XML 24 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Finance Receivables, Credit Quality Information, and Allowance for Credit Losses
9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
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:

 

In thousands

 

September 30, 2020

 

 

December 31, 2019

 

Small loans

 

$

382,785

 

 

$

467,613

 

Large loans

 

 

655,932

 

 

 

632,068

 

Automobile loans

 

 

4,892

 

 

 

9,640

 

Retail loans

 

 

15,945

 

 

 

24,083

 

Net finance receivables

 

$

1,059,554

 

 

$

1,133,404

 

 

Net finance receivables included net deferred origination fees of $11.2 million and $13.4 million as of September 30, 2020 and December 31, 2019, respectively.

Effective January 1, 2020, with the adoption of CECL accounting, the Company reclassified unearned insurance premiums out of the net finance receivables line item to align its consolidated balance sheet presentation with the amortized cost definition in the new accounting standard.

The tables below illustrate the impacts of this reclassification to the Company’s previously reported balance sheet presentation of receivables and other key metrics:

 

 

 

Quarterly Trend – As Reported (Pre-CECL Adoption)

 

In thousands

 

3/31/2019

 

 

6/30/2019

 

 

9/30/2019

 

 

12/31/2019

 

Gross finance receivables

 

$

1,204,495

 

 

$

1,300,043

 

 

$

1,404,172

 

 

$

1,500,962

 

Unearned finance charges

 

 

(273,651

)

 

 

(305,063

)

 

 

(337,086

)

 

 

(367,558

)

Unearned insurance premiums

 

 

(18,594

)

 

 

(21,546

)

 

 

(24,900

)

 

 

(28,591

)

Finance receivables

 

 

912,250

 

 

 

973,434

 

 

 

1,042,186

 

 

 

1,104,813

 

Allowance for credit losses

 

 

(56,400

)

 

 

(57,200

)

 

 

(60,900

)

 

 

(62,200

)

Net finance receivables

 

$

855,850

 

 

$

916,234

 

 

$

981,286

 

 

$

1,042,613

 

Average finance receivables

 

$

924,948

 

 

$

934,373

 

 

$

1,010,515

 

 

$

1,071,265

 

As a % of finance receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

6.2

%

 

 

5.9

%

 

 

5.8

%

 

 

5.6

%

30+ day contractual delinquency

 

 

7.0

%

 

 

6.4

%

 

 

6.6

%

 

 

7.2

%

As a % of average finance receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fee yield (annualized)

 

 

32.1

%

 

 

32.5

%

 

 

32.9

%

 

 

32.8

%

Operating expense ratio (annualized)

 

 

16.5

%

 

 

16.2

%

 

 

15.9

%

 

 

15.3

%

Net credit loss ratio (annualized)

 

 

10.9

%

 

 

10.7

%

 

 

8.2

%

 

 

9.2

%

 

 

 

Quarterly Trend – Amortized Cost Basis (Post-CECL Adoption)

 

In thousands

 

3/31/2019

 

 

6/30/2019

 

 

9/30/2019

 

 

12/31/2019

 

Net finance receivables

 

$

930,844

 

 

$

994,980

 

 

$

1,067,086

 

 

$

1,133,404

 

Unearned insurance premiums

 

 

(18,594

)

 

 

(21,546

)

 

 

(24,900

)

 

 

(28,591

)

Allowance for credit losses

 

 

(56,400

)

 

 

(57,200

)

 

 

(60,900

)

 

 

(62,200

)

Net finance receivables, less unearned insurance

   premiums and allowance for credit losses

 

$

855,850

 

 

$

916,234

 

 

$

981,286

 

 

$

1,042,613

 

Average net finance receivables

 

$

944,763

 

 

$

954,940

 

 

$

1,033,939

 

 

$

1,098,410

 

As a % of net finance receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

6.1

%

 

 

5.7

%

 

 

5.7

%

 

 

5.5

%

30+ day contractual delinquency

 

 

6.9

%

 

 

6.3

%

 

 

6.5

%

 

 

7.0

%

As a % of average net finance receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fee yield (annualized)

 

 

31.5

%

 

 

31.8

%

 

 

32.1

%

 

 

32.0

%

Operating expense ratio (annualized)

 

 

16.2

%

 

 

