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Share Name | Share Symbol | Market | Type |
---|---|---|---|
OneMain Holdings Inc | NYSE:OMF | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-1.51 | -2.90% | 50.60 | 52.15 | 50.265 | 52.00 | 817,509 | 19:16:04 |
Delaware (OneMain Holdings, Inc.) | 27-3379612 | |||||||||||||
Indiana (OneMain Finance Corporation) | 35-0416090 | |||||||||||||
(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 | ||||||||||||
Common Stock, par value $0.01 per share | OMF | New York Stock Exchange | ||||||||||||
OneMain Finance Corporation: None |
OneMain Holdings, Inc.: | |||||||||||||||||||||||||||||
Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ | ||||||||||||||||||||
OneMain Finance Corporation: | |||||||||||||||||||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-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, 2021, filed with the SEC on February 11, 2022 | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
Average daily debt balance | average of debt for each day in the period | |||||||
Average net receivables | average of monthly average net finance receivables (net finance receivables at the beginning and end of each month divided by two) 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 | |||||||
COVID-19 | the global outbreak of a novel strain of coronavirus, including variants thereof | |||||||
Exchange Act | Securities Exchange Act of 1934, as amended | |||||||
FASB | Financial Accounting Standards Board | |||||||
FICO | a credit score created by Fair Isaac Corporation | |||||||
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 | |||||||
Net charge-off ratio | annualized net charge-offs as a percentage of average net receivables | |||||||
Net interest income | interest income less interest expense | |||||||
NORA | Notice and Opportunity to Respond and Advise | |||||||
ODART | OneMain Direct Auto Receivables Trust | |||||||
OMFC | OneMain Finance Corporation | |||||||
OMFIT | OneMain Financial Issuance Trust | |||||||
OMH | OneMain Holdings, Inc. | |||||||
Term or Abbreviation | Definition | |||||||
OneMain | OneMain Holdings, Inc. and OneMain Finance Corporation, collectively with their subsidiaries | |||||||
Open accounts | consist of open credit card accounts 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 collateralized by our personal loans issued on April 25, 2022 | |||||||
Purchase volume | consist 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: Fourth Supplemental Indenture, dated as of December 8, 2017; 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; and Thirteenth Supplemental Indenture, dated as of August 11, 2021 | |||||||
Tax Act | Public Law 115-97 amending the Internal Revenue Code of 1986 | |||||||
TDR finance receivables | troubled debt restructured finance receivables. Debt restructuring in which a concession is 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, 2022 | December 31, 2021 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 526 | $ | 541 | ||||||||||
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.7 billion and $1.8 billion in 2022, respectively, and $1.9 billion and $1.8 billion in 2021, respectively) | 1,773 | 1,992 | ||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $9.6 billion in 2022 and $8.8 billion in 2021) | 19,448 | 19,212 | ||||||||||||
Unearned insurance premium and claim reserves | (754) | (761) | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $984 million in 2022 and $910 million in 2021) | (2,127) | (2,095) | ||||||||||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,567 | 16,356 | ||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $522 million in 2022 and $466 million in 2021) | 534 | 476 | ||||||||||||
Goodwill | 1,437 | 1,437 | ||||||||||||
Other intangible assets | 273 | 274 | ||||||||||||
Other assets | 1,085 | 1,003 | ||||||||||||
Total assets | $ | 22,195 | $ | 22,079 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2022 and $8.0 billion in 2021) | $ | 17,922 | $ | 17,750 | ||||||||||
Insurance claims and policyholder liabilities | 612 | 621 | ||||||||||||
Deferred and accrued taxes | 1 | 1 | ||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $15 million in 2022 and $13 million in 2021) | 627 | 614 | ||||||||||||
Total liabilities | 19,162 | 18,986 | ||||||||||||
Contingencies (Note 12) | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 123,726,559 and 127,809,640 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 1 | 1 | ||||||||||||
Additional paid-in capital | 1,679 | 1,672 | ||||||||||||
Accumulated other comprehensive income (loss) | (70) | 61 | ||||||||||||
Retained earnings | 1,994 | 1,727 | ||||||||||||
Treasury stock, at cost; 11,062,276 and 6,712,923 shares at June 30, 2022 and December 31, 2021, respectively | (571) | (368) | ||||||||||||
Total shareholders’ equity | 3,033 | 3,093 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 22,195 | $ | 22,079 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Interest income | $ | 1,106 | $ | 1,071 | $ | 2,195 | $ | 2,130 | ||||||||||||||||||
Interest expense | 219 | 231 | 438 | 465 | ||||||||||||||||||||||
Net interest income | 887 | 840 | 1,757 | 1,665 | ||||||||||||||||||||||
Provision for finance receivable losses | 339 | 132 | 577 | 130 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 548 | 708 | 1,180 | 1,535 | ||||||||||||||||||||||
Other revenues: | ||||||||||||||||||||||||||
Insurance | 111 | 107 | 222 | 214 | ||||||||||||||||||||||
Investment | 9 | 17 | 24 | 34 | ||||||||||||||||||||||
Gain on sales of finance receivables | 16 | 11 | 33 | 15 | ||||||||||||||||||||||
Net loss on repurchases and repayments of debt | (28) | (1) | (28) | (48) | ||||||||||||||||||||||
Other | 20 | 16 | 39 | 26 | ||||||||||||||||||||||
Total other revenues | 128 | 150 | 290 | 241 | ||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||
Salaries and benefits | 205 | 194 | 409 | 383 | ||||||||||||||||||||||
Other operating expenses | 151 | 153 | 300 | 302 | ||||||||||||||||||||||
Insurance policy benefits and claims | 40 | 48 | 85 | 81 | ||||||||||||||||||||||
Total other expenses | 396 | 395 | 794 | 766 | ||||||||||||||||||||||
Income before income taxes | 280 | 463 | 676 | 1,010 | ||||||||||||||||||||||
Income taxes | 71 | 113 | 166 | 247 | ||||||||||||||||||||||
Net income | $ | 209 | $ | 350 | $ | 510 | $ | 763 | ||||||||||||||||||
Share Data: | ||||||||||||||||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||||
Basic | 124,539,551 | 134,255,916 | 125,807,633 | 134,330,229 | ||||||||||||||||||||||
Diluted | 124,697,971 | 134,644,350 | 126,080,499 | 134,723,124 | ||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Basic | $ | 1.68 | $ | 2.61 | $ | 4.05 | $ | 5.68 | ||||||||||||||||||
