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美國
證券交易委員會
華盛頓特區20549
表格 10-Q 

☒根據1934年《證券交易法》第13條或第15（d）條提交的季度報告
截至季度結束日期的財務報告2024年9月30日
或者
☐根據1934年證券交易法第13或15(d)節的轉型報告書
過渡期從到
001-36560
(設立或其它管轄地的州)
synchronylogorgbpositivea02.jpg
synchrony financial
(根據其章程規定的註冊人準確名稱) 
特拉華州 51-0483352
（國家或其他管轄區的
公司成立或組織）		 （IRS僱主
唯一識別號碼）
777 Long Ridge Road 
Stamford,康涅狄格州06902
，（主要行政辦公地址） (郵政編碼)
（如果自上次報告以來有變化，則填上其曾用名或舊地址）-  (203) 585-2400
根據該法第12（b）條註冊的證券：
每一類的名稱交易標誌在其上註冊的交易所的名稱
普通股，每股面值爲0.001美元。SYF請使用moomoo賬號登錄查看New York Stock Exchange
一份股票的1/40利益，代表非累計的5.625%固定利率永續優先股票A系列SYFPrA請使用moomoo賬號登錄查看New York Stock Exchange
一份股票的1/40利益，代表非累計的8.25%固定利率可重置永續優先股票B系列SYFPrB請使用moomoo賬號登錄查看New York Stock Exchange
 
請勾選以下內容。申報人是否（1）在過去12個月內（或申報人需要報告這些報告的時間較短的期間內）已提交證券交易法規定的第13或15（d）條要求提交的所有報告；以及（2）過去90天內已被要求提交此類報告。    是  ☒    否  ☐
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截至2024年10月18日，登記公司普通股每股面值$0.001的股份數量爲 389,344,383.


synchrony financial
第一部分 - 財務信息
項目1。基本報表：
第二部分-其他信息
項目6. 陳列品

3

特定定義條款
除非本報告另有規定，否則參照：
•「我們」，「我們」，「我們」的和「公司」指的是synchrony financial及其子公司；
•「Synchrony」 僅適用於synchrony financial;
•「銀行」指的是Synchrony銀行（Synchrony的子公司）;
•「董事會」或「董事會」指的是Synchrony的董事會；
•「CECL」是一種基於預期信用損失的減值模型，即當前預期信用損失模型。
•「VantageScore」是由三家主要信用報告機構開發的一種信用評分，用作評估信用用戶是否有可能履行他們的義務。
我們通過與一群各國和區域零售商、本地商家、製造商、採購團體、行業協會和醫療服務提供商建立的項目，提供一系列信貸產品，在我們的業務和本報告中，我們將其稱爲「合作伙伴」。所有項目的條款都要求我們與我們的合作伙伴進行各種性質和程度的合作努力來建立和運營這些項目。我們使用「合作伙伴」一詞來指代這些實體，並不意味着、也並不描述我們與他們之間的法律關係，也不暗示各方之間存在法律合夥或其他關係，也不創建任何法律合夥或其他關係。
除非另有說明，「貸款應收款」指的不包括待售貸款應收款。
關於我們使用的某些其他術語的描述，包括「活躍帳戶」和「購買量」，請參閱我們2023年度年報Form 10-K結束於2023年12月31日的附註「」。影響我們業績的關鍵因素，第81頁—經營結果—其他財務和統計數據在我們2023年度年報Form 10-K結束於2023年12月31日（我們的「2023年度10-K」）的附註中，對於這些術語沒有標準行業定義，其他公司可能會對其進行不同定義。

在本報告中提到的「Synchrony」及其標識和其他商標，包括CareCredit®、Quickscreen®、Dual Card™、Synchrony Car Care™和SyPI™，歸我們所有。僅出於方便起見，我們在本報告中提到我們的商標時，未使用™和®符號，但這並不意味着我們不會根據適用法律的規定，充分主張我們對商標的權利。本報告中提到的其他服務標記、商標和商業名稱歸其各自所有者所有。
在我們的網站https://investors.synchrony.com上，我們在「備案與監管-SEC備案」菜單選擇下免費提供我們的年度報告10-K表格，季度報告10-Q表格，現行報告8-K表格以及根據《1934年證券交易法》第13(a)或15(d)條修訂而提交或提供的這些報告的修訂，儘快在這些報告或修訂以電子形式提交給或提供給SEC後提供。SEC在www.sec.gov網站上維護包含我們向SEC電子提交的報告、代理和信息聲明以及其他信息的報告。
4

關於前瞻性聲明的注意事項：
本季度報告中的各種聲明可能包含《1933年證券法》第27A條修正案和《1934年證券交易法》第21E條修正案（「交易法案」）中定義的「前瞻性聲明」，該等聲明受到這些條款所創造的「安全港」的約束。前瞻性聲明可能可通過詞語「預計」、「打算」、「預期」、「計劃」、「相信」、「尋求」、「目標」、「展望」、「估計」、「將」、「應該」、「可能」、「旨在」、「專注」、「自信」、「軌跡」或類似含義的詞語加以識別，但這些詞語並非確定前瞻性聲明的唯一方式。
前瞻性聲明基於管理層當前的期望和假設，並受到難以預測的固有不確定性、風險和環境變化的影響。因此，實際結果可能與這些前瞻性聲明中所表示的結果有實質性差異。可能導致實際結果有實質性差異的因素包括全球政治、經濟、商業、競爭、市場、監管等其他因素和風險，例如：宏觀經濟狀況的影響以及我們已識別的行業趨勢是否如預期發展；保留現有合作伙伴和吸引新合作伙伴，我們營業收入集中在少數合作伙伴、合作伙伴對我們產品的推廣和支持等；網絡攻擊或其他安全事件或違規事件；我們及外包合作伙伴的計算機系統和數據中心運營中斷；合作伙伴的財務表現；消費者金融保護局（"CFPB"）有關信用卡滯納費的最終規定，包括解決方案的時間安排以及針對最終規定的訴訟的結果，以及消費者對最終規定做出的響應，如果實施，以及爲減輕最終規定的影響已經或將會實施的產品、政策和定價變化；我們信貸損失準備金的充足性以及編制財務報表時使用的假設或估計的準確性，包括與CECL會計準則有關的內容；借款成本升高和不利的金融市場狀況影響我們的融資和流動性，以及我們的信用評級降低；我們未來能增加存款的能力；損害我們的聲譽；我們的貸款應收賬款證券化能力、我們的證券化融資設施的提前攤銷、失去對證券化貸款應收賬款服務或子服務權利，以及我們證券化貸款應收賬款的支付率降低；市場利率的變化和任何淨息差擠壓的影響；我們風險管理流程和程序的有效性、對可能不準確或被誤解的模型的依賴，以及我們管理信用風險的能力；我們抵銷零售商分成安排成本增加的能力；消費金融行業的競爭；我們在美國消費信貸市場的集中度；我們成功開發和推廣新產品和服務的能力；我們實現收購、處置和戰略投資價值的能力；插卡費用的減少；欺詐活動；第三方未能提供對我們業務至關重要的各種服務；國際風險、合規和與國際業務相關的合規風險和成本；被指控侵犯他人知識產權並保護自身知識產權的能力；訴訟和監管行動；我們吸引、留住和激勵關鍵管理人員和員工的能力；稅務立法倡議或對我們稅務立場和/或解釋的挑戰，以及各州銷售稅法規和規定；政府機構對我們業務的監管、監督、檢查和執法，《多德-弗蘭克華爾街改革與消費者保護法案》（「多德-弗蘭克法案」）的影響以及其他立法和監管發展，以及CFPB對我們業務的監管所帶來的影響，包括Synchrony和銀行由於總資產達到或將達到1000億美元而需遵守的新要求和限制；資本充足規定和流動性要求的影響；限制我們支付股利和回購普通股的能力，以及限制銀行向我們支付股利的規定；與隱私、信息安全和數據保護相關的法規；使用第三方廠商和持續的第三方業務關係；以及未能遵守反洗錢和反恐怖融資法律。
基於上述原因，我們告誡您不要依賴任何前瞻性聲明，這些聲明應與本報告中其他附帶的謹慎聲明一起閱讀，以及在我們的公開文件中，包括在「業務風險因素」下 「與我們業務相關的風險因素」和頁面。「與監管有關的風險因素」 在我們的2023年10-K表格中。您不應認爲此類因素清單是所有可能導致我們當前期望或信念發生變化的風險、不確定性或潛在不準確假設的詳盡陳述。此外，任何前瞻性聲明僅適用於發表聲明的日期，並且我們不承擔更新或修訂任何前瞻性聲明的義務，包括在下文「業務趨勢和狀況」中所述，以反映聲明發表之日後的事件或情況，或反映突發事件的發生，除非法律另有要求。 「業務趨勢和狀況」 下文，以反映聲明發表之日後的事件或情況，或反映突發事件的發生，除非法律另有要求。
5

第一部分 財務信息
項目2. 管理討論與分析財務狀況和業績
關於我們的財務狀況和經營業績的討論和分析應與我們在本季度報告其他地方和2023年10-k表中包含的簡明綜合財務報表及相關附註一起閱讀。下面的討論包含基於目前預期並受不確定性和情況變化影響的前瞻性聲明。實際結果可能與這些預期有實質性不同。請參見“關於前瞻性聲明的謹慎說明.”
介紹和業務概述
____________________________________________________________________________________________
我們很興奮地期待着看看我們的用戶如何創意地使用這個功能， 我們是一家領先的消費金融服務公司，提供行業最完整、數字化的產品套件之一。我們的經驗、專業知識和規模涵蓋了廣泛的行業領域，包括數字、健康與養生、零售、電信、家居、汽車、戶外、寵物等。我們擁有一群各具實力和多元化的全國和區域型零售商、本地商家、製造商、採購集團、行業協會和醫療服務提供商，我們稱之爲「合作伙伴」。截至2024年9月30日的三個月和九個月，我們分別爲客戶融資了450億和1342億美元的成交量，並分別擁有7040萬和7110萬的平均活躍帳戶，在2024年9月30日，我們擁有1022億美元的貸款應收款項。
我們主要通過我們全資子公司銀行提供信貸產品。此外，通過銀行，我們直接向零售、親和關係和商業客戶提供了由美國聯邦存款保險公司（FDIC）保險的一系列存款產品，包括存單、個人退休帳戶（IRA）、貨幣市場帳戶、儲蓄帳戶和掃描和親和存款。我們還通過第三方證券券商接受銀行存款，這些券商向其客戶提供我們的受FDIC保險的存款產品。近年來，我們大幅擴展了在線直接銀行業務，並且我們的存款基礎繼續作爲我們信貸業務的穩定和多樣化的低成本資金來源。截至2024年9月30日，我們的存款額爲823億美元，佔我們總資金來源的84%。
我們的銷售平台
_________________________________________________________________
我們通過單一業務板塊開展運營。盈利能力和支出（包括融資成本、信貸損失和營業費用）是爲整個業務進行管理的。我們絕大部分的營業收入活動都在美國境內。我們主要通過五個銷售平台（家庭與汽車、數字、多元化與價值、健康與健康以及生活方式）來管理我們的信貸產品。這些平台按我們合作伙伴的類型組織，我們根據貸款、貸款應收賬款、活躍帳戶以及其他銷售指標的利息和費用來衡量。
6

Platformpies.jpg
家庭與汽車
我們的家居與汽車銷售平台通過廣泛的合作伙伴和商家，在提供家居和汽車商品及服務的同時，提供綜合的支付和融資方案，並提供一體化的線下和數字體驗。我們的家居與汽車銷售平台合作伙伴包括家居裝修、傢俱、牀上用品、地板、家電和電子產品行業的主要零售商，例如Ashley HomeStores LTD、Floor & Decor、Lowe's和Mattress Firm，以及汽車商品和服務，如雪佛龍和Discount Tire。此外，我們還與generac、Nationwide Marketing Group和Home Furnishings Association等製造商、購買團體和行業協會有項目協議。
數字
我們的數字銷售平台通過合作伙伴和商家提供綜合的支付和融資解決方案，以集成的數字體驗與消費者進行聯繫，這些合作伙伴和商家主要通過數字渠道與消費者互動。我們的數字銷售平台包括提供數字支付解決方案的關鍵合作伙伴，如PayPal，包括我們的Venmo計劃，在線市場如亞馬遜和eBay，以及首創數字品牌和商家，如Verizon、Qurate品牌和Fanatics。
多元化和價值
我們的多元化和價值銷售平台通過大型零售合作伙伴提供綜合的支付和融資解決方案，結合實體店和數字體驗，爲購物日常需求或重要生活時刻的消費者提供每日價值。我們的多元化和價值銷售平台由五個大型零售夥伴組成：Belk、Fleet Farm、JCPenney、Sam's Club 和 TJX公司。
健康與 wellness
我們的健康與保健銷售平台提供 通過供應商和醫療系統網絡，爲那些尋求自身、家庭及寵物健康與保健服務的人士提供全面的醫療支付和融資解決方案，包括我們的CareCredit品牌，以及沃爾格林等合作伙伴。
7

生活方式
Lifestyle通過合作伙伴和商戶提供全面的支付和融資解決方案，整合了店內和數字體驗，這些商戶在體育、戶外動力設備以及其他行業如體育用品、服裝、珠寶和音樂中提供商品。我們的Lifestyle銷售平台合作伙伴包括一系列關鍵零售商，涵蓋服裝、專業零售、戶外、音樂和奢侈品行業，如美鷹服飾、迪克體育用品、吉他中心、川崎、潘多拉、POLARIS公司、鈴木和Sweetwater。
公司，其他
其他包括與零售合作伙伴和商家達成的某些計劃協議有關的活動和餘額，這些協議不會超過其當前到期日續訂，以及先前終止的某些計劃，這些計劃不在上述討論的五個銷售平台內管理。公司其他還包括與股權投資公允價值變動以及與出售企業和投資有關的已實現收益或損失相關的金額。

8

我們的信用產品
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通過我們的銷售平台，我們提供三種主要類型的信貸產品：信用卡、商業信貸產品和消費分期貸款。我們還提供我們的支付安防-半導體計劃，這是一款債務取消產品。
下表詳細列出了每種信貸產品的類型，並顯示了截至2024年9月30日，僅根據標準條款或根據促銷融資提供的貸款總額的百分比。
促銷優惠
信用產品僅適用標準條款延期利息其他促銷總費用
信用卡59.2 %18.5 %14.3 %92.0 %
商業信貸產品1.8 — 0.1 1.9 
消費者分期貸款— 0.2 5.8 6.0 
其他0.1 — — 0.1 
總費用61.1 %18.7 %20.2 %100.0 %
信用卡公司
我們提供以下主要類型的信用卡：
•專屬品牌信用卡。 專屬品牌信用卡是與合作伙伴合作的信用卡（例如Lowe's或亞馬遜）或計劃品牌的信用卡（例如Synchrony Car Care或CareCredit），主要用於從合作伙伴或計劃網絡內購買商品和服務。此外，在某些情況下，持卡人可能被允許用於提取現金。我們的專屬品牌信用卡通常是按照標準條款或促銷融資優惠條件提供信用額度。
•雙卡和通用合作信用卡。 我們的專利雙卡是信用卡，可在購買我們合作伙伴的商品和服務時作爲專屬信用卡使用，也可在其他零售商處購物時，使用這些卡網的卡或進行取現交易時作爲通用信用卡使用。我們還提供不具備專屬信用卡功能的通用合作信用卡，以及一種Synchrony品牌的通用信用卡。雙卡和通用合作信用卡在我們的所有銷售平台上提供，信用通常僅根據標準條款展開。我們通過15多個合作伙伴提供雙卡或通用合作信用卡，其中大部分是雙卡，我們還提供CareCredit雙卡。截至2024年9月30日，消費者雙卡和合作卡總共佔我們總貸款應收賬款組合的26%。
商業信貸產品
我們爲商業客戶提供私人標籤卡和雙卡，類似於我們的消費者產品。我們還爲廣泛的商業客戶提供全額付款應收賬款產品。
分期付款貸款
我們向美國消費者（以及少量商業客戶）提供擔保分期貸款，主要用於我們的戶外市場（摩托車、ATV和園藝設備）。我們還提供無抵押分期貸款，主要在我們的家居和汽車、健康和健康銷售平台以及通過我們的其他各種分期產品，例如我們的Synchrony Pay Later解決方案，包括按月付款和分4次付款產品，用於短期貸款。分期貸款是封閉式信貸帳戶，客戶通過分期付款清償未償餘額。分期貸款通常使用固定利率評估週期性財務費用。截至2024年9月30日的分期貸款中，包括與2024年3月收購的Ally Financial Inc.的銷售點融資業務（「Ally Lending」）有關的貸款應收款項。
9

業務趨勢和狀況
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我們相信未來我們的業務和運營結果將受到各種趨勢和條件的影響。有關某些趨勢和條件的討論，請參閱2023年10-k表格中的"管理層對財務狀況和運營結果的討論和分析—業務趨勢和條件”。有關某些趨勢和條件如何影響截至2024年9月30日的三個月和九個月的討論，請參見 “—經營業績。”
CFPB就信用卡逾期費用的最終規定。
2024年3月5日，CFPb發佈了一項最終規則，修改了實施《信貸實事法》的規定，其中包括將信用卡逾期費用的安全港金額從之前的30美元（在接下來的六個計費週期內每次遲付款項調整爲41美元）降低到8美元，也取消了對該安全港金額的年度自動通脹調整。一旦生效，該最終規則將顯著降低我們貸款應收利息和費用。行業組織已經就該最終規則提起了訴訟，對此挑戰的最終結果，包括對最終規則的影響，尚不確定。最終規則最初生效日期爲2024年5月14日；然而，2024年5月10日，美國德克薩斯州北區地方法院授予了對該最終規則的禁令和停止執行，而所授予的禁令仍然有效。
鑑於上文討論的未決訴訟，導致最終規則生效日期延遲，尚不確定最終規則是否會在2024年生效。因此，2024年對我們業績產生的不利影響程度也仍然不確定。
由於最終規則即將生效，我們正在實施多項產品、政策和定價的調整，以應對我們滯納費收入大幅減少。這些變化的影響已經開始反映在截至2024年9月30日的三個月和九個月的綜合損益表中。
儘管我們仍然相信，隨着我們已確定並正在實施的戰略，將完全抵消因有效的最終規則而導致的滯納金收入下降， 這種產品、政策和定價變化可能需要一段時間才能抵消滯納金預計的減少。 此外，我們預計，一旦最終規則生效，最終規則和我們的緩解策略的綜合淨效果將導致根據我們與零售商分成安排支付給合作伙伴的款項減少。然而，最終規則的影響也受到其他因素影響，這些因素可能會增加對我們經營業績的不利影響，包括我們成功實施已確定的產品、政策和定價變化的能力，以及消費者對這些變化或最終規則本身作出的潛在反應的任何潛在變化。
關於CFPb最終滯納金規定相關風險的討論，請參閱 「—與我們業務相關的風險因素—CFPB提出的信用卡滯納金規定，如果通過，將對我們的業務和經營業績產生重大不利影響」在我們的2023年10-k表中。
貸款應收及利息收入增長。
在截至2024年9月30日的三個月內，與去年同期相比，我們的購買成交量下降了4.3%，主要是由於消費者支出減少以及我們採取的信用行動所帶來的影響，我們在我們的組合中已經看到了違約概率較高的跡象。我們預計這些相同因素現在將導致截至2024年12月31日的全年購買成交量略微下降。因此，儘管我們仍預計到2024年餘下時間的貸款應收賬款將增加，但我們預計增長速度會減緩。
所有討論的因素以及我們2023年的10-k表格中提到的，例如客戶支付行爲和CFPb最終規則對信用卡逾期費用的影響，將繼續影響我們的貸款應收款和利息收入。有關這些因素的進一步討論，請參閱“財務狀況和業務運營管理討論和分析——業務趨勢和狀況-CFPb最終規則對信用卡逾期費用"和"—貸款應收款和利息收入增長”在我們的2023年10-k表格中。

