Loan renewals are accounted for in accordance with the applicable guidance in ASC Topic 310-20 Nonrefundable Fees and Other Costs. Loan renewals are a product the Company offers to existing customers that allows them to borrow additional funds from the Company. In evaluating a loan for renewal, in addition to our standard underwriting requirements, we may take into consideration the customer’s prior payment performance with us, which we believe to be an indicator of the customer’s future credit performance. If the terms of the new loan resulting from a loan renewal (other than a troubled debt restructuring) are at least as favorable to us as the terms for comparable loans to other customers with similar collection risks who are not renewing a loan, the renewal is accounted for as a new loan. The criteria is met if the new loan's effective yield is at least equal to the effective yield for such comparable loans and the modification of the original loan is more than minor. A modification of a loan is more than minor if the present value of the cash flows under the terms of the renewal is at least 10 percent different from the present value of the remaining cash flows under the terms of the original loan. Accordingly, when a renewal is generated, the original loan(s) are extinguished along with the associated unearned finance charges and a new loan is originated. Substantially all renewals include a non-cash component that represents the exchange of the original principal balance for the new principal balance and a cash component for the net proceeds distributed to the customer for the additional amount borrowed. The cash component is presented as outflows from investing activities and the non-cash component is presented as a non-cash investing activity.

Cash, unearned finance charges, origination fees, discounts, premiums, deferred fees, and, in the instance of a loan renewal, the net payoff of the of the renewed loan are included in the loan origination amount. The cash component of the loan origination is included in the Statement of Cash Flows in the Cash Flows from Investing Activities as Loans Originated or Purchased.


	2023		2022		2021

Loans Originated/acquired per Business Section	$	1,228	$	1,158	$	1,152
Non-Cash Reconciling items:
Other Consumer (Live Check and Premier) Renewed Loans Payoff	319		314		332
Other non-cash activity: unearned finance charges, origination fees, discounts, premiums, and deferred fees	266		241		231
Loans originated or purchased per Consolidated Statements of Cash Flows	$	643	$	603	$	589

The allowance for credit losses is based on Management's evaluation of the inherent risks and changes in the composition of the Company's loan portfolio. When the Company implemented ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) loans outstanding with similar risk characteristics were collectively evaluated in pools utilizing an open pool method, whereby a historical loss rate was calculated and applied to the balance of loans outstanding in the portfolio at each reporting period. This historical loss rate was then adjusted by a macroeconomic forecast and other qualitative factors, as appropriate, to fully reflect the expected losses in the loan portfolio.

For the period ending December 31, 2023 we utilized a Probability of Default (“PD”) / Loss Given Default (“LGD”) technique to estimate the allowance for credit losses, in which the estimated loss is equal to the product of PD and LGD. We engaged a major rating service provider to assist with estimating the instances of loss (PDs) and the average severity of losses (LGDs) using the characteristics of our loan portfolio, along with incorporating a reasonable and supportable forecast which is utilized to support the adjustments to historical loss experience of loans with similar credit risk. Key segmentation in the technique is origination vintage, remaining contractual term, risk score and state of origination. The technique produces a variety of alternative economic scenarios. We consider how macroeconomic and/or other factors might impact expected credit losses over the remaining maturity of the portfolio and determine which scenario(s) and specific scenario weights are applied within the estimation. The allowance for credit losses recorded in the balance sheet reflects Management’s best estimate of expected credit losses. There was not a material impact on the Company’s expected credit losses as a result of the change. The output of both models was within the range of acceptable values.

The Company classifies delinquent accounts at the end of each month according to the Company’s graded delinquency rules which includes the number of installments past due at that time, based on the then-existing terms of the contract. Accounts are classified in delinquency categories of 30-59 days past due, 60-89 days past due, or 90 or more days past due based on the Company’s graded delinquency policy. When a loan meets the Company’s charge-off policy, the loan is charged off, unless Management directs that it be retained as an active loan. In making this charge-off evaluation, Management considers factors such as pending insurance, bankruptcy status and other indicators of collectability. The amount charged off is the unpaid balance less the unearned finance charges and the unearned insurance premiums, if applicable.

