Finance Receivables, Credit Quality Information, and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2026

Finance Receivables, Credit Quality Information, and Allowance for Credit Losses

Note 3. Finance Receivables, Credit Quality Information, and Allowance for Credit Losses

Net finance receivables for the periods indicated consisted of the following:


Dollars in thousands	June 30, 2026		December 31, 2025
Large loans	$	1,659,685	$	1,593,171
Small loans		488,568		547,028
Total	$	2,148,253	$	2,140,199

Net finance receivables included net deferred origination fees and costs of $13.8 million and $15.1 million as of June 30, 2026 and December 31, 2025, respectively.

The credit quality of the Company’s finance receivable portfolio is dependent on the Company’s ability to enforce sound underwriting standards, maintain diligent servicing of the portfolio, and respond to changing economic conditions as it manages and grows its portfolio. The allowance for credit losses uses FICO scores and delinquency as key data points in estimating the allowance. The Company uses six FICO band categories to assess FICO scores. The first three FICO band categories include subprime FICO scores below 620. The fourth and fifth FICO band categories include near-prime FICO scores ranging from 620 to 659. The sixth FICO band category includes prime FICO scores of 660 or higher.

Net finance receivables by product, FICO band at origination, and origination year as of June 30, 2026 are as follows:


	Net Finance Receivables by Origination Year
Dollars in thousands	2026		2025		2024		2023		2022		Prior		Total Net Finance Receivables
Large Loans:
FICO Band
1	$	66,658	$	84,751	$	23,701	$	9,271	$	3,121	$	1,133	$	188,635
2		44,346		51,675		13,494		4,073		1,117		224		114,929
3		66,795		82,296		22,299		8,092		2,825		323		182,630
4		88,259		109,784		32,096		12,147		4,524		488		247,298
5		94,571		120,142		36,827		13,788		5,312		809		271,449
6		231,731		291,079		87,062		33,326		10,353		1,193		654,744
Total	$	592,360	$	739,727	$	215,479	$	80,697	$	27,252	$	4,170	$	1,659,685
Small Loans:
FICO Band
1	$	48,469	$	41,341	$	5,146	$	741	$	116	$	36	$	95,849
2		20,154		18,114		2,468		233		16		1		40,986
3		27,609		25,870		3,383		312		30		7		57,211
4		29,170		31,299		4,444		396		29		3		65,341
5		29,127		33,458		6,475		363		26		4		69,453
6		65,887		75,921		17,296		593		25		6		159,728
Total	$	220,416	$	226,003	$	39,212	$	2,638	$	242	$	57	$	488,568
Total Loans:
FICO Band
1	$	115,127	$	126,092	$	28,847	$	10,012	$	3,237	$	1,169	$	284,484
2		64,500		69,789		15,962		4,306		1,133		225		155,915
3		94,404		108,166		25,682		8,404		2,855		330		239,841
4		117,429		141,083		36,540		12,543		4,553		491		312,639
5		123,698		153,600		43,302		14,151		5,338		813		340,902
6		297,618		367,000		104,358		33,919		10,378		1,199		814,472
Total	$	812,776	$	965,730	$	254,691	$	83,335	$	27,494	$	4,227	$	2,148,253

Net finance receivables by product, FICO band at origination, and origination year as of December 31, 2025 are as follows:


	Net Finance Receivables by Origination Year
Dollars in thousands	2025		2024		2023		2022		2021		Prior		Total Net Finance Receivables
Large Loans:
FICO Band
1	$	119,724	$	36,692	$	15,225	$	5,034	$	1,453	$	382	$	178,510
2		75,189		21,423		6,854		2,086		383		48		105,983
3		121,142		35,473		13,157		5,398		739		51		175,960
4		160,692		50,359		20,102		8,588		1,130		77		240,948
5		173,379		58,320		22,357		9,995		1,893		90		266,034
6		411,650		133,932		55,991		20,631		3,397		135		625,736
Total	$	1,061,776	$	336,199	$	133,686	$	51,732	$	8,995	$	783	$	1,593,171
Small Loans:
FICO Band
1	$	82,635	$	12,526	$	1,937	$	267	$	56	$	13	$	97,434
2		36,601		6,164		783		62		2		—		43,612
3		53,879		9,494		1,042		97		8		—		64,520
4		62,360		12,597		1,428		76		4		3		76,468
5		63,637		16,817		1,732		91		5		1		82,283
6		136,833		42,405		3,365		98		9		1		182,711
Total	$	435,945	$	100,003	$	10,287	$	691	$	84	$	18	$	547,028
Total Loans:
FICO Band
1	$	202,359	$	49,218	$	17,162	$	5,301	$	1,509	$	395	$	275,944
2		111,790		27,587		7,637		2,148		385		48		149,595
3		175,021		44,967		14,199		5,495		747		51		240,480
4		223,052		62,956		21,530		8,664		1,134		80		317,416
5		237,016		75,137		24,089		10,086		1,898		91		348,317
6		548,483		176,337		59,356		20,729		3,406		136		808,447
Total	$	1,497,721	$	436,202	$	143,973	$	52,423	$	9,079	$	801	$	2,140,199