15.8

%

 

 

15.5

%

 

 

14.9

%

Net credit loss ratio (annualized)

 

 

10.7

%

 

 

10.4

%

 

 

8.1

%

 

 

9.0

%

 

 

 

Quarterly Trend – Reclassification Change

 

In thousands

 

3/31/2019

 

 

6/30/2019

 

 

9/30/2019

 

 

12/31/2019

 

Net finance receivables

 

$

18,594

 

 

$

21,546

 

 

$

24,900

 

 

$

28,591

 

Average net finance receivables

 

$

19,815

 

 

$

20,567

 

 

$

23,424

 

 

$

27,145

 

As a % of net finance receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(0.1

)%

 

 

(0.2

)%

 

 

(0.1

)%

 

 

(0.1

)%

30+ day contractual delinquency

 

 

(0.1

)%

 

 

(0.1

)%

 

 

(0.1

)%

 

 

(0.2

)%

As a % of average net finance receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fee yield (annualized)

 

 

(0.6

)%

 

 

(0.7

)%

 

 

(0.8

)%

 

 

(0.8

)%

Operating expense ratio (annualized)

 

 

(0.3

)%

 

 

(0.4

)%

 

 

(0.4

)%

 

 

(0.4

)%

Net credit loss ratio (annualized)

 

 

(0.2

)%

 

 

(0.3

)%

 

 

(0.1

)%

 

 

(0.2

)%

 

The credit quality of the Company’s finance receivable portfolio is the result of the Company’s ability to enforce sound underwriting standards, maintain diligent servicing of the portfolio, and respond to changing economic conditions as it 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 the FICO scores. The first FICO band category includes the lowest FICO scores, while the sixth FICO band category includes the highest FICO scores.

Net finance receivables by product, FICO band, and origination year as of September 30, 2020 are as follows:

 

 

 

Net Finance Receivables by Origination Year

 

In thousands

 

2020 (1)

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Total Net Finance Receivables

 

Small Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FICO Band

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

$

58,932

 

 

$

28,780

 

 

$

3,316

 

 

$

368

 

 

$

50

 

 

$

18

 

 

$

91,464

 

2

 

 

29,746

 

 

 

13,327

 

 

 

1,068

 

 

 

73

 

 

 

8

 

 

 

3

 

 

 

44,225

 

3

 

 

30,537

 

 

 

14,142

 

 

 

1,156

 

 

 

66

 

 

 

3

 

 

 

3

 

 

 

45,907

 

4

 

 

32,863

 

 

 

15,107

 

 

 

1,124

 

 

 

43

 

 

 

4

 

 

 

1

 

 

 

49,142

 

5

 

 

34,514

 

 

 

17,702

 

 

 

1,125

 

 

 

32

 

 

 

4

 

 

 

 

 

 

53,377

 

6

 

 

61,957

 

 

 

34,781

 

 

 

1,886

 

 

 

44

 

 

 

2

 

 

 

 

 

 

98,670

 

Total small loans

 

$

248,549

 

 

$

123,839

 

 

$

9,675

 

 

$

626

 

 

$

71

 

 

$

25

 

 

$

382,785

 

Large Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FICO Band

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

$

37,946

 

 

$

33,147

 

 

$

9,527

 

 

$

3,859

 

 

$

842

 

 

$

396

 

 

$

85,717

 

2

 

 

25,688

 

 

 

19,228

 

 

 

3,241

 

 

 

751

 

 

 

129

 

 

 

111

 

 

 

49,148

 

3

 

 

50,822

 

 

 

45,266

 

 

 

8,623

 

 

 

1,635

 

 

 

84

 

 

 

71

 

 

 

106,501

 

4

 

 

58,523

 

 

 

54,544

 

 

 

9,202

 

 

 

1,882

 

 

 

84

 

 

 

24

 

 

 

124,259

 

5

 

 

53,177

 

 

 

48,824

 

 

 

9,377

 

 

 

1,950

 

 

 

39

 

 

 

16

 

 

 

113,383

 

6

 

 

84,260

 

 

 

74,467

 

 

 

15,424

 

 

 

2,676

 

 

 

80

 

 

 

17

 

 

 

176,924

 

Total large loans

 

$

310,416

 

 

$

275,476

 

