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Securities Available for Sale
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Securities Available for Sale Securities Available for Sale
The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of September 30, 2021 and December 31, 2020, were as follows:
September 30, 2021Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Allowance for Credit LossesFair
Value
U.S. agency residential mortgage-backed securities$115,691 $80 $(1,877)$— $113,894 
Asset-backed senior securities(1)
37,635 73 — — 37,708 
Commercial mortgage-backed securities28,963 48 (367)— 28,644 
Other asset-backed securities27,642 244 (40)— 27,846 
U.S. agency securities27,943 15 (548)— 27,410 
CLUB Certificate asset-backed securities(1)
21,520 2,672 (16)— 24,176 
Asset-backed subordinated securities(1)
5,836 6,070 — (96)11,810 
Municipal securities3,302 — (60)— 3,242 
Other securities200 — — — 200 
Total securities available for sale(2)
$268,732 $9,202 $(2,908)$(96)$274,930 

December 31, 2020Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Allowance for Credit LossesFair
Value
Asset-backed senior securities(1)
$75,332 $67 $(27)$— $75,372 
CLUB Certificate asset-backed securities(1)
54,525 576 (772)(4,190)50,139 
Asset-backed subordinated securities(1)
29,107 2,128 (174)(14,546)16,515 
Other securities200 — — — 200 
Total securities available for sale(2)
$159,164 $2,771 $(973)$(18,736)$142,226 
(1)    As of September 30, 2021 and December 31, 2020, $39.0 million and $119.3 million, respectively, of the asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company's obligations as a “sponsor” under the U.S. Risk Retention Rules.
(2)    As of September 30, 2021, and December 31, 2020, includes $248.9 million and $133.5 million, respectively, of securities pledged as collateral at fair value.

The Company’s securities available for sale portfolio includes debt securities primarily obtained in the first quarter of 2021 upon its acquisition of Radius and asset-backed securities related to the Company’s Structured Program transactions. The Company’s Structured Program transactions included (i) asset-backed securitization transactions and (ii) Certificate Program transactions. Certificate Program transactions included CLUB Certificate and Levered Certificate transactions.

The Company sponsored the sale of unsecured personal loans through the issuance of certificate securities under its Certificate Program. The CLUB Certificate issued securities retained by the Company are presented as “CLUB Certificate asset-backed securities” in the securities available for sale tables below. The Levered Certificate issued senior and subordinated securities retained by the Company are presented in aggregate with securities from asset-
backed securitizations as “Asset-backed senior securities” and “Asset-backed subordinated securities,” respectively, in the tables below. The “Other asset-backed securities” caption in the tables below primarily includes investment-grade rated bonds that are collateralized by student loan receivables and small business association loans.

A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded as of September 30, 2021 and December 31, 2020, aggregated by period of continuous unrealized loss, is as follows:
Less than
12 months		12 months
or longer		Total
September 30, 2021Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
U.S. agency residential mortgage-backed securities$100,063 $(1,877)$— $— $100,063 $(1,877)
Asset-backed securities related to Structured Program transactions — — 1,583 (16)1,583 (16)
Other asset-backed securities6,142 (40)— — 6,142 (40)
Commercial mortgage-backed securities25,783 (367)— — 25,783 (367)
U.S. agency securities14,377 (548)— — 14,377 (548)
Municipal securities3,242 (60)— — 3,242 (60)
Total securities with unrealized losses(1)
$149,607 $(2,892)$1,583 $(16)$151,190 $(2,908)
Less than
12 months		12 months
or longer		Total
December 31, 2020Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Asset-backed securities related to Structured Program transactions$26,678 $(855)$6,052 $(118)$32,730 $(973)
Total securities with unrealized losses(1)
$26,678 $(855)$6,052 $(118)$32,730 $(973)
(1)    The number of investment positions with unrealized losses at September 30, 2021 and December 31, 2020 totaled 118 and 55, respectively.

During the third quarter and first nine months of 2020, the Company recorded an allowance for credit loss on those securities where there was a deterioration in future estimated cash flows. The Company also recorded unrealized losses on securities with fair value price reductions due to higher liquidity premiums observed due to the market dislocation related to COVID-19. In the third quarter and first nine months of 2021, the Company deemed it not necessary to record unrealized losses as an allowance for credit loss for certain securities due to the nature of those securities and their investment grade quality.

