ONEMAIN: Discussion and analysis by management of the financial situation and operating results. (form 10-Q)



An index of our management’s discussion and analysis follows:

                                                   Page

  Forward-Looking Statements                              39
  Overview                                                41
  Recent Developments and Outlook                         42
  Results of Operations                                   45
  Segment Results                                         48
  Credit Quality                                          50
  Liquidity and Capital Resources                         55
  Off-Balance Sheet Arrangements                          60
  Critical Accounting Policies and Estimates              60
  Recent Accounting Pronouncements                        60
  Seasonality                                             60



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                          Forward-Looking Statements



This report contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are
not statements of historical fact but instead represent only management's
current beliefs regarding future events. By their nature, forward-looking
statements are subject to risks, uncertainties, assumptions, and other important
factors that may cause actual results, performance or achievements to differ
materially from those expressed in or implied by such forward-looking
statements. We caution you not to place undue reliance on these forward-looking
statements, which speak only as of the date they were made. We do not undertake
any obligation to update or revise these forward-looking statements to reflect
events or circumstances after the date of this report or to reflect the
occurrence of unanticipated events or the non-occurrence of anticipated events,
whether as a result of new information, future developments, or otherwise,
except as required by law. Forward-looking statements include, without
limitation, statements concerning future plans, objectives, goals, projections,
strategies, events, or performance, and underlying assumptions and other
statements related thereto. Statements preceded by, followed by or that
otherwise include the words "anticipates," "appears," "are likely," "believes,"
"estimates," "expects," "foresees," "intends," "plans," "projects," and similar
expressions or future or conditional verbs such as "would," "should," "could,"
"may," or "will" are intended to identify forward-looking statements. Important
factors that could cause actual results, performance, or achievements to differ
materially from those expressed in or implied by forward-looking statements
include, without limitation, the following:

•adverse changes in general economic conditions, including the interest rate
environment and the financial markets;
•risks associated with COVID-19 and the measures taken in response thereto;
•the sufficiency of our allowance for finance receivable losses;
•increased levels of unemployment and personal bankruptcies;
•natural or accidental events such as earthquakes, hurricanes, pandemics or
floods affecting our customers, collateral, or our facilities;
•disruptions in the operation of our information systems, or other events
disrupting business or commerce;
•a failure in or breach of our operational or security systems or infrastructure
or those of third parties, including as a result of cyber-attacks;
•our credit risk scoring models may be inadequate;
•adverse changes in our ability to attract and retain employees or key
executives;
•increased competition or adverse changes in customer responsiveness to our
distribution channels or products;
•changes in federal, state, or local laws, regulations, or regulatory policies
and practices or increased regulatory scrutiny of our industry;
•risks associated with our insurance operations;
•the costs and effects of any actual or alleged violations of any federal,
state, or local laws, rules or regulations;
•the costs and effects of any fines, penalties, judgments, decrees, orders,
inquiries, investigations, subpoenas, or enforcement or other proceedings of any
governmental or quasi-governmental agency or authority;
•our substantial indebtedness and our continued ability to access the capital
markets and maintain adequate current sources of funds to satisfy our cash flow
requirements;
•our ability to comply with all our covenants; and
•the effects of any downgrade of our debt ratings by credit rating agencies.
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Contents


We also direct readers to the other risks and uncertainties discussed in Part I
- Item 1A. "Risk Factors" in our Annual Report and in other documents we file
with the SEC.

If one or more of these or other risks or uncertainties materialize, or if our
underlying assumptions prove to be incorrect, our actual results may vary
materially from what we may have expressed or implied by these forward-looking
statements. You should specifically consider the factors identified in this
report and in the documents we file with the SEC, including our Annual Report,
that could cause actual results to differ before making an investment decision
to purchase our securities and should not place undue reliance on any of our
forward-looking statements. Furthermore, new risks and uncertainties arise from
time to time, and it is impossible for us to predict those events or how they
may affect us.
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Overview



We are a leading provider of responsible personal loan products, primarily to
near-prime customers. Our network of approximately 1,400 branch offices in 44
states is staffed with expert personnel and is complemented by our centralized
operations and our digital platform, which provides current and prospective
customers the option of applying for a personal loan via our website,
www.omf.com. The information on our website is not incorporated by reference
into this report. In connection with our personal loan business, our insurance
subsidiaries offer our customers optional credit and non-credit insurance, and
other products.

In addition to our loan origination, insurance and other product sales activities, we manage loans that belong to us and loans that belong to third parties; pursue strategic acquisitions and disposals of assets and businesses, including loan portfolios or other financial assets; and may establish joint ventures or enter into other strategic alliances.

OUR PRODUCTS

Our product offerings include:


•Personal Loans - We offer personal loans through our branch network,
centralized operations, and our website, www.omf.com, to customers who generally
need timely access to cash. Our personal loans are non-revolving, with a fixed
rate, fixed terms generally between three and six years, and are secured by
automobiles, other titled collateral, or are unsecured. At September 30, 2021,
we had approximately 2.33 million personal loans, of which 51% were secured by
titled property, totaling $18.8 billion of net finance receivables, compared to
approximately 2.30 million personal loans, of which 53% were secured by titled
property, totaling $18.1 billion at December 31, 2020. We also service personal
loans for our whole loan sale partners which we commenced during the first
quarter of 2021. At September 30, 2021, we managed a combined total of
2.37 million customer accounts and $19.1 billion of managed receivables.

•Insurance Products - We offer our customers optional credit insurance products
(life insurance, disability insurance, and involuntary unemployment insurance)
and optional non-credit insurance products through both our branch network and
our centralized operations. Credit insurance and non-credit insurance products
are provided by our affiliated insurance companies. We offer GAP coverage as a
waiver product or insurance. We also offer optional membership plans from an
unaffiliated company.

Our non-originating legacy products include:


•Other Receivables - We ceased originating real estate loans in 2012 and we
continue to service or sub-service liquidating real estate loans. Effective
September 30, 2018, our real estate loans previously classified as other
receivables were transferred from held for investment to held for sale due to
management's intent to no longer hold these finance receivables for the
foreseeable future. Effective March 31, 2020, our real estate loans held for
sale are reported in "Other assets" of our consolidated balance sheets.

