Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | On Deck Capital, Inc. | |
Entity Central Index Key | 1,420,811 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 75,046,285 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 71,304 | $ 71,362 |
Restricted cash | 48,919 | 43,462 |
Loans held for investment | 1,117,828 | 952,796 |
Less: Allowance for loan losses | (133,644) | (109,015) |
Loans held for investment, net | 984,184 | 843,781 |
Property, equipment and software, net | 16,286 | 23,572 |
Other assets | 19,240 | 13,867 |
Total assets | 1,139,933 | 996,044 |
Liabilities: | ||
Accounts payable | 5,651 | 2,674 |
Interest payable | 2,132 | 2,330 |
Accrued expenses and other liabilities | 29,500 | 32,730 |
Total liabilities | 849,711 | 729,988 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity (deficit): | ||
Common stock—$0.005 par value, 1,000,000,000 shares authorized and 78,631,018 and 77,284,266 shares issued and 75,029,010 and 73,822,001 outstanding at September 30, 2018 and December 31, 2017, respectively. | 393 | 386 |
Treasury stock—at cost | (8,766) | (7,965) |
Additional paid-in capital | 503,049 | 492,509 |
Accumulated deficit | (209,191) | (222,833) |
Accumulated other comprehensive loss | (503) | (52) |
Total On Deck Capital, Inc. stockholders' equity | 284,982 | 262,045 |
Noncontrolling interest | 5,240 | 4,011 |
Total equity | 290,222 | 266,056 |
Total liabilities and equity | 1,139,933 | 996,044 |
Funding debt | ||
Liabilities: | ||
Debt | 812,428 | 684,269 |
Corporate debt | ||
Liabilities: | ||
Debt | $ 0 | $ 7,985 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 78,631,018 | 77,284,266 |
Common stock, shares outstanding (in shares) | 75,029,010 | 73,822,001 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Interest income | $ 99,476 | $ 80,122 | $ 278,216 | $ 250,954 |
Gain on sales of loans | 0 | 146 | 0 | 1,890 |
Other revenue | 3,523 | 3,398 | 10,681 | 10,365 |
Gross revenue | 102,999 | 83,666 | 288,897 | 263,209 |
Cost of revenue: | ||||
Provision for loan losses | 39,102 | 39,582 | 108,688 | 118,495 |
Funding costs | 11,665 | 11,330 | 35,688 | 34,223 |
Total cost of revenue | 50,767 | 50,912 | 144,376 | 152,718 |
Net revenue | 52,232 | 32,754 | 144,521 | 110,491 |
Operating expense: | ||||
Sales and marketing | 10,845 | 11,903 | 32,875 | 42,090 |
Technology and analytics | 13,418 | 11,748 | 37,224 | 41,960 |
Processing and servicing | 5,302 | 4,160 | 15,564 | 13,521 |
General and administrative | 13,107 | 9,440 | 46,866 | 30,917 |
Total operating expense | 42,672 | 37,251 | 132,529 | 128,488 |
Income (loss) from operations | 9,560 | (4,497) | 11,992 | (17,997) |
Other expense: | ||||
Interest expense | 63 | 35 | 157 | 706 |
Total other expense | 63 | 35 | 157 | 706 |
Income (loss) before provision for income taxes | 9,497 | (4,532) | 11,835 | (18,703) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 9,497 | (4,532) | 11,835 | (18,703) |
Less: Net income (loss) attributable to noncontrolling interest | (272) | (458) | (1,807) | (2,073) |
Net income (loss) attributable to On Deck Capital, Inc. common stockholders | $ 9,769 | $ (4,074) | $ 13,642 | $ (16,630) |
Net income (loss) per share attributable to On Deck Capital, Inc. common stockholders: | ||||
Basic (in dollars per share) | $ 0.13 | $ (0.06) | $ 0.18 | $ (0.23) |
Diluted (in dollars per share) | $ 0.12 | $ (0.06) | $ 0.17 | $ (0.23) |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 74,715,592 | 73,272,085 | 74,362,211 | 72,613,221 |
Diluted (in shares) | 79,372,491 | 73,272,085 | 78,314,719 | 72,613,221 |
Comprehensive income (loss): | ||||
Net income (loss) | $ 9,497 | $ (4,532) | $ 11,835 | $ (18,703) |
Foreign currency translation adjustment | (306) | 246 | (815) | 682 |
Comprehensive income (loss) | 9,191 | (4,286) | 11,020 | (18,021) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (138) | 111 | (367) | 307 |
Less: Net income (loss) attributable to noncontrolling interest | (272) | (458) | (1,807) | (2,073) |
Comprehensive income (loss) attributable to On Deck Capital, Inc. common stockholders | $ 9,601 | $ (3,939) | $ 13,194 | $ (16,255) |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net income (loss) | $ 11,835 | $ (18,703) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Provision for loan losses | 108,688 | 118,495 |
Depreciation and amortization | 6,232 | 7,623 |
Amortization of debt issuance costs | 5,575 | 2,777 |
Stock-based compensation | 8,852 | 9,521 |
Amortization of net deferred origination costs | 41,180 | 36,419 |
Changes in servicing rights, at fair value | 223 | 1,440 |
Gain on sales of loans | 0 | (1,890) |
Unfunded loan commitment reserve | 829 | 227 |
Gain on extinguishment of debt | 0 | (312) |
Loss on disposal of fixed assets | 5,667 | 0 |
Gain on lease termination | (1,481) | 0 |
Changes in operating assets and liabilities: | ||
Other assets | (7,064) | 2,106 |
Accounts payable | 2,977 | (2,353) |
Interest payable | (198) | 91 |
Accrued expenses and other liabilities | (1,128) | (7,641) |
Originations of loans held for sale | 0 | (44,489) |
Capitalized net deferred origination costs of loans held for sale | 0 | (1,128) |
Proceeds from sale of loans held for sale | 0 | 45,921 |
Principal repayments of loans held for sale | 0 | 1,039 |
Net cash provided by operating activities | 182,187 | 149,143 |
Cash flows from investing activities | ||
Purchases of property, equipment and software | (677) | (1,129) |
Capitalized internal-use software | (3,738) | (2,226) |
Originations of term loans and lines of credit, excluding rollovers into new originations | (1,566,889) | (1,302,889) |
Proceeds from sale of loans held for investment | 0 | 12,396 |
Payments of net deferred origination costs | (46,659) | (32,747) |
Principal repayments of term loans and lines of credit | 1,324,078 | 1,220,673 |
Purchase of loans | (801) | (13,730) |
Net cash used in investing activities | (294,686) | (119,652) |
Cash flows from financing activities | ||
Investments by noncontrolling interests | 3,403 | 3,443 |
Purchase of treasury shares | (801) | (864) |
