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What changed in OneMain Holdings, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of OneMain Holdings, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+251 added−236 removedSource: 10-K (2025-02-07) vs 10-K (2024-02-13)

Top changes in OneMain Holdings, Inc.'s 2024 10-K

251 paragraphs added · 236 removed · 197 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

54 edited+18 added−19 removed32 unchanged
Biggest changeServicing and collection activity is conducted and documented on systems that log and maintain a permanent record of all transactions and may also be used to assess a customer’s application. The systems permit branch office management to review the individual and collective performance of branch locations for which they are responsible.
Biggest changeAccount servicing and collections for our finance receivables are handled at the branch location, in our central servicing facilities, through our digital platform, or through third-party servicers. Servicing and collection activity is conducted and documented on systems that log and maintain a permanent record of all transactions and may also be used to assess a customer’s future application.
Our regulators are increasingly focused on the adequacy of these policies and practices, including with respect to providing consumers with choices about how we use and share their information, and the processes we take to safeguard their personal information and account access.
Our regulators are increasingly focused on the adequacy of these policies and practices, including with respect to providing consumers with choices about how we use and share their personal information, and the processes we take to safeguard their personal information and account access.
We evaluate internal systems, processes, and controls to mitigate operational risk and control and monitor our businesses through a variety of methods including the following: • our operational policies and procedures that standardize various aspects of lending and collections; • our branch finance receivable systems control loan size, interest rates, maturity dates, and fees of our customers’ accounts; create loan documents specific to the state in which the branch location operates or to the customer’s location if the loan is made electronically through our central operations; and control cash receipts and disbursements; • our accounting personnel reconcile bank accounts, investigate discrepancies, and resolve differences; • our credit risk management system reports allow us to track individual branch location performance and to monitor lending and collection activities; • our cybersecurity incident response plan establishes a team that responds to cybersecurity incidents by identifying, evaluating, investigating, resolving, and remediating incidents impacting our information and information systems; • our executive level reporting is available to headquarters and field operations management to review the status of activity through the close of business of the prior day; 12 Table of Contents • our branch operations management structure, Regional Quality Coordinators, and Compliance Field Examination teams are designed to oversee a large, decentralized organization with succeeding levels of supervision and are staffed with experienced personnel; • our branch and central operations compensation plans are based on credit quality and compliance, and are regularly reviewed for consistency with overall corporate goals and customer service; • our compliance department assesses our compliance with applicable federal and state laws and regulations and our internal policies and procedures; oversees training to ensure team members have an understanding of such laws, regulations, policies, and procedures that impact their job responsibilities; and manages our regulatory examination process; • our Executive Office of Customer Care maintains our consumer complaint resolution and reporting process; and • our internal audit department audits our business for adherence to operational policies and procedures, and compliance with federal and state laws and regulations.
We evaluate internal systems, processes, and controls to mitigate operational risk and control and monitor our businesses through a variety of methods including the following: • our operational policies and procedures that standardize various aspects of lending and collections; • our finance receivable systems control loan size, interest rates, maturity dates, and fees of our customers’ accounts; create loan documents specific to the state in which the branch location operates or to the customer’s location if the loan is made electronically through our central operations; and control cash receipts and disbursements; • our accounting personnel reconcile bank accounts, investigate discrepancies, and resolve differences; • our credit risk management system reports allow us to track individual branch location performance and to monitor lending and collection activities; • our cybersecurity incident response plan establishes a team that responds to cybersecurity incidents by identifying, evaluating, investigating, resolving, and remediating incidents impacting our information and information systems; • our executive level reporting is available to headquarters and field operations management to review the status of activity through the close of business of the prior day; • our branch operations management structure, Regional Quality Coordinators, and Compliance Field Examination teams are designed to oversee a large, decentralized organization with succeeding levels of supervision and are staffed with experienced personnel; • our branch and central operations compensation plans are based on credit quality and compliance, and are regularly reviewed for consistency with overall corporate goals and customer service; • our compliance department assesses our compliance with applicable federal and state laws and regulations and our internal policies and procedures; oversees training to ensure team members have an understanding of such laws, regulations, policies, and procedures that impact their job responsibilities; and manages our regulatory examination process; • our Executive Office of Customer Care maintains our consumer complaint resolution and reporting process; and • our internal audit department audits our business for adherence to operational policies and procedures, and compliance with federal and state laws and regulations.
REGULATION Federal Laws Various federal laws and regulations govern credit origination, servicing, and collections, including: • the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") (which, among other things, created the Consumer Finance Protection Bureau (“CFPB”)); • the Equal Credit Opportunity Act (which, among other things, prohibits discrimination against creditworthy applicants) and Regulation B, which implements this statute; • the Fair Credit Reporting Act (which, among other things, governs the use of credit bureau reports and reporting information to credit bureaus) and Regulation V, which implements this statute; • the Truth in Lending Act (which, among other things, governs disclosure of applicable charges and other terms of consumer credit) and Regulation Z, which implements this statute; • the Fair Debt Collection Practices Act (which, among other things, governs practices in collecting certain debts) and Regulation F, which implements this statute; 13 Table of Contents • the Gramm-Leach-Bliley Act (which, among other things, governs the handling of personal financial information) and Regulation P, which implements this statute; • the Military Lending Act (which, among other things, governs certain consumer lending to active-duty military servicemembers and their spouses and covered dependents, and limits the interest rate and certain fees, charges and premium they may be charged on certain loans); • the Servicemembers Civil Relief Act (which, among other things, can impose limitations on the interest rate and the servicer’s ability to collect on a loan originated with an obligor who is on active-duty status and up to nine months thereafter); • the Real Estate Settlement Procedures Act (which regulates the making and servicing of closed end residential mortgage loans) and Regulation X, which implements this statute; • the Federal Trade Commission’s Consumer Claims and Defenses Rule, also known as the “Holder in Due Course” Rule (which, among other things, allows a consumer to assert, against the assignees of certain credit contracts, certain claims that the consumer may have against the originator of the credit contracts); and • the Federal Trade Commission Act (which, among other things, prohibits unfair and deceptive acts and practices).
REGULATION Federal Laws Various federal laws and regulations govern credit origination, servicing, and collections, including: • the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") (which, among other things, created the Consumer Finance Protection Bureau (“CFPB”)); • the Equal Credit Opportunity Act (which, among other things, prohibits discrimination against creditworthy applicants) and Regulation B, which implements this statute; • the Fair Credit Reporting Act (which, among other things, governs the use of credit bureau reports and reporting information to credit bureaus) and Regulation V, which implements this statute; • the Truth in Lending Act (which, among other things, governs disclosure of applicable charges and other terms of consumer credit) and Regulation Z, which implements this statute; • the Fair Debt Collection Practices Act (which, among other things, governs practices in collecting certain debts) and Regulation F, which implements this statute; • the Gramm-Leach-Bliley Act (which, among other things, governs the handling of personal financial information) and Regulation P, which implements this statute; • the Military Lending Act (which, among other things, governs certain consumer lending to active-duty military servicemembers and their spouses and covered dependents, and limits the interest rate and certain fees, charges and premium they may be charged on certain loans); • the Servicemembers Civil Relief Act (which, among other things, can impose limitations on the interest rate and the servicer’s ability to collect on a loan originated with an obligor who is on active-duty status and up to nine months thereafter); • the Real Estate Settlement Procedures Act (which regulates the making and servicing of closed end residential mortgage loans) and Regulation X, which implements this statute; • the Federal Trade Commission’s Consumer Claims and Defenses Rule, also known as the “Holder in Due Course” Rule (which, among other things, allows a consumer to assert, against the assignees of certain credit contracts, certain claims that the consumer may have against the originator of the credit contracts); and • the Federal Trade Commission Act (which, among other things, prohibits unfair and deceptive acts and practices).
Our goal is to continue to improve the way we serve our customers and extend responsible credit, so customers are able to repay their loans. Credit Risk. Credit quality is driven by our long-standing underwriting philosophy, which considers a prospective customer’s willingness and capacity to repay the personal loan.
Our goal is to continue to improve the way we serve our customers and extend responsible credit, so customers are able to repay their loans. Credit Risk. Credit quality is driven by our long-standing underwriting philosophy, which considers a prospective customer’s willingness and capacity to repay the loan.
Using third party market data as of December 2023 and internally aligning to our current product offerings, we estimate U.S. nonprime consumers collectively have approximately $1.3 trillion of outstanding borrowings in the form of personal loans, auto loans and leases, and credit cards. We believe this large market provides us with an attractive growth opportunity.
Using third party market data as of December 2024 and internally aligning to our current product offerings, we estimate U.S. nonprime consumers collectively have approximately $1.3 trillion of outstanding borrowings in the form of personal loans, auto loans and leases, and credit cards. We believe this large market provides us with an attractive growth opportunity.
INDUSTRY AND MARKET OVERVIEW We operate in the consumer finance industry serving consumers who have limited access to credit from banks, credit card companies, and other lenders.
INDUSTRY AND MARKET OVERVIEW We operate in the consumer finance industry serving consumers who typically have limited access to credit from banks, credit card companies, and other lenders.
Our social debt issuances reinforce our commitment to financial inclusion and providing underrepresented communities with access to safe, affordable credit. They also provide concrete and measurable funding vehicles to advance the Company’s Impact program. Additional information regarding our Social Bonds and Social Bond Framework is available on our Investor Relations website.
Our social debt issuances reinforce our commitment to financial inclusion and providing underrepresented communities with access to safe, affordable credit. They also provide concrete and measurable funding vehicles to advance the Company’s Impact program. Additional information regarding our Social Bonds and Social Bond Framework are available on our Investor Relations website.
Item 1. Business. BUSINESS OVERVIEW This report combines the Annual Reports on Form 10-K for the year ended December 31, 2023 for OneMain Holdings, Inc. (“OMH”), a publicly held financial service holding company, and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”).
Item 1. Business. BUSINESS OVERVIEW This report combines the Annual Reports on Form 10-K for the year ended December 31, 2024 for OneMain Holdings, Inc. (“OMH”), a publicly held financial service holding company, and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”).
The information on, or that is accessible through, our website is not incorporated by reference into this report. The website addresses listed in this Item are provided for the information of the reader and are not intended to be active links. 19 Table of Contents
The information on, or that is accessible through, our website is not incorporated by reference into this report. The website addresses listed in this Item are provided for the information of the reader and are not intended to be active links. 18 Table of Contents
These state laws include, but are not limited to, the California Consumer Privacy Act (as amended by the California Privacy Rights Act of 2020), the Oregon Consumer Privacy Act, and the New York Department of Financial Services (“NYDFS”) Cybersecurity Regulation.
These state laws include, but are not limited to, the California Consumer Privacy Act (as amended by the California Privacy Rights Act of 2020), the Oregon Consumer Privacy Act, the Minnesota Consumer Data Privacy Act, and the New York Department of Financial Services (“NYDFS”) Cybersecurity Regulation.
We require collateral protection insurance, at the customer’s expense, when they fail to maintain required insurance on property pledged as collateral for the finance receivable, that protects the value of that collateral. We provide our customers financial wellness tools, free of charge. Trim by OneMain is a financial wellness platform intended to help improve our customers’ financial well-being.
We require collateral protection insurance, at the customer’s expense, when they fail to maintain required insurance on property pledged as collateral for the finance receivable. We provide our customers financial wellness tools, free of charge. Trim by OneMain is a financial wellness platform intended to help improve our customers’ financial well-being.
A copy of our Human Rights Statement is available on our Investor Relations website. IMPACT Our Impact strategy is guided by three priorities reflecting our commitment to social responsibility: building trust and strong relationships with our stakeholders, providing responsible credit solutions, and contributing to our communities through education, financial wellness, and volunteerism.
A copy of our Human Rights Statement is available on our Investor Relations website. 17 Table of Contents IMPACT Our Impact strategy is guided by three priorities reflecting our commitment to social responsibility: building trust and strong relationships with our stakeholders, providing responsible credit solutions, and contributing to our communities through education, financial wellness, and volunteerism.
We believe a diverse talent pool and inclusive work environment makes us stronger, helps us fulfill our Company’s mission, and connects us with the customers and communities we serve.
We believe a broad talent pool and inclusive work environment makes us stronger, helps us fulfill our Company’s mission, and connects us with the customers and communities we serve.
Our central operational functions support the following: • soliciting business; • processing payments; • originating personal loans; • issuing and servicing optional products; • servicing of certain delinquent personal loans; • managing bankruptcy process for loans in Chapter 7, 11, and 13 proceedings; • managing litigation requests against delinquent borrowers; • tracking collateral protection insurance; • repossessing and re-marketing of titled collateral; • supervising sales and retention of customers; and • managing charge-off recovery operations.
Our central operational functions support the following: • soliciting business; • processing payments; • originating consumer loans; • issuing and servicing optional products; • servicing of delinquent consumer loans; • managing bankruptcy process for loans in Chapter 7, 11, and 13 proceedings; • managing litigation requests with delinquent borrowers; • tracking collateral protection insurance; • repossessing and re-marketing of titled collateral; • supervising sales and retention of customers; and • managing charge-off recovery operations.
The curriculum is designed to drive meaningful social impact in communities by teaching high school students about building credit and managing debt. Through interactive virtual and in-person classroom sessions, Credit Worthy helps students start early on the path to financial wellness. More than half of the schools using the digital curriculum during the academic year were low-to-moderate income.
The curriculum is designed to drive meaningful social impact in communities by teaching high school students about building credit and managing debt. Through interactive classroom sessions, both virtually and in-person, students start early on the path to financial wellness. More than half of the schools using the digital curriculum during the academic year were low-to-moderate income.
As of December 31, 2023, we had approximately 9,100 employees. Our commitment to help our community starts with our own team members. We believe in putting people first with a focus on recruiting, developing, and supporting our team members, and celebrating the communities in which we operate.
As of December 31, 2024, we had approximately 9,000 employees. Our commitment to help our community starts with our own team members. We believe in putting people first with a focus on recruiting, developing, and supporting our team members, and celebrating the communities in which we operate.
OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “OneMain,” “we,” “us,” or “our.” As one of the nation’s leaders in offering nonprime consumers responsible access to credit, we: • provide responsible personal loan products; • offer credit card products; • offer optional products; • offer a customer-focused financial wellness program; • service loans owned by us and third parties; • pursue strategic acquisitions and dispositions of assets and businesses; and • may establish joint ventures or enter into other strategic alliances.
OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “OneMain,” “we,” “us,” or “our.” As one of the nation’s leaders in offering nonprime consumers responsible access to credit, we: • offer responsible personal loan products; • offer secured auto financing at the point of purchase; • offer credit card products; • offer optional products; • offer a customer-focused financial wellness platform (Trim by OneMain); • service loans owned by us and third parties; • pursue strategic acquisitions and dispositions of assets and businesses; and • may establish joint ventures or enter into other strategic alliances.
These senior executives each hold responsibility for different Impact workstreams. The increased oversight by these leaders reflects the Company’s commitment to monitoring Impact matters and risks for potential effects on the Company and the consumer lending industry, as well as potential opportunities that we may gain through proactive identification of Impact issues.
The increased oversight by these leaders reflects the Company’s commitment to monitoring Impact matters and risks for potential effects on the Company and the consumer lending industry, as well as potential opportunities that we may gain through proactive identification of Impact issues.
As part of our commitment to financial wellness, Credit Worthy by OneMain Financial is a $4 million commitment with strategic partner EVERFI, a global social-impact technology provider, to develop and distribute free, digital financial education to high schools nationwide over four academic school years. Since program inception, we have delivered the curriculum to more than 3,400 schools and 275,000 students.
As part of our commitment to financial wellness, Credit Worthy by OneMain Financial is a strategic partnership with EVERFI, a global social-impact technology provider, to develop and distribute free, digital financial education to high schools nationwide over eight years. Since program inception, we have delivered the curriculum to more than 4,100 schools and 440,000 students.
