v3.26.1
Loan Servicing Activities
6 Months Ended
Jun. 30, 2026
Guarantees and Product Warranties [Abstract]  
Loan Servicing Activities Loan Servicing Activities
Changes in the contingent liability for expected credit losses for the three and six months ended June 30, 2026 and 2025 were as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance$48 $33 $46 $29 
Credit loss expense18 11 35 27 
Reductions due to loan purchases(13)(11)(28)(23)
Ending balance$53 $33 $53 $33 

As of June 30, 2026 and December 31, 2025, the non-contingent stand-ready liability was $21 million and $18 million, respectively.

As of June 30, 2026 and December 31, 2025, $73 million and $71 million, respectively, were classified as restricted cash on the Condensed Consolidated Balance Sheets, representing cash held with commercial lending institutions. The restrictions are related to cash held as collateral pursuant to an agreement with the originating third-party bank for the working capital loans serviced by Toast Capital.