Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 $0.01 per share | |
Trading Symbol | LC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 97,228,126 | |
Entity Central Index Key | 0001409970 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |||
Assets | |||||
Cash and due from banks | $ 34,261 | [1] | $ 5,197 | ||
Interest-bearing deposits in banks | 797,539 | [1] | 519,766 | ||
Total cash and cash equivalents | 831,800 | [1] | 524,963 | ||
Restricted cash | [1],[2] | 139,080 | 103,522 | ||
Securities available for sale at fair value (includes $273,331 and $159,164 at amortized cost, respectively) | [1] | 274,419 | 142,226 | ||
Loans held for sale at fair value | 166,623 | 121,902 | |||
Loans and leases held for investment | [1] | 2,115,432 | 0 | ||
Allowance for loan and lease losses | [1] | (36,132) | 0 | ||
Loans and leases held for investment, net | [1] | 2,079,300 | 0 | ||
Retail and certificate loans held for investment at fair value | 507,157 | 636,686 | [1],[2] | ||
Other loans held for investment at fair value | [1],[2] | 42,485 | 49,954 | ||
Property, equipment and software, net | [1] | 95,313 | 96,641 | ||
Goodwill | [1] | 75,717 | 0 | ||
Other assets | [1],[2] | 279,195 | 187,399 | ||
Total assets | [1] | 4,491,089 | 1,863,293 | ||
Deposits [Abstract] | |||||
Interest-bearing | [1] | 2,229,827 | 0 | ||
Noninterest-bearing | [1] | 143,610 | 0 | ||
Total deposits | [1] | 2,373,437 | 0 | ||
Short-term borrowings | [1] | 90,091 | 104,989 | ||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | [1] | 370,086 | 0 | ||
Retail notes, certificates and secured borrowings at fair value | 507,203 | 636,774 | [1],[2] | ||
Payable on Structured Program borrowings | 133,499 | 152,808 | [1],[2] | ||
Other long-term debt | [1] | 18,572 | 0 | ||
Other liabilities | [1],[2] | 265,066 | 244,551 | ||
Total liabilities | [1] | 3,757,954 | 1,139,122 | ||
Equity | |||||
Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 and 43,000 shares issued and outstanding, respectively | [1] | 0 | 0 | ||
Common stock, $0.01 par value; 180,000,000 shares authorized; 97,228,126 and 88,149,510 shares issued and outstanding, respectively | [1] | 972 | 881 | ||
Additional paid-in capital | [1] | 1,563,865 | 1,508,020 | ||
Accumulated deficit | [1] | (833,298) | (786,214) | ||
Treasury stock, at cost; 4,251 and 0 shares, respectively | (92) | 0 | |||
Accumulated other comprehensive income | [1] | 1,688 | 1,484 | ||
Total equity | [1] | 733,135 | 724,171 | ||
Total liabilities and equity | [1] | $ 4,491,089 | $ 1,863,293 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||
[2] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |||
Cash and due from banks | $ 34,261 | [1] | $ 5,197 | ||
Loans held for sale at fair value | 166,623 | 121,902 | |||
Retail and certificate loans held for investment at fair value | 507,157 | 636,686 | [1],[2] | ||
Other loans held for investment at fair value | 0 | ||||
Other assets | [1],[2] | 279,195 | 187,399 | ||
Retail notes, certificates and secured borrowings at fair value | 507,203 | 636,774 | [1],[2] | ||
Payable on Structured Program borrowings | 133,499 | 152,808 | [1],[2] | ||
Other liabilities | [1],[2] | 265,066 | 244,551 | ||
Total liabilities | [1] | 3,757,954 | 1,139,122 | ||
Securities available for sale at amortized cost | $ 273,331 | $ 159,164 | |||
Preferred stock, outstanding (shares) | 0 | 43,000 | |||
Common stock, par value ($ per share) | $ 0.01 | ||||
Common stock, authorized (shares) | 180,000,000 | ||||
Common stock, shares issued | 97,228,126 | 88,149,510 | |||
Common stock, shares outstanding | 97,228,126 | 88,149,510 | |||
Treasury stock, shares | 4,251 | 0 | |||
Restricted cash | [1],[2] | $ 139,080 | $ 103,522 | ||
Consolidated VIEs | |||||
Cash and due from banks | 17,536 | ||||
Loans held for sale at fair value | 83,926 | 98,190 | |||
Retail and certificate loans held for investment at fair value | 36,277 | 52,620 | |||
Other loans held for investment at fair value | 42,261 | 50,102 | |||
Other assets | 936 | 1,270 | |||
Total assets | 180,936 | 218,165 | |||
Retail notes, certificates and secured borrowings at fair value | 36,277 | 52,620 | |||
Payable on Structured Program borrowings | 133,499 | 152,808 | |||
Other liabilities | 522 | 729 | |||
Total liabilities | 170,298 | 206,157 | |||
Restricted cash | $ 17,536 | $ 15,983 | |||
Series A Preferred Stock | |||||
Preferred stock, par value ($ per share) | $ 0.01 | ||||
Preferred stock, authorized (shares) | 1,200,000 | ||||
Preferred stock, issued (shares) | 0 | 43,000 | |||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||
[2] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | ||||
Non-interest income | |||||
Marketplace revenue | $ 81,727 | $ 102,477 | [1] | ||
Other non-interest income | 5,607 | [1] | 4,511 | ||
Total non-interest income | 87,334 | 106,988 | |||
Interest income | |||||
Interest on loans held for sale | [1] | 5,157 | 27,376 | ||
Interest and fees on loans and leases held for investment | [1] | 15,301 | 0 | ||
Interest on retail and certificate loans held for investment at fair value | 20,262 | 35,376 | |||
Interest on other loans held for investment at fair value | 1,479 | 1,999 | |||
Interest on securities available for sale | [1] | 2,235 | 3,779 | ||
Other interest income | [1] | 156 | 881 | ||
Total interest income | 44,590 | 69,411 | [1] | ||
Interest Expense | |||||
Interest on deposits | [1] | 1,014 | 0 | ||
Interest on short-term borrowings | [1] | 1,264 | 7,398 | ||
Interest on retail notes, certificates and secured borrowings | [1] | 20,262 | 35,376 | ||
Interest on Structured Program borrowings | [1] | 3,208 | 2,299 | ||
Interest on other long-term debt | [1] | 336 | 140 | ||
Total interest expense | [1] | 26,084 | 45,213 | ||
Net interest income | [1] | 18,506 | 24,198 | ||
Total net revenue | [1] | 105,840 | 131,186 | ||
Provision for credit losses | 21,493 | 10,980 | [1] | ||
Non-interest expense | |||||
Compensation and benefits | 64,420 | [1] | 75,545 | ||
Marketing | 19,545 | [1] | 39,081 | ||
Equipment and software | 7,893 | [1] | 6,490 | ||
Occupancy | 6,900 | [1] | 6,813 | ||
Depreciation and amortization | 11,766 | [1] | 12,873 | ||
Professional services | 11,603 | [1] | 14,141 | ||
Other non-interest expense | 12,125 | [1] | 13,031 | ||
Total non-interest expense | 134,252 | [1] | 167,974 | ||
Loss before income tax expense | (49,905) | (47,768) | |||
Income tax expense (benefit) | (2,821) | 319 | |||
Consolidated net loss | $ (47,084) | $ (48,087) | |||
Common Stock | |||||
Non-interest expense | |||||
Net income (loss) per share – Basic and Diluted ($ per share) | [2] | $ (0.49) | $ (1.10) | ||
Weighted-average common shares - Basic and Diluted (shares) | [2] | 92,666,169 | 86,505,560 | ||
Preferred Stock | |||||
Non-interest expense | |||||
Net income (loss) per share – Basic and Diluted ($ per share) | [2] | $ (0.49) | $ 18.36 | ||
Weighted-average common shares - Basic and Diluted (shares) | [2] | 2,648,758 | 2,579,710 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||
[2] | See “ Notes to Condensed Consolidated Financial Statements – Note 4. Net Income (Loss) Per Share ” for additional information. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Consolidated net loss | $ (47,084) | $ (48,087) |
Other comprehensive income (loss), before tax: | ||
Net unrealized gain (loss) on securities available for sale | 204 | (20,681) |
Other comprehensive income (loss), before tax | 204 | (20,681) |
Income tax effect | 0 | (319) |
Other comprehensive income (loss), net of tax | 204 | (20,362) |
Total comprehensive loss | $ (46,880) | $ (68,449) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | ||
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 88,757,406 | 461,391 | ||||||
Beginning balance at Dec. 31, 2019 | $ 900,187 | $ 0 | $ 892 | $ 1,467,882 | $ (19,550) | $ (565) | $ (548,472) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation | 19,699 | 19,699 | |||||||
Net issuances under equity incentive plans, net of tax (in shares) | [1] | 674,689 | 5,658 | ||||||
Net issuances under equity incentive plans, net of tax | [1] | (4,687) | $ 7 | (4,623) | $ (71) | ||||
Net issuances of stock related to acquisition | 0 | ||||||||
Preferred stock converted into common stock (in shares) | [2] | 195,628 | (19,562,881) | ||||||
Preferred stock converted into common stock | [2] | (50,204) | $ 2 | $ (196) | 194 | (50,204) | |||
Retirement of treasury stock | $ (4) | (19,617) | $ 19,621 | ||||||
Retirement of treasury stock (in shares) | (467,049) | ||||||||
Net unrealized gain on securities available for sale, net of tax | (20,362) | (20,362) | |||||||
Consolidated net loss | (48,087) | (48,087) | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 195,628 | 69,869,214 | 0 | ||||||
Ending balance at Mar. 31, 2020 | 796,546 | $ 2 | $ 699 | 1,463,535 | $ 0 | (20,927) | (646,763) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Payment of deemed dividend due to beneficial conversion feature | 50,200 | ||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 43,000 | 88,149,510 | 0 | ||||||
Beginning balance at Dec. 31, 2020 | 724,171 | [3] | $ 0 | $ 881 | 1,508,020 | $ 0 | 1,484 | (786,214) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation | 15,765 | 15,765 | |||||||
Net issuances under equity incentive plans, net of tax (in shares) | [1] | 1,017,502 | 4,251 | ||||||
Net issuances under equity incentive plans, net of tax | [1] | (1,383) | $ 10 | (1,301) | $ (92) | ||||
Net issuances of stock related to acquisition (in shares) | [4] | 0 | 3,761,114 | ||||||
Net issuances of stock related to acquisition | [4] | 41,462 | $ 0 | $ 38 | 41,424 | ||||
Preferred stock converted into common stock (in shares) | (43,000) | 4,300,000 | |||||||
Preferred stock converted into common stock | $ 43 | (43) | $ 0 | ||||||
Retirement of treasury stock (in shares) | 0 | ||||||||
Net unrealized gain on securities available for sale, net of tax | 204 | 204 | |||||||
Consolidated net loss | (47,084) | (47,084) | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 0 | 97,228,126 | 4,251 | ||||||
Ending balance at Mar. 31, 2021 | $ 733,135 | [3] | $ 0 | $ 972 | $ 1,563,865 | $ (92) | $ 1,688 | $ (833,298) | |
[1] | 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. | ||||||||
[2] | Includes a payment of $50.2 million that was recorded as a deemed dividend within accumulated deficit related to the beneficial conversion feature of the Series A Preferred Stock issued on March 20, 2020, which would convert into common stock upon a sale by the preferred stockholder to a third party. | ||||||||
[3] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||||||
[4] | Stock issued as part of the consideration paid related to the acquisition of Radius. See “ Note 2. Business Acquisition. ” |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Cash Flows from Operating Activities: (1) | ||||
Consolidated net loss | $ (47,084) | $ (48,087) | ||
Adjustments to reconcile consolidated net loss to net cash used for operating activities: | ||||
Net fair value adjustments | 5,321 | 89,786 | ||
Provision for credit losses | 21,493 | 10,980 | [1] | |
Change in fair value of loan servicing assets | 11,837 | 9,608 | ||
Stock-based compensation, net | 14,801 | 18,129 | ||
Depreciation, amortization, and accretion | 11,450 | 13,730 | ||
Gain on sales of loans | (8,323) | (14,261) | ||
Other, net | 2,548 | 1,455 | ||
Net change to loans held for sale | (42,786) | (191,496) | ||
Net change in operating assets and liabilities: | ||||
Other assets | (10,290) | (4,918) | ||
Other liabilities | (10,333) | (101,373) | ||
Net cash used for operating activities | (51,366) | (216,447) | ||
Cash Flows from Investing Activities: | ||||
Acquisition of company | (145,344) | 0 | ||
Cash received from acquisition | 668,236 | 0 | ||
Net increase in loans and leases | (502,387) | (101,852) | ||
Net decrease in retail and certificate loans | 138,288 | 228,057 | ||
Purchases of securities available for sale | (9,911) | (34,909) | ||
Sale of asset-backed securities | 106,192 | 2,396 | ||
Proceeds from maturities and paydowns of securities available for sale | 34,239 | 61,038 | ||
Purchases of property, equipment and software, net | (6,365) | (11,435) | ||
Other investing activities | 4,960 | 100 | ||
Net cash provided by investing activities | 287,908 | 143,395 | ||
Cash Flows from Financing Activities: | ||||
Net change in demand deposits and savings accounts | 343,787 | 0 | ||
Principal payments on advances from PPPLF | (50,876) | 0 | ||
Proceeds from issuance of retail notes and certificates | 0 | 104,620 | ||
Net decrease in retail notes and certificates | (138,376) | (229,002) | ||
Principal payments on Structured Program borrowings | (22,391) | (6,911) | ||
Proceeds from issuance of notes and certificates from Structured Program transactions | 0 | 186,190 | ||
Proceeds from short-term borrowings | 0 | 979,539 | ||
Principal payments on short-term borrowings | (24,908) | (946,038) | ||
Deemed dividend paid to preferred stockholder | 0 | (50,204) | ||
Other financing activities | (1,383) | (18,672) | ||
Net cash provided by financing activities | 105,853 | 19,522 | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 342,395 | (53,530) | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 628,485 | 487,122 | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | 970,880 | 433,592 | ||
Supplemental Cash Flow Information: | ||||
Cash paid for interest | 22,645 | 43,559 | ||
Cash paid for operating leases included in the measurement of lease liabilities | 4,291 | 4,383 | ||
Non-cash investing activity: | ||||
Net securities retained from Structured Program transactions | 0 | 44,260 | ||
Accruals for property, equipment and software | 0 | 2,439 | ||
Non-cash investing and financing activity: | ||||
Transfer of whole loans to redeem certificates | 0 | 17,414 | ||
Net issuances of stock related to acquisition | 41,462 | [2] | 0 | |
Non-cash financing activity: | ||||
Exchange of common stock for preferred stock | $ 0 | $ 207,244 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||
[2] | Stock issued as part of the consideration paid related to the acquisition of Radius. See “ Note 2. Business Acquisition. ” |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Statement of Cash Flows [Abstract] | ||||||
Total cash and cash equivalents | $ 831,800 | [1] | $ 524,963 | |||
Restricted cash | [1],[2] | 139,080 | 103,522 | |||
Total cash, cash equivalents and restricted cash | $ 970,880 | $ 628,485 | $ 433,592 | $ 487,122 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||||
[2] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation LendingClub Corporation (LendingClub) was founded in 2006 to transform the banking industry by leveraging technology, data science and a marketplace model. LendingClub started by bringing a traditional credit product, the installment loan, into the digital age and became the largest provider of unsecured personal loans in the United States. On February 1, 2021, LendingClub completed the acquisition of Radius Bancorp, Inc. (Radius), whereby LendingClub became a bank holding company and formed LendingClub Bank, National Association (the Bank) as its wholly-owned subsidiary, through which it now operates the vast majority of its business. With the acquisition, LendingClub combined the complementary strengths of its digital lending capabilities with an award-winning digital bank. The accompanying unaudited condensed consolidated financial statements include LendingClub, its subsidiaries (collectively referred to as the Company, we, or us) and consolidated variable interest entities (VIEs). All intercompany balances and transactions have been eliminated. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim 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. Results reported in interim periods are not necessarily indicative of results for the full year or any other interim period. The acquisition significantly changed the presentation of the Company’s financial statements, which are now structured according to the presentation requirements for bank holding companies under Article 9 of the SEC’s Regulation S-X. Prior period amounts in the financial statements and related footnotes have been reclassified to conform to the current period presentation. See “ Note 2. Business Acquisition ” for detail illustrating the reclassification adjustments made to align with the current presentation. The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (Annual Report) filed on March 11, 2021. Significant Accounting Policies The Company’s significant accounting policies are discussed in “ Part II – Item 8 – Financial Statements and Supplementary Data – Note 2. Summary of Significant Accounting Policies ” in the Annual Report. There have been no changes to these significant accounting policies for the three month period ended March 31, 2021, except as noted below. Loans and Leases The Company initially classifies loans and leases as either loans held for sale or loans held for investment based on management’s assessment of the Company’s intent and ability to hold the loans for the foreseeable future or until maturity. Management’s intent and ability with respect to certain loans may change from time to time depending on a number of factors, for example economic, liquidity, and capital conditions. In order to reclassify loans to held for sale, management must have the intent to sell the loans and reasonably identify the specific loans to be sold. Loans classified as held for investment are reported at their amortized cost basis, which includes the principal amount outstanding, net of unamortized deferred fees and costs on originated loans, unamortized premiums and discounts on purchased loans, unless the fair value option was elected, in which case those loans are carried at fair value. Leases are reported at their net investment in the lease which includes the gross lease receivable and residual value, net of unearned income, unamortized deferred fees and costs on originated leases, and unamortized premiums and discounts on purchased leases. Deferred origination fees and costs, and premiums and discounts on purchased loans, are amortized over the contractual life of the related loan and leases as interest income using the effective interest method. Accrued interest receivable on loans and leases is included in “Other assets” on the Company’s Condensed Consolidated Balance Sheets. For loans and leases held for investment at amortized cost, accrued interest income is calculated based on the contractual interest rate of the loan and recorded as interest income as earned. The accrual of interest and amortization of net deferred origination costs and fees is discontinued and the loan or lease is placed on nonaccrual status when the collectability of principal, interest or lease receivable is uncertain or payments of principal, interest or lease receivables have become past due 90 days or more. Past due status is based on the contractual terms. When a loan or lease held for investment is placed on nonaccrual status, all income previously accrued but not collected is reversed against the current period’s income. Because the Company has a nonaccrual policy which results in the timely reversal of past-due accrued interest, it does not record an allowance for expected credit losses on accrued interest receivable. Interest received on nonaccrual loans and leases is either applied against the principal balance or reported as income depending on management’s judgment as to the collectability of principal. Nonaccrual loans and leases are returned to accrual status when there no longer exists concern over collectability, the borrower has demonstrated, over time, both the intent and ability to repay and the loan or lease has been brought current and future payments are reasonably assured. The Company has elected the fair value option for loans originated and held for sale. Changes in the fair value of loans held for sale are recorded in “Marketplace revenue” in the Condensed Consolidated Statements of Operations in the period of the fair value changes. Origination fees are recognized in earnings within “Marketplace revenue” in the Condensed Consolidated Statements of Operations when received from the borrower at the time of origination. Accrued interest income on loans held for sale is calculated based on the contractual interest rate of the loan and recorded as interest income as earned. The Company places loans held for sale on nonaccrual status at 90 days past due. When a loan held for sale is placed on nonaccrual status, the Company stops accruing interest and reverses all accrued but unpaid interest as of such date. The Company charges off loans held for sale no later than 120 days past due. Allowance for Expected Credit Losses The allowance for expected credit losses for loans and leases, and reserve for unfunded lending commitments (collectively the allowance for expected credit losses (ACL)), are valuation reserves that represent the Company’s best estimate of expected credit losses (ECL) on the Company’s assets measured at amortized cost and unfunded lending commitments. The allowance for expected credit losses is measured based on a lifetime expected loss model, which does not require a loss event to occur before a credit loss is recognized. Under the lifetime expected credit loss model, the Company estimates the allowance based on relevant available information related to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. The Company evaluates its estimate of expected credit losses each reporting period and records any additions to the allowance on the Condensed Consolidated Statements of Operations as a provision for credit losses. Any write-offs of amounts determined to be uncollectible are charged to the allowance. Estimates of expected credit losses include expected recoveries of amounts previously written-off and expected to be written-off. There could be instances where including expected recoveries of previously written-off loans in the estimate of expected credit losses may result in a negative allowance. The allowance for expected credit losses is measured on a collective basis when loans share similar risk characteristics. Relevant risk characteristics for the consumer portfolio include product type, loan term, and monthly vintage. Relevant risk characteristics for the commercial portfolio include product type and purchased credit deteriorated (PCD) status. Loans measured on a collective basis generally have an allowance for expected credit losses which are made up of a quantitative, or modeled, component, and a qualitative component. The Company will continue to monitor its loan pools on an ongoing basis and adjust accordingly as the risk characteristics of the financial assets may change over time. If a given financial asset does not share similar risk characteristics with other financial assets, the Company shall measure ECL on an individual, rather than on a collective basis. Loans measured on an individual basis generally have an allowance for expected credit losses which is measured in reference to any collateral securing the loan and/or expected cash flows which are specific to the borrower. Allowance Calculation Methodology The Company generally estimates ECL over the contractual term of its loans. The contractual term is adjusted for expected prepayments when appropriate. Expected renewals and extensions do not adjust the contractual term unless the extension or renewal option is through a troubled debt restructuring (TDR) that is reasonably expected to occur or represents an unconditionally cancellable option held by the borrower. The quantitative, or modeled, component of the ACL is primarily based on statistical models that use known or estimated data as of the balance sheet date and forecasted data over the reasonable and supportable period. Known and estimated data include current probability of default, loss given default and exposure at default, timing and amount of expected prepayments, timing and amount of expected draws (for unfunded lending commitments), and relevant risk characteristics. Certain of the Company’s portfolios have limited historical loss data available internally. For these portfolios, the Company uses external credit loss information from the FDIC Call Report and Small Business Administration (SBA) data, which includes historical charge-off and balance data for peer banking institutions. The Company obtains historical macroeconomic data dating back to 2004 from the St. Louis Federal Reserve Economic Database (FRED) and Moody’s Analytics to inform its view of the long-term condition of the economy. Forward-looking macroeconomic factors considered in the Company’s statistical models include Gross Domestic Product (GDP), unemployment rate, housing prices, and retail sales. Forward-looking macroeconomic factors are incorporated into the Company’s models for a two-year reasonable and supportable economic forecast period followed by a one-year reversion period during which expected credit losses are expected to revert back on a straight-line basis to historical losses unadjusted for economic conditions. The reasonable and supportable economic forecast period and reversion methodology are accounting estimates which may change in future periods as a result of changes to the current macroeconomic environment. The Company’s statistical models produce expected cash flows, which are then discounted at the effective interest rate to derive net present value. This net present value is then compared to the amortized cost basis to derive the expected credit losses. As a result, the quantitative, or modeled, portion of ACL is estimated using a discounted cash flow (DCF) approach. The Company also considers the need for qualitative adjustments to the modeled estimate of expected credit losses. For this purpose, the Company established a qualitative factor framework to periodically assess qualitative adjustments to address certain identified elements that are not directly captured by the expected credit loss models. These factors may include the impact of risk rating downgrades, changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in lending management and other external factors. Zero Credit Loss Expectation Exception The Company has a zero loss expectation when the loans, or portions thereof, are issued or guaranteed by certain U.S. government entities or agencies, and those entities or agencies have a long history of no defaults and the highest credit ratings issued by rating agencies. Loans held for investment which meet this criterion do not have an allowance for expected credit losses. Reserve for Unfunded Lending Commitments The Company also estimates expected credit losses associated with off-balance sheet commitments such as commitments to extend credit and unused lines of credit. The Company estimates these expected credit losses for the unfunded portion of the commitments that are not unconditionally cancellable depending on the likelihood that funding will occur. The reserve for unfunded lending commitments is reported as a liability within “Other liabilities” on the Company’s Condensed Consolidated Balance Sheets. Individually Assessed Loans Loans whose terms have been modified in a troubled debt restructuring (TDR) and collateral-dependent financial assets are individually assessed for purposes of measuring expected credit losses. The allowance for expected credit losses on loans modified in a TDR is calculated using the discounted cash flow approach and is recorded as the difference between the amortized cost basis and the expected future cash flows. For purposes of discounting, the Company uses the original effective interest rate of the TDR loan. For loans that are determined to be collateral dependent, the allowance for expected credit losses is determined using the fair value of the collateral method. Loans are considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially through sale or operation of the collateral. For such loans, the allowance is calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. Purchased Credit Deteriorated Assets PCD assets are acquired financial assets (or groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment. The Company considers indicators such as loan rating, FICO score, days past due status, nonaccrual status, TDR status, charge-off status, bankruptcy, purchased credit impaired (PCI) status from prior acquisition, COVID-19 modification or industry risk rating to determine whether an acquired asset meets the definition of PCD. PCD assets are recorded on the acquisition date at their purchase price plus any related initial ACL, which results in a “gross-up” of the asset’s initial amortized cost basis. Recognition of the initial ACL upon acquisition for PCD assets does not impact net income. Subsequent to the acquisition date, any changes in the ACL are recorded through the provision for credit losses on the income statement. Acquired non-PCD assets are accounted for in a manner similar to originated financial assets, whereby any initial ACL is recorded through the provision for credit losses in the income statement. Radius Acquisition In connection with the Radius acquisition, the Company was required to record an allowance for non-PCD assets with a corresponding increase to the provision for credit losses. For acquired PCD loans, an allowance was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, the CECL allowance included as part of the grossed-up loan balance at acquisition was immediately written-off, resulting in a zero period-end allowance balance and no impact on the ACL rollforward. See “ Note 2. Business Acquisition ” for additional detail. Charge-Offs Charge-offs are recorded when the Company determines that a loan balance is uncollectible or a loss-confirming event has occurred. Loss confirming events usually involve the receipt of specific adverse information about the borrower and may include borrower delinquency status, bankruptcy, foreclosure, or receipt of an asset valuation indicating a shortfall between the value of the collateral and the book value of the loan when that collateral asset is the sole source of repayment. A full or partial charge-off reduces the amortized cost basis of the loan and the related ACL. For acquired PCD loans where all or a portion of the loan balance had been charged off prior to acquisition, and for which active collection efforts are still underway, the CECL allowance included as part of the grossed-up loan balance at acquisition is immediately charged off if required by the Company’s existing charge off policy. Additionally, the Company is required to consider its existing policies in determining whether to charge off any financial assets, regardless of whether a charge-off was recorded by the predecessor company. The initial ACL recognized on PCD assets includes the gross-up of the loan balance reduced by immediate charge-offs for loans previously charged off by the predecessor company or which meet the Company’s charge-off policy on the date of acquisition. Charge-offs against the allowance related to such acquired PCD loans do not result in an income statement impact. See “ Note 6. Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses ” for additional detail. Business Combinations The Company accounts for business combinations using the acquisition method. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. See “ Note 2. Business Acquisition ” for further discussion of the acquisition of Radius and its impact on the Company’s consolidated financial statements. Goodwill and Other Intangible Assets Goodwill is the purchase consideration of an acquired business in excess of the aggregate fair value of the identified net assets acquired. The Company allocates goodwill to the reporting unit(s) (generally defined as an operating segment or one level below an operating segment for which financial information is available and reviewed regularly by management) that are expected to benefit from the synergies of the business combination. The goodwill of each reporting unit is reviewed for impairment annually or 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. Our annual impairment testing is completed in the fourth quarter. Impairment exists whenever the carrying value of goodwill exceeds its estimated fair value. Adverse changes in impairment indicators such as lower than forecast financial performance, increased competition, increased regulatory oversight, or unplanned changes in operations could result in impairment. Intangible assets with a defined life 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 and its carrying amount exceeds its fair value. The Company does not have indefinite-lived intangible assets other than goodwill. Adoption of New Accounting Standards The Company did not adopt any new accounting standards during the three month period ended March 31, 2021. 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 the 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 in 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. |
Business Acquisition
