Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
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-13 | ' |
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 | ' | 10,160,018 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $1,048,751 | $1,357,212 |
Investment securities | 568,207 | 669,170 |
Net finance receivables: | ' | ' |
Personal loans (includes loans of consolidated VIEs of $1.7 billion in 2013 and $0 in 2012) | 3,019,806 | 2,649,732 |
Real estate loans (includes loans of consolidated VIEs of $5.3 billion in 2013 and $4.0 billion in 2012) | 8,111,117 | 8,838,638 |
Retail sales finance | 117,888 | 208,357 |
Net finance receivables | 11,248,811 | 11,696,727 |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $87.8 million in 2013 and $14.7 million in 2012) | -279,485 | -180,136 |
Net finance receivables, less allowance for finance receivable losses | 10,969,326 | 11,516,591 |
Note receivable from parent | 537,989 | 537,989 |
Restricted cash (includes restricted cash of consolidated VIEs of $332.1 million in 2013 and $104.9 million in 2012) | 346,631 | 113,703 |
Other assets | 448,524 | 460,106 |
Total assets | 13,919,428 | 14,654,771 |
Liabilities and Shareholder's Equity | ' | ' |
Long-term debt (includes debt of consolidated VIEs of $5.3 billion in 2013 and $3.0 billion in 2012) | 11,740,773 | 12,454,316 |
Insurance claims and policyholder liabilities | 380,155 | 365,238 |
Deferred and accrued taxes | 171,318 | 303,845 |
Other liabilities | 293,889 | 268,179 |
Total liabilities | 12,586,135 | 13,391,578 |
Shareholder's equity: | ' | ' |
Common stock | 5,080 | 5,080 |
Additional paid-in capital | 408,261 | 256,012 |
Accumulated other comprehensive income | 21,143 | 29,606 |
Retained earnings | 898,809 | 972,495 |
Total shareholder's equity | 1,333,293 | 1,263,193 |
Total liabilities and shareholder's equity | $13,919,428 | $14,654,771 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Personal loans | $3,019,806 | $2,649,732 |
Real estate loans | 8,111,117 | 8,838,638 |
Allowance for finance receivable losses | 279,485 | 180,136 |
Restricted cash | 346,631 | 113,703 |
Long-term debt | 11,740,773 | 12,454,316 |
Consolidated Variable Interest Entity (VIEs) | ' | ' |
Personal loans | 1,700,000 | 0 |
Real estate loans | 5,300,000 | 4,000,000 |
Allowance for finance receivable losses | 87,784 | 14,690 |
Restricted cash | 332,066 | 104,853 |
Long-term debt | $5,302,555 | $2,978,338 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income: | ' | ' | ' | ' |
Finance charges | $417,627 | $416,855 | $1,235,483 | $1,269,966 |
Finance receivables held for sale originated as held for investment | ' | 346 | ' | 2,740 |
Total interest income | 417,627 | 417,201 | 1,235,483 | 1,272,706 |
Interest expense | 205,036 | 267,085 | 646,932 | 823,334 |
Net interest income | 212,591 | 150,116 | 588,551 | 449,372 |
Provision for finance receivable losses | 97,414 | 90,836 | 262,142 | 227,430 |
Net interest income after provision for finance receivable losses | 115,177 | 59,280 | 326,409 | 221,942 |
Other revenues: | ' | ' | ' | ' |
Insurance | 38,277 | 31,719 | 107,144 | 93,042 |
Investment | 6,756 | 5,747 | 26,291 | 21,378 |
Net loss on repurchases and repayments of debt | -34,503 | -10,670 | -34,558 | -11,750 |
Other | 5,514 | 1,853 | 20,874 | -19,204 |
Total other revenues | 16,044 | 28,649 | 119,751 | 83,466 |
Operating expenses: | ' | ' | ' | ' |
Salaries and benefits | 209,625 | 78,122 | 363,163 | 241,114 |
Other operating expenses | 52,110 | 71,774 | 151,034 | 214,157 |
Restructuring expenses | ' | ' | ' | 23,503 |
Insurance losses and loss adjustment expenses | 16,550 | 15,152 | 47,650 | 42,302 |
Total other expenses | 278,285 | 165,048 | 561,847 | 521,076 |
Loss before benefit from income taxes | -147,064 | -77,119 | -115,687 | -215,668 |
Benefit from income taxes | -55,669 | -27,146 | -42,001 | -74,490 |
Net loss | ($91,395) | ($49,973) | ($73,686) | ($141,178) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net loss | ($91,395) | ($49,973) | ($73,686) | ($141,178) |
Net unrealized gains (losses) on: | ' | ' | ' | ' |
Investment securities on which other-than-temporary impairments were taken | -17 | 84 | -135 | 316 |
All other investment securities | -314 | 3,777 | -10,747 | 14,942 |
Cash flow hedges | ' | ' | ' | -16,987 |
Retirement plan liabilities adjustments | ' | ' | ' | 20,937 |
Foreign currency translation adjustments | -2,056 | 3,067 | 38 | 4,280 |
Net unrealized (gains) losses on: | ' | ' | ' | ' |
Investment securities on which other-than-temporary impairments were taken | 6 | -29 | 47 | -110 |
All other investment securities | 110 | -1,322 | 3,761 | -5,230 |
Cash flow hedges | ' | ' | ' | 5,945 |
Retirement plan liabilities adjustments | ' | ' | ' | -7,544 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | -2,271 | 5,577 | -7,036 | 16,549 |
Reclassification adjustments included in net loss: | ' | ' | ' | ' |
Net realized (gains) losses on investment securities | -10 | 601 | -2,036 | 959 |
Cash flow hedges | ' | -1,192 | -160 | 11,478 |
Income tax effect: | ' | ' | ' | ' |
Net realized gains (losses) on investment securities | 4 | -211 | 713 | -336 |
Cash flow hedges | ' | 418 | 56 | -4,017 |
Reclassification adjustments included in net loss, net of tax | -6 | -384 | -1,427 | 8,084 |
Other comprehensive income (loss), net of tax | -2,277 | 5,193 | -8,463 | 24,633 |
Comprehensive income (loss) | ($93,672) | ($44,780) | ($82,149) | ($116,545) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholder's Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $1,408,799 | $5,080 | $236,076 | ($25,538) | $1,193,181 |
Increase (Decrease) in Shareholder's Equity | ' | ' | ' | ' | ' |
Capital contributions from parent and other | 19,942 | ' | 19,942 | ' | ' |
Change in net unrealized gains (losses): | ' | ' | ' | ' | ' |
Investment securities | 10,541 | ' | ' | 10,541 | ' |
Cash flow hedges | -3,581 | ' | ' | -3,581 | ' |
Retirement plan liabilities adjustments | 13,393 | ' | ' | 13,393 | ' |
Foreign currency translation adjustments | 4,280 | ' | ' | 4,280 | ' |
Net loss | -141,178 | ' | ' | ' | -141,178 |
Balance at Sep. 30, 2012 | 1,312,196 | 5,080 | 256,018 | -905 | 1,052,003 |
Balance at Dec. 31, 2012 | 1,263,193 | 5,080 | 256,012 | 29,606 | 972,495 |
Increase (Decrease) in Shareholder's Equity | ' | ' | ' | ' | ' |
Grant of restricted stock units by Springleaf Holdings, Inc. | 131,250 | ' | 131,250 | ' | ' |
Capital contributions from parent and other | 20,999 | ' | 20,999 | ' | ' |
Change in net unrealized gains (losses): | ' | ' | ' | ' | ' |
Investment securities | -8,397 | ' | ' | -8,397 | ' |
Cash flow hedges | -104 | ' | ' | -104 | ' |
Foreign currency translation adjustments | 38 | ' | ' | 38 | ' |
Net loss | -73,686 | ' | ' | ' | -73,686 |
Balance at Sep. 30, 2013 | $1,333,293 | $5,080 | $408,261 | $21,143 | $898,809 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net loss | ($73,686) | ($141,178) |
Reconciling adjustments: | ' | ' |
Provision for finance receivable losses | 262,142 | 227,430 |
Depreciation and amortization | 48,085 | 157,318 |
Deferral of finance receivable origination costs | -42,141 | -32,729 |
Deferred income tax benefit | -126,924 | -132,431 |
Writedowns and net loss on sales of real estate owned | 1,591 | 36,519 |
Writedowns on assets resulting from restructuring | ' | 5,046 |
Impairments of Ocean Finance and Mortgages Limited assets | ' | 8,342 |
Mark to market provision and net gain on sales of finance receivables held for sale originated as held for investment | ' | -4,536 |
Net loss on repurchases and repayments of debt | 17,075 | 11,750 |
Net realized losses (gains) on investment securities | -2,036 | 959 |
Grant of restricted stock units | 131,250 | ' |
Change in other assets and other liabilities | 59,549 | 122,500 |
Change in insurance claims and policyholder liabilities | 14,917 | 2,179 |
Change in taxes receivable and payable | -30,731 | 54,144 |
Change in accrued finance charges | 2,491 | -1,157 |
Change in restricted cash | -5,716 | -2,014 |
Other, net | -823 | -645 |
Net cash provided by operating activities | 255,043 | 311,497 |
Cash flows from investing activities | ' | ' |
Finance receivables originated or purchased | -1,589,051 | -1,234,866 |
Principal collections on finance receivables | 1,957,957 | 1,986,163 |
Purchase of finance receivables from affiliates | ' | -14,875 |
Sales and principal collections on finance receivables held for sale originated as held for investment | ' | 181,561 |
Investment securities purchased | -96,574 | -7,757 |
Investment securities called, sold, and matured | 183,603 | 101,285 |
Change in notes receivable from parent and affiliate | -30,750 | ' |
Change in restricted cash | -227,213 | -25,301 |
Proceeds from sale of real estate owned | 87,747 | 147,154 |
Other, net | -12 | -6,473 |
Net cash provided by investing activities | 285,707 | 1,126,891 |
Cash flows from financing activities | ' | ' |
Proceeds from issuance of long-term debt, net of commissions | 3,477,534 | 1,481,800 |
Repayment of long-term debt | -4,346,910 | -1,901,529 |
Capital contributions from parent | 21,000 | 21,000 |
Net cash used for financing activities | -848,376 | -398,729 |
Effect of exchange rate changes | -835 | 2,888 |
Increase (decrease) in cash and cash equivalents | -308,461 | 1,042,547 |
Cash and cash equivalents at beginning of period | 1,357,212 | 477,469 |
Cash and cash equivalents at end of period | 1,048,751 | 1,520,016 |
Supplemental non-cash activities | ' | ' |
Transfer of finance receivables to real estate owned | 69,521 | 141,895 |
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | ' | 182,208 |
Transfer of finance receivables held for sale to finance receivables held for investment | ' | $1,353 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Business and Summary of Significant Accounting Policies | ' |
Business and Summary of Significant Accounting Policies | ' |
1. Business and Summary of Significant Accounting Policies | |
Springleaf Finance Corporation (“SFC” or, collectively with its subsidiaries, whether directly or indirectly owned, “the Company,” “we,” “us,” or “our”) is a wholly owned subsidiary of Springleaf Finance, Inc. (“SFI”). At September 30, 2013, FCFI Acquisition LLC (“FCFI”), an affiliate of Fortress Investment Group LLC (“Fortress”), indirectly owned an 80% economic interest in SFI and American International Group, Inc. (“AIG”) indirectly owned a 20% economic interest in SFI. | |
Following a series of restructuring transactions completed on October 9, 2013, in connection with the initial public offering of common stock of Springleaf Holdings, Inc. (“SHI”), all of the common stock of SFI is owned by SHI. On October 21, 2013, SHI completed the initial public offering of its common stock. As of November 12, 2013, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owns approximately 75% of SHI’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress and AIG Capital Corporation, a subsidiary of AIG. | |
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 and its subsidiaries, all of which are wholly owned. | |
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, and the out-of-period adjustments recorded in the nine months ended September 30, 2013 discussed below. 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 audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012. To conform to the 2013 presentation, we reclassified certain items in the prior period. We have combined the branch real estate and centralized real estate data previously reported separately in the third quarter of 2012 due to a change in method of monitoring and assessing the credit risk of our liquidating real estate loan portfolio in the fourth quarter of 2012. | |
In our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, we made certain corrections to prior period amounts reported in our previously issued quarterly and annual consolidated financial statements and related notes related to: (1) our benefit from income taxes; (2) the allowance for finance receivable losses related to our securitized finance receivables; (3) the fair value of our net finance receivables, less allowance for finance receivable losses; and (4) the fair value disclosures of certain of our financial instruments. | |
The out-of-period adjustment related to our benefit from income taxes increased the provision for income taxes by $1.2 million for the nine months ended September 30, 2013. See Note 12 for further information on this out-of-period adjustment. | |
The disclosure of the allowance for finance receivable losses related to our securitized finance receivables at December 31, 2012, was previously incorrectly understated by $4.7 million. The parenthetical disclosure of the allowance of consolidated variable interest entities (“VIEs”) as of December 31, 2012 on our condensed consolidated balance sheet and the related VIE disclosures in Notes 3 and 9 have been corrected in this report to include the allowance for finance receivable losses on our securitized purchased credit impaired finance receivables. | |
The fair value disclosures of certain of our financial instruments at December 31, 2012 previously included the following misstatements: (1) the fair value of our net finance receivables, less allowance for finance receivable losses was understated by $177.0 million at December 31, 2012; (2) restricted cash (level 1) and escrow advance receivable (level 3) at December 31, 2012 were incorrectly excluded from the fair value disclosures of our financial instruments; (3) cash and cash equivalents in mutual funds measured at fair value on a recurring basis at December 31, 2012 incorrectly excluded mutual funds of $565.3 million; (4) restricted cash in mutual funds (level 1) measured at fair value on a recurring basis at December 31, 2012 were incorrectly excluded from the fair value disclosures of our financial instruments measured on a recurring basis; and (5) commercial mortgage loans (level 3) measured at fair value on a non-recurring basis at December 31, 2012 and related impairments recorded during 2012 were incorrectly excluded from the fair value disclosures of our financial instruments measured on a non-recurring basis. The affected fair value amounts disclosed in Note 18 have been corrected in this report. | |
In the second quarter of 2013, we recorded an out-of-period adjustment, which increased provision for finance receivable losses by $2.7 million for the nine months ended September 30, 2013. The adjustment related to the correction of the identification of certain bankrupt real estate loan accounts for consideration as troubled debt restructured (“TDR”) finance receivables. | |
In the third quarter of 2013, we recorded an out-of-period adjustment, which decreased provision for finance receivable losses by $3.8 million for the three months ended September 30, 2013. The adjustment related to the correction of certain inputs in our model supporting the TDR allowance for finance receivable losses. There was no impact for the nine months ended September 30, 2013 as the error was isolated to intra-period reporting in 2013. | |
After evaluating the quantitative and qualitative aspects of these corrections (individually and in aggregate), management has determined that our previously issued consolidated interim and annual financial statements were not materially misstated and that the out-of-period adjustments are immaterial to our estimated full year results. | |
Due to the significance of the ownership interest acquired by FCFI (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”). | |
ACCOUNTING PRONOUNCEMENTS ADOPTED | |
Offsetting Assets and Liabilities | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”), ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities, which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, the FASB issued ASU 2013-1, Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities (Topic 210), which amended the effective date for ASU 2011-11 to be effective for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods. The amendments were applied retrospectively for all prior periods presented. The adoption of this new standard did not have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
Comprehensive Income | |
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the reporting of reclassifications out of accumulated other comprehensive income or loss. The amendments require an entity to present (either on the face of the statement where net income is presented or in the notes) the effect of significant reclassifications out of accumulated other comprehensive income or loss on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments in this ASU became effective prospectively for the Company for reporting periods beginning after December 15, 2012. 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 | |
Income Taxes | |
In July 2013, the FASB issued 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 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and should be applied prospectively. The adoption of this ASU is not expected to have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
CHANGES IN ACCOUNTING POLICIES | |
Beginning in the period ended March 31, 2013, our servicing practice was updated for the charge-off policy for personal loans in an effort to more closely align the timing of charge-offs when the Company believes a particular loan is uncollectible. We charge off to the allowance for finance receivable losses, personal loans which are greater than 180 days contractually delinquent. | |
This change in policy was considered a change in estimate in accordance with ASC 250 and incorporated prospectively into our calculation of allowance for finance receivable losses beginning with the quarter ended March 31, 2013. We recorded $13.3 million in additional charge-offs in March 2013 as a result of this change. |
Finance_Receivables
Finance Receivables | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Finance Receivables | ' | |||||||||||||
Finance Receivables | ' | |||||||||||||
2. Finance Receivables | ||||||||||||||
Our finance receivable types include personal loans, 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. | ||||||||||||||
· Real estate loans – are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months, and are usually considered non-conforming. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. As of January 1, 2012, we ceased originating real estate loans. | ||||||||||||||
· 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: | ||||||||||||||
Personal | Real | Retail | ||||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
September 30, 2013 | ||||||||||||||
Gross receivables* | $ | 3,455,630 | $ | 8,069,358 | $ | 129,602 | $ | 11,654,590 | ||||||
Unearned finance charges and points and fees | (515,471 | ) | (2,137 | ) | (12,804 | ) | (530,412 | ) | ||||||
Accrued finance charges | 42,704 | 43,605 | 1,090 | 87,399 | ||||||||||
Deferred origination costs | 36,943 | 291 | - | 37,234 | ||||||||||
Total | $ | 3,019,806 | $ | 8,111,117 | $ | 117,888 | $ | 11,248,811 | ||||||
December 31, 2012 | ||||||||||||||
Gross receivables | $ | 2,984,423 | $ | 8,793,531 | $ | 233,296 | $ | 12,011,250 | ||||||
Unearned finance charges and points and fees | (402,828 | ) | (5,910 | ) | (27,087 | ) | (435,825 | ) | ||||||
Accrued finance charges | 36,937 | 50,666 | 2,148 | 89,751 | ||||||||||
Deferred origination costs | 31,200 | 351 | - | 31,551 | ||||||||||
Total | $ | 2,649,732 | $ | 8,838,638 | $ | 208,357 | $ | 11,696,727 | ||||||
* Gross receivables are defined below: | ||||||||||||||
· finance receivables purchased as a performing receivable – gross finance receivables equal the unpaid principal balance (“UPB”) for interest bearing accounts and the gross remaining contractual payments for precompute accounts plus the remaining unearned discount, net of premium established at the time of purchase to reflect the finance receivable balance at its fair value; | ||||||||||||||
· finance receivables originated subsequent to the Fortress Acquisition – gross finance receivables equals the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and | ||||||||||||||
· purchased credit impaired finance receivables – gross finance receivables equals 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 totaling $1.7 billion at September 30, 2013 and real estate loans totaling $5.3 billion at September 30, 2013 and $4.0 billion at December 31, 2012 associated with securitizations that remain on our balance sheet. The carrying amount of consolidated long-term debt associated with these securitizations totaled $5.3 billion at September 30, 2013 and $3.0 billion at December 31, 2012. See Note 9 for further discussion regarding our securitization transactions. Also included in the table above are finance receivables totaling $1.9 billion at September 30, 2013 and $5.2 billion at December 31, 2012, which have been pledged as collateral for our secured term loan. | ||||||||||||||
Unused credit lines extended to customers by the Company were as follows: | ||||||||||||||
September 30, | December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | ||||||||||||
Real estate loans | $ | 65,201 | $ | 86,437 | ||||||||||
Retail sales finance | - | * | 78,071 | |||||||||||
Total | $ | 65,201 | $ | 164,508 | ||||||||||
* Reflects the cessation of purchases of revolving retail accounts effective January 16, 2013. | ||||||||||||||
Unused lines of credit on our real estate loans can be suspended if one of the following occurs: the value of the real estate declines significantly below the property’s initial appraised value; we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or any other default by the borrower of any material obligation under the agreement. Unused lines of credit on home equity lines of credit can be terminated for delinquency. | ||||||||||||||
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 $0.5 million of revolving retail finance receivables that were more than 90 days past due at September 30, 2013, compared to $1.0 million at December 31, 2012. Our personal 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 receivable by type by days delinquent: | ||||||||||||||
Personal | Real | Retail | ||||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
September 30, 2013 | ||||||||||||||
Net finance receivables: | ||||||||||||||
60-89 days past due | $ | 26,048 | $ | 93,928 | $ | 1,705 | $ | 121,681 | ||||||
90-119 days past due | 19,375 | 63,055 | 1,094 | 83,524 | ||||||||||
120-149 days past due | 15,270 | 58,785 | 811 | 74,866 | ||||||||||
150-179 days past due | 12,261 | 38,424 | 649 | 51,334 | ||||||||||
180 days or more past due | 919 | 352,057 | 130 | 353,106 | ||||||||||
Total delinquent finance receivables | 73,873 | 606,249 | 4,389 | 684,511 | ||||||||||
Current | 2,897,643 | 7,321,444 | 110,114 | 10,329,201 | ||||||||||
30-59 days past due | 48,290 | 183,424 | 3,385 | 235,099 | ||||||||||
Total | $ | 3,019,806 | $ | 8,111,117 | $ | 117,888 | $ | 11,248,811 | ||||||
December 31, 2012 | ||||||||||||||
Net finance receivables: | ||||||||||||||
60-89 days past due | $ | 21,683 | $ | 99,472 | $ | 2,107 | $ | 123,262 | ||||||
90-119 days past due | 17,538 | 73,712 | 1,416 | 92,666 | ||||||||||
120-149 days past due | 14,050 | 57,985 | 1,171 | 73,206 | ||||||||||
150-179 days past due | 9,613 | 45,326 | 743 | 55,682 | ||||||||||
180 days or more past due | 12,107 | 382,227 | 331 | 394,665 | ||||||||||
Total delinquent finance receivables | 74,991 | 658,722 | 5,768 | 739,481 | ||||||||||
Current | 2,534,960 | 7,983,413 | 197,392 | 10,715,765 | ||||||||||
30-59 days past due | 39,781 | 196,503 | 5,197 | 241,481 | ||||||||||
Total | $ | 2,649,732 | $ | 8,838,638 | $ | 208,357 | $ | 11,696,727 | ||||||
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 nonperforming, we consider them to be at increased risk for credit loss. | ||||||||||||||
Our performing and nonperforming net finance receivables by type were as follows: | ||||||||||||||
Personal | Real | Retail | ||||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
September 30, 2013 | ||||||||||||||
Performing | $ | 2,971,981 | $ | 7,598,796 | $ | 115,204 | $ | 10,685,981 | ||||||
Nonperforming | 47,825 | 512,321 | 2,684 | 562,830 | ||||||||||
Total | $ | 3,019,806 | $ | 8,111,117 | $ | 117,888 | $ | 11,248,811 | ||||||
December 31, 2012 | ||||||||||||||
Performing | $ | 2,596,424 | $ | 8,279,388 | $ | 204,696 | $ | 11,080,508 | ||||||
Nonperforming | 53,308 | 559,250 | 3,661 | 616,219 | ||||||||||
Total | $ | 2,649,732 | $ | 8,838,638 | $ | 208,357 | $ | 11,696,727 | ||||||
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 to their fair value on November 30, 2010. No finance receivables have been added to these pools subsequent to November 30, 2010. | ||||||||||||||
We include the carrying amount (which initially was the fair value) 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. | ||||||||||||||
Information regarding these purchased credit impaired finance receivables was as follows: | ||||||||||||||
September 30, | December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | ||||||||||||
Carrying amount, net of allowance | $ | 1,282,683 | $ | 1,373,792 | ||||||||||
Outstanding balance | $ | 1,825,077 | $ | 1,957,260 | ||||||||||
Allowance for purchased credit impaired finance receivable losses | $ | 46,003 | $ | 16,973 | ||||||||||
The allowance for purchased credit impaired finance receivable losses at September 30, 2013 and December 31, 2012 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 were as follows: | ||||||||||||||
At or for the | At or for the | At or for the | At or for the | |||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 844,018 | $ | 389,461 | $ | 624,879 | $ | 463,960 | ||||||
Accretion | (32,041 | ) | (34,768 | ) | (97,036 | ) | (96,697 | ) | ||||||
Reclassifications from nonaccretable difference (a) | 2,740 | 313,864 | 303,328 | 313,864 | ||||||||||
Disposals of finance receivables (b) | (8,337 | ) | (6,973 | ) | (24,791 | ) | (19,543 | ) | ||||||
Balance at end of period | $ | 806,380 | $ | 661,584 | $ | 806,380 | $ | 661,584 | ||||||
(a) Reclassifications from nonaccretable difference for the three and nine months ended September 30, 2013 represent the increases in accretion resulting from higher estimated undiscounted cash flows. Reclassifications from nonaccretable difference for the three and nine months ended September 30, 2012 represent the increase in accretion related to an increase in the pool yield. | ||||||||||||||
(b) Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged-off during the period. | ||||||||||||||
TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES | ||||||||||||||
Information regarding TDR finance receivables were as follows: | ||||||||||||||
Real Estate | ||||||||||||||
(dollars in thousands) | Loans | |||||||||||||
September 30, 2013 | ||||||||||||||
TDR gross finance receivables | $ | 1,260,429 | ||||||||||||
TDR net finance receivables | $ | 1,264,971 | ||||||||||||
Allowance for TDR finance receivable losses | $ | 161,464 | ||||||||||||
December 31, 2012 | ||||||||||||||
TDR gross finance receivables | $ | 802,495 | ||||||||||||
TDR net finance receivables | $ | 806,420 | ||||||||||||
Allowance for TDR finance receivable losses | $ | 92,723 | ||||||||||||
We have no commitments to lend additional funds on our TDR finance receivables. | ||||||||||||||
TDR average net receivables and finance charges recognized on TDR finance receivables were as follows: | ||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real Estate Loans | ||||||||||||||
TDR average net receivables | $ | 1,224,413 | $ | 590,024 | $ | 1,072,115 | $ | 451,248 | ||||||
TDR finance charges recognized | $ | 17,109 | $ | 8,572 | $ | 45,791 | $ | 18,470 | ||||||
Information regarding the new volume of the TDR finance receivables was as follows: | ||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real Estate Loans | ||||||||||||||
Number of TDR accounts | 1,618 | 1,634 | 5,919 | 3,610 | ||||||||||
Pre-modification TDR net finance receivables | $ | 131,969 | $ | 154,492 | $ | 467,362 | $ | 367,858 | ||||||
Post-modification TDR net finance receivables | $ | 139,830 | $ | 152,073 | $ | 488,577 | $ | 370,031 | ||||||
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 were as follows: | ||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real Estate Loans | ||||||||||||||
Number of TDR accounts | 377 | 126 | 796 | 408 | ||||||||||
TDR net finance receivables* | $ | 26,030 | $ | 12,416 | $ | 59,719 | $ | 47,418 | ||||||
* 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, 2013 | ||||||||||||||
Allowance for Finance Receivable Losses | ' | |||||||||||||
Allowance for Finance Receivable Losses | ' | |||||||||||||
3. Allowance for Finance Receivable Losses | ||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type were as follows: | ||||||||||||||
Personal | Real | Retail | Consolidated | |||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||
Balance at beginning of period | $ | 60,250 | $ | 184,440 | $ | 920 | $ | 245,610 | ||||||
Provision for finance receivable losses (a) | 39,685 | 55,886 | 1,843 | 97,414 | ||||||||||
Charge-offs | (32,527 | ) | (32,733 | ) | (2,032 | ) | (67,292 | ) | ||||||
Recoveries | 2,135 | 1,324 | 294 | 3,753 | ||||||||||
Balance at end of period | $ | 69,543 | $ | 208,917 | $ | 1,025 | $ | 279,485 | ||||||
Three Months Ended September 30, 2012 | ||||||||||||||
Balance at beginning of period | $ | 41,431 | $ | 49,051 | $ | 1,191 | $ | 91,673 | ||||||
Provision for finance receivable losses (a) | 29,010 | 59,308 | 2,518 | 90,836 | ||||||||||
Charge-offs | (26,797 | ) | (31,432 | ) | (4,049 | ) | (62,278 | ) | ||||||
Recoveries | 7,865 | 2,545 | 2,427 | 12,837 | ||||||||||
Balance at end of period | $ | 51,509 | $ | 79,472 | $ | 2,087 | $ | 133,068 | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||||
Balance at beginning of period | $ | 66,580 | $ | 111,296 | $ | 2,260 | $ | 180,136 | ||||||
Provision for finance receivable losses (a) | 64,282 | 202,094 | (4,234 | ) | 262,142 | |||||||||
Charge-offs (b) | (106,161 | ) | (120,061 | ) | (7,338 | ) | (233,560 | ) | ||||||
Recoveries (c) | 44,842 | 15,588 | 10,337 | 70,767 | ||||||||||
Balance at end of period | $ | 69,543 | $ | 208,917 | $ | 1,025 | $ | 279,485 | ||||||
Nine Months Ended September 30, 2012 | ||||||||||||||
Balance at beginning of period | $ | 39,522 | $ | 31,471 | $ | 1,007 | $ | 72,000 | ||||||
Provision for finance receivable losses (a) | 69,731 | 148,509 | 9,190 | 227,430 | ||||||||||
Charge-offs | (82,035 | ) | (107,496 | ) | (15,974 | ) | (205,505 | ) | ||||||
Recoveries | 25,398 | 6,988 | 8,058 | 40,444 | ||||||||||
Transfers to finance receivables held for sale (d) | (1,107 | ) | - | (194 | ) | (1,301 | ) | |||||||
Balance at end of period | $ | 51,509 | $ | 79,472 | $ | 2,087 | $ | 133,068 | ||||||
(a) Components of provision for finance receivable losses on our real estate loans were as follows: | ||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real estate loans | ||||||||||||||
Provision for finance receivable losses | ||||||||||||||
Non-credit impaired finance receivables | $ | 17,808 | $ | 19,501 | $ | 62,968 | $ | 69,924 | ||||||
Purchased credit impaired finance receivables | 21,210 | 18,015 | 60,511 | 37,365 | ||||||||||
TDR finance receivables | 16,868 | 21,792 | 78,615 | 41,220 | ||||||||||
Total | $ | 55,886 | $ | 59,308 | $ | 202,094 | $ | 148,509 | ||||||
(b) Effective March 31, 2013, we charge off to the allowance for finance receivable losses for personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses for 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. | ||||||||||||||
(c) Recoveries during the nine months ended September 30, 2013 included $41.2 million ($25.4 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. | ||||||||||||||
(d) During the nine months ended September 30, 2012, we decreased the allowance for finance receivable losses as a result of the transfers of $77.8 million of finance receivables 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. | ||||||||||||||
Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $87.8 million at September 30, 2013 and $14.7 million at December 31, 2012. The allowance for finance receivable losses related to our securitized finance receivables at December 31, 2012 was previously incorrectly understated by $4.7 million and has been revised to include the allowance for finance receivable losses on our securitized purchased credit impaired finance receivables. See Note 9 for further discussion regarding our securitization transactions. | ||||||||||||||
The carrying value charged-off for purchased credit impaired loans was as follows: | ||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real estate loans | ||||||||||||||
Charged-off against provision for finance receivable losses: | ||||||||||||||
Purchased credit impaired finance receivables * | $ | 9,873 | $ | 9,362 | $ | 31,501 | $ | 28,712 | ||||||
* 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: | ||||||||||||||
Personal | Real | Retail | ||||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
September 30, 2013 | ||||||||||||||
Allowance for finance receivable losses for finance receivables: | ||||||||||||||
Collectively evaluated for impairment | $ | 69,543 | $ | 1,450 | $ | 1,025 | $ | 72,018 | ||||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | - | 46,003 | - | 46,003 | ||||||||||
Individually evaluated for impairment (TDR finance receivables) | - | 161,464 | - | 161,464 | ||||||||||
Total | $ | 69,543 | $ | 208,917 | $ | 1,025 | $ | 279,485 | ||||||
Finance receivables: | ||||||||||||||
Collectively evaluated for impairment | $ | 3,019,806 | $ | 5,517,460 | $ | 117,888 | $ | 8,655,154 | ||||||
