| Finance Receivables, Credit Quality Information, and Allowance for Credit Losses |
Note 3. Finance Receivables, Credit Quality Information, and Allowance for Credit Losses Net finance receivables for the periods indicated consisted of the following:
|
|
|
|
|
|
|
|
|
Dollars in thousands |
|
June 30, 2024 |
|
|
December 31, 2023 |
|
Large loans |
|
$ |
1,266,032 |
|
|
$ |
1,274,137 |
|
Small loans |
|
|
505,640 |
|
|
|
493,473 |
|
Retail loans |
|
|
2,071 |
|
|
|
3,800 |
|
Net finance receivables |
|
$ |
1,773,743 |
|
|
$ |
1,771,410 |
|
Net finance receivables included net deferred origination fees and costs of $14.2 million and $15.1 million as of June 30, 2024 and December 31, 2023, respectively. The credit quality of the Company’s finance receivable portfolio is dependent on the Company’s ability to enforce sound underwriting standards, maintain diligent servicing of the portfolio, and respond to changing economic conditions as it manages and grows its portfolio. The allowance for credit losses uses FICO scores and delinquency as key data points in estimating the allowance. The Company uses six FICO band categories to assess FICO scores. The first three FICO band categories include subprime FICO scores below 620. The fourth and fifth FICO band categories include near-prime FICO scores ranging from 620 to 659. The sixth FICO band category includes prime FICO scores of 660 or higher. Net finance receivables by product, FICO band at origination, and origination year as of June 30, 2024 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Finance Receivables by Origination Year |
|
Dollars in thousands |
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
Prior |
|
|
Total Net Finance Receivables |
|
Large Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Band |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
47,762 |
|
|
$ |
58,131 |
|
|
$ |
18,964 |
|
|
$ |
6,212 |
|
|
$ |
1,431 |
|
|
$ |
665 |
|
|
$ |
133,165 |
|
2 |
|
|
29,083 |
|
|
|
31,972 |
|
|
|
10,225 |
|
|
|
3,083 |
|
|
|
454 |
|
|
|
191 |
|
|
|
75,008 |
|
3 |
|
|
47,051 |
|
|
|
58,352 |
|
|
|
27,902 |
|
|
|
8,357 |
|
|
|
946 |
|
|
|
158 |
|
|
|
142,766 |
|
4 |
|
|
65,416 |
|
|
|
83,193 |
|
|
|
41,088 |
|
|
|
11,697 |
|
|
|
1,618 |
|
|
|
230 |
|
|
|
203,242 |
|
5 |
|
|
69,913 |
|
|
|
90,889 |
|
|
|
45,146 |
|
|
|
14,545 |
|
|
|
1,906 |
|
|
|
134 |
|
|
|
222,533 |
|
6 |
|
|
148,723 |
|
|
|
211,954 |
|
|
|
96,478 |
|
|
|
28,250 |
|
|
|
3,752 |
|
|
|
161 |
|
|
|
489,318 |
|
Total large loans |
|
$ |
407,948 |
|
|
$ |
534,491 |
|
|
$ |
239,803 |
|
|
$ |
72,144 |
|
|
$ |
10,107 |
|
|
$ |
1,539 |
|
|
$ |
1,266,032 |
|
Small Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Band |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
42,607 |
|
|
$ |
29,277 |
|
|
$ |
4,291 |
|
|
$ |
656 |
|
|
$ |
86 |
|
|
$ |
41 |
|
|
$ |
76,958 |
|
2 |
|
|
19,202 |
|
|
|
14,657 |
|
|
|
2,078 |
|
|
|
209 |
|
|
|
9 |
|
|
|
10 |
|
|
|
36,165 |
|
3 |
|
|
30,526 |
|
|
|
24,420 |
|
|
|
2,688 |
|
|
|
206 |
|
|
|
9 |
|
|
|
4 |
|
|
|
57,853 |
|
4 |
|
|
40,140 |
|
|
|
32,666 |
|
|
|
3,170 |
|
|
|
186 |
|
|
|
6 |
|
|
|
7 |
|
|
|
76,175 |
|
5 |
|
|
44,373 |
|
|
|
39,626 |
|
|
|
