
Recent Developments and Outlook

RECENT DEVELOPMENTS

Management’s Response to the COVID-19 Pandemic

COVID-19 evolved into a global pandemic, resulting in widespread volatility and deterioration in economic conditions across the United States. Governmental authorities continue to take steps to combat the spread of COVID-19, including the distribution of COVID-19 vaccines, which over time are designed to create “herd immunity” and diminish, if not eliminate, the crisis. At this time, the vaccination program has accelerated in many states to allow all adults to receive the vaccines. In the meantime, we have continued to focus on assisting and supporting our customers and employees, while remaining committed to the safety of our employees. We continue to serve our customers by keeping our branch locations open with appropriate protective protocols in place and through our digital closing solutions. This combination has enhanced our operating performance through the pandemic and enabled us to serve and support our customers effectively during these unprecedented times. We believe the actions we have taken and the underlying strength of our balance sheet positions us to take advantage of growth opportunities as the economy continues to recover.

Redemption of 7.75% Senior Notes due 2021

On January 8, 2021, OMFC paid a net aggregate amount of $681 million, inclusive of accrued interest and premiums, to complete the redemption of its 7.75% Senior Notes due 2021. For further information regarding the redemption of our unsecured debt, see Note 6 of the Notes to the Condensed Consolidated Financial Statements included in this report.

Cash Dividends to OMH's Common Stockholders

On February 8, 2021, OMH declared a dividend of $3.95 per share payable on February 25, 2021 to record holders of OMH's common stock as of the close of business on February 18, 2021. For information regarding the quarterly dividends declared by OMH, see “Liquidity and Capital Resources” ~~of the~~under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.

~~Stock~~Apollo-Värde Group Share Sale

On February 11, 2021, we entered into an underwriting agreement with certain entities managed by affiliates of Apollo-Värde Group, in their capacities as selling stockholders (together, the “Selling Stockholders”), and Barclays Capital Inc. and Citigroup Global Markets Inc., as representatives of the several underwriters (the “Underwriters”), for the sale by the Selling Stockholders of up to 9,200,000 shares of the OMH’s common stock, which included an option for the Underwriters to purchase up to 1,200,000 shares of the common stock. The shares sold by the Selling Stockholders were beneficially owned by the Apollo-Värde Group. On February 12, 2021, the Underwriters exercised in full their option to purchase additional shares of common stock, and on February 16, 2021, the offering and sale of 9,200,000 shares by the Selling Stockholders to the Underwriters was completed. We did not receive any proceeds from the sale of the shares by the Selling Stockholders.

Share Repurchase Program

~~During~~In the second quarter ~~ended March 31, 2020,~~of 2021, the ~~OMH Board of Directors approved~~Company announced plans to commence a ~~stock~~$150 million share repurchase program. For information regarding the share repurchase program, ~~which allowed us to repurchase up to $200 million~~see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of ~~OMH’s outstanding common stock. See Note 11~~Financial Condition and Results of ~~the Notes to the Condensed Consolidated Financial Statements and Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of Part II included~~Operations in this ~~report for further information on our shares repurchased.~~

~~Appointment of Member of the SFC Board of Directors and Executive Vice President of SFC~~

On January 2, 2020, Adam L. Rosman was appointed to the SFC Board of Directors and as Executive Vice President. Mr. Rosman replaced John C. Anderson, who resigned as a member of SFC's board of directors and as Executive Vice President on January 2, 2020.

report.

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OUTLOOK

~~COVID-19 has evolved into a global pandemic and has spread to many regions of~~While we are actively managing the world, including the United States. We are closely tracking the evolving impact of COVID-19 and are focused on helping our customers and employees through these difficult times. We are generally classified as an essential business by government authorities as we play a vital role by providing over 2.4 million personal loans to hardworking Americans in hundreds of local communities where we have over 1,500 branches that are located in 44 states as of March 31, 2020. Our central operations remain operational and essentially all our branches remain open.

~~As it became apparent COVID-19 would have an impact to our business and our customers, we took active and decisive steps to implement an immediate COVID-19 operational response to:~~

•~~Maintain strong capital and liquidity:~~ We have a strong balance sheet and liquidity profile as a result of numerous actions taken over the last several years to increase conduit lines, deleverage and extend our maturities. We elected to draw an aggregate $3.5 billion under our conduit facilities as of March 31, 2020 as a prudent measure in order to increase liquidity and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 pandemic. It has been the long-term strategy of the Company to run a conservative balance sheet which places a premium on safety and a long liquidity runway. As a result, we had $4.2 billion of cash and cash equivalents as of March 31, 2020, which we believe is sufficient to run our operation under numerous stress scenarios through 2021. We believe our liquidity runway could be further extended with our $3.6 billion of undrawn committed capacity under our revolving conduit facilities and our $6.1 billion of unencumbered personal loans.

•~~Tighten underwriting:~~ We actively monitor the changing economic environment and adjust our underwriting standards accordingly. We quickly took steps to tighten underwriting standards and reduce originations to higher risk categories of lending. We are using our decades of experience and proprietary data to serve our customers while maintaining an appropriately conservative portfolio risk-management program.

•~~Continuous stress testing:~~ ~~It is our practice to stress test our portfolio regularly. For the last several years, our underwriting models have incorporated the estimated~~ impacts ~~of a potential downturn, such that our pre-provision return suggests we maintain profitability with a 100% increase in losses.~~

•~~Focus on serving our customers:~~ Our top priority is to service and care for our current customers. We actively engaged with other lenders to put forward solutions to help our customers through this difficult time. We have taken steps to enhance our servicing capacity by shifting branch team members toward a greater focus on servicing existing loans. This is in addition to our employees who are already solely focused on servicing, which we believe is a clear differentiator for us and will lead to better outcomes for our customers and for our business. In addition, we have enhanced our borrower assistance program to ensure that we can help customers who are immediately impacted by the coronavirus, including offering reduced and deferred payment options, waiving late fees for payments due March 15, 2020 through April 30, 2020, and suspending credit bureau reporting for newly delinquent accounts. The enrollment in our borrower assistance program may increase in the near term, which may also adversely affect our income and other results of operations.

•~~Deploy business continuity plans:~~ We deployed business continuity plans to ensure operational flexibility through any environment, including the ability to work remotely. Our hybrid operating model, with fully scaled branch and central operations teams, can dynamically reroute application and servicing capabilities to service centers and branches across the United States. Although a small number of branches have been temporarily closed and reopened for a variety of reasons, from deep cleaning to government mandate, all of our teams, both branch and central operations, remain operational today. We continue to serve our customers by appointment while maintaining social distancing and other safety protocols to keep our employees and customers safe.

Certain preliminary borrower trends have emerged in connection with the COVID-19 pandemic. A tightening of our underwriting standards, combined with significantly lower consumer demand, has led to a significant reduction in originations volume. However, delinquencies have declined thus far in April 2020 when compared to March 2020 due in part to our enhanced borrower assistance program and to increased cash payments.

~~Table of Contents~~

~~As a result~~ of the COVID-19 pandemic and are prepared to face any additional challenges that may impact our industry, we expect ~~near term~~near-term impacts to continue to affect our ~~originations, reserves,~~originations. The ultimate impact on our financial condition and ~~involuntary~~results of operations depends on the speed of the economic recovery, driven by distribution and effectiveness of the COVID-19 vaccines, government stimulus measures, states reopening, and ultimately unemployment ~~insurance claims. Our credit tightening measures, combined with reduced customer~~rates. There is also uncertainty regarding the effects of additional strains of COVID-19 and the impact of any related government actions, including the recently enacted American Rescue Plan Act of 2021. To the extent economies are suppressed or slow to recover, we could see lower consumer demand, ~~may result in lower originations~~higher delinquency trends, and related losses. We will continue to incorporate updates, as “stay at home” orders remain in place and economic uncertainty remains high. We may experience further changes to the macroeconomic assumptions within our forecast used in our credit loss allowance model, as well as changesnecessary, to our ~~loan loss performance outlook, both of~~macroeconomic assumptions which could lead to further ~~changes~~adjustments in our allowance for ~~loan~~finance receivable losses, ~~reserve rate,~~allowance ratio, and provision ~~expense.~~for finance receivable losses.

~~The full extent to~~To further expand the ways in which the COVID-19 pandemic will impact our business and operating results will depend on future developments that are highly uncertain and cannot be accurately predicted, including new information that may emerge concerning COVID-19 and the mitigation efforts by government entities, as well as our own immediate COVID-19 operational response. We have and will continue to take active and decisive steps in this time of uncertainty and remain committed to the safety of our employees, while also continuing to servewe help our customers ~~by remaining open with appropriate protective protocols in place. We~~improve their financial well-being, on April 26, 2021, we announced that we have ~~served working Americans for many decades at scale, through both changing economic~~entered into an agreement to acquire Trim, a customer-focused financial wellness fintech company. The acquisition of Trim, subject to completion of standard closing conditions, ~~and natural disasters, and~~ will ~~continue~~enhance OneMain’s digital features designed to help its customers progress to a better financial future.

Our experienced management team continues to remain focused on our strategic priorities of ~~strong~~maintaining a solid balance sheet, providing a flexible liquidity runway and capital coverage, upholding a conservative and disciplined underwriting model, and ~~serving~~building strong relationships with our customers. We are well positioned to continue to support and serve our customers, invest in our business and drive growth while creating value for our stockholders and effectively navigating the evolving economic, social, political, and regulatory environments in which we operate. We further describe our key initiatives and strategies under “Recent Developments and Outlook” of the Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II - Item 7 included in our Annual Report.

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Results of Operations

The results of ~~SFC~~OMFC are consolidated into the results of OMH. Due to the nominal differences between ~~SFC~~OMFC and OMH, content throughout this section ~~relate~~relates only to OMH. See Note 21 of the Notes to the Condensed Consolidated Financial Statements included in this report for ~~the reconciliation of results of SFC to OMH.~~further information.

OMH'S CONSOLIDATED RESULTS

See the table below for OMH's consolidated operating results and selected financial statistics. A further discussion of OMH's operating results for our operating segment is provided under “Segment Results” below.

