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

3 Months Ended

Mar. 31, 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	March 31, 2026		December 31, 2025
Large loans	$	1,591,528	$	1,593,171
Small loans		512,473		547,028
Total	$	2,104,001	$	2,140,199

Net finance receivables included net deferred origination fees and costs of $13.8 million and $15.1 million as of March 31, 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 March 31, 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	$	30,525	$	104,813	$	29,643	$	11,862	$	4,022	$	1,423	$	182,288
2		18,984		64,410		17,126		5,431		1,555		292		107,798
3		28,753		103,349		28,501		10,480		3,952		494		175,529
4		38,284		136,967		40,628		15,809		6,415		779		238,882
5		41,321		148,529		46,981		17,737		7,304		1,314		263,186
6		99,365		354,366		109,179		43,939		14,881		2,115		623,845
Total	$	257,232	$	912,434	$	272,058	$	105,258	$	38,129	$	6,417	$	1,591,528
Small Loans:
FICO Band
1	$	26,045	$	60,756	$	8,195	$	1,212	$	170	$	51	$	96,429
2		10,169		27,239		3,986		435		32		2		41,863
3		13,891		39,337		5,839		565		57		8		59,697
4		15,207		46,130		7,653		766		41		4		69,801
5		15,562		47,802		10,596		835		53		5		74,853
6		35,038		105,242		27,978		1,521		44		7		169,830
Total	$	115,912	$	326,506	$	64,247	$	5,334	$	397	$	77	$	512,473
Total Loans:
FICO Band
1	$	56,570	$	165,569	$	37,838	$	13,074	$	4,192	$	1,474	$	278,717
2		29,153		91,649		21,112		5,866		1,587		294		149,661
3		42,644		142,686		34,340		11,045		4,009		502		235,226
4		53,491		183,097		48,281		16,575		6,456		783		308,683
5		56,883		196,331		57,577		18,572		7,357		1,319		338,039
6		134,403		459,608		137,157		45,460		14,925		2,122		793,675
Total	$	373,144	$	1,238,940	$	336,305	$	110,592	$	38,526	$	6,494	$	2,104,001

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:


	Three Months Ended March 31, 2026
Dollars in thousands	2026		2025		2024		2023		2022		Prior		Total Credit Losses
Large loans	$	2	$	20,345	$	14,277	$	5,106	$	1,818	$	394	$	41,942
Small loans		14		19,577		8,535		1,007		81		5		29,219
Total	$	16	$	39,922	$	22,812	$	6,113	$	1,899	$	399	$	71,161


	Three Months Ended March 31, 2025
Dollars in thousands	2025		2024		2023		2022		2021		Prior		Total Credit Losses
Large loans	$	8	$	14,216	$	14,667	$	5,217	$	1,384	$	263	$	35,755
Small loans		11		17,157		7,900		821		57		8		25,954
Total	$	19	$	31,373	$	22,567	$	6,038	$	1,441	$	271	$	61,709

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


	March 31, 2026
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Current	$	1,386,037		87.1	%	$	415,155		81.0	%	$	1,801,192		85.6	%
1 to 29 days past due		110,299		6.9	%		41,576		8.1	%		151,875		7.2	%
Delinquent accounts:
30 to 59 days		22,722		1.4	%		12,513		2.4	%		35,235		1.7	%
60 to 89 days		20,156		1.3	%		12,095		2.4	%		32,251		1.5	%
90 to 119 days		17,478		1.1	%		10,853		2.2	%		28,331		1.4	%
120 to 149 days		17,411		1.1	%		9,787		1.9	%		27,198		1.3	%
150 to 179 days		17,425		1.1	%		10,494		2.0	%		27,919		1.3	%
Total delinquency	$	95,192		6.0	%	$	55,742		10.9	%	$	150,934		7.2	%
Total net finance receivables	$	1,591,528		100.0	%	$	512,473		100.0	%	$	2,104,001		100.0	%
Net finance receivables in nonaccrual status	$	61,117		3.8	%	$	34,677		6.8	%	$	95,794		4.6	%


