v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
For a description of the fair value hierarchy and the Company’s fair value methodologies, see “Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies” in the Annual Report. The Company records certain assets and liabilities at fair value as listed in the following tables.
Recurring Fair Value Measurements

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, 2026
Level 1
Level 2
Level 3
Balance at
Fair Value
Assets:
Loans held for sale at fair value$— $— $1,773,052 $1,773,052 
Loans held for investment at fair value
— — 2,085,066 2,085,066 
Securities available for sale:
Senior asset-backed securities related to Structured Program transactions— — 3,394,054 3,394,054 
Other asset-backed securities related to Structured Program transactions— — 257,820 257,820 
U.S. agency residential mortgage-backed securities— 243,375 — 243,375 
U.S. agency securities— 70,282 — 70,282 
Mortgage-backed securities— 53,806 — 53,806 
Municipal securities— 2,678 — 2,678 
Other securities
— 14,359 10,387 24,746 
Total securities available for sale— 384,500 3,662,261 4,046,761 
Servicing assets— — 72,974 72,974 
Other assets— 10,820 — 10,820 
Total assets$— $395,320 $7,593,353 $7,988,673 
Liabilities:
Other liabilities$— $1,845 $— $1,845 
Total liabilities$— $1,845 $— $1,845 
December 31, 2025
Level 1
Level 2
Level 3
Balance at
Fair Value
Assets:
Loans held for sale at fair value$— $— $1,762,396 $1,762,396 
Loans held for investment at fair value
— — 473,314 473,314 
Securities available for sale:
Senior asset-backed securities related to Structured Program transactions— — 3,092,410 3,092,410 
U.S. agency residential mortgage-backed securities— 236,061 — 236,061 
Other asset-backed securities related to Structured Program transactions
— — 219,370 219,370 
U.S. agency securities— 73,862 — 73,862 
Mortgage-backed securities
— 55,597 — 55,597 
Municipal securities— 2,606 — 2,606 
Other securities
— 16,720 10,083 26,803 
Total securities available for sale— 384,846 3,321,863 3,706,709 
Servicing assets— — 65,167 65,167 
Other assets— 2,099 — 2,099 
Total assets$— $386,945 $5,622,740 $6,009,685 
Liabilities:
Other liabilities$— $3,918 $1,865 $5,783 
Total liabilities$— $3,918 $1,865 $5,783 

Financial instruments are categorized in the valuation hierarchy based on the significance of observable or unobservable factors in the overall fair value measurement. For the financial instruments listed in the tables above that do not trade in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of these assets and liabilities. The Company primarily uses a discounted cash flow (DCF) model to estimate the fair value of Level 3 instruments based on the present value of estimated future cash flows. This model uses inputs that inherently require judgment and reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. The Company did not transfer any assets or liabilities in or out of Level 3 during the second quarters and first halves of 2026 or 2025.

The following significant unobservable inputs, as applicable, were used in the fair value measurement of the Company’s Level 3 assets:
•Discount rate – The weighted-average rate at which the expected cash flows are discounted to arrive at the net present value of the loan. The discount rate is primarily determined based on the Company’s estimate of market participants’ return expectations.
•Annualized net credit loss rate – The annualized rate of lifetime charge-offs, net of recoveries, expressed as a percentage of the average lifetime principal balance of loan pools with similar risk characteristics.
•Annualized prepayment rate – The annualized rate of lifetime prepayments expressed as a percentage of the average lifetime principal balance of loan pools with similar risk characteristics.

An increase in each of the inputs above, in isolation, would result in a decrease in the fair value measurement.

The sensitivity calculations are hypothetical and should not be considered to be predictive of future performance. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the
change in assumptions to the fair value may not be linear. Changes in one factor may lead to changes in other factors, which could impact the hypothetical results.

