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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☑    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended March 31, 2023

OR

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to

Commission file number
001-36129 (OneMain Holdings, Inc.)
001-06155 (OneMain Finance Corporation)

ONEMAIN HOLDINGS, INC.
ONEMAIN FINANCE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware (OneMain Holdings, Inc.)
 27-3379612
Indiana (OneMain Finance Corporation)
 35-0416090
(State of incorporation) (I.R.S. Employer Identification No.)
601 N.W. Second Street, Evansville, IN 47708
(Address of principal executive offices) (Zip code)

(812) 424-8031
(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
OneMain Holdings, Inc.:
Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, par value $0.01 per share OMF New York Stock Exchange
OneMain Finance Corporation: None



Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
OneMain Holdings, Inc.                     Yes ☑ No ☐
OneMain Finance Corporation                     Yes ☑ No ☐


Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
OneMain Holdings, Inc.                     Yes ☑ No ☐
OneMain Finance Corporation                     Yes ☑ No ☐




Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
OneMain Holdings, Inc.:
Large accelerated filer ☑ Accelerated filer
☐
 Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐
OneMain Finance Corporation:
Large accelerated filer
☐
Accelerated filer
☐
 Non-accelerated filer ☑
Smaller reporting company
 ☐
Emerging growth company
☐


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
OneMain Holdings, Inc.                  ☐
OneMain Finance Corporation                  ☐


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
OneMain Holdings, Inc.                 Yes ☐ No ☑
OneMain Finance Corporation                 Yes ☐ No ☑


At April 19, 2023, there were 120,587,214 shares of OneMain Holdings, Inc’s common stock, $0.01 par value, outstanding.
At April 19, 2023, there were 10,160,021 shares of OneMain Finance Corporation’s common stock, $0.50 par value, outstanding.
2

TABLE OF CONTENTS
4
   
 
6
 
7
 
8
 
9
 
 
   
   

3

GLOSSARY

Terms and abbreviations used in this report are defined below.
Term or Abbreviation Definition
30-89 Delinquency ratio net finance receivables 30-89 days past due as a percentage of net finance receivables
ABS asset-backed securities
Adjusted pretax income (loss) a non-GAAP financial measure used by management as a key performance measure of our segment
AETR annual effective tax rate
AHL American Health and Life Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC
Annual Report the Annual Report on Form 10-K of OMH and OMFC for the fiscal year ended December 31, 2022, filed with the SEC on February 10, 2023
ASC Accounting Standards Codification
ASU Accounting Standards Update
ASU 2018-12
The accounting standard issued by FASB in August of 2018, Financial Services-Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts
ASU 2022-02
The accounting standard issued by FASB in March of 2022, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures
Average daily debt balance average of debt for each day in the period
Average net receivables average of net finance receivables for each day in the period
Base Indenture indenture, dated as of December 3, 2014, by and between OMFC and Wilmington Trust, National Association, as trustee, and guaranteed by OMH
Board the OMH Board of Directors
C&I Consumer and Insurance
CDO collateralized debt obligations
CFPB Consumer Financial Protection Bureau
CMBS commercial mortgage-backed securities
Corporate AMT Corporate Alternative Minimum Tax, as implemented by the Inflation Reduction Act
Exchange Act Securities Exchange Act of 1934, as amended
FASB Financial Accounting Standards Board
GAAP generally accepted accounting principles in the United States of America
GAP guaranteed asset protection
Gross charge-off ratio annualized gross charge-offs as a percentage of average net receivables
Gross finance receivables
the unpaid principal balance of our personal loans. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the principal balance and billed interest and fees
Indenture the Base Indenture, together with all subsequent Supplemental Indentures
IRA Inflation Reduction Act, signed into law on August 16, 2022
Junior Subordinated Debenture $350 million aggregate principal amount of 60-year junior subordinated debt issued by OMFC under an indenture dated January 22, 2007, by and between OMFC and Deutsche Bank Trust Company, as trustee, and guaranteed by OMH
Managed receivables consist of our C&I net finance receivables and finance receivables serviced for our whole loan sale partners
Modified finance receivables finance receivable contractually modified, subsequent to the adoption of ASU 2022-02 on January 1, 2023, as a result of the borrower’s financial difficulties
Moody’s Moody’s Investors Service, Inc.
Net charge-off ratio annualized net charge-offs as a percentage of average net receivables
Net interest income interest income less interest expense
ODART OneMain Direct Auto Receivables Trust
4

