Finance Receivables, Credit Quality Information, and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2026

Finance Receivables, Credit Quality Information, and Allowance for Credit Losses

Note 3. Finance Receivables, Credit Quality Information, and Allowance for Credit Losses

Net finance receivables for the periods indicated consisted of the following:


Dollars in thousands	September 30, 2026		December 31, 2025
Large loans	$	1,742,013	$	1,593,171
Small loans		467,912		547,028
Total	$	2,209,925	$	2,140,199

Net finance receivables included net deferred origination fees and costs of $14.5 million and $15.1 million as of September 30, 2026 and December 31, 2025, respectively.

The credit quality of the Company’s finance receivable portfolio is dependent on the Company’s ability to enforce sound underwriting standards, maintain diligent servicing of the portfolio, and respond to changing economic conditions as it manages and grows its portfolio. The allowance for credit losses uses FICO scores and delinquency as key data points in estimating the allowance. The Company uses six FICO band categories to assess FICO scores. The first three FICO band categories include subprime FICO scores below 620. The fourth and fifth FICO band categories include near-prime FICO scores ranging from 620 to 659. The sixth FICO band category includes prime FICO scores of 660 or higher.

Net finance receivables by product, FICO band at origination, and origination year as of September 30, 2026 are as follows:


	Net Finance Receivables by Origination Year
Dollars in thousands	2026		2025		2024		2023		2022		Prior		Total Net Finance Receivables
Large Loans:
FICO Band
1	$	101,868	$	66,407	$	18,935	$	7,430	$	2,405	$	868	$	197,913
2		68,401		39,188		10,288		2,987		801		166		121,831
3		103,201		64,214		17,478		6,156		2,007		194		193,250
4		134,074		85,701		25,042		9,309		3,078		313		257,517
5		142,007		94,337		28,911		10,606		3,715		501		280,077
6		357,244		233,008		68,565		25,082		6,892		634		691,425
Total	$	906,795	$	582,855	$	169,219	$	61,570	$	18,898	$	2,676	$	1,742,013
Small Loans:
FICO Band
1	$	61,372	$	27,251	$	3,326	$	483	$	81	$	27	$	92,540
2		26,795		11,755		1,496		121		12		—		40,179
3		38,056		16,755		1,969		172		24		9		56,985
4		40,229		20,339		2,602		199		17		2		63,388
5		38,629		22,776		3,764		174		17		2		65,362
6		86,292		52,957		9,929		261		16		3		149,458
Total	$	291,373	$	151,833	$	23,086	$	1,410	$	167	$	43	$	467,912
Total Loans:
FICO Band
1	$	163,240	$	93,658	$	22,261	$	7,913	$	2,486	$	895	$	290,453
2		95,196		50,943		11,784		3,108		813		166		162,010
3		141,257		80,969		19,447		6,328		2,031		203		250,235
4		174,303		106,040		27,644		9,508		3,095		315		320,905
5		180,636		117,113		32,675		10,780		3,732		503		345,439
6		443,536		285,965		78,494		25,343		6,908		637		840,883
Total	$	1,198,168	$	734,688	$	192,305	$	62,980	$	19,065	$	2,719	$	2,209,925

Net finance receivables by product, FICO band at origination, and origination year as of December 31, 2025 are as follows:


	Net Finance Receivables by Origination Year
Dollars in thousands	2025		2024		2023		2022		2021		Prior		Total Net Finance Receivables
Large Loans:
FICO Band
1	$	119,724	$	36,692	$	15,225	$	5,034	$	1,453	$	382	$	178,510
2		75,189		21,423		6,854		2,086		383		48		105,983
3		121,142		35,473		13,157		5,398		739		51		175,960
4		160,692		50,359		20,102		8,588		1,130		77		240,948
5		173,379		58,320		22,357		9,995		1,893		90		266,034
6		411,650		133,932		55,991		20,631		3,397		135		625,736
Total	$	1,061,776	$	336,199	$	133,686	$	51,732	$	8,995	$	783	$	1,593,171
Small Loans:
FICO Band
1	$	82,635	$	12,526	$	1,937	$	267	$	56	$	13	$	97,434
2		36,601		6,164		783		62		2		—		43,612
3		53,879		9,494		1,042		97		8		—		64,520
4		62,360		12,597		1,428		76		4		3		76,468
5		63,637		16,817		1,732		91		5		1		82,283
6		136,833		42,405		3,365		98		9		1		182,711
Total	$	435,945	$	100,003	$	10,287	$	691	$	84	$	18	$	547,028
Total Loans:
FICO Band
1	$	202,359	$	49,218	$	17,162	$	5,301	$	1,509	$	395	$	275,944
2		111,790		27,587		7,637		2,148		385		48		149,595
3		175,021		44,967		14,199		5,495		747		51		240,480
4		223,052		62,956		21,530		8,664		1,134		80		317,416
5		237,016		75,137		24,089		10,086		1,898		91		348,317
6		548,483		176,337		59,356		20,729		3,406		136		808,447
Total	$	1,497,721	$	436,202	$	143,973	$	52,423	$	9,079	$	801	$	2,140,199

