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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 | |
---|---|---|---|---|---|---|---|---|
0.39 | 0.77% | 51.20 | 51.83 | 50.86 | 51.54 | 1,019,451 | 01:00:00 |
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, 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 | |||||||
Corporate AMT | Corporate Alternative Minimum Tax, as implemented by the Inflation Reduction Act | |||||||
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 | |||||||
IRA | Inflation Reduction Act, signed into law on August 16, 2022 | |||||||
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 | |||||||
ODART | OneMain Direct Auto Receivables Trust |
Term or Abbreviation | Definition | |||||||
OMFC | OneMain Finance Corporation | |||||||
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 | |||||||
Revenue yield | annualized credit card finance charges, net of merchant and ancillary servicing fees, as a percentage of average net credit card 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; 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, 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) | March 31, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 544 | $ | 498 | ||||||||||
Investment securities (includes available-for-sale securities with a fair value of $1.7 billion and an amortized cost basis of $1.9 billion in 2023 and 2022) | 1,786 | 1,800 | ||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion in 2023 and $10.4 billion in 2022) | 19,809 | 19,986 | ||||||||||||
Unearned insurance premium and claim reserves | (740) | (749) | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022) | (2,298) | (2,311) | ||||||||||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,771 | 16,926 | ||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022) | 531 | 461 | ||||||||||||
Goodwill | 1,437 | 1,437 | ||||||||||||
Other intangible assets | 261 | 261 | ||||||||||||
Other assets | 1,113 | 1,154 | ||||||||||||
Total assets | $ | 22,443 | $ | 22,537 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022) | $ | 18,206 | $ | 18,281 | ||||||||||
Insurance claims and policyholder liabilities | 615 | 620 | ||||||||||||
Deferred and accrued taxes | 22 | 5 | ||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022) | 519 | 616 | ||||||||||||
Total liabilities | 19,362 | 19,522 | ||||||||||||
Contingencies (Note 12) | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 120,587,214 and 121,042,125 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 1 | 1 | ||||||||||||
Additional paid-in capital | 1,693 | 1,689 | ||||||||||||
Accumulated other comprehensive loss | (108) | (127) | ||||||||||||
Retained earnings | 2,188 | 2,119 | ||||||||||||
Treasury stock, at cost; 14,475,790 and 13,813,476 shares at March 31, 2023 and December 31, 2022, respectively | (693) | (667) | ||||||||||||
Total shareholders’ equity | 3,081 | 3,015 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 22,443 | $ | 22,537 |
Three Months Ended March 31, | ||||||||||||||
(dollars in millions, except per share amounts) | 2023 | 2022 | ||||||||||||
Interest income | $ | 1,094 | $ | 1,089 | ||||||||||
Interest expense | 239 | 219 | ||||||||||||
Net interest income | 855 | 870 | ||||||||||||
Provision for finance receivable losses | 385 | 238 | ||||||||||||
Net interest income after provision for finance receivable losses | 470 | 632 | ||||||||||||
Other revenues: | ||||||||||||||
Insurance | 111 | 111 | ||||||||||||
Investment | 25 | 15 | ||||||||||||
Gain on sales of finance receivables | 17 | 17 | ||||||||||||
Other | 24 | 19 | ||||||||||||
Total other revenues | 177 | 162 | ||||||||||||
Other expenses: | ||||||||||||||
Salaries and benefits | 212 | 205 | ||||||||||||
Other operating expenses | 153 | 148 | ||||||||||||
Insurance policy benefits and claims | 47 | 42 | ||||||||||||
Total other expenses | 412 | 395 | ||||||||||||
Income before income taxes | 235 | 399 | ||||||||||||
Income taxes | 56 | 96 | ||||||||||||
Net income | $ | 179 | $ | 303 | ||||||||||
Share Data: | ||||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||
Basic | 120,765,661 | 127,075,714 | ||||||||||||
Diluted | 120,969,891 | 127,463,027 | ||||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | 1.48 | $ | 2.38 | ||||||||||
Diluted | $ | 1.48 | $ | 2.38 |
Three Months Ended March 31, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Net income | $ | 179 | $ | 303 | ||||||||||
Other comprehensive income (loss): | ||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 24 | (105) | ||||||||||||
Foreign currency translation adjustments | — | 2 | ||||||||||||
Changes in discount rate for insurance claims and policyholder liabilities | 4 | 32 | ||||||||||||
Other | (3) | 13 | ||||||||||||
Income tax effect: | ||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (5) | 24 | ||||||||||||
Foreign currency translation adjustments | — | (1) | ||||||||||||
Changes in discount rate for insurance claims and policyholder liabilities | (1) | (7) | ||||||||||||
Other | — | (3) | ||||||||||||
Other comprehensive income (loss), net of tax, before reclassification adjustments | 19 | (45) | ||||||||||||
Reclassification adjustments included in net income, net of tax: | ||||||||||||||
Net realized losses on available-for-sale securities, net of tax | — | (2) | ||||||||||||
Reclassification adjustments included in net income, net of tax | — | (2) | ||||||||||||
Other comprehensive income (loss), net of tax | 19 | (47) | ||||||||||||
Comprehensive income | $ | 198 | $ | 256 |
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 March 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | 1 | $ | 1,689 | $ | (127) | $ | 2,119 | $ | (667) | $ | 3,015 | ||||||||||||||||||||||||||
— | — | — | 12 | — | 12 | |||||||||||||||||||||||||||||||||
Balance, January 1, 2023 (post-adoption) | 1 | 1,689 | (127) | 2,131 | (667) | 3,027 | ||||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | (27) | (27) | ||||||||||||||||||||||||||||||||