Diluted | $ | 1.68 | $ | 2.60 | $ | 4.04 | $ | 5.67 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net income | $ | 209 | $ | 350 | $ | 510 | $ | 763 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (79) | 17 | (183) | (25) | ||||||||||||||||||||||
Foreign currency translation adjustments | (4) | 1 | (3) | 3 | ||||||||||||||||||||||
Other | 7 | (12) | 20 | 11 | ||||||||||||||||||||||
Income tax effect: | ||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 18 | (4) | 42 | 6 | ||||||||||||||||||||||
Foreign currency translation adjustments | 1 | — | 1 | — | ||||||||||||||||||||||
Other | (2) | 3 | (5) | (3) | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax, before reclassification adjustments | (59) | 5 | (128) | (8) | ||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax: | ||||||||||||||||||||||||||
Net realized losses on available-for-sale securities, net of tax | — | — | (3) | (1) | ||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax | — | — | (3) | (1) | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (59) | 5 | (131) | (9) | ||||||||||||||||||||||
Comprehensive income | $ | 150 | $ | 355 | $ | 379 | $ | 754 |
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, 2022 | ||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | $ | 1 | $ | 1,672 | $ | (11) | $ | 1,905 | $ | (478) | $ | 3,089 | ||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | (94) | (94) | ||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 7 | — | — | — | 7 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | (59) | — | — | (59) | ||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | (120) | — | (120) | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 209 | — | 209 | ||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | 1 | $ | 1,679 | $ | (70) | $ | 1,994 | $ | (571) | $ | 3,033 | ||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2021 | $ | 1 | $ | 1,657 | $ | 80 | $ | 1,570 | $ | — | $ | 3,308 | ||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | (35) | (35) | ||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 4 | — | — | — | 4 | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | 5 | — | — | 5 | ||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | (95) | — | (95) | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 350 | — | 350 | ||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 1 | $ | 1,661 | $ | 85 | $ | 1,825 | $ | (35) | $ | 3,537 | ||||||||||||||||||||||||||
* Cash dividends declared were $0.95 per share and $0.70 per share during the three months ended June 30, 2022 and 2021, respectively. |
Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2022 | 2021 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 510 | $ | 763 | ||||||||||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | 577 | 130 | ||||||||||||
Depreciation and amortization | 125 | 127 | ||||||||||||
Deferred income tax charge | 1 | 76 | ||||||||||||
Net loss on repurchases and repayments of debt | 28 | 48 | ||||||||||||
Share-based compensation expense, net of forfeitures | 19 | 11 | ||||||||||||
Gain on sales of finance receivables | (33) | (15) | ||||||||||||
Other | 3 | (4) | ||||||||||||
Cash flows due to changes in other assets and other liabilities | (52) | (6) | ||||||||||||
Net cash provided by operating activities | 1,178 | 1,130 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations and purchases of finance receivables | (1,195) | (717) | ||||||||||||
Proceeds from sales of finance receivables | 399 | 183 | ||||||||||||
Available-for-sale securities purchased | (267) | (257) | ||||||||||||
Available-for-sale securities called, sold, and matured | 293 | 213 | ||||||||||||
Other securities purchased | (4) | (698) | ||||||||||||
Other securities called, sold, and matured | 9 | 685 | ||||||||||||
Other, net | (37) | (39) | ||||||||||||
Net cash used for investing activities | (802) | (630) | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | 2,589 | 1,578 | ||||||||||||
Repayment of long-term debt | (2,461) | (1,839) | ||||||||||||
Cash dividends | (246) | (628) | ||||||||||||
Common stock repurchased | (204) | (35) | ||||||||||||
Treasury stock issued | 1 | — | ||||||||||||
Withholding tax on share-based compensation | (12) | (5) | ||||||||||||
Net cash used for financing activities | (333) | (929) | ||||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 43 | (429) | ||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,017 | 2,723 | ||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | 1,060 | $ | 2,294 | ||||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | $ | 526 | $ | 1,787 | ||||||||||
Restricted cash and restricted cash equivalents | 534 | 507 | ||||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | 1,060 | $ | 2,294 | ||||||||||
(dollars in millions, except par value amount) | June 30, 2022 | December 31, 2021 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 519 | $ | 510 | ||||||||||
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.7 billion and $1.8 billion in 2022, respectively, and $1.9 billion and $1.8 billion in 2021, respectively) | 1,773 | 1,992 | ||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $9.6 billion in 2022 and $8.8 billion in 2021) | 19,448 | 19,212 | ||||||||||||
Unearned insurance premium and claim reserves | (754) | (761) | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $984 million in 2022 and $910 million in 2021) | (2,127) | (2,095) | ||||||||||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,567 | 16,356 | ||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $522 million in 2022 and $466 million in 2021) | 534 | 476 | ||||||||||||
Goodwill | 1,437 | 1,437 | ||||||||||||
Other intangible assets | 273 | 274 | ||||||||||||
Other assets | 1,084 | 1,001 | ||||||||||||
Total assets | $ | 22,187 | $ | 22,046 | ||||||||||
Liabilities and Shareholder’s Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2022 and $8.0 billion in 2021) | $ | 17,922 | $ | 17,750 | ||||||||||
Insurance claims and policyholder liabilities | 612 | 621 | ||||||||||||
Deferred and accrued taxes | 1 | 1 | ||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $15 million in 2022 and $13 million in 2021) | 629 | 614 | ||||||||||||
Total liabilities | 19,164 | 18,986 | ||||||||||||
Contingencies (Note 12) | ||||||||||||||
Shareholder’s equity: | ||||||||||||||
Common stock, par value $0.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 5 | 5 | ||||||||||||
Additional paid-in capital | 1,923 | 1,916 | ||||||||||||
Accumulated other comprehensive income (loss) | (70) | 61 | ||||||||||||
Retained earnings | 1,165 | 1,078 | ||||||||||||
Total shareholder’s equity | 3,023 | 3,060 | ||||||||||||
