v3.26.1
Loans
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans
Note 3. Loans
As of March 31, 2026, our loan portfolio consisted of (i) loans held for sale, including personal loans, which are measured at fair value under the fair value option or at lower of amortized cost or fair value, and home loans, which are measured at fair value under the fair value option, (ii) loans held for investment, including student loans, which are measured at fair value under the fair value option, and (iii) loans held for investment, including secured loans, credit cards, and commercial and consumer banking loans, which are measured at amortized cost. Below is a disaggregated presentation of our loans, inclusive of fair market value adjustments and accrued interest income and net of the allowance for credit losses, as applicable:
March 31,
2026		December 31,
2025
Loans held for sale
At fair value
Personal loans$23,682,421 $21,540,668 
Home loans1,648,008 1,205,115 
Total loans held for sale, at fair value25,330,429 22,745,783 
At lower of amortized cost or fair value
Personal loans(1)
124,367 116,966 
Total loans held for sale, at lower of amortized cost or fair value124,367 116,966 
Total loans held for sale25,454,796 22,862,749 
Loans held for investment
Student loans(2)
15,336,820 13,657,578 
Total loans held for investment, at fair value15,336,820 13,657,578 
Secured loans741,266 873,981 
Credit card465,471 467,854 
Commercial and consumer banking:
Commercial real estate157,926 159,265 
Commercial and industrial3,988 4,161 
Residential real estate and other consumer12,523 11,475 
Total commercial and consumer banking174,437 174,901 
Total loans held for investment, at amortized cost(3)
1,381,174 1,516,736 
Total loans held for investment16,717,994 15,174,314 
Total loans$42,172,790 $38,037,063 
_____________________
(1) Includes loans originated as part of the loan platform business on behalf of third party partners.
(2) Includes $4,025,290 and $4,410,038 of student loans covered by financial guarantees, and $62,091 and $65,796 of student loans in consolidated VIEs as of March 31, 2026 and December 31, 2025, respectively.
(3) See Note 4. Allowance for Credit Losses herein, and Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards under the heading “Allowance for Credit Losses” in our Annual Report on Form 10-K for additional information on our loans at amortized cost as it pertains to the allowance for credit losses.
Loans Measured at Fair Value
The following table summarizes the aggregate fair value of our loans for which we elected the fair value option. See Note 11. Fair Value Measurements for the assumptions used in our fair value model.
Personal LoansStudent LoansHome LoansTotal
March 31, 2026
Unpaid principal balance$22,317,947 $14,510,630 $1,562,339 $38,390,916 
Accumulated interest161,450 69,285 6,945 237,680 
Cumulative fair value adjustments1,203,024 756,905 78,724 2,038,653 
Total fair value of loans(1)
$23,682,421 $15,336,820 $1,648,008 $40,667,249 
December 31, 2025
Unpaid principal balance$20,243,217 $12,875,440 $1,133,329 $34,251,986 
Accumulated interest151,079 58,277 4,888 214,244 
Cumulative fair value adjustments1,146,372 723,861 66,898 1,937,131 
Total fair value of loans(1)
$21,540,668 $13,657,578 $1,205,115 $36,403,361 
__________________
(1) Each component of the fair value of loans is impacted by charge-offs during the period. Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due.
The following table summarizes the aggregate fair value of loans 90 days or more delinquent. As delinquent personal loans and student loans are charged off after 120 days of delinquency, amounts presented below represent the fair value of loans that are 90 to 120 days delinquent.
Personal LoansStudent LoansHome LoansTotal
March 31, 2026
Unpaid principal balance$105,579 $14,659 $962 $121,200 
Accumulated interest5,145 343 45 5,533 
Cumulative fair value adjustments(1)
(86,679)(10,976)(152)(97,807)
Fair value of loans 90 days or more delinquent (2)
$24,045 $4,026 $855 $28,926 
December 31, 2025
Unpaid principal balance$104,486 $18,141 $920 $123,547 
Accumulated interest5,286 384 — 5,670 
Cumulative fair value adjustments(1)
(85,843)(13,512)(377)(99,732)
Fair value of loans 90 days or more delinquent (2)
$23,929 $5,013 $543 $29,485 
__________________
(1) Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within noninterest income—loan origination, sales, securitizations and servicing in the condensed consolidated statements of operations and comprehensive income. As such, the $97.8 million fair value adjustment as of March 31, 2026 has been recorded in noninterest income—loan origination, sales, securitizations and servicing in the respective periods in which 10, 30, 60, and 90 days of delinquency occurred. See our Annual Report on Form 10-K for further discussion of the policies for determining the fair value of our loan portfolios.
(2) The fair value incorporates the expected price to be paid by buyers of these delinquent loans after charge-off occurs, implying that potential recoveries are expected to be in excess of these levels based on consistent demonstrated recoverability after a loan becomes delinquent and gets charged off.
Transfers of Financial Assets
We regularly transfer financial assets and account for such transfers as either sales or secured borrowings depending on the facts and circumstances of the transfer. When a transfer of financial assets qualifies as a sale, in many instances we have continuing involvement as the servicer of those financial assets. As we expect the benefits of servicing to be more than just adequate, we recognize a servicing asset. Further, in the case of securitization-related transfers that qualify as sales, we have additional continuing involvement as an investor, albeit at insignificant levels relative to the expected gains and losses of the securitization. In instances where a transfer is accounted for as a secured borrowing, we perform servicing (but we do not recognize a servicing asset) and typically maintain a significant investment relative to the expected gains and losses of the securitization. In whole loan sales, we do not have a residual financial interest in the loans, nor do we have any other power over the loans that would constrain us from recognizing a sale. Additionally, we generally have no repurchase requirements related to transfers of personal loans, student loans and non-GSE home loans other than standard origination representations and warranties, for which we record a liability based on expected repurchase obligations. For GSE home loans, we have customary GSE repurchase requirements, which do not constrain sale treatment but result in a liability for the expected repurchase requirement.
There were no loan securitization transfers, other than those related to our Loan Platform Business, that qualified for sale accounting treatment during the three months ended March 31, 2026 and 2025.
Deconsolidation of debt reflects the impacts of previously consolidated VIEs that became deconsolidated during the period because we no longer hold a significant financial interest in the underlying securitization entity, which can fluctuate from period to period. Gains and losses on deconsolidations are presented within noninterest income—loan origination, sales, securitizations, and servicing in the condensed consolidated statements of operations and comprehensive income.
During the three months ended March 31, 2026 we did not have any deconsolidation of debt on personal loans. During the three months ended March 31, 2025 we had deconsolidation of debt on student loans of $13.2 million which the impact on earnings from this deconsolidation was immaterial.
The following table summarizes our current whole loan sales:
Three Months Ended March 31,
20262025
Personal loans