Purchased credit impaired finance receivables | - | 1,328,686 | - | 1,328,686 | ||||||||||
TDR finance receivables | - | 1,264,971 | - | 1,264,971 | ||||||||||
Total | $ | 3,019,806 | $ | 8,111,117 | $ | 117,888 | $ | 11,248,811 | ||||||
December 31, 2012 | ||||||||||||||
Allowance for finance receivable losses for finance receivables: | ||||||||||||||
Collectively evaluated for impairment | $ | 66,580 | $ | 1,600 | $ | 2,260 | $ | 70,440 | ||||||
Purchased credit impaired finance receivables | - | 16,973 | - | 16,973 | ||||||||||
TDR finance receivables | - | 92,723 | - | 92,723 | ||||||||||
Total | $ | 66,580 | $ | 111,296 | $ | 2,260 | $ | 180,136 | ||||||
Finance receivables: | ||||||||||||||
Collectively evaluated for impairment | $ | 2,649,732 | $ | 6,641,453 | $ | 208,357 | $ | 9,499,542 | ||||||
Purchased credit impaired finance receivables | - | 1,390,765 | - | 1,390,765 | ||||||||||
TDR finance receivables | - | 806,420 | - | 806,420 | ||||||||||
Total | $ | 2,649,732 | $ | 8,838,638 | $ | 208,357 | $ | 11,696,727 |
Finance_Receivables_Held_for_S
Finance Receivables Held for Sale | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Finance Receivables Held for Sale | ' | |||||||||||||
Finance Receivables Held for Sale | ' | |||||||||||||
4. Finance Receivables Held for Sale | ||||||||||||||
During the nine months ended September 30, 2013, we did not have any transfer activity between finance receivables held for investment to finance receivables held for sale. | ||||||||||||||
During the first and third quarters of 2012, we transferred $77.8 million and $103.1 million, respectively, of finance receivables 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 marked these loans to the lower of cost or fair value at the time of transfer and subsequently recorded additional gains in other revenues – other at the time of sale resulting in net gains for the three and nine months ended September 30, 2012 of $6.5 million and $4.5 million, respectively. During the three and nine months ended September 30, 2012, we sold finance receivables held for sale totaling $123.0 million and $171.0 million, respectively. | ||||||||||||||
We repurchased two loans for $0.3 million during the three months ended September 30, 2013, compared to five loans for $1.0 million repurchased during the three months ended September 30, 2012. We repurchased 19 loans for $2.8 million during the nine months ended September 30, 2013, compared to six loans for $1.1 million during the nine months ended September 30, 2012. In each period, we repurchased the loans because such loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At September 30, 2013, there were no material unresolved recourse requests. | ||||||||||||||
The activity in our reserve for sales recourse obligations was as follows: | ||||||||||||||
At or for the | At or for the | At or for the | At or for the | |||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 4,766 | $ | 1,765 | $ | 4,863 | $ | 1,648 | ||||||
Provision for recourse obligations | - | - | 322 | 117 | ||||||||||
Recourse losses | (42 | ) | (25 | ) | (461 | ) | (25 | ) | ||||||
Balance at end of period | $ | 4,724 | $ | 1,740 | $ | 4,724 | $ | 1,740 |
Investment_Securities
Investment Securities | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||
5. Investment Securities | ||||||||||||||||||||
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale, were as follows: | ||||||||||||||||||||
Cost/ | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
(dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Fixed maturity investment securities: | ||||||||||||||||||||
Bonds: | ||||||||||||||||||||
U.S. government and government sponsored entities | $ | 73,925 | $ | 1,027 | $ | (169 | ) | $ | 74,783 | |||||||||||
Obligations of states, municipalities, and political subdivisions | 92,920 | 2,215 | (161 | ) | 94,974 | |||||||||||||||
Corporate debt | 218,569 | 6,342 | (2,271 | ) | 222,640 | |||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||
Residential mortgage-backed securities (“RMBS”) | 134,112 | 6,481 | (1,457 | ) | 139,136 | |||||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 19,215 | 1,205 | (206 | ) | 20,214 | |||||||||||||||
Collateralized debt obligations (“CDO”)/ Asset-backed securities (“ABS”) | 12,884 | 677 | (22 | ) | 13,539 | |||||||||||||||
Total | 551,625 | 17,947 | (4,286 | ) | 565,286 | |||||||||||||||
Other long-term investments* | 1,395 | 46 | (66 | ) | 1,375 | |||||||||||||||
Common stocks | 964 | - | (14 | ) | 950 | |||||||||||||||
Total | $ | 553,984 | $ | 17,993 | $ | (4,366 | ) | $ | 567,611 | |||||||||||
December 31, 2012 | ||||||||||||||||||||
Fixed maturity investment securities: | ||||||||||||||||||||
Bonds: | ||||||||||||||||||||
U.S. government and government sponsored entities | $ | 33,955 | $ | 2,487 | $ | - | $ | 36,442 | ||||||||||||
Obligations of states, municipalities, and political subdivisions | 135,476 | 4,997 | (249 | ) | 140,224 | |||||||||||||||
Corporate debt | 278,555 | 10,514 | (1,380 | ) | 287,689 | |||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||
RMBS | 164,308 | 7,948 | (47 | ) | 172,209 | |||||||||||||||
CMBS | 11,964 | 1,152 | (64 | ) | 13,052 | |||||||||||||||
CDO/ABS | 15,358 | 1,214 | (4 | ) | 16,568 | |||||||||||||||
Total | 639,616 | 28,312 | (1,744 | ) | 666,184 | |||||||||||||||
Other long-term investments* | 1,404 | - | (24 | ) | 1,380 | |||||||||||||||
Common stocks | 974 | 30 | (29 | ) | 975 | |||||||||||||||
Total | $ | 641,994 | $ | 28,342 | $ | (1,797 | ) | $ | 668,539 | |||||||||||
* Excludes interest in a limited partnership that we account for using the equity method ($0.6 million at September 30, 2013 and December 31, 2012). | ||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, we had no investment 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 | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(dollars in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Bonds: | ||||||||||||||||||||
U.S. government and government sponsored entities | $ | 19,968 | $ | (169 | ) | $ | - | $ | - | $ | 19,968 | $ | (169 | ) | ||||||
Obligations of states, municipalities, and political subdivisions | 2,603 | (161 | ) | - | - | 2,603 | (161 | ) | ||||||||||||
Corporate debt | 42,919 | (1,867 | ) | 8,712 | (404 | ) | 51,631 | (2,271 | ) | |||||||||||
RMBS | 39,911 | (1,457 | ) | 31 | - | 39,942 | (1,457 | ) | ||||||||||||
CMBS | 7,810 | (206 | ) | - | 7,810 | (206 | ) | |||||||||||||
CDO/ABS | 2,716 | (22 | ) | - | 2,716 | (22 | ) | |||||||||||||
Total | 115,927 | (3,882 | ) | 8,743 | (404 | ) | 124,670 | (4,286 | ) | |||||||||||
Other long-term investments | 135 | (66 | ) | - | - | 135 | (66 | ) | ||||||||||||
Common stocks | 100 | (14 | ) | - | - | 100 | (14 | ) | ||||||||||||
Total | $ | 116,162 | $ | (3,962 | ) | $ | 8,743 | $ | (404 | ) | $ | 124,905 | $ | (4,366 | ) | |||||
December 31, 2012 | ||||||||||||||||||||
Bonds: | ||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | $ | 1,569 | $ | (4 | ) | $ | 9,646 | $ | (245 | ) | $ | 11,215 | $ | (249 | ) | |||||
Corporate debt | 23,673 | (510 | ) | 49,690 | (870 | ) | 73,363 | (1,380 | ) | |||||||||||
RMBS | 29,101 | (46 | ) | 46 | (1 | ) | 29,147 | (47 | ) | |||||||||||
CMBS | 712 | (31 | ) | 4,913 | (33 | ) | 5,625 | (64 | ) | |||||||||||
CDO/ABS | 792 | (4 | ) | - | - | 792 | (4 | ) | ||||||||||||
Total | 55,847 | (595 | ) | 64,295 | (1,149 | ) | 120,142 | (1,744 | ) | |||||||||||
Other long-term investments | 178 | (23 | ) | 8 | (1 | ) | 186 | (24 | ) | |||||||||||
Common stocks | - | - | 85 | (29 | ) | 85 | (29 | ) | ||||||||||||
Total | $ | 56,025 | $ | (618 | ) | $ | 64,388 | $ | (1,179 | ) | $ | 120,413 | $ | (1,797 | ) | |||||
We continue to monitor unrealized loss positions for potential impairments. During the nine months ended September 30, 2013, we recognized other-than-temporary impairments on RMBS totaling $26 thousand, which are recorded as an offset to investment revenues. | ||||||||||||||||||||
Components of the other-than-temporary impairment charges on investment securities were as follows: | ||||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Total other-than-temporary impairment losses | $ | - | $ | (254 | ) | $ | (26 | ) | $ | (906 | ) | |||||||||
Portion of loss recognized in accumulated other comprehensive loss | - | - | - | - | ||||||||||||||||
Net impairment losses recognized in net loss | $ | - | $ | (254 | ) | $ | (26 | ) | $ | (906 | ) | |||||||||
Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired investment securities were as follows: | ||||||||||||||||||||
At or for the | At or for the | At or for the | At or for the | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Balance at beginning of period | $ | 1,523 | $ | 4,377 | $ | 1,650 | $ | 3,725 | ||||||||||||
Additions: | ||||||||||||||||||||
Due to other-than-temporary impairments: | ||||||||||||||||||||
Impairment previously recognized | - | 254 | 26 | 906 | ||||||||||||||||
Reductions: | ||||||||||||||||||||
Realized due to dispositions with no prior intention to sell | - | (2,962 | ) | (153 | ) | (2,962 | ) | |||||||||||||
Balance at end of period | $ | 1,523 | $ | 1,669 | $ | 1,523 | $ | 1,669 | ||||||||||||
The fair values of investment securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains (losses) were as follows: | ||||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Fair value | $ | 37,160 | $ | 33,880 | $ | 142,693 | $ | 65,401 | ||||||||||||
Realized gains | $ | 229 | $ | 564 | $ | 2,452 | $ | 1,054 | ||||||||||||
Realized losses | (219 | ) | (910 | ) | (390 | ) | (1,245 | ) | ||||||||||||
Net realized gains (losses) | $ | 10 | $ | (346 | ) | $ | 2,062 | $ | (191 | ) | ||||||||||
Contractual maturities of fixed-maturity investment securities at September 30, 2013 were as follows: | ||||||||||||||||||||
(dollars in thousands) | Fair | Amortized | ||||||||||||||||||
September 30, 2013 | Value | Cost | ||||||||||||||||||
Fixed maturities, excluding mortgage-backed securities: | ||||||||||||||||||||
Due in 1 year or less | $ | 15,307 | $ | 15,240 | ||||||||||||||||
Due after 1 year through 5 years | 192,759 | 187,852 | ||||||||||||||||||
Due after 5 years through 10 years | 131,286 | 130,914 | ||||||||||||||||||
Due after 10 years | 53,045 | 51,408 | ||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 172,889 | 166,211 | ||||||||||||||||||
Total | $ | 565,286 | $ | 551,625 | ||||||||||||||||
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. |
Transactions_with_Affiliates_o
Transactions with Affiliates of Fortress or AIG | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Transactions with Affiliates of Fortress or AIG | ' | |||||||||||||
Transactions with Affiliates of Fortress or AIG | ' | |||||||||||||
6. Transactions with Affiliates of Fortress or AIG | ||||||||||||||
SECURED TERM LOAN | ||||||||||||||
Springleaf Financial Funding Company (“SFFC”), our wholly owned subsidiary, is party to a six-year secured term loan pursuant to a credit agreement among SFFC, SFC, and most of the consumer finance operating subsidiaries of SFC (collectively, the “Subsidiary Guarantors”), and a syndicate of lenders, various agents, and Bank of America, N.A, as administrative agent. | ||||||||||||||
On September 30, 2013, SFC, SFFC and the Subsidiary Guarantors entered into an incremental facility joinder agreement with Bank of America, N.A., as lender, administrative agent and collateral agent, and established new term loan commitments totaling $750.0 million under the secured term loan (the “New Loan Tranche”). SFFC remained the borrower of the loans made under the New Loan Tranche, and the proceeds of such loans were used to make a voluntary prepayment of the existing secured term loan. The New Loan Tranche is guaranteed by SFC and by the Subsidiary Guarantors, and the New Loan Tranche is secured by the same collateral as, and on a pro rata basis with, the initial loans under the secured term loan. | ||||||||||||||
At September 30, 2013, the outstanding principal amount of the secured term loan totaled $1.3 billion, compared to $3.8 billion at December 31, 2012. Affiliates of Fortress owned or managed lending positions in the syndicate of lenders totaling approximately $12.5 million at September 30, 2013 and $85.0 million at December 31, 2012. | ||||||||||||||
SUBSERVICING AND REFINANCE AGREEMENTS | ||||||||||||||
Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of MorEquity, Inc. (“MorEquity”), our wholly owned subsidiary, and two other subsidiaries (collectively, the “Owners”), including certain securitized real estate loans. 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: | ||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Subservicing fees | $ | 2,132 | $ | 2,380 | $ | 6,556 | $ | 7,525 | ||||||
Refinancing concessions | $ | - | $ | 216 | $ | 265 | $ | 4,177 | ||||||
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 $0.2 million and $0.8 million for the three and nine months ended September 30, 2013, respectively, compared to $0.3 million and $0.6 million for the three and nine months ended September 30, 2012, 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 $45.9 million at September 30, 2013 and $46.8 million at December 31, 2012. | ||||||||||||||
DERIVATIVES | ||||||||||||||
At December 31, 2012, our derivative financial instrument was with AIG Financial Products Corp. (“AIGFP”), a subsidiary of AIG. In July 2012, SFI posted $60.0 million of cash collateral with AIGFP as security for SFC’s two remaining Euro swap positions with AIGFP and agreed to act as guarantor for the swap positions. In August 2012, one of the swap positions was terminated and the cash collateral was reduced by $20.0 million. Cash collateral with AIGFP totaled $40.0 million at December 31, 2012. | ||||||||||||||
On August 5, 2013, we terminated our remaining cross currency interest rate swap agreement with AIGFP and recorded a loss of $1.9 million in other revenues – other. The notional amount of this swap agreement totaled $416.6 million at August 5, 2013. Immediately following this termination, we had no derivative financial instruments. As a result of this termination, AIGFP returned the cash collateral of $40.0 million to SFI. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
7. 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 2013 and does not expect to demand payment from SFI in 2013. The note receivable from parent totaled $538.0 million at September 30, 2013 and December 31, 2012. Interest receivable on this note totaled $1.4 million at September 30, 2013 and $1.5 million at December 31, 2012. The interest rate for the principal balance is the prime rate. Interest revenue on notes receivable from parent totaled $4.4 million and $14.4 million for the three and nine months ended September 30, 2013, respectively. Interest revenue on notes receivable from parent totaled $4.4 million and $13.1 million for the three and nine months ended September 30, 2012, respectively. | |
Receivables from Parent and Affiliates | |
At September 30, 2013 and December 31, 2012, receivables from our parent and affiliates totaled $17.7 million and $16.2 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. The receivables from our parent and affiliates also include interest receivable on SFC’s note receivable from SFI discussed above. | |
Promissory Note | |
Pursuant to a promissory note dated April 1, 2013, between SFC and SpringCastle Holdings, LLC (“SCH”), a wholly owned subsidiary of Springleaf Acquisition Corporation (“SAC”), SFC advanced $150.0 million to SCH. SAC is a wholly owned subsidiary of SFI. The note was payable in full on December 3, 2024, and was prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance was 7.00%. SCH used the advance to fund, in part, its 47% equity interest in a newly formed joint venture with NRZ Consumer LLC, previously an indirect subsidiary of Newcastle Investment Corp. (30% equity interest) and BTO Willow Holdings, L.P. (23% equity interest), which completed a loan portfolio acquisition on April 1, 2013 for a purchase price of $3.0 billion, at which time the portfolio consisted of over 415,000 finance receivable accounts with a $3.9 billion UPB. On May 15, 2013, Newcastle Investment Corp. completed the spinoff of New Residential Investment Corp. and its subsidiaries, including NRZ Consumer LLC. Newcastle Investment Corp. and New Residential Investment Corp. are managed by an affiliate of Fortress. The note was paid in full on May 16, 2013. Interest revenue on this promissory note from SCH totaled $1.3 million for the nine months ended September 30, 2013. | |
Intercompany Demand Note | |
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, 2013, SFI had not drawn any funds under this note. | |
CASH COLLATERAL | |
In August 2012, Springleaf Financial Services of South Carolina, Inc. (“SFSSC”), a subsidiary of SFC, and SFI entered into a Reimbursement Agreement (the “Reimbursement Agreement”) and a related fee agreement (the “Fee Agreement”) whereby SFI agreed to post $25.0 million of cash collateral on behalf of SFSSC in connection with a judgment entered against SFSSC, subject to SFSSC’s agreement to repay the collateral in full in the event it was applied to the judgment. SFSSC agreed to settle the litigation in late August 2012. | |
In December 2012, SFSSC and SFI amended the Reimbursement Agreement and the Fee Agreement to provide that the collateral could be applied toward the settlement and that SFI would pay up to an additional $11.0 million toward the settlement on behalf of SFSSC, subject to SFSSC’s agreement to repay such amounts in full and to pay a fee equal to an annual rate of 8.00% of the average monthly amount paid by SFI toward the settlement until fully repaid. Subsequently, SFI paid an additional $5.8 million in December 2012, on SFSSC’s behalf, to satisfy the remaining portion of the settlement. At December 31, 2012, the payable to SFI totaled $30.8 million, and interest payable to SFI totaled $0.1 million. | |
In February 2013, SFI paid an additional $3.1 million, on SFSSC’s behalf, towards the payment of unclaimed funds to South Carolina charities. SFSSC fully repaid SFI for the cash collateral in late March 2013 and paid SFI $0.6 million of fees under the amended Fee Agreement during the first quarter of 2013. During the three and nine months ended September 30, 2012, SFSSC paid SFI $0.2 million of collateral fees. | |
CAPITAL CONTRIBUTIONS | |
On each of January 10, 2012, July 11, 2012, January 11, 2013, and July 10, 2013, SFC received capital contributions from SFI of $10.5 million to satisfy SFC’s hybrid debt semi-annual interest payments due in January 2012, July 2012, January 2013, and July 2013, respectively. | |
DERIVATIVES | |
As discussed in Note 6, SFI posted $60.0 million of cash collateral with AIGFP as security for SFC’s two remaining Euro swap positions with AIGFP in July 2012, and in August 2012, one of the swap positions was terminated and the cash collateral was reduced by $20.0 million. 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. During the three and nine months ended September 30, 2013, SFC paid SFI $0.7 million and $2.7 million, respectively, of collateral fees. During the three and nine months ended September 30, 2012, SFC paid SFI $5.9 million of collateral fees. | |
INTERCOMPANY AGREEMENTS | |
On December 24, 2012, Springleaf General Services Corporation (“SGSC”), a subsidiary of SFI, entered into the following intercompany agreements with Springleaf Finance Management Corporation (“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, 2013, SFMC recorded $34.8 million and $101.7 million, respectively, of service fee expenses, which are included in other operating expenses. Services fees payable to SGSC totaled $5.7 million at September 30, 2013 and $1.9 million at December 31, 2012. | |
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, 2013, SFMC recorded $1.6 million and $4.6 million, respectively, of license fees, which are included as a contra expense to other operating expenses. | |
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, 2013, 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. |
Longterm_Debt
Long-term Debt | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Long-term Debt | ' | ||||||||||||||||||||||
Long-term Debt | ' | ||||||||||||||||||||||
8. Long-term Debt | |||||||||||||||||||||||
Principal maturities of long-term debt (excluding projected securitization repayments by period) by type of debt at September 30, 2013 were as follows: | |||||||||||||||||||||||
Medium | Euro | Secured | Junior | ||||||||||||||||||||
Retail | Term | Denominated | Term | Subordinated | |||||||||||||||||||
(dollars in thousands) | Notes | Notes (a) | Note (b) | Loan (c) | Securitizations | Debt | Total | ||||||||||||||||
Interest rates (d) | 4.95%-7.50% | 5.40%-8.25% | 4.125 | % | 4.75%-5.50% | 1.27%-6.00% | 6 | % | |||||||||||||||
Fourth quarter 2013 | $ | 2,903 | $ | - | $ | 416,637 | $ | - | $ | - | $ | - | $ | 419,540 | |||||||||
First quarter 2014 | 1,115 | - | - | - | - | - | 1,115 | ||||||||||||||||
Second quarter 2014 | 10,892 | - | - | - | - | - | 10,892 | ||||||||||||||||
Third quarter 2014 | 8,569 | - | - | - | - | - | 8,569 | ||||||||||||||||
Remainder of 2014 | 335,486 | - | - | - | - | - | 335,486 | ||||||||||||||||
2015 | 47,254 | 750,000 | - | - | - | - | 797,254 | ||||||||||||||||
2016 | - | 375,000 | - | - | - | - | 375,000 | ||||||||||||||||
2017 | - | 2,416,337 | - | 550,000 | - | - | 2,966,337 | ||||||||||||||||
2018-2067 | - | 1,250,000 | - | 750,000 | - | 350,000 | 2,350,000 | ||||||||||||||||
Securitizations (e) | - | - | - | - | 5,318,068 | - | 5,318,068 | ||||||||||||||||
Total principal maturities | $ | 406,219 | $ | 4,791,337 | $ | 416,637 | $ | 1,300,000 | $ | 5,318,068 | $ | 350,000 | $ | 12,582,261 | |||||||||
Total carrying amount | $ | 382,061 | $ | 4,148,608 | $ | 432,245 | $ | 1,303,739 | $ | 5,302,555 | $ | 171,565 | $ | 11,740,773 | |||||||||
(a) Medium-term notes at September 30, 2013 included aggregate principal amounts of $300 million of Senior Notes issued in May 2013 and $950 million of Senior Notes issued in September 2013 of which $700 million were exchanged for medium-term notes due 2017. | |||||||||||||||||||||||
(b) Euro denominated note includes a €323.4 million note, shown here at the U.S. dollar equivalent at time of issuance. | |||||||||||||||||||||||
(c) Our secured term loan is issued by wholly owned Company subsidiaries and guaranteed by SFC and the Subsidiary Guarantors. | |||||||||||||||||||||||
(d) The interest rates shown are the range of contractual rates in effect at September 30, 2013. | |||||||||||||||||||||||
(e) Securitizations are not included in above maturities by period due to their variable monthly repayments. | |||||||||||||||||||||||
SFFC, our wholly owned subsidiary, is the borrower of the secured term loan that is guaranteed by SFC and by the Subsidiary Guarantors. In addition, our other operating subsidiaries that from time to time meet certain criteria will be required to become Subsidiary Guarantors. The secured term loan is secured by a first priority pledge of the stock of SFFC that was limited at the transaction date, in accordance with existing SFC debt agreements, to $167.9 million. | |||||||||||||||||||||||
SFFC used a portion of the proceeds from the secured term loan to make new intercompany loans to the Subsidiary Guarantors. The intercompany loans are secured by a first priority security interest in eligible finance receivables, according to pre-determined eligibility requirements and in accordance with a borrowing base formula. The Subsidiary Guarantors used proceeds of the loans to pay down their intercompany loans from SFC. SFC used the payments from Subsidiary Guarantors to, among other things, repay debt and fund operations. | |||||||||||||||||||||||
Immediately prior to the 2013-1 securitization transaction discussed in Note 9, the real estate loans to be securitized comprised a portion of the finance receivables pledged as collateral to support the outstanding principal amount under our secured term loan. Upon completion of the securitization transaction, these real estate loans were released from the collateral pledged to support our secured term loan and the Subsidiary Guarantors elected not to pledge new finance receivables as collateral to replace the real estate loans sold in the securitization transaction. The voluntary reduction of the collateral pledged required SFFC to make a mandatory prepayment of a portion of the outstanding principal (plus accrued interest). As a result, SFFC made a mandatory prepayment on April 11, 2013, without penalty or premium, of $714.9 million of outstanding principal (plus accrued interest). | |||||||||||||||||||||||
On each of May 15, 2013 and May 30, 2013, SFFC made additional prepayments, without penalty or premium, of $500.0 million of outstanding principal (plus accrued interest) on the secured term loan. On July 29, 2013 and September 30, 2013, SFFC made prepayments, without penalty or premium, of $235.1 million and $1.25 billion, respectively, of outstanding principal (plus accrued interest) on the secured term loan. | |||||||||||||||||||||||
In addition, on September 30, 2013, SFC, SFFC and the Subsidiary Guarantors entered into the New Loan Tranche, which consisted of new term loan commitments totaling $750.0 million under the secured term loan pursuant to the incremental facility joinder agreement to the secured term loan. SFFC remained the borrower of the loans made under the New Loan Tranche, and the proceeds of such loans were used to fund the $1.25 billion prepayment of existing secured term loans due 2017. The New Loan Tranche is guaranteed by SFC and by the Subsidiary Guarantors, and the New Loan Tranche is secured by the same collateral as, and on a pro rata basis with, the initial loans under the secured term loan. | |||||||||||||||||||||||
In connection with our liability management efforts, we or our affiliates from time to time have purchased, and 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. |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Variable Interest Entities | ' | |||||||
Variable Interest Entities | ' | |||||||
9. 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 financial statements and are accounted for as secured borrowings. | ||||||||
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. In instances where servicing is performed by parties other than SFC, this ability arises from SFC’s prescription of detailed servicing standards and procedures that the servicer must observe (and which can be modified only with our consent), and from our mandatory involvement in certain loan workouts and disposals of defaulted loans or related collateral. Our retained subordinated notes and residual interest trust certificates expose us to potentially significant losses and potentially significant returns. | ||||||||
The asset-backed and mortgage-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: | ||||||||
September 30, | December 31, | |||||||
(dollars in thousands) | 2013 | 2012 | ||||||
Assets | ||||||||
Finance receivables: | ||||||||
Personal loans | $ | 1,696,019 | $ | - | ||||
Real estate loans | 5,348,642 | 3,977,412 | ||||||
Allowance for finance receivable losses | 87,784 | 14,690 | ||||||
Restricted cash | 332,066 | 104,853 | ||||||
Liabilities | ||||||||
Long-term debt | $ | 5,302,555 | $ | 2,978,338 | ||||
Consumer Loan Securitizations | ||||||||
2013-A Securitization. On February 19, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $567.9 million of notes backed by personal loans held by Springleaf Funding Trust 2013-A (the “2013-A Trust”), at a 2.83% weighted average yield. We sold the asset-backed notes for $567.5 million, after the price discount but before expenses and a $6.6 million interest reserve requirement. We initially retained $36.4 million of the 2013-A Trust’s subordinate asset-backed notes. | ||||||||
2013-B Securitization. On June 19, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $256.2 million of notes backed by personal loans held by Springleaf Funding Trust 2013-B (the “2013-B Trust”), at a 4.11% weighted average yield. We sold the asset-backed notes for $255.4 million, after the price discount but before expenses and a $4.4 million interest reserve requirement. We initially retained $114.0 million of the 2013-B Trust’s senior asset-backed notes and $29.8 million of the 2013-B Trust’s subordinate asset-backed notes. | ||||||||
2013-BAC Securitization. On September 25, 2013, we completed a private securitization transaction in which Springleaf Funding Trust 2013-BAC (the “2013-BAC Trust”), a wholly owned special purpose vehicle, issued $500.0 million of notes backed by an amortizing pool of personal loans acquired from subsidiaries of SFC. We sold the personal loan-backed notes for gross proceeds of $500.0 million. | ||||||||
Midbrook 2013-VFN1 Securitization. On September 26, 2013, we established a private securitization transaction in which Midbrook Funding Trust 2013-VFN1 (the “Midbrook 2013-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 from time to time. No amounts were funded at closing, but may be funded from time to time over a one-year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can 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, will amortize and will be due and payable in full in October 2017. At September 30, 2013, no amounts had been drawn under the notes. | ||||||||
Springleaf 2013-VFN1 Securitization. On September 27, 2013, we established a private securitization transaction in which Springleaf Funding Trust 2013-VFN1 (the “Springleaf 2013-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a two-year period, which may be extended for one year, subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down in whole or in part and then redrawn. Following the two-or three-year funding period, as the case may be, the principal amount of the notes, if any, will amortize and will be due and payable in full in October 2019. At September 30, 2013, no amounts had been drawn under the notes. | ||||||||
Mortgage Loan Securitizations | ||||||||
2013-1 Securitization. On April 10, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $782.5 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-1 (the “2013-1 Trust”), at a 2.85% weighted average yield. We sold the mortgage-backed notes for $782.4 million, after the price discount but before expenses. We initially retained $236.8 million of the 2013-1 Trust’s subordinate mortgage-backed notes. | ||||||||
2013-2 Securitization. On July 9, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $599.4 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-2 (the “2013-2 Trust”), at a 2.88% weighted average yield. We sold the mortgage-backed notes for $590.9 million, after the price discount but before expenses. We initially retained $535.1 million of the 2013-2 Trust’s subordinate mortgage-backed notes. | ||||||||
Sales of Previously Retained Notes | ||||||||
During the nine months ended September 30, 2013, we sold the following previously retained mortgage-backed and asset- backed notes: | ||||||||
· $20.0 million mortgage-backed notes from our 2012-2 securitization and subsequently recorded $20.7 million of additional debt; | ||||||||
· $7.5 million mortgage-backed notes from our 2012-3 securitization and subsequently recorded $7.8 million of additional debt; | ||||||||
· $157.5 million mortgage-backed notes from our 2013-2 securitization and subsequently recorded $148.6 million of additional debt; and | ||||||||
· $114.0 million asset-backed notes from our 2013-B securitization and subsequently recorded $111.6 million of additional debt. | ||||||||
VIE Interest Expense | ||||||||
Other than our retained subordinate and residual interests in the consolidated securitization trusts, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to these VIEs for the three and nine months ended September 30, 2013 totaled $61.6 million and $151.4 million, respectively. Consolidated interest expense related to these VIEs for the three and nine months ended September 30, 2012 totaled $32.7 million and $73.8 million, respectively. | ||||||||
UNCONSOLIDATED VIE | ||||||||
We have established a VIE that holds the junior subordinated debt. We are not the primary beneficiary, and we do not have a variable interest in this VIE. Therefore, we do not consolidate such entity. We had no off-balance sheet exposure to loss associated with this VIE at September 30, 2013 or December 31, 2012. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
10. Derivative Financial Instruments | ||||||||||||||||||||
SFC has used derivative financial instruments in managing the cost of its debt by mitigating its exposures to interest rate and currency risks in conjunction with specific long-term debt issuances and has used them in managing its return on finance receivables held for sale, but is neither a dealer nor a trader in derivative financial instruments. On August 5, 2013, SFC terminated its remaining cross currency interest rate swap agreement with AIGFP, 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. | ||||||||||||||||||||
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. | ||||||||||||||||||||
The fair value of our derivative instrument presented on a gross basis was as follows: | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
(dollars in thousands) | Notional | Derivative | Derivative | Notional | Derivative | Derivative | ||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||
Non-Designated Hedging Instruments | ||||||||||||||||||||
Cross currency interest rate | $ | - | $ | - | $ | - | $ | 416,636 | $ | 26,699 | $ | - | ||||||||