At or for the
Three Months Ended March 31,
(dollars in millions, except per share amounts) 2020 2019
Interest income $ 1,106 $ 956
Interest expense 255 236
Provision for finance receivable losses 531 286
Net interest income after provision for finance receivable losses 320 434
Other revenues 141 148
Other expenses 418 380
Income before income taxes 43 202
Income taxes 11 50
Net income $ 32 $ 152
Share Data:
Earnings per share:
Diluted $ 0.24 $ 1.11
Selected Financial Statistics *
Finance receivables held for investment:
Net finance receivables $ 18,269 $ 16,136
Number of accounts 2,400,536 2,326,835
Average net receivables $ 18,380 $ 16,146
Yield 24.17 % 23.92 %
Gross charge-off ratio 7.35 % 7.82 %
Recovery ratio (0.90) % (0.70) %
Net charge-off ratio 6.45 % 7.12 %
30-89 Delinquency ratio 2.25 % 1.93 %
Origination volume $ 2,589 $ 2,582
Number of accounts originated 276,773 276,329
Debt balances:
Long-term debt balance $ 20,443 $ 16,117
Average daily debt balance 17,675 15,839



	At or for the Three Months Ended March 31,
(dollars in millions, except per share amounts)	2021			2020

Interest income	$	1,060		$	1,106
Interest expense	235			255
Provision for finance receivable losses	(2)			531
Net interest income after provision for finance receivable losses	827			320

Other revenues	91			141
Other expenses	372			418
Income before income taxes	546			43
Income taxes	133			11
Net income	$	413		$	32



Share Data:



Earnings per share:

Diluted	$	3.06		$	0.24

Selected Financial Statistics *
Finance receivables held for investment:
Net finance receivables	$	17,564		$	18,269
Number of accounts	2,229,609			2,400,536




Average net receivables	$	17,824		$	18,380
Yield	24.08		%	24.17		%
Gross charge-off ratio	5.81		%	7.35		%
Recovery ratio	(1.14)		%	(0.90)		%
Net charge-off ratio	4.67		%	6.45		%
30-89 Delinquency ratio	1.57		%	2.25		%
Origination volume	$	2,284		$	2,589
Number of accounts originated	225,102			276,773
Debt balances:
Long-term debt balance	$	16,789		$	20,443
Average daily debt balance	17,035			17,675

* See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.

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Comparison of Consolidated Results for theThree Months Ended March 31, ~~2020~~2021 and ~~2019~~2020

Interest income ~~increased $150~~decreased $46 million or ~~16%~~4.2% for the three months ended March 31, ~~2020~~2021 when compared to the same period in ~~2019~~2020 primarily due to ~~growth~~a decrease in our ~~loan portfolio.~~average net finance receivables.

Interest expense ~~increased $19~~decreased $20 million or 8%7.8% for the three months ended March 31, ~~2020~~2021 when compared to the same period in ~~2019~~2020 primarily due to ~~an increase~~a decrease in average debt ~~of $1.8 billion, which was issued at~~along with a lower ~~cost than our~~ average cost of ~~funds and is consistent with the growth in our loan portfolio.~~

funds. See Notes 86 and 97 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information on our long-term debt, securitization transactions, and our revolving conduit facilities.

Provision for finance receivable losses ~~increased $245~~decreased $533 million for the three months ended March 31, 2021 when compared to the same period in 2020 primarily due to the decrease in our charge-offs and the expectation of improved unemployment and anticipated economic recovery from the COVID-19 pandemic as compared to a build in our allowance reserve in the same period in 2020 primarily due to the uncertainty of expected credit losses at the onset of the COVID-19 pandemic.

Other revenues decreased $50 million or ~~86%~~35.5% for the three months ended March 31, 2021 when compared to the same period in 2020 primarily due to a $47 million net loss on the repayment of debt in the current period and a decrease in insurance products sold due to reduced loan origination volume, partially offset by an increase in investment revenue primarily driven by higher mark-to-market net gains on other securities.

Other expenses decreased $46 million or 11.0% for the three months ended March 31, 2021 when compared to the same period in 2020 primarily due to a $35 million decrease in insurance policy and benefits claims expense due to lower than expected involuntary unemployment insurance claims along with a decrease in general operating expenses, reflecting our efforts to manage costs through the pandemic, offset by our strategic investments in the business.

Income taxes totaled $133 million for the three months ended March 31, 2021 compared to $11 million for the three months ended March 31, 2020 ~~when compared to the same period in 2019 primarily~~ due to the impact of COVID-19 on our estimated allowance for loan loss requirement as we have incorporated unfavorable forecasted economic trends, including a rise in unemployment, and as a result, our allowance for finance receivable losses as a percentage of finance receivableshigher pre-tax income in the ~~current period increased from 10.6% to 11.9%.~~

~~Other revenues~~ ~~decreased $7 million or 5% for~~first quarter of 2021. For the three months ended March 31, 2021 and 2020, ~~when compared to~~ the ~~same period in 2019 primarily due to a $17 million decrease in investment revenue primarily driven by mark-to-market losses on equity investment securities~~effective tax rates were 24.4% and an $11 million decrease related to the net gain on sale of a cost method investment in the prior period. The decrease was partially offset by a $21 million increase related to the net loss on repurchases and repayments of debt in the prior period and a $7 million increase in insurance products sold due to higher loan volume.

~~Other expenses~~ increased $38 million or 10% for the three months ended March 31, 2020 when compared to the same period in 2019 due to a $23 million increase in insurance policy benefits and claims primarily related to an increase in involuntary unemployment insurance claims reserves, a $10 million increase in our marketing initiatives, and our continued investment in our business operations.

~~Income taxes~~ ~~decreased $39 million or 78% for the three months ended March 31, 2020 when compared to the same period in 2019 due to lower pre-tax income in the current period.~~24.3%, respectively. The effective tax ~~rate for the three months ended March 31, 2020 was 24.3% compared to 24.8% for the same period in 2019. The effective tax~~ rates ~~for the three months ended March 31, 2020 and 2019~~ differed from the federal statutory rate of 21% primarily due to the effect of state income taxes.

See Note 1311 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information on effective tax rates.

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NON-GAAP FINANCIAL MEASURES

Management uses adjusted pretax income (loss), a non-GAAP financial measure, as a key performance measure of our segment. Adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes direct costs ~~incurred as result of~~associated with COVID-19, acquisition-related transaction and integration expenses, net loss resulting from repurchases and repayments of debt, ~~acquisition-related transaction~~ and ~~integration expenses, net gain on sale~~lower of cost ~~method investment, restructuring charges, and net loss~~or fair value adjustment on ~~sale of real estate loans.~~loans held for sale. Management believes adjusted pretax income (loss) is useful in assessing the profitability of our segment.

Management also uses ~~adjusted pretax income (loss) excluding the change in allowance for finance receivables losses (“~~pretax capital ~~generation”),~~generation, a non-GAAP financial measure, as a key performance measure of our segment. This measure represents adjusted pretax income as discussed above and excludes the change in our allowance for finance receivable losses in the period while still considering the net charge-offs incurred during the period. Management believes that pretax capital generation is useful in assessing the capital created in the period impacting the overall capital adequacy of the Company. Management believes that the Company’s reserves, combined with ~~our~~its equity, represent the Company’s loss absorption ~~of the Company.~~capacity.

Management utilizes both adjusted pretax net income (loss) and pretax capital generation in evaluating our performance. Additionally, both of these non-GAAP measures are consistent with the performance goals established in OMH’s executive compensation program. Adjusted pretax income (loss) and pretax capital generation are non-GAAP financial measures and should be considered supplemental to, but not as a substitute for or superior to, income (loss) before income taxes, net income, or other measures of financial performance prepared in accordance with GAAP.

OMH's reconciliations of income (loss) before income tax expense (benefit) on a Segment Accounting Basis to adjusted pretax income (loss) (non-GAAP) by segment and Consumer and Insurance pretax capital generation (non-GAAP) were as follows:

Three Months Ended March 31,
(dollars in millions) 2020 2019
Consumer and Insurance
Income before income taxes - Segment Accounting Basis $ 51 $ 232
Adjustments:
Direct costs associated with COVID-19 3 —
Acquisition-related transaction and integration expenses 6 6
Net loss on repurchase and repayment of debt — 16
Net gain on sale of cost method investment — (11)
Restructuring charges — 3
Adjusted pretax income (non-GAAP) $ 60 $ 246
Provision for finance receivable losses $ 530 $ 276
Net charge-offs (296) (284)
Pretax capital generation (non-GAAP) $ 294 $ 238
Other
Loss before income taxes - Segment Accounting Basis $ (1) $ (3)
Adjustments:
Net loss on sale of real estate loans * — 1
Adjusted pretax loss (non-GAAP) $ (1) $ (2)



	Three Months Ended March 31,
(dollars in millions)	2021		2020

Consumer and Insurance
Income before income taxes - Segment Accounting Basis	$	567	$	51
Adjustments:
Direct costs associated with COVID-19	2		3
Acquisition-related transaction and integration expenses	—		6
Net loss on repurchases and repayments of debt	38		—


Adjusted pretax income (non-GAAP)	$	607	$	60

Provision for finance receivable losses	$	(3)	$	530
Net charge-offs	(205)		(296)
Pretax capital generation (non-GAAP)	$	399	$	294











Other
Loss before income taxes - Segment Accounting Basis	$	(3)	$	(1)
Adjustments:

Lower of cost or fair value adjustment (a)	1		—






Adjusted pretax loss (non-GAAP)	$	(2)	$	(1)

* During(a) The carrying value of our remaining real estate loans classified in finance receivables held for sale exceeded their fair value, and accordingly, we have marked the loans to fair value and recorded an impairment in other revenue during the three months ended March 31, 2019, the resulting impairment on finance receivables held for sale remaining after the February 2019 Real Estate Loan Sale has been combined with the gain on the sale. See Note 6 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information regarding the real estate loan sale.

2021.

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Direct costs associated with COVID-19 include (i) information technology costs to transition employees to work remotely, (ii) branch, central operations, and corporate locations sanitization services and supplies, and (iii) other costs and fees directly related to COVID-19.

