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Finance Receivables (Tables)

9 Months Ended

Dec. 31, 2023

Schedule of finance receivables consisting of automobile finance installment Contracts and Direct Loans

Finance receivables held for investment, net consist of Contracts and Direct Loans and are detailed as follows:


	(In thousands)
	December 31, 2023		March 31, 2023
Finance receivables held for investment	$	—	$	128,170
Accrued interest receivable		—		1,932
Unearned dealer discounts		—		(4,286	)
Unearned insurance commissions and fees		—		(1,419	)
Unearned purchase price discount		—		(82	)
Finance receivables held for investment, net of unearned discounts and fees and accrued interest receivable		—		124,315
Allowance for credit losses		—		(17,396	)
Finance receivables held for investment, net	$	—	$	106,919

Finance receivables held for sale consist of Contracts and Direct LoansTableTextBlock

Finance receivables held for sale consist of Contracts and Direct Loans and are detailed as follows:


	(In thousands)
	December 31,			March 31,
	2023			2023
Finance receivables held for sale at amortized cost	$	69,763			-
Held for sale allowance		(19,457	)		-
Finance receivables held for sale at fair value	$	50,306		$	-

Schedule of selected information on entire comprise portfolio

Contracts and Direct Loans each comprise a portfolio segment which consists of groups of loans sharing common risk factors. The following tables present selected information on the entire portfolio of the Company:


	As of December 31,			As of March 31,
Contract Portfolio	2023			2023
Average APR		22.7	%		22.8	%
Average discount		6.4	%		6.8	%
Average term (months)		49			49
Number of active contracts		9,088			14,081


	As of December 31,			As of March 31,
Direct Loan Portfolio	2023			2023
Average APR		27.3	%		29.1	%
Average term (months)		33			28
Number of active contracts		2,485			5,322

Schedule of reconciliation of the changes in the allowance for credit losses

The following table sets forth a reconciliation of the changes in the allowance for credit losses under ASC 326 on Contracts and Direct Loans for the three and nine months ended December 31, 2023 and 2022 (in thousands):


	Three months ended December 31, 2023									Nine months ended December 31, 2023
	Contracts			Direct Loans			Total			Contracts			Direct Loans			Consolidated
Balance at beginning of period, prior to adoption of ASU 2016-13	$	12,189		$	1,068		$	13,257		$	16,265		$	1,131		$	17,396
Impact of adoption of ASU 2016-13		—			—			—			(562	)		772			210
Provision for credit losses (1)		1,588			183			1,771			12,713			2,110			14,823
Charge-offs		(3,041	)		(369	)		(3,410	)		(21,337	)		(3,495	)		(24,832	)
Recoveries		553			82			635			4,210			446			4,656
Reversal of allowance for credit losses (2)		(11,289	)		(964	)		(12,253	)		(11,289	)		(964	)		(12,253	)
Balance at December 31, 2023	$	—		$	—		$	—		$	—		$	—		$	—

	Three months ended December 31, 2022									Nine months ended December 31, 2022
	Contracts			Direct Loans			Total			Contracts			Direct Loans			Consolidated
Balance at beginning of period	$	5,088		$	2,003		$	7,091		$	1,960		$	989		$	2,949
Provision for credit losses		9,132			1,598			10,730			19,747			3,533			23,280
Charge-offs		(7,077	)		(1,056	)		(8,133	)		(17,266	)		(2,050	)		(19,316	)
Recoveries		1,240			24			1,264			3,942			97			4,039
Balance at December 31, 2022	$	8,383		$	2,569		$	10,952		$	8,383		$	2,569		$	10,952

(1)

Provision for credit losses and reversal of allowance for credit losses is presented net as "Provision for credit losses" in the Condensed Consolidated Statements of Income (Loss).

(2)

Amounts shown represents charge-off through October 31, 2023. Since November 1, 2023 charge-offs are included in "Fair value and other adjustment, net" in the Condensed Consolidated Statements of Income (Loss).

