Allowance for Credit Losses and Credit Quality Information

12 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Allowance for Credit Losses and Credit Quality Information

Allowance for Credit Losses and Credit Quality Information

The following is a summary of gross loans receivable by Customer Tenure as of:

Customer Tenure	March 31, 2024		March 31, 2023
0 to 5 months	$	73,699,568	$	81,803,668
6 to 17 months	69,616,739		133,650,188
18 to 35 months	140,340,728		135,396,187
36 to 59 months	181,399,293		244,414,255
60+ months	799,703,920		792,189,216
Tax advance loans	12,389,008		2,562,054
Total gross loans	$	1,277,149,256	$	1,390,015,568

The Company uses current payment performance 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. 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.

All loans, except for TALs, 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. The weighted average Rehab Rate at March 31, 2024 and 2023 was 4.9% and 7.1%, respectively. A loan is charged off within the allowance for credit losses in the month following when an account reaches 120 days past due on a recency basis, subject to certain exceptions. Specifically, the Company’s customer accounts in a confirmed bankruptcy are charged off in the month after they reach 60 days past due on a recency basis. The accounts of deceased or incarcerated customers are also charged off in the month after they reach 60 days past due on a recency basis, with the exception of deceased customers with credit life insurance. Subsequent recoveries of amounts charged off, if any, are credited to the allowance.

The following tables provide a breakdown of the Company’s gross loans receivable by current payment performance on a recency basis and year of origination at March 31, 2024:

	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	$	1,094,896,350	$	61,853,967	$	4,807,924	$	109,050	$	25,850	$	1,371	$	1,161,694,512
30 - 60 days past due	34,034,537		4,600,615		610,649		10,856		14,076		5,429		39,276,162
61 - 90 days past due	21,874,701		2,154,561		200,117		17,493		204		—		24,247,076
91 or more days past due	34,560,868		4,600,040		364,386		6,151		5,617		5,436		39,542,498
Total	$	1,185,366,456	$	73,209,183	$	5,983,076	$	143,550	$	45,747	$	12,236	$	1,264,760,248
	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	$	7,441,660	$	860	$	—	$	—	$	—	$	—	$	7,442,520
30 - 60 days past due	4,942,757		788		—		—		—		—		4,943,545
61 - 90 days past due	—		1,650		—		—		—		—		1,650
91 or more days past due	—		1,293		—		—		—		—		1,293
Total	$	12,384,417	$	4,591	$	—	$	—	$	—	$	—	$	12,389,008
Total gross loans													$	1,277,149,256

The following tables provide a breakdown of the Company’s gross loans receivable by current payment performance on a recency basis and year of origination at March 31, 2023:

	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	$	1,200,504,088	$	62,076,656	$	1,998,218	$	148,662	$	23,046	$	6,863	$	1,264,757,533
30 - 60 days past due	40,791,746		4,689,867		160,956		42,700		8,504		2,988		45,696,761
61 - 90 days past due	26,319,250		2,572,733		92,088		40,281		884		—		29,025,236
91 or more days past due	41,832,821		5,944,645		160,361		29,494		4,430		2,233		47,973,984
Total	$	1,309,447,905	$	75,283,901	$	2,411,623	$	261,137	$	36,864	$	12,084	$	1,387,453,514
	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	$	1,932,607	$	3,524	$	—	$	—	$	—	$	—	$	1,936,131
30 - 60 days past due	609,844		736		—		—		—		—		610,580
61 - 90 days past due	—		4,845		—		—		—		—		4,845
91 or more days past due	409		10,089		—		—		—		—		10,498
Total	$	2,542,860	$	19,194	$	—	$	—	$	—	$	—	$	2,562,054
Total gross loans													$	1,390,015,568

The following tables provide a breakdown of the Company’s gross loans receivable by current payment performance on a contractual basis and year of origination at March 31, 2024:

	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	$	1,079,720,968	$	54,770,231	$	3,681,104	$	39,921	$	10,484	$	1,371	$	1,138,224,079
30 - 60 days past due	37,475,784		3,388,380		288,576		1,064		—		—		41,153,804
61 - 90 days past due	26,191,269		2,903,253		208,172		3,430		204		—		29,306,328
91 or more days past due	41,978,436		12,147,320		1,805,223		99,134		35,059		10,865		56,076,037
Total	$	1,185,366,457	$	73,209,184	$	5,983,075	$	143,549	$	45,747	$	12,236	$	1,264,760,248
	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	$	7,441,661	$	—	$	—	$	—	$	—	$	—	$	7,441,661
30 - 60 days past due	4,942,757		—		—		—		—		—		4,942,757
61 - 90 days past due	—		—		—		—		—		—		—
91 or more days past due	—		4,590		—		—		—		—		4,590
Total	$	12,384,418	$	4,590	$	—	$	—	$	—	$	—	$	12,389,008
Total gross loans													$	1,277,149,256