Treasury stock issued | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 12 | — | — | — | 12 | ||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | (8) | — | — | — | (8) | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | 19 | — | — | 19 | ||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | (122) | — | (122) | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 179 | — | 179 | ||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | 1 | $ | 1,693 | $ | (108) | $ | 2,188 | $ | (693) | $ | 3,081 | ||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | 1 | $ | 1,672 | $ | 5 | $ | 1,727 | $ | (368) | $ | 3,037 | ||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | (110) | (110) | ||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 12 | — | — | — | 12 | ||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | (12) | — | — | — | (12) | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | (47) | — | — | (47) | ||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | (123) | — | (123) | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 303 | — | 303 | ||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | 1 | $ | 1,672 | $ | (42) | $ | 1,907 | $ | (478) | $ | 3,060 | ||||||||||||||||||||||||||
* Cash dividends declared were $1.00 per share and $0.95 per share during the three months ended March 31, 2023 and 2022, respectively. | ||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 179 | $ | 303 | ||||||||||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | 385 | 238 | ||||||||||||
Depreciation and amortization | 61 | 61 | ||||||||||||
Deferred income tax charge | 9 | 22 | ||||||||||||
Share-based compensation expense, net of forfeitures | 12 | 12 | ||||||||||||
Gain on sales of finance receivables | (17) | (17) | ||||||||||||
Other | (1) | (2) | ||||||||||||
Cash flows due to changes in other assets and other liabilities | (66) | (65) | ||||||||||||
Net cash provided by operating activities | 562 | 552 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations and purchases of finance receivables | (432) | (245) | ||||||||||||
Proceeds from sales of finance receivables | 200 | 200 | ||||||||||||
Available-for-sale securities purchased | (44) | (90) | ||||||||||||
Available-for-sale securities called, sold, and matured | 88 | 196 | ||||||||||||
Other securities purchased | (2) | (2) | ||||||||||||
Other securities called, sold, and matured | 2 | 7 | ||||||||||||
Other, net | (16) | (16) | ||||||||||||
Net cash provided by (used for) investing activities | (204) | 50 | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | 843 | 198 | ||||||||||||
Repayments and repurchases of long-term debt | (928) | (398) | ||||||||||||
Cash dividends | (123) | (126) | ||||||||||||
Common stock repurchased | (27) | (110) | ||||||||||||
Treasury stock issued | 1 | — | ||||||||||||
Withholding tax on share-based compensation | (8) | (12) | ||||||||||||
Net cash used for financing activities | (242) | (448) | ||||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 116 | 154 | ||||||||||||
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 | $ | 1,075 | $ | 1,171 | ||||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | $ | 544 | $ | 640 | ||||||||||
Restricted cash and restricted cash equivalents | 531 | 531 | ||||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | 1,075 | $ | 1,171 | ||||||||||
(dollars in millions, except par value amount) | March 31, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 533 | $ | 490 | ||||||||||
Investment securities (includes available-for-sale securities with a fair value of $1.7 billion and an amortized cost basis of $1.9 billion in 2023 and 2022) | 1,786 | 1,800 | ||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion in 2023 and $10.4 billion in 2022) | 19,809 | 19,986 | ||||||||||||
Unearned insurance premium and claim reserves | (740) | (749) | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022) | (2,298) | (2,311) | ||||||||||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,771 | 16,926 | ||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022) | 531 | 461 | ||||||||||||
Goodwill | 1,437 | 1,437 | ||||||||||||
Other intangible assets | 261 | 261 | ||||||||||||
Other assets | 1,113 | 1,152 | ||||||||||||
Total assets | $ | 22,432 | $ | 22,527 | ||||||||||
Liabilities and Shareholder’s Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022) | $ | 18,206 | $ | 18,281 | ||||||||||
Insurance claims and policyholder liabilities | 615 | 620 | ||||||||||||
Deferred and accrued taxes | 23 | 5 | ||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022) | 520 | 617 | ||||||||||||
Total liabilities | 19,364 | 19,523 | ||||||||||||
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 March 31, 2023 and December 31, 2022 | 5 | 5 | ||||||||||||
Additional paid-in capital | 1,937 | 1,933 | ||||||||||||
Accumulated other comprehensive loss | (108) | (127) | ||||||||||||
Retained earnings | 1,234 | 1,193 | ||||||||||||
Total shareholder’s equity | 3,068 | 3,004 | ||||||||||||
Total liabilities and shareholder’s equity | $ | 22,432 | $ | 22,527 |
Three Months Ended March 31, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Interest income | $ | 1,094 | $ | 1,089 | ||||||||||
Interest expense | 239 | 219 | ||||||||||||
Net interest income | 855 | 870 | ||||||||||||
Provision for finance receivable losses | 385 | 238 | ||||||||||||
Net interest income after provision for finance receivable losses | 470 | 632 | ||||||||||||
Other revenues: | ||||||||||||||
Insurance | 111 | 111 | ||||||||||||
Investment | 25 | 15 | ||||||||||||
Gain on sales of finance receivables | 17 | 17 | ||||||||||||
Other | 24 | 19 | ||||||||||||
Total other revenues | 177 | 162 | ||||||||||||
Other expenses: | ||||||||||||||
Salaries and benefits | 212 | 205 | ||||||||||||
Other operating expenses | 153 | 148 | ||||||||||||
Insurance policy benefits and claims | 47 | 42 | ||||||||||||
Total other expenses | 412 | 395 | ||||||||||||
Income before income taxes | 235 | 399 | ||||||||||||
Income taxes | 56 | 96 | ||||||||||||
Net income | $ | 179 | $ | 303 |
Three Months Ended March 31, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Net income | $ | 179 | $ | 303 | ||||||||||
Other comprehensive income (loss): | ||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 24 | (105) | ||||||||||||
