LOANS

9 Months Ended

Sep. 30, 2025

The Company’s consumer loans are made to individuals, in relatively small amounts for relatively short period of time. First and second mortgage loans on real estate were historically made in larger amounts and for longer periods of time. The Company also purchases sales finance contracts from various dealers. All loans and sales finance contracts are held for investment.

Loan Renewals

Loan renewals are accounted for in accordance with the applicable guidance in ASC Topic 310-20, “Nonrefundable Fees and Other Costs”. Loan renewals are offered to existing customers and allows customers to borrow additional funds. In evaluating a loan for renewal, in addition to standard underwriting requirements, the Company will take into consideration the customer’s prior payment performance, which we believe to be an indicator of the customer’s future credit performance. If the terms of the loan renewal are as favorable to the Company as the terms for comparable loans to other customers with similar collection risks who are not renewing a loan, the renewal is accounted for as a new loan. The criteria is met if the new loan's effective yield is at least equal to the effective yield for such comparable loans and the modification of the original loan is more than minor. A modification of a loan is more than minor if the present value of the cash flows under the terms of the renewal is at least 10 percent different from the present value of the remaining cash flows under the terms of the original loan. Accordingly, when a renewal is generated, the original loan(s) are extinguished along with the associated unearned finance charges and a new loan is originated. Substantially all renewals include a non-cash component that represents the exchange of the original principal balance for the new principal balance and a cash component for the net proceeds distributed to the customer for the additional amount borrowed. The cash component is presented as outflows from investing activities and the non-cash component is presented as a non-cash investing activity.

Cash, unearned finance charges, origination fees, discounts, premiums, deferred fees, and, in the instance of a loan renewal, the net payoff of the of the renewed loan are included in the loan origination amount. The cash component of the loan origination is included in the Condensed Consolidated Statements of Cash Flows in the Cash Flows from Investing Activities as Loans Originated or Purchased.

Reconciliation of Gross Loans Originated / Acquired to Loans Originated or Purchased in Condensed Consolidated Statements of Cash Flows (in thousands):


		Nine Months Ended September 30,
		2025		2024

Loans originated or purchased:
	Originated	$	1,159,595	$	915,660
	Purchased	8,892		8,705
Less Non-Cash Reconciling items:
	Other Consumer renewed loans (live check and premier)	282,595		226,821
	Other non-cash activity: unearned finance charges, origination fees, discounts, premiums, and deferred fees	270,821		265,482
Loans originated or purchased per Condensed Consolidated Statements of Cash Flows:		$	615,071	$	432,062

Description of Loans

Loans outstanding on the Condensed Consolidated Statements of Financial Position include principal, origination fees, premiums, discounts, and in the case of interest-bearing loans, deferred fees, other fees receivable, and accrued interest receivable.

Loan performance reporting is based on a loan’s gross balance that includes principal plus origination fees for interest-bearing loans and the total of payments for loans with pre-computed interest.

The allowance for credit losses is based on the underlying financial instrument’s amortized cost basis, with the allowance representing the portion of amortized cost basis the Company does not expect to recover due to credit losses. The following are included in the Company’s amortized cost basis:

•Pre-computed loans: Principal Balance, net of unearned finance charges and unearned insurance1.

•Interest-bearing loans: Principal Balance, net of unearned insurance1.

1 The state of Louisiana classifies certain insurance products as non-refundable. Non-refundable products are not netted against the principal balance for calculation of the amortized cost basis.

