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Mortgage Loans on Real Estate (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Summary of Mortgage Loan Portfolios

Our mortgage loan portfolios are summarized in the following table. There were commitments outstanding of $367.3 million at September 30, 2022.

			September 30, 2022						December 31, 2021
			(Dollars in thousands)
Commercial mortgage loans:
Principal outstanding			$	3,589,852					$	3,633,131
Deferred fees and costs, net			(6,260)						(4,629)
Amortized cost			3,583,592						3,628,502
Valuation allowance			(23,613)						(17,926)
Commercial mortgage loans, carrying value			3,559,979						3,610,576
Agricultural mortgage loans:
Principal outstanding			582,518						408,135
Deferred fees and costs, net			(1,723)						(1,136)
Amortized cost			580,795						406,999
Valuation allowance			(810)						(519)
Agricultural mortgage loans, carrying value			579,985						406,480
Residential mortgage loans:
Principal outstanding			2,423,962						1,652,910
Deferred fees and costs, net			1,441						1,468
Unamortized discounts and premiums, net			47,259						22,143
Amortized cost			2,472,662						1,676,521
Valuation allowance			(11,181)						(5,579)
Residential mortgage loans, carrying value			2,461,481						1,670,942
Mortgage loans, carrying value			$	6,601,445					$	5,687,998

Commercial Mortgage Loan Portfolio Summarized By Geographic Region and Property Type

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

			September 30, 2022												December 31, 2021
			Principal						Percent						Principal						Percent
			(Dollars in thousands)
Geographic distribution
East			$	522,913					14.6		%				$	614,406					16.9		%
Middle Atlantic			281,685						7.8		%				293,494						8.1		%
Mountain			425,348						11.9		%				452,818						12.5		%
New England			63,831						1.8		%				60,172						1.6		%
Pacific			864,749						24.1		%				863,879						23.8		%
South Atlantic			927,915						25.8		%				785,679						21.6		%
West North Central			209,532						5.8		%				235,864						6.5		%
West South Central			293,879						8.2		%				326,819						9.0		%
			$	3,589,852					100.0		%				$	3,633,131					100.0		%
Property type distribution
Office			$	388,414					10.8		%				$	315,374					8.7		%
Medical Office			10,408						0.3		%				10,827						0.3		%
Retail			913,201						25.4		%				1,016,101						28.0		%
Industrial/Warehouse			861,547						24.0		%				924,779						25.4		%
Apartment			923,717						25.7		%				864,580						23.8		%
Hotel			286,271						8.0		%				283,500						7.8		%
Mixed Use/Other			206,294						5.8		%				217,970						6.0		%
			$	3,589,852					100.0		%				$	3,633,131					100.0		%

Rollforward of Valuation Allowance on Mortgage Loan Portfolios

The following table represents a rollforward of the valuation allowance on our mortgage loan portfolios:

			Three Months Ended September 30, 2022
			Commercial						Agricultural						Residential						Total
			(Dollars in thousands)
Beginning allowance balance			$	(24,244)					$	(664)					$	(7,480)					$	(32,388)
Charge-offs			414						—						—						414
Recoveries			1,086						—						—						1,086
Change in provision for credit losses			(869)						(146)						(3,701)						(4,716)
Ending allowance balance			$	(23,613)					$	(810)					$	(11,181)					$	(35,604)
			Three Months Ended September 30, 2021
			Commercial						Agricultural						Residential						Total
			(Dollars in thousands)
Beginning allowance balance			$	(22,498)					$	(454)					$	(3,629)					$	(26,581)
Charge-offs			—						—						—						—
Recoveries			—						—						—						—
Change in provision for credit losses			4,808						(174)						389						5,023
Ending allowance balance			$	(17,690)					$	(628)					$	(3,240)					$	(21,558)
			Nine Months Ended September 30, 2022
			Commercial						Agricultural						Residential						Total
			(Dollars in thousands)
Beginning allowance balance			$	(17,926)					$	(519)					$	(5,579)					$	(24,024)
Charge-offs			414						—						—						414
Recoveries			1,315						—						—						1,315
Change in provision for credit losses			(7,416)						(291)						(5,602)						(13,309)
Ending allowance balance			$	(23,613)					$	(810)					$	(11,181)					$	(35,604)
			Nine Months Ended September 30, 2021
			Commercial						Agricultural						Residential						Total
			(Dollars in thousands)
Beginning allowance balance			$	(25,529)					$	(2,130)					$	(3,370)					$	(31,029)
Charge-offs			—						—						—						—
Recoveries			—						—						—						—
Change in provision for credit losses			7,839						1,502						130						9,471
Ending allowance balance			$	(17,690)					$	(628)					$	(3,240)					$	(21,558)