Credit losses by product and origination year for the periods indicated are as follows:


	Nine Months Ended September 30, 2026
Dollars in thousands	2026		2025		2024		2023		2022		Prior		Total Credit Losses
Large loans	$	3,268	$	73,566	$	32,056	$	11,679	$	4,286	$	934	$	125,789
Small loans		3,554		58,175		16,600		1,896		154		9		80,388
Total	$	6,822	$	131,741	$	48,656	$	13,575	$	4,440	$	943	$	206,177


	Nine Months Ended September 30, 2025
Dollars in thousands	2025		2024		2023		2022		2021		Prior		Total Credit Losses
Large loans	$	2,765	$	50,992	$	32,665	$	11,856	$	2,956	$	493	$	101,727
Small loans		4,191		55,071		14,919		1,491		106		30		75,808
Total	$	6,956	$	106,063	$	47,584	$	13,347	$	3,062	$	523	$	177,535

The contractual delinquency of the net finance receivables portfolio by product and aging for the periods indicated are as follows:


	September 30, 2026
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Current	$	1,491,056		85.6	%	$	369,827		79.0	%	$	1,860,883		84.2	%
1 to 29 days past due		139,371		8.0	%		43,886		9.4	%		183,257		8.3	%
Delinquent accounts:
30 to 59 days		30,231		1.8	%		13,736		3.0	%		43,967		2.0	%
60 to 89 days		25,136		1.4	%		11,801		2.5	%		36,937		1.7	%
90 to 119 days		21,138		1.1	%		10,447		2.2	%		31,585		1.4	%
120 to 149 days		18,464		1.1	%		9,463		2.0	%		27,927		1.3	%
150 to 179 days		16,617		1.0	%		8,752		1.9	%		25,369		1.1	%
Total delinquency	$	111,586		6.4	%	$	54,199		11.6	%	$	165,785		7.5	%
Total net finance receivables	$	1,742,013		100.0	%	$	467,912		100.0	%	$	2,209,925		100.0	%
Net finance receivables in nonaccrual status	$	71,030		4.1	%	$	33,515		7.2	%	$	104,545		4.7	%


	December 31, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Current	$	1,372,102		86.1	%	$	437,005		79.9	%	$	1,809,107		84.5	%
1 to 29 days past due		121,113		7.6	%		48,745		8.9	%		169,858		8.0	%
Delinquent accounts:
30 to 59 days		26,940		1.7	%		14,295		2.6	%		41,235		1.9	%
60 to 89 days		23,576		1.5	%		13,582		2.5	%		37,158		1.7	%
90 to 119 days		18,957		1.2	%		11,861		2.2	%		30,818		1.5	%
120 to 149 days		16,715		1.0	%		11,050		2.0	%		27,765		1.3	%
150 to 179 days		13,768		0.9	%		10,490		1.9	%		24,258		1.1	%
Total delinquency	$	99,956		6.3	%	$	61,278		11.2	%	$	161,234		7.5	%
Total net finance receivables	$	1,593,171		100.0	%	$	547,028		100.0	%	$	2,140,199		100.0	%
Net finance receivables in nonaccrual status	$	62,351		3.9	%	$	38,269		7.0	%	$	100,620		4.7	%

The accrual of interest income on finance receivables is suspended when an account becomes 90 days delinquent. If a loan is charged off, the accrued interest is reversed as a reduction of interest and fee income. During the three months ended September 30, 2026 and 2025, the Company reversed $7.3 million and $6.3 million of accrued interest as reductions of interest and fee income, respectively. The Company reversed $23.3 million and $20.7 million of accrued interest as reductions of interest and fee income for the nine months ended September 30, 2026 and 2025, respectively.