Term or Abbreviation Definition
OMFC OneMain Finance Corporation
OMFH OneMain Financial Holdings, LLC
OMFIT OneMain Financial Issuance Trust
OMH OneMain Holdings, Inc.
OneMain OneMain Holdings, Inc. and OneMain Finance Corporation, collectively with their subsidiaries
Open accounts consist of credit card accounts that are not charged-off or closed accounts with a zero balance as of period end
Other securities
primarily consist of equity securities and those securities for which the fair value option was elected. Other securities recognize unrealized gains and losses in investment revenues
Pretax capital generation
a non-GAAP financial measure used by management as a key performance measure of our segment, defined as C&I adjusted pretax income (loss) excluding the change in C&I allowance for finance receivable losses
Private Secured Term Funding $350 million aggregate principal amount of debt collateralized by our personal loans issued on April 25, 2022
Purchase volume consists of credit card purchase transactions in the period, including cash advances, net of returns
Recovery ratio annualized recoveries on net charge-offs as a percentage of average net receivables
Revenue yield annualized credit card finance charges, net of merchant and ancillary servicing fees, as a percentage of average net credit card receivables
RMBS residential mortgage-backed securities
SEC U.S. Securities and Exchange Commission
Securities Act Securities Act of 1933, as amended
Segment Accounting Basis a basis used to report the operating results of our C&I segment and our Other components, which reflects our allocation methodologies for certain costs and excludes the impact of applying purchase accounting
SpringCastle Portfolio loans the Company previously owned and now services on behalf of a third party
Supplemental Indentures collectively, the following supplements to the Base Indenture: Fifth Supplemental Indenture, dated as of March 12, 2018; Sixth Supplemental Indenture, dated as of May 11, 2018; Seventh Supplemental Indenture, dated as of February 22, 2019; Eighth Supplemental Indenture, dated as of May 9, 2019; Ninth Supplemental Indenture, dated as of November 7, 2019; Eleventh Supplemental Indenture, dated as of December 17, 2020; Twelfth Supplemental Indenture, dated as of June 22, 2021; and Thirteenth Supplemental Indenture, dated as of August 11, 2021
Tax Act Public Law 115-97 amending the Internal Revenue Code of 1986
TDR finance receivables troubled debt restructured finance receivables. Debt restructuring, prior to the adoption of ASU 2022-02 on January 1, 2023, in which a concession was granted to the borrower as a result of economic or legal reasons related to the borrower’s financial difficulties
Triton Triton Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC
Unearned finance charges the amount of interest that is capitalized at time of origination on a precompute loan that will be earned over the remaining contractual life of the loan
Unencumbered loans unencumbered gross finance receivables excluding credit cards
Unsecured corporate revolver
unsecured revolver with a maximum borrowing capacity of $1.25 billion, payable and due on October 25, 2026
Unsecured Notes the notes, on a senior unsecured basis, issued by OMFC and guaranteed by OMH
VIEs variable interest entities
Weighted average interest rate annualized interest expense as a percentage of average debt
XBRL eXtensible Business Reporting Language
Yield annualized finance charges as a percentage of average net receivables
5

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)

(dollars in millions, except par value amount) March 31, 2023 December 31, 2022
Assets    
Cash and cash equivalents $ 544  $ 498 
Investment securities (includes available-for-sale securities with a fair value of $1.7 billion and an amortized cost basis of $1.9 billion in 2023 and 2022)
 1,786  1,800 
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion in 2023 and $10.4 billion in 2022)
 19,809  19,986 
Unearned insurance premium and claim reserves (740) (749)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022)
 (2,298) (2,311)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses 16,771  16,926 
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022)
 531  461 
Goodwill 1,437  1,437 
Other intangible assets 261  261 
Other assets 1,113  1,154 
Total assets $ 22,443  $ 22,537 
Liabilities and Shareholders’ Equity    
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022)
 $ 18,206  $ 18,281 
Insurance claims and policyholder liabilities 615  620 
Deferred and accrued taxes 22  5 
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022)
 519  616 
Total liabilities 19,362  19,522 
Contingencies (Note 12)
Shareholders’ equity:    
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 120,587,214 and 121,042,125 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively
 1  1 
Additional paid-in capital 1,693  1,689 
Accumulated other comprehensive loss (108) (127)
Retained earnings 2,188  2,119 
Treasury stock, at cost; 14,475,790 and 13,813,476 shares at March 31, 2023 and December 31, 2022, respectively
 (693) (667)
Total shareholders’ equity 3,081  3,015 
Total liabilities and shareholders’ equity $ 22,443  $ 22,537 

