Prudential 2012 Annual Report Download - page 138

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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
(1) Recorded investment reflects the balance sheet carrying value gross of related allowance.
(2) Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
(3) The interest income recognized is for the year-to-date income regardless of when the impairments occurred.
(4) Includes the impact of loans acquired from the Star Business for which the balance sheet carrying value had been previously written down.
The net carrying value of commercial and other loans held for sale by the Company as of December 31, 2012 and 2011, was $114
million and $514 million, respectively. In all these transactions, the Company pre-arranges that it will sell the loan to an investor. As of
December 31, 2012 and 2011, all of the Company’s commercial and other loans held for sale were collateralized, with collateral primarily
consisting of office buildings, retail properties, apartment complexes and industrial buildings.
The following tables set forth the credit quality indicators as of December 31, 2012, based upon the recorded investment gross of
allowance for credit losses.
Commercial mortgage loans
Debt Service Coverage Ratio—December 31, 2012
Greater than
1.2X 1.0X to <1.2X
Less than
1.0X Total
(in millions)
Loan-to-Value Ratio
0%—59.99% .................................................... $15,089 $ 487 $ 188 $15,764
60%—69.99% ................................................... 9,263 801 36 10,100
70%—79.99% ................................................... 3,689 776 217 4,682
Greater than 80% ................................................. 219 770 579 1,568
Total commercial mortgage loans .................................... $28,260 $2,834 $1,020 $32,114
Agricultural property loans
Debt Service Coverage Ratio—December 31, 2012
Greater than
1.2X 1.0X to <1.2X
Less than
1.0X Total
(in millions)
Loan-to-Value Ratio
0%—59.99% ..................................................... $1,635 $186 $44 $1,865
60%—69.99% .................................................... 213 0 0 213
70%—79.99% .................................................... 0 0 0 0
Greater than 80% .................................................. 0 0 44 44
Total agricultural property loans ...................................... $1,848 $186 $88 $2,122
Total commercial and agricultural mortgage loans
Debt Service Coverage Ratio—December 31, 2012
Greater than
1.2X 1.0X to <1.2X
Less than
1.0X Total
(in millions)
Loan-to-Value Ratio
0%—59.99% .................................................... $16,724 $ 673 $ 232 $17,629
60%—69.99% ................................................... 9,476 801 36 10,313
70%—79.99% ................................................... 3,689 776 217 4,682
Greater than 80% ................................................. 219 770 623 1,612
Total commercial and agricultural mortgage loans ................... $30,108 $3,020 $1,108 $34,236
136 Prudential Financial, Inc. 2012 Annual Report