Foreign currency translation adjustments | — | 2 | ||||||||||||
Changes in discount rate for insurance claims and policyholder liabilities | 4 | 32 | ||||||||||||
Other | (3) | 13 | ||||||||||||
Income tax effect: | ||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (5) | 24 | ||||||||||||
Foreign currency translation adjustments | — | (1) | ||||||||||||
Changes in discount rate for insurance claims and policyholder liabilities | (1) | (7) | ||||||||||||
Other | — | (3) | ||||||||||||
Other comprehensive income (loss), net of tax, before reclassification adjustments | 19 | (45) | ||||||||||||
Reclassification adjustments included in net income, net of tax: | ||||||||||||||
Net realized losses on available-for-sale securities, net of tax | — | (2) | ||||||||||||
Reclassification adjustments included in net income, net of tax | — | (2) | ||||||||||||
Other comprehensive income (loss), net of tax | 19 | (47) | ||||||||||||
Comprehensive income | $ | 198 | $ | 256 |
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 March 31, 2023 | ||||||||||||||||||||||||||||||||
Balance, January 1, 2023 | $ | 5 | $ | 1,933 | $ | (127) | $ | 1,193 | $ | 3,004 | ||||||||||||||||||||||
— | — | — | 12 | 12 | ||||||||||||||||||||||||||||
Balance, January 1, 2023 (post-adoption) | 5 | 1,933 | (127) | 1,205 | 3,016 | |||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 12 | — | — | 12 | |||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | (8) | — | — | (8) | |||||||||||||||||||||||||||
Other comprehensive income | — | — | 19 | — | 19 | |||||||||||||||||||||||||||
Cash dividends | — | — | — | (150) | (150) | |||||||||||||||||||||||||||
Net income | — | — | — | 179 | 179 | |||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | 5 | $ | 1,937 | $ | (108) | $ | 1,234 | $ | 3,068 | ||||||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | 5 | $ | 1,916 | $ | 5 | $ | 1,078 | $ | 3,004 | ||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 12 | — | — | 12 | |||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | (12) | — | — | (12) | |||||||||||||||||||||||||||
Other comprehensive loss | — | — | (47) | — | (47) | |||||||||||||||||||||||||||
Cash dividends | — | — | — | (223) | (223) | |||||||||||||||||||||||||||
Net income | — | — | — | 303 | 303 | |||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | 5 | $ | 1,916 | $ | (42) | $ | 1,158 | $ | 3,037 | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income | $ | 179 | $ | 303 | ||||||||||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | 385 | 238 | ||||||||||||
Depreciation and amortization | 61 | 61 | ||||||||||||
Deferred income tax charge | 9 | 22 | ||||||||||||
Share-based compensation expense, net of forfeitures | 12 | 12 | ||||||||||||
Gain on sales of finance receivables | (17) | (17) | ||||||||||||
Other | (1) | (2) | ||||||||||||
Cash flows due to changes in other assets and other liabilities | (66) | (64) | ||||||||||||
Net cash provided by operating activities | 562 | 553 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations and purchases of finance receivables | (432) | (245) | ||||||||||||
Proceeds from sales of finance receivables | 200 | 200 | ||||||||||||
Available-for-sale securities purchased | (44) | (90) | ||||||||||||
Available-for-sale securities called, sold, and matured | 88 | 196 | ||||||||||||
Other securities purchased | (2) | (2) | ||||||||||||
Other securities called, sold, and matured | 2 | 7 | ||||||||||||
Other, net | (16) | (16) | ||||||||||||
Net cash provided by (used for) investing activities | (204) | 50 | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance and borrowings of long-term debt, net of issuance costs | 843 | 198 | ||||||||||||
Repayments and repurchases of long-term debt | (928) | (398) | ||||||||||||
Cash dividends | (152) | (226) | ||||||||||||
Withholding tax on share-based compensation | (8) | (12) | ||||||||||||
Net cash used for financing activities | (245) | (438) | ||||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 113 | 165 | ||||||||||||
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 | $ | 1,064 | $ | 1,151 | ||||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | $ | 533 | $ | 620 | ||||||||||
Restricted cash and restricted cash equivalents | 531 | 531 | ||||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | 1,064 | $ | 1,151 | ||||||||||
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) | $ | 1,150 | $ | 4 | $ | 1,154 | ||||||||||||||
Other assets (OMFC only) | 1,148 | 4 | 1,152 | |||||||||||||||||
Insurance claims and policyholder liabilities | 602 | 18 | 620 | |||||||||||||||||
Accumulated other comprehensive loss | (119) | (8) | (127) | |||||||||||||||||
Retained earnings (OMH only) | 2,125 | (6) | 2,119 | |||||||||||||||||
Retained earnings (OMFC only) | 1,199 | (6) | 1,193 | |||||||||||||||||
March 31, 2022 | ||||||||||||||||||||
Other assets (OMH only) | $ | 981 | $ | 8 | $ | 989 | ||||||||||||||
Other assets (OMFC only) | 980 | 8 | 988 | |||||||||||||||||
Insurance claims and policyholder liabilities | 621 | 37 | 658 | |||||||||||||||||
Accumulated other comprehensive loss | (11) | (31) | (42) | |||||||||||||||||
Retained earnings (OMH only) | 1,905 | 2 | 1,907 | |||||||||||||||||
Retained earnings (OMFC only) | 1,156 | 2 | 1,158 | |||||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Other assets (OMH only) | $ | 1,003 | $ | 16 | $ | 1,019 | ||||||||||||||
Other assets (OMFC only) | 1,001 | 16 | 1,017 | |||||||||||||||||
Insurance claims and policyholder liabilities | 621 | 72 | 693 | |||||||||||||||||
Accumulated other comprehensive income | 61 | (56) | 5 | |||||||||||||||||
January 1, 2021 | ||||||||||||||||||||
Other assets (OMH and OMFC) | $ | 1,054 | $ | 21 | $ | 1,075 | ||||||||||||||
Insurance claims and policyholder liabilities | 621 | 97 | 718 | |||||||||||||||||
Accumulated other comprehensive income | 94 | (76) | 18 | |||||||||||||||||
(dollars in millions, except per share amounts) | As Reported | ASU 2018-12 Adjustment | As Recast | |||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Insurance policy benefits and claims | $ | 45 | $ | (3) | $ | 42 | ||||||||||||||
Income before income taxes | 396 | 3 | 399 | |||||||||||||||||
