We use VIEs to securitize loan receivables and arrange public and private asset-backed financing in the ordinary course of business through Synchrony Card Issuance Trust, as well as private asset-backed financing through Synchrony Credit Card Master Note Trust and Synchrony Sales Finance Master Trust. Investors in these entities only have recourse to the assets owned by the entity and not to our general credit. We do not have implicit support arrangements with any VIE and we did not provide non-contractual support for previously transferred loan receivables to any of these VIEs in the three and six months ended June 30, 2025 and 2024. Our VIEs are able to accept new loan receivables and arrange new asset-backed financings, consistent with the requirements and limitations on such activities placed on the VIE by existing investors. Once an account has been designated to a VIE, the contractual arrangements we have require all existing and future loan receivables originated under such account to be transferred to the VIE. The amount of loan receivables held by our VIEs in excess of the minimum amount required under the asset-backed financing arrangements with investors may be removed by us under removal of accounts provisions. All loan receivables held by a VIE are subject to claims of third-party investors.

The loan receivables in these entities have risks and characteristics similar to our other loan receivables and were underwritten to the same standard. Accordingly, the performance of these assets has been similar to our other comparable loan receivables, and the blended performance of the pools of receivables in these entities reflects the eligibility criteria that we apply to determine which receivables are selected for transfer. Contractually, the cash flows from these loan receivables must first be used to pay third-party debt holders, as well as other expenses of the entity. Excess cash flows, if any, are available to us. The creditors of these entities have no claim on our other assets.

(b) Includes $720 million and $40 million of segregated funds held by the VIEs at June 30, 2025 and December 31, 2024, respectively, which are classified as restricted cash and equivalents and included as a component of Other assets in our Condensed Consolidated Statements of Financial Position.

We provide servicing for all of our consolidated VIEs. Collections are required to be placed into segregated accounts owned by each VIE in amounts that meet contractually specified minimum levels. These segregated funds are invested in cash and cash equivalents and are restricted as to their use, principally to pay maturing principal and interest on debt and the related servicing fees. Collections above these minimum levels are remitted to us on a daily basis.

Income (principally, interest and fees on loans) earned by our consolidated VIEs was $1.0 billion for both the three months ended June 30, 2025 and 2024. Related expenses consisted primarily of provision for credit losses of $260 million and $257 million for the three months ended June 30, 2025 and 2024, respectively, and interest expense of $104 million and $110 million for the three months ended June 30, 2025 and 2024, respectively.

Income (principally, interest and fees on loans) earned by our consolidated VIEs was $2.1 billion and $2.0 billion for the six months ended June 30, 2025 and 2024, respectively. Related expenses consisted primarily of provision for credit losses of $462 million and $422 million for the six months ended June 30, 2025 and 2024, respectively, and interest expense of $208 million and $215 million for the six months ended June 30, 2025 and 2024, respectively.

As part of our community reinvestment initiatives, we invest in funds that invest in affordable housing properties and receive affordable housing tax credits for these investments. We account for these investments using the proportional amortization method, where the costs of the investment are amortized in proportion to the income tax credits and other income tax benefits received. These investments are included in Other assets within our Condensed Consolidated Statements of Financial Position totaled $858 million and $776 million at June 30, 2025 and December 31, 2024, respectively, and represent our total exposure for these entities.

For the three months ended June 30, 2025 and 2024, provision for income taxes included amortization expense of $46 million and $24 million, respectively, and tax credits and other tax benefits of $55 million and $28 million, respectively, associated with investments in affordable housing properties. For the six months ended June 30, 2025 and 2024, provision for income taxes included amortization expense of $73 million and $47 million, respectively, and tax credits and other tax benefits of $88 million and $56 million, respectively, associated with investments in affordable housing properties.

Our other investments in non-consolidated VIEs, totaled $285 million and $274 million at June 30, 2025 and December 31, 2024, respectively, are included in Other assets within our Condensed Consolidated Statements of Financial Position. At June 30, 2025, the Company also had investment commitments of $183 million related to these investments.