 

$

55,394

 

 

$

12,753

 

 

$

1,258

 

 

$

635

 

 

$

655,932

 

Automobile Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FICO Band

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

$

 

 

$

 

 

$

 

 

$

1,122

 

 

$

801

 

 

$

305

 

 

$

2,228

 

2

 

 

 

 

 

 

 

 

 

 

 

438

 

 

 

357

 

 

 

73

 

 

 

868

 

3

 

 

 

 

 

 

 

 

 

 

 

554

 

 

 

307

 

 

 

41

 

 

 

902

 

4

 

 

 

 

 

 

 

 

 

 

 

256

 

 

 

126

 

 

 

43

 

 

 

425

 

5

 

 

 

 

 

 

 

 

 

 

 

80

 

 

 

129

 

 

 

14

 

 

 

223

 

6

 

 

 

 

 

 

 

 

 

 

 

145

 

 

 

99

 

 

 

2

 

 

 

246

 

Total automobile loans

 

$

 

 

$

 

 

$

 

 

$

2,595

 

 

$

1,819

 

 

$

478

 

 

$

4,892

 

Retail Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FICO Band

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

$

548

 

 

$

1,192

 

 

$

365

 

 

$

42

 

 

$

3

 

 

$

2

 

 

$

2,152

 

2

 

 

352

 

 

 

911

 

 

 

328

 

 

 

38

 

 

 

1

 

 

 

1

 

 

 

1,631

 

3

 

 

696

 

 

 

937

 

 

 

389

 

 

 

44

 

 

 

4

 

 

 

2

 

 

 

2,072

 

4

 

 

1,393

 

 

 

1,669

 

 

 

760

 

 

 

92

 

 

 

1

 

 

 

2

 

 

 

3,917

 

5

 

 

968

 

 

 

1,321

 

 

 

601

 

 

 

96

 

 

 

1

 

 

 

1

 

 

 

2,988

 

6

 

 

1,101

 

 

 

1,357

 

 

 

633

 

 

 

90

 

 

 

2

 

 

 

2

 

 

 

3,185

 

Total retail loans

 

$

5,058

 

 

$

7,387

 

 

$

3,076

 

 

$

402

 

 

$

12

 

 

$

10

 

 

$

15,945

 

Total Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FICO Band

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

$

97,426

 

 

$

63,119

 

 

$

13,208

 

 

$

5,391

 

 

$

1,696

 

 

$

721

 

 

$

181,561

 

2

 

 

55,786

 

 

 

33,466

 

 

 

4,637

 

 

 

1,300

 

 

 

495

 

 

 

188

 

 

 

95,872

 

3

 

 

82,055

 

 

 

60,345

 

 

 

10,168

 

 

 

2,299

 

 

 

398

 

 

 

117

 

 

 

155,382

 

4

 

 

92,779

 

 

 

71,320

 

 

 

11,086

 

 

 

2,273

 

 

 

215

 

 

 

70

 

 

 

177,743

 

5

 

 

88,659

 

 

 

67,847

 

 

 

11,103

 

 

 

2,158

 

 

 

173

 

 

 

31

 

 

 

169,971

 

6

 

 

147,318

 

 

 

110,605

 

 

 

17,943

 

 

 

2,955

 

 

 

183

 

 

 

21

 

 

 

279,025

 

Total loans

 

$

564,023

 

 

$

406,702

 

 

$

68,145

 

 

$

16,376

 

 

$

3,160

 

 

$

1,148

 

 

$

1,059,554

 

 

(1)

Includes loans originated during the nine months ended September 30, 2020.

The contractual delinquency of the net finance receivables portfolio by product and aging for the periods indicated are as follows:

 

 

 

September 30, 2020

 

 

 

Small

 

 

Large

 

 

Automobile

 

 

Retail

 

 

Total

 

In thousands

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

Current

 

$

329,099

 

 

 

86.0

%

 

$

584,352

 

 

 

89.1

%

 

$

3,630

 

 

 

74.2

%

 

$

12,697

 

 

 

79.6

%

 

$

929,778

 

 

 

87.8

%

1 to 29 days past due

 

 

30,782

 

 

 

8.0

%

 

 

46,091

 

 

 

7.0

%

 

 

925

 

 

 

18.9

%

 

