Core Insights - KBRA has assigned preliminary ratings to nine classes of notes issued by Pagaya Point of Sale Holdings Grantor Trust 2025-2 and Pagaya Point of Sale Holdings Trust 2025-2, collectively known as POSH 2025-2, which is a point-of-sale unsecured consumer loan ABS transaction [1][2] Summary by Category Transaction Structure - POSH 2025-2 will issue 10 classes of notes totaling $300 million, with ratings provided for Class A through Class F Notes, Class AB, Class ABC, and Class ABCD [2] - The transaction is fully prefunded, meaning no collateral will be funded at closing, and includes an 18-month revolving period [2] - Upon the end of the revolving period or an amortization event, the amortization period will commence, during which reinvestment is not allowed, and distributions will be made sequentially to noteholders [2] Credit Enhancement - Initial hard credit enhancement levels range from 34.98% for Class A Notes to 2.18% for Class F Notes, which includes overcollateralization, subordination (except for Class F), a cash reserve account, and excess spread [1] Company Background - Pagaya Structured Products LLC, the sponsor and administrator of the transaction, is a wholly owned subsidiary of Pagaya US Holding Company LLC, which is fully owned by Pagaya Technologies Ltd., an Israeli corporation listed on NASDAQ (PGY) [3] - Pagaya Technologies is a financial technology company specializing in the lending marketplace, utilizing AI-driven credit and analysis technology [3] Rating Methodology - KBRA applied its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology in analyzing the transaction's capital structure and Pagaya's historical data [4] - Operational reviews of Pagaya and each of the Platform Sellers were considered, along with periodic update calls and recent surveillance on each platform's KBRA-rated securitizations [4]

Core Insights - FinWise Bancorp reported strong financial results for the third quarter of 2025, with net income of $4.9 million, a 19% increase from the previous quarter and a 42% increase year-over-year, driven by robust loan originations and disciplined expense management [4][20]. Financial Performance - Loan originations totaled $1.8 billion, up from $1.5 billion in the prior quarter and $1.4 billion year-over-year [6][10]. - Net interest income was $18.6 million, compared to $14.7 million in the previous quarter and $14.8 million in the same quarter last year [9][6]. - Diluted earnings per share (EPS) were $0.34, an increase from $0.29 in the prior quarter and $0.25 year-over-year [6][20]. - The efficiency ratio improved to 47.6%, down from 59.5% in the previous quarter and 67.5% year-over-year, indicating better productivity [18][6]. Asset Quality - Nonperforming loans were recorded at $42.8 million, representing 7.5% of total loans held-for-investment, compared to $39.7 million (7.5%) in the previous quarter and $30.6 million (7.1%) year-over-year [30][31]. - The allowance for credit losses increased to $25.8 million, reflecting a higher provision for credit losses due to growth in the credit-enhanced loan portfolio [32][30]. Balance Sheet Highlights - Total assets reached $899.9 million, up from $842.5 million in the previous quarter and $683.0 million year-over-year [21][22]. - Total deposits increased to $682.3 million, driven by growth in brokered time certificates of deposits [26][25]. - Total shareholders' equity rose to $187.8 million, an increase of $5.8 million from the previous quarter and $17.4 million year-over-year [27][44]. Strategic Initiatives - The company announced two strategic program agreements with DreamFi Inc. and Tallied Technologies, aiming to expand its strategic initiatives [4]. - FinWise continues to focus on disciplined growth and operational excellence to drive long-term progress and sustainable value creation for shareholders [4].

Core Insights - FinWise Bancorp reported strong financial performance for the second quarter of 2025, with loan originations reaching $1.5 billion, net income of $4.1 million, and diluted earnings per share of $0.29, reflecting solid growth and effective expense management [2][4][6]. Financial Performance - Loan originations totaled $1.5 billion for the quarter, an increase from $1.3 billion in the previous quarter and $1.2 billion year-over-year [6][10]. - Net income was $4.1 million, up from $3.2 million in the prior quarter and the same period last year [6][19]. - Diluted earnings per share were $0.29, compared to $0.23 in the previous quarter and $0.24 a year ago [6][19]. - The efficiency ratio improved to 59.5%, down from 64.8% in the prior quarter and 66.8% year-over-year, indicating better productivity [6][17]. Asset Quality - Nonperforming loans increased to $39.7 million, representing 7.5% of total loans held-for-investment, compared to $29.9 million (6.1%) in the prior quarter and $27.9 million (6.5%) a year ago [29][30]. - The allowance for credit losses was 3.1% of total loans held-for-investment, up from 2.9% in the previous quarter [29][30]. Balance Sheet - Total assets grew to $842.5 million, up from $804.1 million in the prior quarter and $617.8 million year-over-year [20][43]. - Total shareholders' equity increased to $182.0 million, compared to $177.4 million in the previous quarter and $165.8 million a year ago [25][43]. Non-Interest Income and Expenses - Non-interest income for the quarter was $10.3 million, an increase from $7.8 million in the prior quarter and $5.2 million year-over-year, driven by higher Strategic Program fees and gains on loan sales [13][15]. - Total non-interest expenses rose to $14.9 million, compared to $14.3 million in the previous quarter, primarily due to increased salaries and employee benefits [16][19]. Capital Ratios - The leverage ratio was 18.0%, down from 18.8% in the prior quarter, but still above the regulatory well-capitalized requirement of 9.0% [27].