4,648 |
|
|
|
166 |
|
|
|
4 |
|
|
|
4 |
|
|
|
88,821 |
|
6 |
|
|
89,227 |
|
|
|
71,556 |
|
|
|
8,648 |
|
|
|
227 |
|
|
|
5 |
|
|
|
5 |
|
|
|
169,668 |
|
Total small loans |
|
$ |
266,075 |
|
|
$ |
212,202 |
|
|
$ |
25,523 |
|
|
$ |
1,650 |
|
|
$ |
119 |
|
|
$ |
71 |
|
|
$ |
505,640 |
|
Retail Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Band |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
5 |
|
2 |
|
|
— |
|
|
|
— |
|
|
|
119 |
|
|
|
10 |
|
|
|
— |
|
|
|
1 |
|
|
|
130 |
|
3 |
|
|
— |
|
|
|
— |
|
|
|
355 |
|
|
|
84 |
|
|
|
— |
|
|
|
1 |
|
|
|
440 |
|
4 |
|
|
— |
|
|
|
— |
|
|
|
411 |
|
|
|
155 |
|
|
|
7 |
|
|
|
5 |
|
|
|
578 |
|
5 |
|
|
— |
|
|
|
— |
|
|
|
302 |
|
|
|
126 |
|
|
|
3 |
|
|
|
4 |
|
|
|
435 |
|
6 |
|
|
— |
|
|
|
— |
|
|
|
330 |
|
|
|
147 |
|
|
|
5 |
|
|
|
1 |
|
|
|
483 |
|
Total retail loans |
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
1,518 |
|
|
$ |
522 |
|
|
$ |
16 |
|
|
$ |
14 |
|
|
$ |
2,071 |
|
Total Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Band |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
90,369 |
|
|
$ |
87,409 |
|
|
$ |
23,256 |
|
|
$ |
6,868 |
|
|
$ |
1,518 |
|
|
$ |
708 |
|
|
$ |
210,128 |
|
2 |
|
|
48,285 |
|
|
|
46,629 |
|
|
|
12,422 |
|
|
|
3,302 |
|
|
|
463 |
|
|
|
202 |
|
|
|
111,303 |
|
3 |
|
|
77,577 |
|
|
|
82,772 |
|
|
|
30,945 |
|
|
|
8,647 |
|
|
|
955 |
|
|
|
163 |
|
|
|
201,059 |
|
4 |
|
|
105,556 |
|
|
|
115,859 |
|
|
|
44,669 |
|
|
|
12,038 |
|
|
|
1,631 |
|
|
|
242 |
|
|
|
279,995 |
|
5 |
|
|
114,286 |
|
|
|
130,515 |
|
|
|
50,096 |
|
|
|
14,837 |
|
|
|
1,913 |
|
|
|
142 |
|
|
|
311,789 |
|
6 |
|
|
237,950 |
|
|
|
283,510 |
|
|
|
105,456 |
|
|
|
28,624 |
|
|
|
3,762 |
|
|
|
167 |
|
|
|
659,469 |
|
Total loans |
|
$ |
674,023 |
|
|
$ |
746,694 |
|
|
$ |
266,844 |
|
|
$ |
74,316 |
|
|
$ |
10,242 |
|
|
$ |
1,624 |
|
|
$ |
1,773,743 |
|
Net finance receivables by product, FICO band at origination, and origination year as of December 31, 2023 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Finance Receivables by Origination Year |
|
Dollars in thousands |
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Prior |
|
|
Total Net Finance Receivables |
|
Large Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Band |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
83,107 |
|
|
$ |
28,068 |
|
|
$ |
9,542 |
|
|
$ |
2,510 |
|
|
$ |
980 |
|
|
$ |
347 |
|
|
$ |
124,554 |
|
2 |
|
|
46,855 |
|
|
|
16,964 |
|
|
|
5,342 |
|
|
|
1,077 |
|
|
|
309 |
|
|
|
83 |
|
|
|
70,630 |
|
3 |
|
|
86,191 |
|
|
|
45,778 |
|
|
|
14,999 |
|
|
|
2,201 |
|
|
|
316 |
|
|
|
66 |
|
|
|
149,551 |
|
4 |
|
|
120,054 |
|
|
|
65,753 |
|
|
|
20,712 |
|
|
|
3,481 |
|
|
|
592 |
|
|
|
55 |
|
|
|
210,647 |
|
5 |
|
|
128,901 |
|
|
|
69,706 |
|
|
|
23,779 |
|
|
|
4,043 |
|
|
|
496 |
|
|
|
22 |
|
|
|
226,947 |
|
6 |
|
|
291,795 |
|
|
|
144,663 |
|
|
|
46,630 |
|
|
|
7,936 |
|
|
|
732 |
|
|
|
52 |
|
|
|
491,808 |
|
Total large loans |
|
$ |
756,903 |
|
|
$ |
370,932 |
|
|
$ |
121,004 |
|
|
$ |
21,248 |
|
|
$ |
3,425 |
|
|
$ |
625 |
|
|
$ |
1,274,137 |
|
Small Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Band |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
