ENOVA INTERNATIONAL, INC. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS. (Form 10-K)

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RECENT REGULATORY DEVELOPMENTS

Consumer Financial Protection Bureau (“CFPB”)

We received a Civil Investigative Demand ("CID") from the CFPB concerning
certain loan processing issues. We have been cooperating fully with the CFPB by
providing data and information in response to the CID. We anticipate being able
to expeditiously complete the investigation as several of the issues were
self­disclosed and we have provided, and will continue to provide, restitution
to customers who may have been negatively impacted.

On October 6, 2017, the CFPB issued its final rule entitled "Payday, Vehicle
Title, and Certain High-Cost Installment Loans" (the "Small Dollar Rule"), which
covers certain loans that we offer. The Small Dollar Rule requires that lenders
who make short-term loans and longer-term loans with balloon payments reasonably
determine consumers' ability to repay the loans according to their terms before
issuing the loans. The Small Dollar Rule also introduces new limitations on
repayment processes for those lenders as well as lenders of other longer-term
loans with an annual percentage rate greater than 36 percent that include an ACH
authorization or similar payment provision. If a consumer has two consecutive
failed payment attempts, the lender must obtain the consumer's new and specific
authorization to make further withdrawals from the consumer's bank account. For
loans covered by the Small Dollar Rule, lenders must provide certain notices to
consumers before attempting a first payment withdrawal or an unusual withdrawal
and after two consecutive failed withdrawal attempts. On June 7, 2019, the CFPB
issued a final rule to set the compliance date for the mandatory underwriting
provisions of the Small Dollar Rule to November 19, 2020. On July 7, 2020, the
CFPB issued a final rule rescinding the ability to repay ("ATR") provisions of
the Small Dollar Rule along with related provisions, such as the establishment
of registered information systems for checking ATR and reporting loan activity.
The payment provisions of the Small Dollar Rule remain in place, but remain
stayed indefinitely by the United States Court of Appeals for the Fifth Circuit,
which is hearing an appeal from the plaintiff on a constitutional challenge to
the Small Dollar Rule. On October 14, 2021, the Fifth Circuit ruled that the
Small Dollar Rule will not take effect until 286 days after the Fifth Circuit
rules on the appeal. If the Small Dollar Rule does become effective in its
current proposed form, we will need to make certain changes to our payment
processes and customer notifications in our U.S. consumer lending business.

Virginia SB 421

On March 7, 2020, SB 421 passed through both houses of the Virginia Legislature.
The bill amends laws governing open-end lines of credit to cap interest and fees
at 36% annual interest plus a $50 annual participation fee. Further, the law
would allow Virginia-licensed lenders to make installment loans at 36% APR plus
a loan processing fee equal to the greater of $75 or 5% of the principal loan
amount, but not exceeding $150. The law went into effect on January 1, 2021.

Illinois SB 1792

On March 23, 2021, the Economic Equity Act ("EEA") became effective in Illinois.
The EEA implements a 36% rate cap on all consumer lending, with the APR
calculated consistent with the Military Lending Act's Military Annual Percentage
Rate. The EEA applies to consumer loans originated on or after the effective
date. In addition, the EEA provides for the application of a predominant
economic interest test for bank service arrangements. Pursuant to the
predominant economic interest test, a broker or service with a predominant
economic interest in a loan is considered to be the "true lender" for purposes
of applying the EEA and the 36% rate cap.

New Mexico HB 132

On February 15, 2022, the New Mexico Legislature passed HB 132. The bill imposes
a 36% rate cap on loans up to $10,000. Additionally, HB 132 provides for the
application of a predominant economic interest test for bank service
arrangements whereby a broker or servicer with a predominant economic interest
in a loan is considered to be the "true lender" for purposes of applying the 36%
rate cap. The New Mexico Governor has until March 9, 2022 to sign the bill or
else it will be vetoed. If signed, the bill will take effect on January 1, 2023.

General Data Protection Law in Brazil

On August 14, 2018, Brazil adopted the General Data Privacy Law (Lei Geral de
Proteção de Dados Pessoais or "LGPD"). The key provisions of LGPD are quite
similar to the European Union's General Data Protection Regulation ("GDPR") in
that it grants certain rights to data subjects, imposes obligations on companies
with regard to the processing of data, and allows authorities to impose
substantial fines on companies that violate the law. LGPD was originally
anticipated to go into effect on February 15, 2020; however, several amendments
to LGPD delayed the effective date. LGPD took effect on September 18, 2020, and
enforcement of the penalties and sanctions for non-compliance began August 1,
2021. Compliance with LGPD may increase the cost of conducting business in
Brazil, and we could see regulatory compliance costs and enforcement activity
now that the law is in effect.
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RESULTS OF OPERATIONS

Election of Fair Value Option

Prior to January 1, 2020, we carried our loans and finance receivables at
amortized cost, net of an allowance for estimated losses inherent in the
portfolio. Effective January 1, 2020, we elected the fair value option to
account for all our loans and finance receivables in conjunction with the
transition guidance specified in ASU 2019-05. We believe the fair value option
better reflects the value of our portfolio and its future economic performance
as well as more closely aligns with our marginal decision-making processes that
rely on risk-based pricing and discounted cash flow methodologies. Refer to Note
1 for discussion of the election and its impact on our accounting policies. In
comparing our current year results under the fair value option to prior periods,
it may be helpful to consider the following.

Prior to 2020, origination fees as well as certain direct costs associated with
originating loans were deferred and amortized into or against revenue on an
effective yield basis over the term of the loan or the projected delivery term
of the finance receivable. Subsequent to the election of the fair value option,
these fees and costs are no longer eligible for deferral. As such, revenue is
slightly higher compared to the prior method due to origination fees being
immediately recognized and the lack of amortization of deferred costs into
revenue. As origination costs are no longer eligible for deferral, marketing and
operations and technology expenses are generally slightly higher, particularly
in periods of growth, compared to the prior method.

Loans and finance receivables are carried at fair value with changes in fair
value recorded in the consolidated income statement. The fair value takes into
consideration expected lifetime losses of the loans and finance receivables,
whereas the prior method incorporated only incurred losses. As such, changes in
credit quality, amongst other significant assumptions, typically have a more
significant impact on the carrying value of loans and finance receivables under
the fair value option.

COVID-19

The COVID-19 pandemic has severely impacted global economic conditions,
resulting in substantial volatility in the financial markets, increased
unemployment, and operational challenges resulting from measures that
governments have imposed to control its spread. We have implemented a number of
procedures in response to the pandemic to support the safety and well-being of
our employees, customers and stockholders that continue through the date of this
report:

As shelter-in-place orders and general distancing guidelines were released, we moved quickly to transition virtually all of our employees to a remote work environment.

We have actively worked with our customers to understand their financial situation, waive late fees, offer a variety of repayment options to increase flexibility, and reduce or defer payments for affected customers.

We have taken steps to adjust our underwriting procedures, which has reduced exposure to the most affected consumers and businesses.

We adjusted loan and draw sizes as well as shortened duration in an effort to
reduce risk in this volatile environment. Certain of these measures have eased
since the height of the pandemic, with improvement of economic conditions and
our outlook.

From a loan valuation perspective, the COVID-19 pandemic significantly increased
the potential variability of our expected cash flows. We deemed it appropriate
to increase the discount rate to capture the increase in potential volatility in
expected cash flows due to the unprecedented nature of this pandemic and
governmental response. After adjusting the discount rate for the decrease in
underlying interest rates, we increased the rate by 500 basis points based on
what we deemed a market participant would require to assume the additional risk.
Consequently, the associated fair values of these loans were adjusted lower as
part of the standard process in our internally-developed valuation models
described in the Notes to the Consolidated Financial Statements as well as the
"Critical Accounting Estimates" section of this Form 10-K. These rates remained
consistent for the remainder of 2020. Over the course of 2021, we noted a
tightening of credit spreads in observable pricing in the market; as such, we
reduced the discount rate used in our valuations. As of December 31, 2021, our
discount rates have generally returned to the levels utilized immediately prior
to the pandemic, which we believe is representative of what a market participant
would use.

