VIE and Other Finance Receivables, net of Allowance for Losses (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of VIE and other finance receivables, net of allowance for losses

	March 31, 2014			December 31, 2013
	(Dollars in thousands)
Structured settlements and annuities	$	78,246		$	75,894
Less: unearned income	(51,167		)	(49,751		)
	27,079			26,143
Lottery winnings	86,131			87,495
Less: unearned income	(27,406		)	(28,442		)
	58,725			59,053
Pre-settlement funding transactions	56,739			56,309
Less: deferred revenue	(1,731		)	(2,240		)
	55,008			54,069
Attorney cost financing	1,761			2,069
Less: deferred revenue	—			—
	1,761			2,069
VIE and other finance receivables, gross	142,573			141,334
Less: allowance for losses	(8,516		)	(8,342		)
VIE and other finance receivables, net	$	134,057		$	132,992

Schedule of encumbrances on VIE and other finance receivables, net of allowance for losses

Encumbrance	March 31, 2014		December 31, 2013
	(Dollars in thousands)
VIE securitization debt (2)	$	76,985	$	78,575
$35 million pre-settlement credit facility (1)	27,739		25,047
$45.1 million long-term pre-settlement facility (2)	9,053		11,680
$2.4 million long-term facility (2)	2,445		2,524
Total VIE finance receivables, net of allowances	116,222		117,826
Not encumbered	17,835		15,166
Total VIE and other finance receivables, net of allowances	$	134,057	$	132,992

(1) See Note 8

(2) See Note 9

Schedule of activity in the allowance for losses for VIE and other finance receivables

	Structured  settlements and  annuities			Lottery			Pre-settlement  funding  transactions			Life insurance premium financing		Attorney cost  financing			Total
	(Dollars in thousands)
Three Months Ended March 31, 2014
Allowance for losses:
Balance as of December 31, 2013	$	(48	)	$	—		$	(8,011	)	$	—	$	(283	)	$	(8,342	)
Provision for loss	59			(11		)	(1,139		)	—		—			(1,091		)
Charge-offs	14			7			974			—		—			995
Recoveries	(78		)	—			—			—		—			(78		)
Balance as of March 31, 2014	$	(53	)	$	(4	)	$	(8,176	)	$	—	$	(283	)	$	(8,516	)
Individually evaluated for impairment	$	(53	)	$	(4	)	$	(3,573	)	$	—	$	—		$	(3,630	)
Collectively evaluated for impairment	—			—			(4,603		)	—		(283		)	(4,886		)
Balance as of March 31, 2014	$	(53	)	$	(4	)	$	(8,176	)	$	—	$	(283	)	$	(8,516	)
VIE and other finance receivables, net:
Individually evaluated for impairment	$	27,026		$	58,721		$	4,424		$	—	$	1,478		$	91,649
Collectively evaluated for impairment	—			—			42,408			—		—			42,408
Balance as of March 31, 2014	$	27,026		$	58,721		$	46,832		$	—	$	1,478		$	134,057
Three Months Ended March 31, 2013
Allowance for losses:
Balance as of December 31, 2012	$	(181	)	$	(6	)	$	(4,194	)	$	—	$	(269	)	$	(4,650	)
Provision for loss	—			—			(1,150		)	—		54			(1,096		)
Charge-offs	—			—			72			—		—			72
Recoveries	—			—			—			—		—			—
Other	—			6			—			—		—			6
Balance as of March 31, 2013	$	(181	)	$	—		$	(5,272	)	$	—	$	(215	)	$	(5,668	)
Individually evaluated for impairment	$	(181	)	$	—		$	(1,073	)	$	—	$	—		$	(1,254	)
Collectively evaluated for impairment	—			—			(4,199		)	—		(215		)	(4,414		)
Balance as of March 31, 2013	$	(181	)	$	—		$	(5,272	)	$	—	$	(215	)	$	(5,668	)
VIE and other finance receivables, net:
Individually evaluated for impairment	$	25,918		$	60,448		$	1,288		$	—	$	—		$	87,654
Collectively evaluated for impairment	—			—			50,986			—		2,585			53,571
Balance as of March 31, 2013	$	25,918		$	60,448		$	52,274		$	—	$	2,585		$	141,225

Schedule of gross pre-settlement funding transactions based on their year of origination

Year of  Origination	March 31, 2014		December 31, 2013
	(Dollars in thousands)
2009	$	4,016	$	4,578
2010	5,204		5,740
2011	9,612		10,915
2012	15,742		17,527
2013	15,147		17,549
2014	7,018		—
	$	56,739	$	56,309

Schedule of portfolio delinquency status excluding presettlement funding transactions and attorney cost financing

													VIE and Other
	30-59		60-89		Greater						VIE and Other  Finance		Finance  Receivables, net
	Days		Days		than		Total				Receivables,		> 90 days
	Past Due		Past Due		90 Days		Past Due		Current		net		accruing
	(Dollars in thousands)
March 31, 2014:
Structured settlements and annuities	$	3	$	3	$	78	$	84	$	26,942	$	27,026	$	—
Lottery winnings	7		99		18		124		58,597		58,721		—
Total	$	10	$	102	$	96	$	208	$	85,539	$	85,747	$	—
December 31, 2013:
Structured settlements and annuities	$	4	$	1	$	62	$	67	$	26,028	$	26,095	$	—
Lottery winnings	—		—		18		18		59,035		59,053		—
Total	$	4	$	1	$	80	$	85	$	85,063	$	85,148	$	—