Consumer Portfolio Services (CPSS) 10-Q 24 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 21, 2015
Document And Entity Information
Entity Registrant Name	CONSUMER PORTFOLIO SERVICES INC
Entity Central Index Key	889,609
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		26,081,055
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 18,436	$ 17,859
Restricted cash and equivalents	200,122	175,382
Finance receivables	1,784,798	1,595,956
Less: Allowance for finance credit losses	(74,541)	(61,460)
Finance receivables, net	1,710,257	1,534,496
Finance receivables measured at fair value	316	1,664
Furniture and equipment, net	1,692	1,161
Deferred financing costs	13,893	12,362
Deferred tax assets, net	42,217	42,847
Accrued interest receivable	28,079	23,372
Other assets	16,892	23,915
Total	2,031,904	1,833,058
Liabilities
Accounts payable and accrued expenses	22,367	21,660
Warehouse lines of credit	61,771	56,839
Residual interest financing	11,274	12,327
Debt secured by receivables measured at fair value	0	1,250
Securitization trust debt	1,775,574	1,598,496
Subordinated renewable notes	14,982	15,233
Total	$ 1,885,968	$ 1,705,805
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Preferred stock, $1 par value; authorized 4,998,130 shares; none issued	$ 0	$ 0
Common stock, no par value; authorized 75,000,000 shares; 26,150,459 and 24,540,640 shares issued and outstanding at June 30, 2015 and December 31, 2014 respectively	82,326	80,513
Retained earnings	68,661	51,791
Accumulated other comprehensive loss	(5,051)	(5,051)
Total	145,936	127,253
Total	2,031,904	1,833,058
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock, $1 par value; authorized 4,998,130 shares; none issued	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred stock, $1 par value; authorized 4,998,130 shares; none issued	$ 0	$ 0

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	4,998,130	4,998,130
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Authorized	75,000,000	75,000,000
Common Stock, Issued	26,150,459	24,540,640
Common Stock, Outstanding	26,150,459	24,540,640
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	5,000,000	5,000,000
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Authorized	1,870	1,870
Preferred Stock, Issued	0	0
Preferred Stock, Outstanding	0	0

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Interest income	$ 84,900	$ 68,221	$ 167,259	$ 133,217
Servicing fees	62	367	210	880
Other income	3,399	3,006	6,881	5,643
Total	88,361	71,594	174,350	139,740
Expenses:
Employee costs	13,144	11,774	27,630	22,664
General and administrative	5,108	5,075	9,944	8,678
Interest	13,688	11,942	26,861	25,323
Provision for credit losses	35,683	25,627	69,122	49,508
Marketing	4,436	3,812	8,639	7,658
Occupancy	949	908	1,904	1,595
Depreciation and amortization	153	127	301	221
Total	73,161	59,265	144,401	115,647
Income before income tax expense	15,200	12,329	29,949	24,093
Income tax expense	6,663	5,303	13,079	10,362
Net income	$ 8,537	$ 7,026	$ 16,870	$ 13,731
Earnings per share:
Basic	$ 0.33	$ 0.28	$ 0.65	$ 0.56
Diluted	$ 0.27	$ 0.22	$ 0.53	$ 0.43
Number of shares used in computing earnings per share:
Basic	26,234	25,029	25,936	24,694
Diluted	31,917	32,002	31,955	32,009

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Unaudited Condensed Consolidated Statements Of Comprehensive Income
Net income	$ 8,537	$ 7,026	$ 16,870	$ 13,731
Other comprehensive income/(loss); change in funded status of pension plan	0	0	0	0
Comprehensive income	$ 8,537	$ 7,026	$ 16,870	$ 13,731

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 16,870	$ 13,731
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of deferred acquisition fees	(5,318)	(8,922)
Accretion of purchase discount on receivables measured at fair value	0	(353)
Amortization of discount on securitization trust debt	41	76
Amortization of discount on senior secured debt, related party	0	623
Accretion of premium on debt secured by receivables measured at fair value	0	490
Mark to fair value on debt secured by receivables at fair value	0	339
Mark to fair value of receivables measured at fair value	0	8
Depreciation and amortization	301	221
Amortization of deferred financing costs	3,437	3,384
Provision for credit losses	69,122	49,508
Stock-based compensation expense	2,176	1,459
Interest income on residual assets	(65)	(236)
Changes in assets and liabilities:
Accrued interest receivable	(4,707)	(830)
Deferred tax assets, net	630	7,665
Other assets	5,697	708
Accounts payable and accrued expenses	707	(587)
Net cash provided by operating activities	88,891	67,284
Cash flows from investing activities:
Purchases of finance receivables held for investment	(503,791)	(401,266)
Payments received on finance receivables held for investment	264,226	216,698
Payments received on receivables portfolio at fair value	1,348	9,135
Proceeds received on residual interest in securitizations	0	830
Change in repossessions in inventory	1,391	(2,629)
Increases in restricted cash and cash equivalents, net	(24,740)	(22,618)
Purchase of furniture and equipment	(832)	(461)
Net cash used in investing activities	(262,398)	(200,311)
Cash flows from financing activities:
Proceeds from issuance of securitization trust debt	495,000	382,500
Proceeds from issuance of subordinated renewable notes	431	260
Payments on subordinated renewable notes	(682)	(1,364)
Net proceeds from (repayments of) warehouse lines of credit	4,932	31,838
Proceeds from (repayments of) residual interest financing debt	(1,053)	(5,017)
Repayment of securitization trust debt	(317,963)	(233,816)
Repayment of debt secured by receivables measured at fair value	(1,250)	(8,554)
Repayment of senior secured debt, related party	0	(39,182)
Payment of financing costs	(4,968)	(3,236)
Purchase of common stock	(1,773)	0
Exercise of options and warrants	1,410	1,912
Net cash provided by financing activities	174,084	125,341
Increase (decrease) in cash and cash equivalents	577	(7,686)
Cash and cash equivalents at beginning of period	17,859	22,112
Cash and cash equivalents at end of period	18,436	14,426
Cash paid during the period for:
Interest	22,941	23,289
Income taxes	$ 8,455	$ 2,514

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Description of Business We were formed in California on March 8, 1991. We specialize in purchasing and servicing retail automobile installment sale contracts (“automobile contracts” or “finance receivables”) originated by licensed motor vehicle dealers located throughout the United States (“dealers”) in the sale of new and used automobiles, light trucks and passenger vans. Through our purchases, we provide indirect financing to dealer customers for borrowers with limited credit histories or past credit problems (“sub-prime customers”). We serve as an alternative source of financing for dealers, allowing sales to customers who otherwise might not be able to obtain financing. In addition to purchasing installment purchase contracts directly from dealers, we have also (i) acquired installment purchase contracts in four merger and acquisition transactions, (ii) purchased immaterial amounts of vehicle purchase money loans from non-affiliated lenders, and (iii) lent money directly to consumers for an immaterial amount of loans secured by vehicles. In this report, we refer to all of such contracts and loans as "automobile contracts." Basis of Presentation Our Unaudited Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America, with the instructions to Form 10-Q and with Article 10 of Regulation S-X of the Securities and Exchange Commission, and include all adjustments that are, in management’s opinion, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. Results for the three and six month periods ended June 30, 2015 are not necessarily indicative of the operating results to be expected for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted from these Unaudited Condensed Consolidated Financial Statements. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2014. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Other Income The following table presents the primary components of Other Income for the three-month and six-month periods ending June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Direct mail revenues $ 2,382 $ 2,171 $ 4,519 $ 4,023 Convenience fee revenue 530 800 1,480 1,610 Recoveries on previously charged-off contracts 141 48 333 83 Sales tax refunds 144 129 150 231 Other 202 (142 ) 399 (304 ) Other income for the period $ 3,399 $ 3,006 $ 6,881 $ 5,643 Stock-based Compensation We recognize compensation costs in the financial statements for all share-based payments based on the grant date fair value estimated in accordance with the provisions of ASC 718 “Stock Compensation”. For the three and six months ended June 30, 2015, we recorded stock-based compensation costs in the amount of $1.1 million and $2.2 million, respectively. These stock-based compensation costs were $0.7 million and $1.5 million for the three and six months ended June 30, 2014. As of June 30, 2015, unrecognized stock-based compensation costs to be recognized over future periods equaled $16.7 million. This amount will be recognized as expense over a weighted-average period of 3.02 years. The following represents stock option activity for the six months ended June 30, 2015: Number of Weighted Weighted Average Shares Average Remaining (in thousands) Exercise Price Contractual Term Options outstanding at the beginning of period 10,828 $ 4.05 6.01 years Granted 1,965 6.11 N/A Exercised (971) 1.38 N/A Forfeited (271) 5.12 N/A Options outstanding at the end of period 11,551 $ 4.60 5.93 years Options exercisable at the end of period 5,763 $ 3.15 5.05 years At June 30, 2015, the aggregate intrinsic value of options outstanding and exercisable was $22.9 million and $19.5 million, respectively. There were 971,000 options exercised for the six months ended June 30, 2015 compared to 978,000 for the comparable period in 2014. The total intrinsic value of options exercised was $5.4 million and $6.7 million for the six-month periods ended June 30, 2015 and 2014. There were 5.4 million shares available for future stock option grants under existing plans as of June 30, 2015. Purchases of Company Stock During the six-month period ended June 30, 2015, we purchased 361,046 shares of our common stock, at an average price of $6.39. We purchased 285,473 shares of our stock in the open market at an average price of $6.21. The remaining purchases of 75,573 shares were related to net exercises of outstanding options and warrants. In transactions during the six-month period ended June 30, 2015, the holders of options and warrants to purchase 392,200 shares of our common stock paid the aggregate $535,000 exercise price by surrender to us of 75,573 of such 392,200 shares. During the six-month period ended June 30, 2014, we purchased 73,788 shares of our common stock, at an average price of $7.91. The purchases were related to net exercises of outstanding options and warrants. In transactions during the six-month period ended June 30, 2014, the holder of options and warrants to purchase 395,000 shares of our common stock paid the aggregate $583,000 exercise price by surrender to us of 73,788 of such 395,000 shares. Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or total shareholders’ equity. Financial Covenants Certain of our securitization transactions, our warehouse credit facilities and our residual interest financing contain various financial covenants requiring minimum financial ratios and results. Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. As of June 30, 2015, we were in compliance with all such covenants. In addition, certain securitization and non-securitization related debt agreements contain cross-default provisions that would allow certain creditors to declare a default if a default occurred under a different facility. Provision for Contingent Liabilities We are routinely involved in various legal proceedings resulting from our consumer finance activities and practices, both continuing and discontinued. Our legal counsel has advised us on such matters where, based on information available at the time of this report, there is an indication that it is both probable that a liability has been incurred and the amount of the loss can be reasonably determined. We have recorded a liability as of June 30, 2015, which represents our best estimate of probable incurred losses for legal contingencies. The amount of losses that may ultimately be incurred cannot be estimated with certainty.

