During the first quarter of fiscal 2021, we adopted ASU 2016-13, which replaces the incurred loss methodology for determining our provision for credit losses and allowance for credit losses with an expected loss methodology that is referred to as the CECL model, using the modified retrospective approach. Upon adoption, the total allowance for credit losses increased by $28.6 million, with no impact to the consolidated statement of operations.

Based on the Company’s loan products, the purpose and the term, current payment performance is used to assess the capability of the borrower to repay contractual obligations of the loan agreements as scheduled. Current payment performance is monitored by management on a daily basis. On an as needed basis, qualitative information may be taken into consideration if new information arises related to the customer’s ability to repay the loan. The Company’s payment performance buckets are as follows: current, 30-60 days past due, 61-90 days past due, 91 days or more past due.


	Term Loans By Origination
Loans	Up to 1 Year Ago		Between 1 and 2 Years Ago		Between 2 and 3 Years Ago		Between 3 and 4 Years Ago		Between 4 and 5 Years Ago		More than 5 Years Ago		Total
Current	$	1,096,454,268	$	53,542,759	$	2,329,906	$	128,216	$	10,211	$	3,063	$	1,152,468,423
30 - 60 days past due	42,220,508		4,099,955		272,431		58,886		8,142		168		46,660,090
61 - 90 days past due	23,939,973		2,640,530		158,794		23,586		1,198		574		26,764,655
91 or more days past due	31,674,388		6,339,220		325,237		46,724		6,639		2,041		38,394,249
Total	$	1,194,289,137	$	66,622,464	$	3,086,368	$	257,412	$	26,190	$	5,846	$	1,264,287,417

	Term Loans By Origination
Tax advance loans	Up to 1 Year Ago		Between 1 and 2 Years Ago		Between 2 and 3 Years Ago		Between 3 and 4 Years Ago		Between 4 and 5 Years Ago		More than 5 Years Ago		Total
Current	$	7,920	$	—	$	—	$	—	$	—	$	—	7,920
30 - 60 days past due	9,305		—		—		—		—		—		9,305
61 - 90 days past due	11,647		—		—		—		—		—		11,647
91 or more days past due	211,779		2,247		—		—		—		—		214,026
Total	$	240,651	$	2,247	$	—	$	—	$	—	$	—	$	242,898
Total gross loans													$	1,264,530,315


	Term Loans By Origination
Loans	Up to 1 Year Ago		Between 1 and 2 Years Ago		Between 2 and 3 Years Ago		Between 3 and 4 Years Ago		Between 4 and 5 Years Ago		More than 5 Years Ago		Total
Current	$	1,082,056,393	$	48,598,283	$	1,885,402	$	74,695	$	270	$	831	$	1,132,615,874
30 - 60 days past due	46,120,163		2,687,437		146,140		15,455		—		—		48,969,195
61 - 90 days past due	27,167,688		2,234,188		81,559		945		—		—		29,484,380
91 or more days past due	38,944,893		13,102,556		973,268		166,317		25,919		5,015		53,217,968
Total	$	1,194,289,137	$	66,622,464	$	3,086,369	$	257,412	$	26,189	$	5,846	$	1,264,287,417

	Term Loans By Origination
Tax advance loans	Up to 1 Year Ago		Between 1 and 2 Years Ago		Between 2 and 3 Years Ago		Between 3 and 4 Years Ago		Between 4 and 5 Years Ago		More than 5 Years Ago		Total
Current	$	63	$	—	$	—	$	—	$	—	$	—	$	63
30 - 60 days past due	50		—		—		—		—		—		50
61 - 90 days past due	2,744		—		—		—		—		—		2,744
91 or more days past due	237,794		2,247		—		—		—		—		240,041
Total	$	240,651	$	2,247	$	—	$	—	$	—	$	—	$	242,898
Total gross loans													$	1,264,530,315

The allowance for credit losses is applied to amortized cost, which is defined as the amount at which a financing receivable is originated, and net of deferred fees and costs, collection of cash, and charge-offs. Amortized cost also includes interest earned but not collected.

Credit Risk is inherent in the business of extending loans to borrowers and is continuously monitored by management and reflected within the allowance for credit losses for loans. The allowance for credit losses is an estimate of expected losses inherent within the Company’s gross loans receivable portfolio. In estimating the allowance for credit losses, loans with similar risk characteristics are aggregated into pools and collectively assessed. The Company’s loan products have generally the same terms therefore the Company looked to borrower characteristics as a way to disaggregate loans into pools sharing similar risks.

