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Mortgage Loans on Real Estate (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Summary of Mortgage Loan Portfolio Our commercial and residential mortgage loan portfolios are summarized in the following table. There were commitments outstanding of $65.1 million at June 30, 2020.
 
June 30, 2020
 
December 31, 2019
 
(Dollars in thousands)
Commercial mortgage loans:
 
 
 
Principal outstanding
$
3,828,972

 
$
3,458,914

Deferred fees and costs, net
(1,858
)
 
(942
)
Amortized cost
3,827,114

 
3,457,972

Valuation allowance
(18,439
)
 
(9,179
)
Commercial mortgage loans, carrying value
3,808,675

 
3,448,793

 
 
 
 
Residential mortgage loans:
 
 
 
Principal outstanding
153,913

 
—

Deferred fees and costs, net
373

 
—

Unamortized discount
(3,078
)
 
—

Amortized cost
151,208

 
—

Valuation allowance
(1,650
)
 
—

Residential mortgage loans, carrying value
149,558

 
—

Mortgage loans, carrying value
$
3,958,233

 
$
3,448,793
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:
 
June 30, 2020
 
December 31, 2019
 
Principal
 
Percent
 
Principal
 
Percent
 
(Dollars in thousands)
Geographic distribution
 
 
 
 
 
 
 
East
$
714,198

 
18.7
%
 
$
645,991

 
18.7
%
Middle Atlantic
287,864

 
7.5
%
 
284,597

 
8.2
%
Mountain
444,495

 
11.6
%
 
389,892

 
11.3
%
New England
25,066

 
0.7
%
 
9,152

 
0.3
%
Pacific
782,240

 
20.4
%
 
655,518

 
19.0
%
South Atlantic
820,260

 
21.4
%
 
751,199

 
21.7
%
West North Central
308,874

 
8.1
%
 
302,534

 
8.7
%
West South Central
445,975

 
11.6
%
 
420,031

 
12.1
%
 
$
3,828,972

 
100.0
%
 
$
3,458,914

 
100.0
%
Property type distribution
 
 
 
 
 
 
 
Office
$
259,888

 
6.8
%
 
$
250,287

 
7.3
%
Medical Office
27,372

 
0.7
%
 
29,990

 
0.9
%
Retail
1,225,212

 
32.0
%
 
1,225,670

 
35.4
%
Industrial/Warehouse
974,579

 
25.5
%
 
896,558

 
25.9
%
Apartment
971,536

 
25.4
%
 
858,679

 
24.8
%
Agricultural
177,333

 
4.6
%
 
51,303

 
1.5
%
Mixed use/Other
193,052

 
5.0
%
 
146,427

 
4.2
%
 
$
3,828,972

 
100.0
%
 
$
3,458,914

 
100.0
%
Rollforward of Allowance for Credit Losses
The following table represents a rollforward of the valuation of our mortgage loan portfolios:
 
Three Months Ended June 30, 2020
 
Commercial
 
Residential
 
Total
 
(Dollars in thousands)
Beginning allowance balance (1)
$
(19,776
)
 
$
—

 
$
(19,776
)
Charge-offs
1,485

 
—

 
1,485

Recoveries
712

 
—

 
712

Change in provision for credit losses
(860
)
 
(1,650
)
 
(2,510
)
Ending allowance balance
$
(18,439
)
 
$
(1,650
)
 
$
(20,089
)
 
 
 
 
 
 
 
Six Months Ended June 30, 2020
 
Commercial
 
Residential
 
Total
 
(Dollars in thousands)
Beginning allowance balance (1)
$
(17,779
)
 
$
—

 
$
(17,779
)
Charge-offs
1,485

 
—

 
1,485

Recoveries
712

 
—

 
712

Change in provision for credit losses
(2,857
)
 
(1,650
)
 
(4,507
)
Ending allowance balance
$
(18,439
)
 
$
(1,650
)
 
$
(20,089
)
(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 mortgage loan valuation allowance. See Note 1 for further details.
Commercial Mortgage Loans By Credit Quality Indicator A summary of our commercial mortgage loan 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 June 30, 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
$
316,727

64
%
$
455,910

67
%
$
405,363

61
%
$
310,373

58
%
$
378,311

55
%
$
816,947

46
%
$
2,683,631

56
%
Greater than or equal to 1.2 and less than 1.5
187,242

63
%
256,913

69
%
141,693

68
%
151,241

65
%
54,324

62
%
159,528

54
%
950,941

64
%
Greater than or equal to 1.0 and less than 1.2
5,966

68
%
61,471

58
%
8,931

75
%
15,548

64
%
—

—
%
22,868

63
%
114,784

62
%
Less than 1.0
8,784

60
%
25,220

44
%
18,550

65
%
2,996

62
%
—

—
%
22,208

51
%
77,758

54
%
Total
$
518,719

64
%
$
799,514

66
%
$
574,537

63
%
$
480,158

60
%
$
432,635

56
%
$
1,021,551

48
%
$
3,827,114

58
%
Aging of Financing Receivables Aging of financing receivables is summarized in the following table (by year of origination):
 
2020
 
2019
 
2018
 
2017
 
2016
 
Prior
 
Total
As of June 30, 2020:
(Dollars in thousands)
Commercial mortgage loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
518,719

 
$
799,514

 
$
574,537

 
$
480,158

 
$
432,635

 
$
1,021,551

 
$
3,827,114

30 - 59 days past due
—

 
—

 
—

 
—

 
—

 
—

 
—

60 - 89 days past due
—

 
—

 
—

 
—

 
—

 
—

 
—

Over 90 days past due
—

 
—

 
—

 
—

 
—

 
—

 
—

Total commercial mortgage loans
$
518,719

 
$
799,514

 
$
574,537

 
$
480,158

 
$
432,635

 
$
1,021,551

 
$
3,827,114

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
138,749

 
$
12,459

 
$
—

 
$
—

 
$
—

 
$
—

 
$
151,208

30 - 59 days past due
—

 
—

 
—

 
—

 
—

 
—

 
—

60 - 89 days past due
—

 
—

 
—

 
—

 
—

 
—

 
—

Over 90 days past due
—

 
—

 
—

 
—

 
—

 
—

 
—

Total residential mortgage loans
$
138,749

 
$
12,459

 
$
—

 
$
—

 
$
—

 
$
—

 
$
151,208