0001101215-26-000040 | 10-Q | XBRL Viewer | Bread Financial Holdings INC

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SECURITIZATIONS - Narrative (Details)	3 Months Ended
SECURITIZATIONS - Narrative (Details)	Mar. 31, 2026
Minimum
Offsetting Assets [Line Items]
Minimum interests requirement	4.00%
Maximum
Offsetting Assets [Line Items]
Minimum interests requirement	8.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2026

Accounting Policies [Abstract]

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF BUSINESS

We are a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions to millions of U.S. consumers. Our payment solutions deliver growth for some of the most recognized brands in travel and entertainment, specialty apparel, health and beauty, jewelry, sporting goods, technology and electronics, as well as home and furniture through our co-brand and private label credit cards and pay-over-time products providing choice and value to our shared customers. Additionally, we offer Bread Financial general purpose credit cards and saving products that empower our customers and their passions for a better life.

We have continued to diversify our product mix with our brand partners through growth of our co-brand credit card programs, which, relative to our private label credit card programs, have higher credit sales per account and an improved credit risk mix that generally results in higher transactor balances, lower delinquencies and late fees, as well as lower losses. We also offer our proprietary credit cards along with the expansion of our Bread Pay products, which are our installment loans and “split-pay” offerings.

Our partner base consists of large consumer-based businesses, including well-known brands such as (alphabetically) AAA, Academy Sports + Outdoors, Caesars, Dell Technologies, Hard Rock International, the NFL, Raymour & Flanigan, Saks Fifth Avenue, Signet, Ulta and Victoria’s Secret, as well as small- and medium-sized businesses (SMBs). Our partner base is well diversified across a broad range of industries and retail verticals, including travel and entertainment, specialty apparel, health and beauty, jewelry, sporting goods, technology and electronics, as well as home and furniture. We believe our comprehensive suite of payment, lending and saving solutions, along with our related marketing and data and analytics, allows us to offer products relevant across all customer segments (Gen Z, Millennial, Gen X and Baby Boomers). The breadth and quality of our product and service offerings, coupled with our customer-centric approach, have enabled us to establish and maintain long-standing partner relationships. We operate our business through a single reportable segment, with our primary source of revenue being from Interest and fees on loans from our various credit card and other loan products, and to a lesser extent from contractual relationships with our brand partners.

Throughout this report, unless stated or the context implies otherwise, the terms “Bread Financial”, “BFH”, the “Company”, “we”, “our” or “us” refer to Bread Financial Holdings, Inc. and its subsidiaries on a consolidated basis. References to “Parent Company” refer to Bread Financial Holdings, Inc. on a parent-only standalone basis. In addition, in this report we may refer to the retailers and other companies with whom we do business as our “partners”, “brand partners”, or “clients”, provided that the use of the term “partner”, “partnering” or any similar term does not mean or imply a formal legal partnership, and is not meant in any way to alter the terms of Bread Financial’s relationship with any third parties. We offer our credit products through our insured depository institution subsidiaries, Comenity Bank and Comenity Capital Bank, which together are referred to herein as the “Banks.”

BASIS OF PRESENTATION

These unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on February 13, 2026 (the 2025 Form 10-K). If not significantly different, certain note disclosures included therein have been omitted from these unaudited Consolidated Financial Statements.

The unaudited Consolidated Financial Statements included herein reflect all adjustments, which consist of normal, recurring adjustments that are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The unaudited Consolidated Financial Statements also include amounts that relate to the previously disclosed discontinued operations associated with the spinoff of our former LoyaltyOne segment in 2021 and the sale of our former Epsilon segment in 2019. Such amounts have been classified within Discontinued operations and primarily relate to the after-tax impact of contractual indemnification and tax-related matters. For additional information about our previously disclosed discontinued operations please refer to Note 22, “Discontinued Operations and Bank Holding Company Financial Presentation” to the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. Results of operations reported for interim periods are not necessarily indicative of results for the

entire year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates and assumptions reflect the best judgment of management, but actual results could differ. The most significant of those estimates and assumptions relate to the Allowance for credit losses and Goodwill.

The accompanying unaudited Consolidated Financial Statements include the accounts of the Company and all subsidiaries in which we have a controlling financial interest. All intercompany transactions have been eliminated.

SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to our significant accounting policies as discussed in Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” included in our 2025 Form 10-K.

RECENTLY ISSUED ACCOUNTING STANDARDS






Accounting Standards Recently Adopted during 2026
Standard	Guidance	Timing and Financial Statement Impact
Debt – Debt with Conversion and Other Options: Induced Conversions of Convertible Debt Instruments Issued November, 2024	Improves the relevance and consistency in application of the induced conversion guidance for (a) convertible debt instruments with cash conversion features and (b) debt instruments that are not currently convertible.	Adopted January 1, 2026. Adoption had no impact on our financial reporting and will not have any impact in the near term as all of our Convertible Notes had been extinguished and no Convertible Notes remained outstanding as of December 31, 2025. Additionally, adoption did not have a significant impact on our operational processes, controls and governance in support of the new guidance.
Accounting Standards Recently Issued but Not Yet Adopted as of March 31, 2026
Standard	Guidance	Timing and Financial Statement Impact
Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses Issued November, 2024	Requires disaggregated disclosure within the notes to the Consolidated Financial Statements of certain income statement expenses on the face of the Consolidated Statements of Income, and further disaggregation of certain expense captions into specified categories.	Effective beginning with our Annual Report on Form 10-K for the year ending December 31, 2027, and effective for interim reporting periods beginning in 2028. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.
Intangibles – Goodwill and Other – Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software Issued September, 2025	Amends certain aspects of the accounting for and disclosure of internal-use software costs, including removing all references to prescriptive and sequential software development stages to align better with current software development methods, e.g., agile.	Effective January 1, 2028. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.
Financial Instruments – Credit Losses: Purchased Loans Issued November, 2025	Amends the accounting for acquired loans (excluding credit cards) that meet certain criteria at acquisition (referred to as purchased seasoned loans) by recognizing them at their purchase price plus an allowance for expected credit losses (i.e., the gross-up approach).	Effective January 1, 2027. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 181	$ 138
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	303	296
Depreciation and amortization	19	21
Deferred income taxes	12	23
Non-cash stock-based compensation	15	13
Amortization of deferred financing costs	4	4
Amortization of deferred origination costs	18	19
Change in other operating assets and liabilities
Change in other assets	11	(12)
Change in other liabilities	(84)	(109)
Other	8	0
Net cash provided by operating activities	487	393
CASH FLOWS FROM INVESTING ACTIVITIES
Change in credit card and other loans	328	697
Purchases of investments	(8)	(6)
Maturities of investments	4	5
Other, including capital expenditures	(7)	(5)
Net cash provided by investing activities	317	691
CASH FLOWS FROM FINANCING ACTIVITIES
Unsecured borrowings under debt agreements	0	400
Repayments/maturities of unsecured borrowings under debt agreements	(51)	(111)
Debt issued by consolidated variable interest entities	25	0
Repayments/maturities of debt issued by consolidated variable interest entities	(407)	(724)
Net increase in deposits	157	17
Payment of deferred financing costs	0	(8)
Repurchases of common stock	(153)	(103)
Dividends and dividend equivalent rights paid	(14)	(12)
Other	(32)	(21)
Net cash used in financing activities	(475)	(562)
Change in cash, cash equivalents and restricted cash	329	522
Cash, cash equivalents and restricted cash at beginning of period	3,628	3,714
Cash, cash equivalents and restricted cash at end of period	3,957	4,236
Cash and cash equivalents reconciliation
Cash and cash equivalents	3,637	4,212
Restricted cash included within Other assets	320	24
Total cash, cash equivalents and restricted cash	$ 3,957	$ 4,236

PREFERRED STOCK AND COMMON STOCK - Preferred Stock (Details) $ / shares in Units, $ in Millions	1 Months Ended
	Nov. 30, 2025 USD ($) $ / shares shares	Mar. 31, 2026 USD ($) $ / shares shares	Dec. 31, 2025 USD ($) $ / shares shares
Debt Instrument [Line Items]
Preferred stock, issued (in shares) \| shares		75,000.0	75,000.0
Preferred stock, authorized (in shares) \| shares		75,000.0	75,000.0
Preferred stock, par or stated value per share \| $ / shares		$ 0.01	$ 0.01
Preferred stock, liquidation preference, value \| $		$ 75	$ 75
Series A Preferred Stock
Debt Instrument [Line Items]
Preferred stock, issued (in shares) \| shares	75,000
Preferred stock, authorized (in shares) \| shares	75,000
Net proceeds from the issuance of preferred stock \| $	$ 75
Preferred stock, dividend rate, percentage	8.625%
Preferred stock, par or stated value per share \| $ / shares	$ 0.01
Preferred stock, liquidation preference (in per share) \| $ / shares	$ 1,000
Series A 8.625% Non-Cumulative Perpetual Preferred Stock
Debt Instrument [Line Items]
Preferred stock, convertible, conversion ratio	0.025
Preferred stock, liquidation preference (in per share) \| $ / shares	$ 25

REGULATORY MATTERS AND CAPITAL ADEQUACY (Details) $ in Millions	Mar. 31, 2026 USD ($)	Dec. 31, 2025 USD ($)
Tier 1 Leverage Capital Ratio
Total risk-weighted assets	$ 19,352	$ 19,755
Combined Banks
Tier 1 capital ratio
Ratio/Dollar Value	0.133	0.130
Minimum Ratio for Capital Adequacy Purposes *	0.045
Common Equity Tier 1 capital to risk-weighted assets
Ratio/Dollar Value	0.137	0.134
Minimum Ratio for Capital Adequacy Purposes *	6.00%
Banking Regulation, Risk-Based Information [Abstract]
Ratio/Dollar Value	0.169	0.168
Minimum Ratio for Capital Adequacy Purposes *	0.080
Tier 1 Leverage Capital Ratio
Ratio/Dollar Value	0.121	0.124
Minimum Ratio for Capital Adequacy Purposes *	0.040
Comenity Bank
Tier 1 capital ratio
Ratio/Dollar Value	0.151	0.151
Minimum Ratio for Capital Adequacy Purposes *	0.045
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.065
Common Equity Tier 1 capital to risk-weighted assets
Ratio/Dollar Value	0.151	0.151
Minimum Ratio for Capital Adequacy Purposes *	6.00%
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	8.00%
Banking Regulation, Risk-Based Information [Abstract]
Ratio/Dollar Value	0.165	0.165
Minimum Ratio for Capital Adequacy Purposes *	0.080
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.100
Tier 1 Leverage Capital Ratio
Ratio/Dollar Value	0.135	0.141
Minimum Ratio for Capital Adequacy Purposes *	0.040
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.050
Comenity Capital Bank
Tier 1 capital ratio
Ratio/Dollar Value	0.135	0.135
Minimum Ratio for Capital Adequacy Purposes *	0.045
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.065
Common Equity Tier 1 capital to risk-weighted assets
Ratio/Dollar Value	0.141	0.141
Minimum Ratio for Capital Adequacy Purposes *	6.00%
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	8.00%
Banking Regulation, Risk-Based Information [Abstract]
Ratio/Dollar Value	0.176	0.175
Minimum Ratio for Capital Adequacy Purposes *	0.080
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.100
Tier 1 Leverage Capital Ratio
Ratio/Dollar Value	0.124	0.132
Minimum Ratio for Capital Adequacy Purposes *	0.040
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.050

SECURITIZATIONS - Securitized Credit Card loans, Delinquencies andNet Principal Losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Offsetting Assets [Line Items]
Of which: principal amount of credit card loans 90 days or more past due	$ 235		$ 257
Net principal losses of securitized credit card loans	174	$ 215
Variable Interest Entity, Primary Beneficiary
Offsetting Assets [Line Items]
Total credit card loans – available to settle obligations of consolidated VIEs	$ 10,091		$ 10,708

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

DEPOSITS

3 Months Ended

Mar. 31, 2026

Other Liabilities Disclosure [Abstract]

DEPOSITS

Deposits were categorized as interest-bearing or non-interest-bearing as follows, as of the dates presented:


	March 31, 2026		December 31, 2025
(Millions)
Interest-bearing	$	14,048	$	13,891
Non-interest-bearing (including cardholder credit balances)	25		25
Total deposits	$	14,073	$	13,916

Deposits by deposit type were as follows as of the dates presented:


	March 31, 2026		December 31, 2025
(Millions)
Savings accounts
Direct-to-consumer (retail)	$	4,738	$	4,329
Wholesale	3,273		3,371
Certificates of deposit
Direct-to-consumer (retail)	3,970		4,193
Wholesale	2,067		1,998
Cardholder credit balances	25		25
Total deposits	$	14,073	$	13,916

The scheduled maturities of certificates of deposit were as follows as of March 31, 2026:


(Millions)
2026 (1)	$	3,870
2027	1,573
2028	465
2029	71
2030	53
Thereafter	5
Total certificates of deposit	$	6,037

__________________________________

(1)The 2026 balance includes $3 million in unamortized debt issuance costs, which are associated with the entire portfolio of certificates of deposit.

As of March 31, 2026 and December 31, 2025, retail deposits that exceeded applicable Federal Deposit Insurance Corporation (FDIC) insurance limits, which are generally $250,000 per depositor, per insured bank, per ownership category, were estimated to be $658 million (5% of Total deposits) and $638 million (5% of Total deposits), respectively. The measurement of estimated uninsured deposits aligns with regulatory guidelines.