10

季節性
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我們經歷交易量和貸款應收水平的波動，這是由於季節性消費和支付模式的影響，通常會導致從8月份開始貸款應收增加，一直到12月底達到峯值，貸款應收通常會在下一年的第一季度和第二季度減少，因爲客戶會償還其餘額。
季節性對交易量和貸款應收餘額的影響通常會導致我們運營結果、逾期指標以及信貸損失準備金佔總貸款應收之比在各季度間出現波動。
除了上面討論的貸款應收賬款季節性波動之外，我們通常在每年第三季度和第四季度也經歷逾期率和逾期貸款應收賬款餘額的季節性增加，這是由於客戶支付率較低，導致上半年的淨覈銷率較高。我們的逾期率和逾期貸款應收賬款餘額通常會在隨後的第一季度和第二季度減少，因爲客戶開始還清貸款餘額並恢復爲當前狀態，從而導致下半年的淨覈銷率降低。由於在日曆年第四季度逾期的客戶與在我們每個中期報告期結束時逾期的客戶相比，前者恢復爲當前狀態的概率較高，我們預計，在中期結束時未償債務比例較高，會導致覈銷，與年底未償債務相比。與這種歷史經驗一致，我們在中期結束時通常經歷信貸損失準備金佔總貸款應收賬款的比例較高，與日曆年末相比。此外，即使信用指標有所改善，例如逾期金額下降，在中期結束時，我們可能會經歷信貸損失準備金比上一年末增加的情況，反映了相同的季節性趨勢。
然而，除了這些季節性趨勢之外，客戶支付行爲的緩和也對我們近期經歷的較高水平產生了顯著影響，這也影響了我們的主要財務指標，例如我們的淨違約率，以及各季度期間的波動。這些客戶支付行爲變化所帶來的影響已經導致，並可能繼續導致對上述季節性趨勢影響的部分或在某些情況下完全抵消。
11

運營結果
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截至2024年9月30日的三個月和九個月亮點
以下是我們截至2024年9月30日的三個月和九個月的業績亮點，與截至2023年9月30日的三個月和九個月進行比較，除非另有說明。
•截至2024年9月30日的三個月和九個月，淨收益從62800萬增加到78900萬，從18億增加到27億。2024年9月30日結束的三個月的增長主要是由於淨利息收入增加和零售商股份安排減少，部分被信貸損失準備金的增加所抵消。2024年9月30日結束的九個月的增長主要是由於與Pets Best相關的80200萬的稅後出售收益，以及與2024年9月30日結束的三個月所經歷的相同趨勢。
•截至2024年9月30日，貸款應收款較2023年9月30日增長了4.4%，達到1022億美元，主要是由於客戶還款率降低以及Ally Lending收購的完成，部分被購買成交量的降低所抵消。
•淨利息收入在截至2024年9月30日的三個月和九個月內分別增長了5.7%至46億和7.1%至134億。對於截至2024年9月30日的三個月和九個月，貸款的利息和手續費分別增長了7.2%和10.5%，主要受平均貸款應收款增長、我們產品、定價和政策變更的影響以及較低的還款率驅動，部分被更高的沖銷所抵消。對於截至2024年9月30日的三個月和九個月，利息支出分別增長了18.5%和33.8%，主要是由於基準利率上升和利息負債增加。
•零售商的分享安排在截至2024年9月30日的三個月和九個月中分別下降了6.6%，降至91400萬，以及下降了10.6%，降至25億，主要是由於淨壞賬增加。
•截至2024年9月30日，逾30天貸款違約率佔期末貸款應收賬款的比例增加了38個點子，達到了4.78%，相比於2023年9月30日。淨違約率增加了146個點子，達到了6.06%，並且在截至2024年9月30日的三個月和九個月期間分別增加了164個點子，達到了6.26%。
•截至2024年9月30日的三個月和九個月內，信用損失準備金分別增加了10900萬美元（增幅爲7.3%）和10億美元（增幅爲24.3%），主要是由於淨撥備損失增加，部分被較低的準備金建設抵消。2024年9月30日止九個月的準備金建設包含了與Ally Lending收購相關的18000萬美元。我們的允許覆蓋率（信用損失準備金佔期末貸款應收款的百分比）在2024年9月30日上升至10.79%，而2023年9月30日爲10.40%。
•其他收入在截至2024年9月30日的三個月和九個月中，分別增加了2700萬至1億1900萬和12億至14億。這三個月的增長主要受到我們產品、定價和政策變更相關費用的影響，部分被Pets Best處置的影響以及創業公司的投資收益和損失所抵消。截止2024年9月30日的九個月增長主要由於與Pets Best處置相關的11億出售收益所驅動。
•其他費用增加了$3500萬，或3.0%，以及$13000萬，或3.8%，截至2024年9月30日的三個月和九個月。2024年9月30日的三個月和九個月的增加主要是由於與Ally Lending收購相關的費用、科技投資和與滯納金規則變化相關的準備費用，部分被較低的運營虧損抵消。
•截至2024年9月30日，存款佔我們總資金來源的84%。截至2024年9月30日，總存款較2023年12月31日增長1.4%，達到823億美元。
12

•截至2024年9月30日的九個月期間，我們宣告並支付了總計5100萬美元的分紅派息，涉及我們的A系列5.625%固定利率非累積永久優先股和B系列8.250%固定利率重置非累積永久優先股。
•截至2024年9月30日的九個月內，我們回購了90000萬美元的普通股，並宣告並支付了每股0.75美元的現金分紅，總計30100萬美元。2024年4月，董事會批准了一項增量股份回購計劃，金額高達10億美元，截止至2025年6月30日，同時將季度股息維持在每股0.25美元的當前水平。截至2024年9月30日，我們剩餘的股份回購授權總額爲7億美元。更多信息，請查看「資本—分紅派息和股份回購。」
•在2024年3月，我們以現金和對Independence Pet Holdings, Inc.的股權組合的對價出售了我們全資子公司Pets Best。這次出售導致確認了11億美元的出售收益，或扣稅後80200萬美元。
•在2024年3月，我們以20億美元現金收購了Ally Lending。Ally Lending的資產和負債主要包括未償還本金餘額爲22億美元的貸款應收款。請參見第3條。 收購與處置 有關更多信息，請參見我們簡明合併基本報表。
2024 合作伙伴協議
截至2024年9月30日的九個月期間，我們繼續擴大和多元化我們的投資組合，新增或續簽了超過55個合作伙伴，同時建立了新的戰略關係，包括以下內容：
•在我們的家居與汽車銷售平台上，我們宣佈與Bel傢具和The Carpet Guys的新合作伙伴關係，並擴展了與Associated Materials、BrandsMart和Jerome's傢具倉庫的項目協議。
•在我們的數字銷售平台上，我們宣佈了與Virgin Red的新合作關係，並擴大了與國泰航空和Verizon的項目協議。
•在我們的健康與保健銷售平台上，我們通過與債券型獸醫、Lakefield獸醫集團、LaserAway和Western獸醫的新合作伙伴關係擴大了我們的網絡，並與Bosley、Innovetive、LCA Vision和SCI延長了我們的項目協議。我們還啓動了與Pets Best的CareCredit卡的整合，以便爲客戶提供直接的保險索賠報銷。
•在我們的生活方式銷售平台上，我們宣佈了與BRP和吉布森的新合作關係，並與CF Moto、Daniel's、迪克體育用品、EC Barton和Reeds擴展了我們的項目協議。
•我們與Adit實踐管理軟體和ServiceTitan建立了兩個新的戰略科技合作伙伴關係，這兩者都擴大了客戶對我們信貸產品套件的訪問。
•我們與Atlanticus Holdings Corporation建立了合作關係，提供針對私有標籤信用卡和分期貸款產品的首選二次審查融資解決方案，覆蓋我們的業務。
13

摘要收益
下表列出了我們在所示期間的運營結果。
截至9月30日的三個月截至9月30日的九個月
(單位：百萬美元)2024202320242023
利息收入$5,785 $5,354 $16,935 $15,161 
利息支出1,176 992 3,516 2,628 
淨利息收入4,609 4,362 13,419 12,533 
零售商分享安排(914)(979)(2,488)(2,783)
信用損失準備金1,597 1,488 5,172 4,161 
淨利息收入，扣除零售商分享安排和信用損失準備金2,098 1,895 5,759 5,589 
其他收入119 92 1,393 218 
其他費用1,189 1,154 3,572 3,442 
稅前收益1,028 833 3,580 2,365 
所得稅準備239 205 855 567 
淨收益$789 $628 $2,725 $1,798 
可分配給普通股東的淨收益$768 $618 $2,674 $1,767 
14

其他財務和統計數據
下表列出了所示期間的其他某些財務和統計數據。    
在及對於在及對於
截至9月30日的三個月截至9月30日的九個月
(單位：百萬美元)2024202320242023
財務狀況數據（平均）：
貸款應收款，包括待售的$102,009 $96,230 $101,484 $93,198 
總資產$119,389 $110,335 $119,429 $108,209 
存入資金$82,487 $76,353 $82,872 $74,750 
借款$15,785 $14,806 $15,924 $14,683 
總權益$15,815 $13,758 $15,318 $13,537 
選擇的績效指標：
購買成交量(1)(2)
$44,985 $47,006 $134,218 $135,839 
家庭與汽車$11,361 $12,273 $34,369 $35,989 
數字$13,352 $13,808 $39,383 $39,541 
多元化和價值$14,992 $15,445 $44,348 $44,240 
健康與 wellness$3,867 $3,990 $11,936 $11,695 
生活方式$1,411 $1,490 $4,180 $4,372 
CORP, 其他$2 $— $2 $2 
平均活躍賬戶（以千計）(2)(3)
70,424 70,308 71,052 69,842 
凈利息收益率(4)
15.04 %15.36 %14.68 %15.17 %
淨減值$1,553 $1,116 $4,759 $3,218 
淨沖銷（年化）佔平均貸款應收款的百分比，包括待售
6.06 %4.60 %6.26 %4.62 %
備抵覆蓋比率(5)
10.79 %10.40 %10.79 %10.40 %
資產回報率(6)
2.6 %2.3 %3.0 %2.2 %
股本回報率(7)
19.8 %18.1 %23.8 %17.8 %
股權對資產比率(8)
13.25 %12.47 %12.83 %12.51 %
其他費用（年化）佔平均貸款應收款的百分比，包括待售部分
4.64 %4.76 %4.70 %4.94 %
效率比率(9)
31.2 %33.2 %29.0 %34.5 %
有效所得稅率23.2 %24.6 %23.9 %24.0 %
選定期末數據：
貸款應收款$102,193 $97,873 $102,193 $97,873 
信用損失準備$11,029 $10,176 $11,029 $10,176 
逾期超過30天的貸款應收款佔期末貸款應收款的百分比(10)
4.78 %4.40 %4.78 %4.40 %
逾期超過90天的貸款應收款佔期末貸款應收款的百分比(10)
2.33 %2.06 %2.33 %2.06 %
總活躍賬戶（以千爲單位）(3)
69,965 70,137 69,965 70,137 
______________________
(1)購買成交量或淨信用銷售額代表在此期間因使用信用卡或其他信用產品賬戶發生的總費用減去退貨的金額。
(2)包括與待售貸款應收款項相關的活動和賬戶。
(3)活躍賬戶是指在本月有消費、支付或未還餘額的信用卡或分期貸款賬戶。    
(4)凈利息收益率是指年化淨利息收入除以平均總利息產生的資產值。
(5)備抵覆蓋比率是指信用損失備抵與期末貸款應收款總額的比值。
(6)資產回報率表示年化淨收益佔平均總資產的百分比。
(7)股本回報率代表年化淨收益佔平均總股本的百分比。
(8)股權與資產的比例表示平均總股權佔平均總資產的百分比。
(9)效率比率表示（i）其他費用，除以（ii）淨利息收入與其他收入之和，減去零售商分成安排。
(10)基於客戶賬戶的期末餘額推算到各自的期末日期。
15

平均資產負債表
The following tables set forth information for the periods indicated regarding average balance sheet data, which are used in the discussion of interest income, interest expense and net interest income that follows.
 20242023
Three months ended September 30 ($ in millions)Average
Balance		Interest
Income /
Expense
Average
Yield /
Rate(1)
Average
Balance		Interest
Income/
Expense
Average
Yield /
Rate(1)
Assets
Interest-earning assets:
Interest-earning cash and equivalents(2)
$17,316 $235 5.40 %$12,753 $172 5.35 %
Securities available for sale2,587 28 4.31 %3,706 31 3.32 %
Loan receivables, including held for sale(3):
Credit cards93,785 5,236 22.21 %90,587 5,003 21.91 %
Consumer installment loans6,107 238 15.50 %3,656 108 11.72 %
Commercial credit products1,992 46 9.19 %1,861 38 8.10 %
Other125 2 6.37 %126 2 6.30 %
Total loan receivables, including held for sale102,009 5,522 21.54 %96,230 5,151 21.24 %
Total interest-earning assets121,912 5,785 18.88 %112,689 5,354 18.85 %
Non-interest-earning assets:
Cash and due from banks847 964 
Allowance for credit losses(10,994)(9,847)
Other assets7,624 6,529 
Total non-interest-earning assets(2,523)(2,354)
Total assets$119,389 $110,335 
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts$82,100 $968 4.69 %$75,952 $800 4.18 %
Borrowings of consolidated securitization entities7,817 108 5.50 %6,096 86 5.60 %
Senior and subordinated unsecured notes7,968 100 4.99 %8,710 106 4.83 %
Total interest-bearing liabilities97,885 1,176 4.78 %90,758 992 4.34 %
Non-interest-bearing liabilities:
Non-interest-bearing deposit accounts387 401 
Other liabilities5,302 5,418 
Total non-interest-bearing liabilities5,689 5,819 
Total liabilities103,574 96,577 
Equity
Total equity15,815 13,758 
Total liabilities and equity$119,389 $110,335 
Interest rate spread(4)
14.10 %14.51 %
Net interest income$4,609 $4,362 
Net interest margin(5)
15.04 %15.36 %
16

 20242023
Nine months ended September 30 ($ in millions)Average
Balance		Interest
Income /
Expense
Average
Yield /
Rate(1)
Average
Balance		Interest
Income/
Expense
Average
Yield /
Rate(1)
Assets
Interest-earning assets:
Interest-earning cash and equivalents(2)
$17,685 $720 5.44 %$13,107 $490 5.00 %
Securities available for sale2,915 99 4.54 %4,138 92 2.97 %
Loan receivables, including held for sale(3):
Credit cards93,757 15,345 21.86 %87,914 14,179 21.56 %
Consumer installment loans5,644 630 14.91 %3,375 285 11.29 %
Commercial credit products1,957 134 9.15 %1,789 108 8.07 %
Other126 7 7.42 %120 7 7.80 %
Total loan receivables, including held for sale101,484 16,116 21.21 %93,198 14,579 20.91 %
Total interest-earning assets122,084 16,935 18.53 %110,443 15,161 18.35 %
Non-interest-earning assets:
Cash and due from banks892 987 
Allowance for credit losses(10,850)(9,552)
Other assets7,303 6,331 
Total non-interest-earning assets(2,655)(2,234)
Total assets$119,429 $108,209 
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts$82,481 $2,889 4.68 %$74,340 $2,074 3.73 %
Borrowings of consolidated securitization entities7,686 323 5.61 %6,062 241 5.32 %
Senior and subordinated unsecured notes8,238 304 4.93 %8,621 313 4.85 %
Total interest-bearing liabilities98,405 3,516 4.77 %89,023 2,628 3.95 %
Non-interest-bearing liabilities:
Non-interest-bearing deposit accounts391 410 
Other liabilities5,315 5,239 
Total non-interest-bearing liabilities5,706 5,649 
Total liabilities104,111 94,672 
Equity
Total equity15,318 13,537 
Total liabilities and equity$119,429 $108,209 
Interest rate spread(4)
13.76 %14.41 %
Net interest income$13,419 $12,533 
Net interest margin(5)
14.68 %15.17 %
________________________________________
(1)Average yields/rates are based on annualized total interest income/expense divided by average balances.
(2)Includes average restricted cash balances of $57 million and $151 million for the three months ended September 30, 2024 and 2023, respectively, and $76 million and $324 million for the nine months ended September 30, 2024 and 2023, respectively.
(3)Interest income on loan receivables includes fees on loans, which primarily consist of late fees on our credit products, of $652 million and $694 million for the three months ended September 30, 2024 and 2023, respectively, and $1.9 billion and $2.0 billion for the nine months ended September 30, 2024 and 2023, respectively.
(4)Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(5)Net interest margin represents annualized net interest income divided by average total interest-earning assets.
17

