Consumer Loans Receivable (Tables)

3 Months Ended

Jul. 01, 2017

Apr. 01, 2017

The following table summarizes consumer loans receivable (in thousands):



	July 1, 2017			April 1, 2017
Loans held for investment (acquired on Palm Harbor Acquisition Date)	$	58,373		$	60,513
Loans held for investment (originated after Palm Harbor Acquisition Date)	12,927			11,108
Loans held for sale	19,283			18,570
Construction advances	9,187			6,957
Consumer loans receivable	99,770			97,148
Deferred financing fees and other, net	(1,154		)	(1,095		)
Allowance for loan losses	(237		)	(252		)
Consumer loans receivable, net	$	98,379		$	95,801

Acquired Consumer Loans Receivable Held for Investment



	July 1, 2017			April 1, 2017
	(in thousands)
Consumer loans receivable held for investment – contractual amount	$	136,927		$	142,391
Purchase discount
Accretable	(54,912		)	(56,686		)
Non-accretable	(23,437		)	(25,032		)
Less consumer loans receivable reclassified as other assets	(205		)	(160		)
Total acquired consumer loans receivable held for investment, net	$	58,373		$	60,513

Accretable Yield Movement on Acquired Consumer Loans Receivable

The changes in accretable yield on acquired consumer loans receivable held for investment were as follows (in thousands):



	Three Months Ended
	July 1, 2017			July 2, 2016
Balance at the beginning of the period	$	56,686		$	69,053
Accretion	(2,210		)	(2,515		)
Reclassifications (to) from non-accretable discount	436			(254		)
Balance at the end of the period	$	54,912		$	66,284

Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score

The following table disaggregates CountryPlace's gross consumer loans receivable for each class by portfolio segment and credit quality indicator as of the time of origination (in thousands):



	July 1, 2017
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	621	$	392	$	382	$	—	$	—	$	1,395
620-719	11,230		7,917		6,399		—		388		25,934
720+	12,230		7,386		5,931		—		4,143		29,690
Other	51		—		429		—		—		480
Subtotal	24,132		15,695		13,141		—		4,531		57,499
Conforming mortgages
0-619	—		—		160		—		93		253
620-719	—		—		1,715		5,662		9,875		17,252
720+	—		—		246		3,525		4,784		8,555
Subtotal	—		—		2,121		9,187		14,752		26,060
Non-conforming mortgages
0-619	85		429		1,305		—		—		1,819
620-719	1,225		4,775		3,292		—		—		9,292
720+	1,510		2,878		408		—		—		4,796
Other	—		—		297		—		—		297
Subtotal	2,820		8,082		5,302		—		—		16,204
Other loans
Subtotal	—		—		7		—		—		7
	$	26,952	$	23,777	$	20,571	$	9,187	$	19,283	$	99,770



	April 1, 2017
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	705	$	411	$	393	$	—	$	—	$	1,509
620-719	11,681		8,072		5,406		—		697		25,856
720+	12,748		7,800		5,081		—		3,097		28,726
Other	51		—		433		—		—		484
Subtotal	25,185		16,283		11,313		—		3,794		56,575
Conforming mortgages
0-619	—		—		161		261		99		521
620-719	—		—		1,792		4,231		10,553		16,576
720+	—		—		247		2,465		4,124		6,836
Subtotal	—		—		2,200		6,957		14,776		23,933
Non-conforming mortgages
0-619	86		435		1,327		—		—		1,848
620-719	1,242		4,947		3,372		—		—		9,561
720+	1,527		2,909		484		—		—		4,920
Other	—		—		299		—		—		299
Subtotal	2,855		8,291		5,482		—		—		16,628
Other loans
Subtotal	—		—		12		—		—		12
	$	28,040	$	24,574	$	19,007	$	6,957	$	18,570	$	97,148

Loans and Leases Receivable, Other Information

Over the life of the acquired loans, the Company continues to estimate cash flows expected to be collected by CountryPlace. As of the balance sheet date, the Company evaluates whether the present value of expected cash flows, determined using the effective interest rate, has decreased from the value at acquisition and, if so, recognizes an allowance for loan loss. The present value of any subsequent increase in the loan pool's actual cash flows expected to be collected is used first to reverse any existing allowance for loan loss. Any remaining increase in cash flows expected to be collected adjusts the amount of accretable yield recognized on a prospective basis over the loan pool's remaining life. The weighted averages of assumptions used in the calculation of expected cash flows to be collected are as follows:



	July 1, 2017		April 1, 2017
Prepayment rate	13.9	%	13.8	%
Default rate	1.0	%	1.1	%

Assuming there was a 1% unfavorable variation from the expected level, for each key assumption, the expected cash flows for the life of the portfolio, as of July 1, 2017, would decrease by approximately $1.8 million and $4.6 million for the expected prepayment rate and expected default rate, respectively.