Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 14, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'SPRINGLEAF FINANCE CORP | ' |
Entity Central Index Key | '0000025598 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 10,160,020 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | |
Cash and cash equivalents | $1,919,184 | $374,835 | |
Investment securities | 1,696,870 | 555,614 | |
Net finance receivables: | ' | ' | |
Personal loans (includes loans of consolidated VIEs of $1.8 billion in 2014 and $1.6 billion in 2013) | 3,579,588 | 3,159,932 | |
SpringCastle Portfolio (includes loans of consolidated VIEs of $2.1 billion in 2014) | 2,083,145 | 0 | |
Real estate loans (includes loans of consolidated VIEs of $0 in 2014 and $5.6 billion in 2013) | 655,545 | 7,885,016 | |
Retail sales finance | 56,900 | 98,911 | |
Net finance receivables | 6,375,178 | 11,143,859 | |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $67.8 million in 2014 and $153.1 million in 2013) | -162,440 | -332,195 | |
Net finance receivables, less allowance for finance receivable losses | 6,212,738 | 10,811,664 | |
Finance receivables held for sale | 493,196 | 0 | |
Note receivable from parent | 167,989 | 167,989 | |
Restricted cash (includes restricted cash of consolidated VIEs of $295.7 million in 2014 and $345.9 million in 2013) | 311,425 | 358,759 | |
Other assets | 533,788 | 463,176 | |
Total assets | 11,335,190 | 12,732,037 | |
Liabilities and Shareholder's Equity | ' | ' | |
Long-term debt (includes debt of consolidated VIEs of $3.1 billion in 2014 and $5.2 billion in 2013) | 7,858,037 | [1] | 10,640,728 |
Insurance claims and policyholder liabilities | 430,052 | 394,168 | |
Deferred and accrued taxes | 159,764 | 145,534 | |
Other liabilities | 329,542 | 223,466 | |
Total liabilities | 8,777,395 | 11,403,896 | |
Commitments and contingent liabilities (Note 13) | ' | ' | |
Shareholder's equity: | ' | ' | |
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,020 and 10,160,018 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 5,080 | 5,080 | |
Additional paid-in capital | 740,385 | 422,015 | |
Accumulated other comprehensive income | 34,267 | 28,095 | |
Retained earnings | 1,369,712 | 872,951 | |
Springleaf Finance Corporation shareholder’s equity | 2,149,444 | 1,328,141 | |
Non-controlling interests | 408,351 | 0 | |
Total shareholder’s equity | 2,557,795 | 1,328,141 | |
Total liabilities and shareholder’s equity | $11,335,190 | $12,732,037 | |
[1] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, except Share data, unless otherwise specified | ||||
Personal loans | $3,579,588 | $3,159,932 | ||
SpringCastle Portfolio | 2,083,145 | 0 | ||
Real estate loans | 655,545 | 7,885,016 | ||
Allowance for finance receivable losses | 162,440 | 332,195 | ||
Restricted cash | 311,425 | 358,759 | ||
Long-term debt | 7,858,037 | [1] | 10,640,728 | |
Common Stock, par value (dollars per share) | $0.50 | $0.50 | ||
Common Stock, shares authorized | 25,000,000 | 25,000,000 | ||
Common shares, shares issued | 10,160,020 | 10,160,018 | ||
Common shares, shares outstanding | 10,160,020 | 10,160,018 | ||
Consolidated VIEs | ' | ' | ||
Personal loans | 1,800,000 | 1,600,000 | ||
SpringCastle Portfolio | 2,100,000 | ' | ||
Real estate loans | 0 | 5,600,000 | ||
Allowance for finance receivable losses | 67,800 | 153,084 | ||
Restricted cash | 295,693 | 345,906 | ||
Long-term debt | $3,052,972 | [2] | $5,160,227 | [2] |
[1] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. | |||
[2] | *As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Finance charges | $385,314 | $417,141 | $1,171,994 | $1,233,504 | ||||
Finance receivables held for sale originated as held for investment | 46,502 | ' | 53,744 | ' | ||||
Total interest income | 431,816 | 417,141 | 1,225,738 | 1,233,504 | ||||
Interest expense | 172,492 | 205,270 | 526,035 | 649,861 | ||||
Net interest income | 259,324 | 211,871 | 699,703 | 583,643 | ||||
Provision for finance receivable losses | 92,114 | [1] | 101,390 | [1] | 273,372 | [1] | 260,005 | [1] |
Net interest income after provision for finance receivable losses | 167,210 | 110,481 | 426,331 | 323,638 | ||||
Other revenues: | ' | ' | ' | ' | ||||
Insurance | 44,010 | 38,277 | 125,116 | 107,144 | ||||
Investment | 11,206 | 6,532 | 31,266 | 25,858 | ||||
Net loss on repurchases and repayments of debt | ' | -33,572 | -6,615 | -33,809 | ||||
Net gain on fair value adjustments on debt | 1,523 | ' | 1,523 | ' | ||||
Net gain on sales of real estate loans and related trust assets | 616,534 | [2] | ' | 706,520 | [3] | ' | ||
Other | -10,454 | 5,514 | -3,240 | 20,874 | ||||
Total other revenues | 662,819 | 16,751 | 854,570 | 120,067 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Salaries and benefits | 85,602 | 209,625 | 249,065 | 363,163 | ||||
Other operating expenses | 76,688 | 52,110 | 178,694 | 151,034 | ||||
Insurance losses and loss adjustment expenses | 20,141 | 16,550 | 57,173 | 47,650 | ||||
Total other expenses | 182,431 | 278,285 | 484,932 | 561,847 | ||||
Income (loss) before provision for income taxes | 647,598 | -151,053 | 795,969 | -118,142 | ||||
Provision for income taxes | 219,092 | -57,145 | 275,983 | -44,097 | ||||
Net income (loss) | 428,506 | -93,908 | 519,986 | -74,045 | ||||
Net Income Attributable to Non-controlling Interest | 23,225 | ' | 23,225 | ' | ||||
Net Income (Loss) attributable to Springleaf Finance Corporation | $405,281 | ($93,908) | $496,761 | ($74,045) | ||||
[1] | Components of provision for finance receivable losses on our real estate loans were as follows:(dollars in thousands) Three Months Ended September 30, 2014 Three Months Ended September 30, 2013 Nine Months Ended September 30, 2014 Nine Months Ended September 30, 2013 Revised RevisedReal estate loans Provision for finance receivable losses Non-credit impaired finance receivables $6,376 $17,806 $32,189 $62,781Purchased credit impaired finance receivables 3,011 21,210 28,594 60,511TDR finance receivables 6,725 20,846 41,949 76,665Total $16,112 $59,862 $102,732 $199,957 | |||||||
[2] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the date the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sale of these loans. | |||||||
[3] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $428,506 | ($93,908) | $519,986 | ($74,045) |
Net unrealized gains (losses) on: | ' | ' | ' | ' |
Investment securities on which other-than-temporary impairments were taken | -8 | -17 | -357 | -135 |
All other investment securities | -3,826 | -412 | 15,500 | -10,747 |
Foreign currency translation adjustments | 761 | -2,056 | 267 | 38 |
Net unrealized (gains) losses on: | ' | ' | ' | ' |
Investment securities on which other-than-temporary impairments were taken | 3 | 6 | 125 | 47 |
All other investment securities | 1,340 | 146 | -5,427 | 3,759 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | -1,730 | -2,333 | 10,108 | -7,038 |
Reclassification adjustments included in net income: | ' | ' | ' | ' |
Net realized gains on investment securities | -2,758 | 312 | -6,055 | -1,603 |
Cash flow hedges | ' | ' | ' | -160 |
Income tax effect: | ' | ' | ' | ' |
Net realized gains on investment securities | 965 | -109 | 2,119 | 561 |
Cash flow hedges | ' | ' | ' | 56 |
Reclassification adjustments included in net income, net of tax | -1,793 | 203 | -3,936 | -1,146 |
Other comprehensive income (loss), net of tax | -3,523 | -2,130 | 6,172 | -8,184 |
Comprehensive income (loss) | 424,983 | -96,038 | 526,158 | -82,229 |
Comprehensive income attributable to non-controlling interests | 23,225 | ' | 23,225 | ' |
Comprehensive income | $401,758 | ($96,038) | $502,933 | ($82,229) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Springleaf Finance Corporation Shareholder's Equity | Non-controlling Interests |
In Thousands, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2012 | $1,242,582 | $5,080 | $256,015 | $25,896 | $955,591 | $1,242,582 | ' |
Common shares issued and outstanding | ' | ' | ' | ' | ' | ' | ' |
Capital contributions from parent | 21,000 | ' | 21,000 | ' | ' | 21,000 | ' |
Share-based compensation expense, net of forfeitures | 131,250 | ' | 131,250 | ' | ' | 131,250 | ' |
Change in net unrealized gains: | ' | ' | ' | ' | ' | ' | ' |
Investment securities | -8,118 | ' | ' | -8,118 | ' | -8,118 | ' |
Cash flow hedges | -104 | ' | ' | -104 | ' | -104 | ' |
Foreign currency translation adjustments | 38 | ' | ' | 38 | ' | 38 | ' |
Net income (loss) | -74,045 | ' | ' | ' | -74,045 | -74,045 | ' |
Ending Balance at Sep. 30, 2013 | 1,312,603 | 5,080 | 408,265 | 17,712 | 881,546 | 1,312,603 | ' |
Beginning Balance at Dec. 31, 2013 | 1,328,141 | 5,080 | 422,015 | 28,095 | 872,951 | 1,328,141 | ' |
Common shares issued and outstanding | ' | ' | ' | ' | ' | ' | ' |
Capital contributions from parent | 21,731 | ' | 21,731 | ' | ' | 21,731 | ' |
Capital contribution of capital stock of Springleaf Acquisitions Corporation | 690,284 | ' | 295,691 | ' | ' | 295,691 | 394,593 |
Share-based compensation expense, net of forfeitures | 948 | ' | 948 | ' | ' | 948 | ' |
Distributions declared to joint venture partners | -9,467 | ' | ' | ' | ' | ' | -9,467 |
Change in net unrealized gains: | ' | ' | ' | ' | ' | ' | ' |
Investment securities | 5,905 | ' | ' | 5,905 | ' | 5,905 | ' |
Foreign currency translation adjustments | 267 | ' | ' | 267 | ' | 267 | ' |
Net income (loss) | 519,986 | ' | ' | ' | 496,761 | 496,761 | 23,225 |
Ending Balance at Sep. 30, 2014 | $2,557,795 | $5,080 | $740,385 | $34,267 | $1,369,712 | $2,149,444 | $408,351 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | ||
Cash flows from operating activities | ' | ' | ||
Net income (loss) | $519,986 | ($74,045) | ||
Reconciling adjustments: | ' | ' | ||
Provision for finance receivable losses | 273,372 | [1] | 260,005 | [1] |
Depreciation and amortization | 31,580 | 52,993 | ||
Deferred income tax charge (benefit) | 13,985 | -109,181 | ||
Net gain on fair value adjustments on debt | -1,523 | ' | ||
Net gain on sales of real estate loans and related trust assets | -706,520 | [2] | ' | |
Net charge-offs on finance receivables held for sale | 10,713 | ' | ||
Net loss on repurchases and repayments of debt | 6,615 | 33,809 | ||
Share-based compensation expense, net of forfeitures | 948 | 131,250 | ||
Other | 791 | -445 | ||
Cash flows due to changes in: | ' | ' | ||
Other assets and other liabilities | 76,721 | 90,572 | ||
Insurance claims and policyholder liabilities | 35,884 | 14,917 | ||
Taxes receivable and payable | -66,318 | -46,147 | ||
Accrued interest and finance charges | -11,248 | -29,957 | ||
Restricted cash not reinvested | -17,460 | -5,715 | ||
Other, net | 840 | -824 | ||
Net cash provided by operating activities | 168,366 | 317,232 | ||
Cash flows from investing activities | ' | ' | ||
Finance receivables originated or purchased, net of deferred origination costs | -1,841,088 | -1,631,192 | ||
Principal collections on finance receivables | 1,907,520 | 1,990,405 | ||
Sales and principal collections on finance receivables held for sale originated as held for investment | 3,427,423 | ' | ||
Available-for-sale investment securities purchased | -260,905 | -90,279 | ||
Trading investment securities purchased | -1,064,902 | -6,295 | ||
Available-for-sale investment securities purchased | 209,125 | 176,111 | ||
Trading investment securities purchased | 17,592 | 7,492 | ||
Change in notes receivable from parent and affiliate | ' | -30,750 | ||
Change in restricted cash | 5,241 | -227,213 | ||
Proceeds from sale of real estate owned | 50,791 | 87,747 | ||
Other, net | 4,041 | -12 | ||
Net cash provided by investing activities | 2,454,838 | 276,014 | ||
Cash flows from financing activities | ' | ' | ||
Proceeds from issuance of long-term debt, net of commissions | 672,440 | 3,459,579 | ||
Repayment of long-term debt | -1,763,458 | -4,381,451 | ||
Distributions to joint venture partners | -9,467 | ' | ||
Capital contributions from parent | 21,731 | 21,000 | ||
Net cash used for financing activities | -1,078,754 | -900,872 | ||
Effect of exchange rate changes | -101 | -835 | ||
Net change in cash and cash equivalents | 1,544,349 | -308,461 | ||
Cash and cash equivalents at beginning of period | 374,835 | 1,357,212 | ||
Cash and cash equivalents at end of period | 1,919,184 | 1,048,751 | ||
Supplemental non-cash activities | ' | ' | ||
Transfer of finance receivables to real estate owned | 46,481 | 69,521 | ||
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 6,810,444 | 0 | ||
Springleaf Finance, Inc. contribution of consolidated assets from Springleaf Acquisition Corporation to Springleaf Finance Corporation | 2,342,442 | 0 | ||
Springleaf Finance, Inc. contribution of consolidated liabilities from Springleaf Acquisition Corporation to Springleaf Finance Corporation | 1,652,158 | 0 | ||
Unsettled investment security purchases and sales | $28,432 | $0 | ||
[1] | Components of provision for finance receivable losses on our real estate loans were as follows:(dollars in thousands) Three Months Ended September 30, 2014 Three Months Ended September 30, 2013 Nine Months Ended September 30, 2014 Nine Months Ended September 30, 2013 Revised RevisedReal estate loans Provision for finance receivable losses Non-credit impaired finance receivables $6,376 $17,806 $32,189 $62,781Purchased credit impaired finance receivables 3,011 21,210 28,594 60,511TDR finance receivables 6,725 20,846 41,949 76,665Total $16,112 $59,862 $102,732 $199,957 | |||
[2] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Business and Summary of Significant Accounting Policies | ' |
Business and Summary of Significant Accounting Policies | |
Springleaf Finance Corporation (“SFC” or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our”) is a wholly owned subsidiary of Springleaf Finance, Inc. (“SFI”). | |
In connection with the initial public offering of common stock of Springleaf Holdings, Inc. (“SHI”) on October 21, 2013, SFI became a wholly owned subsidiary of SHI. Therefore, all of SFC’s common stock is indirectly owned by SHI. At September 30, 2014, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 75% of SHI’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”) and AIG Capital Corporation, a subsidiary of American International Group, Inc. (“AIG”). | |
SFC is a financial services holding company with subsidiaries engaged in the consumer finance and credit insurance businesses. | |
BASIS OF PRESENTATION | |
We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by U.S. GAAP. The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), and variable interest entities (“VIEs”) in which we hold a controlling financial interest as of the financial statement date. | |
We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. These statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (“2013 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting. | |
Prior Period Revisions | |
As disclosed in our 2013 Annual Report on Form 10-K, we identified certain out-of-period errors in preparing our annual consolidated financial statements for the year ended December 31, 2013. In addition to these errors, we had previously recorded and disclosed out-of-period adjustments in prior reporting periods when the errors were discovered. As a result, we revised all previously reported periods included in our 2013 Annual Report on Form 10-K. Similarly, we have revised all previously reported periods included in this report. We corrected the errors identified in the fourth quarter of 2013 and included these corrections in the appropriate prior periods. In addition, we reversed all out-of period adjustments previously recorded and disclosed, and included the adjustments in the appropriate periods. After evaluating the quantitative and qualitative aspects of these corrections, we have determined that our previous quarterly condensed financial statements and our annual consolidated financial statements were not materially misstated. | |
See Note 17 for further information on the prior period revisions. | |
In addition, during the first quarter of 2014, we identified that the disclosure of the allowance for finance receivable losses related to our securitized finance receivables at December 31, 2013, was previously incorrectly overstated by $26.8 million. The parenthetical disclosure of the allowance of consolidated VIEs as of December 31, 2013 on our condensed consolidated balance sheet and the related VIE disclosures in Notes 3 and 9 have been revised in this report to $153.1 million. | |
During the second quarter of 2014, we discovered that we incorrectly disclosed the carrying values at the date of sale of the real estate loans associated with the 2009-1 securitization and certain additional real estate loans sold on March 31, 2014. The affected carrying values have been corrected in Notes 1, 3, and 4 in this report as follows: (i) the carrying value of real estate loans associated with the 2009-1 securitization that were sold on March 31, 2014, was previously reported as $742.0 million but has been corrected to be $724.9 million and (ii) the carrying value of additional real estate loans sold on March 31, 2014, was previously reported as $93.3 million but has been corrected to be $89.9 million. | |
After evaluating the quantitative and qualitative aspects of these corrections (individually and in the aggregate), management has determined that our previously issued interim and annual consolidated financial statements were not materially misstated. | |
Fortress Acquisition | |
Due to the significance of the ownership interest acquired by FCFI Acquisition LLC, an affiliate of Fortress, (the “Fortress Acquisition”), the nature of the transaction, and at the direction of our acquirer, we applied push-down accounting to SFC as an acquired business. We revalued our assets and liabilities based on their fair values at the date of the Fortress Acquisition, November 30, 2010, in accordance with business combination accounting standards (“push-down accounting”). | |
SIGNIFICANT REAL ESTATE LOAN TRANSACTIONS | |
In the third quarter of 2014, we entered into a series of transactions relating to the sales of our beneficial interests in our non-core real estate loans, the related servicing of these loans, and the sales of certain performing and non-performing real estate loans. The Securitization Assets Sale, the MSR Sale, and the September Whole Loan Sales are each defined below and are collectively referred to as the “Asset Sale.” The Asset Sale, along with the real estate transactions that were completed in the first half of 2014 (the “Prior Dispositions”) substantially complete the Company’s previously disclosed plan to liquidate its non-core real estate loans. | |
In conjunction with these real estate loan transactions, we have closed our servicing centers in Dallas, Texas, Rancho Cucamonga, California, and Wesley Chapel, Florida, and have eliminated certain staff positions in our Evansville, Indiana, location. In total, approximately 300 staff positions were eliminated. However, the total reduction in workforce was approximately 170 employees, as 130 employees have been transferred into other positions at Springleaf. We recorded restructuring costs of $4.3 million in the third quarter of 2014 due to the workforce reductions and the closings of the servicing facilities. | |
Our insurance subsidiaries have written certain insurance policies on properties collateralizing the loans that have been deconsolidated or disposed of as a result of these sales. As part of the disposition, the insurance policies associated with the sold loans have been or will be cancelled. | |
The “Securitization Assets Sale” | |
On August 6, 2014, SFC and Eighth Street Funding, LLC, Eleventh Street Funding, LLC, Twelfth Street Funding, LLC, Fourteenth Street Funding, LLC, Fifteenth Street Funding, LLC, Seventeenth Street Funding, LLC, and Nineteenth Street Funding, LLC (each a wholly owned subsidiary of SFC and collectively, the “Depositors”) entered into an agreement to sell, subject to certain closing conditions, certain notes and trust certificates (collectively, the “Securities”) backed by mortgage loans of the Springleaf Mortgage Loan Trust (“SMLT”) 2011-1, SMLT 2012-1, SMLT 2012-2, SMLT 2012-3, SMLT 2013-1, SMLT 2013-2, and SMLT 2013-3 (each, a “Trust”, and the issuance of the Securities by each Trust, a “Springleaf Transaction”) to Credit Suisse Securities (USA) LLC and its affiliates (“Credit Suisse”). The agreement also included the sale of the rights to receive any funds remaining in the reserve account established for each Springleaf Transaction, and certain related rights, representing substantially all of the Company’s remaining interests in the Trusts, to Credit Suisse. | |
On August 1, 2014, the real estate loans included in the transaction were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. The Depositors completed this transaction on August 29, 2014, at which time, the real estate loans included in the transaction had a carrying value of $4.0 billion (after the basis adjustment for the related allowance for finance receivable losses). The purchase price for the Securitization Asset Sale was $1.6 billion. As a result of the sale, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | |
The “MSR Sale” | |
Additionally, in a separate transaction on August 6, 2014, SFC and its wholly owned subsidiary, MorEquity, Inc. (“MorEquity”) (collectively, the “Sellers”), entered into a Mortgage Servicing Rights Purchase and Sale Agreement, dated and effective as of August 1, 2014, with Nationstar Mortgage LLC (“Nationstar”), pursuant to which the Sellers agreed to sell to Nationstar all of their rights and responsibilities as servicer, primary servicer, and/or master servicer of the mortgage loans primarily underlying the Sellers’ securitizations completed in 2011, 2012 and 2013 (each a “Pool” and collectively, the “Pools”) with an aggregate unpaid principal balance (“UPB”) of approximately $5 billion. Additionally, Nationstar agreed to assume on and after the effective date, all of the Sellers’ rights and responsibilities as servicer, primary servicer and/or master servicer, as applicable, for each Pool arising and to be performed on and after the sale date, which include, among other things, the right to receive the related servicing fee on a monthly basis. | |
The purchase price for the MSR Sale was $38.8 million. Approximately 50% of the proceeds of the MSR Sale were received on August 29, 2014, the closing date, and 40% of the proceeds of the MSR Sale were received on October 23, 2014. The remaining 10% is subject to a holdback for resolution of missing documentation and other customary conditions, and is expected to be received no later than 120 days after the date of transfer of servicing upon resolution of those conditions. See Note 19 for further information on the subsequent payment received from Nationstar on October 23, 2014. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | |
The servicing for each Pool was transferred on September 30, 2014. From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, the Company continued to service certain loans on behalf of Nationstar under an interim servicing agreement. | |
The “September Whole Loan Sales” | |
On August 6, 2014, SFC and Credit Suisse agreed to the terms of sale of certain performing and non-performing mortgage loans by certain indirect subsidiaries of SHI (referred to herein as the “Probable Whole Loan Sales”). On August 1, 2014, the real estate loans included in the Probable Whole Loan Sales were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. We completed the sale of a portion of the Probable Whole Loan Sales on September 30, 2014 (the “September Whole Loan Sales”) at which time, the real estate loans included in the September Whole Loan Sales had a carrying value of $768.6 million (after the basis adjustment for the related allowance for finance receivable losses). | |
The aggregate purchase price of $795.1 million for the September Whole Loan Sales included a holdback provision of $120 million of which $40 million was subject to finalization of the terms and conditions of administering the holdback and the remainder was subject to our ability to cure certain documentation deficiencies within the 60 day period (subject to extension under certain circumstances) subsequent to the closing of the sale. See Note 19 for further information on the subsequent payments received from Credit Suisse on October 16 and November 7, 2014. | |
Prior Dispositions | |
The “Prior Dispositions” included the following transactions: | |
The “Sixth Street Disposition”. On May 23, 2014, Sixth Street Funding LLC (“Sixth Street”), a wholly owned subsidiary of SFC, agreed to sell and transfer its beneficial interests in the mortgage-backed retained certificates related to a securitization transaction completed in 2010 to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”) for a purchase price of $263.7 million. On June 1, 2014, the real estate loans included in the transaction were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. Sixth Street completed this transaction on June 30, 2014, at which time, the real estate loans included in the transaction had a carrying value of $444.4 million (after the basis adjustment for the related allowance for finance receivable losses). As a result of the sale, we deconsolidated the securitization trust holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | |
The “Third Street Disposition”. On March 6, 2014, Third Street Funding LLC (“Third Street”), a wholly owned subsidiary of SFC, agreed to sell and transfer its beneficial interests in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to MLPFS for a purchase price of $737.2 million. On March 1, 2014, the real estate loans included in the transaction were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. Third Street completed this transaction on March 31, 2014, at which time, the real estate loans included in the transaction had a carrying value of $724.9 million (after the basis adjustment for the related allowance for finance receivable losses). As a result of the sale, we deconsolidated the securitization trust holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | |
The “MorEquity Disposition”. On March 7, 2014, MorEquity entered into an agreement to sell, subject to certain closing conditions, certain performing and non-performing real estate loans for a purchase price of $79.0 million. On March 1, 2014, these loans were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. MorEquity completed this sale on March 31, 2014, at which time, the real estate loans included in the transaction had a carrying value of $89.9 million (after the basis adjustment for the related allowance for finance receivable losses). | |
CAPITAL CONTRIBUTION TO SFC | |
On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of its wholly owned subsidiary, Springleaf Acquisitions Corporation (“SAC”) representing all of the issued and outstanding shares of capital stock of SAC (the “SAC Capital Contribution”). SAC consists primarily of a 47% investment in a joint venture formed to acquire consumer loans in 2013. At July 31, 2014, SAC held consolidated total assets of $2.3 billion, total liabilities of $1.7 billion and equity of $691.0 million, including a non-controlling interest of $394.6 million. Consistent with the contribution of assets and liabilities to an entity in a controlled group, SAC’s assets and liabilities were contributed to SFC at their carrying value as of July 31, 2014, with its results of operations reflected prospectively. | |
ACCOUNTING PRONOUNCEMENTS ADOPTED | |
Income Taxes | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”), ASU 2013-11, Income Taxes (Topic 740), which clarifies the presentation requirements of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU became effective prospectively for the Company for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this ASU did not have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED | |
Troubled Debt Restructurings | |
In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. We are currently evaluating whether the adoption of this ASU will have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
Revenue from Contracts | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Many of our revenue sources are not within the scope of this new standard and we are currently evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
Share-based Payments | |
In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period, which clarifies that performance targets within share-based payment awards that can be met after the requisite service period should be considered performance conditions that affect vesting. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. We have evaluated this ASU and concluded that it is not applicable to the Company at this time. | |
Going Concern | |
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern for each annual and interim reporting period, and disclose in its financial statements whether there is substantial doubt about the company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The new standard applies to all companies and is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. The new standard can also be early adopted. Upon adoption, we will perform the going concern assessment in accordance with the requirements of the new ASU. | |
ACCOUNTING POLICY ELECTIONS | |
We made certain policy elections with regard to the issuance of long-term debt related to a consumer loan securitization completed on March 26, 2014 (the “2014-A securitization”) and have updated our long-term debt policy previously disclosed in our 2013 Annual Report on Form 10-K to reflect these elections going forward. The updated long-term debt policy is presented below: | |
Long-term Debt | |
We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount or unamortized premium associated with the debt. We make policy elections on a security by security basis with regard to the methodology used to accrete discounts and premiums. Other than securitized products, we generally accrete discounts and premiums over the contractual life of the security using contractual payment terms. With respect to securitized products, we have historically elected to use estimated prepayment patterns adjusted for changes in estimate over the estimated life of the debt. However, in certain circumstances, including our policy election for the 2014-A securitization, we elect to amortize deferred items over the contractual life of the security. Under either treatment, such accretion is recorded to interest expense. Additionally, we generally accrete other deferred amounts (e.g. issuance costs) following the same method elected on the associated unaccreted discount or premium. |
Finance_Receivables
Finance Receivables | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||
Finance Receivables | ' | ||||||||||||||||||||
Finance Receivables | |||||||||||||||||||||
Our finance receivable types include personal loans, the SpringCastle Portfolio, real estate loans, and retail sales finance as defined below: | |||||||||||||||||||||
• | Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, generally have maximum original terms of four years, and are usually fixed-rate, fixed-term loans. At September 30, 2014, $1.7 billion of personal loans, or 48%, were secured by collateral consisting of titled personal property (such as automobiles), $1.3 billion, or 37%, were secured by consumer household goods or other items of personal property, and the remainder was unsecured. | ||||||||||||||||||||
• | SpringCastle Portfolio — are loans jointly acquired from HSBC Finance Corporation and certain of its affiliates (collectively, “HSBC”) on April 1, 2013 through a joint venture in which SFC owns a 47% equity interest as a result of the SAC Capital Contribution on July 31, 2014, as previously discussed in Note 1. These loans include unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). The SpringCastle Portfolio includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans. | ||||||||||||||||||||
• | Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months, and are considered non-conforming. At September 30, 2014, $234.1 million of real estate loans, or 36%, were secured by first mortgages and $421.5 million, or 64%, were secured by second mortgages. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. | ||||||||||||||||||||
• | Retail sales finance — includes retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant. Retail sales contracts are secured by the personal property designated in the contract and generally have maximum original terms of 60 months. Revolving retail accounts are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. In January 2013, we ceased purchasing retail sales contracts and revolving retail accounts. | ||||||||||||||||||||
Components of net finance receivables by type were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Gross receivables* | $ | 4,181,830 | $ | 2,067,719 | $ | 653,101 | $ | 62,342 | $ | 6,964,992 | |||||||||||
Unearned finance charges and points and fees | (696,225 | ) | — | (3,260 | ) | (5,922 | ) | (705,407 | ) | ||||||||||||
Accrued finance charges | 52,294 | 15,426 | 5,625 | 480 | 73,825 | ||||||||||||||||
Deferred origination costs | 41,689 | — | 79 | — | 41,768 | ||||||||||||||||
Total | $ | 3,579,588 | $ | 2,083,145 | $ | 655,545 | $ | 56,900 | $ | 6,375,178 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Gross receivables* | $ | 3,632,462 | $ | — | $ | 7,843,787 | $ | 108,457 | $ | 11,584,706 | |||||||||||
Unearned finance charges and points and fees | (559,902 | ) | — | (1,208 | ) | (10,444 | ) | (571,554 | ) | ||||||||||||
Accrued finance charges | 48,008 | — | 42,163 | 898 | 91,069 | ||||||||||||||||
Deferred origination costs | 39,364 | — | 274 | — | 39,638 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
* | Gross receivables are defined as follows: | ||||||||||||||||||||
• | finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value; | ||||||||||||||||||||
• | finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and | ||||||||||||||||||||
• | purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. | ||||||||||||||||||||
Included in the table above are personal loans with a carrying value of $1.8 billion at September 30, 2014 and $1.6 billion at December 31, 2013 and SpringCastle Portfolio loans with a carrying value of $2.1 billion at September 30, 2014 associated with securitizations that remain on our balance sheet. Also included in the table above are real estate loans with a carrying value of $5.6 billion at December 31, 2013 associated with mortgage securitizations that have been sold or transferred to finance receivables held for sale during the nine months ended September 30, 2014. See Note 1 for further information on these sales. The carrying value of consolidated long-term debt associated with securitizations totaled $3.1 billion at September 30, 2014 and $5.2 billion at December 31, 2013. See Note 9 for further discussion regarding our securitization transactions. Also included in the table above are finance receivables with a carrying value of $1.0 billion at December 31, 2013, which were pledged as collateral for our secured term loan that we fully repaid in March 2014. See Note 8 for further discussion of the repayment of our secured term loan. | |||||||||||||||||||||
Unused lines of credit extended to customers by the Company were as follows: | |||||||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Personal loans | $ | 1,462 | $ | 4,996 | |||||||||||||||||
SpringCastle Portfolio | 357,914 | — | |||||||||||||||||||
Real estate loans | 30,437 | 32,338 | |||||||||||||||||||
Total | $ | 389,813 | $ | 37,334 | |||||||||||||||||
Unused lines of credit on our personal loans can be suspended if one of the following occurs: the value of the collateral declines significantly; we believe the borrower will be unable to fulfill the repayment obligations; or any other default by the borrower of any material obligation under the agreement. Unused lines of credit on our real estate loans and the SpringCastle Portfolio secured by subordinate residential real estate mortgages can be suspended if one of the following occurs: (1) the value of the real estate declines significantly below the property’s initial appraised value; (2) we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or (3) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on home equity lines of credit, including the SpringCastle Portfolio secured by subordinate residential real estate mortgages, can be terminated for delinquency. Unused lines of credit on the unsecured loans of the SpringCastle Portfolio can be terminated at our discretion. | |||||||||||||||||||||
CREDIT QUALITY INDICATORS | |||||||||||||||||||||
We consider the delinquency status and nonperforming status of the finance receivable as our credit quality indicators. | |||||||||||||||||||||
We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. We had $0.1 million of revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at September 30, 2014, compared to $0.4 million at December 31, 2013. Our personal loans, SpringCastle Portfolio, and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges. | |||||||||||||||||||||
Delinquent Finance Receivables | |||||||||||||||||||||
We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time. | |||||||||||||||||||||
The following is a summary of net finance receivables by type and by days delinquent: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 31,932 | $ | 33,379 | $ | 13,151 | $ | 770 | $ | 79,232 | |||||||||||
90-119 days past due | 25,427 | 20,955 | 7,842 | 429 | 54,653 | ||||||||||||||||
120-149 days past due | 20,938 | 15,826 | 5,629 | 558 | 42,951 | ||||||||||||||||
150-179 days past due | 16,592 | 13,102 | 5,557 | 303 | 35,554 | ||||||||||||||||
180 days or more past due | 1,088 | 4,946 | 12,098 | 46 | 18,178 | ||||||||||||||||
Total delinquent finance receivables | 95,977 | 88,208 | 44,277 | 2,106 | 230,568 | ||||||||||||||||
Current | 3,430,849 | 1,932,945 | 588,886 | 53,522 | 6,006,202 | ||||||||||||||||
30-59 days past due | 52,762 | 61,992 | 22,382 | 1,272 | 138,408 | ||||||||||||||||
Total | $ | 3,579,588 | $ | 2,083,145 | $ | 655,545 | $ | 56,900 | $ | 6,375,178 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 28,297 | $ | — | $ | 96,778 | $ | 1,290 | $ | 126,365 | |||||||||||
90-119 days past due | 22,648 | — | 67,966 | 1,017 | 91,631 | ||||||||||||||||
120-149 days past due | 18,662 | — | 54,882 | 757 | 74,301 | ||||||||||||||||
150-179 days past due | 14,618 | — | 45,040 | 740 | 60,398 | ||||||||||||||||
180 days or more past due | 934 | — | 353,003 | 173 | 354,110 | ||||||||||||||||
Total delinquent finance receivables | 85,159 | — | 617,669 | 3,977 | 706,805 | ||||||||||||||||
Current | 3,027,460 | — | 7,092,107 | 92,093 | 10,211,660 | ||||||||||||||||
30-59 days past due | 47,313 | — | 175,240 | 2,841 | 225,394 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
Nonperforming Finance Receivables | |||||||||||||||||||||
We also monitor finance receivable performance trends to evaluate the potential risk of future credit losses. At 90 days or more past due, we consider our finance receivables to be nonperforming. Once the finance receivables are considered as nonperforming, we consider them to be at increased risk for credit loss. | |||||||||||||||||||||
Our performing and nonperforming net finance receivables by type were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Performing | $ | 3,515,543 | $ | 2,028,316 | $ | 624,419 | $ | 55,564 | $ | 6,223,842 | |||||||||||
Nonperforming | 64,045 | 54,829 | 31,126 | 1,336 | 151,336 | ||||||||||||||||
Total | $ | 3,579,588 | $ | 2,083,145 | $ | 655,545 | $ | 56,900 | $ | 6,375,178 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Performing | $ | 3,103,070 | $ | — | $ | 7,364,125 | $ | 96,224 | $ | 10,563,419 | |||||||||||
Nonperforming | 56,862 | — | 520,891 | 2,687 | 580,440 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES | |||||||||||||||||||||
As a result of the Fortress Acquisition, we applied push-down accounting and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value on November 30, 2010. | |||||||||||||||||||||
In connection with the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio (the “SCP Loans”), which were determined to be credit impaired when SAC acquired the SCP Loans on April 1, 2013. | |||||||||||||||||||||
We include the carrying amount of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses. Prepayments reduce the outstanding balance, contractual cash flows, and cash flows expected to be collected. | |||||||||||||||||||||
We report finance receivables held for sale of $493.2 million at September 30, 2014, which consist of our non-core real estate loans. See Note 4 for further information on our finance receivables held for sale. At September 30, 2014, finance receivables held for sale include purchased credit impaired real estate loans, as well as troubled debt restructured (“TDR”) real estate loans. Therefore, we are presenting the financial information for the purchased credit impaired finance receivables and the TDR finance receivables by finance receivables held for investment and finance receivables held for sale in the tables below. | |||||||||||||||||||||
Information regarding these purchased credit impaired finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | SCP Loans | FA Loans | Total | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Carrying amount, net of allowance (a) | $ | 370,967 | $ | 191,714 | $ | 562,681 | |||||||||||||||
Outstanding balance (b) | $ | 682,389 | $ | 300,128 | $ | 982,517 | |||||||||||||||
Allowance for purchased credit impaired finance receivable losses | $ | — | $ | 4,513 | $ | 4,513 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying amount, net of allowance | $ | — | $ | 1,250,621 | $ | 1,250,621 | |||||||||||||||
Outstanding balance | $ | — | $ | 1,782,271 | $ | 1,782,271 | |||||||||||||||
Allowance for purchased credit impaired finance receivable losses | $ | — | $ | 57,261 | $ | 57,261 | |||||||||||||||
(a) | The carrying amount of purchased credit impaired finance receivables at September 30, 2014 includes $165.5 million of purchased credit impaired finance receivables held for sale. | ||||||||||||||||||||
(b) | The outstanding balance of purchased credit impaired finance receivables at September 30, 2014 includes $246.1 million of purchased credit impaired finance receivables held for sale. | ||||||||||||||||||||
The allowance for purchased credit impaired finance receivable losses at September 30, 2014 and December 31, 2013, reflected the net carrying value of these purchased credit impaired finance receivables being higher than the present value of the expected cash flows. | |||||||||||||||||||||
Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | SCP Loans | FA Loans | Total | ||||||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 622,956 | $ | 622,956 | |||||||||||||||
Accretable yield for SpringCastle Portfolio contributed to SFC (a) | 259,944 | — | 259,944 | ||||||||||||||||||
Accretion (b) | (10,327 | ) | (20,617 | ) | (30,944 | ) | |||||||||||||||
Transfers due to finance receivables sold | — | (559,250 | ) | (559,250 | ) | ||||||||||||||||
Disposals of finance receivables (c) | (3,196 | ) | (3,638 | ) | (6,834 | ) | |||||||||||||||
Balance at end of period | $ | 246,421 | $ | 39,451 | $ | 285,872 | |||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 844,018 | $ | 844,018 | |||||||||||||||
Accretion | — | (32,041 | ) | (32,041 | ) | ||||||||||||||||
Reclassifications from nonaccretable difference (d) | — | 2,740 | 2,740 | ||||||||||||||||||
Disposals of finance receivables (c) | — | (8,337 | ) | (8,337 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 806,380 | $ | 806,380 | |||||||||||||||
At or for the Nine Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 766,927 | $ | 766,927 | |||||||||||||||
Accretable yield for SpringCastle Portfolio contributed to SFC (a) | 259,944 | — | 259,944 | ||||||||||||||||||
Accretion (b) | (10,327 | ) | (75,831 | ) | (86,158 | ) | |||||||||||||||
Transfers due to finance receivables sold | — | (636,888 | ) | (636,888 | ) | ||||||||||||||||
Disposals of finance receivables (c) | (3,196 | ) | (14,757 | ) | (17,953 | ) | |||||||||||||||
Balance at end of period | $ | 246,421 | $ | 39,451 | $ | 285,872 | |||||||||||||||
At or for the Nine Months Ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 624,879 | $ | 624,879 | |||||||||||||||
Accretion | — | (97,036 | ) | (97,036 | ) | ||||||||||||||||
Reclassifications from nonaccretable difference (d) | — | 303,328 | 303,328 | ||||||||||||||||||
Disposals of finance receivables (c) | — | (24,791 | ) | (24,791 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 806,380 | $ | 806,380 | |||||||||||||||
(a) | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | ||||||||||||||||||||
(b) | Accretion on our purchased credit impaired finance receivables for the three and nine months ended September 30, 2014 includes $11.1 million and $11.3 million, respectively, of accretion on purchased credit impaired finance receivables held for sale, which is reported as interest income on finance receivables held for sale originated as held for investment. | ||||||||||||||||||||
(c) | Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged-off during the period. | ||||||||||||||||||||
(d) | Reclassifications from (to) nonaccretable difference represent the increases (decreases) in accretion resulting from higher (lower) estimated undiscounted cash flows. | ||||||||||||||||||||
TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES | |||||||||||||||||||||
Information regarding TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | Real Estate Loans | ||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
TDR gross finance receivables (a) (b) | $ | 334,141 | |||||||||||||||||||
TDR net finance receivables (c) | $ | 335,512 | |||||||||||||||||||
Allowance for TDR finance receivable losses | $ | 31,205 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
TDR gross finance receivables (a) | $ | 1,366,346 | |||||||||||||||||||
TDR net finance receivables | $ | 1,371,321 | |||||||||||||||||||
Allowance for TDR finance receivable losses | $ | 177,011 | |||||||||||||||||||
(a) | As defined earlier in this Note. | ||||||||||||||||||||
(b) | TDR gross finance receivables at September 30, 2014 include $230.7 million of TDR finance receivables held for sale. | ||||||||||||||||||||
(c) | TDR net finance receivables at September 30, 2014 includes $231.6 million of TDR finance receivables held for sale. | ||||||||||||||||||||
We have no commitments to lend additional funds on our TDR finance receivables. | |||||||||||||||||||||
TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
TDR average net receivables (a) | $ | 797,418 | $ | 1,200,178 | $ | 1,187,138 | $ | 1,052,653 | |||||||||||||
TDR finance charges recognized (b) | $ | 10,005 | $ | 16,841 | $ | 44,505 | $ | 45,791 | |||||||||||||
(a) | TDR average net receivables for the three and nine months ended September 30, 2014 include $413.0 million of TDR average net receivables held for sale, which reflect a two-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. | ||||||||||||||||||||
(b) | TDR finance charges recognized for the three and nine months ended September 30, 2014 include $3.1 million of interest income on TDR finance receivables held for sale. | ||||||||||||||||||||
The impact of the transfers of finance receivables held for investment to finance receivables held for sale and the subsequent sales of finance receivables held for sale during the first half of 2014 was immaterial since the loans were transferred and sold within the same months. | |||||||||||||||||||||
Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Number of TDR accounts (a) | 403 | 1,461 | 2,290 | 5,762 | |||||||||||||||||
Pre-modification TDR net finance receivables (b) | $ | 28,401 | $ | 131,969 | $ | 209,360 | $ | 450,276 | |||||||||||||
Post-modification TDR net finance receivables (b) | $ | 29,889 | $ | 139,830 | $ | 199,353 | $ | 472,724 | |||||||||||||
(a) | Number of new TDR accounts for the three and nine months ended September 30, 2014 includes 89 new TDR accounts that were held for sale. | ||||||||||||||||||||
(b) | TDR net finance receivables for the three and nine months ended September 30, 2014 include $6.0 million of pre-modification and $6.6 million of post-modification TDR net finance receivables held for sale. | ||||||||||||||||||||
Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Number of TDR accounts (a) | 54 | 369 | 488 | 796 | |||||||||||||||||
TDR net finance receivables (a) (b) | $ | 2,788 | $ | 25,758 | $ | 31,465 | $ | 59,719 | |||||||||||||
(a) | Number and amount of TDR net finance receivables for the three and nine months ended September 30, 2014 that defaulted during the previous 12 month period include 30 TDR accounts that were held for sale totaling $1.8 million. | ||||||||||||||||||||
(b) | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance_for_Finance_Receivab
Allowance for Finance Receivable Losses | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Loans and Leases Receivable, Allowance [Abstract] | ' | ||||||||||||||||||||
Allowance for Finance Receivable Losses | ' | ||||||||||||||||||||
Allowance for Finance Receivable Losses | |||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Consolidated Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 106,249 | $ | — | $ | 258,897 | $ | 1,350 | $ | 366,496 | |||||||||||
Provision for finance receivable losses (a) | 57,260 | 18,073 | 16,112 | 669 | 92,114 | ||||||||||||||||
Charge-offs | (47,272 | ) | (20,300 | ) | (13,291 | ) | (1,199 | ) | (82,062 | ) | |||||||||||
Recoveries | 7,056 | 1,836 | 963 | 374 | 10,229 | ||||||||||||||||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b) | — | — | (225,047 | ) | — | (225,047 | ) | ||||||||||||||
Allowance for SpringCastle Portfolio contributed to SFC (c) | — | 710 | — | — | 710 | ||||||||||||||||
Balance at end of period | $ | 123,293 | $ | 319 | $ | 37,634 | $ | 1,194 | $ | 162,440 | |||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||
Balance at beginning of period | $ | 60,250 | $ | — | $ | 180,458 | $ | 920 | $ | 241,628 | |||||||||||
Provision for finance receivable losses (a) | 39,685 | — | 59,862 | 1,843 | 101,390 | ||||||||||||||||
Charge-offs | (32,527 | ) | — | (32,989 | ) | (2,032 | ) | (67,548 | ) | ||||||||||||
Recoveries | 2,135 | — | 1,324 | 294 | 3,753 | ||||||||||||||||
Balance at end of period | $ | 69,543 | $ | — | $ | 208,655 | $ | 1,025 | $ | 279,223 | |||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Provision for finance receivable losses (a) | 149,904 | 18,073 | 102,732 | 2,663 | 273,372 | ||||||||||||||||
Charge-offs | (138,492 | ) | (20,300 | ) | (67,189 | ) | (4,310 | ) | (230,291 | ) | |||||||||||
Recoveries (d) | 17,558 | 1,836 | 5,785 | 1,001 | 26,180 | ||||||||||||||||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b) | — | — | (239,726 | ) | — | (239,726 | ) | ||||||||||||||
Allowance for SpringCastle Portfolio contributed to SFC (c) | — | 710 | — | — | 710 | ||||||||||||||||
Balance at end of period | $ | 123,293 | $ | 319 | $ | 37,634 | $ | 1,194 | $ | 162,440 | |||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||
Balance at beginning of period | $ | 66,580 | $ | — | $ | 113,861 | $ | 2,260 | $ | 182,701 | |||||||||||
Provision for finance receivable losses (a) | 64,282 | — | 199,957 | (4,234 | ) | 260,005 | |||||||||||||||
Charge-offs (e) | (106,161 | ) | — | (120,751 | ) | (7,338 | ) | (234,250 | ) | ||||||||||||
Recoveries (f) | 44,842 | — | 15,588 | 10,337 | 70,767 | ||||||||||||||||
Balance at end of period | $ | 69,543 | $ | — | $ | 208,655 | $ | 1,025 | $ | 279,223 | |||||||||||
(a) | Components of provision for finance receivable losses on our real estate loans were as follows: | ||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Real estate loans | |||||||||||||||||||||
Provision for finance receivable losses | |||||||||||||||||||||
Non-credit impaired finance receivables | $ | 6,376 | $ | 17,806 | $ | 32,189 | $ | 62,781 | |||||||||||||
Purchased credit impaired finance receivables | 3,011 | 21,210 | 28,594 | 60,511 | |||||||||||||||||
TDR finance receivables | 6,725 | 20,846 | 41,949 | 76,665 | |||||||||||||||||
Total | $ | 16,112 | $ | 59,862 | $ | 102,732 | $ | 199,957 | |||||||||||||
(b) | During the three and nine months ended September 30, 2014, we reduced the carrying value of certain real estate loans to $5.3 billion and $6.6 billion, respectively, as a result of the transfers of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
(c) | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | ||||||||||||||||||||
(d) | Recoveries during the nine months ended September 30, 2014 included $2.2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014, net of a $0.2 million reserve for subsequent buybacks. | ||||||||||||||||||||
(e) | Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13.3 million of additional charge-offs in March 2013. | ||||||||||||||||||||
(f) | Recoveries during the nine months ended September 30, 2013 included $39.6 million ($23.8 million of personal loan recoveries, $9.9 million of real estate loan recoveries, and $5.9 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $1.6 million adjustment for the subsequent buyback of certain finance receivables. | ||||||||||||||||||||
Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $67.8 million at September 30, 2014 and $153.1 million at December 31, 2013. See Note 9 for further discussion regarding our securitization transactions. | |||||||||||||||||||||
The carrying value charged-off for purchased credit impaired loans was as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Charged-off against provision for finance receivable losses: | |||||||||||||||||||||
SCP Loans | $ | 4,869 | $ | — | $ | 4,869 | $ | — | |||||||||||||
FA Loans gross charge-offs* | $ | 2,019 | $ | 9,873 | $ | 14,951 | $ | 31,501 | |||||||||||||
* | Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. | ||||||||||||||||||||
The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 123,293 | $ | 319 | $ | 1,916 | $ | 1,194 | $ | 126,722 | |||||||||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | — | — | 4,513 | — | 4,513 | ||||||||||||||||
Individually evaluated for impairment (TDR finance receivables) | — | — | 31,205 | — | 31,205 | ||||||||||||||||
Total | $ | 123,293 | $ | 319 | $ | 37,634 | $ | 1,194 | $ | 162,440 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,579,588 | $ | 1,712,178 | $ | 520,969 | $ | 56,900 | $ | 5,869,635 | |||||||||||
Purchased credit impaired finance receivables | — | 370,967 | 30,686 | — | 401,653 | ||||||||||||||||
TDR finance receivables | — | — | 103,890 | — | 103,890 | ||||||||||||||||
Total | $ | 3,579,588 | $ | 2,083,145 | $ | 655,545 | $ | 56,900 | $ | 6,375,178 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 94,323 | $ | — | $ | 1,760 | $ | 1,840 | $ | 97,923 | |||||||||||
Purchased credit impaired finance receivables | — | — | 57,261 | — | 57,261 | ||||||||||||||||
TDR finance receivables | — | — | 177,011 | — | 177,011 | ||||||||||||||||
Total | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,159,932 | $ | — | $ | 5,205,813 | $ | 98,911 | $ | 8,464,656 | |||||||||||
Purchased credit impaired finance receivables | — | — | 1,307,882 | — | 1,307,882 | ||||||||||||||||
TDR finance receivables | — | — | 1,371,321 | — | 1,371,321 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
Finance_Receivables_Held_for_S
Finance Receivables Held for Sale | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Receivables Held-for-sale [Abstract] | ' | ||||||||||||||||
Finance Receivables Held for Sale | ' | ||||||||||||||||
Finance Receivables Held for Sale | |||||||||||||||||
We report finance receivables held for sale of $493.2 million at September 30, 2014, which are carried at lower of cost or fair value. We used the aggregate basis to determine the lower of cost or fair value of the finance receivables held for sale since the underlying real estate loans were presented to the buyers on a portfolio basis. We also separately present the interest income on our finance receivables held for sale as interest income on finance receivables held for sale originated as held for investment on our interim consolidated statements of operations, which totaled $46.5 million and $53.7 million for the three and nine months ended September 30, 2014, respectively. | |||||||||||||||||
On August 1, 2014, we transferred real estate loans with a carrying value of $5.3 billion (after the basis adjustment for the related allowance for finance receivable losses) from finance receivables held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. On August 29, 2014, we sold finance receivables held for sale with a carrying value of $4.0 billion and related trust assets and recorded a net gain at the time of sale of $604.9 million primarily resulting from the reversal of the remaining unaccreted push-down accounting basis for these finance receivables, less allowance for finance receivable losses that we established at the date of the Fortress Acquisition. The net gain on this sale included proceeds of $38.8 million from the related MSR Sale. On September 30, 2014, we sold finance receivables held for sale with a carrying value of $768.6 million and recorded a net gain at the time of sale of $11.7 million primarily resulting from the reversal of the remaining unaccreted push-down accounting basis for these finance receivables, less allowance for finance receivable losses that we established at the date of the Fortress Acquisition. | |||||||||||||||||
On June 1, 2014, we transferred real estate loans with a carrying value of $451.2 million (after the basis adjustment for the related allowance for finance receivable losses) from finance receivables held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. On June 30, 2014, we sold finance receivables held for sale with a carrying value of $444.4 million and related trust assets and recorded a net gain at the time of sale of $34.8 million primarily resulting from the reversal of the remaining unaccreted push-down accounting basis for these finance receivables, less allowance for finance receivable losses that we established at the date of the Fortress Acquisition. | |||||||||||||||||
On March 1, 2014, we transferred real estate loans with a carrying value of $825.2 million (after the basis adjustment for the related allowance for finance receivable losses) from finance receivables held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. On March 31, 2014, we sold finance receivables held for sale with a carrying value of $814.8 million and related trust assets and recorded a net gain at the time of sale of $55.2 million primarily resulting from the reversal of the remaining unaccreted push-down accounting basis for these finance receivables, less allowance for finance receivable losses that we established at the date of the Fortress Acquisition. | |||||||||||||||||
See Note 1 for further information on these sales. We did not have any transfer activity between finance receivables held for investment to finance receivables held for sale during the first nine months of 2013. | |||||||||||||||||
LOAN REPURCHASES | |||||||||||||||||
We repurchased four loans for $0.6 million during the three months ended September 30, 2014 and nine loans for $1.5 million during the nine months ended September 30, 2014. We repurchased two loans for $0.3 million during the three months ended September 30, 2013 and 19 loans for $2.8 million during the nine months ended September 30, 2013. In each period, we repurchased the loans that were previously sold to HSBC because these loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At September 30, 2014, there were no unresolved recourse requests. | |||||||||||||||||
During the third quarter of 2014, we established a reserve for sales recourse obligations of $9.9 million related to the sales of real estate loans with a total carrying value of $6.0 billion during the first nine months of 2014. As of September 30, 2014, we had no repurchase activity or recourse losses associated with these sales. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. | |||||||||||||||||
The activity in our reserve for sales recourse obligations associated with the real estate loan sales during the first nine months of 2014 and the loans that were previously sold to HSBC were as follows: | |||||||||||||||||
(dollars in thousands) | At or for the Three Months | At or for the Three Months | At or for the Nine Months | At or for the Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at beginning of period | $ | 4,724 | $ | 4,766 | $ | 4,702 | $ | 4,863 | |||||||||
Provision for recourse obligations | 8,543 | — | 8,706 | 322 | |||||||||||||
Recourse losses | (70 | ) | (42 | ) | (211 | ) | (461 | ) | |||||||||
Balance at end of period | $ | 13,197 | $ | 4,724 | $ | 13,197 | $ | 4,724 | |||||||||
Investment_Securities
Investment Securities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||
AVAILABLE-FOR-SALE SECURITIES | |||||||||||||||||||||||||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | Cost/ | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Amortized | Gains | Losses | Value | ||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 55,427 | $ | 930 | $ | (159 | ) | $ | 56,198 | ||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 115,916 | 2,618 | (82 | ) | 118,452 | ||||||||||||||||||||
Corporate debt | 252,498 | 11,452 | (1,200 | ) | 262,750 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
Residential mortgage-backed securities (“RMBS”) | 77,098 | 2,362 | (42 | ) | 79,418 | ||||||||||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 22,167 | 80 | (149 | ) | 22,098 | ||||||||||||||||||||
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | 18,589 | 30 | (50 | ) | 18,569 | ||||||||||||||||||||
Total | 541,695 | 17,472 | (1,682 | ) | 557,485 | ||||||||||||||||||||
Preferred stock | 7,163 | 84 | (204 | ) | 7,043 | ||||||||||||||||||||
Other long-term investments* | 1,306 | 131 | (7 | ) | 1,430 | ||||||||||||||||||||
Common stocks | 850 | — | — | 850 | |||||||||||||||||||||
Total | $ | 551,014 | $ | 17,687 | $ | (1,893 | ) | $ | 566,808 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 58,748 | $ | 565 | $ | (680 | ) | $ | 58,633 | ||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 101,118 | 1,703 | (76 | ) | 102,745 | ||||||||||||||||||||
Corporate debt | 233,977 | 6,126 | (2,187 | ) | 237,916 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 81,259 | 1,923 | (559 | ) | 82,623 | ||||||||||||||||||||
CMBS | 7,487 | 76 | (16 | ) | 7,547 | ||||||||||||||||||||
CDO/ABS | 3,981 | 19 | (24 | ) | 3,976 | ||||||||||||||||||||
Total | 486,570 | 10,412 | (3,542 | ) | 493,440 | ||||||||||||||||||||
Preferred stock | 7,844 | — | (39 | ) | 7,805 | ||||||||||||||||||||
Other long-term investments* | 1,394 | — | (125 | ) | 1,269 | ||||||||||||||||||||
Common stocks | 850 | — | — | 850 | |||||||||||||||||||||
Total | $ | 496,658 | $ | 10,412 | $ | (3,706 | ) | $ | 503,364 | ||||||||||||||||
* | Excludes interest in a limited partnership that we account for using the equity method ($0.5 million at September 30, 2014 and $0.6 million at December 31, 2013). | ||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, we had no available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss. | |||||||||||||||||||||||||
Fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position were as follows: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 17,827 | $ | (53 | ) | $ | 13,468 | $ | (106 | ) | $ | 31,295 | $ | (159 | ) | ||||||||||
Obligations of states, municipalities, and political subdivisions | 17,917 | (54 | ) | 1,053 | (28 | ) | 18,970 | (82 | ) | ||||||||||||||||
Corporate debt | 34,004 | (358 | ) | 15,356 | (842 | ) | 49,360 | (1,200 | ) | ||||||||||||||||
RMBS | 12,310 | (19 | ) | 2,635 | (23 | ) | 14,945 | (42 | ) | ||||||||||||||||
CMBS | 18,605 | (149 | ) | — | — | 18,605 | (149 | ) | |||||||||||||||||
CDO/ABS | 6,874 | (50 | ) | — | — | 6,874 | (50 | ) | |||||||||||||||||
Total | 107,537 | (683 | ) | 32,512 | (999 | ) | 140,049 | (1,682 | ) | ||||||||||||||||
Preferred stock | 6,019 | (204 | ) | — | — | 6,019 | (204 | ) | |||||||||||||||||
Other long-term investments | — | — | 104 | (7 | ) | 104 | (7 | ) | |||||||||||||||||
Total | $ | 113,556 | $ | (887 | ) | $ | 32,616 | $ | (1,006 | ) | $ | 146,172 | $ | (1,893 | ) | ||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 44,314 | $ | (680 | ) | $ | — | $ | — | $ | 44,314 | $ | (680 | ) | |||||||||||
Obligations of states, municipalities, and political subdivisions | 14,220 | (76 | ) | — | — | 14,220 | (76 | ) | |||||||||||||||||
Corporate debt | 65,809 | (1,535 | ) | 11,772 | (652 | ) | 77,581 | (2,187 | ) | ||||||||||||||||
RMBS | 18,288 | (559 | ) | — | — | 18,288 | (559 | ) | |||||||||||||||||
CMBS | 2,993 | (16 | ) | — | — | 2,993 | (16 | ) | |||||||||||||||||
CDO/ABS | 2,658 | (24 | ) | — | — | 2,658 | (24 | ) | |||||||||||||||||
Total | 148,282 | (2,890 | ) | 11,772 | (652 | ) | 160,054 | (3,542 | ) | ||||||||||||||||
Preferred stock | 7,805 | (39 | ) | — | — | 7,805 | (39 | ) | |||||||||||||||||
Other long-term investments | 1,269 | (125 | ) | — | — | 1,269 | (125 | ) | |||||||||||||||||
Total | $ | 157,356 | $ | (3,054 | ) | $ | 11,772 | $ | (652 | ) | $ | 169,128 | $ | (3,706 | ) | ||||||||||
We continue to monitor unrealized loss positions for potential impairments. During the nine months ended September 30, 2014, we did not recognize any other-than-temporary impairment credit loss write-downs to investment revenues. During the nine months ended September 30, 2013, we recognized other-than-temporary impairment credit loss write-downs to investment revenues on RMBS totaling $26 thousand. | |||||||||||||||||||||||||
Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | At or for the Three Months | At or for the Three Months | At or for the Nine Months | At or for the Nine Months | |||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Balance at beginning of period | $ | 1,318 | $ | 1,523 | $ | 1,523 | $ | 1,650 | |||||||||||||||||
Additions: | |||||||||||||||||||||||||
Due to other-than-temporary impairments: | |||||||||||||||||||||||||
Impairment previously recognized | — | — | — | 26 | |||||||||||||||||||||
Reductions: | |||||||||||||||||||||||||
Realized due to dispositions with no prior intention to sell | — | — | (205 | ) | (153 | ) | |||||||||||||||||||
Balance at end of period | $ | 1,318 | $ | 1,523 | $ | 1,318 | $ | 1,523 | |||||||||||||||||
The fair values of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains (losses) were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Revised | Revised | ||||||||||||||||||||||||
Fair value | $ | 104,960 | $ | 36,170 | $ | 203,384 | $ | 135,202 | |||||||||||||||||
Realized gains | $ | 4,614 | $ | 166 | $ | 7,205 | $ | 2,278 | |||||||||||||||||
Realized losses | (67 | ) | (219 | ) | (309 | ) | (390 | ) | |||||||||||||||||
Net realized gains (losses) | $ | 4,547 | $ | (53 | ) | $ | 6,896 | $ | 1,888 | ||||||||||||||||
Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2014 were as follows: | |||||||||||||||||||||||||
Fair | Amortized | ||||||||||||||||||||||||
(dollars in thousands) | Value | Cost | |||||||||||||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |||||||||||||||||||||||||
Due in 1 year or less | $ | 28,104 | $ | 27,511 | |||||||||||||||||||||
Due after 1 year through 5 years | 178,708 | 174,715 | |||||||||||||||||||||||
Due after 5 years through 10 years | 94,638 | 93,428 | |||||||||||||||||||||||
Due after 10 years | 135,950 | 128,187 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 120,085 | 117,854 | |||||||||||||||||||||||
Total | $ | 557,485 | $ | 541,695 | |||||||||||||||||||||
Actual maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity to achieve corporate requirements and investment strategies. | |||||||||||||||||||||||||
TRADING SECURITIES | |||||||||||||||||||||||||
The fair value of trading securities by type was as follows: | |||||||||||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Fixed maturity trading securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 134,381 | $ | — | |||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 87,340 | — | |||||||||||||||||||||||
Corporate debt | 443,884 | 1,837 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 64,527 | 10,671 | |||||||||||||||||||||||
CMBS | 106,115 | 29,897 | |||||||||||||||||||||||
CDO/ABS | 293,331 | 9,249 | |||||||||||||||||||||||
Total | $ | 1,129,578 | $ | 51,654 | |||||||||||||||||||||
The net unrealized and realized gains (losses) on our trading securities were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Revised | Revised | ||||||||||||||||||||||||
Net unrealized losses on trading securities held at period end | $ | (2,038 | ) | $ | (224 | ) | $ | (1,120 | ) | $ | (433 | ) | |||||||||||||
Net realized gains on trading securities sold or redeemed | 249 | 63 | 279 | 174 | |||||||||||||||||||||
Total | $ | (1,789 | ) | $ | (161 | ) | $ | (841 | ) | $ | (259 | ) |
Related_Party_Transactions
Related Party Transactions (Related Parties other than Affiliates of Fortress or AIG) | 9 Months Ended |
Sep. 30, 2014 | |
Related Parties other than Affiliates of Fortress or AIG | ' |
Related Party Transactions | ' |
Related Party Transactions | ' |
Related Party Transactions | |
AFFILIATE LENDING | |
Note Receivable from Parent | |
SFC’s note receivable from parent is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022; however, SFC does not anticipate the need for additional liquidity during 2014 and does not expect to demand payment from SFI in 2014. The note receivable from parent totaled $168.0 million at September 30, 2014 and December 31, 2013. Interest receivable on this note totaled $0.4 million and $0.5 million at September 30, 2014 and December 31, 2013, respectively. The interest rate for the unpaid principal balance is the prime rate. Interest revenue on the note receivable from SFI totaled $1.4 million and $4.1 million for the three and nine months ended September 30, 2014, respectively, compared to $4.4 million and $14.4 million for the three and nine months ended September 30, 2013, respectively. | |
Receivables from Parent and Affiliates | |
At September 30, 2014 and December 31, 2013, receivables from our parent and affiliates totaled $20.1 million and $39.4 million, respectively, primarily due to a receivable from Second Street Funding Corporation, a subsidiary of SFI, for income taxes payable under current and prior tax sharing agreements, which were paid by SFC. In addition, Cash Services, Inc. (“CSI”), a subsidiary of SFC, had a receivable related to cash payments due from SpringCastle Holdings, LLC, a subsidiary of SAC, of $16.4 million at December 31, 2013. As a result of the SAC Capital Contribution on July 31, 2014, SpringCastle Holdings, LLC is an indirect subsidiary of SFC. The receivables from our parent and affiliates also include interest receivable on SFC’s note receivable from SFI discussed above. At December 31, 2013, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had a receivable of $1.0 million from Springleaf Consumer Loan, Inc. (“SCL”), an indirect subsidiary of SFI, due to an overpayment of internet lending referral fees charged to the branch network. | |
Intercompany Demand Notes | |
Pursuant to an intercompany demand note dated July 26, 2013 between SFC and SFI, SFI may borrow up to $50.0 million from SFC. The note is payable in full on December 14, 2014, and is prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance is 7.00%. SFI expects to use advances under the note, if any, for general corporate purposes. At September 30, 2014 and December 31, 2013, SFI had not drawn any funds under this note. | |
SFI provides funding for SAC’s operations through an amended and restated intercompany demand note dated June 7, 2013, not to exceed $2.5 million. The note is payable in full on December 31, 2022, and is prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance is 8.00%. At September 30, 2014, the note payable to SFI totaled $1.1 million and was reported in other liabilities. Interest expense on the note payable to SFI totaled $15 thousand for the three and nine months ended September 30, 2014. | |
Payables to Parent and Affiliates | |
At September 30, 2014 and December 31, 2013, SFC’s payable to parent totaled $18.8 million and $22.0 million, respectively, primarily due to payments made by SFI for the benefit of SFC. At September 30, 2014, SFMC had a payable of $2.6 million to SCL for internet lending referral fees charged to the branch network. | |
CASH COLLATERAL | |
In February 2013, SFI paid $3.1 million, on behalf of Financial Services of South Carolina, Inc. (“SFSSC”), a subsidiary of SFC, towards the payment of unclaimed funds to South Carolina charities in connection with a judgment entered against SFSSC in 2012. In late March 2013, SFSSC fully repaid SFI for the cash collateral, including $27.8 million cash collateral posted by SFI on behalf of SFSSC in 2012. In addition, SFSSC paid SFI $0.6 million of fees under a related fee agreement during the first quarter of 2013. | |
CAPITAL CONTRIBUTIONS | |
On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC. See Note 1 for further information. | |
On each of January 11, 2013, July 10, 2013, January 10, 2014 and July 10, 2014, SFC received capital contributions from SFI of $10.5 million to satisfy interest payments required by SFC’s debenture due in January 2013, July 2013, January 2014, and July 2014, respectively. | |
DERIVATIVES | |
During the three and nine months ended September 30, 2013, SFC paid SFI $0.7 million and $2.7 million, respectively, of collateral and guarantee fees relating to $60.0 million cash collateral posted by SFI as security for SFC’s remaining Euro swap position with AIGFP. On August 5, 2013, we terminated our remaining cross currency interest rate swap agreement and AIGFP returned the cash collateral of $40.0 million to SFI. | |
INTERCOMPANY AGREEMENTS | |
On December 24, 2012, Springleaf General Services Corporation (“SGSC”), a subsidiary of SFI, entered into the following intercompany agreements with SFMC, a subsidiary of SFC, and with certain other subsidiaries of SFI (collectively, the “Recipients”): | |
Services Agreement | |
SGSC provides the following services to the Recipients: management and administrative services; financial, accounting, treasury, tax, and audit services; facilities support services; capital funding services; legal services; human resources services (including payroll); centralized collections and lending support services; insurance, risk management, and marketing services; and information technology services. The fees payable by each Recipient to SGSC is equal to 100% of the allocated cost of providing the services to such Recipient. SGSC allocates its cost of providing these services among the Recipients and any of the companies to which it provides similar services based on an allocation method defined in the agreement. During the three and nine months ended September 30, 2014, SFMC recorded $64.4 million and $159.8 million, respectively, of service fee expenses, which are included in other operating expenses, compared to $34.8 million and $101.7 million for the three and nine months ended September 30, 2013, respectively. Services fees payable to SGSC totaled $14.1 million at September 30, 2014 and $9.4 million at December 31, 2013. | |
License Agreement | |
The agreement provides for use by SGSC of SFMC’s information technology systems and software and other related equipment. The monthly license fee payable by SGSC for its use of the information technology systems and software is 100% of the actual costs incurred by SFMC plus a 7.00% margin. The fee payable by SGSC for its use of the related equipment is 100% of the actual costs incurred by SFMC. During the three and nine months ended September 30, 2014, SFMC recorded $1.3 million and $4.0 million, respectively, of license fees, which are included as a contra expense to other operating expenses, compared to $1.6 million and $4.6 million for the three and nine months ended September 30, 2013, respectively. | |
Building Lease | |
The agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $3.7 million, plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During the three and nine months ended September 30, 2014, SFMC recorded $0.9 million and $2.8 million, respectively, of rent charged to SGSC, which is included as a contra expense to other operating expenses, compared to $0.9 million and $2.8 million for the three and nine months ended September 30, 2013, respectively. |
Transactions_with_Affiliates_o
Transactions with Affiliates of Fortress or AIG (Affiliates of Fortress or AIG) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Affiliates of Fortress or AIG | ' | ||||||||||||||||
Transactions with Affiliates of Fortress or AIG | ' | ||||||||||||||||
Transactions with Affiliates of Fortress or AIG | ' | ||||||||||||||||
Transactions with Affiliates of Fortress or AIG | |||||||||||||||||
SUBSERVICING AND REFINANCE AGREEMENTS | |||||||||||||||||
Nationstar subservices the real estate loans of certain direct and indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | |||||||||||||||||
The Owners paid Nationstar fees for its subservicing and to facilitate the repayment of our real estate loans through refinancings with other lenders as follows: | |||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Subservicing fees | $ | 1,221 | $ | 2,132 | $ | 4,922 | $ | 6,556 | |||||||||
Refinancing concessions | $ | — | $ | — | $ | — | $ | 265 | |||||||||
As a result of the recent sales of our real estate loans, some of which were serviced by Nationstar, and the MSR Sale our exposure to these affiliated services is reduced. | |||||||||||||||||
INVESTMENT MANAGEMENT AGREEMENT | |||||||||||||||||
Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services totaled $0.3 million and $0.8 million for the three and nine months ended September 30, 2014, respectively, compared to $0.2 million and $0.8 million for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||||
REINSURANCE AGREEMENTS | |||||||||||||||||
Merit Life Insurance Co. (“Merit”), our wholly owned subsidiary, enters into reinsurance agreements with subsidiaries of AIG, for reinsurance of various group annuity, credit life, and credit accident and health insurance where Merit reinsures the risk of loss. The reserves for this business fluctuate over time and, in some instances, are subject to recapture by the insurer. Reserves recorded by Merit for reinsurance agreements with subsidiaries of AIG totaled $43.9 million at September 30, 2014 and $45.6 million at December 31, 2013. | |||||||||||||||||
JOINT VENTURE | |||||||||||||||||
Certain subsidiaries of New Residential Investment Corp. (“NRZ”), own a 30% equity interest in the joint venture established in conjunction with the purchase of the SpringCastle Portfolio on April 1, 2013. NRZ is managed by an affiliate of Fortress. | |||||||||||||||||
THIRD STREET DISPOSITION | |||||||||||||||||
As discussed in Note 1, on March 6, 2014, we entered into an agreement to sell, subject to certain closing conditions, all of our interest in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to MLPFS for a price of $737.2 million. Concurrently, NRZ and MLPFS entered into an agreement pursuant to which NRZ agreed to purchase approximately 75% of these retained certificates. NRZ is managed by an affiliate of Fortress. See Note 1 for further information on this sale. |
Longterm_Debt
Long-term Debt | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||
Long-term Debt | ' | ||||||||||||||||||||
Long-term Debt | |||||||||||||||||||||
Principal maturities of long-term debt (excluding projected securitization repayments by period) by type of debt at September 30, 2014 were as follows: | |||||||||||||||||||||
(dollars in thousands) | Retail | Medium | Securitizations | Junior | Total | ||||||||||||||||
Notes | Term | Subordinated | |||||||||||||||||||
Notes | Debt | ||||||||||||||||||||
Interest rates (a) | 6.00%-7.50% | 5.40%-8.25% | 1.76%-5.00% | 6 | % | ||||||||||||||||
Fourth quarter 2014 | $ | 335,486 | $ | — | $ | — | $ | — | $ | 335,486 | |||||||||||
First quarter 2015 | 16,575 | — | — | — | 16,575 | ||||||||||||||||
Second quarter 2015 | 7,092 | — | — | — | 7,092 | ||||||||||||||||
Third quarter 2015 | 23,544 | — | — | — | 23,544 | ||||||||||||||||
Remainder of 2015 | — | 750,000 | — | — | 750,000 | ||||||||||||||||
2016 | — | 375,000 | — | — | 375,000 | ||||||||||||||||
2017 | — | 2,360,837 | — | — | 2,360,837 | ||||||||||||||||
2018 | — | — | — | — | — | ||||||||||||||||
2019-2067 | — | 1,250,000 | — | 350,000 | 1,600,000 | ||||||||||||||||
Securitizations (b) | — | — | 3,055,588 | — | 3,055,588 | ||||||||||||||||
Total principal maturities | $ | 382,697 | $ | 4,735,837 | $ | 3,055,588 | $ | 350,000 | $ | 8,524,122 | |||||||||||
Total carrying amount (c) | $ | 379,585 | $ | 4,253,867 | $ | 3,052,972 | $ | 171,613 | $ | 7,858,037 | |||||||||||
(a) | The interest rates shown are the range of contractual rates in effect at September 30, 2014. | ||||||||||||||||||||
(b) | Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 9 for further information on our long-term debt associated with securitizations. | ||||||||||||||||||||
(c) | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. | ||||||||||||||||||||
GUARANTY AGREEMENTS | |||||||||||||||||||||
On December 30, 2013, SHI entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any), and interest on approximately $5.2 billion aggregate principal amount of senior notes on a senior basis and $350.0 million aggregate principal amount of a junior subordinated debenture (collectively, the “notes”) on a junior subordinated basis issued by SFC. The notes consist of the following: 8.250% Senior Notes due 2023; 7.750% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60-year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). As of December 30, 2013, approximately $3.9 billion aggregate principal amount of senior notes were outstanding under the 1999 Indenture. The 60-year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, SHI entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of September 30, 2014, approximately $5.1 billion aggregate principal amount of senior notes, including $3.9 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350.0 million aggregate principal amount of a junior subordinated debenture were outstanding. | |||||||||||||||||||||
REPURCHASE OR REPAYMENT OF DEBT | |||||||||||||||||||||
In connection with our liability management efforts, we or our affiliates from time to time have purchased, or may in the future purchase, portions of our outstanding indebtedness. Any such purchases may be made through open market or privately negotiated transactions with third parties or pursuant to one or more tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration as we or any such affiliates may determine. Our plans are dynamic and we may adjust our plans in response to changes in our expectations and changes in market conditions. | |||||||||||||||||||||
On March 31, 2014, Springleaf Financial Funding Company (“SFFC”) prepaid, without penalty or premium, the entire $750.0 million outstanding principal balance of the secured term loan, plus accrued and unpaid interest. Effective upon the prepayment, all obligations of SFFC, SFC, and most of the consumer finance operating subsidiaries of SFC under the secured term loan (other than contingent reimbursement obligations and indemnity obligations) were terminated and all guarantees and security interests were released. |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Variable Interest Entities | ' | ||||||||
Variable Interest Entities | ' | ||||||||
Variable Interest Entities | |||||||||
As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for securitization transactions. Since these transactions involve securitization trusts required to be consolidated, the securitized assets and related liabilities are included in our condensed consolidated financial statements and are accounted for as secured borrowings. As a result of the sales of the Company’s beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions, we deconsolidated the underlying real estate loans and previously issued securitized interests which were reported in long-term debt. | |||||||||
CONSOLIDATED VIES | |||||||||
We evaluated the securitization trusts and determined that these entities are VIEs of which we are the primary beneficiary; therefore, we consolidate such entities. We are deemed to be the primary beneficiaries of these VIEs because we have the ability to direct the activities of each VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits that are potentially significant to the VIE. Such ability stems from SFC’s and/or its affiliates’ contractual right to service the securitized finance receivables. Our retained subordinated notes and residual interest trust certificates expose us to potentially significant losses and potentially significant returns. | |||||||||
The remaining asset-backed securities issued by the securitization trusts are supported by the expected cash flows from the underlying securitized finance receivables. Cash inflows from these finance receivables are distributed to investors and service providers in accordance with each transaction’s contractual priority of payments (“waterfall”) and, as such, most of these inflows must be directed first to service and repay each trust’s senior notes or certificates held principally by third-party investors. After these senior obligations are extinguished, substantially all cash inflows will be directed to the subordinated notes until fully repaid and, thereafter, to the residual interest that we own in each trust. We retain interests in these securitization transactions, including senior and subordinated securities issued by the VIEs and residual interests. We retain credit risk in the securitizations because our retained interests include the most subordinated interest in the securitized assets, which are the first to absorb credit losses on the securitized assets. We expect that any credit losses in the pools of securitized assets will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified securitized assets that subsequently become delinquent or are otherwise in default. | |||||||||
The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: | |||||||||
(dollars in thousands) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Finance receivables: | |||||||||
Personal loans | $ | 1,841,139 | $ | 1,572,070 | |||||
SpringCastle Portfolio * | $ | 2,083,145 | $ | — | |||||
Real estate loans | $ | — | $ | 5,595,150 | |||||
Allowance for finance receivable losses | $ | 67,800 | $ | 153,084 | |||||
Restricted cash | $ | 295,693 | $ | 345,906 | |||||
Liabilities | |||||||||
Long-term debt * | $ | 3,052,972 | $ | 5,160,227 | |||||
* | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. | ||||||||
2014 Consumer Loan Securitizations | |||||||||
Whitford Brook 2014-VFN1 Securitization. On June 26, 2014, we established a private securitization facility in which Whitford Brook Funding Trust 2014-VFN1 (the “Whitford Brook 2014-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC. The notes will be funded over a three-year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down to the required minimum balance of $100 million and then redrawn. Following the three-year funding period, the principal amount of the notes will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2018, unless an option to prepay is elected between July 2017 and July 2018. At September 30, 2014, the required minimum balance of $100 million was drawn under the notes. | |||||||||
2014-A Securitization. On March 26, 2014, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $559.3 million of notes backed by personal loans held by Springleaf Funding Trust 2014-A (the “2014-A Trust”), at a 2.62% weighted average yield. We sold the asset-backed notes for $559.2 million, after the price discount but before expenses and a $6.4 million interest reserve requirement. We initially retained $32.9 million of the 2014-A Trust’s subordinate asset-backed notes. | |||||||||
Sales of Previously Retained Notes | |||||||||
As discussed in Note 1, the Company’s remaining beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions were sold in three separate transactions on March 31, June 30, and August 29. As a result of these sales, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | |||||||||
During the nine months ended September 30, 2013, we sold the following previously retained mortgage-backed and asset-backed notes: | |||||||||
(dollars in thousands) | Principal Amount of | Carrying Amount of | |||||||
Previously Retained Notes Issued | Additional Debt Recorded | ||||||||
Mortgage Securitizations | |||||||||
SLFMT 2012-2 | $ | 20,000 | $ | 20,675 | |||||
SLFMT 2012-3 | $ | 7,500 | $ | 7,753 | |||||
SLFMT 2013-2 | $ | 157,517 | $ | 148,559 | |||||
Consumer Securitizations | |||||||||
SLFMT 2013-B | $ | 114,000 | $ | 111,578 | |||||
Renewal of Midbrook 2013-VFN1 Securitization | |||||||||
On September 26, 2013, we established a private securitization facility in which Midbrook Funding Trust 2013-VFN1 (the “Midbrook 2013-VFN1 Trust”), a wholly owned special purpose vehicle, could issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but could be funded from time to time over a one-year period, subject to the satisfaction of customary conditions precedent. During this period, the notes could also be paid down in whole or in part and then redrawn. Following the one-year funding period, the principal amount of the notes, if any, would amortize and would be due and payable in full in October 2017. | |||||||||
On June 13, 2014, we amended the note purchase agreement with Midbrook 2013-VFN1 Trust to extend the one-year funding period to a two-year funding period. Following the two-year funding period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2019. The maximum principal balance of variable funding notes that can be issued remained at $300 million. No amounts have been funded. | |||||||||
Repayment of 2013-BAC Trust Notes | |||||||||
On September 25, 2013, we completed a private securitization transaction in which Springleaf Funding Trust 2013-BAC, a wholly owned special purpose vehicle, issued $500 million of notes backed by an amortizing pool of personal loans acquired from subsidiaries of SFC. On March 27, 2014, we repaid the entire $231.3 million outstanding principal balance of the notes, plus accrued and unpaid interest. | |||||||||
VIE Interest Expense | |||||||||
Other than our retained subordinate and residual interests in the remaining consolidated securitization trusts, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs for the three and nine months ended September 30, 2014 totaled $43.2 million and $129.5 million, respectively, compared to $39.9 million and $101.8 million for the three and nine months ended September 30, 2013, respectively. | |||||||||