OUR SEGMENT


At September 30, 2021, Consumer and Insurance ("C&I") is our only reportable
segment. The remaining components (which we refer to as "Other") consist of our
liquidating SpringCastle Portfolio servicing activity and our non-originating
legacy operations, which primarily include our liquidating real estate loans.
See Note 13 of the Notes to the Condensed Consolidated Financial Statements
included in this report for more information about our segment.

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Recent Developments and Outlook



RECENT DEVELOPMENTS

Credit Cards – BrightWay and BrightWay +


As part of our mission to improve the financial well-being of hardworking
Americans, we continue to invest in new products and services that help our
customers solve for their present needs while helping them build a stronger
financial tomorrow. In the third quarter of 2021, select branches began offering
our two credit cards, BrightWay and BrightWay+, giving our customers access to
more credit, while also enabling a better financial future. Our credit cards
will help customers take concrete steps to improve their financial well-being by
offering tangible rewards for credit building behaviors. This is an important
milestone for our company as we continue to deepen our existing customer
relationships, attract new customers, and become the lender of choice for
near-prime consumers. During the remainder of 2021, we will continue to expand
our credit cards offering across our branch network, and also introduce
direct-to-consumer card marketing.

Issue and repayment of unsecured debt

Redemption of senior bonds at 7.75% maturing in 2021


On January 8, 2021, OMFC paid a net aggregate amount of $681 million, inclusive
of accrued interest and premiums, to complete the redemption of its 7.75% Senior
Notes due 2021.

Offer of social bonds – Issue of 3.50% Senior Notes maturing in 2027


As part of our commitment to improve the financial well-being of hardworking
Americans, OMFC issued its inaugural Social Bond offering on June 22, 2021 for a
total of $750 million aggregate principal amount of 3.50% Senior Notes due 2027.
We intend to allocate an amount equivalent to the net proceeds of the offering
to finance or re-finance, in part or in full, a portfolio of new or existing
loans that meet the eligibility criteria of the OneMain Social Bond Framework.
This offering advances our goal of enabling access to responsible financial
products and services for vulnerable and/or historically underserved
populations. At least 75% of the loans funded by the Social Bond will be
allocated to women and/or minority borrowers as outlined in OneMain's Social
Bond Framework, which is available on OneMain's Investor Relations website.

Issue of 3.875% Senior Notes maturing in 2028

At August 11, 2021, the OMFC issued a total of $ 600 million of the total principal amount of senior bonds at 3.875% maturing in 2028.


For further information regarding the issuances and redemption of our unsecured
debt, see Note 6 of the Notes to the Condensed Consolidated Financial Statements
included in this report.

Securitization transactions carried out: OMFIT 2021-1 and ODART 2021-1

For more information on our secured debt issuances, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.

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Apollo-Värde Group Share Sales

We entered into two underwriting agreements, in February and April of 2021, with
certain entities managed by affiliates of Apollo-Värde Group, in their
capacities as selling stockholders (the "Selling Stockholders"), and several
underwriters (the "Underwriters"), for sale by the Selling Stockholders of up to
9,200,000 shares per agreement (a combined total of 18,400,000 shares) of OMH's
common stock. The two secondary public offerings closed during the first half of
2021 and resulted in the sale by the Selling Stockholders to the Underwriters of
18,400,000 shares of OMH common stock. We did not receive any proceeds from the
sales of the shares by the Selling Stockholders in these transactions.

We entered into two underwriting agreements, in July and August of 2021, with an
entity managed by affiliates of Apollo, in its capacity as selling stockholder
(the "Selling Stockholder"), and an underwriter (the "Underwriter") for the sale
by the Selling Stockholder of up to 10,925,000 and 8,050,000 shares,
respectively, of OMH's common stock. The two secondary public offerings closed
during the third quarter of 2021 and resulted in the sale by the Selling
Stockholder to the Underwriter for a total of 18,975,000 shares of OMH common
stock. We did not receive any proceeds from the sale of the shares by the
Selling Stockholders in either transaction.

Simultaneous share buyback


On August 3, 2021, pursuant to the July 2021 underwriting agreement, we
concurrently purchased from the Underwriter 1,700,000 of the shares of OMH
common stock at a purchase price of $58.36 per share, which is equal to the
price at which the Underwriter purchased the shares from the Selling
Stockholder, resulting in an aggregate purchase price of $99 million (the
"Concurrent Share Buyback"). The terms and conditions of the Concurrent Share
Buyback were reviewed and approved by a special committee of the OMH Board of
Directors, comprised of independent and disinterested directors of OMH. The
Concurrent Share Buyback was made pursuant to a new OMH board authorization and
did not reduce our availability under the stock repurchase program commenced
during the second quarter of 2021. The Concurrent Share Buyback was funded from
our existing cash on hand. The Underwriter did not receive any compensation for
the shares of OMH common stock repurchased by OMH.

Share buyback program


During the second quarter of 2021 we commenced our stock repurchase program. As
of September 30, 2021, we have $78 million of authorized share repurchase
capacity, excluding fees and commissions, remaining under the program. See
"Liquidity and Capital Resources" under Management's Discussion and Analysis of
Financial Condition and Results of Operations and Item 2. Unregistered Sales of
Equity Securities and Use of Proceeds of Part II included in this report for
further information on our shares repurchased during the three months ended
September 30, 2021.

Cash dividends to OMH ordinary shareholders

For more information on the quarterly dividends declared by OMH, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.

Acquisition of Trim


On May 14, 2021, we completed our previously announced acquisition of Ask
Benjamin, Inc. ("Trim"), a customer-focused financial wellness fintech company.
The acquisition of Trim will enhance our mission to help our customers progress
to a better financial future and further expand the ways in which we help our
customers improve their financial well-being.

Management response to the COVID-19 pandemic


In early 2020, COVID-19 evolved into a global pandemic, resulting in widespread
volatility and deterioration in economic conditions across the United States.
Governmental authorities continue to take steps to combat the spread of
COVID-19, including the ongoing distribution of COVID-19 vaccines. During the
pandemic, we continue to focus on assisting and supporting our customers and
employees, while remaining committed to the safety of our employees. We continue
to serve our customers by keeping our branch locations open with appropriate
protective protocols in place and through our digital closing solutions. This
combination has enhanced our operating performance through the pandemic and
enabled us to serve and support our customers effectively during these
unprecedented times. We believe the actions we have taken and the underlying
strength of our balance sheet has positioned us to take advantage of growth
opportunities as the economy continues to recover.