We also contributed to support financial literacy, community and economic development, food insecurity, and disaster relief initiatives. Our Impact Executive Council consists of a diverse group of senior executives, appointed by the Chief Executive Officer (“CEO”), reporting directly to the Nominating and Corporate Governance Committee of the Board on Impact issues.
We also contributed to support financial literacy, community and economic development, food insecurity, and disaster relief initiatives. Our Impact Executive Council consists of a diverse group of senior executives, appointed by the CEO, reporting directly to the Nominating and Corporate Governance Committee of the Board on Impact issues. These senior executives each hold responsibility for different Impact workstreams.
In June 2021, OMFC issued its inaugural Social Bond, with the net proceeds committed to serving credit-disadvantaged communities around the country. Furthermore, at least 75% of the loans funded by the Social Bond are allocated to women or minority borrowers as outlined in OneMain’s Social Bond Framework.
In August 2024, OMFC issued its second-ever Social Bond, with the net proceeds committed to serving credit-disadvantaged communities around the country. Under OneMain’s Social Bond Framework, at least 75% of the loans funded by the Social Bond are allocated to women or minority borrowers.
We use proprietary modeling, along with data purchased from credit bureaus, alternative data providers, and our existing data/experience to acquire and develop new and profitable customer relationships. Our digital platform allows current and prospective customers the ability to apply for and close a personal loan online, at www.onemainfinancial.com . Our digital user experience includes video, chat, and co-browsing with customers.
We use proprietary modeling that utilizes our existing data and experience, along with data purchased from credit bureaus and alternative data providers, to acquire and develop new and profitable customer relationships. Our digital platform allows current and prospective customers the ability to apply for and close a personal loan or credit card online.
The SEC’s website, www.sec.gov , contains these reports and other information that registrants (including OMH and OMFC) file electronically with the SEC. These reports are also available free of charge through our website, www.onemainfinancial.com under “Investor Relations,” as soon as reasonably practicable after we file them with, or furnish them to, the SEC.
These reports are also available free of charge through our website, www.onemainfinancial.com under “Investor Relations,” as soon as reasonably practicable after we file them with, or furnish them to, the SEC.
Currently, the CFPB has supervisory authority over the Company as a mortgage servicer. The Dodd-Frank Act also gives the CFPB supervisory authority over entities that are designated as “larger participants” in certain financial services markets, including the auto financing market and the consumer installment lending market.
The Dodd-Frank Act also gives the CFPB supervisory authority over entities that are designated as “larger participants” in certain financial services markets, including the auto financing market.
We originate and service unsecured and secured personal loans, including auto finance, offer credit cards, and provide optional credit and non-credit insurance and other optional products through our branch and central operations, as well as our digital platform.
We originate and service personal loans and auto finance loans, offer credit cards, and provide optional credit and non-credit insurance and other optional products through our branch and central operations, as well as our digital platform. Consumer loan origination and servicing, credit cards, and insurance products form the core of our operations.
Our underwriting process for our personal loans also includes an assessment of the applicant’s income and expenses to ensure he or she has the capacity to repay the loan.
Our underwriting process for our personal loans includes an assessment of the applicant’s income and expenses to ensure he or she has the capacity to repay the loan. For all secured consumer loans, we obtain a security interest in titled property.
OPERATIONAL CONTROLS We continuously strive to strengthen our system of internal controls to ensure compliance with laws, rules, and regulations, and to improve the oversight of our operations.
We believe these facilities position us for further expansion and growth. 12 Table of Contents OPERATIONAL CONTROLS We continuously strive to strengthen our system of internal controls to ensure compliance with laws, rules, and regulations, and to improve the oversight of our operations.
In December 2021 and October 2023, the Federal Trade Commission published amendments to its Safeguards Rule that prescribe more specific administrative and technical requirements for a financial institution’s cybersecurity program. Various states also have adopted laws, rules, and regulations pertaining to privacy and/or cybersecurity that may be as, or more stringent and expansive than federal requirements.
In December 2021 and October 2023, the Federal Trade Commission published amendments to its Safeguards Rule that prescribe more specific administrative and technical requirements for a financial institution’s cybersecurity program.
Our customers often develop a relationship with their local office representatives, which we believe not only improves the credit performance of our personal loans but also improves customer loyalty and the longer-term relationship. We solicit customers through a variety of channels, including but not limited to direct mail offers, affiliate partners, targeted online advertising, search engines, and e-mail.
Our customers often develop a relationship with their local office representatives, which we believe not only improves the credit performance of our personal loans but also improves customer loyalty and the longer-term relationship.
These tools simplify and optimize the customer experience. We offer borrowers an option to close remotely through our digital platform without coming into a branch location. Our applications, regardless of whether they are completed in person, over the phone, or online, go through our best-in-class underwriting processes, including an ability-to-pay assessment, monthly budgeting, income verification, and central automated credit decisioning.
Our digital user experience includes video, chat, and co-browsing with customers. These tools simplify and optimize the customer experience. 11 Table of Contents Our applications, regardless of whether they are completed in person, over the phone, or online, go through our best-in-class underwriting, including processes such as an ability-to-pay assessment, monthly budgeting, income verification, and central automated credit decisioning.
Finally, we believe that integrity, transparency, and respect are at the heart of our success, and that these ethical values must inform every interaction we have with customers and with each other.
Finally, we believe that integrity, transparency, and respect are at the heart of our success, and that these ethical values must inform every interaction we have with customers and with each other. Culture, Talent, and Development We are dedicated to fostering an inclusive and dynamic environment where team members can thrive both personally and professionally.
AHL is a life and health insurance company licensed in 49 states, the District of Columbia, and Canada to write credit life, credit disability, and non-credit insurance products. Triton is a property and casualty insurance company licensed in 50 states, the District of Columbia, and Canada to write credit involuntary unemployment, credit disability, and collateral protection insurance.
Our insurance business is conducted through our wholly owned insurance subsidiaries, American Health and Life Insurance Company (“AHL”) and Triton Insurance Company (“Triton”). AHL is a life and health insurance company licensed in 49 states, the District of Columbia, and Canada to write credit life, credit disability, and non-credit insurance products.
It is not known if or when the CFPB may consider reactivating the rulemaking process for the larger-participant rule for consumer installment loans. 14 Table of Contents The investigation and enforcement provisions of Title X of the Dodd-Frank Act may adversely affect our business if the CFPB or one or more state attorneys general or state regulators believe that we have violated any federal consumer financial protection laws, including the prohibition in Title X against unfair, deceptive, or abusive acts or practices.
Starting in 2023, the CFPB has exercised supervisory authority over the Company’s entire consumer finance business as a result of the Company’s status as a “larger participant” in the auto financing market. 14 Table of Contents The investigation and enforcement provisions of Title X of the Dodd-Frank Act may adversely affect our business if the CFPB or one or more state attorneys general or state regulators believe that we have violated any federal consumer financial protection laws, including the prohibition in Title X against unfair, deceptive, or abusive acts or practices.
We believe our deep understanding of local markets and customers, together with our proprietary underwriting process, sophisticated data analytics, and decisioning tools allow us to price, manage, and monitor risk effectively through changing economic conditions.
Together with our proprietary underwriting process, sophisticated data analytics and decisioning tools, and proven funding model, we are well positioned to price effectively, manage and monitor risk, and access capital through changing economic conditions.
Our personal loans are non-revolving, with a fixed rate, have fixed terms generally between three to six years, and are secured by automobiles, other titled collateral, or are unsecured. Our loans have no pre-payment penalties. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured.
We offer personal loans through our branch network, central operations, digital affiliates, and our website, www.onemainfinancial.com , to consumers who need timely access to cash. Our personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles, other titled collateral, or are unsecured. Our loans have no pre-payment penalties.
We provide origination, underwriting, and servicing of personal loans. In addition, we offer two credit cards, BrightWay and BrightWay+, through a third-party bank partner from which we purchase the receivable balances. We believe we are well positioned for future growth with an experienced management team, proven access to the capital markets, and strong demand for consumer credit.
We provide origination, underwriting, and servicing of consumer loans, consisting of personal loans and auto finance. In addition, we offer two credit cards, BrightWay and BrightWay+, through a third-party bank partner from which we purchase the receivable balances.
If we believe the borrower’s financial difficulties are not temporary, the account is evaluated for other methods of borrower assistance, such as modification of loan terms. A re-age may also be offered to assist delinquent customers who have experienced financial difficulties but have demonstrated both an ability and a willingness to repay their loan.
A re-age may also be offered to assist delinquent customers who have experienced financial difficulties but have demonstrated both an ability and a willingness to repay their loan. After the re-age, the customer’s account status is brought current. Account Servicing.
Our compensation and benefits package includes competitive pay, healthcare, retirement benefits, as well as paid time off and holidays, parental leave, disability benefits, military leave, and paid development and volunteer time off, along with other benefits and employee resources. 17 Table of Contents Human Rights OneMain recognizes our responsibility to help protect and promote human rights, and we strive to meet our responsibility to respect human rights with our team members, customers, and the communities we serve.
Our compensation and benefits package includes competitive pay, healthcare, retirement benefits, as well as paid time off and holidays, parental leave, disability benefits, military leave, and paid development and volunteer time off, along with other benefits and employee resources.
COMPETITION We operate in the consumer lending industry with a focus on serving the nonprime customer through our national branch network, central operations, affiliate partners, online, and over the phone.
COMPETITION We operate in the consumer lending industry with a focus on serving nonprime consumers through our national branch network, central operations, affiliate partners, network of auto dealerships, online, and over the phone. There are numerous local, regional, and national competitors that serve non-prime consumers, both within our geographic network and through digital channels, offering similar products and services.
We obtain a security interest in titled property for our secured personal loans. 11 Table of Contents Our customers are primarily considered nonprime and therefore a higher credit risk, who often require significantly higher levels of servicing than prime customers. As a result, we generally charge these customers higher interest rates.
Our customers are primarily considered nonprime and therefore a higher credit risk, who often require significantly higher levels of servicing than prime customers. As a result, we generally charge these customers higher interest rates. If a customer is experiencing a temporary financial hardship, we may extend the opportunity of a deferment and bring the customer current.
Diversity and Inclusion We strive to recruit, train, and retain outstanding, diverse team members that believe in our mission, live our values, and go the extra mile for our customers. Our inclusive culture allows team members at all levels of the organization to further their careers and achieve both their personal and professional goals.
We strive to recruit, train, and retain outstanding team members who believe in our mission, live our values, and go the extra mile for our customers. Our culture is built on inclusion, collaboration, and continuous growth.
We believe we are well-positioned to capitalize on the significant growth and expansion opportunity within our industry. See also “Competition” included in this report. SEGMENT Consumer and Insurance At December 31, 2023, Consumer and Insurance (“C&I”) was our only reportable segment.
See also “Competition” included in this report. 10 Table of Contents SEGMENT Consumer and Insurance At December 31, 2024, Consumer and Insurance (“C&I”) was our only reportable segment.
Our branch network of approximately 1,400 locations in 44 states is staffed with expert personnel and is complemented by our digital lending and servicing capabilities and central operations staff, which allow us to serve customers in person, digitally, and over the phone.
This network is complemented by our digital lending and servicing capabilities, central operations staff and our network of franchise and independent auto dealerships. Together, these resources allow us to operate in 47 states and serve more customers through their preferred channel, such as in person, digitally, and over the phone.
Certain of these requirements may apply to the personal information of our employees and contractors, as well as to our customers. Various U.S. federal, state, and territory regulators have also enacted, or are in the process of enacting, data security breach notification requirements that are applicable to us.
Various U.S. federal, state, and territory regulators have also enacted, or are in the process of enacting, data security breach notification requirements that are applicable to us. 13 Table of Contents For further discussion on our cybersecurity risk management and strategy, see “Cybersecurity” in Part I - Item 1C. included in this report.
The CFPB has supervisory authority with respect to various federal consumer protection laws for some providers of consumer financial products and services, such as any nonbank that it has reasonable cause to determine has engaged or is engaging in conduct that poses risks to consumers with regard to consumer financial products or services.
The CFPB has supervisory authority with respect to various federal consumer protection laws for some providers of consumer financial products and services, such as nonbanks, regardless of size, in certain specific markets, such as mortgage companies (including mortgage originators, brokers, and servicers).
Our national branch network and digital platform, combined with our central operational capabilities, provide an opportunity to serve this market efficiently and responsibly. In addition, our auto finance and credit card offerings continue to deepen our existing customer relationships, attract new customers, and further our vision to become the lender of choice for nonprime customers.
Our national branch network and digital platform, combined with our central operations and our network of auto dealerships, provide the opportunity for the Company to serve this market efficiently and responsibly.
See Note 10 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information on our insurance business. Products and Services. Our personal loan business comprises products and services that have performed well through various market conditions.
Triton is a property and casualty insurance company licensed in 50 states, the District of Columbia, and Canada to write credit involuntary unemployment, credit disability, and collateral protection insurance. See Note 11 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information on our insurance business. Products and Services.
We currently have servicing facilities in Mendota Heights, Minnesota; Tempe, Arizona; London, Kentucky; Evansville, Indiana; Fort Mill, South Carolina; and Fort Worth, Texas. We believe these facilities position us for additional portfolio purchases and/or fee-based servicing, as well as additional flexibility in the servicing of our lending products.
We currently have central servicing facilities in Mendota Heights, Minnesota; Tempe, Arizona; London, Kentucky; Evansville, Indiana; Fort Mill, South Carolina; Fort Worth, Texas; and Salt Lake City, Utah. In addition, we utilize third-party service providers for staff augmentation.
We continue to invest in our employees and believe training and professional development is critical to maintaining our talent competitiveness and providing best-in-class service for our customers. Compensation and Benefits We offer a total rewards package, which includes competitive compensation, incentives, and comprehensive benefits that will attract, retain, and motivate talent within our organization.
OneMain’s 2023 U.S. Equal Employment Opportunity (“EEO-1”) Report is available on our Investor Relations website, further demonstrating our accountability and transparency. Compensation and Benefits We offer a total rewards package, which includes competitive compensation, incentives, and comprehensive benefits that will attract, retain, and motivate talent within our organization.
For additional information regarding our commitments to support our customers, communities, team members, and our corporate environment, please refer to our 2022 ESG Report, which is available on our Investor Relations website. 18 Table of Contents AVAILABLE INFORMATION OMH and OMFC file annual, quarterly, current reports, and other information with the SEC. OMH also files proxy statements.
As part of Credit Worthy by OneMain Financial, we will award up to $550,000 in scholarships. For additional information regarding our commitments to support our customers, communities, and team members, please refer to our 2023 Impact Report, which is available on our Investor Relations website.
We may extend the opportunity of a deferment and bring the customer current if they are experiencing a temporary financial hardship. We evaluate the borrower’s financial situation to ensure that it is temporary and the ability to resume monthly payments would be solved by the deferment.
In such cases, we evaluate the borrower’s financial situation to ensure that it is temporary and whether the deferment will solve the customer’s ability to resume monthly payments. If we believe the borrower’s financial difficulties are not temporary, the account is evaluated for other methods of borrower assistance, such as modification of loan terms.
Our Diversity Council is sponsored by our Chief Executive Officer and our Chief Human Resources Officer. Council members represent a cross section of leadership in various roles and geographies who provide thought leadership and champion internal and external diversity initiatives in support of the organization.
This commitment is championed by our Diversity Council, sponsored by our Chief Executive Officer (“CEO”) and our Chief Human Resources Officer, and includes leaders from various roles and geographies. The Council drives internal and external initiatives that align with our three pillars: (i) hiring and retaining talent, (ii) talent pipeline and progression, and (iii) creating a culture of inclusion.
