(3) Finance Receivables

12 Months Ended

Dec. 31, 2011

Financing Receivables [Text Block]

(3) Finance Receivables

We consider our portfolio of finance receivables to be homogenous and consist of a single segment and class.  Consequently we analyze credit performance primarily in the aggregate rather than stratification by any particular credit quality indicator.  The following table presents the components of Finance Receivables, net of unearned interest:

	December 31,
	2011			2010
	(In thousands)
Finance Receivables
Automobile finance receivables, net of unearned interest	$	536,773		$	576,090
Less: Unearned acquisition fees and discounts		(20,143	)		(10,469	)
Finance Receivables	$	516,630		$	565,621

We consider an automobile contract delinquent when an obligor fails to make at least 90% of a contractually due payment by the following due date, which date may have been extended within limits specified in the servicing agreements. The period of delinquency is based on the number of days payments are contractually past due. Automobile contracts less than 31 days delinquent are not included.  In cases where the due date may have been extended, the only modification of terms is to advance the obligor’s next due date by one month and extend the maturity date of the receivable by one month.  There are no other concessions such as a reduction in interest rate, forgiveness of principal or of accrued interest.  Accordingly, we consider such extensions to be insignificant delays in payments rather than troubled debt restructurings.  The following table summarizes the delinquency status of finance receivables as of December 31, 2010 and 2011:

	December 31,
	2011		2010
	(In thousands)
Deliquency Status
Current	$	512,802	$	541,375
31 - 60 days		9,344		16,784
61 - 90 days		6,034		9,453
91 + days		8,593		8,478
	$	536,773	$	576,090

Finance receivables totaling $13.0 million and $13.3 million at December 31, 2011 and 2010, respectively, have been placed on non-accrual status as a result of their delinquency status.

The following table presents a summary of the activity for the allowance for credit losses, for the years ended December 31, 2011 and 2010:

	December 31,
	2011			2010
	(In thousands)
Balance at beginning of year	$	13,168			$	38,274
Provision for credit losses		15,508				29,921
Charge-offs		(35,516	)			(82,585	)
Recoveries		17,191				27,558
Balance at end of year	$	10,351			$	13,168

Excluded from finance receivables are contracts that were previously classified as finance receivables but were reclassified as other assets because we have repossessed the vehicle securing the Contract.  The following table presents a summary of such repossessed inventory together with the allowance for losses in repossessed inventory:

	December 31,
	2011			2010
	(In thousands)
Gross balance of repossessions in inventory	$	9,246			$	21,046
Allowance for losses on repossessed inventory		(4,765	)			(16,278	)
Net repossessed inventory included in other assets	$	4,481			$	4,768