The following table shows the major classification of loans, inclusive of capitalized loan origination costs, at December 31, 2020 and 2019.

	As of December 31, 2020						As of December 31, 2019
(Dollars in thousands)	Amount			As a Percent of Gross Loans			Amount			As a Percent of Gross Loans
Recreation	$	792,686			65	%	$	713,332			62	%
Home improvement		334,033			27			247,324			21
Commercial		65,327			5			69,767			6
Medallion		37,768			3			130,432			11
Strategic partnership		24			—			—			—
Total gross loans		1,229,838			100	%		1,160,855			100	%
Allowance for loan losses		(57,548	)					(46,093	)
Total net loans	$	1,172,290					$	1,114,762

The following tables show the activity of the gross loans for the twelve months ended December 31, 2020 and 2019.

Twelve Months Ended December 31, 2020 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Strategic Partnership			Total
Gross loans – December 31, 2019	$	713,332		$	247,324		$	69,767		$	130,432		$	—		$	1,160,855
Loan originations		294,885			193,098			7,575			—			1,663			497,221
Principal payments, sales, and maturities		(187,989	)		(105,813	)		(13,183	)		(13,207	)		(1,639	)		(321,831	)
Charge-offs, net		(14,457	)		(1,229	)		(28	)		(42,648	)		—			(58,362	)
Transfer to loan collateral in process of foreclosure, net		(14,871	)		—			—			(32,383	)		—			(47,254	)
Amortization of origination costs		(7,809	)		1,910			8			(131	)		—			(6,022	)
Amortization of loan premium		(191	)		(320	)		—			(2,531	)		—			(3,042	)
FASB origination costs, net		9,786			(937	)		—			36			—			8,885
Paid-in-kind interest		—			—			1,188			—			—			1,188
Transfer to other foreclosed property		—			—			—			(1,800	)		—			(1,800	)
Gross loans – December 31, 2020	$	792,686		$	334,033		$	65,327		$	37,768		$	24		$	1,229,838

Twelve Months Ended December 31, 2019 (Dollars in thousands)	Recreation			Home Improvement			Commercial			Medallion			Total
Gross loans – December 31, 2018	$	587,038		$	183,155		$	64,083		$	183,606		$	1,017,882
Loan originations		301,403			142,112			18,578			—			462,093
Principal payments, sales, and maturities		(146,873	)		(76,157	)		(13,553	)		(15,070	)		(251,653	)
Charge-offs, net		(17,419	)		(786	)		(819	)		(18,664	)		(37,688	)
Transfer to loan collateral in process of foreclosure, net		(14,512	)		—			—			(16,836	)		(31,348	)
Amortization of origination costs		(6,428	)		1,561			34			(119	)		(4,952	)
Amortization of loan premium		(247	)		(416	)		—			(2,626	)		(3,289	)
FASB origination costs, net		10,370			(2,145	)		610			141			8,976
Paid-in-kind interest		—			—			834			—			834
Gross loans – December 31, 2019	$	713,332		$	247,324		$	69,767		$	130,432		$	1,160,855

The following table sets forth the activity in the allowance for loan losses for the twelve months ended December 31, 2020 and 2019.

	Twelve Months Ended
(Dollars in thousands)	December 31, 2020			December 31, 2019
Allowance for loan losses – beginning balance	$	46,093		$	36,395
Charge-offs
Recreation		(23,543	)		(24,433	)
Home improvement		(2,909	)		(2,504	)
Commercial		(31	)		(819	)
Medallion		(49,361	)		(22,205	)
Total charge-offs		(75,844	)		(49,961	)
Recoveries
Recreation		9,086			7,014
Home improvement		1,680			1,718
Commercial		3			—
Medallion		6,713			3,541
Total recoveries		17,482			12,273
Net charge-offs ⁽¹⁾		(58,362	)		(37,688	)
Provision for loan losses		69,817			47,386
Allowance for loan losses – ending balance ^{(2) (3)}	$	57,548		$	46,093

The following tables set forth the allowance for loan losses by type as of December 31, 2020 and 2019.

