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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2024
☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ________ to ________
Commission File Number: 000-50058
PRA Group, Inc.
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | | | | |
Delaware | | | | 75-3078675 |
(State or other jurisdiction of incorporation or organization) | | | | (I.R.S. Employer Identification No.) |
120 Corporate Boulevard
Norfolk, Virginia 23502
(Address of principal executive offices)
(888) 772-7326
(Registrant's Telephone No., including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.01 par value per share | PRAA | NASDAQ Global Select Market |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ☐ Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ
The number of shares of the registrant's common stock outstanding as of October 31, 2024 was 39,426,698.
Table of Contents
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Item 1. | | |
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Item 2. | | |
Item 3. | | |
Item 4. | | |
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Item 1. | | |
Item 1A. | | |
Item 2. | | |
Item 3. | | |
Item 4. | | |
Item 5. | | |
Item 6. | | |
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Signatures | | |
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
PRA Group, Inc.
Consolidated Balance Sheets
September 30, 2024 and December 31, 2023
(Amounts in thousands)
| | | | | | | | | | | |
| (unaudited) | | |
| September 30, 2024 | | December 31, 2023 |
Assets | | | |
Cash and cash equivalents | $ | 141,135 | | | $ | 112,528 | |
| | | |
Investments | 61,322 | | | 72,404 | |
Finance receivables, net | 4,064,467 | | | 3,656,598 | |
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Income taxes receivable | 33,368 | | | 27,713 | |
Deferred tax assets, net | 88,260 | | | 74,694 | |
Right-of-use assets | 40,831 | | | 45,877 | |
Property and equipment, net | 31,835 | | | 36,450 | |
Goodwill | 423,011 | | | 431,564 | |
Other assets | 51,841 | | | 67,526 | |
Total assets | $ | 4,936,070 | | | $ | 4,525,354 | |
Liabilities and Equity | | | |
Liabilities: | | | |
Accounts payable | $ | 8,176 | | | $ | 6,325 | |
| | | |
Accrued expenses | 108,926 | | | 131,893 | |
Income taxes payable | 27,501 | | | 17,912 | |
Deferred tax liabilities, net | 19,881 | | | 17,051 | |
Lease liabilities | 45,222 | | | 50,300 | |
Interest-bearing deposits | 128,594 | | | 115,589 | |
Borrowings | 3,296,172 | | | 2,914,270 | |
Other liabilities | 19,806 | | | 32,638 | |
Total liabilities | 3,654,278 | | | 3,285,978 | |
| | | |
Equity: | | | |
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding | — | | | — | |
Common stock, $0.01 par value; 100,000 shares authorized, 39,426 shares issued and outstanding as of September 30, 2024; 100,000 shares authorized, 39,247 shares issued and outstanding as of December 31, 2023 | 394 | | | 392 | |
Additional paid-in capital | 15,415 | | | 7,071 | |
Retained earnings | 1,541,693 | | | 1,489,548 | |
Accumulated other comprehensive loss | (338,620) | | | (329,899) | |
Total stockholders' equity - PRA Group, Inc. | 1,218,882 | | | 1,167,112 | |
Noncontrolling interests | 62,910 | | | 72,264 | |
Total equity | 1,281,792 | | | 1,239,376 | |
Total liabilities and equity | $ | 4,936,070 | | | $ | 4,525,354 | |
The accompanying notes are an integral part of these Consolidated Financial Statements.
PRA Group, Inc.
Consolidated Income Statements
For the Three and Nine Months Ended September 30, 2024 and 2023
(Amounts in thousands, except per share amounts)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2024 | | 2023 | | 2024 | | 2023 |
Revenues: | | | | | | | | |
Portfolio income | | $ | 216,122 | | | $ | 189,960 | | | $ | 627,468 | | | $ | 562,492 | |
Changes in expected recoveries | | 60,614 | | | 22,156 | | | 185,608 | | | 6,380 | |
Total portfolio revenue | | 276,736 | | | 212,116 | | | 813,076 | | | 568,872 | |
Other revenue | | 4,741 | | | 4,314 | | | 8,216 | | | 12,264 | |
Total revenues | | 281,477 | | | 216,430 | | | 821,292 | | | 581,136 | |
| | | | | | | | |
Operating expenses: | | | | | | | | |
Compensation and employee services | | 76,106 | | | 69,517 | | | 223,944 | | | 217,708 | |
Legal collection fees | | 14,479 | | | 9,839 | | | 40,353 | | | 28,228 | |
Legal collection costs | | 28,781 | | | 20,761 | | | 90,746 | | | 66,228 | |
Agency fees | | 21,020 | | | 19,436 | | | 61,751 | | | 54,491 | |
Outside fees and services | | 20,452 | | | 18,858 | | | 63,626 | | | 62,064 | |
Communication | | 10,048 | | | 9,881 | | | 34,203 | | | 30,525 | |
Rent and occupancy | | 4,175 | | | 4,426 | | | 12,455 | | | 13,193 | |
Depreciation and amortization | | 2,469 | | | 3,273 | | | 7,826 | | | 10,344 | |
Impairment of real estate | | — | | | 5,037 | | | — | | | 5,037 | |
Other operating expenses | | 13,969 | | | 12,356 | | | 40,792 | | | 38,355 | |
| | | | | | | | |
Total operating expenses | | 191,499 | | | 173,384 | | | 575,696 | | | 526,173 | |
Income from operations | | 89,978 | | | 43,046 | | | 245,596 | | | 54,963 | |
Other income and (expense): | | | | | | | | |
| | | | | | | | |
Interest expense, net | | (61,062) | | | (49,473) | | | (168,693) | | | (130,778) | |
| | | | | | | | |
Foreign exchange gain, net | | 10 | | | 564 | | | 138 | | | 984 | |
Other | | (676) | | | (500) | | | (836) | | | (1,380) | |
Income/(loss) before income taxes | | 28,250 | | | (6,363) | | | 76,205 | | | (76,211) | |
| | | | | | | | |
Income tax expense/(benefit) | | (672) | | | 1,788 | | | 10,416 | | | (15,317) | |
Net income/(loss) | | 28,922 | | | (8,151) | | | 65,789 | | | (60,894) | |
Adjustment for net income attributable to noncontrolling interests | | 1,768 | | | 4,111 | | | 13,644 | | | 13,801 | |
Net income/(loss) attributable to PRA Group, Inc. | | $ | 27,154 | | | $ | (12,262) | | | $ | 52,145 | | | $ | (74,695) | |
| | | | | | | | |
Net income/(loss) per common share attributable to PRA Group, Inc.: | | | | | | | | |
Basic | | $ | 0.69 | | | $ | (0.31) | | | $ | 1.33 | | | $ | (1.91) | |
Diluted | | $ | 0.69 | | | $ | (0.31) | | | $ | 1.32 | | | $ | (1.91) | |
Weighted average number of shares outstanding: | | | | | | | | |
Basic | | 39,421 | | | 39,242 | | | 39,353 | | | 39,155 | |
Diluted | | 39,492 | | | 39,242 | | | 39,495 | | | 39,155 | |
The accompanying notes are an integral part of these Consolidated Financial Statements.