 

2,040

 

 

 

12.8

%

 

 

79,838

 

 

 

7.5

%

Delinquent accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 to 59 days

 

 

7,064

 

 

 

1.8

%

 

 

8,572

 

 

 

1.3

%

 

 

112

 

 

 

2.3

%

 

 

357

 

 

 

2.3

%

 

 

16,105

 

 

 

1.5

%

60 to 89 days

 

 

4,965

 

 

 

1.3

%

 

 

5,702

 

 

 

0.9

%

 

 

90

 

 

 

1.8

%

 

 

257

 

 

 

1.6

%

 

 

11,014

 

 

 

1.0

%

90 to 119 days

 

 

3,730

 

 

 

1.0

%

 

 

4,381

 

 

 

0.7

%

 

 

55

 

 

 

1.2

%

 

 

209

 

 

 

1.3

%

 

 

8,375

 

 

 

0.8

%

120 to 149 days

 

 

3,793

 

 

 

1.0

%

 

 

3,926

 

 

 

0.6

%

 

 

60

 

 

 

1.2

%

 

 

188

 

 

 

1.2

%

 

 

7,967

 

 

 

0.8

%

150 to 179 days

 

 

3,352

 

 

 

0.9

%

 

 

2,908

 

 

 

0.4

%

 

 

20

 

 

 

0.4

%

 

 

197

 

 

 

1.2

%

 

 

6,477

 

 

 

0.6

%

Total delinquency

 

$

22,904

 

 

 

6.0

%

 

$

25,489

 

 

 

3.9

%

 

$

337

 

 

 

6.9

%

 

$

1,208

 

 

 

7.6

%

 

$

49,938

 

 

 

4.7

%

Total net finance receivables

 

$

382,785

 

 

 

100.0

%

 

$

655,932

 

 

 

100.0

%

 

$

4,892

 

 

 

100.0

%

 

$

15,945

 

 

 

100.0

%

 

$

1,059,554

 

 

 

100.0

%

Net finance receivables in nonaccrual status

 

$

12,417

 

 

 

3.2

%

 

$

13,313

 

 

 

2.0

%

 

$

260

 

 

 

5.3

%

 

$

715

 

 

 

4.5

%

 

$

26,705

 

 

 

2.5

%

 

 

 

December 31, 2019

 

 

 

Small

 

 

Large

 

 

Automobile

 

 

Retail

 

 

Total

 

In thousands

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

 

$

 

 

%

 

Current

 

$

377,775

 

 

 

80.7

%

 

$

546,415

 

 

 

86.4

%

 

$

6,921

 

 

 

71.8

%

 

$

18,093

 

 

 

75.1

%

 

$

949,204

 

 

 

83.8

%

1 to 29 days past due

 

 

47,463

 

 

 

10.2

%

 

 

51,732

 

 

 

8.2

%

 

 

1,964

 

 

 

20.4

%

 

 

3,531

 

 

 

14.7

%

 

 

104,690

 

 

 

9.2

%

Delinquent accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 to 59 days

 

 

12,702

 

 

 

2.8

%

 

 

11,480

 

 

 

1.8

%

 

 

241

 

 

 

2.5

%

 

 

853

 

 

 

3.6

%

 

 

25,276

 

 

 

2.2

%

60 to 89 days

 

 

9,916

 

 

 

2.1

%

 

 

8,192

 

 

 

1.3

%

 

 

110

 

 

 

1.1

%

 

 

563

 

 

 

2.3

%

 

 

18,781

 

 

 

1.7

%

90 to 119 days

 

 

7,518

 

 

 

1.6

%

 

 

5,894

 

 

 

1.0

%

 

 

129

 

 

 

1.4

%

 

 

375

 

 

 

1.5

%

 

 

13,916

 

 

 

1.2

%

120 to 149 days

 

 

6,584

 

 

 

1.4

%

 

 

4,588

 

 

 

0.7

%

 

 

127

 

 

 

1.3

%

 

 

357

 

 

 

1.5

%

 

 

11,656

 

 

 

1.0

%

150 to 179 days

 

 

5,655

 

 

 

1.2

%

 

 

3,767

 

 

 

0.6

%

 

 

148

 

 

 

1.5

%

 

 

311

 

 