We empower our employees to learn new skills, meet personalized development goals, and grow their careers. Team members are guided through their performance management with regular goal setting and coaching. OneMain conducts regular employee trainings, including Continuing Professional Education and leadership development at each level.
OneMain provides team members with the tools, training, and opportunities to grow their careers. From personalized goal setting and coaching to leadership development programs, we invest in our people at every level. Our robust development initiatives include Continuing Professional Education, Women’s Leadership Development, Diverse Talent Leadership, and allyship training for managers.
Removed
At December 31, 2023, we had $21.3 billion of finance receivables due from approximately 2.8 million customer accounts. We also service personal loans for our whole loan sale partners. At December 31, 2023, we had $22.2 billion of managed receivables due from approximately 3.0 million customer accounts.
Added
We believe we are well positioned for future growth with an experienced management team, proven access to the capital markets, and strong demand for consumer credit. At December 31, 2024, we had $23.6 billion of finance receivables due from approximately 3.3 million customer accounts.
Removed
Personal loan origination and servicing, credit cards, and insurance products form the core of our operations. 10 Table of Contents Our insurance business is conducted through our wholly owned insurance subsidiaries, American Health and Life Insurance Company (“AHL”) and Triton Insurance Company (“Triton”).
Added
We service the loans that we retain on our balance sheet, as well as loans owned by third parties. At December 31, 2024, we had $24.7 billion of managed receivables due from approximately 3.4 million customer accounts. Our branch network of more than 1,300 locations is staffed by experienced loan specialists.
Removed
After the re-age, the customer’s account status is brought current. Account Servicing. Account servicing and collections for our finance receivables are handled at the branch location, in our central service centers, through our digital platform, or third-party servicers.
Added
Our auto finance and credit card offerings continue to deepen our existing customer relationships, attract new customers, and further our vision to become the lender of choice for nonprime consumers. We believe we are well-positioned to capitalize on the significant growth and expansion opportunity within our industry.
Removed
For further discussion on our cybersecurity risk management and strategy, see “Cybersecurity” in Part I - Item 1C. included in this report.
Added
Auto finance includes automobile retail installment contracts originated at the point of purchase through a growing network of franchise and independent dealerships. Auto finance loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles.
Removed
In addition to the authority to bring nonbanks under the CFPB’s supervisory authority based on risk determinations, the CFPB also has authority under the Dodd-Frank Act to supervise nonbanks, regardless of size, in certain specific markets, such as mortgage companies (including mortgage originators, brokers, and servicers) and payday lenders.
Added
BrightWay and BrightWay+ credit cards originate through a third-party bank partner from which we purchase the receivable balances. The credit cards are offered through our branch network, direct mail, our digital affiliates, and our website. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured.
Removed
On June 30, 2015, the CFPB published its final rule for designating “larger participants” in the auto financing market. With the adoption of this regulation, we are considered a larger participant in the auto financing market and are subject to supervision and examination by the CFPB.
Added
We solicit customers through a variety of channels, including but not limited to direct mail offers, affiliate partners, our network of auto dealerships, targeted online advertising, search engines, and e-mail.
Removed
In addition, in its Spring 2018 rulemaking agenda, the CFPB stated that it had decided to classify as “inactive” certain rulemakings previously identified in the expectation that the final decisions on proceeding will be made by the next permanent director. A larger-participant rule for consumer installment loans was one of the rulemaking initiatives designated as inactive.
Added
These third parties are located in multiple locations, the selection of which is completed based on services and skills available, cost, and business need.
Removed
There are numerous local, regional, and national competitors that seek to serve the non-prime consumers and that operate within our geographic network or over the internet offering similar products and services. Competition between lenders occurs primarily on the basis of customer experience, price, speed of service, flexibility of loan terms offered, and operational capability.
Added
Various states also have adopted, or are in the process of adopting, laws, rules, and regulations pertaining to privacy and/or cybersecurity that may be as, or more stringent and expansive than federal requirements.
Removed
Our credit cards compete with many local, regional, and national issuers in the non-prime credit card industry. Competition between credit card issuers occurs primarily based on customer experience, price, credit availability, rewards programs, and service quality. We believe that we possess several competitive strengths that allow us to compete effectively with other lenders in our industry.
Added
Certain of these requirements may apply to the personal information of our employees and business partners, as well as to our customers.
Removed
We utilize an omnichannel operating model, including a digital lending footprint and a branch network rooted in local communities. Our national branch network serves as a proven distribution channel. We also have proven analytics that allow us to have strong loss performance through economic cycles.
Added
Our consumer loans and credit cards compete with offerings from banks, credit unions, non-depository institutions, fintech platforms, auto finance companies, and other credit card issuers. Competition in these markets is primarily driven by customer experience, price, speed and quality of service, flexibility of terms, credit availability, product offerings, and operational capability.
Removed
Our diversity strategy, which we treat as an important business priority, has three pillars: (i) hiring and retaining diverse talent, (ii) talent pipeline and progression, and (iii) creating a culture of inclusion. We partner with organizations, including Veteran Job Mission and Direct Employers Association, to help recruit a diverse workforce.
Added
We believe that we possess several competitive strengths that allow us to compete effectively with other lenders in our industry. Our omnichannel operating model combines a branch network rooted in local communities with advanced digital capabilities, offering customers accessible and flexible options.
Removed
All OneMain leaders and team members receive unconscious-bias training aimed at creating a positive, inclusive work environment. We require diverse candidates (women or minorities) to be considered for all leadership roles. This commitment to diversity begins with the Board, whose membership includes 50% ethnic or racial minorities and 25% women. OneMain’s 2022 U.S.
Added
Our national branch network has consistently proven to be a reliable distribution channel, and our addition of Foursight has expanded our network of auto dealerships. Additionally, our extensive data and advanced analytics have supported strong loss performance across economic cycles.
Removed
Equal Employment Opportunity (“EEO-1”) Report is available on our Investor Relations website, further demonstrating our commitment to accountability and transparency. All managers are accountable for attracting and retaining high-quality, diverse talent, and creating a respectful, inclusive work environment as part of their goals and our leadership attributes.
Added
Our funding model, which includes a diverse mix of funding sources and a strong liquidity track record, ensures consistent and reliable access to capital to support our operations and strategic initiatives. We also benefit from our deep understanding of local markets and customers.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIt is not known if or when the CFPB may consider reactivating the rulemaking process for the larger participant rule for consumer installment loans. It also has the authority to bring enforcement actions for violations of laws over which it has jurisdiction regardless of whether it has supervisory authority over an entity.
Biggest changeThe CFPB currently exercises supervisory authority over the Company’s entire consumer lending business as a result of the Company’s status as a “larger participant” in the auto financing market. The CFPB also has the authority to bring enforcement actions for violations of laws over which it has jurisdiction regardless of whether it has supervisory authority over an entity.
These risks include, but are not limited, to the following: • our inability to grow our personal loan portfolio with adequate profitability to fund operations, loan losses, and other expenses; • our inability to monetize assets including, but not limited to, our access to debt and securitization markets; • our inability to obtain the additional necessary funding to finance our operations; • the effect of current and potential new federal, state, and local laws, regulations, or regulatory policies and practices on our ability to conduct business or the way we conduct business, as well as changes that may result from increased regulatory scrutiny of the sub-prime lending industry; • potential liability relating to real estate and personal loans which we have sold or may sell in the future, or relating to securitized loans, if it is determined that there was a non-curable breach of a warranty made in connection with the transaction; • the potential for increasing costs and difficulty in servicing our loan portfolio because of heightened regulatory scrutiny of loan servicing and foreclosure practices in the industry generally; • the potential for additional unforeseen cash demands or acceleration of obligations; • reduced income due to loan modifications where the borrower’s interest rate is reduced, principal payments are deferred, or other concessions are made; • the potential for declines or volatility in bond and equity markets; and • the potential effect on us if the capital levels of our regulated and unregulated subsidiaries prove inadequate to support our business plans.
These risks include, but are not limited, to the following: • our inability to grow our consumer loan and credit card portfolios with adequate profitability to fund operations, loan losses, and other expenses; • our inability to monetize assets including, but not limited to, our access to debt and securitization markets; • our inability to obtain the additional necessary funding to finance our operations; • the effect of current and potential new federal, state, and local laws, regulations, or regulatory policies and practices on our ability to conduct business or the way we conduct business, as well as changes that may result from increased regulatory scrutiny of the sub-prime lending industry; • potential liability relating to real estate and personal loans which we have sold or may sell in the future, or relating to securitized loans, if it is determined that there was a non-curable breach of a warranty made in connection with the transaction; • the potential for increasing costs and difficulty in servicing our loan portfolio because of heightened regulatory scrutiny of loan servicing and foreclosure practices in the industry generally; • the potential for additional unforeseen cash demands or acceleration of obligations; • reduced income due to loan modifications where the borrower’s interest rate is reduced, principal payments are deferred, or other concessions are made; • the potential for declines or volatility in bond and equity markets; and • the potential effect on us if the capital levels of our regulated and unregulated subsidiaries prove inadequate to support our business plans.
By using derivative instruments, we are exposed to credit and market risks, including the risk of loss associated with variations in the spread between the asset yield and the funding and/or hedge cost, default risk, and the risk of insolvency or other inability of the counterparty to a particular derivative financial instrument to perform its obligations. 23 Table of Contents We may not be able to make technological improvements as quickly as some of our competitors, which could harm our ability to compete and adversely affect our financial condition, results of operations, and liquidity.
By using derivative instruments, we are exposed to credit and market risks, including the risk of loss associated with variations in the spread between the asset yield and the funding and/or hedge cost, default risk, and the risk of insolvency or other inability of the counterparty to a particular derivative financial instrument to perform its obligations. 22 Table of Contents We may not be able to make technological improvements as quickly as some of our competitors, which could harm our ability to compete and adversely affect our financial condition, results of operations, and liquidity.
GENERAL RISKS We are a party to various lawsuits and proceedings and may become a party to various lawsuits and proceedings in the future which, if resolved in a manner adverse to us, could have a material adverse effect our financial condition, results of operations, and liquidity.
GENERAL RISKS We are a party to various lawsuits and proceedings and may become a party to various lawsuits and proceedings in the future which, if resolved in a manner adverse to us, could have a material adverse effect on our financial condition, results of operations, and liquidity.
Changes in market conditions may also impact market interest rates which could increase the amount of interest expense that we pay on our borrowings, and in turn increase our cost of funds and adversely affect our business, results of operations, and financial condition. 21 Table of Contents We may be required to indemnify or repurchase finance receivables from purchasers of finance receivables that we have sold or securitized, or which we will sell or securitize in the future, if our finance receivables fail to meet certain criteria or characteristics or under other circumstances, which could adversely affect our financial condition, results of operations, and liquidity.
Changes in market conditions may also impact market interest rates which could increase the amount of interest expense that we pay on our borrowings, and in turn increase our cost of funds and adversely affect our business, results of operations, and financial condition. 20 Table of Contents We may be required to indemnify or repurchase finance receivables from purchasers of finance receivables that we have sold or securitized, or which we will sell or securitize in the future, if our finance receivables fail to meet certain criteria or characteristics or under other circumstances, which could adversely affect our financial condition, results of operations, and liquidity.
Therefore, any person acquiring 10% or more of OMH's common stock may need the prior approval of the Texas insurance and/or licensing regulators, or a determination from such regulators that “control” has not been acquired, which could significantly delay or otherwise impede their ability to complete such purchase. 31 Table of Contents RISKS RELATED TO OMH'S COMMON STOCK The market price and trading volume of OMH's common stock may be volatile, which could result in rapid and substantial losses for OMH's stockholders.
Therefore, any person acquiring 10% or more of OMH's common stock may need the prior approval of the Texas insurance and/or licensing regulators, or a determination from such regulators that “control” has not been acquired, which could significantly delay or otherwise impede their ability to complete such purchase. 30 Table of Contents RISKS RELATED TO OMH'S COMMON STOCK The market price and trading volume of OMH's common stock may be volatile, which could result in rapid and substantial losses for OMH's stockholders.
In the event of such an occurrence, if third-party financing is not available, our liquidity could be materially adversely affected, and as a result, substantial doubt could exist about our ability to continue as a going concern. 29 Table of Contents OMFC's credit ratings could adversely affect our ability to raise capital in the debt markets at attractive rates, which could negatively affect our financial condition, results of operations, and liquidity.
In the event of such an occurrence, if third-party financing is not available, our liquidity could be materially adversely affected, and as a result, substantial doubt could exist about our ability to continue as a going concern. 28 Table of Contents OMFC's credit ratings could adversely affect our ability to raise capital in the debt markets at attractive rates, which could negatively affect our financial condition, results of operations, and liquidity.
While OMH intends to pay its minimum quarterly dividends, currently $1.00 per share, for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant.
While OMH intends to pay its minimum quarterly dividends, currently $1.04 per share, for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant.
Even if integration is successful, anticipated benefits and synergies may not be achieved. 24 Table of Contents RISKS RELATED TO OUR INDUSTRY AND REGULATION We operate in a highly competitive market, and we cannot ensure that the competitive pressures we face will not have a material adverse effect on our financial condition, results of operations, and liquidity.
Even if integration is successful, anticipated benefits and synergies may not be achieved. 23 Table of Contents RISKS RELATED TO OUR INDUSTRY AND REGULATION We operate in a highly competitive market, and we cannot ensure that the competitive pressures we face will not have a material adverse effect on our financial condition, results of operations, and liquidity.
Network and data security measures, such as encryption, access controls, authentication mechanisms, and other security measures intended to protect our systems and data may not be sufficient and data may be vulnerable to hacking, unauthorized 22 Table of Contents access, employee error (including phishing and social engineering), malfeasance, system error, faulty password management, or other weaknesses that could be exploited.
Network and data security measures, such as encryption, access controls, authentication mechanisms, and other security measures intended to protect our systems and data may not be sufficient and data may be vulnerable to hacking, unauthorized 21 Table of Contents access, employee error (including phishing and social engineering), malfeasance, system error, faulty password management, or other weaknesses that could be exploited.
If we are unable to obtain funds from our subsidiaries, or if our subsidiaries do not generate sufficient cash from operations, we may be unable to meet our financial obligations or pay dividends, and the Board may exercise its discretion not to pay dividends. 30 Table of Contents OMH may not pay dividends on its common stock in the future, even if liquidity and leverage targets are met.
If we are unable to obtain funds from our subsidiaries, or if our subsidiaries do not generate sufficient cash from operations, we may be unable to meet our financial obligations or pay dividends, and the Board may exercise its discretion not to pay dividends. 29 Table of Contents OMH may not pay dividends on its common stock in the future, even if liquidity and leverage targets are met.
Regulators may allege or determine, based upon such misconduct, that our systems and procedures to detect and deter employee misconduct are inadequate. Misconduct by our employees, or even unsubstantiated allegations of misconduct, could result in a material adverse effect on our reputation and our business. 33 Table of Contents Item 1B. Unresolved Staff Comments. None.
Regulators may allege or determine, based upon such misconduct, that our systems and procedures to detect and deter employee misconduct are inadequate. Misconduct by our employees, or even unsubstantiated allegations of misconduct, could result in a material adverse effect on our reputation and our business. 32 Table of Contents Item 1B. Unresolved Staff Comments. None.
This limitation may significantly restrict our financing options during times of either market distress or our financial distress, which are precisely the times when having financing options is most important. 28 Table of Contents The assessment of our liquidity is based upon significant judgments and estimates that could prove to be materially incorrect.
This limitation may significantly restrict our financing options during times of either market distress or our financial distress, which are precisely the times when having financing options is most important. 27 Table of Contents The assessment of our liquidity is based upon significant judgments and estimates that could prove to be materially incorrect.
