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Loans to Bank Customers
 3 Months Ended
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 Due60-89 Days Past Due90 Days or More Past DueTotal Past DueTotal Current or Less Than 30 Days Past DueTotal Outstanding
(In thousands)
March 31, 2023
Residential$— $— $— $— $4,604 $4,604 
Commercial— — — — 2,540 2,540 
Installment— — — — 3,840 3,840 
Consumer1,823 — — 1,823 24,124 25,947 
Secured credit card680 570 2,220 3,470 4,558 8,028 
Total loans$2,503 $570 $2,220 $5,293 $39,666 $44,959 
Percentage of outstanding5.6 %1.3 %4.9 %11.8 %88.2 %100.0 %
December 31, 2022
Residential$— $— $— $— $4,264 $4,264 
Commercial— — — — 2,542 2,542 
Installment— — — — 1,407 1,407 
Consumer2,261 — — 2,261 12,185 14,446 
Secured credit card712 722 2,239 3,673 4,167 7,840 
Total loans$2,973 $722 $2,239 $5,934 $24,565 $30,499 
Percentage of outstanding9.8 %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, 2023December 31, 2022
(In thousands)
Residential$146 $153 
Installment92 96 
Secured credit card2,220 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, 2023December 31, 2022
Non-ClassifiedClassifiedNon-ClassifiedClassified
(In thousands)
Residential$4,492 $112 $4,035 $229 
Commercial2,540 — 2,542 — 
Installment3,748 92 1,306 101 
Consumer25,947 — 14,446 — 
Secured credit card5,808 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,
20232022
(In thousands)
Balance, beginning of period$9,078 $5,555 
Provision for loans10,252 10,499 
Loans charged off(6,101)(6,996)
Recoveries of loans previously charged off25 — 
Balance, end of period$13,254 $9,058