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LENDING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2013
LENDING ACTIVITIES  
Composition of Mortgages and other loans receivable

 

 

 
  


   
  
   
(in millions)
  

December 31, 2013

   December 31, 2012
  
   

Commercial mortgages*

  
$
16,195
 
 $ 13,788  

Life insurance policy loans

  
 
2,830
 
   2,952  

Commercial loans, other loans and notes receivable

  
 
2,052
 
   3,147
   

Total mortgage and other loans receivable

  
 
21,077
 
   19,887  

Allowance for losses

  
 
(312
)
   (405 )
   

Mortgage and other loans receivable, net

  
$
20,765
 
 $ 19,482
   

*     Commercial mortgages primarily represent loans for office, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (18 percent and 17 percent, respectively, at December 31, 2013 and 22 percent and 15 percent, respectively, at December 31, 2012).
Schedule of credit quality indicators for the commercial mortgage loans

 

 

   
 
   Number
of
Loans
   Class    
    
  
December 31, 2013
(dollars in millions)
    
   Percent
of Total $
  
  Apartments
   Offices
   Retail
   Industrial
   Hotel
   Others
   Total(c)
  
   

Credit Quality Indicator:

                                                        

In good standing

     978   $ 2,786   $ 4,636   $ 3,364   $ 1,607   $ 1,431   $ 1,970   $ 15,794     98 %

Restructured(a)

     9     53     210     6     –     –     85     354     2  

90 days or less delinquent

     2     –     –     5     –     –     –     5     –  

>90 days delinquent or in process of foreclosure

     6     –     42     –     –     –     –     42     –
   

Total(b)

     995   $ 2,839   $ 4,888   $ 3,375   $ 1,607   $ 1,431   $ 2,055   $ 16,195     100 %
   

Allowance for losses

         $ 10   $ 109   $ 9   $ 19   $ 3   $ 51   $ 201     1 %
   

December 31, 2012

                                                        

(dollars in millions)

                                                      
   

Credit Quality Indicator:

                                                        

In good standing

     998   $ 1,549   $ 4,698   $ 2,640   $ 1,654   $ 1,153   $ 1,671   $ 13,365     97 %

Restructured(a)

     8     50     207     7     2     –     22     288     2  

90 days or less delinquent

     4     –     17     –     –     –     –     17     –  

>90 days delinquent or in process of foreclosure

     6     –     13     26     –     –     79     118     1
   

Total(b)

     1,016   $ 1,599   $ 4,935   $ 2,673   $ 1,656   $ 1,153   $ 1,772   $ 13,788     100 %
   

Allowance for losses

         $ 5   $ 74   $ 19   $ 19   $ 1   $ 41   $ 159     1 %
   

(a)  Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below.

(b)  Does not reflect allowance for losses.

(c)  Approximately 99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest.
Schedule of changes in the allowance for losses on Mortgage and other loans receivable

 

 

 
  


   
    
    
    
    
    
  
   
 
   2013   2012   2011  
Years Ended December 31,
(in millions)
  

Commercial
Mortgages

  

Other
Loans

  

Total

   Commercial
Mortgages
   Other
Loans
   Total
   Commercial
Mortgages
   Other
Loans
   Total
  
   

Allowance, beginning of year

  
$
159
 
$
246
 
$
405
 
 $ 305   $ 435   $ 740   $ 470   $ 408   $ 878  

Loans charged off

  
 
(12
)
 
(104
)
 
(116
)
   (23 )   (21 )   (44 )   (78 )   (47 )   (125 )

Recoveries of loans previously charged off

  
 
3
 
 
6
 
 
9
 
   13     4     17     37     1     38
   

Net charge-offs

  
 
(9
)
 
(98
)
 
(107
)
   (10 )   (17 )   (27 )   (41 )   (46 )   (87 )

Provision for loan losses

  
 
52
 
 
(32
)
 
20
 
   (136 )   33     (103 )   (69 )   51     (18 )

Other

  
 
(1
)
 
(5
)
 
(6
)
   –     –     –     (55 )   –     (55 )

Activity of discontinued operations

  
 
–
 
 
–
 
 
–
 
   –     (205 )   (205 )   –     22     22
   

Allowance, end of year

  
$
201*
 
$
111
 
$
312
 
 $ 159*   $ 246   $ 405   $ 305*   $ 435   $ 740
   

*     Of the total allowance at the end of the year, $93 million and $47 million relates to individually assessed credit losses on $264 million and $286 million of commercial mortgage loans as of December 31, 2013 and 2012, respectively.