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OUTLOOK

We are actively managing the continuing impacts of the COVID-19 pandemic and
remain prepared for any additional opportunities or challenges that may impact
our industry or business. The impact on our financial condition and results of
operations depends on the continued progress of the economic recovery, which
includes states actively open for business, and ultimately, unemployment rates.
There is also uncertainty regarding the effects of additional strains of
COVID-19 and the impact of any related government actions. Current trends of
originations and credit performance are favorable, but we continue to diligently
monitor the economy and its impact to our customers. We will continue to
incorporate updates, as necessary, to our macroeconomic assumptions which could
lead to further adjustments in our allowance for finance receivable losses,
allowance ratio, and provision for finance receivable losses.

Our experienced management team continues to remain focused on our strategic
priorities of maintaining a solid balance sheet, with an adequate liquidity
runway and capital coverage, upholding a conservative and disciplined
underwriting model, and building strong relationships with our customers. We are
well positioned to continue supporting and serving our customers, investing in
our business and driving growth while creating value for our stockholders as we
effectively navigate the evolving economic, social, political, and regulatory
environments in which we operate. We further describe our key initiatives and
strategies under "Recent Developments and Outlook" of the Management's
Discussion and Analysis of Financial Condition and Results of Operations in Part
II - Item 7 included in our Annual Report.
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                             Results of Operations


The results of OMFC are consolidated into the results of OMH. Due to the nominal
differences between OMFC and OMH, content throughout this section relates only
to OMH. See Note 1 of the Notes to the Condensed Consolidated Financial
Statements included in this report for further information.

OMH CONSOLIDATED RESULTS

See the table below for OMH’s consolidated operating results and certain financial statistics. A more in-depth discussion of OMH’s operating results for our operating segment is provided under “Segment Results” below.

                                                                At or for the                                  At or for the
                                                       Three Months Ended September 30,               Nine Months Ended September 30,
(dollars in millions, except per share
amounts)                                                  2021                    2020                   2021                    2020

Interest income                                    $         1,113           $     1,089          $         3,244           $     3,273
Interest expense                                               237                   255                      703                   781
Provision for finance receivable losses                        226                   231                      356                 1,186
Net interest income after provision for
finance receivable losses                                      650                   603                    2,185                 1,306

Other revenues                                                 155                   101                      396                   390
Other expenses                                                 429                   363                    1,195                 1,194
Income before income taxes                                     376                   341                    1,386                   502
Income taxes                                                    88                    91                      335                   131
Net income                                         $           288           $       250          $         1,051           $       371

Share Data:

Earnings per share:

Diluted                                            $          2.17           $      1.86          $          7.84           $      2.75

Selected Financial Statistics *
Finance receivables held for investment:
Net finance receivables                            $        18,843           $    17,817          $        18,843           $    17,817
Number of accounts                                       2,334,395             2,297,167                2,334,395             2,297,167
Average net receivables                            $        18,545           $    17,740          $        18,029           $    18,010
Yield                                                        23.79   %             24.39  %                 24.02   %             24.24  %
Gross charge-off ratio                                        4.76   %              6.14  %                  5.41   %              6.90  %
Recovery ratio                                               (1.24)  %             (0.95) %                 (1.23)  %             (0.91) %
Net charge-off ratio                                          3.52   %              5.19  %                  4.19   %              5.99  %
30-89 Delinquency ratio                                       2.20   %              1.95  %                  2.20   %              1.95  %
Origination volume                                 $         3,870           $     2,887          $         9,989           $     7,523
Number of accounts originated                              404,602               300,376                1,018,924               771,628
Debt balances:
Long-term debt balance                             $        17,661           $    17,531          $        17,661           $    17,531
Average daily debt balance                                  17,680                17,546                   17,192                18,331

* See “Glossary” at the beginning of this report for formulas and definitions of our main performance ratios.

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Comparison of Consolidated Results for the Three and Nine Months Ended September
30, 2021 and 2020

Interest income increased $24 million or 2% for the three months ended September
30, 2021 when compared to the same period in 2020 primarily due to growth in our
loan portfolio, partially offset by lower yield.

Interest income has declined $ 29 million or 1% for the nine months ended September 30, 2021 compared to the same period in 2020 mainly due to a lower yield.

Interest expense has decreased $ 18 million or 7% for the three months ended
September 30, 2021 compared to the same period in 2020 mainly due to a lower average cost of funds, partially offset by an increase in average debt.

Interest expense has decreased $ 78 million or 10% for the nine months ended
September 30, 2021 compared to the same period in 2020, mainly due to a decrease in average debt and a lower average cost of funds.

See Notes 6 and 7 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information on our long-term debt, securitization transactions and revolving conduit facilities.


Provision for finance receivable losses decreased $5 million or 2% for the three
months ended September 30, 2021 when compared to the same period in 2020
primarily driven by a decrease in our net charge-offs due to improved credit
performance aligning with governmental stimulus payments, partially offset by a
build in our allowance for finance receivable losses due to growth in our loan
portfolio.

Provision for finance receivable losses decreased $830 million or 70% for the
nine months ended September 30, 2021 when compared to the same period in 2020
primarily due to an improved outlook for unemployment and macroeconomic
conditions, along with the decrease in our net charge-offs due to improved
credit performance aligning with governmental stimulus payments, as compared to
a build in our allowance reserve at the onset of the COVID-19 pandemic.

Other revenues increased $54 million or 53% for the three months ended September
30, 2021 when compared to the same period in 2020 primarily due to a net loss on
the repurchase and repayment of debt in the prior year quarter and the gains on
the sales of finance receivables associated with the whole loan sale program
that commenced in the current year.

Other revenues increased $6 million or 2% for the nine months ended September
30, 2021 when compared to the same period in 2020 primarily due to the gains on
the sales of finance receivables associated with the whole loan sale program
that commenced in the current year and an increase in membership plans fee
revenue due to loan origination growth. The increase was partially offset by
higher net losses on the repurchases and repayments of debt and a decrease in
investment revenue driven by lower interest rates on cash.

Other expenses increased $66 million or 18% for the three months ended September
30, 2021 when compared to the same period in 2020 primarily due to the expense
associated with the cash-settled stock-based awards in the current period and an
increase in general operating expenses due to growth in our receivables and our
strategic investments in the business, including new products, compared to
COVID-19 cost cutting measures in the prior year.