Business Acquisition | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisition On February 1, 2021, the Company completed the acquisition of Radius Bancorp, Inc. (Radius) in accordance with the Plan of Merger previously disclosed. The acquisition combined the Company’s complementary digital lending capabilities with those of a digital bank. Upon closing, LendingClub acquired all outstanding voting equity interests of Radius in exchange for total consideration as follows: Cash paid $ 140,256 Fair value of common stock issued (1) 40,808 Consideration related to share-based payments (2) 5,742 Total consideration paid $ 186,806 (1) Calculated using the closing stock price of $10.85 on January 29, 2021, the most recent trading day preceding the acquisition, multiplied by 3,761,114 shares issued pursuant to the Plan of Merger. (2) In connection with the acquisition, LendingClub agreed to convert equity awards held by Radius employees into cash and LendingClub awards pursuant to the Plan of Merger. The acquisition was accounted for as a purchase business combination. Accordingly, the assets acquired and liabilities assumed are presented at their fair values determined as of the acquisition date. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. Fair value estimates related to the acquired assets and liabilities are subject to adjustment for up to one year after the closing date of the acquisition as additional information becomes available. The following table presents an allocation of the total consideration paid to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed: Assets acquired: Cash and due from banks $ 18,184 Interest-bearing deposits in banks 650,052 Total cash and cash equivalents 668,236 Securities available for sale at fair value 259,037 Loans and leases held for investment 1,610,054 Allowance for loan and lease losses (12,440) Loans and leases held for investment, net 1,597,614 Property, equipment and software, net 1,926 Goodwill 75,717 Other assets 86,482 Total assets 2,689,012 Liabilities assumed: Non-interest bearing deposits 167,187 Interest-bearing deposits 1,862,272 Total deposits 2,029,459 Short-term borrowings 9,870 Advances from PPPLF 420,962 Other long-term debt 18,630 Other liabilities 23,285 Total liabilities 2,502,206 Total consideration paid $ 186,806 The purchase price exceeded the estimated fair value of the tangible and identifiable intangible assets acquired and liabilities assumed and, as a result of the purchase allocation, the Company recorded goodwill of $75.7 million, which is not deductible for tax purposes. The goodwill recognized is attributable primarily to strategic and financial benefits of the acquisition, including increased resiliency with access to stable, low-cost deposit funding replacing higher-cost and more volatile third-party warehouse funding; increased and more stable revenue driven by increased net interest income from loans held for investment; expense benefits by capturing the fees that were historically paid to our third-party issuing banks; and the ability to attract new members and deepen relationships with existing members through the addition of banking services. The carrying amounts of cash, securities available for sale, short-term borrowings, advances from PPPLF, and certain other assets and liabilities were determined to be a reasonable estimate of the fair value of such items. The following is a description of the methods used to determine the fair values of significant assets and liabilities. Securities available for sale : The Company acquired a debt securities portfolio containing U.S. agency residential mortgage-backed securities, municipal securities, U.S. agency securities, commercial mortgage-backed securities and other asset-backed securities. The acquisition date fair value of the securities was based on third-party dealer quotes which reflect exit prices pursuant to the guidance on fair value measurement. Loans and leases held for investment : Fair values for loans and leases were primarily based on a discounted cash flow methodology that considered contractual terms, credit loss expectations, market interest rates, and other market factors such as liquidity from the perspective of a market participant. Loan portfolios were pooled together according to similar characteristics such as product type, lien position, risk grade, credit deterioration status, FICO score, and collateral type. Loan pools were treated in the aggregate when applying various valuation techniques. The contractual terms, default rates, loss given default rates, loss severity and recovery lag, and prepayment rates were the key assumptions embedded into the estimated cash flow valuation. These assumptions were informed by internal data on loan characteristics, historical loss experience, and current and forecasted economic conditions. The discount rates used are based on current market rates for new originations of comparable loans and include adjustments for liquidity. All of the merged loans were marked to fair value as of the acquisition date and, therefore, there was no carryover of the allowance for expected credit losses that had previously been recorded by Radius. Immediately following the acquisition, the Company recorded an ACL on non-PCD loans of $6.9 million through an increase to the provision for credit losses. The initial ACL for PCD loans of $12.4 million was recorded through an adjustment to the amortized cost basis of the loans. Core deposit intangible (CDI) : This intangible asset represents the value of the relationships with certain deposit clients and is included in “Other assets” in the Company’s Condensed Consolidated Balance Sheets. The fair value was estimated based on an after-tax cost savings method of the income approach. Under this method, fair value is equal to the present value of the after-tax cost savings or differential cash flows generated by the acquired deposit base. Cost savings is defined as the difference between the effective cost of funds on deposits and the cost of an equal amount of funds from an alternative source. Deposits were pooled by product type and channel. The discount rates used for CDI assets are based on current market participant rates. The CDI is being amortized over 10 years based upon the estimated economic benefits received. Other Investments: The fair value of an investment in a private entity that was sold after the acquisition was determined based upon the price expected to be received in the subsequent sale. This investment was included in “Other assets” in the Company’s Condensed Consolidated Balance Sheets. Interest-bearing deposits : In determining the fair value of certificates of deposit, the cash flows of the contractual interest payments during the specific period of the certificates of deposit and scheduled principal payout were discounted to present value at market-based interest rates. Subordinated debt : The fair value of subordinated debt was determined by using a discounted cash flow method using a market participant discount rate for similar instruments. Subordinated debt is included in “Other long-term debt” in the Company’s Condensed Consolidated Balance Sheets. The Company incurred approximately $16 million of expenses in connection with the acquisition. The table below presents certain unaudited pro forma financial information for illustrative purposes only, for the first quarters of 2021 and 2020, as if the acquisition took place on January 1, 2020. The pro forma information combines the historical results of Radius with the Company’s, adjusting for the estimated impact of certain fair value adjustments for the respective periods. The pro forma information does not reflect changes to the provision for credit losses resulting from recording loan assets as fair value, cost savings, or business synergies. As a result, actual amounts would have differed from the unaudited pro forma information presented and the differences could be significant. Three Months Ended 2021 2020 Total net revenue $ 112,911 $ 144,593 Consolidated net loss $ (54,020) $ (54,611) For the first quarter of 2021, actual total net revenue of approximately $15 million and net loss of approximately $3 million from the Radius acquisition are included in the Company’s Condensed Consolidated Statements of Operations. The net loss included an ACL on non-PCD loans of $6.9 million, as described above. Summary of Reclassification Adjustments The classification of the items presented by the Company in its consolidated financial statements under GAAP has been adjusted to align with the presentation requirements under Article 9 of the SEC’s Regulation S-X for bank holding companies. The presentation shown below is reflective of what is generally expected to be used by the combined company under GAAP. As of December 31, 2020 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Assets Cash and cash equivalents $ 524,963 $ (524,963) $ — Cash and due from banks — 5,197 5,197 Interest bearing deposits in banks — 519,766 519,766 Total cash and cash equivalents — 524,963 524,963 Restricted cash 103,522 — 103,522 Securities available for sale at fair value 142,226 — 142,226 Loans held for investment at fair value 636,686 (636,686) — Loans held for investment by the Company at fair value 49,954 (49,954) — Loans held for sale by the Company at fair value 121,902 (121,902) — Loans held for sale at fair value — 121,902 121,902 Retail and certificate loans held for investment at fair value — 636,686 636,686 Other loans held for investment at fair value — 49,954 49,954 Accrued interest receivable 5,205 (5,205) — Property, equipment and software, net 96,641 — 96,641 Operating lease assets 74,037 (74,037) — Intangible assets, net 11,427 (11,427) — Other assets 96,730 90,669 187,399 Total assets $ 1,863,293 $ — $ 1,863,293 Liabilities and Equity Accounts payable $ 3,698 $ (3,698) $ — Accrued interest payable 4,572 (4,572) — Operating lease liabilities 94,538 (94,538) — Accrued expenses and other liabilities 101,457 (101,457) — Payable to investors 40,286 (40,286) — Credit facilities and securities sold under repurchase agreements 104,989 (104,989) — Short-term borrowings — 104,989 104,989 Retail notes, certificates and secured borrowings at fair value 636,774 — 636,774 Payable on Structured Program borrowings 152,808 — 152,808 Other liabilities — 244,551 244,551 Total liabilities 1,139,122 — 1,139,122 Equity Common stock 881 — 881 Additional paid-in capital 1,508,020 — 1,508,020 Accumulated deficit (786,214) — (786,214) Accumulated other comprehensive income 1,484 — 1,484 Total equity 724,171 — 724,171 Total liabilities and equity $ 1,863,293 $ — $ 1,863,293 Three months ended March 31, 2020 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Net Revenue Transaction fees $ 136,243 $ (136,243) $ — Interest income 69,411 (69,411) — Interest expense (44,241) 44,241 — Net fair value adjustments (101,738) 101,738 — Net interest income and fair value adjustments (76,568) 76,568 — Investor fees 41,759 (41,759) — Gain on sales of loans 14,261 (14,261) — Net investor revenue (20,548) 20,548 — Other revenue 4,511 (4,511) — Total net revenue 120,206 (120,206) — Non-interest income Marketplace revenue (1) — 102,477 102,477 Other non-interest income — 4,511 4,511 Total non-interest income — 106,988 106,988 Interest income Interest on loans held for sale — 27,376 27,376 Interest on retail and certificate loans held for investment at fair value — 35,376 35,376 Interest on other loans held for investment at fair value — 1,999 1,999 Interest on securities available for sale — 3,779 3,779 Other interest income — 881 881 Total interest income — 69,411 69,411 Interest expense Interest on short-term borrowings — 7,398 7,398 Interest on retail notes, certificates and secured borrowings — 35,376 35,376 Interest on Structured Program borrowings — 2,299 2,299 Interest on other long-term debt — 140 140 Total interest expense (2) — 45,213 45,213 Net interest income — 24,198 24,198 Total net revenue (3) — 131,186 131,186 Provision for credit losses (3) — 10,980 10,980 Operating expenses Sales and marketing 49,784 (49,784) — Origination and servicing 20,994 (20,994) — Engineering and product development 38,710 (38,710) — Other general and administrative 58,486 (58,486) — Total operating expenses 167,974 (167,974) — Non-interest expense Compensation and benefits — 75,545 75,545 Marketing — 39,081 39,081 Equipment and software — 6,490 6,490 Occupancy — 6,813 6,813 Depreciation and amortization — 12,873 12,873 Professional services — 14,141 14,141 Other non-interest expense — 13,031 13,031 Total non-interest expense — 167,974 167,974 Loss before income tax expense (47,768) — (47,768) Income tax expense 319 — 319 Consolidated net loss $ (48,087) $ — $ (48,087) (1) See “ Note 3. Marketplace Revenue ” for additional detail. (2) The increase in total interest expense relates to valuation adjustments on Structured Program borrowings reclassified from net fair value adjustments to interest expense. (3) The increase in total net revenue relates to credit valuation adjustments on securities available for sale reclassified from net fair value adjustments to provision for credit losses. |
Marketplace Revenue
Marketplace Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Marketplace Revenue | Marketplace Revenue Marketplace revenue consists of (i) origination fees, (ii) servicing fees, (iii) gain (loss) on sales of loans and (iv) net fair value adjustments, as described below. Origination Fees: Origination fees are primarily fees earned related to originating and issuing unsecured personal loans that are held for sale. Origination fees are paid directly to the Company by borrowers upon the origination of the loan. In addition, origination fees include transaction fees that are paid to the Company by issuing bank partners or education and patient service providers for the work performed in facilitating the origination of loans by the issuing banks. Prior to the acquisition of Radius, the Company relied on third-party issuing banks to originate and fund loans initiated by borrowers. Following the acquisition, the Company became the originator and lender for all unsecured personal and auto loans. However, the Company continues to utilize issuing bank partners to fund education and patient finance loans, which originate and service such loans and from whom the Company receives transaction fees. Servicing Fees: The Company receives servicing fees to compensate it for the costs incurred in servicing a loan, including managing payments from borrowers, collections and payments to investors. The amount of servicing fee revenue earned is predominantly affected by the servicing rates paid by investors and the outstanding principal balance of loans. Servicing fee revenue related to whole loans sold also includes the change in fair value of servicing assets and liabilities associated with the loans. Servicing rights are recorded as either an asset or liability depending on the degree to which the contractual loan servicing fee is above or below an estimated market rate loan servicing fee. Gain (Loss) on Sales of Loans: In connection with loan sales and in addition to servicing fees earned with respect to the corresponding loan, the Company recognizes a gain or loss on the sale of that loan based on the level to which the contractual loan servicing fee is above or below an estimated market rate loan servicing fee. Additionally, the Company recognizes transaction costs as a loss on sale of loans. Net Fair Value Adjustments: The Company records fair value adjustments on loans that are recorded at fair value. The following table presents components of marketplace revenue for the periods presented: Three Months Ended 2021 2020 Origination fees $ 55,559 $ 136,243 Servicing fees 23,166 41,759 Gain on sales of loans 8,323 14,261 Net fair value adjustments (1) (5,321) (89,786) Total marketplace revenue $ 81,727 $ 102,477 (1) Certain prior period valuation adjustments on securities available for sale and Structured Program borrowings were reclassified from net fair value adjustments to provision for credit losses and interest expense, respectively, to conform to the current period presentation. Revenue from Contracts with Customers The Company’s revenue from contracts with customers includes i) transaction fees received from issuing bank partners and ii) referral fees from third-party companies. Transaction fees are presented as a component of origination fees in “Marketplace revenue” and referral fees are presented as a component of “Other non-interest income” in the Condensed Consolidated Statements of Operations. Upon the acquisition of Radius, the Company’s principal sources of revenue are marketplace revenue and interest income on loans, which are outside the scope of ASC 606, Revenue from Contracts with Customers . The remainder of the Company’s revenue is classified as non-interest income and is earned from a variety of sources, such as custodial and other fees, service charges, gains and losses and other non-interest income. The following table presents the Company’s revenue from contracts with customers, disaggregated by revenue source for services transferred over time, for the first quarters of 2021 and 2020: Three Months Ended 2021 2020 Transaction fees $ 22,402 $ 136,243 Referral fees 2,594 1,614 Total revenue from contracts with customers $ 24,996 $ 137,857 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 first quarters of 2021 and 2020. 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 both March 31, 2021 and December 31, 2020. 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 first quarters of 2021 and 2020. For additional detail on the Company’s accounting policy regarding revenue recognition, see “ Note 1. Summary of Significant Accounting Policies. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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 income (loss) per share of common stock and Series A preferred stock: Three Months Ended March 31, 2021 2020 Common Stock Preferred Stock (1)(2) Common Stock Preferred Stock (1)(2) Allocation of undistributed consolidated net loss $ (45,776) $ (1,308) $ (45,240) $ (2,847) Deemed dividend — — (50,204) 50,204 Net income (loss) attributable to stockholders $ (45,776) $ (1,308) $ (95,444) $ 47,357 Weighted-average common shares – Basic and Diluted 92,666,169 2,648,758 86,505,560 2,579,710 Net income (loss) per share attributable to stockholders – Basic and Diluted $ (0.49) $ (0.49) $ (1.10) $ 18.36 (1) Presented on an as-converted basis. 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. 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 stock that were excluded from the Company’s diluted net income (loss) per share computation because their effect would have been anti-dilutive for the periods presented: Three Months Ended 2021 2020 Preferred stock 2,648,758 2,579,710 RSUs and PBRSUs 1,468,191 30,852 Stock options 371,367 283,201 Total 4,488,316 2,893,763 |
Securities Available for Sale
Securities Available for Sale | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale The Company’s securities available for sale portfolio includes debt securities obtained in the first quarter of 2021 upon its acquisition of Radius and asset-backed securities related to the Company’s Structured Program transactions. The Company’s Structured Program transactions included (i) asset-backed securitization transactions and (ii) Certificate Program transactions. Certificate Program transactions included CLUB Certificate and Levered Certificate transactions. The Company sponsored the sale of unsecured personal loans through the issuance of certificate securities under our Certificate Program. 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 student loan receivables and small business association loans. The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of March 31, 2021 and December 31, 2020, were as follows: March 31, 2021 Amortized Gross Gross Allowance for Credit Losses Fair U.S. agency residential mortgage-backed securities $ 72,348 $ 19 $ (1,637) $ — $ 70,730 Asset-backed senior securities (1) 62,894 59 — — 62,953 CLUB Certificate asset-backed securities (1) 40,741 1,515 (241) (48) 41,967 Other asset-backed securities 29,858 79 (137) — 29,800 Commercial mortgage-backed securities 28,856 12 (428) — 28,440 U.S. agency securities 20,078 5 (799) — 19,284 Asset-backed subordinated securities (1) 15,044 3,688 (79) (866) 17,787 Municipal securities 3,312 — (54) — 3,258 Other securities 200 — — — 200 Total securities available for sale (2) $ 273,331 $ 5,377 $ (3,375) $ (914) $ 274,419 December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair Asset-backed senior securities (1) $ 75,332 $ 67 $ (27) $ — $ 75,372 CLUB Certificate asset-backed securities (1) 54,525 576 (772) (4,190) 50,139 Asset-backed subordinated securities (1) 29,107 2,128 (174) (14,546) 16,515 Other securities 200 — — — 200 Total securities available for sale (2) $ 159,164 $ 2,771 $ (973) $ (18,736) $ 142,226 (1) As of March 31, 2021 and December 31, 2020, $91.9 million and $119.3 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. (2) As of March 31, 2021, and December 31, 2020, includes $238.3 million and $133.5 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 March 31, 2021 and December 31, 2020, aggregated by period of continuous unrealized loss, is as follows: Less than 12 months Total March 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized U.S. agency residential mortgage-backed securities $ 63,011 $ (1,637) $ — $ — $ 63,011 $ (1,637) Asset-backed securities related to Structured Program transactions 722 (79) 12,345 (241) 13,067 (320) Other asset-backed securities 17,534 (137) — — 17,534 (137) Commercial mortgage-backed securities 24,862 (428) — — 24,862 (428) U.S. agency securities 10,098 (799) — — 10,098 (799) Municipal securities 3,258 (54) — — 3,258 (54) Total securities with unrealized losses (1) $ 119,485 $ (3,134) $ 12,345 $ (241) $ 131,830 $ (3,375) 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) (1) The number of investment positions with unrealized losses at March 31, 2021 and December 31, 2020 totaled 124 and 55, respectively. In the first quarter of 2020, 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. In the first quarter of 2021, 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 first quarters of 2021 and 2020, the Company recognized $(2.5) million and $11.0 million in credit recovery and loss expense, respectively. The following table presents the activity in the allowance for credit losses for securities available for sale, by major security type, for the first quarters of 2021 and 2020: Allowance for Credit Losses CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of January 1, 2021 $ (4,190) $ (14,546) $ (18,736) Reversal of securities available for sale 188 2,282 2,470 Charge-offs 3,954 11,398 15,352 Ending balance as of March 31, 2021 $ (48) $ (866) $ (914) Allowance for Credit Losses CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of January 1, 2020 $ — $ — $ — Impairment on securities available for sale (4,684) (6,296) (10,980) Allowance arising from PCD financial assets (3,954) (3,901) (7,855) Ending balance as of March 31, 2020 $ (8,638) $ (10,197) $ (18,835) Securities available for sale purchased with credit deterioration during the first quarter of 2020 were as follows: Three Months Ended March 31, 2020 Purchase price of PCD securities at acquisition $ 23,043 Allowance for credit losses on PCD securities at acquisition 7,885 Par value of acquired PCD securities at acquisition $ 30,928 There were no securities available for sale purchased with credit deterioration during the first quarter of 2021. The contractual maturities of securities available for sale at March 31, 2021, were as follows: Amortized Cost Fair Value Weighted- average Yield (1) Due within 1 year: Other securities 200 200 Total due within 1 year 200 200 0.02 % Due after 5 years through 10 years: U.S. agency residential mortgage-backed securities 449 446 Other asset-backed securities 1,084 1,084 Commercial mortgage-backed securities 3,503 3,403 U.S. agency securities 4,092 4,094 Municipal securities 471 463 Total due after 5 years through 10 years 9,599 9,490 0.97 % Due after 10 years: U.S. agency residential mortgage-backed securities 71,899 70,284 Other asset-backed securities 28,774 28,716 Commercial mortgage-backed securities 25,353 25,037 U.S. agency securities 15,986 15,190 Municipal securities 2,841 2,795 Total due after 10 years 144,853 142,022 1.06 % Asset-backed securities related to Structured Program transactions 118,679 122,707 6.04 % Total securities available for sale $ 273,331 $ 274,419 3.22 % (1) The weighted-average yield is computed using the amortized cost at March 31, 2021. There were no Structured program transactions in the first quarter of 2021. During the first quarter of 2020, the Company and Consumer Loan Underlying Bond Depositor LLC (Depositor), a subsidiary of the Company, sold a combined $1.0 billion 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 8. Fair Value of Assets and Liabilities .” Proceeds and gross realized gains and losses from other sales of securities available for sale were as follows: Three Months Ended March 31, 2021 2020 Proceeds $ 106,192 $ 2,396 Gross realized gains $ 708 $ 3 Gross realized losses $ (952) $ (2) |
Loans and Leases Held for Inves
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses | 3 Months Ended |
Mar. 31, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses | Loans and Leases Held for Investment, Net of Allowance For Loan and Lease LossesAs a result of the acquisition of Radius and becoming a bank holding company, LendingClub now records loans and leases held for investment at amortized cost, and, loans held for sale at fair value. Prior to the acquisition, all loans were recorded at fair value. Therefore, the following disclosures apply to loans and leases held for investment at amortized cost. Accrued interest receivable is excluded from the amortized cost basis of loans and leases held for investment and is reported within “Other assets” on the Company’s Condensed Consolidated Balance Sheets. Accrued interest within that caption related to loans and leases held for investment was $9.0 million as of March 31, 2021. Loans and Leases Held for Investment The Company defines its loans and leases held for investment portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable: March 31, 2021 Unsecured personal $ 321,104 Residential mortgages 164,002 Secured consumer 387,244 Other consumer 34 Total consumer loans held for investment 872,384 Equipment finance (1) 145,885 Commercial real estate 302,445 Commercial and industrial (2) 794,718 Total commercial loans and leases held for investment 1,243,048 Total loans and leases held for investment 2,115,432 Allowance for loan and lease losses (36,132) Loans and leases held for investment, net $ 2,079,300 (1) Comprised of sales-type leases for equipment. See “ Note 17. Leases ” for additional information. (2) Includes $664.4 million of Paycheck Protection Program (PPP) loans. The Company does not measure an allowance for expected credit losses on these loans. The activity in the allowance for expected credit losses by portfolio segment for the quarter ended March 31, 2021 was as follows: March 31, 2021 Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ — $ — $ — Credit loss expense for loans and leases held for investment 19,182 4,371 23,553 Initial allowance for PCD loans acquired during the period (1) 603 11,837 12,440 Charge-offs — — — Recoveries — 139 139 Allowance for loan and lease losses, end of period $ 19,785 $ 16,347 $ 36,132 Reserve for unfunded lending commitments, beginning of period $ — $ — $ — Credit loss expense for unfunded lending commitments 6 404 410 Reserve for unfunded lending commitments, end of period $ 6 $ 404 $ 410 (1) For acquired PCD loans, an allowance of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, a CECL allowance of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million. The Company did not recognize an allowance for loan and lease losses as of December 31, 2020 because it did not carry loans held for investment at amortized cost as of that date. During the first quarter of 2021, as a result of the Radius acquisition, the Company acquired and began originating loans held for investment at amortized cost. The allowance for loan and lease losses balance as of March 31, 2021 relates to the recognition of expected credit losses on these purchased and originated loans. Consumer Lending Credit Quality Indicators The Company evaluates the credit quality of its consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is based upon borrower payment activity relative to the contractual terms of the loan. The following table presents the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status as of March 31, 2021 and origination year: March 31, 2021 Term Loans and Leases by Origination Year 2021 2020 2019 2018 2017 Prior Within Revolving Period Total Unsecured personal Current $ 321,104 $ — $ — $ — $ — $ — $ — $ 321,104 30-59 days past due — — — — — — — — 60-89 days past due — — — — — — — — 90 or more days past due — — — — — — — — Total unsecured personal 321,104 — — — — — — 321,104 Residential mortgages Current 5,484 41,480 34,515 13,319 5,109 59,215 1,295 160,417 30-59 days past due — — — — 94 358 — 452 60-89 days past due — — 393 — — — — 393 90 or more days past due — — 970 678 255 837 — 2,740 Total residential mortgages 5,484 41,480 35,878 13,997 5,458 60,410 1,295 164,002 Secured consumer Current 55,457 139,010 77,488 62,528 22,299 25,688 — 382,470 30-59 days past due — — — — — — — — 60-89 days past due — — — — — — — — 90 or more days past due — — 1,203 2,655 916 — — 4,774 Total secured consumer 55,457 139,010 78,691 65,183 23,215 25,688 — 387,244 Other consumer Current 25 — — — — — 9 34 30-59 days past due — — — — — — — — 60-89 days past due — — — — — — — — 90 or more days past due — — — — — — — — Total other consumer 25 — — — — — 9 34 Total consumer loans held for investment $ 382,070 $ 180,490 $ 114,569 $ 79,180 $ 28,673 $ 86,098 $ 1,304 $ 872,384 Commercial Lending Credit Quality Indicators The Company evaluates the credit quality of its commercial loan portfolio based on regulatory risk ratings. The Company categorizes loans and leases into risk ratings based on relevant information about the quality and realizable value of collateral, if any, and the ability of borrowers to service their debts, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans based on their associated credit risk and performs this analysis whenever credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. Risk rating classifications consist of the following: Special Mention – Loans and leases with a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date. Substandard – Loans and leases that are inadequately protected by the current sound worth and paying capacity of the obligator or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the repayment and liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Normal payment from the borrower is in jeopardy, although loss of principal, while still possible, is not imminent. Doubtful – Loans and leases that have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The following table presents the classes of financing receivables within the commercial portfolio segment by risk rating as of March 31, 2021 and origination year: March 31, 2021 Term Loans and Leases by Origination Year 2021 2020 2019 2018 2017 Prior Within Revolving Period Total Equipment finance Pass $ 14,126 $ 44,674 $ 38,224 $ 25,329 $ 8,434 $ 13,980 $ — $ 144,767 Special mention — 257 — 861 — — — 1,118 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 14,126 44,931 38,224 26,190 8,434 13,980 — 145,885 Commercial real estate Pass 10,601 56,178 67,315 44,612 25,050 69,509 3,783 277,048 Special mention — 8,325 276 — — 822 — 9,423 Substandard — — — 2,959 445 12,363 — 15,767 Doubtful — — — — — — — — Loss — — — — — 207 — 207 Total commercial real estate 10,601 64,503 67,591 47,571 25,495 82,901 3,783 302,445 Commercial and industrial Pass 249,629 459,662 31,010 11,571 16,743 11,107 2,436 782,158 Special mention — — 2,352 704 1,064 110 — 4,230 Substandard — 1,118 133 2,340 1,885 1,791 — 7,267 Doubtful — — — — — — — — Loss — — — — — 1,063 — 1,063 Total commercial and industrial (1) 249,629 460,780 33,495 14,615 19,692 14,071 2,436 794,718 Total commercial loans and leases held for investment 274,356 570,214 139,310 88,376 53,621 110,952 6,219 1,243,048 (1) Includes $664.4 million of PPP loans. The Company does not measure an allowance for expected credit losses on these loans. The following table presents an analysis of the past-due loans and leases held for investment within the commercial portfolio segment at March 31, 2021: March 31, 2021 Days Past Due Current-29 30-59 60-89 90 or more Total Equipment finance $ 145,885 $ — $ — $ — $ 145,885 Commercial real estate 300,350 1,226 — 869 302,445 Commercial and industrial (1) 792,647 1,008 — 1,063 794,718 Total commercial loans and leases held for investment $ 1,238,882 $ 2,234 $ — $ 1,932 $ 1,243,048 (1) Includes $664.4 million of PPP loans. The Company does not measure an allowance for expected credit losses on these loans. Nonaccrual Assets Nonaccrual loans and leases are those for which accrual of interest has been suspended. Loans and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection does not warrant further accrual. The following table presents nonaccrual loans and leases as of March 31, 2021: March 31, 2021 Nonaccrual (1) Nonaccrual with no related ACL Unsecured personal $ — $ — Residential mortgages 3,383 2,735 Secured consumer 4,774 3,858 Other consumer — — Total nonaccrual consumer loans held for investment 8,157 6,593 Equipment finance — — Commercial real estate 2,420 1,653 Commercial and industrial 1,360 1,063 Total nonaccrual commercial loans and leases held for investment 3,780 2,716 Total nonaccrual loans and leases held for investment $ 11,937 $ 9,309 (1) There were no loans and leases that were 90 days or more past due and accruing as of March 31, 2021. Troubled Debt Restructurings TDRs are loan modifications where concessions were granted to borrowers experiencing financial difficulties. The Company may offer several types of assistance to aid customers, including payment extensions and reduction or forgiveness in amounts of principal and interest due. TDRs identified by Radius prior to the acquisition are not disclosed because all such loans were recorded at fair value and a new accounting basis was established as of the acquisition date. Subsequent modifications, if any, are evaluated and recorded as TDRs in accordance with LendingClub’s accounting policies. See “ Note 1. Summary of Significant Accounting Policies ” for additional information. Collateral-Dependent Assets Certain loans on non-accrual status and certain TDR loans may be considered collateral-dependent loans if the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially through sale or operation of the collateral. Expected credit losses for the Company’s collateral-dependent loans are calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. See “ Note 1. Summary of Significant Accounting Policies ” for further detail. Purchased Financial Assets with Credit Deterioration Acquired loans are recorded at their fair value, which may result in the recognition of a discount or premium. In addition, the purchase price of PCD loans is grossed-up upon acquisition for the initial estimate of expected credit losses. For acquired PCD loans for which all or a portion of the balance was previously written off, or was required to be written off under LendingClub’s charge-off policy upon acquisition, the expected credit loss included in the grossed-up loan balance was immediately charged off. Subsequent changes to the allowance for expected credit losses are recorded as additions to or reversals of credit losses on the Company’s Condensed Consolidated Statements of Operations. Acquired PCD loans during the first quarter of 2021 were as follows: Three Months Ended March 31, 2021 Purchase price $ 337,118 Allowance for expected credit losses (1) 30,378 Discount attributable to other factors 12,204 Par value $ 379,700 (1) For acquired PCD loans, an allowance of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, a CECL allowance of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million. |
Securitizations and Variable In
Securitizations and Variable Interest Entities | 3 Months Ended |
Mar. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Securitization 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 Condensed Consolidated Balance Sheets for its transactions with consolidated and unconsolidated VIEs at March 31, 2021 and December 31, 2020. Additionally, the assets and liabilities in the table below exclude intercompany balances that eliminate in consolidation: March 31, 2021 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 17,536 $ — $ 17,536 Securities available for sale at fair value — 122,707 122,707 Loans held for sale at fair value 83,926 — 83,926 Retail and certificate loans held for investment at fair value 36,277 — 36,277 Other loans held for investment at fair value 42,261 — 42,261 Other assets 936 27,701 28,637 Total assets $ 180,936 $ 150,408 $ 331,344 Liabilities Retail notes, certificates and secured borrowings at fair value $ 36,277 $ — $ 36,277 Payable on Structured Program borrowings 133,499 — 133,499 Other liabilities 522 — 522 Total liabilities 170,298 — 170,298 Total net assets $ 10,638 $ 150,408 $ 161,046 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 sale at fair value 98,190 — 98,190 Retail and certificate loans held for investment at fair value 52,620 — 52,620 Other loans held for investment at fair value 50,102 — 50,102 Other assets 1,270 32,865 34,135 Total assets $ 218,165 $ 174,891 $ 393,056 Liabilities Retail notes, certificates and secured borrowings at fair value $ 52,620 $ — $ 52,620 Payable on Structured Program borrowings 152,808 — 152,808 Other liabilities 729 — 729 Total liabilities 206,157 — 206,157 Total net assets $ 12,008 $ 174,891 $ 186,899 Consolidated VIEs The Company consolidates VIEs when it is deemed to be the primary beneficiary. See “ Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” in the Annual Report 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 established 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 within “Payable on Structured Program borrowings” in the Company’s Condensed Consolidated Balance Sheets. If subsequently the Company is not the primary beneficiary of the trust, the Company will deconsolidate the VIE. See “ Note 13. Short-term Borrowings and Long-term Debt ” for additional information. Warehouse Credit Facilities Prior to the acquisition of Radius, the Company established certain entities (deemed to be VIEs) to enter into warehouse credit facilities for the purpose of purchasing loans from LendingClub. In the fourth quarter of 2020, the Company fully repaid and terminated its credit facilities. The following tables present a summary of financial assets and liabilities from the Company’s involvement with consolidated VIEs at March 31, 2021 and December 31, 2020: March 31, 2021 Assets Liabilities Net Assets LC Trust $ 38,965 $ (36,554) $ 2,411 Consolidated trusts 141,971 (133,744) 8,227 Total consolidated VIEs $ 180,936 $ (170,298) $ 10,638 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 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 “ Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” in the Annual Report 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 March 31, 2021, 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 our investment in the Investment Fund. At March 31, 2021, the Company’s investment was $7.8 million, which is recognized in “Other assets” on the Company’s Condensed Consolidated Balance Sheets. The following tables summarize unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary at March 31, 2021 and December 31, 2020: March 31, 2021 Carrying Value Total VIE Assets Securities Available for Sale Other Assets Net Assets Unconsolidated Trusts $ 1,077,309 $ 51,273 $ 7,911 $ 59,184 Certificate Program 1,555,920 71,434 12,015 83,449 Investment Fund 35,369 — 7,775 7,775 Total unconsolidated VIEs $ 2,668,598 $ 122,707 $ 27,701 $ 150,408 March 31, 2021 Maximum Exposure to Loss Securities Available for Sale Other Assets Net Assets Unconsolidated Trusts $ 51,273 $ 7,911 $ 59,184 Certificate Program 71,434 12,015 83,449 Investment Fund — 7,775 7,775 Total unconsolidated VIEs $ 122,707 $ 27,701 $ 150,408 December 31, 2020 Carrying Value Total VIE Assets Securities Available for Sale Other Assets Net Assets Unconsolidated Trusts $ 1,267,611 $ 57,511 $ 9,654 $ 67,165 Certificate Program 1,931,429 84,515 15,436 99,951 Investment Fund 34,376 — 7,775 7,775 Total unconsolidated VIEs $ 3,233,416 $ 142,026 $ 32,865 $ 174,891 December 31, 2020 Maximum Exposure to Loss Securities Available for Sale Other Assets Total Exposure Unconsolidated Trusts $ 57,511 $ 9,654 $ 67,165 Certificate Program 84,515 15,436 99,951 Investment Fund — 7,775 7,775 Total unconsolidated VIEs $ 142,026 $ 32,865 $ 174,891 “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” and “Other Assets” are the balances in the Company’s Condensed 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 financial statements for the first quarters of 2021 and 2020: Three Months Ended March 31, 2021 2020 Unconsolidated Trusts Unconsolidated Certificate Program Unconsolidated Trusts Unconsolidated Certificate Program Principal derecognized from loans securitized or sold $ — $ — $ 255,203 $ 637,637 Net gains (losses) recognized from loans securitized or sold $ — $ — $ (20) $ 5,596 Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement (1) $ — $ — $ 12,707 $ 31,423 Cash proceeds from loans securitized or sold $ — $ — $ 237,764 $ 598,515 Cash proceeds from servicing and other administrative fees on loans securitized or sold $ 3,017 $ 4,918 $ 5,121 $ 6,992 Cash proceeds for interest received on senior securities and subordinated securities $ 608 $ 1,258 $ 1,040 $ 2,273 (1) For Structured Program transactions, the Company retained asset-backed senior securities of $23.0 million, CLUB Certificate asset-backed securities of $18.3 million, and asset-backed subordinated securities of $2.9 million for the first quarter of 2020. The Company did not retain asset-backed securities related to Structured Program transactions during the first quarter of 2021. Off-Balance Sheet Loans Off-balance sheet loans pursuant to unconsolidated VIE’s primarily relate to Structured Program transactions for which the Company has some form of continuing involvement, including as servicer. 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 March 31, 2021, the aggregate unpaid principal balance of the off-balance sheet loans related to Structured Program transactions was $2.6 billion, of which $66.0 million was attributable to off-balance sheet loans that were 31 days or more past due. As of December 31, 2020, the aggregate unpaid principal balance of the off-balance sheet loans related 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. 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 | 3 Months Ended |
Mar. 31, 2021 | |
