(State of incorporation) | (I.R.S. Employer Identification No.) |
OneMain Holdings, Inc.: | ||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
OneMain Finance Corporation: None |
OneMain Holdings, Inc.: | |||||||||||||||||||||||||||||
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||
OneMain Finance Corporation: | |||||||||||||||||||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | ☑ | Smaller reporting company | Emerging growth company |
Term or Abbreviation | Definition | |||||||
30-89 Delinquency ratio | net finance receivables 30-89 days past due as a percentage of net finance receivables | |||||||
ABS | asset-backed securities | |||||||
Adjusted pretax income (loss) | a non-GAAP financial measure used by management as a key performance measure of our segment | |||||||
AETR | annual effective tax rate | |||||||
AHL | American Health and Life Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC | |||||||
Annual Report | the Annual Report on Form 10-K of OMH and OMFC for the fiscal year ended December 31, 2022, filed with the SEC on February 10, 2023 | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
ASU 2018-12 | The accounting standard issued by FASB in August of 2018, Financial Services-Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts | |||||||
ASU 2022-02 | The accounting standard issued by FASB in March of 2022, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures | |||||||
Average daily debt balance | average of debt for each day in the period | |||||||
Average net receivables | average of net finance receivables for each day in the period | |||||||
Base Indenture | indenture, dated as of December 3, 2014, by and between OMFC and Wilmington Trust, National Association, as trustee, and guaranteed by OMH | |||||||
Board | the OMH Board of Directors | |||||||
C&I | Consumer and Insurance | |||||||
CDO | collateralized debt obligations | |||||||
CFPB | Consumer Financial Protection Bureau | |||||||
CMBS | commercial mortgage-backed securities | |||||||
Exchange Act | Securities Exchange Act of 1934, as amended | |||||||
FASB | Financial Accounting Standards Board | |||||||
GAAP | generally accepted accounting principles in the United States of America | |||||||
GAP | guaranteed asset protection | |||||||
Gross charge-off ratio | annualized gross charge-offs as a percentage of average net receivables | |||||||
Gross finance receivables | the unpaid principal balance of our personal loans. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the principal balance and billed interest and fees | |||||||
Indenture | the Base Indenture, together with all subsequent Supplemental Indentures | |||||||
Junior Subordinated Debenture | $350 million aggregate principal amount of 60-year junior subordinated debt issued by OMFC under an indenture dated January 22, 2007, by and between OMFC and Deutsche Bank Trust Company, as trustee, and guaranteed by OMH | |||||||
Managed receivables | consist of our C&I net finance receivables and finance receivables serviced for our whole loan sale partners | |||||||
Modified finance receivables | finance receivable contractually modified, subsequent to the adoption of ASU 2022-02 on January 1, 2023, as a result of the borrower’s financial difficulties | |||||||
Moody’s | Moody’s Investors Service, Inc. | |||||||
Net charge-off ratio | annualized net charge-offs as a percentage of average net receivables | |||||||
Net interest income | interest income less interest expense | |||||||
NYDFS | New York Department of Financial Services | |||||||
ODART | OneMain Direct Auto Receivables Trust | |||||||
OMFC | OneMain Finance Corporation |
Term or Abbreviation | Definition | |||||||
OMFH | OneMain Financial Holdings, LLC | |||||||
OMFIT | OneMain Financial Issuance Trust | |||||||
OMH | OneMain Holdings, Inc. | |||||||
OneMain | OneMain Holdings, Inc. and OneMain Finance Corporation, collectively with their subsidiaries | |||||||
Open accounts | consist of credit card accounts that are not charged-off or closed accounts with a zero balance as of period end | |||||||
Other securities | primarily consist of equity securities and those securities for which the fair value option was elected. Other securities recognize unrealized gains and losses in investment revenues | |||||||
Pretax capital generation | a non-GAAP financial measure used by management as a key performance measure of our segment, defined as C&I adjusted pretax income (loss) excluding the change in C&I allowance for finance receivable losses | |||||||
Private Secured Term Funding | $350 million aggregate principal amount of debt collateralized by our personal loans issued on April 25, 2022 | |||||||
Purchase volume | consists of credit card purchase transactions in the period, including cash advances, net of returns | |||||||
Recovery ratio | annualized recoveries on net charge-offs as a percentage of average net receivables | |||||||
RMBS | residential mortgage-backed securities | |||||||
SEC | U.S. Securities and Exchange Commission | |||||||
Securities Act | Securities Act of 1933, as amended | |||||||
Segment Accounting Basis | a basis used to report the operating results of our C&I segment and our Other components, which reflects our allocation methodologies for certain costs and excludes the impact of applying purchase accounting | |||||||
SpringCastle Portfolio | loans the Company previously owned and now services on behalf of a third party | |||||||
Supplemental Indentures | collectively, the following supplements to the Base Indenture: Fifth Supplemental Indenture, dated as of March 12, 2018; Sixth Supplemental Indenture, dated as of May 11, 2018; Seventh Supplemental Indenture, dated as of February 22, 2019; Eighth Supplemental Indenture, dated as of May 9, 2019; Ninth Supplemental Indenture, dated as of November 7, 2019; Eleventh Supplemental Indenture, dated as of December 17, 2020; Twelfth Supplemental Indenture, dated as of June 22, 2021; Thirteenth Supplemental Indenture, dated as of August 11, 2021; Fourteenth Supplemental Indenture, dated June 20, 2023; and Fifteenth Supplemental Indenture, dated June 22, 2023 | |||||||
Tax Act | Public Law 115-97 amending the Internal Revenue Code of 1986 | |||||||
TDR finance receivables | troubled debt restructured finance receivables. Debt restructuring, prior to the adoption of ASU 2022-02 on January 1, 2023, in which a concession was granted to the borrower as a result of economic or legal reasons related to the borrower’s financial difficulties | |||||||
Triton | Triton Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC | |||||||
Unearned finance charges | the amount of interest that is capitalized at time of origination on a precompute loan that will be earned over the remaining contractual life of the loan | |||||||
Unencumbered loans | unencumbered gross finance receivables excluding credit cards | |||||||
Unsecured corporate revolver | unsecured revolver with a maximum borrowing capacity of $1.25 billion, payable and due on October 25, 2026 | |||||||
Unsecured Notes | the notes, on a senior unsecured basis, issued by OMFC and guaranteed by OMH | |||||||
VIEs | variable interest entities | |||||||
Weighted average interest rate | annualized interest expense as a percentage of average debt | |||||||
XBRL | eXtensible Business Reporting Language | |||||||
Yield | annualized finance charges as a percentage of average net receivables |
Item 1. Financial Statements. |
(dollars in millions, except par value amount) | June 30, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $ | ||||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $ | ||||||||||||||
Unearned insurance premium and claim reserves | ( | ( | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $ | ( | ( | ||||||||||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | ||||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $ | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $ | $ | $ | ||||||||||||
Insurance claims and policyholder liabilities | ||||||||||||||
Deferred and accrued taxes | ||||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $ | ||||||||||||||
Total liabilities | ||||||||||||||
Contingencies (Note 12) | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Common stock, par value $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Treasury stock, at cost; | ( | ( | ||||||||||||
Total shareholders’ equity | ||||||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ||||||||||||||||||||||||||
Other revenues: | ||||||||||||||||||||||||||
Insurance | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Gain on sales of finance receivables | ||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | ( | ( | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total other revenues | ||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||
Salaries and benefits | ||||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||
Insurance policy benefits and claims | ||||||||||||||||||||||||||
Total other expenses | ||||||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Income taxes | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Share Data: | ||||||||||||||||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | ( | ( | ( | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||
Changes in discount rate for insurance claims and policyholder liabilities | ||||||||||||||||||||||||||
Other | ( | |||||||||||||||||||||||||
Income tax effect: | ||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | ( | |||||||||||||||||||||||||
Foreign currency translation adjustments | ( | |||||||||||||||||||||||||
Changes in discount rate for insurance claims and policyholder liabilities | ( | ( | ( | ( | ||||||||||||||||||||||
Other | ( | ( | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax, before reclassification adjustments | ( | ( | ( | |||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax: | ||||||||||||||||||||||||||
Net realized losses on available-for-sale securities, net of tax | ( | |||||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax | ( | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
OneMain Holdings, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) (Continued) | ||||||||||||||||||||||||||||||||||||||
OneMain Holdings, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
— | — | — | — | |||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 (post-adoption) | ( | ( | ||||||||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Cash dividends* | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends* | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | $ | ||||||||||||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Deferred income tax charge (benefit) | ( | |||||||||||||
Net loss on repurchases and repayments of debt | ||||||||||||||
Share-based compensation expense, net of forfeitures | ||||||||||||||
Gain on sales of finance receivables | ( | ( | ||||||||||||
Other | ( | |||||||||||||
Cash flows due to changes in other assets and other liabilities | ( | ( | ||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations and purchases of finance receivables | ( | ( | ||||||||||||
Proceeds from sales of finance receivables | ||||||||||||||
Available-for-sale securities purchased | ( | ( | ||||||||||||
Available-for-sale securities called, sold, and matured | ||||||||||||||
Other securities purchased | ( | ( | ||||||||||||
Other securities called, sold, and matured | ||||||||||||||
Other, net | ( | ( | ||||||||||||
Net cash used for investing activities | ( | ( | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | ||||||||||||||
Repayments and repurchases of long-term debt | ( | ( | ||||||||||||
Cash dividends | ( | ( | ||||||||||||
Common stock repurchased | ( | ( | ||||||||||||
Treasury stock issued | ||||||||||||||
Withholding tax on share-based compensation | ( | ( | ||||||||||||
Net cash provided by (used for) financing activities | ( | |||||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | ||||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | $ | ||||||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash and restricted cash equivalents | ||||||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | $ | ||||||||||||
(dollars in millions, except par value amount) | June 30, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $ | ||||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $ | ||||||||||||||
Unearned insurance premium and claim reserves | ( | ( | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $ | ( | ( | ||||||||||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | ||||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $ | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and Shareholder’s Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $ | $ | $ | ||||||||||||
Insurance claims and policyholder liabilities | ||||||||||||||
Deferred and accrued taxes | ||||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $ | ||||||||||||||
Total liabilities | ||||||||||||||
Contingencies (Note 12) | ||||||||||||||
Shareholder’s equity: | ||||||||||||||
Common stock, par value $ and outstanding at June 30, 2023 and December 31, 2022 | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Total shareholder’s equity | ||||||||||||||
Total liabilities and shareholder’s equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Net interest income | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ||||||||||||||||||||||||||
Other revenues: | ||||||||||||||||||||||||||
Insurance | ||||||||||||||||||||||||||
Investment | ||||||||||||||||||||||||||
Gain on sales of finance receivables | ||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | ( | ( | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total other revenues | ||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||
Salaries and benefits | ||||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||
Insurance policy benefits and claims | ||||||||||||||||||||||||||
Total other expenses | ||||||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Income taxes | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | ( | ( | ( | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||
Changes in discount rate for insurance claims and policyholder liabilities | ||||||||||||||||||||||||||
Other | ( | |||||||||||||||||||||||||
Income tax effect: | ||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | ( | |||||||||||||||||||||||||
Foreign currency translation adjustments | ( | |||||||||||||||||||||||||
Changes in discount rate for insurance claims and policyholder liabilities | ( | ( | ( | ( | ||||||||||||||||||||||
Other | ( | ( | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax, before reclassification adjustments | ( | ( | ( | |||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax: | ||||||||||||||||||||||||||
Net realized losses on available-for-sale securities, net of tax | ( | |||||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax | ( | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
OneMain Finance Corporation Shareholder's Equity | ||||||||||||||||||||||||||||||||
(dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholder’s Equity | |||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Balance, April 1, 2023 | ( | |||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | ( | |||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | |||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | ( | |||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | |||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Shareholder’s Equity (Unaudited) | ||||||||||||||||||||||||||||||||
OneMain Finance Corporation Shareholder’s Equity | ||||||||||||||||||||||||||||||||
(dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholders’ Equity | |||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
— | — | — | ||||||||||||||||||||||||||||||
Balance, January 1, 2023 (post-adoption) | ( | |||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | ( | — | — | ( | |||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | |||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||
Withholding tax on shared-based compensation | — | ( | — | — | ( | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | ( | |||||||||||||||||||||||||||
Cash dividends | — | — | — | ( | ( | |||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | $ | ||||||||||||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Deferred income tax charge (benefit) | ( | |||||||||||||
Net loss on repurchases and repayments of debt | ||||||||||||||
Share-based compensation expense, net of forfeitures | ||||||||||||||
Gain on sales of finance receivables | ( | ( | ||||||||||||
Other | ( | |||||||||||||
Cash flows due to changes in other assets and other liabilities | ( | ( | ||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations and purchases of finance receivables | ( | ( | ||||||||||||
Proceeds from sales of finance receivables | ||||||||||||||
Available-for-sale securities purchased | ( | ( | ||||||||||||
Available-for-sale securities called, sold, and matured | ||||||||||||||
Other securities purchased | ( | ( | ||||||||||||
Other securities called, sold, and matured | ||||||||||||||
Other, net | ( | ( | ||||||||||||
Net cash used for investing activities | ( | ( | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | ||||||||||||||
Repayments and repurchases of long-term debt | ( | ( | ||||||||||||
Cash dividends | ( | ( | ||||||||||||
Withholding tax on share-based compensation | ( | ( | ||||||||||||
Net cash provided by (used for) financing activities | ( | |||||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | ||||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | $ | ||||||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash and restricted cash equivalents | ||||||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | $ | ||||||||||||
1. Business and Basis of Presentation |