Other expenses remained relatively consistent for the nine months ended
September 30, 2021 when compared to the same period in 2020 primarily due to a
decrease in insurance policy and benefits claims expense resulting from lower
than expected involuntary unemployment insurance claims, offset by the expense
associated with the cash-settled stock-based awards in the current period and an
increase in general operating expenses due to growth in our receivables and our
strategic investments in the business, including new products, compared to
COVID-19 cost cutting measures in the prior year.

Income taxes totaled $335 million for the nine months ended September 30, 2021
compared to $131 million in the same period in 2020 due to higher pre-tax income
in the current period.

For the three and nine months ended September 30, 2021, the effective tax rates
were 23.5% and 24.2%, respectively. For the three and nine months ended
September 30, 2020, the effective tax rates were 26.8% and 26.1%, respectively.
The effective tax rates differed from the federal statutory rate of 21%
primarily due to the effect of state income taxes.

See note 11 to the condensed consolidated financial statements included in this report for more information on effective tax rates.

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NON-GAAP FINANCIAL MEASURES

Management uses C&I adjusted pretax income (loss), a non-GAAP financial measure,
as a key performance measure of our segment. C&I adjusted pretax income (loss)
represents income (loss) before income taxes on a Segment Accounting Basis and
excludes the expense associated with the cash-settled stock-based awards, direct
costs associated with COVID-19, acquisition-related transaction and integration
expenses, net loss resulting from repurchases and repayments of debt, and
restructuring charges. Management believes C&I adjusted pretax income (loss) is
useful in assessing the profitability of our segment.

Management also uses C&I pretax capital generation, a non-GAAP financial
measure, as a key performance measure of our segment. This measure represents
C&I adjusted pretax income as discussed above and excludes the change in our C&I
allowance for finance receivable losses in the period while still considering
the C&I net charge-offs incurred during the period. Management believes that C&I
pretax capital generation is useful in assessing the capital created in the
period impacting the overall capital adequacy of the Company. Management
believes that the Company's reserves, combined with its equity, represent the
Company's loss absorption capacity.

Management utilizes both C&I adjusted pretax income (loss) and C&I pretax
capital generation in evaluating our performance. Additionally, both of these
non-GAAP measures are consistent with the performance goals established in OMH's
executive compensation program. C&I adjusted pretax income (loss) and C&I pretax
capital generation are non-GAAP financial measures and should be considered
supplemental to, but not as a substitute for or superior to, income (loss)
before income taxes, net income, or other measures of financial performance
prepared in accordance with GAAP.

OMH’s reconciliations of profit before income tax on a segment accounting basis with adjusted profit before tax of C&I (non-GAAP) and pre-tax capital generation of C&I (non-GAAP) were as follows:

                                                                 Three Months Ended                   Nine Months Ended
                                                                   September 30,                        September 30,
(dollars in millions)                                          2021               2020              2021               2020

Consumer and Insurance
Income before income taxes - Segment Accounting
Basis                                                      $      388          $   351          $    1,429          $   530
Adjustments:
Cash-settled stock-based awards                                    31                -                  31                -
  Direct costs associated with COVID-19                             1                4                   5               13
Acquisition-related transaction and integration
expenses                                                            -                2                   -               10
  Net loss on repurchases and repayments of debt                    1               35                  40               35

Restructuring charges                                               -                1                   -                7
Adjusted pretax income (non-GAAP)                          $      421       

$ 393 $ 1,505 $ 595


Provision for finance receivable losses                    $      224          $   232          $      351          $ 1,184
Net charge-offs                                                  (165)            (232)               (564)            (810)
Pretax capital generation (non-GAAP)                       $      480          $   393          $    1,292          $   969


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                                Segment Results



The results of OMFC are consolidated into the results of OMH. Due to the nominal
differences between OMFC and OMH, content throughout this section relate only to
OMH. See Note 1 of the Notes to the Condensed Consolidated Financial Statements
included in this report for further information.

See Note 18 of the Notes to the Consolidated Financial Statements in Part II -
Item 8 included in our Annual Report for a description of our segment and
methodologies used to allocate revenues and expenses to our C&I segment. See
Note 13 of the Notes to the Condensed Consolidated Financial Statements included
in this report for reconciliations of segment total to condensed consolidated
financial statement amounts.

CONSUMER AND INSURANCE

OMH’s adjusted pre-tax profit and selected financial statistics for C&I on an adjusted segment accounting basis were as follows:

                                                               At or for the                                  At or for the
                                                      Three Months Ended September 30,               Nine Months Ended September 30,
(dollars in millions)                                    2021                    2020                   2021                    2020

Interest income                                   $         1,111           $     1,086          $         3,237               $3,260
Interest expense                                              235                   250                      698                765
Provision for finance receivable losses                       224                   232                      351               1,184
Net interest income after provision for
finance receivable losses                                     652                   604                    2,188               1,311
Other revenues                                                152                   134                      435                415
Other expenses                                                383                   345                    1,118               1,131
Adjusted pretax income (non-GAAP)                 $           421           $       393          $         1,505                $595

Selected Financial Statistics *
Finance receivables held for investment:
Net finance receivables                           $        18,847           $    17,826          $        18,847           $    17,826
Number of accounts                                      2,334,395             2,297,167                2,334,395             2,297,167

Average net receivables                           $        18,549           $    17,750          $        18,034           $    18,023
Yield                                                       23.77   %             24.34  %                 24.00   %             24.16  %
Gross charge-off ratio                                       4.77   %              6.15  %                  5.41   %              6.91  %
Recovery ratio                                              (1.24)  %             (0.95) %                 (1.22)  %             (0.91) %
Net charge-off ratio                                         3.52   %              5.20  %                  4.19   %              6.00  %
30-89 Delinquency ratio                                      2.20   %              1.95  %                  2.20   %              1.95  %
Origination volume                                $         3,870           $     2,887          $         9,989           $     7,523
Number of accounts originated                             404,602               300,376                1,018,924               771,628


* See “Glossary” at the beginning of this report for formulas and definitions of our main performance ratios.


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Table of Contents Comparison of Adjusted Income Before Tax for the Three and Nine Months Ended
September 30, 2021 and 2020


Interest income increased $25 million or 2% for the three months ended September
30, 2021 when compared to the same period in 2020 primarily due to growth in our
loan portfolio, partially offset by lower yield.

Interest income has decreased $ 23 million or 1% for the nine months ended September 30, 2021 compared to the same period in 2020 mainly due to a lower yield.

