As of June 30, 2026, approximately $459.3 million of the acquired card receivables balance served as collateral for the Company’s borrowings from the Revolving Credit Facilities (as defined below, see Note 9).

The acquired card receivables balances do not include purchases of participation interests in card receivables from the Company's card issuing partner banks (Issuing Banks) that have not cleared at the end of the reporting period. Purchases of participation interests in card receivables that have not cleared as of June 30, 2026 totaled $78.6 million. The Company recognized an immaterial amount of expected credit losses on the card receivables that have not cleared yet as of each of June 30, 2026 and 2025.

The Company regularly reviews collection experience, delinquencies, and net charge-offs in determining allowance for expected credit losses related to acquired card receivables. Historical collections rates have shown that days past due is the primary indicator of the likelihood of loss. The Company uses the delinquency trends or past due status of the acquired card receivables as the credit quality indicator. Acquired card receivables are considered past due if full payment is not received on the bill date or within a grace period, which is generally limited to five days. Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands):


	June 30,
	2026		2025
Current and less than 30 days past due	$	810,572	$	686,070
30 ~ 59 days past due	5,720		6,173
60 ~ 89 days past due	5,595		5,312
90 ~ 119 days past due	3,613		2,562
Over 119 days past due	49		11
Total	$	825,549	$	700,128


	June 30,
	2026		2025
Balance, beginning	$	15,020	$	20,883
Provision for expected credit losses	54,518		45,326
Charge-off amounts	(68,367)		(59,265)
Recoveries collected	12,571		8,076
Balance, ending	$	13,742	$	15,020

Card receivables acquired from the Issuing Banks were $26.6 billion and $21.7 billion during the years ended June 30, 2026 and 2025, respectively. The provision for expected credit losses related to acquired card receivables increased during the year ended June 30, 2026 compared to the prior year due to portfolio growth and the prior-year release of $5.7 million of the credit loss allowance related to credit loss methodology refinements, partially offset by improvements in delinquency performance. The charged-off amounts related to acquired card receivables increased during the year ended June 30, 2026 compared to the prior year due to portfolio growth, partially offset by improvements in delinquency performance. The decrease in allowance for expected credit losses as of June 30, 2026 compared to June 30, 2025, was primarily due to a decrease in delinquent balances.