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Table of Contents
Index to Financial Statements
In 2004, the Company received $3.4 million of servicing fees and $3.3 million of other cash flows, excluding the $295 million of net
proceeds that it received from the new securitization in 2004. The following table presents quantitative information about the loan balances,
delinquencies and other assets managed with these securitized financial assets (in thousands):
NOTE 14—RELATED PARTY TRANSACTIONS
Loans to Directors and Officers Repaid in 2002
December 31, 2004
RV
Marine
Other
Total
Principal amount of loans
$
4,057,491
$
1,120,191
$
13,385
$
5,191,067
Less:
Loans securitized
(558,496
)
(189,452
)
—
(
747,948
)
Loans sold/transferred and retained for servicing
(1,015,703
)
(254,599
)
(34
)
(1,270,336
)
Loans held
-
for
-
sale or securitization
(24,771
)
(3,675
)
(35
)
(28,481
)
Add:
Loans serviced by others
28,684
48,755
—
77,439
Loans held in portfolio
$
2,487,205
$
721,220
$
13,316
$
3,221,741
Principal amount of loans 60 days or more past due
$
6,875
$
2,911
$
34
$
9,820
Net credit losses
$
16,940
$
5,825
$
(117
)
$
22,648
In 2000, the Company adopted an executive loan program for purchases of Company stock and an executive home loan/home lease
program to assist with executive relocation to the Silicon Valley. Both programs were terminated in 2002 and all loans under these programs
were repaid in 2002 in cash or in shares of the Company’s common stock. In addition, a wholly owned subsidiary of the Company purchased
four homes that were leased to executives. During 2004, the Company sold its one remaining home, which it also leased to a former executive
during 2004, to the former executive, for its fair market value. Upon the sale, the Company recorded a $25,000 gain in facility restructuring and
other exit charges. Also in 2000, the Company extended a loan to a founder and director of the Company. The loan was repaid in full in August
2003.
Executive Agreement Performed in 2003
Effective January 23, 2003, the former CEO resigned from the Company. In 2003, the Company reversed $3.7 million of compensation
expense accrued in 2002 for the unvested portion of the former CEO’s restricted common stock, held by a subsidiary trust of the Company. In
2002, the former CEO waived amounts previously paid on his behalf and for amounts due to be paid in 2002, resulting in a benefit to the
Company of approximately $23.5 million. This benefit is reflected as executive agreement in the consolidated statement of operations.
Other
In the normal course of business, the Company extends credit to its principal officers, directors and employees to finance their purchases
of securities on margin. Margin loans to the Company’s principal officers and directors totaled approximately $6.6 million at December 31,
2004, $104.9 million at September 30, 2004, $101.5 million at June 30, 2004, $106.2 million at March 31, 2004 and $95.4 million as of
December 31, 2003. These margin loans are made on the same terms and conditions as the Company’s loans to other non-affiliated customers.
The Company has entered into management retention agreements and/or employment agreements with its key executive officers. These
agreements provide for annual base salary compensation, severance payments and
94