v3.25.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present, by level within the fair value hierarchy, the Company’s assets and liabilities measured at fair value on a recurring basis:
June 30, 2025
Level 1
Level 2
Level 3
Balance at
Fair Value
Assets:
Loans held for sale at fair value$— $— $1,008,168 $1,008,168 
Loans held for investment at fair value
— — 631,736 631,736 
Securities available for sale:
Senior asset-backed securities related to Structured Program transactions— — 2,962,475 2,962,475 
U.S. agency residential mortgage-backed securities— 227,617 — 227,617 
Other asset-backed securities related to Structured Program transactions— — 184,032 184,032 
U.S. agency securities— 75,134 — 75,134 
Mortgage-backed securities— 56,553 — 56,553 
Other asset-backed securities— 18,871 — 18,871 
Municipal securities— 2,460 — 2,460 
Total securities available for sale— 380,635 3,146,507 3,527,142 
Servicing assets— — 57,909 57,909 
Other assets— 1,968 — 1,968 
Total assets$— $382,603 $4,844,320 $5,226,923 
Liabilities:
Other liabilities$— $3,513 $5,851 $9,364 
Total liabilities$— $3,513 $5,851 $9,364 
December 31, 2024
Level 1
Level 2
Level 3
Balance at
Fair Value
Assets:
Loans held for sale at fair value$— $— $636,352 $636,352 
Loans held for investment at fair value
— — 1,027,798 1,027,798 
Securities available for sale:
Senior asset-backed securities related to Structured Program transactions— — 2,899,824 2,899,824 
U.S. agency residential mortgage-backed securities— 226,925 — 226,925 
Other asset-backed securities related to Structured Program transactions
— — 169,948 169,948 
U.S. agency securities— 75,946 — 75,946 
Mortgage-backed securities
— 56,674 — 56,674 
Other asset-backed securities— 20,792 — 20,792 
Municipal securities— 2,539 — 2,539 
Total securities available for sale— 382,876 3,069,772 3,452,648 
Servicing assets— — 60,697 60,697 
Other assets— 5,820 — 5,820 
Total assets$— $388,696 $4,794,619 $5,183,315 
Liabilities:
Other liabilities$— $5,019 $11,799 $16,818 
Total liabilities$— $5,019 $11,799 $16,818 
Schedule of Significant Unobservable Inputs Used in the Fair Value Measurement of Loans HFS, Loans HFI, Senior Asset-Backed Securities, Other Asset-Backed Securities and Servicing Assets
The following significant unobservable inputs were used in the fair value measurement of loans HFS:
June 30, 2025December 31, 2024
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rate6.8 %13.9 %7.8 %7.1 %11.9 %7.9 %
Annualized net charge-off rate (1)
1.5 %17.3 %4.9 %1.8 %21.2 %5.4 %
Annualized prepayment rate (1)
18.0 %33.3 %24.0 %15.0 %27.6 %20.4 %
(1)    The weighted-average rate is calculated using the original principal balance of each loan pool.
The following significant unobservable inputs were used in the fair value measurement of loans HFI:
June 30, 2025December 31, 2024
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rate10.1 %12.8 %10.6 %7.2 %21.8 %10.5 %
Annualized net charge-off rate (1)
2.0 %19.8 %6.6 %3.0 %20.2 %6.6 %
Annualized prepayment rate (1)
13.4 %27.2 %19.8 %15.6 %21.4 %19.3 %
(1)    The weighted-average rate is calculated using the original principal balance of each loan pool.
The following significant unobservable input, which includes credit spreads, was used in the fair value measurement of senior asset-backed securities related to Structured Program transactions:
June 30, 2025December 31, 2024
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rate5.7 %6.0 %5.8 %6.0 %6.0 %6.0 %
The following significant unobservable inputs were used in the fair value measurement of other asset-backed securities related to Structured Program transactions:
June 30, 2025December 31, 2024
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rate6.8 %10.4 %7.7 %7.1 %11.0 %7.9 %
Annualized net charge-off rate (1)
4.2 %5.4 %4.8 %3.4 %7.4 %5.0 %
Annualized prepayment rate (1)
22.8 %24.8 %24.2 %18.7 %20.9 %20.5 %
(1)    The weighted-average rate is calculated using the original principal balance of each security.
