Company: ATLCL
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025502
Chunk: 165

Company: Atlanticus Holdings Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 165
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 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 the measurement period are used to determine the portion of change in fair value considered to be attributable to changes in instrument-specific credit risk. These variations are 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 six months ended  June 30, 2025 and 2024, we estimate the portion of fair value changes considered to be attributable to changes in instrument-specific credit risk to be $7.5 million and $(0.5) million, respectively.

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   For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the six months ended  June 30, 2025 and 2024: 

       Loans at Fair Value  
   2025    2024  
 Balance at January 1,      $2,630,274      $2,173,759 
 Changes in fair value of loans at fair value, included in earnings   50,134       103,326     
 Changes in fair value due to current period principal charge-offs, net of recoveries (1)   (307,029)      (322,174)    
 Changes in fair value due to current period finance and fee charge-offs (1)   (138,227)      (126,574)    
 Total Changes in fair value of loans (2)       (395,122)      (345,422)
 Purchases       1,562,566       1,203,662 
 Finance and fees, added to the account balance       594,944       501,038 
 Settlements       (1,387,938)      (1,255,658)
 Balance at June 30,(3)      $3,004,724      $2,277,379 
 Aggregate unpaid gross balance of loans carried at fair value      $3,046,477      $2