4Q 2023 Diluted EPS of $1.38 4Q 2023 C&I adjusted diluted EPS of $1.39 4Q 2023 Managed receivables of $22.2 billion Declared quarterly dividend of $1.00 per share Repurchased 531 thousand shares for $20 million in 4Q NEW YORK, Feb. 7, 2024 /PRNewswire/ -- OneMain Holdings, Inc. (NYSE: OMF), the leader in offering nonprime consumers responsible access to credit, today reported pretax income of $220 million and net income of $165 million for the fourth quarter of 2023, compared to $233 million and $176 mi ...

OneMain Holdings (OMF) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better ...

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.The ability to identify ...

Quite a few consumer lending stocks have continued to bounce back among the broader financial sector with names like LendingTree (TREE) , Ally Financial (ALLY) , Synchrony Financial (SYF) , and OneMain Holdings (OMF)  starting to simmer.Soaring near the $50-a-share range, OneMain’s stock has certainly stood out with LendingTree, Ally, and Synchrony shares still under $40 despite their recent rallies. With that being said, let’s see if now is a good time to buy OneMain’s stock for the possibility of higher h ...

Financial Data and Key Metrics Changes - The third quarter net income was $194 million or $1.61 per diluted share, up 8% from $1.49 per diluted share in the third quarter of 2022 [19] - Capital generation was $232 million for the quarter, down from $280 million a year ago, reflecting impacts from the current macro environment [19] - Managed receivables finished the third quarter just shy of $22 billion, up $1.5 billion or 7% year-over-year [19] Business Line Data and Key Metrics Changes - Receivables from distribution channels totaled more than $650 million, with plans to continue building the auto purchase lending program in a disciplined manner [8] - The front book accounted for 59% of the total portfolio at the end of the third quarter, up from 50% a quarter ago, and is expected to represent approximately 65% of the portfolio by year-end [12] - Other revenue was $182 million, up $17 million or 10% from the prior year quarter, primarily driven by excess cash balances and higher yields [11] Market Data and Key Metrics Changes - The 30 to 89 delinquency rate finished the quarter at 2.98%, up 22 basis points from the second quarter, in line with normal seasonal trends [44] - Loan net charge-offs for the quarter were 6.7%, down from 7.6% in the second quarter, and in line with expectations [15][51] - The company expects full-year receivables growth of around 7%, driven by strong demand and contributions from new products and channels [10] Company Strategy and Development Direction - The company is focused on executing business with appropriate credit tightening actions while building for the future with credit cards, secured distribution channels, and digital capabilities [25] - The BrightWay card is designed to reward customers for positive credit behavior, with a graduation program for customers who maintain on-time payments [46] - The company continues to invest in technology and data science to drive growth in new products and channels [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive positioning and ability to serve more customers with more products over time [25] - The company is navigating a challenging macroeconomic environment but remains focused on generating higher-quality loan business [10] - Management noted that the front book is performing in line with pre-pandemic benchmarks, while the back book continues to drive delinquency [58] Other Important Information - The company issued the largest ABS transaction in its history, raising nearly $3.5 billion in funding so far in 2023 [6] - The operating expense ratio was 6.8% in the third quarter, with expectations for the full year to be approximately 7.0% [22] - The company has a strong liquidity position supported by $7.4 billion of undrawn and committed bank facilities [23] Q&A Session Summary Question: What is the outlook for origination growth? - Management noted that demand for loan products remains strong, with originations totaling $3.3 billion, ahead of expectations despite credit tightening [14] Question: What are the expectations for net charge-offs? - Management expects full-year 2023 net charge-offs to be approximately 7.4%, with delinquency levels tracking in line with normal seasonal patterns [51] Question: How is the company managing its credit risk? - The company has implemented tighter underwriting standards since August 2022, focusing on high-quality loans and maintaining a cautious approach to credit [62] Question: What is the competitive environment like? - Management indicated that the competitive environment remains constructive, with the company able to book lower-risk customers at higher prices [87] Question: How is the company addressing the back book's performance? - Management acknowledged that the back book has higher delinquency due to seasoning, but expects improvements as the front book grows [81]

Financial Performance - Net income for the three months ended September 30, 2023, was $194 million, compared to $185 million for the same period in 2022, while net income for the nine months was $476 million, down from $696 million[175]. - Adjusted pretax income (non-GAAP) for the three months ended September 30, 2023, was $252 million, compared to $246 million for the same period in 2022, and $651 million for the nine months, down from $956 million[182]. - Interest income increased by $49 million or 4% for the three months ended September 30, 2023, and by $64 million or 2% for the nine months ended September 30, 2023, compared to the same periods in 2022[167]. - Other revenues increased by $15 million or 9% for the three months and by $88 million or 19% for the nine months ended September 30, 2023, primarily due to higher investment revenue[170]. - Net cash provided by operations was $1.8 billion for the nine months ended September 30, 2023, compared to $1.7 billion for the same period in 2022[219]. Balance Sheet and Receivables - As of September 30, 2023, the company managed a total of 2.84 million customer accounts and $21.9 billion of managed receivables, an increase from 2.56 million accounts and $20.8 billion in receivables at December 31, 2022[149]. - Net finance receivables increased to $21,068 million for the