Loans and Finance Receivables Held for Investment and Allowance for Credit Losses

Loans and finance receivables held for investment consisted of the following as of June 30, 2019 and December 31, 2018 (in thousands):



	June 30, 2019		December 31, 2018
Term loans	$	936,053	$	956,755
Lines of credit	238,105		188,199
Other loans and finance receivables ⁽¹⁾	10,964		—
Total Unpaid Principal Balance	1,185,122		1,144,954
Net deferred origination costs	22,487		24,453
Total loans and finance receivables held for investment	$	1,207,609	$	1,169,407


⁽¹⁾	Includes secured equipment loans and merchant cash advances.

As part of the business combination with Evolocity, on April 1, 2019 we purchased $37.5 million of term loans and finance receivables. During the six months ended June 30, 2018, we paid $0.8 million to purchase term loans that we previously sold to a third party. No loans from third parties were purchased during 2019.

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 June 30, 2019 and 2018 we purchased loans from our issuing bank partner in the amount of $95.5 million and $109.3 million, respectively. During the six months ended June 30, 2019 and 2018 we purchased loans from our issuing bank partner in the amount of $207.1 million and $248.5 million, respectively.

The change in the allowance for credit losses for the three and six months ended June 30, 2019 and 2018 consisted of the following (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Balance at beginning of period	$	147,406		$	118,921		$	140,040		$	109,015
Recoveries of previously charged off amounts	4,523			3,206			8,437			6,551
Loans and finance receivables charged off	(49,141		)	(31,362		)	(88,980		)	(61,094		)
Provision for credit losses	42,951			33,293			86,242			69,586
Allowance for credit losses at end of period	$	145,739		$	124,058		$	145,739		$	124,058

When loans and finance receivables are charged off, we typically continue to attempt to recover amounts from the respective borrowers and guarantors, including, when we deem it appropriate, through formal legal action. Alternatively, we may 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. We did not sell any previously charged-off loans for the three and six months ended June 30, 2019. For the three and six months ended June 30, 2018 loans sold accounted for $0.2 million and $0.7 million of recoveries of loans previously charged off.

As of June 30, 2019 and December 31, 2018, our off-balance sheet credit exposure related to the undrawn line of credit balances was $282.2 million and $264.2 million, respectively. The related reserve on unfunded loan commitments was $6.3 million and $5.9 million as of June 30, 2019 and December 31, 2018, respectively. Net adjustments to the liability for unfunded loan commitments are included in general and administrative expense.

The following table contains information, on a combined basis, regarding the unpaid principal balance we originated related to non-delinquent, paying and non-paying delinquent loans and finance receivables as of June 30, 2019 and December 31, 2018 (in thousands):



	June 30, 2019		December 31, 2018
Current loans and finance receivables	$	1,060,465	$	1,031,449
Delinquent: paying (accrual status)	52,735		54,427
Delinquent: non-paying (non-accrual status)	71,922		59,078
Total	$	1,185,122	$	1,144,954

The portion of the allowance for credit losses attributable to current loans and finance receivables was $70.5 million and $85.7 million as of June 30, 2019 and December 31, 2018, respectively, while the portion of the allowance for credit losses attributable to delinquent loans and finance receivables was $75.3 million and $54.3 million as of June 30, 2019 and December 31, 2018, respectively.

The following table shows an aging analysis of the unpaid principal balance related to loans and finance receivables by delinquency status as of June 30, 2019 and December 31, 2018 (in thousands):



	June 30, 2019		December 31, 2018
By delinquency status:
Current loans and finance receivables	$	1,060,465	$	1,031,449
1-14 calendar days past due	23,798		27,655
15-29 calendar days past due	15,518		14,665
30-59 calendar days past due	23,931		21,470
60-89 calendar days past due	18,162		19,031
90 + calendar days past due	43,248		30,684
Total unpaid principal balance	$	1,185,122	$	1,144,954