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

9 Months Ended

Sep. 30, 2021

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

In thousands	September 30, 2021		December 31, 2020
Small loans	$	419,602	$	403,062
Large loans		882,514		715,210
Automobile loans		1,757		3,889
Retail loans		10,360		14,098
Net finance receivables	$	1,314,233	$	1,136,259

Summary of Financing Receivable Credit Quality Indicators

Net finance receivables by product, FICO band, and origination year as of September 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	$	61,379	$	19,124	$	3,946	$	356	$	57	$	13	$	84,875
2		38,862		10,041		1,471		79		13		3		50,469
3		41,821		10,924		1,420		58		6		1		54,230
4		45,943		11,916		1,338		61		9		3		59,270
5		46,176		14,275		1,320		39		2		1		61,813
6		77,233		29,386		2,282		37		5		2		108,945
Total small loans	$	311,414	$	95,666	$	11,777	$	630	$	92	$	23	$	419,602
Large Loans:
FICO Band
1	$	33,140	$	25,015	$	12,933	$	3,554	$	1,353	$	583	$	76,578
2		33,815		17,377		6,421		915		166		110		58,804
3		84,068		34,859		15,600		2,208		276		49		137,060
4		101,488		44,787		19,907		2,472		312		29		168,995
5		96,468		43,664		18,653		2,645		289		22		161,741
6		169,591		74,697		30,066		4,556		378		48		279,336
Total large loans	$	518,570	$	240,399	$	103,580	$	16,350	$	2,774	$	841	$	882,514
Automobile Loans:
FICO Band
1	$	—	$	—	$	—	$	—	$	478	$	247	$	725
2		—		—		—		—		178		119		297
3		—		—		—		—		292		99		391
4		—		—		—		—		110		39		149
5		—		—		—		—		34		63		97
6		—		—		—		—		67		31		98
Total automobile loans	$	—	$	—	$	—	$	—	$	1,159	$	598	$	1,757
Retail Loans:
FICO Band
1	$	22	$	186	$	323	$	45	$	2	$	4	$	582
2		34		116		237		29		1		1		418
3		721		452		239		35		6		4		1,457
4		1,217		1,063		517		115		5		2		2,919
5		1,091		844		483		96		9		1		2,524
6		1,078		864		440		73		3		2		2,460
Total retail loans	$	4,163	$	3,525	$	2,239	$	393	$	26	$	14	$	10,360
Total Loans:
FICO Band
1	$	94,541	$	44,325	$	17,202	$	3,955	$	1,890	$	847	$	162,760
2		72,711		27,534		8,129		1,023		358		233		109,988
3		126,610		46,235		17,259		2,301		580		153		193,138
4		148,648		57,766		21,762		2,648		436		73		231,333
5		143,735		58,783		20,456		2,780		334		87		226,175
6		247,902		104,947		32,788		4,666		453		83		390,839
Total loans	$	834,147	$	339,590	$	117,596	$	17,373	$	4,051	$	1,476	$	1,314,233

(1)	Includes loans originated during the nine months ended September 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:

	September 30, 2021
	Small					Large					Automobile					Retail					Total
In thousands	$		%			$		%			$		%			$		%			$		%
Current	$	355,777		84.7	%	$	791,046		89.6	%	$	1,223		69.6	%	$	8,429		81.4	%	$	1,156,475		88.0	%
1 to 29 days past due		35,897		8.6	%		58,945		6.7	%		391		22.3	%		1,244		12.0	%		96,477		7.3	%
Delinquent accounts
30 to 59 days		8,791		2.1	%		11,130		1.3	%		75		4.2	%		166		1.6	%		20,162		1.6	%
60 to 89 days		6,991		1.7	%		7,906		0.9	%		21		1.2	%		157		1.5	%		15,075		1.1	%
90 to 119 days		5,390		1.3	%		5,636		0.6	%		38		2.2	%		138		1.3	%		11,202		0.9	%
120 to 149 days		3,760		0.9	%		4,310		0.5	%		5		0.3	%		101		1.0	%		8,176		0.6	%
150 to 179 days		2,996		0.7	%		3,541		0.4	%		4		0.2	%		125		1.2	%		6,666		0.5	%
Total delinquency	$	27,928		6.7	%	$	32,523		3.7	%	$	143		8.1	%	$	687		6.6	%	$	61,281		4.7	%
Total net finance receivables	$	419,602		100.0	%	$	882,514		100.0	%	$	1,757		100.0	%	$	10,360		100.0	%	$	1,314,233		100.0	%
Net finance receivables in nonaccrual status	$	13,884		3.3	%	$	16,612		1.9	%	$	83		4.7	%	$	452		4.4	%	$	31,031		2.4	%

	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	September 30, 2021			September 30, 2020
Beginning balance	$	139,400		$	142,000
COVID-19 reserve release		(2,000	)		(1,500	)
General reserve build due to portfolio change		12,700			3,500
Ending balance	$	150,100		$	144,000
Allowance for credit losses as a percentage of net finance receivables		11.4	%		13.6	%