PRA Group, Inc.
Consolidated Statements of Comprehensive Income
For the Three and Nine Months Ended September 30, 2024 and 2023
(Amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Net income/(loss) | $ | 28,922 | | | $ | (8,151) | | | $ | 65,789 | | | $ | (60,894) | |
Other comprehensive income/(loss), net of tax | | | | | | | |
Foreign currency translation adjustments | 52,979 | | | (34,279) | | | (9,470) | | | (28,746) | |
Cash flow hedges | (8,503) | | | (7,660) | | | (6,988) | | | (6,772) | |
Debt securities available-for-sale | 246 | | | (26) | | | 357 | | | 22 | |
Other comprehensive income/(loss) | 44,722 | | | (41,965) | | | (16,101) | | | (35,496) | |
Total comprehensive income/(loss) | 73,644 | | | (50,116) | | | 49,688 | | | (96,390) | |
Less comprehensive income attributable to noncontrolling interests | 3,301 | | | 1,436 | | | 6,263 | | | 17,668 | |
Comprehensive income/(loss) attributable to PRA Group, Inc. | $ | 70,343 | | | $ | (51,552) | | | $ | 43,425 | | | $ | (114,058) | |
The accompanying notes are an integral part of these Consolidated Financial Statements.
PRA Group, Inc.
Consolidated Statements of Changes in Equity
For the Nine Months Ended September 30, 2024
(Amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | Additional Paid-In | | Retained | | Accumulated Other Comprehensive | | Noncontrolling | | Total | | |
| Shares | | Amount | | Capital | | Earnings | | Income/(Loss) | | Interests | | Equity | | |
Balance as of December 31, 2023 | 39,247 | | | $ | 392 | | | $ | 7,071 | | | $ | 1,489,548 | | | $ | (329,899) | | | $ | 72,264 | | | $ | 1,239,376 | | | |
Components of comprehensive income, net of tax: | | | | | | | | | | | | | | | |
Net income | — | | | — | | | — | | | 3,475 | | | — | | | 8,278 | | | 11,753 | | | |
Foreign currency translation adjustments | — | | | — | | | — | | | — | | | (45,973) | | | (2,218) | | | (48,191) | | | |
Cash flow hedges | — | | | — | | | — | | | — | | | 2,808 | | | — | | | 2,808 | | | |
Debt securities available-for-sale | — | | | — | | | — | | | — | | | 46 | | | — | | | 46 | | | |
Distributions to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | (11,332) | | | (11,332) | | | |
Vesting of restricted stock | 98 | | | 1 | | | (1) | | | — | | | — | | | — | | | — | | | |
| | | | | | | | | | | | | | | |
Share-based compensation expense | — | | | — | | | 3,327 | | | — | | | — | | | — | | | 3,327 | | | |
Employee stock relinquished for payment of taxes | — | | | — | | | (1,469) | | | — | | | — | | | — | | | (1,469) | | | |
Balance as of March 31, 2024 | 39,345 | | | $ | 393 | | | $ | 8,928 | | | $ | 1,493,023 | | | $ | (373,018) | | | $ | 66,992 | | | $ | 1,196,318 | | | |
Components of comprehensive income, net of tax: | | | | | | | | | | | | | | | |
Net income | — | | | — | | | — | | | 21,516 | | | — | | | 3,598 | | | 25,114 | | | |
Foreign currency translation adjustments | — | | | — | | | — | | | — | | | (7,563) | | | (6,695) | | | (14,258) | | | |
Cash flow hedges | — | | | — | | | — | | | — | | | (1,293) | | | — | | | (1,293) | | | |
Debt securities available-for-sale | — | | | — | | | — | | | — | | | 65 | | | — | | | 65 | | | |
Distributions to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | (6,080) | | | (6,080) | | | |
| | | | | | | | | | | | | | | |
Vesting of restricted stock | 72 | | | 1 | | | (1) | | | — | | | — | | | — | | | — | | | |
| | | | | | | | | | | | | | | |
Share-based compensation expense | — | | | — | | | 3,555 | | | — | | | — | | | — | | | 3,555 | | | |
Employee stock relinquished for payment of taxes | — | | | — | | | (143) | | | — | | | — | | | — | | | (143) | | | |
Balance as of June 30, 2024 | 39,417 | | | $ | 394 | | | $ | 12,339 | | | $ | 1,514,539 | | | $ | (381,809) | | | $ | 57,815 | | | $ | 1,203,278 | | | |
Components of comprehensive income, net of tax: | | | | | | | | | | | | | | | |
Net income | — | | | — | | | — | | | 27,154 | | | — | | | 1,768 | | | 28,922 | | | |
Foreign currency translation adjustments | — | | | — | | | — | | | — | | | 51,446 | | | 1,533 | | | 52,979 | | | |
Cash flow hedges | — | | | — | | | — | | | — | | | (8,503) | | | — | | | (8,503) | | | |
Debt securities available-for-sale | — | | | — | | | — | | | — | | | 246 | | | — | | | 246 | | | |
Distributions to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | (602) | | | (602) | | | |