64,664 |
|
|
$ |
10,459 |
|
|
$ |
1,625 |
|
|
$ |
172 |
|
|
$ |
68 |
|
|
$ |
18 |
|
|
$ |
77,006 |
|
2 |
|
|
31,289 |
|
|
|
5,886 |
|
|
|
724 |
|
|
|
36 |
|
|
|
11 |
|
|
|
9 |
|
|
|
37,955 |
|
3 |
|
|
51,222 |
|
|
|
8,099 |
|
|
|
717 |
|
|
|
31 |
|
|
|
6 |
|
|
|
1 |
|
|
|
60,076 |
|
4 |
|
|
65,743 |
|
|
|
10,074 |
|
|
|
679 |
|
|
|
19 |
|
|
|
10 |
|
|
|
3 |
|
|
|
76,528 |
|
5 |
|
|
74,207 |
|
|
|
13,838 |
|
|
|
632 |
|
|
|
14 |
|
|
|
4 |
|
|
|
1 |
|
|
|
88,696 |
|
6 |
|
|
126,400 |
|
|
|
25,679 |
|
|
|
1,111 |
|
|
|
15 |
|
|
|
5 |
|
|
|
2 |
|
|
|
153,212 |
|
Total small loans |
|
$ |
413,525 |
|
|
$ |
74,035 |
|
|
$ |
5,488 |
|
|
$ |
287 |
|
|
$ |
104 |
|
|
$ |
34 |
|
|
$ |
493,473 |
|
Retail Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Band |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
5 |
|
|
$ |
10 |
|
2 |
|
|
— |
|
|
|
213 |
|
|
|
30 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
243 |
|
3 |
|
|
— |
|
|
|
634 |
|
|
|
211 |
|
|
|
3 |
|
|
|
1 |
|
|
|
1 |
|
|
|
850 |
|
4 |
|
|
— |
|
|
|
650 |
|
|
|
352 |
|
|
|
36 |
|
|
|
— |
|
|
|
4 |
|
|
|
1,042 |
|
5 |
|
|
— |
|
|
|
508 |
|
|
|
278 |
|
|
|
24 |
|
|
|
— |
|
|
|
4 |
|
|
|
814 |
|
6 |
|
|
— |
|
|
|
524 |
|
|
|
286 |
|
|
|
28 |
|
|
|
2 |
|
|
|
1 |
|
|
|
841 |
|
Total retail loans |
|
$ |
1 |
|
|
$ |
2,529 |
|
|
$ |
1,159 |
|
|
$ |
92 |
|
|
$ |
4 |
|
|
$ |
15 |
|
|
$ |
3,800 |
|
Total Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FICO Band |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
$ |
147,772 |
|
|
$ |
38,527 |
|
|
$ |
11,169 |
|
|
$ |
2,683 |
|
|
$ |
1,049 |
|
|
$ |
370 |
|
|
$ |
201,570 |
|
2 |
|
|
78,144 |
|
|
|
23,063 |
|
|
|
6,096 |
|
|
|
1,113 |
|
|
|
320 |
|
|
|
92 |
|
|
|
108,828 |
|
3 |
|
|
137,413 |
|
|
|
54,511 |
|
|
|
15,927 |
|
|
|
2,235 |
|
|
|
323 |
|
|
|
68 |
|
|
|
210,477 |
|
4 |
|
|
185,797 |
|
|
|
76,477 |
|
|
|
21,743 |
|
|
|
3,536 |
|
|
|
602 |
|
|
|
62 |
|
|
|
288,217 |
|
5 |
|
|
203,108 |
|
|
|
84,052 |
|
|
|
24,689 |
|
|
|
4,081 |
|
|
|
500 |
|
|
|
27 |
|
|
|
316,457 |
|
6 |
|
|
418,195 |
|
|
|
170,866 |
|
|
|
48,027 |
|
|
|
7,979 |
|
|
|
739 |
|
|
|
55 |
|
|
|
645,861 |
|
Total loans |
|
$ |
1,170,429 |
|
|
$ |
447,496 |
|
|
$ |
127,651 |
|
|
$ |
21,627 |
|
|
$ |
3,533 |
|
|
$ |
674 |
|
|
$ |
1,771,410 |
|
Credit losses by product and origination year for the six months ended June 30, 2024 and 2023, respectively, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Losses by Origination Year |
|
Dollars in thousands |
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
Prior |
|
|
Total Credit Losses |
|
Large loans |
|
$ |
280 |
|
|
$ |
33,165 |
|
|
$ |
25,664 |
|
|
$ |
7,228 |
|
|
$ |
1,012 |
|
|
$ |
319 |
|
|
$ |
67,668 |
|
Small loans |
|
|
364 |
|
|
|
30,172 |
|
|
|
8,416 |
|
|
|
674 |
|
|
|
34 |
|
|
|
18 |
|
|
|
39,678 |
|
Retail loans |
|
|
— |
|
|
|
— |
|
|
|
291 |
|
|
|
154 |
|
|
|
11 |
|
|
|
4 |
|
|
|
460 |
|
Total loans |
|
$ |
644 |
|
|
$ |
63,337 |
|
|
$ |
34,371 |
|
|
$ |
8,056 |
|
|
$ |
1,057 |
|
|
$ |
341 |
|
|
$ |
107,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Losses by Origination Year |
|
Dollars in thousands |
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
Prior |
|
|