The following significant unobservable inputs were used in the fair value measurement for servicing assets related to loans sold to investors:
June 30, 2025December 31, 2024
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rate8.7 %17.3 %10.7 %8.7 %17.3 %10.8 %
Annualized net charge-off rate (1)
1.5 %20.1 %6.7 %1.8 %21.2 %8.2 %
Annualized prepayment rate (1)
16.9 %32.8 %21.7 %14.8 %27.5 %20.0 %
Market servicing rate (2)
0.62 %0.62 %0.62 %0.62 %0.62 %0.62 %
(1)    The weighted-average rate is calculated using the original principal balance of each loan pool.
(2)    The fees a willing market participant would require for the servicing of loans with similar characteristics as those in the Company’s serviced portfolio.
Schedule of Sensitivity of Loans HFS and Loans HFI at Fair Value to Adverse Changes in Key Assumptions
The sensitivity of loans HFS at fair value to adverse changes in key assumptions was as follows:
June 30, 2025December 31, 2024
Loans held for sale at fair value
$1,008,168 $636,352 
Expected remaining weighted-average life (in years)
1.31.4
Discount rate:
100 basis point increase$(11,709)$(7,663)
200 basis point increase$(23,189)$(15,174)
Annualized net charge-off rate:
10% increase$(9,276)$(6,436)
20% increase$(18,585)$(12,937)
Annualized prepayment rate:
10% increase$(2,231)$(1,274)
20% increase$(4,058)$(2,444)
The sensitivity of loans HFI at fair value to adverse changes in key assumptions was as follows:
June 30, 2025December 31, 2024
Loans held for investment at fair value$631,736 $1,027,798 
Expected remaining weighted-average life (in years)
0.80.9
Discount rate:
100 basis point increase$(4,137)$(7,832)
200 basis point increase$(8,224)$(15,557)
Annualized net charge-off rate:
10% increase$(6,350)$(11,821)
20% increase$(14,268)$(25,428)
Annualized prepayment rate:
10% increase$(2,700)$(4,813)
20% increase$(4,030)$(9,854)
Schedule of Loans HFS, Loans HFI, Senior Asset-Backed Securities, Other Asset-Backed Securities and Servicing Assets at Fair Value Activity
The following table presents loans HFS at fair value activity:
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Fair value at beginning of period$703,378 $550,415 $636,352 $407,773 
Originations and purchases1,654,313 1,397,930 2,918,045 2,680,180 
Sales(1,217,166)(1,042,166)(2,314,095)(2,101,814)
Principal payments(101,107)(63,605)(169,662)(97,877)
Realized charge-offs, net of recoveries, recorded in earnings
(4,663)(4,205)(11,367)(8,436)
Fair value adjustments recorded in earnings(26,587)(47,310)(51,105)(88,767)
Fair value at end of period$1,008,168 $791,059 $1,008,168 $791,059 
The following table presents loans HFI at fair value activity:
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Fair value at beginning of period$818,882 $420,393 $1,027,798 $262,190 
Purchases— 12,220 12,744 232,784 
Principal payments(184,327)(96,004)(402,787)(159,930)
Interest income accretion and fair value adjustments recorded in earnings
(2,819)(1,967)(6,019)(402)
Fair value at end of period$631,736 $334,642 $631,736 $334,642 
The following table presents senior asset-backed securities related to Structured Program transactions activity:
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Fair value at beginning of period$2,869,281 $1,765,259 $2,899,824 $1,176,403 
Additions495,771 716,299 819,887 1,413,646 
Cash received(398,286)(171,793)(749,951)(278,267)
Change in unrealized gain (loss)
(4,291)2,349 (7,285)332 
Fair value at end of period$2,962,475 $2,312,114 $2,962,475 $2,312,114 
The following table presents other asset-backed securities related to Structured Program transactions activity:
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Fair value at beginning of period$172,544 $103,866 $169,948 $73,393 
Additions35,738 43,887 60,624 86,625 
Cash received(24,622)(12,735)(45,925)(22,066)
Credit loss expense (benefit) for securities available for sale
819 809 (502)(2,083)
Change in unrealized gain (loss)
(447)(282)(113)(324)
Fair value at end of period$184,032 $135,545 $184,032 $135,545 
The following table presents servicing assets activity:
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Fair value at beginning of period$56,904 $71,830 $60,697 $77,680 
Issuances (1)
14,670 13,759 27,935 27,337 
Change in fair value, included in Marketplace revenue(13,665)(15,868)(30,723)(35,296)
Other net changes— (12)— (12)
Fair value at end of period$57,909 $69,709 $57,909 $69,709 
(1)    Represents the servicing assets recorded when the loans are sold. Included in “Gain on sales of loans” within “Marketplace revenue” on the Income Statement.