nine months ended September 30, 2023, compared to $19,754 million for the same period in 2022[182]. - The company reported approximately 2.40 million personal loans totaling $20.8 billion of net finance receivables, with 50% secured by titled property[151]. - The number of open credit card accounts increased to approximately 339 thousand, totaling $232 million of net finance receivables, compared to 135 thousand accounts and $107 million at December 31, 2022[151]. - The allowance for finance receivable losses as a percentage of net finance receivables increased to 11.51% for personal loans and 21.69% for credit cards as of September 30, 2023[197]. Debt and Liquidity - The company issued $500 million of 9.00% Senior Notes due 2029 on June 22, 2023, to enhance liquidity[152]. - The stock repurchase program authorized up to $1.0 billion, with $681 million remaining as of September 30, 2023[154]. - At September 30, 2023, the borrowing capacity of the corporate revolver was $1.25 billion, with no amounts drawn[207]. - OMH had access to 15 revolving conduit facilities with a total borrowing capacity of $6.2 billion as of September 30, 2023[230]. - OMH's credit ratings are non-investment grade, impacting its cost and access to capital[223]. Expenses and Provisions - Interest expense rose by $44 million or 20% for the three months and by $88 million or 13% for the nine months ended September 30, 2023, primarily due to a higher average cost of funds[168]. - Provision for finance receivable losses decreased by $11 million or 2% for the three months but increased by $277 million or 28% for the nine months ended September 30, 2023, compared to the same periods in 2022[169]. - Other expenses increased by $31 million or 8% for the three months and by $91 million or 8% for the nine months ended September 30, 2023, driven by growth in receivables and strategic investments[171][172]. Regulatory and Compliance - The company agreed to pay a $4.25 million civil penalty related to cybersecurity improvements and $20 million in penalties and refunds to resolve investigations by NYDFS and CFPB[157][158]. - As of September 30, 2023, OMH's disclosure controls and procedures were evaluated as effective by the CEO and CFO[240]. - No changes in OMH's internal control over financial reporting occurred during Q3 2023 that materially affected its effectiveness[241]. - OMFC's disclosure controls and procedures were also evaluated as effective as of September 30, 2023, according to the CEO and CFO[243]. - OMFC experienced no changes in internal control over financial reporting during Q3 2023 that materially affected its effectiveness[244]. Shareholder Returns - OMH declared a total dividend of $3.00 per share for the current year, amounting to $362 million paid to shareholders[215]. - OMH repurchased 1,120,903 shares of its common stock for a total of $45 million during the nine months ended September 30, 2023[213]. - The company intends to maintain its minimum quarterly dividend of $1.00 per share for the foreseeable future, subject to Board discretion[217].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-36129 (OneMain Holdings, Inc.) 001-06155 (OneMain Finance Corporation) ONEMAIN HOLDINGS, INC. ONEMAIN FINANCE CORPORATION (Exact ...

OneMain Holdings, Inc. (NYSE:OMF) Q2 2023 Earnings Conference Call July 26, 2023 9:00 AM ET Company Participants Peter Poillon - Head, Investor Relations Doug Shulman - Chairman & Chief Executive Officer Micah Conrad - Chief Financial Officer Conference Call Participants Vincent Caintic - Stephens Michael Kaye - Wells Fargo Mihir Bhatia - Bank of America Kevin Barker - Piper Sandler Rick Shane - JPMorgan Matthew Hurwit - Jefferies Operator Welcome to the OneMain Financial's Second Quarter 2023 Earnings Conf ...

[GLOSSARY](index=4&type=section&id=GLOSSARY) This section defines key terms and abbreviations used throughout the financial report [PART I — FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements of OneMain Holdings, Inc. and Subsidiaries (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20of%20OneMain%20Holdings%2C%20Inc.%20and%20Subsidiaries%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for OMH and OMFC, along with detailed notes on accounting policies and financial line items [Condensed Consolidated Balance Sheets (OMH)](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(OMH)) OMH's total assets slightly decreased to $22,443 million, driven by a minor decrease in net finance receivables and an increase in shareholders' equity Components of Condensed Consolidated Balance Sheets (OMH) | Metric | March 31, 2023 (millions) | December 31, 2022 (millions) | Change (millions) | | :----------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Total assets | $22,443 | $22,537 | $(94) | | Net finance receivables | $19,809 | $19,986 | $(177) | | Cash and cash equivalents | $544 | $498 | $46 | | Total liabilities | $19,362 | $19,522 | $(160) | | Long-term debt | $18,206 | $18,281 | $(75) | | Total shareholders' equity | $3,081 | $3,015 | $66 | [Condensed Consolidated Statements of Operations (OMH)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(OMH)) OMH's net income decreased to $179 million, primarily due to a significant increase in the provision for finance receivable losses, despite stable interest income Condensed Consolidated Statements of Operations (OMH) | Metric | Three Months Ended March 31, 2023 (millions) | Three Months Ended March 31, 2022 (millions) | Change (millions) | Change (%) | | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | :--------- | | Interest income | $1,094 | $1,089 | $5 | 0.46% | | Interest expense | $239 | $219 | $20 | 9.13% | | Net interest income | $855 | $870 | $(15) | -1.72% | | Provision for finance receivable losses | $385 | $238 | $147 | 61.76% | | Net interest income after provision for losses | $470 | $632 | $(162) | -25.63% | | Total other revenues | $177 | $162 | $15 | 9.26% | | Total other expenses | $412 | $395 | $17 | 4.30% | | Income before income taxes | $235 | $399 | $(164) | -41.10% | | Income taxes | $56 | $96 | $(40) | -41.67% | | Net income | $179 | $303 | $(124) | -40.92% | | Diluted Earnings per share | $1.48 | $2.38 | $(0.90) | -37.82% | [Condensed Consolidated Statements of Comprehensive Income (OMH)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(OMH)) OMH's comprehensive income decreased