DECONSOLIDATED VIES | |||||||||
As a result of the sales of the mortgage-backed retained certificates during the first nine months of 2014, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt. The total carrying value of these real estate loans as of the sale dates was $5.1 billion. We have certain representations and warranties associated with these sales that may expose us to future losses. During the third quarter of 2014, we established a reserve for sales recourse obligations of $6.7 million related to these sales. As of September 30, 2014, we had no repurchase activity associated with these sales. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Derivative Financial Instruments | ' | ||||||||
Derivative Financial Instruments | |||||||||
During the three and nine months ended September 30, 2014, SFC did not have any derivative activity. | |||||||||
In January 2013, we reclassified $0.2 million of deferred net gain from accumulated other comprehensive income or loss to interest expense related to SFC’s election to discontinue and terminate one of its cash flow hedges in 2012. On August 5, 2013, SFC terminated its remaining cross currency interest rate swap agreement with AIG Financial Products Corp., a subsidiary of AIG, and recorded a loss of $1.9 million in other revenues — other. Immediately following this termination, we had no derivative financial instruments. | |||||||||
For the three and nine months ended September 30, 2013, we recognized $1.0 million of net gains and $3.4 million of net losses, respectively, on SFC’s non-designated hedging instruments in other revenues — other. | |||||||||
Derivative adjustments included in other revenues — other consisted of the following: | |||||||||
(dollars in thousands) | Three Months | Nine Months | |||||||
Ended | Ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2013 | ||||||||
Mark to market gains (losses) | $ | 6,260 | $ | (8,244 | ) | ||||
Net interest income | 1,701 | 9,161 | |||||||
Credit valuation adjustment gains | 11 | 50 | |||||||
Other | (292 | ) | (292 | ) | |||||
Total | $ | 7,680 | $ | 675 | |||||
SFC was exposed to credit risk if counterparties to its swap agreement did not perform. SFC regularly monitored counterparty credit ratings throughout the term of the agreement. SFC’s exposure to market risk was limited to changes in the value of its swap agreement offset by changes in the value of the hedged debt. While SFC’s cross currency interest rate swap agreement mitigated economic exposure of related debt, it did not qualify as a cash flow or fair value hedge under U.S. GAAP. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||
Changes in accumulated other comprehensive income were as follows: | |||||||||||||||||||||
(dollars in thousands) | Unrealized | Unrealized | Retirement | Foreign | Total | ||||||||||||||||
Gains (Losses) | Gains (Losses) | Plan | Currency | Accumulated | |||||||||||||||||
Investment | Cash Flow | Liabilities | Translation | Other | |||||||||||||||||
Securities | Hedges | Adjustments | Adjustments | Comprehensive | |||||||||||||||||
Income | |||||||||||||||||||||
(Loss) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 14,551 | $ | — | $ | 20,153 | $ | 3,086 | $ | 37,790 | |||||||||||
Other comprehensive income (loss) before reclassifications | (2,491 | ) | — | — | 761 | (1,730 | ) | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1,793 | ) | — | — | — | (1,793 | ) | ||||||||||||||
Balance at end of period | $ | 10,267 | $ | — | $ | 20,153 | $ | 3,847 | $ | 34,267 | |||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||
Balance at beginning of period | $ | 5,501 | $ | — | $ | 8,120 | $ | 6,221 | $ | 19,842 | |||||||||||
Other comprehensive loss before reclassifications | (277 | ) | — | — | (2,056 | ) | (2,333 | ) | |||||||||||||
Reclassification adjustments from accumulated other comprehensive income | 203 | — | — | — | 203 | ||||||||||||||||
Balance at end of period | $ | 5,427 | $ | — | $ | 8,120 | $ | 4,165 | $ | 17,712 | |||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 4,362 | $ | — | $ | 20,153 | $ | 3,580 | $ | 28,095 | |||||||||||
Other comprehensive income before reclassifications | 9,841 | — | — | 267 | 10,108 | ||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (3,936 | ) | — | — | — | (3,936 | ) | ||||||||||||||
Balance at end of period | $ | 10,267 | $ | — | $ | 20,153 | $ | 3,847 | $ | 34,267 | |||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||
Balance at beginning of period | $ | 13,545 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 25,896 | |||||||||||
Other comprehensive income (loss) before reclassifications | (7,076 | ) | — | — | 38 | (7,038 | ) | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1,042 | ) | (104 | ) | — | — | (1,146 | ) | |||||||||||||
Balance at end of period | $ | 5,427 | $ | — | $ | 8,120 | $ | 4,165 | $ | 17,712 | |||||||||||
Reclassification adjustments from accumulated other comprehensive income to the applicable line item on our condensed consolidated statements of operations were as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Unrealized gains (losses) on investment securities: | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | $ | 2,758 | $ | (312 | ) | $ | 6,055 | $ | 1,603 | ||||||||||||
Income tax effect | (965 | ) | 109 | (2,119 | ) | (561 | ) | ||||||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, net of taxes | 1,793 | (203 | ) | 3,936 | 1,042 | ||||||||||||||||
Unrealized gains on cash flow hedges: | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income to interest expense, before taxes | — | — | — | 160 | |||||||||||||||||
Income tax effect | — | — | — | (56 | ) | ||||||||||||||||
Reclassification from accumulated other comprehensive income to interest expense, net of taxes | — | — | — | 104 | |||||||||||||||||
Total | $ | 1,793 | $ | (203 | ) | $ | 3,936 | $ | 1,146 | ||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
At September 30, 2014, we had a net deferred tax liability of $151.3 million, compared to $141.9 million at December 31, 2013. The increase in the net deferred tax liability was primarily due to the sales of the mortgage securitizations during the first nine months of 2014. We have a valuation allowance on our gross state deferred tax assets, net of a deferred federal tax benefit of $24.9 million, at September 30, 2014 compared to $23.8 million at December 31, 2013. We also had a valuation allowance against our United Kingdom and Puerto Rico operations of $22.2 million at September 30, 2014 and $21.4 million at December 31, 2013. The impact to our uncertain tax positions was immaterial. | |
The effective tax rate for the nine months ended September 30, 2014 was 34.7% compared to 37.3% for the same period in 2013. The effective tax rate for the nine months ended September 30, 2014 differed from the federal statutory rate primarily due to the effect of the non-controlling interest in our joint venture, which decreased the effective tax rate by 1.8%, partially offset by the effect of our state income taxes, which increased the effective tax rate by 1.5%. The effective tax rate for the nine months ended September 30, 2013 differed from the federal statutory rate primarily due to the effect of the state income taxes. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
LEGAL CONTINGENCIES | |
In the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation arising in connection with its activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to identify certain legal actions where we believe a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that we have not yet been notified of or are not yet determined to be probable or reasonably possible and reasonably estimable. | |
We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the condensed consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. | |
For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action. | |
For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our condensed consolidated financial statements as a whole. | |
PAYMENT PROTECTION INSURANCE | |
Our United Kingdom subsidiary provides payments of compensation to its customers who have made claims concerning Payment Protection Insurance (“PPI”) policies sold in the normal course of business by insurance intermediaries. On April 20, 2011, the High Court in the United Kingdom handed down judgment supporting the Financial Services Authority (now known as the Financial Conduct Authority) (“FCA”) guidelines on the treatment of PPI complaints. In addition, the FCA issued a guidance consultation paper in March 2012 on the PPI customer contact letters. As a result, we have concluded that there are certain circumstances where customer contact and/or redress is appropriate; therefore, this activity is ongoing. The total reserves related to the estimated PPI claims were $22.1 million at September 30, 2014 and $33.5 million at December 31, 2013. |
Benefit_Plans
Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Benefit Plans | ' | ||||||||||||||||
Benefit Plans | |||||||||||||||||
PENSION AND POSTRETIREMENT PLANS | |||||||||||||||||
Effective December 31, 2012, the Springleaf Financial Services Retirement Plan (the “Retirement Plan”) and the CommoLoCo Retirement Plan (a defined benefit pension plan for our employees in Puerto Rico) were frozen. Our current and former employees will not lose any vested benefits in the Retirement Plan or the CommoLoCo Retirement Plan that accrued prior to January 1, 2013. | |||||||||||||||||
The following table presents the components of net periodic benefit cost with respect to our defined benefit pension plans and other postretirement benefit plans: | |||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Pension | |||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Interest cost | $ | 3,805 | $ | 3,589 | $ | 11,441 | $ | 10,769 | |||||||||
Expected return on assets | (4,107 | ) | (3,874 | ) | (12,326 | ) | (11,622 | ) | |||||||||
Amortization of net loss | 2 | 12 | 4 | 35 | |||||||||||||
Net periodic benefit cost | $ | (300 | ) | $ | (273 | ) | $ | (881 | ) | $ | (818 | ) | |||||
Postretirement | |||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 20 | $ | 81 | $ | 64 | $ | 242 | |||||||||
Interest cost | 21 | 64 | 73 | 193 | |||||||||||||
Amortization of net gain | (81 | ) | — | (215 | ) | — | |||||||||||
Net periodic benefit cost | $ | (40 | ) | $ | 145 | $ | (78 | ) | $ | 435 | |||||||
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share-Based Compensation | ' |
Share-Based Compensation | |
Total share-based compensation expense, net of forfeitures, for all stock-based awards and amounts allocated under our intercompany service agreements during the three and nine months ended September 30, 2014 was $0.4 million and $3.5 million, respectively, compared to $131.3 million during the three and nine months ended September 30, 2013. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||||||
Our segments coincide with how our businesses are managed. At September 30, 2014, our four segments include: Consumer, Insurance, Acquisitions and Servicing, and Real Estate. The Acquisitions and Servicing segment was added effective July 31, 2014, as a result of the SAC Capital Contribution on July 31, 2014, as previously discussed in Note 1. | |||||||||||||||||||||||||||||
Management considers Consumer, Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.” | |||||||||||||||||||||||||||||
Our segments are managed as follows: | |||||||||||||||||||||||||||||
Core Consumer Operations | |||||||||||||||||||||||||||||
• | Consumer — We originate and service personal loans (secured and unsecured) in 26 states, which are our core operating states. | ||||||||||||||||||||||||||||
• | Insurance — We offer credit insurance (life insurance, accident and health insurance, and involuntary unemployment insurance), non-credit insurance, and ancillary products, such as warranty protection. | ||||||||||||||||||||||||||||
• | Acquisitions and Servicing — On April 1, 2013, an indirect subsidiary of SHI acquired the SpringCastle Portfolio through a joint venture in which SFC owns a 47% equity interest as a result of the SAC Capital Contribution on July 31, 2014. The SpringCastle Portfolio consists of unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). These loans vary in form and substance from our typical branch serviced loans and are in a liquidating status with no anticipation of significant renewal activity. Future strategic portfolio or business acquisitions will also be a part of this segment. | ||||||||||||||||||||||||||||
Non-Core Portfolio | |||||||||||||||||||||||||||||
• | Real Estate — We service and hold real estate loans secured by first or second mortgages on residential real estate. Real estate loans previously originated through our branch offices or previously acquired or originated through centralized distribution channels are either serviced by: (i) MorEquity, a wholly owned subsidiary, all of which are subserviced by Nationstar or (ii) our centralized servicing operation. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | ||||||||||||||||||||||||||||
The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include our legacy operations in 14 states where we have also ceased branch-based personal lending, our liquidating retail sales finance portfolio (including our retail sales finance accounts from our dedicated auto finance operation), our lending operations in Puerto Rico and the U.S. Virgin Islands, and the operations of our United Kingdom subsidiary. Effective June 1, 2014, we also report (on a prospective basis) certain real estate loans with equity capacity in Other. These short equity loans, which have liquidated down to an immaterial level, were previously included in our Core Consumer Operations. At June 1, 2014, the transfer date, the carrying value of these loans totaled $16.3 million. | |||||||||||||||||||||||||||||
Due to the nature of the Fortress Acquisition, we applied push-down accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using the same accounting basis that we employed prior to the Fortress Acquisition, which we refer to as “historical accounting basis,” to provide a consistent basis for both management and other interested third parties to better understand the operating results of these segments. The historical accounting basis (which is a basis of accounting other than U.S. GAAP) also provides better comparability of the operating results of these segments to our competitors and other companies in the financial services industry. The historical accounting basis is not applicable to the Acquisitions and Servicing segment since this segment resulted from the SAC Capital Contribution on July 31, 2014 and therefore, was not affected by the Fortress Acquisition. | |||||||||||||||||||||||||||||
The “Push-down Accounting Adjustments” column in the following tables primarily consists of: | |||||||||||||||||||||||||||||
• | the accretion or amortization of the valuation adjustments on the applicable revalued assets and liabilities; | ||||||||||||||||||||||||||||
• | the difference in finance charges on our purchased credit impaired finance receivables compared to the finance charges on these finance receivables on a historical accounting basis; | ||||||||||||||||||||||||||||
• | the elimination of accretion or amortization of historical based discounts, premiums, and other deferred costs on our finance receivables and long-term debt; | ||||||||||||||||||||||||||||
• | the difference in provision for finance receivable losses required based upon the differences in historical accounting basis and push-down accounting basis of the finance receivables; | ||||||||||||||||||||||||||||
• | the acceleration of the accretion of the net discount or amortization of the net premium applied to long-term debt that we repurchase or repay; | ||||||||||||||||||||||||||||
• | the reversal of the remaining unaccreted push-down accounting basis for net finance receivables, less allowance for finance receivable losses established at the date of the Fortress Acquisition on finance receivables held for sale that we sold; and | ||||||||||||||||||||||||||||
• | the difference in the fair value of long-term debt based upon the differences between historical accounting basis where certain long-term debt components are marked-to-market on a recurring basis, and push-down accounting basis where long-term debt is no longer marked-to-market on a recurring basis. | ||||||||||||||||||||||||||||
The following tables present information about the Company’s segments as well as reconciliations to the condensed consolidated financial statement amounts. | |||||||||||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Acquisitions and Servicing | Real Estate | Other | Push-down | Consolidated | ||||||||||||||||||||||
Accounting | Total | ||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 234,659 | $ | — | $ | 83,732 | $ | 52,994 | $ | 3,852 | $ | 10,077 | $ | 385,314 | |||||||||||||||
Finance receivables held for sale originated as held for investment | — | — | — | 40,327 | — | 6,175 | 46,502 | ||||||||||||||||||||||
Total interest income | 234,659 | — | 83,732 | 93,321 | 3,852 | 16,252 | 431,816 | ||||||||||||||||||||||
Interest expense | 40,234 | — | 11,593 | 82,465 | 1,846 | 36,354 | 172,492 | ||||||||||||||||||||||
Net interest income | 194,425 | — | 72,139 | 10,856 | 2,006 | (20,102 | ) | 259,324 | |||||||||||||||||||||
Provision for finance receivable losses | 55,357 | — | 18,072 | 37,239 | 1,291 | (19,845 | ) | 92,114 | |||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 139,068 | — | 54,067 | (26,383 | ) | 715 | (257 | ) | 167,210 | ||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | — | 43,984 | — | — | 27 | (1 | ) | 44,010 | |||||||||||||||||||||
Investment | — | 13,722 | — | (953 | ) | — | (1,563 | ) | 11,206 | ||||||||||||||||||||
Intersegment - insurance commissions | 19,489 | (19,708 | ) | — | 219 | — | — | — | |||||||||||||||||||||
Net gain on fair value adjustments on debt | — | — | 1,523 | — | — | — | 1,523 | ||||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets * | — | — | — | 286,357 | — | 330,177 | 616,534 | ||||||||||||||||||||||
Other | 609 | 2,428 | — | (2,163 | ) | 1,372 | (12,700 | ) | (10,454 | ) | |||||||||||||||||||
Total other revenues | 20,098 | 40,426 | 1,523 | 283,460 | 1,399 | 315,913 | 662,819 | ||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 61,751 | 4,790 | 2 | 17,185 | 1,916 | (42 | ) | 85,602 | |||||||||||||||||||||
Other operating expenses | 41,500 | 3,456 | 11,787 | 17,890 | 1,092 | 963 | 76,688 | ||||||||||||||||||||||
Insurance losses and loss adjustment expenses | — | 20,451 | — | — | — | (310 | ) | 20,141 | |||||||||||||||||||||
Total other expenses | 103,251 | 28,697 | 11,789 | 35,075 | 3,008 | 611 | 182,431 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | 55,915 | 11,729 | 43,801 | 222,002 | (894 | ) | 315,045 | 647,598 | |||||||||||||||||||||
Income before provision for income taxes attributable to non-controlling interests | — | — | 23,225 | — | — | — | 23,225 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | $ | 55,915 | $ | 11,729 | $ | 20,576 | $ | 222,002 | $ | (894 | ) | $ | 315,045 | $ | 624,373 | ||||||||||||||
* | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the date the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sale of these loans. | ||||||||||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Push-down | Consolidated | |||||||||||||||||||||||
Accounting | Total | ||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||||||||||
Interest income | $ | 188,294 | $ | — | $ | 168,873 | $ | 10,000 | $ | 49,974 | $ | 417,141 | |||||||||||||||||
Interest expense | 38,254 | — | 129,776 | 3,329 | 33,911 | 205,270 | |||||||||||||||||||||||
Net interest income | 150,040 | — | 39,097 | 6,671 | 16,063 | 211,871 | |||||||||||||||||||||||
Provision for finance receivable losses | 38,111 | — | 52,547 | 2,364 | 8,368 | 101,390 | |||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 111,929 | — | (13,450 | ) | 4,307 | 7,695 | 110,481 | ||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | — | 38,266 | — | 18 | (7 | ) | 38,277 | ||||||||||||||||||||||
Investment | — | 8,313 | — | — | (1,781 | ) | 6,532 | ||||||||||||||||||||||
Intersegment - insurance commissions | 15,086 | (15,097 | ) | 42 | (31 | ) | — | — | |||||||||||||||||||||
Net loss on repurchases and repayments of debt | (2,891 | ) | — | (15,817 | ) | (706 | ) | (14,158 | ) | (33,572 | ) | ||||||||||||||||||
Net gain (loss) on fair value adjustments on debt | — | — | 12,216 | — | (12,216 | ) | — | ||||||||||||||||||||||
Other | 492 | 2,426 | (1,842 | ) | 4,404 | 34 | 5,514 | ||||||||||||||||||||||
Total other revenues | 12,687 | 33,908 | (5,401 | ) | 3,685 | (28,128 | ) | 16,751 | |||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 61,398 | 4,480 | 7,551 | 136,249 | (53 | ) | 209,625 | ||||||||||||||||||||||
Other operating expenses | 30,867 | 3,288 | 14,789 | 2,063 | 1,103 | 52,110 | |||||||||||||||||||||||
Insurance losses and loss adjustment expenses | — | 16,849 | — | — | (299 | ) | 16,550 | ||||||||||||||||||||||
Total other expenses | 92,265 | 24,617 | 22,340 | 138,312 | 751 | 278,285 | |||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 32,351 | $ | 9,291 | $ | (41,191 | ) | $ | (130,320 | ) | $ | (21,184 | ) | $ | (151,053 | ) | |||||||||||||
(dollars in thousands) | Consumer | Insurance | Acquisitions | Real Estate | Other | Push-down | Consolidated | ||||||||||||||||||||||
and | Accounting | Total | |||||||||||||||||||||||||||
Servicing | Adjustments | ||||||||||||||||||||||||||||
At or for the Nine Months Ended | |||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 662,979 | $ | — | $ | 83,732 | $ | 334,070 | $ | 13,268 | $ | 77,945 | $ | 1,171,994 | |||||||||||||||
Finance receivables held for sale originated as held for investment | — | — | — | 47,457 | — | 6,287 | 53,744 | ||||||||||||||||||||||
Total interest income | 662,979 | — | 83,732 | 381,527 | 13,268 | 84,232 | 1,225,738 | ||||||||||||||||||||||
Interest expense | 121,428 | — | 11,593 | 286,955 | 5,821 | 100,238 | 526,035 | ||||||||||||||||||||||
Net interest income | 541,551 | — | 72,139 | 94,572 | 7,447 | (16,006 | ) | 699,703 | |||||||||||||||||||||
Provision for finance receivable losses | 147,697 | — | 18,072 | 119,228 | 6,557 | (18,182 | ) | 273,372 | |||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 393,854 | — | 54,067 | (24,656 | ) | 890 | 2,176 | 426,331 | |||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | — | 125,023 | — | — | 98 | (5 | ) | 125,116 | |||||||||||||||||||||
Investment | — | 35,652 | — | (953 | ) | — | (3,433 | ) | 31,266 | ||||||||||||||||||||
Intersegment - insurance commissions | 51,390 | (51,822 | ) | — | 442 | (10 | ) | — | — | ||||||||||||||||||||
Net gain (loss) on repurchases and repayments of debt | (1,426 | ) | — | — | (10,025 | ) | (48 | ) | 4,884 | (6,615 | ) | ||||||||||||||||||
Net gain (loss) on fair value adjustments on debt | — | — | 1,523 | 8,298 | — | (8,298 | ) | 1,523 | |||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets * | — | — | — | 201,362 | — | 505,158 | 706,520 | ||||||||||||||||||||||
Other | 1,731 | 6,103 | — | (3,070 | ) | 4,696 | (12,700 | ) | (3,240 | ) | |||||||||||||||||||
Total other revenues | 51,695 | 114,956 | 1,523 | 196,054 | 4,736 | 485,606 | 854,570 | ||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 190,951 | 14,500 | 2 | 34,558 | 9,183 | (129 | ) | 249,065 | |||||||||||||||||||||
Other operating expenses | 106,780 | 10,291 | 11,787 | 42,088 | 4,839 | 2,909 | 178,694 | ||||||||||||||||||||||
Insurance losses and loss adjustment expenses | — | 57,923 | — | — | — | (750 | ) | 57,173 | |||||||||||||||||||||
Total other expenses | 297,731 | 82,714 | 11,789 | 76,646 | 14,022 | 2,030 | 484,932 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | 147,818 | 32,242 | 43,801 | 94,752 | (8,396 | ) | 485,752 | 795,969 | |||||||||||||||||||||
Income before provision for income taxes attributable to non-controlling interests | — | — | 23,225 | — | — | — | 23,225 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | $ | 147,818 | $ | 32,242 | $ | 20,576 | $ | 94,752 | $ | (8,396 | ) | $ | 485,752 | $ | 772,744 | ||||||||||||||
Assets | $ | 3,668,399 | $ | 1,060,074 | $ | 2,249,621 | $ | 3,633,492 | $ | 714,987 | $ | 8,617 | $ | 11,335,190 | |||||||||||||||
* | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. | ||||||||||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Push-down | Consolidated | |||||||||||||||||||||||
Accounting | Total | ||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||
At or for the Nine Months Ended | |||||||||||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||||||||||
Interest income | $ | 519,315 | $ | — | $ | 529,447 | $ | 37,630 | $ | 147,112 | $ | 1,233,504 | |||||||||||||||||
Interest expense | 111,393 | — | 421,989 | 12,198 | 104,281 | 649,861 | |||||||||||||||||||||||
Net interest income | 407,922 | — | 107,458 | 25,432 | 42,831 | 583,643 | |||||||||||||||||||||||
Provision for finance receivable losses | 52,126 | — | 189,600 | (3,384 | ) | 21,663 | 260,005 | ||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 355,796 | — | (82,142 | ) | 28,816 | 21,168 | 323,638 | ||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | — | 107,114 | — | 58 | (28 | ) | 107,144 | ||||||||||||||||||||||
Investment | — | 31,792 | — | — | (5,934 | ) | 25,858 | ||||||||||||||||||||||
Intersegment - insurance commissions | 43,296 | (43,302 | ) | 100 | (94 | ) | — | — | |||||||||||||||||||||
Net gain (loss) on repurchases and repayments of debt | (4,391 | ) | — | (35,417 | ) | (977 | ) | 6,976 | (33,809 | ) | |||||||||||||||||||
Net gain (loss) on fair value adjustments on debt | — | — | 45,427 | — | (45,427 | ) | — | ||||||||||||||||||||||
Other | 1,256 | 6,797 | (1,372 | ) | 14,328 | (135 | ) | 20,874 | |||||||||||||||||||||
Total other revenues | 40,161 | 102,401 | 8,738 | 13,315 | (44,548 | ) | 120,067 | ||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 182,051 | 11,402 | 20,541 | 149,329 | (160 | ) | 363,163 | ||||||||||||||||||||||
Other operating expenses | 89,642 | 8,369 | 43,431 | 6,174 | 3,418 | 151,034 | |||||||||||||||||||||||
Insurance losses and loss adjustment expenses | — | 48,373 | — | — | (723 | ) | 47,650 | ||||||||||||||||||||||
Total other expenses | 271,693 | 68,144 | 63,972 | 155,503 | 2,535 | 561,847 | |||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 124,264 | $ | 34,257 | $ | (137,376 | ) | $ | (113,372 | ) | $ | (25,915 | ) | $ | (118,142 | ) | |||||||||||||
Assets | $ | 3,065,463 | $ | 913,440 | $ | 8,761,219 | $ | 1,801,248 | $ | (639,502 | ) | $ | 13,901,868 | ||||||||||||||||
Prior_Period_Revisions
Prior Period Revisions | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||||||||||||||||||||||||||
Prior Period Revisions | ' | ||||||||||||||||||||||||||||||||
Prior Period Revisions | |||||||||||||||||||||||||||||||||
As disclosed in our 2013 Annual Report on Form 10-K, we identified certain out-of-period errors in preparing our annual consolidated financial statements for the year ended December 31, 2013. In addition to these errors, we had previously recorded and disclosed out-of-period adjustments in prior reporting periods when the errors were discovered. As a result, we revised all previously reported periods included in our 2013 Annual Report on Form 10-K. Similarly, we have revised all previously reported periods included in this report. We corrected the errors identified in the fourth quarter of 2013 and included these corrections in the appropriate prior periods. In addition, we reversed all out-of period adjustments previously recorded and disclosed, and included the adjustments in the appropriate periods. After evaluating the quantitative and qualitative aspects of these corrections, we have determined that our previous quarterly condensed financial statements and our annual consolidated financial statements were not materially misstated. | |||||||||||||||||||||||||||||||||
The errors identified in the fourth quarter of 2013 related to the following: (1) the accretion of net discount applied to long-term debt that was revalued based on its fair value at the time of the Fortress Acquisition; (2) the accretion of original issue net discount on our long-term debt issued subsequent to the Fortress Acquisition; (3) the classification of certain investment securities found to contain embedded derivatives and the accounting treatment of the related change in fair value; and (4) the continued accretion of discounts on loans in non-accrual status. | |||||||||||||||||||||||||||||||||
In addition, we made other corrections during the fourth quarter of 2013, which were isolated to intra-periods in 2013, and revised the appropriate periods of 2013 in our 2013 Annual Report on Form 10-K and in this report. These revisions related to charge-offs on certain qualified real estate loans that had not been granted principal forgiveness. | |||||||||||||||||||||||||||||||||
We also recorded the previously disclosed out-of-period adjustments in the appropriate periods. These adjustments primarily related to the following: | |||||||||||||||||||||||||||||||||
• | capitalized interest on purchased credit impaired finance receivables serviced by a third party; | ||||||||||||||||||||||||||||||||
• | the difference between the hypothetical derivative interest expense and the contractual derivative interest expense; | ||||||||||||||||||||||||||||||||
• | the identification of certain bankrupt real estate loan accounts for consideration as TDR finance receivables; | ||||||||||||||||||||||||||||||||
• | to correct certain inputs in our model supporting the TDR allowance for finance receivable losses; | ||||||||||||||||||||||||||||||||
• | distributions of limited partnerships; | ||||||||||||||||||||||||||||||||
• | the calculations of the carrying value for our real estate owned and the net loss on sales of our real estate owned that are externally serviced; | ||||||||||||||||||||||||||||||||
• | the calculation of real estate owned expenses; | ||||||||||||||||||||||||||||||||
• | payable to former parent related to any refund of (or credit for) taxes, including any interest received; | ||||||||||||||||||||||||||||||||
• | benefit reserves related to a closed block of annuities; | ||||||||||||||||||||||||||||||||
• | change in estimate for the taxable income related to mortgage securitizations; and | ||||||||||||||||||||||||||||||||
• | the correction of current and deferred tax expense. | ||||||||||||||||||||||||||||||||
In addition to the revisions previously discussed, during the fourth quarter of 2013 we identified presentation errors in the classification of certain line items within our consolidated statement of cash flows and revised the appropriate line items in our 2013 Annual Report on Form 10-K and in this report. These errors related to the following: | |||||||||||||||||||||||||||||||||
• | the income tax effect on the changes in accumulated other comprehensive income related to net unrealized gains and losses on investment securities and cash flow hedges were incorrectly included in “Change in other assets and other liabilities” instead of “Change in taxes receivable and payable” within the same operating activities section; | ||||||||||||||||||||||||||||||||
• | certain debt issue costs were incorrectly included in “Change in other assets and other liabilities” within the operating activities section instead of “Proceeds from issuance of long-term debt, net of commissions” within the financing activities section; | ||||||||||||||||||||||||||||||||
• | the deferred costs on the repurchased debt incurred after the Fortress Acquisition were incorrectly included in “Change in other assets and other liabilities” instead of “Net loss on repurchases and repayments of debt” within the same operating activities section; | ||||||||||||||||||||||||||||||||
• | accrued interest and finance charges on real estate loan modifications were incorrectly included in “Principal collections on finance receivables” within the investing activities section instead of “Change in accrued interest and finance charges” within the operating activities section; and | ||||||||||||||||||||||||||||||||
• | “Deferral of finance receivable origination costs” was incorrectly included within the operating activities section instead of the investing activities section. | ||||||||||||||||||||||||||||||||
Revised Condensed Consolidated Statement of Operations (Unaudited) | |||||||||||||||||||||||||||||||||
The following table reconciles the amounts previously reported in our condensed consolidated statement of operations to the corresponding revised amounts. The “Out-of-Period” column reflects the previously disclosed out-of period adjustments that are now being corrected in the appropriate periods. The “Adjustments” column reflects the corrections of the errors discovered during the fourth quarter of 2013. | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 (Unaudited) | September 30, 2013 (Unaudited) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | As Reported | Out-of-Period | Adjustments | As Revised | As Reported | Out-of-Period | Adjustments | As Revised | |||||||||||||||||||||||||
Interest income | $ | 417,627 | $ | — | $ | (486 | ) | $ | 417,141 | $ | 1,235,483 | $ | — | $ | (1,979 | ) | $ | 1,233,504 | |||||||||||||||
Interest expense | 205,036 | — | 234 | 205,270 | 646,932 | — | 2,929 | 649,861 | |||||||||||||||||||||||||
Net interest income | 212,591 | — | (720 | ) | 211,871 | 588,551 | — | (4,908 | ) | 583,643 | |||||||||||||||||||||||
Provision for finance receivable losses | 97,414 | 4,389 | (413 | ) | 101,390 | 262,142 | (860 | ) | (1,277 | ) | 260,005 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 115,177 | (4,389 | ) | (307 | ) | 110,481 | 326,409 | 860 | (3,631 | ) | 323,638 | ||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||||||
Insurance | 38,277 | — | — | 38,277 | 107,144 | — | — | 107,144 | |||||||||||||||||||||||||
Investment | 6,756 | — | (224 | ) | 6,532 | 26,291 | — | (433 | ) | 25,858 | |||||||||||||||||||||||
Net loss on repurchases and repayments of debt | (34,503 | ) | — | 931 | (33,572 | ) | (34,558 | ) | — | 749 | (33,809 | ) | |||||||||||||||||||||
Other | 5,514 | — | — | 5,514 | 20,874 | — | — | 20,874 | |||||||||||||||||||||||||
Total other revenues | 16,044 | — | 707 | 16,751 | 119,751 | — | 316 | 120,067 | |||||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Salaries and benefits | 209,625 | — | — | 209,625 | 363,163 | — | — | 363,163 | |||||||||||||||||||||||||
Other operating expenses | 52,110 | — | — | 52,110 | 151,034 | — | — | 151,034 | |||||||||||||||||||||||||
Insurance losses and loss adjustment expenses | 16,550 | — | — | 16,550 | 47,650 | — | — | 47,650 | |||||||||||||||||||||||||
Total other expenses | 278,285 | — | — | 278,285 | 561,847 | — | — | 561,847 | |||||||||||||||||||||||||
Loss before benefit from income taxes | (147,064 | ) | (4,389 | ) | 400 | (151,053 | ) | (115,687 | ) | 860 | (3,315 | ) | (118,142 | ) | |||||||||||||||||||
Benefit from income taxes | (55,669 | ) | (1,624 | ) | 148 | (57,145 | ) | (42,001 | ) | (869 | ) | (1,227 | ) | (44,097 | ) | ||||||||||||||||||
Net loss | $ | (91,395 | ) | $ | (2,765 | ) | $ | 252 | $ | (93,908 | ) | $ | (73,686 | ) | $ | 1,729 | $ | (2,088 | ) | $ | (74,045 | ) | |||||||||||
Revised Condensed Consolidated Statement of Comprehensive Loss (Unaudited) | |||||||||||||||||||||||||||||||||
The following table presents the amounts previously reported in our condensed consolidated statement of comprehensive income and the corresponding revised amounts. | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 (Unaudited) | September 30, 2013 (Unaudited) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | As Reported | As Revised | As Reported | As Revised | |||||||||||||||||||||||||||||
Net loss | $ | (91,395 | ) | $ | (93,908 | ) | $ | (73,686 | ) | $ | (74,045 | ) | |||||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||||||||||||
Net unrealized losses on: | |||||||||||||||||||||||||||||||||
Investment securities on which other-than-temporary impairments were taken | (17 | ) | (17 | ) | (135 | ) | (135 | ) | |||||||||||||||||||||||||
All other investment securities | (314 | ) | (412 | ) | (10,747 | ) | (10,747 | ) | |||||||||||||||||||||||||
Foreign currency translation adjustments | (2,056 | ) | (2,056 | ) | 38 | 38 | |||||||||||||||||||||||||||
Income tax effect: | |||||||||||||||||||||||||||||||||
Net unrealized losses on: | |||||||||||||||||||||||||||||||||
Investment securities on which other-than-temporary impairments were taken | 6 | 6 | 47 | 47 | |||||||||||||||||||||||||||||
All other investment securities | 110 | 146 | 3,761 | 3,759 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax, before reclassification adjustments | (2,271 | ) | (2,333 | ) | (7,036 | ) | (7,038 | ) | |||||||||||||||||||||||||
Reclassification adjustments included in net loss: | |||||||||||||||||||||||||||||||||
Net realized (gains) losses on investment securities | (10 | ) | 312 | (2,036 | ) | (1,603 | ) | ||||||||||||||||||||||||||
Cash flow hedges | — | — | (160 | ) | (160 | ) | |||||||||||||||||||||||||||
Income tax effect: | |||||||||||||||||||||||||||||||||
Net realized gains (losses) on investment securities | 4 | (109 | ) | 713 | 561 | ||||||||||||||||||||||||||||
Cash flow hedges | — | — | 56 | 56 | |||||||||||||||||||||||||||||
Reclassification adjustments included in net loss, net of tax | (6 | ) | 203 | (1,427 | ) | (1,146 | ) | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (2,277 | ) | (2,130 | ) | (8,463 | ) | (8,184 | ) | |||||||||||||||||||||||||
Comprehensive loss | $ | (93,672 | ) | $ | (96,038 | ) | $ | (82,149 | ) | $ | (82,229 | ) | |||||||||||||||||||||
Revised Condensed Consolidated Statement of Cash Flows (Unaudited) | |||||||||||||||||||||||||||||||||
The following table presents the amounts previously reported in our condensed consolidated statement of cash flows and the corresponding revised amounts and includes additional corrections to the classification of certain line items within our condensed consolidated statement of cash flows. | |||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, 2013 (Unaudited) | |||||||||||||||||||||||||||||||||
(dollars in thousands) | As Reported | As Revised | |||||||||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||||
Net loss | $ | (73,686 | ) | $ | (74,045 | ) | |||||||||||||||||||||||||||
Reconciling adjustments: | |||||||||||||||||||||||||||||||||
Provision for finance receivable losses | 262,142 | 260,005 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 48,085 | 52,993 | |||||||||||||||||||||||||||||||
Deferral of finance receivable origination costs | (42,141 | ) | — | ||||||||||||||||||||||||||||||
Deferred income tax benefit | (126,924 | ) | (109,181 | ) | |||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | 17,075 | 33,809 | |||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 131,250 | 131,250 | |||||||||||||||||||||||||||||||
Other | (445 | ) | (445 | ) | |||||||||||||||||||||||||||||
Cash flows due to changes in: | |||||||||||||||||||||||||||||||||
Other assets and other liabilities | 59,549 | 90,572 | |||||||||||||||||||||||||||||||
Insurance claims and policyholder liabilities | 14,917 | 14,917 | |||||||||||||||||||||||||||||||
Taxes receivable and payable | (30,731 | ) | (46,147 | ) | |||||||||||||||||||||||||||||
Accrued interest and finance charges | 2,491 | (29,957 | ) | ||||||||||||||||||||||||||||||
Restricted cash not reinvested | (5,716 | ) | (5,715 | ) | |||||||||||||||||||||||||||||
Other, net | (823 | ) | (824 | ) | |||||||||||||||||||||||||||||
Net cash provided by operating activities | 255,043 | 317,232 | |||||||||||||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||||||
Finance receivables originated or purchased, net of deferred origination costs | (1,589,051 | ) | (1,631,192 | ) | |||||||||||||||||||||||||||||
Principal collections on finance receivables | 1,957,957 | 1,990,405 | |||||||||||||||||||||||||||||||
Available-for-sale investment securities purchased | (96,574 | ) | (90,279 | ) | |||||||||||||||||||||||||||||
Trading investment securities purchased | — | (6,295 | ) | ||||||||||||||||||||||||||||||
Available-for-sale investment securities called, sold, and matured | 183,603 | 176,111 | |||||||||||||||||||||||||||||||
Trading investment securities called, sold, and matured | — | 7,492 | |||||||||||||||||||||||||||||||
Change in notes receivable from parent and affiliate | (30,750 | ) | (30,750 | ) | |||||||||||||||||||||||||||||
Change in restricted cash | (227,213 | ) | (227,213 | ) | |||||||||||||||||||||||||||||
Proceeds from sale of real estate owned | 87,747 | 87,747 | |||||||||||||||||||||||||||||||
Other, net | (12 | ) | (12 | ) | |||||||||||||||||||||||||||||
Net cash provided by investing activities | 285,707 | 276,014 | |||||||||||||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt, net of commissions | 3,477,534 | 3,459,579 | |||||||||||||||||||||||||||||||
Repayment of long-term debt | (4,346,910 | ) | (4,381,451 | ) | |||||||||||||||||||||||||||||
Capital contributions from parent | 21,000 | 21,000 | |||||||||||||||||||||||||||||||
Net cash used for financing activities | (848,376 | ) | (900,872 | ) | |||||||||||||||||||||||||||||
Effect of exchange rate changes | (835 | ) | (835 | ) | |||||||||||||||||||||||||||||
Net change in cash and cash equivalents | (308,461 | ) | (308,461 | ) | |||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,357,212 | 1,357,212 | |||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,048,751 | $ | 1,048,751 | |||||||||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
The fair value of a financial instrument is the amount that would be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. | |||||||||||||||||||||||||||||
The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: | |||||||||||||||||||||||||||||
Fair Value Measurements Using | Total | Total | |||||||||||||||||||||||||||
Fair | Carrying | ||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Value | Value | ||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,919,184 | $ | — | $ | — | $ | 1,919,184 | $ | 1,919,184 | |||||||||||||||||||
Investment securities | — | 1,683,120 | 13,750 | 1,696,870 | 1,696,870 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 6,731,196 | 6,731,196 | 6,212,738 | ||||||||||||||||||||||||
Finance receivables held for sale | — | — | 498,872 | 498,872 | 493,196 | ||||||||||||||||||||||||
Note receivable from parent | — | 167,989 | — | 167,989 | 167,989 | ||||||||||||||||||||||||
Restricted cash | 311,425 | — | — | 311,425 | 311,425 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 80,991 | 80,991 | 87,553 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 7,728 | 7,728 | 7,728 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 20,069 | — | 20,069 | 20,069 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 8,812,305 | $ | — | $ | 8,812,305 | $ | 7,858,037 | |||||||||||||||||||
Payables to parent and affiliates | — | 40,561 | — | 40,561 | 40,561 | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 374,835 | $ | — | $ | — | $ | 374,835 | $ | 374,835 | |||||||||||||||||||
Investment securities | — | 531,997 | 23,617 | 555,614 | 555,614 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 11,113,980 | 11,113,980 | 10,811,664 | ||||||||||||||||||||||||
Note receivable from parent | — | 167,989 | — | 167,989 | 167,989 | ||||||||||||||||||||||||
Restricted cash | 358,759 | — | — | 358,759 | 358,759 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 94,681 | 94,681 | 102,200 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 23,527 | 23,527 | 23,527 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 39,364 | — | 39,364 | 39,364 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 11,776,576 | $ | — | $ | 11,776,576 | $ | 10,640,728 | |||||||||||||||||||
Payables to parent and affiliates | — | 38,463 | — | 38,463 | 38,463 | ||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS — RECURRING BASIS | |||||||||||||||||||||||||||||
The following table presents information about our assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: | |||||||||||||||||||||||||||||
Fair Value Measurements Using | Total Carried At Fair Value | ||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 596,127 | $ | — | $ | — | $ | 596,127 | |||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 56,198 | — | 56,198 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 118,452 | — | 118,452 | |||||||||||||||||||||||||
Corporate debt | — | 258,625 | 4,125 | 262,750 | |||||||||||||||||||||||||
RMBS | — | 79,363 | 55 | 79,418 | |||||||||||||||||||||||||
CMBS | — | 22,083 | 15 | 22,098 | |||||||||||||||||||||||||
CDO/ABS | — | 18,569 | — | 18,569 | |||||||||||||||||||||||||
Total | — | 553,290 | 4,195 | 557,485 | |||||||||||||||||||||||||
Preferred stock | — | 7,043 | — | 7,043 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1,430 | 1,430 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 560,333 | 5,625 | 565,958 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 134,381 | — | 134,381 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 87,340 | — | 87,340 | |||||||||||||||||||||||||
Corporate debt | — | 443,884 | — | 443,884 | |||||||||||||||||||||||||
RMBS | — | 64,166 | 361 | 64,527 | |||||||||||||||||||||||||