The following tables provide a breakdown of the Company’s gross loans receivable by current payment performance on a contractual basis and year of origination at March 31, 2023:

	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	$	1,174,237,761	$	53,652,011	$	1,554,144	$	64,233	$	5,142	$	1,491	$	1,229,514,782
30 - 60 days past due	47,346,331		3,661,493		77,857		6,714		—		—		51,092,395
61 - 90 days past due	33,012,804		3,030,052		44,129		7,643		—		—		36,094,628
91 or more days past due	54,851,010		14,940,345		735,493		182,547		31,721		10,593		70,751,709
Total	$	1,309,447,906	$	75,283,901	$	2,411,623	$	261,137	$	36,863	$	12,084	$	1,387,453,514
	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	$	1,932,607	$	—	$	—	$	—	$	—	$	—	$	1,932,607
30 - 60 days past due	609,844		—		—		—		—		—		609,844
61 - 90 days past due	—		—		—		—		—		—		—
91 or more days past due	409		19,194		—		—		—		—		19,603
Total	$	2,542,860	$	19,194	$	—	$	—	$	—	$	—	$	2,562,054
Total gross loans													$	1,390,015,568

The following table provides a breakdown of the Company’s gross charge-offs by fiscal year of origination for the years ended March 31, 2024 and 2023:

	2024
	Gross Charge-offs by Origination
Origination Year	Loans		Tax advance loans		Total
2019 and prior	$	17,352	$	—	$	17,352
2020	53,791		—		53,791
2021	301,162		—		301,162
2022	11,095,208		5,197		11,100,405
2023	132,745,783		1,287,512		134,033,295
2024	65,038,754		—		65,038,754
Total	$	209,252,050	$	1,292,709	$	210,544,759

	2023
	Gross Charge-offs by Origination
Origination Year	Loans		Tax advance loans		Total
2018 and prior	$	7,940			$	7,940
2019	33,698				33,698
2020	313,337				313,337
2021	4,663,908		18,716		4,682,624
2022	193,167,575		2,473,341		195,640,916
2023	101,668,877		32,753		101,701,630
Total	$	299,855,335	$	2,524,810	$	302,380,145

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 looks to borrower characteristics as a way to disaggregate loans into pools sharing similar risks.

In determining the allowance for credit losses, the Company examined four borrower risk metrics as noted below.

1.Borrower type

2.Active months

3.Prior loan performance

4.Customer Tenure

To determine how well each metric predicts default risk, the Company used loss rate data over an observation period of twelve months at the loan level. The information value was then calculated for each metric. From this analysis, management determined the metric that had the strongest predictor of default risk was Customer Tenure. The Customer Tenure buckets used in the allowance for credit loss calculation are:

1.0 to 5 months

2.6 to 17 months

3.18 to 35 months

4.36 to 59 months

5.60+ months

Management will continue to monitor this credit metric on a quarterly basis.

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. Management considers whether current credit conditions might suggest a change is needed to the allowance for credit losses by monitoring trends in first pay success for NBs, 60-89 day delinquencies on a recency basis, FICO scores at origination, percent of loan balances that are paying and percentage of gross loans that are acquired loans. If management determines that historical migration rates should be adjusted to reflect expected credit losses, a qualitative adjustment is made to reflect management's judgment regarding observable changes in recent or expected economic trends and conditions, portfolio composition, or other significant events or conditions that affect the current estimate. The decrease in the allowance for credit losses from March 31, 2023 to March 31, 2024 was primarily due to lower expected loss rates on performing loans resulting from improvement in net charge-offs and a decrease in the loan portfolio.