 

1.3

%

 

 

9,881

 

 

 

0.9

%

Total delinquency

 

$

42,375

 

 

 

9.1

%

 

$

33,921

 

 

 

5.4

%

 

$

755

 

 

 

7.8

%

 

$

2,459

 

 

 

10.2

%

 

$

79,510

 

 

 

7.0

%

Total net finance receivables

 

$

467,613

 

 

 

100.0

%

 

$

632,068

 

 

 

100.0

%

 

$

9,640

 

 

 

100.0

%

 

$

24,083

 

 

 

100.0

%

 

$

1,133,404

 

 

 

100.0

%

Net finance receivables in nonaccrual status

 

$

22,773

 

 

 

4.9

%

 

$

17,924

 

 

 

2.8

%

 

$

591

 

 

 

6.1

%

 

$

1,186

 

 

 

4.9

%

 

$

42,474

 

 

 

3.7

%

 

The following table illustrates the impacts to the allowance for credit losses for the periods indicated:

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

In thousands

 

January 1, 2020

 

 

March 31, 2020

 

 

June 30, 2020

 

 

September 30, 2020

 

 

September 30, 2020

 

Beginning balance

 

$

62,200

 

 

$

122,300

 

 

$

142,400

 

 

$

142,000

 

 

$

62,200

 

Impact of CECL adoption

 

 

60,100

 

 

 

 

 

 

 

 

 

 

 

 

60,100

 

COVID reserve build / (release)

 

 

 

 

 

23,900

 

 

 

9,500

 

 

 

(1,500

)

 

 

31,900

 

Change due to portfolio growth / (liquidation)

 

 

 

 

 

(3,800

)

 

 

(9,900

)

 

 

3,500

 

 

 

(10,200

)

Ending balance

 

$

122,300

 

 

$

142,400

 

 

$

142,000

 

 

$

144,000

 

 

$

144,000

 

Allowance for credit losses as a percentage of net finance receivables

 

 

10.8

%

 

 

12.9

%

 

 

13.9

%

 

 

13.6

%

 

 

13.6

%

 

The allowance for credit losses was $62.2 million, or 5.5% of net finance receivables, as of December 31, 2019. The Company adopted CECL accounting on January 1, 2020, and increased the allowance for credit losses to $122.3 million, or 10.8% of net finance receivables.

In March 2020, the spread of COVID-19 was declared a pandemic by the World Health Organization. Subsequently, the pandemic was declared a national emergency in the United States and the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law. The CARES Act provided a variety of financial aid to a meaningful portion of the Company’s customer base.

During the nine months ended September 30, 2020, the Company increased the allowance for credit losses by $21.7 million, which included a $31.9 million reserve related to the economic impact of COVID-19, offset by a base reserve release of $10.2 million primarily related to portfolio liquidation. The $2.0 million increase in the allowance for credit losses during the three months ended September 30, 2020 included a macroeconomic reserve release of $1.5 million, offset by a base reserve build of $3.5 million primarily related to portfolio growth. The ending balance of the allowance for credit losses as a percentage of net finance receivables was 13.6% as of September 30, 2020. The Company ran several macroeconomic stress scenarios, and its final forecast assumed elevated unemployment in 2020 with a gradual decline to 9% by the end of 2021. The severity of the Company’s macroeconomic assumptions remained relatively consistent with its model as of June 30, 2020. The macroeconomic scenario was adjusted for the potential benefits of internal borrower assistance programs.

The following is a reconciliation of the allowance for credit losses by product for the periods indicated:

 

In thousands

 

Small

 

 

Large

 

 

Automobile

 

 

Retail

 

 

Total

 

Beginning balance at July 1, 2020

 

$

58,205

 

 

$

79,305

 

 

$

1,160

 

 

$

3,330

 

 

$

142,000

 

Provision for credit losses

 

 

9,662

 

 

 

12,507

 

 

 

(102

)

 

 

22

 

 

 

22,089

 

Credit losses

 

 

(11,549

)

 

 

(9,331

)

 

 

(85

)

 

 

(409

)

 

 

(21,374

)

Recoveries

 

 

698

 

 

 

521

 

 

 

22

 

 

 

44

 

 

 

1,285

 

Ending balance at September 30, 2020

 