to $198 million, influenced by lower net income, partially offset by positive unrealized gains on available-for-sale securities Condensed Consolidated Statements of Comprehensive Income (OMH) | Metric | Three Months Ended March 31, 2023 (millions) | Three Months Ended March 31, 2022 (millions) | Change (millions) | | :--------------------------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | | Net income | $179 | $303 | $(124) | | Net change in unrealized gains (losses) on non-credit impaired AFS securities | $24 | $(105) | $129 | | Other comprehensive income (loss), net of tax | $19 | $(47) | $66 | | Comprehensive income | $198 | $256 | $(58) | [Condensed Consolidated Statements of Shareholders' Equity (OMH)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20(OMH)) OMH's total shareholders' equity increased to $3,081 million, driven by net income and other comprehensive income, partially offset by dividends and repurchases Condensed Consolidated Statements of Shareholders' Equity (OMH) | Metric | March 31, 2023 (millions) | January 1, 2023 (post-adoption) (millions) | Change (millions) | | :-------------------------------------- | :------------------------ | :--------------------------------------- | :---------------- | | Balance, January 1, 2023 (pre-adoption) | $3,015 | N/A | N/A | | Net impact of adoption of ASU 2022-02 | $12 | N/A | N/A | | Balance, January 1, 2023 (post-adoption)| N/A | $3,027 | N/A | | Net income | $179 | N/A | N/A | | Other comprehensive income | $19 | N/A | N/A | | Cash dividends | $(122) | N/A | N/A | | Common stock repurchased | $(27) | N/A | N/A | | Balance, March 31, 2023 | $3,081 | N/A | $66 | [Condensed Consolidated Statements of Cash Flows (OMH)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(OMH)) OMH's operating cash flow remained strong at $562 million, while investing activities shifted to a net use, and financing activities used less cash Condensed Consolidated Statements of Cash Flows (OMH) | Metric | Three Months Ended March 31, 2023 (millions) | Three Months Ended March 31, 2022 (millions) | Change (millions) | | :------------------------------------------------------------------ | :----------------------------------------- | :----------------------------------------- | :---------------- | | Net cash provided by operating activities | $562 | $552 | $10 | | Net cash provided by (used for) investing activities | $(204) | $50 | $(254) | | Net cash used for financing activities | $(242) | $(448) | $206 | | Net change in cash and cash equivalents and restricted cash equivalents | $116 | $154 | $(38) | | Cash and cash equivalents and restricted cash equivalents at end of period | $1,075 | $1,171 | $(96) | [Financial Statements of OneMain Finance Corporation and Subsidiaries (Unaudited)](index=11&type=section&id=Financial%20Statements%20of%20OneMain%20Finance%20Corporation%20and%20Subsidiaries%20(Unaudited)) This sub-section presents OMFC's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, equity, and cash flows [Condensed Consolidated Balance Sheets (OMFC)](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(OMFC)) OMFC's total assets slightly decreased to $22,432 million, mirroring OMH's trends with a minor decrease in net finance receivables Components of Condensed Consolidated Balance Sheets (OMFC) | Metric | March 31, 2023 (millions) | December 31, 2022 (millions) | Change (millions) | | :----------------------------------- | :-------------------------- | :--------------------------- | :---------------- | | Total assets | $22,432 | $22,527 | $(95) | | Net finance receivables | $19,809 | $19,986 | $(177) | | Cash and cash equivalents | $533 | $490 | $43 | | Total liabilities | $19,364 | $19,523 | $(159) | | Long-term debt | $18,206 | $18,281 | $(75) | | Total shareholder's equity | $3,068 | $3,004 | $64 | [Condensed Consolidated Statements of Operations (OMFC)](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(OMFC)) OMFC's net income decreased to $179 million, mirroring OMH's results, primarily due to a significant increase in provision for finance receivable losses Condensed Consolidated Statements of Operations (OMFC) | Metric | Three Months Ended March 31, 2023 (millions) | Three Months Ended March 31, 2022 (millions) | Change (millions) | Change (%) | | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | :--------- | | Interest income | $1,094 | $1,089 | $5 | 0.46% | | Interest expense | $239 | $219 | $20 | 9.13% | | Net interest income | $855 | $870 | $(15) | -1.72% | | Provision for finance receivable losses | $385 | $238 | $147 | 61.76% | | Net interest income after provision for losses | $470 | $632 | $(162) | -25.63% | | Total other revenues | $177 | $162 | $15 | 9.26% | | Total other expenses | $412 | $395 | $17 | 4.30% | | Income before income taxes | $235 | $399 | $(164) | -41.10% | | Income taxes | $56 | $96 | $(40) | -41.67% | | Net income | $179 | $303 | $(124) | -40.92% | [Condensed Consolidated Statements of Comprehensive Income (OMFC)](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(OMFC)) OMFC's comprehensive income decreased to $198 million, consistent with OMH, due to lower net income partially offset by positive unrealized gains Condensed Consolidated Statements of Comprehensive Income (OMFC) | Metric | Three Months Ended March 31, 2023 (millions) | Three Months Ended March 31, 2022 (millions) | Change (millions) | | :--------------------------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | | Net income | $179 | $303 | $(124) | | Net change in unrealized gains (losses) on non-credit impaired AFS securities | $24 | $(105) | $129 | | Other comprehensive income (loss), net of tax | $19 | $(47) | $66 | | Comprehensive income | $198 | $256 | $(58) | [Condensed Consolidated Statements of Shareholder's Equity (OMFC)](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholder's%20Equity%20(OMFC)) OMFC's total shareholder's equity increased to $3,068 million, driven by net income and other comprehensive income, partially offset by cash dividends Condensed Consolidated Statements of Shareholder's Equity (OMFC) | Metric | March 31, 2023 (millions) | January 1, 2023 (post-adoption) (millions) | Change (millions) | | :-------------------------------------- | :------------------------ | :--------------------------------------- | :---------------- | | Balance, January 1, 2023 (pre-adoption) | $3,004 | N/A | N/A | | Net impact of adoption of ASU 2022-02 | $12 | N/A | N/A | | Balance, January 1, 2023 (post-adoption)| N/A | $3,016 | N/A | | Net income | $179 | N/A | N/A | | Other comprehensive income | $19 | N/A | N/A | | Cash dividends | $(150) | N/A | N/A | | Balance, March 31, 2023 | $3,068 | N/A | $64 | [Condensed Consolidated Statements of Cash Flows (OMFC)](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(OMFC)) OMFC's operating cash flow remained strong at $562 million, while investing activities shifted to a net use, and financing activities used less cash Condensed Consolidated Statements of Cash Flows (OMFC) | Metric | Three Months Ended March 31, 2023 (millions) | Three Months Ended March 31, 2022 (millions) | Change (millions) | | :------------------------------------------------------------------ | :----------------------------------------- | :----------------------------------------- | :---------------- | | Net cash provided by operating activities | $562 | $553 | $9 | | Net cash provided by (used for) investing activities | $(204) | $50 | $(254) | | Net cash used for financing activities | $(245) | $(438) | $193 | | Net change in cash and cash equivalents and restricted cash equivalents | $113 | $165 | $(52) | | Cash and cash equivalents and restricted cash equivalents at end of period | $1,064 | $1,151 | $(87) | [Notes to the Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes on business, accounting policies, recent pronouncements, and specific financial statement line items, including ASU 2018-12 and ASU 2022-02 impacts [1. Business and Basis of Presentation](index=16&type=section&id=1.%20Business%20and%20Basis%20of%20Presentation) OMH and OMFC are financial services holding companies in consumer finance and insurance, with statements prepared under GAAP, consolidating subsidiaries and VIEs - OMH and OMFC are financial services holding companies operating in consumer finance and insurance businesses[36](index=36&type=chunk) - The financial statements are prepared using GAAP and consolidate OMH, its subsidiaries, and VIEs where OMH is the primary beneficiary[37](index=37&type=chunk) [2. Recent Accounting Pronouncements](index=17&type=section&id=2.%20Recent%20Accounting%20Pronouncements) The company adopted ASU 2018-12 and ASU 2022-02, impacting insurance contracts, credit losses, and eliminating TDR accounting, with retrospective adjustments - Adopted ASU 2018-12 (Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts) effective January 1, 2023, using the modified retrospective transition method, recasting prior periods[41](index=41&type=chunk)[42](index=42&type=chunk) Effects of ASU 2018-12 Adoption on Condensed Consolidated Balance Sheets (December 31, 2022) | (dollars in millions) | As Reported | Adjustment | As Recast | | :-------------------- | :---------- | :--------- | :-------- | | Other assets (OMH) | $1,150 | $4 | $1,154 | | Insurance claims and policyholder liabilities | $602 | $18 | $620 | | Accumulated other comprehensive loss | $(119) | $(8) | $(127) | | Retained earnings (OMH) | $2,125 | $(6) | $2,119 | - Adopted ASU 2022-02 (Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures) effective January 1, 2023, using the modified retrospective transition method[48](index=48&type=chunk)[49](index=49&type=chunk) - Upon adoption of ASU 2022-02, recorded a **$16 million decrease** to the allowance for finance receivable losses and a **$12 million cumulative increase** to retained earnings, net of tax[49](index=49&type=chunk) - ASU 2022-02 eliminated the accounting for troubled debt restructurings (TDRs) and introduced new policies for modified finance receivables to borrowers experiencing financial difficulty[51](index=51&type=chunk)[52](index=52&type=chunk) [3. Finance Receivables](index=21&type=section&id=3.%20Finance%20Receivables) Finance receivables, primarily personal loans, slightly decreased, with delinquency status as a key indicator, and modified receivables to distressed borrowers totaling $222 million Components of Net Finance Receivables | (dollars in millions) | March 31, 2023 | December 31, 2022 | | :-------------------- | :------------- | :---------------- | | Personal Loans | $19,687 | $19,879 | | Credit Cards | $122 | $107 | | Total | $19,809 | $19,986 | - Sold **$180 million** of gross finance receivables during the three months ended March 31, 2023 and 2022, generating a gain of **$17 million** in both periods[66](index=66&type=chunk) - Delinquency status is the key credit quality indicator; personal loans are nonperforming at 90+ days past due[67](index=67&type=chunk)[68](index=68&type=chunk) Modified Finance Receivables to Borrowers Experiencing Financial Difficulty (Q1 2023) | (dollars in millions) | Three Months Ended March 31, 2023 | | :------------------------------------------------ | :-------------------------------- | | Total modifications to borrowers experiencing financial difficulties | $222 | | Modifications as a percent of net finance receivables | 1.13 % | | Weighted-average interest rate reduction | 21.32 % | | Weighted-average term extension (months) | 19 | | Principal/interest forgiveness | $11 | - Unfunded lending commitments (unused credit card lines) totaled **$99 million** at March 31, 2023, up from **$81 million** at December 31, 2022[81](index=81&type=chunk) [4. Allowance for Finance Receivable Losses](index=25&type=section&id=4.%20Allowance%20for%20Finance%20Receivable%20Losses) Allowance for finance receivable losses decreased to $2,298 million due to ASU 2022-02 adoption, while provision for losses significantly increased year-over-year - The allowance for finance receivable losses is estimated using a cumulative loss model, historical loss experience, and macroeconomic forecasts (e.g., unemployment rates)[56](index=56&type=chunk)[84](index=84&type=chunk) Changes in Allowance for Finance Receivable Losses (Q1 2023 vs Q1 2022) | (dollars in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Balance at beginning of period | $2,311 | $2,095 | | Impact of adoption of ASU 2022-02 | $(16) | — | | Provision for finance receivable losses | $385 | $238 | | Charge-offs | $(451) | $(329) | | Recoveries | $69 | $67 | | Balance at end of period | $2,298 | $2,071 | - The allowance for finance receivable losses as a percentage of net finance receivables for personal loans increased from **10.92% in Q1 2022 to 11.55% in Q1 2023**, primarily due to an increase in delinquent personal loans and a weaker macroeconomic outlook[196](index=196&type=chunk) [5. Investment Securities](index=26&type=section&id=5.