The amount of gain (loss) for cash flow hedges recognized in accumulated other comprehensive income or loss, reclassified from accumulated other comprehensive income or loss into other revenues – other (effective portion) and interest expense (effective portion), and recognized in other revenues – other (ineffective portion) were as follows: | ||||||||||||||||||||
From AOCI(L) (a) to | Recognized | |||||||||||||||||||
Other | in Other | |||||||||||||||||||
Revenues - | Interest | Revenues - | ||||||||||||||||||
(dollars in thousands) | AOCI(L) | Other | Expense | Earnings (b) | Other | |||||||||||||||
Three Months Ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Cross currency interest rate | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Three Months Ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Cross currency interest rate | $ | - | $ | 293 | $ | 899 | $ | 1,192 | $ | - | ||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Cross currency interest rate | $ | - | $ | - | $ | 160 | $ | 160 | $ | - | ||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Cross currency interest rate | $ | -16,987 | $ | -12,453 | $ | 975 | $ | -11,478 | $ | -426 | ||||||||||
(a) Accumulated other comprehensive income (loss). | ||||||||||||||||||||
(b) Represents the total amounts reclassified from accumulated other comprehensive income or loss to other revenues – other and to interest expense for cash flow hedges as disclosed on our condensed consolidated statement of comprehensive income (loss). | ||||||||||||||||||||
We elected to discontinue hedge accounting prospectively on one of our cash flow hedges as of May 2012 and terminated this cross currency interest rate swap agreement in August 2012. We continued to report the gain related to the discontinued and terminated cash flow hedge in accumulated other comprehensive income or loss. In January 2013, we reclassified the remaining $0.2 million of deferred net gain on cash flow hedges from accumulated other comprehensive income or loss to earnings. | ||||||||||||||||||||
The amounts recognized in other revenues – other for non-designated hedging instruments were as follows: | ||||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Non-Designated Hedging Instruments | ||||||||||||||||||||
Cross currency interest rate | $ | 986 | $ | -19,244 | $ | -3,376 | $ | -23,825 | ||||||||||||
Derivative adjustments included in other revenues – other consisted of the following: | ||||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Mark to market gains (losses) | $ | 6,260 | $ | (6,364 | ) | $ | (8,244 | ) | $ | (33,687 | ) | |||||||||
Net interest income | 1,701 | 4,955 | 9,161 | 14,575 | ||||||||||||||||
Credit valuation adjustment gains (losses) | 11 | 211 | 50 | (3,614 | ) | |||||||||||||||
Ineffectiveness losses | - | - | - | (426 | ) | |||||||||||||||
Other | (292 | ) | (1,258 | ) | (292 | ) | (517 | ) | ||||||||||||
Total | $ | 7,680 | $ | (2,456 | ) | $ | 675 | $ | (23,669 | ) | ||||||||||
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. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
11. Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
Changes in accumulated other comprehensive income (loss) were as follows: | |||||||||||||||||
Total | |||||||||||||||||
Accumulated | |||||||||||||||||
Unrealized | Unrealized | Retirement | Foreign | Other | |||||||||||||
Gains (Losses) | Gains (Losses) | Plan | Currency | Comprehensive | |||||||||||||
Investment | Cash Flow | Liabilities | Translation | Income | |||||||||||||
(dollars in thousands) | Securities | Hedges | Adjustments | Adjustments | (Loss) | ||||||||||||
Three Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance at beginning of period | $ | 9,079 | $ | - | $ | 8,120 | $ | 6,221 | $ | 23,420 | |||||||
Other comprehensive loss before reclassifications | (215 | ) | - | - | (2,056 | ) | (2,271 | ) | |||||||||
Reclassification adjustments from accumulated other comprehensive income | (6 | ) | - | - | - | (6 | ) | ||||||||||
Balance at end of period | $ | 8,858 | $ | - | $ | 8,120 | $ | 4,165 | $ | 21,143 | |||||||
Three Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Balance at beginning of period | $ | 12,854 | $ | 1,511 | $ | (21,828 | ) | $ | 1,365 | $ | (6,098 | ) | |||||
Other comprehensive income before reclassifications | 2,510 | - | - | 3,067 | 5,577 | ||||||||||||
Reclassification adjustments from accumulated other comprehensive income | 390 | (774 | ) | - | - | (384 | ) | ||||||||||
Balance at end of period | $ | 15,754 | $ | 737 | $ | (21,828 | ) | $ | 4,432 | $ | (905 | ) | |||||
Nine Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance at beginning of period | $ | 17,255 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 29,606 | |||||||
Other comprehensive income (loss) before reclassifications | (7,074 | ) | - | - | 38 | (7,036 | ) | ||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1,323 | ) | (104 | ) | - | - | (1,427 | ) | |||||||||
Balance at end of period | $ | 8,858 | $ | - | $ | 8,120 | $ | 4,165 | $ | 21,143 | |||||||
Nine Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Balance at beginning of period | $ | 5,213 | $ | 4,318 | $ | (35,221 | ) | $ | 152 | $ | (25,538 | ) | |||||
Other comprehensive income (loss) before reclassifications | 9,918 | (11,042 | ) | 13,393 | 4,280 | 16,549 | |||||||||||
Reclassification adjustments from accumulated other comprehensive income | 623 | 7,461 | - | - | 8,084 | ||||||||||||
Balance at end of period | $ | 15,754 | $ | 737 | $ | (21,828 | ) | $ | 4,432 | $ | (905 | ) | |||||
Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows: | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Unrealized gains (losses) on investment securities: | |||||||||||||||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | $ | 10 | $ | (601 | ) | $ | 2,036 | $ | (959 | ) | |||||||
Income tax effect | (4 | ) | 211 | (713 | ) | 336 | |||||||||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | 6 | (390 | ) | 1,323 | (623 | ) | |||||||||||
Unrealized gains (losses) on cash flow hedges: | |||||||||||||||||
Reclassification from accumulated other comprehensive income (loss) to interest expense, before taxes | - | 899 | 160 | 975 | |||||||||||||
Reclassification from accumulated other comprehensive income (loss) to other revenues - other, before taxes | - | 293 | - | (12,453 | ) | ||||||||||||
Income tax effect | - | (418 | ) | (56 | ) | 4,017 | |||||||||||
Reclassification from accumulated other comprehensive income (loss) to interest expense and other revenues - other, net of taxes | - | 774 | 104 | (7,461 | ) | ||||||||||||
Total | $ | 6 | $ | 384 | $ | 1,427 | $ | (8,084 | ) |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
12. Income Taxes | |
At September 30, 2013, we had a net deferred tax liability of $167.7 million, compared to $298.9 million at December 31, 2012. The decrease in the net deferred tax liability was primarily due to an improvement in the fair value of our finance receivables, which are marked to market value for tax basis. The decrease also reflected the recording of a deferred tax asset related to the accrual of expenses associated with the grant of restricted stock units (“RSUs”). See Note 16 for further discussion on the grant of RSUs of Springleaf Holdings, LLC, the predecessor entity of SHI, to certain of our executives on September 30, 2013. We had a partial valuation allowance on our state deferred tax assets, net of a deferred federal tax benefit of $21.3 million at September 30, 2013, compared to $19.7 million at December 31, 2012. We also had a valuation allowance against our United Kingdom operations of $20.1 million at September 30, 2013 and $19.6 million at December 31, 2012. | |
The effective tax rate for the nine months ended September 30, 2013 was 36.3%. The effective tax rate differed from the federal statutory rate primarily due to an increase of 2.2% for the benefit from state income taxes, net of provision for federal income taxes, an increase of 1.2% for the benefit of tax exempt income, and a decrease of 1.0% for an out-of-period adjustment in the first quarter of 2013. This adjustment, although temporary in nature, had an impact on the state tax expense since the adjustment impacted various states that have net operating losses and valuation allowances. |
Restructuring
Restructuring | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring | ' | ||||||||||||||||
Restructuring | ' | ||||||||||||||||
13. Restructuring | |||||||||||||||||
As part of a strategic effort to streamline operations and reduce expenses, we initiated the following restructuring activities during the first half of 2012: | |||||||||||||||||
· ceased originating real estate loans in the United States and the United Kingdom; | |||||||||||||||||
· ceased branch-based personal lending and retail sales financing in 14 states where we did not have a significant presence; | |||||||||||||||||
· consolidated certain branch operations in 26 states; and | |||||||||||||||||
· closed 231 branch offices. | |||||||||||||||||
As a result of these initiatives, during the first half of 2012 we reduced our workforce at our branch offices, at our Evansville, Indiana headquarters, and in the United Kingdom by 820 employees and incurred a pretax charge of $23.5 million. | |||||||||||||||||
Restructuring expenses and related asset impairment and other expenses by segment were as follows: | |||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Consolidated | ||||||||||||
Total | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Restructuring expenses | $ | 15,634 | $ | 229 | $ | 818 | $ | 6,822 | $ | 23,503 | |||||||
Changes in the restructuring liability were as follows: | |||||||||||||||||
(dollars in thousands) | Severance | Contract | Asset | Other Exit | Total | ||||||||||||
Expenses | Termination | Writedowns | Expenses* | Restructuring | |||||||||||||
Expenses | Expenses | ||||||||||||||||
Three Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance at beginning of period | $ | - | $ | 113 | $ | - | $ | - | $ | 113 | |||||||
Amounts paid | - | (44 | ) | - | - | (44 | ) | ||||||||||
Balance at end of period | $ | - | $ | 69 | $ | - | $ | - | $ | 69 | |||||||
Three Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Balance at beginning of period | $ | 2,168 | $ | 1,609 | $ | - | $ | 397 | $ | 4,174 | |||||||
Amounts paid | (1,583 | ) | (885 | ) | - | (136 | ) | (2,604 | ) | ||||||||
Balance at end of period | $ | 585 | $ | 724 | $ | - | $ | 261 | $ | 1,570 | |||||||
Nine Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance at beginning of period | $ | 56 | $ | 365 | $ | - | $ | - | $ | 421 | |||||||
Amounts paid | (56 | ) | (296 | ) | - | - | (352 | ) | |||||||||
Balance at end of period | $ | - | $ | 69 | $ | - | $ | - | $ | 69 | |||||||
Nine Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Balance at beginning of period | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
Amounts charged to expense | 11,600 | 5,840 | 5,246 | 817 | 23,503 | ||||||||||||
Amounts paid | (11,015 | ) | (5,116 | ) | - | (756 | ) | (16,887 | ) | ||||||||
Non-cash expenses | - | - | (5,246 | ) | 200 | (5,046 | ) | ||||||||||
Balance at end of period | $ | 585 | $ | 724 | $ | - | $ | 261 | $ | 1,570 | |||||||
* Primarily includes removal expenses for branch furniture and signs and fees for outplacement services. Also includes the impairment of the market value adjustment on leased branch offices from the Fortress Acquisition. | |||||||||||||||||
We do not anticipate any additional future restructuring expenses to be incurred that can be reasonably estimated at September 30, 2013. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Contingencies | ' |
Contingencies | ' |
14. 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 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 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 $46.9 million at September 30, 2013 and $62.7 million at December 31, 2012. In 2012, our professional indemnity insurance claim was disputed, and in the fourth quarter of 2012, we reversed the recorded recovery on this insurance claim based upon our assessment that the probability of the recovery of the claim no longer met the probability standard for recognition. |
Risks_and_Uncertainties_Relate
Risks and Uncertainties Related to Liquidity and Capital Resources | 9 Months Ended |
Sep. 30, 2013 | |
Risks and Uncertainties Related to Liquidity and Capital Resources | ' |
Risks and Uncertainties Related to Liquidity and Capital Resources | ' |
15. Risks and Uncertainties Related to Liquidity and Capital Resources | |
We currently have a significant amount of indebtedness in relation to our equity. SFC’s credit ratings are non-investment grade, which impacts our cost of, and at times access to, capital and can (depending on market conditions) affect our ability to manage liquidity and the cost to refinance our indebtedness. | |
There are numerous risks to our financial results, liquidity, and capital raising and debt refinancing plans, some of which may not be quantified in our current liquidity forecasts. These risks include, but are not limited, to the following: | |
· our inability to grow our personal loan portfolio with adequate profitability; | |
· the effect of federal, state and local laws, regulations, or regulatory policies and practices; | |
· the liquidation and related losses within our real estate portfolio could be substantial and result in reduced cash receipts; | |
· potential liability relating to real estate and personal loans which we have sold or may sell in the future, or relating to securitized loans; | |
· our inability to monetize assets including, but not limited to, our access to debt and securitization markets and our note receivable from parent; and | |
· the potential for disruptions in bond and equity markets. | |
At September 30, 2013, we had $1.0 billion of cash and cash equivalents and during the nine months ended September 30, 2013 we generated a net loss of $73.7 million and net cash inflow from operating and investing activities of $540.8 million. At September 30, 2013, our remaining principal and interest payments for 2013 on our existing debt (excluding securitizations) totaled $560.0 million. Additionally, we have $262.8 million of debt maturities and interest payments (excluding securitizations) due in the first nine months of 2014. As of September 30, 2013, we had $1.4 billion UPB of unencumbered personal loans and $1.0 billion UPB of unencumbered real estate loans. In addition, SFC may demand payment of some or all of its note receivable from SFI ($538.0 million outstanding at September 30, 2013); however, SFC does not anticipate the need for additional liquidity during 2013 and does not expect to demand payment from SFI in 2013. | |
Based on our estimates and taking into account the risks and uncertainties of our plans, we believe that we will have adequate liquidity to finance and operate our businesses and repay our obligations as they become due for at least the next twelve months. | |
It is possible that the actual outcome of one or more of our plans could be materially different than we expect or that one or more of our significant judgments or estimates about the potential effects of these risks and uncertainties could prove to be materially incorrect and such actual results could materially adversely affect us. |
Benefit_Plans
Benefit Plans | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Benefit Plans | ' | |||||||||||||
Benefit Plans | ' | |||||||||||||
16. 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: | ||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Pension | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | - | $ | 3,728 | $ | - | $ | 11,852 | ||||||
Interest cost | 3,589 | 4,790 | 10,769 | 14,345 | ||||||||||
Expected return on assets | (3,874 | ) | (5,159 | ) | (11,622 | ) | (15,530 | ) | ||||||
Amortization of net loss | 12 | 23 | 35 | 296 | ||||||||||
Net periodic benefit cost | $ | (273 | ) | $ | 3,382 | $ | (818 | ) | $ | 10,963 | ||||
Postretirement | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 81 | $ | 76 | $ | 242 | $ | 234 | ||||||
Interest cost | 64 | 71 | 193 | 214 | ||||||||||
Curtailment gain | - | - | - | (110 | ) | |||||||||
Net periodic benefit cost | $ | 145 | $ | 147 | $ | 435 | $ | 338 | ||||||
GRANT OF RESTRICTED STOCK UNITS | ||||||||||||||
We recorded share-based compensation expense of $131.3 million in the third quarter of 2013 due to the grant of RSUs of Springleaf Holdings, LLC, the predecessor entity of SHI, to certain of our executives on September 30, 2013. These RSUs were converted into the right to receive 8.203125% of the outstanding shares of SHI common stock following the conversion of Springleaf Holdings, LLC into SHI on October 9, 2013. The shares of SHI common stock underlying these RSUs were delivered to the holders in October, 2013 after the conversion. The shares are fully vested, however generally cannot be sold or otherwise transferred for five years following the date of delivery, except to the extent necessary to satisfy certain tax obligations. | ||||||||||||||
The Company has recognized this grant in accordance with ASC 718, Compensation—Stock Compensation. This guidance requires all share-based payments to employees, including grants of employee stock options, to be recognized as an expense in the consolidated statements of income and comprehensive income, based on the fair values. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||
17. Segment Information | |||||||||||||||||||||||
During the fourth quarter of 2012, we redefined our segments to coincide with how our businesses are managed. Effective December 31, 2012, our three segments include: Consumer, Insurance, and Real Estate. These segments evolved primarily from management’s redefined business strategy, including its decision to cease real estate lending effective January 1, 2012 and to shift its focus to personal loan products which we believe have significant prospects for growth and business development due to the strong demand in our target market of nonprime borrowers. | |||||||||||||||||||||||
Management considers Consumer and Insurance 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. We also require credit-related property and casualty insurance, when needed, to protect our interest in the property pledged as collateral. | |||||||||||||||||||||||
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 are either serviced by our branch personnel or by our centralized servicing operation. Real estate loans previously acquired or originated through centralized distribution channels are serviced by one of our wholly owned subsidiaries, MorEquity, all of which are subserviced by Nationstar, except for certain securitized real estate loans, which are serviced and subserviced by third parties. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. As a result of the cessation of real estate lending effective January 1, 2012, all of our real estate loans are in a liquidating status. | |||||||||||||||||||||||
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 as a result of our restructuring activities during the first half of 2012, 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. Other also includes $131.3 million of non-cash stock compensation expense due to the grant of RSUs to certain of our executives in the third quarter of 2013, which is not considered pertinent in determining segment performance. | |||||||||||||||||||||||
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 “Push-down Accounting Adjustments” column in the following tables 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; and | |||||||||||||||||||||||
· the reversal of the decreases to the allowance for finance receivable losses (on a historical accounting basis). | |||||||||||||||||||||||
The following tables present information about the Company’s segments as well as reconciliations to the condensed consolidated financial statement amounts. Due to the changes in the composition of our previously reported segments, we have restated the corresponding segment information for the prior period. | |||||||||||||||||||||||
Total | |||||||||||||||||||||||
Historical | Push-down | ||||||||||||||||||||||
Accounting | Accounting | Consolidated | |||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Basis | Adjustments | Total | ||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Finance charges | $ | 188,294 | $ | - | $ | 168,872 | $ | 10,001 | $ | 367,167 | $ | 50,460 | $ | 417,627 | |||||||||
Interest expense | 38,260 | - | 129,309 | 3,329 | 170,898 | 34,138 | 205,036 | ||||||||||||||||
Net interest income | 150,034 | - | 39,563 | 6,672 | 196,269 | 16,322 | 212,591 | ||||||||||||||||
Provision for finance receivable losses | 38,111 | - | 42,863 | 2,392 | 83,366 | 14,048 | 97,414 | ||||||||||||||||
Net interest income after provision for finance receivable losses | 111,923 | - | (3,300 | ) | 4,280 | 112,903 | 2,274 | 115,177 | |||||||||||||||
Other revenues: | |||||||||||||||||||||||
Insurance | - | 38,266 | - | 18 | 38,284 | (7 | ) | 38,277 | |||||||||||||||
Investment | - | 8,308 | - | - | 8,308 | (1,552 | ) | 6,756 | |||||||||||||||
Intersegment - insurance commissions | 15,086 | (15,097 | ) | 42 | (31 | ) | - | - | - | ||||||||||||||
Net loss on repurchases and repayments of debt | (2,892 | ) | - | (17,175 | ) | (705 | ) | (20,772 | ) | (13,731 | ) | (34,503 | ) | ||||||||||
Other | 493 | 2,426 | (1,841 | ) | 4,402 | 5,480 | 34 | 5,514 | |||||||||||||||
Total other revenues | 12,687 | 33,903 | (18,974 | ) | 3,684 | 31,300 | (15,256 | ) | 16,044 | ||||||||||||||
Other expenses: | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Salaries and benefits | 58,593 | 7,285 | 7,551 | 136,249 | 209,678 | (53 | ) | 209,625 | |||||||||||||||
Other operating expenses | 30,867 | 3,288 | 14,785 | 2,067 | 51,007 | 1,103 | 52,110 | ||||||||||||||||
Insurance losses and loss adjustment expenses | - | 16,849 | - | - | 16,849 | (299 | ) | 16,550 | |||||||||||||||
Total other expenses | 89,460 | 27,422 | 22,336 | 138,316 | 277,534 | 751 | 278,285 | ||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 35,150 | $ | 6,481 | $ | (44,610 | ) | $ | (130,352 | ) | $ | (133,331 | ) | $ | (13,733 | ) | $ | (147,064 | ) | ||||
Total | |||||||||||||||||||||||
Historical | Push-down | ||||||||||||||||||||||
Accounting | Accounting | Consolidated | |||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Basis | Adjustments | Total | ||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Finance charges | $ | 149,333 | $ | - | $ | 198,164 | $ | 22,603 | $ | 370,100 | $ | 46,755 | $ | 416,855 | |||||||||
Finance receivables held for sale originated as held for investment | - | - | 344 | - | 344 | 2 | 346 | ||||||||||||||||
Total interest income | 149,333 | - | 198,508 | 22,603 | 370,444 | 46,757 | 417,201 | ||||||||||||||||
Interest expense | 35,434 | - | 165,303 | 7,271 | 208,008 | 59,077 | 267,085 | ||||||||||||||||
Net interest income | 113,899 | - | 33,205 | 15,332 | 162,436 | (12,320 | ) | 150,116 | |||||||||||||||
Provision for finance receivable losses | 17,633 | - | (107,306 | ) | 2,663 | (87,010 | ) | 177,846 | 90,836 | ||||||||||||||
Net interest income after provision for finance receivable losses | 96,266 | - | 140,511 | 12,669 | 249,446 | (190,166 | ) | 59,280 | |||||||||||||||
Other revenues: | |||||||||||||||||||||||
Insurance | - | 31,718 | - | 23 | 31,741 | (22 | ) | 31,719 | |||||||||||||||
Investment | - | 7,976 | - | - | 7,976 | (2,229 | ) | 5,747 | |||||||||||||||
Intersegment - insurance commissions | 10,576 | (10,547 | ) | 29 | (58 | ) | - | - | - | ||||||||||||||
Net gain (loss) on repurchases and repayments of debt | 3,234 | - | 7,565 | 776 | 11,575 | (22,245 | ) | (10,670 | ) | ||||||||||||||
Other | (1,980 | ) | 1,543 | (13,143 | ) | 5,757 | (7,823 | ) | 9,676 | 1,853 | |||||||||||||
Total other revenues | 11,830 | 30,690 | (5,549 | ) | 6,498 | 43,469 | (14,820 | ) | 28,649 | ||||||||||||||
Other expenses: | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Salaries and benefits | 60,970 | 2,890 | 7,052 | 7,334 | 78,246 | (124 | ) | 78,122 | |||||||||||||||
Other operating expenses | 24,585 | 2,097 | 14,570 | 23,988 | 65,240 | 6,534 | 71,774 | ||||||||||||||||
Insurance losses and loss adjustment expenses | - | 15,360 | - | - | 15,360 | (208 | ) | 15,152 | |||||||||||||||
Total other expenses | 85,555 | 20,347 | 21,622 | 31,322 | 158,846 | 6,202 | 165,048 | ||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 22,541 | $ | 10,343 | $ | 113,340 | $ | (12,155 | ) | $ | 134,069 | $ | (211,188 | ) | $ | (77,119 | ) | ||||||
Total | |||||||||||||||||||||||
Historical | Push-down | ||||||||||||||||||||||
Accounting | Accounting | Consolidated | |||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Basis | Adjustments | Total | ||||||||||||||||
At or for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Finance charges | $ | 519,315 | $ | - | $ | 529,446 | $ | 37,631 | $ | 1,086,392 | $ | 149,091 | $ | 1,235,483 | |||||||||
Interest expense | 111,399 | - | 418,051 | 12,198 | 541,648 | 105,284 | 646,932 | ||||||||||||||||
Net interest income | 407,916 | - | 111,395 | 25,433 | 544,744 | 43,807 | 588,551 | ||||||||||||||||
Provision for finance receivable losses | 52,126 | - | 193,391 | (3,356 | ) | 242,161 | 19,981 | 262,142 | |||||||||||||||
Net interest income after provision for finance receivable losses | 355,790 | - | (81,996 | ) | 28,789 | 302,583 | 23,826 | 326,409 | |||||||||||||||
Other revenues: | |||||||||||||||||||||||
Insurance | - | 107,114 | - | 58 | 107,172 | (28 | ) | 107,144 | |||||||||||||||
Investment | - | 31,054 | - | - | 31,054 | (4,763 | ) | 26,291 | |||||||||||||||
Intersegment - insurance commissions | 43,296 | (43,302 | ) | 100 | (94 | ) | - | - | - | ||||||||||||||
Net gain (loss) on repurchases and repayments of debt | (4,391 | ) | - | (36,775 | ) | (977 | ) | (42,143 | ) | 7,585 | (34,558 | ) | |||||||||||
Other | 1,256 | 6,797 | (1,372 | ) | 14,327 | 21,008 | (134 | ) | 20,874 | ||||||||||||||
Total other revenues | 40,161 | 101,663 | (38,047 | ) | 13,314 | 117,091 | 2,660 | 119,751 | |||||||||||||||
Other expenses: | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Salaries and benefits | 182,051 | 11,402 | 20,541 | 149,329 | 363,323 | (160 | ) | 363,163 | |||||||||||||||
Other operating expenses | 89,642 | 8,369 | 43,431 | 6,174 | 147,616 | 3,418 | 151,034 | ||||||||||||||||
Insurance losses and loss adjustment expenses | - | 48,373 | - | - | 48,373 | (723 | ) | 47,650 | |||||||||||||||
Total other expenses | 271,693 | 68,144 | 63,972 | 155,503 | 559,312 | 2,535 | 561,847 | ||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 124,258 | $ | 33,519 | $ | (184,015 | ) | $ | (113,400 | ) | $ | (139,638 | ) | $ | 23,951 | $ | (115,687 | ) | |||||
Assets | $ | 3,075,404 | $ | 913,440 | $ | 8,762,800 | $ | 1,801,248 | $ | 14,552,892 | $ | (633,464 | ) | $ | 13,919,428 | ||||||||
Total | |||||||||||||||||||||||
Historical | Push-down | ||||||||||||||||||||||
Accounting | Accounting | Consolidated | |||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Basis | Adjustments | Total | ||||||||||||||||
At or for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Finance charges | $ | 429,564 | $ | - | $ | 619,312 | $ | 82,976 | $ | 1,131,852 | $ | 138,114 | $ | 1,269,966 | |||||||||
Finance receivables held for sale originated as held for investment | - | - | 2,734 | - | 2,734 | 6 | 2,740 | ||||||||||||||||
Total interest income | 429,564 | - | 622,046 | 82,976 | 1,134,586 | 138,120 | 1,272,706 | ||||||||||||||||
Interest expense | 102,129 | - | 508,368 | 27,398 | 637,895 | 185,439 | 823,334 | ||||||||||||||||
Net interest income | 327,435 | - | 113,678 | 55,578 | 496,691 | (47,319 | ) | 449,372 | |||||||||||||||
Provision for finance receivable losses | 46,471 | - | (25,488 | ) | 7,196 | 28,179 | 199,251 | 227,430 | |||||||||||||||
Net interest income after provision for finance receivable losses | 280,964 | - | 139,166 | 48,382 | 468,512 | (246,570 | ) | 221,942 | |||||||||||||||
Other revenues: | |||||||||||||||||||||||
Insurance | - | 93,050 | - | 84 | 93,134 | (92 | ) | 93,042 | |||||||||||||||
Investment | - | 28,226 | - | - | 28,226 | (6,848 | ) | 21,378 | |||||||||||||||
Intersegment - insurance commissions | 29,757 | (30,045 | ) | 65 | 223 | - | - | - | |||||||||||||||
Net gain (loss) on repurchases and repayments of debt | 5,881 | - | 13,755 | 1,412 | 21,048 | (32,798 | ) | (11,750 | ) | ||||||||||||||
Other | (2,250 | ) | 3,173 | (47,873 | ) | 15,969 | (30,981 | ) | 11,777 | (19,204 | ) | ||||||||||||
Total other revenues | 33,388 | 94,404 | (34,053 | ) | 17,688 | 111,427 | (27,961 | ) | 83,466 | ||||||||||||||
Other expenses: | |||||||||||||||||||||||
Operating expenses: | 185,261 | 8,660 | 21,845 | 25,731 | 241,497 | (383 | ) | 241,114 | |||||||||||||||
Salaries and benefits | |||||||||||||||||||||||
Other operating expenses | 88,691 | 8,215 | 59,224 | 48,669 | 204,799 | 9,358 | 214,157 | ||||||||||||||||
Restructuring expenses | 15,634 | 229 | 818 | 6,822 | 23,503 | - | 23,503 | ||||||||||||||||
Insurance losses and loss adjustment expenses | - | 43,076 | - | - | 43,076 | (774 | ) | 42,302 | |||||||||||||||
Total other expenses | 289,586 | 60,180 | 81,887 | 81,222 | 512,875 | 8,201 | 521,076 | ||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 24,766 | $ | 34,224 | $ | 23,226 | $ | (15,152 | ) | $ | 67,064 | $ | (282,732 | ) | $ | (215,668 | ) | ||||||
Assets | $ | 2,536,917 | $ | 957,558 | $ | 9,966,285 | $ | 2,444,705 | $ | 15,905,465 | $ | (848,860 | ) | $ | 15,056,605 |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||
18. 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. | |||||||||||||||||||||||
Management is responsible for the determination of the value of the financial assets and financial liabilities and the supporting methodologies and assumptions. Third-party valuation service providers are employed to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments. When the valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. | |||||||||||||||||||||||
Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted internal valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from valuation service providers through various analytical techniques. We conduct price reviews for all assets. Assets that fall outside a price change tolerance are sent to our third-party valuation provider for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from the valuation service providers to other third-party valuation sources for selected securities. | |||||||||||||||||||||||
FAIR VALUE HIERARCHY | |||||||||||||||||||||||
We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments. | |||||||||||||||||||||||
We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. | |||||||||||||||||||||||
Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. | |||||||||||||||||||||||
In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | |||||||||||||||||||||||
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-13 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,048,751 | $ | - | $ | - | $ | 1,048,751 | $ | 1,048,751 | |||||||||||||
Investment securities | 100 | 541,676 | 26,431 | 568,207 | 568,207 | ||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | - | - | 11,097,113 | 11,097,113 | 10,969,326 | ||||||||||||||||||
Note receivable from parent | - | 537,989 | - | 537,989 | 537,989 | ||||||||||||||||||
Restricted cash | 346,631 | - | - | 346,631 | 346,631 | ||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Commercial mortgage loans | - | - | 94,885 | 94,885 | 102,798 | ||||||||||||||||||
Escrow advance receivable | - | - | 19,674 | 19,674 | 19,674 | ||||||||||||||||||
Receivable from parent and affiliates | - | 17,664 | - | 17,664 | 17,664 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Long-term debt | $ | - | $ | 12,694,404 | $ | - | $ | 12,694,404 | $ | 11,740,773 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,357,212 | $ | - | $ | - | $ | 1,357,212 | $ | 1,357,212 | |||||||||||||
Investment securities | 255 | 639,148 | 29,767 | 669,170 | 669,170 | ||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | - | - | 11,608,720 | 11,608,720 | 11,516,591 | ||||||||||||||||||
Note receivable from parent | - | 537,989 | - | 537,989 | 537,989 | ||||||||||||||||||
Restricted cash | 113,703 | - | - | 113,703 | 113,703 | ||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Commercial mortgage loans | - | - | 99,933 | 99,933 | 110,398 | ||||||||||||||||||
Cross currency interest rate derivative | - | 26,699 | - | 26,699 | 26,699 | ||||||||||||||||||
Escrow advance receivable | - | - | 18,520 | 18,520 | 18,520 | ||||||||||||||||||
Receivable from parent and affiliates | - | 16,196 | - | 16,196 | 16,196 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Long-term debt | $ | - | $ | 12,912,712 | $ | - | $ | 12,912,712 | $ | 12,454,316 | |||||||||||||
Payable to affiliate | - | 30,750 | - | 30,750 | 30,750 | ||||||||||||||||||
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 | ||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | At Fair Value | |||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents in mutual funds | $ | 264,135 | $ | - | $ | - | $ | 264,135 | |||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
U.S. government and government sponsored entities | - | 74,783 | - | 74,783 | |||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | - | 94,974 | - | 94,974 | |||||||||||||||||||
Corporate debt | - | 207,550 | 15,090 | 222,640 | |||||||||||||||||||
RMBS | - | 139,051 | 85 | 139,136 | |||||||||||||||||||
CMBS | - | 20,212 | 2 | 20,214 | |||||||||||||||||||
CDO/ABS | - | 5,106 | 8,433 | 13,539 | |||||||||||||||||||
Total | - | 541,676 | 23,610 | 565,286 | |||||||||||||||||||
Other long-term investments (a) | - | - | 1,375 | 1,375 | |||||||||||||||||||