Fair value of consideration received:
Cash$— $1,113,022 
Servicing assets recognized— 68,625 
Repurchase liabilities recognized— (1,280)
Total consideration— 1,180,367 
Aggregate unpaid principal balance and accrued interest of loans sold— 

1,113,172 
Realized gain$— $67,195 
Home loans



Fair value of consideration received:
Cash$773,099 $326,640 
Servicing assets recognized7,377 2,794 
Repurchase liabilities recognized(1,066)(609)
Total consideration779,410 

328,825 
Aggregate unpaid principal balance and accrued interest of loans sold764,515 

322,532 
Realized gain$14,895 $6,293 
The following table summarizes our delinquent whole loan sales:
Three Months Ended March 31,
20262025
Personal loans

Fair value of consideration received:
Cash$7,114 $7,200 
Servicing assets recognized6,254 6,306 
Repurchase liabilities recognized(116)(81)
Total consideration13,252 13,425 
Aggregate unpaid principal balance and accrued interest of loans sold(1)(2)
93,530 94,833 
Realized loss$(80,278)$(81,408)
__________________
(1) During the three months ended March 31, 2026, includes $88.9 million of aggregate unpaid principal balance sold, related to late-stage delinquent loans for which we retained servicing and portions of recoveries. During the three months ended March 31, 2025, includes $90.0 million of aggregate unpaid principal balance sold related to late-stage delinquent loans for which we retained servicing and portions of recoveries.
(2) For the three months ended March 31, 2026 $57.9 million of unpaid principal balance was recorded in prior periods as a reduction in fair value in noninterest income—loan origination, sales, securitizations and servicing in the condensed consolidated statements of operations and comprehensive income. For the three months ended March 31, 2025 $63.3 million of unpaid principal balance was recorded in prior periods as a reduction in fair value in noninterest income—loan origination, sales, securitizations and servicing in the condensed consolidated statements of operations and comprehensive income. These loans were sold prior to charge-off during the respective periods and otherwise would have been charged off as of March 31, 2026 and 2025, respectively, consistent with our policy. In our other charged off whole loan sales, we typically do not retain servicing or recoveries.
The following table summarizes loans originated and subsequently sold as part of our Loan Platform Business, which are loans that we originate on behalf of a third party for which we receive a fee.
Three Months Ended March 31,
20262025
Personal loans

