Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2012

Loans Receivable

Loans receivable

Schedule of loans receivable

	December 31, 2012		December 31, 2011
	(Dollars in thousands)
Domestic:
Commercial loans:
Affiliates	$	6,584	$	6,719
SBA, net of allowance for loan losses of $518 and $333, respectively		20,459		26,765
Other, net of allowance for loan losses of $1,083		7,530		12,212
Total loans, net	$	34,573	$	45,696

SBA Held for Sale

Loans receivable

Schedule of loans receivable

	December 31, 2012		December 31, 2011
	(Dollars in thousands)
Outstanding balance	$	1,083	$	7,483
Capitalized costs, net of fees		4		131
Carrying amount of loans, net	$	1,087	$	7,614

Schedule of changes in loans receivable

	Year Ended December 31,
	2012			2011
	(Dollars in thousands)
Beginning Balance	$	7,614		$	11,608
Originations and advances of loans		11,099			21,897
Payments received		(65	)		(96	)
Capitalized costs, net		(126	)		(8	)
Loans sold and transferred		(17,435	)		(25,787	)
Ending Balance	$	1,087		$	7,614

Loans Held for Investment

Loans receivable

Schedule of activity in the allowance for loan losses by portfolio of loans held for investment

	Allowance for Loan Losses:
(Dollars in thousands)	SBA held for investment			Affiliates		Other		Total
Balance, January 1, 2012	$	333		$	—	$	1,083	$	1,416
Provisions		635			—		—		635
Recoveries		(46	)		—		—		(46	)
Charge-offs		(404	)		—		—		(404	)
Balance, December 31, 2012	$	518		$	—	$	1,083	$	1,601
Balance, January 1, 2011	$	365		$	—	$	1,083	$	1,448
Provisions		463			—		—		463
Recoveries		(78	)		—		—		(78	)
Charge-offs		(417	)		—		—		(417	)
Balance, December 31, 2011	$	333		$	—	$	1,083	$	1,416

Analysis of the allowance for loan losses and recorded investment

	Commercial Loans:
(Dollars in thousands)	SBA		Affiliates		Other		Total
December 31, 2012:
Loans individually evaluated for impairment	$	585	$	6,584	$	8,613	$	15,782
Loans collectively evaluated for impairment		19,305		—		—		19,305
Total loans evaluated for impairment (excluding loans held for sale)	$	19,890	$	6,584	$	8,613	$	35,087
Allowance for loans individually evaluated for impairment	$	325	$	—	$	1,083	$	1,408
Allowance for loans collectively evaluated for impairment		193		—		—		193
Total allowance for loan losses	$	518	$	—	$	1,083	$	1,601
December 31, 2011:
Loans individually evaluated for impairment	$	404	$	6,719	$	13,295	$	20,418
Loans collectively evaluated for impairment		19,080		—		—		19,080
Total loans evaluated for impairment (excluding loans held for sale)	$	19,484	$	6,719	$	13,295	$	39,498
Allowance for loans individually evaluated for impairment	$	308	$	—	$	1,083	$	1,391
Allowance for loans collectively evaluated for impairment		25		—		—		25
Total allowance for loan losses	$	333	$	—	$	1,083	$	1,416

Schedule of recorded investment in loans (excluding loans held for sale) by credit quality indicator

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
December 31, 2012:
SBA—commercial loans	$	15,315	$	3,954	$	434	$	187	$	19,890

	Accrual		Non-Accrual		Total
Affiliates—commercial loans	$	3,323	$	3,261	$	6,584
Other—commercial loans(1)		3,484		5,129		8,613
	$	6,807	$	8,390	$	15,197
Total loans (excluding loans held for sale)					$	35,087

(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
December 31, 2011:
SBA—commercial loans	$	15,325	$	3,648	$	107	$	404	$	19,484

	Accrual		Non-Accrual		Total
Affiliates—commercial loans	$	6,719	$	—	$	6,719
Other—commercial loans(1)		4,398		8,897		13,295
	$	11,117	$	8,897	$	20,014
Total loans (excluding loans held for sale)					$	39,498

(1)

Represents loans made to U.S. non-affiliated entities that are secured primarily by business assets (as disclosed previously under the heading "Loans receivable—other" of this footnote).