Management estimates an allowance for each Customer Tenure bucket by performing a historical migration analysis of loans in that bucket for the twelve most recent historical twelve-month migration periods, adjusted for seasonality. All loans that are greater than 90 days past due on a recency basis and not written off as of the reporting date are reserved for at 100% of the outstanding balance, net of a calculated Rehab Rate. Management considers whether current credit conditions might suggest a change is needed to the allowance for credit losses by monitoring trends in 60-day delinquencies, FICO scores and average loan size as compared to metrics in the historical migration period. Due to the short term nature of the loan portfolio, forecasted changes in macroeconomic variables such as unemployment do not have a significant impact on loans outstanding at the end of a particular reporting period. Therefore, management develops a reasonable and supportable forecast of losses by comparing the most recent 6-month loss curves as compared to historical loss curves to see if there are significant changes in borrower behavior that may indicate the historical migration rates should be adjusted. If an adjustment is made as a result of the forecast, then the Company has elected to immediately revert back to historical experience past the forecast period.


	Three months ended December 31,				Nine months ended December 31,
	2020		2019		2020		2019
Beginning balance	109,601,359		$	101,469,313	$	96,487,856	$	81,519,624
Impact of ASC 326 adoption	—		—		28,628,368		—
Provision for credit losses	28,857,443		55,219,470		80,608,470		149,478,577
Charge-offs	(29,239,780)		(46,850,430)		(106,865,225)		(128,978,851)
Recoveries	4,248,339		3,231,288		14,607,892		11,050,291
Net charge-offs	(24,991,441)		(43,619,142)		(92,257,333)		(117,928,560)
Ending Balance	$	113,467,361	$	113,069,641	$	113,467,361	$	113,069,641


			Days Past Due - Recency Basis
Customer Tenure	Current		30 - 60		61 - 90		Over 90		Total Past Due		Total Loans
0 to 5 months	$	91,287,471	$	6,542,056	$	4,492,845	$	6,824,023	$	17,858,924	$	109,146,395
6 to 17 months	118,906,270		7,443,204		5,183,990		8,509,517		21,136,711		140,042,981
18 to 35 months	171,201,659		7,495,044		4,324,184		6,184,645		18,003,873		189,205,532
36 to 59 months	136,570,735		5,156,489		2,804,847		3,712,847		11,674,183		148,244,918
60+ months	634,502,288		20,023,296		9,958,789		13,163,218		43,145,303		677,647,591

Tax advance loans	7,920		9,305		11,647		214,026		$	234,978	242,898
Total gross loans	1,152,476,343		46,669,394		26,776,302		38,608,276		112,053,972		1,264,530,315
Unearned interest, insurance and fees	(305,365,570)		(12,365,743)		(7,094,775)		(10,229,831)		(29,690,349)		(335,055,919)
Total net loans	$	847,110,773	$	34,303,651	$	19,681,527	$	28,378,445	$	82,363,623	$	929,474,396

Percentage of period-end gross loans receivable			3.7%		2.1%		3.1%		8.9%


			Days Past Due - Contractual Basis
Customer Tenure	Current		30 - 60		61 - 90		Over 90		Total Past Due			Total Loans
0 to 5 months	$	90,177,810	$	6,466,041	$	4,502,768	$	7,999,773	$	18,968,582		$	109,146,392
6 to 17 months	116,381,121		7,566,591		5,380,327		10,714,943		23,661,861			140,042,982
18 to 35 months	168,402,428		7,688,576		4,805,036		8,309,493		20,803,105			189,205,533
36 to 59 months	134,268,134		5,473,173		3,130,245		5,373,367		13,976,785			148,244,919
60+ months	623,386,383		21,774,814		11,666,004		20,820,390		54,261,208			677,647,591

Tax advance loans	63		50		2,744		240,041		$	242,835		242,898
Total gross loans	1,132,615,939		48,969,245		29,487,124		53,458,007		131,914,376			1,264,530,315
Unearned interest, insurance and fees	(300,103,263)		(12,975,122)		(7,813,048)		(14,164,486)		(34,952,656)			(335,055,919)
Total net loans	$	832,512,676	$	35,994,123	$	21,674,076	$	39,293,521	$	96,961,720		$	929,474,396

Percentage of period-end gross loans receivable			3.9%		2.3%		4.2%		10.4		%

The Company elected not to record an allowance for credit losses for accrued interest as outlined in ASC 326-20-30-5A. Loans are placed on nonaccrual status when management determines that the full payment of principal and collection of interest according to contractual terms is no longer likely. The accrual of interest is discontinued when a loan is 61 days or more past the contractual due date. When the interest accrual is discontinued, all unpaid accrued interest is reversed against interest income. While a loan is on nonaccrual status, interest revenue is recognized only when a payment is received. Once a loan moves to nonaccrual status, it remains in nonaccrual status until it is paid out, charged off or refinanced. During the three months ended December 31, 2020, the Company reversed a total of $6.4 million of unpaid accrued interest against interest income. During the nine months ended December 31, 2020, the Company reversed a total of $16.2 million of unpaid accrued interest against interest income.

