
(7,518
)
 
(8,427
)
Deferred prepayment fees
(1,266
)
 
(1,236
)
Carrying value
$
2,665,531

 
$
2,480,956
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,
 
2017
 
2016
 
Principal
 
Percent
 
Principal
 
Percent
 
(Dollars in thousands)
Geographic distribution
 
 
 
 
 
 
 
East
$
548,067

 
20.5
%
 
$
635,434

 
25.5
%
Middle Atlantic
163,485

 
6.1
%
 
151,640

 
6.1
%
Mountain
308,486

 
11.5
%
 
235,932

 
9.5
%
New England
12,265

 
0.5
%
 
12,724

 
0.5
%
Pacific
466,030

 
17.4
%
 
385,683

 
15.5
%
South Atlantic
609,736

 
22.8
%
 
519,065

 
20.8
%
West North Central
324,808

 
12.2
%
 
325,447

 
13.1
%
West South Central
241,438

 
9.0
%
 
224,694

 
9.0
%
 
$
2,674,315

 
100.0
%
 
$
2,490,619

 
100.0
%
Property type distribution

 
 
 

 
 
Office
$
283,926

 
10.6
%
 
$
308,578

 
12.4
%
Medical Office
34,338

 
1.3
%
 
50,780

 
2.1
%
Retail
1,040,028

 
38.9
%
 
886,942

 
35.6
%
Industrial/Warehouse
677,770

 
25.3
%
 
700,644

 
28.1
%
Apartment
462,897

 
17.3
%
 
375,837

 
15.1
%
Mixed use/other
175,356

 
6.6
%
 
167,838

 
6.7
%
 
$
2,674,315

 
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:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
Specific
Allowance
 
General
Allowance
 
Specific
Allowance
 
General
Allowance
 
Specific
Allowance
 
General
Allowance
 
(Dollars in thousands)
Beginning allowance balance
$
(1,327
)
 
$
(7,100
)
 
$
(7,842
)
 
$
(6,300
)
 
$
(12,333
)
 
$
(10,300
)
Charge-offs
—

 
—

 
5,078

 
—

 
2,045

 
—

Recoveries
631

 
—

 
5,483

 
—

 
5,428

 
—

Change in provision for credit losses
(722
)
 
1,000

 
(4,046
)
 
(800
)
 
(2,982
)
 
4,000

Ending allowance balance
$
(1,418
)
 
$
(6,100
)
 
$
(1,327
)
 
$
(7,100
)
 
$
(7,842
)
 
$
(6,300
)
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,
 
2017
 
2016
 
2015
 
(Dollars in thousands)
Individually evaluated for impairment
$
5,445

 
$
4,640

 
$
21,277

Collectively evaluated for impairment
2,668,870

 
2,485,979

 
2,428,632

Total loans evaluated for impairment
$
2,674,315

 
$
2,490,619

 
$
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:
 
Year Ended December 31,
 
2016
 
2015
 
(Dollars in thousands)
Real estate owned at beginning of period
$
6,485

 
$
20,238

Additions
—

 
121

Sales
(6,444
)
 
(12,322
)
Impairments
—

 
(1,297
)
Depreciation
(41
)
 
(255
)
Real estate owned at end of period
$
—

 
$
6,485
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,
 
2017
 
2016
 
(Dollars in thousands)
Credit Exposure - By Payment Activity
 
 
 
Performing
$
2,670,657

 
$
2,489,028

In workout
1,436

 
1,591

Collateral dependent
2,222

 
—

 
$
2,674,315

 
$
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
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
$
—

 
$
—

 
$
—

 
$
—

 
$
2,672,093

 
$
2,222

 
$
2,674,315

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)
December 31, 2017
 
 
 
 
 
Mortgage loans with an allowance
$
4,027

 
$
5,445

 
$
(1,418
)
Mortgage loans with no related allowance
1,436

 
1,436

 
—

 
$
5,463

 
$
6,881

 
$
(1,418
)
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)
December 31, 2017
 
 
 
Mortgage loans with an allowance
$
4,464

 
$
221

Mortgage loans with no related allowance
1,513

 
91

 
$
5,977

 
$
312

December 31, 2016
 
 
 
Mortgage loans with an allowance
$
3,398

 
$
301

Mortgage loans with no related allowance
1,665

 
73

 
$
5,063

 
$
374

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
Troubled Debt Restructurings on Financing Receivables
A summary of mortgage loans on commercial real estate with outstanding principal at December 31, 2017 and 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)
Year ended December 31, 2017
 
 
 
 
 
 
 
 
South Atlantic
 
1
 
$
2,947

 
$
—

 
$
2,947

East North Central
 
1
 
1,933

 
(467
)
 
1,466

 
 
2
 
$
4,880

 
$
(467
)
 
$
4,413

 
 
 
 
 
 
 
 
 
Year ended 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