Company: ATLCL
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001437749-25-033947
Chunk: 27

Company: Atlanticus Holdings Corp
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 27
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 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 nine months ended  September 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 $8.9 million and $11.3 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 nine months ended  September 30, 2025 and 2024: 

       Loans at Fair Value  
   2025    2024  
 Balance at January 1,      $2,630,274      $2,173,759 
 Acquisition of Mercury receivables at fair value       3,009,018       - 
 Changes in fair value of loans at fair value, included in earnings   5,087       101,035     
 Changes in fair value due to current period principal charge-offs, net of recoveries (1)   (460,074)      (463,076)    
 Changes in fair value due to current period finance and fee charge-offs (1)   (216,986)      (187,120)    
 Total Changes in fair value of loans (2)       (671,973)      (549,161)
 Purchases       2,700,743       1,969,259 
 Finance and fees, added to the account balance       1,004,913       785,847 
 Settlements       (2,322,966)      (1,868,085)
 Balance at September 30,(3)      $6,350,009      $2,511,619 
 Aggregate unpaid gross balance of loans carried at fair value      $6,600,135      $2,654,112 
 Change in unrealized losses for the period included in earnings (or changes in net assets) for assets held at the end of the period