2. Recent Accounting Pronouncements |
(dollars in millions) | As Reported | ASU 2018-12 Adjustment | As Recast | |||||||||||||||||
December 31, 2022 | ||||||||||||||||||||
Other assets (OMH only) | $ | $ | $ | |||||||||||||||||
Other assets (OMFC only) | ||||||||||||||||||||
Insurance claims and policyholder liabilities | ||||||||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | |||||||||||||||||
Retained earnings (OMH only) | ( | |||||||||||||||||||
Retained earnings (OMFC only) | ( | |||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||
Other assets (OMH only) | $ | $ | $ | |||||||||||||||||
Other assets (OMFC only) | ||||||||||||||||||||
Insurance claims and policyholder liabilities | ||||||||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | |||||||||||||||||
Retained earnings (OMH only) | ||||||||||||||||||||
Retained earnings (OMFC only) | ||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Other assets (OMH only) | $ | $ | $ | |||||||||||||||||
Other assets (OMFC only) | ||||||||||||||||||||
Insurance claims and policyholder liabilities | ||||||||||||||||||||
Accumulated other comprehensive income | ( | |||||||||||||||||||
January 1, 2021 | ||||||||||||||||||||
Other assets (OMH and OMFC) | $ | $ | $ | |||||||||||||||||
Insurance claims and policyholder liabilities | ||||||||||||||||||||
Accumulated other comprehensive income | ( | |||||||||||||||||||
(dollars in millions, except per share amounts) | As Reported | ASU 2018-12 Adjustment | As Recast | |||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||
Insurance policy benefits and claims | $ | $ | $ | |||||||||||||||||
Income before income taxes | ( | |||||||||||||||||||
Income taxes | ( | |||||||||||||||||||
Net income | ( | |||||||||||||||||||
Basic EPS (OMH only) | ( | |||||||||||||||||||
Diluted EPS (OMH only) | ( | |||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||
Insurance policy benefits and claims | $ | $ | ( | $ | ||||||||||||||||
Income before income taxes | ||||||||||||||||||||
Net income | ||||||||||||||||||||
Basic EPS (OMH only) | ||||||||||||||||||||
Diluted EPS (OMH only) |
(dollars in millions) | As Reported | ASU 2018-12 Adjustment | As Recast | |||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||
Comprehensive income | $ | $ | $ | |||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||
Comprehensive income | $ | $ | $ |
(dollars in millions) | As Reported | ASU 2018-12 Adjustment | As Recast | |||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | |||||||||||||||||
Deferred income tax charge | ||||||||||||||||||||
Cash flows due to changes in other assets and other liabilities (OMH only) | ( | ( | ( | |||||||||||||||||
Cash flows due to changes in other assets and other liabilities (OMFC only) | ( | ( | ( |
3. Finance Receivables |
(dollars in millions) | Personal Loans | Credit Cards | Total | |||||||||||||||||
June 30, 2023 | ||||||||||||||||||||
Gross finance receivables * | $ | $ | $ | |||||||||||||||||
Unearned fees | ( | ( | ||||||||||||||||||
Accrued finance charges and fees | ||||||||||||||||||||
Deferred origination costs | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
December 31, 2022 | ||||||||||||||||||||
Gross finance receivables * | $ | $ | $ | |||||||||||||||||
Unearned fees | ( | ( | ||||||||||||||||||
Accrued finance charges and fees | ||||||||||||||||||||
Deferred origination costs | ||||||||||||||||||||
Total | $ | $ | $ |
(dollars in millions) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total performing | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
90+ days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Gross charge-offs | $ | $ | $ | $ | $ | $ | $ |
(dollars in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total performing | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
90+ days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
(dollars in millions) | June 30, 2023 | December 31, 2022 | ||||||||||||
Current | $ | $ | ||||||||||||
30-59 days past due | ||||||||||||||
60-89 days past due | ||||||||||||||
90+ days past due | ||||||||||||||
Total | $ | $ | ||||||||||||
(dollars in millions) | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | ||||||||||||
Interest rate reduction and term extension | $ | $ | ||||||||||||
Interest rate reduction and principal forgiveness | ||||||||||||||
Total modifications to borrowers experiencing financial difficulties | $ | $ | ||||||||||||
Modifications as a percent of net finance receivables - personal loans | % | % | ||||||||||||
(dollars in millions) | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | ||||||||||||
Weighted-average interest rate reduction | % | % | ||||||||||||
Weighted-average term extension (months) | ||||||||||||||
Principal/interest forgiveness | $ | $ |
(dollars in millions) | June 30, 2023 | |||||||
Current | $ | |||||||
30-59 days past due | ||||||||
60-89 days past due | ||||||||
90+ days past due | ||||||||
Total* | $ | |||||||
(dollars in millions) | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | ||||||||||||
Interest rate reduction and term extension | $ | $ | ||||||||||||
Interest rate reduction and principal forgiveness | ||||||||||||||
Total | $ | $ |
(dollars in millions) | December 31, 2022 | |||||||
TDR gross finance receivables | $ | |||||||
TDR net finance receivables * | ||||||||
Allowance for TDR finance receivable losses | ||||||||
(dollars in millions) | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | ||||||||||||
Pre-modification TDR net finance receivables | $ | $ | ||||||||||||
Post-modification TDR net finance receivables: | ||||||||||||||
Rate reduction | ||||||||||||||
Other * | ||||||||||||||
Total post-modification TDR net finance receivables | $ | $ | ||||||||||||
Number of TDR accounts | ||||||||||||||
(dollars in millions) | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | ||||||||||||
TDR net finance receivables * | $ | $ | ||||||||||||
Number of TDR accounts | ||||||||||||||
4. Allowance for Finance Receivable Losses |
(dollars in millions) | Personal Loans | Credit Cards | Total | |||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | |||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||
Charge-offs | ( | ( | ( | |||||||||||||||||
Recoveries | ||||||||||||||||||||
Balance at end of period | $ | $ | $ | |||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | |||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||
Charge-offs | ( | ( | ||||||||||||||||||
Recoveries | ||||||||||||||||||||
Balance at end of period | $ | $ | $ | |||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | |||||||||||||||||
Impact of adoption of ASU 2022-02 * | ( | ( | ||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||
Charge-offs | ( | ( | ( | |||||||||||||||||
Recoveries | ||||||||||||||||||||
Balance at end of period | $ | $ | $ | |||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | |||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||
Charge-offs | ( | ( | ||||||||||||||||||
Recoveries | ||||||||||||||||||||
Balance at end of period | $ | $ | $ | |||||||||||||||||
5. Investment Securities |
(dollars in millions) | Cost/ Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||
June 30, 2023* | ||||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | $ | $ | ( | $ | |||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ( | |||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | ( | |||||||||||||||||||||||||
Corporate debt | ( | |||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||
RMBS | ( | |||||||||||||||||||||||||
CMBS | ( | |||||||||||||||||||||||||
CDO/ABS | ( | |||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | |||||||||||||||||||||
December 31, 2022* | ||||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | $ | $ | ( | $ | |||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ( | |||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | ( | |||||||||||||||||||||||||
Corporate debt | ( | |||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||
RMBS | ( | |||||||||||||||||||||||||
CMBS | ( | |||||||||||||||||||||||||
CDO/ABS | ( | |||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | |||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
(dollars in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Corporate debt | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||
RMBS | ( | ( | ( | |||||||||||||||||||||||||||||||||||
CMBS | ( | ( | ||||||||||||||||||||||||||||||||||||
CDO/ABS | ( | ( | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Corporate debt | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||
RMBS | ( | ( | ( | |||||||||||||||||||||||||||||||||||
CMBS | ( | ( | ( | |||||||||||||||||||||||||||||||||||
CDO/ABS | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
(dollars in millions) | Fair Value | Amortized Cost | ||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||||||||||||||
Due in 1 year or less | $ | $ | ||||||||||||
Due after 1 year through 5 years | ||||||||||||||
Due after 5 years through 10 years | ||||||||||||||
Due after 10 years | ||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | ||||||||||||||
Total | $ | $ |
(dollars in millions) | June 30, 2023 | December 31, 2022 | ||||||||||||
Fixed maturity other securities: | ||||||||||||||
Bonds | $ | $ | ||||||||||||
Preferred stock * | ||||||||||||||
Common stock * | ||||||||||||||
Total | $ | $ |
6. Long-term Debt |
Senior Debt | ||||||||||||||||||||||||||||||||
(dollars in millions) | Securitizations | Private Secured Term Funding | Unsecured Notes (a) | Junior Subordinated Debt (a) | Total | |||||||||||||||||||||||||||
Interest rates (b) | % | |||||||||||||||||||||||||||||||
Remainder of 2023 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||||||||
2025 | ||||||||||||||||||||||||||||||||
2026 | ||||||||||||||||||||||||||||||||
2027 | ||||||||||||||||||||||||||||||||
2028-2067 | ||||||||||||||||||||||||||||||||
Secured (c) | — | — | ||||||||||||||||||||||||||||||
Total principal maturities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total carrying amount | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Debt issuance costs (d) | ( | ( | ( | ( |
7. Variable Interest Entities |
(dollars in millions) | June 30, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Net finance receivables | ||||||||||||||
Allowance for finance receivable losses | ||||||||||||||
Restricted cash and restricted cash equivalents | ||||||||||||||
Other assets | ||||||||||||||
Liabilities | ||||||||||||||
Long-term debt | $ | $ | ||||||||||||
Other liabilities |
8. Insurance |
At or for the Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 (a) | ||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||
Less reinsurance recoverables | ( | ( | ||||||||||||
Net balance at beginning of period | ||||||||||||||
Additions for losses and loss adjustment expenses incurred to: | ||||||||||||||
Current year | ||||||||||||||
Prior years (b) | ( | ( | ||||||||||||
Total | ||||||||||||||
Reductions for losses and loss adjustment expenses paid related to: | ||||||||||||||
Current year | ( | ( | ||||||||||||
Prior years | ( | ( | ||||||||||||
Total | ( | ( | ||||||||||||
Net balance at end of period | ||||||||||||||
Plus reinsurance recoverables | ||||||||||||||
Balance at end of period | $ | $ |
At or for the Six Months Ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
(dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | ||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | ||||||||||||||||||||||
Effect of cumulative changes in discount rate assumptions (beginning of period) | ( | ( | ( | |||||||||||||||||||||||
Beginning balance at original discount rate | ||||||||||||||||||||||||||
Effect of actual variances from expected experience | ( | ( | ( | |||||||||||||||||||||||
Adjusted balance at beginning of period | ||||||||||||||||||||||||||
Interest accretion | ||||||||||||||||||||||||||
Net premiums collected | ( | ( | ( | ( | ||||||||||||||||||||||
Ending balance at original discount rate | ||||||||||||||||||||||||||
Effect of changes in discount rate assumptions | ( | |||||||||||||||||||||||||
Balance at ending of period | $ | $ | $ | $ |
At or for the Six Months Ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
(dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | ||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | ||||||||||||||||||||||
Effect of cumulative changes in discount rate assumptions (beginning of period) | ( | ( | ( | ( | ||||||||||||||||||||||
Beginning balance at original discount rate | ||||||||||||||||||||||||||
Effect of actual variances from expected experience | ( | ( | ||||||||||||||||||||||||
Adjusted balance at beginning of period | ||||||||||||||||||||||||||
Net issuances | ||||||||||||||||||||||||||
Interest accretion | ||||||||||||||||||||||||||
Benefit payments | ( | ( | ( | ( | ||||||||||||||||||||||
Ending balance at original discount rate | ||||||||||||||||||||||||||
Effect of changes in discount rate assumptions | ( | |||||||||||||||||||||||||
Balance at ending of period | $ | $ | $ | $ |
At or for the Six Months Ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
(dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | ||||||||||||||||||||||
Net liability for future policy benefits | $ | $ | $ | $ | ||||||||||||||||||||||
Deferred profit liability | ||||||||||||||||||||||||||
Total net liability for future policy benefits | $ | $ | $ | $ |
At or for the Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Term and whole life | $ | $ | ||||||||||||
Accidental death and disability protection | ||||||||||||||
Other* | ||||||||||||||
Total | $ | $ |
At or for the Six Months Ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
(dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | ||||||||||||||||||||||
Expected future gross premiums: | ||||||||||||||||||||||||||
Undiscounted | $ | $ | $ | $ | ||||||||||||||||||||||
Discounted | ||||||||||||||||||||||||||
Expected future benefit payments: | ||||||||||||||||||||||||||
Undiscounted | ||||||||||||||||||||||||||
Discounted |
At or for the Six Months Ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
(dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | ||||||||||||||||||||||
Gross premiums or assessments | $ | $ | $ | $ | ||||||||||||||||||||||
Interest accretion | $ | $ | $ | $ | ||||||||||||||||||||||
At or for the Six Months Ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | |||||||||||||||||||||||
Mortality/Morbidity: | ||||||||||||||||||||||||||
Expected | % | % | % | % | ||||||||||||||||||||||
Actual | % | % | % | % | ||||||||||||||||||||||
Lapses: | ||||||||||||||||||||||||||
Expected | % | % | % | % | ||||||||||||||||||||||
Actual | % | % | % | % |
At or for the Six Months Ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | |||||||||||||||||||||||
Interest accretion rate | % | % | % | % | ||||||||||||||||||||||
Current discount rate | % | % | % | % |
9. Capital Stock and Earnings Per Share (OMH Only) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Balance at beginning of period | ||||||||||||||||||||||||||
Common stock issued | ||||||||||||||||||||||||||
Common stock repurchased | ( | ( | ( | ( | ||||||||||||||||||||||
Treasury stock issued | ||||||||||||||||||||||||||
Balance at end of period |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Numerator (basic and diluted): | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average number of shares outstanding (basic) | ||||||||||||||||||||||||||
Effect of dilutive securities * | ||||||||||||||||||||||||||
Weighted average number of shares outstanding (diluted) | ||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ |
10. Accumulated Other Comprehensive Income (Loss) |
(dollars in millions) | Unrealized Gains (Losses) Available-for-Sale Securities (a) | Retirement Plan Liabilities Adjustments | Foreign Currency Translation Adjustments | Changes in discount rate for insurance claims and policyholder liabilities | Other (b) | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
11. Income Taxes |
12. Contingencies |
13. Segment Information |
(dollars in millions) | Consumer and Insurance | Other | Segment to GAAP Adjustment | Consolidated Total | ||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ||||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ( | |||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||
Income before income tax expense | $ | $ | $ | ( | $ | |||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ( | |||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||
Other expenses | ( | |||||||||||||||||||||||||
Income before income tax expense | $ | $ | ( | $ | $ | |||||||||||||||||||||
Assets | $ | $ | $ | $ | ||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ( | |||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||
Other expenses | ( | |||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | $ | $ | ( | $ | |||||||||||||||||||||
Assets | $ | $ | $ | $ |
14. Fair Value Measurements |
Fair Value Measurements Using | Total Fair Value | Total Carrying Value | ||||||||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Investment securities | ||||||||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | ||||||||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | ||||||||||||||||||||||||||||||||
Other assets * | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Long-term debt | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Investment securities | ||||||||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | ||||||||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | ||||||||||||||||||||||||||||||||
Other assets * | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Long-term debt | $ | $ | $ | $ | $ |
Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
June 30, 2023 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | $ | $ | $ | ||||||||||||||||||||||