%20Investment%20Securities) Investment securities totaled $1,786 million, with unrealized losses decreasing to $146 million due to interest rate changes, and no material credit impairments Available-for-Sale Securities (Fair Value and Unrealized Losses) | (dollars in millions) | March 31, 2023 Fair Value | March 31, 2023 Unrealized Losses | December 31, 2022 Fair Value | December 31, 2022 Unrealized Losses | | :-------------------- | :------------------------ | :------------------------------- | :--------------------------- | :-------------------------------- | | Total AFS Securities | $1,716 | $(146) | $1,729 | $(169) | - Unrealized losses are not considered credit-related, primarily due to changes in interest rates and market spreads. The company does not plan to sell these securities before recovery of their amortized cost[90](index=90&type=chunk) Contractual Maturities of Fixed-Maturity Available-for-Sale Securities (March 31, 2023) | (dollars in millions) | Fair Value | Amortized Cost | | :-------------------- | :--------- | :------------- | | 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 | Other Securities Fair Value | (dollars in millions) | March 31, 2023 | December 31, 2022 | | :-------------------- | :------------- | :---------------- | | Bonds | $21 | $23 | | Preferred stock | $16 | $15 | | Common stock | $33 | $33 | | Total | $70 | $71 | [6. Long-term Debt](index=29&type=section&id=6.%20Long-term%20Debt) Total long-term debt was $18,206 million, with maturities spread across debt types, and a $1.25 billion unsecured corporate revolver undrawn Principal Maturities of Long-term Debt by Type (March 31, 2023) | (dollars in millions) | Securitizations | Private Secured Term Funding | Revolving Conduit Facilities | Unsecured Notes | Junior Subordinated Debt | Total | | :-------------------- | :-------------- | :--------------------------- | :--------------------------- | :-------------- | :----------------------- | :---- | | Total principal maturities | $9,654 | $350 | $100 | $8,027 | $350 | $18,481 | | Total carrying amount | $9,611 | $349 | $100 | $7,974 | $172 | $18,206 | - The unsecured corporate revolver has a maximum borrowing capacity of **$1.25 billion**, with no amounts drawn at March 31, 2023[101](index=101&type=chunk) [7. Variable Interest Entities](index=30&type=section&id=7.%20Variable%20Interest%20Entities) The company consolidates VIEs for asset-backed financing, with $12,858 million in assets and $10,080 million in liabilities, and completed one securitization Carrying Amounts of Consolidated VIE Assets and Liabilities | (dollars in millions) | March 31, 2023 | December 31, 2022 | | :-------------------- | :------------- | :---------------- | | Net finance receivables | $11,108 | $10,432 | | Long-term debt | $10,060 | $9,361 | - Consolidated interest expense related to VIEs totaled **$101 million** for Q1 2023, up from **$65 million** in Q1 2022[105](index=105&type=chunk) - Completed one personal loan securitization (ODART 2023-1) during Q1 2023, issuing **$750 million** of notes backed by direct auto loans[203](index=203&type=chunk)[226](index=226&type=chunk) - At March 31, 2023, **$100 million** was drawn under revolving conduit facilities, with a remaining borrowing capacity of **$6.1 billion**[109](index=109&type=chunk) - Private secured term funding had **$350 million** outstanding at March 31, 2023, with no principal payments required until after April 25, 2025[107](index=107&type=chunk) [8. Insurance](index=31&type=section&id=8.%20Insurance) Insurance operations include short-duration contract reserves of $92 million and long-duration liabilities of $373 million, with ASU 2018-12 impacting presentation Changes in Reserve for Unpaid Claims (Short-Duration Contracts) | (dollars in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net balance at beginning of period | $90 | $99 | | Additions for losses and loss adjustment expenses incurred | $41 | $40 | | Reductions for losses and loss adjustment expenses paid | $(39) | $(40) | | Net balance at end of period | $92 | $99 | Net Liability for Future Policy Benefits (Long-Duration Contracts) | (dollars in millions) | March 31, 2023 | March 31, 2022 | | :-------------------- | :------------- | :------------- | | Term and Whole Life | $227 | $258 | | Accidental Death and Disability Protection | $77 | $86 | | Deferred profit liability | $70 | $77 | | Total net liability for future policy benefits | $373 | $421 | - The weighted-average duration of the liability for future policy benefits was **8 years** at both March 31, 2023 and 2022[114](index=114&type=chunk) Expected vs. Actual Mortality/Morbidity and Lapses | Metric | Q1 2023 Expected | Q1 2023 Actual | Q1 2022 Expected | Q1 2022 Actual | | :-------------------- | :--------------- | :------------- | :--------------- | :------------- | | Mortality/Morbidity | 0.39% | 0.31% | 0.40% | 0.43% | | Lapses | 3.18% | 1.67% | 2.70% | 0.96% | [9. Capital Stock and Earnings Per Share (OMH Only)](index=35&type=section&id=9.%20Capital%20Stock%20and%20Earnings%20Per%20Share%20(OMH%20Only)) OMH's common stock outstanding decreased to 120,587,214 shares due to repurchases, with diluted earnings per share at $1.48 for Q1 2023, down from $2.38 Changes in OMH Common Stock Issued and Outstanding | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 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 | Earnings Per Share (OMH Only) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net income (millions) | $179 | $303 | | Basic EPS | $1.48 | $2.38 | | Diluted EPS | $1.48 | $2.38 | [10. Accumulated Other Comprehensive Income (Loss)](index=36&type=section&id=10.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Accumulated Other Comprehensive Income (Loss) improved to $(108) million, driven by positive changes in unrealized gains on available-for-sale securities Changes in Accumulated Other Comprehensive Income (Loss) | (dollars in millions) | Balance at beginning of period | Other comprehensive income (loss) before reclassifications | Balance at end of period | | :-------------------- | :----------------------------- | :------------------------------------------------------- | :----------------------- | | March 31, 2023 | $(127) | $19 | $(108) | | March 31, 2022 | $5 | $(45) | $(42) | [11. Income Taxes](index=37&type=section&id=11.