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Loans to Bank Customers | 3 Months Ended
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Mar. 31, 2023
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 credit losses, and a summary of the related payment status:
| 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or More Past Due |  | Total Past Due |  | Total Current or Less Than 30 Days Past Due |  | Total Outstanding
| (In thousands)
March 31, 2023 |
Residential | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,604 |  |  | $ | 4,604 |
Commercial | — |  |  | — |  |  | — |  |  | — |  |  | 2,540 |  |  | 2,540 |
Installment | — |  |  | — |  |  | — |  |  | — |  |  | 3,840 |  |  | 3,840 |
Consumer | 1,823 |  |  | — |  |  | — |  |  | 1,823 |  |  | 24,124 |  |  | 25,947 |
Secured credit card | 680 |  |  | 570 |  |  | 2,220 |  |  | 3,470 |  |  | 4,558 |  |  | 8,028 |
Total loans | $ | 2,503 |  |  | $ | 570 |  |  | $ | 2,220 |  |  | $ | 5,293 |  |  | $ | 39,666 |  |  | $ | 44,959 |
Percentage of outstanding | 5.6 | % |  | 1.3 | % |  | 4.9 | % |  | 11.8 | % |  | 88.2 | % |  | 100.0 | %
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Residential | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,264 |  |  | $ | 4,264 |
Commercial | — |  |  | — |  |  | — |  |  | — |  |  | 2,542 |  |  | 2,542 |
Installment | — |  |  | — |  |  | — |  |  | — |  |  | 1,407 |  |  | 1,407 |
Consumer | 2,261 |  |  | — |  |  | — |  |  | 2,261 |  |  | 12,185 |  |  | 14,446 |
Secured credit card | 712 |  |  | 722 |  |  | 2,239 |  |  | 3,673 |  |  | 4,167 |  |  | 7,840 |
Total loans | $ | 2,973 |  |  | $ | 722 |  |  | $ | 2,239 |  |  | $ | 5,934 |  |  | $ | 24,565 |  |  | $ | 30,499 |
Percentage of outstanding | 9.8 | % |  | 2.4 | % |  | 7.3 | % |  | 19.5 | % |  | 80.5 | % |  | 100.0 | %
We offer an optional overdraft protection program service on certain demand deposit account programs that allows cardholders who opt-in to spend up to a pre-authorized amount in excess of their available card balance. When overdrawn, the purchase related balances due on these deposit accounts are reclassified as consumer loans. Fees due from our cardholders for our overdraft service are included as a component of accounts receivable. Overdrawn balances are unsecured and considered immediately due from the cardholder. A portion of our secured credit card portfolio is classified as loans held for sale. These loans are included in the long-term portion of prepaid and other assets on our consolidated balance sheets. Changes in valuation allowances are recorded as a component of other income and expenses on our consolidated statement of operations. As of March 31, 2023 and December 31, 2022, the fair value of the loans held for sale amounted to approximately $4.6 million and $5.3 million, respectively. Nonperforming Loans The following table presents the carrying value, gross of the related allowance for credit 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, 2022 for further information on the criteria for classification as nonperforming.
| March 31, 2023 |  | December 31, 2022
| (In thousands)
Residential | $ | 146 |  |  | $ | 153 |
Installment | 92 |  |  | 96 |
Secured credit card | 2,220 |  |  | 2,239 |
Total loans | $ | 2,458 |  |  | $ | 2,488 |
Note 6—Loans to Bank Customers (continued) 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 include those designated as substandard, doubtful, or loss, consistent with regulatory guidelines. Secured credit card loans are considered classified if they are greater than 90 days past due. However, 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 credit losses, of our loans within the primary credit quality indicators related to our loan portfolio:
| March 31, 2023 |  | December 31, 2022
| Non-Classified |  | Classified |  | Non-Classified |  | Classified
| (In thousands)
Residential | $ | 4,492 |  |  | $ | 112 |  |  | $ | 4,035 |  |  | $ | 229 |
Commercial | 2,540 |  |  | — |  |  | 2,542 |  |  | — |
Installment | 3,748 |  |  | 92 |  |  | 1,306 |  |  | 101 |
Consumer | 25,947 |  |  | — |  |  | 14,446 |  |  | — |
Secured credit card | 5,808 |  |  | 2,220 |  |  | 5,601 |  |  | 2,239 |
Total loans | $ | 42,535 |  |  | $ | 2,424 |  |  | $ | 27,930 |  |  | $ | 2,569 |
Allowance for Credit Losses Activity in the allowance for credit losses on our loan portfolio consisted of the following:
|  |  | Three Months Ended March 31,
|  |  |  |  | 2023 |  | 2022
|  |  |  |  | (In thousands)
Balance, beginning of period |  |  |  |  | $ | 9,078 |  |  | $ | 5,555 |
Provision for loans |  |  |  |  | 10,252 |  |  | 10,499 |
Loans charged off |  |  |  |  | (6,101) |  |  | (6,996) |
Recoveries of loans previously charged off |  |  |  |  | 25 |  |  | — |
Balance, end of period |  |  |  |  | $ | 13,254 |  |  | $ | 9,058 |

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