Cash equivalents in securities | ||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | ||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | ||||||||||||||||||||||||||
Corporate debt | ||||||||||||||||||||||||||
RMBS | ||||||||||||||||||||||||||
CMBS | ||||||||||||||||||||||||||
CDO/ABS | ||||||||||||||||||||||||||
Total available-for-sale securities | ||||||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
Corporate debt | ||||||||||||||||||||||||||
CDO/ABS | ||||||||||||||||||||||||||
Total bonds | ||||||||||||||||||||||||||
Preferred stock | ||||||||||||||||||||||||||
Common stock | ||||||||||||||||||||||||||
Total other securities | ||||||||||||||||||||||||||
Total investment securities | ||||||||||||||||||||||||||
Restricted cash equivalents in mutual funds | ||||||||||||||||||||||||||
Restricted cash equivalents in securities | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | $ | $ | $ | ||||||||||||||||||||||
Cash equivalents in securities | ||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | ||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | ||||||||||||||||||||||||||
Corporate debt | ||||||||||||||||||||||||||
RMBS | ||||||||||||||||||||||||||
CMBS | ||||||||||||||||||||||||||
CDO/ABS | ||||||||||||||||||||||||||
Total available-for-sale securities | ||||||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
Corporate debt | ||||||||||||||||||||||||||
RMBS | ||||||||||||||||||||||||||
CDO/ABS | ||||||||||||||||||||||||||
Total bonds | ||||||||||||||||||||||||||
Preferred stock | ||||||||||||||||||||||||||
Common stock | ||||||||||||||||||||||||||
Total other securities | ||||||||||||||||||||||||||
Total investment securities | ||||||||||||||||||||||||||
Restricted cash equivalents in mutual funds | ||||||||||||||||||||||||||
Restricted cash equivalents in securities | $ | $ | $ | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Topic | Page | |||||||
Forward-Looking Statements |
Overview |
Recent Developments and Outlook |
Results of Operations |
At or for the Three Months Ended June 30, | At or for the Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Interest income | $ | 1,117 | $ | 1,106 | $ | 2,210 | $ | 2,195 | ||||||||||||||||||
Interest expense | 244 | 219 | 482 | 438 | ||||||||||||||||||||||
Provision for finance receivable losses | 479 | 339 | 865 | 577 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 394 | 548 | 863 | 1,180 | ||||||||||||||||||||||
Other revenues | 185 | 128 | 363 | 290 | ||||||||||||||||||||||
Other expenses | 441 | 398 | 853 | 793 | ||||||||||||||||||||||
Income before income taxes | 138 | 278 | 373 | 677 | ||||||||||||||||||||||
Income taxes | 35 | 70 | 91 | 166 | ||||||||||||||||||||||
Net income | $ | 103 | $ | 208 | $ | 282 | $ | 511 | ||||||||||||||||||
Share Data: | ||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Diluted | $ | 0.85 | $ | 1.67 | $ | 2.33 | $ | 4.05 | ||||||||||||||||||
Selected Financial Statistics * | ||||||||||||||||||||||||||
Total finance receivables: | ||||||||||||||||||||||||||
Net finance receivables | $ | 20,510 | $ | 19,448 | $ | 20,510 | $ | 19,448 | ||||||||||||||||||
Average net receivables | $ | 20,135 | $ | 19,160 | $ | 20,008 | $ | 19,122 | ||||||||||||||||||
Gross charge-off ratio | 9.01 | % | 7.35 | % | 9.11 | % | 7.17 | % | ||||||||||||||||||
Recovery ratio | (1.34) | % | (1.41) | % | (1.37) | % | (1.41) | % | ||||||||||||||||||
Net charge-off ratio | 7.67 | % | 5.95 | % | 7.73 | % | 5.76 | % | ||||||||||||||||||
Personal loans: | ||||||||||||||||||||||||||
Net finance receivables | $ | 20,351 | $ | 19,384 | $ | 20,351 | $ | 19,384 | ||||||||||||||||||
Yield | 22.22 | % | 23.11 | % | 22.24 | % | 23.12 | % | ||||||||||||||||||
Origination volume | $ | 3,742 | $ | 3,897 | $ | 6,559 | $ | 6,856 | ||||||||||||||||||
Number of accounts | 2,349,739 | 2,320,582 | 2,349,739 | 2,320,582 | ||||||||||||||||||||||
Number of accounts originated | 358,649 | 395,902 | 629,321 | 682,293 | ||||||||||||||||||||||
Net charge-off ratio | 7.60 | % | 5.96 | % | 7.66 | % | 5.77 | % | ||||||||||||||||||
30-89 Delinquency ratio | 2.76 | % | 2.73 | % | 2.76 | % | 2.73 | % | ||||||||||||||||||
Credit cards: | ||||||||||||||||||||||||||
Net finance receivables | $ | 159 | $ | 64 | $ | 159 | $ | 64 | ||||||||||||||||||
Purchase volume | $ | 81 | $ | 34 | $ | 134 | $ | 79 | ||||||||||||||||||
Number of open accounts | 230,099 | 78,979 | 230,099 | 78,979 | ||||||||||||||||||||||
Debt balances: | ||||||||||||||||||||||||||
Long-term debt balance | $ | 19,195 | $ | 17,922 | $ | 19,195 | $ | 17,922 | ||||||||||||||||||
Average daily debt balance | $ | 18,537 | $ | 17,693 | $ | 18,446 | $ | 17,623 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Consumer and Insurance | ||||||||||||||||||||||||||
Income before income taxes - Segment Accounting Basis | $ | 138 | $ | 279 | $ | 374 | $ | 678 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Regulatory settlements | 24 | — | 24 | — | ||||||||||||||||||||||
Net loss on repurchases and repayments of debt | — | 28 | — | 28 | ||||||||||||||||||||||
Direct costs associated with COVID-19 | — | 1 | — | 2 | ||||||||||||||||||||||
Cash-settled stock-based awards | — | 1 | — | 2 | ||||||||||||||||||||||
Adjusted pretax income (non-GAAP) | 162 | 309 | 398 | 710 | ||||||||||||||||||||||
Provision for finance receivable losses | 479 | 338 | 865 | 575 | ||||||||||||||||||||||
Net charge-offs | (385) | (283) | (768) | (545) | ||||||||||||||||||||||
Pretax capital generation (non-GAAP) | $ | 256 | $ | 364 | $ | 495 | $ | 740 | ||||||||||||||||||
Segment Results |
At or for the Three Months Ended June 30, | At or for the Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Interest income | $ | 1,115 | $ | 1,104 | $ | 2,208 | $ | 2,192 | ||||||||||||||||||
Interest expense | 242 | 218 | 480 | 435 | ||||||||||||||||||||||
Provision for finance receivable losses | 479 | 338 | 865 | 575 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 394 | 548 | 863 | 1,182 | ||||||||||||||||||||||
Other revenues | 182 | 153 | 358 | 311 | ||||||||||||||||||||||
Other expenses | 414 | 392 | 823 | 783 | ||||||||||||||||||||||
Adjusted pretax income (non-GAAP) | $ | 162 | $ | 309 | $ | 398 | $ | 710 | ||||||||||||||||||
Selected Financial Statistics * | ||||||||||||||||||||||||||
Total finance receivables: | ||||||||||||||||||||||||||
Net finance receivables | $ | 20,511 | $ | 19,449 | $ | 20,511 | $ | 19,449 | ||||||||||||||||||
Average net receivables | $ | 20,136 | $ | 19,162 | $ | 20,009 | $ | 19,124 | ||||||||||||||||||
Gross charge-off ratio | 9.01 | % | 7.35 | % | 9.11 | % | 7.17 | % | ||||||||||||||||||
Recovery ratio | (1.34) | % | (1.41) | % | (1.37) | % | (1.41) | % | ||||||||||||||||||
Net charge-off ratio | 7.67 | % | 5.95 | % | 7.73 | % | 5.76 | % | ||||||||||||||||||
Personal loans: | ||||||||||||||||||||||||||
Net finance receivables | $ | 20,352 | $ | 19,385 | $ | 20,352 | $ | 19,385 | ||||||||||||||||||
Yield | 22.21 | % | 23.10 | % | 22.24 | % | 23.10 | % | ||||||||||||||||||
Origination volume | $ | 3,742 | $ | 3,897 | $ | 6,559 | $ | 6,856 | ||||||||||||||||||
Number of accounts | 2,349,739 | 2,320,582 | 2,349,739 | 2,320,582 | ||||||||||||||||||||||
Number of accounts originated | 358,649 | 395,902 | 629,321 | 682,293 | ||||||||||||||||||||||
Net charge-off ratio | 7.60 | % | 5.96 | % | 7.66 | % | 5.77 | % | ||||||||||||||||||
30-89 Delinquency ratio | 2.76 | % | 2.73 | % | 2.76 | % | 2.73 | % | ||||||||||||||||||
Credit cards: | ||||||||||||||||||||||||||
Net finance receivables | $ | 159 | $ | 64 | $ | 159 | $ | 64 | ||||||||||||||||||
Purchase volume | $ | 81 | $ | 34 | $ | 134 | $ | 79 | ||||||||||||||||||
Number of open accounts | 230,099 | 78,979 | 230,099 | 78,979 | ||||||||||||||||||||||
Credit Quality |
Consumer and Insurance | ||||||||||||||
(dollars in millions) | Personal Loans | Credit Cards | ||||||||||||
June 30, 2023 | ||||||||||||||
Current | $ | 19,316 | $ | 142 | ||||||||||
30-89 days past due | 562 | 8 | ||||||||||||
90+ days past due | 474 | 9 | ||||||||||||
Total net finance receivables | $ | 20,352 | $ | 159 | ||||||||||
Delinquency ratio | ||||||||||||||
30-89 days past due | 2.76 | % | 4.70 | % | ||||||||||
30+ days past due | 5.09 | % | 10.52 | % | ||||||||||
90+ days past due | 2.33 | % | 5.82 | % | ||||||||||
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 | % |
(dollars in millions) | Consumer and Insurance | Segment to GAAP Adjustment | Consolidated Total | |||||||||||||||||||||||
Personal Loans | Credit Cards | |||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,275 | $ | 23 | $ | — | $ | 2,298 | ||||||||||||||||||
Provision for finance receivable losses | 464 | 15 | — | 479 | ||||||||||||||||||||||
Charge-offs | (446) | (6) | — | (452) | ||||||||||||||||||||||
Recoveries | 67 | — | — | 67 | ||||||||||||||||||||||
Balance at end of period | $ | 2,360 | $ | 32 | $ | — | $ | 2,392 | ||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,067 | $ | 10 | $ | (6) | $ | 2,071 | ||||||||||||||||||
Provision for finance receivable losses | 336 | 2 | 1 | 339 | ||||||||||||||||||||||
Charge-offs | (351) | — | — | (351) | ||||||||||||||||||||||
Recoveries | 68 | — | — | 68 | ||||||||||||||||||||||
Balance at end of period | $ | 2,120 | $ | 12 | $ | (5) | $ | 2,127 | ||||||||||||||||||
Six Months Ended June 30, 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 | 841 | 24 | — | 865 | ||||||||||||||||||||||
Charge-offs | (891) | (13) | — | (904) | ||||||||||||||||||||||
Recoveries | 136 | — | — | 136 | ||||||||||||||||||||||
Balance at end of period | $ | 2,360 | $ | 32 | $ | — | $ | 2,392 | ||||||||||||||||||
Allowance ratio | 11.60 | % | 20.45 | % | (b) | 11.66 | % | |||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,097 | $ | 5 | $ | (7) | $ | 2,095 | ||||||||||||||||||
Provision for finance receivable losses | 568 | 7 | 2 | 577 | ||||||||||||||||||||||
Charge-offs | (680) | — | — | (680) | ||||||||||||||||||||||
Recoveries | 135 | — | — | 135 | ||||||||||||||||||||||
Balance at end of period | $ | 2,120 | $ | 12 | $ | (5) | $ | 2,127 | ||||||||||||||||||
Allowance ratio | 10.94 | % | 19.13 | % | (b) | 10.94 | % | |||||||||||||||||||
Liquidity and Capital Resources |
As of June 30, 2023 | Rating | Outlook | ||||||||||||
S&P | BB | Stable | ||||||||||||
Moody’s | Ba2 | Stable | ||||||||||||
KBRA | BB+ | Positive |
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 | ||||||||||||||||||||||
Total | $ | 2.00 | $ | 242 |
(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 | 299 | 326 | 3.92 | % | 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 2020-1 | 821 | 958 | 269 | 381 | 4.69 | % | 2 years | |||||||||||||||||||||||||||||||
OMFIT 2020-2 | 1,000 | 1,053 | 1,000 | 1,053 | 2.03 | % | 5 years | |||||||||||||||||||||||||||||||
OMFIT 2021-1 | 850 | 904 | 850 | 904 | 2.75 | % | 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 (c) | 825 | 920 | 825 | 920 | 5.82 | % | 5 years | |||||||||||||||||||||||||||||||
ODART 2019-1 | 737 | 750 | 700 | 750 | 3.79 | % | 5 years | |||||||||||||||||||||||||||||||
ODART 2021-1 | 1,000 | 1,053 | 1,000 | 1,053 | 0.98 | % | 2 years | |||||||||||||||||||||||||||||||
ODART 2022-1 | 600 | 632 | 600 | 632 | 5.06 | % | 2 years | |||||||||||||||||||||||||||||||
ODART 2023-1 | 750 | 792 | 750 | 792 | 5.63 | % | 3 years | |||||||||||||||||||||||||||||||
Total securitizations | $ | 11,219 | $ | 12,123 | $ | 10,339 | $ | 11,539 |
(dollars in millions) | Advance Maximum Balance | Amount Drawn | ||||||||||||
OneMain Financial Funding VII, LLC | $ | 600 | $ | — | ||||||||||
OneMain Financial Funding IX, LLC | 600 | — | ||||||||||||
OneMain Financial Auto Funding I, LLC | 550 | — | ||||||||||||
Seine River Funding, LLC | 550 | — | ||||||||||||
Hudson River Funding, LLC | 500 | — | ||||||||||||
OneMain Financial Funding VIII, LLC | 400 | — | ||||||||||||
River Thames Funding, LLC | 400 | — | ||||||||||||
OneMain Financial Funding X, LLC | 400 | — | ||||||||||||
Chicago River Funding, LLC | 375 | — | ||||||||||||
Mystic River Funding, LLC | 350 | — | ||||||||||||
Thayer Brook Funding, LLC | 350 | — | ||||||||||||
Columbia River Funding, LLC | 350 | — | ||||||||||||
Hubbard River Funding, LLC | 250 | — | ||||||||||||
New River Funding Trust | 250 | — | ||||||||||||
St. Lawrence River Funding, LLC | 250 | — | ||||||||||||
Total | $ | 6,175 | $ | — |
Critical Accounting Policies and Estimates |
Recent Accounting Pronouncements |
Seasonality |
Item 3. Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. Controls and Procedures. |
Item 1. Legal Proceedings. |
Item 1A. Risk Factors. |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
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) | ||||||||||||||||||||||
April 1 - April 30 | — | $ | — | — | $ | 698,033,606 | ||||||||||||||||||||
May 1 - May 31 | 96,072 | 36.43 | 96,072 | 694,533,922 | ||||||||||||||||||||||
June 1 - June 30 | 73,178 | 41.37 | 73,178 | 691,506,623 | ||||||||||||||||||||||
Total | 169,250 | $ | 38.56 | 169,250 | ||||||||||||||||||||||
Item 3. Defaults Upon Senior Securities. |
Item 4. Mine Safety Disclosures. |
Item 5. Other Information. |
Item 6. Exhibit Index. |
Exhibit Number | Description | |||||||
101 | Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Shareholder’s Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File in Inline XBRL format (Included in Exhibit 101). |
OMH Signature |
ONEMAIN HOLDINGS, INC. | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | July 28, 2023 | By: | /s/ Micah R. Conrad | |||||||||||
Micah R. Conrad | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
(Duly Authorized Officer and Principal Financial Officer) |
OMFC Signature |
ONEMAIN FINANCE CORPORATION | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | July 28, 2023 | By: | /s/ Matthew W. Vaughan | |||||||||||
Matthew W. Vaughan | ||||||||||||||
Vice President - Senior Managing Director and Chief Financial Officer | ||||||||||||||
(Duly Authorized Officer and Principal Financial Officer) |
Exhibit 31.1 |
Date: | July 28, 2023 | ||||||||||
/s/ Douglas H. Shulman | |||||||||||
Douglas H. Shulman | |||||||||||
President and Chief Executive Officer |
Exhibit 31.2 |
Date: | July 28, 2023 | ||||||||||
/s/ Micah R. Conrad | |||||||||||
Micah R. Conrad | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
(Duly Authorized Officer and Principal Financial Officer) |
Exhibit 31.3 |
Date: | July 28, 2023 | ||||||||||
/s/ Micah R. Conrad | |||||||||||
Micah R. Conrad | |||||||||||
President and Chief Executive Officer |
Exhibit 31.4 |
Date: | July 28, 2023 | ||||||||||
/s/ Matthew W. Vaughan | |||||||||||
Matthew W. Vaughan | |||||||||||
Vice President - Senior Managing Director and Chief Financial Officer | |||||||||||
(Duly Authorized Officer and Principal Financial Officer) |
Exhibit 32.1 |
/s/ Douglas H. Shulman | |||||||||||
Douglas H. Shulman | |||||||||||
President and Chief Executive Officer | |||||||||||
/s/ Micah R. Conrad | |||||||||||
Micah R. Conrad | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
Date: | July 28, 2023 |
Exhibit 32.2 |
/s/ Micah R. Conrad | |||||||||||
Micah R. Conrad | |||||||||||
President and Chief Executive Officer | |||||||||||
/s/ Matthew W. Vaughan | |||||||||||
Matthew W. Vaughan | |||||||||||
Vice President - Senior Managing Director and Chief Financial Officer | |||||||||||
Date: | July 28, 2023 |
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Investment securities, fair value | $ 1,640 | $ 1,729 |
Investment securities, amortized cost basis | 1,797 | 1,897 |
Net finance receivables | 20,510 | 19,986 |
Financing receivable, allowance for credit loss | 2,392 | 2,311 |
Restricted cash and restricted cash equivalents | 532 | 461 |
Long-term debt | 19,195 | 18,281 |
Other liabilities | $ 637 | $ 616 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 120,446,799 | 121,042,125 |
Common stock, shares outstanding (in shares) | 120,446,799 | 121,042,125 |
Treasury stock at cost (in shares) | 14,625,250 | 13,813,476 |
Consolidated VIEs | ||
Net finance receivables | $ 11,807 | $ 10,432 |
Financing receivable, allowance for credit loss | 1,300 | 1,126 |
Restricted cash and restricted cash equivalents | 505 | 442 |
Long-term debt | 10,643 | 9,361 |
Other liabilities | $ 22 | $ 20 |
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) $ in Millions |
Total |
Net impact of adoption of ASU 2022-02 (see Note 2) |
Cumulative Effect, Period Of Adoption, Adjusted Balance |
Common Stock |
Common Stock
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
Additional Paid-in Capital |
Additional Paid-in Capital
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
Retained Earnings |
Retained Earnings
Net impact of adoption of ASU 2022-02 (see Note 2)
|
Retained Earnings
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
Treasury Stock |
Treasury Stock
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at beginning of period at Dec. 31, 2021 | $ 3,037 | $ 1 | $ 1,672 | $ 5 | $ 1,727 | $ (368) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Common stock repurchased | (204) | (204) | ||||||||||||||||
Treasury stock issued (in shares) | 1 | 1 | ||||||||||||||||
Share-based compensation expense, net of forfeitures | 19 | 19 | ||||||||||||||||
Withholding tax on share-based compensation | (12) | (12) | ||||||||||||||||
Other comprehensive income (loss) | (88) | (88) | ||||||||||||||||
Cash dividends | [1] | (243) | (243) | |||||||||||||||
Net income | 511 | 511 | ||||||||||||||||
Balance at end of period at Jun. 30, 2022 | 3,021 | 1 | 1,679 | (83) | 1,995 | (571) | ||||||||||||
Balance at beginning of period at Dec. 31, 2021 | 3,037 | 1 | 1,672 | 5 | 1,727 | (368) | ||||||||||||
Balance at end of period at Dec. 31, 2022 | $ 3,015 | $ 12 | $ 3,027 | 1 | $ 1 | 1,689 | $ 1,689 | (127) | $ (127) | 2,119 | $ 12 | $ 2,131 | (667) | $ (667) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2022-02 [Member] | |||||||||||||||||