Interest expense has decreased $ 15 million or 6% for the three months ended
September 30, 2021 compared to the same period in 2020 mainly due to a lower average cost of funds, partially offset by an increase in average debt.


Interest expense decreased $67 million or 9% for the nine months ended September
30, 2021 when compared to the same period in 2020 primarily due to a decrease in
average debt along with a lower average cost of funds.

See notes 6 and 7 of the notes to the condensed consolidated financial statements included in this report for more information on our long-term debt, our securitization transactions and our revolving financing facilities.


Provision for finance receivable losses decreased $8 million or 3% for the three
months ended September 30, 2021 when compared to the same period in 2020
primarily driven by a decrease in our net charge-offs due to improved credit
performance aligning with governmental stimulus payments, partially offset by a
build in our allowance for finance receivable losses due to growth in our loan
portfolio.

Provision for finance receivable losses decreased $833 million or 70% for the
nine months ended September 30, 2021 when compared to the same period in 2020
primarily due to an improved outlook for unemployment and macroeconomic
conditions, along with the decrease in our net charge-offs due to improved
credit performance aligning with governmental stimulus payments, as compared to
a build in our allowance reserve at the onset of the COVID-19 pandemic.

Other revenues increased $18 million or 13% for the three months ended September
30, 2021 when compared to the same period in 2020 primarily due to the gains on
the sales of finance receivables associated with the whole loan sale program
that commenced in the current year.

Other revenues increased $20 million or 5% for the nine months ended September
30, 2021 when compared to the same period in 2020 primarily due to the gains on
the sales of finance receivables associated with the whole loan sale program
that commenced in the current year and an increase in membership plans fee
revenue due to loan origination growth. The increase was partially offset by a
decrease in investment revenue primarily driven by lower interest rates on cash.

Other expenses increased $38 million or 11% for the three months ended September
30, 2021 when compared to the same period in 2020 primarily due to an increase
in general operating expenses due to growth in our receivables and our strategic
investments in the business, including new products, compared to COVID-19 cost
cutting measures in the prior year.

Other expenses decreased $13 million or 1% for the nine months ended September
30, 2021 when compared to the same period in 2020 primarily due to a decrease in
insurance policy and benefits claims expense due to lower than expected
involuntary unemployment insurance claims, partially offset by an increase in
general operating expenses due to growth in our receivables and our strategic
investments in the business, including new products, compared to COVID-19 cost
cutting measures in the prior year.
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                                Credit Quality



FINANCE RECEIVABLES

Our net finance receivables, consisting of personal loans, were $18.8 billion at
September 30, 2021 and $18.1 billion at December 31, 2020. Our personal loans
are non-revolving, with a fixed-rate, fixed terms generally between three and
six years, and are secured by automobiles, other titled collateral, or are
unsecured. We consider the delinquency status of our finance receivables as our
key credit quality indicator. We monitor the delinquency of our finance
receivable portfolio, including the migration between the delinquency buckets
and changes in the delinquency trends to manage our exposure to credit risk in
the portfolio. Our branch and central operation team members work with customers
as necessary and offer a variety of borrower assistance programs to help
customers continue to make payments.

DELINQUENCY


We monitor delinquency trends to evaluate the risk of future credit losses and
employ advanced analytical tools to manage our exposure. Team members are
actively engaged in collection activities throughout the early stages of
delinquency. We closely track and report the percentage of receivables that are
contractually 30-89 days past due as a benchmark of portfolio quality,
collections effectiveness, and as a strong indicator of losses in coming
quarters.

When finance receivables are contractually 60 days past due, we consider these
accounts to be at an increased risk for loss and we transfer collection of these
accounts to our centralized operations. Use of our centralized operations teams
for managing late-stage delinquency allows us to apply more advanced collection
technologies and tools, and drives operating efficiencies in servicing. At 90
days contractually past due, we consider our finance receivables to be
nonperforming. We stop accruing finance charges and reverse finance charges
previously accrued on nonperforming loans.

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The delinquency information for net finance receivables is as follows:
                                        Consumer             Segment to
                                           and                  GAAP            GAAP
(dollars in millions)                   Insurance            Adjustment         Basis

September 30, 2021
Current                                $ 18,137             $        (4)     $ 18,133
30-59 days past due                         258                       -           258
Delinquent (60-89 days past due)            157                       -     

157

Performing                               18,552                      (4)    

18 548


Nonperforming (90+ days past due)           295                       -           295
Total net finance receivables          $ 18,847             $        (4)     $ 18,843

Delinquency ratio
30-89 days past due                        2.20  %                      *        2.20  %
30+ days past due                          3.77  %                      *        3.77  %
60+ days past due                          2.40  %                      *        2.40  %
90+ days past due                          1.57  %                      *        1.57  %

December 31, 2020
Current                                $ 17,362             $        (7)     $ 17,355
30-59 days past due                         251                       -           251
Delinquent (60-89 days past due)            162                       -     

162

Performing                               17,775                      (7)    

17 768


Nonperforming (90+ days past due)           316                       -           316
Total net finance receivables          $ 18,091             $        (7)     $ 18,084

Delinquency ratio
30-89 days past due                        2.28  %                      *        2.28  %
30+ days past due                          4.03  %                      *        4.03  %
60+ days past due                          2.64  %                      *        2.64  %
90+ days past due                          1.75  %                      *        1.75  %


* Not applicable




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ALLOWANCE FOR FINANCE RECEIVABLE LOSSES

We estimate and record a provision for financial credit losses to cover expected credit losses over the life of our financial receivables. Our allowance for financial credit losses may fluctuate based on changes in portfolio growth, credit quality and economic conditions.


Our current methodology to estimate expected credit losses used the most recent
macroeconomic forecasts, which incorporated the impacts and expected recovery
from COVID-19 on the U.S. economy. We also considered known government stimulus
measures, the involuntary unemployment insurance coverage of our portfolio, and
our borrower assistance efforts. Our forecast leveraged economic projections
from an industry leading forecast provider. At September 30, 2021, our economic
forecast used a reasonable and supportable period of 12 months. We may
experience further changes to the macroeconomic assumptions within our forecast,
as well as changes to our loan loss performance outlook, both of which could
lead to further changes in our allowance for finance receivable losses,
allowance ratio, and provision for finance receivable losses.