Due to the short term nature of the loan portfolio, forecasted changes in macro-economic variables, such as unemployment levels, general inflation and commodity prices, typically do not have a significant impact on loans outstanding at the end of a particular reporting period, unless those changes are particularly severe and sudden in nature. Therefore, management develops a reasonable and supportable forecast of losses by comparing the most recent six-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. From time to time, the Company will also make changes, as deemed appropriate, to its NB underwriting guidance. As a result, management also considers whether a change in its NB underwriting might suggest a change is needed to the allowance for credit losses. If a change is determined necessary, then the Company has elected to immediately revert back to historical experience past the forecast period. As of March 31, 2024 and 2023, there were no conditions or other factors considered significant enough to warrant a forecast adjustment.

The following table is an aging analysis on a recency basis at amortized cost of the Company’s gross loans receivable at March 31, 2024:

			Days Past Due - Recency Basis
Customer Tenure	Current		30 - 60		61 - 90		Over 90		Total Past Due		Total Loans
0 to 5 months	$	56,802,703	$	4,720,150	$	4,496,518	$	7,680,197	$	16,896,865	$	73,699,568
6 to 17 months	60,634,735		3,155,423		2,075,608		3,750,973		8,982,004		69,616,739
18 to 35 months	126,843,010		5,057,256		3,224,662		5,215,800		13,497,718		140,340,728
36 to 59 months	165,694,013		6,159,335		3,519,743		6,026,202		15,705,280		181,399,293
60+ months	751,720,050		20,183,999		10,930,545		16,869,326		47,983,870		799,703,920
Tax advance loans	7,442,520		4,943,545		1,650		1,293		4,946,488		12,389,008
Total gross loans	1,169,137,031		44,219,708		24,248,726		39,543,791		108,012,225		1,277,149,256
Unearned interest, insurance and fees	(301,616,958)		(7,677,494)		(6,674,554)		(10,777,130)		(25,129,178)		(326,746,136)
Total net loans	$	867,520,073	$	36,542,214	$	17,574,172	$	28,766,661	$	82,883,047	$	950,403,120
Percentage of period-end gross loans receivable			3.5%		1.9%		3.1%		8.5%

The following table is an aging analysis on a recency basis at amortized cost of the Company’s gross loans receivable at March 31, 2023:

			Days Past Due - Recency Basis
Customer Tenure	Current		30 - 60		61 - 90		Over 90		Total Past Due		Total Loans
0 to 5 months	$	64,615,314	$	5,451,276	$	4,407,751	$	7,329,327	$	17,188,354	$	81,803,668
6 to 17 months	113,946,833		6,527,355		4,655,441		8,520,559		19,703,355		133,650,188
18 to 35 months	120,125,821		5,336,994		3,727,331		6,206,041		15,270,366		135,396,187
36 to 59 months	223,734,062		8,070,011		4,839,000		7,771,182		20,680,193		244,414,255
60+ months	742,335,503		20,311,125		11,395,713		18,146,875		49,853,713		792,189,216
Tax advance loans	1,936,131		610,580		4,845		10,498		625,923		2,562,054
Total gross loans	1,266,693,664		46,307,341		29,030,081		47,984,482		123,321,904		1,390,015,568
Unearned interest, insurance and fees	(343,255,876)		(12,548,627)		(7,866,737)		(13,003,109)		(33,418,473)		(376,674,349)
Total net loans	$	923,437,788	$	33,758,714	$	21,163,344	$	34,981,373	$	89,903,431	$	1,013,341,219
Percentage of period-end gross loans receivable			3.3%		2.1%		3.5%		8.9%

The following table provides a breakdown of the Company’s gross loans receivable by current payment performance on a contractual basis and year of origination at March 31, 2024:

			Days Past Due - Contractual Basis
Loans	Current		30 - 60		61 - 90		Over 90		Total Past Due		Total Loans
0 to 5 months	$	55,572,691	$	4,645,860	$	4,784,273	$	8,696,744	$	18,126,877	$	73,699,568
6 to 17 months	58,920,283		2,990,455		2,364,202		5,341,799		10,696,456		69,616,739
18 to 35 months	123,878,546		5,246,778		3,813,284		7,402,120		16,462,182		140,340,728
36 to 59 months	161,614,270		6,388,791		4,435,367		8,960,865		19,785,023		181,399,293
60+ months	738,238,289		21,881,920		13,909,202		25,674,509		61,465,631		799,703,920
Tax advance loans	7,441,661		4,942,757		—		4,590		4,947,347		12,389,008
Total gross loans	1,145,665,740		46,096,561		29,306,328		56,080,627		131,483,516		1,277,149,256
Unearned interest, insurance and fees	(296,584,056)		(7,544,366)		(7,936,622)		(14,681,092)		(30,162,080)		(326,746,136)
Total net loans	$	849,081,684	$	38,552,195	$	21,369,706	$	41,399,535	$	101,321,436	$	950,403,120
Percentage of period-end gross loans receivable			3.6%		2.3%		4.4%		10.3%

