Composition of Bank Loans and Delinquency Analysis by Loan Segment |
The composition of bank loans and delinquency analysis by portfolio segment and class of financing receivable is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2020 | | Current | | 30-59 days past due | | 60-89 days past due | | >90 days past due and other nonaccrual loans (3) | | Total past due and other nonaccrual loans | | Total loans | | Allowance for credit losses | | Total bank loans – net | Residential real estate: | | | | | | | | | | | | | | | | | First Mortgages (1,2) | | $ | 14,294 | | | $ | 19 | | | $ | 1 | | | $ | 26 | | | $ | 46 | | | $ | 14,340 | | | $ | 21 | | | $ | 14,319 | | HELOCs (1,2) | | 898 | | | 1 | | | — | | | 15 | | | 16 | | | 914 | | | 6 | | | 908 | | Total residential real estate | | 15,192 | | | 20 | | | 1 | | | 41 | | | 62 | | | 15,254 | | | 27 | | | 15,227 | | Pledged asset lines | | 6,875 | | | 4 | | | 6 | | | — | | | 10 | | | 6,885 | | | — | | | 6,885 | | Other | | 176 | | | — | | | — | | | 1 | | | 1 | | | 177 | | | 3 | | | 174 | | Total bank loans | | $ | 22,243 | | | $ | 24 | | | $ | 7 | | | $ | 42 | | | $ | 73 | | | $ | 22,316 | | | $ | 30 | | | $ | 22,286 | | December 31, 2019 | | | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | | | First Mortgages (1,2) | | $ | 11,665 | | | $ | 24 | | | $ | 4 | | | $ | 11 | | | $ | 39 | | | $ | 11,704 | | | $ | 11 | | | $ | 11,693 | | HELOCs (1,2) | | 1,105 | | | 2 | | | 1 | | | 9 | | | 12 | | | 1,117 | | | 4 | | | 1,113 | | Total residential real estate | | 12,770 | | | 26 | | | 5 | | | 20 | | | 51 | | | 12,821 | | | 15 | | | 12,806 | | Pledged asset lines | | 5,202 | | | 4 | | | — | | | — | | | 4 | | | 5,206 | | | — | | | 5,206 | | Other | | 201 | | | — | | | — | | | 2 | | | 2 | | | 203 | | | 3 | | | 200 | | Total bank loans | | $ | 18,173 | | | $ | 30 | | | $ | 5 | | | $ | 22 | | | $ | 57 | | | $ | 18,230 | | | $ | 18 | | | $ | 18,212 | |
(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $75 million and $74 million at September 30, 2020 and December 31, 2019, respectively. (2) At September 30, 2020 and December 31, 2019, 45% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. (3) There were no loans accruing interest that were contractually 90 days or more past due at September 30, 2020 or December 31, 2019.
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Credit Quality Indicators of Bank Loan Portfolio |
The credit quality indicators of the Company’s bank loan portfolio are detailed below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | First Mortgages Amortized Cost Basis by Origination Year | | | | | September 30, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | pre-2016 | Total First Mortgages | Revolving HELOCs amortized cost basis | HELOCs converted to term loans | Total HELOCs | Origination FICO | | | | | | | | | | | <620 | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 2 | | $ | 2 | | $ | — | | $ | — | | $ | — | | 620 – 679 | 22 | | 14 | | 4 | | 11 | | 17 | | 17 | | 85 | | 1 | | 3 | | 4 | | 680 – 739 | 626 | | 405 | | 132 | | 214 | | 200 | | 287 | | 1,864 | | 91 | | 88 | | 179 | | ≥740 | 5,443 | | 2,837 | | 582 | | 1,058 | | 1,249 | | 1,220 | | 12,389 | | 406 | | 325 | | 731 | | Total | $ | 6,091 | | $ | 3,256 | | $ | 718 | | $ | 1,283 | | $ | 1,466 | | $ | 1,526 | | $ | 14,340 | | $ | 498 | | $ | 416 | | $ | 914 | | Origination LTV | | | | | | | | | | | ≤70% | $ | 5,064 | | $ | 2,552 | | $ | 506 | | $ | 967 | | $ | 1,243 | | $ | 1,081 | | $ | 11,413 | | $ | 368 | | $ | 294 | | $ | 662 | | >70% – ≤90% | 1,027 | | 704 | | 212 | | 316 | | 223 | | 442 | | 2,924 | | 130 | | 118 | | 248 | | >90% – ≤100% | — | | — | | — | | — | | — | | 3 | | 3 | | — | | 4 | | 4 | | Total | $ | 6,091 | | $ | 3,256 | | $ | 718 | | $ | 1,283 | | $ | 1,466 | | $ | 1,526 | | $ | 14,340 | | $ | 498 | | $ | 416 | | $ | 914 | | Weighted Average Updated FICO | | | | | | | | | | | <620 | $ | 6 | | $ | 4 | | $ | 2 | | $ | 3 | | $ | 1 | | $ | 18 | | $ | 34 | | $ | 3 | | $ | 11 | | $ | 14 | | 620 – 679 | 47 | | 37 | | 18 | | 24 | | 20 | | 38 | | 184 | | 15 | | 22 | | 37 | | 680 – 739 | 514 | | 300 | | 92 | | 148 | | 129 | | 196 | | 1,379 | | 65 | | 61 | | 126 | | ≥740 | 5,524 | | 2,915 | | 606 | | 1,108 | | 1,316 | | 1,274 | | 12,743 | | 415 | | 322 | | 737 | | Total | $ | 6,091 | | $ | 3,256 | | $ | 718 | | $ | 1,283 | | $ | 1,466 | | $ | 1,526 | | $ | 14,340 | | $ | 498 | | $ | 416 | | $ | 914 | | Estimated Current LTV (1) | | | | | | | | | | | ≤70% | $ | 5,198 | | $ | 2,802 | | $ | 650 | | $ | 1,251 | | $ | 1,457 | | $ | 1,512 | | $ | 12,870 | | $ | 478 | | $ | 400 | | $ | 878 | | >70% – ≤90% | 893 | | 454 | | 68 | | 32 | | 9 | | 13 | | 1,469 | | 20 | | 13 | | 33 | | >90% – ≤100% | — | | — | | — | | — | | — | | — | | — | | — | | 2 | | 2 | | >100% | — | | — | | — | | — | | — | | 1 | | 1 | | — | | 1 | | 1 | | Total | $ | 6,091 | | $ | 3,256 | | $ | 718 | | $ | 1,283 | | $ | 1,466 | | $ | 1,526 | | $ | 14,340 | | $ | 498 | | $ | 416 | | $ | 914 | | Percent of Loans on Nonaccrual Status | 0.09 | % | 0.05 | % | 0.01 | % | 0.15 | % | 0.17 | % | 0.99 | % | 0.18 | % | 0.63 | % | 2.74 | % | 1.64 | % |
(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.
