Bread Financial Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Bread Financial Holdings, Inc. has submitted its 2023 annual report detailing its financial performance and operations.</b>

AI Summary

BREAD FINANCIAL HOLDINGS, INC. (BFH-PA) filed a Annual Report (10-K) with the SEC on February 20, 2024. Bread Financial Holdings, Inc. filed its annual report for the fiscal year ending December 31, 2023. The company's principal business is in Personal Credit Institutions, SIC code 6141. The filing covers the period from January 1, 2023, to December 31, 2023. Bread Financial Holdings, Inc. was formerly known as Alliance Data Systems Corp, with a name change on December 17, 1999. The company is incorporated in Delaware and headquartered in Columbus, Ohio.

Why It Matters

For investors and stakeholders tracking BREAD FINANCIAL HOLDINGS, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Bread Financial's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. As a key player in the personal credit institutions sector, the detailed financial disclosures in this report are vital for understanding market trends, competitive positioning, and potential regulatory impacts on the company and its stakeholders.

Risk Assessment

Risk Level: medium — BREAD FINANCIAL HOLDINGS, INC. shows moderate risk based on this filing. The company operates in the personal credit sector, which is subject to significant regulatory oversight and economic sensitivity, as indicated by its SIC code 6141 and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Bread Financial's performance and outlook in the evolving credit market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-20 — Filed As Of Date (Submission date)
• 6141 — Standard Industrial Classification (Business sector)
• 311429215 — IRS Number (Tax identification)
• DE — State of Incorporation (Legal domicile)
• 6147294000 — Business Phone (Contact number)

Key Players & Entities

• BREAD FINANCIAL HOLDINGS, INC. (company) — Filer name
• BFH-PA (company) — Ticker symbol
• 10-K (filing) — Form type
• 2024-02-20 (date) — Filing date
• 2023-12-31 (date) — Period of report
• COLUMBUS, OH (location) — Business address
• ALLIANCE DATA SYSTEMS CORP (company) — Former company name
• 1999-12-17 (date) — Date of name change

FAQ

Industry Context

Bread Financial Holdings, Inc. operates within the personal credit institutions sector, providing financial services related to consumer credit.

Regulatory Implications

As a financial institution, Bread Financial is subject to extensive regulation by federal and state authorities governing lending practices, consumer protection, and financial stability.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the risk factors section for potential challenges and uncertainties facing Bread Financial.
3. Compare key financial metrics with previous years and industry peers.

Key Dates

• 2023-12-31: Fiscal Year End — Defines the reporting period for the annual financial statements.
• 2024-02-20: Filing Date — Indicates when the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational information compared to the previous year's filings.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share BFH New York Stock Exchange
• $31.39 — lion, based upon the closing sale price $31.39 as reported on the New York Stock Excha
• $1.7 billion — nt Company debt levels by approximately $1.7 billion as of December 31, 2023; refinanced and
• $700 — erage customer balance of approximately $700; although, we do offer "big ticket" fin
• $17.9 billion — methods. As of December 31, 2023 we had $17.9 billion in principal on credit card loans from
• $900 — nded December 31, 2023 of approximately $900 for accounts with outstanding balances.

Filing Documents

• bfh-20231231.htm (10-K) — 3134KB
• bfh-12312003xexx102.htm (EX-10.2) — 6KB
• bfh-12312003xexx109.htm (EX-10.9) — 59KB
• bfh-12312003xexx1010.htm (EX-10.10) — 58KB
• bfh-12312003xexx1014.htm (EX-10.14) — 41KB
• bfh-12312003xexx10127.htm (EX-10.127) — 31KB
• bfh-12312003xexx10128.htm (EX-10.128) — 33KB
• bfh-12312003xexx10137.htm (EX-10.137) — 36KB
• bfh-12312003xexx10138.htm (EX-10.138) — 289KB
• bfh-12312023xexx21.htm (EX-21) — 14KB
• bfh-12312023xexx231.htm (EX-23.1) — 4KB
• bfh-12312023xexx311.htm (EX-31.1) — 11KB
• bfh-12312023xexx312.htm (EX-31.2) — 11KB
• bfh-12312023xexx321.htm (EX-32.1) — 5KB
• bfh-12312023xexx322.htm (EX-32.2) — 5KB
• bfh-12312003xexx97.htm (EX-97) — 47KB
• bfh-20231231_g1.jpg (GRAPHIC) — 82KB
• bfh-20231231_g2.jpg (GRAPHIC) — 65KB
• bfh-20231231_g3.jpg (GRAPHIC) — 139KB
• image_0a.jpg (GRAPHIC) — 14KB
• 0001101215-24-000041.txt (&nbsp;) — 15291KB
• bfh-20231231.xsd (EX-101.SCH) — 103KB
• bfh-20231231_cal.xml (EX-101.CAL) — 171KB
• bfh-20231231_def.xml (EX-101.DEF) — 399KB
• bfh-20231231_lab.xml (EX-101.LAB) — 1117KB
• bfh-20231231_pre.xml (EX-101.PRE) — 720KB
• bfh-20231231_htm.xml (XML) — 2112KB

Risk Factors

Risk Factors 20 1B. Unresolved Staff Comments 47 1 C. C ybersecurity 47 2.

Properties

Properties 49 3 .

Legal Proceedings

Legal Proceedings 49 4 . Mine Safety Disclosures 49 PART II 5 . Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 50 6. [RESERVED] 51 7 .

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 52 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 72 8 .

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 72 9 . Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 73 9A.

Controls and Procedures

Controls and Procedures 73 9B. Other Information 73 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 74 PART III 10. Directors, Executive Officers and Corporate Governance 75 11 .

Executive Compensation

Executive Compensation 75 12 .

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 75 13 . Certain Relationships and Related Transactions, and Director Independence 75 14 . Principal Accounting Fees and Services 75 PART IV 15. Exhibits, Financial Statement Schedules 76 16. Form 10-K Summary 89 This report includes trademarks, such as Bread , Bread Cashback, Bread Pay and Bread Savings, which are protected under applicable intellectual property laws and are the property of Bread Financial Holdings, Inc. or our subsidiaries. This report also contains trademarks, service marks, copyrights and trade names of other companies, which are the property of their respective owners. Solely for convenience, our trademarks and trade names referred to in this report may appear without the or symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks and trade names. Table of Contents Throughout this report, unless stated or the context implies otherwise, the terms "Bread Financial", the "Company", "we", "our" or "us" refer to Bread Financial Holdings, Inc. and our 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 primarily through our insured depository institution subsidiaries, Comenity Bank and Comenity Capital Bank, which together are referred to herein as the "Banks". Bread Financial is al

Business

Item 1. Business. We are a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions. We create opportunities for our customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, we deliver growth for our partners through a comprehensive product suite, including private label and co-brand credit cards and buy now, pay later (BNPL) products such as installment loans and our "split-pay" offerings. We also offer direct-to-consumer solutions that give customers more access, choice and freedom through our branded Bread Cashback TM American Express Credit Card and Bread Savings TM products. Our partner base consists of large consumer-based businesses, including well-known brands such as (alphabetically) AAA, Academy Sports + Outdoors, Caesars, Dell Technologies, the NFL, 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, including travel and entertainment, health and beauty, jewelry, sporting goods, home goods, technology and electronics and the industry in which we first began, specialty apparel. We believe our comprehensive suite of payment, lending and saving solutions, along with our related marketing and data and analytics, offers us a significant competitive advantage with products relevant across all customer segments (Gen Z, Millennial, Gen X and Baby Boomers). The breadth and quality of our product and service offerings 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

View Full Filing

View this 10-K filing on SEC EDGAR