Total Credit Losses |
|
Large loans |
|
$ |
243 |
|
|
$ |
35,477 |
|
|
$ |
21,693 |
|
|
$ |
3,207 |
|
|
$ |
970 |
|
|
$ |
168 |
|
|
$ |
61,758 |
|
Small loans |
|
|
196 |
|
|
|
31,402 |
|
|
|
7,711 |
|
|
|
475 |
|
|
|
41 |
|
|
|
3 |
|
|
|
39,828 |
|
Retail loans |
|
|
— |
|
|
|
328 |
|
|
|
233 |
|
|
|
47 |
|
|
|
22 |
|
|
|
2 |
|
|
|
632 |
|
Total loans |
|
$ |
439 |
|
|
$ |
67,207 |
|
|
$ |
29,637 |
|
|
$ |
3,729 |
|
|
$ |
1,033 |
|
|
$ |
173 |
|
|
$ |
102,218 |
|
The contractual delinquency of the net finance receivables portfolio by product and aging for the periods indicated are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2024 |
|
|
|
Large |
|
|
Small |
|
|
Retail |
|
|
Total |
|
Dollars in thousands |
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
Current |
|
$ |
1,081,617 |
|
|
|
85.5 |
% |
|
$ |
414,192 |
|
|
|
81.9 |
% |
|
$ |
1,410 |
|
|
|
68.0 |
% |
|
$ |
1,497,219 |
|
|
|
84.4 |
% |
1 to 29 days past due |
|
|
107,983 |
|
|
|
8.5 |
% |
|
|
45,433 |
|
|
|
9.0 |
% |
|
|
372 |
|
|
|
18.0 |
% |
|
|
153,788 |
|
|
|
8.7 |
% |
Delinquent accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 to 59 days |
|
|
22,025 |
|
|
|
1.7 |
% |
|
|
12,822 |
|
|
|
2.6 |
% |
|
|
77 |
|
|
|
3.7 |
% |
|
|
34,924 |
|
|
|
1.9 |
% |
60 to 89 days |
|
|
17,373 |
|
|
|
1.4 |
% |
|
|
10,261 |
|
|
|
2.0 |
% |
|
|
55 |
|
|
|
2.7 |
% |
|
|
27,689 |
|
|
|
1.6 |
% |
90 to 119 days |
|
|
13,407 |
|
|
|
1.1 |
% |
|
|
8,135 |
|
|
|
1.6 |
% |
|
|
65 |
|
|
|
3.1 |
% |
|
|
21,607 |
|
|
|
1.2 |
% |
120 to 149 days |
|
|
11,825 |
|
|
|
0.9 |
% |
|
|
7,471 |
|
|
|
1.5 |
% |
|
|
37 |
|
|
|
1.8 |
% |
|
|
19,333 |
|
|
|
1.1 |
% |
150 to 179 days |
|
|
11,802 |
|
|
|
0.9 |
% |
|
|
7,326 |
|
|
|
1.4 |
% |
|
|
55 |
|
|
|
2.7 |
% |
|
|
19,183 |
|
|
|
1.1 |
% |
Total delinquency |
|
$ |
76,432 |
|
|
|
6.0 |
% |
|
$ |
46,015 |
|
|
|
9.1 |
% |
|
$ |
289 |
|
|
|
14.0 |
% |
|
$ |
122,736 |
|
|
|
6.9 |
% |
Total net finance receivables |
|
$ |
1,266,032 |
|
|
|
100.0 |
% |
|
$ |
505,640 |
|
|
|
100.0 |
% |
|
$ |
2,071 |
|
|
|
100.0 |
% |
|
$ |
1,773,743 |
|
|
|
100.0 |
% |
Net finance receivables in nonaccrual status |
|
$ |
40,509 |
|
|
|
3.2 |
% |
|
$ |
24,557 |
|
|
|
4.9 |
% |
|
$ |
183 |
|
|
|
8.8 |
% |
|
$ |
65,249 |
|
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
|
Large |
|
|
Small |
|
|
Retail |
|
|
Total |
|
Dollars in thousands |
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
|
$ |
|
|
% |
|
Current |
|
$ |
1,084,518 |
|
|
|
85.1 |
% |
|
$ |
406,203 |
|
|
|
82.4 |
% |
|
$ |
2,620 |
|
|
|
69.0 |
% |
|
$ |
1,493,341 |
|
|
|
84.3 |
% |
1 to 29 days past due |
|
|
109,483 |
|
|
|
8.6 |
% |
|
|
45,119 |
|
|
|
9.1 |
% |
|
|
594 |
|
|
|
15.6 |
% |
|
|
155,196 |
|
|
|
8.8 |
% |
Delinquent accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 to 59 days |
|
|
22,587 |
|
|
|
1.7 |
% |
|
|
12,053 |
|
|
|
2.4 |
% |
|
|
116 |
|
|
|
3.1 |
% |
|
|
34,756 |
|
|
|
1.9 |
% |
60 to 89 days |
|
|
19,844 |
|
|
|
1.6 |
% |
|
|
11,253 |
|
|
|
2.3 |
% |
|
|
115 |
|
|
|
3.0 |
% |
|
|
31,212 |
|
|
|
1.8 |
% |
90 to 119 days |
|
|
16,951 |
|
|
|
1.3 |
% |
|
|
10,030 |
|
|
|
2.0 |
% |
|
|
126 |
|
|
|
3.2 |
% |
|
|
27,107 |
|
|
|
1.5 |
% |
