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Loans to Bank Customers
 6 Months Ended
Jun. 30, 2020
Loans and Leases Receivable Disclosure [Abstract]  
Loans to Bank Customers Loans to Bank Customers
The following table presents total outstanding loans, gross of the related allowance for loan losses, and a summary of the related payment status:
30-59 Days Past Due60-89 Days Past Due90 Days or More Past DueTotal Past DueTotal Current or Less Than 30 Days Past DueTotal Outstanding
(In thousands)
June 30, 2020
Residential$125  $—  $—  $125  $3,645  $3,770  
Commercial—  —  —  —  1,074  1,074  
Installment2  —  —  2  1,215  1,217  
Secured credit card488  435  759  1,682  12,378  14,060  
Total loans$615  $435  $759  $1,809  $18,312  $20,121  
Percentage of outstanding3.1 %2.2 %3.8 %9.0 %91.0 %100.0 %
December 31, 2019
Residential$1  $—  $—  $1  $4,530  $4,531  
Commercial—  —  —  —  158  158  
Installment1  —  —  1  1,246  1,247  
Secured credit card1,080  939  2,183  4,202  12,445  16,647  
Total loans$1,082  $939  $2,183  $4,204  $18,379  $22,583  
Percentage of outstanding4.8 %4.2 %9.7 %18.6 %81.4 %100.0 %
Nonperforming Loans
The following table presents the carrying value, gross of the related allowance for loan losses, of our nonperforming loans. See Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the criteria for classification as nonperforming.
June 30, 2020December 31, 2019
(In thousands)
Residential$262  $290  
Installment131  147  
Secured credit card759  2,183  
Total loans$1,152  $2,620  
Credit Quality Indicators
We closely monitor and assess the credit quality and credit risk of our loan portfolio on an ongoing basis. We continuously review and update loan risk classifications. We evaluate our loans using non-classified or classified as the primary credit quality indicator. Classified loans are those loans that have demonstrated credit weakness where we believe there is a heightened risk of principal loss, including all impaired loans. Classified loans are generally internally categorized as substandard, doubtful or loss, consistent with regulatory guidelines.
Our secured credit card portfolio is collateralized by cash deposits made by each cardholder in an amount equal to the user's available credit limit, which mitigates the risk of any significant credit losses we expect to incur.
The table below presents the carrying value, gross of the related allowance for loan losses, of our loans within the primary credit quality indicators related to our loan portfolio:
Note 6—Loans to Bank Customers (continued)
June 30, 2020December 31, 2019
Non-ClassifiedClassifiedNon-ClassifiedClassified
(In thousands)
Residential$3,508  $262  $4,241  $290  
Commercial1,074  —  158  —  
Installment1,062  155  1,058  189  
Secured credit card13,301  759  14,464  2,183  
Total loans$18,945  $1,176  $19,921  $2,662  
Impaired Loans and Troubled Debt Restructurings
When, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession for other than an insignificant period of time to a borrower that we would not otherwise consider, the related loan is classified as a Troubled Debt Restructuring, or TDR. Our TDR modifications involve an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk. As of June 30, 2020, none of our TDR modifications have been made in response to the COVID-19 pandemic.
The following table presents our impaired loans and loans that we modified as TDRs as of June 30, 2020 and December 31, 2019:
June 30, 2020December 31, 2019
Unpaid Principal BalanceCarrying ValueUnpaid Principal BalanceCarrying Value
(In thousands)
Residential$262  $196  $290  $221  
Installment142  138  160  48  
Allowance for Loan Losses
Activity in the allowance for loan losses consisted of the following:
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
(In thousands)
Balance, beginning of period$1,057  $948  $1,166  $1,144  
Provision for loans62  590  254  1,256  
Loans charged off(634) (637) (1,121) (1,549) 
Recoveries of loans previously charged off85  69  271  119  
Balance, end of period$570  $970  $570  $970