NOTE 5 - FINANCING RECEIVABLES

The following table is the aging of the Company’s financing receivables (presented gross of allowance for credit losses) as of September 30, 2014 (in thousands):



	30-89 Days Past Due		90-180 Days Past Due		Greater than 181 Days		Total Past Due		Current		Total
Loans and receivables from managed entities and related parties: ⁽¹⁾
Commercial finance investment entities	$	—	$	—	$	34,907	$	34,907	$	16	$	34,923
Real estate investment entities	707		1,199		18,730		20,636		6,710		27,346
Financial fund management entities	—		1		40		41		456		497
Other	—		—		—		—		2,391		2,391
	707		1,200		53,677		55,584		9,573		65,157
Rent receivables - real estate	7		—		1		8		73		81
Total financing receivables	$	714	$	1,200	$	53,678	$	55,592	$	9,646	$	65,238


(1)	Receivables are presented gross of an allowance for credit losses of $32.5 million related to the Company’s commercial finance investment entities. The remaining receivables from managed entities and related parties have no related allowance for credit losses.

The following table is the aging of the Company’s financing receivables (presented gross of allowance for credit losses) as of December 31, 2013 (in thousands):



	30-89 Days Past Due		90-180 Days Past Due		Greater than 181 Days		Total Past Due		Current		Total
Loans and receivables from managed entities and related parties: ⁽¹⁾
Commercial finance investment entities	$	—	$	—	$	44,355	$	44,355	$	48	$	44,403
Real estate investment entities	793		1,229		16,323		18,345		3,142		21,487
Financial fund management entities	35		3		29		67		1,071		1,138
Other	33		21		—		54		70		124
	861		1,253		60,707		62,821		4,331		67,152
Rent receivables - real estate	14		4		10		28		63		91
Total financing receivables	$	875	$	1,257	$	60,717	$	62,849	$	4,394	$	67,243


(1)	Receivables are presented gross of an allowance for credit losses of $36.2 million related to the Company’s commercial finance investment entities. The remaining receivables from managed entities and related parties have no related allowance for credit losses.

The following table summarizes the activity in the allowance for credit losses for all financing receivables (in thousands):



	Loans and receivables from Managed Entities			Leases and Loans			Rent Receivables			Total
Three Months Ended September 30, 2014:
Balance, beginning of period	$	39,028		$	—		$	2		$	39,030
Provision for credit losses	520			30			9			559
Charge-offs	(7,092		)	(30		)	(6		)	(7,128		)
Recoveries	64			2			—			66
Balance, end of period	$	32,520		$	2		$	5		$	32,527

Nine Months Ended September 30, 2014:
Balance, beginning of period	$	36,229		$	—		$	14		$	36,243
Provision for (reversal of) credit losses	3,321			25			(4		)	3,342
Charge-offs	(7,094		)	(30		)	(5		)	(7,129		)
Recoveries	64			7			—			71
Balance, end of period	$	32,520		$	2		$	5		$	32,527

Ending balance, individually evaluated for impairment	$	32,520		$	2		$	—		$	32,522
Ending balance, collectively evaluated for impairment	—			—			5			5
Balance, end of period	$	32,520		$	2		$	5		$	32,527



	Loans and receivables from Managed Entities			Leases and Loans			Rent Receivables			Total
Three Months Ended September 30, 2013:
Balance, beginning of period	$	34,587		$	—		$	29		$	34,616
Provision for (reversal of) credit losses	1,810			(18		)	16			1,808
Charge-offs	(669		)	—			(13		)	(682		)
Recoveries	—			18			—			18
Balance, end of period	$	35,728		$	—		$	32		$	35,760

Nine Months Ended September 30, 2013:
Balance, beginning of period	$	32,560		$	—		$	68		$	32,628
Provision for (reversal of) credit losses	3,817			(25		)	1			3,793
Charge-offs	(669		)	—			(37		)	(706		)
Recoveries	20			25			—			45
Balance, end of period	$	35,728		$	—		$	32		$	35,760

Ending balance, individually evaluated for impairment	$	35,728		$	—		$	—		$	35,728
Ending balance, collectively evaluated for impairment	—			—			32			32
Balance, end of period	$	35,728		$	—		$	32		$	35,760

The Company’s financing receivables (presented exclusive of any allowance for credit losses) as of September 30, 2014 relate to the balance in the allowance for credit losses, as follows (in thousands):



	Loans and receivables from Managed Entities		Rent Receivables		Total
Ending balance, individually evaluated for impairment	$	65,157	$	—	$	65,157
Ending balance, collectively evaluated for impairment	—		81		81
Balance, end of period	$	65,157	$	81	$	65,238

The Company’s financing receivables (presented exclusive of any allowance for credit losses) as of December 31, 2013 relate to the balance in the allowance for credit losses, as follows (in thousands):



	Loans and receivables from Managed Entities		Rent Receivables		Total
Ending balance, individually evaluated for impairment	$	67,152	$	—	$	67,152
Ending balance, collectively evaluated for impairment	—		91		91
Balance, end of year	$	67,152	$	91	$	67,243

The following table discloses information about the Company’s impaired financing receivables (in thousands):



	Net Balance		Unpaid Balance		Specific Allowance		Average Investment in Impaired Assets
As of September 30, 2014
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	985	$	33,495	$	32,511	$	38,443
Rent receivables – real estate	—		5		5		—

As of December 31, 2013
Financing receivables with a specific valuation allowance:
Loans and receivables from managed entities – commercial finance	$	2,690	$	38,919	$	36,229	$	38,649
Rent receivables – real estate	—		14		14		32

The Company had no impaired financing receivables without a specific allowance as of September 30, 2014 and December 31, 2013.