Proceeds from exercise of stock options and warrants | 76 | 490 |
Issuance of common stock under employee stock purchase plan | 1,435 | 1,838 |
Payments of debt issuance costs | (5,460) | (3,228) |
Distribution to noncontrolling interest | 0 | (1,000) |
Net cash provided by (used in) financing activities | 118,589 | (33,280) |
Effect of exchange rate changes on cash and cash equivalents | (691) | 824 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 5,399 | (2,965) |
Cash, cash equivalents, and restricted cash at beginning of year | 114,824 | 123,986 |
Cash, cash equivalents, and restricted cash at end of period | 120,223 | 121,021 |
Reconciliation to amounts on consolidated balance sheets | ||
Total cash, cash equivalents and restricted cash | 114,824 | 123,986 |
Supplemental disclosure of other cash flow information | ||
Cash paid for interest | 32,329 | 31,467 |
Supplemental disclosures of non-cash investing and financing activities | ||
Stock-based compensation included in capitalized internal-use software | 180 | 154 |
Unpaid principal balance of term loans rolled into new originations | 258,220 | 220,925 |
Funding debt | ||
Cash flows from financing activities | ||
Proceeds from the issuance of debt | 672,522 | 133,318 |
Repayment of debt | (544,586) | (156,477) |
Corporate debt | ||
Cash flows from financing activities | ||
Proceeds from the issuance of debt | 25,000 | 24,200 |
Repayment of debt | $ (33,000) | $ (35,000) |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies On Deck Capital, Inc.’s principal activity is providing financing to small businesses located throughout the United States, as well as Canada and Australia, through term loans and lines of credit. We use technology and analytics to aggregate data about a business and then quickly and efficiently analyze the creditworthiness of the business using our proprietary credit-scoring model. We originate most of the loans in our portfolio and also purchase loans from an issuing bank partner. We subsequently transfer most of our loan volume into one of our wholly-owned subsidiaries and also have the option to sell them through OnDeck Marketplace ® . Basis of Presentation and Principles of Consolidation We prepare our condensed consolidated financial statements and footnotes in accordance with accounting principles generally accepted in the United States of America, or GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. All intercompany transactions and accounts have been eliminated in consolidation. Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. When used in these notes to condensed consolidated financial statements, the terms "we," "us," "our" or similar terms refers to On Deck Capital, Inc. and its consolidated subsidiaries. We consolidate the financial position and results of operations of these entities. The noncontrolling interest, which is presented as a separate component of our consolidated equity, represents the minority owners' proportionate share of the equity of the jointly owned entities. The noncontrolling interest is adjusted for the minority owners' share of the earnings, losses, investments and distributions. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Significant estimates include allowance for loan losses, stock-based compensation expense, capitalized software development costs, the useful lives of long-lived assets, servicing assets/liabilities, loans purchased, and valuation allowance for deferred tax assets. We base our estimates on historical experience, current events and other factors we believe to be reasonable under the circumstances. These estimates and assumptions are inherently subjective in nature; actual results may differ from these estimates and assumptions. Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue Recognition , which creates ASC 606, Revenue from Contracts with Customers , and supersedes ASC 605, Revenue Recognition . ASU 2014-09 requires revenue to be recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services and also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. The FASB subsequently issued numerous amendments including ASU 2016-08 - Principal versus Agent Considerations , ASU 2016-10 - Identifying Performance Obligations and Licensing , and ASU 2016-12 - Narrow-Scope Improvements and Practical Expedients . Each amendment has the same effective date and transition requirements as the new revenue recognition standard. We adopted the new standard effective January 1, 2018 and applied the modified retrospective method of adoption. The adoption of ASC 606 did not have a material effect on our condensed consolidated financial statements and disclosures, nor did it result in a cumulative effect adjustment at the date of initial application. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 clarifies that transfers between cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents are not part of the entity’s operating, investing, and financing activities, and details of those transfers should not be reported as cash flow activities in the statement of cash flows. It requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted the new standard effective January 1, 2018 using the retrospective transition method for each period presented and no longer present restricted cash as a reconciling item in our consolidated statement of cash flows. For the nine months ended September 30, 2017 , cash flows from investing activities increased $12.3 million and the net decrease in cash and cash equivalents of $15.3 million became a net decrease in cash, cash equivalents and restricted cash of $3.0 million . Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases , which creates ASC 842, Leases , and supersedes ASC 840, Leases . ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. The new standard will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. This ASU provides a prospective transition option that would not require earlier periods to be restated upon adoption. We expect that most of our operating lease commitments will be recognized as operating lease liabilities and right-of-use assets upon adoption of the standard that will result in an offsetting increase in assets and liabilities on the Consolidated Balance Sheet. We do not expect the standard to impact our future results of operations or cash flows. The Company will adopt the standard in the first quarter of 2019 and apply the standard prospectively as of the adoption date. We expect to elect the package of practical expedients afforded under the standard which permit an entity not to: (i) reassess whether existing or expired contracts are or contain a lease, (ii) reassess the lease classification, and (iii) reassess any initial direct costs for any existing leases. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . ASU 2016-13 will change the impairment model and how entities measure credit losses for most financial assets. The standard requires entities to use the new expected credit loss impairment model which will replace the incurred loss model used today. The new guidance will be effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted after December 15, 2018, however, we anticipate adopting the standard on January 1, 2020. We are currently assessing the impact that the adoption of this guidance will have on our consolidated financial statements. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic and diluted net income (loss) per common share is calculated as follows (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Net Income (loss) $ 9,497 $ (4,532 ) $ 11,835 $ (18,703 ) Less: Net income (loss) attributable to noncontrolling interest (272 ) (458 ) (1,807 ) (2,073 ) Net income (loss) attributable to On Deck Capital, Inc. common stockholders $ 9,769 $ (4,074 ) $ 13,642 $ (16,630 ) Denominator: Weighted-average common shares outstanding, basic 74,715,592 73,272,085 74,362,211 72,613,221 Net income (loss) per common share, basic $ 0.13 $ (0.06 ) $ 0.18 $ (0.23 ) Effect of dilutive securities 4,656,899 — 3,952,508 — Weighted-average common shares outstanding, diluted 79,372,491 73,272,085 78,314,719 72,613,221 Net income (loss) per common share, diluted $ 0.12 $ (0.06 ) $ 0.17 $ (0.23 ) Anti-dilutive securities excluded 3,020,562 11,813,427 5,169,484 11,813,427 The difference between basic and diluted income per common share has been calculated using the Treasury Stock Method based on the assumed exercise of outstanding stock options, the vesting of restricted stock awards, and the issuance of stock under our employee stock purchase plan. For the three and nine months ended September 30, 2017, the effects of potentially dilutive items were anti-dilutive given our net losses. The following common share equivalent securities have been included in the calculation of dilutive weighted-average common shares outstanding: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Dilutive Common Share Equivalents Weighted Average common shares outstanding 74,715,592 73,272,085 74,362,211 72,613,221 Restricted stock units 1,616,072 — 1,083,237 — Stock options 3,040,827 — 2,869,271 — Employee stock purchase program — — — — Total dilutive common share equivalents 79,372,491 73,272,085 78,314,719 72,613,221 The following common share equivalent securities were excluded from the calculation of diluted net income per share attributable to common stockholders. Their effect would have been antidilutive for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Anti-Dilutive Common Share Equivalents Warrants to purchase common stock 22,000 22,000 22,000 22,000 Restricted stock units 124,582 3,528,871 527,326 3,528,871 Stock options 2,840,298 8,227,736 4,586,476 8,227,736 Employee stock purchase program 33,682 34,820 33,682 34,820 Total anti-dilutive common share equivalents 3,020,562 11,813,427 5,169,484 11,813,427 The weighted-average exercise price for warrants to purchase 22,000 shares of common stock was $14.50 as of September 30, 2018 . A warrant to purchase 1,985,846 shares expired in September 2018 as a result of performance conditions not being met by that time. That warrant was excluded in the prior year periods from the anti-dilutive common share equivalents as performance obligations had not been met. |
Loans Held for Investment and A
Loans Held for Investment and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans Held for Investment and Allowance for Loan Losses | Loans Held for Investment and Allowance for Loan Losses Loans Held for Investment and Allowance for Loan Losses Loans held for investment consisted of the following as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Term loans $ 928,091 $ 804,227 Lines of credit 167,702 132,012 Total unpaid principal balance 1,095,792 936,239 Net deferred origination costs 22,036 16,557 Total loans held for investment $ 1,117,828 $ 952,796 During the nine months ended September 30, 2018 and 2017 , we paid $0.8 million and $13.7 million , respectively, to purchase term loans that we previously sold to a third party. We include both loans we originate and loans originated by our issuing bank partner and later purchased by us as part of our originations. During the three months ended September 30, 2018 and 2017 we purchased loans from our issuing bank partner in the amount of $112.1 million and $101.6 million , respectively. During the nine months ended September 30, 2018 and 2017 we purchased loans from our issuing bank partner in the amount of $360.6 million and $367.3 million , respectively. The change in the allowance for loan losses for the three months and nine months ended September 30, 2018 and 2017 consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Balance at beginning of period $ 124,058 $ 105,217 $ 109,015 $ 110,162 Recoveries of loans previously charged off 3,306 5,330 9,857 12,173 Loans charged off (32,822 ) (45,257 ) (93,916 ) (135,958 ) Provision for loan losses 39,102 39,582 108,688 118,495 Allowance for loan losses at end of period $ 133,644 $ 104,872 $ 133,644 $ 104,872 When loans are charged off, we typically continue to attempt to recover amounts from the respective borrowers and guarantors, including, when we