Management ceases accruing finance charges on loans that meet the Company’s non-accrual policy based on grade delinquency rules, generally when two payments remain unpaid on precomputed loans or when the interest paid-to-date on an interest-bearing loan is 60 days or more past due. Finance charges are then only recognized to the extent there is a loan payment received or when the account qualifies for return to accrual status. Accounts qualify for return to accrual status when the graded delinquency on a precomputed loan is less than two payments and on when the interest paid-to-date on an interest-bearing loan is less than 60 days past due. There were no loans that met the non-accrual policy still accruing interest at December 31, 2023 or December 31, 2022.

Management believes that the allowance for credit losses, as calculated in accordance with the Company’s current expected credit loss (“CECL”) methodology, is appropriate to cover expected credit losses on loans at December 31, 2023; however, because the allowance for credit losses is based on estimates, there can be no assurance that the ultimate charge-off amount will match such estimates. Management may determine it is appropriate to increase or decrease the allowance for expected credit losses in future periods, or actual losses in any period, either of which events could have a material impact on our results of operations in the future.


December 31, 2023	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due Loans

Direct Cash Loans: Live Check Loans	$	4,555	$	4,228	$	6,548	$	15,331
Direct Cash Loans: Premier Loans	1,142		789		1,713		3,644
Direct Cash Loans: Other Consumer Loans	19,975		11,240		24,433		55,648
Real Estate Loans	776		334		1,403		2,513
Sales Finance Contracts	4,228		2,226		4,142		10,596
Total	$	30,676	$	18,817	$	38,239	$	87,732


December 31, 2022	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due Loans

Direct Cash Loans: Live Check Loans	$	6,217	$	4,524	$	8,232	$	18,973
Direct Cash Loans: Premier Loans	2,164		1,302		2,416		5,882
Direct Cash Loans: Other Consumer Loans	24,681		14,373		26,818		65,872
Real Estate Loans	894		436		1,380		2,710
Sales Finance Contracts	4,257		2,066		3,315		9,639
Total	$	38,214	$	22,702	$	42,161	$	103,077

While delinquency rating analysis is the primary credit quality indicator, we also consider the ratio of bankrupt accounts to the total loan portfolio in evaluating whether any qualitative adjustments were necessary to the allowance for credit losses. The ratio of bankrupt accounts to total principal loan balances outstanding at December 31, 2023 and December 31, 2022 was 1.43% and 1.25% respectively.


	Payment Performance – Principal Balance by Origination Year
	2023		2022		2021		2020		2019		Prior		Total Net Balance

Direct Cash Loans: Live Checks
Performing	$	127,733	$	14,842	$	2,455	$	344	$	36	$	17	$	145,427
Nonperforming	8,686		1,840		206		32		—		—		10,764
	$	136,419	$	16,682	$	2,661	$	376	$	36	$	17	$	156,191
Direct Cash Loans: Premier Loans
Performing	$	11,728	$	26,440	$	10,233	$	2,026	$	481	$	151	$	51,059
Nonperforming	162		1,521		645		134		24		19		2,505
	$	11,890	$	27,961	$	10,878	$	2,160	$	505	$	170	$	53,564
Direct Cash Loans: Other Consumer Loans
Performing	$	563,939	$	113,604	$	37,981	$	7,303	$	2,280	$	766	$	725,873
Nonperforming	18,550		9,673		3,450		741		256		88		32,758
	$	582,489	$	123,277	$	41,431	$	8,044	$	2,536	$	854	$	758,631
Real Estate Loans:
Performing	$	2,069	$	1,344	$	10,204	$	4,481	$	3,890	$	5,941	$	27,929
Nonperforming	6		21		673		168		228		279		1,375
	$	2,075	$	1,365	$	10,877	$	4,649	$	4,118	$	6,220	$	29,304
Sales Finance Contracts:
Performing	$	96,227	$	45,339	$	17,777	$	7,662	$	1,042	$	97	$	168,144
Nonperforming	2,157		2,513		1,158		617		100		15		6,560
	$	98,384	$	47,852	$	18,935	$	8,279	$	1,142	$	112	$	174,704