120 to 149 days |
|
|
10,938 |
|
|
|
0.9 |
% |
|
|
4,247 |
|
|
|
0.9 |
% |
|
|
132 |
|
|
|
3.5 |
% |
|
|
15,317 |
|
|
|
0.9 |
% |
150 to 179 days |
|
|
9,816 |
|
|
|
0.8 |
% |
|
|
4,568 |
|
|
|
0.9 |
% |
|
|
97 |
|
|
|
2.6 |
% |
|
|
14,481 |
|
|
|
0.8 |
% |
Total delinquency |
|
$ |
80,136 |
|
|
|
6.3 |
% |
|
$ |
42,151 |
|
|
|
8.5 |
% |
|
$ |
586 |
|
|
|
15.4 |
% |
|
$ |
122,873 |
|
|
|
6.9 |
% |
Total net finance receivables |
|
$ |
1,274,137 |
|
|
|
100.0 |
% |
|
$ |
493,473 |
|
|
|
100.0 |
% |
|
$ |
3,800 |
|
|
|
100.0 |
% |
|
$ |
1,771,410 |
|
|
|
100.0 |
% |
Net finance receivables in nonaccrual status |
|
$ |
44,627 |
|
|
|
3.5 |
% |
|
$ |
21,850 |
|
|
|
4.4 |
% |
|
$ |
394 |
|
|
|
10.4 |
% |
|
$ |
66,871 |
|
|
|
3.8 |
% |
The accrual of interest income on finance receivables is suspended when an account becomes 90 days delinquent. If a loan is charged off, the accrued interest is reversed as a reduction of interest and fee income. During the three months ended June 30, 2024 and 2023, the Company reversed $6.5 million and $6.4 million of accrued interest as reductions of interest and fee income, respectively. The Company reversed $11.6 million and $11.1 million of accrued interest as reductions of interest and fee income for the six months ended June 30, 2024 and 2023, respectively. The following are reconciliations of the allowance for credit losses by product for the three and six months ended June 30, 2024 and 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands |
Large |
|
|
Small |
|
|
Retail |
|
|
Total |
|
Beginning balance at April 1, 2024 |
$ |
126,528 |
|
|
$ |
60,142 |
|
|
$ |
430 |
|
|
$ |
187,100 |
|
Provision for credit losses |
|
31,493 |
|
|
|
22,271 |
|
|
|
38 |
|
|
|
53,802 |
|
Credit losses |
|
(35,957 |
) |
|
|
(22,490 |
) |
|
|
(166 |
) |
|
|
(58,613 |
) |
Recoveries |
|
1,914 |
|
|
|
1,175 |
|
|
|
22 |
|
|
|
3,111 |
|
Ending balance at June 30, 2024 |
$ |
123,978 |
|
|
$ |
61,098 |
|
|
$ |
324 |
|
|
$ |
185,400 |
|
Net finance receivables at June 30, 2024 |
$ |
1,266,032 |
|
|
$ |
505,640 |
|
|
$ |
2,071 |
|
|
$ |
1,773,743 |
|
Allowance as percentage of net finance receivables at June 30, 2024 |
|
9.8 |
% |
|
|
12.1 |
% |
|
|
15.6 |
% |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands |
Large |
|
|
Small |
|
|
Retail |
|
|
Total |
|
Beginning balance at April 1, 2023 |
$ |
120,382 |
|
|
$ |
62,112 |
|
|
$ |
1,306 |
|
|
$ |
183,800 |
|
Provision for credit losses |
|
33,556 |
|
|
|
18,759 |
|
|
|
236 |
|
|
|
52,551 |
|
Credit losses |
|
(33,661 |
) |
|
|
(23,448 |
) |
|
|
(500 |
) |
|
|
(57,609 |
) |
Recoveries |
|
1,596 |
|
|
|
1,045 |
|
|
|
17 |
|
|
|
2,658 |
|
Ending balance at June 30, 2023 |
$ |
121,873 |
|
|
$ |
58,468 |
|
|
$ |
1,059 |
|
|
$ |
181,400 |
|
Net finance receivables at June 30, 2023 |
$ |
1,238,031 |
|
|
$ |
444,590 |
|
|
$ |
6,316 |
|
|
$ |
1,688,937 |
|
Allowance as percentage of net finance receivables at June 30, 2023 |
|
9.8 |
% |
|
|
13.2 |
% |
|
|
16.8 |
% |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands |
Large |
|
|
Small |
|
|
Retail |
|
|
Total |
|
Beginning balance at January 1, 2024 |
$ |
127,992 |
|
|
$ |
58,736 |
|
|
$ |
672 |
|
|
$ |