deem it appropriate, through formal legal action. Alternatively, we may sell previously charged-off loans to a third-party debt collector. The proceeds from these sales are recorded as a component of the recoveries of loans previously charged off. For the three months ended September 30, 2018 and 2017 , previously charged-off loans sold accounted for $0.2 million and $2.4 million , respectively, of recoveries of loans previously charged off. For the nine months ended September 30, 2018 and 2017 , previously charged-off loans sold accounted for $0.9 million and $6.2 million , respectively, of recoveries of loans previously charged off. As of September 30, 2018 and December 31, 2017 , our off-balance sheet credit exposure related to the undrawn line of credit balances was $243.2 million and $204.6 million , respectively. The related reserve on unfunded loan commitments was $5.2 million and $4.4 million as of September 30, 2018 and December 31, 2017 , respectively. Net adjustments to the accrual for unfunded loan commitments are included in general and administrative expense. The following table contains information, on a combined basis, regarding the unpaid principal balance of loans we originated and the amortized cost of loans purchased from third parties other than our issuing bank partner related to current, paying and non-paying delinquent loans as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Current loans $ 1,002,932 $ 850,060 Delinquent: paying (accrual status) 52,275 49,252 Delinquent: non-paying (non-accrual status) 40,585 36,927 Total $ 1,095,792 $ 936,239 The portion of the allowance for loan losses attributable to current loans was $87.1 million and $74.0 million as of September 30, 2018 and December 31, 2017 , respectively, while the portion of the allowance for loan losses attributable to delinquent loans was $46.5 million and $35.0 million as of September 30, 2018 and December 31, 2017 , respectively. The following table shows an aging analysis of the unpaid principal balance related to loans held for investment by delinquency status as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 By delinquency status: Current loans $ 1,002,932 $ 850,060 1-14 calendar days past due 22,573 23,611 15-29 calendar days past due 10,261 12,528 30-59 calendar days past due 18,671 22,059 60-89 calendar days past due 15,161 12,809 90 + calendar days past due 26,194 15,172 Total unpaid principal balance $ 1,095,792 $ 936,239 |
Servicing Rights
Servicing Rights | 9 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Servicing Rights | Servicing Rights As of September 30, 2018 and December 31, 2017 , the remaining unpaid principal balance of term loans we serviced that previously were sold was $ 132.0 million and $181.0 million , respectively. No loans were sold during the three and nine months ended September 30, 2018 . During the three months and nine months ended September 30, 2017 , we sold through OnDeck Marketplace loans with an unpaid principal balance of $5.3 million and $55.5 million , respectively. For the three months ended September 30, 2018 and 2017 , we earned $0.1 million and $0.4 million of servicing revenue, respectively. For the nine months ended September 30, 2018 and 2017 , we earned $0.6 million and $1.3 million of servicing revenue, respectively. The following table summarizes the activity related to the fair value of our servicing assets for the three months and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Fair value at the beginning of period $ 29 $ 701 $ 154 $ 1,131 Addition: Servicing resulting from transfers of financial assets 16 275 78 938 Changes in fair value: Change in inputs or assumptions used in the valuation model — — — — Other changes in fair value (1) (36 ) (347 ) (223 ) (1,440 ) Fair value at the end of period (Level 3) $ 9 $ 629 $ 9 $ 629 (1) Represents changes due to collection of expected cash flows through September 30, 2018 and 2017 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our outstanding debt as of September 30, 2018 and December 31, 2017 (in thousands): Outstanding Type Maturity Date Weighted Average Interest Rate at September 30, 2018 September 30, 2018 December 31, 2017 Funding Debt: ODAST II Series 2018-1 Securitization April 2022 (1) 3.8% $ 225,000 $ — ODAST II Series 2016-1 Securitization May 2020 (2) N/A — 250,000 ODART Revolving March 2019 4.7% 120,985 102,058 RAOD Revolving November 2018 5.3% 111,542 86,478 ODAC Revolving May 2019 (3) N/A — 62,350 ODAF Revolving February 2020 (3) N/A — 75,000 ODAF II Revolving August 2022 (4) 4.4% 111,119 — PORT II Revolving December 2018 4.7% 110,605 63,851 LAOD Revolving October 2022 (5) 4.1% 95,096 — Other Agreements Various Various (6) 7.4% 44,194 50,706 4.6% 818,541 690,443 Deferred debt issuance cost (6,113 ) (6,174 ) Total Funding Debt $ 812,428 $ 684,269 Corporate Debt: Square 1 Revolving October 2018 (7) 6.5% — 8,000 Deferred debt issuance cost — (15 ) Total Corporate Debt $ — $ 7,985 (1) The period during which new borrowings may be made under this facility expires in March 2020. (2) In April 2018, we issued $225 million of debt in a new ODAST II securitization transaction (Series 2018-1) and the net proceeds were used, together with other available funds, to voluntarily prepay in full all $250 million of the prior Series 2016-1 Notes. (3) This debt facility was voluntarily repaid in full and terminated in August 2018. (4) The period during which new borrowings may be made under this debt facility expires in August 2021. (5) The period during which new borrowings may be made under this debt facility expires in April 2022. (6) Maturity dates range from January 2020 through June 2021. (7) In October 2018 this debt facility was amended to extend the maturity date to January 2019. On August 8, 2018, our wholly-owned subsidiary, OnDeck Asset Funding II LLC, established a new asset-backed revolving debt facility with a commitment amount of $175 million and an interest rate of 1-month LIBOR + 3.0% . The period during which new borrowings may be made under this facility expires on August 