Schedule of Aggregate Fair Value of HFS Loans and HFI Loans
The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable:
June 30, 2025December 31, 2024
Unsecured personal$3,314,978 $3,106,472 
Residential mortgages166,568 172,711 
Secured consumer242,517 230,232 
Total consumer loans held for investment3,724,063 3,509,415 
Equipment finance (1)
49,891 64,232 
Commercial real estate449,604 373,785 
Commercial and industrial162,763 178,386 
Total commercial loans and leases held for investment662,258 616,403 
Total loans and leases held for investment4,386,321 4,125,818 
Allowance for loan and lease losses(252,989)(236,734)
Loans and leases held for investment, net
$4,133,332 $3,889,084 
(1)    Comprised of sales-type leases for equipment. See “Note 17. Leases” for additional information.

The following table presents the components of the allowance for loan and lease losses (ALLL):
June 30, 2025December 31, 2024
Gross allowance for loan and lease losses (1)
$293,707 $285,686 
Recovery asset value (2)
(40,718)(48,952)
Allowance for loan and lease losses$252,989 $236,734 
(1)    Represents the allowance for future estimated net charge-offs on existing portfolio balances.
(2)    Represents the negative allowance for expected recoveries of amounts previously charged-off.

June 30, 2025ConsumerCommercialTotal
Loans and leases held for investment$3,724,063 $662,258 $4,386,321 
Allowance for loan and lease losses$237,433 $15,556 $252,989 
Allowance ratio (1)
6.4 %2.3 %5.8 %
Gross allowance for loan and lease losses$278,151 $15,556 $293,707 
Gross allowance ratio (1)
7.5 %2.3 %6.7 %
December 31, 2024ConsumerCommercialTotal
Loans and leases held for investment
$3,509,415 $616,403 $4,125,818 
Allowance for loan and lease losses
$212,598 $24,136 $236,734 
Allowance ratio (1)
6.1 %3.9 %5.7 %
Gross allowance for loan and lease losses
$261,550 $24,136 $285,686 
Gross allowance ratio (1)
7.5 %3.9 %6.9 %
(1)    Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost.