Gross loans outstanding as of September 30, 2025 by loan class and origination year (in thousands):


Loan Class	2025		2024		2023		2022		2021		Prior		Total
Direct Cash Loans: Live Check Loans	$	175,618	$	41,048	$	4,770	$	807	$	116	$	32	$	222,391
Direct Cash Loans: Premier Loans	—		1,452		1,338		3,921		1,207		237		8,155
Direct Cash Loans: Other Consumer Loans	656,358		239,018		61,969		18,420		6,602		1,733		984,100
Real Estate Loans	—		2,249		—		976		7,408		8,867		19,500
Sales Finance Contracts	39,032		39,477		29,777		13,952		4,349		714		127,301
Total	$	871,008	$	323,244	$	97,854	$	38,076	$	19,682	$	11,583	$	1,361,447

Gross loans outstanding as of December 31, 2024 by loan class and origination year (in thousands):


Loan Class	2024		2023		2022		2021		2020		Prior		Total
Direct Cash Loans: Live Check Loans	$	176,859	$	18,932	$	3,081	$	425	$	55	$	20	$	199,372
Direct Cash Loans: Premier Loans	3,398		3,786		9,563		3,320		492		161		20,720
Direct Cash Loans: Other Consumer Loans	645,179		150,608		40,634		14,853		2,623		1,312		855,209
Real Estate Loans	2,249		4		1,035		8,486		3,607		7,364		22,745
Sales Finance Contracts	63,232		53,598		24,938		9,232		2,361		278		153,639
Total	$	890,917	$	226,928	$	79,251	$	36,316	$	9,138	$	9,135	$	1,251,685

The Company’s principal balances on non-accrual loans by loan class are as follows (in thousands):


Loan Class	September 30, 2025		December 31, 2024

Direct Cash Loans: Live Check Loans	$	14,175	$	7,815
Direct Cash Loans: Premier Loans	460		1,170
Direct Cash Loans: Other Consumer Loans	43,372		38,895
Real Estate Loans	1,415		1,464
Sales Finance Contracts	5,227		6,741
Total	$	64,649	$	56,085

Age analysis of principal balances on past due loans, segregated by loan class (in thousands):


	September 30, 2025
Loan Class	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due Loans

Direct Cash Loans: Live Check Loans	$	7,569	$	5,511	$	8,664	$	21,744
Direct Cash Loans: Premier Loans	239		159		300		698
Direct Cash Loans: Other Consumer Loans	26,288		15,843		27,529		69,660
Real Estate Loans	803		376		1,039		2,218
Sales Finance Contracts	3,658		1,662		3,565		8,885
Total	$	38,557	$	23,551	$	41,097	$	103,205


	December 31, 2024
Loan Class	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due Loans

Direct Cash Loans: Live Check Loans	$	4,812	$	3,794	$	5,180	$	13,786
Direct Cash Loans: Premier Loans	768		416		759		1,943
Direct Cash Loans: Other Consumer Loans	31,154		17,363		25,229		73,746
Real Estate Loans	1,213		299		1,308		2,820
Sales Finance Contracts	6,140		3,298		3,801		13,239
Total	$	44,087	$	25,170	$	36,277	$	105,534

While aging analysis is a primary credit quality indicator, we also consider loans in non-accrual status, loan modifications to borrowers experiencing financial difficulty, the ratio of bankrupt accounts to the total loan portfolio, and economic factors in evaluating whether any qualitative adjustments were necessary to the allowance for credit losses.

The ratio of bankrupt accounts to total principal loan balances outstanding was 1.39% at September 30, 2025, compared to 1.38% at December 31, 2024.

The following table presents the principal balance in each segment in the portfolio as of September 30, 2025 based on payment performance by year of origination (in thousands):