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2026

Accounting Policies [Abstract]

BASIS OF PRESENTATION

RECENTLY ISSUED ACCOUNTING STANDARDS






Accounting Standards Recently Adopted during 2026
Standard	Guidance	Timing and Financial Statement Impact
Debt – Debt with Conversion and Other Options: Induced Conversions of Convertible Debt Instruments Issued November, 2024	Improves the relevance and consistency in application of the induced conversion guidance for (a) convertible debt instruments with cash conversion features and (b) debt instruments that are not currently convertible.	Adopted January 1, 2026. Adoption had no impact on our financial reporting and will not have any impact in the near term as all of our Convertible Notes had been extinguished and no Convertible Notes remained outstanding as of December 31, 2025. Additionally, adoption did not have a significant impact on our operational processes, controls and governance in support of the new guidance.
Accounting Standards Recently Issued but Not Yet Adopted as of March 31, 2026
Standard	Guidance	Timing and Financial Statement Impact
Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses Issued November, 2024	Requires disaggregated disclosure within the notes to the Consolidated Financial Statements of certain income statement expenses on the face of the Consolidated Statements of Income, and further disaggregation of certain expense captions into specified categories.	Effective beginning with our Annual Report on Form 10-K for the year ending December 31, 2027, and effective for interim reporting periods beginning in 2028. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.
Intangibles – Goodwill and Other – Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software Issued September, 2025	Amends certain aspects of the accounting for and disclosure of internal-use software costs, including removing all references to prescriptive and sequential software development stages to align better with current software development methods, e.g., agile.	Effective January 1, 2028. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.
Financial Instruments – Credit Losses: Purchased Loans Issued November, 2025	Amends the accounting for acquired loans (excluding credit cards) that meet certain criteria at acquisition (referred to as purchased seasoned loans) by recognizing them at their purchase price plus an allowance for expected credit losses (i.e., the gross-up approach).	Effective January 1, 2027. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.

CREDIT CARD AND OTHER LOANS

Our payment and lending solutions result in the origination of Credit card and other loans, which are recorded at the time a borrower enters into a point-of-sale transaction with a merchant. Credit card loans represent revolving lines of credit and have a range of terms that include credit limits, interest rates and fees, which can be revised over time based on new information about the cardholder, in accordance with applicable regulations and the governing terms and conditions. Cardholders choosing to make a payment of less than the full balance due, instead of paying in full, are subject to finance charges and are required to make monthly payments based on pre-established amounts. Other loans consist primarily of our pay-over-time products, which include installment loans and “split-pay” offerings, and have a range of fixed terms such as interest rates, fees and repayment periods, and require borrowers to make pre-established monthly payments over the term of the loan in accordance with the applicable terms and conditions. Credit card and other loans include principal and any related accrued interest and fees and are presented on the Consolidated Balance Sheets net of the Allowance for credit

losses. We continue to accrue interest and fee income on all accounts, except in limited circumstances, until the related balance and all related interest and fees are paid or charged-off.

We generally classify our Credit card and other loans as held for investment. We sell a majority of our credit card loans originated by Comenity Bank (CB) and by Comenity Capital Bank (CCB), to certain of our master securitization trusts (the Trusts), which are consolidated Variable Interest Entities (VIEs), and therefore these loans are restricted for securitization investors. New originations of Credit card and other loans are generally determined to be held for investment at origination because we have the intent and ability to hold them for the foreseeable future. In determining what constitutes the foreseeable future, we consider the average life and homogenous nature of our Credit card and other loans. In assessing whether our Credit card and other loans continue to be held for investment, we also consider capital levels and scheduled maturities of funding instruments used. The assertion regarding the intent and ability to hold Credit card and other loans for the foreseeable future can be made with a high degree of certainty given the maturity distribution of our direct-to-consumer (DTC or retail) deposits and other funding instruments; the demonstrated ability to replace maturing time-based deposits and other borrowings with new deposits or borrowings; and historic payment activity on Credit card and other loans. Due to the homogenous nature of our credit card loans, amounts are classified as held for investment on a brand partner portfolio basis. From time to time certain credit card loans are classified as held for sale, as determined on a brand partner portfolio or program basis. We carry held for sale loans at the lower of aggregate cost or fair value and continue to recognize finance charges on an accrual basis. Cash flows associated with Credit card and other loans originated or purchased for investment are classified as Cash flows from investing activities, regardless of any subsequent change in intent and ability.

ALLOWANCE FOR CREDIT LOSSES

Credit Card Loans

We use a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. We have evaluated multiple risk characteristics across our credit card loans portfolio, and determined delinquency status and overall credit quality to be the most significant characteristics for estimating expected credit losses. To estimate our Allowance for credit losses, we segment our credit card loans on the basis of delinquency status, credit quality risk score and product. These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. In determining the estimated life of our credit card loans, payments were applied to the measurement date balance with no payments allocated to future purchase activity. We use a combination of First In First Out and the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act) methodologies to model balance paydown.

SECURITIZATIONS

We account for transfers of financial assets as either sales or financings. Transfers of financial assets that are accounted for as a sale are removed from the Consolidated Balance Sheets with any realized gain or loss reflected in the Consolidated Statements of Income during the period in which the sale occurs. Transfers of financial assets that are not accounted for as a sale are treated as a financing.

We regularly securitize the majority of our credit card loans through the transfer of those loans to one of our Trusts. We perform the decision making for the Trusts, as well as servicing the cardholder accounts that generate the credit card loans held by the Trusts. In our capacity as a servicer, we administer the loans, collect payments and charge-off uncollectible balances. Servicing fees are earned by a subsidiary, which are eliminated in consolidation.

The Trusts are consolidated VIEs because they have insufficient equity at risk to finance their activities – the issuance of debt securities and notes, collateralized by the underlying credit card loans. Because we perform the decision making and servicing for the Trusts, we have the power to direct the activities that most significantly impact the Trusts’ economic performance (the collection of the underlying credit card loans). In addition, we hold all of the variable interests in the Trusts, with the exception of the liabilities held by third-parties. These variable interests provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to the Trusts. As a result of these considerations, we are deemed to be the primary beneficiary of the Trusts and therefore consolidate the Trusts.

The Trusts issue debt securities and notes, which are non-recourse to us. The collections on the securitized credit card loans held by the Trusts are available only for payment of those debt securities and notes, or other obligations arising in the securitization transactions. For our securitized credit card loans, during the initial phase of a securitization reinvestment period, we generally retain principal collections in exchange for the transfer of additional credit card loans into the securitized pool of assets. During the amortization or accumulation period of a securitization, the investors’ share of

principal collections (in certain cases, up to a maximum specified amount each month) is either distributed to the investors or held in an account until it accumulates to the total amount due, at which time it is paid to the investors in a lump sum.

INVESTMENT SECURITIES

For AFS debt securities in an unrealized loss position, any estimated credit losses are recognized in the Consolidated Statements of Income by establishing or adjusting an existing Allowance for credit losses for such losses. We typically

invest in highly-rated securities with low probabilities of default; therefore, we did not have an Allowance for credit losses as of March 31, 2026 and December 31, 2025, and did not recognize any credit losses for the periods presented. Any unrealized gains, or any portion of an AFS debt security’s non-credit-related unrealized losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. The gross unrealized losses on our AFS debt securities are primarily attributable to an increase in the current benchmark interest rate. Any realized gains and losses are recorded in Other non-interest expenses in the Consolidated Statements of Income upon disposition of the AFS debt security, using the specific identification method. Gains and losses on investments in equity securities and CRA-related equity method investments are recorded in Other non-interest expenses in the Consolidated Statements of Income.

EARNINGS PER COMMON SHARE

Basic earnings per share (EPS) is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Net income available to common stockholders reflects the deduction of dividends declared on our preferred stock. Diluted EPS reflects the assumed conversion of unvested restricted stock awards pursuant to the Treasury Stock method.

- Definition

Disclosure of accounting policy for investment in financial asset.

+ References + Details

INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment

The following table provides a summary of our Investments as of the dates presented:


	March 31, 2026		December 31, 2025
(Millions)
Investment securities
Available-for-sale debt securities	$	172	$	171
Equity securities	50		50
Total investment securities	222		221
Equity method and other investments	64		63
Total Investments	$	286	$	284

Schedule of Gain (loss) on Investments

The table below provides unrealized gains and losses on AFS debt securities as of the dates presented:


	March 31, 2026								December 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
(Millions)
Available-for-sale securities	$	190	$	—	$	(18)	$	172	$	189	$	—	$	(18)	$	171
Total	$	190	$	—	$	(18)	$	172	$	189	$	—	$	(18)	$	171

Schedule of Debt Securities in Gross Unrealized Loss Position

The following tables provide information about AFS debt securities in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position, as of the dates presented:


	March 31, 2026
	Less than 12 months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(Millions)
Available-for-sale securities	$	19	$	—	$	129	$	(18)	$	148	$	(18)
Total	$	19	$	—	$	129	$	(18)	$	148	$	(18)


	December 31, 2025
	Less than 12 months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(Millions)
Available-for-sale securities	$	—	$	—	$	135	$	(18)	$	135	$	(18)
Total	$	—	$	—	$	135	$	(18)	$	135	$	(18)

CREDIT CARD AND OTHER LOANS - Aging Analysis (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	$ 331	$ 325
Total
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	73	72
30 to 59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	24	24
60 to 89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	22	22
90 or more Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	27	26
Total Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	$ 258	$ 253

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Mar. 31, 2026

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of Changes In Each Component of Accumulated Comprehensive Loss Net of Tax Effects

The changes in each component of Accumulated other comprehensive loss, net of tax effects, are as follows for the periods presented:


Three Months Ended March 31, 2026	Net Unrealized Losses on AFS Securities		Net Unrealized Gains on Cash Flow Hedges		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive Loss
(Millions)
Balance as of December 31, 2025	$	(14)	$	1	$	(3)	$	(16)
Changes in other comprehensive loss	—		(1)		—		(1)
Balance as of March 31, 2026	$	(14)	$	—	$	(3)	$	(17)


Three Months Ended March 31, 2025	Net Unrealized Losses on AFS Securities		Net Unrealized Gains on Cash Flow Hedges		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive Loss
(Millions)
Balance as of December 31, 2024	$	(19)	$	—	$	(3)	$	(22)
Changes in other comprehensive income	2		1		—		3
Balance as of March 31, 2025	$	(17)	$	1	$	(3)	$	(19)

CREDIT CARD AND OTHER LOANS - Narrative (Details) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2026 USD ($) loan	Mar. 31, 2025 USD ($)	Dec. 31, 2025 USD ($) loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Re-aged accounts as percentage of total credit card and loan receivables	3.40%	3.50%
Number of days a loan is contractually past due before resulting in charge-off	30 days
Delinquency rate	5.59%		5.75%
Actual charge-offs for unpaid interest and fees	$ 226	$ 250
Net principal loss rate	7.33%	8.16%
Percentage of financing receivable outstanding (less than)	0.10%		0.10%
Unused credit card lines available to cardholders	$ 97,000		$ 98,000
Credit card loans held for sale \| loan	0		0
Credit card loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Maximum period of time temporary programs' concessions remain in place	12 months

REGULATORY MATTERS AND CAPITAL ADEQUACY (Tables)

3 Months Ended

Mar. 31, 2026

Regulated Operations [Abstract]

Schedule of Actual Capital Ratios And Minimum Ratios


	Ratio/Dollar Value						Minimum Ratio for Capital Adequacy Purposes *		Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions
(Millions, except percentages)	March 31, 2026			December 31, 2025
Total Company
Common equity tier 1 capital ratio (1)	13.3		%	13.0		%	4.5	%	N/A
Tier 1 capital ratio (2)	13.7			13.4			6.0		N/A
Total risk-based capital ratio (3)	16.9			16.8			8.0		N/A
Tier 1 leverage capital ratio (4)	12.1			12.4			4.0		N/A
Total risk-weighted assets (5)	$	19,352		$	19,755

Comenity Bank
Common equity tier 1 capital ratio (1)	15.1		%	15.1		%	4.5	%	6.5	%
Tier 1 capital ratio (2)	15.1			15.1			6.0		8.0
Total risk-based capital ratio (3)	16.5			16.5			8.0		10.0
Tier 1 leverage capital ratio (4)	13.5			14.1			4.0		5.0

Comenity Capital Bank
Common equity tier 1 capital ratio (1)	13.5		%	13.5		%	4.5	%	6.5	%
Tier 1 capital ratio (2)	14.1			14.1			6.0		8.0
Total risk-based capital ratio (3)	17.6			17.5			8.0		10.0
Tier 1 leverage capital ratio (4)	12.4			13.2			4.0		5.0

______________________________

*The listed capital adequacy ratios exclude the Capital Conservation Buffer.

(1)Common equity tier 1 capital ratio represents tier 1 capital reduced by Preferred stock divided by total risk-weighted assets. In the calculation of tier 1 capital, we follow the Basel III Standardized Approach and therefore Total stockholders’ equity has been reduced by Goodwill and intangible assets, net.

(2)Tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets. In the calculation of tier 1 capital, we follow the Basel III Standardized Approach and therefore Total stockholders’ equity has been reduced, primarily by Goodwill and intangible assets, net. For us, tier 1 capital is primarily comprised of CET1 capital and Preferred stock.

(3)Total risk-based capital ratio represents total capital divided by total risk-weighted assets. In the calculation of total capital, we follow the Basel III Standardized Approach and therefore tier 1 capital has been increased by tier 2 capital, which for us is comprised of subordinated notes, as well as the allowable portion of the Allowance for credit losses.

(4)Tier 1 leverage capital ratio represents tier 1 capital divided by total average assets, after certain adjustments.

(5)Total risk-weighted assets are generally measured by allocating assets, and specified off-balance sheet exposures, to various risk categories as defined by the Basel III Standardized Approach.