	2023
	Live Checks		Premier Loans		Other Consumer Loans		Real Estate Loans		Sales Finance Contracts		Total

Allowance for Credit Losses:
Balance at January 1, 2023	$	14,896	$	6,108	$	46,412	$	143	$	7,651	$	75,210
Provision for Credit Losses	20,807		2,592		51,726		2,360		9,903		87,388
Charge-offs	(31,397)		(7,685)		(68,011)		(22)		(10,354)		(117,469)
Recoveries	5,526		1,495		17,155		7		2,050		26,233
Ending Balance	$	9,832	$	2,510	$	47,282	$	2,488	$	9,250	$	71,362


	2022
	Live Checks		Premier Loans		Other Consumer Loans		Real Estate Loans		Sales Finance Contracts		Total

Allowance for Credit Losses:
Balance at January 1, 2022	$	10,649	$	6,216	$	44,646	$	265	$	5,535	$	67,311
Provision for Credit Losses	24,044		4,452		47,976		(102)		7,918		84,288
Charge-offs	(23,207)		(5,630)		(61,787)		(28)		(7,353)		(98,005)
Recoveries	3,410		1,070		15,577		8		1,551		21,616
Ending Balance	$	14,896	$	6,108	$	46,412	$	143	$	7,651	$	75,210

In March 2022 the Financial Accounting Standards Board ("FASB") issued an accounting update ("ASU No. 2022-02") eliminating the accounting for troubled debt restructurings (each, a "TDR") by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross credit losses by year of origination for finance receivables. The amendments in this update are effective for annual and interim periods beginning after December 15, 2022. The elimination of TDR guidance and enhanced disclosure requirements were adopted prospectively for loan modifications after adoption. These enhanced disclosures are presented herein for periods since adoption.

TDRs represent loans on which the original terms have been modified as a result of the following conditions: (i) the restructuring constitutes a concession and (ii) the borrower is experiencing financial difficulties. Loan modifications by the Company involve payment alterations, interest rate concessions, and/or reductions in the amount owed by the customer. We do not consider TDRs as new loans because the restructuring is part of our ongoing effort to recover its investment in the original loan. The Company allows refinancing of delinquent loans on a case-by-case basis for those who satisfy certain eligibility requirements. The eligible customers can include those experiencing temporary hardships, lawsuits, or customers who have declared bankruptcy. In most cases, the loans that eligible for restructuring are between 90 and 180 days past due. We do not allow the amount of the new loan to exceed the original amount of the existing loan and we believe that refinancing the delinquent loans for certain customers provides the Company with an opportunity to increase its average loans outstanding and its interest, fees, and other income without experiencing a significant increase in loan losses. These refinancings also provide a resolution to temporary financial setbacks for these borrowers and sustain their credit rating.

Legal fees and other direct costs incurred by the Company during a restructuring are expensed when incurred. The effective interest rate for restructured loan is based on the original contractual rate, not the rate specified in the restructuring agreement. The modified loans are adjusted to be recorded at the value of expected cash flows to be received in the future. Modifications that lower the principal balance experience a direct charge off for the difference of the original and modified principal amount. Substantially all of the restructurings relate to fee and interest rate concessions. The Company only lowers the principal balance in the event of a court order.


	Year ended December 31, 2023

Loan Class	Interest Rate Reduction				Term Extension				Principal Forgiveness				Combination - Term Extension and Principal Forgiveness				Combination - Term Extension and Interest Rate Reduction
Direct Cash Loans: Live Check Loans	$	5,244	36.9	%	$	2,350	16.5	%	$	2,557	18.0	%	$	2,784	19.6	%	$	1,277	9.0	%
Direct Cash Loans: Premier Loans	1,218		18.0	%	1,735		25.6	%	748		11.0	%	1,784		26.3	%	1,289		19.0	%
Direct Cash Loans: Other Consumer Loans	15,617		17.1	%	16,482		18.1	%	10,009		11.0	%	30,706		33.6	%	18,453		20.2	%
Real Estate Loans	281		75.6	%	48		12.9	%	25		6.8	%	—		—	%	17		4.7	%
Sales Finance Contracts	696		6.2	%	977		8.7	%	1,865		16.7	%	7,008		62.6	%	643		5.8	%
Total	$	23,056	18.6	%	$	21,591	17.4	%	$	15,206	12.3	%	$	42,282	34.1	%	$	21,679	17.5	%