Acquisition-related transaction and integration expenses incurred as a result of the OneMain Acquisition includes (i) compensation and employee benefit costs, such as retention awards and severance costs, (ii) accelerated amortization of acquired software assets, (iii) rebranding to the OneMain brand, (iv) branch infrastructure and other fixed asset integration costs, (v) information technology costs, such as internal platform development, software upgrades and licenses, and technology termination costs, (vi) legal fees and project management costs, (vii) system conversions, including human capital management, marketing, risk, and finance functions, and (viii) other costs and fees directly related to the OneMain Acquisition and integration.

Table of Contents


Segment Results

The results of ~~SFC~~OMFC are consolidated into the results of OMH. Due to the nominal differences between ~~SFC~~OMFC and OMH, content throughout this section relate only to OMH. See Note 21 of the Notes to the Condensed Consolidated Financial Statements included in this report for ~~the reconciliation of results of SFC to OMH.~~further information.

See Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2019 Annual Report on Form 10-K for a description of our segments and methodologies used to allocate revenues and expenses to each segment. See Note 1513 of the Notes to the Condensed Consolidated Financial Statements included in this report for ~~reconciliations~~a description of our segment ~~total~~and methodologies used to ~~condensed consolidated financial statement amounts.~~allocate revenues and expenses to our C&I segment and Other.

CONSUMER AND INSURANCE

OMH's adjusted pretax income and selected financial statistics for C&I on an adjusted Segment Accounting Basis were as follows:

At or for the
Three Months Ended March 31,
(dollars in millions) 2020 2019
Interest income $ 1,101 $ 954
Interest expense 249 229
Provision for finance receivable losses 530 276
Net interest income after provision for finance receivable losses 322 449
Other revenues 136 151
Other expenses 398 354
Adjusted pretax income (non-GAAP) $ 60 $ 246
Selected Financial Statistics *
Finance receivables held for investment:
Net finance receivables $ 18,283 $ 16,170
Number of accounts 2,400,536 2,326,835
Average net receivables $ 18,397 $ 16,179
Yield 24.07 % 23.92 %
Gross charge-off ratio 7.36 % 7.92 %
Recovery ratio (0.90) % (0.81) %
Net charge-off ratio 6.46 % 7.11 %
30-89 Delinquency ratio 2.26 % 1.94 %
Origination volume $ 2,589 $ 2,582
Number of accounts originated 276,773 276,329



	At or for the Three Months Ended March 31,
(dollars in millions)	2021			2020

Interest income	$	1,057		$	1,101
Interest expense	233			249
Provision for finance receivable losses	(3)			530
Net interest income after provision for finance receivable losses	827			322
Other revenues	136			136
Other expenses	356			398
Adjusted pretax income (non-GAAP)	$	607		$	60


Selected Financial Statistics *
Finance receivables held for investment:
Net finance receivables	$	17,569		$	18,283
Number of accounts	2,229,609			2,400,536

Average net receivables	$	17,830		$	18,397
Yield	24.04		%	24.07		%
Gross charge-off ratio	5.81		%	7.36		%
Recovery ratio	(1.14)		%	(0.90)		%
Net charge-off ratio	4.67		%	6.46		%
30-89 Delinquency ratio	1.57		%	2.26		%
Origination volume	$	2,284		$	2,589
Number of accounts originated	225,102			276,773

* See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.

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Comparison of Adjusted Pretax Income for the Three Months Ended March 31, ~~2020~~2021 and ~~2019~~2020

Interest income ~~increased $147~~decreased $44 million or ~~15%~~4.0% for the three months ended March 31, ~~2020~~2021 when compared to the same period in ~~2019~~2020 primarily due to ~~growth~~a decrease in our ~~loan portfolio.~~average net finance receivables.

Interest expense ~~increased$20~~decreased $16 million or 9%6.4% for the three months ended March 31, ~~2020~~2021 when compared to the same period in ~~2019~~2020 primarily due to ~~an increase~~a decrease in average debt ~~of $1.8 billion, which was issued at~~along with a lower ~~cost than our~~ average cost of ~~funds and is consistent with the growth in our loan portfolio.~~

Provision for finance receivable losses ~~increased $254~~decreased $533 million ~~or 92%~~ for the three months ended March 31, ~~2020~~2021 when compared to the same period in ~~2019~~2020 primarily due to the ~~impact~~decrease in our charge-offs and the expectation of ~~COVID-19 on our estimated allowance for loan loss requirement as we have incorporated unfavorable forecasted economic trends, including a rise in~~improved unemployment and anticipated economic recovery from the COVID-19 pandemic as compared to a ~~result,~~build in our allowance ~~for finance receivable losses as a percentage of finance receivables~~reserve in the ~~current~~same period ~~increased from 10.6%~~in 2020 primarily due to ~~11.9%.~~the uncertainty of expected credit losses at the onset of the COVID-19 pandemic.

Other revenues ~~decreased $15 million or 10%~~ for the three months ended March 31, ~~2020 when compared to~~2021 remained consistent with the same period in ~~2019~~2020 primarily due to a decrease in insurance products sold due to reduced loan origination volume, offset by an ~~$18 million decrease~~increase in investment revenue primarily driven by higher mark-to-market ~~losses~~net gains on ~~equity investment securities offset by a $7 million increase in insurance products sold due to higher loan volume.~~other securities.

Other expenses ~~increased $44~~decreased $42 million or ~~12%~~10.6% for the three months ended March 31, ~~2020~~2021 when compared to the same period in ~~2019~~2020 primarily due to a ~~$23~~$35 million ~~increase~~decrease in insurance policy and benefits ~~and~~ claims ~~primarily related~~expense due to ~~an increase in~~lower than expected involuntary unemployment insurance claims ~~reserves,~~along with a ~~$10 million increase~~decrease in general operating expenses, reflecting our ~~marketing initiatives, and~~efforts to manage costs through the pandemic, offset by our ~~continued investment~~strategic investments in ~~our business operations.~~the business.

~~Table of Contents~~

OTHER

“Other” consists of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which ~~includes~~ primarily include our liquidating real estate loans.

OMH's adjusted pretax loss of the Other components on an adjusted Segment Accounting Basis was as follows:

Three Months Ended March 31,
(dollars in millions) 2020 2019
Interest income $ 2 $ 3
Interest expense 1 2
Net interest income after provision for finance receivable losses 1 1
Other revenues 4 9
Other expenses 6 12
Adjusted pretax loss (non-GAAP) $ (1) $ (2)



	Three Months Ended March 31,
(dollars in millions)	2021		2020

Interest income	$	1	$	2
Interest expense	1		1

Net interest income after provision for finance receivable losses	—		1
Other revenues	4		4
Other expenses	6		6
Adjusted pretax loss (non-GAAP)	$	(2)	$	(1)

Net finance receivables of the Other components, reported in “Other assets,” on a Segment Accounting Basis were as follows:

March 31,
(dollars in millions) 2020 2019
Net finance receivables held for sale:
Other receivables $ 63 $ 79



	March 31,
(dollars in millions)	2021		2020






Net finance receivables held for sale:
Other receivables	$	46	$	63

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Credit Quality

The results of SFC are consolidated into the results of OMH. Due to the nominal differences between SFC and OMH, content throughout this section relate only to OMH. See Note 2 of the Notes to the Condensed Consolidated Financial Statements included in this report for the reconciliation of results of SFC to OMH.

FINANCE RECEIVABLES

Our net finance receivables, consisting of personal loans, were ~~$18.3~~$17.6 billion at March 31, ~~2020~~2021 and ~~$18.4~~$18.1 billion at December 31, ~~2019.~~2020. Our personal loans are non-revolving, with a fixed-rate, a fixed ~~term of~~terms generally between three toand six years, and are secured by automobiles, other titled collateral, or are unsecured. We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio. Our branch team members work with customers as necessary and offer a variety of borrower assistance programs to help customers continue to make payments.

DELINQUENCY

We monitor delinquency trends to evaluate the risk of future credit losses and employ advanced analytical tools to manage our exposure. ~~Our branch team members work with customers through occasional periods of financial difficulty and offer a variety of borrower assistance programs to help customers continue to make payments.~~ Team members ~~also~~are actively ~~engage~~engaged in collection activities throughout the early stages of delinquency. We closely track and report the percentage of receivables that are contractually 30-89 days past due as a benchmark of portfolio quality, collections effectiveness, and as a strong indicator of losses in coming quarters.

When finance receivables are contractually 60 days past due, we consider these accounts to be at an increased risk for loss and we transfer collection of these accounts to our centralized operations. Use of our centralized operations teams for managing late stage delinquency allows us to apply more advanced collection technologies and tools, and drives operating efficiencies in servicing. At 90 days contractually past due, we consider our finance receivables to be nonperforming. We stop accruing finance charges and reverse finance charges previously accrued on nonperforming loans.