The number of loans with payment deferrals or other modifications increased
meaningfully toward the end of the first quarter and into the second quarter of
2020. These requests for deferrals and modifications decreased meaningfully over
the remainder of 2020 and into 2021. Since the beginning of the pandemic, we
have assessed performance of borrowers that had elected to defer or modify loan
payments during the pandemic. As of December 31, 2021, our collection data does
not appear to indicate increased risk with these borrowers. As modifications and
deferrals do not appear to be a strong indicator of future activity, we did not
make an adjustment to the fair value of these loans at December 31, 2021 based
on current or past modification or deferral.
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After seeing increases in delinquency and charge-offs early in the pandemic, we
experienced significant improvements to these metrics over the remainder of 2020
and carrying into 2021. The U.S. government provided multiple rounds of stimulus
assistance to taxpayers and businesses. Positive COVID-19 test counts in the
U.S. generally decreased across the first half of 2021 although rose again in
the second half of 2021 with the spread of the Delta and Omicron variants. With
deceleration in vaccination rates, the emergence of new and more transmissible
COVID strains, and questions on the efficacy of the vaccines in use against new
variants, there remains significant concern among public health officials and
governmental bodies on the forward trajectory of the pandemic and its impacts on
the economy. In evaluating inputs to our valuation models as of December 31,
2021, we noted that, although rising in our consumer loan portfolios,
delinquencies and charge-off experience were still lower than pre-pandemic
levels, both of which were likely to have been favorably impacted by
governmental stimulus efforts. Future stimulus is uncertain and, if not provided
at the same levels or at all, could cause future behavior to deviate from past
performance. Similar to our loan valuations at December 31, 2020, March 31,
2021, June 30, 2021 and September 30, 2021, management concluded that the
probability of future charge-offs was higher than what we had experienced in the
past and, therefore, increased anticipated charge-offs in our fair value models,
which reduced the fair value of our portfolio at December 31, 2021. We deemed
the resulting fair value to be an appropriate market-based exit price that
considers current market conditions at December 31, 2021.

We continue to monitor this pandemic closely and plan to make future changes to respond to the situation as it continues to evolve.

STRONG POINTS

Our financial results for the year ended December 31, 2021 (“2021”) are summarized below.

Revenues have increased $124.2 millioni.e. 11.5%, to $1,207.9 million in 2021 compared to $1,083.7 million in the year ended December 31, 2020 (“2020”).

The net income was $1,024.3 million in 2021 compared to $684.2 million in 2020.

Operating profit increased $55.3 millioni.e. 15.4%, to $413.1 million in 2021, compared to $357.8 million in 2020.

The net income was $256.3 million in 2021, compared to $377.8 million in 2020. Diluted earnings per share were $6.79 in 2021 compared to $11.70 in 2020.

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The following tables reflect our results of operations for the periods indicated, both in dollars and as a percentage of total revenue (in thousands of dollars, except per share data):

                                                          Year Ended December 31,
                                                   2021            2020            2019
Revenue
Loans and finance receivables revenue           $ 1,192,043     $ 1,076,204     $ 1,171,857
Other                                                15,889           7,506           2,900
Total Revenue                                     1,207,932       1,083,710       1,174,757
Change in Fair Value                               (183,672 )      (399,517 )             -
Cost of Revenue                                           -               -        (602,894 )
Net Revenue/Gross Profit                          1,024,260         684,193         571,863
Operating Expenses
Marketing                                           271,160          69,780         115,132
Operations and technology                           147,700          96,284          84,262
General and administrative                          156,962         140,600         109,204
Depreciation and amortization                        35,375          19,732          15,055
Total Operating Expenses                            611,197         326,396         323,653
Income from Operations                              413,063         357,797         248,210
Interest expense, net                               (76,509 )       (86,691 )       (75,604 )
Foreign currency transaction (loss) gain, net          (382 )           514            (216 )
Gain on bargain purchase                                  -         163,999               -
Equity method investment income                       2,953             628               -
Other nonoperating expenses                          (1,970 )          (827 )        (2,321 )
Income before Income Taxes                          337,155         435,420         170,069
Provision for income taxes                           80,087          57,191          42,053
Net income from continuing operations before
noncontrolling interest                             257,068         378,229 

128,016

Less: Net income attributable to
noncontrolling interest                                 773              85               -
Net income from continuing operations               256,295         378,144 

128,016

Net loss from discontinued operations                     -            (300 )       (91,404 )
Net income attributable to Enova
International, Inc.                                 256,295         377,844 

36,612

Diluted earnings per share - continuing
operations                                      $      6.79     $     11.71     $      3.72
Diluted loss per share - discontinued
operations                                                -           (0.01 )         (2.66 )
Diluted earnings per share                      $      6.79     $     11.70     $      1.06

Revenue
Loans and finance receivables revenue                  98.7 %          99.3 %          99.8 %
Other                                                   1.3             0.7             0.2
Total Revenue                                         100.0           100.0           100.0
Change in Fair Value                                  (15.2 )         (36.9 )             -
Cost of Revenue                                           -               -           (51.3 )
Net Revenue/Gross Profit                               84.8            63.1            48.7
Operating Expenses
Marketing                                              22.5             6.4             9.8
Operations and technology                              12.2             8.9             7.2
General and administrative                             13.0            13.0             9.3
Depreciation and amortization                           2.9             1.8             1.3
Total Operating Expenses                               50.6            30.1            27.6
Income from Operations                                 34.2            33.0            21.1
Interest expense, net                                  (6.3 )          (8.0 )          (6.4 )
Foreign currency transaction (loss) gain, net             -             0.1               -
Gain on bargain purchase                                  -            15.1               -
Equity method investment income                         0.2             0.1               -
Other nonoperating expenses                            (0.2 )          (0.1 )          (0.2 )
Income before Income Taxes                             27.9            40.2            14.5
Provision for income taxes                              6.6             5.3             3.6
Net income from continuing operations before
noncontrolling interest                                21.3            34.9            10.9
Less: Net income attributable to
noncontrolling interest                                 0.1               -               -
Net income from continuing operations                  21.2            34.9            10.9
Net loss from discontinued operations                     -               -            (7.8 )
Net income attributable to Enova
International, Inc.                                    21.2 %          34.9 %           3.1 %



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NON-GAAP FINANCIAL MEASURES

In addition to the financial information prepared in conformity with generally
accepted accounting principles ("GAAP"), we provide historical non-GAAP
financial information. We believe that presentation of non-GAAP financial
information is meaningful and useful in understanding the activities and
business metrics of our operations. We believe that these non-GAAP financial
measures reflect an additional way of viewing aspects of our business that, when
viewed with our GAAP results, provide a more complete understanding of factors
and trends affecting our business.

We provide non-GAAP financial information for informational purposes and to
enhance understanding of our GAAP consolidated financial statements. Readers
should consider the information in addition to, but not instead of or superior
to, our consolidated financial statements prepared in accordance with GAAP. This
non-GAAP financial information may be determined or calculated differently by
other companies, limiting the usefulness of those measures for comparative
purposes.

Adjusted earnings measures

In addition to reporting financial results in accordance with GAAP, we have
provided adjusted earnings and adjusted earnings per share, or, collectively,
the Adjusted Earnings Measures, which are non-GAAP measures. We believe that the
presentation of these measures provides investors with greater transparency and
facilitates comparison of operating results across a broad spectrum of companies
with varying capital structures, compensation strategies, derivative instruments
and amortization methods, which provides a more complete understanding of our
financial performance, competitive position and prospects for the future. We
also believe that investors regularly rely on non-GAAP financial measures, such
as the Adjusted Earnings Measures, to assess operating performance and that such
measures may highlight trends in our business that may not otherwise be apparent
when relying on financial measures calculated in accordance with GAAP. In
addition, we believe that the adjustments shown below are useful to investors in
order to allow them to compare our financial results during the periods shown
without the effect of each of these income or expense items.