CMBS | — | 106,115 | — | 106,115 | |||||||||||||||||||||||||
CDO/ABS | — | 286,901 | 6,430 | 293,331 | |||||||||||||||||||||||||
Total trading securities | — | 1,122,787 | 6,791 | 1,129,578 | |||||||||||||||||||||||||
Total investment securities | — | 1,683,120 | 12,416 | 1,695,536 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 290,495 | — | — | 290,495 | |||||||||||||||||||||||||
Total | $ | 886,622 | $ | 1,683,120 | $ | 12,416 | $ | 2,582,158 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 317,266 | $ | — | $ | 317,266 | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 185,829 | $ | — | $ | — | $ | 185,829 | |||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 58,633 | — | 58,633 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 102,745 | — | 102,745 | |||||||||||||||||||||||||
Corporate debt | — | 225,312 | 12,604 | 237,916 | |||||||||||||||||||||||||
RMBS | — | 82,510 | 113 | 82,623 | |||||||||||||||||||||||||
CMBS | — | 7,545 | 2 | 7,547 | |||||||||||||||||||||||||
CDO/ABS | — | 3,176 | 800 | 3,976 | |||||||||||||||||||||||||
Total | — | 479,921 | 13,519 | 493,440 | |||||||||||||||||||||||||
Preferred stock | — | 7,805 | — | 7,805 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1,269 | 1,269 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 487,726 | 14,788 | 502,514 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | — | 1,837 | — | 1,837 | |||||||||||||||||||||||||
RMBS | — | 10,671 | — | 10,671 | |||||||||||||||||||||||||
CMBS | — | 29,897 | — | 29,897 | |||||||||||||||||||||||||
CDO/ABS | — | 1,866 | 7,383 | 9,249 | |||||||||||||||||||||||||
Total trading securities | — | 44,271 | 7,383 | 51,654 | |||||||||||||||||||||||||
Total investment securities | — | 531,997 | 22,171 | 554,168 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 321,617 | — | — | 321,617 | |||||||||||||||||||||||||
Total | $ | 507,446 | $ | 531,997 | $ | 22,171 | $ | 1,061,614 | |||||||||||||||||||||
(a) | Other long-term investments excludes our interest in a limited partnership of $0.5 million at September 30, 2014 and $0.6 million at December 31, 2013 that we account for using the equity method. | ||||||||||||||||||||||||||||
(b) | Common stocks not carried at fair value totaled $0.9 million at September 30, 2014 and December 31, 2013 and therefore have been excluded from the table above. | ||||||||||||||||||||||||||||
We had no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2014. | |||||||||||||||||||||||||||||
The following table presents changes for the three months ended September 30, 2014 in Level 3 assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, sales, issues, settlements(a) | Transfers into | Transfers | Balance | |||||||||||||||||||||||||
Balance at beginning | Other revenues | Other comprehensive | Level 3 (b) | out of | at end of | ||||||||||||||||||||||||
(dollars in thousands) | of period | income (loss) | Level 3 | period | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 4,160 | $ | (27 | ) | $ | (8 | ) | $ | — | $ | — | $ | — | $ | 4,125 | |||||||||||||
RMBS | 65 | (4 | ) | (6 | ) | — | — | — | 55 | ||||||||||||||||||||
CMBS | 20 | — | (5 | ) | — | — | — | 15 | |||||||||||||||||||||
Total | 4,245 | (31 | ) | (19 | ) | — | — | — | 4,195 | ||||||||||||||||||||
Other long-term investments | 1,254 | — | 176 | — | — | — | 1,430 | ||||||||||||||||||||||
Total available-for-sale securities | 5,499 | (31 | ) | 157 | — | — | — | 5,625 | |||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
RMBS | — | — | — | — | 361 | — | 361 | ||||||||||||||||||||||
CDO/ABS | 6,477 | (24 | ) | — | (23 | ) | — | — | 6,430 | ||||||||||||||||||||
Total trading securities | 6,477 | (24 | ) | — | (23 | ) | 361 | — | 6,791 | ||||||||||||||||||||
Total | $ | 11,976 | $ | (55 | ) | $ | 157 | $ | (23 | ) | $ | 361 | $ | — | $ | 12,416 | |||||||||||||
(a) | “Purchases, sales, issues, and settlements” column consists only of settlements. There were no purchases, sales, or issues of investment securities for the three months ended September 30, 2014. | ||||||||||||||||||||||||||||
(b) | During the three months ended September 30, 2014, we transferred $0.4 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
The following table presents changes for the three months ended September 30, 2013 in Level 3 assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | |||||||||||||||||||||||||
sales, | Level 3 | out of | at end of | ||||||||||||||||||||||||||
Balance at | issues, | Level 3 | period | ||||||||||||||||||||||||||
beginning | settlements* | ||||||||||||||||||||||||||||
(dollars in thousands) | of period | Other | Other | ||||||||||||||||||||||||||
revenues | comprehensive | ||||||||||||||||||||||||||||
income (loss) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 13,114 | $ | (58 | ) | $ | 18 | $ | 2,016 | $ | — | $ | — | $ | 15,090 | ||||||||||||||
RMBS | 218 | — | (133 | ) | — | — | — | 85 | |||||||||||||||||||||
CMBS | 2 | — | — | — | — | — | 2 | ||||||||||||||||||||||
CDO/ABS | 800 | — | — | — | — | — | 800 | ||||||||||||||||||||||
Total | 14,134 | (58 | ) | (115 | ) | 2,016 | — | — | 15,977 | ||||||||||||||||||||
Other long-term investments | 1,478 | — | (103 | ) | — | — | — | 1,375 | |||||||||||||||||||||
Total available-for-sale securities | 15,612 | (58 | ) | (218 | ) | 2,016 | — | — | 17,352 | ||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | 7,663 | 49 | (4 | ) | (75 | ) | — | — | 7,633 | ||||||||||||||||||||
Total | $ | 23,275 | $ | (9 | ) | $ | (222 | ) | $ | 1,941 | $ | — | $ | — | $ | 24,985 | |||||||||||||
* | The detail of purchases, sales, issues, and settlements for the three months ended September 30, 2013 is presented in the table below. | ||||||||||||||||||||||||||||
The following table presents the detail of purchases, sales, issuances, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2013: | |||||||||||||||||||||||||||||
(dollars in thousands) | Purchases | Sales | Issues | Settlements | Total | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | — | $ | — | $ | — | $ | 2,016 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | — | — | — | (75 | ) | (75 | ) | ||||||||||||||||||||||
Total | $ | 2,016 | $ | — | $ | — | $ | (75 | ) | $ | 1,941 | ||||||||||||||||||
The following table presents changes for the nine months ended September 30, 2014 in Level 3 assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | |||||||||||||||||||||||||
sales, | Level 3 (b) | out of | at end of | ||||||||||||||||||||||||||
issues, | Level 3 (c) | period | |||||||||||||||||||||||||||
(dollars in thousands) | Balance at | Other | Other | settlements(a) | |||||||||||||||||||||||||
beginning | revenues | comprehensive | |||||||||||||||||||||||||||
of period | income (loss) | ||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 12,604 | $ | 177 | $ | (263 | ) | $ | (8,393 | ) | $ | — | $ | — | $ | 4,125 | |||||||||||||
RMBS | 113 | (14 | ) | (44 | ) | — | — | — | 55 | ||||||||||||||||||||
CMBS | 2 | — | 13 | — | — | — | 15 | ||||||||||||||||||||||
CDO/ABS | 800 | — | 3 | — | — | (803 | ) | — | |||||||||||||||||||||
Total | 13,519 | 163 | (291 | ) | (8,393 | ) | — | (803 | ) | 4,195 | |||||||||||||||||||
Other long-term investments | 1,269 | — | 251 | (90 | ) | — | — | 1,430 | |||||||||||||||||||||
Total available-for-sale securities | 14,788 | 163 | (40 | ) | (8,483 | ) | — | (803 | ) | 5,625 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
RMBS | — | 4 | — | (88 | ) | 1,602 | (1,157 | ) | 361 | ||||||||||||||||||||
CDO/ABS | 7,383 | 5 | — | (155 | ) | — | (803 | ) | 6,430 | ||||||||||||||||||||
Total trading securities | 7,383 | 9 | — | (243 | ) | 1,602 | (1,960 | ) | 6,791 | ||||||||||||||||||||
Total | $ | 22,171 | $ | 172 | $ | (40 | ) | $ | (8,726 | ) | $ | 1,602 | $ | (2,763 | ) | $ | 12,416 | ||||||||||||
(a) | “Purchases, sales, issues, and settlements” column only consist of settlements. There were no purchases, sales, or issues of investment securities for the nine months ended September 30, 2014. | ||||||||||||||||||||||||||||
(b) | During the nine months ended September 30, 2014, we transferred $1.6 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
(c) | During the nine months ended September 30, 2014, we transferred RMBS and CDO/ABS securities totaling $2.8 million out of Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
The following table presents changes for the nine months ended September 30, 2013 in Level 3 assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | |||||||||||||||||||||||||
sales, | Level 3 | out of | at end of | ||||||||||||||||||||||||||
issues, | Level 3 | period | |||||||||||||||||||||||||||
(dollars in thousands) | Balance at | Other | Other | settlements * | |||||||||||||||||||||||||
beginning | revenues | comprehensive | |||||||||||||||||||||||||||
of period | income (loss) | ||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 13,417 | $ | (166 | ) | $ | 304 | $ | 1,535 | $ | — | $ | — | $ | 15,090 | ||||||||||||||
RMBS | 74 | (35 | ) | 46 | — | — | — | 85 | |||||||||||||||||||||
CMBS | 153 | (8 | ) | 6 | (149 | ) | — | — | 2 | ||||||||||||||||||||
CDO/ABS | 1,200 | — | — | (400 | ) | — | — | 800 | |||||||||||||||||||||
Total | 14,844 | (209 | ) | 356 | 986 | — | — | 15,977 | |||||||||||||||||||||
Other long-term investments | 1,380 | 2 | 4 | (11 | ) | — | — | 1,375 | |||||||||||||||||||||
Total available-for-sale securities | 16,224 | (207 | ) | 360 | 975 | — | — | 17,352 | |||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | 12,192 | 562 | (426 | ) | (4,695 | ) | — | — | 7,633 | ||||||||||||||||||||
Total | $ | 28,416 | $ | 355 | $ | (66 | ) | $ | (3,720 | ) | $ | — | $ | — | $ | 24,985 | |||||||||||||
* | The detail of purchases, sales, issues, and settlements for the nine months ended September 30, 2013 is presented in the table below. | ||||||||||||||||||||||||||||
The following table presents the detail of purchases, sales, issuances, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013: | |||||||||||||||||||||||||||||
(dollars in thousands) | Purchases | Sales | Issues | Settlements | Total | ||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | — | $ | — | $ | (481 | ) | $ | 1,535 | ||||||||||||||||||
CMBS | — | — | — | (149 | ) | (149 | ) | ||||||||||||||||||||||
CDO/ABS | — | — | — | (400 | ) | (400 | ) | ||||||||||||||||||||||
Total | 2,016 | — | — | (1,030 | ) | 986 | |||||||||||||||||||||||
Other long-term investments | — | — | — | (11 | ) | (11 | ) | ||||||||||||||||||||||
Total available-for-sale securities | 2,016 | — | — | (1,041 | ) | 975 | |||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | — | — | — | (4,695 | ) | (4,695 | ) | ||||||||||||||||||||||
Total | $ | 2,016 | $ | — | $ | — | $ | (5,736 | ) | $ | (3,720 | ) | |||||||||||||||||
We used observable and/or unobservable inputs to determine the fair value of positions that we have classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category presented in the Level 3 tables above may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. | |||||||||||||||||||||||||||||
The unobservable inputs and quantitative data used in our Level 3 valuations for our investment securities were developed and used in models created by our third-party valuation service providers, which values were used by us for fair value disclosure purposes without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for other long-term investments. As a result, the weighted average ranges of the inputs for these investment securities are not applicable in the following table. | |||||||||||||||||||||||||||||
Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at September 30, 2014 and December 31, 2013 is as follows: | |||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||
Corporate debt | Discounted cash flows | Yield | 0.89% (a) | 2.68% – 8.48% (4.67%) | |||||||||||||||||||||||||
RMBS | Discounted cash flows | Spread | 6.94% (b) | ||||||||||||||||||||||||||
Other long-term investments | Discounted cash flows and indicative valuations | Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity | N/A (c) | N/A (c) | |||||||||||||||||||||||||
(a) | At September 30, 2014, corporate debt consisted of one bond. | ||||||||||||||||||||||||||||
(b) | At September 30, 2014, RMBS consisted of one bond. | ||||||||||||||||||||||||||||
(c) | Not applicable. | ||||||||||||||||||||||||||||
The fair values of the assets using significant unobservable inputs are sensitive and can be impacted by significant increases or decreases in any of those inputs. Level 3 broker-priced instruments, including RMBS (except for the one bond previously noted), CMBS, and CDO/ABS, are excluded from the table above because the unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||
Our RMBS, CMBS, and CDO/ABS securities have unobservable inputs that are reliant on and sensitive to the quality of their underlying collateral. The inputs, although not identical, have similar characteristics and interrelationships. Generally a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment speeds. An improvement in the workout criteria related to the restructured debt and/or debt covenants of the underlying collateral may lead to an improvement in the cash flows and have an inverse impact on other inputs, specifically a reduction in the amount of discount applied for marketability and liquidity, making the structured bonds more attractive to market participants. | |||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS | |||||||||||||||||||||||||||||
We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. | |||||||||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: | |||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 32,220 | $ | 32,220 | |||||||||||||||||||||
Commercial mortgage loans | — | — | 10,792 | 10,792 | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 43,012 | $ | 43,012 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 71,469 | $ | 71,469 | |||||||||||||||||||||
Commercial mortgage loans | — | — | 11,935 | 11,935 | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 83,404 | $ | 83,404 | |||||||||||||||||||||
Net impairment charges recorded on assets measured at fair value on a non-recurring basis were as follows: | |||||||||||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | 3,159 | $ | 5,668 | $ | 12,877 | $ | 19,270 | |||||||||||||||||||||
Commercial mortgage loans | (717 | ) | (61 | ) | (1,773 | ) | (1,774 | ) | |||||||||||||||||||||
Total | $ | 2,442 | $ | 5,607 | $ | 11,104 | $ | 17,496 | |||||||||||||||||||||
In accordance with the authoritative guidance for the accounting for the impairment of long-lived assets, we wrote down certain real estate owned reported in our Real Estate segment to their fair value less cost to sell for the three and nine months ended September 30, 2014 and 2013 and recorded the writedowns in other revenues — other. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets. | |||||||||||||||||||||||||||||
In accordance with the authoritative guidance for the accounting for the impairment of commercial mortgage loans, we recorded allowance adjustments on certain impaired commercial mortgage loans reported in our Insurance segment to record their fair value for the three and nine months ended September 30, 2014 and 2013 and recorded the net impairments in investment revenues. | |||||||||||||||||||||||||||||
The unobservable inputs and quantitative data used in our Level 3 valuations for our real estate owned and commercial mortgage loans were developed and used in models created by our third-party valuation service providers or valuations provided by external parties, which values were used by us for fair value disclosure purposes without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs. As a result, the weighted average ranges of the inputs are not applicable in the following table. | |||||||||||||||||||||||||||||
Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at September 30, 2014 and December 31, 2013 is as follows: | |||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||||
Real estate owned | Market approach | Third-party valuation | N/A* | N/A* | |||||||||||||||||||||||||
Commercial mortgage loans | Market approach | Local market conditions Nature of investment Comparable property sales Operating performance | N/A* | N/A* | |||||||||||||||||||||||||
* | Not applicable. | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS | |||||||||||||||||||||||||||||
We use the following methods and assumptions to estimate fair value. | |||||||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||||||
The carrying amount of cash and cash equivalents approximates fair value. | |||||||||||||||||||||||||||||
Mutual Funds | |||||||||||||||||||||||||||||
The fair value of mutual funds is based on quoted market prices of the underlying shares held in the mutual funds. | |||||||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||||||
We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or as trading and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets. | |||||||||||||||||||||||||||||
We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. | |||||||||||||||||||||||||||||
We classify investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value as trading securities at fair value. | |||||||||||||||||||||||||||||
Finance Receivables | |||||||||||||||||||||||||||||
The fair value of net finance receivables, less allowance for finance receivable losses, both non-impaired and purchased credit impaired, are determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent weaknesses in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values. | |||||||||||||||||||||||||||||
Finance Receivables Held for Sale | |||||||||||||||||||||||||||||
We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. | |||||||||||||||||||||||||||||
Restricted Cash | |||||||||||||||||||||||||||||
The carrying amount of restricted cash approximates fair value. | |||||||||||||||||||||||||||||
Note Receivable from Parent | |||||||||||||||||||||||||||||
The carrying amount of the note receivable from parent approximates the fair value because the note is payable on a demand basis prior to its due date on May 31, 2022 and the interest rate on this note adjusts with changing market interest rates. | |||||||||||||||||||||||||||||
Commercial Mortgage Loans | |||||||||||||||||||||||||||||
We utilize third-party valuation service providers to estimate the fair value of commercial mortgage loans using projected cash flows discounted at an appropriate rate based upon market conditions. | |||||||||||||||||||||||||||||
Real Estate Owned | |||||||||||||||||||||||||||||
We initially based our estimate of the fair value on independent third-party valuations at the time we took title to real estate owned. Subsequent changes in fair value are based upon independent third-party valuations obtained periodically to estimate a price that would be received in a then current transaction to sell the asset. | |||||||||||||||||||||||||||||
Escrow Advance Receivable | |||||||||||||||||||||||||||||
The carrying amount reported in our condensed consolidated balance sheets approximates fair value. | |||||||||||||||||||||||||||||
Receivables from Parent and Affiliates | |||||||||||||||||||||||||||||
The carrying amount reported in our consolidated balance sheets approximates fair value. | |||||||||||||||||||||||||||||
Long-term Debt | |||||||||||||||||||||||||||||
We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt and adjusted for foreign currency translations. | |||||||||||||||||||||||||||||
We record long-term debt issuances at fair value that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At September 30, 2014, there was no significant difference between the fair value and the principal amount of the long-term debt for which we have elected the fair value option. | |||||||||||||||||||||||||||||
Payables to Parent and Affiliates | |||||||||||||||||||||||||||||
The fair value of payable to parent and affiliates approximates the carrying value due to its short-term nature. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
SPRINGCASTLE 2014-A NOTES | |
On October 3, 2014, certain indirect subsidiaries of SFC associated with a joint venture in which we own a 47% equity interest (the “Co-Issuers”) issued $2.62 billion of the SpringCastle Funding Asset-backed Notes 2014-A (the “SpringCastle 2014-A Notes”) at a 4.68% weighted average yield in a private placement transaction. The SpringCastle 2014-A Notes are collateralized by the SpringCastle Portfolio in which SFC owns a 47% equity interest as a result of the SAC Capital Contribution on July 31, 2014. | |
The Co-Issuers sold the SpringCastle 2014-A Notes for approximately $2.55 billion after the price discount but before expenses. The Co-Issuers used the proceeds from the SpringCastle 2014-A Notes to repay in full on October 3, 2014 the SpringCastle Funding Asset-backed Notes 2013-A (the “SpringCastle 2013-A Notes”), which were issued by the Co-Issuers on April 1, 2013. At September 30, 2014, the unpaid principal balance of the SpringCastle 2013-A Notes was $1.46 billion. | |
On October 3, 2014, SAC purchased $362.5 million initial principal amount of the SpringCastle 2014-A Notes. The Co-Issuers retained $61.6 million of the SpringCastle 2014-A Notes. Certain subsidiaries of NRZ own a 30% equity interest in the Co-Issuers. NRZ is managed by an affiliate of Fortress. | |
NON-CORE REAL ESTATE LOAN TRANSACTIONS | |
Proceeds from September Whole Loan Sales | |
The aggregate purchase price of $795.1 million for the September Whole Loan Sales included a holdback provision of $120 million of which $40 million was subject to finalization of the terms and conditions of administering the holdback and the remainder was subject to our ability to cure certain documentation deficiencies within the 60 day period (subject to extension under certain circumstances) subsequent to the closing of the sale. On October 16 and November 7, 2014, we received $20 million and $21.8 million, respectively, of the holdback provision from Credit Suisse. | |
Proceeds from MSR Sale | |
On October 23, 2014, we received $15.7 million from Nationstar, which reflected 40% of the proceeds due from the MSR Sale (50% of the proceeds were received on August 29, 2014). The remaining 10% is subject to a holdback for resolution of missing documentation and other customary conditions, and is expected to be received no later than 120 days after the date of transfer of servicing upon resolution of these conditions. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | |
The “November Whole Loan Sales” | |
As discussed in Note 1, on August 6, 2014, SFC and Credit Suisse agreed to the terms of the Probable Whole Loan Sales. We completed the second sale of certain performing and non-performing mortgage loans on November 7, 2014. The real estate loans included in the November Whole Loan Sales had a carrying value of $251.0 million (after the basis adjustment for the related allowance for finance receivable losses) as of September 30, 2014. | |
The aggregate purchase price of $270.1 million for the November Whole Loan Sales included a holdback provision of $34.3 million, which is subject to our ability to cure certain documentation deficiencies within a 60 day period (subject to extension under certain circumstances) subsequent to the closing of the sale. On November 7, 2014, we received $235.8 million of the proceeds from Credit Suisse. |
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
BASIS OF PRESENTATION | |
We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by U.S. GAAP. The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), and variable interest entities (“VIEs”) in which we hold a controlling financial interest as of the financial statement date. | |
We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. These statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (“2013 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting. | |
Prior Period Revisions | ' |
Prior Period Revisions | |
As disclosed in our 2013 Annual Report on Form 10-K, we identified certain out-of-period errors in preparing our annual consolidated financial statements for the year ended December 31, 2013. In addition to these errors, we had previously recorded and disclosed out-of-period adjustments in prior reporting periods when the errors were discovered. As a result, we revised all previously reported periods included in our 2013 Annual Report on Form 10-K. Similarly, we have revised all previously reported periods included in this report. We corrected the errors identified in the fourth quarter of 2013 and included these corrections in the appropriate prior periods. In addition, we reversed all out-of period adjustments previously recorded and disclosed, and included the adjustments in the appropriate periods. After evaluating the quantitative and qualitative aspects of these corrections, we have determined that our previous quarterly condensed financial statements and our annual consolidated financial statements were not materially misstated. | |
See Note 17 for further information on the prior period revisions. | |
In addition, during the first quarter of 2014, we identified that the disclosure of the allowance for finance receivable losses related to our securitized finance receivables at December 31, 2013, was previously incorrectly overstated by $26.8 million. The parenthetical disclosure of the allowance of consolidated VIEs as of December 31, 2013 on our condensed consolidated balance sheet and the related VIE disclosures in Notes 3 and 9 have been revised in this report to $153.1 million. | |
During the second quarter of 2014, we discovered that we incorrectly disclosed the carrying values at the date of sale of the real estate loans associated with the 2009-1 securitization and certain additional real estate loans sold on March 31, 2014. The affected carrying values have been corrected in Notes 1, 3, and 4 in this report as follows: (i) the carrying value of real estate loans associated with the 2009-1 securitization that were sold on March 31, 2014, was previously reported as $742.0 million but has been corrected to be $724.9 million and (ii) the carrying value of additional real estate loans sold on March 31, 2014, was previously reported as $93.3 million but has been corrected to be $89.9 million. | |
After evaluating the quantitative and qualitative aspects of these corrections (individually and in the aggregate), management has determined that our previously issued interim and annual consolidated financial statements were not materially misstated. | |
Fortress Acquisition | ' |
Fortress Acquisition | |
Due to the significance of the ownership interest acquired by FCFI Acquisition LLC, an affiliate of Fortress, (the “Fortress Acquisition”), the nature of the transaction, and at the direction of our acquirer, we applied push-down accounting to SFC as an acquired business. We revalued our assets and liabilities based on their fair values at the date of the Fortress Acquisition, November 30, 2010, in accordance with business combination accounting standards (“push-down accounting”). | |
Significant Real Estate Loan Transactions | ' |
SIGNIFICANT REAL ESTATE LOAN TRANSACTIONS | |
In the third quarter of 2014, we entered into a series of transactions relating to the sales of our beneficial interests in our non-core real estate loans, the related servicing of these loans, and the sales of certain performing and non-performing real estate loans. The Securitization Assets Sale, the MSR Sale, and the September Whole Loan Sales are each defined below and are collectively referred to as the “Asset Sale.” The Asset Sale, along with the real estate transactions that were completed in the first half of 2014 (the “Prior Dispositions”) substantially complete the Company’s previously disclosed plan to liquidate its non-core real estate loans. | |
In conjunction with these real estate loan transactions, we have closed our servicing centers in Dallas, Texas, Rancho Cucamonga, California, and Wesley Chapel, Florida, and have eliminated certain staff positions in our Evansville, Indiana, location. In total, approximately 300 staff positions were eliminated. However, the total reduction in workforce was approximately 170 employees, as 130 employees have been transferred into other positions at Springleaf. We recorded restructuring costs of $4.3 million in the third quarter of 2014 due to the workforce reductions and the closings of the servicing facilities. | |
Our insurance subsidiaries have written certain insurance policies on properties collateralizing the loans that have been deconsolidated or disposed of as a result of these sales. As part of the disposition, the insurance policies associated with the sold loans have been or will be cancelled. | |
The “Securitization Assets Sale” | |
On August 6, 2014, SFC and Eighth Street Funding, LLC, Eleventh Street Funding, LLC, Twelfth Street Funding, LLC, Fourteenth Street Funding, LLC, Fifteenth Street Funding, LLC, Seventeenth Street Funding, LLC, and Nineteenth Street Funding, LLC (each a wholly owned subsidiary of SFC and collectively, the “Depositors”) entered into an agreement to sell, subject to certain closing conditions, certain notes and trust certificates (collectively, the “Securities”) backed by mortgage loans of the Springleaf Mortgage Loan Trust (“SMLT”) 2011-1, SMLT 2012-1, SMLT 2012-2, SMLT 2012-3, SMLT 2013-1, SMLT 2013-2, and SMLT 2013-3 (each, a “Trust”, and the issuance of the Securities by each Trust, a “Springleaf Transaction”) to Credit Suisse Securities (USA) LLC and its affiliates (“Credit Suisse”). The agreement also included the sale of the rights to receive any funds remaining in the reserve account established for each Springleaf Transaction, and certain related rights, representing substantially all of the Company’s remaining interests in the Trusts, to Credit Suisse. | |
On August 1, 2014, the real estate loans included in the transaction were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. The Depositors completed this transaction on August 29, 2014, at which time, the real estate loans included in the transaction had a carrying value of $4.0 billion (after the basis adjustment for the related allowance for finance receivable losses). The purchase price for the Securitization Asset Sale was $1.6 billion. As a result of the sale, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | |
The “MSR Sale” | |
Additionally, in a separate transaction on August 6, 2014, SFC and its wholly owned subsidiary, MorEquity, Inc. (“MorEquity”) (collectively, the “Sellers”), entered into a Mortgage Servicing Rights Purchase and Sale Agreement, dated and effective as of August 1, 2014, with Nationstar Mortgage LLC (“Nationstar”), pursuant to which the Sellers agreed to sell to Nationstar all of their rights and responsibilities as servicer, primary servicer, and/or master servicer of the mortgage loans primarily underlying the Sellers’ securitizations completed in 2011, 2012 and 2013 (each a “Pool” and collectively, the “Pools”) with an aggregate unpaid principal balance (“UPB”) of approximately $5 billion. Additionally, Nationstar agreed to assume on and after the effective date, all of the Sellers’ rights and responsibilities as servicer, primary servicer and/or master servicer, as applicable, for each Pool arising and to be performed on and after the sale date, which include, among other things, the right to receive the related servicing fee on a monthly basis. | |
The purchase price for the MSR Sale was $38.8 million. Approximately 50% of the proceeds of the MSR Sale were received on August 29, 2014, the closing date, and 40% of the proceeds of the MSR Sale were received on October 23, 2014. The remaining 10% is subject to a holdback for resolution of missing documentation and other customary conditions, and is expected to be received no later than 120 days after the date of transfer of servicing upon resolution of those conditions. See Note 19 for further information on the subsequent payment received from Nationstar on October 23, 2014. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | |
The servicing for each Pool was transferred on September 30, 2014. From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, the Company continued to service certain loans on behalf of Nationstar under an interim servicing agreement. | |
The “September Whole Loan Sales” | |
On August 6, 2014, SFC and Credit Suisse agreed to the terms of sale of certain performing and non-performing mortgage loans by certain indirect subsidiaries of SHI (referred to herein as the “Probable Whole Loan Sales”). On August 1, 2014, the real estate loans included in the Probable Whole Loan Sales were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. We completed the sale of a portion of the Probable Whole Loan Sales on September 30, 2014 (the “September Whole Loan Sales”) at which time, the real estate loans included in the September Whole Loan Sales had a carrying value of $768.6 million (after the basis adjustment for the related allowance for finance receivable losses). | |
The aggregate purchase price of $795.1 million for the September Whole Loan Sales included a holdback provision of $120 million of which $40 million was subject to finalization of the terms and conditions of administering the holdback and the remainder was subject to our ability to cure certain documentation deficiencies within the 60 day period (subject to extension under certain circumstances) subsequent to the closing of the sale. See Note 19 for further information on the subsequent payments received from Credit Suisse on October 16 and November 7, 2014. | |
Prior Dispositions | |
The “Prior Dispositions” included the following transactions: | |
The “Sixth Street Disposition”. On May 23, 2014, Sixth Street Funding LLC (“Sixth Street”), a wholly owned subsidiary of SFC, agreed to sell and transfer its beneficial interests in the mortgage-backed retained certificates related to a securitization transaction completed in 2010 to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”) for a purchase price of $263.7 million. On June 1, 2014, the real estate loans included in the transaction were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. Sixth Street completed this transaction on June 30, 2014, at which time, the real estate loans included in the transaction had a carrying value of $444.4 million (after the basis adjustment for the related allowance for finance receivable losses). As a result of the sale, we deconsolidated the securitization trust holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | |
The “Third Street Disposition”. On March 6, 2014, Third Street Funding LLC (“Third Street”), a wholly owned subsidiary of SFC, agreed to sell and transfer its beneficial interests in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to MLPFS for a purchase price of $737.2 million. On March 1, 2014, the real estate loans included in the transaction were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. Third Street completed this transaction on March 31, 2014, at which time, the real estate loans included in the transaction had a carrying value of $724.9 million (after the basis adjustment for the related allowance for finance receivable losses). As a result of the sale, we deconsolidated the securitization trust holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | |
The “MorEquity Disposition”. On March 7, 2014, MorEquity entered into an agreement to sell, subject to certain closing conditions, certain performing and non-performing real estate loans for a purchase price of $79.0 million. On March 1, 2014, these loans were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. MorEquity completed this sale on March 31, 2014, at which time, the real estate loans included in the transaction had a carrying value of $89.9 million (after the basis adjustment for the related allowance for finance receivable losses). | |
Accounting Pronouncements Adopted | ' |
ACCOUNTING PRONOUNCEMENTS ADOPTED | |
Income Taxes | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”), ASU 2013-11, Income Taxes (Topic 740), which clarifies the presentation requirements of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU became effective prospectively for the Company for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this ASU did not have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED | |
Troubled Debt Restructurings | |
In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. We are currently evaluating whether the adoption of this ASU will have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
Revenue from Contracts | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Many of our revenue sources are not within the scope of this new standard and we are currently evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
Long-term Debt | ' |
Long-term Debt | |
We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount or unamortized premium associated with the debt. We make policy elections on a security by security basis with regard to the methodology used to accrete discounts and premiums. Other than securitized products, we generally accrete discounts and premiums over the contractual life of the security using contractual payment terms. With respect to securitized products, we have historically elected to use estimated prepayment patterns adjusted for changes in estimate over the estimated life of the debt. However, in certain circumstances, including our policy election for the 2014-A securitization, we elect to amortize deferred items over the contractual life of the security. Under either treatment, such accretion is recorded to interest expense. Additionally, we generally accrete other deferred amounts (e.g. issuance costs) following the same method elected on the associated unaccreted discount or premium. |
Finance_Receivables_Tables
Finance Receivables (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||
Schedule of components of net finance receivables by type | ' | ||||||||||||||||||||
Components of net finance receivables by type were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Gross receivables* | $ | 4,181,830 | $ | 2,067,719 | $ | 653,101 | $ | 62,342 | $ | 6,964,992 | |||||||||||
Unearned finance charges and points and fees | (696,225 | ) | — | (3,260 | ) | (5,922 | ) | (705,407 | ) | ||||||||||||
Accrued finance charges | 52,294 | 15,426 | 5,625 | 480 | 73,825 | ||||||||||||||||
Deferred origination costs | 41,689 | — | 79 | — | 41,768 | ||||||||||||||||
Total | $ | 3,579,588 | $ | 2,083,145 | $ | 655,545 | $ | 56,900 | $ | 6,375,178 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Gross receivables* | $ | 3,632,462 | $ | — | $ | 7,843,787 | $ | 108,457 | $ | 11,584,706 | |||||||||||
Unearned finance charges and points and fees | (559,902 | ) | — | (1,208 | ) | (10,444 | ) | (571,554 | ) | ||||||||||||
Accrued finance charges | 48,008 | — | 42,163 | 898 | 91,069 | ||||||||||||||||
Deferred origination costs | 39,364 | — | 274 | — | 39,638 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
* | Gross receivables are defined as follows: | ||||||||||||||||||||
• | finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value; | ||||||||||||||||||||
• | finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and | ||||||||||||||||||||
• | purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. | ||||||||||||||||||||
Schedule of unused credit lines extended to customers by the Company | ' | ||||||||||||||||||||
Unused lines of credit extended to customers by the Company were as follows: | |||||||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Personal loans | $ | 1,462 | $ | 4,996 | |||||||||||||||||
SpringCastle Portfolio | 357,914 | — | |||||||||||||||||||
Real estate loans | 30,437 | 32,338 | |||||||||||||||||||
Total | $ | 389,813 | $ | 37,334 | |||||||||||||||||
Summary of net finance receivables by type and by days delinquent | ' | ||||||||||||||||||||
The following is a summary of net finance receivables by type and by days delinquent: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 31,932 | $ | 33,379 | $ | 13,151 | $ | 770 | $ | 79,232 | |||||||||||
90-119 days past due | 25,427 | 20,955 | 7,842 | 429 | 54,653 | ||||||||||||||||
120-149 days past due | 20,938 | 15,826 | 5,629 | 558 | 42,951 | ||||||||||||||||
150-179 days past due | 16,592 | 13,102 | 5,557 | 303 | 35,554 | ||||||||||||||||
180 days or more past due | 1,088 | 4,946 | 12,098 | 46 | 18,178 | ||||||||||||||||
Total delinquent finance receivables | 95,977 | 88,208 | 44,277 | 2,106 | 230,568 | ||||||||||||||||
Current | 3,430,849 | 1,932,945 | 588,886 | 53,522 | 6,006,202 | ||||||||||||||||
30-59 days past due | 52,762 | 61,992 | 22,382 | 1,272 | 138,408 | ||||||||||||||||
Total | $ | 3,579,588 | $ | 2,083,145 | $ | 655,545 | $ | 56,900 | $ | 6,375,178 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 28,297 | $ | — | $ | 96,778 | $ | 1,290 | $ | 126,365 | |||||||||||
90-119 days past due | 22,648 | — | 67,966 | 1,017 | 91,631 | ||||||||||||||||
120-149 days past due | 18,662 | — | 54,882 | 757 | 74,301 | ||||||||||||||||
150-179 days past due | 14,618 | — | 45,040 | 740 | 60,398 | ||||||||||||||||
180 days or more past due | 934 | — | 353,003 | 173 | 354,110 | ||||||||||||||||
Total delinquent finance receivables | 85,159 | — | 617,669 | 3,977 | 706,805 | ||||||||||||||||
Current | 3,027,460 | — | 7,092,107 | 92,093 | 10,211,660 | ||||||||||||||||
30-59 days past due | 47,313 | — | 175,240 | 2,841 | 225,394 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
Schedule of performing and nonperforming net finance receivables by type | ' | ||||||||||||||||||||
Our performing and nonperforming net finance receivables by type were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Performing | $ | 3,515,543 | $ | 2,028,316 | $ | 624,419 | $ | 55,564 | $ | 6,223,842 | |||||||||||
Nonperforming | 64,045 | 54,829 | 31,126 | 1,336 | 151,336 | ||||||||||||||||
Total | $ | 3,579,588 | $ | 2,083,145 | $ | 655,545 | $ | 56,900 | $ | 6,375,178 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Performing | $ | 3,103,070 | $ | — | $ | 7,364,125 | $ | 96,224 | $ | 10,563,419 | |||||||||||
Nonperforming | 56,862 | — | 520,891 | 2,687 | 580,440 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
Schedule of information regarding purchased credit impaired finance receivables | ' | ||||||||||||||||||||
Information regarding these purchased credit impaired finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | SCP Loans | FA Loans | Total | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Carrying amount, net of allowance (a) | $ | 370,967 | $ | 191,714 | $ | 562,681 | |||||||||||||||
Outstanding balance (b) | $ | 682,389 | $ | 300,128 | $ | 982,517 | |||||||||||||||
Allowance for purchased credit impaired finance receivable losses | $ | — | $ | 4,513 | $ | 4,513 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying amount, net of allowance | $ | — | $ | 1,250,621 | $ | 1,250,621 | |||||||||||||||
Outstanding balance | $ | — | $ | 1,782,271 | $ | 1,782,271 | |||||||||||||||
Allowance for purchased credit impaired finance receivable losses | $ | — | $ | 57,261 | $ | 57,261 | |||||||||||||||
Schedule of changes in accretable yield for purchased credit impaired finance receivables | ' | ||||||||||||||||||||
Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | SCP Loans | FA Loans | Total | ||||||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 622,956 | $ | 622,956 | |||||||||||||||
Accretable yield for SpringCastle Portfolio contributed to SFC (a) | 259,944 | — | 259,944 | ||||||||||||||||||
Accretion (b) | (10,327 | ) | (20,617 | ) | (30,944 | ) | |||||||||||||||
Transfers due to finance receivables sold | — | (559,250 | ) | (559,250 | ) | ||||||||||||||||
Disposals of finance receivables (c) | (3,196 | ) | (3,638 | ) | (6,834 | ) | |||||||||||||||
Balance at end of period | $ | 246,421 | $ | 39,451 | $ | 285,872 | |||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 844,018 | $ | 844,018 | |||||||||||||||
Accretion | — | (32,041 | ) | (32,041 | ) | ||||||||||||||||
Reclassifications from nonaccretable difference (d) | — | 2,740 | 2,740 | ||||||||||||||||||
Disposals of finance receivables (c) | — | (8,337 | ) | (8,337 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 806,380 | $ | 806,380 | |||||||||||||||
At or for the Nine Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 766,927 | $ | 766,927 | |||||||||||||||
Accretable yield for SpringCastle Portfolio contributed to SFC (a) | 259,944 | — | 259,944 | ||||||||||||||||||
Accretion (b) | (10,327 | ) | (75,831 | ) | (86,158 | ) | |||||||||||||||
Transfers due to finance receivables sold | — | (636,888 | ) | (636,888 | ) | ||||||||||||||||
Disposals of finance receivables (c) | (3,196 | ) | (14,757 | ) | (17,953 | ) | |||||||||||||||
Balance at end of period | $ | 246,421 | $ | 39,451 | $ | 285,872 | |||||||||||||||
At or for the Nine Months Ended | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 624,879 | $ | 624,879 | |||||||||||||||
Accretion | — | (97,036 | ) | (97,036 | ) | ||||||||||||||||
Reclassifications from nonaccretable difference (d) | — | 303,328 | 303,328 | ||||||||||||||||||
Disposals of finance receivables (c) | — | (24,791 | ) | (24,791 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 806,380 | $ | 806,380 | |||||||||||||||
(a) | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | ||||||||||||||||||||