See Notes to the Condensed Consolidated Financial Statements (Unaudited).
6

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended
March 31,
(dollars in millions, except per share amounts) 2023 2022
Interest income $ 1,094  $ 1,089 
Interest expense 239  219 
Net interest income 855  870 
Provision for finance receivable losses 385  238 
Net interest income after provision for finance receivable losses 470  632 
Other revenues:    
Insurance 111  111 
Investment 25  15 
Gain on sales of finance receivables 17  17 
Other 24  19 
Total other revenues 177  162 
Other expenses:    
Salaries and benefits 212  205 
Other operating expenses 153  148 
Insurance policy benefits and claims 47  42 
Total other expenses 412  395 
Income before income taxes 235  399 
Income taxes 56  96 
Net income $ 179  $ 303 
Share Data:    
Weighted average number of shares outstanding:    
Basic 120,765,661  127,075,714 
Diluted 120,969,891  127,463,027 
Earnings per share:    
Basic $ 1.48  $ 2.38 
Diluted $ 1.48  $ 2.38 

See Notes to the Condensed Consolidated Financial Statements (Unaudited).
7

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended
March 31,
(dollars in millions) 2023 2022
   
Net income $ 179  $ 303 
Other comprehensive income (loss):    
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities 24  (105)
Foreign currency translation adjustments —  2 
Changes in discount rate for insurance claims and policyholder liabilities 4  32 
Other (3) 13 
Income tax effect:    
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities (5) 24 
Foreign currency translation adjustments —  (1)
Changes in discount rate for insurance claims and policyholder liabilities (1) (7)
Other —  (3)
Other comprehensive income (loss), net of tax, before reclassification adjustments 19  (45)
Reclassification adjustments included in net income, net of tax:    
Net realized losses on available-for-sale securities, net of tax —  (2)
Reclassification adjustments included in net income, net of tax —  (2)
Other comprehensive income (loss), net of tax 19  (47)
Comprehensive income $ 198  $ 256 

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

8

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)
OneMain Holdings, Inc. Shareholders’ Equity
(dollars in millions) Common
Stock		 Additional
Paid-in
Capital		 Accumulated
Other Comprehensive
Income (Loss)		 Retained
Earnings		 Treasury Stock Total Shareholders’ Equity
Three Months Ended
March 31, 2023
Balance, January 1, 2023 $ 1  $ 1,689  $ (127) $ 2,119  $ (667) $ 3,015 
Net impact of adoption of ASU 2022-02 (see Note 2) —  —  —  12  —  12 
Balance, January 1, 2023 (post-adoption) 1  1,689  (127) 2,131  (667) 3,027 
Common stock repurchased —  —  —  —  (27) (27)
Treasury stock issued —  —  —  —  1  1 
Share-based compensation expense, net of forfeitures
 —  12  —  —  —  12 
Withholding tax on share-based compensation
 —  (8) —  —  —  (8)
Other comprehensive income —  —  19  —  —  19 
Cash dividends *
 —  —  —  (122) —  (122)
Net income —  —  —  179  —  179 
Balance, March 31, 2023 $ 1  $ 1,693  $ (108) $ 2,188  $ (693) $ 3,081 
Three Months Ended
March 31, 2022
Balance, January 1, 2022 $ 1  $ 1,672  $ 5  $ 1,727  $ (368) $ 3,037 
Common stock repurchased
 —  —  —  —  (110) (110)
Share-based compensation expense, net of forfeitures
 —  12  —  —  —  12 
Withholding tax on share-based compensation
 —  (12) —  —  —  (12)
Other comprehensive loss
 —  —  (47) —  —  (47)
Cash dividends *
 —  —  —  (123) —  (123)
Net income
 —  —  —  303  —  303 
Balance, March 31, 2022 $ 1  $ 1,672  $ (42) $ 1,907  $ (478) $ 3,060 
                                      
* Cash dividends declared were $1.00 per share and $0.95 per share during the three months ended March 31, 2023 and 2022, respectively.

See Notes to the Condensed Consolidated Financial Statements (Unaudited).
9

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended
March 31,
(dollars in millions) 2023 2022
Cash flows from operating activities    
Net income $ 179  $ 303 
Reconciling adjustments:
Provision for finance receivable losses 385  238 
Depreciation and amortization 61  61 
Deferred income tax charge 9  22 
Share-based compensation expense, net of forfeitures 12  12 
Gain on sales of finance receivables (17) (17)
Other (1) (2)
Cash flows due to changes in other assets and other liabilities (66) (65)
Net cash provided by operating activities 562  552 
Cash flows from investing activities    
Net principal originations and purchases of finance receivables (432) (245)
Proceeds from sales of finance receivables 200  200 
Available-for-sale securities purchased (44) (90)
Available-for-sale securities called, sold, and matured 88  196 
Other securities purchased (2) (2)
Other securities called, sold, and matured 2  7 
Other, net (16) (16)
Net cash provided by (used for) investing activities (204) 50 
Cash flows from financing activities    
Proceeds from issuance and borrowings of long-term debt, net of issuance costs 843  198 
Repayments and repurchases of long-term debt (928) (398)
Cash dividends (123) (126)
Common stock repurchased (27) (110)
Treasury stock issued 1  — 
Withholding tax on share-based compensation (8) (12)
Net cash used for financing activities (242) (448)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents 116  154 
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 959  1,017 
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 1,075  $ 1,171 
Supplemental cash flow information
Cash and cash equivalents $ 544  $ 640 
Restricted cash and restricted cash equivalents 531  531 
Total cash and cash equivalents and restricted cash and restricted cash equivalents $ 1,075  $ 1,171 

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our secured transactions.

See Notes to the Condensed Consolidated Financial Statements (Unaudited).
10

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)

(dollars in millions, except par value amount) March 31, 2023 December 31, 2022
Assets
Cash and cash equivalents $ 533  $ 490 
Investment securities (includes available-for-sale securities with a fair value of $1.7 billion and an amortized cost basis of $1.9 billion in 2023 and 2022)
 1,786  1,800 
Net finance receivables (includes loans of consolidated VIEs of $11.1 billion  in 2023 and $10.4 billion in 2022)
 19,809  19,986 
Unearned insurance premium and claim reserves (740) (749)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2023 and $1.1 billion in 2022)
 (2,298) (2,311)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses 16,771  16,926 
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash
    equivalents of consolidated VIEs of $513 million in 2023 and $442 million in 2022)
 531  461 
Goodwill 1,437  1,437 
Other intangible assets 261  261 
Other assets 1,113  1,152 
Total assets $ 22,432  $ 22,527 
Liabilities and Shareholder’s Equity
Long-term debt (includes debt of consolidated VIEs of $10.1 billion in 2023 and $9.4 billion in 2022)
 $ 18,206  $ 18,281 
Insurance claims and policyholder liabilities 615  620 
Deferred and accrued taxes 23  5 
Other liabilities (includes other liabilities of consolidated VIEs of $20 million in 2023 and $20 million in 2022)
 520  617 
Total liabilities 19,364  19,523 
Contingencies (Note 12)
Shareholder’s equity:
Common stock, par value $0.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued
    and outstanding at March 31, 2023 and December 31, 2022
 5  5 
Additional paid-in capital 1,937  1,933 
Accumulated other comprehensive loss (108) (127)
Retained earnings 1,234  1,193 
Total shareholder’s equity 3,068  3,004 
Total liabilities and shareholder’s equity $ 22,432  $ 22,527 

See Notes to the Condensed Consolidated Financial Statements (Unaudited).
11

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended
March 31,
(dollars in millions) 2023 2022
Interest income $ 1,094  $ 1,089 
Interest expense 239  219 
Net interest income 855  870 
Provision for finance receivable losses 385  238 
Net interest income after provision for finance receivable losses 470  632 
Other revenues:
Insurance 111  111 
Investment 25  15 
Gain on sales of finance receivables 17  17 
Other 24  19 
Total other revenues 177  162 
Other expenses:
Salaries and benefits 212  205 
Other operating expenses 153  148 
Insurance policy benefits and claims 47  42 
Total other expenses 412  395 
Income before income taxes 235  399 
Income taxes 56  96 
Net income $ 179  $ 303 

See Notes to the Condensed Consolidated Financial Statements (Unaudited).

12

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended
March 31,
(dollars in millions) 2023 2022
Net income $ 179  $ 303 
Other comprehensive income (loss):
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities 24  (105)
Foreign currency translation adjustments —  2 
Changes in discount rate for insurance claims and policyholder liabilities 4  32 
Other (3) 13 
Income tax effect:
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities (5) 24 
Foreign currency translation adjustments —  (1)
Changes in discount rate for insurance claims and policyholder liabilities (1) (7)
Other —  (3)
Other comprehensive income (loss), net of tax, before reclassification adjustments 19  (45)
Reclassification adjustments included in net income, net of tax:
Net realized losses on available-for-sale securities, net of tax —  (2)
Reclassification adjustments included in net income, net of tax —  (2)
Other comprehensive income (loss), net of tax 19  (47)
Comprehensive income $ 198  $ 256 

See Notes to the Condensed Consolidated Financial Statements (Unaudited).
13

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Shareholder’s Equity (Unaudited)

OneMain Finance Corporation Shareholder's Equity
(dollars in millions) Common
Stock		 Additional
Paid-in
Capital		 Accumulated
Other Comprehensive
Income (Loss)		 Retained
Earnings		 Total Shareholder’s Equity
Three Months Ended
March 31, 2023
Balance, January 1, 2023 $ 5  $ 1,933  $ (127) $ 1,193  $ 3,004 
Net impact of adoption of ASU 2022-02 (see Note 2) —  —  —  12  12 
Balance, January 1, 2023 (post-adoption) 5  1,933  (127) 1,205  3,016 
Share-based compensation expense, net of forfeitures —  12  —  —  12 
Withholding tax on share-based compensation —  (8) —  —  (8)
Other comprehensive income —  —  19  —  19 
Cash dividends —  —  —  (150) (150)
Net income —  —  —  179  179 
Balance, March 31, 2023 $ 5  $ 1,937  $ (108) $ 1,234  $ 3,068 
Three Months Ended
March 31, 2022
Balance, January 1, 2022 $ 5  $ 1,916  $ 5  $ 1,078  $ 3,004 
Share-based compensation expense, net of forfeitures —  12  —  —  12 
Withholding tax on share-based compensation —  (12) —  —  (12)
Other comprehensive loss —  —  (47) —  (47)
Cash dividends —  —  —  (223) (223)
Net income —  —  —  303  303 
Balance, March 31, 2022 $ 5  $ 1,916  $ (42) $ 1,158  $ 3,037 

See Notes to the Condensed Consolidated Financial Statements (Unaudited).
14

ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended
March 31,
(dollars in millions) 2023 2022
Cash flows from operating activities
Net income $ 179  $ 303 
Reconciling adjustments:
Provision for finance receivable losses 385  238 
Depreciation and amortization 61  61 
Deferred income tax charge 9  22 
Share-based compensation expense, net of forfeitures 12  12 
Gain on sales of finance receivables (17) (17)
Other (1) (2)
Cash flows due to changes in other assets and other liabilities (66) (64)
Net cash provided by operating activities 562  553 
Cash flows from investing activities
Net principal originations and purchases of finance receivables (432) (245)
Proceeds from sales of finance receivables 200  200 
Available-for-sale securities purchased (44) (90)
Available-for-sale securities called, sold, and matured 88  196 
Other securities purchased (2) (2)
Other securities called, sold, and matured 2  7 
Other, net (16) (16)
Net cash provided by (used for) investing activities (204) 50 
Cash flows from financing activities
Proceeds from issuance and borrowings of long-term debt, net of issuance costs 843  198 
Repayments and repurchases of long-term debt (928) (398)
Cash dividends (152) (226)
Withholding tax on share-based compensation (8) (12)
Net cash used for financing activities (245) (438)
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents 113  165 
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 951  986 
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 1,064  $ 1,151 
Supplemental cash flow information
Cash and cash equivalents $ 533  $ 620 
Restricted cash and restricted cash equivalents 531  531 
Total cash and cash equivalents and restricted cash and restricted cash equivalents $ 1,064  $ 1,151 

Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our secured transactions.

See Notes to the Condensed Consolidated Financial Statements (Unaudited).
15

ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
March 31, 2023


1. Business and Basis of Presentation

OneMain Holdings, Inc. (“OMH”), and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”) are financial services holding companies whose subsidiaries engage in the consumer finance and insurance businesses.

The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this filing relates to both OMH and OMFC, except where otherwise indicated. OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “OneMain,” “we,” “us,” or “our.”

BASIS OF PRESENTATION

We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.

We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date.

The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report. We follow the same significant accounting policies for our interim reporting except for the new accounting pronouncements subsequently adopted and disclosed in Note 2. To conform to the 2023 presentation, we reclassified certain items in prior periods of our condensed consolidated financial statements.

16

2. Recent Accounting Pronouncements

ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED

Insurance

In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. The ASU requires the assumptions used to measure the liability for future policy benefits to be updated at least annually. The guidance prescribes the discount rate used to measure the liability to be an upper-medium grade fixed-income instrument yield and updated at each reporting date with changes in the liability due to the discount rate recognized in other comprehensive income.

The amendments in this ASU became effective for the Company beginning January 1, 2023 and we adopted using the modified retrospective transition method. This ASU required a transition date of January 1, 2021 and resulted in recasting prior periods.

The effects of the adoption of ASU 2018-12 to our condensed consolidated balance sheets were as follows:
(dollars in millions) As Reported ASU 2018-12 Adjustment As Recast
December 31, 2022
Other assets (OMH only) $ 1,150  $ 4  $ 1,154 
Other assets (OMFC only) 1,148  4  1,152 
Insurance claims and policyholder liabilities 602  18  620 
Accumulated other comprehensive loss (119) (8) (127)
Retained earnings (OMH only) 2,125  (6) 2,119 
Retained earnings (OMFC only) 1,199  (6) 1,193 
March 31, 2022
Other assets (OMH only) $ 981  $ 8  $ 989 
Other assets (OMFC only) 980  8  988 
Insurance claims and policyholder liabilities 621  37  658 
Accumulated other comprehensive loss (11) (31) (42)
Retained earnings (OMH only) 1,905  2  1,907 
Retained earnings (OMFC only) 1,156  2  1,158 
December 31, 2021
Other assets (OMH only) $ 1,003  $ 16  $ 1,019 
Other assets (OMFC only) 1,001  16  1,017 
Insurance claims and policyholder liabilities 621  72  693 
Accumulated other comprehensive income 61  (56) 5 
January 1, 2021
Other assets (OMH and OMFC) $ 1,054  $ 21  $ 1,075 
Insurance claims and policyholder liabilities 621  97  718 
Accumulated other comprehensive income 94  (76) 18 