5545

Table of Contents

The delinquency information for net finance receivables is as follows:


(dollars in millions)	(dollars in millions)	Consumer and Insurance			Segment to GAAP Adjustment (a)		GAAP Basis			(dollars in millions)	Consumer and Insurance			Segment to GAAP Adjustment		GAAP Basis

March 31, 2020
March 31, 2021										March 31, 2021
Current	Current	$	17,475		$	(12)	$	17,463		Current	$	16,973		$	(5)	$	16,968
30-59 days past due	30-59 days past due	246			(1)		245			30-59 days past due	157			—		157
Delinquent (60-89 days past due)	Delinquent (60-89 days past due)	167			—		167			Delinquent (60-89 days past due)	119			—		119
Performing	Performing	17,888			(13)		17,875			Performing	17,249			(5)		17,244

Nonperforming (90+ days past due)	Nonperforming (90+ days past due)	395			(1)		394			Nonperforming (90+ days past due)	320			—		320
Total net finance receivables	Total net finance receivables	$	18,283		$	(14)	$	18,269		Total net finance receivables	$	17,569		$	(5)	$	17,564

Delinquency ratio	Delinquency ratio									Delinquency ratio
30-89 days past due	30-89 days past due	2.26		%	(b)		2.25		%	30-89 days past due	1.57		%	*		1.57		%
30+ days past due	30+ days past due	4.42		%	(b)		4.41		%	30+ days past due	3.39		%	*		3.39		%
60+ days past due	60+ days past due	3.07		%	(b)		3.07		%	60+ days past due	2.50		%	*		2.50		%
90+ days past due	90+ days past due	2.16		%	(b)		2.16		%	90+ days past due	1.82		%	*		1.82		%

December 31, 2019
December 31, 2020										December 31, 2020
Current	Current	$	17,578		$	(28)	$	17,550		Current	$	17,362		$	(7)	$	17,355
30-59 days past due	30-59 days past due	273			(1)		272			30-59 days past due	251			—		251
Delinquent (60-89 days past due)	Delinquent (60-89 days past due)	182			(1)		181			Delinquent (60-89 days past due)	162			—		162
Performing	Performing	18,033			(30)		18,003			Performing	17,775			(7)		17,768

Nonperforming (90+ days past due)	Nonperforming (90+ days past due)	388			(2)		386			Nonperforming (90+ days past due)	316			—		316
Total net finance receivables	Total net finance receivables	$	18,421		$	(32)	$	18,389		Total net finance receivables	$	18,091		$	(7)	$	18,084

Delinquency ratio	Delinquency ratio									Delinquency ratio
30-89 days past due	30-89 days past due	2.47		%	(b)		2.46		%	30-89 days past due	2.28		%	*		2.28		%
30+ days past due	30+ days past due	4.58		%	(b)		4.56		%	30+ days past due	4.03		%	*		4.03		%
60+ days past due	60+ days past due	3.09		%	(b)		3.08		%	60+ days past due	2.64		%	*		2.64		%
90+ days past due	90+ days past due	2.11		%	(b)		2.10		%	90+ days past due	1.75		%	*		1.75		%

(a) As a result of the adoption of ASU 2016-13, we converted all purchased credit impaired finance receivables to purchased credit deteriorated finance receivables in accordance with ASC Topic 326, which resulted in the gross-up of net finance receivables and allowance for finance receivable losses of $15 million on January 1, 2020. See Notes 3, 4, and 5 of the Notes to the Condensed Consolidated Financial Statements for additional information on the adoption of ASU 2016-13 included in this report.

~~(b)~~* Not applicable

Table of Contents

ALLOWANCE FOR FINANCE RECEIVABLE LOSSES

We estimate and record an allowance for finance receivable losses to cover the estimated lifetime expected credit losses on our finance receivables, effective with the adoption of ASU 2016-13 on January 1, 2020. Prior to the adoption of ASU 2016-13, we estimated and recorded an allowance for finance receivable losses to cover estimated incurred losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon ~~our continual review of the~~changes in portfolio growth, credit quality, and ~~contractual delinquency of the finance receivable portfolio and changes in~~ economic conditions.

Our current methodology to estimate expected credit losses ~~utilized~~used the most recent macroeconomic forecasts, ~~as of March 31, 2020,~~ which incorporated the ~~potential impact that the~~projected impacts and expected recovery of COVID-19 ~~pandemic could have~~ on the U.S. economy. ~~Our forecast utilized economic projections from a major rating service, and~~We also considered ~~a spike in the second quarter unemployment rate followed by a recovery over the second half of the year, partially offset by positive impacts of the CARES Act,~~known government stimulus measures, the involuntary unemployment insurance coverage of our portfolio, and our borrower assistance efforts. AsOur forecast leveraged economic projections from an industry leading forecast provider. At March 31, 2021, our economic forecast used a ~~result, our allowance for finance receivable losses as a percentage~~reasonable and supportable period of ~~finance receivables increased from 10.6% to 11.9%.~~12 months. In the near-term, we may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for ~~loan~~finance receivable losses, ~~reserve rate~~allowance ratio, and provision ~~expense.~~for finance receivable losses.

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


(dollars in millions)	(dollars in millions)	Consumer and Insurance			Segment to GAAP Adjustment		Consolidated Total			(dollars in millions)	Consumer and Insurance			Segment to GAAP Adjustment		Consolidated Total

Three Months Ended March 31, 2020
Three Months Ended March 31, 2021										Three Months Ended March 31, 2021
Balance at beginning of period	Balance at beginning of period	$	849		$	(20)	$	829		Balance at beginning of period	$	2,283		$	(14)	$	2,269
Impact of adoption of ASU 2016-13 (a)		1,119			(1)		1,118
Provision for finance receivable losses	Provision for finance receivable losses	530			1		531			Provision for finance receivable losses	(3)			1		(2)
Charge-offs	Charge-offs	(337)			—		(337)			Charge-offs	(255)			—		(255)
Recoveries	Recoveries	41			—		41			Recoveries	50			—		50
Balance at end of period	Balance at end of period	$	2,202		$	(20)	$	2,182		Balance at end of period	$	2,075		$	(13)	$	2,062

Allowance ratio	Allowance ratio	12.05		%	(b)		11.95		%	Allowance ratio	11.81		%	(b)		11.74		%

Three Months Ended March 31, 2019
Three Months Ended March 31, 2020										Three Months Ended March 31, 2020
Balance at beginning of period	Balance at beginning of period	$	773		$	(42)	$	731		Balance at beginning of period	$	849		$	(20)	$	829
Impact of adoption of ASU 2016-13 (a)										Impact of adoption of ASU 2016-13 (a)	1,119			(1)		1,118
Provision for finance receivable losses	Provision for finance receivable losses	276			10		286			Provision for finance receivable losses	530			1		531
Charge-offs	Charge-offs	(316)			5		(311)			Charge-offs	(337)			—		(337)
Recoveries	Recoveries	32			(5)		27			Recoveries	41			—		41
Balance at end of period	Balance at end of period	$	765		$	(32)	$	733		Balance at end of period	$	2,202		$	(20)	$	2,182

Allowance ratio	Allowance ratio	4.73		%	(b)		4.54		%	Allowance ratio	12.05		%	(b)		11.95		%



GLOSSARY		4

PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements of OneMain Holdings, Inc. and Subsidiaries (Unaudited):
	Condensed Consolidated Balance Sheets	6
	Condensed Consolidated Statements of Operations	7
	Condensed Consolidated Statements of Comprehensive Income (Loss)	8
	Condensed Consolidated Statements of Shareholders’ Equity	9
	Condensed Consolidated Statements of Cash Flows	10
	Financial Statements of ~~Springleaf~~OneMain Finance Corporation and Subsidiaries (Unaudited):
	Condensed Consolidated Balance Sheets	11
	Condensed Consolidated Statements of Operations	12
	Condensed Consolidated Statements of Comprehensive Income (Loss)	13
	Condensed Consolidated Statements of ~~Shareholder~~’s Shareholder’s Equity	14
	Condensed Consolidated Statements of Cash Flows	15
	Notes to the Condensed Consolidated Financial Statements	1716
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4134
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	6553
Item 4.	Controls and Procedures	6654
	Controls and Procedures of OneMain Holdings, Inc.	6654
	Controls and Procedures of ~~Springleaf~~OneMain Finance Corporation	6654

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	6755
Item 1A.	Risk Factors	6755
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6955
Item 3.	Defaults Upon Senior Securities	6955
Item 4.	Mine Safety Disclosures	6955
Item 5.	Other Information	6955
Item 6.	Exhibit Index	7056

~~SIGNATURE~~SIGNATURES
	OneMain Holdings, Inc. Signature	7157
	~~Springleaf~~OneMain Finance Corporation Signature	7258


Term or Abbreviation						Definition

2019 Annual Report on Form 10-K						~~Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on February 14, 2020~~
30-89 Delinquency ratio						net finance receivables 30-89 days past due as a percentage of net finance receivables















ABS						asset-backed securities
~~Accretable yield~~						~~the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows~~
Adjusted pretax income (loss)						a non-GAAP financial measure used by management as a key performance measure of our segment
AETR						annual effective tax rate
AHL						American Health and Life Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC


Annual Report						the Annual Report on Form 10-K of OMH and OMFC for the fiscal year ended December 31, 2020, filed with the SEC on February 9, 2021
AOCI						Accumulated other comprehensive income (loss)
Apollo						Apollo Global Management, LLC and its consolidated subsidiaries
Apollo-Värde Group						an investor group led by funds managed by Apollo and Värde

~~Apollo-Värde Transaction~~ARPA						~~the purchase by the Apollo-Värde Group~~American Rescue Plan Act of ~~54,937,500 shares of OMH common stock from SFH pursuant to the Share Purchase Agreement for an aggregate purchase price of approximately $1.4 billion in cash~~2021 signed into law on ~~June 25, 2018~~March 11, 2021
ASC						Accounting Standards Codification
ASU						Accounting Standards Update
ASU 2016-13						the accounting standard issued by FASB in June of 2016, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments
Average daily debt balance						average of debt for each day in the period
Average net receivables						average of monthly average net finance receivables (net finance receivables at the beginning and end of each month divided by two) in the period

Base Indenture						OMFC Indenture, dated as of December 3, 2014
CAA						Consolidated Appropriations Act of 2021 signed into law on December 27, 2020
CARES Act						Coronavirus Aid, Relief, and Economic Security Act signed into law ~~by President Trump~~ on March 27, 2020
C&I						Consumer and Insurance
CDO						collateralized debt obligations





CMBS						commercial mortgage-backed securities

~~Contribution~~						On June 22, 2018, SFC entered into a Contribution Agreement with SFI, a wholly-owned subsidiary of OMH. Pursuant to the Contribution Agreement, Independence Holdings, LLC was contributed by SFI to SFC.

