Fair Value Measurements

6 Months Ended

Jun. 30, 2026

(9) Fair Value Measurements

ASC 820, "Fair Value Measurements" clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy.

ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The three levels are defined as follows: level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

There were no transfers in or out of level 1, level 2 or level 3 assets and liabilities for the three and six months ended June 30, 2026, and 2025.

The estimated fair values of financial assets and liabilities, excluding assets carried at fair value, on June 30, 2026 and December 31, 2025, were as follows:


	As of June 30, 2026
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	7,501	$	7,501	$	–	$	–	$	7,501
Restricted cash and equivalents	$	172,703	$	172,703	$	–	$	–	$	172,703
Liabilities:
Warehouse lines of credit	$	679,900	$	–	$	–	$	679,900	$	679,900
Accrued interest payable	$	13,452	$	–	$	–	$	13,452	$	13,452
Residual interest financing	$	168,809	$		$	–	$	177,828	$	177,828
Securitization trust debt	$	3,131,105	$	–	$	–	$	3,131,499	$	3,131,499
Subordinated renewable notes	$	28,461	$	–	$	–	$	28,461	$	28,461


	As of December 31, 2025
Financial Instrument	(In thousands)
	Carrying		Fair Value Measurements Using:
	Value		Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	6,322	$	6,322	$	–	$	–	$	6,322
Restricted cash and equivalents	$	165,885	$	165,885	$	–	$	–	$	165,885
Liabilities:
Warehouse lines of credit	$	324,871	$	–	$	–	$	324,871	$	324,871
Accrued interest payable	$	11,994	$	–	$	–	$	11,994	$	11,994
Residual interest financing	$	142,982	$	–	$	–	$	152,607	$	152,607
Securitization trust debt	$	2,986,574	$	–	$	–	$	2,985,961	$	2,985,961
Subordinated renewable notes	$	28,986	$	–	$	–	$	28,986	$	28,986