Fair value of consideration received:
Cash$2,907,117 $1,546,585 
Servicing assets recognized20,235 10,926 
Repurchase liabilities recognized(3,383)(1,061)
Total consideration2,923,969 1,556,450 
Aggregate carrying amount and accrued interest of loans sold(1)
2,810,414 1,488,352 
Loan fees, net(2)
93,320 57,172 
Servicing assets recognized20,235 10,926 
Loan platform fees recognized(3)
$113,555 $68,098 
_____________________
(1)Includes unpaid principal balance of $2.9 billion for the three months ended March 31, 2026 and $1.5 billion for the three months ended March 31, 2025.
(2)Represents loan platform fees earned less the repurchase liabilities recognized at the time of sale.
(3)Recorded in noninterest income—loan platform fees in the condensed consolidated statements of operations and comprehensive income.
The following table summarizes the results of the transfer related to the portion of personal loans that we contributed as part of a securitization that qualified for sale accounting treatment, which related to incremental loans originated and subsequently sold as part of our Loan Platform Business.
Three Months Ended March 31,
20262025
Personal loans

Fair value of consideration received:
Cash(1)
$(475)$(453)
Securitization investments retained(2)
81,711 39,134 
Servicing assets recognized582 280 
Repurchase liabilities recognized(97)(27)
Total consideration81,721 38,934 
Aggregate carrying amount and accrued interest of loans sold(3)
79,552 37,597 
Gain from loan sales(4)
$2,169 $1,337 
_____________________
(1)Relates to payments for securitization-related expenses.
(2)Represents asset-backed bonds and residual investments retained pursuant to risk retention rules. See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 11. Fair Value Measurements for our accounting policy and key inputs used in the fair value measurements related to these asset-backed bonds and residual investments.
(3)Includes unpaid principal balance of $80.9 million for the three months ended March 31, 2026 and $38.3 million for the three months ended March 31, 2025.
(4)Recorded in noninterest income—loan platform fees in the condensed consolidated statements of operations and comprehensive income.
For certain transferred loans that qualified for sale accounting and are therefore derecognized, we have continuing involvement through our servicing agreements. For such loans, our exposure to loss is generally limited to the extent we would be required to repurchase such a loan due to a breach of representations and warranties associated with the loan transfer or servicing contract.
The following table presents information about the unpaid principal balances of loans originated by us and subsequently transferred, but with which we have continuing involvement:
Personal LoansStudent LoansHome LoansTotal
March 31, 2026
Loans in delinquency (30+ days past due)$243,933 $24,981 $53,035 $321,949 
Total loans in delinquency436,272 44,935 53,035 534,242 
Total transferred loans serviced(1)
14,216,887 2,405,276 7,355,752 23,977,915 
December 31, 2025
Loans in delinquency (30+ days past due)$235,479 $30,523 $49,819 $315,821 
Total loans in delinquency396,827 57,225 49,819 503,871 
Total transferred loans serviced(1)
13,215,980 2,653,191 7,037,366 22,906,537 
_____________________
(1)Total transferred loans serviced includes loans in delinquency, as well as loans in repayment, loans in-school/grace period/deferment (related to student loans), and loans in forbearance. The vast majority of total transferred loans serviced represent loans in repayment as of the dates indicated.
The following table presents additional information about the servicing cash flows received and net charge-offs related to loans originated by us and subsequently transferred, but with which we have a continuing involvement:
Three Months Ended March 31,
20262025
Personal loans
Servicing fees collected from transferred loans$35,702 $20,168 
Charge-offs, net of recoveries, of transferred loans229,724 128,921 
Student loans
Servicing fees collected from transferred loans3,147 5,145 
Charge-offs, net of recoveries, of transferred loans10,809 11,273 
Home loans
Servicing fees collected from transferred loans5,006 4,380 
Total
Servicing fees collected from transferred loans$43,855 $29,693 
Charge-offs, net of recoveries, of transferred loans240,533 140,194 
Loans Measured at Amortized Cost
Loan Portfolio Composition and Aging
The following table presents the amortized cost basis of our credit card and commercial and consumer banking portfolios (excluding accrued interest, deferred origination costs and before the allowance for credit losses) by either current status or delinquency status:
Delinquent Loans
Current30–59 Days60–89 Days
≥ 90 Days(1)
Total Delinquent Loans
Total Loans(2)
March 31, 2026
Secured loans
$740,033 $— $— $— $— $740,033 
Credit card480,743 5,079 4,504 10,780 20,363 501,106 
Commercial and consumer banking:
Commercial real estate158,280 564 203 — 767 159,047 
Commercial and industrial3,957 32 — 71 103 4,060 
Residential real estate and other consumer(3)
12,519 — — — — 12,519 
Total commercial and consumer banking174,756 596 203 71 870 175,626 
Total loans
$1,395,532 $5,675 $4,707 $10,851 $21,233 $1,416,765 
December 31, 2025
Secured loans
$872,253 $— $— $— $— $872,253 
Credit card483,803 4,650 3,713 9,161 17,524 501,327 
Commercial and consumer banking:
Commercial real estate159,854 — 373 — 373 160,227 
Commercial and industrial4,048 57 — 73 130 4,178 