187,400 |
|
Provision for credit losses |
|
60,148 |
|
|
|
40,000 |
|
|
|
77 |
|
|
|
100,225 |
|
Credit losses |
|
(67,668 |
) |
|
|
(39,678 |
) |
|
|
(460 |
) |
|
|
(107,806 |
) |
Recoveries |
|
3,506 |
|
|
|
2,040 |
|
|
|
35 |
|
|
|
5,581 |
|
Ending balance at June 30, 2024 |
$ |
123,978 |
|
|
$ |
61,098 |
|
|
$ |
324 |
|
|
$ |
185,400 |
|
Net finance receivables at June 30, 2024 |
$ |
1,266,032 |
|
|
$ |
505,640 |
|
|
$ |
2,071 |
|
|
$ |
1,773,743 |
|
Allowance as percentage of net finance receivables at June 30, 2024 |
|
9.8 |
% |
|
|
12.1 |
% |
|
|
15.6 |
% |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollars in thousands |
Large |
|
|
Small |
|
|
Retail |
|
|
Total |
|
Beginning balance at January 1, 2023 |
$ |
119,592 |
|
|
$ |
57,915 |
|
|
$ |
1,293 |
|
|
$ |
178,800 |
|
Provision for credit losses |
|
61,265 |
|
|
|
38,578 |
|
|
|
376 |
|
|
|
100,219 |
|
Credit losses |
|
(61,758 |
) |
|
|
(39,828 |
) |
|
|
(632 |
) |
|
|
(102,218 |
) |
Recoveries |
|
2,774 |
|
|
|
1,803 |
|
|
|
22 |
|
|
|
4,599 |
|
Ending balance at June 30, 2023 |
$ |
121,873 |
|
|
$ |
58,468 |
|
|
$ |
1,059 |
|
|
$ |
181,400 |
|
Net finance receivables at June 30, 2023 |
$ |
1,238,031 |
|
|
$ |
444,590 |
|
|
$ |
6,316 |
|
|
$ |
1,688,937 |
|
Allowance as percentage of net finance receivables at June 30, 2023 |
|
9.8 |
% |
|
|
13.2 |
% |
|
|
16.8 |
% |
|
|
10.7 |
% |
The Company uses certain loan modification programs for borrowers experiencing financial difficulties as a loss mitigation strategy to improve collectability of the loans and assist customers through financial setbacks. The programs consist of offering payment deferrals, interest rate reductions, term extensions, and, in limited instances, settlements. Customers may also pursue financial assistance through external sources, such as filing for bankruptcy protection. Modification programs available to our customers are described in more detail below: •Customers with temporary hardships may be offered payment deferrals related to past due payments. Such deferrals extend the customer’s maturity date and are generally considered insignificant delays. During the second quarter of 2023, the Company enhanced its policy for determining an insignificant delay in payment. The Company’s previous policy for an insignificant delay in payment was two or fewer deferrals in a rolling twelve-month period, which was updated to be three or fewer deferrals in a rolling twelve-month period. The rolling twelve-month period for the prior-year disclosures begins on or after January 1, 2023 (the date of adoption). The change had no material impact to the Company's disclosures. •Customers with delinquent loans who meet certain criteria are eligible to receive a reduced interest rate and/or term extension, making the monthly payments more affordable. •The Company may also agree to settle a past-due loan by accepting less than the full principal balance owed in certain limited cases once it is determined that collection of the entire outstanding balance is unlikely. •Customers who receive bankruptcy protection may receive principal forgiveness, interest rate reductions, and/or term extensions.