COVID-19						the global outbreak of a novel strain of coronavirus






Exchange Act						Securities Exchange Act of 1934, as amended
FASB						Financial Accounting Standards Board
~~February 2019 Real Estate Loan Sale~~						SFC and certain of its subsidiaries sold a portfolio of real estate loans with a carrying value of $16 million, classified in finance receivables held for sale, for aggregate cash proceeds of $19 million on February 5, 2019

FICO score						a credit score created by Fair Isaac Corporation

~~Fortress~~						~~Fortress Investment Group LLC~~


GAAP						generally accepted accounting principles in the United States of America
GAP						guaranteed asset protection

Gross charge-off ratio						annualized gross charge-offs as a percentage of average net receivables
Gross finance receivables						the unpaid principal balance of our personal loans. For precompute loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges

~~Indenture~~Guaranty Agreements						agreements entered into on December 30, 2013 by OMH whereby it agreed to fully and unconditionally guarantee the ~~SFC Base Indenture, together with all subsequent Supplemental Indentures~~payments of principal, premium (if any), and interest on the Other Notes



~~IRS~~						~~Internal Revenue Service~~

Junior Subordinated Debenture						$350 million aggregate principal amount of 60-year junior subordinated debt issued by ~~SFC~~OMFC under an indenture dated January 22, 2007, by and between ~~SFC~~OMFC and Deutsche Bank Trust Company, as trustee, and guaranteed by OMH




~~Merit~~						~~Merit Life Insurance Co., a former insurance subsidiary of SFC. In the fourth quarter of 2019, the Company sold all of the issued and outstanding shares in Merit to a third party~~




Net charge-off ratio						annualized net charge-offs as a percentage of average net receivables
Net interest income						interest income less interest expense

ODART						OneMain Direct Auto Receivables Trust







~~OMFIT~~OMFC						OneMain ~~Financial Issuance Trust~~Finance Corporation (formerly Springleaf Finance Corporation)
~~OMH~~						~~OneMain Holdings, Inc.~~


Term or Abbreviation						Definition

~~OneMain Acquisition~~OMFIT						~~Acquisition of~~ OneMain Financial Issuance Trust
OMH						OneMain Holdings, Inc.

OneMain						OneMain Financial Holdings, LLC, ~~from CitiFinancial Credit Company, effective November 1, 2015~~collectively with its subsidiaries

Other securities						primarily consist of equity securities and those securities for which the fair value option was ~~elected and equity securities.~~elected. Other ~~Securities~~securities recognize unrealized gains and losses in investment revenues
Other ~~SFC~~ Notes						collectively, ~~SFC’s~~the 8.25% Senior Notes due 2023, ~~and 7.75% Senior Notes due 2021,~~ on a senior unsecured basis, and the Junior Subordinated Debenture, on a junior subordinated basis, issued by ~~SFC~~OMFC and guaranteed by OMH


Pretax capital generation						a non-GAAP financial measure used by management as a key performance measure of our segment, defined as adjusted pretax income (loss) excluding the change in allowance for finance receivable losses
Recovery ratio						annualized recoveries on net charge-offs as a percentage of average net receivables


RMBS						residential mortgage-backed securities
~~RSAs~~						~~restricted stock awards~~
~~RSUs~~						~~restricted stock units~~


~~SCLH~~						~~Springleaf Consumer Loan Holding Company~~

SEC						U.S. Securities and Exchange Commission
Securities Act						Securities Act of 1933, as amended
Segment Accounting Basis						a basis used to report the operating results of our C&I segment and our Other components, which reflects our allocation methodologies for certain costs and excludes the impact of applying purchase accounting

~~Settlement Agreement~~						~~a Settlement Agreement with the U.S. Department of Justice entered into by OMH and certain of its subsidiaries on November 13, 2015, in connection with the OneMain Acquisition~~
SFC						Springleaf Finance Corporation
~~SFC Base Indenture~~						~~Indenture, dated~~ (effective as of ~~December 3, 2014~~




July 1, 2020, SFC ~~Guaranty Agreements~~						~~agreements entered into on December 30, 2013 by OMH whereby it agreed~~was renamed to ~~fully and unconditionally guarantee the payments of principal, premium (if any), and interest on the Other SFC Notes, and the 6.00% Senior Notes due 2020, which were redeemed in full on April 15, 2019~~OMFC)







~~SFH~~						Springleaf Financial Holdings, LLC, an entity owned primarily by a private equity fund managed by an affiliate of Fortress that sold 54,937,500 shares of OMH's common stock to the Apollo-Värde Group in the Apollo-Värde Transaction
~~SFI~~						~~Springleaf Finance, Inc.~~

~~Share Purchase Agreement~~						a share purchase agreement entered into on January 3, 2018, among the Apollo-Värde Group, SFH and the Company to acquire from SFH 54,937,500 shares of OMH's common stock that was issued and outstanding as of such date, representing the entire holdings of OMH's stock beneficially owned by Fortress
~~SLFT~~						~~Springleaf Funding Trust~~
~~SMHC~~						~~Springleaf Mortgage Holding Company and subsidiaries~~







SpringCastle Portfolio						loans the Company previously owned and now services on behalf of a third party
Springleaf						OMH and its subsidiaries (other than OneMain)



Tax Act						Public Law 115-97 amending the Internal Revenue Code of 1986
TDR finance receivables						troubled debt restructured finance receivables. Debt restructuring in which a concession is granted to the borrower as a result of economic or legal reasons related to the borrower’s financial difficulties


Triton						Triton Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC

Unearned finance charges						the amount of interest that is capitalized at time of origination on a precompute loan that will be earned over the remaining contractual life of the loan
~~UPB~~						~~unpaid principal balance for interest bearing accounts and the gross remaining contractual payments less the unaccreted balance of unearned finance charges for precompute accounts~~
Värde						Värde Partners, Inc.
VIEs						variable interest entities

Weighted average interest rate						annualized interest expense as a percentage of average debt
XBRL						eXtensible Business Reporting Language
Yield						annualized finance charges as a percentage of average net receivables



(dollars in millions, except par value amount)	March 31, 2020		December 31, 2019

Assets
Cash and cash equivalents	$	4,203	$	1,227
Investment securities (includes available-for-sale securities with a fair value and amortized cost basis of $1.7 billion in 2020)	1,800		1,884
Net finance receivables (includes loans of consolidated VIEs of $12.1 billion in 2020 and $8.4 billion in 2019)	18,269		18,389
Unearned insurance premium and claim reserves	(797)		(793)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.4 billion in 2020 and $340 million in 2019)	(2,182)		(829)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	15,290		16,767

Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $567 million in 2020 and $400 million in 2019)	575		405
Goodwill	1,422		1,422
Other intangible assets	334		343
Other assets	1,069		769
Total assets	$	24,693	$	22,817

Liabilities and Shareholders’ Equity
Long-term debt (includes debt of consolidated VIEs of $10.9 billion in 2020 and $7.6 billion in 2019)	$	20,443	$	17,212
Insurance claims and policyholder liabilities	633		649
Deferred and accrued taxes	68		34
Other liabilities (includes other liabilities of consolidated VIEs of $17 million in 2020 and $14 million in 2019)	497		592
Total liabilities	21,641		18,487
Contingencies (Note 14)

Shareholders’ equity:
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 134,309,707 and 136,101,156 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	1		1
Additional paid-in capital	1,645		1,689
Accumulated other comprehensive income	(6)		44
Retained earnings	1,412		2,596
Total shareholders’ equity	3,052		4,330
Total liabilities and shareholders’ equity	$	24,693	$	22,817



(dollars in millions, except par value amount)	March 31, 2021		December 31, 2020

Assets
Cash and cash equivalents	$	1,301	$	2,272
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.9 billion and $1.8 billion in 2021, respectively, and $1.8 billion and $1.7 billion in 2020, respectively)	1,951		1,922
Net finance receivables (includes loans of consolidated VIEs of $8.2 billion in 2021 and $8.8 billion in 2020)	17,564		18,084
Unearned insurance premium and claim reserves	(719)		(771)
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.0 billion in 2021 and $1.1 billion in 2020)	(2,062)		(2,269)
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses	14,783		15,044

Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $553 million in 2021 and $441 million in 2020)	571		451
Goodwill	1,422		1,422
Other intangible assets	296		306

Other assets	961		1,054
Total assets	$	21,285	$	22,471

Liabilities and Shareholders’ Equity
Long-term debt (includes debt of consolidated VIEs of $7.4 billion in 2021 and $7.8 billion in 2020)	$	16,789	$	17,800
Insurance claims and policyholder liabilities	614		621
Deferred and accrued taxes	90		45
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2021 and $15 million in 2020)	484		564
Total liabilities	17,977		19,030
Contingencies (Note 12)	0		0

Shareholders’ equity:
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 134,477,096 and 134,341,724 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	1		1
Additional paid-in capital	1,657		1,655
Accumulated other comprehensive income	80		94
Retained earnings	1,570		1,691
Total shareholders’ equity	3,308		3,441
Total liabilities and shareholders’ equity	$	21,285	$	22,471


	Three Months Ended March 31,
(dollars in millions, except per share amounts)	2020		2019




Interest income	$	1,106	$	956

Interest expense	255		236

Net interest income	851		720

Provision for finance receivable losses	531		286

Net interest income after provision for finance receivable losses	320		434

Other revenues:
Insurance	117		110
Investment	9		26
Net loss on repurchase and repayment of debt	—		(21)
Net gain on sale of real estate loans	—		3
Other	15		30
Total other revenues	141		148

Other expenses:
Salaries and benefits	199		199
Other operating expenses	151		136
Insurance policy benefits and claims	68		45
Total other expenses	418		380

Income before income taxes	43		202

Income taxes	11		50

Net income	$	32	$	152

Share Data:
Weighted average number of shares outstanding:
Basic	135,909,100		136,001,996
Diluted	136,138,677		136,191,283
Earnings per share:
Basic	$	0.24	$	1.12
Diluted	$	0.24	$	1.11


		OneMain Holdings, Inc. Shareholders’ Equity																			OneMain Holdings, Inc. Shareholders’ Equity
(dollars in millions)	(dollars in millions)	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Shareholders’ Equity		(dollars in millions)	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Shareholders’ Equity

Balance, January 1, 2021												Balance, January 1, 2021	$	1	$	1,655	$	94	$	1,691	$	3,441
Share-based compensation expense, net of forfeitures												Share-based compensation expense, net of forfeitures	—		7		—		—		7
Withholding tax on share-based compensation												Withholding tax on share-based compensation	—		(5)		—		—		(5)

Other comprehensive loss												Other comprehensive loss	—		—		(14)		—		(14)

Cash dividends (a)												Cash dividends (a)	—		—		—		(534)		(534)

Net income												Net income	—		—		—		413		413
Balance, March 31, 2021												Balance, March 31, 2021	$	1	$	1,657	$	80	$	1,570	$	3,308

