Company: ATLCL
Filing Date: 2025-03-31
Form Type: 10-K/A
Source: 0001437749-25-009919
Chunk: 13

Company: Atlanticus Holdings Corp
Filing Date: 2025-03-31
Form: 10-K/A
Chunk 13
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 None of these companies are publicly-traded and the carrying value of our investment in these companies is not material. See Note 2, "Significant Accounting Policies and Consolidated Financial Statement Components," to our consolidated financial statements for further credit quality statistics and analysis.

Changes in fair value of loans. We experienced losses in our total Changes in fair value of loans of $733.5 million for the year ended December 31, 2024. This compares to losses of $689.6 million for the year ended December 31, 2023. Changes in fair value of loans includes 1) current period principal and finance charge-offs of fair value receivables, 2) the normal accretion of fair value related to finance charges and fees in excess of the contractual amounts billed, which is recognized in revenue during the period, and gains typically recognized in earnings as the fair value of finance charges and fees is greater than the contractual amounts billed during a period, 3) losses on acquisitions of our private label receivables and 4) the impact of changes in the assumptions underlying receivables at the end of the measurement period. The increase in losses in Changes in fair value of loans for the year ended December 31, 2024 when compared to the year ended December 31, 2023, were largely due to increases in principal and finance charge-offs (net of recoveries), which totaled $863.3 million for the year ended December 31, 2024, compared to $760.6 million for the year ended December 31, 2023. These charge-offs increased period over period primarily due to overall increases in our acquisition and relative mix of receivables and not due to specific changes in the underlying performance of the receivables (see additional discussion related to delinquencies and charge-offs below). Offsetting this increase in charge-offs, was an increase in the Changes in fair value of loans at fair value, included in earnings, which totaled $129.8 million for the year ended December 31, 2024 compared to $71.0 million for the year ended December 31, 2023, primarily resulting from improvements in the fair value assessment for receivables. Results impacting the $129.8 million and $71.0 million of Changes in fair value of loans at fair value, included in earnings for the years ended December 31, 2024 and 2023, respectively, are as follows: 1) net gains of $114.5 million