The following table provides reconciliations between net earnings and diluted earnings per share calculated in accordance with GAAP and adjusted earnings measures, which are presented net of tax (in thousands, except per share data):

                                                         Year Ended 

the 31st of December,

                                                  2021            2020      

2019

Net income from continuing operations $256,295 $378,144

   $   128,016
Adjustments:
Gain on bargain purchase                                 -        (163,999 )             -
Transaction-related costs(a)                         1,424          20,023               -
Lease termination and cease use loss(b)              7,535               -             726
Other nonoperating expenses(c)                       1,970             827  

2,321

Intangible asset amortization                        6,862           1,777  

1,070

Stock-based compensation expense                    21,179          18,041  

11,967

Foreign currency transaction loss (gain),
net(d)                                                 372            (499 )           216
Cumulative tax effect of adjustments                (9,855 )        (8,038 )        (3,907 )
Discrete tax adjustments(e)                              -         (11,604 )          (141 )
Adjusted earnings                              $   285,782     $   234,672     $   140,268

Diluted earnings per share from continuing
operations                                     $      6.79     $     11.71     $      3.72
Adjustments:
Gain on bargain purchase                                 -           (5.08 )             -
Transaction-related costs(a)                          0.04            0.62               -
Lease termination and cease use loss(b)               0.20               -  

0.02

Other nonoperating expenses(c)                        0.05            0.03  

0.07

Intangible asset amortization                         0.18            0.05  

0.03

Stock-based compensation expense                      0.56            0.56  

0.35

Foreign currency transaction loss (gain),
net(d)                                                0.01           (0.02 )             -
Cumulative tax effect of adjustments                 (0.26 )         (0.25 )         (0.11 )
Discrete tax adjustments(e)                              -           (0.36 )             -
Adjusted earnings per share                    $      7.57     $      7.26     $      4.08




(a)
For the years ended December 31, 2021 and 2020, we recorded expenses of $1.4
million ($1.1 million net of tax) and $20.0 million ($19.5 million net of tax),
respectively, related to acquisitions and a divestiture of a subsidiary.
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(b)

For the years ended December 31, 2021 and 2019, we recorded losses of $7.5 million ($5.6 million net of tax), including a net write-off of leasehold improvements of $4.2 million), and $0.7 million ($0.6 million net of tax), respectively, related to exits from leased office space.

(vs)

For the year ended December 31, 2021, we recorded a loss of $0.8 million ($0.6
million net of tax) related to the partial divestiture of a subsidiary and a
nonoperating expense of $0.8 million ($0.6 million net of tax) related to an
incomplete capital markets transaction. For the years ended December 31, 2021,
2020 and 2019, we recorded losses on early extinguishment of debt of $0.4
million ($0.3 million net of tax), $0.8 million ($0.6 million net of tax) and
$2.3 million ($1.8 million net of tax), respectively.

(D)

Excludes amounts attributable to non-controlling interests.

(e)

For the years ended December 31, 2020 and 2019, we recorded income tax benefits
of $11.6 million resulting from the remeasurement of our liability for certain
previously unrecognized tax benefits and $0.1 million from the U.S. Tax Cuts and
Jobs Act, respectively.

Adjusted EBITDA

The table below shows Adjusted EBITDA, which is a non-GAAP measure that we
define as earnings excluding depreciation, amortization, interest, foreign
currency transaction gains or losses, taxes and stock-based compensation
expense. We believe Adjusted EBITDA is used by investors to analyze operating
performance and evaluate our ability to incur and service debt and our capacity
for making capital expenditures. Adjusted EBITDA is also useful to investors to
help assess our estimated enterprise value. In addition, we believe that the
adjustments for transaction-related costs, lease termination and cease use
(gain) loss, gain on bargain purchase, equity method investment income, and
other nonoperating expenses shown below are useful to investors in order to
allow them to compare our financial results during the periods shown without the
effect of the income or expense items. The computation of Adjusted EBITDA as
presented below may differ from the computation of similarly-titled measures
provided by other companies (dollars in thousands):

                                                       Year Ended December 

31,

                                                2021            2020        

2019

Net income from continuing operations $256,295 $378,144

  $   128,016
Depreciation and amortization expenses(d)         35,362          19,726    

15,055

Interest expense, net(d)                          75,929          86,507    

75,604

Foreign currency transaction loss (gain),
net(d)                                               372            (499 )  

216

Provision for income taxes                        80,087          57,191    

42,053

Stock-based compensation expense                  21,179          18,041    

11,967

Adjustments:

Transaction-related costs(a)                       1,424          20,023               -
Lease termination and cease use loss(b)            3,336               -    

370

Gain on bargain purchase                               -        (163,999 )             -
Equity method investment income                   (2,953 )          (628 )             -
Other nonoperating expenses(c)                     1,970             827    

2,321

Adjusted EBITDA                              $   473,001     $   415,333    

$275,602

Adjusted EBITDA margin calculated as
follows:
Total Revenue                                $ 1,207,932     $ 1,083,710     $ 1,174,757
Adjusted EBITDA                              $   473,001     $   415,333     $   275,602
Adjusted EBITDA as a percentage of total
revenue                                             39.2 %          38.3 %          23.5 %



See footnotes to previous table for explanation of (a), (b), (c) and (d).

Loans and financial receivables combined

Combined loans and finance receivables is a non-GAAP measure that includes both
loans and RPAs we own and loans we guarantee, which are either GAAP items or
disclosures required by GAAP. We believe this non-GAAP measure provides
investors with important information needed to evaluate the magnitude of
potential receivable losses and the opportunity for revenue performance of the
loans and finance receivables portfolio on an aggregate basis. We also believe
that the comparison of the aggregate amounts from period to period is more
meaningful than comparing only the amounts reflected on our consolidated balance
sheets since both revenue and cost of revenue are impacted by the aggregate
amount of receivables we own and those we guarantee as reflected in our
consolidated financial statements.
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YEAR ENDED IN 2021 COMPARED TO YEAR ENDED IN 2020

Turnover and net turnover

Revenues have increased $124.2 millioni.e. 11.5%, to $1,207.9 million for 2021 compared to $1,083.7 million for 2020. The change in revenue is mainly due to the inclusion of OnDeck for a full twelve months in 2021, partially offset by a reduction in creations in the prior year due to our efforts to mitigate the risk of the pandemic of COVID19.

Our net revenue was $1,024.3 million for 2021 compared to $684.2 million for
2020. Our net revenue as a percentage of revenue ("net revenue margin") was
84.8% in 2021 compared to 63.1% in 2020. The increase in net revenue margin was
driven by lower delinquency rates and lower than expected charge-offs,
particularly in the small business portfolio.

The following table shows the revenue and net revenue components, separated by product for 2021 and 2020 (in thousands of dollars):

                                            Year Ended December 31,
                                              2021            2020          $ Change       % Change
Revenue by product:
Consumer loans and finance receivables
revenue                                   $    815,251     $   962,119     $ (146,868 )        (15.3 )%
Small business loans and finance
receivables revenue                            376,792         114,085        262,707          230.3
Total loan and finance receivable
revenue                                      1,192,043       1,076,204        115,839           10.8
Other                                           15,889           7,506          8,383          111.7
Total revenue                                1,207,932       1,083,710        124,222           11.5
Change in fair value                          (183,672 )      (399,517 )      215,845          (54.0 )
Net revenue                               $  1,024,260     $   684,193     $  340,067           49.7 %

Revenue by product (% to total):
Consumer loans and finance receivables
revenue                                           67.5 %          88.8 %
Small business loans and finance
receivables revenue                               31.2            10.5
Total loan and finance receivable
revenue                                           98.7            99.3
Other                                              1.3             0.7
Total revenue                                    100.0           100.0
Change in fair value                             (15.2 )         (36.9 )
Net revenue                                       84.8 %          63.1 %

Loan and financing balances receivable

The fair value of our loan and finance receivable portfolio in our consolidated
financial statements at December 31, 2021 and 2020 was $1,964.7 million and
$1,241.5 million, respectively, with an outstanding principal balance of
$1,878.4 million and $1,263.1 million, respectively. The fair value of the
combined loan and finance receivables portfolio includes $18.8 million with an
outstanding principal balance of $11.8 million and $10.3 million with an
outstanding principal balance of $8.8 million of consumer loan balances that are
guaranteed by us but not owned by us, which are not included in our consolidated
financial statements as of December 31, 2021 and 2020, respectively. See
"-Non-GAAP Financial Measures-Combined Loans and Finance Receivables" above for
additional information related to combined loans and finance receivables.

The following table summarizes the balances of outstanding loans and financial receivables as of December 31, 2021 and 2020 (in thousands):

                                                                 As of December 31,
                                               2021                                              2020
                                            Guaranteed                                        Guaranteed
                             Company          by the                           Company          by the
                            Owned(a)        Company(a)      Combined(b)       Owned(a)        Company(a)      Combined(b)
Consumer loans and
finance receivables
Principal                  $   867,751     $     11,789     $    879,540     $   576,404     $      8,845     $    585,249
Fair value                     890,144           18,813          908,957         625,219           10,289          635,508
Fair value as a % of
principal                        102.6 %          159.6 %          103.3 %         108.5 %          116.3 %          108.6 %
Small business loans and
finance receivables
Principal                  $ 1,010,675     $          -     $  1,010,675     $   686,730     $          -     $    686,730
Fair value                   1,074,546                -        1,074,546         616,287                -          616,287
Fair value as a % of
principal                        106.3 %              - %          106.3 %          89.7 %              - %           89.7 %
Total loans and finance
receivables
Principal                  $ 1,878,426     $     11,789     $  1,890,215     $ 1,263,134     $      8,845     $  1,271,979
Fair value                   1,964,690           18,813        1,983,503       1,241,506           10,289        1,251,795
Fair value as a % of
principal                        104.6 %          159.6 %          104.9 %          98.3 %          116.3 %           98.4 %



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(a)

GAAP measure. The loan and finance receivable balances guaranteed by us relate
to loans originated by third-party lenders through the CSO programs and are not
included in our consolidated balance sheets.
(b)
Amounts represent non-GAAP measures.

