Finance Receivables, Credit Quality Information, and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Net finance receivables for the periods indicated consisted of the following:

In thousands	June 30, 2021		December 31, 2020
Small loans	$	380,780	$	403,062
Large loans		789,743		715,210
Automobile loans		2,303		3,889
Retail loans		10,561		14,098
Net finance receivables	$	1,183,387	$	1,136,259

Summary of Financing Receivable Credit Quality Indicators

Net finance receivables by product, FICO band, and origination year as of June 30, 2021 are as follows:

	Net Finance Receivables by Origination Year
In thousands	2021 (1)		2020		2019		2018		2017		Prior		Total Net Finance Receivables
Small Loans:
FICO Band
1	$	41,916	$	31,146	$	6,445	$	613	$	80	$	20	$	80,220
2		25,323		16,699		2,596		144		15		5		44,782
3		27,385		17,797		2,561		144		8		1		47,896
4		30,105		19,538		2,532		134		10		3		52,322
5		30,236		22,337		2,849		94		4		2		55,522
6		50,026		44,312		5,587		106		5		2		100,038
Total small loans	$	204,991	$	151,829	$	22,570	$	1,235	$	122	$	33	$	380,780
Large Loans:
FICO Band
1	$	22,657	$	31,578	$	16,412	$	4,550	$	1,690	$	695	$	77,582
2		22,998		22,801		8,464		1,301		266		144		55,974
3		53,117		45,436		20,719		3,278		464		71		123,085
4		64,695		57,357		25,739		3,600		498		44		151,933
5		59,254		54,724		23,985		3,800		513		23		142,299
6		101,395		91,853		38,412		6,471		698		41		238,870
Total large loans	$	324,116	$	303,749	$	133,731	$	23,000	$	4,129	$	1,018	$	789,743
Automobile Loans:
FICO Band
1	$	—	$	—	$	—	$	—	$	590	$	362	$	952
2		—		—		—		—		223		174		397
3		—		—		—		—		366		146		512
4		—		—		—		—		146		56		202
5		—		—		—		—		40		78		118
6		—		—		—		—		77		45		122
Total automobile loans	$	—	$	—	$	—	$	—	$	1,442	$	861	$	2,303
Retail Loans:
FICO Band
1	$	9	$	235	$	445	$	84	$	4	$	4	$	781
2		15		151		348		57		3		2		576
3		350		564		352		70		6		4		1,346
4		717		1,313		716		198		7		2		2,953
5		623		1,015		619		172		15		1		2,445
6		653		1,059		596		144		5		3		2,460
Total retail loans	$	2,367	$	4,337	$	3,076	$	725	$	40	$	16	$	10,561
Total Loans:
FICO Band
1	$	64,582	$	62,959	$	23,302	$	5,247	$	2,364	$	1,081	$	159,535
2		48,336		39,651		11,408		1,502		507		325		101,729
3		80,852		63,797		23,632		3,492		844		222		172,839
4		95,517		78,208		28,987		3,932		661		105		207,410
5		90,113		78,076		27,453		4,066		572		104		200,384
6		152,074		137,224		44,595		6,721		785		91		341,490
Total loans	$	531,474	$	459,915	$	159,377	$	24,960	$	5,733	$	1,928	$	1,183,387

(1)	Includes loans originated during the six months ended June 30, 2021.

Amortized Cost Basis in Past-Due Loans

The contractual delinquency of the net finance receivables portfolio by product and aging for the periods indicated are as follows:

	June 30, 2021
	Small					Large					Automobile					Retail					Total
In thousands	$		%			$		%			$		%			$		%			$		%
Current	$	334,733		87.9	%	$	721,062		91.3	%	$	1,679		73.0	%	$	8,650		81.9	%	$	1,066,124		90.1	%
1 to 29 days past due		27,171		7.1	%		45,613		5.8	%		441		19.1	%		1,245		11.8	%		74,470		6.3	%
Delinquent accounts
30 to 59 days		5,800		1.5	%		8,409		1.0	%		61		2.6	%		218		2.0	%		14,488		1.2	%
60 to 89 days		4,079		1.1	%		5,318		0.7	%		32		1.4	%		185		1.8	%		9,614		0.8	%
90 to 119 days		2,705		0.7	%		3,331		0.4	%		18		0.8	%		62		0.6	%		6,116		0.5	%
120 to 149 days		3,017		0.8	%		2,833		0.4	%		31		1.3	%		80		0.8	%		5,961		0.5	%
150 to 179 days		3,275		0.9	%		3,177		0.4	%		41		1.8	%		121		1.1	%		6,614		0.6	%
Total delinquency	$	18,876		5.0	%	$	23,068		2.9	%	$	183		7.9	%	$	666		6.3	%	$	42,793		3.6	%
Total net finance receivables	$	380,780		100.0	%	$	789,743		100.0	%	$	2,303		100.0	%	$	10,561		100.0	%	$	1,183,387		100.0	%
Net finance receivables in nonaccrual status	$	9,660		2.5	%	$	10,608		1.3	%	$	140		6.1	%	$	361		3.4	%	$	20,769		1.8	%

