| CONSUMER RECEIVABLES |
4. 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 September 30, 2022 and December 31, 2021 and the consumer receivables activity, charge-off rates and aging by product for the three and nine months ended September 30, 2022 and 2021.
Consumer receivables consisted of the following:
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
Unsecured personal loan receivables |
$ |
— |
|
|
$ |
1 |
|
Secured personal loan receivables |
|
69,897 |
|
|
|
77,491 |
|
Loan receivables |
|
69,897 |
|
|
|
77,492 |
|
Instacash receivables |
|
67,191 |
|
|
|
62,783 |
|
Finance receivables |
|
137,088 |
|
|
|
140,275 |
|
Fees receivable |
|
10,982 |
|
|
|
8,366 |
|
Subscription receivables |
|
3,086 |
|
|
|
3,099 |
|
Deferred loan origination costs |
|
577 |
|
|
|
929 |
|
Accrued interest receivable |
|
985 |
|
|
|
1,072 |
|
Consumer receivables, before allowance for credit losses |
$ |
152,718 |
|
|
$ |
153,741 |
|
Changes in the allowance for losses on consumer receivables were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Beginning balance |
$ |
23,124 |
|
|
$ |
14,701 |
|
|
$ |
22,323 |
|
|
$ |
9,127 |
|
Provision for credit losses on receivables |
|
27,428 |
|
|
|
15,238 |
|
|
|
77,453 |
|
|
|
36,644 |
|
Receivables charged off |
|
(38,468 |
) |
|
|
(20,979 |
) |
|
|
(102,011 |
) |
|
|
(51,819 |
) |
Recoveries |
|
10,549 |
|
|
|
7,831 |
|
|
|
24,868 |
|
|
|
22,839 |
|
Ending balance |
$ |
22,633 |
|
|
$ |
16,791 |
|
|
$ |
22,633 |
|
|
$ |
16,791 |
|
Changes in the allowance for losses on finance receivables were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Beginning balance |
$ |
22,158 |
|
|
$ |
14,223 |
|
|
$ |
21,625 |
|
|
$ |
9,127 |
|
Provision for credit losses on receivables |
|
23,619 |
|
|
|
12,542 |
|
|
|
66,677 |
|
|
|
30,877 |
|
Finance receivables charged off |
|
(33,735 |
) |
|
|
(17,851 |
) |
|
|
(88,854 |
) |
|
|
(44,996 |
) |
Recoveries |
|
9,628 |
|
|
|
7,261 |
|
|
|
22,222 |
|
|
|
21,167 |
|
Ending balance |
$ |
21,670 |
|
|
$ |
16,175 |
|
|
$ |
21,670 |
|
|
$ |
16,175 |
|
Changes in the allowance for losses on fees receivable were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Beginning balance |
$ |
548 |
|
|
$ |
281 |
|
|
$ |
420 |
|
|
$ |
— |
|
Provision for credit losses on receivables |
|
2,553 |
|
|
|
1,671 |
|
|
|
6,758 |
|
|
|
3,563 |
|
Fees receivable charged off |
|
(3,246 |
) |
|
|
(2,039 |
) |
|
|
(8,731 |
) |
|
|
(4,247 |
) |
Recoveries |
|
744 |
|
|
|
433 |
|
|
|
2,152 |
|
|
|
1,030 |
|
Ending balance |
$ |
599 |
|
|
$ |
346 |
|
|
$ |
599 |
|
|
$ |
346 |
|
Changes in the allowance for losses on subscription receivables were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Beginning balance |
$ |
418 |
|
|
$ |
197 |
|
|
$ |
278 |
|
|
$ |
— |
|
Provision for credit losses on receivables |
|
1,256 |
|
|
|
1,025 |
|
|
|
4,018 |
|
|
|
2,204 |
|
Subscription receivables charged off |
|
(1,487 |
) |
|
|
(1,089 |
) |
|
|
(4,426 |
) |
|
|
(2,576 |
) |
Recoveries |
|
177 |
|
|
|
137 |
|
|
|
494 |
|
|
|