(b) | Accretion on our purchased credit impaired finance receivables for the three and nine months ended September 30, 2014 includes $11.1 million and $11.3 million, respectively, of accretion on purchased credit impaired finance receivables held for sale, which is reported as interest income on finance receivables held for sale originated as held for investment. | ||||||||||||||||||||
(c) | Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged-off during the period. | ||||||||||||||||||||
(d) | Reclassifications from (to) nonaccretable difference represent the increases (decreases) in accretion resulting from higher (lower) estimated undiscounted cash flows. | ||||||||||||||||||||
Schedule of information regarding troubled debt restructured ("TDR") finance receivables | ' | ||||||||||||||||||||
Information regarding TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | Real Estate Loans | ||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
TDR gross finance receivables (a) (b) | $ | 334,141 | |||||||||||||||||||
TDR net finance receivables (c) | $ | 335,512 | |||||||||||||||||||
Allowance for TDR finance receivable losses | $ | 31,205 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
TDR gross finance receivables (a) | $ | 1,366,346 | |||||||||||||||||||
TDR net finance receivables | $ | 1,371,321 | |||||||||||||||||||
Allowance for TDR finance receivable losses | $ | 177,011 | |||||||||||||||||||
(a) | As defined earlier in this Note. | ||||||||||||||||||||
Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables | ' | ||||||||||||||||||||
TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
TDR average net receivables (a) | $ | 797,418 | $ | 1,200,178 | $ | 1,187,138 | $ | 1,052,653 | |||||||||||||
TDR finance charges recognized (b) | $ | 10,005 | $ | 16,841 | $ | 44,505 | $ | 45,791 | |||||||||||||
Schedule of information regarding new volume of the TDR finance receivables | ' | ||||||||||||||||||||
Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Number of TDR accounts (a) | 403 | 1,461 | 2,290 | 5,762 | |||||||||||||||||
Pre-modification TDR net finance receivables (b) | $ | 28,401 | $ | 131,969 | $ | 209,360 | $ | 450,276 | |||||||||||||
Post-modification TDR net finance receivables (b) | $ | 29,889 | $ | 139,830 | $ | 199,353 | $ | 472,724 | |||||||||||||
Schedule of net finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause TDR finance receivables to be considered nonperforming | ' | ||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Real Estate Loans | |||||||||||||||||||||
Number of TDR accounts (a) | 54 | 369 | 488 | 796 | |||||||||||||||||
TDR net finance receivables (a) (b) | $ | 2,788 | $ | 25,758 | $ | 31,465 | $ | 59,719 | |||||||||||||
(a) | Number and amount of TDR net finance receivables for the three and nine months ended September 30, 2014 that defaulted during the previous 12 month period include 30 TDR accounts that were held for sale totaling $1.8 million. | ||||||||||||||||||||
(b) | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance_for_Finance_Receivab1
Allowance for Finance Receivable Losses (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Loans and Leases Receivable, Allowance [Abstract] | ' | ||||||||||||||||||||
Schedule of changes in the allowance for finance receivable losses by finance receivable type | ' | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Consolidated Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 106,249 | $ | — | $ | 258,897 | $ | 1,350 | $ | 366,496 | |||||||||||
Provision for finance receivable losses (a) | 57,260 | 18,073 | 16,112 | 669 | 92,114 | ||||||||||||||||
Charge-offs | (47,272 | ) | (20,300 | ) | (13,291 | ) | (1,199 | ) | (82,062 | ) | |||||||||||
Recoveries | 7,056 | 1,836 | 963 | 374 | 10,229 | ||||||||||||||||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b) | — | — | (225,047 | ) | — | (225,047 | ) | ||||||||||||||
Allowance for SpringCastle Portfolio contributed to SFC (c) | — | 710 | — | — | 710 | ||||||||||||||||
Balance at end of period | $ | 123,293 | $ | 319 | $ | 37,634 | $ | 1,194 | $ | 162,440 | |||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||
Balance at beginning of period | $ | 60,250 | $ | — | $ | 180,458 | $ | 920 | $ | 241,628 | |||||||||||
Provision for finance receivable losses (a) | 39,685 | — | 59,862 | 1,843 | 101,390 | ||||||||||||||||
Charge-offs | (32,527 | ) | — | (32,989 | ) | (2,032 | ) | (67,548 | ) | ||||||||||||
Recoveries | 2,135 | — | 1,324 | 294 | 3,753 | ||||||||||||||||
Balance at end of period | $ | 69,543 | $ | — | $ | 208,655 | $ | 1,025 | $ | 279,223 | |||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Provision for finance receivable losses (a) | 149,904 | 18,073 | 102,732 | 2,663 | 273,372 | ||||||||||||||||
Charge-offs | (138,492 | ) | (20,300 | ) | (67,189 | ) | (4,310 | ) | (230,291 | ) | |||||||||||
Recoveries (d) | 17,558 | 1,836 | 5,785 | 1,001 | 26,180 | ||||||||||||||||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b) | — | — | (239,726 | ) | — | (239,726 | ) | ||||||||||||||
Allowance for SpringCastle Portfolio contributed to SFC (c) | — | 710 | — | — | 710 | ||||||||||||||||
Balance at end of period | $ | 123,293 | $ | 319 | $ | 37,634 | $ | 1,194 | $ | 162,440 | |||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||
Balance at beginning of period | $ | 66,580 | $ | — | $ | 113,861 | $ | 2,260 | $ | 182,701 | |||||||||||
Provision for finance receivable losses (a) | 64,282 | — | 199,957 | (4,234 | ) | 260,005 | |||||||||||||||
Charge-offs (e) | (106,161 | ) | — | (120,751 | ) | (7,338 | ) | (234,250 | ) | ||||||||||||
Recoveries (f) | 44,842 | — | 15,588 | 10,337 | 70,767 | ||||||||||||||||
Balance at end of period | $ | 69,543 | $ | — | $ | 208,655 | $ | 1,025 | $ | 279,223 | |||||||||||
(a) | Components of provision for finance receivable losses on our real estate loans were as follows: | ||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Real estate loans | |||||||||||||||||||||
Provision for finance receivable losses | |||||||||||||||||||||
Non-credit impaired finance receivables | $ | 6,376 | $ | 17,806 | $ | 32,189 | $ | 62,781 | |||||||||||||
Purchased credit impaired finance receivables | 3,011 | 21,210 | 28,594 | 60,511 | |||||||||||||||||
TDR finance receivables | 6,725 | 20,846 | 41,949 | 76,665 | |||||||||||||||||
Total | $ | 16,112 | $ | 59,862 | $ | 102,732 | $ | 199,957 | |||||||||||||
(b) | During the three and nine months ended September 30, 2014, we reduced the carrying value of certain real estate loans to $5.3 billion and $6.6 billion, respectively, as a result of the transfers of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
(c) | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | ||||||||||||||||||||
(d) | Recoveries during the nine months ended September 30, 2014 included $2.2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014, net of a $0.2 million reserve for subsequent buybacks. | ||||||||||||||||||||
(e) | Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13.3 million of additional charge-offs in March 2013. | ||||||||||||||||||||
(f) | Recoveries during the nine months ended September 30, 2013 included $39.6 million ($23.8 million of personal loan recoveries, $9.9 million of real estate loan recoveries, and $5.9 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $1.6 million adjustment for the subsequent buyback of certain finance receivables. | ||||||||||||||||||||
Schedule of carrying value charged-off for purchased credit impaired loans | ' | ||||||||||||||||||||
The carrying value charged-off for purchased credit impaired loans was as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Charged-off against provision for finance receivable losses: | |||||||||||||||||||||
SCP Loans | $ | 4,869 | $ | — | $ | 4,869 | $ | — | |||||||||||||
FA Loans gross charge-offs* | $ | 2,019 | $ | 9,873 | $ | 14,951 | $ | 31,501 | |||||||||||||
* | Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. | ||||||||||||||||||||
Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method | ' | ||||||||||||||||||||
The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 123,293 | $ | 319 | $ | 1,916 | $ | 1,194 | $ | 126,722 | |||||||||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | — | — | 4,513 | — | 4,513 | ||||||||||||||||
Individually evaluated for impairment (TDR finance receivables) | — | — | 31,205 | — | 31,205 | ||||||||||||||||
Total | $ | 123,293 | $ | 319 | $ | 37,634 | $ | 1,194 | $ | 162,440 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,579,588 | $ | 1,712,178 | $ | 520,969 | $ | 56,900 | $ | 5,869,635 | |||||||||||
Purchased credit impaired finance receivables | — | 370,967 | 30,686 | — | 401,653 | ||||||||||||||||
TDR finance receivables | — | — | 103,890 | — | 103,890 | ||||||||||||||||
Total | $ | 3,579,588 | $ | 2,083,145 | $ | 655,545 | $ | 56,900 | $ | 6,375,178 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 94,323 | $ | — | $ | 1,760 | $ | 1,840 | $ | 97,923 | |||||||||||
Purchased credit impaired finance receivables | — | — | 57,261 | — | 57,261 | ||||||||||||||||
TDR finance receivables | — | — | 177,011 | — | 177,011 | ||||||||||||||||
Total | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,159,932 | $ | — | $ | 5,205,813 | $ | 98,911 | $ | 8,464,656 | |||||||||||
Purchased credit impaired finance receivables | — | — | 1,307,882 | — | 1,307,882 | ||||||||||||||||
TDR finance receivables | — | — | 1,371,321 | — | 1,371,321 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
Provision for Loan Lease and Other Losses | ' | ||||||||||||||||||||
Components of provision for finance receivable losses on our real estate loans were as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Real estate loans | |||||||||||||||||||||
Provision for finance receivable losses | |||||||||||||||||||||
Non-credit impaired finance receivables | $ | 6,376 | $ | 17,806 | $ | 32,189 | $ | 62,781 | |||||||||||||
Purchased credit impaired finance receivables | 3,011 | 21,210 | 28,594 | 60,511 | |||||||||||||||||
TDR finance receivables | 6,725 | 20,846 | 41,949 | 76,665 | |||||||||||||||||
Total | $ | 16,112 | $ | 59,862 | $ | 102,732 | $ | 199,957 | |||||||||||||
Finance_Receivables_Held_for_S1
Finance Receivables Held for Sale (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Receivables Held-for-sale [Abstract] | ' | ||||||||||||||||
Schedule of activity in reserve for sales recourse obligations to HSBC | ' | ||||||||||||||||
The activity in our reserve for sales recourse obligations associated with the real estate loan sales during the first nine months of 2014 and the loans that were previously sold to HSBC were as follows: | |||||||||||||||||
(dollars in thousands) | At or for the Three Months | At or for the Three Months | At or for the Nine Months | At or for the Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at beginning of period | $ | 4,724 | $ | 4,766 | $ | 4,702 | $ | 4,863 | |||||||||
Provision for recourse obligations | 8,543 | — | 8,706 | 322 | |||||||||||||
Recourse losses | (70 | ) | (42 | ) | (211 | ) | (461 | ) | |||||||||
Balance at end of period | $ | 13,197 | $ | 4,724 | $ | 13,197 | $ | 4,724 | |||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investment securities | ' | ||||||||||||||||||||||||
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ||||||||||||||||||||||||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | Cost/ | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Amortized | Gains | Losses | Value | ||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 55,427 | $ | 930 | $ | (159 | ) | $ | 56,198 | ||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 115,916 | 2,618 | (82 | ) | 118,452 | ||||||||||||||||||||
Corporate debt | 252,498 | 11,452 | (1,200 | ) | 262,750 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
Residential mortgage-backed securities (“RMBS”) | 77,098 | 2,362 | (42 | ) | 79,418 | ||||||||||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 22,167 | 80 | (149 | ) | 22,098 | ||||||||||||||||||||
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | 18,589 | 30 | (50 | ) | 18,569 | ||||||||||||||||||||
Total | 541,695 | 17,472 | (1,682 | ) | 557,485 | ||||||||||||||||||||
Preferred stock | 7,163 | 84 | (204 | ) | 7,043 | ||||||||||||||||||||
Other long-term investments* | 1,306 | 131 | (7 | ) | 1,430 | ||||||||||||||||||||
Common stocks | 850 | — | — | 850 | |||||||||||||||||||||
Total | $ | 551,014 | $ | 17,687 | $ | (1,893 | ) | $ | 566,808 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 58,748 | $ | 565 | $ | (680 | ) | $ | 58,633 | ||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 101,118 | 1,703 | (76 | ) | 102,745 | ||||||||||||||||||||
Corporate debt | 233,977 | 6,126 | (2,187 | ) | 237,916 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 81,259 | 1,923 | (559 | ) | 82,623 | ||||||||||||||||||||
CMBS | 7,487 | 76 | (16 | ) | 7,547 | ||||||||||||||||||||
CDO/ABS | 3,981 | 19 | (24 | ) | 3,976 | ||||||||||||||||||||
Total | 486,570 | 10,412 | (3,542 | ) | 493,440 | ||||||||||||||||||||
Preferred stock | 7,844 | — | (39 | ) | 7,805 | ||||||||||||||||||||
Other long-term investments* | 1,394 | — | (125 | ) | 1,269 | ||||||||||||||||||||
Common stocks | 850 | — | — | 850 | |||||||||||||||||||||
Total | $ | 496,658 | $ | 10,412 | $ | (3,706 | ) | $ | 503,364 | ||||||||||||||||
* | Excludes interest in a limited partnership that we account for using the equity method ($0.5 million at September 30, 2014 and $0.6 million at December 31, 2013). | ||||||||||||||||||||||||
Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | ' | ||||||||||||||||||||||||
Fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position were as follows: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 17,827 | $ | (53 | ) | $ | 13,468 | $ | (106 | ) | $ | 31,295 | $ | (159 | ) | ||||||||||
Obligations of states, municipalities, and political subdivisions | 17,917 | (54 | ) | 1,053 | (28 | ) | 18,970 | (82 | ) | ||||||||||||||||
Corporate debt | 34,004 | (358 | ) | 15,356 | (842 | ) | 49,360 | (1,200 | ) | ||||||||||||||||
RMBS | 12,310 | (19 | ) | 2,635 | (23 | ) | 14,945 | (42 | ) | ||||||||||||||||
CMBS | 18,605 | (149 | ) | — | — | 18,605 | (149 | ) | |||||||||||||||||
CDO/ABS | 6,874 | (50 | ) | — | — | 6,874 | (50 | ) | |||||||||||||||||
Total | 107,537 | (683 | ) | 32,512 | (999 | ) | 140,049 | (1,682 | ) | ||||||||||||||||
Preferred stock | 6,019 | (204 | ) | — | — | 6,019 | (204 | ) | |||||||||||||||||
Other long-term investments | — | — | 104 | (7 | ) | 104 | (7 | ) | |||||||||||||||||
Total | $ | 113,556 | $ | (887 | ) | $ | 32,616 | $ | (1,006 | ) | $ | 146,172 | $ | (1,893 | ) | ||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 44,314 | $ | (680 | ) | $ | — | $ | — | $ | 44,314 | $ | (680 | ) | |||||||||||
Obligations of states, municipalities, and political subdivisions | 14,220 | (76 | ) | — | — | 14,220 | (76 | ) | |||||||||||||||||
Corporate debt | 65,809 | (1,535 | ) | 11,772 | (652 | ) | 77,581 | (2,187 | ) | ||||||||||||||||
RMBS | 18,288 | (559 | ) | — | — | 18,288 | (559 | ) | |||||||||||||||||
CMBS | 2,993 | (16 | ) | — | — | 2,993 | (16 | ) | |||||||||||||||||
CDO/ABS | 2,658 | (24 | ) | — | — | 2,658 | (24 | ) | |||||||||||||||||
Total | 148,282 | (2,890 | ) | 11,772 | (652 | ) | 160,054 | (3,542 | ) | ||||||||||||||||
Preferred stock | 7,805 | (39 | ) | — | — | 7,805 | (39 | ) | |||||||||||||||||
Other long-term investments | 1,269 | (125 | ) | — | — | 1,269 | (125 | ) | |||||||||||||||||
Total | $ | 157,356 | $ | (3,054 | ) | $ | 11,772 | $ | (652 | ) | $ | 169,128 | $ | (3,706 | ) | ||||||||||
Schedule of changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities | ' | ||||||||||||||||||||||||
Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | At or for the Three Months | At or for the Three Months | At or for the Nine Months | At or for the Nine Months | |||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Balance at beginning of period | $ | 1,318 | $ | 1,523 | $ | 1,523 | $ | 1,650 | |||||||||||||||||
Additions: | |||||||||||||||||||||||||
Due to other-than-temporary impairments: | |||||||||||||||||||||||||
Impairment previously recognized | — | — | — | 26 | |||||||||||||||||||||
Reductions: | |||||||||||||||||||||||||
Realized due to dispositions with no prior intention to sell | — | — | (205 | ) | (153 | ) | |||||||||||||||||||
Balance at end of period | $ | 1,318 | $ | 1,523 | $ | 1,318 | $ | 1,523 | |||||||||||||||||
Schedule of contractual maturities of fixed-maturity available-for-sale securities | ' | ||||||||||||||||||||||||
Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2014 were as follows: | |||||||||||||||||||||||||
Fair | Amortized | ||||||||||||||||||||||||
(dollars in thousands) | Value | Cost | |||||||||||||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |||||||||||||||||||||||||
Due in 1 year or less | $ | 28,104 | $ | 27,511 | |||||||||||||||||||||
Due after 1 year through 5 years | 178,708 | 174,715 | |||||||||||||||||||||||
Due after 5 years through 10 years | 94,638 | 93,428 | |||||||||||||||||||||||
Due after 10 years | 135,950 | 128,187 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 120,085 | 117,854 | |||||||||||||||||||||||
Total | $ | 557,485 | $ | 541,695 | |||||||||||||||||||||
Schedule of fair value of trading securities by type | ' | ||||||||||||||||||||||||
The fair value of trading securities by type was as follows: | |||||||||||||||||||||||||
(dollars in thousands) | September 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Fixed maturity trading securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 134,381 | $ | — | |||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 87,340 | — | |||||||||||||||||||||||
Corporate debt | 443,884 | 1,837 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 64,527 | 10,671 | |||||||||||||||||||||||
CMBS | 106,115 | 29,897 | |||||||||||||||||||||||
CDO/ABS | 293,331 | 9,249 | |||||||||||||||||||||||
Total | $ | 1,129,578 | $ | 51,654 | |||||||||||||||||||||
Available-for-sale securities | ' | ||||||||||||||||||||||||
Investment securities | ' | ||||||||||||||||||||||||
Schedule of realized gains, realized losses, and net realized gains due to sale or redemption of fair values of available-for-sale securities | ' | ||||||||||||||||||||||||
The fair values of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains (losses) were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Revised | Revised | ||||||||||||||||||||||||
Fair value | $ | 104,960 | $ | 36,170 | $ | 203,384 | $ | 135,202 | |||||||||||||||||
Realized gains | $ | 4,614 | $ | 166 | $ | 7,205 | $ | 2,278 | |||||||||||||||||
Realized losses | (67 | ) | (219 | ) | (309 | ) | (390 | ) | |||||||||||||||||
Net realized gains (losses) | $ | 4,547 | $ | (53 | ) | $ | 6,896 | $ | 1,888 | ||||||||||||||||
Trading securities | ' | ||||||||||||||||||||||||
Investment securities | ' | ||||||||||||||||||||||||
Schedule of net unrealized and realized gains (losses) on trading securities | ' | ||||||||||||||||||||||||
The net unrealized and realized gains (losses) on our trading securities were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Revised | Revised | ||||||||||||||||||||||||
Net unrealized losses on trading securities held at period end | $ | (2,038 | ) | $ | (224 | ) | $ | (1,120 | ) | $ | (433 | ) | |||||||||||||
Net realized gains on trading securities sold or redeemed | 249 | 63 | 279 | 174 | |||||||||||||||||||||
Total | $ | (1,789 | ) | $ | (161 | ) | $ | (841 | ) | $ | (259 | ) |
Transactions_with_Affiliates_o1
Transactions with Affiliates of Fortress or AIG (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ' | ||||||||||||||||
Schedule of subservicing fees and refinancing concessions | ' | ||||||||||||||||
The Owners paid Nationstar fees for its subservicing and to facilitate the repayment of our real estate loans through refinancings with other lenders as follows: | |||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Subservicing fees | $ | 1,221 | $ | 2,132 | $ | 4,922 | $ | 6,556 | |||||||||
Refinancing concessions | $ | — | $ | — | $ | — | $ | 265 | |||||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of principal maturities of long-term debt by type of debt | ' | ||||||||||||||||||||
Principal maturities of long-term debt (excluding projected securitization repayments by period) by type of debt at September 30, 2014 were as follows: | |||||||||||||||||||||
(dollars in thousands) | Retail | Medium | Securitizations | Junior | Total | ||||||||||||||||
Notes | Term | Subordinated | |||||||||||||||||||
Notes | Debt | ||||||||||||||||||||
Interest rates (a) | 6.00%-7.50% | 5.40%-8.25% | 1.76%-5.00% | 6 | % | ||||||||||||||||
Fourth quarter 2014 | $ | 335,486 | $ | — | $ | — | $ | — | $ | 335,486 | |||||||||||
First quarter 2015 | 16,575 | — | — | — | 16,575 | ||||||||||||||||
Second quarter 2015 | 7,092 | — | — | — | 7,092 | ||||||||||||||||
Third quarter 2015 | 23,544 | — | — | — | 23,544 | ||||||||||||||||
Remainder of 2015 | — | 750,000 | — | — | 750,000 | ||||||||||||||||
2016 | — | 375,000 | — | — | 375,000 | ||||||||||||||||
2017 | — | 2,360,837 | — | — | 2,360,837 | ||||||||||||||||
2018 | — | — | — | — | — | ||||||||||||||||
2019-2067 | — | 1,250,000 | — | 350,000 | 1,600,000 | ||||||||||||||||
Securitizations (b) | — | — | 3,055,588 | — | 3,055,588 | ||||||||||||||||
Total principal maturities | $ | 382,697 | $ | 4,735,837 | $ | 3,055,588 | $ | 350,000 | $ | 8,524,122 | |||||||||||
Total carrying amount (c) | $ | 379,585 | $ | 4,253,867 | $ | 3,052,972 | $ | 171,613 | $ | 7,858,037 | |||||||||||
(a) | The interest rates shown are the range of contractual rates in effect at September 30, 2014. | ||||||||||||||||||||
(b) | Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 9 for further information on our long-term debt associated with securitizations. | ||||||||||||||||||||
(c) | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. | ||||||||||||||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Variable Interest Entities | ' | ||||||||
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | ' | ||||||||
The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: | |||||||||
(dollars in thousands) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Finance receivables: | |||||||||
Personal loans | $ | 1,841,139 | $ | 1,572,070 | |||||
SpringCastle Portfolio * | $ | 2,083,145 | $ | — | |||||
Real estate loans | $ | — | $ | 5,595,150 | |||||
Allowance for finance receivable losses | $ | 67,800 | $ | 153,084 | |||||
Restricted cash | $ | 295,693 | $ | 345,906 | |||||
Liabilities | |||||||||
Long-term debt * | $ | 3,052,972 | $ | 5,160,227 | |||||
* | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. | ||||||||
Schedule of sale of previously retained mortgage-backed notes | ' | ||||||||
During the nine months ended September 30, 2013, we sold the following previously retained mortgage-backed and asset-backed notes: | |||||||||
(dollars in thousands) | Principal Amount of | Carrying Amount of | |||||||
Previously Retained Notes Issued | Additional Debt Recorded | ||||||||
Mortgage Securitizations | |||||||||
SLFMT 2012-2 | $ | 20,000 | $ | 20,675 | |||||
SLFMT 2012-3 | $ | 7,500 | $ | 7,753 | |||||
SLFMT 2013-2 | $ | 157,517 | $ | 148,559 | |||||
Consumer Securitizations | |||||||||
SLFMT 2013-B | $ | 114,000 | $ | 111,578 | |||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Schedule of derivative adjustments included in other revenues - other | ' | ||||||||
Derivative adjustments included in other revenues — other consisted of the following: | |||||||||
(dollars in thousands) | Three Months | Nine Months | |||||||
Ended | Ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2013 | ||||||||
Mark to market gains (losses) | $ | 6,260 | $ | (8,244 | ) | ||||
Net interest income | 1,701 | 9,161 | |||||||
Credit valuation adjustment gains | 11 | 50 | |||||||
Other | (292 | ) | (292 | ) | |||||
Total | $ | 7,680 | $ | 675 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income | ' | ||||||||||||||||||||
Changes in accumulated other comprehensive income were as follows: | |||||||||||||||||||||
(dollars in thousands) | Unrealized | Unrealized | Retirement | Foreign | Total | ||||||||||||||||
Gains (Losses) | Gains (Losses) | Plan | Currency | Accumulated | |||||||||||||||||
Investment | Cash Flow | Liabilities | Translation | Other | |||||||||||||||||
Securities | Hedges | Adjustments | Adjustments | Comprehensive | |||||||||||||||||
Income | |||||||||||||||||||||
(Loss) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 14,551 | $ | — | $ | 20,153 | $ | 3,086 | $ | 37,790 | |||||||||||
Other comprehensive income (loss) before reclassifications | (2,491 | ) | — | — | 761 | (1,730 | ) | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1,793 | ) | — | — | — | (1,793 | ) | ||||||||||||||
Balance at end of period | $ | 10,267 | $ | — | $ | 20,153 | $ | 3,847 | $ | 34,267 | |||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||
Balance at beginning of period | $ | 5,501 | $ | — | $ | 8,120 | $ | 6,221 | $ | 19,842 | |||||||||||
Other comprehensive loss before reclassifications | (277 | ) | — | — | (2,056 | ) | (2,333 | ) | |||||||||||||
Reclassification adjustments from accumulated other comprehensive income | 203 | — | — | — | 203 | ||||||||||||||||
Balance at end of period | $ | 5,427 | $ | — | $ | 8,120 | $ | 4,165 | $ | 17,712 | |||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 4,362 | $ | — | $ | 20,153 | $ | 3,580 | $ | 28,095 | |||||||||||
Other comprehensive income before reclassifications | 9,841 | — | — | 267 | 10,108 | ||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (3,936 | ) | — | — | — | (3,936 | ) | ||||||||||||||
Balance at end of period | $ | 10,267 | $ | — | $ | 20,153 | $ | 3,847 | $ | 34,267 | |||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||
Balance at beginning of period | $ | 13,545 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 25,896 | |||||||||||
Other comprehensive income (loss) before reclassifications | (7,076 | ) | — | — | 38 | (7,038 | ) | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1,042 | ) | (104 | ) | — | — | (1,146 | ) | |||||||||||||
Balance at end of period | $ | 5,427 | $ | — | $ | 8,120 | $ | 4,165 | $ | 17,712 | |||||||||||
Schedule of reclassification adjustments from accumulated other comprehensive income | ' | ||||||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income to the applicable line item on our condensed consolidated statements of operations were as follows: | |||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Revised | Revised | ||||||||||||||||||||
Unrealized gains (losses) on investment securities: | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | $ | 2,758 | $ | (312 | ) | $ | 6,055 | $ | 1,603 | ||||||||||||
Income tax effect | (965 | ) | 109 | (2,119 | ) | (561 | ) | ||||||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, net of taxes | 1,793 | (203 | ) | 3,936 | 1,042 | ||||||||||||||||
Unrealized gains on cash flow hedges: | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income to interest expense, before taxes | — | — | — | 160 | |||||||||||||||||
Income tax effect | — | — | — | (56 | ) | ||||||||||||||||
Reclassification from accumulated other comprehensive income to interest expense, net of taxes | — | — | — | 104 | |||||||||||||||||
Total | $ | 1,793 | $ | (203 | ) | $ | 3,936 | $ | 1,146 | ||||||||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of components of net periodic benefit cost | ' | ||||||||||||||||
The following table presents the components of net periodic benefit cost with respect to our defined benefit pension plans and other postretirement benefit plans: | |||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Pension | |||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Interest cost | $ | 3,805 | $ | 3,589 | $ | 11,441 | $ | 10,769 | |||||||||
Expected return on assets | (4,107 | ) | (3,874 | ) | (12,326 | ) | (11,622 | ) | |||||||||
Amortization of net loss | 2 | 12 | 4 | 35 | |||||||||||||
Net periodic benefit cost | $ | (300 | ) | $ | (273 | ) | $ | (881 | ) | $ | (818 | ) | |||||
Postretirement | |||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 20 | $ | 81 | $ | 64 | $ | 242 | |||||||||
Interest cost | 21 | 64 | 73 | 193 | |||||||||||||
Amortization of net gain | (81 | ) | — | (215 | ) | — | |||||||||||
Net periodic benefit cost | $ | (40 | ) | $ | 145 | $ | (78 | ) | $ | 435 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of information about the Company's segments as well as reconciliations to condensed consolidated financial statement amounts | ' | ||||||||||||||||||||||||||||
The following tables present information about the Company’s segments as well as reconciliations to the condensed consolidated financial statement amounts. | |||||||||||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Acquisitions and Servicing | Real Estate | Other | Push-down | Consolidated | ||||||||||||||||||||||
Accounting | Total | ||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 234,659 | $ | — | $ | 83,732 | $ | 52,994 | $ | 3,852 | $ | 10,077 | $ | 385,314 | |||||||||||||||
Finance receivables held for sale originated as held for investment | — | — | — | 40,327 | — | 6,175 | 46,502 | ||||||||||||||||||||||
Total interest income | 234,659 | — | 83,732 | 93,321 | 3,852 | 16,252 | 431,816 | ||||||||||||||||||||||
Interest expense | 40,234 | — | 11,593 | 82,465 | 1,846 | 36,354 | 172,492 | ||||||||||||||||||||||
Net interest income | 194,425 | — | 72,139 | 10,856 | 2,006 | (20,102 | ) | 259,324 | |||||||||||||||||||||
Provision for finance receivable losses | 55,357 | — | 18,072 | 37,239 | 1,291 | (19,845 | ) | 92,114 | |||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 139,068 | — | 54,067 | (26,383 | ) | 715 | (257 | ) | 167,210 | ||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | — | 43,984 | — | — | 27 | (1 | ) | 44,010 | |||||||||||||||||||||
Investment | — | 13,722 | — | (953 | ) | — | (1,563 | ) | 11,206 | ||||||||||||||||||||
Intersegment - insurance commissions | 19,489 | (19,708 | ) | — | 219 | — | — | — | |||||||||||||||||||||
Net gain on fair value adjustments on debt | — | — | 1,523 | — | — | — | 1,523 | ||||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets * | — | — | — | 286,357 | — | 330,177 | 616,534 | ||||||||||||||||||||||
Other | 609 | 2,428 | — | (2,163 | ) | 1,372 | (12,700 | ) | (10,454 | ) | |||||||||||||||||||
Total other revenues | 20,098 | 40,426 | 1,523 | 283,460 | 1,399 | 315,913 | 662,819 | ||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 61,751 | 4,790 | 2 | 17,185 | 1,916 | (42 | ) | 85,602 | |||||||||||||||||||||
Other operating expenses | 41,500 | 3,456 | 11,787 | 17,890 | 1,092 | 963 | 76,688 | ||||||||||||||||||||||
Insurance losses and loss adjustment expenses | — | 20,451 | — | — | — | (310 | ) | 20,141 | |||||||||||||||||||||
Total other expenses | 103,251 | 28,697 | 11,789 | 35,075 | 3,008 | 611 | 182,431 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | 55,915 | 11,729 | 43,801 | 222,002 | (894 | ) | 315,045 | 647,598 | |||||||||||||||||||||
Income before provision for income taxes attributable to non-controlling interests | — | — | 23,225 | — | — | — | 23,225 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | $ | 55,915 | $ | 11,729 | $ | 20,576 | $ | 222,002 | $ | (894 | ) | $ | 315,045 | $ | 624,373 | ||||||||||||||
* | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the date the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sale of these loans. | ||||||||||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Push-down | Consolidated | |||||||||||||||||||||||
Accounting | Total | ||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||||||||||
Interest income | $ | 188,294 | $ | — | $ | 168,873 | $ | 10,000 | $ | 49,974 | $ | 417,141 | |||||||||||||||||
Interest expense | 38,254 | — | 129,776 | 3,329 | 33,911 | 205,270 | |||||||||||||||||||||||
Net interest income | 150,040 | — | 39,097 | 6,671 | 16,063 | 211,871 | |||||||||||||||||||||||
Provision for finance receivable losses | 38,111 | — | 52,547 | 2,364 | 8,368 | 101,390 | |||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 111,929 | — | (13,450 | ) | 4,307 | 7,695 | 110,481 | ||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | — | 38,266 | — | 18 | (7 | ) | 38,277 | ||||||||||||||||||||||
Investment | — | 8,313 | — | — | (1,781 | ) | 6,532 | ||||||||||||||||||||||
Intersegment - insurance commissions | 15,086 | (15,097 | ) | 42 | (31 | ) | — | — | |||||||||||||||||||||
Net loss on repurchases and repayments of debt | (2,891 | ) | — | (15,817 | ) | (706 | ) | (14,158 | ) | (33,572 | ) | ||||||||||||||||||
Net gain (loss) on fair value adjustments on debt | — | — | 12,216 | — | (12,216 | ) | — | ||||||||||||||||||||||
Other | 492 | 2,426 | (1,842 | ) | 4,404 | 34 | 5,514 | ||||||||||||||||||||||
Total other revenues | 12,687 | 33,908 | (5,401 | ) | 3,685 | (28,128 | ) | 16,751 | |||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 61,398 | 4,480 | 7,551 | 136,249 | (53 | ) | 209,625 | ||||||||||||||||||||||
Other operating expenses | 30,867 | 3,288 | 14,789 | 2,063 | 1,103 | 52,110 | |||||||||||||||||||||||
Insurance losses and loss adjustment expenses | — | 16,849 | — | — | (299 | ) | 16,550 | ||||||||||||||||||||||
Total other expenses | 92,265 | 24,617 | 22,340 | 138,312 | 751 | 278,285 | |||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 32,351 | $ | 9,291 | $ | (41,191 | ) | $ | (130,320 | ) | $ | (21,184 | ) | $ | (151,053 | ) | |||||||||||||
(dollars in thousands) | Consumer | Insurance | Acquisitions | Real Estate | Other | Push-down | Consolidated | ||||||||||||||||||||||
and | Accounting | Total | |||||||||||||||||||||||||||
Servicing | Adjustments | ||||||||||||||||||||||||||||
At or for the Nine Months Ended | |||||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 662,979 | $ | — | $ | 83,732 | $ | 334,070 | $ | 13,268 | $ | 77,945 | $ | 1,171,994 | |||||||||||||||
Finance receivables held for sale originated as held for investment | — | — | — | 47,457 | — | 6,287 | 53,744 | ||||||||||||||||||||||
Total interest income | 662,979 | — | 83,732 | 381,527 | 13,268 | 84,232 | 1,225,738 | ||||||||||||||||||||||
Interest expense | 121,428 | — | 11,593 | 286,955 | 5,821 | 100,238 | 526,035 | ||||||||||||||||||||||
Net interest income | 541,551 | — | 72,139 | 94,572 | 7,447 | (16,006 | ) | 699,703 | |||||||||||||||||||||
Provision for finance receivable losses | 147,697 | — | 18,072 | 119,228 | 6,557 | (18,182 | ) | 273,372 | |||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 393,854 | — | 54,067 | (24,656 | ) | 890 | 2,176 | 426,331 | |||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | — | 125,023 | — | — | 98 | (5 | ) | 125,116 | |||||||||||||||||||||
Investment | — | 35,652 | — | (953 | ) | — | (3,433 | ) | 31,266 | ||||||||||||||||||||
Intersegment - insurance commissions | 51,390 | (51,822 | ) | — | 442 | (10 | ) | — | — | ||||||||||||||||||||
Net gain (loss) on repurchases and repayments of debt | (1,426 | ) | — | — | (10,025 | ) | (48 | ) | 4,884 | (6,615 | ) | ||||||||||||||||||
Net gain (loss) on fair value adjustments on debt | — | — | 1,523 | 8,298 | — | (8,298 | ) | 1,523 | |||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets * | — | — | — | 201,362 | — | 505,158 | 706,520 | ||||||||||||||||||||||
Other | 1,731 | 6,103 | — | (3,070 | ) | 4,696 | (12,700 | ) | (3,240 | ) | |||||||||||||||||||
Total other revenues | 51,695 | 114,956 | 1,523 | 196,054 | 4,736 | 485,606 | 854,570 | ||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 190,951 | 14,500 | 2 | 34,558 | 9,183 | (129 | ) | 249,065 | |||||||||||||||||||||
Other operating expenses | 106,780 | 10,291 | 11,787 | 42,088 | 4,839 | 2,909 | 178,694 | ||||||||||||||||||||||
Insurance losses and loss adjustment expenses | — | 57,923 | — | — | — | (750 | ) | 57,173 | |||||||||||||||||||||
Total other expenses | 297,731 | 82,714 | 11,789 | 76,646 | 14,022 | 2,030 | 484,932 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | 147,818 | 32,242 | 43,801 | 94,752 | (8,396 | ) | 485,752 | 795,969 | |||||||||||||||||||||
Income before provision for income taxes attributable to non-controlling interests | — | — | 23,225 | — | — | — | 23,225 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | $ | 147,818 | $ | 32,242 | $ | 20,576 | $ | 94,752 | $ | (8,396 | ) | $ | 485,752 | $ | 772,744 | ||||||||||||||
Assets | $ | 3,668,399 | $ | 1,060,074 | $ | 2,249,621 | $ | 3,633,492 | $ | 714,987 | $ | 8,617 | $ | 11,335,190 | |||||||||||||||
* | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. | ||||||||||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Push-down | Consolidated | |||||||||||||||||||||||
Accounting | Total | ||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||
At or for the Nine Months Ended | |||||||||||||||||||||||||||||
September 30, 2013 - Revised | |||||||||||||||||||||||||||||
Interest income | $ | 519,315 | $ | — | $ | 529,447 | $ | 37,630 | $ | 147,112 | $ | 1,233,504 | |||||||||||||||||
Interest expense | 111,393 | — | 421,989 | 12,198 | 104,281 | 649,861 | |||||||||||||||||||||||
Net interest income | 407,922 | — | 107,458 | 25,432 | 42,831 | 583,643 | |||||||||||||||||||||||
Provision for finance receivable losses | 52,126 | — | 189,600 | (3,384 | ) | 21,663 | 260,005 | ||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 355,796 | — | (82,142 | ) | 28,816 | 21,168 | 323,638 | ||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | — | 107,114 | — | 58 | (28 | ) | 107,144 | ||||||||||||||||||||||
Investment | — | 31,792 | — | — | (5,934 | ) | 25,858 | ||||||||||||||||||||||
Intersegment - insurance commissions | 43,296 | (43,302 | ) | 100 | (94 | ) | — | — | |||||||||||||||||||||
Net gain (loss) on repurchases and repayments of debt | (4,391 | ) | — | (35,417 | ) | (977 | ) | 6,976 | (33,809 | ) | |||||||||||||||||||
Net gain (loss) on fair value adjustments on debt | — | — | 45,427 | — | (45,427 | ) | — | ||||||||||||||||||||||
Other | 1,256 | 6,797 | (1,372 | ) | 14,328 | (135 | ) | 20,874 | |||||||||||||||||||||
Total other revenues | 40,161 | 102,401 | 8,738 | 13,315 | (44,548 | ) | 120,067 | ||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 182,051 | 11,402 | 20,541 | 149,329 | (160 | ) | 363,163 | ||||||||||||||||||||||
Other operating expenses | 89,642 | 8,369 | 43,431 | 6,174 | 3,418 | 151,034 | |||||||||||||||||||||||
Insurance losses and loss adjustment expenses | — | 48,373 | — | — | (723 | ) | 47,650 | ||||||||||||||||||||||
Total other expenses | 271,693 | 68,144 | 63,972 | 155,503 | 2,535 | 561,847 | |||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 124,264 | $ | 34,257 | $ | (137,376 | ) | $ | (113,372 | ) | $ | (25,915 | ) | $ | (118,142 | ) | |||||||||||||
Assets | $ | 3,065,463 | $ | 913,440 | $ | 8,761,219 | $ | 1,801,248 | $ | (639,502 | ) | $ | 13,901,868 | ||||||||||||||||
Prior_Period_Revisions_Tables
Prior Period Revisions (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of revised condensed consolidated financial statements | ' | ||||||||||||||||||||||||||||||||
The following table reconciles the amounts previously reported in our condensed consolidated statement of operations to the corresponding revised amounts. The “Out-of-Period” column reflects the previously disclosed out-of period adjustments that are now being corrected in the appropriate periods. The “Adjustments” column reflects the corrections of the errors discovered during the fourth quarter of 2013. | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 (Unaudited) | September 30, 2013 (Unaudited) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | As Reported | Out-of-Period | Adjustments | As Revised | As Reported | Out-of-Period | Adjustments | As Revised | |||||||||||||||||||||||||
Interest income | $ | 417,627 | $ | — | $ | (486 | ) | $ | 417,141 | $ | 1,235,483 | $ | — | $ | (1,979 | ) | $ | 1,233,504 | |||||||||||||||
Interest expense | 205,036 | — | 234 | 205,270 | 646,932 | — | 2,929 | 649,861 | |||||||||||||||||||||||||
Net interest income | 212,591 | — | (720 | ) | 211,871 | 588,551 | — | (4,908 | ) | 583,643 | |||||||||||||||||||||||
Provision for finance receivable losses | 97,414 | 4,389 | (413 | ) | 101,390 | 262,142 | (860 | ) | (1,277 | ) | 260,005 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 115,177 | (4,389 | ) | (307 | ) | 110,481 | 326,409 | 860 | (3,631 | ) | 323,638 | ||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||||||
Insurance | 38,277 | — | — | 38,277 | 107,144 | — | — | 107,144 | |||||||||||||||||||||||||
Investment | 6,756 | — | (224 | ) | 6,532 | 26,291 | — | (433 | ) | 25,858 | |||||||||||||||||||||||
Net loss on repurchases and repayments of debt | (34,503 | ) | — | 931 | (33,572 | ) | (34,558 | ) | — | 749 | (33,809 | ) | |||||||||||||||||||||
Other | 5,514 | — | — | 5,514 | 20,874 | — | — | 20,874 | |||||||||||||||||||||||||
Total other revenues | 16,044 | — | 707 | 16,751 | 119,751 | — | 316 | 120,067 | |||||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Salaries and benefits | 209,625 | — | — | 209,625 | 363,163 | — | — | 363,163 | |||||||||||||||||||||||||
Other operating expenses | 52,110 | — | — | 52,110 | 151,034 | — | — | 151,034 | |||||||||||||||||||||||||
Insurance losses and loss adjustment expenses | 16,550 | — | — | 16,550 | 47,650 | — | — | 47,650 | |||||||||||||||||||||||||
Total other expenses | 278,285 | — | — | 278,285 | 561,847 | — | — | 561,847 | |||||||||||||||||||||||||
Loss before benefit from income taxes | (147,064 | ) | (4,389 | ) | 400 | (151,053 | ) | (115,687 | ) | 860 | (3,315 | ) | (118,142 | ) | |||||||||||||||||||
Benefit from income taxes | (55,669 | ) | (1,624 | ) | 148 | (57,145 | ) | (42,001 | ) | (869 | ) | (1,227 | ) | (44,097 | ) | ||||||||||||||||||
Net loss | $ | (91,395 | ) | $ | (2,765 | ) | $ | 252 | $ | (93,908 | ) | $ | (73,686 | ) | $ | 1,729 | $ | (2,088 | ) | $ | (74,045 | ) | |||||||||||
The following table presents the amounts previously reported in our condensed consolidated statement of comprehensive income and the corresponding revised amounts. | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, 2013 (Unaudited) | September 30, 2013 (Unaudited) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | As Reported | As Revised | As Reported | As Revised | |||||||||||||||||||||||||||||
Net loss | $ | (91,395 | ) | $ | (93,908 | ) | $ | (73,686 | ) | $ | (74,045 | ) | |||||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||||||||||||
Net unrealized losses on: | |||||||||||||||||||||||||||||||||
Investment securities on which other-than-temporary impairments were taken | (17 | ) | (17 | ) | (135 | ) | (135 | ) | |||||||||||||||||||||||||
All other investment securities | (314 | ) | (412 | ) | (10,747 | ) | (10,747 | ) | |||||||||||||||||||||||||
Foreign currency translation adjustments | (2,056 | ) | (2,056 | ) | 38 | 38 | |||||||||||||||||||||||||||
Income tax effect: | |||||||||||||||||||||||||||||||||
Net unrealized losses on: | |||||||||||||||||||||||||||||||||
Investment securities on which other-than-temporary impairments were taken | 6 | 6 | 47 | 47 | |||||||||||||||||||||||||||||
All other investment securities | 110 | 146 | 3,761 | 3,759 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax, before reclassification adjustments | (2,271 | ) | (2,333 | ) | (7,036 | ) | (7,038 | ) | |||||||||||||||||||||||||
Reclassification adjustments included in net loss: | |||||||||||||||||||||||||||||||||
Net realized (gains) losses on investment securities | (10 | ) | 312 | (2,036 | ) | (1,603 | ) | ||||||||||||||||||||||||||
Cash flow hedges | — | — | (160 | ) | (160 | ) | |||||||||||||||||||||||||||
Income tax effect: | |||||||||||||||||||||||||||||||||
Net realized gains (losses) on investment securities | 4 | (109 | ) | 713 | 561 | ||||||||||||||||||||||||||||
Cash flow hedges | — | — | 56 | 56 | |||||||||||||||||||||||||||||
Reclassification adjustments included in net loss, net of tax | (6 | ) | 203 | (1,427 | ) | (1,146 | ) | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (2,277 | ) | (2,130 | ) | (8,463 | ) | (8,184 | ) | |||||||||||||||||||||||||
Comprehensive loss | $ | (93,672 | ) | $ | (96,038 | ) | $ | (82,149 | ) | $ | (82,229 | ) | |||||||||||||||||||||
The following table presents the amounts previously reported in our condensed consolidated statement of cash flows and the corresponding revised amounts and includes additional corrections to the classification of certain line items within our condensed consolidated statement of cash flows. | |||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, 2013 (Unaudited) | |||||||||||||||||||||||||||||||||
(dollars in thousands) | As Reported | As Revised | |||||||||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||||
Net loss | $ | (73,686 | ) | $ | (74,045 | ) | |||||||||||||||||||||||||||
Reconciling adjustments: | |||||||||||||||||||||||||||||||||
Provision for finance receivable losses | 262,142 | 260,005 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 48,085 | 52,993 | |||||||||||||||||||||||||||||||
Deferral of finance receivable origination costs | (42,141 | ) | — | ||||||||||||||||||||||||||||||
Deferred income tax benefit | (126,924 | ) | (109,181 | ) | |||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | 17,075 | 33,809 | |||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 131,250 | 131,250 | |||||||||||||||||||||||||||||||
Other | (445 | ) | (445 | ) | |||||||||||||||||||||||||||||
Cash flows due to changes in: | |||||||||||||||||||||||||||||||||
Other assets and other liabilities | 59,549 | 90,572 | |||||||||||||||||||||||||||||||
Insurance claims and policyholder liabilities | 14,917 | 14,917 | |||||||||||||||||||||||||||||||
Taxes receivable and payable | (30,731 | ) | (46,147 | ) | |||||||||||||||||||||||||||||
Accrued interest and finance charges | 2,491 | (29,957 | ) | ||||||||||||||||||||||||||||||