December 31, 2020 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	27,348		48	%		3.45	%		378.20	%
Home improvement		5,157		9			1.54		NM
Commercial		—		—			—			—
Medallion		25,043		43			66.31			68.01
Total	$	57,548		100	%		4.68	%		93.17	%

December 31, 2019 (Dollars in thousands)	Amount		Percentage of Allowance			Allowance as a Percent of Loan Category			Allowance as a Percent of Nonaccrual
Recreation	$	18,075		39	%		2.53	%		228.25	%
Home improvement		2,608		6			1.05		NM
Commercial		—		—			—			—
Medallion		25,410		55			19.48			389.84
Total	$	46,093		100	%		3.97	%		174.04	%

The following table presents total nonaccrual loans and foregone interest, substantially all of which is in the medallion portfolio. The fluctuation in nonaccrual interest foregone is due to past due loans and market conditions.

	December 31,
(Dollars in thousands)	2020			2019			2018
Total nonaccrual loans	$	61,767		$	26,484		$	34,877
Interest foregone for the year		3,311			2,152			1,153
Amount of foregone interest applied to principal for the year		602			254			535
Interest foregone life-to-date		5,252			2,744			1,952
Amount of foregone interest applied to principal life-to-date		792			471			1,214
Percentage of nonaccrual loans to gross loan portfolio		5	%		2	%		3	%
Percentage of allowance for loan losses to nonaccrual loans		93			174			104

The following tables present the performance status of loans as of December 31, 2020 and 2019.

December 31, 2020 (Dollars in thousands)	Performing		Nonperforming			Total		Percentage of Nonperforming to Total
Recreation	$	785,047	$	7,639		$	792,686		0.96	%
Home improvement		333,862		171			334,033		0.05
Commercial		48,731		16,596			65,327		25.40
Medallion		—		37,768	⁽¹⁾		37,768		100.00
Strategic partnership		24		—			24		0.00
Total	$	1,167,664	$	62,174	⁽²⁾	$	1,229,838		5.06	%

December 31, 2019 (Dollars in thousands)	Performing		Nonperforming			Total		Percentage of Nonperforming to Total
Recreation	$	705,070	$	8,262		$	713,332		1.16	%
Home improvement		247,139		185			247,324		0.07
Commercial		57,905		11,862			69,767		17.00
Medallion		88,248		42,184			130,432		32.34
Total	$	1,098,362	$	62,493	⁽²⁾	$	1,160,855		5.38	%

For those performing loans aged under 90 days past due, there is a possibility that their delinquency status will continue to deteriorate and they will subsequently be placed on nonaccrual status and be reserved for, and as such, deemed nonperforming.

The following tables provide additional information on attributes of the nonperforming loan portfolio as of December 31, 2020 and 2019, all of which had an allowance recorded against the principal balance.

	December 31, 2020						December 31, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With an allowance recorded
Recreation	$	7,639	$	7,639	$	264	$	8,262	$	8,262	$	329
Home improvement		171		171		3		185		185		3
Commercial		16,596		16,600		—		11,862		11,867		—
Medallion		37,768		38,368		25,043		42,184		42,650		14,824
Total nonperforming loans with an allowance	$	62,174	$	62,778	$	25,310	$	62,493	$	62,964	$	15,156

	For the Twelve Months Ended
	December 31, 2020				December 31, 2019
(Dollars in thousands)	Average Investment Recorded		Interest Income (Expense) Recognized		Average Investment Recorded		Interest Income (Expense) Recognized
With an allowance recorded
Recreation	$	7,949	$	560	$	8,317	$	471
Home improvement		172		2		185		—
Commercial		16,884		123		7,886		392
Medallion		40,928		465		44,721		346
Total nonperforming loans with an allowance	$	65,933	$	1,150	$	61,109	$	1,209

The following tables show the aging of all loans as of December 31, 2020 and 2019.