The following table provides a breakdown of the Company’s gross loans receivable by current payment performance on a contractual basis and year of origination at March 31, 2023:

			Days Past Due - Contractual Basis
Loans	Current		30 - 60		61 - 90		Over 90		Total Past Due		Total Loans
0 to 5 months	$	61,850,142	$	5,320,659	$	4,864,498	$	9,768,369	$	19,953,526	$	81,803,668
6 to 17 months	109,694,389		6,892,610		5,613,468		11,449,721		23,955,799		133,650,188
18 to 35 months	115,711,782		5,721,694		4,499,010		9,463,701		19,684,405		135,396,187
36 to 59 months	217,821,239		8,991,995		6,078,488		11,522,533		26,593,016		244,414,255
60+ months	724,437,230		24,165,437		15,039,164		28,547,385		67,751,986		792,189,216
Tax advance loans	1,932,607		609,844		—		19,603		629,447		2,562,054
Total gross loans	1,231,447,389		51,702,239		36,094,628		70,771,312		158,568,179		1,390,015,568
Unearned interest, insurance and fees	(333,704,639)		(14,010,568)		(9,781,128)		(19,178,014)		(42,969,710)		(376,674,349)
Total net loans	$	897,742,750	$	37,691,671	$	26,313,500	$	51,593,298	$	115,598,469	$	1,013,341,219
Percentage of period-end gross loans receivable			3.7%		2.6%		5.1%		11.4%

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 income 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.

The following table presents unpaid accrued interest reversed against interest income by Customer Tenure for the years ended March 31, 2024 and 2023:

	Unpaid Accrued Interest Reversed Against Interest Income
	2024		2023
Customer Tenure
0 to 5 months	$	(5,337,159)	$	(9,280,329)
6 to 17 months	(3,251,451)		(5,790,516)
18 to 35 months	(3,381,665)		(4,673,972)
36 to 59 months	(4,055,663)		(4,596,229)
60+ months	(10,495,899)		(12,191,199)
Total	$	(26,521,837)	$	(36,532,245)

The following table presents the amortized cost basis of loans on nonaccrual status as of March 31, 2024 and March 31, 2023, as well as interest income recognized on nonaccrual loans for the years ended March 31, 2024, 2023, and 2022:

	Nonaccrual Loans Receivable
Customer Tenure	As of March 31, 2024		As of March 31, 2023		Interest Income Recognized Fiscal 2024		Interest Income Recognized Fiscal 2023		Interest Income Recognized Fiscal 2022
0 to 5 months	$	13,971,062	$	15,781,494	$	1,024,573	$	2,032,098	$	1,485,356
6 to 17 months	8,507,503		18,288,714		1,522,705		1,815,167		1,662,082
18 to 35 months	12,569,729		15,551,806		1,730,680		2,385,356		2,292,776
36 to 59 months	15,250,596		19,745,397		2,364,522		2,357,340		1,602,011
60+ months	45,091,589		49,285,814		6,547,368		7,017,026		5,615,521
Tax advance loans	4,590		19,603		—		—		—
Unearned interest, insurance and fees	(24,405,895)		(32,158,640)		—		—		—
Total	$	70,989,174	$	86,514,188	$	13,189,848	$	15,606,987	$	12,657,746

As of March 31, 2024 and March 31, 2023, there were no loans receivable 61 days or more past due, not on nonaccrual status, and no loans receivable on nonaccrual status with no related allowance for credit losses.

The following is a summary of the changes in the allowance for credit losses for the years ended March 31, 2024, 2023, and 2022:

	2024		2023		2022
Balance at beginning of period	$	125,552,733	$	134,242,862	$	91,722,288
Provision for credit losses	156,973,220		259,463,199		186,207,341
Charge-offs1	(210,544,759)		(302,380,145)		(164,747,552)
Recoveries2	30,981,617		34,226,817		21,060,785
Net charge-off	(179,563,142)		(268,153,328)		(143,686,767)
Balance at end of period	$	102,962,811	$	125,552,733	$	134,242,862