Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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:

	March 31, 2022				December 31, 2021
(in thousands)	Unpaid Principal Balance		Fair Value		Unpaid Principal Balance		Fair Value
Assets
Loans receivable	$	2,353,981	$	2,450,987	$	2,272,864	$	2,386,807
Liabilities
Asset-backed notes	1,654,412		1,593,435		1,654,412		1,651,706

Quantitative Information About Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for Loans Receivable at Fair Value.

	March 31, 2022			December 31, 2021
	Minimum	Maximum	Weighted Average (3)	Minimum	Maximum	Weighted Average
Remaining cumulative charge-offs (1)	6.14%	47.89%	10.37%	6.75%	51.86%	9.60%
Remaining cumulative prepayments (1)	—	41.11%	33.16%	—	44.25%	32.47%
Principal payment rate (1)(2)	—%	—%	16.55%	—%	—%	18.07%
Average life (years)	0.20	1.51	0.85	0.22	1.51	0.86
Discount rate	6.69	8.79	6.76%	6.90	8.35	6.94%

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

(2) Remaining cumulative prepayments are estimated to calculate fair value on the unsecured and secured loan receivables and principal payment rates are estimated on the credit card receivables.

(3) 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 March 31,
(in thousands)	2022		2021
Balance – beginning of period	$	2,386,807	$	1,696,526
Principal disbursements	779,719		309,009
Principal payments from customers (1)	(636,044)		(315,887)
Gross charge-offs	(62,558)		(40,959)
Net increase (decrease) in fair value (1)	(16,937)		21,562
Balance – end of period	$	2,450,987	$	1,670,251

(1) The principal payment from customers shown for the three months ended March 31, 2022 includes $227.6 million of unpaid principal balance of loans sold in the 2022-1 transaction. The net increase (decrease) in fair value shown for the three months ended March 31, 2022 includes $15.9 million related to the cumulative fair value mark on the loans sold in the 2022-1 transaction. For details regarding the 2022-1 transaction, refer to Note 5, Loans Held for Sale and Loans Sold.

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:

	March 31, 2022
	Carrying value		Estimated fair value		Estimated fair value
(in thousands)					Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	109,864	$	109,864	$	109,864	$	—	$	—
Restricted cash	60,694		60,694		60,694		—		—
Liabilities
Accounts payable	4,253		4,253		4,253		—		—
Secured financing (Note 9)	477,000		467,430		—		467,430		—
Acquisition financing (Note 9)	105,605		105,605		—		105,605		—

	December 31, 2021
	Carrying value		Estimated fair value		Estimated fair value
(in thousands)					Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	130,959	$	130,959	$	130,959	$	—	$	—
Restricted cash	62,001		62,001		62,001		—		—
Loans held for sale (Note 5)	491		547		—		—		547
Liabilities
Accounts payable	8,343		8,343		8,343		—		—
Secured financing (Note 9)	398,000		396,081		—		396,081		—
Acquisition financing (Note 9)	116,000		116,000		—		116,000		—