2. Finance Receivables

2. Finance Receivables	6 Months Ended
	Jun. 30, 2015
Finance Receivables
Finance Receivables	Our portfolio of finance receivables consists of small-balance homogeneous contracts comprising a single segment and class that is collectively evaluated for impairment on a portfolio basis according to delinquency status. Our contract purchase guidelines are designed to produce a homogenous portfolio. For key terms such as interest rate, length of contract, monthly payment and amount financed, there is relatively little variation from the average for the portfolio. We report delinquency on a contractual basis. Once a contract becomes greater than 90 days delinquent, we do not recognize additional interest income until the obligor under the contract makes sufficient payments to be less than 90 days delinquent. Any payments received on a contract that is greater than 90 days delinquent are first applied to accrued interest and then to principal reduction. The following table presents the components of Finance Receivables, net of unearned interest: June 30, December 31, 2015 2014 Finance Receivables (In thousands) Automobile finance receivables, net of unearned interest $ 1,796,077 $ 1,612,246 Less: Unearned acquisition fees and originations costs (11,279 ) (16,290 ) Finance Receivables $ 1,784,798 $ 1,595,956 We consider an automobile contract delinquent when an obligor fails to make at least 90% of a contractually due payment by the following due date, which date may have been extended within limits specified in the servicing agreements. The period of delinquency is based on the number of days payments are contractually past due, as extended where applicable. Automobile contracts less than 31 days delinquent are not included. In certain circumstances we will grant obligors one-month payment extensions to assist them with temporary cash flow problems. The only modification of terms is to advance the obligor’s next due date by one month and extend the maturity date of the receivable by one month. In certain limited cases, a two-month extension may be granted. There are no other concessions such as a reduction in interest rate, forgiveness of principal or of accrued interest. Accordingly, we consider such extensions to be insignificant delays in payments rather than troubled debt restructurings. The following table summarizes the delinquency status of finance receivables as of June 30, 2015 and December 31, 2014: June 30, December 31, 2015 2014 (In thousands) Delinquency Status Current $ 1,684,617 $ 1,523,020 31 - 60 days 52,704 42,730 61 - 90 days 27,064 23,300 91 + days 31,692 23,196 $ 1,796,077 $ 1,612,246 Finance receivables totaling $31.7 million and $23.2 million at June 30, 2015 and December 31, 2014, respectively, including all receivables greater than 90 days delinquent, have been placed on non-accrual status as a result of their delinquency status. We use a loss allowance methodology commonly referred to as "static pooling," which stratifies our finance receivable portfolio into separately identified pools based on the period of origination. Using analytical and formula driven techniques, we estimate an allowance for finance credit losses, which we believe is adequate for probable incurred credit losses that can be reasonably estimated in our portfolio of automobile contracts. The estimate for probable incurred credit losses is reduced by our estimate for future recoveries on previously incurred losses. Provision for losses is charged to our consolidated statement of operations. Net losses incurred on finance receivables are charged to the allowance. We establish the allowance for new receivables over the 12-month period following their acquisition. The following table presents a summary of the activity for the allowance for finance credit losses for the three-month and six-month periods ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Balance at beginning of period $ 68,142 $ 44,652 $ 61,460 $ 39,626 Provision for credit losses on finance receivables 35,683 25,627 69,122 49,508 Charge-offs (34,836 ) (26,985 ) (66,665 ) (50,526 ) Recoveries 5,552 10,032 10,624 14,718 Balance at end of period $ 74,541 $ 53,326 $ 74,541 $ 53,326 Excluded from finance receivables are contracts that were previously classified as finance receivables but were reclassified as other assets because we have repossessed the vehicle securing the Contract. The following table presents a summary of such repossessed inventory together with the allowance for losses in repossessed inventory that is not included in the allowance for finance credit losses: June 30, December 31, 2015 2014 (In thousands) Gross balance of repossessions in inventory $ 24,878 $ 28,234 Allowance for losses on repossessed inventory (15,864 ) (17,829 ) Net repossessed inventory included in other assets $ 9,014 $ 10,405

3. Finance Receivables Measured

3. Finance Receivables Measured at Fair Value	6 Months Ended
	Jun. 30, 2015
Finance Receivables Measured At Fair Value
Finance Receivables Measured at Fair Value	In September 2011 we purchased approximately $217.8 million of finance receivables from Fireside Bank. These receivables are recorded on our balance sheet at fair value. The following table presents the components of Finance Receivables measured at fair value: June 30, December 31, 2015 2014 Finance Receivables Measured at Fair Value (In thousands) Finance receivables and accrued interest, net of unearned interest $ 316 $ 1,664 Less: Fair value adjustment – – Finance receivables measured at fair value $ 316 $ 1,664 The following table summarizes the delinquency status of finance receivables measured at fair value as of June 30, 2015 and December 31, 2014: June 30, December 31, 2015 2014 (In thousands) Delinquency Status Current $ 202 $ 1,266 31 - 60 days 58 262 61 - 90 days 30 74 91 + days 26 62 $ 316 $ 1,664