Credit losses by product and origination year for the periods indicated are as follows:


	Six Months Ended June 30, 2026
Dollars in thousands	2026		2025		2024		2023		2022		Prior		Total Credit Losses
Large loans	$	125	$	47,243	$	24,812	$	9,124	$	3,188	$	721	$	85,213
Small loans		205		40,571		13,686		1,608		134		6		56,210
Total	$	330	$	87,814	$	38,498	$	10,732	$	3,322	$	727	$	141,423


	Six Months Ended June 30, 2025
Dollars in thousands	2025		2024		2023		2022		2021		Prior		Total Credit Losses
Large loans	$	222	$	32,547	$	25,552	$	9,316	$	2,348	$	410	$	70,395
Small loans		297		37,573		12,583		1,283		87		19		51,842
Total	$	519	$	70,120	$	38,135	$	10,599	$	2,435	$	429	$	122,237

The contractual delinquency of the net finance receivables portfolio by product and aging for the periods indicated are as follows:


	June 30, 2026
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Current	$	1,432,725		86.3	%	$	391,420		80.1	%	$	1,824,145		84.9	%
1 to 29 days past due		129,732		7.8	%		45,020		9.2	%		174,752		8.1	%
Delinquent accounts:
30 to 59 days		27,259		1.7	%		13,712		2.9	%		40,971		2.0	%
60 to 89 days		21,862		1.3	%		10,901		2.2	%		32,763		1.5	%
90 to 119 days		17,507		1.1	%		8,990		1.8	%		26,497		1.2	%
120 to 149 days		15,506		0.9	%		8,898		1.8	%		24,404		1.1	%
150 to 179 days		15,094		0.9	%		9,627		2.0	%		24,721		1.2	%
Total delinquency	$	97,228		5.9	%	$	52,128		10.7	%	$	149,356		7.0	%
Total net finance receivables	$	1,659,685		100.0	%	$	488,568		100.0	%	$	2,148,253		100.0	%
Net finance receivables in nonaccrual status	$	58,111		3.5	%	$	31,054		6.4	%	$	89,165		4.2	%


	December 31, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Current	$	1,372,102		86.1	%	$	437,005		79.9	%	$	1,809,107		84.5	%
1 to 29 days past due		121,113		7.6	%		48,745		8.9	%		169,858		8.0	%
Delinquent accounts:
30 to 59 days		26,940		1.7	%		14,295		2.6	%		41,235		1.9	%
60 to 89 days		23,576		1.5	%		13,582		2.5	%		37,158		1.7	%
90 to 119 days		18,957		1.2	%		11,861		2.2	%		30,818		1.5	%
120 to 149 days		16,715		1.0	%		11,050		2.0	%		27,765		1.3	%
150 to 179 days		13,768		0.9	%		10,490		1.9	%		24,258		1.1	%
Total delinquency	$	99,956		6.3	%	$	61,278		11.2	%	$	161,234		7.5	%
Total net finance receivables	$	1,593,171		100.0	%	$	547,028		100.0	%	$	2,140,199		100.0	%
Net finance receivables in nonaccrual status	$	62,351		3.9	%	$	38,269		7.0	%	$	100,620		4.7	%

The accrual of interest income on finance receivables is suspended when an account becomes 90 days delinquent. If a loan is charged off, the accrued interest is reversed as a reduction of interest and fee income. During the three months ended June 30, 2026 and 2025, the Company reversed $7.9 million and $7.1 million of accrued interest as reductions of interest and fee income, respectively. The Company reversed $16.0 million and $14.4 million of accrued interest as reductions of interest and fee income for the six months ended June 30, 2026 and 2025, respectively.