Balance at beginning of period at Mar. 31, 2022 | $ 3,060 | 1 | 1,672 | (42) | 1,907 | (478) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Common stock repurchased | (94) | (94) | ||||||||||||||||
Treasury stock issued (in shares) | 1 | 1 | ||||||||||||||||
Share-based compensation expense, net of forfeitures | 7 | 7 | ||||||||||||||||
Other comprehensive income (loss) | (41) | (41) | ||||||||||||||||
Cash dividends | [2] | (120) | (120) | |||||||||||||||
Net income | 208 | 208 | ||||||||||||||||
Balance at end of period at Jun. 30, 2022 | 3,021 | 1 | 1,679 | (83) | 1,995 | (571) | ||||||||||||
Balance at beginning of period at Dec. 31, 2022 | 3,015 | $ 12 | $ 3,027 | 1 | $ 1 | 1,689 | $ 1,689 | (127) | $ (127) | 2,119 | $ 12 | $ 2,131 | (667) | $ (667) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Common stock repurchased | (34) | (34) | ||||||||||||||||
Treasury stock issued (in shares) | 1 | (1) | 2 | |||||||||||||||
Share-based compensation expense, net of forfeitures | 21 | 21 | ||||||||||||||||
Withholding tax on share-based compensation | (8) | (8) | ||||||||||||||||
Other comprehensive income (loss) | 13 | 13 | ||||||||||||||||
Cash dividends | [1] | (244) | (244) | |||||||||||||||
Net income | 282 | 282 | ||||||||||||||||
Balance at end of period at Jun. 30, 2023 | 3,058 | 1 | 1,702 | (114) | 2,168 | (699) | ||||||||||||
Balance at beginning of period at Mar. 31, 2023 | 3,081 | 1 | 1,693 | (108) | 2,188 | (693) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Common stock repurchased | (7) | (7) | ||||||||||||||||
Treasury stock issued (in shares) | 1 | 1 | ||||||||||||||||
Share-based compensation expense, net of forfeitures | 9 | 9 | ||||||||||||||||
Other comprehensive income (loss) | (6) | (6) | ||||||||||||||||
Cash dividends | [2] | (123) | (123) | |||||||||||||||
Net income | 103 | 103 | ||||||||||||||||
Balance at end of period at Jun. 30, 2023 | $ 3,058 | $ 1 | $ 1,702 | $ (114) | $ 2,168 | $ (699) | ||||||||||||
|
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 1.00 | $ 0.95 | $ 2.00 | $ 1.90 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - OMFC - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
|||
---|---|---|---|---|---|
Investment securities, fair value | $ 1,640 | $ 1,729 | |||
Investment securities, amortized cost basis | 1,797 | 1,897 | |||
Net finance receivables | 20,510 | 19,986 | |||
Financing receivable, allowance for credit loss | 2,392 | 2,311 | |||
Restricted cash and restricted cash equivalents | 532 | 461 | |||
Long-term debt | 19,195 | 18,281 | |||
Other liabilities | $ 637 | $ 616 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |||
Common stock, shares issued (in shares) | 120,446,799 | 121,042,125 | |||
Common stock, shares outstanding (in shares) | 120,446,799 | 121,042,125 | |||
OMFC | |||||
Investment securities, fair value | $ 1,600 | $ 1,700 | |||
Investment securities, amortized cost basis | 1,800 | 1,900 | |||
Net finance receivables | 20,510 | 19,986 | |||
Financing receivable, allowance for credit loss | 2,392 | 2,311 | |||
Restricted cash and restricted cash equivalents | 532 | [1] | 461 | ||
Long-term debt | 19,195 | 18,281 | |||
Other liabilities | $ 638 | $ 617 | |||
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 | |||
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | |||
Common stock, shares issued (in shares) | 10,160,021 | 10,160,021 | |||
Common stock, shares outstanding (in shares) | 10,160,021 | 10,160,021 | |||
Consolidated VIEs | |||||
Net finance receivables | $ 11,807 | $ 10,432 | |||
Financing receivable, allowance for credit loss | 1,300 | 1,126 | |||
Restricted cash and restricted cash equivalents | 505 | 442 | |||
Long-term debt | 10,643 | 9,361 | |||
Other liabilities | 22 | 20 | |||
Consolidated VIEs | OMFC | |||||
Net finance receivables | 11,800 | 10,400 | |||
Financing receivable, allowance for credit loss | 1,300 | 1,100 | |||
Restricted cash and restricted cash equivalents | 505 | 442 | |||
Long-term debt | 10,600 | 9,400 | |||
Other liabilities | $ 22 | $ 20 | |||
|
Condensed Consolidated Statements of Operations (Unaudited) - OMFC - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Interest income | $ 1,117 | $ 1,106 | $ 2,210 | $ 2,195 |
Interest expense | 244 | 219 | 482 | 438 |
Net interest income | 873 | 887 | 1,728 | 1,757 |
Provision for finance receivable losses | 479 | 339 | 865 | 577 |
Net interest income after provision for finance receivable losses | 394 | 548 | 863 | 1,180 |
Other revenues: | ||||
Insurance | 112 | 111 | 222 | 222 |
Investment | 27 | 9 | 52 | 24 |
Gain on sales of finance receivables | 13 | 16 | 31 | 33 |
Net loss on repurchases and repayments of debt | 0 | (28) | 0 | (28) |
Other | 33 | 20 | 58 | 39 |
Total other revenues | 185 | 128 | 363 | 290 |
Other expenses: | ||||
Salaries and benefits | 219 | 205 | 431 | 409 |
Other operating expenses | 178 | 151 | 331 | 300 |
Insurance policy benefits and claims | 44 | 42 | 91 | 84 |
Total other expenses | 441 | 398 | 853 | 793 |
Income before income taxes | 138 | 278 | 373 | 677 |
Income taxes | 35 | 70 | 91 | 166 |
Net income | 103 | 208 | 282 | 511 |
OMFC | ||||
Interest income | 1,117 | 1,106 | 2,210 | 2,195 |
Interest expense | 244 | 219 | 482 | 438 |
Net interest income | 873 | 887 | 1,728 | 1,757 |
Provision for finance receivable losses | 479 | 339 | 865 | 577 |
Net interest income after provision for finance receivable losses | 394 | 548 | 863 | 1,180 |
Other revenues: | ||||
Insurance | 112 | 111 | 222 | 222 |
Investment | 27 | 9 | 52 | 24 |
Gain on sales of finance receivables | 13 | 16 | 31 | 33 |
Net loss on repurchases and repayments of debt | 0 | (28) | 0 | (28) |
Other | 33 | 20 | 58 | 39 |
Total other revenues | 185 | 128 | 363 | 290 |
Other expenses: | ||||
Salaries and benefits | 219 | 205 | 431 | 409 |
Other operating expenses | 178 | 151 | 331 | 300 |
Insurance policy benefits and claims | 44 | 42 | 91 | 84 |
Total other expenses | 441 | 398 | 853 | 793 |
Income before income taxes | 138 | 278 | 373 | 677 |
Income taxes | 35 | 70 | 91 | 166 |
Net income | $ 103 | $ 208 | $ 282 | $ 511 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - OMFC - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Net income | $ 103 | $ 208 | $ 282 | $ 511 |
Other comprehensive income (loss): | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (15) | (79) | 9 | (183) |
Foreign currency translation adjustments | 3 | (4) | 4 | (3) |
Changes in discount rate for insurance claims and policyholder liabilities | 3 | 23 | 6 | 55 |
Other | 1 | 7 | (2) | 20 |
Income tax effect: | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 3 | 18 | (2) | 42 |
Foreign currency translation adjustments | 0 | 1 | (1) | 1 |
Changes in discount rate for insurance claims and policyholder liabilities | (1) | (5) | (1) | (12) |
Other | 0 | (2) | 0 | (5) |
Other comprehensive income (loss), net of tax, before reclassification adjustments | (6) | (41) | 13 | (85) |
Net realized losses on available-for-sale securities, net of tax | 0 | 0 | 0 | (3) |
Reclassification adjustments included in net income, net of tax | 0 | 0 | 0 | (3) |
Other comprehensive income (loss), net of tax | (6) | (41) | 13 | (88) |
Comprehensive income | 97 | 167 | 295 | 423 |
OMFC | ||||
Net income | 103 | 208 | 282 | 511 |
Other comprehensive income (loss): | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (15) | (79) | 9 | (183) |
Foreign currency translation adjustments | 3 | (4) | 4 | (3) |
Changes in discount rate for insurance claims and policyholder liabilities | 3 | 23 | 6 | 55 |
Other | 1 | 7 | (2) | 20 |
Income tax effect: | ||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 3 | 18 | (2) | 42 |
Foreign currency translation adjustments | 0 | 1 | (1) | 1 |
Changes in discount rate for insurance claims and policyholder liabilities | (1) | (5) | (1) | (12) |
Other | 0 | (2) | 0 | (5) |
Other comprehensive income (loss), net of tax, before reclassification adjustments | (6) | (41) | 13 | (85) |
Net realized losses on available-for-sale securities, net of tax | 0 | 0 | 0 | (3) |
Reclassification adjustments included in net income, net of tax | 0 | 0 | 0 | (3) |
Other comprehensive income (loss), net of tax | (6) | (41) | 13 | (88) |
Comprehensive income | $ 97 | $ 167 | $ 295 | $ 423 |
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - OMFC - USD ($) $ in Millions |
Total |
Cumulative Effect, Period Of Adoption, Adjustment |
Cumulative Effect, Period Of Adoption, Adjusted Balance |
Common Stock |
Common Stock
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
Additional Paid-in Capital |
Additional Paid-in Capital
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
Retained Earnings |
Retained Earnings
Cumulative Effect, Period Of Adoption, Adjustment
|
Retained Earnings
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
OMFC |
OMFC
Cumulative Effect, Period Of Adoption, Adjustment
|
OMFC
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
OMFC
Common Stock
|
OMFC
Common Stock
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
OMFC
Additional Paid-in Capital
|
OMFC
Additional Paid-in Capital
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
OMFC
Accumulated Other Comprehensive Income (Loss)
|
OMFC
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
OMFC
Retained Earnings
|
OMFC
Retained Earnings
Cumulative Effect, Period Of Adoption, Adjustment
|
OMFC
Retained Earnings
Cumulative Effect, Period Of Adoption, Adjusted Balance
|
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at beginning of period at Dec. 31, 2021 | $ 3,037 | $ 1 | $ 1,672 | $ 5 | $ 1,727 | $ 3,004 | $ 5 | $ 1,916 | $ 5 | $ 1,078 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 19 | 19 | 19 | 19 | ||||||||||||||||||||||||||
Withholding tax on share-based compensation | (12) | (12) | (12) | (12) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | (88) | (88) | (88) | (88) | ||||||||||||||||||||||||||
Cash dividends | (243) | [1] | (243) | [1] | (423) | (423) | ||||||||||||||||||||||||
Net income | 511 | 511 | 511 | 511 | ||||||||||||||||||||||||||
Balance at end of period at Jun. 30, 2022 | 3,021 | 1 | 1,679 | (83) | 1,995 | 3,011 | 5 | 1,923 | (83) | 1,166 | ||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2021 | $ 3,037 | 1 | 1,672 | 5 | 1,727 | $ 3,004 | 5 | 1,916 | 5 | 1,078 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2022-02 [Member] | Accounting Standards Update 2022-02 [Member] | ||||||||||||||||||||||||||||
Balance at end of period at Dec. 31, 2022 | $ 3,015 | $ 12 | $ 3,027 | 1 | $ 1 | 1,689 | $ 1,689 | (127) | $ (127) | 2,119 | $ 12 | $ 2,131 | $ 3,004 | $ 12 | $ 3,016 | 5 | $ 5 | 1,933 | $ 1,933 | (127) | $ (127) | 1,193 | $ 12 | $ 1,205 | ||||||
Balance at beginning of period at Mar. 31, 2022 | 3,060 | 1 | 1,672 | (42) | 1,907 | 3,037 | 5 | 1,916 | (42) | 1,158 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 7 | 7 | 7 | 7 | ||||||||||||||||||||||||||
Other comprehensive income (loss) | (41) | (41) | (41) | (41) | ||||||||||||||||||||||||||
Cash dividends | (120) | [2] | (120) | [2] | (200) | (200) | ||||||||||||||||||||||||
Net income | 208 | 208 | 208 | 208 | ||||||||||||||||||||||||||
Balance at end of period at Jun. 30, 2022 | 3,021 | 1 | 1,679 | (83) | 1,995 | 3,011 | 5 | 1,923 | (83) | 1,166 | ||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2022 | 3,015 | $ 12 | $ 3,027 | 1 | $ 1 | 1,689 | $ 1,689 | (127) | $ (127) | 2,119 | $ 12 | $ 2,131 | 3,004 | $ 12 | $ 3,016 | 5 | $ 5 | 1,933 | $ 1,933 | (127) | $ (127) | 1,193 | $ 12 | $ 1,205 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 21 | 21 | 21 | 21 | ||||||||||||||||||||||||||
Withholding tax on share-based compensation | (8) | (8) | (8) | (8) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | 13 | 13 | 13 | 13 | ||||||||||||||||||||||||||
Cash dividends | (244) | [1] | (244) | [1] | (283) | (283) | ||||||||||||||||||||||||
Net income | 282 | 282 | 282 | 282 | ||||||||||||||||||||||||||
Balance at end of period at Jun. 30, 2023 | 3,058 | 1 | 1,702 | (114) | 2,168 | 3,041 | 5 | 1,946 | (114) | 1,204 | ||||||||||||||||||||
Balance at beginning of period at Mar. 31, 2023 | 3,081 | 1 | 1,693 | (108) | 2,188 | 3,068 | 5 | 1,937 | (108) | 1,234 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 9 | 9 | 9 | 9 | ||||||||||||||||||||||||||
Other comprehensive income (loss) | (6) | (6) | (6) | (6) | ||||||||||||||||||||||||||
Cash dividends | (123) | [2] | (123) | [2] | (133) | (133) | ||||||||||||||||||||||||
Net income | 103 | 103 | 103 | 103 | ||||||||||||||||||||||||||
Balance at end of period at Jun. 30, 2023 | $ 3,058 | $ 1 | $ 1,702 | $ (114) | $ 2,168 | $ 3,041 | $ 5 | $ 1,946 | $ (114) | $ 1,204 | ||||||||||||||||||||
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Condensed Consolidated Statements of Cash Flows (Unaudited) - OMFC - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||||||
Net income | $ 103 | $ 208 | $ 282 | $ 511 | ||
Reconciling adjustments: | ||||||
Provision for finance receivable losses | 479 | 339 | 865 | 577 | ||
Depreciation and amortization | 125 | 125 | ||||
Deferred income tax charge (benefit) | (14) | 2 | ||||
Net loss on repurchases and repayments of debt | 0 | 28 | 0 | 28 | ||
Share-based compensation expense, net of forfeitures | 21 | 19 | ||||
Gain on sales of finance receivables | (13) | (16) | (31) | (33) | ||
Other | (2) | 3 | ||||
Cash flows due to changes in other assets and other liabilities | (1) | (54) | ||||
Net cash provided by operating activities | 1,245 | 1,178 | ||||
Cash flows from investing activities | ||||||
Net principal originations and purchases of finance receivables | (1,676) | (1,195) | ||||
Proceeds from sales of finance receivables | 349 | 399 | ||||
Available-for-sale securities purchased | (83) | (267) | ||||
Available-for-sale securities called, sold, and matured | 192 | 293 | ||||
Other securities purchased | (3) | (4) | ||||
Other securities called, sold, and matured | 4 | 9 | ||||
Other, net | (43) | (37) | ||||
Net cash used for investing activities | (1,260) | (802) | ||||
Cash flows from financing activities | ||||||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | 2,353 | 2,589 | ||||
Repayments and repurchases of long-term debt | (1,459) | (2,461) | ||||
Cash dividends | (245) | (246) | ||||
Withholding tax on share-based compensation | (8) | (12) | ||||
Net cash provided by (used for) financing activities | 609 | (333) | ||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 594 | 43 | ||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 959 | 1,017 | ||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,553 | 1,060 | 1,553 | 1,060 | ||
Supplemental cash flow information | ||||||
Cash and cash equivalents | 1,021 | 526 | 1,021 | 526 | ||
Restricted cash and restricted cash equivalents | 532 | 534 | 532 | 534 | ||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,553 | 1,060 | 1,553 | 1,060 | ||
OMFC | ||||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||||||
Net income | 103 | 208 | 282 | 511 | ||
Reconciling adjustments: | ||||||
Provision for finance receivable losses | 479 | 339 | 865 | 577 | ||
Depreciation and amortization | 125 | 125 | ||||
Deferred income tax charge (benefit) | (14) | 2 | ||||
Net loss on repurchases and repayments of debt | 0 | 28 | 0 | 28 | ||
Share-based compensation expense, net of forfeitures | 21 | 19 | ||||
Gain on sales of finance receivables | (13) | (16) | (31) | (33) | ||
Other | (2) | 3 | ||||
Cash flows due to changes in other assets and other liabilities | (1) | (53) | ||||
Net cash provided by operating activities | 1,245 | 1,179 | ||||
Cash flows from investing activities | ||||||
Net principal originations and purchases of finance receivables | (1,676) | (1,195) | ||||
Proceeds from sales of finance receivables | 349 | 399 | ||||
Available-for-sale securities purchased | (83) | (267) | ||||
Available-for-sale securities called, sold, and matured | 192 | 293 | ||||
Other securities purchased | (3) | (4) | ||||
Other securities called, sold, and matured | 4 | 9 | ||||
Other, net | (43) | (37) | ||||
Net cash used for investing activities | (1,260) | (802) | ||||
Cash flows from financing activities | ||||||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | 2,353 | 2,589 | ||||
Repayments and repurchases of long-term debt | (1,459) | (2,461) | ||||
Cash dividends | (283) | (426) | ||||
Withholding tax on share-based compensation | (8) | (12) | ||||
Net cash provided by (used for) financing activities | 603 | (310) | ||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 588 | 67 | ||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 951 | 986 | ||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,539 | 1,053 | 1,539 | 1,053 | ||
Supplemental cash flow information | ||||||
Cash and cash equivalents | 1,007 | 519 | 1,007 | 519 | ||
Restricted cash and restricted cash equivalents | [1] | 532 | 534 | 532 | 534 | |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ 1,539 | $ 1,053 | $ 1,539 | $ 1,053 | ||
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Business and Basis of Presentation |
6 Months Ended | ||||||
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Jun. 30, 2023 | |||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Business and Basis of Presentation |
OneMain Holdings, Inc. (“OMH”), and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”) are financial services holding companies whose subsidiaries engage in the consumer finance and insurance businesses. The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this filing relates to both OMH and OMFC, except where otherwise indicated. 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.” BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report. We follow the same significant accounting policies for our interim reporting except for the new accounting pronouncements subsequently adopted and disclosed in Note 2. To conform to the 2023 presentation, we reclassified certain items in prior periods of our condensed consolidated financial statements.
