XML 32 R21.htm IDEA: XBRL DOCUMENT v3.20.2
Mortgage Loans on Real Estate (Tables)
 9 Months Ended
Sep. 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 $106.1 million at September 30, 2020.
September 30, 2020December 31, 2019
(Dollars in thousands)
Commercial mortgage loans:
Principal outstanding$3,778,317 $3,458,914 
Deferred fees and costs, net(1,827)(942)
Amortized cost3,776,490 3,457,972 
Valuation allowance(17,429)(9,179)
Commercial mortgage loans, carrying value3,759,061 3,448,793 
Residential mortgage loans:
Principal outstanding171,934 — 
Deferred fees and costs, net392 — 
Unamortized discounts and premiums, net(2,838)— 
Amortized cost169,488 — 
Valuation allowance(1,850)— 
Residential mortgage loans, carrying value167,638 — 
Mortgage loans, carrying value$3,926,699 $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:
September 30, 2020December 31, 2019
PrincipalPercentPrincipalPercent
(Dollars in thousands)
Geographic distribution
East$701,945 18.6 %$645,991 18.7 %
Middle Atlantic284,211 7.5 %284,597 8.2 %
Mountain447,623 11.8 %389,892 11.3 %
New England24,921 0.6 %9,152 0.3 %
Pacific788,267 20.9 %655,518 19.0 %
South Atlantic781,906 20.7 %751,199 21.7 %
West North Central297,526 7.9 %302,534 8.7 %
West South Central451,918 12.0 %420,031 12.1 %
$3,778,317 100.0 %$3,458,914 100.0 %
Property type distribution
Office$250,523 6.6 %$250,287 7.3 %
Medical Office21,022 0.6 %29,990 0.9 %
Retail1,199,877 31.8 %1,225,670 35.4 %
Industrial/Warehouse959,819 25.4 %896,558 25.9 %
Apartment941,858 24.9 %858,679 24.8 %
Agricultural208,303 5.5 %51,303 1.5 %
Mixed use/Other196,915 5.2 %146,427 4.2 %
$3,778,317 100.0 %$3,458,914 100.0 %
Rollforward of Allowance for Credit Losses
The following table represents a rollforward of the valuation allowance on our mortgage loan portfolios:
Three Months Ended September 30, 2020
CommercialResidentialTotal
(Dollars in thousands)
Beginning allowance balance $(18,439)$(1,650)$(20,089)
Charge-offs— — — 
Recoveries— — — 
Change in provision for credit losses1,010 (200)810 
Ending allowance balance$(17,429)$(1,850)$(19,279)
Nine Months Ended September 30, 2020
CommercialResidentialTotal
(Dollars in thousands)
Beginning allowance balance (1)$(17,779)$— $(17,779)
Charge-offs1,485 — 1,485 
Recoveries712 — 712 
Change in provision for credit losses(1,847)(1,850)(3,697)
Ending allowance balance$(17,429)$(1,850)$(19,279)
(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):
20202019201820172016PriorTotal
As of September 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$337,455 62 %$461,926 67 %$422,523 61 %$319,071 57 %$374,917 54 %$787,122 46 %$2,703,014 56 %
Greater than or equal to 1.2 and less than 1.5
204,841 60 %240,432 68 %119,076 67 %138,287 66 %53,101 64 %122,339 53 %878,076 64 %
Greater than or equal to 1.0 and less than 1.2
6,824 66 %54,341 57 %2,793 72 %7,698 65 %— — %28,700 64 %100,356 61 %
Less than 1.08,785 60 %41,674 56 %13,100 65 %10,247 69 %— — %21,238 56 %95,044 59 %
Total$557,905 62 %$798,373 66 %$557,492 62 %$475,303 60 %$428,018 55 %$959,399 47 %$3,776,490 58 %
Aging of Financing Receivables Aging of financing receivables is summarized in the following table (by year of origination):
20202019201820172016PriorTotal
As of September 30, 2020:(Dollars in thousands)
Commercial mortgage loans
Current$557,905 $798,373 $557,492 $475,303 $428,018 $959,399 $3,776,490 
30 - 59 days past due— — — — — — — 
60 - 89 days past due— — — — — — — 
Over 90 days past due— — — — — — — 
Total commercial mortgage loans$557,905 $798,373 $557,492 $475,303 $428,018 $959,399 $3,776,490 
Residential mortgage loans
Current$166,171 $— $— $— $— $— $166,171 
30 - 59 days past due2,546 — — — — — 2,546 
60 - 89 days past due771 — — — — — 771 
Over 90 days past due— — — — — — — 
Total residential mortgage loans$169,488 $— $— $— $— $— $169,488