The information relating to modifications made to borrowers experiencing financial difficulty for the periods indicated are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended June 30, 2024 |
|
|
|
Large |
|
|
Small |
|
|
Total |
|
Dollars in thousands |
|
$ |
|
% |
|
|
$ |
|
% |
|
|
$ |
|
% |
|
Interest rate reduction & term extension |
|
$ |
2,635 |
|
|
0.2 |
% |
|
$ |
461 |
|
|
0.1 |
% |
|
$ |
3,096 |
|
|
0.2 |
% |
Term extension |
|
|
2,117 |
|
|
0.2 |
% |
|
|
438 |
|
|
0.1 |
% |
|
|
2,555 |
|
|
0.1 |
% |
Interest rate reduction |
|
|
651 |
|
|
0.1 |
% |
|
|
179 |
|
|
— |
|
|
|
830 |
|
|
— |
|
Principal forgiveness, interest rate reduction, & term extension |
|
|
162 |
|
|
— |
|
|
|
7 |
|
|
— |
|
|
|
169 |
|
|
— |
|
Total |
|
$ |
5,565 |
|
|
0.4 |
% |
|
$ |
1,085 |
|
|
0.2 |
% |
|
$ |
6,650 |
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended June 30, 2023 |
|
|
|
Large |
|
|
Small |
|
|
Total |
|
Dollars in thousands |
|
$ |
|
% |
|
|
$ |
|
% |
|
|
$ |
|
% |
|
Interest rate reduction & term extension |
|
$ |
3,162 |
|
|
0.3 |
% |
|
|
678 |
|
|
0.2 |
% |
|
$ |
3,840 |
|
|
0.2 |
% |
Principal forgiveness, interest rate reduction, & term extension |
|
|
109 |
|
|
— |
|
|
|
16 |
|
|
— |
|
|
|
125 |
|
|
— |
|
Total |
|
$ |
3,271 |
|
|
0.3 |
% |
|
$ |
694 |
|
|
0.2 |
% |
|
$ |
3,965 |
|
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Six Months Ended June 30, 2024 |
|
|
|
Large |
|
|
Small |
|
|
Total |
|
Dollars in thousands |
|
$ |
|
% |
|
|
$ |
|
% |
|
|
$ |
|
% |
|
Interest rate reduction & term extension |
|
$ |
6,111 |
|
|
0.5 |
% |
|
$ |
1,051 |
|
|
0.2 |
% |
|
$ |
7,162 |
|
|
0.4 |
% |
Term extension |
|
|
2,496 |
|
|
0.2 |
% |
|
|
538 |
|
|
0.1 |
% |
|
|
3,034 |
|
|
0.2 |
% |
Interest rate reduction |
|
|
699 |
|
|
0.1 |
% |
|
|
181 |
|
|
— |
|
|
|
880 |
|
|
— |
|
Principal forgiveness, interest rate reduction, & term extension |
|
|
287 |
|
|
— |
|
|
|
19 |
|
|
— |
|
|
|
306 |
|
|
— |
|
Total |
|
$ |
9,593 |
|
|
0.8 |
% |
|
$ |
1,789 |
|
|
0.4 |
% |
|
$ |
11,382 |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Six Months Ended June 30, 2023 |
|
|
|
Large |
|
|
Small |
|
|
Total |
|
Dollars in thousands |
|
$ |
|
% |
|
|
$ |
|
% |
|
|
$ |
|
% |
|
Interest rate reduction & term extension |
|
$ |
7,706 |
|
|
0.6 |
% |
|
|
1,568 |
|
|
0.4 |
% |
|
$ |
9,274 |
|
|
0.5 |
% |
Principal forgiveness, interest rate reduction, & term extension |
|
|
131 |
|
|
— |
|
|
|
19 |
|
|
— |
|
|
|
150 |
|
|
— |
|
Total |
|
$ |
7,837 |
|
|
0.6 |
% |
|
$ |
1,587 |
|
|
0.4 |
% |
|
$ |
9,424 |
|
|
0.6 |
% |
The financial effects of the modifications made to borrowers experiencing financial difficulty for the periods indicated are as follows:
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
Loan Modification |
|
Product |
|
Financial Effect |
Principal forgiveness |
|
Large loans |
|
Reduced the amortized cost basis of the loans by $0.3 million. |
|
|
Small loans |
|
Reduced the amortized cost basis of the loans by $0.1 million. |
Interest rate reduction |
|
Large loans |
|
Reduced the weighted-average contractual interest rate by 9.6%. |
|
|
Small loans |
|
Reduced the weighted-average contractual interest rate by 17.6%. |
Term extension |
|
Large loans |
|
Added a weighted-average 1.1 years to the life of loans. |
|
|
Small loans |
|
Added a weighted-average 1.0 years to the life of loans. |
|
|
|
|
|
|
|
Three Months Ended June 30, 2023 |
Loan Modification |
|
Product |
|
Financial Effect |
Principal forgiveness |
|
Large loans |
|
Reduced the amortized cost basis of the loans by $0.3 million. |
|
|
Small loans |
|
Reduced the amortized cost basis of the loans by $0.2 million. |
Interest rate reduction |
|
Large loans |
|
Reduced the weighted-average contractual interest rate by 10.0%. |
|
|
Small loans |
|
Reduced the weighted-average contractual interest rate by 14.6%. |
Term extension |
|
Large loans |
|
Added a weighted-average 1.4 years to the life of loans. |
|
|
Small loans |
|
Added a weighted-average 1.3 years to the life of loans. |
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
Loan Modification |
|
Product |
|
Financial Effect |
Principal forgiveness |
|
Large loans |
|
Reduced the amortized cost basis of the loans by $0.6 million. |
