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Loans to Bank Customers
 9 Months Ended
Sep. 30, 2020
Loans and Leases Receivable Disclosure [Abstract]  
Loans to Bank Customers Loans to Bank Customers
The following table presents total outstanding loans, gross of the related allowance for loan losses, and a summary of the related payment status:
30-59 Days Past Due60-89 Days Past Due90 Days or More Past DueTotal Past DueTotal Current or Less Than 30 Days Past DueTotal Outstanding
(In thousands)
September 30, 2020
Residential$— $— $— $— $3,821 $3,821 
Commercial— — — — 1,901 1,901 
Installment— 3 — 3 591 594 
Secured credit card862 597 821 2,280 12,469 14,749 
Total loans$862 $600 $821 $2,283 $18,782 $21,065 
Percentage of outstanding4.1 %2.9 %3.9 %10.8 %89.2 %100.0 %
December 31, 2019
Residential$1 $— $— $1 $4,530 $4,531 
Commercial— — — — 158 158 
Installment1 — — 1 1,246 1,247 
Secured credit card1,080 939 2,183 4,202 12,445 16,647 
Total loans$1,082 $939 $2,183 $4,204 $18,379 $22,583 
Percentage of outstanding4.8 %4.2 %9.7 %18.6 %81.4 %100.0 %
Nonperforming Loans
The following table presents the carrying value, gross of the related allowance for loan losses, of our nonperforming loans. See Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the criteria for classification as nonperforming.
September 30, 2020December 31, 2019
(In thousands)
Residential$250 $290 
Installment129 147 
Secured credit card821 2,183 
Total loans$1,200 $2,620 
Credit Quality Indicators
We closely monitor and assess the credit quality and credit risk of our loan portfolio on an ongoing basis. We continuously review and update loan risk classifications. We evaluate our loans using non-classified or classified as the primary credit quality indicator. Classified loans are those loans that have demonstrated credit weakness where we believe there is a heightened risk of principal loss, including all impaired loans. Classified loans are generally internally categorized as substandard, doubtful or loss, consistent with regulatory guidelines.
Our secured credit card portfolio is collateralized by cash deposits made by each cardholder in an amount equal to the user's available credit limit, which mitigates the risk of any significant credit losses we expect to incur.
The table below presents the carrying value, gross of the related allowance for loan losses, of our loans within the primary credit quality indicators related to our loan portfolio:
Note 6—Loans to Bank Customers (continued)
September 30, 2020December 31, 2019
Non-ClassifiedClassifiedNon-ClassifiedClassified
(In thousands)
Residential$3,571 $250 $4,241 $290 
Commercial1,901 — 158 — 
Installment455 139 1,058 189 
Secured credit card13,928 821 14,464 2,183 
Total loans$19,855 $1,210 $19,921 $2,662 
Impaired Loans and Troubled Debt Restructurings
When, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession for other than an insignificant period of time to a borrower that we would not otherwise consider, the related loan is classified as a Troubled Debt Restructuring, or TDR. Our TDR modifications involve an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk. As of September 30, 2020, none of our TDR modifications have been made in response to the COVID-19 pandemic.
The following table presents our impaired loans and loans that we modified as TDRs as of September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
Unpaid Principal BalanceCarrying ValueUnpaid Principal BalanceCarrying Value
(In thousands)
Residential$250 $188 $290 $221 
Installment139 104 160 48 
Allowance for Loan Losses
Activity in the allowance for loan losses consisted of the following:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(In thousands)
Balance, beginning of period$570 $970 $1,166 $1,144 
Provision for loans247 658 501 1,914 
Loans charged off(282)(112)(1,403)(1,661)
Recoveries of loans previously charged off107 42 378 161 
Balance, end of period$642 $1,558 $642 $1,558