The variations in the provision for financial losses receivable are as follows:

                                               Consumer             Segment to
                                                 and                   GAAP         Consolidated
(dollars in millions)                         Insurance             Adjustment          Total

Three Months Ended September 30, 2021
Balance at beginning of period               $    2,011            $      (11)     $       2,000
Provision for finance receivable losses             224                     2                226
Charge-offs                                        (223)                    -               (223)
Recoveries                                           58                     -                 58
Balance at end of period                     $    2,070            $       (9)     $       2,061

Three Months Ended September 30, 2020
Balance at beginning of period               $    2,342            $      (18)     $       2,324
Provision for finance receivable losses             232                    (1)               231
Charge-offs                                        (274)                    -               (274)
Recoveries                                           42                     1                 43
Balance at end of period                     $    2,342            $      (18)     $       2,324



Nine Months Ended September 30, 2021
Balance at beginning of period               $ 2,283             $ (14)     $ 2,269
Provision for finance receivable losses          351                 5          356
Charge-offs                                     (730)                -         (730)
Recoveries                                       166                 -          166
Balance at end of period                     $ 2,070             $  (9)     $ 2,061

Allowance ratio                                10.98  %              (a)      10.94  %

Nine Months Ended September 30, 2020
Balance at beginning of period               $   849             $ (20)     $   829
Impact of adoption of ASU 2016-13 (b)          1,119                (1)     

1,118

Provision for finance receivable losses        1,184                 2        1,186
Charge-offs                                     (932)                1         (931)
Recoveries                                       122                 -          122
Balance at end of period                     $ 2,342             $ (18)     $ 2,324

Allowance ratio                                13.14  %              (a)      13.05  %

(a) Not applicable. (b) Following the adoption of ASU 2016-13, we recorded a one-time adjustment to the provision for financial losses receivable.

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The current delinquency status of our finance receivable portfolio, inclusive of
recent borrower performance, volume of our TDR activity, level and
recoverability of collateral securing our finance receivable portfolio, and the
reasonable and supportable forecast of economic conditions are the primary
drivers that can cause fluctuations in our allowance for finance receivable
losses from period to period. We monitor the allowance ratio to ensure we have a
sufficient level of allowance for finance receivable losses based on the
estimated lifetime expected credit losses in our finance receivable portfolio.
The allowance for finance receivable losses as a percentage of net finance
receivables decreased from prior period primarily due to an improved outlook for
unemployment and macroeconomic conditions, partially offset by growth in our
loan portfolio, as compared to a build in our allowance reserve at the onset of
the COVID-19 pandemic. See Note 4 of the Notes to the Condensed Consolidated
Financial Statements included in this report for more information about the
changes in the allowance for finance receivable losses.

TDR FINANCING RECEIVABLES


We make modifications to our finance receivables to assist borrowers
experiencing financial difficulties. When we modify a loan's contractual terms
for economic or other reasons related to the borrower's financial difficulties
and grant a concession that we would not otherwise consider, we classify that
loan as a TDR finance receivable.

The information relating to net financial receivables TDR is as follows:

                                                     Consumer             Segment to
                                                       and                   GAAP         GAAP
(dollars in millions)                               Insurance             Adjustment      Basis

September 30, 2021
TDR net finance receivables                        $      681            $      (25)     $ 656
Allowance for TDR finance receivable losses               292                   (11)       281

December 31, 2020
TDR net finance receivables                        $      728            $      (37)     $ 691
Allowance for TDR finance receivable losses               332                   (18)       314



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DISTRIBUTION OF FINANCE RECEIVABLES BY FICO SCORE

There are many different categorizations used in the consumer lending industry
to describe the creditworthiness of a borrower, including prime, near-prime, and
sub-prime. While management does not utilize FICO scores to manage credit
quality, we have presented the following on how we group FICO scores into said
categories for comparability purposes across our industry:

•Prime: FICO score of 660 or higher
•Near-prime: FICO score of 620-659
•Sub-prime: FICO score of 619 or below

Our customers' demographics are, in many respects, near the national median but
may vary from national norms in terms of credit and repayment histories. Many of
our customers have experienced some level of prior financial difficulty or have
limited credit experience and require higher levels of servicing and support
from our branch network and central servicing operations.

The following table reflects our personal loans grouped into the categories
described above based on borrower FICO credit scores as of the most recently
refreshed date or as of the loan origination or purchase date:
(dollars in millions)       September 30, 2021       December 31, 2020

FICO scores *
660 or higher              $             4,896      $            4,653
620-659                                  5,172                   4,877
619 or below                             8,775                   8,554
Total                      $            18,843      $           18,084

* Due to the impact of COVID-19, FICO scores as of September 30, 2021 and
December 31, 2020 may have been affected by government stimulus packages, borrower assistance programs, and potentially inconsistent reporting to credit bureaus.

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                       Liquidity and Capital Resources


SOURCES AND USE OF FUNDS


We finance the majority of our operating liquidity and capital needs through a
combination of cash flows from operations, secured debt, unsecured debt,
borrowings from revolving conduit facilities, whole loan sales, and equity. We
may also utilize other sources in the future. As a holding company, all of the
funds generated from our operations are earned by our operating subsidiaries.
Our operating subsidiaries' primary cash needs relate to funding our lending
activities, our debt service obligations, our operating expenses, payment of
insurance claims, and expenditures relating to upgrading and monitoring our
technology platform, risk systems, and branch locations.

We have previously purchased portions of our unsecured indebtedness, and we may
elect to purchase additional portions of our unsecured indebtedness or
securitized borrowings in the future. Future purchases may be made through the
open market, privately negotiated transactions with third parties, or pursuant
to one or more tender or exchange offers, all of which are subject to terms,
prices, and consideration we may determine at our discretion.

During the nine months ended September 30, 2021, OMH generated net income of
$1.1 billion. OMH's net cash inflow from operating and investing activities
totaled $140 million for the nine months ended September 30, 2021. At September
30, 2021, our scheduled principal and interest payments for the remainder of
2021 on our existing debt (excluding securitizations) totaled $91 million. As of
September 30, 2021, we had $11.0 billion of unencumbered gross finance
receivables.

Based on our estimates and considering the risks and uncertainties of our plans,
we believe that we will have adequate liquidity to finance and operate our
businesses and repay our obligations as they become due for at least the next 24
months.

