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Finance Receivables (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Schedule of Installment Finance Receivables at Fair Value

The components of installment finance receivables at fair value as of September 30, 2022 and December 31, 2021 were as follows (in thousands):

			September 30, 2022						December 31, 2021
Unpaid principal balance of finance receivables - accrual			$	368,775					$	307,059
Unpaid principal balance of finance receivables - non-accrual			33,796						25,185
Unpaid principal balance of finance receivables			$	402,571					$	332,244
Finance receivables at fair value - accrual			$	437,573					$	369,576
Finance receivables at fair value - non-accrual			5,206						3,677
Finance receivables at fair value, excluding accrued interest and fees receivable			442,779						373,253
Accrued interest and fees receivable			15,286						10,637
Finance receivables at fair value			$	458,065					$	383,890
Difference between unpaid principal balance and fair value			$	40,208					$	41,009

Schedule of Changes in Fair Value of Installment Finance Receivables

Changes in the fair value of installment finance receivables at fair value for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Balance at the beginning of the period			$	450,703					$	296,381					$	383,890					$	289,166
Originations of principal			185,092						155,055						550,483						401,373
Repayments of principal and recoveries			(109,519)						(98,202)						(318,677)						(303,305)
Accrued interest and fees receivable			2,390						(180)						4,649						1,332
Charge-offs, net (1)			(67,709)						(24,891)						(161,479)						(62,046)
Adjustment to fair value			—						—						—						(1,817)
Net change in fair value (1)			(2,892)						5,951						(801)						9,411
Balance at the end of the period			$	458,065					$	334,114					$	458,065					$	334,114
(1) Included in "Change in fair value of finance receivables" in the consolidated statements of operations.

Schedule of Finance Receivables

The components of finance receivables carried at amortized cost as of September 30, 2022 and December 31, 2021 were as follows (in thousands):

			September 30, 2022						December 31, 2021
Finance receivables			$	5,159					$	5,285
Accrued interest and fees			12						24
Unearned annual fee income			(81)						(286)
Allowance for credit losses			(1,232)						(803)
Finance receivables at amortized cost, net			$	3,858					$	4,220

Summary of Changes in Allowance for Credit Losses on Finance Receivables

Changes in the allowance for credit losses on finance receivables for the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Beginning balance			$	1,045					$	11					$	803					$	55,031
Effects of adopting fair value option			—						—						—						(55,031)
Provisions for credit losses on finance receivables			1,017						143						2,043						181
Finance receivables charged off			(831)						(8)						(1,615)						(35)
Recoveries of charge-offs			1						—						1						—
Ending balance			$	1,232					$	146					$	1,232					$	146

Summary of Credit Quality Finance Receivable Portfolio

The following is an assessment of the credit quality of finance receivables at amortized cost and presents the recency and contractual delinquency of the finance receivable portfolio as of September 30, 2022 and December 31, 2021 (in thousands):

						September 30, 2022												December 31, 2021
						Recency delinquency						Contractual delinquency						Recency delinquency						Contractual delinquency
Current						$	3,518					$	3,399					$	5,016					$	4,993
Delinquency
30-59 days						290						302						152						171
60-89 days						227						285						102						104
90+ days						1,124						1,173						15						17
Total delinquency						1,641						1,760						269						292
Finance receivables						$	5,159					$	5,159					$	5,285					$	5,285

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Tabular disclosure of allowance for credit loss on financing receivable.

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