%20Income%20Taxes) Net deferred tax asset decreased to $438 million, with an effective tax rate of 24.0% for Q1 2023, consistent with the prior year Income Tax Metrics | Metric | March 31, 2023 (millions) | December 31, 2022 (millions) | | :-------------------------- | :------------------------ | :--------------------------- | | Net deferred tax asset | $438 | $456 | | Gross unrecognized tax benefits | $6 | $6 | Effective Tax Rate | Period | Effective Tax Rate | | :-------------------------- | :----------------- | | Three Months Ended March 31, 2023 | 24.0% | | Three Months Ended March 31, 2022 | 24.1% | [12. Contingencies](index=38&type=section&id=12.%20Contingencies) The company faces various legal actions and governmental inquiries, including a CFPB inquiry regarding refunding practices for optional insurance products - The company is subject to inquiries and investigations by federal, state, and local governmental authorities, which may result in fines, restitution, or other penalties[132](index=132&type=chunk) - The CFPB is considering legal action against the company regarding alleged violations related to refunding practices for optional insurance and membership plan products[136](index=136&type=chunk) - The company does not currently believe the outcome of the CFPB matter will have a material adverse effect on its business, financial condition, or results of operations[136](index=136&type=chunk) [13. Segment Information](index=39&type=section&id=13.%20Segment%20Information) The Consumer and Insurance (C&I) segment is the sole reportable segment, with income before tax decreasing due to higher provision for finance receivable losses - Consumer and Insurance (C&I) is the company's only reportable segment[138](index=138&type=chunk) Segment Financial Performance (Q1 2023 vs Q1 2022) | (dollars in millions) | Consumer and Insurance (2023) | Consumer and Insurance (2022) | Other (2023) | Other (2022) | | :-------------------- | :---------------------------- | :---------------------------- | :----------- | :----------- | | Interest income | $1,092 | $1,087 | $1 | $1 | | Interest expense | $238 | $217 | — | $1 | | Provision for finance receivable losses | $385 | $237 | — | — | | Income (loss) before income tax expense (benefit) | $236 | $399 | $(1) | — | | Assets | $21,199 | $19,756 | $30 | $40 | [14. Fair Value Measurements](index=40&type=section&id=14.%20Fair%20Value%20Measurements) The company measures financial instruments using a three-level hierarchy, with total fair value of assets at $2,418 million and long-term debt predominantly Level 2 Fair Value Measurements of Financial Instruments (March 31, 2023) | (dollars in millions) | Level 1 | Level 2 | Level 3 | Total Fair Value | Total Carrying Value | | :-------------------- | :------ | :------ | :------ | :--------------- | :------------------- | | **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 | Recurring Fair Value Measurements for Assets (March 31, 2023) | (dollars in millions) | Level 1 | Level 2 | Level 3 | Total Carried At Fair Value | | :-------------------- | :------ | :------ | :------ | :-------------------------- | | Cash equivalents in mutual funds | $109 | — | — | $109 | | Investment securities | $52 | $1,729 | $5 | $1,786 | | Restricted cash equivalents in mutual funds | $517 | — | — | $517 | | Total | $678 | $1,735 | $5 | $2,418 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for Q1 2023, covering performance, credit quality, and liquidity [Forward-Looking Statements](index=44&type=section&id=Forward-Looking%20Statements) This section cautions that actual results may differ materially from forward-looking statements due to various risks, including economic conditions and regulatory changes - Forward-looking statements are subject to risks, uncertainties, assumptions, and other important factors that may cause actual results to differ materially[150](index=150&type=chunk) - Key risk factors include adverse changes in economic conditions, sufficiency of allowance for finance receivable losses, increased unemployment, inflation, cyber-attacks, regulatory changes, and substantial indebtedness[152](index=152&type=chunk) [Overview](index=45&type=section&id=Overview) OneMain operates in the US, offering personal loans, credit cards, and insurance, managing 2.56 million customer accounts and $20.6 billion in receivables - OneMain offers personal loans, BrightWay and BrightWay+ credit cards, and optional credit and non-credit insurance products[153](index=153&type=chunk)[156](index=156&type=chunk) Managed Accounts and Receivables | Metric | March 31, 2023 | December 31, 2022 | | :---------------------- | :------------- | :---------------- | | Total customer accounts | 2.56 million | 2.56 million | | Managed receivables | $20.6 billion | $20.8 billion | - Personal loans totaled **$19.7 billion** of net finance receivables at March 31, 2023, with **52% secured** by titled property[156](index=156&type=chunk) - Credit cards had approximately **161 thousand** open accounts totaling **$122 million** of net finance receivables at March 31, 2023[156](index=156&type=chunk) [Recent Developments and Outlook](index=46&type=section&id=Recent%20Developments%20and%20Outlook) Recent developments include an ongoing stock repurchase program and a personal loan securitization, with the company actively monitoring macroeconomic conditions - As of March 31, 2023, the company had **$698 million** of authorized share repurchase capacity remaining under its **$1.0 billion** stock repurchase program, which expires on December 31, 2024[157](index=157&type=chunk) - OMH declared a cash dividend of **$1.00 per share** payable on February 24, 2023, totaling **$121 million**[211](index=211&type=chunk) - The company is actively monitoring macroeconomic conditions (unemployment, inflation, interest rates, consumer confidence) and is prepared for potential impacts on its business[161](index=161&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) OMH's consolidated net income decreased by 40.9% to $179 million, primarily due to a 61.8% increase in the provision for finance receivable losses OMH's Consolidated Operating Results (Q1 2023 vs Q1 2022) | Metric | Three Months Ended March 31, 2023 (millions) | Three Months Ended March 31, 2022 (millions) | Change (millions) | Change (%) | | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | :--------- | | Interest income | $1,094 | $1,089 | $5 | 0.46% | | Interest expense | $239 | $219 | $20 | 9.13% | | Provision for finance receivable losses | $385 | $238 | $147 | 61.76% | | Net income | $179 | $303 | $(124) | -40.92% | | Diluted Earnings per share | $1.48 | $2.38 | $(0.90) | -37.82% | | Gross charge-off ratio | 9.21 % | 6.98 % | 2.23 pp | 31.95% | | Net charge-off ratio | 7.80 % | 5.57 % | 2.23 pp | 40.04% | - Interest income increased by **$5 million** (less than 1%) due to growth in average net receivables, partially offset by lower yield[167](index=167&type=chunk) - Interest expense increased by **$20 million** (9%) due to a higher average cost of funds and an increase in average debt[168](index=168&type=chunk) - Other revenues increased by **$15 million** (10%) primarily due to higher investment revenue[170](index=170&type=chunk) Non-GAAP Financial Measures (Q1 2023 vs Q1 2022) | (dollars in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Adjusted pretax income | $236 | $401 | | Pretax capital generation | $239 | $376 | [Segment Results](index=50&type=section&id=Segment%20Results) The C&I segment's adjusted pretax income decreased to $236 million, primarily driven by a 62% increase in the provision for finance receivable losses C&I Adjusted Pretax Income and Selected Financial Statistics (Q1 2023 vs Q1 2022) | Metric | Three Months Ended March 31, 2023 (millions) | Three Months Ended March 31, 2022 (millions) | Change (millions) | Change (%) | | :----------------------------------------- | :----------------------------------------- | :----------------------------------------- | :---------------- | :--------- | | Interest income | $1,092 | $1,087 | $5 | 0.46% | | Interest expense | $238 | $217 | $21 | 9.68% | | Provision for finance receivable losses | $385 | $237 | $148 | 62.45% | | Adjusted pretax income | $236 | $401 | $(165) | -41.15% | | Net finance receivables | $19,810 | $18,981 | $829 | 4.37% | | Average net receivables | $19,882 | $19,086 | $796 | 4.17% | | Personal loans origination volume | $2,817 | $2,959 | $(142) | -4.80% | | Personal loans 30-89 Delinquency ratio | 2.58 % | 2.25 % | 0.33 pp | 14.67% | - Other revenues for C&I increased by **$18 million** (11%) due to higher investment revenue[184](index=184&type=chunk) - Other expenses for C&I increased by **$19 million** (5%) due to higher salaries and benefits and general operating expenses[185](index=185&type=chunk) [Credit Quality](index=52&type=section&id=Credit%20Quality) Net finance receivables slightly decreased, with personal loan delinquency ratios increasing and the allowance for losses rising due to a weaker macroeconomic outlook Net Finance Receivables Delinquency (March 31, 2023 vs December 31, 2022) | (dollars in millions) | Personal Loans (Mar 31, 2023) | Credit Cards (Mar 31, 2023) | Personal Loans (Dec 31, 2022) | Credit Cards (Dec 31, 2022) | | :-------------------- | :---------------------------- | :-------------------------- | :---------------------------- | :-------------------------- | | Current | $18,646 | $106 | $18,726 | $93 | | 30-89 days past due | $508 | $7 | $610 | $6 | | 90+ days past due | $534 | $9 | $544 | $8 | | Total net finance receivables | $19,688 | $122 | $19,880 | $107 | Delinquency Ratios (March 31, 2023 vs December 31, 2022) | Metric | Personal Loans (Mar 31, 2023) | Credit Cards (Mar 31, 2023) | Personal Loans (Dec 31, 2022) | Credit Cards (Dec 31, 2022) | | :-------------------- | :---------------------------- | :-------------------------- | :---------------------------- | :-------------------------- | | 30-89 days past due | 2.58 % | 5.58 % | 3.07 % | 5.90 % | | 90+ days past due | 2.72 % | 7.00 % | 2.74 % | 7.18 % | Allowance Ratio for Finance Receivable Losses | Metric | March 31, 2023 | March 31, 2022 | | :-------------------- | :------------- | :------------- | | Personal Loans | 11.55 % | 10.92 % | | Credit Cards | 19.25 % | 19.99 % | | Consolidated Total | 11.60 % | 10.91 % | - The increase in the personal loan allowance ratio is primarily due to an increase in delinquent personal loans (30+ days past due) and a weaker macroeconomic outlook[196](index=196&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) The company finances operations through cash flows and debt, maintaining $8.5 billion in unencumbered loans and $6.1 billion in revolving conduit capacity - OMH generated net income of **$179 million** and net cash inflow from operating and investing activities of **$358 million** for Q1 2023[200](index=200&type=chunk) - At March 31, 2023, the company had **$8.5 billion** of unencumbered loans[200](index=200&type=chunk) OMFC's Long-Term Corporate Debt Ratings (March 31, 2023) | Rating Agency | Rating | Outlook | | :------------ | :----- | :------ | | S&P | BB | Stable | | Moody's | Ba2 | Stable | | KBRA | BB+ | Positive | - OMH repurchased **683,384 shares** of common stock for **$27 million** during Q1 2023[209](index=209&type=chunk) - At March 31, 2023, **$100 million** was drawn under revolving conduit facilities, with a remaining borrowing capacity of **$6.1 billion**[203](index=203&type=chunk) - The company sold **$180 million** of gross finance receivables through whole loan sale transactions during Q1 2023[214](index=214&type=chunk) - At March 31, 2023, cash and cash equivalents totaled **$544 million**, with **$177 million** held at regulated insurance subsidiaries or for other operating activities and unavailable for general corporate purposes[218](index=218&type=chunk) [Critical Accounting Policies and Estimates](index=59&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The allowance for finance receivable losses remains a critical accounting policy, while TDR accounting was removed due to ASU 2022-02 adoption - The allowance for finance receivable losses is considered a critical accounting policy due to critical accounting estimates and significant management judgment[231](index=231&type=chunk) - TDR finance receivables were removed as a critical accounting policy and estimate due to ASU 2022-02 superseding the accounting for troubled debt restructurings[232](index=232&type=chunk) [Recent Accounting Pronouncements](index=59&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 2 for