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Finance Receivables, Credit Quality Information, and Allowance for Credit Losses | 12 Months Ended
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Dec. 31, 2017
Receivables [Abstract] |
Finance Receivables, Credit Quality Information, and Allowance for Credit Losses | Note 4. Finance Receivables, Credit Quality Information, and Allowance for Credit Losses Finance receivables for the periods indicated consisted of the following:
|  | December 31, |
In thousands |  | 2017 |  |  | 2016 |
Small loans |  | $ | 375,772 |  |  | $ | 358,471 |
Large loans |  |  | 347,218 |  |  |  | 235,349 |
Automobile loans |  |  | 61,423 |  |  |  | 90,432 |
Retail loans |  |  | 33,050 |  |  |  | 33,523 |
Finance receivables |  | $ | 817,463 |  |  | $ | 717,775 |
The contractual delinquency of the finance receivable portfolio by product and aging for the periods indicated are as follows:
|  | December 31, 2017 |
|  | Small |  |  | Large |  |  | Automobile |  |  | Retail |  |  | Total |
In thousands |  | $ |  |  | % |  |  | $ |  |  | % |  |  | $ |  |  | % |  |  | $ |  |  | % |  |  | $ |  |  | % |
Current |  | $ | 301,114 |  |  |  | 80.1 | % |  | $ | 299,467 |  |  |  | 86.3 | % |  | $ | 43,140 |  |  |  | 70.2 | % |  | $ | 25,730 |  |  |  | 77.8 | % |  | $ | 669,451 |  |  |  | 81.9 | %
1 to 29 days past due |  |  | 39,412 |  |  |  | 10.5 | % |  |  | 29,211 |  |  |  | 8.4 | % |  |  | 13,387 |  |  |  | 21.8 | % |  |  | 4,523 |  |  |  | 13.7 | % |  |  | 86,533 |  |  |  | 10.6 | %
Delinquent accounts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
30 to 59 days |  |  | 9,738 |  |  |  | 2.6 | % |  |  | 5,949 |  |  |  | 1.6 | % |  |  | 2,162 |  |  |  | 3.6 | % |  |  | 879 |  |  |  | 2.7 | % |  |  | 18,728 |  |  |  | 2.2 | %
60 to 89 days |  |  | 8,755 |  |  |  | 2.3 | % |  |  | 4,757 |  |  |  | 1.4 | % |  |  | 1,046 |  |  |  | 1.7 | % |  |  | 739 |  |  |  | 2.2 | % |  |  | 15,297 |  |  |  | 1.9 | %
90 to 119 days |  |  | 6,881 |  |  |  | 1.9 | % |  |  | 3,286 |  |  |  | 1.0 | % |  |  | 701 |  |  |  | 1.1 | % |  |  | 471 |  |  |  | 1.5 | % |  |  | 11,339 |  |  |  | 1.4 | %
120 to 149 days |  |  | 5,284 |  |  |  | 1.4 | % |  |  | 2,537 |  |  |  | 0.7 | % |  |  | 636 |  |  |  | 1.0 | % |  |  | 408 |  |  |  | 1.2 | % |  |  | 8,865 |  |  |  | 1.1 | %
150 to 179 days |  |  | 4,588 |  |  |  | 1.2 | % |  |  | 2,011 |  |  |  | 0.6 | % |  |  | 351 |  |  |  | 0.6 | % |  |  | 300 |  |  |  | 0.9 | % |  |  | 7,250 |  |  |  | 0.9 | %
Total delinquency |  | $ | 35,246 |  |  |  | 9.4 | % |  | $ | 18,540 |  |  |  | 5.3 | % |  | $ | 4,896 |  |  |  | 8.0 | % |  | $ | 2,797 |  |  |  | 8.5 | % |  | $ | 61,479 |  |  |  | 7.5 | %
Total finance receivables |  | $ | 375,772 |  |  |  | 100.0 | % |  | $ | 347,218 |  |  |  | 100.0 | % |  | $ | 61,423 |  |  |  | 100.0 | % |  | $ | 33,050 |  |  |  | 100.0 | % |  | $ | 817,463 |  |  |  | 100.0 | %
Finance receivables in nonaccrual status |  | $ | 16,753 |  |  |  | 4.5 | % |  | $ | 7,834 |  |  |  | 2.3 | % |  | $ | 1,688 |  |  |  | 2.7 | % |  | $ | 1,179 |  |  |  | 3.6 | % |  | $ | 27,454 |  |  |  | 3.4 | %
|  | December 31, 2016 |
|  | Small |  |  | Large |  |  | Automobile |  |  | Retail |  |  | Total |
In thousands |  | $ |  |  | % |  |  | $ |  |  | % |  |  | $ |  |  | % |  |  | $ |  |  | % |  |  | $ |  |  | % |
Current |  | $ | 288,983 |  |  |  | 80.6 | % |  | $ | 204,063 |  |  |  | 86.8 | % |  | $ | 66,936 |  |  |  | 74.0 | % |  | $ | 27,220 |  |  |  | 81.2 | % |  | $ | 587,202 |  |  |  | 81.9 | %
1 to 29 days past due |  |  | 36,533 |  |  |  | 10.2 | % |  |  | 19,172 |  |  |  | 8.1 | % |  |  | 17,196 |  |  |  | 19.0 | % |  |  | 4,205 |  |  |  | 12.5 | % |  |  | 77,106 |  |  |  | 10.7 | %