4. Securitization Trust Debt

4. Securitization Trust Debt	6 Months Ended
	Jun. 30, 2015
Securitization Trust Debt
Securitization Trust Debt	We have completed many securitization transactions that are structured as secured borrowings for financial accounting purposes. The debt issued in these transactions is shown on our Unaudited Condensed Consolidated Balance Sheets as “Securitization trust debt,” and the components of such debt are summarized in the following table: Final Scheduled Receivables Pledged at Outstanding Principal at Outstanding Principal at Weighted Average Contractual Interest Rate at Payment June 30, Initial June 30, December 31, June 30, Series Date (1) 2015 (2) Principal 2015 2014 2015 (Dollars in thousands) CPS 2011-A April 2018 $ – $ 100,364 $ – $ 8,457 – CPS 2011-B September 2018 16,276 109,936 15,805 22,985 4.45% CPS 2011-C March 2019 21,828 119,400 21,794 30,601 4.90% CPS 2012-A June 2019 26,812 155,000 25,311 35,923 3.26% CPS 2012-B September 2019 38,128 141,500 37,281 50,125 3.07% CPS 2012-C December 2019 43,231 147,000 42,302 55,619 2.39% CPS 2012-D March 2020 52,348 160,000 51,078 67,833 2.02% CPS 2013-A June 2020 76,253 185,000 75,479 97,775 1.93% CPS 2013-B September 2020 93,333 205,000 92,611 118,692 2.42% CPS 2013-C December 2020 107,454 205,000 106,571 133,628 3.03% CPS 2013-D March 2021 106,445 183,000 105,390 132,150 2.67% CPS 2014-A June 2021 117,005 180,000 116,084 143,456 2.24% CPS 2014-B September 2021 150,384 202,500 149,774 177,601 2.01% CPS 2014-C December 2021 224,185 273,000 222,119 256,151 2.22% CPS 2014-D March 2022 237,229 267,500 233,956 267,500 2.46% CPS 2015-A June 2022 232,950 245,000 230,019 – 2.36% CPS 2015-B (3) September 2022 248,347 250,000 250,000 – 2.47% $ 1,792,208 $ 3,129,200 $ 1,775,574 $ 1,598,496 _________________ (1) The Final Scheduled Payment Date represents final legal maturity of the securitization trust debt. Securitization trust debt is expected to become due and to be paid prior to those dates, based on amortization of the finance receivables pledged to the trusts. Expected payments, which will depend on the performance of such receivables, as to which there can be no assurance, are $342.7 million in 2015, $582.2 million in 2016, $426.2 million in 2017, $256.5 million in 2018, $129.4 million in 2019 and $38.6 million in 2020. (2) Includes repossessed assets that are included in Other assets on our Unaudited Condensed Consolidated Balance Sheet. (3) Includes $94.9 million of receivables that were pledged to CPS 2015-B after June 30, 2015, on July 8, 2015. All of the securitization trust debt was sold in private placement transactions to qualified institutional buyers. The debt was issued through our wholly-owned bankruptcy remote subsidiaries and is secured by the assets of such subsidiaries, but not by our other assets. The terms of the securitization agreements related to the issuance of the securitization trust debt and the warehouse credit facilities require that we meet certain delinquency and credit loss criteria with respect to the pool of receivables, and certain of the agreements require that we maintain minimum levels of liquidity and not exceed maximum leverage levels. In addition, certain securitization and non-securitization related debt contain cross-default provisions, which would allow certain creditors to declare a default if a default were declared under a different facility. As of June 30, 2015, we were in compliance with all such covenants. We are responsible for the administration and collection of the automobile contracts. The securitization agreements also require certain funds be held in restricted cash accounts to provide additional collateral for the borrowings, to be applied to make payments on the securitization trust debt or as pre-funding proceeds from a term securitization prior to the purchase of additional collateral. As of June 30, 2015, restricted cash under the various agreements totaled approximately $200.1 million, of which $94.9 million represented pre-funding proceeds. Interest expense on the securitization trust debt consists of the stated rate of interest plus amortization of additional costs of borrowing. Additional costs of borrowing include facility fees, amortization of deferred financing costs and discounts on notes sold. Deferred financing costs and discounts on notes sold related to the securitization trust debt are amortized using a level yield method. Accordingly, the effective cost of the securitization trust debt is greater than the contractual rate of interest disclosed above. Our wholly-owned bankruptcy remote subsidiaries were formed to facilitate the above asset-backed financing transactions. Similar bankruptcy remote subsidiaries issue the debt outstanding under our credit facilities. Bankruptcy remote refers to a legal structure in which it is expected that the applicable entity would not be included in any bankruptcy filing by its parent or affiliates. All of the assets of these subsidiaries have been pledged as collateral for the related debt. All such transactions, treated as secured financings for accounting and tax purposes, are treated as sales for all other purposes, including legal and bankruptcy purposes. None of the assets of these subsidiaries are available to pay other creditors.

5. Debt

5. Debt	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Debt	The terms and amounts of our other debt outstanding at June 30, 2015 and December 31, 2014 are summarized below: Amount Outstanding at June 30, December 31, 2015 2014 (In thousands) Description Interest Rate Maturity Warehouse lines of credit 5.50% over one month Libor (Minimum 6.50%) April 2019 $ 29,477 $ 23,581 5.50% over one month Libor (Minimum 6.25%) August 2017 32,294 33,258 Residual interest financing 11.75% over one month Libor April 2018 11,274 12,327 Debt secured by receivables measured at fair value n/a Repayment is based on payments from underlying receivables. Final payment of the 8.00% loan was made in September 2013, while final residual payment was made in January 2015 – 1,250 Subordinated renewable notes Weighted average rate of 9.80% and 10.7% at June 30, 2015 and December 31, 2014 , respectively Weighted average maturity of January 2017 and October 2016 at June 30, 2015 and December 31, 2014, respectively 14,982 15,233 $ 88,027 $ 85,649 In April 2015 we entered into a new $100 million warehouse credit line with affiliates of Fortress Investment Group. The facility is structured to allow us to fund a portion of the purchase price of automobile contracts by borrowing from a credit facility to our consolidated subsidiary Page Six Funding LLC. The facility, which replaces a revolving credit facility that we have used since December 2010, provides for advances up to 88% of eligible finance receivables and the loans under it accrue interest at a rate of one-month LIBOR plus 5.50% per annum, with a minimum rate of 6.50% per annum. There was $29.5 million outstanding under this new facility at June 30, 2015 which has a revolving period through April 2017 and an amortization period through April 2019 for any receivables pledged to the facility at the end of the revolving period.

6. Interest Income and Interest

6. Interest Income and Interest Expense	6 Months Ended
	Jun. 30, 2015
Interest Income And Interest Expense
Interest Income and Interest Expense	The following table presents the components of interest income: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Interest on finance receivables $ 84,872 $ 68,098 $ 167,193 $ 132,980 Residual interest income 28 123 65 236 Other interest income – – 1 1 Interest income $ 84,900 $ 68,221 $ 167,259 $ 133,217 The following table presents the components of interest expense: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Securitization trust debt $ 11,670 $ 9,381 $ 22,546 $ 18,697 Warehouse lines of credit 1,259 1,238 2,732 2,115 Senior secured debt, related party – – – 1,651 Debt secured by receivables at fair value – 205 – 533 Residual interest financing 351 504 773 1,083 Subordinated renewable notes 408 614 810 1,244 Interest expense $ 13,688 $ 11,942 $ 26,861 $ 25,323

7. Earnings Per Share

7. Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Earnings per share:
Earnings Per Share	Earnings per share for the three-month and six-month periods ended June 30, 2015 and 2014 were calculated using the weighted average number of shares outstanding for the related period. The following table reconciles the number of shares used in the computations of basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Weighted average number of common shares outstanding during the period used to compute basic earnings per share 26,234 25,029 25,936 24,694 Incremental common shares attributable to exercise of outstanding options and warrants 5,683 6,973 6,019 7,315 Weighted average number of common shares used to compute diluted earnings per share 31,917 32,002 31,955 32,009 If the anti-dilutive effects of common stock equivalents were considered, shares included in the diluted earnings per share calculation for the three-month and six-month periods ended June 30, 2015 would have included an additional 5.7 million and 5.3 million shares, respectively attributable to the exercise of outstanding options and warrants. For the three-month and six-month periods ended June 30, 2014, an additional 2.6 million shares would be included in the diluted earnings per share calculation.

8. Income Taxes

8. Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	We file numerous consolidated and separate income tax returns with the United States and with many states. With few exceptions, we are no longer subject to U.S. federal, state, or local examinations by tax authorities for years before 2011. As of June 30, 2015 and December 31, 2014, we had no unrecognized tax benefits for uncertain tax positions. We do not anticipate that total unrecognized tax benefits will significantly change due to any settlements of audits or expirations of statutes of limitations over the next 12 months. The Company and its subsidiaries file a consolidated federal income tax return and combined or stand-alone state franchise tax returns for certain states. We utilize the asset and liability method of accounting for income taxes, under which deferred income taxes are recognized for the future tax consequences attributable to the differences between the financial statement values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are recognized subject to management’s judgment that realization is more likely than not. A valuation allowance is recognized for a deferred tax asset if, based on the weight of the available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. In making such judgments, significant weight is given to evidence that can be objectively verified. Although realization is not assured, we believe that the realization of the recognized net deferred tax asset of $42.2 million as of June 30, 2015 is more likely than not based on forecasted future net earnings. Our net deferred tax asset of $42.2 million consists of approximately $32.0 million of net U.S. federal deferred tax assets and $10.2 million of net state deferred tax assets. We estimate that we would need to generate approximately $97 million of taxable income during the applicable carryforward periods to realize fully our federal and state net deferred tax assets. Income tax expense was $6.7 million and $13.1 million for the three months and six months ended June 30, 2015 and represents an effective income tax rate of 44%, compared to income tax expense of $5.3 million and $10.4 million for the three and six months ended June 30, 2014, and represents an effective income tax rate of and 43%.

