Finance Receivables (Tables)

9 Months Ended

Sep. 30, 2013

Finance Receivables

Schedule of components of net finance receivables by type

	Personal			Real			Retail
(dollars in thousands)	Loans			Estate Loans			Sales Finance			Total
September 30, 2013
Gross receivables*	$	3,455,630		$	8,069,358		$	129,602		$	11,654,590
Unearned finance charges and points and fees	(515,471		)	(2,137		)	(12,804		)	(530,412		)
Accrued finance charges	42,704			43,605			1,090			87,399
Deferred origination costs	36,943			291			-			37,234
Total	$	3,019,806		$	8,111,117		$	117,888		$	11,248,811
December 31, 2012
Gross receivables	$	2,984,423		$	8,793,531		$	233,296		$	12,011,250
Unearned finance charges and points and fees	(402,828		)	(5,910		)	(27,087		)	(435,825		)
Accrued finance charges	36,937			50,666			2,148			89,751
Deferred origination costs	31,200			351			-			31,551
Total	$	2,649,732		$	8,838,638		$	208,357		$	11,696,727

* Gross receivables are defined below:

· finance receivables purchased as a performing receivable – gross finance receivables equal the unpaid principal balance (“UPB”) for interest bearing accounts and the gross remaining contractual payments for precompute accounts plus the remaining unearned discount, net of premium established at the time of purchase to reflect the finance receivable balance at its fair value;

· finance receivables originated subsequent to the Fortress Acquisition – gross finance receivables equals the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and

· purchased credit impaired finance receivables – gross finance receivables equals the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts.

Schedule of unused credit lines extended to customers by the Company

	September 30,			December 31,
(dollars in thousands)	2013			2012
Real estate loans	$	65,201		$	86,437
Retail sales finance	-		*	78,071
Total	$	65,201		$	164,508

* Reflects the cessation of purchases of revolving retail accounts effective January 16, 2013.

Summary of net finance receivable by type by days delinquent

	Personal		Real		Retail
(dollars in thousands)	Loans		Estate Loans		Sales Finance		Total
September 30, 2013
Net finance receivables:
60-89 days past due	$	26,048	$	93,928	$	1,705	$	121,681
90-119 days past due	19,375		63,055		1,094		83,524
120-149 days past due	15,270		58,785		811		74,866
150-179 days past due	12,261		38,424		649		51,334
180 days or more past due	919		352,057		130		353,106
Total delinquent finance receivables	73,873		606,249		4,389		684,511
Current	2,897,643		7,321,444		110,114		10,329,201
30-59 days past due	48,290		183,424		3,385		235,099
Total	$	3,019,806	$	8,111,117	$	117,888	$	11,248,811
December 31, 2012
Net finance receivables:
60-89 days past due	$	21,683	$	99,472	$	2,107	$	123,262
90-119 days past due	17,538		73,712		1,416		92,666
120-149 days past due	14,050		57,985		1,171		73,206
150-179 days past due	9,613		45,326		743		55,682
180 days or more past due	12,107		382,227		331		394,665
Total delinquent finance receivables	74,991		658,722		5,768		739,481
Current	2,534,960		7,983,413		197,392		10,715,765
30-59 days past due	39,781		196,503		5,197		241,481
Total	$	2,649,732	$	8,838,638	$	208,357	$	11,696,727

Schedule of performing and nonperforming net finance receivables by type

	Personal		Real		Retail
(dollars in thousands)	Loans		Estate Loans		Sales Finance		Total
September 30, 2013
Performing	$	2,971,981	$	7,598,796	$	115,204	$	10,685,981
Nonperforming	47,825		512,321		2,684		562,830
Total	$	3,019,806	$	8,111,117	$	117,888	$	11,248,811
December 31, 2012
Performing	$	2,596,424	$	8,279,388	$	204,696	$	11,080,508
Nonperforming	53,308		559,250		3,661		616,219
Total	$	2,649,732	$	8,838,638	$	208,357	$	11,696,727

Schedule of information regarding purchased credit impaired finance receivables

	September 30,		December 31,
(dollars in thousands)	2013		2012
Carrying amount, net of allowance	$	1,282,683	$	1,373,792
Outstanding balance	$	1,825,077	$	1,957,260
Allowance for purchased credit impaired finance receivable losses	$	46,003	$	16,973

Schedule of changes in accretable yield for purchased credit impaired finance receivables

	At or for the			At or for the			At or for the			At or for the
	Three Months			Three Months			Nine Months			Nine Months
	Ended			Ended			Ended			Ended
	September 30,			September 30,			September 30,			September 30,
(dollars in thousands)	2013			2012			2013			2012
Balance at beginning of period	$	844,018		$	389,461		$	624,879		$	463,960
Accretion	(32,041		)	(34,768		)	(97,036		)	(96,697		)
Reclassifications from nonaccretable difference (a)	2,740			313,864			303,328			313,864
Disposals of finance receivables (b)	(8,337		)	(6,973		)	(24,791		)	(19,543		)
Balance at end of period	$	806,380		$	661,584		$	806,380		$	661,584

(a) Reclassifications from nonaccretable difference for the three and nine months ended September 30, 2013 represent the increases in accretion resulting from higher estimated undiscounted cash flows. Reclassifications from nonaccretable difference for the three and nine months ended September 30, 2012 represent the increase in accretion related to an increase in the pool yield.

(b) Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged-off during the period.

Schedule of information regarding TDR finance receivables

	Real Estate
(dollars in thousands)	Loans
September 30, 2013
TDR gross finance receivables	$	1,260,429
TDR net finance receivables	$	1,264,971
Allowance for TDR finance receivable losses	$	161,464
December 31, 2012
TDR gross finance receivables	$	802,495
TDR net finance receivables	$	806,420
Allowance for TDR finance receivable losses	$	92,723

Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables

	Three Months		Three Months		Nine Months		Nine Months
	Ended		Ended		Ended		Ended
	September 30,		September 30,		September 30,		September 30,
(dollars in thousands)	2013		2012		2013		2012
Real Estate Loans
TDR average net receivables	$	1,224,413	$	590,024	$	1,072,115	$	451,248
TDR finance charges recognized	$	17,109	$	8,572	$	45,791	$	18,470

Schedule of information regarding the new volume of the TDR finance receivables

	Three Months		Three Months		Nine Months		Nine Months
	Ended		Ended		Ended		Ended
	September 30,		September 30,		September 30,		September 30,
(dollars in thousands)	2013		2012		2013		2012
Real Estate Loans
Number of TDR accounts	1,618		1,634		5,919		3,610
Pre-modification TDR net finance receivables	$	131,969	$	154,492	$	467,362	$	367,858
Post-modification TDR net finance receivables	$	139,830	$	152,073	$	488,577	$	370,031

Schedule of net finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period

	Three Months		Three Months		Nine Months		Nine Months
	Ended		Ended		Ended		Ended
	September 30,		September 30,		September 30,		September 30,
(dollars in thousands)	2013		2012		2013		2012
Real Estate Loans
Number of TDR accounts	377		126		796		408
TDR net finance receivables*	$	26,030	$	12,416	$	59,719	$	47,418

* Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.