Finance Receivables, Credit Quality Information, and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2019

Finance Receivables, Credit Quality Information, and Allowance for Credit Losses

Note 3. Finance Receivables, Credit Quality Information, and Allowance for Credit Losses

Finance receivables for the periods indicated consisted of the following:

In thousands	June 30, 2019		December 31, 2018
Small loans	$	431,214	$	437,662
Large loans		498,757		437,998
Automobile loans		15,686		26,154
Retail loans		27,777		30,429
Finance receivables	$	973,434	$	932,243

The contractual delinquency of the finance receivable portfolio by product and aging for the periods indicated are as follows:

	June 30, 2019
	Small					Large					Automobile					Retail					Total
In thousands	$		%			$		%			$		%			$		%			$		%
Current	$	347,335		80.6	%	$	425,496		85.3	%	$	11,168		71.2	%	$	21,216		76.3	%	$	805,215		82.7	%
1 to 29 days past due		50,603		11.7	%		47,814		9.6	%		3,224		20.6	%		4,376		15.8	%		106,017		10.9	%
Delinquent accounts
30 to 59 days		11,270		2.5	%		9,424		1.8	%		565		3.5	%		823		3.0	%		22,082		2.3	%
60 to 89 days		7,430		1.7	%		5,781		1.2	%		279		1.8	%		471		1.7	%		13,961		1.4	%
90 to 119 days		5,391		1.3	%		4,089		0.9	%		145		1.0	%		337		1.2	%		9,962		1.1	%
120 to 149 days		4,554		1.1	%		3,105		0.6	%		163		1.0	%		267		1.0	%		8,089		0.8	%
150 to 179 days		4,631		1.1	%		3,048		0.6	%		142		0.9	%		287		1.0	%		8,108		0.8	%
Total delinquency	$	33,276		7.7	%	$	25,447		5.1	%	$	1,294		8.2	%	$	2,185		7.9	%	$	62,202		6.4	%
Total finance receivables	$	431,214		100.0	%	$	498,757		100.0	%	$	15,686		100.0	%	$	27,777		100.0	%	$	973,434		100.0	%
Finance receivables in nonaccrual status	$	16,168		3.7	%	$	11,849		2.4	%	$	713		4.5	%	$	1,007		3.6	%	$	29,737		3.1	%

	December 31, 2018
	Small					Large					Automobile					Retail					Total
In thousands	$		%			$		%			$		%			$		%			$		%
Current	$	347,053		79.3	%	$	365,950		83.6	%	$	17,767		67.9	%	$	23,392		76.9	%	$	754,162		80.9	%
1 to 29 days past due		49,946		11.4	%		45,234		10.3	%		6,304		24.1	%		4,436		14.6	%		105,920		11.4	%
Delinquent accounts
30 to 59 days		12,168		2.8	%		8,768		2.0	%		751		2.9	%		842		2.7	%		22,529		2.3	%
60 to 89 days		9,555		2.2	%		6,779		1.5	%		421		1.6	%		627		2.1	%		17,382		1.9	%
90 to 119 days		7,202		1.6	%		4,407		1.0	%		241		0.9	%		429		1.4	%		12,279		1.3	%
120 to 149 days		6,266		1.4	%		3,823		0.9	%		434		1.7	%		367		1.2	%		10,890		1.2	%
150 to 179 days		5,472		1.3	%		3,037		0.7	%		236		0.9	%		336		1.1	%		9,081		1.0	%
Total delinquency	$	40,663		9.3	%	$	26,814		6.1	%	$	2,083		8.0	%	$	2,601		8.5	%	$	72,161		7.7	%
Total finance receivables	$	437,662		100.0	%	$	437,998		100.0	%	$	26,154		100.0	%	$	30,429		100.0	%	$	932,243		100.0	%
Finance receivables in nonaccrual status	$	22,549		5.2	%	$	14,379		3.3	%	$	1,359		5.2	%	$	1,276		4.2	%	$	39,563		4.2	%

Changes in the allowance for credit losses for the periods indicated are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
In thousands	2019			2018			2019			2018
Balance at beginning of period	$	56,400		$	47,750		$	58,300		$	48,910
Provision for credit losses		25,714			20,203			49,057			39,718
Credit losses		(26,001	)		(20,666	)		(52,378	)		(42,686	)
Recoveries		1,087			1,163			2,221			2,508
Balance at end of period	$	57,200		$	48,450		$	57,200		$	48,450

In September 2018, the Company recorded a $3.9

million increase to the allowance for credit losses related to estimated incremental credit losses on customer accounts impacted by hurricanes. As of June 30, 2019, the allowance for credit losses no longer requires or includes an incremental hurricane allowance.