Restricted cash not reinvested | (5,716 | ) | (5,715 | ) | |||||||||||||||||||||||||||||
Other, net | (823 | ) | (824 | ) | |||||||||||||||||||||||||||||
Net cash provided by operating activities | 255,043 | 317,232 | |||||||||||||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||||||||
Finance receivables originated or purchased, net of deferred origination costs | (1,589,051 | ) | (1,631,192 | ) | |||||||||||||||||||||||||||||
Principal collections on finance receivables | 1,957,957 | 1,990,405 | |||||||||||||||||||||||||||||||
Available-for-sale investment securities purchased | (96,574 | ) | (90,279 | ) | |||||||||||||||||||||||||||||
Trading investment securities purchased | — | (6,295 | ) | ||||||||||||||||||||||||||||||
Available-for-sale investment securities called, sold, and matured | 183,603 | 176,111 | |||||||||||||||||||||||||||||||
Trading investment securities called, sold, and matured | — | 7,492 | |||||||||||||||||||||||||||||||
Change in notes receivable from parent and affiliate | (30,750 | ) | (30,750 | ) | |||||||||||||||||||||||||||||
Change in restricted cash | (227,213 | ) | (227,213 | ) | |||||||||||||||||||||||||||||
Proceeds from sale of real estate owned | 87,747 | 87,747 | |||||||||||||||||||||||||||||||
Other, net | (12 | ) | (12 | ) | |||||||||||||||||||||||||||||
Net cash provided by investing activities | 285,707 | 276,014 | |||||||||||||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt, net of commissions | 3,477,534 | 3,459,579 | |||||||||||||||||||||||||||||||
Repayment of long-term debt | (4,346,910 | ) | (4,381,451 | ) | |||||||||||||||||||||||||||||
Capital contributions from parent | 21,000 | 21,000 | |||||||||||||||||||||||||||||||
Net cash used for financing activities | (848,376 | ) | (900,872 | ) | |||||||||||||||||||||||||||||
Effect of exchange rate changes | (835 | ) | (835 | ) | |||||||||||||||||||||||||||||
Net change in cash and cash equivalents | (308,461 | ) | (308,461 | ) | |||||||||||||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,357,212 | 1,357,212 | |||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,048,751 | $ | 1,048,751 | |||||||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Total | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair | Carrying | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Value | Value | |||||||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,919,184 | $ | — | $ | — | $ | 1,919,184 | $ | 1,919,184 | ||||||||||||||||||||||||||||||||||||||||
Investment securities | — | 1,683,120 | 13,750 | 1,696,870 | 1,696,870 | |||||||||||||||||||||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 6,731,196 | 6,731,196 | 6,212,738 | |||||||||||||||||||||||||||||||||||||||||||||
Finance receivables held for sale | — | — | 498,872 | 498,872 | 493,196 | |||||||||||||||||||||||||||||||||||||||||||||
Note receivable from parent | — | 167,989 | — | 167,989 | 167,989 | |||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 311,425 | — | — | 311,425 | 311,425 | |||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 80,991 | 80,991 | 87,553 | |||||||||||||||||||||||||||||||||||||||||||||
Escrow advance receivable | — | — | 7,728 | 7,728 | 7,728 | |||||||||||||||||||||||||||||||||||||||||||||
Receivables from parent and affiliates | — | 20,069 | — | 20,069 | 20,069 | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 8,812,305 | $ | — | $ | 8,812,305 | $ | 7,858,037 | ||||||||||||||||||||||||||||||||||||||||
Payables to parent and affiliates | — | 40,561 | — | 40,561 | 40,561 | |||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 374,835 | $ | — | $ | — | $ | 374,835 | $ | 374,835 | ||||||||||||||||||||||||||||||||||||||||
Investment securities | — | 531,997 | 23,617 | 555,614 | 555,614 | |||||||||||||||||||||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 11,113,980 | 11,113,980 | 10,811,664 | |||||||||||||||||||||||||||||||||||||||||||||
Note receivable from parent | — | 167,989 | — | 167,989 | 167,989 | |||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 358,759 | — | — | 358,759 | 358,759 | |||||||||||||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 94,681 | 94,681 | 102,200 | |||||||||||||||||||||||||||||||||||||||||||||
Escrow advance receivable | — | — | 23,527 | 23,527 | 23,527 | |||||||||||||||||||||||||||||||||||||||||||||
Receivables from parent and affiliates | — | 39,364 | — | 39,364 | 39,364 | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 11,776,576 | $ | — | $ | 11,776,576 | $ | 10,640,728 | ||||||||||||||||||||||||||||||||||||||||
Payables to parent and affiliates | — | 38,463 | — | 38,463 | 38,463 | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of information about assets and liabilities measured at fair value on a recurring basis and the fair value hierarchy based on the levels of inputs utilized to determine such fair value | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents changes for the three months ended September 30, 2014 in Level 3 assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, sales, issues, settlements(a) | Transfers into | Transfers | Balance | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning | Other revenues | Other comprehensive | Level 3 (b) | out of | at end of | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | of period | income (loss) | Level 3 | period | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 4,160 | $ | (27 | ) | $ | (8 | ) | $ | — | $ | — | $ | — | $ | 4,125 | ||||||||||||||||||||||||||||||||||
RMBS | 65 | (4 | ) | (6 | ) | — | — | — | 55 | |||||||||||||||||||||||||||||||||||||||||
CMBS | 20 | — | (5 | ) | — | — | — | 15 | ||||||||||||||||||||||||||||||||||||||||||
Total | 4,245 | (31 | ) | (19 | ) | — | — | — | 4,195 | |||||||||||||||||||||||||||||||||||||||||
Other long-term investments | 1,254 | — | 176 | — | — | — | 1,430 | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 5,499 | (31 | ) | 157 | — | — | — | 5,625 | ||||||||||||||||||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | — | — | — | — | 361 | — | 361 | |||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | 6,477 | (24 | ) | — | (23 | ) | — | — | 6,430 | |||||||||||||||||||||||||||||||||||||||||
Total trading securities | 6,477 | (24 | ) | — | (23 | ) | 361 | — | 6,791 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 11,976 | $ | (55 | ) | $ | 157 | $ | (23 | ) | $ | 361 | $ | — | $ | 12,416 | ||||||||||||||||||||||||||||||||||
(a) | “Purchases, sales, issues, and settlements” column consists only of settlements. There were no purchases, sales, or issues of investment securities for the three months ended September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||
(b) | During the three months ended September 30, 2014, we transferred $0.4 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | |||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents information about our assets and liabilities measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 596,127 | $ | — | $ | — | $ | 596,127 | ||||||||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 56,198 | — | 56,198 | ||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 118,452 | — | 118,452 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | — | 258,625 | 4,125 | 262,750 | ||||||||||||||||||||||||||||||||||||||||||||||
RMBS | — | 79,363 | 55 | 79,418 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | — | 22,083 | 15 | 22,098 | ||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | — | 18,569 | — | 18,569 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | — | 553,290 | 4,195 | 557,485 | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | — | 7,043 | — | 7,043 | ||||||||||||||||||||||||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1,430 | 1,430 | ||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 560,333 | 5,625 | 565,958 | ||||||||||||||||||||||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 134,381 | — | 134,381 | ||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 87,340 | — | 87,340 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | — | 443,884 | — | 443,884 | ||||||||||||||||||||||||||||||||||||||||||||||
RMBS | — | 64,166 | 361 | 64,527 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | — | 106,115 | — | 106,115 | ||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | — | 286,901 | 6,430 | 293,331 | ||||||||||||||||||||||||||||||||||||||||||||||
Total trading securities | — | 1,122,787 | 6,791 | 1,129,578 | ||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | — | 1,683,120 | 12,416 | 1,695,536 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash in mutual funds | 290,495 | — | — | 290,495 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 886,622 | $ | 1,683,120 | $ | 12,416 | $ | 2,582,158 | ||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 317,266 | $ | — | $ | 317,266 | ||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 185,829 | $ | — | $ | — | $ | 185,829 | ||||||||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 58,633 | — | 58,633 | ||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 102,745 | — | 102,745 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | — | 225,312 | 12,604 | 237,916 | ||||||||||||||||||||||||||||||||||||||||||||||
RMBS | — | 82,510 | 113 | 82,623 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | — | 7,545 | 2 | 7,547 | ||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | — | 3,176 | 800 | 3,976 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | — | 479,921 | 13,519 | 493,440 | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | — | 7,805 | — | 7,805 | ||||||||||||||||||||||||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1,269 | 1,269 | ||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 487,726 | 14,788 | 502,514 | ||||||||||||||||||||||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | — | 1,837 | — | 1,837 | ||||||||||||||||||||||||||||||||||||||||||||||
RMBS | — | 10,671 | — | 10,671 | ||||||||||||||||||||||||||||||||||||||||||||||
CMBS | — | 29,897 | — | 29,897 | ||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | — | 1,866 | 7,383 | 9,249 | ||||||||||||||||||||||||||||||||||||||||||||||
Total trading securities | — | 44,271 | 7,383 | 51,654 | ||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | — | 531,997 | 22,171 | 554,168 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash in mutual funds | 321,617 | — | — | 321,617 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 507,446 | $ | 531,997 | $ | 22,171 | $ | 1,061,614 | ||||||||||||||||||||||||||||||||||||||||||
(a) | Other long-term investments excludes our interest in a limited partnership of $0.5 million at September 30, 2014 and $0.6 million at December 31, 2013 that we account for using the equity method. | |||||||||||||||||||||||||||||||||||||||||||||||||
(b) | Common stocks not carried at fair value totaled $0.9 million at September 30, 2014 and December 31, 2013 and therefore have been excluded from the table above. | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in level 3 assets and liabilities measured at fair value on recurring basis detail of purchases, sales, issuances, and settlements | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents the detail of purchases, sales, issuances, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2013: | The following table presents the detail of purchases, sales, issuances, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Purchases | Sales | Issues | Settlements | Total | (dollars in thousands) | Purchases | Sales | Issues | Settlements | Total | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 - Revised | September 30, 2013 - Revised | |||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | Investment securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | Available-for-sale securities: | |||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | Bonds: | |||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | — | $ | — | $ | — | $ | 2,016 | Corporate debt | $ | 2,016 | $ | — | $ | — | $ | (481 | ) | $ | 1,535 | ||||||||||||||||||||||||||||
Trading securities: | CMBS | — | — | — | (149 | ) | (149 | ) | ||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | — | — | — | (75 | ) | (75 | ) | CDO/ABS | — | — | — | (400 | ) | (400 | ) | |||||||||||||||||||||||||||||||||||
Total | $ | 2,016 | $ | — | $ | — | $ | (75 | ) | $ | 1,941 | Total | 2,016 | — | — | (1,030 | ) | 986 | ||||||||||||||||||||||||||||||||
Other long-term investments | — | — | — | (11 | ) | (11 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 2,016 | — | — | (1,041 | ) | 975 | ||||||||||||||||||||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | — | — | — | (4,695 | ) | (4,695 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,016 | $ | — | $ | — | $ | (5,736 | ) | $ | (3,720 | ) | ||||||||||||||||||||||||||||||||||||||
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents changes for the nine months ended September 30, 2013 in Level 3 assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | ||||||||||||||||||||||||||||||||||||||||||||||
sales, | Level 3 | out of | at end of | |||||||||||||||||||||||||||||||||||||||||||||||
issues, | Level 3 | period | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Balance at | Other | Other | settlements * | ||||||||||||||||||||||||||||||||||||||||||||||
beginning | revenues | comprehensive | ||||||||||||||||||||||||||||||||||||||||||||||||
of period | income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 - Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 13,417 | $ | (166 | ) | $ | 304 | $ | 1,535 | $ | — | $ | — | $ | 15,090 | |||||||||||||||||||||||||||||||||||
RMBS | 74 | (35 | ) | 46 | — | — | — | 85 | ||||||||||||||||||||||||||||||||||||||||||
CMBS | 153 | (8 | ) | 6 | (149 | ) | — | — | 2 | |||||||||||||||||||||||||||||||||||||||||
CDO/ABS | 1,200 | — | — | (400 | ) | — | — | 800 | ||||||||||||||||||||||||||||||||||||||||||
Total | 14,844 | (209 | ) | 356 | 986 | — | — | 15,977 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term investments | 1,380 | 2 | 4 | (11 | ) | — | — | 1,375 | ||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 16,224 | (207 | ) | 360 | 975 | — | — | 17,352 | ||||||||||||||||||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | 12,192 | 562 | (426 | ) | (4,695 | ) | — | — | 7,633 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 28,416 | $ | 355 | $ | (66 | ) | $ | (3,720 | ) | $ | — | $ | — | $ | 24,985 | ||||||||||||||||||||||||||||||||||
* | The detail of purchases, sales, issues, and settlements for the nine months ended September 30, 2013 is presented in the table below. | |||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents changes for the nine months ended September 30, 2014 in Level 3 assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | ||||||||||||||||||||||||||||||||||||||||||||||
sales, | Level 3 (b) | out of | at end of | |||||||||||||||||||||||||||||||||||||||||||||||
issues, | Level 3 (c) | period | ||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Balance at | Other | Other | settlements(a) | ||||||||||||||||||||||||||||||||||||||||||||||
beginning | revenues | comprehensive | ||||||||||||||||||||||||||||||||||||||||||||||||
of period | income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 12,604 | $ | 177 | $ | (263 | ) | $ | (8,393 | ) | $ | — | $ | — | $ | 4,125 | ||||||||||||||||||||||||||||||||||
RMBS | 113 | (14 | ) | (44 | ) | — | — | — | 55 | |||||||||||||||||||||||||||||||||||||||||
CMBS | 2 | — | 13 | — | — | — | 15 | |||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | 800 | — | 3 | — | — | (803 | ) | — | ||||||||||||||||||||||||||||||||||||||||||
Total | 13,519 | 163 | (291 | ) | (8,393 | ) | — | (803 | ) | 4,195 | ||||||||||||||||||||||||||||||||||||||||
Other long-term investments | 1,269 | — | 251 | (90 | ) | — | — | 1,430 | ||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 14,788 | 163 | (40 | ) | (8,483 | ) | — | (803 | ) | 5,625 | ||||||||||||||||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | — | 4 | — | (88 | ) | 1,602 | (1,157 | ) | 361 | |||||||||||||||||||||||||||||||||||||||||
CDO/ABS | 7,383 | 5 | — | (155 | ) | — | (803 | ) | 6,430 | |||||||||||||||||||||||||||||||||||||||||
Total trading securities | 7,383 | 9 | — | (243 | ) | 1,602 | (1,960 | ) | 6,791 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 22,171 | $ | 172 | $ | (40 | ) | $ | (8,726 | ) | $ | 1,602 | $ | (2,763 | ) | $ | 12,416 | |||||||||||||||||||||||||||||||||
(a) | “Purchases, sales, issues, and settlements” column only consist of settlements. There were no purchases, sales, or issues of investment securities for the nine months ended September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||
(b) | During the nine months ended September 30, 2014, we transferred $1.6 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | |||||||||||||||||||||||||||||||||||||||||||||||||
(c) | During the nine months ended September 30, 2014, we transferred RMBS and CDO/ABS securities totaling $2.8 million out of Level 3 primarily related to the re-evaluated observability of pricing inputs. | |||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents changes for the three months ended September 30, 2013 in Level 3 assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | ||||||||||||||||||||||||||||||||||||||||||||||
sales, | Level 3 | out of | at end of | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at | issues, | Level 3 | period | |||||||||||||||||||||||||||||||||||||||||||||||
beginning | settlements* | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | of period | Other | Other | |||||||||||||||||||||||||||||||||||||||||||||||
revenues | comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||
income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2013 - Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 13,114 | $ | (58 | ) | $ | 18 | $ | 2,016 | $ | — | $ | — | $ | 15,090 | |||||||||||||||||||||||||||||||||||
RMBS | 218 | — | (133 | ) | — | — | — | 85 | ||||||||||||||||||||||||||||||||||||||||||
CMBS | 2 | — | — | — | — | — | 2 | |||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | 800 | — | — | — | — | — | 800 | |||||||||||||||||||||||||||||||||||||||||||
Total | 14,134 | (58 | ) | (115 | ) | 2,016 | — | — | 15,977 | |||||||||||||||||||||||||||||||||||||||||
Other long-term investments | 1,478 | — | (103 | ) | — | — | — | 1,375 | ||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 15,612 | (58 | ) | (218 | ) | 2,016 | — | — | 17,352 | |||||||||||||||||||||||||||||||||||||||||
Trading securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | 7,663 | 49 | (4 | ) | (75 | ) | — | — | 7,633 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 23,275 | $ | (9 | ) | $ | (222 | ) | $ | 1,941 | $ | — | $ | — | $ | 24,985 | ||||||||||||||||||||||||||||||||||
* | The detail of purchases, sales, issues, and settlements for the three months ended September 30, 2013 is presented in the table below. | |||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative information about Level 3 inputs for assets measured on a recurring basis | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at September 30, 2014 and December 31, 2013 is as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Range (Weighted Average) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | Discounted cash flows | Yield | 0.89% (a) | 2.68% – 8.48% (4.67%) | ||||||||||||||||||||||||||||||||||||||||||||||
RMBS | Discounted cash flows | Spread | 6.94% (b) | |||||||||||||||||||||||||||||||||||||||||||||||
Other long-term investments | Discounted cash flows and indicative valuations | Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity | N/A (c) | N/A (c) | ||||||||||||||||||||||||||||||||||||||||||||||
(a) | At September 30, 2014, corporate debt consisted of one bond. | |||||||||||||||||||||||||||||||||||||||||||||||||
(b) | At September 30, 2014, RMBS consisted of one bond. | |||||||||||||||||||||||||||||||||||||||||||||||||
(c) | Not applicable. | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 32,220 | $ | 32,220 | ||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 10,792 | 10,792 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 43,012 | $ | 43,012 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 71,469 | $ | 71,469 | ||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 11,935 | 11,935 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 83,404 | $ | 83,404 | ||||||||||||||||||||||||||||||||||||||||||
Schedule of net impairment charges recorded on assets measured at fair value on a non-recurring basis | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Net impairment charges recorded on assets measured at fair value on a non-recurring basis were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate owned | $ | 3,159 | $ | 5,668 | $ | 12,877 | $ | 19,270 | ||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | (717 | ) | (61 | ) | (1,773 | ) | (1,774 | ) | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 2,442 | $ | 5,607 | $ | 11,104 | $ | 17,496 | ||||||||||||||||||||||||||||||||||||||||||
Quantitative information about Level 3 inputs for assets measured on a nonrecurring basis | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at September 30, 2014 and December 31, 2013 is as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Range (Weighted Average) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate owned | Market approach | Third-party valuation | N/A* | N/A* | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | Market approach | Local market conditions Nature of investment Comparable property sales Operating performance | N/A* | N/A* | ||||||||||||||||||||||||||||||||||||||||||||||
* | Not applicable. |
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | Aug. 29, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 06, 2014 | 23-May-14 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 23, 2014 | Sep. 30, 2014 | Mar. 06, 2014 | Sep. 30, 2014 | Oct. 03, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Mar. 31, 2014 | Mar. 07, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Aug. 29, 2014 | Aug. 06, 2014 | Aug. 01, 2014 | Oct. 23, 2014 | |
employee | employee | Subsequent event | Springleaf Financial Holdings, LLC | Subsidiaries Wholly Owned | Corporate Joint Venture | Corporate Joint Venture | SAC | SAC | Residential Portfolio Segment | Residential Portfolio Segment | Residential Portfolio Segment | September Whole Loan | Nationstar Mortgage LLC | Nationstar Mortgage LLC | Nationstar Mortgage LLC | Nationstar Mortgage LLC | ||||||||||
position | position | Subsequent event | Other than securitizations | Other than securitizations | Other than securitizations | Subsequent event | ||||||||||||||||||||
As previously stated | ||||||||||||||||||||||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of common stock held by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.00% | 47.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Number Of Staff Positions Eliminated | ' | ' | ' | ' | 300 | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Number of Employees | ' | ' | ' | ' | 170 | 170 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity Number Of Employees Transferred | ' | ' | ' | ' | 130 | 130 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Costs | ' | ' | ' | ' | $4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loans sold | 768,600,000 | 4,000,000,000 | 444,400,000 | 814,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale price of mortgage loans sold | ' | 1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 795,100,000 | ' | ' | ' | ' |
Unpaid principal balance of mortgage loans in sale of MSRs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000,000 | ' |
Price agreed on for sale of interest in securitized assets | ' | ' | ' | ' | ' | ' | 38,800,000 | 263,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,800,000 | ' | ' |
Proceeds from sale of MSRs, percentage received | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | 40.00% |
Proceeds from sale of MSRs, amount remaining, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Proceeds from sale of MSRs, period to receive amount remaining, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '120 days |
Amount of loans sold | ' | ' | ' | ' | ' | 6,000,000,000 | ' | ' | ' | ' | ' | ' | ' | 737,200,000 | ' | ' | ' | ' | 89,900,000 | 79,000,000 | 93,300,000 | 768,600,000 | ' | ' | ' | ' |
Holdback provision related to mortgage loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' | ' | ' |
Amount of holdback provision subject to finalization of terms and conditions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' |
Common stock contributed by SFI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value of related party common stock held | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | 11,335,190,000 | 11,335,190,000 | ' | ' | 12,732,037,000 | 13,901,868,000 | ' | ' | ' | ' | ' | ' | ' | 2,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities | ' | ' | ' | ' | 8,777,395,000 | 8,777,395,000 | ' | ' | 11,403,896,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity including non-controlling interest | ' | ' | ' | ' | 2,557,795,000 | 2,557,795,000 | ' | ' | 1,328,141,000 | 1,312,603,000 | 1,242,582,000 | ' | ' | ' | ' | ' | ' | 691,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-controlling interests | ' | ' | ' | ' | $408,351,000 | $408,351,000 | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | $394,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Business_and_Summary_of_Signif3
Business and Summary of Significant Accounting Policies (Details 2) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 07, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Mortgage Loan Securitizations | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Correction of overstatement | As previously stated | As previously stated | |||||||
Other than securitizations | Other than securitizations | Real Estate Loans | Mortgage Loan Securitizations | Consolidated VIEs | Real Estate Loans | Mortgage Loan Securitizations | |||||||||||||||
Real Estate Loans | Other than securitizations | Real Estate Loans | |||||||||||||||||||
2009 securitization | 2009 securitization | ||||||||||||||||||||
Loan and lease receivable allowance | $162,440,000 | $366,496,000 | $332,195,000 | $279,223,000 | $241,628,000 | $182,701,000 | $37,634,000 | $258,897,000 | $236,032,000 | $208,655,000 | $180,458,000 | $113,861,000 | ' | ' | ' | $67,800,000 | $153,084,000 | ' | ($26,800,000) | ' | ' |
Carrying value of finance receivables sold | $6,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $89,900,000 | $79,000,000 | $5,100,000,000 | ' | ' | $724,900,000 | ' | $93,300,000 | $742,000,000 |
Business_and_Summary_of_Signif4
Business and Summary of Significant Accounting Policies (Details 3) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 07, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 06, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Real Estate Loans | Real Estate Loans | Mortgage Loan Securitizations | Consolidated VIEs | Subsidiaries Wholly Owned | Subsidiaries Wholly Owned | Subsidiaries Wholly Owned | ||
Other than securitizations | Other than securitizations | Real Estate Loans | Mortgage Loan Securitizations | Consolidated VIEs | Consolidated VIEs | |||
Real Estate Loans | Mortgage Loan Securitizations | Mortgage Loan Securitizations | ||||||
2009-1 Trust | Real Estate Loans | Real Estate Loans | ||||||
2010-1 Trust | 2009-1 Trust | |||||||
Significant 2014 Transactions | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loans sold | $6,000 | $89.90 | $79 | $5,100 | $724.90 | $737.20 | $444.40 | $724.90 |
Finance_Receivables_Details
Finance Receivables (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||||
Consolidated VIEs | Consolidated VIEs | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Spring Castle Portfolio | Spring Castle Portfolio | Spring Castle Portfolio | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Retail Sales Finance | Retail Sales Finance | Revolving Retail | Revolving Retail | Maximum | Maximum | Maximum | Securitizations | Securitizations | Real estate loans secured by first mortgages | Real estate loans secured by first mortgages | Real estate loans secured by second mortgages | Real estate loans secured by second mortgages | ||||||||
Consumer Loan Securitizations | Consumer Loan Securitizations | Titled personal property | Titled personal property | Consumer household goods or other items of personal property | Consumer household goods or other items of personal property | Mortgage Loan Securitizations | Mortgage Loan Securitizations | Mortgage Loan Securitizations | Personal loans | Real Estate Loans | Retail Sales Finance | Consolidated VIEs | Real Estate Loans | Real Estate Loans | |||||||||||||||||||||||
Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | |||||||||||||||||||||||||||||||||
Finance Receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Financing Receivables, Original Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '360 months | '60 months | ' | ' | ' | ' | ' | ' | |||||
Loans and Leases Receivable Secured | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,700,000,000 | ' | $1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Equity interest in SpringCastle Portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Financing Receivables Real Estate Loans as Percentage of Net Finance Receivables Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36.00% | ' | 64.00% | ' | |||||
Financing Receivables Secured by Real and Personal Property of Borrower as Percentage of Net Finance Receivables | ' | ' | ' | ' | ' | ' | ' | ' | 48.00% | ' | 37.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net finance receivables | 6,375,178,000 | 11,143,859,000 | ' | 5,200,000,000 | 3,579,588,000 | 3,159,932,000 | 1,841,139,000 | 1,572,070,000 | ' | ' | ' | ' | 2,083,145,000 | ' | 2,083,145,000 | [1] | 655,545,000 | 7,885,016,000 | ' | 5,595,150,000 | 56,900,000 | 98,911,000 | ' | ' | ' | ' | ' | ' | ' | ' | 234,100,000 | ' | 421,500,000 | ||||
Long-term debt | 7,858,037,000 | [2] | 10,640,728,000 | 3,052,972,000 | [1] | 5,160,227,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,052,972,000 | [1],[2] | 3,100,000,000 | ' | ' | ' | ' | |
Pledged Assets, Not Separately Reported, Finance Receivables | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Accrual of finance charges, past due period | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Finance receivables more than 90 days past due | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Loans receivable held for sale | 493,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Amount of commitments to lend additional funds on TDR finance receivables | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
[1] | *As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. | ||||||||||||||||||||||||||||||||||||
[2] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. |
Finance_Receivables_Details_2
Finance Receivables (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Finance Receivables | ' | ' | ||
Gross receivables | $6,964,992 | [1] | $11,584,706 | [1] |
Deferred Discounts, Finance Charges and Interest Included in Receivables | -705,407 | -571,554 | ||
Accrued finance charges | 73,825 | 91,069 | ||
Deferred origination costs | 41,768 | 39,638 | ||
Net finance receivables | 6,375,178 | 11,143,859 | ||
Personal Loans | ' | ' | ||
Finance Receivables | ' | ' | ||
Gross receivables | 4,181,830 | [1] | 3,632,462 | [1] |
Deferred Discounts, Finance Charges and Interest Included in Receivables | -696,225 | -559,902 | ||
Accrued finance charges | 52,294 | 48,008 | ||
Deferred origination costs | 41,689 | 39,364 | ||
Net finance receivables | 3,579,588 | 3,159,932 | ||
Spring Castle Portfolio | ' | ' | ||
Finance Receivables | ' | ' | ||
Gross receivables | 2,067,719 | [1] | ' | [1] |
Deferred Discounts, Finance Charges and Interest Included in Receivables | ' | ' | ||
Accrued finance charges | 15,426 | ' | ||
Deferred origination costs | ' | ' | ||
Net finance receivables | 2,083,145 | ' | ||
Real Estate Loans | ' | ' | ||
Finance Receivables | ' | ' | ||
Gross receivables | 653,101 | [1] | 7,843,787 | [1] |
Deferred Discounts, Finance Charges and Interest Included in Receivables | -3,260 | -1,208 | ||
Accrued finance charges | 5,625 | 42,163 | ||
Deferred origination costs | 79 | 274 | ||
Net finance receivables | 655,545 | 7,885,016 | ||
Retail Sales Finance | ' | ' | ||
Finance Receivables | ' | ' | ||
Gross receivables | 62,342 | [1] | 108,457 | [1] |
Deferred Discounts, Finance Charges and Interest Included in Receivables | -5,922 | -10,444 | ||
Accrued finance charges | 480 | 898 | ||
Deferred origination costs | ' | ' | ||
Net finance receivables | $56,900 | $98,911 | ||
[1] | Gross receivables are defined as follows:•finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value;•finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and•purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. |
Finance_Receivables_Details_3
Finance Receivables (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finance Receivables | ' | ' |
Unused credit lines | $389,813 | $37,334 |
Personal loans | ' | ' |
Finance Receivables | ' | ' |
Unused credit lines | 1,462 | 4,996 |
Spring Castle Portfolio | ' | ' |
Finance Receivables | ' | ' |
Unused credit lines | 357,914 | ' |
Real Estate Loans | ' | ' |
Finance Receivables | ' | ' |
Unused credit lines | $30,437 | $32,338 |
Finance_Receivables_Details_4
Finance Receivables (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Net finance receivables: | ' | ' |
60 to 89 Days Past Due | $79,232 | $126,365 |
90 to 119 Days Past Due | 54,653 | 91,631 |
120 to 149 Days Past Due | 42,951 | 74,301 |
150 to 179 Days Past Due | 35,554 | 60,398 |
Equal to Greater than 180 Days Past Due | 18,178 | 354,110 |
Total delinquent finance receivables | 230,568 | 706,805 |
Current | 6,006,202 | 10,211,660 |
30 to 59 Days Past Due | 138,408 | 225,394 |
Net finance receivables | 6,375,178 | 11,143,859 |
Personal loans | ' | ' |
Net finance receivables: | ' | ' |
60 to 89 Days Past Due | 31,932 | 28,297 |
90 to 119 Days Past Due | 25,427 | 22,648 |
120 to 149 Days Past Due | 20,938 | 18,662 |
150 to 179 Days Past Due | 16,592 | 14,618 |
Equal to Greater than 180 Days Past Due | 1,088 | 934 |
Total delinquent finance receivables | 95,977 | 85,159 |
Current | 3,430,849 | 3,027,460 |
30 to 59 Days Past Due | 52,762 | 47,313 |
Net finance receivables | 3,579,588 | 3,159,932 |
Spring Castle Portfolio | ' | ' |
Net finance receivables: | ' | ' |
60 to 89 Days Past Due | 33,379 | ' |
90 to 119 Days Past Due | 20,955 | ' |
120 to 149 Days Past Due | 15,826 | ' |
150 to 179 Days Past Due | 13,102 | ' |
Equal to Greater than 180 Days Past Due | 4,946 | ' |
Total delinquent finance receivables | 88,208 | ' |
Current | 1,932,945 | ' |
30 to 59 Days Past Due | 61,992 | ' |
Net finance receivables | 2,083,145 | ' |
Real Estate Loans | ' | ' |
Net finance receivables: | ' | ' |
60 to 89 Days Past Due | 13,151 | 96,778 |
90 to 119 Days Past Due | 7,842 | 67,966 |
120 to 149 Days Past Due | 5,629 | 54,882 |
150 to 179 Days Past Due | 5,557 | 45,040 |
Equal to Greater than 180 Days Past Due | 12,098 | 353,003 |
Total delinquent finance receivables | 44,277 | 617,669 |
Current | 588,886 | 7,092,107 |
30 to 59 Days Past Due | 22,382 | 175,240 |
Net finance receivables | 655,545 | 7,885,016 |
Retail Sales Finance | ' | ' |
Net finance receivables: | ' | ' |
60 to 89 Days Past Due | 770 | 1,290 |
90 to 119 Days Past Due | 429 | 1,017 |
120 to 149 Days Past Due | 558 | 757 |
150 to 179 Days Past Due | 303 | 740 |
Equal to Greater than 180 Days Past Due | 46 | 173 |
Total delinquent finance receivables | 2,106 | 3,977 |
Current | 53,522 | 92,093 |
30 to 59 Days Past Due | 1,272 | 2,841 |
Net finance receivables | $56,900 | $98,911 |
Finance_Receivables_Details_5
Finance Receivables (Details 5) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | $6,375,178 | $11,143,859 |
Personal loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 3,579,588 | 3,159,932 |
Spring Castle Portfolio | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 2,083,145 | ' |
Real Estate Loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 655,545 | 7,885,016 |
Retail Sales Finance | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 56,900 | 98,911 |
Performing | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 6,223,842 | 10,563,419 |
Performing | Personal loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 3,515,543 | 3,103,070 |
Performing | Spring Castle Portfolio | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 2,028,316 | ' |
Performing | Real Estate Loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 624,419 | 7,364,125 |
Performing | Retail Sales Finance | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 55,564 | 96,224 |
Nonperforming | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 151,336 | 580,440 |
Nonperforming | Personal loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 64,045 | 56,862 |
Nonperforming | Spring Castle Portfolio | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 54,829 | ' |
Nonperforming | Real Estate Loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | 31,126 | 520,891 |
Nonperforming | Retail Sales Finance | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables due | $1,336 | $2,687 |
Finance_Receivables_Details_6
Finance Receivables (Details 6) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
Finance Receivables | ' | ' | |
Carrying amount, net of allowance | $562,681,000 | [1] | $1,250,621,000 |
Outstanding balance | 982,517,000 | [2] | 1,782,271,000 |
Allowance for purchased credit impaired finance receivable losses | 4,513,000 | 57,261,000 | |
Spring Castle Portfolio | ' | ' | |
Finance Receivables | ' | ' | |
Carrying amount, net of allowance | 370,967,000 | [1] | ' |
Outstanding balance | 682,389,000 | [2] | ' |
Allowance for purchased credit impaired finance receivable losses | 0 | ' | |
Affiliates of Fortress or AIG | ' | ' | |
Finance Receivables | ' | ' | |
Carrying amount, net of allowance | 191,714,000 | [1] | 1,250,621,000 |
Outstanding balance | 300,128,000 | [2] | 1,782,271,000 |
Allowance for purchased credit impaired finance receivable losses | 4,513,000 | 57,261,000 | |
Carrying amount, net of allowance finance receivables held for sale | 165,500,000 | ' | |
Outstanding balance, Finance Receivables Held for Sale | $246,100,000 | ' | |
[1] | The carrying amount of purchased credit impaired finance receivables at September 30, 2014 includes $165.5 million of purchased credit impaired finance receivables held for sale. | ||
[2] | The outstanding balance of purchased credit impaired finance receivables at September 30, 2014 includes $246.1 million of purchased credit impaired finance receivables held for sale. |
Finance_Receivables_Details_7
Finance Receivables (Details 7) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Changes in accretable yield for purchased credit impaired finance receivables | ' | ' | ' | ' | ||||
Balance at beginning of period | $622,956,000 | $844,018,000 | $766,927,000 | $624,879,000 | ||||
Accretable yield for SpringCastle Portfolio contributed to SFC | 259,944,000 | [1] | ' | 259,944,000 | [1] | ' | ||
Accretion | -30,944,000 | [2] | -32,041,000 | -86,158,000 | [2] | -97,036,000 | ||
Transfers due to finance receivables sold | -559,250,000 | ' | -636,888,000 | ' | ||||
Reclassifications from nonaccretable difference | ' | 2,740,000 | [3] | ' | 303,328,000 | [3] | ||
Disposals | -6,834,000 | [4] | -8,337,000 | [4] | -17,953,000 | [4] | -24,791,000 | [4] |
Balance at end of period | 285,872,000 | 806,380,000 | 285,872,000 | 806,380,000 | ||||
Spring Castle Portfolio | ' | ' | ' | ' | ||||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ||||
Ownership percentage in joint venture | 47.00% | ' | 47.00% | ' | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | ' | ' | ' | ||||
Accretable yield for SpringCastle Portfolio contributed to SFC | 259,944,000 | [1] | ' | 259,944,000 | [1] | ' | ||
Accretion | -10,327,000 | [2] | ' | -10,327,000 | [2] | ' | ||
Transfers due to finance receivables sold | 0 | ' | ' | ' | ||||
Disposals | -3,196,000 | [4] | ' | -3,196,000 | [4] | ' | ||
Balance at end of period | 246,421,000 | ' | 246,421,000 | ' | ||||
Affiliates of Fortress or AIG | ' | ' | ' | ' | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ' | ' | ' | ' | ||||
Balance at beginning of period | 622,956,000 | 844,018,000 | 766,927,000 | 624,879,000 | ||||
Accretable yield for SpringCastle Portfolio contributed to SFC | ' | [1] | ' | ' | [1] | ' | ||
Accretion | -20,617,000 | [2] | -32,041,000 | -75,831,000 | [2] | -97,036,000 | ||
Transfers due to finance receivables sold | -559,250,000 | ' | -636,888,000 | ' | ||||
Reclassifications from nonaccretable difference | ' | 2,740,000 | [3] | ' | 303,328,000 | [3] | ||
Disposals | -3,638,000 | [4] | -8,337,000 | [4] | -14,757,000 | [4] | -24,791,000 | [4] |
Balance at end of period | 39,451,000 | 806,380,000 | 39,451,000 | 806,380,000 | ||||
FA Loans | ' | ' | ' | ' | ||||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion, Including Held for Sale | $11,100,000 | ' | $11,300,000 | ' | ||||
[1] | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | |||||||
[2] | Accretion on our purchased credit impaired finance receivables for the three and nine months ended September 30, 2014 includes $11.1 million and $11.3 million, respectively, of accretion on purchased credit impaired finance receivables held for sale, which is reported as interest income on finance receivables held for sale originated as held for investment. | |||||||
[3] | Reclassifications from (to) nonaccretable difference represent the increases (decreases) in accretion resulting from higher (lower) estimated undiscounted cash flows. | |||||||
[4] | Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged-off during the period. |
Finance_Receivables_Details_8
Finance Receivables (Details 8) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
TDR FINANCE RECEIVABLES | ' | ' | ||
TDR net finance receivables | $103,890 | $1,371,321 | ||
Individually evaluated for impairment (TDR finance receivables) | 31,205 | 177,011 | ||
Residential Portfolio Segment | ' | ' | ||
TDR FINANCE RECEIVABLES | ' | ' | ||
TDR gross finance receivables | 334,141 | [1],[2] | 1,366,346 | [1] |
TDR net finance receivables | 335,512 | [3] | 1,371,321 | |
Individually evaluated for impairment (TDR finance receivables) | 31,205 | 177,011 | ||
Real Estate Loans Held for Sale | Residential Portfolio Segment | ' | ' | ||
TDR FINANCE RECEIVABLES | ' | ' | ||
TDR gross finance receivables | 230,700 | [1] | ' | |
TDR net finance receivables | $231,600 | ' | ||
[1] | As defined earlier in this Note. | |||
[2] | TDR gross finance receivables at September 30, 2014 include $230.7 million of TDR finance receivables held for sale. | |||
[3] | TDR net finance receivables at September 30, 2014 includes $231.6 million of TDR finance receivables held for sale. |
Finance_Receivables_Details_9
Finance Receivables (Details 9) (Real Estate Loans, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
account | account | account | account | |||||
Real Estate Loans Held for Sale | ' | ' | ' | ' | ||||
TDR average net receivables and finance charges recognized on TDR finance receivables | ' | ' | ' | ' | ||||
TDR average net receivables | $412,982 | [1] | ' | $412,982 | [1] | ' | ||
TDR finance charges recognized | 3,100 | ' | 3,100 | ' | ||||
New volume of the TDR finance receivables | ' | ' | ' | ' | ||||
Number of TDR accounts | 89 | ' | 89 | ' | ||||
Pre-modification TDR net finance receivables | 6,000 | ' | 6,000 | ' | ||||
Post-modification TDR net finance receivables | 6,600 | ' | 6,600 | ' | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 30 | ' | 30 | ' | ||||
TDR net finance receivables, with subsequent default | 1,800 | [2] | ' | 1,800 | [2] | ' | ||
Real Estate Loans Held for Investment | ' | ' | ' | ' | ||||
TDR average net receivables and finance charges recognized on TDR finance receivables | ' | ' | ' | ' | ||||
TDR average net receivables | 797,418 | [1] | 1,200,178 | [1] | 1,187,138 | [1] | 1,052,653 | [1] |
TDR finance charges recognized | 10,005 | [3] | 16,841 | [3] | 44,505 | [3] | 45,791 | [3] |
New volume of the TDR finance receivables | ' | ' | ' | ' | ||||
Number of TDR accounts | 403 | [4] | 1,461 | [4] | 2,290 | [4] | 5,762 | [4] |
Pre-modification TDR net finance receivables | 28,401 | [5] | 131,969 | [5] | 209,360 | [5] | 450,276 | [5] |
Post-modification TDR net finance receivables | 29,889 | [5] | 139,830 | [5] | 199,353 | [5] | 472,724 | [5] |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 54 | [6] | 369 | [6] | 488 | [6] | 796 | [6] |
TDR net finance receivables, with subsequent default | $2,788 | [2],[6] | $25,758 | [2],[6] | $31,465 | [2],[6] | $59,719 | [2],[6] |
[1] | TDR average net receivables for the three and nine months ended September 30, 2014 include $413.0 million of TDR average net receivables held for sale, which reflect a two-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. | |||||||
[2] | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. | |||||||
[3] | TDR finance charges recognized for the three and nine months ended September 30, 2014 include $3.1 million of interest income on TDR finance receivables held for sale. | |||||||
[4] | Number of new TDR accounts for the three and nine months ended September 30, 2014 includes 89 new TDR accounts that were held for sale. | |||||||
