XML 54 R31.htm IDEA: XBRL DOCUMENT v3.22.4
Finance Receivables, Net (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Schedule of Finance Receivables, Net
Finance receivables, net, originated in the retail POS payment solutions segment, consist of the following (in thousands):

As of December 31,
20222021
Finance receivables, gross$195,987 $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(3,517)(104)
Unearned origination fees(4,143)(360)
Finance receivables, amortized cost188,327 256,595 
Less allowance for loan losses(84,833)(75,574)
Finance receivables, net$103,494 $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.

(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 lives of the related PCD finance receivables.
Schedule of Allowance for Credit Losses
Changes in the allowance for loan losses are as follows (in thousands):

As of December 31,
 20222021
Balance at beginning of year$75,574 $— 
Provision for loan losses (1)
118,502 48,952 
Initial allowance recognized for PCD loans (2)
— 32,036 
Charge-offs(114,535)(5,545)
Recoveries5,292 131 
Balance at end of year$84,833 $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.

(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 during 2021 for PCD loans.
Financing Receivable, Past Due
The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of December 31, 2022 and 2021, by origination year (in thousands):

Origination Year
202220212020Total
As of December 31, 2022
Delinquency:
1 to 30 days past due$14,186 $2,795 $— $16,981 
31 to 60 days past due8,048 1,822 — 9,870 
61 to 90 days past due (1)
6,597 1,750 — 8,347 
Total past due finance receivables28,831 6,367 — 35,198 
Current finance receivables132,197 20,932 — 153,129 
Finance receivables, amortized cost$161,028 $27,299 $— 188,327 
As of December 31, 2021
Delinquency:
1 to 30 days past due$— $16,077 $2,260 $18,337 
31 to 60 days past due— 10,024 1,648 11,672 
61 to 90 days past due (1)
— 7,898 1,478 9,376 
Total past due finance receivables before fair value adjustments— 33,999 5,386 39,385 
Current finance receivables before fair value adjustments— 160,998 19,482 180,480 
Finance receivables before fair value adjustments$— $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.