At December 31, 2021, the ratio of fair value as a percentage of principal was
104.6% on company owned loans and finance receivables and 104.9% on combined
loans and finance receivables compared to 98.3% on company owned loans and
finance receivables and 98.4% on combined loans and finance receivables at
December 31, 2020. These ratios increased during the year due primarily to lower
delinquency rates and lower than expected charge-offs in the small business
portfolio, partially offset by the impact of the acceleration of originations on
the consumer portfolio, particularly to new customers, which carry a higher risk
of charge-off.

Average Amount Outstanding per Loan and Finance Receivable
The average amount outstanding per loan and finance receivable is calculated as
the total combined loans and finance receivables, gross balance at the end of
the period divided by the total number of combined loans and finance receivables
outstanding at the end of the period. The following table shows the average
amount outstanding per loan and finance receivable by product at December 31,
2021 and 2020:

                                                            As of December 31,
                                                          2021              2020
Average amount outstanding per loan and finance
receivable (in ones)(a)
Consumer loans and finance receivables(b)             $       1,953     $   

3,040

Small business loans and finance receivables                 38,125            29,093
Total loans(b)                                        $       3,849     $       5,721




(a)
The disclosure regarding the average amount per loan is statistical data that is
not included in our consolidated financial statements.
(b)
Includes loans guaranteed by us, which represent loans originated by third-party
lenders through the CSO programs and are not included in our consolidated
balance sheets.

The average amount outstanding per loan decreased to $3,849 as of December 31,
2021 compared to $5,721 from prior year, mainly due to a mix shift in our
consumer loan products, partially offset by higher average amount outstanding
per loan in the small business portfolio as lending has expanded with economic
recovery in 2021.

Average amount of loans and financing receivable

The average loan and finance receivable origination amount is calculated as the
total amount of combined loans and finance receivables originated, renewed and
purchased for the period divided by the total number of combined loans and
finance receivables originated, renewed and purchased for the period. The
following table shows the average loan and finance receivable origination amount
by product for 2021 compared to 2020:

                                                                Year Ended
                                                               December 31,
                                                           2021             

2020

Average loan and finance receivable origination
amount (in ones)(a)
Consumer loans and finance receivables(b)(c)           $        648     $   

426

Small business loans and finance receivables(c)              15,703           13,584
Total loans(b)                                         $      1,419     $        600




(a)
The disclosure regarding the average loan origination amount is statistical data
that is not included in our consolidated financial statements.
(b)
Includes loans guaranteed by us, which represent loans originated by third-party
lenders through the CSO programs and are not included in our consolidated
balance sheets.
(c)
For line of credit accounts the average represents the average amount of each
incremental draw.

The average loan origination amount increased to $1,419 from $600 during 2021
compared to 2020, due primarily to an increase in the mix of loans and finance
receivables held by small businesses in our portfolio as a result of our
acquisition of OnDeck in October 2020 and, to a lesser extent, a strategic
reduction in loan size in response to the COVID-19 pandemic in the prior year.
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Credit performance of financial loans and receivables

We monitor the performance of our loans and finance receivables. Internal
factors such as portfolio composition (e.g., interest rate, loan term, geography
information, customer mix, credit quality) and performance (e.g., delinquency,
loss trends, prepayment rates) are reviewed on a regular basis at various levels
(e.g., product, vintage). We also weigh the impact of relevant, internal
business decisions on portfolio. External factors such as macroeconomic trends,
financial market liquidity expectations, competitive landscape and
legal/regulatory requirements are also reviewed on a regular basis.

The payment status of a customer, including the degree of any delinquency, is a
significant factor in determining estimated charge-offs in the cash flow models
that we use to determine fair value. The following table shows payment status on
outstanding principal, interest and fees as of the end of each of the last eight
quarters (dollars in thousands):


                                                                    2021
                                            First          Second           Third          Fourth
                                           Quarter         Quarter         Quarter         Quarter
Ending combined loans and finance
receivables, including principal and
accrued fees/interest outstanding:
Company owned                            $ 1,265,987     $ 1,416,533     $ 1,650,771     $ 1,944,263
Guaranteed by the Company(a)                   6,792           9,655          13,239          13,750
Ending combined loan and finance
receivables balance(b)                   $ 1,272,779     $ 1,426,188     $ 1,664,010     $ 1,958,013
> 30 days delinquent                          96,228          81,883          90,782         103,213
> 30 days delinquency rate                       7.6 %           5.7 %           5.5 %           5.3 %



                                                                  2020
                                            First         Second         Third         Fourth
                                           Quarter        Quarter       Quarter        Quarter
Ending combined loans and finance
receivables, including principal and
accrued fees/interest outstanding:
Company owned                            $ 1,145,748     $ 816,905     $ 698,964     $ 1,310,171
Guaranteed by the Company(a)                  11,798         6,054         8,100          10,163
Ending combined loan and finance
receivables balance(b)                   $ 1,157,546     $ 822,959     $ 707,064     $ 1,320,334
> 30 days delinquent                          86,294        36,797        25,841         122,666
> 30 days delinquency rate                       7.5 %         4.5 %         3.7 %           9.3 %




(a)
Represents loans originated by third-party lenders through the CSO programs,
which are not included in our consolidated financial statements.
(b)
Non-GAAP measure.
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Consumer loans and financial receivables

The following table includes financial information for our consumer loans and
finance receivables. Delinquency metrics include principal, interest and fees,
and only amounts that are past due (dollars in thousands):

                                                                  2021
                                            First        Second         Third         Fourth
                                           Quarter       Quarter       Quarter       Quarter
Consumer loans and finance receivables:
Consumer combined loan and finance
receivable principal balance:
Company owned                             $ 523,170     $ 585,087     $ 709,781     $  867,751
Guaranteed by the Company(a)                  5,691         8,284        11,354         11,790
Total combined loan and finance
receivable principal balance(b)           $ 528,861     $ 593,371     $ 721,135     $  879,541
Consumer combined loan and finance
receivable fair value balance:
Company owned                             $ 581,398     $ 623,975     $ 723,553     $  890,144
Guaranteed by the Company(a)                  7,246        10,824        16,921         18,813
Ending combined loan and finance
receivable fair value balance(b)          $ 588,644     $ 634,799     $ 740,474     $  908,957
Fair value as a % of principal(b)(c)          111.3 %       107.0 %       102.7 %        103.3 %
Consumer combined loan and finance
receivable balance, including principal
and accrued fees/interest outstanding:
Company owned                             $ 564,934     $ 630,203     $ 768,964     $  927,673
Guaranteed by the Company(a)                  6,792         9,655        13,239         13,750
Ending combined loan and finance
receivable balance(b)                     $ 571,726     $ 639,858     $ 782,203     $  941,423
Average consumer combined loan and
finance receivable balance, including
principal and accrued fees/interest
outstanding:
Company owned(d)                          $ 598,900     $ 580,704     $ 702,818     $  836,147
Guaranteed by the Company(a)(d)               8,670         7,585        11,366         13,212
Average combined loan and finance
receivable balance(b)(d)                  $ 607,570     $ 588,289     $ 714,184     $  849,359

Revenue                                   $ 181,737     $ 174,512     $ 215,432     $  243,570
Change in fair value                        (26,073 )     (49,708 )     (97,061 )     (104,715 )
Net revenue                                 155,664       124,804       118,371        138,855
Net revenue margin                             85.7 %        71.5 %        54.9 %         57.0 %
Change in fair value as a % of average
combined loan and finance receivable
balance(b)(d)                                   4.3 %         8.4 %        13.6 %         12.3 %

Delinquencies:
> 30 days delinquent                      $  24,589     $  26,201     $  45,804     $   59,312
> 30 days delinquent as a % of combined
loan and finance receivable
balance(b)(c)                                   4.3 %         4.1 %         5.9 %          6.3 %