For a summary description of the composition of our key line items included in our Statements of Earnings, see Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2023 Form 10-K.
Interest Income
Interest income increased by $431 million, or 8.1%, and $1.8 billion, or 11.7%, for the three and nine months ended September 30, 2024, respectively, primarily driven by increases in interest and fees on loans of 7.2% and 10.5%, respectively. The increases in the three and nine months ended September 30, 2024 in interest and fees on loans were primarily driven by growth in average loan receivables, the impact of our product, pricing and policy changes and lower customer payment rates, partially offset by higher reversals.
Average interest-earning assets
Three months ended September 30 ($ in millions)2024%2023%
Loan receivables, including held for sale$102,009 83.7 %$96,230 85.4 %
Liquidity portfolio and other19,903 16.3 %16,459 14.6 %
Total average interest-earning assets$121,912 100.0 %$112,689 100.0 %
Nine months ended September 30 ($ in millions)2024%2023%
Loan receivables, including held for sale$101,484 83.1 %$93,198 84.4 %
Liquidity portfolio and other20,600 16.9 %17,245 15.6 %
Total average interest-earning assets$122,084 100.0 %$110,443 100.0 %
Average loan receivables, including held for sale, increased 6.0% and 8.9% for the three and nine months ended September 30, 2024, respectively, primarily driven by lower customer payment rates and the impact of the Ally Lending acquisition, partially offset by lower purchase volume. Purchase volume decreased by 4.3% and 1.2% for the three and nine months ended September 30, 2024, respectively, reflecting lower consumer spend as well as the impact of credit actions, partially offset by the Ally Lending acquisition. The decrease for the nine months ended September 30, 2024 was also partially offset by growth in average active accounts of 1.7%.
Yield on average interest-earning assets
The yield on average interest-earning assets increased for the three and nine months ended September 30, 2024 primarily due to increases in the yield on average loan receivables. The loan receivable yield increased 30 basis points for both the three and nine months ended September 30, 2024 to 21.54% and 21.21%, respectively.
Interest Expense
Interest expense increased by $184 million to $1.2 billion, and $888 million to $3.5 billion, for the three and nine months ended September 30, 2024, respectively, due to higher benchmark rates and higher interest-bearing liabilities. Our cost of funds increased to 4.78% and 4.77% for the three and nine months ended September 30, 2024, respectively, compared to 4.34% and 3.95% for the three and nine months ended September 30, 2023, respectively.
Average interest-bearing liabilities
Three months ended September 30 ($ in millions)2024%2023%
Interest-bearing deposit accounts$82,100 83.9 %$75,952 83.7 %
Borrowings of consolidated securitization entities7,817 8.0 %6,096 6.7 %
Senior and subordinated unsecured notes7,968 8.1 %8,710 9.6 %
Total average interest-bearing liabilities$97,885 100.0 %$90,758 100.0 %
18

Nine months ended September 30 ($ in millions)2024%2023%
Interest-bearing deposit accounts$82,481 83.8 %$74,340 83.5 %
Borrowings of consolidated securitization entities7,686 7.8 %6,062 6.8 %
Senior and subordinated unsecured notes8,238 8.4 %8,621 9.7 %
Total average interest-bearing liabilities$98,405 100.0 %$89,023 100.0 %
Net Interest Income
Net interest income increased by $247 million, or 5.7%, and $886 million, or 7.1%, for the three and nine months ended September 30, 2024, respectively, resulting from the changes in interest income and interest expense discussed above.
Retailer Share Arrangements
Retailer share arrangements decreased by $65 million, or 6.6%, and $295 million, or 10.6%, for the three and nine months ended September 30, 2024, respectively, primarily due to higher net charge-offs.
Provision for Credit Losses
Provision for credit losses increased by $109 million, or 7.3%, and $1.0 billion, or 24.3%, for the three and nine months ended September 30, 2024, respectively, primarily driven by higher net charge-offs, partially offset by lower reserve builds in the current year. The net charge-off rate for the three months ended September 30, 2024 increased by 146 basis points to 6.06%, as compared to the prior year period, and was 97 basis points above the average of the third quarters of 2017 through 2019. The reserve build in the nine months ended September 30, 2024 included $180 million related to the Ally Lending acquisition.
Other Income
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Interchange revenue$256 $267 $760 $761 
Protection product revenue 145 131 411 371 
Loyalty programs(346)(358)(1,011)(1,001)
Other64 52 1,233 87 
Total other income$119 $92 $1,393 $218 
Other income increased by $27 million to $119 million, and $1.2 billion to $1.4 billion, for the three and nine months ended September 30, 2024, respectively. The increase in other income for the three months ended September 30, 2024 was primarily driven by the impact of our product, pricing and policy change related fees across all five of our sales platforms. This impact was partially offset by lower commission fees following the Pets Best disposition in March 2024 and venture investment losses in the three months ended September 30, 2024 as compared to net investment gains recognized in the prior year period.
The increase for the nine months ended September 30, 2024 was primarily driven by the gain on sale related to the Pets Best disposition. The pre-tax gain amount of $1.1 billion is included within the Other component of Other Income in our Condensed Consolidated Statements of Earnings for the nine months ended September 30, 2024.
19

Other Expense
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Employee costs$464 $444 $1,394 $1,346 
Professional fees231 219 687 614 
Marketing and business development123 125 377 389 
Information processing203 177 596 522 
Other168 189 518 571 
Total other expense$1,189 $1,154 $3,572 $3,442 
Other expense increased by $35 million, or 3.0% and by $130 million, or 3.8%, for the three and nine months ended September 30, 2024, respectively.
The increase in the three and nine months ended September 30, 2024 were primarily driven by costs related to the Ally Lending acquisition, technology investments, and preparatory expenses related to the late fee rule change, partially offset by lower operational losses. Technology investments primarily reflect higher amortization of capitalized software expenditures.
Provision for Income Taxes
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Effective tax rate23.2 %24.6 %23.9 %24.0 %
Provision for income taxes$239 $205 $855 $567 
The effective tax rate for the three months ended September 30, 2024 decreased compared to the same period in the prior year primarily due to the resolution of certain tax matters in the current period. The effective tax rate for the nine months ended September 30, 2024 decreased slightly compared to the same period in the prior year. For both periods presented, the effective tax rate differs from the applicable U.S. federal statutory tax rate primarily due to state income taxes.

20

Platform Analysis
As discussed above under “—Our Sales Platforms,” we offer our credit products primarily through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle), which management measures based on their revenue-generating activities. The following is a discussion of certain supplemental information for the three and nine months ended September 30, 2024, for each of our five sales platforms and Corp, Other.
Home & Auto
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Purchase volume$11,361 $12,273 $34,369 $35,989 
Period-end loan receivables$32,542 $31,648 $32,542 $31,648 
Average loan receivables, including held for sale$32,613 $31,239 $32,358 $30,386 
Average active accounts (in thousands)19,157 19,223 19,136 18,894 
Interest and fees on loans$1,489 $1,367 $4,290 $3,867 
Other income$56 $28 $127 $80 
Home & Auto interest and fees on loans increased by $122 million, or 8.9%, and increased by $423 million, or 10.9%, for the three and nine months ended September 30, 2024, respectively, primarily driven by higher average loan receivables and higher benchmark rates. The increase in average loan receivables for both periods primarily reflects the completion of the Ally Lending acquisition as well as the impact of lower customer payment rates, partially offset by lower purchase volume. Purchase volume decreased 7.4% and 4.5% for the three and nine months ended September 30, 2024, as the impact of the Ally Lending acquisition was more than offset by a combination of lower consumer traffic, fewer large ticket purchases and the impact of credit actions.
Other income increased by $28 million, or 100.0%, and $47 million, or 58.8%, for the three and nine months ended September 30, 2024, respectively. The increases for the three and nine months ended September 30, 2024 were primarily due to the impact of product, pricing and policy change related fees, lower loyalty costs and higher protection product revenue.
Digital
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Purchase volume$13,352 $13,808 $39,383 $39,541 
Period-end loan receivables$27,771 $26,685 $27,771 $26,685 
Average loan receivables, including held for sale$27,704 $26,266 $27,776 $25,484 
Average active accounts (in thousands)20,787 20,768 21,033 20,641 
Interest and fees on loans$1,593 $1,530 $4,704 $4,315 
Other income$4 $(6)$10 $(7)
Digital interest and fees on loans increased by $63 million, or 4.1%, and $389 million, or 9.0%, for the three and nine months ended September 30, 2024, respectively, primarily driven by higher average loan receivables, lower payment rates and higher benchmark rates. Purchase volume decreased by 3.3% and 0.4% for the three and nine months ended September 30, 2024, primarily driven by lower consumer spend per account and the impact of credit actions. Average active accounts remained flat and increased by 1.9%, for the three and nine months ended September 30, 2024, respectively.
21

Diversified & Value
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Purchase volume$14,992 $15,445 $44,348 $44,240 
Period-end loan receivables$19,466 $18,865 $19,466 $18,865 
Average loan receivables, including held for sale$19,413 $18,565 $19,455 $18,074 
Average active accounts (in thousands)19,960 20,410 20,448 20,571 
Interest and fees on loans$1,209 $1,168 $3,588 $3,329 
Other income$(11)$(28)$(50)$(63)
Diversified & Value interest and fees on loans increased by $41 million, or 3.5%, and $259 million, or 7.8%, for the three and nine months ended September 30, 2024, respectively, primarily driven by growth in average loan receivables, lower payment rates and higher benchmark rates. Purchase volume decreased by 2.9% for the three months ended September 30, 2024 primarily driven by lower consumer spend per account and the impact of credit actions. Purchase volume remained flat for the nine months ended September 30, 2024. Average active accounts decreased by 2.2% and 0.6%, for the three and nine months ended September 30, 2024, respectively.
Health & Wellness
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Purchase volume$3,867 $3,990 $11,936 $11,695 
Period-end loan receivables$15,439 $14,019 $15,439 $14,019 
Average loan receivables, including held for sale$15,311 $13,600 $15,041 $12,927 
Average active accounts (in thousands)7,801 7,276 7,713 7,076 
Interest and fees on loans$956 $844 $2,736 $2,365 
Other income$68 $74 $182 $189 
Health & Wellness interest and fees on loans increased by $112 million, or 13.3%, and $371 million, or 15.7%, for the three and nine months ended September 30, 2024, respectively, primarily driven by higher average loan receivables. The growth in average loan receivables for both periods reflected higher purchase volume over the last 12 months and lower customer payment rates, as well as the completion of the Ally Lending acquisition. Purchase volume decreased 3.1%, and average active accounts increased 7.2% for the three months ended September 30, 2024, as lower spend in Dental, Cosmetic and Vision, combined with the impact of credit actions, was partially offset by growth in Pet and Audiology. Purchase volume increased 2.1%, and average active accounts increased 9.0% for the nine months ended September 30, 2024, reflecting growth in Pet and Audiology, partially offset by lower spend in Vision and Dental.
Other income decreased by $6 million, or 8.1%, and $7 million, or 3.7%, for the three and nine months ended September 30, 2024, respectively. The decreases for the three and nine months ended September 30, 2024 were primarily due to lower commission fees following the Pets Best disposition, partially offset by higher protection product revenue and the impact of product, pricing and policy change related fees.
22

Lifestyle
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Purchase volume$1,411 $1,490 $4,180 $4,372 
Period-end loan receivables$6,831 $6,483 $6,831 $6,483 
Average loan receivables, including held for sale$6,823 $6,383 $6,726 $6,137 
Average active accounts (in thousands)2,677 2,556 2,668 2,572 
Interest and fees on loans$270 $249 $783 $704 
Other income$9 $8 $23 $22 
Lifestyle interest and fees on loans increased by $21 million, or 8.4%, and $79 million, or 11.2%, for the three and nine months ended September 30, 2024, respectively, primarily driven by growth in average loan receivables and higher benchmark rates. The growth in average loan receivables for both periods reflected lower customer payment rates. Purchase volume decreased by 5.3% and 4.4% for the three and nine months ended September 30, 2024, respectively, reflecting lower transaction values and the impact of credit actions.
Corp, Other
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Purchase volume$2 $— $2 $2 
Period-end loan receivables$144 $173 $144 $173 
Average loan receivables, including held for sale$145 $177 $128 $190 
Average active accounts (in thousands)42 75 54 88 
Interest and fees on loans$5 $(7)$15 $(1)
Other income$(7)$16 $1,101 $(3)
Other income for the nine months ended September 30, 2024 in Corp, Other primarily included the gain on sale related to the Pets Best disposition of $1.1 billion.

23

Loan Receivables
____________________________________________________________________________________________
Loan receivables are our largest category of assets and represent our primary source of revenue. The following discussion provides supplemental information regarding our loan receivables portfolio. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies and Note 5. Loan Receivables and Allowance for Credit Losses to our condensed consolidated financial statements for additional information related to our loan receivables.
The following table sets forth the composition of our loan receivables portfolio by product type at the dates indicated.
($ in millions)At September 30, 2024
%
At December 31, 2023
%
Loan receivables
Credit cards$94,008 92.0 %$97,043 94.2 %
Consumer installment loans6,125 6.0 3,977 3.9 
Commercial credit products1,936 1.9 1,839 1.8 
Other124 0.1 129 0.1 
Total loan receivables
$102,193 100.0 %$102,988 100.0 %
Loan receivables decreased 0.8% to $102.2 billion at September 30, 2024 compared to $103.0 billion at December 31, 2023, primarily driven by the seasonality of our business and lower purchase volume, partially offset by the Ally Lending acquisition and lower customer payment rates. Loan receivables related to the Ally Lending acquisition are included within Consumer installment loans at September 30, 2024 in the table above.
Loan receivables increased 4.4% to $102.2 billion at September 30, 2024 compared to $97.9 billion at September 30, 2023 driven by lower customer payment rates and the completion of the Ally Lending acquisition, partially offset by lower purchase volume.
Our loan receivables portfolio had the following geographic concentration at September 30, 2024.
($ in millions)Loan Receivables
Outstanding		% of Total Loan
Receivables
Outstanding
State
Texas$11,273 11.0 %
California$10,513 10.3 %
Florida$9,521 9.3 %
New York$4,865 4.8 %
North Carolina$4,300 4.2 %
Delinquencies
Over-30 day loan delinquencies as a percentage of period-end loan receivables increased to 4.78% at September 30, 2024 from 4.40% at September 30, 2023, and increased from 4.74% at December 31, 2023. These increases were primarily driven by lower customer payment rates.
Net Charge-Offs
Net charge-offs consist of the unpaid principal balance of loans held for investment that we determine are uncollectible, net of recovered amounts. We exclude accrued and unpaid finance charges and fees and third-party fraud losses from charge-offs. Charged-off and recovered finance charges and fees are included in interest and fees on loans while third-party fraud losses are included in other expense. Charge-offs are recorded as a reduction to the allowance for credit losses and subsequent recoveries of previously charged-off amounts are credited to the allowance for credit losses. Costs incurred to recover charged-off loans are recorded as collection expense and included in Other expense in our Condensed Consolidated Statements of Earnings.
24

The table below sets forth the net charge-offs and ratio of annualized net charge-offs to average loan receivables, including held for sale, (“net charge-off rate”) for the periods indicated.
Three months ended September 30,
20242023
($ in millions)AmountRateAmountRate
Credit cards$1,429 6.06 %$1,040 4.56 %
Consumer installment loans89 5.80 %49 5.32 %
Commercial credit products35 6.99 %26 5.54 %
Other— — %1 3.08 %
Total net charge-offs$1,553 6.06 %$1,116 4.60 %
Nine months ended September 30,
20242023
($ in millions)AmountRateAmountRate
Credit cards$4,392 6.26 %$3,003 4.57 %
Consumer installment loans263 6.22 %127 5.03 %
Commercial credit products103 7.03 %87 6.50 %
Other1 1.06 %1 1.10 %
Total net charge-offs$4,759 6.26 %$3,218 4.62 %
Allowance for Credit Losses
The allowance for credit losses totaled $11.0 billion at September 30, 2024, compared to $10.6 billion at December 31, 2023, respectively, and $10.2 billion at September 30, 2023, and reflects our estimate of expected credit losses for the life of the loan receivables on our Condensed Consolidated Statement of Financial Position. Our allowance for credit losses as a percentage of total period end loan receivables increased to 10.79% at September 30, 2024, from 10.26% at December 31, 2023 and increased from 10.40% at September 30, 2023.
The increase in allowance for credit losses compared to December 31, 2023 and September 30, 2023 includes the addition of the Ally Lending portfolio. See Note 5. Loan Receivables and Allowance for Credit Losses to our condensed consolidated financial statements for additional information.



25

Funding, Liquidity and Capital Resources
____________________________________________________________________________________________
We maintain a strong focus on liquidity and capital. Our funding, liquidity and capital policies are designed to ensure that our business has the liquidity and capital resources to support our daily operations, our business growth, our credit ratings and our regulatory and policy requirements, in a cost effective and prudent manner through expected and unexpected market environments.
Funding Sources
Our primary funding sources include cash from operations, deposits (direct and brokered deposits), securitized financings and senior and subordinated unsecured notes.
The following table summarizes information concerning our funding sources during the periods indicated:
 20242023
Three months ended September 30 ($ in millions)Average
Balance		%Average
Rate		Average
Balance		%Average
Rate
Deposits(1)
$82,100 83.9 %4.7 %$75,952 83.7 %4.2 %
Securitized financings7,817 8.0 5.5 %6,096 6.7 5.6 %
Senior and subordinated unsecured notes7,968 8.1 5.0 %8,710 9.6 4.8 %
Total$97,885 100.0 %4.8 %$90,758 100.0 %4.3 %
______________________
(1)Excludes $387 million and $401 million average balance of non-interest-bearing deposits for the three months ended September 30, 2024 and 2023, respectively. Non-interest-bearing deposits comprise less than 10% of total deposits for the three months ended September 30, 2024 and 2023.
 20242023
Nine months ended September 30 ($ in millions)Average
Balance		%Average
Rate		Average
Balance		%Average
Rate
Deposits(1)
$82,481 83.8 %4.7 %$74,340 83.5 %3.7 %
Securitized financings7,686 7.8 5.6 %6,062 6.8 5.3 %
Senior and subordinated unsecured notes8,238 8.4 4.9 %8,621 9.7 4.9 %
Total$98,405 100.0 %4.8 %$89,023 100.0 %3.9 %
______________________
(1)Excludes $391 million and $410 million average balance of non-interest-bearing deposits for the nine months ended September 30, 2024 and 2023, respectively. Non-interest-bearing deposits comprise less than 10% of total deposits for the nine months ended September 30, 2024 and 2023.