OMFC Unsecured Debt Issue and Repayment Notice

For information concerning the issuance and the repayment notice of the unsecured debt of OMFC, see Note 6 of the notes to the condensed consolidated financial statements included in this report.

Securitizations and loans on renewable pipe installations


During the nine months ended September 30, 2021, we completed one personal loan
securitization (OMFIT 2021-1, see "Securitized Borrowings" below), and redeemed
two personal loan securitizations (OMFIT 2017-1 and SLFT 2015-B). At September
30, 2021, we had $7.6 billion of gross finance receivables pledged as collateral
for our securitization transactions.

Subsequent to September 30, 2021, we issued $1.0 billion principal amount of
notes backed by personal loans ("ODART 2021-1"). ODART 2021-1 has a revolving
period of two years, during which no principal payments are required to be made.

During the nine months ended September 30, 2021, we entered into two new
revolving conduit facilities and terminated one revolving conduit facility. At
September 30, 2021, the borrowing capacity of our revolving conduit facilities
was $7.3 billion, and no amounts were drawn nor were any personal loans pledged
as collateral under these facilities.

See Notes 6 and 7 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information on our long-term debt, securitization transactions and revolving conduit facilities.

Redeemed shares


During the nine months ended September 30, 2021, OMH repurchased and held in
treasury 1,347,844 shares of its common stock through its stock repurchase
program for an aggregate total of $77 million, including commissions and fees.
To provide funding for the OMH stock repurchase, the OMFC Board of Directors
authorized dividend payments in the amount of $100 million.

Additionally, on August 3, 2021, OMH participated in the Concurrent Share
Buyback, in which we purchased 1,700,000 shares of OMH common stock for an
aggregate total of $99 million. The terms and conditions of the Concurrent Share
Buyback were reviewed and approved by a special committee of the OMH Board of
Directors, comprised of independent and disinterested directors of OMH. The
Concurrent Share Buyback was made pursuant to a new OMH board authorization and
did not reduce our availability under the stock repurchase program. To provide
funding for the Concurrent Share Buyback, the OMFC Board of Directors authorized
a dividend payment in the amount of $99 million. As of September 30, 2021, OMH
held a total of 3,047,844 shares of treasury stock. For additional information
regarding the shares repurchased, see Item 2. Unregistered Sales of Equity
Securities and Use of Proceeds of Part II included in this report.
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Cash dividend to ordinary shareholders of OMH

From September 30, 2021, the dividend declarations for the current year by OMH’s board of directors were as follows:

     Declaration Date                   Record Date                      Payment Date                  Dividend Per Share               Amount Paid
                                                                                                                                         (in millions)
February 8, 2021                 February 18, 2021                February 25, 2021                $             3.95    *           $          531
April 26, 2021                   May 6, 2021                      May 13, 2021                                   0.70                            94
July 21, 2021                    August 6, 2021                   August 13, 2021                                4.20    *                      555

Total                                                                                              $             8.85                $        1,180

* Our February 8, 2021 and July 21, 2021 dividend declarations included the minimum quarterly dividends of $ 0.45 per share and $ 0.70 per share, respectively.

To finance the dividend, the OMFC paid dividends of $ 1.2 billion at the OMH during the nine months ended September 30, 2021.

At 20 October 2021, OMH declared a dividend of $ 0.70 per share payable on
November 9, 2021 to registered holders of OMH ordinary shares at the close of business on November 2, 2021. To finance the OMH dividend, the OMFC Board of Directors authorized a dividend of a maximum amount of $ 92 million
payable on or after November 5, 2021.


While OMH intends to pay its minimum quarterly dividend, currently $0.70 per
share, for the foreseeable future, and announced its intention to evaluate
dividends above the minimum every first and third quarters, all subsequent
dividends will be reviewed and declared at the discretion of the board of
directors and will depend on many factors, including our financial condition,
earnings, cash flows, capital requirements, level of indebtedness, statutory and
contractual restrictions applicable to the payment of dividends, and other
considerations that the board of directors deems relevant. OMH's dividend
payments may change from time to time, and the board of directors may choose not
to continue to declare dividends in the future. See our "Dividend Policy" in
Part II - Item 5 included in our Annual Report for further information.

Total loan sale transactions


As of September 30, 2021, we have whole loan sale flow agreements, with
remaining terms ranging between one to two years, with third-party buyers in
which we agreed to sell a combined total of $180 million gross receivables per
quarter of newly originated unsecured personal loans along with any associated
accrued interest. Our first sale was executed in the first quarter of 2021.
During the three and nine months ended September 30, 2021, we sold $160 million
and $325 million of gross finance receivables, respectively. For further
information on the whole loan sale transactions, see Note 3 of the Notes to the
Condensed Consolidated Financial Statements included in this report.

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LIQUIDITY

OMH's Operating Activities

Net cash provided by operations of $1.6 billion for the nine months ended
September 30, 2021 reflected net income of $1.1 billion, the impact of non-cash
items, and an unfavorable change in working capital of $53 million. Net cash
provided by operations of $1.6 billion for the nine months ended September 30,
2020 reflected net income of $371 million, the impact of non-cash items, and an
unfavorable change in working capital of $108 million.

OMH investment activities


Net cash used for investing activities of $1.5 billion and $257 million for the
nine months ended September 30, 2021 and 2020, respectively, was primarily due
to net principal originations of finance receivables and purchases of
available-for-sale and other securities, partially offset by calls, sales, and
maturities of available-for-sale and other securities and proceeds from sales of
finance receivables.

OMH's Financing Activities

Net cash used for financing activities of $1.6 billion for the nine months ended
September 30, 2021 was primarily due to debt repayments, cash dividends paid,
and the cash paid to repurchase common stock during the period, partially offset
by the issuances of the OMFIT 2021-1 securitization, the Social Bond, and the
3.875% Senior Notes due 2028. Net cash used for financing activities of $563
million for the nine months ended September 30, 2020 was primarily due to debt
repayments, cash dividends paid, and the cash paid on the common stock
repurchased, partially offset by the issuances of the 8.875% Senior Notes due
2025, and the OMFIT 2020-1 and OMFIT 2020-2 securitizations during the period.

OMH treasury and investments


At September 30, 2021, we had $821 million of cash and cash equivalents, which
included $205 million of cash and cash equivalents held at our regulated
insurance subsidiaries or for other operating activities that is unavailable for
general corporate purposes.

At September 30, 2021, we had $2.0 billion of investment securities, which are
all held as part of our insurance operations and are unavailable for general
corporate purposes.