The following is a reconciliation of the allowance for credit losses by product for the periods indicated:

In thousands	Balance April 1, 2019		Provision		Credit Losses			Recoveries		Balance June 30, 2019		Finance Receivables June 30, 2019		Allowance as Percentage of Finance Receivables June 30, 2019
Small loans	$	29,793	$	13,736	$	(14,993	)	$	598	$	29,134	$	431,214		6.8	%
Large loans		23,217		10,989		(9,550	)		398		25,054		498,757		5.0	%
Automobile loans		1,470		131		(566	)		58		1,093		15,686		7.0	%
Retail loans		1,920		858		(892	)		33		1,919		27,777		6.9	%
Total	$	56,400	$	25,714	$	(26,001	)	$	1,087	$	57,200	$	973,434		5.9	%

In thousands	Balance April 1, 2018		Provision		Credit Losses			Recoveries		Balance June 30, 2018		Finance Receivables June 30, 2018		Allowance as Percentage of Finance Receivables June 30, 2018
Small loans	$	23,366	$	12,720	$	(12,782	)	$	665	$	23,969	$	384,690		6.2	%
Large loans		18,589		6,784		(6,002	)		327		19,698		392,101		5.0	%
Automobile loans		3,316		64		(873	)		135		2,642		39,414		6.7	%
Retail loans		2,479		635		(1,009	)		36		2,141		31,033		6.9	%
Total	$	47,750	$	20,203	$	(20,666	)	$	1,163	$	48,450	$	847,238		5.7	%

In thousands	Balance January 1, 2019		Provision		Credit Losses			Recoveries		Balance June 30, 2019		Finance Receivables June 30, 2019		Allowance as Percentage of Finance Receivables June 30, 2019
Small loans	$	30,759	$	27,691	$	(30,481	)	$	1,165	$	29,134	$	431,214		6.8	%
Large loans		23,702		19,440		(18,887	)		799		25,054		498,757		5.0	%
Automobile loans		1,893		240		(1,218	)		178		1,093		15,686		7.0	%
Retail loans		1,946		1,686		(1,792	)		79		1,919		27,777		6.9	%
Total	$	58,300	$	49,057	$	(52,378	)	$	2,221	$	57,200	$	973,434		5.9	%

In thousands	Balance January 1, 2018		Provision		Credit Losses			Recoveries		Balance June 30, 2018		Finance Receivables June 30, 2018		Allowance as Percentage of Finance Receivables June 30, 2018
Small loans	$	24,749	$	24,003	$	(26,156	)	$	1,373	$	23,969	$	384,690		6.2	%
Large loans		17,548		13,663		(12,198	)		685		19,698		392,101		5.0	%
Automobile loans		4,025		585		(2,340	)		372		2,642		39,414		6.7	%
Retail loans		2,588		1,467		(1,992	)		78		2,141		31,033		6.9	%
Total	$	48,910	$	39,718	$	(42,686	)	$	2,508	$	48,450	$	847,238		5.7	%

Impaired finance receivables as a percentage of total finance receivables were

3.0

% and 2.9% as of June 30, 2019 and December 31, 2018, respectively

The following is a summary of finance receivables evaluated for impairment for the periods indicated:

	June 30, 2019
In thousands	Small		Large		Automobile		Retail		Total
Impaired receivables specifically evaluated	$	9,839	$	18,849	$	799	$	133	$	29,620
Finance receivables evaluated collectively		421,375		479,908		14,887		27,644		943,814
Finance receivables outstanding	$	431,214	$	498,757	$	15,686	$	27,777	$	973,434
Impaired receivables in nonaccrual status	$	1,073	$	2,187	$	152	$	44	$	3,456
Amount of the specific reserve for impaired accounts	$	4,135	$	7,089	$	380	$	72	$	11,676
Amount of the general component of the allowance	$	24,999	$	17,965	$	713	$	1,847	$	45,524


	December 31, 2018
In thousands	Small		Large		Automobile		Retail		Total
Impaired receivables specifically evaluated	$	8,361	$	17,196	$	918	$	110	$	26,585
Finance receivables evaluated collectively		429,301		420,802		25,236		30,319		905,658
Finance receivables outstanding	$	437,662	$	437,998	$	26,154	$	30,429	$	932,243
Impaired receivables in nonaccrual status	$	1,209	$	2,292	$	178	$	37	$	3,716
Amount of the specific reserve for impaired accounts	$	3,791	$	6,860	$	492	$	61	$	11,204
Amount of the general component of the allowance	$	26,968	$	16,842	$	1,401	$	1,885	$	47,096

The average recorded investment in impaired finance receivables and the amount of interest income recognized on impaired loans for the periods indicated are as follows:

	Three Months Ended June 30,
	2019				2018
In thousands	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Small loans	$	9,813	$	437	$	6,272	$	248
Large loans		18,584		667		12,318		383
Automobile loans		803		9		1,512		11
Retail loans		134		1		105		1
Total	$	29,334	$	1,114	$	20,207	$	643

	Six Months Ended June 30,
	2019				2018
In thousands	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Small loans	$	9,336	$	684	$	5,868	$	499
Large loans		18,011		1,081		11,693		754
Automobile loans		829		17		1,589		52
Retail loans		127		1		101		5
Total	$	28,303	$	1,783	$	19,251	$	1,310