Total liabilities and shareholder’s equity | $ | 22,187 | $ | 22,046 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Interest income | $ | 1,106 | $ | 1,071 | $ | 2,195 | $ | 2,130 | ||||||||||||||||||
Interest expense | 219 | 231 | 438 | 465 | ||||||||||||||||||||||
Net interest income | 887 | 840 | 1,757 | 1,665 | ||||||||||||||||||||||
Provision for finance receivable losses | 339 | 132 | 577 | 130 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 548 | 708 | 1,180 | 1,535 | ||||||||||||||||||||||
Other revenues: | ||||||||||||||||||||||||||
Insurance | 111 | 107 | 222 | 214 | ||||||||||||||||||||||
Investment | 9 | 17 | 24 | 34 | ||||||||||||||||||||||
Gain on sales of finance receivables | 16 | 11 | 33 | 15 | ||||||||||||||||||||||
Net loss on repurchases and repayments of debt | (28) | (1) | (28) | (48) | ||||||||||||||||||||||
Other | 20 | 16 | 39 | 26 | ||||||||||||||||||||||
Total other revenues | 128 | 150 | 290 | 241 | ||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||
Salaries and benefits | 205 | 194 | 409 | 383 | ||||||||||||||||||||||
Other operating expenses | 151 | 153 | 300 | 302 | ||||||||||||||||||||||
Insurance policy benefits and claims | 40 | 48 | 85 | 81 | ||||||||||||||||||||||
Total other expenses | 396 | 395 | 794 | 766 | ||||||||||||||||||||||
Income before income taxes | 280 | 463 | 676 | 1,010 | ||||||||||||||||||||||
Income taxes | 71 | 113 | 166 | 247 | ||||||||||||||||||||||
Net income | $ | 209 | $ | 350 | $ | 510 | $ | 763 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net income | $ | 209 | $ | 350 | $ | 510 | $ | 763 | ||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (79) | 17 | (183) | (25) | ||||||||||||||||||||||
Foreign currency translation adjustments | (4) | 1 | (3) | 3 | ||||||||||||||||||||||
Other | 7 | (12) | 20 | 11 | ||||||||||||||||||||||
Income tax effect: | ||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 18 | (4) | 42 | 6 | ||||||||||||||||||||||
Foreign currency translation adjustments | 1 | — | 1 | — | ||||||||||||||||||||||
Other | (2) | 3 | (5) | (3) | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax, before reclassification adjustments | (59) | 5 | (128) | (8) | ||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax: | ||||||||||||||||||||||||||
Net realized losses on available-for-sale securities, net of tax | — | — | (3) | (1) | ||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax | — | — | (3) | (1) | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (59) | 5 | (131) | (9) | ||||||||||||||||||||||
Comprehensive income | $ | 150 | $ | 355 | $ | 379 | $ | 754 |
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, 2022 | ||||||||||||||||||||||||||||||||
Balance, April 1, 2022 | $ | 5 | $ | 1,916 | $ | (11) | $ | 1,156 | $ | 3,066 | ||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 7 | — | — | 7 | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | (59) | — | (59) | |||||||||||||||||||||||||||
Cash dividends | — | — | — | (200) | (200) | |||||||||||||||||||||||||||
Net income | — | — | — | 209 | 209 | |||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | 5 | $ | 1,923 | $ | (70) | $ | 1,165 | $ | 3,023 | ||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Balance, April 1, 2021 | $ | 5 | $ | 1,901 | $ | 80 | $ | 1,320 | $ | 3,306 | ||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 4 | — | — | 4 | |||||||||||||||||||||||||||
Other comprehensive income | — | — | 5 | — | 5 | |||||||||||||||||||||||||||
Cash dividends | — | — | — | (135) | (135) | |||||||||||||||||||||||||||
Net income | — | — | — | 350 | 350 | |||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 5 | $ | 1,905 | $ | 85 | $ | 1,535 | $ | 3,530 | ||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | 5 | $ | 1,916 | $ | 61 | $ | 1,078 | $ | 3,060 | ||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 19 | — | — | 19 | |||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | (12) | — | — | (12) | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | (131) | — | (131) | |||||||||||||||||||||||||||
Cash dividends | — | — | — | (423) | (423) | |||||||||||||||||||||||||||
Net income | — | — | — | 510 | 510 | |||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | 5 | $ | 1,923 | $ | (70) | $ | 1,165 | $ | 3,023 | ||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | 5 | $ | 1,899 | $ | 94 | $ | 1,442 | $ | 3,440 | ||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 11 | — | — | 11 | |||||||||||||||||||||||||||
Withholding tax on shared-based compensation | — | (5) | — | — | (5) | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | (9) | — | (9) | |||||||||||||||||||||||||||
Cash dividends | — | — | — | (670) | (670) | |||||||||||||||||||||||||||
Net income | — | — | — | 763 | 763 | |||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 5 | $ | 1,905 | $ | 85 | $ | 1,535 | $ | 3,530 | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2022 | 2021 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 510 | $ | 763 | ||||||||||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | 577 | 130 | ||||||||||||
Depreciation and amortization | 125 | 127 | ||||||||||||
Deferred income tax charge | 1 | 76 | ||||||||||||
Net loss on repurchases and repayments of debt | 28 | 48 | ||||||||||||
Share-based compensation expense, net of forfeitures | 19 | 11 | ||||||||||||
Gain on sales of finance receivables | (33) | (15) | ||||||||||||
Other | 3 | (4) | ||||||||||||
Cash flows due to changes in other assets and other liabilities | (51) | (4) | ||||||||||||
Net cash provided by operating activities | 1,179 | 1,132 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations and purchases of finance receivables | (1,195) | (717) | ||||||||||||
Proceeds from sales of finance receivables | 399 | 183 | ||||||||||||
Available-for-sale securities purchased | (267) | (257) | ||||||||||||
Available-for-sale securities called, sold, and matured | 293 | 213 | ||||||||||||
Other securities purchased | (4) | (698) | ||||||||||||
Other securities called, sold, and matured | 9 | 685 | ||||||||||||
Other, net | (37) | (39) | ||||||||||||
Net cash used for investing activities | (802) | (630) | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | 2,589 | 1,578 | ||||||||||||
Repayment of long-term debt | (2,461) | (1,839) | ||||||||||||
Cash dividends | (426) | (670) | ||||||||||||
Withholding tax on share-based compensation | (12) | (5) | ||||||||||||
Net cash used for financing activities | (310) | (936) | ||||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 67 | (434) | ||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 986 | 2,723 | ||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | 1,053 | $ | 2,289 | ||||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | $ | 519 | $ | 1,782 | ||||||||||
