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Loans to Bank Customers
 3 Months Ended
Mar. 31, 2025
Credit Loss [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, 2025
Residential$— $— $— $— $7,400 $7,400 
Commercial— — — — 2,571 2,571 
Installment— — — — 6,247 6,247 
Consumer1,339 — — 1,339 35,438 36,777 
Secured credit card485 597 2,022 3,104 4,967 8,071 
Total loans$1,824 $597 $2,022 $4,443 $56,623 $61,066 
Percentage of outstanding3.0 %1.0 %3.3 %7.3 %92.7 %100.0 %
December 31, 2024
Residential$1 $— $— $1 $6,874 $6,875 
Commercial— — — — 2,585 2,585 
Installment— 933 — 933 4,506 5,439 
Consumer1,668 — — 1,668 23,868 25,536 
Secured credit card700 700 2,536 3,936 5,132 9,068 
Total loans$2,369 $1,633 $2,536 $6,538 $42,965 $49,503 
Percentage of outstanding4.8 %3.3 %5.1 %13.2 %86.8 %100.0 %
We offer an optional overdraft protection program service on certain demand deposit account programs that allows customers who opt-in and meet certain criteria to spend up to a pre-authorized amount in excess of their available account balance. When overdrawn, the purchase related balances due on these deposit accounts are reclassified as consumer loans. Fees due from our accountholders for our overdraft service are included as a component of accounts receivable. Overdrawn balances are unsecured and considered immediately due from the customer. Also included in consumer loans are advances made to taxpayers under our tax advance program. These loan balances generally fluctuate over the first half of each year due to the seasonal nature of these advances.
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, 2025 and December 31, 2024, the fair value of the loans held for sale amounted to approximately $3.6 million and $3.8 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, 2024 for further information on the criteria for classification as nonperforming.
March 31, 2025December 31, 2024
(In thousands)
Residential$31 $34 
Secured credit card2,022 2,536 
Total loans$2,053 $2,570 
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 accountholder 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, 2025December 31, 2024
Non-ClassifiedClassifiedNon-ClassifiedClassified
(In thousands)
Residential$7,369 $31 $6,841 $34 
Commercial2,571 — 2,585 — 
Installment6,247 — 5,439 — 
Consumer36,777 — 25,536 — 
Secured credit card6,049 2,022 6,532 2,536 
Total loans$59,013 $2,053 $46,933 $2,570 
Allowance for Credit Losses
Activity in the allowance for credit losses on our loan portfolio consisted of the following:
Three Months Ended March 31,
20252024
(In thousands)
Balance, beginning of period$17,542 $11,383 
Provision for loans11,127 4,788 
Loans charged off(6,347)(5,859)
Recoveries of loans previously charged off34 64 
Balance, end of period$22,356 $10,376