Income taxes | 95 | 1 | 96 | |||||||||||||||||
Net income | 301 | 2 | 303 | |||||||||||||||||
Basic EPS (OMH only) | 2.37 | 0.01 | 2.38 | |||||||||||||||||
Diluted EPS (OMH only) | 2.36 | 0.02 | 2.38 |
(dollars in millions) | As Reported | ASU 2018-12 Adjustment | As Recast | |||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Comprehensive income | $ | 229 | $ | 27 | $ | 256 |
(dollars in millions) | As Reported | ASU 2018-12 Adjustment | As Recast | |||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Net income | $ | 301 | $ | 2 | $ | 303 | ||||||||||||||
Deferred income tax charge | 21 | 1 | 22 | |||||||||||||||||
Cash flows due to changes in other assets and other liabilities (OMH only) | (62) | (3) | (65) | |||||||||||||||||
Cash flows due to changes in other assets and other liabilities (OMFC only) | (61) | (3) | (64) |
3. Finance Receivables |
(dollars in millions) | Personal Loans | Credit Cards | Total | |||||||||||||||||
March 31, 2023 | ||||||||||||||||||||
Gross finance receivables * | $ | 19,444 | $ | 121 | $ | 19,565 | ||||||||||||||
Unearned fees | (215) | — | (215) | |||||||||||||||||
Accrued finance charges and fees | 276 | — | 276 | |||||||||||||||||
Deferred origination costs | 182 | 1 | 183 | |||||||||||||||||
Total | $ | 19,687 | $ | 122 | $ | 19,809 | ||||||||||||||
December 31, 2022 | ||||||||||||||||||||
Gross finance receivables * | $ | 19,615 | $ | 107 | $ | 19,722 | ||||||||||||||
Unearned fees | (220) | — | (220) | |||||||||||||||||
Accrued finance charges and fees | 299 | — | 299 | |||||||||||||||||
Deferred origination costs | 185 | — | 185 | |||||||||||||||||
Total | $ | 19,879 | $ | 107 | $ | 19,986 |
(dollars in millions) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||||||||||||||
Current | $ | 2,641 | $ | 9,224 | $ | 4,195 | $ | 1,464 | $ | 861 | $ | 260 | $ | 18,645 | ||||||||||||||||||||||||||||||
30-59 days past due | 3 | 137 | 98 | 31 | 19 | 9 | 297 | |||||||||||||||||||||||||||||||||||||
60-89 days past due | — | 98 | 72 | 22 | 13 | 6 | 211 | |||||||||||||||||||||||||||||||||||||
Total performing | 2,644 | 9,459 | 4,365 | 1,517 | 893 | 275 | 19,153 | |||||||||||||||||||||||||||||||||||||
Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
90+ days past due | — | 217 | 206 | 61 | 35 | 15 | 534 | |||||||||||||||||||||||||||||||||||||
Total | $ | 2,644 | $ | 9,676 | $ | 4,571 | $ | 1,578 | $ | 928 | $ | 290 | $ | 19,687 | ||||||||||||||||||||||||||||||
Gross charge-offs | $ | — | $ | 139 | $ | 199 | $ | 59 | $ | 34 | $ | 14 | $ | 445 |
(dollars in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Performing | ||||||||||||||||||||||||||||||||||||||||||||
Current | $ | 10,614 | $ | 4,927 | $ | 1,758 | $ | 1,081 | $ | 240 | $ | 105 | $ | 18,725 | ||||||||||||||||||||||||||||||
30-59 days past due | 136 | 136 | 43 | 28 | 9 | 5 | 357 | |||||||||||||||||||||||||||||||||||||
60-89 days past due | 92 | 101 | 32 | 19 | 6 | 3 | 253 | |||||||||||||||||||||||||||||||||||||
Total performing | 10,842 | 5,164 | 1,833 | 1,128 | 255 | 113 | 19,335 | |||||||||||||||||||||||||||||||||||||
Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
90+ days past due | 160 | 246 | 74 | 44 | 13 | 7 | 544 | |||||||||||||||||||||||||||||||||||||
Total | $ | 11,002 | $ | 5,410 | $ | 1,907 | $ | 1,172 | $ | 268 | $ | 120 | $ | 19,879 |
(dollars in millions) | March 31, 2023 | December 31, 2022 | ||||||||||||
Current | $ | 106 | $ | 93 | ||||||||||
30-59 days past due | 4 | 3 | ||||||||||||
60-89 days past due | 3 | 3 | ||||||||||||
90+ days past due | 9 | 8 | ||||||||||||
Total | $ | 122 | $ | 107 | ||||||||||
(dollars in millions) | Three Months Ended March 31, 2023 | |||||||
Interest rate reduction and term extension | $ | 126 | ||||||
Interest rate reduction and principal forgiveness | 96 | |||||||
Payment delays | — | |||||||
Total modifications to borrowers experiencing financial difficulties | $ | 222 | ||||||
Modifications as a percent of net finance receivables | 1.13 | % | ||||||
(dollars in millions) | Three Months Ended March 31, 2023 | |||||||
Weighted-average interest rate reduction | 21.32 | % | ||||||
Weighted-average term extension (months) | 19 | |||||||
Principal/interest forgiveness | $ | 11 |
(dollars in millions) | March 31, 2023 | |||||||
Current | $ | 159 | ||||||
30-59 days past due | 27 | |||||||
60-89 days past due | 14 | |||||||
90+ days past due | 22 | |||||||
Total | $ | 222 | ||||||
(dollars in millions) | December 31, 2022 | |||||||
TDR gross finance receivables | $ | 898 | ||||||
TDR net finance receivables * | 904 | |||||||
Allowance for TDR finance receivable losses | 369 | |||||||
(dollars in millions) | Three Months Ended March 31, 2022 | |||||||
Pre-modification TDR net finance receivables | $ | 134 | ||||||
Post-modification TDR net finance receivables: | ||||||||
Rate reduction | 87 | |||||||
Other * | 47 | |||||||
Total post-modification TDR net finance receivables | $ | 134 | ||||||
Number of TDR accounts | 16,165 | |||||||
(dollars in millions) | Three Months Ended March 31, 2022 | |||||||
TDR net finance receivables * | $ | 30 | ||||||
Number of TDR accounts | 3,796 | |||||||
4. Allowance for Finance Receivable Losses |
(dollars in millions) | Personal Loans | Credit Cards | Total | |||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||
Balance at beginning of period | $ | 2,290 | $ | 21 | $ | 2,311 | ||||||||||||||
Impact of adoption of ASU 2022-02 * | (16) | — | (16) | |||||||||||||||||
Provision for finance receivable losses | 377 | 8 | 385 | |||||||||||||||||
Charge-offs | (445) | (6) | (451) | |||||||||||||||||
Recoveries | 69 | — | 69 | |||||||||||||||||
Balance at end of period | $ | 2,275 | $ | 23 | $ | 2,298 | ||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||
Balance at beginning of period | $ | 2,090 | $ | 5 | $ | 2,095 | ||||||||||||||
Provision for finance receivable losses | 233 | 5 | 238 | |||||||||||||||||
Charge-offs | (329) | — | (329) | |||||||||||||||||
Recoveries | 67 | — | 67 | |||||||||||||||||
Balance at end of period | $ | 2,061 | $ | 10 | $ | 2,071 | ||||||||||||||
5. Investment Securities |
(dollars in millions) | Cost/ Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||