Balance, January 1, 2020 (pre-adoption)												Balance, January 1, 2020 (pre-adoption)	$	1	$	1,689	$	44	$	2,596	$	4,330
Net impact of adoption of ASU 2016-13 (b)												Net impact of adoption of ASU 2016-13 (b)	—		—		—		(828)		(828)
Balance, January 1, 2020 (post-adoption)												Balance, January 1, 2020 (post-adoption)	1		1,689		44		1,768		3,502
Common stock repurchased and retired												Common stock repurchased and retired	—		(45)		—		—		(45)
Share-based compensation expense, net of forfeitures												Share-based compensation expense, net of forfeitures	—		7		—		—		7
Withholding tax on share-based compensation												Withholding tax on share-based compensation	—		(6)		—		—		(6)
Other comprehensive loss												Other comprehensive loss	—		—		(50)		—		(50)
Cash dividends (a)												Cash dividends (a)	—		—		—		(388)		(388)
Net income												Net income	—		—		—		32		32
Balance, March 31, 2020												Balance, March 31, 2020	$	1	$	1,645	$	(6)	$	1,412	$	3,052

Balance, January 1, 2020 (pre-adoption)		$	1	$	1,689	$	44	$	2,596	$	4,330
Net impact of adoption of ASU 2016-13 (see Note 3)		—		—		—		(828)		(828)
Balance, January 1, 2020 (post-adoption)		1		1,689		44		1,768		3,502
Common stock repurchased and retired		—		(45)		—		—		(45)
Share-based compensation expense, net of forfeitures		—		7		—		—		7
Withholding tax on share-based compensation		—		(6)		—		—		(6)

Other comprehensive loss		—		—		(50)		—		(50)

Cash dividends *		—		—		—		(388)		(388)
Net income		—		—		—		32		32
Balance, March 31, 2020		$	1	$	1,645	$	(6)	$	1,412	$	3,052

Balance, January 1, 2019		$	1	$	1,681	$	(34)	$	2,151	$	3,799

Share-based compensation expense, net of forfeitures		—		6		—		—		6
Withholding tax on share-based compensation		—		(5)		—		—		(5)
Other comprehensive income		—		—		32		—		32
Cash dividends *		—		—		—		(34)		(34)
Net income		—		—		—		152		152
Balance, March 31, 2019		$	1	$	1,682	$	(2)	$	2,269	$	3,950


		Springleaf Finance Corporation Shareholder's Equity																			OneMain Finance Corporation Shareholder's Equity
(dollars in millions)	(dollars in millions)	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Shareholder’s Equity		(dollars in millions)	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Shareholder’s Equity

Balance, January 1, 2020 (pre-adoption)		$	5	$	1,888	$	44	$	2,388	$	4,325
Net impact of adoption of ASU-2016-13 (see Note 3)		—		—		—		(828)		(828)
Balance, January 1, 2020 (post-adoption)		5		1,888		44		1,560		3,497
Balance, January 1, 2021												Balance, January 1, 2021	$	5	$	1,899	$	94	$	1,442	$	3,440

Share-based compensation expense, net of forfeitures	Share-based compensation expense, net of forfeitures	—		7		—		—		7		Share-based compensation expense, net of forfeitures	—		7		—		—		7
Withholding tax on share-based compensation	Withholding tax on share-based compensation	—		(6)		—		—		(6)		Withholding tax on share-based compensation	—		(5)		—		—		(5)

Other comprehensive loss	Other comprehensive loss	—		—		(50)		—		(50)		Other comprehensive loss	—		—		(14)		—		(14)
Cash dividends	Cash dividends	—		—		—		(433)		(433)		Cash dividends	—		—		—		(535)		(535)

Net income												Net income	—		—		—		413		413
Balance, March 31, 2021												Balance, March 31, 2021	$	5	$	1,901	$	80	$	1,320	$	3,306

Balance, January 1, 2020 (pre-adoption)												Balance, January 1, 2020 (pre-adoption)	$	5	$	1,888	$	44	$	2,388	$	4,325
Net impact of adoption of ASU 2016-13 *												Net impact of adoption of ASU 2016-13 *	—		—		—		(828)		(828)
Balance, January 1, 2020 (post-adoption)												Balance, January 1, 2020 (post-adoption)	5		1,888		44		1,560		3,497
Share-based compensation expense, net of forfeitures												Share-based compensation expense, net of forfeitures	—		7		—		—		7
Withholding tax on share-based compensation												Withholding tax on share-based compensation	—		(6)		—		—		(6)
Other comprehensive loss												Other comprehensive loss	—		—		(50)		—		(50)

Cash dividends												Cash dividends	—		—		—		(433)		(433)
Net income	Net income	—		—		—		32		32		Net income	—		—		—		32		32
Balance, March 31, 2020	Balance, March 31, 2020	$	5	$	1,889	$	(6)	$	1,159	$	3,047	Balance, March 31, 2020	$	5	$	1,889	$	(6)	$	1,159	$	3,047

Balance, January 1, 2019		$	5	$	2,110	$	(34)	$	1,940	$	4,021

Contribution of SCHC to SFC from SFI		—		34		—		—		34
Share-based compensation expense, net of forfeitures		—		6		—		—		6
Withholding tax on shared-based compensation		—		(5)		—		—		(5)
Other comprehensive income		—		—		32		—		32
Cash dividends		—		—		—		(34)		(34)
Net income		—		—		—		156		156
Balance, March 31, 2019		$	5	$	2,145	$	(2)	$	2,062	$	4,210


2. ~~Reconciliation of Springleaf Finance Corporation Results to OneMain Holdings, Inc. Results~~


~~(dollars in millions)~~	~~December 31, 2019~~

~~Personal Loans~~
~~Carrying amount, net of allowance~~	$	40
~~Outstanding balance (a)~~	74
~~Allowance for purchased credit impaired finance receivable losses (b)~~	—

~~Real Estate Loans - Held for Sale~~
~~Carrying amount~~	$	19
~~Outstanding balance (a)~~	35


(dollars in millions)	Personal Loans		Real Estate Loans		Total









Three Months Ended March 31, 2020
TDR average net receivables	$	676	$	52	$	728
TDR finance charges recognized	12		1		13

Three Months Ended March 31, 2019
TDR average net receivables	$	477	$	64	$	541
TDR finance charges recognized	12		1		13


(dollars in millions)	(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		(dollars in millions)	Cost/ Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

March 31, 2020*
March 31, 2021*										March 31, 2021*
Fixed maturity available-for-sale securities:										Fixed maturity available-for-sale securities:
U.S. government and government sponsored entities										U.S. government and government sponsored entities	$	11	$	0	$	0	$	11
Obligations of states, municipalities, and political subdivisions										Obligations of states, municipalities, and political subdivisions	85		3		0		88
Commercial paper										Commercial paper	49		0		0		49
Non-U.S. government and government sponsored entities										Non-U.S. government and government sponsored entities	141		6		0		147
Corporate debt										Corporate debt	1,175		65		(6)		1,234
Mortgage-backed, asset-backed, and collateralized:										Mortgage-backed, asset-backed, and collateralized:
RMBS										RMBS	191		5		(1)		195
CMBS										CMBS	54		2		0		56
CDO/ABS										CDO/ABS	85		2		0		87
Total										Total	$	1,791	$	83	$	(7)	$	1,867

December 31, 2020*										December 31, 2020*
Fixed maturity available-for-sale securities:	Fixed maturity available-for-sale securities:									Fixed maturity available-for-sale securities:
U.S. government and government sponsored entities	U.S. government and government sponsored entities	$	11	$	—	$	—	$	11	U.S. government and government sponsored entities	$	12	$	0	$	0	$	12
Obligations of states, municipalities, and political subdivisions	Obligations of states, municipalities, and political subdivisions	88		1		—		89		Obligations of states, municipalities, and political subdivisions	87		5		0		92
Commercial paper	Commercial paper	76		—		—		76		Commercial paper	28		0		0		28
Non-U.S. government and government sponsored entities	Non-U.S. government and government sponsored entities	136		4		(1)		139		Non-U.S. government and government sponsored entities	137		9		0		146
Corporate debt	Corporate debt	1,061		25		(31)		1,055		Corporate debt	1,124		95		(1)		1,218
Mortgage-backed, asset-backed, and collateralized:	Mortgage-backed, asset-backed, and collateralized:									Mortgage-backed, asset-backed, and collateralized:
RMBS	RMBS	212		8		(3)		217		RMBS	208		7		0		215
CMBS	CMBS	64		1		(2)		63		CMBS	55		3		0		58
CDO/ABS	CDO/ABS	87		1		(6)		82		CDO/ABS	77		2		(1)		78
Total	Total	$	1,735	$	40	$	(43)	$	1,732	Total	$	1,728	$	121	$	(2)	$	1,847


	Less Than 12 Months						12 Months or Longer						Total
(dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

March 31, 2020

Obligations of states, municipalities, and political subdivisions	$	20	$	—	$	—	$	—	$	20	$	—
Commercial paper	45		—		—		—		45		—
Non-U.S. government and government sponsored entities	17		(1)		—		—		17		(1)
Corporate debt	434		(31)		3		—		437		(31)
Mortgage-backed, asset-backed, and collateralized:
RMBS	53		(3)		—		—		53		(3)
CMBS	31		(2)		3		—		34		(2)
CDO/ABS	57		(6)		—		—		57		(6)
Total	$	657	$	(43)	$	6	$	—	$	663	$	(43)

December 31, 2019*
U.S. government and government sponsored entities	$	—	$	—	$	3	$	—	$	3	$	—
Obligations of states, municipalities, and political subdivisions	29		(1)		4		—		33		(1)
Commercial paper	76		—		—		—		76		—
Non-U.S. government and government sponsored entities	19		—		14		—		33		—
Corporate debt	63		(1)		13		—		76		(1)
Mortgage-backed, asset-backed, and collateralized:
RMBS	45		—		—		—		45		—
CMBS	15		—		7		—		22		—
CDO/ABS	14		—		—		—		14		—
Total	$	261	$	(2)	$	41	$	—	$	302	$	(2)


