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Loans and Finance Receivables, Credit Quality Information and Allowances and Liabilities for Estimated Losses on Loans and Finance Receivables (Tables)
3 Months Ended
Mar. 31, 2019
Receivables [Abstract]  
Schedule of Revenue Generated from Loans and Finance Receivables

Revenue generated from the Company’s loans and finance receivables for the three months ended March 31, 2019 and 2018 was as follows (dollars in thousands):

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2019

 

 

2018

 

Short-term loans

 

$

46,325

 

 

$

53,375

 

Line of credit accounts

 

 

104,483

 

 

 

78,309

 

Installment loans and RPAs

 

 

142,062

 

 

 

122,108

 

Total loans and finance receivables revenue

 

 

292,870

 

 

 

253,792

 

Other

 

 

313

 

 

 

506

 

Total revenue

 

$

293,183

 

 

$

254,298

 

 

Components of Company-Owned Loans and Finance Receivables

The components of Company-owned loans and finance receivables at March 31, 2019 and 2018 and December 31, 2018 were as follows (dollars in thousands):

 

 

 

As of March 31, 2019

 

 

 

Short-term

 

 

Line of Credit

 

 

Installment Loans and

 

 

 

 

 

 

 

Loans

 

 

Accounts

 

 

RPAs

 

 

Total

 

Current receivables

 

$

27,872

 

 

$

207,395

 

 

$

636,278

 

 

$

871,545

 

Delinquent receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquent payment amounts(1)

 

 

 

 

 

8,500

 

 

 

2,600

 

 

 

11,100

 

Receivables on non-accrual status

 

 

21,276

 

 

 

3,084

 

 

 

50,252

 

 

 

74,612

 

Total delinquent receivables

 

 

21,276

 

 

 

11,584

 

 

 

52,852

 

 

 

85,712

 

Total loans and finance receivables, gross

 

 

49,148

 

 

 

218,979

 

 

 

689,130

 

 

 

957,257

 

Less: Allowance for losses

 

 

(15,418

)

 

 

(41,362

)

 

 

(84,621

)

 

 

(141,401

)

Loans and finance receivables, net

 

$

33,730

 

 

$

177,617

 

 

$

604,509

 

 

$

815,856

 

 

 

 

As of March 31, 2018

 

 

 

Short-term

 

 

Line of Credit

 

 

Installment Loans and

 

 

 

 

 

 

 

Loans

 

 

Accounts

 

 

RPAs

 

 

Total

 

Current receivables

 

$

39,339

 

 

$

152,114

 

 

$

543,435

 

 

$

734,888

 

Delinquent receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquent payment amounts(1)

 

 

 

 

 

6,624

 

 

 

2,143

 

 

 

8,767

 

Receivables on non-accrual status

 

 

26,519

 

 

 

2,185

 

 

 

45,000

 

 

 

73,704

 

Total delinquent receivables

 

 

26,519

 

 

 

8,809

 

 

 

47,143

 

 

 

82,471

 

Total loans and finance receivables, gross

 

 

65,858

 

 

 

160,923

 

 

 

590,578

 

 

 

817,359

 

Less: Allowance for losses

 

 

(19,136

)

 

 

(27,120

)

 

 

(68,027

)

 

 

(114,283

)

Loans and finance receivables, net

 

$

46,722

 

 

$

133,803

 

 

$

522,551

 

 

$

703,076

 

 

 

 

As of December 31, 2018

 

 

 

Short-term

 

 

Line of Credit

 

 

Installment Loans and

 

 

 

 

 

 

 

Loans

 

 

Accounts

 

 

RPAs

 

 

Total

 

Current receivables

 

$

37,558

 

 

$

213,896

 

 

$

672,538

 

 

$

923,992

 

Delinquent receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delinquent payment amounts(1)

 

 

 

 

 

10,783

 

 

 

2,696

 

 

 

13,479

 

Receivables on non-accrual status

 

 

30,167

 

 

 

2,884

 

 

 

52,732

 

 

 

85,783

 

Total delinquent receivables

 

 

30,167

 

 

 

13,667

 

 

 

55,428

 

 

 

99,262

 

Total loans and finance receivables, gross

 

 

67,725

 

 

 

227,563

 

 

 

727,966

 

 

 

1,023,254

 

Less: Allowance for losses

 

 

(21,420

)

 

 

(51,008

)

 

 

(90,880

)

 

 

(163,308

)

Loans and finance receivables, net

 

$

46,305

 

 

$

176,555

 

 

$

637,086

 

 

$

859,946

 

 

(1)

Represents the delinquent portion of installment loans and line of credit account balances for customers that have only missed one payment and RPA customers who have not delivered agreed upon receivables. See “Current and Delinquent Loans and Finance Receivables” above for additional information.

Schedule of Changes in Allowance for Losses

Changes in the allowance for losses for the Company-owned loans and finance receivables and the liability for losses on the Company’s guarantees of third-party lender-owned loans during the three months ended March 31, 2019 and 2018 were as follows (dollars in thousands):

 

 

 

Three Months Ended March 31, 2019

 

 

 

Short-term

 

 

Line of Credit

 

 

Installment Loans and

 

 

 

 

 

 

 

Loans

 

 

Accounts

 

 

RPAs

 

 

Total

 

Allowance for losses for Company-owned loans and finance receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

21,420

 

 

$

51,008

 

 

$

90,880

 

 

$

163,308

 

Cost of revenue

 

 

17,948

 

 

 

37,739

 

 

 

84,260

 

 

 

139,947

 

Charge-offs

 

 

(29,476

)

 

 

(51,222

)

 

 

(111,840

)

 

 

(192,538

)

Recoveries

 

 

5,375

 

 

 

3,837

 

 

 

21,076

 

 

 

30,288

 

Effect of foreign currency translation

 

 

151

 

 

 

 

 

 

245

 

 

 

396

 

Balance at end of period

 

$

15,418

 

 

$

41,362

 

 

$

84,621

 

 

$

141,401

 

Liability for third-party lender-owned loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

1,964

 

 

$

 

 

$

202

 

 

$

2,166

 

Decrease in liability

 

 

(858

)

 

 

 

 

 

(44

)

 

 

(902

)

Balance at end of period

 

$

1,106

 

 

$

 

 

$

158

 

 

$

1,264

 

 

 

 

Three Months Ended March 31, 2018

 

 

 

Short-term

 

 

Line of Credit

 

 

Installment Loans and

 

 

 

 

 

 

 

Loans

 

 

Accounts

 

 

RPAs

 

 

Total

 

Allowance for losses for Company-owned loans and finance receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

19,917

 

 

$

31,148

 

 

$

71,979

 

 

$

123,044

 

Cost of revenue

 

 

21,167

 

 

 

25,383

 

 

 

62,851

 

 

 

109,401

 

Charge-offs

 

 

(28,485

)

 

 

(32,807

)

 

 

(81,206

)

 

 

(142,498

)

Recoveries

 

 

6,272

 

 

 

3,396

 

 

 

14,125

 

 

 

23,793

 

Effect of foreign currency translation

 

 

265

 

 

 

 

 

 

278

 

 

 

543

 

Balance at end of period

 

$

19,136

 

 

$

27,120

 

 

$

68,027

 

 

$

114,283

 

Liability for third-party lender-owned loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

2,105

 

 

$

 

 

$

153

 

 

$

2,258

 

Increase in liability

 

 

(844

)

 

 

 

 

 

(4

)

 

 

(848

)

Balance at end of period

 

$

1,261

 

 

$

 

 

$

149

 

 

$

1,410