Deposits
We obtain deposits directly from retail, affinity relationships and commercial customers (“direct deposits”) or through third-party brokerage firms that offer our deposits to their customers (“brokered deposits”). At September 30, 2024, we had $71.6 billion in direct deposits and $10.7 billion in deposits originated through brokerage firms (including network deposit sweeps procured through a program arranger that channels brokerage account deposits to us). A key part of our liquidity plan and funding strategy is to continue to utilize our direct deposit base as a source of stable and diversified low-cost funding.
Our direct deposits are primarily from retail customers and include a range of FDIC-insured deposit products, including certificates of deposit, IRAs, money market accounts, savings accounts, sweep and affinity deposits.
Brokered deposits are primarily from retail customers of large brokerage firms. We have relationships with 10 brokers that offer our deposits through their networks. Our brokered deposits consist primarily of certificates of deposit that bear interest at a fixed rate. These deposits generally are not subject to early withdrawal.
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Our ability to attract deposits is sensitive to, among other things, the interest rates we pay, and therefore, we bear funding risk if we fail to pay higher rates, or interest rate risk if we are required to pay higher rates, to retain existing deposits or attract new deposits. To mitigate these risks, our funding strategy includes a range of deposit products, and we seek to maintain access to multiple other funding sources, including securitized financings (including our undrawn committed and uncommitted capacity) and unsecured debt.
The following table summarizes certain information regarding our interest-bearing deposits by type (all of which constitute U.S. deposits) for the periods indicated:
Three months ended September 30 ($ in millions)20242023
Average
Balance		%Average
Rate		Average
Balance		%Average
Rate
Direct deposits:
Certificates of deposit
(including IRA certificates of deposit)		$40,454 49.3 %4.9 %$34,436 45.3 %4.1 %
Savings, money market, and demand accounts 30,281 36.9 4.5 %28,746 37.9 4.4 %
Brokered deposits11,365 13.8 4.6 %12,770 16.8 4.0 %
Total interest-bearing deposits$82,100 100.0 %4.7 %$75,952 100.0 %4.2 %
Nine months ended September 30 ($ in millions)20242023
Average
Balance		%Average
Rate		Average
Balance		%Average
Rate
Direct deposits:
Certificates of deposit
(including IRA certificates of deposit)		$40,614 49.3 %4.8 %$32,115 43.2 %3.5 %
Savings, money market, and demand accounts 29,467 35.7 4.6 %29,180 39.3 3.9 %
Brokered deposits12,400 15.0 4.5 %13,045 17.5 3.8 %
Total interest-bearing deposits$82,481 100.0 %4.7 %$74,340 100.0 %3.7 %
Our deposit liabilities provide funding with maturities ranging from one day to ten years. At September 30, 2024, the weighted average maturity of our interest-bearing time deposits was one year. See Note 8. Deposits to our condensed consolidated financial statements for more information on the maturities of our time deposits.
The following table summarizes deposits by contractual maturity at September 30, 2024:
($ in millions)3 Months or
Less		Over
3 Months
but within
6 Months		Over
6 Months
but within
12 Months		Over
12 Months		Total
U.S. deposits (less than FDIC insurance limit)(1)(2)
$32,972 $6,572 $17,483 $7,745 $64,772 
U.S. deposits (in excess of FDIC insurance limit)(2)
Direct deposits:
Certificates of deposit
(including IRA certificates of deposit)		1,485 2,322 5,620 1,587 11,014 
Savings, money market, and demand accounts6,498 — — — 6,498 
Total$40,955 $8,894 $23,103 $9,332 $82,284 
______________________
(1)Includes brokered certificates of deposit for which underlying individual deposit balances are assumed to be less than $250,000.
(2)The standard deposit insurance amount is $250,000 per depositor, for each account ownership category. Deposits in excess of FDIC insurance limit presented above include partially insured accounts. Our estimate of the uninsured portion of these deposit balances at September 30, 2024 was approximately $6.0 billion.
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Securitized Financings
We access the asset-backed securitization market using the Synchrony Card Issuance Trust (“SYNIT”) through which we may issue asset-backed securities through both public transactions and private transactions funded by financial institutions and commercial paper conduits. In addition, we issue asset-backed securities in private transactions through the Synchrony Credit Card Master Note Trust (“SYNCT”) and the Synchrony Sales Finance Master Trust (“SFT”).
The following table summarizes expected contractual maturities of the investors’ interests in securitized financings, excluding debt premiums, discounts and issuance costs at September 30, 2024.
($ in millions)Less Than
One Year		One Year
Through
Three
Years		Four Years
Through
Five
Years		After Five
Years		Total
Scheduled maturities of long-term borrowings—owed to securitization investors:
SYNCT$550 $1,100 $— $— $1,650 
SFT450 1,000 — — 1,450 
SYNIT(1)
1,675 3,250 — — 4,925 
Total long-term borrowings—owed to securitization investors$2,675 $5,350 $— $— $8,025 
______________________
(1)Excludes any subordinated classes of SYNIT notes that we owned at September 30, 2024.
We retain exposure to the performance of trust assets through: (i) in the case of SYNCT, SFT and SYNIT, subordinated retained interests in the loan receivables transferred to the trust in excess of the principal amount of the notes for a given series that provide credit enhancement for a particular series, as well as a pari passu seller’s interest in each trust and (ii) in the case of SYNIT, any subordinated classes of notes that we own.
All of our securitized financings include early repayment triggers, referred to as early amortization events, including events related to material breaches of representations, warranties or covenants, inability or failure of the Bank to transfer loan receivables to the trusts as required under the securitization documents, failure to make required payments or deposits pursuant to the securitization documents, and certain insolvency-related events with respect to the related securitization depositor, Synchrony (solely with respect to SYNCT) or the Bank. In addition, an early amortization event will occur with respect to a series if the excess spread as it relates to a particular series or for the trust, as applicable, falls below zero. Following an early amortization event, principal collections on the loan receivables in the applicable trust are applied to repay principal of the trust's asset-backed securities rather than being available on a revolving basis to fund the origination activities of our business. The occurrence of an early amortization event also would limit or terminate our ability to issue future series out of the trust in which the early amortization event occurred. No early amortization event has occurred with respect to any of the securitized financings in SYNCT, SFT or SYNIT.
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The following table summarizes for each of our trusts the three-month rolling average excess spread at September 30, 2024.
Note Principal Balance
($ in millions)		# of Series
Outstanding
Three-Month Rolling
Average Excess
Spread(1)
SYNCT$1,650 3 ~ 14.8 - 15.6%
SFT$1,450 5 12.5 %
SYNIT$4,925 1 17.2 %
______________________
(1)Represents the excess spread (generally calculated as interest income collected from the applicable pool of loan receivables less applicable net charge-offs, interest expense and servicing costs, divided by the aggregate principal amount of loan receivables in the applicable pool) for SFT or, in the case of SYNCT, a range of the excess spreads relating to the particular series issued within such trust or, in the case of SYNIT, the excess spread relating to the one outstanding series issued within such trust, in all cases omitting any series that have not been outstanding for at least three full monthly periods and calculated in accordance with the applicable trust or series documentation, for the three securitization monthly periods ended September 30, 2024.
Senior and Subordinated Unsecured Notes
During the nine months ended September 30, 2024, we made repayments totaling $1.85 billion of senior unsecured notes issued by Synchrony Financial.
The following table provides a summary of our outstanding fixed rate senior and subordinated unsecured notes at September 30, 2024, which includes $750 million of senior unsecured notes issued by Synchrony Financial in August 2024.
Issuance Date
Interest Rate(1)
Maturity
Principal Amount Outstanding(2)
($ in millions)
Fixed rate senior unsecured notes:
Synchrony Financial
July 20154.500%July 20251,000 
August 20163.700%August 2026500 
December 20173.950%December 20271,000 
March 20195.150%March 2029650 
October 20212.875%October 2031750 
June 20224.875%June 2025750 
Synchrony Bank
August 20225.400%August 2025900 
August 20225.625%August 2027600 
Fixed to floating rate senior unsecured notes:
Synchrony Financial
August 2024
5.935%(3)
August 2030750 
Fixed rate subordinated unsecured notes:
Synchrony Financial
February 20237.250%February 2033750 
Total fixed rate and fixed to floating rate senior and subordinated unsecured notes
$7,650 
______________________
(1)Weighted average interest rate of all senior and subordinated unsecured notes at September 30, 2024 was 4.91%.
(2)The amounts shown exclude unamortized debt discounts, premiums and issuance costs.
(3)Interest rate fixed through August 1, 2029; resets August 2, 2029 to floating rate based on compounded Secured Overnight Financing Rate ("SOFR") plus 213 basis points.
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Short-Term Borrowings
Except as described above, there were no material short-term borrowings for the periods presented.
Covenants
The indentures pursuant to which our senior and subordinated unsecured notes have been issued include various covenants. If we do not satisfy any of these covenants, the maturity of amounts outstanding thereunder may be accelerated and become payable. We were in compliance with all of these covenants at September 30, 2024.
At September 30, 2024, we were not in default under any of our credit facilities.
Credit Ratings
Our borrowing costs and capacity in certain funding markets, including securitizations and senior and subordinated debt, may be affected by the credit ratings of the Company, the Bank and the ratings of our asset-backed securities.
The table below reflects our current credit ratings and outlooks:
S&PFitch Ratings
Synchrony Financial
Senior unsecured debtBBB-BBB-
Subordinated unsecured debtBB+BB+
Preferred stockBB-B+
Outlook for Synchrony FinancialStablePositive
Synchrony Bank
Senior unsecured debtBBBBBB-
Outlook for Synchrony BankStablePositive
In addition, certain of the asset-backed securities issued by SYNIT are rated by Fitch, S&P and/or Moody’s. A credit rating is not a recommendation to buy, sell or hold securities, may be subject to revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating. Downgrades in these credit ratings could materially increase the cost of our funding from, and restrict our access to, the capital markets.
Liquidity
____________________________________________________________________________________________
We seek to ensure that we have adequate liquidity to sustain business operations, fund asset growth, satisfy debt obligations and to meet regulatory expectations under normal and stress conditions.
We maintain policies outlining the overall framework and general principles for managing liquidity risk across our business, which is the responsibility of our Asset and Liability Management Committee, a management committee under the oversight of the Risk Committee of our Board of Directors. We employ a variety of metrics to monitor and manage liquidity. We perform regular liquidity stress testing and contingency planning as part of our liquidity management process. We evaluate a range of stress scenarios including Company specific and systemic events that could impact funding sources and our ability to meet liquidity needs.
We maintain a liquidity portfolio, which at September 30, 2024 had $19.7 billion of liquid assets, primarily consisting of cash and equivalents, less cash in transit which is not considered to be liquid, compared to $16.8 billion of liquid assets at December 31, 2023. The increase in liquid assets was primarily due to deposit growth and the issuances of securitized debt and preferred stock, as well as the proceeds from the Pets Best disposition. We believe our liquidity position at September 30, 2024 remains strong as we continue to operate in a period of uncertain economic conditions and we will continue to closely monitor our liquidity as economic conditions change.
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As a general matter, investments included in our liquidity portfolio are expected to be highly liquid, giving us the ability to readily convert them to cash. The level and composition of our liquidity portfolio may fluctuate based upon the level of expected maturities of our funding sources as well as operational requirements and market conditions.
We also have access to several additional sources of liquidity beyond our liquidity portfolio. At September 30, 2024, we had an aggregate of $11.4 billion of available borrowing capacity through the Federal Reserve’s discount window. In addition, we had $2.7 billion of undrawn capacity on our securitized financings, subject to customary borrowing conditions, from private lenders under our securitization programs, of which $2.2 billion was committed and $450 million was uncommitted, as well as $500 million of undrawn committed capacity under our unsecured revolving credit facility with private lenders. We also have other unencumbered assets in the Bank available to be used to generate additional liquidity through secured borrowings or asset sales or to be pledged to the Federal Reserve Board for credit at the discount window.
We rely significantly on dividends and other distributions and payments from the Bank for liquidity; however, bank regulations, contractual restrictions and other factors limit the amount of dividends and other distributions and payments that the Bank may pay to us. For a discussion of regulatory restrictions on the Bank’s ability to pay dividends, see “Regulation—Risk Factors Relating to Regulation—We are subject to restrictions that limit our ability to pay dividends and repurchase our common stock; the Bank is subject to restrictions that limit its ability to pay dividends to us, which could limit our ability to pay dividends, repurchase our common stock or make payments on our indebtedness” and “Regulation—Regulation Relating to Our Business—Savings Association Regulation—Dividends and Stock Repurchases” in our 2023 Form 10-K.
Capital
____________________________________________________________________________________________
Our primary sources of capital have been earnings generated by our business and existing equity capital. We seek to manage capital to a level and composition sufficient to support the risks of our business, meet regulatory requirements, adhere to rating agency targets and support future business growth. The level, composition and utilization of capital are influenced by changes in the economic environment, strategic initiatives and legislative and regulatory developments. Within these constraints, we are focused on deploying capital in a manner that will provide attractive returns to our stockholders.
Beginning in 2024, we are now subject to the Federal Reserve Board's formal capital plan submission requirements and have submitted our capital plan to the Federal Reserve Board.
Dividend and Share Repurchases
Common Stock Cash Dividends DeclaredMonth of PaymentAmount per Common ShareAmount
($ in millions, except per share data)
Three months ended March 31, 2024
February 2024
$0.25 $102 
Three months ended June 30, 2024
May 2024
0.25 100 
Three months ended September 30, 2024
August 2024
0.25 99 
Total dividends declared$0.75 $301 

Series A Preferred Stock Cash Dividends Declared
Month of PaymentAmount per Preferred ShareAmount
($ in millions, except per share data)
Three months ended March 31, 2024
February 2024
$14.06 $11 
Three months ended June 30, 2024
May 2024
14.06 10 
Three months ended September 30, 2024
August 2024
14.06 11 
Total Series A dividends declared
$42.18 $32 
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Series B Preferred Stock Cash Dividends Declared
Month of PaymentAmount per Preferred ShareAmount
($ in millions, except per share data)
Three months ended June 30, 2024
May 2024
$18.79 $9 
Three months ended September 30, 2024
August 2024
20.63 10 
Total Series B dividends declared
$39.42 $19 
In February 2024, we issued depositary shares representing $500 million of Series B 8.250% fixed rate reset non-cumulative perpetual preferred stock, with dividends payable quarterly beginning in May 2024. The declaration and payment of future dividends to holders of our common and preferred stock will be at the discretion of the Board and will depend on many factors. For a discussion of regulatory and other restrictions on our ability to pay dividends and repurchase stock, see “Regulation—Risk Factors Relating to Regulation—We are subject to restrictions that limit our ability to pay dividends and repurchase our common stock; the Bank is subject to restrictions that limit its ability to pay dividends to us, which could limit our ability to pay dividends, repurchase our common stock or make payments on our indebtedness” in our 2023 Form 10-K.
Common Shares Repurchased Under Publicly Announced ProgramsTotal Number of Shares
Purchased		Dollar Value of Shares
Purchased
($ and shares in millions)
Three months ended March 31, 2024
7.5 $300 
Three months ended June 30, 2024
6.9 300 
Three months ended September 30, 2024
6.6 300 
Total 21.0 $900 
During the nine months ended September 30, 2024, we repurchased $900 million of common stock as part of our 2023 share repurchase program. In April 2024, the Board of Directors approved an incremental share repurchase program of up to $1.0 billion through June 30, 2025 (the "2024 plan"). At September 30, 2024, $700 million of the authorization capacity under the 2024 plan remained outstanding. Repurchases under this program are subject to market conditions and other factors, including legal and regulatory restrictions and required approvals, if any.
Regulatory Capital Requirements - Synchrony Financial
As a savings and loan holding company, we are required to maintain minimum capital ratios, under the applicable U.S. Basel III capital rules. For more information, see “Regulation—Savings and Loan Holding Company Regulation” in our 2023 Form 10-K.
For Synchrony Financial to be a well-capitalized savings and loan holding company, Synchrony Bank must be well-capitalized and Synchrony Financial must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve Board to meet and maintain a specific capital level for any capital measure. At September 30, 2024, Synchrony Financial met all the requirements to be deemed well-capitalized.
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The following table sets forth the composition of our capital ratios for the Company calculated under the Basel III Standardized Approach rules at September 30, 2024 and December 31, 2023, respectively.
Basel III
 At September 30, 2024At December 31, 2023
($ in millions)Amount
Ratio(1)
Amount
Ratio(1)
Total risk-based capital$16,864 16.4 %$15,464 14.9 %
Tier 1 risk-based capital$14,723 14.3 %$13,334 12.9 %
Tier 1 leverage$14,723 12.5 %$13,334 11.7 %
Common equity Tier 1 capital$13,501 13.1 %$12,600 12.2 %
Risk-weighted assets$103,103 $103,460 
______________________
(1)Tier 1 leverage ratio represents total Tier 1 capital as a percentage of total average assets, after certain adjustments. All other ratios presented above represent the applicable capital measure as a percentage of risk-weighted assets.
The Company elected to adopt the option provided by the interim final rule issued by joint federal bank regulatory agencies, which largely delayed the effects of CECL on our regulatory capital. Beginning in the first quarter of 2022, the effects are being phased-in over a three-year transitional period through 2024, collectively the “CECL regulatory capital transition adjustment”. The effects of CECL on our regulatory capital will be fully phased-in beginning in the first quarter of 2025. For more information, see “Capital—Regulatory Capital Requirements - Synchrony Financial” in our 2023 Form 10-K.
Capital amounts and ratios in the above table all reflect the applicable CECL regulatory capital transition adjustment for each period. The increase in our common equity Tier 1 capital ratio compared to December 31, 2023 was primarily due to the retention of net earnings during the nine months ended September 30, 2024 and the net impact of the Pets Best disposition and Ally Lending acquisition, partially offset by the third year phase-in of the impact of CECL on our regulatory capital.
Regulatory Capital Requirements - Synchrony Bank
At September 30, 2024 and December 31, 2023, the Bank met all applicable requirements to be deemed well-capitalized pursuant to OCC regulations and for purposes of the Federal Deposit Insurance Act. The following table sets forth the composition of the Bank’s capital ratios calculated under the Basel III Standardized Approach rules at September 30, 2024 and December 31, 2023, and also reflects the applicable CECL regulatory capital transition adjustment for each period.
 At September 30, 2024At December 31, 2023Minimum to be Well-Capitalized under Prompt Corrective Action Provisions
($ in millions)AmountRatioAmountRatioRatio
Total risk-based capital$15,583 15.9 %$14,943 15.3 %10.0%
Tier 1 risk-based capital$13,499 13.8 %$12,880 13.2 %8.0%
Tier 1 leverage$13,499 12.1 %$12,880 12.0 %5.0%
Common equity Tier 1 capital$13,499 13.8 %$12,880 13.2 %6.5%
Failure to meet minimum capital requirements can result in the initiation of certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could limit our business activities and have a material adverse effect on our business, results of operations and financial condition. See “Regulation—Risk Factors Relating to Regulation—Failure by Synchrony and the Bank to meet applicable capital adequacy and liquidity requirements could have a material adverse effect on us” in our 2023 Form 10-K.
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Off-Balance Sheet Arrangements and Unfunded Lending Commitments
____________________________________________________________________________________________
We do not have any material off-balance sheet arrangements, including guarantees of third-party obligations. Guarantees are contracts or indemnification agreements that contingently require us to make a guaranteed payment or perform an obligation to a third-party based on certain trigger events. At September 30, 2024, we had not recorded any contingent liabilities in our Condensed Consolidated Statement of Financial Position related to any guarantees. See Note 6 - Variable Interest Entities to our condensed consolidated financial statements for more information on our investment commitments for unconsolidated variable interest entities (“VIE's”).
We extend credit, primarily arising from agreements with customers for unused lines of credit on our credit cards, in the ordinary course of business. Each unused credit card line is unconditionally cancellable by us. See Note 5 - Loan Receivables and Allowance for Credit Losses to our condensed consolidated financial statements for more information on our unfunded lending commitments.
Critical Accounting Estimates
____________________________________________________________________________________________
In preparing our condensed consolidated financial statements, we have identified certain accounting estimates and assumptions that we consider to be the most critical to an understanding of our financial statements because they involve significant judgments and uncertainties. The critical accounting estimates we have identified relate to allowance for credit losses and fair value measurements. These estimates reflect our best judgment about current, and for some estimates future, economic and market conditions and their effects based on information available as of the date of these financial statements. If these conditions change from those expected, it is reasonably possible that these judgments and estimates could change, which may result in incremental losses on loan receivables, or material changes to our Condensed Consolidated Statement of Financial Position, among other effects. See “Management's Discussion and Analysis—Critical Accounting Estimates” in our 2023 Form 10-K, for a detailed discussion of these critical accounting estimates.
Regulation and Supervision
____________________________________________________________________________________________
Our business, including our relationships with our customers, is subject to regulation, supervision and examination under U.S. federal, state and foreign laws and regulations. These laws and regulations cover all aspects of our business, including lending and collection practices, treatment of our customers, safeguarding deposits, customer privacy and information security, capital structure, liquidity, dividends and other capital distributions, transactions with affiliates, and conduct and qualifications of personnel. Such laws and regulations directly and indirectly affect key drivers of our profitability, including, for example, capital and liquidity, product offerings, risk management, and costs of compliance.
As a savings and loan holding company and a financial holding company, Synchrony is subject to regulation, supervision and examination by the Federal Reserve Board. As a large provider of consumer financial services, we are also subject to regulation, supervision and examination by the CFPB.
The Bank is a federally chartered savings association. As such, the Bank is subject to regulation, supervision and examination by the OCC, which is its primary regulator, and by the CFPB. In addition, the Bank, as an insured depository institution, is supervised by the FDIC.
On March 5, 2024, the CFPB released a final rule amending its regulations that implement the Truth in Lending Act to, among other things, lower the safe harbor dollar amount for credit card late fees from the prior $30 (adjusted to $41 for each subsequent late payment within the next six billing cycles) to $8 and to eliminate the automatic annual inflation adjustment to such safe harbor dollar amount. The final rule had an original effective date of May 14, 2024. Industry organizations have challenged the final rule in court, and on May 10, 2024, the United States District Court for the Northern District of Texas granted an injunction and stay of the final rule, and the injunction granted remains in effect. The final outcome of such challenge, including the impact on the final rule, is uncertain. See "Business Trends and Conditions" above for the anticipated financial impacts related to the final rule.
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On June 20, 2024, the FDIC released a final rule imposing additional requirements for the content of resolution plans submitted by insured depository institutions with $100 billion or more in total assets, including the Bank, following the rule’s effective date of October 1, 2024. Under the final rule, if the FDIC deems a resolution plan filing not credible and the insured depository institution fails to resubmit a credible plan, the institution could become subject to an enforcement action. Our first resolution plan under the final rule is due on July 1, 2025 and we will be required to file a resolution plan once every three years thereafter. Additionally, we will be required to submit interim supplements annually. We are evaluating the impact of the final rule.
On July 30, 2024, the FDIC issued a proposed rule that would revise the FDIC’s regulations governing the classification and treatment of brokered deposits. The proposal would, among other changes, broaden the definition of deposit broker to include agents that place or facilitate the placement of third-party deposits at only one insured depository institution and agents that receive a fee or other remuneration in exchange for the placement of deposits. In addition, the proposal would narrow the exception to the definition of deposit broker for agents whose primary purpose is not the placement of funds with depository institutions. While we are evaluating the potential impact of the proposed rule, if the rule is finalized as proposed, the Bank may be required to classify a greater amount of its deposits obtained with the involvement of third parties as brokered deposits. An increase in the amount of brokered deposits on the Bank’s balance sheet could, among other consequences, increase the Bank’s deposit insurance assessment costs.
On September 10, 2024, the Vice Chair for Supervision at the Federal Reserve Board (the "Vice Chair"), gave a speech outlining a set of potential revisions to the July 2023 interagency proposed rule to revise the U.S. regulatory capital framework (known as the “Basel Endgame” proposal). In the speech, the Vice Chair indicated that he will recommend that the Federal Reserve Board issue a re-proposal of the rule in which banking organizations with total assets between $100 billion and $250 billion, such as Synchrony, would not be subject to the changes to their capital requirements that were included in the July 2023 Basel Endgame proposal, other than the proposed requirement to recognize unrealized gains and losses of their securities in regulatory capital. It remains uncertain whether the federal banking agencies will re-propose the Basel Endgame rule, and if so, whether the agencies will adopt the Vice Chair’s recommendations.
On September 17, 2024, the OCC finalized a new Policy Statement Regarding Statutory Factors Under the Bank Merger Act (the “Policy Statement”), which outlines factors that the OCC will consider when evaluating a proposed bank merger transaction. Also on September 17, 2024, the United States Department of Justice (the “DOJ”) withdrew its 1995 Bank Merger Guidelines and announced that it will instead evaluate the competitive impact of bank mergers using its 2023 Merger Guidelines that the DOJ applies to mergers in all industries. Compared to the 1995 Bank Merger Guidelines, the 2023 Merger Guidelines set forth more stringent concentration limits and add several largely qualitative bases on which the DOJ may challenge a merger. While the effect of these changes for particular transactions remains unclear, both the Policy Statement and the change in the DOJ’s bank merger antitrust policy may make it more difficult and/or costly for us to obtain regulatory approval for an acquisition or may otherwise result in more onerous conditions to obtain approval for an acquisition.
See “Regulation—Regulation Relating to Our Business” in our 2023 Form 10-K for additional information on regulations that apply to us, and “—Capital” above, for discussion of the impact of regulations and supervision on our capital and liquidity, including our ability to pay dividends and repurchase stock.