The following are changes in the allowance for credit losses by product for the periods indicated:


	As of and For the Three Months Ended September 30, 2026
Dollars in thousands	Large			Small			Total
Beginning balance	$	162,000		$	62,000		$	224,000
Provision for credit losses		45,873			20,290			66,163
Credit losses		(40,576	)		(24,178	)		(64,754	)
Recoveries		3,503			1,888			5,391
Ending balance	$	170,800		$	60,000		$	230,800
Net finance receivables	$	1,742,013		$	467,912		$	2,209,925
Allowance as percentage of net finance receivables		9.8	%		12.8	%		10.4	%


	As of and For the Three Months Ended September 30, 2025
Dollars in thousands	Large			Small			Total
Beginning balance	$	138,110		$	64,690		$	202,800
Provision for credit losses		35,215			25,259			60,474
Credit losses		(31,332	)		(23,966	)		(55,298	)
Recoveries		2,537			1,487			4,024
Ending balance	$	144,530		$	67,470		$	212,000
Net finance receivables	$	1,512,140		$	540,877		$	2,053,017
Allowance as percentage of net finance receivables		9.6	%		12.5	%		10.3	%


	As of and For the Nine Months Ended September 30, 2026
Dollars in thousands	Large			Small			Total
Beginning balance	$	152,300		$	68,600		$	220,900
Provision for credit losses		133,894			66,143			200,037
Credit losses		(125,789	)		(80,388	)		(206,177	)
Recoveries		10,395			5,645			16,040
Ending balance	$	170,800		$	60,000		$	230,800
Net finance receivables	$	1,742,013		$	467,912		$	2,209,925
Allowance as percentage of net finance receivables		9.8	%		12.8	%		10.4	%


	As of and For the Nine Months Ended September 30, 2025
Dollars in thousands	Large			Small			Total
Beginning balance	$	133,506		$	65,994		$	199,500
Provision for credit losses		105,904			73,149			179,053
Credit losses		(101,727	)		(75,808	)		(177,535	)
Recoveries		6,847			4,135			10,982
Ending balance	$	144,530		$	67,470		$	212,000
Net finance receivables	$	1,512,140		$	540,877		$	2,053,017
Allowance as percentage of net finance receivables		9.6	%		12.5	%		10.3	%

The Company uses certain loan modification programs for borrowers experiencing financial difficulties as a loss mitigation strategy to improve collectability of the loans and assist customers through financial setbacks. The programs consist of offering payment deferrals, refinancing, and, in limited instances, settlements. Customers may also pursue financial assistance through external sources, such as filing for bankruptcy protection. Modification programs available to our customers are described in more detail below:

•

Customers with temporary hardships may be offered payment deferrals related to past due payments. Such deferrals extend the customer’s maturity date and are generally considered insignificant delays, unless the deferral exceeds three deferrals in a rolling twelve-month period.

•

Customers with delinquent loans who meet certain criteria are eligible to receive a reduced interest rate and/or term extension, making the monthly payments more affordable.

•

The Company may also agree to settle a past-due loan by accepting less than the full principal balance owed, in certain limited cases, once it is determined that collection of the entire outstanding balance is unlikely.

•

Customers who receive bankruptcy protection may receive principal forgiveness, interest rate reductions, and/or term extensions.

The information relating to modifications made to borrowers experiencing financial difficulty and their related percentage of applicable net finance receivables for the periods indicated are as follows:


	As of and for the Three Months Ended September 30, 2026
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	4,667		0.3	%	$	1,260		0.3	%	$	5,927		0.3	%
Interest rate reduction & term extension		1,088		0.1	%		154		—			1,242		0.1	%
Term extension		378		—			70		—			448		—
Principal forgiveness, interest rate reduction, & term extension		184		—			—		—			184		—
Total	$	6,317		0.4	%	$	1,484		0.3	%	$	7,801		0.4	%


	As of and for the Three Months Ended September 30, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	6,011		0.4	%	$	1,894		0.3	%	$	7,905		0.3	%
Interest rate reduction & term extension		1,421		0.1	%		297		0.1	%		1,718		0.1	%
Term extension		885		0.1	%		175		—			1,060		0.1	%
Principal forgiveness, interest rate reduction, & term extension		147		—			6		—			153		—
Total	$	8,464		0.6	%	$	2,372		0.4	%	$	10,836		0.5	%


	As of and for the Nine Months Ended September 30, 2026
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	14,701		0.9	%	$	4,067		0.9	%	$	18,768		0.9	%
Interest rate reduction & term extension		3,676		0.2	%		688		0.1	%		4,364		0.2	%
Term extension		626		—			143		—			769		—
Principal forgiveness, interest rate reduction, & term extension		419		—			15		—			434		—
Total	$	19,422		1.1	%	$	4,913		1.0	%	$	24,335		1.1	%


	As of and for the Nine Months Ended September 30, 2025
	Large					Small					Total
Dollars in thousands	$		%			$		%			$		%
Interest rate reduction	$	14,350		0.9	%	$	4,490		0.9	%	$	18,840		0.9	%
Interest rate reduction & term extension		5,331		0.4	%		1,076		0.2	%		6,407		0.3	%
Term extension		1,211		0.1	%		240		—			1,451		0.1	%
Principal forgiveness, interest rate reduction, & term extension		518		—			18		—			536		—
Total	$	21,410		1.4	%	$	5,824		1.1	%	$	27,234		1.3	%