detailed discussion of recently issued accounting pronouncements and their impact on financial reporting - Refer to Note 2 for discussion of recently issued accounting pronouncements[233](index=233&type=chunk) [Seasonality](index=59&type=section&id=Seasonality) Personal loan volume typically peaks in Q2 and Q4, while delinquencies are lower in Q1 and Q2, influencing operating results and cash needs - Personal loan volume is generally highest during the second and fourth quarters and lower in January and February[234](index=234&type=chunk) - Delinquencies on personal loans are generally lower in the first and second quarters and tend to rise throughout the remainder of the year[234](index=234&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk disclosures previously reported in its Annual Report on Form 10-K - No material changes to market risk disclosures previously disclosed in Part II - Item 7A of the Annual Report[235](index=235&type=chunk) [Item 4. Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures for OMH and OMFC, with no material changes in internal control [Controls and Procedures of OneMain Holdings, Inc.](index=60&type=section&id=Controls%20and%20Procedures%20of%20OneMain%20Holdings%2C%20Inc.) OMH's disclosure controls and procedures were effective as of March 31, 2023, with no material changes in internal control over financial reporting - OMH's disclosure controls and procedures were effective as of March 31, 2023[238](index=238&type=chunk) - No material changes in OMH's internal control over financial reporting occurred during the first quarter of 2023[239](index=239&type=chunk) [Controls and Procedures of OneMain Finance Corporation](index=60&type=section&id=Controls%20and%20Procedures%20of%20OneMain%20Finance%20Corporation) OMFC's disclosure controls and procedures were effective as of March 31, 2023, with no material changes in internal control over financial reporting - OMFC's disclosure controls and procedures were effective as of March 31, 2023[241](index=241&type=chunk) - No material changes in OMFC's internal control over financial reporting occurred during the first quarter of 2023[242](index=242&type=chunk) [PART II — OTHER INFORMATION](index=61&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, risk factors, equity sales, defaults, and other miscellaneous information [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 of the Condensed Consolidated Financial Statements for detailed information regarding legal proceedings and contingencies - Refer to Note 12 of the Notes to the Condensed Consolidated Financial Statements for information on legal proceedings[244](index=244&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the comprehensive discussion of risk factors in the company's Annual Report on Form 10-K - Refer to Part I - Item 1A. "Risk Factors" in the Annual Report for factors that could materially affect the business[245](index=245&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of common stock occurred, while the company repurchased 683,384 shares for $27 million, with $698 million remaining in the program - No unregistered sales of common stock occurred during the quarter ended March 31, 2023[246](index=246&type=chunk) Issuer Purchases of Equity Securities (Q1 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | | :---------------------- | :------------------------------- | :--------------------------- | :--------------------------------------------------------------------------- | | January 1 - January 31 | 265,224 | $37.70 | $715,533,796 | | February 1 - February 28 | 214,367 | $44.31 | $706,034,301 | | March 1 - March 31 | 203,793 | $39.26 | $698,033,606 | | Total | 683,384 | $40.24 | N/A | [Item 3. Defaults Upon Senior Securities](index=61&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - No defaults upon senior securities[248](index=248&type=chunk) [Item 4. Mine Safety Disclosures](index=61&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reported no mine safety disclosures during the period - No mine safety disclosures[249](index=249&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) The company reported no other information requiring disclosure in this section - No other information[250](index=250&type=chunk) [Item 6. Exhibit Index](index=62&type=section&id=Item%206.%20Exhibit%20Index) This section provides an index of exhibits filed as part of the Form 10-Q, including bylaws and certifications - The exhibit index includes Amended and Restated Bylaws, Rule 13a-14(a)/15d-14(a) Certifications, Section 1350 Certifications, and Interactive data files (Inline XBRL)[252](index=252&type=chunk) [SIGNATURES](index=63&type=section&id=SIGNATURES) This section contains the official signatures certifying the accuracy and completeness of the report [OneMain Holdings, Inc. Signature](index=63&type=section&id=OneMain%20Holdings%2C%20Inc.%20Signature) This section contains the signature of Micah R. Conrad, EVP and CFO, certifying the report on behalf of OneMain Holdings, Inc [OneMain Finance Corporation Signature](index=64&type=section&id=OneMain%20Finance%20Corporation%20Signature) This section contains the signature of Matthew W. Vaughan, VP and CFO, certifying the report on behalf of OneMain Finance Corporation

Financial Performance - The company reported $2.8 billion in originations with a conservative credit posture[9] - Managed receivables reached $20.6 billion, a 6% year-over-year increase[9] - Net interest margin was 17.4%, with a loan portfolio yield of 22.3%[9] - The company declared a dividend of $1.00 per share, resulting in an approximate 10% dividend yield[9] - Net income for the quarter was $179 million[9] Credit Quality - Loan net charge-offs were 7.7%[9] - 30-89 day loan delinquency rate was 2.58%[9] - Credit card receivables totaled $122 million, covering over 160,000 cards[9] Liquidity and Funding - The company has $7.3 billion in undrawn bank facilities and $8.5 billion in unencumbered loans[9] - A $750 million auto ABS issuance was completed with a 5.6% interest rate for a 3-year revolving facility[9] Operational Efficiency - The operating expense ratio was 7.1%, a decrease of 10 basis points year-over-year[9] - Net leverage was 5.4x, down 0.1x quarter-over-quarter[9] Portfolio and Originations - First quarter originations were $2.8 billion[9] - Post tightening originations now represent 38% of portfolio[61]