Payment Performance by Origination Year
	2025(1)		2024		2023		2022		2020		Prior		Total Principal Balance
Direct Cash Loans: Live Check Loans
Performing	$	166,189	$	36,342	$	4,421	$	719	$	84	$	30	$	207,785
Nonperforming	9,429		4,706		349		88		32		2		14,606
	$	175,618	$	41,048	$	4,770	$	807	$	116	$	32	$	222,391
Direct Cash Loans: Premier Loans
Performing	$	—	$	1,383	$	1,284	$	3,694	$	1,101	$	216	$	7,678
Nonperforming	—		69		54		227		106		21		477
	$	—	$	1,452	$	1,338	$	3,921	$	1,207	$	237	$	8,155
Direct Cash Loans: Other Consumer Loans
Performing	$	636,146	$	222,868	$	57,167	$	16,625	$	5,731	$	1,397	$	939,934
Nonperforming	20,212		16,150		4,802		1,795		871		336		44,166
	$	656,358	$	239,018	$	61,969	$	18,420	$	6,602	$	1,733	$	984,100
Real Estate Loans:
Performing	$	—	$	2,249	$	—	$	890	$	6,773	$	8,060	$	17,972
Nonperforming	—		—		—		86		635		807		1,528
	$	—	$	2,249	$	—	$	976	$	7,408	$	8,867	$	19,500
Sales Finance Contracts:
Performing	$	38,354	$	37,903	$	28,234	$	13,040	$	3,890	$	593	$	122,014
Nonperforming	678		1,574		1,543		912		459		121		5,287
	$	39,032	$	39,477	$	29,777	$	13,952	$	4,349	$	714	$	127,301

(1)Includes loans originated during the nine months ended September 30, 2025.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company allows refinancing of delinquent loans on a case-by-case basis for those who satisfy certain eligibility requirements. The eligible customers can include those experiencing temporary hardships, lawsuits, or those who have declared bankruptcy. In most cases, loans eligible for restructuring are between 90 and 180 days past due. The Company does not allow the amount of the new loan to exceed the original amount of the existing loan. Refinancing also provides a resolution to temporary financial setbacks for these borrowers and sustain their credit rating.

Legal fees and other direct costs incurred by the Company during a restructuring are expensed when incurred. The effective interest rate for restructured loans is based on the original contractual rate. Modified loans are adjusted to be recorded at the value of expected cash flows to be received in the future. Modifications that lower the principal balance experience a direct charge-off for the difference of the original and modified principal amount. Substantially all of the Company's restructurings relate to term and interest rate concessions. The Company only reduces the principal balance of a loan in the event of a court order.

The information relating to modifications to borrowers experiencing financial difficulty for the period indicated are as follows (in thousands, except for %):


	Three Months Ended September 30, 2025

Loan Class	Interest Rate Reduction				Term Extension				Principal Forgiveness				Combination - Term Extension and Principal Forgiveness				Combination - Term Extension and Interest Rate Reduction
Direct Cash Loans: Live Check Loans	$	306	0.5	%	$	644	1.2	%	$	4	—	%	$	—	—	%	$	264	0.5	%
Direct Cash Loans: Premier Loans	15		0.7	%	52		2.5	%	3		0.2	%	3		0.2	%	15		0.7	%
Direct Cash Loans: Other Consumer Loans	11,041		4.5	%	13,812		5.6	%	349		0.1	%	—		—	%	8,521		3.5	%
Real Estate Loans	—		—	%	—		—	%	—		—	%	—		—	%	—		—	%
Sales Finance Contracts	233		0.7	%	375		1.2	%	78		0.2	%	—		—	%	223		0.7	%
Total	$	11,595	3.4	%	$	14,883	4.4	%	$	434	0.1	%	$	3	—	%	$	9,023	2.7	%


	Three Months Ended September 30, 2024

Loan Class	Interest Rate Reduction				Term Extension				Principal Forgiveness				Combination - Term Extension and Principal Forgiveness				Combination - Term Extension and Interest Rate Reduction
Direct Cash Loans: Live Check Loans	$	1,106	3.1	%	$	354	1.0	%	$	451	1.2	%	$	531	1.5	%	$	392	1.1	%
Direct Cash Loans: Premier Loans	143		2.1	%	161		2.3	%	70		1.0	%	364		5.2	%	188		2.7	%
Direct Cash Loans: Other Consumer Loans	4,545		2.2	%	5,064		2.5	%	2,774		1.3	%	8,906		4.3	%	5,623		2.7	%
Real Estate Loans	—		—	%	—		—	%	4		0.1	%	—		—	%	—		—	%
Sales Finance Contracts	209		0.5	%	200		0.5	%	564		1.4	%	1,620		4.0	%	172		0.4	%
Total	$	6,003	2.0	%	$	5,779	2.0	%	$	3,863	1.3	%	$	11,421	3.9	%	$	6,375	2.2	%


	Nine Months Ended September 30, 2025

Loan Class	Interest Rate Reduction				Term Extension				Principal Forgiveness				Combination - Term Extension and Principal Forgiveness				Combination - Term Extension and Interest Rate Reduction
Direct Cash Loans: Live Check Loans	$	776	0.5	%	$	2,206	1.3	%	$	52	—	%	$	1	—	%	$	571	0.3	%
Direct Cash Loans: Premier Loans	108		1.8	%	309		5.1	%	13		0.2	%	3		0.1	%	67		1.1	%
Direct Cash Loans: Other Consumer Loans	22,505		3.0	%	34,842		4.7	%	1,348		0.2	%	27		—	%	16,437		2.2	%
Real Estate Loans	—		—	%	—		—	%	—		—	%	—		—	%	—		—	%
Sales Finance Contracts	1,277		1.3	%	1,920		2.0	%	275		0.3	%	—		—	%	863		0.9	%
Total	$	24,666	2.4	%	$	39,277	3.9	%	$	1,688	0.2	%	$	31	—	%	$	17,938	1.8	%


	Nine Months Ended September 30, 2024

Loan Class	Interest Rate Reduction				Term Extension				Principal Forgiveness				Combination - Term Extension and Principal Forgiveness				Combination - Term Extension and Interest Rate Reduction
Direct Cash Loans: Live Check Loans	$	3,749	3.5	%	$	1,298	1.2	%	$	1,665	1.5	%	$	1,541	1.4	%	$	1,118	1.0	%
Direct Cash Loans: Premier Loans	445		2.1	%	613		2.9	%	318		1.5	%	791		3.8	%	575		2.7	%
Direct Cash Loans: Other Consumer Loans	12,390		2.0	%	13,380		2.2	%	8,038		1.3	%	23,390		3.8	%	14,645		2.4	%
Real Estate Loans	104		0.6	%	27		0.2	%	4		—	%	—		—	%	9		0.1	%
Sales Finance Contracts	666		0.5	%	699		0.6	%	1,399		1.1	%	4,472		3.7	%	423		0.3	%
Total	$	17,354	2.0	%	$	16,017	1.8	%	$	11,424	1.3	%	$	30,194	3.4	%	$	16,770	1.9	%

The financial effects of the modifications to borrowers experiencing financial difficulty for the period indicated are:


As of and for the three months ended September 30, 2025
Loan Modification	Loan Class	Financial Effect
Principal Forgiveness	Live Check Loans	Reduced the gross balance of the loans < $0.1 million
	Premier Loans	Reduced the gross balance of the loans < $0.1 million
	Other Consumer Loans	Reduced the gross balance of the loans $0.3 million
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Reduced the gross balance of the loans < $0.1 million
Interest Rate Reduction	Live Check Loans	Reduced the weighted-average contractual interest rate from 29.0% to 21.9%
	Premier Loans	No Financial Effect
	Other Consumer Loans	Reduced the weighted-average contractual interest rate from 29.8% to 21.7%
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Reduced the weighted-average contractual interest rate from 22.6% to 18.2%
Term Extension	Live Check Loans	Added a weighted average 11 months to the term
	Premier Loans	Added a weighted average 18 months to the term
	Other Consumer Loans	Added a weighted average 14 months to the term
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Added a weighted average 15 months to the term


As of and for the three months ended September 30, 2024
Loan Modification	Loan Class	Financial Effect
Principal Forgiveness	Live Check Loans	Reduced the gross balance of the loans $0.5 million
	Premier Loans	Reduced the gross balance of the loans < $0.1 million
	Other Consumer Loans	Reduced the gross balance of the loans $2.8 million
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Reduced the gross balance of the loans $0.6 million
Interest Rate Reduction	Live Check Loans	Reduced the weighted-average contractual interest rate from 27.5% to 16.5%
	Premier Loans	Reduced the weighted-average contractual interest rate from 20.4% to 15.5%
	Other Consumer Loans	Reduced the weighted-average contractual interest rate from 28.9% to 18.8%
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Reduced the weighted-average contractual interest rate from 22.5% to 14.9%
Term Extension	Live Check Loans	Added a weighted average 10 months to the term
	Premier Loans	Added a weighted average 20 months to the term
	Other Consumer Loans	Added a weighted average 16 months to the term
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Added a weighted average 19 months to the term


As of and for the nine months ended September 30, 2025
Loan Modification	Loan Class	Financial Effect
Principal Forgiveness	Live Check Loans	Reduced the gross balance of the loans < $0.1 million
	Premier Loans	Reduced the gross balance of the loans < $0.1 million
	Other Consumer Loans	Reduced the gross balance of the loans $0.8 million
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Reduced the gross balance of the loans $0.1 million
Interest Rate Reduction	Live Check Loans	Reduced the weighted-average contractual interest rate from 28.2% to 19.1%
	Premier Loans	Reduced the weighted-average contractual interest rate from 20.8% to 15.0%
	Other Consumer Loans	Reduced the weighted-average contractual interest rate from 29.6% to 20.5%
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Reduced the weighted-average contractual interest rate from 21.1% to 12.5%
Term Extension	Live Check Loans	Added a weighted average 7 months to the term
	Premier Loans	Added a weighted average 10 months to the term
	Other Consumer Loans	Added a weighted average 11 months to the term
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Added a weighted average 15 months to the term


As of and for the nine months ended September 30, 2024
Loan Modification	Loan Class	Financial Effect
Principal Forgiveness	Live Check Loans	Reduced the gross balance of the loans $1.7 million
	Premier Loans	Reduced the gross balance of the loans $0.3 million
	Other Consumer Loans	Reduced the gross balance of the loans $8.0 million
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Reduced the gross balance of the loans $1.4 million
Interest Rate Reduction	Live Check Loans	Reduced the weighted-average contractual interest rate from 27.6% to 16.4%
	Premier Loans	Reduced the weighted-average contractual interest rate from 20.2% to 15.3%
	Other Consumer Loans	Reduced the weighted-average contractual interest rate from 29.0% to 18.8%
	Real Estate Loans	Reduced the weighted-average contractual interest rate from 19.3% to 8.5%
	Sales Finance Contracts	Reduced the weighted-average contractual interest rate from 22.6% to 15.1%
Term Extension	Live Check Loans	Added a weighted average 12 months to the term
	Premier Loans	Added a weighted average 21 months to the term
	Other Consumer Loans	Added a weighted average 16 months to the term
	Real Estate Loans	No Financial Effect
	Sales Finance Contracts	Added a weighted average 19 months to the term

Aging of loans modified for borrowers experiencing financial difficulty in the past 12 months are as follows (in thousands):


	September 30, 2025

Loan Class	Current		30 - 89 Past Due		90+ Past Due		Total

Direct Cash Loans: Live Check Loans	$	1,730	$	417	$	560	$	2,707
Direct Cash Loans: Premier Loans	369		35		79		483
Direct Cash Loans: Other Consumer Loans	35,303		4,576		3,702		43,581
Real Estate Loans	—		—		—		—
Sales Finance Contracts	2,112		436		469		3,017
Total	$	39,514	$	5,464	$	4,810	$	49,788