35

ITEM 1. FINANCIAL STATEMENTS
Synchrony Financial and subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
____________________________________________________________________________________________
Three months ended September 30,Nine months ended September 30,
($ in millions, except per share data)2024202320242023
Interest income:
Interest and fees on loans (Note 5)$5,522 $5,151 $16,116 $14,579 
Interest on cash and debt securities263 203 819 582 
Total interest income5,785 5,354 16,935 15,161 
Interest expense:
Interest on deposits968 800 2,889 2,074 
Interest on borrowings of consolidated securitization entities108 86 323 241 
Interest on senior and subordinated unsecured notes100 106 304 313 
Total interest expense1,176 992 3,516 2,628 
Net interest income4,609 4,362 13,419 12,533 
Retailer share arrangements(914)(979)(2,488)(2,783)
Provision for credit losses (Note 5)1,597 1,488 5,172 4,161 
Net interest income, after retailer share arrangements and provision for credit losses2,098 1,895 5,759 5,589 
Other income:
Interchange revenue256 267 760 761 
Protection product revenue 145 131 411 371 
Loyalty programs(346)(358)(1,011)(1,001)
Other (Note 3)64 52 1,233 87 
Total other income119 92 1,393 218 
Other expense:
Employee costs464 444 1,394 1,346 
Professional fees231 219 687 614 
Marketing and business development 123 125 377 389 
Information processing 203 177 596 522 
Other 168 189 518 571 
Total other expense 1,189 1,154 3,572 3,442 
Earnings before provision for income taxes1,028 833 3,580 2,365 
Provision for income taxes (Note 14)239 205 855 567 
Net earnings$789 $628 $2,725 $1,798 
Net earnings available to common stockholders$768 $618 $2,674 $1,767 
Earnings per share (Note 12)
Basic$1.96 $1.49 $6.71 $4.16 
Diluted$1.94 $1.48 $6.65 $4.14 




See accompanying notes to condensed consolidated financial statements.
36

Synchrony Financial and subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
____________________________________________________________________________________________
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Net earnings$789 $628 $2,725 $1,798 
Other comprehensive income (loss)
Debt securities21 3 20 31 
Currency translation adjustments3 (2)(1)(1)
Employee benefit plans(1)(1)(1)(1)
Other comprehensive income (loss)23 — 18 29 
Comprehensive income$812 $628 $2,743 $1,827 
Amounts presented net of taxes.







































See accompanying notes to condensed consolidated financial statements.
37

Synchrony Financial and subsidiaries
Condensed Consolidated Statements of Financial Position (Unaudited)
____________________________________________________________________________________________
($ in millions)At September 30, 2024At December 31, 2023
Assets
Cash and equivalents$17,934 $14,259 
Debt securities (Note 4)2,345 3,799 
Loan receivables: (Notes 5 and 6)
Unsecuritized loans held for investment81,005 81,554 
Restricted loans of consolidated securitization entities21,188 21,434 
Total loan receivables102,193 102,988 
Less: Allowance for credit losses(11,029)(10,571)
Loan receivables, net91,164 92,417 
Goodwill (Note 7)1,274 1,018 
Intangible assets, net (Note 7)765 815 
Other assets5,747 4,915 
Assets held for sale (Note 3)— 256 
Total assets$119,229 $117,479 
Liabilities and Equity
Deposits: (Note 8)
Interest-bearing deposit accounts$81,901 $80,789 
Non-interest-bearing deposit accounts383 364 
Total deposits82,284 81,153 
Borrowings: (Notes 6 and 9)
Borrowings of consolidated securitization entities8,015 7,267 
Senior and subordinated unsecured notes7,617 8,715 
Total borrowings15,632 15,982 
Accrued expenses and other liabilities5,333 6,334 
Liabilities held for sale (Note 3)— 107 
Total liabilities$103,249 $103,576 
Equity:
Preferred stock, par share value $0.001 per share; 1,250,000 and 750,000 shares authorized at September 30, 2024 and December 31, 2023, respectively; 1,250,000 and 750,000 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively, and aggregate liquidation preference of $1,250 at September 30, 2024 and $750 at December 31, 2023
$1,222 $734 
Common Stock, par share value $0.001 per share; 4,000,000,000 shares authorized; 833,984,684 shares issued at both September 30, 2024 and December 31, 2023; 389,224,881 and 406,875,775 shares outstanding at September 30, 2024 and December 31, 2023, respectively
1 1 
Additional paid-in capital9,822 9,775 
Retained earnings20,975 18,662 
Accumulated other comprehensive income (loss):
Debt securities(13)(33)
Currency translation adjustments(39)(38)
Employee benefit plans2 3 
Treasury stock, at cost; 444,759,803 and 427,108,909 shares at September 30, 2024 and December 31, 2023, respectively
(15,990)(15,201)
Total equity15,980 13,903 
Total liabilities and equity$119,229 $117,479 
See accompanying notes to condensed consolidated financial statements.
38

Synchrony Financial and subsidiaries
Condensed Consolidated Statements of Changes in Equity (Unaudited)
____________________________________________________________________________________________
Preferred StockCommon Stock
($ in millions,
shares in thousands)		Shares IssuedAmountShares IssuedAmountAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury StockTotal Equity
Balance at
January 1, 2023
750 $734 833,985 $1 $9,718 $16,716 $(125)$(14,171)$12,873 
Cumulative effect of change in accounting principle— — — — — 222 — — 222 
Adjusted balance, beginning of period750 $734 833,985 $1 $9,718 $16,938 $(125)$(14,171)$13,095 
Net earnings— — — — — 601 — — 601 
Other comprehensive income— — — — — — 23 — 23 
Purchases of treasury stock— — — — — — — (404)(404)
Stock-based compensation— — — — (13)(59)— 61 (11)
Dividends - Series A preferred stock
($14.06 per share)
— — — — — (11)— — (11)
Dividends - common stock
($0.23 per share)
— — — — — (100)— — (100)
Balance at
March 31, 2023
750 $734 833,985 $1 $9,705 $17,369 $(102)$(14,514)$13,193 
Net earnings— — — — — 569 — — 569 
Other comprehensive income— — — — — — 6 — 6 
Purchases of treasury stock— — — — — — — (303)(303)
Stock-based compensation— — — — 22 (1)— 3 24 
Dividends - Series A preferred stock
($14.06 per share)
— — — — — (10)— — (10)
Dividends - common stock
($0.23 per share)
— — — — — (99)— — (99)
Balance at
June 30, 2023
750 $734 833,985 $1 $9,727 $17,828 $(96)$(14,814)$13,380 
Net earnings— — — — — 628 — — 628 
Other comprehensive income— — — — — — — — — 
Purchases of treasury stock— — — — — — — (152)(152)
Stock-based compensation— — — — 23 (4)— 6 25 
Dividends - Series A preferred stock
($14.06 per share)
— — — — — (10)— — (10)
Dividends - common stock
($0.25 per share)
— — — — — (104)— — (104)
Balance at
September 30, 2023
750 $734 833,985 $1 $9,750 $18,338 $(96)$(14,960)$13,767 
39

Preferred StockCommon Stock
($ in millions,
shares in thousands)		Shares IssuedAmountShares IssuedAmountAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury StockTotal Equity
Balance at
January 1, 2024
750 $734 833,985 $1 $9,775 $18,662 $(68)$(15,201)$13,903 
Net earnings— — — 1,293 — — 1,293 
Other comprehensive income— — — — — — (1)— (1)
Issuance of preferred stock500 488 — — — — — — 488 
Purchases of treasury stock— — — — — — — (300)(300)
Stock-based compensation— — — — (7)(52)— 71 12 
Dividends - Series A preferred stock
($14.06 per share)
— — — — — (11)— — (11)
Dividends - common stock
($0.25 per share)
— — — — — (102)— — (102)
Balance at
March 31, 2024
1,250 $1,222 833,985 $1 $9,768 $19,790 $(69)$(15,430)$15,282 
Net earnings— — — — — 643 — — 643 
Other comprehensive income— — — — — — (4)— (4)
Purchases of treasury stock— — — — — — — (305)(305)
Stock-based compensation— — — — 25 (4)— 22 43 
Dividends - Series A preferred stock
($14.06 per share)
— — — — — (10)— — (10)
Dividends - Series B preferred stock
($18.79 per share)
— — — — — (9)— — (9)
Dividends - common stock
($0.25 per share)
— — — — — (100)— — (100)
Balance at
June 30, 2024
1,250 $1,222 833,985 $1 $9,793 $20,310 $(73)$(15,713)$15,540 
Net earnings— — — — — 789 — — 789 
Other comprehensive income— — — — — — 23 — 23 
Purchases of treasury stock— — — — — — — (302)(302)
Stock-based compensation— — — — 29 (4)— 25 50 
Dividends - Series A preferred stock
($14.06 per share)
— — — — — (11)— — (11)
Dividends - Series B preferred stock ($20.63 per share)
— — — — — (10)— — (10)
Dividends - common stock
($0.25 per share)
— — — — — (99)— — (99)
Balance at September 30, 2024
1,250 $1,222 833,985 $1 $9,822 $20,975 $(50)$(15,990)$15,980 






See accompanying notes to condensed consolidated financial statements.
40

Synchrony Financial and subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
____________________________________________________________________________________________
Nine months ended September 30,
($ in millions)
20242023
Cash flows - operating activities
Net earnings$2,725 $1,798 
Adjustments to reconcile net earnings to cash provided from operating activities
Provision for credit losses5,172 4,161 
Deferred income taxes(80)(271)
Depreciation and amortization361 340 
(Increase) decrease in interest and fees receivable230 (323)
(Increase) decrease in other assets(5)37 
Increase (decrease) in accrued expenses and other liabilities(192)(7)
Gain on sale of business(1,069)— 
All other operating activities353 541 
Cash provided from (used for) operating activities7,495 6,276 
Cash flows - investing activities
Maturity and sales of debt securities2,961 3,882 
Purchases of debt securities(1,422)(1,642)
Acquisitions, net of cash acquired(1,935)— 
Proceeds from sale of business, net of cash and restricted cash sold491 — 
Net (increase) decrease in loan receivables, including held for sale(3,545)(8,797)
All other investing activities (490)(508)
Cash provided from (used for) investing activities(3,940)(7,065)
Cash flows - financing activities
Borrowings of consolidated securitization entities
Proceeds from issuance of securitized debt1,694 1,547 
Maturities and repayment of securitized debt(950)(1,257)
Senior and subordinated unsecured notes
Proceeds from issuance of senior and subordinated unsecured notes745 740 
Maturities and repayment of senior and subordinated unsecured notes(1,850)— 
Proceeds from issuance of preferred stock488 — 
Dividends paid on preferred stock(51)(31)
Net increase (decrease) in deposits1,120 6,354 
Purchases of treasury stock(907)(859)
Dividends paid on common stock(301)(303)
All other financing activities18 (32)
Cash provided from (used for) financing activities6 6,159 
Increase (decrease) in cash and equivalents, including restricted amounts3,561 5,370 
Cash and equivalents, including restricted amounts, at beginning of period14,420 10,430 
Cash and equivalents at end of period:
Cash and equivalents17,934 15,643 
Restricted cash and equivalents included in other assets47 157 
Total cash and equivalents, including restricted amounts, at end of period$17,981 $15,800 
See accompanying notes to condensed consolidated financial statements.
41

Synchrony Financial and subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
____________________________________________________________________________________________
NOTE 1.    BUSINESS DESCRIPTION
Synchrony Financial (the “Company”) provides a range of credit products through financing programs it has established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. We primarily offer private label, Dual Card, co-brand and general purpose credit cards, as well as short- and long-term installment loans, and savings products insured by the Federal Deposit Insurance Corporation (“FDIC”) through Synchrony Bank (the “Bank”).
References to the “Company”, “we”, “us” and “our” are to Synchrony Financial and its consolidated subsidiaries unless the context otherwise requires.
NOTE 2.    BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying condensed consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“GAAP”).
Preparing financial statements in conformity with U.S. GAAP requires us to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions (for example, unemployment, housing, interest rates and market liquidity) which affect reported amounts and related disclosures in our condensed consolidated financial statements. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that actual conditions could be different than anticipated in those estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in incremental losses on loan receivables, future impairments of debt securities, goodwill and intangible assets, increases in reserves for contingencies, establishment of valuation allowances on deferred tax assets and increases in our tax liabilities.
We primarily conduct our business within the United States and substantially all of our revenues are from U.S. customers. The operating activities conducted by our non-U.S. affiliates use the local currency as their functional currency. The effects of translating the financial statements of these non-U.S. affiliates to U.S. dollars are included in equity. Asset and liability accounts are translated at period-end exchange rates, while revenues and expenses are translated at average rates for the respective periods.
Consolidated Basis of Presentation
The Company’s financial statements have been prepared on a consolidated basis. Under this basis of presentation, our financial statements consolidate all of our subsidiaries – i.e., entities in which we have a controlling financial interest, most often because we hold a majority voting interest. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. We consolidate certain securitization entities under the VIE model. See Note 6. Variable Interest Entities.
Interim Period Presentation
The condensed consolidated financial statements and notes thereto are unaudited. These statements include all adjustments (consisting of normal recurring accruals) that we considered necessary to present a fair statement of our results of operations, financial position and cash flows. The results reported in these condensed consolidated financial statements should not be considered as necessarily indicative of results that may be expected for the entire year. These condensed consolidated financial statements should be read in conjunction with our 2023 annual consolidated financial statements and the related notes in our Annual Report on Form 10-K for the year ended December 31, 2023 (our "2023 Form 10-K").
42

New Accounting Standards
Recently Issued But Not Yet Adopted Accounting Standards
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements and requires enhanced disclosures about significant segment expenses. The Company will adopt this guidance on a retrospective basis on its effective date, which for us is beginning within our December 31, 2024 Form 10-K.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disclosure of specific categories in the rate reconciliation, as well as additional qualitative information about the reconciliation, and additional disaggregated information about income taxes paid. The Company will adopt this guidance on a retrospective basis on its effective date, which for us is beginning within our December 31, 2025 Form 10-K.
Equity Method Investments
We use the equity method of accounting for investments where we have significant influence, but not control, over the operating and financial policies of the investee. Our assessment of significant influence includes factors such as our ownership interest, legal form, and representation on the board of directors. The Company generally records the initial investment at cost or fair value, as appropriate. Subsequently, we adjust each investment for our proportionate share of net income or loss in the investee. We amortize, where appropriate, differences between the Company’s cost basis and underlying equity in net assets, which are reported in Other Income. The Company evaluates equity method investments for other-than-temporary impairment when events or changes in circumstance indicate that the carrying amount of the investment might not be recoverable.
See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our 2023 annual consolidated financial statements in our 2023 Form 10-K, for additional information on our other significant accounting policies.

