Schedule of Investment in Receivable Portfolios |
The following table summarizes the changes in the balance of investment in receivable portfolios, net during the periods presented (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2024 | | 2023 | | 2024 | | 2023 | Balance, beginning of period | $ | 3,583,322 | | | $ | 3,330,986 | | | $ | 3,468,432 | | | $ | 3,088,261 | | Negative allowance for expected recoveries - current period purchases (1) | 282,485 | | | 230,559 | | | 856,891 | | | 781,315 | | Collections applied to investment in receivable portfolios, net (2) | (222,149) | | | (162,652) | | | (641,982) | | | (504,672) | | Changes in recoveries (3) | 12,675 | | | (17,067) | | | 6,020 | | | (30,054) | | Put-backs and recalls | (4,577) | | | (3,179) | | | (12,023) | | | (9,214) | | | | | | | | | | Disposals and transfers to real estate owned | (7,055) | | | (3,314) | | | (10,153) | | | (9,558) | | Foreign currency translation adjustments | 74,559 | | | (54,789) | | | 52,075 | | | 4,466 | | Balance, end of period | $ | 3,719,260 | | | $ | 3,320,544 | | | $ | 3,719,260 | | | $ | 3,320,544 | | | | | | | | | | _______________________(1)The table below provides the detail on the establishment of negative allowance for expected recoveries of portfolios purchased during the periods presented: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2024 | | 2023 | | 2024 | | 2023 | Purchase price | $ | 282,485 | | | $ | 230,559 | | | $ | 856,891 | | | $ | 781,315 | | Allowance for credit losses | 667,584 | | | 666,915 | | | 1,961,740 | | | 2,017,060 | | Amortized cost | 950,069 | | | 897,474 | | | 2,818,631 | | | 2,798,375 | | Noncredit discount | 1,220,316 | | | 1,171,383 | | | 3,688,070 | | | 3,225,837 | | Face value | 2,170,385 | | | 2,068,857 | | | 6,506,701 | | | 6,024,212 | | Write-off of amortized cost | (950,069) | | | (897,474) | | | (2,818,631) | | | (2,798,375) | | Write-off of noncredit discount | (1,220,316) | | | (1,171,383) | | | (3,688,070) | | | (3,225,837) | | Negative allowance | 282,485 | | | 230,559 | | | 856,891 | | | 781,315 | | Negative allowance for expected recoveries - current period purchases | $ | 282,485 | | | $ | 230,559 | | | $ | 856,891 | | | $ | 781,315 | |
(2)Collections applied to investment in receivable portfolios, net, is calculated as follows during the periods presented: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2024 | | 2023 | | 2024 | | 2023 | Cash Collections | $ | 550,268 | | | $ | 465,339 | | | $ | 1,607,883 | | | $ | 1,404,217 | | Less - amounts classified to revenue from receivable portfolios | (328,119) | | | (302,687) | | | (965,901) | | | (899,545) | | Collections applied to investment in receivable portfolios, net | $ | 222,149 | | | $ | 162,652 | | | $ | 641,982 | | | $ | 504,672 | |
(3)Changes in recoveries is calculated as follows during the periods presented, where recoveries include cash collections, put-backs and recalls, and other cash-based adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2024 | | 2023 | | 2024 | | 2023 | Recoveries above (below) forecast | $ | 22,962 | | | $ | (4,274) | | | $ | 51,258 | | | $ | (20,109) | | Changes in expected future recoveries | (10,287) | | | (12,793) | | | (45,238) | | | (9,945) | | Changes in recoveries | $ | 12,675 | | | $ | (17,067) | | | $ | 6,020 | | | $ | (30,054) | |
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