Common stocks (b) | 100 | - | - | 100 | |||||||||||||||||||
Total investment securities | 100 | 541,676 | 24,985 | 566,761 | |||||||||||||||||||
Restricted cash in mutual funds | 284,816 | - | - | 284,816 | |||||||||||||||||||
Total | $ | 549,051 | $ | 541,676 | $ | 24,985 | $ | 1,115,712 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents in mutual funds | $ | 630,227 | $ | - | $ | - | $ | 630,227 | |||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
U.S. government and government sponsored entities | - | 36,442 | - | 36,442 | |||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | - | 140,224 | - | 140,224 | |||||||||||||||||||
Corporate debt | - | 274,272 | 13,417 | 287,689 | |||||||||||||||||||
RMBS | - | 172,135 | 74 | 172,209 | |||||||||||||||||||
CMBS | - | 12,899 | 153 | 13,052 | |||||||||||||||||||
CDO/ABS | - | 3,176 | 13,392 | 16,568 | |||||||||||||||||||
Total | - | 639,148 | 27,036 | 666,184 | |||||||||||||||||||
Other long-term investments (a) | - | - | 1,380 | 1,380 | |||||||||||||||||||
Common stocks (b) | 255 | - | - | 255 | |||||||||||||||||||
Total investment securities | 255 | 639,148 | 28,416 | 667,819 | |||||||||||||||||||
Restricted cash in mutual funds | 93,781 | - | - | 93,781 | |||||||||||||||||||
Other assets - cross currency interest rate derivative | - | 26,699 | - | 26,699 | |||||||||||||||||||
Total | $ | 724,263 | $ | 665,847 | $ | 28,416 | $ | 1,418,526 | |||||||||||||||
(a) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2013 and December 31, 2012 that we account for using the equity method. | |||||||||||||||||||||||
(b) Common stocks excludes stocks not carried at fair value of $0.9 million at September 30, 2013 and $0.7 million at December 31, 2012. | |||||||||||||||||||||||
We had no transfers between Level 1 and Level 2 during the three or nine months ended September 30, 2013. | |||||||||||||||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2013: | |||||||||||||||||||||||
Net gains (losses) included in: | |||||||||||||||||||||||
Purchases, | |||||||||||||||||||||||
sales, | |||||||||||||||||||||||
Balance at | Other | issues, | Transfers | Transfers | Balance | ||||||||||||||||||
beginning | Other | comprehensive | settlements | into | out of | at end of | |||||||||||||||||
(dollars in thousands) | of period | revenues | income (loss) | (a) | Level 3 | Level 3 | period | ||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 13,114 | $ | (58 | ) | $ | 18 | $ | 2,016 | $ | - | $ | - | $ | 15,090 | ||||||||
RMBS | 218 | - | (133 | ) | - | - | - | 85 | |||||||||||||||
CMBS | 2 | - | - | - | - | - | 2 | ||||||||||||||||
CDO/ABS | 8,463 | 49 | (4 | ) | (75 | ) | - | - | 8,433 | ||||||||||||||
Total | 21,797 | (9 | ) | (119 | ) | 1,941 | - | - | 23,610 | ||||||||||||||
Other long-term investments (b) | 1,478 | - | (103 | ) | - | - | - | 1,375 | |||||||||||||||
Total investment securities | $ | 23,275 | $ | (9 | ) | $ | (222 | ) | $ | 1,941 | $ | - | $ | - | $ | 24,985 | |||||||
(a) The detail of purchases, sales, issues, and settlements for the three months ended September 30, 2013 is presented in the table below. | |||||||||||||||||||||||
(b) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2013 that we account for using the equity method. | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | - | $ | - | $ | - | $ | 2,016 | |||||||||||||
CDO/ABS | - | - | - | (75 | ) | (75 | ) | ||||||||||||||||
Total investment securities | $ | 2,016 | $ | - | $ | - | $ | (75 | ) | $ | 1,941 | ||||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2012: | |||||||||||||||||||||||
Net gains (losses) included in: | |||||||||||||||||||||||
Purchases, | |||||||||||||||||||||||
sales, | |||||||||||||||||||||||
Balance at | Other | issues, | Transfers | Transfers | Balance | ||||||||||||||||||
beginning | Other | comprehensive | settlements | into | out of | at end of | |||||||||||||||||
(dollars in thousands) | of period | revenues | income (loss) | (a) | Level 3 | Level 3 | period | ||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | - | $ | (19 | ) | $ | 8 | $ | - | $ | 14,133 | $ | - | $ | 14,122 | ||||||||
RMBS | 2,025 | (207 | ) | (362 | ) | (62 | ) | - | (1,304 | ) | 90 | ||||||||||||
CMBS | 7,864 | (29 | ) | 59 | (456 | ) | - | (7,159 | ) | 279 | |||||||||||||
CDO/ABS | 9,696 | 100 | 379 | (263 | ) | 5,169 | (909 | ) | 14,172 | ||||||||||||||
Total | 19,585 | (155 | ) | 84 | (781 | ) | 19,302 | (9,372 | ) | 28,663 | |||||||||||||
Other long-term investments (b) | 2,707 | - | (196 | ) | - | - | - | 2,511 | |||||||||||||||
Total investment securities | $ | 22,292 | $ | (155 | ) | $ | (112 | ) | $ | (781 | ) | $ | 19,302 | $ | (9,372 | ) | $ | 31,174 | |||||
(a) “Purchases, sales, issues, and settlements” column only consist of settlements. There were no purchases, sales, or issues of investment securities for the three months ended September 30, 2012. | |||||||||||||||||||||||
(b) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2012 that we account for using the equity method. | |||||||||||||||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013: | |||||||||||||||||||||||
Net gains (losses) included in: | |||||||||||||||||||||||
Purchases, | |||||||||||||||||||||||
sales, | |||||||||||||||||||||||
Balance at | Other | issues, | Transfers | Transfers | Balance | ||||||||||||||||||
beginning | Other | comprehensive | settlements | into | out of | at end of | |||||||||||||||||
(dollars in thousands) | of period | revenues | income (loss) | (a) | Level 3 | Level 3 | period | ||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 13,417 | $ | (167 | ) | $ | 305 | $ | 1,535 | $ | - | $ | - | $ | 15,090 | ||||||||
RMBS | 74 | (35 | ) | 46 | - | - | - | 85 | |||||||||||||||
CMBS | 153 | (8 | ) | 6 | (149 | ) | - | - | 2 | ||||||||||||||
CDO/ABS | 13,392 | 671 | (535 | ) | (5,095 | ) | - | - | 8,433 | ||||||||||||||
Total | 27,036 | 461 | (178 | ) | (3,709 | ) | - | - | 23,610 | ||||||||||||||
Other long-term investments (b) | 1,380 | 2 | 4 | (11 | ) | - | - | 1,375 | |||||||||||||||
Total investment securities | $ | 28,416 | $ | 463 | $ | (174 | ) | $ | (3,720 | ) | $ | - | $ | - | $ | 24,985 | |||||||
(a) The detail of purchases, sales, issues, and settlements for the nine months ended September 30, 2013 is presented in the table below. | |||||||||||||||||||||||
(b) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2013 that we account for using the equity method. | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | - | $ | - | $ | (481 | ) | $ | 1,535 | ||||||||||||
CMBS | - | - | - | (149 | ) | (149 | ) | ||||||||||||||||
CDO/ABS | - | - | - | (5,095 | ) | (5,095 | ) | ||||||||||||||||
Total | 2,016 | - | - | (5,725 | ) | (3,709 | ) | ||||||||||||||||
Other long-term investments | - | - | - | (11 | ) | (11 | ) | ||||||||||||||||
Total investment securities | $ | 2,016 | $ | - | $ | - | $ | (5,736 | ) | $ | (3,720 | ) | |||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2012: | |||||||||||||||||||||||
Net gains (losses) included in: | |||||||||||||||||||||||
Purchases, | |||||||||||||||||||||||
sales, | |||||||||||||||||||||||
Balance at | Other | issues, | Transfers | Transfers | Balance | ||||||||||||||||||
beginning | Other | comprehensive | settlements | into | out of | at end of | |||||||||||||||||
(dollars in thousands) | of period | revenues | income (loss) | (a) | Level 3 | Level 3 | period | ||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 2,800 | $ | (16 | ) | $ | 192 | $ | (2,987 | ) | $ | 14,133 | $ | - | $ | 14,122 | |||||||
RMBS | 1,914 | (171 | ) | (170 | ) | (179 | ) | - | (1,304 | ) | 90 | ||||||||||||
CMBS | 7,944 | (40 | ) | 342 | (808 | ) | - | (7,159 | ) | 279 | |||||||||||||
CDO/ABS | 8,916 | 232 | 1,236 | (472 | ) | 5,169 | (909 | ) | 14,172 | ||||||||||||||
Total | 21,574 | 5 | 1,600 | (4,446 | ) | 19,302 | (9,372 | ) | 28,663 | ||||||||||||||
Other long-term investments (b) | 4,127 | - | (680 | ) | (936 | ) | - | - | 2,511 | ||||||||||||||
Common stocks | 3 | (5 | ) | 2 | - | - | - | - | |||||||||||||||
Total investment securities | $ | 25,704 | $ | - | $ | 922 | $ | (5,382 | ) | $ | 19,302 | $ | (9,372 | ) | $ | 31,174 | |||||||
(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, 2012. | |||||||||||||||||||||||
(b) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2012 that we account for using the equity method. | |||||||||||||||||||||||
During the three and nine months ended September 30, 2012, we transferred $19.3 million of assets into Level 3, consisting of certain private placement corporate debt and CDO/ABS. During the three and nine months ended September 30, 2012, we transferred $9.4 million of assets out of Level 3, consisting of certain RMBS, CMBS, and CDO/ABS. Transfers into Level 3 and transfers out of Level 3 for the investment securities are primarily the result of obtaining additional information regarding inputs used to price our investment portfolio. | |||||||||||||||||||||||
There were no unrealized gains or losses recognized in earnings on instruments held at September 30, 2013 or 2012. | |||||||||||||||||||||||
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, 2013 and December 31, 2012 is as follows: | |||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Corporate debt | Discounted cash flows | Yield | 2.61% - 7.61% | 2.74% - 7.35% | |||||||||||||||||||
-4.41% | -4.45% | ||||||||||||||||||||||
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* | N/A* | |||||||||||||||||||
* 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 (RMBS, 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 | |||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Real estate owned | $ | - | $ | - | $ | 69,497 | $ | 69,497 | |||||||||||||||
Commercial mortgage loans | - | - | 11,735 | 11,735 | |||||||||||||||||||
Total | $ | - | $ | - | $ | 81,232 | $ | 81,232 | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Real estate owned | $ | - | $ | - | $ | 98,379 | $ | 98,379 | |||||||||||||||
Commercial mortgage loans | - | - | 19,037 | 19,037 | |||||||||||||||||||
Total | $ | - | $ | - | $ | 117,416 | $ | 117,416 | |||||||||||||||
Net impairment charges recorded on assets measured at fair value on a non-recurring basis were as follows: | |||||||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Real estate owned | $ | 5,668 | $ | 7,686 | $ | 19,270 | $ | 27,546 | |||||||||||||||
Commercial mortgage loans | (61 | ) | 1,626 | (1,774 | ) | 3,093 | |||||||||||||||||
Finance receivables held for sale | - | - | - | 1,371 | |||||||||||||||||||
Other intangible assets | - | 4,555 | - | 4,555 | |||||||||||||||||||
Total | $ | 5,607 | $ | 13,867 | $ | 17,496 | $ | 36,565 | |||||||||||||||
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 Real Estate to their fair value for the three and nine months ended September 30, 2013 and 2012 and recorded the writedowns in other revenues – other. The fair values disclosed in the tables above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts recorded on the balance sheet 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 to record their fair value for the three and nine months ended September 30, 2013 and 2012 and recorded the net impairments in investment revenues. | |||||||||||||||||||||||
In accordance with the authoritative guidance for the accounting for the impairment of finance receivables held for sale, we wrote down certain finance receivables held for sale reported in Real Estate to their fair value for the nine months ended September 30, 2012 and recorded the writedowns in other revenues – other. | |||||||||||||||||||||||
In accordance with the authoritative guidance for the accounting for the impairment of other intangible assets, we recognized $4.6 million of impairment in operating expenses for the three and nine months ended September 30, 2012 related to the write off of our customer lists intangible assets as a result of the sale of Ocean finance receivables and brokerage business in August 2012. | |||||||||||||||||||||||
The unobservable inputs and quantitative data used in our Level 3 valuations for our real estate owned, commercial mortgage loans, and finance receivables held for sale 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, 2013 and December 31, 2012 is as follows: | |||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
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* | |||||||||||||||||||
Finance receivables held for sale | Market approach | Negotiated prices with prospective purchasers | N/A* | N/A* | |||||||||||||||||||
Other intangible assets | Discounted cash flows | N/A* | N/A* | N/A* | |||||||||||||||||||
* Not applicable. | |||||||||||||||||||||||
FAIR VALUE MEASUREMENTS – VALUATION METHODOLOGIES AND ASSUMPTIONS | |||||||||||||||||||||||
We used the following methods and assumptions to estimate fair value. | |||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||
The carrying amount reported in our condensed consolidated balance sheets approximates fair value. | |||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||
We utilized third-party valuation service providers to measure the fair value of our investment securities (which consist primarily of bonds). Whenever available, we obtained quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtained market price data from exchange or dealer markets. | |||||||||||||||||||||||
We estimated 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 adjusted 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. | |||||||||||||||||||||||
Finance Receivables | |||||||||||||||||||||||
The fair value of net finance receivables, less allowance for finance receivable losses, both non-impaired and purchased credit impaired, were determined using discounted cash flow methodologies. The application of these methodologies required 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 was 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. | |||||||||||||||||||||||
Note Receivable from Parent | |||||||||||||||||||||||
The fair value of the note receivable from parent approximated 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. | |||||||||||||||||||||||
Restricted Cash | |||||||||||||||||||||||
The carrying amount reported in our condensed consolidated balance sheets approximates fair value. | |||||||||||||||||||||||
Commercial Mortgage Loans | |||||||||||||||||||||||
We utilized 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. | |||||||||||||||||||||||
Other Intangible Assets | |||||||||||||||||||||||
Each of our net intangible assets was determined to have a finite useful life with the exception of the insurance licenses. For those net intangible assets with a finite useful life, we review such intangibles for impairment quarterly and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. For the insurance licenses, we first complete a qualitative assessment of the licenses to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the licenses are more likely than not to have been impaired, we proceed with the fair value calculation of the licenses. The fair value of the licenses is determined in accordance with our fair value measurement policy. If the fair value of the licenses is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification of these licenses will be evaluated to determine whether such classification remains appropriate. | |||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Our derivatives are not traded on an exchange. The valuation model used by our third-party valuation service provider to calculate fair value of our derivative instruments includes a variety of observable inputs, including contractual terms, interest rate curves, foreign exchange rates, yield curves, credit curves, measure of volatility, and correlations of such inputs. Valuation adjustments may be made in the determination of fair value. These adjustments include amounts to reflect counterparty credit quality and liquidity risk, as well as credit and market valuation adjustments. The credit valuation adjustment adjusts the valuation of derivatives to account for nonperformance risk of our counterparty with respect to all net derivative assets positions. The credit valuation adjustment also accounts for our own credit risk in the fair value measurement of all net derivative liabilities’ positions, when appropriate. The market valuation adjustment adjusts the valuation of derivatives to reflect the fact that we are an “end-user” of derivative products. As such, the valuation is adjusted to take into account the bid-offer spread (the liquidity risk), as we are not a dealer of derivative products. | |||||||||||||||||||||||
Escrow Advance Receivable | |||||||||||||||||||||||
The carrying amount reported in our condensed consolidated balance sheets approximates fair value. | |||||||||||||||||||||||
Receivable from Parent and Affiliates | |||||||||||||||||||||||
The carrying amount reported in our condensed consolidated balance sheets approximates fair value. | |||||||||||||||||||||||
Long-term Debt | |||||||||||||||||||||||
Where market-observable prices are not available, we estimated 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. | |||||||||||||||||||||||
Payable to Affiliate | |||||||||||||||||||||||
The fair value of the payable to affiliate approximates the carrying value due to its short-term nature. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
19. Subsequent Events | |
SPRINGLEAF FINANCIAL HOLDINGS, LLC INCENTIVE UNITS | |
On October 9, 2013, certain executives of the Company received a grant of incentive units in the Initial Stockholder. These incentive units are intended to encourage the executives to create sustainable, long-term value for the Company by providing them with interests that are subject to their continued employment with the Company and that only provide benefits (in the form of distributions) if the Initial Stockholder makes distributions to one or more of its common members that exceed specified amounts. The incentive units are entitled to vote together with the holders of common units in the Initial Stockholder as a single class on all matters. The incentive units may not be sold or otherwise transferred and the executives are entitled to receive these distributions only while they are employed with the Company, unless the executive’s termination of employment results from the executive’s death, in which case the executive’s beneficiaries will be entitled to receive any future distributions. | |
The Company will recognize these incentive units in accordance with ASC 710, Compensation— General, and will recognize compensation expense at the time distributions are made to the executives. | |
SECURITIZATION | |
On October 9, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $270.5 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-3 (the “2013-3 Trust”), at a 3.40% weighted average yield. We sold the mortgage-backed notes for $269.4 million, after the price discount but before expenses. We initially retained $228.7 million of the 2013-3 Trust’s subordinate mortgage-backed notes. On October 17, 2013, we sold $22.5 million of the previously retained mortgage-backed notes and subsequently recorded $22.7 million of additional debt. | |
NOTE RECEIVABLE FROM PARENT | |
On October 10, 2013 and October 28, 2013, SFC received payments of $140.0 million and $230.0 million, respectively, from SFI towards SFC’s note receivable from parent. Following the payments, SFC’s note receivable from parent totaled $168.0 million. 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 2013 and does not expect to demand payment from SFI in 2013. | |
SECURED TERM LOAN PREPAYMENT | |
On October 11, 2013, SFFC made a prepayment, without penalty or premium, of $550.0 million of outstanding principal (plus accrued interest) on the secured term loan. Following the prepayment, the initial loans under the secured term loan maturing in 2017 were fully repaid, and the outstanding principal amount of loans under the New Loan Tranche of the secured term loan maturing in 2019, put in place on September 30, 2013, totaled $750.0 million. | |
INITIAL PUBLIC OFFERING | |
On October 21, 2013, SHI completed its initial public offering of common stock and, together with certain selling stockholders, sold 24,201,920 shares (including 3,156,772 shares sold in connection with the exercise by the underwriters of their overallotment option) of common stock, par value $0.01 per share, at a price of $17.00 per share, less an underwriting discount of $1.105 per share. SHI incurred an estimated $19.8 million of offering expenses. |
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Business and Summary of Significant Accounting Policies | ' |
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 and its subsidiaries, all of which are wholly owned. | |
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, and the out-of-period adjustments recorded in the nine months ended September 30, 2013 discussed below. 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 audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012. To conform to the 2013 presentation, we reclassified certain items in the prior period. We have combined the branch real estate and centralized real estate data previously reported separately in the third quarter of 2012 due to a change in method of monitoring and assessing the credit risk of our liquidating real estate loan portfolio in the fourth quarter of 2012. | |
In our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, we made certain corrections to prior period amounts reported in our previously issued quarterly and annual consolidated financial statements and related notes related to: (1) our benefit from income taxes; (2) the allowance for finance receivable losses related to our securitized finance receivables; (3) the fair value of our net finance receivables, less allowance for finance receivable losses; and (4) the fair value disclosures of certain of our financial instruments. | |
The out-of-period adjustment related to our benefit from income taxes increased the provision for income taxes by $1.2 million for the nine months ended September 30, 2013. See Note 12 for further information on this out-of-period adjustment. | |
The disclosure of the allowance for finance receivable losses related to our securitized finance receivables at December 31, 2012, was previously incorrectly understated by $4.7 million. The parenthetical disclosure of the allowance of consolidated variable interest entities (“VIEs”) as of December 31, 2012 on our condensed consolidated balance sheet and the related VIE disclosures in Notes 3 and 9 have been corrected in this report to include the allowance for finance receivable losses on our securitized purchased credit impaired finance receivables. | |
The fair value disclosures of certain of our financial instruments at December 31, 2012 previously included the following misstatements: (1) the fair value of our net finance receivables, less allowance for finance receivable losses was understated by $177.0 million at December 31, 2012; (2) restricted cash (level 1) and escrow advance receivable (level 3) at December 31, 2012 were incorrectly excluded from the fair value disclosures of our financial instruments; (3) cash and cash equivalents in mutual funds measured at fair value on a recurring basis at December 31, 2012 incorrectly excluded mutual funds of $565.3 million; (4) restricted cash in mutual funds (level 1) measured at fair value on a recurring basis at December 31, 2012 were incorrectly excluded from the fair value disclosures of our financial instruments measured on a recurring basis; and (5) commercial mortgage loans (level 3) measured at fair value on a non-recurring basis at December 31, 2012 and related impairments recorded during 2012 were incorrectly excluded from the fair value disclosures of our financial instruments measured on a non-recurring basis. The affected fair value amounts disclosed in Note 18 have been corrected in this report. | |
In the second quarter of 2013, we recorded an out-of-period adjustment, which increased provision for finance receivable losses by $2.7 million for the nine months ended September 30, 2013. The adjustment related to the correction of the identification of certain bankrupt real estate loan accounts for consideration as troubled debt restructured (“TDR”) finance receivables. | |
In the third quarter of 2013, we recorded an out-of-period adjustment, which decreased provision for finance receivable losses by $3.8 million for the three months ended September 30, 2013. The adjustment related to the correction of certain inputs in our model supporting the TDR allowance for finance receivable losses. There was no impact for the nine months ended September 30, 2013 as the error was isolated to intra-period reporting in 2013. | |
After evaluating the quantitative and qualitative aspects of these corrections (individually and in aggregate), management has determined that our previously issued consolidated interim and annual financial statements were not materially misstated and that the out-of-period adjustments are immaterial to our estimated full year results. | |
Due to the significance of the ownership interest acquired by FCFI (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”). | |
ACCOUNTING PRONOUNCEMENTS | ' |
ACCOUNTING PRONOUNCEMENTS ADOPTED | |
Offsetting Assets and Liabilities | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”), ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities, which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, the FASB issued ASU 2013-1, Clarifying the Scope of Disclosures About Offsetting Assets and Liabilities (Topic 210), which amended the effective date for ASU 2011-11 to be effective for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods. The amendments were applied retrospectively for all prior periods presented. The adoption of this new standard did not have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
Comprehensive Income | |
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the reporting of reclassifications out of accumulated other comprehensive income or loss. The amendments require an entity to present (either on the face of the statement where net income is presented or in the notes) the effect of significant reclassifications out of accumulated other comprehensive income or loss on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments in this ASU became effective prospectively for the Company for reporting periods beginning after December 15, 2012. 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 | |
Income Taxes | |
In July 2013, the FASB issued 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 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and should be applied prospectively. The adoption of this ASU is not expected to have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
CHANGES IN ACCOUNTING POLICIES | ' |
CHANGES IN ACCOUNTING POLICIES | |
Beginning in the period ended March 31, 2013, our servicing practice was updated for the charge-off policy for personal loans in an effort to more closely align the timing of charge-offs when the Company believes a particular loan is uncollectible. We charge off to the allowance for finance receivable losses, personal loans which are greater than 180 days contractually delinquent. | |
This change in policy was considered a change in estimate in accordance with ASC 250 and incorporated prospectively into our calculation of allowance for finance receivable losses beginning with the quarter ended March 31, 2013. We recorded $13.3 million in additional charge-offs in March 2013 as a result of this change. |
Finance_Receivables_Tables
Finance Receivables (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Finance Receivables | ' | |||||||||||||
Schedule of components of net finance receivables by type | ' | |||||||||||||
Personal | Real | Retail | ||||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
September 30, 2013 | ||||||||||||||
Gross receivables* | $ | 3,455,630 | $ | 8,069,358 | $ | 129,602 | $ | 11,654,590 | ||||||
Unearned finance charges and points and fees | (515,471 | ) | (2,137 | ) | (12,804 | ) | (530,412 | ) | ||||||
Accrued finance charges | 42,704 | 43,605 | 1,090 | 87,399 | ||||||||||
Deferred origination costs | 36,943 | 291 | - | 37,234 | ||||||||||
Total | $ | 3,019,806 | $ | 8,111,117 | $ | 117,888 | $ | 11,248,811 | ||||||
December 31, 2012 | ||||||||||||||
Gross receivables | $ | 2,984,423 | $ | 8,793,531 | $ | 233,296 | $ | 12,011,250 | ||||||
Unearned finance charges and points and fees | (402,828 | ) | (5,910 | ) | (27,087 | ) | (435,825 | ) | ||||||
Accrued finance charges | 36,937 | 50,666 | 2,148 | 89,751 | ||||||||||
Deferred origination costs | 31,200 | 351 | - | 31,551 | ||||||||||
Total | $ | 2,649,732 | $ | 8,838,638 | $ | 208,357 | $ | 11,696,727 | ||||||
* Gross receivables are defined below: | ||||||||||||||
· finance receivables purchased as a performing receivable – gross finance receivables equal the unpaid principal balance (“UPB”) for interest bearing accounts and the gross remaining contractual payments for precompute accounts plus the remaining unearned discount, net of premium established at the time of purchase to reflect the finance receivable balance at its fair value; | ||||||||||||||
· finance receivables originated subsequent to the Fortress Acquisition – gross finance receivables equals the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and | ||||||||||||||
· purchased credit impaired finance receivables – gross finance receivables equals 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 | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | ||||||||||||
Real estate loans | $ | 65,201 | $ | 86,437 | ||||||||||
Retail sales finance | - | * | 78,071 | |||||||||||
Total | $ | 65,201 | $ | 164,508 | ||||||||||
* Reflects the cessation of purchases of revolving retail accounts effective January 16, 2013. | ||||||||||||||
Summary of net finance receivable by type by days delinquent | ' | |||||||||||||
Personal | Real | Retail | ||||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
September 30, 2013 | ||||||||||||||
Net finance receivables: | ||||||||||||||
60-89 days past due | $ | 26,048 | $ | 93,928 | $ | 1,705 | $ | 121,681 | ||||||
90-119 days past due | 19,375 | 63,055 | 1,094 | 83,524 | ||||||||||
120-149 days past due | 15,270 | 58,785 | 811 | 74,866 | ||||||||||
150-179 days past due | 12,261 | 38,424 | 649 | 51,334 | ||||||||||
180 days or more past due | 919 | 352,057 | 130 | 353,106 | ||||||||||
Total delinquent finance receivables | 73,873 | 606,249 | 4,389 | 684,511 | ||||||||||
Current | 2,897,643 | 7,321,444 | 110,114 | 10,329,201 | ||||||||||
30-59 days past due | 48,290 | 183,424 | 3,385 | 235,099 | ||||||||||
Total | $ | 3,019,806 | $ | 8,111,117 | $ | 117,888 | $ | 11,248,811 | ||||||
December 31, 2012 | ||||||||||||||
Net finance receivables: | ||||||||||||||
60-89 days past due | $ | 21,683 | $ | 99,472 | $ | 2,107 | $ | 123,262 | ||||||
90-119 days past due | 17,538 | 73,712 | 1,416 | 92,666 | ||||||||||
120-149 days past due | 14,050 | 57,985 | 1,171 | 73,206 | ||||||||||
150-179 days past due | 9,613 | 45,326 | 743 | 55,682 | ||||||||||
180 days or more past due | 12,107 | 382,227 | 331 | 394,665 | ||||||||||
Total delinquent finance receivables | 74,991 | 658,722 | 5,768 | 739,481 | ||||||||||
Current | 2,534,960 | 7,983,413 | 197,392 | 10,715,765 | ||||||||||
30-59 days past due | 39,781 | 196,503 | 5,197 | 241,481 | ||||||||||
Total | $ | 2,649,732 | $ | 8,838,638 | $ | 208,357 | $ | 11,696,727 | ||||||
Schedule of performing and nonperforming net finance receivables by type | ' | |||||||||||||
Personal | Real | Retail | ||||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
September 30, 2013 | ||||||||||||||
Performing | $ | 2,971,981 | $ | 7,598,796 | $ | 115,204 | $ | 10,685,981 | ||||||
Nonperforming | 47,825 | 512,321 | 2,684 | 562,830 | ||||||||||
Total | $ | 3,019,806 | $ | 8,111,117 | $ | 117,888 | $ | 11,248,811 | ||||||
December 31, 2012 | ||||||||||||||
Performing | $ | 2,596,424 | $ | 8,279,388 | $ | 204,696 | $ | 11,080,508 | ||||||
Nonperforming | 53,308 | 559,250 | 3,661 | 616,219 | ||||||||||
Total | $ | 2,649,732 | $ | 8,838,638 | $ | 208,357 | $ | 11,696,727 | ||||||
Schedule of information regarding purchased credit impaired finance receivables | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | ||||||||||||
Carrying amount, net of allowance | $ | 1,282,683 | $ | 1,373,792 | ||||||||||
Outstanding balance | $ | 1,825,077 | $ | 1,957,260 | ||||||||||
Allowance for purchased credit impaired finance receivable losses | $ | 46,003 | $ | 16,973 | ||||||||||
Schedule of changes in accretable yield for purchased credit impaired finance receivables | ' | |||||||||||||
At or for the | At or for the | At or for the | At or for the | |||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 844,018 | $ | 389,461 | $ | 624,879 | $ | 463,960 | ||||||
Accretion | (32,041 | ) | (34,768 | ) | (97,036 | ) | (96,697 | ) | ||||||
Reclassifications from nonaccretable difference (a) | 2,740 | 313,864 | 303,328 | 313,864 | ||||||||||
Disposals of finance receivables (b) | (8,337 | ) | (6,973 | ) | (24,791 | ) | (19,543 | ) | ||||||
Balance at end of period | $ | 806,380 | $ | 661,584 | $ | 806,380 | $ | 661,584 | ||||||
(a) Reclassifications from nonaccretable difference for the three and nine months ended September 30, 2013 represent the increases in accretion resulting from higher estimated undiscounted cash flows. Reclassifications from nonaccretable difference for the three and nine months ended September 30, 2012 represent the increase in accretion related to an increase in the pool yield. | ||||||||||||||