43

NOTE 3.    ACQUISITIONS AND DISPOSITIONS
Ally Lending
On March 1, 2024, we acquired Ally Financial Inc.'s point of sale financing business, ("Ally Lending") for cash consideration of $2.0 billion. This acquisition deepens our presence and reach in the home improvement and health and wellness sectors, including high-growth specialty areas such as roofing, HVAC, and windows, as well as in cosmetic, audiology, and dentistry.
The Ally Lending acquisition has been accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed were recorded at their estimated fair value as of the acquisition date.
There were no adjustments to the fair value of assets acquired and liabilities assumed (measurement period adjustments) related to the acquisition during the three months ended September 30, 2024. During the nine months ended September 30, 2024, measurement period adjustments were recognized related to the acquisition as detailed in the table below.
($ in millions)Amounts Recognized as of Acquisition Date (as previously reported as of March 31, 2024)
Measurement Period Adjustments
Amounts Recognized as of Acquisition Date (as adjusted)
Assets acquired
Cash
$34 $— $34 
Loan receivables(a)
1,875 (198)1,677 
Intangible assets, net23 (5)18 
Other assets2 — 2 
Total $1,934 $(203)$1,731 
Liabilities assumed
Other liabilities(16)2 (14)
Total net identifiable assets acquired$1,918 $(201)$1,717 
Less: Total cash consideration paid$1,969 $— $1,969 
Goodwill$51 $201 $252 
_______________________
(a)    Loan discounts are recognized into interest income over the estimated remaining life of the acquired loans. The were no changes to the provisional amount of loan discount recorded in the three months ended September 30, 2024.

The amounts above represent the estimated fair values of the respective assets acquired and liabilities assumed as of the date of acquisition. The estimated fair values reflect market participant assumptions about facts and circumstances existing at the acquisition date. The measurement period adjustments reflected above did not result from events occurring subsequent to the acquisition date.
The valuation of the assets acquired and liabilities assumed is substantially complete and will be finalized no later than one year after the acquisition date. The goodwill recognized related to the acquisition is tax-deductible and reflects the expected synergies and operational efficiencies arising from the transaction.
44

The acquisition primarily included loan receivables with an unpaid principal balance of $2.2 billion. These loan receivables are reported within Consumer installment loans in Note 5. Loan Receivables and Allowance for Credit Losses. To determine the provisional fair value of loans at acquisition, we estimate expected cash flows and discount those cash flows using an observable market rate of interest, when available, adjusted for factors that a market participant would consider in determining fair value. In determining fair value, expected cash flows are adjusted to include prepayment, default rate, and loss severity estimates. The difference between the fair value and the amount contractually due is recorded as a loan discount or premium at acquisition. Including the impact of measurement period adjustments, the provisional loan discount at the acquisition date was $469 million, which is to be amortized into interest income over the estimated remaining life of the loans, as described within Note 2. Basis of Presentation and Summary of Significant Accounting Policies within our 2023 Form 10-K. The interest and fees related to the acquired business are included in our Condensed Consolidated Statements of Earnings subsequent to the acquisition date and totaled $91 million and $232 million for the three and nine months ended September 30, 2024, respectively. These amounts include amortization of the loan discount recognized at acquisition of $42 million and $122 million, respectively. Expense activities, including those associated with the acquired business, are managed for the Company as a whole.
Loans acquired without a more-than-insignificant credit deterioration since origination are measured under the Allowance for Credit Losses model, as described within Note 2. Basis of Presentation and Summary of Significant Accounting Policies within our 2023 Form 10-K. The Company’s best estimate of contractual cash flows not expected to be collected at the date of acquisition was $180 million, which is included within our allowance for credit losses, and recognized through provision for credit losses in our Condensed Consolidated Statements of Earnings for the nine months ended September 30, 2024.
Included in the acquisition was $64 million of loans that have experienced more-than-insignificant deterioration in credit quality since origination (referred to as “purchased credit deteriorated” or “PCD” assets) that were not immediately written off at the acquisition date and are subject to specific guidance upon acquisition. An allowance for PCD assets of $39 million was recorded at the date of acquisition. Subsequent to initial recognition, the accounting for the PCD assets will generally follow the Allowance for Credit Losses model described within Note 2. Basis of Presentation and Summary of Significant Accounting Policies of our 2023 Form 10-K.
Pets Best
In March 2024, we sold our wholly-owned subsidiary, Pets Best Insurance Services, LLC (“Pets Best”) to Poodle Holdings, Inc. (“Buyer”) for consideration comprising a combination of cash and an equity interest of less than 10% in Independence Pet Holdings, Inc., ("IPH") an affiliate of Buyer. In connection with the sale, IPH also appointed two Synchrony executives to its board of directors. The sale of Pets Best resulted in the recognition of a gain on sale of $1.1 billion or $802 million, net of tax in the three months ended March 31, 2024. The pre-tax gain amount has been recognized within the Other component of Other Income in our Condensed Consolidated Statements of Earnings.
The Company’s initial equity investment in IPH was recorded in Other Assets on our Condensed Consolidated Statements of Financial Position and is accounted for under the equity method of accounting. The investment was recorded at its estimated fair value at the date acquired of $605 million. The estimated fair value at acquisition date was determined using a weighted average methodology of three approaches: a market approach which includes using a multiple of projected revenues, precedent transactions and an intrinsic value analysis. The market-multiple approach was established based on a selected group of publicly traded companies. The use of selected precedent transaction multiples was calibrated to the valuation outcome using the market approach. Intrinsic value analysis determines implied multiples primarily based upon recent market studies and forecasted performance. The change in the carrying value of our equity investment in IPH subsequent to the date acquired was not material.
45

NOTE 4.    DEBT SECURITIES
All of our debt securities are classified as available-for-sale and are held to meet our liquidity objectives or to comply with the Community Reinvestment Act (“CRA”). Our debt securities consist of the following:
September 30, 2024December 31, 2023
GrossGrossGrossGross
AmortizedunrealizedunrealizedEstimatedAmortizedunrealizedunrealizedEstimated
 ($ in millions)costgainslossesfair valuecostgainslossesfair value
U.S. government and federal agency$814 $5 $— $819 $2,264 $1 $(1)$2,264 
State and municipal17 — — 17 10 — — 10 
Residential mortgage-backed(a)
345 — (29)316 392 — (38)354 
Asset-backed(b)
1,178 8 (1)1,185 1,167 4 (8)1,163 
Other8 — — 8 8 — — 8 
Total(c)
$2,362 $13 $(30)$2,345 $3,841 $5 $(47)$3,799 
_______________________
(a)    All of our residential mortgage-backed securities have been issued by government-sponsored entities and are collateralized by U.S. mortgages.
(b)    Our asset-backed securities are collateralized by credit card and auto loans.
(c)    At September 30, 2024 and December 31, 2023, the estimated fair value of debt securities pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances was $701 million and $360 million, respectively.
The following table presents the estimated fair values and gross unrealized losses of our available-for-sale debt securities:
In loss position for
Less than 12 months12 months or more
GrossGross
EstimatedunrealizedEstimatedunrealized
 ($ in millions)fair valuelossesfair valuelosses
At September 30, 2024
U.S. government and federal agency$— $— $— $— 
State and municipal5 — 4 — 
Residential mortgage-backed— — 305 (29)
Asset-backed43 — 136 (1)
Other— — — — 
Total$48 $— $445 $(30)
At December 31, 2023
U.S. government and federal agency$495 $— $399 $(1)
State and municipal— — 9 — 
Residential mortgage-backed1 — 346 (38)
Asset-backed171 — 244 (8)
Other— — 8 — 
Total$667 $— $1,006 $(47)
We regularly review debt securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Based on our assessment, no material impairments for credit losses were recognized during the period.
46

We presently do not intend to sell our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell these securities before recovery of our amortized cost.
Contractual Maturities of Investments in Available-for-Sale Debt Securities
AmortizedEstimated Weighted
At September 30, 2024 ($ in millions)costfair value
average yield (a)
Due
Within one year$1,272 $1,275 4.8 %
After one year through five years$747 $755 5.0 %
After five years through ten years$149 $141 1.8 %
After ten years$194 $174 2.2 %
_____________________
(a)Weighted average yield is calculated based on the amortized cost of each security. In calculating yield, no adjustment has been made with respect to any tax-exempt obligations.
All securities are presented above based upon contractual maturity date, except our asset-backed securities which are allocated based upon expected final payment date. We expect actual maturities to differ from contractual maturities because borrowers have the right to prepay certain obligations.
There were no material realized gains or losses recognized for the nine months ended September 30, 2024 and 2023.
Although we generally do not have the intent to sell any specific securities held at September 30, 2024, in the ordinary course of managing our debt securities portfolio, we may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield, liquidity requirements and funding obligations.
NOTE 5.    LOAN RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES
($ in millions)September 30, 2024December 31, 2023
Credit cards$94,008 $97,043 
Consumer installment loans6,125 3,977 
Commercial credit products1,936 1,839 
Other 124 129 
Total loan receivables, before allowance for credit losses(a)(b)(c)
$102,193 $102,988 
_______________________
(a)Total loan receivables include $21.2 billion and $21.4 billion of restricted loans of consolidated securitization entities at September 30, 2024 and December 31, 2023, respectively. See Note 6. Variable Interest Entities for further information on these restricted loans.
(b)At September 30, 2024 and December 31, 2023, loan receivables included deferred costs, net of purchase discounts and deferred income, of $(251) million and $213 million, respectively.
(c)At September 30, 2024 and December 31, 2023, $21.2 billion and $22.4 billion, respectively, of loan receivables were pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances.

47

Allowance for Credit Losses(a)(b)
 ($ in millions)Balance at
July 1, 2024
Provision charged to operations(c)
Gross charge-offsRecoveries
Other
Balance at
September 30, 2024
Credit cards$10,255 $1,460 $(1,720)$291 $— $10,286 
Consumer installment loans602 99 (100)11 — 612 
Commercial credit products123 41 (37)2 — 129 
Other2 — — — — 2 
Total$10,982 $1,600 $(1,857)$304 $— $11,029 
($ in millions)Balance at
July 1, 2023		Provision charged to operationsGross charge-offsRecoveriesBalance at
September 30, 2023
Credit cards$9,464 $1,357 $(1,265)$225 $9,781 
Consumer installment loans221 92 (59)10 264 
Commercial credit products112 38 (28)2 124 
Other7 1 (1)— 7 
Total$9,804 $1,488 $(1,353)$237 $10,176 
 ($ in millions)Balance at
January 1, 2024
Provision charged to operations(c)
Gross charge-offsRecoveries
Other(d)
Balance at
September 30, 2024
Credit cards$10,156 $4,515 $(5,313)$921 $7 $10,286 
Consumer installment loans279 557 (297)34 39 612 
Commercial credit products131 101 (109)6 — 129 
Other5 (2)(1)— — 2 
Total$10,571 $5,171 $(5,720)$961 $46 $11,029 
($ in millions)Balance at
January 1, 2023		Impact of ASU 2022-02 Adoption
Post-Adoption Balance at January 1, 2023
Provision charged to operationsGross charge-offsRecoveriesBalance at
September 30, 2023
Credit cards$9,225 $(294)$8,931 $3,853 $(3,697)$694 $9,781 
Consumer installment loans208 1 209 182 (148)21 264 
Commercial credit products87 (1)85 126 (93)6 124 
Other7 — 8 — (1)— 7 
Total$9,527 $(294)$9,233 $4,161 $(3,939)$721 $10,176 
_______________________
(a)The allowance for credit losses at September 30, 2024 and 2023 reflects our estimate of expected credit losses for the life of the loan receivables on our Condensed Consolidated Statements of Financial Position at September 30, 2024 and 2023 which includes the consideration of current and expected macroeconomic conditions that existed at those dates.
(b)Excluded from the table above are allowance for credit losses for loan receivables acquired and immediately written off within the period presented.
(c)Provision for credit losses in the Condensed Consolidated Statements of Earnings for the three and nine months ended September 30, 2024 also includes amounts associated with off-balance sheet credit exposures recorded in Accrued expenses and other liabilities in the Condensed Consolidated Statements of Financial Position.
(d)Primarily represents allowance for credit losses for PCD assets.
The reasonable and supportable forecast period used in our estimate of credit losses at September 30, 2024 was 12 months, consistent with the forecast period utilized since the adoption of CECL. Beyond the reasonable and supportable forecast period, we revert to historical loss information at the loan receivables segment level over a 6-month period, gradually increasing the weight of historical losses by an equal amount each month during the reversion period, and utilize historical loss information thereafter for the remaining life of the portfolio. The reversion period and methodology remain unchanged since the adoption of CECL.
48

Losses on loan receivables, including those which are modified for borrowers experiencing financial difficulty, are estimated and recognized upon origination of the loan, based on expected credit losses for the life of the loan balance at September 30, 2024. Expected credit loss estimates are developed using both quantitative models and qualitative adjustments, and incorporates a macroeconomic forecast, as described within Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our 2023 annual consolidated financial statements within our 2023 Form 10-K. The current and forecasted economic conditions at the balance sheet date influenced our current estimate of expected credit losses, which reflects our expectations of the macroeconomic environment. There have been no significant changes in our overall expectation of credit losses during the current quarterly period. We continued to experience a decrease in payment rates from the second quarter and have also experienced an increase in net charge-offs during the nine months ended September 30, 2024 as compared to the prior year period. These conditions are reflected in our current estimate of expected credit losses. Our allowance for credit losses increased to $11.0 billion during the nine months ended September 30, 2024, primarily reflecting these conditions and the impact of the Ally Lending acquisition. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our 2023 annual consolidated financial statements within our 2023 Form 10-K for additional information on our significant accounting policies related to our allowance for credit losses.
Delinquent and Non-accrual Loans
The following table provides information on our delinquent and non-accrual loans:
At September 30, 2024 ($ in millions)30-89 days delinquent90 or more days delinquentTotal past due90 or more days delinquent and accruingTotal non-accruing
Credit cards$2,318 $2,298 $4,616 $2,298 $— 
Consumer installment loans134 40 174 — 40 
Commercial credit products49 44 93 44 — 
Total delinquent loans$2,501 $2,382 $4,883 $2,342 $40 
Percentage of total loan receivables2.4 %2.3 %4.8 %2.3 %— %
At December 31, 2023 ($ in millions)30-89 days delinquent90 or more days delinquentTotal past due90 or more days delinquent and accruingTotal non-accruing
Credit cards$2,375 $2,290 $4,665 $2,290 $— 
Consumer installment loans96 23 119 — 23 
Commercial credit products61 40 101 40 — 
Total delinquent loans$2,532 $2,353 $4,885 $2,330 $23 
Percentage of total loan receivables2.5 %2.3 %4.7 %2.3 %— %

49

Credit Quality Indicators
Our loan receivables portfolio includes both secured and unsecured loans. Secured loan receivables are largely comprised of consumer installment loans secured by equipment. Unsecured loan receivables are largely comprised of our open-ended consumer and commercial revolving credit card loans. As part of our credit risk management activities, on an ongoing basis, we assess overall credit quality by reviewing information related to the performance of a customer’s account with us, including delinquency information, as well as information from credit bureaus relating to the customer’s broader credit performance. We utilize VantageScore credit scores to assist in our assessment of credit quality. VantageScore credit scores are obtained at origination of the account and are refreshed, at a minimum quarterly, but could be as often as weekly, to assist in predicting customer behavior. We categorize these credit scores into the following three credit score categories: (i) 651 or higher, which are considered the strongest credits; (ii) 591 to 650, considered moderate credit risk; and (iii) 590 or less, which are considered weaker credits. There are certain customer accounts, including for our commercial credit products, for which a VantageScore credit score may not be available where we use alternative sources to assess their credit quality and predict behavior. The following table provides the most recent VantageScore credit scores, or equivalent, available for our revolving credit card and commercial credit product customers at September 30, 2024, December 31, 2023 and September 30, 2023, respectively, as a percentage of each class of loan receivable. The table below excludes 0.3% of our total loan receivables balance for our credit cards and commercial credit products at each of September 30, 2024, December 31, 2023 and September 30, 2023, which represents those customer accounts for which a VantageScore credit score, or equivalent, is not available.
September 30, 2024December 31, 2023September 30, 2023
651 or591 to590 or651 or591 to590 or651 or591 to590 or
higher650 lesshigher650 lesshigher650 less
Credit cards72 %19 %9 %72 %19 %9 %73 %19 %8 %
Commercial credit products 83 %7 %10 %83 %10 %7 %86 %7 %7 %
Consumer Installment Loans
Delinquency trends are the primary credit quality indicator for our consumer installment loans, which we use to monitor credit quality and risk within the portfolio. The tables below include information on our consumer installment loans by origination year. The amounts for the current year period include information related to loan receivables associated with the Ally Lending acquisition. See Note 3. Acquisitions and Dispositions for additional information.
Consumer Installment Loans by Origination Year
By origination year
At September 30, 2024 ($ in millions)
20242023202220212020PriorTotal
Amortized cost basis$2,269 $1,997 $1,129 $484 $201 $45 $6,125 
30-89 days delinquent$34 $47 $32 $14 $6 $1 $134 
90 or more days delinquent$10 $14 $11 $4 $1 $— $40 

By origination year
At December 31, 2023 ($ in millions)20232022202120202019PriorTotal
Amortized cost basis$2,097 $931 $541 $312 $69 $27 $3,977 
30-89 days delinquent$44 $25 $15 $9 $2 $1 $96 
90 or more days delinquent$11 $6 $4 $2 $— $— $23 

Gross Charge-offs for Consumer Installment Loans by Origination Year
By origination year
For the nine months ended ($ in millions)
20242023202220212020PriorTotal
September 30, 2024
$23 $135 $87 $35 $13 $4 $297 
September 30, 2023
$— $29 $66 $32 $15 $6 $148 
50

