v2.4.0.8
Loans to Bank Customers
 6 Months Ended
Jun. 30, 2013
Loans and Leases Receivable Disclosure [Abstract]  
Loans to Bank Customers
Loans to Bank Customers
The following table presents total outstanding loans, gross of the related allowance for loan losses, and a summary of the related payment status:
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More Past Due
 
Total Past Due
 
Total Current or Less Than 30 Days Past Due
 
Total Outstanding
June 30, 2013
(In thousands)
Real estate
$
—

 
$
135

 
$
—

 
$
135

 
$
3,489

 
$
3,624

Commercial
—

 
—

 
—

 
—

 
1,341

 
1,341

Installment
—

 
46

 
41

 
87

 
2,634

 
2,721

Total loans
$
—


$
181

 
$
41

 
$
222

 
$
7,464

 
$
7,686

 
 
 
 
 
 
 
 
 
 
 
 
Percentage of outstanding
—
%
 
2.35
%
 
0.53
%
 
2.89
%
 
97.11
%
 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Real estate
$
91

 
$
—

 
$
—

 
$
91

 
$
3,465

 
$
3,556

Commercial
77

 
—

 
—

 
77

 
1,102

 
1,179

Installment
22

 
3

 
—

 
25

 
3,267

 
3,292

Total loans
$
190

 
$
3

 
$
—

 
$
193

 
$
7,834

 
$
8,027

 
 
 
 
 
 
 
 
 
 
 
 
Percentage of outstanding
2.37
%
 
0.04
%
 
—
%
 
2.40
%
 
97.60
%
 
100.00
%
Nonperforming Loans
The following table presents our nonperforming loans, including impaired loans. See Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2012 for further information on the criteria for classification as nonperforming.
 
June 30, 2013
 
December 31, 2012
 
(In thousands)
Real estate
$
12

 
$
8

Commercial
158

 
244

Installment
104

 
135

Total loans
$
274

 
$
387


Credit Quality Indicators
We closely monitor and assess the credit quality and credit risk of our loan portfolio on an ongoing basis. We continuously review and update loan risk classifications. We evaluate our loans using non-classified or classified as the primary credit quality indicator. Classified loans are those loans that have demonstrated credit weakness where we believe there is a heightened risk of principal loss, including all impaired loans. Classified loans are generally internally categorized as substandard, doubtful or loss consistent with regulatory guidelines.
The table below presents our primary credit quality indicators related to our loan portfolio:
 
June 30, 2013
 
December 31, 2012
 
Non-Classified
 
Classified
 
Non-Classified
 
Classified
 
(In thousands)
Real estate
$
3,318

 
$
306

 
$
3,360

 
$
196

Commercial
1,249

 
92

 
930

 
249

Installment
2,639

 
82

 
3,000

 
292

Total loans
$
7,206

 
$
480

 
$
7,290

 
$
737


Note 5—Loans to Bank Customers (continued)
Impaired Loans and Troubled Debt Restructurings
When, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession for other than an insignificant period of time to a borrower that we would not otherwise consider, the related loan is classified as a Troubled Debt Restructuring, or TDR. The following table presents key information regarding loans that we modified in TDRs as of June 30, 2013 and December 31, 2012. Our TDR modifications related to extensions of the maturity dates at a stated interest rate lower than the current market rate for new debt with similar risk:
 
June 30, 2013
 
December 31, 2012
 
Unpaid Principal Balance
 
Carrying Value
 
Unpaid Principal Balance
 
Carrying Value
 
(In thousands)
Real estate
$
31

 
$
20

 
$
194

 
$
96

Commercial
481

 
199

 
280

 
136

Installment
426

 
175

 
403

 
173


Allowance for Loan Losses
Activity in the allowance for loan losses consisted of the following:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
Balance, beginning of period
$
450

 
$
—

 
$
475

 
$
—

Provision for loans
—

 
310

 
10

 
310

Loans charged off
—

 
—

 
(35
)
 
—

Recoveries of loans previously charged off
$
10

 
$
—

 
$
10

 
$
—

Balance, end of period
$
460

 
$
310

 
$
460

 
$
310