LOANS HELD FOR SALE |
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| LOANS HELD FOR SALE | 3. LOANS HELD FOR SALE In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage loans originated for sale are primarily originated and sold into the secondary market through the Bank’s Traditional Banking segment, while consumer loans originated for sale are originated and sold through the RCS segment. Mortgage Loans Held for Sale, at Fair Value See additional detail regarding mortgage loans originated for sale, at fair value under Footnote 10 “Mortgage Banking Activities” of this section of the filing. Consumer Loans Held for Sale, at Fair Value The Bank offers RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. Balances originated under this RCS installment loan program are carried as HFS on the Bank’s balance sheet, with the intent to sell generally within 16 days following the Bank’s origination of the loans. Loans originated under the RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. Activity for consumer loans HFS and carried at fair value was as follows:
Consumer Loans Held for Sale, at the Lower of Cost or Fair Value RCS originates for sale 90% or 95% of the balances from its LOC products and 100% for some of its healthcare receivables products. Ordinary gains or losses on the sale of these RCS products are reported as a component of “Program fees.” During March 2025, Management reached an agreement to sell $5 million of consumer credit cards, and as a result, these balances were transferred from held for investment to HFS as of March 31, 2025. The sale of these credit cards was completed during the second quarter of 2025. Activity for consumer loans HFS and carried at the lower of cost or market value was as follows:
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