		Senior Debt																Senior Debt
(dollars in millions)	(dollars in millions)	Securitizations		Revolving Conduit Facilities		Unsecured Notes (a)		Junior Subordinated Debt (a)			Total		(dollars in millions)	Securitizations		Unsecured Notes (a)		Junior Subordinated Debt (a)			Total

Interest rates (b)	Interest rates (b)	1.50%-6.94%		1.51%-3.24%		5.38%-8.25%		3.58		%			Interest rates (b)	0.91% - 6.94%		4.00% - 8.88%		1.99		%

Remainder of 2020		$	—	$	—	$	1,000	$	—		$	1,000
2021		—		—		646		—			646
Remainder of 2021													Remainder of 2021	$	0	$	0	$	0		$	0
2022	2022	—		—		1,000		—			1,000		2022	0		992		0			992
2023	2023	—		—		1,175		—			1,175		2023	0		1,175		0			1,175
2024	2024	—		—		1,300		—			1,300		2024	0		1,300		0			1,300
2025-2067		—		—		4,399		350			4,749
2025													2025	0		1,835		0			1,835
2026-2067													2026-2067	0		3,999		350			4,349
Securitizations (c)	Securitizations (c)	7,396		—		—		—			7,396		Securitizations (c)	7,424		0		0			7,424
Revolving conduit facilities (c)		—		3,500		—		—			3,500
Total principal maturities	Total principal maturities	$	7,396	$	3,500	$	9,520	$	350		$	20,766	Total principal maturities	$	7,424	$	9,301	$	350		$	17,075

Total carrying amount	Total carrying amount	$	7,364	$	3,500	$	9,407	$	172		$	20,443	Total carrying amount	$	7,394	$	9,223	$	172		$	16,789
Debt issuance costs (d)	Debt issuance costs (d)	(27)		—		(81)		—			(108)		Debt issuance costs (d)	$	(27)	$	(82)	$	0		$	(109)


		At or for the
		Three Months Ended March 31,							At or for the Three Months Ended March 31,
(dollars in millions)	(dollars in millions)	2020		2019		(dollars in millions)	2021		2020

Balance at beginning of period	Balance at beginning of period	$	117	$	117	Balance at beginning of period	$	148	$	117
Less reinsurance recoverables	Less reinsurance recoverables	(4)		(4)		Less reinsurance recoverables	(3)		(4)

Net balance at beginning of period	Net balance at beginning of period	113		113		Net balance at beginning of period	145		113

Additions for losses and loss adjustment expenses incurred to:	Additions for losses and loss adjustment expenses incurred to:					Additions for losses and loss adjustment expenses incurred to:
Current year	Current year	77		54		Current year	57		77
Prior years *	Prior years *	(9)		(7)		Prior years *	(18)		(9)
Total	Total	68		47		Total	39		68
Reductions for losses and loss adjustment expenses paid related to:	Reductions for losses and loss adjustment expenses paid related to:					Reductions for losses and loss adjustment expenses paid related to:
Current year	Current year	(17)		(17)		Current year	(18)		(17)
Prior years	Prior years	(30)		(33)		Prior years	(47)		(30)
Total	Total	(47)		(50)		Total	(65)		(47)
Foreign currency translation adjustment	Foreign currency translation adjustment	(1)		—		Foreign currency translation adjustment	0		(1)
Net balance at end of period	Net balance at end of period	133		110		Net balance at end of period	119		133
Plus reinsurance recoverables	Plus reinsurance recoverables	3		4		Plus reinsurance recoverables	3		3

Balance at end of period	Balance at end of period	$	136	$	114	Balance at end of period	$	122	$	136


							Three Months Ended March 31,
(dollars in millions, except per share data)	(dollars in millions, except per share data)	Three Months Ended March 31,						(dollars in millions, except per share data)	2021		2020
		2020		2019

Numerator (basic and diluted):	Numerator (basic and diluted):					Numerator (basic and diluted):
Net income	Net income	$	32	$	152	Net income	$	413	$	32
Denominator:	Denominator:					Denominator:
Weighted average number of shares outstanding (basic)	Weighted average number of shares outstanding (basic)	135,909,100		136,001,996		Weighted average number of shares outstanding (basic)	134,405,368		135,909,100
Effect of dilutive securities *	Effect of dilutive securities *	229,577		189,287		Effect of dilutive securities *	401,797		229,577
Weighted average number of shares outstanding (diluted)	Weighted average number of shares outstanding (diluted)	136,138,677		136,191,283		Weighted average number of shares outstanding (diluted)	134,807,165		136,138,677
Earnings per share:	Earnings per share:					Earnings per share:
Basic	Basic	$	0.24	$	1.12	Basic	$	3.07	$	0.24
Diluted	Diluted	$	0.24	$	1.11	Diluted	$	3.06	$	0.24


(dollars in millions)	(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities *		Retirement Plan Liabilities Adjustments		Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Income (Loss)		(dollars in millions)	Unrealized Gains (Losses) Available-for-Sale Securities (a)		Retirement Plan Liabilities Adjustments		Foreign Currency Translation Adjustments		Other (b)		Total Accumulated Other Comprehensive Income (Loss)

Three Months Ended March 31, 2021										Three Months Ended March 31, 2021
Balance at beginning of period										Balance at beginning of period	$	91	$	1	$	2	$	0	$	94
Other comprehensive income (loss) before reclassifications										Other comprehensive income (loss) before reclassifications	(33)		0		2		17		(14)

Balance at end of period										Balance at end of period	$	58	$	1	$	4	$	17	$	80

Three Months Ended March 31, 2020										Three Months Ended March 31, 2020
Balance at beginning of period										Balance at beginning of period	$	41	$	3	$	0	$	0	$	44
Other comprehensive loss before reclassifications										Other comprehensive loss before reclassifications	(42)		0		(8)		0		(50)

Balance at end of period										Balance at end of period	$	(1)	$	3	$	(8)	$	0	$	(6)

Three Months Ended March 31, 2020
Balance at beginning of period		$	41	$	3	$	—	$	44
Other comprehensive (loss) before reclassifications		(42)		—		(8)		(50)

Balance at end of period		$	(1)	$	3	$	(8)	$	(6)

Three Months Ended March 31, 2019
Balance at beginning of period		$	(28)	$	(3)	$	(3)	$	(34)
Other comprehensive income before reclassifications		30		—		2		32

Balance at end of period		$	2	$	(3)	$	(1)	$	(2)


At or for the Three Months Ended March 31, 2019
At or for the Three Months Ended March 31, 2020										At or for the Three Months Ended March 31, 2020
Interest income	Interest income	$	954	$	3	$	(1)	$	956	Interest income	$	1,101	$	2	$	3	$	1,106
Interest expense	Interest expense	229		2		5		236		Interest expense	249		1		5		255
Provision for finance receivable losses	Provision for finance receivable losses	276		—		10		286		Provision for finance receivable losses	530		0		1		531
Net interest income after provision for finance receivable losses	Net interest income after provision for finance receivable losses	449		1		(16)		434		Net interest income after provision for finance receivable losses	322		1		(3)		320
Other revenues *		146		8		(6)		148
Other revenues										Other revenues	136		4		1		141
Other expenses	Other expenses	363		12		5		380		Other expenses	407		6		5		418
Income (loss) before income tax expense (benefit)	Income (loss) before income tax expense (benefit)	$	232	$	(3)	$	(27)	$	202	Income (loss) before income tax expense (benefit)	$	51	$	(1)	$	(7)	$	43

Assets	Assets	$	19,197	$	95	$	2,066	$	21,358	Assets	$	22,570	$	72	$	2,051	$	24,693


		Fair Value Measurements Using											Total Fair Value			Total Carrying Value			Fair Value Measurements Using						Total Fair Value	Total Carrying Value
(dollars in millions)	(dollars in millions)	Level 1		Level 2		Level 3						Total Fair Value			(dollars in millions)			Level 1	Level 2		Level 3		Total Fair Value

March 31, 2020
March 31, 2021												March 31, 2021
Assets	Assets											Assets
Cash and cash equivalents	Cash and cash equivalents	$	4,185	$	18	$	—	$	4,203	$	4,203	Cash and cash equivalents		$	1,298		$	3	$	0	$	1,301	$	1,301
Investment securities	Investment securities	35		1,763		2		1,800		1,800		Investment securities		52			1,891		8		1,951		1,951
Net finance receivables, less allowance for finance receivable losses	Net finance receivables, less allowance for finance receivable losses	—		—		18,369		18,369		16,087		Net finance receivables, less allowance for finance receivable losses		0			0		18,447		18,447		15,502

Restricted cash and restricted cash equivalents	Restricted cash and restricted cash equivalents	575		—		—		575		575		Restricted cash and restricted cash equivalents		571			0		0		571		571
Other assets *	Other assets *	—		—		70		70		69		Other assets *		0			3		57		60		60

Liabilities	Liabilities											Liabilities
Long-term debt	Long-term debt	$	—	$	19,980	$	—	$	19,980	$	20,443	Long-term debt		$	0		$	18,082	$	0	$	18,082	$	16,789

December 31, 2019
December 31, 2020												December 31, 2020
Assets	Assets											Assets
Cash and cash equivalents	Cash and cash equivalents	$	1,159	$	68	$	—	$	1,227	$	1,227	Cash and cash equivalents		$	2,255		$	17	$	0	$	2,272	$	2,272
Investment securities	Investment securities	45		1,835		4		1,884		1,884		Investment securities		44			1,870		8		1,922		1,922
Net finance receivables, less allowance for finance receivable losses	Net finance receivables, less allowance for finance receivable losses	—		—		19,319		19,319		17,560		Net finance receivables, less allowance for finance receivable losses		0			0		18,629		18,629		15,815

Restricted cash and restricted cash equivalents	Restricted cash and restricted cash equivalents	405		—		—		405		405		Restricted cash and restricted cash equivalents		451			0		0		451		451
Other assets *	Other assets *	—		—		84		84		74		Other assets *		0			2		60		62		62

Liabilities	Liabilities											Liabilities
Long-term debt	Long-term debt	$	—	$	18,509	$	—	$	18,509	$	17,212	Long-term debt		$	0		$	19,426	$	0	$	19,426	$	17,800