	December 31, 2020
	Small					Large					Automobile					Retail					Total
In thousands	$		%			$		%			$		%			$		%			$		%
Current	$	342,744		85.0	%	$	633,806		88.6	%	$	2,729		70.2	%	$	11,188		79.3	%	$	990,467		87.2	%
1 to 29 days past due		32,615		8.1	%		50,145		7.0	%		864		22.2	%		1,718		12.2	%		85,342		7.5	%
Delinquent accounts
30 to 59 days		8,195		2.1	%		9,808		1.4	%		49		1.2	%		329		2.3	%		18,381		1.6	%
60 to 89 days		6,907		1.7	%		7,639		1.1	%		119		3.1	%		290		2.1	%		14,955		1.3	%
90 to 119 days		4,866		1.2	%		5,407		0.8	%		29		0.7	%		194		1.4	%		10,496		0.9	%
120 to 149 days		4,193		1.0	%		4,648		0.6	%		37		1.0	%		207		1.5	%		9,085		0.8	%
150 to 179 days		3,542		0.9	%		3,757		0.5	%		62		1.6	%		172		1.2	%		7,533		0.7	%
Total delinquency	$	27,703		6.9	%	$	31,259		4.4	%	$	296		7.6	%	$	1,192		8.5	%	$	60,450		5.3	%
Total net finance receivables	$	403,062		100.0	%	$	715,210		100.0	%	$	3,889		100.0	%	$	14,098		100.0	%	$	1,136,259		100.0	%
Net finance receivables in nonaccrual status	$	14,617		3.6	%	$	16,683		2.3	%	$	216		5.6	%	$	723		5.1	%	$	32,239		2.8	%

Summary Of Impact Of Allowance For Credit Losses During The period

The following table illustrates the impacts to the allowance for credit losses for the periods indicated:

	Three Months Ended (Unaudited)
In thousands	June 30, 2021			June 30, 2020
Beginning balance	$	139,600		$	142,400
COVID-19 reserve build (release)		(6,300	)		9,500
Other		6,100			(9,900	)
Ending balance	$	139,400		$	142,000
Allowance for credit losses as a percentage of net finance receivables		11.8	%		13.9	%

	Six Months Ended (Unaudited)
In thousands	June 30, 2021			June 30, 2020
Beginning balance	$	150,000		$	62,200
Impact of CECL adoption		—			60,100
COVID-19 reserve build (release)		(12,900	)		33,400
Other		2,300			(13,700	)
Ending balance	$	139,400		$	142,000
Allowance for credit losses as a percentage of net finance receivables		11.8	%		13.9	%

Reconciliation of Allowance for Credit Losses

The following is a reconciliation of the allowance for credit losses by product for the periods indicated:

In thousands	Small			Large			Automobile			Retail			Total
Beginning balance at April 1, 2021	$	53,673		$	83,345		$	604		$	1,978		$	139,600
Provision for credit losses		8,208			12,340			(76	)		77			20,549
Credit losses		(10,754	)		(10,612	)		(92	)		(350	)		(21,808	)
Recoveries		451			576			19			13			1,059
Ending balance at June 30, 2021	$	51,578		$	85,649		$	455		$	1,718		$	139,400
Net finance receivables at June 30, 2021	$	380,780		$	789,743		$	2,303		$	10,561		$	1,183,387
Allowance as percentage of net finance receivables at June 30, 2021		13.5	%		10.8	%		19.8	%		16.3	%		11.8	%

In thousands	Small			Large			Automobile			Retail			Total
Beginning balance at April 1, 2020	$	62,454		$	75,013		$	1,247		$	3,686		$	142,400
Provision for credit losses		11,514			15,513			15			457			27,499
Credit losses		(16,420	)		(11,694	)		(115	)		(845	)		(29,074	)
Recoveries		657			473			13			32			1,175
Ending balance at June 30, 2020	$	58,205		$	79,305		$	1,160		$	3,330		$	142,000
Net finance receivables at June 30, 2020	$	380,083		$	618,134		$	6,059		$	18,359		$	1,022,635
Allowance as percentage of net finance receivables at June 30, 2020		15.3	%		12.8	%		19.1	%		18.1	%		13.9	%