Contributions from noncontrolling interests | — | | | — | | | — | | | — | | | — | | | 2,396 | | | 2,396 | | | |
Vesting of restricted stock | 9 | | | — | | | — | | | — | | | — | | | — | | | — | | | |
Share-based compensation expense | — | | | — | | | 3,251 | | | — | | | — | | | — | | | 3,251 | | | |
Employee stock relinquished for payment of taxes | — | | | — | | | (175) | | | — | | | — | | | — | | | (175) | | | |
Balance as of September 30, 2024 | 39,426 | | | $ | 394 | | | $ | 15,415 | | | $ | 1,541,693 | | | $ | (338,620) | | | $ | 62,910 | | | $ | 1,281,792 | | | |
The accompanying notes are an integral part of these Consolidated Financial Statements.
PRA Group, Inc.
Consolidated Statements of Changes in Equity
For the Nine Months Ended September 30, 2023
(Amounts in thousands)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | Additional Paid-In | | Retained | | Accumulated Other Comprehensive | | Noncontrolling | | Total | | |
| Shares | | Amount | | Capital | | Earnings | | Income/(Loss) | | Interests | | Equity | | |
Balance as of December 31, 2022 | 38,980 | | | $ | 390 | | | $ | 2,172 | | | $ | 1,573,025 | | | $ | (347,926) | | | $ | 59,089 | | | $ | 1,286,750 | | | |
Components of comprehensive income, net of tax: | | | | | | | | | | | | | | | |
Net income/(loss) | — | | | — | | | — | | | (58,629) | | | — | | | 4,726 | | | (53,903) | | | |
Foreign currency translation adjustments | — | | | — | | | — | | | — | | | (4,101) | | | 2,551 | | | (1,550) | | | |
Cash flow hedges | — | | | — | | | — | | | — | | | (4,831) | | | — | | | (4,831) | | | |
Debt securities available-for-sale | — | | | — | | | — | | | — | | | 128 | | | — | | | 128 | | | |
Vesting of restricted stock | 190 | | | 2 | | | (2) | | | — | | | — | | | — | | | — | | | |
Share-based compensation expense | — | | | — | | | 3,799 | | | — | | | — | | | — | | | 3,799 | | | |
Employee stock relinquished for payment of taxes | — | | | — | | | (5,684) | | | — | | | — | | | — | | | (5,684) | | | |
Balance as of March 31, 2023 | 39,170 | | | $ | 392 | | | $ | 285 | | | $ | 1,514,396 | | | $ | (356,730) | | | $ | 66,366 | | | $ | 1,224,709 | | | |
Components of comprehensive income, net of tax: | | | | | | | | | | | | | | | |
Net income/(loss) | — | | | — | | | — | | | (3,804) | | | — | | | 4,964 | | | 1,160 | | | |
Foreign currency translation adjustments | — | | | — | | | — | | | — | | | 3,091 | | | 3,992 | | | 7,083 | | | |
Cash flow hedges | — | | | — | | | — | | | — | | | 5,719 | | | — | | | 5,719 | | | |
Debt securities available-for-sale | — | | | — | | | — | | | — | | | (80) | | | — | | | (80) | | | |
Distributions to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | (1,173) | | | (1,173) | | | |
Vesting of restricted stock | 72 | | | — | | | — | | | — | | | — | | | — | | | — | | | |
Share-based compensation expense | — | | | — | | | 2,715 | | | — | | | — | | | — | | | 2,715 | | | |
Employee stock relinquished for payment of taxes | — | | | — | | | (459) | | | — | | | — | | | — | | | (459) | | | |
Balance as of June 30, 2023 | 39,242 | | | $ | 392 | | | $ | 2,541 | | | $ | 1,510,592 | | | $ | (348,000) | | | $ | 74,149 | | | $ | 1,239,674 | | | |
Components of comprehensive income, net of tax: | | | | | | | | | | | | | | | |
Net income/(loss) | — | | | — | | | — | | | (12,262) | | | — | | | 4,111 | | | (8,151) | | | |
Foreign currency translation adjustments | — | | | — | | | — | | | — | | | (31,603) | | | (2,676) | | | (34,279) | | | |
Cash flow hedges | — | | | — | | | — | | | — | | | (7,660) | | | — | | | (7,660) | | | |
Debt securities available-for-sale | — | | | — | | | — | | | — | | | (26) | | | — | | | (26) | | | |
Distributions to noncontrolling interests | — | | | — | | | — | | | — | | | — | | | (1,187) | | | (1,187) | | | |
Vesting of restricted stock | 1 | | | — | | | — | | | — | | | — | | | — | | | — | | | |
Share-based compensation expense | — | | | — | | | 1,629 | | | — | | | — | | | — | | | 1,629 | | | |
Employee stock relinquished for payment of taxes | — | | | — | | | (13) | | | — | | | — | | | — | | | (13) | | | |
Balance as of September 30, 2023 | 39,243 | | | $ | 392 | | | $ | 4,157 | | | $ | 1,498,330 | | | $ | (387,289) | | | $ | 74,397 | | | $ | 1,189,987 | | | |
The accompanying notes are an integral part of these Consolidated Financial Statements.