The following table presents the amortized cost basis of loans on nonaccrual status as of the beginning of the reporting period and the end of the reporting period and the amortized cost basis of nonaccrual loans without related expected credit loss. It also shows year-to-date interest income recognized on nonaccrual loans:


	Nonaccrual Financial Assets
Customer Tenure	As of December 31, 2020		As of March 31, 2020		Financial Assets 61 Days or More Past Due, Not on Nonaccrual Status		Nonaccrual Financial Assets With No Allowance as of December 31, 2020		Interest Income Recognized
0 to 5 months	$	12,725,225	$	26,040,593	$	—	$	—	$	1,283,886
6 to 17 months	16,352,270		17,466,450		—		—		1,617,925
18 to 35 months	13,429,551		13,723,295		—		—		1,418,093
36 to 59 months	8,794,918		10,071,288		—		—		1,082,178
60+ months	33,829,640		44,293,545		—		—		4,822,468

Tax advance loans	296,191		41,573		—		—
Unearned interest, insurance and fees	(22,635,352)		(28,510,140)		—		—
Total	$	62,792,443	$	83,126,604	$	—	$	—	$	10,224,550

Under the prior incurred loss methodology, loss contingencies were evaluated as: probable, reasonably possible, or remote. If, at the date of financial statement presentation, information was available that indicated an asset had been impaired and the amount of loss could be reasonably estimated, then an allowance for that loss could be recorded. Recording an allowance for a loss that was considered reasonably possible or remote was not permitted. With the adoption of ASC 326, the Company considers the lifetime potential for losses at the point of origination and records an allowance for that potential, at that point in time, removing the necessity of differentiation between the three loss contingency concepts and impairment. The following disclosures are presented under previously applicable GAAP.


March 31, 2020	Loans individually evaluated for impairment (impaired loans)		Loans collectively evaluated for impairment	Total

Gross loans in bankruptcy, excluding contractually delinquent	$	5,165,752	—	5,165,752
Gross loans contractually delinquent	70,719,727		—	70,719,727
Loans not contractually delinquent and not in bankruptcy	—		1,133,985,887	1,133,985,887
Gross loan balance	75,885,479		1,133,985,887	1,209,871,366
Unearned interest and fees	(16,848,762)		(292,131,962)	(308,980,724)
Net loans	59,036,717		841,853,925	900,890,642
Allowance for credit losses	(54,090,509)		(42,397,347)	(96,487,856)
Loans, net of allowance for credit losses	$	4,946,208	799,456,578	804,402,786


December 31, 2019	Loans individually evaluated for impairment (impaired loans)		Loans collectively evaluated for impairment	Total

Gross loans in bankruptcy, excluding contractually delinquent	$	5,066,019	—	5,066,019
Gross loans contractually delinquent	80,765,569		—	80,765,569
Loans not contractually delinquent and not in bankruptcy	—		1,286,936,992	1,286,936,992
Gross loan balance	85,831,588		1,286,936,992	1,372,768,580
Unearned interest and fees	(19,140,361)		(346,893,706)	(366,034,067)
Net loans	66,691,227		940,043,286	1,006,734,513
Allowance for losses	(61,840,514)		(51,229,127)	(113,069,641)
Loans, net of allowance for losses	$	4,850,713	888,814,159	893,664,872


	March 31, 2020		December 31, 2019
Credit risk
Consumer loans- non-bankrupt accounts	$	1,203,552,152	$	1,366,079,543
Consumer loans- bankrupt accounts	6,319,214		6,689,037
Total gross loans	$	1,209,871,366	$	1,372,768,580

Consumer credit exposure
Credit risk profile based on payment activity, performing	$	1,104,130,714	$	1,255,471,072
Contractual non-performing, 61 or more days delinquent (1)	105,740,652		117,297,508
Total gross loans	$	1,209,871,366	$	1,372,768,580

Credit risk profile based on customer type
New borrower	$	124,800,193	$	155,284,022
Former borrower	127,108,125		161,575,535
Refinance	935,448,882		1,031,380,059
Delinquent refinance	22,514,166		24,528,964
Total gross loans	$	1,209,871,366	$	1,372,768,580


	March 31, 2020			December 31, 2019
Contractual basis:
30-60 days past due	$	49,137,102		$	55,172,208
61-90 days past due	35,020,925			36,531,939
91 days or more past due	70,719,727			80,765,569
Total	$	154,877,754		$	172,469,716

Percentage of period-end gross loans receivable	12.8		%	12.6		%

Recency basis:
30-60 days past due	$	48,206,910		$	54,090,162
61-90 days past due	28,450,942			33,295,364
91 days or more past due	50,669,837			62,565,314
Total	$	127,327,689		$	149,950,840

Percentage of period-end gross loans receivable	10.5		%	10.9		%