In thousands	Small			Large			Automobile			Retail			Total
Beginning balance at January 1, 2021	$	59,410		$	87,275		$	783		$	2,532		$	150,000
Provision for credit losses		12,969			19,183			(191	)		(50	)		31,911
Credit losses		(21,728	)		(21,872	)		(172	)		(806	)		(44,578	)
Recoveries		927			1,063			35			42			2,067
Ending balance at June 30, 2021	$	51,578		$	85,649		$	455		$	1,718		$	139,400
Net finance receivables at June 30, 2021	$	380,780		$	789,743		$	2,303		$	10,561		$	1,183,387
Allowance as percentage of net finance receivables at June 30, 2021		13.5	%		10.8	%		19.8	%		16.3	%		11.8	%

In thousands	Small			Large			Automobile			Retail			Total
Beginning balance at January 1, 2020	$	30,588		$	29,148		$	820		$	1,644		$	62,200
Impact of CECL adoption		24,185			33,550			599			1,766			60,100
Provision for credit losses		36,066			39,268			112			1,575			77,021
Credit losses		(33,948	)		(23,655	)		(426	)		(1,725	)		(59,754	)
Recoveries		1,314			994			55			70			2,433
Ending balance at June 30, 2020	$	58,205		$	79,305		$	1,160		$	3,330		$	142,000
Net finance receivables at June 30, 2020	$	380,083		$	618,134		$	6,059		$	18,359		$	1,022,635
Allowance as percentage of net finance receivables at June 30, 2020		15.3	%		12.8	%		19.1	%		18.1	%		13.9	%

Summary of TDR Net Finance Receivables And TDR Allowance For Credit Losses

The amount of TDR net finance receivables and the related TDR allowance for credit losses for the periods indicated are as follows:

	June 30, 2021				June 30, 2020
In thousands	TDR Net Finance Receivables		TDR Allowance for Credit Losses		TDR Net Finance Receivables		TDR Allowance for Credit Losses
Small loans	$	3,844	$	1,576	$	7,162	$	2,883
Large loans		13,441		4,278		17,825		6,085
Automobile loans		224		88		402		179
Retail loans		67		27		85		38
Total	$	17,576	$	5,969	$	25,474	$	9,185

Summary of Net Finance Receivables Modified and Classified as TDRs

The following tables provide the number and amount of net finance receivables modified and classified as TDRs during the periods presented:

	Three Months Ended
	June 30, 2021				June 30, 2020
Dollars in thousands	Number of Loans		TDR Net Finance Receivables (1)		Number of Loans		TDR Net Finance Receivables (1)
Small loans		581	$	1,085		888	$	2,796
Large loans		462		2,390		476		1,542
Automobile loans		—		—		—		—
Retail loans		3		4		4		12
Total		1,046	$	3,479		1,368	$	4,350

	Six Months Ended
	June 30, 2021				June 30, 2020
Dollars in thousands	Number of Loans		TDR Net Finance Receivables (1)		Number of Loans		TDR Net Finance Receivables (1)
Small loans		1,368	$	2,540		2,689	$	8,171
Large loans		1,083		5,508		1,753		5,461
Automobile loans		2		13		1		3
Retail loans		5		8		20		77
Total		2,458	$	8,069		4,463	$	13,712

(1) Represents the post-modification net finance receivables balance of loans that have been modified during the period and resulted in a TDR.

Summary of TDR Finance Receivables that Subsequently Defaulted

The following tables provide the number of accounts and balance of finance receivables that subsequently defaulted within the periods indicated (that were modified as a TDR in the preceding 12 months). The Company defines payment default as 90 days past due for this disclosure. The respective amounts and activity for the periods indicated are as follows:

	Three Months Ended
	June 30, 2021				June 30, 2020
Dollars in thousands	Number of Loans		TDR Net Finance Receivables (1)		Number of Loans		TDR Net Finance Receivables (1)
Small loans		140	$	267		365	$	638
Large loans		111		579		256		1,301
Automobile loans		—		—		—		—
Retail loans		1		1		7		12
Total		252	$	847		628	$	1,951

	Six Months Ended
	June 30, 2021				June 30, 2020
Dollars in thousands	Number of Loans		TDR Net Finance Receivables (1)		Number of Loans		TDR Net Finance Receivables (1)
Small loans		406	$	724		1,164	$	2,056
Large loans		270		1,372		694		3,506
Automobile loans		1		10		—		—
Retail loans		3		5		28		51
Total		680	$	2,111		1,886	$	5,613

(1) Only includes defaults occurring within 12 months of a loan being designated as a TDR. Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.