EARNINGS PER COMMON SHARE (Tables)

3 Months Ended

Mar. 31, 2026

Earnings Per Share [Abstract]

Schedule of Computation of Basic And Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the periods presented:


	Three Months Ended March 31,
	2026		2025
(Millions, except per share amounts)
Numerator
Income from continuing operations	$	181	$	142
Loss from discontinued operations, net of income taxes (1)	—		(4)
Net income	181		138
Less: Preferred stock dividends	(2)		—
Net income available to common stockholders	$	179	$	138

Denominator
Weighted average common stock outstanding – basic	42.8		49.0

Add: net effect of dilutive unvested restricted stock awards (2)	0.4		0.6

Weighted average common stock outstanding – diluted	43.2		49.6

Basic EPS
Income from continuing operations	$	4.19	$	2.89
Loss from discontinued operations	$	—	$	(0.08)
Net income per share	$	4.19	$	2.81

Diluted EPS
Income from continuing operations	$	4.15	$	2.86
Loss from discontinued operations	$	—	$	(0.08)
Net income per share	$	4.15	$	2.78

__________________________________

(1)Includes amounts that related to the previously disclosed discontinued operations associated with the spinoff of our former LoyaltyOne segment in 2021 and the sale of our former Epsilon segment in 2019. For additional information, refer to Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” to the unaudited Consolidated Financial Statements.

(2)As the effect would have been anti-dilutive, for the three months ended March 31, 2026 and 2025, zero and approximately 0.8 million, respectively, restricted stock awards were excluded from the calculation of weighted average dilutive common shares.

CREDIT CARD AND OTHER LOANS

3 Months Ended

Mar. 31, 2026

Receivables [Abstract]

CREDIT CARD AND OTHER LOANS

losses. We continue to accrue interest and fee income on all accounts, except in limited circumstances, until the related balance and all related interest and fees are paid or charged-off.

The following table provides Credit card and other loans, as of the dates presented:


	March 31, 2026		December 31, 2025
(Millions)
Credit card loans	$	17,656	$	18,417
Other loans	479		388
Total credit card and other loans (1)(2)	18,135		18,805
Less: Allowance for credit losses	(2,078)		(2,106)
Credit card and other loans, net	$	16,057	$	16,699

__________________________________

(1)Includes $10.1 billion and $10.7 billion of Credit card and other loans available to settle obligations of consolidated VIEs as of March 31, 2026 and December 31, 2025, respectively.

(2)Includes $382 million and $378 million, of accrued interest and fees that have not yet been billed to cardholders as of March 31, 2026 and December 31, 2025, respectively.

Credit Card and Other Loans Aging

The following table provides the delinquency trends of our Credit card and other loans portfolio, based on the amortized cost, as of the dates presented:


	Aging Analysis of Delinquent Amortized Cost Credit Card and Other Loans (1)
	30 to 59 Days Past Due		60 to 89 Days Past Due		90 or more Days Past Due		Total		Total Current		Total
(Millions)
March 31, 2026	$	325	$	266	$	634	$	1,225	$	16,485	$	17,710

December 31, 2025	$	359	$	282	$	676	$	1,317	$	17,076	$	18,393

__________________________________

(1)Other loans delinquencies have been included with credit card loan delinquencies in the table above, as amounts were insignificant as of each period presented. As permitted by GAAP, the primary difference between the amortized cost basis included in the table above and the carrying value of our Credit card and other loans relates to the exclusion of unbilled finance charges and fees from the amortized cost basis. As of March 31, 2026 and December 31, 2025, accrued interest and fees that have not yet been billed to

cardholders were $382 million and $378 million, respectively, included in Credit card and other loans on the Consolidated Balance Sheets.

From time to time we may re-age cardholders’ accounts, with the intent of assisting delinquent cardholders who have experienced financial difficulties but who demonstrate both an ability and willingness to repay the amounts due. This practice affects credit card loan delinquencies and principal losses. Accounts meeting specific defined criteria are re-aged when the cardholder makes one or more consecutive payments aggregating to a certain pre-defined amount of their account balance. Upon re-aging, the outstanding balance of a delinquent account is returned to current status. Our re-aged accounts as a percentage of Total credit card and other loans represented 3.4% and 3.5% for the three months ended March 31, 2026 and 2025, respectively. Our re-aging practices comply with regulatory guidelines.

Credit Quality Indicators for Our Credit Card and Other Loans

Given the nature of our business, the credit quality of our assets, in particular our Credit card and other loans, is a key determinant underlying our ongoing financial performance and overall financial condition. When it comes to our Credit card and other loans portfolio, we closely monitor Delinquency rates and Net principal loss rates, which reflect, among other factors, our underwriting, the inherent credit risk in our portfolio and the success of our collection and recovery efforts. These rates also reflect, more broadly, the general macroeconomic conditions, including the compounding effect of persistent inflation relative to wage growth, and higher interest rates. Our Delinquency rates and Net principal loss rates are also impacted by the size of our Credit card and other loans portfolio, which serves as the denominator in the calculation of these rates. Accordingly, changes in the size of our portfolio (whether due to credit tightening, acquisitions or dispositions of portfolios, or otherwise) may cause movements in our Delinquency and Net principal loss rates that are not necessarily indicative of the underlying credit quality of the overall portfolio.

Delinquencies: An account is contractually delinquent if we do not receive the minimum payment due by the specified due date. Our policy is to continue to accrue interest and fee income on all accounts, except in limited circumstances, until the balance and all related interest and fees are paid or charged-off. After an account becomes 30 days past due, a proprietary collection scoring algorithm automatically scores the risk of the account becoming further delinquent; based upon the level of risk indicated, a collection strategy is deployed, which may include tech-enabled, targeted collections strategies to engage with cardholders in the most efficient communication channel. If after exhausting all in-house collection efforts we are unable to collect on the account, we may engage collection agencies or outside attorneys to continue those efforts, or sell the charged-off balances.

The Delinquency rate is calculated by dividing outstanding principal balances that are contractually delinquent (i.e., principal balances 30 days past due or more) as of the end of the period, by the outstanding principal amount of Credit card and other loans as of the same period-end. As of March 31, 2026 and December 31, 2025 our Delinquency rates were 5.59% and 5.75%, respectively.

Net Principal Losses: Our net principal losses include the principal amount of Credit card and other loans that are deemed uncollectible, less recoveries, and exclude charged-off interest, fees and third-party fraud losses (including synthetic fraud). Charged-off interest and fees reduce Interest and fees on loans, while third-party fraud losses are recorded in Card and processing expenses. Our credit card loans, including unpaid interest and fees, are generally charged-off in the month during which an account becomes 180 days past due. Our pay-over-time products, which include installment loans and “split-pay” offerings, including unpaid interest, are generally charged-off when a loan becomes 120 days past due. However, in the case of a customer bankruptcy or death, Credit card and other loans, including unpaid interest and fees, as applicable, are charged-off 60 days after receipt of the notification of the bankruptcy or death, but in any case no later than 180 days past due for credit card loans and 120 days past due for installment loans and “split-pay” offerings. We record the actual losses for unpaid interest and fees as a reduction to Interest and fees on loans, which were $226 million and $250 million for the three months ended March 31, 2026 and 2025, respectively.

The Net principal loss rate is calculated by dividing net principal losses for the period by the Average credit card and other loans for the same period, using an average daily balance calculation methodology. For the three months ended March 31, 2026 and 2025, our Net principal loss rates were 7.33% and 8.16%, respectively.

Overall Credit Quality: As part of our credit risk management activities for our Credit card and other loans portfolio, we assess overall credit quality by reviewing information from credit bureaus and other sources relating to our cardholders’ broader credit performance. We utilize VantageScore (Vantage) credit scores to assist in our assessment of credit quality. Vantage credit scores are obtained at origination of the account and, for credit card loans, are refreshed monthly thereafter to assist in predicting customer behavior. We categorize these Vantage credit scores into the following three credit score ranges: (i) 651 or higher have the lowest credit risk; (ii) 591 to 650 are considered to have moderate credit risk; and (iii) 590 or lower have the highest credit risk. In certain limited circumstances there are customer accounts for which a Vantage score is not available and we use alternative sources to assess credit risk and predict behavior. The table below excludes less than 0.1% of the total credit card loans and total other loans balances as of both March 31, 2026 and December 31, 2025, representing those customer accounts for which a Vantage credit score is not available. The following table reflects the distribution of credit card and other loans by Vantage score as of the dates presented:


	March 31, 2026						December 31, 2025
	651 or Higher		591 to 650		590 or Lower		651 or Higher		591 to 650		590 or Lower
Credit card loans	64	%	24	%	12	%	64	%	23	%	13	%
Other loans (1)	92	%	8	%	—	%	90	%	9	%	1	%

__________________________________

(1)Represents Vantage score distribution for our pay-over-time products that had an amortized cost basis of $447 million and $365 million as of March 31, 2026 and December 31, 2025, respectively.

Modified Credit Card Loans

Consumer Relief Programs

As part of our collections strategy, we may offer temporary and short term programs in order to improve the likelihood of collections and meet the needs of our customers. Our modifications, for customers who have requested assistance and meet certain qualifying requirements, come in the form of reduced payment requirements, interest rate reductions and late fee waivers. We do not offer programs involving the forgiveness of principal. These temporary loan modifications may assist in cases where we believe the customer will recover from the short-term hardship and resume scheduled payments. Under these consumer relief programs, those accounts receiving relief may not advance to the next delinquency cycle, including charge-off, in the same time frame that would have occurred had the relief not been granted. We evaluate our consumer relief programs to determine if they represent a more than insignificant delay in payment granted to borrowers experiencing financial difficulty, in which case they would then be considered a Loan Modification. Loans in these short term programs that are determined to be Loan Modifications, will be included as such in the disclosure below. We do not offer Loan Modifications on our Other loans (i.e., our pay-over-time products).

Credit Card Loans – Modifications for Borrowers Experiencing Financial Difficulty (Loan Modifications)

In instances where cardholders are experiencing financial difficulty, we may modify our credit card loans with the intention of minimizing losses and improving collectability, while providing cardholders with financial relief; such credit card loans are classified as Loan Modifications, exclusive of the temporary, short-term consumer relief programs described above. Loan Modifications include concessions consisting primarily of a reduced minimum payment, late fee waiver, and/or an interest rate reduction. The majority of concessions remain in place for a period no longer than 12 months; however, for certain modifications the concessions remain in place through the payoff of the credit card loans if the cardholder complies with the terms of the program.

Loan Modification concessions do not include the forgiveness of unpaid principal, but may involve the reversal of certain unpaid interest or fee assessments, and the cardholder’s ability to make future purchases is either limited or suspended until the cardholder successfully exits from the modification program. In accordance with the terms of our workout programs, the credit agreement reverts back to its original contractual terms (including the contractual interest rate) when the customer exits the program, which is either when all payments have been made in accordance with the program, or when the customer defaults out of the program.

Loan Modifications are collectively evaluated for impairment on a pooled basis in measuring the appropriate Allowance for credit losses. The following table provides information relating to credit card loans to borrowers experiencing financial difficulty that were granted a concession under a Loan Modification program during the periods presented:


	Three Months Ended March 31,
	2026			2025
(Millions, except percentages)
Account balance (1)	$	113		$	101
% of Total credit card loans	0.7		%	0.6		%
Weighted average interest rate reduction (% points)	23.8		%	22.8		%

__________________________________

(1)Represents the outstanding balances as of March 31, 2026 and 2025, of all Loan Modifications undertaken in the past three months, respectively, for credit card loans that remain in modification programs as of March 31, 2026 and 2025, respectively. The outstanding balances include principal, accrued interest and fees.

Interest income on these impaired credit card loans is accounted for in the same manner as non-impaired credit card loans, and cash collections are allocated according to the same payment hierarchy methodology applied for credit card loans not in Loan Modification programs.

The following table provides the performance of our credit card loans that were modified within the 12 months prior to the dates presented and remain in a Loan Modification program as of the dates presented:


	Aging Analysis of Delinquent Amortized Cost Loan Modifications - Credit Card Loans
	30 to 59 Days Past Due		60 to 89 Days Past Due		90 or more Days Past Due		Total		Total Current		Total
(Millions)
March 31, 2026	$	24	$	22	$	27	$	73	$	258	$	331

December 31, 2025	$	24	$	22	$	26	$	72	$	253	$	325

The following table provides additional information regarding credit card Loan Modifications that have subsequently defaulted within 12 months of their modification dates, for the periods presented; the probability of default is factored into the Allowance for credit losses:


	Three Months Ended March 31,
	2026		2025
(Millions, except for Number of modifications)
Number of modifications	7,433		7,806
Outstanding balance	$	15	$	15

Unfunded Lending Commitments

We manage potential credit risk in unfunded lending commitments by reviewing each potential customer’s credit application and evaluating the applicant’s financial history and ability and perceived willingness to repay. Credit card loans are made primarily on an unsecured basis, and our Cardholders reside throughout the U.S. and are not significantly concentrated in any one geographic area.

We manage our potential risk in credit commitments by limiting the total amount of credit, both by individual customer and across our credit card loan portfolio, by monitoring the size and maturity of our loan portfolio and applying consistent risk-based underwriting standards reflective of current and anticipated macroeconomic conditions. We have the unilateral ability to cancel or reduce unused credit card lines at any time. Unused credit card lines available to cardholders totaled approximately $97 billion and $98 billion as of March 31, 2026 and December 31, 2025, respectively. While this amount

represented the total available unused credit card lines, we have not experienced and do not anticipate that all cardholders will access their entire available line at any given point in time.

Portfolio Sales

As of March 31, 2026 and December 31, 2025, there were no credit card loans held for sale.

Portfolio Acquisitions

During the three months ended March 31, 2026 and March 31, 2025, we did not acquire any credit card loan portfolios.

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES (Tables)

3 Months Ended

Mar. 31, 2026

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES

Schedule of Components of Other Non-interest Income

The following table provides the components of Other non-interest income for the periods presented:


	Three Months Ended March 31,
	2026		2025
(Millions)
Payment protection products	$	36	$	29
Paper statement fees	21		18
Other	1		—
Total other non-interest income	$	58	$	47

Schedule of Components of Other Non-interest Expenses

The following table provides the components of Other non-interest expenses for the periods presented:


	Three Months Ended March 31,
	2026		2025
(Millions)
Professional services and regulatory fees	$	28	$	29
Occupancy expense	5		5

Other (1)	9		9
Total other non-interest expenses	$	42	$	43

__________________________________

(1)Primarily related to costs associated with various other individually insignificant operating activities.

CREDIT CARD AND OTHER LOANS - Credit Quality on Amortized Cost Basis (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Financing Receivable, Credit Quality Indicator [Line Items]
Percentage of financing receivable outstanding	0.10%	0.10%
Receivables	$ 17,710	$ 18,393
Credit card loans \| 651 or Higher \| No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Percentage of financing receivable outstanding	64.00%	64.00%
Credit card loans \| 591 to 650 \| No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Percentage of financing receivable outstanding	24.00%	23.00%
Credit card loans \| 590 or Lower \| No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Percentage of financing receivable outstanding	12.00%	13.00%
Other loans
Financing Receivable, Credit Quality Indicator [Line Items]
Receivables	$ 447	$ 365
Other loans \| 651 or Higher \| No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Percentage of financing receivable outstanding	92.00%	90.00%
Other loans \| 591 to 650 \| No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Percentage of financing receivable outstanding	8.00%	9.00%
Other loans \| 590 or Lower \| No Score
Financing Receivable, Credit Quality Indicator [Line Items]
Percentage of financing receivable outstanding	0.00%	1.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479294/326-20-55-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479294/326-20-55-12

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479294/326-20-55-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 12
-Subparagraph (d)(4)
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- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

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+ Details

ALLOWANCE FOR CREDIT LOSSES - Rollforward (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 2,106	$ 2,241
Provision for credit losses	303	296
Net principal losses	(331)	(365)
Ending balance	2,078	2,172
Recovery	$ 89	$ 96

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

SECURITIZATIONS (Tables)

3 Months Ended

Mar. 31, 2026

Securitizations [Abstract]

Schedule of Securitized Credit Card Loans and Related Delinquencies and Net Principal Losses

The following tables provide the total securitized credit card loans, and related delinquencies and net principal losses of securitized credit card loans, for the periods presented:


	March 31, 2026		December 31, 2025
(Millions)
Total credit card loans – available to settle obligations of consolidated VIEs	$	10,091	$	10,708
Of which: principal amount of credit card loans 90 days or more past due	$	235	$	257


	Three Months Ended March 31,
	2026		2025
(Millions)
Net principal losses of securitized credit card loans	$	174	$	215

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 15	$ 13
Service-based restricted stock unit awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares granted (in shares)	632,791
Weighted average grant-date fair value (in dollars per share)	$ 73.04
Award vesting period	3 years
Performance-based restricted stock unit awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares granted (in shares)	169,462
Weighted average grant-date fair value (in dollars per share)	$ 73.16
Performance-based restricted stock unit awards \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Percentage of stock units to vest	0.00%
Performance-based restricted stock unit awards \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Percentage of stock units to vest	160.00%

PREFERRED STOCK AND COMMON STOCK - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Apr. 23, 2026
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Preferred stock, dividends declared (in dollars per share)	$ 26.35	$ 0
Preferred stock, dividend paid	$ 2
Common stock, dividends declared (in dollars per share)	$ 0.23	$ 0.21
Common stock, dividends paid	$ 10
Subsequent Event \| O2026 Q2 Preferred Dividends
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Cash dividend (usd per share)			$ 21.56
Subsequent Event \| O2026 Q2 Common Dividends
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Cash dividend (usd per share)			$ 0.23

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2026 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Ralph Andretta [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On February 27, 2026, Ralph Andretta, our President and Chief Executive Officer, entered into a Rule 10b5-1 trading arrangement, as defined in Item 408(a) of Regulation S-K, providing for the sale from time to time of an aggregate of up to 15,000 shares of our common stock. The duration of the trading arrangement is until December 31, 2026 or earlier if all transactions under the trading arrangement are completed.
Name	Ralph Andretta
Title	President and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 27, 2026
Expiration Date	December 31, 2026
Arrangement Duration	307 days
Aggregate Available	15,000

CREDIT CARD AND OTHER LOANS - Amortized Cost Basis Credit Card and Loan Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	$ 17,710	$ 18,393
Unbilled to cardholders	382	378
Total
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	1,225	1,317
30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	325	359
60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	266	282
90 or more Days Past Due
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	634	676
Total Current
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	$ 16,485	$ 17,076

- Definition

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+ Details

- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

+ References

+ Details

PREFERRED STOCK AND COMMON STOCK - Stock Repurchase Programs (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Feb. 28, 2026	Mar. 31, 2026	Dec. 31, 2025
Stockholders' Equity Note [Abstract]
Amount Authorized for Repurchase		$ 600
Number of shares repurchased (in shares)		2.0
Approximate Dollar Value of Shares Repurchased		$ 150
Amount Remaining for Future Repurchases		$ 690	$ 240
Termination of Capped Call transactions (in shares)	1.5

INVESTMENTS - Narrative (Details) - USD ($)	3 Months Ended
INVESTMENTS - Narrative (Details) - USD ($)	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Debt Securities, Available-for-Sale [Line Items]
AFS Allowance for credit losses	$ 0		$ 0
Gains or losses from the sale of AFS securities	0	$ 0
Collateralized Mortgage-Backed Securities
Debt Securities, Available-for-Sale [Line Items]
Available-for-sale, mortgage-backed securities with no stated maturities, amortized cost	160,000,000		160,000,000
Available-for-sale, mortgage-backed securities with no stated maturities, fair value	$ 145,000,000		$ 145,000,000
Weighted average yield (as a percent)	3.29%		3.29%
Municipal Bonds
Debt Securities, Available-for-Sale [Line Items]
Weighted average yield (as a percent)	3.83%		3.83%
Available-for-sale, mortgage-backed securities with stated maturities after ten years, amortized cost	$ 30,000,000		$ 30,000,000
Available-for-sale, mortgage-backed securities with stated maturities after ten years, fair value	$ 27,000,000		$ 27,000,000

STOCK-BASED COMPENSATION	3 Months Ended
STOCK-BASED COMPENSATION	Mar. 31, 2026
Stockholders' Equity Note [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION During the three months ended March 31, 2026, we awarded 632,791 service-based restricted stock units (RSUs) with a weighted average grant date fair market value per share of $73.04 as determined on the date of grant. Service-based restricted stock units typically vest ratably over three years provided that the participant is employed by us on each such vesting date. During the three months ended March 31, 2026, we awarded 169,462 performance-based restricted stock units with a fair market value of approximately $73.16. Performance-based RSUs cliff vest at the end of three years, if specific performance measures tied to our financial performance are met. For the performance-based RSUs awarded in 2026, the predefined vesting criteria permit a range from 0% to 160% to be earned, subject to a market-based condition. Accruals of compensation cost for an award with a performance condition are based on the probable outcome of that performance condition. If the performance targets are met, these awards will vest with respect to the entire award on February 17, 2029, provided that the participant is employed by us on the vesting date (subject to certain limited exceptions, such as death, disability and qualifying retirements). For the three months ended March 31, 2026 and 2025, we recognized $15 million and $13 million in stock-based compensation expense, respectively.

CREDIT CARD AND OTHER LOANS - Troubled Debt Restructurings (Details) - Consumer Portfolio Segment - Troubled debt restructurings that subsequently defaulted - credit card and loan receivables $ in Millions	3 Months Ended
	Mar. 31, 2026 USD ($) modification	Mar. 31, 2025 USD ($) modification
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of modifications \| modification	7,433,000,000	7,806,000,000
Outstanding balance \| $	$ 15	$ 15

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value of Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Financial assets
Credit card and other loans, net	$ 18,084	$ 18,747
Investment securities	222	221
Financial liabilities
Deposits	14,075	13,928
Debt issued by consolidated VIEs	3,054	3,442
Carrying Amount
Financial assets
Credit card and other loans, net	16,057	16,699
Investment securities	222	221
Financial liabilities
Deposits	14,073	13,916
Debt issued by consolidated VIEs	3,041	3,422
Long-term and other debt	837	886
Fair Value
Financial assets
Credit card and other loans, net	18,084	18,747
Investment securities	222	221
Financial liabilities
Deposits	14,075	13,928
Debt issued by consolidated VIEs	3,054	3,442
Long-term and other debt	$ 851	$ 931

- Definition

Fair value portion of investment securities, including, but not limited to, marketable securities, derivative financial instruments, and investments accounted for under the equity method.

+ References + Details

- Definition

The fair value amount of long-term debt whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission.

+ References

+ Details

DEPOSITS - Deposits by Type (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Deposit Liability [Line Items]
Certificates of deposit	$ 6,037
Cardholder credit balances	25	$ 25
Total deposits	14,073	13,916
Direct-to-consumer (retail)
Deposit Liability [Line Items]
Savings accounts	4,738	4,329
Certificates of deposit	3,970	4,193
Wholesale
Deposit Liability [Line Items]
Savings accounts	3,273	3,371
Certificates of deposit	2,067	1,998
Cardholder credit balances
Deposit Liability [Line Items]
Cardholder credit balances	$ 25	$ 25

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES - Components of Other Non-Interest Expenses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Other Noninterest Expenses [Abstract]
Professional services and regulatory fees	$ 28	$ 29
Occupancy expense	5	5
Other	9	9
Total other non-interest expenses	$ 42	$ 43

INVESTMENTS - Continuous Loss Position (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]
Less than 12 months, Fair Value	$ 19	$ 0
Less than 12 months, Unrealized Losses	0	0
12 Months or Greater, Fair Value	129	135
12 Months or Greater, Unrealized Losses	(18)	(18)
Fair Value	148	135
Unrealized Losses	$ (18)	$ (18)

FAIR VALUES OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

FAIR VALUES OF FINANCIAL INSTRUMENTS

Fair value is defined under GAAP as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; with such a transaction based on the principal market, or in the absence of a principal market the most advantageous market for the specific instrument. GAAP provides for a three-level fair value hierarchy that classifies the inputs to valuation techniques used to measure fair value, defined as follows:

Level 1: Inputs that are unadjusted quoted prices for identical assets or liabilities in active markets that the entity can access.

Level 2: Inputs, other than those included within Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, or inputs other than quoted prices that are observable for the asset or liability.

Level 3: Inputs that are unobservable (e.g., internally derived assumptions) and reflect an entity’s assumptions about estimates market participants would use in pricing the asset or liability based on the best information available under the circumstances. In particular, Level 3 inputs and valuation techniques involve judgment and as a result are not necessarily indicative of amounts we would realize in a current market exchange. The use of different assumptions or estimation techniques may have a material effect on the estimated fair value amounts.

We monitor the market conditions and evaluate the fair value hierarchy levels at least quarterly. For the three months ended March 31, 2026 and 2025, there were no transfers into or out of Level 3, and no transfers between Levels 1 and 2.

The following table summarizes the carrying values and fair values of our financial assets and financial liabilities as of the dates presented:


	March 31, 2026				December 31, 2025
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
(Millions)
Financial assets
Credit card and other loans, net	$	16,057	$	18,084	$	16,699	$	18,747
Investment securities	222		222		221		221
Financial liabilities
Deposits	14,073		14,075		13,916		13,928
Debt issued by consolidated VIEs	3,041		3,054		3,422		3,442
Long-term and other debt	$	837	$	851	$	886	$	931

Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities

Credit card and other loans, net: Our Credit card and other loans are recorded at amortized cost, less the Allowance for credit losses, on the Consolidated Balance Sheets. In estimating the fair values, we use a discounted cash flow model (i.e., Level 3 inputs), primarily because a comparable whole loan sales market for similar loans does not exist, and therefore there is a lack of observable pricing inputs. We use various internally derived inputs, including projected income, discount rates and forecasted charge-offs. Economic value attributable to future loans generated by the cardholder accounts is not included in the fair values.

Investment securities: Investment securities consist of AFS debt securities, including both mortgage-backed securities and municipal bonds, as well as equity securities, which are mutual funds, and are recorded at fair value on the Consolidated Balance Sheets. Quoted prices of identical or similar investment securities in active markets are used to estimate the fair values (i.e., Level 1 or Level 2 inputs).

Derivative assets and liabilities: We use derivatives to manage our interest rate and foreign currency risk exposures. When quoted market prices are available and used to value our derivatives, we classify them as Level 1. However, the majority of our derivatives do not have readily available quoted market prices. Therefore, we value most of our derivatives using vendor-based models. We primarily rely on market observable inputs for these models, including, for example, interest rate yield curves and currency rates. These inputs can vary depending on the type of derivatives and nature of the underlying rate, price or index upon which the value of the derivative is based. We typically classify derivatives as Level 2 as significant inputs can be observed in a liquid market and the underlying model itself does not require significant judgment. At least annually, we reaffirm our understanding of the valuation techniques applied in our vendor-based models and validate the valuation output on a quarterly basis. Our derivatives are included in Other assets or Other liabilities on the Consolidated Balance Sheets. The fair value impacts of our derivative assets and liabilities were insignificant to the Consolidated Financial Statements for the periods presented on both a gross basis and, where applicable, a net basis.