March 31, 2023* | ||||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 17 | $ | — | $ | (1) | $ | 16 | ||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 73 | — | (6) | 67 | ||||||||||||||||||||||
Commercial paper | 55 | — | — | 55 | ||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 151 | — | (7) | 144 | ||||||||||||||||||||||
Corporate debt | 1,219 | 3 | (99) | 1,123 | ||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||
RMBS | 213 | — | (23) | 190 | ||||||||||||||||||||||
CMBS | 38 | — | (3) | 35 | ||||||||||||||||||||||
CDO/ABS | 93 | — | (7) | 86 | ||||||||||||||||||||||
Total | $ | 1,859 | $ | 3 | $ | (146) | $ | 1,716 | ||||||||||||||||||
December 31, 2022* | ||||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 17 | $ | — | $ | (1) | $ | 16 | ||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 74 | — | (8) | 66 | ||||||||||||||||||||||
Commercial paper | 55 | — | — | 55 | ||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 150 | — | (8) | 142 | ||||||||||||||||||||||
Corporate debt | 1,251 | 1 | (115) | 1,137 | ||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||
RMBS | 217 | — | (25) | 192 | ||||||||||||||||||||||
CMBS | 38 | — | (3) | 35 | ||||||||||||||||||||||
CDO/ABS | 95 | — | (9) | 86 | ||||||||||||||||||||||
Total | $ | 1,897 | $ | 1 | $ | (169) | $ | 1,729 | ||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
(dollars in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 10 | $ | — | $ | 6 | $ | (1) | $ | 16 | $ | (1) | ||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 12 | — | 50 | (6) | 62 | (6) | ||||||||||||||||||||||||||||||||
Commercial paper | 51 | — | — | — | 51 | — | ||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 30 | — | 93 | (7) | 123 | (7) | ||||||||||||||||||||||||||||||||
Corporate debt | 311 | (8) | 712 | (91) | 1,023 | (99) | ||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||
RMBS | 48 | (2) | 125 | (21) | 173 | (23) | ||||||||||||||||||||||||||||||||
CMBS | 9 | — | 26 | (3) | 35 | (3) | ||||||||||||||||||||||||||||||||
CDO/ABS | 18 | — | 58 | (7) | 76 | (7) | ||||||||||||||||||||||||||||||||
Total | $ | 489 | $ | (10) | $ | 1,070 | $ | (136) | $ | 1,559 | $ | (146) | ||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 10 | $ | — | $ | 6 | $ | (1) | $ | 16 | $ | (1) | ||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 48 | (5) | 15 | (3) | 63 | (8) | ||||||||||||||||||||||||||||||||
Commercial paper | 51 | — | — | — | 51 | — | ||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 104 | (3) | 32 | (5) | 136 | (8) | ||||||||||||||||||||||||||||||||
Corporate debt | 779 | (54) | 299 | (61) | 1,078 | (115) | ||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||
RMBS | 106 | (9) | 68 | (16) | 174 | (25) | ||||||||||||||||||||||||||||||||
CMBS | 21 | (2) | 13 | (1) | 34 | (3) | ||||||||||||||||||||||||||||||||
CDO/ABS | 45 | (3) | 35 | (6) | 80 | (9) | ||||||||||||||||||||||||||||||||
Total | $ | 1,164 | $ | (76) | $ | 468 | $ | (93) | $ | 1,632 | $ | (169) |
(dollars in millions) | Fair Value | Amortized Cost | ||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||||||||||||||
Due in 1 year or less | $ | 192 | $ | 194 | ||||||||||
Due after 1 year through 5 years | 544 | 571 | ||||||||||||
Due after 5 years through 10 years | 532 | 592 | ||||||||||||
Due after 10 years | 137 | 158 | ||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 311 | 344 | ||||||||||||
Total | $ | 1,716 | $ | 1,859 |
(dollars in millions) | March 31, 2023 | December 31, 2022 | ||||||||||||
Fixed maturity other securities: | ||||||||||||||
Bonds | $ | 21 | $ | 23 | ||||||||||
Preferred stock * | 16 | 15 | ||||||||||||
Common stock * | 33 | 33 | ||||||||||||
Total | $ | 70 | $ | 71 |
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%-7.07% | 5.77% | 5.55% | 3.50%-8.25% | 6.58 | % | ||||||||||||||||||||||||||||||||
Remainder of 2023 | $ | — | $ | — | $ | — | $ | 226 | $ | — | $ | 226 | ||||||||||||||||||||||||||
2024 | — | — | — | 1,270 | — | 1,270 | ||||||||||||||||||||||||||||||||
2025 | — | — | — | 1,249 | — | 1,249 | ||||||||||||||||||||||||||||||||
2026 | — | — | — | 1,600 | — | 1,600 | ||||||||||||||||||||||||||||||||
2027 | — | — | — | 750 | — | 750 | ||||||||||||||||||||||||||||||||
2028-2067 | — | — | — | 2,932 | 350 | 3,282 | ||||||||||||||||||||||||||||||||
Secured (c) | 9,654 | 350 | 100 | — | — | 10,104 | ||||||||||||||||||||||||||||||||
Total principal maturities | $ | 9,654 | $ | 350 | $ | 100 | $ | 8,027 | $ | 350 | $ | 18,481 | ||||||||||||||||||||||||||
Total carrying amount | $ | 9,611 | $ | 349 | $ | 100 | $ | 7,974 | $ | 172 | $ | 18,206 | ||||||||||||||||||||||||||
Debt issuance costs (d) | (40) | (1) | — | (57) | — | (98) |
7. Variable Interest Entities |
(dollars in millions) | March 31, 2023 | December 31, 2022 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 2 | $ | 2 | ||||||||||
Net finance receivables | 11,108 | 10,432 | ||||||||||||
Allowance for finance receivable losses | 1,206 | 1,126 | ||||||||||||
Restricted cash and restricted cash equivalents | 513 | 442 | ||||||||||||
Other assets | 29 | 28 | ||||||||||||
Liabilities | ||||||||||||||
Long-term debt | $ | 10,060 | $ | 9,361 | ||||||||||
Other liabilities | 20 | 20 |
8. Insurance |
At or for the Three Months Ended March 31, | ||||||||||||||
(dollars in millions) | 2023 | 2022 (a) | ||||||||||||
Balance at beginning of period | $ | 93 | $ | 102 | ||||||||||
Less reinsurance recoverables | (3) | (3) | ||||||||||||
Net balance at beginning of period | 90 | 99 | ||||||||||||
Additions for losses and loss adjustment expenses incurred to: | ||||||||||||||
Current year | 42 | 46 | ||||||||||||
Prior years (b) | (1) | (6) | ||||||||||||
Total | 41 | 40 | ||||||||||||
Reductions for losses and loss adjustment expenses paid related to: | ||||||||||||||
Current year | (12) | (13) | ||||||||||||
Prior years | (27) | (27) | ||||||||||||
Total | (39) | (40) | ||||||||||||
Net balance at end of period | 92 | 99 | ||||||||||||
Plus reinsurance recoverables | 3 | 3 | ||||||||||||
Balance at end of period | $ | 95 | $ | 102 |
At or for the Three Months Ended March 31, | ||||||||||||||||||||||||||