Charge-offs:
Charge-offs (net of recoveries)           $  36,408     $  27,050     $  57,836     $  112,582
Charge-offs (net of recoveries) as a %
of average combined loan and finance
receivable balance(b)(d)                        6.0 %         4.6 %         8.1 %         13.3 %



                                       54
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                                                                   2020
                                             First          Second         Third        Fourth
                                            Quarter        Quarter        Quarter       Quarter
Consumer loans and finance receivables:
Consumer combined loan and finance
receivable principal balance:
Company owned                             $   877,503     $  646,534     $ 569,556     $ 576,404
Guaranteed by the Company(a)                   10,287          5,195         6,905         8,845
Total combined loan and finance
receivable principal balance(b)           $   887,790     $  651,729     $ 576,461     $ 585,249
Consumer combined loan and finance
receivable fair value balance:
Company owned                             $   917,222     $  690,957     $ 617,921     $ 625,219
Guaranteed by the Company(a)                   12,445          6,614         7,411        10,289
Ending combined loan and finance
receivable fair value balance(b)          $   929,667     $  697,571     $ 625,332     $ 635,508
Fair value as a % of principal(b)(c)            104.7 %        107.0 %       108.5 %       108.6 %
Consumer combined loan and finance
receivable balance, including principal
and accrued fees/interest outstanding:
Company owned                             $   959,286     $  693,991     $ 614,676     $ 619,088
Guaranteed by the Company(a)                   11,798          6,054         8,100        10,163
Ending combined loan and finance
receivable balance(b)                     $   971,084     $  700,045     $ 622,776     $ 629,251
Average consumer combined loan and
finance receivable balance, including
principal and accrued fees/interest
outstanding:
Company owned(d)                          $ 1,007,336     $  813,497     $ 646,137     $ 613,683
Guaranteed by the Company(a)(d)                17,846          7,553         6,855         8,861
Average combined loan and finance
receivable balance(b)(d)                  $ 1,025,182     $  821,050     $ 652,992     $ 622,544

Revenue                                   $   335,900     $  236,772     $ 192,567     $ 196,880
Change in fair value                         (210,725 )     (102,159 )     (24,378 )     (31,167 )
Net revenue                                   125,175        134,613       168,189       165,713
Net revenue margin                               37.3 %         56.9 %        87.3 %        84.2 %
Change in fair value as a % of average
combined loan and finance receivable
balance(b)(d)                                    20.6 %         12.4 %         3.7 %         5.0 %

Delinquencies:
> 30 days delinquent                      $    81,654     $   31,149     $  21,559     $  24,793
> 30 days delinquent as a % of combined
loan and finance receivable
balance(b)(c)                                     8.4 %          4.4 %         3.5 %         3.9 %

Charge-offs:
Charge-offs (net of recoveries)           $   191,306     $  141,193     $  30,670     $  34,035
Charge-offs (net of recoveries) as a %
of average combined loan and finance
receivable balance(b)(d)                         18.7 %         17.2 %         4.7 %         5.5 %




(a)
Represents loans originated by third-party lenders through the CSO programs that
we have not yet purchased, which are not included in our consolidated balance
sheets.
(b)
Non-GAAP measure.
(c)
Determined using period-end balances.
(d)
The average combined loan and finance receivable balance is the average of the
month-end balances during the period.

The combined ending loan balance, including principal and accrued fees/interest
outstanding, of consumer loans and finance receivables at December 31, 2021
increased 49.6% to $941.4 million compared to $629.3 million at December 31,
2020, due primarily to increased originations in the current year following the
strategic reduction in originations in the prior year to mitigate risks
associated with the COVID-19 pandemic.

The percentage of loans greater than 30 days delinquent increased to 6.3% at
December 31, 2021, compared to 3.9% at December 31, 2020. The increase was
driven primarily by growth in originations in the current year, particularly to
new customers, which typically default at a higher percentage than returning
customers. At December 31, 2020, this delinquency rate was lower due to our
having a
                                       55
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a more seasoned and lower-risk portfolio due to a reduction in emissions as well as our belief that credit has been favorably impacted by government stimulus efforts.

Charge-offs (net of recoveries) as a percentage of average combined loan balance
increased to 13.3% for the three months ended December 31, 2021 (the "2021
fourth quarter"), compared to 5.5% for the three months ended December 31, 2020
(the "2020 fourth quarter"), driven primarily by growth in originations,
particularly to new customers, which typically default at a higher percentage
than returning customers. In the 2020 fourth quarter, this charge-off rate was
lower due primarily to our having a more seasoned and lower risk portfolio
remaining as originations since the onset of the COVID-19 pandemic had been
significantly lower and the majority of higher risk loans to new customers
originated in prior quarters had been charged off.

The ratio of fair value as a percentage of principal on consumer loans and
finance receivables was 103.3% at December 31, 2021, compared to 108.6% at
December 31, 2020 and 102.7% at September 30, 2021. The increase from September
30, 2021 was primarily driven by the reduction in discount rate during the
fourth quarter. Refer to "Results of Operations-COVID-19" in "Management's
Discussion and Analysis of Financial Condition and Results of Operations" for
additional discussion on loan valuation, including the discount rate assumption.

Small Business Loans and Financial Claims

The following table includes financial information for our small business loans
and finance receivables. Delinquency metrics include principal, interest and
fees, and only amounts that are past due (dollars in thousands):

                                                                   2021
                                           First         Second          Third          Fourth
                                          Quarter        Quarter        Quarter         Quarter
Small business loans and finance
receivables:
Total loan and finance receivable
principal balance                        $ 696,678      $ 781,793      $ 876,668      $ 1,010,675
Ending loan and finance receivable
fair value balance                         649,313        784,728        911,729        1,074,546
Fair value as a % of principal(a)             93.2 %        100.4 %        

104.0% 106.3%

Ending loan and finance receivable
balance, including principal and
accrued fees/interest outstanding        $ 701,053      $ 786,330      $ 881,807      $ 1,016,590

Average loan and finance receivable
balance(b)                               $ 700,348      $ 739,378      $ 837,606      $   956,110

Revenue                                  $  75,560      $  85,561      $ 100,610      $   115,063
Change in fair value                         4,995         45,078         24,515           22,804
Net revenue                                 80,555        130,639        125,125          137,867
Net revenue margin                           106.6 %        152.7 %        124.4 %          119.8 %
Change in fair value as a % of average
loan balance(b)                               (0.7 )%        (6.1 )%        (2.9 )%          (2.4 )%

Delinquencies:
> 30 days delinquent                     $  71,639      $  55,682      $  44,978      $    43,901
> 30 days delinquent as a % of loan
balance(a)                                    10.2 %          7.1 %          5.1 %            4.3 %

Dump :

Charge-offs (net of recoveries)          $  18,042      $   5,102      $   7,060      $     7,677
Charge-offs (net of recoveries) as a %
of average loan and finance receivable
balance(b)                                     2.6 %          0.7 %          0.8 %            0.8 %



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                                                                 2020
                                          First         Second          Third         Fourth
                                         Quarter        Quarter        Quarter        Quarter
Small business loans and finance
receivables:
Total loan and finance receivable
principal balance                       $ 183,905      $ 121,070      $  81,733      $ 686,730
Ending loan and finance receivable
fair value balance                        175,985        108,705         75,449        616,287
Fair value as a % of principal(a)            95.7 %         89.8 %         

92.3% 89.7%

Ending loan and finance receivable
balance, including principal and
accrued fees/interest outstanding       $ 186,462      $ 122,914      $  84,288      $ 691,083

Average loan and finance receivable
balance(b)                              $ 182,862      $ 158,684      $ 101,819      $ 539,675

Revenue                                 $  23,906      $  14,930      $  10,830      $  64,419
Change in fair value                      (24,994 )      (18,513 )        1,601         10,818
Net revenue                                (1,088 )       (3,583 )       12,431         75,237
Net revenue margin                           (4.6 )%       (24.0 )%       114.8 %        116.8 %
Change in fair value as a % of
average loan balance(b)                      13.7 %         11.7 %         (1.6 )%        (2.0 )%

Delinquencies:
> 30 days delinquent                    $   4,640      $   5,648      $   4,282      $  97,873
> 30 days delinquent as a % of loan
balance(a)                                    2.5 %          4.6 %          

5.1% 14.2%

Dump :

Charge-offs (net of recoveries)         $  11,918      $  14,782      $   4,496      $  21,052
Charge-offs (net of recoveries) as a
% of average loan and finance
receivable balance(b)                         6.5 %          9.3 %          4.4 %          3.9 %




(a)
Determined using period-end balances.
(b)
The average loan and finance receivable balance is the average of the month-end
balances during the period.