Liquidity risks and strategies


OMFC's credit ratings are non-investment grade, which has a significant impact
on our cost and access to capital. This, in turn, can negatively affect our
ability to manage our liquidity and our ability or cost to refinance our
indebtedness. There are numerous risks to our financial results, liquidity,
capital raising, and debt refinancing plans, some of which may not be quantified
in our current liquidity forecasts. These risks are further described in our
"Liquidity and Capital Resources" of Management's Discussion and Analysis of
Financial Condition and Results of Operations in Part II - Item 7 included in
our Annual Report.

The principal factors that could decrease our liquidity are customer
delinquencies and defaults, a decline in customer prepayments, and a prolonged
inability to adequately access capital market funding. We intend to support our
liquidity position by utilizing strategies that are further described in our
"Liquidity and Capital Resources" of Management's Discussion and Analysis of
Financial Condition and Results of Operations in Part II - Item 7 included in
our Annual Report.

However, it is possible that the actual outcome of one or more of our plans may differ materially from what we expected, or that one or more of our material judgments or estimates turn out to be materially incorrect.

OUR INSURANCE SUBSIDIARIES


Our insurance subsidiaries are subject to state regulations that limit their
ability to pay dividends. AHL and Triton did not pay any dividends during the
nine months ended September 30, 2021 and 2020. See Note 11 of the Notes to the
Consolidated Financial Statements in Part II - Item 8 included in our Annual
Report for further information on these state restrictions and the dividends
paid by our insurance subsidiaries in 2020.
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OUR DEBT AGREEMENTS


The debt agreements to which OMFC and its subsidiaries are a party include
customary terms and conditions, including covenants and representations and
warranties. See Note 9 of the Notes to the Consolidated Financial Statements in
Part II - Item 8 included in our Annual Report for more information on the
restrictive covenants under OMFC's debt agreements, as well as the guarantees of
OMFC's long-term debt.

Securitized Borrowings
We execute private securitizations under Rule 144A of the Securities Act of
1933. As of September 30, 2021, our structured financings consisted of the
following:
                                                                                                                 Current
                                                                Initial                  Current                Collateral              Current               Original
                                         Issue Amount          Collateral             Note Amounts               Balance            Weighted Average         Revolving
(dollars in millions)                        (a)                Balance              Outstanding (a)               (b)               Interest Rate             Period

SLFT 2017-A                              $     652          $         685          $            201          $         261                   3.62  %              3 years
OMFIT 2015-3                                   293                    329                       107                    130                   5.23  %              5 years
OMFIT 2016-3                                   350                    397                       212                    290                   4.58  %              5 years
OMFIT 2018-1                                   632                    650                       381                    423                   3.78  %              3 years
OMFIT 2018-2                                   368                    381                       350                    400                   3.87  %              5 years
OMFIT 2019-1                                   632                    654                       356                    402                   4.01  %              2 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                       821                    958                   4.12  %              2 years
OMFIT 2020-2                                 1,000                  1,053                     1,000                  1,053                   2.03  %              5 years
OMFIT 2021-1                                   850                    904                       850                    904                   1.57  %              5 years
ODART 2018-1                                   947                    964                       327                    354                   3.79  %              2 years
ODART 2019-1                                   737                    750                       700                    750                   3.79  %              5 years
Total securitizations                    $   8,971          $       9,564          $          6,955          $       7,812


(a) Issue Amount includes the retained interest amounts as applicable and the
Current Note Amounts Outstanding balances reflect pay-downs subsequent to note
issuance and exclude retained interest amounts.
(b) Inclusive of in-process replenishments of collateral for securitized
borrowings in a revolving status as of September 30, 2021.

See “Liquidity and Capital Resources – Sources and Uses of Funds – Securitizations and Borrowings from Revolving Conduit Facilities” above for information on the securitization transaction entered into thereafter. September 30, 2021.


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Revolving Conduit Facilities
In addition to the structured financings, we have access to 14 revolving conduit
facilities with a total borrowing capacity of $7.3 billion as of September 30,
2021:
                                                                            Amount
(dollars in millions)                         Advance Maximum Balance       Drawn

OneMain Financial Auto Funding I, LLC        $                    850      $    -
OneMain Financial Funding VII, LLC                                850       

OneMain Financial Funding IX, LLC                                 850           -
Seine River Funding, LLC                                          650           -
Mystic River Funding, LLC                                         600           -
Chicago River Funding, LLC                                        500           -
Columbia River Funding, LLC                                       500           -
Hudson River Funding, LLC                                         500           -
OneMain Financial Funding VIII, LLC                               500           -
Thayer Brook Funding, LLC                                         500           -
Hubbard River Funding, LLC                                        250           -
New River Funding Trust                                           250           -
River Thames Funding, LLC                                         250           -
St. Lawrence River Funding, LLC                                   250           -
Total                                        $                  7,300      $    -



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                         Off-Balance Sheet Arrangements


We have no material off-balance sheet arrangements as defined by SECOND rules, and we had no material off-balance sheet exposure to losses associated with non-consolidated VIEs as of September 30, 2021 Where December 31, 2020.

                   Critical Accounting Policies and Estimates



We describe our significant accounting policies used in the preparation of our
consolidated financial statements in Note 3 of the Notes to the Consolidated
Financial Statements in Part II - Item 8 included in our Annual Report. We
consider the following policies to be our most critical accounting policies
because they involve critical accounting estimates and a significant degree of
management judgment:

•allowance for finance receivable losses; and
•TDR finance receivables.

There have been no material changes to our critical accounting policies or to
our methodologies for deriving critical accounting estimates during the nine
months ended September 30, 2021.

                       Recent Accounting Pronouncements



See note 2 of the notes to the condensed consolidated financial statements included in this report for a discussion of recently published accounting pronouncements.


                                  Seasonality



Our personal loan volume is generally highest during the second and fourth
quarters of the year, primarily due to marketing efforts and seasonality of
demand. Demand for our personal loans is usually lower in January and February
after the holiday season and as a result of tax refunds. Delinquencies on our
personal loans are generally lower in the first and second quarters and tend to
rise throughout the remainder of the year. These seasonal trends contribute to
fluctuations in our operating results and cash needs throughout the year. The
seasonality impact on our delinquency trend continues to be affected by the
COVID-19 pandemic and mitigating efforts from government stimulus measures.

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