Loans, Allowance for Loan Losses and Loans Held for Sale

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Loans, Allowance for Loan Losses and Loans Held for Sale

Loans, Allowance for Loan Losses and Loans Held for Sale

Loans consisted of the following as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015		December 31, 2014
Term loans	$	508,848	$	466,386
Lines of credit	34,060		24,177
Total unpaid principal balance	542,908		490,563
Net deferred origination costs	13,513		13,544
Total loans	$	556,421	$	504,107

The activity in the allowance for loan losses for the three months ended March 31, 2015 and 2014 consisted of the following (in thousands):

	2015			2014
Balance at January 1	$	49,804		$	19,443
Provision for loan losses	23,101			16,579
Loans charged off	(17,864		)	(8,696		)
Recoveries of loans previously charged off	1,754			396
Allowance for loan losses at March 31	$	56,795		$	27,722

We originate most of the loans in our portfolio and also purchase loans from an issuing bank partner. During the three months ended March 31, 2015 and March 31, 2014 we purchased loans in the amount of $54.6 million and $34.0 million, respectively.

We sell previously charged-off loans to a third-party debt collector. The proceeds from these sales are recorded as a component of the recoveries of loans previously charged off. For the three months ended March 31, 2015 and 2014, previously charged-off loans sold accounted for $1.5 million and $0.3 million of recoveries of loans previously charged off, respectively.

The following table illustrates the loan balance related to non-delinquent, paying and non-paying delinquent loans and the corresponding allowance for loan losses as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015		December 31, 2014
	Unpaid Principal Balance		Unpaid Principal Balance
Non-delinquent loans	$	472,702	$	430,689
Delinquent: paying (accrual status)	47,711		40,049
Delinquent: non-paying (non-accrual status)	22,495		19,825
Total	$	542,908	$	490,563

The balance of the allowance for loan losses for non-delinquent loans was $22.5 million and $20.5 million as of March 31, 2015 and December 31, 2014, respectively, while the balance of the allowance for loan losses for delinquent loans was $34.3 million and $29.3 million as of March 31, 2015 and December 31, 2014, respectively.

The following table shows an aging analysis of loans by delinquency status as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015		December 31, 2014
By delinquency status:
Non-delinquent loans	$	472,702	$	430,689
1-14 calendar days past due	24,579		23,954
15-29 calendar days past due	10,876		9,462
30-59 calendar days past due	12,657		10,707
60-89 calendar days past due	10,885		7,724
90 + calendar days past due	11,209		8,027
Total unpaid principal balance	$	542,908	$	490,563