Company: ATLCL
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001437749-25-033947
Chunk: 164

Company: Atlanticus Holdings Corp
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 164
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 loans at amortized cost  $111.1  $109.0 
 Balance of loans greater than 90-days delinquent still accruing interest and fees  $2.2  $3.7 

   Loan Modifications and Restructurings

    We review our Loans at amortized cost, net, associated with our Auto Finance segment’s operations to determine if any modifications for borrowers experiencing financial difficulty were made that would qualify the receivable as a Financial Difficulty Modification ("FDM"). This could include a restructuring of the loan terms to alleviate the burden of the borrower's near-term cash requirements, such as a modification of terms to reduce or defer cash payments to help the borrower attempt to improve its financial condition. For the nine months ended  September 30, 2025 and 2024, no Loans at amortized cost qualified as a FDM.

   Intangible assets and amortization
    
   As part of the acquisition of Mercury, we acquired $32.4 million of identifiable finite-lived intangible assets primarily associated with internally developed software. These intangible assets are carried at the fair value at acquisition less accumulated amortization. Amortization is computed on a straight-line basis over the useful lives of the related assets which is estimated to be 5 years from the date of acquisition. Details of our finite-lived intangible assets were as follows (in thousands):

      As of September 30, 2025 
Intangible assets - gross carrying amount  32,430 
Accumulated amortization  (541)
Net carrying amount  31,889 

   Amortization expense related to these finite-lived intangible assets was $0.5 million for the three and nine month periods ended  September 30, 2025, and is included within depreciation and amortization in the condensed consolidated statements of income.
    
   Rewards Liability
    
   Certain of our credit card accounts are associated with customer reward programs, which allow the customer to earn rewards that can be redeemed for statement credits, gift cards, cash back or applied against purchases on certain online platforms. The amount of reward that a customer earns varies based on the terms and conditions of the reward program and product. When rewards are earned by a customer, rewards expense is recorded as an offset to interchange income, as a component of Other revenue (on our Condensed Consolidated Statements of Income), with a corresponding increase to the customer rewards liability within Accounts payable and accrued expenses (