(b) Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged-off during the period. | ||||||||||||||
Schedule of information regarding TDR finance receivables | ' | |||||||||||||
Real Estate | ||||||||||||||
(dollars in thousands) | Loans | |||||||||||||
September 30, 2013 | ||||||||||||||
TDR gross finance receivables | $ | 1,260,429 | ||||||||||||
TDR net finance receivables | $ | 1,264,971 | ||||||||||||
Allowance for TDR finance receivable losses | $ | 161,464 | ||||||||||||
December 31, 2012 | ||||||||||||||
TDR gross finance receivables | $ | 802,495 | ||||||||||||
TDR net finance receivables | $ | 806,420 | ||||||||||||
Allowance for TDR finance receivable losses | $ | 92,723 | ||||||||||||
Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables | ' | |||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real Estate Loans | ||||||||||||||
TDR average net receivables | $ | 1,224,413 | $ | 590,024 | $ | 1,072,115 | $ | 451,248 | ||||||
TDR finance charges recognized | $ | 17,109 | $ | 8,572 | $ | 45,791 | $ | 18,470 | ||||||
Schedule of information regarding the new volume of the TDR finance receivables | ' | |||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real Estate Loans | ||||||||||||||
Number of TDR accounts | 1,618 | 1,634 | 5,919 | 3,610 | ||||||||||
Pre-modification TDR net finance receivables | $ | 131,969 | $ | 154,492 | $ | 467,362 | $ | 367,858 | ||||||
Post-modification TDR net finance receivables | $ | 139,830 | $ | 152,073 | $ | 488,577 | $ | 370,031 | ||||||
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 | ' | |||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real Estate Loans | ||||||||||||||
Number of TDR accounts | 377 | 126 | 796 | 408 | ||||||||||
TDR net finance receivables* | $ | 26,030 | $ | 12,416 | $ | 59,719 | $ | 47,418 | ||||||
* 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, 2013 | ||||||||||||||
Allowance for Finance Receivable Losses | ' | |||||||||||||
Schedule of changes in the allowance for finance receivable losses by finance receivable type | ' | |||||||||||||
Personal | Real | Retail | Consolidated | |||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||
Balance at beginning of period | $ | 60,250 | $ | 184,440 | $ | 920 | $ | 245,610 | ||||||
Provision for finance receivable losses (a) | 39,685 | 55,886 | 1,843 | 97,414 | ||||||||||
Charge-offs | (32,527 | ) | (32,733 | ) | (2,032 | ) | (67,292 | ) | ||||||
Recoveries | 2,135 | 1,324 | 294 | 3,753 | ||||||||||
Balance at end of period | $ | 69,543 | $ | 208,917 | $ | 1,025 | $ | 279,485 | ||||||
Three Months Ended September 30, 2012 | ||||||||||||||
Balance at beginning of period | $ | 41,431 | $ | 49,051 | $ | 1,191 | $ | 91,673 | ||||||
Provision for finance receivable losses (a) | 29,010 | 59,308 | 2,518 | 90,836 | ||||||||||
Charge-offs | (26,797 | ) | (31,432 | ) | (4,049 | ) | (62,278 | ) | ||||||
Recoveries | 7,865 | 2,545 | 2,427 | 12,837 | ||||||||||
Balance at end of period | $ | 51,509 | $ | 79,472 | $ | 2,087 | $ | 133,068 | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||||
Balance at beginning of period | $ | 66,580 | $ | 111,296 | $ | 2,260 | $ | 180,136 | ||||||
Provision for finance receivable losses (a) | 64,282 | 202,094 | (4,234 | ) | 262,142 | |||||||||
Charge-offs (b) | (106,161 | ) | (120,061 | ) | (7,338 | ) | (233,560 | ) | ||||||
Recoveries (c) | 44,842 | 15,588 | 10,337 | 70,767 | ||||||||||
Balance at end of period | $ | 69,543 | $ | 208,917 | $ | 1,025 | $ | 279,485 | ||||||
Nine Months Ended September 30, 2012 | ||||||||||||||
Balance at beginning of period | $ | 39,522 | $ | 31,471 | $ | 1,007 | $ | 72,000 | ||||||
Provision for finance receivable losses (a) | 69,731 | 148,509 | 9,190 | 227,430 | ||||||||||
Charge-offs | (82,035 | ) | (107,496 | ) | (15,974 | ) | (205,505 | ) | ||||||
Recoveries | 25,398 | 6,988 | 8,058 | 40,444 | ||||||||||
Transfers to finance receivables held for sale (d) | (1,107 | ) | - | (194 | ) | (1,301 | ) | |||||||
Balance at end of period | $ | 51,509 | $ | 79,472 | $ | 2,087 | $ | 133,068 | ||||||
(a) Components of provision for finance receivable losses on our real estate loans were as follows: | ||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real estate loans | ||||||||||||||
Provision for finance receivable losses | ||||||||||||||
Non-credit impaired finance receivables | $ | 17,808 | $ | 19,501 | $ | 62,968 | $ | 69,924 | ||||||
Purchased credit impaired finance receivables | 21,210 | 18,015 | 60,511 | 37,365 | ||||||||||
TDR finance receivables | 16,868 | 21,792 | 78,615 | 41,220 | ||||||||||
Total | $ | 55,886 | $ | 59,308 | $ | 202,094 | $ | 148,509 | ||||||
(b) Effective March 31, 2013, we charge off to the allowance for finance receivable losses for personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses for 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. | ||||||||||||||
(c) Recoveries during the nine months ended September 30, 2013 included $41.2 million ($25.4 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. | ||||||||||||||
(d) During the nine months ended September 30, 2012, we decreased the allowance for finance receivable losses as a result of the transfers of $77.8 million of finance receivables 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. | ||||||||||||||
Schedule of components of provision for finance receivable losses on real estate loans | ' | |||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real estate loans | ||||||||||||||
Provision for finance receivable losses | ||||||||||||||
Non-credit impaired finance receivables | $ | 17,808 | $ | 19,501 | $ | 62,968 | $ | 69,924 | ||||||
Purchased credit impaired finance receivables | 21,210 | 18,015 | 60,511 | 37,365 | ||||||||||
TDR finance receivables | 16,868 | 21,792 | 78,615 | 41,220 | ||||||||||
Total | $ | 55,886 | $ | 59,308 | $ | 202,094 | $ | 148,509 | ||||||
Schedule of carrying value charged-off for purchased credit impaired loans | ' | |||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Real estate loans | ||||||||||||||
Charged-off against provision for finance receivable losses: | ||||||||||||||
Purchased credit impaired finance receivables * | $ | 9,873 | $ | 9,362 | $ | 31,501 | $ | 28,712 | ||||||
* 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 | ' | |||||||||||||
Personal | Real | Retail | ||||||||||||
(dollars in thousands) | Loans | Estate Loans | Sales Finance | Total | ||||||||||
September 30, 2013 | ||||||||||||||
Allowance for finance receivable losses for finance receivables: | ||||||||||||||
Collectively evaluated for impairment | $ | 69,543 | $ | 1,450 | $ | 1,025 | $ | 72,018 | ||||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | - | 46,003 | - | 46,003 | ||||||||||
Individually evaluated for impairment (TDR finance receivables) | - | 161,464 | - | 161,464 | ||||||||||
Total | $ | 69,543 | $ | 208,917 | $ | 1,025 | $ | 279,485 | ||||||
Finance receivables: | ||||||||||||||
Collectively evaluated for impairment | $ | 3,019,806 | $ | 5,517,460 | $ | 117,888 | $ | 8,655,154 | ||||||
Purchased credit impaired finance receivables | - | 1,328,686 | - | 1,328,686 | ||||||||||
TDR finance receivables | - | 1,264,971 | - | 1,264,971 | ||||||||||
Total | $ | 3,019,806 | $ | 8,111,117 | $ | 117,888 | $ | 11,248,811 | ||||||
December 31, 2012 | ||||||||||||||
Allowance for finance receivable losses for finance receivables: | ||||||||||||||
Collectively evaluated for impairment | $ | 66,580 | $ | 1,600 | $ | 2,260 | $ | 70,440 | ||||||
Purchased credit impaired finance receivables | - | 16,973 | - | 16,973 | ||||||||||
TDR finance receivables | - | 92,723 | - | 92,723 | ||||||||||
Total | $ | 66,580 | $ | 111,296 | $ | 2,260 | $ | 180,136 | ||||||
Finance receivables: | ||||||||||||||
Collectively evaluated for impairment | $ | 2,649,732 | $ | 6,641,453 | $ | 208,357 | $ | 9,499,542 | ||||||
Purchased credit impaired finance receivables | - | 1,390,765 | - | 1,390,765 | ||||||||||
TDR finance receivables | - | 806,420 | - | 806,420 | ||||||||||
Total | $ | 2,649,732 | $ | 8,838,638 | $ | 208,357 | $ | 11,696,727 |
Finance_Receivables_Held_for_S1
Finance Receivables Held for Sale (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Finance Receivables Held for Sale | ' | |||||||||||||
Schedule of activity in reserve for sales recourse obligations | ' | |||||||||||||
At or for the | At or for the | At or for the | At or for the | |||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 4,766 | $ | 1,765 | $ | 4,863 | $ | 1,648 | ||||||
Provision for recourse obligations | - | - | 322 | 117 | ||||||||||
Recourse losses | (42 | ) | (25 | ) | (461 | ) | (25 | ) | ||||||
Balance at end of period | $ | 4,724 | $ | 1,740 | $ | 4,724 | $ | 1,740 |
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | |||||||||||||||||||
Cost/ | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
(dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Fixed maturity investment securities: | ||||||||||||||||||||
Bonds: | ||||||||||||||||||||
U.S. government and government sponsored entities | $ | 73,925 | $ | 1,027 | $ | (169 | ) | $ | 74,783 | |||||||||||
Obligations of states, municipalities, and political subdivisions | 92,920 | 2,215 | (161 | ) | 94,974 | |||||||||||||||
Corporate debt | 218,569 | 6,342 | (2,271 | ) | 222,640 | |||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||
Residential mortgage-backed securities (“RMBS”) | 134,112 | 6,481 | (1,457 | ) | 139,136 | |||||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 19,215 | 1,205 | (206 | ) | 20,214 | |||||||||||||||
Collateralized debt obligations (“CDO”)/ Asset-backed securities (“ABS”) | 12,884 | 677 | (22 | ) | 13,539 | |||||||||||||||
Total | 551,625 | 17,947 | (4,286 | ) | 565,286 | |||||||||||||||
Other long-term investments* | 1,395 | 46 | (66 | ) | 1,375 | |||||||||||||||
Common stocks | 964 | - | (14 | ) | 950 | |||||||||||||||
Total | $ | 553,984 | $ | 17,993 | $ | (4,366 | ) | $ | 567,611 | |||||||||||
December 31, 2012 | ||||||||||||||||||||
Fixed maturity investment securities: | ||||||||||||||||||||
Bonds: | ||||||||||||||||||||
U.S. government and government sponsored entities | $ | 33,955 | $ | 2,487 | $ | - | $ | 36,442 | ||||||||||||
Obligations of states, municipalities, and political subdivisions | 135,476 | 4,997 | (249 | ) | 140,224 | |||||||||||||||
Corporate debt | 278,555 | 10,514 | (1,380 | ) | 287,689 | |||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||
RMBS | 164,308 | 7,948 | (47 | ) | 172,209 | |||||||||||||||
CMBS | 11,964 | 1,152 | (64 | ) | 13,052 | |||||||||||||||
CDO/ABS | 15,358 | 1,214 | (4 | ) | 16,568 | |||||||||||||||
Total | 639,616 | 28,312 | (1,744 | ) | 666,184 | |||||||||||||||
Other long-term investments* | 1,404 | - | (24 | ) | 1,380 | |||||||||||||||
Common stocks | 974 | 30 | (29 | ) | 975 | |||||||||||||||
Total | $ | 641,994 | $ | 28,342 | $ | (1,797 | ) | $ | 668,539 | |||||||||||
* Excludes interest in a limited partnership that we account for using the equity method ($0.6 million at September 30, 2013 and December 31, 2012). | ||||||||||||||||||||
Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | ' | |||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(dollars in thousands) | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Bonds: | ||||||||||||||||||||
U.S. government and government sponsored entities | $ | 19,968 | $ | (169 | ) | $ | - | $ | - | $ | 19,968 | $ | (169 | ) | ||||||
Obligations of states, municipalities, and political subdivisions | 2,603 | (161 | ) | - | - | 2,603 | (161 | ) | ||||||||||||
Corporate debt | 42,919 | (1,867 | ) | 8,712 | (404 | ) | 51,631 | (2,271 | ) | |||||||||||
RMBS | 39,911 | (1,457 | ) | 31 | - | 39,942 | (1,457 | ) | ||||||||||||
CMBS | 7,810 | (206 | ) | - | 7,810 | (206 | ) | |||||||||||||
CDO/ABS | 2,716 | (22 | ) | - | 2,716 | (22 | ) | |||||||||||||
Total | 115,927 | (3,882 | ) | 8,743 | (404 | ) | 124,670 | (4,286 | ) | |||||||||||
Other long-term investments | 135 | (66 | ) | - | - | 135 | (66 | ) | ||||||||||||
Common stocks | 100 | (14 | ) | - | - | 100 | (14 | ) | ||||||||||||
Total | $ | 116,162 | $ | (3,962 | ) | $ | 8,743 | $ | (404 | ) | $ | 124,905 | $ | (4,366 | ) | |||||
December 31, 2012 | ||||||||||||||||||||
Bonds: | ||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | $ | 1,569 | $ | (4 | ) | $ | 9,646 | $ | (245 | ) | $ | 11,215 | $ | (249 | ) | |||||
Corporate debt | 23,673 | (510 | ) | 49,690 | (870 | ) | 73,363 | (1,380 | ) | |||||||||||
RMBS | 29,101 | (46 | ) | 46 | (1 | ) | 29,147 | (47 | ) | |||||||||||
CMBS | 712 | (31 | ) | 4,913 | (33 | ) | 5,625 | (64 | ) | |||||||||||
CDO/ABS | 792 | (4 | ) | - | - | 792 | (4 | ) | ||||||||||||
Total | 55,847 | (595 | ) | 64,295 | (1,149 | ) | 120,142 | (1,744 | ) | |||||||||||
Other long-term investments | 178 | (23 | ) | 8 | (1 | ) | 186 | (24 | ) | |||||||||||
Common stocks | - | - | 85 | (29 | ) | 85 | (29 | ) | ||||||||||||
Total | $ | 56,025 | $ | (618 | ) | $ | 64,388 | $ | (1,179 | ) | $ | 120,413 | $ | (1,797 | ) | |||||
Schedule of components of other-than-temporary impairment charges on investment securities | ' | |||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Total other-than-temporary impairment losses | $ | - | $ | (254 | ) | $ | (26 | ) | $ | (906 | ) | |||||||||
Portion of loss recognized in accumulated other comprehensive loss | - | - | - | - | ||||||||||||||||
Net impairment losses recognized in net loss | $ | - | $ | (254 | ) | $ | (26 | ) | $ | (906 | ) | |||||||||
Schedule of changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired investment securities | ' | |||||||||||||||||||
At or for the | At or for the | At or for the | At or for the | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Balance at beginning of period | $ | 1,523 | $ | 4,377 | $ | 1,650 | $ | 3,725 | ||||||||||||
Additions: | ||||||||||||||||||||
Due to other-than-temporary impairments: | ||||||||||||||||||||
Impairment previously recognized | - | 254 | 26 | 906 | ||||||||||||||||
Reductions: | ||||||||||||||||||||
Realized due to dispositions with no prior intention to sell | - | (2,962 | ) | (153 | ) | (2,962 | ) | |||||||||||||
Balance at end of period | $ | 1,523 | $ | 1,669 | $ | 1,523 | $ | 1,669 | ||||||||||||
Schedule of fair values of investment securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains (losses) | ' | |||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Fair value | $ | 37,160 | $ | 33,880 | $ | 142,693 | $ | 65,401 | ||||||||||||
Realized gains | $ | 229 | $ | 564 | $ | 2,452 | $ | 1,054 | ||||||||||||
Realized losses | (219 | ) | (910 | ) | (390 | ) | (1,245 | ) | ||||||||||||
Net realized gains (losses) | $ | 10 | $ | (346 | ) | $ | 2,062 | $ | (191 | ) | ||||||||||
Schedule of contractual maturities of fixed-maturity investment securities | ' | |||||||||||||||||||
(dollars in thousands) | Fair | Amortized | ||||||||||||||||||
September 30, 2013 | Value | Cost | ||||||||||||||||||
Fixed maturities, excluding mortgage-backed securities: | ||||||||||||||||||||
Due in 1 year or less | $ | 15,307 | $ | 15,240 | ||||||||||||||||
Due after 1 year through 5 years | 192,759 | 187,852 | ||||||||||||||||||
Due after 5 years through 10 years | 131,286 | 130,914 | ||||||||||||||||||
Due after 10 years | 53,045 | 51,408 | ||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 172,889 | 166,211 | ||||||||||||||||||
Total | $ | 565,286 | $ | 551,625 |
Transactions_with_Affiliates_o1
Transactions with Affiliates of Fortress or AIG (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Transactions with Affiliates of Fortress or AIG | ' | |||||||||||||
Schedule of subservicing fees and refinancing concessions | ' | |||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Subservicing fees | $ | 2,132 | $ | 2,380 | $ | 6,556 | $ | 7,525 | ||||||
Refinancing concessions | $ | - | $ | 216 | $ | 265 | $ | 4,177 |
Longterm_Debt_Tables
Long-term Debt (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Long-term Debt | ' | ||||||||||||||||||||||
Schedule of principal maturities of long-term debt by type of debt | ' | ||||||||||||||||||||||
Medium | Euro | Secured | Junior | ||||||||||||||||||||
Retail | Term | Denominated | Term | Subordinated | |||||||||||||||||||
(dollars in thousands) | Notes | Notes (a) | Note (b) | Loan (c) | Securitizations | Debt | Total | ||||||||||||||||
Interest rates (d) | 4.95%-7.50% | 5.40%-8.25% | 4.125 | % | 4.75%-5.50% | 1.27%-6.00% | 6 | % | |||||||||||||||
Fourth quarter 2013 | $ | 2,903 | $ | - | $ | 416,637 | $ | - | $ | - | $ | - | $ | 419,540 | |||||||||
First quarter 2014 | 1,115 | - | - | - | - | - | 1,115 | ||||||||||||||||
Second quarter 2014 | 10,892 | - | - | - | - | - | 10,892 | ||||||||||||||||
Third quarter 2014 | 8,569 | - | - | - | - | - | 8,569 | ||||||||||||||||
Remainder of 2014 | 335,486 | - | - | - | - | - | 335,486 | ||||||||||||||||
2015 | 47,254 | 750,000 | - | - | - | - | 797,254 | ||||||||||||||||
2016 | - | 375,000 | - | - | - | - | 375,000 | ||||||||||||||||
2017 | - | 2,416,337 | - | 550,000 | - | - | 2,966,337 | ||||||||||||||||
2018-2067 | - | 1,250,000 | - | 750,000 | - | 350,000 | 2,350,000 | ||||||||||||||||
Securitizations (e) | - | - | - | - | 5,318,068 | - | 5,318,068 | ||||||||||||||||
Total principal maturities | $ | 406,219 | $ | 4,791,337 | $ | 416,637 | $ | 1,300,000 | $ | 5,318,068 | $ | 350,000 | $ | 12,582,261 | |||||||||
Total carrying amount | $ | 382,061 | $ | 4,148,608 | $ | 432,245 | $ | 1,303,739 | $ | 5,302,555 | $ | 171,565 | $ | 11,740,773 | |||||||||
(a) Medium-term notes at September 30, 2013 included aggregate principal amounts of $300 million of Senior Notes issued in May 2013 and $950 million of Senior Notes issued in September 2013 of which $700 million were exchanged for medium-term notes due 2017. | |||||||||||||||||||||||
(b) Euro denominated note includes a €323.4 million note, shown here at the U.S. dollar equivalent at time of issuance. | |||||||||||||||||||||||
(c) Our secured term loan is issued by wholly owned Company subsidiaries and guaranteed by SFC and the Subsidiary Guarantors. | |||||||||||||||||||||||
(d) The interest rates shown are the range of contractual rates in effect at September 30, 2013. | |||||||||||||||||||||||
(e) Securitizations are not included in above maturities by period due to their variable monthly repayments. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Variable Interest Entities | ' | |||||||
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | ' | |||||||
September 30, | December 31, | |||||||
(dollars in thousands) | 2013 | 2012 | ||||||
Assets | ||||||||
Finance receivables: | ||||||||
Personal loans | $ | 1,696,019 | $ | - | ||||
Real estate loans | 5,348,642 | 3,977,412 | ||||||
Allowance for finance receivable losses | 87,784 | 14,690 | ||||||
Restricted cash | 332,066 | 104,853 | ||||||
Liabilities | ||||||||
Long-term debt | $ | 5,302,555 | $ | 2,978,338 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Schedule of fair value of derivative instruments presented on a gross basis | ' | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
(dollars in thousands) | Notional | Derivative | Derivative | Notional | Derivative | Derivative | ||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||
Non-Designated Hedging Instruments | ||||||||||||||||||||
Cross currency interest rate | $ | - | $ | - | $ | - | $ | 416,636 | $ | 26,699 | $ | - | ||||||||
Schedule of amount of gain (loss) for cash flow hedges recognized in accumulated other comprehensive income or loss, reclassified from accumulated other comprehensive income or loss into other revenues - other (effective portion), and recognized in other revenues - other (ineffective portion) | ' | |||||||||||||||||||
From AOCI(L) (a) to | Recognized | |||||||||||||||||||
Other | in Other | |||||||||||||||||||
Revenues - | Interest | Revenues - | ||||||||||||||||||
(dollars in thousands) | AOCI(L) | Other | Expense | Earnings (b) | Other | |||||||||||||||
Three Months Ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Cross currency interest rate | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Three Months Ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Cross currency interest rate | $ | - | $ | 293 | $ | 899 | $ | 1,192 | $ | - | ||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Cross currency interest rate | $ | - | $ | - | $ | 160 | $ | 160 | $ | - | ||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Cross currency interest rate | $ | -16,987 | $ | -12,453 | $ | 975 | $ | -11,478 | $ | -426 | ||||||||||
(a) Accumulated other comprehensive income (loss). | ||||||||||||||||||||
(b) Represents the total amounts reclassified from accumulated other comprehensive income or loss to other revenues – other and to interest expense for cash flow hedges as disclosed on our condensed consolidated statement of comprehensive income (loss). | ||||||||||||||||||||
Schedule of amounts recognized in other revenues - other for non-designated hedging instruments | ' | |||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Non-Designated Hedging Instruments | ||||||||||||||||||||
Cross currency interest rate | $ | 986 | $ | -19,244 | $ | -3,376 | $ | -23,825 | ||||||||||||
Schedule of derivative adjustments included in other revenues - other | ' | |||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Mark to market gains (losses) | $ | 6,260 | $ | (6,364 | ) | $ | (8,244 | ) | $ | (33,687 | ) | |||||||||
Net interest income | 1,701 | 4,955 | 9,161 | 14,575 | ||||||||||||||||
Credit valuation adjustment gains (losses) | 11 | 211 | 50 | (3,614 | ) | |||||||||||||||
Ineffectiveness losses | - | - | - | (426 | ) | |||||||||||||||
Other | (292 | ) | (1,258 | ) | (292 | ) | (517 | ) | ||||||||||||
Total | $ | 7,680 | $ | (2,456 | ) | $ | 675 | $ | (23,669 | ) |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) | ' | ||||||||||||||||
Total | |||||||||||||||||
Accumulated | |||||||||||||||||
Unrealized | Unrealized | Retirement | Foreign | Other | |||||||||||||
Gains (Losses) | Gains (Losses) | Plan | Currency | Comprehensive | |||||||||||||
Investment | Cash Flow | Liabilities | Translation | Income | |||||||||||||
(dollars in thousands) | Securities | Hedges | Adjustments | Adjustments | (Loss) | ||||||||||||
Three Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance at beginning of period | $ | 9,079 | $ | - | $ | 8,120 | $ | 6,221 | $ | 23,420 | |||||||
Other comprehensive loss before reclassifications | (215 | ) | - | - | (2,056 | ) | (2,271 | ) | |||||||||
Reclassification adjustments from accumulated other comprehensive income | (6 | ) | - | - | - | (6 | ) | ||||||||||
Balance at end of period | $ | 8,858 | $ | - | $ | 8,120 | $ | 4,165 | $ | 21,143 | |||||||
Three Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Balance at beginning of period | $ | 12,854 | $ | 1,511 | $ | (21,828 | ) | $ | 1,365 | $ | (6,098 | ) | |||||
Other comprehensive income before reclassifications | 2,510 | - | - | 3,067 | 5,577 | ||||||||||||
Reclassification adjustments from accumulated other comprehensive income | 390 | (774 | ) | - | - | (384 | ) | ||||||||||
Balance at end of period | $ | 15,754 | $ | 737 | $ | (21,828 | ) | $ | 4,432 | $ | (905 | ) | |||||
Nine Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance at beginning of period | $ | 17,255 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 29,606 | |||||||
Other comprehensive income (loss) before reclassifications | (7,074 | ) | - | - | 38 | (7,036 | ) | ||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1,323 | ) | (104 | ) | - | - | (1,427 | ) | |||||||||
Balance at end of period | $ | 8,858 | $ | - | $ | 8,120 | $ | 4,165 | $ | 21,143 | |||||||
Nine Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Balance at beginning of period | $ | 5,213 | $ | 4,318 | $ | (35,221 | ) | $ | 152 | $ | (25,538 | ) | |||||
Other comprehensive income (loss) before reclassifications | 9,918 | (11,042 | ) | 13,393 | 4,280 | 16,549 | |||||||||||
Reclassification adjustments from accumulated other comprehensive income | 623 | 7,461 | - | - | 8,084 | ||||||||||||
Balance at end of period | $ | 15,754 | $ | 737 | $ | (21,828 | ) | $ | 4,432 | $ | (905 | ) | |||||
Schedule of reclassification adjustments from accumulated other comprehensive income (loss) | ' | ||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Unrealized gains (losses) on investment securities: | |||||||||||||||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | $ | 10 | $ | (601 | ) | $ | 2,036 | $ | (959 | ) | |||||||
Income tax effect | (4 | ) | 211 | (713 | ) | 336 | |||||||||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | 6 | (390 | ) | 1,323 | (623 | ) | |||||||||||
Unrealized gains (losses) on cash flow hedges: | |||||||||||||||||
Reclassification from accumulated other comprehensive income (loss) to interest expense, before taxes | - | 899 | 160 | 975 | |||||||||||||
Reclassification from accumulated other comprehensive income (loss) to other revenues - other, before taxes | - | 293 | - | (12,453 | ) | ||||||||||||
Income tax effect | - | (418 | ) | (56 | ) | 4,017 | |||||||||||
Reclassification from accumulated other comprehensive income (loss) to interest expense and other revenues - other, net of taxes | - | 774 | 104 | (7,461 | ) | ||||||||||||
Total | $ | 6 | $ | 384 | $ | 1,427 | $ | (8,084 | ) |
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring | ' | ||||||||||||||||
Schedule of restructuring expenses and related asset impairment and other expenses by business segment | ' | ||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Consolidated | ||||||||||||
Total | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Restructuring expenses | $ | 15,634 | $ | 229 | $ | 818 | $ | 6,822 | $ | 23,503 | |||||||
Schedule of changes in restructuring liability | ' | ||||||||||||||||
(dollars in thousands) | Severance | Contract | Asset | Other Exit | Total | ||||||||||||
Expenses | Termination | Writedowns | Expenses* | Restructuring | |||||||||||||
Expenses | Expenses | ||||||||||||||||
Three Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance at beginning of period | $ | - | $ | 113 | $ | - | $ | - | $ | 113 | |||||||
Amounts paid | - | (44 | ) | - | - | (44 | ) | ||||||||||
Balance at end of period | $ | - | $ | 69 | $ | - | $ | - | $ | 69 | |||||||
Three Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Balance at beginning of period | $ | 2,168 | $ | 1,609 | $ | - | $ | 397 | $ | 4,174 | |||||||
Amounts paid | (1,583 | ) | (885 | ) | - | (136 | ) | (2,604 | ) | ||||||||
Balance at end of period | $ | 585 | $ | 724 | $ | - | $ | 261 | $ | 1,570 | |||||||
Nine Months Ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Balance at beginning of period | $ | 56 | $ | 365 | $ | - | $ | - | $ | 421 | |||||||
Amounts paid | (56 | ) | (296 | ) | - | - | (352 | ) | |||||||||
Balance at end of period | $ | - | $ | 69 | $ | - | $ | - | $ | 69 | |||||||
Nine Months Ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Balance at beginning of period | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
Amounts charged to expense | 11,600 | 5,840 | 5,246 | 817 | 23,503 | ||||||||||||
Amounts paid | (11,015 | ) | (5,116 | ) | - | (756 | ) | (16,887 | ) | ||||||||
Non-cash expenses | - | - | (5,246 | ) | 200 | (5,046 | ) | ||||||||||
Balance at end of period | $ | 585 | $ | 724 | $ | - | $ | 261 | $ | 1,570 | |||||||
* Primarily includes removal expenses for branch furniture and signs and fees for outplacement services. Also includes the impairment of the market value adjustment on leased branch offices from the Fortress Acquisition. |
Benefit_Plans_Tables
Benefit Plans (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Benefit Plans | ' | |||||||||||||
Schedule of components of net periodic benefit cost | ' | |||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||
Ended | Ended | Ended | Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Pension | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | - | $ | 3,728 | $ | - | $ | 11,852 | ||||||
Interest cost | 3,589 | 4,790 | 10,769 | 14,345 | ||||||||||
Expected return on assets | (3,874 | ) | (5,159 | ) | (11,622 | ) | (15,530 | ) | ||||||
Amortization of net loss | 12 | 23 | 35 | 296 | ||||||||||
Net periodic benefit cost | $ | (273 | ) | $ | 3,382 | $ | (818 | ) | $ | 10,963 | ||||
Postretirement | ||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||
Service cost | $ | 81 | $ | 76 | $ | 242 | $ | 234 | ||||||
Interest cost | 64 | 71 | 193 | 214 | ||||||||||
Curtailment gain | - | - | - | (110 | ) | |||||||||
Net periodic benefit cost | $ | 145 | $ | 147 | $ | 435 | $ | 338 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||
Schedule of information about the Company's segments as well as reconciliations to condensed consolidated financial statement amounts | ' | ||||||||||||||||||||||
Total | |||||||||||||||||||||||
Historical | Push-down | ||||||||||||||||||||||
Accounting | Accounting | Consolidated | |||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Basis | Adjustments | Total | ||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Finance charges | $ | 188,294 | $ | - | $ | 168,872 | $ | 10,001 | $ | 367,167 | $ | 50,460 | $ | 417,627 | |||||||||
Interest expense | 38,260 | - | 129,309 | 3,329 | 170,898 | 34,138 | 205,036 | ||||||||||||||||
Net interest income | 150,034 | - | 39,563 | 6,672 | 196,269 | 16,322 | 212,591 | ||||||||||||||||
Provision for finance receivable losses | 38,111 | - | 42,863 | 2,392 | 83,366 | 14,048 | 97,414 | ||||||||||||||||
Net interest income after provision for finance receivable losses | 111,923 | - | (3,300 | ) | 4,280 | 112,903 | 2,274 | 115,177 | |||||||||||||||
Other revenues: | |||||||||||||||||||||||
Insurance | - | 38,266 | - | 18 | 38,284 | (7 | ) | 38,277 | |||||||||||||||
Investment | - | 8,308 | - | - | 8,308 | (1,552 | ) | 6,756 | |||||||||||||||
Intersegment - insurance commissions | 15,086 | (15,097 | ) | 42 | (31 | ) | - | - | - | ||||||||||||||
Net loss on repurchases and repayments of debt | (2,892 | ) | - | (17,175 | ) | (705 | ) | (20,772 | ) | (13,731 | ) | (34,503 | ) | ||||||||||
Other | 493 | 2,426 | (1,841 | ) | 4,402 | 5,480 | 34 | 5,514 | |||||||||||||||
Total other revenues | 12,687 | 33,903 | (18,974 | ) | 3,684 | 31,300 | (15,256 | ) | 16,044 | ||||||||||||||
Other expenses: | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Salaries and benefits | 58,593 | 7,285 | 7,551 | 136,249 | 209,678 | (53 | ) | 209,625 | |||||||||||||||
Other operating expenses | 30,867 | 3,288 | 14,785 | 2,067 | 51,007 | 1,103 | 52,110 | ||||||||||||||||
Insurance losses and loss adjustment expenses | - | 16,849 | - | - | 16,849 | (299 | ) | 16,550 | |||||||||||||||
Total other expenses | 89,460 | 27,422 | 22,336 | 138,316 | 277,534 | 751 | 278,285 | ||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 35,150 | $ | 6,481 | $ | (44,610 | ) | $ | (130,352 | ) | $ | (133,331 | ) | $ | (13,733 | ) | $ | (147,064 | ) | ||||
Total | |||||||||||||||||||||||
Historical | Push-down | ||||||||||||||||||||||
Accounting | Accounting | Consolidated | |||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Basis | Adjustments | Total | ||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Finance charges | $ | 149,333 | $ | - | $ | 198,164 | $ | 22,603 | $ | 370,100 | $ | 46,755 | $ | 416,855 | |||||||||
Finance receivables held for sale originated as held for investment | - | - | 344 | - | 344 | 2 | 346 | ||||||||||||||||
Total interest income | 149,333 | - | 198,508 | 22,603 | 370,444 | 46,757 | 417,201 | ||||||||||||||||
Interest expense | 35,434 | - | 165,303 | 7,271 | 208,008 | 59,077 | 267,085 | ||||||||||||||||
Net interest income | 113,899 | - | 33,205 | 15,332 | 162,436 | (12,320 | ) | 150,116 | |||||||||||||||
Provision for finance receivable losses | 17,633 | - | (107,306 | ) | 2,663 | (87,010 | ) | 177,846 | 90,836 | ||||||||||||||
Net interest income after provision for finance receivable losses | 96,266 | - | 140,511 | 12,669 | 249,446 | (190,166 | ) | 59,280 | |||||||||||||||
Other revenues: | |||||||||||||||||||||||
Insurance | - | 31,718 | - | 23 | 31,741 | (22 | ) | 31,719 | |||||||||||||||
Investment | - | 7,976 | - | - | 7,976 | (2,229 | ) | 5,747 | |||||||||||||||
Intersegment - insurance commissions | 10,576 | (10,547 | ) | 29 | (58 | ) | - | - | - | ||||||||||||||
Net gain (loss) on repurchases and repayments of debt | 3,234 | - | 7,565 | 776 | 11,575 | (22,245 | ) | (10,670 | ) | ||||||||||||||
Other | (1,980 | ) | 1,543 | (13,143 | ) | 5,757 | (7,823 | ) | 9,676 | 1,853 | |||||||||||||
Total other revenues | 11,830 | 30,690 | (5,549 | ) | 6,498 | 43,469 | (14,820 | ) | 28,649 | ||||||||||||||
Other expenses: | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Salaries and benefits | 60,970 | 2,890 | 7,052 | 7,334 | 78,246 | (124 | ) | 78,122 | |||||||||||||||
Other operating expenses | 24,585 | 2,097 | 14,570 | 23,988 | 65,240 | 6,534 | 71,774 | ||||||||||||||||
Insurance losses and loss adjustment expenses | - | 15,360 | - | - | 15,360 | (208 | ) | 15,152 | |||||||||||||||
Total other expenses | 85,555 | 20,347 | 21,622 | 31,322 | 158,846 | 6,202 | 165,048 | ||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 22,541 | $ | 10,343 | $ | 113,340 | $ | (12,155 | ) | $ | 134,069 | $ | (211,188 | ) | $ | (77,119 | ) | ||||||
Total | |||||||||||||||||||||||
Historical | Push-down | ||||||||||||||||||||||
Accounting | Accounting | Consolidated | |||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Basis | Adjustments | Total | ||||||||||||||||
At or for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Finance charges | $ | 519,315 | $ | - | $ | 529,446 | $ | 37,631 | $ | 1,086,392 | $ | 149,091 | $ | 1,235,483 | |||||||||
Interest expense | 111,399 | - | 418,051 | 12,198 | 541,648 | 105,284 | 646,932 | ||||||||||||||||
Net interest income | 407,916 | - | 111,395 | 25,433 | 544,744 | 43,807 | 588,551 | ||||||||||||||||