Loan Modification	Loan Class	Financial Effect
Interest Rate Reduction	Live Check Loans	Reduced the weighted-weighted average contractual interest rate from 27.0% to 16.5%
	Premier Loans	Reduced the weighted-weighted average contractual interest rate from 20.2% to 15.5%
	Other Consumer Loans	Reduced the weighted-weighted average contractual interest rate from 29.2% to 19.4%
	Real Estate Loans	Reduced the weighted-weighted average contractual interest rate from 18.3% to 6.6%
	Sales Finance Contracts	Reduced the weighted-weighted average contractual interest rate from 21.9% to 15.7%
Term Extension	Live Check Loans	Added a weighted average 13 months to the term
	Premier Loans	Added a weighted average 23 months to the term
	Other Consumer Loans	Added a weighted average 16 months to the term
	Real Estate Loans	Added a weighted average 28 months to the term
	Sales Finance Contracts	Added a weighted average 17 months to the term
Principal Forgiveness	Live Check Loans	Reduced the gross balance of the loans $2.6 million
	Premier Loans	Reduced the gross balance of the loans $0.7 million
	Other Consumer Loans	Reduced the gross balance of the loans $10.0 million
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Reduced the gross balance of the loans $1.9 million




Loan Class	Interest Rate Reduction		Term Extension		Principal Forgiveness		Combination- Term Extension and Principal Forgiveness		Combination - Term Extension and Interest Rate Reduction

Direct Cash Loans: Live Check Loans	$	2,679	$	272	$	1,206	$	258	$	286
Direct Cash Loans: Premier Loans	458		139		359		181		221
Direct Cash Loans: Other Consumer Loans	4,880		1,004		3,207		2,264		1,994
Real Estate Loans	—		—		5		—		—
Sales Finance Contracts	222		66		420		398		82
Total	$	8,239	$	1,481	$	5,197	$	3,101	$	2,583

The aging for loans that were modified to borrowers experiencing financial difficulty in the past 12 months (in thousands):


	December 31, 2023

Loan Class	Current		30 - 89 Past Due		90+ Past Due		Total

Direct Cash Loans: Live Check Loans	$	4,023	$	1,096	$	1,629	$	6,747
Direct Cash Loans: Premier Loans	3,212		597		686		4,495
Direct Cash Loans: Other Consumer Loans	46,154		7,640		8,900		62,694
Real Estate Loans	183				198		380
Sales Finance Contracts	6,361		1,202		1,107		8,670
Total	$	59,933	$	10,534	$	12,519	$	82,986

The following table presents a summary of loans that were restructured during the year ended December 31, 2022 in (in thousands, except number of loans):


Loan Class	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment

Direct Cash Loans: Live Check Consumer Loans	6,238	$	11,026	$	10,869
Direct Cash Loans: Premier Consumer Loans	999	6,521		6,367
Direct Cash Loans: Other Consumer Loans	21,599	85,663		83,162
Real Estate Loans	26	238		236
Sales Finance Contracts	1,165	8,922		8,664
Total	30,027	$	112,370	$	109,298


Loan Class	Number of Loans	Pre-Modification Recorded Investment		Post-Modification Recorded Investment

Direct Cash Loans: Live Check Consumer Loans	2,303	$	4,357	$	4,266
Direct Cash Loans: Premier Consumer Loans	476	2,951		2,850
Direct Cash Loans: Other Consumer Loans	12,752	46,993		45,056
Real Estate Loans	28	347		347
Sales Finance Contracts	745	4,800		4,633
Total	16,304	$	59,449	$	57,152