Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2012

Loans Receivable

Loans receivable

Schedule of loans receivable

	June 30,		December 31,
	2012		2011
	(Dollars in thousands)
Domestic:
Commercial loans:
Affiliates	$	6,757	$	6,719
SBA, net of allowance for loan losses of $425 and $333, respectively	25,034		26,765
Other, net of allowance for loan losses of $1,083	7,545		12,212
Total loans, net	$	39,336	$	45,696

SBA Held for Sale

Loans receivable

Schedule of loans receivable

	June 30,		December 31,
	2012		2011
	(Dollars in thousands)
Outstanding balance	$	4,747	$	7,483
Capitalized costs, net of fees	61		131
Carrying amount of loans, net	$	4,808	$	7,614

Schedule of changes in loans receivable

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
	(Dollars in thousands)
Beginning Balance	$	3,260		$	7,769		$	7,614		$	11,608
Originations and advances of loans	4,929			4,933			7,754			10,872
Payments received	(18		)	(36		)	(39		)	(63		)
Capitalized costs, net	13			(76		)	(69		)	(125		)
Loans sold and transferred	(3,376		)	(7,518		)	(10,452		)	(17,220		)
Ending Balance	$	4,808		$	5,072		$	4,808		$	5,072

Loans Held for Investment

Loans receivable

Schedule of activity in the allowance for loan losses by portfolio of loans held for investment

	Allowance for Loan Losses:
(Dollars in thousands)	SBA held for investment			Affiliates		Other		Total
Balance, April 1, 2012	$	441		$	—	$	1,083	$	1,524
Provisions	132			—		—		132
Recoveries	(3		)	—		—		(3		)
Charge-offs	(145		)	—		—		(145		)
Balance, June 30, 2012	$	425		$	—	$	1,083	$	1,508
Balance, April 1, 2011	$	423		$	—	$	1,083	$	1,506
Provisions	32			—		—		32
Recoveries	(31		)	—		—		(31		)
Charge-offs	(27		)	—		—		(27		)
Balance, June 30, 2011	$	397		$	—	$	1,083	$	1,480

	Allowance for Loan Losses:
(Dollars in thousands)	SBA held for investment			Affiliates		Other		Total
Balance, January 1, 2012	$	333		$	—	$	1,083	$	1,416
Provisions	383			—		—		383
Recoveries	(8		)	—		—		(8		)
Charge-offs	(283		)	—		—		(283		)
Balance, June 30, 2012	$	425		$	—	$	1,083	$	1,508
Balance, January 1, 2011	$	365		$	—	$	1,083	$	1,448
Provisions	185			—		—		185
Recoveries	(40		)	—		—		(40		)
Charge-offs	(113		)	—		—		(113		)
Balance, June 30, 2011	$	397		$	—	$	1,083	$	1,480

Analysis of the allowance for loan losses and recorded investment

	Commercial Loans:
(Dollars in thousands)	SBA		Affiliates		Other		Total
June 30, 2012:
Loans individually evaluated for impairment	$	606	$	6,757	$	8,628	$	15,991
Loans collectively evaluated for impairment	20,045		—		—		20,045
Total loans evaluated for impairment (excluding loans held for sale)	$	20,651	$	6,757	$	8,628	$	36,036
Allowance for loans individually evaluated for impairment	$	235	$	—	$	1,083	$	1,318
Allowance for loans collectively evaluated for impairment	190		—		—		190
Total allowance for loan losses	$	425	$	—	$	1,083	$	1,508
December 31, 2011:
Loans individually evaluated for impairment	$	404	$	6,719	$	13,295	$	20,418
Loans collectively evaluated for impairment	19,080		—		—		19,080
Total loans evaluated for impairment (excluding loans held for sale)	$	19,484	$	6,719	$	13,295	$	39,498
Allowance for loans individually evaluated for impairment	$	308	$	—	$	1,083	$	1,391
Allowance for loans collectively evaluated for impairment	25		—		—		25
Total allowance for loan losses	$	333	$	—	$	1,083	$	1,416

Schedule of recorded investment in loans (excluding loans held for sale) by credit quality indicator

			Special
(Dollars in thousands)	Pass		Mention		Substandard		Doubtful		Total
June 30, 2012:
SBA - commercial loans	$	15,361	$	4,515	$	453	$	322	$	20,651

	Accrual		Non-Accrual		Total
Affiliates - commercial loans	$	6,757	$	—	$	6,757
Other - commercial loans	2,752		5,876		8,628
	$	9,509	$	5,876	$	15,385
Total loans (excluding loans held for sale)					$	36,036

			Special
	Pass		Mention		Substandard		Doubtful		Total
December 31, 2011:
SBA - commercial loans	$	15,325	$	3,648	$	107	$	404	$	19,484

	Accrual		Non-Accrual		Total
Affiliates - commercial loans	$	6,719	$	—	$	6,719
Other - commercial loans	4,398		8,897		13,295
	$	11,117	$	8,897	$	20,014
Total loans (excluding loans held for sale)					$	39,498

