Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 86

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 and interest cash flows, future charge-off rates and discount rates (which consider current interest rates and are adjusted for credit risk, among other factors).The carrying value of the unsecured credit facilities approximates fair value as of June 30, 2025, June 30, 2024 and December 31, 2024. The fair value of the unsecured credit facilities is estimated based on market values for debt issuances with similar characteristics or rates currently available for debt with similar terms. In addition, the unsecured credit facilities have a variable interest rate based on the prevailing secured overnight financing rate (“SOFR”) or the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) and reprice with any changes in SOFR or TIIE. The fair value of the senior unsecured notes is estimated based on quoted prices in markets that are not active.

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Note 6 - Finance Receivables, Net 

Finance receivables, net, which include retail installment sales agreements and bank-originated loans, consist of the following (in thousands):As of June 30,As ofDecember 31,202520242024Finance receivables, gross$311,424 $227,694 $294,166 Merchant partner discounts and premiums, net(27,946)(16,935)(22,833)Unearned origination fees(6,086)(5,397)(6,827)Finance receivables, amortized cost277,392 205,362 264,506 Less allowance for loan losses(122,874)(99,961)(117,005)Finance receivables, net$154,518 $105,401 $147,501 The following table details the changes in the allowance for loan losses (in thousands):Three Months EndedSix Months EndedJune 30,June 30,2025202420252024Balance at beginning of period$118,342 $96,020 $117,005 $96,454 Provision for loan losses41,761 31,116 78,121 61,534 Charge-offs(40,078)(28,813)(78,497)(62,092)Recoveries2,849 1,638 6,245 4,065 Balance at end of period$122,874 $99,961 $122,874 $99,961 

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The following is an assessment of the credit quality indicators of the amortized cost of