Delinquent accounts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
30 to 59 days |  |  | 9,408 |  |  |  | 2.6 | % |  |  | 3,948 |  |  |  | 1.7 | % |  |  | 2,654 |  |  |  | 3.0 | % |  |  | 717 |  |  |  | 2.2 | % |  |  | 16,727 |  |  |  | 2.3 | %
60 to 89 days |  |  | 7,110 |  |  |  | 2.0 | % |  |  | 2,920 |  |  |  | 1.2 | % |  |  | 1,171 |  |  |  | 1.3 | % |  |  | 440 |  |  |  | 1.3 | % |  |  | 11,641 |  |  |  | 1.6 | %
90 to 119 days |  |  | 6,264 |  |  |  | 1.8 | % |  |  | 2,271 |  |  |  | 1.0 | % |  |  | 1,110 |  |  |  | 1.2 | % |  |  | 376 |  |  |  | 1.1 | % |  |  | 10,021 |  |  |  | 1.4 | %
120 to 149 days |  |  | 5,424 |  |  |  | 1.5 | % |  |  | 1,710 |  |  |  | 0.7 | % |  |  | 743 |  |  |  | 0.8 | % |  |  | 328 |  |  |  | 1.0 | % |  |  | 8,205 |  |  |  | 1.1 | %
150 to 179 days |  |  | 4,749 |  |  |  | 1.3 | % |  |  | 1,265 |  |  |  | 0.5 | % |  |  | 622 |  |  |  | 0.7 | % |  |  | 237 |  |  |  | 0.7 | % |  |  | 6,873 |  |  |  | 1.0 | %
Total delinquency |  | $ | 32,955 |  |  |  | 9.2 | % |  | $ | 12,114 |  |  |  | 5.1 | % |  | $ | 6,300 |  |  |  | 7.0 | % |  | $ | 2,098 |  |  |  | 6.3 | % |  | $ | 53,467 |  |  |  | 7.4 | %
Total finance receivables |  | $ | 358,471 |  |  |  | 100.0 | % |  | $ | 235,349 |  |  |  | 100.0 | % |  | $ | 90,432 |  |  |  | 100.0 | % |  | $ | 33,523 |  |  |  | 100.0 | % |  | $ | 717,775 |  |  |  | 100.0 | %
Finance receivables in nonaccrual status |  | $ | 16,437 |  |  |  | 4.6 | % |  | $ | 5,246 |  |  |  | 2.2 | % |  | $ | 2,475 |  |  |  | 2.7 | % |  | $ | 941 |  |  |  | 2.8 | % |  | $ | 25,099 |  |  |  | 3.5 | %
The allowance for credit losses consists of general and specific components. Prior to September 30, 2016, the general component reflected estimated credit losses for groups of finance receivables on a collective basis and was primarily based on historical loss rates (adjusted for qualitative factors). Effective September 30, 2016, the general component is primarily based on delinquency roll rates. Delinquency roll rate modeling is forward-looking and common practice in the consumer finance industry. As a result of this change, the Company decreased the provision for credit losses for the year ended December 31, 2016 by $0.5 million, which increased net income by $0.3 million, or $0.03 diluted earnings per share. Changes in the allowance for credit losses for the periods indicated are as follows:
|  | Year Ended December 31, |
In thousands |  | 2017 |  |  | 2016 |  |  | 2015 |
Balance at beginning of period |  | $ | 41,250 |  |  | $ | 37,452 |  |  | $ | 40,511 |
Provision for credit losses |  |  | 77,339 |  |  |  | 63,014 |  |  |  | 47,348 |
Credit losses |  |  | (75,880 | ) |  |  | (64,064 | ) |  |  | (55,043 | )
Recoveries |  |  | 6,201 |  |  |  | 4,848 |  |  |  | 4,636 |
Balance at end of period |  | $ | 48,910 |  |  | $ | 41,250 |  |  | $ | 37,452 |
In September 2017, the Company recorded a $3.0 million increase to the allowance for credit losses related to estimated incremental credit losses on customer accounts impacted by the hurricanes. The incremental hurricane allowance resulted in a decrease to net income of $1.9 million, or $0.16 diluted earnings per share, for the three months ended September 30, 2017. On an annual basis, the Company updates the estimated loss emergence period for each finance receivable type. During 2015, the loss emergence period of large loan finance receivables increased from ten to twelve months as the Company originated longer term loans. As a result, the Company increased the allowance for credit losses by $0.5 million, which decreased net income for the year ended December 31, 2015 by $0.3 million, or $0.02 diluted earnings per share. The increase in the allowance for credit losses due