LOANS HELD FOR SALE |
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| 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:
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:
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:
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