10. Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of reconciliation of the finance receivables measured at fair value on a recurring basis

The table below presents a reconciliation of the finance receivables measured at fair value on a recurring basis using significant unobservable inputs:

	Three Months Ended
	March 31,
	2019			2018
	(In thousands)
Balance at beginning of period	$	821,066		$	–
Finance receivables at fair value acquired during period		244,753			212,610
Payments received on finance receivables at fair value		(49,500	)		(2,642	)
Net interest income accretion on fair value receivables		(18,767	)		(121	)
Mark to fair value		–			–
Balance at end of period	$	997,552		$	209,847

Schedule of finance receivables to their contractual balances

The table below compares the fair values of these finance receivables to their contractual balances for the periods shown:

	March 31, 2019				December 31, 2018
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)
Finance receivables measured at fair value	$	1,016,328	$	997,552	$	829,039	$	821,066

Schedule of level 3 fair value measurements

The following table provides certain qualitative information about our level 3 fair value measurements:

Financial Instrument	Fair Values as of					Inputs as of
	March 31,		December 31,			March 31,	December 31,
	2019		2018		Unobservable Inputs	2019	2018
	(In thousands)
Assets:
Finance receivables measured at fair value	$	997,552	$	821,066	Discount rate	8.9% - 10.75%	8.9% - 9.9%
					Cumulative net losses	15% - 16%	15% - 16%

Schedule of delinquency status of finance receivables measured at fair value

The following table summarizes the delinquency status of these finance receivables measured at fair value as of March 31, 2019 and December 31, 2018:

	March 31,		December 31,
	2019		2018
	(In thousands)
Delinquency Status
Current	$	971,950	$	790,727
31 - 60 days		28,708		26,285
61 - 90 days		10,126		8,350
91 + days		5,544		3,677
	$	1,016,328	$	829,039

Schedule of estimated fair values of financial assets and liabilities

The estimated fair values of financial assets and liabilities at March 31, 2019 and December 31, 2018, were as follows:

	As of March 31, 2019
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	8,914	$	8,914	$	–	$	–	$	8,914
Restricted cash and equivalents		135,508		135,508		–		–		135,508
Finance receivables, net		1,296,164		–		–		1,264,423		1,264,423
Accrued interest receivable		21,045		–		–		21,045		21,045
Liabilities:
Warehouse lines of credit	$	117,104	$	–	$	–	$	117,104	$	117,104
Accrued interest payable		5,144		–		–		5,144		5,144
Residual interest financing		39,199		–		–		39,199		39,199
Securitization trust debt		2,109,024		–		–		2,110,165		2,110,165
Subordinated renewable notes		12,986		–		–		12,986		12,986

	As of December 31, 2018
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	12,787	$	12,787	$	–	$	–	$	12,787
Restricted cash and equivalents		117,323		117,323		–		–		117,323
Finance receivables, net		1,454,709		–		–		1,434,631		1,434,631
Accrued interest receivable		31,969		–		–		31,969		31,969
Liabilities:
Warehouse lines of credit	$	136,847	$	–	$	–	$	136,847	$	136,847
Accrued interest payable		4,819		–		–		4,819		4,819
Residual interest financing		39,106		–		–		39,106		39,106
Securitization trust debt		2,063,627		–		–		2,051,920		2,051,920
Subordinated renewable notes		17,290		–		–		17,290		17,290