The allowance for loan losses is based on Management's evaluation of the inherent risks and changes in the composition of the Company's loan portfolio. Management’s approach to estimating and evaluating the allowance for loan losses is on a total portfolio level based on historical loss trends, bankruptcy trends, the level of receivables at the balance sheet date, payment patterns and economic conditions primarily including, but not limited to, unemployment levels and gasoline prices. Historical loss trends are tracked on an on-going basis. The trend analysis includes statistical analysis of the correlation between loan date and charge off date, charge off statistics by the total loan portfolio, and charge off statistics by branch, division and state. Delinquency and bankruptcy filing trends are also tracked. If trends indicate an adjustment to the allowance for loan losses is warranted, Management will make what it considers to be appropriate adjustments. The level of receivables at the balance sheet date is reviewed and adjustments to the allowance for loan losses are made if Management determines increases or decreases in the level of receivables warrants an adjustment. The Company uses monthly unemployment statistics, and various other monthly or periodic economic statistics, published by departments of the U.S. government and other economic statistics providers to determine the economic component of the allowance for loan losses. Such allowance is, in the opinion of Management, sufficiently adequate for probable losses in the current loan portfolio. As the estimates used in determining the loan loss reserve are influenced by outside factors, such as consumer payment patterns and general economic conditions, there is uncertainty inherent in these estimates. Actual results could vary based on future changes in significant assumptions.

Management does not disaggregate the Company’s loan portfolio by loan class when evaluating loan performance. The total portfolio is evaluated for credit losses based on contractual delinquency and other economic conditions. The Company classifies delinquent accounts at the end of each month according to the number of installments past due at that time, based on the then-existing terms of the contract. Accounts are classified in delinquency categories based on the number of days past due. When three installments are past due, Management classifies the account as being 60-89 days past due; when four or more installments are past due, Management classifies the account as being 90 days or more past due. When a loan becomes five installments past due, it is charged off unless Management directs that it be retained as an active loan. In making this charge off evaluation, Management considers factors such as pending insurance, bankruptcy status and other indicators of collectability. In addition, no installment is counted as being past due if at least 80% of the contractual payment has been paid. In connection with any bankruptcy court-initiated repayment plan and as allowed by state regulatory authorities, the Company effectively resets the delinquency rating of each account to coincide with the court initiated repayment plan. The amount charged off is the unpaid balance less the unearned finance charges and the unearned insurance premiums, if applicable.

When a loan becomes 60 days or more past due based on its original terms, it is placed in nonaccrual status. At such time, the accrual of any additional finance charges is discontinued. Finance charges are then only recognized to the extent there is a loan payment received or when the account qualifies for return to accrual status. Nonaccrual loans return to accrual status when the loan becomes less than 60 days past due.

There were no loans 60 days or more past due and still accruing interest at September 30, 2017 or December 31, 2016. The Company’s principal balances on non-accrual loans by loan class as of September 30, 2017 and December 31, 2016 were as follows:

Loan Class	September 30, 2017	December 31, 2016

Consumer Loans	$ 23,218,568	$ 24,658,842
Real Estate Loans	1,357,452	1,374,941
Sales Finance Contracts	1,033,014	1,036,697
Total	$ 25,609,034	$ 27,070,480

An age analysis of principal balances on past due loans, segregated by loan class, as of September 30, 2017 and December 31, 2016 follows:

September 30, 2017	30-59 Days Past Due	60-89 Days Past Due	90 Days or More Past Due	Total Past Due Loans

Consumer Loans	$ 16,100,602	$ 8,079,807	$ 16,887,073	$ 41,067,482
Real Estate Loans	899,610	389,071	1,383,505	2,672,186
Sales Finance Contracts .....	755,206	345,121	904,809	2,005,136
Total	$ 17,755,418	$ 8,813,999	$ 19,175,389	$ 45,744,804

December 31, 2016	30-59 Days Past Due	60-89 Days Past Due	90 Days or More Past Due	Total Past Due Loans

Consumer Loans	$ 16,447,739	$ 9,233,306	$ 17,290,149	$ 42,971,194
Real Estate Loans	902,437	304,578	1,225,805	2,432,820
Sales Finance Contracts .....	714,202	443,464	814,561	1,972,227
Total	$ 18,064,378	$ 9,981,348	$ 19,330,515	$ 47,376,241

In addition to the delinquency rating analysis, the ratio of bankrupt accounts to the total loan portfolio is also used as a credit quality indicator. The ratio of bankrupt accounts outstanding to total principal loan balances outstanding at September 30, 2017 and December 31, 2016 was 2.58% and 2.37%, respectively.

Nearly our entire loan portfolio consists of small homogeneous consumer loans (of the product types set forth in the table below).

September 30, 2017	Principal Balance	% Portfolio	9 Months Net Charge Offs	% Net Charge Offs

Consumer Loans	$ 476,763,220	89.1 %	$ 26,942,607	96.4
Real Estate Loans	25,738,330	4.8	23,911	.1
Sales Finance Contracts	32,601,568	6.1	975,898	3.5
Total	$ 535,103,118	100.0 %	$ 27,942,416	100.0 %

September 30, 2016	Principal Balance	% Portfolio	9 Months Net Charge Offs (Recoveries)	% Net Charge Offs

Consumer Loans	$ 465,389,045	89.4 %	$ 30,423,499	96.8
Real Estate Loans	23,609,087	4.5	(9,351)	-
Sales Finance Contracts	31,945,600	6.1	996,164	3.2
Total	$ 520,943,732	100.0 %	$ 31,410,312	100.0 %

