Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-36771 | ||
Entity Registrant Name | LendingClub Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0605731 | ||
Entity Address, Address Line One | 595 Market Street, Suite 200, | ||
Entity Address, City or Town | San Francisco, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94105 | ||
City Area Code | 415 | ||
Local Phone Number | 632-5600 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | LC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement for the Registrant’s 2021 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2020. | ||
Entity Central Index Key | 0001409970 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (shares) | 93,550,219 | ||
Entity Public Float | $ 278,428,673 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and cash equivalents | $ 524,963 | $ 243,779 | |
Restricted cash | [1] | 103,522 | 243,343 |
Securities available for sale at fair value | 142,226 | 270,927 | |
Loans held for investment at fair value | [1] | 636,686 | 1,079,315 |
Loans held for investment by the Company at fair value | [1] | 49,954 | 43,693 |
Loans held for sale by the Company at fair value | [1] | 121,902 | 722,355 |
Accrued interest receivable | [1] | 5,205 | 12,857 |
Property, equipment and software, net | 96,641 | 114,370 | |
Operating lease assets | 74,037 | 93,485 | |
Intangible assets, net | 11,427 | 14,549 | |
Other assets | [1] | 96,730 | 143,668 |
Total assets | 1,863,293 | 2,982,341 | |
Liabilities and Equity | |||
Accounts payable | 3,698 | 10,855 | |
Accrued interest payable | [1] | 4,572 | 9,260 |
Operating lease liabilities | 94,538 | 112,344 | |
Accrued expenses and other liabilities | [1] | 101,457 | 142,636 |
Payable to investors | 40,286 | 97,530 | |
Notes, certificates and secured borrowings at fair value | [1] | 636,774 | 1,081,466 |
Payable to Structured Program note and certificate holders | [1] | 152,808 | 40,610 |
Credit facilities and securities sold under repurchase agreements | [1] | 104,989 | 587,453 |
Total liabilities | 1,139,122 | 2,082,154 | |
Equity | |||
Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 43,000 and 0 shares issued and outstanding, respectively | 0 | 0 | |
Common stock, $0.01 par value; 180,000,000 shares authorized; 88,149,510 and 89,218,797 shares issued, respectively; 88,149,510 and 88,757,406 shares outstanding, respectively | 881 | 892 | |
Additional paid-in capital | 1,508,020 | 1,467,882 | |
Accumulated deficit | (786,214) | (548,472) | |
Treasury stock, at cost; 0 and 461,391 shares, respectively | 0 | (19,550) | |
Accumulated other comprehensive income (loss) | 1,484 | (565) | |
Total equity | 724,171 | 900,187 | |
Total liabilities and equity | $ 1,863,293 | $ 2,982,341 | |
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted cash | [1] | $ 103,522 | $ 243,343 |
Loans held for investment at fair value | [1] | 636,686 | 1,079,315 |
Loans held for investment by the Company at fair value | [1] | 49,954 | 43,693 |
Loans held for sale by the Company at fair value | [1] | 121,902 | 722,355 |
Accrued interest receivable | [1] | 5,205 | 12,857 |
Other assets | [1] | 96,730 | 143,668 |
Total assets | 1,863,293 | 2,982,341 | |
Accrued interest payable | [1] | 4,572 | 9,260 |
Accrued expenses and other liabilities | [1] | 101,457 | 142,636 |
Notes, certificates and secured borrowings at fair value | [1] | 636,774 | 1,081,466 |
Payable to Structured Program note and certificate holders | [1] | 152,808 | 40,610 |
Credit facilities and securities sold under repurchase agreements | [1] | 104,989 | 587,453 |
Total liabilities | $ 1,139,122 | $ 2,082,154 | |
Common stock, par value ($ per share) | $ 0.01 | ||
Common stock, shares authorized (shares) | 180,000,000 | ||
Common stock, shares issued (shares) | 88,149,510 | 89,218,797 | |
Common stock, shares outstanding (shares) | 88,149,510 | 88,757,406 | |
Treasury stock (shares) | 0 | 461,391 | |
Preferred stock, par value ($ per share) | $ 0.01 | ||
Preferred stock, authorized (shares) | 10,000,000 | ||
Series A Preferred Stock | |||
Preferred stock, issued (shares) | 43,000 | 0 | |
Preferred stock, par value ($ per share) | $ 0.01 | $ 0.01 | |
Preferred stock, authorized (shares) | 1,200,000 | 1,200,000 | |
Consolidated VIEs | |||
Restricted cash | $ 15,983 | $ 30,046 | |
Loans held for investment at fair value | 52,620 | 197,842 | |
Loans held for investment by the Company at fair value | 50,102 | 40,251 | |
Loans held for sale by the Company at fair value | 98,190 | 551,455 | |
Accrued interest receivable | 1,134 | 4,431 | |
Other assets | 136 | 1,359 | |
Total assets | 218,165 | 825,384 | |
Accrued interest payable | 721 | 3,185 | |
Accrued expenses and other liabilities | 8 | 244 | |
Notes, certificates and secured borrowings at fair value | 52,620 | 197,842 | |
Payable to Structured Program note and certificate holders | 152,808 | 40,610 | |
Credit facilities and securities sold under repurchase agreements | 0 | 387,251 | |
Total liabilities | $ 206,157 | $ 629,132 | |
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Net revenue: | ||||
Interest income | $ 209,694 | $ 345,345 | $ 487,462 | |
Interest expense | (141,503) | (246,587) | (385,605) | |
Net fair value adjustments | (117,247) | (144,990) | (100,688) | |
Net interest income and fair value adjustments | (49,056) | (46,232) | 1,169 | |
Gain on sales of loans | 30,812 | 67,716 | 45,979 | |
Net investor revenue | 93,620 | 146,016 | 162,031 | |
Other revenue | 13,442 | 13,831 | 5,839 | |
Total net revenue | 314,702 | 758,607 | 694,812 | |
Operating expenses: | ||||
Sales and marketing | 79,055 | 279,423 | 268,517 | |
Origination and servicing | 71,193 | 103,403 | 99,376 | |
Engineering and product development | 139,050 | 168,380 | 155,255 | |
Other general and administrative | 213,021 | 238,292 | 228,641 | |
Goodwill impairment | 0 | 0 | 35,633 | |
Class action and regulatory litigation expense | 0 | 0 | 35,500 | |
Total operating expenses | 502,319 | 789,498 | 822,922 | |
Loss before income tax expense (benefit) | (187,617) | (30,891) | (128,110) | |
Income tax expense (benefit) | (79) | (201) | 43 | |
Consolidated net loss | (187,538) | (30,690) | (128,153) | |
Less: Income attributable to noncontrolling interests | 0 | 55 | 155 | |
LendingClub net loss | (187,538) | |||
Common Stock | ||||
Operating expenses: | ||||
LendingClub net loss | $ (154,664) | $ (30,745) | $ (128,308) | |
Net loss per share attributable to common stockholders - Basic and Diluted (in USD per share) | [1] | $ (2.63) | $ (0.35) | $ (1.52) |
Weighted-average common shares - Basic and Diluted (in shares) | [1] | 77,934,302 | 87,278,596 | 84,583,461 |
Preferred Stock | ||||
Operating expenses: | ||||
LendingClub net loss | $ (32,874) | |||
Net loss per share attributable to common stockholders - Basic and Diluted (in USD per share) | [1] | $ 1.39 | $ 0 | $ 0 |
Weighted-average common shares - Basic and Diluted (in shares) | [1] | 12,505,393 | 0 | 0 |
Transaction fees | ||||
Net revenue: | ||||
Net revenue, fees | $ 207,640 | $ 598,760 | $ 526,942 | |
Investor fees | ||||
Net revenue: | ||||
Net revenue, fees | $ 111,864 | $ 124,532 | $ 114,883 | |
[1] | See “ Notes to Consolidated Financial Statements – Note 4. Net Income (Loss) Per Share ” and “ Note 15. Stockholders' Equity ” for additional information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
LendingClub net loss | $ (187,538) | ||
Other comprehensive income (loss), before tax: | |||
Net unrealized gain (loss) on securities available for sale | 2,044 | $ (526) | $ 252 |
Other comprehensive income (loss), before tax | 2,044 | (526) | 252 |
Income tax effect | (5) | 216 | 83 |
Other comprehensive income (loss), net of tax | 2,049 | (742) | 169 |
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 0 | (20) | 7 |
LendingClub other comprehensive income (loss), net of tax | 2,049 | (722) | 162 |
LendingClub comprehensive income (loss) | (185,489) | (31,467) | (128,146) |
Comprehensive income (loss) attributable to noncontrolling interests | 0 | (20) | 7 |
Total comprehensive income (loss) | $ (185,489) | $ (31,487) | $ (128,139) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total LendingClub Stockholders’ Equity | Noncontrolling Interests | |||
Beginning balances (in shares) at Dec. 31, 2017 | 0 | 83,494,769 | 456,540 | |||||||||
Beginning balances at Dec. 31, 2017 | $ 927,757 | $ 0 | $ 840 | $ 1,330,564 | $ (19,485) | $ (5) | $ (389,419) | $ 922,495 | $ 5,262 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock-based compensation | 84,150 | 84,150 | 84,150 | |||||||||
Net issuances under equity incentive plans, net of tax (in shares) | 2,071,518 | |||||||||||
Net issuances under equity incentive plans, net of tax | (14,531) | $ 21 | (14,552) | (14,531) | ||||||||
ESPP purchase shares (in shares) | 361,840 | |||||||||||
ESPP purchase shares | 5,233 | $ 3 | 5,230 | 5,233 | ||||||||
Net unrealized gain on securities available for sale, net of tax | 169 | 162 | 162 | 7 | ||||||||
Dividends paid and return of capital to noncontrolling interests | (3,644) | (3,644) | ||||||||||
Consolidated net loss | (128,153) | (128,308) | (128,308) | 155 | ||||||||
Ending balances (in shares) at Dec. 31, 2018 | 0 | 85,928,127 | 456,540 | |||||||||
Ending balances at Dec. 31, 2018 | 870,981 | $ 0 | $ 864 | 1,405,392 | $ (19,485) | 157 | (517,727) | 869,201 | 1,780 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock-based compensation | 79,944 | 79,944 | 79,944 | |||||||||
Net issuances under equity incentive plans, net of tax (in shares) | [1] | 2,665,309 | 4,851 | |||||||||
Net issuances under equity incentive plans, net of tax | [1] | (19,903) | $ 26 | (19,864) | $ (65) | (19,903) | ||||||
ESPP purchase shares (in shares) | 163,970 | |||||||||||
ESPP purchase shares | 2,412 | $ 2 | 2,410 | 2,412 | ||||||||
Net unrealized gain on securities available for sale, net of tax | (742) | (722) | (722) | (20) | ||||||||
Dividends paid and return of capital to noncontrolling interests | (1,815) | (1,815) | ||||||||||
Consolidated net loss | (30,690) | (30,745) | (30,745) | 55 | ||||||||
Ending balances (in shares) at Dec. 31, 2019 | 0 | 88,757,406 | 461,391 | |||||||||
Ending balances at Dec. 31, 2019 | 900,187 | $ 0 | $ 892 | 1,467,882 | $ (19,550) | (565) | (548,472) | 900,187 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock-based compensation | $ 66,626 | 66,626 | 66,626 | |||||||||
Net issuances under equity incentive plans, net of tax (in shares) | 150,473 | 3,692,185 | [2] | 5,658 | [2] | |||||||
Net issuances under equity incentive plans, net of tax | [2] | $ (6,949) | $ 36 | (6,914) | $ (71) | (6,949) | ||||||
Net unrealized gain on securities available for sale, net of tax | 2,049 | 2,049 | 2,049 | 0 | ||||||||
Net issuances of preferred stock in exchange for common stock (in shares) | [3] | 43,000 | (4,300,081) | |||||||||
Net issuances of preferred stock in exchange for common stock | [3] | (50,204) | $ 0 | $ (43) | 43 | (50,204) | (50,204) | |||||
Retirement of treasury stock | $ (4) | (19,617) | $ 19,621 | |||||||||
Retirement of treasury stock (in shares) | (467,049) | |||||||||||
Consolidated net loss | (187,538) | (187,538) | (187,538) | 0 | ||||||||
Ending balances (in shares) at Dec. 31, 2020 | 43,000 | 88,149,510 | 0 | |||||||||
Ending balances at Dec. 31, 2020 | $ 724,171 | $ 0 | $ 881 | $ 1,508,020 | $ 0 | $ 1,484 | $ (786,214) | $ 724,171 | $ 0 | |||
[1] | Includes shares purchased by the Company in lieu of issuing fractional shares in connection with a 1-for-5 reverse stock split effective on July 5, 2019 and shares that were transferred to the Company to satisfy payment of all or a portion of the exercise price in connection with the exercise of stock options. | |||||||||||
[2] | Includes shares that were transferred to the Company to satisfy payment of all or a portion of the exercise price in connection with the exercise of stock options. | |||||||||||
[3] | Includes a payment of $50.2 million that was recorded as a deemed dividend within accumulated deficit related to the beneficial conversion feature of the Series A Preferred Stock issued on March 20, 2020, which would convert into common stock upon a sale by the preferred stockholder to a third party. See “ Note 15. Stockholders' Equity ” for additional information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities: | |||
Consolidated net loss | $ (187,538) | $ (30,690) | $ (128,153) |
Adjustments to reconcile consolidated net loss to net cash used for operating activities: | |||
Net fair value adjustments | 117,247 | 144,990 | 100,688 |
Change in fair value of loan servicing assets and liabilities | 58,730 | 58,095 | 30,482 |
Stock-based compensation, net | 61,533 | 73,639 | 75,087 |
Goodwill impairment charge | 0 | 0 | 35,633 |
Depreciation and amortization | 54,029 | 59,152 | 54,764 |
Gain on sales of loans | (30,812) | (67,716) | (50,421) |
Other, net | 8,922 | 7,483 | 5,471 |
Purchase of loans held for sale | (2,779,493) | (7,643,996) | (7,397,886) |
Principal payments received on loans held for sale | 233,310 | 265,820 | 210,831 |
Proceeds from whole loan sales and Structured Program transactions, net of underwriting fees and costs | 2,981,428 | 6,937,984 | 6,485,432 |
Net change in operating assets and liabilities: | |||
Accrued interest receivable, net | (5,048) | (16,298) | (3,785) |
Other assets | 19,728 | 6,609 | 52,708 |
Accounts payable | (6,922) | 4,158 | (3,005) |
Accrued interest payable | (4,688) | (9,843) | (13,372) |
Accrued expenses and other liabilities | (41,824) | 326 | (93,424) |
Payable to investors | (60,571) | (60,357) | (791) |
Net cash provided by (used for) operating activities | 418,031 | (270,644) | (639,741) |
Cash Flows from Investing Activities: | |||
Purchase of loans | (315,135) | (633,632) | (960,881) |
Principal payments received on loans held for sale | 691,536 | 1,191,428 | 1,763,348 |
Proceeds from recoveries and sales of charged-off loans | 42,178 | 54,032 | 63,240 |
Purchases of securities available for sale | (53,736) | (144,481) | (136,445) |
Proceeds from sales, maturities, redemptions and paydowns of securities available for sale | 99,630 | 145,880 | 153,468 |
Proceeds from paydowns of asset-backed securities related to Structured Program transactions | 132,045 | 90,648 | 47,235 |
Purchases of property, equipment and software, net | (31,147) | (50,668) | (52,976) |
Other investing activities | 400 | 561 | 1,747 |
Net cash provided by investing activities | 565,771 | 653,768 | 878,736 |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of notes and certificates | 314,995 | 632,962 | 953,904 |
Repayments of secured borrowings | (16,867) | (56,884) | (139,206) |
Principal payments on and retirements of notes and certificates | (671,359) | (1,147,297) | (1,615,800) |
Payments on notes and certificates from recoveries/sales of related charged-off loans | (41,179) | (55,022) | (62,494) |
Principal payments on securitization notes | (73,710) | (58,025) | (45,709) |
Proceeds from issuance of securitization notes and certificates | 186,190 | 42,500 | 258,767 |
Proceeds from credit facilities and securities sold under repurchase agreements | 1,195,261 | 2,943,948 | 2,125,488 |
Principal payments on credit facilities and securities sold under repurchase agreements | (1,676,618) | (2,815,475) | (1,698,214) |
Payment for debt issuance costs | (1,852) | (1,419) | (4,494) |
Net cash inflow (outflow) from consolidation (deconsolidation) of VIE | 0 | (5,951) | (15,013) |
Dividends paid on preferred stock | (50,204) | 0 | 0 |
Other financing activities | (7,096) | (19,397) | 3,545 |
Net cash used for financing activities | (842,439) | (540,060) | (239,226) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 141,363 | (156,936) | (231) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 487,122 | 644,058 | 644,289 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 628,485 | 487,122 | 644,058 |
Supplemental Cash Flow Information: | |||
Cash paid for interest | 143,840 | 254,585 | 394,459 |
Cash paid for operating leases included in the measurement of lease liabilities | 16,679 | 16,816 | 0 |
Non-cash investing activity: | |||
Accruals for property, equipment and software | 686 | 1,745 | 2,256 |
Securities retained from Structured Program transactions | 43,458 | 197,267 | 106,609 |
Non-cash investing and financing activity: | |||
Transfer of whole loans to redeem certificates | 17,414 | 122,330 | 1,095 |
Non-cash financing activity: | |||
Exchange of common stock for preferred stock | 207,244 | 0 | 0 |
Derecognition of payable to securitization note and residual certificate holders held in consolidated VIE | $ 0 | $ 200,881 | $ 269,151 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||||
Cash and cash equivalents | $ 524,963 | $ 243,779 | |||
Restricted cash | [1] | 103,522 | 243,343 | ||
Total cash, cash equivalents and restricted cash | $ 628,485 | $ 487,122 | $ 644,058 | $ 644,289 | |
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Millions | Jul. 05, 2019 | Dec. 31, 2020USD ($) |
Statement of Stockholders' Equity [Abstract] | ||
Payment of deemed dividend due to beneficial conversion feature | $ 50.2 | |
1-for-5 stock split ratio | 0.20 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation LendingClub Corporation (LendingClub) operates an online lending marketplace platform that connects borrowers and investors. On February 1, 2021, LendingClub completed the acquisition of Radius Bancorp, Inc. (Radius), through which LendingClub became a bank holding company and formed LendingClub Bank, N.A. (the Bank) as its wholly-owned subsidiary. Additionally, LendingClub has established various entities to facilitate loan sale transactions, including sponsoring asset-backed securitization transactions and Certificate Program transactions (collectively referred to as Structured Program transactions), where certain accredited investors and qualified institutional buyers have the opportunity to invest in senior and subordinated securities backed by a pool of unsecured personal whole loans. Certificate Program transactions include CLUB Certificate and Levered Certificate transactions. LC Trust I (the LC Trust) is an independent Delaware business trust that acquires loans from LendingClub and holds them for the sole benefit of certain investors that have purchased trust certificates issued by the LC Trust that are related to specific underlying loans for the benefit of the investor. The accompanying consolidated financial statements include LendingClub, its subsidiaries (collectively referred to as the Company, we, or us) and consolidated variable interest entities (VIEs). Noncontrolling interests are reported as a separate component of consolidated equity from the equity attributable to LendingClub’s stockholders for all periods presented. All intercompany balances and transactions have been eliminated. These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for financial information and, in the opinion of management, contain all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. These estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. The Company presents loans under a number of different captions to align the assets to their associated liabilities, if any. “Loans held for investment at fair value” are loans which are related to the Company’s Member Payment Dependent Notes (Retail Notes), certificates and secured borrowings program. The Company is not exposed to market risk, interest rate risk or credit risk on these loans and all loan cash flows flow directly to the retail note, certificate and secured borrowing owners. The associated liability for this loan category is included in the caption “Notes, certificates and secured borrowings at fair value.” Loans included in “Loans held for investment by the Company at fair value” and “Loans held for sale by the Company at fair value” are loans which the Company has purchased and from which the Company earns interest income and records net fair value adjustments in earnings for changes in the valuation of loans. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents include the Company’s unrestricted deposits with investment-grade financial institutions, institutional money market funds, certificates of deposit, and commercial paper. The Company considers all highly liquid investments with stated maturity dates of three months or less from the date of purchase to be cash equivalents. Restricted Cash Restricted cash consists primarily of bank deposits and money market funds that are: (i) pledged as security for transactions processed on or related to LendingClub’s platform or activities by certain investors; and (ii) received from the borrower and applied to the loan, but not yet distributed to the investor’s internal platform account or sent to their external account. Investor cash balances (excluding transactions-in-process) are held in segregated bank or custodial accounts and are not commingled with the Company’s monies or held on the Company’s Consolidated Balance Sheets. Securities Available for Sale Debt securities that the Company might not hold until maturity are classified as securities available for sale. In structured program transactions that meet the applicable criteria to be accounted for as a sale, the Company retains certain asset-backed securities including subordinated residual interests and CLUB Certificates, which are classified as securities available for sale. On January 1, 2020, the entity adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) for securities available for sale. Asset-backed securities where the expected cash flows are significantly lower than that of the contractual future cash flows are considered to be purchased with credit deterioration (PCD). The discounted differential in expected and contractual cash flows is included with the purchase price of the asset to determine amortized cost of the security with an equal and offsetting valuation allowance for credit losses. Securities available for sale are recorded at fair value and unrealized gains and losses are reported, net of taxes, in “Accumulated other comprehensive income (loss)” included in Equity in the Company’s Consolidated Balance Sheets unless management determines that the security is impaired due to a deterioration in expected cash flows, in which case the unrealized loss is recognized in earnings within “Net fair value adjustments” as a valuation allowance for credit losses (with the implementation of CECL) or other-than-temporary impairment (prior to the implementation of CECL) in the Company’s Consolidated Statements of Operations. Management evaluates whether debt securities available for sale with unrealized losses are impaired on a quarterly basis. If the Company intends to sell the security, or if it is more likely than not that it will be required to sell the security before recovery, an impairment is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the debt security. However, even if the Company does not expect to sell a debt security it must evaluate if a deterioration in cash flows exists. Loans Held for Investment by the Company and Loans Held for Sale by the Company The Company has elected the fair value option for loans held for investment by the Company and loans held for sale by the Company. Changes in the fair value of loans held by the Company are recorded in “Net fair value adjustments” in the Consolidated Statements of Operations in the period of the fair value changes. The Company places loans held by the Company on non-accrual status at 90 days past due. Accrued interest income on loans held by the Company is calculated based on the contractual interest rate of the loan held by the Company and recorded as interest income as earned. When a loan held by the Company is placed on non-accrual status, the Company stops accruing interest and reverses all accrued but unpaid interest as of such date. The Company charges-off loans held by the Company no later than 120 days past due. The Company does not record an allowance for credit losses on accrued interest receivable. The Company accrues interest income on loans on short term hardship programs using the effective interest rate method. Loans Held for Investment and Related Notes and Certificates The Company has elected the fair value option for loans held for investment and related notes and certificates. Due to the payment dependent feature of the notes and certificates, changes in the fair value of the notes and certificates are offset by changes in the fair values of related loans, resulting in no net effect on the Company’s earnings. The Company places loans held for investment on non-accrual status at 90 days past due. Interest receivable on loans held for investment and accrued interest payable on notes and certificates are reduced when the corresponding loan held for investment is placed on non-accrual status due to the payment dependent nature of the loans held for investment and related notes and certificates. The Company charges-off loans held for investment and related notes and certificates no later than 120 days past due. The Company does not record an allowance for credit losses on accrued interest receivable. Servicing Assets The Company records servicing assets at their estimated fair values when it sells loans or when the Company assumes or acquires a servicing obligation whereby the underlying loans are not included in its financial statements. The gain or loss on a loan sale is recorded separately in “Gain on sales of loans” in the Company’s Consolidated Statements of Operations while the component of the gain or loss that is based on the degree to which the contractual servicing fee is above or below an estimated market servicing rate is recorded as a servicing asset. Servicing assets are reported in “Other assets” on the Company’s Consolidated Balance Sheets. Changes in the fair value of servicing assets are reported in “Investor fees” in the Company’s Consolidated Statements of Operations in the period in which the changes occur. Fair Value of Assets and Liabilities Fair value is the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date (an exit price). The Company uses fair value measurements in its fair value disclosures and to record securities available for sale, loans held for investment and loans held for sale, notes and certificates, and servicing assets and liabilities at fair value on a recurring basis. The fair value hierarchy includes a three-level classification, which is based on whether the inputs to the valuation methodology used for measurement are observable: Level 1 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 — Unobservable inputs. When developing fair value measurements, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. However, for certain instruments the Company must utilize unobservable inputs in determining fair value due to the lack of observable inputs in the market, which requires greater judgment in measuring fair value. In instances where there is limited or no observable market data, fair value measurements for assets and liabilities are based primarily upon the Company’s own estimates, and the measurements reflect information and assumptions that management believes a market participant would use in pricing the asset or liability. Loans held for investment, loans held for sale and related notes, certificates and secured borrowings, are measured at estimated fair value using a discounted cash flow model. The fair valuation methodology considers projected prepayments, underwriting changes and the historical actual defaults, losses and recoveries on the Company’s loans to project future losses and net cash flows on loans. Net cash flows on loans are discounted using an estimate of market rates of return. Loan servicing assets are measured at estimated fair value using a discounted cash flow model. The cash flows in the valuation model represent the difference between the contractual servicing fees charged to investors and an estimated market servicing rate. Since contractual servicing fees are generally based on the monthly unpaid principal balance of the underlying loans, the expected cash flows in the model incorporate estimates of net expected losses and prepayments. The Company uses prices obtained from third-party pricing services to measure the fair value of securities available for sale when available. The Company compares the prices obtained from its primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. When third-party pricing services are not available for a security, such as subordinated residual certificates and CLUB Certificates, the Company measures the fair value of these securities using a discounted cash flow model incorporating inputs consistent with loans held for investment, loans held for sale and related notes, certificates, secured borrowings, and payable to securitization note and certificate holders. Property, Equipment and Software, net Property, equipment and software are carried at cost less accumulated depreciation and amortization. The Company uses the straight-line method of depreciation and amortization. Estimated useful lives range from three years to five years for furniture and fixtures, computer equipment, and software. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. Internally developed software is capitalized when preliminary development efforts are successfully completed and it is probable that the project will be completed, and the software will be used as intended. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts, and costs incurred for upgrades and enhancements to add functionality of the software. Other costs are expensed as incurred. The Company evaluates impairments of its property, equipment and software whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the asset is not recoverable, measurement of an impairment loss is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. Goodwill and Intangible Assets Goodwill represents the fair value of an acquired business in excess of the aggregate fair value of the identified net assets acquired. Goodwill is not amortized but is tested for impairment annually or more frequently whenever events or circumstances indicate that it is more likely than not that the estimated fair value of a reporting unit is below its carrying value. The Company’s annual impairment testing date is April 1. Impairment exists whenever the carrying value of goodwill exceeds its estimated fair value. Adverse changes in impairment indicators such as loss of key personnel, lower than forecast financial performance, increased competition, increased regulatory oversight, or unplanned changes in operations could result in impairment. The Company can elect to qualitatively assess goodwill for impairment if it is more likely than not that the estimated fair value of a reporting unit (generally defined as an operating segment or one level below an operating segment for which financial information is available and reviewed regularly by management) exceeds its carrying value. A qualitative assessment may consider macroeconomic and other industry-specific factors, such as trends in short-term and long-term interest rates and the ability to access capital or company-specific factors, such as market capitalization in excess of net assets, trends in revenue-generating activities and merger or acquisition activity. If the Company does not qualitatively assess goodwill it compares a reporting unit’s estimated fair value to its carrying value. The Company estimates the fair value of a reporting unit using either an income approach (discounted cash flow model) or the income approach corroborated by a market approach. Goodwill impairment loss is measured as the amount by which the carrying amount of a reporting unit exceeds its fair value. When applying the income approach, the Company uses a discounted cash flow model, which requires the estimation of cash flows and an appropriate discount rate. The Company projects cash flows expected to be generated by a reporting unit inclusive of an estimated terminal value. The discount rate assumption contemplates a weighted-average cost of capital based on both market observable and company-specific factors. The discount rate is risk-adjusted to include any premiums related to equity price volatility, size, and projected capital structure of publicly traded companies in similar lines of business. The Company relies on several assumptions when estimating the fair value of a reporting unit using the discounted cash flow method. These assumptions include the current discount rate discussed above, as well as transaction fee revenue based on projected loan origination growth and revenue growth, projected operating expenses and Contribution Margin, direct and allocated general and administrative and technology expenses, capital expenditures and income taxes. The Company believes these assumptions to be representative of assumptions that a market participant would use in valuing a reporting unit, but these assumptions involve the use of estimates and judgments, particularly related to future cash flows, which are inherently uncertain. There can be no assurances that estimates and assumptions made for purposes of goodwill impairment testing will prove accurate predictions of the future. The market approach estimates the fair value of a reporting unit based on certain market value multiples of publicly traded companies in similar lines of business, such as total enterprise value to revenue, or to EBITDA. Under the market approach, the Company also considers fair value implied from any relevant and comparable market transactions. Goodwill impairment loss is measured as the amount by which the carrying amount of a reporting unit exceeds its fair value. See “ Note 11. Intangible Assets and Goodwill ” for additional information. Intangible assets are amortized over their useful lives in a manner that best reflects their economic benefit, which may include straight-line or accelerated methods of amortization. Intangible assets are reviewed for impairment quarterly and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company does not have indefinite-lived intangible assets. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities in “Accrued expenses and other liabilities” in the Company’s Consolidated Balance Sheets. Associated legal expense is recorded in “Other general and administrative” expense or in “Class action and regulatory litigation expense” for the losses associated with the securities class action lawsuits, as described in “ Note 19. Commitments and Contingencies, ” in the Company’s Consolidated Statements of Operations. Such liabilities and associated expenses are recorded when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company will also disclose a range of exposure to incremental loss when such amounts are reasonably possible and can be estimated. In estimating the Company’s exposure to loss contingencies, if an amount within the estimated range of loss is the best estimate, that amount will be accrued. However, if there is no amount within the estimated range of loss that is the best estimate, the Company will accrue the minimum amount within the range, and disclose the amount up to the high end of the range as an exposure to incremental loss, if such amount is considered reasonably possible. Such estimates are based on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability and records an adjustment to its estimate in the period in which the adjustment is probable and an amount or range can be reasonably estimated. The determination of an expected contingent liability and associated litigation expense requires the Company to make assumptions related to the outcome of these matters. Due to the inherent uncertainties of loss contingencies, the Company’s estimates may be different than the actual outcomes. Legal fees, including legal fees associated with loss contingencies, are recognized as incurred and included in “Other general and administrative” expense in the Company’s Consolidated Statements of Operations. Revenue Recognition Transaction Fees : The Company has a single performance obligation to provide customers access to the Company’s platform. Transaction fees are considered revenue from contracts with customers, including issuing banks and education and patient service providers. The Company recognizes transaction fee revenue each time a loan is facilitated by the Company, who provides loan application processing and loan facilitation services, resulting in a loan issued by the customers. Transaction fees are based on the initial principal amount of the loans facilitated by the Company and paid by the issuing banks and education and patient service providers each time a loan is issued by the issuing banks. Transaction fees to which the Company expects to be entitled are variable consideration because loan volume originated over the contractual term is not known at the contract’s inception. The transaction fee is determined each time a loan is issued based on that loan’s initial principal amount. The Company pays WebBank a loan trailing fee to give WebBank an ongoing financial interest in the performance of the loans it originates and sells to the Company. The Loan Trailing Fee is paid over time based on the amount and timing of principal and interest payments made by borrowers of the underlying loans. The Loan Trailing Fee is consideration payable to WebBank and the loan trailing fee liability is recorded at fair value. Additionally, the Company assumes the issuing bank’s obligation under Utah law to refund the pro-rated amount of the transaction fee in excess of 5% in the event the borrower prepays the loan in full before maturity. Both the loan trailing fees and transaction fee refunds are recorded as a reduction of transaction fee revenue in the Company’s Consolidated Statements of Operations and are included in “Accrued expenses and other liabilities” on the Company’s Consolidated Balance Sheets. Other Revenue : Other revenue primarily consists of referral fee revenue and sublease revenue from our sublet office space in San Francisco, California. The Company is entitled to receive referral fees from third-party companies when customers referred by the Company consider or purchase products or services from such third-party companies. Referral contracts contain a single performance obligation. The Company recognizes referral fees for each distinct instance when the criteria for receiving the referral fee has been satisfied. Sublease revenue is recognized on a straight-line basis over the term of the lease. Stock-based Compensation Stock-based compensation includes expense associated with restricted stock units (RSUs) and performance-based restricted stock units (PBRSUs), stock options, and the Company’s employee stock purchase plan (ESPP), as well as expense associated with stock issued related to acquisitions. Stock-based compensation expense is based on the grant date fair value of the award. The cost is generally recognized over the vesting period on a straight-line basis. Forfeitures are recognized as incurred. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers the available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. If the Company determines that it is able to realize its deferred tax assets in the future in excess of the net recorded amount, the Company decreases the deferred tax asset valuation allowance, which reduces the provision for income taxes. Uncertain tax positions are recognized only when we believe it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company recognizes interest and penalties, if any, related to uncertain tax positions in “Income tax expense (benefit)” in the Consolidated Statements of Operations. Net Income (Loss) Per Share Basic net income (loss) per share (Basic EPS) attributable to common stockholders is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share (Diluted EPS) is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period, adjusted for the effects of dilutive issuances of shares of common stock, which include incremental shares issued for outstanding RSUs, PBRSUs, and stock options. PBRSUs are included in dilutive shares to the extent the pre-established performance targets have been or are estimated to be satisfied as of the reporting date. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding RSUs, PBRSUs, and stock options are excluded from the computation of Diluted EPS in periods in which the effect would be antidilutive. For periods with more than one class of common shares, the Company computes Basic and Diluted EPS using the two-class method, which is an allocation of net income (loss) among the holders of each class of common shares. The Series A Preferred Stock is considered a separate class of common share for purposes of calculating net income (loss) per share because it participates in earnings similar to common stock and does not receive any significant preferences over the common stock. Beneficial Conversion Feature The Company accounts for the beneficial conversion feature (BCF) on its Series A Preferred Stock in accordance with ASC 470-20, Debt with Conversion and Other Options . The Company accretes the BCF discount from the date of issuance to the earliest conversion date, which was March 20, 2020. All of the BCF discount was accreted and recognized as a deemed dividend in “Accumulated deficit” on the Company’s Condensed Consolidated Balance Sheets. See “ Note 15. Stockholders' Equity ” for additional information. Consolidation of Variable Interest Entities A variable interest entity (VIE) is a legal entity that has either a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. The Company’s variable interest arises from contractual, ownership or other monetary interests in the entity, which change with fluctuations in the fair value of the entity’s net assets. A VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance, and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates a VIE when it is deemed to be the primary beneficiary. The Company assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. Transfers of Financial Assets The Company accounts for transfers of financial assets as sales when it has surrendered control over the transferred assets. Control is generally considered to have been surrendered when the transferred assets have been legally isolated from the Company, the transferee has the right to pledge or exchange the assets without any significant constraints, and the Company has not entered into a repurchase agreement, does not hold unconditional call options and has not written put options on the transferred assets. In assessing whether control has been surrendered, the Company considers whether the transferee would be a consolidated affiliate and the impact of all arrangements or agreements made contemporaneously with, or in contemplation of the transfer, even if they were not entered into at the time of transfer. The Company measures gain or loss on sale of financial assets as the net proceeds received on the sale less the carrying amount of the loans sold. The net proceeds of the sale represent the fair value of any assets obtained or liabilities incurred as part of the transaction, including, but not limited to servicing assets, retained securities, and recourse obligations. Transfers of financial assets that do not qualify for sale accounting are reported as secured borrowings. Accordingly, the related assets remain on the Company’s Consolidated Balance Sheets and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with related interest expense recognized over the life of the related assets. Adoption of New Accounting Standards The Company adopted the following accounting standards during the year ended December 31, 2020: On January 1, 2020, the entity adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . For loans accounted for at amortized cost, the guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. As the Company has elected the fair value option for loans and loans accounted for at fair value through net income are outside the scope of Topic 326, there is no impact on the Company’s loan portfolios. For debt securities available for sale, Topic 326 requires recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. Upon adoption, the amendments in Topic 326 are recognized through a cumulative-effect adjustment to retained earnings, except for debt securities with prior other-than-temporary impairment whereby Topic 326 is applied prospectively. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis remains the same before and after the effective date of ASC 326. The effective interest rate on these debt securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of January 1, 2020 relating to improvements in cashflows expected to be collected are accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 are recorded in earnings when received. Additionally, the Company adopted ASC 326 using the prospective transition approach for PCD financial assets. The Company did not have any previously classified assets as purchased credit impaired (PCI) under ASC 310-30. In accordance with this standard, management did not reevaluate for PCD upon transition. Adoption of Topic 326 did not have an impact on the Company’s financial position, results of operations, and cash flows. The Company did not record a cumulative effect adjustment to retained earnings. The Company included the disclosures required by ASU 2016-13 in “ Note 5. Securities Available for Sale. ” In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and valuation processes for Level 3 fair value measurements. The ASU adds new disclosure requirements for Level 3 measurements. The new guidance became effective on January 1, 2020 and did not have a material impact on the Company’s related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software – (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires a customer in a hosting arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The standard became effective on January 1, 2020 and the Company adopted the standard using the prospective approach. The Company has reviewed existing cloud computing arrangements and determined which ones are service contracts. Implementation costs that are not from internal developers related to service contracts that satisfy the criteria for capitalization under ASC 350-40 will be presented with “Other assets” on the Company’s Consolidated Balance Sheets, amortization expense will be presented in the same line on the income statement as the fees for the associated hosted service on the Company’s Consolidated Statements of Operations, and the cash flows will be presented consistent with the presentation of cash flows for the fees related to the hosted service, generally as cash flows from operations, on the Company’s Consolidated Statements of Cash Flows. Adoption of the standard did not have a material impact on the Company’s financial position, results of operations, cash flows, or disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is part of the FASB’s initiative to reduce complexity in accounting standards. The ASU eliminates certain exceptions to the general principles of ASC 740, Income Taxes , and simplifies income tax accounting in several areas. The standard is effective for fiscal periods beginning after December 15, 2020 with early adoption permitted. The Company early adopted this ASU as of January 1, 2020, and did not have a material impact on its financial position, results of operations, cash flows, and disclosures. New Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which, if certain criteria are met, provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with CustomersThe Company’s revenue from contracts with customers includes transaction fees and referral fees. Referral fees are presented as a component of “Other revenue” in the Consolidated Statements of Operations. The following table presents the Company’s revenue from contracts with customers, disaggregated by revenue source for services transferred over time, for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 2018 Transaction fees $ 207,640 $ 598,760 $ 526,942 Referral fees 5,011 5,474 3,645 Total revenue from contracts with customers $ 212,651 $ 604,234 $ 530,587 The Company recognizes transaction and referral fees at each distinct instance after the Company satisfies its performance obligations. The Company had no bad debt expense for the years ended December 31, 2020 and 2019. Because revenue is recognized at the same time that payments are received, the Company had no contract assets, contract liabilities, or deferred contract costs recorded as of December 31, 2020 and 2019. Additionally, the Company did not recognize any revenue from performance obligations related to prior periods (for example, due to changes in transaction price) for the years ended December 31, 2020 and 2019. For additional detail on the Company’s accounting policy regarding revenue recognition, see “ Note 2. Summary of Significant Accounting Policies ” above. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following table details the computation of the Company’s basic and diluted net loss per share of common stock and Series A Preferred Stock: Year Ended December 31, 2020 2019 2018 Common Stock Preferred Stock (1)(2) Common Stock Common Stock Allocation of undistributed LendingClub net loss $ (154,664) $ (32,874) $ (30,745) $ (128,308) Deemed dividend (50,204) 50,204 — — Net loss attributable to stockholders $ (204,868) $ 17,330 $ (30,745) $ (128,308) Weighted-average common shares – Basic and Diluted (2) 77,934,302 12,505,393 87,278,596 84,583,461 Net loss per share attributable to stockholders – Basic and Diluted (2) $ (2.63) $ 1.39 $ (0.35) $ (1.52) (1) Presented on an as-converted basis. (2) See “ Note 2. Summary of Significant Accounting Policies ” and “ Note 15. Stockholders' Equity ” for additional information. In February 2020, the Company entered into an exchange agreement with its largest stockholder, Shanda Asset Management Holdings Limited and its affiliates (Shanda), pursuant to which, on March 20, 2020, Shanda exchanged all of 19,562,881 shares of LendingClub common stock, par value of $0.01 per share, held by it for (i) 195,628 newly issued shares of mandatorily convertible, non-voting, LendingClub preferred stock, series A (Series A Preferred Stock), par value of $0.01 per share, and (ii) a one-time cash payment of $50.2 million. The Series A Preferred Stock is considered a separate class of common shares for purposes of calculating net income (loss) per share because it participates in earnings similar to common stock and does not receive any significant preferences over the common stock. See “ Note 15. Stockholders' Equity ” for additional information. During the period that included the Company’s preferred stock, Basic and Diluted EPS were computed using the two-class method, which is a net income (loss) allocation that determines EPS for each class of common stock according to dividends declared and participation rights in undistributed income (loss). The following table summarizes the weighted-average common shares that were excluded from the Company’s diluted net loss per share computation because their effect would have been anti-dilutive for the periods presented: Year Ended December 31, 2020 2019 2018 Preferred stock 12,505,393 — — Stock options 221,949 455,627 893,425 RSUs and PBRSUs 299,747 59,812 63,959 Total 13,027,089 515,439 957,384 |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale The Company’s Structured Program transactions include (i) asset-backed securitization transactions and (ii) Certificate Program transactions. Certificate Program transactions include CLUB Certificate and Levered Certificate transactions. In connection with asset-backed securitizations, the Company is the sponsor and establishes trusts to ultimately purchase the unsecured personal loans from the Company and/or third-party whole loan investors. Securities issued from our asset-backed securitizations are senior or subordinated based on the waterfall criteria of loan payments to each security class. The subordinated residual interests issued from these transactions are first to absorb credit losses in accordance with the waterfall criteria. The assets are transferred into a trust such that the assets are legally isolated from the creditors of the Company and are not available to satisfy obligations of the Company. These assets can only be used to settle obligations of the underlying trusts. The asset-backed securitization senior securities and subordinated residual interests retained by the Company are presented as “Asset-backed senior securities” and “Asset-backed subordinated securities,” respectively, in the securities available for sale tables below. In addition, the Company sponsors the sale of unsecured personal loans through the issuance of certificate securities under our Certificate Program. The certificate securities are collateralized by loans transferred to a series of a master trust and trade in the over-the-counter market with a CUSIP. The assets are transferred into a trust such that the assets are legally isolated from the creditors of the Company and are not available to satisfy obligations of the Company. These assets can only be used to settle obligations of the underlying Certificate Program trusts. The CLUB Certificate issued securities are pass-through securities of which each owner has an undivided and equal interest in the underlying loans of each transaction. The Levered Certificate issued securities include senior and subordinated securities based on the waterfall criteria of loan payments to each security class. The subordinated securities issued from these transactions are first to absorb credit losses in accordance with the waterfall criteria. The CLUB Certificate issued securities retained by the Company are presented as “CLUB Certificate asset-backed securities” in the securities available for sale tables below. The Levered Certificate issued senior and subordinated securities retained by the Company are presented in aggregate with securities from asset-backed securitizations as “Asset-backed senior securities” and “Asset-backed subordinated securities,” respectively, in the tables below. The “Other asset-backed securities” caption in the tables below primarily includes investment-grade rated bonds that are collateralized by automobile loan receivables. In the fourth quarter of 2020, the Company liquidated a portion of its investment portfolio, which included commercial paper, corporate debt securities, asset-backed securities, and certificates of deposit. The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of December 31, 2020 and 2019, were as follows: December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair Asset-backed senior securities (1)(2) $ 75,332 $ 67 $ (27) $ — $ 75,372 CLUB Certificate asset-backed securities (1)(2) 54,525 576 (772) (4,190) 50,139 Asset-backed subordinated securities (1)(2) 29,107 2,128 (174) (14,546) 16,515 Other securities (2) 200 — — — 200 Total securities available for sale $ 159,164 $ 2,771 $ (973) $ (18,736) $ 142,226 December 31, 2019 Amortized Gross Gross Fair Asset-backed senior securities (1)(2) $ 108,780 $ 597 $ (38) $ 109,339 CLUB Certificate asset-backed securities (1)(2) 90,728 41 (1,063) 89,706 Asset-backed subordinated securities (1)(2) 20,888 423 (221) 21,090 Corporate debt securities 14,333 11 (1) 14,343 Certificates of deposit 13,100 — — 13,100 Other asset-backed securities 12,075 6 (1) 12,080 Commercial paper 9,274 — — 9,274 U.S. agency securities 1,995 — — 1,995 Total securities available for sale $ 271,173 $ 1,078 $ (1,324) $ 270,927 (1) As of December 31, 2020 and 2019, $119.3 million and $219.0 million, respectively, of the asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company’s obligations as a “sponsor” under the U.S. Risk Retention Rules (as more fully described in “ Part I – Item 1A. Risk Factors – Risk retention rules may increase our compliance costs, impair our liquidity and otherwise adversely affect our operating results. ”) (2) As of December 31, 2020 and 2019, includes $133.5 million and $174.8 million, respectively, of securities pledged as collateral at fair value. A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded as of December 31, 2020 and 2019, aggregated by period of continuous unrealized loss, is as follows: Less than 12 months Total December 31, 2020 Fair Unrealized Fair Unrealized Fair Unrealized Asset-backed securities related to Structured Program transactions $ 26,678 $ (855) $ 6,052 $ (118) $ 32,730 $ (973) Total securities with unrealized losses (1) $ 26,678 $ (855) $ 6,052 $ (118) $ 32,730 $ (973) Less than 12 months Total December 31, 2019 Fair Unrealized Fair Unrealized Fair Unrealized Asset-backed securities related to Structured Program transactions $ 91,350 $ (1,287) $ 1,875 $ (35) $ 93,225 $ (1,322) Corporate debt securities 4,613 (1) — — 4,613 (1) Other asset-backed securities 3,062 (1) — — 3,062 (1) Total securities with unrealized losses (1) $ 99,025 $ (1,289) $ 1,875 $ (35) $ 100,900 $ (1,324) (1) The number of investment positions with unrealized losses at December 31, 2020 and 2019 totaled 55 and 70, respectively. The Company recorded an allowance for credit loss on those securities where there was a deterioration in future estimated cash flows. The Company also recorded unrealized losses on securities with fair value price reductions due to higher liquidity premiums observed due to the market dislocation related to COVID-19. The Company deemed it not necessary to record unrealized losses as an allowance for credit loss for certain securities due to the nature of those securities and their investment grade quality. During the year ended December 31, 2020, the Company recognized $3.4 million in credit recovery and loss expense. During the years ended December 31, 2019 and 2018, the Company recognized $3.6 million and $3.0 million, respectively, in other-than-temporary impairment charges on its asset-backed securities related to Structured Program transactions. There were no credit losses recognized into earnings for other-than-temporarily impaired securities held by the Company during the years ended December 31, 2020, 2019 and 2018 for which a portion of the impairment was previously recognized in other comprehensive income. The following table presents the activity in the allowance for credit losses for securities available for sale, by major security type, for the year ended December 31, 2020: Allowance for Credit Losses CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of January 1, 2020 $ — $ — $ — Provision for credit loss expense (236) (3,146) (3,382) Allowance arising from PCD financial assets (3,954) (11,400) (15,354) Ending balance as of December 31, 2020 $ (4,190) $ (14,546) $ (18,736) Securities available for sale purchased with credit deterioration during the year ended December 31, 2020 were as follows: Year Ended December 31, 2020 Purchase price of PCD securities at acquisition $ 27,034 Allowance for credit losses on PCD securities at acquisition 15,353 Par value of acquired PCD securities at acquisition $ 42,387 The contractual maturities of securities available for sale at December 31, 2020, were as follows: Amortized Cost Fair Value Within 1 year: Other securities $ 200 $ 200 Total 200 200 Asset-backed securities related to Structured Program transactions 158,964 142,026 Total securities available for sale $ 159,164 $ 142,226 During the years ended December 31, 2020, 2019 and 2018, the Company and Consumer Loan Underlying Bond Depositor LLC (Depositor), a subsidiary of the Company, sold a combined $1.3 billion, $4.5 billion and $2.0 billion, respectively, in asset-backed securities related to Structured Program transactions. There were no realized gains or losses related to such sales. For further information see “ Note 7. Securitizations and Variable Interest Entities. ” Proceeds and gross realized gains and losses from other sales of securities available for sale were as follows: Year Ended December 31, 2020 2019 2018 Proceeds $ 6,217 $ 12,548 $ 497 Gross realized gains $ 14 $ 9 $ 1 Gross realized losses $ (3) $ (1) $ (3) |
Loans Held for Investment, Loan
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings Loans Held for Investment, Notes, Certificates and Secured Borrowings The Company issued member payment dependent notes and the LC Trust issued certificates as a means to allow investors to invest in the corresponding loans. At December 31, 2020 and 2019, loans held for investment, notes, certificates and secured borrowings measured at fair value on a recurring basis were as follows: Loans Held for Investment Notes, Certificates and Secured Borrowings December 31, 2020 2019 2020 2019 Aggregate principal balance outstanding $ 679,903 $ 1,148,888 $ 679,903 $ 1,148,888 Net fair value adjustments (43,217) (69,573) (43,129) (67,422) Fair value $ 636,686 $ 1,079,315 $ 636,774 $ 1,081,466 At December 31, 2020 and 2019, a fair value of $0.8 million and $18.0 million included in “Loans held for investment at fair value” was pledged as collateral for secured borrowings, respectively. The following table provides the balances of notes, certificates and secured borrowings at fair value at the end of the periods indicated: December 31, 2020 2019 Notes $ 583,219 $ 863,488 Certificates 52,620 197,842 Secured borrowings 935 20,136 Total notes, certificates and secured borrowings $ 636,774 $ 1,081,466 Loans Invested in by the Company At December 31, 2020 and 2019, loans invested in by the Company for which there were no associated notes, certificates or secured borrowings (with the exception of $148.3 million and $40.3 million in loans at fair value in consolidated trusts as of December 31, 2020 and 2019, respectively) were as follows: Loans Invested in by the Company Loans Held for Investment Loans Held for Sale Total December 31, 2020 2019 2020 2019 2020 2019 Aggregate principal balance outstanding $ 56,388 $ 47,042 $ 132,600 $ 747,394 $ 188,988 $ 794,436 Net fair value adjustments (6,434) (3,349) (10,698) (25,039) (17,132) (28,388) Fair value $ 49,954 $ 43,693 $ 121,902 $ 722,355 $ 171,856 $ 766,048 The net fair value adjustments of $(17.1) million, $(28.4) million and $(30.6) million represent net unrealized losses recorded in earnings on loans invested in by the Company at December 31, 2020, 2019 and 2018, respectively. Total fair value adjustments recorded in earnings on loans invested in by the Company of $(101.7) million, $(141.0) million and $(102.0) million during the years ended December 31, 2020, 2019 and 2018, respectively, include net realized losses and changes in net unrealized losses. Net interest income earned on loans invested in by the Company during the years ended December 31, 2020, 2019 and 2018 was $59.0 million, $80.9 million and $90.9 million, respectively. The Company used its own capital to purchase $1.6 billion in loans and sold $1.9 billion in loans during the year ended December 31, 2020, which were securitized or sold to series trusts in connection with the Company’s Certificate Program or sold to whole loan investors. The fair value of loans invested in by the Company was $171.9 million at December 31, 2020, which included $148.3 million related to Structured Program transactions that were consolidated and a related payable to Structured Program note and certificate holders at fair value of $152.8 million as of December 31, 2020. See “ Note 7. Securitizations and Variable Interest Entities ” and “ Note 14. Debt ” for further discussion on the Company’s consolidated trusts and “ Note 8. Fair Value of Assets and Liabilities ” for a fair value rollforward of loans invested in by the Company for the years ended December 31, 2020 and 2019. At December 31, 2019, loans with a fair value of $551.5 million included in “Loans held for sale by the Company at fair value” were pledged as collateral for the Company’s warehouse credit facilities, respectively. See “ Note 14. Debt ” for additional information related to these debt obligations. There were no such loans pledged as collateral at December 31, 2020. Loans that were 90 days or more past due (including non-accrual loans) were as follows: December 31, 2020 2019 Loans held for investment: Outstanding principal balance $ 4,690 $ 10,755 Net fair value adjustments (3,883) (9,663) Fair value $ 807 $ 1,092 Number of loans (not in thousands) 769 1,428 Loans invested in by the Company: Outstanding principal balance $ 1,090 $ 2,315 Net fair value adjustments (921) (2,016) Fair value $ 169 $ 299 Number of loans (not in thousands) 129 338 |
Securitizations and Variable In
Securitizations and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Securitizations and Variable Interest Entities | Securitizations and Variable Interest Entities VIE Assets and Liabilities The following tables provide the classifications of assets and liabilities on the Company’s Consolidated Balance Sheets for its transactions with consolidated and unconsolidated VIEs at December 31, 2020 and 2019. Additionally, the assets and liabilities in the tables below exclude intercompany balances that eliminate in consolidation: December 31, 2020 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 15,983 $ — $ 15,983 Securities available for sale at fair value — 142,026 142,026 Loans held for investment at fair value 52,620 — 52,620 Loans held for investment by the Company at fair value 50,102 — 50,102 Loans held for sale by the Company at fair value 98,190 — 98,190 Accrued interest receivable 1,134 87 1,221 Other assets 136 32,778 32,914 Total assets $ 218,165 $ 174,891 $ 393,056 Liabilities Accrued interest payable $ 721 $ — $ 721 Accrued expenses and other liabilities 8 — 8 Notes, certificates and secured borrowings at fair value 52,620 — 52,620 Payable to Structured Program note and certificate holders at fair value 152,808 — 152,808 Total liabilities 206,157 — 206,157 Total net assets $ 12,008 $ 174,891 $ 186,899 December 31, 2019 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 30,046 $ — $ 30,046 Securities available for sale at fair value — 220,135 220,135 Loans held for investment at fair value 197,842 — 197,842 Loans held for investment by the Company at fair value 40,251 — 40,251 Loans held for sale by the Company at fair value 551,455 — 551,455 Accrued interest receivable 4,431 877 5,308 Other assets 1,359 52,098 53,457 Total assets $ 825,384 $ 273,110 $ 1,098,494 Liabilities Accrued interest payable $ 3,185 $ — $ 3,185 Accrued expenses and other liabilities 244 — 244 Notes, certificates and secured borrowings at fair value 197,842 — 197,842 Payable to Structured Program note and certificate holders at fair value 40,610 — 40,610 Credit facilities and securities sold under repurchase agreements 387,251 — 387,251 Total liabilities 629,132 — 629,132 Total net assets $ 196,252 $ 273,110 $ 469,362 Consolidated VIEs The Company consolidates VIEs when it is deemed to be the primary beneficiary. See “ Note 2. Summary of Significant Accounting Policies ” for additional information. LC Trust The Company established the LC Trust for the purpose of acquiring and holding loans for the sole benefit of certain investors that have purchased trust certificates issued by the LC Trust. The Company is obligated to ensure that the LC Trust meets minimum capital requirements with respect to funding the administrative activities and maintaining the operations of the LC Trust. Consolidated Trusts The Company establishes trusts to facilitate the sale of loans and issuance of senior and subordinated securities. If the Company is the primary beneficiary of the trust, it is a consolidated VIE and will reflect senior and subordinated securities held by third parties as a “Payable to Structured Program note and certificate holders at fair value” in the Company’s Consolidated Balance Sheets. If subsequently the Company is not the primary beneficiary of the trust, the Company will deconsolidate the VIE. See “ Note 2. Summary of Significant Accounting Policies ” and “ Note 14. Debt ” for additional information. Warehouse Credit Facilities The Company established certain entities (deemed to be VIEs) to enter into warehouse credit facilities for the purpose of purchasing loans from LendingClub. See “ Note 14. Debt ” for additional information. The following tables present a summary of financial assets and liabilities from the Company’s involvement with consolidated VIEs at December 31, 2020 and 2019: December 31, 2020 Assets Liabilities Net Assets LC Trust $ 55,447 $ (53,068) $ 2,379 Consolidated trusts 162,460 (153,089) 9,371 Warehouse credit facility 258 — 258 Total consolidated VIEs $ 218,165 $ (206,157) $ 12,008 December 31, 2019 Assets Liabilities Net Assets LC Trust $ 201,696 $ (199,520) $ 2,176 Consolidated trusts 43,300 (40,687) 2,613 Warehouse credit facilities 580,388 (388,925) 191,463 Total consolidated VIEs $ 825,384 $ (629,132) $ 196,252 The creditors of the VIEs above have no recourse to the general credit of the Company as the primary beneficiary of the VIEs and the liabilities of the VIEs can only be settled by the respective VIE’s assets. Unconsolidated VIEs The Company’s transactions with unconsolidated VIEs include asset-backed securitizations, Certificate Program transactions and loan sale transactions of unsecured personal loans. The Company has various forms of involvement with VIEs, including servicing of loans and holding senior or subordinated residual interests in the VIEs. The accounting for these transactions is based on a primary beneficiary analysis to determine whether the underlying VIEs should be consolidated. If the VIEs are not consolidated and the transfer of the loans from the Company to the VIE meets sale accounting criteria, then the Company will recognize a gain or loss on sales of loans. The Company considers continued involvement in an unconsolidated VIE insignificant if it is the sponsor and servicer and does not hold other significant variable interests. In these instances, the Company’s involvement with the VIE is in the role as an agent and without significant participation in the economics of the VIE. The Company enters into separate servicing agreements with the VIEs and holds at least 5% of the beneficial interests issued by the VIEs to comply with regulatory risk retention rules. The beneficial interests retained by the Company consist of senior securities and subordinated securities and are accounted for as securities available for sale. In connection with these transactions, we make certain customary representations, warranties and covenants. See “ Note 2. Summary of Significant Accounting Policies ” for additional information. Investment Fund The Company has an equity investment in a private fund (Investment Fund) that participates in a family of funds with other unrelated third parties. This family of funds purchases assets from third parties unrelated to the Company and historically purchased whole loans and interests in loans from the Company. As of December 31, 2020, the Company had an ownership interest of approximately 22% in the Investment Fund. The Company’s investment is deemed to be a variable interest in the Investment Fund because the Company shares in the expected returns and losses of the Investment Fund. The Company has requested a full redemption of its investment in the Investment Fund. The Investment Fund provides audited financial statements annually and periodic investment statements throughout each calendar year on a delayed basis, which are used by the Company to evaluate performance and recoverability of our investment. At December 31, 2020, the Company’s investment was $7.8 million, which is recognized in “Other assets” on the Company’s Consolidated Balance Sheets. The following tables summarize unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary at December 31, 2020 and 2019: December 31, 2020 Carrying Value Total VIE Assets Securities Available for Sale Accrued Interest Receivable Other Assets Net Assets Unconsolidated Trusts $ 1,267,611 $ 57,511 $ 48 $ 9,606 $ 67,165 Certificate Program 1,931,429 84,515 39 15,397 99,951 Investment Fund 34,376 — — 7,775 7,775 Total unconsolidated VIEs $ 3,233,416 $ 142,026 $ 87 $ 32,778 $ 174,891 December 31, 2020 Maximum Exposure to Loss Securities Available for Sale Accrued Interest Receivable Other Assets Total Exposure Unconsolidated Trusts $ 57,511 $ 48 $ 9,606 $ 67,165 Certificate Program 84,515 39 15,397 99,951 Investment Fund — — 7,775 7,775 Total unconsolidated VIEs $ 142,026 $ 87 $ 32,778 $ 174,891 December 31, 2019 Carrying Value Total VIE Assets Securities Available for Sale Accrued Interest Receivable Other Assets Net Assets Unconsolidated Trusts $ 1,909,219 $ 93,881 $ 362 $ 18,768 $ 113,011 Certificate Program 2,585,957 126,254 515 25,588 152,357 Investment Fund 34,170 — — 7,742 7,742 Total unconsolidated VIEs $ 4,529,346 $ 220,135 $ 877 $ 52,098 $ 273,110 December 31, 2019 Maximum Exposure to Loss Securities Available for Sale Accrued Interest Receivable Other Assets Total Exposure Unconsolidated Trusts $ 93,881 $ 362 $ 18,768 $ 113,011 Certificate Program 126,254 515 25,588 152,357 Investment Fund — — 7,742 7,742 Total unconsolidated VIEs $ 220,135 $ 877 $ 52,098 $ 273,110 “Total VIE Assets” represents the remaining principal balance of loans held by unconsolidated VIEs with respect to Unconsolidated Trusts, Certificate Program transactions, and the net assets held by the Investment Fund using the most current information available. “Securities Available for Sale,” “Accrued Interest Receivable,” and “Other Assets” are the balances in the Company’s Consolidated Balance Sheets related to its involvement with the unconsolidated VIEs. “Other Assets” includes the Company’s servicing assets and servicing receivables and the Company’s equity investment with respect to the Investment Fund. “Total Exposure” refers to the Company’s maximum exposure to loss from its involvement with unconsolidated VIEs. It represents estimated loss that would be incurred under severe, hypothetical circumstances, for which the Company believes the possibility is extremely remote, such as where the value of interests and any associated collateral declines to zero. Accordingly, this required disclosure is not an indication of expected losses. The following table summarizes activity related to the Unconsolidated Trusts and Certificate Program trusts, with the transfers accounted for as a sale on the Company’s consolidated financial statements for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Unconsolidated Trusts Unconsolidated Certificate Unconsolidated Trusts Unconsolidated Certificate Principal derecognized from loans securitized or sold (1) $ 255,203 $ 971,738 $ 1,553,847 $ 2,868,709 Net gains (losses) recognized from loans securitized or sold $ (20) $ 7,897 $ 4,809 $ 32,417 Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement (2) $ 12,707 $ 35,836 $ 75,924 $ 140,825 Cash proceeds from loans securitized or sold $ 237,764 $ 598,694 $ 1,212,521 $ 2,555,713 Cash proceeds from servicing and other administrative fees on loans securitized or sold $ 17,684 $ 26,822 $ 16,961 $ 17,071 Cash proceeds for interest received on senior securities and subordinated securities $ 4,559 $ 8,251 $ 5,022 $ 7,717 (1) Included non-cash purchase and sale of loans requested by investors to facilitate a Structured Program transaction during the third quarter of 2020. (2) For Structured Program transactions, the Company retained asset-backed senior securities of $26.3 million and $98.7 million, CLUB Certificate asset-backed securities of $18.3 million and $101.3 million, and asset-backed subordinated securities of $4.0 million and $16.8 million for the years ended December 31, 2020 and 2019, respectively. Off-Balance Sheet Loans Off-balance sheet loans primarily relate to Structured Program transactions for which the Company has some form of continuing involvement, including as servicer. Delinquent loans are comprised of loans 31 days or more past due, including non-accrual loans. Loans to eligible borrowers participating in Skip-a-Pay are not considered delinquent during the commensurate period the loan is extended. For loans related to Structured Program transactions where servicing is the only form of continuing involvement, the Company would only experience a loss if it was required to repurchase a loan due to a breach in representations and warranties associated with its loan sale or servicing contracts. As of December 31, 2020, the aggregate unpaid principal balance of the off-balance sheet loans pursuant to Structured Program transactions was $3.2 billion, of which $94.8 million was attributable to off-balance sheet loans that were 31 days or more past due. As of December 31, 2019, the aggregate unpaid principal balance of the off-balance sheet loans pursuant to Structured Program transactions was $4.4 billion, of which $145.6 million was attributable to off-balance sheet loans that were 31 days or more past due. Retained Interests from Unconsolidated VIEs The Company and other investors in the subordinated interests issued by trusts and Certificate Program trusts have rights to cash flows only after the investors holding the senior securities issued by the trusts have first received their contractual cash flows. The investors and the trusts have no direct recourse to the Company’s assets, and holders of the securities issued by the trusts can look only to the assets of the securitization trusts that issued their securities for payment. The beneficial interests held by the Company are subject principally to the credit and prepayment risk stemming from the underlying unsecured personal whole loans. See “ Note 8. Fair Value of Assets and Liabilities ” for additional information on the fair value sensitivity of asset-backed securities related to Structured Program transactions. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities For a description of the fair value hierarchy and the Company’s fair value methodologies, see “ Note 2. Summary of Significant Accounting Policies. ” The Company records certain assets and liabilities at fair value as listed in the following tables. Financial Instruments, Assets and Liabilities Recorded at Fair Value The following tables present the fair value hierarchy for assets and liabilities measured at fair value at December 31, 2020 and 2019: December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Loans held for investment $ — $ — $ 636,686 $ 636,686 Loans held for investment by the Company — — 49,954 49,954 Loans held for sale by the Company — — 121,902 121,902 Securities available for sale: Asset-backed senior securities and subordinated securities — 75,372 16,515 91,887 CLUB Certificate asset-backed securities — — 50,139 50,139 Other securities — 200 — 200 Total securities available for sale — 75,572 66,654 142,226 Servicing assets — — 56,347 56,347 Total assets $ — $ 75,572 $ 931,543 $ 1,007,115 Liabilities: Notes, certificates and secured borrowings $ — $ — $ 636,774 $ 636,774 Payable to Structured Program note and certificate holders — — 152,808 152,808 Deferred revenue — — 4,776 4,776 Loan trailing fee liability — — 7,494 7,494 Total liabilities $ — $ — $ 801,852 $ 801,852 December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for investment $ — $ — $ 1,079,315 $ 1,079,315 Loans held for investment by the Company — — 43,693 43,693 Loans held for sale by the Company — — 722,355 722,355 Securities available for sale: Asset-backed senior securities and subordinated securities — 109,339 21,090 130,429 CLUB Certificate asset-backed securities — — 89,706 89,706 Corporate debt securities — 14,343 — 14,343 Certificates of deposit — 13,100 — 13,100 Other asset-backed securities — 12,080 — 12,080 Commercial paper — 9,274 — 9,274 U.S. agency securities — 1,995 — 1,995 Total securities available for sale — 160,131 110,796 270,927 Servicing assets — — 89,680 89,680 Total assets $ — $ 160,131 $ 2,045,839 $ 2,205,970 Liabilities: Note, certificates and secured borrowings $ — $ — $ 1,081,466 $ 1,081,466 Payable to Structured Program note and certificate holders — — 40,610 40,610 Loan trailing fee liability — — 11,099 11,099 Total liabilities $ — $ — $ 1,133,175 $ 1,133,175 As presented in the tables above, the Company has elected the fair value option for certain liabilities. Changes in the fair value of these financial liabilities caused by a change in the Company’s risk are reported in other comprehensive income (OCI). For the year ended December 31, 2020, the amount reported in OCI is zero because these financial liabilities are either payable only upon receipt of cash flows from underlying loans or secured by cash collateral. Financial instruments are categorized in the valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. Since the Company’s loans held for investment and related notes, certificates, and secured borrowings, loans held for sale, loan servicing rights, asset-backed securities related to Structured Program transactions, and loan trailing fee liability do not trade in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of these assets and liabilities. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, changes in fair value for assets and liabilities within the Level 2 or Level 3 categories may include changes in fair value that were attributable to observable and unobservable inputs, respectively. The Company primarily uses a discounted cash flow model to estimate the fair value of Level 3 instruments based on the present value of estimated future cash flows. This model uses inputs that are inherently judgmental and reflect our best estimates of the assumptions a market participant would use to calculate fair value. Due to changes in the availability of market observable inputs, the Company transferred $517 thousand of asset-backed securities related to Structured Program transactions out of Level 3 during the year ended December 31, 2020. The Company did not transfer any other assets or liabilities in or out of Level 3 during the years ended December 31, 2020 or 2019. Fair valuation adjustments are recorded through earnings related to Level 3 instruments for the years ended December 31, 2020 and 2019. Certain unobservable inputs may (in isolation) have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. When multiple inputs are used within the valuation techniques, a change in one input in a certain direction may be offset by an opposite change from another input. Loans Held for Investment, Notes, Certificates and Secured Borrowings Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans held for investment, notes, certificates and secured borrowings at December 31, 2020 and 2019: Loans Held for Investment, Notes, Certificates and Secured Borrowings December 31, 2020 December 31, 2019 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 7.6 % 15.0 % 9.4 % 6.0 % 12.0 % 7.9 % Net cumulative expected loss rates (1) 4.3 % 28.1 % 11.2 % 3.6 % 34.9 % 11.9 % Cumulative expected prepayment rates (1) 27.3 % 35.7 % 30.4 % 28.7 % 38.6 % 31.7 % (1) Expressed as a percentage of the original principal balance of the loan, note, certificate or secured borrowing. Significant Recurring Level 3 Fair Value Input Sensitivity At December 31, 2020 and 2019, the discounted cash flow methodology used to estimate the note, certificate and secured borrowings’ fair values used the same projected net cash flows as their related loans. As demonstrated by the following tables, the fair value adjustments for loans held for investment and loans held for sale were largely offset by the corresponding fair value adjustments due to the payment dependent design of the notes, certificates and secured borrowings. Fair Value Reconciliation The following table presents additional information about Level 3 loans held for investment, loans held for sale, and notes, certificates and secured borrowings measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: Loans Held for Investment Loans Held for Sale Notes, Certificates Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2018 $ 2,013,438 $ (130,187) $ 1,883,251 $ — $ — $ — $ 2,033,258 $ (127,383) $ 1,905,875 Purchases 632,962 (21) 632,941 2,490,734 (26,560) 2,464,174 — — — Transfers (to) from loans held for investment and/or loans held for sale (123,036) — (123,036) 122,330 — 122,330 — — — Issuances — — — — — — 632,962 — 632,962 Sales — — — (2,613,064) 24,789 (2,588,275) — — — Principal payments and retirements (1,183,670) — (1,183,670) — — — (1,326,526) 14 (1,326,512) Charge-offs, net of recoveries (190,806) 138,857 (51,949) — — — (190,806) 135,785 (55,021) Change in fair value recorded in earnings — (78,222) (78,222) — 1,771 1,771 — (75,838) (75,838) Balance at December 31, 2019 $ 1,148,888 $ (69,573) $ 1,079,315 $ — $ — $ — $ 1,148,888 $ (67,422) $ 1,081,466 Purchases 314,995 — 314,995 1,564,081 (40,167) 1,523,914 — — — Transfers (to) from loans held for investment and/or loans held for sale (17,916) — (17,916) 17,413 — 17,413 — — — Issuances — — — — — — 314,995 — 314,995 Sales — — — (1,581,494) 52,010 (1,529,484) — — — Principal payments and retirements (687,723) — (687,723) — — — (705,639) — (705,639) Charge-offs, net of recoveries (78,341) 39,641 (38,700) — — — (78,341) 37,161 (41,180) Change in fair value recorded in earnings — (13,285) (13,285) — (11,843) (11,843) — (12,868) (12,868) Balance at December 31, 2020 $ 679,903 $ (43,217) $ 636,686 $ — $ — $ — $ 679,903 $ (43,129) $ 636,774 Loans Invested in by the Company Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans invested in by the Company at December 31, 2020 and 2019: Loans Invested in by the Company December 31, 2020 December 31, 2019 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 8.7 % 16.2 % 9.6 % 6.0 % 11.5 % 7.8 % Net cumulative expected loss rates (1) 5.0 % 28.0 % 8.9 % 3.6 % 36.6 % 10.9 % Cumulative expected prepayment rates (1) 26.8 % 41.0 % 30.5 % 27.3 % 41.0 % 31.6 % (1) Expressed as a percentage of the original principal balance of the loan. Significant Recurring Level 3 Fair Value Input Sensitivity The fair value sensitivity of loans invested in by the Company to adverse changes in key assumptions as of December 31, 2020 and 2019, are as follows: December 31, 2020 December 31, 2019 Fair value of loans invested in by the Company $ 171,856 $ 766,048 Expected weighted-average life (in years) 1.2 1.5 Discount rates 100 basis point increase $ (1,692) $ (9,806) 200 basis point increase $ (3,355) $ (19,410) Expected credit loss rates on underlying loans 10% adverse change $ (1,739) $ (9,558) 20% adverse change $ (3,514) $ (19,136) Expected prepayment rates 10% adverse change $ (454) $ (2,429) 20% adverse change $ (924) $ (4,740) Fair Value Reconciliation The following table presents additional information about Level 3 loans invested in by the Company measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: Loans Held For Investment Loans Held For Sale Total Loans Invested Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at $ 3,518 $ (935) $ 2,583 $ 869,715 $ (29,694) $ 840,021 $ 873,233 $ (30,629) $ 842,604 Purchases 2,993 (2,303) 690 5,343,146 1 5,343,147 5,346,139 (2,302) 5,343,837 Transfers (to) from loans held for investment and/or loans held for sale 49,996 (1,471) 48,525 (49,290) 1,471 (47,819) 706 — 706 Sales — — — (5,122,450) 119,369 (5,003,081) (5,122,450) 119,369 (5,003,081) Principal payments and retirements (5,214) — (5,214) (268,366) — (268,366) (273,580) — (273,580) Charge-offs, net of recoveries (4,251) 2,169 (2,082) (25,361) 23,973 (1,388) (29,612) 26,142 (3,470) Change in fair value recorded in earnings — (809) (809) — (140,159) (140,159) — (140,968) (140,968) Balance at $ 47,042 $ (3,349) $ 43,693 $ 747,394 $ (25,039) $ 722,355 $ 794,436 $ (28,388) $ 766,048 Purchases 1,435 (1,296) 139 1,568,844 (6) 1,568,838 1,570,279 (1,302) 1,568,977 Transfers (to) from loans held for investment and/or loans held for sale 41,934 — 41,934 (41,431) — (41,431) 503 — 503 Sales — — — (1,907,446) 87,723 (1,819,723) (1,907,446) 87,723 (1,819,723) Principal payments and retirements (29,640) — (29,640) (207,483) — (207,483) (237,123) — (237,123) Charge-offs, net of recoveries (4,383) 906 (3,477) (27,278) 25,627 (1,651) (31,661) 26,533 (5,128) Change in fair value recorded in earnings — (2,695) (2,695) — (99,003) (99,003) — (101,698) (101,698) Balance at $ 56,388 $ (6,434) $ 49,954 $ 132,600 $ (10,698) $ 121,902 $ 188,988 $ (17,132) $ 171,856 Asset-Backed Securities Related to Structured Program Transactions Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for asset-backed securities related to Structured Program transactions at December 31, 2020 and 2019: Asset-Backed Securities Related to Structured Program Transactions December 31, 2020 December 31, 2019 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 2.2 % 25.1 % 8.4 % 3.4 % 20.7 % 8.8 % Net cumulative expected loss rates (1) 5.4 % 28.9 % 18.8 % 4.5 % 37.9 % 19.2 % Cumulative expected prepayment rates (1) 6.3 % 30.5 % 24.8 % 17.3 % 35.1 % 29.4 % (1) Expressed as a percentage of the outstanding collateral balance. Significant Recurring Fair Value Input Sensitivity The following tables present adverse changes to the fair value sensitivity of Level 2 and Level 3 asset-backed securities related to Structured Program transactions to changes in key assumptions at December 31, 2020 and 2019: December 31, 2020 Asset-Backed Securities Related to Senior Subordinated Securities CLUB Certificates Fair value of interests held $ 75,372 $ 16,515 $ 50,139 Expected weighted-average life (in years) 0.9 1.4 0.9 Discount rates 100 basis point increase $ (579) $ (161) $ (405) 200 basis point increase $ (1,145) $ (343) $ (800) Expected credit loss rates on underlying loans 10% adverse change $ — $ (1,831) $ (1,528) 20% adverse change $ — $ (3,718) $ (3,095) Expected prepayment rates 10% adverse change $ — $ (791) $ (659) 20% adverse change $ — $ (1,736) $ (1,343) December 31, 2019 Asset-Backed Securities Related to Senior Subordinated Securities CLUB Certificates Fair value of interests held $ 109,339 $ 21,090 $ 89,706 Expected weighted-average life (in years) 1.1 1.4 1.1 Discount rates 100 basis point increase $ (1,050) $ (300) $ (823) 200 basis point increase $ (2,076) $ (513) $ (1,627) Expected credit loss rates on underlying loans 10% adverse change $ — $ (2,162) $ (2,163) 20% adverse change $ — $ (4,273) $ (4,311) Expected prepayment rates 10% adverse change $ — $ (814) $ (654) 20% adverse change $ — $ (1,495) $ (1,279) Fair Value Reconciliation The following table presents additional information about Level 3 asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Fair value at beginning of period $ 110,796 $ 60,279 Additions 27,578 118,721 Redemptions (5,215) (17,900) Transfers (517) — Cash received (72,258) (45,701) Change in unrealized gain (loss) 2,578 (992) Accrued interest 7,075 — Provision for credit loss expense (3,383) — Other-than-temporary impairment — (3,611) Fair value at end of period $ 66,654 $ 110,796 Servicing Assets Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for servicing assets at December 31, 2020 and 2019: Servicing Assets December 31, 2020 December 31, 2019 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rates 4.8 % 16.4 % 9.9 % 2.9 % 14.8 % 8.6 % Net cumulative expected loss rates (1) 4.5 % 26.3 % 12.5 % 3.7 % 36.1 % 12.4 % Cumulative expected prepayment rates (1) 27.0 % 38.9 % 31.2 % 27.5 % 41.8 % 32.5 % Total market servicing rates (% per annum on outstanding principal balance) (2) 0.62 % 0.62 % 0.62 % 0.66 % 0.66 % 0.66 % (1) Expressed as a percentage of the original principal balance of the loan. (2) Includes collection fees estimated to be paid to a hypothetical third-party servicer. Significant Recurring Level 3 Fair Value Input Sensitivity The Company’s selection of the most representative market servicing rates for servicing assets is inherently judgmental. The Company reviews third-party servicing rates for its loans, loans in similar credit sectors, and market servicing benchmarking analyses provided by third-party valuation firms, when available. The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions as of December 31, 2020 and 2019: Servicing Assets December 31, 2020 December 31, 2019 Weighted-average market servicing rate assumptions 0.62 % 0.66 % Change in fair value from: Servicing rate increase by 0.10% $ (7,379) $ (13,978) Servicing rate decrease by 0.10% $ 7,379 $ 13,979 The following table presents the fair value of servicing assets to adverse changes in key assumptions as of December 31, 2020 and 2019: Servicing Assets December 31, 2020 December 31, 2019 Fair value of Servicing Assets $ 56,347 $ 89,680 Discount rates 100 basis point increase $ (455) $ (680) 200 basis point increase $ (911) $ (1,360) Expected loss rates 10% adverse change $ (346) $ (582) 20% adverse change $ (691) $ (1,165) Expected prepayment rates 10% adverse change $ (1,596) $ (2,962) 20% adverse change $ (3,192) $ (5,924) Fair Value Reconciliation The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: Servicing Assets Fair value at December 31, 2018 $ 64,006 Issuances (1) 79,692 Change in fair value, included in investor fees (58,172) Other net changes included in deferred revenue 4,154 Fair value at December 31, 2019 $ 89,680 Issuances (1) 33,990 Change in fair value, included in investor fees (58,730) Other net changes included in deferred revenue (8,593) Fair value at December 31, 2020 $ 56,347 (1) Represents the gains or losses on sales of the related loans. Loan Trailing Fee Liability Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loan trailing fee liability at December 31, 2020 and 2019: Loan Trailing Fee Liability December 31, 2020 December 31, 2019 Minimum Maximum Weighted Minimum Maximum Weighted Discount rates 4.8 % 16.4 % 10.5 % 2.9 % 14.8 % 9.3 % Net cumulative expected loss rates (1) 4.5 % 26.3 % 14.3 % 3.7 % 36.0 % 14.4 % Cumulative expected prepayment rates (1) 27.1 % 39.0 % 31.6 % 28.5 % 41.7 % 33.0 % (1) Expressed as a percentage of the original principal balance of the loan. Significant Recurring Level 3 Fair Value Input Sensitivity The fair value sensitivity of the loan trailing fee liability to adverse changes in key assumptions would not result in a material impact on the Company’s financial position. Fair Value Reconciliation The following table presents additional information about the Level 3 loan trailing fee liability measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Fair value at beginning of period $ 11,099 $ 10,010 Issuances 2,978 7,815 Cash payment of Loan Trailing Fee (7,402) (7,908) Change in fair value, included in Origination and Servicing 819 1,182 Fair value at end of period $ 7,494 $ 11,099 Financial Instruments, Assets, and Liabilities Not Recorded at Fair Value The following tables present the fair value hierarchy for financial instruments, assets, and liabilities not recorded at fair value: December 31, 2020 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Cash and cash equivalents (1) $ 524,963 $ — $ 524,963 $ — $ 524,963 Restricted cash (1) 103,522 — 103,522 — 103,522 Servicer reserve receivable 22 — 22 — 22 Deposits 892 — 892 — 892 Total assets $ 629,399 $ — $ 629,399 $ — $ 629,399 Liabilities: Accrued expenses and other liabilities $ 13,552 $ — $ — $ 13,552 $ 13,552 Accounts payable 3,698 — 3,698 — 3,698 Payable to investors 40,286 — 40,286 — 40,286 Credit facilities and securities sold under repurchase agreements 104,989 — 65,121 39,868 104,989 Total liabilities $ 162,525 $ — $ 109,105 $ 53,420 $ 162,525 (1) Carrying amount approximates fair value due to the short maturity of these financial instruments. December 31, 2019 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Cash and cash equivalents (1) $ 243,779 $ — $ 243,779 $ — $ 243,779 Restricted cash (1) 243,343 — 243,343 — 243,343 Servicer reserve receivable 73 — 73 — 73 Deposits 953 — 953 — 953 Total assets $ 488,148 $ — $ 488,148 $ — $ 488,148 Liabilities: Accrued expenses and other liabilities $ 24,899 $ — $ — $ 24,899 $ 24,899 Accounts payable 10,855 — 10,855 — 10,855 Payable to investors 97,530 — 97,530 — 97,530 Credit facilities and securities sold under repurchase agreements 587,453 — 77,143 510,310 587,453 Total liabilities $ 720,737 $ — $ 185,528 $ 535,209 $ 720,737 (1) Carrying amount approximates fair value due to the short maturity of these financial instruments. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, Net | Property, Equipment and Software, Net Property, equipment and software, net, consist of the following: December 31, 2020 2019 Internally developed software (1) $ 101,953 $ 117,510 Leasehold improvements 35,140 39,315 Computer equipment 27,030 26,669 Purchased software 19,004 11,846 Furniture and fixtures 8,203 9,406 Construction in progress 2,761 4,937 Total property, equipment and software 194,091 209,683 Accumulated depreciation and amortization (97,450) (95,313) Total property, equipment and software, net $ 96,641 $ 114,370 (1) Includes $13.9 million and $21.3 million in development in progress as of December 31, 2020 and 2019, respectively. Depreciation and amortization expense on property, equipment and software was $45.2 million, $51.6 million and $47.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company recorded impairment expense on its internally developed software of $5.7 million, $3.9 million and $3.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company records impairment expense on its leasehold improvements and furniture and fixtures and its internally developed software in “Other general and administrative” and “Engineering and product development” expense, respectively, in the Consolidated Statements of Operations. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: December 31, 2020 2019 Loan servicing assets, at fair value (1) $ 56,347 $ 89,680 Prepaid expenses 16,455 14,862 Accounts receivable 10,243 19,017 Other investments 8,275 8,242 Other 5,410 11,867 Total other assets $ 96,730 $ 143,668 (1) Loans underlying loan servicing rights had a total outstanding principal balance of $10.1 billion and $14.1 billion as of December 31, 2020 and 2019, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of customer relationships. The gross and net carrying values and accumulated amortization as of December 31, 2020 and 2019, were as follows: December 31, 2020 2019 Gross Carrying Value $ 39,500 $ 39,500 Accumulated Amortization (28,073) (24,951) Net Carrying Value $ 11,427 $ 14,549 The customer relationship intangible assets are amortized on an accelerated basis over a 14 year period. Amortization expense associated with intangible assets for the years ended December 31, 2020, 2019 and 2018 was $3.1 million, $3.5 million and $3.9 million, respectively. The expected future amortization expense for intangible assets as of December 31, 2020, is as follows: Year Ending December 31, 2021 $ 2,746 2022 2,370 2023 1,994 2024 1,618 2025 1,241 Thereafter 1,458 Total $ 11,427 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following: December 31, 2020 2019 Accrued compensation $ 28,805 $ 30,484 Contingent liabilities (1) 21,592 16,000 Accrued expenses 14,382 36,797 Transaction fee refund reserve 14,119 25,541 Loan trailing fee liability, at fair value 7,494 11,099 Deferred revenue 4,923 13,688 Other 10,142 9,027 Total accrued expenses and other liabilities $ 101,457 $ 142,636 (1) See “ Note 19. Commitments and Contingencies ” for further information. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) represents other cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) were as follows: Year Ended December 31, 2020 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ 2,044 $ (5) $ 2,049 Other comprehensive income (loss) $ 2,044 $ (5) $ 2,049 Year Ended December 31, 2019 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ (526) $ 216 $ (742) Other comprehensive income (loss) $ (526) $ 216 $ (742) Year Ended December 31, 2018 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ 252 $ 83 $ 169 Other comprehensive income (loss) $ 252 $ 83 $ 169 Accumulated other comprehensive income (loss) balances were as follows: Total Balance at December 31, 2018 $ 157 Change in net unrealized gain (loss) on securities available for sale (742) Less: Other comprehensive income (loss) attributable to noncontrolling interests (20) Balance at December 31, 2019 $ (565) Change in net unrealized gain (loss) on securities available for sale 2,049 Balance at December 31, 2020 $ 1,484 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facilities and Securities Sold Under Repurchase Agreements The Company may enter into arrangements in the ordinary course of business pursuant to which the Company can incur indebtedness. Below is a description of certain of these arrangements: Warehouse Credit Facilities Through wholly-owned subsidiaries, the Company entered into secured warehouse credit facilities (Warehouse Facility or Facilities), to finance the Company’s personal loans and auto refinance loans and to pay fees and expenses related to the applicable facilities. Each subsidiary entered into a credit agreement and security agreement with a commercial bank as administrative agent and a national banking association as collateral trustee and paying agent. The creditors of the Warehouse Facilities had no recourse to the general credit of the Company. All previously existing Warehouse Facilities were fully repaid and terminated as of December 31, 2020. As of December 31, 2019, the Company had $387.3 million in aggregate debt outstanding under the Warehouse Facilities, with collateral consisting of loans at fair value of $551.5 million included in “Loans held for sale by the Company at fair value,” and restricted cash of $25.1 million included in the Consolidated Balance Sheets. At December 31, 2019, borrowings under these facilities bore weighted-average interest rates ranging from 3.76% to 4.42%. The Company paid monthly unused commitment fees ranging from 0.375% to 1.250% per annum on the average undrawn portion available. Revolving Credit Facility In December 2015, the Company entered into a credit and guaranty agreement and a pledge and security agreement with several lenders and a financial services company, as collateral agent, for an aggregate $120.0 million secured revolving credit facility (Revolving Facility). The Company had the ability to borrow under the Revolving Facility until December 17, 2020. This facility matured and was repaid in the fourth quarter of 2020. The Company had $60.0 million in debt outstanding under the Revolving Facility as of December 31, 2019. At December 31, 2019, borrowings under the Revolving Facility bore a weighted-average interest rate of 4.46%. The Company paid a quarterly commitment fee ranging from 0.25% to 0.375% per annum, depending on the Company’s total net leverage ratio, on the average undrawn portion available under the Revolving Facility. Repurchase Agreements The Company entered into repurchase agreements pursuant to which the Company sold securities (subject to an obligation to repurchase such securities at a specified future date and price) in exchange for cash, primarily to finance securities retained from the Company’s Structured Program transactions. As of December 31, 2020 and 2019, the Company had $105.0 million and $140.2 million in aggregate debt outstanding under its repurchase agreements, respectively, which is amortized over time through regular principal and interest payments collected from the pledged securities, and at December 31, 2020, have contractual repurchase dates ranging from September 2022 to March 2028. The contractual repurchase dates correspond to either a set repurchase schedule or to the maturity dates of the underlying securities, which have a remaining weighted-average estimated life from 0.9 to 1.4 years. At December 31, 2020 and 2019, the repurchase agreements bear interest rates ranging from 3.05% to 4.00% and 3.41% to 4.40%, respectively, which are either fixed or based on a benchmark of the three-month LIBOR rate or the weighted-average interest rate of the securities sold plus a spread. Securities sold are included in “Credit facilities and securities sold under repurchase agreements” on the Consolidated Balance Sheets. Underlying securities retained and pledged as collateral under repurchase agreements were $133.5 million and $174.8 million, respectively, at December 31, 2020 and 2019. Payable to Structured Program Note and Certificate Holders The Company consolidates certain sponsored Structured Program transactions through master trusts comprised of unsecured personal whole loans. The trusts sold certificate participations and securities to third-party investors in an amount equal to approximately 95% of the loans. The remaining certificate participations, securities, and residual interests were retained by the Company. The Company is the primary beneficiary of the trusts, which are consolidated. As of December 31, 2020 and 2019, the certificate participations and securities held by third-party investors of $152.8 million and $40.6 million, respectively, are included in “Payable to Structured Program note and certificate holders at fair value” in the Consolidated Balance Sheets and were secured by loans held for investment and loans held for sale by the Company at fair value of $148.3 million and $40.3 million and restricted cash of $13.5 million and $2.9 million included in the Consolidated Balance Sheets at December 31, 2020 and 2019, respectively. |
Secured Borrowings
Secured Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Secured Borrowings | Securitizations and Variable Interest Entities VIE Assets and Liabilities The following tables provide the classifications of assets and liabilities on the Company’s Consolidated Balance Sheets for its transactions with consolidated and unconsolidated VIEs at December 31, 2020 and 2019. Additionally, the assets and liabilities in the tables below exclude intercompany balances that eliminate in consolidation: December 31, 2020 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 15,983 $ — $ 15,983 Securities available for sale at fair value — 142,026 142,026 Loans held for investment at fair value 52,620 — 52,620 Loans held for investment by the Company at fair value 50,102 — 50,102 Loans held for sale by the Company at fair value 98,190 — 98,190 Accrued interest receivable 1,134 87 1,221 Other assets 136 32,778 32,914 Total assets $ 218,165 $ 174,891 $ 393,056 Liabilities Accrued interest payable $ 721 $ — $ 721 Accrued expenses and other liabilities 8 — 8 Notes, certificates and secured borrowings at fair value 52,620 — 52,620 Payable to Structured Program note and certificate holders at fair value 152,808 — 152,808 Total liabilities 206,157 — 206,157 Total net assets $ 12,008 $ 174,891 $ 186,899 December 31, 2019 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 30,046 $ — $ 30,046 Securities available for sale at fair value — 220,135 220,135 Loans held for investment at fair value 197,842 — 197,842 Loans held for investment by the Company at fair value 40,251 — 40,251 Loans held for sale by the Company at fair value 551,455 — 551,455 Accrued interest receivable 4,431 877 5,308 Other assets 1,359 52,098 53,457 Total assets $ 825,384 $ 273,110 $ 1,098,494 Liabilities Accrued interest payable $ 3,185 $ — $ 3,185 Accrued expenses and other liabilities 244 — 244 Notes, certificates and secured borrowings at fair value 197,842 — 197,842 Payable to Structured Program note and certificate holders at fair value 40,610 — 40,610 Credit facilities and securities sold under repurchase agreements 387,251 — 387,251 Total liabilities 629,132 — 629,132 Total net assets $ 196,252 $ 273,110 $ 469,362 Consolidated VIEs The Company consolidates VIEs when it is deemed to be the primary beneficiary. See “ Note 2. Summary of Significant Accounting Policies ” for additional information. LC Trust The Company established the LC Trust for the purpose of acquiring and holding loans for the sole benefit of certain investors that have purchased trust certificates issued by the LC Trust. The Company is obligated to ensure that the LC Trust meets minimum capital requirements with respect to funding the administrative activities and maintaining the operations of the LC Trust. Consolidated Trusts The Company establishes trusts to facilitate the sale of loans and issuance of senior and subordinated securities. If the Company is the primary beneficiary of the trust, it is a consolidated VIE and will reflect senior and subordinated securities held by third parties as a “Payable to Structured Program note and certificate holders at fair value” in the Company’s Consolidated Balance Sheets. If subsequently the Company is not the primary beneficiary of the trust, the Company will deconsolidate the VIE. See “ Note 2. Summary of Significant Accounting Policies ” and “ Note 14. Debt ” for additional information. Warehouse Credit Facilities The Company established certain entities (deemed to be VIEs) to enter into warehouse credit facilities for the purpose of purchasing loans from LendingClub. See “ Note 14. Debt ” for additional information. The following tables present a summary of financial assets and liabilities from the Company’s involvement with consolidated VIEs at December 31, 2020 and 2019: December 31, 2020 Assets Liabilities Net Assets LC Trust $ 55,447 $ (53,068) $ 2,379 Consolidated trusts 162,460 (153,089) 9,371 Warehouse credit facility 258 — 258 Total consolidated VIEs $ 218,165 $ (206,157) $ 12,008 December 31, 2019 Assets Liabilities Net Assets LC Trust $ 201,696 $ (199,520) $ 2,176 Consolidated trusts 43,300 (40,687) 2,613 Warehouse credit facilities 580,388 (388,925) 191,463 Total consolidated VIEs $ 825,384 $ (629,132) $ 196,252 The creditors of the VIEs above have no recourse to the general credit of the Company as the primary beneficiary of the VIEs and the liabilities of the VIEs can only be settled by the respective VIE’s assets. Unconsolidated VIEs The Company’s transactions with unconsolidated VIEs include asset-backed securitizations, Certificate Program transactions and loan sale transactions of unsecured personal loans. The Company has various forms of involvement with VIEs, including servicing of loans and holding senior or subordinated residual interests in the VIEs. The accounting for these transactions is based on a primary beneficiary analysis to determine whether the underlying VIEs should be consolidated. If the VIEs are not consolidated and the transfer of the loans from the Company to the VIE meets sale accounting criteria, then the Company will recognize a gain or loss on sales of loans. The Company considers continued involvement in an unconsolidated VIE insignificant if it is the sponsor and servicer and does not hold other significant variable interests. In these instances, the Company’s involvement with the VIE is in the role as an agent and without significant participation in the economics of the VIE. The Company enters into separate servicing agreements with the VIEs and holds at least 5% of the beneficial interests issued by the VIEs to comply with regulatory risk retention rules. The beneficial interests retained by the Company consist of senior securities and subordinated securities and are accounted for as securities available for sale. In connection with these transactions, we make certain customary representations, warranties and covenants. See “ Note 2. Summary of Significant Accounting Policies ” for additional information. Investment Fund The Company has an equity investment in a private fund (Investment Fund) that participates in a family of funds with other unrelated third parties. This family of funds purchases assets from third parties unrelated to the Company and historically purchased whole loans and interests in loans from the Company. As of December 31, 2020, the Company had an ownership interest of approximately 22% in the Investment Fund. The Company’s investment is deemed to be a variable interest in the Investment Fund because the Company shares in the expected returns and losses of the Investment Fund. The Company has requested a full redemption of its investment in the Investment Fund. The Investment Fund provides audited financial statements annually and periodic investment statements throughout each calendar year on a delayed basis, which are used by the Company to evaluate performance and recoverability of our investment. At December 31, 2020, the Company’s investment was $7.8 million, which is recognized in “Other assets” on the Company’s Consolidated Balance Sheets. The following tables summarize unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary at December 31, 2020 and 2019: December 31, 2020 Carrying Value Total VIE Assets Securities Available for Sale Accrued Interest Receivable Other Assets Net Assets Unconsolidated Trusts $ 1,267,611 $ 57,511 $ 48 $ 9,606 $ 67,165 Certificate Program 1,931,429 84,515 39 15,397 99,951 Investment Fund 34,376 — — 7,775 7,775 Total unconsolidated VIEs $ 3,233,416 $ 142,026 $ 87 $ 32,778 $ 174,891 December 31, 2020 Maximum Exposure to Loss Securities Available for Sale Accrued Interest Receivable Other Assets Total Exposure Unconsolidated Trusts $ 57,511 $ 48 $ 9,606 $ 67,165 Certificate Program 84,515 39 15,397 99,951 Investment Fund — — 7,775 7,775 Total unconsolidated VIEs $ 142,026 $ 87 $ 32,778 $ 174,891 December 31, 2019 Carrying Value Total VIE Assets Securities Available for Sale Accrued Interest Receivable Other Assets Net Assets Unconsolidated Trusts $ 1,909,219 $ 93,881 $ 362 $ 18,768 $ 113,011 Certificate Program 2,585,957 126,254 515 25,588 152,357 Investment Fund 34,170 — — 7,742 7,742 Total unconsolidated VIEs $ 4,529,346 $ 220,135 $ 877 $ 52,098 $ 273,110 December 31, 2019 Maximum Exposure to Loss Securities Available for Sale Accrued Interest Receivable Other Assets Total Exposure Unconsolidated Trusts $ 93,881 $ 362 $ 18,768 $ 113,011 Certificate Program 126,254 515 25,588 152,357 Investment Fund — — 7,742 7,742 Total unconsolidated VIEs $ 220,135 $ 877 $ 52,098 $ 273,110 “Total VIE Assets” represents the remaining principal balance of loans held by unconsolidated VIEs with respect to Unconsolidated Trusts, Certificate Program transactions, and the net assets held by the Investment Fund using the most current information available. “Securities Available for Sale,” “Accrued Interest Receivable,” and “Other Assets” are the balances in the Company’s Consolidated Balance Sheets related to its involvement with the unconsolidated VIEs. “Other Assets” includes the Company’s servicing assets and servicing receivables and the Company’s equity investment with respect to the Investment Fund. “Total Exposure” refers to the Company’s maximum exposure to loss from its involvement with unconsolidated VIEs. It represents estimated loss that would be incurred under severe, hypothetical circumstances, for which the Company believes the possibility is extremely remote, such as where the value of interests and any associated collateral declines to zero. Accordingly, this required disclosure is not an indication of expected losses. The following table summarizes activity related to the Unconsolidated Trusts and Certificate Program trusts, with the transfers accounted for as a sale on the Company’s consolidated financial statements for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Unconsolidated Trusts Unconsolidated Certificate Unconsolidated Trusts Unconsolidated Certificate Principal derecognized from loans securitized or sold (1) $ 255,203 $ 971,738 $ 1,553,847 $ 2,868,709 Net gains (losses) recognized from loans securitized or sold $ (20) $ 7,897 $ 4,809 $ 32,417 Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement (2) $ 12,707 $ 35,836 $ 75,924 $ 140,825 Cash proceeds from loans securitized or sold $ 237,764 $ 598,694 $ 1,212,521 $ 2,555,713 Cash proceeds from servicing and other administrative fees on loans securitized or sold $ 17,684 $ 26,822 $ 16,961 $ 17,071 Cash proceeds for interest received on senior securities and subordinated securities $ 4,559 $ 8,251 $ 5,022 $ 7,717 (1) Included non-cash purchase and sale of loans requested by investors to facilitate a Structured Program transaction during the third quarter of 2020. (2) For Structured Program transactions, the Company retained asset-backed senior securities of $26.3 million and $98.7 million, CLUB Certificate asset-backed securities of $18.3 million and $101.3 million, and asset-backed subordinated securities of $4.0 million and $16.8 million for the years ended December 31, 2020 and 2019, respectively. Off-Balance Sheet Loans Off-balance sheet loans primarily relate to Structured Program transactions for which the Company has some form of continuing involvement, including as servicer. Delinquent loans are comprised of loans 31 days or more past due, including non-accrual loans. Loans to eligible borrowers participating in Skip-a-Pay are not considered delinquent during the commensurate period the loan is extended. For loans related to Structured Program transactions where servicing is the only form of continuing involvement, the Company would only experience a loss if it was required to repurchase a loan due to a breach in representations and warranties associated with its loan sale or servicing contracts. As of December 31, 2020, the aggregate unpaid principal balance of the off-balance sheet loans pursuant to Structured Program transactions was $3.2 billion, of which $94.8 million was attributable to off-balance sheet loans that were 31 days or more past due. As of December 31, 2019, the aggregate unpaid principal balance of the off-balance sheet loans pursuant to Structured Program transactions was $4.4 billion, of which $145.6 million was attributable to off-balance sheet loans that were 31 days or more past due. Retained Interests from Unconsolidated VIEs The Company and other investors in the subordinated interests issued by trusts and Certificate Program trusts have rights to cash flows only after the investors holding the senior securities issued by the trusts have first received their contractual cash flows. The investors and the trusts have no direct recourse to the Company’s assets, and holders of the securities issued by the trusts can look only to the assets of the securitization trusts that issued their securities for payment. The beneficial interests held by the Company are subject principally to the credit and prepayment risk stemming from the underlying unsecured personal whole loans. See “ Note 8. Fair Value of Assets and Liabilities ” for additional information on the fair value sensitivity of asset-backed securities related to Structured Program transactions. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock The Company authorized 10,000,000 shares of preferred stock with a par value of $0.01 per share. In February 2020, the Company filed Certificates of Designations with the Secretary of State of Delaware to designate, of the total authorized shares of preferred stock, 1,200,000 shares of Series A Preferred Stock and 600,000 shares of Series B Preferred Stock. As of December 31, 2020, there were 43,000 shares of Series A Preferred Stock outstanding and no shares of Series B Preferred Stock outstanding. Each share of Series A Preferred Stock will automatically convert into 100 shares of LendingClub common stock upon a permissible transfer to an unaffiliated third party (subject to adjustment and the other terms described in its respective Certificate of Designations), provided that upon such conversion, the holder, together with its affiliates, will not own or control, in the aggregate, more than 9.9% of the Company’s outstanding common stock. A permissible transfer is a transfer (a) to the Company; (b) in a widespread public distribution; (c) in which no one transferee (or group of associated transferees) would receive 2% or more of any class of the Company’s voting securities then outstanding (including pursuant to a related series of such transfers); or (d) to a transferee that would control more than 50% of the Company voting securities (not including voting securities such person is acquiring from the transferor). The shares of Series A Preferred Stock have no voting rights, except as otherwise required by the General Corporation Law of the State of Delaware. The Series A Preferred Stock ranks pari passu with the common stock, and junior to any other series of preferred stock that is issued by the Company with respect to rights upon liquidation, winding up and dissolution and as to rights to dividends, provided, however, that in case of a liquidation, winding up or dissolution the Series A Preferred Stock has a right to receive $0.01 per share before any payment is made to the holders of LendingClub common stock, and will thereafter participate on a pari passu basis with the common stock. The Series B Preferred Stock, if issued, will (a) be nonredeemable; (b) have a minimum preferential quarterly dividend of $0.001 per share or any higher per share dividend declared on LendingClub common stock; (c) in the event of a liquidation be entitled to receive a preferred liquidation payment equal to $0.001 per share plus the per share amount paid in respect of a share of LendingClub common stock; (d) will have one vote, voting together with LendingClub common stock; and (e) in the event of any merger, consolidation or other transaction in which shares of LendingClub common stock are exchanged, will be entitled to receive the per share amount paid in respect of each share of LendingClub common stock. The rights of holders of the Series B Preferred Stock with respect to dividends, liquidation and voting, and in the event of mergers and consolidations, are protected by customary antidilution provisions. There are no issued Series B Preferred Stock. Issuance of Series A Preferred Stock in Exchange for Common Stock In February 2020, the Company and Radius Bancorp, Inc. (Radius) entered into an Agreement and Plan of Merger (Merger Agreement), by and among the Company, a wholly owned-subsidiary of the Company, and Radius, pursuant to which the Company will acquire Radius and thereby acquire its wholly-owned subsidiary, Radius Bank (the Merger). In connection with the Merger and in order to facilitate compliance with federal banking regulations by Shanda, in February 2020, the Company also entered into a Share Exchange Agreement (the Exchange Agreement) pursuant to which Shanda exchanged all of its shares of the Company’s common stock (with voting rights), or 19,562,881 shares, for Series A Preferred Stock, or 195,628 shares, and a one-time cash payment of $50.2 million. On the date of the Exchange Agreement, the effective conversion price for the Series A Preferred Stock was less than the fair value of the common stock, resulting in a beneficial conversion feature that the Company recognized as a deemed dividend to the preferred stockholders and, accordingly, an adjustment to net loss to arrive at net loss attributable to common stockholders. As a result, the Company recorded the deemed dividend of $50.2 million within accumulated deficit for the quarter ended March 31, 2020. There were no other deemed dividends recorded during 2020. Shareholder Protection Agreement In February 2020, the board of directors of the Company adopted a Temporary Bank Charter Protection Agreement (Protection Agreement) and simultaneously declared a dividend of one right for each outstanding share of LendingClub common stock (each such right, a Common Right) and one right for each outstanding share of Series A Preferred Stock (each such right, a Series A Preferred Right and, together with the Common Rights, the Rights) to stockholders of record at the close of business on March 19, 2020. The Protection Agreement provides for the dilution of any person or group of persons that acquires: (i) 25% or more equity interest in the Company, or (ii) 10.0% or more of any class of the Company’s voting securities. In accordance with its terms, the Protection Agreement expired upon the closing of the Merger on February 1, 2021. Retirement of treasury stock In the first quarter 2020, we retired 467,049 shares, or $19.6 million, of common stock previously held as treasury shares. The Company also retired the 19,562,881 shares of common stock acquired from Shanda as part of the Exchange Agreement. These retirements reduced the number of issued shares of common stock by that same amount. Under the applicable state law, these shares resume the status of authorized and unissued shares upon retirement. Since the repurchase price was lower than the original issuance price, the excess of share repurchase price over par value was recorded to additional paid-in capital. |
Employee Incentive Plans
Employee Incentive Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Incentive Plans | Employee Incentive Plans The Company’s 2014 Equity Incentive Plan (EIP) provides for granting awards, including RSUs, PBRSUs and stock options to employees, officers and directors. Common Stock Reserved for Future Issuance As of December 31, 2020 and 2019, the Company had shares of common stock reserved for future issuance as follows: December 31, 2020 2019 Available for future RSU, PBRSU and stock option grants 12,552,761 12,861,058 Unvested RSUs, PBRSUs and stock options outstanding 14,631,526 12,323,868 Available for ESPP (1) 4,134,033 3,123,203 Total reserved for future issuance 31,318,320 28,308,129 (1) In connection with the Company’s cost structure simplification efforts, future purchases through the Company’s employee stock purchase plan ( ESPP ) were suspended effective upon the completion of the offering period on May 10, 2019. Stock-based Compensation Stock-based compensation expense was as follows for the periods presented: Year Ended December 31, 2020 2019 2018 RSUs and PBRSUs $ 60,745 $ 70,772 $ 66,005 Stock options 788 2,383 7,387 ESPP — 484 1,695 Total stock-based compensation expense $ 61,533 $ 73,639 $ 75,087 The following table presents the Company’s stock-based compensation expense recorded in the Consolidated Statements of Operations: Year Ended December 31, 2020 2019 2018 Sales and marketing $ 4,104 $ 6,095 $ 7,362 Origination and servicing 2,689 3,155 4,322 Engineering and product development 13,411 19,860 20,478 Other general and administrative 41,329 44,529 42,925 Total stock-based compensation expense $ 61,533 $ 73,639 $ 75,087 The Company capitalized $5.1 million, $6.3 million and $9.1 million of stock-based compensation expense associated with developing software for internal use during the years ended December 31, 2020, 2019 and 2018, respectively. Restricted Stock Units The following table summarizes the activities for the Company’s RSUs during the year ended December 31, 2020: Number Weighted- Unvested at December 31, 2019 9,597,404 $ 16.78 Granted 11,247,846 $ 9.27 Vested (4,139,425) $ 15.66 Forfeited/expired (5,310,713) $ 13.61 Unvested at December 31, 2020 11,395,112 $ 11.26 During the year ended December 31, 2020, the Company granted 11,247,846 RSUs with an aggregate fair value of $104.3 million. As of December 31, 2020, there was $120.0 million of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over the next 2.8 years. Performance-based Restricted Stock Units PBRSUs are restricted stock unit awards that are earned and eligible for vesting (if applicable) based upon the achievement of certain pre-established performance metrics over a specific performance period. Our PBRSU awards have a separate market-based component and a performance-based component. Certain of our PBRSU awards have additional time-based vesting for any earned shares. With respect to PBRSU awards with market-based metrics, the compensation expense of the award is fixed at the time of grant (incorporating the probability of achieving the market-based metrics), not adjusted for actual performance and expensed over the performance and vesting period. With respect to PBRSU awards with performance-based metrics, the compensation expense of the award is set at the time of grant (assuming a target level of achievement), adjusted for actual performance during the performance period and expensed over the performance and vesting period. The following table summarizes the activities for the Company’s PBRSUs during the year ended December 31, 2020: Number Weighted- Unvested at December 31, 2019 471,589 $ 16.94 Granted 1,424,438 $ 4.67 Vested (181,956) $ 17.34 Forfeited/expired (1) (272,760) $ 13.85 Unvested at December 31, 2020 1,441,311 $ 5.31 (1) Primarily relates to the portion of PBRSUs granted in 2019 that were unearned as a result of not achieving certain pre-established performance metrics during the performance period. For the years ended December 31, 2020, 2019 and 2018, the Company recognized $2.8 million, $3.9 million and $2.8 million in stock-based compensation expense related to PBRSUs, respectively. As of December 31, 2020, there was $3.8 million of unrecognized compensation cost related to unvested PBRSUs, which is expected to be recognized over the next 2.1 years. Stock Options The following table summarizes the activities for the Company’s stock options during 2020: Number of Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) Outstanding at December 31, 2019 2,254,888 $ 29.27 Exercised (150,473) $ 0.75 Forfeited/Expired (309,299) $ 38.92 Outstanding at December 31, 2020 1,795,116 $ 29.99 3.66 $ 2,882 Exercisable at December 31, 2020 1,795,116 $ 29.99 3.66 $ 2,882 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company’s closing stock price of $10.56 as reported on the New York Stock Exchange on December 31, 2020. The aggregate intrinsic value of options exercised was $1.8 million, $5.9 million and $1.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. The total fair value of stock options vested for the years ended December 31, 2020, 2019 and 2018 was $1.0 million, $2.8 million and $9.8 million, respectively. As of December 31, 2020, there was no unrecognized compensation cost related to outstanding stock options. There were no stock options granted during the years ended December 31, 2020, 2019 and 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income tax expense (benefit) less income (loss) attributable to noncontrolling interests was $(187.6) million, $(30.9) million and $(128.3) million for the years ended December 31, 2020, 2019 and 2018, respectively. Income tax expense (benefit) consisted of the following for the periods shown below: Year Ended December 31, 2020 2019 2018 Current: Federal $ (1) $ (141) $ (57) State (78) (60) 100 Total current tax expense (benefit) $ (79) $ (201) $ 43 Deferred: Federal $ — $ — $ — State — — — Total deferred tax expense (benefit) $ — $ — $ — Income tax expense (benefit) $ (79) $ (201) $ 43 Income tax benefit for the year ended December 31, 2020 was primarily attributable to current state income taxes. Income tax benefit for the year ended December 31, 2019 was primarily attributable to the tax effects of unrealized gains recorded to other comprehensive income associated with the Company’s available for sale portfolio. Income tax expense for the year ended December 31, 2018 was primarily attributable to current state income taxes, partially offset by the tax effects of unrealized gains recorded to other comprehensive income associated with the Company’s available for sale portfolio. A reconciliation of the income taxes expected at the statutory federal income tax rate and income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018, is as follows: Year Ended December 31, 2020 2019 2018 Tax at federal statutory rate $ (39,399) $ (6,499) $ (26,936) State tax, net of federal tax benefit (81) (60) 100 Stock-based compensation expense 8,044 4,773 6,559 Research and development tax credits (994) (2,336) (7,839) Change in valuation allowance 29,728 (802) 19,140 Change in unrecognized tax benefit 497 1,168 3,920 Non-deductible expenses 2,278 3,250 5,143 Other (152) 305 (44) Income tax expense (benefit) $ (79) $ (201) $ 43 The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 were: December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 163,381 $ 118,090 Stock-based compensation 10,218 11,480 Reserves and accruals 15,652 23,008 Operating lease liabilities 28,032 33,824 Goodwill 17,375 19,818 Intangible assets 3,151 3,074 Tax credit carryforwards 18,215 16,679 Other 868 498 Total deferred tax assets 256,892 226,471 Valuation allowance (211,228) (169,526) Deferred tax assets – net of valuation allowance $ 45,664 $ 56,945 Deferred tax liabilities: Internally developed software $ (16,956) $ (20,225) Servicing fees (2,780) (4,389) Operating lease assets (22,048) (28,224) Change in tax method (1,769) (3,988) Other (2,111) (119) Total deferred tax liabilities $ (45,664) $ (56,945) Deferred tax asset (liability) – net $ — $ — The Company continues to recognize a full valuation allowance against net deferred tax assets. This determination was based on the assessment of the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. As of December 31, 2020 and 2019, the valuation allowance was $211.2 million and $169.5 million, respectively. As of December 31, 2020, the Company had federal and state net operating loss (NOL) carryforwards of approximately $551.5 million and $642.2 million, respectively, to offset future taxable income. The federal and majority of state NOL carryforwards start expiring in 2026 and 2028, respectively. Federal and certain state NOL carryforwards generated after 2017 carryforward indefinitely. Additionally, as of December 31, 2020, the Company had federal and state research and development credit carryforwards of $17.3 million and $18.6 million, respectively. The federal research credit carryforwards will expire beginning in 2026 and the state research credits may be carried forward indefinitely. As of December 31, 2020, the Company also had other state tax credit carryforwards of $2.2 million, which will expire beginning in 2021. In general, a corporation’s ability to utilize its NOL and research and development credit carryforwards may be substantially limited due to the ownership change limitations as required by Section 382 and 383 of the Internal Revenue Code of 1986, as amended (Code), as well as similar state provisions. The federal and state Section 382 and 383 limitations may limit the use of a portion of the Company’s domestic NOL and tax credit carryforwards. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities. A reconciliation of the beginning and ending balance of total unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018, is as follows: Year Ended December 31, 2020 2019 2018 Beginning balance $ 15,998 $ 13,377 $ 7,784 Gross increase for tax positions related to prior years — — 2,744 Gross increase for tax positions related to the current year 1,628 2,621 2,849 Ending balance $ 17,626 $ 15,998 $ 13,377 If the unrecognized tax benefit as of December 31, 2020 is recognized, there will be no effect on the Company’s effective tax rate as the tax benefit would increase a deferred tax asset, which is currently offset with a full valuation allowance. As of December 31, 2020, the Company had no accrued interest and penalties related to unrecognized tax benefits. The Company does not expect any significant increases or decreases to its unrecognized benefits within the next twelve months. The Company files income tax returns in the United States and various state jurisdictions. As of December 31, 2020, the Company’s federal tax returns for 2016 and earlier, and the state tax returns for 2015 and earlier were no longer subject to examination by the taxing authorities. However, tax periods closed in a prior period may be subject to audit and re-examination by tax authorities for which tax carryforwards are utilized in subsequent years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for its headquarters in San Francisco, California, as well as additional office space for its origination and servicing operations in the Salt Lake City area, Utah, and Westborough, Massachusetts. As of December 31, 2020, the lease agreements have remaining lease terms ranging from approximately one year to eight years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. In addition, the Company is the sublessor of a portion of its office space in San Francisco, with lease terms of one year to two years. As of December 31, 2020, the Company pledged $0.8 million of cash and $5.5 million in letters of credit as security deposits in connection with its lease agreements. The Company entered into lease amendments during the second quarter of 2020 due to COVID-19. The Company elected to remeasure the lease liability using the original discount rate with an adjustment to the ROU asset by the amount of the remeasurement. This accounting policy election did not have a material impact to the Company’s financial position, results of operations, cash flows, or disclosures. The Company reviewed operating lease ROU assets for impairment. In June 2020, the Company terminated one of its operating leases resulting in a reduction in the operating lease liability of $6.1 million and a corresponding reduction in the operating lease asset of $5.3 million. For the year ending December 31, 2020, the Company recognized impairment expense of $3.6 million, net, for several of its operating lease assets, included in “Other general and administrative expense” on the Company’s Consolidated Statement of Operations. No impairment expense was recorded during the year ended December 31, 2019. Balance sheet information as of December 31, 2020 and 2019 related to leases was as follows: ROU Assets and Lease Liabilities December 31, 2020 December 31, 2019 Operating lease assets $ 74,037 $ 93,485 Operating lease liabilities (1) $ 94,538 $ 112,344 (1) The difference between operating lease assets and operating lease liabilities is the unamortized balance of deferred rent. Components of net lease costs for the years ended December 31, 2020, 2019 and 2018, were as follows: Year Ended December 31, Net Lease Costs Income Statement Classification 2020 2019 2018 Operating lease costs (1) Other general and administrative expense $ (17,346) $ (19,502) $ (17,183) Sublease revenue Other revenue 6,146 4,637 397 Net lease costs $ (11,200) $ (14,865) $ (16,786) (1) Includes variable lease costs of $1.5 million, $1.6 million and $0.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. Supplemental cash flow information related to the Company’s operating leases for the year ended December 31, 2020 was as follows: Year Ended December 31, 2020 2019 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ 84 $ 15,277 (1) Represents non-cash activity and, accordingly, is not reflected in the Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease right-of-use asset. The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of December 31, 2020 were as follows: Operating Lease Sublease Net 2021 $ 19,271 $ (6,767) $ 12,504 2022 14,134 (2,918) 11,216 2023 10,761 — 10,761 2024 11,072 — 11,072 2025 11,393 — 11,393 Thereafter 56,990 — 56,990 Total lease payments (1) $ 123,621 $ (9,685) $ 113,936 Discount effect 29,083 Present value of future minimum lease payments $ 94,538 (1) As of December 31, 2020, the Company entered into an additional operating lease which had not yet commenced and is therefore not part of the table above nor included in the lease right-of-use asset and liability. This lease commenced when the Company obtained possession of the underlying asset, which was on January 1, 2021. The lease term is 8.25 years and has an undiscounted future rent payment of approximately $8.6 million. The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows: Lease Term and Discount Rate December 31, 2020 Weighted-average remaining lease term (in years) 8.96 Weighted-average discount rate 5.76 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments For discussion regarding the Company’s operating lease commitments, see “ Note 18. Leases. ” Loan Purchase Obligation Under the Company’s loan account program with WebBank, which served as the Company’s primary issuing bank for loans facilitated through the Company’s platform, WebBank retained ownership of the loans it originated for two business days after origination. As part of this arrangement, the Company is committed to purchase any loans that have been fully approved at par plus accrued interest, at the conclusion of the two business days. As of December 31, 2020 and 2019, the Company was committed to purchase loans with an outstanding principal balance of $13.8 million and $91.3 million at par, respectively. Loan Repurchase Obligations The Company is generally required to repurchase loans or interests therein in the event of identity theft or certain other types of fraud on the part of the borrower or education and patient service providers. The Company may also repurchase loans or interests therein in connection with certain customer accommodations. In connection with certain whole loan and Certificate Program sales, as well as to facilitate access to securitization markets, the Company has agreed to repurchase loans if representations and warranties made with respect to such loans are breached under certain circumstances. In the case of certain securitization transactions, the Company has also agreed to repurchase or substitute loans for which a borrower fails to make the first payment due under a loan. The Company believes such provisions are customary and consistent with institutional loan and securitization market standards. In addition to and distinct from the repurchase obligations described in the preceding paragraph, the Company performs certain administrative functions for a variety of retail and institutional investors, including executing, without discretion, loan investments as directed by the investor. To the extent loans do not meet the investor’s investment criteria at the time of issuance, or are transferred to the investor as a result of a system error by the Company, the Company repurchases such loans or interests therein at par. As a result of the loan repurchase obligations described above, the Company repurchased $3.3 million, $5.5 million and $4.0 million in loans or interests therein during 2020, 2019 and 2018 respectively. Purchase Commitments As required by applicable regulations, the Company must make firm offers of credit with respect to prescreened direct mail it sends out to prospective applicants provided such applicants continue to meet the credit worthiness criteria which were used to screen them at the time of their application and the application is completed prior to the offer’s stated expiration date. If such loans are accepted by the applicants but not otherwise funded by investors on the platform, the Company is required to facilitate funding for the loans directly with its issuing bank partners at minimum amounts, which are generally below the requested loan amount. The Company was required to purchase approximately $1.1 million of such loans during 2020. During the month of January 2021, $0.1 million of these loans were required to be purchased by the Company. In addition, if the Company could not arrange for other investors to invest in or purchase loans that the Company facilitated and that were originated by an issuing bank partner but did not meet the credit criteria for purchase by the issuing bank partner, the Company was contractually committed to purchase those loans. As of both December 31, 2020 and 2019, the Company had a $9.0 million deposit in a bank account to secure potential future purchases of these loans, if necessary. The funds are recorded as restricted cash on the Company’s Consolidated Balance Sheets. During the year ended December 31, 2020, the Company was required to purchase $36.1 million of loans facilitated by the Company or Springstone Financial, LLC (a previously held wholly-owned subsidiary of LendingClub). These purchased loans are held on the Company’s Consolidated Balance Sheets and have a fair value of $4.5 million and $45.7 million as of December 31, 2020 and 2019, respectively. Acquisition-related Commitments In connection with the Company’s acquisition of Radius, the Company entered into acquisition-related agreements that provide for the payment of certain contingent fees estimated at approximately $3 million as of December 31, 2020, due upon closing of the transaction. See “ Note 23. Subsequent Events ” for further information. Legal The Company is subject to various claims brought in a litigation or regulatory context. These matters include lawsuits and federal regulatory litigation, including but not limited to putative class action lawsuits, derivative lawsuits, and litigation with the FTC. In addition, the Company is subject to federal or state regulatory examinations, investigations, or actions relating to the Company’s business practices or licensing. It is also party to a number of routine litigation matters arising in the ordinary course of business. The majority of these claims and proceedings relate to or arise from alleged state or federal law and regulatory violations, or are alleged commercial disputes or consumer complaints. The Company accrues for costs related to contingencies when a loss from such claims is probable and the amount of loss can be reasonably estimated. In determining whether a loss from a claim is probable and the loss can be reasonably estimated, the Company reviews and evaluates its litigation and regulatory matters on at least a quarterly basis in light of potentially relevant factual and legal developments. If the Company determines an unfavorable outcome is not probable or the amount of loss cannot be reasonably estimated, the Company does not accrue for a potential litigation loss. In those situations, the Company discloses an estimate or range of the reasonably possible losses, if such estimates can be made. Except as otherwise specifically noted below, at this time, the Company does not believe that it is possible to estimate the reasonably possible losses or a range of reasonably possible losses related to the matters described below. FTC Lawsuit In 2016, the Company received a formal request for information from the Federal Trade Commission (FTC). The FTC commenced an investigation concerning certain of the Company’s policies and practices and related legal compliance. On April 25, 2018, the FTC filed a complaint in the Northern District of California ( FTC v. LendingClub Corporation , No. 3:18-cv-02454) alleging causes of action for violations of the FTC Act, including claims of deception in connection with disclosures related to the origination fee associated with loans available through the Company’s platform, and in connection with communications relating to the likelihood of loan approval during the application process, and a claim of unfairness relating to certain unauthorized charges to borrowers’ bank accounts. The FTC’s complaint also alleged a violation of the Gramm-Leach-Bliley Act regarding the Company’s practices in delivering its privacy notice. Following the Court’s ruling on a motion to dismiss filed by the Company, the FTC filed an amended complaint on October 22, 2018, which reasserted the same causes of action from the original complaint. On November 13, 2018, the Company filed an answer to the amended complaint. Following a motion by the FTC to strike certain affirmative defenses in the answer, the Company filed an amended answer in the case on May 29, 2019. The discovery period in the case is closed. On February 27, 2020, both the Company and the FTC filed various motions with the Court, including motions to exclude expert testimony and motions for summary judgment as to some or all of the claims in the case. The FTC also filed a motion for partial judgment on the pleadings in the case. These motions were heard by the Court on April 27, 2020. On June 1, 2020, the Court issued an order granting in part and denying in part both the Company’s and the FTC’s motions for summary judgment. The Court also denied the motions to exclude expert testimony and granted in part and denied in part the FTC’s motion for partial judgment on the pleadings. The FTC’s Gramm-Leach-Bliley Act claim has been dismissed from the case, but issues relating to the FTC’s three other claims will need to be tried. On July 30, 2020, the Company filed a motion to stay the litigation pending the U.S. Supreme Court’s decisions in two cases (F.T.C. v. Credit Bureau Center and AMG Capital Management, LLC v. F.T.C.) that raise the issue whether the FTC is entitled to seek monetary relief under Section 13(b) of the FTC Act. On August 20, 2020, the Court issued an order granting the Company’s motion to stay proceedings in the case until the U.S. Supreme Court issues its decision in the Credit Bureau Center and AMG Capital Management cases. As a result of this order, the trial that was scheduled for October 19, 2020 will need to be rescheduled at a later date following the Supreme Court’s ruling. The Supreme Court has vacated its prior grant of review in the Credit Bureau Center case but heard oral argument in the AMG Capital Management case on January 13, 2021. The exact timing of a ruling by the Supreme Court in that case is uncertain but is anticipated to be issued no later than June 2021. The impact of the Supreme Court decision could impact our case which is why the trial was stayed pending the Supreme Court decision. The Company denies, and will continue to vigorously defend against, the claims remaining in this case. Notwithstanding the Company’s vigorous defense, the Company and the FTC have participated in voluntary settlement conferences and may engage in additional settlement discussions. No assurances can be given as to the timing, outcome or consequences of this matter. Class Action Lawsuits Following Announcement of FTC Litigation In May 2018, following the announcement of the FTC’s litigation against the Company, putative shareholder class action litigation was filed in the U.S. District Court of the Northern District of California ( Veal v. LendingClub Corporation et.al., No. 5:18-cv-02599) against the Company and certain of its current and former officers and directors alleging violations of federal securities laws in connection with the Company’s description of fees and compliance with federal privacy law in securities filings. On January 7, 2019, the lead plaintiffs filed a consolidated amended class action complaint which asserts the same causes of action as the original complaint and adds additional allegations. That complaint was subsequently dismissed by the Court with leave to amend. Plaintiff filed a Second Amended Complaint on December 19, 2019, which modified and added certain allegations and dropped one of the former officer defendants as a defendant in the case, but otherwise advanced the same causes of action. On June 12, 2020, the Court issued an order granting a motion to dismiss by defendants without leave to amend, in part, and with leave to amend, in part. On July 27, 2020, the lead plaintiffs filed a notice with the Court indicating their intention not to file a Third Amended Complaint in this case and requesting that the Court enter judgment. The Court entered judgment and dismissed all claims in the case the same day. The lead plaintiffs have appealed the judgment to the U.S. Court of Appeals for the Ninth Circuit. The timing of a ruling in the appeal is uncertain. The Company denies and will vigorously defend against the allegations in the case. No assurances can be given as to the timing, outcome or consequences of this matter. In July 2019, a putative class action lawsuit was filed against the Company in federal court in the State of New York ( Shron v. LendingClub Corp. , 1:19-cv-06718) alleging various claims including fraud, unjust enrichment, breach of contract, and violations of the federal Truth-in-Lending Act and New York General Business Law sections 349 and 350, et seq., based on allegations, among others, that the Company made misleading or inadequate statements or omissions in relation to the total cost and origination fee associated with loans available through the Company’s platform. The plaintiff sought to represent classes of similarly situated individuals in the lawsuit. The Company filed a motion to compel arbitration of plaintiff’s claims on an individual basis. The Court denied that motion on July 13, 2020. The Company filed a notice of appeal with respect to the Court’s decision. The parties have finalized a settlement to resolve this litigation, the terms of which are not material to the Company’s financial position or results of operations, the Court has vacated its prior order denying the Company’s motion to compel arbitration, and the case has been dismissed with prejudice. Derivative Litigation Following FTC Lawsuit In August 2019, a putative shareholder derivative action was filed in the Court of Chancery for the State of Delaware ( Fisher v. Sanborn, et al. , Case No. 2019-0631) against certain of the Company’s current and former officers and directors and naming the Company as a nominal defendant. This lawsuit accuses the individual defendants of breaching their fiduciary duties by failing to adequately monitor the Company and prevent it from engaging in the purported regulatory violations alleged by the FTC and by causing the Company to make allegedly false and misleading public statements (as alleged in the Veal action). The lawsuit also alleges that certain of the individual defendants breached their fiduciary duties by selling Company shares while in possession of material, non-public information. The defendants have filed a motion to dismiss the operative complaint in the case, which was heard by the Court on July 2, 2020. It is unclear when the Court will issue a ruling on the motion. No assurances can be given as to the timing, outcome or consequences of this matter. Regulatory Investigation by the State of Massachusetts In June 2018, the Company received a civil investigative demand from the office of the Attorney General of the State of Massachusetts. The investigation related to the advertisement, provision and servicing of personal loans to Massachusetts’ consumers facilitated by the Company, including the Company’s compliance with the Massachusetts Small Loan Law and the Small Loan Rate Order promulgated under it. The Company cooperated with the investigation and finalized an Assurance of Discontinuance in January 2020 with the Attorney General’s Office to resolve the investigation, the terms of which are not material to the Company’s financial position or results of operations. In December 2019, the Massachusetts Division of Banks raised concerns pertaining to the Company’s compliance with the Massachusetts Small Loan Law similar to those the Massachusetts Attorney General’s Office raised during its investigation of the Company. The Company has agreed to resolve the Division’s concerns on terms that are not material to the Company’s financial position or results of operations. Regulatory Examinations and Actions Relating to the Company’s Business Practices and Licensing The Company has been subject to periodic inquiries and enforcement actions brought by federal and state regulatory agencies relating to the Company’s business practices, the required licenses to operate its business, and its manner of operating in accordance with the requirements of its licenses. In the past, the Company has successfully resolved inquiries in a manner that was not material to its results of financial operations in any period and that did not materially limit the Company’s ability to conduct its business. The Company is routinely subject to examination for compliance with applicable laws and regulations in the states in which it is licensed. As of the date of this Report, the Company is subject to examination by the New York Department of Financial Services (NYDFS) and other regulators. The Company periodically has discussions with various regulatory agencies regarding its business model and has engaged in similar discussions with the NYDFS. During the course of such discussions with the NYDFS, which remain ongoing, the Company decided to voluntarily comply with certain rules and regulations of the NYDFS. No assurances can be given as to the timing, outcome or consequences of this matter or others if or as they arise. Putative Class Actions In February 2020, a putative class action lawsuit was filed against the Company in the U.S. District Court for the Northern District of California ( Erceg v. LendingClub Corporation , No. 3:20-cv-01153). The lawsuit alleges violations of California and Massachusetts law based on allegations that LendingClub recorded a call with plaintiff without notifying him that it would be recorded. Plaintiff seeks to represent a purported class of similarly situated individuals who had phone calls recorded by LendingClub without their knowledge and consent. LendingClub filed a motion to dismiss certain of plaintiff’s claims, strike nationwide class allegations, and, alternatively, to stay the litigation. Rather than oppose that motion, plaintiff filed an amended complaint. The Company again filed a motion to stay, or alternatively to dismiss certain of the claims in the amended complaint and to strike nationwide class allegations. That motion was heard by the Court on July 9, 2020. On July 28, 2020, the Court entered an order granting the Company’s motion to stay Plaintiff’s California claims pending a decision by the California Supreme Court in a case involving the California Invasion of Privacy Act, dismissing with prejudice Plaintiff’s claim under Massachusetts law, and denying the Company’s motion to strike Plaintiff’s nationwide class allegations. No assurances can be given as to the timing, outcome or consequences of this matter. In July 2020, a putative class action lawsuit was filed against the Company in the U.S. District Court for the Southern District of New York ( Sosa v. LendingClub Corporation , No. 1:20-cv-05256). The lawsuit alleges violations of the Americans with Disabilities Act and various state law claims based on allegations that the plaintiff, who alleges he is visually-impaired, encountered access barriers in visiting LendingClub’s website that denied the plaintiff the full enjoyment of the services of the website. The plaintiff sought to represent a class of similarly situated individuals in the lawsuit and sought monetary, injunctive, and declaratory relief, among other relief. In September 2020, LendingClub filed an answer to plaintiff’s complaint denying liability in the case. The parties have reached agreement to resolve the matter, the terms of which are not material to the Company’s financial position or results of operations and the plaintiff has filed a notice of voluntary dismissal of the case with prejudice. This case is now concluded. In February 2021, a putative class action lawsuit was filed against the Company in the U.S. District Court for the Southern District of Texas ( Bradford v. Lending Club Corporation , No. 4:21-cv-00588). The lawsuit asserts a cause of action under the Fair Credit Reporting Act (FCRA) based on allegations that the Company obtained Plaintiff’s credit report without his consent or authorization and without a permissible purpose under the FCRA. Plaintiff seeks to represent a class of allegedly similarly situated persons in the case and seeks monetary, injunctive, and declaratory relief, among other relief. No assurances can be given as to the timing, outcome or consequences of this matter. California Private Attorneys General Lawsuit In September 2018, a putative action under the California Private Attorney General Act was brought against the Company in the California Superior Court ( Brott v. LendingClub Corporation, et al. , CGC-18-570047) alleging violations of the California Labor Code. The complaint by a former employee alleges that the Company improperly failed to pay certain hourly employees for all wages owed, pay the correct rate of pay including overtime, and provide accurate wage statements. The lawsuit alleges that the plaintiff and aggrieved employees are entitled to recover civil penalties under the California Labor Code. The parties have reached a resolution of this matter, the terms of which are not material to the Company’s financial position or results of operations. The resolution will require court approval. The parties have finalized a written settlement agreement and will seek the Court’s approval of the negotiated resolution. It remains unclear when the Court will consider approving the settlement or issuing a ruling in connection with the same. Certain Financial Considerations Relating to Litigation and Investigations With respect to the matters discussed above, the Company had $21.6 million and $16.0 million in accrued contingent liabilities as of December 31, 2020 and 2019, respectively. The increase in accrued contingent liabilities as of December 31, 2020 compared to December 31, 2019 was primarily related to legal expenses for legacy litigation and regulatory matters during 2020, which is included in “Other general and administrative” expense on the Company’s Consolidated Statements of Operations. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs On April 20, 2020, the Company approved a restructuring plan to address the impact of COVID-19 on the Company’s business. The restructuring plan was completed on April 21, 2020 and resulted in a reduction of approximately 30% of the Company’s workforce. During the year ended December 31, 2020, the Company recorded $17.8 million in restructuring costs within operating expenses, which was comprised of $8.0 million in compensation costs, $5.6 million in related non-cash lease expenses and impairment, and $4.2 million in impairment of internally developed software. All of the $8.0 million in compensation costs expensed were paid out during the year, resulting in no restructuring liability as of December 31, 2020. No such restructuring costs were recorded during the year ended December 31, 2019. The following table presents the restructuring costs for the year ended December 31, 2020, recorded in the Company’s Consolidated Statements of Operations: Year Ended December 31, 2020 Sales and marketing $ 1,271 Origination and servicing 793 Engineering and product development 7,245 Other general and administrative 8,480 Total $ 17,789 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company defines its operating segments by the loan product types of personal, education and patient finance, and auto. While each of these product types are considered operating segments, they are aggregated to represent one reportable segment as the education and patient finance and auto loan operating segments are immaterial both individually and in the aggregate. In the second quarter of 2019, the Company sold certain assets relating to its small business operating segment and announced that it will connect applicants looking for a small business loan with strategic partners and earn referral fees, instead of facilitating these loans on its platform. All of the Company’s revenue is generated in the United States. No individual borrower or investor accounted for 10% or more of consolidated net revenue for any of the periods presented. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsRelated party transactions must be reviewed and approved by the Audit Committee of the Company’s board of directors when not conducted in the ordinary course of business subject to the standard terms of the Company’s lending marketplace or certificate investment program. Any material amendment or modification to an existing related party transaction is also subject to the review and approval of the Audit Committee. Related party transactions may include any transaction between entities under common control or with a related person that has occurred since the beginning of the Company’s latest fiscal year or is currently proposed. The Company has defined related persons as members of the board of directors, executive officers, principal owners of the Company’s outstanding stock and any immediate family members of each such related person, as well as any other person or entity with significant influence over the Company’s management or operations. Several of the Company’s executive officers and directors (including immediate family members) have made deposits and withdrawals to their investor accounts and purchased loans or interests therein. The Company believes all such transactions by related persons were made in the ordinary course of business and were transacted on terms and conditions that were not more favorable than those obtained by similarly situated third-party investors. In February 2020, the Company entered into an exchange agreement with its largest stockholder, Shanda, pursuant to which, in March 2020, Shanda exchanged all of 19,562,881 shares of LendingClub common stock held by it for (i) 195,628 newly issued shares of mandatorily convertible, non-voting, LendingClub preferred stock, series A, both with a par value of $0.01 per share, and (ii) a one-time cash payment of $50.2 million. See “ Note 15. Stockholders' Equity ,” for additional information. As of December 31, 2020, the Company had a $7.8 million investment and an approximate 22% ownership interest in an Investment Fund, a private fund that participates in a family of funds with other unrelated third parties. This family of funds purchases assets from third parties unrelated to the Company and, prior to 2020, purchased whole loans and interests in loans from the Company. The Company has requested a full redemption of our investment in the Investment Fund. The Company’s investment in the Investment Fund is recorded in “Other assets” on the Company’s Consolidated Balance Sheets. The Company believes all arrangements were on terms and conditions that were not more favorable than those obtained by other third-party investors. The Investment Fund provides audited financial statements annually and periodic investment statements throughout each calendar year on a delayed basis, which are used by the Company to evaluate performance and recoverability of our investment. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to December 31, 2020, through the date the consolidated financial statements were filed with the SEC. Based on this evaluation, other than as recorded or disclosed within these consolidated financial statements and related notes, including as disclosed below, the Company has determined no additional subsequent events were required to be recognized or disclosed. Radius Bancorp, Inc. Acquisition On February 1, 2021, the Company completed the acquisition of Radius Bancorp, Inc. (Radius), in accordance with the Plan of Merger previously disclosed, for total consideration of approximately $145 million in cash and $40.8 million in LendingClub common stock (3,761,114 shares). The acquisition combines the Company’s complementary digital lending capabilities with those of a digital bank. The acquisition will be accounted for as a purchase business combination with the purchase price allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values at the acquisition date. The residual difference will be recorded as goodwill. The Company is in the process of completing its initial fair value estimates, which will be included in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. The acquisition of Radius will significantly change the presentation of our financial statements in future periods. Going forward, the Company’s financial statements will be structured according to the presentation requirements for bank holding companies under Article 9 of the SEC’s Regulation S-X. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include the Company’s unrestricted deposits with investment-grade financial institutions, institutional money market funds, certificates of deposit, and commercial paper. The Company considers all highly liquid investments with stated maturity dates of three months or less from the date of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash consists primarily of bank deposits and money market funds that are: (i) pledged as security for transactions processed on or related to LendingClub’s platform or activities by certain investors; and (ii) received from the borrower and applied to the loan, but not yet distributed to the investor’s internal platform account or sent to their external account. |
Securities Available for Sale | Securities Available for Sale Debt securities that the Company might not hold until maturity are classified as securities available for sale. In structured program transactions that meet the applicable criteria to be accounted for as a sale, the Company retains certain asset-backed securities including subordinated residual interests and CLUB Certificates, which are classified as securities available for sale. On January 1, 2020, the entity adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) for securities available for sale. Asset-backed securities where the expected cash flows are significantly lower than that of the contractual future cash flows are considered to be purchased with credit deterioration (PCD). The discounted differential in expected and contractual cash flows is included with the purchase price of the asset to determine amortized cost of the security with an equal and offsetting valuation allowance for credit losses. Securities available for sale are recorded at fair value and unrealized gains and losses are reported, net of taxes, in “Accumulated other comprehensive income (loss)” included in Equity in the Company’s Consolidated Balance Sheets unless management determines that the security is impaired due to a deterioration in expected cash flows, in which case the unrealized loss is recognized in earnings within “Net fair value adjustments” as a valuation allowance for credit losses (with the implementation of CECL) or other-than-temporary impairment (prior to the implementation of CECL) in the Company’s Consolidated Statements of Operations. Management evaluates whether debt securities available for sale with unrealized losses are impaired on a quarterly basis. If the Company intends to sell the security, or if it is more likely than not that it will be required to sell the security before recovery, an impairment is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the debt security. However, even if the Company does not expect to sell a debt security it must evaluate if a deterioration in cash flows exists. |
Loans Held for Investment by the Company | Loans Held for Investment by the Company and Loans Held for Sale by the Company The Company has elected the fair value option for loans held for investment by the Company and loans held for sale by the Company. Changes in the fair value of loans held by the Company are recorded in “Net fair value adjustments” in the Consolidated Statements of Operations in the period of the fair value changes. The Company places loans held by the Company on non-accrual status at 90 days past due. Accrued interest income on loans held by the Company is calculated based on the contractual interest rate of the loan held by the Company and recorded as interest income as earned. When a loan held by the Company is placed on non-accrual status, the Company stops accruing interest and reverses all accrued but unpaid interest as of such date. The Company charges-off loans held by the Company no later than 120 days past due. The Company does not record an allowance for credit losses on accrued interest receivable. The Company accrues interest income on loans on short term hardship programs using the effective interest rate method. |
Loans Held for Sale by the Company | Loans Held for Investment by the Company and Loans Held for Sale by the Company The Company has elected the fair value option for loans held for investment by the Company and loans held for sale by the Company. Changes in the fair value of loans held by the Company are recorded in “Net fair value adjustments” in the Consolidated Statements of Operations in the period of the fair value changes. The Company places loans held by the Company on non-accrual status at 90 days past due. Accrued interest income on loans held by the Company is calculated based on the contractual interest rate of the loan held by the Company and recorded as interest income as earned. When a loan held by the Company is placed on non-accrual status, the Company stops accruing interest and reverses all accrued but unpaid interest as of such date. The Company charges-off loans held by the Company no later than 120 days past due. The Company does not record an allowance for credit losses on accrued interest receivable. The Company accrues interest income on loans on short term hardship programs using the effective interest rate method. |
Loans Held for Investment and Related Notes and Certificates | Loans Held for Investment and Related Notes and Certificates The Company has elected the fair value option for loans held for investment and related notes and certificates. Due to the payment dependent feature of the notes and certificates, changes in the fair value of the notes and certificates are offset by changes in the fair values of related loans, resulting in no net effect on the Company’s earnings. The Company places loans held for investment on non-accrual status at 90 days past due. Interest receivable on loans held for investment and accrued interest payable on notes and certificates are reduced when the corresponding loan held for investment is placed on non-accrual status due to the payment dependent nature of the loans held for investment and related notes and certificates. The Company charges-off loans held for investment and related notes |
Servicing Assets and Liabilities | Servicing Assets The Company records servicing assets at their estimated fair values when it sells loans or when the Company assumes or acquires a servicing obligation whereby the underlying loans are not included in its financial statements. The gain or loss on a loan sale is recorded separately in “Gain on sales of loans” in the Company’s Consolidated Statements of Operations while the component of the gain or loss that is based on the degree to which the contractual servicing fee is above or below an estimated market servicing rate is recorded as a servicing asset. Servicing assets are reported in “Other assets” on the Company’s Consolidated Balance Sheets. Changes in the fair value of servicing assets are reported in “Investor fees” in the Company’s Consolidated Statements of Operations in the period in which the changes occur. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair value is the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date (an exit price). The Company uses fair value measurements in its fair value disclosures and to record securities available for sale, loans held for investment and loans held for sale, notes and certificates, and servicing assets and liabilities at fair value on a recurring basis. The fair value hierarchy includes a three-level classification, which is based on whether the inputs to the valuation methodology used for measurement are observable: Level 1 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 — Unobservable inputs. When developing fair value measurements, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. However, for certain instruments the Company must utilize unobservable inputs in determining fair value due to the lack of observable inputs in the market, which requires greater judgment in measuring fair value. In instances where there is limited or no observable market data, fair value measurements for assets and liabilities are based primarily upon the Company’s own estimates, and the measurements reflect information and assumptions that management believes a market participant would use in pricing the asset or liability. Loans held for investment, loans held for sale and related notes, certificates and secured borrowings, are measured at estimated fair value using a discounted cash flow model. The fair valuation methodology considers projected prepayments, underwriting changes and the historical actual defaults, losses and recoveries on the Company’s loans to project future losses and net cash flows on loans. Net cash flows on loans are discounted using an estimate of market rates of return. Loan servicing assets are measured at estimated fair value using a discounted cash flow model. The cash flows in the valuation model represent the difference between the contractual servicing fees charged to investors and an estimated market servicing rate. Since contractual servicing fees are generally based on the monthly unpaid principal balance of the underlying loans, the expected cash flows in the model incorporate estimates of net expected losses and prepayments. |
Property, Equipment and Software, Net | Property, Equipment and Software, net Property, equipment and software are carried at cost less accumulated depreciation and amortization. The Company uses the straight-line method of depreciation and amortization. Estimated useful lives range from three years to five years for furniture and fixtures, computer equipment, and software. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. Internally developed software is capitalized when preliminary development efforts are successfully completed and it is probable that the project will be completed, and the software will be used as intended. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts, and costs incurred for upgrades and enhancements to add functionality of the software. Other costs are expensed as incurred. The Company evaluates impairments of its property, equipment and software whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the asset is not recoverable, measurement of an impairment loss is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the fair value of an acquired business in excess of the aggregate fair value of the identified net assets acquired. Goodwill is not amortized but is tested for impairment annually or more frequently whenever events or circumstances indicate that it is more likely than not that the estimated fair value of a reporting unit is below its carrying value. The Company’s annual impairment testing date is April 1. Impairment exists whenever the carrying value of goodwill exceeds its estimated fair value. Adverse changes in impairment indicators such as loss of key personnel, lower than forecast financial performance, increased competition, increased regulatory oversight, or unplanned changes in operations could result in impairment. The Company can elect to qualitatively assess goodwill for impairment if it is more likely than not that the estimated fair value of a reporting unit (generally defined as an operating segment or one level below an operating segment for which financial information is available and reviewed regularly by management) exceeds its carrying value. A qualitative assessment may consider macroeconomic and other industry-specific factors, such as trends in short-term and long-term interest rates and the ability to access capital or company-specific factors, such as market capitalization in excess of net assets, trends in revenue-generating activities and merger or acquisition activity. If the Company does not qualitatively assess goodwill it compares a reporting unit’s estimated fair value to its carrying value. The Company estimates the fair value of a reporting unit using either an income approach (discounted cash flow model) or the income approach corroborated by a market approach. Goodwill impairment loss is measured as the amount by which the carrying amount of a reporting unit exceeds its fair value. When applying the income approach, the Company uses a discounted cash flow model, which requires the estimation of cash flows and an appropriate discount rate. The Company projects cash flows expected to be generated by a reporting unit inclusive of an estimated terminal value. The discount rate assumption contemplates a weighted-average cost of capital based on both market observable and company-specific factors. The discount rate is risk-adjusted to include any premiums related to equity price volatility, size, and projected capital structure of publicly traded companies in similar lines of business. The Company relies on several assumptions when estimating the fair value of a reporting unit using the discounted cash flow method. These assumptions include the current discount rate discussed above, as well as transaction fee revenue based on projected loan origination growth and revenue growth, projected operating expenses and Contribution Margin, direct and allocated general and administrative and technology expenses, capital expenditures and income taxes. The Company believes these assumptions to be representative of assumptions that a market participant would use in valuing a reporting unit, but these assumptions involve the use of estimates and judgments, particularly related to future cash flows, which are inherently uncertain. There can be no assurances that estimates and assumptions made for purposes of goodwill impairment testing will prove accurate predictions of the future. The market approach estimates the fair value of a reporting unit based on certain market value multiples of publicly traded companies in similar lines of business, such as total enterprise value to revenue, or to EBITDA. Under the market approach, the Company also considers fair value implied from any relevant and comparable market transactions. Goodwill impairment loss is measured as the amount by which the carrying amount of a reporting unit exceeds its fair value. See “ Note 11. Intangible Assets and Goodwill ” for additional information. Intangible assets are amortized over their useful lives in a manner that best reflects their economic benefit, which may include straight-line or accelerated methods of amortization. Intangible assets are reviewed for impairment quarterly and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company does not have indefinite-lived intangible assets. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities in “Accrued expenses and other liabilities” in the Company’s Consolidated Balance Sheets. Associated legal expense is recorded in “Other general and administrative” expense or in “Class action and regulatory litigation expense” for the losses associated with the securities class action lawsuits, as described in “ Note 19. Commitments and Contingencies, ” in the Company’s Consolidated Statements of Operations. Such liabilities and associated expenses are recorded when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company will also disclose a range of exposure to incremental loss when such amounts are reasonably possible and can be estimated. In estimating the Company’s exposure to loss contingencies, if an amount within the estimated range of loss is the best estimate, that amount will be accrued. However, if there is no amount within the estimated range of loss that is the best estimate, the Company will accrue the minimum amount within the range, and disclose the amount up to the high end of the range as an exposure to incremental loss, if such amount is considered reasonably possible. Such estimates are based on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability and records an adjustment to its estimate in the period in which the adjustment is probable and an amount or range can be reasonably estimated. The determination of an expected contingent liability and associated litigation expense requires the Company to make assumptions related to the outcome of these matters. Due to the inherent uncertainties of loss contingencies, the Company’s estimates may be different than the actual outcomes. Legal fees, including legal fees associated with loss contingencies, are recognized as incurred and included in “Other general and administrative” expense in the Company’s Consolidated Statements of Operations. |
Revenue Recognition | Revenue Recognition Transaction Fees : The Company has a single performance obligation to provide customers access to the Company’s platform. Transaction fees are considered revenue from contracts with customers, including issuing banks and education and patient service providers. The Company recognizes transaction fee revenue each time a loan is facilitated by the Company, who provides loan application processing and loan facilitation services, resulting in a loan issued by the customers. Transaction fees are based on the initial principal amount of the loans facilitated by the Company and paid by the issuing banks and education and patient service providers each time a loan is issued by the issuing banks. Transaction fees to which the Company expects to be entitled are variable consideration because loan volume originated over the contractual term is not known at the contract’s inception. The transaction fee is determined each time a loan is issued based on that loan’s initial principal amount. The Company pays WebBank a loan trailing fee to give WebBank an ongoing financial interest in the performance of the loans it originates and sells to the Company. The Loan Trailing Fee is paid over time based on the amount and timing of principal and interest payments made by borrowers of the underlying loans. The Loan Trailing Fee is consideration payable to WebBank and the loan trailing fee liability is recorded at fair value. Additionally, the Company assumes the issuing bank’s obligation under Utah law to refund the pro-rated amount of the transaction fee in excess of 5% in the event the borrower prepays the loan in full before maturity. Both the loan trailing fees and transaction fee refunds are recorded as a reduction of transaction fee revenue in the Company’s Consolidated Statements of Operations and are included in “Accrued expenses and other liabilities” on the Company’s Consolidated Balance Sheets. Other Revenue : Other revenue primarily consists of referral fee revenue and sublease revenue from our sublet office space in San Francisco, California. The Company is entitled to receive referral fees from third-party companies when customers referred by the Company consider or purchase products or services from such third-party companies. Referral contracts contain a single performance obligation. The Company recognizes referral fees for each distinct instance when the criteria for receiving the referral fee has been satisfied. Sublease revenue is recognized on a straight-line basis over the term of the lease. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation includes expense associated with restricted stock units (RSUs) and performance-based restricted stock units (PBRSUs), stock options, and the Company’s employee stock purchase plan (ESPP), as well as expense associated with stock issued related to acquisitions. Stock-based compensation expense is based on the grant date fair value of the award. The cost is generally recognized over the vesting period on a straight-line basis. Forfeitures are recognized as incurred. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers the available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. If the Company determines that it is able to realize its deferred tax assets in the future in excess of the net recorded amount, the Company decreases the deferred tax asset valuation allowance, which reduces the provision for income taxes. Uncertain tax positions are recognized only when we believe it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company recognizes interest and penalties, if any, related to uncertain tax positions in “Income tax expense (benefit)” in the Consolidated Statements of Operations. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share (Basic EPS) attributable to common stockholders is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share (Diluted EPS) is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period, adjusted for the effects of dilutive issuances of shares of common stock, which include incremental shares issued for outstanding RSUs, PBRSUs, and stock options. PBRSUs are included in dilutive shares to the extent the pre-established performance targets have been or are estimated to be satisfied as of the reporting date. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding RSUs, PBRSUs, and stock options are excluded from the computation of Diluted EPS in periods in which the effect would be antidilutive. For periods with more than one class of common shares, the Company computes Basic and Diluted EPS using the two-class method, which is an allocation of net income (loss) among the holders of each class of common shares. The Series A Preferred Stock is considered a separate class of common share for purposes of calculating net income (loss) per share because it participates in earnings similar to common stock and does not receive any significant preferences over the common stock. Beneficial Conversion Feature The Company accounts for the beneficial conversion feature (BCF) on its Series A Preferred Stock in accordance with ASC 470-20, Debt with Conversion and Other Options . The Company accretes the BCF discount from the date of issuance to the earliest conversion date, which was March 20, 2020. All of the BCF discount was accreted and recognized as a deemed dividend in “Accumulated deficit” on the Company’s Condensed Consolidated Balance Sheets. See “ Note 15. Stockholders' Equity ” for additional information. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities A variable interest entity (VIE) is a legal entity that has either a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. The Company’s variable interest arises from contractual, ownership or other monetary interests in the entity, which change with fluctuations in the fair value of the entity’s net assets. A VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance, and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates a VIE when it is deemed to be the primary beneficiary. The Company assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. |
Transfers of Financial Assets | Transfers of Financial Assets The Company accounts for transfers of financial assets as sales when it has surrendered control over the transferred assets. Control is generally considered to have been surrendered when the transferred assets have been legally isolated from the Company, the transferee has the right to pledge or exchange the assets without any significant constraints, and the Company has not entered into a repurchase agreement, does not hold unconditional call options and has not written put options on the transferred assets. In assessing whether control has been surrendered, the Company considers whether the transferee would be a consolidated affiliate and the impact of all arrangements or agreements made contemporaneously with, or in contemplation of the transfer, even if they were not entered into at the time of transfer. The Company measures gain or loss on sale of financial assets as the net proceeds received on the sale less the carrying amount of the loans sold. The net proceeds of the sale represent the fair value of any assets obtained or liabilities incurred as part of the transaction, including, but not limited to servicing assets, retained securities, and recourse obligations. Transfers of financial assets that do not qualify for sale accounting are reported as secured borrowings. Accordingly, the related assets remain on the Company’s Consolidated Balance Sheets and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with related interest expense recognized over the life of the related assets. |
New Accounting Standards | Adoption of New Accounting Standards The Company adopted the following accounting standards during the year ended December 31, 2020: On January 1, 2020, the entity adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . For loans accounted for at amortized cost, the guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. As the Company has elected the fair value option for loans and loans accounted for at fair value through net income are outside the scope of Topic 326, there is no impact on the Company’s loan portfolios. For debt securities available for sale, Topic 326 requires recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. Upon adoption, the amendments in Topic 326 are recognized through a cumulative-effect adjustment to retained earnings, except for debt securities with prior other-than-temporary impairment whereby Topic 326 is applied prospectively. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis remains the same before and after the effective date of ASC 326. The effective interest rate on these debt securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of January 1, 2020 relating to improvements in cashflows expected to be collected are accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 are recorded in earnings when received. Additionally, the Company adopted ASC 326 using the prospective transition approach for PCD financial assets. The Company did not have any previously classified assets as purchased credit impaired (PCI) under ASC 310-30. In accordance with this standard, management did not reevaluate for PCD upon transition. Adoption of Topic 326 did not have an impact on the Company’s financial position, results of operations, and cash flows. The Company did not record a cumulative effect adjustment to retained earnings. The Company included the disclosures required by ASU 2016-13 in “ Note 5. Securities Available for Sale. ” In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and valuation processes for Level 3 fair value measurements. The ASU adds new disclosure requirements for Level 3 measurements. The new guidance became effective on January 1, 2020 and did not have a material impact on the Company’s related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software – (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires a customer in a hosting arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The standard became effective on January 1, 2020 and the Company adopted the standard using the prospective approach. The Company has reviewed existing cloud computing arrangements and determined which ones are service contracts. Implementation costs that are not from internal developers related to service contracts that satisfy the criteria for capitalization under ASC 350-40 will be presented with “Other assets” on the Company’s Consolidated Balance Sheets, amortization expense will be presented in the same line on the income statement as the fees for the associated hosted service on the Company’s Consolidated Statements of Operations, and the cash flows will be presented consistent with the presentation of cash flows for the fees related to the hosted service, generally as cash flows from operations, on the Company’s Consolidated Statements of Cash Flows. Adoption of the standard did not have a material impact on the Company’s financial position, results of operations, cash flows, or disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is part of the FASB’s initiative to reduce complexity in accounting standards. The ASU eliminates certain exceptions to the general principles of ASC 740, Income Taxes , and simplifies income tax accounting in several areas. The standard is effective for fiscal periods beginning after December 15, 2020 with early adoption permitted. The Company early adopted this ASU as of January 1, 2020, and did not have a material impact on its financial position, results of operations, cash flows, and disclosures. New Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which, if certain criteria are met, provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The provisions of the new standard may be adopted as of the beginning of the reporting period when the election is made until December 31, 2022. The Company is evaluating the impact this ASU will have on its financial position, results of operations, cash flows, and disclosures. The Company has not elected an adoption date. In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity including convertible instruments and contracts on an entity’s own equity. The guidance allows for either full or modified retrospective adoption for fiscal periods beginning after December 15, 2021 with early adoption permitted for fiscal periods beginning after December 15, 2020. The Company is evaluating the impact this ASU will have on its financial position, results of operations, cash flows, and disclosures. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenue from contracts with customers, disaggregated by revenue source for services transferred over time, for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 2018 Transaction fees $ 207,640 $ 598,760 $ 526,942 Referral fees 5,011 5,474 3,645 Total revenue from contracts with customers $ 212,651 $ 604,234 $ 530,587 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) per Share | The following table details the computation of the Company’s basic and diluted net loss per share of common stock and Series A Preferred Stock: Year Ended December 31, 2020 2019 2018 Common Stock Preferred Stock (1)(2) Common Stock Common Stock Allocation of undistributed LendingClub net loss $ (154,664) $ (32,874) $ (30,745) $ (128,308) Deemed dividend (50,204) 50,204 — — Net loss attributable to stockholders $ (204,868) $ 17,330 $ (30,745) $ (128,308) Weighted-average common shares – Basic and Diluted (2) 77,934,302 12,505,393 87,278,596 84,583,461 Net loss per share attributable to stockholders – Basic and Diluted (2) $ (2.63) $ 1.39 $ (0.35) $ (1.52) (1) Presented on an as-converted basis. (2) See “ Note 2. Summary of Significant Accounting Policies ” and “ Note 15. Stockholders' Equity ” for additional information. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table summarizes the weighted-average common shares that were excluded from the Company’s diluted net loss per share computation because their effect would have been anti-dilutive for the periods presented: Year Ended December 31, 2020 2019 2018 Preferred stock 12,505,393 — — Stock options 221,949 455,627 893,425 RSUs and PBRSUs 299,747 59,812 63,959 Total 13,027,089 515,439 957,384 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of December 31, 2020 and 2019, were as follows: December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair Asset-backed senior securities (1)(2) $ 75,332 $ 67 $ (27) $ — $ 75,372 CLUB Certificate asset-backed securities (1)(2) 54,525 576 (772) (4,190) 50,139 Asset-backed subordinated securities (1)(2) 29,107 2,128 (174) (14,546) 16,515 Other securities (2) 200 — — — 200 Total securities available for sale $ 159,164 $ 2,771 $ (973) $ (18,736) $ 142,226 December 31, 2019 Amortized Gross Gross Fair Asset-backed senior securities (1)(2) $ 108,780 $ 597 $ (38) $ 109,339 CLUB Certificate asset-backed securities (1)(2) 90,728 41 (1,063) 89,706 Asset-backed subordinated securities (1)(2) 20,888 423 (221) 21,090 Corporate debt securities 14,333 11 (1) 14,343 Certificates of deposit 13,100 — — 13,100 Other asset-backed securities 12,075 6 (1) 12,080 Commercial paper 9,274 — — 9,274 U.S. agency securities 1,995 — — 1,995 Total securities available for sale $ 271,173 $ 1,078 $ (1,324) $ 270,927 (1) As of December 31, 2020 and 2019, $119.3 million and $219.0 million, respectively, of the asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company’s obligations as a “sponsor” under the U.S. Risk Retention Rules (as more fully described in “ Part I – Item 1A. Risk Factors – Risk retention rules may increase our compliance costs, impair our liquidity and otherwise adversely affect our operating results. ”) (2) As of December 31, 2020 and 2019, includes $133.5 million and $174.8 million, respectively, of securities pledged as collateral at fair value. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded as of December 31, 2020 and 2019, aggregated by period of continuous unrealized loss, is as follows: Less than 12 months Total December 31, 2020 Fair Unrealized Fair Unrealized Fair Unrealized Asset-backed securities related to Structured Program transactions $ 26,678 $ (855) $ 6,052 $ (118) $ 32,730 $ (973) Total securities with unrealized losses (1) $ 26,678 $ (855) $ 6,052 $ (118) $ 32,730 $ (973) Less than 12 months Total December 31, 2019 Fair Unrealized Fair Unrealized Fair Unrealized Asset-backed securities related to Structured Program transactions $ 91,350 $ (1,287) $ 1,875 $ (35) $ 93,225 $ (1,322) Corporate debt securities 4,613 (1) — — 4,613 (1) Other asset-backed securities 3,062 (1) — — 3,062 (1) Total securities with unrealized losses (1) $ 99,025 $ (1,289) $ 1,875 $ (35) $ 100,900 $ (1,324) (1) The number of investment positions with unrealized losses at December 31, 2020 and 2019 totaled 55 and 70, respectively. |
Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses for securities available for sale, by major security type, for the year ended December 31, 2020: Allowance for Credit Losses CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of January 1, 2020 $ — $ — $ — Provision for credit loss expense (236) (3,146) (3,382) Allowance arising from PCD financial assets (3,954) (11,400) (15,354) Ending balance as of December 31, 2020 $ (4,190) $ (14,546) $ (18,736) |
Debt Securities, Available-for-sale, Purchased with Credit Deterioration | Securities available for sale purchased with credit deterioration during the year ended December 31, 2020 were as follows: Year Ended December 31, 2020 Purchase price of PCD securities at acquisition $ 27,034 Allowance for credit losses on PCD securities at acquisition 15,353 Par value of acquired PCD securities at acquisition $ 42,387 |
Investments Classified by Contractual Maturity Date | The contractual maturities of securities available for sale at December 31, 2020, were as follows: Amortized Cost Fair Value Within 1 year: Other securities $ 200 $ 200 Total 200 200 Asset-backed securities related to Structured Program transactions 158,964 142,026 Total securities available for sale $ 159,164 $ 142,226 |
Schedule of Proceeds from Sales and Realized Gain (Loss) on Available-for-sale Securities | Proceeds and gross realized gains and losses from other sales of securities available for sale were as follows: Year Ended December 31, 2020 2019 2018 Proceeds $ 6,217 $ 12,548 $ 497 Gross realized gains $ 14 $ 9 $ 1 Gross realized losses $ (3) $ (1) $ (3) |
Loans Held for Investment, Lo_2
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Loans and Notes and Certificates | At December 31, 2020 and 2019, loans held for investment, notes, certificates and secured borrowings measured at fair value on a recurring basis were as follows: Loans Held for Investment Notes, Certificates and Secured Borrowings December 31, 2020 2019 2020 2019 Aggregate principal balance outstanding $ 679,903 $ 1,148,888 $ 679,903 $ 1,148,888 Net fair value adjustments (43,217) (69,573) (43,129) (67,422) Fair value $ 636,686 $ 1,079,315 $ 636,774 $ 1,081,466 |
Schedule of Outstanding Principal Balance of Notes, Certificates and Secured Borrowings at Fair Value | The following table provides the balances of notes, certificates and secured borrowings at fair value at the end of the periods indicated: December 31, 2020 2019 Notes $ 583,219 $ 863,488 Certificates 52,620 197,842 Secured borrowings 935 20,136 Total notes, certificates and secured borrowings $ 636,774 $ 1,081,466 |
Loans Invested in by Company | At December 31, 2020 and 2019, loans invested in by the Company for which there were no associated notes, certificates or secured borrowings (with the exception of $148.3 million and $40.3 million in loans at fair value in consolidated trusts as of December 31, 2020 and 2019, respectively) were as follows: Loans Invested in by the Company Loans Held for Investment Loans Held for Sale Total December 31, 2020 2019 2020 2019 2020 2019 Aggregate principal balance outstanding $ 56,388 $ 47,042 $ 132,600 $ 747,394 $ 188,988 $ 794,436 Net fair value adjustments (6,434) (3,349) (10,698) (25,039) (17,132) (28,388) Fair value $ 49,954 $ 43,693 $ 121,902 $ 722,355 $ 171,856 $ 766,048 |
Past Due Financing Receivables | Loans that were 90 days or more past due (including non-accrual loans) were as follows: December 31, 2020 2019 Loans held for investment: Outstanding principal balance $ 4,690 $ 10,755 Net fair value adjustments (3,883) (9,663) Fair value $ 807 $ 1,092 Number of loans (not in thousands) 769 1,428 Loans invested in by the Company: Outstanding principal balance $ 1,090 $ 2,315 Net fair value adjustments (921) (2,016) Fair value $ 169 $ 299 Number of loans (not in thousands) 129 338 |
Securitizations and Variable _2
Securitizations and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Summary of Select Information Related to VIEs | The following tables provide the classifications of assets and liabilities on the Company’s Consolidated Balance Sheets for its transactions with consolidated and unconsolidated VIEs at December 31, 2020 and 2019. Additionally, the assets and liabilities in the tables below exclude intercompany balances that eliminate in consolidation: December 31, 2020 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 15,983 $ — $ 15,983 Securities available for sale at fair value — 142,026 142,026 Loans held for investment at fair value 52,620 — 52,620 Loans held for investment by the Company at fair value 50,102 — 50,102 Loans held for sale by the Company at fair value 98,190 — 98,190 Accrued interest receivable 1,134 87 1,221 Other assets 136 32,778 32,914 Total assets $ 218,165 $ 174,891 $ 393,056 Liabilities Accrued interest payable $ 721 $ — $ 721 Accrued expenses and other liabilities 8 — 8 Notes, certificates and secured borrowings at fair value 52,620 — 52,620 Payable to Structured Program note and certificate holders at fair value 152,808 — 152,808 Total liabilities 206,157 — 206,157 Total net assets $ 12,008 $ 174,891 $ 186,899 December 31, 2019 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 30,046 $ — $ 30,046 Securities available for sale at fair value — 220,135 220,135 Loans held for investment at fair value 197,842 — 197,842 Loans held for investment by the Company at fair value 40,251 — 40,251 Loans held for sale by the Company at fair value 551,455 — 551,455 Accrued interest receivable 4,431 877 5,308 Other assets 1,359 52,098 53,457 Total assets $ 825,384 $ 273,110 $ 1,098,494 Liabilities Accrued interest payable $ 3,185 $ — $ 3,185 Accrued expenses and other liabilities 244 — 244 Notes, certificates and secured borrowings at fair value 197,842 — 197,842 Payable to Structured Program note and certificate holders at fair value 40,610 — 40,610 Credit facilities and securities sold under repurchase agreements 387,251 — 387,251 Total liabilities 629,132 — 629,132 Total net assets $ 196,252 $ 273,110 $ 469,362 The following tables present a summary of financial assets and liabilities from the Company’s involvement with consolidated VIEs at December 31, 2020 and 2019: December 31, 2020 Assets Liabilities Net Assets LC Trust $ 55,447 $ (53,068) $ 2,379 Consolidated trusts 162,460 (153,089) 9,371 Warehouse credit facility 258 — 258 Total consolidated VIEs $ 218,165 $ (206,157) $ 12,008 December 31, 2019 Assets Liabilities Net Assets LC Trust $ 201,696 $ (199,520) $ 2,176 Consolidated trusts 43,300 (40,687) 2,613 Warehouse credit facilities 580,388 (388,925) 191,463 Total consolidated VIEs $ 825,384 $ (629,132) $ 196,252 The following tables summarize unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary at December 31, 2020 and 2019: December 31, 2020 Carrying Value Total VIE Assets Securities Available for Sale Accrued Interest Receivable Other Assets Net Assets Unconsolidated Trusts $ 1,267,611 $ 57,511 $ 48 $ 9,606 $ 67,165 Certificate Program 1,931,429 84,515 39 15,397 99,951 Investment Fund 34,376 — — 7,775 7,775 Total unconsolidated VIEs $ 3,233,416 $ 142,026 $ 87 $ 32,778 $ 174,891 December 31, 2020 Maximum Exposure to Loss Securities Available for Sale Accrued Interest Receivable Other Assets Total Exposure Unconsolidated Trusts $ 57,511 $ 48 $ 9,606 $ 67,165 Certificate Program 84,515 39 15,397 99,951 Investment Fund — — 7,775 7,775 Total unconsolidated VIEs $ 142,026 $ 87 $ 32,778 $ 174,891 December 31, 2019 Carrying Value Total VIE Assets Securities Available for Sale Accrued Interest Receivable Other Assets Net Assets Unconsolidated Trusts $ 1,909,219 $ 93,881 $ 362 $ 18,768 $ 113,011 Certificate Program 2,585,957 126,254 515 25,588 152,357 Investment Fund 34,170 — — 7,742 7,742 Total unconsolidated VIEs $ 4,529,346 $ 220,135 $ 877 $ 52,098 $ 273,110 December 31, 2019 Maximum Exposure to Loss Securities Available for Sale Accrued Interest Receivable Other Assets Total Exposure Unconsolidated Trusts $ 93,881 $ 362 $ 18,768 $ 113,011 Certificate Program 126,254 515 25,588 152,357 Investment Fund — — 7,742 7,742 Total unconsolidated VIEs $ 220,135 $ 877 $ 52,098 $ 273,110 |
Summary of Activity Related to Personal Whole Loan Securitizations | The following table summarizes activity related to the Unconsolidated Trusts and Certificate Program trusts, with the transfers accounted for as a sale on the Company’s consolidated financial statements for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Unconsolidated Trusts Unconsolidated Certificate Unconsolidated Trusts Unconsolidated Certificate Principal derecognized from loans securitized or sold (1) $ 255,203 $ 971,738 $ 1,553,847 $ 2,868,709 Net gains (losses) recognized from loans securitized or sold $ (20) $ 7,897 $ 4,809 $ 32,417 Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement (2) $ 12,707 $ 35,836 $ 75,924 $ 140,825 Cash proceeds from loans securitized or sold $ 237,764 $ 598,694 $ 1,212,521 $ 2,555,713 Cash proceeds from servicing and other administrative fees on loans securitized or sold $ 17,684 $ 26,822 $ 16,961 $ 17,071 Cash proceeds for interest received on senior securities and subordinated securities $ 4,559 $ 8,251 $ 5,022 $ 7,717 (1) Included non-cash purchase and sale of loans requested by investors to facilitate a Structured Program transaction during the third quarter of 2020. (2) For Structured Program transactions, the Company retained asset-backed senior securities of $26.3 million and $98.7 million, CLUB Certificate asset-backed securities of $18.3 million and $101.3 million, and asset-backed subordinated securities of $4.0 million and $16.8 million for the years ended December 31, 2020 and 2019, respectively. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Loans, Loan Servicing Rights, Related Notes and Certificates | The following tables present the fair value hierarchy for assets and liabilities measured at fair value at December 31, 2020 and 2019: December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Loans held for investment $ — $ — $ 636,686 $ 636,686 Loans held for investment by the Company — — 49,954 49,954 Loans held for sale by the Company — — 121,902 121,902 Securities available for sale: Asset-backed senior securities and subordinated securities — 75,372 16,515 91,887 CLUB Certificate asset-backed securities — — 50,139 50,139 Other securities — 200 — 200 Total securities available for sale — 75,572 66,654 142,226 Servicing assets — — 56,347 56,347 Total assets $ — $ 75,572 $ 931,543 $ 1,007,115 Liabilities: Notes, certificates and secured borrowings $ — $ — $ 636,774 $ 636,774 Payable to Structured Program note and certificate holders — — 152,808 152,808 Deferred revenue — — 4,776 4,776 Loan trailing fee liability — — 7,494 7,494 Total liabilities $ — $ — $ 801,852 $ 801,852 December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for investment $ — $ — $ 1,079,315 $ 1,079,315 Loans held for investment by the Company — — 43,693 43,693 Loans held for sale by the Company — — 722,355 722,355 Securities available for sale: Asset-backed senior securities and subordinated securities — 109,339 21,090 130,429 CLUB Certificate asset-backed securities — — 89,706 89,706 Corporate debt securities — 14,343 — 14,343 Certificates of deposit — 13,100 — 13,100 Other asset-backed securities — 12,080 — 12,080 Commercial paper — 9,274 — 9,274 U.S. agency securities — 1,995 — 1,995 Total securities available for sale — 160,131 110,796 270,927 Servicing assets — — 89,680 89,680 Total assets $ — $ 160,131 $ 2,045,839 $ 2,205,970 Liabilities: Note, certificates and secured borrowings $ — $ — $ 1,081,466 $ 1,081,466 Payable to Structured Program note and certificate holders — — 40,610 40,610 Loan trailing fee liability — — 11,099 11,099 Total liabilities $ — $ — $ 1,133,175 $ 1,133,175 |
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans held for investment, notes, certificates and secured borrowings at December 31, 2020 and 2019: Loans Held for Investment, Notes, Certificates and Secured Borrowings December 31, 2020 December 31, 2019 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 7.6 % 15.0 % 9.4 % 6.0 % 12.0 % 7.9 % Net cumulative expected loss rates (1) 4.3 % 28.1 % 11.2 % 3.6 % 34.9 % 11.9 % Cumulative expected prepayment rates (1) 27.3 % 35.7 % 30.4 % 28.7 % 38.6 % 31.7 % (1) Expressed as a percentage of the original principal balance of the loan, note, certificate or secured borrowing. The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans invested in by the Company at December 31, 2020 and 2019: Loans Invested in by the Company December 31, 2020 December 31, 2019 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 8.7 % 16.2 % 9.6 % 6.0 % 11.5 % 7.8 % Net cumulative expected loss rates (1) 5.0 % 28.0 % 8.9 % 3.6 % 36.6 % 10.9 % Cumulative expected prepayment rates (1) 26.8 % 41.0 % 30.5 % 27.3 % 41.0 % 31.6 % (1) Expressed as a percentage of the original principal balance of the loan. The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for asset-backed securities related to Structured Program transactions at December 31, 2020 and 2019: Asset-Backed Securities Related to Structured Program Transactions December 31, 2020 December 31, 2019 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 2.2 % 25.1 % 8.4 % 3.4 % 20.7 % 8.8 % Net cumulative expected loss rates (1) 5.4 % 28.9 % 18.8 % 4.5 % 37.9 % 19.2 % Cumulative expected prepayment rates (1) 6.3 % 30.5 % 24.8 % 17.3 % 35.1 % 29.4 % (1) Expressed as a percentage of the outstanding collateral balance. The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for servicing assets at December 31, 2020 and 2019: Servicing Assets December 31, 2020 December 31, 2019 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rates 4.8 % 16.4 % 9.9 % 2.9 % 14.8 % 8.6 % Net cumulative expected loss rates (1) 4.5 % 26.3 % 12.5 % 3.7 % 36.1 % 12.4 % Cumulative expected prepayment rates (1) 27.0 % 38.9 % 31.2 % 27.5 % 41.8 % 32.5 % Total market servicing rates (% per annum on outstanding principal balance) (2) 0.62 % 0.62 % 0.62 % 0.66 % 0.66 % 0.66 % (1) Expressed as a percentage of the original principal balance of the loan. (2) Includes collection fees estimated to be paid to a hypothetical third-party servicer. Significant Recurring Level 3 Fair Value Input Sensitivity The Company’s selection of the most representative market servicing rates for servicing assets is inherently judgmental. The Company reviews third-party servicing rates for its loans, loans in similar credit sectors, and market servicing benchmarking analyses provided by third-party valuation firms, when available. The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions as of December 31, 2020 and 2019: Servicing Assets December 31, 2020 December 31, 2019 Weighted-average market servicing rate assumptions 0.62 % 0.66 % Change in fair value from: Servicing rate increase by 0.10% $ (7,379) $ (13,978) Servicing rate decrease by 0.10% $ 7,379 $ 13,979 The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loan trailing fee liability at December 31, 2020 and 2019: Loan Trailing Fee Liability December 31, 2020 December 31, 2019 Minimum Maximum Weighted Minimum Maximum Weighted Discount rates 4.8 % 16.4 % 10.5 % 2.9 % 14.8 % 9.3 % Net cumulative expected loss rates (1) 4.5 % 26.3 % 14.3 % 3.7 % 36.0 % 14.4 % Cumulative expected prepayment rates (1) 27.1 % 39.0 % 31.6 % 28.5 % 41.7 % 33.0 % (1) Expressed as a percentage of the original principal balance of the loan. |
Additional Information about Level 3 Measured at Fair Value on Recurring Basis | The following table presents additional information about Level 3 loans held for investment, loans held for sale, and notes, certificates and secured borrowings measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: Loans Held for Investment Loans Held for Sale Notes, Certificates Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2018 $ 2,013,438 $ (130,187) $ 1,883,251 $ — $ — $ — $ 2,033,258 $ (127,383) $ 1,905,875 Purchases 632,962 (21) 632,941 2,490,734 (26,560) 2,464,174 — — — Transfers (to) from loans held for investment and/or loans held for sale (123,036) — (123,036) 122,330 — 122,330 — — — Issuances — — — — — — 632,962 — 632,962 Sales — — — (2,613,064) 24,789 (2,588,275) — — — Principal payments and retirements (1,183,670) — (1,183,670) — — — (1,326,526) 14 (1,326,512) Charge-offs, net of recoveries (190,806) 138,857 (51,949) — — — (190,806) 135,785 (55,021) Change in fair value recorded in earnings — (78,222) (78,222) — 1,771 1,771 — (75,838) (75,838) Balance at December 31, 2019 $ 1,148,888 $ (69,573) $ 1,079,315 $ — $ — $ — $ 1,148,888 $ (67,422) $ 1,081,466 Purchases 314,995 — 314,995 1,564,081 (40,167) 1,523,914 — — — Transfers (to) from loans held for investment and/or loans held for sale (17,916) — (17,916) 17,413 — 17,413 — — — Issuances — — — — — — 314,995 — 314,995 Sales — — — (1,581,494) 52,010 (1,529,484) — — — Principal payments and retirements (687,723) — (687,723) — — — (705,639) — (705,639) Charge-offs, net of recoveries (78,341) 39,641 (38,700) — — — (78,341) 37,161 (41,180) Change in fair value recorded in earnings — (13,285) (13,285) — (11,843) (11,843) — (12,868) (12,868) Balance at December 31, 2020 $ 679,903 $ (43,217) $ 636,686 $ — $ — $ — $ 679,903 $ (43,129) $ 636,774 |
Schedule of Fair Value Sensitivity of Loans | The fair value sensitivity of loans invested in by the Company to adverse changes in key assumptions as of December 31, 2020 and 2019, are as follows: December 31, 2020 December 31, 2019 Fair value of loans invested in by the Company $ 171,856 $ 766,048 Expected weighted-average life (in years) 1.2 1.5 Discount rates 100 basis point increase $ (1,692) $ (9,806) 200 basis point increase $ (3,355) $ (19,410) Expected credit loss rates on underlying loans 10% adverse change $ (1,739) $ (9,558) 20% adverse change $ (3,514) $ (19,136) Expected prepayment rates 10% adverse change $ (454) $ (2,429) 20% adverse change $ (924) $ (4,740) The following tables present adverse changes to the fair value sensitivity of Level 2 and Level 3 asset-backed securities related to Structured Program transactions to changes in key assumptions at December 31, 2020 and 2019: December 31, 2020 Asset-Backed Securities Related to Senior Subordinated Securities CLUB Certificates Fair value of interests held $ 75,372 $ 16,515 $ 50,139 Expected weighted-average life (in years) 0.9 1.4 0.9 Discount rates 100 basis point increase $ (579) $ (161) $ (405) 200 basis point increase $ (1,145) $ (343) $ (800) Expected credit loss rates on underlying loans 10% adverse change $ — $ (1,831) $ (1,528) 20% adverse change $ — $ (3,718) $ (3,095) Expected prepayment rates 10% adverse change $ — $ (791) $ (659) 20% adverse change $ — $ (1,736) $ (1,343) December 31, 2019 Asset-Backed Securities Related to Senior Subordinated Securities CLUB Certificates Fair value of interests held $ 109,339 $ 21,090 $ 89,706 Expected weighted-average life (in years) 1.1 1.4 1.1 Discount rates 100 basis point increase $ (1,050) $ (300) $ (823) 200 basis point increase $ (2,076) $ (513) $ (1,627) Expected credit loss rates on underlying loans 10% adverse change $ — $ (2,162) $ (2,163) 20% adverse change $ — $ (4,273) $ (4,311) Expected prepayment rates 10% adverse change $ — $ (814) $ (654) 20% adverse change $ — $ (1,495) $ (1,279) |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Table | The following table presents additional information about Level 3 loans invested in by the Company measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: Loans Held For Investment Loans Held For Sale Total Loans Invested Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at $ 3,518 $ (935) $ 2,583 $ 869,715 $ (29,694) $ 840,021 $ 873,233 $ (30,629) $ 842,604 Purchases 2,993 (2,303) 690 5,343,146 1 5,343,147 5,346,139 (2,302) 5,343,837 Transfers (to) from loans held for investment and/or loans held for sale 49,996 (1,471) 48,525 (49,290) 1,471 (47,819) 706 — 706 Sales — — — (5,122,450) 119,369 (5,003,081) (5,122,450) 119,369 (5,003,081) Principal payments and retirements (5,214) — (5,214) (268,366) — (268,366) (273,580) — (273,580) Charge-offs, net of recoveries (4,251) 2,169 (2,082) (25,361) 23,973 (1,388) (29,612) 26,142 (3,470) Change in fair value recorded in earnings — (809) (809) — (140,159) (140,159) — (140,968) (140,968) Balance at $ 47,042 $ (3,349) $ 43,693 $ 747,394 $ (25,039) $ 722,355 $ 794,436 $ (28,388) $ 766,048 Purchases 1,435 (1,296) 139 1,568,844 (6) 1,568,838 1,570,279 (1,302) 1,568,977 Transfers (to) from loans held for investment and/or loans held for sale 41,934 — 41,934 (41,431) — (41,431) 503 — 503 Sales — — — (1,907,446) 87,723 (1,819,723) (1,907,446) 87,723 (1,819,723) Principal payments and retirements (29,640) — (29,640) (207,483) — (207,483) (237,123) — (237,123) Charge-offs, net of recoveries (4,383) 906 (3,477) (27,278) 25,627 (1,651) (31,661) 26,533 (5,128) Change in fair value recorded in earnings — (2,695) (2,695) — (99,003) (99,003) — (101,698) (101,698) Balance at $ 56,388 $ (6,434) $ 49,954 $ 132,600 $ (10,698) $ 121,902 $ 188,988 $ (17,132) $ 171,856 The following table presents additional information about Level 3 asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Fair value at beginning of period $ 110,796 $ 60,279 Additions 27,578 118,721 Redemptions (5,215) (17,900) Transfers (517) — Cash received (72,258) (45,701) Change in unrealized gain (loss) 2,578 (992) Accrued interest 7,075 — Provision for credit loss expense (3,383) — Other-than-temporary impairment — (3,611) Fair value at end of period $ 66,654 $ 110,796 The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: Servicing Assets Fair value at December 31, 2018 $ 64,006 Issuances (1) 79,692 Change in fair value, included in investor fees (58,172) Other net changes included in deferred revenue 4,154 Fair value at December 31, 2019 $ 89,680 Issuances (1) 33,990 Change in fair value, included in investor fees (58,730) Other net changes included in deferred revenue (8,593) Fair value at December 31, 2020 $ 56,347 (1) Represents the gains or losses on sales of the related loans. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents additional information about the Level 3 loan trailing fee liability measured at fair value on a recurring basis for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Fair value at beginning of period $ 11,099 $ 10,010 Issuances 2,978 7,815 Cash payment of Loan Trailing Fee (7,402) (7,908) Change in fair value, included in Origination and Servicing 819 1,182 Fair value at end of period $ 7,494 $ 11,099 |
Fair Value, by Balance Sheet Grouping | The following tables present the fair value hierarchy for financial instruments, assets, and liabilities not recorded at fair value: December 31, 2020 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Cash and cash equivalents (1) $ 524,963 $ — $ 524,963 $ — $ 524,963 Restricted cash (1) 103,522 — 103,522 — 103,522 Servicer reserve receivable 22 — 22 — 22 Deposits 892 — 892 — 892 Total assets $ 629,399 $ — $ 629,399 $ — $ 629,399 Liabilities: Accrued expenses and other liabilities $ 13,552 $ — $ — $ 13,552 $ 13,552 Accounts payable 3,698 — 3,698 — 3,698 Payable to investors 40,286 — 40,286 — 40,286 Credit facilities and securities sold under repurchase agreements 104,989 — 65,121 39,868 104,989 Total liabilities $ 162,525 $ — $ 109,105 $ 53,420 $ 162,525 (1) Carrying amount approximates fair value due to the short maturity of these financial instruments. December 31, 2019 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Cash and cash equivalents (1) $ 243,779 $ — $ 243,779 $ — $ 243,779 Restricted cash (1) 243,343 — 243,343 — 243,343 Servicer reserve receivable 73 — 73 — 73 Deposits 953 — 953 — 953 Total assets $ 488,148 $ — $ 488,148 $ — $ 488,148 Liabilities: Accrued expenses and other liabilities $ 24,899 $ — $ — $ 24,899 $ 24,899 Accounts payable 10,855 — 10,855 — 10,855 Payable to investors 97,530 — 97,530 — 97,530 Credit facilities and securities sold under repurchase agreements 587,453 — 77,143 510,310 587,453 Total liabilities $ 720,737 $ — $ 185,528 $ 535,209 $ 720,737 (1) Carrying amount approximates fair value due to the short maturity of these financial instruments. |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software | Property, equipment and software, net, consist of the following: December 31, 2020 2019 Internally developed software (1) $ 101,953 $ 117,510 Leasehold improvements 35,140 39,315 Computer equipment 27,030 26,669 Purchased software 19,004 11,846 Furniture and fixtures 8,203 9,406 Construction in progress 2,761 4,937 Total property, equipment and software 194,091 209,683 Accumulated depreciation and amortization (97,450) (95,313) Total property, equipment and software, net $ 96,641 $ 114,370 (1) Includes $13.9 million and $21.3 million in development in progress as of December 31, 2020 and 2019, respectively. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other assets consist of the following: December 31, 2020 2019 Loan servicing assets, at fair value (1) $ 56,347 $ 89,680 Prepaid expenses 16,455 14,862 Accounts receivable 10,243 19,017 Other investments 8,275 8,242 Other 5,410 11,867 Total other assets $ 96,730 $ 143,668 (1) Loans underlying loan servicing rights had a total outstanding principal balance of $10.1 billion and $14.1 billion as of December 31, 2020 and 2019, respectively. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of customer relationships. The gross and net carrying values and accumulated amortization as of December 31, 2020 and 2019, were as follows: December 31, 2020 2019 Gross Carrying Value $ 39,500 $ 39,500 Accumulated Amortization (28,073) (24,951) Net Carrying Value $ 11,427 $ 14,549 |
Schedule of Expected Future Amortization Expense for Intangible Assets | The expected future amortization expense for intangible assets as of December 31, 2020, is as follows: Year Ending December 31, 2021 $ 2,746 2022 2,370 2023 1,994 2024 1,618 2025 1,241 Thereafter 1,458 Total $ 11,427 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following: December 31, 2020 2019 Accrued compensation $ 28,805 $ 30,484 Contingent liabilities (1) 21,592 16,000 Accrued expenses 14,382 36,797 Transaction fee refund reserve 14,119 25,541 Loan trailing fee liability, at fair value 7,494 11,099 Deferred revenue 4,923 13,688 Other 10,142 9,027 Total accrued expenses and other liabilities $ 101,457 $ 142,636 (1) See “ Note 19. Commitments and Contingencies ” for further information. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) represents other cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) were as follows: Year Ended December 31, 2020 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ 2,044 $ (5) $ 2,049 Other comprehensive income (loss) $ 2,044 $ (5) $ 2,049 Year Ended December 31, 2019 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ (526) $ 216 $ (742) Other comprehensive income (loss) $ (526) $ 216 $ (742) Year Ended December 31, 2018 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ 252 $ 83 $ 169 Other comprehensive income (loss) $ 252 $ 83 $ 169 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) balances were as follows: Total Balance at December 31, 2018 $ 157 Change in net unrealized gain (loss) on securities available for sale (742) Less: Other comprehensive income (loss) attributable to noncontrolling interests (20) Balance at December 31, 2019 $ (565) Change in net unrealized gain (loss) on securities available for sale 2,049 Balance at December 31, 2020 $ 1,484 |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | As of December 31, 2020 and 2019, the Company had shares of common stock reserved for future issuance as follows: December 31, 2020 2019 Available for future RSU, PBRSU and stock option grants 12,552,761 12,861,058 Unvested RSUs, PBRSUs and stock options outstanding 14,631,526 12,323,868 Available for ESPP (1) 4,134,033 3,123,203 Total reserved for future issuance 31,318,320 28,308,129 (1) In connection with the Company’s cost structure simplification efforts, future purchases through the Company’s employee stock purchase plan ( ESPP ) were suspended effective upon the completion of the offering period on May 10, 2019. |
Total Stock-Based Compensation Expense | Stock-based compensation expense was as follows for the periods presented: Year Ended December 31, 2020 2019 2018 RSUs and PBRSUs $ 60,745 $ 70,772 $ 66,005 Stock options 788 2,383 7,387 ESPP — 484 1,695 Total stock-based compensation expense $ 61,533 $ 73,639 $ 75,087 |
Stock-Based Compensation Expense Recorded in Consolidated Statement of Operations | The following table presents the Company’s stock-based compensation expense recorded in the Consolidated Statements of Operations: Year Ended December 31, 2020 2019 2018 Sales and marketing $ 4,104 $ 6,095 $ 7,362 Origination and servicing 2,689 3,155 4,322 Engineering and product development 13,411 19,860 20,478 Other general and administrative 41,329 44,529 42,925 Total stock-based compensation expense $ 61,533 $ 73,639 $ 75,087 |
Schedule of RSU Activity | The following table summarizes the activities for the Company’s RSUs during the year ended December 31, 2020: Number Weighted- Unvested at December 31, 2019 9,597,404 $ 16.78 Granted 11,247,846 $ 9.27 Vested (4,139,425) $ 15.66 Forfeited/expired (5,310,713) $ 13.61 Unvested at December 31, 2020 11,395,112 $ 11.26 |
Schedule of PBRSU Activity | The following table summarizes the activities for the Company’s PBRSUs during the year ended December 31, 2020: Number Weighted- Unvested at December 31, 2019 471,589 $ 16.94 Granted 1,424,438 $ 4.67 Vested (181,956) $ 17.34 Forfeited/expired (1) (272,760) $ 13.85 Unvested at December 31, 2020 1,441,311 $ 5.31 (1) Primarily relates to the portion of PBRSUs granted in 2019 that were unearned as a result of not achieving certain pre-established performance metrics during the performance period. |
Schedule of Options Activity | The following table summarizes the activities for the Company’s stock options during 2020: Number of Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) Outstanding at December 31, 2019 2,254,888 $ 29.27 Exercised (150,473) $ 0.75 Forfeited/Expired (309,299) $ 38.92 Outstanding at December 31, 2020 1,795,116 $ 29.99 3.66 $ 2,882 Exercisable at December 31, 2020 1,795,116 $ 29.99 3.66 $ 2,882 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company’s closing stock price of $10.56 as reported on the New York Stock Exchange on December 31, 2020. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | ncome tax expense (benefit) consisted of the following for the periods shown below: Year Ended December 31, 2020 2019 2018 Current: Federal $ (1) $ (141) $ (57) State (78) (60) 100 Total current tax expense (benefit) $ (79) $ (201) $ 43 Deferred: Federal $ — $ — $ — State — — — Total deferred tax expense (benefit) $ — $ — $ — Income tax expense (benefit) $ (79) $ (201) $ 43 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income taxes expected at the statutory federal income tax rate and income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018, is as follows: Year Ended December 31, 2020 2019 2018 Tax at federal statutory rate $ (39,399) $ (6,499) $ (26,936) State tax, net of federal tax benefit (81) (60) 100 Stock-based compensation expense 8,044 4,773 6,559 Research and development tax credits (994) (2,336) (7,839) Change in valuation allowance 29,728 (802) 19,140 Change in unrecognized tax benefit 497 1,168 3,920 Non-deductible expenses 2,278 3,250 5,143 Other (152) 305 (44) Income tax expense (benefit) $ (79) $ (201) $ 43 |
Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 were: December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 163,381 $ 118,090 Stock-based compensation 10,218 11,480 Reserves and accruals 15,652 23,008 Operating lease liabilities 28,032 33,824 Goodwill 17,375 19,818 Intangible assets 3,151 3,074 Tax credit carryforwards 18,215 16,679 Other 868 498 Total deferred tax assets 256,892 226,471 Valuation allowance (211,228) (169,526) Deferred tax assets – net of valuation allowance $ 45,664 $ 56,945 Deferred tax liabilities: Internally developed software $ (16,956) $ (20,225) Servicing fees (2,780) (4,389) Operating lease assets (22,048) (28,224) Change in tax method (1,769) (3,988) Other (2,111) (119) Total deferred tax liabilities $ (45,664) $ (56,945) Deferred tax asset (liability) – net $ — $ — |
Changes in Unrecognized Tax Benefit | A reconciliation of the beginning and ending balance of total unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018, is as follows: Year Ended December 31, 2020 2019 2018 Beginning balance $ 15,998 $ 13,377 $ 7,784 Gross increase for tax positions related to prior years — — 2,744 Gross increase for tax positions related to the current year 1,628 2,621 2,849 Ending balance $ 17,626 $ 15,998 $ 13,377 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Balance sheet information as of December 31, 2020 and 2019 related to leases was as follows: ROU Assets and Lease Liabilities December 31, 2020 December 31, 2019 Operating lease assets $ 74,037 $ 93,485 Operating lease liabilities (1) $ 94,538 $ 112,344 (1) The difference between operating lease assets and operating lease liabilities is the unamortized balance of deferred rent. |
Lease Costs | Components of net lease costs for the years ended December 31, 2020, 2019 and 2018, were as follows: Year Ended December 31, Net Lease Costs Income Statement Classification 2020 2019 2018 Operating lease costs (1) Other general and administrative expense $ (17,346) $ (19,502) $ (17,183) Sublease revenue Other revenue 6,146 4,637 397 Net lease costs $ (11,200) $ (14,865) $ (16,786) |
Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s operating leases for the year ended December 31, 2020 was as follows: Year Ended December 31, 2020 2019 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ 84 $ 15,277 (1) Represents non-cash activity and, accordingly, is not reflected in the Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease right-of-use asset. |
Future Minimum Undiscounted Lease Payments | The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of December 31, 2020 were as follows: Operating Lease Sublease Net 2021 $ 19,271 $ (6,767) $ 12,504 2022 14,134 (2,918) 11,216 2023 10,761 — 10,761 2024 11,072 — 11,072 2025 11,393 — 11,393 Thereafter 56,990 — 56,990 Total lease payments (1) $ 123,621 $ (9,685) $ 113,936 Discount effect 29,083 Present value of future minimum lease payments $ 94,538 (1) As of December 31, 2020, the Company entered into an additional operating lease which had not yet commenced and is therefore not part of the table above nor included in the lease right-of-use asset and liability. This lease commenced when the Company obtained possession of the underlying asset, which was on January 1, 2021. The lease term is 8.25 years and has an undiscounted future rent payment of approximately $8.6 million. |
Weighted-average Remaining Lease Term and Discount Rate | The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows: Lease Term and Discount Rate December 31, 2020 Weighted-average remaining lease term (in years) 8.96 Weighted-average discount rate 5.76 % |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table presents the restructuring costs for the year ended December 31, 2020, recorded in the Company’s Consolidated Statements of Operations: Year Ended December 31, 2020 Sales and marketing $ 1,271 Origination and servicing 793 Engineering and product development 7,245 Other general and administrative 8,480 Total $ 17,789 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Class of Stock [Line Items] | |
Cash maturity period | 3 months |
Non-accrual status threshold | 90 days |
Charge off threshold | 120 days |
Minimum | |
Class of Stock [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Maximum | |
Class of Stock [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | $ 0 | $ 0 | |
Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 212,651,000 | 604,234,000 | $ 530,587,000 |
Transferred over Time | Transaction Fees | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 207,640,000 | 598,760,000 | 526,942,000 |
Transferred over Time | Referral Fees | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 5,011,000 | $ 5,474,000 | $ 3,645,000 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 20, 2020 | Feb. 29, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
LendingClub net loss | $ (187,538) | ||||||
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 | |||||
Preferred stock, par value ($ per share) | $ 0.01 | ||||||
Payments of Dividends | $ 50,200 | $ 50,200 | $ 50,204 | $ 0 | $ 0 | ||
Common Stock | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
LendingClub net loss | (154,664) | (30,745) | (128,308) | ||||
Deemed dividend | (50,204) | 0 | 0 | ||||
Net loss attributable to stockholders | $ (204,868) | $ (30,745) | $ (128,308) | ||||
Weighted-average common shares - Basic and Diluted (in shares) | [1] | 77,934,302 | 87,278,596 | 84,583,461 | |||
Net loss per share attributable to common stockholders - Basic and Diluted (in USD per share) | [1] | $ (2.63) | $ (0.35) | $ (1.52) | |||
Conversion of stock, shares of common stock converted and retired (in shares) | 19,562,881 | 19,562,881 | |||||
Common Stock | Majority Shareholder | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Conversion of stock, shares of common stock converted and retired (in shares) | 19,562,881 | ||||||
Preferred Stock | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
LendingClub net loss | $ (32,874) | ||||||
Deemed dividend | $ (50,200) | 50,204 | |||||
Net loss attributable to stockholders | $ 17,330 | ||||||
Weighted-average common shares - Basic and Diluted (in shares) | [1] | 12,505,393 | 0 | 0 | |||
Net loss per share attributable to common stockholders - Basic and Diluted (in USD per share) | [1] | $ 1.39 | $ 0 | $ 0 | |||
[1] | See “ Notes to Consolidated Financial Statements – Note 4. Net Income (Loss) Per Share ” and “ Note 15. Stockholders' Equity ” for additional information. |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average common shares excluded (in shares) | 13,027,089 | 515,439 | 957,384 |
Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average common shares excluded (in shares) | 12,505,393 | 0 | 0 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average common shares excluded (in shares) | 221,949 | 455,627 | 893,425 |
RSUs and PBRSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average common shares excluded (in shares) | 299,747 | 59,812 | 63,959 |
Securities Available for Sale -
Securities Available for Sale - Amortized cost/fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Securities Available-for-Sale [Line Items] | ||
Amortized cost | $ 159,164 | $ 271,173 |
Gross unrealized gains | 2,771 | 1,078 |
Gross unrealized losses | (973) | (1,324) |
Allowance for credit losses | (18,736) | 0 |
Fair value | 142,226 | 270,927 |
Asset-backed senior securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Amortized cost | 75,332 | 108,780 |
Gross unrealized gains | 67 | 597 |
Gross unrealized losses | (27) | (38) |
Allowance for credit losses | 0 | |
Fair value | 75,372 | 109,339 |
Securities pledged as collateral | 133,500 | 174,800 |
CLUB Certificate asset-backed securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Amortized cost | 54,525 | 90,728 |
Gross unrealized gains | 576 | 41 |
Gross unrealized losses | (772) | (1,063) |
Allowance for credit losses | (4,190) | 0 |
Fair value | 50,139 | 89,706 |
Asset-backed subordinated securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Amortized cost | 29,107 | 20,888 |
Gross unrealized gains | 2,128 | 423 |
Gross unrealized losses | (174) | (221) |
Allowance for credit losses | (14,546) | 0 |
Fair value | 16,515 | 21,090 |
Other securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Amortized cost | 200 | 12,075 |
Gross unrealized gains | 0 | 6 |
Gross unrealized losses | 0 | (1) |
Allowance for credit losses | 0 | |
Fair value | 200 | 12,080 |
Corporate debt securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Amortized cost | 14,333 | |
Gross unrealized gains | 11 | |
Gross unrealized losses | (1) | |
Fair value | 14,343 | |
Certificates of deposit | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Amortized cost | 13,100 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 13,100 | |
Commercial paper | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Amortized cost | 9,274 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 9,274 | |
U.S. agency securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Amortized cost | 1,995 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Fair value | 1,995 | |
Asset-backed securities related to structured program transactions | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value | $ 119,300 | $ 219,000 |
Securities Available for Sale_2
Securities Available for Sale - Unrealized losses (Details) $ in Thousands | Dec. 31, 2020USD ($)position | Dec. 31, 2019USD ($)position |
Schedule of Securities Available-for-Sale [Line Items] | ||
Less than 12 months, fair value | $ 26,678 | $ 99,025 |
Less than 12 months, unrealized losses | (855) | (1,289) |
12 months or longer, fair value | 6,052 | 1,875 |
12 months or longer, unrealized losses | (118) | (35) |
Fair value | 32,730 | 100,900 |
Unrealized losses | $ (973) | $ (1,324) |
Number of investment positions with unrealized losses | position | 55 | 70 |
Asset-backed securities related to Structured Program transactions | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Less than 12 months, fair value | $ 26,678 | $ 91,350 |
Less than 12 months, unrealized losses | (855) | (1,287) |
12 months or longer, fair value | 6,052 | 1,875 |
12 months or longer, unrealized losses | (118) | (35) |
Fair value | 32,730 | 93,225 |
Unrealized losses | $ (973) | (1,322) |
Corporate debt securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Less than 12 months, fair value | 4,613 | |
Less than 12 months, unrealized losses | (1) | |
12 months or longer, fair value | 0 | |
12 months or longer, unrealized losses | 0 | |
Fair value | 4,613 | |
Unrealized losses | (1) | |
Other securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Less than 12 months, fair value | 3,062 | |
Less than 12 months, unrealized losses | (1) | |
12 months or longer, fair value | 0 | |
12 months or longer, unrealized losses | 0 | |
Fair value | 3,062 | |
Unrealized losses | $ (1) |
Securities Available for Sale_3
Securities Available for Sale - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Securities Available-for-Sale [Line Items] | |||
Other-than-temporary impairment charges | $ 3,600,000 | $ 3,000,000 | |
Credit losses recognized into earnings for OTTI securities | $ 0 | 0 | 0 |
Proceeds | 6,217,000 | 12,548,000 | 497,000 |
Realized gain (loss) from asset-backed securities related to Structured Program transactions | 0 | 0 | 0 |
Gross realized gains | 14,000 | 9,000 | 1,000 |
Gross realized losses | (3,000) | (1,000) | (3,000) |
Asset-backed securities related to Structured Program transactions | |||
Schedule of Securities Available-for-Sale [Line Items] | |||
Allowance for credit loss, period increase | 3,400,000 | ||
Other securities | |||
Schedule of Securities Available-for-Sale [Line Items] | |||
Proceeds | $ 1,300,000,000 | $ 4,500,000,000 | $ 2,000,000,000 |
Securities Available for Sale_4
Securities Available for Sale - Allowance for Credit Losses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 0 |
Provision for credit loss expense | (3,382) |
Allowance arising from PCD financial assets | (15,354) |
Ending balance | (18,736) |
CLUB Certificate asset-backed securities | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 0 |
Provision for credit loss expense | (236) |
Allowance arising from PCD financial assets | (3,954) |
Ending balance | (4,190) |
Asset-backed subordinated securities | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 0 |
Provision for credit loss expense | (3,146) |
Allowance arising from PCD financial assets | (11,400) |
Ending balance | $ (14,546) |
Securities Available for Sale_5
Securities Available for Sale - Securities Purchased with Credit Deterioration (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Purchase price of PCD securities at acquisition | $ 27,034 |
Allowance for credit losses on PCD securities at acquisition | 15,353 |
Par value of acquired PCD securities at acquisition | $ 42,387 |
Securities Available for Sale_6
Securities Available for Sale - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Within 1 year | $ 200 | |
Securities available for sale at amortized cost | 159,164 | $ 271,173 |
Fair Value | ||
Within 1 year | 200 | |
Fair value | 142,226 | 270,927 |
Other securities | ||
Amortized Cost | ||
Within 1 year | 200 | |
Securities available for sale at amortized cost | 200 | 12,075 |
Fair Value | ||
Within 1 year | 200 | |
Fair value | 200 | $ 12,080 |
Asset-backed securities related to Structured Program transactions | ||
Amortized Cost | ||
Securities available for sale at amortized cost | 158,964 | |
Fair Value | ||
Fair value | $ 142,026 |
Loans Held for Investment, Lo_3
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings - Fair value on a recurring basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held for investment at fair value | [1] | $ 636,686 | $ 1,079,315 |
Notes, certificates and secured borrowings, fair value | [1] | 636,774 | 1,081,466 |
Loans held for sale by the Company at fair value | [1] | 121,902 | 722,355 |
Fair Value, Measurements, Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes, certificates and secured borrowings, fair value | 636,774 | 1,081,466 | |
Notes | 583,219 | 863,488 | |
Certificates | 52,620 | 197,842 | |
Secured borrowings | 935 | 20,136 | |
Fair Value, Measurements, Recurring | Loans Invested in by Company | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate principal balance outstanding | 188,988 | 794,436 | |
Net fair value adjustments | (17,132) | (28,388) | |
Fair value of loans invested in by the Company | 171,856 | 766,048 | |
Fair Value, Measurements, Recurring | Loans Held for Investment | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate principal balance outstanding | 679,903 | 1,148,888 | |
Net fair value adjustments | (43,217) | (69,573) | |
Loans held for investment at fair value | 636,686 | 1,079,315 | |
Fair Value, Measurements, Recurring | Loans Held for Investment | Loans Invested in by Company | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate principal balance outstanding | 56,388 | 47,042 | |
Net fair value adjustments | (6,434) | (3,349) | |
Loans held for investment at fair value | 49,954 | 43,693 | |
Fair Value, Measurements, Recurring | Notes, Certificates and Secured Borrowings | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate principal balance outstanding | 679,903 | 1,148,888 | |
Net fair value adjustments | (43,129) | (67,422) | |
Notes, certificates and secured borrowings, fair value | 636,774 | 1,081,466 | |
Fair Value, Measurements, Recurring | Loans Held for Sale | Loans Invested in by Company | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate principal balance outstanding | 132,600 | 747,394 | |
Net fair value adjustments | (10,698) | (25,039) | |
Loans held for sale by the Company at fair value | $ 121,902 | $ 722,355 | |
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Loans Held for Investment, Lo_4
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||
Net interest income | $ (49,056,000) | $ (46,232,000) | $ 1,169,000 | |
Payable to Structured Program note and certificate holders at fair value | [1] | 152,808,000 | 40,610,000 | |
Loans Invested in by Company | ||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||
Fair value of loans invested in by the Company | 171,856,000 | 842,604,000 | ||
Net fair value adjustment for net unrealized losses | (17,132,000) | (28,388,000) | (30,629,000) | |
Net change in fair value recorded in earnings on loans invested in by the Company | (101,698,000) | (140,968,000) | (102,000,000) | |
Outstanding principal balance, purchases of loans | 1,570,279,000 | 5,346,139,000 | ||
Outstanding principal balance, sales | 1,907,446,000 | 5,122,450,000 | ||
Loans Invested in by Company | Fair Value, Measurements, Recurring | ||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||
Net interest income | 59,000,000 | 80,900,000 | $ 90,900,000 | |
Fair value of loans invested in by the Company | 171,856,000 | 766,048,000 | ||
Secured Borrowings | Loans Held for Investment | ||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||
Loans pledged as collateral | 800,000 | 18,000,000 | ||
Warehouse credit facility | Loans Held For Sale | ||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||
Loans pledged as collateral | 0 | 551,500,000 | ||
Consolidated VIEs | ||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||
Payable to Structured Program note and certificate holders at fair value | 152,808,000 | 40,610,000 | ||
Loans Related to Consolidation of Securitization Trust | Consolidated VIEs | Loans Held for Investment | Payable to Securitization Note and Certificate Holders | ||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||
Payable to Structured Program note and certificate holders at fair value | 152,800,000 | 40,600,000 | ||
Loans Related to Consolidation of Securitization Trust | Consolidated VIEs | Loans Invested in by Company | ||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||
Fair value of loans invested in by the Company | $ 40,300,000 | |||
Loans Related to Consolidation of Securitization Trust | Consolidated VIEs | Payables to Securitization Holders | Loans Held for Investment | ||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||
Loans pledged as collateral | $ 148,300,000 | |||
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Loans Held for Investment, Lo_5
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings - Outstanding loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($)Loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-accrual status threshold | 90 days | |
Loans and Loans Held for Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-accrual status threshold | 90 days | |
Loans Held for Investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding principal balance, past 90 days and non-accrual | $ 4,690 | $ 10,755 |
Net fair vale adjustments, past 90 days and non-accrual | (3,883) | (9,663) |
Fair value, past 90 days and non-accrual | $ 807 | $ 1,092 |
Number of loans 90 days or more past due and nonaccrual | Loan | 769 | 1,428 |
Loans Invested in by Company | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding principal balance, past 90 days and non-accrual | $ 1,090 | $ 2,315 |
Net fair vale adjustments, past 90 days and non-accrual | (921) | (2,016) |
Fair value, past 90 days and non-accrual | $ 169 | $ 299 |
Number of loans 90 days or more past due and nonaccrual | Loan | 129 | 338 |
Securitizations and Variable _3
Securitizations and Variable Interest Entities - Summary of Select Information Related to VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Restricted cash | [1] | $ 103,522 | $ 243,343 |
Securities available for sale at fair value | 142,226 | 270,927 | |
Loans held for investment at fair value | [1] | 636,686 | 1,079,315 |
Loans held for investment by the Company at fair value | [1] | 49,954 | 43,693 |
Loans held for sale by the Company at fair value | [1] | 121,902 | 722,355 |
Accrued interest receivable | [1] | 5,205 | 12,857 |
Other assets | [1] | 96,730 | 143,668 |
Accrued interest payable | [1] | 4,572 | 9,260 |
Accrued expenses and other liabilities | [1] | 101,457 | 142,636 |
Notes, certificates and secured borrowings at fair value | [1] | 636,774 | 1,081,466 |
Payable to Structured Program note and certificate holders | [1] | 152,808 | 40,610 |
Credit facilities and securities sold under repurchase agreements | [1] | 104,989 | 587,453 |
Total liabilities | 1,139,122 | 2,082,154 | |
Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 15,983 | 30,046 | |
Securities available for sale at fair value | 0 | 0 | |
Loans held for investment at fair value | 52,620 | 197,842 | |
Loans held for investment by the Company at fair value | 50,102 | 40,251 | |
Loans held for sale by the Company at fair value | 98,190 | 551,455 | |
Accrued interest receivable | 1,134 | 4,431 | |
Other assets | 136 | 1,359 | |
Total assets | 218,165 | 825,384 | |
Accrued interest payable | 721 | 3,185 | |
Accrued expenses and other liabilities | 8 | 244 | |
Notes, certificates and secured borrowings at fair value | 52,620 | 197,842 | |
Payable to Structured Program note and certificate holders | 152,808 | 40,610 | |
Credit facilities and securities sold under repurchase agreements | 0 | 387,251 | |
Total liabilities | 206,157 | 629,132 | |
Net assets | 12,008 | 196,252 | |
Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 0 | 0 | |
Securities available for sale at fair value | 142,026 | 220,135 | |
Loans held for investment at fair value | 0 | 0 | |
Loans held for investment by the Company at fair value | 0 | 0 | |
Loans held for sale by the Company at fair value | 0 | 0 | |
Accrued interest receivable | 87 | 877 | |
Other assets | 32,778 | 52,098 | |
Total assets | 174,891 | 273,110 | |
Accrued interest payable | 0 | 0 | |
Accrued expenses and other liabilities | 0 | 0 | |
Notes, certificates and secured borrowings at fair value | 0 | 0 | |
Payable to Structured Program note and certificate holders | 0 | 0 | |
Credit facilities and securities sold under repurchase agreements | 0 | ||
Total liabilities | 0 | 0 | |
Net assets | 174,891 | 273,110 | |
Total | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 15,983 | 30,046 | |
Securities available for sale at fair value | 142,026 | 220,135 | |
Loans held for investment at fair value | 52,620 | 197,842 | |
Loans held for investment by the Company at fair value | 50,102 | 40,251 | |
Loans held for sale by the Company at fair value | 98,190 | 551,455 | |
Accrued interest receivable | 1,221 | 5,308 | |
Other assets | 32,914 | 53,457 | |
Total assets | 393,056 | 1,098,494 | |
Accrued interest payable | 721 | 3,185 | |
Accrued expenses and other liabilities | 8 | 244 | |
Notes, certificates and secured borrowings at fair value | 52,620 | 197,842 | |
Payable to Structured Program note and certificate holders | 152,808 | 40,610 | |
Credit facilities and securities sold under repurchase agreements | 387,251 | ||
Total liabilities | 206,157 | 629,132 | |
Net assets | $ 186,899 | $ 469,362 | |
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Securitizations and Variable _4
Securitizations and Variable Interest Entities - Summary of Financial Asset and Liability Involvement with Consolidated VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Assets | $ 1,863,293 | $ 2,982,341 |
Liabilities | (1,139,122) | (2,082,154) |
Consolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 218,165 | 825,384 |
Liabilities | (206,157) | (629,132) |
Net Assets | 12,008 | 196,252 |
Consolidated VIEs | LC Trust | ||
Variable Interest Entity [Line Items] | ||
Assets | 55,447 | 201,696 |
Liabilities | (53,068) | (199,520) |
Net Assets | 2,379 | 2,176 |
Consolidated VIEs | Consolidated trusts | ||
Variable Interest Entity [Line Items] | ||
Assets | 162,460 | 43,300 |
Liabilities | (153,089) | (40,687) |
Net Assets | 9,371 | 2,613 |
Consolidated VIEs | Warehouse credit facility | ||
Variable Interest Entity [Line Items] | ||
Assets | 258 | 580,388 |
Liabilities | 0 | (388,925) |
Net Assets | $ 258 | $ 191,463 |
Securitizations and Variable _5
Securitizations and Variable Interest Entities - Unconsolidated VIEs with Significant Continuing Involvement (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Carrying value, assets | $ 1,863,293 | $ 2,982,341 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 3,233,416 | 4,529,346 |
Carrying value, net assets | 174,891 | 273,110 |
Maximum exposure to loss | 174,891 | 273,110 |
Securities Available for Sale | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 142,026 | 220,135 |
Maximum exposure to loss | 142,026 | 220,135 |
Accrued Interest Receivable | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 87 | 877 |
Maximum exposure to loss | 87 | 877 |
Other Assets | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 32,778 | 52,098 |
Maximum exposure to loss | 32,778 | 52,098 |
Unconsolidated Trusts | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 1,267,611 | 1,909,219 |
Carrying value, net assets | 67,165 | 113,011 |
Maximum exposure to loss | 67,165 | 113,011 |
Unconsolidated Trusts | Securities Available for Sale | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 57,511 | 93,881 |
Maximum exposure to loss | 57,511 | 93,881 |
Unconsolidated Trusts | Accrued Interest Receivable | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 48 | 362 |
Maximum exposure to loss | 48 | 362 |
Unconsolidated Trusts | Other Assets | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 9,606 | 18,768 |
Maximum exposure to loss | 9,606 | 18,768 |
Certificate Program | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 1,931,429 | 2,585,957 |
Carrying value, net assets | 99,951 | 152,357 |
Maximum exposure to loss | 99,951 | 152,357 |
Certificate Program | Securities Available for Sale | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 84,515 | 126,254 |
Maximum exposure to loss | 84,515 | 126,254 |
Certificate Program | Accrued Interest Receivable | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 39 | 515 |
Maximum exposure to loss | 39 | 515 |
Certificate Program | Other Assets | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 15,397 | 25,588 |
Maximum exposure to loss | 15,397 | 25,588 |
Investment Fund | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 34,376 | 34,170 |
Carrying value, net assets | 7,775 | 7,742 |
Maximum exposure to loss | 7,775 | 7,742 |
Investment Fund | Securities Available for Sale | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Investment Fund | Accrued Interest Receivable | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Investment Fund | Other Assets | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value, assets | 7,775 | 7,742 |
Maximum exposure to loss | $ 7,775 | $ 7,742 |
Other Assets | ||
Variable Interest Entity [Line Items] | ||
Ownership (percent) | 22.00% | |
Investment | $ 7,800 |
Securitizations and Variable _6
Securitizations and Variable Interest Entities - Summary of Personal Whole Loan Securitizations and Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unconsolidated Securitization Trusts | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Principal derecognized from loans securitized or sold | $ 255,203 | $ 1,553,847 |
Net gains (losses) recognized from loans securitized or sold | (20) | 4,809 |
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement | 12,707 | 75,924 |
Cash proceeds from loans securitized or sold | 237,764 | 1,212,521 |
Cash proceeds from servicing and other administrative fees on loans securitized or sold | 17,684 | 16,961 |
Cash proceeds for interest received on senior securities and subordinated securities | 4,559 | 5,022 |
Unconsolidated Certificate Program Trusts | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Principal derecognized from loans securitized or sold | 971,738 | 2,868,709 |
Net gains (losses) recognized from loans securitized or sold | 7,897 | 32,417 |
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement | 35,836 | 140,825 |
Cash proceeds from loans securitized or sold | 598,694 | 2,555,713 |
Cash proceeds from servicing and other administrative fees on loans securitized or sold | 26,822 | 17,071 |
Cash proceeds for interest received on senior securities and subordinated securities | 8,251 | 7,717 |
Senior Securities | Structured Program Transactions | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Interest retained by the Company | 26,300 | 98,700 |
CLUB Certificate asset-backed securities | Structured Program Transactions | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Interest retained by the Company | 18,300 | 101,300 |
Subordinated Certificates | Structured Program Transactions | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Interest retained by the Company | $ 4,000 | $ 16,800 |
Securitizations and Variable _7
Securitizations and Variable Interest Entities - Off-balance Sheet Loans Sold or Securitized (Details) - Off-balance Sheet Loans - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding principal balance | $ 3,200 | $ 4,400 |
Off-balance sheet loans, 31 days or more past due | $ 94.8 | $ 145.6 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Loans, Loan Servicing Rights, Related Notes and Certificates (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | [1] | $ 636,686 | $ 1,079,315 |
Loans held for investment by the Company | [1] | 49,954 | 43,693 |
Loans held for sale by the Company | [1] | 121,902 | 722,355 |
Securities available for sale at fair value | 142,226 | 270,927 | |
Servicing assets | 56,347 | 89,680 | |
Total assets | 1,007,115 | 2,205,970 | |
Notes, certificates and secured borrowings | [1] | 636,774 | 1,081,466 |
Payable to Structured Program note and certificate holders | [1] | 152,808 | 40,610 |
Deferred revenue | 4,776 | ||
Loan trailing fee liability | 7,494 | 11,099 | |
Total liabilities | 801,852 | 1,133,175 | |
Asset-backed subordinated securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers | (517) | 0 | |
Level 1 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 0 | 0 | |
Loans held for investment by the Company | 0 | 0 | |
Loans held for sale by the Company | 0 | 0 | |
Securities available for sale at fair value | 0 | 0 | |
Servicing assets | 0 | 0 | |
Total assets | 0 | 0 | |
Notes, certificates and secured borrowings | 0 | 0 | |
Payable to Structured Program note and certificate holders | 0 | 0 | |
Deferred revenue | 0 | ||
Loan trailing fee liability | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 2 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 0 | 0 | |
Loans held for investment by the Company | 0 | 0 | |
Loans held for sale by the Company | 0 | 0 | |
Securities available for sale at fair value | 75,572 | 160,131 | |
Servicing assets | 0 | 0 | |
Total assets | 75,572 | 160,131 | |
Notes, certificates and secured borrowings | 0 | 0 | |
Payable to Structured Program note and certificate holders | 0 | 0 | |
Deferred revenue | 0 | ||
Loan trailing fee liability | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 636,686 | 1,079,315 | |
Loans held for investment by the Company | 49,954 | 43,693 | |
Loans held for sale by the Company | 121,902 | 722,355 | |
Securities available for sale at fair value | 66,654 | 110,796 | |
Servicing assets | 56,347 | 89,680 | |
Total assets | 931,543 | 2,045,839 | |
Notes, certificates and secured borrowings | 636,774 | 1,081,466 | |
Payable to Structured Program note and certificate holders | 152,808 | 40,610 | |
Deferred revenue | 4,776 | ||
Loan trailing fee liability | 7,494 | 11,099 | |
Total liabilities | 801,852 | 1,133,175 | |
Asset-backed senior securities and subordinated securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 91,887 | 130,429 | |
Asset-backed senior securities and subordinated securities | Level 1 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | 0 | |
Asset-backed senior securities and subordinated securities | Level 2 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 75,372 | 109,339 | |
Asset-backed senior securities and subordinated securities | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 16,515 | 21,090 | |
CLUB Certificate asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 50,139 | 89,706 | |
CLUB Certificate asset-backed securities | Level 1 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | 0 | |
CLUB Certificate asset-backed securities | Level 2 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | 0 | |
CLUB Certificate asset-backed securities | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 50,139 | 89,706 | |
Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 14,343 | ||
Corporate debt securities | Level 1 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | ||
Corporate debt securities | Level 2 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 14,343 | ||
Corporate debt securities | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | ||
Certificates of deposit | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 13,100 | ||
Certificates of deposit | Level 1 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | ||
Certificates of deposit | Level 2 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 13,100 | ||
Certificates of deposit | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | ||
Other securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 200 | 12,080 | |
Other securities | Level 1 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | 0 | |
Other securities | Level 2 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 200 | 12,080 | |
Other securities | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | $ 0 | 0 | |
Commercial paper | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 9,274 | ||
Commercial paper | Level 1 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | ||
Commercial paper | Level 2 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 9,274 | ||
Commercial paper | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | ||
U.S. agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 1,995 | ||
U.S. agency securities | Level 1 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 0 | ||
U.S. agency securities | Level 2 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 1,995 | ||
U.S. agency securities | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | $ 0 | ||
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Fair value inputs market servicing rate | 0.62% | |
Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Fair value inputs market servicing rate | 0.62% | 0.66% |
Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Fair value inputs market servicing rate | 0.62% | 0.66% |
Level 3 Inputs | Weighted Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Fair value inputs market servicing rate | 0.66% | |
Discount rates | Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 4.80% | 2.90% |
Discount rates | Level 3 Inputs | Minimum | Asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 2.20% | 3.40% |
Discount rates | Level 3 Inputs | Minimum | Loan Trailing Fee Liability | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 4.80% | 2.90% |
Discount rates | Level 3 Inputs | Minimum | Loans Invested in by Company | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.70% | 6.00% |
Discount rates | Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 16.40% | 14.80% |
Discount rates | Level 3 Inputs | Maximum | Asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 25.10% | 20.70% |
Discount rates | Level 3 Inputs | Maximum | Loan Trailing Fee Liability | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 16.40% | 14.80% |
Discount rates | Level 3 Inputs | Maximum | Loans Invested in by Company | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 16.20% | 11.50% |
Discount rates | Level 3 Inputs | Weighted Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 9.90% | 8.60% |
Discount rates | Level 3 Inputs | Weighted Average | Asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.40% | 8.80% |
Discount rates | Level 3 Inputs | Weighted Average | Loan Trailing Fee Liability | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 10.50% | 9.30% |
Discount rates | Level 3 Inputs | Weighted Average | Loans Invested in by Company | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 9.60% | 7.80% |
Net cumulative expected loss rates | Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 4.50% | 3.70% |
Net cumulative expected loss rates | Level 3 Inputs | Minimum | Asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 5.40% | 4.50% |
Net cumulative expected loss rates | Level 3 Inputs | Minimum | Loan Trailing Fee Liability | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 4.50% | 3.70% |
Net cumulative expected loss rates | Level 3 Inputs | Minimum | Loans Invested in by Company | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 5.00% | 3.60% |
Net cumulative expected loss rates | Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 26.30% | 36.10% |
Net cumulative expected loss rates | Level 3 Inputs | Maximum | Asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 28.90% | 37.90% |
Net cumulative expected loss rates | Level 3 Inputs | Maximum | Loan Trailing Fee Liability | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 26.30% | 36.00% |
Net cumulative expected loss rates | Level 3 Inputs | Maximum | Loans Invested in by Company | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 28.00% | 36.60% |
Net cumulative expected loss rates | Level 3 Inputs | Weighted Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 12.50% | 12.40% |
Net cumulative expected loss rates | Level 3 Inputs | Weighted Average | Asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 18.80% | 19.20% |
Net cumulative expected loss rates | Level 3 Inputs | Weighted Average | Loan Trailing Fee Liability | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 14.30% | 14.40% |
Net cumulative expected loss rates | Level 3 Inputs | Weighted Average | Loans Invested in by Company | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.90% | 10.90% |
Cumulative expected prepayment rates | Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 27.00% | 27.50% |
Cumulative expected prepayment rates | Level 3 Inputs | Minimum | Asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 6.30% | 17.30% |
Cumulative expected prepayment rates | Level 3 Inputs | Minimum | Loan Trailing Fee Liability | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 27.10% | 28.50% |
Cumulative expected prepayment rates | Level 3 Inputs | Minimum | Loans Invested in by Company | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 26.80% | 27.30% |
Cumulative expected prepayment rates | Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 38.90% | 41.80% |
Cumulative expected prepayment rates | Level 3 Inputs | Maximum | Asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 30.50% | 35.10% |
Cumulative expected prepayment rates | Level 3 Inputs | Maximum | Loan Trailing Fee Liability | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 39.00% | 41.70% |
Cumulative expected prepayment rates | Level 3 Inputs | Maximum | Loans Invested in by Company | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 41.00% | 41.00% |
Cumulative expected prepayment rates | Level 3 Inputs | Weighted Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 31.20% | 32.50% |
Cumulative expected prepayment rates | Level 3 Inputs | Weighted Average | Asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 24.80% | 29.40% |
Cumulative expected prepayment rates | Level 3 Inputs | Weighted Average | Loan Trailing Fee Liability | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 31.60% | 33.00% |
Cumulative expected prepayment rates | Level 3 Inputs | Weighted Average | Loans Invested in by Company | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 30.50% | 31.60% |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | Discount rates | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 7.60% | 6.00% |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | Discount rates | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 15.00% | 12.00% |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | Discount rates | Level 3 Inputs | Weighted Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 9.40% | 7.90% |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | Net cumulative expected loss rates | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 4.30% | 3.60% |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | Net cumulative expected loss rates | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 28.10% | 34.90% |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | Net cumulative expected loss rates | Level 3 Inputs | Weighted Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 11.20% | 11.90% |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | Cumulative expected prepayment rates | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 27.30% | 28.70% |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | Cumulative expected prepayment rates | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 35.70% | 38.60% |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | Cumulative expected prepayment rates | Level 3 Inputs | Weighted Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 30.40% | 31.70% |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Additional Information about Loans, Notes, Certificates and Secured Borrowings Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans Invested in by Company | |||
Loans | |||
Outstanding principal balance, beginning | $ 794,436 | $ 873,233 | |
Valuation adjustment, beginning | (28,388) | (30,629) | |
Fair value, beginning | 842,604 | ||
Outstanding principal balance, purchases of loans | 1,570,279 | 5,346,139 | |
Valuation adjustment, purchases of loans | (1,302) | (2,302) | |
Fair value, purchases of loans | 1,568,977 | 5,343,837 | |
Transfers (to) from loans held for investment and/or loans held for sale | 503 | 706 | |
Valuation adjustment, transfers from loans held for investment to loans held for sale | 0 | 0 | |
Outstanding principal balance, transfers from loans held for investment to loans held for sale | 503 | 706 | |
Outstanding principal balance, sales | (1,907,446) | (5,122,450) | |
Valuation adjustment, sales | 87,723 | 119,369 | |
Fair value, sales | (1,819,723) | (5,003,081) | |
Outstanding principal balance, principal payments | (237,123) | (273,580) | |
Valuation adjustment, principal payments | 0 | 0 | |
Fair value, principal payments | (237,123) | (273,580) | |
Outstanding principal balance, charge-offs | (31,661) | (29,612) | |
Valuation adjustment, charge-offs | 26,533 | 26,142 | |
Fair value, charge-offs | (5,128) | (3,470) | |
Outstanding principal balance, change in fair value recorded in earnings | 0 | 0 | |
Valuation adjustment, change in fair value recorded in earnings | (101,698) | (140,968) | $ (102,000) |
Fair value, change in fair value recorded in earnings | (101,698) | (140,968) | |
Outstanding principal balance, ending | 188,988 | 794,436 | 873,233 |
Valuation adjustment, ending | (17,132) | (28,388) | (30,629) |
Fair value, ending | 171,856 | 842,604 | |
Notes, Certificates and Secured Borrowings | |||
Notes, Certificates and Secured Borrowings | |||
Outstanding principal balance, beginning | 1,148,888 | 2,033,258 | |
Valuation adjustment, beginning | (67,422) | (127,383) | |
Fair value at beginning of period | 1,081,466 | 1,905,875 | |
Outstanding principal balance, purchases of loans | 0 | 0 | |
Valuation adjustment, purchases of loans | 0 | 0 | |
Fair value, purchases of loans | 0 | 0 | |
Outstanding principal balance, transfers from loans to loans held for sale | 0 | 0 | |
Valuation adjustment, transfers from loans to loans held for sale | 0 | 0 | |
Fair value, transfers from loans to loans held for sale | 0 | 0 | |
Outstanding principal balance, issuances of notes and certificates | 314,995 | 632,962 | |
Valuation adjustment, issuances of notes and certificates | 0 | 0 | |
Fair value, issuances of notes and certificates | 314,995 | 632,962 | |
Outstanding principal balance, principal payments | 0 | 0 | |
Valuation adjustment, principal payments | 0 | 0 | |
Fair value, principal payments | 0 | 0 | |
Outstanding principal balance, whole loan sales | (705,639) | (1,326,526) | |
Valuation adjustment, whole loan sales | 0 | 14 | |
Fair value, whole loan sales | (705,639) | (1,326,512) | |
Outstanding principal balance, charge-offs | (78,341) | (190,806) | |
Valuation adjustment, charge-offs | 37,161 | 135,785 | |
Fair value, charge-offs | (41,180) | (55,021) | |
Outstanding principal balance, change in fair value recorded in earnings | 0 | 0 | |
Valuation adjustment, change in fair value recorded in earnings | (12,868) | (75,838) | |
Fair value, change in fair value recorded in earnings | (12,868) | (75,838) | |