	September 30, 2024

Loan Class	Current		30 - 89 Past Due		90+ Past Due		Total

Direct Cash Loans: Live Check Loans	$	12,127	$	472	$	423	$	13,022
Direct Cash Loans: Premier Loans	4,734		357		158		5,249
Direct Cash Loans: Other Consumer Loans	72,747		6,709		2,976		82,432
Real Estate Loans	262		29		24		315
Sales Finance Contracts	9,262		734		373		10,369
Total	$	99,132	$	8,301	$	3,954	$	111,387

Loans modified for borrowers experiencing financial difficulty during the prior 12 months that subsequently charged off (in thousands):


	Three Months Ended September 30, 2025
Loan Class	Interest Rate Reduction		Term Extension		Principal Forgiveness		Combination - Term Extension and Principal Forgiveness		Combination - Term Extension and Interest Rate Reduction
Direct Cash Loans: Live Check Loans	$	36	$	46	$	18	$	—	$	4
Direct Cash Loans: Premier Loans	—		3		4		—		—
Direct Cash Loans: Other Consumer Loans	153		488		190		—		33
Real Estate Loans	—		—		—		—		—
Sales Finance Contracts	18		55		13		—		—
Total	$	207	$	592	$	225	$	—	$	37


	Three Months Ended September 30, 2024
Loan Class	Interest Rate Reduction		Term Extension		Principal Forgiveness		Combination - Term Extension and Principal Forgiveness		Combination - Term Extension and Interest Rate Reduction
Direct Cash Loans: Live Check Loans	$	584	$	106	$	298	$	129	$	109
Direct Cash Loans: Premier Loans	35		38		22		42		42
Direct Cash Loans: Other Consumer Loans	1,405		532		1,098		1,193		960
Real Estate Loans	—		—		—		—		—
Sales Finance Contracts	108		54		99		285		42
Total	$	2,132	$	730	$	1,517	$	1,649	$	1,153


	Nine Months Ended September 30, 2025
Loan Class	Interest Rate Reduction		Term Extension		Principal Forgiveness		Combination- Term Extension and Principal Forgiveness		Combination - Term Extension and Interest Rate Reduction
Direct Cash Loans: Live Check Loans	$	338	$	125	$	74	$	151	$	83
Direct Cash Loans: Premier Loans	13		42		23		61		20
Direct Cash Loans: Other Consumer Loans	1,110		1,370		671		1,416		873
Real Estate Loans	—		—		—		—		—
Sales Finance Contracts	116		98		80		162		37
Total	$	1,577	$	1,635	$	848	$	1,790	$	1,013


	Nine Months Ended September 30, 2024
Loan Class	Interest Rate Reduction		Term Extension		Principal Forgiveness		Combination - Term Extension and Principal Forgiveness		Combination - Term Extension and Interest Rate Reduction
Direct Cash Loans: Live Check Loans	$	2,448	$	223	$	617	$	244	$	252
Direct Cash Loans: Premier Loans	239		63		55		101		140
Direct Cash Loans: Other Consumer Loans	4,996		1,155		2,202		2,388		2,014
Real Estate Loans	—		—		—		—		—
Sales Finance Contracts	341		87		190		493		109
Total	$	8,025	$	1,528	$	3,064	$	3,227	$	2,515

Allowance for Credit Losses

The Company uses a Probability of Default (“PD”) / Loss Given Default (“LGD”) methodology to estimate the allowance for credit losses, in which the estimated loss is equal to the product of PD and LGD. We utilized this same technique for the current and prior reporting periods. The Company engaged a major rating service provider to assist with estimating the instances of loss (PDs) and the average severity of losses (LGDs) using the characteristics of our loan portfolio, along with incorporating a reasonable and supportable forecast which is utilized to support the adjustments to historical loss experience of loans with similar credit risk. Key segmentation in the calculation is origination vintage, remaining contractual term, risk score and state of

origination. The allowance for credit loss methodology produces a variety of alternative economic scenarios. The Company considers how macroeconomic and/or other factors might impact expected credit losses over the remaining maturity of the portfolio and determine which scenario(s) and specific scenario weights are applied within the estimation. The allowance for credit losses recorded in the Condensed Consolidated Statements of Financial Position reflects the Company's best estimate of expected credit losses.