9. Legal Proceedings

9. Legal Proceedings	6 Months Ended
	Jun. 30, 2015
Legal Proceedings
Legal Proceedings	Consumer Litigation. The first of those two has been settled by agreement with the plaintiffs, with the settlement remaining subject to approval by the court. In the second, the California court of appeals ruled in March 2015 that the plaintiff may assert his claim only in arbitration, on an individual basis and not on a class basis. However, the California supreme court has accepted the plaintiff’s petition for review (which vacates the decision of the court of appeals), and has ordered the matter held pending that court’s decision in a case to which we are not a party, which decision is expected to address some of the same issues relating to arbitrability that are raised in our case. There can be no assurance as to the outcome. For the most part, we have legal and factual defenses to consumer claims, which we routinely contest or settle (for immaterial amounts) depending on the particular circumstances of each case. We have recorded a liability as of June 30, 2015 with respect to such matters, in the aggregate. FTC Action Department of Justice Subpoena. In General Accordingly, we believe that the ultimate resolution of such legal proceedings and contingencies, after taking into account our current litigation reserves, should not have a material adverse effect on our consolidated financial condition. We note, however, that in light of the uncertainties inherent in contested proceedings, the wide discretion vested in the U.S. Department of Justice and other government agencies, and the deference that courts may give to assertions made by government litigants, there can be no assurance that the ultimate resolution of these matters will not significantly exceed the reserves we have accrued; as a result, the outcome of a particular matter may be material to our operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of our income for that period.

10. Employee Benefits

10. Employee Benefits	6 Months Ended
	Jun. 30, 2015
Employee Benefits
Employee Benefits	On March 8, 2002 we acquired MFN Financial Corporation and its subsidiaries in a merger. We sponsor the MFN Financial Corporation Benefit Plan (the “Plan”). Plan benefits were frozen June 30, 2001. The table below sets forth the Plan’s net periodic benefit cost for the three-month and six-month periods ended June 30, 2015 and 2014. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Components of net periodic cost (benefit) Service cost $ – $ – $ – $ – Interest cost 211 220 422 440 Expected return on assets (377 ) (432 ) (754 ) (864 Amortization of transition (asset)/obligation – – – – Amortization of net (gain) / loss 87 – 174 – Net periodic cost (benefit) $ (79 ) $ (212 ) $ (158 ) $ (424 We did not make any contributions to the Plan during the six-month period ended June 30, 2015 and we do not anticipate making any contributions for the remainder of 2015. We contributed $112,000 during the six-month period ended June 30, 2014.

11. Fair Value Measurements

11. Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	ASC 820, "Fair Value Measurements" clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy. ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The three levels are defined as follows: level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. In September 2011, we acquired $217.8 million of finance receivables from Fireside Bank for a purchase price of $199.6 million. The receivables were acquired by our wholly-owned special purpose subsidiary, CPS Fender Receivables, LLC, which issued a note for $197.3 million, with a fair value of $196.5 million. Since the Fireside receivables were originated by another entity with its own underwriting guidelines and procedures, we have elected to account for the Fireside receivables and the related debt secured by those receivables at their estimated fair values so that changes in fair value will be reflected in our results of operations as they occur. Interest income from the receivables and interest expense on the note are included in interest income and interest expense, respectively. Changes to the fair value of the receivables and debt are included in other income. Our level 3, unobservable inputs reflect our own assumptions about the factors that market participants use in pricing similar receivables and debt, and are based on the best information available in the circumstances. They include such inputs as estimated net charge-offs and timing of the amortization of the portfolio of finance receivables. Our estimate of the fair value of the Fireside receivables is performed on a pool basis, rather than separately on each individual receivable. The table below presents a reconciliation of the acquired finance receivables and related debt measured at fair value on a recurring basis using significant unobservable inputs: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Finance Receivables Measured at Fair Value: Balance at beginning of period $ 743 $ 9,058 $ 1,664 $ 14,476 Payments on finance receivables at fair value (427 ) (3,766 ) (1,348 ) (7,873 ) Charge-offs on finance receivables at fair value – (213 ) – (556 ) Discount accretion – 592 – (353 ) Mark to fair value – 15 – (8 ) Balance at end of period $ 316 $ 5,686 $ 316 $ 5,686 Debt Secured by Finance Receivables Measured at Fair Value: Balance at beginning of period $ – $ 8,576 $ 1,250 $ 13,117 Principal payments on debt at fair value – (3,515 ) (1,250 ) (8,554 ) Premium accretion – 186 – 490 Mark to fair value – 145 – 339 Balance at end of period – 5,392 – 5,392 Reduction for payments collected and payable – (878 ) – (878 ) Adjusted balance at end of period $ – $ 4,514 $ – $ 4,514 The table below compares the fair values of the Fireside receivables and the related secured debt to their contractual balances for the periods shown: June 30, 2015 December 31, 2014 Contractual Fair Contractual Fair Balance Value Balance Value (In thousands) Fireside receivables portfolio $ 316 $ 316 $ 1,664 $ 1,664 Debt secured by Fireside receivables portfolio – – – 1,250 The fair value of the debt secured by the Fireside receivables portfolio represents the discounted value of future cash flows that we estimate will become due to the lender in accordance with the terms of our financing for the Fireside portfolio. The terms of the debt provide for the lenders to receive a share of residual cash flows from the underlying receivables after the contractual balance of the debt is repaid and the Company’s investment in the Fireside portfolio is returned. The final residual payment was made in January 2015. Repossessed vehicle inventory, which is included in Other assets on our unaudited condensed consolidated balance sheet, is measured at fair value using level 2 assumptions based on our actual loss experience on sale of repossessed vehicles. At June 30, 2015, the finance receivables related to the repossessed vehicles in inventory totaled $24.9 million. We have applied a valuation adjustment, or loss allowance, of $15.9 million, which is based on a recovery rate of approximately 36%, resulting in an estimated fair value and carrying amount of $9.0 million. The fair value and carrying amount of the repossessed inventory at December 31, 2014 was $10.4 million after applying a valuation adjustment of $17.8 million. There were no transfers in or out of level 1 or level 2 assets and liabilities for the six months ended June 30, 2015 and 2014. We have no level 3 assets that are measured at fair value on a non-recurring basis. The following table provides certain qualitative information about our level 3 fair value measurements for assets and liabilities carried at fair value: Financial Instrument Fair Values as of Inputs as of June 30, December 31, Valuation Unobservable June 30, December 31, 2015 2014 Techniques Inputs 2015 2014 (In thousands) Assets: Finance receivables measured at fair value $ 316 $ 1,664 Discounted cash flows Discount rate 15.4% 15.4% Cumulative net losses 5.0% 5.0% Monthly average prepayments 0.5% 0.5% Liabilities: Debt secured by receivables measured at fair value – 1,250 Discounted cash flows Discount rate n/a 12.2% The estimated fair values of financial assets and liabilities at June 30, 2015 and December 31, 2014, were as follows: As of June 30, 2015 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 18,436 $ 18,436 $ – $ – $ 18,436 Restricted cash and equivalents 200,122 200,122 – – 200,122 Finance receivables, net 1,710,257 – – 1,687,552 1,687,552 Finance receivables measured at fair value 316 – – 316 316 Residual interest in securitizations 20 – – 20 20 Accrued interest receivable 28,079 – – 28,079 28,079 Liabilities: Warehouse lines of credit $ 61,771 $ – $ – $ 61,771 $ 61,771 Accrued interest payable 3,055 – – 3,055 3,055 Residual interest financing 11,274 – – 11,274 11,274 Securitization trust debt 1,775,574 – – 1,788,334 1,788,334 Subordinated renewable notes 14,982 – – 14,982 14,982 As of December 31, 2014 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 17,859 $ 17,859 $ – $ – $ 17,859 Restricted cash and equivalents 175,382 175,382 – – 175,382 Finance receivables, net 1,534,496 – – 1,512,567 1,512,567 Finance receivables measured at fair value 1,664 – – 1,664 1,664 Residual interest in securitizations 68 – – 68 68 Accrued interest receivable 23,372 – – 23,372 23,372 Liabilities: Warehouse lines of credit $ 56,839 $ – $ – $ 56,839 $ 56,839 Accrued interest payable 2,613 – – 2,613 2,613 Residual interest financing 12,327 – – 12,327 12,327 Debt secured by receivables measured at fair value 1,250 – – 1,250 1,250 Securitization trust debt 1,598,496 – – 1,619,742 1,619,742 Subordinated renewable notes 15,233 – – 15,233 15,233 The following summary presents a description of the methodologies and assumptions used to estimate the fair value of our financial instruments. Much of the information used to determine fair value is highly subjective. When applicable, readily available market information has been utilized. However, for a significant portion of our financial instruments, active markets do not exist. Therefore, significant elements of judgment were required in estimating fair value for certain items. The subjective factors include, among other things, the estimated timing and amount of cash flows, risk characteristics, credit quality and interest rates, all of which are subject to change. Since the fair value is estimated as of June 30, 2015 and December 31, 2014, the amounts that will actually be realized or paid at settlement or maturity of the instruments could be significantly different. Cash, Cash Equivalents and Restricted Cash and Equivalents The carrying value equals fair value. Finance Receivables, net The fair value of finance receivables is estimated by discounting future cash flows expected to be collected using current rates at which similar receivables could be originated. Finance Receivables Measured at Fair Value and Debt Secured by Receivables Measured at Fair Value The carrying value equals fair value. Residual Interest in Securitizations The fair value is estimated by discounting future cash flows using credit and discount rates that we believe reflect the estimated credit, interest rate and prepayment risks associated with similar types of instruments. Accrued Interest Receivable and Payable The carrying value approximates fair value. Warehouse Lines of Credit, Residual Interest Financing, and Subordinated Renewable Notes The carrying value approximates fair value because the related interest rates are estimated to reflect current market conditions for similar types of secured instruments. Securitization Trust Debt The fair value is estimated by discounting future cash flows using interest rates that we believe reflect the current market rates.

