Company: ATLCL
Filing Date: 2025-02-25
Form Type: CORRESP
Source: 0001437749-25-005072
Chunk: 7

Company: Atlanticus Holdings Corp
Filing Date: 2025-02-25
Form: CORRESP
Chunk 7
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 measuring the estimated amount of gains or losses included in earnings during the period attributable to changes in instrument-specific credit risk. Please revise future filings to disclose the information in ASC 825-10-50-30.c and provide us your proposed revised disclosure. |

Company Response:

As previously discussed with the Staff, the isolation of the impact of instrument-specific credit risk is extremely difficult and subjective due to the interrelated nature of our fair value inputs. Noting the reference to ASC 825-10-45-5, which allows for companies to use alternative methods to represent the portion of the total change in fair value resulting from a change in instrument-specific credit risk, we have estimated this impact based on changes to the risk free rate relative to our discount rate used in our fair value analysis. While our discount rate does not always move in tandem with changes in the risk free rate, we believe this approach provides a reasonable estimate of the impact caused by changes in this rate. In future filings, we will provide the following additional disclosure.

For those asset classes above that are carried at fair value in our condensed consolidated financial statements, gains and losses associated with fair value changes are detailed on our condensed consolidated statements of income as a component of Changes in fair value of loans. Variations in the three month U.S. Treasury bill rate over a measurement period are used to determine the portion of change in fair value considered to be attributable to changes in instrument-specific credit risk. A portion of these variations that are determined to impact our fair value calculation is applied to the period end discount rate we use to determine fair value. For our loans included in the above table, we assess the fair value of these assets based on our estimate of future cash flows net of servicing costs. For the three and nine month periods ended September 30, 2024 and 2023, we estimate the portion of fair value changes considered to be attributable to changes in instrument-specific credit risk to be $10.1 million, $10.1 million, ($2.3) million and $(15.2) million, respectively.

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The Company appreciates the assistance the Staff has provided with its comments. If you have any questions, please do not hesitate to call me at (404) 885-3310.

| Sincerely,             |
| /s/ Paul Davis Fancher |
| Paul Davis Fancher     |

| cc: | William R. McCamey (Atlanticus Holdings Corporation)   
 Mitchell C. Saunders