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 | $ | 252 | $ | 48 | $ | 313 | $ | 69 | ||||||||||||||||||
Effect of cumulative changes in discount rate assumptions (beginning of period) | (8) | — | (53) | (10) | ||||||||||||||||||||||
Beginning balance at original discount rate | 244 | 48 | 260 | 59 | ||||||||||||||||||||||
Effect of actual variances from expected experience | (2) | — | 1 | — | ||||||||||||||||||||||
Adjusted balance at beginning of period | 242 | 48 | 261 | 59 | ||||||||||||||||||||||
Interest accretion | 6 | — | 27 | (1) | ||||||||||||||||||||||
Net premiums collected | (7) | (2) | (10) | (2) | ||||||||||||||||||||||
Ending balance at original discount rate | 241 | 46 | 278 | 56 | ||||||||||||||||||||||
Effect of changes in discount rate assumptions | 5 | — | 35 | 6 | ||||||||||||||||||||||
Balance at ending of period | $ | 246 | $ | 46 | $ | 313 | $ | 62 |
At or for the Three Months Ended March 31, | ||||||||||||||||||||||||||
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 | $ | 483 | $ | 126 | $ | 601 | $ | 165 | ||||||||||||||||||
Effect of cumulative changes in discount rate assumptions (beginning of period) | (17) | (1) | (109) | (27) | ||||||||||||||||||||||
Beginning balance at original discount rate | 466 | 125 | 492 | 138 | ||||||||||||||||||||||
Effect of actual variances from expected experience | 1 | (1) | 2 | (1) | ||||||||||||||||||||||
Adjusted balance at beginning of period | 467 | 124 | 494 | 137 | ||||||||||||||||||||||
Net issuances | 1 | — | 1 | — | ||||||||||||||||||||||
Interest accretion | 9 | 3 | 27 | 1 | ||||||||||||||||||||||
Benefit payments | (16) | (4) | (17) | (4) | ||||||||||||||||||||||
Ending balance at original discount rate | 461 | 123 | 505 | 134 | ||||||||||||||||||||||
Effect of changes in discount rate assumptions | 12 | — | 66 | 14 | ||||||||||||||||||||||
Balance at ending of period | $ | 473 | $ | 123 | $ | 571 | $ | 148 |
At or for the Three Months Ended March 31, | ||||||||||||||||||||||||||
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 | $ | 227 | $ | 77 | $ | 258 | $ | 86 | ||||||||||||||||||
Deferred profit liability | 15 | 54 | 16 | 61 | ||||||||||||||||||||||
Total net liability for future policy benefits | $ | 242 | $ | 131 | $ | 274 | $ | 147 |
At or for the Three Months Ended March 31, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Term and whole life | $ | 242 | $ | 274 | ||||||||||
Accidental death and disability protection | 131 | 147 | ||||||||||||
Other* | 242 | 237 | ||||||||||||
Total | $ | 615 | $ | 658 |
At or for the Three Months Ended March 31, | ||||||||||||||||||||||||||
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 | $ | 466 | $ | 159 | $ | 586 | $ | 181 | ||||||||||||||||||
Discounted | 326 | 114 | 442 | 142 | ||||||||||||||||||||||
Expected future benefit payments: | ||||||||||||||||||||||||||
Undiscounted | 670 | 181 | 741 | 198 | ||||||||||||||||||||||
Discounted | 473 | 123 | 571 | 148 |
At or for the Three Months Ended March 31, | ||||||||||||||||||||||||||
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 | $ | 11 | $ | 5 | $ | 17 | $ | 5 | ||||||||||||||||||
Interest accretion | 3 | 3 | — | 1 | ||||||||||||||||||||||
Total | $ | 14 | $ | 8 | $ | 17 | $ | 6 |
At or for the Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | |||||||||||||||||||||||
Mortality/Morbidity: | ||||||||||||||||||||||||||
Expected | 0.39 | % | 0.01 | % | 0.40 | % | 0.01 | % | ||||||||||||||||||
Actual | 0.31 | % | 0.01 | % | 0.43 | % | 0.01 | % | ||||||||||||||||||
Lapses: | ||||||||||||||||||||||||||
Expected | 3.18 | % | 2.24 | % | 2.70 | % | 2.27 | % | ||||||||||||||||||
Actual | 1.67 | % | 0.34 | % | 0.96 | % | 0.33 | % |
At or for the Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | |||||||||||||||||||||||
Interest accretion rate | 5.26 | % | 4.86 | % | 5.26 | % | 4.85 | % | ||||||||||||||||||
Current discount rate | 5.07 | % | 5.06 | % | 3.68 | % | 3.61 | % |
9. Capital Stock and Earnings Per Share (OMH Only) |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Balance at beginning of period | 121,042,125 | 127,809,640 | ||||||||||||
Common stock issued | 207,403 | 252,277 | ||||||||||||
Common stock repurchased | (683,384) | (2,282,552) | ||||||||||||
Treasury stock issued | 21,070 | 14,471 | ||||||||||||
Balance at end of period | 120,587,214 | 125,793,836 |
Three Months Ended March 31, | ||||||||||||||
(dollars in millions, except per share data) | 2023 | 2022 | ||||||||||||
Numerator (basic and diluted): | ||||||||||||||
Net income | $ | 179 | $ | 303 | ||||||||||
Denominator: | ||||||||||||||
Weighted average number of shares outstanding (basic) | 120,765,661 | 127,075,714 | ||||||||||||
Effect of dilutive securities * | 204,230 | 387,313 | ||||||||||||
Weighted average number of shares outstanding (diluted) | 120,969,891 | 127,463,027 | ||||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | 1.48 | $ | 2.38 | ||||||||||
Diluted | $ | 1.48 | $ | 2.38 |
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 March 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | (131) | $ | (8) | $ | (5) | $ | (8) | $ | 25 | $ | (127) | ||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 19 | — | — | 3 | (3) | 19 | ||||||||||||||||||||||||||||||||
Balance at end of period | $ | (112) | $ | (8) | $ | (5) | $ | (5) | $ | 22 | $ | (108) | ||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 49 | $ | 1 | $ | 3 | $ | (56) | $ | 8 | $ | 5 | ||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (81) | — | 1 | 25 | 10 | (45) | ||||||||||||||||||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | (2) | — | — | — | — | (2) | ||||||||||||||||||||||||||||||||
Balance at end of period | $ | (34) | $ | 1 | $ | 4 | $ | (31) | $ | 18 | $ | (42) | ||||||||||||||||||||||||||
11. Income Taxes |
12. Contingencies |
13. Segment Information |
(dollars in millions) | Consumer and Insurance | Other | Segment to GAAP Adjustment | Consolidated Total | ||||||||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||
Interest income | $ | 1,092 | $ | 1 | $ | 1 | $ | 1,094 | ||||||||||||||||||
Interest expense | 238 | — | 1 | 239 | ||||||||||||||||||||||
