v3.26.1
LOANS HELD FOR SALE
6 Months Ended
Jun. 30, 2026
LOANS HELD FOR SALE  
LOANS HELD FOR SALE

3.LOANS HELD FOR SALE

In the ordinary course of business, the Bank originates mortgage and consumer loans for sale. Mortgage loans are primarily originated and sold into the secondary market through the Traditional Banking segment, while consumer loans are originated and sold through the RCS segment.

Mortgage Loans Held for Sale, at Fair Value

Additional information regarding mortgage loans HFS and carried at fair value is included in the “Mortgage Banking Activities” footnote within this section of the report.

Consumer Loans Held for Sale, at Fair Value

Through RCS, the Bank originates installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. Loans originated under this program are classified as HFS and are generally sold within 16 days of origination to a third-party affiliated with the Bank’s service provider. These loans are carried at fair value pursuant to the fair value option and are remeasured to fair value on a monthly basis. The following table presents activity in consumer loans HFS carried at fair value:

  ​ ​ ​

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2026

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

Balance, beginning of period

$

9,430

$

8,602

$

10,968

$

5,443

Origination of consumer loans held for sale

 

54,234

 

48,465

 

99,782

 

82,812

Proceeds from the sale of consumer loans held for sale

 

(52,828)

 

(49,880)

 

(101,236)

 

(81,900)

Net gain on sale of consumer loans held for sale

 

1,570

 

1,125

 

2,892

 

1,957

Balance, end of period

$

12,406

$

8,312

$

12,406

$

8,312

Consumer Loans Held for Sale, at the Lower of Cost or Fair Value

RCS originates for sale 90% or 95% of the balances from its LOC products and 100% for some of its healthcare receivables products. Ordinary gains or losses on the sale of these RCS products are reported as a component of “Program fees.”

During the first quarter of 2025, management entered into an agreement to sell approximately $5 million of consumer credit card loans. Accordingly, the loans were transferred from held for investment to HFS. The sale was completed during the second quarter of 2025. The following table presents activity in consumer loans HFS carried at the lower of cost or fair value:

  ​ ​ ​

Three Months Ended

 

Six Months Ended

  ​ ​ ​

June 30, 

June 30, 

(in thousands)

2026

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

Balance, beginning of period

$

19,399

$

23,523

$

17,027

$

18,632

Origination of consumer loans held for sale

 

325,308

 

272,662

 

570,925

 

504,966

Transferred from held for investment to held for sale

4,977

Proceeds from the sale of consumer loans held for sale

 

(318,426)

 

(279,465)

 

(564,122)

 

(514,078)

Net gain on sale of consumer loans held for sale

 

2,744

 

2,920

 

5,195

 

5,143

Balance, end of period

$

29,025

$

19,640

$

29,025

$

19,640

Other Loans Held for Sale, at the Lower of Cost or Fair Value

During the fourth quarter of 2025, approximately $82 million of loans and leases were transferred from held for investment to HFS, as the Bank entered into an Asset Purchase Agreement to sell its St. Louis-based RBF operations during December 2025. The following table presents activity in other loans HFS carried at the lower of cost or fair value:

  ​ ​ ​

Three Months Ended

 

Six Months Ended

  ​ ​ ​

June 30, 

June 30, 

(in thousands)

2026

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

Balance, beginning of period

$

$

$

81,839

$

Transferred from held for investment to held for sale

Proceeds from the sale of loans held for sale

(87,684)

Net gain on sale of loans held for sale

5,845

Balance, end of period

$

$

$

$