Deposits: Money market and other non-maturity deposits carrying values approximate their fair values because they are short-term in duration and have no defined maturity. GAAP requires that the fair values of deposit liabilities with no stated maturities equal their carrying values and does not permit recognition of the inherent funding value of the instruments. Certificates of deposit are recorded at their historical issuance cost on the Consolidated Balance Sheets, adjusted for unamortized fees, with the fair value being estimated based on the currently observable market rates available to us for similar deposits with similar remaining maturities (i.e., Level 2 inputs). Interest payable is included within Other liabilities on the Consolidated Balance Sheets.

Debt issued by consolidated VIEs: We record Debt issued by our consolidated VIEs at amortized cost (including unamortized fees, issuance costs, premiums and discounts, where applicable) on the Consolidated Balance Sheets. Fair value is estimated based on the currently observable market rates available to us for similar debt instruments with similar remaining maturities or quoted market prices for the same transaction (i.e., Level 2 inputs). Interest payable is included within Other liabilities on the Consolidated Balance Sheets.

Long-term and other debt: We record Long-term and other debt at amortized cost (including unamortized fees, issuance costs, premiums and discounts, where applicable) on the Consolidated Balance Sheets. Fair value is estimated based on the currently observable market rates available to us for similar debt instruments with similar remaining maturities, or quoted market prices for the same transaction (i.e., Level 2 inputs). Interest payable is included within Other liabilities on the Consolidated Balance Sheets.

Financial Instruments Measured at Fair Value on a Recurring Basis

The following tables summarize our financial instruments measured at fair value on a recurring basis, categorized by the fair value hierarchy described in the preceding paragraphs, as of the dates presented:


	March 31, 2026
	Total		Level 1		Level 2		Level 3
(Millions)
Investment securities	$	222	$	50	$	172	$	—
Total assets measured at fair value	$	222	$	50	$	172	$	—


	December 31, 2025
	Total		Level 1		Level 2		Level 3
(Millions)
Investment securities	$	221	$	50	$	171	$	—
Total assets measured at fair value	$	221	$	50	$	171	$	—

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are recognized or disclosed at fair value on a nonrecurring basis, including equity method investments, property and equipment, right-of-use assets, deferred contract costs, goodwill and intangible assets. These assets are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances, such as upon impairment. We did not have any impairments for the three months ended March 31, 2026 and 2025.

Financial Instruments Disclosed but Not Carried at Fair Value

The fair values of financial instruments that are measured at amortized cost are estimates, and require management’s judgment; therefore, these fair value estimates may not be indicative of future fair values, nor can our fair value be estimated by aggregating all of the amounts presented. The following tables summarize our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of the dates presented:


	March 31, 2026
	Fair Value		Level 1		Level 2		Level 3
(Millions)
Financial assets
Credit card and other loans, net	$	18,084	$	—	$	—	$	18,084
Total	$	18,084	$	—	$	—	$	18,084

Financial liabilities
Deposits	$	14,075	$	—	$	14,075	$	—
Debt issued by consolidated VIEs	3,054		—		3,054		—
Long-term and other debt	851		—		851		—
Total	$	17,980	$	—	$	17,980	$	—


	December 31, 2025
	Fair Value		Level 1		Level 2		Level 3
(Millions)
Financial assets
Credit card and other loans, net	$	18,747	$	—	$	—	$	18,747
Total	$	18,747	$	—	$	—	$	18,747

Financial liabilities
Deposits	$	13,928	$	—	$	13,928	$	—
Debt issued by consolidated VIEs	3,442		—		3,442		—
Long-term and other debt	931		—		931		—
Total	$	18,301	$	—	$	18,301	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2026	Apr. 22, 2026
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2026
Document Transition Report	false
Entity File Number	001-15749
Entity Registrant Name	BREAD FINANCIAL HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1429215
Entity Address, Address Line One	3095 Loyalty Circle
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43219
City Area Code	614
Local Phone Number	729-4000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		40,407,065
Entity Central Index Key	0001101215
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	BFH
Security Exchange Name	NYSE
Series A 8.625% Non-Cumulative Perpetual Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, Each Representing a 1/40th Interest in a Share of 8.625% Non-Cumulative Perpetual Preferred Stock, Series A
Trading Symbol	BFH PrA
Security Exchange Name	NYSE

INVESTMENTS - Investments (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]
Available-for-sale debt securities	$ 172	$ 171
Equity securities	50	50
Total investment securities	222	221
Equity method and other investments	64	63
Total Investments	$ 286	$ 284

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

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+ Details

- Definition

Amount of investment in equity security measured at fair value with change in fair value recognized in net income (FV-NI).

+ References

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+ Details

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Mar. 31, 2026

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in each component of Accumulated other comprehensive loss, net of tax effects, are as follows for the periods presented:


Three Months Ended March 31, 2026	Net Unrealized Losses on AFS Securities		Net Unrealized Gains on Cash Flow Hedges		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive Loss
(Millions)
Balance as of December 31, 2025	$	(14)	$	1	$	(3)	$	(16)
Changes in other comprehensive loss	—		(1)		—		(1)
Balance as of March 31, 2026	$	(14)	$	—	$	(3)	$	(17)


Three Months Ended March 31, 2025	Net Unrealized Losses on AFS Securities		Net Unrealized Gains on Cash Flow Hedges		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive Loss
(Millions)
Balance as of December 31, 2024	$	(19)	$	—	$	(3)	$	(22)
Changes in other comprehensive income	2		1		—		3
Balance as of March 31, 2025	$	(17)	$	1	$	(3)	$	(19)

INVESTMENTS - Amortized Cost (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]
Amortized Cost	$ 190	$ 189
Unrealized Gains	0	0
Unrealized Losses	(18)	(18)
Fair Value	$ 172	$ 171

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

+ Details

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time we are subject to various lawsuits, claims, disputes, or potential claims or disputes, and other proceedings, arising in the ordinary course of business that we believe, based on our current knowledge, will not have a material adverse effect on our business, consolidated financial condition or liquidity, including claims and lawsuits alleging breaches of our contractual obligations, arbitrations, class actions and other litigation, arising in connection with our business activities. However, in light of the uncertainties involved in such matters, including the fact that some pending legal proceedings are at preliminary stages or seek an indeterminate amount of damages, penalties or fines, it is possible that the outcome of legal proceedings could have a material impact on our results of operations. Certain legal proceedings involving us or our subsidiaries are described further below. On February 20, 2024, we and our general counsel were named as defendants in an adversary proceeding filed by the liquidating trustee in LVI’s Chapter 11 bankruptcy case in the United States Bankruptcy Court for the Southern District of Texas, captioned Pirinate Consulting Group, LLC v. Bread Financial Holdings, Inc., Case No. 24-03027 (Bankr. S.D. Tex.), alleging actual and constructive fraudulent transfers, among other claims, in connection with our spinoff of LVI. Also on February 20, 2024, the liquidating trustee filed an action in the United States District Court for the District of Delaware against us, each of the members of our Board of Directors at the time of the spinoff, and certain members of our management team, captioned Pirinate Consulting Group, LLC v. Bread Financial Holdings, Inc., Case No. 24-cv-00226-RGA (D. Del.), alleging certain breaches of fiduciary duties (and aiding and abetting breaches of fiduciary duties) in connection with the spinoff. Subsequently, the liquidating trustee voluntarily dismissed without prejudice the complaint in the District of Delaware and commenced on March 20, 2024 a substantially similar action in Delaware Chancery Court, captioned Pirinate Consulting Group, LLC v. Bread Financial Holdings, Inc., Case No. 2024-0277-MTZ (Del. Ch.), against the same parties and asserting the same claims. Among other things, in each of the Texas and Delaware actions, the liquidating trustee seeks damages in the amount of approximately $750 million plus interest, fees and expenses. In the Texas action, the United States Bankruptcy Court permitted certain of the claims to move past a motion to dismiss, and on January 22, 2026, the Court denied our motion for partial summary judgment on other claims; we are appealing that decision to the United States District Court for the Southern District of Texas. We and certain current and former members of our management team have also been named as defendants in other litigation matters relating to the LVI spinoff. LoyaltyOne, Co. (the LVI subsidiary that operated its Canadian AIR MILES business) filed suit against us and our general counsel in the Ontario Superior Court of Justice in Canada on October 18, 2023, in an action captioned LoyaltyOne, Co. v. Bread Financial Holdings, Inc. et al. The lawsuit asserts that our general counsel, in his capacity as a pre-spinoff director of LoyaltyOne, Co., breached various fiduciary duties owed to LoyaltyOne, Co. in connection with the LVI spinoff and certain other transactions, and that Bread Financial assisted in and benefited from those breaches. The lawsuit seeks damages in the amount of $775 million. LoyaltyOne, Co. is also contesting our entitlement to certain potential tax refunds under the tax matters agreement, in proceedings pursuant to the Canadian Companies’ Creditors Arrangement Act in the Commercial List of the Ontario Superior Court of Justice, captioned In re Matter of a Plan of Compromise or Arrangement of LoyaltyOne, Co., Case No. CV-23-00696017-00CL (the Tax Matters Dispute). In July 2024, the judge presiding over the Tax Matters Dispute issued an order in our favor, and LoyaltyOne, Co. filed a motion for leave to appeal that order, which motion was dismissed by the Court of Appeal for Ontario in March 2025. LoyaltyOne, Co. has indicated that it will continue to seek to contest our entitlement to these potential tax refunds. In March 2026, certain creditors of LVI sought a temporary stay of these Canadian proceedings pending final resolution of the tax refund-related claims in the U.S. litigation filed by the liquidating trustee, and the Ontario Superior Court of Justice granted an interim one-year stay up to and including March 8, 2027, subject to the right of any interested party to bring a motion prior to that date to lift or vary the stay. Finally, on April 27, 2023, we and certain current and former members of our management team were named as defendants in a putative federal securities class action filed in the United States District Court for the Southern District of Ohio, captioned Newtyn Partners, LP v. Alliance Data Systems n/k/a Bread Financial Holdings, Inc., Case No. 23-cv-1451-EAS (S.D. Ohio), concerning disclosures made about LVI’s business prior to the spinoff. The lead plaintiff in this matter filed an amended complaint on March 21, 2024. In March 2025, the United States District Court for the Southern District of Ohio granted our and the other defendants’ motions to dismiss in full and with prejudice; the court entered judgment in favor of all defendants and terminated the case. The plaintiffs appealed the District Court’s ruling in the Newtyn Partners matter, and the United States Court of Appeals for the Sixth Circuit affirmed the dismissal of the suit in January 2026. In all these actions related to the spinoff, we believe the allegations contained in the complaints are without merit and intend to defend the cases. We cannot predict at this point the length of time that these actions will be ongoing or the liability, if any, which may arise therefrom. Some matters pending against us specify the damages sought, others seek an unspecified amount of damages or are at very early stages of the legal process. In matters where the amount of damages claimed against us are stated, the claimed amount may be exaggerated and/or unsupported. While some matters have not yet progressed sufficiently through discovery or have had development of important factual information and legal issues to enable us to estimate an amount of loss or a range of possible loss, other matters may have progressed sufficiently to enable an estimate of an amount of loss, or a range of possible loss. We accrue for a loss contingency when it is both probable that a loss has occurred, and the amount of loss can be reasonably estimated; however, there may be instances in which an exposure to a loss contingency exceeds our accrual. On a quarterly basis we evaluate developments in the legal proceedings against us that could cause an increase or decrease in the amount of the accrual that has been previously recorded.

CREDIT CARD AND OTHER LOANS - Credit Cards (Details) - Credit Card Loans - Contractual Interest Rate Reduction - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Financing Receivable, Troubled Debt Restructuring [Line Items]
Account Balances	$ 113	$ 101
% of Total credit card loans	0.70%	0.60%
Weighted average interest rate reduction (% points)	23.80%	22.80%

ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($)	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025	Dec. 31, 2024
Financing Receivable, Allowance for Credit Loss [Line Items]
Payments allocated to future purchase activity	$ 0
Allowance for credit loss	$ 2,078,000,000	$ 2,106,000,000	$ 2,172,000,000	$ 2,241,000,000
Portfolio reserve rates	11.46%		12.19%
Other Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit loss	$ 27,000,000	$ 26,000,000

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

INCOME TAXES	3 Months Ended
INCOME TAXES	Mar. 31, 2026
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Provision for income taxes increased for the three months ended March 31, 2026, primarily driven by an increase in Income from continuing operations before income taxes. The effective tax rate was 25.3% and 28.1% for the three-month periods ended March 31, 2026 and 2025, respectively. The decrease in the effective tax rate was due to a discrete tax benefit in the current year period. We file income tax returns in U.S. federal, state, local and foreign jurisdictions, as applicable. With a few exceptions, U.S. federal income tax returns are no longer subject to examination for years before 2022, and state and local income tax and foreign income tax returns are no longer subject to examination for years before 2021.

- Definition

The entire disclosure for income tax.

+ References

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+ Details

DEPOSITS (Tables)

3 Months Ended

Mar. 31, 2026

Other Liabilities Disclosure [Abstract]

Schedule of Deposit by Type

Deposits were categorized as interest-bearing or non-interest-bearing as follows, as of the dates presented:


	March 31, 2026		December 31, 2025
(Millions)
Interest-bearing	$	14,048	$	13,891
Non-interest-bearing (including cardholder credit balances)	25		25
Total deposits	$	14,073	$	13,916

Deposits by deposit type were as follows as of the dates presented:


	March 31, 2026		December 31, 2025
(Millions)
Savings accounts
Direct-to-consumer (retail)	$	4,738	$	4,329
Wholesale	3,273		3,371
Certificates of deposit
Direct-to-consumer (retail)	3,970		4,193
Wholesale	2,067		1,998
Cardholder credit balances	25		25
Total deposits	$	14,073	$	13,916

Schedule of Time Deposit Maturities

The scheduled maturities of certificates of deposit were as follows as of March 31, 2026:


(Millions)
2026 (1)	$	3,870
2027	1,573
2028	465
2029	71
2030	53
Thereafter	5
Total certificates of deposit	$	6,037

__________________________________

(1)The 2026 balance includes $3 million in unamortized debt issuance costs, which are associated with the entire portfolio of certificates of deposit.

- Definition

Tabular disclosure of type of deposit liability.

+ References

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-Publisher SEC

+ Details

SECURITIZATIONS

3 Months Ended

Mar. 31, 2026

Securitizations [Abstract]

SECURITIZATIONS

Under the Indentures of each Trust and their Indenture Supplements, we are required to maintain minimum interests in our Trusts ranging from 4% to 8% of the securitized credit card loans. This requirement is met through a transferor’s interest and is supplemented through excess funding deposits which represent cash amounts deposited with the trustee of the securitizations. Cash collateral, restricted deposits are generally released proportionately as investors are repaid. Under the terms of the Trusts, the occurrence of certain triggering events associated with the performance of the securitized credit card loans in each Trust could result in certain required actions, including payment of Trust expenses, the establishment of reserve funds, or early amortization of the debt securities and/or notes, in a worst-case scenario. During the three months ended March 31, 2026 and 2025, no such triggering events occurred.

The following tables provide the total securitized credit card loans, and related delinquencies and net principal losses of securitized credit card loans, for the periods presented:


	March 31, 2026		December 31, 2025
(Millions)
Total credit card loans – available to settle obligations of consolidated VIEs	$	10,091	$	10,708
Of which: principal amount of credit card loans 90 days or more past due	$	235	$	257


	Three Months Ended March 31,
	2026		2025
(Millions)
Net principal losses of securitized credit card loans	$	174	$	215

PREFERRED STOCK AND COMMON STOCK - Capped Call Transactions (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended
	Feb. 28, 2026	Jun. 30, 2023
Debt Instrument [Line Items]
Capped call (in shares)	1.5
Termination of capped call transactions	$ 111
4.250% Convertible Senior Notes Due 2028 \| Convertible Debt
Debt Instrument [Line Items]
Interest Rates		4.25%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

DEPOSITS - Interest and Non-Interest Bearing (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Other Liabilities Disclosure [Abstract]
Interest-bearing	$ 14,048	$ 13,891
Non-interest-bearing (including cardholder credit balances)	25	25
Total deposits	$ 14,073	$ 13,916

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 3,327	$ 3,051
Changes in other comprehensive (loss) income	(1)	3
Ending balance	3,325	3,068
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(16)	(22)
Ending balance	(17)	(19)
Net Unrealized Losses on AFS Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(14)	(19)
Changes in other comprehensive (loss) income	0	2
Ending balance	(14)	(17)
Net Unrealized Gains on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	1	0
Changes in other comprehensive (loss) income	(1)	1
Ending balance	0	1
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(3)	(3)
Changes in other comprehensive (loss) income	0	0
Ending balance	$ (3)	$ (3)

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

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+ Details

DEPOSITS - Maturity of Deposits (Details) $ in Millions	Mar. 31, 2026 USD ($)
Other Liabilities Disclosure [Abstract]
2026	$ 3,870
2027	1,573
2028	465
2029	71
2030	53
Thereafter	5
Total certificates of deposit	6,037
Time deposits, unamortized debt discount	$ 3

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Other Liabilities [Abstract]
Time deposits, at or above FDIC insurance limit	$ 658	$ 638
Time deposits, at or above FDIC insurance limit of total deposits	5.00%	5.00%

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions

3 Months Ended

Mar. 31, 2026

Mar. 31, 2025

Interest income

Interest and fees on loans

$ 1,224

$ 1,185

Interest on cash and investment securities

Total interest income

1,260

1,231

Interest expense

Interest on deposits

133

138

Interest on borrowings

Total interest expense

193

225

Net interest income

1,067

1,006

Non-interest income

Interchange revenue, net of retailer share arrangements

(107)

(83)

Other

Total non-interest income

(49)

(36)

Total net interest and non-interest income

1,018

970

Provision for credit losses

303

296

Total net interest and non-interest income, after provision for credit losses

715

674

Non-interest expenses

Employee compensation and benefits

220

215

Card and processing expenses

Information processing and communication

Marketing expenses

Depreciation and amortization

Other

Total non-interest expenses

472

477

Income from continuing operations before income taxes

243

197

Provision for income taxes

Income from continuing operations

181

142

Loss from discontinued operations, net of income taxes

^[1]

(4)

Net income

181

138

Dividends declared to preferred stockholders

(2)

Net income available to common stockholders

$ 179

$ 138

Basic earnings per common share (Note 13)

Income from continuing operations (in dollars per share)

$ 4.19

$ 2.89

Loss from discontinued operations (in dollars per share)

(0.08)

Net income per share (in dollars per share)

4.19

2.81

Diluted earnings per common share (Note 13)

Income from continuing operations (in dollars per share)

4.15

2.86

Loss from discontinued operations (in dollars per share)

(0.08)

Net income per share (in dollars per share)

$ 4.15

$ 2.78

Weighted average common shares outstanding (Note 13)

Basic (in shares)

42.8

49.0

Diluted (in shares)

43.2

49.6

[1]

Includes amounts that related to the previously disclosed discontinued operations associated with the spinoff of our former LoyaltyOne segment in 2021 and the sale of our former Epsilon segment in 2019. For additional information, refer to Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” to the unaudited Consolidated Financial Statements.

FAIR VALUES OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Fair Value Disclosures [Abstract]
Transfers into or out of Level 3	$ 0	$ 0
Equity method investment, other than temporary impairment	$ 0	$ 0

EARNINGS PER COMMON SHARE (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

Mar. 31, 2026

Mar. 31, 2025

Numerator

Income from continuing operations

$ 181

$ 142

Loss from discontinued operations, net of income taxes

^[1]

(4)

Net income

181

138

Less: Preferred stock dividends

(2)

Net income available to common stockholders

$ 179

$ 138

Denominator

Weighted average common stock outstanding - basic (in shares)

42.8

49.0

Add: net effect of dilutive unvested restricted stock awards (in shares)

0.4

0.6

Weighted average common stock outstanding – diluted (in shares)

43.2

49.6

Basic EPS

Income from continuing operations (in dollars per share)

$ 4.19

$ 2.89

Loss from discontinued operations (in dollars per share)

(0.08)

Net income per share (in dollars per share)

4.19

2.81

Diluted EPS

Income from continuing operations (in dollars per share)

4.15

2.86

Loss from discontinued operations (in dollars per share)

(0.08)

Net income per share (in dollars per share)

$ 4.15

$ 2.78

Share awards excluded in the computation of diluted earnings per share (in shares)

0.0

0.8

[1]

UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
ASSETS
Cash and cash equivalents	$ 3,637	$ 3,604
Credit card and other loans
Total credit card and other loans (includes loans available to settle obligations of consolidated variable interest entities: March 31, 2026, $10,091; December 31, 2025, $10,708)	18,135	18,805
Allowance for credit losses	(2,078)	(2,106)
Credit card and other loans, net	16,057	16,699
Investments (includes investment securities carried at fair value: March 31, 2026, $222; December 31, 2025, $221)	286	284
Property and equipment, net	112	117
Goodwill and intangible assets, net	708	716
Other assets	1,508	1,243
Total assets	22,308	22,663
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	14,073	13,916
Debt issued by consolidated variable interest entities	3,041	3,422
Long-term and other debt	837	886
Other liabilities	1,032	1,112
Total liabilities	18,983	19,336
Commitments and contingencies (Note 15)
Stockholders’ equity
Preferred stock, $0.01 par value; authorized, 75.0 thousand shares; issued and outstanding: 75.0 thousand shares as of March 31, 2026 and December 31, 2025	0	0
Common stock, $0.01 par value; authorized, 200.0 million shares; issued and outstanding: 41.3 million shares as of March 31, 2026 and 44.1 million shares as of December 31, 2025.	0	0
Additional paid-in capital	1,699	1,868
Retained earnings	1,643	1,475
Accumulated other comprehensive loss	(17)	(16)
Total stockholders’ equity	3,325	3,327
Total liabilities and stockholders’ equity	$ 22,308	$ 22,663

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES

3 Months Ended

Mar. 31, 2026

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES

The following table provides the components of Other non-interest income for the periods presented:


	Three Months Ended March 31,
	2026		2025
(Millions)
Payment protection products	$	36	$	29
Paper statement fees	21		18
Other	1		—
Total other non-interest income	$	58	$	47

The following table provides the components of Other non-interest expenses for the periods presented:


	Three Months Ended March 31,
	2026		2025
(Millions)
Professional services and regulatory fees	$	28	$	29
Occupancy expense	5		5

Other (1)	9		9
Total other non-interest expenses	$	42	$	43

__________________________________

(1)Primarily related to costs associated with various other individually insignificant operating activities.

INVESTMENTS

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

Investments include investment securities and various other investments primarily held by the Banks for Community Reinvestment Act (CRA) purposes. Investment securities consist of available-for-sale (AFS) debt securities, which are mortgage-backed securities and municipal bonds, and equity securities, which are mutual funds. Investment securities are carried at fair value on the Consolidated Balance Sheets. We also have other investments, which primarily include a portfolio of investments in certain limited partnerships and limited liability companies accounted for under the equity method, and therefore are recorded at cost and adjusted each period for our share of the investee’s earnings or losses, less any impairment. Other investments also includes an insignificant tax credit investment where we elected to apply the proportional amortization method of accounting, for which the impacts of both the amortization of the investment and income tax benefits are fully recognized in the Provision for income taxes. Refer to Note 8, “Fair Values of Financial Instruments” for a description of our methodology for determining the fair values of our investment securities.

The following table provides a summary of our Investments as of the dates presented:


	March 31, 2026		December 31, 2025
(Millions)
Investment securities
Available-for-sale debt securities	$	172	$	171
Equity securities	50		50
Total investment securities	222		221
Equity method and other investments	64		63
Total Investments	$	286	$	284

The table below provides unrealized gains and losses on AFS debt securities as of the dates presented:


	March 31, 2026								December 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
(Millions)
Available-for-sale securities	$	190	$	—	$	(18)	$	172	$	189	$	—	$	(18)	$	171
Total	$	190	$	—	$	(18)	$	172	$	189	$	—	$	(18)	$	171


	March 31, 2026
	Less than 12 months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(Millions)
Available-for-sale securities	$	19	$	—	$	129	$	(18)	$	148	$	(18)
Total	$	19	$	—	$	129	$	(18)	$	148	$	(18)


	December 31, 2025
	Less than 12 months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(Millions)
Available-for-sale securities	$	—	$	—	$	135	$	(18)	$	135	$	(18)
Total	$	—	$	—	$	135	$	(18)	$	135	$	(18)

As of March 31, 2026 our AFS debt securities included mortgage-backed securities and municipal bonds. The mortgage-backed securities, which do not have a single maturity date, have an amortized cost and estimated fair value of $160 million and $145 million, respectively, with a weighted average yield of 3.29%. The municipal bonds which all have a maturity date greater than ten years, have an amortized cost and estimated fair value of $30 million and $27 million, respectively, with a weighted average yield of 3.83%. Weighted average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts. Accrued interest on our AFS debt securities is included in Other assets on the Consolidated Balance Sheets and was insignificant as of both March 31, 2026 and December 31, 2025.

There were no realized gains or losses from the sale of any investment securities for the three months ended March 31, 2026 and 2025.

REGULATORY MATTERS AND CAPITAL ADEQUACY

3 Months Ended

Mar. 31, 2026

Regulated Operations [Abstract]

REGULATORY MATTERS AND CAPITAL ADEQUACY

Regulatory Matters

Our business is subject to extensive federal and state laws and regulations, as well as related regulation and supervision, including by the FDIC, CFPB and other federal and state authorities. Pending and future laws and regulations (federal and state) may adversely impact our business. Without limiting the foregoing, CB is subject to various regulatory capital requirements administered by the Delaware Office of the State Bank Commissioner and the FDIC. CCB is also subject to various regulatory capital requirements administered by the Utah Department of Financial Institutions and the FDIC. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by our regulators. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, both Banks must meet specific capital guidelines that involve quantitative measures of their assets and liabilities as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by these regulators about components, risk weightings and other factors. In addition, both Banks are limited in the amounts they can pay as dividends to the Parent Company.

Quantitative measures, established by regulations to ensure capital adequacy, require the Banks to maintain minimum amounts and ratios of Tier 1 capital to average assets, and Common equity tier 1, Tier 1 capital and Total capital, each to risk-weighted assets. Failure to meet these minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by the Banks’ regulators that if undertaken, could have a direct material effect on CB’s and/or CCB’s operating activities, as well as our operating activities. Based on these regulations, as of March 31, 2026 and 2025, each Bank met all capital requirements to which it was subject, and maintained capital ratios in excess of the minimums required to qualify as well capitalized. The Banks seek to maintain capital levels and ratios in excess of the minimum regulatory requirements inclusive of the 2.5% Capital Conservation Buffer. Although Bread Financial is not a bank holding company as defined under the Bank Holding Company Act, we seek to maintain capital levels and ratios in excess of the minimums required for bank holding companies.

The following table provides the actual capital ratios and minimum ratios for the Company, as well as each Bank, as of the periods presented:


	Ratio/Dollar Value						Minimum Ratio for Capital Adequacy Purposes *		Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions
(Millions, except percentages)	March 31, 2026			December 31, 2025
Total Company
Common equity tier 1 capital ratio (1)	13.3		%	13.0		%	4.5	%	N/A
Tier 1 capital ratio (2)	13.7			13.4			6.0		N/A
Total risk-based capital ratio (3)	16.9			16.8			8.0		N/A
Tier 1 leverage capital ratio (4)	12.1			12.4			4.0		N/A
Total risk-weighted assets (5)	$	19,352		$	19,755

Comenity Bank
Common equity tier 1 capital ratio (1)	15.1		%	15.1		%	4.5	%	6.5	%
Tier 1 capital ratio (2)	15.1			15.1			6.0		8.0
Total risk-based capital ratio (3)	16.5			16.5			8.0		10.0
Tier 1 leverage capital ratio (4)	13.5			14.1			4.0		5.0

Comenity Capital Bank
Common equity tier 1 capital ratio (1)	13.5		%	13.5		%	4.5	%	6.5	%
Tier 1 capital ratio (2)	14.1			14.1			6.0		8.0
Total risk-based capital ratio (3)	17.6			17.5			8.0		10.0
Tier 1 leverage capital ratio (4)	12.4			13.2			4.0		5.0

______________________________

*The listed capital adequacy ratios exclude the Capital Conservation Buffer.

(4)Tier 1 leverage capital ratio represents tier 1 capital divided by total average assets, after certain adjustments.

(5)Total risk-weighted assets are generally measured by allocating assets, and specified off-balance sheet exposures, to various risk categories as defined by the Basel III Standardized Approach.

We are also involved, from time to time, in reviews, investigations, subpoenas, supervisory actions and other proceedings (both formal and informal) by governmental agencies regarding our business, which could subject us to significant fines, penalties, obligations to change our business practices, significant restrictions on our existing business or ability to develop new business, cease-and-desist orders, safety-and-soundness directives or other requirements resulting in increased expenses, diminished income and damage to our reputation.

In November 2023 following the consent of the Board of Managers of Comenity Servicing LLC (the Servicer), the FDIC issued a consent order to the Servicer. The Servicer is not one of our Bank subsidiaries, but is our wholly-owned subsidiary that services substantially all of our loans. The consent order arose out of the June 2022 transition of our credit card processing services to strategic outsourcing partners and addresses certain shortcomings in the Servicer’s information technology (IT) systems development, project management, business continuity management, cloud operations, and third-party oversight. The Servicer entered into the consent order for the purpose of resolving these matters without admitting or denying any violations of law or regulation set forth in the order. The consent order did not contain any monetary penalties or fines. The consent order was terminated by the FDIC on March 31, 2026.

On December 17, 2025, we filed applications with the federal and respective state banking regulators for permission to merge CB with and into CCB, with CCB being the surviving entity. Pending regulatory approval and the expiration of any applicable waiting periods, the merger of CB and CCB is expected to occur in the second half of 2026. The merger is not expected to have a significant impact on our consolidated financial position, results of operations, or liquidity.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Financial assets
Credit card and other loans, net	$ 18,084	$ 18,747
Total	18,084	18,747
Financial liabilities
Deposits	14,075	13,928
Debt issued by consolidated VIEs	3,054	3,442
Long-term and other debt	851	931
Total	17,980	18,301
Level 1
Financial assets
Credit card and other loans, net	0	0
Total	0	0
Financial liabilities
Deposits	0	0
Debt issued by consolidated VIEs	0	0
Long-term and other debt	0	0
Total	0	0
Level 2
Financial assets
Credit card and other loans, net	0	0
Total	0	0
Financial liabilities
Deposits	14,075	13,928
Debt issued by consolidated VIEs	3,054	3,442
Long-term and other debt	851	931
Total	17,980	18,301
Level 3
Financial assets
Credit card and other loans, net	18,084	18,747
Total	18,084	18,747
Financial liabilities
Deposits	0	0
Debt issued by consolidated VIEs	0	0
Long-term and other debt	0	0
Total	$ 0	$ 0

CREDIT CARD AND OTHER LOANS - Financing Receivable (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025	Dec. 31, 2024
Financing Receivable, Allowance for Credit Loss [Line Items]
Total credit card and other loans	$ 18,135	$ 18,805
Less: Allowance for credit losses	(2,078)	(2,106)	$ (2,172)	$ (2,241)
Credit card and other loans, net	16,057	16,699
Unbilled to cardholders	382	378
Variable Interest Entity, Primary Beneficiary
Financing Receivable, Allowance for Credit Loss [Line Items]
Credit card and loan receivables restricted for securitization investors	10,091	10,708
Credit card loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total credit card and other loans	17,656	18,417
Other loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total credit card and other loans	479	388
Less: Allowance for credit losses	$ (27)	$ (26)

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

PREFERRED STOCK AND COMMON STOCK (Tables)

3 Months Ended

Mar. 31, 2026

Stockholders' Equity Note [Abstract]

Schedule of Class of Treasury Stock

The following table provides information about our common stock repurchases under our various Board-approved share repurchase authorizations, for the periods presented:


(Millions)	Amount Authorized for Repurchase		Number of Shares Repurchased (1)	Approximate Dollar Value of Shares Repurchased (2)		Amount Remaining for Future Repurchases
As of December 31, 2025						$	240
For the three months ended:
March 31, 2026	$	600	2.0	$	150	$	690

______________________________

(1)Upon repurchase, these shares were retired and ceased to be outstanding shares of common stock, and are now treated as authorized but unissued shares of common stock. Does not include the 1.5 million shares that were retired in connection with the termination of our Capped Call transactions, discussed below.

(2)Excludes excise taxes on stock repurchases.

Schedule of Dividends Declared


(Millions, except per share amounts)		Preferred Stock				Common Stock
Dividend Declaration Date	Dividend Payment Date	Amount Per Share		Amount		Amount Per Share		Amount (1)
January 29, 2026	March 16, 2026	$	26.35	$	2	$	0.23	$	10

______________________________

(1)Excludes dividend equivalent rights paid during the period.

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value Level Disclosure (Details) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Assets disclosed at fair value
Investment securities	$ 222	$ 221
Total assets measured at fair value	222	221
Level 1
Assets disclosed at fair value
Investment securities	50	50
Total assets measured at fair value	50	50
Level 2
Assets disclosed at fair value
Investment securities	172	171
Total assets measured at fair value	172	171
Level 3
Assets disclosed at fair value
Investment securities	0	0
Total assets measured at fair value	$ 0	$ 0

- Definition

Fair value portion of investment securities, including, but not limited to, marketable securities, derivative financial instruments, and investments accounted for under the equity method.

+ References + Details

ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2026

Credit Loss [Abstract]

ALLOWANCE FOR CREDIT LOSSES

The Allowance for credit losses represents our estimate of expected credit losses over the estimated life of our Credit card and other loans, incorporating future macroeconomic forecasts in addition to information about past events and current conditions. Our estimate under the Current Expected Credit Loss (CECL) approach is significantly influenced by the composition, characteristics and quality of our portfolio of Credit card and other loans, as well as the prevailing economic conditions and forecasts utilized. The Allowance for credit losses includes an estimate for uncollectible principal as well as billed, unpaid interest and fees. Principal losses, net of recoveries are deducted from the Allowance for credit losses. Losses of unpaid interest and fees are recorded as a reduction to Interest and fees on loans upon charge-off. The Allowance for credit losses is maintained through an adjustment to the Provision for credit losses and is evaluated for appropriateness on a quarterly basis.

In estimating our Allowance for credit losses, for each identified segment of loans sharing similar risk characteristics, management uses modeling and estimation techniques based on historical loss experience, current conditions, reasonable and supportable forecasts and other relevant factors. This modeling uses historical data and applicable macroeconomic variables with statistical analysis and behavioral relationships, to determine expected credit performance. Our quantitative estimate of expected credit losses under CECL is impacted by certain forecasted macroeconomic variables. We consider the macroeconomic forecast used to be reasonable and supportable over the estimated life of the Credit card and other loans portfolio, with no reversion period. In addition to the quantitative estimate of expected credit losses, we also incorporate qualitative adjustments for certain factors such as Company-specific risks, changes in current macroeconomic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the Allowance for credit losses reflects our best estimate of current expected credit losses.

Credit Card Loans

Other Loans

We measure our Allowance for credit losses on Other loans, consisting primarily of our installment loans and “split-pay” offerings, using a statistical model to estimate projected losses over the remaining terms of the loans, inclusive of an assumption for prepayments. The model is based on the historical statistical relationship between loan loss performance and certain macroeconomic data pooled based on credit quality risk score, term of the underlying loans, vintage and geographic location. As of March 31, 2026 and December 31, 2025, the Allowance for credit losses on Other loans was $27 million and $26 million, respectively.

Allowance for Credit Losses Rollforward

The following table provides our Allowance for credit losses for our Credit card and other loans. The amount of the related Allowance for credit losses on other loans is insignificant and therefore has been included in the table below for the periods presented:


	Three Months Ended March 31,
	2026		2025
(Millions)
Beginning balance	$	2,106	$	2,241

Provision for credit losses (1)	303		296

Net principal losses (2)	(331)		(365)
Ending balance	$	2,078	$	2,172

__________________________________

(1)Provision for credit losses includes a build/release for the Allowance for credit losses, as well as replenishment of Net principal losses. Beginning on January 1, 2026 any changes in the estimate for uncollectible unpaid interest and fees will be recognized as part of the Provision for credit losses; previously such changes were recognized as part of Interest and fees on loans.

(2)Net principal losses are presented net of recoveries of $89 million and $96 million for the three months ended March 31, 2026 and 2025, respectively.

For the three months ended March 31, 2026 the balance of the Allowance for credit losses decreased, due primarily to the decrease in Credit card and other loans as seasonally higher transactor balances from the fourth quarter of 2025 were paid down in the first quarter of 2026. Our reserve rate was 11.46% and 12.19% as of March 31, 2026 and 2025, respectively, reflecting our improving credit metrics and higher-quality new account acquisitions. We continue to maintain appropriately prudent weightings on the economic scenarios in our credit reserve modeling to ensure the adequacy of our Allowance for credit losses given the wide range of potential macroeconomic dynamics, including ongoing uncertainty regarding trade policy and global conflicts, and downstream impacts on inflation and unemployment.

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Statement of Stockholders' Equity [Abstract]
Common stock dividends and dividend equivalent rights declared (in dollars per share)	$ 0.23	$ 0.21
Preferred stock dividends and dividend equivalent rights declared (in dollars per share)	$ 26.35	$ 0

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Millions	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2024		0
Beginning balance at Dec. 31, 2024	$ 3,051	$ 0	$ 1	$ 2,073	$ 999	$ (22)
Beginning, balance (in shares) at Dec. 31, 2024			49,100,000
Increase (Decrease) in Stockholders' Equity
Net income	138				138
Other comprehensive income (loss)	3					3
Stock-based compensation	13			13
Repurchases of common stock (in shares)			(2,100,000)
Repurchases of common stock	(103)			(103)
Repurchases of Convertible Notes	(2)			(2)
Dividends and dividend equivalent rights declared	(11)				(11)
Issuance of shares to employees, net of shares withheld for employee taxes (in shares)			600,000
Issuance of shares to employees, net of shares withheld for employee taxes	(21)			(21)
Ending balance (in shares) at Mar. 31, 2025		0
Ending balance at Mar. 31, 2025	3,068	$ 0	$ 1	1,960	1,126	(19)
Ending, balance (in shares) at Mar. 31, 2025			47,600,000
Beginning balance (in shares) at Dec. 31, 2024		0
Beginning balance at Dec. 31, 2024	$ 3,051	$ 0	$ 1	2,073	999	(22)
Beginning, balance (in shares) at Dec. 31, 2024			49,100,000
Increase (Decrease) in Stockholders' Equity
Repurchases of common stock (in shares)
Ending balance (in shares) at Dec. 31, 2025	75,000.0	75,000,000.0
Ending balance at Dec. 31, 2025	$ 3,327	$ 0	$ 0	1,868	1,475	(16)
Ending, balance (in shares) at Dec. 31, 2025	44,100,000		44,100,000
Increase (Decrease) in Stockholders' Equity
Net income	$ 181				181
Other comprehensive income (loss)	(1)					(1)
Stock-based compensation	$ 14			14
Repurchases of common stock (in shares)	(2,000,000.0)		(2,000,000.0)
Repurchases of common stock	$ (152)			(152)
Termination of Capped Call transactions (in shares)			(1,500,000)
Dividends and dividend equivalent rights declared	(13)				(13)
Issuance of shares to employees, net of shares withheld for employee taxes (in shares)			700,000
Issuance of shares to employees, net of shares withheld for employee taxes	$ (31)			(31)
Ending balance (in shares) at Mar. 31, 2026	75,000.0	75,000,000.0
Ending balance at Mar. 31, 2026	$ 3,325	$ 0	$ 0	$ 1,699	$ 1,643	$ (17)
Ending, balance (in shares) at Mar. 31, 2026	41,300,000		41,300,000

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Statement of Comprehensive Income [Abstract]
Net income	$ 181	$ 138
Other comprehensive (loss) income
Unrealized gain on available-for-sale debt securities	0	3
Tax expense	0	(1)
Unrealized gain on available-for-sale debt securities, net of tax	0	2
Unrealized (loss) gain on cash flow hedges	(1)	1
Tax expense	0	0
Unrealized (loss) gain on cash flow hedges, net of tax	(1)	1
Other comprehensive (loss) income, net of tax	(1)	3
Total comprehensive income, net of tax	$ 180	$ 141

ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2026

Credit Loss [Abstract]

Schedule of Allowance for Loan Loss


	Three Months Ended March 31,
	2026		2025
(Millions)
Beginning balance	$	2,106	$	2,241

Provision for credit losses (1)	303		296

Net principal losses (2)	(331)		(365)
Ending balance	$	2,078	$	2,172

__________________________________

(2)Net principal losses are presented net of recoveries of $89 million and $96 million for the three months ended March 31, 2026 and 2025, respectively.

