11. Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Reconciliation of the acquired finance receivables and related debt measured at fair value on a recurring basis

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
	(in thousands)						(in thousands)
Finance Receivables Measured at Fair Value:
Balance at beginning of period	$	743		$	9,058		$	1,664		$	14,476
Payments on finance receivables at fair value		(427	)		(3,766	)		(1,348	)		(7,873	)
Charge-offs on finance receivables at fair value		–			(213	)		–			(556	)
Discount accretion		–			592			–			(353	)
Mark to fair value		–			15			–			(8	)
Balance at end of period	$	316		$	5,686		$	316		$	5,686
Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of period	$	–		$	8,576		$	1,250		$	13,117
Principal payments on debt at fair value		–			(3,515	)		(1,250	)		(8,554	)
Premium accretion		–			186			–			490
Mark to fair value		–			145			–			339
Balance at end of period		–			5,392			–			5,392
Reduction for payments collected and payable		–			(878	)		–			(878	)
Adjusted balance at end of period	$	–		$	4,514		$	–		$	4,514

Comparision of fair values of the Fireside receivables and the related secured debt

	June 30, 2015				December 31, 2014
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)
Fireside receivables portfolio	$	316	$	316	$	1,664	$	1,664
Debt secured by Fireside receivables portfolio		–		–		–		1,250

Qualitative information about level 3 fair value measurements

Financial Instrument	Fair Values as of						Inputs as of
	June 30,		December 31,		Valuation	Unobservable	June 30,		December 31,
	2015		2014		Techniques	Inputs	2015		2014
	(In thousands)
Assets:
Finance receivables measured at fair value	$	316	$	1,664	Discounted cash flows	Discount rate		15.4%		15.4%
						Cumulative net losses		5.0%		5.0%
						Monthly average prepayments		0.5%		0.5%
Liabilities:
Debt secured by receivables measured at fair value		–		1,250	Discounted cash flows	Discount rate		n/a		12.2%

Estimated fair values of financial assets and liabilities

	As of June 30, 2015
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	18,436	$	18,436	$	–	$	–	$	18,436
Restricted cash and equivalents		200,122		200,122		–		–		200,122
Finance receivables, net		1,710,257		–		–		1,687,552		1,687,552
Finance receivables measured at fair value		316		–		–		316		316
Residual interest in securitizations		20		–		–		20		20
Accrued interest receivable		28,079		–		–		28,079		28,079
Liabilities:
Warehouse lines of credit	$	61,771	$	–	$	–	$	61,771	$	61,771
Accrued interest payable		3,055		–		–		3,055		3,055
Residual interest financing		11,274		–		–		11,274		11,274
Securitization trust debt		1,775,574		–		–		1,788,334		1,788,334
Subordinated renewable notes		14,982		–		–		14,982		14,982

	As of December 31, 2014
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	17,859	$	17,859	$	–	$	–	$	17,859
Restricted cash and equivalents		175,382		175,382		–		–		175,382
Finance receivables, net		1,534,496		–		–		1,512,567		1,512,567
Finance receivables measured at fair value		1,664		–		–		1,664		1,664
Residual interest in securitizations		68		–		–		68		68
Accrued interest receivable		23,372		–		–		23,372		23,372
Liabilities:
Warehouse lines of credit	$	56,839	$	–	$	–	$	56,839	$	56,839
Accrued interest payable		2,613		–		–		2,613		2,613
Residual interest financing		12,327		–		–		12,327		12,327
Debt secured by receivables measured at fair value		1,250		–		–		1,250		1,250
Securitization trust debt		1,598,496		–		–		1,619,742		1,619,742
Subordinated renewable notes		15,233		–		–		15,233		15,233