During the third quarter and first nine months of 2021, the Company recognized $0.5 million and $3.3 million in credit recovery, respectively. During the third quarter and first nine months of 2020, the Company recognized $3.7 million in credit recovery and $3.8 million in credit loss expense, respectively.
The following table presents the activity in the allowance for credit losses for securities available for sale, by major security type, for the third quarters and first nine months of 2021 and 2020:
Allowance for Credit LossesCLUB Certificate asset-backed securitiesAsset-backed subordinated securitiesTotal
Beginning balance as of June 30, 2021
$(40)$(552)$(592)
Reversal of credit loss expense40 456 496 
Ending balance as of September 30, 2021
$— $(96)$(96)
Allowance for Credit LossesCLUB Certificate asset-backed securitiesAsset-backed subordinated securitiesTotal
Beginning balance as of December 31, 2020
$(4,190)$(14,546)$(18,736)
Reversal of credit loss expense236 3,052 3,288 
Reversal of allowance from PCD financial assets3,954 11,398 15,352 
Ending balance as of September 30, 2021
$— $(96)$(96)

Allowance for Credit LossesCLUB Certificate asset-backed securitiesAsset-backed subordinated securitiesTotal
Beginning balance as of June 30, 2020
$(6,587)$(8,984)$(15,571)
Reversal of credit loss expense2,087 1,582 3,669 
Allowance arising from PCD financial assets— (5,640)(5,640)
Ending balance as of September 30, 2020
$(4,500)$(13,042)$(17,542)
Allowance for Credit LossesCLUB Certificate asset-backed securitiesAsset-backed subordinated securitiesTotal
Beginning balance as of January 1, 2020$— $— $— 
Provision for credit loss expense(546)(3,254)(3,800)
Allowance arising from PCD financial assets(3,954)(9,788)(13,742)
Ending balance as of September 30, 2020
$(4,500)$(13,042)$(17,542)

Securities available for sale purchased with credit deterioration during the third quarter and first nine months of 2020 were as follows:
Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
Purchase price of PCD securities at acquisition$446 $25,915 
Allowance for credit losses on PCD securities at acquisition5,640 13,742 
Par value of acquired PCD securities at acquisition$6,086 $39,657 

There were no securities available for sale purchased with credit deterioration during the third quarter and first nine months of 2021.
The contractual maturities of securities available for sale at September 30, 2021, were as follows:
Amortized CostFair Value
Weighted-
average
Yield(1)
Due within 1 year:
Other securities$200 $200 
Total due within 1 year200 200 0.02 %
Due after 5 years through 10 years:
U.S. agency residential mortgage-backed securities394 394 
Other asset-backed securities926 944 
Commercial mortgage-backed securities4,273 4,185 
U.S. agency securities4,023 4,024 
Municipal securities470 462 
Total due after 5 years through 10 years10,086 10,009 0.99 %
Due after 10 years:
U.S. agency residential mortgage-backed securities115,297 113,500 
Other asset-backed securities26,716 26,902 
Commercial mortgage-backed securities24,690 24,459 
U.S. agency securities23,920 23,386 
Municipal securities2,832 2,780 
Total due after 10 years193,455 191,027 1.54 %
Asset-backed securities related to Structured Program transactions
64,991 73,694 13.40 %
Total securities available for sale$268,732 $274,930 4.39 %
(1)    The weighted-average yield is computed using the amortized cost at September 30, 2021.

Proceeds and gross realized gains and losses from sales of securities available for sale were as follows:
Nine Months Ended
September 30,
20212020
Proceeds$106,192 $2,396 
Gross realized gains$708 $3 
Gross realized losses$(952)$(4)
The were no sales of securities available for sale during the third quarters of 2021 and 2020. There were no Structured Program transactions in the third quarter and first nine months of 2021. During the third quarter and first nine months of 2020, the Company and Consumer Loan Underlying Bond Depositor LLC (Depositor), a subsidiary of the Company, sold a combined $0.2 billion and $1.3 billion, respectively, in asset-backed securities related to Structured Program transactions. There were no realized gains or losses related to such sales. For further information, see “Note 8. Fair Value of Assets and Liabilities.”