	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 March 31, 2026 and 2025, the Company reversed $8.0 million and $7.3 million of accrued interest as reductions of interest and fee income, 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 March 31, 2026
Dollars in thousands	Large			Small			Total
Beginning balance	$	152,300		$	68,600		$	220,900
Provision for credit losses		42,148			22,720			64,868
Credit losses		(41,942	)		(29,219	)		(71,161	)
Recoveries		3,094			1,799			4,893
Ending balance	$	155,600		$	63,900		$	219,500
Net finance receivables	$	1,591,528		$	512,473		$	2,104,001
Allowance as percentage of net finance receivables		9.8	%		12.5	%		10.4	%


	As of and For the Three Months Ended March 31, 2025
Dollars in thousands	Large			Small			Total
Beginning balance	$	133,506		$	65,994		$	199,500
Provision for credit losses		34,621			23,371			57,992
Credit losses		(35,755	)		(25,954	)		(61,709	)
Recoveries		2,039			1,278			3,317
Ending balance	$	134,411		$	64,689		$	199,100
Net finance receivables	$	1,345,825		$	544,526		$	1,890,351
Allowance as percentage of net finance receivables		10.0	%		11.9	%		10.5	%

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 March 31, 2026
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	5,953		0.4	%	$	1,971		0.4	%	$	7,924		0.4	%
Interest rate reduction & term extension		1,385		0.1	%		368		0.1	%		1,753		0.1	%
Term extension		394		—			101		—			495		—
Principal forgiveness, interest rate reduction, & term extension		186		—			10		—			196		—
Total	$	7,918		0.5	%	$	2,450		0.5	%	$	10,368		0.5	%


	As of and for the Three Months Ended March 31, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	5,239		0.3	%	$	1,876		0.4	%	$	7,115		0.4	%
Interest rate reduction & term extension		2,317		0.2	%		476		0.1	%		2,793		0.1	%
Term extension		852		0.1	%		145		—			997		0.1	%
Principal forgiveness, interest rate reduction, & term extension		175		—			10		—			185		—
Total	$	8,583		0.6	%	$	2,507		0.5	%	$	11,090		0.6	%

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


	Three Months Ended March 31, 2026
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 18.1%.
	Small loans	Reduced the weighted-average contractual interest rate by 28.4%.
Term extension	Large loans	Added a weighted-average 1.3 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 $0.4 million.
	Small loans	Reduced the amortized cost basis of the loans by $0.2 million.


	Three Months Ended March 31, 2025
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 18.4%.
	Small loans	Reduced the weighted-average contractual interest rate by 29.1%.
Term extension	Large loans	Added a weighted-average 1.3 years to the life of loans.
	Small loans	Added a weighted-average 1.2 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.

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 March 31, 2026
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	3,405	$	1,301	$	4,706
Interest rate reduction & term extension		657		143		800
Term extension		54		21		75
Principal forgiveness, interest rate reduction, & term extension		20		4		24
Total	$	4,136	$	1,469	$	5,605


	As of and for the Three Months Ended March 31, 2025
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	1,466	$	717	$	2,183
Interest rate reduction & term extension		806		155		961
Term extension		89		19		108
Principal forgiveness, interest rate reduction, & term extension		36		—		36
Total	$	2,397	$	891	$	3,288

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:


	March 31, 2026
Dollars in thousands	Large		Small		Total
Current	$	18,379	$	4,650	$	23,029
30 - 89 days past due		2,506		867		3,373
90+ days past due		2,936		1,117		4,053
Total (1)	$	23,821	$	6,634	$	30,455

(1) Excludes modified finance receivables that subsequently charged off of $3.3 million and $1.0 million in large and small loans, respectively.


	March 31, 2025
Dollars in thousands	Large		Small		Total
Current	$	16,029	$	3,929	$	19,958
30 - 89 days past due		2,251		751		3,002
90+ days past due		1,832		784		2,616
Total (1)	$	20,112	$	5,464	$	25,576

(1) Excludes modified finance receivables that subsequently charged off of $1.8 million and $0.4 million in large and small loans, respectively.