Restricted cash and restricted cash equivalents | 534 | 507 | ||||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | 1,053 | $ | 2,289 | ||||||||||
1. Business and Basis of Presentation |
2. Recent Accounting Pronouncements |
3. Finance Receivables |
(dollars in millions) | Personal Loans | Credit Cards | Total | |||||||||||||||||
June 30, 2022 | ||||||||||||||||||||
Gross finance receivables (a) | $ | 19,133 | $ | 63 | $ | 19,196 | ||||||||||||||
Unearned fees | (221) | — | (221) | |||||||||||||||||
Accrued finance charges and fees | 288 | — | 288 | |||||||||||||||||
Deferred origination costs | 184 | 1 | 185 | |||||||||||||||||
Total | $ | 19,384 | $ | 64 | $ | 19,448 | ||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Gross finance receivables (a) | $ | 18,944 | $ | 24 | $ | 18,968 | ||||||||||||||
Unearned fees | (225) | (1) | (226) | |||||||||||||||||
Accrued finance charges and fees | 289 | — | 289 | |||||||||||||||||
Deferred origination costs | 179 | 2 | 181 | |||||||||||||||||
Total | $ | 19,187 | $ | 25 | $ | 19,212 |
(dollars in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||||||||||||||
Current | $ | 6,105 | $ | 7,357 | $ | 2,630 | $ | 1,714 | $ | 460 | $ | 173 | $ | 18,439 | ||||||||||||||||||||||||||||||
30-59 days past due | 34 | 171 | 59 | 39 | 13 | 7 | 323 | |||||||||||||||||||||||||||||||||||||
60-89 days past due | 16 | 116 | 40 | 23 | 7 | 4 | 206 | |||||||||||||||||||||||||||||||||||||
Total performing | 6,155 | 7,644 | 2,729 | 1,776 | 480 | 184 | 18,968 | |||||||||||||||||||||||||||||||||||||
Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
90+ days past due | 9 | 236 | 92 | 54 | 16 | 9 | 416 | |||||||||||||||||||||||||||||||||||||
Total | $ | 6,164 | $ | 7,880 | $ | 2,821 | $ | 1,830 | $ | 496 | $ | 193 | $ | 19,384 |
(dollars in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | |||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||||||||||||||
Current | $ | 10,645 | $ | 3,935 | $ | 2,641 | $ | 814 | $ | 193 | $ | 109 | $ | 18,337 | ||||||||||||||||||||||||||||||
30-59 days past due | 125 | 74 | 53 | 19 | 6 | 5 | 282 | |||||||||||||||||||||||||||||||||||||
60-89 days past due | 81 | 53 | 33 | 11 | 4 | 3 | 185 | |||||||||||||||||||||||||||||||||||||
Total performing | 10,851 | 4,062 | 2,727 | 844 | 203 | 117 | 18,804 | |||||||||||||||||||||||||||||||||||||
Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
90+ days past due | 125 | 130 | 85 | 28 | 9 | 6 | 383 | |||||||||||||||||||||||||||||||||||||
Total | $ | 10,976 | $ | 4,192 | $ | 2,812 | $ | 872 | $ | 212 | $ | 123 | $ | 19,187 |
(dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Current | $ | 56 | $ | 25 | ||||||||||
30-59 days past due | 2 | — | ||||||||||||
60-89 days past due | 2 | — | ||||||||||||
90+ days past due | 4 | — | ||||||||||||
Total | $ | 64 | $ | 25 | ||||||||||
(dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
TDR gross finance receivables | $ | 670 | $ | 646 | ||||||||||
TDR net finance receivables * | 675 | 650 | ||||||||||||
Allowance for TDR finance receivable losses | 272 | 270 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Pre-modification TDR net finance receivables | $ | 143 | $ | 112 | $ | 276 | $ | 228 | ||||||||||||||||||
Post-modification TDR net finance receivables: | ||||||||||||||||||||||||||
Rate reduction | 84 | 79 | 170 | 156 | ||||||||||||||||||||||
Other * | 59 | 33 | 106 | 71 | ||||||||||||||||||||||
Total post-modification TDR net finance receivables | $ | 143 | $ | 112 | $ | 276 | $ | 227 | ||||||||||||||||||
Number of TDR accounts | 17,516 | 13,691 | 33,681 | 28,199 | ||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
TDR net finance receivables * | $ | 30 | $ | 27 | $ | 59 | $ | 56 | ||||||||||||||||||
Number of TDR accounts | 3,762 | 3,743 | 7,558 | 7,926 | ||||||||||||||||||||||
4. Allowance for Finance Receivable Losses |
(dollars in millions) | Personal Loans | Credit Cards | Total | |||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||
Balance at beginning of period | $ | 2,061 | $ | 10 | $ | 2,071 | ||||||||||||||
Provision for finance receivable losses | 337 | 2 | 339 | |||||||||||||||||
Charge-offs | (351) | — | (351) | |||||||||||||||||
Recoveries | 68 | — | 68 | |||||||||||||||||
Balance at end of period | $ | 2,115 | $ | 12 | $ | 2,127 | ||||||||||||||
Three Months Ended June 30, 2021* | ||||||||||||||||||||
Balance at beginning of period | $ | 2,062 | $ | — | $ | 2,062 | ||||||||||||||
Provision for finance receivable losses | 132 | — | 132 | |||||||||||||||||
Charge-offs | (252) | — | (252) | |||||||||||||||||
Recoveries | 58 | — | 58 | |||||||||||||||||
Balance at end of period | $ | 2,000 | $ | — | $ | 2,000 | ||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||
Balance at beginning of period | $ | 2,090 | $ | 5 | $ | 2,095 | ||||||||||||||
Provision for finance receivable losses | 570 | 7 | 577 | |||||||||||||||||
Charge-offs | (680) | — | (680) | |||||||||||||||||
Recoveries | 135 | — | 135 | |||||||||||||||||
Balance at end of period | $ | 2,115 | $ | 12 | $ | 2,127 | ||||||||||||||
Six Months Ended June 30, 2021* | ||||||||||||||||||||
Balance at beginning of period | $ | 2,269 | $ | — | $ | 2,269 | ||||||||||||||
Provision for finance receivable losses | 130 | — | 130 | |||||||||||||||||
Charge-offs | (507) | — | (507) | |||||||||||||||||
Recoveries | 108 | — | 108 | |||||||||||||||||
Balance at end of period | $ | 2,000 | $ | — | $ | 2,000 | ||||||||||||||
(dollars in millions) | Personal Loans | Credit Cards | Total | |||||||||||||||||
June 30, 2022 | ||||||||||||||||||||
Allowance for finance receivable losses: | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,843 | $ | 12 | $ | 1,855 | ||||||||||||||
TDR finance receivables | 272 | — | 272 | |||||||||||||||||
Total | $ | 2,115 | $ | 12 | $ | 2,127 | ||||||||||||||
Finance receivables: | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 18,709 | $ | 64 | $ | 18,773 | ||||||||||||||
TDR finance receivables | 675 | — | 675 | |||||||||||||||||
Total | $ | 19,384 | $ | 64 | $ | 19,448 | ||||||||||||||
Allowance for finance receivable losses as a percentage of finance receivables | 10.91 | % | 19.13 | % | 10.94 | % | ||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Allowance for finance receivable losses: | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,820 | $ | 5 | $ | 1,825 | ||||||||||||||
TDR finance receivables | 270 | — | 270 | |||||||||||||||||
Total | $ | 2,090 | $ | 5 | $ | 2,095 | ||||||||||||||
Finance receivables: | ||||||||||||||||||||
Collectively evaluated for impairment | $ | 18,537 | $ | 25 | $ | 18,562 | ||||||||||||||
TDR finance receivables | 650 | — | 650 | |||||||||||||||||
Total | $ | 19,187 | $ | 25 | $ | 19,212 | ||||||||||||||