[5] | TDR net finance receivables for the three and nine months ended September 30, 2014 include $6.0 million of pre-modification and $6.6 million of post-modification TDR net finance receivables held for sale. | |||||||
[6] | Number and amount of TDR net finance receivables for the three and nine months ended September 30, 2014 that defaulted during the previous 12 month period include 30 TDR accounts that were held for sale totaling $1.8 million. |
Allowance_for_Finance_Receivab2
Allowance for Finance Receivable Losses (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Aug. 01, 2014 | Jun. 01, 2014 | Mar. 01, 2014 | Jun. 13, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||||||||||||||||||||||
Consolidated VIEs | Consolidated VIEs | As previously stated | As previously stated | Adjustments | Adjustments | Adjustments | FA Loans | FA Loans | FA Loans | FA Loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Spring Castle Portfolio | Spring Castle Portfolio | Spring Castle Portfolio | Spring Castle Portfolio | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Retail Sales Finance | Retail Sales Finance | Retail Sales Finance | Retail Sales Finance | |||||||||||||||||||||||||||||||||
Consolidated VIEs | As previously stated | Change in charge-off policy | Non-credit impaired finance receivables | Non-credit impaired finance receivables | Non-credit impaired finance receivables | Non-credit impaired finance receivables | Purchased credit impaired finance receivables | Purchased credit impaired finance receivables | Purchased credit impaired finance receivables | Purchased credit impaired finance receivables | TDR finance receivables | TDR finance receivables | TDR finance receivables | TDR finance receivables | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Balance at beginning of period | ' | ' | ' | ' | $366,496,000 | $241,628,000 | $332,195,000 | $182,701,000 | $67,800,000 | $153,084,000 | ' | ' | ' | ' | ($26,800,000) | ' | ' | ' | ' | $106,249,000 | $60,250,000 | $94,323,000 | $66,580,000 | ' | ' | ' | ' | ' | ' | $258,897,000 | $180,458,000 | $236,032,000 | $113,861,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,350,000 | $920,000 | $1,840,000 | $2,260,000 | ||||||||||||||||||||||||
Provision for finance receivable losses | ' | ' | ' | ' | 92,114,000 | [1] | 101,390,000 | [1] | 273,372,000 | [1] | 260,005,000 | [1] | ' | ' | 97,414,000 | 262,142,000 | -413,000 | -1,277,000 | ' | ' | ' | ' | ' | 57,260,000 | [1] | 39,685,000 | [1] | 149,904,000 | [1] | 64,282,000 | [1] | ' | ' | 18,073,000 | [1] | ' | [1] | 18,073,000 | [1] | ' | [1] | 16,112,000 | [1] | 59,862,000 | [1] | 102,732,000 | [1] | 199,957,000 | [1] | 6,376,000 | 17,806,000 | 32,189,000 | 62,781,000 | 3,011,000 | 21,210,000 | 28,594,000 | 60,511,000 | 6,725,000 | 20,846,000 | 41,949,000 | 76,665,000 | 669,000 | [1] | 1,843,000 | [1] | 2,663,000 | [1] | -4,234,000 | [1] | ||||
Charge-offs | ' | ' | ' | ' | -82,062,000 | -67,548,000 | -230,291,000 | -234,250,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -47,272,000 | -32,527,000 | -138,492,000 | -106,161,000 | [2] | ' | -13,300,000 | -20,300,000 | ' | -20,300,000 | ' | [2] | -13,291,000 | -32,989,000 | -67,189,000 | -120,751,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,199,000 | -2,032,000 | -4,310,000 | -7,338,000 | [2] | |||||||||||||||||||
Recoveries | ' | ' | ' | ' | 10,229,000 | 3,753,000 | 26,180,000 | [3] | 70,767,000 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,056,000 | 2,135,000 | 17,558,000 | [3] | 44,842,000 | [4] | ' | ' | 1,836,000 | ' | 1,836,000 | [3] | ' | [4] | 963,000 | 1,324,000 | 5,785,000 | [3] | 15,588,000 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 374,000 | 294,000 | 1,001,000 | [3] | 10,337,000 | [4] | ||||||||||||||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale | ' | ' | ' | ' | -225,047,000 | [5] | ' | -239,726,000 | [5] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | [5] | ' | ' | [5] | ' | ' | ' | ' | [5] | ' | ' | [5] | ' | -225,047,000 | [5] | ' | -239,726,000 | [5] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | [5] | ' | ' | [5] | ' | ||||||||||||||
Allowance for SpringCastle Portfolio contributed to SFC | ' | ' | ' | ' | 710,000 | [6] | ' | 710,000 | [6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | [6] | ' | ' | [6] | ' | ' | ' | 710,000 | [6] | ' | 710,000 | [6] | ' | ' | [6] | ' | ' | [6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | [6] | ' | ' | [6] | ' | ||||||||||||||
Balance at end of period | ' | ' | ' | ' | 162,440,000 | 279,223,000 | 162,440,000 | 279,223,000 | 67,800,000 | 153,084,000 | ' | ' | ' | ' | -26,800,000 | ' | ' | ' | ' | 123,293,000 | 69,543,000 | 123,293,000 | 69,543,000 | ' | ' | 319,000 | ' | 319,000 | ' | 37,634,000 | 208,655,000 | 37,634,000 | 208,655,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,194,000 | 1,025,000 | 1,194,000 | 1,025,000 | ||||||||||||||||||||||||
Transfers to finance receivables held for sale which have a specific allowance | 5,300,000,000 | 451,200,000 | 825,200,000 | ' | 5,300,000,000 | ' | 6,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Ownership percentage in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.00% | ' | 47.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,600,000 | ' | ' | ' | 23,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | 9,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,900,000 | ||||||||||||||||||||||||
Adjustment for the subsequent buyback of previously charged-off finance receivables sold | ' | ' | ' | 1,600,000 | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Accrual of finance charges, past due period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Maximum payments in past 6 months, as percentage of original loan amount, for charge-off as uncollectible | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Carrying amount charged-off for purchased credit impaired loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Purchased credit impaired finance receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,019,000 | [7] | $9,873,000 | [7] | $14,951,000 | [7] | $31,501,000 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,869,000 | ' | $4,869,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
[1] | Components of provision for finance receivable losses on our real estate loans were as follows:(dollars in thousands) Three Months Ended September 30, 2014 Three Months Ended September 30, 2013 Nine Months Ended September 30, 2014 Nine Months Ended September 30, 2013 Revised RevisedReal estate loans Provision for finance receivable losses Non-credit impaired finance receivables $6,376 $17,806 $32,189 $62,781Purchased credit impaired finance receivables 3,011 21,210 28,594 60,511TDR finance receivables 6,725 20,846 41,949 76,665Total $16,112 $59,862 $102,732 $199,957 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13.3 million of additional charge-offs in March 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Recoveries during the nine months ended September 30, 2014 included $2.2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014, net of a $0.2 million reserve for subsequent buybacks. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Recoveries during the nine months ended September 30, 2013 included $39.6 million ($23.8 million of personal loan recoveries, $9.9 million of real estate loan recoveries, and $5.9 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $1.6 million adjustment for the subsequent buyback of certain finance receivables. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | During the three and nine months ended September 30, 2014, we reduced the carrying value of certain real estate loans to $5.3 billion and $6.6 billion, respectively, as a result of the transfers of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. |
Allowance_for_Finance_Receivab3
Allowance for Finance Receivable Losses (Details 2) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||||||
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | $126,722 | ' | $97,923 | ' | ' | ' | |
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 4,513 | ' | 57,261 | ' | ' | ' | |
Individually evaluated for impairment (TDR finance receivables) | 31,205 | ' | 177,011 | ' | ' | ' | |
Total | 162,440 | 366,496 | 332,195 | 279,223 | 241,628 | 182,701 | |
Finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | 5,869,635 | ' | 8,464,656 | ' | ' | ' | |
Purchased credit impaired finance receivables | 401,653 | ' | 1,307,882 | ' | ' | ' | |
TDR finance receivables | 103,890 | ' | 1,371,321 | ' | ' | ' | |
Net finance receivables | 6,375,178 | ' | 11,143,859 | ' | ' | ' | |
Personal loans | ' | ' | ' | ' | ' | ' | |
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | 123,293 | ' | 94,323 | ' | ' | ' | |
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | ' | ' | ' | ' | ' | ' | |
Individually evaluated for impairment (TDR finance receivables) | ' | ' | ' | ' | ' | ' | |
Total | 123,293 | 106,249 | 94,323 | 69,543 | 60,250 | 66,580 | |
Finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | 3,579,588 | ' | 3,159,932 | ' | ' | ' | |
Purchased credit impaired finance receivables | ' | ' | ' | ' | ' | ' | |
TDR finance receivables | ' | ' | ' | ' | ' | ' | |
Net finance receivables | 3,579,588 | ' | 3,159,932 | ' | ' | ' | |
Spring Castle Portfolio | ' | ' | ' | ' | ' | ' | |
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | 319 | ' | ' | ' | ' | ' | |
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | ' | ' | ' | ' | ' | ' | |
Individually evaluated for impairment (TDR finance receivables) | ' | ' | ' | ' | ' | ' | |
Total | 319 | ' | ' | ' | ' | ' | |
Finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | 1,712,178 | ' | ' | ' | ' | ' | |
Purchased credit impaired finance receivables | 370,967 | ' | ' | ' | ' | ' | |
TDR finance receivables | ' | ' | ' | ' | ' | ' | |
Net finance receivables | 2,083,145 | ' | ' | ' | ' | ' | |
Real Estate Loans | ' | ' | ' | ' | ' | ' | |
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | 1,916 | ' | 1,760 | ' | ' | ' | |
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 4,513 | ' | 57,261 | ' | ' | ' | |
Individually evaluated for impairment (TDR finance receivables) | 31,205 | ' | 177,011 | ' | ' | ' | |
Total | 37,634 | 258,897 | 236,032 | 208,655 | 180,458 | 113,861 | |
Finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | 520,969 | ' | 5,205,813 | ' | ' | ' | |
Purchased credit impaired finance receivables | 30,686 | ' | 1,307,882 | ' | ' | ' | |
TDR finance receivables | 103,890 | ' | 1,371,321 | ' | ' | ' | |
Net finance receivables | 655,545 | ' | 7,885,016 | ' | ' | ' | |
Retail Sales Finance | ' | ' | ' | ' | ' | ' | |
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | 1,194 | ' | 1,840 | ' | ' | ' | |
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | ' | ' | ' | ' | ' | ' | |
Individually evaluated for impairment (TDR finance receivables) | ' | ' | ' | ' | ' | ' | |
Total | 1,194 | 1,350 | 1,840 | 1,025 | 920 | 2,260 | |
Finance receivables: | ' | ' | ' | ' | ' | ' | |
Collectively evaluated for impairment | 56,900 | ' | 98,911 | ' | ' | ' | |
Purchased credit impaired finance receivables | ' | ' | ' | ' | ' | ' | |
TDR finance receivables | ' | ' | ' | ' | ' | ' | |
Net finance receivables | 56,900 | ' | 98,911 | ' | ' | ' | |
Real Estate Loans | ' | ' | ' | ' | ' | ' | |
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' | |
Individually evaluated for impairment (TDR finance receivables) | 31,205 | ' | 177,011 | ' | ' | ' | |
Finance receivables: | ' | ' | ' | ' | ' | ' | |
TDR finance receivables | 335,512 | [1] | ' | 1,371,321 | ' | ' | ' |
Consolidated VIEs | ' | ' | ' | ' | ' | ' | |
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' | |
Total | 67,800 | ' | 153,084 | ' | ' | ' | |
Finance receivables: | ' | ' | ' | ' | ' | ' | |
Net finance receivables | ' | ' | $5,200,000 | ' | ' | ' | |
[1] | TDR net finance receivables at September 30, 2014 includes $231.6 million of TDR finance receivables held for sale. |
Finance_Receivables_Held_for_S2
Finance Receivables Held for Sale (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2014 | Aug. 29, 2014 | Aug. 01, 2014 | Jun. 30, 2014 | Jun. 01, 2014 | Mar. 31, 2014 | Mar. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||
loan | loan | loan | loan | ||||||||||
item | item | ||||||||||||
Receivables Held-for-sale [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loans receivable held for sale | ' | ' | ' | ' | ' | ' | ' | $493,200,000 | ' | $493,200,000 | ' | ||
Finance receivables held for sale originated as held for investment | ' | ' | ' | ' | ' | ' | ' | 46,502,000 | ' | 53,744,000 | ' | ||
Carrying value of finance receivables transferred from held for investment to held for sale | ' | ' | 5,300,000,000 | ' | 451,200,000 | ' | 825,200,000 | 5,300,000,000 | ' | 6,600,000,000 | ' | ||
Amount of loans sold | 768,600,000 | 4,000,000,000 | ' | 444,400,000 | ' | 814,800,000 | ' | ' | ' | ' | ' | ||
Net gain on sales of real estate loans and related trust assets | 11,700,000 | 604,900,000 | ' | 34,800,000 | ' | 55,200,000 | ' | 616,534,000 | [1] | ' | 706,520,000 | [2] | ' |
Proceeds from sale of MSRs | ' | 38,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of loans reaching defined delinquency limits repurchased under loan sale agreement | ' | ' | ' | ' | ' | ' | ' | 4 | 2 | 9 | 19 | ||
Amount of loans reaching defined delinquency limits repurchased under loan sale agreement | ' | ' | ' | ' | ' | ' | ' | 600,000 | 300,000 | 1,500,000 | 2,800,000 | ||
Number of material unresolved recourse requests | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | ||
Real estate loans sold, reserve for sales recourse obligations | ' | ' | ' | ' | ' | ' | ' | 9,900,000 | ' | ' | ' | ||
Activity in reserve for sales recourse obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Balance at beginning of period | 13,197,000 | ' | ' | 4,724,000 | ' | ' | ' | 4,724,000 | 4,766,000 | 4,702,000 | 4,863,000 | ||
Provision for recourse obligations | ' | ' | ' | ' | ' | ' | ' | 8,543,000 | ' | 8,706,000 | 322,000 | ||
Recourse losses | ' | ' | ' | ' | ' | ' | ' | -70,000 | -42,000 | -211,000 | -461,000 | ||
Balance at end of period | ' | ' | ' | ' | ' | ' | ' | 13,197,000 | 4,724,000 | 13,197,000 | 4,724,000 | ||
Amount of loans sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,000,000,000 | ' | ||
[1] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the date the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sale of these loans. | ||||||||||||
[2] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | $551,014,000 | $496,658,000 | ||
Unrealized Gains | 17,687,000 | 10,412,000 | ||
Unrealized Losses | -1,893,000 | -3,706,000 | ||
Fair Value | 566,808,000 | 503,364,000 | ||
Interest in a limited partnership | 500,000 | 600,000 | ||
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss | 0 | 0 | ||
Bonds: | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 541,695,000 | 486,570,000 | ||
Unrealized Gains | 17,472,000 | 10,412,000 | ||
Unrealized Losses | -1,682,000 | -3,542,000 | ||
Fair Value | 557,485,000 | 493,440,000 | ||
U.S. government and government sponsored entities | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 55,427,000 | 58,748,000 | ||
Unrealized Gains | 930,000 | 565,000 | ||
Unrealized Losses | -159,000 | -680,000 | ||
Fair Value | 56,198,000 | 58,633,000 | ||
Obligations of states, municipalities, and political subdivisions | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 115,916,000 | 101,118,000 | ||
Unrealized Gains | 2,618,000 | 1,703,000 | ||
Unrealized Losses | -82,000 | -76,000 | ||
Fair Value | 118,452,000 | 102,745,000 | ||
Corporate debt | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 252,498,000 | 233,977,000 | ||
Unrealized Gains | 11,452,000 | 6,126,000 | ||
Unrealized Losses | -1,200,000 | -2,187,000 | ||
Fair Value | 262,750,000 | 237,916,000 | ||
RMBS | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 77,098,000 | 81,259,000 | ||
Unrealized Gains | 2,362,000 | 1,923,000 | ||
Unrealized Losses | -42,000 | -559,000 | ||
Fair Value | 79,418,000 | 82,623,000 | ||
CMBS | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 22,167,000 | 7,487,000 | ||
Unrealized Gains | 80,000 | 76,000 | ||
Unrealized Losses | -149,000 | -16,000 | ||
Fair Value | 22,098,000 | 7,547,000 | ||
CDO/ABS | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 18,589,000 | 3,981,000 | ||
Unrealized Gains | 30,000 | 19,000 | ||
Unrealized Losses | -50,000 | -24,000 | ||
Fair Value | 18,569,000 | 3,976,000 | ||
Preferred stocks | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 7,163,000 | 7,844,000 | ||
Unrealized Gains | 84,000 | ' | ||
Unrealized Losses | -204,000 | -39,000 | ||
Fair Value | 7,043,000 | 7,805,000 | ||
Other long-term investments | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 1,306,000 | [1] | 1,394,000 | [1] |
Unrealized Gains | 131,000 | [1] | ' | [1] |
Unrealized Losses | -7,000 | [1] | -125,000 | [1] |
Fair Value | 1,430,000 | [1] | 1,269,000 | [1] |
Common stocks | ' | ' | ||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | ' | ' | ||
Cost/Amortized Cost | 850,000 | 850,000 | ||
Unrealized Gains | ' | ' | ||
Unrealized Losses | ' | ' | ||
Fair Value | $850,000 | $850,000 | ||
[1] | Excludes interest in a limited partnership that we account for using the equity method ($0.5 million at September 30, 2014 and $0.6 million at December 31, 2013). |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | $113,556 | $157,356 |
12 Months or Longer | ' | 32,616 | 11,772 |
Total | ' | 146,172 | 169,128 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | -887 | -3,054 |
12 Months or Longer | ' | -1,006 | -652 |
Total | ' | -1,893 | -3,706 |
Bonds: | ' | ' | ' |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | 107,537 | 148,282 |
12 Months or Longer | ' | 32,512 | 11,772 |
Total | ' | 140,049 | 160,054 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | -683 | -2,890 |
12 Months or Longer | ' | -999 | -652 |
Total | ' | -1,682 | -3,542 |
U.S. government and government sponsored entities | ' | ' | ' |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | 17,827 | 44,314 |
12 Months or Longer | ' | 13,468 | ' |
Total | ' | 31,295 | 44,314 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | -53 | -680 |
12 Months or Longer | ' | -106 | ' |
Total | ' | -159 | -680 |
Obligations of states, municipalities, and political subdivisions | ' | ' | ' |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | 17,917 | 14,220 |
12 Months or Longer | ' | 1,053 | ' |
Total | ' | 18,970 | 14,220 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | -54 | -76 |
12 Months or Longer | ' | -28 | ' |
Total | ' | -82 | -76 |
Corporate debt | ' | ' | ' |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | 34,004 | 65,809 |
12 Months or Longer | ' | 15,356 | 11,772 |
Total | ' | 49,360 | 77,581 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | -358 | -1,535 |
12 Months or Longer | ' | -842 | -652 |
Total | ' | -1,200 | -2,187 |
RMBS | ' | ' | ' |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | 12,310 | 18,288 |
12 Months or Longer | ' | 2,635 | ' |
Total | ' | 14,945 | 18,288 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | -19 | -559 |
12 Months or Longer | ' | -23 | ' |
Total | ' | -42 | -559 |
Other-than-temporary impairment credit loss | ' | ' | ' |
Net impairment losses recognized in net income (loss) | 26 | ' | ' |
CMBS | ' | ' | ' |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | 18,605 | 2,993 |
12 Months or Longer | ' | ' | ' |
Total | ' | 18,605 | 2,993 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | -149 | -16 |
12 Months or Longer | ' | ' | ' |
Total | ' | -149 | -16 |
CDO/ABS | ' | ' | ' |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | 6,874 | 2,658 |
12 Months or Longer | ' | ' | ' |
Total | ' | 6,874 | 2,658 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | -50 | -24 |
12 Months or Longer | ' | ' | ' |
Total | ' | -50 | -24 |
Preferred stocks | ' | ' | ' |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | 6,019 | 7,805 |
12 Months or Longer | ' | ' | ' |
Total | ' | 6,019 | 7,805 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | -204 | -39 |
12 Months or Longer | ' | ' | ' |
Total | ' | -204 | -39 |
Other long-term investments | ' | ' | ' |
Fair Value | ' | ' | ' |
Less Than 12 Months | ' | ' | 1,269 |
12 Months or Longer | ' | 104 | ' |
Total | ' | 104 | 1,269 |
Unrealized Losses | ' | ' | ' |
Less Than 12 Months | ' | ' | -125 |
12 Months or Longer | ' | -7 | ' |
Total | ' | ($7) | ($125) |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities | ' | ' | ' | ' |
Balance at beginning of period | $1,318 | $1,523 | $1,523 | $1,650 |
Impairment previously recognized | ' | ' | ' | 26 |
Realized due to dispositions with no prior intention to sell | ' | ' | -205 | -153 |
Balance at end of period | 1,318 | 1,523 | 1,318 | 1,523 |
Available-for-sale securities sold or redeemed | ' | ' | ' | ' |
Fair value | 104,960 | 36,170 | 203,384 | 135,202 |
Realized gains | 4,614 | 166 | 7,205 | 2,278 |
Realized losses | -67 | -219 | -309 | -390 |
Net realized gains | $4,547 | ($53) | $6,896 | $1,888 |
Investment_Securities_Details_2
Investment Securities (Details 4) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Fair Value | ' |
Due in 1 year or less | $28,104 |
Due after 1 year through 5 years | 178,708 |
Due after 5 years through 10 years | 94,638 |
Due after 10 years | 135,950 |
Mortgage-backed securities | 120,085 |
Fair Value | 557,485 |
Amortized Cost | ' |
Due in 1 year or less | 27,511 |
Due after 1 year through 5 years | 174,715 |
Due after 5 years through 10 years | 93,428 |
Due after 10 years | 128,187 |
Mortgage-backed securities | 117,854 |
Total | $541,695 |
Investment_Securities_Details_3
Investment Securities (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Trading securities | ' | ' | ' | ' | ' |
Trading securities | $1,129,578 | ' | $1,129,578 | ' | $51,654 |
Net unrealized and realized gains (losses) on trading securities | ' | ' | ' | ' | ' |
Net unrealized gains (losses) on trading securities held at period end | -2,038 | -224 | -1,120 | -433 | ' |
Net realized gains on trading securities sold or redeemed | 249 | 63 | 279 | 174 | ' |
Total | -1,789 | -161 | -841 | -259 | ' |
U.S. government and government sponsored entities | ' | ' | ' | ' | ' |
Trading securities | ' | ' | ' | ' | ' |
Trading securities | 134,381 | ' | 134,381 | ' | ' |
Obligations of states, municipalities, and political subdivisions | ' | ' | ' | ' | ' |
Trading securities | ' | ' | ' | ' | ' |
Trading securities | 87,340 | ' | 87,340 | ' | ' |
Corporate debt | ' | ' | ' | ' | ' |
Trading securities | ' | ' | ' | ' | ' |
Trading securities | 443,884 | ' | 443,884 | ' | 1,837 |
RMBS | ' | ' | ' | ' | ' |
Trading securities | ' | ' | ' | ' | ' |
Trading securities | 64,527 | ' | 64,527 | ' | 10,671 |
CMBS | ' | ' | ' | ' | ' |
Trading securities | ' | ' | ' | ' | ' |
Trading securities | 106,115 | ' | 106,115 | ' | 29,897 |
CDO/ABS | ' | ' | ' | ' | ' |
Trading securities | ' | ' | ' | ' | ' |
Trading securities | $293,331 | ' | $293,331 | ' | $9,249 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2014 | Jul. 10, 2014 | Jan. 10, 2014 | Dec. 31, 2013 | Jul. 10, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jan. 11, 2013 | Aug. 05, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Feb. 28, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Jul. 26, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 07, 2014 | Jul. 26, 2013 | Sep. 30, 2014 | |
Springleaf Finance Management Corporation | CSI | SAC | SFI | SFI | SFI | SFI | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | November Whole Loan | ||||
Springleaf Finance Corporation | Springleaf Finance Corporation | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | Spring leaf General Services Corporation [Member] | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | Springleaf Finance Management Corporation | Intercompany Demand Note Due 31 December 2022 [Member] | Intercompany Demand Note Due 31 December 2022 [Member] | Intercompany Demand Note Due 31 December 2022 [Member] | Intercompany Demand Note Due 31 December 2022 [Member] | Intercompany Demand Note Due 31 December 2022 [Member] | ||||||||||||
Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | Springleaf Finance Management Corporation | AIGFP | AIGFP | SFSSC | SFSSC | SFSSC | SFI | SFI | SFI | SFI | SFI | |||||||||||||||||||||
Services Agreement | Services Agreement | Services Agreement | Services Agreement | Services Agreement | License Agreement | License Agreement | License Agreement | License Agreement | Building Lease | Building Lease | Building Lease | Building Lease | SAC | SAC | SAC | SAC | SAC | ||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loans sold | ' | $6,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $251,000,000 |
Note receivable from SFI | ' | 167,989,000 | 167,989,000 | ' | ' | ' | ' | ' | 168,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 168,000,000 | ' | 168,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest receivable on note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | 400,000 | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest revenue on note receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | 4,400,000 | 4,100,000 | 14,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables from parent and affiliates | ' | 20,100,000 | 39,400,000 | 1,000,000 | 16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount related party may borrow | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' |
Interest rate of intercompany demand note (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' |
Face amount of each issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 1,100,000 | 2,500,000 | ' | ' |
Interest rates (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' |
Interest Expense, Related Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | 15,000 | ' | ' | ' |
Payable due to SFI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,800,000 | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' |
Amount paid by related party towards settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of cash collateral repaid to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | 2,700,000 | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock contributed by SFI | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value of related party common stock held | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Par or Stated Value Per Share | ' | $0.50 | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital contributions received to satisfy interest payments | ' | ' | ' | ' | ' | ' | 10,500,000 | 10,500,000 | ' | 10,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of cash collateral posted by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of cash collateral returned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of allocated cost of service | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service fee expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,400,000 | 34,800,000 | 159,800,000 | 101,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,100,000 | ' | 14,100,000 | ' | 9,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin on the systems and software (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of actual cost incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | 1,600,000 | 4,000,000 | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of buildings leased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual rental fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent charged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $900,000 | $900,000 | $2,800,000 | $2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transactions_with_Affiliates_o2
Transactions with Affiliates of Fortress or AIG (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||
Aug. 29, 2014 | Aug. 06, 2014 | 23-May-14 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 06, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Oct. 23, 2014 | |
Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Affiliated Entity | Nationstar Mortgage LLC | Nationstar Mortgage LLC | Nationstar Mortgage LLC | Nationstar Mortgage LLC | Spring Castle Acquisition | Subsequent event | ||||
Logan Circle Partners L.P. | Logan Circle Partners L.P. | Logan Circle Partners L.P. | Logan Circle Partners L.P. | Merit | Merit | 2009-1 Trust | Owners | Owners | Owners | Owners | NRZ Consumer LLC | |||||
Subsidiaries of American International Group Inc | Subsidiaries of American International Group Inc | MLPFS | ||||||||||||||
Transactions with Affiliates of Fortress or AIG | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subservicing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,221,000 | $2,132,000 | $4,922,000 | $6,556,000 | ' | ' |
Refinancing concessions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 265,000 | ' | ' |
Costs and fees incurred for the investment management services | ' | ' | ' | 300,000 | 200,000 | 800,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserves for reinsurance agreements | ' | ' | ' | ' | ' | ' | ' | 43,900,000 | 45,600,000 | ' | ' | ' | ' | ' | ' | ' |
Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' |
Price agreed on for sale of interest in securitized assets | ' | $38,800,000 | $263,700,000 | ' | ' | ' | ' | ' | ' | $737,200,000 | ' | ' | ' | ' | ' | ' |
Proceeds from sale of MSRs, percentage received | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% |
Percentage of interest concurrently agreed to be sold by counterparty to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 31, 2007 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 30, 2013 | Dec. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 30, 2013 | Sep. 30, 2014 | Dec. 30, 2013 | |||||
Retail Notes | Medium Term Notes | Securitizations | Junior Subordinated Debt | Junior Subordinated Debt | Senior debt | Senior Notes 1999 Indenture | Secured Term Loan | Guaranty Agreements | Guaranty Agreements | Guaranty Agreements | Guaranty Agreements | Guaranty Agreements | Guaranty Agreements | Guaranty Agreements | Guaranty Agreements | Guaranty Agreements | Guaranty Agreements | ||||||||
Springleaf Finance Corporation | SFFC | Junior Subordinated Debt | Junior Subordinated Debt | Junior Subordinated Debt | Senior debt | Senior debt | 8.250% Senior Notes due 2023 | 7.750% Senior Notes due 2021 | 6.00% Senior Notes due 2020 | Senior Notes 1999 Indenture | Senior Notes 1999 Indenture | ||||||||||||||
Springleaf Holding Inc. | Springleaf Holding Inc. | Springleaf Holding Inc. | Springleaf Holding Inc. | Springleaf Holding Inc. | Springleaf Holding Inc. | Springleaf Holding Inc. | Springleaf Holding Inc. | Springleaf Holding Inc. | Springleaf Holding Inc. | ||||||||||||||||
Principal maturities of long-term debt by type of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Contractual interest rate, minimum (as a percent) | ' | ' | 6.00% | [1] | 5.40% | [1] | 1.76% | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Contractual interest rate, maximum (as a percent) | ' | ' | 7.50% | [1] | 8.25% | [1] | 5.00% | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rates (as a percent) | ' | ' | ' | ' | ' | 6.00% | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.25% | 7.75% | 6.00% | ' | ' | ||||
Fourth quarter 2014 | $335,486,000 | ' | $335,486,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
First quarter 2015 | 16,575,000 | ' | 16,575,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Second quarter 2015 | 7,092,000 | ' | 7,092,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Third quarter 2015 | 23,544,000 | ' | 23,544,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Remainder of 2015 | 750,000,000 | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
2016 | 375,000,000 | ' | ' | 375,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
2017 | 2,360,837,000 | ' | ' | 2,360,837,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
2019-2067 | 1,600,000,000 | ' | ' | 1,250,000,000 | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Securitizations | 3,055,588,000 | [2] | ' | ' | ' | 3,055,588,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total principal maturities | 8,524,122,000 | ' | 382,697,000 | 4,735,837,000 | 3,055,588,000 | 350,000,000 | ' | 5,100,000 | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Long-term debt | 7,858,037,000 | [3] | 10,640,728,000 | 379,585,000 | [3] | 4,253,867,000 | [3] | 3,052,972,000 | [3],[4] | 171,613,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of each issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | 350,000,000 | 5,100,000,000 | 5,200,000,000 | ' | ' | ' | 3,900,000,000 | 3,900,000,000 | |||||
Term of debt | ' | ' | ' | ' | ' | ' | '60 years | ' | ' | ' | '60 years | '60 years | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Outstanding principal balance of the notes, plus accrued and unpaid interest repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | $750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
[1] | The interest rates shown are the range of contractual rates in effect at September 30, 2014. | ||||||||||||||||||||||||
[2] | Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 9 for further information on our long-term debt associated with securitizations. | ||||||||||||||||||||||||
[3] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. | ||||||||||||||||||||||||
[4] | *As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 26, 2014 | Sep. 30, 2014 | Jun. 26, 2014 | Mar. 26, 2014 | Mar. 26, 2014 | Sep. 26, 2013 | Jun. 13, 2013 | Jun. 13, 2014 | Sep. 26, 2013 | Mar. 27, 2014 | Sep. 25, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |||||||
Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Spring Castle Portfolio | Spring Castle Portfolio | Spring Castle Portfolio | Spring Castle Portfolio | Spring Castle Portfolio | Spring Castle Portfolio | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Consumer Loan Securitizations | Mortgage Loan Securitizations | Mortgage Loan Securitizations | Mortgage Loan Securitizations | Mortgage Loan Securitizations | Mortgage Loan Securitizations | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | Consolidated VIEs | |||||||||||||||
Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | Mortgage Loan Securitizations | Mortgage Loan Securitizations | Mortgage Loan Securitizations | ||||||||||||||||||||||||||||||||||||||
2013-B Trust | The 2012-2 Trust | The 2012-3 Trust | The 2013-2 Trust | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Spring Castle Portfolio | Real Estate Loans | Real Estate Loans | ||||||||||||||||||||||||||||||||||||||||
Whitford Brook 2014-VFN1 Securitization | Whitford Brook 2014-VFN1 Securitization | Whitford Brook 2014-VFN1 Securitization | 2014-A Trust | 2014-A Trust | Midbrook 2013-VFN1 Securitization | Midbrook 2013-VFN1 Securitization | Midbrook 2013-VFN1 Securitization | Midbrook 2013-VFN1 Securitization | 2013-BAC Trust Notes | 2013-BAC Trust Notes | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Ownership percentage in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Loans and Leases Receivable, Net of Deferred Income | $6,375,178,000 | ' | $6,375,178,000 | ' | ' | $11,143,859,000 | ' | ' | $3,579,588,000 | ' | $3,159,932,000 | ' | ' | ' | $2,083,145,000 | ' | ' | ' | ' | ' | $655,545,000 | ' | $7,885,016,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,200,000,000 | $1,841,139,000 | $1,572,070,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,083,145,000 | [1] | ' | $5,595,150,000 | |||||
Allowance for finance receivable losses | 162,440,000 | 279,223,000 | 162,440,000 | 279,223,000 | 366,496,000 | 332,195,000 | 241,628,000 | 182,701,000 | 123,293,000 | 106,249,000 | 94,323,000 | 69,543,000 | 60,250,000 | 66,580,000 | 319,000 | ' | ' | ' | ' | ' | 37,634,000 | 258,897,000 | 236,032,000 | 208,655,000 | 180,458,000 | 113,861,000 | ' | ' | ' | ' | ' | ' | 67,800,000 | ' | 67,800,000 | ' | 153,084,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Restricted cash | 311,425,000 | ' | 311,425,000 | ' | ' | 358,759,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 295,693,000 | ' | 295,693,000 | ' | 345,906,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Long-term debt | 7,858,037,000 | [2] | ' | 7,858,037,000 | [2] | ' | ' | 10,640,728,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,052,972,000 | [1] | ' | 3,052,972,000 | [1] | ' | 5,160,227,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Consolidated interest expense | 172,492,000 | 205,270,000 | 526,035,000 | 649,861,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,200,000 | 39,900,000 | 129,500,000 | 101,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Variable Interest Entities, other information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Maximum amount of notes that may be issued under private securitization facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ||||||
Funding period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Required minimum balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Amount drawn | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Amounts funded at closing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ||||||
Amount of notes sold under private securitization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 559,300,000 | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ||||||
Weighted average yield (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.62% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Proceeds from notes sold under securitization transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 114,000,000 | ' | ' | 20,000,000 | 7,500,000 | 157,517,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 559,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Additional debt recorded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,578,000 | ' | ' | 20,675,000 | 7,753,000 | 148,559,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Funding period including extended period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ||||||
Interest reserve requirement on notes sold under securitization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Notes initially retained by the entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Outstanding principal balance of the notes, plus accrued and unpaid interest repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 231,300,000 | ' | ' | ' | ' | ||||||
Amount of loans sold | ' | ' | 6,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Real estate loans sold, reserve for sales recourse obligations | $9,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
[1] | *As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Aug. 05, 2013 | Jan. 31, 2013 | Aug. 05, 2013 | |
Other revenues- other | Other revenues- other | Affiliated Entity | Affiliated Entity | AIGFP | |
instrument | Cash flow hedges | Affiliated Entity | |||
Interest Expense | Cross currency interest rate swap agreement | ||||
Other revenues- other | |||||
Derivative Financial Instruments | ' | ' | ' | ' | ' |
Amount of deferred net gain reclassified from accumulated other comprehensive income or loss | ' | ' | ' | $200,000 | ' |
Loss recorded on termination | ' | ' | ' | ' | 1,900,000 |
Number of derivative instruments | ' | ' | 0 | ' | ' |
Net loss on non-designated hedging instruments | -1,000,000 | 3,400,000 | ' | ' | ' |
Derivative adjustments | ' | ' | ' | ' | ' |
Mark to market gains (losses) | 6,260,000 | -8,244,000 | ' | ' | ' |
Net interest income | 1,701,000 | 9,161,000 | ' | ' | ' |
Credit valuation adjustment gains (losses) | 11,000 | 50,000 | ' | ' | ' |
Derivatives Other Adjustments Included in Other Revenues | -292,000 | -292,000 | ' | ' | ' |
Total | $7,680,000 | $675,000 | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Unrealized gains (losses) on investment securities | Unrealized gains (losses) on investment securities | Unrealized gains (losses) on investment securities | Unrealized gains (losses) on investment securities | Unrealized Gains (Losses) Cash Flow Hedges | Retirement Plan Liabilities Adjustments | Retirement Plan Liabilities Adjustments | Retirement Plan Liabilities Adjustments | Retirement Plan Liabilities Adjustments | Retirement Plan Liabilities Adjustments | Retirement Plan Liabilities Adjustments | Foreign Currency Translation Adjustments | Foreign Currency Translation Adjustments | Foreign Currency Translation Adjustments | Foreign Currency Translation Adjustments | |||||
Changes in accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $37,790 | $19,842 | $28,095 | $25,896 | $14,551 | $5,501 | $4,362 | $13,545 | $104 | $20,153 | $20,153 | $20,153 | $8,120 | $8,120 | $8,120 | $3,086 | $6,221 | $3,580 | $4,127 |
Other comprehensive income (loss) before reclassifications | -1,730 | -2,333 | 10,108 | -7,038 | -2,491 | -277 | 9,841 | -7,076 | ' | ' | ' | ' | ' | ' | ' | 761 | -2,056 | 267 | 38 |
Reclassification adjustments from accumulated other comprehensive income | -1,793 | 203 | -3,936 | -1,146 | -1,793 | 203 | -3,936 | -1,042 | -104 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at end of period | $34,267 | $17,712 | $34,267 | $17,712 | $10,267 | $5,427 | $10,267 | $5,427 | $0 | $20,153 | $20,153 | $20,153 | $8,120 | $8,120 | $8,120 | $3,847 | $4,165 | $3,847 | $4,165 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reclassification adjustments from accumulated other comprehensive income | ' | ' | ' | ' |
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | $11,206 | $6,532 | $31,266 | $25,858 |
Reclassification from accumulated other comprehensive income to interest expense, before taxes | -172,492 | -205,270 | -526,035 | -649,861 |
Income tax effect | -219,092 | 57,145 | -275,983 | 44,097 |
Net income (loss) | 428,506 | -93,908 | 519,986 | -74,045 |
Reclassification adjustments | ' | ' | ' | ' |
Reclassification adjustments from accumulated other comprehensive income | ' | ' | ' | ' |
Net income (loss) | 1,793 | -203 | 3,936 | 1,146 |
Unrealized gains (losses) on investment securities | Reclassification adjustments | ' | ' | ' | ' |
Reclassification adjustments from accumulated other comprehensive income | ' | ' | ' | ' |
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | 2,758 | -312 | 6,055 | 1,603 |
Income tax effect | -965 | 109 | -2,119 | -561 |
Net income (loss) | 1,793 | -203 | 3,936 | 1,042 |
Unrealized gains on cash flow hedges | Reclassification adjustments | ' | ' | ' | ' |
Reclassification adjustments from accumulated other comprehensive income | ' | ' | ' | ' |
Reclassification from accumulated other comprehensive income to interest expense, before taxes | ' | ' | ' | 160 |
Income tax effect | ' | ' | ' | -56 |
Net income (loss) | ' | ' | ' | $104 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Income taxes | ' | ' | ' |
Net deferred tax liabilities | $151.30 | ' | $141.90 |
Effective income tax rate (as a percent) | 34.70% | 37.30% | ' |
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | 1.80% | ' | ' |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 1.50% | ' | ' |
State | ' | ' | ' |
Income taxes | ' | ' | ' |
Valuation allowance | 24.9 | ' | 23.8 |
United Kingdom and Puerto Rico operations | ' | ' | ' |
Income taxes | ' | ' | ' |
Valuation allowance | $22.20 | ' | $21.40 |
Contingencies_Details
Contingencies (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Estimated PPI claims reserve | $22.10 | $33.50 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Interest cost | $3,805 | $3,589 | $11,441 | $10,769 |
Expected return on assets | -4,107 | -3,874 | -12,326 | -11,622 |
Amortization of net loss (gain) | 2 | 12 | 4 | 35 |
Net periodic benefit cost | -300 | -273 | -881 | -818 |
Postretirement | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | 20 | 81 | 64 | 242 |
Interest cost | 21 | 64 | 73 | 193 |
Amortization of net loss (gain) | -81 | ' | -215 | ' |
Net periodic benefit cost | ($40) | $145 | ($78) | $435 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Share-based compensation expense, net of forfeitures | $0.40 | $131.30 | $3.50 | $131.30 |
Segment_Information_Details
Segment Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Aug. 29, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 01, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 01, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||||||||||
segment | Consumer Portfolio Segment [Member] | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Other | Other | Other | Other | Other | Push-down Accounting Adjustments | Push-down Accounting Adjustments | Push-down Accounting Adjustments | Push-down Accounting Adjustments | Spring Castle Acquisition | Spring Castle Portfolio | Spring Castle Portfolio | Spring Castle Portfolio | Spring Castle Portfolio | |||||||||||||||||||||
state | Consumer | Consumer | Consumer | Consumer | Insurance | Insurance | Insurance | Insurance | Acquisitions and Servicing | Acquisitions and Servicing | Real Estate Loans | Real Estate Loans | Real Estate Loans | Real Estate Loans | state | Real Estate Loans | Acquisitions and Servicing | |||||||||||||||||||||||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Number of business segments | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Number of states in which branch operations are conducted | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.00% | ' | ' | ' | ' | ||||||||||||