	Days Past Due												Recorded Investment
December 31, 2020 (Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total ⁽¹⁾		90 Days and Accruing
Recreation	$	22,058	$	7,582	$	5,343	$	34,983	$	732,391	$	767,374	$	—
Home improvement		813		218		170		1,201		335,684		336,885		—
Commercial		—		—		75		75		65,265		65,340		—
Medallion		2,019		973		1,290		4,282		31,871		36,153		—
Strategic partnership		—		—		—		—		24		24		—
Total	$	24,890	$	8,773	$	6,878	$	40,541	$	1,165,235	$	1,205,776	$	—

	Days Past Due												Recorded Investment
December 31, 2019 (Dollars in thousands)	30-59		60-89		90 +		Total		Current		Total ⁽¹⁾		90 Days and Accruing
Recreation	$	27,357	$	8,426	$	5,800	$	41,583	$	648,227	$	689,810	$	—
Home improvement	931		427		184			1,542		249,288		250,830		—
Commercial		—		—		107		107		69,660		69,767		—
Medallion		12,491		2,118		2,572		17,181		109,106		126,287		—
Total	$	40,779	$	10,971	$	8,663	$	60,413	$	1,076,281	$	1,136,694	$	—

(1)Excludes loan premiums of $5,758 resulting from purchase price accounting and $18,403 of capitalized loan origination costs.

The Company estimates that the weighted average loan-to-value ratio of the medallion loans was approximately 327% and 190% as of December 31, 2020 and 2019.

The following table shows the TDR’s which the Company entered into during the year ended December 31, 2020.

During the twelve months ended December 31, 2020, five medallion loans modified as troubled debt restructurings were in default and had an investment value of $738,000 as of December 31, 2020, net of $331,000 of an allowance for loan loss, 43 recreation loans modified as troubled debt restructuring were in default and had an investment value of $433,000 as of December 31, 2020, net of a $15,000 allowance for loan losses, and no commercial loans modified as trouble debt restructurings were in default.

The following table shows the TDR’s which the Company entered into during the year ended December 31, 2019.

During the year ended December 31, 2019, four medallion loans modified as a troubled debt restructurings were in default and had an investment value of $1,023,000 as of December 31, 2019, net of $428,000 of an allowance for loan loss, and 213 recreation loans modified as troubled debt restructurings were in default and had an investment value of $1,905,000 as of December 31, 2019, net of a $76,000 allowance for loan losses.

The following tables show the activity of the loan collateral in process of foreclosure, which relates only to the recreation and medallion loans, for the twelve months ended December 31, 2020 and 2019.

Twelve Months Ended December 31, 2020 (Dollars in thousands)	Recreation			Medallion			Total
Loan collateral in process of foreclosure – December 31, 2019	$	1,476		$	51,235		$	52,711
Transfer from loans, net		14,871			32,403			47,274
Sales		(7,512	)		(300	)		(7,812	)
Cash payments received		—			(5,687	)		(5,687	)
Collateral valuation adjustments		(7,403	)		(24,523	)		(31,926	)
Loan collateral in process of foreclosure – December 31, 2020	$	1,432		$	53,128		$	54,560

Twelve Months Ended December 31, 2019 (Dollars in thousands)	Recreation			Medallion			Total
Loan collateral in process of foreclosure – December 31, 2018	$	1,503		$	47,992		$	49,495
Transfer from loans, net		14,512			16,836			31,348
Sales		(7,591	)		(1,515	)		(9,106	)
Cash payments received		—			(7,697	)		(7,697	)
Collateral valuation adjustments		(6,948	)		(4,381	)		(11,329	)
Loan collateral in process of foreclosure – December 31, 2019	$	1,476		$	51,235		$	52,711