The following are changes in the allowance for credit losses by product for the periods indicated:


	As of and For the Three Months Ended June 30, 2026
Dollars in thousands	Large			Small			Total
Beginning balance	$	155,600		$	63,900		$	219,500
Provision for credit losses		45,873			23,133			69,006
Credit losses		(43,271	)		(26,991	)		(70,262	)
Recoveries		3,798			1,958			5,756
Ending balance	$	162,000		$	62,000		$	224,000
Net finance receivables	$	1,659,685		$	488,568		$	2,148,253
Allowance as percentage of net finance receivables		9.8	%		12.7	%		10.4	%


	As of and For the Three Months Ended June 30, 2025
Dollars in thousands	Large			Small			Total
Beginning balance	$	134,411		$	64,689		$	199,100
Provision for credit losses		36,068			24,519			60,587
Credit losses		(34,640	)		(25,888	)		(60,528	)
Recoveries		2,271			1,370			3,641
Ending balance	$	138,110		$	64,690		$	202,800
Net finance receivables	$	1,413,367		$	546,997		$	1,960,364
Allowance as percentage of net finance receivables		9.8	%		11.8	%		10.3	%


	As of and For the Six Months Ended June 30, 2026
Dollars in thousands	Large			Small			Total
Beginning balance	$	152,300		$	68,600		$	220,900
Provision for credit losses		88,021			45,853			133,874
Credit losses		(85,213	)		(56,210	)		(141,423	)
Recoveries		6,892			3,757			10,649
Ending balance	$	162,000		$	62,000		$	224,000
Net finance receivables	$	1,659,685		$	488,568		$	2,148,253
Allowance as percentage of net finance receivables		9.8	%		12.7	%		10.4	%


	As of and For the Six Months Ended June 30, 2025
Dollars in thousands	Large			Small			Total
Beginning balance	$	133,506		$	65,994		$	199,500
Provision for credit losses		70,689			47,890			118,579
Credit losses		(70,395	)		(51,842	)		(122,237	)
Recoveries		4,310			2,648			6,958
Ending balance	$	138,110		$	64,690		$	202,800
Net finance receivables	$	1,413,367		$	546,997		$	1,960,364
Allowance as percentage of net finance receivables		9.8	%		11.8	%		10.3	%

The Company uses certain loan modification programs for borrowers experiencing financial difficulties as a loss mitigation strategy to improve collectability of the loans and assist customers through financial setbacks. The programs consist of offering payment deferrals, refinancing, and, in limited instances, settlements. Customers may also pursue financial assistance through external sources, such as filing for bankruptcy protection. Modification programs available to our customers are described in more detail below:

•

Customers with temporary hardships may be offered payment deferrals related to past due payments. Such deferrals extend the customer’s maturity date and are generally considered insignificant delays, unless the deferral exceeds three deferrals in a rolling twelve-month period.

•

Customers with delinquent loans who meet certain criteria are eligible to receive a reduced interest rate and/or term extension, making the monthly payments more affordable.

•

The Company may also agree to settle a past-due loan by accepting less than the full principal balance owed, in certain limited cases, once it is determined that collection of the entire outstanding balance is unlikely.

•

Customers who receive bankruptcy protection may receive principal forgiveness, interest rate reductions, and/or term extensions.

The information relating to modifications made to borrowers experiencing financial difficulty and their related percentage of applicable net finance receivables for the periods indicated are as follows:


	As of and for the Three Months Ended June 30, 2026
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	5,446		0.4	%	$	1,386		0.3	%	$	6,832		0.3	%
Interest rate reduction & term extension		1,412		0.1	%		259		0.1	%		1,671		0.1	%
Term extension		682		—			111		—			793		—
Principal forgiveness, interest rate reduction, & term extension		125		—			6		—			131		—
Total	$	7,665		0.5	%	$	1,762		0.4	%	$	9,427		0.4	%


	As of and for the Three Months Ended June 30, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	4,484		0.3	%	$	1,391		0.3	%	$	5,875		0.3	%
Interest rate reduction & term extension		1,831		0.1	%		425		0.1	%		2,256		0.1	%
Term extension		924		0.1	%		125		—			1,049		0.1	%
Principal forgiveness, interest rate reduction, & term extension		242		—			6		—			248		—
Total	$	7,481		0.5	%	$	1,947		0.4	%	$	9,428		0.5	%


	As of and for the Six Months Ended June 30, 2026
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	11,123		0.7	%	$	3,230		0.7	%	$	14,353		0.7	%
Interest rate reduction & term extension		2,780		0.2	%		604		0.1	%		3,384		0.2	%
Term extension		729		—			159		—			888		—
Principal forgiveness, interest rate reduction, & term extension		269		—			15		—			284		—
Total	$	14,901		0.9	%	$	4,008		0.8	%	$	18,909		0.9	%