If we are deemed to be an investment company, we may also be required to institute burdensome compliance requirements and our activities may be restricted. 27 Table of Contents RISKS RELATED TO OUR INDEBTEDNESS An inability to access adequate sources of liquidity may adversely affect our ability to fund operational requirements and satisfy financial obligations.
If we are deemed to be an investment company, we may also be required to institute burdensome compliance requirements and our activities may be restricted. 26 Table of Contents RISKS RELATED TO OUR INDEBTEDNESS An inability to access adequate sources of liquidity may adversely affect our ability to fund operational requirements and satisfy financial obligations.
For more information with respect to the regulatory framework affecting our businesses, see “Business—Regulation” included in this report. 25 Table of Contents Requirements of the Dodd-Frank Act and oversight by the CFPB significantly increase our regulatory costs and burdens.
For more information with respect to the regulatory framework affecting our businesses, see “Business—Regulation” included in this report. 24 Table of Contents Requirements of the Dodd-Frank Act and oversight by the CFPB significantly increase our regulatory costs and burdens.
See Note 4 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for quantification of our largest concentrations of net finance receivables. We cannot give assurance that our policies and procedures for underwriting, processing, and servicing personal loans or credit cards will adequately adapt to adverse economic or other changes.
See Note 5 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for quantification of our largest concentrations of net finance receivables. We cannot give assurance that our policies and procedures for underwriting, processing, and servicing consumer loans or credit cards will adequately adapt to adverse economic or other changes.
See Note 7 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information on goodwill and intangible asset impairment. Damage to our reputation could adversely impact our business and financial results. Our ability to attract and retain customers and employees is significantly impacted by our reputation.
See Note 8 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information on goodwill and intangible assets. Damage to our reputation could adversely impact our business and financial results. Our ability to attract and retain customers and employees is significantly impacted by our reputation.
The allowance is primarily based on historical experience, current conditions, and our reasonable and 20 Table of Contents supportable forecast of economic conditions.
The allowance is primarily based on historical experience, current conditions, and our reasonable and 19 Table of Contents supportable forecast of economic conditions.
For additional information regarding pending legal proceedings and other contingencies, see Note 14 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report. 32 Table of Contents Certain operations rely on external vendors.
For additional information regarding pending legal proceedings and other contingencies, see Note 15 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report. 31 Table of Contents Certain operations rely on external vendors.
These provisions provide for: • a classified Board with staggered three-year terms; • certain rights with respect to the designation of directors for nomination and election to the Board, including the ability of Värde to appoint one director, for so long as Värde has beneficial ownership of less than 10% but at least 5% of the voting power of OMH; • removal of directors only for cause and only with the affirmative vote of at least 80% of the voting interest of stockholders entitled to vote; • no ability for stockholders to call special meetings of OMH's stockholders; • advance notice requirements by stockholders with respect to director nominations and actions to be taken at annual meetings; • the ability for stockholders to act outside a meeting by written consent only if unanimous; and • the issuance of blank check preferred stock by the Board from time to time in one or more series and to establish the terms, preferences and rights of any such series of preferred stock, all without approval of OMH stockholders.
These provisions provide for: • a classified Board with staggered three-year terms; • certain rights with respect to the designation of directors for nomination and election to the Board based on established levels of beneficial ownership of OMH; • removal of directors only for cause and only with the affirmative vote of at least 80% of the voting interest of stockholders entitled to vote; • no ability for stockholders to call special meetings of OMH's stockholders; • advance notice requirements by stockholders with respect to director nominations and actions to be taken at annual meetings; • the ability for stockholders to act outside a meeting by written consent only if unanimous; and • the issuance of blank check preferred stock by the Board from time to time in one or more series and to establish the terms, preferences and rights of any such series of preferred stock, all without approval of OMH stockholders.
Compliance with current or future consumer privacy, data protection, and cybersecurity laws and regulations could result in higher compliance, technology, or other operating costs. Any violations of these laws and regulations may require us to change our business practices or operational structure.
Compliance with current or future consumer privacy, data protection, and cybersecurity laws and regulations could result in higher compliance, technology, or other operating costs. Any violations of these laws and regulations may require us to change our business practices or operational structure. 25 Table of Contents Our use of third-party vendors is subject to regulatory review.
OMFC and OMFG currently act as the servicers with respect to the securitization trusts and related series of asset-backed securities. If OMFC or OMFG defaults in its servicing obligations, an early amortization event could occur with respect to the relevant asset-backed securities and OMFC or OMFG, as applicable, could be replaced as servicer.
We currently act as the servicer with respect to the securitization trusts and related series of asset-backed securities. If we default in our servicing obligations, an early amortization event could occur with respect to the relevant asset-backed securities and we could be replaced as servicer.
Any future violations of these laws and regulations could adversely impact our reputation and subject us to material legal claims, monetary penalties, sanctions, and obligations to compensate and/or notify customers, employees, state attorneys general, regulators, and others, or take other remedial actions. 26 Table of Contents Our use of third-party vendors is subject to regulatory review.
Any violation of the consent order during its effective period could adversely impact our reputation and subject us to material legal claims, monetary penalties, sanctions, and obligations to compensate and/or notify customers, employees, state attorneys general, regulators, and others, or take other remedial actions.
Removed
The CFPB currently has supervisory authority over the Company as a mortgage servicer,and as a “larger participant” in the auto financing market. The larger-participant rule for consumer installment loans was one of the rulemaking initiatives the CFPB designated as inactive in its Spring 2018 rulemaking agenda.
Added
In this regard, on May 31, 2023, we entered into a consent order with the CFPB to resolve a previously disclosed investigation focused on certain refunding practices for optional insurance and membership plan products that were subsequently canceled by the consumer after purchase.
Removed
In this regard, on May 24, 2023, we entered into a consent order with the NYDFS relating primarily to a past examination of our cybersecurity policies from 2017 to early 2020. Pursuant to the consent order, we agreed to pay a $4.25 million civil penalty and represent that certain improvements to our cybersecurity controls and procedures had previously been completed.
Added
In agreeing to this consent order, we did not admit to any of the CFPB’s factual findings or legal conclusions.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

2 edited+0 added−0 removed13 unchanged
Biggest changeOur cyber defenses are reviewed annually by third-party penetration testers using the Adversarial Tactics, Techniques and Common Knowledge (“MITRE ATT&CK”) framework and the incident response is reviewed by experienced counsel. We incorporate cybersecurity risk reviews of third-party service providers within our Enterprise Third Party Risk Management Program. We conduct annual Cyber Risk Assessments which drive strategic decisions.
Biggest changeOur cyber defenses are reviewed annually by third-party penetration testers using the Adversarial Tactics, Techniques and Common Knowledge (“MITRE ATT&CK”) framework and the incident response plan is reviewed by experienced counsel. We incorporate cybersecurity risk reviews of third-party service providers within our Enterprise Third Party Risk Management Program. We conduct annual Cyber Risk Assessments which drive strategic decisions.
The General Counsel, CISO, and CTO meet regularly to evaluate the Company’s Cybersecurity Program. 34 Table of Contents The Board is responsible for overseeing the Company’s management of cybersecurity risk, including oversight into appropriate risk mitigation, strategies, processes, systems, and controls.
The General Counsel, CISO, and CTO meet regularly to evaluate the Company’s Cybersecurity Program. 33 Table of Contents The Board is responsible for overseeing the Company’s management of cybersecurity risk, including oversight into appropriate risk mitigation, strategies, processes, systems, and controls.

Item 2. Properties

Properties — owned and leased real estate

3 edited+1 added−1 removed0 unchanged
Biggest changeOur investment in real estate and tangible property is not significant in relation to our total assets due to the nature of our business. At December 31, 2023, our subsidiaries owned a loan servicing facility in London, Kentucky, and six buildings in Evansville, Indiana. The Evansville buildings also support our administrative and central functions.
Biggest changeAt December 31, 2024, our subsidiaries owned a loan servicing facility in London, Kentucky, and six buildings in Evansville, Indiana. The Evansville buildings also support our administrative and central functions. Our branch office operations, administrative offices, central operations, and loan servicing facilities support our Consumer and Insurance segment.
Item 2. Properties. Our branch network includes approximately 1,400 locations in 44 states. Our branches have lease terms generally ranging from three to five years. In addition to our branches, several of our central servicing facilities operate in leased premises.
Item 2. Properties. Our branch network includes more than 1,300 locations in 44 states. Our branches have lease terms generally ranging from three to five years. In addition to our branches, several of our central servicing facilities operate in leased premises.
These facilities include Fort Mill, South Carolina; Tempe, Arizona; Fort Worth, Texas; and Mendota Heights, Minnesota, with leases that expire in 2027, 2027, 2028, and 2029, respectively. We also lease administrative offices in Irving, Texas; Baltimore, Maryland; Charlotte, North Carolina; New York, New York; and Wilmington, Delaware, which expire in 2025, 2026, 2027, 2028, and 2031, respectively.
These facilities include Fort Mill, South Carolina; Tempe, Arizona; Fort Worth, Texas; Mendota Heights, Minnesota; and Salt Lake City, Utah, with leases that expire in 2027, 2027, 2028, 2029, and 2032, respectively.
Removed
Our branch office operations, administrative offices, central operations, and loan servicing facilities support our Consumer and Insurance segment.
Added
We also lease administrative offices in Baltimore, Maryland; Charlotte, North Carolina; New York, New York; Irving, Texas; and Wilmington, Delaware, which expire in 2026, 2027, 2028, 2030, and 2031, respectively. Our investment in real estate and tangible property is not significant in relation to our total assets due to the nature of our business.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings. The information required with respect to this item can be found under "Legal Contingencies" in Note 14 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this Annual Report, which is incorporated by reference into this Item 3.
Biggest changeItem 3. Legal Proceedings. The information required with respect to this item can be found under "Legal Contingencies" in Note 15 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this Annual Report, which is incorporated by reference into this Item 3.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

9 edited+2 added−1 removed2 unchanged
Biggest changeISSUER PURCHASES OF EQUITY SECURITIES The following table presents information regarding repurchases of our common stock, excluding commissions and fees, during the quarter ended December 31, 2023, based on settlement date: Period Total Number of Shares Purchased Average Price paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a) Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (a) October 1 - October 31 530,814 $ 37.81 530,814 $ 660,499,429 November 1 - November 30 — — — 660,499,429 December 1 - December 31 — — — 660,499,429 Total 530,814 $ 37.81 530,814 (a) On February 2, 2022, the Board authorized a $1 billion stock repurchase program, excluding fees, commissions, and other expenses related to the repurchases.
Biggest changeISSUER PURCHASES OF EQUITY SECURITIES The following table presents information regarding repurchases of our common stock, excluding commissions and fees, during the quarter ended December 31, 2024, based on settlement date: Period Total Number of Shares Purchased Average Price paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a) Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (a) October 1 - October 31 74,565 $ 46.49 74,565 $ 625,629,445 November 1 - November 30 — — — 625,629,445 December 1 - December 31 — — — 625,629,445 Total 74,565 $ 46.49 74,565 (a) On February 2, 2022, the Board authorized a $1 billion stock repurchase program, excluding fees, commissions, and other expenses related to the repurchases, originally scheduled to expire on December 31, 2024.
While OMH intends to pay its minimum quarterly dividend, currently $1.00 per share, for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant.
While OMH intends to pay its minimum quarterly dividend, currently $1.04 per share, for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant.
This data assumes simultaneous investments of $100 on December 31, 2018 and reinvestment of any dividends. The information in this “Stock Performance” section shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Exchange Act.
This data assumes simultaneous investments of $100 on December 31, 2019 and reinvestment of any dividends. The information in this “Stock Performance” section shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Exchange Act.
To provide funding for the dividends mentioned above, OMFC paid dividends to OMH of $478 million and $471 million in 2023 and 2022, respectively. Because we are holding companies and have no direct operations, we will only be able to pay dividends from our available cash on hand and any funds we receive from our subsidiaries.
To provide funding for the dividends mentioned above, OMFC paid dividends to OMH of $489 million and $478 million in 2024 and 2023, respectively. Because we are holding companies and have no direct operations, we will only be able to pay dividends from our available cash on hand and any funds we receive from our subsidiaries.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. MARKET INFORMATION AND STOCKHOLDERS OMH’s common stock is listed for trading on the New York Stock Exchange (“NYSE”) under the symbol “OMF.” On January 31, 2024, there were two record holders of OMH's common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. MARKET INFORMATION AND STOCKHOLDERS OMH’s common stock is listed for trading on the New York Stock Exchange (“NYSE”) under the symbol “OMF.” On January 27, 2025, there were two record holders of OMH’s common stock.
See Notes 8 and 10 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information on OMFC's debt agreements and our insurance subsidiary dividends, respectively.
See Notes 9 and 11 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information on OMFC’s debt agreements and our insurance subsidiary dividends, respectively.
OMH is not obligated to purchase any shares under the program, which may be modified, suspended or discontinued at any time. 36 Table of Contents STOCK PERFORMANCE The following data and graph show a comparison of the cumulative total shareholder return for OMH's common stock, the NYSE Financial Sector (Total Return) Index, and the NYSE Composite (Total Return) Index from December 31, 2018 through December 31, 2023.
OMH is not obligated to purchase any shares under the program, which may be modified, suspended or discontinued at any time. 35 Table of Contents STOCK PERFORMANCE The following data and graph show a comparison of the cumulative total shareholder return for OMH's common stock, the NYSE Financial Sector (Total Return) Index, and the NYSE Composite (Total Return) Index from December 31, 2019 through December 31, 2024.
The authorization expires on December 31, 2024. The timing, number and share price of any additional shares repurchased will be determined by OMH based on its evaluation of market conditions and other factors and will be made in accordance with applicable securities laws in either the open market or in privately negotiated transactions.
The timing, number and share price of any additional shares repurchased will be determined by OMH based on its evaluation of market conditions and other factors and will be made in accordance with applicable securities laws in either the open market or in privately negotiated transactions.
This figure does not reflect the beneficial ownership of shares held in nominee name. On January 31, 2024, the closing price for OMH's common stock, as reported on the NYSE, was $47.60. DIVIDEND POLICY In February of 2019, the Board announced a program of quarterly dividends.
This figure does not reflect the beneficial ownership of shares held in nominee name. On January 27, 2025, the closing price for OMH’s common stock, as reported on the NYSE, was $57.62. DIVIDEND POLICY In February of 2019, the Board announced a program of quarterly dividends.
Removed
At December 31, 2018 2019 2020 2021 2022 2023 OneMain Holdings, Inc. $ 100.00 $ 189.30 $ 245.53 $ 316.21 $ 229.37 $ 374.03 NYSE Composite Index 100.00 125.41 133.49 162.71 147.75 168.32 NYSE Financial Sector Index 100.00 129.21 125.41 158.88 138.68 162.51
Added
On October 16, 2024, the Board approved an extension of the repurchase program to December 31, 2026.