Allowance for finance receivable losses as a percentage of finance receivables | 10.89 | % | 19.91 | % | 10.90 | % |
5. Investment Securities |
(dollars in millions) | Cost/ Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||
June 30, 2022* | ||||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 13 | $ | — | $ | — | $ | 13 | ||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 74 | — | (5) | 69 | ||||||||||||||||||||||
Commercial paper | 58 | — | — | 58 | ||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 144 | — | (7) | 137 | ||||||||||||||||||||||
Corporate debt | 1,212 | 1 | (91) | 1,122 | ||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||
RMBS | 190 | — | (15) | 175 | ||||||||||||||||||||||
CMBS | 41 | — | (2) | 39 | ||||||||||||||||||||||
CDO/ABS | 92 | — | (5) | 87 | ||||||||||||||||||||||
Total | $ | 1,824 | $ | 1 | $ | (125) | $ | 1,700 | ||||||||||||||||||
December 31, 2021* | ||||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 16 | $ | — | $ | — | $ | 16 | ||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 76 | 3 | — | 79 | ||||||||||||||||||||||
Commercial paper | 50 | — | — | 50 | ||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 151 | 4 | — | 155 | ||||||||||||||||||||||
Corporate debt | 1,246 | 61 | (5) | 1,302 | ||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||
RMBS | 169 | 3 | (2) | 170 | ||||||||||||||||||||||
CMBS | 44 | 1 | — | 45 | ||||||||||||||||||||||
CDO/ABS | 90 | 1 | (1) | 90 | ||||||||||||||||||||||
Total | $ | 1,842 | $ | 73 | $ | (8) | $ | 1,907 | ||||||||||||||||||
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, 2022 | ||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 13 | $ | — | $ | — | $ | — | $ | 13 | $ | — | ||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 56 | (5) | 2 | — | 58 | (5) | ||||||||||||||||||||||||||||||||
Commercial paper | 53 | — | — | — | 53 | — | ||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 107 | (6) | 5 | (1) | 112 | (7) | ||||||||||||||||||||||||||||||||
Corporate debt | 938 | (79) | 47 | (12) | 985 | (91) | ||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||
RMBS | 131 | (11) | 26 | (4) | 157 | (15) | ||||||||||||||||||||||||||||||||
CMBS | 39 | (2) | — | — | 39 | (2) | ||||||||||||||||||||||||||||||||
CDO/ABS | 72 | (5) | 6 | — | 78 | (5) | ||||||||||||||||||||||||||||||||
Total | $ | 1,409 | $ | (108) | $ | 86 | $ | (17) | $ | 1,495 | $ | (125) | ||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 6 | $ | — | $ | — | $ | — | $ | 6 | $ | — | ||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 10 | — | — | — | 10 | — | ||||||||||||||||||||||||||||||||
Commercial paper | 46 | — | — | — | 46 | — | ||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 19 | — | 5 | — | 24 | — | ||||||||||||||||||||||||||||||||
Corporate debt | 208 | (3) | 38 | (2) | 246 | (5) | ||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||
RMBS | 81 | (1) | 15 | (1) | 96 | (2) | ||||||||||||||||||||||||||||||||
CMBS | 7 | — | — | — | 7 | — | ||||||||||||||||||||||||||||||||
CDO/ABS | 41 | (1) | 3 | — | 44 | (1) | ||||||||||||||||||||||||||||||||
Total | $ | 418 | $ | (5) | $ | 61 | $ | (3) | $ | 479 | $ | (8) |
(dollars in millions) | Fair Value | Amortized Cost | ||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||||||||||||||
Due in 1 year or less | $ | 193 | $ | 193 | ||||||||||
Due after 1 year through 5 years | 496 | 513 | ||||||||||||
Due after 5 years through 10 years | 561 | 624 | ||||||||||||
Due after 10 years | 149 | 171 | ||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 301 | 323 | ||||||||||||
Total | $ | 1,700 | $ | 1,824 |
(dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Fixed maturity other securities: | ||||||||||||||
Bonds | $ | 25 | $ | 30 | ||||||||||
Preferred stock * | 17 | 22 | ||||||||||||
Common stock * | 31 | 33 | ||||||||||||
Total | $ | 73 | $ | 85 |
6. Long-term Debt |
Senior Debt | ||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Securitizations | Private Secured Term Funding | Revolving Conduit Facilities | Unsecured Notes (a) | Junior Subordinated Debt (a) | Total | ||||||||||||||||||||||||||||||||
Interest rates (b) | 0.87%-6.94% | 2.06% | 1.82%-1.97% | 3.50%-8.25% | 2.79 | % | ||||||||||||||||||||||||||||||||
Remainder of 2022 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
2023 | — | — | — | 1,175 | — | 1,175 | ||||||||||||||||||||||||||||||||
2024 | — | — | — | 1,300 | — | 1,300 | ||||||||||||||||||||||||||||||||
2025 | — | — | — | 1,250 | — | 1,250 | ||||||||||||||||||||||||||||||||
2026 | — | — | — | 1,600 | — | 1,600 | ||||||||||||||||||||||||||||||||
2027-2067 | — | — | — | 3,750 | 350 | 4,100 | ||||||||||||||||||||||||||||||||
Secured (c) | 7,932 | 350 | 500 | — | — | 8,782 | ||||||||||||||||||||||||||||||||
Total principal maturities | $ | 7,932 | $ | 350 | $ | 500 | $ | 9,075 | $ | 350 | $ | 18,207 | ||||||||||||||||||||||||||
Total carrying amount | $ | 7,896 | $ | 349 | $ | 500 | $ | 9,005 | $ | 172 | $ | 17,922 | ||||||||||||||||||||||||||
Debt issuance costs (d) | (34) | (1) | — | (72) | — | (107) |
7. Variable Interest Entities |
(dollars in millions) | June 30, 2022 | December 31, 2021 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 2 | $ | 2 | ||||||||||
Net finance receivables | 9,617 | 8,821 | ||||||||||||
Allowance for finance receivable losses | 984 | 910 | ||||||||||||
Restricted cash and restricted cash equivalents | 522 | 466 | ||||||||||||
Other assets | 25 | 26 | ||||||||||||
Liabilities | ||||||||||||||
Long-term debt | $ | 8,745 | $ | 7,999 | ||||||||||
Other liabilities | 15 | 13 |
8. Insurance |
At or for the Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2022 | 2021 | ||||||||||||
Balance at beginning of period | $ | 118 | $ | 148 | ||||||||||
Less reinsurance recoverables | (3) | (3) | ||||||||||||
Net balance at beginning of period | 115 | 145 | ||||||||||||
Additions for losses and loss adjustment expenses incurred to: | ||||||||||||||
Current year | 103 | 109 | ||||||||||||
Prior years * | (10) | (18) | ||||||||||||
Total | 93 | 91 | ||||||||||||
Reductions for losses and loss adjustment expenses paid related to: | ||||||||||||||
Current year | (44) | (53) | ||||||||||||
Prior years | (50) | (67) | ||||||||||||
Total | (94) | (120) | ||||||||||||
Net balance at end of period | 114 | 116 | ||||||||||||
Plus reinsurance recoverables | 3 | 3 | ||||||||||||
Balance at end of period | $ | 117 | $ | 119 |
9. Capital Stock and Earnings Per Share (OMH Only) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Balance at beginning of period | 125,793,836 | 134,477,096 | 127,809,640 | 134,341,724 | ||||||||||||||||||||||
Common stock issued | 13,995 | 19,302 | 266,272 | 154,674 | ||||||||||||||||||||||
Common stock repurchased | (2,096,397) | (612,355) | (4,378,949) | (612,355) | ||||||||||||||||||||||