The combined ending loan balance, including principal and accrued fees/interest
outstanding, of small business loans and finance receivables at December 31,
2021 increased 47.1% to $1,016.6 million compared to $691.1 million at December
31, 2020, due primarily to the acceleration of originations across 2021 as well
as strong credit performance, resulting in low charge-offs.

The percentage of loans and finance receivables greater than 30 days delinquent
decreased to 4.3% at December 31, 2021, compared to 14.2% at December 31, 2020.
Since the acquisition of OnDeck in October 2020, delinquency has improved in all
of our small business portfolios, as we have actively worked with our customers
to understand their financial situations, offering a variety of repayment
options to increase flexibility and reducing or deferring payments for impacted
customers.

Charges (net of recoveries) as a percentage of average loan balance decreased to 0.8% for the fourth quarter of 2021, from 3.9% in the fourth quarter of 2020, mainly due to the recovery of the economy as a whole , our efforts to help customers and the impact of government stimulus measures.

The ratio of fair value as a percentage of principal on small business loans and
finance receivables was 106.3% at December 31, 2021, compared to 89.7% at
December 31, 2020 and 104.0% at September 30, 2021. The increase from September
30, 2021 was due primarily to strong cash collections and improvements in
anticipated cash flow in our valuation models due to reduced risk. The ratio of
fair value as a percentage of principal has improved for the legacy Enova
portfolio since the second quarter of 2020 and the OnDeck portfolio since
acquisition.

Total operating expenses

Total operating expenses increased $284.8 millioni.e. 87.3%, at $611.2 million
in 2021, compared to $326.4 million in 2020.

Marketing expense increased $201.3 million, or 288.6%, to $271.1 million in 2021
compared to $69.8 million in 2020, due primarily to our efforts to capture
increasing market demand for loan products in the current year. The prior year
was abnormally low due to our strategic actions to mitigate risks associated
with the COVID-19 pandemic.
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Operations and technology expense increased $51.4 million, or 53.4%, to $147.7
million in 2021 from $96.3 million in 2020, due primarily to the inclusion of
OnDeck expenses since its acquisition in October 2020 as well as higher variable
underwriting costs due to the increase in originations.

General and administrative expense increased $16.4 million, or 11.6%, to $157.0
million in 2021 compared to $140.6 million in 2020, due primarily to the
inclusion of OnDeck expenses since October 2020, partially offset by various
cost containment initiatives implemented to mitigate the impact of the COVID-19
pandemic.

Depreciation and amortization expense increased $15.7 million, or 79.3%, to
$35.4 million in 2021 compared to $19.7 million in 2020 due primarily by fixed
assets and intangible assets acquired with OnDeck and Pangea and, to a lesser
extent, additional internally-developed software placed into service.

Interest expense, net

Interest expense, net decreased $10.2 million, or 11.7%, to $76.5 million in
2021 compared to $86.7 million in 2020, due primarily to a decrease in the
weighted average interest rate on our outstanding debt to 7.34% in 2021 from
8.76% in 2020, partially offset by an increase in the average amount of debt
outstanding to $1,036.2 million during 2021 from $991.7 million during 2020. See
"-Liquidity and Capital Resources-Current Debt Facilities" below for further
information.

Provision for Income Taxes

The effective tax rate from continuing operations of 23.8% in 2021 was higher
than the 13.1% rate recorded in 2020 due primarily to re-measurement of
unrecognized tax benefits and non-taxable bargain purchase gain in the prior
year and, to a lesser extent, additional interest on unrecognized tax benefits
and state income tax liability adjustments in the current year.

As of December 31, 2021, the balance of unrecognized tax benefits was $44.1
million which is included in "Accounts payable and accrued expenses" on the
consolidated balance sheet, $10.5 million of which, if recognized, would
favorably affect the effective tax rate in the period of recognition. We had
$39.0 million of unrecognized tax benefits as of December 31, 2020. We believe
that we have adequately accounted for any material tax uncertainties in our
existing reserves for all open tax years.

Our U.S. tax returns are subject to examination by federal and state taxing
authorities. The statute of limitations related to our consolidated Federal
income tax returns is closed for all tax years up to and including 2017.
However, the 2014 tax year is still open to the extent of the net operating loss
which we carried back from the 2019 tax return. The years open to examination by
state, local and foreign government authorities vary by jurisdiction, but the
statute of limitation is generally three years from the date the tax return is
filed. For jurisdictions that have generated net operating losses, carryovers
may be subject to the statute of limitations applicable for the year those
carryovers are utilized. In these cases, the period for which the losses may be
adjusted will extend to conform with the statute of limitations for the year in
which the losses are utilized. In most circumstances, this is expected to
increase the length of time that the applicable taxing authority may examine the
carryovers by one year or longer, in limited cases.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act
was enacted and signed into U.S. law to provide economic relief to individuals
and businesses facing economic hardship as a result of the COVID-19 pandemic. We
deferred the timing of federal tax estimates and payroll taxes as permitted by
the CARES Act and have availed ourselves of net operating loss carryback
provisions.

CASH AND CAPITAL RESOURCES

Capital funding strategy

Given the unprecedented economic circumstances resulting from the COVID-19
pandemic and high degree of uncertainty, we have taken several actions to create
a stable and flexible balance sheet that ensures liquidity and funding available
to meet our business obligations. We elected to access our committed funding
lines prior to March 31, 2020 to preserve optionality in the face of
uncertainty, and, prior to June 30, 2020, we repaid the outstanding balance of
our revolving credit agreement. Despite our higher than normal cash balances, we
have drawn and repaid funds from our revolving credit agreement in 2021 to meet
the minimum utilization requirements. As of December 31, 2021, we had cash, cash
equivalents, and restricted cash of $225.9 million, of which $60.4 million was
restricted, compared to $369.2 million, of which $71.9 million was restricted,
as of December 31, 2020. As of December 31, 2021, we had committed and undrawn
funding capacity of $488.2 million. Based on numerous stressed-case modeling
scenarios, we believe we have sufficient liquidity to run our operations for the
foreseeable future. Further, we have no recourse debt obligations due until
September 2024.
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Historically, we have generated significant cash flow through normal operating
activities for funding both long-term and short-term needs. Our near-term
liquidity is managed to ensure that adequate resources are available to fund our
seasonal working capital growth, which is driven by demand for our loan and
financing products. On May 30, 2014, we issued and sold $500.0 million in
aggregate principal amount of 9.75% senior notes due 2021 (the "2021 Senior
Notes"). On September 1, 2017, we issued and sold $250.0 million in aggregate
principal amount of 8.50% Senior Notes due 2024 (the "2024 Senior Notes") and
used the net proceeds, in part, to retire $155.0 million in 2021 Senior Notes.
On January 21, 2018, we redeemed an additional $50.0 million in principal amount
of the outstanding 2021 Senior Notes. On September 19, 2018, we issued and sold
$375.0 million in aggregate principal amount of 8.50% Senior Notes due 2025 (the
"2025 Senior Notes") and used the net proceeds, in part, to retire the remaining
$295.0 million in principal amount of the outstanding 2021 Senior Notes.

On June 30, 2017, we entered into a secured revolving credit agreement (as
amended, the "Credit Agreement"). On April 13, 2018, October 5, 2018, July 1,
2019 and May 10, 2021, we and certain of our operating subsidiaries entered into
amendments to our Credit Agreement. As of February 24, 2022, our available
borrowings under the Credit Agreement were $109.3 million. Since 2016, we have
entered into several loan securitization facilities and offered asset-backed
notes to fund our growth, primarily in our near-prime consumer installment loan
business. As a result of our acquisition of OnDeck in 2020, we added several
additional securitization facilities and asset-backed notes supported by
OnDeck's small business loans, as summarized below under "Current Debt
Facilities." As of February 24, 2022, we had $151.0 million of total committed
and undrawn borrowing capacity under our loan securitization facilities. We
expect that our operating needs, including satisfying our obligations under our
debt agreements and funding our working capital growth, will be satisfied by a
combination of cash flows from operations, borrowings under the Credit
Agreement, or any refinancing, replacement thereof or increase in borrowings
thereunder, and securitization or sale of loans and finance receivables under
our loan securitization facilities.

