Voya 2014 Annual Report Download - page 296

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
The following table presents information on the average investment during the period in impaired loans and
interest income recognized on impaired and troubled debt restructured loans for the periods indicated:
Year Ended December 31,
2014 2013 2012
Impaired loans, average investment during the period (amortized cost)(1) . . $83.6 $55.6 $32.7
Interest income recognized on impaired loans, on an accrual basis(1) ...... 4.8 2.9 0.7
Interest income recognized on impaired loans, on a cash basis(1) ......... 4.5 2.9 0.8
Interest income recognized on troubled debt restructured loans, on an
accrual basis ................................................ 4.2 2.4 0.3
(1) Includes amounts for Troubled debt restructured loans.
Loan-to-value (“LTV”) and debt service coverage (“DSC”) ratios are measures commonly used to assess the risk
and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of
the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates
the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received
financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service
payments. A DSC ratio of less than 1.0 indicates that property’s operations do not generate sufficient income to
cover debt payments. These ratios are utilized as part of the review process described above.
The following table presents the LTV ratios as of the dates indicated:
December 31, 2014(1) December 31, 2013(1)
Loan-to-Value Ratio:
0%-50% .................... $1,460.6 $1,782.6
>50% - 60% .................. 2,261.6 2,390.0
>60% - 70% .................. 5,514.8 4,668.3
>70% - 80% .................. 541.3 455.8
>80% and above ............... 18.6 19.3
Total Commercial mortgage loans ..... $9,796.9 $9,316.0
(1) Balances do not include collective valuation allowance for losses.
The following table presents the DSC ratios as of the dates indicated:
December 31, 2014(1) December 31, 2013(1)
Debt Service Coverage Ratio:
Greater than 1.5x .............. $7,096.2 $6,346.5
>1.25x - 1.5x .................. 1,392.1 1,520.9
>1.0x - 1.25x .................. 906.7 980.6
Less than 1.0x ................. 385.9 467.8
Commercial mortgage loans
secured by land or construction
loans ...................... 16.0 0.2
Total Commercial mortgage loans ..... $9,796.9 $9,316.0
273