PRA Group, Inc.
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2024
(Amounts in thousands)
(unaudited)
| | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2024 | | 2023 |
Cash flows from operating activities: | | | |
Net income/(loss) | $ | 65,789 | | | $ | (60,894) | |
Adjustments to reconcile net income/(loss) to net cash used in operating activities: | | | |
Share-based compensation | 10,133 | | | 8,143 | |
Depreciation, amortization and impairment | 7,826 | | | 15,381 | |
| | | |
| | | |
| | | |
Amortization of debt discount and issuance costs | 8,326 | | | 7,045 | |
Changes in expected recoveries | (185,608) | | | (6,380) | |
| | | |
Deferred income taxes | (7,277) | | | (26,276) | |
Net unrealized foreign currency transaction gain | (16,593) | | | (31,783) | |
| | | |
Other | (234) | | | (567) | |
| | | |
Changes in operating assets and liabilities: | | | |
Other assets | (201) | | | 1,111 | |
| | | |
Accrued expenses, accounts payable and other liabilities | (22,092) | | | (5,793) | |
Income taxes payable, net | 2,407 | | | (18,259) | |
| | | |
| | | |
| | | |
| | | |
Net cash used in operating activities | (137,524) | | | (118,272) | |
Cash flows from investing activities: | | | |
Purchases of property and equipment, net | (2,881) | | | (2,306) | |
| | | |
Purchases of nonperforming loan portfolios | (975,164) | | | (875,373) | |
Recoveries applied to negative allowance | 784,329 | | | 695,386 | |
Purchases of investments | (48,247) | | | (60,058) | |
Proceeds from sales and maturities of investments | 58,130 | | | 62,762 | |
| | | |
| | | |
| | | |
Net cash used in investing activities | (183,833) | | | (179,589) | |
Cash flows from financing activities: | | | |
Proceeds from lines of credit | 958,636 | | | 695,651 | |
Principal payments on lines of credit | (693,622) | | | (389,658) | |
Principal payments on long-term debt | (10,000) | | | (7,500) | |
Proceeds from issuance of Senior Notes due 2030 | 400,000 | | | — | |
Proceeds from issuance of Senior Notes due 2028 | — | | | 400,000 | |
Retirement of Senior Notes due 2025 | (298,000) | | | — | |
| | | |
Retirement of Convertible Senior Notes due 2023 | — | | | (345,000) | |
Repurchases of senior notes | — | | | (3,657) | |
Payments of origination costs and fees | (5,926) | | | (5,323) | |
Tax withholdings related to share-based payments | (1,787) | | | (6,155) | |
Distributions to noncontrolling interests | (18,014) | | | (2,360) | |
Contributions from noncontrolling interests | 2,396 | | | — | |
| | | |
Net increase/(decrease) in interest-bearing deposits | 13,390 | | | (7,747) | |
| | | |
| | | |
Net cash provided by financing activities | 347,073 | | | 328,251 | |
Effect of exchange rates on cash | 3,024 | | | 3,270 | |
Net increase in cash, cash equivalents and restricted cash | 28,740 | | | 33,660 | |
Cash, cash equivalents and restricted cash, beginning of period | 113,692 | | | 84,758 | |
Cash, cash equivalents and restricted cash, end of period | $ | 142,432 | | | $ | 118,418 | |
| | | |
Supplemental disclosure of cash flow information: | | | |
Cash paid for interest | $ | 176,537 | | | $ | 111,344 | |
Cash paid for income taxes | 15,460 | | | 28,479 | |
Reconciliation to Balance Sheet accounts: | | | |
Cash and cash equivalents | $ | 141,135 | | | $ | 105,172 | |
Restricted cash included in Other assets | 1,297 | | | 13,246 | |
Cash, cash equivalents and restricted cash | $ | 142,432 | | | $ | 118,418 | |
The accompanying notes are an integral part of these Consolidated Financial Statements.
PRA Group, Inc.
Notes to Consolidated Financial Statements
1. Organization and Business:
Nature of operations: As used herein, the terms "PRA Group," the "Company," or similar terms refer to PRA Group, Inc. and its subsidiaries.
PRA Group, Inc., a Delaware corporation, is a global financial and business services company with operations in the Americas, Europe and Australia. The Company's primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company also provides fee-based services on class action claims recoveries in the United States ("U.S.").
Basis of presentation: The Consolidated Financial Statements of the Company are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The accompanying interim financial statements have been prepared in accordance with the instructions for Quarterly Reports on Form 10-Q, and therefore, do not include all information and Notes to the Consolidated Financial Statements necessary for a complete presentation of financial position, results of operations, comprehensive income/(loss) and cash flows in conformity with GAAP. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the Company's Consolidated Balance Sheets as of September 30, 2024, its Consolidated Income Statements and Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023, and its Consolidated Statements of Changes in Equity and Statements of Cash Flows for the nine months ended September 30, 2024 and 2023, have been included. The Consolidated Financial Statements include the accounts of PRA Group and other entities in which the Company has a controlling interest. All significant intercompany accounts and transactions have been eliminated.