Schedule of aging analysis of recorded investment in loans held for investment

	Loans Past Due and Still Accruing
	31-60		61-90		Over				Non-Accrual		Current		Total
(Dollars in thousands)	Days		Days		90 Days		Total		Loans		Loans		Loans
June 30, 2012:
Commercial loans:
SBA	$	—	$	—	$	—	$	—	$	606	$	20,045	$	20,651
Affiliates	—		—			3,261	3,261		—		3,496		6,757
Other	—		—			—	—		5,876		2,752		8,628
Total loans (excluding loans held for sale)	$	—	$	—	$	3,261	$	3,261	$	6,482	$	26,293	$	36,036
December 31, 2011:
Commercial loans:
SBA	$	—	$	—	$	—	$	—	$	404	$	19,080	$	19,484
Affiliates	—		—			—	—		—		6,719		6,719
Other	—		—			—	—		8,897		4,398		13,295
Total loans (excluding loans held for sale)	$	—	$	—	$	—	$	—	$	9,301	$	30,197	$	39,498

Schedule of additional information regarding impaired loans

	Recorded Investment In:
	Impaired		Impaired
	Loans		Loans								Average		Average
	Without a		With a		Total		Unpaid		Related		Impaired		Impaired
	Related		Related		Impaired		Principal		Valuation		Loans for		Loans for
(Dollars in thousands)	Allowance		Allowance		Loans		Balance		Allowance		the Period		the Quarter
June 30, 2012:
Commercial loans:
SBA	$	—	$	606	$	606	$	635	$	235	$	709	$	622
Affiliates	—		—		—		—		—		—		—
Other	2,906		2,970		5,876		7,599		1,083		8,305		7,919
Total loans (excluding loans held for sale)	$	2,906	$	3,576	$	6,482	$	8,234	$	1,318	$	9,014	$	8,541
December 31, 2011:
Commercial loans:
SBA	$	—	$	404	$	404	$	425	$	308	$	652
Affiliates	—		—		—		—		—		—
Other	5,897		3,000		8,897		10,569		1,083		9,648
Total loans (excluding loans held for sale)	$	5,897	$	3,404	$	9,301	$	10,994	$	1,391	$	10,300

Affiliates

Loans receivable

Schedule of loans receivable

	June 30,			December 31,
	2012			2011
	(Dollars in thousands)
Outstanding balance	$	6,391		$	6,518
Discounts, net	(15		)	(59		)
Capitalized interest	381			260
Carrying amount of loans, net	$	6,757		$	6,719

Schedule of changes in loans receivable

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012		2011			2012			2011
	(Dollars in thousands)
Beginning Balance	$	6,677	$	15,636		$	6,719		$	16,781
Advances	—		—			—			700
Payments received	—		(287		)	(128		)	(717		)
Capitalized costs, net	58		140			122			8
Discount accretion, net	22		22			44			44
Loan transfer (1)	—		—			—			(1,402		)
Other noncash adjustments	—		(492		)	—			(492		)
Foreign exchange gains	—		10			—			107
Ending Balance	$	6,757	$	15,029		$	6,757		$	15,029

(1)Represents the sale and transfer of a loan to an affiliated entity as partial consideration for the repayment of a note payable to that affiliated entity.

SBA Held for Investment, net

Loans receivable

Schedule of loans receivable

	June 30,			December 31,
	2012			2011
	(Dollars in thousands)
Outstanding balance	$	21,758		$	20,503
Allowance for loan losses	(425		)	(333		)
Discounts, net	(1,447		)	(1,292		)
Capitalized costs	340			273
Carrying amount of loans, net	$	20,226		$	19,151

Schedule of changes in loans receivable

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
	(Dollars in thousands)
Beginning Balance	$	19,389		$	15,574		$	19,151		$	15,415
Purchases of loans	—			696			—			696
Originations and advances of loans	1,643			1,368			2,585			2,048
Payments received	(675		)	(303		)	(1,033		)	(636		)
Capitalized costs	30			26			67			50
Change in allowance for loan losses	16			26			(92		)	(32		)
Discount accretion, net	(33		)	(82		)	(171		)	(150		)
Charge-offs	(144		)	(27		)	(281		)	(113		)
Ending Balance	$	20,226		$	17,278		$	20,226		$	17,278

Other

Loans receivable

Schedule of loans receivable

	June 30,			December 31,
	2012			2011
	(Dollars in thousands)
Outstanding balance	$	8,874		$	13,541
Allowance for loan losses	(1,083		)	(1,083		)
Capitalized interest and costs	(246		)	(246		)
Carrying amount of loans, net	$	7,545		$	12,212

Schedule of changes in loans receivable

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
	(Dollars in thousands)
Beginning Balance	$	10,129		$	13,003		$	12,212		$	13,011
Advances	350			1,040			729			1,719
Payments received	(434		)	(1,306		)	(2,896		)	(2,054		)
Noncash consideration (1)	(2,500		)	—			(2,500		)	—
Capitalized interest and costs	—			—			—			50
Discount accretion, net	—			4			—			15
Ending Balance	$	7,545		$	12,741		$	7,545		$	12,741

(1)Represents a principal reduction on a loan receivable upon FirstCity’s acquisition of certain underlying loan collateral from the borrower as partial consideration for repayment. See Note 3 for additional information.