Mortgage Loans on Real Estate (Tables)

3 Months Ended

Mar. 31, 2020

Our commercial mortgage loan portfolio is summarized in the following table. There were commitments outstanding of $247.5 million at March 31, 2020.



	March 31, 2020			December 31, 2019
	(Dollars in thousands)
Principal outstanding	$	3,689,302		$	3,458,914
Deferred prepayment fees	(901		)	(942		)
Amortized cost	3,688,401			3,457,972

Valuation allowance	(19,776		)	(9,179		)
Carrying value	$	3,668,625		$	3,448,793

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, 2020				December 31, 2019
	Principal		Percent		Principal		Percent
	(Dollars in thousands)
Geographic distribution
East	$	705,459	19.1	%	$	645,991	18.7	%
Middle Atlantic	290,232		7.9	%	284,597		8.2	%
Mountain	393,338		10.7	%	389,892		11.3	%
New England	11,284		0.3	%	9,152		0.3	%
Pacific	730,262		19.8	%	655,518		19.0	%
South Atlantic	809,663		21.9	%	751,199		21.7	%
West North Central	304,069		8.2	%	302,534		8.7	%
West South Central	444,995		12.1	%	420,031		12.1	%
	$	3,689,302	100.0	%	$	3,458,914	100.0	%
Property type distribution
Office	$	262,446	7.1	%	$	250,287	7.3	%
Medical Office	29,551		0.8	%	29,990		0.9	%
Retail	1,222,985		33.2	%	1,225,670		35.4	%
Industrial/Warehouse	938,104		25.4	%	896,558		25.9	%
Apartment	956,947		25.9	%	858,679		24.8	%
Agricultural	95,606		2.6	%	51,303		1.5	%
Mixed use/Other	183,663		5.0	%	146,427		4.2	%
	$	3,689,302	100.0	%	$	3,458,914	100.0	%

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, 2020		December 31, 2019
	(Dollars in thousands)
Credit Exposure - By Payment Activity
Performing	$	3,684,149	$	3,457,972
In workout	—		—
Collateral dependent	4,252		—
	$	3,688,401	$	3,457,972

A summary of our portfolio by LTV and DSC ratios based on the most recent information collected follows (by year of origination):



	2020				2019				2018				2017				2016				Prior				Total
As of March 31, 2020	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	$	209,636	63	%	$	463,287	67	%	$	411,362	61	%	$	308,703	58	%	$	394,953	56	%	$	863,496	47	%	$	2,651,437	56	%
Greater than or equal to 1.2 and less than 1.5	108,167		68	%	299,053		69	%	145,090		71	%	159,166		66	%	37,411		60	%	138,857		54	%	887,744		66	%
Greater than or equal to 1.0 and less than 1.2	3,600		68	%	36,219		61	%	11,056		73	%	15,725		65	%	4,017		47	%	45,125		60	%	115,742		62	%
Less than 1.0	—		—	%	1,450		43	%	9,472		70	%	—		—	%	—		—	%	22,556		52	%	33,478		57	%
Total	$	321,403	65	%	$	800,009	68	%	$	576,980	64	%	$	483,594	61	%	$	436,381	56	%	$	1,070,034	48	%	$	3,688,401	59	%

Rollforward of Allowance for Credit Losses

The following table presents a rollforward of our specific and general valuation allowances for our commercial mortgage loan portfolio:



	Three Months Ended March 31, 2020						Three Months Ended March 31, 2019
	Specific Allowance			General Allowance			Specific Allowance			General Allowance
	(Dollars in thousands)
Beginning allowance balance (1)	$	(229	)	$	(17,550	)	$	(229	)	$	(8,010	)
Charge-offs	—			—			—			—
Recoveries	—			—			—			—
Change in provision for credit losses	(2,197		)	200			—			60
Ending allowance balance	$	(2,426	)	$	(17,350	)	$	(229	)	$	(7,950	)

(1) Upon adoption of authoritative guidance effective January 1, 2020, we updated our accounting policies and methodology for calculating the general loan loss allowance, resulting in an adjustment to our commercial mortgage loan valuation allowance. See Note 1 for further details.

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, 2020	$	—	$	—	$	—	$	—	$	3,684,149	$	4,252	$	3,688,401
December 31, 2019	$	—	$	—	$	—	$	—	$	3,457,972	$	—	$	3,457,972