For the preferred stock (BFH-PA), the improving credit trends are a modest positive for credit coverage, but the filing is a routine monthly update with no material change to the issuer's credit profile. Monitor the next quarterly earnings for FFO and leverage trends to assess the sustainability of credit improvement.
Price Chart
Executive Summary
Bread Financial provided an April 2026 monthly credit performance update. Net principal loss rate improved to 7.09% from 7.85% a year ago, and the 30+ day delinquency rate fell to 5.34% from 5.73%. Average loan balances grew 2.0% year-over-year, a positive reversal from last year's decline. For the preferred stock (BFH-PA), the improving credit metrics are a modest credit positive, signaling better coverage for the fixed dividend.
Key Facts
- Net principal loss rate for April 2026: 7.09%, down from 7.85% in April 2025
- 30+ day delinquency rate: 5.34%, down from 5.73% year-over-year
- Average credit card and other loans grew 2.0% YoY to $18.067 billion (vs. -1.6% YoY in April 2025)
- Net principal losses fell to $105 million from $114 million a year ago
- End-of-period credit card and other loans: $18.123 billion vs. $17.721 billion in April 2025
Financial Impact
Improvement in net principal loss rate by 76 bps YoY and delinquency rate by 39 bps YoY; loan growth of 2.0% YoY
Risk Factors
- The improvement in net principal losses was partially aided by a one-time delinquency freeze in Q4 2024 from hurricanes, which negatively impacted Q2 2025 loss rates — the reported improvement may partially reverse
- Macroeconomic headwinds (inflation, interest rates, consumer debt levels) could pressure credit performance in coming months
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001101215-26-000055 |
| Document: bfh-20260515.htm | 0001101215-26-000055 |
| Document: 0001101215-26-000055-index-headers.html | 0001101215-26-000055 |
| Document: 0001101215-26-000055-index.html | 0001101215-26-000055 |
| Document: 0001101215-26-000055.txt | 0001101215-26-000055 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 424B5 | $101.09 | awaiting T+5 | — | $102.61 (+1.50%) |
Oct 27, 2026 today | 8-K | $102.70 | awaiting T+5 | — | $102.61 (−0.09%) |
Oct 27, 2026 today | Press Release | $101.89 | awaiting T+5 | — | $102.61 (−0.71%) |
Oct 22, 2026 5d ago | 8-K | $102.45 | awaiting T+5 | — | $102.61 (+0.16%) |
Oct 22, 2026 5d ago | 8-K | $102.45 | awaiting T+5 | — | $102.61 (+0.16%) |
Oct 6, 2026 21d ago | Press Release | $97.80 | awaiting T+5 | — | $102.61 (+4.92%) |
Sep 15, 2026 6w ago | 8-K | $107.65 $108.53 | ▲ +0.82% | · 0.00% | $102.61 (−4.68%) |
Aug 17, 2026 10w ago | 8-K | $111.25 $105.19 | ▼ −5.45% | ▼ −4.26% | $102.61 (−7.77%) |
Aug 14, 2026 10w ago | Institutional Cluster | $111.25 $105.19 | ▼ −5.45% | ▼ −4.26% | $102.61 (−7.77%) |
Jul 23, 2026 13w ago | 8-K | $103.58 $110.62 | ▲ +6.80% | ▲ +6.32% | $102.61 (−0.94%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers