Loan Loss Allowance and Credit Quality (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Activity in Loan Loss Allowance

The activity in the loan loss allowance for individually acquired loans for the three months ended March 31, 2014 and 2013 was as follows:

	Three Months Ended March 31, 2014
	Retail InstallmentContractsAcquiredIndividually			Receivablesfrom Dealers Heldfor Investment			UnsecuredConsumer Loans
Balance — beginning of period	$	2,132,634		$	1,090		$	179,350
Provision for loan losses		656,706			(55	)		62,129
Charge-offs		(752,565	)		—			(40,948	)
Recoveries		407,777			—			2,659
Balance — end of period	$	2,444,552		$	1,035		$	203,190

	Three Months Ended March 31, 2013
	Retail InstallmentContractsAcquiredIndividually			Receivablesfrom Dealers Heldfor Investment		UnsecuredConsumer Loans
Balance — beginning of period	$	1,555,362		$	—	$	—
Provision for loan losses		251,641			—		—
Charge-offs		(384,726	)		—		—
Recoveries		238,335			—		—
Balance — end of period	$	1,660,612		$	—	$	—

Summary of Activity in Loan Loss Allowance Related to Purchased Receivables Portfolios

The activity in the loan loss allowance related to purchased receivables portfolios for the three months ended March 31, 2014 and 2013 was as follows:

	Three Months Ended
	March 31,
	2014			2013
Balance — beginning of period	$	226,356		$	218,640
Incremental provisions for purchased receivable portfolios		1,325			21,662
Incremental reversal of provisions for purchased receivable portfolios		(21,511	)		(56,110	)
Balance — end of period	$	206,170		$	184,192

Summary of Delinquencies

A summary of delinquencies as of March 31, 2014 and December 31, 2013 is as follows:

	March 31, 2014
	Retail Installment Contracts Held for Investment						Receivablesfrom Dealers Heldfor Investment		UnsecuredConsumerLoans
	LoansAcquiredIndividually		PurchasedReceivablesPortfolios		Total
Principal, current	$	20,933,262	$	1,247,506	$	22,180,768	$	109,105	$	1,088,013
Principal, 31-60 days past due		1,290,394		210,344		1,500,738		—		39,639
Delinquent principal over 60 days		602,983		109,047		712,030		—		90,103
Total principal	$	22,826,639	$	1,566,897	$	24,393,536	$	109,105	$	1,217,755

	December 31, 2013
	Retail Installment Contracts Held for Investment						Receivablesfrom Dealers Heldfor Investment		UnsecuredConsumerLoans
	LoansAcquiredIndividually		PurchasedReceivablesPortfolios		Total
Principal, current	$	18,653,827	$	1,457,813	$	20,111,640	$	95,835	$	1,072,316
Principal, 31-60 days past due		1,729,139		321,549		2,050,688		—		28,102
Delinquent principal over 60 days		855,315		181,698		1,037,013		—		65,360
Total principal	$	21,238,281	$	1,961,060	$	23,199,341	$	95,835	$	1,165,778

Summary of Credit Risk Profile

A summary of the credit risk profile of the Company’s consumer loans by Fair Isaac Corporation (FICO^®) distribution, determined at origination, as of March 31, 2014 and December 31, 2013 was as follows

March 31, 2014
	Retail Installment		Unsecured
	Contracts Held		Consumer
FICO Band	for Investment		Loans
<540		27.0%		3.6%
540-599		32.2%		27.7%
600-659		26.2%		43.8%
>660		14.6%		24.9%

December 31, 2013
	Retail Installment		Unsecured
	Contracts Held		Consumer
FICO Band	for Investment		Loans
<540		26.8%		6.3%
540-599		31.8%		24.2%
600-659		26.3%		39.4%
>660		15.1%		30.1%

Summary Commercial Loan Credit Quality Indicators for Receivables from Dealers Held for Investment

Commercial loan credit quality indicators for receivables from dealers held for investment as of March 31, 2014 and December 31, 2013 were as follows:

	March 31, 2014		December 31, 2013
Pass	$	89,785	$	95,835
Special Mention		19,320		—
Substandard		—		—
Doubtful		—		—
	$	109,105	$	95,835

Summary of Company's TDRs

The table below presents the Company’s loans modified in TDRs as of March 31, 2014 and December 31, 2013:

	March 31, 2014						December 31, 2013
	Retail Installment Contracts			Unsecured Consumer Loans			Retail Installment Contracts			Unsecured Consumer Loans
Total TDR principal	$	2,812,852		$	9,600		$	2,604,351		$	8,391
Accrued interest		68,967			—			70,965			—
Discount		(80,025	)		(147	)		(70,321	)		(274	)
Origination costs		4,324			8			4,161			5
Outstanding recorded investment		2,806,118			9,461			2,609,156			8,122
Allowance for loan losses		(498,811	)		(3,870	)		(475,128	)		(2,345	)
Outstanding recorded investment, net of allowance	$	2,307,307		$	5,591		$	2,134,028		$	5,777

Summary of Performing and Nonperforming TDRs

A summary of the Company’s performing and non-performing TDRs at March 31, 2014 and December 31, 2013, is as follows:

	March 31, 2014				December 31, 2013
	Retail Installment Contracts		Unsecured Consumer Loans		Retail Installment Contracts		Unsecured Consumer Loans
Current	$	2,028,793		4,008	$	1,690,893	$	6,120
31-60 days past due		500,876		1,171		556,489		875
Greater than 60 days past due (non-performing)		283,183		4,421		356,969		1,396
Total TDRs	$	2,812,852	$	9,600	$	2,604,351	$	8,391

Average Recorded Investment and Income Recognized on TDR Loans

Average recorded investment and income recognized on TDR loans are as follows:

	Three Months Ended
	March 31, 2014				March 31, 2013
	Retail Installment Contracts		Unsecured Consumer Loans		Retail Installment Contracts		Unsecured Consumer Loans
Average outstanding recorded investment in TDRs	$	2,707,637	$	8,996	$	1,556,410	$	—
Interest income recognized	$	120,451	$	329	$	92,141	$	—

Summary of Loan Modification Accounted as TDRs

The following table summarizes the financial effects of loan modifications accounted for as TDRs that occurred during the three-months ended March 31, 2014 and 2013 (dollars in thousands):

	Three Months Ended
	March 31, 2014				March 31, 2013
	Retail Installment Contracts		Unsecured Consumer Loans		Retail Installment Contracts
Troubled Debt Restructurings:
Outstanding recorded investment before TDR	$	624,009	$	11,495	$	290,861
Outstanding recorded investment after TDR	$	581,053	$	11,336	$	288,841
Number of contracts		39,229		14,829		20,474

Summary of Defaults in Loan Modifications Accounted as TDRs

Loan modifications accounted for as TDRs within the previous 12 months that subsequently defaulted during the three-months ended March 31, 2014 and 2013 are summarized in the following table:

	Three Months Ended
	March 31, 2014				March 31, 2013
	Retail Installment Contracts		Unsecured Consumer Loans		Retail Installment Contracts
Troubled debt restructurings that subsequently defaulted	$	11,389	$	—	$	10,072
Number of contracts		1,348		—		822