Bank Loans and Related Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2025

Composition of Bank Loans and Delinquency Analysis by Loan Segment

The composition of bank loans and delinquency analysis by portfolio segment and class of financing receivable is as follows:


September 30, 2025	Current		30-59 days past due		60-89 days past due		>90 days past due and other nonaccrual loans (3)		Total past due and other nonaccrual loans		Total loans		Allowance for credit losses		Total bank loans – net
Residential real estate:
First Mortgages (1,2)	$	29,304	$	18	$	6	$	33	$	57	$	29,361	$	15	$	29,346
HELOCs (1,2)	417		1		—		3		4		421		1		420
Total residential real estate	29,721		19		6		36		61		29,782		16		29,766
Pledged asset lines	23,380		4		3		3		10		23,390		—		23,390
Other	419		—		—		1		1		420		6		414
Total bank loans	$	53,520	$	23	$	9	$	40	$	72	$	53,592	$	22	$	53,570

December 31, 2024
Residential real estate:
First Mortgages (1,2)	$	27,321	$	37	$	6	$	25	$	68	$	27,389	$	14	$	27,375
HELOCs (1,2)	421		—		—		3		3		424		1		423
Total residential real estate	27,742		37		6		28		71		27,813		15		27,798
Pledged asset lines	17,010		8		—		6		14		17,024		—		17,024
Other	398		—		—		1		1		399		6		393
Total bank loans	$	45,150	$	45	$	6	$	35	$	86	$	45,236	$	21	$	45,215

(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $125 million and $112 million at September 30, 2025 and December 31, 2024, respectively.

(2) At September 30, 2025 and December 31, 2024, 41% and 42%, respectively, of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole.

(3) There were no loans accruing interest that were contractually 90 days or more past due at September 30, 2025 or December 31, 2024.

Changes in Allowance for Credit Losses on Bank Loans

Changes in the allowance for credit losses on bank loans were as follows:


	First Mortgages		HELOCs		Total residential real estate		Pledged asset lines		Other		Total
Balance at June 30, 2024	$	14	$	1	$	15	$	—	$	5	$	20
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	—		—		—		—		—		—
Balance at September 30, 2024	$	14	$	1	$	15	$	—	$	5	$	20

Balance at June 30, 2025	$	15	$	1	$	16	$	—	$	6	$	22
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	—		—		—		—		—		—
Balance at September 30, 2025	$	15	$	1	$	16	$	—	$	6	$	22

Balance at December 31, 2023	$	32	$	2	$	34	$	—	$	4	$	38
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	(18)		(1)		(19)		—		1		(18)
Balance at September 30, 2024	$	14	$	1	$	15	$	—	$	5	$	20

Balance at December 31, 2024	$	14	$	1	$	15	$	—	$	6	$	21
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	1		—		1		—		—		1
Balance at September 30, 2025	$	15	$	1	$	16	$	—	$	6	$	22

Credit Quality Indicators of First Mortgages and HELOCs

The credit quality indicators of the Company’s First Mortgages and HELOCs are detailed below:


	First Mortgages Amortized Cost Basis by Origination Year
September 30, 2025	2025			2024			2023			2022			2021			pre-2021			Total First Mortgages			Revolving HELOCs amortized cost basis			HELOCs converted to term loans			Total HELOCs
Origination FICO
<620	$	—		$	—		$	—		$	3		$	1		$	1		$	5		$	—		$	—		$	—
620 – 679	19			23			4			24			28			22			120			—			1			1
680 – 739	363			306			230			680			1,032			513			3,124			50			25			75
≥740	3,716			2,777			1,667			4,631			9,274			4,047			26,112			251			94			345
Total	$	4,098		$	3,106		$	1,901		$	5,338		$	10,335		$	4,583		$	29,361		$	301		$	120		$	421
Origination LTV
≤70%	$	2,738		$	2,130		$	1,286		$	3,960		$	8,990		$	3,753		$	22,857		$	284		$	84		$	368
>70% – ≤90%	1,360			976			615			1,378			1,345			829			6,503			17			35			52
>90% – ≤100%	—			—			—			—			—			1			1			—			1			1
Total	$	4,098		$	3,106		$	1,901		$	5,338		$	10,335		$	4,583		$	29,361		$	301		$	120		$	421
Updated FICO
<620	$	3		$	4		$	5		$	26		$	28		$	23		$	89		$	3		$	4		$	7
620 – 679	36			34			34			64			103			64			335			6			6			12
680 – 739	355			248			167			491			790			352			2,403			41			20			61
≥740	3,704			2,820			1,695			4,757			9,414			4,144			26,534			251			90			341
Total	$	4,098		$	3,106		$	1,901		$	5,338		$	10,335		$	4,583		$	29,361		$	301		$	120		$	421
Estimated Current LTV (1)
≤70%	$	2,567		$	2,205		$	1,552		$	4,796		$	10,225		$	4,570		$	25,915		$	298		$	120		$	418
>70% – ≤90%	1,527			901			345			534			109			13			3,429			3			—			3
>90% – ≤100%	4			—			4			8			1			—			17			—			—			—

