Consumer Loans Receivable (Tables)

3 Months Ended

9 Months Ended

Apr. 01, 2017

Dec. 30, 2017

The following table summarizes consumer loans receivable (in thousands):



	December 30, 2017			April 1, 2017
Loans held for investment (acquired on Palm Harbor Acquisition Date)	$	54,013		$	60,513
Loans held for investment (originated after Palm Harbor Acquisition Date)	17,956			11,108
Loans held for sale	12,361			18,570
Construction advances	12,407			6,957
Consumer loans receivable	96,737			97,148
Deferred financing fees and other, net	(1,370		)	(1,095		)
Allowance for loan losses	(375		)	(252		)
Consumer loans receivable, net	$	94,992		$	95,801

Acquired Consumer Loans Receivable Held for Investment



	December 30, 2017			April 1, 2017
	(in thousands)
Consumer loans receivable held for investment – contractual amount	$	125,307		$	142,391
Purchase discount
Accretable	(48,268		)	(56,686		)
Non-accretable	(22,922		)	(25,032		)
Less consumer loans receivable reclassified as other assets	(104		)	(160		)
Total acquired consumer loans receivable held for investment, net	$	54,013		$	60,513

Accretable Yield Movement on Acquired Consumer Loans Receivable

The changes in accretable yield on acquired consumer loans receivable held for investment were as follows (in thousands):



	Three Months Ended						Nine Months Ended
	December 30, 2017			December 31, 2016			December 30, 2017			December 31, 2016
Balance at the beginning of the period	$	51,180		$	62,209		$	56,686		$	69,053
Accretion	(2,068		)	(2,399		)	(6,441		)	(7,363		)
Reclassifications to non-accretable discount	(844		)	(872		)	(1,977		)	(2,752		)
Balance at the end of the period	$	48,268		$	58,938		$	48,268		$	58,938

Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score



	April 1, 2017
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	705	$	411	$	393	$	—	$	—	$	1,509
620-719	11,681		8,072		5,406		—		697		25,856
720+	12,748		7,800		5,081		—		3,097		28,726
Other	51		—		433		—		—		484
Subtotal	25,185		16,283		11,313		—		3,794		56,575
Conforming mortgages
0-619	—		—		161		261		99		521
620-719	—		—		1,792		4,231		10,553		16,576
720+	—		—		247		2,465		4,124		6,836
Subtotal	—		—		2,200		6,957		14,776		23,933
Non-conforming mortgages
0-619	86		435		1,327		—		—		1,848
620-719	1,242		4,947		3,372		—		—		9,561
720+	1,527		2,909		484		—		—		4,920
Other	—		—		299		—		—		299
Subtotal	2,855		8,291		5,482		—		—		16,628
Other loans
Subtotal	—		—		12		—		—		12
	$	28,040	$	24,574	$	19,007	$	6,957	$	18,570	$	97,148

The following table disaggregates CountryPlace's gross consumer loans receivable for each class by portfolio segment and credit quality indicator as of the time of origination (in thousands):



	December 30, 2017
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	502	$	366	$	352	$	—	$	—	$	1,220
620-719	10,548		7,312		7,652		—		383		25,895
720+	11,104		6,792		9,286		—		1,743		28,925
Other	50		—		368		—		—		418
Subtotal	22,204		14,470		17,658		—		2,126		56,458
Conforming mortgages
0-619	—		—		158		41		—		199
620-719	—		—		1,891		6,396		7,192		15,479
720+	—		—		327		5,970		2,927		9,224
Other	—		—		—		—		116		116
Subtotal	—		—		2,376		12,407		10,235		25,018
Non-conforming mortgages
0-619	83		413		1,066		—		—		1,562
620-719	1,180		4,608		3,178		—		—		8,966
720+	1,475		2,562		399		—		—		4,436
Other	—		—		286		—		—		286
Subtotal	2,738		7,583		4,929		—		—		15,250
Other loans
Subtotal	—		—		11		—		—		11
	$	24,942	$	22,053	$	24,974	$	12,407	$	12,361	$	96,737

Loans and Leases Receivable, Other Information

ver the life of the acquired loans. As of the balance sheet date, the Company evaluates whether the present value of expected cash flows, determined using the effective interest rate, has decreased from the value at acquisition and, if so, recognizes an allowance for loan loss. The present value of any subsequent increase in the loan pool's actual cash flows expected to be collected is used first to reverse any existing allowance for loan loss. Any remaining increase in cash flows expected to be collected adjusts the amount of accretable yield recognized on a prospective basis over the loan pool's remaining life. The weighted averages of assumptions used in the calculation of expected cash flows to be collected are as follows:



	December 30, 2017		April 1, 2017
Prepayment rate	14.0	%	13.8	%
Default rate	1.2	%	1.1	%

Assuming there was a 1% unfavorable variation from the expected level, for each key assumption, the expected cash flows for the life of the portfolio, as of December 30, 2017, would decrease by approximately $1.4 million and $4.0 million for the expected prepayment rate and expected default rate, respectively.