Treasury stock issued | 15,125 | — | 29,596 | — | ||||||||||||||||||||||
Balance at end of period | 123,726,559 | 133,884,043 | 123,726,559 | 133,884,043 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions, except per share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Numerator (basic and diluted): | ||||||||||||||||||||||||||
Net income | $ | 209 | $ | 350 | $ | 510 | $ | 763 | ||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average number of shares outstanding (basic) | 124,539,551 | 134,255,916 | 125,807,633 | 134,330,229 | ||||||||||||||||||||||
Effect of dilutive securities * | 158,420 | 388,434 | 272,866 | 392,895 | ||||||||||||||||||||||
Weighted average number of shares outstanding (diluted) | 124,697,971 | 134,644,350 | 126,080,499 | 134,723,124 | ||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Basic | $ | 1.68 | $ | 2.61 | $ | 4.05 | $ | 5.68 | ||||||||||||||||||
Diluted | $ | 1.68 | $ | 2.60 | $ | 4.04 | $ | 5.67 |
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 | Other (b) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | (34) | $ | 1 | $ | 4 | $ | 18 | $ | (11) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (61) | — | (3) | 5 | (59) | |||||||||||||||||||||||||||
Balance at end of period | $ | (95) | $ | 1 | $ | 1 | $ | 23 | $ | (70) | ||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 58 | $ | 1 | $ | 4 | $ | 17 | $ | 80 | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 13 | — | 1 | (9) | $ | 5 | ||||||||||||||||||||||||||
Balance at end of period | $ | 71 | $ | 1 | $ | 5 | $ | 8 | $ | 85 | ||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 49 | $ | 1 | $ | 3 | $ | 8 | $ | 61 | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (141) | — | (2) | 15 | (128) | |||||||||||||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (3) | — | — | — | (3) | |||||||||||||||||||||||||||
Balance at end of period | $ | (95) | $ | 1 | $ | 1 | $ | 23 | $ | (70) | ||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 91 | $ | 1 | $ | 2 | $ | — | 94 | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (19) | — | 3 | 8 | (8) | |||||||||||||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1) | — | — | — | (1) | |||||||||||||||||||||||||||
Balance at end of period | $ | 71 | $ | 1 | $ | 5 | $ | 8 | $ | 85 | ||||||||||||||||||||||
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, 2022 | ||||||||||||||||||||||||||
Interest income | $ | 1,104 | $ | 1 | $ | 1 | $ | 1,106 | ||||||||||||||||||
Interest expense | 218 | — | 1 | 219 | ||||||||||||||||||||||
Provision for finance receivable losses | 338 | — | 1 | 339 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 548 | 1 | (1) | 548 | ||||||||||||||||||||||
Other revenues | 125 | 3 | — | 128 | ||||||||||||||||||||||
Other expenses | 392 | 4 | — | 396 | ||||||||||||||||||||||
Income before income tax expense | $ | 281 | $ | — | $ | (1) | $ | 280 | ||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||
Interest income | $ | 1,069 | $ | 1 | $ | 1 | $ | 1,071 | ||||||||||||||||||
Interest expense | 230 | 1 | — | 231 | ||||||||||||||||||||||
Provision for finance receivable losses | 130 | — | 2 | 132 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 709 | — | (1) | 708 | ||||||||||||||||||||||
Other revenues | 147 | 4 | (1) | 150 | ||||||||||||||||||||||
Other expenses | 382 | 6 | 7 | 395 | ||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | 474 | $ | (2) | $ | (9) | $ | 463 | ||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||
Interest income | $ | 2,192 | $ | 2 | $ | 1 | $ | 2,195 | ||||||||||||||||||
Interest expense | 435 | 1 | 2 | 438 | ||||||||||||||||||||||
Provision for finance receivable losses | 575 | — | 2 | 577 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 1,182 | 1 | (3) | 1,180 | ||||||||||||||||||||||
Other revenues | 283 | 7 | — | 290 | ||||||||||||||||||||||
Other expenses | 788 | 8 | (2) | 794 | ||||||||||||||||||||||
Income before income tax expense | $ | 677 | $ | — | $ | (1) | $ | 676 | ||||||||||||||||||
Assets | $ | 20,137 | $ | 38 | $ | 2,020 | $ | 22,195 | ||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||
Interest income | $ | 2,125 | $ | 3 | $ | 2 | $ | 2,130 | ||||||||||||||||||
Interest expense | 462 | 2 | 1 | 465 | ||||||||||||||||||||||
Provision for finance receivable losses | 127 | — | 3 | 130 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 1,536 | 1 | (2) | 1,535 | ||||||||||||||||||||||
Other revenues | 244 | 7 | (10) | 241 | ||||||||||||||||||||||
Other expenses | 739 | 12 | 15 | 766 | ||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | 1,041 | $ | (4) | $ | (27) | $ | 1,010 | ||||||||||||||||||
Assets | $ | 20,301 | $ | 48 | $ | 2,028 | $ | 22,377 |
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, 2022 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 526 | $ | — | $ | — | $ | 526 | $ | 526 | ||||||||||||||||||||||
Investment securities | 51 | 1,718 | 4 | 1,773 | 1,773 | |||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 19,666 | 19,666 | 17,321 | |||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | 534 | — | — | 534 | 534 | |||||||||||||||||||||||||||
Other assets * | — | — | 47 | 47 | 40 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 16,607 | $ | — | $ | 16,607 | $ | 17,922 | ||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 535 | $ | 6 | $ | — | $ | 541 | $ | 541 | ||||||||||||||||||||||
Investment securities | 59 | 1,927 | 6 | 1,992 | 1,992 | |||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 20,083 | 20,083 | 17,117 | |||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | 476 | — | — | 476 | 476 | |||||||||||||||||||||||||||
Other assets * | — | — | 52 | 52 | 46 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 18,781 | $ | — | $ | 18,781 | $ | 17,750 |
Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 34 | $ | — | $ | — | $ | 34 | ||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 13 | — | 13 | ||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 69 | — | 69 | ||||||||||||||||||||||
Commercial paper | — | 58 | — | 58 | ||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 137 | — | 137 | ||||||||||||||||||||||
Corporate debt | 4 | 1,115 | 3 | 1,122 | ||||||||||||||||||||||
RMBS | — | 175 | — | 175 | ||||||||||||||||||||||
CMBS | — | 39 | — | 39 | ||||||||||||||||||||||
CDO/ABS | — | 87 | — | 87 | ||||||||||||||||||||||
Total available-for-sale securities | 4 | 1,693 | 3 | 1,700 | ||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
Corporate debt | — | 8 | — | 8 | ||||||||||||||||||||||
RMBS | — | 1 | — | 1 | ||||||||||||||||||||||
CDO/ABS | — | 16 | — | 16 | ||||||||||||||||||||||
Total bonds | — | 25 | — | 25 | ||||||||||||||||||||||
