9. Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of reconciliation of the finance receivables measured at fair value on a recurring basis

The table below presents a reconciliation of the finance receivables measured at fair value on a recurring basis using significant unobservable inputs:

	Three Months Ended						Six Months Ended
	June 30,							June 30,
		2019			2018				2019			2018
		(In thousands)							(In thousands)
Balance at beginning of period	$	997,552		$	209,847			$	821,066		$	–
Finance receivables at fair value acquired during period		249,873			218,001				494,626			430,611
Payments received on finance receivables at fair value		(68,005	)		(10,331	)			(117,505	)		(12,973	)
Net interest income accretion on fair value receivables		(21,055	)		(4,622	)			(39,822	)		(4,743	)
Mark to fair value		–			–				–			–
Balance at end of period	$	1,158,365		$	412,895			$	1,158,365		$	412,895

Schedule of finance receivables to their contractual balances

The table below compares the fair values of these finance receivables to their contractual balances for the periods shown:

	June 30, 2019				December 31, 2018
	Contractual		Fair		Contractual		Fair
	Balance		Value		Balance		Value
	(In thousands)
Finance receivables measured at fair value	$	1,190,231	$	1,158,365	$	829,039	$	821,066

Schedule of level 3 fair value measurements

The following table provides certain qualitative information about our level 3 fair value measurements:

Financial Instrument	Fair Values as of					Inputs as of
	June 30,		December 31,			June 30,		December 31,
	2019		2018		Unobservable Inputs	2019		2018
	(In thousands)
Assets:
Finance receivables measured at fair value	$	1,158,365	$	821,066	Discount rate Cumulative net losses		8.9% - 11.1% 15.0% - 16.1%		8.9% - 9.9% 15.0% - 16.0%

Schedule of delinquency status of finance receivables measured at fair value

The following table summarizes the delinquency status of these finance receivables measured at fair value as of June 30, 2019 and December 31, 2018:

	June 30,		December 31,
	2019		2018
	(In thousands)
Delinquency Status
Current	$	1,104,196	$	790,727
31 - 60 days		56,156		26,285
61 - 90 days		20,782		8,350
91 + days		9,097		3,677
	$	1,190,231	$	829,039

Schedule of estimated fair values of financial assets and liabilities

The estimated fair values of financial assets and liabilities at June 30, 2019 and December 31, 2018, were as follows:

	As of June 30, 2019
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	9,745	$	9,745	$	–	$	–	$	9,745
Restricted cash and equivalents		125,486		125,486		–		–		125,486
Finance receivables, net		1,147,589		–		–		1,110,331		1,110,331
Accrued interest receivable		16,394		–		–		16,394		16,394
Liabilities:
Warehouse lines of credit	$	139,224	$	–	$	–	$	139,224	$	139,224
Accrued interest payable		5,268		–		–		5,268		5,268
Residual interest financing		39,292		–		–		39,292		39,292
Securitization trust debt		2,077,286		–		–		2,098,476		2,098,476
Subordinated renewable notes		14,368		–		–		14,368		14,368

	As of December 31, 2018
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	12,787	$	12,787	$	–	$	–	$	12,787
Restricted cash and equivalents		117,323		117,323		–		–		117,323
Finance receivables, net		1,454,709		–		–		1,434,631		1,434,631
Accrued interest receivable		31,969		–		–		31,969		31,969
Liabilities:
Warehouse lines of credit	$	136,847	$	–	$	–	$	136,847	$	136,847
Accrued interest payable		4,819		–		–		4,819		4,819
Residual interest financing		39,106		–		–		39,106		39,106
Securitization trust debt		2,063,627		–		–		2,051,920		2,051,920
Subordinated renewable notes		17,290		–		–		17,290		17,290