|
|
Small loans |
|
Reduced the amortized cost basis of the loans by $0.3 million. |
Interest rate reduction |
|
Large loans |
|
Reduced the weighted-average contractual interest rate by 8.4%. |
|
|
Small loans |
|
Reduced the weighted-average contractual interest rate by 15.5%. |
Term extension |
|
Large loans |
|
Added a weighted-average 1.3 years to the life of loans. |
|
|
Small loans |
|
Added a weighted-average 1.2 years to the life of loans. |
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 |
Loan Modification |
|
Product |
|
Financial Effect |
Principal forgiveness |
|
Large loans |
|
Reduced the amortized cost basis of the loans by $0.5 million. |
|
|
Small loans |
|
Reduced the amortized cost basis of the loans by $0.3 million. |
Interest rate reduction |
|
Large loans |
|
Reduced the weighted-average contractual interest rate by 11.3%. |
|
|
Small loans |
|
Reduced the weighted-average contractual interest rate by 13.5%. |
Term extension |
|
Large loans |
|
Added a weighted-average 1.4 years to the life of loans. |
|
|
Small loans |
|
Added a weighted-average 1.3 years to the life of loans. |
The following table provides the amortized cost basis for modifications made to borrowers experiencing financial difficulty within the previous twelve months that subsequently defaulted. The Company defines payment default as 90 days past due for this disclosure. The respective amounts for each modification for the periods indicated are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended June 30, 2024 |
|
Dollars in thousands |
|
Large |
|
|
Small |
|
|
Total |
|
Interest rate reduction & term extension |
|
$ |
1,141 |
|
|
$ |
235 |
|
|
$ |
1,376 |
|
Term extension |
|
|
45 |
|
|
|
15 |
|
|
|
60 |
|
Principal forgiveness, interest rate reduction, & term extension |
|
|
26 |
|
|
|
— |
|
|
|
26 |
|
Total |
|
$ |
1,212 |
|
|
$ |
250 |
|
|
$ |
1,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended June 30, 2023 |
|
Dollars in thousands |
|
Large |
|
|
Small |
|
|
Total |
|
Interest rate reduction & term extension |
|
$ |
301 |
|
|
$ |
70 |
|
|
$ |
371 |
|
Total |
|
$ |
301 |
|
|
$ |
70 |
|
|
$ |
371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Six Months Ended June 30, 2024 |
|
Dollars in thousands |
|
Large |
|
|
Small |
|
|
Total |
|
Interest rate reduction & term extension |
|
$ |
1,453 |
|
|
$ |
278 |
|
|
$ |
1,731 |
|
Term extension |
|
|
53 |
|
|
|
16 |
|
|
|
69 |
|
Principal forgiveness, interest rate reduction, & term extension |
|
|
27 |
|
|
|
4 |
|
|
|
31 |
|
Total |
|
$ |
1,533 |
|
|
$ |
298 |
|
|
$ |
1,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Six Months Ended June 30, 2023 |
|
Dollars in thousands |
|
Large |
|
|
Small |
|
|
Total |
|
Interest rate reduction & term extension |
|
$ |
301 |
|
|
$ |
70 |
|
|
$ |
371 |
|
Total |
|
$ |
301 |
|
|
$ |
70 |
|
|
$ |
371 |
|
The contractual delinquencies of loans that were modified to borrowers experiencing financial difficulty within the previous twelve months for the period indicated are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2024 |
|
Dollars in thousands |
|
Large |
|
|
Small |
|
|
Total |
|
Current |
|
$ |
12,113 |
|
|
$ |
2,071 |
|
|
$ |
14,184 |
|
30 - 89 days past due |
|
|
2,000 |
|
|
|
387 |
|
|
|
2,387 |
|
90+ days past due |
|
|
1,066 |
|
|
|
253 |
|
|
|
1,319 |
|
Total (1) |
|
$ |
15,179 |
|
|
$ |
2,711 |
|
|
$ |
17,890 |
|
(1) Excludes modified finance receivables that subsequently charged off of $1.5 million and $0.3 million in large and small loans, respectively. The contractual delinquencies of loans that were modified to borrowers experiencing financial difficulty on or after January 1, 2023 for the period indicated are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
Dollars in thousands |
|
Large |
|
|
Small |
|
|
Total |
|
Current |
|
$ |
6,819 |
|
|
$ |
1,314 |
|
|
$ |
8,133 |
|
30 - 89 days past due |
|
|
817 |
|
|
|
229 |
|
|
|
1,046 |
|
90+ days past due |
|
|
201 |
|
|
|
44 |
|
|
|
245 |
|
Total (1) |
|
$ |
7,837 |
|
|
$ |
1,587 |
|
|
$ |
9,424 |
|
(1) Excludes modified finance receivables that subsequently charged off of $39 thousand and $5 thousand in large and small loans, respectively. |