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 “ Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies ” in the Annual Report. The Company records certain assets and liabilities at fair value as listed in the following tables. Financial Instruments Recorded at Fair Value The following tables present the fair value hierarchy for assets and liabilities measured at fair value at March 31, 2021 and December 31, 2020: March 31, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 166,623 166,623 Retail and certificate loans held for investment at fair value — — 507,157 507,157 Other loans held for investment at fair value — — 42,485 42,485 Securities available for sale: Asset-backed senior securities and subordinated securities — 62,953 17,787 80,740 U.S. agency residential mortgage-backed securities — 70,730 — 70,730 CLUB Certificate asset-backed securities — — 41,967 41,967 Other asset-backed securities — 29,800 — 29,800 Commercial mortgage-backed securities — 28,440 — 28,440 U.S. agency securities — 19,284 — 19,284 Municipal securities — 3,258 — 3,258 Other securities — 200 — 200 Total securities available for sale — 214,665 59,754 274,419 Servicing assets — — 54,113 54,113 Other assets — 4,235 5,202 9,437 Total assets $ — $ 218,900 $ 835,334 $ 1,054,234 Liabilities: Retail notes, certificates and secured borrowings $ — $ — $ 507,203 $ 507,203 Payable on Structured Program borrowings — — 133,499 133,499 Other liabilities — — 22,276 22,276 Total liabilities $ — $ — $ 662,978 $ 662,978 December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 121,902 $ 121,902 Retail and certificate loans held for investment at fair value — — 636,686 636,686 Other loans held for investment at fair value — — 49,954 49,954 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: Retail notes, certificates and secured borrowings $ — $ — $ 636,774 $ 636,774 Payable on Structured Program borrowings — — 152,808 152,808 Other liabilities — — 12,270 12,270 Total liabilities $ — $ — $ 801,852 $ 801,852 Changes in the fair value of financial liabilities presented in the tables above, caused by a change in the Company’s risk are reported in other comprehensive income (OCI). For the first quarters of 2021 and 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 financial instruments listed in the tables above 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. The Company did not transfer any assets or liabilities in or out of Level 3 during the first quarters of 2021 or 2020. Fair valuation adjustments are recorded through earnings related to Level 3 instruments for the first quarters of 2021 and 2020. 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 Sale at Fair Value Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 loans held for sale at fair value at March 31, 2021 and December 31, 2020: Loans Held for Sale at Fair Value March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 5.2 % 15.5 % 8.3 % 7.6 % 16.0 % 8.5 % Net cumulative expected loss rates (1) 2.5 % 22.8 % 6.6 % 5.0 % 28.0 % 8.2 % Cumulative expected prepayment rates (1) 28.2 % 46.2 % 31.9 % 27.2 % 41.2 % 30.4 % (1) Expressed as a percentage of the original principal balance of the loan. Significant Recurring Level 3 Fair Value Input Sensitivity The sensitivity of loans held for sale at fair value to adverse changes in key assumptions as of March 31, 2021 and December 31, 2020, are as follows: March 31, 2021 December 31, 2020 Loans held for sale at fair value $ 166,623 $ 121,902 Expected weighted-average life (in years) 1.2 1.1 Discount rates 100 basis point increase $ (1,706) $ (1,151) 200 basis point increase $ (3,382) $ (2,282) Expected credit loss rates on underlying loans 10% adverse change $ (1,486) $ (1,099) 20% adverse change $ (3,003) $ (2,220) Expected prepayment rates 10% adverse change $ (514) $ (273) 20% adverse change $ (1,027) $ (556) Fair Value Reconciliation The following tables present additional information about Level 3 loans held for sale at fair value on a recurring basis for the first quarters of 2021 and 2020: Loans Held for Sale at Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2020 $ 132,600 $ (10,698) $ 121,902 Originations and purchases 941,945 (1,629) 940,316 Transfers (to) from loans held for investment and/or loans held for sale (63) — (63) Sales (873,672) 7,037 (866,635) Principal payments and retirements (22,821) — (22,821) Charge-offs, net of recoveries (3,859) 3,186 (673) Change in fair value recorded in earnings — (5,403) (5,403) Balance at March 31, 2021 $ 174,130 $ (7,507) $ 166,623 Loans Held for Sale at Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2019 $ 747,394 $ (25,039) $ 722,355 Purchases 1,379,094 — 1,379,094 Transfers (to) from loans held for investment and/or loans held for sale (43,123) — (43,123) Sales (1,171,407) 19,909 (1,151,498) Principal payments and retirements (70,103) — (70,103) Charge-offs, net of recoveries (6,298) 5,779 (519) Change in fair value recorded in earnings — (94,502) (94,502) Balance at March 31, 2020 $ 835,557 $ (93,853) $ 741,704 Retail and Certificate Loans Held for Investment at Fair Value and Retail 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 retail and certificate loans held for investment at fair value and the related retail notes, certificates and secured borrowings at March 31, 2021 and December 31, 2020: Retail and Certificate Loans Held for Investment at Fair Value, March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 7.6 % 15.2 % 9.4 % 7.6 % 15.0 % 9.4 % Net cumulative expected loss rates (1) 3.7 % 20.6 % 9.7 % 4.3 % 28.1 % 11.2 % Cumulative expected prepayment rates (1) 28.3 % 36.3 % 31.5 % 27.3 % 35.7 % 30.4 % (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 March 31, 2021 and December 31, 2020, the discounted cash flow methodology used to estimate the retail note, certificate and secured borrowings’ fair values used the same projected net cash flows as their related retail loans. As demonstrated by the following tables, the fair value adjustments for retail and certificate loans held for investment were largely offset by the corresponding fair value adjustments due to the payment dependent design of the retail notes, certificates and secured borrowings. Fair Value Reconciliation The following tables present additional information about Level 3 retail and certificate loans held for investment at fair value and retail notes, certificates and secured borrowings measured at fair value on a recurring basis for the first quarters of 2021 and 2020: Retail and Certificate Loans Held for Retail Notes, Certificates and Secured Borrowings Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2020 $ 679,903 $ (43,217) $ 636,686 $ 679,903 $ (43,129) $ 636,774 Principal payments and retirements (131,020) — (131,020) (131,020) — (131,020) Charge-offs, net of recoveries (12,008) 4,740 (7,268) (12,008) 4,652 (7,356) Change in fair value recorded in earnings — 8,759 8,759 — 8,805 8,805 Balance at March 31, 2021 $ 536,875 $ (29,718) $ 507,157 $ 536,875 $ (29,672) $ 507,203 Retail and Certificate Loans Held for Retail Notes, Certificates and Secured Borrowings Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2019 $ 1,148,888 $ (69,573) $ 1,079,315 $ 1,148,888 $ (67,422) $ 1,081,466 Purchases 104,620 — 104,620 — — — Transfers (to) from retail and certificate loans held for investment and/or loans held for sale (17,478) — (17,478) — — — Issuances — — — 104,620 — 104,620 Principal payments and retirements (215,748) — (215,748) (233,226) — (233,226) Charge-offs, net of recoveries (29,620) 17,311 (12,309) (29,620) 16,431 (13,189) Change in fair value recorded in earnings — (52,987) (52,987) — (52,831) (52,831) Balance at March 31, 2020 $ 990,662 $ (105,249) $ 885,413 $ 990,662 $ (103,822) $ 886,840 Other Loans Held for Investment at Fair Value Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 other loans held for investment at fair value at March 31, 2021 and December 31, 2020: Other Loans Held for Investment at Fair Value March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 5.2 % 15.4 % 8.8 % 7.5 % 16.1 % 8.8 % Net cumulative expected loss rates (1) 2.5 % 20.2 % 8.3 % 5.0 % 26.3 % 10.3 % Cumulative expected prepayment rates (1) 27.7 % 42.6 % 31.8 % 26.8 % 39.7 % 30.7 % (1) Expressed as a percentage of the original principal balance of the loan. Significant Recurring Level 3 Fair Value Input Sensitivity The sensitivity of other loans held for investment at fair value to adverse changes in key assumptions as of March 31, 2021 and December 31, 2020, are as follows: March 31, 2021 December 31, 2020 Other loans held for investment at fair value $ 42,485 $ 49,954 Expected weighted-average life (in years) 1.0 1.1 Discount rates 100 basis point increase $ (428) $ (541) 200 basis point increase $ (849) $ (1,073) Expected credit loss rates on underlying loans 10% adverse change $ (447) $ (640) 20% adverse change $ (906) $ (1,295) Expected prepayment rates 10% adverse change $ (164) $ (181) 20% adverse change $ (342) $ (368) Fair Value Reconciliation The following tables present additional information about Level 3 other loans held for investment at fair value on a recurring basis for the first quarters of 2021 and 2020: Other Loans Held for Investment at Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2020 $ 56,388 $ (6,434) $ 49,954 Purchases 116 (98) 18 Principal payments and retirements (8,324) — (8,324) Charge-offs, net of recoveries (1,025) 574 (451) Change in fair value recorded in earnings — 1,288 1,288 Balance at March 31, 2021 $ 47,155 $ (4,670) $ 42,485 Other Loans Held for Investment at Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2019 $ 47,042 $ (3,349) $ 43,693 Purchases 727 (693) 34 Transfers (to) from other loans held for investment and/or loans held for sale 43,188 — 43,188 Principal payments and retirements (5,684) — (5,684) Charge-offs, net of recoveries (1,623) 134 (1,489) Change in fair value recorded in earnings — (8,739) (8,739) Balance at March 31, 2020 $ 83,650 $ (12,647) $ 71,003 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 March 31, 2021 and December 31, 2020: Asset-Backed Securities Related to Structured Program Transactions March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 2.2 % 25.1 % 8.7 % 2.2 % 25.1 % 8.4 % Net cumulative expected loss rates (1) 5.1 % 23.8 % 14.9 % 5.4 % 28.9 % 18.8 % Cumulative expected prepayment rates (1) 10.1 % 31.8 % 26.9 % 6.3 % 30.5 % 24.8 % (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 March 31, 2021 and December 31, 2020: March 31, 2021 Asset-Backed Securities Related to Senior Securities Subordinated Securities CLUB Certificates Fair value of interests held $ 62,953 $ 17,787 $ 41,967 Expected weighted-average life (in years) 0.8 1.3 0.9 Discount rates 100 basis point increase $ (434) $ (164) $ (324) 200 basis point increase $ (859) $ (350) $ (642) Expected credit loss rates on underlying loans 10% adverse change $ — $ (1,286) $ (1,019) 20% adverse change $ — $ (2,630) $ (2,089) Expected prepayment rates 10% adverse change $ — $ (712) $ (561) 20% adverse change $ — $ (1,666) $ (1,168) December 31, 2020 Asset-Backed Securities Related to Senior Securities 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) 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 first quarters of 2021 and 2020: Three Months Ended 2021 2020 Fair value at beginning of period $ 66,654 $ 110,796 Additions 578 23,585 Cash received (14,194) (16,266) Change in unrealized gain (loss) 3,125 (5,256) Accrued interest 1,121 1,632 Reversal of (impairment on) securities available for sale 2,470 (10,980) Fair value at end of period $ 59,754 $ 103,511 S ervicing 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 March 31, 2021 and December 31, 2020: Servicing Assets March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 4.8 % 16.4 % 9.9 % 4.8 % 16.4 % 9.9 % Net cumulative expected loss rates (1) 2.6 % 26.9 % 10.7 % 4.5 % 26.3 % 12.5 % Cumulative expected prepayment rates (1) 28.1 % 46.2 % 32.7 % 27.0 % 38.9 % 31.2 % Total market servicing rates (% per annum on outstanding principal balance) (2) 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % (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 March 31, 2021 and December 31, 2020: Servicing Assets March 31, 2021 December 31, 2020 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Servicing rate increase by 0.10% $ (7,757) $ (7,379) Servicing rate decrease by 0.10% $ 7,757 $ 7,379 The following table presents the fair value sensitivity of servicing assets to adverse changes in key assumptions as of March 31, 2021 and December 31, 2020: Servicing Assets March 31, 2021 December 31, 2020 Fair value of servicing assets $ 54,113 $ 56,347 Discount rates 100 basis point increase $ (437) $ (455) 200 basis point increase $ (875) $ (911) Expected loss rates 10% adverse change $ (598) $ (346) 20% adverse change $ (1,196) $ (691) Expected prepayment rates 10% adverse change $ (2,277) $ (1,596) 20% adverse change $ (4,554) $ (3,192) Fair Value Reconciliation The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis for the first quarters of 2021 and 2020: Three Months Ended 2021 2020 Fair value at beginning of period $ 56,347 $ 89,680 Issuances (1) 7,235 17,581 Change in fair value, included in Marketplace revenue (11,837) (9,608) Other net changes included in Deferred revenue 2,368 (4,828) Fair value at end of period $ 54,113 $ 92,825 (1) Represents the gains or losses on sales of the related loans. 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 at March 31, 2021 and December 31, 2020: March 31, 2021 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans and leases held for investment, net $ 2,079,300 $ — $ — $ 2,126,840 $ 2,126,840 Servicing assets 2,859 — — 2,921 2,921 Other assets — — 9,023 — 9,023 Total assets $ 2,082,159 $ — $ 9,023 $ 2,129,761 $ 2,138,784 Liabilities: Deposits $ 98,547 $ — $ — $ 98,547 $ 98,547 Short-term borrowings 90,091 — 54,088 36,003 90,091 Advances from PPPLF 370,086 — — 370,086 370,086 Other long-term debt 18,572 — — 18,572 18,572 Other liabilities 50,755 — 35,063 15,692 50,755 Total liabilities $ 628,051 $ — $ 89,151 $ 538,900 $ 628,051 December 31, 2020 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Total cash and cash equivalents (1) $ 524,963 $ — $ 524,963 $ — $ 524,963 Restricted cash (1) 103,522 — 103,522 — 103,522 Other assets 914 — 914 — 914 Total assets $ 629,399 $ — $ 629,399 $ — $ 629,399 Liabilities: Short-term borrowings $ 104,989 $ — $ 65,121 $ 39,868 $ 104,989 Other liabilities 57,536 — 43,984 13,552 57,536 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. |
Property, Equipment and Softwar
Property, Equipment and Software, net | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, Net | Property, Equipment and Software, Net Property, equipment and software, net, consist of the following: March 31, 2021 December 31, 2020 Internally developed software (1) $ 108,414 $ 101,953 Leasehold improvements 36,387 35,140 Computer equipment 27,896 27,030 Purchased software 19,327 19,004 Furniture and fixtures 8,252 8,203 Construction in progress 3,046 2,761 Total property, equipment and software 203,322 194,091 Accumulated depreciation and amortization (108,009) (97,450) Total property, equipment and software, net $ 95,313 $ 96,641 (1) Includes $14.7 million and $13.9 million of development in progress as of March 31, 2021 and December 31, 2020, respectively. Depreciation and amortization expense on property, equipment and software was $10.2 million and $11.8 million for the first quarters of 2021 and 2020, respectively. The Company recorded impairment expense on its internally developed software of $0.3 million and $0.2 million for the first quarters of 2021 and 2020, respectively. The Company records impairment expense on its internally developed software in “Depreciation and amortization” expense in the Condensed Consolidated Statements of Operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill In connection with its acquisition of Radius in the first quarter of 2021, the Company recognized Goodwill of $75.7 million, which is fully allocated to the LendingClub Bank operating segment. Goodwill is not amortized, but will be subject to annual impairment tests. See “ Note 2. Business Acquisition. ” Intangible Assets Intangible assets consist of customer relationships, which include the core deposit intangible acquired during the first quarter of 2021 as part of the acquisition of Radius. Intangible assets, net of accumulated amortization, are included in “Other assets” on the Company’s Condensed Consolidated Balance Sheets. The gross and net carrying values and accumulated amortization are as follows for the periods presented: March 31, 2021 December 31, 2020 Gross carrying value $ 54,500 $ 39,500 Accumulated amortization (29,280) (28,073) Net carrying value $ 25,220 $ 11,427 The customer relationship intangible assets are amortized on an accelerated basis from ten The expected future amortization expense for intangible assets as of March 31, 2021, is as follows: 2021 $ 4,039 2022 4,847 2023 4,198 2024 3,549 2025 2,901 Thereafter 5,686 Total $ 25,220 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: March 31, 2021 December 31, 2020 Operating lease assets $ 84,931 $ 74,037 Servicing assets (1) 56,972 56,347 Bank-owned life insurance 31,623 — Intangible assets, net (2) 25,220 11,427 Prepaid expenses 17,163 16,455 Accounts receivable 14,194 10,243 Other investments 13,871 8,275 Accrued interest receivable 13,792 5,205 Other 21,429 5,410 Total other assets $ 279,195 $ 187,399 (1) As of March 31, 2021 and December 31, 2020, loans underlying loan servicing rights had a total outstanding principal balance of $9.4 billion and $10.1 billion, respectively. (2) See “ Note 10. Goodwill and Intangible Assets ” for additional detail. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Deposits | Deposits Deposits consist of the following: March 31, 2021 Interest-bearing deposits: Checking accounts $ 1,653,254 Savings and money market accounts 478,026 Certificates of deposit (1) 98,547 Total $ 2,229,827 Noninterest-bearing deposits 143,610 Total deposits $ 2,373,437 (1) Includes $93.4 million in denominations of $100 thousand or more and $33.8 million in denominations in excess of $250 thousand federal insurance limits. Total certificates of deposit at March 31, 2021 are scheduled to mature as follows: 2021 $ 69,001 2022 25,062 2023 3,861 2024 57 2025 231 Thereafter 335 Total certificates of deposit $ 98,547 |
Short-term Borrowings and Long-
Short-term Borrowings and Long-term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Long-term Debt | Short-term Borrowings and Long-term Debt Short-term Borrowings: 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. As of March 31, 2021 and December 31, 2020, the Company had $90.1 million and $105.0 million in aggregate debt outstanding under its repurchase agreements, respectively, which is primarily amortized over time through regular principal and interest payments collected from the pledged securities. At March 31, 2021, a majority of the Company’s repurchase agreements have contractual repurchase dates ranging from September 2022 to March 2028. These 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 0.8 to 1.3 years. At March 31, 2021 and December 31, 2020, these repurchase agreements bore interest rates ranging from 3.08% and 6.33% and 3.05% to 4.00%, 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. Underlying securities retained and pledged as collateral under repurchase agreements were $114.9 million and $133.5 million, respectively, at March 31, 2021 and December 31, 2020. Other Short-term Borrowings The Company had a Federal Funds unsecured borrowing facility of $7.5 million at March 31, 2021. As of March 31, 2021 there were no borrowings outstanding under this line. The interest rate for the Federal Funds is determined by the lender based on market conditions per transaction. Long-term Debt: Advances from PPPLF As of March 31, 2021, outstanding PPPLF borrowings were $370.1 million. The borrowings are collateralized by the SBA PPP loans originated by the Company. The maturity date of the PPPLF borrowings matches the maturity date of the SBA PPP loans. When loans are forgiven by the SBA, the corresponding PPPLF advance is paid by the Company. The interest rate on the PPPLF borrowings is fixed at 0.35%. No further advances may be made without authorization from the Board of Governs of the Federal Reserve System (FRB). Retail Notes, Certificates, and Secured Borrowings The Company issued member payment dependent notes (Retail Notes) and the LC Trust issued certificates as a means to allow investors to invest in the corresponding loans. Prior to the acquisition of Radius, investors were able to purchase Retail Notes, which were securities for which cash flows to investors were dependent upon principal and interest payments made by borrowers of certain unsecured personal loans. As of December 31, 2020, LendingClub ceased offering and selling Retail Notes. The total balance of outstanding Retail Notes will continue to decline as underlying borrower payments are made. The Company does not assume principal or interest rate risk on loans that were funded by Retail Notes because loan balances, interest rates and maturities were matched and offset by an equal balance of notes with the exact same interest rates and maturities. See “ Note 8. Fair Value of Assets and Liabilities ” for information about the outstanding principal balance and net fair value adjustments for retail notes, certificates, and secured borrowings. The following table provides the balances of retail notes, certificates and secured borrowings at fair value at the end of the periods indicated: March 31, 2021 December 31, 2020 Retail notes $ 470,720 $ 583,219 Certificates 36,277 52,620 Secured borrowings (1) 206 935 Total retail notes, certificates and secured borrowings $ 507,203 $ 636,774 (1) At March 31, 2021 and December 31, 2020, a fair value of $0.2 million and $0.8 million included in “Retail and certificate loans held for investment at fair value” was pledged as collateral for secured borrowings, respectively. Payable on Structured Program Borrowings The Company consolidated certain sponsored Structured Program transactions through master trusts comprised of unsecured personal whole loans. The Company is the primary beneficiary of the trusts, which are consolidated. As of March 31, 2021 and December 31, 2020, the certificate participations and securities held by third-party investors of $133.5 million and $152.8 million are included in “Payable on Structured Program borrowings” in the Condensed Consolidated Balance Sheets and were secured by “Other loans held for investment at fair value” and “Loans held for sale at fair value” of $126.2 million and $148.3 million and restricted cash of $15.2 million and $13.5 million included in the Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020, respectively. Other Long-term Debt With the acquisition of Radius, the Company assumed subordinated notes of $15.8 million, at a 6.5% fixed to floating rate, due June 30, 2027. Fixed interest payments are due semiannually in arrears on June 30 and December 30 through June 30, 2022. Subsequent to June 30, 2022, the rate resets quarterly at a rate equal to 3-month LIBOR plus 4.64%. The subordinated notes are junior in right to the repayment in full of all existing claims of creditors and depositors of the Company. The subordinated notes may be redeemed, in whole or in part, at par plus accrued unpaid interest after June 27, 2022 at the option of the Company. The carrying amount of the subordinated notes was $15.3 million, including a purchase premium of $0.4 million as of March 31, 2021. In addition, the Company assumed advances from the Federal Home Loan Bank of Boston (FHLBB) of $2.8 million as of March 31, 2021, which were subsequently fully paid. |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities consist of the following: March 31, 2021 December 31, 2020 Operating lease liabilities $ 104,220 $ 94,538 Payable to investors 35,063 40,286 Accrued expenses 26,176 14,382 Contingent liabilities (1) 21,988 21,592 Accrued compensation 16,319 28,805 Transaction fee refund reserve 15,692 14,119 Accounts payable 10,742 3,698 Deferred revenue 7,615 4,923 Loan trailing fee liability, at fair value 6,499 7,494 Other 20,752 14,714 Total other liabilities $ 265,066 $ 244,551 (1) See “ Note 18. Commitments and Contingencies ” for further information. |
Employee Incentive Plans
Employee Incentive Plans | 3 Months Ended |
Mar. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Incentive Plans | Employee Incentive Plans The Company’s 2014 Equity Incentive Plan (EIP) provides for granting awards, including restricted stock units (RSUs), performance-based restricted stock units (PBRSUs) and stock options to employees, officers and directors. Stock-based Compensation Stock-based compensation expense, included in “Compensation and benefits” expense on the Company’s Condensed Consolidated Statements of Operations, was as follows for the periods presented: Three Months Ended 2021 2020 RSUs and PBRSUs $ 14,743 $ 17,706 Stock options (1) 450 423 Total stock-based compensation expense $ 15,193 $ 18,129 (1) In the first quarter of 2021, includes common stock issued and consideration related to share-based payments in connection with the acquisition of Radius. See “ Note 2. Business Acquisition ” for additional information. The Company capitalized $1.0 million and $1.6 million of stock-based compensation expense associated with developing software for internal use during the first quarters of 2021 and 2020, respectively. Restricted Stock Units The following table summarizes the activities for the Company’s RSUs during the first quarter of 2021: Number Weighted- Unvested at December 31, 2020 11,395,112 $ 11.26 Granted 4,415,391 $ 11.15 Vested (1,011,815) $ 13.57 Forfeited/expired (496,946) $ 12.21 Unvested at March 31, 2021 14,301,742 $ 11.03 During the first quarter of 2021, the Company granted 4,415,391 RSUs with an aggregate fair value of $49.2 million. As of March 31, 2021, there was $148.7 million of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over the next 2.7 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/or 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 first quarter of 2021: Number Weighted- Unvested at December 31, 2020 1,441,311 $ 5.31 Granted 568,285 $ 22.54 Vested (20,285) $ 22.59 Unvested at March 31, 2021 1,989,311 $ 10.12 During the first quarters of 2021 and 2020, the Company recognized $1.2 million and $0.8 million in stock-based compensation expense related to PBRSUs, respectively. As of March 31, 2021, there was $17.2 million of unrecognized compensation cost related to unvested PBRSUs, which is expected to be recognized over the next 2.1 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the first quarter of 2021, the Company recorded an income tax benefit of $2.8 million primarily related to changes in the deferred tax asset valuation allowance resulting from a deferred tax liability assumed with the acquisition of Radius. For the first quarter of 2020, the Company recorded an income tax expense of $319 thousand primarily attributable to the tax effects of other comprehensive income associated with the Company’s available for sale portfolio. 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. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessor Arrangements Upon the acquisition of Radius, the Company assumed lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the first quarter of 2021, interest earned on Equipment Finance was $1.9 million and is included in “Interest and fees on loans and leases held for investment” in the Company’s Condensed Consolidated Statements of Operations. The components of Equipment Finance assets are as follows: March 31, 2021 Lease receivables $ 111,571 Unguaranteed residual asset values 36,646 Unearned income (2,455) Deferred fees 123 Total (1) $ 145,885 (1) See “ Note 6. Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses ” for additional information. Future minimum lease payments based on maturity of the Company’s lessor arrangements at March 31, 2021 were as follows: 2021 $ 32,252 2022 37,073 2023 27,303 2024 17,568 2025 9,393 Thereafter 8,772 Total lease payments $ 132,361 Discount effect (20,790) Present value of future minimum lease payments $ 111,571 The Company did not have any lessor arrangements with related parties or any deferred selling profits as of March 31, 2021. Lessee Arrangements 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. In addition, the Company assumed operating leases in Boston, Massachusetts upon the acquisition of Radius. As of March 31, 2021, the lease agreements have remaining lease terms ranging from approximately one year to ten 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 approximately one year. As of March 31, 2021, 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 right-of-use (ROU) assets and related liabilities recorded for the leases assumed upon acquisition were both approximately $5.0 million. The ROU assets were adjusted to reflect favorable terms of the lease, when compared to market terms, which resulted in an increase to the acquired ROU of approximately $1.7 million. Lease liabilities assumed were measured based on the net present value of remaining future lease payments on the date of acquisition, with consideration given for options to extend or renew each lease. Remaining future lease payments were discounted at the Company’s estimated incremental borrowing rate on the date of acquisition. The Company reviewed operating lease ROU assets for impairment. For the first quarter of 2021, the Company recognized impairment expense of $1.0 million, net, on operating lease assets, included in “Occupancy expense” on the Company’s Condensed Consolidated Statement of Operations. No impairment expense was recorded during the first quarter of 2020. Balance sheet information as of March 31, 2021 and December 31, 2020 related to leases was as follows: ROU Assets and Lease Liabilities March 31, 2021 December 31, 2020 Operating lease assets $ 84,931 $ 74,037 Operating lease liabilities (1) $ 104,220 $ 94,538 (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 first quarters of 2021 and 2020 were as follows: Three Months Ended Net Lease Costs Income Statement Classification 2021 2020 Operating lease costs (1) Occupancy $ (4,977) $ (4,620) Sublease revenue Other non-interest income 1,537 1,534 Net lease costs $ (3,440) $ (3,086) (1) Includes variable lease costs of $0.1 million and $0.4 million for the first quarters of 2021 and 2020, respectively. Supplemental cash flow information related to the Company’s operating leases for the first quarters of 2021 and 2020 was as follows: Three Months Ended 2021 2020 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ 12,914 $ — (1) Represents non-cash activity and, accordingly, is not reflected in the Condensed Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of March 31, 2021 were as follows: Operating Lease Sublease Net 2021 $ 16,148 $ (5,079) $ 11,069 2022 15,947 (2,918) 13,029 2023 12,465 — 12,465 2024 12,810 — 12,810 2025 13,163 — 13,163 Thereafter 62,350 — 62,350 Total lease payments $ 132,883 $ (7,997) $ 124,886 Discount effect 28,663 Present value of future minimum lease payments $ 104,220 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 March 31, 2021 Weighted-average remaining lease term (in years) 8.69 Weighted-average discount rate 5.40 % |
Leases | Leases Lessor Arrangements Upon the acquisition of Radius, the Company assumed lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the first quarter of 2021, interest earned on Equipment Finance was $1.9 million and is included in “Interest and fees on loans and leases held for investment” in the Company’s Condensed Consolidated Statements of Operations. The components of Equipment Finance assets are as follows: March 31, 2021 Lease receivables $ 111,571 Unguaranteed residual asset values 36,646 Unearned income (2,455) Deferred fees 123 Total (1) $ 145,885 (1) See “ Note 6. Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses ” for additional information. Future minimum lease payments based on maturity of the Company’s lessor arrangements at March 31, 2021 were as follows: 2021 $ 32,252 2022 37,073 2023 27,303 2024 17,568 2025 9,393 Thereafter 8,772 Total lease payments $ 132,361 Discount effect (20,790) Present value of future minimum lease payments $ 111,571 The Company did not have any lessor arrangements with related parties or any deferred selling profits as of March 31, 2021. Lessee Arrangements 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. In addition, the Company assumed operating leases in Boston, Massachusetts upon the acquisition of Radius. As of March 31, 2021, the lease agreements have remaining lease terms ranging from approximately one year to ten 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 approximately one year. As of March 31, 2021, 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 right-of-use (ROU) assets and related liabilities recorded for the leases assumed upon acquisition were both approximately $5.0 million. The ROU assets were adjusted to reflect favorable terms of the lease, when compared to market terms, which resulted in an increase to the acquired ROU of approximately $1.7 million. Lease liabilities assumed were measured based on the net present value of remaining future lease payments on the date of acquisition, with consideration given for options to extend or renew each lease. Remaining future lease payments were discounted at the Company’s estimated incremental borrowing rate on the date of acquisition. The Company reviewed operating lease ROU assets for impairment. For the first quarter of 2021, the Company recognized impairment expense of $1.0 million, net, on operating lease assets, included in “Occupancy expense” on the Company’s Condensed Consolidated Statement of Operations. No impairment expense was recorded during the first quarter of 2020. Balance sheet information as of March 31, 2021 and December 31, 2020 related to leases was as follows: ROU Assets and Lease Liabilities March 31, 2021 December 31, 2020 Operating lease assets $ 84,931 $ 74,037 Operating lease liabilities (1) $ 104,220 $ 94,538 (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 first quarters of 2021 and 2020 were as follows: Three Months Ended Net Lease Costs Income Statement Classification 2021 2020 Operating lease costs (1) Occupancy $ (4,977) $ (4,620) Sublease revenue Other non-interest income 1,537 1,534 Net lease costs $ (3,440) $ (3,086) (1) Includes variable lease costs of $0.1 million and $0.4 million for the first quarters of 2021 and 2020, respectively. Supplemental cash flow information related to the Company’s operating leases for the first quarters of 2021 and 2020 was as follows: Three Months Ended 2021 2020 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ 12,914 $ — (1) Represents non-cash activity and, accordingly, is not reflected in the Condensed Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of March 31, 2021 were as follows: Operating Lease Sublease Net 2021 $ 16,148 $ (5,079) $ 11,069 2022 15,947 (2,918) 13,029 2023 12,465 — 12,465 2024 12,810 — 12,810 2025 13,163 — 13,163 Thereafter 62,350 — 62,350 Total lease payments $ 132,883 $ (7,997) $ 124,886 Discount effect 28,663 Present value of future minimum lease payments $ 104,220 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 March 31, 2021 Weighted-average remaining lease term (in years) 8.69 Weighted-average discount rate 5.40 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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 17. Leases. ” Loan Purchase Obligation Prior to the acquisition of Radius, 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 was committed to purchase any loans that have been fully approved at par plus accrued interest, at the conclusion of the two an outstanding principal balance of $13.8 million at par. The Company was not committed to purchase any such loans as of March 31, 2021 as it now originates loans and no longer has a loan account program with WebBank. 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 agreed to repurchase loans if representations and warranties made with respect to such loans were breached under certain circumstances. In the case of certain securitization transactions, the Company also agreed to repurchase or substitute loans for which a borrower failed 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 performed 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 did not meet the investor’s investment criteria at the time of issuance, or were transferred to the investor as a result of a system error by the Company, the Company repurchased such loans or interests therein at par. As a result of the loan repurchase obligations described above, the Company repurchased $0.2 million and $1.1 million in loans or interests therein during the first quarters of 2021 and 2020, respectively. Purchase Commitments 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 March 31, 2021 and December 31, 2020, 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 Condensed Consolidated Balance Sheets. During the first quarters of 2021 and 2020, the Company was required to purchase $7.1 million and $13.2 million of loans facilitated by the Company or Springstone Financial LLC (a previously held wholly-owned subsidiary of LendingClub), respectively. These purchased loans are held on the Company’s Condensed Consolidated Balance Sheets and have a fair value of $9.2 million and $4.5 million as of March 31, 2021 and December 31, 2020, respectively. Unfunded Loan Commitments Unfunded commitments and unused lines of credit at their contractual amounts were as follows: March 31, 2021 Fixed Variable Total Commitments to extend credit $ — $ 57,853 $ 57,853 Lines of credit $ 3,338 $ 37,129 $ 40,467 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 impact of the Supreme Court decision could impact our case which is why the trial was stayed pending the Supreme Court decision. On April 22, 2021, the Supreme Court ruled in favor of AMG Capital Management ordering that the FTC does not currently have the authority to obtain equitable monetary relief under the statute that is also applicable in our matter with the FTC . The Court in our case will need to apply the Supreme Court’s order. 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 Lawsuit 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. 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 filed a motion to dismiss the operative complaint in the case, which was granted by the Court. The plaintiff has now appealed this ruling. The timing of a ruling in this appeal is uncertain. No assurances can be given as to the timing, outcome or consequences of this matter. 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. The California Supreme Court has issued a decision in a case involving the California Invasion of Privacy Act which the Court in our matter will need to apply. No assurances can be given as to the timing, outcome or consequences of this matter. 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 have a hearing with the Court in May 2021 to 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 $22.0 million and $21.6 million in accrued contingent liabilities at March 31, 2021 and December 31, 2020, respectively. In addition to the foregoing, the Company is subject to, and may continue to be subject to, legal proceedings and regulatory actions in the ordinary course of business. No assurance can be given as to the timing, outcome or consequences of any of these matters. |
Regulatory Requirements
Regulatory Requirements | 3 Months Ended |
Mar. 31, 2021 | |
Regulated Operations [Abstract] | |
