XML 28 R14.htm IDEA: XBRL DOCUMENT v3.22.0.1
Loans to Bank Customers
 12 Months Ended
Dec. 31, 2021
Loans and Leases Receivable Disclosure [Abstract]  
Loans to Bank Customers Loans to Bank Customers
The following table presents total outstanding loans, gross of the related allowance for credit losses, and a summary of the related payment status:
30-59 Days Past Due60-89 Days Past Due90 Days or More Past DueTotal Past DueTotal Current or Less Than 30 Days Past DueTotal Outstanding
(In thousands)
December 31, 2021
Residential$— $— $— $— $3,722 $3,722 
Commercial— — — — 3,392 3,392 
Installment— — 3 3 1,340 1,343 
Consumer2,244 — — 2,244 7,788 10,032 
Secured credit card43 98 853 994 5,342 6,336 
Total loans$2,287 $98 $856 $3,241 $21,584 $24,825 
Percentage of outstanding9.2 %0.4 %3.5 %13.1 %86.9 %100.0 %
December 31, 2020
Residential$— $— $— $— $3,008 $3,008 
Commercial— — — — 3,435 3,435 
Installment— — — — 497 497 
Secured credit card864 699 1,363 2,926 11,902 14,828 
Total loans$864 $699 $1,363 $2,926 $18,842 $21,768 
Percentage of outstanding4.0 %3.2 %6.3 %13.4 %86.6 %100.0 %
Beginning in 2021, we introduced an optional overdraft protection program service on certain demand deposit account programs that allows cardholders who opt-in to spend up to a pre-authorized amount in excess of their available card balance. When overdrawn, the purchase related balances due on these deposit accounts are reclassified as consumer loans. Fees due from our cardholders for our overdraft service are included as a component of accounts receivable. Overdrawn balances are unsecured and considered immediately due from the cardholder.
In December 2021, we made the determination to sell a portion of our secured credit card portfolio. As of December 31, 2021, this portion of our secured credit card portfolio has been reclassified as loans held for sale, and is included in the long-term portion of prepaid and other assets on our consolidated balance sheet. Upon re-classification, we reversed any previous allowance for credit loss on these portfolios and recorded an estimated valuation allowance to reflect the portfolio at its estimated fair value, which resulted in a loss of approximately $4.4 million. This has been recorded as a component of other income and expenses on our consolidated statement of operations. As of December 31, 2021, the fair value of the loans held for sale amounted to approximately $5.1 million.
Nonperforming Loans
The following table presents the carrying value, gross of the related allowance for credit losses, of our nonperforming loans. See Note 2—Summary of Significant Accounting Policies for further information on the criteria for classification as nonperforming.
December 31, 2021December 31, 2020
(In thousands)
Residential$195 $240 
Installment115 137 
Secured credit card853 1,363 
Total loans$1,163 $1,740 
Note 6—Loans to Bank Customers (continued)
Credit Quality Indicators
We closely monitor and assess the credit quality and credit risk of our loan portfolio on an ongoing basis. We continuously review and update loan risk classifications. We evaluate our loans using non-classified or classified as the primary credit quality indicator. Classified loans include those designated as substandard, doubtful, or loss, consistent with regulatory guidelines. Secured credit card loans are considered classified if they are greater than 90 days past due. However, our secured credit card portfolio is collateralized by cash deposits made by each cardholder in an amount equal to the user's available credit limit, which mitigates the risk of any significant credit losses we expect to incur.
The table below presents the carrying value, gross of the related allowance for credit losses, of our loans within the primary credit quality indicators related to our loan portfolio:
December 31, 2021December 31, 2020
Non-ClassifiedClassifiedNon-ClassifiedClassified
(In thousands)
Residential$3,481 $241 $2,768 $240 
Commercial3,392 — 3,435 — 
Installment1,228 115 340 137 
Consumer10,032 — — — 
Secured credit card5,483 853 13,465 1,363 
Total loans$23,616 $1,209 $20,008 $1,740 
Impaired Loans and Troubled Debt Restructurings
When, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession for other than an insignificant period of time to a borrower that we would not otherwise consider, the related loan is classified as a Troubled Debt Restructuring, or TDR. Our TDR modifications related to extensions of the maturity dates at a stated interest rate lower than the current market rate for new debt with similar risk. As of December 31, 2021, none of our TDR modifications have been made in response to the COVID-19 pandemic.
The following table presents our impaired loans and loans that we modified as TDRs as of December 31, 2021 and 2020:
December 31, 2021December 31, 2020
Unpaid Principal BalanceCarrying ValueUnpaid Principal BalanceCarrying Value
(In thousands)
Residential$195 $146 $240 $180 
Installment115 86 137 103 
Allowance for Credit Losses
Activity in the allowance for credit losses on our loan portfolio consisted of the following:
Year Ended December 31,
202120202019
(In thousands)
Balance, beginning of period$757 $1,166 $1,144 
Provision for loans24,978 859 2,405 
Loans charged off(20,381)(1,697)(2,674)
Recoveries of loans previously charged off201 429 291 
Balance, end of period$5,555 $757 $1,166 
Activity within our allowance for credit losses has increased during the comparable prior year periods principally due to the introduction of our overdraft protection program services on certain demand deposit accounts.