These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"). For further discussion of the Company's significant accounting policies, refer to Note 1 to the Consolidated Financial Statements in the 2023 Form 10-K. There were no material changes to these policies during the three months ended September 30, 2024.
The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Realized results could differ from those estimates and assumptions, and the Company's Consolidated Income Statements for the three and nine months ended September 30, 2024 may not be indicative of future results.
Reclassification of prior year presentation: In the Consolidated Statements of Cash Flows, certain prior period amounts have been reclassified for consistency with the current period presentation.
2. Finance Receivables, net:
Finance receivables, net consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands):
| | | | | | | | | | | |
| September 30, 2024 | | December 31, 2023 |
Amortized cost | $ | — | | | $ | — | |
Negative allowance for expected recoveries | 4,064,467 | | | 3,656,598 | |
Balance at end of period | $ | 4,064,467 | | | $ | 3,656,598 | |
PRA Group, Inc.
Notes to Consolidated Financial Statements
Changes in the negative allowance for expected recoveries by portfolio segment for the three and nine months ended September 30, 2024 and 2023 were as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Balance at beginning of period | $ | 3,450,721 | | | $ | 369,465 | | | $ | 3,820,186 | | | | $ | 3,086,405 | | | $ | 338,143 | | | $ | 3,424,548 | |
Initial negative allowance for expected recoveries - portfolio acquisitions (1) | 335,120 | | | 14,858 | | | 349,978 | | | | 248,181 | | | 63,002 | | | 311,183 | |
Recoveries applied to negative allowance (2) | (222,960) | | | (40,429) | | | (263,389) | | | | (189,710) | | | (41,709) | | | (231,419) | |
Changes in expected recoveries (3) | 55,992 | | | 4,622 | | | 60,614 | | | | 15,894 | | | 6,262 | | | 22,156 | |
Foreign currency translation adjustment | $ | 87,496 | | | $ | 9,582 | | | $ | 97,078 | | | | $ | (58,878) | | | $ | (6,786) | | | $ | (65,664) | |
Balance at end of period | $ | 3,706,369 | | | $ | 358,098 | | | $ | 4,064,467 | | | | $ | 3,101,892 | | | $ | 358,912 | | | $ | 3,460,804 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Balance at beginning of period | $ | 3,295,214 | | | $ | 361,384 | | | $ | 3,656,598 | | | | $ | 2,936,207 | | | $ | 358,801 | | | $ | 3,295,008 | |
Initial negative allowance for expected recoveries - portfolio acquisitions (1) | 880,529 | | | 94,635 | | | 975,164 | | | | 763,776 | | | 105,391 | | | 869,167 | |
Recoveries applied to negative allowance (2) | (664,423) | | | (119,906) | | | (784,329) | | | | (574,993) | | | (120,392) | | | (695,385) | |
Changes in expected recoveries (3) | 171,303 | | | 14,305 | | | 185,608 | | | | (7,436) | | | 13,816 | | | 6,380 | |
Foreign currency translation adjustment | $ | 23,746 | | | $ | 7,680 | | | $ | 31,426 | | | | $ | (15,662) | | | $ | 1,296 | | | $ | (14,366) | |
Balance at end of period | $ | 3,706,369 | | | $ | 358,098 | | | $ | 4,064,467 | | | | $ | 3,101,892 | | | $ | 358,912 | | | $ | 3,460,804 | |
(1) Initial negative allowance for expected recoveries - portfolio acquisitions
Portfolio acquisitions for the three and nine months ended September 30, 2024 and 2023 were as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Face value | $ | 3,739,494 | | | $ | 75,859 | | | $ | 3,815,353 | | | | $ | 1,992,448 | | | $ | 382,363 | | | $ | 2,374,811 | |
Noncredit discount | (333,122) | | | (7,837) | | | (340,959) | | | | (209,131) | | | (23,837) | | | (232,968) | |
Allowance for credit losses at acquisition | (3,071,252) | | | (53,164) | | | (3,124,416) | | | | (1,535,136) | | | (295,524) | | | (1,830,660) | |
Purchase price | $ | 335,120 | | | $ | 14,858 | | | $ | 349,978 | | | | $ | 248,181 | | | $ | 63,002 | | | $ | 311,183 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Face value | $ | 7,850,273 | | | $ | 469,492 | | | $ | 8,319,765 | | | | $ | 5,717,674 | | | $ | 579,113 | | | $ | 6,296,787 | |
Noncredit discount | (881,441) | | | (44,465) | | | (925,906) | | | | (600,174) | | | (38,621) | | | (638,795) | |
Allowance for credit losses at acquisition | (6,088,303) | | | (330,392) | | | (6,418,695) | | | | (4,353,724) | | | (435,101) | | | (4,788,825) | |
Purchase price | $ | 880,529 | | | $ | 94,635 | | | $ | 975,164 | | | | $ | 763,776 | | | $ | 105,391 | | | $ | 869,167 | |
PRA Group, Inc.