		Fair Value Measurements Using													Total Carried At Fair Value				Fair Value Measurements Using						Total Carried At Fair Value
(dollars in millions)	(dollars in millions)	Level 1		Level 2		Level 3				Total Carried At Fair Value	(dollars in millions)			Level 1				Level 2			Level 3			Total Carried At Fair Value

March 31, 2020
March 31, 2021										March 31, 2021
Assets	Assets									Assets
Cash equivalents in mutual funds	Cash equivalents in mutual funds	$	3,951	$	—	$	—	$	3,951	Cash equivalents in mutual funds		$	881			$	0		$	0		$	881
Cash equivalents in securities	Cash equivalents in securities	—		18		—		18		Cash equivalents in securities		0				3			0			3
Investment securities:	Investment securities:									Investment securities:
Available-for-sale securities	Available-for-sale securities									Available-for-sale securities

U.S. government and government sponsored entities	U.S. government and government sponsored entities	—		11		—		11		U.S. government and government sponsored entities		0				11			0			11
Obligations of states, municipalities, and political subdivisions	Obligations of states, municipalities, and political subdivisions	—		89		—		89		Obligations of states, municipalities, and political subdivisions		0				88			0			88
Commercial paper	Commercial paper	—		76		—		76		Commercial paper		0				49			0			49
Non-U.S. government and government sponsored entities	Non-U.S. government and government sponsored entities	—		139		—		139		Non-U.S. government and government sponsored entities		0				147			0			147
Corporate debt	Corporate debt	4		1,051		—		1,055		Corporate debt		5				1,223			6			1,234
RMBS	RMBS	—		217		—		217		RMBS		0				195			0			195
CMBS	CMBS	—		63		—		63		CMBS		0				56			0			56
CDO/ABS	CDO/ABS	—		81		1		82		CDO/ABS		0				87			0			87

Total available-for-sale securities	Total available-for-sale securities	4		1,727		1		1,732		Total available-for-sale securities		5				1,856			6			1,867
Other securities	Other securities									Other securities

Bonds:	Bonds:									Bonds:

Non-U.S. government and government sponsored entities	Non-U.S. government and government sponsored entities	—		1		—		1		Non-U.S. government and government sponsored entities		0				1			0			1
Corporate debt	Corporate debt	—		18		—		18		Corporate debt		0				12			1			13
RMBS	RMBS	—		1		—		1		RMBS		0				1			0			1

CDO/ABS	CDO/ABS	—		13		—		13		CDO/ABS		0				21			1			22
Total bonds	Total bonds	—		33		—		33		Total bonds		0				35			2			37
Preferred stock	Preferred stock	12		3		—		15		Preferred stock		18				0			0			18
Common stock	Common stock	19		—		—		19		Common stock		29				0			0			29
Other long-term investments		—		—		1		1

Total other securities	Total other securities	31		36		1		68		Total other securities		47				35			2			84
Total investment securities	Total investment securities	35		1,763		2		1,800		Total investment securities		52				1,891			8			1,951

Restricted cash in mutual funds		573		—		—		573
Restricted cash equivalents in mutual funds										Restricted cash equivalents in mutual funds		560				0			0			560
Total	Total	$	4,559	$	1,781	$	2	$	6,342	Total		$	1,493			$	1,894		$	8		$	3,395


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.


Topic						Page


Forward-Looking Statements						4235
Overview						4437
Recent Developments and Outlook						4538
Results of Operations						4840
Segment Results						5243
Credit Quality						5545
Liquidity and Capital Resources						5949
Off-Balance Sheet Arrangements						6453
Critical Accounting Policies and Estimates						6453
Recent Accounting Pronouncements						6553
Seasonality						6553


Declaration Date	Record Date	Payment Date	Dividend Per Share			Amount Paid
						(in millions)
February 8, 2021	February 18, 2021	February 25, 2021	$	3.95	*	$	531



Total			$	3.95		$	531


(dollars in millions)	(dollars in millions)	Issue Amount (a)		Initial Collateral Balance		Current Note Amounts Outstanding (a)		Current Collateral Balance (b)		Current Weighted Average Interest Rate		Original Revolving Period	(dollars in millions)	Issue Amount (a)		Initial Collateral Balance		Current Note Amounts Outstanding (a)		Current Collateral Balance (b)		Current Weighted Average Interest Rate		Original Revolving Period

SLFT 2015-B	SLFT 2015-B	$	314	$	336	$	314	$	320	3.78	%	5 years	SLFT 2015-B	$	314	$	336	$	132	$	157	4.19	%	5 years
SLFT 2016-A		532		559		120		167		3.72	%	2 years
SLFT 2017-A	SLFT 2017-A	652		685		619		685		2.98	%	3 years	SLFT 2017-A	652		685		346		400		3.23	%	3 years
OMFIT 2015-3	OMFIT 2015-3	293		329		293		325		4.21	%	5 years	OMFIT 2015-3	293		329		182		197		4.57	%	5 years
OMFIT 2016-1		500		570		110		192		5.13	%	3 years
OMFIT 2016-3	OMFIT 2016-3	350		397		317		391		4.33	%	5 years	OMFIT 2016-3	350		397		317		414		4.33	%	5 years
OMFIT 2017-1	OMFIT 2017-1	947		988		630		663		2.70	%	2 years	OMFIT 2017-1	947		988		264		325		3.33	%	2 years
OMFIT 2018-1	OMFIT 2018-1	632		650		600		651		3.60	%	3 years	OMFIT 2018-1	632		650		585		628		3.61	%	3 years
OMFIT 2018-2	OMFIT 2018-2	368		381		350		381		3.87	%	5 years	OMFIT 2018-2	368		381		350		400		3.87	%	5 years
OMFIT 2019-1	OMFIT 2019-1	632		654		600		654		3.79	%	2 years	OMFIT 2019-1	632		654		554		598		3.82	%	2 years
OMFIT 2019-2	OMFIT 2019-2	900		947		900		947		3.30	%	7 years	OMFIT 2019-2	900		947		900		995		3.30	%	7 years
OMFIT 2019-A	OMFIT 2019-A	789		892		750		892		3.78	%	7 years	OMFIT 2019-A	789		892		750		892		3.78	%	7 years
ODART 2017-2		605		624		193		227		3.22	%	1 year
OMFIT 2020-1													OMFIT 2020-1	821		958		821		958		4.12	%	2 years
OMFIT 2020-2													OMFIT 2020-2	1,000		1,053		1,000		1,053		2.03	%	5 years
ODART 2018-1	ODART 2018-1	947		964		900		964		3.56	%	2 years	ODART 2018-1	947		964		523		558		3.66	%	2 years
ODART 2019-1	ODART 2019-1	737		750		700		750		3.79	%	5 years	ODART 2019-1	737		750		700		750		3.79	%	5 years
Total securitizations	Total securitizations	$	9,198	$	9,726	$	7,396	$	8,209				Total securitizations	$	9,382	$	9,984	$	7,424	$	8,325


(dollars in millions)	Advance Maximum Balance		Amount Drawn		Revolving Period End	Due and Payable

Rocky River Funding, LLC	$	400	$	400	April 2022	May 2023
OneMain Financial Funding IX, LLC	650		—		June 2022	July 2023
Mystic River Funding, LLC	850		500		September 2022	October 2025
Fourth Avenue Auto Funding, LLC	200		200		June 2022	July 2023
OneMain Financial Funding VIII, LLC	650		200		August 2021	September 2023
Thayer Brook Funding, LLC	250		200		July 2021	August 2022
Hubbard River Funding, LLC	250		250		September 2021	October 2023
Seine River Funding, LLC	650		250		October 2021	November 2024
New River Funding, LLC	250		—		March 2022	April 2027
Hudson River Funding, LLC	500		250		June 2022	July 2025
Columbia River Funding, LLC	500		250		September 2022	October 2025
St. Lawrence River Funding, LLC	250		250		October 2022	November 2024
OneMain Financial Funding VII, LLC	850		500		January 2023	February 2025
OneMain Financial Auto Funding I, LLC	850		250		February 2023	March 2030
Total	$	7,100	$	3,500


Item 3. Quantitative and Qualitative Disclosures About Market Risk.


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds


Period	Total Number of Shares Purchased	Average Price paid per Share		Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
January 1 - January 31	—	$	—	$	—
February 1 - February 29	—	—		—
March 1 - March 31	2,031,698	22.30		$	154,687,295
Total	2,031,698	$	22.30


Exhibit Number						Description











~~10.1~~						Letter Agreement by and between OneMain General Services Corporation and Rajive Chadha, dated June 4, 2019*









~~10.2~~1.1						~~Consulting~~Underwriting Agreement, ~~by and between~~dated February 11, 2021, among OneMain Holdings, Inc., ~~OneMain General Services Corporation,~~OMH (ML), L.P. and ~~John C. Anderson, dated~~V-OMH (ML) II, L.P., as selling stockholders, and Barclays Capital Inc. and Citigroup Global Markets Inc., as representatives of the several underwriters named therein, incorporated by reference to Exhibit 1.1 to OMH’s Current Report on Form 8-K filed on February 13, 2020*16, 2021.

31.1						Rule 13a-14(a)/15d-14(a) Certifications of the President and Chief Executive Officer of OneMain Holdings, Inc.

31.2						Rule 13a-14(a)/15d-14(a) Certifications of the Executive Vice President and Chief Financial Officer of OneMain Holdings, Inc.

31.3						Rule 13a-14(a)/15d-14(a) Certifications of the President and Chief Executive Officer of ~~Springleaf~~OneMain Finance Corporation

31.4						Rule 13a-14(a)/15d-14(a) Certifications of the Executive Vice President and Chief Financial Officer of ~~Springleaf~~OneMain Finance Corporation

32.1						Section 1350 Certifications of OneMain Holdings, Inc.

32.2						Section 1350 Certifications of ~~Springleaf~~OneMain Finance Corporation

101						Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, ~~(Loss),~~ (iv) Condensed Consolidated Statements of Shareholder’s Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements.

104						Cover Page Interactive Data File in Inline XBRL format (Included in Exhibit 101).