Provision for finance receivable losses | 52,126 | - | 193,391 | (3,356 | ) | 242,161 | 19,981 | 262,142 | |||||||||||||||
Net interest income after provision for finance receivable losses | 355,790 | - | (81,996 | ) | 28,789 | 302,583 | 23,826 | 326,409 | |||||||||||||||
Other revenues: | |||||||||||||||||||||||
Insurance | - | 107,114 | - | 58 | 107,172 | (28 | ) | 107,144 | |||||||||||||||
Investment | - | 31,054 | - | - | 31,054 | (4,763 | ) | 26,291 | |||||||||||||||
Intersegment - insurance commissions | 43,296 | (43,302 | ) | 100 | (94 | ) | - | - | - | ||||||||||||||
Net gain (loss) on repurchases and repayments of debt | (4,391 | ) | - | (36,775 | ) | (977 | ) | (42,143 | ) | 7,585 | (34,558 | ) | |||||||||||
Other | 1,256 | 6,797 | (1,372 | ) | 14,327 | 21,008 | (134 | ) | 20,874 | ||||||||||||||
Total other revenues | 40,161 | 101,663 | (38,047 | ) | 13,314 | 117,091 | 2,660 | 119,751 | |||||||||||||||
Other expenses: | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Salaries and benefits | 182,051 | 11,402 | 20,541 | 149,329 | 363,323 | (160 | ) | 363,163 | |||||||||||||||
Other operating expenses | 89,642 | 8,369 | 43,431 | 6,174 | 147,616 | 3,418 | 151,034 | ||||||||||||||||
Insurance losses and loss adjustment expenses | - | 48,373 | - | - | 48,373 | (723 | ) | 47,650 | |||||||||||||||
Total other expenses | 271,693 | 68,144 | 63,972 | 155,503 | 559,312 | 2,535 | 561,847 | ||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 124,258 | $ | 33,519 | $ | (184,015 | ) | $ | (113,400 | ) | $ | (139,638 | ) | $ | 23,951 | $ | (115,687 | ) | |||||
Assets | $ | 3,075,404 | $ | 913,440 | $ | 8,762,800 | $ | 1,801,248 | $ | 14,552,892 | $ | (633,464 | ) | $ | 13,919,428 | ||||||||
Total | |||||||||||||||||||||||
Historical | Push-down | ||||||||||||||||||||||
Accounting | Accounting | Consolidated | |||||||||||||||||||||
(dollars in thousands) | Consumer | Insurance | Real Estate | Other | Basis | Adjustments | Total | ||||||||||||||||
At or for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Finance charges | $ | 429,564 | $ | - | $ | 619,312 | $ | 82,976 | $ | 1,131,852 | $ | 138,114 | $ | 1,269,966 | |||||||||
Finance receivables held for sale originated as held for investment | - | - | 2,734 | - | 2,734 | 6 | 2,740 | ||||||||||||||||
Total interest income | 429,564 | - | 622,046 | 82,976 | 1,134,586 | 138,120 | 1,272,706 | ||||||||||||||||
Interest expense | 102,129 | - | 508,368 | 27,398 | 637,895 | 185,439 | 823,334 | ||||||||||||||||
Net interest income | 327,435 | - | 113,678 | 55,578 | 496,691 | (47,319 | ) | 449,372 | |||||||||||||||
Provision for finance receivable losses | 46,471 | - | (25,488 | ) | 7,196 | 28,179 | 199,251 | 227,430 | |||||||||||||||
Net interest income after provision for finance receivable losses | 280,964 | - | 139,166 | 48,382 | 468,512 | (246,570 | ) | 221,942 | |||||||||||||||
Other revenues: | |||||||||||||||||||||||
Insurance | - | 93,050 | - | 84 | 93,134 | (92 | ) | 93,042 | |||||||||||||||
Investment | - | 28,226 | - | - | 28,226 | (6,848 | ) | 21,378 | |||||||||||||||
Intersegment - insurance commissions | 29,757 | (30,045 | ) | 65 | 223 | - | - | - | |||||||||||||||
Net gain (loss) on repurchases and repayments of debt | 5,881 | - | 13,755 | 1,412 | 21,048 | (32,798 | ) | (11,750 | ) | ||||||||||||||
Other | (2,250 | ) | 3,173 | (47,873 | ) | 15,969 | (30,981 | ) | 11,777 | (19,204 | ) | ||||||||||||
Total other revenues | 33,388 | 94,404 | (34,053 | ) | 17,688 | 111,427 | (27,961 | ) | 83,466 | ||||||||||||||
Other expenses: | |||||||||||||||||||||||
Operating expenses: | 185,261 | 8,660 | 21,845 | 25,731 | 241,497 | (383 | ) | 241,114 | |||||||||||||||
Salaries and benefits | |||||||||||||||||||||||
Other operating expenses | 88,691 | 8,215 | 59,224 | 48,669 | 204,799 | 9,358 | 214,157 | ||||||||||||||||
Restructuring expenses | 15,634 | 229 | 818 | 6,822 | 23,503 | - | 23,503 | ||||||||||||||||
Insurance losses and loss adjustment expenses | - | 43,076 | - | - | 43,076 | (774 | ) | 42,302 | |||||||||||||||
Total other expenses | 289,586 | 60,180 | 81,887 | 81,222 | 512,875 | 8,201 | 521,076 | ||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 24,766 | $ | 34,224 | $ | 23,226 | $ | (15,152 | ) | $ | 67,064 | $ | (282,732 | ) | $ | (215,668 | ) | ||||||
Assets | $ | 2,536,917 | $ | 957,558 | $ | 9,966,285 | $ | 2,444,705 | $ | 15,905,465 | $ | (848,860 | ) | $ | 15,056,605 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||
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 | ' | ||||||||||||||||||||||
Fair Value Measurements Using | Total | Total | |||||||||||||||||||||
Fair | Carrying | ||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Value | Value | ||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,048,751 | $ | - | $ | - | $ | 1,048,751 | $ | 1,048,751 | |||||||||||||
Investment securities | 100 | 541,676 | 26,431 | 568,207 | 568,207 | ||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | - | - | 11,097,113 | 11,097,113 | 10,969,326 | ||||||||||||||||||
Note receivable from parent | - | 537,989 | - | 537,989 | 537,989 | ||||||||||||||||||
Restricted cash | 346,631 | - | - | 346,631 | 346,631 | ||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Commercial mortgage loans | - | - | 94,885 | 94,885 | 102,798 | ||||||||||||||||||
Escrow advance receivable | - | - | 19,674 | 19,674 | 19,674 | ||||||||||||||||||
Receivable from parent and affiliates | - | 17,664 | - | 17,664 | 17,664 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Long-term debt | $ | - | $ | 12,694,404 | $ | - | $ | 12,694,404 | $ | 11,740,773 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,357,212 | $ | - | $ | - | $ | 1,357,212 | $ | 1,357,212 | |||||||||||||
Investment securities | 255 | 639,148 | 29,767 | 669,170 | 669,170 | ||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | - | - | 11,608,720 | 11,608,720 | 11,516,591 | ||||||||||||||||||
Note receivable from parent | - | 537,989 | - | 537,989 | 537,989 | ||||||||||||||||||
Restricted cash | 113,703 | - | - | 113,703 | 113,703 | ||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Commercial mortgage loans | - | - | 99,933 | 99,933 | 110,398 | ||||||||||||||||||
Cross currency interest rate derivative | - | 26,699 | - | 26,699 | 26,699 | ||||||||||||||||||
Escrow advance receivable | - | - | 18,520 | 18,520 | 18,520 | ||||||||||||||||||
Receivable from parent and affiliates | - | 16,196 | - | 16,196 | 16,196 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Long-term debt | $ | - | $ | 12,912,712 | $ | - | $ | 12,912,712 | $ | 12,454,316 | |||||||||||||
Payable to affiliate | - | 30,750 | - | 30,750 | 30,750 | ||||||||||||||||||
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 | ' | ||||||||||||||||||||||
Fair Value Measurements Using | Total Carried | ||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | At Fair Value | |||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents in mutual funds | $ | 264,135 | $ | - | $ | - | $ | 264,135 | |||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
U.S. government and government sponsored entities | - | 74,783 | - | 74,783 | |||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | - | 94,974 | - | 94,974 | |||||||||||||||||||
Corporate debt | - | 207,550 | 15,090 | 222,640 | |||||||||||||||||||
RMBS | - | 139,051 | 85 | 139,136 | |||||||||||||||||||
CMBS | - | 20,212 | 2 | 20,214 | |||||||||||||||||||
CDO/ABS | - | 5,106 | 8,433 | 13,539 | |||||||||||||||||||
Total | - | 541,676 | 23,610 | 565,286 | |||||||||||||||||||
Other long-term investments (a) | - | - | 1,375 | 1,375 | |||||||||||||||||||
Common stocks (b) | 100 | - | - | 100 | |||||||||||||||||||
Total investment securities | 100 | 541,676 | 24,985 | 566,761 | |||||||||||||||||||
Restricted cash in mutual funds | 284,816 | - | - | 284,816 | |||||||||||||||||||
Total | $ | 549,051 | $ | 541,676 | $ | 24,985 | $ | 1,115,712 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents in mutual funds | $ | 630,227 | $ | - | $ | - | $ | 630,227 | |||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
U.S. government and government sponsored entities | - | 36,442 | - | 36,442 | |||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | - | 140,224 | - | 140,224 | |||||||||||||||||||
Corporate debt | - | 274,272 | 13,417 | 287,689 | |||||||||||||||||||
RMBS | - | 172,135 | 74 | 172,209 | |||||||||||||||||||
CMBS | - | 12,899 | 153 | 13,052 | |||||||||||||||||||
CDO/ABS | - | 3,176 | 13,392 | 16,568 | |||||||||||||||||||
Total | - | 639,148 | 27,036 | 666,184 | |||||||||||||||||||
Other long-term investments (a) | - | - | 1,380 | 1,380 | |||||||||||||||||||
Common stocks (b) | 255 | - | - | 255 | |||||||||||||||||||
Total investment securities | 255 | 639,148 | 28,416 | 667,819 | |||||||||||||||||||
Restricted cash in mutual funds | 93,781 | - | - | 93,781 | |||||||||||||||||||
Other assets - cross currency interest rate derivative | - | 26,699 | - | 26,699 | |||||||||||||||||||
Total | $ | 724,263 | $ | 665,847 | $ | 28,416 | $ | 1,418,526 | |||||||||||||||
(a) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2013 and December 31, 2012 that we account for using the equity method. | |||||||||||||||||||||||
(b) Common stocks excludes stocks not carried at fair value of $0.9 million at September 30, 2013 and $0.7 million at December 31, 2012. | |||||||||||||||||||||||
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2013: | |||||||||||||||||||||||
Net gains (losses) included in: | |||||||||||||||||||||||
Purchases, | |||||||||||||||||||||||
sales, | |||||||||||||||||||||||
Balance at | Other | issues, | Transfers | Transfers | Balance | ||||||||||||||||||
beginning | Other | comprehensive | settlements | into | out of | at end of | |||||||||||||||||
(dollars in thousands) | of period | revenues | income (loss) | (a) | Level 3 | Level 3 | period | ||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 13,114 | $ | (58 | ) | $ | 18 | $ | 2,016 | $ | - | $ | - | $ | 15,090 | ||||||||
RMBS | 218 | - | (133 | ) | - | - | - | 85 | |||||||||||||||
CMBS | 2 | - | - | - | - | - | 2 | ||||||||||||||||
CDO/ABS | 8,463 | 49 | (4 | ) | (75 | ) | - | - | 8,433 | ||||||||||||||
Total | 21,797 | (9 | ) | (119 | ) | 1,941 | - | - | 23,610 | ||||||||||||||
Other long-term investments (b) | 1,478 | - | (103 | ) | - | - | - | 1,375 | |||||||||||||||
Total investment securities | $ | 23,275 | $ | (9 | ) | $ | (222 | ) | $ | 1,941 | $ | - | $ | - | $ | 24,985 | |||||||
(a) The detail of purchases, sales, issues, and settlements for the three months ended September 30, 2013 is presented in the table below. | |||||||||||||||||||||||
(b) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2013 that we account for using the equity method. | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | - | $ | - | $ | - | $ | 2,016 | |||||||||||||
CDO/ABS | - | - | - | (75 | ) | (75 | ) | ||||||||||||||||
Total investment securities | $ | 2,016 | $ | - | $ | - | $ | (75 | ) | $ | 1,941 | ||||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2012: | |||||||||||||||||||||||
Net gains (losses) included in: | |||||||||||||||||||||||
Purchases, | |||||||||||||||||||||||
sales, | |||||||||||||||||||||||
Balance at | Other | issues, | Transfers | Transfers | Balance | ||||||||||||||||||
beginning | Other | comprehensive | settlements | into | out of | at end of | |||||||||||||||||
(dollars in thousands) | of period | revenues | income (loss) | (a) | Level 3 | Level 3 | period | ||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | - | $ | (19 | ) | $ | 8 | $ | - | $ | 14,133 | $ | - | $ | 14,122 | ||||||||
RMBS | 2,025 | (207 | ) | (362 | ) | (62 | ) | - | (1,304 | ) | 90 | ||||||||||||
CMBS | 7,864 | (29 | ) | 59 | (456 | ) | - | (7,159 | ) | 279 | |||||||||||||
CDO/ABS | 9,696 | 100 | 379 | (263 | ) | 5,169 | (909 | ) | 14,172 | ||||||||||||||
Total | 19,585 | (155 | ) | 84 | (781 | ) | 19,302 | (9,372 | ) | 28,663 | |||||||||||||
Other long-term investments (b) | 2,707 | - | (196 | ) | - | - | - | 2,511 | |||||||||||||||
Total investment securities | $ | 22,292 | $ | (155 | ) | $ | (112 | ) | $ | (781 | ) | $ | 19,302 | $ | (9,372 | ) | $ | 31,174 | |||||
(a) “Purchases, sales, issues, and settlements” column only consist of settlements. There were no purchases, sales, or issues of investment securities for the three months ended September 30, 2012. | |||||||||||||||||||||||
(b) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2012 that we account for using the equity method. | |||||||||||||||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013: | |||||||||||||||||||||||
Net gains (losses) included in: | |||||||||||||||||||||||
Purchases, | |||||||||||||||||||||||
sales, | |||||||||||||||||||||||
Balance at | Other | issues, | Transfers | Transfers | Balance | ||||||||||||||||||
beginning | Other | comprehensive | settlements | into | out of | at end of | |||||||||||||||||
(dollars in thousands) | of period | revenues | income (loss) | (a) | Level 3 | Level 3 | period | ||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 13,417 | $ | (167 | ) | $ | 305 | $ | 1,535 | $ | - | $ | - | $ | 15,090 | ||||||||
RMBS | 74 | (35 | ) | 46 | - | - | - | 85 | |||||||||||||||
CMBS | 153 | (8 | ) | 6 | (149 | ) | - | - | 2 | ||||||||||||||
CDO/ABS | 13,392 | 671 | (535 | ) | (5,095 | ) | - | - | 8,433 | ||||||||||||||
Total | 27,036 | 461 | (178 | ) | (3,709 | ) | - | - | 23,610 | ||||||||||||||
Other long-term investments (b) | 1,380 | 2 | 4 | (11 | ) | - | - | 1,375 | |||||||||||||||
Total investment securities | $ | 28,416 | $ | 463 | $ | (174 | ) | $ | (3,720 | ) | $ | - | $ | - | $ | 24,985 | |||||||
(a) The detail of purchases, sales, issues, and settlements for the nine months ended September 30, 2013 is presented in the table below. | |||||||||||||||||||||||
(b) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2013 that we account for using the equity method. | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | - | $ | - | $ | (481 | ) | $ | 1,535 | ||||||||||||
CMBS | - | - | - | (149 | ) | (149 | ) | ||||||||||||||||
CDO/ABS | - | - | - | (5,095 | ) | (5,095 | ) | ||||||||||||||||
Total | 2,016 | - | - | (5,725 | ) | (3,709 | ) | ||||||||||||||||
Other long-term investments | - | - | - | (11 | ) | (11 | ) | ||||||||||||||||
Total investment securities | $ | 2,016 | $ | - | $ | - | $ | (5,736 | ) | $ | (3,720 | ) | |||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2012: | |||||||||||||||||||||||
Net gains (losses) included in: | |||||||||||||||||||||||
Purchases, | |||||||||||||||||||||||
sales, | |||||||||||||||||||||||
Balance at | Other | issues, | Transfers | Transfers | Balance | ||||||||||||||||||
beginning | Other | comprehensive | settlements | into | out of | at end of | |||||||||||||||||
(dollars in thousands) | of period | revenues | income (loss) | (a) | Level 3 | Level 3 | period | ||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||
Corporate debt | $ | 2,800 | $ | (16 | ) | $ | 192 | $ | (2,987 | ) | $ | 14,133 | $ | - | $ | 14,122 | |||||||
RMBS | 1,914 | (171 | ) | (170 | ) | (179 | ) | - | (1,304 | ) | 90 | ||||||||||||
CMBS | 7,944 | (40 | ) | 342 | (808 | ) | - | (7,159 | ) | 279 | |||||||||||||
CDO/ABS | 8,916 | 232 | 1,236 | (472 | ) | 5,169 | (909 | ) | 14,172 | ||||||||||||||
Total | 21,574 | 5 | 1,600 | (4,446 | ) | 19,302 | (9,372 | ) | 28,663 | ||||||||||||||
Other long-term investments (b) | 4,127 | - | (680 | ) | (936 | ) | - | - | 2,511 | ||||||||||||||
Common stocks | 3 | (5 | ) | 2 | - | - | - | - | |||||||||||||||
Total investment securities | $ | 25,704 | $ | - | $ | 922 | $ | (5,382 | ) | $ | 19,302 | $ | (9,372 | ) | $ | 31,174 | |||||||
(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, 2012. | |||||||||||||||||||||||
(b) Other long-term investments excludes our interest in a limited partnership of $0.6 million at September 30, 2012 that we account for using the equity method. | |||||||||||||||||||||||
Quantitative information about Level 3 inputs for assets measured on a recurring basis | ' | ||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
Corporate debt | Discounted cash flows | Yield | 2.61% - 7.61% | 2.74% - 7.35% | |||||||||||||||||||
-4.41% | -4.45% | ||||||||||||||||||||||
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* | N/A* | |||||||||||||||||||
* Not applicable. | |||||||||||||||||||||||
Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded | ' | ||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Real estate owned | $ | - | $ | - | $ | 69,497 | $ | 69,497 | |||||||||||||||
Commercial mortgage loans | - | - | 11,735 | 11,735 | |||||||||||||||||||
Total | $ | - | $ | - | $ | 81,232 | $ | 81,232 | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Real estate owned | $ | - | $ | - | $ | 98,379 | $ | 98,379 | |||||||||||||||
Commercial mortgage loans | - | - | 19,037 | 19,037 | |||||||||||||||||||
Total | $ | - | $ | - | $ | 117,416 | $ | 117,416 | |||||||||||||||
Schedule of net impairment charges recorded on assets measured at fair value on a non-recurring basis | ' | ||||||||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Real estate owned | $ | 5,668 | $ | 7,686 | $ | 19,270 | $ | 27,546 | |||||||||||||||
Commercial mortgage loans | (61 | ) | 1,626 | (1,774 | ) | 3,093 | |||||||||||||||||
Finance receivables held for sale | - | - | - | 1,371 | |||||||||||||||||||
Other intangible assets | - | 4,555 | - | 4,555 | |||||||||||||||||||
Total | $ | 5,607 | $ | 13,867 | $ | 17,496 | $ | 36,565 | |||||||||||||||
Quantitative information about Level 3 inputs for assets measured on a nonrecurring basis | ' | ||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
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* | |||||||||||||||||||
Finance receivables held for sale | Market approach | Negotiated prices with prospective purchasers | N/A* | N/A* | |||||||||||||||||||
Other intangible assets | Discounted cash flows | N/A* | N/A* | N/A* | |||||||||||||||||||
* Not applicable. |
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Details) | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 12, 2013 |
FCFI Acquisition LLC | American International Group, Inc. (AIG) | SHI | |
Initial Stockholder | |||
Subsequent event | |||
Basis of presentation | ' | ' | ' |
Ownership of affiliated entity (as a percent) | 80.00% | 20.00% | ' |
Ownership interest (as a percent) | ' | ' | 75.00% |
Business_and_Summary_of_Signif3
Business and Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Corrections to prior period reported amounts | ' | ' | ' | ' | ' |
Increase in provision for income taxes | ($55,669,000) | ($27,146,000) | ($42,001,000) | ($74,490,000) | ' |
Amount of allowance for finance receivable losses associated with securitizations | 87,800,000 | ' | 87,800,000 | ' | 14,700,000 |
Net finance receivables, less allowance for finance receivable losses | 10,969,326,000 | ' | 10,969,326,000 | ' | 11,516,591,000 |
Provision for finance receivable losses | 97,414,000 | 90,836,000 | 262,142,000 | 227,430,000 | ' |
Out-of-period adjustment, revision of the provision for finance receivable losses, one | ' | ' | ' | ' | ' |
Corrections to prior period reported amounts | ' | ' | ' | ' | ' |
Provision for finance receivable losses | ' | ' | 2,700,000 | ' | ' |
Out-of-period adjustment, revision of the provision for finance receivable losses, two | ' | ' | ' | ' | ' |
Corrections to prior period reported amounts | ' | ' | ' | ' | ' |
Provision for finance receivable losses | -3,800,000 | ' | 0 | ' | ' |
Out of period adjustment | Revision of provision or benefit from income taxes | ' | ' | ' | ' | ' |
Corrections to prior period reported amounts | ' | ' | ' | ' | ' |
Increase in provision for income taxes | ' | ' | 1,200,000 | ' | ' |
Out of period adjustment | Revision of allowance for finance receivable losses | ' | ' | ' | ' | ' |
Corrections to prior period reported amounts | ' | ' | ' | ' | ' |
Amount of allowance for finance receivable losses associated with securitizations | ' | ' | ' | ' | 4,700,000 |
Out of period adjustment | Revision of net fair value of finance receivables | ' | ' | ' | ' | ' |
Corrections to prior period reported amounts | ' | ' | ' | ' | ' |
Net finance receivables, less allowance for finance receivable losses | ' | ' | ' | ' | 177,000,000 |
Out of period adjustment | Revision of fair value of financial instruments | ' | ' | ' | ' | ' |
Corrections to prior period reported amounts | ' | ' | ' | ' | ' |
Understated amount of cash and cash equivalents in mutual funds | ' | ' | ' | ' | $565,300,000 |
Business_and_Summary_of_Signif4
Business and Summary of Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CHANGES IN ACCOUNTING POLICIES | ' | ' | ' | ' | ' |
Charge-offs | $67,292 | ' | $62,278 | $233,560 | $205,505 |
Personal loans | ' | ' | ' | ' | ' |
CHANGES IN ACCOUNTING POLICIES | ' | ' | ' | ' | ' |
Charge-offs | 32,527 | 13,300 | 26,797 | 106,161 | 82,035 |
Change in charge-off policy | Adjustment | Personal loans | ' | ' | ' | ' | ' |
CHANGES IN ACCOUNTING POLICIES | ' | ' | ' | ' | ' |
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | ' | '180 days | ' | ' | ' |
Charge-offs | ' | $13,300 | ' | ' | ' |
Finance_Receivables_Details
Finance Receivables (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Finance Receivables | ' | ' |
Gross receivables | $11,654,590,000 | $12,011,250,000 |
Unearned finance charges and points and fees | -530,412,000 | -435,825,000 |
Accrued finance charges | 87,399,000 | 89,751,000 |
Deferred origination costs | 37,234,000 | 31,551,000 |
Net finance receivables | 11,248,811,000 | 11,696,727,000 |
Long-term debt | 11,740,773,000 | 12,454,316,000 |
Finance receivables pledged as collateral for secured term loan | 1,900,000,000 | 5,200,000,000 |
Unused credit lines | 65,201,000 | 164,508,000 |
Consolidated VIEs | ' | ' |
Finance Receivables | ' | ' |
Long-term debt | 5,302,555,000 | 2,978,338,000 |
Personal loans | ' | ' |
Finance Receivables | ' | ' |
Gross receivables | 3,455,630,000 | 2,984,423,000 |
Unearned finance charges and points and fees | -515,471,000 | -402,828,000 |
Accrued finance charges | 42,704,000 | 36,937,000 |
Deferred origination costs | 36,943,000 | 31,200,000 |
Net finance receivables | 3,019,806,000 | 2,649,732,000 |
Personal loans | Consolidated VIEs | ' | ' |
Finance Receivables | ' | ' |
Net finance receivables | 1,700,000,000 | ' |
Real Estate Loans | ' | ' |
Finance Receivables | ' | ' |
Gross receivables | 8,069,358,000 | 8,793,531,000 |
Unearned finance charges and points and fees | -2,137,000 | -5,910,000 |
Accrued finance charges | 43,605,000 | 50,666,000 |
Deferred origination costs | 291,000 | 351,000 |
Net finance receivables | 8,111,117,000 | 8,838,638,000 |
Unused credit lines | 65,201,000 | 86,437,000 |
Real Estate Loans | Consolidated VIEs | ' | ' |
Finance Receivables | ' | ' |
Net finance receivables | 5,300,000,000 | 4,000,000,000 |
Retail Sales Finance | ' | ' |
Finance Receivables | ' | ' |
Gross receivables | 129,602,000 | 233,296,000 |
Unearned finance charges and points and fees | -12,804,000 | -27,087,000 |
Accrued finance charges | 1,090,000 | 2,148,000 |
Net finance receivables | 117,888,000 | 208,357,000 |
Unused credit lines | ' | $78,071,000 |
Maximum | Personal loans | ' | ' |
Finance Receivables | ' | ' |
Original term | '4 years | ' |
Maximum | Real Estate Loans | ' | ' |
Finance Receivables | ' | ' |
Original term | '360 months | ' |
Maximum | Retail Sales Finance | ' | ' |
Finance Receivables | ' | ' |
Original term | '60 months | ' |
Finance_Receivables_Details_2
Finance Receivables (Details 2) (Revolving Retail, USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Revolving Retail | ' | ' |
CREDIT QUALITY INDICATORS | ' | ' |
Accrual of finance charges, past due period | '180 days | ' |
Finance receivables more than 90 days past due | $0.50 | $1 |
Finance_Receivables_Details_3
Finance Receivables (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Net finance receivables: | ' | ' |
60-89 days past due | $121,681 | $123,262 |
90-119 days past due | 83,524 | 92,666 |
120-149 days past due | 74,866 | 73,206 |
150-179 days past due | 51,334 | 55,682 |
180 days or more past due | 353,106 | 394,665 |
Total delinquent finance receivables | 684,511 | 739,481 |
Current | 10,329,201 | 10,715,765 |
30-59 days past due | 235,099 | 241,481 |
Net finance receivables | 11,248,811 | 11,696,727 |
Personal loans | ' | ' |
Net finance receivables: | ' | ' |
60-89 days past due | 26,048 | 21,683 |
90-119 days past due | 19,375 | 17,538 |
120-149 days past due | 15,270 | 14,050 |
150-179 days past due | 12,261 | 9,613 |
180 days or more past due | 919 | 12,107 |
Total delinquent finance receivables | 73,873 | 74,991 |
Current | 2,897,643 | 2,534,960 |
30-59 days past due | 48,290 | 39,781 |
Net finance receivables | 3,019,806 | 2,649,732 |
Real Estate Loans | ' | ' |
Net finance receivables: | ' | ' |
60-89 days past due | 93,928 | 99,472 |
90-119 days past due | 63,055 | 73,712 |
120-149 days past due | 58,785 | 57,985 |
150-179 days past due | 38,424 | 45,326 |
180 days or more past due | 352,057 | 382,227 |
Total delinquent finance receivables | 606,249 | 658,722 |
Current | 7,321,444 | 7,983,413 |
30-59 days past due | 183,424 | 196,503 |
Net finance receivables | 8,111,117 | 8,838,638 |
Retail Sales Finance | ' | ' |
Net finance receivables: | ' | ' |
60-89 days past due | 1,705 | 2,107 |
90-119 days past due | 1,094 | 1,416 |
120-149 days past due | 811 | 1,171 |
150-179 days past due | 649 | 743 |
180 days or more past due | 130 | 331 |
Total delinquent finance receivables | 4,389 | 5,768 |
Current | 110,114 | 197,392 |
30-59 days past due | 3,385 | 5,197 |
Net finance receivables | $117,888 | $208,357 |
Finance_Receivables_Details_4
Finance Receivables (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | $11,248,811 | $11,696,727 |
Personal loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 3,019,806 | 2,649,732 |
Real Estate Loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 8,111,117 | 8,838,638 |
Retail Sales Finance | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 117,888 | 208,357 |
Performing | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 10,685,981 | 11,080,508 |
Performing | Personal loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 2,971,981 | 2,596,424 |
Performing | Real Estate Loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 7,598,796 | 8,279,388 |
Performing | Retail Sales Finance | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 115,204 | 204,696 |
Nonperforming | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 562,830 | 616,219 |
Nonperforming | Personal loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 47,825 | 53,308 |
Nonperforming | Real Estate Loans | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | 512,321 | 559,250 |
Nonperforming | Retail Sales Finance | ' | ' |
Performing and nonperforming net finance receivables by type | ' | ' |
Net finance receivables | $2,684 | $3,661 |
Finance_Receivables_Details_5
Finance Receivables (Details 5) (USD $) | 34 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES | ' | ' |
Additions | $0 | ' |
Carrying amount, net of allowance | 1,282,683 | 1,373,792 |
Outstanding balance | 1,825,077 | 1,957,260 |
Allowance for purchased credit impaired finance receivable losses | $46,003 | $16,973 |
Finance_Receivables_Details_6
Finance Receivables (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in accretable yield for purchased credit impaired finance receivables | ' | ' | ' | ' |
Balance at beginning of period | $844,018 | $389,461 | $624,879 | $463,960 |
Accretion | -32,041 | -34,768 | -97,036 | -96,697 |
Reclassifications from nonaccretable difference | 2,740 | 313,864 | 303,328 | 313,864 |
Disposals of finance receivables | -8,337 | -6,973 | -24,791 | -19,543 |
Balance at end of period | $806,380 | $661,584 | $806,380 | $661,584 |
Finance_Receivables_Details_7
Finance Receivables (Details 7) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
TDR FINANCE RECEIVABLES | ' | ' |
TDR net finance receivables | $1,264,971 | $806,420 |
Amount of commitments to lend additional funds on TDR finance receivables | 0 | ' |
Real Estate Loans | ' | ' |
TDR FINANCE RECEIVABLES | ' | ' |
TDR gross finance receivables | 1,260,429 | 802,495 |
TDR net finance receivables | 1,264,971 | 806,420 |
Allowance for TDR finance receivable losses | $161,464 | $92,723 |
Finance_Receivables_Details_8
Finance Receivables (Details 8) (Real Estate Loans, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
item | item | item | item | |
Real Estate Loans | ' | ' | ' | ' |
TDR average net receivables and finance charges recognized on TDR finance receivables | ' | ' | ' | ' |
TDR average net receivables | $1,224,413 | $590,024 | $1,072,115 | $451,248 |
TDR finance charges recognized | 17,109 | 8,572 | 45,791 | 18,470 |
New volume of the TDR finance receivables | ' | ' | ' | ' |
Number of TDR accounts | 1,618 | 1,634 | 5,919 | 3,610 |
Pre-modification TDR net finance receivables | 131,969 | 154,492 | 467,362 | 367,858 |
Post-modification TDR net finance receivables | 139,830 | 152,073 | 488,577 | 370,031 |
Number of TDR accounts, with subsequent default | 377 | 126 | 796 | 408 |
TDR net finance receivables, with subsequent default | $26,030 | $12,416 | $59,719 | $47,418 |
Allowance_for_Finance_Receivab2
Allowance for Finance Receivable Losses (Details) (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 | 3 Months Ended | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Adjustment | Personal loans | Personal loans | Personal loans | Personal loans | Personal loans | Personal 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 | Real Estate Loans | Retail Sales Finance | Retail Sales Finance | Retail Sales Finance | Retail Sales Finance | ||||||
Revision of allowance for finance receivable losses | 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 | |||||||||||||||||||
Adjustment | ||||||||||||||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $245,610,000 | $91,673,000 | $180,136,000 | $72,000,000 | ' | ' | $60,250,000 | $66,580,000 | $41,431,000 | $66,580,000 | $39,522,000 | ' | $184,440,000 | $49,051,000 | $111,296,000 | $31,471,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $920,000 | $1,191,000 | $2,260,000 | $1,007,000 |
Provision for finance receivable losses | 97,414,000 | 90,836,000 | 262,142,000 | 227,430,000 | ' | ' | 39,685,000 | ' | 29,010,000 | 64,282,000 | 69,731,000 | ' | 55,886,000 | 59,308,000 | 202,094,000 | 148,509,000 | 17,808,000 | 19,501,000 | 62,968,000 | 69,924,000 | 21,210,000 | 18,015,000 | 60,511,000 | 37,365,000 | 16,868,000 | 21,792,000 | 78,615,000 | 41,220,000 | 1,843,000 | 2,518,000 | -4,234,000 | 9,190,000 |
Charge-offs | -67,292,000 | -62,278,000 | -233,560,000 | -205,505,000 | ' | ' | -32,527,000 | -13,300,000 | -26,797,000 | -106,161,000 | -82,035,000 | -13,300,000 | -32,733,000 | -31,432,000 | -120,061,000 | -107,496,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,032,000 | -4,049,000 | -7,338,000 | -15,974,000 |
Recoveries | 3,753,000 | 12,837,000 | 70,767,000 | 40,444,000 | ' | ' | 2,135,000 | ' | 7,865,000 | 44,842,000 | 25,398,000 | ' | 1,324,000 | 2,545,000 | 15,588,000 | 6,988,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 294,000 | 2,427,000 | 10,337,000 | 8,058,000 |
Transfers to finance receivables held for sale | ' | ' | ' | -1,301,000 | ' | ' | ' | ' | ' | ' | -1,107,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -194,000 |
Balance at end of period | 279,485,000 | 133,068,000 | 279,485,000 | 133,068,000 | ' | ' | 69,543,000 | ' | 51,509,000 | 69,543,000 | 51,509,000 | ' | 208,917,000 | 79,472,000 | 208,917,000 | 79,472,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,025,000 | 2,087,000 | 1,025,000 | 2,087,000 |
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of original loan amount to be received before charge-off (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recoveries resulting from sale of previously charged-off finance receivables | ' | ' | 41,200,000 | ' | ' | ' | ' | ' | ' | 25,400,000 | ' | ' | ' | ' | 9,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,900,000 | ' |
Transfers to finance receivables held for sale which have a specific allowance | ' | ' | 77,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of allowance for finance receivable losses associated with securitizations | 87,800,000 | ' | 87,800,000 | ' | 14,700,000 | 4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value charged-off for purchased credit impaired loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased credit impaired finance receivables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,873,000 | $9,362,000 | $31,501,000 | $28,712,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance_for_Finance_Receivab3
Allowance for Finance Receivable Losses (Details 2) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | $72,018 | ' | $70,440 | ' | ' | ' |
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 46,003 | ' | 16,973 | ' | ' | ' |
Individually evaluated for impairment (TDR finance receivables) | 161,464 | ' | 92,723 | ' | ' | ' |
Total | 279,485 | 245,610 | 180,136 | 133,068 | 91,673 | 72,000 |
Finance receivables: | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 8,655,154 | ' | 9,499,542 | ' | ' | ' |
Purchased credit impaired finance receivables | 1,328,686 | ' | 1,390,765 | ' | ' | ' |
TDR finance receivables | 1,264,971 | ' | 806,420 | ' | ' | ' |
Net finance receivables | 11,248,811 | ' | 11,696,727 | ' | ' | ' |
Personal loans | ' | ' | ' | ' | ' | ' |
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 69,543 | ' | 66,580 | ' | ' | ' |
Total | 69,543 | ' | 66,580 | ' | ' | ' |
Finance receivables: | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 3,019,806 | ' | 2,649,732 | ' | ' | ' |