	As of and for the Six Months Ended June 30, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	9,536		0.7	%	$	3,134		0.6	%	$	12,670		0.6	%
Interest rate reduction & term extension		4,111		0.3	%		868		0.2	%		4,979		0.3	%
Term extension		1,008		0.1	%		187		—			1,195		0.1	%
Principal forgiveness, interest rate reduction, & term extension		406		—			16		—			422		—
Total	$	15,061		1.1	%	$	4,205		0.8	%	$	19,266		1.0	%

The financial effects of the modifications made to borrowers experiencing financial difficulty for the periods indicated are as follows:


	Three Months Ended June 30, 2026
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 17.9%.
Interest rate reduction	Small loans	Reduced the weighted-average contractual interest rate by 28.7%.
Term extension	Large loans	Added a weighted-average 1.3 years to the life of loans.
Term extension	Small loans	Added a weighted-average 1.3 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.2 million.
Principal forgiveness	Small loans	Reduced the amortized cost basis of the loans by $0.1 million.


	Three Months Ended June 30, 2025
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 18.4%.
Interest rate reduction	Small loans	Reduced the weighted-average contractual interest rate by 28.8%.
Term extension	Large loans	Added a weighted-average 1.3 years to the life of loans.
Term extension	Small loans	Added a weighted-average 1.3 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.3 million.
Principal forgiveness	Small loans	Reduced the amortized cost basis of the loans by $0.1 million.


	Six Months Ended June 30, 2026
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 18.0%.
Interest rate reduction	Small loans	Reduced the weighted-average contractual interest rate by 28.6%.
Term extension	Large loans	Added a weighted-average 1.4 years to the life of loans.
Term extension	Small loans	Added a weighted-average 1.3 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.6 million.
Principal forgiveness	Small loans	Reduced the amortized cost basis of the loans by $0.3 million.


	Six Months Ended June 30, 2025
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 18.4%.
Interest rate reduction	Small loans	Reduced the weighted-average contractual interest rate by 29.3%.
Term extension	Large loans	Added a weighted-average 1.4 years to the life of loans.
Term extension	Small loans	Added a weighted-average 1.3 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.6 million.
Principal forgiveness	Small loans	Reduced the amortized cost basis of the loans by $0.2 million.

The following tables provide the amortized cost basis for modifications made to borrowers experiencing financial difficulty within the previous twelve months that subsequently defaulted. The Company defines payment default as 90 days past due for this disclosure. The respective amounts for each modification for the periods indicated are as follows:


	As of and for the Three Months Ended June 30, 2026
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	3,186	$	1,148	$	4,334
Interest rate reduction & term extension		560		103		663
Term extension		88		18		106
Principal forgiveness, interest rate reduction, & term extension		60		9		69
Total	$	3,894	$	1,278	$	5,172


	As of and for the Three Months Ended June 30, 2025
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	1,924	$	852	$	2,776
Interest rate reduction & term extension		678		152		830
Term extension		68		18		86
Principal forgiveness, interest rate reduction, & term extension		63		—		63
Total	$	2,733	$	1,022	$	3,755


	As of and for the Six Months Ended June 30, 2026
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	4,502	$	1,547	$	6,049
Interest rate reduction & term extension		709		138		847
Term extension		97		21		118
Principal forgiveness, interest rate reduction, & term extension		72		9		81
Total	$	5,380	$	1,715	$	7,095


	As of and for the Six Months Ended June 30, 2025
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	2,396	$	977	$	3,373
Interest rate reduction & term extension		863		176		1,039
Term extension		106		24		130
Principal forgiveness, interest rate reduction, & term extension		81		—		81
Total	$	3,446	$	1,177	$	4,623

The contractual delinquencies of loans that were modified to borrowers experiencing financial difficulty within the previous twelve months for the periods indicated are as follows:


	June 30, 2026
Dollars in thousands	Large		Small		Total
Current	$	18,247	$	4,274	$	22,521
30 - 89 days past due		3,432		1,063		4,495
90+ days past due		2,513		944		3,457
Total (1)	$	24,192	$	6,281	$	30,473

(1) Excludes modified finance receivables that subsequently charged off of $3.5 million and $1.2 million in large and small loans, respectively.


	June 30, 2025
Dollars in thousands	Large		Small		Total
Current	$	16,807	$	3,944	$	20,751
30 - 89 days past due		3,035		1,084		4,119
90+ days past due		1,845		823		2,668
Total (1)	$	21,687	$	5,851	$	27,538

(1) Excludes modified finance receivables that subsequently charged off of $2.4 million and $0.8 million in large and small loans, respectively.