Loans Held for Sale at Fair Value

Significant Unobservable Inputs

The following significant unobservable inputs were used in the fair value measurement of HFS loans:
June 30, 2026December 31, 2025
MinimumMaximum
Weighted-
Average(1)
MinimumMaximum
Weighted-
Average(1)
Discount rate6.9 %8.9 %7.5 %6.6 %9.0 %7.1 %
Annualized net credit loss rate
3.4 %12.8 %6.6 %3.3 %16.0 %6.3 %
Annualized prepayment rate
20.3 %27.8 %25.9 %20.5 %26.0 %25.5 %
(1)    The weighted-average rate is calculated using the principal balance of each loan pool with similar risk characteristics.

Fair Value Sensitivity

The sensitivity of HFS loans at fair value to adverse changes in key assumptions was as follows:
June 30, 2026December 31, 2025
Loans held for sale at fair value
$1,773,052 $1,762,396 
Expected remaining weighted-average life (in years)
1.21.4
Discount rate:
100 basis point increase$(19,743)$(21,458)
200 basis point increase$(39,096)$(42,471)
Annualized net credit loss rate:
10% increase$(22,606)$(20,970)
20% increase$(45,403)$(41,766)
Annualized prepayment rate:
10% increase$(7,760)$(5,703)
20% increase$(14,574)$(10,546)
Fair Value Reconciliation

The following table presents the activity for HFS loans at fair value:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Fair value at beginning of period$1,836,121 $703,378 $1,762,396 $636,352 
Originations
2,033,047 1,654,313 3,735,730 2,918,045 
Sales(1,815,442)(1,217,166)(3,199,716)(2,314,095)
Principal payments(214,534)(101,107)(400,955)(169,662)
Realized charge-offs, net of recoveries, recorded in earnings
(18,494)(4,663)(30,560)(11,367)
Fair value adjustments recorded in earnings(1)
(47,646)(26,587)(93,843)(51,105)
Fair value at end of period$1,773,052 $1,008,168 $1,773,052 $1,008,168 
(1)    Includes unrealized fair value adjustments related to HFS loans at fair value held at the end of the periods presented of $3.9 million and $1.0 million for the second quarters of 2026 and 2025, respectively, and $27.2 million and $4.5 million for the first halves of 2026 and 2025, respectively.

The following table summarizes the aggregate fair value of the Company’s HFS loans as of the periods presented, as well as the amount that was 90 days or more past due:
June 30, 2026December 31, 2025
Total90 or more
days past due		Total90 or more
days past due
Aggregate unpaid principal balance$1,833,689 $7,048 $1,795,818 $3,931 
Cumulative fair value adjustments(60,637)(5,751)(33,422)(3,176)
Fair value of loans held for sale
$1,773,052 $1,297 $1,762,396 $755 
Loans Held for Investment at Fair Value

Effective January 1, 2026, the Company elected the fair value option for HFI loans originated on or after that date. As a result, the current period includes all newly originated loans across multiple products, including unsecured consumer loans (personal loans and purchase finance loans), auto loans, and small business loans. In periods prior to this election, the Company’s HFI loan portfolio measured at fair value consisted solely of purchased unsecured personal loans that it had previously originated and sold. Accordingly, the significant unobservable inputs presented in the table below reflect a different loan product mix in the current period compared to the prior period.

Significant Unobservable Inputs

The following significant unobservable inputs were used in the fair value measurement of HFI loans:
June 30, 2026December 31, 2025
MinimumMaximum
Weighted-
Average(1)
MinimumMaximum
Weighted-
Average(1)
Discount rate5.5 %11.2 %7.1 %6.5 %8.5 %7.0 %
Annualized net charge-off rate
0.3 %13.4 %5.0 %4.1 %19.1 %7.4 %
Annualized prepayment rate
18.3 %46.5 %25.4 %19.6 %21.1 %20.0 %
(1)    The weighted-average rate is calculated using the principal balance of each loan pool with similar risk characteristics.