6, 2021 and the final maturity date is August 8, 2022. Concurrent with closing this facility, the Company optionally prepaid in full and terminated the $100 million asset-backed revolving debt facility by and between, among others, On Deck Asset Company, LLC, as borrower, and WM 2016-1, LLC, as administrative agent. On August 14, 2018, our wholly-owned subsidiary, OnDeck Asset Funding I LLC, voluntarily prepaid in full and terminated the $150 million asset-backed revolving debt facility originally entered into in August 2016 by and between, among others, OnDeck Asset Funding I LLC, as borrower, and Ares Agent Services, L.P., as administrative agent. On October 4, 2018, On Deck Capital, Inc. amended its existing $30 million revolving debt facility to extend the maturity date of the facility to January 2019 and made various technical, definitional, conforming and other changes. Certain of our loans held for investment are pledged as collateral for borrowings in our funding debt facilities. These loans totaled $970.2 million and $852.3 million as of September 30, 2018 and December 31, 2017 , respectively. Our corporate debt facility is collateralized by substantially all of our assets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. Due to the lack of transparency and quantity of transactions related to trades of servicing rights of comparable loans, we utilize an income valuation technique to estimate fair value. We utilize industry-standard modeling, such as discounted cash flow models, to arrive at an estimate of fair value and may utilize third-party service providers to assist in the valuation process. This determination requires significant judgments to be made. The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 9 $ 9 Total assets $ — $ — $ 9 $ 9 December 31, 2017 Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 154 $ 154 Total assets $ — $ — $ 154 $ 154 There were no transfers between levels for the nine months ended September 30, 2018 or December 31, 2017 . The following tables presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurement as of September 30, 2018 and December 31, 2017 : September 30, 2018 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.04 % 0.13 % 0.13 % Renewal rate 41.06 % 51.83 % 50.56 % Default rate 10.63 % 10.92 % 10.68 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. December 31, 2017 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.04 % 0.13 % 0.12 % Renewal rate 41.06 % 51.83 % 49.59 % Default rate 10.63 % 10.92 % 10.70 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. Changes in certain of the unobservable inputs noted above may have a significant impact on the fair value of our servicing asset. The following table summarizes the effect adverse changes in estimate would have on the fair value of the servicing asset as of September 30, 2018 and December 31, 2017 given hypothetical changes in default rate and cost to service (in thousands): September 30, 2018 December 31, 2017 Servicing Assets Default rate assumption: Default rate increase of 25% $ (3 ) $ (40 ) Default rate increase of 50% $ (5 ) $ (76 ) Cost to service assumption: Cost to service increase by 25% $ (4 ) $ (63 ) Cost to service increase by 50% $ (9 ) $ (126 ) Assets and Liabilities Disclosed at Fair Value Because our loans held for investment and fixed-rate debt are not measured at fair value, we are required to disclose their fair value in accordance with ASC 825. Due to the lack of transparency and comparable loans, we utilize an income valuation technique to estimate fair value. We utilize industry-standard modeling, such as discounted cash flow models, to arrive at an estimate of fair value and may utilize third-party service providers to assist in the valuation process. This determination requires significant judgments to be made. The following tables summarize the carrying value and fair value of our loans held for investment and fixed-rate debt (in thousands): September 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Loans held for investment, net $ 984,184 $ 1,095,854 $ — $ — $ 1,095,854 Total assets $ 984,184 $ 1,095,854 $ — $ — $ 1,095,854 Liabilities: Fixed-rate debt $ 232,982 $ 223,022 $ — $ — $ 223,022 Total fixed-rate debt $ 232,982 $ 223,022 $ — $ — $ 223,022 December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Loans held for investment, net $ 843,781 $ 932,343 $ — $ — $ 932,343 Total assets $ 843,781 $ 932,343 $ — $ — $ 932,343 Liabilities: Fixed-rate debt $ 300,706 $ 293,512 $ — $ — $ 293,512 Total fixed-rate debt $ 300,706 $ 293,512 $ — $ — $ 293,512 |
Noncontrolling Interest
Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest The following tables summarize changes in equity, including the equity attributable to noncontrolling interests, for the nine months ended September 30, 2018 and 2017 (in thousands): Nine Months Ended September 30, 2018 On Deck Capital, Inc's stockholders' equity Noncontrolling interest Total Balance as of January 1, 2018 $ 262,045 $ 4,011 $ 266,056 Net income (loss) 13,642 (1,807 ) 11,835 Stock based compensation 8,573 — 8,573 Exercise of options and warrants 76 — 76 Employee Stock Purchase Plan 1,895 — 1,895 Cumulative translation adjustment (448 ) (367 ) (815 ) Purchase of treasury shares (801 ) — (801 ) Investments by noncontrolling interests — 3,403 3,403 Balance at September 30, 2018 284,982 5,240 290,222 Comprehensive loss: Net income (loss) 13,642 (1,807 ) 11,835 Other comprehensive income (loss): Foreign currency translation adjustment (448 ) (367 ) (815 ) Comprehensive income (loss): $ 13,194 $ (2,174 ) $ 11,020 Nine Months Ended September 30, 2017 On Deck Capital, Inc.'s stockholders' equity Noncontrolling interest Total Balance as of January 1, 2017 $ 259,525 $ 4,072 $ 263,597 Net income (loss) (16,630 ) (2,073 ) (18,703 ) Stock based compensation 9,115 — 9,115 Exercise of options and warrants 490 — 490 Employee stock purchase plan 2,299 — 2,299 Cumulative translation adjustment 375 307 682 Purchase of treasury shares (864 ) — (864 ) Investments by noncontrolling interests — 3,443 3,443 