Company: FCFS
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000840489-25-000032
Chunk: 21

Company: FirstCash Holdings, Inc.
Filing Date: 2025-02-03
Form: 10-K
Item: Item 7
Chunk 21
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%Provision for lease losses (1)163,937 177,418 (8)%Charge-offs(186,123)(167,952)11 %Recoveries7,095 6,710 6 %Balance at end of period$80,661 $95,752 (16)%Leased merchandise portfolio metrics:Provision rate (2)29 %28 %Average monthly net charge-off rate (3)6.3 %5.4 %Delinquency rate (4)24.4 %21.7 %Allowance for loan losses:Balance at beginning of period$96,454 $84,833 14 %Provision for loan losses143,827 123,030 17 %Charge-offs(130,812)(117,961)11 %Recoveries7,536 6,552 15 %Balance at end of period$117,005 $96,454 21 %Finance receivables portfolio metrics:Provision rate (2)28 %30 %Average monthly net charge-off rate (3)4.3 %4.7 %Delinquency rate (4)20.0 %21.8 %

(1)Includes $0.5 million and $1.6 million of provision for lease losses from intersegment transactions during 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated provision for lease losses during 2024 and 2023 totaled $163.4 million and $175.9 million, respectively.

(2)Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated. 

(3)Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.

(4)Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

55

LTO Operations

Leased merchandise, before allowance for lease losses, decreased 22% as of December 31, 2024 compared to December 31, 2023. The decrease was primarily due to decreased gross transaction volumes originated due