The following table summarizes the aggregate fair value of the Company’s HFS loans, as well as the amount that was 90 days or more past due:
June 30, 2025December 31, 2024
Total90 or more
days past due		Total90 or more
days past due
Aggregate unpaid principal balance$1,034,287 $1,758 $657,984 $3,719 
Cumulative fair value adjustments(26,119)(1,426)(21,632)(3,012)
Fair value of loans held for sale
$1,008,168 $332 $636,352 $707 
The following table summarizes the aggregate fair value of the Company’s HFI loans held at fair value, as well as the amount that was 90 days or more past due:
June 30, 2025December 31, 2024
Total90 or more
days past due		Total90 or more
days past due
Aggregate unpaid principal balance$667,444 $8,411 $1,097,511 $14,616 
Cumulative fair value adjustments(35,708)(6,821)(69,713)(11,836)
Fair value of loans held for investment$631,736 $1,590 $1,027,798 $2,780 
Schedule of Sensitivity in the Fair Value of Senior Asset-Backed Securities and Other Asset-Backed Securities to Adverse Changes in Key Assumptions
The sensitivity in the fair value of senior asset-backed securities related to Structured Program transactions to adverse changes in key assumptions was as follows:
June 30, 2025December 31, 2024
Fair value of interests held$2,962,475 $2,899,824 
Expected remaining weighted-average life (in years)
1.11.2
Discount rate:
100 basis point increase$(32,798)$(37,315)
200 basis point increase$(65,597)$(74,630)
The sensitivity in the fair value of other asset-backed securities related to Structured Program transactions to adverse changes in key assumptions was as follows:
June 30, 2025December 31, 2024
Fair value of interests held$184,032 $169,948 
Expected remaining weighted-average life (in years)
1.21.3
Discount rate:
100 basis point increase$(1,924)$(1,909)
200 basis point increase$(3,812)$(3,783)
Annualized net charge-off rate:
10% increase$(1,633)$(1,778)
20% increase$(3,280)$(3,567)
Annualized prepayment rate:
10% increase$(494)$(432)
20% increase$(885)$(835)
Schedule of Sensitivity in the Fair Value of Servicing Assets to Adverse Changes in Key Assumptions
The sensitivity of the fair value of servicing assets to adverse changes in key assumptions was as follows:
June 30, 2025December 31, 2024
Fair value of servicing assets$57,909 $60,697 
Expected remaining weighted-average life (in years)
1.21.2
Discount rate:
100 basis point increase$(546)$(519)
200 basis point increase$(1,092)$(1,038)
Annualized net charge-off rate:
10% increase$(504)$(551)
20% increase$(1,008)$(1,102)
Annualized prepayment rate:
10% increase$(1,612)$(1,359)
20% increase$(3,224)$(2,718)
Schedule of Estimated Fair Value of Servicing Assets The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions:
June 30, 2025December 31, 2024
Weighted-average market servicing rate assumptions
0.62 %0.62 %
Change in fair value from:
Market servicing rate increase by 0.10%
$(6,788)$(6,940)
Market servicing rate decrease by 0.10%
$6,788 $6,940 
Schedule of Financial Instruments Not Recorded at Fair Value
The following tables present the carrying amount and estimated fair values, by level within the fair value hierarchy, of the Company’s assets, and liabilities that are not recorded at fair value on a recurring basis:
June 30, 2025Carrying Amount
Level 1
Level 2
Level 3
Balance at
Fair Value
Assets:
Loans and leases held for investment, net$4,133,332 $— $— $4,342,825 $4,342,825 
Other assets42,299 — 42,077 541 42,618 
Total assets$4,175,631 $— $42,077 $4,343,366 $4,385,443 
Liabilities:
Deposits (1)
$1,898,714 $— $— $1,898,699 $1,898,699 
Other liabilities45,646 — 21,089 24,557 45,646 
Total liabilities$1,944,360 $— $21,089 $1,923,256 $1,944,345 
December 31, 2024Carrying Amount
Level 1
Level 2
Level 3
Balance at
Fair Value
Assets:
Loans and leases held for investment, net$3,889,084 $— $— $4,051,497 $4,051,497 
Other assets40,466 — 40,143 661 40,804 
Total assets$3,929,550 $— $40,143 $4,052,158 $4,092,301 
Liabilities:
Deposits (1)
$2,294,214 $— $— $2,306,373 $2,306,373 
Other liabilities44,801 — 22,833 21,968 44,801 
Total liabilities$2,339,015 $— $22,833 $2,328,341 $2,351,174 
(1)    Excludes deposit liabilities with no defined or contractual maturities.