Return of equity to noncontrolling interest — (959 ) (959 ) Balance at September 30, 2017 254,310 4,790 259,100 Comprehensive loss: Net income (loss) (16,630 ) (2,073 ) (18,703 ) Other comprehensive income (loss): Foreign currency translation adjustment 375 307 682 Comprehensive income (loss): $ (16,255 ) $ (1,766 ) $ (18,021 ) In the third quarter of 2015, we acquired a 67% interest in an entity, with the remaining 33% owned by an unrelated third party strategic partner, for the purpose of providing small business loans to customers of the third party. We consolidate the financial position and results of operations of that entity. On June 29, 2017, OnDeck purchased the loans owned by that entity for an immaterial amount. That entity made a liquidating distribution to us of approximately $2 million and to the unrelated third party of approximately $1 million representing our respective proportionate share of the equity in that entity. The loan sale and distribution effectively ended the operations of that entity. No material gain or loss was recorded. |
Stock-Based Compensation and Em
Stock-Based Compensation and Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Employee Benefit Plans | Stock-Based Compensation and Employee Benefit Plans Options The following is a summary of option activity for the nine months ended September 30, 2018 : Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2018 7,918,853 $ 5.75 — — Granted 1,031,550 $ 5.41 — — Exercised (531,747 ) $ 0.98 — — Forfeited (212,410 ) $ 8.17 — — Expired (185,067 ) $ 10.91 — — Outstanding at September 30, 2018 8,021,179 $ 5.84 5.9 $ 24,922 Exercisable at September 30, 2018 6,329,697 $ 5.76 5.2 $ 21,739 Vested and expected to vest as of September 30, 2018 7,917,209 $ 5.85 5.9 $ 24,694 Total compensation cost related to nonvested option awards not yet recognized as of September 30, 2018 was $3.4 million and will be recognized over a weighted-average period of approximately 2.0 years. The aggregate intrinsic value of employee options exercised during the nine months ended September 30, 2018 and 2017 was $2.9 million and $5.0 million , respectively. Restricted Stock Units The following table summarizes our Restricted Stock Units ("RSUs") and Performance Restricted Stock Units ("PRSUs") activity during the nine months ended September 30, 2018 : Number of RSUs Weighted-Average Grant Date Fair Value Unvested at January 1, 2018 3,342,640 $ 6.18 RSUs and PRSUs granted 1,304,194 $ 5.71 RSUs vested (514,972 ) $ 7.60 RSUs forfeited/expired (404,092 ) $ 6.30 Unvested at September 30, 2018 3,727,770 $ 5.80 Expected to vest after September 30, 2018 3,066,327 $ 5.86 As of September 30, 2018 , there was $13 million of unrecognized compensation cost related to unvested RSUs and PRSUs, which is expected to be recognized over a weighted-average period of 2.6 years. Stock-based compensation expense related to stock options, RSUs, PRSUs and the Employee Stock Purchase Plan ("ESPP") are included in the following line items in our accompanying consolidated statements of operations for the three months and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Sales and marketing $ 452 $ 538 $ 1,492 $ 1,830 Technology and analytics 621 499 1,874 1,824 Processing and servicing 77 99 278 429 General and administrative 1,698 1,920 5,208 5,438 Total $ 2,848 $ 3,056 $ 8,852 $ 9,521 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments under Operating Leases Effective February 1, 2018, we terminated our lease obligation for the 12th floor of our New York office which accounted for approximately 32% of our total New York office space. The lease of the 12th floor was previously scheduled to continue through December 2026. As part of the termination, we paid the landlord a cash surrender fee of approximately $2.6 million and recorded a net charge of approximately $3.2 million in the quarter ending March 31, 2018. The net charge includes the surrender fee and approximately $4.0 million related to the impairment of leasehold improvements and other fixed assets in the surrendered space, which were partially offset by other deferred credits. On March 29, 2018, we terminated our lease obligation with respect to a portion of our Denver office which accounted for approximately 38% of our total Denver office space. Our lease of that space was previously scheduled to continue through April 2026. As part of the termination, we paid a surrender fee and related charges of approximately $900,000 and recorded a net charge of approximately $1 million in the quarter ended March 31, 2018. The net charge includes the surrender fee and the impairment of leasehold improvements and other fixed assets in the surrendered space, which were partially offset by other deferred credits. The net charges related to these lease terminations were allocated to each of our operating expense line items on our condensed consolidated statement of operations with the exception of the aggregate impairment charges of leasehold improvements and other fixed assets in the surrendered spaces of approximately $5.7 million which were included in general and administrative expense. In the aggregate, the termination of these two leases reduced future required rental payments by approximately $23 million through 2026. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash, cash equivalents, restricted cash and loans. We hold cash, cash equivalents and restricted cash in accounts at regulated domestic financial institutions in amounts that exceed or may exceed FDIC insured amounts and at non-U.S. financial institutions where deposited amounts may be uninsured. We believe these institutions to be of recognized standing and we have not experienced any related losses to date. We are exposed to default risk on loans we originate and hold and that we purchase from our issuing bank partner. We perform an evaluation of each customer's financial condition and during the term of the customer's loan(s), we have the contractual right to limit a customer's ability to take working capital loans or other financing from other lenders that may cause a material adverse change in the financial condition of the customer. Contingencies From time to time we are subject to legal proceedings and claims in the ordinary course of business. The results of such matters cannot be predicted with certainty. However, we believe that the final outcome of any such current matters will not result in a material adverse effect on our consolidated financial condition, consolidated results of operations or consolidated cash flows. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | We prepare our condensed consolidated financial statements and footnotes in accordance with accounting principles generally accepted in the United States of America, or GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. All intercompany transactions and accounts have been eliminated in consolidation. |
