Loans and Finance Receivables and Allowance for Credit Losses

Loans and finance receivables consisted of the following as of December 31 (in thousands):



	2019		2018
Term loans	$	946,322	$	956,755
Lines of credit	277,843		188,199
Other loans and finance receivables ⁽¹⁾	14,244		—
Total Unpaid Principal Balance	1,238,409		1,144,954
Net deferred origination costs	26,903		24,453
Total loans and finance receivables	$	1,265,312	$	1,169,407


⁽¹⁾	Includes loans secured by equipment and our variable pay product.

As part of the business combination with Evolocity, on April 1, 2019 we acquired $36.8 million of term loans and finance receivables. No loans or finance receivables from third parties were purchased during 2019. During the year ended December 31, 2018, we paid $0.8 million to purchase term loans that we previously sold to a third party.

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 years ended December 31, 2019, 2018, and 2017 we purchased loans from our issuing bank partner in the amount of $409.6 million, $470.5 million, and $523.0 million respectively.

The change in the allowance for credit losses for the years ended December 31, consisted of the following (in thousands):



	2019			2018			2017
Balance at beginning of period	$	140,040		$	109,015		$	110,162
Recoveries of previously charged off amounts	18,920			13,179			17,199
Loans and finance receivables charged off	(181,196		)	(130,695		)	(171,272		)
Provision for credit losses	173,369			148,541			152,926
Allowance for credit losses at end of period	$	151,133		$	140,040		$	109,015

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 third-party debt buyers. The proceeds from these sales are recorded as a component of the recoveries of loans previously charged off. For the twelve months ended December 31, 2019, 2018 and 2017 loans sold accounted for $0.9 million, $1.0 million and $8.3 million, respectively, of recoveries of loans previously charged off.

As of December 31, 2019 and December 31, 2018, our off-balance sheet credit exposure related to undrawn line of credit balances was $306.2 million and $264.2 million, respectively. The related reserve on unfunded loan commitments was $7.2 million and $5.9 million as of December 31, 2019 and December 31, 2018, respectively. Net adjustments to the liability for unfunded loan commitments are included in general and administrative expense. Upon adoption of the new Current Expected Credit Loss (CECL) standard on January 1, 2020, the reserve on unfunded loan commitments will be eliminated and reversed into retained earnings as a transition adjustment.

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



	2019		2018
Current loans and finance receivables	$	1,098,064	$	1,031,449
Delinquent: paying (accrual status)	38,514		54,427
Delinquent: non-paying (non-accrual status)	101,831		59,078
Total	$	1,238,409	$	1,144,954

The portion of the allowance for credit losses attributable to current loans and finance receivables was $71.0 million and $85.7 million as of December 31, 2019 and December 31, 2018, respectively, while the portion of the allowance for credit losses attributable to delinquent loans and finance receivables was $80.1 million and $54.3 million as of December 31, 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 December 31, 2019 and December 31, 2018 (in thousands):



	2019		2018
By delinquency status:
Current loans and finance receivables	$	1,098,064	$	1,031,449
1-14 calendar days past due	28,375		27,655
15-29 calendar days past due	17,383		14,665
30-59 calendar days past due	25,067		21,470
60-89 calendar days past due	22,004		19,031
90 + calendar days past due	47,516		30,684
Total unpaid principal balance	$	1,238,409	$	1,144,954