Added
At December 31, 2019 2020 2021 2022 2023 2024 OneMain Holdings, Inc. $ 100.00 $ 135.33 $ 167.32 $ 121.88 $ 198.76 $ 228.94 NYSE Composite Index 100.00 107.09 129.39 117.49 133.85 155.22 NYSE Financial Sector Index 100.00 97.76 122.44 106.95 125.32 156.48 Item 6. [Reserved] 36 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

99 edited+21 added−13 removed26 unchanged
Biggest changeCONSUMER AND INSURANCE OMH's adjusted pretax income and selected financial statistics for C&I on an adjusted Segment Accounting Basis were as follows: (dollars in millions) At or for the Years Ended December 31, 2023 2022 2021 Interest income $ 4,559 $ 4,429 $ 4,355 Interest expense 1,015 886 930 Provision for finance receivable losses 1,721 1,399 587 Net interest income after provision for finance receivable losses 1,823 2,144 2,838 Other revenues 727 644 597 Other expenses 1,676 1,582 1,517 Adjusted pretax income (non-GAAP) $ 874 $ 1,206 $ 1,918 Selected Financial Statistics * Total finance receivables: Net finance receivables $ 21,349 $ 19,987 $ 19,215 Average net receivables $ 20,528 $ 19,442 $ 18,286 Gross charge-off ratio 8.74 % 7.40 % 5.42 % Recovery ratio (1.26) % (1.29) % (1.21) % Net charge-off ratio 7.48 % 6.10 % 4.20 % Personal loans: Net finance receivables $ 21,019 $ 19,880 $ 19,190 Yield 22.20 % 22.77 % 23.82 % Origination volume $ 12,851 $ 13,879 $ 13,825 Number of accounts 2,415,058 2,334,097 2,336,845 Number of accounts originated 1,258,813 1,365,989 1,388,123 Net charge-off ratio 7.42 % 6.09 % 4.20 % 30-89 Delinquency ratio 3.28 % 3.07 % 2.43 % Credit cards: Net finance receivables $ 330 $ 107 $ 25 Purchase volume $ 442 $ 172 $ 26 Number of open accounts 430,784 135,335 65,513 * See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios. 46 Table of Contents Comparison of Adjusted Pretax Income for Twelve Months Ended December 31, 2023 and 2022 Interest income increased $130 million or 3% in 2023 when compared to 2022 due to growth in average net receivables, partially offset by lower yield.
Biggest change(dollars in millions) At or for the Years Ended December 31, 2024 2023 2022 Interest income $ 4,965 $ 4,559 $ 4,429 Interest expense 1,181 1,015 886 Provision for finance receivable losses 1,981 1,721 1,399 Net interest income after provision for finance receivable losses 1,803 1,823 2,144 Other revenues 722 727 644 Other expenses 1,743 1,676 1,582 Adjusted pretax income (non-GAAP) $ 782 $ 874 $ 1,206 Selected Financial Statistics (a) Total finance receivables: Net finance receivables $ 23,598 $ 21,349 $ 19,987 Average net receivables $ 22,440 $ 20,528 $ 19,442 Gross charge-off ratio (b) 9.49 % 8.74 % 7.40 % Recovery ratio (1.37) % (1.26) % (1.29) % Net charge-off ratio (b) 8.11 % 7.48 % 6.10 % 46 Table of Contents (dollars in millions) At or for the Years Ended December 31, 2024 2023 2022 Selected Financial Statistics, continued (a) Personal loans: Net finance receivables $ 20,833 $ 20,274 $ 19,498 Origination volume $ 12,246 $ 12,296 $ 13,525 Number of accounts 2,375,138 2,361,026 2,305,676 Number of accounts originated 1,171,271 1,224,362 1,342,276 Auto finance: Net finance receivables $ 2,122 $ 745 $ 382 Origination volume $ 1,075 $ 555 $ 354 Number of accounts 126,518 54,032 28,421 Number of accounts originated 53,222 34,451 23,713 Consumer loans: Net finance receivables $ 22,955 $ 21,019 $ 19,880 Yield 22.07 % 22.20 % 22.77 % Origination volume $ 13,321 $ 12,851 $ 13,879 Number of accounts 2,501,656 2,415,058 2,334,097 Number of accounts originated 1,224,493 1,258,813 1,365,989 Net charge-off ratio (b) 7.94 % 7.42 % 6.09 % 30-89 Delinquency ratio 3.24 % 3.28 % 3.07 % Credit cards: Net finance receivables $ 643 $ 330 $ 107 Purchase volume $ 892 $ 442 $ 172 Number of open accounts 782,932 430,784 135,335 (a) See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.
See Note 8 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in this report for more information on the restrictive covenants under OMFC’s debt agreements, as well as the guarantees of OMFC’s long-term debt. Securitized Borrowings We execute private securitizations under Rule 144A of the Securities Act of 1933, as amended.
See Note 9 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in this report for more information on the restrictive covenants under OMFC’s debt agreements, as well as the guarantees of OMFC’s long-term debt. Securitized Borrowings We execute private securitizations under Rule 144A of the Securities Act of 1933, as amended.
We intend to support our liquidity position by utilizing some or all of the following strategies: • maintaining disciplined underwriting standards and pricing for loans we originate or purchase and managing purchases of finance receivables; • pursuing additional debt financings (including new secured and unsecured debt issuances, debt refinancing transactions, unsecured corporate revolvers, and revolving conduit facilities), or a combination of the foregoing; • purchasing portions of our outstanding indebtedness through open market or privately negotiated transactions with third parties or pursuant to one or more tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration, as we may determine; and • obtaining new and extending existing secured revolving facilities to provide committed liquidity in case of prolonged market fluctuations.
We intend to support our liquidity position by utilizing some or all of the following strategies: • maintaining disciplined underwriting standards and pricing for loans we originate or purchase and managing purchases of finance receivables; • pursuing additional debt financings (including new secured and unsecured debt issuances, debt refinancing transactions, unsecured corporate revolvers, revolving conduit facilities, and credit card revolving VFN facilities), or a combination of the foregoing; • purchasing portions of our outstanding indebtedness through open market or privately negotiated transactions with third parties or pursuant to one or more tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration, as we may determine; and • obtaining new and extending existing secured revolving facilities and credit card revolving VFN facilities to provide committed liquidity in case of prolonged market fluctuations.
While OMH intends to pay its minimum quarterly dividend, currently $1.00 per share, for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant.
While OMH intends to pay its minimum quarterly dividend, currently $1.04 per share, for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant.
When personal loans are contractually 60 days past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. Use of our central operations teams for managing late-stage delinquency allows us to apply more advanced collection techniques and tools to drive credit performance and operational efficiencies.
When consumer loans are contractually 60 days past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. Use of our central operations teams for managing late-stage delinquency allows us to apply more advanced collection techniques and tools to drive credit performance and operational efficiencies.
No new volume is assumed. Personal loan renewals are a significant piece of our new volume and are considered a terminal event of the previous loan. For our personal loans, we have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charges previously accrued after four contractual payments become past due.
No new volume is assumed. Loan renewals are a significant piece of our new volume and are considered a terminal event of the previous loan. For our consumer loans, we have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charges previously accrued after four contractual payments become past due.
Critical Accounting Policies and Estimates We consider the following policies to be our most critical accounting policies because they involve critical accounting estimates and a significant degree of management judgment: ALLOWANCE FOR FINANCE RECEIVABLE LOSSES We estimate the expected credit losses on our finance receivables over their expected lives based on historical experience, current conditions, and reasonable and supportable forecasts of collectability.
Critical Accounting Policies and Estimates We consider the following policies to be our most critical accounting policies because they involve critical accounting estimates and a significant degree of management judgment: ALLOWANCE FOR FINANCE RECEIVABLE LOSSES - CONSUMER LOANS We estimate the expected credit losses on our finance receivables over their expected lives based on historical experience, current conditions, and reasonable and supportable forecasts of collectability.
(b) Future interest payments on floating-rate debt are estimated based upon rates in effect at December 31, 2023. OFF-BALANCE SHEET ARRANGEMENTS We have no material off-balance sheet arrangements as defined by SEC rules, and we had no material off-balance sheet exposure to losses associated with unconsolidated VIEs at December 31, 2023 or December 31, 2022.
(b) Future interest payments on floating-rate debt are estimated based upon rates in effect at December 31, 2024. OFF-BALANCE SHEET ARRANGEMENTS We have no material off-balance sheet arrangements as defined by SEC rules, and we had no material off-balance sheet exposure to losses associated with unconsolidated VIEs at December 31, 2024 or December 31, 2023.
Comparison of Consolidated Results for 2022 and 2021 For a comparison of OMH's results of operation for the years ended 2022 and 2021, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—OMH’s Consolidated Results” in Part II - Item 7 of OMH's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 10, 2023. 44 Table of Contents NON-GAAP FINANCIAL MEASURES Management uses C&I adjusted pretax income (loss), a non-GAAP financial measure, as a key performance measure of our segment.
Comparison of Consolidated Results for 2023 and 2022 For a comparison of OMH's results of operation for the years ended 2023 and 2022, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—OMH’s Consolidated Results” in Part II - Item 7 of OMH’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 13, 2024. 44 Table of Contents NON-GAAP FINANCIAL MEASURES Management uses C&I adjusted pretax income (loss), a non-GAAP financial measure, as a key performance measure of our segment.
Our estimate of the allowance for finance receivable losses is primarily based on historical loss experience using a cumulative loss model applied to our personal loan portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our personal loans are primarily segmented in the loss model by contractual delinquency status.
Our estimate of the allowance for finance receivable losses is primarily based on historical loss experience using a cumulative loss model applied to our consumer loan portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our consumer loans are primarily segmented in the loss model by contractual delinquency status.
Due to the nominal differences between OMFC and OMH, content throughout this section relates only to OMH. See Note 1 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information. OMH'S CONSOLIDATED RESULTS See the table below for OMH's consolidated operating results and selected financial statistics.
Due to the nominal differences between OMFC and OMH, content throughout this section relates only to OMH. See Note 1 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information. OMH’S CONSOLIDATED RESULTS The following table below presents OMH’s consolidated operating results and selected financial statistics.
See Note 17 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for a description of our segment, methodologies used to allocate revenues and expenses to our C&I segment, and reconciliations of segment total to consolidated financial statement amounts.
See Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for a description of our segment and methodologies used to allocate revenues and expenses to our C&I segment and for reconciliations of segment total to consolidated financial statement amounts.
We consider our personal loans to be nonperforming at 90 days contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrue d . For credit cards, we accrue finance charges and fees until charge-off at 180 days contractually past due, at which point we reverse finance charges and fees previously accrued.
We consider our consumer loans to be nonperforming at 90 days contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrue d . For credit cards, we accrue finance charges and fees until charge-off at 180 days contractually past due, at which point we reverse finance charges and fees previously accrued.
We also consider inflationary pressures, consumer confidence levels, and interest rate increases that may continue to impact the economic outlook. At December 31, 2023, our economic forecast used a reasonable and supportable period of 12 months.
We also consider inflationary pressures, consumer confidence levels, and interest rate increases that may continue to impact the economic outlook. At December 31, 2024, our economic forecast used a reasonable and supportable period of 12 months.
OMH's Financing Activities Net cash provided by financing activities of $932 million for the year ended December 31, 2023 was primarily due to the issuance and borrowings of long-term debt, partially offset by repayments and repurchases of long-term debt and cash dividends paid.
Net cash provided by financing activities of $932 million for the year ended December 31, 2023 was due to the issuance and borrowings of long-term debt, partially offset by repayments and repurchases of long-term debt and cash dividends paid.
Credit insurance and non-credit insurance products are provided by our affiliated insurance companies. We offer Guaranteed Asset Protection (“GAP”) coverage as a waiver product or insurance. We also offer optional membership plans from an unaffiliated company. OUR SEGMENT At December 31, 2023, Consumer and Insurance (“C&I”) is our only reportable segment, which includes personal loans, credit cards, and optional products.
Credit insurance and non-credit insurance products are provided by our affiliated insurance companies. We offer Guaranteed Asset Protection (“GAP”) coverage as a waiver product or insurance. We also offer optional membership plans from an unaffiliated company. OUR SEGMENT At December 31, 2024, Consumer and Insurance (“C&I”) is our only reportable segment, which includes consumer loans, credit cards, and optional products.
See Note 17 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for more information about our segment. 39 Table of Contents HOW WE ASSESS OUR BUSINESS PERFORMANCE We closely monitor the primary drivers of pretax operating income, which consist of the following: Interest Income We track interest income, including certain fees earned on our finance receivables, and continually monitor the components that impact our yield.
See Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for more information about our segment. 38 Table of Contents HOW WE ASSESS OUR BUSINESS PERFORMANCE We closely monitor the primary drivers of pretax operating income, which consist of the following: Interest Income We track interest income, including certain fees earned on our finance receivables, and continually monitor the components that impact our yield.
For information regarding the issuances and redemption of our unsecured debt, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.
For information regarding the issuances and redemption of our unsecured debt and our unsecured corporate revolver, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.
The table below outlines OMFC’s long-term corporate debt ratings and outlook by rating agencies: As of December 31, 2023 Rating Outlook S&P BB Stable Moody’s Ba2 Stable KBRA BB+ Positive Currently, no other entity has a corporate debt rating, though they may be rated in the future.
The table below outlines OMFC’s long-term corporate debt ratings and outlook by rating agencies: As of December 31, 2024 Rating Outlook S&P BB Stable Moody’s Ba2 Stable KBRA BB+ Stable Currently, no other entity has a corporate debt rating, though they may be rated in the future.
To provide funding for the OMH stock repurchases, the OMFC Board of Directors authorized dividend payments in the amount of $60 million. For additional information regarding the shares repurchased, see Item 5.
To provide funding for the OMH stock repurchases, the OMFC Board of Directors authorized dividend payments in the amount of $65 million. For additional information regarding the shares repurchased, see Item 5.
However, it is possible that the actual outcome of one or more of our plans could be materially different than expected or that one or more of our significant judgments or estimates could prove to be materially incorrect. OUR INSURANCE SUBSIDIARIES Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends.
However, it is possible that the actual outcome of one or more of our plans could be materially different than expected or that one or more of our significant judgments or estimates could prove to be materially incorrect. 55 Table of Contents OUR INSURANCE SUBSIDIARIES Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends.
Future purchases may be made through the open market, privately negotiated transactions with third parties, or pursuant to one or more tender or exchange offers, all of which are subject to terms, prices, and consideration we may determine at our discretion. During the year ended December 31, 2023, OMH generated net income of $641 million.
Future purchases may be made through the open market, privately negotiated transactions with third parties, or pursuant to one or more tender or exchange offers, all of which are subject to terms, prices, and consideration we may determine at our discretion. During the year ended December 31, 2024, OMH generated net income of $509 million.
At December 31, 2023, we had $1.7 billion of investment securities, which are all held as part of our insurance operations and are unavailable for general corporate purposes. Liquidity Risks and Strategies OMFC’s credit ratings are non-investment grade, which has a significant impact on our cost and access to capital.
At December 31, 2024, we had $1.6 billion of investment securities, which are all held as part of our insurance operations and are unavailable for general corporate purposes. Liquidity Risks and Strategies OMFC’s credit ratings are non-investment grade, which has a significant impact on our cost and access to capital.
LIQUIDITY OMH's Operating Activities Net cash provided by operations of $2.5 billion for the year ended December 31, 2023 reflected net income of $641 million, the impact of non-cash items including provision for finance receivable losses of $1.7 billion, and an unfavorable change in working capital of $44 million.
Net cash provided by operations of $2.5 billion for the year ended December 31, 2023 reflected net income of $641 million, the impact of non-cash items including provision for finance receivable losses of $1.7 billion, and an unfavorable change in working capital of $44 million.
These seasonal trends contribute to fluctuations in our operating results and cash needs throughout the year. 57 Table of Contents
These seasonal trends contribute to fluctuations in our operating results and cash needs throughout the year. 59 Table of Contents
These risks include, but are not limited to, the following: • our inability to grow or maintain our personal loan portfolio with adequate profitability; • the effect of federal, state and local laws, regulations, or regulatory policies and practices; • effects of ratings downgrades on our secured or unsecured debt; • potential liability relating to real estate and personal loans which we have sold or may sell in the future, or relating to securitized loans; and • the potential for disruptions in the debt and equity markets.
These risks include, but are not limited to, the following: • our inability to grow or maintain our consumer loan and credit card portfolios with adequate profitability; • the effect of federal, state and local laws, regulations, or regulatory policies and practices; • effects of ratings downgrades on our secured or unsecured debt; • potential liability relating to real estate and consumer loans which we have sold or may sell in the future, or relating to securitized loans; and • the potential for disruptions in the debt and equity markets.