$

57,016

 

 

$

83,002

 

 

$

995

 

 

$

2,987

 

 

$

144,000

 

Net finance receivables at September 30, 2020

 

$

382,785

 

 

$

655,932

 

 

$

4,892

 

 

$

15,945

 

 

$

1,059,554

 

Allowance as percentage of net finance receivables at September 30, 2020

 

 

14.9

%

 

 

12.7

%

 

 

20.3

%

 

 

18.7

%

 

 

13.6

%

 

In thousands

 

Small

 

 

Large

 

 

Automobile

 

 

Retail

 

 

Total

 

Beginning balance at July 1, 2019

 

$

29,134

 

 

$

25,054

 

 

$

1,093

 

 

$

1,919

 

 

$

57,200

 

Provision for credit losses

 

 

13,192

 

 

 

10,518

 

 

 

164

 

 

 

641

 

 

 

24,515

 

Credit losses

 

 

(12,465

)

 

 

(8,386

)

 

 

(361

)

 

 

(722

)

 

 

(21,934

)

Recoveries

 

 

628

 

 

 

422

 

 

 

35

 

 

 

34

 

 

 

1,119

 

Ending balance at September 30, 2019

 

$

30,489

 

 

$

27,608

 

 

$

931

 

 

$

1,872

 

 

$

60,900

 

Net finance receivables at September 30, 2019

 

$

453,969

 

 

$

574,988

 

 

$

12,144

 

 

$

25,985

 

 

$

1,067,086

 

Allowance as percentage of net finance receivables at September 30, 2019

 

 

6.7

%

 

 

4.8

%

 

 

7.7

%

 

 

7.2

%

 

 

5.7

%

 

In thousands

 

Small

 

 

Large

 

 

Automobile

 

 

Retail

 

 

Total

 

Beginning balance at January 1, 2020

 

$

30,588

 

 

$

29,148

 

 

$

820

 

 

$

1,644

 

 

$

62,200

 

Impact of CECL adoption

 

 

24,185

 

 

 

33,550

 

 

 

599

 

 

 

1,766

 

 

 

60,100

 

Provision for credit losses

 

 

45,729

 

 

 

51,774

 

 

 

10

 

 

 

1,597

 

 

 

99,110

 

Credit losses

 

 

(45,497

)

 

 

(32,986

)

 

 

(511

)

 

 

(2,134

)

 

 

(81,128

)

Recoveries

 

 

2,011

 

 

 

1,516

 

 

 

77

 

 

 

114

 

 

 

3,718

 

Ending balance at September 30, 2020

 

$

57,016

 

 

$

83,002

 

 

$

995

 

 

$

2,987

 

 

$

144,000

 

Net finance receivables at September 30, 2020

 

$

382,785

 

 

$

655,932

 

 

$

4,892

 

 

$

15,945

 

 

$

1,059,554

 

Allowance as percentage of net finance receivables at September 30, 2020

 

 

14.9

%

 

 

12.7

%

 

 

20.3

%

 

 

18.7

%

 

 

13.6

%

 

In thousands

 

Small

 

 

Large

 

 

Automobile

 

 

Retail

 

 

Total

 

Beginning balance at January 1, 2019

 

$

30,759

 

 

$

23,702

 

 

$

1,893

 

 

$

1,946

 

 

$

58,300

 

Provision for credit losses

 

 

40,883

 

 

 

29,958

 

 

 

404

 

 

 

2,327

 

 

 

73,572

 

Credit losses

 

 

(42,946

)

 

 

(27,273

)

 

 

(1,579

)

 

 

(2,514

)

 

 

(74,312

)

Recoveries

 

 

1,793

 

 

 

1,221

 

 

 

213

 

 

 

113

 

 

 

3,340

 

Ending balance at September 30, 2019

 

$

30,489

 

 

$

27,608

 

 

$

931

 

 

$

1,872

 

 

$

60,900

 

Net finance receivables at September 30, 2019

 

$

453,969

 

 

$

574,988

 

 

$

12,144

 

 

$

25,985

 

 

$

1,067,086

 

Allowance as percentage of net finance receivables at September 30, 2019

 

 

6.7

%

 

 

4.8

%

 

 

7.7

%

 

 

7.2

%

 

 

5.7

%