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Recent Accounting Pronouncements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements |
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The ASU requires the assumptions used to measure the liability for future policy benefits to be updated at least annually. The guidance prescribes the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income. The amendments in this ASU became effective for the Company beginning January 1, 2023 and we adopted using the modified retrospective transition method. This ASU required a transition date of January 1, 2021 and resulted in recasting prior periods. The effects of the adoption of ASU 2018-12 to our condensed consolidated balance sheets were as follows:
The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of operations were as follows:
The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of comprehensive income were as follows:
The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of cash flows were as follows:
As a result of the adoption of ASU 2018-12, our significant accounting policy related to long-duration insurance contracts for policy and claim reserves has changed to reflect the requirements of the new standard. See below for the updated significant accounting policy as of the transition date of January 1, 2021. Policy and Claim Reserves Policy reserves are established for our long-duration contracts. The liability for future policy benefits is the present value of estimated future policy benefits to be paid to or on behalf of policyholders less the present value of estimated future net premiums to be collected from policyholders. To estimate the liability, we make assumptions for mortality, morbidity, lapses, and the discount rate. At least annually, we update our estimate of the liability with actual experience and review our cash flow assumptions. The updated liability is discounted at the original discount rate at contract inception, and the change in the balance is recognized as a remeasurement gain or loss and included in Insurance policy benefits and claims in our consolidated statements of operations. The discount rate assumption is the equivalent of an upper-medium grade fixed-income instrument yield. To determine the original discount rate at contract inception, we use a weighted average rate based on a forward yield curve over the contract issue year. At each reporting period, the liability is remeasured using the current discount rate and the change in the liability due to the discount rate is recognized in Accumulated other comprehensive income (loss) in our consolidated balance sheets. Financial Instruments In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables. We adopted the amendments in this ASU as of January 1, 2023 using the modified retrospective transition method. Upon adoption, we recorded a decrease to the allowance for finance receivable losses of $16 million, a decrease to deferred tax assets of $4 million and a one-time corresponding cumulative increase to retained earnings, net of tax, of $12 million in our consolidated balance sheets as of January 1, 2023. As a result of the adoption of ASU 2022-02, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for the updated significant accounting policies as of January 1, 2023. Troubled Debt Restructured Finance Receivables ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. As a result of the adoption of this ASU, the accounting for TDRs is no longer applicable for periods beginning on or after January 1, 2023. Modified Finance Receivables to Borrowers Experiencing Financial Difficulty We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, participating in a counseling or settlement arrangement, or are in bankruptcy. When we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties, we classify that receivable as a modified finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce the interest rate, extend the term, defer or forgive past due interest, or forgive principal. As part of the modification, we may require qualifying payments before the accounts are generally brought current for delinquency reporting. In addition, for principal forgiveness, we may require future payment performance by the borrower under the modified terms before the balances are contractually forgiven. We fully reserve for any potential principal forgiveness in our allowance for finance receivable losses. Account modifications that are deemed to be a modified finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by level of contractual delinquency in the portfolio, specifically in the late-stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. We estimate the allowance for finance receivable losses primarily 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. 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. 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. We also consider key economic trends including unemployment rates. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. 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 charge amounts previously accrued after four contractual payments become past due. For credit cards, we measure an allowance on uncollected finance charges, but do not measure an allowance on the unfunded portion of the credit card lines as the accounts are unconditionally cancellable. 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. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning. We generally charge off to the allowance for finance receivable losses on personal loans and credit cards that are beyond seven payments (approximately 180 days) past due. Exceptions include accounts in bankruptcy, which are generally charged off at the earlier of notice of discharge or when the customer becomes seven payments past due, and accounts of deceased borrowers, which are generally charged off at the time of notice. Generally, we start repossession of any titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge off prior to the account becoming seven payments (approximately 180 days) past due. We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. See Notes 3 and 4 for additional information on the adoption of ASU 2022-02.
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Finance Receivables |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Receivables |
Our finance receivables consist of personal loans and credit cards. Personal loans are non-revolving, with a fixed rate, have fixed terms generally between and six years, and are secured by automobiles, other titled collateral, or are unsecured. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured. Components of our net finance receivables were as follows:
* Personal loan gross finance receivables equal the unpaid principal balance. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the principal balance and billed interest and fees. 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 combined total of $135 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest. These unsecured personal loans are derecognized from our balance sheet at the time of sale. We service the personal loans sold and are entitled to a servicing fee and other fees commensurate with the services performed as part of the agreements. The gain on sales and servicing fees are recorded in Other revenues in our condensed consolidated statements of operations. We sold $135 million and $315 million of gross finance receivables during the three and six months ended June 30, 2023, respectively, and $180 million and $360 million of gross finance receivables during the three and six months ended June 30, 2022, respectively. The gain on the sales were $13 million and $31 million during the three and six months ended June 30, 2023, respectively, and $16 million and $33 million during the three and six months ended June 30, 2022, respectively. CREDIT QUALITY INDICATOR We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio. When personal loans are 60 days contractually 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. We consider our personal loans to be nonperforming at 90 days or more contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. For our personal loans, we reversed net accrued finance charges of $32 million and $69 million during the three and six months ended June 30, 2023, respectively, and $27 million and $54 million during the three and six months ended June 30, 2022, respectively. Finance charges recognized from the contractual interest portion of payments received on nonaccrual personal loans totaled $5 million and $10 million during the three and six months ended June 30, 2023, respectively, and $4 million and $8 million during the three and six months ended June 30, 2022, respectively. All personal loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses. We accrue finance charges and fees on credit cards until charge-off at approximately 180 days past due, at which point we reverse finance charges and fees previously accrued. For credit cards, net accrued finance charges and fees reversed for the three and six months ended June 30, 2023 and 2022 were immaterial. The following tables below are a summary of our personal loans by the year of origination and number of days delinquent:
The following is a summary of credit cards by number of days delinquent:
There were no credit cards that were converted to term loans at June 30, 2023 or December 31, 2022. MODIFIED FINANCE RECEIVABLES TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty and when we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties, we classify that receivable as a modified finance receivable. The following tables below represent information regarding modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02. The period-end carrying value of finance receivables modified during the period were as follows:
The financial effect of loan modifications made during the period were as follows:
The performance of modified finance receivables by delinquency status was as follows:
* Excludes $10 million of modified finance receivables that subsequently charged off. The period-end carrying value of modified finance receivables for which there was a default during the period to cause the modified finance receivable to be considered nonperforming (90 days or more past due) were as follows:
See Notes 2 and 4 for additional information on the adoption of ASU 2022-02. TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES PRIOR TO ADOPTION OF ASU 2022-02 ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. Due to the adoption of this ASU, the following disclosures related to troubled debt restructuring finance receivables are no longer applicable for reporting periods beginning in 2023. Information regarding TDR finance receivables were as follows:
* TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs. There were no credit cards classified as TDR finance receivables at December 31, 2022. Information regarding the new volume of the TDR finance receivables were as follows:
* “Other” modifications primarily consist of loans with both rate reductions and the potential of principal forgiveness contingent on future payment performance by the borrower under the modified terms. Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table:
* Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. UNFUNDED LENDING COMMITMENTS Our unfunded lending commitments consist of the unused credit card lines, which are unconditionally cancellable. We do not anticipate that all of our customers will access their entire available line at any given point in time. The unused credit card lines totaled $149 million at June 30, 2023 and $81 million at December 31, 2022.
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Allowance for Finance Receivable Losses |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Finance Receivable Losses |
We establish an allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by the level of contractual delinquency in the portfolio, specifically in the late-stage delinquency buckets and inclusive of the migration of the finance receivables through the delinquency buckets. We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions. Our methodology to estimate expected credit losses uses recent macroeconomic forecasts, which include forecasts for unemployment. We leverage projections from various industry leading providers. We also consider inflationary pressures, consumer confidence levels, and interest rate increases that may continue to impact the economic outlook. At June 30, 2023, our economic forecast used a reasonable and supportable period of 12 months. The increase in our allowance for finance receivable losses for the three and six months ended June 30, 2023 was primarily due to the growth in our loan portfolio. We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses. Changes in the allowance for finance receivable losses were as follows:
* As a result of the adoption of ASU 2022-02, we recorded a one-time adjustment to the allowance for finance receivable losses. See Notes 2 and 3 for additional information on the adoption of ASU 2022-02.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities |
AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows:
* The allowance for credit losses related to our investment securities as of June 30, 2023 and December 31, 2022 was immaterial. Interest receivables reported in Other assets in our condensed consolidated balance sheets totaled $14 million as of June 30, 2023 and December 31, 2022. There were no material amounts reversed from investment revenue for available-for-sale securities for the three and six months ended June 30, 2023 and 2022. Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows:
On a lot basis, we had 2,191 and 2,280 investment securities in an unrealized loss position at June 30, 2023 and December 31, 2022, respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, as of June 30, 2023, there were no credit impairments on investment securities that we intend to sell. We do not have plans to sell any of the remaining investment securities with unrealized losses as of June 30, 2023, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential credit impairments. During the three and six months ended June 30, 2023 and 2022, there were no material credit impairments related to our investment securities. Therefore, there were no material additions or reductions in the allowance for credit losses (impairments recognized or reversed in earnings) on credit impaired available-for-sale securities for the three and six months ended June 30, 2023 and 2022. The proceeds of available-for-sale securities sold or redeemed during the three and six months ended June 30, 2023 totaled $21 million and $47 million, respectively. The proceeds of available-for-sale securities sold or redeemed during the three and six months ended June 30, 2022 totaled $38 million and $201 million, respectively. The net realized gains and losses were immaterial during the three and six months ended June 30, 2023 and 2022. Contractual maturities of fixed-maturity available-for-sale securities at June 30, 2023 were as follows:
Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies. The fair value of securities on deposit with third parties totaled $512 million and $532 million at June 30, 2023 and December 31, 2022, respectively. OTHER SECURITIES The fair value of other securities by type was as follows:
* We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. Net unrealized gains and losses on other securities held were immaterial for the three and six months ended June 30, 2023 and 2022. Net realized gains and losses on other securities sold or redeemed were immaterial for the three and six months ended June 30, 2023 and 2022. Other securities primarily consist of equity securities and those securities for which the fair value option was elected. We report net unrealized and realized gains and losses on other securities held, sold, or redeemed in investment revenue.
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Long-term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt |
Principal maturities of long-term debt by type of debt at June 30, 2023 were as follows:
(a) Pursuant to the Base Indenture, the Supplemental Indentures, and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at June 30, 2023. (c) Securitizations and private secured term funding are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At June 30, 2023, there were no amounts drawn under our revolving conduit facilities. See Note 7 for further information on our long-term debt associated with securitizations, private secured term funding, and revolving conduit facilities. (d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities and unsecured corporate revolver, which totaled $33 million at June 30, 2023 and are reported in Other assets in our condensed consolidated balance sheets. UNSECURED CORPORATE REVOLVER At June 30, 2023, the total maximum borrowing capacity of our unsecured corporate revolver was $1.25 billion. The corporate revolver has a five-year term beginning October 25, 2021, during which draws and repayments may occur. Any outstanding principal balance is due and payable on October 25, 2026. At June 30, 2023, no amounts were drawn under this facility.
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Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities |
CONSOLIDATED VIES We have transferred finance receivables to VIEs for asset-backed financing transactions and include the assets and liabilities in our condensed consolidated financial statements because we are the primary beneficiary of each VIE. We account for these asset-backed debt obligations as securitized borrowings. See Note 2 and Note 9 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for more detail regarding VIEs. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities when its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts, private secured term funding, and revolving conduit facilities were as follows:
Other than the retained subordinate and residual interests in our consolidated VIEs, we are under no further obligation than is otherwise noted herein, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $114 million and $215 million during the three and six months ended June 30, 2023 respectively, compared to $68 million and $133 million during the three and six months ended June 30, 2022, respectively. SECURITIZED BORROWINGS Each of our outstanding securitizations contain a revolving period ranging from to seven years during which no principal payments are required to be made on the related asset-backed notes. The indentures governing our securitized borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes. PRIVATE SECURED TERM FUNDING At June 30, 2023, an aggregate amount of $350 million was outstanding under the private secured term funding collateralized by our personal loans. No principal payments are required to be made until after April 25, 2025, followed by a subsequent one-year amortization period, at the expiration of which the outstanding principal amount is due and payable. REVOLVING CONDUIT FACILITIES We had access to 15 revolving conduit facilities with a total maximum borrowing capacity of $6.2 billion as of June 30, 2023. Our conduit facilities contain revolving periods during which time no principal payments are required, but may be made without penalty, followed by a subsequent amortization period. Principal balances of outstanding loans, if any, are due and payable in full over periods ranging up to ten years as of June 30, 2023. Amounts drawn on these facilities are collateralized by our personal loans. At June 30, 2023, no amounts were drawn under these facilities.
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Insurance |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance |
Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables) on our short-duration insurance contracts:
(a) As a result of the modified retrospective adoption of ASU 2018-12, we have recorded a $16 million reduction to the 2022 beginning balance, and the previously reported balances were recast to exclude reserves for unpaid claims on our long-duration contracts. These reserves have been included in our estimate of the liability for future policy benefits as of the transition date of January 1, 2021. See Note 2 for additional information on the adoption of ASU 2018-12. (b) At June 30, 2023, $2 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit disability claims during the period. At June 30, 2022, $9 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit life and credit disability claims during the period. LIABILITY FOR FUTURE POLICY BENEFITS The present value of expected net premiums on long-duration insurance contracts were as follows:
The present value of expected future policy benefits on long-duration insurance contracts were as follows:
The net liability for future policy benefits on long-duration insurance contracts were as follows:
The weighted-average duration of the liability for future policy benefits was 8 years at June 30, 2023 and June 30, 2022. The following table reconciles the net liability for future policy benefits to Insurance claims and policyholder liabilities in the condensed consolidated balance sheets:
* Other primarily includes reserves for short-duration contracts that are payable to third-party beneficiaries. The undiscounted and discounted expected future gross premiums and expected future benefits and expenses for our long-duration insurance contracts were as follows:
The revenue and interest accretion related to our long-duration insurance contracts recognized in the condensed consolidated statements of operations were as follows:
The expected and actual experience for mortality, morbidity, and lapses of the liability for future policy benefits were as follows:
The weighted-average interest rates for the liability of future policy benefits for our long-duration insurance contracts were as follows:
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Capital Stock and Earnings Per Share (OMH Only) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock and Earnings Per Share (OMH Only) |
CAPITAL STOCK OMH has two classes of authorized capital stock: preferred stock and common stock. OMFC has two classes of authorized capital stock: special stock and common stock. OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance. Changes in OMH shares of common stock issued and outstanding were as follows:
EARNINGS PER SHARE (OMH ONLY) The computation of earnings per share was as follows:
* We have excluded weighted-average unvested restricted stock units totaling 1,607,851 and 1,389,727 for the three months ended June 30, 2023 and 2022, respectively, and 1,590,009 and 1,333,338 for the six months ended June 30, 2023 and 2022, respectively, from the fully-diluted earnings per share calculations as these shares would be anti-dilutive, which could impact the earnings per share calculation in the future. Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested restricted stock units.
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Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) |
Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:
(a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three and six months ended June 30, 2023 and 2022. (b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges. Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were immaterial for the three and six months ended June 30, 2023 and 2022.
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Income Taxes |
6 Months Ended | ||||||
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Jun. 30, 2023 | |||||||
Income Tax Disclosure [Abstract] | |||||||
Income Taxes |
We had a net deferred tax asset of $462 million and $456 million at June 30, 2023 and December 31, 2022, respectively. We follow the guidance of ASC 740, Income Taxes, for interim reporting of income taxes under which we calculate an estimated annual effective tax rate (“AETR”) and apply the AETR to our year-to-date income (loss) before income taxes. In addition, we recognize any discrete items as they occur. The effective tax rate for the six months ended June 30, 2023 was 24.5%, compared to 24.6% for the same period in 2022. The effective tax rate for the six months ended June 30, 2023 and 2022 differed from the federal statutory rate of 21% primarily due to the effect of state income taxes. We are under examination by various states for the years 2017 to 2020. Management believes it has adequately provided for taxes for such years. Our gross unrecognized tax benefits, including related interest and penalties, totaled $6 million at June 30, 2023 and December 31, 2022. We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our condensed consolidated financial statements.
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Contingencies |
6 Months Ended | ||||||
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Jun. 30, 2023 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
Contingencies |
LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions, and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Additionally, we are, from time to time, in the normal course of business, subject to inquiries and investigations by federal, state and local governmental authorities regarding our products and our operations. These inquiries and investigations may result in fines, restitution or other penalties, including injunctive relief that may result in restrictions on our business. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the condensed consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or range of additional loss can be reasonably estimated for any given action. For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our condensed consolidated financial statements as a whole. In March 2022, the staff of the United States Consumer Financial Protection Bureau (“CFPB”) notified us that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, it is considering recommending that the CFPB take legal action against the Company in connection with alleged violations of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531, 5536. On May 31, 2023, the Company entered into a consent order with the CFPB to resolve this previously disclosed investigation focused on certain refunding practices for optional insurance and membership plan products that were subsequently canceled by the customer after purchase. Pursuant to the consent order, we agreed to issue $10 million in interest refunds to affected customers, pay a $10 million civil penalty and make certain other enhancements to our sales and refunding practices.
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Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
At June 30, 2023, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans. The accounting policies of the C&I segment are the same as those disclosed in Note 2 and Note 17 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report. The following tables present information about C&I and Other, as well as reconciliations to the condensed consolidated financial statement amounts.
