Company: ATLCL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015559
Chunk: 186

Company: Atlanticus Holdings Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 186
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 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 three months ended March 31, 2025 when compared to the three months ended March 31, 2024, were largely due to a decrease in the Changes in fair value of loans at fair value, included in earnings, which totaled $55.2 million for the three months ended March 31, 2025 compared to $72.5 million for the three months ended March 31, 2024. Results impacting the $55.2 million and $72.5 million of Changes in fair value of loans at fair value, included in earnings for the three months ended March 31, 2025 and 2024, respectively, are as follows: 1) net gains of $31.4 million associated with 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 (compared to $34.9 million of such gains for the three months ended March 31, 2024), 2) net losses of $37.7 million on the acquisition of private label credit receivables, which often have below market pricing and for which we often receive merchant fees which ensure we earn adequate returns (compared to $28.7 million of such losses for the three months ended March 31, 2024) and 3) net gains of $61.5 million (compared to $66.3 million of such increase for the three months ended March 31, 2024) related to favorable changes in fair value assumptions due to improvements in the underlying performance in the form of improved delinquencies and improved net returns. Marginally contributing to this decline in Changes in fair value of loans were slight increases in principal and finance charge-offs (net of recoveries), which totaled $233.5 million for the three months ended March 31, 2025, compared