Mortgage Loans By Credit Quality Indicator

The amortized cost of our commercial mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected was as follows at September 30, 2022 and December 31, 2021 (by year of origination):

			2022						2021						2020						2019						2018						Prior						Total
As of September 30, 2022:			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV
Debt Service Coverage Ratio:			(Dollars in thousands)
Greater than or equal to 1.5			$	231,027		64		%	$	258,232		61		%	$	441,541		57		%	$	439,473		59		%	$	333,748		54		%	$	840,846		45		%	$	2,544,867		54		%
Greater than or equal to 1.2 and less than 1.5			6,486			70		%	124,082			56		%	28,910			61		%	116,762			67		%	73,807			69		%	147,784			60		%	497,831			62		%
Greater than or equal to 1.0 and less than 1.2			100,177			52		%	211,637			43		%	18,268			80		%	39,603			74		%	10,404			76		%	60,019			47		%	440,108			51		%
Less than 1.0			53,437			54		%	—			—		%	—			—		%	6,153			61		%	13,119			73		%	28,077			67		%	100,786			61		%
Total			$	391,127		60		%	$	593,951		53		%	$	488,719		58		%	$	601,991		61		%	$	431,078		58		%	$	1,076,726		47		%	$	3,583,592		55		%
			2021						2020						2019						2018						2017						Prior						Total
As of December 31, 2021:			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV
Debt Service Coverage Ratio:
Greater than or equal to 1.5			$	260,623		64		%	$	454,828		60		%	$	464,059		61		%	$	344,170		58		%	$	246,854		52		%	$	758,494		45		%	$	2,529,028		55		%
Greater than or equal to 1.2 and less than 1.5			12,836			67		%	58,960			66		%	128,301			70		%	89,293			66		%	135,818			66		%	129,833			57		%	555,041			65		%
Greater than or equal to 1.0 and less than 1.2			318,636			45		%	17,762			82		%	69,684			72		%	11,937			75		%	6,343			60		%	42,125			58		%	466,487			53		%
Less than 1.0			—			—		%	3,289			61		%	26,147			63		%	14,051			76		%	13,385			73		%	21,074			54		%	77,946			65		%
Total			$	592,095		54		%	$	534,839		61		%	$	688,191		64		%	$	459,451		60		%	$	402,400		58		%	$	951,526		47		%	$	3,628,502		56		%

The amortized cost of our agricultural mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected was as follows at September 30, 2022 and December 31, 2021 (by year of origination):

			2022						2021						2020						2019						2018						Prior						Total
As of September 30, 2022:			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV
Debt Service Coverage Ratio:			(Dollars in thousands)
Greater than or equal to 1.5			$	85,660		48		%	$	54,509		51		%	$	83,847		67		%	$	1,421		42		%	$	34,000		42		%	$	—		—		%	$	259,437		54		%
Greater than or equal to 1.2 and less than 1.5			96,443			54		%	96,648			54		%	99,008			42		%	4,347			18		%	—			—		%	—			—		%	296,446			50		%
Greater than or equal to 1.0 and less than 1.2			6,813			74		%	7,356			43		%	4,042			36		%	—			—		%	—			—		%	—			—		%	18,211			53		%
Less than 1.0			—			—		%	—			—		%	6,701			46		%	—			—		%	—			—		%	—			—		%	6,701			46		%
Total			$	188,916		52		%	$	158,513		53		%	$	193,598		53		%	$	5,768		24		%	$	34,000		42		%	$	—		—		%	$	580,795		52		%
			2021						2020						2019						2018						2017						Prior						Total
As of December 31, 2021:			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV			Amortized Cost			Average LTV
Debt Service Coverage Ratio:
Greater than or equal to 1.5			$	62,548		54		%	$	80,919		56		%	$	11,645		49		%	$	25,000		11		%	$	—		—		%	$	—		—		%	$	180,112		49		%
Greater than or equal to 1.2 and less than 1.5			95,738			55		%	102,958			43		%	3,335			22		%	—			—		%	—			—		%	—			—		%	202,031			48		%
Greater than or equal to 1.0 and less than 1.2			7,478			44		%	4,092			36		%	4,734			50		%	—			—		%	—			—		%	—			—		%	16,304			44		%
Less than 1.0			—			—		%	8,552			59		%	—			—		%	—			—		%	—			—		%	—			—		%	8,552			59		%
Total			$	165,764		54		%	$	196,521		49		%	$	19,714		45		%	$	25,000		11		%	$	—		—		%	$	—		—		%	$	406,999		48		%