Preferred stock | 17 | — | — | 17 | ||||||||||||||||||||||
Common stock | 30 | — | 1 | 31 | ||||||||||||||||||||||
Total other securities | 47 | 25 | 1 | 73 | ||||||||||||||||||||||
Total investment securities | 51 | 1,718 | 4 | 1,773 | ||||||||||||||||||||||
Restricted cash equivalents in mutual funds | 525 | — | — | 525 | ||||||||||||||||||||||
Total | $ | 610 | $ | 1,718 | $ | 4 | $ | 2,332 |
Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 41 | $ | — | $ | — | $ | 41 | ||||||||||||||||||
Cash equivalents in securities | — | 6 | — | 6 | ||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 16 | — | 16 | ||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 79 | — | 79 | ||||||||||||||||||||||
Commercial paper | — | 50 | — | 50 | ||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 155 | — | 155 | ||||||||||||||||||||||
Corporate debt | 5 | 1,292 | 5 | 1,302 | ||||||||||||||||||||||
RMBS | — | 170 | — | 170 | ||||||||||||||||||||||
CMBS | — | 45 | — | 45 | ||||||||||||||||||||||
CDO/ABS | — | 90 | — | 90 | ||||||||||||||||||||||
Total available-for-sale securities | 5 | 1,897 | 5 | 1,907 | ||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
Corporate debt | — | 9 | — | 9 | ||||||||||||||||||||||
RMBS | — | 1 | — | 1 | ||||||||||||||||||||||
CDO/ABS | — | 20 | — | 20 | ||||||||||||||||||||||
Total bonds | — | 30 | — | 30 | ||||||||||||||||||||||
Preferred stock | 22 | — | — | 22 | ||||||||||||||||||||||
Common stock | 32 | — | 1 | 33 | ||||||||||||||||||||||
Total other securities | 54 | 30 | 1 | 85 | ||||||||||||||||||||||
Total investment securities | 59 | 1,927 | 6 | 1,992 | ||||||||||||||||||||||
Restricted cash equivalents in mutual funds | 468 | — | — | 468 | ||||||||||||||||||||||
Total | $ | 568 | $ | 1,933 | $ | 6 | $ | 2,507 |
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) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Interest income | $ | 1,106 | $ | 1,071 | $ | 2,195 | $ | 2,130 | ||||||||||||||||||
Interest expense | 219 | 231 | 438 | 465 | ||||||||||||||||||||||
Provision for finance receivable losses | 339 | 132 | 577 | 130 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 548 | 708 | 1,180 | 1,535 | ||||||||||||||||||||||
Other revenues | 128 | 150 | 290 | 241 | ||||||||||||||||||||||
Other expenses | 396 | 395 | 794 | 766 | ||||||||||||||||||||||
Income before income taxes | 280 | 463 | 676 | 1,010 | ||||||||||||||||||||||
Income taxes | 71 | 113 | 166 | 247 | ||||||||||||||||||||||
Net income | $ | 209 | $ | 350 | $ | 510 | $ | 763 | ||||||||||||||||||
Share Data: | ||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Diluted | $ | 1.68 | $ | 2.60 | $ | 4.04 | $ | 5.67 | ||||||||||||||||||
Selected Financial Statistics (a) | ||||||||||||||||||||||||||
Total finance receivables: | ||||||||||||||||||||||||||
Net finance receivables | $ | 19,448 | $ | 18,163 | $ | 19,448 | $ | 18,163 | ||||||||||||||||||
Average net receivables | $ | 19,160 | $ | 17,717 | $ | 19,122 | $ | 17,770 | ||||||||||||||||||
Yield | 23.13 | % | 24.21 | % | 23.12 | % | 24.14 | % | ||||||||||||||||||
Gross charge-off ratio | 7.35 | % | 5.70 | % | 7.17 | % | 5.75 | % | ||||||||||||||||||
Recovery ratio | (1.41) | % | (1.29) | % | (1.41) | % | (1.22) | % | ||||||||||||||||||
Net charge-off ratio | 5.95 | % | 4.40 | % | 5.76 | % | 4.54 | % | ||||||||||||||||||
Personal loans: | ||||||||||||||||||||||||||
Net finance receivables | $ | 19,384 | $ | 18,163 | $ | 19,384 | $ | 18,163 | ||||||||||||||||||
Origination volume | $ | 3,897 | $ | 3,835 | $ | 6,856 | $ | 6,119 | ||||||||||||||||||
Number of accounts | 2,320,582 | 2,270,043 | 2,320,582 | 2,270,043 | ||||||||||||||||||||||
Number of accounts originated | 395,902 | 389,220 | 682,293 | 614,322 | ||||||||||||||||||||||
30-89 Delinquency ratio | 2.73 | % | 1.76 | % | 2.73 | % | 1.76 | % | ||||||||||||||||||
Credit cards (b): | ||||||||||||||||||||||||||
Net finance receivables | $ | 64 | $ | — | $ | 64 | $ | — | ||||||||||||||||||
Purchase volume | $ | 34 | $ | — | $ | 79 | $ | — | ||||||||||||||||||
Number of open accounts | 78,979 | — | 78,979 | — | ||||||||||||||||||||||
30-89 Delinquency ratio | 6.07 | % | — | % | 6.07 | % | — | % | ||||||||||||||||||
Debt balances: | ||||||||||||||||||||||||||
Long-term debt balance | $ | 17,922 | $ | 17,605 | $ | 17,922 | $ | 17,605 | ||||||||||||||||||
Average daily debt balance | $ | 17,693 | $ | 16,860 | $ | 17,623 | $ | 16,947 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Consumer and Insurance | ||||||||||||||||||||||||||
Income before income taxes - Segment Accounting Basis | $ | 281 | $ | 474 | $ | 677 | $ | 1,041 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | 28 | 1 | 28 | 39 | ||||||||||||||||||||||
Cash-settled stock-based awards | 1 | — | 2 | — | ||||||||||||||||||||||
Direct costs associated with COVID-19 | 1 | 2 | 2 | 4 | ||||||||||||||||||||||
Adjusted pretax income (non-GAAP) | 311 | 477 | 709 | 1,084 | ||||||||||||||||||||||
Provision for finance receivable losses | 338 | 130 | 575 | 127 | ||||||||||||||||||||||
Net charge-offs | (283) | (194) | (545) | (399) | ||||||||||||||||||||||
Pretax capital generation (non-GAAP) | $ | 366 | $ | 413 | $ | 739 | $ | 812 | ||||||||||||||||||
Segment Results |
At or for the Three Months Ended June 30, | At or for the Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Interest income | $ | 1,104 | $ | 1,069 | $ | 2,192 | $ | 2,125 | ||||||||||||||||||
Interest expense | 218 | 230 | 435 | 462 | ||||||||||||||||||||||
Provision for finance receivable losses | 338 | 130 | 575 | 127 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 548 | 709 | 1,182 | 1,536 | ||||||||||||||||||||||
Other revenues | 153 | 148 | 311 | 283 | ||||||||||||||||||||||
Other expenses | 390 | 380 | 784 | 735 | ||||||||||||||||||||||
Adjusted pretax income (non-GAAP) | $ | 311 | $ | 477 | $ | 709 | $ | 1,084 | ||||||||||||||||||
Selected Financial Statistics (a) | ||||||||||||||||||||||||||
Total finance receivables: | ||||||||||||||||||||||||||
Net finance receivables | $ | 19,449 | $ | 18,168 | $ | 19,449 | $ | 18,168 | ||||||||||||||||||
Average net receivables | $ | 19,162 | $ | 17,722 | $ | 19,124 | $ | 17,776 | ||||||||||||||||||
Yield | 23.12 | % | 24.18 | % | 23.11 | % | 24.11 | % | ||||||||||||||||||
Gross charge-off ratio | 7.35 | % | 5.70 | % | 7.17 | % | 5.75 | % | ||||||||||||||||||
Recovery ratio | (1.41) | % | (1.29) | % | (1.41) | % | (1.22) | % | ||||||||||||||||||
Net charge-off ratio | 5.95 | % | 4.41 | % | 5.76 | % | 4.54 | % | ||||||||||||||||||
Personal loans: | ||||||||||||||||||||||||||
Net finance receivables | $ | 19,385 | $ | 18,168 | $ | 19,385 | $ | 18,168 | ||||||||||||||||||
Origination volume | $ | 3,897 | $ | 3,835 | $ | 6,856 | $ | 6,119 | ||||||||||||||||||
