Loans Held for Investment and Allowance for Loan Losses

Loans held for investment consisted of the following as of September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016		December 31, 2015
Term loans	$	783,803	$	482,596
Lines of credit	105,500		61,194
Total unpaid principal balance	889,303		543,790
Net deferred origination costs	16,024		8,952
Total loans held for investment	$	905,327	$	552,742

On June 15, 2016, we paid $6.7 million to purchase term loans that we previously sold to a third party which are included in the unpaid principal balance of loans held for investment on the unaudited condensed consolidated balance sheets at September 30, 2016.

We include both loans we originate and loans funded by our issuing bank partner and later purchased by us as part of our originations. During the three months ended September 30, 2016 and 2015, we purchased such loans in the amount of $147.3 million and $56.1 million, respectively. During the nine months ended September 30, 2016 and 2015, we purchased such loans in the amount of $381.0 million and $159.6 million, respectively.

The activity in the allowance for loan losses for the three and nine months ended September 30, 2016 and 2015 consisted of the following (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Balance at beginning of period	$	73,849		$	53,052		$	53,311		$	49,804
Provision for loan losses	36,586			16,239			94,294			54,865
Loans charged off	(25,268		)	(18,839		)	(65,411		)	(57,853		)
Recoveries of loans previously charged off	2,201			2,135			5,174			5,771
Allowance for loan losses at end of period	$	87,368		$	52,587		$	87,368		$	52,587

When loans are charged-off, we may continue to attempt to recover amounts from the respective borrowers and guarantors, or pursue our rights through formal legal action. Alternatively, we may sell such 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 September 30, 2016 and 2015, previously charged-off loans sold accounted for $1.2 million and $1.5 million, respectively, of recoveries of loans previously charged off. For the nine months ended September 30, 2016 and 2015, previously charged-off loans sold accounted for $3.1 million and $4.4 million, respectively, of recoveries of loans previously charged off.

As of September 30, 2016 and December 31, 2015, our off-balance sheet credit exposure related to the undrawn line of credit balances was $149.6 million and $89.1 million, respectively. The related accrual for unfunded loan commitments was $3.8 million and $4.2 million as of September 30, 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 contains information, on a combined basis, regarding the unpaid principal balance of loans we originated and the amortized cost of loans purchased from third parties other than our issuing bank partner related to non-delinquent, paying delinquent and non-paying delinquent loans as of September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016		December 31, 2015
Non-delinquent loans	$	810,531	$	486,729
Delinquent: paying (accrual status)	46,736		28,192
Delinquent: non-paying (non-accrual status)	32,036		28,869
Total	$	889,303	$	543,790

The portion of the allowance for loan losses attributable to non-delinquent loans was $45.3 million and $27.0 million, as of September 30, 2016 and December 31, 2015, respectively, while the portion of the allowance for loan losses attributable to delinquent loans was $42.1 million and $26.3 million as of September 30, 2016 and December 31, 2015, respectively.

The following table contains information, on a combined basis, regarding the unpaid principal balance of loans we originated and the amortized cost of loans purchased from third parties other than our issuing bank partner by delinquency status as of September 30, 2016 and December 31, 2015 (in thousands):



	September 30, 2016		December 31, 2015
By delinquency status:
Non-delinquent loans	$	810,531	$	486,729
1-14 calendar days past due	23,743		21,360
15-29 calendar days past due	12,045		8,703
30-59 calendar days past due	21,172		10,347
60-89 calendar days past due	12,437		7,443
90 + calendar days past due	9,375		9,208
Total unpaid principal balance	$	889,303	$	543,790