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

9 Months Ended

Sep. 30, 2025

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	September 30, 2025		December 31, 2024
Large loans	$	1,512,140	$	1,336,780
Small loans		540,877		555,755
Total	$	2,053,017	$	1,892,535

Net finance receivables included net deferred origination fees and costs of $14.7 million and $15.7 million as of September 30, 2025 and December 31, 2024, 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 September 30, 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	$	92,736	$	47,407	$	19,246	$	6,346	$	1,887	$	489	$	168,111
2		57,464		28,315		8,938		2,790		552		73		98,132
3		94,171		46,581		17,004		7,255		1,176		77		166,264
4		124,157		65,001		25,767		11,495		1,826		121		228,367
5		136,430		74,676		28,733		13,309		2,836		149		256,133
6		320,596		168,960		71,846		28,256		5,220		255		595,133
Total	$	825,554	$	430,940	$	171,534	$	69,451	$	13,497	$	1,164	$	1,512,140
Small Loans:
FICO Band
1	$	66,730	$	20,151	$	3,154	$	425	$	77	$	18	$	90,555
2		30,396		9,960		1,350		117		7		—		41,830
3		46,798		15,716		1,906		170		13		1		64,604
4		53,247		20,684		2,537		172		9		5		76,654
5		53,532		26,249		3,418		169		11		1		83,380
6		113,978		62,782		6,849		229		14		2		183,854
Total	$	364,681	$	155,542	$	19,214	$	1,282	$	131	$	27	$	540,877
Total Loans:
FICO Band
1	$	159,466	$	67,558	$	22,400	$	6,771	$	1,964	$	507	$	258,666
2		87,860		38,275		10,288		2,907		559		73		139,962
3		140,969		62,297		18,910		7,425		1,189		78		230,868
4		177,404		85,685		28,304		11,667		1,835		126		305,021
5		189,962		100,925		32,151		13,478		2,847		150		339,513
6		434,574		231,742		78,695		28,485		5,234		257		778,987
Total	$	1,190,235	$	586,482	$	190,748	$	70,733	$	13,628	$	1,191	$	2,053,017

Net finance receivables by product, FICO band at origination, and origination year as of December 31, 2024 are as follows:


	Net Finance Receivables by Origination Year
Dollars in thousands	2024		2023		2022		2021		2020		Prior		Total Net Finance Receivables
Large Loans:
FICO Band
1	$	86,776	$	37,750	$	12,457	$	3,950	$	793	$	373	$	142,099
2		55,211		19,464		6,171		1,602		173		92		82,713
3		90,642		35,777		16,579		4,224		339		59		147,620
4		125,867		52,564		25,521		6,140		570		100		210,762
5		137,243		58,604		28,564		8,148		784		36		233,379
6		300,714		140,149		62,303		15,514		1,464		63		520,207
Total	$	796,453	$	344,308	$	151,595	$	39,578	$	4,123	$	723	$	1,336,780
Small Loans:
FICO Band
1	$	67,809	$	11,905	$	1,737	$	257	$	40	$	28	$	81,776
2		32,851		5,799		755		61		4		2		39,472
3		52,846		9,456		1,061		76		4		2		63,445
4		67,200		12,903		1,161		94		9		7		81,374
5		75,458		16,882		1,500		69		3		3		93,915
6		160,551		32,671		2,462		80		5		4		195,773
Total	$	456,715	$	89,616	$	8,676	$	637	$	65	$	46	$	555,755
Total Loans:
FICO Band
1	$	154,585	$	49,655	$	14,194	$	4,207	$	833	$	401	$	223,875
2		88,062		25,263		6,926		1,663		177		94		122,185
3		143,488		45,233		17,640		4,300		343		61		211,065
4		193,067		65,467		26,682		6,234		579		107		292,136
5		212,701		75,486		30,064		8,217		787		39		327,294
6		461,265		172,820		64,765		15,594		1,469		67		715,980
Total	$	1,253,168	$	433,924	$	160,271	$	40,215	$	4,188	$	769	$	1,892,535

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


	Nine Months Ended September 30, 2025
Dollars in thousands	2025		2024		2023		2022		2021		Prior		Total Credit Losses
Large loans	$	2,765	$	50,992	$	32,665	$	11,856	$	2,956	$	493	$	101,727
Small loans		4,191		55,071		14,919		1,491		106		30		75,808
Total	$	6,956	$	106,063	$	47,584	$	13,347	$	3,062	$	523	$	177,535


	Nine Months Ended September 30, 2024
Dollars in thousands	2024		2023		2022		2021		2020		Prior		Total Credit Losses
Large loans	$	2,346	$	51,378	$	33,207	$	9,525	$	1,297	$	408	$	98,161
Small loans		3,766		44,676		10,595		951		51		31		60,070
Total	$	6,112	$	96,054	$	43,802	$	10,476	$	1,348	$	439	$	158,231