Loan Modifications to Borrowers Experiencing Financial Difficulty
The Company adopted ASU 2022-02 at January 1, 2023 on a modified retrospective basis through a cumulative adjustment to retained earnings. The new guidance is applicable for all loans modified to borrowers experiencing financial difficulties since January 1, 2023. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies - Allowance for Credit Losses - Loan Modifications to Borrowers Experiencing Financial Difficulty within our 2023 Form 10-K for additional information on our significant accounting policies related to loan modifications to borrowers experiencing financial difficulty.
The following table provides information on our loan modifications made to borrowers experiencing financial difficulty during the periods presented, which do not include loans that are classified as loan receivables held for sale:
Three months ended September 3020242023
($ in millions)
Amount(a)
% of Total Class of Loan Receivables
Amount
% of Total Class of Loan Receivables
Long-term modifications
Credit cards$442 0.5 %$412 0.4 %
Consumer installment loans— — %— — %
Commercial credit products3 0.2 %1 0.1 %
Short-term modifications
Credit cards231 0.2 %163 0.2 %
Consumer installment loans— — %— — %
Commercial credit products— — %— — %
Total$676 0.7 %$576 0.6 %
Nine months ended September 3020242023
($ in millions)
Amount(a)
% of Total Class of Loan Receivables
Amount
% of Total Class of Loan Receivables
Long-term modifications
Credit cards$1,322 1.4 %$1,134 1.2 %
Consumer installment loans— — %— — %
Commercial credit products7 0.4 %4 0.2 %
Short-term modifications
Credit cards704 0.7 %440 0.5 %
Consumer installment loans— — %— — %
Commercial credit products1 — %— — %
Total$2,034 2.0 %$1,578 1.6 %
_______________________
(a)Represents balance at enrollment date. Long-term and short-term loan modifications made to borrowers for the nine months ended September 30, 2024 had amortized cost balances at September 30, 2024 of $1.1 billion and $149 million, respectively.
Financial Effects of Loan Modifications to Borrowers Experiencing Financial Difficulty
As part of our loan modifications to borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability.
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For long-term modifications made in the three and nine months ended September 30, 2024 and September 30, 2023, the financial effect of these modifications reduced the weighted-average interest rates by 97% for all periods presented. For short-term modifications made in the three months ended September 30 2024 and 2023, unpaid balances of $15 million and $10 million, respectively, were forgiven. For short-term modifications made in the nine months ended September 30, 2024 and 2023, unpaid balances of $216 million and $123 million, respectively, were forgiven. Additionally, beginning in the three months ended September 30, 2024, for borrowers that enroll in our short-term loan modification programs, we no longer charge interest and penalty fees during the term of the program.
Performance of Loans Modified to Borrowers Experiencing Financial Difficulty
The following tables provide information on the performance of loans modified to borrowers experiencing financial difficulty which have been modified within the previous 12 months and remain in a modification program at September 30, 2024. For the comparative period, amounts represent loans that were modified subsequent to January 1, 2023 and remained in a modification program at September 30, 2023:
Amortized cost basis
At September 30, 2024 ($ in millions)Current30-89 days delinquent90 or more days delinquent
Total past due(a)
Long-term modifications
Credit cards$1,002 $178 $132 $310 
Consumer installment loans— — — — 
Commercial credit products3 1 1 2 
Short-term modifications
Credit cards72 38 39 77 
Consumer installment loans— — — — 
Commercial credit products— — — — 
Total delinquent modified loans$1,077 $217 $172 $389 
Percentage of total loan receivables1.1 %0.2 %0.2 %0.4 %
Amortized cost basis
At September 30, 2023 ($ in millions)Current30-89 days delinquent90 or more days delinquent
Total past due(a)
Long-term modifications
Credit cards$655 $150 $118 $268 
Consumer installment loans— — — — 
Commercial credit products2 1 1 2 
Short-term modifications
Credit cards40 28 39 67 
Consumer installment loans— — — — 
Commercial credit products— — — — 
Total delinquent modified loans$697 $179 $158 $337 
Percentage of total loan receivables0.7 %0.2 %0.1 %0.3 %
___________________
(a)    Once a loan has been modified, it only returns to current status (re-aged) after three consecutive monthly program payments are received post the modification date.
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Payment Defaults
The following table presents the type, number and amount of loans to borrowers experiencing financial difficulty that enrolled in a long-term modification program within the previous 12 months from September 30, 2024, or between January 1, 2023 and September 30, 2023 for the comparative period, and experienced a payment default and charged-off during the period presented:
Three months ended September 3020242023
($ in millions, accounts in thousands)Accounts defaultedLoans defaultedAccounts defaultedLoans defaulted
Credit cards43 $116 31 $77 
Consumer installment loans— — — — 
Commercial credit products— 1 — 1 
Total43 $117 31 $78 

Nine months ended September 3020242023
($ in millions, accounts in thousands)Accounts defaultedLoans defaultedAccounts defaultedLoans defaulted
Credit cards96 $259 51 $122 
Consumer installment loans— — — — 
Commercial credit products1 2 — 1 
Total97 $261 51 $123 
Of the loans modified to borrowers experiencing financial difficulty that enrolled in a short-term modification program within the previous 12 months from September 30, 2024, or between January 1, 2023 and September 30, 2023 for the comparative period, 60% and 50% had fully completed all required payments and successfully exited the program during the nine months ended September 30, 2024 and 2023, respectively.
Unfunded Lending Commitments
We manage the potential risk in credit commitments by limiting the total amount of credit, both by individual customer and in total, by monitoring the size and maturity of our portfolios and by applying the same credit standards for all of our credit products. Unused credit card lines available to our customers totaled approximately $432 billion and $427 billion at September 30, 2024 and December 31, 2023, respectively. While these amounts represented the total available unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time.
53

Interest Income by Product
The following table provides additional information about our interest and fees on loans, including merchant discounts, from our loan receivables, including held for sale:
Three months ended September 30,Nine months ended September 30,
($ in millions)2024202320242023
Credit cards(a)
$5,236 $5,003 $15,345 $14,179 
Consumer installment loans238 108 630 285 
Commercial credit products46 38 134 108 
Other2 2 7 7 
Total(b)
$5,522 $5,151 $16,116 $14,579 
_______________________
(a)Interest income on credit cards that was reversed related to accrued interest receivables written off was $551 million and $422 million for the three months ended September 30, 2024 and 2023, respectively, and $1.7 billion and $1.3 billion for the nine months ended September 30, 2024 and 2023, respectively.
(b)Deferred merchant discounts to be recognized in interest income at both September 30, 2024 and December 31, 2023, was $1.9 billion, respectively, which are included in Accrued expenses and other liabilities in our Condensed Consolidated Statement of Financial Position.

54

NOTE 6.    VARIABLE INTEREST ENTITIES
We use VIEs to securitize loan receivables and arrange asset-backed financing in the ordinary course of business. Investors in these entities only have recourse to the assets owned by the entity and not to our general credit. We do not have implicit support arrangements with any VIE and we did not provide non-contractual support for previously transferred loan receivables to any of these VIEs in the three and nine months ended September 30, 2024 and 2023. Our VIEs are able to accept new loan receivables and arrange new asset-backed financings, consistent with the requirements and limitations on such activities placed on the VIE by existing investors. Once an account has been designated to a VIE, the contractual arrangements we have require all existing and future loan receivables originated under such account to be transferred to the VIE. The amount of loan receivables held by our VIEs in excess of the minimum amount required under the asset-backed financing arrangements with investors may be removed by us under removal of accounts provisions. All loan receivables held by a VIE are subject to claims of third-party investors.
In evaluating whether we have the power to direct the activities of a VIE that most significantly impact its economic performance, we consider the purpose for which the VIE was created, the importance of each of the activities in which it is engaged and our decision-making role, if any, in those activities that significantly determine the entity’s economic performance as compared to other economic interest holders. This evaluation requires consideration of all facts and circumstances relevant to decision-making that affects the entity’s future performance and the exercise of professional judgment in deciding which decision-making rights are most important.
In determining whether we have the right to receive benefits or the obligation to absorb losses that could potentially be significant to a VIE, we evaluate all of our economic interests in the entity, regardless of form (debt, equity, management and servicing fees, and other contractual arrangements). This evaluation considers all relevant factors of the entity’s design, including: the entity’s capital structure, contractual rights to earnings or losses, subordination of our interests relative to those of other investors, as well as any other contractual arrangements that might exist that could have the potential to be economically significant. The evaluation of each of these factors in reaching a conclusion about the potential significance of our economic interests is a matter that requires the exercise of professional judgment.
We consolidate VIEs where we have the power to direct the activities that significantly affect the VIEs' economic performance, typically because of our role as either servicer or administrator for the VIEs. The power to direct exists because of our role in the design and conduct of the servicing of the VIEs’ assets as well as directing certain affairs of the VIEs, including determining whether and on what terms debt of the VIEs will be issued.
The loan receivables in these entities have risks and characteristics similar to our other loan receivables and were underwritten to the same standard. Accordingly, the performance of these assets has been similar to our other comparable loan receivables, and the blended performance of the pools of receivables in these entities reflects the eligibility criteria that we apply to determine which receivables are selected for transfer. Contractually, the cash flows from these loan receivables must first be used to pay third-party debt holders, as well as other expenses of the entity. Excess cash flows, if any, are available to us. The creditors of these entities have no claim on our other assets.
55

The table below summarizes the assets and liabilities of our consolidated securitization VIEs described above:
($ in millions)September 30, 2024December 31, 2023
Assets  
Loan receivables, net(a)
$19,246  $19,537 
Other assets(b)
47  47 
Total$19,293  $19,584 
  
Liabilities 
Borrowings$8,015  $7,267 
Other liabilities29  31 
Total$8,044  $7,298 
_______________________
(a)    Includes $1.9 billion and $1.9 billion of related allowance for credit losses resulting in gross restricted loan receivables of $21.2 billion and $21.4 billion at September 30, 2024 and December 31, 2023, respectively.
(b)    Includes $42 million and $45 million of segregated funds held by the VIEs at September 30, 2024 and December 31, 2023, respectively, which are classified as restricted cash and equivalents and included as a component of Other assets in our Condensed Consolidated Statements of Financial Position.
The balances presented above are net of intercompany balances and transactions that are eliminated in our condensed consolidated financial statements.
We provide servicing for all of our consolidated VIEs. Collections are required to be placed into segregated accounts owned by each VIE in amounts that meet contractually specified minimum levels. These segregated funds are invested in cash and cash equivalents and are restricted as to their use, principally to pay maturing principal and interest on debt and the related servicing fees. Collections above these minimum levels are remitted to us on a daily basis.
Income (principally, interest and fees on loans) earned by our consolidated VIEs was $1.2 billion and $1.0 billion, for the three months ended September 30, 2024 and 2023, respectively. Related expenses consisted primarily of provision for credit losses of $331 million and $189 million, for the three months ended September 30, 2024 and 2023, respectively, and interest expense of $108 million and $86 million, for the three months ended September 30, 2024 and 2023, respectively.
Income (principally, interest and fees on loans) earned by our consolidated VIEs was $3.2 billion and $2.9 billion, for the nine months ended September 30, 2024 and 2023, respectively. Related expenses consisted primarily of provision for credit losses of $753 million and $553 million, for the nine months ended September 30, 2024 and 2023, respectively, and interest expense of $323 million and $241 million, for the nine months ended September 30, 2024 and 2023, respectively. These amounts do not include intercompany transactions, principally fees and interest, which are eliminated in our condensed consolidated financial statements.
Non-consolidated VIEs
As part of our community reinvestment initiatives, we invest in funds that invest in affordable housing properties and receive affordable housing tax credits for these investments. These investments included in our Condensed Consolidated Statement of Financial Position totaled $755 million and $736 million at September 30, 2024 and December 31, 2023, respectively, and represents our total exposure for these entities.
For the three months ended September 30, 2024 and 2023, provision for income taxes included amortization expense of $24 million and $21 million, respectively, and tax credits and other tax benefits of $30 million and $25 million, respectively, associated with investments in affordable housing properties. For the nine months ended September 30, 2024 and 2023, provision for income taxes included amortization expense of $71 million and $56 million, respectively, and tax credits and other tax benefits of $86 million and $72 million, respectively, associated with investments in affordable housing properties.
56

Our other investments in non-consolidated VIEs, totaled $282 million and $252 million at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024, the Company also had investment commitments of $197 million related to these investments.
NOTE 7.    GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
($ in millions)
2024
Balance at January 1
$1,018 
Change in amounts allocated to disposition of business(a)
4 
Goodwill recognized upon acquisition252 
Balance at September 30
$1,274 
_____________
(a)    The change in the nine months ended September 30, 2024 was based upon the carrying amount of net assets of Pets Best and the final valuation of consideration received at closing.
Intangible Assets
September 30, 2024December 31, 2023
($ in millions)Gross carrying amountAccumulated amortizationNetGross carrying amountAccumulated amortizationNet
Capitalized software$2,191 $(1,490)$701 $2,065 $(1,302)$763 
Other194 (130)64 204 (152)52 
Total$2,385 $(1,620)$765 $2,269 $(1,454)$815 
During the nine months ended September 30, 2024, we recorded additions to intangible assets subject to amortization of $193 million, primarily related to capitalized software expenditures, as well as intangible assets of $18 million related to the Ally Lending acquisition. See Note 3. Acquisitions and Dispositions for additional information.
Amortization expense was $83 million and $74 million for the three months ended September 30, 2024 and 2023, respectively, and $243 million and $216 million for the nine months ended September 30, 2024 and 2023, respectively, and is included as a component of Other expense in our Condensed Consolidated Statements of Earnings.

57

NOTE 8.    DEPOSITS
September 30, 2024December 31, 2023
($ in millions)Amount
Average rate(a)
Amount
Average rate(a)
Interest-bearing deposits$81,901 4.7 %$80,789 3.9 %
Non-interest-bearing deposits383 — 364 — 
Total deposits$82,284 $81,153 
____________________
(a)Based on interest expense for the nine months ended September 30, 2024 and the year ended December 31, 2023 and average deposits balances.
At September 30, 2024 and December 31, 2023, interest-bearing deposits included $11.0 billion and $10.0 billion, respectively, of certificates of deposit that exceeded applicable FDIC insurance limits, which are generally $250,000 per depositor for each account ownership category. These amounts include partially insured certificates of deposit.
At September 30, 2024, our interest-bearing time deposits maturing for the remainder of 2024 and over the next four years and thereafter were as follows:
($ in millions)20242025202620272028Thereafter
Deposits$6,429 $32,886 $3,032 $2,969 $1,526 $916 
The above maturity table excludes $30.0 billion of demand deposits with no defined maturity, of which $27.9 billion are savings accounts. In addition, at September 30, 2024, we had $4.1 billion of broker network deposit sweeps procured through a program arranger who channels brokerage account deposits to us that are also excluded from the above maturity table. Unless extended, the contracts associated with these broker network deposit sweeps will terminate between 2025 and 2026.
58

NOTE 9.    BORROWINGS
September 30, 2024December 31, 2023
($ in millions)Maturity dateInterest RateWeighted average interest rate
Outstanding Amount(a)(b)
Outstanding Amount(a)(b)
Borrowings of consolidated securitization entities:
Fixed securitized borrowings2025 - 2027
3.37% - 5.74%
4.73 %$4,915 $3,417 
Floating securitized borrowings2024 - 2027
5.81% - 6.07%
5.90 %3,100 3,850 
Total borrowings of consolidated securitization entities5.18 %8,015 7,267 
Senior unsecured notes:
Synchrony Financial senior unsecured notes:
Fixed senior unsecured notes2025 - 2031
2.87% - 5.15%
4.19 %4,635 6,480 
Fixed to floating senior unsecured notes(c)
2030
5.94%
5.94 %745 — 
Synchrony Bank senior unsecured notes:
Fixed senior unsecured notes2025 - 2027
5.40% - 5.63%
5.49 %1,496 1,494 
Total senior unsecured notes4.66 %6,876 7,974 
Subordinated unsecured notes:
Synchrony Financial subordinated unsecured notes:
Fixed subordinated unsecured notes2033
7.25%
7.25 %741 741 
Total senior and subordinated unsecured notes4.91 %7,617 8,715 
Total borrowings$15,632 $15,982 
___________________
(a)Includes unamortized debt premiums, discounts and issuance costs.
(b)The Company may redeem certain borrowings prior to their original contractual maturity dates in accordance with the optional redemption provision specified in the respective instruments
(c)Interest rate fixed through August 1, 2029; resets August 2, 2029 to floating rate based on compounded Secured Overnight Financing Rate ("SOFR") plus 213 basis points.
Debt Maturities
The following table summarizes the maturities of the principal amount of our borrowings of consolidated securitization entities and senior and subordinated unsecured notes for the remainder of 2024 and over the next four years and thereafter:
($ in millions)20242025202620272028Thereafter
Borrowings$175 $5,650 $3,250 $3,700 $— $2,900 
Senior Unsecured Notes
2024 Issuance ($ in millions):
Issuance DatePrincipal AmountMaturityInterest Rate
Fixed to floating rate subordinated unsecured notes:
Synchrony Financial
August 2024$750 August 20305.935%
59

Additional Sources of Liquidity
We have undrawn committed and uncommitted capacity under certain credit facilities, primarily from private lenders under our securitization programs, subject to customary borrowing conditions, and also have access to the Federal Reserve discount window.
At September 30, 2024, we had an aggregate of $2.7 billion of undrawn capacity under our securitization financings, of which $2.2 billion was committed and $450 million was uncommitted. At December 31, 2023, we had an aggregate of $2.5 billion of undrawn capacity under our securitization financings, of which all was committed.
At September 30, 2024 and December 31, 2023, we had an aggregate of $500 million of undrawn committed capacity under our unsecured revolving credit facility with private lenders.
At September 30, 2024 and December 31, 2023, we had an aggregate of $11.4 billion and $10.4 billion, respectively, of available borrowing capacity through the Federal Reserve discount window based on the amount and type of assets pledged.
60

NOTE 10.    FAIR VALUE MEASUREMENTS
For a description of how we estimate fair value, see Note 2. Basis of Presentation and Summary of Significant Accounting Policies in our 2023 annual consolidated financial statements within our 2023 Form 10-K. The following tables present our assets and liabilities measured at fair value on a recurring basis.
Recurring Fair Value Measurements
At September 30, 2024 ($ in millions)Level 1Level 2Level 3
Total(a)
Assets
Debt securities
U.S. government and federal agency $— $819 $— $819 
State and municipal— — 17 17 
Residential mortgage-backed— 316 — 316 
Asset-backed— 1,185 — 1,185 
Other— — 8 8 
Other(b)
15 — 8 23 
Total $15 $2,320 $33 $2,368 
Liabilities
Other(c)
— — 10 10 
Total$— $— $10 $10 
At December 31, 2023 ($ in millions)
Assets
Debt securities
U.S. government and federal agency $— $2,264 $— $2,264 
State and municipal— — 10 10 
Residential mortgage-backed— 354 — 354 
Asset-backed— 1,162 — 1,162 
Other— — 8 8 
Other(b)
14 — 10 24 
Total $14 $3,780 $28 $3,822 
Liabilities
Other(c)
— — $4 $4 
Total$— $— $4 $4 
_______________________
(a)    For the nine months ended September 30, 2024 and 2023, there were no fair value measurements transferred between levels.
(b)    Other is primarily comprised of equity investments measured at fair value, which are included in Other assets in our Condensed Consolidated Statement of Financial Position, as well as certain financial assets for which we have elected the fair value option which are included in Loan receivables in our Condensed Consolidated Statement of Financial Position.
(c)    Other includes certain financial liabilities for which we have elected the fair value option. These liabilities are included in Accrued expenses and other liabilities in our Condensed Consolidated Statement of Financial Position.
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Level 3 Fair Value Measurements
Our Level 3 recurring fair value measurements primarily relate to state and municipal and corporate debt instruments, which are valued using non-binding broker quotes or other third-party sources, and financial assets and liabilities for which we have elected the fair value option. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies and Note 10. Fair Value Measurements in our 2023 annual consolidated financial statements within our 2023 Form 10-K for a description of our process to evaluate third-party pricing servicers. Our state and municipal debt securities are classified as available-for-sale with changes in fair value included in Accumulated other comprehensive income.
The changes in our Level 3 assets and liabilities that are measured on a recurring basis for the three and nine months ended September 30, 2024 and 2023, respectively, were not material.