Macroeconomic Sensitivity To demonstrate the sensitivity of forecasting macroeconomic conditions, we compared the output of our model using a baseline scenario to that of a downside scenario. As of December 31, 2023, the impact of a ten percentage point increase in weighting towards a downside scenario increased the estimate by approximately $25 million.
Macroeconomic Sensitivity To demonstrate the sensitivity of forecasting macroeconomic conditions, we compared the output of our model using a baseline scenario to that of a downside scenario. As of December 31, 2024, the impact of a ten percentage point increase in weighting towards a downside scenario increased the estimate by approximately $28 million.
Whole Loan Sale Transactions We have whole loan sale flow agreements with third parties, with remaining terms of less than one year, in which we agreed to sell a total of $60 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest.
Whole Loan Sale Transactions We have whole loan sale flow agreements with third parties, with current terms of less than one year, in which we agreed to sell a remaining total of $900 million gross receivables of newly originated unsecured personal loans along with any associated accrued interest.
At December 31, 2023, we had approximately 431 thousand open credit card customer accounts, totaling $330 million of net finance receivables, compared to approximately 135 thousand open credit card customer accounts, totaling $107 million of net finance receivables at December 31, 2022. • Optional Products — We offer our custom ers optional credit insurance products (life, disability, and involuntary unemployment insurance) and optional non-credit insurance products through both our branch network and our central operations.
At December 31, 2024, we had approximately 783 thousand open credit card customer accounts, totaling $643 million of net finance receivables, compared to approximately 431 thousand open credit card customer accounts, totaling $330 million of net finance receivables at December 31, 2023. • Optional Products — We offer our custom ers optional credit insurance products (life, disability, and involuntary unemployment insurance) and optional non-credit insurance products through both our branch network and our central operations.
(b) Not applicable. 49 Table of Contents The current delinquency status of our finance receivable portfolio, inclusive of recent borrower performance and loss performance, volume of our modified finance receivable activity, level and recoverability of collateral securing our finance receivable portfolio, and the reasonable and supportable forecast of economic conditions are the primary drivers that can cause fluctuations in our allowance ratio from period to period.
The current delinquency status of our finance receivable portfolio, inclusive of recent borrower performance and loss performance, volume of our modified finance receivable activity, level and recoverability of collateral securing our finance receivable portfolio, portfolio mix, and the reasonable and supportable forecast of economic conditions are the primary drivers that can cause fluctuations in our allowance ratio from period to period.
Comparison of Adjusted Pretax Income for 2022 and 2021 For a comparison of OMH's adjusted pretax income for C&I for the years ended 2022 and 2021, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—OMH’s Consolidated Results” in Part II -Item 7 of OMH's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 10, 2023. 47 Table of Contents Credit Quality FINANCE RECEIVABLES Our net finance receivables, consisting of personal loans and credit cards, were $21.3 billion at December 31, 2023 and $20.0 billion at December 31, 2022.
Comparison of Adjusted Pretax Income for 2023 and 2022 For a comparison of OMH's adjusted pretax income for C&I for the years ended 2023 and 2022, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—OMH’s Consolidated Results” in Part II -Item 7 of OMH’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 13, 2024 48 Table of Contents Credit Quality FINANCE RECEIVABLES Our net finance receivables, consisting of consumer loans and credit cards, were $23.6 billion at December 31, 2024 and $21.3 billion at December 31, 2023.
OMH's Investing Activities Net cash used for investing activities of $2.9 billion for the year ended December 31, 2023 was due to net principal originations and purchases of finance receivables and purchases of available-for-sale and other securities, partially offset by the proceeds from sales of finance receivables and calls, sales, and maturities of available-for-sale and other securities.
OMH’s Investing Activities Net cash used for investing activities of $3.3 billion for the year ended December 31, 2024 was due to net principal originations and purchases of finance receivables, purchases of available-for-sale and other securities, and the Foursight Acquisition, partially offset by the proceeds from sales of finance receivables and calls, sales, and maturities of available-for-sale and other securities.
See Notes 8 and 9 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information on our long-term debt, securitization transactions, private secured term funding, and revolving conduit facilities. Credit Ratings Our credit ratings impact our ability to access capital markets and our borrowing costs.
See Notes 9 and 10 of the Notes to the Consolidated Financial Statements included in this report for further information on our long-term debt, securitization transactions, private secured term funding facilities, revolving conduit facilities, and credit card revolving VFN facilities. Credit Ratings Our credit ratings impact our ability to access capital markets and our borrowing costs.
As a holding company, all of the funds generated from our operations are earned by our operating subsidiaries. Our operating subsidiaries’ primary cash needs relate to funding our lending activities, our debt service obligations, our operating expenses, payment of insurance claims, and supporting strategic initiatives.
We may also utilize other sources in the future. As a holding company, all of the funds generated from our operations are earned by our operating subsidiaries. Our operating subsidiaries’ primary cash needs relate to funding our lending activities, our debt service obligations, our operating expenses, payment of insurance claims, and supporting strategic initiatives.
Cash Dividends to OMH's Common Stockholders For information regarding the quarterly dividends declared by OMH, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.
Mamik resigned from the OMH Board of Directors. 40 Table of Contents Cash Dividends to OMH’s Common Stockholders For information regarding the quarterly dividends declared by OMH, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.
OMH’s net cash outflow from operating and investing activities totaled $343 million for the year ended December 31, 2023. At December 31, 2023, our scheduled interest payments for 2024 totaled $526 million and there were no scheduled principal payments for 2024 on our existing unsecured debt. As of December 31, 2023, we had $8.4 billion of unencumbered receivables.
OMH’s net cash outflow from operating and investing activities totaled $567 million for the year ended December 31, 2024. At December 31, 2024, our scheduled interest payments for 2025 totaled $591 million and there were no scheduled principal payments for 2025 on our existing unsecured debt. As of December 31, 2024, we had $9.7 billion of unencumbered receivables.
OMH's Cash and Investments At December 31, 2023, we had $1.0 billion of cash and cash equivalents, which included $148 million of cash and cash equivalents held at our regulated insurance subsidiaries or for other operating activities that is unavailable for general corporate purposes.
OMH’s Cash and Investments At December 31, 2024, we had $458 million of cash and cash equivalents, which included $123 million of cash and cash equivalents held at our regulated insurance subsidiaries or for other operating activities that is unavailable for general corporate purposes.
To provide funding for the OMH dividend, the OMFC Board of Directors authorized a dividend in the amount of up to $121 million payable on or after February 21, 2024.
To provide funding for the OMH dividend, the OMFC Board of Directors authorized a dividend in the amount of up to $125 million payable on or after February 18, 2025.
Seasonality Our personal loan volume and demand is generally lowest during the first part of the year following the holiday season and as a result of tax refunds, and increases through the end of the year. Delinquencies follow the same trends, being generally lower during the first part of the year and rising throughout the remainder of the year.
Seasonality Our consumer loan volume and demand are generally lowest during the first quarter of the year following the holiday season and as a result of tax refunds, and then increases through the end of the year. Delinquencies follow similar trends, being generally lower during the first quarter of the year and rising throughout the remainder of the year.
During the year ended December 31, 2023, we repurchased $176 million of our unsecured notes.
During the year ended December 31, 2024, we repurchased $589 million of our unsecured notes.
As we pursue our key initiatives, we are confident in our ability to increase shareholder value and remain resilient and adaptable to navigate an ever-evolving economic, social, political, and regulatory landscape. 42 Table of Contents Results of Operations The results of OMFC are consolidated into the results of OMH.
With a robust balance sheet and a focus on our key initiatives, we are confident in our ability to increase shareholder value and remain resilient and adaptable to navigate an ever-evolving economic, social, political, and regulatory landscape. 41 Table of Contents Results of Operations The results of OMFC are consolidated into the results of OMH.
OMFC’s Issuances, Redemptions, and Repurchases of Unsecured Debt On June 22, 2023, OMFC issued a total of $500 million aggregate principal amount of 9.00% Senior Notes due 2029 under the Base Indenture, as supplemented by the Fifteenth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis.
OMFC’s Issuances, Redemptions, and Repurchases of Unsecured Debt On May 22, 2024, OMFC issued a total of $750 million aggregate principal amount of 7.500% Senior Notes due 2031 under the Base Indenture, as supplemented by the Seventeenth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis.
We believe our commitment to closely monitor the macroeconomic environment, retain disciplined underwriting, drive strategic growth initiatives, and maintain a robust balance sheet strengthens our ability to navigate challenges and seize opportunities.
We believe our commitment to closely monitor the macroeconomic environment, retain disciplined underwriting, drive strategic growth initiatives, and attract and retain top talent strengthens our ability to navigate challenges and seize opportunities.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities of Part II in this report. 51 Table of Contents Cash Dividend to OMH's Common Stockholders As of December 31, 2023, the dividend declarations for the current year by the Board were as follows: Declaration Date Record Date Payment Date Dividend Per Share Amount Paid (in millions) February 7, 2023 February 17, 2023 February 24, 2023 $ 1.00 $ 121 April 25, 2023 May 5, 2023 May 12, 2023 1.00 121 July 26, 2023 August 7, 2023 August 11, 2023 1.00 120 October 25, 2023 November 6, 2023 November 10, 2023 1.00 120 Total $ 4.00 $ 482 To provide funding for the dividend, OMFC paid dividends of $478 million to OMH during the year ended December 31, 2023.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities of Part II included in this report. 53 Table of Contents Cash Dividend to OMH’s Common Stockholders As of December 31, 2024, the dividend declarations for the current year by the Board were as follows: Declaration Date Record Date Payment Date Dividend Per Share Amount Paid (in millions) February 7, 2024 February 20, 2024 February 23, 2024 $ 1.00 $ 120 April 30, 2024 May 10, 2024 May 17, 2024 1.04 125 July 31, 2024 August 12, 2024 August 16, 2024 1.04 125 October 30, 2024 November 12, 2024 November 18, 2024 1.04 124 Total $ 4.12 $ 494 To provide funding for the dividend, OMFC paid dividends of $489 million to OMH during the year ended December 31, 2024.
OMH's reconciliations of income before income tax expense on a Segment Accounting Basis to C&I adjusted pretax income (non-GAAP) and C&I pretax capital generation (non-GAAP) were as follows: (dollars in millions) Years Ended December 31, 2023 2022 2021 Consumer and Insurance Income before income taxes - Segment Accounting Basis $ 845 $ 1,169 $ 1,788 Adjustments: Regulatory settlements 26 — — Net loss on repurchases and repayments of debt — 26 70 Other 3 11 60 Adjusted pretax income (non-GAAP) 874 1,206 1,918 Provision for finance receivable losses 1,721 1,399 587 Net charge-offs (1,536) (1,186) (768) Pretax capital generation (non-GAAP) $ 1,059 $ 1,419 $ 1,737 45 Table of Contents Segment Results The results of OMFC are consolidated into the results of OMH.
OMH’s reconciliations of income before income tax expense on a Segment Accounting Basis to C&I adjusted pretax income (non-GAAP) and C&I pretax capital generation (non-GAAP) were as follows: (dollars in millions) Years Ended December 31, 2024 2023 2022 Consumer and Insurance Income before income taxes - Segment Accounting Basis $ 707 $ 845 $ 1,169 Adjustments: Net loss on repurchases and repayments of debt 33 — 26 Restructuring charges 29 — 7 Acquisition-related transaction and integration expenses 9 — — Regulatory settlements — 26 — Other 4 3 4 Adjusted pretax income (non-GAAP) 782 874 1,206 Provision for finance receivable losses 1,981 1,721 1,399 Net charge-offs (1,849) (1,536) (1,186) Pretax capital generation (non-GAAP) $ 914 $ 1,059 $ 1,419 45 Table of Contents Segment Results The results of OMFC are consolidated into the results of OMH.
At December 31, 2023, we had approximately 2.4 million personal loans totaling $21.0 billion of net finance receivables, of which 50% were secured by titled property, compared to approximately 2.3 million personal loans totaling $19.9 billion of net finance receivables, of which 52% were secured by titled property at December 31, 2022.
At December 31, 2024, we had approximately 2.4 million personal loans totaling $20.8 billion of net finance receivables, of which 50% were secured by titled property, compared to approximately 2.4 million personal loans totaling $20.3 billion of net finance receivables, of which 48% were secured by titled property at December 31, 2023.
We include any late charges on loans that we have collected from customer payments in interest income. Interest Expense We track the interest expense incurred on our debt, along with amortization or accretion of premiums or discounts, and issuance costs, to monitor the components of our cost of funds.
We include any late charges on loans that we have collected from customer payments in interest income. Interest Expense We track the interest expense incurred on our debt to monitor the components of our cost of funds.
At December 31, 2023, we had $22.2 billion of managed receivables due from approximately 3.0 million customer accounts, compared to $20.8 billion of managed receivables due from approximately 2.6 million customer accounts at December 31, 2022.
At December 31, 2024, we had $24.7 billion of managed receivables due from approximately 3.4 million customer accounts, compared to $22.2 billion of managed receivables due from approximately 3.0 million customer accounts at December 31, 2023.
We believe we are well positioned to serve our customers and execute on our strategic priorities, including: • striving to be the lender of choice for nonprime consumers and improve their financial well-being; • continuing to grow our receivables through new products and distribution channels; • maintaining a rigorous underwriting standard with a goal of enhancing credit performance; • leveraging our scale and cost discipline across the Company to deliver improved operating leverage; and • maintaining a strong liquidity level with diversified funding sources.
We believe we are well positioned to serve our customers and execute on our strategic priorities, including: • striving to be the lender of choice for nonprime consumers and improve their financial well-being; • continuing to expand our product offerings and grow our receivables; • maintaining a rigorous focus on maximizing returns while minimizing credit risk; • leveraging our scale and cost discipline across the Company to deliver improved operating leverage; and • maintaining a strong liquidity level with diversified funding sources.
During the year ended December 31, 2023, we sold $585 million of gross finance receivables, compared to $720 million during the year ended December 31, 2022. See Note 4 of the Notes to the Consolidated Financial Statements included in this report for further information on the whole loan sale transactions.
During the year ended December 31, 2024, we sold a total of $542 million of gross finance receivables compared to $585 million during the year ended December 31, 2023. See Note 5 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for further information on the whole loan sale transactions.
The delinquency information for net finance receivables on a Segment Accounting Basis was as follows: Consumer and Insurance (dollars in millions) Personal Loans Credit Cards December 31, 2023 Current $ 19,725 $ 297 30-89 days past due 689 16 90+ days past due 605 17 Total net finance receivables $ 21,019 $ 330 Delinquency ratio 30-89 days past due 3.28 % 4.93 % 30+ days past due 6.16 % 9.96 % 90+ days past due 2.88 % 5.03 % December 31, 2022 Current $ 18,726 $ 93 30-89 days past due 610 6 90+ days past due 544 8 Total net finance receivables $ 19,880 $ 107 Delinquency ratio 30-89 days past due 3.07 % 5.90 % 30+ days past due 5.80 % 13.08 % 90+ days past due 2.74 % 7.18 % 48 Table of Contents ALLOWANCE FOR FINANCE RECEIVABLE LOSSES We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables.