Net finance receivables | 3,019,806 | ' | 2,649,732 | ' | ' | ' |
Real Estate Loans | ' | ' | ' | ' | ' | ' |
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 1,450 | ' | 1,600 | ' | ' | ' |
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 46,003 | ' | 16,973 | ' | ' | ' |
Individually evaluated for impairment (TDR finance receivables) | 161,464 | ' | 92,723 | ' | ' | ' |
Total | 208,917 | ' | 111,296 | ' | ' | ' |
Finance receivables: | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 5,517,460 | ' | 6,641,453 | ' | ' | ' |
Purchased credit impaired finance receivables | 1,328,686 | ' | 1,390,765 | ' | ' | ' |
TDR finance receivables | 1,264,971 | ' | 806,420 | ' | ' | ' |
Net finance receivables | 8,111,117 | ' | 8,838,638 | ' | ' | ' |
Retail Sales Finance | ' | ' | ' | ' | ' | ' |
Allowance for finance receivable losses for finance receivables: | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 1,025 | ' | 2,260 | ' | ' | ' |
Total | 1,025 | ' | 2,260 | ' | ' | ' |
Finance receivables: | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 117,888 | ' | 208,357 | ' | ' | ' |
Net finance receivables | $117,888 | ' | $208,357 | ' | ' | ' |
Finance_Receivables_Held_for_S2
Finance Receivables Held for Sale (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
item | item | item | item | ||
Finance Receivables Held for Sale | ' | ' | ' | ' | ' |
Finance receivables transferred from held for investment to held for sale | ' | $103,100,000 | $77,800,000 | ' | ' |
Net gains (loss) recorded in other revenues - other for marking loans to lower of cost or fair value prior to transfer of finance receivables from held for investment to held for sale | ' | 6,500,000 | ' | ' | 4,500,000 |
Carrying Amount of finance receivable held-for-sale originated as held-for-investment that were sold | ' | 123,000,000 | ' | ' | 171,000,000 |
Number of loans reaching defined delinquency limits repurchased under loan sale agreement | 2 | 5 | ' | 19 | 6 |
Amount of loans reaching defined delinquency limits repurchased under loan sale agreement | 300,000 | 1,000,000 | ' | 2,800,000 | 1,100,000 |
Number of material unresolved recourse requests | ' | ' | ' | 0 | ' |
Activity in reserve for sales recourse obligations | ' | ' | ' | ' | ' |
Balance at beginning of period | 4,766,000 | 1,765,000 | 1,648,000 | 4,863,000 | 1,648,000 |
Provision for recourse obligations | ' | ' | ' | 322,000 | 117,000 |
Recourse losses | -42,000 | -25,000 | ' | -461,000 | -25,000 |
Balance at end of period | $4,724,000 | $1,740,000 | ' | $4,724,000 | $1,740,000 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | $553,984,000 | $641,994,000 | ' |
Unrealized Gains | 17,993,000 | 28,342,000 | ' |
Unrealized Losses | -4,366,000 | -1,797,000 | ' |
Fair Value | 567,611,000 | 668,539,000 | ' |
Interest in a limited partnership | 600,000 | 600,000 | 600,000 |
Investment 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 investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | 551,625,000 | 639,616,000 | ' |
Unrealized Gains | 17,947,000 | 28,312,000 | ' |
Unrealized Losses | -4,286,000 | -1,744,000 | ' |
Fair Value | 565,286,000 | 666,184,000 | ' |
U.S. government and government sponsored entities | ' | ' | ' |
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | 73,925,000 | 33,955,000 | ' |
Unrealized Gains | 1,027,000 | 2,487,000 | ' |
Unrealized Losses | -169,000 | ' | ' |
Fair Value | 74,783,000 | 36,442,000 | ' |
Obligations of states, municipalities, and political subdivisions | ' | ' | ' |
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | 92,920,000 | 135,476,000 | ' |
Unrealized Gains | 2,215,000 | 4,997,000 | ' |
Unrealized Losses | -161,000 | -249,000 | ' |
Fair Value | 94,974,000 | 140,224,000 | ' |
Corporate debt | ' | ' | ' |
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | 218,569,000 | 278,555,000 | ' |
Unrealized Gains | 6,342,000 | 10,514,000 | ' |
Unrealized Losses | -2,271,000 | -1,380,000 | ' |
Fair Value | 222,640,000 | 287,689,000 | ' |
RMBS | ' | ' | ' |
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | 134,112,000 | 164,308,000 | ' |
Unrealized Gains | 6,481,000 | 7,948,000 | ' |
Unrealized Losses | -1,457,000 | -47,000 | ' |
Fair Value | 139,136,000 | 172,209,000 | ' |
CMBS | ' | ' | ' |
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | 19,215,000 | 11,964,000 | ' |
Unrealized Gains | 1,205,000 | 1,152,000 | ' |
Unrealized Losses | -206,000 | -64,000 | ' |
Fair Value | 20,214,000 | 13,052,000 | ' |
CDO/ABS | ' | ' | ' |
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | 12,884,000 | 15,358,000 | ' |
Unrealized Gains | 677,000 | 1,214,000 | ' |
Unrealized Losses | -22,000 | -4,000 | ' |
Fair Value | 13,539,000 | 16,568,000 | ' |
Other long-term investments | ' | ' | ' |
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | 1,395,000 | 1,404,000 | ' |
Unrealized Gains | 46,000 | ' | ' |
Unrealized Losses | -66,000 | -24,000 | ' |
Fair Value | 1,375,000 | 1,380,000 | ' |
Common stocks | ' | ' | ' |
Cost/amortized cost, unrealized gains and losses, and fair value of investment securities by type, which are classified as available-for-sale | ' | ' | ' |
Cost/Amortized Cost | 964,000 | 974,000 | ' |
Unrealized Gains | ' | 30,000 | ' |
Unrealized Losses | -14,000 | -29,000 | ' |
Fair Value | $950,000 | $975,000 | ' |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | $116,162 | ' | $56,025 |
12 Months or Longer | ' | 8,743 | ' | 64,388 |
Total | ' | 124,905 | ' | 120,413 |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -3,962 | ' | -618 |
12 Months or Longer | ' | -404 | ' | -1,179 |
Total | ' | -4,366 | ' | -1,797 |
Other-than-temporary impairment credit loss | ' | ' | ' | ' |
Net impairment losses recognized in net income (loss) | 254 | 26 | 906 | ' |
Bonds: | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | 115,927 | ' | 55,847 |
12 Months or Longer | ' | 8,743 | ' | 64,295 |
Total | ' | 124,670 | ' | 120,142 |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -3,882 | ' | -595 |
12 Months or Longer | ' | -404 | ' | -1,149 |
Total | ' | -4,286 | ' | -1,744 |
U.S. government and government sponsored entities | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | 19,968 | ' | ' |
Total | ' | 19,968 | ' | ' |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -169 | ' | ' |
Total | ' | -169 | ' | ' |
Obligations of states, municipalities, and political subdivisions | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | 2,603 | ' | 1,569 |
12 Months or Longer | ' | ' | ' | 9,646 |
Total | ' | 2,603 | ' | 11,215 |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -161 | ' | -4 |
12 Months or Longer | ' | ' | ' | -245 |
Total | ' | -161 | ' | -249 |
Corporate debt | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | 42,919 | ' | 23,673 |
12 Months or Longer | ' | 8,712 | ' | 49,690 |
Total | ' | 51,631 | ' | 73,363 |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -1,867 | ' | -510 |
12 Months or Longer | ' | -404 | ' | -870 |
Total | ' | -2,271 | ' | -1,380 |
RMBS | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | 39,911 | ' | 29,101 |
12 Months or Longer | ' | 31 | ' | 46 |
Total | ' | 39,942 | ' | 29,147 |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -1,457 | ' | -46 |
12 Months or Longer | ' | ' | ' | -1 |
Total | ' | -1,457 | ' | -47 |
Other-than-temporary impairment credit loss | ' | ' | ' | ' |
Net impairment losses recognized in net income (loss) | ' | 26 | ' | ' |
CMBS | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | 7,810 | ' | 712 |
12 Months or Longer | ' | ' | ' | 4,913 |
Total | ' | 7,810 | ' | 5,625 |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -206 | ' | -31 |
12 Months or Longer | ' | ' | ' | -33 |
Total | ' | -206 | ' | -64 |
CDO/ABS | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | 2,716 | ' | 792 |
Total | ' | 2,716 | ' | 792 |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -22 | ' | -4 |
Total | ' | -22 | ' | -4 |
Other long-term investments | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | 135 | ' | 178 |
12 Months or Longer | ' | ' | ' | 8 |
Total | ' | 135 | ' | 186 |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -66 | ' | -23 |
12 Months or Longer | ' | ' | ' | -1 |
Total | ' | -66 | ' | -24 |
Common stocks | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' |
Less Than 12 Months | ' | 100 | ' | ' |
12 Months or Longer | ' | ' | ' | 85 |
Total | ' | 100 | ' | 85 |
Unrealized Losses | ' | ' | ' | ' |
Less Than 12 Months | ' | -14 | ' | ' |
12 Months or Longer | ' | ' | ' | -29 |
Total | ' | ($14) | ' | ($29) |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Components of the other-than-temporary impairment charges on investment securities | ' | ' | ' | ' |
Total other-than-temporary impairment losses | ' | ($254) | ($26) | ($906) |
Portion of loss recognized in accumulated other comprehensive loss | ' | ' | 0 | ' |
Net impairment losses recognized in net loss | ' | -254 | -26 | -906 |
Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired investment securities | ' | ' | ' | ' |
Balance at beginning of period | 1,523 | 4,377 | 1,650 | 3,725 |
Impairment previously recognized | ' | 254 | 26 | 906 |
Realized due to dispositions with no prior intention to sell | ' | -2,962 | -153 | -2,962 |
Balance at end of period | 1,523 | 1,669 | 1,523 | 1,669 |
Investment securities sold or redeemed | ' | ' | ' | ' |
Fair value | 37,160 | 33,880 | 142,693 | 65,401 |
Realized gains | 229 | 564 | 2,452 | 1,054 |
Realized losses | -219 | -910 | -390 | -1,245 |
Net realized gains (losses) | $10 | ($346) | $2,062 | ($191) |
Investment_Securities_Details_2
Investment Securities (Details 4) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Fair Value | ' |
Due in 1 year or less | $15,307 |
Due after 1 year through 5 years | 192,759 |
Due after 5 years through 10 years | 131,286 |
Due after 10 years | 53,045 |
Mortgage-backed, asset-backed, and collateralized securities | 172,889 |
Fair Value | 565,286 |
Amortized Cost | ' |
Due in 1 year or less | 15,240 |
Due after 1 year through 5 years | 187,852 |
Due after 5 years through 10 years | 130,914 |
Due after 10 years | 51,408 |
Mortgage-backed, asset-backed, and collateralized securities | 166,211 |
Total | $551,625 |
Transactions_with_Affiliates_o2
Transactions with Affiliates of Fortress or AIG (Details) (USD $) | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||||
Aug. 05, 2013 | Aug. 31, 2012 | Jul. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 05, 2013 | Aug. 31, 2012 | Dec. 31, 2012 | Jul. 31, 2012 | |
AIGFP | AIGFP | AIGFP | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Bank of America | Nationstar | Nationstar | Nationstar | Nationstar | Nationstar | Affiliates of Fortress | Affiliates of Fortress | Logan Circle Partners, L.P. | Logan Circle Partners, L.P. | Logan Circle Partners, L.P. | Logan Circle Partners, L.P. | Subsidiaries of AIG | Subsidiaries of AIG | SFI | SFI | SFI | SFI | |
Cross currency interest rate derivative | Cross currency interest rate derivative | Cross currency interest rate derivative | Secured term loan | Secured term loan | Secured term loan | item | MorEquity and subsidiaries (the "Owners") | MorEquity and subsidiaries (the "Owners") | MorEquity and subsidiaries (the "Owners") | MorEquity and subsidiaries (the "Owners") | Secured term loan | Secured term loan | Merit | Merit | AIGFP | AIGFP | AIGFP | AIGFP | |||||
item | item | item | |||||||||||||||||||||
Transactions with Affiliates of Fortress or AIG | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of loan | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | $1,300,000,000 | $3,800,000,000 | $750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of lending positions owned or managed in the syndicate of lenders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,500,000 | 85,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiaries of which centralized real estate loans were subserved by affiliate | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subservicing fees | ' | ' | ' | ' | ' | ' | ' | 2,132,000 | 2,380,000 | 6,556,000 | 7,525,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Refinancing concessions | ' | ' | ' | ' | ' | ' | ' | ' | 216,000 | 265,000 | 4,177,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs and fees incurred for the investment management services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 300,000 | 800,000 | 600,000 | ' | ' | ' | ' | ' | ' |
Reserves for reinsurance agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,900,000 | 46,800,000 | ' | ' | ' | ' |
Amount of cash collateral held with related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | 60,000,000 |
Number of positions | 0 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of positions terminated | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in cash collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' |
Loss recorded in other revenues - other on termination | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of terminated instruments | 416,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of cash collateral returned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 05, 2013 | Aug. 31, 2012 | Jul. 31, 2012 | Apr. 02, 2013 | Sep. 30, 2013 | Apr. 02, 2013 | Apr. 02, 2013 | Apr. 02, 2013 | Apr. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 10, 2013 | Jan. 11, 2013 | Dec. 31, 2012 | Jul. 11, 2012 | Jan. 10, 2012 | Jul. 26, 2013 | Jul. 26, 2013 | Aug. 05, 2013 | Aug. 31, 2012 | Dec. 31, 2012 | Jul. 31, 2012 | Feb. 28, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Cross currency interest rate derivative | Cross currency interest rate derivative | Cross currency interest rate derivative | SCH | SCH | SCH | SCH | Newcastle Investment Corp. | BTO Willow Holdings, L.P | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SFI | SGSC | SGSC | SGSC | SGSC | SGSC | SGSC | SGSC | Second Street Funding Corporation | Second Street Funding Corporation | |||
AIGFP | AIGFP | AIGFP | Personal and real estate loans | Minimum | Intercompany demand note | Maximum | AIGFP | AIGFP | AIGFP | AIGFP | SFSSC | SFSSC | SFSSC | SFSSC | SFSSC | SFSSC | SFMC | SFMC | SFMC | SFMC | SFMC | SFMC | SFMC | ||||||||||||||||||
item | item | item | Personal and real estate loans | Intercompany demand note | Services Agreement | Services Agreement | Services Agreement | License Agreement | License Agreement | Building Lease | Building Lease | ||||||||||||||||||||||||||||||
item | item | ||||||||||||||||||||||||||||||||||||||||
Related party transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note receivable from SFI | $537,989,000 | $537,989,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $538,000,000 | ' | $538,000,000 | ' | ' | ' | $538,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest receivable on note | 87,399,000 | 89,751,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | 1,400,000 | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate for the unpaid principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'prime rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest revenue on note receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | 4,400,000 | 14,400,000 | 13,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables from parent and affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,700,000 | 16,200,000 |
Amount advanced | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of intercompany promissory note (as a percent) | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest (as a percent) | ' | ' | ' | ' | ' | 47.00% | ' | ' | ' | 30.00% | 23.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans | ' | ' | ' | ' | ' | ' | ' | ' | 415,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of finance receivable | ' | ' | ' | ' | ' | ' | ' | 3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance | 11,654,590,000 | 12,011,250,000 | ' | ' | ' | ' | ' | 3,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest revenue on promissory note | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of intercompany demand note (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount that will be received by counterparty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual fee rate on average monthly unreimbursed amount (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional amount paid towards settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | 5,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Resulting amount payable towards settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 5,900,000 | 2,700,000 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital contributions received to satisfy hybrid debt semi-annual interest payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,500,000 | 10,500,000 | ' | 10,500,000 | 10,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of cash collateral posted by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of positions | ' | ' | 0 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of positions terminated | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in cash collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of cash collateral returned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,700,000 | 5,700,000 | 1,900,000 | ' | ' | ' | ' | ' | ' |
Service fee expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,800,000 | 101,700,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of allocated cost of service | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Percentage of actual cost incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Margin on the systems and software (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' |
License fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | 4,600,000 | ' | ' | ' | ' |
Number of buildings leased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' |
Annual rental fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | ' |
Rent charged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $900,000 | $2,800,000 | ' | ' |
Longterm_Debt_Details
Long-term Debt (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 29, 2013 | 30-May-13 | 15-May-13 | Apr. 11, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | USD ($) | Retail Notes | Medium Term Notes | Medium Term Notes | Euro Denominated Notes | Euro Denominated Notes | Secured Term Loan | Secured Term Loan | Secured Term Loan | Secured Term Loan | Secured Term Loan | Secured Term Loan | Secured Term Loan | Securitizations | Junior Subordinated Debt | Senior Notes issued in May 2013 | Senior Notes issued in September 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Bank of America | USD ($) | USD ($) | USD ($) | USD ($) | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||
Principal maturities of long-term debt by type of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual interest rate, minimum (as a percent) | ' | ' | 4.95% | 5.40% | ' | ' | ' | ' | ' | ' | ' | 4.75% | ' | ' | 1.27% | ' | ' | ' |
Interest rates (as a percent) | ' | ' | ' | ' | ' | 4.13% | 4.13% | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' |
Contractual interest rate, maximum (as a percent) | ' | ' | 7.50% | 8.25% | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | ' | 6.00% | ' | ' | ' |
Fourth quarter 2013 | $419,540,000 | ' | $2,903,000 | ' | ' | $416,637,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
First quarter 2014 | 1,115,000 | ' | 1,115,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Second quarter 2014 | 10,892,000 | ' | 10,892,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Third quarter 2014 | 8,569,000 | ' | 8,569,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remainder of 2014 | 335,486,000 | ' | 335,486,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 797,254,000 | ' | 47,254,000 | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 375,000,000 | ' | ' | 375,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 2,966,337,000 | ' | ' | 2,416,337,000 | ' | ' | ' | ' | ' | ' | ' | 550,000,000 | ' | ' | ' | ' | ' | ' |
2018-2067 | 2,350,000,000 | ' | ' | 1,250,000,000 | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | 350,000,000 | ' | ' |
Securitizations | 5,318,068,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,318,068,000 | ' | ' | ' |
Total principal maturities | 12,582,261,000 | ' | 406,219,000 | 4,791,337,000 | ' | 416,637,000 | ' | ' | ' | ' | ' | 1,300,000,000 | ' | ' | 5,318,068,000 | 350,000,000 | ' | ' |
Total carrying amount | 11,740,773,000 | 12,454,316,000 | 382,061,000 | 4,148,608,000 | ' | 432,245,000 | ' | ' | ' | ' | ' | 1,303,739,000 | ' | ' | 5,302,555,000 | 171,565,000 | ' | ' |
Face amount of each issuance of debt | ' | ' | ' | 700,000,000 | 300,000,000 | ' | 323,400,000 | ' | ' | ' | ' | 1,300,000,000 | 3,800,000,000 | 750,000,000 | ' | ' | 300,000,000 | 950,000,000 |
Prepayment of secured term loan | ' | ' | ' | ' | ' | ' | ' | 235,100,000 | 500,000,000 | 500,000,000 | 714,900,000 | 1,250,000,000 | ' | ' | ' | ' | ' | ' |
Amount of the subsidiary's stock that may be used to secure debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $167,900,000 | ' | ' | ' | ' | ' | ' |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Feb. 19, 2013 | Jun. 19, 2013 | Sep. 25, 2013 | Sep. 26, 2013 | Sep. 30, 2013 | Sep. 27, 2013 | Sep. 30, 2013 | Jun. 19, 2013 | Jun. 19, 2013 | Apr. 10, 2013 | Jul. 09, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Asset-backed notes | Mortgage-backed notes | Mortgage-backed notes | Mortgage-backed notes | 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 | |||||||||
2013-B Trust | The 2012-2 Trust | The 2012-3 Trust | The 2013-2 Trust | Asset-backed notes | Asset-backed notes | Asset-backed notes | Asset-backed notes | Asset-backed notes | Asset-backed notes | Asset-backed notes | Asset-backed notes | Asset-backed notes | Mortgage-backed notes | Mortgage-backed notes | Personal loans | Real Estate Loans | Real Estate Loans | ||||||||||||||
2013-A Trust | 2013-B Trust | 2013-BAC Securitization | Midbrook 2013-VFN1 Securitization | Midbrook 2013-VFN1 Securitization | Springleaf 2013-VFN1 Securitization | Springleaf 2013-VFN1 Securitization | Senior note | Subordinate notes | The 2013-1 Trust | The 2013-2 Trust | |||||||||||||||||||||
2013-B Trust | 2013-B Trust | ||||||||||||||||||||||||||||||
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finance receivables | $11,248,811,000 | ' | $11,248,811,000 | ' | ' | $11,696,727,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,696,019,000 | $5,348,642,000 | $3,977,412,000 |
Allowance for finance receivable losses | 279,485,000 | 133,068,000 | 279,485,000 | 133,068,000 | 245,610,000 | 180,136,000 | 91,673,000 | 72,000,000 | ' | ' | ' | ' | 87,784,000 | ' | 87,784,000 | ' | 14,690,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | 346,631,000 | ' | 346,631,000 | ' | ' | 113,703,000 | ' | ' | ' | ' | ' | ' | 332,066,000 | ' | 332,066,000 | ' | 104,853,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 11,740,773,000 | ' | 11,740,773,000 | ' | ' | 12,454,316,000 | ' | ' | ' | ' | ' | ' | 5,302,555,000 | ' | 5,302,555,000 | ' | 2,978,338,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated interest expense | 205,036,000 | 267,085,000 | 646,932,000 | 823,334,000 | ' | ' | ' | ' | ' | ' | ' | ' | 61,600,000 | 32,700,000 | 151,400,000 | 73,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of notes sold under private securitization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 567,900,000 | 256,200,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | 782,500,000 | 599,400,000 | ' | ' | ' |
Maximum amount of notes that may be issued under private securitization transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average yield (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.83% | 4.11% | ' | ' | ' | ' | ' | ' | ' | 2.85% | 2.88% | ' | ' | ' |
Proceeds from notes sold under securitization transactions | ' | ' | ' | ' | ' | ' | ' | ' | 114,000,000 | 20,000,000 | 7,500,000 | 157,500,000 | ' | ' | ' | ' | ' | 567,500,000 | 255,400,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | 782,400,000 | 590,900,000 | ' | ' | ' |
Interest reserve requirement on notes sold under securitization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,600,000 | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes to be retained by the entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,400,000 | ' | ' | ' | ' | ' | ' | 114,000,000 | 29,800,000 | 236,800,000 | 535,100,000 | ' | ' | ' |
Amounts funded at closing of transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Funding period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Extended funding period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' |
Funding period including extended period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Additional debt recorded | ' | ' | ' | ' | ' | ' | ' | ' | 111,600,000 | 20,700,000 | 7,800,000 | 148,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount drawn | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (Cross currency interest rate, USD $) | 0 Months Ended | |||
Aug. 05, 2013 | Jul. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
AIGFP | AIGFP | Non-Designated Hedging Instruments | Non-Designated Hedging Instruments | |
item | item | |||
Fair value of derivative instruments | ' | ' | ' | ' |
Number of derivative instruments | 0 | 2 | ' | ' |
Loss recorded in other revenues - other on termination | $1,900,000 | ' | ' | ' |
Notional Amount | ' | ' | 0 | 416,636,000 |
Derivative Assets | ' | ' | $0 | $26,699,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Reclassification | Reclassification | Reclassification | Reclassification | Gain (loss) for cash flow hedges | Gain (loss) for cash flow hedges | Gain (loss) for cash flow hedges | Cash flow hedges | Cross currency interest rate | Cross currency interest rate | Cross currency interest rate | Cross currency interest rate | Cross currency interest rate | Cross currency interest rate | Cross currency interest rate | Cross currency interest rate | Cross currency interest rate | |||||
Reclassification | Reclassification | Reclassification | Gain (loss) for cash flow hedges | Gain (loss) for cash flow hedges | Gain (loss) for cash flow hedges | Cash flow hedges | Other Revenues - Other | Other Revenues - Other | Interest Expense | Interest Expense | Interest Expense | ||||||||||
Reclassification | Reclassification | Reclassification | Gain (loss) for cash flow hedges | Gain (loss) for cash flow hedges | Gain (loss) for cash flow hedges | Gain (loss) for cash flow hedges | Gain (loss) for cash flow hedges | ||||||||||||||
Reclassification | Reclassification | Reclassification | Reclassification | Reclassification | |||||||||||||||||
Amount of gain (loss) recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
AOCI(L) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($16,987,000) | ' | ' | ' | ' | ' |
From AOCI(L) to Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 293,000 | -12,453,000 | ' | ' | ' |
From AOCI(L) to Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 899,000 | 160,000 | 975,000 |
Net income (loss) | -91,395,000 | -49,973,000 | -73,686,000 | -141,178,000 | 6,000 | 384,000 | 1,427,000 | -8,084,000 | 774,000 | 104,000 | -7,461,000 | ' | 1,192,000 | 160,000 | -11,478,000 | ' | ' | ' | ' | ' | ' |
Recognized in Other Revenues - Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -426,000 | ' | ' | ' | ' | ' |
Deferred net gain on cash flow hedges reclassified from accumulated other comprehensive income to earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (Cross currency interest rate, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cross currency interest rate | ' | ' | ' | ' |
Amounts recognized in other revenues for non-designated hedging instruments | ' | ' | ' | ' |
Total | $986 | ($19,244) | ($3,376) | ($23,825) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative adjustments included in other revenues | ' | ' | ' | ' |
Mark to market gains (losses) | $6,260 | ($6,364) | ($8,244) | ($33,687) |
Net interest income | 1,701 | 4,955 | 9,161 | 14,575 |
Credit valuation adjustment gains (losses) | 11 | 211 | 50 | -3,614 |
Ineffectiveness losses | ' | ' | ' | -426 |
Other | -292 | -1,258 | -292 | -517 |
Total | $7,680 | ($2,456) | $675 | ($23,669) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (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 | ||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Unrealized Gains (Losses) Investment Securities | Unrealized Gains (Losses) Investment Securities | Unrealized Gains (Losses) Investment Securities | Unrealized Gains (Losses) Investment Securities | Unrealized Gains (Losses) Cash Flow Hedges | Unrealized Gains (Losses) Cash Flow Hedges | 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 | Foreign Currency Translation Adjustments | Foreign Currency Translation Adjustments | Foreign Currency Translation Adjustments | Foreign Currency Translation Adjustments | |||||
Changes in accumulated other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $23,420 | ($6,098) | $29,606 | ($25,538) | $9,079 | $12,854 | $17,255 | $5,213 | $1,511 | $104 | $4,318 | ($35,221) | $8,120 | $8,120 | $8,120 | ($21,828) | $6,221 | $1,365 | $4,127 | $152 |
Other comprehensive income before reclassifications | -2,271 | 5,577 | -7,036 | 16,549 | -215 | 2,510 | -7,074 | 9,918 | ' | ' | -11,042 | 13,393 | ' | ' | ' | ' | -2,056 | 3,067 | 38 | 4,280 |
Reclassification adjustments from accumulated other comprehensive income | -6 | -384 | -1,427 | 8,084 | -6 | 390 | -1,323 | 623 | -774 | -104 | 7,461 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at end of period | $21,143 | ($905) | $21,143 | ($905) | $8,858 | $15,754 | $8,858 | $15,754 | $737 | ' | $737 | ($21,828) | $8,120 | $8,120 | $8,120 | ($21,828) | $4,165 | $4,432 | $4,165 | $4,432 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification adjustments from accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Investment revenues, before taxes | $6,756 | $5,747 | $26,291 | $21,378 |
Interest expenses, before taxes | -205,036 | -267,085 | -646,932 | -823,334 |
Other revenues - other, before taxes | 5,514 | 1,853 | 20,874 | -19,204 |
Income tax effect | 55,669 | 27,146 | 42,001 | 74,490 |
Net loss | -91,395 | -49,973 | -73,686 | -141,178 |
Reclassification adjustments | ' | ' | ' | ' |
Reclassification adjustments from accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Net loss | 6 | 384 | 1,427 | -8,084 |
Unrealized gains (losses) on investment securities | Reclassification adjustments | ' | ' | ' | ' |
Reclassification adjustments from accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Investment revenues, before taxes | 10 | -601 | 2,036 | -959 |
Income tax effect | -4 | 211 | -713 | 336 |
Net loss | 6 | -390 | 1,323 | -623 |
Unrealized gains (losses) on cash flow hedges | Reclassification adjustments | ' | ' | ' | ' |
Reclassification adjustments from accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Interest expenses, before taxes | ' | 899 | 160 | 975 |
Other revenues - other, before taxes | ' | 293 | ' | -12,453 |
Income tax effect | ' | -418 | -56 | 4,017 |
Net loss | ' | $774 | $104 | ($7,461) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Out of period adjustment | State | State | United Kingdom operations | United Kingdom operations | |||
Income taxes | ' | ' | ' | ' | ' | ' | ' |
Net deferred tax liabilities | $167.70 | $298.90 | ' | ' | ' | ' | ' |
Valuation allowance | ' | ' | ' | $21.30 | $19.70 | $20.10 | $19.60 |
Effective income tax rate (as a percent) | 36.30% | ' | 1.00% | ' | ' | ' | ' |
Percentage increase in effective tax rate for benefit for state income taxes, net of provision from federal income taxes | 2.20% | ' | ' | ' | ' | ' | ' |
Percentage increase in effective tax rate for benefit of tax exempt income | 1.20% | ' | ' | ' | ' | ' | ' |
Restructuring_Details
Restructuring (Details) (USD $) | 6 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2012 | Sep. 30, 2012 |
item | ||
Restructuring | ' | ' |
Number of states where entity does not have a significant presence | 14 | ' |
Number of states where certain branch operations consolidated | 26 | ' |
Number of branch offices for which closure is planned | 231 | ' |
Restructuring expenses - pretax | ' | $23,503 |
Headquarters in Evansville, Indiana | ' | ' |
Restructuring | ' | ' |
Reduction in number of employees | 820 | ' |
Consumer | ' | ' |
Restructuring | ' | ' |
Restructuring expenses - pretax | ' | 15,634 |
Insurance | ' | ' |
Restructuring | ' | ' |
Restructuring expenses - pretax | ' | 229 |
Real Estate | ' | ' |
Restructuring | ' | ' |
Restructuring expenses - pretax | ' | 818 |
Other | ' | ' |
Restructuring | ' | ' |
Restructuring expenses - pretax | ' | $6,822 |
Restructuring_Details_2
Restructuring (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in restructuring liability | ' | ' | ' | ' |
Balance at beginning of period | $113 | $4,174 | $421 | ' |
Amounts charged to expense | ' | ' | ' | 23,503 |
Amounts paid | -44 | -2,604 | -352 | -16,887 |
Non-cash expenses | ' | ' | ' | -5,046 |
Balance at end of period | 69 | 1,570 | 69 | 1,570 |
Severance Expenses | ' | ' | ' | ' |
Changes in restructuring liability | ' | ' | ' | ' |
Balance at beginning of period | ' | 2,168 | 56 | ' |
Amounts charged to expense | ' | ' | ' | 11,600 |
Amounts paid | ' | -1,583 | -56 | -11,015 |
Balance at end of period | ' | 585 | ' | 585 |
Contract Termination Expenses | ' | ' | ' | ' |
Changes in restructuring liability | ' | ' | ' | ' |
Balance at beginning of period | 113 | 1,609 | 365 | ' |
Amounts charged to expense | ' | ' | ' | 5,840 |
Amounts paid | -44 | -885 | -296 | -5,116 |
Balance at end of period | 69 | 724 | 69 | 724 |
Asset Writedowns | ' | ' | ' | ' |
Changes in restructuring liability | ' | ' | ' | ' |