Aging of Financing Receivables

Aging of financing receivables is summarized in the following table (by year of origination):

			2022						2021						2020						2019						2018						Prior						Total
As of September 30, 2022:			(Dollars in thousands)
Commercial mortgage loans
Current			$	391,127					$	593,951					$	488,719					$	601,991					$	431,078					$	1,076,726					$	3,583,592
30 - 59 days past due			—						—						—						—						—						—						—
60 - 89 days past due			—						—						—						—						—						—						—
Over 90 days past due			—						—						—						—						—						—						—
Total commercial mortgage loans			$	391,127					$	593,951					$	488,719					$	601,991					$	431,078					$	1,076,726					$	3,583,592
Agricultural mortgage loans
Current			$	188,916					$	158,513					$	190,463					$	5,768					$	34,000					$	—					$	577,660
30 - 59 days past due			—						—						—						—						—						—						—
60 - 89 days past due			—						—						—						—						—						—						—
Over 90 days past due			—						—						3,135						—						—						—						3,135
Total agricultural mortgage loans			$	188,916					$	158,513					$	193,598					$	5,768					$	34,000					$	—					$	580,795
Residential mortgage loans
Current			$	1,457,896					$	672,371					$	233,185					$	31,457					$	1,710					$	417					$	2,397,036
30 - 59 days past due			15,049						9,384						6,443						1,645						767						—						33,288
60 - 89 days past due			3,298						440						4,641						—						2,029						—						10,408
Over 90 days past due			2,917						22,550						6,463						—						—						—						31,930
Total residential mortgage loans			$	1,479,160					$	704,745					$	250,732					$	33,102					$	4,506					$	417					$	2,472,662
			2021						2020						2019						2018						2017						Prior						Total
As of December 31, 2021:			(Dollars in thousands)
Commercial mortgage loans
Current			$	592,095					$	534,839					$	688,191					$	459,451					$	402,400					$	951,526					$	3,628,502
30 - 59 days past due			—						—						—						—						—						—						—
60 - 89 days past due			—						—						—						—						—						—						—
Over 90 days past due			—						—						—						—						—						—						—
Total commercial mortgage loans			$	592,095					$	534,839					$	688,191					$	459,451					$	402,400					$	951,526					$	3,628,502
Agricultural mortgage loans
Current			$	165,764					$	196,521					$	19,714					$	25,000					$	—					$	—					$	406,999
30 - 59 days past due			—						—						—						—						—						—						—
60 - 89 days past due			—						—						—						—						—						—						—
Over 90 days past due			—						—						—						—						—						—						—
Total agricultural mortgage loans			$	165,764					$	196,521					$	19,714					$	25,000					$	—					$	—					$	406,999
Residential mortgage loans
Current			$	1,092,438					$	454,532					$	67,380					$	16,898					$	751					$	—					$	1,631,999
30 - 59 days past due			10,284						12,363						11,373						427						—						—						34,447
60 - 89 days past due			1,838						1,090						102						—						—						—						3,030
Over 90 days past due			679						5,459						907						—						—						—						7,045
Total residential mortgage loans			$	1,105,239					$	473,444					$	79,762					$	17,325					$	751					$	—					$	1,676,521

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Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

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