10. Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Reconciliation of the acquired finance receivables and related debt measured at fair value on a recurring basis

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
	(in thousands)						(in thousands)
Finance Receivables Measured at Fair Value:
Balance at beginning of period	$	316		$	5,686		$	1,664		$	14,476
Payments on finance receivables at fair value		(181	)		(3,057	)		(1,529	)		(10,930	)
Charge-offs on finance receivables at fair value		–			(184	)		–			(740	)
Discount accretion		–			722			–			353
Mark to fair value		–			35			–			43
Balance at end of period	$	135		$	3,202		$	135		$	3,202
Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of period	$	–		$	5,392		$	1,250		$	13,117
Principal payments on debt at fair value		–			(2,363	)		(1,250	)		(10,917	)
Premium accretion		–			141			–			631
Mark to fair value		–			–			–			339
Balance at end of period		–			3,170			–			3,170
Reduction for payments collected and payable		–			(592	)		–			(592	)
Adjusted balance at end of period	$	–		$	2,578		$	–		$	2,578

Comparision of fair values of the Fireside receivables and the related secured debt

	September 30, 2015				December 31, 2014
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)
Fireside receivables portfolio	$	135	$	135	$	1,664	$	1,664
Debt secured by Fireside receivables portfolio		–		–		–		1,250

Reconciliation for level 3 assets

Financial Instrument		Fair Values as of						Inputs as of
		September 30,		December 31,				September 30,	December 31,
		2015		2014		Valuation Techniques	Unobservable Inputs	2015	2014
		(In thousands)
Assets:
Finance receivables measured at fair value		$	135	$	1,664	Discounted cash flows	Discount rate	15.4%	15.4%
							Cumulative net losses	5.0%	5.0%
							Monthly average prepayments	0.5%	0.5%
Liabilities:
Debt secured by receivables measured at fair value	$		–		1,250	Discounted cash flows	Discount rate	n/a	12.2%

Qualitative information about level 3 fair value measurements

	As of September 30, 2015
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	20,915	$	20,915	$	–	$	–	$	20,915
Restricted cash and equivalents		206,626		206,626		–		–		206,626
Finance receivables, net		1,823,397		–		–		1,808,306		1,808,306
Finance receivables measured at fair value		135		–		–		135		135
Residual interest in securitizations		14		–		–		14		14
Accrued interest receivable		31,807		–		–		31,807		31,807
Liabilities:
Warehouse lines of credit	$	46,934	$	–	$	–	$	46,934	$	46,934
Accrued interest payable		3,205		–		–		3,205		3,205
Residual interest financing		10,572		–		–		10,572		10,572
Securitization trust debt		1,903,578		–		–		1,912,826		1,912,826
Subordinated renewable notes		15,192		–		–		15,192		15,192

Estimated fair values of financial assets and liabilities

	As of December 31, 2014
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	17,859	$	17,859	$	–	$	–	$	17,859
Restricted cash and equivalents		175,382		175,382		–		–		175,382
Finance receivables, net		1,534,496		–		–		1,512,567		1,512,567
Finance receivables measured at fair value		1,664		–		–		1,664		1,664
Residual interest in securitizations		68		–		–		68		68
Accrued interest receivable		23,372		–		–		23,372		23,372
Liabilities:
Warehouse lines of credit	$	56,839	$	–	$	–	$	56,839	$	56,839
Accrued interest payable		2,613		–		–		2,613		2,613
Residual interest financing		12,327		–		–		12,327		12,327
Debt secured by receivables measured at fair value		1,250		–		–		1,250		1,250
Securitization trust debt		1,598,496		–		–		1,619,742		1,619,742
Subordinated renewable notes		15,233		–		–		15,233		15,233