Fair Value Sensitivity

The sensitivity of HFI loans at fair value to adverse changes in key assumptions was as follows:
June 30, 2026December 31, 2025
Loans held for investment at fair value$2,085,066 $473,314 
Expected remaining weighted-average life (in years)
1.60.7
Discount rate:
100 basis point increase$(29,672)$(2,832)
200 basis point increase$(58,442)$(5,633)
Annualized net credit loss rate:
10% increase$(22,396)$(5,738)
20% increase$(42,903)$(13,161)
Annualized prepayment rate:
10% increase$(8,147)$(2,490)
20% increase$(16,582)$(4,979)
Fair Value Reconciliation

The following table presents the activity for HFI loans at fair value:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Fair value at beginning of period$1,237,850 $818,882 $473,314 $1,027,798 
Originations
1,101,924 — 2,049,125 — 
Purchases
58,600 — 86,235 12,744 
Principal payments(255,726)(184,327)(432,382)(402,787)
Realized charge-offs, net of recoveries, recorded in earnings
(6,680)(14,278)(10,281)(41,483)
Fair value adjustments recorded in earnings(1)
(50,902)11,459 (80,945)35,464 
Fair value at end of period$2,085,066 $631,736 $2,085,066 $631,736 
(1)    Represents unrealized fair value adjustments recorded in earnings related to HFI loans at fair value held at the end of the periods presented.

The following table summarizes the aggregate fair value of the Company’s HFI loans at fair value as of the periods presented, as well as the amount that was 90 days or more past due:
June 30, 2026December 31, 2025
Total90 or more
days past due		Total90 or more
days past due
Aggregate unpaid principal balance$2,189,229 $6,292 $495,649 $5,177 
Cumulative fair value adjustments(104,163)(5,171)(22,335)(4,183)
Fair value of loans held for investment$2,085,066 $1,121 $473,314 $994 

Asset-Backed Securities Related to Structured Program Transactions

Senior Asset-Backed Securities Related to Structured Program Transactions

Significant Unobservable Inputs

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, 2026December 31, 2025
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rate5.3 %6.8 %5.6 %5.0 %5.4 %5.2 %
Fair Value Sensitivity

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, 2026December 31, 2025
Fair value of interests held$3,394,054 $3,092,410 
Expected remaining weighted-average life (in years)
1.11.1
Discount rate:
100 basis point increase$(37,308)$(32,467)
200 basis point increase$(74,616)$(64,934)

Fair Value Reconciliation

The following table presents the activity for senior asset-backed securities related to Structured Program transactions:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Fair value at beginning of period$3,246,380 $2,869,281 $3,092,410 $2,899,824 
Additions686,670 495,771 1,313,260 819,887 
Cash received(527,341)(398,286)(988,488)(749,951)
Change in unrealized loss
(11,655)(4,291)(23,128)(7,285)
Fair value at end of period$3,394,054 $2,962,475 $3,394,054 $2,962,475 

Other Asset-Backed Securities Related to Structured Program Transactions

Significant Unobservable Inputs

The following significant unobservable inputs were used in the fair value measurement of other asset-backed securities related to Structured Program transactions:
June 30, 2026December 31, 2025
MinimumMaximum
Weighted-
Average(1)
MinimumMaximum
Weighted-
Average(1)
Discount rate6.9 %8.9 %7.3 %6.6 %8.6 %6.9 %
Annualized net charge-off rate
3.4 %6.5 %5.6 %3.1 %6.2 %5.0 %
Annualized prepayment rate
21.5 %28.0 %26.6 %22.8 %27.4 %25.8 %
(1)    The weighted-average rate is calculated using the principal balance of each security.
Fair Value Sensitivity

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, 2026December 31, 2025
Fair value of interests held$257,820 $219,370 
Expected remaining weighted-average life (in years)
1.11.2
Discount rate:
100 basis point increase$(2,706)$(2,285)
200 basis point increase$(5,361)$(4,529)
Annualized net charge-off rate:
10% increase$(2,793)$(2,077)
20% increase$(5,617)$(4,112)
Annualized prepayment rate:
10% increase$(1,148)$(674)
20% increase$(2,136)$(1,227)