The Company classifies delinquent accounts according to the number of installments past due. Accounts are classified in delinquency categories of 30-59 days, 60-89 days, or 90 or more days past due. When a loan meets the Company’s charge-off policy of 180 days past due, the loan is charged off. There are limited exception situations where a loan may be more than 180 days past due and not charged off - specifically pending insurance transactions and bankruptcy status. The amount charged off is the unpaid balance less the unearned finance charges and the unearned insurance premiums, if applicable.

Management ceases accruing finance charges on loans that are on non-accrual, generally when two payments remain unpaid on precomputed loans or when the interest paid-to-date on an interest-bearing loan is 60 days or more past due. Finance charges are only recognized to the extent there is a loan payment received or when the account qualifies for return to accrual status. Accounts qualify for return to accrual status when delinquency on a precomputed loan is less than two payments and when the interest paid-to-date on an interest-bearing loan is less than 60 days past due. There were no loans classified as non-accrual still accruing interest at September 30, 2025 or December 31, 2024.

The allowance for credit losses increased by $2.1 million to $75.5 million as of September 30, 2025, compared to $73.4 million as of December 31, 2024.

Management believes that the allowance for credit losses, as calculated in accordance with the Company’s current expected credit loss (“CECL”) methodology, is appropriate to cover expected credit losses on loans at September 30, 2025 and December 31, 2024. However, because the allowance for credit losses is based on estimates, there can be no assurance that the ultimate charge-off amount will match such estimates. Management may determine it is appropriate to increase or decrease the allowance for expected credit losses in future periods, or actual losses in any period, either of which events could have a material impact on our results of operations in the future.

Gross charge offs by origination year are as follows (in thousands):


	Three Months Ended September 30, 2025
	2025		2024		2023		2022		2021		Prior		Total
Direct Cash Loans: Live Check Loans	$	2,702	$	5,381	$	387	$	114	$	29	$	11	8,624
Direct Cash Loans: Premier Loans	—		63		73		182		78		19		415
Direct Cash Loans: Other Consumer Loans	3,915		12,053		2,615		944		403		209		20,139
Real Estate Loans	—		—		—		—		7		—		7
Sales Finance Contracts	95		657		693		387		156		57		2,045
Total	$	6,712	$	18,154	$	3,768	$	1,627	$	673	$	296	$	31,230


	Three Months Ended September 30, 2024
	2024		2023		2022		2021		2020		Prior		Total
Direct Cash Loans: Live Check Loans	$	2,543	$	3,352	$	479	$	85	$	18	$	14	$	6,491
Direct Cash Loans: Premier Loans	26		108		404		208		43		12		801
Direct Cash Loans: Other Consumer Loans	3,812		10,103		2,500		1,067		161		142		17,785
Real Estate Loans	—		—		—		—		—		1		1
Sales Finance Contracts	227		1,097		778		423		140		23		2,688
Total	$	6,608	$	14,660	$	4,161	$	1,783	$	362	$	192	$	27,766


	Nine Months Ended September 30, 2025
	2025		2024		2023		2022		2021		Prior		Total
Direct Cash Loans: Live Check Loans	$	2,798	$	21,431	$	2,745	$	471	$	92	$	68	27,605
Direct Cash Loans: Premier Loans	—		173		239		661		352		98		1,523
Direct Cash Loans: Other Consumer Loans	4,038		37,711		12,924		3,863		1,622		760		60,918
Real Estate Loans	—		12		—		—		7		—		19
Sales Finance Contracts	95		2,422		2,800		1,759		695		278		8,049
Total	$	6,931	$	61,749	$	18,708	$	6,754	$	2,768	$	1,204	$	98,114