The delinquency information for net finance receivables on a Segment Accounting Basis was as follows: Consumer and Insurance (dollars in millions) Consumer Loans Credit Cards December 31, 2024 Current $ 21,633 $ 558 30-89 days past due 743 37 90+ days past due 579 48 Total net finance receivables $ 22,955 $ 643 Delinquency ratio 30-89 days past due 3.24 % 5.78 % 30+ days past due 5.76 % 13.26 % 90+ days past due 2.52 % 7.47 % December 31, 2023 Current $ 19,725 $ 297 30-89 days past due 689 16 90+ days past due 605 17 Total net finance receivables $ 21,019 $ 330 Delinquency ratio 30-89 days past due 3.28 % 4.93 % 30+ days past due 6.16 % 9.96 % 90+ days past due 2.88 % 5.03 % 49 Table of Contents ALLOWANCE FOR FINANCE RECEIVABLE LOSSES We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables.
On December 13, 2023, OMFC issued a total of $700 million aggregate principal amount of 7.875% Senior Notes due 2030 under the Base Indenture, as supplemented by the Sixteenth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis. From time to time we may purchase portions of our unsecured indebtedness through the open market.
On November 4, 2024, OMFC issued a total of $900 million aggregate principal amount of 6.625% Senior Notes due 2029 under the Base Indenture, as supplemented by the Nineteenth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis. From time to time we may purchase portions of our unsecured indebtedness through the open market.
Other attributes in the model include collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes.
Other attributes in the model include loan modification status, collateral mix, and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term.
On February 7, 2024, OMH declared a dividend of $1.00 per share payable on February 23, 2024 to record holders of OMH's common stock as of the close of business on February 20, 2024.
On January 31, 2025, OMH declared a dividend of $1.04 per share payable on February 20, 2025 to record holders of OMH’s common stock as of the close of business on February 12, 2025.
This measure represents C&I adjusted pretax income as discussed above and excludes the change in our C&I allowance for finance receivable losses in the period while still considering the C&I net charge-offs incurred during the period.
Management also uses C&I pretax capital generation, a non-GAAP financial measure, as a key performance measure of our segment. This measure represents C&I adjusted pretax income as discussed above and excludes the change in our C&I allowance for finance receivable losses in the period while still considering the C&I net charge-offs incurred during the period.
Net cash used for financing activities of $326 million and $1.8 billion for the years ended December 31, 2022 and 2021, respectively, were primarily due to repayments and repurchases of long-term debt, cash dividends paid, and the cash paid to repurchase common stock, partially offset by the issuance and borrowings of long-term debt.
Net cash used for financing activities of $326 million was due to repayments and repurchases of long-term debt, cash dividends paid, and the cash paid to repurchase common stock, partially offset by the issuance and borrowings of long-term debt.
Stock Repurchased During the year ended December 31, 2023, OMH repurchased 1,651,717 shares of its common stock through its stock repurchase program for an aggregate total of $65 million, including commissions and fees. As of December 31, 2023, OMH held a total of 15,383,804 shares of treasury stock.
Stock Repurchased During the year ended December 31, 2024, OMH repurchased 755,274 shares of its common stock through its stock repurchase program for an aggregate total of $35 million, including commissions and fees. As of December 31, 2024, OMH held a total of 16,060,384 shares of treasury stock.
Finance Receivables Originations and Purchase Volume Because volume and portfolio size determine the magnitude of the impact of each of the above factors on our earnings, we also closely monitor originations, purchase volume, and annual percentage rate. 40 Table of Contents Recent Developments and Outlook RECENT DEVELOPMENTS Acquisition of Foursight Capital LLC On November 21, 2023, we announced that we have entered into a definitive agreement to acquire Foursight Capital LLC (“Foursight”), a wholly owned subsidiary of Jefferies Financial Group, Inc. for a purchase price of $115 million in cash.
Finance Receivables Originations and Purchase Volume Because volume and portfolio size determine the magnitude of the impact of each of the above factors on our earnings, we also closely monitor originations, purchase volume, and annual percentage rate. 39 Table of Contents Recent Developments and Outlook RECENT DEVELOPMENTS Acquisition of Foursight Capital LLC On April 1, 2024, we completed our previously announced acquisition of Foursight Capital LLC (“Foursight”), a wholly owned subsidiary of Jefferies Financial Group, Inc.
The allowance for finance receivable losses as a percentage of net finance receivables increased slightly from the prior year period primarily due to a weaker macroeconomic outlook and portfolio mix.
The allowance for finance receivable losses as a percentage of net finance receivables decreased from the prior year period primarily due to an improvement in credit performance and change in the portfolio mix.
We also service personal loans for our whole loan sale partners. • Credit Cards — BrightWay and BrightWay+ credit cards originate through a third-party bank partner from which we purchase the receivable balances. The credit cards are offered across our branch network, through direct mail, and through our digital affiliates.
We also service auto finance loans for our whole loan sale partners and loans originated by third parties. • Credit Cards — BrightWay and BrightWay+ credit cards originate through a third-party bank partner from which we purchase the receivable balances.
We define net credit losses as gross charge-offs minus recoveries in the portfolio. Additionally, because delinquencies are an early indicator of future net credit losses, we analyze delinquency trends, adjusting for seasonality, to determine whether our loans are performing in line with our original estimates.
Additionally, because delinquencies are an early indicator of future net credit losses, we analyze delinquency trends and consider seasonality, to determine whether our loans are performing in line with our original estimates. We also monitor recovery rates because of their contribution to the reduction in the severity of our charge-offs.
We consider key economic factors, most notably unemployment rates, to incorporate into our estimate of the allowance for finance receivable losses. Our macroeconomic forecast considers various scenarios of economic projections from industry leading forecast providers and extends over our reasonable and supportable forecast period, after which we revert to a historical average.
Our macroeconomic forecast considers various scenarios of economic projections from industry leading forecast providers and extends over our reasonable and supportable forecast period, after which we revert to a historical average.
We expect interest expense to fluctuate based on changes in the secured versus unsecured mix of our debt, time to maturity, interest rates, and utilization of revolving conduit facilities.
We expect interest expense to fluctuate based on changes in the secured versus unsecured mix of our debt, time to maturity, interest rates, and utilization of revolving conduit facilities and credit card revolving variable funding note (“VFN”) facilities. Net Credit Losses We define net credit losses as gross charge-offs minus recoveries in the portfolio.
OMFC’s Unsecured Corporate Revolver At December 31, 2023, the borrowing capacity of our corporate revolver was $1.3 billion, and no amounts were drawn. 50 Table of Contents Securitizations and Borrowings from Revolving Conduit Facilities During the year ended December 31, 2023, we completed three personal loan securitizations (ODART 2023-1, OMFIT 2023-1, OMFIT 2023-2, see “Securitized Borrowings” below) and redeemed one personal loan securitization (OMFIT 2020-1).
OMFC’s Unsecured Corporate Revolver At December 31, 2024, the borrowing capacity of our corporate revolver was $1.1 billion. 52 Table of Contents Securitizations, Revolving Conduit Facilities, and Credit Card Revolving VFN Facilities During the year ended December 31, 2024, we completed one new consumer loan securitization (OMFIT 2024-1, see “Securitized Borrowings” below) and redeemed one consumer loan securitization (FCRT 2021-1, see “Securitized Borrowings” below).
See Notes 3, 4, and 5 of the Notes to the Consolidated Financial Statements in Part II - Item 8 in this report for additional information on the adoption of ASU 2022-02.
See Notes 3, 4, and 5 of the Notes to the Consolidated Financial Statements in Part II - Item 8 of OMH’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 13, 2024 for additional information on the adoption of ASU 2022-02.
Securitization Transactions Completed - ODART 2023-1, OMFIT 2023-1, and OMFIT 2023-2 For information regarding the issuances of our secured debt, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.
Securitization Transaction Completed - OMFIT 2024-1 For information regarding the issuances of our secured debt, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report. Appointments of Chief Operating Officer (“COO”) and Chief Financial Officer (“CFO”) On February 13, 2024, the Company announced the appointments of Micah R.
Changes in our allowance for finance receivable losses were as follows: (dollars in millions) Consumer and Insurance Segment to GAAP Adjustment Consolidated Total Personal Loans Credit Cards Year Ended December 31, 2023 Balance at beginning of period $ 2,294 $ 21 $ (4) $ 2,311 Impact of adoption of ASU 2022-02 (a) (20) — 4 (16) Provision for finance receivable losses 1,651 70 — 1,721 Charge-offs (1,768) (27) — (1,795) Recoveries 258 1 — 259 Balance at end of period $ 2,415 $ 65 $ — $ 2,480 Allowance ratio 11.49 % 19.61 % (b) 11.62 % Year Ended December 31, 2022 Balance at beginning of period $ 2,097 $ 5 $ (7) $ 2,095 Provision for finance receivable losses 1,376 23 3 1,402 Charge-offs (1,431) (7) — (1,438) Recoveries 252 — — 252 Balance at end of period $ 2,294 $ 21 $ (4) $ 2,311 Allowance ratio 11.54 % 19.12 % (b) 11.56 % Year Ended December 31, 2021 Balance at beginning of period $ 2,283 $ — $ (14) $ 2,269 Provision for finance receivable losses 582 5 6 593 Charge-offs (990) — 1 (989) Recoveries 222 — — 222 Balance at end of period $ 2,097 $ 5 $ (7) $ 2,095 Allowance ratio 10.93 % 19.91 % (b) 10.90 % (a) As a result of the adoption of ASU 2022-02, we recorded a one-time adjustment to the allowance for finance receivable losses.
Changes in our allowance for finance receivable losses were as follows: (dollars in millions) Consumer and Insurance Segment to GAAP Adjustment Consolidated Total Consumer Loans Credit Cards Year Ended December 31, 2024 Balance at beginning of period $ 2,415 $ 65 $ — $ 2,480 Provision for finance receivable losses 1,832 149 59 2,040 Charge-offs (2,080) (78) 3 (2,155) Recoveries 307 2 — 309 Other (a) 98 — (67) 31 Balance at end of period $ 2,572 $ 138 $ (5) $ 2,705 Net finance receivables $ 22,955 $ 643 $ (44) $ 23,554 Allowance ratio 11.20 % 21.44 % N/A 11.48 % Year Ended December 31, 2023 Balance at beginning of period $ 2,294 $ 21 $ (4) $ 2,311 Impact of adoption of ASU 2022-02 (b) (20) — 4 (16) Provision for finance receivable losses 1,651 70 — 1,721 Charge-offs (1,768) (27) — (1,795) Recoveries 258 1 — 259 Balance at end of period $ 2,415 $ 65 $ — $ 2,480 Net finance receivables $ 21,019 $ 330 $ — $ 21,349 Allowance ratio 11.49 % 19.61 % N/A 11.62 % Year Ended December 31, 2022 Balance at beginning of period $ 2,097 $ 5 $ (7) $ 2,095 Provision for finance receivable losses 1,376 23 3 1,402 Charge-offs (1,431) (7) — (1,438) Recoveries 252 — — 252 Balance at end of period $ 2,294 $ 21 $ (4) $ 2,311 Net finance receivables $ 19,880 $ 107 $ (1) $ 19,986 Allowance ratio 11.54 % 19.12 % N/A 11.56 % (a) Represents allowance for finance receivable losses recognized on loans acquired in the Foursight Acquisition.
Net cash provided by operations of $2.2 billion for the year ended December 31, 2021 reflected net income of $1.3 billion, the impact of non-cash items, and an unfavorable change in working capital of $48 million.
LIQUIDITY OMH’s Operating Activities Net cash provided by operations of $2.7 billion for the year ended December 31, 2024 reflected net income of $509 million, the impact of non-cash items including provision for finance receivable losses of $2.0 billion, and an unfavorable change in working capital of $125 million.
(dollars in millions, except per share amounts) At or for the Years Ended December 31, 2023 2022 2021 Interest income $ 4,564 $ 4,435 $ 4,364 Interest expense 1,019 892 937 Provision for finance receivable losses 1,721 1,402 593 Net interest income after provision for finance receivable losses 1,824 2,141 2,834 Other revenues 735 629 531 Other expenses 1,719 1,615 1,624 Income before income taxes 840 1,155 1,741 Income taxes 199 283 427 Net income $ 641 $ 872 $ 1,314 Share Data: Earnings per share: Diluted $ 5.32 $ 7.01 $ 9.88 Selected Financial Statistics * Total finance receivables: Net finance receivables $ 21,349 $ 19,986 $ 19,212 Average net receivables $ 20,527 $ 19,440 $ 18,281 Gross charge-off ratio 8.74 % 7.40 % 5.41 % Recovery ratio (1.26) % (1.29) % (1.21) % Net charge-off ratio 7.48 % 6.10 % 4.20 % Personal loans: Net finance receivables $ 21,019 $ 19,879 $ 19,187 Yield 22.20 % 22.78 % 23.84 % Origination volume $ 12,851 $ 13,879 $ 13,825 Number of accounts 2,415,058 2,334,097 2,336,845 Number of accounts originated 1,258,813 1,365,989 1,388,123 Net charge-off ratio 7.42 % 6.09 % 4.20 % 30-89 Delinquency ratio 3.28 % 3.07 % 2.43 % Credit cards: Net finance receivables $ 330 $ 107 $ 25 Purchase volume $ 442 $ 172 $ 26 Number of open accounts 430,784 135,335 65,513 Debt balances: Long-term debt balance $ 19,813 $ 18,281 $ 17,750 Average daily debt balance $ 19,047 $ 17,854 $ 17,441 * See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios. 43 Table of Contents Comparison of Consolidated Results for 2023 and 2022 Interest income increased $129 million or 3% in 2023 when compared to 2022 due to growth in average net receivables, partially offset by lower yield.
(dollars in millions, except per share amounts) At or for the Years Ended December 31, 2024 2023 2022 Interest income $ 4,993 $ 4,564 $ 4,435 Interest expense 1,185 1,019 892 Provision for finance receivable losses 2,040 1,721 1,402 Net interest income after provision for finance receivable losses 1,768 1,824 2,141 Other revenues 695 735 629 Other expenses 1,796 1,719 1,615 Income before income taxes 667 840 1,155 Income taxes 158 199 283 Net income $ 509 $ 641 $ 872 Share Data: Earnings per share: Diluted $ 4.24 $ 5.32 $ 7.01 Selected Financial Statistics (a) Total finance receivables: Net finance receivables $ 23,554 $ 21,349 $ 19,986 Average net receivables $ 22,395 $ 20,527 $ 19,440 Gross charge-off ratio (b) 9.49 % 8.74 % 7.40 % Recovery ratio (1.38) % (1.26) % (1.29) % Net charge-off ratio (b) 8.12 % 7.48 % 6.10 % 42 Table of Contents (dollars in millions, except per share amounts) At or for the Years Ended December 31, 2024 2023 2022 Selected Financial Statistics, continued (a) Personal loans: Net finance receivables $ 20,833 $ 20,274 $ 19,497 Origination volume $ 12,246 $ 12,296 $ 13,525 Number of accounts 2,375,138 2,361,026 2,305,676 Number of accounts originated 1,171,271 1,224,362 1,342,276 Auto finance: Net finance receivables $ 2,078 $ 745 $ 382 Origination volume $ 1,075 $ 555 $ 354 Number of accounts 126,518 54,032 28,421 Number of accounts originated 53,222 34,451 23,713 Consumer loans: Net finance receivables $ 22,911 $ 21,019 $ 19,879 Yield 22.23 % 22.20 % 22.78 % Origination volume $ 13,321 $ 12,851 $ 13,879 Number of accounts 2,501,656 2,415,058 2,334,097 Number of accounts originated 1,224,493 1,258,813 1,365,989 Net charge-off ratio (b) 7.95 % 7.42 % 6.09 % 30-89 Delinquency ratio 3.23 % 3.28 % 3.07 % Credit cards: Net finance receivables $ 643 $ 330 $ 107 Purchase volume $ 892 $ 442 $ 172 Number of open accounts 782,932 430,784 135,335 Debt balances: Long-term debt balance $ 21,438 $ 19,813 $ 18,281 Average daily debt balance $ 20,748 $ 19,047 $ 17,854 (a) See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.
