XML 74 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
Loans and Other Lending Investments, net (Tables)
 6 Months Ended
Jun. 30, 2012
Loans and Other Lending Investments Net  
Schedule of the Company's loans and other lending investments by class
The following is a summary of the Company's loans and other lending investments by class ($ in thousands)(1):

 
As of
Type of Investment(1)
June 30,
2012
 
December 31,
2011
Senior mortgages
$
2,237,764

 
$
2,801,213

Subordinate mortgages
149,735

 
211,491

Corporate/Partnership loans
461,425

 
478,892

Total gross carrying value of loans(1)
$
2,848,924

 
$
3,491,596

Reserves for loan losses
(563,786
)
 
(646,624
)
Total carrying value of loans
$
2,285,138

 
$
2,844,972

Other lending investments—securities
15,672

 
15,790

Total loans and other lending investments, net
$
2,300,810

 
$
2,860,762

Explanatory Note:
_______________________________________________________________________________

(1)
The Company's recorded investment in loans as of June 30, 2012 and December 31, 2011 was $2.86 billion and $3.50 billion, respectively, which consists of total gross carrying value of loans plus accrued interest of $10.4 million and $13.3 million, for the same two periods, respectively.
Schedule of changes in the Company's reserve for loan losses
Reserve for Loan Losses—Changes in the Company's reserve for loan losses were as follows ($ in thousands):

 
For the Three Months
Ended June 30,
 
For the Six Months
Ended June 30,
 
2012
 
2011
 
2012
 
2011
Reserve for loan losses at beginning of period
$
567,179

 
$
804,070

 
$
646,624

 
$
814,625

Provision for loan losses
26,531

 
10,350

 
44,031

 
21,230

Charge-offs
(29,924
)
 
(113,192
)
 
(126,869
)
 
(134,627
)
Reserve for loan losses at end of period
$
563,786

 
$
701,228

 
$
563,786

 
$
701,228
Schedule of recorded investment in loans and associated reserve for loan losses
The Company's recorded investment (comprised of a loan's carrying value plus accrued interest) in loans and the associated reserve for loan losses were as follows ($ in thousands):

 
Individually
Evaluated for
Impairment(1)
 
Collectively
Evaluated for
Impairment(2)
 
Loans Acquired
with Deteriorated
Credit Quality(3)
 
Total
As of June 30, 2012
 
 
 
 
 
 
 
Loans
$
1,278,305

 
$
1,523,578

 
$
57,461

 
$
2,859,344

Less: Reserve for loan losses
(487,645
)
 
(56,800
)
 
(19,341
)
 
(563,786
)
Total
$
790,660

 
$
1,466,778

 
$
38,120

 
$
2,295,558

As of December 31, 2011
 
 
 
 
 
 
 
Loans
$
1,525,337

 
$
1,919,876

 
$
59,648

 
$
3,504,861

Less: Reserve for loan losses
(554,131
)
 
(73,500
)
 
(18,993
)
 
(646,624
)
Total
$
971,206

 
$
1,846,376

 
$
40,655

 
$
2,858,237


Explanatory Notes:
_______________________________________________________________________________

(1)
The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $1.3 million and a net premium of $0.1 million as of June 30, 2012 and December 31, 2011, respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status and therefore, the unamortized amounts associated with these loans are not currently being amortized into income.
(2)
The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $2.1 million and $0.2 million as of June 30, 2012 and December 31, 2011, respectively.
(3)
The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net premium of $0.1 million and a net discount of $15.0 million as of June 30, 2012 and December 31, 2011. These loans had cumulative principal balances of $57.7 million and $74.5 million, as of June 30, 2012 and December 31, 2011, respectively.
Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating
The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands):

 
As of
 
June 30, 2012
 
December 31, 2011
 
Performing
Loans
 
Weighted
Average
Risk Ratings
 
Performing
Loans
 
Weighted
Average
Risk Ratings
Senior mortgages
$
1,176,248

 
3.00

 
$
1,514,016

 
3.19

Subordinate mortgages
97,520

 
2.41

 
190,342

 
3.36

Corporate/Partnership loans
455,320

 
3.73

 
472,178

 
3.61

Total
$
1,729,088

 
3.16

 
$
2,176,536

 
3.29
Schedule of recorded investment in loans, aged by payment status and presented by class
As of June 30, 2012, the Company's recorded investment in loans, aged by payment status and presented by class, were as follows ($ in thousands):

 
Current
 
Less Than
and Equal
to 90 Days(1)
 
Greater
Than
90 Days(1)
 
Total
Past Due
 
Total
Senior mortgages
$
1,276,006

 
$
124,371

 
$
842,908

 
$
967,279

 
$
2,243,285

Subordinate mortgages
97,520

 
—

 
53,109

 
53,109

 
150,629

Corporate/Partnership loans
455,320

 
—

 
10,110

 
10,110

 
465,430

Total
$
1,828,846

 
$
124,371

 
$
906,127

 
$
1,030,498

 
$
2,859,344


Explanatory Note:
_______________________________________________________________________________

(1)
As of June 30, 2012, all loans that are not current are classified as non-performing and are on non-accrual status.
Schedule of recorded investment in impaired loans, presented by class
Impaired Loans—The Company's recorded investment in impaired loans, presented by class, were as follows ($ in thousands)(1):