Fair Value Reconciliation

The following table presents the activity for other asset-backed securities related to Structured Program transactions:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Fair value at beginning of period$238,349 $172,544 $219,370 $169,948 
Additions60,030 35,738 112,988 60,624 
Cash received(38,918)(24,622)(71,694)(45,925)
Credit loss (expense) benefit for securities available for sale(165)819 112 (502)
Change in unrealized loss(1,476)(447)(2,956)(113)
Fair value at end of period$257,820 $184,032 $257,820 $184,032 
Servicing Assets

Significant Unobservable Inputs

The following significant unobservable inputs were used in the fair value measurement for servicing assets related to loans sold to investors:
June 30, 2026December 31, 2025
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rate8.9 %16.2 %10.3 %8.9 %16.2 %10.4 %
Annualized net charge-off rate(1)
3.4 %12.8 %6.1 %3.3 %19.5 %6.5 %
Annualized prepayment rate(1)
19.7 %27.7 %26.0 %19.9 %25.9 %24.6 %
Market servicing rate(2)
0.58 %0.58 %0.58 %0.58 %0.58 %0.58 %
(1)    The weighted-average rate is calculated using the principal balance of each loan pool with similar risk characteristics.
(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.

Fair Value Sensitivity

The sensitivity of the fair value of servicing assets to adverse changes in key assumptions was as follows:
June 30, 2026December 31, 2025
Fair value of servicing assets$72,974 $65,167 
Expected remaining weighted-average life (in years)
1.21.2
Discount rate:
100 basis point increase$(648)$(567)
200 basis point increase$(1,296)$(1,134)
Annualized net charge-off rate:
10% increase$(573)$(536)
20% increase$(1,146)$(1,071)
Annualized prepayment rate:
10% increase$(2,212)$(1,892)
20% increase$(4,424)$(3,785)
The Company’s selection of the most representative market servicing rates for servicing assets inherently require judgment. The Company reviews third-party servicing rates for its loans, loans in similar credit sectors, and market servicing benchmarking analyses provided by third-party valuation firms, when available. The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions:
June 30, 2026December 31, 2025
Weighted-average market servicing rate assumptions
0.58 %0.58 %
Change in fair value from:
Market servicing rate increase by 0.10%
$(8,123)$(7,289)
Market servicing rate decrease by 0.10%
$8,123 $7,289 

Fair Value Reconciliation

The following table presents activity for servicing assets:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Fair value at beginning of period$67,078 $56,904 $65,167 $60,697 
Issuances(1)
22,733 14,670 40,218 27,935 
Change in fair value(2)
(16,837)(13,665)(32,411)(30,723)
Fair value at end of period$72,974 $57,909 $72,974 $57,909 
(1)    Represents the servicing assets recorded when the loans are sold. Included in “Gain on sales of loans” on the Income Statement.
(2)    Included in “Net fair value adjustments” on the Income Statement.
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, 2026Carrying Amount
Level 1
Level 2
Level 3
Balance at
Fair Value
Assets:
Loans and leases held for investment at amortized cost, net
$2,993,252 $— $— $3,161,857 $3,161,857 
Other assets46,929 — 46,929 — 46,929 
Total assets$3,040,181 $— $46,929 $3,161,857 $3,208,786 
Liabilities:
Deposits(1)
$2,858,839 $— $— $2,858,081 $2,858,081 
Other liabilities37,119 — 14,496 22,623 37,119 
Total liabilities$2,895,958 $— $14,496 $2,880,704 $2,895,200 
December 31, 2025Carrying Amount
Level 1
Level 2
Level 3
Balance at
Fair Value
Assets:
Loans and leases held for investment at amortized cost, net
$3,997,069 $— $— $4,251,852 $4,251,852 
Other assets47,470 — 47,312 453 47,765 
Total assets$4,044,539 $— $47,312 $4,252,305 $4,299,617 
Liabilities:
Deposits(1)
$2,434,422 $— $— $2,437,209 $2,437,209 
Other liabilities40,931 — 11,926 29,005 40,931 
Total liabilities$2,475,353 $— $11,926 $2,466,214 $2,478,140 
(1)    Excludes deposit liabilities with no defined or contractual maturities.