Bank Loans and Related Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2026

Composition of Bank Loans and Delinquency Analysis by Loan Segment

The composition of bank loans and delinquency analysis by portfolio segment and class of financing receivable is as follows:


June 30, 2026	Current		30-59 days past due		60-89 days past due		>90 days past due and other nonaccrual loans (3)		Total past due and other nonaccrual loans		Total loans		Allowance for credit losses		Total bank loans — net
Residential real estate:
First Mortgages (1,2)	$	32,655	$	111	$	2	$	14	$	127	$	32,782	$	30	$	32,752
HELOCs (1,2)	420		1		—		2		3		423		1		422
Total residential real estate	33,075		112		2		16		130		33,205		31		33,174
Pledged asset lines	33,396		10		—		10		20		33,416		—		33,416
Other	411		1		—		—		1		412		6		406
Total bank loans	$	66,882	$	123	$	2	$	26	$	151	$	67,033	$	37	$	66,996

December 31, 2025
Residential real estate:
First Mortgages (1,2)	$	30,429	$	13	$	5	$	37	$	55	$	30,484	$	28	$	30,456
HELOCs (1,2)	423		1		—		3		4		427		1		426
Total residential real estate	30,852		14		5		40		59		30,911		29		30,882
Pledged asset lines	26,570		20		10		3		33		26,603		—		26,603
Other	477		—		—		—		—		477		7		470
Total bank loans	$	57,899	$	34	$	15	$	43	$	92	$	57,991	$	36	$	57,955

(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $144 million and $131 million at June 30, 2026 and December 31, 2025, respectively.

(2) At June 30, 2026 and December 31, 2025, 40% and 41%, respectively, of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole.

(3) There were no loans accruing interest that were contractually 90 days or more past due at June 30, 2026 or December 31, 2025. Bank-loan related nonperforming assets consisted of the nonaccrual loans presented here and loan modifications to borrowers experiencing financial difficulty were not material at both June 30, 2026 and December 31, 2025.

Changes in Allowance for Credit Losses on Bank Loans

Changes in the allowance for credit losses on bank loans were as follows:


	First Mortgages		HELOCs		Total residential real estate		Pledged asset lines		Other		Total
Balance at March 31, 2025	$	14	$	1	$	15	$	—	$	6	$	21
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	1		—		1		—		—		1
Balance at June 30, 2025	$	15	$	1	$	16	$	—	$	6	$	22

Balance at March 31, 2026	$	29	$	1	$	30	$	—	$	6	$	36
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	1		—		1		—		—		1
Balance at June 30, 2026	$	30	$	1	$	31	$	—	$	6	$	37

Balance at December 31, 2024	$	14	$	1	$	15	$	—	$	6	$	21
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	1		—		1		—		—		1
Balance at June 30, 2025	$	15	$	1	$	16	$	—	$	6	$	22

Balance at December 31, 2025	$	28	$	1	$	29	$	—	$	7	$	36
Charge-offs	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Provision for credit losses	2		—		2		—		(1)		1
Balance at June 30, 2026	$	30	$	1	$	31	$	—	$	6	$	37

Credit Quality Indicators of First Mortgages and HELOCs

The credit quality indicators of the Company’s First Mortgages and HELOCs are detailed below:


