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Finance Receivables, Net | 9 Months Ended
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Sep. 30, 2023
Receivables [Abstract] |
Finance Receivables, Net | Finance Receivables, Net Finance receivables, net, which include retail installment sales agreements and bank-originated installment loans, consist of the following (in thousands):
| As of September 30, |  | As of December 31,
| 2023 |  | 2022 |  | 2022
Finance receivables, gross | $ | 224,618 |  |  | $ | 188,897 |  |  | $ | 195,987 |
Fair value premium on non-purchase credit deteriorated (”PCD”) finance receivables (1) | — |  |  | 6,839 |  |  | — |
Merchant partner discounts and premiums, net | (9,730) |  |  | (2,044) |  |  | (3,517) |
Unearned origination fees | (4,897) |  |  | (3,334) |  |  | (4,143) |
Finance receivables, amortized cost | 209,991 |  |  | 190,358 |  |  | 188,327 |
Less allowance for loan losses | (96,684) |  |  | (78,413) |  |  | (84,833) |
Finance receivables, net | $ | 113,307 |  |  | $ | 111,945 |  |  | $ | 103,494 |
(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 through interest income on an effective yield basis over the lives of the related non-PCD finance receivables. The following table details the changes in the allowance for loan losses (in thousands):
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Balance at beginning of period | $ | 93,054 |  |  | $ | 73,936 |  |  | $ | 84,833 |  |  | $ | 75,574 |
Provision for loan losses | 33,096 |  |  | 31,956 |  |  | 90,571 |  |  | 83,453 |
Charge-offs | (30,890) |  |  | (28,642) |  |  | (83,281) |  |  | (84,629) |
Recoveries | 1,424 |  |  | 1,163 |  |  | 4,561 |  |  | 4,015 |
Balance at end of period | $ | 96,684 |  |  | $ | 78,413 |  |  | $ | 96,684 |  |  | $ | 78,413 |
The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of September 30, 2023 and 2022, by origination year (in thousands):
| Origination Year |  |
| 2023 |  | 2022 |  | 2021 |  | Total
As of September 30, 2023 |  |  |  |  |  |  |
Delinquency: |  |  |  |  |  |  |
1 to 30 days past due | $ | 14,764 |  |  | $ | 4,150 |  |  | $ | 179 |  |  | $ | 19,093 |
31 to 60 days past due | 9,036 |  |  | 2,792 |  |  | 148 |  |  | 11,976 |
61 to 89 days past due (1) | 7,109 |  |  | 2,816 |  |  | 173 |  |  | 10,098 |
Total past due finance receivables | 30,909 |  |  | 9,758 |  |  | 500 |  |  | 41,167 |
Current finance receivables | 136,555 |  |  | 31,222 |  |  | 1,047 |  |  | 168,824 |
Finance receivables, amortized cost | $ | 167,464 |  |  | $ | 40,980 |  |  | $ | 1,547 |  |  | $ | 209,991 |
| Origination Year |  |
| 2022 |  | 2021 |  | 2020 |  | Total
As of September 30, 2022 |  |  |  |  |  |  |
Delinquency: |  |  |  |  |  |  |
1 to 30 days past due | $ | 11,149 |  |  | $ | 4,468 |  |  | $ | 150 |  |  | $ | 15,767 |
31 to 60 days past due | 7,118 |  |  | 3,233 |  |  | 100 |  |  | 10,451 |
61 to 89 days past due (1) | 5,971 |  |  | 3,292 |  |  | 120 |  |  | 9,383 |
Total past due finance receivables before fair value adjustments | 24,238 |  |  | 10,993 |  |  | 370 |  |  | 35,601 |
Current finance receivables before fair value adjustments | 111,023 |  |  | 35,969 |  |  | 926 |  |  | 147,918 |
Finance receivables before fair value adjustments | $ | 135,261 |  |  | $ | 46,962 |  |  | $ | 1,296 |  |  | 183,519 |
Fair value premium on non-PCD finance receivables |  |  |  |  |  |  | 6,839 |
Finance receivables, amortized cost |  |  |  |  |  |  | $ | 190,358 |
(1)The Company charges off finance receivables when a receivable is 90 days or more contractually past due. The following table details the gross charge-offs of finance receivables for the nine months ended September 30, 2023, by origination year (in thousands):
| Origination Year |  |
| 2023 |  | 2022 |  | 2021 |  | Total
Finance receivables gross charge-offs: |  |  |  |  |  |  |
Gross charge-offs during the nine months ended September 30, 2023 | $ | 24,676 |  |  | $ | 51,150 |  |  | $ | 7,455 |  |  | $ | 83,281 |

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