Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value of Loans Receivable and Asset-Backed Notes

The table below compares the fair value of loans receivable and asset-backed notes to their contractual balances for the periods shown:

	September 30, 2021				December 31, 2020
(in thousands)	Unpaid Principal Balance		Fair Value		Unpaid Principal Balance		Fair Value
Assets
Loans receivable	$	1,862,143	$	1,971,375	$	1,639,626	$	1,696,526
Liabilities
Asset-backed notes	1,154,412		1,162,948		1,154,419		1,167,309

Quantitative Information About Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs on its unsecured personal loan portfolio (which is the primary driver of fair value) used for the Company’s Level 3 fair value measurements:

	September 30, 2021			December 31, 2020
	Minimum	Maximum	Weighted Average (2)	Minimum	Maximum	Weighted Average
Remaining cumulative charge-offs (1)	5.70%	66.03%	7.53%	7.83%	61.26%	10.03%
Remaining cumulative prepayments (1)	—	53.64%	40.30%	—	38.92%	31.11%
Average life (years)	0.15	1.28	0.76	0.17	1.29	0.80
Discount rate	—	—	6.52%	—	—	6.85%

(1) Figure disclosed as a percentage of outstanding principal balance.

(2) Unobservable inputs were weighted by outstanding principal balance, which are grouped by risk (type of customer, original loan maturity terms).

Reconciliation of Loans Receivable at Fair Value Using Significant Unobservable Inputs

The table below presents a reconciliation of loans receivable at fair value on a recurring basis using significant unobservable inputs:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2021		2020		2021		2020
Balance – beginning of period	$	1,726,914	$	1,635,684	$	1,696,526	$	1,882,088
Adjustment upon adoption of ASU 2019-05	—		—		—		43,323
Principal disbursements	578,084		283,894		1,266,556		804,767
Principal payments from customers	(317,489)		(305,883)		(941,747)		(927,175)
Gross charge-offs	(29,096)		(48,135)		(102,293)		(145,373)
Net increase (decrease) in fair value	12,962		39,828		52,333		(52,242)
Balance – end of period	$	1,971,375	$	1,605,388	$	1,971,375	$	1,605,388

Carry Value and Estimated Fair Values of Financial Assets and Liabilities

The following table presents the carrying value and estimated fair values of financial assets and liabilities disclosed but not carried at fair value and the level within the fair value hierarchy:

	September 30, 2021
	Carrying value		Estimated fair value		Estimated fair value
(in thousands)					Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	168,407	$	168,407	$	168,407	$	—	$	—
Restricted cash	55,348		55,348		55,348		—		—
Loans held for sale (Note 5)	2,602		2,602		—		—		2,602
Liabilities
Accounts payable	5,451		5,451		5,451		—		—
Secured financing (Note 7)	529,002		528,458		—		528,458		—

	December 31, 2020
	Carrying value		Estimated fair value		Estimated fair value
(in thousands)					Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	136,187	$	136,187	$	136,187	$	—	$	—
Restricted cash	32,403		32,403		32,403		—		—
Loans held for sale (Note 5)	1,158		1,158		—		—		1,158
Liabilities
Accounts payable	1,819		1,819		1,819		—		—
Secured financing (Note 7)	246,994		245,077		—		245,077		—