Outstanding principal balance, ending | 679,903 | 1,148,888 | 2,033,258 |
Valuation adjustment, ending | (43,129) | (67,422) | (127,383) |
Fair value at end of period | 636,774 | 1,081,466 | 1,905,875 |
Loans Held for Investment | |||
Loans | |||
Outstanding principal balance, beginning | 1,148,888 | 2,013,438 | |
Valuation adjustment, beginning | (69,573) | (130,187) | |
Fair value, beginning | 1,079,315 | 1,883,251 | |
Outstanding principal balance, purchases of loans | 314,995 | 632,962 | |
Valuation adjustment, purchases of loans | 0 | (21) | |
Fair value, purchases of loans | 314,995 | 632,941 | |
Transfers (to) from loans held for investment and/or loans held for sale | (17,916) | (123,036) | |
Valuation adjustment, transfers from loans held for investment to loans held for sale | 0 | 0 | |
Outstanding principal balance, transfers from loans held for investment to loans held for sale | (17,916) | (123,036) | |
Outstanding principal balance, issuances | 0 | 0 | |
Valuation adjustment, issuances | 0 | 0 | |
Fair value, issuances | 0 | 0 | |
Outstanding principal balance, sales | 0 | 0 | |
Valuation adjustment, sales | 0 | 0 | |
Fair value, sales | 0 | 0 | |
Outstanding principal balance, principal payments | (687,723) | (1,183,670) | |
Valuation adjustment, principal payments | 0 | 0 | |
Fair value, principal payments | (687,723) | (1,183,670) | |
Outstanding principal balance, charge-offs | (78,341) | (190,806) | |
Valuation adjustment, charge-offs | 39,641 | 138,857 | |
Fair value, charge-offs | (38,700) | (51,949) | |
Outstanding principal balance, change in fair value recorded in earnings | 0 | 0 | |
Valuation adjustment, change in fair value recorded in earnings | (13,285) | (78,222) | |
Fair value, change in fair value recorded in earnings | (13,285) | (78,222) | |
Outstanding principal balance, ending | 679,903 | 1,148,888 | 2,013,438 |
Valuation adjustment, ending | (43,217) | (69,573) | (130,187) |
Fair value, ending | 636,686 | 1,079,315 | 1,883,251 |
Loans Held for Investment | Loans Invested in by Company | |||
Loans | |||
Outstanding principal balance, beginning | 47,042 | 3,518 | |
Valuation adjustment, beginning | (3,349) | (935) | |
Fair value, beginning | 43,693 | 2,583 | |
Outstanding principal balance, purchases of loans | 1,435 | 2,993 | |
Valuation adjustment, purchases of loans | (1,296) | (2,303) | |
Fair value, purchases of loans | 139 | 690 | |
Transfers (to) from loans held for investment and/or loans held for sale | 41,934 | 49,996 | |
Valuation adjustment, transfers from loans held for investment to loans held for sale | 0 | (1,471) | |
Outstanding principal balance, transfers from loans held for investment to loans held for sale | 41,934 | 48,525 | |
Outstanding principal balance, sales | 0 | 0 | |
Valuation adjustment, sales | 0 | 0 | |
Fair value, sales | 0 | 0 | |
Outstanding principal balance, principal payments | (29,640) | (5,214) | |
Valuation adjustment, principal payments | 0 | 0 | |
Fair value, principal payments | (29,640) | (5,214) | |
Outstanding principal balance, charge-offs | (4,383) | (4,251) | |
Valuation adjustment, charge-offs | 906 | 2,169 | |
Fair value, charge-offs | (3,477) | (2,082) | |
Outstanding principal balance, change in fair value recorded in earnings | 0 | 0 | |
Valuation adjustment, change in fair value recorded in earnings | (2,695) | (809) | |
Fair value, change in fair value recorded in earnings | (2,695) | (809) | |
Outstanding principal balance, ending | 56,388 | 47,042 | 3,518 |
Valuation adjustment, ending | (6,434) | (3,349) | (935) |
Fair value, ending | 49,954 | 43,693 | 2,583 |
Loans Held for Sale | |||
Loans | |||
Outstanding principal balance, beginning | 0 | 0 | |
Valuation adjustment, beginning | 0 | 0 | |
Fair value, beginning | 0 | 0 | |
Outstanding principal balance, purchases of loans | 1,564,081 | 2,490,734 | |
Valuation adjustment, purchases of loans | (40,167) | (26,560) | |
Fair value, purchases of loans | 1,523,914 | 2,464,174 | |
Transfers (to) from loans held for investment and/or loans held for sale | 17,413 | 122,330 | |
Valuation adjustment, transfers from loans held for investment to loans held for sale | 0 | 0 | |
Outstanding principal balance, transfers from loans held for investment to loans held for sale | 17,413 | 122,330 | |
Outstanding principal balance, issuances | 0 | 0 | |
Valuation adjustment, issuances | 0 | 0 | |
Fair value, issuances | 0 | 0 | |
Outstanding principal balance, sales | (1,581,494) | (2,613,064) | |
Valuation adjustment, sales | 52,010 | 24,789 | |
Fair value, sales | (1,529,484) | (2,588,275) | |
Outstanding principal balance, principal payments | 0 | 0 | |
Valuation adjustment, principal payments | 0 | 0 | |
Fair value, principal payments | 0 | 0 | |
Outstanding principal balance, charge-offs | 0 | 0 | |
Valuation adjustment, charge-offs | 0 | 0 | |
Fair value, charge-offs | 0 | 0 | |
Outstanding principal balance, change in fair value recorded in earnings | 0 | 0 | |
Valuation adjustment, change in fair value recorded in earnings | (11,843) | 1,771 | |
Fair value, change in fair value recorded in earnings | (11,843) | 1,771 | |
Outstanding principal balance, ending | 0 | 0 | 0 |
Valuation adjustment, ending | 0 | 0 | 0 |
Fair value, ending | 0 | 0 | 0 |
Loans Held for Sale | Loans Invested in by Company | |||
Loans | |||
Outstanding principal balance, beginning | 747,394 | 869,715 | |
Valuation adjustment, beginning | (25,039) | (29,694) | |
Fair value, beginning | 722,355 | 840,021 | |
Outstanding principal balance, purchases of loans | 1,568,844 | 5,343,146 | |
Valuation adjustment, purchases of loans | (6) | 1 | |
Fair value, purchases of loans | 1,568,838 | 5,343,147 | |
Transfers (to) from loans held for investment and/or loans held for sale | (41,431) | (49,290) | |
Valuation adjustment, transfers from loans held for investment to loans held for sale | 0 | 1,471 | |
Outstanding principal balance, transfers from loans held for investment to loans held for sale | (41,431) | (47,819) | |
Outstanding principal balance, sales | (1,907,446) | (5,122,450) | |
Valuation adjustment, sales | 87,723 | 119,369 | |
Fair value, sales | (1,819,723) | (5,003,081) | |
Outstanding principal balance, principal payments | (207,483) | (268,366) | |
Valuation adjustment, principal payments | 0 | 0 | |
Fair value, principal payments | (207,483) | (268,366) | |
Outstanding principal balance, charge-offs | (27,278) | (25,361) | |
Valuation adjustment, charge-offs | 25,627 | 23,973 | |
Fair value, charge-offs | (1,651) | (1,388) | |
Outstanding principal balance, change in fair value recorded in earnings | 0 | 0 | |
Valuation adjustment, change in fair value recorded in earnings | (99,003) | (140,159) | |
Fair value, change in fair value recorded in earnings | (99,003) | (140,159) | |
Outstanding principal balance, ending | 132,600 | 747,394 | 869,715 |
Valuation adjustment, ending | (10,698) | (25,039) | (29,694) |
Fair value, ending | $ 121,902 | $ 722,355 | $ 840,021 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Sensitivity of Fair Value of Loans Invested in by Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | $ 142,226 | $ 270,927 | |
Other assets | [1] | 96,730 | 143,668 |
Loan servicing assets, at fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other assets | 56,347 | 89,680 | |
Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 66,654 | 110,796 | |
Fair Value, Measurements, Recurring | Level 3 Inputs | Servicing Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rates, impact of 100 basis point increase | (455) | (680) | |
Discount rates, impact of 200 basis point increase | (911) | (1,360) | |
Expected credit loss rates on underlying loans, 10% adverse change | (346) | (582) | |
Expected credit loss on underlying loans, 20% adverse change | (691) | (1,165) | |
Expected prepayment rates, 10% adverse change | (1,596) | (2,962) | |
Expected prepayment rates, 20% adverse change | (3,192) | (5,924) | |
Fair Value, Measurements, Recurring | Asset-backed Securities Related to Structured Program Transactions, Senior Securities | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 75,372 | 109,339 | |
Discount rates, impact of 100 basis point increase | (579) | (1,050) | |
Discount rates, impact of 200 basis point increase | (1,145) | (2,076) | |
Expected credit loss rates on underlying loans, 10% adverse change | 0 | 0 | |
Expected credit loss on underlying loans, 20% adverse change | 0 | 0 | |
Expected prepayment rates, 10% adverse change | 0 | 0 | |
Expected prepayment rates, 20% adverse change | 0 | 0 | |
Fair Value, Measurements, Recurring | Asset-backed Securities Related to Structured Program Transactions, Subordinated Residual Certificates | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 16,515 | 21,090 | |
Discount rates, impact of 100 basis point increase | (161) | (300) | |
Discount rates, impact of 200 basis point increase | (343) | (513) | |
Expected credit loss rates on underlying loans, 10% adverse change | (1,831) | (2,162) | |
Expected credit loss on underlying loans, 20% adverse change | (3,718) | (4,273) | |
Expected prepayment rates, 10% adverse change | (791) | (814) | |
Expected prepayment rates, 20% adverse change | (1,736) | (1,495) | |
Fair Value, Measurements, Recurring | Asset-backed Securities Related to Structured Program Transactions, CLUB Transactions | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale at fair value | 50,139 | 89,706 | |
Discount rates, impact of 100 basis point increase | (405) | (823) | |
Discount rates, impact of 200 basis point increase | (800) | (1,627) | |
Expected credit loss rates on underlying loans, 10% adverse change | (1,528) | (2,163) | |
Expected credit loss on underlying loans, 20% adverse change | (3,095) | (4,311) | |
Expected prepayment rates, 10% adverse change | (659) | (654) | |
Expected prepayment rates, 20% adverse change | $ (1,343) | $ (1,279) | |
Measurement Input, Expected Term | Fair Value, Measurements, Recurring | Asset-backed Securities Related to Structured Program Transactions, Senior Securities | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected weighted-average life (in years) | 1 year 1 month 6 days | ||
Measurement Input, Expected Term | Fair Value, Measurements, Recurring | Asset-backed Securities Related to Structured Program Transactions, Subordinated Residual Certificates | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected weighted-average life (in years) | 1 year 4 months 24 days | ||
Measurement Input, Expected Term | Fair Value, Measurements, Recurring | Asset-backed Securities Related to Structured Program Transactions, CLUB Transactions | Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected weighted-average life (in years) | 10 months 24 days | 1 year 1 month 6 days | |
Loans Invested in by Company | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of loans invested in by the Company | $ 171,856 | $ 766,048 | |
Discount rate, 100 basis point increase | (1,692) | (9,806) | |
Discount rate, 200 basis point increase | (3,355) | (19,410) | |
Expected credit loss rates on underlying loans, 10% adverse change | (1,739) | (9,558) | |
Expected credit loss rates on underlying loans, 20% adverse change | (3,514) | (19,136) | |
Expected prepayment rates, 10% adverse change | (454) | (2,429) | |
Expected prepayment rates, 20% adverse change | $ (924) | $ (4,740) | |
Loans Invested in by Company | Measurement Input, Expected Term | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected weighted-average life (in years) | 1 year 2 months 12 days | 1 year 6 months | |
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Assets | ||
Servicing assets, fair value, beginning balance | $ 89,680 | |
Servicing assets, fair value, ending balance | 56,347 | $ 89,680 |
Fair Value, Measurements, Recurring | ||
Servicing Assets | ||
Servicing assets, fair value, beginning balance | 89,680 | 64,006 |
Issuances | 33,990 | 79,692 |
Change in fair value, included in investor fees | (58,730) | (58,172) |
Other net changes included in deferred revenue | (8,593) | 4,154 |
Servicing assets, fair value, ending balance | 56,347 | 89,680 |
Asset-backed subordinated securities | ||
Asset-Backed Securities | ||
Fair value at beginning of period | 110,796 | 60,279 |
Additions | 27,578 | 118,721 |
Redemptions | (5,215) | (17,900) |
Transfers | (517) | 0 |
Cash received | (72,258) | (45,701) |
Change in unrealized gain (loss) | 2,578 | (992) |
Accrued interest | 7,075 | 0 |
Provision for credit loss expense | (3,383) | 0 |
Other-than-temporary impairment | 0 | (3,611) |
Fair value at end of period | $ 66,654 | $ 110,796 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured Using Different Market Servicing Rates and Different Prepayment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Change in servicing rate | 0.10% | |
Fair Value, Measurements, Recurring | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Weighted-average market servicing rate assumptions | 0.62% | 0.66% |
Servicing rate increase by 0.10%, servicing assets | $ (7,379) | $ (13,978) |
Servicing rate decrease by 0.10%, servicing assets | $ 7,379 | $ 13,979 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities - Trailing Fee Liability (Details) - Loan Trailing Fee Liability - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 11,099 | $ 10,010 |
Issuances | 2,978 | 7,815 |
Cash payment of Loan Trailing Fee | (7,402) | (7,908) |
Change in fair value, included in Origination and Servicing | 819 | 1,182 |
Fair value at end of period | $ 7,494 | $ 11,099 |
Fair Value of Assets and Lia_10
Fair Value of Assets and Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 1,007,115 | $ 2,205,970 |
Total liabilities | 801,852 | 1,133,175 |
Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 75,572 | 160,131 |
Total liabilities | 0 | 0 |
Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 931,543 | 2,045,839 |
Total liabilities | 801,852 | 1,133,175 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 524,963 | 243,779 |
Restricted cash | 103,522 | 243,343 |
Servicer reserve receivable | 22 | 73 |
Deposits | 892 | 953 |
Total assets | 629,399 | 488,148 |
Accrued expenses and other liabilities | 13,552 | 24,899 |
Accounts payable | 3,698 | 10,855 |
Payable to investors | 40,286 | 97,530 |
Credit facilities and securities sold under repurchase agreements | 104,989 | 587,453 |
Total liabilities | 162,525 | 720,737 |
Portion at Other than Fair Value Measurement | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Servicer reserve receivable | 0 | 0 |
Deposits | 0 | 0 |
Total assets | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Accounts payable | 0 | 0 |
Payable to investors | 0 | 0 |
Credit facilities and securities sold under repurchase agreements | 0 | 0 |
Total liabilities | 0 | 0 |
Portion at Other than Fair Value Measurement | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 524,963 | 243,779 |
Restricted cash | 103,522 | 243,343 |
Servicer reserve receivable | 22 | 73 |
Deposits | 892 | 953 |
Total assets | 629,399 | 488,148 |
Accrued expenses and other liabilities | 0 | 0 |
Accounts payable | 3,698 | 10,855 |
Payable to investors | 40,286 | 97,530 |
Credit facilities and securities sold under repurchase agreements | 65,121 | 77,143 |
Total liabilities | 109,105 | 185,528 |
Portion at Other than Fair Value Measurement | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Servicer reserve receivable | 0 | 0 |
Deposits | 0 | 0 |
Total assets | 0 | 0 |
Accrued expenses and other liabilities | 13,552 | 24,899 |
Accounts payable | 0 | 0 |
Payable to investors | 0 | 0 |
Credit facilities and securities sold under repurchase agreements | 39,868 | 510,310 |
Total liabilities | 53,420 | 535,209 |
Balance at Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 524,963 | 243,779 |
Restricted cash | 103,522 | 243,343 |
Servicer reserve receivable | 22 | 73 |
Deposits | 892 | 953 |
Total assets | 629,399 | 488,148 |
Accrued expenses and other liabilities | 13,552 | 24,899 |
Accounts payable | 3,698 | 10,855 |
Payable to investors | 40,286 | 97,530 |
Credit facilities and securities sold under repurchase agreements | 104,989 | 587,453 |
Total liabilities | $ 162,525 | $ 720,737 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Internally developed software | $ 101,953 | $ 117,510 |
Leasehold improvements | 35,140 | 39,315 |
Computer equipment | 27,030 | 26,669 |
Purchased software | 19,004 | 11,846 |
Furniture and fixtures | 8,203 | 9,406 |
Construction in progress | 2,761 | 4,937 |
Total property, equipment and software | 194,091 | 209,683 |
Accumulated depreciation and amortization | (97,450) | (95,313) |
Total property, equipment and software, net | 96,641 | 114,370 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Internally developed software | $ 13,900 | $ 21,300 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 54,029 | $ 59,152 | $ 54,764 |
General and Administrative Expense | |||
Property, Plant and Equipment [Line Items] | |||
Impairment | 5,700 | 3,900 | 3,800 |
Property, Equipment and Software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 45,200 | $ 51,600 | $ 47,000 |
Other Assets (Detail)
Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Assets [Abstract] | |||
Other assets | [1] | $ 96,730 | $ 143,668 |
Loan servicing assets, at fair value | |||
Other Assets [Abstract] | |||
Other assets | 56,347 | 89,680 | |
Prepaid expenses | |||
Other Assets [Abstract] | |||
Other assets | 16,455 | 14,862 | |
Accounts receivable | |||
Other Assets [Abstract] | |||
Other assets | 10,243 | 19,017 | |
Other investments | |||
Other Assets [Abstract] | |||
Other assets | 8,275 | 8,242 | |
Other | |||
Other Assets [Abstract] | |||
Other assets | 5,410 | 11,867 | |
Loan Servicing Rights | |||
Other Assets [Abstract] | |||
Principal balance of underlying loan servicing rights | $ 10,100,000 | $ 14,100,000 | |
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 11,427 | $ 14,549 |
Gross Carrying Value | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 39,500 | 39,500 |
Accumulated Amortization | (28,073) | (24,951) |
Net Carrying Value | $ 11,427 | $ 14,549 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 3.1 | $ 3.5 | $ 3.9 |
Gross Carrying Value | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, amortized period | 14 years |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Expected Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 2,746 | |
2022 | 2,370 | |
2023 | 1,994 | |
2024 | 1,618 | |
2025 | 1,241 | |
Thereafter | 1,458 | |
Net Carrying Value | $ 11,427 | $ 14,549 |
Intangible Assets - Schedule _3
Intangible Assets - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill impairment | $ 0 | $ 0 | $ 35,633 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |||
Accrued compensation | $ 28,805 | $ 30,484 | |
Contingent liabilities | 21,592 | 16,000 | |
Accrued expenses | 14,382 | 36,797 | |
Transaction fee refund reserve | 14,119 | 25,541 | |
Loan trailing fee liability, at fair value | 7,494 | 11,099 | |
Deferred revenue | 4,923 | 13,688 | |
Other | 10,142 | 9,027 | |
Total accrued expenses and other liabilities | [1] | $ 101,457 | $ 142,636 |
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Comprehensive income/loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Change in net unrealized gain (loss) on securities available for sale, before tax | $ 2,044 | $ (526) | $ 252 |
Change in net unrealized loss on securities available for sale, tax effect | (5) | 216 | 83 |
Change in net unrealized loss on securities available for sale, net of tax | 2,049 | (742) | 169 |
Other comprehensive Income (loss), before tax | 2,044 | (526) | 252 |
Other comprehensive income (loss), tax effect | (5) | 216 | 83 |
Other comprehensive income (loss), net of tax | $ 2,049 | $ (742) | $ 169 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Accumulated other comprehensive income/loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning | $ (565) | $ 157 | |
Change in net unrealized gain (loss) on securities available for sale | 2,049 | (742) | $ 169 |
Less: Other comprehensive income (loss) attributable to noncontrolling interests | 0 | (20) | 7 |
Change in net unrealized gain (loss) on securities available for sale | 2,049 | (742) | 169 |
Ending | $ 1,484 | $ (565) | $ 157 |
Debt (Detail)
Debt (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | ||||
Payable to Structured Program note and certificate holders | [1] | $ 152,808,000 | $ 40,610,000 | |
Assets Sold under Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Securities pledged as collateral | 133,500,000 | 174,800,000 | ||
Securities Sold under Repurchase Agreements | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding under Repurchase Agreements | 105,000,000 | 140,200,000 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Debt Instrument [Line Items] | ||||
Payable to Structured Program note and certificate holders | $ 152,808,000 | 40,610,000 | ||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Weighted-average estimated life of repurchase agreements | 10 months 24 days | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Weighted-average estimated life of repurchase agreements | 1 year 4 months 24 days | |||
Loans Held for Investment | Variable Interest Entity, Primary Beneficiary | Loans Related to Consolidation of Securitization Trust | Payable to Securitization Note and Certificate Holders | ||||
Debt Instrument [Line Items] | ||||
Payable to Structured Program note and certificate holders | $ 152,800,000 | 40,600,000 | ||
Personal Loan and Auto Loan Warehouse Credit Facilities | Loans Held for Sale | ||||
Debt Instrument [Line Items] | ||||
Loans pledged as collateral | $ 551,500,000 | |||
Securities Sold Under Repurchase Agreements | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 3.05% | 3.41% | ||
Securities Sold Under Repurchase Agreements | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 4.00% | 4.40% | ||
Payables to Securitization Holders | ||||
Debt Instrument [Line Items] | ||||
Restricted cash pledged as collateral | $ 13,500,000 | $ 2,900,000 | ||
Payables to Securitization Holders | Loans Held for Investment | Variable Interest Entity, Primary Beneficiary | Loans Related to Consolidation of Securitization Trust | ||||
Debt Instrument [Line Items] | ||||
Loans pledged as collateral | $ 148,300,000 | |||
Payables to Securitization Holders | Loans Held for Investment and Loans Held for Sale | ||||
Debt Instrument [Line Items] | ||||
Loans pledged as collateral | 40,300,000 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | 60,000,000 | |||
Current borrowing capacity | $ 120,000,000 | |||
Revolving Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee | 0.25% | |||
Revolving Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee | 0.375% | |||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 4.46% | |||
Revolving Credit Facility | Personal Loan and Auto Loan Warehouse Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal | 387,300,000 | |||
Restricted cash pledged as collateral | $ 25,100,000 | |||
Revolving Credit Facility | Personal Loan and Auto Loan Warehouse Credit Facilities | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 3.76% | |||
Revolving Credit Facility | Personal Loan and Auto Loan Warehouse Credit Facilities | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 4.42% | |||
Revolving Credit Facility | Personal Loan Warehouse Credit Facilities | Minimum | ||||
Debt Instrument [Line Items] | ||||
Monthly unused commitment fee (percent) | 0.375% | |||
Revolving Credit Facility | Personal Loan Warehouse Credit Facilities | Maximum | ||||
Debt Instrument [Line Items] | ||||
Monthly unused commitment fee (percent) | 1.25% | |||
[1] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Secured Borrowings (Details)
Secured Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Loans Held for Investment | Secured Borrowings | ||
Debt Instrument [Line Items] | ||
Loans pledged as collateral | $ 0.8 | $ 18 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 29, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 20, 2020 | |
Class of Stock [Line Items] | ||||||
Preferred stock, authorized (shares) | 10,000,000 | |||||
Preferred stock, par value ($ per share) | $ 0.01 | |||||
Permissible transfer, maximum receipt of any class of voting securities (percent) | 2.00% | |||||
Permissible transfer, maximum control of transferee of Company voting securities, prior to transfer (percent) | 50.00% | |||||
Shareholder Protection Agreement threshold of equity interest in Company that triggers dilution (percent) | 25.00% | |||||
Shareholder Protection Agreement threshold of ownership in any class of the Company's voting securities triggering dilution (percent) | 10.00% | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Conversion of stock, shares of common stock converted and retired (in shares) | 19,562,881 | 19,562,881 | ||||
Deemed dividend | $ 50,204,000 | $ 0 | $ 0 | |||
Retirement of treasury stock (in shares) | 467,049 | |||||
Retirement of treasury stock | $ 19,600,000 | 4,000 | ||||
Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Deemed dividend | $ 50,200,000 | (50,204,000) | ||||
Other deemed dividends | $ 0 | |||||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, authorized (shares) | 1,200,000 | |||||
Preferred stock, par value ($ per share) | $ 0.01 | |||||
Preferred stock, outstanding (shares) | 43,000 | |||||
Convertible preferred stock, issued upon conversion (shares) | 100 | |||||
Ownership maximum per holder after conversion of preferred shares (percent) | 9.90% | |||||
Preferred stock liquidation preference ($ per share) | $ 0.01 | |||||
Conversion of stock, shares issued (in shares) | 195,628 | |||||
Series B Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, authorized (shares) | 600,000 | |||||
Preferred stock, outstanding (shares) | 0 | |||||
Preferred stock liquidation preference ($ per share) | $ 0.001 | |||||
Minimum preferential quarterly dividend ($ per share) | $ 0.001 | |||||
Preferred stock, issued (shares) | 0 |
Employee Incentive Plans - Comm
Employee Incentive Plans - Common Stock Reserved for Future Issuance (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total reserved for future issuance (in shares) | 31,318,320 | 28,308,129 |
RSU, PBRSU and Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Available for grant (in shares) | 12,552,761 | 12,861,058 |
Unvested RSUs, PBRSUs and stock options outstanding (in shares) | 14,631,526 | 12,323,868 |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Available for grant (in shares) | 4,134,033 | 3,123,203 |
Employee Incentive Plans - Tota
Employee Incentive Plans - Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 61,533 | $ 73,639 | $ 75,087 |
RSUs and PBRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 60,745 | 70,772 | 66,005 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 788 | 2,383 | 7,387 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0 | $ 484 | $ 1,695 |
Employee Incentive Plans - Stoc
Employee Incentive Plans - Stock-Based Compensation Expense Recorded in Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 61,533 | $ 73,639 | $ 75,087 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 4,104 | 6,095 | 7,362 |
Origination and servicing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2,689 | 3,155 | 4,322 |
Engineering and product development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 13,411 | 19,860 | 20,478 |
Other general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 41,329 | $ 44,529 | $ 42,925 |
Employee Incentive Plans - Addi
Employee Incentive Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 61,533,000 | $ 73,639,000 | $ 75,087,000 |
Total intrinsic value of options exercised | 1,800,000 | 5,900,000 | 1,900,000 |
Total fair value of stock options vested | $ 1,000,000 | $ 2,800,000 | $ 9,800,000 |
Grants (shares) | 0 | 0 | 0 |
Unrecognized compensation cost | $ 0 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 11,247,846 | ||
Fair value | $ 104,300,000 | ||
Unrecognized compensation cost | $ 120,000,000 | ||
Unrecognized compensation cost expected period for recognition | 2 years 9 months 18 days | ||
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 1,424,438 | ||
Unrecognized compensation cost | $ 3,800,000 | ||
Unrecognized compensation cost expected period for recognition | 2 years 1 month 6 days | ||
Stock-based compensation expense | $ 2,800,000 | $ 3,900,000 | $ 2,800,000 |
Developing software | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, capitalized amount | $ 5,100,000 | $ 6,300,000 | $ 9,100,000 |
Employee Incentive Plans - RSUs
Employee Incentive Plans - RSUs and PBRSUs (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
RSUs | |
Number of Units | |
Unvested (shares) | shares | 9,597,404 |
Granted (shares) | shares | 11,247,846 |
Vested (shares) | shares | (4,139,425) |
Forfeited/expired (shares) | shares | (5,310,713) |
Unvested (shares) | shares | 11,395,112 |
Weighted- Average Grant Date Fair Value | |
Unvested ($ per share) | $ / shares | $ 16.78 |
Granted ($ per share) | $ / shares | 9.27 |
Vested ($ per share) | $ / shares | 15.66 |
Forfeited/expired ($ per share) | $ / shares | 13.61 |
Unvested ($ per share) | $ / shares | $ 11.26 |
Performance-based RSUs | |
Number of Units | |
Unvested (shares) | shares | 471,589 |
Granted (shares) | shares | 1,424,438 |
Vested (shares) | shares | (181,956) |
Forfeited/expired (shares) | shares | (272,760) |
Unvested (shares) | shares | 1,441,311 |
Weighted- Average Grant Date Fair Value | |
Unvested ($ per share) | $ / shares | $ 16.94 |
Granted ($ per share) | $ / shares | 4.67 |
Vested ($ per share) | $ / shares | 17.34 |
Forfeited/expired ($ per share) | $ / shares | 13.85 |
Unvested ($ per share) | $ / shares | $ 5.31 |
Employee Incentive Plans - Sche
Employee Incentive Plans - Schedule of Options Activity (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Stock price ($ per share) | $ 10.56 |
Number of Options | |
Outstanding (shares) | shares | 2,254,888 |
Exercised (shares) | shares | (150,473) |
Forfeited/Expired (shares) | shares | (309,299) |
Outstanding (shares) | shares | 1,795,116 |
Exercisable (shares) | shares | 1,795,116 |
Weighted- Average Exercise Price Per Share | |
Outstanding ($ per share) | $ 29.27 |
Exercised ($ per share) | 0.75 |
Forfeited/Expired ($ per share) | 38.92 |
Outstanding ($ per share) | 29.99 |
Exercisable ($ per share) | $ 29.99 |
Weighted-Average Remaining Contractual Life (in years) | |
Outstanding at December 31, 2020 | 3 years 7 months 28 days |
Exercisable at December 31, 2020 | 3 years 7 months 28 days |
Intrinsic value, Outstanding at December 31, 2020 | $ | $ 2,882 |
Intrinsic value, Exercisable at December 31, 2020 | $ | $ 2,882 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Tax Credit Carryforward [Line Items] | |||
Loss before income tax expense (benefit) less income (loss) attributable to noncontrolling interests | $ (187,600) | $ (30,900) | $ (128,300) |
Valuation allowance | 211,228 | $ 169,526 | |
Federal | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforward | 551,500 | ||
Federal | Research and Development | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards | 17,300 | ||
State and Local Jurisdiction | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforward | 642,200 | ||
State and Local Jurisdiction | Research and Development | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards | 18,600 | ||
State and Local Jurisdiction | Other State Tax Credit Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards | $ 2,200 |
Income Taxes - Components of ta
Income Taxes - Components of tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ (1) | $ (141) | $ (57) |
State | (78) | (60) | 100 |
Total current tax expense (benefit) | (79) | (201) | 43 |
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Total deferred tax expense (benefit) | 0 | 0 | 0 |
Income tax expense (benefit) | $ (79) | $ (201) | $ 43 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount | |||
Tax at federal statutory rate | $ (39,399) | $ (6,499) | $ (26,936) |
State tax, net of federal tax benefit | (81) | (60) | 100 |
Stock-based compensation expense | 8,044 | 4,773 | 6,559 |
Research and development tax credits | (994) | (2,336) | (7,839) |
Change in valuation allowance | 29,728 | (802) | 19,140 |
Change in unrecognized tax benefit | 497 | 1,168 | 3,920 |
Non-deductible expenses | 2,278 | 3,250 | 5,143 |
Other | (152) | 305 | (44) |
Income tax expense (benefit) | $ (79) | $ (201) | $ 43 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 163,381 | $ 118,090 |
Stock-based compensation | 10,218 | 11,480 |
Reserves and accruals | 15,652 | 23,008 |
Operating lease liabilities | 28,032 | 33,824 |
Goodwill | 17,375 | 19,818 |
Intangible assets | 3,151 | 3,074 |
Tax credit carryforwards | 18,215 | 16,679 |
Other | 868 | 498 |
Total deferred tax assets | 256,892 | 226,471 |
Valuation allowance | (211,228) | (169,526) |
Deferred tax assets – net of valuation allowance | 45,664 | 56,945 |
Deferred tax liabilities: | ||
Internally developed software | (16,956) | (20,225) |
Servicing fees | (2,780) | (4,389) |
Operating lease assets | (22,048) | (28,224) |
Change in tax method | (1,769) | (3,988) |
Other | (2,111) | (119) |
Total deferred tax liabilities | (45,664) | (56,945) |
Deferred tax asset (liability) – net | $ 0 | $ 0 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 15,998 | $ 13,377 | $ 7,784 |
Gross increase for tax positions related to prior years | 0 | 0 | 2,744 |
Gross increase for tax positions related to the current year | 1,628 | 2,621 | 2,849 |
Ending balance | $ 17,626 | $ 15,998 | $ 13,377 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2020USD ($)lease_termination_option | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Lease renewal term | 15 years | ||
Security deposit | $ 0.8 | ||
Letters of credit as security deposit | 5.5 | ||
Number of operating lease termination options exercised | lease_termination_option | 1 | ||
Decrease in operating lease liability | $ 6.1 | ||
Decrease in operating lease, right-of-use asset | $ 5.3 | ||
Operating lease, impairment loss | $ 3.6 | $ 0 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 1 year | ||
Sublease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 8 years | ||
Sublease term | 2 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease assets | $ 74,037 | $ 93,485 |
Operating lease liabilities | $ 94,538 | $ 112,344 |
Leases - Net Lease Costs (Detai
Leases - Net Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Net lease costs | $ (11,200) | $ (14,865) | $ (16,786) |
Variable lease costs | 1,500 | 1,600 | 600 |
Other general and administrative | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | (17,346) | (19,502) | (17,183) |
Other revenue | |||
Lessee, Lease, Description [Line Items] | |||
Sublease revenue | $ 6,146 | $ 4,637 | $ 397 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Leased assets obtained in exchange for new and amended operating lease liabilities | $ 84 | $ 15,277 |
Leases - Future Operating Lease
Leases - Future Operating Lease Payments and Sublease Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 | $ 19,271 | |
2022 | 14,134 | |
2023 | 10,761 | |
2024 | 11,072 | |
2025 | 11,393 | |
Thereafter | 56,990 | |
Total lease payments | 123,621 | |
Discount effect | 29,083 | |
Operating lease liabilities | $ 94,538 | $ 112,344 |
Operating lease, not yet commenced, lease term | 8 years 3 months | |
Operating lease, not yet commenced, undiscounted future rent | $ 8,600 | |
Lessee, Operating Sublease, Description [Abstract] | ||
2021 | (6,767) | |
2022 | (2,918) | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total lease payments | (9,685) | |
Operating Lease Payments, Net [Abstract] | ||
2021 | 12,504 | |
2022 | 11,216 | |
2023 | 10,761 | |
2024 | 11,072 | |
2025 | 11,393 | |
Thereafter | 56,990 | |
Lessee, Operating Lease, Liability, Payments, Net of Sublease Income, Due | $ 113,936 |
Leases - Weighted-average Lease
Leases - Weighted-average Lease Term and Discount Rate (Details) | Dec. 31, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 8 years 11 months 15 days |
Weighted-average discount rate | 5.76% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2020USD ($)d | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2021USD ($) | |
Commitments and Contingencies [Line Items] | ||||
Number of business days | d | 2 | |||
Amount committed to purchase under the agreement | $ 13,800,000 | $ 91,300,000 | ||
Repurchased obligations | 3,300,000 | 5,500,000 | $ 4,000,000 | |
Prescreened offer purchase commitment | 1,100,000 | |||
Deposits to secure loans | 9,000,000 | 9,000,000 | ||
Investor agreement - purchases | 36,100,000 | |||
Investor loan purchase agreement, fair value | 4,500,000 | 45,700,000 | ||
Accrued contingent liabilities | 21,592,000 | $ 16,000,000 | ||
Acquisition-related Agreements | ||||
Commitments and Contingencies [Line Items] | ||||
Contingent consideration liability | $ 3,000,000 | |||
Subsequent Event | ||||
Commitments and Contingencies [Line Items] | ||||
Unfunded loan commitments | $ 100,000 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Details) - USD ($) | Apr. 21, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 17,789,000 | ||
2020 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring, number of positions eliminated, percent | 30.00% | ||
2020 Restructuring Plan | Accrued Expenses and Other Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 0 | ||
2020 Restructuring Plan | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 8,000,000 | $ 0 | |
2020 Restructuring Plan | Terminated Facility Lease and Impaired Internal Software Development Projects | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 5,600,000 | ||
2020 Restructuring Plan | Impairment of Internally Developed Software | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 4,200,000 |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 17,789 |
Sales and marketing | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 1,271 |
Origination and servicing | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 793 |
Engineering and product development | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | 7,245 |
Other general and administrative | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 8,480 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 20, 2020 | Feb. 29, 2020 | Mar. 31, 2020 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||||
Preferred stock, par value ($ per share) | $ 0.01 | |||
Series A Preferred Stock | ||||
Related Party Transaction [Line Items] | ||||
Conversion of stock, shares issued (in shares) | 195,628 | |||
Preferred stock, par value ($ per share) | $ 0.01 | |||
Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Conversion of stock, shares of common stock converted and retired (in shares) | 19,562,881 | 19,562,881 | ||
Majority Shareholder | Series A Preferred Stock | ||||
Related Party Transaction [Line Items] | ||||
Conversion of stock, shares issued (in shares) | 195,628 | |||
Majority Shareholder | Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Conversion of stock, shares of common stock converted and retired (in shares) | 19,562,881 | |||
Other Assets | ||||
Related Party Transaction [Line Items] | ||||
Investment | $ 7.8 | |||
Ownership (percent) | 22.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Radius Bancorp, Inc. Merger - Subsequent Event $ in Millions | Feb. 01, 2021USD ($)shares |
Subsequent Event [Line Items] | |
Cash paid | $ 145 |
Stocks issued in acquisition | $ 40.8 |
Stocks issued in acquisition (in shares) | shares | 3,761,114 |