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13. Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

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

		December 31,
		2015				2014
		(in thousands)
Finance Receivables Measured at Fair Value:
Balance at beginning of year		$	1,664			$	14,476
Payments on finance receivables at fair value			(1,603	)			(12,276	)
Charge-offs on finance receivables at fair value			–				(846	)
Discount accretion			–				283
Mark to fair value			–				27
Balance at end of year		$	61			$	1,664


Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of year		$	1,250			$	13,117
Principal payments on debt at fair value			(1,250	)			(12,456	)
Premium accretion			–				712
Mark to fair value			–				(123	)
Balance at end of year			–				1,250
Reduction for payments collected and payable			–				–
Adjusted balance at end of year		$	–			$	1,250

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

December 31, 2015

December 31, 2014

Contractual

Fair

Contractual

Fair

Balance

Value

Balance

Value

(In thousands)

Fireside receivables portfolio

$

61

$

61

$

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
		December 31,									December 31,
		2015			2014		Valuation Techniques		Unobservable Inputs		2015		2014
		(In thousands)
Assets:
									Discount rate		15.4%		15.4%
Finance receivables measured at fair value	$	61		$	1,664		Discounted cash flows		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 December 31, 2015
Financial Instrument		(In thousands)
		Carrying				Fair Value Measurements Using:
		Value				Level 1				Level 2				Level 3				Total
Assets:
Cash and cash equivalents		$	19,322			$	19,322			$	–			$	–			$	19,322
Restricted cash and equivalents			106,054				106,054				–				–				106,054
Finance receivables, net			1,909,490				–				–				1,879,510				1,879,510
Finance receivables measured at fair value			61				–				–				61				61
Accrued interest receivable			31,547				–				–				31,547				31,547
Liabilities:
Warehouse lines of credit		$	196,461			$	–			$	–			$	196,461			$	196,461
Accrued interest payable			3,260				–				–				3,260				3,260
Residual interest financing			9,042				–				–				9,042				9,042
Securitization trust debt			1,731,598				–				–				1,718,418				1,718,418
Subordinated renewable notes			15,138				–				–				15,138				15,138

		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
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

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) the reasons for electing a fair value option for each eligible item or group of similar eligible items and (b) if the fair value option is elected for some but not all eligible items within a group of similar eligible items: (i) a description of those similar items and the reasons for partial election and (ii) information of how the group of similar items relates to individual balance sheet line items; (c) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, information of how each line item in the statement of financial position relates to major categories of assets and liabilities presented in accordance with other fair value disclosures; (2) for items included in the income statement: (a) a description of how interest and dividends are measured and where they are reported in the income statement; (b) how the gains or losses attributable to changes in instrument-specific credit risk were determined; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk: (i) qualitative information about the reasons for the changes and (ii) how the gains and losses attributable to changes in instrument-specific credit risk were determined; and (3) certain other disclosures as required or determined to be provided.

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