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2026

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements






Accounting Standards Recently Adopted during 2026
Standard	Guidance	Timing and Financial Statement Impact
Debt – Debt with Conversion and Other Options: Induced Conversions of Convertible Debt Instruments Issued November, 2024	Improves the relevance and consistency in application of the induced conversion guidance for (a) convertible debt instruments with cash conversion features and (b) debt instruments that are not currently convertible.	Adopted January 1, 2026. Adoption had no impact on our financial reporting and will not have any impact in the near term as all of our Convertible Notes had been extinguished and no Convertible Notes remained outstanding as of December 31, 2025. Additionally, adoption did not have a significant impact on our operational processes, controls and governance in support of the new guidance.
Accounting Standards Recently Issued but Not Yet Adopted as of March 31, 2026
Standard	Guidance	Timing and Financial Statement Impact
Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses Issued November, 2024	Requires disaggregated disclosure within the notes to the Consolidated Financial Statements of certain income statement expenses on the face of the Consolidated Statements of Income, and further disaggregation of certain expense captions into specified categories.	Effective beginning with our Annual Report on Form 10-K for the year ending December 31, 2027, and effective for interim reporting periods beginning in 2028. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.
Intangibles – Goodwill and Other – Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software Issued September, 2025	Amends certain aspects of the accounting for and disclosure of internal-use software costs, including removing all references to prescriptive and sequential software development stages to align better with current software development methods, e.g., agile.	Effective January 1, 2028. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.
Financial Instruments – Credit Losses: Purchased Loans Issued November, 2025	Amends the accounting for acquired loans (excluding credit cards) that meet certain criteria at acquisition (referred to as purchased seasoned loans) by recognizing them at their purchase price plus an allowance for expected credit losses (i.e., the gross-up approach).	Effective January 1, 2027. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.

PREFERRED STOCK AND COMMON STOCK

3 Months Ended

Mar. 31, 2026

Stockholders' Equity Note [Abstract]

PREFERRED STOCK AND COMMON STOCK

Preferred Stock

In November 2025, we authorized and issued 75,000 shares of preferred stock as depositary shares (the Depositary Shares) for gross proceeds of $75 million, with each Depositary Share representing a 1/40th interest in our Series A 8.625% Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share (the Series A Preferred Stock). The Series A Preferred Stock has a liquidation preference of $25 per Depositary Share (equivalent to $1,000 per share of Series A Preferred Stock) and as of both March 31, 2026 and December 31, 2025, the aggregate liquidation value was $75 million.

Stock Repurchase Authorizations

Periodically, we repurchase shares of our common stock pursuant to Board-approved share repurchase authorizations. The rationale for our repurchase authorizations, and the amounts thereof, is to execute against our previously disclosed capital priorities to grow responsibly, maintain balance sheet strength, and return value to stockholders.

The following table provides information about our common stock repurchases under our various Board-approved share repurchase authorizations, for the periods presented:


(Millions)	Amount Authorized for Repurchase		Number of Shares Repurchased (1)	Approximate Dollar Value of Shares Repurchased (2)		Amount Remaining for Future Repurchases
As of December 31, 2025						$	240
For the three months ended:
March 31, 2026	$	600	2.0	$	150	$	690

______________________________

(2)Excludes excise taxes on stock repurchases.

Capped Call Transactions

In connection with the prior issuance of our 4.25% Convertible Senior Notes due 2028 (Convertible Notes), we entered into privately negotiated capped call (Capped Call) transactions with certain financial institution counterparties in June 2023. At that time, these transactions were expected generally to reduce potential dilution to our common stock upon any conversion of Convertible Notes and/or offset any cash payments we were required to make in excess of the principal amount of the Convertible Notes, with such reduction and/or offset subject to a cap, based on the cap price. As of December 31, 2025, all of the Capped Call transactions remained outstanding, notwithstanding that no Convertible Notes were outstanding at that time. For additional information on the June 2023 issuance of our Convertible Notes and the subsequent repurchases in 2024 and 2025, as well as information on our Capped Call transactions, refer to Note 10, “Borrowings of Long-Term and Other Debt” to the audited Consolidated Financial Statements included in our Annual Reports on Form 10-K for the years ended December 31, 2025 and 2024.

In February 2026 we entered into a separate, privately negotiated termination agreement (each, a Capped Call Unwind Agreement) with each financial institution counterparty to the Capped Call transactions, thereby terminating all of the outstanding Capped Call transactions, and resulting in the receipt of an aggregate of 1.5 million shares of our common stock, with a value of $111 million, from the Capped Call counterparties pursuant to the Capped Call Unwind Agreements. Following their receipt, these shares were retired and ceased to be outstanding shares of common stock, and are now treated as authorized but unissued shares of common stock.

Dividends

The table below summarizes the cash dividend activity we had on our preferred and common stock for the dates presented:


(Millions, except per share amounts)		Preferred Stock				Common Stock
Dividend Declaration Date	Dividend Payment Date	Amount Per Share		Amount		Amount Per Share		Amount (1)
January 29, 2026	March 16, 2026	$	26.35	$	2	$	0.23	$	10

______________________________

(1)Excludes dividend equivalent rights paid during the period.

On April 23, 2026, our Board of Directors declared a quarterly cash dividend of $21.56 per share on our preferred stock and $0.23 per share on our common stock, each payable on June 15, 2026, to stockholders of record at the close of business on May 29, 2026.

- Definition

The entire disclosure for equity.

+ References

+ Details

CREDIT CARD AND OTHER LOANS (Tables)

3 Months Ended

Mar. 31, 2026

Receivables [Abstract]

Schedule of Components of Credit Card And Other Loans

The following table provides Credit card and other loans, as of the dates presented:


	March 31, 2026		December 31, 2025
(Millions)
Credit card loans	$	17,656	$	18,417
Other loans	479		388
Total credit card and other loans (1)(2)	18,135		18,805
Less: Allowance for credit losses	(2,078)		(2,106)
Credit card and other loans, net	$	16,057	$	16,699

__________________________________

(1)Includes $10.1 billion and $10.7 billion of Credit card and other loans available to settle obligations of consolidated VIEs as of March 31, 2026 and December 31, 2025, respectively.

(2)Includes $382 million and $378 million, of accrued interest and fees that have not yet been billed to cardholders as of March 31, 2026 and December 31, 2025, respectively.

Schedule of Aging Analysis of Total Credit Card And Other Loans Portfolio At Amortized Cost

The following table provides the delinquency trends of our Credit card and other loans portfolio, based on the amortized cost, as of the dates presented:


	Aging Analysis of Delinquent Amortized Cost Credit Card and Other Loans (1)
	30 to 59 Days Past Due		60 to 89 Days Past Due		90 or more Days Past Due		Total		Total Current		Total
(Millions)
March 31, 2026	$	325	$	266	$	634	$	1,225	$	16,485	$	17,710

December 31, 2025	$	359	$	282	$	676	$	1,317	$	17,076	$	18,393

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cardholders were $382 million and $378 million, respectively, included in Credit card and other loans on the Consolidated Balance Sheets.


	Aging Analysis of Delinquent Amortized Cost Loan Modifications - Credit Card Loans
	30 to 59 Days Past Due		60 to 89 Days Past Due		90 or more Days Past Due		Total		Total Current		Total
(Millions)
March 31, 2026	$	24	$	22	$	27	$	73	$	258	$	331

December 31, 2025	$	24	$	22	$	26	$	72	$	253	$	325

Schedule of Composition of Credit Quality

The following table reflects the distribution of credit card and other loans by Vantage score as of the dates presented:


	March 31, 2026						December 31, 2025
	651 or Higher		591 to 650		590 or Lower		651 or Higher		591 to 650		590 or Lower
Credit card loans	64	%	24	%	12	%	64	%	23	%	13	%
Other loans (1)	92	%	8	%	—	%	90	%	9	%	1	%

__________________________________

(1)Represents Vantage score distribution for our pay-over-time products that had an amortized cost basis of $447 million and $365 million as of March 31, 2026 and December 31, 2025, respectively.

Schedule of Information on Credit Card Loans Considered Troubled Debt Restructurings

The following table provides information relating to credit card loans to borrowers experiencing financial difficulty that were granted a concession under a Loan Modification program during the periods presented:


	Three Months Ended March 31,
	2026			2025
(Millions, except percentages)
Account balance (1)	$	113		$	101
% of Total credit card loans	0.7		%	0.6		%
Weighted average interest rate reduction (% points)	23.8		%	22.8		%

__________________________________


	Three Months Ended March 31,
	2026		2025
(Millions, except for Number of modifications)
Number of modifications	7,433		7,806
Outstanding balance	$	15	$	15

UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2026	Dec. 31, 2025
Debt securities, trading, and equity securities, FV-NI	$ 222	$ 221
Preferred stock, par or stated value per share	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	75,000.0	75,000.0
Preferred stock, issued (in shares)	75,000.0	75,000.0
Preferred stock, shares outstanding (in shares)	75,000.0	75,000.0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	200,000,000.0	200,000,000.0
Common stock, issued (in shares)	41,300,000	44,100,000
Common stock, outstanding shares (in shares)	41,300,000	44,100,000
Variable Interest Entity, Primary Beneficiary
Credit card and loan receivables restricted for securitization investors	$ 10,091	$ 10,708

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2026

Fair Value Disclosures [Abstract]

Schedule of Estimated Fair Value of Company's Financial Instruments

The following table summarizes the carrying values and fair values of our financial assets and financial liabilities as of the dates presented:


	March 31, 2026				December 31, 2025
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
(Millions)
Financial assets
Credit card and other loans, net	$	16,057	$	18,084	$	16,699	$	18,747
Investment securities	222		222		221		221
Financial liabilities
Deposits	14,073		14,075		13,916		13,928
Debt issued by consolidated VIEs	3,041		3,054		3,422		3,442
Long-term and other debt	$	837	$	851	$	886	$	931

Schedule of Assets And Liabilities Carried At Fair Value Measured On Recurring Basis


	March 31, 2026
	Total		Level 1		Level 2		Level 3
(Millions)
Investment securities	$	222	$	50	$	172	$	—
Total assets measured at fair value	$	222	$	50	$	172	$	—


	December 31, 2025
	Total		Level 1		Level 2		Level 3
(Millions)
Investment securities	$	221	$	50	$	171	$	—
Total assets measured at fair value	$	221	$	50	$	171	$	—

Schedule of Assets And Liabilities Disclosed But Not Carried At Fair Value


	March 31, 2026
	Fair Value		Level 1		Level 2		Level 3
(Millions)
Financial assets
Credit card and other loans, net	$	18,084	$	—	$	—	$	18,084
Total	$	18,084	$	—	$	—	$	18,084

Financial liabilities
Deposits	$	14,075	$	—	$	14,075	$	—
Debt issued by consolidated VIEs	3,054		—		3,054		—
Long-term and other debt	851		—		851		—
Total	$	17,980	$	—	$	17,980	$	—


	December 31, 2025
	Fair Value		Level 1		Level 2		Level 3
(Millions)
Financial assets
Credit card and other loans, net	$	18,747	$	—	$	—	$	18,747
Total	$	18,747	$	—	$	—	$	18,747

Financial liabilities
Deposits	$	13,928	$	—	$	13,928	$	—
Debt issued by consolidated VIEs	3,442		—		3,442		—
Long-term and other debt	931		—		931		—
Total	$	18,301	$	—	$	18,301	$	—

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	Feb. 20, 2024	Oct. 18, 2023
Pirinate Consulting Group, LLC v. Bread Financial Holdings, Inc.,
Loss Contingencies [Line Items]
Damages sought	$ 750
LoyaltyOne, Co. v. Bread Financial Holdings, Inc. et al
Loss Contingencies [Line Items]
Damages sought		$ 775

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 275
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482861/275-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483076/450-20-50-4

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483076/450-20-50-9

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 720
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483359/720-20-50-1

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 460
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 27
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482395/460-10-55-27

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483076/450-20-50-9

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483076/450-20-50-4

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 460
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482425/460-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 450
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483076/450-20-50-1

+ Details

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES - Components of Other Non-Interest Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Other Noninterest Income [Abstract]
Payment protection products	$ 36	$ 29
Paper statement fees	21	18
Other	1	0
Total other non-interest income	$ 58	$ 47

INCOME TAXES (Details)	3 Months Ended
INCOME TAXES (Details)	Mar. 31, 2026	Mar. 31, 2025
Income Tax Disclosure [Abstract]
Effective tax rate	25.30%	28.10%

EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2026

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the periods presented:


	Three Months Ended March 31,
	2026		2025
(Millions, except per share amounts)
Numerator
Income from continuing operations	$	181	$	142
Loss from discontinued operations, net of income taxes (1)	—		(4)
Net income	181		138
Less: Preferred stock dividends	(2)		—
Net income available to common stockholders	$	179	$	138

Denominator
Weighted average common stock outstanding – basic	42.8		49.0

Add: net effect of dilutive unvested restricted stock awards (2)	0.4		0.6

Weighted average common stock outstanding – diluted	43.2		49.6

Basic EPS
Income from continuing operations	$	4.19	$	2.89
Loss from discontinued operations	$	—	$	(0.08)
Net income per share	$	4.19	$	2.81

Diluted EPS
Income from continuing operations	$	4.15	$	2.86
Loss from discontinued operations	$	—	$	(0.08)
Net income per share	$	4.15	$	2.78

__________________________________