to the change in the loss emergence period was offset by a decrease in the Company’s normal allowance for credit losses on qualitative factors surrounding finance receivables growth and credit quality. The overall large loan allowance for credit losses as a percentage of loans declined from 4.3% to 3.8% as of December 31, 2014 and 2015, respectively. During 2017, the loss emergence period for each finance receivable type changed as follows: small loan finance receivables increased from six to seven months; large loan finance receivables decreased from twelve to ten months; and retail loan finance receivables increased from ten to eleven months. These net changes in the loss emergence periods increased the Company’s total allowance for credit losses by $0.1 million, which decreased net income for the year ended December 31, 2017 by $0.1 million, or $0.01 diluted earnings per share. In December 2015, the Company began selling previously charged-off loans for all products in the portfolio to a third-party debt buyer. The proceeds from these sales were recognized as a recovery in the allowance for credit losses. Recoveries during the year ended December 31, 2015 included $2.0 million from the bulk sale of previously charged-off loans. In January 2016, the Company began selling the flow of charged-off loans. The flow sales are recognized as recoveries in the allowance for credit losses and as a reduction of the provision for credit losses. In September 2017, the Company recognized a recovery of $1.0 million from the bulk sale of previously charged-off customer accounts in bankruptcy. These accounts had been excluded from previous sales of charged-off loans. The following is a reconciliation of the allowance for credit losses by product for the periods indicated:
In thousands |  | Balance January 1, 2017 |  |  | Provision |  |  | Credit Losses |  |  | Recoveries |  |  | Balance December 31, 2017 |  |  | Finance Receivables December 31, 2017 |  |  | Allowance as Percentage of Finance Receivables December 31, 2017 |
Small loans |  | $ | 21,770 |  |  | $ | 45,104 |  |  | $ | (45,612 | ) |  | $ | 3,487 |  |  | $ | 24,749 |  |  | $ | 375,772 |  |  |  | 6.6 | %
Large loans |  |  | 11,460 |  |  |  | 25,024 |  |  |  | (20,088 | ) |  |  | 1,152 |  |  |  | 17,548 |  |  |  | 347,218 |  |  |  | 5.1 | %
Automobile loans |  |  | 5,910 |  |  |  | 4,210 |  |  |  | (7,424 | ) |  |  | 1,329 |  |  |  | 4,025 |  |  |  | 61,423 |  |  |  | 6.6 | %
Retail loans |  |  | 2,110 |  |  |  | 3,001 |  |  |  | (2,756 | ) |  |  | 233 |  |  |  | 2,588 |  |  |  | 33,050 |  |  |  | 7.8 | %
Total |  | $ | 41,250 |  |  | $ | 77,339 |  |  | $ | (75,880 | ) |  | $ | 6,201 |  |  | $ | 48,910 |  |  | $ | 817,463 |  |  |  | 6.0 | %
In thousands |  | Balance January 1, 2016 |  |  | Provision |  |  | Credit Losses |  |  | Recoveries |  |  | Balance December 31, 2016 |  |  | Finance Receivables December 31, 2016 |  |  | Allowance as Percentage of Finance Receivables December 31, 2016 |
Small loans |  | $ | 21,535 |  |  | $ | 41,119 |  |  | $ | (43,797 | ) |  | $ | 2,913 |  |  | $ | 21,770 |  |  | $ | 358,471 |  |  |  | 6.1 | %
Large loans |  |  | 5,593 |  |  |  | 14,261 |  |  |  | (8,946 | ) |  |  | 552 |  |  |  | 11,460 |  |  |  | 235,349 |  |  |  | 4.9 | %
Automobile loans |  |  | 8,828 |  |  |  | 4,785 |  |  |  | (8,886 | ) |  |  | 1,183 |  |  |  | 5,910 |  |  |  | 90,432 |  |  |  | 6.5 | %
Retail loans |  |  | 1,496 |  |  |  | 2,849 |  |  |  | (2,435 | ) |  |  | 200 |  |  |  | 2,110 |  |  |  | 33,523 |  |  |  | 6.3 | %
Total |  | $ | 37,452 |  |  | $ | 63,014 |  |  | $ | (64,064 | ) |  | $ | 4,848 |  |  | $ | 41,250 |  |  | $ | 717,775 |  |  |  | 5.7 | %