642 |
|
Ending balance |
$ |
364 |
|
|
$ |
270 |
|
|
$ |
364 |
|
|
$ |
270 |
|
The following is an assessment of the repayment performance of loans as of September 30, 2022 and December 31, 2021 and presents the contractual delinquency of the loans receivable portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
Current |
$ |
60,693 |
|
|
|
86.8 |
% |
|
$ |
66,514 |
|
|
|
85.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency: |
|
|
|
|
|
|
|
|
|
|
|
31 to 60 days |
|
5,370 |
|
|
|
7.7 |
% |
|
|
6,577 |
|
|
|
8.5 |
% |
61 to 90 days |
|
3,834 |
|
|
|
5.5 |
% |
|
|
4,401 |
|
|
|
5.7 |
% |
Total delinquency |
|
9,204 |
|
|
|
13.2 |
% |
|
|
10,978 |
|
|
|
14.2 |
% |
Loan receivables before allowance for loan losses |
$ |
69,897 |
|
|
|
100.0 |
% |
|
$ |
77,492 |
|
|
|
100.0 |
% |
The following is an assessment of the repayment performance of Instacash receivables as of September 30, 2022 and December 31, 2021 and presents the contractual delinquency of the Instacash receivables portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
Current |
$ |
60,241 |
|
|
|
89.7 |
% |
|
$ |
55,963 |
|
|
|
89.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency: |
|
|
|
|
|
|
|
|
|
|
|
31 to 60 days |
|
6,950 |
|
|
|
10.3 |
% |
|
|
6,820 |
|
|
|
10.9 |
% |
61 to 90 days |
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Total delinquency |
|
6,950 |
|
|
|
10.3 |
% |
|
|
6,820 |
|
|
|
10.9 |
% |
Instacash receivables before allowance for loan losses |
$ |
67,191 |
|
|
|
100.0 |
% |
|
$ |
62,783 |
|
|
|
100.0 |
% |
The following is an assessment of the repayment performance of fees receivable as of September 30, 2022 and December 31, 2021 and presents the contractual delinquency of the fees receivable portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
Current |
$ |
8,096 |
|
|
|
73.7 |
% |
|
$ |
6,682 |
|
|
|
79.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency: |
|
|
|
|
|
|
|
|
|
|
|
31 to 60 days |
|
2,886 |
|
|
|
26.3 |
% |
|
|
1,684 |
|
|
|
20.1 |
% |
61 to 90 days |
|
— |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
0.0 |
% |
Total delinquency |
|
2,886 |
|
|
|
26.3 |
% |
|
|
1,684 |
|
|
|
20.1 |
% |
Fees receivable before allowance for loan losses |
$ |
10,982 |
|
|
|
100.0 |
% |
|
$ |
8,366 |
|
|
|
100.0 |
% |
The following is an assessment of the repayment performance of subscription receivables as of September 30, 2022 and December 31, 2021 and presents the contractual delinquency of the subscription receivables portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
Current |
$ |
2,320 |
|
|
|
75.2 |
% |
|
$ |
2,227 |
|
|
|
71.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency: |
|
|
|
|
|
|
|
|
|
|
|
31 to 60 days |
|
442 |
|
|
|
14.3 |
% |
|
|
514 |
|
|
|
16.6 |
% |
61 to 90 days |
|
324 |
|
|
|
10.5 |
% |
|
|
358 |
|
|
|
11.6 |
% |
Total delinquency |
|
766 |
|
|
|
24.8 |
% |
|
|
872 |
|
|
|
28.2 |
% |
Subscription receivables before allowance for loan losses |
$ |
3,086 |
|
|
|
100.0 |
% |
|
$ |
3,099 |
|
|
|
100.0 |
% |
|