Amounts charged to expense | ' | ' | ' | 5,246 |
Non-cash expenses | ' | ' | ' | -5,246 |
Other Exit Expenses | ' | ' | ' | ' |
Changes in restructuring liability | ' | ' | ' | ' |
Balance at beginning of period | ' | 397 | ' | ' |
Amounts charged to expense | ' | ' | ' | 817 |
Amounts paid | ' | -136 | ' | -756 |
Non-cash expenses | ' | ' | ' | 200 |
Balance at end of period | ' | $261 | ' | $261 |
Contingencies_Details
Contingencies (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Contingencies | ' | ' |
Estimated PPI claims reserve | $46.90 | $62.70 |
Risks_and_Uncertainties_Relate1
Risks and Uncertainties Related to Liquidity and Capital Resources (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Risks and Uncertainties Disclosures | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $1,048,751,000 | $1,520,016,000 | $1,048,751,000 | $1,520,016,000 | $1,357,212,000 | $477,469,000 |
Net loss | -91,395,000 | -49,973,000 | -73,686,000 | -141,178,000 | ' | ' |
Cash flows from operating and investing activities | ' | ' | 540,800,000 | ' | ' | ' |
Remaining principal and interest payments for 2013 | 560,000,000 | ' | 560,000,000 | ' | ' | ' |
Debt principal and interest due in first nine months of 2014 | 262,800,000 | ' | 262,800,000 | ' | ' | ' |
Unencumbered personal loans | 1,400,000,000 | ' | 1,400,000,000 | ' | ' | ' |
Unencumbered real estate loans | 1,000,000,000 | ' | 1,000,000,000 | ' | ' | ' |
Note receivable from parent | 537,989,000 | ' | 537,989,000 | ' | 537,989,000 | ' |
SFI | ' | ' | ' | ' | ' | ' |
Risks and Uncertainties Disclosures | ' | ' | ' | ' | ' | ' |
Note receivable from parent | $538,000,000 | ' | $538,000,000 | ' | $538,000,000 | ' |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | ' | $3,728 | ' | $11,852 |
Interest cost | 3,589 | 4,790 | 10,769 | 14,345 |
Expected return on assets | -3,874 | -5,159 | -11,622 | -15,530 |
Amortization of net loss | 12 | 23 | 35 | 296 |
Net periodic benefit cost | -273 | 3,382 | -818 | 10,963 |
Postretirement | ' | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' | ' |
Service cost | 81 | 76 | 242 | 234 |
Interest cost | 64 | 71 | 193 | 214 |
Curtailment gain | ' | ' | ' | -110 |
Net periodic benefit cost | $145 | $147 | $435 | $338 |
Benefit_Plans_Details_2
Benefit Plans (Details 2) (RSUs, USD $) | 3 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Oct. 09, 2013 |
Springleaf Holdings, LLC | Subsequent event | Subsequent event | ||
SHI | ||||
Grant of restricted stock units | ' | ' | ' | ' |
Share-based compensation expense | $131.30 | $131.30 | ' | ' |
Percentage of outstanding shares into which equity awards are converted to rights | ' | ' | ' | 8.20% |
Period of restriction upon sale and transfer of shares of common stock underlying equity awards | ' | ' | '5 years | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
item | item | item | ||||
Segment Information | ' | ' | ' | ' | ' | ' |
Number of business segments | ' | ' | ' | 3 | ' | ' |
Number of states in which personal loans are originated and serviced | 26 | ' | ' | 26 | ' | ' |
Number of states where personal lending and retail sales financing ceased as a result of restructuring activities | ' | ' | 14 | ' | ' | ' |
Interest income: | ' | ' | ' | ' | ' | ' |
Finance charges | $417,627,000 | $416,855,000 | ' | $1,235,483,000 | $1,269,966,000 | ' |
Finance receivables held for sale originated as held for investment | ' | 346,000 | ' | ' | 2,740,000 | ' |
Total interest income | 417,627,000 | 417,201,000 | ' | 1,235,483,000 | 1,272,706,000 | ' |
Interest expense | 205,036,000 | 267,085,000 | ' | 646,932,000 | 823,334,000 | ' |
Net interest income | 212,591,000 | 150,116,000 | ' | 588,551,000 | 449,372,000 | ' |
Provision for finance receivable losses | 97,414,000 | 90,836,000 | ' | 262,142,000 | 227,430,000 | ' |
Net interest income after provision for finance receivable losses | 115,177,000 | 59,280,000 | ' | 326,409,000 | 221,942,000 | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Insurance | 38,277,000 | 31,719,000 | ' | 107,144,000 | 93,042,000 | ' |
Investment | 6,756,000 | 5,747,000 | ' | 26,291,000 | 21,378,000 | ' |
Net gain (loss) on repurchases and repayments of debt | -34,503,000 | -10,670,000 | ' | -34,558,000 | -11,750,000 | ' |
Other | 5,514,000 | 1,853,000 | ' | 20,874,000 | -19,204,000 | ' |
Total other revenues | 16,044,000 | 28,649,000 | ' | 119,751,000 | 83,466,000 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Salaries and benefits | 209,625,000 | 78,122,000 | ' | 363,163,000 | 241,114,000 | ' |
Other operating expenses | 52,110,000 | 71,774,000 | ' | 151,034,000 | 214,157,000 | ' |
Restructuring expenses | ' | ' | ' | ' | 23,503,000 | ' |
Insurance losses and loss adjustment expenses | 16,550,000 | 15,152,000 | ' | 47,650,000 | 42,302,000 | ' |
Total other expenses | 278,285,000 | 165,048,000 | ' | 561,847,000 | 521,076,000 | ' |
Income (loss) before provision for (benefit from) income taxes | -147,064,000 | -77,119,000 | ' | -115,687,000 | -215,668,000 | ' |
Assets | 13,919,428,000 | 15,056,605,000 | ' | 13,919,428,000 | 15,056,605,000 | 14,654,771,000 |
RSUs | ' | ' | ' | ' | ' | ' |
Information about segments as well as reconciliations to condensed consolidated financial statement amounts | ' | ' | ' | ' | ' | ' |
Non-cash stock compensation expense | 131,300,000 | ' | ' | ' | ' | ' |
Total Historical Accounting Basis | ' | ' | ' | ' | ' | ' |
Interest income: | ' | ' | ' | ' | ' | ' |
Finance charges | 367,167,000 | 370,100,000 | ' | 1,086,392,000 | 1,131,852,000 | ' |
Finance receivables held for sale originated as held for investment | ' | 344,000 | ' | ' | 2,734,000 | ' |
Total interest income | ' | 370,444,000 | ' | ' | 1,134,586,000 | ' |
Interest expense | 170,898,000 | 208,008,000 | ' | 541,648,000 | 637,895,000 | ' |
Net interest income | 196,269,000 | 162,436,000 | ' | 544,744,000 | 496,691,000 | ' |
Provision for finance receivable losses | 83,366,000 | -87,010,000 | ' | 242,161,000 | 28,179,000 | ' |
Net interest income after provision for finance receivable losses | 112,903,000 | 249,446,000 | ' | 302,583,000 | 468,512,000 | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Insurance | 38,284,000 | 31,741,000 | ' | 107,172,000 | 93,134,000 | ' |
Investment | 8,308,000 | 7,976,000 | ' | 31,054,000 | 28,226,000 | ' |
Net gain (loss) on repurchases and repayments of debt | -20,772,000 | 11,575,000 | ' | -42,143,000 | 21,048,000 | ' |
Other | 5,480,000 | -7,823,000 | ' | 21,008,000 | -30,981,000 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Salaries and benefits | 209,678,000 | 78,246,000 | ' | 363,323,000 | 241,497,000 | ' |
Other operating expenses | 51,007,000 | 65,240,000 | ' | 147,616,000 | 204,799,000 | ' |
Restructuring expenses | ' | ' | ' | ' | 23,503,000 | ' |
Insurance losses and loss adjustment expenses | 16,849,000 | 15,360,000 | ' | 48,373,000 | 43,076,000 | ' |
Total other expenses | 277,534,000 | 158,846,000 | ' | 559,312,000 | 512,875,000 | ' |
Income (loss) before provision for (benefit from) income taxes | -133,331,000 | 134,069,000 | ' | -139,638,000 | 67,064,000 | ' |
Assets | 14,552,892,000 | 15,905,465,000 | ' | 14,552,892,000 | 15,905,465,000 | ' |
Push-down Accounting Adjustment | ' | ' | ' | ' | ' | ' |
Interest income: | ' | ' | ' | ' | ' | ' |
Finance charges | 50,460,000 | 46,755,000 | ' | 149,091,000 | 138,114,000 | ' |
Finance receivables held for sale originated as held for investment | ' | 2,000 | ' | ' | 6,000 | ' |
Total interest income | ' | 46,757,000 | ' | ' | 138,120,000 | ' |
Interest expense | 34,138,000 | 59,077,000 | ' | 105,284,000 | 185,439,000 | ' |
Net interest income | 16,322,000 | -12,320,000 | ' | 43,807,000 | -47,319,000 | ' |
Provision for finance receivable losses | 14,048,000 | 177,846,000 | ' | 19,981,000 | 199,251,000 | ' |
Net interest income after provision for finance receivable losses | 2,274,000 | -190,166,000 | ' | 23,826,000 | -246,570,000 | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Insurance | -7,000 | -22,000 | ' | -28,000 | -92,000 | ' |
Investment | -1,552,000 | -2,229,000 | ' | -4,763,000 | -6,848,000 | ' |
Net gain (loss) on repurchases and repayments of debt | -13,731,000 | -22,245,000 | ' | 7,585,000 | -32,798,000 | ' |
Other | 34,000 | 9,676,000 | ' | -134,000 | 11,777,000 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Salaries and benefits | -53,000 | -124,000 | ' | -160,000 | -383,000 | ' |
Other operating expenses | 1,103,000 | 6,534,000 | ' | 3,418,000 | 9,358,000 | ' |
Insurance losses and loss adjustment expenses | -299,000 | -208,000 | ' | -723,000 | -774,000 | ' |
Total other expenses | 751,000 | 6,202,000 | ' | 2,535,000 | 8,201,000 | ' |
Income (loss) before provision for (benefit from) income taxes | -13,733,000 | -211,188,000 | ' | 23,951,000 | -282,732,000 | ' |
Assets | -633,464,000 | -848,860,000 | ' | -633,464,000 | -848,860,000 | ' |
Consumer | ' | ' | ' | ' | ' | ' |
Interest income: | ' | ' | ' | ' | ' | ' |
Finance charges | 188,294,000 | 149,333,000 | ' | 519,315,000 | 429,564,000 | ' |
Total interest income | ' | 149,333,000 | ' | ' | 429,564,000 | ' |
Interest expense | 38,260,000 | 35,434,000 | ' | 111,399,000 | 102,129,000 | ' |
Net interest income | 150,034,000 | 113,899,000 | ' | 407,916,000 | 327,435,000 | ' |
Provision for finance receivable losses | 38,111,000 | 17,633,000 | ' | 52,126,000 | 46,471,000 | ' |
Net interest income after provision for finance receivable losses | 111,923,000 | 96,266,000 | ' | 355,790,000 | 280,964,000 | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Net gain (loss) on repurchases and repayments of debt | -2,892,000 | 3,234,000 | ' | -4,391,000 | 5,881,000 | ' |
Other | 493,000 | -1,980,000 | ' | 1,256,000 | -2,250,000 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Salaries and benefits | 58,593,000 | 60,970,000 | ' | 182,051,000 | 185,261,000 | ' |
Other operating expenses | 30,867,000 | 24,585,000 | ' | 89,642,000 | 88,691,000 | ' |
Restructuring expenses | ' | ' | ' | ' | 15,634,000 | ' |
Total other expenses | 89,460,000 | 85,555,000 | ' | 271,693,000 | 289,586,000 | ' |
Income (loss) before provision for (benefit from) income taxes | 35,150,000 | 22,541,000 | ' | 124,258,000 | 24,766,000 | ' |
Assets | 3,075,404,000 | 2,536,917,000 | ' | 3,075,404,000 | 2,536,917,000 | ' |
Insurance | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Insurance | 38,266,000 | 31,718,000 | ' | 107,114,000 | 93,050,000 | ' |
Investment | 8,308,000 | 7,976,000 | ' | 31,054,000 | 28,226,000 | ' |
Other | 2,426,000 | 1,543,000 | ' | 6,797,000 | 3,173,000 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Salaries and benefits | 7,285,000 | 2,890,000 | ' | 11,402,000 | 8,660,000 | ' |
Other operating expenses | 3,288,000 | 2,097,000 | ' | 8,369,000 | 8,215,000 | ' |
Restructuring expenses | ' | ' | ' | ' | 229,000 | ' |
Insurance losses and loss adjustment expenses | 16,849,000 | 15,360,000 | ' | 48,373,000 | 43,076,000 | ' |
Total other expenses | 27,422,000 | 20,347,000 | ' | 68,144,000 | 60,180,000 | ' |
Income (loss) before provision for (benefit from) income taxes | 6,481,000 | 10,343,000 | ' | 33,519,000 | 34,224,000 | ' |
Assets | 913,440,000 | 957,558,000 | ' | 913,440,000 | 957,558,000 | ' |
Real Estate | ' | ' | ' | ' | ' | ' |
Interest income: | ' | ' | ' | ' | ' | ' |
Finance charges | 168,872,000 | 198,164,000 | ' | 529,446,000 | 619,312,000 | ' |
Finance receivables held for sale originated as held for investment | ' | 344,000 | ' | ' | 2,734,000 | ' |
Total interest income | ' | 198,508,000 | ' | ' | 622,046,000 | ' |
Interest expense | 129,309,000 | 165,303,000 | ' | 418,051,000 | 508,368,000 | ' |
Net interest income | 39,563,000 | 33,205,000 | ' | 111,395,000 | 113,678,000 | ' |
Provision for finance receivable losses | 42,863,000 | -107,306,000 | ' | 193,391,000 | -25,488,000 | ' |
Net interest income after provision for finance receivable losses | -3,300,000 | 140,511,000 | ' | -81,996,000 | 139,166,000 | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Net gain (loss) on repurchases and repayments of debt | -17,175,000 | 7,565,000 | ' | -36,775,000 | 13,755,000 | ' |
Other | -1,841,000 | -13,143,000 | ' | -1,372,000 | -47,873,000 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Salaries and benefits | 7,551,000 | 7,052,000 | ' | 20,541,000 | 21,845,000 | ' |
Other operating expenses | 14,785,000 | 14,570,000 | ' | 43,431,000 | 59,224,000 | ' |
Restructuring expenses | ' | ' | ' | ' | 818,000 | ' |
Total other expenses | 22,336,000 | 21,622,000 | ' | 63,972,000 | 81,887,000 | ' |
Income (loss) before provision for (benefit from) income taxes | -44,610,000 | 113,340,000 | ' | -184,015,000 | 23,226,000 | ' |
Assets | 8,762,800,000 | 9,966,285,000 | ' | 8,762,800,000 | 9,966,285,000 | ' |
Other | ' | ' | ' | ' | ' | ' |
Interest income: | ' | ' | ' | ' | ' | ' |
Finance charges | 10,001,000 | 22,603,000 | ' | 37,631,000 | 82,976,000 | ' |
Total interest income | ' | 22,603,000 | ' | ' | 82,976,000 | ' |
Interest expense | 3,329,000 | 7,271,000 | ' | 12,198,000 | 27,398,000 | ' |
Net interest income | 6,672,000 | 15,332,000 | ' | 25,433,000 | 55,578,000 | ' |
Provision for finance receivable losses | 2,392,000 | 2,663,000 | ' | -3,356,000 | 7,196,000 | ' |
Net interest income after provision for finance receivable losses | 4,280,000 | 12,669,000 | ' | 28,789,000 | 48,382,000 | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Insurance | 18,000 | 23,000 | ' | 58,000 | 84,000 | ' |
Net gain (loss) on repurchases and repayments of debt | -705,000 | 776,000 | ' | -977,000 | 1,412,000 | ' |
Other | 4,402,000 | 5,757,000 | ' | 14,327,000 | 15,969,000 | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' |
Salaries and benefits | 136,249,000 | 7,334,000 | ' | 149,329,000 | 25,731,000 | ' |
Other operating expenses | 2,067,000 | 23,988,000 | ' | 6,174,000 | 48,669,000 | ' |
Restructuring expenses | ' | ' | ' | ' | 6,822,000 | ' |
Total other expenses | 138,316,000 | 31,322,000 | ' | 155,503,000 | 81,222,000 | ' |
Income (loss) before provision for (benefit from) income taxes | -130,352,000 | -12,155,000 | ' | -113,400,000 | -15,152,000 | ' |
Assets | 1,801,248,000 | 2,444,705,000 | ' | 1,801,248,000 | 2,444,705,000 | ' |
Operating segments | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Total other revenues | 16,044,000 | 28,649,000 | ' | 119,751,000 | 83,466,000 | ' |
Operating segments | Total Historical Accounting Basis | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Total other revenues | 31,300,000 | 43,469,000 | ' | 117,091,000 | 111,427,000 | ' |
Operating segments | Push-down Accounting Adjustment | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Total other revenues | -15,256,000 | -14,820,000 | ' | 2,660,000 | -27,961,000 | ' |
Operating segments | Consumer | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Total other revenues | 12,687,000 | 11,830,000 | ' | 40,161,000 | 33,388,000 | ' |
Operating segments | Insurance | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Total other revenues | 33,903,000 | 30,690,000 | ' | 101,663,000 | 94,404,000 | ' |
Operating segments | Real Estate | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Total other revenues | -18,974,000 | -5,549,000 | ' | -38,047,000 | -34,053,000 | ' |
Operating segments | Other | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Total other revenues | 3,684,000 | 6,498,000 | ' | 13,314,000 | 17,688,000 | ' |
Intersegment | Consumer | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Intersegment - insurance commissions | 15,086,000 | 10,576,000 | ' | 43,296,000 | 29,757,000 | ' |
Intersegment | Insurance | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Intersegment - insurance commissions | -15,097,000 | -10,547,000 | ' | -43,302,000 | -30,045,000 | ' |
Intersegment | Real Estate | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Intersegment - insurance commissions | 42,000 | 29,000 | ' | 100,000 | 65,000 | ' |
Intersegment | Other | ' | ' | ' | ' | ' | ' |
Other revenues: | ' | ' | ' | ' | ' | ' |
Intersegment - insurance commissions | ($31,000) | ($58,000) | ' | ($94,000) | $223,000 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investment securities | $567,611 | $668,539 |
Restricted cash | 346,631 | 113,703 |
Fair Value Measurements Using Level 1 | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 1,048,751 | 1,357,212 |
Investment securities | 100 | 255 |
Restricted cash | 346,631 | 113,703 |
Fair Value Measurements Using Level 2 | ' | ' |
Assets | ' | ' |
Investment securities | 541,676 | 639,148 |
Note receivable from parent | 537,989 | 537,989 |
Other assets: | ' | ' |
Receivables from parent and affiliates | 17,664 | 16,196 |
Liabilities | ' | ' |
Long-term debt | 12,694,404 | 12,912,712 |
Payable to affiliate | ' | 30,750 |
Fair Value Measurements Using Level 2 | Cross currency interest rate derivative | ' | ' |
Other assets: | ' | ' |
Derivative Assets | ' | 26,699 |
Fair Value Measurements Using Level 3 | ' | ' |
Assets | ' | ' |
Investment securities | 26,431 | 29,767 |
Net finance receivables, less allowance for finance receivable losses | 11,097,113 | 11,608,720 |
Other assets: | ' | ' |
Commercial mortgage loans | 94,885 | 99,933 |
Escrow advance receivable | 19,674 | 18,520 |
Total Fair Value | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 1,048,751 | 1,357,212 |
Investment securities | 568,207 | 669,170 |
Net finance receivables, less allowance for finance receivable losses | 11,097,113 | 11,608,720 |
Note receivable from parent | 537,989 | 537,989 |
Restricted cash | 346,631 | 113,703 |
Other assets: | ' | ' |
Commercial mortgage loans | 94,885 | 99,933 |
Escrow advance receivable | 19,674 | 18,520 |
Receivables from parent and affiliates | 17,664 | 16,196 |
Liabilities | ' | ' |
Long-term debt | 12,694,404 | 12,912,712 |
Payable to affiliate | ' | 30,750 |
Total Fair Value | Cross currency interest rate derivative | ' | ' |
Other assets: | ' | ' |
Derivative Assets | ' | 26,699 |
Total Carrying Value | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 1,048,751 | 1,357,212 |
Investment securities | 568,207 | 669,170 |
Net finance receivables, less allowance for finance receivable losses | 10,969,326 | 11,516,591 |
Note receivable from parent | 537,989 | 537,989 |
Restricted cash | 346,631 | 113,703 |
Other assets: | ' | ' |
Commercial mortgage loans | 102,798 | 110,398 |
Escrow advance receivable | 19,674 | 18,520 |
Receivables from parent and affiliates | 17,664 | 16,196 |
Liabilities | ' | ' |
Long-term debt | 11,740,773 | 12,454,316 |
Payable to affiliate | ' | 30,750 |
Total Carrying Value | Cross currency interest rate derivative | ' | ' |
Other assets: | ' | ' |
Derivative Assets | ' | $26,699 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Assets | ' | ' | ' |
Investment securities | $567,611,000 | $668,539,000 | ' |
Total | ' | ' | ' |
Interest in a limited partnership | 600,000 | 600,000 | 600,000 |
Stocks not carried at fair value | 900,000 | 700,000 | ' |
Investment securities: | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 565,286,000 | 666,184,000 | ' |
U.S. government and government sponsored entities | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 74,783,000 | 36,442,000 | ' |
Obligations of states, municipalities, and political subdivisions | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 94,974,000 | 140,224,000 | ' |
Corporate debt | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 222,640,000 | 287,689,000 | ' |
RMBS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 139,136,000 | 172,209,000 | ' |
CMBS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 20,214,000 | 13,052,000 | ' |
CDO/ABS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 13,539,000 | 16,568,000 | ' |
Other long-term investments | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 1,375,000 | 1,380,000 | ' |
Common stocks | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 950,000 | 975,000 | ' |
Fair Value Measurements Using Level 1 | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 100,000 | 255,000 | ' |
Fair Value Measurements Using Level 2 | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 541,676,000 | 639,148,000 | ' |
Fair Value Measurements Using Level 2 | Cross currency interest rate derivative | ' | ' | ' |
Assets | ' | ' | ' |
Derivative Assets | ' | 26,699,000 | ' |
Fair Value Measurements Using Level 3 | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 26,431,000 | 29,767,000 | ' |
Recurring basis | Fair Value Measurements Using Level 1 | ' | ' | ' |
Assets | ' | ' | ' |
Cash and cash equivalents in mutual funds | 264,135,000 | 630,227,000 | ' |
Investment securities | 100,000 | 255,000 | ' |
Restricted cash in mutual funds | 284,816,000 | 93,781,000 | ' |
Total | ' | ' | ' |
Total | 549,051,000 | 724,263,000 | ' |
Recurring basis | Fair Value Measurements Using Level 1 | Common stocks | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 100,000 | 255,000 | ' |
Recurring basis | Fair Value Measurements Using Level 2 | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 541,676,000 | 639,148,000 | ' |
Total | ' | ' | ' |
Total | 541,676,000 | 665,847,000 | ' |
Recurring basis | Fair Value Measurements Using Level 2 | Cross currency interest rate derivative | ' | ' | ' |
Assets | ' | ' | ' |
Derivative Assets | ' | 26,699,000 | ' |
Recurring basis | Fair Value Measurements Using Level 2 | Investment securities: | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 541,676,000 | 639,148,000 | ' |
Recurring basis | Fair Value Measurements Using Level 2 | U.S. government and government sponsored entities | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 74,783,000 | 36,442,000 | ' |
Recurring basis | Fair Value Measurements Using Level 2 | Obligations of states, municipalities, and political subdivisions | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 94,974,000 | 140,224,000 | ' |
Recurring basis | Fair Value Measurements Using Level 2 | Corporate debt | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 207,550,000 | 274,272,000 | ' |
Recurring basis | Fair Value Measurements Using Level 2 | RMBS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 139,051,000 | 172,135,000 | ' |
Recurring basis | Fair Value Measurements Using Level 2 | CMBS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 20,212,000 | 12,899,000 | ' |
Recurring basis | Fair Value Measurements Using Level 2 | CDO/ABS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 5,106,000 | 3,176,000 | ' |
Recurring basis | Fair Value Measurements Using Level 3 | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 24,985,000 | 28,416,000 | ' |
Total | ' | ' | ' |
Total | 24,985,000 | 28,416,000 | ' |
Recurring basis | Fair Value Measurements Using Level 3 | Investment securities: | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 23,610,000 | 27,036,000 | ' |
Recurring basis | Fair Value Measurements Using Level 3 | Corporate debt | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 15,090,000 | 13,417,000 | ' |
Recurring basis | Fair Value Measurements Using Level 3 | RMBS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 85,000 | 74,000 | ' |
Recurring basis | Fair Value Measurements Using Level 3 | CMBS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 2,000 | 153,000 | ' |
Recurring basis | Fair Value Measurements Using Level 3 | CDO/ABS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 8,433,000 | 13,392,000 | ' |
Recurring basis | Fair Value Measurements Using Level 3 | Other long-term investments | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 1,375,000 | 1,380,000 | ' |
Recurring basis | Total Carried At Fair Value | ' | ' | ' |
Assets | ' | ' | ' |
Cash and cash equivalents in mutual funds | 264,135,000 | 630,227,000 | ' |
Investment securities | 566,761,000 | 667,819,000 | ' |
Restricted cash in mutual funds | 284,816,000 | 93,781,000 | ' |
Total | ' | ' | ' |
Total | 1,115,712,000 | 1,418,526,000 | ' |
Recurring basis | Total Carried At Fair Value | Cross currency interest rate derivative | ' | ' | ' |
Assets | ' | ' | ' |
Derivative Assets | ' | 26,699,000 | ' |
Recurring basis | Total Carried At Fair Value | Investment securities: | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 565,286,000 | 666,184,000 | ' |
Recurring basis | Total Carried At Fair Value | U.S. government and government sponsored entities | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 74,783,000 | 36,442,000 | ' |
Recurring basis | Total Carried At Fair Value | Obligations of states, municipalities, and political subdivisions | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 94,974,000 | 140,224,000 | ' |
Recurring basis | Total Carried At Fair Value | Corporate debt | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 222,640,000 | 287,689,000 | ' |
Recurring basis | Total Carried At Fair Value | RMBS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 139,136,000 | 172,209,000 | ' |
Recurring basis | Total Carried At Fair Value | CMBS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 20,214,000 | 13,052,000 | ' |
Recurring basis | Total Carried At Fair Value | CDO/ABS | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 13,539,000 | 16,568,000 | ' |
Recurring basis | Total Carried At Fair Value | Other long-term investments | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 1,375,000 | 1,380,000 | ' |
Recurring basis | Total Carried At Fair Value | Common stocks | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | $100,000 | $255,000 | ' |
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 | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | |
Investment securities: | Investment securities: | Investment securities: | Investment securities: | Bonds: | Bonds: | Bonds: | Bonds: | Corporate debt | Corporate debt | Corporate debt | Corporate debt | RMBS | RMBS | RMBS | RMBS | CMBS | CMBS | CMBS | CMBS | CDO/ABS | CDO/ABS | CDO/ABS | CDO/ABS | Other long-term investments | Other long-term investments | Other long-term investments | Other long-term investments | Common stocks | ||||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $23,275,000 | $22,292,000 | $28,416,000 | $25,704,000 | ' | ' | ' | ' | ' | $21,797,000 | $19,585,000 | $27,036,000 | $21,574,000 | $13,114,000 | ' | $13,417,000 | $2,800,000 | $218,000 | $2,025,000 | $74,000 | $1,914,000 | $7,864,000 | $153,000 | $7,944,000 | $2,000 | $8,463,000 | $9,696,000 | $13,392,000 | $8,916,000 | $1,478,000 | $2,707,000 | $1,380,000 | $4,127,000 | $3,000 |
Net gains (losses) included in: Other revenues | -9,000 | -155,000 | 463,000 | ' | ' | ' | ' | ' | ' | -9,000 | -155,000 | 461,000 | 5,000 | -58,000 | -19,000 | -167,000 | -16,000 | ' | -207,000 | -35,000 | -171,000 | -29,000 | -8,000 | -40,000 | ' | 49,000 | 100,000 | 671,000 | 232,000 | ' | ' | 2,000 | ' | -5,000 |
Net gains (losses) included in: Other comprehensive income (loss) | -222,000 | -112,000 | -174,000 | 922,000 | ' | ' | ' | ' | ' | -119,000 | 84,000 | -178,000 | 1,600,000 | 18,000 | 8,000 | 305,000 | 192,000 | -133,000 | -362,000 | 46,000 | -170,000 | 59,000 | 6,000 | 342,000 | ' | -4,000 | 379,000 | -535,000 | 1,236,000 | -103,000 | -196,000 | 4,000 | -680,000 | 2,000 |
Purchases, sales, issues, settlements | 1,941,000 | -781,000 | -3,720,000 | -5,382,000 | ' | 1,941,000 | ' | -3,720,000 | ' | 1,941,000 | -781,000 | -3,709,000 | -4,446,000 | 2,016,000 | ' | 1,535,000 | -2,987,000 | ' | -62,000 | ' | -179,000 | -456,000 | -149,000 | -808,000 | ' | -75,000 | -263,000 | -5,095,000 | -472,000 | ' | ' | -11,000 | -936,000 | ' |
Transfers into Level 3 | ' | 19,302,000 | ' | 19,302,000 | ' | ' | ' | ' | ' | ' | 19,302,000 | ' | 19,302,000 | ' | 14,133,000 | ' | 14,133,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,169,000 | ' | 5,169,000 | ' | ' | ' | ' | ' |
Transfers out of Level 3 | ' | -9,372,000 | ' | -9,372,000 | ' | ' | ' | ' | ' | ' | -9,372,000 | ' | -9,372,000 | ' | ' | ' | ' | ' | -1,304,000 | ' | -1,304,000 | -7,159,000 | ' | -7,159,000 | ' | ' | -909,000 | ' | -909,000 | ' | ' | ' | ' | ' |
Balance at end of period | 24,985,000 | 31,174,000 | 24,985,000 | 31,174,000 | ' | ' | ' | ' | ' | 23,610,000 | 28,663,000 | 23,610,000 | 28,663,000 | 15,090,000 | 14,122,000 | 15,090,000 | 14,122,000 | 85,000 | 90,000 | 85,000 | 90,000 | 279,000 | 2,000 | 279,000 | 2,000 | 8,433,000 | 14,172,000 | 8,433,000 | 14,172,000 | 1,375,000 | 2,511,000 | 1,375,000 | 2,511,000 | ' |
Purchases, sales, or issues of investment securities | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest in a limited partnership | 600,000 | 600,000 | 600,000 | 600,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains or losses recognized in earnings | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases | ' | ' | ' | ' | ' | 2,016,000 | ' | 2,016,000 | ' | ' | ' | 2,016,000 | ' | 2,016,000 | ' | 2,016,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlements | ' | ' | ' | ' | ' | -75,000 | ' | -5,736,000 | ' | ' | ' | -5,725,000 | ' | ' | ' | -481,000 | ' | ' | ' | ' | ' | ' | -149,000 | ' | ' | -75,000 | ' | -5,095,000 | ' | ' | ' | -11,000 | ' | ' |
Total | $1,941,000 | ($781,000) | ($3,720,000) | ($5,382,000) | ' | $1,941,000 | ' | ($3,720,000) | ' | $1,941,000 | ($781,000) | ($3,709,000) | ($4,446,000) | $2,016,000 | ' | $1,535,000 | ($2,987,000) | ' | ($62,000) | ' | ($179,000) | ($456,000) | ($149,000) | ($808,000) | ' | ($75,000) | ($263,000) | ($5,095,000) | ($472,000) | ' | ' | ($11,000) | ($936,000) | ' |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (Level 3, Recurring, Corporate debt, Discounted cash flows) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Minimum | ' | ' |
Unobservable Input | ' | ' |
Yield (as a percent) | 2.61% | 2.74% |
Maximum | ' | ' |
Unobservable Input | ' | ' |
Yield (as a percent) | 7.61% | 7.35% |
Weighted Average | ' | ' |
Unobservable Input | ' | ' |
Yield (as a percent) | 4.41% | 4.45% |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 5) (USD $) | 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, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | Non-recurring basis | ||
Real estate owned | Real estate owned | Real estate owned | Real estate owned | Commercial mortgage loans | Commercial mortgage loans | Commercial mortgage loans | Commercial mortgage loans | Finance receivables held for sale | Other intangible assets | Other intangible assets | Fair Value Measurements Using Level 3 | Fair Value Measurements Using Level 3 | Fair Value Measurements Using Level 3 | Fair Value Measurements Using Level 3 | Fair Value Measurements Using Level 3 | Fair Value Measurements Using Level 3 | Total | Total | Total | Total | Total | Total | ||||||
Real estate owned | Real estate owned | Commercial mortgage loans | Commercial mortgage loans | Real estate owned | Real estate owned | Commercial mortgage loans | Commercial mortgage loans | |||||||||||||||||||||
Assets measured at fair value on a non-recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets at fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $81,232 | $117,416 | $69,497 | $98,379 | $11,735 | $19,037 | $81,232 | $117,416 | $69,497 | $98,379 | $11,735 | $19,037 |
Impairment Charges | ' | ' | ' | ' | ' | 5,668 | 7,686 | 19,270 | 27,546 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment Charges | $5,046 | $5,607 | $13,867 | $17,496 | $36,565 | ' | ' | ' | ' | ($61) | $1,626 | ($1,774) | $3,093 | $1,371 | $4,555 | $4,555 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jul. 29, 2013 | 30-May-13 | 15-May-13 | Apr. 11, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 28, 2013 | Oct. 10, 2013 | Oct. 21, 2013 | Oct. 11, 2013 | Oct. 17, 2013 | Oct. 09, 2013 |
SLI | SLI | Bank of America | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Springleaf Financial Funding Company | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | |||
Secured term loan | Secured term loan | Secured term loan | Secured term loan | Secured term loan | Secured term loan | Secured term loan | SFI | SFI | SHI | Springleaf Financial Funding Company | Consolidated VIEs | Consolidated VIEs | |||||
Secured term loan | Mortgage-backed notes | Mortgage-backed notes | |||||||||||||||
The 2013-3 Trust | The 2013-3 Trust | ||||||||||||||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of notes sold under private securitization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $270,500,000 |
Weighted average yield (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.40% |
Proceeds from notes sold under securitization transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,500,000 | 269,400,000 |
Notes to be retained by the entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 228,700,000 |
Face amount | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | 1,300,000,000 | 3,800,000,000 | ' | ' | ' | ' | 22,700,000 | ' |
Prepayment of secured term loan | ' | ' | ' | ' | ' | 235,100,000 | 500,000,000 | 500,000,000 | 714,900,000 | 1,250,000,000 | ' | ' | ' | ' | 550,000,000 | ' | ' |
Proceeds from note receivable from parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 230,000,000 | 140,000,000 | ' | ' | ' | ' |
Note receivable from parent | 537,989,000 | 537,989,000 | 538,000,000 | 538,000,000 | ' | ' | ' | ' | ' | ' | ' | 168,000,000 | ' | ' | ' | ' | ' |
Number of common shares sold in initial public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,201,920 | ' | ' | ' |
Number of common shares sold to underwriters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,156,772 | ' | ' | ' |
Common stock par value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' |
Price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17 | ' | ' | ' |
Underwriting discount (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.10 | ' | ' | ' |
Estimated offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19,800,000 | ' | ' | ' |