| Schedule of Revenue Generated from Loans and Finance Receivables |
Revenue generated from the Company’s loans and finance receivables for the three and six months ended June 30, 2025 and 2024 was as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Consumer loans and finance receivables revenue |
|
$ |
428,311 |
|
|
$ |
367,558 |
|
|
$ |
859,136 |
|
|
$ |
732,289 |
|
Small business loans and finance receivables revenue |
|
|
326,266 |
|
|
|
251,782 |
|
|
|
630,862 |
|
|
|
488,259 |
|
Total loans and finance receivables revenue |
|
|
754,577 |
|
|
|
619,340 |
|
|
|
1,489,998 |
|
|
|
1,220,548 |
|
Other |
|
|
9,466 |
|
|
|
9,096 |
|
|
|
19,586 |
|
|
|
17,777 |
|
Total revenue |
|
$ |
764,043 |
|
|
$ |
628,436 |
|
|
$ |
1,509,584 |
|
|
$ |
1,238,325 |
|
|
| Components of Company-owned Loans and Finance Receivables at Fair Value |
The components of Company-owned loans and finance receivables at June 30, 2025 and 2024 and December 31, 2024 were as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2025 |
|
|
|
|
|
|
Small |
|
|
|
|
|
|
Consumer |
|
|
Business |
|
|
Total |
|
Principal balance - accrual |
|
$ |
1,229,578 |
|
|
$ |
2,603,816 |
|
|
$ |
3,833,394 |
|
Principal balance - non-accrual |
|
|
145,487 |
|
|
|
162,232 |
|
|
|
307,719 |
|
Total principal balance |
|
|
1,375,065 |
|
|
|
2,766,048 |
|
|
|
4,141,113 |
|
|
|
|
|
|
|
|
|
|
|
Accrued interest and fees |
|
|
127,093 |
|
|
|
30,469 |
|
|
|
157,562 |
|
|
|
|
|
|
|
|
|
|
|
Loans and finance receivables at fair value - accrual |
|
|
1,599,365 |
|
|
|
3,031,100 |
|
|
|
4,630,465 |
|
Loans and finance receivables at fair value - non-accrual |
|
|
68,971 |
|
|
|
73,879 |
|
|
|
142,850 |
|
Loans and finance receivables at fair value |
|
$ |
1,668,336 |
|
|
$ |
3,104,979 |
|
|
$ |
4,773,315 |
|
Difference between principal balance and fair value |
|
$ |
293,271 |
|
|
$ |
338,931 |
|
|
$ |
632,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2024 |
|
|
|
|
|
|
Small |
|
|
|
|
|
|
Consumer |
|
|
Business |
|
|
Total |
|
Principal balance - accrual |
|
$ |
1,056,193 |
|
|
$ |
2,098,129 |
|
|
$ |
3,154,322 |
|
Principal balance - non-accrual |
|
|
120,534 |
|
|
|
148,796 |
|
|
|
269,330 |
|
Total principal balance |
|
|
1,176,727 |
|
|
|
2,246,925 |
|
|
|
3,423,652 |
|
|
|
|
|
|
|
|
|
|
|
Accrued interest and fees |
|
|
109,028 |
|
|
|
37,046 |
|
|
|
146,074 |
|
|
|
|
|
|
|
|
|
|
|
Loans and finance receivables at fair value - accrual |
|
|
1,398,890 |
|
|
|
2,455,039 |
|
|
|
3,853,929 |
|
Loans and finance receivables at fair value - non-accrual |
|
|
22,924 |
|
|
|
62,306 |
|
|
|
85,230 |
|
Loans and finance receivables at fair value |
|
$ |
1,421,814 |
|
|
$ |
2,517,345 |
|
|
$ |
3,939,159 |
|
Difference between principal balance and fair value |
|
$ |
245,087 |
|
|
$ |
270,420 |
|
|
$ |
515,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2024 |
|
|
|
|
|
|
Small |
|
|
|
|
|
|
Consumer |
|
|
Business |
|
|
Total |
|
Principal balance - accrual |
|
$ |
1,210,042 |
|
|
$ |
2,290,132 |
|
|
$ |
3,500,174 |
|
Principal balance - non-accrual |
|
|
143,972 |
|
|
|
166,298 |
|
|
|
310,270 |
|
Total principal balance |
|
|
1,354,014 |
|
|
|
2,456,430 |
|
|
|
3,810,444 |
|
|
|
|
|
|
|
|
|
|
|
Accrued interest and fees |
|
|
128,956 |
|
|
|
27,086 |
|
|
|
156,042 |
|
|
|
|
|
|
|
|
|
|
|
Loans and finance receivables at fair value - accrual |
|
|
1,617,708 |
|
|
|
2,672,714 |
|
|
|
4,290,422 |
|
Loans and finance receivables at fair value - non-accrual |
|
|
21,599 |
|
|
|
74,423 |
|
|
|
96,022 |
|
Loans and finance receivables at fair value |
|
$ |
1,639,307 |
|
|
$ |
2,747,137 |
|
|
$ |
4,386,444 |
|