Number of accounts | 2,320,582 | 2,270,043 | 2,320,582 | 2,270,043 | ||||||||||||||||||||||
Number of accounts originated | 395,902 | 389,220 | 682,293 | 614,322 | ||||||||||||||||||||||
30-89 Delinquency ratio | 2.73 | % | 1.76 | % | 2.73 | % | 1.76 | % | ||||||||||||||||||
Credit cards (b): | ||||||||||||||||||||||||||
Net finance receivables | $ | 64 | $ | — | $ | 64 | $ | — | ||||||||||||||||||
Purchase volume | $ | 34 | $ | — | $ | 79 | $ | — | ||||||||||||||||||
Number of open accounts | 78,979 | — | 78,979 | — | ||||||||||||||||||||||
30-89 Delinquency ratio | 6.07 | % | — | % | 6.07 | % | — | % |
Credit Quality |
Consumer and Insurance | ||||||||||||||
(dollars in millions) | Personal Loans | Credit Cards | ||||||||||||
June 30, 2022 | ||||||||||||||
Current | $ | 18,440 | $ | 56 | ||||||||||
30-59 days past due | 323 | 2 | ||||||||||||
60-89 days past due | 206 | 2 | ||||||||||||
90+ days past due | 416 | 4 | ||||||||||||
Total net finance receivables | $ | 19,385 | $ | 64 | ||||||||||
Delinquency ratio | ||||||||||||||
30-89 days past due | 2.73 | % | 6.07 | % | ||||||||||
30+ days past due | 4.88 | % | 12.32 | % | ||||||||||
60+ days past due | 3.21 | % | 8.87 | % | ||||||||||
90+ days past due | 2.15 | % | 6.25 | % | ||||||||||
December 31, 2021 | ||||||||||||||
Current | $ | 18,340 | $ | 25 | ||||||||||
30-59 days past due | 282 | — | ||||||||||||
60-89 days past due | 185 | — | ||||||||||||
90+ days past due | 383 | — | ||||||||||||
Total net finance receivables | $ | 19,190 | $ | 25 | ||||||||||
Delinquency ratio | ||||||||||||||
30-89 days past due | 2.43 | % | 0.08 | % | ||||||||||
30+ days past due | 4.43 | % | 0.08 | % | ||||||||||
60+ days past due | 2.96 | % | — | % | ||||||||||
90+ days past due | 2.00 | % | — | % |
(dollars in millions) | Consumer and Insurance | Segment to GAAP Adjustment | Consolidated Total | |||||||||||||||||||||||
Personal Loans | Credit Cards | |||||||||||||||||||||||||
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 | ||||||||||||||||||
Three Months Ended June 30, 2021 (a) | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,075 | $ | — | $ | (13) | $ | 2,062 | ||||||||||||||||||
Provision for finance receivable losses | 130 | — | 2 | 132 | ||||||||||||||||||||||
Charge-offs | (252) | — | — | (252) | ||||||||||||||||||||||
Recoveries | 58 | — | — | 58 | ||||||||||||||||||||||
Balance at end of period | $ | 2,011 | $ | — | $ | (11) | $ | 2,000 | ||||||||||||||||||
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 | % | |||||||||||||||||||
Six Months Ended June 30, 2021 (a) | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,283 | $ | — | $ | (14) | $ | 2,269 | ||||||||||||||||||
Provision for finance receivable losses | 127 | — | 3 | $ | 130 | |||||||||||||||||||||
Charge-offs | (507) | — | — | $ | (507) | |||||||||||||||||||||
Recoveries | 108 | — | — | $ | 108 | |||||||||||||||||||||
Balance at end of period | $ | 2,011 | $ | — | $ | (11) | $ | 2,000 | ||||||||||||||||||
Allowance ratio | 11.07 | % | — | % | (b) | 11.01 | % | |||||||||||||||||||
(dollars in millions) | Personal Loans | Segment to GAAP Adjustment | GAAP Basis | |||||||||||||||||
June 30, 2022 | ||||||||||||||||||||
TDR net finance receivables | $ | 690 | $ | (15) | $ | 675 | ||||||||||||||
Allowance for TDR finance receivable losses | 278 | (6) | 272 | |||||||||||||||||
December 31, 2021 | ||||||||||||||||||||
TDR net finance receivables | $ | 671 | $ | (21) | $ | 650 | ||||||||||||||
Allowance for TDR finance receivable losses | 279 | (9) | 270 |
(dollars in millions) | Personal Loans | Credit Cards | Total | |||||||||||||||||
June 30, 2022 | ||||||||||||||||||||
FICO scores | ||||||||||||||||||||
660 or higher | $ | 4,687 | $ | 9 | $ | 4,696 | ||||||||||||||
620-659 | 5,353 | 22 | 5,375 | |||||||||||||||||
619 or below | 9,344 | 33 | 9,377 | |||||||||||||||||
Total | $ | 19,384 | $ | 64 | $ | 19,448 | ||||||||||||||
December 31, 2021 | ||||||||||||||||||||
FICO scores * | ||||||||||||||||||||
660 or higher | $ | 4,897 | $ | 14 | $ | 4,911 | ||||||||||||||
620-659 | 5,321 | 7 | 5,328 | |||||||||||||||||
619 or below | 8,969 | 4 | 8,973 | |||||||||||||||||
Total | $ | 19,187 | $ | 25 | $ | 19,212 |
Liquidity and Capital Resources |
As of June 30, 2022 | 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 2, 2022 | February 14, 2022 | February 18, 2022 | $ | 0.95 | $ | 121 | |||||||||||||||||||||||
April 28, 2022 | May 9, 2022 | May 13, 2022 | 0.95 | 118 | |||||||||||||||||||||||||
Total | $ | 1.90 | $ | 239 |
(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 2015-3 | $ | 293 | $ | 329 | $ | 42 | $ | 68 | 6.63 | % | 5 years | |||||||||||||||||||||||||||
OMFIT 2016-3 | 350 | 397 | 70 | 156 | 6.08 | % | 5 years | |||||||||||||||||||||||||||||||
OMFIT 2018-1 | 632 | 650 | 174 | 218 | 4.34 | % | 3 years | |||||||||||||||||||||||||||||||
OMFIT 2018-2 | 368 | 381 | 350 | 400 | 3.87 | % | 5 years | |||||||||||||||||||||||||||||||
OMFIT 2019-1 | 632 | 654 | 159 | 206 | 4.59 | % | 2 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 | 737 | 820 | 4.15 | % | 2 years | |||||||||||||||||||||||||||||||
OMFIT 2020-2 | 1,000 | 1,053 | 1,000 | 1,053 | 2.03 | % | 5 years | |||||||||||||||||||||||||||||||
OMFIT 2021-1 | 850 | 904 | 850 | 904 | 1.74 | % | 5 years | |||||||||||||||||||||||||||||||
OMFIT 2022-S1 (c) | 600 | 652 | 600 | 652 | 4.31 | % | 3 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 (d) | 600 | 632 | 600 | 632 | 4.56 | % | 2 years | |||||||||||||||||||||||||||||||
Total securitizations | $ | 9,572 | $ | 10,252 | $ | 7,932 | $ | 8,799 |
(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 | — | ||||||||||||
Chicago River Funding, LLC | 375 | — | ||||||||||||
Hudson River Funding, LLC | 500 | — | ||||||||||||
OneMain Financial Funding VIII, LLC | 400 | — | ||||||||||||
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 | — | ||||||||||||
River Thames Funding, LLC | 400 | 250 | ||||||||||||
St. Lawrence River Funding, LLC | 250 | 250 | ||||||||||||
Total | $ | 5,775 | $ | 500 |
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 | 866,034 | $ | 47.15 | 866,034 | $ | 877,491,155 | ||||||||||||||||||||
May 1 - May 31 | 871,367 | 43.72 | 871,367 | 839,396,960 | ||||||||||||||||||||||
June 1 - June 30 | 358,996 | 41.22 | 358,996 | 824,597,401 | ||||||||||||||||||||||
Total | 2,096,397 | $ | 44.71 | 2,096,397 | ||||||||||||||||||||||
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 29, 2022 | 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 29, 2022 | By: | /s/ Micah R. Conrad | |||||||||||
Micah R. Conrad | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
(Duly Authorized Officer and Principal Financial Officer) |
1 Year OneMain Chart |
1 Month OneMain Chart |
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