As of December 31, 2021, we were in compliance with all financial ratios,
covenants and other requirements set forth in our debt agreements. Unexpected
changes in our financial condition or other unforeseen factors may result in our
inability to obtain third-party financing or could increase our borrowing costs
in the future. To the extent we experience short-term or long-term funding
disruptions, we have the ability to adjust our volume of lending and financing
to consumers and small businesses that would reduce cash outflow requirements
while increasing cash inflows through repayments. Additional alternatives may
include the securitization or sale of assets, increased borrowings under the
Credit Agreement, or any refinancing or replacement thereof, and reductions in
capital spending which could be expected to generate additional liquidity.

Capital city

Our Total stockholders' equity increased by $174.3 million to $1,093.1 million
at December 31, 2021 from $918.8 million at December 31, 2020. The increase of
stockholders' equity was driven primarily by net income for the year ended
December 31, 2021, partially offset by $116.7 million in repurchases of our
common stock. Our book value per share outstanding increased to $32.01 at
December 31, 2021 from $25.69 at December 31, 2020, which was primarily driven
by net income and, to a lesser extent, share repurchases in 2021.

On January 31, 2019, we announced the Board of Directors had authorized a share
repurchase program for the repurchase of up to $50.0 million of our common stock
through December 31, 2020 (the "January 2019 Authorization"). On October 24,
2019, we announced the Board of Directors had authorized a new share repurchase
program totaling $75.0 million that expired December 31, 2020 (the "October 2019
Authorization"). The October 2019 Authorization replaced the January 2019
Authorization of $50.0 million. On November 5, 2020, we announced the Board of
Directors had authorized a share repurchase program for up to $50.0 million of
our outstanding common stock through December 31, 2021 (the "2020
Authorization"). The 2020 Authorization was an expansion of the October 2019
Authorization. On November 4, 2021, we announced the Board of Directors
authorized a new share repurchase program totaling $150.0 million through
December 31, 2022 (the "2021 Authorization"). The 2021 Authorization replaced
the 2020 Authorization. On February 9, 2022, we announced the Board of Directors
authorized a new share repurchase program totaling $100.0 million through June
30, 2023 (the "2022 Authorization"). The 2022 Authorization replaced the 2021
Authorization. Repurchases under our repurchase programs will be made in
accordance with applicable securities laws from time to time in the open market,
through privately negotiated transactions or otherwise. The share repurchase
program does not obligate us to purchase any shares of our common stock. The
authorization for the share repurchase programs may be terminated, increased or
decreased by the Board of Directors in its discretion at any time. During 2021,
we paid $111.9 million to repurchase common stock under the share repurchase
programs.

Cash

At December 31, 2021, we had $165.5 million of available unrestricted cash to
fund our future operations compared to approximately $297.3 million at December
31, 2020.

Our cash and cash equivalents at December 31, 2021 were held primarily for
working capital purposes and were used to fund a portion of our lending
activities. From time to time, we use excess cash and cash equivalents to fund
our lending activities. We do not enter into investments for trading or
speculative purposes. Our policy is to invest cash in excess of our immediate
working capital requirements in
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short-term investments, deposit accounts or other arrangements designed to
preserve the principal balance and maintain adequate liquidity. Our excess cash
may be invested primarily in overnight sweep accounts, money market instruments
or similar arrangements that provide competitive returns consistent with our
polices and market conditions.

Our restricted cash primarily consists of funds held in accounts as reserves on
certain debt facilities and as collateral for issuing bank partner transactions.
We have no ability to draw on such funds as long as they remain restricted under
the applicable arrangements but have the ability to use these funds to finance
loan originations, subject to meeting borrowing base requirements. Our policy is
to invest restricted cash held in debt facility related accounts, to the extent
permitted by such debt facility, in investments designed to preserve the
principal balance and provide liquidity. Accordingly, such cash is invested
primarily in money market instruments that offer daily purchase and redemption
and provide competitive returns consistent with our policies and market
conditions.

Current borrowing facilities

The following table summarizes our credit facilities at December 31, 2021.

                                                         Weighted
                                                         average
                                                         interest     Borrowing           Principal
                                     Maturity date       rate(a)       capacity          outstanding
Funding Debt:
2018-1 Securitization Facility       September 2026 (b)   4.34%           150,000               72,706
2018-2 Securitization Facility         July 2025    (c)   4.21%           150,000               75,000
2018-A Securitization Notes             May 2026          7.37%               628                  628
2019-A Securitization Notes            June 2026          7.43%            19,255               19,255

ODR 2021-1 Securitization facility November 2024 (d) 1.85% 150,000

                    -

ODAST III securitization securities May 2027 (e) 2.07% 300,000

              300,000

RAOD securitization facility December 2023 (f) 2.59% 177,632

              101,000
Total funding debt                                        2.90%      $    947,515       $      568,589
Corporate Debt:
8.50% Senior Notes Due 2024          September 2024       8.50%           250,000              250,000

8.50% senior bonds due 2025 September 2025 8.50% 375,000

              375,000
Revolving line of credit               June 2025          4.00%           310,000   (g)        200,000
Total corporate debt                                      7.40%      $    935,000       $      825,000




(a)
The weighted average interest rate is determined based on the rates and
principal balances on December 31, 2021. It does not include the impact of the
amortization of deferred loan origination costs or debt discounts.
(b)
The period during which new borrowings may be made under this facility expires
in September 2024.
(c)
The period during which new borrowings may be made under this facility expires
in July 2023.
(d)
The period during which new borrowings may be made under this facility expires
in November 2023.
(e)
The period during which new borrowings may be made under this facility expires
in April 2024.
(f)
The period during which new borrowings may be made under this facility expires
in December 2022.
(g)
We had outstanding letters of credit under the Revolving line of credit of $0.8
million as of December 31, 2021.

Our ability to fully utilize the available capacity of our credit facilities may also be affected by provisions that limit concentration risk and eligibility.

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Cash flow

Our cash flows and other key indicators of liquidity are summarized as follows
(dollars in thousands):

                                                      Year Ended December 31,
                                                 2021           2020           2019
Cash flows provided by (used in) operating
activities
Cash flows from operating activities -
continuing operations                         $  471,868     $  741,171     $  804,608
Cash flows from operating activities -
discontinued operations                                -           (300 )   

44,031

Cash flow generated by operating activities 471,868 740,871

848 639

Cash flows (used in) provided by investing
activities
Loans and finance receivables                   (923,494 )        2,986       (851,056 )
Acquisitions, net of cash acquired               (29,153 )      109,920     

Purchases of property and equipment              (29,674 )      (29,491 )      (20,062 )
Disposal of a subsidiary                           1,928              -              -
Other investing activities                            25            168             27
Cash flows from investing activities -
continuing operations                           (980,368 )       83,583       (871,091 )
Cash flows from investing activities -
discontinued operations                                -              -        (70,306 )
Total cash flows (used in) provided by
investing activities                            (980,368 )       83,583       (941,397 )
Cash flows provided by (used in) financing
activities                                    $  365,149     $ (535,974 )   $   95,484
Total debt to Adjusted EBITDA (a)                    2.9 x          2.3 x          3.6 x




(a)

Total debt to Adjusted EBITDA, a non-GAAP measure, is calculated using adjusted EBITDA for the twelve months ended for the respective period shown. See “- Non-GAAP Financial Measures – Adjusted EBITDA”.

Cash flow from operating activities

Net cash provided by operating activities decreased $269.3 million, or 36.3%, to
$471.9 million for 2021 from $741.2 million for 2020. The decrease was driven
primarily by reduced originations in the prior year as a result of our efforts
to mitigate the risk of the COVID­19 pandemic and the mix shift from consumer to
small business loans and finance receivables, which generally yield less
revenue.

We believe cash flows from operations and available cash balances and borrowings
under our consumer loan securitization facilities and Credit Agreement, which
may include increased borrowings under our Credit Agreement, any refinancing or
replacement thereof, and additional securitization of consumer loans, will be
sufficient to fund our future operating liquidity needs, including to fund our
working capital growth.

Cash flow from investing activities

Net cash flows used in investing activities increased $1,064.0 million, or
1,272.9%, for 2021 compared to 2020, due primarily to a $926.5 million increase
in net cash used in loans and finance receivables, due to a 172.1% increase in
loans and finance receivables originated or purchased and an 82.1% increase in
loans and finance receivables repaid. Additionally, acquisitions, net of cash
acquired used $29.2 million of cash from investing activities in 2021 compared
to cash provided by acquisitions of $109.9 in 2020.