	Nine Months Ended September 30, 2024
	2024		2023		2022		2021		2020		Prior		Total
Direct Cash Loans: Live Check Loans	$	2,498	$	14,845	$	2,619	$	341	$	58	$	47	20,408
Direct Cash Loans: Premier Loans	26		378		1,799		776		135		43		3,157
Direct Cash Loans: Other Consumer Loans	3,964		31,558		11,166		3,603		718		628		51,637
Real Estate Loans	—		—		—		—		3		1		4
Sales Finance Contracts	238		3,186		2,833		1,397		654		114		8,422
Total	$	6,726	$	49,967	$	18,417	$	6,117	$	1,568	$	833	$	83,628

The following table provides additional information on our allowance for credit losses based on a collective evaluation in accordance with ASC Topic 326, “Financial Instruments - Credit Losses” (in thousands):


	Three Months Ended September 30, 2025
	Direct Cash: Live Check Loans		Direct Cash: Premier Loans		Direct Cash: Other Consumer Loans		Real Estate Loans		Sales Finance Contracts		Total
Allowance for Credit Losses:
Ending Balance 6/30/2025	$	10,833	$	457	$	53,372	$	1,442	$	7,601	$	73,705
Provision for Credit Losses	7,141		(34)		14,119		(97)		853		$	21,982
Charge-offs	(8,624)		(415)		(20,139)		(7)		(2,045)		$	(31,230)
Recoveries	1,796		303		8,318		1		614		$	11,032
Ending Balance 9/30/2025	$	11,146	$	311	$	55,670	$	1,339	$	7,023	$	75,489


	Three Months Ended September 30, 2024
	Direct Cash: Live Check Loans		Direct Cash: Premier Loans		Direct Cash: Other Consumer Loans		Real Estate Loans		Sales Finance Contracts		Total
Allowance for Credit Losses:
Ending Balance 6/30/2024	$	9,162	$	1,476	$	49,133	$	1,921	$	9,110	$	70,802
Provision for Credit Losses	5,320		56		13,341		(87)		1,837		20,467
Charge-offs	(6,491)		(801)		(17,785)		(1)		(2,688)		(27,766)
Recoveries	1,570		437		5,636		1		589		8,233
Ending Balance 9/30/2024	$	9,561	$	1,168	$	50,325	$	1,834	$	8,848	$	71,736


	Nine Months Ended September 30, 2025
	Direct Cash: Live Checks		Direct Cash: Premier Loans		Direct Cash: Other Consumer Loans		Real Estate Loans		Sales Finance Contracts		Total
Allowance for Credit Losses:
Balance as of 12/31/2024	$	11,571	$	857	$	50,943	$	1,616	$	8,379	$	73,366
Provision for Credit Losses	22,373		(43)		47,840		(261)		4,695		$	74,604
Charge-offs	(27,605)		(1,523)		(60,918)		(19)		(8,049)		$	(98,114)
Recoveries	4,807		1,020		17,805		3		1,998		$	25,633
Ending Balance 9/30/2025	$	11,146	$	311	$	55,670	$	1,339	$	7,023	$	75,489


	Nine Months Ended September 30, 2024
	Direct Cash: Live Checks		Direct Cash: Premier Loans		Direct Cash: Other Consumer Loans		Real Estate Loans		Sales Finance Contracts		Total
Allowance for Credit Losses:
Balance as of 12/31/2023	$	9,832	$	2,510	$	47,282	$	2,488	$	9,250	$	71,362
Provision for Credit Losses	15,268		563		39,874		(655)		6,209		61,259
Charge-offs	(20,408)		(3,157)		(51,637)		(4)		(8,422)		(83,628)
Recoveries	4,869		1,252		14,806		5		1,811		22,743
Ending Balance 9/30/2024	$	9,561	$	1,168	$	50,325	$	1,834	$	8,848	$	71,736

1st FRANKLIN FINANCIAL CORP 10-Q