17

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of operations were as follows:
(dollars in millions, except per share amounts) As Reported ASU 2018-12 Adjustment As Recast
Three Months Ended March 31, 2022
Insurance policy benefits and claims $ 45  $ (3) $ 42 
Income before income taxes 396  3  399 
Income taxes 95  1  96 
Net income 301  2  303 
Basic EPS (OMH only) 2.37  0.01  2.38 
Diluted EPS (OMH only) 2.36  0.02  2.38 

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of comprehensive income were as follows:
(dollars in millions) As Reported ASU 2018-12 Adjustment As Recast
Three Months Ended March 31, 2022
Comprehensive income $ 229  $ 27  $ 256 

The effects of the adoption of ASU 2018-12 to our condensed consolidated statements of cash flows were as follows:
(dollars in millions) As Reported ASU 2018-12 Adjustment As Recast
Three Months Ended March 31, 2022
Net income $ 301  $ 2  $ 303 
Deferred income tax charge 21  1  22 
Cash flows due to changes in other assets and other liabilities (OMH only) (62) (3) (65)
Cash flows due to changes in other assets and other liabilities (OMFC only) (61) (3) (64)

As a result of the adoption of ASU 2018-12, our significant accounting policy related to long-duration insurance contracts for policy and claim reserves has changed to reflect the requirements of the new standard. See below for the updated significant accounting policy as of the transition date of January 1, 2021.

Policy and Claim Reserves

Policy reserves are established for our long-duration contracts. The liability for future policy benefits is the present value of estimated future policy benefits to be paid to or on behalf of policyholders less the present value of estimated future net premiums to be collected from policyholders. To estimate the liability, we make assumptions for mortality, morbidity, lapses, and the discount rate.

At least annually, we update our estimate of the liability with actual experience and review our cash flow assumptions. The updated liability is discounted at the original discount rate at contract inception, and the change in the balance is recognized as a remeasurement gain or loss and included in Insurance policy benefits and claims in our consolidated statements of operations.

The discount rate assumption is the equivalent of an upper-medium grade fixed-income instrument yield. To determine the original discount rate at contract inception, we use a weighted average rate based on a forward yield curve over the contract issue year. At each reporting period, the liability is remeasured using the current discount rate and the change in the liability due to the discount rate is recognized in Accumulated other comprehensive income (loss) in our consolidated balance sheets.
18

Financial Instruments

In March of 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting for troubled debt restructurings by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendment also requires disclosure of gross charge-offs by year of origination for finance receivables.

We adopted the amendments in this ASU as of January 1, 2023 using the modified retrospective transition method.

Upon adoption, we recorded a decrease to the allowance for finance receivable losses of $16 million, a decrease to deferred tax assets of $4 million and a one-time corresponding cumulative increase to retained earnings, net of tax, of $12 million in our consolidated balance sheets as of January 1, 2023.

As a result of the adoption of ASU 2022-02, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for the updated significant accounting policies as of January 1, 2023.

Troubled Debt Restructured Finance Receivables

ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. As a result of the adoption of this ASU, the accounting for TDRs is no longer applicable for periods beginning on or after January 1, 2023.

Modified Finance Receivables to Borrowers Experiencing Financial Difficulty

We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty, participating in a counseling or settlement arrangement, or are in bankruptcy. When we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties, we classify that receivable as a modified finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future.

When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce the interest rate, extend the term, defer or forgive past due interest, or forgive principal. As part of the modification, we may require qualifying payments before the accounts are generally brought current for delinquency reporting. In addition, for principal forgiveness, we may require future payment performance by the borrower under the modified terms before the balances are contractually forgiven. We fully reserve for any potential principal forgiveness in our allowance for finance receivable losses.

Account modifications that are deemed to be a modified finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses.

Allowance for Finance Receivable Losses

We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment.

We estimate the allowance for finance receivable losses primarily on historical loss experience using a cumulative loss model applied to our personal loan portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our personal loans are primarily segmented in the loss model by contractual delinquency status.