1. Summary of Significant Acc18

1. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Description of Business	We were formed in California on March 8, 1991. We specialize in purchasing and servicing retail automobile installment sale contracts (“automobile contracts” or “finance receivables”) originated by licensed motor vehicle dealers located throughout the United States (“dealers”) in the sale of new and used automobiles, light trucks and passenger vans. Through our purchases, we provide indirect financing to dealer customers for borrowers with limited credit histories or past credit problems (“sub-prime customers”). We serve as an alternative source of financing for dealers, allowing sales to customers who otherwise might not be able to obtain financing. In addition to purchasing installment purchase contracts directly from dealers, we have also (i) acquired installment purchase contracts in four merger and acquisition transactions, (ii) purchased immaterial amounts of vehicle purchase money loans from non-affiliated lenders, and (iii) lent money directly to consumers for an immaterial amount of loans secured by vehicles. In this report, we refer to all of such contracts and loans as "automobile contracts."
Basis of Presentation	Our Unaudited Condensed Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America, with the instructions to Form 10-Q and with Article 10 of Regulation S-X of the Securities and Exchange Commission, and include all adjustments that are, in management’s opinion, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are, in the opinion of management, of a normal recurring nature. Results for the three and six month periods ended June 30, 2015 are not necessarily indicative of the operating results to be expected for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted from these Unaudited Condensed Consolidated Financial Statements. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2014.
Use of Estimates	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods.
Other Income	The following table presents the primary components of Other Income for the three-month and six-month periods ending June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Direct mail revenues $ 2,382 $ 2,171 $ 4,519 $ 4,023 Convenience fee revenue 530 800 1,480 1,610 Recoveries on previously charged-off contracts 141 48 333 83 Sales tax refunds 144 129 150 231 Other 202 (142 ) 399 (304 ) Other income for the period $ 3,399 $ 3,006 $ 6,881 $ 5,643
Stock-based Compensation	We recognize compensation costs in the financial statements for all share-based payments based on the grant date fair value estimated in accordance with the provisions of ASC 718 “Stock Compensation”. For the three and six months ended June 30, 2015, we recorded stock-based compensation costs in the amount of $1.1 million and $2.2 million, respectively. These stock-based compensation costs were $0.7 million and $1.5 million for the three and six months ended June 30, 2014. As of June 30, 2015, unrecognized stock-based compensation costs to be recognized over future periods equaled $16.7 million. This amount will be recognized as expense over a weighted-average period of 3.02 years. The following represents stock option activity for the six months ended June 30, 2015: Number of Weighted Weighted Average Shares Average Remaining (in thousands) Exercise Price Contractual Term Options outstanding at the beginning of period 10,828 $ 4.05 6.01 years Granted 1,965 6.11 N/A Exercised (971) 1.38 N/A Forfeited (271) 5.12 N/A Options outstanding at the end of period 11,551 $ 4.60 5.93 years Options exercisable at the end of period 5,763 $ 3.15 5.05 years At June 30, 2015, the aggregate intrinsic value of options outstanding and exercisable was $22.9 million and $19.5 million, respectively. There were 971,000 options exercised for the six months ended June 30, 2015 compared to 978,000 for the comparable period in 2014. The total intrinsic value of options exercised was $5.4 million and $6.7 million for the six-month periods ended June 30, 2015 and 2014. There were 5.4 million shares available for future stock option grants under existing plans as of June 30, 2015.
Purchases of Company Stock	During the six-month period ended June 30, 2015, we purchased 361,046 shares of our common stock, at an average price of $6.39. We purchased 285,473 shares of our stock in the open market at an average price of $6.21. The remaining purchases of 75,573 shares were related to net exercises of outstanding options and warrants. In transactions during the six-month period ended June 30, 2015, the holders of options and warrants to purchase 392,200 shares of our common stock paid the aggregate $535,000 exercise price by surrender to us of 75,573 of such 392,200 shares. During the six-month period ended June 30, 2014, we purchased 73,788 shares of our common stock, at an average price of $7.91. The purchases were related to net exercises of outstanding options and warrants. In transactions during the six-month period ended June 30, 2014, the holder of options and warrants to purchase 395,000 shares of our common stock paid the aggregate $583,000 exercise price by surrender to us of 73,788 of such 395,000 shares.
Reclassifications	Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or total shareholders’ equity.
Financial Covenants	Certain of our securitization transactions, our warehouse credit facilities and our residual interest financing contain various financial covenants requiring minimum financial ratios and results. Such covenants include maintaining minimum levels of liquidity and net worth and not exceeding maximum leverage levels. As of June 30, 2015, we were in compliance with all such covenants. In addition, certain securitization and non-securitization related debt agreements contain cross-default provisions that would allow certain creditors to declare a default if a default occurred under a different facility.
Provision for Contingent Liabilities	We are routinely involved in various legal proceedings resulting from our consumer finance activities and practices, both continuing and discontinued. Our legal counsel has advised us on such matters where, based on information available at the time of this report, there is an indication that it is both probable that a liability has been incurred and the amount of the loss can be reasonably determined. We have recorded a liability as of June 30, 2015, which represents our best estimate of probable incurred losses for legal contingencies. The amount of losses that may ultimately be incurred cannot be estimated with certainty.

1. Summary of Significant Acc19

1. Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Other Income	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Direct mail revenues $ 2,382 $ 2,171 $ 4,519 $ 4,023 Convenience fee revenue 530 800 1,480 1,610 Recoveries on previously charged-off contracts 141 48 333 83 Sales tax refunds 144 129 150 231 Other 202 (142 ) 399 (304 ) Other income for the period $ 3,399 $ 3,006 $ 6,881 $ 5,643
Stock option activity	Number of Weighted Weighted Average Shares Average Remaining (in thousands) Exercise Price Contractual Term Options outstanding at the beginning of period 10,828 $ 4.05 6.01 years Granted 1,965 6.11 N/A Exercised (971) 1.38 N/A Forfeited (271) 5.12 N/A Options outstanding at the end of period 11,551 $ 4.60 5.93 years Options exercisable at the end of period 5,763 $ 3.15 5.05 years

2. Finance Receivables (Tables)

2. Finance Receivables (Tables)	6 Months Ended
	Jun. 30, 2015
Finance Receivables
Financial Receivables	June 30, December 31, 2015 2014 Finance Receivables (In thousands) Automobile finance receivables, net of unearned interest $ 1,796,077 $ 1,612,246 Less: Unearned acquisition fees and originations costs (11,279 ) (16,290 ) Finance Receivables $ 1,784,798 $ 1,595,956
Delinquency status of finance receivables	June 30, December 31, 2015 2014 (In thousands) Delinquency Status Current $ 1,684,617 $ 1,523,020 31 - 60 days 52,704 42,730 61 - 90 days 27,064 23,300 91 + days 31,692 23,196 $ 1,796,077 $ 1,612,246
Allowance for credit losses	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Balance at beginning of period $ 68,142 $ 44,652 $ 61,460 $ 39,626 Provision for credit losses on finance receivables 35,683 25,627 69,122 49,508 Charge-offs (34,836 ) (26,985 ) (66,665 ) (50,526 ) Recoveries 5,552 10,032 10,624 14,718 Balance at end of period $ 74,541 $ 53,326 $ 74,541 $ 53,326
Allowance for losses on repossessed inventory	June 30, December 31, 2015 2014 (In thousands) Gross balance of repossessions in inventory $ 24,878 $ 28,234 Allowance for losses on repossessed inventory (15,864 ) (17,829 ) Net repossessed inventory included in other assets $ 9,014 $ 10,405

3. Finance Receivables Measur21

3. Finance Receivables Measured at Fair Value (Tables)	6 Months Ended
	Jun. 30, 2015
Finance Receivables Measured At Fair Value
Finance Receivables measured at fair value	June 30, December 31, 2015 2014 Finance Receivables Measured at Fair Value (In thousands) Finance receivables and accrued interest, net of unearned interest $ 316 $ 1,664 Less: Fair value adjustment – – Finance receivables measured at fair value $ 316 $ 1,664
Delinquency status of finance receivables measured at fair value	June 30, December 31, 2015 2014 (In thousands) Delinquency Status Current $ 202 $ 1,266 31 - 60 days 58 262 61 - 90 days 30 74 91 + days 26 62 $ 316 $ 1,664