Residential real estate and other consumer(3)
11,536 — — — — 11,536 
Total commercial and consumer banking175,438 57 373 73 503 175,941 
Total loans
$1,531,494 $4,707 $4,086 $9,234 $18,027 $1,549,521 
______________
(1)Generally, all of the credit cards ≥ 90 days past due continued to accrue interest. As of the dates indicated, credit card, commercial and consumer banking loans on nonaccrual status were immaterial.
(2)For credit card, the balance is presented before allowance for credit losses of $50,064 and $49,205 as of March 31, 2026 and December 31, 2025, respectively, and accrued interest of $8,472 and $7,045 and deferred origination costs of $5,957 and $8,687 as of March 31, 2026 and December 31, 2025, respectively. For secured loans, the balance is presented before accrued interest of $1,233 and $1,728 as of March 31, 2026 and December 31, 2025, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,870 and $1,729 as of March 31, 2026 and December 31, 2025, respectively, and accrued interest of $681 and $689, respectively.
(3)Includes residential real estate loans originated by Golden Pacific for which we did not elect the fair value option.
Credit Quality Indicators
Credit Card
The following table presents the amortized cost basis of our credit card portfolio (excluding accrued interest and before the allowance for credit losses) based on FICO scores, which are obtained at origination of the account and are refreshed monthly thereafter. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data.
FICOMarch 31, 2026December 31, 2025
≥ 800$45,696 $47,275 
780 – 79925,967 26,942 
760 – 77928,024 29,154 
740 – 75931,292 34,503 
720 – 73941,920 44,021 
700 – 71952,076 56,155 
680 – 69957,892 60,183 
660 – 67956,575 56,007 
640 – 65948,897 45,315 
620 – 63935,559 32,084 
600 – 61921,985 20,397 
≤ 59955,223 49,291 
Total credit card$501,106 $501,327 
Commercial and Consumer Banking
We analyze loans in our commercial and consumer banking portfolio by classification based on their associated credit risk, and perform an analysis on an ongoing basis as new information is obtained. Risk rating classifications are further described below. Loans with a lower expectation of credit losses are classified as Pass, while loans with a higher expectation of credit losses are classified as Substandard.
•Pass — Loans that management believes will fully repay in accordance with the contractual loan terms.
•Watch — Loans that management believes will fully repay in accordance with the contractual loan terms, but for which certain credit attributes have changed from origination and warrant further monitoring.
•Special mention — Loans with a potential weakness or weaknesses that deserves management’s close attention. If left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the loan or our credit position at some future date.
•Substandard — Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the full repayment. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.
The following table presents the amortized cost basis of our commercial and consumer banking portfolio (excluding accrued interest and before the allowance for credit losses) by origination year and credit quality indicator:
Term Loans by Origination Year
March 31, 202620262025202420232022PriorTotal Term LoansRevolving Loans
Commercial real estate
Pass$1,125 $35,317 $32,120 $18,702 $23,635 $26,791 $137,690 $158 
Watch— — 766 — 6,576 1,166 8,508 — 
Special mention— — 2,436 2,917 — 341 5,694 — 
Substandard— — — 2,209 2,606 2,182 6,997 — 
Total commercial real estate1,125 35,317 35,322 23,828 32,817 30,480 158,889 158 
Commercial and industrial
Pass— — 113 36 — 2,650 2,799 1,145 
Watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — — 116 116 — 
Total commercial and industrial— — 113 36 — 2,766 2,915 1,145 
Residential real estate and other consumer
Pass— 263 — — — 4,521 4,784 7,735 
Watch— — — — — — — — 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Total residential real estate and other consumer— 263 — — — 4,521 4,784 7,735 
Total commercial and consumer banking $1,125 $35,580 $35,435 $23,864 $32,817 $37,767 $166,588 $9,038 

Secured Loans
The amortized cost basis (excluding accrued interest) of our secured loans were $740.0 million and $872.3 million as of March 31, 2026 and December 31, 2025, respectively. Secured loans are term loan arrangements secured by underlying loans owned by the debtor, which were previously originated, sold and in most cases continue to be serviced by the Company. The borrowers of our secured loans are generally financial institutions, and the underlying collateral are personal loans originated by the Company. The duration of these secured loans align with the underlying collateral, the majority of which have a term of 7 years or less. Our secured loans were originated in 2023, 2024, and 2025, are all current and there have been no charge-offs since origination.
We evaluate the credit quality of our secured loan portfolio relative to the fair value of the underlying collateral, reassessing it quarterly based on relevant information, including funded loan rates and historical loss experience. An allowance for credit losses is required when there is an expected credit loss after considering the fair value of the collateral as well as any anticipated future changes in the underlying collateral. As of March 31, 2026 and December 31, 2025, based on this evaluation we did not recognize an allowance for credit losses on our secured loans.