Schedule of aging analysis of recorded investment in loans held for investment

	Loans Past Due and Still Accruing
(Dollars in thousands)	31-60 Days		61-90 Days		Over 90 Days		Total		Non-Accrual Loans		Current Loans		Total Loans
December 31, 2012:
Commercial loans:
SBA	$	327	$	5	$	—	$	332	$	585	$	18,973	$	19,890
Affiliates		—		—		—		—		3,261		3,323		6,584
Other		—		—		—		—		5,129		3,484		8,613
Total loans (excluding loans held for sale)	$	327	$	5	$	—	$	332	$	8,975	$	25,780	$	35,087
December 31, 2011:
Commercial loans:
SBA	$	—	$	—	$	—	$	—	$	404	$	19,080	$	19,484
Affiliates		—		—		—		—		—		6,719		6,719
Other		—		—		—		—		8,897		4,398		13,295
Total loans (excluding loans held for sale)	$	—	$	—	$	—	$	—	$	9,301	$	30,197	$	39,498

Schedule of additional information regarding impaired loans

	Recorded Investment In:
(Dollars in thousands)	Impaired Loans Without a Related Allowance		Impaired Loans With a Related Allowance		Total Impaired Loans		Unpaid Principal Balance		Related Valuation Allowance		Average Impaired Loans for the Year
December 31, 2012:
Commercial loans:
SBA	$	—	$	585	$	585	$	620	$	325	$	660
Affiliates		—		—		—		—		—		—
Other		2,159		2,970		5,129		7,027		1,083		6,984
Total loans (excluding loans held for sale)	$	2,159	$	3,555	$	5,714	$	7,647	$	1,408	$	7,644
December 31, 2011:
Commercial loans:
SBA	$	—	$	404	$	404	$	425	$	308	$	652
Affiliates		—		—		—		—		—		—
Other		5,897		3,000		8,897		10,569		1,083		9,648
Total loans (excluding loans held for sale)	$	5,897	$	3,404	$	9,301	$	10,994	$	1,391	$	10,300

Affiliates

Loans receivable

Schedule of loans receivable

	December 31, 2012		December 31, 2011
	(Dollars in thousands)
Outstanding balance	$	6,203	$	6,518
Discounts, net		—		(59	)
Capitalized interest		381		260
Carrying amount of loans, net	$	6,584	$	6,719

Schedule of changes in loans receivable

	Year Ended December 31,
	2012			2011
	(Dollars in thousands)
Beginning Balance	$	6,719		$	16,781
Advances		—			700
Payments received		(316	)		(2,042	)
Capitalized costs, net		122			127
Discount accretion, net		59			89
Loan transfer(1)		—			(1,402	)
Transfer to "held for sale" classification (see Note 4)		—			(7,148	)
Other noncash adjustments		—			(492	)
Foreign exchange gains		—			106
Ending Balance	$	6,584		$	6,719

(1)

Represents the sale and transfer of a loan to an affiliated entity as partial consideration for the repayment of a note payable to that affiliated entity.

SBA Held for Investment, net

Loans receivable

Schedule of loans receivable

	December 31, 2012			December 31, 2011
	(Dollars in thousands)
Outstanding balance	$	21,013		$	20,503
Allowance for loan losses		(518	)		(333	)
Discounts, net		(1,499	)		(1,292	)
Capitalized costs		376			273
Carrying amount of loans, net	$	19,372		$	19,151

Schedule of changes in loans receivable

	Year Ended December 31,
	2012			2011
	(Dollars in thousands)
Beginning Balance	$	19,151		$	15,415
Purchases of loans		—			696
Originations and advances of loans		3,700			5,617
Payments received		(2,762	)		(2,085	)
Capitalized costs		104			137
Change in allowance for loan losses		(185	)		32
Discount accretion, net		(238	)		(245	)
Charge-offs		(398	)		(416	)
Ending Balance	$	19,372		$	19,151

Other

Loans receivable

Schedule of loans receivable

	December 31, 2012			December 31, 2011
	(Dollars in thousands)
Outstanding balance	$	8,859		$	13,541
Allowance for loan losses		(1,083	)		(1,083	)
Capitalized interest and costs		(246	)		(246	)
Carrying amount of loans, net	$	7,530		$	12,212

Schedule of changes in loans receivable

	Year Ended December 31,
	2012			2011
	(Dollars in thousands)
Beginning Balance	$	12,212		$	13,011
Advances		1,592			2,974
Payments received		(3,774	)		(3,838	)
Noncash consideration(1)		(2,500	)		—
Capitalized interest and costs		—			50
Discount accretion, net		—			15
Ending Balance	$	7,530		$	12,212

(1)

Represents a principal reduction on a loan receivable upon FirstCity's acquisition of certain underlying loan collateral from the borrower as partial consideration for repayment. See Note 3 for additional information.