v3.26.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2026
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, 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 
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 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.
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.
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 %
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.
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.
Schedule of Sensitivity of Loans HFS and Loans HFI at Fair Value to Adverse Changes in Key Assumptions
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)
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)
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 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 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 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 
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 
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.
Schedule of Aggregate Fair Value of HFS Loans and HFI Loans
The Company’s loan portfolios consist of the following:
June 30, 2026December 31, 2025
Loans held for sale at fair value$1,773,052 $1,762,396 
Loans held for investment at fair value2,085,066 473,314 
Total loans at fair value3,858,118 2,235,710 
Loans and leases held for investment at amortized cost, net2,993,252 3,997,069 
Total loans and leases$6,851,370 $6,232,779 
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, 2026December 31, 2025
Unsecured consumer
$2,207,014 $3,191,430 
Residential mortgages147,460 151,073 
Secured consumer190,778 261,045 
Total consumer loans held for investment at amortized cost
2,545,252 3,603,548 
Equipment finance(1)
33,249 39,757 
Commercial real estate(2)(3)
460,203 472,489 
Commercial and industrial147,441 157,018 
Total commercial loans and leases held for investment at amortized cost
640,893 669,264 
Total loans and leases held for investment at amortized cost(4)
3,186,145 4,272,812 
Allowance for loan and lease losses(192,893)(275,743)
Loans and leases held for investment at amortized cost, net
$2,993,252 $3,997,069 
(1)    Comprised of sales-type leases for equipment. See “Note 16. Leases” for additional information.
(2)    Includes $279.6 million and $286.8 million in loans originated through the Small Business Administration (SBA) as of June 30, 2026 and December 31, 2025, respectively.
(3)    As of both June 30, 2026 and December 31, 2025, the Commercial Real Estate (CRE) office loan balance was under $35 million.
(4)    Accrued interest receivable is excluded from the amortized cost basis of loans and leases HFI and is reported within “Other assets” on the Balance Sheet. Net accrued interest receivable related to loans and leases HFI at amortized cost was $13.4 million and $17.9 million as of June 30, 2026 and December 31, 2025, respectively.
The following table presents the components of the allowance for loan and lease losses (ALLL):
June 30, 2026December 31, 2025
Gross allowance for loan and lease losses(1)
$227,500 $312,667 
Recovery asset value(2)
(34,607)(36,924)
Allowance for loan and lease losses$192,893 $275,743 
(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, 2026ConsumerCommercialTotal
Loans and leases held for investment at amortized cost
$2,545,252 $640,893 $3,186,145 
Allowance for loan and lease losses$176,727 $16,166 $192,893 
Allowance ratio(1)
6.9 %2.5 %6.1 %
Gross allowance for loan and lease losses$211,334 $16,166 $227,500 
Gross allowance ratio(1)
8.3 %2.5 %7.1 %
December 31, 2025ConsumerCommercialTotal
Loans and leases held for investment at amortized cost
$3,603,548 $669,264 $4,272,812 
Allowance for loan and lease losses
$258,811 $16,932 $275,743 
Allowance ratio(1)
7.2 %2.5 %6.5 %
Gross allowance for loan and lease losses
$295,735 $16,932 $312,667 
Gross allowance ratio(1)
8.2 %2.5 %7.3 %
(1)    Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases HFI at amortized cost.
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 
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 
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, 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)
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)
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, 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)
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, 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 
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, 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.