4. Securitization Trust Debt (T

4. Securitization Trust Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Securitization Trust Debt
Securitization trust debt	Final Scheduled Receivables Pledged at Outstanding Principal at Outstanding Principal at Weighted Average Contractual Interest Rate at Payment June 30, Initial June 30, December 31, June 30, Series Date (1) 2015 (2) Principal 2015 2014 2015 (Dollars in thousands) CPS 2011-A April 2018 $ – $ 100,364 $ – $ 8,457 – CPS 2011-B September 2018 16,276 109,936 15,805 22,985 4.45% CPS 2011-C March 2019 21,828 119,400 21,794 30,601 4.90% CPS 2012-A June 2019 26,812 155,000 25,311 35,923 3.26% CPS 2012-B September 2019 38,128 141,500 37,281 50,125 3.07% CPS 2012-C December 2019 43,231 147,000 42,302 55,619 2.39% CPS 2012-D March 2020 52,348 160,000 51,078 67,833 2.02% CPS 2013-A June 2020 76,253 185,000 75,479 97,775 1.93% CPS 2013-B September 2020 93,333 205,000 92,611 118,692 2.42% CPS 2013-C December 2020 107,454 205,000 106,571 133,628 3.03% CPS 2013-D March 2021 106,445 183,000 105,390 132,150 2.67% CPS 2014-A June 2021 117,005 180,000 116,084 143,456 2.24% CPS 2014-B September 2021 150,384 202,500 149,774 177,601 2.01% CPS 2014-C December 2021 224,185 273,000 222,119 256,151 2.22% CPS 2014-D March 2022 237,229 267,500 233,956 267,500 2.46% CPS 2015-A June 2022 232,950 245,000 230,019 – 2.36% CPS 2015-B (3) September 2022 248,347 250,000 250,000 – 2.47% $ 1,792,208 $ 3,129,200 $ 1,775,574 $ 1,598,496

5. Debt (Tables)

5. Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Debt Outstanding	Amount Outstanding at June 30, December 31, 2015 2014 (In thousands) Description Interest Rate Maturity Warehouse lines of credit 5.50% over one month Libor (Minimum 6.50%) April 2019 $ 29,477 $ 23,581 5.50% over one month Libor (Minimum 6.25%) August 2017 32,294 33,258 Residual interest financing 11.75% over one month Libor April 2018 11,274 12,327 Debt secured by receivables measured at fair value n/a Repayment is based on payments from underlying receivables. Final payment of the 8.00% loan was made in September 2013, while final residual payment was made in January 2015 – 1,250 Subordinated renewable notes Weighted average rate of 9.80% and 10.7% at June 30, 2015 and December 31, 2014 , respectively Weighted average maturity of January 2017 and October 2016 at June 30, 2015 and December 31, 2014, respectively 14,982 15,233 $ 88,027 $ 85,649

6. Interest Income and Intere24

6. Interest Income and Interest Expense (Tables)	6 Months Ended
	Jun. 30, 2015
Interest Income And Interest Expense Tables
Interest income	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Interest on finance receivables $ 84,872 $ 68,098 $ 167,193 $ 132,980 Residual interest income 28 123 65 236 Other interest income – – 1 1 Interest income $ 84,900 $ 68,221 $ 167,259 $ 133,217
Interest expense	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Securitization trust debt $ 11,670 $ 9,381 $ 22,546 $ 18,697 Warehouse lines of credit 1,259 1,238 2,732 2,115 Senior secured debt, related party – – – 1,651 Debt secured by receivables at fair value – 205 – 533 Residual interest financing 351 504 773 1,083 Subordinated renewable notes 408 614 810 1,244 Interest expense $ 13,688 $ 11,942 $ 26,861 $ 25,323

7. Earnings Per Share (Tables)

7. Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings per share:
Computation of basic and diluted earnings per share	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Weighted average number of common shares outstanding during the period used to compute basic earnings per share 26,234 25,029 25,936 24,694 Incremental common shares attributable to exercise of outstanding options and warrants 5,683 6,973 6,019 7,315 Weighted average number of common shares used to compute diluted earnings per share 31,917 32,002 31,955 32,009

10. Employee Benefits (Tables)

10. Employee Benefits (Tables)	6 Months Ended
	Jun. 30, 2015
Employee Benefits
Net periodic cost (benefit)	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) (In thousands) Components of net periodic cost (benefit) Service cost $ – $ – $ – $ – Interest cost 211 220 422 440 Expected return on assets (377 ) (432 ) (754 ) (864 Amortization of transition (asset)/obligation – – – – Amortization of net (gain) / loss 87 – 174 – Net periodic cost (benefit) $ (79 ) $ (212 ) $ (158 ) $ (424

11. Fair Value Measurements (Ta

11. Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Reconciliation of the acquired finance receivables and related debt measured at fair value on a recurring basis	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Finance Receivables Measured at Fair Value: Balance at beginning of period $ 743 $ 9,058 $ 1,664 $ 14,476 Payments on finance receivables at fair value (427 ) (3,766 ) (1,348 ) (7,873 ) Charge-offs on finance receivables at fair value – (213 ) – (556 ) Discount accretion – 592 – (353 ) Mark to fair value – 15 – (8 ) Balance at end of period $ 316 $ 5,686 $ 316 $ 5,686 Debt Secured by Finance Receivables Measured at Fair Value: Balance at beginning of period $ – $ 8,576 $ 1,250 $ 13,117 Principal payments on debt at fair value – (3,515 ) (1,250 ) (8,554 ) Premium accretion – 186 – 490 Mark to fair value – 145 – 339 Balance at end of period – 5,392 – 5,392 Reduction for payments collected and payable – (878 ) – (878 ) Adjusted balance at end of period $ – $ 4,514 $ – $ 4,514
Comparision of fair values of the Fireside receivables and the related secured debt	June 30, 2015 December 31, 2014 Contractual Fair Contractual Fair Balance Value Balance Value (In thousands) Fireside receivables portfolio $ 316 $ 316 $ 1,664 $ 1,664 Debt secured by Fireside receivables portfolio – – – 1,250
Qualitative information about level 3 fair value measurements	Financial Instrument Fair Values as of Inputs as of June 30, December 31, Valuation Unobservable June 30, December 31, 2015 2014 Techniques Inputs 2015 2014 (In thousands) Assets: Finance receivables measured at fair value $ 316 $ 1,664 Discounted cash flows Discount rate 15.4% 15.4% Cumulative net losses 5.0% 5.0% Monthly average prepayments 0.5% 0.5% Liabilities: Debt secured by receivables measured at fair value – 1,250 Discounted cash flows Discount rate n/a 12.2%
Estimated fair values of financial assets and liabilities	As of June 30, 2015 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 18,436 $ 18,436 $ – $ – $ 18,436 Restricted cash and equivalents 200,122 200,122 – – 200,122 Finance receivables, net 1,710,257 – – 1,687,552 1,687,552 Finance receivables measured at fair value 316 – – 316 316 Residual interest in securitizations 20 – – 20 20 Accrued interest receivable 28,079 – – 28,079 28,079 Liabilities: Warehouse lines of credit $ 61,771 $ – $ – $ 61,771 $ 61,771 Accrued interest payable 3,055 – – 3,055 3,055 Residual interest financing 11,274 – – 11,274 11,274 Securitization trust debt 1,775,574 – – 1,788,334 1,788,334 Subordinated renewable notes 14,982 – – 14,982 14,982 As of December 31, 2014 Financial Instrument (In thousands) Carrying Fair Value Measurements Using: Value Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 17,859 $ 17,859 $ – $ – $ 17,859 Restricted cash and equivalents 175,382 175,382 – – 175,382 Finance receivables, net 1,534,496 – – 1,512,567 1,512,567 Finance receivables measured at fair value 1,664 – – 1,664 1,664 Residual interest in securitizations 68 – – 68 68 Accrued interest receivable 23,372 – – 23,372 23,372 Liabilities: Warehouse lines of credit $ 56,839 $ – $ – $ 56,839 $ 56,839 Accrued interest payable 2,613 – – 2,613 2,613 Residual interest financing 12,327 – – 12,327 12,327 Debt secured by receivables measured at fair value 1,250 – – 1,250 1,250 Securitization trust debt 1,598,496 – – 1,619,742 1,619,742 Subordinated renewable notes 15,233 – – 15,233 15,233