	First Mortgages Amortized Cost Basis by Origination Year
June 30, 2026	2026			2025			2024			2023			2022			pre-2022			Total First Mortgages			Revolving HELOCs amortized cost basis		HELOCs converted to term loans			Total HELOCs
Origination FICO
<620	$	1		$	—		$	1		$	—		$	2		$	2		$	6		$	—	$	—		$	—
620 – 679	30			18			12			3			22			44			129			2		1			3
680 – 739	362			496			242			194			639			1,424			3,357			51		23			74
≥740	4,068			4,945			2,139			1,389			4,370			12,379			29,290			265		81			346
Total	$	4,461		$	5,459		$	2,394		$	1,586		$	5,033		$	13,849		$	32,782		$	318	$	105		$	423
Origination LTV
≤70%	$	3,166		$	3,715		$	1,615		$	1,082		$	3,747		$	11,853		$	25,178		$	304	$	74		$	378
>70% – ≤90%	1,295			1,744			779			504			1,286			1,995			7,603			14		30			44
>90% – ≤100%	—			—			—			—			—			1			1			—		1			1
Total	$	4,461		$	5,459		$	2,394		$	1,586		$	5,033		$	13,849		$	32,782		$	318	$	105		$	423
Refreshed FICO
<620	$	1		$	5		$	3		$	5		$	24		$	42		$	80		$	2	$	4		$	6
620 – 679	32			58			22			25			61			167			365			9		7			16
680 – 739	384			475			216			142			453			1,091			2,761			43		15			58
≥740	4,044			4,921			2,153			1,414			4,495			12,549			29,576			264		79			343
Total	$	4,461		$	5,459		$	2,394		$	1,586		$	5,033		$	13,849		$	32,782		$	318	$	105		$	423
Estimated Refreshed LTV (1)
≤70%	$	3,167		$	3,855		$	1,825		$	1,380		$	4,652		$	13,783		$	28,662		$	316	$	105		$	421
>70% – ≤90%	1,294			1,601			566			201			352			64			4,078			2		—			2
>90% – ≤100%	—			3			3			5			29			2			42			—		—			—

Total	$	4,461		$	5,459		$	2,394		$	1,586		$	5,033		$	13,849		$	32,782		$	318	$	105		$	423
Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—
Percent of Loans on Nonaccrual Status	0.01		%	0.01		%	0.10		%	0.01		%	0.06		%	0.05		%	0.04		%	—		2.12		%	0.47		%

(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.


	First Mortgages Amortized Cost Basis by Origination Year
December 31, 2025	2025			2024			2023			2022			pre-2022			Total First Mortgages			Revolving HELOCs amortized cost basis			HELOCs converted to term loans			Total HELOCs
Origination FICO
<620	$	—		$	1		$	—		$	3		$	2		$	6		$	—		$	—		$	—
620 – 679	23			16			4			23			49			115			—			1			1
680 – 739	526			272			219			667			1,508			3,192			52			24			76
≥740	5,480			2,534			1,573			4,546			13,038			27,171			260			90			350
Total	$	6,029		$	2,823		$	1,796		$	5,239		$	14,597		$	30,484		$	312		$	115		$	427
Origination LTV
≤70%	$	4,105		$	1,925		$	1,216		$	3,891		$	12,473		$	23,610		$	296		$	80		$	376
>70% – ≤90%	1,924			898			580			1,348			2,123			6,873			16			34			50
>90% – ≤100%	—			—			—			—			1			1			—			1			1
Total	$	6,029		$	2,823		$	1,796		$	5,239		$	14,597		$	30,484		$	312		$	115		$	427
Refreshed FICO
<620	$	8		$	4		$	3		$	36		$	55		$	106		$	3		$	3		$	6
620 – 679	59			31			25			61			140			316			5			6			11
680 – 739	570			227			153			483			1,157			2,590			48			20			68
≥740	5,392			2,561			1,615			4,659			13,245			27,472			256			86			342
Total	$	6,029		$	2,823		$	1,796		$	5,239		$	14,597		$	30,484		$	312		$	115		$	427
Estimated Refreshed LTV (1)
≤70%	$	3,877		$	1,989		$	1,450		$	4,696		$	14,483		$	26,495		$	310		$	115		$	425
>70% – ≤90%	2,148			829			342			537			114			3,970			2			—			2
>90% – ≤100%	4			5			4			6			—			19			—			—			—

Total	$	6,029		$	2,823		$	1,796		$	5,239		$	14,597		$	30,484		$	312		$	115		$	427
Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Percent of Loans on Nonaccrual Status	0.01		%	0.01		%	0.11		%	0.10		%	0.20		%	0.12		%	0.16		%	1.80		%	0.70		%

(1) Represents the LTV for the full line of credit (drawn and undrawn) for revolving HELOCs.

Converting to Amortizing Loans

The following table presents when current outstanding HELOCs will convert to amortizing loans:


June 30, 2026	Balance
Converted to an amortizing loan by period end (1)	$	105
Within 1 year	18
> 1 year – 3 years	31
> 3 years – 5 years	63
> 5 years	206
Total	$	423

(1) Includes $2 million and $5 million of HELOCs converted to amortizing loans during the three and six months ended June 30, 2026, respectively.