Provision for finance receivable losses | 385 | — | — | 385 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 469 | 1 | — | 470 | ||||||||||||||||||||||
Other revenues | 176 | 1 | — | 177 | ||||||||||||||||||||||
Other expenses | 409 | 3 | — | 412 | ||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | 236 | $ | (1) | $ | — | $ | 235 | ||||||||||||||||||
Assets | $ | 21,199 | $ | 30 | $ | 1,214 | $ | 22,443 | ||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||
Interest income | $ | 1,087 | $ | 1 | $ | 1 | $ | 1,089 | ||||||||||||||||||
Interest expense | 217 | 1 | 1 | 219 | ||||||||||||||||||||||
Provision for finance receivable losses | 237 | — | 1 | 238 | ||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 633 | — | (1) | 632 | ||||||||||||||||||||||
Other revenues | 158 | 4 | — | 162 | ||||||||||||||||||||||
Other expenses | 392 | 4 | (1) | 395 | ||||||||||||||||||||||
Income before income tax expense | $ | 399 | $ | — | $ | — | $ | 399 | ||||||||||||||||||
Assets | $ | 19,756 | $ | 40 | $ | 2,020 | $ | 21,816 | ||||||||||||||||||
14. Fair Value Measurements |
Fair Value Measurements Using | Total Fair Value | Total Carrying Value | ||||||||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 538 | $ | 6 | $ | — | $ | 544 | $ | 544 | ||||||||||||||||||||||
Investment securities | 52 | 1,729 | 5 | 1,786 | 1,786 | |||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 19,150 | 19,150 | 17,511 | |||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | 531 | — | — | 531 | 531 | |||||||||||||||||||||||||||
Other assets * | — | — | 41 | 41 | 31 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 17,057 | $ | — | $ | 17,057 | $ | 18,206 | ||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 481 | $ | 17 | $ | — | $ | 498 | $ | 498 | ||||||||||||||||||||||
Investment securities | 51 | 1,744 | 5 | 1,800 | 1,800 | |||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 19,272 | 19,272 | 17,675 | |||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | 450 | 11 | — | 461 | 461 | |||||||||||||||||||||||||||
Other assets * | — | — | 43 | 43 | 35 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 16,969 | $ | — | $ | 16,969 | $ | 18,281 |
Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 109 | $ | — | $ | — | $ | 109 | ||||||||||||||||||
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 | — | 67 | — | 67 | ||||||||||||||||||||||
Commercial paper | — | 55 | — | 55 | ||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 144 | — | 144 | ||||||||||||||||||||||
Corporate debt | 5 | 1,115 | 3 | 1,123 | ||||||||||||||||||||||
RMBS | — | 190 | — | 190 | ||||||||||||||||||||||
CMBS | — | 35 | — | 35 | ||||||||||||||||||||||
CDO/ABS | — | 86 | — | 86 | ||||||||||||||||||||||
Total available-for-sale securities | 5 | 1,708 | 3 | 1,716 | ||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
Corporate debt | — | 5 | — | 5 | ||||||||||||||||||||||
CDO/ABS | — | 16 | — | 16 | ||||||||||||||||||||||
Total bonds | — | 21 | — | 21 | ||||||||||||||||||||||
Preferred stock | 16 | — | — | 16 | ||||||||||||||||||||||
Common stock | 31 | — | 2 | 33 | ||||||||||||||||||||||
Total other securities | 47 | 21 | 2 | 70 | ||||||||||||||||||||||
Total investment securities | 52 | 1,729 | 5 | 1,786 | ||||||||||||||||||||||
Restricted cash equivalents in mutual funds | 517 | — | — | 517 | ||||||||||||||||||||||
Total | $ | 678 | $ | 1,735 | $ | 5 | $ | 2,418 |
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 | $ | 77 | $ | — | $ | — | $ | 77 | ||||||||||||||||||
Cash equivalents in securities | — | 17 | — | 17 | ||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 16 | — | 16 | ||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 66 | — | 66 | ||||||||||||||||||||||
Commercial paper | — | 55 | — | 55 | ||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 142 | — | 142 | ||||||||||||||||||||||
Corporate debt | 5 | 1,129 | 3 | 1,137 | ||||||||||||||||||||||
RMBS | — | 192 | — | 192 | ||||||||||||||||||||||
CMBS | — | 35 | — | 35 | ||||||||||||||||||||||
CDO/ABS | — | 86 | — | 86 | ||||||||||||||||||||||
Total available-for-sale securities | 5 | 1,721 | 3 | 1,729 | ||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
Corporate debt | — | 6 | — | 6 | ||||||||||||||||||||||
RMBS | — | 1 | — | 1 | ||||||||||||||||||||||
CDO/ABS | — | 16 | — | 16 | ||||||||||||||||||||||
Total bonds | — | 23 | — | 23 | ||||||||||||||||||||||
Preferred stock | 15 | — | — | 15 | ||||||||||||||||||||||
Common stock | 31 | — | 2 | 33 | ||||||||||||||||||||||
Total other securities | 46 | 23 | 2 | 71 | ||||||||||||||||||||||
Total investment securities | 51 | 1,744 | 5 | 1,800 | ||||||||||||||||||||||
Restricted cash equivalents in mutual funds | 445 | — | — | 445 | ||||||||||||||||||||||
Restricted cash equivalents in securities | $ | — | $ | 11 | $ | — | 11 | |||||||||||||||||||
Total | $ | 573 | $ | 1,772 | $ | 5 | $ | 2,350 |
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 March 31, | ||||||||||||||
(dollars in millions, except per share amounts) | 2023 | 2022 | ||||||||||||
Interest income | $ | 1,094 | $ | 1,089 | ||||||||||
Interest expense | 239 | 219 | ||||||||||||
Provision for finance receivable losses | 385 | 238 | ||||||||||||
Net interest income after provision for finance receivable losses | 470 | 632 | ||||||||||||
Other revenues | 177 | 162 | ||||||||||||
Other expenses | 412 | 395 | ||||||||||||
Income before income taxes | 235 | 399 | ||||||||||||
Income taxes | 56 | 96 | ||||||||||||
Net income | $ | 179 | $ | 303 | ||||||||||
Share Data: | ||||||||||||||
Earnings per share: | ||||||||||||||
Diluted | $ | 1.48 | $ | 2.38 | ||||||||||
Selected Financial Statistics * | ||||||||||||||
Total finance receivables: | ||||||||||||||
Net finance receivables | $ | 19,809 | $ | 18,979 | ||||||||||
Average net receivables | $ | 19,881 | $ | 19,083 | ||||||||||
Gross charge-off ratio | 9.21 | % | 6.98 | % | ||||||||||
Recovery ratio | (1.41) | % | (1.42) | % | ||||||||||
Net charge-off ratio | 7.80 | % | 5.57 | % | ||||||||||
Personal loans: | ||||||||||||||
Net finance receivables | $ | 19,687 | $ | 18,929 | ||||||||||
Yield | 22.27 | % | 23.12 | % | ||||||||||
Origination volume | $ | 2,817 | $ | 2,959 | ||||||||||
