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Securities Available for Sale | 6 Months Ended
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Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract] |
Securities Available for Sale | Securities Available for Sale The amortized cost, gross unrealized gains and losses, and fair value of available for sale (AFS) securities were as follows:
June 30, 2026 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Fair Value
Senior asset-backed securities related to Structured Program transactions(1) | $ | 3,390,657 |  |  | $ | 8,791 |  |  | $ | (5,394) |  |  | $ | — |  |  | $ | 3,394,054 |
Other asset-backed securities related to Structured Program transactions(2) | 266,096 |  |  | 186 |  |  | (4,481) |  |  | (3,981) |  |  | 257,820 |
U.S. agency residential mortgage-backed securities | 277,218 |  |  | 235 |  |  | (34,078) |  |  | — |  |  | 243,375 |
U.S. agency securities | 81,467 |  |  | — |  |  | (11,185) |  |  | — |  |  | 70,282 |
Mortgage-backed securities | 59,188 |  |  | 16 |  |  | (5,398) |  |  | — |  |  | 53,806 |
Municipal securities | 3,205 |  |  | — |  |  | (527) |  |  | — |  |  | 2,678 |
Other securities | 25,195 |  |  | — |  |  | (449) |  |  | — |  |  | 24,746 |
Total securities available for sale | $ | 4,103,026 |  |  | $ | 9,228 |  |  | $ | (61,512) |  |  | $ | (3,981) |  |  | $ | 4,046,761 |
December 31, 2025 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Fair Value
Senior asset-backed securities related to Structured Program transactions(1) | $ | 3,065,885 |  |  | $ | 26,525 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,092,410 |
Other asset-backed securities related to Structured Program transactions(2) | 224,802 |  |  | 28 |  |  | (1,367) |  |  | (4,093) |  |  | 219,370 |
U.S. agency residential mortgage-backed securities | 267,853 |  |  | 504 |  |  | (32,296) |  |  | — |  |  | 236,061 |
U.S. agency securities | 84,464 |  |  | — |  |  | (10,602) |  |  | — |  |  | 73,862 |
Mortgage-backed securities | 60,423 |  |  | 135 |  |  | (4,961) |  |  | — |  |  | 55,597 |
Municipal securities | 3,215 |  |  | — |  |  | (609) |  |  | — |  |  | 2,606 |
Other securities | 27,138 |  |  | 45 |  |  | (380) |  |  | — |  |  | 26,803 |
Total securities available for sale | $ | 3,733,780 |  |  | $ | 27,237 |  |  | $ | (50,215) |  |  | $ | (4,093) |  |  | $ | 3,706,709 |
(1) Excludes the basis adjustment for securities previously designated in fair value hedges under the portfolio layer method. See “Note 7. Derivative Instruments and Hedging Activities” for additional information. (2) As of June 30, 2026 and December 31, 2025, $226.7 million and $200.0 million, respectively, of the other asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company’s obligations as a “sponsor” under the U.S. Risk Retention Rules. A summary of AFS securities with unrealized losses, aggregated by period of continuous unrealized loss, is as follows:
| Less than 12 months |  | 12 months or longer |  | Total
June 30, 2026 | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Senior asset-backed securities related to Structured Program transactions | $ | 1,662,202 |  |  | $ | (5,394) |  |  | $ | — |  |  | $ | — |  |  | $ | 1,662,202 |  |  | $ | (5,394) |
U.S. agency residential mortgage-backed securities | 57,131 |  |  | (1,041) |  |  | 172,276 |  |  | (33,037) |  |  | 229,407 |  |  | (34,078) |
Other asset-backed securities related to Structured Program transactions | 158,040 |  |  | (2,926) |  |  | 44,543 |  |  | (1,555) |  |  | 202,583 |  |  | (4,481) |
U.S. agency securities | — |  |  | — |  |  | 70,282 |  |  | (11,185) |  |  | 70,282 |  |  | (11,185) |
Mortgage-backed securities | 21,519 |  |  | (260) |  |  | 30,184 |  |  | (5,138) |  |  | 51,703 |  |  | (5,398) |
Municipal securities | — |  |  | — |  |  | 2,678 |  |  | (527) |  |  | 2,678 |  |  | (527) |
Other securities | 5,928 |  |  | (64) |  |  | 8,338 |  |  | (385) |  |  | 14,266 |  |  | (449) |
Total securities with unrealized losses | $ | 1,904,820 |  |  | $ | (9,685) |  |  | $ | 328,301 |  |  | $ | (51,827) |  |  | $ | 2,233,121 |  |  | $ | (61,512) |
| Less than 12 months |  | 12 months or longer |  | Total
December 31, 2025 | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. agency residential mortgage-backed securities | $ | 20,017 |  |  | $ | (266) |  |  | $ | 181,150 |  |  | $ | (32,030) |  |  | $ | 201,167 |  |  | $ | (32,296) |