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Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
The accounting policies of our fair value measurements are the same as those disclosed in Note 2 and Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report. The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
*Other assets at June 30, 2023 and December 31, 2022 primarily consists of finance receivables held for sale. FAIR VALUE MEASUREMENTS — RECURRING BASIS The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:
Due to the insignificant activity within the Level 3 assets during the three and six months ended June 30, 2023 and 2022, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial during the three and six months ended June 30, 2023 and 2022. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS See Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for information regarding our methods and assumptions used to estimate fair value.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net income | $ 103 | $ 208 | $ 282 | $ 511 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business and Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. |
CONSOLIDATION | The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.We eliminated all material intercompany accounts and transactions. |
USE OF ESTIMATES | We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. |
ACCOUNTING PRONUNCEMENTS RECENTLY ADOPTED | Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The ASU requires the assumptions used to measure the liability for future policy benefits to be updated at least annually. The guidance prescribes the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income. The amendments in this ASU became effective for the Company beginning January 1, 2023 and we adopted using the modified retrospective transition method. This ASU required a transition date of January 1, 2021 and resulted in recasting prior periods. As a result of the adoption of ASU 2018-12, our significant accounting policy related to long-duration insurance contracts for policy and claim reserves has changed to reflect the requirements of the new standard. See below for the updated significant accounting policy as of the transition date of January 1, 2021. Policy and Claim Reserves Policy reserves are established for our long-duration contracts. The liability for future policy benefits is the present value of estimated future policy benefits to be paid to or on behalf of policyholders less the present value of estimated future net premiums to be collected from policyholders. To estimate the liability, we make assumptions for mortality, morbidity, lapses, and the discount rate. At least annually, we update our estimate of the liability with actual experience and review our cash flow assumptions. The updated liability is discounted at the original discount rate at contract inception, and the change in the balance is recognized as a remeasurement gain or loss and included in Insurance policy benefits and claims in our consolidated statements of operations. The discount rate assumption is the equivalent of an upper-medium grade fixed-income instrument yield. To determine the original discount rate at contract inception, we use a weighted average rate based on a forward yield curve over the contract issue year. At each reporting period, the liability is remeasured using the current discount rate and the change in the liability due to the discount rate is recognized in Accumulated other comprehensive income (loss) in our consolidated balance sheets. Financial Instruments In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables. We adopted the amendments in this ASU as of January 1, 2023 using the modified retrospective transition method. Upon adoption, we recorded a decrease to the allowance for finance receivable losses of $16 million, a decrease to deferred tax assets of $4 million and a one-time corresponding cumulative increase to retained earnings, net of tax, of $12 million in our consolidated balance sheets as of January 1, 2023. As a result of the adoption of ASU 2022-02, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for the updated significant accounting policies as of January 1, 2023. Troubled Debt Restructured Finance Receivables ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. As a result of the adoption of this ASU, the accounting for TDRs is no longer applicable for periods beginning on or after January 1, 2023. Modified Finance Receivables to Borrowers Experiencing Financial Difficulty We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, participating in a counseling or settlement arrangement, or are in bankruptcy. When we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties, we classify that receivable as a modified finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce the interest rate, extend the term, defer or forgive past due interest, or forgive principal. As part of the modification, we may require qualifying payments before the accounts are generally brought current for delinquency reporting. In addition, for principal forgiveness, we may require future payment performance by the borrower under the modified terms before the balances are contractually forgiven. We fully reserve for any potential principal forgiveness in our allowance for finance receivable losses. Account modifications that are deemed to be a modified finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by level of contractual delinquency in the portfolio, specifically in the late-stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. We estimate the allowance for finance receivable losses primarily 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. 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. 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. We also consider key economic trends including unemployment rates. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. 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 charge amounts previously accrued after four contractual payments become past due. For credit cards, we measure an allowance on uncollected finance charges, but do not measure an allowance on the unfunded portion of the credit card lines as the accounts are unconditionally cancellable. 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. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning. We generally charge off to the allowance for finance receivable losses on personal loans and credit cards that are beyond seven payments (approximately 180 days) past due. Exceptions include accounts in bankruptcy, which are generally charged off at the earlier of notice of discharge or when the customer becomes seven payments past due, and accounts of deceased borrowers, which are generally charged off at the time of notice. Generally, we start repossession of any titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge off prior to the account becoming seven payments (approximately 180 days) past due. We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. See Notes 3 and 4 for additional information on the adoption of ASU 2022-02.
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Recent Accounting Pronouncements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle | The effects of the adoption of ASU 2018-12 to our condensed consolidated balance sheets were as follows:
The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of operations were as follows:
The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of comprehensive income were as follows:
The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of cash flows were as follows:
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Finance Receivables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of net finance receivables by type | Components of our net finance receivables were as follows:
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Summary of net finance receivables by type and by days delinquent | The following tables below are a summary of our personal loans by the year of origination and number of days delinquent:
The following is a summary of credit cards by number of days delinquent:
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Schedule of information regarding Modified Finance Receivables | The period-end carrying value of finance receivables modified during the period were as follows:
The financial effect of loan modifications made during the period were as follows:
The performance of modified finance receivables by delinquency status was as follows:
* Excludes $10 million of modified finance receivables that subsequently charged off. The period-end carrying value of modified finance receivables for which there was a default during the period to cause the modified finance receivable to be considered nonperforming (90 days or more past due) were as follows:
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Schedule of TDR finance receivables | Information regarding TDR finance receivables were as follows:
* TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs.
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Schedule of new volume of the TDR finance receivables held for investment and held for sale | Information regarding the new volume of the TDR finance receivables were as follows:
* “Other” modifications primarily consist of loans with both rate reductions and the potential of principal forgiveness contingent on future payment performance by the borrower under the modified terms.
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Net finance receivables that were modified as TDR finance receivables defaulted within the previous 12 months nonperforming | Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table:
* Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.
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Allowance for Finance Receivable Losses (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses were as follows:
* As a result of the adoption of ASU 2022-02, we recorded a one-time adjustment to the allowance for finance receivable losses. See Notes 2 and 3 for additional information on the adoption of ASU 2022-02.
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Investment Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows:
* The allowance for credit losses related to our investment securities as of June 30, 2023 and December 31, 2022 was immaterial.
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Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows:
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Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at June 30, 2023 were as follows:
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Schedule of fair value of other securities by type | The fair value of other securities by type was as follows:
* We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments.
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Long-term Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of principal maturities of long-term debt | Principal maturities of long-term debt by type of debt at June 30, 2023 were as follows:
(a) Pursuant to the Base Indenture, the Supplemental Indentures, and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at June 30, 2023. (c) Securitizations and private secured term funding are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At June 30, 2023, there were no amounts drawn under our revolving conduit facilities. See Note 7 for further information on our long-term debt associated with securitizations, private secured term funding, and revolving conduit facilities. (d) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities and unsecured corporate revolver, which totaled $33 million at June 30, 2023 and are reported in Other assets in our condensed consolidated balance sheets.
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Variable Interest Entities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts, private secured term funding, and revolving conduit facilities were as follows:
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Insurance (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the reserve for unpaid claims and loss adjustment expenses | Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables) on our short-duration insurance contracts:
(a) As a result of the modified retrospective adoption of ASU 2018-12, we have recorded a $16 million reduction to the 2022 beginning balance, and the previously reported balances were recast to exclude reserves for unpaid claims on our long-duration contracts. These reserves have been included in our estimate of the liability for future policy benefits as of the transition date of January 1, 2021. See Note 2 for additional information on the adoption of ASU 2018-12. (b) At June 30, 2023, $2 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit disability claims during the period. At June 30, 2022, $9 million reflected a redundancy in the prior years’ net reserves, primarily due to favorable development of credit life and credit disability claims during the period.
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Liability for Future Policy Benefit, Activity | The present value of expected net premiums on long-duration insurance contracts were as follows:
The present value of expected future policy benefits on long-duration insurance contracts were as follows:
The undiscounted and discounted expected future gross premiums and expected future benefits and expenses for our long-duration insurance contracts were as follows:
The revenue and interest accretion related to our long-duration insurance contracts recognized in the condensed consolidated statements of operations were as follows:
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Policyholder Account Balance And Liability For Unpaid Claims And Claims Adjustment Expense | The net liability for future policy benefits on long-duration insurance contracts were as follows:
The following table reconciles the net liability for future policy benefits to Insurance claims and policyholder liabilities in the condensed consolidated balance sheets:
* Other primarily includes reserves for short-duration contracts that are payable to third-party beneficiaries.
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Fair Value Measurement Inputs and Valuation Techniques | The expected and actual experience for mortality, morbidity, and lapses of the liability for future policy benefits were as follows:
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Additional Liability, Long-Duration Insurance | The weighted-average interest rates for the liability of future policy benefits for our long-duration insurance contracts were as follows:
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Capital Stock and Earnings Per Share (OMH Only) (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in shares issued and outstanding | Changes in OMH shares of common stock issued and outstanding were as follows:
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Computation of earnings per share | The computation of earnings per share was as follows:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes, net of tax, in accumulated other comprehensive income (loss) | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows:
(a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three and six months ended June 30, 2023 and 2022. (b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges. Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were immaterial for the three and six months ended June 30, 2023 and 2022.
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information about the Company's segments | The following tables present information about C&I and Other, as well as reconciliations to the condensed consolidated financial statement amounts.
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
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Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:
|
Recent Accounting Pronouncements - Narrative (Details) $ in Millions |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
payment
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Mar. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for finance receivable | $ (2,392) | $ (2,298) | $ (2,311) | $ (2,127) | $ (2,071) | $ (2,095) |
Retained earnings | $ 2,168 | 2,119 | $ 1,995 | |||
Number of payments past due before which a loan is charged off to the allowance for finance receivable losses | payment | 7 | |||||
Number of payments past due before which a loan is charged off to the allowance for finance receivable losses, period | 180 days | |||||
Number of payments past due before repossession | payment | 2 | |||||
Number of payments past due before repossession, period | 30 days | |||||
Cumulative Effect, Period Of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for finance receivable | 16 | |||||
Deferred tax asset | 4 | |||||
Retained earnings | $ 12 |
Recent Accounting Pronouncements - Effects of Adoption To Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | $ 1,194 | $ 1,154 | $ 1,089 | $ 1,019 | $ 1,075 |
Insurance claims and policyholder liabilities | 616 | 620 | 628 | 693 | 718 |
Accumulated other comprehensive loss | (114) | (127) | (83) | 5 | 18 |
Retained earnings | 2,168 | 2,119 | 1,995 | ||
OMFC | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | 1,192 | 1,152 | 1,088 | 1,017 | |
Insurance claims and policyholder liabilities | 616 | 620 | |||
Accumulated other comprehensive loss | (114) | (127) | |||
Retained earnings | $ 1,204 | 1,193 | 1,166 | ||
Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | 1,150 | 1,085 | 1,003 | 1,054 | |
Insurance claims and policyholder liabilities | 602 | 612 | 621 | 621 | |
Accumulated other comprehensive loss | (119) | (70) | 61 | 94 | |
Retained earnings | 2,125 | 1,994 | |||
Previously Reported | OMFC | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | 1,148 | 1,084 | 1,001 | ||
Retained earnings | 1,199 | 1,165 | |||
Revision of Prior Period, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | 4 | 4 | 16 | 21 | |
Insurance claims and policyholder liabilities | 18 | 16 | 72 | 97 | |
Accumulated other comprehensive loss | (8) | (13) | (56) | $ (76) | |
Retained earnings | (6) | 1 | |||
Revision of Prior Period, Adjustment | OMFC | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | 4 | 4 | $ 16 | ||
Retained earnings | $ (6) | $ 1 |
Recent Accounting Pronouncements - Effects of Adoption To Condensed Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance policy benefits and claims | $ 44 | $ 42 | $ 91 | $ 84 |
Income before income taxes | 138 | 278 | 373 | 677 |
Income taxes | 35 | 70 | 91 | 166 |
Net income | $ 103 | $ 208 | $ 282 | $ 511 |
Basic EPS (OMH only) (in dollars per share) | $ 0.85 | $ 1.67 | $ 2.33 | $ 4.06 |
Diluted EPS (OMH only) (in dollars per share) | $ 0.85 | $ 1.67 | $ 2.33 | $ 4.05 |
OMFC | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance policy benefits and claims | $ 44 | $ 42 | $ 91 | $ 84 |
Income before income taxes | 138 | 278 | 373 | 677 |
Income taxes | 35 | 70 | 91 | 166 |
Net income | $ 103 | 208 | $ 282 | 511 |
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance policy benefits and claims | 40 | 85 | ||
Income before income taxes | 280 | 676 | ||
Income taxes | 71 | |||
Net income | $ 209 | $ 510 | ||
Basic EPS (OMH only) (in dollars per share) | $ 1.68 | $ 4.05 | ||
Diluted EPS (OMH only) (in dollars per share) | $ 1.68 | $ 4.04 | ||
Revision of Prior Period, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Insurance policy benefits and claims | $ 2 | $ (1) | ||
Income before income taxes | (2) | 1 | ||
Income taxes | (1) | |||
Net income | $ (1) | $ 1 | ||
Basic EPS (OMH only) (in dollars per share) | $ (0.01) | $ 0.01 | ||
Diluted EPS (OMH only) (in dollars per share) | $ (0.01) | $ 0.01 |
Recent Accounting Pronouncements - Effects of Adoption To Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Comprehensive income | $ 97 | $ 167 | $ 295 | $ 423 |
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Comprehensive income | 150 | 379 | ||
Revision of Prior Period, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Comprehensive income | $ 17 | $ 44 |
Recent Accounting Pronouncements - Effect of Adoption To Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income | $ 103 | $ 208 | $ 282 | $ 511 |
Deferred income tax charge (benefit) | (14) | 2 | ||
Cash flows due to changes in other assets and other liabilities | (1) | (54) | ||
OMFC | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income | $ 103 | 208 | 282 | 511 |
Deferred income tax charge (benefit) | (14) | 2 | ||
Cash flows due to changes in other assets and other liabilities | $ (1) | (53) | ||
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income | 209 | 510 | ||
Deferred income tax charge (benefit) | 1 | |||
Cash flows due to changes in other assets and other liabilities | (52) | |||
Previously Reported | OMFC | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash flows due to changes in other assets and other liabilities | (51) | |||