Number of accounts | 2,303,278 | 2,288,999 | ||||||||||||
Number of accounts originated | 270,672 | 286,391 | ||||||||||||
Net charge-off ratio | 7.72 | % | 5.58 | % | ||||||||||
30-89 Delinquency ratio | 2.58 | % | 2.25 | % | ||||||||||
Credit cards: | ||||||||||||||
Net finance receivables | $ | 122 | $ | 50 | ||||||||||
Purchase volume | $ | 53 | $ | 45 | ||||||||||
Number of open accounts | 160,508 | 73,958 | ||||||||||||
Debt balances: | ||||||||||||||
Long-term debt balance | $ | 18,206 | $ | 17,560 | ||||||||||
Average daily debt balance | $ | 18,355 | $ | 17,553 |
Three Months Ended March 31, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Consumer and Insurance | ||||||||||||||
Income before income taxes - Segment Accounting Basis | $ | 236 | $ | 399 | ||||||||||
Adjustments: | ||||||||||||||
Direct costs associated with COVID-19 | — | 1 | ||||||||||||
Cash-settled stock-based awards | — | 1 | ||||||||||||
Adjusted pretax income (non-GAAP) | 236 | 401 | ||||||||||||
Provision for finance receivable losses | 385 | 237 | ||||||||||||
Net charge-offs | (382) | (262) | ||||||||||||
Pretax capital generation (non-GAAP) | $ | 239 | $ | 376 | ||||||||||
Segment Results |
At or for the Three Months Ended March 31, | ||||||||||||||
(dollars in millions) | 2023 | 2022 | ||||||||||||
Interest income | $ | 1,092 | $ | 1,087 | ||||||||||
Interest expense | 238 | 217 | ||||||||||||
Provision for finance receivable losses | 385 | 237 | ||||||||||||
Net interest income after provision for finance receivable losses | 469 | 633 | ||||||||||||
Other revenues | 176 | 158 | ||||||||||||
Other expenses | 409 | 390 | ||||||||||||
Adjusted pretax income (non-GAAP) | $ | 236 | $ | 401 | ||||||||||
Selected Financial Statistics * | ||||||||||||||
Total finance receivables: | ||||||||||||||
Net finance receivables | $ | 19,810 | $ | 18,981 | ||||||||||
Average net receivables | $ | 19,882 | $ | 19,086 | ||||||||||
Gross charge-off ratio | 9.21 | % | 6.98 | % | ||||||||||
Recovery ratio | (1.41) | % | (1.42) | % | ||||||||||
Net charge-off ratio | 7.80 | % | 5.57 | % | ||||||||||
Personal loans: | ||||||||||||||
Net finance receivables | $ | 19,688 | $ | 18,931 | ||||||||||
Yield | 22.26 | % | 23.11 | % | ||||||||||
Origination volume | $ | 2,817 | $ | 2,959 | ||||||||||
Number of accounts | 2,303,278 | 2,288,999 | ||||||||||||
Number of accounts originated | 270,672 | 286,391 | ||||||||||||
Net charge-off ratio | 7.72 | % | 5.58 | % | ||||||||||
30-89 Delinquency ratio | 2.58 | % | 2.25 | % | ||||||||||
Credit cards: | ||||||||||||||
Net finance receivables | $ | 122 | $ | 50 | ||||||||||
Purchase volume | $ | 53 | $ | 45 | ||||||||||
Number of open accounts | 160,508 | 73,958 | ||||||||||||
Credit Quality |
Consumer and Insurance | ||||||||||||||
(dollars in millions) | Personal Loans | Credit Cards | ||||||||||||
March 31, 2023 | ||||||||||||||
Current | $ | 18,646 | $ | 106 | ||||||||||
30-89 days past due | 508 | 7 | ||||||||||||
90+ days past due | 534 | 9 | ||||||||||||
Total net finance receivables | $ | 19,688 | $ | 122 | ||||||||||
Delinquency ratio | ||||||||||||||
30-89 days past due | 2.58 | % | 5.58 | % | ||||||||||
30+ days past due | 5.29 | % | 12.57 | % | ||||||||||
90+ days past due | 2.72 | % | 7.00 | % | ||||||||||
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 March 31, 2023 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,294 | $ | 21 | $ | (4) | $ | 2,311 | ||||||||||||||||||
Impact of adoption of ASU 2022-02 (a) | (20) | — | 4 | (16) | ||||||||||||||||||||||
Provision for finance receivable losses | 377 | 8 | — | 385 | ||||||||||||||||||||||
Charge-offs | (445) | (6) | — | (451) | ||||||||||||||||||||||
Recoveries | 69 | — | — | 69 | ||||||||||||||||||||||
Balance at end of period | $ | 2,275 | $ | 23 | $ | — | $ | 2,298 | ||||||||||||||||||
Allowance ratio | 11.55 | % | 19.25 | % | (b) | 11.60 | % | |||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,097 | $ | 5 | $ | (7) | $ | 2,095 | ||||||||||||||||||
Provision for finance receivable losses | 232 | 5 | 1 | 238 | ||||||||||||||||||||||
Charge-offs | (329) | — | — | (329) | ||||||||||||||||||||||
Recoveries | 67 | — | — | 67 | ||||||||||||||||||||||
Balance at end of period | $ | 2,067 | $ | 10 | $ | (6) | $ | 2,071 | ||||||||||||||||||
Allowance ratio | 10.92 | % | 19.99 | % | (b) | 10.91 | % | |||||||||||||||||||
Liquidity and Capital Resources |
As of March 31, 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 | ||||||||||||||||||||
Total | $ | 1.00 | $ | 121 |
(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 | 350 | 388 | 3.87 | % | 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 | 358 | 462 | 4.48 | % | 2 years | |||||||||||||||||||||||||||||||
OMFIT 2020-2 | 1,000 | 1,053 | 1,000 | 1,053 | 2.03 | % | 5 years | |||||||||||||||||||||||||||||||
OMFIT 2021-1 | 850 | 904 | 850 | 904 | 2.63 | % | 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 | |||||||||||||||||||||||||||||||
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 | 5.00 | % | 2 years | |||||||||||||||||||||||||||||||
ODART 2023-1 (c) | 750 | 792 | 750 | 792 | 5.63 | % | 3 years | |||||||||||||||||||||||||||||||
Total securitizations | $ | 10,394 | $ | 11,203 | $ | 9,654 | $ | 10,762 |
(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 | 100 | ||||||||||||
Hubbard River Funding, LLC | 250 | — | ||||||||||||
New River Funding Trust | 250 | — | ||||||||||||
St. Lawrence River Funding, LLC | 250 | — | ||||||||||||
Total | $ | 6,175 | $ | 100 |
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) | ||||||||||||||||||||||
January 1 - January 31 | 265,224 | $ | 37.70 | 265,224 | $ | 715,533,796 | ||||||||||||||||||||
February 1 - February 28 | 214,367 | 44.31 | 214,367 | 706,034,301 | ||||||||||||||||||||||
March 1 - March 31 | 203,793 | 39.26 | 203,793 | 698,033,606 | ||||||||||||||||||||||
Total | 683,384 | $ | 40.24 | 683,384 | ||||||||||||||||||||||
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: | April 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: | April 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) |
1 Year OneMain Chart |
1 Month OneMain Chart |
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