Loans Held for Investment and Allowance for Loan Losses

3 Months Ended

Mar. 31, 2016

Loans Held for Investment and Allowance for Loan Losses

Loans held for investment consisted of the following as of March 31, 2016 and December 31, 2015 (in thousands):



	March 31,		December 31,
	2016		2015
Term loans	$	573,076	$	482,596
Lines of credit	78,894		61,194
Total unpaid principal balance	651,970		543,790
Net deferred origination costs	11,419		8,952
Total loans held for investment	$	663,389	$	552,742

The activity in the allowance for loan losses for the three months ended March 31, 2016 and 2015 consisted of the following (in thousands):



	Three Months Ended March 31,
	2016			2015
Balance at beginning of period	$	53,311		$	49,804
Provision for loan losses	25,437			23,101
Loans charged off	(18,518		)	(17,864		)
Recoveries of loans previously charged off	1,477			1,754
Allowance for loan losses at end of period	$	61,707		$	56,795

We include both loans we originate and loans funded by our issuing bank partners and later purchased by us as part of our originations. During the three months ended March 31, 2016 and 2015, we purchased such loans in the amount of $103.6 million and $54.6 million, respectively.

We typically sell certain 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, 2016 and 2015, previously charged-off loans sold accounted for $1.0 million and $1.5 million, respectively, of recoveries of loans previously charged off.

As of March 31, 2016 and December 31, 2015, our off-balance sheet credit exposure related to the undrawn line of credit balances was $104.7 million and $89.1 million, respectively. The related accrual for unfunded loan commitments was $3.1 million and $4.2 million as of March 31, 2016 and December 31, 2015, respectively. Net adjustments to the accrual for unfunded loan commitments are included in general and administrative expenses.

The following table illustrates the unpaid principal balance related to non-delinquent, paying and non-paying delinquent loans as of March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016		December 31, 2015
Non-delinquent loans	$	596,791	$	486,729
Delinquent: paying (accrual status)	29,388		28,192
Delinquent: non-paying (non-accrual status)	25,791		28,869
Total	$	651,970	$	543,790

The portion of the allowance for loan losses attributable to non-delinquent loans was $33.6 million and $27.0 million, as of March 31, 2016 and December 31, 2015, respectively, while the portion of the allowance for loan losses attributable to delinquent loans was $28.1 million and $26.3 million as of March 31, 2016 and December 31, 2015, respectively.

The following table shows an aging analysis of the unpaid principal balance related to loans held for investment by delinquency status as of March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016		December 31, 2015
By delinquency status:
Non-delinquent loans	$	596,791	$	486,729
1-14 calendar days past due	17,698		21,360
15-29 calendar days past due	10,574		8,703
30-59 calendar days past due	10,765		10,347
60-89 calendar days past due	8,621		7,443
90 + calendar days past due	7,521		9,208
Total unpaid principal balance	$	651,970	$	543,790