Revision of Prior Period, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net income | $ (1) | 1 | ||
Deferred income tax charge (benefit) | 1 | |||
Cash flows due to changes in other assets and other liabilities | (2) | |||
Revision of Prior Period, Adjustment | OMFC | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cash flows due to changes in other assets and other liabilities | $ (2) |
Finance Receivables - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Whole loan sale flow agreement, quarterly loans sold | $ 135 | $ 135 | |||
Proceeds from sale of gross finance receivables | 135 | $ 180 | 315 | $ 360 | |
Gain on sale of financing receivables | 13 | 16 | 31 | 33 | |
Unused credit card lines | $ 149 | $ 149 | $ 81 | ||
Minimum | Personal Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Finance receivables, original term | 3 years | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Whole loan sale flow agreement, commitment period | 1 year | ||||
Maximum | Personal Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Finance receivables, original term | 6 years | ||||
Unlikely to be Collected Financing Receivable | Personal Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Threshold period past due | 60 days | 60 days | |||
Nonperforming (Nonaccrual) | Personal Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Threshold period past due | 90 days | 90 days | |||
Reversal of net accrued finance charges | $ 32 | 27 | $ 69 | 54 | |
Interest income | $ 5 | $ 4 | $ 10 | $ 8 | |
Nonperforming (Nonaccrual) | Credit Cards | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Threshold period past due | 180 days | 180 days |
Finance Receivables - Net Finance Receivables by Type (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | $ 20,257 | $ 19,722 |
Unearned fees | (225) | (220) |
Accrued finance charges and fees | 283 | 299 |
Deferred origination costs | 195 | 185 |
Financing Receivable, Total | 20,510 | 19,986 |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 20,101 | 19,615 |
Unearned fees | (225) | (220) |
Accrued finance charges and fees | 283 | 299 |
Deferred origination costs | 192 | 185 |
Financing Receivable, Total | 20,351 | 19,879 |
Credit Cards | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross finance receivables | 156 | 107 |
Unearned fees | 0 | 0 |
Accrued finance charges and fees | 0 | 0 |
Deferred origination costs | 3 | 0 |
Financing Receivable, Total | $ 159 | $ 107 |
Finance Receivables - Delinquent and Nonperforming Finance Receivables, by Year of Origination (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Financing Receivable By Year Originated | |||||
Financing Receivable, Total | $ 20,510 | $ 20,510 | $ 19,986 | ||
Gross charge-offs | |||||
Financing Receivable, Gross Charge-Offs | 452 | $ 351 | 904 | $ 680 | |
Personal Loans | |||||
Financing Receivable By Year Originated | |||||
Year One | 5,976 | 5,976 | 11,002 | ||
Prior Year Two | 8,300 | 8,300 | 5,410 | ||
Prior Year Three | 3,842 | 3,842 | 1,907 | ||
Prior Year Four | 1,291 | 1,291 | 1,172 | ||
Prior Year Five | 723 | 723 | 268 | ||
Prior Year Six | 219 | 219 | 120 | ||
Financing Receivable, Total | 20,351 | 20,351 | 19,879 | ||
Gross charge-offs | |||||
Year One | 2 | ||||
Prior Year Two | 327 | ||||
Prior Year Three | 368 | ||||
Prior Year Four | 109 | ||||
Prior Year Five | 60 | ||||
Prior Year Six | 25 | ||||
Financing Receivable, Gross Charge-Offs | 446 | $ 351 | 891 | $ 680 | |
Performing | Personal Loans | |||||
Financing Receivable By Year Originated | |||||
Year One | 5,968 | 5,968 | 10,842 | ||
Prior Year Two | 8,073 | 8,073 | 5,164 | ||
Prior Year Three | 3,685 | 3,685 | 1,833 | ||
Prior Year Four | 1,245 | 1,245 | 1,128 | ||
Prior Year Five | 697 | 697 | 255 | ||
Prior Year Six | 209 | 209 | 113 | ||
Financing Receivable, Total | 19,877 | 19,877 | 19,335 | ||
Performing | Current | Personal Loans | |||||
Financing Receivable By Year Originated | |||||
Year One | 5,927 | 5,927 | 10,614 | ||
Prior Year Two | 7,810 | 7,810 | 4,927 | ||
Prior Year Three | 3,520 | 3,520 | 1,758 | ||
Prior Year Four | 1,195 | 1,195 | 1,081 | ||
Prior Year Five | 667 | 667 | 240 | ||
Prior Year Six | 196 | 196 | 105 | ||
Financing Receivable, Total | 19,315 | 19,315 | 18,725 | ||
Performing | 30-59 days past due | Personal Loans | |||||
Financing Receivable By Year Originated | |||||
Year One | 27 | 27 | 136 | ||
Prior Year Two | 156 | 156 | 136 | ||
Prior Year Three | 98 | 98 | 43 | ||
Prior Year Four | 30 | 30 | 28 | ||
Prior Year Five | 18 | 18 | 9 | ||
Prior Year Six | 8 | 8 | 5 | ||
Financing Receivable, Total | 337 | 337 | 357 | ||
Performing | 60-89 days past due | Personal Loans | |||||
Financing Receivable By Year Originated | |||||
Year One | 14 | 14 | 92 | ||
Prior Year Two | 107 | 107 | 101 | ||
Prior Year Three | 67 | 67 | 32 | ||
Prior Year Four | 20 | 20 | 19 | ||
Prior Year Five | 12 | 12 | 6 | ||
Prior Year Six | 5 | 5 | 3 | ||
Financing Receivable, Total | 225 | 225 | 253 | ||
Nonperforming (Nonaccrual) | 90+ days past due | Personal Loans | |||||
Financing Receivable By Year Originated | |||||
Year One | 8 | 8 | 160 | ||
Prior Year Two | 227 | 227 | 246 | ||
Prior Year Three | 157 | 157 | 74 | ||
Prior Year Four | 46 | 46 | 44 | ||
Prior Year Five | 26 | 26 | 13 | ||
Prior Year Six | 10 | 10 | 7 | ||
Financing Receivable, Total | $ 474 | $ 474 | $ 544 |
Finance Receivables - Summary of Credit Cards by Number of Days Delinquent (Details) - Credit Cards - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Delinquency by finance receivables type | ||
Financing receivable | $ 159 | $ 107 |
Current | ||
Delinquency by finance receivables type | ||
Financing receivable | 142 | 93 |
30-59 days past due | ||
Delinquency by finance receivables type | ||
Financing receivable | 4 | 3 |
60-89 days past due | ||
Delinquency by finance receivables type | ||
Financing receivable | 4 | 3 |
90+ days past due | ||
Delinquency by finance receivables type | ||
Financing receivable | $ 9 | $ 8 |
Finance Receivables - Modified Financing Receivables To Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Financing Receivable, Modified [Line Items] | ||
Modifications as a percent of net finance receivables - personal loans | 1.18% | 2.19% |
Personal Loans | ||
Financing Receivable, Modified [Line Items] | ||
Modifications to borrowers experiencing financial difficulties | $ 240 | $ 446 |
Personal Loans | Interest rate reduction and term extension | ||
Financing Receivable, Modified [Line Items] | ||
Modifications to borrowers experiencing financial difficulties | 143 | 259 |
Personal Loans | Interest rate reduction and principal forgiveness | ||
Financing Receivable, Modified [Line Items] | ||
Modifications to borrowers experiencing financial difficulties | $ 97 | $ 187 |
Finance Receivables - Modified Financing Receivables Financial Effects (Details) - Personal Loans - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Financing Receivable, Modified [Line Items] | ||
Weighted-average interest rate reduction | 19.89% | 20.46% |
Weighted-average term extension (months) | 26 months | 23 months |
Principal/interest forgiveness | $ 9 | $ 22 |
Finance Receivables - Modified Financing Receivables Days Delinquent (Details) - Personal Loans $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Financing Receivable, Modified [Line Items] | |
Modified financing receivables | $ 446 |
Finance receivables subsequently charged off | 10 |
Current | |
Financing Receivable, Modified [Line Items] | |
Modified financing receivables | 335 |
30-59 days past due | |
Financing Receivable, Modified [Line Items] | |
Modified financing receivables | 43 |
60-89 days past due | |
Financing Receivable, Modified [Line Items] | |
Modified financing receivables | 28 |
90+ days past due | |
Financing Receivable, Modified [Line Items] | |
Modified financing receivables | $ 40 |
Finance Receivables - Modified Finance Receivables, Nonperforming (Details) - Personal Loans - Nonperforming (Nonaccrual) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Financing Receivable, Modified [Line Items] | ||
Modified finance receivables | $ 13 | $ 13 |
Interest rate reduction and term extension | ||
Financing Receivable, Modified [Line Items] | ||
Modified finance receivables | 11 | 11 |
Interest rate reduction and principal forgiveness | ||
Financing Receivable, Modified [Line Items] | ||
Modified finance receivables | $ 2 | $ 2 |
Finance Receivables - TDR Finance Receivables (Details) - Personal Loans $ in Millions |
Dec. 31, 2022
USD ($)
|
---|---|
Financing Receivable, Modified [Line Items] | |
TDR gross finance receivables | $ 898 |
TDR net finance receivables | 904 |
Allowance for TDR finance receivable losses | $ 369 |
Finance Receivables - New Volume of TDR HFI & HFS Finance Receivables (Details) - Personal Loans $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2022
USD ($)
account
|
Jun. 30, 2021
USD ($)
account
|
|
Financing Receivable, Modified [Line Items] | ||
Pre-modification TDR net finance receivables | $ 143 | $ 276 |
Total post-modification TDR net finance receivables | $ 143 | $ 276 |
Number of TDR accounts | account | 17,516 | 33,681 |
Rate reduction | ||
Financing Receivable, Modified [Line Items] | ||
Total post-modification TDR net finance receivables | $ 84 | $ 170 |
Other | ||
Financing Receivable, Modified [Line Items] | ||
Total post-modification TDR net finance receivables | $ 59 | $ 106 |
Finance Receivables - Modified as TDR - Non Performing Finance Receivables (Details) - Personal Loans $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2022
USD ($)
account
|
Jun. 30, 2022
USD ($)
account
|
|
Delinquency by finance receivables type | ||
TDR net finance receivables | $ | $ 30 | $ 59 |
Number of TDR accounts | account | 3,762 | 7,558 |
Allowance for Finance Receivable Losses - Changes in Allowance by Type (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Changes in allowance for finance receivable losses | ||||
Balance at beginning of period | $ 2,298 | $ 2,071 | $ 2,311 | $ 2,095 |
Provision for finance receivable losses | 479 | 339 | 865 | 577 |
Charge-offs | (452) | (351) | (904) | (680) |
Recoveries | 67 | 68 | 136 | 135 |
Balance at end of period | 2,392 | 2,127 | 2,392 | 2,127 |
Cumulative Effect, Period Of Adoption, Adjustment | ||||
Changes in allowance for finance receivable losses | ||||
Balance at beginning of period | (16) | |||
Personal Loans | ||||
Changes in allowance for finance receivable losses | ||||
Balance at beginning of period | 2,275 | 2,061 | 2,290 | 2,090 |
Provision for finance receivable losses | 464 | 337 | 841 | 570 |
Charge-offs | (446) | (351) | (891) | (680) |
Recoveries | 67 | 68 | 136 | 135 |
Balance at end of period | 2,360 | 2,115 | 2,360 | 2,115 |
Personal Loans | Cumulative Effect, Period Of Adoption, Adjustment | ||||
Changes in allowance for finance receivable losses | ||||
Balance at beginning of period | (16) | |||
Credit Cards | ||||
Changes in allowance for finance receivable losses | ||||
Balance at beginning of period | 23 | 10 | 21 | 5 |
Provision for finance receivable losses | 15 | 2 | 24 | 7 |
Charge-offs | (6) | 0 | (13) | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | $ 32 | $ 12 | 32 | $ 12 |
Credit Cards | Cumulative Effect, Period Of Adoption, Adjustment | ||||
Changes in allowance for finance receivable losses | ||||
Balance at beginning of period | $ 0 |
Investment Securities - Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | $ 1,797 | $ 1,897 |
Unrealized Gains | 3 | 1 |
Unrealized Losses | (160) | (169) |
Fair Value | 1,640 | 1,729 |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 13 | 17 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 12 | 16 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 75 | 74 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | (7) | (8) |
Fair Value | 69 | 66 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 42 | 55 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 42 | 55 |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 155 | 150 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (8) | (8) |
Fair Value | 147 | 142 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1,174 | 1,251 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | (109) | (115) |
Fair Value | 1,067 | 1,137 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 207 | 217 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (25) | (25) |
Fair Value | 182 | 192 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 37 | 38 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (3) |
Fair Value | 34 | 35 |
CDO/ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 94 | 95 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (7) | (9) |
Fair Value | $ 87 | $ 86 |
Investment Securities - Additional Information (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
investment
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
investment
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
investment
|
|
Investments, Debt and Equity Securities [Abstract] | |||||
Interest receivable | $ 14 | $ 14 | $ 14 | ||
Investment securities in an unrealized loss position | investment | 2,191 | 2,191 | 2,280 | ||
Proceeds from sales and redemptions | $ 21 | $ 38 | $ 47 | $ 201 | |
Securities on deposit with third parties | $ 512 | $ 512 | $ 532 |
Investment Securities - Fair Value and Unrealized Losses on AFS Investment Securities (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value | ||
Less Than 12 Months | $ 380 | $ 1,164 |
12 Months or Longer | 1,145 | 468 |
Total | 1,525 | 1,632 |
Unrealized Losses | ||
Less Than 12 Months | (11) | (76) |
12 Months or Longer | (149) | (93) |
Total | (160) | (169) |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 6 | 10 |
12 Months or Longer | 6 | 6 |
Total | 12 | 16 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | (1) | (1) |
Total | (1) | (1) |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 12 | 48 |
12 Months or Longer | 52 | 15 |
Total | 64 | 63 |
Unrealized Losses | ||
Less Than 12 Months | (1) | (5) |
12 Months or Longer | (6) | (3) |
Total | (7) | (8) |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 39 | 51 |
12 Months or Longer | 0 | 0 |
Total | 39 | 51 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 38 | 104 |
12 Months or Longer | 93 | 32 |
Total | 131 | 136 |
Unrealized Losses | ||
Less Than 12 Months | (1) | (3) |
12 Months or Longer | (7) | (5) |
Total | (8) | (8) |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 234 | 779 |
12 Months or Longer | 768 | 299 |
Total | 1,002 | 1,078 |
Unrealized Losses | ||
Less Than 12 Months | (7) | (54) |
12 Months or Longer | (102) | (61) |
Total | (109) | (115) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 44 | 106 |
12 Months or Longer | 128 | 68 |
Total | 172 | 174 |
Unrealized Losses | ||
Less Than 12 Months | (2) | (9) |
12 Months or Longer | (23) | (16) |
Total | (25) | (25) |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 5 | 21 |
12 Months or Longer | 29 | 13 |
Total | 34 | 34 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (2) |
12 Months or Longer | (3) | (1) |
Total | (3) | (3) |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 2 | 45 |
12 Months or Longer | 69 | 35 |
Total | 71 | 80 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (3) |
12 Months or Longer | (7) | (6) |
Total | $ (7) | $ (9) |
Investment Securities - Contractual Maturities of AFS Investment Securities (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | $ 170 | |
Due after 1 year through 5 years | 534 | |
Due after 5 years through 10 years | 506 | |
Due after 10 years | 127 | |
Mortgage-backed, asset-backed, and collateralized securities | 303 | |
Fair Value | 1,640 | $ 1,729 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | 172 | |
Due after 1 year through 5 years | 567 | |
Due after 5 years through 10 years | 571 | |
Due after 10 years | 149 | |
Mortgage-backed, asset-backed, and collateralized securities | 338 | |
Cost/ Amortized Cost | $ 1,797 | $ 1,897 |
Investment Securities - Fair Value of Other Securities (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | $ 21 | $ 23 |
Total | 70 | 71 |
Preferred stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | 16 | 15 |
Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 33 | $ 33 |
Long-term Debt - Principal Maturities of Long-Term Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Principal maturities of long-term debt by type of debt | ||
Remainder of 2023 | $ 226 | |
2024 | 1,179 | |
2025 | 1,249 | |
2026 | 1,600 | |
2027 | 750 | |
2028-2067 | 3,782 | |
Secured | 10,689 | |
Total principal maturities | 19,475 | |
Long-term debt | 19,195 | $ 18,281 |
Debt issuance costs | (102) | |
Securitizations | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028-2067 | 0 | |
Secured | 10,339 | |
Total principal maturities | 10,339 | |
Long-term debt | 10,293 | |
Debt issuance costs | $ (42) | |
Securitizations | Minimum | ||
Long-term debt | ||
Interest rate | 0.87% | |
Securitizations | Maximum | ||
Long-term debt | ||
Interest rate | 7.49% | |
Private Secured Term Funding | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2023 | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028-2067 | 0 | |
Secured | 350 | |
Total principal maturities | 350 | |
Long-term debt | 350 | |
Debt issuance costs | $ (1) | |
Private Secured Term Funding | Minimum | ||
Long-term debt | ||
Interest rate | 5.99% | |
Unsecured Notes | Unsecured Notes | ||
Principal maturities of long-term debt by type of debt | ||
Remainder of 2023 | $ 226 | |
2024 | 1,179 | |
2025 | 1,249 | |
2026 | 1,600 | |
2027 | 750 | |
2028-2067 | 3,432 | |
Total principal maturities | 8,436 | |
Long-term debt | 8,380 | |
Debt issuance costs | $ (59) | |
Unsecured Notes | Unsecured Notes | Minimum | ||
Long-term debt | ||
Interest rate | 3.50% | |
Unsecured Notes | Unsecured Notes | Maximum | ||
Long-term debt | ||
Interest rate | 9.00% | |
Unsecured Notes | Revolving Conduit Facilities | ||
Principal maturities of long-term debt by type of debt | ||
Debt issuance costs | $ 33 | |
Junior Subordinated Debt | ||
Long-term debt | ||
Interest rate | 7.01% | |
Principal maturities of long-term debt by type of debt | ||
Remainder of 2023 | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028-2067 | 350 | |
Total principal maturities | 350 | |
Long-term debt | 172 | |
Debt issuance costs | $ 0 |
Long-term Debt- Narrative (Details) - Revolver - Securitizations - OMFC - USD ($) |
Oct. 25, 2021 |
Jun. 30, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Total borrowing capacity | $ 1,250,000,000 | |
Debt instrument, term | 5 years | |
Outstanding balance | $ 0 |
Variable Interest Entities - Carrying Amount of Consolidated VIEs (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|---|---|
Variable Interest Entity [Line Items] | |||||||
Cash and cash equivalents | $ 1,021 | $ 498 | $ 526 | ||||
Net finance receivables | 20,510 | 19,986 | |||||
Allowance for finance receivable losses | 2,392 | $ 2,298 | 2,311 | 2,127 | $ 2,071 | $ 2,095 | |
Restricted cash and restricted cash equivalents | 532 | 461 | 534 | ||||
Other assets | 1,194 | 1,154 | $ 1,089 | $ 1,019 | $ 1,075 | ||
Long-term debt | 19,195 | 18,281 | |||||
Consolidated VIEs | |||||||
Variable Interest Entity [Line Items] | |||||||
Cash and cash equivalents | 2 | 2 | |||||
Net finance receivables | 11,807 | 10,432 | |||||
Allowance for finance receivable losses | 1,300 | 1,126 | |||||
Restricted cash and restricted cash equivalents | 505 | 442 | |||||
Other assets | 30 | 28 | |||||
Long-term debt | 10,643 | 9,361 | |||||
Other liabilities | $ 23 | $ 20 |
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 244 | $ 219 | $ 482 | $ 438 |
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 114 | $ 68 | $ 215 | $ 133 |
Variable Interest Entities - Securitized Borrowings (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Minimum | |
Debt Instrument [Line Items] | |
Revolving period | 2 years |
Maximum | |
Debt Instrument [Line Items] | |
Revolving period | 7 years |
Variable Interest Entities - Private Secured Term Funding (Details) - Private Secured Term Funding - Consolidated VIEs |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Debt Instrument [Line Items] | |
Debt instrument, principal amount | $ 350,000,000 |
Payments required in first 3 years | $ 0 |
Amortization period after first 3 years | 1 year |
Variable Interest Entities - Revolving Conduit Facilities (Details) - Consolidated VIEs - Securitizations $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
facility
| |
Line of Credit Facility [Line Items] | |
Number of conduit facilities | facility | 15 |
Total borrowing capacity | $ 6,200 |
Debt instrument, term | 10 years |
Amounts drawn | $ 0 |
Insurance - Changes in the Reserve for Unpaid Claims and Loss Adjustment Expenses (Details) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Liability for unpaid claims and claims adjustment expense | ||||
Balance at beginning of period | $ 93 | $ 102 | ||
Less reinsurance recoverables | (3) | (3) | $ (3) | $ (3) |
Net balance at beginning of period | 90 | 99 | ||