Difference between principal balance and fair value |
|
$ |
285,293 |
|
|
$ |
290,707 |
|
|
$ |
576,000 |
|
|
| Schedule of Changes in Fair Value of Company-owned Loans and Finance Receivables |
Changes in the fair value of Company-owned loans and finance receivables during the three and six months ended June 30, 2025 and 2024 were as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2025 |
|
|
|
|
|
|
Small |
|
|
|
|
|
|
Consumer |
|
|
Business |
|
|
Total |
|
Balance at beginning of period |
|
$ |
1,616,337 |
|
|
$ |
2,953,482 |
|
|
$ |
4,569,819 |
|
Originations or acquisitions(1) |
|
|
547,572 |
|
|
|
1,238,835 |
|
|
|
1,786,407 |
|
Interest and fees(2) |
|
|
428,311 |
|
|
|
326,266 |
|
|
|
754,577 |
|
Repayments |
|
|
(710,838 |
) |
|
|
(1,308,441 |
) |
|
|
(2,019,279 |
) |
Charge-offs, net(3) |
|
|
(215,004 |
) |
|
|
(127,876 |
) |
|
|
(342,880 |
) |
Net change in fair value(3) |
|
|
(389 |
) |
|
|
22,713 |
|
|
|
22,324 |
|
Effect of foreign currency translation |
|
|
2,347 |
|
|
|
— |
|
|
|
2,347 |
|
Balance at end of period |
|
$ |
1,668,336 |
|
|
$ |
3,104,979 |
|
|
$ |
4,773,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
|
|
|
|
|
|
Small |
|
|
|
|
|
|
Consumer |
|
|
Business |
|
|
Total |
|
Balance at beginning of period |
|
$ |
1,347,165 |
|
|
$ |
2,448,045 |
|
|
$ |
3,795,210 |
|
Originations or acquisitions(1) |
|
|
477,846 |
|
|
|
918,014 |
|
|
|
1,395,860 |
|
Interest and fees(2) |
|
|
367,558 |
|
|
|
251,782 |
|
|
|
619,340 |
|
Repayments |
|
|
(603,296 |
) |
|
|
(1,008,527 |
) |
|
|
(1,611,823 |
) |
Charge-offs, net(3) |
|
|
(161,171 |
) |
|
|
(107,215 |
) |
|
|
(268,386 |
) |
Net change in fair value(3) |
|
|
(2,840 |
) |
|
|
15,246 |
|
|
|
12,406 |
|
Effect of foreign currency translation |
|
|
(3,448 |
) |
|
|
— |
|
|
|
(3,448 |
) |
Balance at end of period |
|
$ |
1,421,814 |
|
|
$ |
2,517,345 |
|
|
$ |
3,939,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
|
|
|
|
|
Small |
|
|
|
|
|
|
Consumer |
|
|
Business |
|
|
Total |
|
Balance at beginning of period |
|
$ |
1,639,307 |
|
|
$ |
2,747,137 |
|
|
$ |
4,386,444 |
|
Originations or acquisitions(1) |
|
|
1,044,194 |
|
|
|
2,460,069 |
|
|
|
3,504,263 |
|
Interest and fees(2) |
|
|
859,136 |
|
|
|
630,862 |
|
|
|
1,489,998 |
|
Repayments |
|
|
(1,447,604 |
) |
|
|
(2,527,503 |
) |
|
|
(3,975,107 |
) |
Charge-offs, net(3) |
|
|
(442,789 |
) |
|
|
(250,427 |
) |
|
|
(693,216 |
) |
Net change in fair value(3) |
|
|
10,339 |
|
|
|
44,841 |
|
|
|
55,180 |
|
Effect of foreign currency translation |
|
|
5,753 |
|
|
|
— |
|
|
|
5,753 |
|
Balance at end of period |
|
$ |
1,668,336 |
|
|
$ |
3,104,979 |
|
|
$ |
4,773,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
|
|
|
|
|
|
Small |
|
|
|
|
|
|
Consumer |
|
|
Business |
|
|
Total |
|
Balance at beginning of period |
|
$ |
1,380,784 |
|
|
$ |
2,248,383 |
|
|
$ |
3,629,167 |
|
Originations or acquisitions(1) |
|
|
885,109 |
|
|
|
1,877,949 |
|
|
|
2,763,058 |
|
Interest and fees(2) |
|
|
732,289 |
|
|
|
488,259 |
|
|
|
1,220,548 |
|
Repayments |
|
|
(1,225,016 |
) |
|
|
(1,926,150 |
) |
|
|
(3,151,166 |
) |
Charge-offs, net(3) |
|
|
(348,590 |
) |
|
|
(206,494 |
) |
|
|
(555,084 |
) |
Net change in fair value(3) |
|
|
1,600 |
|
|
|
35,398 |
|
|
|
36,998 |
|
Effect of foreign currency translation |
|
|
(4,362 |
) |
|
|
— |
|
|
|
(4,362 |
) |
Balance at end of period |
|
$ |
1,421,814 |
|
|
$ |
2,517,345 |
|
|
$ |
3,939,159 |
|
(1) Originations or acquisitions is presented on a cost basis. (2) Included in “Revenue” in the consolidated statements of income. (3) Included in “Change in Fair Value” in the consolidated statements of income.
|