Notes to Consolidated Financial Statements
The initial negative allowance recorded on portfolio acquisitions for the three and nine months ended September 30, 2024 and 2023 was as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Allowance for credit losses at acquisition | $ | (3,071,252) | | | $ | (53,164) | | | $ | (3,124,416) | | | | $ | (1,535,136) | | | $ | (295,524) | | | $ | (1,830,660) | |
Writeoffs, net | 3,071,252 | | | 53,164 | | | 3,124,416 | | | | 1,535,136 | | | 295,524 | | | 1,830,660 | |
Expected recoveries | 335,120 | | | 14,858 | | | 349,978 | | | | 248,181 | | | 63,002 | | | 311,183 | |
Initial negative allowance for expected recoveries | $ | 335,120 | | | $ | 14,858 | | | $ | 349,978 | | | | $ | 248,181 | | | $ | 63,002 | | | $ | 311,183 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Allowance for credit losses at acquisition | $ | (6,088,303) | | | $ | (330,392) | | | $ | (6,418,695) | | | | $ | (4,353,724) | | | $ | (435,101) | | | $ | (4,788,825) | |
Writeoffs, net | 6,088,303 | | | 330,392 | | | 6,418,695 | | | | 4,353,724 | | | 435,101 | | | 4,788,825 | |
Expected recoveries | 880,529 | | | 94,635 | | | 975,164 | | | | 763,776 | | | 105,391 | | | 869,167 | |
Initial negative allowance for expected recoveries | $ | 880,529 | | | $ | 94,635 | | | $ | 975,164 | | | | $ | 763,776 | | | $ | 105,391 | | | $ | 869,167 | |
(2) Recoveries applied to negative allowance
Recoveries applied to the negative allowance for the three and nine months ended September 30, 2024 and 2023 were as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Recoveries (a) | $ | 426,574 | | | $ | 52,937 | | | $ | 479,511 | | | | $ | 369,385 | | | $ | 51,994 | | | $ | 421,379 | |
Less - amounts reclassified to portfolio income | 203,614 | | | 12,508 | | | 216,122 | | | | 179,675 | | | 10,285 | | | 189,960 | |
Recoveries applied to negative allowance | $ | 222,960 | | | $ | 40,429 | | | $ | 263,389 | | | | $ | 189,710 | | | $ | 41,709 | | | $ | 231,419 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Recoveries (a) | $ | 1,256,546 | | | $ | 155,251 | | | $ | 1,411,797 | | | | $ | 1,106,799 | | | $ | 151,078 | | | $ | 1,257,877 | |
Less - amounts reclassified to portfolio income | 592,123 | | | 35,345 | | | 627,468 | | | | 531,806 | | | 30,686 | | | 562,492 | |
Recoveries applied to negative allowance | $ | 664,423 | | | $ | 119,906 | | | $ | 784,329 | | | | $ | 574,993 | | | $ | 120,392 | | | $ | 695,385 | |
(a) Recoveries include cash collections, buybacks and other cash-based adjustments.
(3) Changes in expected recoveries
The Company develops its estimates of expected recoveries by applying discounted cash flow methodologies to its estimated remaining collections and recognizes income over the estimated life of the pool at the constant effective interest rate of the pool. For additional information about these methodologies, refer to Note 1 to the Consolidated Financial Statements in the 2023 Form 10-K.
PRA Group, Inc.
Notes to Consolidated Financial Statements
Changes in expected recoveries for the three months ended September 30, 2024 and 2023 were as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Recoveries received in excess of forecast | $ | 29,133 | | | $ | 5,025 | | | $ | 34,158 | | | | $ | 11,660 | | | $ | 6,430 | | | $ | 18,090 | |
Changes in expected future recoveries | 26,859 | | | (403) | | | 26,456 | | | | 4,234 | | | (168) | | | 4,066 | |
Changes in expected recoveries | $ | 55,992 | | | $ | 4,622 | | | $ | 60,614 | | | | $ | 15,894 | | | $ | 6,262 | | | $ | 22,156 | |
Changes in expected recoveries for the three months ended September 30, 2024 were $60.6 million, which included $34.2 million in recoveries received in excess of forecast (cash collections overperformance), due primarily to collections performance in the U.S. and Europe. Changes in expected future recoveries of $26.5 million mainly reflect the Company's assessment of the 2013 to 2020 U.S. Core pools and a number of pools in Europe, which resulted in increases to the expected cash flows considering that recent performance of those pools is expected to continue.
Changes in expected recoveries for the three months ended September 30, 2023 were a net positive $22.2 million. This included $18.1 million in recoveries received in excess of forecast (cash collections overperformance) and a $4.1 million positive adjustment to changes in expected future recoveries. The $18.1 million in recoveries received in excess of forecast reflected overperformance in Europe and the Americas.
Changes in expected recoveries for the nine months ended September 30, 2024 and 2023 were as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2024 | | | 2023 |
| Core | | Insolvency | | Total | | | Core | | Insolvency | | Total |
Recoveries received in excess of forecast | $ | 109,881 | | | $ | 14,375 | | | $ | 124,256 | | | | $ | 33,483 | | | $ | 13,793 | | | $ | 47,276 | |
Changes in expected future recoveries | 61,422 | | | (70) | | | 61,352 | | | | (40,919) | | | 23 | | | (40,896) | |
Changes in expected recoveries | $ | 171,303 | | | $ | 14,305 | | | $ | 185,608 | | | | $ | (7,436) | | | $ | 13,816 | | | $ | 6,380 | |
Changes in expected recoveries for the nine months ended September 30, 2024 were $185.6 million, which included $124.3 million in recoveries received in excess of forecast, due primarily to collections performance in the U.S. and Europe. Changes in expected future recoveries of $61.4 million mainly reflect the Company's assessment of the 2013 to 2020 U.S. Core pools and a number of pools in Europe, which resulted in increases to the expected cash flows considering that recent performance of those pools is expected to continue.