In thousands |  | Balance January 1, 2015 |  |  | Provision |  |  | Credit Losses |  |  | Recoveries |  |  | Balance December 31, 2015 |  |  | Finance Receivables December 31, 2015 |  |  | Allowance as Percentage of Finance Receivables December 31, 2015 |
Small loans |  | $ | 25,280 |  |  | $ | 33,428 |  |  | $ | (40,059 | ) |  | $ | 2,886 |  |  | $ | 21,535 |  |  | $ | 338,157 |  |  |  | 6.4 | %
Large loans |  |  | 1,980 |  |  |  | 6,032 |  |  |  | (2,762 | ) |  |  | 343 |  |  |  | 5,593 |  |  |  | 146,553 |  |  |  | 3.8 | %
Automobile loans |  |  | 11,776 |  |  |  | 6,285 |  |  |  | (10,466 | ) |  |  | 1,233 |  |  |  | 8,828 |  |  |  | 116,109 |  |  |  | 7.6 | %
Retail loans |  |  | 1,475 |  |  |  | 1,603 |  |  |  | (1,756 | ) |  |  | 174 |  |  |  | 1,496 |  |  |  | 27,625 |  |  |  | 5.4 | %
Total |  | $ | 40,511 |  |  | $ | 47,348 |  |  | $ | (55,043 | ) |  | $ | 4,636 |  |  | $ | 37,452 |  |  | $ | 628,444 |  |  |  | 6.0 | %
Impaired finance receivables as a percentage of total finance receivables were 2.1% and 1.6% for the years ended December 31, 2017 and 2016, respectively. The following is a summary of finance receivables evaluated for impairment for the periods indicated:
|  | December 31, 2017 |
In thousands |  | Small |  |  | Large |  |  | Automobile |  |  | Retail |  |  | Total |
Impaired receivables specifically evaluated |  | $ | 5,094 |  |  | $ | 10,303 |  |  | $ | 1,724 |  |  | $ | 109 |  |  | $ | 17,230 |
Finance receivables evaluated collectively |  |  | 370,678 |  |  |  | 336,915 |  |  |  | 59,699 |  |  |  | 32,941 |  |  |  | 800,233 |
Finance receivables outstanding |  | $ | 375,772 |  |  | $ | 347,218 |  |  | $ | 61,423 |  |  | $ | 33,050 |  |  | $ | 817,463 |
Impaired receivables in nonaccrual status |  | $ | 707 |  |  | $ | 931 |  |  | $ | 129 |  |  | $ | 31 |  |  | $ | 1,798 |
Amount of the specific reserve for impaired accounts |  | $ | 1,190 |  |  | $ | 2,183 |  |  | $ | 373 |  |  | $ | 20 |  |  | $ | 3,766 |
Amount of the general component of the allowance |  | $ | 23,559 |  |  | $ | 15,365 |  |  | $ | 3,652 |  |  | $ | 2,568 |  |  | $ | 45,144 |
|  | December 31, 2016 |
In thousands |  | Small |  |  | Large |  |  | Automobile |  |  | Retail |  |  | Total |
Impaired receivables specifically evaluated |  | $ | 2,409 |  |  | $ | 6,441 |  |  | $ | 2,460 |  |  | $ | 101 |  |  | $ | 11,411 |
Finance receivables evaluated collectively |  |  | 356,062 |  |  |  | 228,908 |  |  |  | 87,972 |  |  |  | 33,422 |  |  |  | 706,364 |
Finance receivables outstanding |  | $ | 358,471 |  |  | $ | 235,349 |  |  | $ | 90,432 |  |  | $ | 33,523 |  |  | $ | 717,775 |
Impaired receivables in nonaccrual status |  | $ | 288 |  |  | $ | 610 |  |  | $ | 175 |  |  | $ | 7 |  |  | $ | 1,080 |
Amount of the specific reserve for impaired accounts |  | $ | 563 |  |  | $ | 1,216 |  |  | $ | 576 |  |  | $ | 19 |  |  | $ | 2,374 |
Amount of the general component of the allowance |  | $ | 21,207 |  |  | $ | 10,244 |  |  | $ | 5,334 |  |  | $ | 2,091 |  |  | $ | 38,876 |
Average recorded investment in impaired finance receivables for the periods indicated are as follows:
|  | December 31, |
In thousands |  | 2017 |  |  | 2016 |
Small loans |  | $ | 3,946 |  |  | $ | 1,686 |
Large loans |  |  | 8,205 |  |  |  | 4,478 |
Automobile loans |  |  | 2,062 |  |  |  | 2,801 |
Retail loans |  |  | 107 |  |  |  | 114 |
Total average recorded investment |  | $ | 14,320 |  |  | $ | 9,079 |
It is not practical to compute the amount of interest earned on impaired loans.

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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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- References No definition available. + Details
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