Net Investment in Direct Finance Leases (Tables)

6 Months Ended

Jun. 30, 2013

Net Investment in Direct Finance Leases [Abstract]

Components of entity's net investment in finance leases

The following table represents the components of the Company's net investment in direct finance leases (in thousands):

	June 30,	December 31,
	2013	2012
Gross finance lease receivables (1)	$          99,827	$        116,999
Unearned income (2)	(22,744)	(31,445)
Net investment in direct finance leases	$          77,083	$          85,554

(1) At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received.  Approximately $0.1 million and $9.1 million of unguaranteed residual value at June 30, 2013 and December 31, 2012, respectively, were included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of June 30, 2013 and December 31, 2012.

(2) The difference between the gross finance lease receivable and the cost of the equipment or carrying amount at the lease inception is recorded as unearned income. Unearned income together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of June 30, 2013 and December 31, 2012.

Gross finance lease receivables by categories of customers

Based on the above categories, the Company's gross finance lease receivables were as follows (in thousands):

	June 30,	December 31,
	2013	2012
Tier 1	$          82,086	$          98,611
Tier 2	17,741	18,388
Tier 3	-	-
	$99,827	$        116,999

Contractual maturities of gross finance lease receivables

Contractual maturities of the Company's gross finance lease receivables subsequent to June 30, 2013 for the years ending June 30 are as follows (in thousands):

2014	$	18,909
2015		17,938
2016		17,237
2017		14,825
2018		19,359
2019 and thereafter		11,559
	$	99,827