Our personal loans, credit cards, and other products help customers meet everyday needs and take steps to improve their financial well-being. OUR PRODUCTS Our product offerings include: • Personal Loans — We offer personal loans through our branch network, central operations, auto dealership network, and our website, www.onemainfinancial.com, to customers who need timely access to cash.
OUR PRODUCTS Our product offerings include: • Personal Loans — We offer personal loans through our branch network, central operations, digital affiliates, and our website, www.onemainfinancial.com, to customers who need timely access to cash.
Net cash used for investing activities of $2.1 billion for both the years ended December 31, 2022 and 2021 was primarily due to net principal originations and purchases of finance receivables and purchases of available-for-sale and other securities, partially offset by the 52 Table of Contents proceeds from sales of finance receivables and calls, sales, and maturities of available-for-sale and other securities.
Net cash used for investing activities of $2.9 billion and $2.1 billion for the years ended December 31, 2023 and 2022, respectively, was due to net principal originations and purchases of finance receivables and purchases of available-for-sale and other securities, partially offset by the proceeds from sales of finance receivables and calls, sales, and maturities of available-for-sale and other securities. 54 Table of Contents OMH’s Financing Activities Net cash provided by financing activities of $161 million for the year ended December 31, 2024 was due to the issuances and borrowings of long-term debt, partially offset by repayments and repurchases of long-term debt, cash dividends paid, and common stock repurchased.
Interest expense increased $129 million or 15% in 2023 when compared to 2022 due to a higher average cost of funds and an increase in average debt as we continue to grow the business. Provision for finance receivable losses increased $322 million or 23% in 2023 when compared to 2022 driven by higher net charge-offs.
Interest expense increased $166 million or 16% in 2024 when compared to 2023 due to an increase in average debt to support our receivables growth and a higher average cost of funds. Provision for finance receivable losses increased $260 million or 15% in 2024 when compared to 2023 related to growth in our receivables and higher net charge-offs.
(b) Inclusive of in-process replenishments of collateral for securitized borrowings in a revolving status as of December 31, 2023. 54 Table of Contents Revolving Conduit Facilities In addition to the structured financings, we had access to 16 revolving conduit facilities with a total borrowing capacity of $6.4 billion as of December 31, 2023: (dollars in millions) Advance Maximum Balance Amount Drawn OneMain Financial Funding VII, LLC $ 600 $ — OneMain Financial Auto Funding I, LLC 550 — Seine River Funding, LLC 550 — Hudson River Funding, LLC 500 — OneMain Financial Funding XI, LLC 425 — OneMain Financial Funding VIII, LLC 400 — River Thames Funding, LLC 400 — OneMain Financial Funding X, LLC 400 — OneMain Financial Funding XII, LLC 400 — Chicago River Funding, LLC 375 — Mystic River Funding, LLC 350 — Thayer Brook Funding, LLC 350 1 Columbia River Funding, LLC 350 — Hubbard River Funding, LLC 250 — New River Funding Trust 250 — St.
See “Liquidity and Capital Resources - Sources and Uses of Funds - Securitizations, Revolving Conduit Facilities, and Credit Card Revolving VFN Facilities” above for information on the securitization transaction completed subsequent to December 31, 2024. 56 Table of Contents Revolving Conduit Facilities We had access to 17 revolving conduit facilities with a total borrowing capacity of $6.0 billion as of December 31, 2024: (dollars in millions) Advance Maximum Balance Amount Drawn OneMain Financial Funding VII, LLC $ 600 $ — OneMain Financial Auto Funding I, LLC 550 — Hudson River Funding, LLC 500 — OneMain Financial Funding XI, LLC 425 — OneMain Financial Funding VIII, LLC 400 — River Thames Funding, LLC 400 — OneMain Financial Funding X, LLC 400 — OneMain Financial Funding XII, LLC 400 — Mystic River Funding, LLC 350 — Thayer Brook Funding, LLC 350 1 Columbia River Funding, LLC 350 — Hubbard River Funding, LLC 250 — New River Funding Trust 250 — St.
As of December 31, 2023, our structured financings consisted of the following: (dollars in millions) Issue Amount (a) Initial Collateral Balance Current Note Amounts Outstanding (a) Current Collateral Balance (b) Current Weighted Average Interest Rate Original Revolving Period OMFIT 2018-2 $ 368 $ 381 $ 202 $ 231 4.09 % 5 years OMFIT 2019-2 900 947 900 995 3.30 % 7 years OMFIT 2019-A 789 892 750 892 3.78 % 7 years OMFIT 2020-2 1,000 1,053 1,000 1,053 2.03 % 5 years OMFIT 2021-1 850 904 850 904 2.82 % 5 years OMFIT 2022-S1 600 652 600 652 4.31 % 3 years OMFIT 2022-2 1,000 1,099 1,000 1,099 5.17 % 2 years OMFIT 2022-3 979 1,090 796 1,090 6.00 % 2 years OMFIT 2023-1 825 920 825 920 5.82 % 5 years OMFIT 2023-2 1,400 1,566 1,400 1,566 6.45 % 3 years ODART 2019-1 737 750 700 750 3.79 % 5 years ODART 2021-1 1,000 1,053 902 917 0.99 % 2 years ODART 2022-1 600 632 600 632 5.10 % 2 years ODART 2023-1 750 792 750 792 5.63 % 3 years Total securitizations $ 11,798 $ 12,731 $ 11,275 $ 12,493 (a) Issue Amount includes the retained interest amounts as applicable and the Current Note Amounts Outstanding balances reflect pay-downs subsequent to note issuance and exclude retained interest amounts.
As of December 31, 2024, our structured financings consisted of the following: (dollars in millions) Issue Amount (a) Initial Collateral Balance Current Note Amounts Outstanding (a) Current Collateral Balance (b) Current Weighted Average Interest Rate Original Revolving Period OMFIT 2018-2 $ 368 $ 381 $ 80 $ 108 4.77 % 5 years OMFIT 2019-2 900 947 900 995 3.30 % 7 years OMFIT 2019-A 789 892 750 892 3.78 % 7 years OMFIT 2020-2 1,000 1,053 1,000 1,053 2.03 % 5 years OMFIT 2021-1 850 904 850 904 2.64 % 5 years OMFIT 2022-S1 600 652 600 652 4.31 % 3 years OMFIT 2022-2 1,000 1,099 868 917 5.22 % 2 years OMFIT 2022-3 979 1,090 796 1,059 6.00 % 2 years OMFIT 2023-1 825 920 825 920 5.82 % 5 years OMFIT 2023-2 1,400 1,566 1,400 1,566 6.21 % 3 years OMFIT 2024-1 1,100 1,222 1,100 1,222 5.99 % 7 years ODART 2019-1 737 750 394 436 3.92 % 5 years ODART 2021-1 1,000 1,053 453 465 1.11 % 2 years ODART 2022-1 600 632 430 437 5.05 % 2 years ODART 2023-1 750 792 750 792 5.63 % 3 years FCRT 2021-2 (c) 280 281 48 47 2.30 % N/A FCRT 2022-1 (c) 293 294 72 70 2.99 % N/A FCRT 2022-2 (c) 215 233 57 75 5.91 % N/A FCRT 2023-1 (c) 182 199 77 94 5.89 % N/A FCRT 2023-2 (c) 200 208 111 119 6.48 % N/A FCRT 2024-1 (c) 210 214 142 148 6.08 % N/A Total securitizations $ 14,278 $ 15,382 $ 11,703 $ 12,971 (a) Issue Amount includes the retained interest amounts as applicable and the Current Note Amounts Outstanding balances reflect pay-downs subsequent to note issuance and exclude retained interest amounts.
We also monitor recovery rates because of their contribution to the reduction in the severity of our charge-offs. Operating Expenses We assess our operational efficiency using various metrics and conduct extensive analysis to determine whether fluctuations in cost and expense levels indicate operational trends that need to be addressed.
Operating Expenses We assess our operational efficiency using various metrics and conduct extensive analysis to determine whether fluctuations in cost and expense levels indicate operational trends that need to be addressed. Our operating expense analysis also includes a review of origination and servicing costs to assist us in managing overall profitability.
On November 14, 2023, OMFC issued a total of $400 million aggregate principal amount of 9.00% Senior Notes due 2029 in an add-on to the 9.00% Senior Notes due 2029 under the Base Indenture, as supplemented by the Fifteenth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis.
On August 19, 2024, OMFC issued a Social Bond offering for a total of $750 million aggregate principal amount of 7.125% Senior Notes due 2031 under the Base Indenture, as supplemented by the Eighteenth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis.
C&I adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes regulatory settlements, net gain or loss resulting from repurchases and repayments of debt, and other items and strategic activities, which include direct costs associated with COVID-19, restructuring charges, and the expense associated with cash-settled stock-based awards.
C&I adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes net gain or loss resulting from repurchases and repayments of debt, restructuring charges, acquisition-related transaction and integration expenses, regulatory settlements, and other items and strategic activities. Management believes C&I adjusted pretax income (loss) is useful in assessing the profitability of our segment.
These patterns are then applied to the current portfolio to obtain an estimate of future losses. 56 Table of Contents Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors, such as recent portfolio, industry, and other economic trends, and experience in the consumer finance industry.
Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. 58 Table of Contents Management exercises its judgment when determining the amount of allowance for finance receivable losses.
See Note 10 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in this report for further information on these state restrictions and the dividends paid by our insurance subsidiaries from 2021 through 2023. 53 Table of Contents OUR DEBT AGREEMENTS The debt agreements which OMFC and its subsidiaries are a party to include customary terms and conditions, including covenants and representations and warranties.
See Note 11 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in this report for further information on these state restrictions and the dividends paid by our insurance subsidiaries from 2022 to 2024.
Our experienced management team remains focused on maintaining a strong balance sheet with a long liquidity runway and adequate capital while maintaining a conservative and disciplined underwriting model.
We incorporate updates to our macroeconomic assumptions, as necessary, which could lead to adjustments in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses. Our experienced management team remains focused on maintaining a strong balance sheet with a long liquidity runway and adequate capital while maintaining a conservative and disciplined underwriting model.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe estimated impact of an immediate and sustained 100 basis point (“bps”) increase or decrease in interest rates on the fair values of our interest rate-sensitive financial instruments is shown below.
Biggest changeWe assumed that interest-rate-sensitive assets and liabilities described below were subject to a hypothetical, immediate 100 basis point (“bps”) increase or decrease in interest rates relative to the forecast. Our exposure to interest rate risk is primarily through our funding activities.
It also assumes an immediate change in interest rates, without regard to the impact of certain business decisions or initiatives that we would likely undertake to mitigate or eliminate some or all of the adverse effects of the modeled scenarios. 58 Table of Contents
It also assumes an immediate change in interest rates, without regard to the impact of certain business decisions or initiatives that we would likely undertake to mitigate or eliminate some or all of the adverse effects of the modeled scenarios.
This change would not materially impact our operations due to the composition of our balance sheet, including largely fixed-rate loans along with the tenor and fixed-rate nature of our debt. Our long liquidity runway and staggered debt maturities further reduce any immediate impacts of changes in market interest rates.
The composition of our balance sheet, including largely fixed-rate loans along with the tenor and fixed-rate nature of our debt, considerably mitigates our interest rate risk. Our long liquidity runway and staggered debt maturities further reduce any immediate impacts of changes in market interest rates.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Market risk refers to the risk to the Company’s financial position resulting from a change in market factors, including interest rates, foreign exchange rates, equity, and commodity prices. The fair values of certain assets and liabilities are sensitive to changes in market interest rates.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Market risk refers to the risk to the Company’s operations or financial position resulting from a change in market factors, including interest rates, foreign exchange rates, equity, and commodity prices.
While these changes in fair values provide a measure of interest rate sensitivity, they do not represent our expectations about the impact of interest rate changes on our financial results. This analysis is also based on our exposure at a particular point in time and incorporates numerous assumptions and estimates.
While these changes in net interest income provide a measure of interest rate sensitivity, they do not represent our expectations about the impact of interest rate changes on our financial results. This analysis is based on our corporate forecast and incorporates numerous assumptions and estimates as described above.
For further discussion on the impact of market factors, see “Risk Factors” in Part I - Item 1A. of this report. We derived the changes in fair values by modeling estimated cash flows of certain assets and liabilities.
For further discussion on the impact of market factors, see “Risk Factors” in Part I - Item 1A. of this report. Sensitivity Analysis To better reflect the impact of rate changes on financial performance, we have transitioned our sensitivity analysis from a fair-value based approach to an earnings-based approach.
Removed
The impact of changes in interest rates would be reduced by the fact that increases (decreases) in fair values of assets would be partially offset by corresponding changes in fair values of liabilities.
Added
This revised approach estimates net interest income sensitivity to parallel interest rate changes based on current and projected funding levels, providing a view of how interest rate changes may affect earnings.
Removed
The estimated increases (decreases) in fair values of interest rate-sensitive financial instruments were as follows: December 31, 2023 2022 (dollars in millions) +100 bps -100 bps +100 bps -100 bps Assets Net finance receivables, less allowance for finance receivable losses (a) $ (277) $ 285 $ (212) $ 217 Fixed-maturity investment securities (b) (64) 67 (70) 75 Liabilities Long-term debt (b) $ (518) $ 529 $ (461) $ 484 (a) We did not adjust the estimated cash flows for any future credit originations.
Added
To measure the sensitivity of net interest income to interest rate changes, we projected net interest income over the following 12 months, including forecasted business growth, anticipated funding needs, and expected interest rates.
Removed
(b) We adjusted the estimated cash flows to reflect expected prepayment and calls, but did not consider any new investment purchases or debt issuances. We did not enter into interest rate-sensitive financial instruments for trading or speculative purposes. Readers should exercise care in drawing conclusions based on the above analysis.
Added
Our finance receivables consist of fixed-rate consumer loans and credit cards, and are not viewed to be interest rate sensitive. As such, we have excluded interest income from this analysis. Additionally, the majority of our debt is fixed-rate and therefore not subject to significant interest rate risk.
Added
This analysis focuses on our interest-rate-sensitive liabilities, which include variable-rate funding and fixed-rate liabilities maturing and are assumed to be replaced with a market-based rate in the next 12 months. The sensitivity analysis also assumes parallel yield curve shifts, funding needs based on forecasts, and no significant changes in our balance sheet composition or risk strategies.
Added
The following table presents the approximate net interest income impacts forecasted over the next 12 months from an immediate and parallel change in interest rates: December 31, 2024 2023 (dollars in millions) +100 bps -100 bps +100 bps -100 bps Net interest income $ (35) $ 35 $ (32) $ 32 We did not enter into interest rate-sensitive financial instruments for trading or speculative purposes.
Added
Change from Prior Methodology: Previously we disclosed the potential changes in the fair values of receivables, investments and debt resulting from hypothetical interest rate changes. While this approach provided insight into balance sheet valuation impacts, it did not reflect the earnings exposure to interest rate risk, which is through changes in funding costs and the effects to earnings.
Added
The earnings-based analysis focuses on net interest income, a key component of our business performance. This change provides readers more meaningful insight into how interest rates could impact our results of operations, highlights the strength of our balance sheet and funding program, and provides relevant and useful disclosures.
Added
This revised approach enhances transparency, aligns with industry practices, and offers a clearer understanding of our exposure to interest rate risk and its potential impact on financial performance. Readers should exercise care in drawing conclusions based on the above analysis.
Added
Additionally, the analysis does not reflect the potential impacts of macroeconomic changes or variations in the competitive environment. 60 Table of Contents We have limited exposure to other market risks, including foreign exchange rates, equity prices, and commodity prices. These risks are not considered material to our operations or financial position and are therefore not included in this analysis.
Added
Should such exposures become material, we will disclose their potential impacts in future filings.

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