1. Summary of Significant Acc28

1. Summary of Significant Accounting Policies - Schedule of Other Income (Details-Other Income) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Primary components of Other Income
Other income for the period	$ 3,399	$ 3,006	$ 6,881	$ 5,643
Direct Mail Revenues
Primary components of Other Income
Other income for the period	2,382	2,171	4,519	4,023
Convenience Fee Revenue
Primary components of Other Income
Other income for the period	530	800	1,480	1,610
Recoveries on previously charged-off contracts
Primary components of Other Income
Other income for the period	141	48	333	83
Sales Tax Refunds
Primary components of Other Income
Other income for the period	144	129	150	231
Other Income
Primary components of Other Income
Other income for the period	$ 202	$ (142)	$ 399	$ (304)

1. Summary of Significant Acc29

1. Summary of Significant Accounting Policies (Details-Options outstanding) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Number of Shares
Outstanding options, beginning balance	10,828
Granted	1,965
Exercised	(971)	(978)
Forfeited	(271)
Outstanding options, ending balance	11,551
Options exercisable	5,763
Weighted Average Exercise Price
Outstanding options, beginning balance	$ 4.05
Granted	6.11
Exercised	1.38
Forfeited	5.12
Outstanding options, ending balance	4.60
Options exercisable	$ 3.15
Weighted Average Remaining Contractual Term
Outstanding options, ending balance	5 years 11 months 5 days
Options exercisable	5 years 18 days

1. Summary of Significant Acc30

1. Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Stock based compensation costs	$ 1,100	$ 700	$ 2,176	$ 1,459
Unrecognized stock-based compensation costs	16,700		$ 16,700
Unrecognized stock-based compensation costs amortization period			3 years 7 days
Aggregate intrinsic value outstanding	22,900		$ 22,900
Aggregate intrinsic value exercisable	$ 19,500		$ 19,500
Options Exercised			971	978
Total intrinsic value of options exercised			$ 5,400	$ 6,700
Shares available for future grants	5,400		5,400
Repurchase of common stock, shares repurchased			361,046
Repurchase of common stock average share price			$ 6.39

2. Finance Receivables (Details

2. Finance Receivables (Details-Finance receivables) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finance Receivables
Automobile finance receivables, net of unearned interest	$ 1,796,077	$ 1,612,246
Less: Unearned acquisition fees and originations costs	(11,279)	(16,290)
Finance Receivables	$ 1,784,798	$ 1,595,956

2. Finance Receivables (Detai32

2. Finance Receivables (Details-Delinquency status) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finance Receivables
Current	$ 1,684,617	$ 1,523,020
31 - 60 days	52,704	42,730
61 - 90 days	27,064	23,300
91 + days	31,692	23,196
Finance receivables	$ 1,796,077	$ 1,612,246

2. Finance Receivables (Detai33

2. Finance Receivables (Details-Allowance for finance credit losses) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Finance Receivables
Balance at beginning of period	$ 68,142	$ 44,652	$ 61,460	$ 39,626
Provision for credit losses on finance receivables	35,683	25,627	69,122	49,508
Charge-offs	(34,836)	(26,985)	(66,665)	(50,526)
Recoveries	5,552	10,032	10,624	14,718
Balance at end of period	$ 74,541	$ 53,326	$ 74,541	$ 53,326

2. Finance Receivables (Detai34

2. Finance Receivables (Details-Repossessions) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finance Receivables
Gross balance of repossessions in inventory	$ 24,878	$ 28,234
Allowance for losses on repossessed inventory	(15,864)	(17,829)
Net repossessed inventory included in other assets	$ 9,014	$ 10,405

2. Finance Receivables (Detai35

2. Finance Receivables (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finance Receivables
Finance receivables	$ 31,700	$ 23,200

3. Finance Receivables Measur36

3. Finance Receivables Measured at Fair Value (Details-Finance receivables) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finance Receivables Measured at Fair Value
Finance receivables and accrued interest, net of unearned interest	$ 316	$ 1,664
Less: Fair value adjustment	0	0
Finance receivables measured at fair value	$ 316	$ 1,664

3. Finance Receivables Measur37

3. Finance Receivables Measured at Fair Value (Details-Delinquency status) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Total finance receivables measured at fair value	$ 316	$ 1,664
Current
Total finance receivables measured at fair value	202	1,266
31-60 days
Total finance receivables measured at fair value	58	262
61-90 days
Total finance receivables measured at fair value	30	74
91+ days
Total finance receivables measured at fair value	$ 26	$ 62

4. Securitization Trust Debt (D

4. Securitization Trust Debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
"Securitization trust debt," and components of debt
Receivables Pledged at end of period	$ 1,792,208
Initial Principal	3,129,200
Outstanding Principal	$ 1,775,574	$ 1,598,496
CPS 2012-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,019
Receivables Pledged at end of period	$ 38,128
Initial Principal	141,500
Outstanding Principal	$ 37,281	50,125
Weighted Average Contractual Interest Rate end of period	3.07%
CPS 2012-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2,019
Receivables Pledged at end of period	$ 43,231
Initial Principal	147,000
Outstanding Principal	$ 42,302	55,619
Weighted Average Contractual Interest Rate end of period	2.39%
CPS 2012-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2,020
Receivables Pledged at end of period	$ 52,348
Initial Principal	160,000
Outstanding Principal	$ 51,078	67,833
Weighted Average Contractual Interest Rate end of period	2.02%
CPS 2013-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2,020
Receivables Pledged at end of period	$ 76,253
Initial Principal	185,000
Outstanding Principal	$ 75,479	97,775
Weighted Average Contractual Interest Rate end of period	1.93%
CPS 2013-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,020
Receivables Pledged at end of period	$ 93,333
Initial Principal	205,000
Outstanding Principal	$ 92,611	118,692
Weighted Average Contractual Interest Rate end of period	2.42%
CPS 2013-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2,020
Receivables Pledged at end of period	$ 107,454
Initial Principal	205,000
Outstanding Principal	$ 106,571	133,628
Weighted Average Contractual Interest Rate end of period	3.03%
CPS 2013-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2,021
Receivables Pledged at end of period	$ 106,445
Initial Principal	183,000
Outstanding Principal	$ 105,390	132,150
Weighted Average Contractual Interest Rate end of period	2.67%
CPS 2014-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2,021
Receivables Pledged at end of period	$ 117,005
Initial Principal	180,000
Outstanding Principal	$ 116,084	143,456
Weighted Average Contractual Interest Rate end of period	2.24%
CPS 2015-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2,022
Receivables Pledged at end of period	$ 232,950
Initial Principal	245,000
Outstanding Principal	$ 230,019	0
Weighted Average Contractual Interest Rate end of period	2.36%
CPS 2011-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	April 2,018
Receivables Pledged at end of period	$ 0
Initial Principal	100,364
Outstanding Principal	$ 0	8,457
Weighted Average Contractual Interest Rate end of period	0.00%
CPS 2011-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,018
Receivables Pledged at end of period	$ 16,276
Initial Principal	109,936
Outstanding Principal	$ 15,805	22,985
Weighted Average Contractual Interest Rate end of period	4.45%
CPS 2011-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2,019
Receivables Pledged at end of period	$ 21,828
Initial Principal	119,400
Outstanding Principal	$ 21,794	30,601
Weighted Average Contractual Interest Rate end of period	4.90%
CPS 2012-A [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	June 2,019
Receivables Pledged at end of period	$ 26,812
Initial Principal	155,000
Outstanding Principal	$ 25,311	35,923
Weighted Average Contractual Interest Rate end of period	3.26%
CPS 2014-B [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,021
Receivables Pledged at end of period	$ 150,384
Initial Principal	202,500
Outstanding Principal	$ 149,774	177,601
Weighted Average Contractual Interest Rate end of period	2.01%
CPS 2014-C [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	December 2,021
Receivables Pledged at end of period	$ 224,185
Initial Principal	273,000
Outstanding Principal	$ 222,119	256,151
Weighted Average Contractual Interest Rate end of period	2.22%
CPS 2014-D [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	March 2,022
Receivables Pledged at end of period	$ 237,229
Initial Principal	267,500
Outstanding Principal	$ 233,956	267,500
Weighted Average Contractual Interest Rate end of period	2.46%
CPS 2015-B(3) [Member]
"Securitization trust debt," and components of debt
Final Scheduled Payment Date	September 2,022
Receivables Pledged at end of period	$ 248,347
Initial Principal	250,000
Outstanding Principal	$ 250,000	$ 0
Weighted Average Contractual Interest Rate end of period	2.47%

4. Securitization Trust Debt 39

4. Securitization Trust Debt (Details Narrative) $ in Thousands	Jun. 30, 2015USD ($)
Securitization Trust Debt
Expected debt payments 2015	$ 342,700
Expected debt payments 2016	582,200
Expected debt payments 2017	426,200
Expected debt payments 2018	256,500
Expected debt payments 2019	129,400
Expected debt payments 2020	38,600
Receivables pledged	$ 94,900