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


	September 30, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Current	$	1,307,304		86.4	%	$	433,052		80.1	%	$	1,740,356		84.8	%
1 to 29 days past due		118,971		7.9	%		49,409		9.1	%		168,380		8.2	%
Delinquent accounts:
30 to 59 days		24,676		1.7	%		15,424		2.9	%		40,100		1.9	%
60 to 89 days		18,842		1.2	%		13,072		2.4	%		31,914		1.6	%
90 to 119 days		15,496		1.0	%		10,808		2.0	%		26,304		1.2	%
120 to 149 days		13,992		0.9	%		9,730		1.8	%		23,722		1.2	%
150 to 179 days		12,859		0.9	%		9,382		1.7	%		22,241		1.1	%
Total delinquency	$	85,865		5.7	%	$	58,416		10.8	%	$	144,281		7.0	%
Total net finance receivables	$	1,512,140		100.0	%	$	540,877		100.0	%	$	2,053,017		100.0	%
Net finance receivables in nonaccrual status	$	54,994		3.6	%	$	34,694		6.4	%	$	89,688		4.4	%


	December 31, 2024
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Current	$	1,139,070		85.2	%	$	451,311		81.2	%	$	1,590,381		84.0	%
1 to 29 days past due		109,656		8.2	%		46,656		8.4	%		156,312		8.3	%
Delinquent accounts:
30 to 59 days		22,909		1.7	%		14,039		2.5	%		36,948		1.9	%
60 to 89 days		21,493		1.6	%		13,749		2.5	%		35,242		1.9	%
90 to 119 days		16,609		1.3	%		11,476		2.1	%		28,085		1.5	%
120 to 149 days		14,357		1.1	%		9,630		1.7	%		23,987		1.3	%
150 to 179 days		12,686		0.9	%		8,894		1.6	%		21,580		1.1	%
Total delinquency	$	88,054		6.6	%	$	57,788		10.4	%	$	145,842		7.7	%
Total net finance receivables	$	1,336,780		100.0	%	$	555,755		100.0	%	$	1,892,535		100.0	%
Net finance receivables in nonaccrual status	$	54,228		4.1	%	$	34,602		6.2	%	$	88,830		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 September 30, 2025 and 2024, the Company reversed $6.3 million and $5.7 million of accrued interest as reductions of interest and fee income, respectively. The Company reversed $20.7 million and $17.3 million of accrued interest as reductions of interest and fee income for the nine months ended September 30, 2025 and 2024, 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 September 30, 2025
Dollars in thousands	Large			Small			Total
Beginning balance	$	138,110		$	64,690		$	202,800
Provision for credit losses		35,215			25,259			60,474
Credit losses		(31,332	)		(23,966	)		(55,298	)
Recoveries		2,537			1,487			4,024
Ending balance	$	144,530		$	67,470		$	212,000
Net finance receivables	$	1,512,140		$	540,877		$	2,053,017
Allowance as percentage of net finance receivables		9.6	%		12.5	%		10.3	%


	As of and For the Three Months Ended September 30, 2024
Dollars in thousands	Large			Small			Total
Beginning balance	$	123,978		$	61,422		$	185,400
Provision for credit losses		34,768			19,581			54,349
Credit losses		(30,493	)		(19,932	)		(50,425	)
Recoveries		1,717			1,059			2,776
Ending balance	$	129,970		$	62,130		$	192,100
Net finance receivables	$	1,293,410		$	526,346		$	1,819,756
Allowance as percentage of net finance receivables		10.0	%		11.8	%		10.6	%


	As of and For the Nine Months Ended September 30, 2025
Dollars in thousands	Large			Small			Total
Beginning balance	$	133,506		$	65,994		$	199,500
Provision for credit losses		105,904			73,149			179,053
Credit losses		(101,727	)		(75,808	)		(177,535	)
Recoveries		6,847			4,135			10,982
Ending balance	$	144,530		$	67,470		$	212,000
Net finance receivables	$	1,512,140		$	540,877		$	2,053,017
Allowance as percentage of net finance receivables		9.6	%		12.5	%		10.3	%


	As of and For the Nine Months Ended September 30, 2024
Dollars in thousands	Large			Small			Total
Beginning balance	$	127,992		$	59,408		$	187,400
Provision for credit losses		94,916			59,658			154,574
Credit losses		(98,161	)		(60,070	)		(158,231	)
Recoveries		5,223			3,134			8,357
Ending balance	$	129,970		$	62,130		$	192,100
Net finance receivables	$	1,293,410		$	526,346		$	1,819,756
Allowance as percentage of net finance receivables		10.0	%		11.8	%		10.6	%

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 September 30, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	6,011		0.4	%	$	1,894		0.3	%	$	7,905		0.3	%
Interest rate reduction & term extension		1,421		0.1	%		297		0.1	%		1,718		0.1	%
Term extension		885		0.1	%		175		—			1,060		0.1	%
Principal forgiveness, interest rate reduction, & term extension		147		—			6		—			153		—
Total	$	8,464		0.6	%	$	2,372		0.4	%	$	10,836		0.5	%


