Bread Financial Holdings, Inc. Q3 2024 10-Q Filing

TL;DR

**BFH Q3 2024 10-Q filed. Financials look steady, watch for loan portfolio performance.**

AI Summary

Bread Financial Holdings, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Key financial data points and operational updates are presented for the third quarter of 2024.

Why It Matters

This filing provides investors and analysts with a detailed look into Bread Financial's financial health and operational performance during the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, Bread Financial is subject to market, credit, and regulatory risks inherent in the lending and credit card industry.

Key Numbers

• 2024 Q3 — Reporting Period (Financial results for the third quarter of 2024 are detailed.)
• 12-31 — Fiscal Year End (Indicates the company's fiscal year concludes on December 31st.)

Key Players & Entities

• BREAD FINANCIAL HOLDINGS, INC. (company) — Filer of the 10-Q
• COLUMBUS (location) — City of company's business and mailing address
• 20240930 (date) — Conformed period of report
• 20241031 (date) — Filed as of date

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share BFH New York Stock Exchange
• $316 million — repurchase a portion of our outstanding $316 million aggregate principal amount of 4.25% Con
• $96 million — o non-interest expenses. This aggregate $96 million impact is reflected in Total non-intere
• $5 million — interest expenses, with a corresponding $5 million favorable tax impact, also reflected in
• $6.5 billion — od in the prior year. Credit sales of $6.5 billion were down 3% year-over-year reflecting
• $17.8 billion — Average credit card and other loans of $17.8 billion increased 1%, also driven primarily by
• $17.9 billion — f-period credit card and other loans of $17.9 billion were flat year-over-year. Total interes
• $3 m — ver-year, Non-interest income decreased $3 million, primarily driven by a decrease i
• $983 m — non-interest income for the quarter was $983 million, down 5% versus the third quarter
• $22 million — the third quarter of 2023, driven by a $22 million reserve build in the current year perio
• $347 million — s also includes net principal losses of $347 million and $304 million during those same resp
• $304 million — et principal losses of $347 million and $304 million during those same respective periods.
• $574 million — folio. Total non-interest expenses of $574 million increased 14% from the third quarter of
• $7.5 billion — Additionally, DTC deposits increased to $7.5 billion as of September 30, 2024, with average
• $10 million — sult in a modest shift of approximately $10 million in net credit losses from the fourth qu

Filing Documents

• bfh-20240930.htm (10-Q) — 2042KB
• bfh-09302024xexx311.htm (EX-31.1) — 11KB
• bfh-09302024xexx312.htm (EX-31.2) — 11KB
• bfh-09302024xexx321.htm (EX-32.1) — 5KB
• bfh-09302024xexx322.htm (EX-32.2) — 5KB
• bfh-20240930_g1.jpg (GRAPHIC) — 14KB
• 0001101215-24-000224.txt ( ) — 9255KB
• bfh-20240930.xsd (EX-101.SCH) — 65KB
• bfh-20240930_cal.xml (EX-101.CAL) — 86KB
• bfh-20240930_def.xml (EX-101.DEF) — 257KB
• bfh-20240930_lab.xml (EX-101.LAB) — 701KB
• bfh-20240930_pre.xml (EX-101.PRE) — 493KB
• bfh-20240930_htm.xml (XML) — 1480KB

: FINANCIAL INFORMATION

Part I: FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 28 Consolidated Statements of Comprehensive Income for the three and ni n e months ended September 30 , 2024 and 2023 29 Consolidated Balance Sheets as of September 30 , 2024 and December 31, 2023 30 Consolidated Statements of Stockholders' Equity for the three and ni n e months ended September 30 , 2024 and 2023 31 Consolidated Statements of Cash Flows for the three months ended September 30 , 2024 and 2023 33

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 34 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) 1 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 4.

Controls and Procedures

Controls and Procedures 60

: OTHER INFORMATION

Part II: OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 61 Item 1A.

Risk Factors

Risk Factors 61 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 61 Item 3. Defaults Upon Senior Securities 61 Item 4. Mine Safety Disclosures 61 Item 5. Other Information 61 Item 6. Exhibits 63

SIGNATURES

SIGNATURES 65 Table of Contents PART 1: FINANCIAL INFORMATION

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A). The following discussion and analysis of our results of operations and financial condition should be read in conjunction with the unaudited Consolidated Financial Statements and related notes thereto presented in this quarterly report and the audited Consolidated Financial Statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the SEC) on February 20, 2024 (the 2023 Form 10-K). Some of the information contained in this discussion and analysis constitutes forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those discussed in these forward-looking statements. See "Cautionary Note Regarding Forward-Looking Statements" included elsewhere in this report. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and those identified in our other filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our 2023 Form 10-K and this and our other Quarterly Reports on Form 10-Q. OVERVIEW 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 acces

View Full Filing

View this 10-Q filing on SEC EDGAR