Other attributes in the model include loan modification status, collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. We also consider key economic trends including unemployment rates. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. No new volume is assumed. Personal loan renewals are a significant piece of our new volume and are considered a terminal event of the previous loan.
19


For our personal loans, we have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charge amounts previously accrued after four contractual payments become past due. For credit cards, we measure an allowance on uncollected finance charges, but do not measure an allowance on the unfunded portion of the credit card lines as the accounts are unconditionally cancellable.

Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors (such as recent portfolio, industry, and other economic trends), and experience in the consumer finance industry. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning.

We generally charge off to the allowance for finance receivable losses on personal loans and credit cards that are beyond seven payments (approximately 180 days) past due. Exceptions include accounts in bankruptcy, which are generally charged off at the earlier of notice of discharge or when the customer becomes seven payments past due, and accounts of deceased borrowers, which are generally charged off at the time of notice. Generally, we start repossession of any titled personal property when the customer becomes two payments (approximately 30 days) past due and may charge off prior to the account becoming seven payments (approximately 180 days) past due.

We may renew delinquent secured or unsecured personal loan accounts if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the renewed loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit.

See Notes 3 and 4 for additional information on the adoption of ASU 2022-02.
20


3. Finance Receivables

Our finance receivables consist of personal loans and credit cards. Personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles, other titled collateral, or are unsecured. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured.

Components of our net finance receivables were as follows:
(dollars in millions) Personal Loans Credit Cards Total
March 31, 2023
Gross finance receivables * $ 19,444  $ 121  $ 19,565 
Unearned fees
 (215) —  (215)
Accrued finance charges and fees 276  —  276 
Deferred origination costs 182  1  183 
Total $ 19,687  $ 122  $ 19,809 
December 31, 2022
Gross finance receivables * $ 19,615  $ 107  $ 19,722 
Unearned fees
 (220) —  (220)
Accrued finance charges and fees 299  —  299 
Deferred origination costs 185  —  185 
Total $ 19,879  $ 107  $ 19,986 
* Personal loan gross finance receivables equal the unpaid principal balance. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the principal balance and billed interest and fees.

WHOLE LOAN SALE TRANSACTIONS

As of March 31, 2023, we have whole loan sale flow agreements with third parties, with remaining terms of less than one year, in which we agreed to sell a combined total of $135 million gross receivables per quarter of newly originated unsecured personal loans along with any associated accrued interest. These unsecured personal loans are derecognized from our balance sheet at the time of sale. We service the personal loans sold and are entitled to a servicing fee and other fees commensurate with the services performed as part of the agreements. The gain on sales and servicing fees are recorded in Other revenues in our condensed consolidated statements of operations. We sold $180 million of gross finance receivables during the three months ended March 31, 2023 and 2022. The gain on the sales were $17 million during the three months ended March 31, 2023 and 2022.

CREDIT QUALITY INDICATOR

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.

When personal loans are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. We consider our personal loans to be nonperforming at 90 days or more contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. For our personal loans, we reversed net accrued finance charges of $37 million and $27 million during the three months ended March 31, 2023 and 2022, respectively.

Finance charges recognized from the contractual interest portion of payments received on nonaccrual personal loans totaled $6 million and $4 million during the three months ended March 31, 2023 and 2022, respectively. All personal loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses.

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We accrue finance charges and fees on credit cards until charge-off at approximately 180 days past due, at which point we reverse finance charges and fees previously accrued. For credit cards, net accrued finance charges and fees reversed for the three months ended March 31, 2023 and 2022 were immaterial.

The following tables below are a summary of our personal loans by the year of origination and number of days delinquent:

(dollars in millions) 2023 2022 2021 2020 2019 Prior Total
March 31, 2023
Performing
Current $ 2,641  $ 9,224  $ 4,195  $ 1,464  $ 861  $ 260  $ 18,645 
30-59 days past due 3  137  98  31  19  9  297 
60-89 days past due —  98  72  22  13  6  211 
Total performing 2,644  9,459  4,365  1,517  893  275  19,153 
Nonperforming (Nonaccrual)
90+ days past due —  217  206  61  35  15  534 
Total $ 2,644  $ 9,676  $ 4,571  $ 1,578  $ 928  $ 290  $ 19,687 
Gross charge-offs $ —  $ 139  $ 199  $ 59  $ 34  $ 14  $ 445 

(dollars in millions) 2022 2021 2020 2019 2018 Prior Total
December 31, 2022
Performing
Current $ 10,614  $ 4,927  $ 1,758  $ 1,081  $ 240  $ 105  $ 18,725 
30-59 days past due 136  136  43  28  9  5  357 
60-89 days past due 92  101  32  19  6  3  253 
Total performing 10,842  5,164  1,833  1,128  255  113  19,335 
Nonperforming (Nonaccrual)
90+ days past due 160  246  74  44  13  7  544 
Total $ 11,002  $ 5,410  $ 1,907  $ 1,172  $ 268  $ 120  $ 19,879 

The following is a summary of credit cards by number of days delinquent:
(dollars in millions) March 31, 2023 December 31, 2022
Current
 $ 106  $ 93 
30-59 days past due
 4  3 
60-89 days past due
 3  3 
90+ days past due
 9  8 
Total
 $ 122  $ 107 

There were no credit cards that were converted to term loans at March 31, 2023 or December 31, 2022.

