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Finance Receivables | 9 Months Ended
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Sep. 30, 2023
Receivables [Abstract] |
Finance Receivables | Finance Receivables Finance receivables at fair value: The components of installment finance receivables at fair value as of September 30, 2023 and December 31, 2022 were as follows (in thousands):
| September 30, 2023 |  | December 31, 2022
Unpaid principal balance of finance receivables - accrual | $ | 385,893 |  |  | $ | 369,643 |
Unpaid principal balance of finance receivables - non-accrual | 30,040 |  |  | 32,537 |
Unpaid principal balance of finance receivables | $ | 415,933 |  |  | $ | 402,180 |
Finance receivables at fair value - accrual | $ | 445,139 |  |  | $ | 436,552 |
Finance receivables at fair value - non-accrual | 4,920 |  |  | 4,944 |
Finance receivables at fair value, excluding accrued interest and fees receivable | 450,059 |  |  | 441,496 |
Accrued interest and fees receivable | 16,406 |  |  | 15,800 |
Finance receivables at fair value | $ | 466,465 |  |  | $ | 457,296 |
Difference between unpaid principal balance and fair value | $ | 34,126 |  |  | $ | 39,316 |
The Company’s policy is to discontinue and reverse the accrual of interest income on installment finance 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, 2023, the aggregate unpaid principal balance and fair value of installment finance receivables 90 days or more past due on a contractual basis was $15.9 million and $2.5 million, respectively. As of December 31, 2022, the aggregate unpaid principal balance and fair value of installment finance receivables 90 days or more past due on a contractual basis was $17.6 million and $2.7 million, respectively. Changes in the fair value of installment finance receivables at fair value for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Balance at the beginning of the period | $ | 446,956 |  |  | $ | 450,703 |  |  | $ | 457,296 |  |  | $ | 383,890 |
Originations | 192,906 |  |  | 185,092 |  |  | 539,152 |  |  | 550,483 |
Repayments | (118,411) |  |  | (109,519) |  |  | (366,126) |  |  | (318,677) |
Accrued interest and fees receivable | 2,316 |  |  | 2,390 |  |  | 606 |  |  | 4,649 |
Charge-offs, net (1) | (56,315) |  |  | (67,709) |  |  | (159,273) |  |  | (161,479) |
Net change in fair value (1) | (987) |  |  | (2,892) |  |  | (5,190) |  |  | (801) |
Balance at the end of the period | $ | 466,465 |  |  | $ | 458,065 |  |  | $ | 466,465 |  |  | $ | 458,065 |
(1) Included in "Change in fair value of finance receivables" in the consolidated statements of operations. |  |
Finance receivables at amortized cost, net: The components of finance receivables at amortized cost as of September 30, 2023 and December 31, 2022 were as follows (in thousands):
| September 30, 2023 |  | December 31, 2022
Finance receivables | $ | 2,355 |  |  | $ | 730 |
Accrued interest and fees | 3 |  |  | 9 |
Unearned annual fee income | (66) |  |  | — |
Allowance for credit losses | (2,083) |  |  | (96) |
Finance receivables at amortized cost, net | $ | 209 |  |  | $ | 643 |
Changes in the allowance for credit losses on finance receivables at amortized cost for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Beginning balance | $ | 2,411 |  |  | $ | 1,045 |  |  | $ | 96 |  |  | $ | 803 |
Provisions for credit losses on finance receivables | 195 |  |  | 1,017 |  |  | 4,131 |  |  | 2,043 |
Finance receivables charged off | (535) |  |  | (831) |  |  | (2,159) |  |  | (1,615) |
Recoveries of charge offs | 12 |  |  | 1 |  |  | 15 |  |  | 1 |
Ending balance | $ | 2,083 |  |  | $ | 1,232 |  |  | $ | 2,083 |  |  | $ | 1,232 |
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, 2023 and December 31, 2022 (in thousands):
|  | September 30, 2023 |  | December 31, 2022
|  | Recency delinquency |  | Contractual delinquency |  | Recency delinquency |  | Contractual delinquency
Current |  | $ | 1,697 |  |  | $ | 1,659 |  |  | $ | 638 |  |  | $ | 585 |
Delinquency |  |  |  |  |  |  |  |
30-59 days |  | 130 |  |  | 132 |  |  | 45 |  |  | 44 |
60-89 days |  | 97 |  |  | 104 |  |  | 47 |  |  | 59 |
90+ days |  | 431 |  |  | 460 |  |  | — |  |  | 42 |
Total delinquency |  | 658 |  |  | 696 |  |  | 92 |  |  | 145 |
Finance receivables |  | $ | 2,355 |  |  | $ | 2,355 |  |  | $ | 730 |  |  | $ | 730 |
In accordance with the Company’s income recognition policy, finance receivables at amortized cost in non-accrual status as of September 30, 2023 and December 31, 2022 were $38 thousand and $0.1 million, respectively.

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