	As of and for the Three Months Ended September 30, 2024
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	2,943		0.2	%	$	1,334		0.3	%	$	4,277		0.2	%
Interest rate reduction & term extension		2,110		0.2	%		386		0.1	%		2,496		0.1	%
Term extension		1,108		0.1	%		199		—			1,307		0.1	%
Principal forgiveness, interest rate reduction, & term extension		110		—			5		—			115		—
Total	$	6,271		0.5	%	$	1,924		0.4	%	$	8,195		0.5	%


	As of and for the Nine Months Ended September 30, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	14,350		0.9	%	$	4,490		0.9	%	$	18,840		0.9	%
Interest rate reduction & term extension		5,331		0.4	%		1,076		0.2	%		6,407		0.3	%
Term extension		1,211		0.1	%		240		—			1,451		0.1	%
Principal forgiveness, interest rate reduction, & term extension		518		—			18		—			536		—
Total	$	21,410		1.4	%	$	5,824		1.1	%	$	27,234		1.3	%


	As of and for the Nine Months Ended September 30, 2024
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	3,435		0.3	%	$	1,468		0.3	%	$	4,903		0.3	%
Interest rate reduction & term extension		8,000		0.6	%		1,331		0.3	%		9,331		0.5	%
Term extension		2,082		0.2	%		470		0.1	%		2,552		0.1	%
Principal forgiveness, interest rate reduction, & term extension		385		—			23		—			408		—
Total	$	13,902		1.1	%	$	3,292		0.6	%	$	17,194		0.9	%

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


	Three Months Ended September 30, 2025
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 17.8%.
	Small loans	Reduced the weighted-average contractual interest rate by 28.6%.
Term extension	Large loans	Added a weighted-average 1.2 years to the life of loans.
	Small loans	Added a weighted-average 1.0 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.3 million.
	Small loans	Reduced the amortized cost basis of the loans by $0.1 million.


	Three Months Ended September 30, 2024
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 15.0%.
	Small loans	Reduced the weighted-average contractual interest rate by 26.8%.
Term extension	Large loans	Added a weighted-average 1.2 years to the life of loans.
	Small loans	Added a weighted-average 1.1 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.3 million.
	Small loans	Reduced the amortized cost basis of the loans by $0.1 million.


	Nine Months Ended September 30, 2025
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 18.2%.
	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.
	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 $0.9 million.
	Small loans	Reduced the amortized cost basis of the loans by $0.3 million.


	Nine Months Ended September 30, 2024
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 11.2%.
	Small loans	Reduced the weighted-average contractual interest rate by 22.6%.
Term extension	Large loans	Added a weighted-average 1.4 years to the life of loans.
	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 $0.9 million.
	Small loans	Reduced the amortized cost basis of the loans by $0.3 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 September 30, 2025
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	2,828	$	1,185	$	4,013
Interest rate reduction & term extension		859		197		1,056
Term extension		159		22		181
Principal forgiveness, interest rate reduction, & term extension		31		3		34
Total	$	3,877	$	1,407	$	5,284


	As of and for the Three Months Ended September 30, 2024
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	53	$	11	$	64
Interest rate reduction & term extension		1,417		228		1,645
Term extension		276		69		345
Principal forgiveness, interest rate reduction, & term extension		20		2		22
Total	$	1,766	$	310	$	2,076


	As of and for the Nine Months Ended September 30, 2025
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	3,706	$	1,428	$	5,134
Interest rate reduction & term extension		1,159		235		1,394
Term extension		197		35		232
Principal forgiveness, interest rate reduction, & term extension		55		3		58
Total	$	5,117	$	1,701	$	6,818


	As of and for the Nine Months Ended September 30, 2024
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	71	$	11	$	82
Interest rate reduction & term extension		1,793		298		2,091
Term extension		317		78		395
Principal forgiveness, interest rate reduction, & term extension		34		6		40
Total	$	2,215	$	393	$	2,608

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:


	September 30, 2025
Dollars in thousands	Large		Small		Total
Current	$	18,393	$	4,269	$	22,662
30 - 89 days past due		3,016		917		3,933
90+ days past due		2,692		1,180		3,872
Total (1)	$	24,101	$	6,366	$	30,467

(1) Excludes modified finance receivables that subsequently charged off of $2.3 million and $0.9 million in large and small loans, respectively.


	September 30, 2024
Dollars in thousands	Large		Small		Total
Current	$	13,395	$	2,978	$	16,373
30 - 89 days past due		1,670		405		2,075
90+ days past due		1,275		256		1,531
Total (1)	$	16,340	$	3,639	$	19,979

(1) Excludes modified finance receivables that subsequently charged off of $1.2 million and $0.2 million in large and small loans, respectively.