Total	$	4,098		$	3,106		$	1,901		$	5,338		$	10,335		$	4,583		$	29,361		$	301		$	120		$	421
Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Percent of Loans on Nonaccrual Status	0.01		%	0.05		%	0.11		%	0.14		%	0.11		%	0.24		%	0.11		%	0.06		%	2.01		%	0.71		%

(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.


	First Mortgages Amortized Cost Basis by Origination Year
December 31, 2024	2024			2023			2022			2021			pre-2021			Total First Mortgages			Revolving HELOCs amortized cost basis			HELOCs converted to term loans			Total HELOCs
Origination FICO
<620	$	1		$	—		$	2		$	1		$	2		$	6		$	—		$	—		$	—
620 – 679	24			4			26			29			28			111			—			1			1
680 – 739	361			249			724			1,091			576			3,001			47			30			77
≥740	3,203			1,895			4,902			9,796			4,475			24,271			241			105			346
Total	$	3,589		$	2,148		$	5,654		$	10,917		$	5,081		$	27,389		$	288		$	136		$	424
Origination LTV
≤70%	$	2,471		$	1,445		$	4,197		$	9,479		$	4,159		$	21,751		$	267		$	95		$	362
>70% – ≤90%	1,118			703			1,457			1,438			920			5,636			21			40			61
>90% – ≤100%	—			—			—			—			2			2			—			1			1
Total	$	3,589		$	2,148		$	5,654		$	10,917		$	5,081		$	27,389		$	288		$	136		$	424
Updated FICO
<620	$	—		$	3		$	25		$	15		$	21		$	64		$	1		$	5		$	6
620 – 679	34			31			74			97			74			310			6			7			13
680 – 739	339			191			574			871			435			2,410			48			24			72
≥740	3,216			1,923			4,981			9,934			4,551			24,605			233			100			333
Total	$	3,589		$	2,148		$	5,654		$	10,917		$	5,081		$	27,389		$	288		$	136		$	424
Estimated Current LTV (1)
≤70%	$	2,402		$	1,660		$	4,942		$	10,747		$	5,057		$	24,808		$	285		$	136		$	421
>70% – ≤90%	1,187			487			693			166			20			2,553			3			—			3
>90% – ≤100%	—			1			17			3			4			25			—			—			—
>100%	—			—			2			1			—			3			—			—			—
Total	$	3,589		$	2,148		$	5,654		$	10,917		$	5,081		$	27,389		$	288		$	136		$	424
Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Percent of Loans on Nonaccrual Status	0.01		%	0.12		%	0.16		%	0.04		%	0.18		%	0.09		%	0.07		%	2.33		%	0.71		%

(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.

Converting to Amortizing Loans

The following table presents when current outstanding HELOCs will convert to amortizing loans:


September 30, 2025	Balance
Converted to an amortizing loan by period end (1)	$	120
Within 1 year	15
> 1 year – 3 years	38
> 3 years – 5 years	48
> 5 years	200
Total	$	421

(1) Includes $3 million and $11 million of HELOCs converted to amortizing loans during the three and nine months ended September 30, 2025, respectively.