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Finance Receivables, Net
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Finance Receivables, Net FINANCE RECEIVABLES, NET
Finance receivables, net consist of the following (in thousands):

As of December 31,
20212020
Finance receivables, gross$220,329 $— 
Fair value premium on non-PCD finance receivables (1)
40,251 — 
Non-credit discount on PCD finance receivables (2)
(3,521)— 
Merchant partner discounts and premiums, net(104)— 
Unearned origination fees(360)— 
Finance receivables, amortized cost256,595 — 
Less allowance for loan losses75,574 — 
Finance receivables, net$181,021 $— 

(1)Represents the difference between the initial fair value and the unpaid principal balance as of the date of the AFF Acquisition, which is recognized as interest income on an effective yield basis over the lives of the related non-PCD finance receivables. See Note 3.

(2)Represents the difference between the unpaid principal balance and the amortized cost basis as of the date of the AFF Acquisition, which is recognized through interest income on an effective yield basis over the life of the related PCD finance receivables. See Note 3.

Changes in the allowance for loan losses are as follows (in thousands):

As of December 31,
 20212020
Balance at beginning of year$— $34 
Provision for loan losses (1)
48,952 (488)
Initial allowance recognized for PCD loans (2)
32,036 — 
Charge-offs(5,545)(114)
Recoveries131 568 
Balance at end of year$75,574 $— 

(1)For the year ended December 31, 2021, includes $44.3 million as a result of the establishment of the initial allowance for expected lifetime credit losses for non-PCD finance receivables acquired in the AFF Acquisition, which is recorded as provision for loan losses in the consolidated statements of income. See Note 3.

(2)Represents the establishment of the initial allowance for expected lifetime credit losses for PCD finance receivables acquired in the AFF Acquisition, which is added to the acquisition date fair value to establish the initial amortized cost basis of the PCD loans. As this initial allowance for loan losses is added to the acquisition date fair value, there is no provision for loan losses recognized in the consolidated statements of income. See Note 3.
The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of December 31, 2021, by origination year:

 20212020Total
FICO score category (1):
No FICO score identified or obtained$57,536 $2,537 $60,073 
599 or less69,703 11,701 81,404 
Between 600 and 69959,121 9,389 68,510 
700 or greater8,637 1,241 9,878 
Finance receivables before fair value adjustments$194,997 $24,868 219,865 
Fair value premium on non-PCD finance receivables40,251 
Non-credit discount on PCD finance receivables(3,521)
Finance receivables, amortized cost$256,595 

(1)FICO score as determined at the time of loan origination.

The following is an aging of the amortized cost of finance receivables as of December 31, 2021, by origination year:

20212020Total
Delinquency:
1 to 30 days past due$16,077 $2,260 $18,337 
31 to 60 days past due10,024 1,648 11,672 
61 to 90 days past due (1)
7,898 1,478 9,376 
Total past due finance receivables before fair value adjustments33,999 5,386 39,385 
Current finance receivables before fair value adjustments160,998 19,482 180,480 
Finance receivables before fair value adjustments$194,997 $24,868 219,865 
Fair value premium on non-PCD finance receivables40,251 
Non-credit discount on PCD finance receivables(3,521)
Finance receivables, amortized cost$256,595 

(1)The Company charges off finance receivables when a receivable is 90 days or more contractually past due.