Number of states with legacy operations where branch-based personal lending ceased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Real estate loans | ' | ' | ' | ' | $655,545 | ' | $655,545 | ' | $7,885,016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Finance charges | ' | ' | ' | ' | 385,314 | 417,141 | 1,171,994 | 1,233,504 | ' | ' | 234,659 | ' | 662,979 | ' | ' | ' | ' | ' | 83,732 | 83,732 | 52,994 | ' | 334,070 | ' | 3,852 | ' | 13,268 | ' | ' | 10,077 | ' | 77,945 | ' | ' | ' | ' | ' | ' | ||||||||||||
Finance receivables held for sale originated as held for investment | ' | ' | ' | ' | 46,502 | ' | 53,744 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,327 | ' | 47,457 | ' | ' | ' | ' | ' | ' | 6,175 | ' | 6,287 | ' | ' | ' | ' | ' | ' | ||||||||||||
Total interest income | ' | ' | ' | ' | 431,816 | 417,141 | 1,225,738 | 1,233,504 | ' | ' | 234,659 | 188,294 | 662,979 | 519,315 | ' | ' | ' | ' | 83,732 | 83,732 | 93,321 | 168,873 | 381,527 | 529,447 | 3,852 | 10,000 | 13,268 | 37,630 | ' | 16,252 | 49,974 | 84,232 | 147,112 | ' | ' | ' | ' | ' | ||||||||||||
Interest expense | ' | ' | ' | ' | 172,492 | 205,270 | 526,035 | 649,861 | ' | ' | 40,234 | 38,254 | 121,428 | 111,393 | ' | ' | ' | ' | 11,593 | 11,593 | 82,465 | 129,776 | 286,955 | 421,989 | 1,846 | 3,329 | 5,821 | 12,198 | ' | 36,354 | 33,911 | 100,238 | 104,281 | ' | ' | ' | ' | ' | ||||||||||||
Net interest income | ' | ' | ' | ' | 259,324 | 211,871 | 699,703 | 583,643 | ' | ' | 194,425 | 150,040 | 541,551 | 407,922 | ' | ' | ' | ' | 72,139 | 72,139 | 10,856 | 39,097 | 94,572 | 107,458 | 2,006 | 6,671 | 7,447 | 25,432 | ' | -20,102 | 16,063 | -16,006 | 42,831 | ' | ' | ' | ' | ' | ||||||||||||
Provision for finance receivable losses | ' | ' | ' | ' | 92,114 | [1] | 101,390 | [1] | 273,372 | [1] | 260,005 | [1] | ' | ' | 55,357 | 38,111 | 147,697 | 52,126 | ' | ' | ' | ' | 18,072 | 18,072 | 37,239 | 52,547 | 119,228 | 189,600 | 1,291 | 2,364 | 6,557 | -3,384 | ' | -19,845 | 8,368 | -18,182 | 21,663 | ' | 18,073 | [1] | ' | [1] | 18,073 | [1] | ' | [1] | ||||
Net interest income after provision for finance receivable losses | ' | ' | ' | ' | 167,210 | 110,481 | 426,331 | 323,638 | ' | ' | 139,068 | 111,929 | 393,854 | 355,796 | ' | ' | ' | ' | 54,067 | 54,067 | -26,383 | -13,450 | -24,656 | -82,142 | 715 | 4,307 | 890 | 28,816 | ' | -257 | 7,695 | 2,176 | 21,168 | ' | ' | ' | ' | ' | ||||||||||||
Other revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Insurance | ' | ' | ' | ' | 44,010 | 38,277 | 125,116 | 107,144 | ' | ' | ' | ' | ' | ' | 43,984 | 38,266 | 125,023 | 107,114 | ' | ' | ' | ' | ' | ' | 27 | 18 | 98 | 58 | ' | -1 | -7 | -5 | -28 | ' | ' | ' | ' | ' | ||||||||||||
Investment | ' | ' | ' | ' | 11,206 | 6,532 | 31,266 | 25,858 | ' | ' | ' | ' | ' | ' | 13,722 | 8,313 | 35,652 | 31,792 | ' | ' | -953 | ' | -953 | ' | ' | ' | ' | ' | ' | -1,563 | -1,781 | -3,433 | -5,934 | ' | ' | ' | ' | ' | ||||||||||||
Intersegment - insurance commissions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,489 | 15,086 | 51,390 | 43,296 | -19,708 | -15,097 | -51,822 | -43,302 | ' | ' | 219 | 42 | 442 | 100 | ' | -31 | -10 | -94 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Net gain (loss) on repurchases and repayments of debt | ' | ' | ' | ' | ' | -33,572 | -6,615 | -33,809 | ' | ' | ' | -2,891 | -1,426 | -4,391 | ' | ' | ' | ' | ' | ' | ' | -15,817 | -10,025 | -35,417 | ' | -706 | -48 | -977 | ' | ' | -14,158 | 4,884 | 6,976 | ' | ' | ' | ' | ' | ||||||||||||
Net gain (loss) on fair value adjustments on debt | ' | ' | ' | ' | 1,523 | ' | 1,523 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,523 | 1,523 | ' | 12,216 | 8,298 | 45,427 | ' | ' | ' | ' | ' | ' | -12,216 | -8,298 | -45,427 | ' | ' | ' | ' | ' | ||||||||||||
Net gain (loss) on sales of real estate loans and related trust assets | 11,700 | 604,900 | 34,800 | 55,200 | 616,534 | [2] | ' | 706,520 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 286,357 | [2] | ' | 201,362 | [3] | ' | ' | ' | ' | ' | ' | 330,177 | [2] | ' | 505,158 | [3] | ' | ' | ' | ' | ' | ' | ||||||
Other | ' | ' | ' | ' | -10,454 | 5,514 | -3,240 | 20,874 | ' | ' | 609 | 492 | 1,731 | 1,256 | 2,428 | 2,426 | 6,103 | 6,797 | ' | ' | -2,163 | -1,842 | -3,070 | -1,372 | 1,372 | 4,404 | 4,696 | 14,328 | ' | -12,700 | 34 | -12,700 | -135 | ' | ' | ' | ' | ' | ||||||||||||
Total other revenues | ' | ' | ' | ' | 662,819 | 16,751 | 854,570 | 120,067 | ' | ' | 20,098 | 12,687 | 51,695 | 40,161 | 40,426 | 33,908 | 114,956 | 102,401 | 1,523 | 1,523 | 283,460 | -5,401 | 196,054 | 8,738 | 1,399 | 3,685 | 4,736 | 13,315 | ' | 315,913 | -28,128 | 485,606 | -44,548 | ' | ' | ' | ' | ' | ||||||||||||
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Salaries and benefits | ' | ' | ' | ' | 85,602 | 209,625 | 249,065 | 363,163 | ' | ' | 61,751 | 61,398 | 190,951 | 182,051 | 4,790 | 4,480 | 14,500 | 11,402 | 2 | 2 | 17,185 | 7,551 | 34,558 | 20,541 | 1,916 | 136,249 | 9,183 | 149,329 | ' | -42 | -53 | -129 | -160 | ' | ' | ' | ' | ' | ||||||||||||
Other operating expenses | ' | ' | ' | ' | 76,688 | 52,110 | 178,694 | 151,034 | ' | ' | 41,500 | 30,867 | 106,780 | 89,642 | 3,456 | 3,288 | 10,291 | 8,369 | 11,787 | 11,787 | 17,890 | 14,789 | 42,088 | 43,431 | 1,092 | 2,063 | 4,839 | 6,174 | ' | 963 | 1,103 | 2,909 | 3,418 | ' | ' | ' | ' | ' | ||||||||||||
Insurance losses and loss adjustment expenses | ' | ' | ' | ' | 20,141 | 16,550 | 57,173 | 47,650 | ' | ' | ' | ' | ' | ' | 20,451 | 16,849 | 57,923 | 48,373 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -310 | -299 | -750 | -723 | ' | ' | ' | ' | ' | ||||||||||||
Total other expenses | ' | ' | ' | ' | 182,431 | 278,285 | 484,932 | 561,847 | ' | ' | 103,251 | 92,265 | 297,731 | 271,693 | 28,697 | 24,617 | 82,714 | 68,144 | 11,789 | 11,789 | 35,075 | 22,340 | 76,646 | 63,972 | 3,008 | 138,312 | 14,022 | 155,503 | ' | 611 | 751 | 2,030 | 2,535 | ' | ' | ' | ' | ' | ||||||||||||
Income (loss) before provision for income taxes | ' | ' | ' | ' | 647,598 | -151,053 | 795,969 | -118,142 | ' | ' | 55,915 | 32,351 | 147,818 | 124,264 | 11,729 | 9,291 | 32,242 | 34,257 | 43,801 | 43,801 | 222,002 | -41,191 | 94,752 | -137,376 | -894 | -130,320 | -8,396 | -113,372 | ' | 315,045 | -21,184 | 485,752 | -25,915 | ' | ' | ' | ' | ' | ||||||||||||
Income (loss) from Continuing Operations before Income Taxes Attributable to Noncontrolling Interest | ' | ' | ' | ' | 23,225 | ' | 23,225 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,225 | 23,225 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Income (loss) from Continuing Operations before Income Taxes | ' | ' | ' | ' | 624,373 | ' | 772,744 | ' | ' | ' | 55,915 | ' | 147,818 | ' | 11,729 | ' | 32,242 | ' | 20,576 | 20,576 | 222,002 | ' | 94,752 | ' | -894 | ' | -8,396 | ' | ' | 315,045 | ' | 485,752 | ' | ' | ' | ' | ' | ' | ||||||||||||
Assets | ' | ' | ' | ' | $11,335,190 | $13,901,868 | $11,335,190 | $13,901,868 | $12,732,037 | ' | $3,668,399 | $3,065,463 | $3,668,399 | $3,065,463 | $1,060,074 | $913,440 | $1,060,074 | $913,440 | $2,249,621 | $2,249,621 | $3,633,492 | $8,761,219 | $3,633,492 | $8,761,219 | $714,987 | $1,801,248 | $714,987 | $1,801,248 | ' | $8,617 | ($639,502) | $8,617 | ($639,502) | ' | ' | ' | ' | ' | ||||||||||||
[1] | Components of provision for finance receivable losses on our real estate loans were as follows:(dollars in thousands) Three Months Ended September 30, 2014 Three Months Ended September 30, 2013 Nine Months Ended September 30, 2014 Nine Months Ended September 30, 2013 Revised RevisedReal estate loans Provision for finance receivable losses Non-credit impaired finance receivables $6,376 $17,806 $32,189 $62,781Purchased credit impaired finance receivables 3,011 21,210 28,594 60,511TDR finance receivables 6,725 20,846 41,949 76,665Total $16,112 $59,862 $102,732 $199,957 | |||||||||||||||||||||||||||||||||||||||||||||||||
[2] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the date the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sale of these loans. | |||||||||||||||||||||||||||||||||||||||||||||||||
[3] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. |
Prior_Period_Revisions_Details
Prior Period Revisions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Interest income | $431,816 | $417,141 | $1,225,738 | $1,233,504 | ||||
Interest expense | 172,492 | 205,270 | 526,035 | 649,861 | ||||
Net interest income | 259,324 | 211,871 | 699,703 | 583,643 | ||||
Provision for finance losses | 92,114 | [1] | 101,390 | [1] | 273,372 | [1] | 260,005 | [1] |
Net interest income after provision for finance receivable losses | 167,210 | 110,481 | 426,331 | 323,638 | ||||
Other revenues: | ' | ' | ' | ' | ||||
Insurance | 44,010 | 38,277 | 125,116 | 107,144 | ||||
Investment | 11,206 | 6,532 | 31,266 | 25,858 | ||||
Net loss on repurchases and repayments of debt | ' | -33,572 | -6,615 | -33,809 | ||||
Other | -10,454 | 5,514 | -3,240 | 20,874 | ||||
Total other revenues | 662,819 | 16,751 | 854,570 | 120,067 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Salaries and benefits | 85,602 | 209,625 | 249,065 | 363,163 | ||||
Other operating | 76,688 | 52,110 | 178,694 | 151,034 | ||||
Insurance losses and loss adjustment expenses | 20,141 | 16,550 | 57,173 | 47,650 | ||||
Total other expenses | 182,431 | 278,285 | 484,932 | 561,847 | ||||
Income (loss) before provision for income taxes | 647,598 | -151,053 | 795,969 | -118,142 | ||||
Provision for (benefit from) income taxes | 219,092 | -57,145 | 275,983 | -44,097 | ||||
Net income (loss) | 428,506 | -93,908 | 519,986 | -74,045 | ||||
As Reported | ' | ' | ' | ' | ||||
Interest income | ' | 417,627 | ' | 1,235,483 | ||||
Interest expense | ' | 205,036 | ' | 646,932 | ||||
Net interest income | ' | 212,591 | ' | 588,551 | ||||
Provision for finance losses | ' | 97,414 | ' | 262,142 | ||||
Net interest income after provision for finance receivable losses | ' | 115,177 | ' | 326,409 | ||||
Other revenues: | ' | ' | ' | ' | ||||
Insurance | ' | 38,277 | ' | 107,144 | ||||
Investment | ' | 6,756 | ' | 26,291 | ||||
Net loss on repurchases and repayments of debt | ' | -34,503 | ' | -34,558 | ||||
Other | ' | 5,514 | ' | 20,874 | ||||
Total other revenues | ' | 16,044 | ' | 119,751 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Salaries and benefits | ' | 209,625 | ' | 363,163 | ||||
Other operating | ' | 52,110 | ' | 151,034 | ||||
Insurance losses and loss adjustment expenses | ' | 16,550 | ' | 47,650 | ||||
Total other expenses | ' | 278,285 | ' | 561,847 | ||||
Income (loss) before provision for income taxes | ' | -147,064 | ' | -115,687 | ||||
Provision for (benefit from) income taxes | ' | -55,669 | ' | -42,001 | ||||
Net income (loss) | ' | -91,395 | ' | -73,686 | ||||
Out-of-Period | ' | ' | ' | ' | ||||
Interest income | ' | 0 | ' | 0 | ||||
Interest expense | ' | 0 | ' | 0 | ||||
Net interest income | ' | 0 | ' | 0 | ||||
Provision for finance losses | ' | 4,389 | ' | -860 | ||||
Net interest income after provision for finance receivable losses | ' | -4,389 | ' | 860 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Income (loss) before provision for income taxes | ' | -4,389 | ' | 860 | ||||
Provision for (benefit from) income taxes | ' | -1,624 | ' | -869 | ||||
Net income (loss) | ' | -2,765 | ' | 1,729 | ||||
Adjustments | ' | ' | ' | ' | ||||
Interest income | ' | -486 | ' | -1,979 | ||||
Interest expense | ' | 234 | ' | 2,929 | ||||
Net interest income | ' | -720 | ' | -4,908 | ||||
Provision for finance losses | ' | -413 | ' | -1,277 | ||||
Net interest income after provision for finance receivable losses | ' | -307 | ' | -3,631 | ||||
Other revenues: | ' | ' | ' | ' | ||||
Investment | ' | -224 | ' | -433 | ||||
Net loss on repurchases and repayments of debt | ' | 931 | ' | 749 | ||||
Total other revenues | ' | 707 | ' | 316 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Income (loss) before provision for income taxes | ' | 400 | ' | -3,315 | ||||
Provision for (benefit from) income taxes | ' | 148 | ' | -1,227 | ||||
Net income (loss) | ' | $252 | ' | ($2,088) | ||||
[1] | Components of provision for finance receivable losses on our real estate loans were as follows:(dollars in thousands) Three Months Ended September 30, 2014 Three Months Ended September 30, 2013 Nine Months Ended September 30, 2014 Nine Months Ended September 30, 2013 Revised RevisedReal estate loans Provision for finance receivable losses Non-credit impaired finance receivables $6,376 $17,806 $32,189 $62,781Purchased credit impaired finance receivables 3,011 21,210 28,594 60,511TDR finance receivables 6,725 20,846 41,949 76,665Total $16,112 $59,862 $102,732 $199,957 |
Prior_Period_Revisions_Details1
Prior Period Revisions (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net income (loss) | $428,506 | ($93,908) | $519,986 | ($74,045) |
Net unrealized losses on: | ' | ' | ' | ' |
Investment securities on which other-than-temporary impairments were taken | -8 | -17 | -357 | -135 |
All other investment securities | -3,826 | -412 | 15,500 | -10,747 |
Foreign currency translation adjustments | 761 | -2,056 | 267 | 38 |
Net unrealized losses on: | ' | ' | ' | ' |
Investment securities on which other-than-temporary impairments were taken | 3 | 6 | 125 | 47 |
All other investment securities | 1,340 | 146 | -5,427 | 3,759 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | -1,730 | -2,333 | 10,108 | -7,038 |
Reclassification adjustments included in net income: | ' | ' | ' | ' |
Net realized gains on investment securities | -2,758 | 312 | -6,055 | -1,603 |
Cash flow hedges | ' | ' | ' | -160 |
Income tax effect: | ' | ' | ' | ' |
Net realized gains on investment securities | 965 | -109 | 2,119 | 561 |
Cash flow hedges | ' | ' | ' | 56 |
Reclassification adjustments included in net income, net of tax | -1,793 | 203 | -3,936 | -1,146 |
Other comprehensive loss, net of tax | ' | -2,130 | ' | -8,184 |
Comprehensive income (loss) | 424,983 | -96,038 | 526,158 | -82,229 |
As Reported | ' | ' | ' | ' |
Net income (loss) | ' | -91,395 | ' | -73,686 |
Net unrealized losses on: | ' | ' | ' | ' |
Investment securities on which other-than-temporary impairments were taken | ' | -17 | ' | -135 |
All other investment securities | ' | -314 | ' | -10,747 |
Foreign currency translation adjustments | ' | -2,056 | ' | 38 |
Net unrealized losses on: | ' | ' | ' | ' |
Investment securities on which other-than-temporary impairments were taken | ' | 6 | ' | 47 |
All other investment securities | ' | 110 | ' | 3,761 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | ' | -2,271 | ' | -7,036 |
Reclassification adjustments included in net income: | ' | ' | ' | ' |
Net realized gains on investment securities | ' | -10 | ' | -2,036 |
Cash flow hedges | ' | ' | ' | -160 |
Income tax effect: | ' | ' | ' | ' |
Net realized gains on investment securities | ' | 4 | ' | 713 |
Cash flow hedges | ' | ' | ' | 56 |
Reclassification adjustments included in net income, net of tax | ' | -6 | ' | -1,427 |
Other comprehensive loss, net of tax | ' | -2,277 | ' | -8,463 |
Comprehensive income (loss) | ' | ($93,672) | ' | ($82,149) |
Prior_Period_Revisions_Details2
Prior Period Revisions (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Cash flows from operating activities | ' | ' | ' | ' | ||||
Net income (loss) | $428,506 | ($93,908) | $519,986 | ($74,045) | ||||
Reconciling adjustments: | ' | ' | ' | ' | ||||
Provision for finance receivable losses | 92,114 | [1] | 101,390 | [1] | 273,372 | [1] | 260,005 | [1] |
Depreciation and amortization | ' | ' | 31,580 | 52,993 | ||||
Deferral of finance receivable origination costs | ' | ' | ' | ' | ||||
Deferred income tax charge (benefit) | ' | ' | 13,985 | -109,181 | ||||
Net loss on repurchases and repayments of debt | ' | ' | 6,615 | 33,809 | ||||
Share-based compensation expense, net of forfeitures | ' | ' | 948 | 131,250 | ||||
Other | ' | ' | 791 | -445 | ||||
Cash flows due to changes in: | ' | ' | ' | ' | ||||
Other assets and other liabilities | ' | ' | 76,721 | 90,572 | ||||
Insurance claims and policyholder liabilities | ' | ' | 35,884 | 14,917 | ||||
Taxes receivable and payable | ' | ' | -66,318 | -46,147 | ||||
Accrued interest and finance charges | ' | ' | -11,248 | -29,957 | ||||
Restricted cash not reinvested | ' | ' | -17,460 | -5,715 | ||||
Other, net | ' | ' | 840 | -824 | ||||
Net cash provided by operating activities | ' | ' | 168,366 | 317,232 | ||||
Cash flows from investing activities | ' | ' | ' | ' | ||||
Finance receivables originated or purchased, net of deferred origination costs | ' | ' | -1,841,088 | -1,631,192 | ||||
Principal collections on finance receivables | ' | ' | 1,907,520 | 1,990,405 | ||||
Available-for-sale investment securities purchased | ' | ' | -260,905 | -90,279 | ||||
Trading investment securities purchased | ' | ' | -1,064,902 | -6,295 | ||||
Available-for-sale investment securities purchased | ' | ' | 209,125 | 176,111 | ||||
Trading investment securities purchased | ' | ' | 17,592 | 7,492 | ||||
Change in notes receivable from parent and affiliate | ' | ' | ' | -30,750 | ||||
Change in restricted cash | ' | ' | 5,241 | -227,213 | ||||
Proceeds from sale of real estate owned | ' | ' | 50,791 | 87,747 | ||||
Other, net | ' | ' | 4,041 | -12 | ||||
Net cash provided by investing activities | ' | ' | 2,454,838 | 276,014 | ||||
Cash flows from financing activities | ' | ' | ' | ' | ||||
Proceeds from issuance of long-term debt, net of commissions | ' | ' | 672,440 | 3,459,579 | ||||
Repayment of long-term debt | ' | ' | -1,763,458 | -4,381,451 | ||||
Capital contributions from parent | ' | ' | 21,731 | 21,000 | ||||
Net cash used for financing activities | ' | ' | -1,078,754 | -900,872 | ||||
Effect of exchange rate changes | ' | ' | -101 | -835 | ||||
Net change in cash and cash equivalents | ' | ' | 1,544,349 | -308,461 | ||||
Cash and cash equivalents at beginning of period | ' | 1,048,751 | 374,835 | 1,357,212 | ||||
Cash and cash equivalents at end of period | 1,919,184 | 1,048,751 | 1,919,184 | 1,048,751 | ||||
As Reported | ' | ' | ' | ' | ||||
Cash flows from operating activities | ' | ' | ' | ' | ||||
Net income (loss) | ' | -91,395 | ' | -73,686 | ||||
Reconciling adjustments: | ' | ' | ' | ' | ||||
Provision for finance receivable losses | ' | 97,414 | ' | 262,142 | ||||
Depreciation and amortization | ' | ' | ' | 48,085 | ||||
Deferral of finance receivable origination costs | ' | ' | ' | -42,141 | ||||
Deferred income tax charge (benefit) | ' | ' | ' | -126,924 | ||||
Net loss on repurchases and repayments of debt | ' | ' | ' | 17,075 | ||||
Share-based compensation expense, net of forfeitures | ' | ' | ' | 131,250 | ||||
Other | ' | ' | ' | -445 | ||||
Cash flows due to changes in: | ' | ' | ' | ' | ||||
Other assets and other liabilities | ' | ' | ' | 59,549 | ||||
Insurance claims and policyholder liabilities | ' | ' | ' | 14,917 | ||||
Taxes receivable and payable | ' | ' | ' | -30,731 | ||||
Accrued interest and finance charges | ' | ' | ' | 2,491 | ||||
Restricted cash not reinvested | ' | ' | ' | -5,716 | ||||
Other, net | ' | ' | ' | -823 | ||||
Net cash provided by operating activities | ' | ' | ' | 255,043 | ||||
Cash flows from investing activities | ' | ' | ' | ' | ||||
Finance receivables originated or purchased, net of deferred origination costs | ' | ' | ' | -1,589,051 | ||||
Principal collections on finance receivables | ' | ' | ' | 1,957,957 | ||||
Available-for-sale investment securities purchased | ' | ' | ' | -96,574 | ||||
Trading investment securities purchased | ' | ' | ' | ' | ||||
Available-for-sale investment securities purchased | ' | ' | ' | 183,603 | ||||
Trading investment securities purchased | ' | ' | ' | ' | ||||
Change in notes receivable from parent and affiliate | ' | ' | ' | -30,750 | ||||
Change in restricted cash | ' | ' | ' | -227,213 | ||||
Proceeds from sale of real estate owned | ' | ' | ' | 87,747 | ||||
Other, net | ' | ' | ' | -12 | ||||
Net cash provided by investing activities | ' | ' | ' | 285,707 | ||||
Cash flows from financing activities | ' | ' | ' | ' | ||||
Proceeds from issuance of long-term debt, net of commissions | ' | ' | ' | 3,477,534 | ||||
Repayment of long-term debt | ' | ' | ' | -4,346,910 | ||||
Capital contributions from parent | ' | ' | ' | 21,000 | ||||
Net cash used for financing activities | ' | ' | ' | -848,376 | ||||
Effect of exchange rate changes | ' | ' | ' | -835 | ||||
Net change in cash and cash equivalents | ' | ' | ' | -308,461 | ||||
Cash and cash equivalents at beginning of period | ' | ' | ' | 1,357,212 | ||||
Cash and cash equivalents at end of period | ' | $1,048,751 | ' | $1,048,751 | ||||
[1] | Components of provision for finance receivable losses on our real estate loans were as follows:(dollars in thousands) Three Months Ended September 30, 2014 Three Months Ended September 30, 2013 Nine Months Ended September 30, 2014 Nine Months Ended September 30, 2013 Revised RevisedReal estate loans Provision for finance receivable losses Non-credit impaired finance receivables $6,376 $17,806 $32,189 $62,781Purchased credit impaired finance receivables 3,011 21,210 28,594 60,511TDR finance receivables 6,725 20,846 41,949 76,665Total $16,112 $59,862 $102,732 $199,957 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investment securities | $1,696,870 | $555,614 |
Note receivable from parent | 167,989 | 167,989 |
Restricted cash | 311,425 | 358,759 |
Other assets: | ' | ' |
Receivable from parent and affiliates | 20,100 | 39,400 |
Fair Value Measurements Using Level 1 | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 1,919,184 | 374,835 |
Restricted cash | 311,425 | 358,759 |
Fair Value Measurements Using Level 2 | ' | ' |
Assets | ' | ' |
Investment securities | 1,683,120 | 531,997 |
Note receivable from parent | 167,989 | 167,989 |
Other assets: | ' | ' |
Receivable from parent and affiliates | 20,069 | 39,364 |
Liabilities | ' | ' |
Long-term debt | 8,812,305 | 11,776,576 |
Payable to parent and affiliate | 40,561 | 38,463 |
Fair Value Measurements Using Level 3 | ' | ' |
Assets | ' | ' |
Investment securities | 13,750 | 23,617 |
Net finance receivables, less allowance for finance receivable losses | 6,731,196 | 11,113,980 |
Finance receivables held for sale | 498,872 | ' |
Other assets: | ' | ' |
Commercial mortgage loans | 80,991 | 94,681 |
Escrow advance receivable | 7,728 | 23,527 |
Total Fair Value | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 1,919,184 | 374,835 |
Investment securities | 1,696,870 | 555,614 |
Net finance receivables, less allowance for finance receivable losses | 6,731,196 | 11,113,980 |
Finance receivables held for sale | 498,872 | ' |
Note receivable from parent | 167,989 | 167,989 |
Restricted cash | 311,425 | 358,759 |
Other assets: | ' | ' |
Commercial mortgage loans | 80,991 | 94,681 |
Escrow advance receivable | 7,728 | 23,527 |
Receivable from parent and affiliates | 20,069 | 39,364 |
Liabilities | ' | ' |
Long-term debt | 8,812,305 | 11,776,576 |
Payable to parent and affiliate | 40,561 | 38,463 |
Total Carrying Value | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 1,919,184 | 374,835 |
Investment securities | 1,696,870 | 555,614 |
Net finance receivables, less allowance for finance receivable losses | 6,212,738 | 10,811,664 |
Finance receivables held for sale | 493,196 | ' |
Note receivable from parent | 167,989 | 167,989 |
Restricted cash | 311,425 | 358,759 |
Other assets: | ' | ' |
Commercial mortgage loans | 87,553 | 102,200 |
Escrow advance receivable | 7,728 | 23,527 |
Receivable from parent and affiliates | 20,069 | 39,364 |
Liabilities | ' | ' |
Long-term debt | 7,858,037 | 10,640,728 |
Payable to parent and affiliate | $40,561 | $38,463 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Assets | ' | ' | ||
Available-for-sale securities | $566,808,000 | $503,364,000 | ||
Trading securities | 1,129,578,000 | 51,654,000 | ||
Total Investment securities | 1,696,870,000 | 555,614,000 | ||
Other fair value disclosures | ' | ' | ||
Interest in a limited partnership | 500,000 | 600,000 | ||
Transfer from Level 1 Assets to Level 2 | ' | ' | ||
Transfer from Level 2 Assets to Level 1 | ' | ' | ||
Transfer from Level 1 Liabilities to Level 2 | ' | ' | ||
Transfers from Level 2 Liabilities to Level 1 | ' | ' | ||
Bonds: | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 557,485,000 | 493,440,000 | ||
U.S. government and government sponsored entities | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 56,198,000 | 58,633,000 | ||
Trading securities | 134,381,000 | ' | ||
Obligations of states, municipalities, and political subdivisions | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 118,452,000 | 102,745,000 | ||
Trading securities | 87,340,000 | ' | ||
Corporate debt | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 262,750,000 | 237,916,000 | ||
Trading securities | 443,884,000 | 1,837,000 | ||
RMBS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 79,418,000 | 82,623,000 | ||
Trading securities | 64,527,000 | 10,671,000 | ||
CMBS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 22,098,000 | 7,547,000 | ||
Trading securities | 106,115,000 | 29,897,000 | ||
CDO/ABS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 18,569,000 | 3,976,000 | ||
Trading securities | 293,331,000 | 9,249,000 | ||
Preferred stocks | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 7,043,000 | 7,805,000 | ||
Other long-term investments | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 1,430,000 | [1] | 1,269,000 | [1] |
Common stocks | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 850,000 | 850,000 | ||
Total Carried At Fair Value | ' | ' | ||
Assets | ' | ' | ||
Total Investment securities | 1,696,870,000 | 555,614,000 | ||
Long-term Debt, Fair Value | 8,812,305,000 | 11,776,576,000 | ||
Not carried at fair value | Common stocks | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 900,000 | 900,000 | ||
Fair Value Measurements Using Level 2 | ' | ' | ||
Assets | ' | ' | ||
Total Investment securities | 1,683,120,000 | 531,997,000 | ||
Long-term Debt, Fair Value | 8,812,305,000 | 11,776,576,000 | ||
Fair Value Measurements Using Level 3 | ' | ' | ||
Assets | ' | ' | ||
Total Investment securities | 13,750,000 | 23,617,000 | ||
Recurring basis | Total Carried At Fair Value | ' | ' | ||
Assets | ' | ' | ||
Cash equivalents in mutual funds | 596,127,000 | 185,829,000 | ||
Available-for-sale securities | 565,958,000 | [2] | 502,514,000 | [2] |
Trading securities | 1,129,578,000 | 51,654,000 | ||
Total Investment securities | 1,695,536,000 | 554,168,000 | ||
Restricted cash in mutual funds | 290,495,000 | 321,617,000 | ||
Total | 2,582,158,000 | 1,061,614,000 | ||
Long-term Debt, Fair Value | 317,266,000 | ' | ||
Recurring basis | Total Carried At Fair Value | Bonds: | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 557,485,000 | 493,440,000 | ||
Recurring basis | Total Carried At Fair Value | U.S. government and government sponsored entities | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 56,198,000 | 58,633,000 | ||
Trading securities | 134,381,000 | ' | ||
Recurring basis | Total Carried At Fair Value | Obligations of states, municipalities, and political subdivisions | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 118,452,000 | 102,745,000 | ||
Trading securities | 87,340,000 | ' | ||
Recurring basis | Total Carried At Fair Value | Corporate debt | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 262,750,000 | 237,916,000 | ||
Trading securities | 443,884,000 | 1,837,000 | ||
Recurring basis | Total Carried At Fair Value | RMBS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 79,418,000 | 82,623,000 | ||
Trading securities | 64,527,000 | 10,671,000 | ||
Recurring basis | Total Carried At Fair Value | CMBS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 22,098,000 | 7,547,000 | ||
Trading securities | 106,115,000 | 29,897,000 | ||
Recurring basis | Total Carried At Fair Value | CDO/ABS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 18,569,000 | 3,976,000 | ||
Trading securities | 293,331,000 | 9,249,000 | ||
Recurring basis | Total Carried At Fair Value | Preferred stocks | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 7,043,000 | 7,805,000 | ||
Recurring basis | Total Carried At Fair Value | Other long-term investments | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 1,430,000 | [3] | 1,269,000 | [3] |
Recurring basis | Fair Value Measurements Using Level 1 | ' | ' | ||
Assets | ' | ' | ||
Cash equivalents in mutual funds | 596,127,000 | 185,829,000 | ||
Restricted cash in mutual funds | 290,495,000 | 321,617,000 | ||
Total | 886,622,000 | 507,446,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 560,333,000 | [2] | 487,726,000 | [2] |
Trading securities | 1,122,787,000 | 44,271,000 | ||
Total Investment securities | 1,683,120,000 | 531,997,000 | ||
Total | 1,683,120,000 | 531,997,000 | ||
Long-term Debt, Fair Value | 317,266,000 | ' | ||
Recurring basis | Fair Value Measurements Using Level 2 | Bonds: | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 553,290,000 | 479,921,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | U.S. government and government sponsored entities | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 56,198,000 | 58,633,000 | ||
Trading securities | 134,381,000 | ' | ||
Recurring basis | Fair Value Measurements Using Level 2 | Obligations of states, municipalities, and political subdivisions | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 118,452,000 | 102,745,000 | ||
Trading securities | 87,340,000 | ' | ||
Recurring basis | Fair Value Measurements Using Level 2 | Corporate debt | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 258,625,000 | 225,312,000 | ||
Trading securities | 443,884,000 | 1,837,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | RMBS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 79,363,000 | 82,510,000 | ||
Trading securities | 64,166,000 | 10,671,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | CMBS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 22,083,000 | 7,545,000 | ||
Trading securities | 106,115,000 | 29,897,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | CDO/ABS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 18,569,000 | 3,176,000 | ||
Trading securities | 286,901,000 | 1,866,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Preferred stocks | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 7,043,000 | 7,805,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 5,625,000 | [2] | 14,788,000 | [2] |
Trading securities | 6,791,000 | 7,383,000 | ||
Total Investment securities | 12,416,000 | 22,171,000 | ||
Total | 12,416,000 | 22,171,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | Bonds: | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 4,195,000 | 13,519,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | Corporate debt | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 4,125,000 | 12,604,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | RMBS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 55,000 | 113,000 | ||
Trading securities | 361,000 | ' | ||
Recurring basis | Fair Value Measurements Using Level 3 | CMBS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | 15,000 | 2,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | CDO/ABS | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | ' | 800,000 | ||
Trading securities | 6,430,000 | 7,383,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | Other long-term investments | ' | ' | ||
Assets | ' | ' | ||
Available-for-sale securities | $1,430,000 | [3] | $1,269,000 | [3] |
[1] | Excludes interest in a limited partnership that we account for using the equity method ($0.5 million at September 30, 2014 and $0.6 million at December 31, 2013). | |||
[2] | Common stocks not carried at fair value totaled $0.9 million at September 30, 2014 and December 31, 2013 and therefore have been excluded from the table above. | |||
[3] | Other long-term investments excludes our interest in a limited partnership of $0.5 million at September 30, 2014 and $0.6 million at December 31, 2013 that we account for using the equity method. |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||
Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Trading securities | Trading securities | Trading securities | Trading securities | Investment securities | Investment securities | Investment securities | Investment securities | Investment securities | Investment securities | Investment securities | Investment securities | Bonds: | Bonds: | Bonds: | Bonds: | Bonds: | Bonds: | Bonds: | Bonds: | Corporate debt | Corporate debt | Corporate debt | Corporate debt | Corporate debt | Corporate debt | Corporate debt | Corporate debt | RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | CMBS | CMBS | CMBS | CMBS | CMBS | CMBS | CMBS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | Other long-term investments | Other long-term investments | Other long-term investments | Other long-term investments | Other long-term investments | Other long-term investments | Other long-term investments | Other long-term investments | |||||||||||||||||||||||||||||||||||
Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Trading securities | Trading securities | Trading securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Trading securities | Trading securities | Trading securities | Trading securities | Trading securities | Trading securities | Trading securities | Trading securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||
Net gains (losses) included in: Other revenues | ' | ' | $31 | $58 | ($163) | $207 | ' | ' | ' | ' | $24 | ($9) | ' | ' | $55 | $9 | ($172) | ($355) | ' | ' | ' | ' | $31 | $58 | ($163) | $209 | ' | ' | ' | ' | $27 | $58 | ($177) | $166 | ' | ' | ' | ' | ' | $4 | ' | $14 | $35 | ' | ' | ' | ' | ' | ($4) | ' | ' | ' | $8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24 | ($49) | ($5) | ($562) | ' | ' | ' | ' | ' | ' | ' | ($2) | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||
Net gains (losses) included in: Other comprehensive income (loss) | ' | ' | 157 | -218 | -40 | 360 | ' | ' | ' | ' | ' | ' | ' | ' | 157 | -222 | -40 | -66 | ' | ' | ' | ' | -19 | -115 | -291 | 356 | ' | ' | ' | ' | -8 | 18 | -263 | 304 | ' | ' | ' | ' | ' | -6 | -133 | -44 | 46 | ' | ' | ' | ' | ' | ' | ' | -5 | 13 | 6 | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | -4 | ' | -426 | ' | ' | ' | ' | 176 | -103 | 251 | 4 | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||
Purchases, sales, issues, settlements | ' | ' | ' | [1] | -2,016 | [2] | 8,483 | [3] | -975 | [4] | ' | ' | ' | ' | 23 | [1] | 243 | [3] | ' | ' | 23 | [1] | -1,941 | [2] | 8,726 | [3] | 3,720 | [4] | ' | ' | ' | ' | ' | [1] | -2,016 | [2] | 8,393 | [3] | -986 | [4] | ' | ' | ' | ' | ' | [1] | -2,016 | [2] | 8,393 | [3] | -1,535 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | [1] | 88 | [3] | ' | ' | ' | 149 | [4] | ' | ' | ' | ' | 0 | [2] | ' | 400 | [4] | ' | ' | ' | 23 | [1] | 75 | [2] | 155 | [3] | 4,695 | [4] | ' | ' | ' | ' | ' | [1] | ' | [2] | 90 | [3] | 11 | [4] | ' | ' | ' | ' | |
Transfers into Level 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 361 | [5] | 1,602 | [6] | ' | ' | 361 | [5] | ' | 1,602 | [6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400 | ' | ' | ' | ' | ' | ' | ' | ' | 361 | [5] | 1,602 | [6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||
Transfers out of Level 3 | ' | ' | ' | ' | -803 | [7] | ' | ' | ' | ' | ' | ' | -1,960 | [7] | ' | ' | ' | ' | -2,763 | [7] | ' | ' | ' | ' | ' | ' | ' | -803 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,157 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | -803 | [7] | ' | ' | ' | ' | ' | ' | -803 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||
Balance at end of period | ' | ' | 5,625 | 17,352 | 5,625 | 17,352 | 5,499 | 14,788 | 15,612 | 16,224 | 6,791 | 6,791 | 6,477 | 7,383 | 12,416 | 24,985 | 12,416 | 24,985 | 11,976 | 22,171 | 23,275 | 28,416 | 4,195 | 15,977 | 4,195 | 15,977 | 4,245 | 13,519 | 14,134 | 14,844 | 4,125 | 15,090 | 4,125 | 15,090 | 4,160 | 12,604 | 13,114 | 13,417 | ' | 55 | 85 | 55 | 85 | 65 | 113 | 218 | 74 | 361 | 361 | ' | 15 | 15 | 2 | 20 | 2 | 2 | 153 | 800 | ' | 800 | 800 | 800 | 1,200 | 6,430 | 7,633 | 6,430 | 7,633 | 6,477 | 7,383 | 7,663 | 12,192 | 1,430 | 1,375 | 1,430 | 1,375 | 1,254 | 1,269 | 1,478 | 1,380 | ||||||||||||||||||||||||||||||||
Purchases, sales, or issues of investment securities | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||
[1] | “Purchases, sales, issues, and settlements†column consists only of settlements. There were no purchases, sales, or issues of investment securities for the three months ended September 30, 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The detail of purchases, sales, issues, and settlements for the three months ended September 30, 2013 is presented in the table below. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | “Purchases, sales, issues, and settlements†column only consist of settlements. There were no purchases, sales, or issues of investment securities for the nine months ended September 30, 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | The detail of purchases, sales, issues, and settlements for the nine months ended September 30, 2013 is presented in the table below. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | During the three months ended September 30, 2014, we transferred $0.4 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | During the nine months ended September 30, 2014, we transferred $1.6 million of RMBS securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | During the nine months ended September 30, 2014, we transferred RMBS and CDO/ABS securities totaling $2.8 million out of Level 3 primarily related to the re-evaluated observability of pricing inputs. |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (Level 3, Recurring, Discounted cash flows) | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | |||
Corporate debt | Corporate debt | Corporate debt | Corporate debt | RMBS | |||
bond | Minimum | Maximum | Weighted Average | bond | |||
Unobservable Input | ' | ' | ' | ' | ' | ||
Yield (as a percent) | 0.89% | [1] | 2.68% | 8.48% | 4.67% | 6.94% | [2] |
Number of bonds | 1 | ' | ' | ' | 1 | ||
[1] | At September 30, 2014, corporate debt consisted of one bond. | ||||||
[2] | At September 30, 2014, RMBS consisted of one bond. |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 5) (Non-recurring basis, USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Assets measured at fair value on a non-recurring basis | ' | ' | ' | ' | ' |
Assets at fair value | $43,012 | ' | $43,012 | ' | $83,404 |
Total impairment charges | 2,442 | 5,607 | 11,104 | 17,496 | ' |
Real estate owned | ' | ' | ' | ' | ' |
Assets measured at fair value on a non-recurring basis | ' | ' | ' | ' | ' |
Assets at fair value | 32,220 | ' | 32,220 | ' | 71,469 |
Impairment charges recorded on assets measured at fair value | 3,159 | 5,668 | 12,877 | 19,270 | ' |
Commercial mortgage loans | ' | ' | ' | ' | ' |
Assets measured at fair value on a non-recurring basis | ' | ' | ' | ' | ' |
Assets at fair value | 10,792 | ' | 10,792 | ' | 11,935 |
Impairment charges recorded on assets measured at fair value | -717 | -61 | -1,773 | -1,774 | ' |
Level 3 | ' | ' | ' | ' | ' |
Assets measured at fair value on a non-recurring basis | ' | ' | ' | ' | ' |
Assets at fair value | 43,012 | ' | 43,012 | ' | 83,404 |
Level 3 | Real estate owned | ' | ' | ' | ' | ' |
Assets measured at fair value on a non-recurring basis | ' | ' | ' | ' | ' |
Assets at fair value | 32,220 | ' | 32,220 | ' | 71,469 |
Level 3 | Commercial mortgage loans | ' | ' | ' | ' | ' |
Assets measured at fair value on a non-recurring basis | ' | ' | ' | ' | ' |
Assets at fair value | $10,792 | ' | $10,792 | ' | $11,935 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements 6 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Available-for-sale securities | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | ' | ' | ' | $2,016 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | ' | ' | -1,041 | ||||
Purchases, sales, issues, settlements | ' | [1] | 2,016 | [2] | -8,483 | [3] | 975 | [4] |
Available-for-sale securities | Bonds: | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | ' | ' | ' | 2,016 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | ' | ' | -1,030 | ||||
Purchases, sales, issues, settlements | ' | [1] | 2,016 | [2] | -8,393 | [3] | 986 | [4] |
Available-for-sale securities | Corporate debt | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | ' | 2,016 | ' | 2,016 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | ' | ' | -481 | ||||
Purchases, sales, issues, settlements | ' | [1] | 2,016 | [2] | -8,393 | [3] | 1,535 | [4] |
Available-for-sale securities | CDO/ABS | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | ' | ' | -400 | ||||
Purchases, sales, issues, settlements | ' | 0 | [2] | ' | -400 | [4] | ||
Available-for-sale securities | CMBS | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | ' | ' | -149 | ||||
Purchases, sales, issues, settlements | ' | ' | ' | -149 | [4] | |||
Available-for-sale securities | Other long-term investments | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | ' | ' | -11 | ||||
Purchases, sales, issues, settlements | ' | [1] | ' | [2] | -90 | [3] | -11 | [4] |
Trading securities | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Purchases, sales, issues, settlements | -23 | [1] | ' | -243 | [3] | ' | ||
Trading securities | CDO/ABS | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | -75 | ' | -4,695 | ||||
Purchases, sales, issues, settlements | -23 | [1] | -75 | [2] | -155 | [3] | -4,695 | [4] |
Investment securities | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | ' | 2,016 | ' | 2,016 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | ' | ' | ' | ' | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | ' | -75 | ' | -5,736 | ||||
Purchases, sales, issues, settlements | ($23) | [1] | $1,941 | [2] | ($8,726) | [3] | ($3,720) | [4] |
[1] | “Purchases, sales, issues, and settlements†column consists only of settlements. There were no purchases, sales, or issues of investment securities for the three months ended September 30, 2014. | |||||||
[2] | The detail of purchases, sales, issues, and settlements for the three months ended September 30, 2013 is presented in the table below. | |||||||
[3] | “Purchases, sales, issues, and settlements†column only consist of settlements. There were no purchases, sales, or issues of investment securities for the nine months ended September 30, 2014. | |||||||
[4] | The detail of purchases, sales, issues, and settlements for the nine months ended September 30, 2013 is presented in the table below. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||
Aug. 29, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 23, 2014 | Oct. 03, 2014 | Sep. 30, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Sep. 30, 2014 | Nov. 07, 2014 | Oct. 16, 2014 | Sep. 30, 2014 | Nov. 07, 2014 | Aug. 29, 2014 | Aug. 29, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | |
Corporate Joint Venture | Subsequent event | Subsequent event | Spring Castle Credit LLC | Consumer Loan Securitizations | Consumer Loan Securitizations | Consumer Loan Securitizations | September Whole Loan | September Whole Loan | September Whole Loan | November Whole Loan | November Whole Loan | Nationstar Mortgage LLC | Nationstar Mortgage LLC | Nationstar Mortgage LLC | Nationstar Mortgage LLC | |||
Corporate Joint Venture | Subsequent event | Spring Castle Credit Funding LLC | Spring Castle Credit Funding LLC | Subsequent event | Subsequent event | Subsequent event | Affiliated Entity | Subsequent event | Subsequent event | |||||||||
Subsequent event | Subsequent event | Affiliated Entity | ||||||||||||||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in joint venture | ' | ' | 47.00% | ' | 47.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of each issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | $2,620,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average yield (as a percent) | ' | ' | ' | ' | ' | ' | ' | 4.68% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from debt issuance | ' | ' | ' | ' | ' | ' | 2,550,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of long term debt | ' | ' | ' | ' | ' | 1,460,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of note purchased | ' | ' | ' | ' | ' | ' | ' | ' | 362,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt instrument retained | ' | ' | ' | ' | ' | ' | ' | ' | 61,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale price of mortgage loans sold | 1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 795,100,000 | ' | ' | 270,100,000 | ' | ' | ' | ' | ' |
Holdback provision related to mortgage loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' | 34,300,000 | ' | ' | ' | ' | ' |
Amount of holdback provision subject to finalization of terms and conditions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loans held-for-sale proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,800,000 | 20,000,000 | ' | 235,800,000 | ' | ' | ' | ' |
Proceeds from sale of MSRs | 38,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,700,000 |
Proceeds from sale of MSRs, percentage received | 50.00% | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 40.00% | 40.00% |
Proceeds from sale of MSRs, amount remaining, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% |
Proceeds from sale of MSRs, period to receive amount remaining, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | '120 days |
Amount of loans sold | ' | $6,000,000,000 | ' | ' | ' | ' | ' | ' | ' | $768,600,000 | ' | ' | $251,000,000 | ' | ' | ' | ' | ' |