| | | | | | | | | | | | | | | | | | | | | September 30, 2020 | | Balance | | Weighted Average Updated FICO | | Percent of Loans on Nonaccrual Status | Pledged Asset Lines | | | | | | | Weighted-Average LTV (1) | | | | | | | =70% | | $ | 6,885 | | | 772 | | | — | |
(1) Represents the LTV for the full line of credit (drawn and undrawn). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | First Mortgages Amortized Cost Basis by Origination Year | | | | | December 31, 2019 | 2019 | 2018 | 2017 | 2016 | pre-2016 | Total First Mortgages | Revolving HELOCs amortized cost basis | HELOCs converted to term loans | Total HELOCs | Origination FICO | | | | | | | | | | <620 | $ | — | | $ | — | | $ | — | | $ | — | | $ | 3 | | $ | 3 | | $ | — | | $ | — | | $ | — | | 620 – 679 | 12 | | 6 | | 14 | | 20 | | 25 | | 77 | | 1 | | 4 | | 5 | | 680 – 739 | 478 | | 220 | | 304 | | 290 | | 421 | | 1,713 | | 114 | | 105 | | 219 | | ≥740 | 3,512 | | 1,058 | | 1,593 | | 1,839 | | 1,909 | | 9,911 | | 496 | | 397 | | 893 | | Total | $ | 4,002 | | $ | 1,284 | | $ | 1,911 | | $ | 2,149 | | $ | 2,358 | | $ | 11,704 | | $ | 611 | | $ | 506 | | $ | 1,117 | | Origination LTV | | | | | | | | | | ≤70% | $ | 3,104 | | $ | 906 | | $ | 1,427 | | $ | 1,812 | | $ | 1,679 | | $ | 8,928 | | $ | 444 | | $ | 354 | | $ | 798 | | >70% – ≤90% | 898 | | 378 | | 484 | | 337 | | 676 | | 2,773 | | 167 | | 147 | | 314 | | >90% – ≤100% | — | | — | | — | | — | | 3 | | 3 | | — | | 5 | | 5 | | Total | $ | 4,002 | | $ | 1,284 | | $ | 1,911 | | $ | 2,149 | | $ | 2,358 | | $ | 11,704 | | $ | 611 | | $ | 506 | | $ | 1,117 | | Weighted Average Updated FICO | | | | | | | | | | <620 | $ | 5 | | $ | 4 | | $ | 5 | | $ | 3 | | $ | 25 | | $ | 42 | | $ | 6 | | $ | 15 | | $ | 21 | | 620 – 679 | 45 | | 36 | | 32 | | 26 | | 68 | | 207 | | 18 | | 22 | | 40 | | 680 – 739 | 474 | | 153 | | 213 | | 199 | | 307 | | 1,346 | | 92 | | 80 | | 172 | | ≥740 | 3,478 | | 1,091 | | 1,661 | | 1,921 | | 1,958 | | 10,109 | | 495 | | 389 | | 884 | | Total | $ | 4,002 | | $ | 1,284 | | $ | 1,911 | | $ | 2,149 | | $ | 2,358 | | $ | 11,704 | | $ | 611 | | $ | 506 | | $ | 1,117 | | Estimated Current LTV (1) | | | | | | | | | | ≤70% | $ | 3,125 | | $ | 1,018 | | $ | 1,790 | | $ | 2,119 | | $ | 2,330 | | $ | 10,382 | | $ | 578 | | $ | 478 | | $ | 1,056 | | >70% – ≤90% | 877 | | 265 | | 121 | | 30 | | 27 | | 1,320 | | 33 | | 23 | | 56 | | >90% – ≤100% | — | | 1 | | — | | — | | 1 | | 2 | | — | | 3 | | 3 | | >100% | — | | — | | — | | — | | — | | — | | — | | 2 | | 2 | | Total | $ | 4,002 | | $ | 1,284 | | $ | 1,911 | | $ | 2,149 | | $ | 2,358 | | $ | 11,704 | | $ | 611 | | $ | 506 | | $ | 1,117 | | Percent of Loans on Nonaccrual Status | 0.04 | % | 0.04 | % | 0.04 | % | 0.08 | % | 0.25 | % | 0.09 | % | 0.19 | % | 1.57 | % | 0.83 | % |
(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs. | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | Balance | | Weighted Average Updated FICO | | Percent of Loans on Nonaccrual Status | Pledged Asset Lines | | | | | | | Weighted-Average LTV (1) | | | | | | | =70% | | $ | 5,206 | | | 766 | | | — | |
(1) Represents the LTV for the full line of credit (drawn and undrawn).
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