Other asset-backed securities related to Structured Program transactions | 95,494 |  |  | (1,034) |  |  | 23,719 |  |  | (333) |  |  | 119,213 |  |  | (1,367) |
U.S. agency securities | — |  |  | — |  |  | 73,862 |  |  | (10,602) |  |  | 73,862 |  |  | (10,602) |
Mortgage-backed securities | 1,874 |  |  | (5) |  |  | 36,167 |  |  | (4,956) |  |  | 38,041 |  |  | (4,961) |
Municipal securities | — |  |  | — |  |  | 2,606 |  |  | (609) |  |  | 2,606 |  |  | (609) |
Other securities | 1,610 |  |  | (10) |  |  | 9,544 |  |  | (370) |  |  | 11,154 |  |  | (380) |
Total securities with unrealized losses | $ | 118,995 |  |  | $ | (1,315) |  |  | $ | 327,048 |  |  | $ | (48,900) |  |  | $ | 446,043 |  |  | $ | (50,215) |
The majority of unrealized losses as of both June 30, 2026 and December 31, 2025 were related to U.S. agency-backed securities and mortgage-backed securities. Management considers these securities to be of the highest credit quality and rating given the guarantee of principal and interest by certain U.S. government agencies or government-sponsored agencies. Most of the remaining securities in an unrealized loss position in the Company’s AFS investment portfolio at June 30, 2026 were rated investment grade. Substantially all of these unrealized losses were caused by prior increases in interest rates. Additionally, the Company does not intend to sell the securities in loss positions, nor is it more likely than not that it will be required to sell the securities prior to recovery of the amortized cost basis. For a description of management’s quarterly evaluation of AFS securities in an unrealized loss position, see “Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies” in our Annual Report. The following table presents the activity in the allowance for credit losses (ACL) for AFS securities, by security type:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Other asset-backed securities related to Structured Program transactions: |  |  |  |  |  |  |
Allowance for credit losses, beginning of period | $ | 3,816 |  |  | $ | 4,848 |  |  | $ | 4,093 |  |  | $ | 3,527 |
Credit loss expense (benefit) for securities available for sale | 165 |  |  | (819) |  |  | (112) |  |  | 502 |
Allowance for credit losses, end of period | $ | 3,981 |  |  | $ | 4,029 |  |  | $ | 3,981 |  |  | $ | 4,029 |
The contractual maturities of AFS securities were as follows:
June 30, 2026 | Amortized Cost |  | Fair Value |  | Weighted- average Yield(1)
Due within 1 year: |  |  |  |  |
U.S. agency securities | $ | 3,000 |  |  | $ | 2,978 |  |  |
Total due within 1 year | 3,000 |  |  | 2,978 |  |  | 3.00 | %
Due after 1 year through 5 years: |  |  |  |  |
Senior asset-backed securities related to Structured Program transactions | 3,390,657 |  |  | 3,394,054 |  |  |
Other asset-backed securities related to Structured Program transactions | 266,096 |  |  | 257,820 |  |  |
Mortgage-backed securities | 2,517 |  |  | 2,370 |  |  |
U.S. agency securities | 1,850 |  |  | 1,790 |  |  |
Municipal securities | 457 |  |  | 431 |  |  |
U.S. agency residential mortgage-backed securities | 101 |  |  | 97 |  |  |
Other securities | 10,430 |  |  | 10,430 |  |  |
Total due after 1 year through 5 years | 3,672,108 |  |  | 3,666,992 |  |  | 5.98 | %
Due after 5 years through 10 years: |  |  |  |  |
U.S. agency securities | 39,464 |  |  | 34,844 |  |  |
U.S. agency residential mortgage-backed securities | 2,355 |  |  | 2,265 |  |  |
Mortgage-backed securities | 863 |  |  | 760 |  |  |
Municipal securities | 153 |  |  | 141 |  |  |
Other securities | 8,148 |  |  | 8,061 |  |  |
Total due after 5 years through 10 years | 50,983 |  |  | 46,071 |  |  | 3.44 | %
Due after 10 years: |  |  |  |  |
U.S. agency residential mortgage-backed securities | 274,762 |  |  | 241,013 |  |  |
Mortgage-backed securities | 55,808 |  |  | 50,676 |  |  |
U.S. agency securities | 37,153 |  |  | 30,670 |  |  |
Municipal securities | 2,595 |  |  | 2,106 |  |  |
Other securities | 6,617 |  |  | 6,255 |  |  |
Total due after 10 years | 376,935 |  |  | 330,720 |  |  | 3.15 | %
Total securities available for sale | $ | 4,103,026 |  |  | $ | 4,046,761 |  |  | 5.67 | %
(1) The weighted-average yield is computed using the average month-end amortized cost during the six months ended June 30, 2026. There were no sales of AFS securities during the second quarters and first halves of 2026 and 2025.

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