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Finance Receivables | 9 Months Ended
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Sep. 30, 2021
Receivables [Abstract] |
Finance Receivables | Finance ReceivablesFinance receivables at fair value: The components of installment finance receivables at fair value as of September 30, 2021 were as follows (in thousands):
Unpaid principal balance of finance receivables - accrual |  | $ | 272,678 |
Unpaid principal balance of finance receivables - non-accrual |  | 19,198 |
Unpaid principal balance of finance receivables |  | $ | 291,876 |
Finance receivables at fair value - accrual |  | $ | 323,931 |
Finance receivables at fair value - non-accrual |  | 941 |
Finance receivables at fair value, excluding accrued interest and fees receivable |  | 324,872 |
Accrued interest and fees receivable |  | 9,242 |
Finance receivables at fair value |  | $ | 334,114 |
Difference between unpaid principal balance and fair value |  | $ | 32,996 |
The Company’s policy is to discontinue and reverse the accrual of interest income on installment finances receivables at the earlier of 60 days past due on a recency basis or 90 days past due on a contractual basis. As of September 30, 2021 and December 31, 2020 the aggregate unpaid principal balance and fair value of installment finance receivables 90 days or more past due was $9,979 thousand and $489 thousand, respectively. Changes in the fair value of installment finance receivables at fair value during the three months ended September 30, 2021 were as follows (in thousands):
Balance at the beginning of the period |  | $ | 296,381 |
Originations of principal |  | 155,055 |
Repayments of principal |  | (98,202) |
Accrued interest and fees receivable |  | (180) |
Charge-offs, net (1) |  | (24,891) |
Net change in fair value (1) |  | 5,951 |
Balance at the end of the period |  | $ | 334,114 |
(1) Included in "Change in fair value of finance receivables" in the Consolidated Statements of Operations.
Changes in the fair value of installment finance receivables at fair value during the nine months ended September 30, 2021 were as follows (in thousands):
Balance at the beginning of the period |  | $ | 289,166 |
Originations of principal |  | 401,373 |
Repayments of principal |  | (303,305) |
Accrued interest and fees receivable |  | 1,332 |
Charge-offs, net (1) |  | (62,046) |
Adjustment to fair value |  | (1,817) |
Net change in fair value (1) |  | 9,411 |
Balance at the end of the period |  | $ | 334,114 |
(1) Included in "Change in fair value of finance receivables" in the Consolidated Statements of Operations.
Finance receivables at amortized cost, net: Prior to January 1, 2021, the Company carried all finance receivables at amortized cost, including accrued interest and fees, unamortized loan origination costs, and allowance for credit losses. On January 1, 2021, the Company elected the fair value option for its installment finance receivables. The Company did not elect the fair value option for its SalaryTap and OppFi Card finance receivables, which are carried at amortized cost. The components of finance receivables carried at amortized cost as of September 30, 2021 and December 31, 2020 were as follows (in thousands):
|  | September 30, 2021 |  | December 31, 2020
Finance receivables |  | $ | 1,402 |  |  | $ | 255,943 |
Accrued interest and fees |  | 13 |  |  | 7,910 |
Unamortized loan origination costs |  | — |  |  | 13,421 |
Allowance for credit losses |  | (146) |  |  | (55,031) |
Finance receivables at amortized cost, net |  | $ | 1,269 |  |  | $ | 222,243 |
Changes in the allowance for credit losses on finance receivables during the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands):
|  | For The Three Months Ended
|  | September 30, 2021 |  | September 30, 2020
Beginning balance |  | $ | 11 |  |  | $ | 43,858 |
Provisions for credit losses on finance receivables |  | 143 |  |  | 16,303 |
Finance receivables charged off |  | (8) |  |  | (15,277) |
Recoveries of charge offs |  | — |  |  | 2,650 |
Ending balance |  | $ | 146 |  |  | $ | 47,534 |
|  | For The Nine Months Ended
|  | September 30, 2021 |  | September 30, 2020
Beginning balance |  | $ | 55,031 |  |  | $ | 53,146 |
Effects of adopting fair value option |  | (55,031) |  |  | — |
Provisions for credit losses on finance receivables |  | 181 |  |  | 56,136 |
Finance receivables charged off |  | (35) |  |  | (70,073) |
Recoveries of charge offs |  | — |  |  | 8,325 |
Ending balance |  | $ | 146 |  |  | $ | 47,534 |
Changes in the reserve for repurchase liability for third-party lender losses were as follows for the three months ended September 30, 2020 (in thousands):
Beginning balance, June 30, 2020 |  | $ | 3,180 |
Provision for repurchase liabilities |  | 1,577 |
Finance receivables charged off |  | (1,427) |
Recoveries of charge offs |  | 194 |
Ending balance, September 30, 2020 |  | $ | 3,524 |
Changes in the reserve for repurchase liability for third-party lender losses were as follows for the nine months ended September 30, 2020 (in thousands):
Beginning balance, December 31, 2019 |  | $ | 4,978 |
Provision for repurchase liabilities |  | 6,619 |
Finance receivables charged off |  | (8,772) |
Recoveries of charge offs |  | 699 |
Ending balance, September 30, 2020 |  | $ | 3,524 |
The Company released the reserve for repurchase liability for third-party lender losses on January 1, 2021 upon election of the fair value option for its installment finance receivables. As such, there was no reserve for repurchase liability for third-party losses as of January 1, 2021 and thereafter. The following is an assessment of the credit quality of finance receivables at amortized cost and presents the recency delinquency and contractual delinquency of the finance receivable portfolio as of September 30, 2021 and December 31, 2020 (in thousands):
|  | September 30, 2021 |  | December 31, 2020
|  | Recency delinquency |  | Contractual delinquency |  | Recency delinquency |  | Contractual delinquency
Current |  | $ | 1,368 |  |  | $ | 1,378 |  |  | $ | 240,623 |  |  | $ | 220,438 |
Delinquency |  |  |  |  |  |  |  |
30-59 days |  | 44 |  |  | 34 |  |  | 7,760 |  |  | 12,574 |
60-89 days |  | 3 |  |  | 3 |  |  | 7,560 |  |  | 9,852 |
90+ days |  | — |  |  | — |  |  | — |  |  | 13,079 |
Total delinquency |  | 47 |  |  | 37 |  |  | 15,320 |  |  | 35,505 |
Finance receivables |  | $ | 1,415 |  |  | $ | 1,415 |  |  | $ | 255,943 |  |  | $ | 255,943 |
In accordance with the Company’s income recognition policy, finance receivables in non-accrual status as of September 30, 2021 and December 31, 2020 was $3 thousand and $19,277 thousand, respectively. There were no finance receivables guaranteed by the Company under the CSO Program which were greater than 90 days past due as of September 30, 2021 and December 31, 2020, which had not already been repurchased by the Company and included in the totals above.

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- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2196816 + Details
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