Sales finance contracts are similar to consumer loans in nature of loan product, terms, customer base to whom these products are marketed, factors contributing to risk of loss and historical payment performance, and together with consumer loans, represented approximately 95% and 96% of principal balances outstanding in Company’s loan portfolio at September 30, 2017 and 2016, respectively. As a result of these similarities, which have resulted in similar historical performance, consumer loans and sales finance contracts represent substantially all loan losses. Real estate loans and related losses have historically been insignificant, and, as a result, we do not stratify the loan portfolio for purposes of determining and evaluating our loan loss allowance. Due to the composition of the loan portfolio, the Company determines and monitors the allowance for loan losses on a collectively evaluated, single portfolio segment basis. Therefore, a roll forward of the allowance for loan loss activity at the portfolio segment level is the same as at the total portfolio level. We have not acquired any impaired loans with deteriorating quality during any period reported. The following table provides additional information on our allowance for loan losses based on a collective evaluation:

	Three Months Ended		Nine Months Ended
	Sept. 30, 2017	Sept. 30, 2016	Sept. 30, 2017	Sept. 30, 2016
Allowance for Credit Losses:
Beginning Balance	$ 47,000,000	$ 36,200,000	$ 48,500,000	$ 33,500,000
Provision for Loan Losses	5,777,564	16,458,632	22,442,416	38,910,312
Charge-offs	(13,003,785)	(14,424,243)	(38,496,984)	(39,852,727)
Recoveries	3,226,221	2,765,611	10,554,568	8,442,415
Ending Balance	$ 43,000,000	$ 41,000,000	$ 43,000,000	$ 41,000,000

Ending balance; collectively evaluated for impairment	$ 43,000,000	$ 41,000,000	$ 43,000,000	$ 41,000,000

	Three Months Ended		Nine Months Ended
	Sept.30,2017	Sept.30,2016	Sept.30,2017	Sept.30,2016
Finance receivables:
Ending balance	$ 535,103,118	$ 520,943,732	$ 535,103,118	$ 520,943,732
Ending balance; collectively evaluated for impairment	$ 535,103,118	$ 520,943,732	$ 535,103,118	$ 520,943,732

Troubled Debt Restructings ("TDRs") represent loans on which the original terms have been modified as a result of the following conditions: (i) the restructuring constitutes a concession and (ii) the borrower is experiencing financial difficulties. Loan modifications by the Company involve payment alterations, interest rate concessions and/ or reductions in the amount owed by the borrower. The following table presents a summary of loans that were restructured during the three months ended September 30, 2017.

	Number Of Loans	Pre-Modification Recorded Investment	Post-Modification Recorded Investment

Consumer Loans	3,881	$ 8,764,876	$ 8,419,386
Real Estate Loans	4	27,360	27,360
Sales Finance Contracts	126	321,289	304,847
Total	4,011	$ 9,113,525	$ 8,751,593

The following table presents a summary of loans that were restructured during the three months ended September 30, 2016.

	Number Of Loans	Pre-Modification Recorded Investment	Post-Modification Recorded Investment

Consumer Loans	3,438	$ 8,039,469	$ 7,717,049
Real Estate Loans	11	151,271	151,271
Sales Finance Contracts	102	248,702	239,022
Total	3,551	$ 8,439,442	$ 8,107,342

The following table presents a summary of loans that were restructured during the nine months ended September 30, 2017.

	Number Of Loans	Pre-Modification Recorded Investment	Post-Modification Recorded Investment

Consumer Loans	11,117	$ 25,032,298	$ 24,018,560
Real Estate Loans	18	138,249	137,167
Sales Finance Contracts	352	900,736	861,534
Total	11,487	$ 26,071,283	$ 25,017,261

The following table presents a summary of loans that were restructured during the nine months ended September 30, 2016.

	Number Of Loans	Pre-Modification Recorded Investment	Post-Modification Recorded Investment

Consumer Loans	8,600	$ 18,235,460	$ 17,404,025
Real Estate Loans	26	308,017	308,017
Sales Finance Contracts	1282	629,089	588,812
Total	8,908	$ 19,172,566	$ 18,300,854

TDRs that occurred during the previous twelve months and subsequently defaulted during the three months ended September 30, 2017 are listed below.

	Number Of Loans	Pre-Modification Recorded Investment

Consumer Loans	1,465	$ 2,162,134
Real Estate Loans	-	-
Sales Finance Contracts	48	83,028
Total	1,513	$ 2,245,162

TDRs that occurred during the twelve months ended September 30, 2016 and subsequently defaulted during the three months ended September 30, 2016 are listed below.

	Number Of Loans	Pre-Modification Recorded Investment

Consumer Loans	1,481	$ 2,121,462
Real Estate Loans	-	-
Sales Finance Contracts	31	41,612
Total	1,512	$ 2,163,074

TDRs that occurred during the previous twelve months and subsequently defaulted during the nine months ended September 30, 2017 are listed below.

	Number Of Loans	Pre-Modification Recorded Investment

Consumer Loans	3,619	$ 5,244,206
Real Estate Loans	-	-
Sales Finance Contract	109	188,089
Total	3,728	$ 5,432,295

TDRs that occurred during the twelve months ended September 30, 2016 and subsequently defaulted during the nine months ended September 30, 2016 are listed below.

	Number Of Loans	Pre-Modification Recorded Investment

Consumer Loans	3,271	$ 4,662,399
Real Estate Loans	1	1,358
Sales Finance Contracts	96	152,916
Total	3,368	$ 4,816,673

The level of TDRs, including those that have experienced a subsequent default, is considered in the determination of an appropriate level of allowance of loan losses.