5. Debt (Details)

5. Debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	$ 88,027	$ 85,649
Warehouse lines of credit
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	$ 29,477	23,581
Interest rate	5.50% over one month Libor (Minimum 6.50%)
Maturity date	April 2,019
Warehouse lines of credit (2)
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	$ 32,294	33,258
Interest rate	5.50% over one month Libor (Minimum 6.25%)
Maturity date	August 2,017
Residual interest financing
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	$ 11,274	12,327
Interest rate	11.75% over one month Libor
Maturity date	April 2,018
Debt secured by receivables measured at fair value
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	$ 0	1,250
Maturity date	Repayment is based on payments from underlying receivables. Final payment of the 8.00% loan was made in September 2013, while final residual payment was made in January 2015
Subordinated renewable notes
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Other debt outstanding	$ 14,982	$ 15,233
Interest rate	Weighted average rate of 9.80% and 10.7% at June 30, 2015 and December 31, 2014 , respectively
Maturity date	Weighted average maturity of January 2017 and October 2016 at June 30, 2015 and December 31, 2014, respectively

5. Debt (Details Narrative)

5. Debt (Details Narrative) $ in Thousands	Jun. 30, 2015USD ($)
Debt Disclosure [Abstract]
Outstanding loans under credit facility for consolidated subsidiary Page Six Funding	$ 29,500

6. Interest Income (Details)

6. Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Components of interest income
Interest on Finance Receivables	$ 84,872	$ 68,098	$ 167,193	$ 132,980
Residual interest income	28	123	65	236
Other interest income	0	0	1	1
Interest income	$ 84,900	$ 68,221	$ 167,259	$ 133,217

6. Interest Expense (Details)

6. Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest Expense Details
Securitization trust debt	$ 11,670	$ 9,381	$ 22,546	$ 18,697
Warehouse lines of credit	1,259	1,238	2,732	2,115
Senior secured debt, related party	0	0	0	1,651
Debt secured by receivables at fair value	0	205	0	533
Residual interest financing	351	504	773	1,083
Subordinated renewable notes	408	614	810	1,244
Total interest expense	$ 13,688	$ 11,942	$ 26,861	$ 25,323

7. Earnings Per Share (Details)

7. Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings per share:
Weighted average common shares - basic	26,234	25,029	25,936	24,694
Incremental common shares attibutable to exercise of outstanding options and warrants	5,683	6,973	6,019	7,315
Weighted average common shares - diluted	31,917	32,002	31,955	32,009

7. Earnings Per Share (Details

7. Earnings Per Share (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings per share:
Antidilutive common stock equivalents	5,700,000	2,600,000	5,300,000	2,600,000

8. Income Taxes (Details Narrat

8. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Deferred tax asset	$ 42,217		$ 42,217		$ 42,847
Income tax expense	$ 6,663	$ 5,303	$ 13,079	$ 10,362
Effective income tax rate			44.00%	43.00%

10. Employee Benefits (Details)

10. Employee Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Components of net periodic cost (benefit)
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	211	220	422	440
Expected return on assets	(377)	(432)	(754)	(864)
Amortization of transition (asset)/obligation	0	0	0	0
Amortization of net (gain)/loss	87	0	174	0
Net periodic cost (benefit)	$ (79)	$ (212)	$ (158)	$ (424)

10. Employee Benefits (Details

10. Employee Benefits (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Employee Benefits
Plan contribution	$ 0	$ 112
Future plan contribution	$ 0

11. Fair Value measurements (De

11. Fair Value measurements (Details-Finance receivables) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Finance Receivables Measured at Fair Value:
Balance at beginning of period	$ 743	$ 9,058	$ 1,664	$ 14,476
Payments on finance receivables at fair value	(427)	(3,766)	(1,348)	(7,873)
Charge-offs on finance receivables at fair value	0	(213)	0	(556)
Discount accretion	0	592	0	(353)
Mark to fair value	0	15	0	(8)
Balance at end of period	316	5,686	316	5,686
Debt Secured by Finance Receivables Measured at Fair Value:
Balance at beginning of period	0	8,576	1,250	13,117
Principal payments on debt at fair value	0	(3,515)	(1,250)	(8,554)
Premium accretion	0	186	0	490
Mark to fair value	0	145	0	339
Balance at end of period	0	5,392	0	5,392
Reduction for principal payments collected and payable	0	(878)	0	(878)
Adjusted balance at end of period	$ 0	$ 4,514	$ 0	$ 4,514

11. Fair Value measurements (50

11. Fair Value measurements (Details-Fireside receivables) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Contractual Balance [Member]
Fair values of the Fireside receivables and the related secured debt to their contractual balances
Fireside receivables portfolio	$ 316	$ 1,664
Debt secured by Fireside receivables portfolio	0	0
Fair Value [Member]
Fair values of the Fireside receivables and the related secured debt to their contractual balances
Fireside receivables portfolio	316	1,664
Debt secured by Fireside receivables portfolio	$ 0	$ 1,250

11. Fair Value Measurements (51

11. Fair Value Measurements (Details-Level 3 fair value measurements) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Assets:
Finance receivables measured at fair value	$ 316	$ 1,664	$ 743	$ 5,686	$ 9,058	$ 14,476
Liabilities:
Debt secured by receivables measured at fair value	0	1,250
Finance receivables
Assets:
Finance receivables measured at fair value	$ 316	$ 1,664
Liabilities:
Valuation Techniques and Unobservable Inputs	Discounted cash flows; Discount rate 15.4%, Cumulative net losses 5.0%, Monthly average prepayments 0.5%	Discounted cash flows; Discount rate 15.4%, Cumulative net losses 5.0%, Monthly average prepayments 0.5%
Debt secured by receivables measured at fair value
Liabilities:
Debt secured by receivables measured at fair value		$ 1,250
Valuation Techniques and Unobservable Inputs		Discounted cash flows, Discount rate 12.2%
DebtSecuredReceivablesMember
Liabilities:
Debt secured by receivables measured at fair value	$ 0

11. Fair Value measurements (52

11. Fair Value measurements (Details-fair values) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Assets:
Cash and cash equivalents	$ 18,436		$ 17,859
Restricted cash and equivalents	200,122		175,382
Finance receivables, net	1,687,552		1,512,567
Finance receivables measured at fair value	316	$ 743	1,664	$ 5,686	$ 9,058	$ 14,476
Residual interest in securitizations	20		68
Accrued interest receivable	28,079		23,372
Liabilities:
Warehouse lines of credit	61,771		56,839
Accrued interest payable	3,055		2,613
Residual interest financing	11,274		12,327
Debt secured by receivables measured at fair value	0		1,250
Securitization trust debt	1,788,334		1,619,742
Subordinated renewable notes	14,982		15,233
Carrying Value [Member]
Assets:
Cash and cash equivalents	18,436		17,859
Restricted cash and equivalents	200,122		175,382
Finance receivables, net	1,710,257		1,534,496
Finance receivables measured at fair value	316		1,664
Residual interest in securitizations	20		68
Accrued interest receivable	28,079		23,372
Liabilities:
Warehouse lines of credit	61,771		56,839
Accrued interest payable	3,055		2,613
Residual interest financing	11,274		12,327
Debt secured by receivables measured at fair value	0		1,250
Securitization trust debt	1,775,574		1,598,496
Subordinated renewable notes	14,982		15,233
Fair Value Inputs Level 1 [Member]
Assets:
Cash and cash equivalents	18,436		17,859
Restricted cash and equivalents	200,122		175,382
Finance receivables, net	0		0
Finance receivables measured at fair value	0		0
Residual interest in securitizations	0		0
Accrued interest receivable	0		0
Liabilities:
Warehouse lines of credit	0		0
Accrued interest payable	0		0
Residual interest financing	0		0
Debt secured by receivables measured at fair value	0		0
Securitization trust debt	0		0
Subordinated renewable notes	0		0
Level 2 [Member]
Assets:
Cash and cash equivalents	0		0
Restricted cash and equivalents	0		0
Finance receivables, net	0		0
Finance receivables measured at fair value	0		0
Residual interest in securitizations	0		0
Accrued interest receivable	0		0
Liabilities:
Warehouse lines of credit	0		0
Accrued interest payable	0		0
Residual interest financing	0		0
Debt secured by receivables measured at fair value	0		0
Securitization trust debt	0		0
Subordinated renewable notes	0		0
Level 3 [Member]
Assets:
Cash and cash equivalents	0		0
Restricted cash and equivalents	0		0
Finance receivables, net	1,687,552		1,512,567
Finance receivables measured at fair value	316		1,664
Residual interest in securitizations	20		68
Accrued interest receivable	28,079		23,372
Liabilities:
Warehouse lines of credit	61,771		56,839
Accrued interest payable	3,055		2,613
Residual interest financing	11,274		12,327
Debt secured by receivables measured at fair value	0		1,250
Securitization trust debt	1,788,334		1,619,742
Subordinated renewable notes	$ 14,982		$ 15,233