Cash flow from financing activities

Net cash provided by financing activities in 2021 was $365.1 million compared to
$536.0 million used in financing activities in 2020. Cash flows provided by
financing activities for 2021 primarily reflects net borrowings of $200.0
million under the Credit Agreement and $272.6 million under our securitization
facilities, partially offset by $116.7 million of cash used in treasury shares
purchased, primarily under the share repurchase programs discussed above under
"Capital". Cash flows used in financing activities for 2020 primarily reflects
$124.5 million of net repayments under our Credit Agreement, $354.0 million of
net repayments under our securitization facilities and $56.4 million of cash
used in treasury shares purchased, primarily under the share repurchase
programs.

CRITICAL ACCOUNTING ESTIMATES

Loans and financial receivables

Beginning January 1, 2020, we have elected the fair value option for our loans
and finance receivables. We estimate the fair value of our loans and finance
receivables primarily using discounted cash flow analyses at an individual loan
level to more accurately predict future payments. We adjust contractual cash
flows for estimated losses, prepayments and servicing costs over the estimated
duration of the underlying assets and discount the future cash flows using a
rate of return that we believe a market participant would require. Model
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results may be adjusted by management if we do not believe the output reflects
the fair value of the portfolio, as defined under U.S. GAAP. The models are
updated at each measurement date to capture any changes in internal factors such
as nature, term, volume, payment trends, remaining time to maturity, and
portfolio mix, as well as changes in underwriting or observed trends expected to
impact future performance. We have validated model performance by comparing past
valuations with actual performance noted after each valuation.

The following describes the main inputs to discounted cash flow analyzes that require significant judgment:

Net losses - Net losses are estimates of the principal payments that will not be
repaid over the life of our portfolio, net of the expected principal recoveries
on charged-off receivables. We have developed proprietary underwriting systems
based on data we have collected since the Company's inception. These systems
employ advanced risk analytics to decide whether to approve financing
transactions, to structure the amount and terms of the financings we offer
pursuant to jurisdiction-specific regulations, and to provide customers with
funds quickly and efficiently. Our systems closely monitor collection and
portfolio performance data that we use to continually refine the analytical
models and statistical measures used in making our credit, purchase, marketing,
and collection decisions. Leveraging the data at the core of our business, we
utilize our models to estimate lifetime credit losses for loans and finance
receivables. Inputs to the models include contractual cash flows, customer
application information, historical and current performance, and behavioral
information. Management may also incorporate discretionary adjustments based on
our expectations of future credit performance.

Prepayments - Prepayments are estimates of the amount of principal payments that
will occur earlier than contractually required during the life of a loan and
finance receivable. Prepayments accelerate the timing of principal repayment and
reduce interest payments. Prepayment rates in our discounted cash flow models
are developed using historical results as the basis. Model inputs are similar to
those utilized to estimate net losses and may also incorporate discretionary
adjustments based on our expectations of future performance.

Utilization - Utilization is the rate that a line of credit is utilized in
proportion to the borrowing limit. Utilization rates in our discounted cash flow
model for the OnDeck line of credit product are developed using historical
results as the basis and are used to estimate future draws on the line. Model
inputs are similar to those utilized to estimate net losses and may also
incorporate discretionary adjustments based on our expectations of future
activity.

Servicing costs - Servicing costs applied to the expected cash flows of our
portfolio reflect our estimate of the amount investors would incur to service
the underlying assets for the remainder of their lives. Servicing costs are
derived from our internal analysis of our cost structure considering the
characteristics of our receivables and have been benchmarked against observable
information on comparable assets in the marketplace.

Discount rates - Determined at a product level, the discount rates utilized in
our cash flow analyses reflect our estimates of the rates of return that
investors would require when investing in financial instruments with similar
risk and return characteristics.

Management continuously monitors factors that may impact the fair values of its
products. Internal factors such as portfolio composition (for example, interest
rate, loan term, geography information, customer mix, credit quality) and
performance (e.g., delinquency, loss trends, prepayment rates) are reviewed on a
regular basis at various levels, including product and vintage. The Company also
weighs the impact of relevant, internal business decisions on estimated fair
value. External factors such as macroeconomic trends, financial market liquidity
expectations, competitive landscape and legal or regulatory requirements are
also reviewed on a regular basis. Management also reviews the results of its
fair value model output compared to prior periods for unusual trends, potential
model over- or under-reaction, outlier results and other distorting factors.
Based on these analyses, management may deem it appropriate to adjust model
output to derive management's best estimate of fair value.

Good will

Goodwill represents the excess of the purchase price over the fair value of the
net tangible and identifiable intangible assets acquired in each business
combination. In accordance with Accounting Standards Codification ("ASC") 350,
Goodwill, we test goodwill for potential impairment annually and between annual
tests if an event occurs or circumstances change that would more likely than not
reduce the fair value below its carrying amount.

We have historically performed our annual goodwill impairment test as of June 30
each year. During the year ended December 31, 2021, we voluntarily changed our
annual impairment assessment date from June 30 to October 1 to better align with
our budgeting process and year end as well as to include nearly a full year of
results after our acquisition of OnDeck, which was a material change to our
financial position and results of operations. We believe the change in goodwill
impairment testing date does not represent a material change to our method of
applying an accounting principle in light of our internal controls and
requirements to assess goodwill impairment upon certain triggering events.

We first assess qualitative factors to determine whether it is necessary to
perform the quantitative goodwill impairment test. In assessing the qualitative
factors, we consider relevant events and circumstances including but not limited
to macroeconomic conditions, industry and market environment, our overall
financial performance, cash flow from operating activities, market
capitalization and stock price. If we determine that the quantitative impairment
test is required, we use the income approach to complete our annual goodwill
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assessment. The income approach uses future cash flows and estimated terminal
values that are discounted using a market participant perspective to determine
the fair value, which is then compared to the carrying value to determine if
there is impairment. The income approach includes assumptions about revenue
growth rates, operating margins and terminal growth rates discounted by an
estimated weighted-average cost of capital derived from other publicly-traded
companies that are similar from an operational and economic standpoint.

Income taxes

We account for income taxes under ASC 740, Income Taxes. As part of the process
of preparing our consolidated financial statements, we are required to estimate
income taxes in each of the jurisdictions in which we operate. This process
involves estimating the actual current tax expense together with assessing
temporary differences in recognition of income for tax and accounting purposes.
These differences result in deferred tax assets and liabilities and are included
within the consolidated balance sheets. We must then assess the likelihood that
the deferred tax assets will be recovered from future taxable income and, to the
extent we believe that recovery is not more likely than not, we must establish a
valuation allowance. An expense or benefit is included within the tax provision
in the consolidated statement of income for any increase or decrease in the
valuation allowance for a given period.

We report our loans and finance receivables in the Company's tax returns at fair
market value, as determined for U.S. federal income tax purposes, which differs
from how we report them in the consolidated financial statements due in part to
statutory tax and judicial principles that may lead to different interpretations
of expected credit losses and discount rate assumptions. Changes in the fair
market value of our loans and finance receivables as determined for tax purposes
may have a significant impact on the timing and amount of how income taxes are
recognized in the consolidated financial statements. The estimates of fair
market value are dependent on multiple assumptions, including expected credit
losses and discount rates.

We perform an evaluation of the recoverability of our deferred tax assets on a
quarterly basis. We establish a valuation allowance if it is
more-likely-than-not (greater than 50 percent) that all or some portion of the
deferred tax asset will not be realized. We analyze several factors, including
the nature and frequency of operating losses, our carryforward period for any
losses, the reversal of future taxable temporary differences, the expected
occurrence of future income or loss and the feasibility of available tax
planning strategies to protect against the loss of deferred tax assets.

We account for uncertainty in income taxes in accordance with ASC 740, which
requires that a more-likely-than-not threshold be met before the benefit of a
tax position may be recognized in the consolidated financial statements and
prescribes how such benefit should be measured. We must evaluate tax positions
taken on our tax returns for all periods that are open to examination by taxing
authorities and make a judgment as to whether and to what extent such positions
are more likely than not to be sustained based on the technical merits. We
record interest and penalties related to tax matters as income tax expense in
the consolidated statement of income.

Our judgment is required in determining the provision for income taxes, the
deferred tax assets and liabilities and any valuation allowance recorded against
deferred tax assets. Our judgment is also required in evaluating whether tax
benefits meet the more-likely-than-not threshold for recognition under ASC 740.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Refer to Note 1 in the Notes to the Consolidated Financial Statements in Part
II, Item 8 "Financial Statements and Supplementary Data" in this report for a
discussion of recently issued accounting pronouncements.

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