Regulatory Requirements | Regulatory Requirements LendingClub, a bank holding company, and LendingClub Bank, a nationally chartered association, are subject to comprehensive supervision, examination and enforcement, and regulation by the FRB and the Office of the Comptroller of the Currency (OCC). The Company and the Bank are each subject to generally similar capital adequacy requirements adopted by the FRB and the OCC, respectively. These requirements establish required minimum ratios for Common Equity Tier 1 (CET1) risk-based capital, Tier 1 risk-based capital, total risk-based capital and a Tier 1 leverage ratio; set risk-weighting for assets and certain other items for purposes of the risk-based capital ratios; and define what qualifies as capital for purposes of meeting the capital requirements. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. The minimum capital requirements under the U.S. Basel III capital framework are: a CET1 risk-based capital ratio of 4.5%, a Tier 1 risk-based capital ratio of 6.0%, a total risk-based capital ratio of 8.0%, and a Tier 1 leverage ratio of 4.0%. Additionally, a capital conservation buffer (CCB) of 2.5% must be maintained above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases, and certain discretionary bonus payments. In addition to these guidelines, the regulators assess any particular institution’s capital adequacy based on numerous factors and may require a particular banking organization to maintain capital at levels higher than the generally applicable minimums prescribed under the U.S. Basel III capital framework. In this regard, and unless otherwise directed by the FRB and the OCC, we have made commitments for the Company and the Bank (for a minimum of three years following its formation) to maintain a CET1 risk-based capital ratio of 11%, a Tier 1 risk-based capital ratio above 11%, a total risk-based capital ratio above 13%, and a Tier 1 leverage ratio of 11%. The Federal Deposit Insurance Act provides for a system of “prompt corrective action” (PCA). The PCA regime provides for capitalization categories ranging from “well-capitalized” to “critically undercapitalized.” An institution’s PCA category is determined primarily by its regulatory capital ratios. The PCA requires remedial actions and imposes limitations that become increasingly stringent as an institution’s condition deteriorates and its PCA capitalization category declines. Among other things, institutions that are less than well-capitalized become subject to increasingly stringent restrictions on their ability to accept and/or rollover brokered deposits. At March 31, 2021, the Company’s and the Bank’s regulatory capital ratios exceeded the thresholds required to be regarded as well-capitalized institutions and met all capital adequacy requirements to which they are subject. There have been no events or conditions since March 31, 2021 that management believes would change the Company’s categorization. The following table presents the regulatory capital and ratios of the Company as of March 31, 2021 (in millions): LendingClub Required Minimum plus Required CCB for Non-Leverage Ratios March 31, 2021 Amount Ratio CET1 capital $ 578.1 26.0 % 7.0 % Tier 1 capital $ 578.1 26.0 % 8.5 % Total capital $ 611.8 27.5 % 10.5 % Tier 1 leverage $ 578.1 14.5 % 4.0 % Risk-weighted assets $ 2,224.0 N/A N/A Quarterly adjusted average assets $ 3,974.3 N/A N/A N/A – Not applicable The following table summarizes the Bank’s regulatory capital amounts and ratios at March 31, 2021 (in millions): LendingClub Bank Required Minimum plus Required CCB for Non-Leverage Ratios March 31, 2021 Amount Ratio CET1 capital $ 338.9 20.9 % 7.0 % Tier 1 capital $ 338.9 20.9 % 8.5 % Total capital $ 356.9 22.1 % 10.5 % Tier 1 leverage $ 338.9 12.9 % 4.0 % Risk-weighted assets $ 1,617.9 N/A N/A Quarterly adjusted average assets $ 2,626.3 N/A N/A N/A – Not applicable At March 31, 2021, $6.1 million of this capital benefit was applied to the computation of common equity Tier 1 capital. |
Other Non-interest Income and N
Other Non-interest Income and Non-interest Expense | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Non-interest Income and Non-interest Expense | Other Non-interest Income and Non-interest Expense Other non-interest income consists of the following: Three Months Ended 2021 2020 Referral revenue $ 2,594 $ 1,614 Sublease revenue 1,537 1,534 Realized gains (losses) on sales of securities available for sale (244) 1 Other 1,720 1,362 Total other non-interest income $ 5,607 $ 4,511 Other non-interest expense consists of the following: Three Months Ended 2021 2020 Consumer credit services $ 3,292 $ 5,507 Third-party collection fees 1,749 2,609 Insurance expense 1,347 1,164 Other 5,737 3,751 Total other non-interest expense $ 12,125 $ 13,031 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company defines operating segments to be components of the Company for which discrete financial information is evaluated regularly by the Company’s chief executive officer and chief financial officer to allocate resources and evaluate financial performance. This information is reviewed according to the legal organizational structure of the Company’s operations with products and services presented separately for the parent bank holding company and its wholly-owned subsidiary, LendingClub Bank. LendingClub Corporation (Parent Only) The LendingClub Corporation (parent only) operating segment represents the holding company legal entity and predominately reflects the historical operations of the Company. This activity includes, but is not limited to, the purchase and sale of loans prior to February 1, 2021 and ongoing issuances of education and patient finance loans that are originated by banking partners. LendingClub Bank The LendingClub Bank operating segment represents the national bank legal entity and reflects post-acquisition operating activities. This segment provides a full complement of financial products and solutions, including loans, leases and deposits. It originates loans to individuals and businesses, retains loans for investment, sells loans to investors and manages the acquired business relationships with deposit holders. 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. Financial information for the segments is presented in the following tables: LendingClub LendingClub Intercompany Total Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2021 2020 2021 2020 2021 2020 2021 2020 Non-interest income: Marketplace revenue $ 45,665 $ 102,477 $ 36,062 $ — $ — $ — $ 81,727 $ 102,477 Other non-interest income 4,098 4,511 19,700 — (18,191) — 5,607 4,511 Total non-interest income 49,763 106,988 55,762 — (18,191) — 87,334 106,988 Interest income: Interest income 27,092 69,411 17,498 — — — 44,590 69,411 Interest expense (24,837) (45,213) (1,247) — — — (26,084) (45,213) Net interest income 2,255 24,198 16,251 — — — 18,506 24,198 Total net revenue 52,018 131,186 72,013 — (18,191) — 105,840 131,186 Provision for credit losses 2,470 (10,980) (23,963) — — — (21,493) (10,980) Non-interest expense (76,944) (167,974) (75,499) — 18,191 — (134,252) (167,974) Loss before income tax expense $ (22,456) $ (47,768) $ (27,449) $ — $ — $ — $ (49,905) $ (47,768) Capital expenditures $ 1,811 $ 11,435 $ 4,554 $ — $ — $ — $ 6,365 $ 11,435 Depreciation and amortization $ 11,150 $ 12,873 $ 616 $ — $ — $ — $ 11,766 $ 12,873 LendingClub LendingClub Intercompany Total March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Assets Total cash and cash equivalents $ 75,950 $ 524,963 $ 792,701 $ — $ (36,851) $ — $ 831,800 $ 524,963 Restricted cash 139,080 103,522 — — — — 139,080 103,522 Securities available for sale at fair value 122,766 142,226 151,653 — — — 274,419 142,226 Loans held for sale at fair value 105,792 121,902 60,831 — — — 166,623 121,902 Loans and leases held for investment, net — — 2,079,300 — — — 2,079,300 — Retail and certificate loans held for investment at fair value 507,157 636,686 — — — — 507,157 636,686 Other loans held for investment at fair value 42,485 49,954 — — — — 42,485 49,954 Property, equipment and software, net 88,364 96,641 6,949 — — — 95,313 96,641 Investment in subsidiary 458,917 — — — (458,917) — — — Goodwill — — 75,717 — — — 75,717 — Other assets 206,756 187,399 123,227 — (50,788) — 279,195 187,399 Total assets 1,747,267 1,863,293 3,290,378 — (546,556) — 4,491,089 1,863,293 Liabilities and Equity Total deposits — — 2,410,288 — (36,851) — 2,373,437 — Short-term borrowings 87,347 104,989 2,744 — — — 90,091 104,989 Advances from PPPLF — — 370,086 — — — 370,086 — Retail notes, certificates and secured borrowings at fair value 507,203 636,774 — — — — 507,203 636,774 Payable on Structured Program borrowings 133,499 152,808 — — — — 133,499 152,808 Other long-term debt 15,738 — 2,834 — — — 18,572 — Other liabilities 240,486 244,551 75,875 — (51,295) — 265,066 244,551 Total liabilities 984,273 1,139,122 2,861,827 — (88,146) — 3,757,954 1,139,122 Total equity 762,994 724,171 428,551 — (458,410) — 733,135 724,171 Total liabilities and equity $ 1,747,267 $ 1,863,293 $ 3,290,378 $ — $ (546,556) $ — $ 4,491,089 $ 1,863,293 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Related 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. As of March 31, 2021, 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 its investment in the Investment Fund. The Company’s investment in the Investment Fund is recorded in “Other assets” on the Company’s Condensed 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 its investment. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to March 31, 2021, through the date the condensed consolidated financial statements were filed with the SEC. Based on this evaluation, other than as recorded or disclosed within these condensed consolidated financial statements and related notes, the Company has determined no additional subsequent events were required to be recognized or disclosed. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Loans and Leases | Loans and Leases The Company initially classifies loans and leases as either loans held for sale or loans held for investment based on management’s assessment of the Company’s intent and ability to hold the loans for the foreseeable future or until maturity. Management’s intent and ability with respect to certain loans may change from time to time depending on a number of factors, for example economic, liquidity, and capital conditions. In order to reclassify loans to held for sale, management must have the intent to sell the loans and reasonably identify the specific loans to be sold. Loans classified as held for investment are reported at their amortized cost basis, which includes the principal amount outstanding, net of unamortized deferred fees and costs on originated loans, unamortized premiums and discounts on purchased loans, unless the fair value option was elected, in which case those loans are carried at fair value. Leases are reported at their net investment in the lease which includes the gross lease receivable and residual value, net of unearned income, unamortized deferred fees and costs on originated leases, and unamortized premiums and discounts on purchased leases. Deferred origination fees and costs, and premiums and discounts on purchased loans, are amortized over the contractual life of the related loan and leases as interest income using the effective interest method. Accrued interest receivable on loans and leases is included in “Other assets” on the Company’s Condensed Consolidated Balance Sheets. For loans and leases held for investment at amortized cost, accrued interest income is calculated based on the contractual interest rate of the loan and recorded as interest income as earned. The accrual of interest and amortization of net deferred origination costs and fees is discontinued and the loan or lease is placed on nonaccrual status when the collectability of principal, interest or lease receivable is uncertain or payments of principal, interest or lease receivables have become past due 90 days or more. Past due status is based on the contractual terms. When a loan or lease held for investment is placed on nonaccrual status, all income previously accrued but not collected is reversed against the current period’s income. Because the Company has a nonaccrual policy which results in the timely reversal of past-due accrued interest, it does not record an allowance for expected credit losses on accrued interest receivable. Interest received on nonaccrual loans and leases is either applied against the principal balance or reported as income depending on management’s judgment as to the collectability of principal. Nonaccrual loans and leases are returned to accrual status when there no longer exists concern over collectability, the borrower has demonstrated, over time, both the intent and ability to repay and the loan or lease has been brought current and future payments are reasonably assured. |
Allowance for Expected Credit Losses | Allowance for Expected Credit Losses The allowance for expected credit losses for loans and leases, and reserve for unfunded lending commitments (collectively the allowance for expected credit losses (ACL)), are valuation reserves that represent the Company’s best estimate of expected credit losses (ECL) on the Company’s assets measured at amortized cost and unfunded lending commitments. The allowance for expected credit losses is measured based on a lifetime expected loss model, which does not require a loss event to occur before a credit loss is recognized. Under the lifetime expected credit loss model, the Company estimates the allowance based on relevant available information related to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. The Company evaluates its estimate of expected credit losses each reporting period and records any additions to the allowance on the Condensed Consolidated Statements of Operations as a provision for credit losses. Any write-offs of amounts determined to be uncollectible are charged to the allowance. Estimates of expected credit losses include expected recoveries of amounts previously written-off and expected to be written-off. There could be instances where including expected recoveries of previously written-off loans in the estimate of expected credit losses may result in a negative allowance. The allowance for expected credit losses is measured on a collective basis when loans share similar risk characteristics. Relevant risk characteristics for the consumer portfolio include product type, loan term, and monthly vintage. Relevant risk characteristics for the commercial portfolio include product type and purchased credit deteriorated (PCD) status. Loans measured on a collective basis generally have an allowance for expected credit losses which are made up of a quantitative, or modeled, component, and a qualitative component. The Company will continue to monitor its loan pools on an ongoing basis and adjust accordingly as the risk characteristics of the financial assets may change over time. If a given financial asset does not share similar risk characteristics with other financial assets, the Company shall measure ECL on an individual, rather than on a collective basis. Loans measured on an individual basis generally have an allowance for expected credit losses which is measured in reference to any collateral securing the loan and/or expected cash flows which are specific to the borrower. Allowance Calculation Methodology The Company generally estimates ECL over the contractual term of its loans. The contractual term is adjusted for expected prepayments when appropriate. Expected renewals and extensions do not adjust the contractual term unless the extension or renewal option is through a troubled debt restructuring (TDR) that is reasonably expected to occur or represents an unconditionally cancellable option held by the borrower. The quantitative, or modeled, component of the ACL is primarily based on statistical models that use known or estimated data as of the balance sheet date and forecasted data over the reasonable and supportable period. Known and estimated data include current probability of default, loss given default and exposure at default, timing and amount of expected prepayments, timing and amount of expected draws (for unfunded lending commitments), and relevant risk characteristics. Certain of the Company’s portfolios have limited historical loss data available internally. For these portfolios, the Company uses external credit loss information from the FDIC Call Report and Small Business Administration (SBA) data, which includes historical charge-off and balance data for peer banking institutions. The Company obtains historical macroeconomic data dating back to 2004 from the St. Louis Federal Reserve Economic Database (FRED) and Moody’s Analytics to inform its view of the long-term condition of the economy. Forward-looking macroeconomic factors considered in the Company’s statistical models include Gross Domestic Product (GDP), unemployment rate, housing prices, and retail sales. Forward-looking macroeconomic factors are incorporated into the Company’s models for a two-year reasonable and supportable economic forecast period followed by a one-year reversion period during which expected credit losses are expected to revert back on a straight-line basis to historical losses unadjusted for economic conditions. The reasonable and supportable economic forecast period and reversion methodology are accounting estimates which may change in future periods as a result of changes to the current macroeconomic environment. The Company’s statistical models produce expected cash flows, which are then discounted at the effective interest rate to derive net present value. This net present value is then compared to the amortized cost basis to derive the expected credit losses. As a result, the quantitative, or modeled, portion of ACL is estimated using a discounted cash flow (DCF) approach. The Company also considers the need for qualitative adjustments to the modeled estimate of expected credit losses. For this purpose, the Company established a qualitative factor framework to periodically assess qualitative adjustments to address certain identified elements that are not directly captured by the expected credit loss models. These factors may include the impact of risk rating downgrades, changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in lending management and other external factors. Zero Credit Loss Expectation Exception The Company has a zero loss expectation when the loans, or portions thereof, are issued or guaranteed by certain U.S. government entities or agencies, and those entities or agencies have a long history of no defaults and the highest credit ratings issued by rating agencies. Loans held for investment which meet this criterion do not have an allowance for expected credit losses. Reserve for Unfunded Lending Commitments The Company also estimates expected credit losses associated with off-balance sheet commitments such as commitments to extend credit and unused lines of credit. The Company estimates these expected credit losses for the unfunded portion of the commitments that are not unconditionally cancellable depending on the likelihood that funding will occur. The reserve for unfunded lending commitments is reported as a liability within “Other liabilities” on the Company’s Condensed Consolidated Balance Sheets. Individually Assessed Loans Loans whose terms have been modified in a troubled debt restructuring (TDR) and collateral-dependent financial assets are individually assessed for purposes of measuring expected credit losses. The allowance for expected credit losses on loans modified in a TDR is calculated using the discounted cash flow approach and is recorded as the difference between the amortized cost basis and the expected future cash flows. For purposes of discounting, the Company uses the original effective interest rate of the TDR loan. For loans that are determined to be collateral dependent, the allowance for expected credit losses is determined using the fair value of the collateral method. Loans are considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially through sale or operation of the collateral. For such loans, the allowance is calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. Purchased Credit Deteriorated Assets PCD assets are acquired financial assets (or groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment. The Company considers indicators such as loan rating, FICO score, days past due status, nonaccrual status, TDR status, charge-off status, bankruptcy, purchased credit impaired (PCI) status from prior acquisition, COVID-19 modification or industry risk rating to determine whether an acquired asset meets the definition of PCD. PCD assets are recorded on the acquisition date at their purchase price plus any related initial ACL, which results in a “gross-up” of the asset’s initial amortized cost basis. Recognition of the initial ACL upon acquisition for PCD assets does not impact net income. Subsequent to the acquisition date, any changes in the ACL are recorded through the provision for credit losses on the income statement. Acquired non-PCD assets are accounted for in a manner similar to originated financial assets, whereby any initial ACL is recorded through the provision for credit losses in the income statement. Radius Acquisition In connection with the Radius acquisition, the Company was required to record an allowance for non-PCD assets with a corresponding increase to the provision for credit losses. For acquired PCD loans, an allowance was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, the CECL allowance included as part of the grossed-up loan balance at acquisition was immediately written-off, resulting in a zero period-end allowance balance and no impact on the ACL rollforward. See “ Note 2. Business Acquisition ” for additional detail. Charge-Offs Charge-offs are recorded when the Company determines that a loan balance is uncollectible or a loss-confirming event has occurred. Loss confirming events usually involve the receipt of specific adverse information about the borrower and may include borrower delinquency status, bankruptcy, foreclosure, or receipt of an asset valuation indicating a shortfall between the value of the collateral and the book value of the loan when that collateral asset is the sole source of repayment. A full or partial charge-off reduces the amortized cost basis of the loan and the related ACL. For acquired PCD loans where all or a portion of the loan balance had been charged off prior to acquisition, and for which active collection efforts are still underway, the CECL allowance included as part of the grossed-up loan balance at acquisition is immediately charged off if required by the Company’s existing charge off policy. Additionally, the Company is required to consider its existing policies in determining whether to charge off any financial assets, regardless of whether a charge-off was recorded by the predecessor company. The initial ACL recognized on PCD assets includes the gross-up of the loan balance reduced by immediate charge-offs for loans previously charged off by the predecessor company or which meet the Company’s charge-off policy on the date of acquisition. Charge-offs against the allowance related to such acquired PCD loans do not result in an income statement impact. See “ Note 6. Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses |
Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. See “ Note 2. Business Acquisition ” for further discussion of the acquisition of Radius and its impact on the Company’s consolidated financial statements. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is the purchase consideration of an acquired business in excess of the aggregate fair value of the identified net assets acquired. The Company allocates goodwill to the reporting unit(s) (generally defined as an operating segment or one level below an operating segment for which financial information is available and reviewed regularly by management) that are expected to benefit from the synergies of the business combination. The goodwill of each reporting unit is reviewed for impairment annually or 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. Our annual impairment testing is completed in the fourth quarter. Impairment exists whenever the carrying value of goodwill exceeds its estimated fair value. Adverse changes in impairment indicators such as lower than forecast financial performance, increased competition, increased regulatory oversight, or unplanned changes in operations could result in impairment. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards The Company did not adopt any new accounting standards during the three month period ended March 31, 2021. 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 the 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 in 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 Recognition | Marketplace revenue consists of (i) origination fees, (ii) servicing fees, (iii) gain (loss) on sales of loans and (iv) net fair value adjustments, as described below. Origination Fees: Origination fees are primarily fees earned related to originating and issuing unsecured personal loans that are held for sale. Origination fees are paid directly to the Company by borrowers upon the origination of the loan. In addition, origination fees include transaction fees that are paid to the Company by issuing bank partners or education and patient service providers for the work performed in facilitating the origination of loans by the issuing banks. Prior to the acquisition of Radius, the Company relied on third-party issuing banks to originate and fund loans initiated by borrowers. Following the acquisition, the Company became the originator and lender for all unsecured personal and auto loans. However, the Company continues to utilize issuing bank partners to fund education and patient finance loans, which originate and service such loans and from whom the Company receives transaction fees. Servicing Fees: The Company receives servicing fees to compensate it for the costs incurred in servicing a loan, including managing payments from borrowers, collections and payments to investors. The amount of servicing fee revenue earned is predominantly affected by the servicing rates paid by investors and the outstanding principal balance of loans. Servicing fee revenue related to whole loans sold also includes the change in fair value of servicing assets and liabilities associated with the loans. Servicing rights are recorded as either an asset or liability depending on the degree to which the contractual loan servicing fee is above or below an estimated market rate loan servicing fee. Gain (Loss) on Sales of Loans: In connection with loan sales and in addition to servicing fees earned with respect to the corresponding loan, the Company recognizes a gain or loss on the sale of that loan based on the level to which the contractual loan servicing fee is above or below an estimated market rate loan servicing fee. Additionally, the Company recognizes transaction costs as a loss on sale of loans. Net Fair Value Adjustments: The Company records fair value adjustments on loans that are recorded at fair value. Revenue from Contracts with Customers The Company’s revenue from contracts with customers includes i) transaction fees received from issuing bank partners and ii) referral fees from third-party companies. Transaction fees are presented as a component of |
Business Acquisition (Tables)
Business Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Consideration Paid for Acquisition | Upon closing, LendingClub acquired all outstanding voting equity interests of Radius in exchange for total consideration as follows: Cash paid $ 140,256 Fair value of common stock issued (1) 40,808 Consideration related to share-based payments (2) 5,742 Total consideration paid $ 186,806 (1) Calculated using the closing stock price of $10.85 on January 29, 2021, the most recent trading day preceding the acquisition, multiplied by 3,761,114 shares issued pursuant to the Plan of Merger. (2) In connection with the acquisition, LendingClub agreed to convert equity awards held by Radius employees into cash and LendingClub awards pursuant to the Plan of Merger. |
Schedule of Allocation of Consideration Paid | The following table presents an allocation of the total consideration paid to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed: Assets acquired: Cash and due from banks $ 18,184 Interest-bearing deposits in banks 650,052 Total cash and cash equivalents 668,236 Securities available for sale at fair value 259,037 Loans and leases held for investment 1,610,054 Allowance for loan and lease losses (12,440) Loans and leases held for investment, net 1,597,614 Property, equipment and software, net 1,926 Goodwill 75,717 Other assets 86,482 Total assets 2,689,012 Liabilities assumed: Non-interest bearing deposits 167,187 Interest-bearing deposits 1,862,272 Total deposits 2,029,459 Short-term borrowings 9,870 Advances from PPPLF 420,962 Other long-term debt 18,630 Other liabilities 23,285 Total liabilities 2,502,206 Total consideration paid $ 186,806 |
Schedule of Pro Forma Financial Information | The table below presents certain unaudited pro forma financial information for illustrative purposes only, for the first quarters of 2021 and 2020, as if the acquisition took place on January 1, 2020. The pro forma information combines the historical results of Radius with the Company’s, adjusting for the estimated impact of certain fair value adjustments for the respective periods. The pro forma information does not reflect changes to the provision for credit losses resulting from recording loan assets as fair value, cost savings, or business synergies. As a result, actual amounts would have differed from the unaudited pro forma information presented and the differences could be significant. Three Months Ended 2021 2020 Total net revenue $ 112,911 $ 144,593 Consolidated net loss $ (54,020) $ (54,611) |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments | The presentation shown below is reflective of what is generally expected to be used by the combined company under GAAP. As of December 31, 2020 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Assets Cash and cash equivalents $ 524,963 $ (524,963) $ — Cash and due from banks — 5,197 5,197 Interest bearing deposits in banks — 519,766 519,766 Total cash and cash equivalents — 524,963 524,963 Restricted cash 103,522 — 103,522 Securities available for sale at fair value 142,226 — 142,226 Loans held for investment at fair value 636,686 (636,686) — Loans held for investment by the Company at fair value 49,954 (49,954) — Loans held for sale by the Company at fair value 121,902 (121,902) — Loans held for sale at fair value — 121,902 121,902 Retail and certificate loans held for investment at fair value — 636,686 636,686 Other loans held for investment at fair value — 49,954 49,954 Accrued interest receivable 5,205 (5,205) — Property, equipment and software, net 96,641 — 96,641 Operating lease assets 74,037 (74,037) — Intangible assets, net 11,427 (11,427) — Other assets 96,730 90,669 187,399 Total assets $ 1,863,293 $ — $ 1,863,293 Liabilities and Equity Accounts payable $ 3,698 $ (3,698) $ — Accrued interest payable 4,572 (4,572) — Operating lease liabilities 94,538 (94,538) — Accrued expenses and other liabilities 101,457 (101,457) — Payable to investors 40,286 (40,286) — Credit facilities and securities sold under repurchase agreements 104,989 (104,989) — Short-term borrowings — 104,989 104,989 Retail notes, certificates and secured borrowings at fair value 636,774 — 636,774 Payable on Structured Program borrowings 152,808 — 152,808 Other liabilities — 244,551 244,551 Total liabilities 1,139,122 — 1,139,122 Equity Common stock 881 — 881 Additional paid-in capital 1,508,020 — 1,508,020 Accumulated deficit (786,214) — (786,214) Accumulated other comprehensive income 1,484 — 1,484 Total equity 724,171 — 724,171 Total liabilities and equity $ 1,863,293 $ — $ 1,863,293 Three months ended March 31, 2020 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Net Revenue Transaction fees $ 136,243 $ (136,243) $ — Interest income 69,411 (69,411) — Interest expense (44,241) 44,241 — Net fair value adjustments (101,738) 101,738 — Net interest income and fair value adjustments (76,568) 76,568 — Investor fees 41,759 (41,759) — Gain on sales of loans 14,261 (14,261) — Net investor revenue (20,548) 20,548 — Other revenue 4,511 (4,511) — Total net revenue 120,206 (120,206) — Non-interest income Marketplace revenue (1) — 102,477 102,477 Other non-interest income — 4,511 4,511 Total non-interest income — 106,988 106,988 Interest income Interest on loans held for sale — 27,376 27,376 Interest on retail and certificate loans held for investment at fair value — 35,376 35,376 Interest on other loans held for investment at fair value — 1,999 1,999 Interest on securities available for sale — 3,779 3,779 Other interest income — 881 881 Total interest income — 69,411 69,411 Interest expense Interest on short-term borrowings — 7,398 7,398 Interest on retail notes, certificates and secured borrowings — 35,376 35,376 Interest on Structured Program borrowings — 2,299 2,299 Interest on other long-term debt — 140 140 Total interest expense (2) — 45,213 45,213 Net interest income — 24,198 24,198 Total net revenue (3) — 131,186 131,186 Provision for credit losses (3) — 10,980 10,980 Operating expenses Sales and marketing 49,784 (49,784) — Origination and servicing 20,994 (20,994) — Engineering and product development 38,710 (38,710) — Other general and administrative 58,486 (58,486) — Total operating expenses 167,974 (167,974) — Non-interest expense Compensation and benefits — 75,545 75,545 Marketing — 39,081 39,081 Equipment and software — 6,490 6,490 Occupancy — 6,813 6,813 Depreciation and amortization — 12,873 12,873 Professional services — 14,141 14,141 Other non-interest expense — 13,031 13,031 Total non-interest expense — 167,974 167,974 Loss before income tax expense (47,768) — (47,768) Income tax expense 319 — 319 Consolidated net loss $ (48,087) $ — $ (48,087) (1) See “ Note 3. Marketplace Revenue ” for additional detail. (2) The increase in total interest expense relates to valuation adjustments on Structured Program borrowings reclassified from net fair value adjustments to interest expense. (3) The increase in total net revenue relates to credit valuation adjustments on securities available for sale reclassified from net fair value adjustments to provision for credit losses. |
Marketplace Revenue (Tables)
Marketplace Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Source | The following table presents components of marketplace revenue for the periods presented: Three Months Ended 2021 2020 Origination fees $ 55,559 $ 136,243 Servicing fees 23,166 41,759 Gain on sales of loans 8,323 14,261 Net fair value adjustments (1) (5,321) (89,786) Total marketplace revenue $ 81,727 $ 102,477 (1) Certain prior period valuation adjustments on securities available for sale and Structured Program borrowings were reclassified from net fair value adjustments to provision for credit losses and interest expense, respectively, to conform to the current period presentation. The following table presents the Company’s revenue from contracts with customers, disaggregated by revenue source for services transferred over time, for the first quarters of 2021 and 2020: Three Months Ended 2021 2020 Transaction fees $ 22,402 $ 136,243 Referral fees 2,594 1,614 Total revenue from contracts with customers $ 24,996 $ 137,857 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 income (loss) per share of common stock and Series A preferred stock: Three Months Ended March 31, 2021 2020 Common Stock Preferred Stock (1)(2) Common Stock Preferred Stock (1)(2) Allocation of undistributed consolidated net loss $ (45,776) $ (1,308) $ (45,240) $ (2,847) Deemed dividend — — (50,204) 50,204 Net income (loss) attributable to stockholders $ (45,776) $ (1,308) $ (95,444) $ 47,357 Weighted-average common shares – Basic and Diluted 92,666,169 2,648,758 86,505,560 2,579,710 Net income (loss) per share attributable to stockholders – Basic and Diluted $ (0.49) $ (0.49) $ (1.10) $ 18.36 (1) Presented on an as-converted basis. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the weighted-average common stock that were excluded from the Company’s diluted net income (loss) per share computation because their effect would have been anti-dilutive for the periods presented: Three Months Ended 2021 2020 Preferred stock 2,648,758 2,579,710 RSUs and PBRSUs 1,468,191 30,852 Stock options 371,367 283,201 Total 4,488,316 2,893,763 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020, were as follows: March 31, 2021 Amortized Gross Gross Allowance for Credit Losses Fair U.S. agency residential mortgage-backed securities $ 72,348 $ 19 $ (1,637) $ — $ 70,730 Asset-backed senior securities (1) 62,894 59 — — 62,953 CLUB Certificate asset-backed securities (1) 40,741 1,515 (241) (48) 41,967 Other asset-backed securities 29,858 79 (137) — 29,800 Commercial mortgage-backed securities 28,856 12 (428) — 28,440 U.S. agency securities 20,078 5 (799) — 19,284 Asset-backed subordinated securities (1) 15,044 3,688 (79) (866) 17,787 Municipal securities 3,312 — (54) — 3,258 Other securities 200 — — — 200 Total securities available for sale (2) $ 273,331 $ 5,377 $ (3,375) $ (914) $ 274,419 December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair Asset-backed senior securities (1) $ 75,332 $ 67 $ (27) $ — $ 75,372 CLUB Certificate asset-backed securities (1) 54,525 576 (772) (4,190) 50,139 Asset-backed subordinated securities (1) 29,107 2,128 (174) (14,546) 16,515 Other securities 200 — — — 200 Total securities available for sale (2) $ 159,164 $ 2,771 $ (973) $ (18,736) $ 142,226 (1) As of March 31, 2021 and December 31, 2020, $91.9 million and $119.3 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. (2) As of March 31, 2021, and December 31, 2020, includes $238.3 million and $133.5 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 March 31, 2021 and December 31, 2020, aggregated by period of continuous unrealized loss, is as follows: Less than 12 months Total March 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized U.S. agency residential mortgage-backed securities $ 63,011 $ (1,637) $ — $ — $ 63,011 $ (1,637) Asset-backed securities related to Structured Program transactions 722 (79) 12,345 (241) 13,067 (320) Other asset-backed securities 17,534 (137) — — 17,534 (137) Commercial mortgage-backed securities 24,862 (428) — — 24,862 (428) U.S. agency securities 10,098 (799) — — 10,098 (799) Municipal securities 3,258 (54) — — 3,258 (54) Total securities with unrealized losses (1) $ 119,485 $ (3,134) $ 12,345 $ (241) $ 131,830 $ (3,375) 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) (1) The number of investment positions with unrealized losses at March 31, 2021 and December 31, 2020 totaled 124 and 55, respectively. |
Allowance for Credit Losses for Securities Available for Sale | The following table presents the activity in the allowance for credit losses for securities available for sale, by major security type, for the first quarters of 2021 and 2020: Allowance for Credit Losses CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of January 1, 2021 $ (4,190) $ (14,546) $ (18,736) Reversal of securities available for sale 188 2,282 2,470 Charge-offs 3,954 11,398 15,352 Ending balance as of March 31, 2021 $ (48) $ (866) $ (914) Allowance for Credit Losses CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of January 1, 2020 $ — $ — $ — Impairment on securities available for sale (4,684) (6,296) (10,980) Allowance arising from PCD financial assets (3,954) (3,901) (7,855) Ending balance as of March 31, 2020 $ (8,638) $ (10,197) $ (18,835) |
Available-for-sale Securities Purchased with Credit Deterioration | Securities available for sale purchased with credit deterioration during the first quarter of 2020 were as follows: Three Months Ended March 31, 2020 Purchase price of PCD securities at acquisition $ 23,043 Allowance for credit losses on PCD securities at acquisition 7,885 Par value of acquired PCD securities at acquisition $ 30,928 |
Available-for-sale Securities by Contractual Maturity | The contractual maturities of securities available for sale at March 31, 2021, were as follows: Amortized Cost Fair Value Weighted- average Yield (1) Due within 1 year: Other securities 200 200 Total due within 1 year 200 200 0.02 % Due after 5 years through 10 years: U.S. agency residential mortgage-backed securities 449 446 Other asset-backed securities 1,084 1,084 Commercial mortgage-backed securities 3,503 3,403 U.S. agency securities 4,092 4,094 Municipal securities 471 463 Total due after 5 years through 10 years 9,599 9,490 0.97 % Due after 10 years: U.S. agency residential mortgage-backed securities 71,899 70,284 Other asset-backed securities 28,774 28,716 Commercial mortgage-backed securities 25,353 25,037 U.S. agency securities 15,986 15,190 Municipal securities 2,841 2,795 Total due after 10 years 144,853 142,022 1.06 % Asset-backed securities related to Structured Program transactions 118,679 122,707 6.04 % Total securities available for sale $ 273,331 $ 274,419 3.22 % (1) The weighted-average yield is computed using the amortized cost at March 31, 2021. |
Schedule of Proceeds and Realized Gain (Loss) | Proceeds and gross realized gains and losses from other sales of securities available for sale were as follows: Three Months Ended March 31, 2021 2020 Proceeds $ 106,192 $ 2,396 Gross realized gains $ 708 $ 3 Gross realized losses $ (952) $ (2) |
Loans and Leases Held for Inv_2
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Notes and Certificates | Loans and Leases Held for Investment The Company defines its loans and leases held for investment portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable: March 31, 2021 Unsecured personal $ 321,104 Residential mortgages 164,002 Secured consumer 387,244 Other consumer 34 Total consumer loans held for investment 872,384 Equipment finance (1) 145,885 Commercial real estate 302,445 Commercial and industrial (2) 794,718 Total commercial loans and leases held for investment 1,243,048 Total loans and leases held for investment 2,115,432 Allowance for loan and lease losses (36,132) Loans and leases held for investment, net $ 2,079,300 (1) Comprised of sales-type leases for equipment. See “ Note 17. Leases ” for additional information. (2) Includes $664.4 million of Paycheck Protection Program (PPP) loans. The Company does not measure an allowance for expected credit losses on these loans. |
Financing Receivable, Allowance for Credit Loss | The activity in the allowance for expected credit losses by portfolio segment for the quarter ended March 31, 2021 was as follows: March 31, 2021 Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ — $ — $ — Credit loss expense for loans and leases held for investment 19,182 4,371 23,553 Initial allowance for PCD loans acquired during the period (1) 603 11,837 12,440 Charge-offs — — — Recoveries — 139 139 Allowance for loan and lease losses, end of period $ 19,785 $ 16,347 $ 36,132 Reserve for unfunded lending commitments, beginning of period $ — $ — $ — Credit loss expense for unfunded lending commitments 6 404 410 Reserve for unfunded lending commitments, end of period $ 6 $ 404 $ 410 (1) For acquired PCD loans, an allowance of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, a CECL allowance of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million. |
Financing Receivable Credit Quality Indicators | The following table presents the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status as of March 31, 2021 and origination year: March 31, 2021 Term Loans and Leases by Origination Year 2021 2020 2019 2018 2017 Prior Within Revolving Period Total Unsecured personal Current $ 321,104 $ — $ — $ — $ — $ — $ — $ 321,104 30-59 days past due — — — — — — — — 60-89 days past due — — — — — — — — 90 or more days past due — — — — — — — — Total unsecured personal 321,104 — — — — — — 321,104 Residential mortgages Current 5,484 41,480 34,515 13,319 5,109 59,215 1,295 160,417 30-59 days past due — — — — 94 358 — 452 60-89 days past due — — 393 — — — — 393 90 or more days past due — — 970 678 255 837 — 2,740 Total residential mortgages 5,484 41,480 35,878 13,997 5,458 60,410 1,295 164,002 Secured consumer Current 55,457 139,010 77,488 62,528 22,299 25,688 — 382,470 30-59 days past due — — — — — — — — 60-89 days past due — — — — — — — — 90 or more days past due — — 1,203 2,655 916 — — 4,774 Total secured consumer 55,457 139,010 78,691 65,183 23,215 25,688 — 387,244 Other consumer Current 25 — — — — — 9 34 30-59 days past due — — — — — — — — 60-89 days past due — — — — — — — — 90 or more days past due — — — — — — — — Total other consumer 25 — — — — — 9 34 Total consumer loans held for investment $ 382,070 $ 180,490 $ 114,569 $ 79,180 $ 28,673 $ 86,098 $ 1,304 $ 872,384 The following table presents the classes of financing receivables within the commercial portfolio segment by risk rating as of March 31, 2021 and origination year: March 31, 2021 Term Loans and Leases by Origination Year 2021 2020 2019 2018 2017 Prior Within Revolving Period Total Equipment finance Pass $ 14,126 $ 44,674 $ 38,224 $ 25,329 $ 8,434 $ 13,980 $ — $ 144,767 Special mention — 257 — 861 — — — 1,118 Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 14,126 44,931 38,224 26,190 8,434 13,980 — 145,885 Commercial real estate Pass 10,601 56,178 67,315 44,612 25,050 69,509 3,783 277,048 Special mention — 8,325 276 — — 822 — 9,423 Substandard — — — 2,959 445 12,363 — 15,767 Doubtful — — — — — — — — Loss — — — — — 207 — 207 Total commercial real estate 10,601 64,503 67,591 47,571 25,495 82,901 3,783 302,445 Commercial and industrial Pass 249,629 459,662 31,010 11,571 16,743 11,107 2,436 782,158 Special mention — — 2,352 704 1,064 110 — 4,230 Substandard — 1,118 133 2,340 1,885 1,791 — 7,267 Doubtful — — — — — — — — Loss — — — — — 1,063 — 1,063 Total commercial and industrial (1) 249,629 460,780 33,495 14,615 19,692 14,071 2,436 794,718 Total commercial loans and leases held for investment 274,356 570,214 139,310 88,376 53,621 110,952 6,219 1,243,048 |
Past Due Financing Receivables | The following table presents an analysis of the past-due loans and leases held for investment within the commercial portfolio segment at March 31, 2021: March 31, 2021 Days Past Due Current-29 30-59 60-89 90 or more Total Equipment finance $ 145,885 $ — $ — $ — $ 145,885 Commercial real estate 300,350 1,226 — 869 302,445 Commercial and industrial (1) 792,647 1,008 — 1,063 794,718 Total commercial loans and leases held for investment $ 1,238,882 $ 2,234 $ — $ 1,932 $ 1,243,048 (1) Includes $664.4 million of PPP loans. The Company does not measure an allowance for expected credit losses on these loans. The following table presents nonaccrual loans and leases as of March 31, 2021: March 31, 2021 Nonaccrual (1) Nonaccrual with no related ACL Unsecured personal $ — $ — Residential mortgages 3,383 2,735 Secured consumer 4,774 3,858 Other consumer — — Total nonaccrual consumer loans held for investment 8,157 6,593 Equipment finance — — Commercial real estate 2,420 1,653 Commercial and industrial 1,360 1,063 Total nonaccrual commercial loans and leases held for investment 3,780 2,716 Total nonaccrual loans and leases held for investment $ 11,937 $ 9,309 (1) There were no loans and leases that were 90 days or more past due and accruing as of March 31, 2021. |
Financing Receivable, Acquired Financial Assets With Credit Deterioration | Acquired PCD loans during the first quarter of 2021 were as follows: Three Months Ended March 31, 2021 Purchase price $ 337,118 Allowance for expected credit losses (1) 30,378 Discount attributable to other factors 12,204 Par value $ 379,700 (1) For acquired PCD loans, an allowance of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, a CECL allowance of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million. |
Securitizations and Variable _2
Securitizations and Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 Condensed Consolidated Balance Sheets for its transactions with consolidated and unconsolidated VIEs at March 31, 2021 and December 31, 2020. Additionally, the assets and liabilities in the table below exclude intercompany balances that eliminate in consolidation: March 31, 2021 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 17,536 $ — $ 17,536 Securities available for sale at fair value — 122,707 122,707 Loans held for sale at fair value 83,926 — 83,926 Retail and certificate loans held for investment at fair value 36,277 — 36,277 Other loans held for investment at fair value 42,261 — 42,261 Other assets 936 27,701 28,637 Total assets $ 180,936 $ 150,408 $ 331,344 Liabilities Retail notes, certificates and secured borrowings at fair value $ 36,277 $ — $ 36,277 Payable on Structured Program borrowings 133,499 — 133,499 Other liabilities 522 — 522 Total liabilities 170,298 — 170,298 Total net assets $ 10,638 $ 150,408 $ 161,046 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 sale at fair value 98,190 — 98,190 Retail and certificate loans held for investment at fair value 52,620 — 52,620 Other loans held for investment at fair value 50,102 — 50,102 Other assets 1,270 32,865 34,135 Total assets $ 218,165 $ 174,891 $ 393,056 Liabilities Retail notes, certificates and secured borrowings at fair value $ 52,620 $ — $ 52,620 Payable on Structured Program borrowings 152,808 — 152,808 Other liabilities 729 — 729 Total liabilities 206,157 — 206,157 Total net assets $ 12,008 $ 174,891 $ 186,899 The following tables present a summary of financial assets and liabilities from the Company’s involvement with consolidated VIEs at March 31, 2021 and December 31, 2020: March 31, 2021 Assets Liabilities Net Assets LC Trust $ 38,965 $ (36,554) $ 2,411 Consolidated trusts 141,971 (133,744) 8,227 Total consolidated VIEs $ 180,936 $ (170,298) $ 10,638 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 The following tables summarize unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary at March 31, 2021 and December 31, 2020: March 31, 2021 Carrying Value Total VIE Assets Securities Available for Sale Other Assets Net Assets Unconsolidated Trusts $ 1,077,309 $ 51,273 $ 7,911 $ 59,184 Certificate Program 1,555,920 71,434 12,015 83,449 Investment Fund 35,369 — 7,775 7,775 Total unconsolidated VIEs $ 2,668,598 $ 122,707 $ 27,701 $ 150,408 March 31, 2021 Maximum Exposure to Loss Securities Available for Sale Other Assets Net Assets Unconsolidated Trusts $ 51,273 $ 7,911 $ 59,184 Certificate Program 71,434 12,015 83,449 Investment Fund — 7,775 7,775 Total unconsolidated VIEs $ 122,707 $ 27,701 $ 150,408 December 31, 2020 Carrying Value Total VIE Assets Securities Available for Sale Other Assets Net Assets Unconsolidated Trusts $ 1,267,611 $ 57,511 $ 9,654 $ 67,165 Certificate Program 1,931,429 84,515 15,436 99,951 Investment Fund 34,376 — 7,775 7,775 Total unconsolidated VIEs $ 3,233,416 $ 142,026 $ 32,865 $ 174,891 December 31, 2020 Maximum Exposure to Loss Securities Available for Sale Other Assets Total Exposure Unconsolidated Trusts $ 57,511 $ 9,654 $ 67,165 Certificate Program 84,515 15,436 99,951 Investment Fund — 7,775 7,775 Total unconsolidated VIEs $ 142,026 $ 32,865 $ 174,891 |
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 financial statements for the first quarters of 2021 and 2020: Three Months Ended March 31, 2021 2020 Unconsolidated Trusts Unconsolidated Certificate Program Unconsolidated Trusts Unconsolidated Certificate Program Principal derecognized from loans securitized or sold $ — $ — $ 255,203 $ 637,637 Net gains (losses) recognized from loans securitized or sold $ — $ — $ (20) $ 5,596 Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement (1) $ — $ — $ 12,707 $ 31,423 Cash proceeds from loans securitized or sold $ — $ — $ 237,764 $ 598,515 Cash proceeds from servicing and other administrative fees on loans securitized or sold $ 3,017 $ 4,918 $ 5,121 $ 6,992 Cash proceeds for interest received on senior securities and subordinated securities $ 608 $ 1,258 $ 1,040 $ 2,273 (1) For Structured Program transactions, the Company retained asset-backed senior securities of $23.0 million, CLUB Certificate asset-backed securities of $18.3 million, and asset-backed subordinated securities of $2.9 million for the first quarter of 2020. The Company did not retain asset-backed securities related to Structured Program transactions during the first quarter of 2021. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy of Assets and Liabilities Measured on a Recurring Basis | The following tables present the fair value hierarchy for assets and liabilities measured at fair value at March 31, 2021 and December 31, 2020: March 31, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 166,623 166,623 Retail and certificate loans held for investment at fair value — — 507,157 507,157 Other loans held for investment at fair value — — 42,485 42,485 Securities available for sale: Asset-backed senior securities and subordinated securities — 62,953 17,787 80,740 U.S. agency residential mortgage-backed securities — 70,730 — 70,730 CLUB Certificate asset-backed securities — — 41,967 41,967 Other asset-backed securities — 29,800 — 29,800 Commercial mortgage-backed securities — 28,440 — 28,440 U.S. agency securities — 19,284 — 19,284 Municipal securities — 3,258 — 3,258 Other securities — 200 — 200 Total securities available for sale — 214,665 59,754 274,419 Servicing assets — — 54,113 54,113 Other assets — 4,235 5,202 9,437 Total assets $ — $ 218,900 $ 835,334 $ 1,054,234 Liabilities: Retail notes, certificates and secured borrowings $ — $ — $ 507,203 $ 507,203 Payable on Structured Program borrowings — — 133,499 133,499 Other liabilities — — 22,276 22,276 Total liabilities $ — $ — $ 662,978 $ 662,978 December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 121,902 $ 121,902 Retail and certificate loans held for investment at fair value — — 636,686 636,686 Other loans held for investment at fair value — — 49,954 49,954 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: Retail notes, certificates and secured borrowings $ — $ — $ 636,774 $ 636,774 Payable on Structured Program borrowings — — 152,808 152,808 Other liabilities — — 12,270 12,270 Total liabilities $ — $ — $ 801,852 $ 801,852 |
Fair Value Inputs Assets and Liabilities Quantitative Information | The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 loans held for sale at fair value at March 31, 2021 and December 31, 2020: Loans Held for Sale at Fair Value March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 5.2 % 15.5 % 8.3 % 7.6 % 16.0 % 8.5 % Net cumulative expected loss rates (1) 2.5 % 22.8 % 6.6 % 5.0 % 28.0 % 8.2 % Cumulative expected prepayment rates (1) 28.2 % 46.2 % 31.9 % 27.2 % 41.2 % 30.4 % (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 other loans held for investment at fair value at March 31, 2021 and December 31, 2020: Other Loans Held for Investment at Fair Value March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 5.2 % 15.4 % 8.8 % 7.5 % 16.1 % 8.8 % Net cumulative expected loss rates (1) 2.5 % 20.2 % 8.3 % 5.0 % 26.3 % 10.3 % Cumulative expected prepayment rates (1) 27.7 % 42.6 % 31.8 % 26.8 % 39.7 % 30.7 % (1) Expressed as a percentage of the original principal balance of the loan. |
Schedule Of Fair Value Sensitivity Of Loans | The sensitivity of loans held for sale at fair value to adverse changes in key assumptions as of March 31, 2021 and December 31, 2020, are as follows: March 31, 2021 December 31, 2020 Loans held for sale at fair value $ 166,623 $ 121,902 Expected weighted-average life (in years) 1.2 1.1 Discount rates 100 basis point increase $ (1,706) $ (1,151) 200 basis point increase $ (3,382) $ (2,282) Expected credit loss rates on underlying loans 10% adverse change $ (1,486) $ (1,099) 20% adverse change $ (3,003) $ (2,220) Expected prepayment rates 10% adverse change $ (514) $ (273) 20% adverse change $ (1,027) $ (556) The sensitivity of other loans held for investment at fair value to adverse changes in key assumptions as of March 31, 2021 and December 31, 2020, are as follows: March 31, 2021 December 31, 2020 Other loans held for investment at fair value $ 42,485 $ 49,954 Expected weighted-average life (in years) 1.0 1.1 Discount rates 100 basis point increase $ (428) $ (541) 200 basis point increase $ (849) $ (1,073) Expected credit loss rates on underlying loans 10% adverse change $ (447) $ (640) 20% adverse change $ (906) $ (1,295) Expected prepayment rates 10% adverse change $ (164) $ (181) 20% adverse change $ (342) $ (368) |
Fair Value of Assets Measured on a Recurring Basis | The following tables present additional information about Level 3 loans held for sale at fair value on a recurring basis for the first quarters of 2021 and 2020: Loans Held for Sale at Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2020 $ 132,600 $ (10,698) $ 121,902 Originations and purchases 941,945 (1,629) 940,316 Transfers (to) from loans held for investment and/or loans held for sale (63) — (63) Sales (873,672) 7,037 (866,635) Principal payments and retirements (22,821) — (22,821) Charge-offs, net of recoveries (3,859) 3,186 (673) Change in fair value recorded in earnings — (5,403) (5,403) Balance at March 31, 2021 $ 174,130 $ (7,507) $ 166,623 Loans Held for Sale at Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2019 $ 747,394 $ (25,039) $ 722,355 Purchases 1,379,094 — 1,379,094 Transfers (to) from loans held for investment and/or loans held for sale (43,123) — (43,123) Sales (1,171,407) 19,909 (1,151,498) Principal payments and retirements (70,103) — (70,103) Charge-offs, net of recoveries (6,298) 5,779 (519) Change in fair value recorded in earnings — (94,502) (94,502) Balance at March 31, 2020 $ 835,557 $ (93,853) $ 741,704 The following tables present additional information about Level 3 retail and certificate loans held for investment at fair value and retail notes, certificates and secured borrowings measured at fair value on a recurring basis for the first quarters of 2021 and 2020: Retail and Certificate Loans Held for Retail Notes, Certificates and Secured Borrowings Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2020 $ 679,903 $ (43,217) $ 636,686 $ 679,903 $ (43,129) $ 636,774 Principal payments and retirements (131,020) — (131,020) (131,020) — (131,020) Charge-offs, net of recoveries (12,008) 4,740 (7,268) (12,008) 4,652 (7,356) Change in fair value recorded in earnings — 8,759 8,759 — 8,805 8,805 Balance at March 31, 2021 $ 536,875 $ (29,718) $ 507,157 $ 536,875 $ (29,672) $ 507,203 Retail and Certificate Loans Held for Retail Notes, Certificates and Secured Borrowings Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2019 $ 1,148,888 $ (69,573) $ 1,079,315 $ 1,148,888 $ (67,422) $ 1,081,466 Purchases 104,620 — 104,620 — — — Transfers (to) from retail and certificate loans held for investment and/or loans held for sale (17,478) — (17,478) — — — Issuances — — — 104,620 — 104,620 Principal payments and retirements (215,748) — (215,748) (233,226) — (233,226) Charge-offs, net of recoveries (29,620) 17,311 (12,309) (29,620) 16,431 (13,189) Change in fair value recorded in earnings — (52,987) (52,987) — (52,831) (52,831) Balance at March 31, 2020 $ 990,662 $ (105,249) $ 885,413 $ 990,662 $ (103,822) $ 886,840 The following tables present additional information about Level 3 other loans held for investment at fair value on a recurring basis for the first quarters of 2021 and 2020: Other Loans Held for Investment at Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2020 $ 56,388 $ (6,434) $ 49,954 Purchases 116 (98) 18 Principal payments and retirements (8,324) — (8,324) Charge-offs, net of recoveries (1,025) 574 (451) Change in fair value recorded in earnings — 1,288 1,288 Balance at March 31, 2021 $ 47,155 $ (4,670) $ 42,485 Other Loans Held for Investment at Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2019 $ 47,042 $ (3,349) $ 43,693 Purchases 727 (693) 34 Transfers (to) from other loans held for investment and/or loans held for sale 43,188 — 43,188 Principal payments and retirements (5,684) — (5,684) Charge-offs, net of recoveries (1,623) 134 (1,489) Change in fair value recorded in earnings — (8,739) (8,739) Balance at March 31, 2020 $ 83,650 $ (12,647) $ 71,003 The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis for the first quarters of 2021 and 2020: Three Months Ended 2021 2020 Fair value at beginning of period $ 56,347 $ 89,680 Issuances (1) 7,235 17,581 Change in fair value, included in Marketplace revenue (11,837) (9,608) Other net changes included in Deferred revenue 2,368 (4,828) Fair value at end of period $ 54,113 $ 92,825 (1) Represents the gains or losses on sales of the related loans. |
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 retail and certificate loans held for investment at fair value and the related retail notes, certificates and secured borrowings at March 31, 2021 and December 31, 2020: Retail and Certificate Loans Held for Investment at Fair Value, March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 7.6 % 15.2 % 9.4 % 7.6 % 15.0 % 9.4 % Net cumulative expected loss rates (1) 3.7 % 20.6 % 9.7 % 4.3 % 28.1 % 11.2 % Cumulative expected prepayment rates (1) 28.3 % 36.3 % 31.5 % 27.3 % 35.7 % 30.4 % (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 asset-backed securities related to Structured Program transactions at March 31, 2021 and December 31, 2020: Asset-Backed Securities Related to Structured Program Transactions March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 2.2 % 25.1 % 8.7 % 2.2 % 25.1 % 8.4 % Net cumulative expected loss rates (1) 5.1 % 23.8 % 14.9 % 5.4 % 28.9 % 18.8 % Cumulative expected prepayment rates (1) 10.1 % 31.8 % 26.9 % 6.3 % 30.5 % 24.8 % (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 March 31, 2021 and December 31, 2020: Servicing Assets March 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 4.8 % 16.4 % 9.9 % 4.8 % 16.4 % 9.9 % Net cumulative expected loss rates (1) 2.6 % 26.9 % 10.7 % 4.5 % 26.3 % 12.5 % Cumulative expected prepayment rates (1) 28.1 % 46.2 % 32.7 % 27.0 % 38.9 % 31.2 % Total market servicing rates (% per annum on outstanding principal balance) (2) 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % (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. |
Fair Value Sensitivity of Loans | 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 March 31, 2021 and December 31, 2020: March 31, 2021 Asset-Backed Securities Related to Senior Securities Subordinated Securities CLUB Certificates Fair value of interests held $ 62,953 $ 17,787 $ 41,967 Expected weighted-average life (in years) 0.8 1.3 0.9 Discount rates 100 basis point increase $ (434) $ (164) $ (324) 200 basis point increase $ (859) $ (350) $ (642) Expected credit loss rates on underlying loans 10% adverse change $ — $ (1,286) $ (1,019) 20% adverse change $ — $ (2,630) $ (2,089) Expected prepayment rates 10% adverse change $ — $ (712) $ (561) 20% adverse change $ — $ (1,666) $ (1,168) December 31, 2020 Asset-Backed Securities Related to Senior Securities 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) |
Fair Value Disclosure And Measurement | The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions as of March 31, 2021 and December 31, 2020: Servicing Assets March 31, 2021 December 31, 2020 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Servicing rate increase by 0.10% $ (7,757) $ (7,379) Servicing rate decrease by 0.10% $ 7,757 $ 7,379 |
Fair Value Sensitivity of Servicing Assets | The following table presents the fair value sensitivity of servicing assets to adverse changes in key assumptions as of March 31, 2021 and December 31, 2020: Servicing Assets March 31, 2021 December 31, 2020 Fair value of servicing assets $ 54,113 $ 56,347 Discount rates 100 basis point increase $ (437) $ (455) 200 basis point increase $ (875) $ (911) Expected loss rates 10% adverse change $ (598) $ (346) 20% adverse change $ (1,196) $ (691) Expected prepayment rates 10% adverse change $ (2,277) $ (1,596) 20% adverse change $ (4,554) $ (3,192) |
Fair Value, Liabilities Measured on Recurring Basis | 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 first quarters of 2021 and 2020: Three Months Ended 2021 2020 Fair value at beginning of period $ 66,654 $ 110,796 Additions 578 23,585 Cash received (14,194) (16,266) Change in unrealized gain (loss) 3,125 (5,256) Accrued interest 1,121 1,632 Reversal of (impairment on) securities available for sale 2,470 (10,980) Fair value at end of period $ 59,754 $ 103,511 |
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 at March 31, 2021 and December 31, 2020: March 31, 2021 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans and leases held for investment, net $ 2,079,300 $ — $ — $ 2,126,840 $ 2,126,840 Servicing assets 2,859 — — 2,921 2,921 Other assets — — 9,023 — 9,023 Total assets $ 2,082,159 $ — $ 9,023 $ 2,129,761 $ 2,138,784 Liabilities: Deposits $ 98,547 $ — $ — $ 98,547 $ 98,547 Short-term borrowings 90,091 — 54,088 36,003 90,091 Advances from PPPLF 370,086 — — 370,086 370,086 Other long-term debt 18,572 — — 18,572 18,572 Other liabilities 50,755 — 35,063 15,692 50,755 Total liabilities $ 628,051 $ — $ 89,151 $ 538,900 $ 628,051 December 31, 2020 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Total cash and cash equivalents (1) $ 524,963 $ — $ 524,963 $ — $ 524,963 Restricted cash (1) 103,522 — 103,522 — 103,522 Other assets 914 — 914 — 914 Total assets $ 629,399 $ — $ 629,399 $ — $ 629,399 Liabilities: Short-term borrowings $ 104,989 $ — $ 65,121 $ 39,868 $ 104,989 Other liabilities 57,536 — 43,984 13,552 57,536 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. |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, Net | Property, equipment and software, net, consist of the following: March 31, 2021 December 31, 2020 Internally developed software (1) $ 108,414 $ 101,953 Leasehold improvements 36,387 35,140 Computer equipment 27,896 27,030 Purchased software 19,327 19,004 Furniture and fixtures 8,252 8,203 Construction in progress 3,046 2,761 Total property, equipment and software 203,322 194,091 Accumulated depreciation and amortization (108,009) (97,450) Total property, equipment and software, net $ 95,313 $ 96,641 (1) Includes $14.7 million and $13.9 million of development in progress as of March 31, 2021 and December 31, 2020, respectively. |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The gross and net carrying values and accumulated amortization are as follows for the periods presented: March 31, 2021 December 31, 2020 Gross carrying value $ 54,500 $ 39,500 Accumulated amortization (29,280) (28,073) Net carrying value $ 25,220 $ 11,427 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The expected future amortization expense for intangible assets as of March 31, 2021, is as follows: 2021 $ 4,039 2022 4,847 2023 4,198 2024 3,549 2025 2,901 Thereafter 5,686 Total $ 25,220 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other assets consist of the following: March 31, 2021 December 31, 2020 Operating lease assets $ 84,931 $ 74,037 Servicing assets (1) 56,972 56,347 Bank-owned life insurance 31,623 — Intangible assets, net (2) 25,220 11,427 Prepaid expenses 17,163 16,455 Accounts receivable 14,194 10,243 Other investments 13,871 8,275 Accrued interest receivable 13,792 5,205 Other 21,429 5,410 Total other assets $ 279,195 $ 187,399 (1) As of March 31, 2021 and December 31, 2020, loans underlying loan servicing rights had a total outstanding principal balance of $9.4 billion and $10.1 billion, respectively. (2) See “ Note 10. Goodwill and Intangible Assets ” for additional detail. |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Deposits | Deposits consist of the following: March 31, 2021 Interest-bearing deposits: Checking accounts $ 1,653,254 Savings and money market accounts 478,026 Certificates of deposit (1) 98,547 Total $ 2,229,827 Noninterest-bearing deposits 143,610 Total deposits $ 2,373,437 (1) Includes $93.4 million in denominations of $100 thousand or more and $33.8 million in denominations in excess of $250 thousand federal insurance limits. Total certificates of deposit at March 31, 2021 are scheduled to mature as follows: 2021 $ 69,001 2022 25,062 2023 3,861 2024 57 2025 231 Thereafter 335 Total certificates of deposit $ 98,547 |
Short-term Borrowings and Lon_2
Short-term Borrowings and Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Principal Balance of Notes, Certificates and Secured Borrowings at Fair Value | The following table provides the balances of retail notes, certificates and secured borrowings at fair value at the end of the periods indicated: March 31, 2021 December 31, 2020 Retail notes $ 470,720 $ 583,219 Certificates 36,277 52,620 Secured borrowings (1) 206 935 Total retail notes, certificates and secured borrowings $ 507,203 $ 636,774 (1) At March 31, 2021 and December 31, 2020, a fair value of $0.2 million and $0.8 million included in “Retail and certificate loans held for investment at fair value” was pledged as collateral for secured borrowings, respectively. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Other Liabilities | Other liabilities consist of the following: March 31, 2021 December 31, 2020 Operating lease liabilities $ 104,220 $ 94,538 Payable to investors 35,063 40,286 Accrued expenses 26,176 14,382 Contingent liabilities (1) 21,988 21,592 Accrued compensation 16,319 28,805 Transaction fee refund reserve 15,692 14,119 Accounts payable 10,742 3,698 Deferred revenue 7,615 4,923 Loan trailing fee liability, at fair value 6,499 7,494 Other 20,752 14,714 Total other liabilities $ 265,066 $ 244,551 (1) See “ Note 18. Commitments and Contingencies ” for further information. |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Total Stock-based Compensation Expense | Stock-based compensation expense, included in “Compensation and benefits” expense on the Company’s Condensed Consolidated Statements of Operations, was as follows for the periods presented: Three Months Ended 2021 2020 RSUs and PBRSUs $ 14,743 $ 17,706 Stock options (1) 450 423 Total stock-based compensation expense $ 15,193 $ 18,129 (1) In the first quarter of 2021, includes common stock issued and consideration related to share-based payments in connection with the acquisition of Radius. See “ Note 2. Business Acquisition |
Schedule of RSU Activity | The following table summarizes the activities for the Company’s RSUs during the first quarter of 2021: Number Weighted- Unvested at December 31, 2020 11,395,112 $ 11.26 Granted 4,415,391 $ 11.15 Vested (1,011,815) $ 13.57 Forfeited/expired (496,946) $ 12.21 Unvested at March 31, 2021 14,301,742 $ 11.03 |
Schedule of PBRSU Activity | The following table summarizes the activities for the Company’s PBRSUs during the first quarter of 2021: Number Weighted- Unvested at December 31, 2020 1,441,311 $ 5.31 Granted 568,285 $ 22.54 Vested (20,285) $ 22.59 Unvested at March 31, 2021 1,989,311 $ 10.12 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Sales-type Lease, Lease Income | The components of Equipment Finance assets are as follows: March 31, 2021 Lease receivables $ 111,571 Unguaranteed residual asset values 36,646 Unearned income (2,455) Deferred fees 123 Total (1) $ 145,885 (1) See “ Note 6. Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses ” for additional information. |
Future Minimum Payments to be Received, Fiscal Year Maturity | Future minimum lease payments based on maturity of the Company’s lessor arrangements at March 31, 2021 were as follows: 2021 $ 32,252 2022 37,073 2023 27,303 2024 17,568 2025 9,393 Thereafter 8,772 Total lease payments $ 132,361 Discount effect (20,790) Present value of future minimum lease payments $ 111,571 |
Supplemental Balance Sheet Information | Balance sheet information as of March 31, 2021 and December 31, 2020 related to leases was as follows: ROU Assets and Lease Liabilities March 31, 2021 December 31, 2020 Operating lease assets $ 84,931 $ 74,037 Operating lease liabilities (1) $ 104,220 $ 94,538 (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 first quarters of 2021 and 2020 were as follows: Three Months Ended Net Lease Costs Income Statement Classification 2021 2020 Operating lease costs (1) Occupancy $ (4,977) $ (4,620) Sublease revenue Other non-interest income 1,537 1,534 Net lease costs $ (3,440) $ (3,086) (1) Includes variable lease costs of $0.1 million and $0.4 million for the first quarters of 2021 and 2020, respectively. |
Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s operating leases for the first quarters of 2021 and 2020 was as follows: Three Months Ended 2021 2020 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ 12,914 $ — (1) Represents non-cash activity and, accordingly, is not reflected in the Condensed Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease ROU asset. |
Future Minimum Undiscounted Lease Payments | The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of March 31, 2021 were as follows: Operating Lease Sublease Net 2021 $ 16,148 $ (5,079) $ 11,069 2022 15,947 (2,918) 13,029 2023 12,465 — 12,465 2024 12,810 — 12,810 2025 13,163 — 13,163 Thereafter 62,350 — 62,350 Total lease payments $ 132,883 $ (7,997) $ 124,886 Discount effect 28,663 Present value of future minimum lease payments $ 104,220 |
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 March 31, 2021 Weighted-average remaining lease term (in years) 8.69 Weighted-average discount rate 5.40 % |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unfunded Loan Commitments | Unfunded commitments and unused lines of credit at their contractual amounts were as follows: March 31, 2021 Fixed Variable Total Commitments to extend credit $ — $ 57,853 $ 57,853 Lines of credit $ 3,338 $ 37,129 $ 40,467 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the regulatory capital and ratios of the Company as of March 31, 2021 (in millions): LendingClub Required Minimum plus Required CCB for Non-Leverage Ratios March 31, 2021 Amount Ratio CET1 capital $ 578.1 26.0 % 7.0 % Tier 1 capital $ 578.1 26.0 % 8.5 % Total capital $ 611.8 27.5 % 10.5 % Tier 1 leverage $ 578.1 14.5 % 4.0 % Risk-weighted assets $ 2,224.0 N/A N/A Quarterly adjusted average assets $ 3,974.3 N/A N/A N/A – Not applicable The following table summarizes the Bank’s regulatory capital amounts and ratios at March 31, 2021 (in millions): LendingClub Bank Required Minimum plus Required CCB for Non-Leverage Ratios March 31, 2021 Amount Ratio CET1 capital $ 338.9 20.9 % 7.0 % Tier 1 capital $ 338.9 20.9 % 8.5 % Total capital $ 356.9 22.1 % 10.5 % Tier 1 leverage $ 338.9 12.9 % 4.0 % Risk-weighted assets $ 1,617.9 N/A N/A Quarterly adjusted average assets $ 2,626.3 N/A N/A N/A – Not applicable |
Other Non-interest Income and_2
Other Non-interest Income and Non-interest Expense (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Other non-interest income consists of the following: Three Months Ended 2021 2020 Referral revenue $ 2,594 $ 1,614 Sublease revenue 1,537 1,534 Realized gains (losses) on sales of securities available for sale (244) 1 Other 1,720 1,362 Total other non-interest income $ 5,607 $ 4,511 Other non-interest expense consists of the following: Three Months Ended 2021 2020 Consumer credit services $ 3,292 $ 5,507 Third-party collection fees 1,749 2,609 Insurance expense 1,347 1,164 Other 5,737 3,751 Total other non-interest expense $ 12,125 $ 13,031 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for the segments is presented in the following tables: LendingClub LendingClub Intercompany Total Three Months Ended Three Months Ended Three Months Ended Three Months Ended 2021 2020 2021 2020 2021 2020 2021 2020 Non-interest income: Marketplace revenue $ 45,665 $ 102,477 $ 36,062 $ — $ — $ — $ 81,727 $ 102,477 Other non-interest income 4,098 4,511 19,700 — (18,191) — 5,607 4,511 Total non-interest income 49,763 106,988 55,762 — (18,191) — 87,334 106,988 Interest income: Interest income 27,092 69,411 17,498 — — — 44,590 69,411 Interest expense (24,837) (45,213) (1,247) — — — (26,084) (45,213) Net interest income 2,255 24,198 16,251 — — — 18,506 24,198 Total net revenue 52,018 131,186 72,013 — (18,191) — 105,840 131,186 Provision for credit losses 2,470 (10,980) (23,963) — — — (21,493) (10,980) Non-interest expense (76,944) (167,974) (75,499) — 18,191 — (134,252) (167,974) Loss before income tax expense $ (22,456) $ (47,768) $ (27,449) $ — $ — $ — $ (49,905) $ (47,768) Capital expenditures $ 1,811 $ 11,435 $ 4,554 $ — $ — $ — $ 6,365 $ 11,435 Depreciation and amortization $ 11,150 $ 12,873 $ 616 $ — $ — $ — $ 11,766 $ 12,873 LendingClub LendingClub Intercompany Total March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Assets Total cash and cash equivalents $ 75,950 $ 524,963 $ 792,701 $ — $ (36,851) $ — $ 831,800 $ 524,963 Restricted cash 139,080 103,522 — — — — 139,080 103,522 Securities available for sale at fair value 122,766 142,226 151,653 — — — 274,419 142,226 Loans held for sale at fair value 105,792 121,902 60,831 — — — 166,623 121,902 Loans and leases held for investment, net — — 2,079,300 — — — 2,079,300 — Retail and certificate loans held for investment at fair value 507,157 636,686 — — — — 507,157 636,686 Other loans held for investment at fair value 42,485 49,954 — — — — 42,485 49,954 Property, equipment and software, net 88,364 96,641 6,949 — — — 95,313 96,641 Investment in subsidiary 458,917 — — — (458,917) — — — Goodwill — — 75,717 — — — 75,717 — Other assets 206,756 187,399 123,227 — (50,788) — 279,195 187,399 Total assets 1,747,267 1,863,293 3,290,378 — (546,556) — 4,491,089 1,863,293 Liabilities and Equity Total deposits — — 2,410,288 — (36,851) — 2,373,437 — Short-term borrowings 87,347 104,989 2,744 — — — 90,091 104,989 Advances from PPPLF — — 370,086 — — — 370,086 — Retail notes, certificates and secured borrowings at fair value 507,203 636,774 — — — — 507,203 636,774 Payable on Structured Program borrowings 133,499 152,808 — — — — 133,499 152,808 Other long-term debt 15,738 — 2,834 — — — 18,572 — Other liabilities 240,486 244,551 75,875 — (51,295) — 265,066 244,551 Total liabilities 984,273 1,139,122 2,861,827 — (88,146) — 3,757,954 1,139,122 Total equity 762,994 724,171 428,551 — (458,410) — 733,135 724,171 Total liabilities and equity $ 1,747,267 $ 1,863,293 $ 3,290,378 $ — $ (546,556) $ — $ 4,491,089 $ 1,863,293 |
Business Acquisition - Consider
Business Acquisition - Consideration (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 01, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Jan. 29, 2021 |
Business Acquisition [Line Items] | ||||
Cash paid | $ 145,344 | $ 0 | ||
Radius Bancorp, Inc. Merger | ||||
Business Acquisition [Line Items] | ||||
Cash paid | $ 140,256 | |||
Fair value of common stock issued | 40,808 | |||
Consideration related to share-based payments | 5,742 | |||
Value of cash and stock transaction | $ 186,806 | |||
Business acquisition, number of shares issued (in shares) | 3,761,114 | |||
Radius Bancorp, Inc. Merger | LendingClub | ||||
Business Acquisition [Line Items] | ||||
LendingClub share price (in dollars per share) | $ 10.85 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Feb. 01, 2021 | Dec. 31, 2020 | ||
Business Acquisition [Line Items] | |||||
Goodwill | [1] | $ 75,717 | $ 0 | ||
Total net revenue | [2] | 105,840 | $ 131,186 | ||
Consolidated net loss | (47,084) | $ (48,087) | |||
Radius Bancorp, Inc. Merger | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 75,700 | $ 75,717 | |||
Total net revenue | 15,000 | ||||
Consolidated net loss | $ 3,000 | ||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||
[2] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Business Acquisitions - Purchas
Business Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Assets acquired: | ||||
Goodwill | [1] | $ 75,717 | $ 0 | |
Radius Bancorp, Inc. Merger | ||||
Assets acquired: | ||||
Cash and due from banks | $ 18,184 | |||
Interest-bearing deposits in banks | 650,052 | |||
Total cash and cash equivalents | 668,236 | |||
Securities available for sale at fair value | 259,037 | |||
Loans and leases held for investment | 1,610,054 | |||
Allowance for loan and lease losses | (12,440) | |||
Loans and leases held for investment, net | 1,597,614 | |||
Property, equipment and software, net | 1,926 | |||
Goodwill | 75,717 | 75,700 | ||
Other assets | 86,482 | |||
Total assets | 2,689,012 | |||
Liabilities assumed: | ||||
Non-interest bearing deposits | 167,187 | |||
Interest-bearing deposits | 1,862,272 | |||
Interest-bearing deposits | 2,029,459 | |||
Short-term borrowings | 9,870 | |||
Advances from PPPLF | 420,962 | |||
Other long-term debt | 18,630 | |||
Other liabilities | 23,285 | |||
Total liabilities | 2,502,206 | |||
Total consideration paid | 186,806 | |||
Business combination, acquisition related costs | $ 16,000 | |||
Radius Bancorp, Inc. Merger | Non-PCD Loans | ||||
Liabilities assumed: | ||||
Allowance for Loan and Lease Losses, Loans Acquired | 6,900 | |||
Radius Bancorp, Inc. Merger | PCD Loans | ||||
Liabilities assumed: | ||||
Allowance for Loan and Lease Losses, Loans Acquired | $ 12,400 | |||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Business Acquisitions - Pro For
Business Acquisitions - Pro Forma Information (Details) - Radius Bancorp, Inc. Merger - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total net revenue | $ 112,911 | $ 144,593 |
Consolidated net loss | $ (54,020) | $ (54,611) |
Business Acquisitions - Summary
Business Acquisitions - Summary of Balance Sheet Reclassification Adjustments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||
Total cash and cash equivalents | $ 0 | ||||||
Cash and due from banks | $ 34,261 | [1] | 5,197 | ||||
Interest-bearing deposits in banks | 797,539 | [1] | 519,766 | ||||
Total cash and cash equivalents | 831,800 | [1] | 524,963 | ||||
Restricted cash | [1],[2] | 139,080 | 103,522 | ||||
Fair Value | [1] | 274,419 | 142,226 | ||||
Other loans held for investment at fair value | 2,079,300 | 0 | |||||
Other loans held for investment at fair value | 0 | ||||||
Loans held for sale by the Company at fair value | 0 | ||||||
Loans held for sale at fair value | 166,623 | 121,902 | |||||
Retail and certificate loans held for investment at fair value | 507,157 | 636,686 | [1],[2] | ||||
Other loans held for investment at fair value | [1],[2] | 42,485 | 49,954 | ||||
Accrued interest receivable | 0 | ||||||
Property, equipment and software, net | [1] | 95,313 | 96,641 | ||||
Operating lease assets | 84,931 | 0 | |||||
Intangible assets, net | 25,220 | 0 | |||||
Other Assets | [1],[2] | 279,195 | 187,399 | ||||
Total assets | [1] | 4,491,089 | 1,863,293 | ||||
Accounts payable | 10,742 | 0 | |||||
Accrued interest payable | 0 | ||||||
Present value of future minimum lease payments | 104,220 | 0 | |||||
Accrued expenses and other liabilities | 0 | ||||||
Payable to investors | 35,063 | 0 | |||||
Credit facilities and securities sold under repurchase agreements | 0 | ||||||
Retail notes, certificates and secured borrowings at fair value | [1] | 90,091 | 104,989 | ||||
Retail notes, certificates and secured borrowings at fair value | 507,203 | 636,774 | [1],[2] | ||||
Payable on Structured Program borrowings | 133,499 | 152,808 | [1],[2] | ||||
Other liabilities | [1],[2] | 265,066 | 244,551 | ||||
Total liabilities | [1] | 3,757,954 | 1,139,122 | ||||
Common stock, $0.01 par value; 180,000,000 shares authorized; 97,228,126 and 88,149,510 shares issued and outstanding, respectively | [1] | 972 | 881 | ||||
Additional paid-in capital | [1] | 1,563,865 | 1,508,020 | ||||
Accumulated deficit | [1] | (833,298) | (786,214) | ||||
Accumulated other comprehensive income | [1] | 1,688 | 1,484 | ||||
Total equity | 733,135 | [1] | 724,171 | [1] | $ 796,546 | $ 900,187 | |
Total liabilities and equity | [1] | 4,491,089 | 1,863,293 | ||||
Previously Reported | |||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||
Total cash and cash equivalents | 524,963 | ||||||
Cash and due from banks | 0 | ||||||
Interest-bearing deposits in banks | 0 | ||||||
Total cash and cash equivalents | 0 | ||||||
Restricted cash | 103,522 | ||||||
Fair Value | 142,226 | ||||||
Other loans held for investment at fair value | 636,686 | ||||||
Other loans held for investment at fair value | 49,954 | ||||||
Loans held for sale by the Company at fair value | 121,902 | ||||||
Loans held for sale at fair value | 0 | ||||||
Retail and certificate loans held for investment at fair value | 0 | ||||||
Other loans held for investment at fair value | 0 | ||||||
Accrued interest receivable | 5,205 | ||||||
Property, equipment and software, net | 96,641 | ||||||
Operating lease assets | 74,037 | ||||||
Intangible assets, net | 11,427 | ||||||
Other Assets | 96,730 | ||||||
Total assets | 1,863,293 | ||||||
Accounts payable | 3,698 | ||||||
Accrued interest payable | 4,572 | ||||||
Present value of future minimum lease payments | 94,538 | ||||||
Accrued expenses and other liabilities | 101,457 | ||||||
Payable to investors | 40,286 | ||||||
Credit facilities and securities sold under repurchase agreements | 104,989 | ||||||
Retail notes, certificates and secured borrowings at fair value | 0 | ||||||
Retail notes, certificates and secured borrowings at fair value | 636,774 | ||||||
Payable on Structured Program borrowings | 152,808 | ||||||
Other liabilities | 0 | ||||||
Total liabilities | 1,139,122 | ||||||
Common stock, $0.01 par value; 180,000,000 shares authorized; 97,228,126 and 88,149,510 shares issued and outstanding, respectively | 881 | ||||||
Additional paid-in capital | 1,508,020 | ||||||
Accumulated deficit | (786,214) | ||||||
Accumulated other comprehensive income | 1,484 | ||||||
Total equity | 724,171 | ||||||
Total liabilities and equity | 1,863,293 | ||||||
Revision of Prior Period, Reclassification, Adjustment | |||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||
Total cash and cash equivalents | (524,963) | ||||||
Cash and due from banks | [1] | 5,197 | |||||
Interest-bearing deposits in banks | [1] | 519,766 | |||||
Total cash and cash equivalents | 524,963 | ||||||
Restricted cash | 0 | ||||||
Fair Value | 0 | ||||||
Other loans held for investment at fair value | (636,686) | ||||||
Other loans held for investment at fair value | (49,954) | ||||||
Loans held for sale by the Company at fair value | (121,902) | ||||||
Loans held for sale at fair value | 121,902 | ||||||
Retail and certificate loans held for investment at fair value | 636,686 | ||||||
Other loans held for investment at fair value | 49,954 | ||||||
Accrued interest receivable | (5,205) | ||||||
Property, equipment and software, net | 0 | ||||||
Operating lease assets | (74,037) | ||||||
Intangible assets, net | (11,427) | ||||||
Other Assets | 90,669 | ||||||
Total assets | 0 | ||||||
Accounts payable | (3,698) | ||||||
Accrued interest payable | (4,572) | ||||||
Present value of future minimum lease payments | (94,538) | ||||||
Accrued expenses and other liabilities | (101,457) | ||||||
Payable to investors | (40,286) | ||||||
Credit facilities and securities sold under repurchase agreements | (104,989) | ||||||
Retail notes, certificates and secured borrowings at fair value | 104,989 | ||||||
Retail notes, certificates and secured borrowings at fair value | 0 | ||||||
Payable on Structured Program borrowings | 0 | ||||||
Other liabilities | 244,551 | ||||||
Total liabilities | 0 | ||||||
Common stock, $0.01 par value; 180,000,000 shares authorized; 97,228,126 and 88,149,510 shares issued and outstanding, respectively | 0 | ||||||
Additional paid-in capital | 0 | ||||||
Accumulated deficit | 0 | ||||||
Accumulated other comprehensive income | 0 | ||||||
Total equity | 0 | ||||||
Total liabilities and equity | 0 | ||||||
Fair Value, Measurements, Recurring | |||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||
Retail notes, certificates and secured borrowings at fair value | 507,203 | 636,774 | |||||
Loans Invested in by Company | Fair Value, Measurements, Recurring | |||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||
Loans held for sale by the Company at fair value | $ 42,485 | $ 49,954 | |||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||||
[2] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Business Acquisitions - Summa_2
Business Acquisitions - Summary of Income Statement Reclassification Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Interest expense | [1] | $ 26,084 | $ 45,213 | ||
Compensation and benefits | (5,321) | (89,786) | |||
Net interest income | 18,506 | 24,198 | |||
Gain on sales of loans | 8,323 | 14,261 | |||
Marketplace revenue | 81,727 | 102,477 | [1] | ||
Other non-interest income | 5,607 | [1] | 4,511 | ||
Total non-interest income | 87,334 | 106,988 | |||
Interest on loans held for sale | [1] | 5,157 | 27,376 | ||
Interest on retail and certificate loans held for investment at fair value | 20,262 | 35,376 | |||
Interest on other loans held for investment at fair value | 1,479 | 1,999 | |||
Interest on securities available for sale | [1] | 2,235 | 3,779 | ||
Other interest income | [1] | 156 | 881 | ||
Total interest income | 44,590 | 69,411 | [1] | ||
Interest on short-term borrowings | [1] | 1,264 | 7,398 | ||
Interest on retail notes, certificates and secured borrowings | [1] | 20,262 | 35,376 | ||
Interest on Structured Program borrowings | [1] | 3,208 | 2,299 | ||
Interest on other long-term debt | [1] | 336 | 140 | ||
Net interest income | [1] | 18,506 | 24,198 | ||
Total net revenue | [1] | 105,840 | 131,186 | ||
Provision for credit losses | 21,493 | 10,980 | [1] | ||
Compensation and benefits | 64,420 | [1] | 75,545 | ||
Marketing | 19,545 | [1] | 39,081 | ||
Equipment and software | 7,893 | [1] | 6,490 | ||
Occupancy | 6,900 | [1] | 6,813 | ||
Depreciation and amortization | 11,766 | [1] | 12,873 | ||
Professional services | 11,603 | [1] | 14,141 | ||
Other non-interest expense | 12,125 | [1] | 13,031 | ||
Total non-interest expense | 134,252 | [1] | 167,974 | ||
Loss before income tax expense | (49,905) | (47,768) | |||
Income tax expense | (2,821) | 319 | |||
Consolidated net loss | (47,084) | (48,087) | |||
LendingClub | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Total interest income | 0 | ||||
Compensation and benefits | 0 | ||||
Gain on sales of loans | 0 | ||||
Net investor revenue | 0 | ||||
Other revenue | 0 | ||||
Total net revenue | 0 | ||||
Marketplace revenue | 102,477 | ||||
Other non-interest income | 4,511 | ||||
Total non-interest income | 106,988 | ||||
Interest on loans held for sale | 27,376 | ||||
Interest on retail and certificate loans held for investment at fair value | 35,376 | ||||
Interest on other loans held for investment at fair value | 1,999 | ||||
Interest on securities available for sale | 3,779 | ||||
Other interest income | 881 | ||||
Total interest income | 69,411 | ||||
Interest on short-term borrowings | 7,398 | ||||
Interest on retail notes, certificates and secured borrowings | 35,376 | ||||
Interest on Structured Program borrowings | 2,299 | ||||
Interest on other long-term debt | 140 | ||||
Total interest expense(2) | 45,213 | ||||
Net interest income | 24,198 | ||||
Total net revenue | 131,186 | ||||
Provision for credit losses | 10,980 | ||||
Sales and marketing | 0 | ||||
Origination and servicing | 0 | ||||
Engineering and product development | 0 | ||||
Other general and administrative | 0 | ||||
Total operating expenses | 0 | ||||
Compensation and benefits | 75,545 | ||||
Marketing | 39,081 | ||||
Equipment and software | 6,490 | ||||
Occupancy | 6,813 | ||||
Depreciation and amortization | 12,873 | ||||
Professional services | 14,141 | ||||
Other non-interest expense | 13,031 | ||||
Total non-interest expense | 167,974 | ||||
Loss before income tax expense | (47,768) | ||||
Income tax expense | 319 | ||||
Consolidated net loss | (48,087) | ||||
Transaction fees | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Transaction fees | $ 55,559 | 136,243 | |||
Transaction fees | LendingClub | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Transaction fees | 0 | ||||
Investor fees | LendingClub | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Transaction fees | 0 | ||||
Previously Reported | LendingClub | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Total interest income | 69,411 | ||||
Interest expense | 44,241 | ||||
Compensation and benefits | (101,738) | ||||
Net interest income | (76,568) | ||||
Gain on sales of loans | 14,261 | ||||
Net investor revenue | (20,548) | ||||
Other revenue | 4,511 | ||||
Total net revenue | 120,206 | ||||
Marketplace revenue | 0 | ||||
Other non-interest income | 0 | ||||
Total non-interest income | 0 | ||||
Interest on loans held for sale | 0 | ||||
Interest on retail and certificate loans held for investment at fair value | 0 | ||||
Interest on other loans held for investment at fair value | 0 | ||||
Interest on securities available for sale | 0 | ||||
Other interest income | 0 | ||||
Total interest income | 0 | ||||
Interest on short-term borrowings | 0 | ||||
Interest on retail notes, certificates and secured borrowings | 0 | ||||
Interest on Structured Program borrowings | 0 | ||||
Interest on other long-term debt | 0 | ||||
Total net revenue | 0 | ||||
Provision for credit losses | 0 | ||||
Sales and marketing | 49,784 | ||||
Origination and servicing | 20,994 | ||||
Engineering and product development | 38,710 | ||||
Other general and administrative | 58,486 | ||||
Total operating expenses | 167,974 | ||||
Compensation and benefits | 0 | ||||
Marketing | 0 | ||||
Equipment and software | 0 | ||||
Occupancy | 0 | ||||
Depreciation and amortization | 0 | ||||
Professional services | 0 | ||||
Other non-interest expense | 0 | ||||
Total non-interest expense | 0 | ||||
Loss before income tax expense | (47,768) | ||||
Income tax expense | 319 | ||||
Consolidated net loss | (48,087) | ||||
Previously Reported | Transaction fees | LendingClub | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Transaction fees | 136,243 | ||||
Previously Reported | Investor fees | LendingClub | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Transaction fees | 41,759 | ||||
Revision of Prior Period, Reclassification, Adjustment | LendingClub | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Total interest income | (69,411) | ||||
Interest expense | (44,241) | ||||
Compensation and benefits | 101,738 | ||||
Net interest income | 76,568 | ||||
Gain on sales of loans | (14,261) | ||||
Net investor revenue | 20,548 | ||||
Other revenue | (4,511) | ||||
Total net revenue | (120,206) | ||||
Marketplace revenue | 102,477 | ||||
Other non-interest income | 4,511 | ||||
Total non-interest income | 106,988 | ||||
Interest on loans held for sale | 27,376 | ||||
Interest on retail and certificate loans held for investment at fair value | 35,376 | ||||
Interest on other loans held for investment at fair value | 1,999 | ||||
Interest on securities available for sale | 3,779 | ||||
Other interest income | 881 | ||||
Total interest income | 69,411 | ||||
Interest on short-term borrowings | 7,398 | ||||
Interest on retail notes, certificates and secured borrowings | 35,376 | ||||
Interest on Structured Program borrowings | 2,299 | ||||
Interest on other long-term debt | 140 | ||||
Total interest expense(2) | 45,213 | ||||
Net interest income | 24,198 | ||||
Total net revenue | 131,186 | ||||
Provision for credit losses | 10,980 | ||||
Sales and marketing | (49,784) | ||||
Origination and servicing | (20,994) | ||||
Engineering and product development | (38,710) | ||||
Other general and administrative | (58,486) | ||||
Total operating expenses | (167,974) | ||||
Compensation and benefits | 75,545 | ||||
Marketing | 39,081 | ||||
Equipment and software | 6,490 | ||||
Occupancy | 6,813 | ||||
Depreciation and amortization | 12,873 | ||||
Professional services | 14,141 | ||||
Other non-interest expense | 13,031 | ||||
Total non-interest expense | 167,974 | ||||
Loss before income tax expense | 0 | ||||
Income tax expense | 0 | ||||
Consolidated net loss | 0 | ||||
Revision of Prior Period, Reclassification, Adjustment | Transaction fees | LendingClub | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Transaction fees | (136,243) | ||||
Revision of Prior Period, Reclassification, Adjustment | Investor fees | LendingClub | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Transaction fees | $ (41,759) | ||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Marketplace Revenue - Component
Marketplace Revenue - Components of Marketplace Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Gain on sales of loans | $ 8,323 | $ 14,261 |
Compensation and benefits | (5,321) | (89,786) |
Total marketplace revenue | 81,727 | 102,477 |
Transaction fees | ||
Disaggregation of Revenue [Line Items] | ||
Transaction fees | 55,559 | 136,243 |
Servicing Fees | ||
Disaggregation of Revenue [Line Items] | ||
Transaction fees | $ 23,166 | $ 41,759 |
Marketplace Revenue - Disaggreg
Marketplace Revenue - Disaggregation of Revenue by Source (Details) - Transferred over Time - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Transaction fees | $ 24,996 | $ 137,857 |
Transaction fees | ||
Disaggregation of Revenue [Line Items] | ||
Transaction fees | 22,402 | 136,243 |
Referral fees | ||
Disaggregation of Revenue [Line Items] | ||
Transaction fees | $ 2,594 | $ 1,614 |
Marketplace Revenue - Narrative
Marketplace Revenue - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Bad debt expense | $ 0 | $ 0 |
Net Income (Loss) Per Share - B
Net Income (Loss) Per Share - Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Common Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Allocation of undistributed consolidated net loss | $ (45,776) | $ (45,240) | |
Deemed dividend | 0 | (50,204) | |
Net income (loss) attributable to stockholders | $ (45,776) | $ (95,444) | |
Weighted-average common shares - Basic and Diluted (shares) | [1] | 92,666,169 | 86,505,560 |
Net loss per share attributable to common stockholders: | |||
Net income (loss) per share – Basic and Diluted ($ per share) | [1] | $ (0.49) | $ (1.10) |
Preferred Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Allocation of undistributed consolidated net loss | $ (1,308) | $ (2,847) | |
Deemed dividend | 0 | 50,204 | |
Net income (loss) attributable to stockholders | $ (1,308) | $ 47,357 | |
Weighted-average common shares - Basic and Diluted (shares) | [1] | 2,648,758 | 2,579,710 |
Net loss per share attributable to common stockholders: | |||
Net income (loss) per share – Basic and Diluted ($ per share) | [1] | $ (0.49) | $ 18.36 |
[1] | See “ Notes to Condensed Consolidated Financial Statements – Note 4. Net Income (Loss) Per Share ” for additional information. |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Conversion of Shares (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 20, 2020 | Mar. 31, 2021 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 |
One-time cash payment | $ 50.2 | |
Series A Preferred Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Preferred stock, par value ($ per share) | $ 0.01 | |
Largest Stockholder | Series A Preferred Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Conversion of stock, shares issued (in shares) | 195,628 | |
Largest Stockholder | Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Conversion of stock, shares converted | 19,562,881 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Shares Excluded from Calculation of Earnings (Loss) per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average common shares excluded (shares) | 4,488,316 | 2,893,763 |
Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average common shares excluded (shares) | 2,648,758 | 2,579,710 |
RSUs and PBRSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average common shares excluded (shares) | 1,468,191 | 30,852 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average common shares excluded (shares) | 371,367 | 283,201 |
Securities Available for Sale -
Securities Available for Sale - Amortized cost/fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | $ 273,331 | $ 159,164 | |||
Gross Unrealized Gains | 5,377 | 2,771 | |||
Gross Unrealized Losses | (3,375) | (973) | |||
Allowance for Credit Losses | (914) | (18,736) | $ (18,835) | $ 0 | |
Fair Value | [1] | 274,419 | 142,226 | ||
Securities pledged as collateral at fair value | 114,900 | 133,500 | |||
U.S. agency residential mortgage-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 72,348 | ||||
Gross Unrealized Gains | 19 | ||||
Gross Unrealized Losses | (1,637) | ||||
Allowance for Credit Losses | 0 | ||||
Fair Value | 70,730 | ||||
Asset-backed senior securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 62,894 | 75,332 | |||
Gross Unrealized Gains | 59 | 67 | |||
Gross Unrealized Losses | 0 | (27) | |||
Allowance for Credit Losses | 0 | 0 | |||
Fair Value | 62,953 | 75,372 | |||
Securities pledged as collateral at fair value | 238,300 | 133,500 | |||
CLUB Certificate asset-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 40,741 | 54,525 | |||
Gross Unrealized Gains | 1,515 | 576 | |||
Gross Unrealized Losses | (241) | (772) | |||
Allowance for Credit Losses | (48) | (4,190) | (8,638) | 0 | |
Fair Value | 41,967 | 50,139 | |||
Other asset-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 29,858 | ||||
Gross Unrealized Gains | 79 | ||||
Gross Unrealized Losses | (137) | ||||
Allowance for Credit Losses | 0 | ||||
Fair Value | 29,800 | 200 | |||
Commercial mortgage-backed securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 28,856 | ||||
Gross Unrealized Gains | 12 | ||||
Gross Unrealized Losses | (428) | ||||
Allowance for Credit Losses | 0 | ||||
Fair Value | 28,440 | ||||
U.S. agency securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 20,078 | ||||
Gross Unrealized Gains | 5 | ||||
Gross Unrealized Losses | (799) | ||||
Allowance for Credit Losses | 0 | ||||
Fair Value | 19,284 | ||||
Asset-backed subordinated securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 15,044 | 29,107 | |||
Gross Unrealized Gains | 3,688 | 2,128 | |||
Gross Unrealized Losses | (79) | (174) | |||
Allowance for Credit Losses | (866) | (14,546) | $ (10,197) | $ 0 | |
Fair Value | 17,787 | 16,515 | |||
Municipal securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 3,312 | ||||
Gross Unrealized Gains | 0 | ||||
Gross Unrealized Losses | (54) | ||||
Allowance for Credit Losses | 0 | ||||
Fair Value | 3,258 | ||||
Other securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Amortized Cost | 200 | 200 | |||
Gross Unrealized Gains | 0 | 0 | |||
Gross Unrealized Losses | 0 | 0 | |||
Allowance for Credit Losses | 0 | 0 | |||
Fair Value | 200 | 200 | |||
Asset-backed securities, securitized loans and receivables, subject to restrictions on transfer | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fair Value | $ 91,900 | $ 119,300 | |||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Securities Available for Sale_2
Securities Available for Sale - Continuous loss (Details) $ in Thousands | Mar. 31, 2021USD ($)position | Dec. 31, 2020USD ($)position |
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 119,485 | $ 26,678 |
Unrealized Losses, Less than 12 months | (3,134) | (855) |
Fair Value, 12 months or longer | 12,345 | 6,052 |
Unrealized Losses, 12 months or longer | (241) | (118) |
Fair Value | 131,830 | 32,730 |
Unrealized Losses | $ (3,375) | $ (973) |
Number of positions with unrealized losses | position | 124 | 55 |
U.S. agency residential mortgage-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 63,011 | |
Unrealized Losses, Less than 12 months | (1,637) | |
Fair Value, 12 months or longer | 0 | |
Unrealized Losses, 12 months or longer | 0 | |
Fair Value | 63,011 | |
Unrealized Losses | (1,637) | |
Asset-backed securities related to Structured Program transactions | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 722 | $ 26,678 |
Unrealized Losses, Less than 12 months | (79) | (855) |
Fair Value, 12 months or longer | 12,345 | 6,052 |
Unrealized Losses, 12 months or longer | (241) | (118) |
Fair Value | 13,067 | 32,730 |
Unrealized Losses | (320) | $ (973) |
Municipal securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 3,258 | |
Unrealized Losses, Less than 12 months | (54) | |
Fair Value, 12 months or longer | 0 | |
Unrealized Losses, 12 months or longer | 0 | |
Fair Value | 3,258 | |
Unrealized Losses | (54) | |
Other asset-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 17,534 | |
Unrealized Losses, Less than 12 months | (137) | |
Fair Value, 12 months or longer | 0 | |
Unrealized Losses, 12 months or longer | 0 | |
Fair Value | 17,534 | |
Unrealized Losses | (137) | |
U.S. agency securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 10,098 | |
Unrealized Losses, Less than 12 months | (799) | |
Fair Value, 12 months or longer | 0 | |
Unrealized Losses, 12 months or longer | 0 | |
Fair Value | 10,098 | |
Unrealized Losses | (799) | |
Commercial mortgage-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 24,862 | |
Unrealized Losses, Less than 12 months | (428) | |
Fair Value, 12 months or longer | 0 | |
Unrealized Losses, 12 months or longer | 0 | |
Fair Value | 24,862 | |
Unrealized Losses | $ (428) |
Securities Available for Sale_3
Securities Available for Sale - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning | $ (18,736) | $ 0 |
Impairment on securities available for sale | 2,470 | (10,980) |
Charge-offs | 15,352 | |
Allowance arising from PCD financial assets | (7,855) | |
Allowance for credit losses, ending | (914) | (18,835) |
CLUB Certificate asset-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning | (4,190) | 0 |
Impairment on securities available for sale | 188 | (4,684) |
Charge-offs | 3,954 | |
Allowance arising from PCD financial assets | (3,954) | |
Allowance for credit losses, ending | (48) | (8,638) |
Asset-backed subordinated securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning | (14,546) | 0 |
Impairment on securities available for sale | 2,282 | (6,296) |
Charge-offs | 11,398 | |
Allowance arising from PCD financial assets | (3,901) | |
Allowance for credit losses, ending | $ (866) | $ (10,197) |
Securities Available for Sale_4
Securities Available for Sale - Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Amortized cost | |||
Amortized cost, within 1 year | $ 200 | ||
Amortized cost, due after 5 years through 10 years | 9,599 | ||
Amortized cost, due after 10 years | 144,853 | ||
Amortized Cost | 273,331 | $ 159,164 | |
Fair value | |||
Fair value, within 1 year | 200 | ||
Fair value, due after 5 years through 10 years | 9,490 | ||
Fair value, due after 10 years | 142,022 | ||
Fair value | [1] | $ 274,419 | 142,226 |
Weighted- average Yield, due within 1 year | 0.02% | ||
Weighted- average Yield, due after 5 years through 10 years | 0.97% | ||
Weighted- average Yield, due after 10 years | 1.06% | ||
Weighted- average Yield | 3.22% | ||
Level 2 Inputs | |||
Fair value | |||
Fair value | $ 214,665 | 75,572 | |
U.S. agency residential mortgage-backed securities | |||
Amortized cost | |||
Amortized cost, due after 5 years through 10 years | 449 | ||
Amortized cost, due after 10 years | 71,899 | ||
Fair value | |||
Fair value, due after 5 years through 10 years | 446 | ||
Fair value, due after 10 years | 70,284 | ||
Fair value | 70,730 | ||
U.S. agency residential mortgage-backed securities | Level 2 Inputs | |||
Fair value | |||
Fair value | 70,730 | ||
Other asset-backed securities | |||
Amortized cost | |||
Amortized cost, within 1 year | 200 | ||
Amortized cost, due after 5 years through 10 years | 1,084 | ||
Amortized cost, due after 10 years | 28,774 | ||
Amortized Cost | 29,858 | ||
Fair value | |||
Fair value, within 1 year | 200 | ||
Fair value, due after 5 years through 10 years | 1,084 | ||
Fair value, due after 10 years | 28,716 | ||
Fair value | 29,800 | 200 | |
Other asset-backed securities | Level 2 Inputs | |||
Fair value | |||
Fair value | $ 200 | ||
Commercial mortgage-backed securities | |||
Amortized cost | |||
Amortized cost, due after 5 years through 10 years | 3,503 | ||
Amortized cost, due after 10 years | 25,353 | ||
Amortized Cost | 28,856 | ||
Fair value | |||
Fair value, due after 5 years through 10 years | 3,403 | ||
Fair value, due after 10 years | 25,037 | ||
Fair value | 28,440 | ||
Commercial mortgage-backed securities | Level 2 Inputs | |||
Fair value | |||
Fair value | 28,440 | ||
U.S. agency securities | |||
Amortized cost | |||
Amortized cost, due after 5 years through 10 years | 4,092 | ||
Amortized cost, due after 10 years | 15,986 | ||
Amortized Cost | 20,078 | ||
Fair value | |||
Fair value, due after 5 years through 10 years | 4,094 | ||
Fair value, due after 10 years | 15,190 | ||
Fair value | 19,284 | ||
Municipal securities | |||
Amortized cost | |||
Amortized cost, due after 5 years through 10 years | 471 | ||
Amortized cost, due after 10 years | 2,841 | ||
Amortized Cost | 3,312 | ||
Fair value | |||
Fair value, due after 5 years through 10 years | 463 | ||
Fair value, due after 10 years | 2,795 | ||
Fair value | 3,258 | ||
Municipal securities | Level 2 Inputs | |||
Fair value | |||
Fair value | 3,258 | ||
Asset-backed securities related to Structured Program transactions | |||
Amortized cost | |||
Amortized Cost | 118,679 | ||
Fair value | |||
Fair value | $ 122,707 | ||
Weighted- average Yield | 6.04% | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Securities Available for Sale_5
Securities Available for Sale - Securities Purchased with Credit Deterioration (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Purchase price of PCD securities at acquisition | $ 23,043 | |
Allowance for credit losses on PCD securities at acquisition | 7,885 | |
Par value of acquired PCD securities at acquisition | $ 0 | $ 30,928 |
Securities Available for Sale_6
Securities Available for Sale - Additional information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Securities Available-for-sale [Line Items] | ||
Sale of asset-backed securities | $ 106,192,000 | $ 2,396,000 |
Realized gains (losses) on sales of securities available for sale | (244,000) | 1,000 |
Asset-backed securities related to Structured Program transactions | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Credit loss (recovery) expense | (2,500,000) | 11,000,000 |
Other asset-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Realized gains (losses) on sales of securities available for sale | $ 0 | |
Other asset-backed securities | Depositor | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Sale of asset-backed securities | $ 1,000,000,000 |
Securities Available for Sale_7
Securities Available for Sale - Proceeds and Gross Realized Gains and Losses from Sales of Other Securities Available for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 106,192 | $ 2,396 |
Gross realized gains | 708 | 3 |
Gross realized losses | $ (952) | $ (2) |
Loans and Leases Held for Inv_3
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses - Narrative (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 0 | |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 9,000 |
Loans and Leases Held for Inv_4
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses - Schedule of Components of Portfolio Segment by Class of Financing Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | [1] | $ 2,115,432 | $ 0 |
Allowance for loan and lease losses | [1] | (36,132) | 0 |
Loans and leases held for investment, net | [1] | 2,079,300 | 0 |
Consumer Portfolio Segment | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | 872,384 | ||
Allowance for loan and lease losses | (19,785) | 0 | |
Consumer Portfolio Segment | Unsecured personal | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | 321,104 | ||
Consumer Portfolio Segment | Residential mortgages | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | 164,002 | ||
Consumer Portfolio Segment | Secured consumer | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | 387,244 | ||
Consumer Portfolio Segment | Other consumer | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | 34 | ||
Commercial Portfolio Segment | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | 1,243,048 | ||
Allowance for loan and lease losses | (16,347) | $ 0 | |
Commercial Portfolio Segment | Equipment finance | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | 145,885 | ||
Commercial Portfolio Segment | Commercial real estate | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | 302,445 | ||
Commercial Portfolio Segment | Commercial and industrial | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | 794,718 | ||
Commercial Portfolio Segment | Commercial and industrial | Paycheck Protection Program, CARES Act | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans and leases held for investment | $ 664,400 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Loans Held For Investment, Loan
Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings - Allowance For Credit Losses (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Jan. 31, 2021 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan and lease losses, beginning of period | [1] | $ 0 | ||
Credit loss expense for loans and leases held for investment | 23,553 | |||
Initial allowance for PCD loans acquired during the period | 12,440 | |||
Charge-offs, gross | $ 18,000 | 0 | ||
Charge-offs, net of recoveries | $ 12,400 | 139 | ||
Allowance for loan and lease losses, end of period | [1] | 36,132 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Reserve for unfunded lending commitments, beginning of period | 0 | |||
Credit loss expense for unfunded lending commitments | 410 | |||
Reserve for unfunded lending commitments, end of period | 410 | |||
Initial allowance for PCD assets acquired during the period at acquisition date | 30,378 | |||
Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan and lease losses, beginning of period | 0 | |||
Credit loss expense for loans and leases held for investment | 19,182 | |||
Initial allowance for PCD loans acquired during the period | 603 | |||
Charge-offs, gross | 0 | |||
Charge-offs, net of recoveries | 0 | |||
Allowance for loan and lease losses, end of period | 19,785 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Reserve for unfunded lending commitments, beginning of period | 0 | |||
Credit loss expense for unfunded lending commitments | 6 | |||
Reserve for unfunded lending commitments, end of period | 6 | |||
Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan and lease losses, beginning of period | 0 | |||
Credit loss expense for loans and leases held for investment | 4,371 | |||
Initial allowance for PCD loans acquired during the period | 11,837 | |||
Charge-offs, gross | 0 | |||
Charge-offs, net of recoveries | 139 | |||
Allowance for loan and lease losses, end of period | 16,347 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Reserve for unfunded lending commitments, beginning of period | 0 | |||
Credit loss expense for unfunded lending commitments | 404 | |||
Reserve for unfunded lending commitments, end of period | $ 404 | |||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Loans Held For Investment, Lo_2
Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Term Loans and Leases by Origination Year | |||
Total | [1] | $ 2,115,432 | $ 0 |
Consumer Portfolio Segment | |||
Term Loans and Leases by Origination Year | |||
2021 | 382,070 | ||
2020 | 180,490 | ||
2019 | 114,569 | ||
2018 | 79,180 | ||
2017 | 28,673 | ||
Prior | 86,098 | ||
Within Revolving Period | 1,304 | ||
Total | 872,384 | ||
Consumer Portfolio Segment | Unsecured personal | |||
Term Loans and Leases by Origination Year | |||
2021 | 321,104 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 321,104 | ||
Consumer Portfolio Segment | Residential mortgages | |||
Term Loans and Leases by Origination Year | |||
2021 | 5,484 | ||
2020 | 41,480 | ||
2019 | 35,878 | ||
2018 | 13,997 | ||
2017 | 5,458 | ||
Prior | 60,410 | ||
Within Revolving Period | 1,295 | ||
Total | 164,002 | ||
Consumer Portfolio Segment | Secured consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 55,457 | ||
2020 | 139,010 | ||
2019 | 78,691 | ||
2018 | 65,183 | ||
2017 | 23,215 | ||
Prior | 25,688 | ||
Within Revolving Period | 0 | ||
Total | 387,244 | ||
Consumer Portfolio Segment | Other consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 25 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 9 | ||
Total | 34 | ||
Commercial Portfolio Segment | |||
Term Loans and Leases by Origination Year | |||
2021 | 274,356 | ||
2020 | 570,214 | ||
2019 | 139,310 | ||
2018 | 88,376 | ||
2017 | 53,621 | ||
Prior | 110,952 | ||
Within Revolving Period | 6,219 | ||
Total | 1,243,048 | ||
Commercial Portfolio Segment | Equipment finance | |||
Term Loans and Leases by Origination Year | |||
2021 | 14,126 | ||
2020 | 44,931 | ||
2019 | 38,224 | ||
2018 | 26,190 | ||
2017 | 8,434 | ||
Prior | 13,980 | ||
Within Revolving Period | 0 | ||
Total | 145,885 | ||
Commercial Portfolio Segment | Equipment finance | Pass | |||
Term Loans and Leases by Origination Year | |||
2021 | 14,126 | ||
2020 | 44,674 | ||
2019 | 38,224 | ||
2018 | 25,329 | ||
2017 | 8,434 | ||
Prior | 13,980 | ||
Within Revolving Period | 0 | ||
Total | 144,767 | ||
Commercial Portfolio Segment | Equipment finance | Special mention | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 257 | ||
2019 | 0 | ||
2018 | 861 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 1,118 | ||
Commercial Portfolio Segment | Equipment finance | Substandard | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
Commercial Portfolio Segment | Equipment finance | Doubtful | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
Commercial Portfolio Segment | Equipment finance | Loss | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
Commercial Portfolio Segment | Commercial real estate | |||
Term Loans and Leases by Origination Year | |||
2021 | 10,601 | ||
2020 | 64,503 | ||
2019 | 67,591 | ||
2018 | 47,571 | ||
2017 | 25,495 | ||
Prior | 82,901 | ||
Within Revolving Period | 3,783 | ||
Total | 302,445 | ||
Commercial Portfolio Segment | Commercial real estate | Pass | |||
Term Loans and Leases by Origination Year | |||
2021 | 10,601 | ||
2020 | 56,178 | ||
2019 | 67,315 | ||
2018 | 44,612 | ||
2017 | 25,050 | ||
Prior | 69,509 | ||
Within Revolving Period | 3,783 | ||
Total | 277,048 | ||
Commercial Portfolio Segment | Commercial real estate | Special mention | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 8,325 | ||
2019 | 276 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 822 | ||
Within Revolving Period | 0 | ||
Total | 9,423 | ||
Commercial Portfolio Segment | Commercial real estate | Substandard | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 2,959 | ||
2017 | 445 | ||
Prior | 12,363 | ||
Within Revolving Period | 0 | ||
Total | 15,767 | ||
Commercial Portfolio Segment | Commercial real estate | Doubtful | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
Commercial Portfolio Segment | Commercial real estate | Loss | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 207 | ||
Within Revolving Period | 0 | ||
Total | 207 | ||
Commercial Portfolio Segment | Commercial and industrial | |||
Term Loans and Leases by Origination Year | |||
2021 | 249,629 | ||
2020 | 460,780 | ||
2019 | 33,495 | ||
2018 | 14,615 | ||
2017 | 19,692 | ||
Prior | 14,071 | ||
Within Revolving Period | 2,436 | ||
Total | 794,718 | ||
Commercial Portfolio Segment | Commercial and industrial | Paycheck Protection Program, CARES Act | |||
Term Loans and Leases by Origination Year | |||
Total | 664,400 | ||
Commercial Portfolio Segment | Commercial and industrial | Pass | |||
Term Loans and Leases by Origination Year | |||
2021 | 249,629 | ||
2020 | 459,662 | ||
2019 | 31,010 | ||
2018 | 11,571 | ||
2017 | 16,743 | ||
Prior | 11,107 | ||
Within Revolving Period | 2,436 | ||
Total | 782,158 | ||
Commercial Portfolio Segment | Commercial and industrial | Special mention | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 2,352 | ||
2018 | 704 | ||
2017 | 1,064 | ||
Prior | 110 | ||
Within Revolving Period | 0 | ||
Total | 4,230 | ||
Commercial Portfolio Segment | Commercial and industrial | Substandard | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 1,118 | ||
2019 | 133 | ||
2018 | 2,340 | ||
2017 | 1,885 | ||
Prior | 1,791 | ||
Within Revolving Period | 0 | ||
Total | 7,267 | ||
Commercial Portfolio Segment | Commercial and industrial | Doubtful | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
Commercial Portfolio Segment | Commercial and industrial | Loss | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 1,063 | ||
Within Revolving Period | 0 | ||
Total | 1,063 | ||
Current | Consumer Portfolio Segment | Unsecured personal | |||
Term Loans and Leases by Origination Year | |||
2021 | 321,104 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 321,104 | ||
Current | Consumer Portfolio Segment | Residential mortgages | |||
Term Loans and Leases by Origination Year | |||
2021 | 5,484 | ||
2020 | 41,480 | ||
2019 | 34,515 | ||
2018 | 13,319 | ||
2017 | 5,109 | ||
Prior | 59,215 | ||
Within Revolving Period | 1,295 | ||
Total | 160,417 | ||
Current | Consumer Portfolio Segment | Secured consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 55,457 | ||
2020 | 139,010 | ||
2019 | 77,488 | ||
2018 | 62,528 | ||
2017 | 22,299 | ||
Prior | 25,688 | ||
Within Revolving Period | 0 | ||
Total | 382,470 | ||
Current | Consumer Portfolio Segment | Other consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 25 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 9 | ||
Total | 34 | ||
Current | Commercial Portfolio Segment | |||
Term Loans and Leases by Origination Year | |||
Total | 1,238,882 | ||
Current | Commercial Portfolio Segment | Equipment finance | |||
Term Loans and Leases by Origination Year | |||
Total | 145,885 | ||
Current | Commercial Portfolio Segment | Commercial real estate | |||
Term Loans and Leases by Origination Year | |||
Total | 300,350 | ||
Current | Commercial Portfolio Segment | Commercial and industrial | |||
Term Loans and Leases by Origination Year | |||
Total | 792,647 | ||
30-59 days past due | Consumer Portfolio Segment | Unsecured personal | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
30-59 days past due | Consumer Portfolio Segment | Residential mortgages | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 94 | ||
Prior | 358 | ||
Within Revolving Period | 0 | ||
Total | 452 | ||
30-59 days past due | Consumer Portfolio Segment | Secured consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
30-59 days past due | Consumer Portfolio Segment | Other consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
30-59 days past due | Commercial Portfolio Segment | |||
Term Loans and Leases by Origination Year | |||
Total | 2,234 | ||
30-59 days past due | Commercial Portfolio Segment | Equipment finance | |||
Term Loans and Leases by Origination Year | |||
Total | 0 | ||
30-59 days past due | Commercial Portfolio Segment | Commercial real estate | |||
Term Loans and Leases by Origination Year | |||
Total | 1,226 | ||
30-59 days past due | Commercial Portfolio Segment | Commercial and industrial | |||
Term Loans and Leases by Origination Year | |||
Total | 1,008 | ||
60-89 days past due | Consumer Portfolio Segment | Unsecured personal | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
60-89 days past due | Consumer Portfolio Segment | Residential mortgages | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 393 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 393 | ||
60-89 days past due | Consumer Portfolio Segment | Secured consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
60-89 days past due | Consumer Portfolio Segment | Other consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
60-89 days past due | Commercial Portfolio Segment | |||
Term Loans and Leases by Origination Year | |||
Total | 0 | ||
60-89 days past due | Commercial Portfolio Segment | Equipment finance | |||
Term Loans and Leases by Origination Year | |||
Total | 0 | ||
60-89 days past due | Commercial Portfolio Segment | Commercial real estate | |||
Term Loans and Leases by Origination Year | |||
Total | 0 | ||
60-89 days past due | Commercial Portfolio Segment | Commercial and industrial | |||
Term Loans and Leases by Origination Year | |||
Total | 0 | ||
90 or more days past due | Consumer Portfolio Segment | Unsecured personal | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
90 or more days past due | Consumer Portfolio Segment | Residential mortgages | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 970 | ||
2018 | 678 | ||
2017 | 255 | ||
Prior | 837 | ||
Within Revolving Period | 0 | ||
Total | 2,740 | ||
90 or more days past due | Consumer Portfolio Segment | Secured consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 1,203 | ||
2018 | 2,655 | ||
2017 | 916 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 4,774 | ||
90 or more days past due | Consumer Portfolio Segment | Other consumer | |||
Term Loans and Leases by Origination Year | |||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
Prior | 0 | ||
Within Revolving Period | 0 | ||
Total | 0 | ||
90 or more days past due | Commercial Portfolio Segment | |||
Term Loans and Leases by Origination Year | |||
Total | 1,932 | ||
90 or more days past due | Commercial Portfolio Segment | Equipment finance | |||
Term Loans and Leases by Origination Year | |||
Total | 0 | ||
90 or more days past due | Commercial Portfolio Segment | Commercial real estate | |||
Term Loans and Leases by Origination Year | |||
Total | 869 | ||
90 or more days past due | Commercial Portfolio Segment | Commercial and industrial | |||
Term Loans and Leases by Origination Year | |||
Total | $ 1,063 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Loans Held For Investment, Lo_3
Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings - Nonaccrual and Past Due Table (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | $ 11,937 |
Nonaccrual with no related ACL | 9,309 |
Consumer Portfolio Segment | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 8,157 |
Nonaccrual with no related ACL | 6,593 |
Consumer Portfolio Segment | Unsecured personal | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 0 |
Nonaccrual with no related ACL | 0 |
Consumer Portfolio Segment | Residential mortgages | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 3,383 |
Nonaccrual with no related ACL | 2,735 |
Consumer Portfolio Segment | Secured consumer | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 4,774 |
Nonaccrual with no related ACL | 3,858 |
Consumer Portfolio Segment | Other consumer | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 0 |
Nonaccrual with no related ACL | 0 |
Commercial Portfolio Segment | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 3,780 |
Nonaccrual with no related ACL | 2,716 |
Commercial Portfolio Segment | Equipment finance | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 0 |
Nonaccrual with no related ACL | 0 |
Commercial Portfolio Segment | Commercial real estate | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 2,420 |
Nonaccrual with no related ACL | 1,653 |
Commercial Portfolio Segment | Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 1,360 |
Nonaccrual with no related ACL | $ 1,063 |
Loans Held For Investment, Lo_4
Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings - PCD Loans Acquired (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Jan. 31, 2021 | Mar. 31, 2021 |
Loans and Leases Receivable Disclosure [Abstract] | |||
Purchase price | $ 337,118 | ||
Initial allowance for PCD assets acquired during the period at acquisition date | 30,378 | ||
Discount attributable to other factors | 12,204 | ||
Par value | 379,700 | ||
Charge-offs, gross | $ 18,000 | 0 | |
Charge-offs, net of recoveries | $ 12,400 | $ 139 |
Securitizations and Variable _3
Securitizations and Variable Interest Entities - Summary of Select Information Related to VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | ||
Assets | |||||
Restricted cash | [1],[2] | $ 139,080 | $ 103,522 | ||
Securities available for sale at fair value | [1] | 274,419 | 142,226 | ||
Loans held for sale at fair value | 2,079,300 | 0 | |||
Retail and certificate loans held for investment at fair value | 507,157 | 636,686 | [1],[2] | ||
Other loans held for investment at fair value | 0 | ||||
Other assets | [1],[2] | 279,195 | 187,399 | ||
Liabilities | |||||
Retail notes, certificates and secured borrowings at fair value | 507,203 | 636,774 | [1],[2] | ||
Payable on Structured Program borrowings | 133,499 | 152,808 | [1],[2] | ||
Other liabilities | [1],[2] | 265,066 | 244,551 | ||
Total liabilities | [1] | 3,757,954 | 1,139,122 | ||
Consolidated VIEs | |||||
Assets | |||||
Restricted cash | 17,536 | 15,983 | |||
Securities available for sale at fair value | 0 | 0 | |||
Loans held for sale at fair value | 83,926 | ||||
Retail and certificate loans held for investment at fair value | 36,277 | 52,620 | $ 36,277 | ||
Other loans held for investment at fair value | 42,261 | 50,102 | |||
Other assets | 936 | 1,270 | |||
Total assets | 180,936 | 218,165 | 180,936 | ||
Liabilities | |||||
Retail notes, certificates and secured borrowings at fair value | 36,277 | 52,620 | |||
Payable on Structured Program borrowings | 133,499 | 152,808 | |||
Other liabilities | 522 | 729 | |||
Total liabilities | 170,298 | 206,157 | |||
Total net assets | 10,638 | 12,008 | |||
Unconsolidated VIEs | |||||
Assets | |||||
Restricted cash | 0 | 0 | |||
Securities available for sale at fair value | 122,707 | 142,026 | |||
Loans held for sale at fair value | 0 | 0 | |||
Retail and certificate loans held for investment at fair value | 0 | 0 | |||
Other loans held for investment at fair value | 0 | 0 | |||
Other assets | 27,701 | 32,865 | |||
Total assets | 150,408 | 174,891 | |||
Liabilities | |||||
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |||
Payable on Structured Program borrowings | 0 | 0 | |||
Other liabilities | 0 | 0 | |||
Total liabilities | 0 | 0 | |||
Total net assets | 150,408 | 174,891 | |||
Total | |||||
Assets | |||||
Restricted cash | 17,536 | 15,983 | |||
Securities available for sale at fair value | 122,707 | 142,026 | |||
Loans held for sale at fair value | 83,926 | 98,190 | |||
Retail and certificate loans held for investment at fair value | 52,620 | $ 36,277 | |||
Other loans held for investment at fair value | 42,261 | 50,102 | |||
Other assets | 28,637 | 34,135 | |||
Total assets | 331,344 | 393,056 | |||
Liabilities | |||||
Retail notes, certificates and secured borrowings at fair value | 36,277 | 52,620 | |||
Payable on Structured Program borrowings | 133,499 | 152,808 | |||
Other liabilities | 522 | 729 | |||
Total liabilities | 170,298 | 206,157 | |||
Total net assets | $ 161,046 | $ 186,899 | |||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||
[2] | 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 | Mar. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 4,491,089 | $ 1,863,293 |
Liabilities | [1] | (3,757,954) | (1,139,122) |
Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 180,936 | 218,165 | |
Liabilities | (170,298) | (206,157) | |
Net Assets | 10,638 | 12,008 | |
LC Trust | Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 38,965 | 55,447 | |
Liabilities | (36,554) | (53,068) | |
Net Assets | 2,411 | 2,379 | |
Consolidated trusts | Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 141,971 | 162,460 | |
Liabilities | (133,744) | (153,089) | |
Net Assets | $ 8,227 | 9,371 | |
Warehouse credit facility | Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 258 | ||
Liabilities | 0 | ||
Net Assets | $ 258 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Securitizations and Variable _5
Securitizations and Variable Interest Entities - Unconsolidated VIEs with Significant Continuing Involvement (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 4,491,089 | $ 1,863,293 |
Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 2,668,598 | 3,233,416 | |
Net Assets | 150,408 | 174,891 | |
Maximum Exposure to Loss | 150,408 | 174,891 | |
Unconsolidated Trusts | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 1,077,309 | 1,267,611 | |
Net Assets | 59,184 | 67,165 | |
Maximum Exposure to Loss | 59,184 | 67,165 | |
Certificate Program | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 1,555,920 | 1,931,429 | |
Net Assets | 83,449 | 99,951 | |
Maximum Exposure to Loss | 83,449 | 99,951 | |
Investment Fund | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 35,369 | 34,376 | |
Net Assets | 7,775 | 7,775 | |
Maximum Exposure to Loss | 7,775 | 7,775 | |
Securities Available for Sale | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 122,707 | 142,026 | |
Maximum Exposure to Loss | 122,707 | 142,026 | |
Securities Available for Sale | Unconsolidated Trusts | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 51,273 | 57,511 | |
Maximum Exposure to Loss | 51,273 | 57,511 | |
Securities Available for Sale | Certificate Program | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 71,434 | 84,515 | |
Maximum Exposure to Loss | 71,434 | 84,515 | |
Securities Available for Sale | Investment Fund | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 0 | 0 | |
Maximum Exposure to Loss | 0 | 0 | |
Other Assets | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 27,701 | 32,865 | |
Maximum Exposure to Loss | 27,701 | 32,865 | |
Other Assets | Unconsolidated Trusts | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 7,911 | 9,654 | |
Maximum Exposure to Loss | 7,911 | 9,654 | |
Other Assets | Certificate Program | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 12,015 | 15,436 | |
Maximum Exposure to Loss | 12,015 | 15,436 | |
Other Assets | Investment Fund | Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Assets | 7,775 | 7,775 | |
Maximum Exposure to Loss | $ 7,775 | $ 7,775 | |
Other Assets | |||
Variable Interest Entity [Line Items] | |||
Ownership (percent) | 22.00% | ||
Other assets | $ 7,800 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Securitizations and Variable _6
Securitizations and Variable Interest Entities - Summary of Personal Whole Loan Securitizations and Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Unconsolidated 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 | $ 0 | $ 255,203 |
Net gains (losses) recognized from loans securitized or sold | 0 | (20) |
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement | 0 | 12,707 |
Cash proceeds from loans securitized or sold | 0 | 237,764 |
Cash proceeds from servicing and other administrative fees on loans securitized or sold | 3,017 | 5,121 |
Cash proceeds for interest received on senior securities and subordinated securities | 608 | 1,040 |
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 | 0 | 637,637 |
Net gains (losses) recognized from loans securitized or sold | 0 | 5,596 |
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement | 0 | 31,423 |
Cash proceeds from loans securitized or sold | 0 | 598,515 |
Cash proceeds from servicing and other administrative fees on loans securitized or sold | 4,918 | 6,992 |
Cash proceeds for interest received on senior securities and subordinated securities | $ 1,258 | 2,273 |
Structured Program Transactions | Senior securities | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Transferor's Interests Retained In Transferred Financial Assets, Fair Value | 23,000 | |
Structured Program Transactions | CLUB Certificate asset-backed securities | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Transferor's Interests Retained In Transferred Financial Assets, Fair Value | 18,300 | |
Structured Program Transactions | Subordinated securities | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Transferor's Interests Retained In Transferred Financial Assets, Fair Value | $ 2,900 |
Securitizations and Variable _7
Securitizations and Variable Interest Entities - Off-balance Sheet Loans Sold or Securitized (Details) - Off-balance Sheet Loans - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding principal balance | $ 2,600 | $ 3,200 |
Off-balance sheet loans, principal amount outstanding, 31 days or more past due | $ 66 | $ 94.8 |
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 | Mar. 31, 2021 | Dec. 31, 2020 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for sale at fair value | $ 166,623 | $ 121,902 | |||
Retail and certificate loans held for investment at fair value | 507,157 | 636,686 | [1],[2] | ||
Other loans held for investment at fair value | 2,079,300 | 0 | |||
Other loans held for investment at fair value | [1],[2] | 42,485 | 49,954 | ||
Securities available for sale: | |||||
Securities available for sale at fair value | [1] | 274,419 | 142,226 | ||
Servicing assets | 54,113 | 56,347 | |||
Other assets | 9,437 | ||||
Total assets | 1,054,234 | 1,007,115 | |||
Retail notes, certificates and secured borrowings | 507,203 | 636,774 | [1],[2] | ||
Payable on Structured Program borrowings | 133,499 | 152,808 | [1],[2] | ||
Contract With Customer, Liability, Fair Value | 22,276 | 12,270 | |||
Total liabilities | 662,978 | 801,852 | |||
Asset-backed senior securities and subordinated securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 80,740 | 91,887 | |||
U.S. agency residential mortgage-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 70,730 | ||||
CLUB Certificate asset-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 41,967 | 50,139 | |||
Other asset-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 29,800 | 200 | |||
Commercial mortgage-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 28,440 | ||||
U.S. agency securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 19,284 | ||||
Municipal securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 3,258 | ||||
Other securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 200 | 200 | |||
Level 1 Inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for sale at fair value | 0 | 0 | |||
Retail and certificate loans held for investment at fair value | 0 | 0 | |||
Other loans held for investment at fair value | 0 | 0 | |||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | 0 | |||
Servicing assets | 0 | 0 | |||
Other assets | 0 | ||||
Total assets | 0 | 0 | |||
Retail notes, certificates and secured borrowings | 0 | 0 | |||
Payable on Structured Program borrowings | 0 | 0 | |||
Contract With Customer, Liability, Fair Value | 0 | 0 | |||
Total liabilities | 0 | 0 | |||
Level 1 Inputs | Asset-backed senior securities and subordinated securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | 0 | |||
Level 1 Inputs | U.S. agency residential mortgage-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | ||||
Level 1 Inputs | CLUB Certificate asset-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | 0 | |||
Level 1 Inputs | Other asset-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | 0 | |||
Level 1 Inputs | Commercial mortgage-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | ||||
Level 1 Inputs | U.S. agency securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | ||||
Level 1 Inputs | Municipal securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | ||||
Level 1 Inputs | Other securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | ||||
Level 2 Inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for sale at fair value | 0 | 0 | |||
Retail and certificate loans held for investment at fair value | 0 | 0 | |||
Other loans held for investment at fair value | 0 | 0 | |||
Securities available for sale: | |||||
Securities available for sale at fair value | 214,665 | 75,572 | |||
Servicing assets | 0 | 0 | |||
Other assets | 4,235 | ||||
Total assets | 218,900 | 75,572 | |||
Retail notes, certificates and secured borrowings | 0 | 0 | |||
Payable on Structured Program borrowings | 0 | 0 | |||
Contract With Customer, Liability, Fair Value | 0 | 0 | |||
Total liabilities | 0 | 0 | |||
Level 2 Inputs | Asset-backed senior securities and subordinated securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 62,953 | 75,372 | |||
Level 2 Inputs | U.S. agency residential mortgage-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 70,730 | ||||
Level 2 Inputs | CLUB Certificate asset-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | 0 | |||
Level 2 Inputs | Other asset-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 200 | ||||
Level 2 Inputs | Commercial mortgage-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 28,440 | ||||
Level 2 Inputs | Municipal securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 3,258 | ||||
Level 2 Inputs | Other securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 200 | ||||
Level 3 Inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held for sale at fair value | 166,623 | [1],[2] | 121,902 | ||
Retail and certificate loans held for investment at fair value | 507,157 | [1],[2] | 636,686 | ||
Other loans held for investment at fair value | 42,485 | 49,954 | |||
Securities available for sale: | |||||
Securities available for sale at fair value | 59,754 | 66,654 | |||
Servicing assets | 54,113 | 56,347 | |||
Other assets | 5,202 | ||||
Total assets | 835,334 | 931,543 | |||
Retail notes, certificates and secured borrowings | 507,203 | [1],[2] | 636,774 | ||
Payable on Structured Program borrowings | 133,499 | [1],[2] | 152,808 | ||
Contract With Customer, Liability, Fair Value | 22,276 | 12,270 | |||
Total liabilities | 662,978 | 801,852 | |||
Level 3 Inputs | Asset-backed senior securities and subordinated securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 17,787 | 16,515 | |||
Level 3 Inputs | U.S. agency residential mortgage-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | ||||
Level 3 Inputs | CLUB Certificate asset-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 41,967 | 50,139 | |||
Level 3 Inputs | Other asset-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | $ 0 | |||
Level 3 Inputs | Commercial mortgage-backed securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | ||||
Level 3 Inputs | U.S. agency securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | ||||
Level 3 Inputs | Municipal securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | 0 | ||||
Level 3 Inputs | Other securities | |||||
Securities available for sale: | |||||
Securities available for sale at fair value | $ 0 | ||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||
[2] | 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 - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||||
Asset transfers, net | $ 0 | $ 0 | ||
Liability transfers, net | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | |
Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.62% |
Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.62% |
Level 3 Inputs | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | |
Measurement Input, Discount Rate | Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 4.80% | 4.80% |
Measurement Input, Discount Rate | Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 16.40% | 16.40% |
Measurement Input, Discount Rate | Level 3 Inputs | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 9.90% | 9.90% |
Measurement Input, Loss Severity | Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 2.60% | 4.50% |
Measurement Input, Loss Severity | Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 26.90% | 26.30% |
Measurement Input, Loss Severity | Level 3 Inputs | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 10.70% | 12.50% |
Measurement Input, Prepayment Rate | Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 28.10% | 27.00% |
Measurement Input, Prepayment Rate | Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 46.20% | 38.90% |
Measurement Input, Prepayment Rate | Level 3 Inputs | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 32.70% | 31.20% |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Measurement Input, Discount Rate | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 7.60% | 7.60% |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Measurement Input, Discount Rate | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 15.20% | 15.00% |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Measurement Input, Discount Rate | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 9.40% | 9.40% |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Measurement Input, Loss Severity | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 3.70% | 4.30% |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Measurement Input, Loss Severity | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 20.60% | 28.10% |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Measurement Input, Loss Severity | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 9.70% | 11.20% |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Measurement Input, Prepayment Rate | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 28.30% | 27.30% |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Measurement Input, Prepayment Rate | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 36.30% | 35.70% |
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Measurement Input, Prepayment Rate | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 31.50% | 30.40% |
Loans Invested in by Company | Measurement Input, Discount Rate | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 5.20% | 7.50% |
Loans Invested in by Company | Measurement Input, Discount Rate | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 15.40% | 16.10% |
Loans Invested in by Company | Measurement Input, Discount Rate | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.80% | 8.80% |
Loans Invested in by Company | Measurement Input, Loss Severity | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 2.50% | 5.00% |
Loans Invested in by Company | Measurement Input, Loss Severity | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 20.20% | 26.30% |
Loans Invested in by Company | Measurement Input, Loss Severity | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.30% | 10.30% |
Loans Invested in by Company | Measurement Input, Prepayment Rate | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 27.70% | 26.80% |
Loans Invested in by Company | Measurement Input, Prepayment Rate | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 42.60% | 39.70% |
Loans Invested in by Company | Measurement Input, Prepayment Rate | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 31.80% | 30.70% |
Loans Held For Sale | Measurement Input, Discount Rate | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 5.20% | 7.60% |
Loans Held For Sale | Measurement Input, Discount Rate | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 15.50% | 16.00% |
Loans Held For Sale | Measurement Input, Discount Rate | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.30% | 8.50% |
Loans Held For Sale | Measurement Input, Loss Severity | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 2.50% | 5.00% |
Loans Held For Sale | Measurement Input, Loss Severity | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 22.80% | 28.00% |
Loans Held For Sale | Measurement Input, Loss Severity | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 6.60% | 8.20% |
Loans Held For Sale | Measurement Input, Prepayment Rate | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 28.20% | 27.20% |
Loans Held For Sale | Measurement Input, Prepayment Rate | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 46.20% | 41.20% |
Loans Held For Sale | Measurement Input, Prepayment Rate | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 31.90% | 30.40% |
Asset-backed securities related to Structured Program transactions | Measurement Input, Discount Rate | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 2.20% | 2.20% |
Asset-backed securities related to Structured Program transactions | Measurement Input, Discount Rate | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 25.10% | 25.10% |
Asset-backed securities related to Structured Program transactions | Measurement Input, Discount Rate | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.70% | 8.40% |
Asset-backed securities related to Structured Program transactions | Measurement Input, Loss Severity | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 5.10% | 5.40% |
Asset-backed securities related to Structured Program transactions | Measurement Input, Loss Severity | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 23.80% | 28.90% |
Asset-backed securities related to Structured Program transactions | Measurement Input, Loss Severity | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 14.90% | 18.80% |
Asset-backed securities related to Structured Program transactions | Measurement Input, Prepayment Rate | Level 3 Inputs | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 10.10% | 6.30% |
Asset-backed securities related to Structured Program transactions | Measurement Input, Prepayment Rate | Level 3 Inputs | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 31.80% | 30.50% |
Asset-backed securities related to Structured Program transactions | Measurement Input, Prepayment Rate | Level 3 Inputs | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 26.90% | 24.80% |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Sensitivity of Fair Value of Loans Invested in by the Company, Asset-backed Securities Related to Structured Program Transactions and Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Loans held for sale at fair value | $ 166,623 | $ 121,902 | |||||
Securities available for sale at fair value | [1] | 274,419 | 142,226 | ||||
Servicing assets | 54,113 | 56,347 | |||||
Loans held for sale by the Company at fair value | 0 | ||||||
Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Servicing assets | 54,113 | 56,347 | $ 92,825 | $ 89,680 | |||
Level 3 Inputs | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Loans held for sale at fair value | 166,623 | [1],[2] | 121,902 | ||||
Securities available for sale at fair value | 59,754 | 66,654 | |||||
Servicing assets | 54,113 | 56,347 | |||||
Level 3 Inputs | Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Servicing assets | 54,113 | 56,347 | |||||
Asset-backed Securities Related to Structured Program Transactions, Senior Securities | Level 3 Inputs | Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Securities available for sale at fair value | 75,372 | ||||||
Discount rates, impact of 100 basis point increase | (434) | (579) | |||||
Discount rates, impact of 200 basis point increase | (859) | (1,145) | |||||
Expected credit loss on rates on underlying loans, 10% adverse change | 0 | 0 | |||||
Expected credit loss on rates on underlying loans, 20% adverse change | 0 | 0 | |||||
Expected prepayment rates, 10% adverse change | 0 | 0 | |||||
Expected prepayment rates, 20% adverse change | $ 0 | 0 | |||||
Asset-backed Securities Related to Structured Program Transactions, Senior Securities | Level 3 Inputs | Fair Value, Measurements, Recurring | Measurement Input, Expected Term | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted-average estimated life of contractual repurchase agreements | 9 months 18 days | 10 months 24 days | |||||
Asset-backed Securities Related to Structured Program Transactions, Subordinated Securities | Level 3 Inputs | Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Securities available for sale at fair value | 16,515 | ||||||
Discount rates, impact of 100 basis point increase | $ (164) | (161) | |||||
Discount rates, impact of 200 basis point increase | (350) | (343) | |||||
Expected credit loss on rates on underlying loans, 10% adverse change | (1,286) | (1,831) | |||||
Expected credit loss on rates on underlying loans, 20% adverse change | (2,630) | (3,718) | |||||
Expected prepayment rates, 10% adverse change | (712) | (791) | |||||
Expected prepayment rates, 20% adverse change | $ (1,666) | (1,736) | |||||
Asset-backed Securities Related to Structured Program Transactions, Subordinated Securities | Level 3 Inputs | Fair Value, Measurements, Recurring | Measurement Input, Expected Term | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Weighted-average estimated life of contractual repurchase agreements | 1 year 3 months 18 days | 1 year 4 months 24 days | |||||
Asset-backed Securities Related to Structured Program Transactions, CLUB Transactions | Level 3 Inputs | Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Securities available for sale at fair value | 50,139 | ||||||
Discount rates, impact of 100 basis point increase | $ (324) | (405) | |||||
Discount rates, impact of 200 basis point increase | (642) | (800) | |||||
Expected credit loss on rates on underlying loans, 10% adverse change | (1,019) | (1,528) | |||||
Expected credit loss on rates on underlying loans, 20% adverse change | (2,089) | (3,095) | |||||
Expected prepayment rates, 10% adverse change | (561) | (659) | |||||
Expected prepayment rates, 20% adverse change | $ (1,168) | (1,343) | |||||
Asset-backed Securities Related to Structured Program Transactions, CLUB Transactions | Level 3 Inputs | Fair Value, Measurements, Recurring | Measurement Input, Expected Term | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Expected weighted-average life (in years) | 10 months 24 days | 10 months 24 days | |||||
Servicing Assets | Level 3 Inputs | Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Discount rates, impact of 100 basis point increase | $ (437) | (455) | |||||
Discount rates, impact of 200 basis point increase | (875) | (911) | |||||
Expected credit loss on rates on underlying loans, 10% adverse change | (598) | (346) | |||||
Expected credit loss on rates on underlying loans, 20% adverse change | (1,196) | (691) | |||||
Expected prepayment rates, 10% adverse change | (2,277) | (1,596) | |||||
Expected prepayment rates, 20% adverse change | (4,554) | (3,192) | |||||
Loans Invested in by Company | Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Discount rates, impact of 100 basis point increase | (428) | (541) | |||||
Discount rates, impact of 200 basis point increase | (849) | (1,073) | |||||
Expected credit loss rates on underlying loans, 10% adverse change | (447) | (640) | |||||
Expected credit loss rates on underlying loans, 20% adverse change | (906) | (1,295) | |||||
Expected prepayment rates, 10% adverse change | (164) | (181) | |||||
Expected prepayment rates, 20% adverse change | (342) | (368) | |||||
Loans held for sale by the Company at fair value | $ 42,485 | $ 49,954 | |||||
Loans Invested in by Company | Fair Value, Measurements, Recurring | Measurement Input, Expected Term | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Expected weighted-average life (in years) | 1 year | 1 year 1 month 6 days | |||||
Loans Held For Sale | Fair Value, Measurements, Recurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Loans held for sale at fair value | $ 166,623 | $ 121,902 | |||||
Discount rates, impact of 100 basis point increase | (1,706) | (1,151) | |||||
Discount rates, impact of 200 basis point increase | (3,382) | (2,282) | |||||
Expected credit loss rates on underlying loans, 10% adverse change | (1,486) | (1,099) | |||||
Expected credit loss rates on underlying loans, 20% adverse change | (3,003) | (2,220) | |||||
Expected prepayment rates, 10% adverse change | (514) | (273) | |||||
Expected prepayment rates, 20% adverse change | $ (1,027) | $ (556) | |||||
Loans Held For Sale | Fair Value, Measurements, Recurring | Measurement Input, Expected Term | |||||||
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 1 month 6 days | |||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||||
[2] | 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 - Fair Value Reconciliation (Detail) - Loans Invested in by Company - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Loans Held For Sale | ||
Loans | ||
Outstanding Principal Balance, Beginning | $ 132,600 | $ 747,394 |
Valuation Adjustment, Beginning | (10,698) | (25,039) |
Fair Value, Beginning | 121,902 | 722,355 |
Outstanding Principal Balance, Purchases | 941,945 | 1,379,094 |
Valuation Adjustment, Purchases | (1,629) | 0 |
Fair Value, Purchases | 940,316 | 1,379,094 |
Outstanding Principal Balance, Transfers (to) from loans held for investment and/or loans held for sale | (63) | (43,123) |
Valuation Adjustment, Transfers (to) from loans to loans held for sale | 0 | 0 |
Fair Value, Transfers (to) from loans to loans held for sale | (63) | (43,123) |
Outstanding Principal Balance, Sales | (873,672) | (1,171,407) |
Valuation Adjustment, Sales | 7,037 | 19,909 |
Fair Value, Sales | (866,635) | (1,151,498) |
Outstanding Principal Balance, Principal payments and retirements | (22,821) | (70,103) |
Valuation Adjustment, Principal payments and retirements | 0 | 0 |
Fair Value, Principal payments and retirements | (22,821) | (70,103) |
Outstanding Principal Balance, Charge-offs, net of recoveries | (3,859) | (6,298) |
Valuation Adjustment, Charge-offs, net of recoveries | 3,186 | 5,779 |
Fair Value, Charge-offs, net of recoveries | (673) | (519) |
Outstanding Principal Balance, Change in fair value recorded in earnings | 0 | 0 |
Valuation Adjustment, Change in fair value recorded in earnings | (5,403) | (94,502) |
Fair Value, Change in fair value recorded in earnings | (5,403) | (94,502) |
Outstanding Principal Balance, Ending | 174,130 | 835,557 |
Valuation Adjustment, Ending | (7,507) | (93,853) |
Fair Value, Ending | 166,623 | 741,704 |
Loans Held for Investment | ||
Loans | ||
Outstanding Principal Balance, Beginning | 679,903 | 1,148,888 |
Valuation Adjustment, Beginning | (43,217) | (69,573) |
Fair Value, Beginning | 636,686 | 1,079,315 |
Outstanding Principal Balance, Purchases | 104,620 | |
Valuation Adjustment, Purchases | 0 | |
Fair Value, Purchases | 104,620 | |
Outstanding Principal Balance, Transfers (to) from loans held for investment and/or loans held for sale | (17,478) | |
Valuation Adjustment, Transfers (to) from loans to loans held for sale | 0 | |
Fair Value, Transfers (to) from loans to loans held for sale | (17,478) | |
Outstanding Principal Balance, Issuance | 0 | |
Valuation Adjustment, Issuances | 0 | |
Fair Value, Issuances | 0 | |
Outstanding Principal Balance, Principal payments and retirements | (131,020) | (215,748) |
Valuation Adjustment, Principal payments and retirements | 0 | 0 |
Fair Value, Principal payments and retirements | (131,020) | (215,748) |
Outstanding Principal Balance, Charge-offs, net of recoveries | (12,008) | (29,620) |
Valuation Adjustment, Charge-offs, net of recoveries | 4,740 | 17,311 |
Fair Value, Charge-offs, net of recoveries | (7,268) | (12,309) |
Outstanding Principal Balance, Change in fair value recorded in earnings | 0 | 0 |
Valuation Adjustment, Change in fair value recorded in earnings | 8,759 | (52,987) |
Fair Value, Change in fair value recorded in earnings | 8,759 | (52,987) |
Outstanding Principal Balance, Ending | 536,875 | 990,662 |
Valuation Adjustment, Ending | (29,718) | (105,249) |
Fair Value, Ending | 507,157 | 885,413 |
Notes, Certificates and Secured Borrowings | ||
Loans | ||
Outstanding Principal Balance, Beginning | 679,903 | 1,148,888 |
Valuation Adjustment, Beginning | (43,129) | (67,422) |
Fair Value, Beginning | 636,774 | 1,081,466 |
Outstanding Principal Balance, Purchases | 0 | |
Valuation Adjustment, Purchases | 0 | |
Fair Value, Purchases | 0 | |
Outstanding Principal Balance, Transfers (to) from loans held for investment and/or loans held for sale | 0 | |
Valuation Adjustment, Transfers (to) from loans to loans held for sale | 0 | |
Fair Value, Transfers (to) from loans to loans held for sale | 0 | |
Outstanding Principal Balance, Issuance | 104,620 | |
Valuation Adjustment, Issuances | 0 | |
Fair Value, Issuances | 104,620 | |
Outstanding Principal Balance, Principal payments and retirements | (131,020) | (233,226) |
Valuation Adjustment, Principal payments and retirements | 0 | 0 |
Fair Value, Principal payments and retirements | (131,020) | (233,226) |
Outstanding Principal Balance, Charge-offs, net of recoveries | (12,008) | (29,620) |
Valuation Adjustment, Charge-offs, net of recoveries | 4,652 | 16,431 |
Fair Value, Charge-offs, net of recoveries | (7,356) | (13,189) |
Outstanding Principal Balance, Change in fair value recorded in earnings | 0 | 0 |
Valuation Adjustment, Change in fair value recorded in earnings | 8,805 | (52,831) |
Fair Value, Change in fair value recorded in earnings | 8,805 | (52,831) |
Outstanding Principal Balance, Ending | 536,875 | 990,662 |
Valuation Adjustment, Ending | (29,672) | (103,822) |
Fair Value, Ending | 507,203 | 886,840 |
Other Loans Held For Investment | ||
Loans | ||
Outstanding Principal Balance, Beginning | 56,388 | 47,042 |
Valuation Adjustment, Beginning | (6,434) | (3,349) |
Fair Value, Beginning | 49,954 | 43,693 |
Outstanding Principal Balance, Purchases | 116 | 727 |
Valuation Adjustment, Purchases | (98) | (693) |
Fair Value, Purchases | 18 | 34 |
Outstanding Principal Balance, Transfers (to) from loans held for investment and/or loans held for sale | 43,188 | |
Valuation Adjustment, Transfers (to) from loans to loans held for sale | 0 | |
Fair Value, Transfers (to) from loans to loans held for sale | 43,188 | |
Outstanding Principal Balance, Principal payments and retirements | (8,324) | (5,684) |
Valuation Adjustment, Principal payments and retirements | 0 | 0 |
Fair Value, Principal payments and retirements | (8,324) | (5,684) |
Outstanding Principal Balance, Charge-offs, net of recoveries | (1,025) | (1,623) |
Valuation Adjustment, Charge-offs, net of recoveries | 574 | 134 |
Fair Value, Charge-offs, net of recoveries | (451) | (1,489) |
Outstanding Principal Balance, Change in fair value recorded in earnings | 0 | 0 |
Valuation Adjustment, Change in fair value recorded in earnings | 1,288 | (8,739) |
Fair Value, Change in fair value recorded in earnings | 1,288 | (8,739) |
Outstanding Principal Balance, Ending | 47,155 | 83,650 |
Valuation Adjustment, Ending | (4,670) | (12,647) |
Fair Value, Ending | $ 42,485 | $ 71,003 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Servicing Assets, Changes in fair value due to: | ||
Fair value at beginning of period | $ 56,347 | |
Fair value at end of period | 54,113 | |
Fair Value, Measurements, Recurring | ||
Servicing Assets, Changes in fair value due to: | ||
Fair value at beginning of period | 56,347 | $ 89,680 |
Issuances | 7,235 | 17,581 |
Change in fair value, included in Marketplace revenue | (11,837) | (9,608) |
Other net changes included in Deferred revenue | 2,368 | (4,828) |
Fair value at end of period | 54,113 | 92,825 |
Asset-backed subordinated securities related to Company-sponsored Structured Program transactions | ||
Servicing Liabilities, Changes in fair value due to: | ||
Fair value at beginning of period | 66,654 | 110,796 |
Additions | 578 | 23,585 |
Cash received | (14,194) | (16,266) |
Change in unrealized gain (loss) | 3,125 | (5,256) |
Accrued interest | 1,121 | 1,632 |
Reversal of (impairment on) securities available for sale | 2,470 | (10,980) |
Fair value at end of period | $ 59,754 | $ 103,511 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured Using Different Market Servicing Rates and Different Prepayment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in rate | 0.10% | 0.10% |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted-average market servicing rate assumptions, servicing assets | 0.62% | 0.62% |
Assets, servicing rate increase by .1% | $ (7,757) | $ (7,379) |
Assets, servicing rate decrease by .1% | $ 7,757 | $ 7,379 |
Fair Value of Assets and Lia_10
Fair Value of Assets and Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | $ 54,113 | $ 56,347 |
Loans and leases held for investment, net | 2,079,300 | 0 |
Other assets | 9,437 | |
Total assets | 1,054,234 | 1,007,115 |
Total liabilities | 662,978 | 801,852 |
Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 0 | 0 |
Other assets | 0 | |
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 0 | 0 |
Other assets | 4,235 | |
Total assets | 218,900 | 75,572 |
Total liabilities | 0 | 0 |
Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 54,113 | 56,347 |
Other assets | 5,202 | |
Total assets | 835,334 | 931,543 |
Total liabilities | 662,978 | 801,852 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 524,963 | |
Servicing assets | 2,859 | |
Restricted cash | 103,522 | |
Loans and leases held for investment, net | 2,079,300 | |
Other assets | 0 | 914 |
Total assets | 2,082,159 | 629,399 |
Deposits | 98,547 | |
Short-term borrowings | 90,091 | 104,989 |
Advances from PPPLF | 370,086 | |
Other long-term debt | 18,572 | |
Other liabilities | 50,755 | 57,536 |
Total liabilities | 628,051 | 162,525 |
Portion Not Recorded at Fair Value | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Servicing assets | 0 | |
Restricted cash | 0 | |
Loans and leases held for investment, net | 0 | |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Deposits | 0 | |
Short-term borrowings | 0 | 0 |
Advances from PPPLF | 0 | |
Other long-term debt | 0 | |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Portion Not Recorded at Fair Value | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 524,963 | |
Servicing assets | 0 | |
Restricted cash | 103,522 | |
Loans and leases held for investment, net | 0 | |
Other assets | 9,023 | 914 |
Total assets | 9,023 | 629,399 |
Deposits | 0 | |
Short-term borrowings | 54,088 | 65,121 |
Advances from PPPLF | 0 | |
Other long-term debt | 0 | |
Other liabilities | 35,063 | 43,984 |
Total liabilities | 89,151 | 109,105 |
Portion Not Recorded at Fair Value | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Servicing assets | 2,921 | |
Restricted cash | 0 | |
Loans and leases held for investment, net | 2,126,840 | |
Other assets | 0 | 0 |
Total assets | 2,129,761 | 0 |
Deposits | 98,547 | |
Short-term borrowings | 36,003 | 39,868 |
Advances from PPPLF | 370,086 | |
Other long-term debt | 18,572 | |
Other liabilities | 15,692 | 13,552 |
Total liabilities | 538,900 | 53,420 |
Balance at Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 524,963 | |
Servicing assets | 2,921 | |
Restricted cash | 103,522 | |
Loans and leases held for investment, net | 2,126,840 | |
Other assets | 9,023 | 914 |
Total assets | 2,138,784 | 629,399 |
Deposits | 98,547 | |
Short-term borrowings | 90,091 | 104,989 |
Advances from PPPLF | 370,086 | |
Other long-term debt | 18,572 | |
Other liabilities | 50,755 | 57,536 |
Total liabilities | $ 628,051 | $ 162,525 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Internally developed software | $ 108,414 | $ 101,953 | |
Leasehold improvements | 36,387 | 35,140 | |
Computer equipment | 27,896 | 27,030 | |
Purchased software | 19,327 | 19,004 | |
Furniture and fixtures | 8,252 | 8,203 | |
Construction in progress | 3,046 | 2,761 | |
Total property, equipment and software | 203,322 | 194,091 | |
Accumulated depreciation and amortization | (108,009) | (97,450) | |
Total property, equipment and software, net | [1] | 95,313 | 96,641 |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Internally developed software | $ 14,700 | $ 13,900 | |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 11,450 | $ 13,730 |
Property, Equipment and Software | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | 10,200 | 11,800 |
Internally Developed Software | ||
Property, Plant and Equipment [Line Items] | ||
Impairment expense | $ 300 | $ 200 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Feb. 01, 2021 | Dec. 31, 2020 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | [1] | $ 75,717,000 | $ 0 | ||
Amortization expense | 1,200,000 | $ 800,000 | |||
Impairment of intangible assets | 0 | $ 0 | |||
Radius Bancorp, Inc. Merger | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 75,700,000 | $ 75,717,000 | |||
Customer Relationships | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortized period | 10 years | ||||
Customer Relationships | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortized period | 14 years | ||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying value | $ 25,220 | $ 0 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 54,500 | 39,500 |
Accumulated amortization | (29,280) | (28,073) |
Net carrying value | $ 25,220 | $ 11,427 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Expected Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 4,039 | |
2022 | 4,847 | |
2023 | 4,198 | |
2024 | 3,549 | |
2025 | 2,901 | |
Thereafter | 5,686 | |
Net carrying value | $ 25,220 | $ 0 |
Other Assets (Detail)
Other Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Other Assets [Abstract] | |||
Other assets | [1],[2] | $ 279,195 | $ 187,399 |
Operating lease assets | |||
Other Assets [Abstract] | |||
Other assets | 84,931 | 74,037 | |
Loan servicing assets | |||
Other Assets [Abstract] | |||
Other assets | 56,972 | 56,347 | |
Bank-owned life insurance | |||
Other Assets [Abstract] | |||
Other assets | 31,623 | 0 | |
Intangible assets, net | |||
Other Assets [Abstract] | |||
Other assets | 25,220 | 11,427 | |
Prepaid expenses | |||
Other Assets [Abstract] | |||
Other assets | 17,163 | 16,455 | |
Accounts receivable | |||
Other Assets [Abstract] | |||
Other assets | 14,194 | 10,243 | |
Other investments | |||
Other Assets [Abstract] | |||
Other assets | 13,871 | 8,275 | |
Accrued interest receivable | |||
Other Assets [Abstract] | |||
Other assets | 13,792 | 5,205 | |
Other | |||
Other Assets [Abstract] | |||
Other assets | 21,429 | 5,410 | |
Loan Servicing Rights | |||
Other Assets [Abstract] | |||
Principal balance of underlying loan servicing rights | $ 9,400,000 | $ 10,100,000 | |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||
[2] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |||
Checking accounts | $ 1,653,254 | ||
Savings and money market accounts | 478,026 | ||
Certificates of deposit | 98,547 | ||
Interest-bearing | [1] | 2,229,827 | $ 0 |
Noninterest-bearing | [1] | 143,610 | 0 |
Total deposits | [1] | 2,373,437 | $ 0 |
Deposits, $100,000 or more | 93,400 | ||
Deposits at or above FDIC insurance limit | $ 33,800 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Deposits - Maturity Schedule (D
Deposits - Maturity Schedule (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Other Liabilities Disclosure [Abstract] | |
2021 | $ 69,001 |
2022 | 25,062 |
2023 | 3,861 |
2024 | 57 |
2025 | 231 |
Thereafter | 335 |
Total certificates of deposit | $ 98,547 |
Short-term Borrowings and Lon_3
Short-term Borrowings and Long-term Debt - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Underlying assets pledged as collateral | $ 114,900 | $ 133,500 | |||
Unsecured borrowing facility | 7,500 | ||||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | [1] | 370,086 | 0 | ||
Advances from Federal Home Loan Banks | $ 2,800 | ||||
Level 3 Inputs | Fair Value, Measurements, Recurring | Asset-backed Securities Related to Structured Program Transactions, Senior Securities | Measurement Input, Expected Term | |||||
Debt Instrument [Line Items] | |||||
Weighted-average estimated life of contractual repurchase agreements | 9 months 18 days | 10 months 24 days | |||
Level 3 Inputs | Fair Value, Measurements, Recurring | Asset-backed Securities Related to Structured Program Transactions, Subordinated Securities | Measurement Input, Expected Term | |||||
Debt Instrument [Line Items] | |||||
Weighted-average estimated life of contractual repurchase agreements | 1 year 3 months 18 days | 1 year 4 months 24 days | |||
Payables to Securitization Holders | |||||
Debt Instrument [Line Items] | |||||
Restricted cash | $ 15,200 | 13,500 | |||
Subordinated Notes | Radius Bancorp, Inc. Merger | |||||
Debt Instrument [Line Items] | |||||
Subordinated notes assumed | $ 15,800 | ||||
Debt instrument, stated interest rate | 6.50% | ||||
Subordinated debt outstanding | $ 15,300 | ||||
Subordinated debt, purchase premium | 400 | ||||
Loans Held for Investment and Loans Held for Sale | Payables to Securitization Holders | |||||
Debt Instrument [Line Items] | |||||
Loans pledged as collateral | $ 148,300 | ||||
Consolidated VIEs | Loans Related to Consolidation of Securitization Trust | Loans Held for Investment | Payables to Securitization Holders | |||||
Debt Instrument [Line Items] | |||||
Loans pledged as collateral | $ 126,200 | ||||
London Interbank Offered Rate (LIBOR) | Securities Sold under Agreements to Repurchase | Minimum | |||||
Debt Instrument [Line Items] | |||||
Borrowings interest rate spread (percent) | 3.08% | 3.05% | |||
London Interbank Offered Rate (LIBOR) | Securities Sold under Agreements to Repurchase | Maximum | |||||
Debt Instrument [Line Items] | |||||
Borrowings interest rate spread (percent) | 6.33% | 4.00% | |||
London Interbank Offered Rate (LIBOR) | Forecast | Subordinated Notes | Radius Bancorp, Inc. Merger | |||||
Debt Instrument [Line Items] | |||||
Borrowings interest rate spread (percent) | 4.64% | ||||
Credit Facilities and Securities Sold under Repurchase Agreements | |||||
Debt Instrument [Line Items] | |||||
Aggregate debt outstanding under repurchase transactions | $ 90,100 | $ 105,000 | |||
Payable to Securitization Note and Certificate Holders at Fair Value | Consolidated VIEs | Loans Related to Consolidation of Securitization Trust | Loans Held for Investment | |||||
Debt Instrument [Line Items] | |||||
Payable to Structured Program note and certificate holders | $ 133,500 | $ 152,800 | |||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Short-term Borrowings and Lon_4
Short-term Borrowings and Long-term Debt - Schedule of Notes, Certificates and Secured Borrowings at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Total retail notes, certificates and secured borrowings | $ 507,203 | $ 636,774 | [1],[2] |
Loans Held for Investment | Secured Borrowings | |||
Debt Instrument [Line Items] | |||
Loans pledged as collateral | 200 | 800 | |
Fair Value, Measurements, Recurring | |||
Debt Instrument [Line Items] | |||
Retail notes | 470,720 | 583,219 | |
Certificates | 36,277 | 52,620 | |
Secured borrowings | 206 | 935 | |
Total retail notes, certificates and secured borrowings | $ 507,203 | $ 636,774 | |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||
[2] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Other Liabilities (Detail)
Other Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Offsetting Liabilities [Line Items] | |||
Operating lease liabilities | $ 104,220 | $ 0 | |
Payable to investors | 35,063 | 0 | |
Accrued expenses | 26,176 | 14,382 | |
Contingent liabilities | 21,988 | 21,592 | |
Accrued compensation | 16,319 | 28,805 | |
Transaction fee refund reserve | 15,692 | 14,119 | |
Accounts payable | 10,742 | 0 | |
Deferred revenue | 7,615 | 4,923 | |
Loan trailing fee liability, at fair value | 6,499 | 7,494 | |
Other | 20,752 | 14,714 | |
Total other liabilities | [1],[2] | $ 265,066 | 244,551 |
Previously Reported | |||
Offsetting Liabilities [Line Items] | |||
Operating lease liabilities | 94,538 | ||
Payable to investors | 40,286 | ||
Accounts payable | 3,698 | ||
Total other liabilities | $ 0 | ||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||
[2] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Employee Incentive Plans - Sche
Employee Incentive Plans - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 15,193 | $ 18,129 |
RSUs and PBRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 14,743 | 17,706 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 450 | $ 423 |
Employee Incentive Plans - Addi
Employee Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 15,193 | $ 18,129 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (shares) | 4,415,391 | |
Equity instruments other than options, aggregate fair value | $ 49,200 | |
Unrecognized compensation cost related to unvested awards | $ 148,700 | |
Unrecognized compensation cost, period for recognition | 2 years 8 months 12 days | |
PBRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (shares) | 568,285 | |
Unrecognized compensation cost related to unvested awards | $ 17,200 | |
Unrecognized compensation cost, period for recognition | 2 years 1 month 6 days | |
Stock-based compensation expense | $ 1,200 | 800 |
Internally Developed Software | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense, capitalized amount | $ 1,000 | $ 1,600 |
Employee Incentive Plans - RSU
Employee Incentive Plans - RSU and PBRSU Activity and Weighted Average Grant Date Fair Value table (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
RSUs | |
Number of Shares (shares) | |
Unvested, beginning (shares) | shares | 11,395,112 |
Granted (shares) | shares | 4,415,391 |
Vested (shares) | shares | (1,011,815) |
Forfeited/expired (shares) | shares | (496,946) |
Unvested, ending (shares) | shares | 14,301,742 |
Weighted- Average Grant Date Fair Value ($ per share) | |
Unvested, beginning ($ per share) | $ / shares | $ 11.26 |
Granted ($ per share) | $ / shares | 11.15 |
Vested ($ per share) | $ / shares | 13.57 |
Forfeited/expired ($ per share) | $ / shares | 12.21 |
Unvested, ending ($ per share) | $ / shares | $ 11.03 |
PBRSUs | |
Number of Shares (shares) | |
Unvested, beginning (shares) | shares | 1,441,311 |
Granted (shares) | shares | 568,285 |
Vested (shares) | shares | (20,285) |
Unvested, ending (shares) | shares | 1,989,311 |
Weighted- Average Grant Date Fair Value ($ per share) | |
Unvested, beginning ($ per share) | $ / shares | $ 5.31 |
Granted ($ per share) | $ / shares | 22.54 |
Vested ($ per share) | $ / shares | 22.59 |
Unvested, ending ($ per share) | $ / shares | $ 10.12 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (2,821) | $ 319 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Sales-type lease, interest income | $ 1,900,000 | ||
Lease renewal term | 15 years | ||
Security deposit | $ 800,000 | ||
Letters of credit outstanding, amount | 5,500,000 | ||
Operating lease assets | 84,931,000 | $ 0 | |
Present value of future minimum lease payments | 104,220,000 | $ 0 | |
Right-of-use asset, adjustment | 1,700,000 | ||
Operating lease impairment | 1,000,000 | $ 0 | |
Radius Bancorp, Inc. Merger | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 5,000,000 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 1 year | ||
Sublease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 10 years |
Leases - Components of Equipmen
Leases - Components of Equipment Finance Assets (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
Lease receivables | $ 111,571 |
Unguaranteed residual asset values | 36,646 |
Unearned income | (2,455) |
Deferred fees | 123 |
Total | $ 145,885 |
Leases- Future Minimum Lease Pa
Leases- Future Minimum Lease Payments Receivable (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 32,252 |
2022 | 37,073 |
2023 | 27,303 |
2024 | 17,568 |
2025 | 9,393 |
Thereafter | 8,772 |
Present value of future minimum lease payments | 132,361 |
Discount effect | (20,790) |
Present value of future minimum lease payments | $ 111,571 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 84,931 | $ 0 |
Operating lease liabilities | $ 104,220 | 0 |
Previously Reported | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 74,037 | |
Operating lease liabilities | $ 94,538 |
Leases - Net Lease Costs (Detai
Leases - Net Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Sublease revenue | $ 1,537 | $ 1,534 |
Net lease costs | (3,440) | (3,086) |
Variable lease costs | 100 | 400 |
Occupancy | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | (4,977) | (4,620) |
Other non-interest income | ||
Lessee, Lease, Description [Line Items] | ||
Sublease revenue | $ 1,537 | $ 1,534 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Leased assets obtained in exchange for new and amended operating lease liabilities | $ 12,914 | $ 0 |
Leases - Future Operating Lease
Leases - Future Operating Lease Payments and Sublease Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 16,148 | |
2022 | 15,947 | |
2023 | 12,465 | |
2024 | 12,810 | |
2025 | 13,163 | |
Thereafter | 62,350 | |
Total lease payments | 132,883 | |
Discount effect | 28,663 | |
Present value of future minimum lease payments | 104,220 | $ 0 |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | ||
2021 | 5,079 | |
2022 | (2,918) | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total lease payments | (7,997) | |
Operating Lease Payments, Net [Abstract] | ||
2021 | 11,069 | |
2022 | 13,029 | |
2023 | 12,465 | |
2024 | 12,810 | |
2025 | 13,163 | |
Thereafter | 62,350 | |
Total lease payments | $ 124,886 |
Leases - Weighted-average Lease
Leases - Weighted-average Lease Term and Discount Rate (Details) | Mar. 31, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 8 years 8 months 8 days |
Weighted-average discount rate (percent) | 5.40% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies [Line Items] | |||
Loan purchase obligation period | 2 days | ||
Contingent loan purchase commitment limit | $ 13,800 | ||
Commitment repurchases | $ 200 | $ 1,100 | |
Deposit | 9,000 | 9,000 | |
Loan purchase obligation | 7,100 | $ 13,200 | |
Fair value | 9,200 | 4,500 | |
Contingent liabilities | 21,988 | $ 21,592 | |
Letters of credit outstanding, amount | $ 5,500 |
Commitment and Contingencies -
Commitment and Contingencies - Schedule of Unfunded Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other Commitments [Line Items] | ||
Unfunded loan commitments | $ 410 | $ 0 |
Unfunded Loan Commitment, Fixed, Commitments To Extend Credit | ||
Other Commitments [Line Items] | ||
Unfunded loan commitments | 0 | |
Unfunded Loan Commitment, Variable, Commitments To Extend Credit | ||
Other Commitments [Line Items] | ||
Unfunded loan commitments | 57,853 | |
Unfunded Loan Commitment, Commitments To Extend Credit | ||
Other Commitments [Line Items] | ||
Unfunded loan commitments | 57,853 | |
Unfunded Loan Commitment, Fixed, Lines Of Credit | ||
Other Commitments [Line Items] | ||
Unfunded loan commitments | 3,338 | |
Unfunded Loan Commitment, Variable, Lines Of Credit | ||
Other Commitments [Line Items] | ||
Unfunded loan commitments | 37,129 | |
Unfunded Loan Commitment, Lines Of Credit | ||
Other Commitments [Line Items] | ||
Unfunded loan commitments | $ 40,467 |
Regulatory Requirements - Narra
Regulatory Requirements - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Regulated Operations [Abstract] | |
Common equity tier one risk-based capital ratio, internal minimum | 11.00% |
Tier one risk-based capital ratio, internal minimum | 11.00% |
Total risk-based capital ratio, internal minimum | 13.00% |
Tier one leverage ratio, internal minimum | 11.00% |
Capital benefit used in the computation of common equity tier one capital | $ 6.1 |
Regulatory Requirements - Summa
Regulatory Requirements - Summary of Regulatory Capital and Ratios (Details) | Mar. 31, 2021USD ($) |
LendingClub | |
Amount | |
CET1 capital | $ 578,100 |
Tier 1 capital | 578,100 |
Total capital | 611,800 |
Tier 1 leverage | 578,100 |
Risk-weighted assets | 2,224,000 |
Quarterly adjusted average assets | $ 3,974,300 |
Ratio | |
CET1 capital | 0.260 |
Tier 1 capital | 0.260 |
Total capital | 0.275 |
Tier 1 leverage | 0.145 |
Minimum to be Well Capitalized, Ratio [Abstract] | |
CET1 capital | 0.070 |
Tier 1 capital | 0.085 |
Total capital | 0.105 |
Tier 1 leverage | 0.040 |
LendingClub Bank | |
Amount | |
CET1 capital | $ 338,900 |
Tier 1 capital | 338,900 |
Total capital | 356,900 |
Tier 1 leverage | 338,900 |
Risk-weighted assets | 1,617,900 |
Quarterly adjusted average assets | $ 2,626,300 |
Ratio | |
CET1 capital | 0.209 |
Tier 1 capital | 0.209 |
Total capital | 0.221 |
Tier 1 leverage | 0.129 |
Minimum to be Well Capitalized, Ratio [Abstract] | |
CET1 capital | 0.070 |
Tier 1 capital | 0.085 |
Total capital | 0.105 |
Tier 1 leverage | 0.040 |
Other Non-interest Income and_3
Other Non-interest Income and Non-interest Expense - Summary of Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Other Income and Expenses [Abstract] | |||
Referral revenue | $ 2,594 | $ 1,614 | |
Sublease revenue | 1,537 | 1,534 | |
Realized gains (losses) on sales of securities available for sale | (244) | 1 | |
Other | 1,720 | 1,362 | |
Other non-interest income | $ 5,607 | [1] | $ 4,511 |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Other Non-interest Income and_4
Other Non-interest Income and Non-interest Expense Summary of Other Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Other Income and Expenses [Abstract] | |||
Consumer credit services | $ 3,292 | $ 5,507 | |
Third-party collection fees | 1,749 | 2,609 | |
Insurance expense | 1,347 | 1,164 | |
Other | 5,737 | 3,751 | |
Other non-interest expense | $ 12,125 | [1] | $ 13,031 |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Segment Reporting - Statements
Segment Reporting - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | ||||
Segment Reporting Information [Line Items] | |||||
Marketplace revenue | $ 81,727 | $ 102,477 | [1] | ||
Other non-interest income | 5,607 | [1] | 4,511 | ||
Total non-interest income | 87,334 | 106,988 | |||
Interest income | 44,590 | 69,411 | [1] | ||
Interest expense | [1] | (26,084) | (45,213) | ||
Net interest income | 18,506 | 24,198 | |||
Total net revenue | [1] | 105,840 | 131,186 | ||
Provision for credit losses | (21,493) | (10,980) | [1] | ||
Non-interest expense | (134,252) | [1] | (167,974) | ||
Loss before income tax expense | (49,905) | (47,768) | |||
Capital expenditures | 6,365 | 11,435 | |||
Depreciation and amortization | 11,766 | [1] | 12,873 | ||
Intercompany Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Marketplace revenue | 0 | 0 | |||
Other non-interest income | (18,191) | 0 | |||
Total non-interest income | (18,191) | 0 | |||
Interest income | 0 | 0 | |||
Interest expense | 0 | 0 | |||
Net interest income | 0 | 0 | |||
Total net revenue | (18,191) | 0 | |||
Provision for credit losses | 0 | 0 | |||
Non-interest expense | 18,191 | 0 | |||
Loss before income tax expense | 0 | 0 | |||
Capital expenditures | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | |||
LendingClub | |||||
Segment Reporting Information [Line Items] | |||||
Marketplace revenue | 102,477 | ||||
Other non-interest income | 4,511 | ||||
Total non-interest income | 106,988 | ||||
Interest income | 69,411 | ||||
Total net revenue | 131,186 | ||||
Provision for credit losses | (10,980) | ||||
Non-interest expense | (167,974) | ||||
Loss before income tax expense | (47,768) | ||||
Depreciation and amortization | 12,873 | ||||
LendingClub | Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Marketplace revenue | 45,665 | 102,477 | |||
Other non-interest income | 4,098 | 4,511 | |||
Total non-interest income | 49,763 | 106,988 | |||
Interest income | 27,092 | 69,411 | |||
Interest expense | (24,837) | (45,213) | |||
Net interest income | 2,255 | 24,198 | |||
Total net revenue | 52,018 | 131,186 | |||
Provision for credit losses | 2,470 | (10,980) | |||
Non-interest expense | (76,944) | (167,974) | |||
Loss before income tax expense | (22,456) | (47,768) | |||
Capital expenditures | 1,811 | 11,435 | |||
Depreciation and amortization | 11,150 | 12,873 | |||
LendingClub Bank | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Marketplace revenue | 36,062 | 0 | |||
Other non-interest income | 19,700 | 0 | |||
Total non-interest income | 55,762 | 0 | |||
Interest income | 17,498 | 0 | |||
Interest expense | (1,247) | 0 | |||
Net interest income | 16,251 | 0 | |||
Total net revenue | 72,013 | 0 | |||
Provision for credit losses | (23,963) | 0 | |||
Non-interest expense | (75,499) | 0 | |||
Loss before income tax expense | (27,449) | 0 | |||
Capital expenditures | 4,554 | 0 | |||
Depreciation and amortization | $ 616 | $ 0 | |||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Segment Reporting - Balance She
Segment Reporting - Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |||
Assets | |||||||
Total cash and cash equivalents | $ 831,800 | [1] | $ 524,963 | ||||
Restricted cash | [1],[2] | 139,080 | 103,522 | ||||
Fair Value | [1] | 274,419 | 142,226 | ||||
Loans held for sale at fair value | 166,623 | 121,902 | |||||
Other loans held for investment at fair value | 2,079,300 | 0 | |||||
Retail and certificate loans held for investment at fair value | 507,157 | 636,686 | [1],[2] | ||||
Other loans held for investment at fair value | [1],[2] | 42,485 | 49,954 | ||||
Property, equipment and software, net | [1] | 95,313 | 96,641 | ||||
Investment in subsidiary | 0 | 0 | |||||
Goodwill | [1] | 75,717 | 0 | ||||
Other Assets | [1],[2] | 279,195 | 187,399 | ||||
Total assets | [1] | 4,491,089 | 1,863,293 | ||||
Liabilities and Equity | |||||||
Total deposits | [1] | 2,373,437 | 0 | ||||
Retail notes, certificates and secured borrowings at fair value | [1] | 90,091 | 104,989 | ||||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | [1] | 370,086 | 0 | ||||
Retail notes, certificates and secured borrowings at fair value | 507,203 | 636,774 | [1],[2] | ||||
Payable on Structured Program borrowings | 133,499 | 152,808 | [1],[2] | ||||
Other long-term debt | [1] | 18,572 | 0 | ||||
Other liabilities | [1],[2] | 265,066 | 244,551 | ||||
Liabilities | [1] | 3,757,954 | 1,139,122 | ||||
Total equity | 733,135 | [1] | 724,171 | [1] | $ 796,546 | $ 900,187 | |
Total liabilities and equity | [1] | 4,491,089 | 1,863,293 | ||||
Corporate, Non-Segment | LendingClub | |||||||
Assets | |||||||
Total cash and cash equivalents | 75,950 | 524,963 | |||||
Restricted cash | 139,080 | 103,522 | |||||
Fair Value | 122,766 | 142,226 | |||||
Loans held for sale at fair value | 105,792 | 121,902 | |||||
Other loans held for investment at fair value | 0 | 0 | |||||
Retail and certificate loans held for investment at fair value | 507,157 | 636,686 | |||||
Other loans held for investment at fair value | 42,485 | 49,954 | |||||
Property, equipment and software, net | 88,364 | 96,641 | |||||
Investment in subsidiary | 458,917 | 0 | |||||
Goodwill | 0 | 0 | |||||
Other Assets | 206,756 | 187,399 | |||||
Total assets | 1,747,267 | 1,863,293 | |||||
Liabilities and Equity | |||||||
Total deposits | 0 | 0 | |||||
Retail notes, certificates and secured borrowings at fair value | 87,347 | 104,989 | |||||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 0 | 0 | |||||
Retail notes, certificates and secured borrowings at fair value | 507,203 | 636,774 | |||||
Payable on Structured Program borrowings | 133,499 | 152,808 | |||||
Other long-term debt | 15,738 | 0 | |||||
Other liabilities | 240,486 | 244,551 | |||||
Liabilities | 984,273 | 1,139,122 | |||||
Total equity | 762,994 | 724,171 | |||||
Total liabilities and equity | 1,747,267 | 1,863,293 | |||||
Operating Segments | LendingClub Bank | |||||||
Assets | |||||||
Total cash and cash equivalents | 792,701 | 0 | |||||
Restricted cash | 0 | 0 | |||||
Fair Value | 151,653 | 0 | |||||
Loans held for sale at fair value | 60,831 | 0 | |||||
Other loans held for investment at fair value | 2,079,300 | 0 | |||||
Retail and certificate loans held for investment at fair value | 0 | 0 | |||||
Other loans held for investment at fair value | 0 | 0 | |||||
Property, equipment and software, net | 6,949 | 0 | |||||
Investment in subsidiary | 0 | 0 | |||||
Goodwill | 75,717 | 0 | |||||
Other Assets | 123,227 | 0 | |||||
Total assets | 3,290,378 | 0 | |||||
Liabilities and Equity | |||||||
Total deposits | 2,410,288 | 0 | |||||
Retail notes, certificates and secured borrowings at fair value | 2,744 | 0 | |||||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 370,086 | 0 | |||||
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |||||
Payable on Structured Program borrowings | 0 | 0 | |||||
Other long-term debt | 2,834 | 0 | |||||
Other liabilities | 75,875 | 0 | |||||
Liabilities | 2,861,827 | 0 | |||||
Total equity | 428,551 | 0 | |||||
Total liabilities and equity | 3,290,378 | 0 | |||||
Intercompany Eliminations | |||||||
Assets | |||||||
Total cash and cash equivalents | (36,851) | 0 | |||||
Restricted cash | 0 | 0 | |||||
Fair Value | 0 | 0 | |||||
Loans held for sale at fair value | 0 | 0 | |||||
Other loans held for investment at fair value | 0 | 0 | |||||
Retail and certificate loans held for investment at fair value | 0 | 0 | |||||
Other loans held for investment at fair value | 0 | 0 | |||||
Property, equipment and software, net | 0 | 0 | |||||
Investment in subsidiary | (458,917) | 0 | |||||
Goodwill | 0 | 0 | |||||
Other Assets | (50,788) | 0 | |||||
Total assets | (546,556) | 0 | |||||
Liabilities and Equity | |||||||
Total deposits | (36,851) | 0 | |||||
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |||||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 0 | 0 | |||||
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |||||
Payable on Structured Program borrowings | 0 | 0 | |||||
Other long-term debt | 0 | 0 | |||||
Other liabilities | (51,295) | 0 | |||||
Liabilities | (88,146) | 0 | |||||
Total equity | (458,410) | 0 | |||||
Total liabilities and equity | $ (546,556) | $ 0 | |||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Condensed Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||||
[2] | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
Related Party Transactions - Su
Related Party Transactions - Summary of Deposits and Withdrawals Made by Related Parties (Detail) - USD ($) $ / shares in Units, $ in Millions | Mar. 20, 2020 | Mar. 31, 2021 |
Related Party Transaction [Line Items] | ||
One-time cash payment | $ 50.2 | |
Other Assets | ||
Related Party Transaction [Line Items] | ||
Equity method investment | $ 7.8 | |
Ownership (percent) | 22.00% | |
Common Stock | Largest Stockholder | ||
Related Party Transaction [Line Items] | ||
Conversion of stock, shares of common stock converted and retired (in shares) | 19,562,881 | |
Series A Preferred Stock | ||
Related Party Transaction [Line Items] | ||
Preferred stock, par value ($ per share) | $ 0.01 | |
Series A Preferred Stock | Largest Stockholder | ||
Related Party Transaction [Line Items] | ||
Conversion of stock, shares issued (in shares) | 195,628 |