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Financial Assets and Financial Liabilities Carried at Other Than Fair Value
CarryingCorresponding fair value amount
At September 30, 2024 ($ in millions)valueTotalLevel 1Level 2Level 3
Financial Assets
Financial assets for which carrying values equal or approximate fair value:
Cash and equivalents(a)
$17,934 $17,934 $17,934 $— $— 
Other assets(a)(b)
$47 $47 $47 $— $— 
Financial assets carried at other than fair value:
Loan receivables, net(c)
$91,156 $104,113 $— $— $104,113 
Financial Liabilities
Financial liabilities carried at other than fair value:
Deposits$82,284 $82,493 $— $82,493 $— 
Borrowings of consolidated securitization entities$8,015 $8,065 $— $4,968 $3,097 
Senior and subordinated unsecured notes$7,617 $7,558 $— $7,558 $— 
CarryingCorresponding fair value amount
At December 31, 2023 ($ in millions)valueTotalLevel 1Level 2Level 3
Financial Assets
Financial assets for which carrying values equal or approximate fair value:
Cash and equivalents(a)
$14,259 $14,259 $14,259 $— $— 
Other assets(a)(b)
$50 $50 $50 $— $— 
Assets held for sale(d)
$112 $112 $112 $— $— 
Financial assets carried at other than fair value:
Loan receivables, net(c)
$92,407 $104,761 $— $— $104,761 
Financial Liabilities
Financial liabilities carried at other than fair value:
Deposits$81,153 $80,935 $— $80,935 $— 
Borrowings of consolidated securitization entities$7,267 $7,250 $— $3,411 $3,839 
Senior and subordinated unsecured notes$8,715 $8,423 $— $8,423 $— 
_______________________
(a)    For cash and equivalents and restricted cash and equivalents, carrying value approximates fair value due to the liquid nature and short maturity of these instruments.
(b)    This balance relates to restricted cash and equivalents, which is included in Other assets.
(c)    Excludes financial assets for which we have elected the fair value option. Under certain retail partner program agreements, the expected sales proceeds in the event of a sale of their credit card portfolio may be limited to the amounts owed by our customers, which may be less than the fair value indicated above.
(d)    Includes $19 million of cash and equivalents and $93 million of restricted cash and equivalents.

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Equity Securities Without Readily Determinable Fair Values
Three months endedNine months ended
At or for the periods ended September 30
($ in millions)
2024202320242023
Carrying value(a)
$270 $268 $270 $268 
Upward adjustments(b)
— 17 — 17 
Downward adjustments(b)
(5)(5)(7)(6)
_______________________
(a)    Carrying value reflects cumulative purchases and sales in addition to upward and downward carrying value changes, and at December 31, 2023 was $270 million.
(b)    Between January 1, 2018 and September 30, 2024, cumulative upward and downward carrying value adjustments were $205 million and $(21) million, respectively.
NOTE 11.    REGULATORY AND CAPITAL ADEQUACY
As a savings and loan holding company and a financial holding company, we are subject to regulation, supervision and examination by the Federal Reserve Board and subject to the capital requirements as prescribed by Basel III capital rules and the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Bank is a federally chartered savings association. As such, the Bank is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency of the U.S. Treasury (the “OCC”), which is its primary regulator, and by the Consumer Financial Protection Bureau (“CFPB”). In addition, the Bank, as an insured depository institution, is supervised by the FDIC.
Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could limit our business activities and have a material adverse effect on our consolidated financial statements. Under capital adequacy guidelines, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
Quantitative measures established by regulation to ensure capital adequacy require us and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined).
For Synchrony Financial to be a well-capitalized savings and loan holding company, the Bank must be well-capitalized and Synchrony Financial must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve Board to meet and maintain a specific capital level for any capital measure.
The Company elected to adopt the option provided by the interim final rule issued by joint federal bank regulatory agencies, which largely delayed the effects of CECL on its regulatory capital. Beginning in the first quarter of 2022, the effects are being phased-in over a three-year period through 2024 and will be fully phased-in beginning in the first quarter of 2025. Under the interim final rule, the amount of adjustments to regulatory capital deferred until the phase-in period included both the initial impact of our adoption of CECL at January 1, 2020 and 25% of subsequent changes in our allowance for credit losses during the two-year period ended December 31, 2021, collectively the “CECL regulatory capital transition adjustment”. Beginning in the first quarter of 2024 only 25% of the CECL regulatory capital transition adjustment is deferred in our regulatory capital amounts and ratios, as compared to 50% at December 31, 2023.
At September 30, 2024 and December 31, 2023, Synchrony Financial met all applicable requirements to be deemed well-capitalized pursuant to Federal Reserve Board regulations. At September 30, 2024 and December 31, 2023, the Bank also met all applicable requirements to be deemed well-capitalized pursuant to OCC regulations and for purposes of the Federal Deposit Insurance Act. There are no conditions or events subsequent to September 30, 2024 that management believes have changed the Company's or the Bank’s capital category.
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The actual capital amounts, ratios and the applicable required minimums of the Company and the Bank are as follows:
Synchrony Financial
At September 30, 2024 ($ in millions)ActualMinimum for capital
adequacy purposes
Amount
Ratio(a)
Amount
Ratio(b)
Total risk-based capital$16,864 16.4 %$8,248 8.0 %
Tier 1 risk-based capital$14,723 14.3 %$6,186 6.0 %
Tier 1 leverage$14,723 12.5 %$4,726 4.0 %
Common equity Tier 1 Capital$13,501 13.1 %$4,640 4.5 %
At December 31, 2023 ($ in millions)ActualMinimum for capital
adequacy purposes
Amount
Ratio(a)
Amount
Ratio(b)
Total risk-based capital$15,464 14.9 %$8,277 8.0 %
Tier 1 risk-based capital$13,334 12.9 %$6,208 6.0 %
Tier 1 leverage$13,334 11.7 %$4,563 4.0 %
Common equity Tier 1 Capital$12,600 12.2 %$4,656 4.5 %
Synchrony Bank
At September 30, 2024 ($ in millions)ActualMinimum for capital
adequacy purposes		Minimum to be well-capitalized under prompt corrective action provisions
Amount
Ratio(a)
Amount
Ratio(b)
AmountRatio
Total risk-based capital$15,583 15.9 %$7,852 8.0 %$9,815 10.0 %
Tier 1 risk-based capital$13,499 13.8 %$5,889 6.0 %$7,852 8.0 %
Tier 1 leverage$13,499 12.1 %$4,469 4.0 %$5,586 5.0 %
Common equity Tier I capital$13,499 13.8 %$4,417 4.5 %$6,380 6.5 %
At December 31, 2023 ($ in millions)ActualMinimum for capital
adequacy purposes		Minimum to be well-capitalized under prompt corrective action provisions
Amount
Ratio(a)
Amount
Ratio(b)
AmountRatio
Total risk-based capital$14,943 15.3 %$7,822 8.0 %$9,778 10.0 %
Tier 1 risk-based capital$12,880 13.2 %$5,867 6.0 %$7,822 8.0 %
Tier 1 leverage$12,880 12.0 %$4,302 4.0 %$5,377 5.0 %
Common equity Tier I capital$12,880 13.2 %$4,400 4.5 %$6,356 6.5 %
_______________________
(a)Capital ratios are calculated based on the Basel III Standardized Approach rules. Capital amounts and ratios at September 30, 2024 and at December 31, 2023 in the above tables reflect the applicable CECL regulatory capital transition adjustment.
(b)At September 30, 2024 and at December 31, 2023, Synchrony Financial and the Bank also must maintain a capital conservation buffer of common equity Tier 1 capital in excess of minimum risk-based capital ratios by at least 2.5 percentage points to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees.
The Bank may pay dividends on its stock, with consent or non-objection from the OCC and the Federal Reserve Board, among other things, if its regulatory capital would not thereby be reduced below the applicable regulatory capital requirements.
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NOTE 12.    EARNINGS PER SHARE
Basic earnings per share is computed by dividing earnings available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all dilutive securities, which are calculated using the treasury stock method.
The following table presents the calculation of basic and diluted earnings per common share:
Three months ended September 30,Nine months ended September 30,
(in millions, except per share data)2024202320242023
Net earnings$789 $628 $2,725 $1,798 
Preferred stock dividends(21)(10)$(51)$(31)
Net earnings available to common stockholders$768 $618 $2,674 $1,767 
Weighted average common shares outstanding, basic392.3 416.0 398.7 $424.3 
Effect of dilutive securities4.2 2.4 3.7 $2.2 
Weighted average common shares outstanding, dilutive396.5 418.4 $402.4 $426.5 
Earnings per basic common share$1.96 $1.49 $6.71 $4.16 
Earnings per diluted common share$1.94 $1.48 $6.65 $4.14 
We have issued certain stock-based awards under both the Synchrony Financial 2014 and 2024 Long-Term Incentive Plans. A total of zero shares and 3 million shares for the three months ended September 30, 2024 and 2023, respectively, and 1 million and 5 million shares for the nine months ended September 30, 2024 and 2023, respectively, related to these awards, were considered anti-dilutive and therefore were excluded from the computation of diluted earnings per common share.
NOTE 13.    EQUITY AND OTHER STOCK RELATED INFORMATION
Preferred Stock
The following table summarizes the Company's preferred stock issued and outstanding at September 30, 2024 and December 31, 2023.
SeriesIssuance DateRedeemable by Issuer BeginningPer Annum Dividend RateLiquidation Preference per ShareTotal Shares OutstandingSeptember 30, 2024December 31, 2023
($ in millions, except per share data)
Series A(a)
November 14, 2019November 15, 20245.625%$1,000750,000$734 $734 
Series B(a)
February 23, 2024May 15, 2029
8.25%(b)
$1,000500,000$488 $— 
$1,222 $734 
_______________________
(a)Issued as depositary shares, each representing a 1/40th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15 and November 15 of each calendar year at a fixed rate, in each case when, as and if declared by the Board of Directors.
(b)Through May 14, 2029; resets May 15, 2029 and each date falling on the fifth anniversary at 5-Year Treasury Rate plus 4.044%.
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NOTE 14.    INCOME TAXES
Unrecognized Tax Benefits
($ in millions)September 30, 2024December 31, 2023
Unrecognized tax benefits, excluding related interest expense and penalties(a)
$232  $230 
Portion that, if recognized, would reduce tax expense and effective tax rate(b)
$183 $182 
____________________
(a)Interest and penalties related to unrecognized tax benefits were not material for all periods presented.
(b)Comprised of federal unrecognized tax benefits and state and local unrecognized tax benefits net of the effects of associated U.S. federal income taxes. Excludes amounts attributable to any related valuation allowances resulting from associated increases in deferred tax assets.
We establish a liability that represents the difference between a tax position taken (or expected to be taken) on an income tax return and the amount of taxes recognized in our financial statements. The liability associated with the unrecognized tax benefits is adjusted periodically when new information becomes available. The amount of unrecognized tax benefits that is reasonably possible to be resolved in the next twelve months is expected to be $35 million, of which $28 million, if recognized, would reduce the Company's tax expense and effective tax rate.
In the current year, the Company executed a Memorandum of Understanding with the IRS to participate voluntarily in the IRS Compliance Assurance Process (“CAP”) program for the 2024 tax year, and thus the tax year is under IRS review. The IRS is also examining our 2023 tax year, and we expect the review will be completed in the current year. Additionally, we are under examination in various states going back to 2014.
We believe that there are no issues or claims that are likely to significantly impact our results of operations, financial position or cash flows. We further believe that we have made adequate provision for all income tax uncertainties that could result from such examinations.
NOTE 15.    LEGAL PROCEEDINGS AND REGULATORY MATTERS
In the normal course of business, from time to time, we have been named as a defendant in various legal proceedings, including arbitrations, class actions and other litigation, arising in connection with our business activities. Certain of the legal actions include claims for substantial compensatory and/or punitive damages, or claims for indeterminate amounts of damages. We are also involved, from time to time, in reviews, investigations and proceedings (both formal and informal) by governmental agencies regarding our business (collectively, “regulatory matters”), which could subject us to significant fines, penalties, obligations to change our business practices or other requirements resulting in increased expenses, diminished income and damage to our reputation. We contest liability and/or the amount of damages as appropriate in each pending matter. In accordance with applicable accounting guidance, we establish an accrued liability for legal and regulatory matters when those matters present loss contingencies which are both probable and reasonably estimable.
Legal proceedings and regulatory matters are subject to many uncertain factors that generally cannot be predicted with assurance, and we may be exposed to losses in excess of any amounts accrued.
For some matters, we are able to determine that an estimated loss, while not probable, is reasonably possible. For other matters, including those that have not yet progressed through discovery and/or where important factual information and legal issues are unresolved, we are unable to make such an estimate. We currently estimate that the reasonably possible losses for legal proceedings and regulatory matters, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a possible loss, are immaterial. This represents management’s estimate of possible loss with respect to these matters and is based on currently available information. This estimate of possible loss does not represent our potential maximum loss exposure. The legal proceedings and regulatory matters underlying the estimate will change from time to time and actual results may vary significantly from current estimates.
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Our estimate of reasonably possible losses involves significant judgment, given the varying stages of the proceedings, the existence of numerous yet to be resolved issues, the breadth of the claims (often spanning multiple years), unspecified damages and/or the novelty of the legal issues presented. Based on our current knowledge, we do not believe that we are a party to any pending legal proceeding or regulatory matters that would have a material adverse effect on our condensed consolidated financial condition or liquidity. However, in light of the uncertainties involved in such matters, the ultimate outcome of a particular matter could be material to our operating results for a particular period depending on, among other factors, the size of the loss or liability imposed and the level of our earnings for that period, and could adversely affect our business and reputation.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk refers to the risk that a change in the level of one or more market prices, rates, indices, correlations or other market factors will result in losses for a position or portfolio. We are exposed to market risk primarily from changes in interest rates.
We borrow money from a variety of depositors and institutions in order to provide loans to our customers. Changes in market interest rates cause our net interest income to increase or decrease, as some of our assets and liabilities carry interest rates that fluctuate with market benchmarks. The interest rate benchmark for our floating rate assets is generally the prime rate, and the interest rate benchmark for our floating rate liabilities is generally either the Secured Overnight Financing Rate ("SOFR"), U.S. Treasury bills, or the federal funds rate. The prime rate and the SOFR, U.S. Treasury bills or federal funds rate could reset at different times or could diverge, leading to mismatches in the interest rates on our floating rate assets and floating rate liabilities.
The following table presents the approximate net interest income impacts forecasted over the next twelve months from an immediate and parallel change in interest rates affecting all interest rate sensitive assets and liabilities at September 30, 2024.
Basis Point ChangeAt September 30, 2024
($ in millions)
-100 basis points$(223)
+100 basis points$72 
For a more detailed discussion of our exposure to market risk, refer to “Management's Discussion and Analysis—Quantitative and Qualitative Disclosures about Market Risk” in our 2023 Form 10-K.
ITEM 4. CONTROLS AND PROCEDURES
Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), and based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2024.

No change in internal control over financial reporting occurred during the fiscal quarter ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
For a description of legal proceedings, see Note 15. Legal Proceedings and Regulatory Matters to our condensed consolidated financial statements in Part 1, Item 1 of this Quarterly Report on Form 10-Q.
ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors included in our 2023 Form 10-K under the heading “Risk Factors Relating to Our Business” and “Risk Factors Relating to Regulation”.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The table below sets forth information regarding purchases of our common stock primarily related to our share repurchase program that were made by us or on our behalf during the three months ended September 30, 2024.
($ in millions, except per share data)
Total Number of Shares Purchased(a)
Average Price Paid Per Share(b)
Total Number of Shares
Purchased as
Part of Publicly Announced Programs
Maximum Dollar Value of Shares That May Yet Be Purchased Under the Programs(b)(c)
July 1 - 31, 2024
35,424 $48.74 — $1,000.0 
August 1 - 31, 2024
5,001,194 45.41 5,000,000 773.0 
September 1 - 30, 2024
1,607,751 45.41 1,606,512 700.0 
Total 6,644,369 $45.43 6,606,512 $700.0 
_______________________
(a)Includes 35,424 shares, 1,194 shares and 1,239 shares withheld in July, August and September, respectively, to offset tax withholding obligations that occur upon the delivery of outstanding shares underlying performance stock awards, restricted stock awards or upon the exercise of stock options.
(b)Amounts exclude commission costs.
(c)In April 2024 the Board of Directors approved an incremental share repurchase program of up to $1.0 billion through June 30, 2025.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.

ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.


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ITEM 5. OTHER INFORMATION
Trading Plans
On July 19, 2024, Jonathan S. Mothner, Executive Vice President, Chief Risk and Legal Officer, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). Mr. Mothner’s plan covers the sale of an aggregate amount of 34,163 of the Company’s securities, and will terminate on July 21, 2025, or an earlier date under certain circumstances specified under the terms of the plan, including if all trades are executed or all orders related to the trades under the plan expire. During the three months ended September 30, 2024, no other director or officer of the Company adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each such term is defined in Item 408(a) of Regulation S-K.
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ITEM 6. EXHIBITS
EXHIBIT INDEX

Exhibit NumberDescription
101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
104The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in Inline XBRL (included as Exhibit 101)
______________________ 
*Filed electronically herewith.


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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Synchrony Financial
(Registrant)

October 23, 2024/s/ Brian J. Wenzel Sr.
Date Brian J. Wenzel Sr.
Executive Vice President and Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)

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