MoneyLion Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Consumer Receivables

Consumer Receivables

3 Months Ended

Mar. 31, 2022

5. CONSUMER RECEIVABLES

The Company’s finance receivables consist of secured personal loans and principal amounts of Instacash advances. Accrued interest receivables represent the interest accrued on the loan receivables based upon the daily principal amount outstanding. Fees receivables represent the amounts due to the Company for tips and instant transfer fees related to the Instacash advance product. Subscription receivables represent the amounts billed to customers for subscription services. The credit quality and future repayment of consumer receivables are dependent upon the customer’s ability to perform under the terms of the agreement. Factors such as unemployment rates and housing values, among others, may impact the customer’s ability to perform under the loan or advance terms. When assessing provision for losses on consumer receivables, the Company takes into account the composition of the outstanding consumer receivables, charge-off rates to date and the forecasted principal loss rates. The tables below show consumer receivables balances as of March 31, 2022 and December 31, 2021 and the consumer receivables activity, charge-off rates and aging by product for the three months ended March 31, 2022 and 2021.

Consumer receivables consisted of the following:

	March 31,		December 31,
	2022		2021
Unsecured personal loan receivables	$	-	$	1
Secured personal loan receivables		71,610		77,491
Loan receivables		71,610		77,492
Instacash receivables		66,951		62,783
Finance receivables		138,561		140,275
Fees receivable		9,567		8,366
Membership receivables		3,408		3,099
Deferred loan origination costs		992		929
Accrued interest receivable		1,106		1,072
Receivables, before allowance for credit losses	$	153,634	$	153,741

Changes in the allowance for losses on consumer receivables were as follows:

	Three Months Ended March 31,
	2022			2021
Beginning balance	$	22,323		$	9,127
Provision for credit losses on receivables		23,044			5,708
Receivables charged off		(37,284	)		(14,436	)
Recoveries		14,208			9,828
Ending balance	$	22,291		$	10,227

Changes in the allowance for losses on finance receivables were as follows:

	Three Months Ended March 31,
	2022			2021
Beginning balance	$	21,625		$	9,127
Provision for credit losses on receivables		19,502			4,859
Finance receivables charged off		(32,958	)		(12,962	)
Recoveries		13,269			9,203
Ending balance	$	21,438		$	10,227

Changes in the allowance for losses on fees receivable were as follows:

	Three Months Ended March 31,
	2022			2021
Beginning balance	$	420		$	-
Provision for credit losses on receivables		2,001			615
Fees receivable charged off		(2,708	)		(948	)
Recoveries		779			333
Ending balance	$	492		$	-

Changes in the allowance for losses on subscription receivables were as follows:

	Three Months Ended March 31,
	2022			2021
Beginning balance	$	278		$	-
Provision for credit losses on receivables		1,541			234
Membership receivables charged off		(1,618	)		(526	)
Recoveries		160			292
Ending balance	$	361		$	-

The following is an assessment of the repayment performance of loans as of March 31, 2022 and December 31, 2021 and presents the contractual delinquency of the loans receivable portfolio:

	March 31, 2022					December 31, 2021
	Amount		Percent			Amount		Percent
Current	$	60,642		84.7	%	$	66,514		85.8	%

Delinquency:
31 to 60 days		5,887		8.2	%		6,577		8.5	%
61 to 90 days		5,081		7.1	%		4,401		5.7	%
Total delinquency		10,968		15.3	%		10,978		14.2	%
Loan receivables before allowance for loan losses	$	71,610		100.0	%	$	77,492		100.0	%

The following is an assessment of the repayment performance of Instacash receivables as of March 31, 2022 and December 31, 2021 and presents the contractual delinquency of the Instacash receivables portfolio:

	March 31, 2022					December 31, 2021
	Amount		Percent			Amount		Percent
Current	$	60,364		90.2	%	$	55,963		89.1	%

Delinquency:
31 to 60 days		6,587		9.8	%		6,820		10.9	%
61 to 90 days		-		0.0	%		-		0.0	%
Total delinquency		6,587		9.8	%		6,820		10.9	%
Instacash receivables before allowance for loan losses	$	66,951		100.0	%	$	62,783		100.0	%

The following is an assessment of the repayment performance of fees receivable as of March 31, 2022 and December 31, 2021 and presents the contractual delinquency of the fees receivable portfolio:

	March 31, 2022					December 31, 2021
	Amount		Percent			Amount		Percent
Current	$	7,725		80.7	%	$	6,682		79.9	%

Delinquency:
31 to 60 days		1,842		19.3	%		1,684		20.1	%
61 to 90 days		-		0.0	%		-		0.0	%
Total delinquency		1,842		19.3	%		1,684		20.1	%
Fees receivable before allowance for loan losses	$	9,567		100.0	%	$	8,366		100.0	%

The following is an assessment of the repayment performance of subscription receivables as of March 31, 2022 and December 31, 2021 and presents the contractual delinquency of the subscription receivables portfolio:

	March 31, 2022					December 31, 2021
	Amount		Percent			Amount		Percent
Current	$	2,486		72.9	%	$	2,227		71.8	%

Delinquency:
31 to 60 days		466		13.7	%		514		16.6	%
61 to 90 days		456		13.4	%		358		11.6	%
Total delinquency		922		27.1	%		872		28.2	%
Membership receivables before allowance for loan losses	$	3,408		100.0	%	$	3,099		100.0	%