Additions for losses and loss adjustment expenses incurred to: | ||||
Current year | 83 | 82 | ||
Prior years | (2) | (9) | ||
Total | 81 | 73 | ||
Reductions for losses and loss adjustment expenses paid related to: | ||||
Current year | (38) | (35) | ||
Prior years | (40) | (39) | ||
Total | (78) | (74) | ||
Net balance at end of period | 93 | 98 | ||
Plus reinsurance recoverables | 3 | 3 | $ 3 | $ 3 |
Balance at end of period | $ 96 | 101 | ||
Revision of Prior Period, Adjustment | ||||
Liability for unpaid claims and claims adjustment expense | ||||
Balance at beginning of period | $ 16 |
Insurance - Present Value of Expected Net Premium And Future Policy Benefits (Details) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Term and Whole Life | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Balance at beginning of period | $ 252 | $ 313 | ||
Beginning balance at original discount rate | 244 | 260 | ||
Effect of actual variances from expected experience | $ (8) | $ 13 | ||
Adjusted balance at beginning of period | 236 | 273 | ||
Interest accretion | 6 | 7 | ||
Net premiums collected | (15) | (17) | ||
Ending balance at original discount rate | 227 | 263 | ||
Effect of changes in discount rate assumptions | 2 | 14 | 8 | 53 |
Balance at ending of period | 229 | 277 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance at ending of period | 483 | 601 | ||
Beginning balance at original discount rate | 443 | 487 | ||
Effect of actual variances from expected experience | (5) | 14 | ||
Adjusted balance at beginning of period | 461 | 506 | ||
Net issuances | 2 | 2 | ||
Interest accretion | 10 | 12 | ||
Benefit payments | (30) | (33) | ||
Ending balance at original discount rate | 466 | 492 | ||
Effect of changes in discount rate assumptions | (7) | (29) | (17) | (109) |
Balance at ending of period | 450 | 516 | ||
Accidental Death and Disability Protection | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Balance at beginning of period | 48 | 69 | ||
Beginning balance at original discount rate | 48 | 59 | ||
Effect of actual variances from expected experience | (2) | (2) | ||
Adjusted balance at beginning of period | 46 | 57 | ||
Interest accretion | 1 | 0 | ||
Net premiums collected | (3) | (3) | ||
Ending balance at original discount rate | 44 | 54 | ||
Effect of changes in discount rate assumptions | (1) | 1 | 0 | 10 |
Balance at ending of period | 43 | 55 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance at ending of period | 126 | 165 | ||
Beginning balance at original discount rate | 120 | 131 | ||
Effect of actual variances from expected experience | 0 | (3) | ||
Adjusted balance at beginning of period | 125 | 135 | ||
Net issuances | 0 | 0 | ||
Interest accretion | 3 | 3 | ||
Benefit payments | (8) | (7) | ||
Ending balance at original discount rate | 125 | 138 | ||
Effect of changes in discount rate assumptions | 2 | (4) | $ (1) | $ (27) |
Balance at ending of period | $ 118 | $ 135 |
Insurance - Net Liability for Future Policy Benefits (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Term and Whole Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Net liability for future policy benefits | $ 221 | $ 239 |
Deferred profit liability | 15 | 16 |
Total net liability for future policy benefits | 236 | 255 |
Accidental Death and Disability Protection | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Net liability for future policy benefits | 75 | 79 |
Deferred profit liability | 53 | 60 |
Total net liability for future policy benefits | $ 128 | $ 139 |
Insurance - Additional Information (Details) |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Insurance [Abstract] | ||
Weighted-average duration of the liability for future policy benefits | 8 years | 8 years |
Insurance - Reconciliation of Net Liability for Future Policy Benefits To the Consolidated Statements of Financial Position (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Insurance claims and policyholder liabilities | $ 616 | $ 620 | $ 628 | $ 693 | $ 718 |
Term and Whole Life | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Total net liability for future policy benefits | 236 | 255 | |||
Accidental Death and Disability Protection | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Total net liability for future policy benefits | 128 | 139 | |||
Other | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Other | $ 252 | $ 234 |
Insurance - Undiscounted and Discounted Expected Gross Premiums And Expected Future Benefits (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Term and Whole Life | ||
Expected future gross premiums: | ||
Undiscounted | $ 442 | $ 542 |
Discounted | 319 | 386 |
Expected future benefit payments: | ||
Undiscounted | 637 | 712 |
Discounted | 450 | 516 |
Accidental Death and Disability Protection | ||
Expected future gross premiums: | ||
Undiscounted | 155 | 175 |
Discounted | 111 | 129 |
Expected future benefit payments: | ||
Undiscounted | 176 | 193 |
Discounted | $ 118 | $ 135 |
Insurance - Consolidated Statements of Operations (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Term and Whole Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premiums or assessments | $ 30 | $ 35 |
Interest accretion | 4 | 5 |
Accidental Death and Disability Protection | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross premiums or assessments | 10 | 10 |
Interest accretion | $ 2 | $ 3 |
Insurance - Actuarial Assumptions (Details) |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Measurement Input, Mortality Rate, Expected | Term and Whole Life | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0039 | 0.0040 |
Measurement Input, Mortality Rate, Expected | Accidental Death and Disability Protection | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0001 | 0.0001 |
Measurement Input, Mortality Rate, Actual | Term and Whole Life | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0033 | 0.0037 |
Measurement Input, Mortality Rate, Actual | Accidental Death and Disability Protection | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0001 | 0.0001 |
Measurement Input, Lapses, Expected | Term and Whole Life | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0310 | 0.0270 |
Measurement Input, Lapses, Expected | Accidental Death and Disability Protection | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0222 | 0.0225 |
Measurement Input, Lapses, Actual | Term and Whole Life | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0172 | 0.0224 |
Measurement Input, Lapses, Actual | Accidental Death and Disability Protection | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0239 | 0.0274 |
Insurance - Weighted-Average Interest Rates for the Liability of Future Policy Benefits (Details) |
Jun. 30, 2023 |
Jun. 30, 2022 |
---|---|---|
Term and Whole Life | ||
Additional Liability, Long-Duration Insurance [Line Items] | ||
Interest accretion rate | 5.27% | 5.26% |
Current discount rate | 5.19% | 4.70% |
Accidental Death and Disability Protection | ||
Additional Liability, Long-Duration Insurance [Line Items] | ||
Interest accretion rate | 4.86% | 4.86% |
Current discount rate | 5.17% | 4.61% |
Capital Stock and Earnings Per Share (OMH Only) - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
class
| |
Earnings Per Share [Abstract] | |
Number of classes of authorized stock | 2 |
Capital Stock and Earnings Per Share (OMH Only) - Changes in Shares Issued and Outstanding (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance (in shares) | 120,587,214 | 125,793,836 | 121,042,125 | 127,809,640 |
Common stock issued (in shares) | 9,045 | 13,995 | 216,448 | 266,272 |
Common stock repurchased (in shares) | (169,250) | (2,096,397) | (852,634) | (4,378,949) |
Treasury stock issued (in shares) | 19,790 | 15,125 | 40,860 | 29,596 |
Ending balance (in shares) | 120,446,799 | 123,726,559 | 120,446,799 | 123,726,559 |
Capital Stock and Earnings Per Share (OMH Only) - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Numerator (basic and diluted): | ||||
Net income | $ 103 | $ 208 | $ 282 | $ 511 |
Denominator: | ||||
Weighted average number of shares outstanding (basic) (in shares) | 120,539,759 | 124,539,551 | 120,652,710 | 125,807,633 |
Effect of dilutive securities (in shares) | 107,110 | 158,420 | 155,670 | 272,866 |
Weighted average number of shares outstanding (diluted) (in shares) | 120,646,869 | 124,697,971 | 120,808,380 | 126,080,499 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.85 | $ 1.67 | $ 2.33 | $ 4.06 |
Diluted (in dollars per share) | $ 0.85 | $ 1.67 | $ 2.33 | $ 4.05 |
Restricted stock units | ||||
Earnings per share: | ||||
Shares excluded in the diluted earnings per share calculation (in shares) | 1,607,851 | 1,389,727 | 1,590,009 | 1,333,338 |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | $ 3,081 | $ 3,060 | $ 3,015 | $ 3,037 |
Other comprehensive income (loss) before reclassifications | (6) | (41) | 13 | (85) |
Reclassification adjustments from accumulated other comprehensive income | (3) | |||
Balance at end of period | 3,058 | 3,021 | 3,058 | 3,021 |
Unrealized Gains (Losses) Available-for-Sale Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | (112) | (34) | (131) | 49 |
Other comprehensive income (loss) before reclassifications | (12) | (61) | 7 | (141) |
Reclassification adjustments from accumulated other comprehensive income | (3) | |||
Balance at end of period | (124) | (95) | (124) | (95) |
Retirement Plan Liabilities Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | (8) | 1 | (8) | 1 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Reclassification adjustments from accumulated other comprehensive income | 0 | |||
Balance at end of period | (8) | 1 | (8) | 1 |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | (5) | 4 | (5) | 3 |
Other comprehensive income (loss) before reclassifications | 3 | (3) | 3 | (2) |
Reclassification adjustments from accumulated other comprehensive income | 0 | |||
Balance at end of period | (2) | 1 | (2) | 1 |
Changes in discount rate for insurance claims and policyholder liabilities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | (5) | (31) | (8) | (56) |
Other comprehensive income (loss) before reclassifications | 2 | 18 | 5 | 43 |
Reclassification adjustments from accumulated other comprehensive income | 0 | |||
Balance at end of period | (3) | (13) | (3) | (13) |
Other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | 22 | 18 | 25 | 8 |
Other comprehensive income (loss) before reclassifications | 1 | 5 | (2) | 15 |
Reclassification adjustments from accumulated other comprehensive income | 0 | |||
Balance at end of period | 23 | 23 | 23 | 23 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | (108) | (42) | (127) | 5 |
Balance at end of period | $ (114) | $ (83) | $ (114) | $ (83) |
Income Taxes - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | |||
Net deferred tax asset | $ 462 | $ 456 | |
Effective tax rate | 24.50% | 24.60% | |
Unrecognized tax benefits | $ 6 |
Contingencies (Details) $ in Millions |
May 31, 2023
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Payments for refunds | $ 10 |
Payment of civil penalty | $ 10 |
Segment Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Segment Reporting Information [Line Items] | |||||
Interest income | $ 1,117 | $ 1,106 | $ 2,210 | $ 2,195 | |
Interest expense | 244 | 219 | 482 | 438 | |
Provision for finance receivable losses | 479 | 339 | 865 | 577 | |
Net interest income after provision for finance receivable losses | 394 | 548 | 863 | 1,180 | |
Total other revenues | 185 | 128 | 363 | 290 | |
Total other expenses | 441 | 398 | 853 | 793 | |
Income before income taxes | 138 | 278 | 373 | 677 | |
Total assets | 23,511 | 22,199 | 23,511 | 22,199 | $ 22,537 |
Consumer and Insurance | Consumer and Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1,115 | 1,104 | 2,208 | 2,192 | |
Interest expense | 242 | 218 | 480 | 435 | |
Provision for finance receivable losses | 479 | 338 | 865 | 575 | |
Net interest income after provision for finance receivable losses | 394 | 548 | 863 | 1,182 | |
Total other revenues | 182 | 125 | 358 | 283 | |
Total other expenses | 438 | 394 | 847 | 787 | |
Income before income taxes | 138 | 279 | 374 | 678 | |
Total assets | 22,267 | 20,141 | 22,267 | 20,141 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1 | 1 | 2 | 2 | |
Interest expense | 1 | 0 | 1 | 1 | |
Provision for finance receivable losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for finance receivable losses | 0 | 1 | 1 | 1 | |
Total other revenues | 3 | 3 | 5 | 7 | |
Total other expenses | 3 | 4 | 7 | 8 | |
Income before income taxes | 0 | 0 | (1) | 0 | |
Total assets | 29 | 38 | 29 | 38 | |
Segment to GAAP Adjustment | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1 | 1 | 0 | 1 | |
Interest expense | 1 | 1 | 1 | 2 | |
Provision for finance receivable losses | 0 | 1 | 0 | 2 | |
Net interest income after provision for finance receivable losses | 0 | (1) | (1) | (3) | |
Total other revenues | 0 | 0 | 0 | 0 | |
Total other expenses | 0 | 0 | (1) | (2) | |
Income before income taxes | 0 | (1) | 0 | (1) | |
Total assets | $ 1,215 | $ 2,020 | $ 1,215 | $ 2,020 |
Fair Value Measurements - Fair Value & Carrying Value Hierarchy Basis (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Assets | |||
Restricted cash and restricted cash equivalents | $ 532 | $ 461 | $ 534 |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 1,021 | 498 | |
Investment securities | 1,710 | 1,800 | |
Net finance receivables, less allowance for finance receivable losses | 19,909 | 19,272 | |
Restricted cash and restricted cash equivalents | 532 | 461 | |
Other assets | 38 | 43 | |
Liabilities | |||
Long-term debt | 18,111 | 16,969 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 1,021 | 498 | |
Investment securities | 1,710 | 1,800 | |
Net finance receivables, less allowance for finance receivable losses | 18,118 | 17,675 | |
Restricted cash and restricted cash equivalents | 532 | 461 | |
Other assets | 29 | 35 | |
Liabilities | |||
Long-term debt | 19,195 | 18,281 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 1,016 | 481 | |
Investment securities | 52 | 51 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 522 | 450 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 5 | 17 | |
Investment securities | 1,654 | 1,744 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 10 | 11 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 18,111 | 16,969 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 4 | 5 | |
Net finance receivables, less allowance for finance receivable losses | 19,909 | 19,272 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 38 | 43 | |
Liabilities | |||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements - Assets at Fair Value Recurring Basis (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | $ 1,640 | $ 1,729 | |
Other securities | 70 | 71 | |
Restricted cash and restricted cash equivalents | 532 | 461 | $ 534 |
U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 12 | 16 | |
Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 69 | 66 | |
Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,067 | 1,137 | |
RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 182 | 192 | |
CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 34 | 35 | |
CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 87 | 86 | |
Level 1 | |||
Investments, Debt and Equity Securities [Abstract] | |||
Total investment securities | 52 | 51 | |
Restricted cash and restricted cash equivalents | 522 | 450 | |
Level 2 | |||
Investments, Debt and Equity Securities [Abstract] | |||
Total investment securities | 1,654 | 1,744 | |
Restricted cash and restricted cash equivalents | 10 | 11 | |
Level 3 | |||
Investments, Debt and Equity Securities [Abstract] | |||
Total investment securities | 4 | 5 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Fair Value, Measurements, Recurring | |||
Assets | |||
Cash equivalents in mutual funds | 158 | 77 | |
Cash equivalents in securities | 5 | 17 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,640 | 1,729 | |
Other securities | 70 | 71 | |
Total investment securities | 1,710 | 1,800 | |
Restricted cash equivalents in mutual funds | 512 | 445 | |
Restricted cash and restricted cash equivalents | 10 | 11 | |
Total | 2,395 | 2,350 | |
Fair Value, Measurements, Recurring | Total bonds | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 21 | 23 | |
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 12 | 16 | |
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 69 | 66 | |
Fair Value, Measurements, Recurring | Commercial paper | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 42 | 55 | |
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 147 | 142 | |
Fair Value, Measurements, Recurring | Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,067 | 1,137 | |
Other securities | 4 | 6 | |
Fair Value, Measurements, Recurring | RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 182 | 192 | |
Other securities | 1 | ||
Fair Value, Measurements, Recurring | CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 34 | 35 | |
Fair Value, Measurements, Recurring | CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 87 | 86 | |
Other securities | 17 | 16 | |
Fair Value, Measurements, Recurring | Preferred stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 16 | 15 | |
Fair Value, Measurements, Recurring | Common stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 33 | 33 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets | |||
Cash equivalents in mutual funds | 158 | 77 | |
Cash equivalents in securities | 0 | 0 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 5 | 5 | |
Other securities | 47 | 46 | |
Total investment securities | 52 | 51 | |
Restricted cash equivalents in mutual funds | 512 | 445 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Total | 722 | 573 | |
Fair Value, Measurements, Recurring | Level 1 | Total bonds | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 5 | 5 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Other securities | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Preferred stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 16 | 15 | |
Fair Value, Measurements, Recurring | Level 1 | Common stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 31 | 31 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets | |||
Cash equivalents in mutual funds | 0 | 0 | |
Cash equivalents in securities | 5 | 17 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,633 | 1,721 | |
Other securities | 21 | 23 | |
Total investment securities | 1,654 | 1,744 | |
Restricted cash equivalents in mutual funds | 0 | 0 | |
Restricted cash and restricted cash equivalents | 11 | ||
Total | 1,669 | 1,772 | |
Fair Value, Measurements, Recurring | Level 2 | Total bonds | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 21 | 23 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 12 | 16 | |
Fair Value, Measurements, Recurring | Level 2 | Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 69 | 66 | |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 42 | 55 | |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 147 | 142 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 1,060 | 1,129 | |
Other securities | 4 | 6 | |
Fair Value, Measurements, Recurring | Level 2 | RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 182 | 192 | |
Other securities | 1 | ||
Fair Value, Measurements, Recurring | Level 2 | CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 34 | 35 | |
Fair Value, Measurements, Recurring | Level 2 | CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 87 | 86 | |
Other securities | 17 | 16 | |
Fair Value, Measurements, Recurring | Level 2 | Preferred stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Common stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets | |||
Cash equivalents in mutual funds | 0 | 0 | |
Cash equivalents in securities | 0 | 0 | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 2 | 3 | |
Other securities | 2 | 2 | |
Total investment securities | 4 | 5 | |
Restricted cash equivalents in mutual funds | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Total | 4 | 5 | |
Fair Value, Measurements, Recurring | Level 3 | Total bonds | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states, municipalities, and political subdivisions | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. government and government sponsored entities | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 2 | 3 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | RMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Other securities | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | CMBS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | CDO/ABS | |||
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities | 0 | 0 | |
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Preferred stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Common stock | |||
Investments, Debt and Equity Securities [Abstract] | |||
Other securities | $ 2 | $ 2 |
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