	Nine Months Ended (Unaudited)
In thousands	September 30, 2021			September 30, 2020
Beginning balance	$	150,000		$	62,200
Impact of CECL adoption		—			60,100
COVID-19 reserve build (release)		(14,900	)		31,900
General reserve build (release) due to portfolio change		15,000			(10,200	)
Ending balance	$	150,100		$	144,000
Allowance for credit losses as a percentage of net finance receivables		11.4	%		13.6	%

Reconciliation of Allowance for Credit Losses

The following is a reconciliation of the allowance for credit losses by product for the three and nine months ended September 30, 2021 and 2020:

In thousands	Small			Large			Automobile			Retail			Total
Beginning balance at July 1, 2021	$	51,578		$	85,649		$	455		$	1,718		$	139,400
Provision for credit losses		13,936			12,195			(101	)		66			26,096
Credit losses		(8,190	)		(7,897	)		(62	)		(232	)		(16,381	)
Recoveries		462			475			27			21			985
Ending balance at September 30, 2021	$	57,786		$	90,422		$	319		$	1,573		$	150,100
Net finance receivables at September 30, 2021	$	419,602		$	882,514		$	1,757		$	10,360		$	1,314,233
Allowance as percentage of net finance receivables at September 30, 2021		13.8	%		10.2	%		18.2	%		15.2	%		11.4	%

In thousands	Small			Large			Automobile			Retail			Total
Beginning balance at July 1, 2020	$	58,205		$	79,305		$	1,160		$	3,330		$	142,000
Provision for credit losses		9,662			12,507			(102	)		22			22,089
Credit losses		(11,549	)		(9,331	)		(85	)		(409	)		(21,374	)
Recoveries		698			521			22			44			1,285
Ending balance at September 30, 2020	$	57,016		$	83,002		$	995		$	2,987		$	144,000
Net finance receivables at September 30, 2020	$	382,785		$	655,932		$	4,892		$	15,945		$	1,059,554
Allowance as percentage of net finance receivables at September 30, 2020		14.9	%		12.7	%		20.3	%		18.7	%		13.6	%

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		26,905			31,378			(292	)		16			58,007
Credit losses		(29,918	)		(29,769	)		(234	)		(1,038	)		(60,959	)
Recoveries		1,389			1,538			62			63			3,052
Ending balance at September 30, 2021	$	57,786		$	90,422		$	319		$	1,573		$	150,100
Net finance receivables at September 30, 2021	$	419,602		$	882,514		$	1,757		$	10,360		$	1,314,233
Allowance as percentage of net finance receivables at September 30, 2021		13.8	%		10.2	%		18.2	%		15.2	%		11.4	%

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		45,729			51,774			10			1,597			99,110
Credit losses		(45,497	)		(32,986	)		(511	)		(2,134	)		(81,128	)
Recoveries		2,011			1,516			77			114			3,718
Ending balance at September 30, 2020	$	57,016		$	83,002		$	995		$	2,987		$	144,000
Net finance receivables at September 30, 2020	$	382,785		$	655,932		$	4,892		$	15,945		$	1,059,554
Allowance as percentage of net finance receivables at September 30, 2020		14.9	%		12.7	%		20.3	%		18.7	%		13.6	%

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:

	September 30, 2021				September 30, 2020
In thousands	TDR Net Finance Receivables		TDR Allowance for Credit Losses		TDR Net Finance Receivables		TDR Allowance for Credit Losses
Small loans	$	3,564	$	1,411	$	6,006	$	2,403
Large loans		13,201		4,154		16,446		5,775
Automobile loans		189		61		352		158
Retail loans		63		20		79		35
Total	$	17,017	$	5,646	$	22,883	$	8,371

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
	September 30, 2021				September 30, 2020
Dollars in thousands	Number of Loans		TDR Net Finance Receivables (1)		Number of Loans		TDR Net Finance Receivables (1)
Small loans		511	$	1,008		683	$	2,183
Large loans		450		2,524		431		1,359
Automobile loans		—		—		—		—
Retail loans		1		2		6		19
Total		962	$	3,534		1,120	$	3,561

	Nine Months Ended
	September 30, 2021				September 30, 2020
Dollars in thousands	Number of Loans		TDR Net Finance Receivables (1)		Number of Loans		TDR Net Finance Receivables (1)
Small loans		1,879	$	3,548		3,372	$	10,353
Large loans		1,533		8,032		2,184		6,821
Automobile loans		2		13		1		3
Retail loans		6		10		26		96
Total		3,420	$	11,603		5,583	$	17,273

(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
	September 30, 2021				September 30, 2020
Dollars in thousands	Number of Loans		TDR Net Finance Receivables (1)		Number of Loans		TDR Net Finance Receivables (1)
Small loans		286	$	539		342	$	619
Large loans		214		1,100		214		1,045
Automobile loans		—		—		—		—
Retail loans		2		4		3		3
Total		502	$	1,643		559	$	1,667

	Nine Months Ended
	September 30, 2021				September 30, 2020
Dollars in thousands	Number of Loans		TDR Net Finance Receivables (1)		Number of Loans		TDR Net Finance Receivables (1)
Small loans		692	$	1,263		1,506	$	2,675
Large loans		484		2,472		908		4,551
Automobile loans		1		10		—		—
Retail loans		5		9		31		54
Total		1,182	$	3,754		2,445	$	7,280

(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.