 
As of June 30, 2012
 
As of December 31, 2011
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Senior mortgages
$
153,956

 
$
153,565

 
$
—

 
$
219,488

 
$
218,612

 
$
—

Corporate/Partnership loans
10,110

 
10,160

 
—

 
10,110

 
10,160

 
—

Subtotal
$
164,066

 
$
163,725

 
$
—

 
$
229,598

 
$
228,772

 
$
—

With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Senior mortgages
$
1,058,007

 
$
1,053,514

 
$
(470,617
)
 
$
1,268,962

 
$
1,263,195

 
$
(540,670
)
Subordinate mortgages
53,109

 
52,881

 
(27,309
)
 
22,480

 
22,558

 
(22,480
)
Corporate/Partnership loans
60,584

 
60,804

 
(9,060
)
 
62,591

 
62,845

 
(9,974
)
Subtotal
$
1,171,700

 
$
1,167,199

 
$
(506,986
)
 
$
1,354,033

 
$
1,348,598

 
$
(573,124
)
Total:
 
 
 
 
 
 
 
 
 
 
 
Senior mortgages
$
1,211,963

 
$
1,207,079

 
$
(470,617
)
 
$
1,488,450

 
$
1,481,807

 
$
(540,670
)
Subordinate mortgages
53,109

 
52,881

 
(27,309
)
 
22,480

 
22,558

 
(22,480
)
Corporate/Partnership loans
70,694

 
70,964

 
(9,060
)
 
72,701

 
73,005

 
(9,974
)
Total
$
1,335,766

 
$
1,330,924

 
$
(506,986
)
 
$
1,583,631

 
$
1,577,370

 
$
(573,124
)
Explanatory Note:
_______________________________________________________________________________

(1)
All of the Company's non-accrual loans are considered impaired and included in the table above. In addition, as of June 30, 2012 and December 31, 2011, certain loans modified through troubled debt restructurings with a recorded investment of $205.5 million and $255.3 million, respectively, are also included as impaired loans in accordance with GAAP although they are performing and on accrual status.
Schedule of average recorded investment in impaired loans and interest income recognized, presented by class
The Company's average recorded investment in impaired loans and interest income recognized, presented by class, were as follows ($ in thousands):

 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior mortgages
$
180,037

 
$
1,799

 
$
352,098

 
$
28,620

 
$
193,187

 
$
2,206

 
$
369,686

 
$
29,586

Corporate/Partnership loans
10,110

 
—

 
10,110

 
200

 
10,110

 
—

 
10,110

 
320

Subtotal
$
190,147

 
$
1,799

 
$
362,208

 
$
28,820

 
$
203,297

 
$
2,206

 
$
379,796

 
$
29,906

With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior mortgages
$
1,041,613

 
$
1,194

 
$
1,668,373

 
$
2,117

 
$
1,117,396

 
$
2,434

 
$
1,723,584

 
$
4,121

Subordinate mortgages
65,659

 
—

 
25,624

 
—

 
51,266

 
—

 
17,083

 
—

Corporate/Partnership loans
61,956

 
76

 
69,263

 
86

 
62,168

 
156

 
67,663

 
169

Subtotal
$
1,169,228

 
$
1,270

 
$
1,763,260

 
$
2,203

 
$
1,230,830

 
$
2,590

 
$
1,808,330

 
$
4,290

Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior mortgages
$
1,221,650

 
$
2,993

 
$
2,020,471

 
$
30,737

 
$
1,310,583

 
$
4,640

 
$
2,093,270

 
$
33,707

Subordinate mortgages
65,659

 
—

 
25,624

 
—

 
51,266

 
—

 
17,083

 
—

Corporate/Partnership loans
72,066

 
76

 
79,373

 
286

 
72,278

 
156

 
77,773

 
489

Total
$
1,359,375

 
$
3,069

 
$
2,125,468

 
$
31,023

 
$
1,434,127

 
$
4,796

 
$
2,188,126

 
$
34,196
Schedule of troubled debt restructurings, presented by class
The recorded investment in these loans was impacted by the modifications as follows, presented by class ($ in thousands):

 
For the Three Months Ended June 30,
 
2012
 
2011
 
Number
of Loans
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
 
Number
of Loans
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
Senior mortgages
1

 
$
4,561

 
$
4,561

 
1

 
$
20,380

 
$
20,380


 
For the Six Months Ended June 30,
 
2012
 
2011
 
Number
of Loans
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
 
Number
of Loans
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
Senior mortgages
6

 
$
310,342

 
$
264,868

 
4

 
$
126,051

 
$
125,786
Schedule of troubled debt restructurings that subsequently defaulted
Troubled debt restructurings that subsequently defaulted during the period were as follows ($ in thousands):
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
 
Number
of Loans
 
Outstanding
Recorded
Investment
 
Number
of Loans
 
Outstanding
Recorded
Investment
 
Number
of Loans
 
Outstanding
Recorded
Investment
 
Number
of Loans
 
Outstanding
Recorded
Investment
Senior mortgages
1

 
$
26,120

 
1

 
$
28,328

 
1

 
$
26,120

 
1

 
$
28,328