The financial effects of the modifications made to borrowers experiencing financial difficulty for the periods indicated are as follows:


	Three Months Ended September 30, 2026
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 18.1%.
Interest rate reduction	Small loans	Reduced the weighted-average contractual interest rate by 29.0%.
Term extension	Large loans	Added a weighted-average 1.2 years to the life of loans.
Term extension	Small loans	Added a weighted-average 1.3 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.3 million.
Principal forgiveness	Small loans	Reduced the amortized cost basis of the loans by $0.1 million.


	Three Months Ended September 30, 2025
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 17.8%.
Interest rate reduction	Small loans	Reduced the weighted-average contractual interest rate by 28.6%.
Term extension	Large loans	Added a weighted-average 1.2 years to the life of loans.
Term extension	Small loans	Added a weighted-average 1.0 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.3 million.
Principal forgiveness	Small loans	Reduced the amortized cost basis of the loans by $0.1 million.


	Nine Months Ended September 30, 2026
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 18.1%.
Interest rate reduction	Small loans	Reduced the weighted-average contractual interest rate by 28.8%.
Term extension	Large loans	Added a weighted-average 1.4 years to the life of loans.
Term extension	Small loans	Added a weighted-average 1.4 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.9 million.
Principal forgiveness	Small loans	Reduced the amortized cost basis of the loans by $0.4 million.


	Nine Months Ended September 30, 2025
Loan Modification	Product	Financial Effect
Interest rate reduction	Large loans	Reduced the weighted-average contractual interest rate by 18.2%.
Interest rate reduction	Small loans	Reduced the weighted-average contractual interest rate by 29.3%.
Term extension	Large loans	Added a weighted-average 1.4 years to the life of loans.
Term extension	Small loans	Added a weighted-average 1.3 years to the life of loans.
Principal forgiveness	Large loans	Reduced the amortized cost basis of the loans by $0.9 million.
Principal forgiveness	Small loans	Reduced the amortized cost basis of the loans by $0.3 million.

The following tables provide the amortized cost basis for modifications made to borrowers experiencing financial difficulty within the previous twelve months that subsequently defaulted. The Company defines payment default as 90 days past due for this disclosure. The respective amounts for each modification for the periods indicated are as follows:


	As of and for the Three Months Ended September 30, 2026
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	4,230	$	1,313	$	5,543
Interest rate reduction & term extension		553		133		686
Term extension		72		5		77
Principal forgiveness, interest rate reduction, & term extension		15		3		18
Total	$	4,870	$	1,454	$	6,324


	As of and for the Three Months Ended September 30, 2025
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	2,828	$	1,185	$	4,013
Interest rate reduction & term extension		859		197		1,056
Term extension		159		22		181
Principal forgiveness, interest rate reduction, & term extension		31		3		34
Total	$	3,877	$	1,407	$	5,284


	As of and for the Nine Months Ended September 30, 2026
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	6,125	$	1,846	$	7,971
Interest rate reduction & term extension		842		169		1,011
Term extension		77		14		91
Principal forgiveness, interest rate reduction, & term extension		30		5		35
Total	$	7,074	$	2,034	$	9,108


	As of and for the Nine Months Ended September 30, 2025
Dollars in thousands	Large		Small		Total
Interest rate reduction	$	3,706	$	1,428	$	5,134
Interest rate reduction & term extension		1,159		235		1,394
Term extension		197		35		232
Principal forgiveness, interest rate reduction, & term extension		55		3		58
Total	$	5,117	$	1,701	$	6,818

The contractual delinquencies of loans that were modified to borrowers experiencing financial difficulty within the previous twelve months for the periods indicated are as follows:


	September 30, 2026
Dollars in thousands	Large		Small		Total
Current	$	16,718	$	3,732	$	20,450
30 - 89 days past due		3,195		940		4,135
90+ days past due		3,378		1,078		4,456
Total (1)	$	23,291	$	5,750	$	29,041

(1) Excludes modified finance receivables that subsequently charged off of $2.9 million and $1.1 million in large and small loans, respectively.


	September 30, 2025
Dollars in thousands	Large		Small		Total
Current	$	18,393	$	4,269	$	22,662
30 - 89 days past due		3,016		917		3,933
90+ days past due		2,692		1,180		3,872
Total (1)	$	24,101	$	6,366	$	30,467

(1) Excludes modified finance receivables that subsequently charged off of $2.3 million and $0.9 million in large and small loans, respectively.