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MODIFIED FINANCE RECEIVABLES TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY

Information regarding modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:
(dollars in millions) Three Months Ended
March 31, 2023
Interest rate reduction and term extension $ 126
Interest rate reduction and principal forgiveness 96
Payment delays —
Total modifications to borrowers experiencing financial difficulties $ 222
Modifications as a percent of net finance receivables 1.13  %

Information regarding the financial effect of modifications to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:
(dollars in millions) Three Months Ended
March 31, 2023
Weighted-average interest rate reduction 21.32  %
Weighted-average term extension (months) 19
Principal/interest forgiveness $ 11

Information regarding the performance of modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, were as follows:
(dollars in millions) March 31, 2023
Current
 $ 159 
30-59 days past due
 27 
60-89 days past due 14 
90+ days past due
 22 
Total $ 222 

There were no modified finance receivables to borrowers experiencing financial difficulty on or after January 1, 2023, the effective date of ASU 2022-02, and for which there was a default during the period to cause the modified finance receivable to be considered nonperforming (90 days or more past due).

See Notes 2 and 4 for additional information on the adoption of ASU 2022-02.

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TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES PRIOR TO ADOPTION OF ASU 2022-02

ASU 2022-02 superseded the accounting for troubled debt restructurings by creditors. Due to the adoption of this ASU, the following disclosures related to troubled debt restructuring finance receivables are no longer applicable for reporting periods beginning in 2023.

Information regarding TDR finance receivables were as follows:
(dollars in millions) December 31, 2022
 
TDR gross finance receivables $ 898 
TDR net finance receivables * 904 
Allowance for TDR finance receivable losses 369 
*    TDR net finance receivables are TDR gross finance receivables net of unearned fees, accrued finance charges, and deferred origination costs.

There were no credit cards classified as TDR finance receivables at December 31, 2022.

Information regarding the new volume of the TDR finance receivables were as follows:
(dollars in millions) Three Months Ended
March 31, 2022
Pre-modification TDR net finance receivables $ 134 
Post-modification TDR net finance receivables:
Rate reduction 87 
Other * 47 
Total post-modification TDR net finance receivables $ 134 
Number of TDR accounts 16,165 
*    “Other” modifications primarily consist of loans with both rate reductions and the potential of principal forgiveness contingent on future payment performance by the borrower under the modified terms.

Finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table:
(dollars in millions) Three Months Ended
March 31, 2022
TDR net finance receivables * $ 30 
Number of TDR accounts 3,796 
* Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted.


UNFUNDED LENDING COMMITMENTS

Our unfunded lending commitments consist of the unused credit card lines, which are unconditionally cancellable. We do not anticipate that all of our customers will access their entire available line at any given point in time. The unused credit card lines totaled $99 million at March 31, 2023 and $81 million at December 31, 2022.

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4. Allowance for Finance Receivable Losses

We establish an allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by the level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the finance receivables through the delinquency buckets. We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions.

Our methodology to estimate expected credit losses uses recent macroeconomic forecasts, which include forecasts for unemployment. We leverage projections from various industry leading providers. We also consider inflationary pressures, consumer confidence levels, and interest rate increases that may continue to impact the economic outlook. At March 31, 2023, our economic forecast used a reasonable and supportable period of 12 months. The decrease in our allowance for finance receivable losses for the three months ended March 31, 2023 was primarily due to the adoption of ASU 2022-02. 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.

Changes in the allowance for finance receivable losses were as follows:

(dollars in millions) Personal Loans Credit Cards Total
Three Months Ended March 31, 2023
Balance at beginning of period $ 2,290  $ 21  $ 2,311 
Impact of adoption of ASU 2022-02 * (16) —  (16)
Provision for finance receivable losses 377  8  385 
Charge-offs (445) (6) (451)
Recoveries 69  —  69 
Balance at end of period $ 2,275  $ 23  $ 2,298 
Three Months Ended March 31, 2022
Balance at beginning of period $ 2,090  $ 5  $ 2,095 
Provision for finance receivable losses 233  5  238 
Charge-offs (329) —  (329)
Recoveries 67  —  67 
Balance at end of period $ 2,061