Changes in expected recoveries for the nine months ended September 30, 2023 were a net positive $6.4 million. This included $47.3 million in recoveries received in excess of forecast (cash collections overperformance), primarily due to continued strong performance in Europe and South America, and a $40.9 million negative adjustment to changes in expected future recoveries. The changes in expected future recoveries reflected the Company's assessment of certain pools, which resulted in a reduction of expected cash flows due largely to collections performance in the U.S.
3. Investments:
Investments consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands):
| | | | | | | | | | | |
| September 30, 2024 | | December 31, 2023 |
| | | |
| | | |
Debt securities | | | |
| | | |
| | | |
| | | |
Available-for-sale | $ | 50,605 | | | $ | 59,470 | |
| | | |
| | | |
Equity securities | | | |
Private equity funds | 1,831 | | | 2,451 | |
Equity method investment | 8,886 | | | 10,483 | |
| | | |
Total investments | $ | 61,322 | | | $ | 72,404 | |
Debt Securities
PRA Group, Inc.
Notes to Consolidated Financial Statements
Government securities: As of September 30, 2024, the Company's available-for-sale debt securities consisted of Swedish treasury securities maturing within one year. As of September 30, 2024 and December 31, 2023, the amortized cost and fair value of these investments were as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | |
| September 30, 2024 |
| Amortized Cost | | Gross Unrealized Gains | | | | Aggregate Fair Value |
Available-for-sale | | | | | | | |
| | | | | | | |
| | | | | | | |
Government securities | $ | 50,293 | | | $ | 312 | | | | | $ | 50,605 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| December 31, 2023 |
| Amortized Cost | | Gross Unrealized Gains | | | | Aggregate Fair Value |
Available-for-sale | | | | | | | |
| | | | | | | |
Government securities | $ | 59,404 | | | $ | 66 | | | | | $ | 59,470 | |
| | | | | | | |
| | | | | | | |
Equity Method Investment
The Company has an 11.7% interest in RCB Investimentos S.A. ("RCB"), a servicing platform for nonperforming loans in Brazil, accounted for under the equity method.
4. Goodwill:
The Company performs an annual review of goodwill as of October 1 of each year, or more frequently if indicators of impairment exist, with the most recent annual review performed as of October 1, 2023. The Company performed a quarterly assessment by evaluating whether any triggering events had occurred as of September 30, 2024, which included considering current market conditions, and determined that goodwill was not more-likely-than-not impaired. Changes in goodwill for the three and nine months ended September 30, 2024 and 2023, were as follows (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | | Nine Months Ended September 30, |
| 2024 | | 2023 | | | 2024 | | 2023 |
Balance as of beginning of period | $ | 415,646 | | | $ | 414,905 | | | | $ | 431,564 | | | $ | 435,921 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Foreign currency translation | 7,365 | | | (2,392) | | | | (8,553) | | | (23,408) | |
Balance as of end of period | $ | 423,011 | | | $ | 412,513 | | | | $ | 423,011 | | | $ | 412,513 | |
PRA Group, Inc.
Notes to Consolidated Financial Statements
5. Borrowings:
Borrowings consisted of the following as of September 30, 2024 and December 31, 2023 (amounts in thousands):
| | | | | | | | | | | |
| September 30, 2024 | | December 31, 2023 |
North American revolving credit facility (1) | $ | 683,890 | | | $ | 396,303 | |
United Kingdom revolving credit facility (2) | 508,060 | | | 502,847 | |
European revolving credit facility (3) | 537,172 | | | 538,565 | |
North American term loan (4) | 432,500 | | | 442,500 | |
Credit facility borrowings | 2,161,622 | | | 1,880,215 | |
Senior Notes due 2025 (the "2025 Notes") | — | | | 298,000 | |
Senior Notes due 2028 (the "2028 Notes") | 398,000 | | | 398,000 | |
Senior Notes due 2029 (the "2029 Notes") | 350,000 | | | 350,000 | |
Senior Notes due 2030 (the "2030 Notes") | 400,000 | | | — | |
Senior notes | 1,148,000 | | | 1,046,000 | |
Credit facility borrowings and senior notes | 3,309,622 | | | 2,926,215 | |
Debt discount and issuance costs | (13,450) | | | (11,945) | |
Borrowings | $ | 3,296,172 | | | $ | 2,914,270 | |
(1)Revolving credit facility under the Company's North American Revolving Credit and Term Loan (the "North American Credit Agreement"), which included an aggregate principal amount of $1.5 billion (subject to compliance with a borrowing base and applicable debt covenants), consisting of (i) a fully-funded $432.5 million term loan (the "Term Loan"), (ii) a $1.0 billion domestic revolving credit facility, and (iii) a $75.0 million Canadian revolving credit facility, maturing on July 30, 2026. The North American Credit Agreement was amended and extended on October 28, 2024 (refer to Note 13 for additional details). (2)Revolving credit facility under the Company's United Kingdom ("UK") Credit Agreement (the "UK Credit Agreement"), which consisted of an $800.0 million revolving credit facility (subject to a borrowing base) and an accordion feature for up to $200.0 million in additional commitments, subject to certain conditions, maturing on July 30, 2026. The UK Credit Agreement was amended and extended on October 30, 2024 (refer to Note 13 for additional details). (3)Revolving credit facility under the Company's European Credit Agreement (the "European Credit Agreement"), providing revolving borrowings for an aggregate amount of approximately €730.0 million (subject to the borrowing base and applicable debt covenants) and an accordion feature for up to €500.0 million, subject to certain conditions, maturing on November 23, 2027. As of September 30, 2024, after an increase in limit during the quarter ended March 31, 2024, interest bearing deposits in AK Nordic AB cannot exceed SEK2.2 billion. The European Credit Agreement was amended on October 28, 2024 (refer to Note 13 for additional details). (4)Term Loan under the North American Credit Agreement.
During the quarter ended June 30, 2024, the Company repaid $395.9 million aggregate principal amount of outstanding borrowings under the North American revolving credit facility with net proceeds obtained from issuance of the 2030 Notes. On September 3, 2024, using funds obtained primarily from the North American revolving credit facility, the Company repaid the 2025 Notes in full by redeeming $298.0 million in aggregate principal amount of the 2025 Notes at par value.
For additional details about the North American Credit Agreement, UK Credit Agreement, European Credit Agreement and the Company's senior notes, refer to Note 7 to the Consolidated Financial Statements in the 2023 Form 10-K and description of the 2030 Notes below.
The Company was in compliance with the covenants contained in its financing arrangements as of September 30, 2024.
2030 Notes
On May 20, 2024, the Company completed the private offering of $400.0 million in aggregate principal amount of its 8.875% Senior Notes due January 31, 2030. The 2030 Notes were issued pursuant to an Indenture dated May 20, 2024 (the "2024 Indenture"), between the Company and Regions Bank, as trustee. The 2024 Indenture contains customary terms and covenants, including certain events of default after which the 2030 Notes may be due and payable immediately. The 2030 Notes are senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by all of the Company's existing and future domestic restricted subsidiaries that guarantee the North American Credit Agreement, subject to certain exceptions. Interest on the 2030 Notes is payable semi-annually, in arrears, on January 31 and July 31 of each year.
Before June 1, 2026, the Company may redeem the 2030 Notes, in whole or in part, at a price equal to 100% of the aggregate principal amount of the 2030 Notes being redeemed, plus the applicable "make whole" premium. On or before June 1, 2026, the Company may redeem up to 40% of the aggregate principal amount of the 2030 Notes at a redemption price of 108.875% plus accrued and unpaid interest with the net cash proceeds of a public offering of common stock of the Company
PRA Group, Inc.
Notes to Consolidated Financial Statements
provided, that at least 60% in aggregate principal amount of the 2030 Notes remains outstanding immediately after the occurrence of such redemption and that such redemption will occur within 90 days of the date of the closing of such public offering.
In addition, on or after June 1, 2026, the Company may redeem the 2030 Notes, in whole or in part, at a price equal to 104.438% of the aggregate principal amount of the 2030 Notes being redeemed. The applicable redemption price changes if redeemed during the 12 months beginning June 1 of each year to 102.219% for 2027 and then 100% for 2028 and thereafter.
In the event of a change of control, each holder will have the right to require the Company to repurchase all or any part of such holder's 2030 Notes at an offer price equal to 101% of the aggregate principal amount plus accrued and unpaid interest. If the Company sells assets under certain circumstances and does not use the proceeds for specified purposes, the Company will be required to make an offer to repurchase the 2030 Notes at 100% of their principal amount plus accrued and unpaid interest.
6. Derivatives:
The Company periodically enters into derivative financial instruments; typically interest rate swaps and foreign currency contracts, to reduce its exposure to fluctuations in interest rates on variable-rate debt and foreign currency exchange rates. Derivative financial instruments are recognized at fair value in the Company's Consolidated Balance Sheets. For further discussion of the Company's use of derivative instruments, refer to Note 8 to the Consolidated Financial Statements in the 2023 Form 10-K. The following table summarizes the fair value of derivative financial instruments as of September 30, 2024 and December 31, 2023 (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | September 30, 2024 | | December 31, 2023 |
| | Balance Sheet Account | | Fair Value | | Balance Sheet Account | | Fair Value |
Derivatives designated as hedging instruments: | | | | | | | | |
Interest rate contracts | | Other assets | | $ | 9,856 | | | Other assets | | $ | 21,770 | |
Interest rate contracts | | Other liabilities | | 8,956 | | | Other liabilities | | 11,627 | |
Derivatives not designated as hedging instruments: | | | | | | | | |
Foreign currency contracts | | Other assets | | 923 | | | Other assets | | 1,007 | |
Foreign currency contracts | | Other liabilities | | 345 | | | Other liabilities | | 8,776 | |
| | | | | | | | |
| | | | | | | | |
Derivatives Designated as Hedging Instruments:
Changes in the fair value of derivative contracts designated as cash flow hedging instruments are recognized in other comprehensive income ("OCI"). As of September 30, 2024 and December 31, 2023, the notional amount of interest rate contracts designated as cash flow hedging instruments was $827.9 million and $872.3 million, respectively. Derivatives designated as cash flow hedging instruments remained highly effective as of September 30, 2024, and have remaining terms from three months to four years. As of September 30, 2024, the Company estimates that $5.7 million of net derivative gains included in OCI will be reclassified into earnings within the next 12 months.
The following tables summarize the effects of derivatives designated as cash flow hedging instruments for the three and nine months ended September 30, 2024 and 2023 (amounts in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Gain/(loss) recognized in OCI, net of tax |
| | Three Months Ended September 30, | | | Nine Months Ended September 30, |
Hedging instrument | | 2024 | | 2023 | | | 2024 | | 2023 |
Interest rate contracts | | $ | (4,321) | | | $ | (2,712) | | | | $ | 5,609 | | | $ | 7,430 | |
| | | | | | | | | |
| | Gain reclassified from OCI into income |
| | Three Months Ended September 30, | |