Schedule of table shows activity by origination year

The following table presents gross charge-offs and recoveries by receivable origination year for total portfolio:


	(In thousands)
	Three months ended December 31, 2023
	Gross Charge-offs		Gross Recoveries		Net Charge-offs
2024	$	88	$	—	$	88
2023		1,256		138		1,118
2022		1,294		216		1,078
2021		363		109		254
2020		215		42		173
Prior		194		130		64
Total	$	3,410	$	635	$	2,775


	(In thousands)
	Nine months ended December 31, 2023
	Gross Charge-offs		Gross Recoveries		Net Charge-offs
2024	$	113	$	—	$	113
2023		10,061		1,122		8,939
2022		9,448		1,496		7,952
2021		2,776		547		2,229
2020		1,209		506		703
Prior		1,225		985		240
Total	$	24,832	$	4,656	$	20,176

The following table presents gross charge-offs and recoveries by receivable origination year for Contract segment of portfolio:


	(In thousands)
	Three months ended December 31, 2023
	Gross Charge-offs		Gross Recoveries		Net Charge-offs
2024	$	88	$	—	$	88
2023		1,072		100		972
2022		1,124		185		939
2021		350		102		248
2020		214		38		176
Prior		193		128		65
Total	$	3,041	$	553	$	2,488


	(In thousands)
	Nine months ended December 31, 2023
	Gross Charge-offs		Gross Recoveries		Net Charge-offs
2024	$	113	$	—	$	113
2023		7,950		907		7,043
2022		8,127		1,320		6,807
2021		2,722		521		2,201
2020		1,201		489		712
Prior		1,224		973		251
Total	$	21,337	$	4,210	$	17,127

The following table presents gross charge-offs and recoveries by receivable origination year for Direct segment of portfolio:


	(In thousands)
	Three months ended December 31, 2023
	Gross Charge-offs		Gross Recoveries		Net Charge-offs
2024	$	—	$	—	$	—
2023		184		38		146
2022		170		31		139
2021		13		7		6
2020		1		4		(3	)
Prior		1		2		(1	)
Total	$	369	$	82	$	287


	(In thousands)
	Nine months ended December 31, 2023
	Gross Charge-offs		Gross Recoveries		Net Charge-offs
2024	$	—	$	—	$	—
2023		2,111		215		1,896
2022		1,321		176		1,145
2021		54		26		28
2020		8		17		(9	)
Prior		1		12		(11	)
Total	$	3,495	$	446	$	3,049

Schedule of an assessment of the credit quality by creditworthiness

The following table is an assessment of the credit quality by creditworthiness for finance receivables held for investment:


	(In thousands)
	December 31, 2023						March 31, 2023
	Contracts		Direct Loans		Total		Contracts		Direct Loans		Total
Performing accounts	$	—	$	—	$	—	$	101,856	$	16,926	$	118,782
Non-performing accounts		—		—		—		6,972		1,728		8,700
Total		—		—		—		108,828		18,654		127,482
Chapter 13 bankruptcy accounts		—		—		—		590		98		688
Finance receivables	$	—	$	—	$	—	$	109,418	$	18,752	$	128,170

Schedule of information regarding delinquency rates

The following tables present certain information regarding the delinquency rates experienced by the Company with respect to Contracts and Direct Loans, excluding Chapter 13 bankruptcy accounts:


	Contracts
	(In thousands, except percentages)
	Balance Outstanding		30 – 59 days			60 – 89 days			90 – 119 days			120+		Total
December 31, 2023	$	62,664	$	7,741		$	2,390		$	1,353		$	—	$	11,484
				12.35	%		3.81	%		2.16	%	0.00%			18.33	%

March 31, 2023	$	108,828	$	10,083		$	3,274		$	3,698		$	—	$	17,055
				9.27	%		3.01	%		3.40	%	0.00%			15.67	%


	Direct Loans
	(In thousands, except percentages)
	Balance Outstanding		30 – 59 days			60 – 89 days			90 – 119 days			120+		Total
December 31, 2023	$	8,319	$	1,050		$	310		$	201		$	—	$	1,561
				12.62	%		3.73	%		2.42	%	0.00%			18.76	%

March 31, 2023	$	18,654	$	1,448		$	654		$	1,074		$	—	$	3,176
				7.76	%		3.51	%		5.76	%	0.00%			17.03	%