Consumer Loans Receivable (Tables)

3 Months Ended

6 Months Ended

Apr. 01, 2017

Sep. 30, 2017

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



	September 30, 2017			April 1, 2017
Loans held for investment (acquired on Palm Harbor Acquisition Date)	$	55,964		$	60,513
Loans held for investment (originated after Palm Harbor Acquisition Date)	16,891			11,108
Loans held for sale	16,044			18,570
Construction advances	10,349			6,957
Consumer loans receivable	99,248			97,148
Deferred financing fees and other, net	(1,259		)	(1,095		)
Allowance for loan losses	(488		)	(252		)
Consumer loans receivable, net	$	97,501		$	95,801

Acquired Consumer Loans Receivable Held for Investment



	September 30, 2017			April 1, 2017
	(in thousands)
Consumer loans receivable held for investment – contractual amount	$	130,484		$	142,391
Purchase discount
Accretable	(51,180		)	(56,686		)
Non-accretable	(23,271		)	(25,032		)
Less consumer loans receivable reclassified as other assets	(69		)	(160		)
Total acquired consumer loans receivable held for investment, net	$	55,964		$	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						Six Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Balance at the beginning of the period	$	54,912		$	66,284		$	56,686		$	69,053
Accretion	(2,163		)	(2,449		)	(4,373		)	(4,964		)
Reclassifications to non-accretable discount	(1,569		)	(1,626		)	(1,133		)	(1,880		)
Balance at the end of the period	$	51,180		$	62,209		$	51,180		$	62,209

Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score



	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

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):



	September 30, 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	$	559	$	381	$	359	$	—	$	—	$	1,299
620-719	10,862		7,586		7,024		—		158		25,630
720+	11,696		7,091		9,012		—		2,049		29,848
Other	50		—		373		—		—		423
Subtotal	23,167		15,058		16,768		—		2,207		57,200
Conforming mortgages
0-619	—		—		159		—		93		252
620-719	—		—		1,746		6,344		9,076		17,166
720+	—		—		330		4,005		4,552		8,887
Other	—		—		—		—		116		116
Subtotal	—		—		2,235		10,349		13,837		26,421
Non-conforming mortgages
0-619	84		421		1,079		—		—		1,584
620-719	1,201		4,670		3,257		—		—		9,128
720+	1,494		2,717		404		—		—		4,615
Other	—		—		289		—		—		289
Subtotal	2,779		7,808		5,029		—		—		15,616
Other loans
Subtotal	—		—		11		—		—		11
	$	25,946	$	22,866	$	24,043	$	10,349	$	16,044	$	99,248

Loans and Leases Receivable, Other Information

ver the life of the acquired loans. 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:



	September 30, 2017		April 1, 2017
Prepayment rate	14.1	%	13.8	%
Default rate	1.2	%	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 September 30, 2017, would decrease by approximately $1.6 million and $4.3 million for the expected prepayment rate and expected default rate, respectively.