Reclassifications | Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Significant estimates include allowance for loan losses, stock-based compensation expense, capitalized software development costs, the useful lives of long-lived assets, servicing assets/liabilities, loans purchased, and valuation allowance for deferred tax assets. We base our estimates on historical experience, current events and other factors we believe to be reasonable under the circumstances. These estimates and assumptions are inherently subjective in nature; actual results may differ from these estimates and assumptions. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue Recognition , which creates ASC 606, Revenue from Contracts with Customers , and supersedes ASC 605, Revenue Recognition . ASU 2014-09 requires revenue to be recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services and also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. The FASB subsequently issued numerous amendments including ASU 2016-08 - Principal versus Agent Considerations , ASU 2016-10 - Identifying Performance Obligations and Licensing , and ASU 2016-12 - Narrow-Scope Improvements and Practical Expedients . Each amendment has the same effective date and transition requirements as the new revenue recognition standard. We adopted the new standard effective January 1, 2018 and applied the modified retrospective method of adoption. The adoption of ASC 606 did not have a material effect on our condensed consolidated financial statements and disclosures, nor did it result in a cumulative effect adjustment at the date of initial application. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 clarifies that transfers between cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents are not part of the entity’s operating, investing, and financing activities, and details of those transfers should not be reported as cash flow activities in the statement of cash flows. It requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted the new standard effective January 1, 2018 using the retrospective transition method for each period presented and no longer present restricted cash as a reconciling item in our consolidated statement of cash flows. For the nine months ended September 30, 2017 , cash flows from investing activities increased $12.3 million and the net decrease in cash and cash equivalents of $15.3 million became a net decrease in cash, cash equivalents and restricted cash of $3.0 million . Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases , which creates ASC 842, Leases , and supersedes ASC 840, Leases . ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. The new standard will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. This ASU provides a prospective transition option that would not require earlier periods to be restated upon adoption. We expect that most of our operating lease commitments will be recognized as operating lease liabilities and right-of-use assets upon adoption of the standard that will result in an offsetting increase in assets and liabilities on the Consolidated Balance Sheet. We do not expect the standard to impact our future results of operations or cash flows. The Company will adopt the standard in the first quarter of 2019 and apply the standard prospectively as of the adoption date. We expect to elect the package of practical expedients afforded under the standard which permit an entity not to: (i) reassess whether existing or expired contracts are or contain a lease, (ii) reassess the lease classification, and (iii) reassess any initial direct costs for any existing leases. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . ASU 2016-13 will change the impairment model and how entities measure credit losses for most financial assets. The standard requires entities to use the new expected credit loss impairment model which will replace the incurred loss model used today. The new guidance will be effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted after December 15, 2018, however, we anticipate adopting the standard on January 1, 2020. We are currently assessing the impact that the adoption of this guidance will have on our consolidated financial statements. |
Fair Value of Financial Instruments | We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. Due to the lack of transparency and quantity of transactions related to trades of servicing rights of comparable loans, we utilize an income valuation technique to estimate fair value. We utilize industry-standard modeling, such as discounted cash flow models, to arrive at an estimate of fair value and may utilize third-party service providers to assist in the valuation process. This determination requires significant judgments to be made. Because our loans held for investment and fixed-rate debt are not measured at fair value, we are required to disclose their fair value in accordance with ASC 825. Due to the lack of transparency and comparable loans, we utilize an income valuation technique to estimate fair value. We utilize industry-standard modeling, such as discounted cash flow models, to arrive at an estimate of fair value and may utilize third-party service providers to assist in the valuation process. This determination requires significant judgments to be made. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net income (loss) per common share is calculated as follows (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Net Income (loss) $ 9,497 $ (4,532 ) $ 11,835 $ (18,703 ) Less: Net income (loss) attributable to noncontrolling interest (272 ) (458 ) (1,807 ) (2,073 ) Net income (loss) attributable to On Deck Capital, Inc. common stockholders $ 9,769 $ (4,074 ) $ 13,642 $ (16,630 ) Denominator: Weighted-average common shares outstanding, basic 74,715,592 73,272,085 74,362,211 72,613,221 Net income (loss) per common share, basic $ 0.13 $ (0.06 ) $ 0.18 $ (0.23 ) Effect of dilutive securities 4,656,899 — 3,952,508 — Weighted-average common shares outstanding, diluted 79,372,491 73,272,085 78,314,719 72,613,221 Net income (loss) per common share, diluted $ 0.12 $ (0.06 ) $ 0.17 $ (0.23 ) Anti-dilutive securities excluded 3,020,562 11,813,427 5,169,484 11,813,427 |
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method | The following common share equivalent securities have been included in the calculation of dilutive weighted-average common shares outstanding: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Dilutive Common Share Equivalents Weighted Average common shares outstanding 74,715,592 73,272,085 74,362,211 72,613,221 Restricted stock units 1,616,072 — 1,083,237 — Stock options 3,040,827 — 2,869,271 — Employee stock purchase program — — — — Total dilutive common share equivalents 79,372,491 73,272,085 78,314,719 72,613,221 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following common share equivalent securities were excluded from the calculation of diluted net income per share attributable to common stockholders. Their effect would have been antidilutive for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Anti-Dilutive Common Share Equivalents Warrants to purchase common stock 22,000 22,000 22,000 22,000 Restricted stock units 124,582 3,528,871 527,326 3,528,871 Stock options 2,840,298 8,227,736 4,586,476 8,227,736 Employee stock purchase program 33,682 34,820 33,682 34,820 Total anti-dilutive common share equivalents 3,020,562 11,813,427 5,169,484 11,813,427 |
Loans Held for Investment and_2
Loans Held for Investment and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Loans | Loans held for investment consisted of the following as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Term loans $ 928,091 $ 804,227 Lines of credit 167,702 132,012 Total unpaid principal balance 1,095,792 936,239 Net deferred origination costs 22,036 16,557 Total loans held for investment $ 1,117,828 $ 952,796 |
Schedule of Allowance for Loan Losses | The change in the allowance for loan losses for the three months and nine months ended September 30, 2018 and 2017 consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Balance at beginning of period $ 124,058 $ 105,217 $ 109,015 $ 110,162 Recoveries of loans previously charged off 3,306 5,330 9,857 12,173 Loans charged off (32,822 ) (45,257 ) (93,916 ) (135,958 ) Provision for loan losses 39,102 39,582 108,688 118,495 Allowance for loan losses at end of period $ 133,644 $ 104,872 $ 133,644 $ 104,872 |
Schedule of Non-delinquent and Delinquent Loans | The following table shows an aging analysis of the unpaid principal balance related to loans held for investment by delinquency status as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 By delinquency status: Current loans $ 1,002,932 $ 850,060 1-14 calendar days past due 22,573 23,611 15-29 calendar days past due 10,261 12,528 30-59 calendar days past due 18,671 22,059 60-89 calendar days past due 15,161 12,809 90 + calendar days past due 26,194 15,172 Total unpaid principal balance $ 1,095,792 $ 936,239 The following table contains information, on a combined basis, regarding the unpaid principal balance of loans we originated and the amortized cost of loans purchased from third parties other than our issuing bank partner related to current, paying and non-paying delinquent loans as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Current loans $ 1,002,932 $ 850,060 Delinquent: paying (accrual status) 52,275 49,252 Delinquent: non-paying (non-accrual status) 40,585 36,927 Total $ 1,095,792 $ 936,239 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Summary of Activity for Servicing Assets | The following table summarizes the activity related to the fair value of our servicing assets for the three months and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Fair value at the beginning of period $ 29 $ 701 $ 154 $ 1,131 Addition: Servicing resulting from transfers of financial assets 16 275 78 938 Changes in fair value: Change in inputs or assumptions used in the valuation model — — — — Other changes in fair value (1) (36 ) (347 ) (223 ) (1,440 ) Fair value at the end of period (Level 3) $ 9 $ 629 $ 9 $ 629 (1) Represents changes due to collection of expected cash flows through September 30, 2018 and 2017 . |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following table summarizes our outstanding debt as of September 30, 2018 and December 31, 2017 (in thousands): Outstanding Type Maturity Date Weighted Average Interest Rate at September 30, 2018 September 30, 2018 December 31, 2017 Funding Debt: ODAST II Series 2018-1 Securitization April 2022 (1) 3.8% $ 225,000 $ — ODAST II Series 2016-1 Securitization May 2020 (2) N/A — 250,000 ODART Revolving March 2019 4.7% 120,985 102,058 RAOD Revolving November 2018 5.3% 111,542 86,478 ODAC Revolving May 2019 (3) N/A — 62,350 ODAF Revolving February 2020 (3) N/A — 75,000 ODAF II Revolving August 2022 (4) 4.4% 111,119 — PORT II Revolving December 2018 4.7% 110,605 63,851 LAOD Revolving October 2022 (5) 4.1% 95,096 — Other Agreements Various Various (6) 7.4% 44,194 50,706 4.6% 818,541 690,443 Deferred debt issuance cost (6,113 ) (6,174 ) Total Funding Debt $ 812,428 $ 684,269 Corporate Debt: Square 1 Revolving October 2018 (7) 6.5% — 8,000 Deferred debt issuance cost — (15 ) Total Corporate Debt $ — $ 7,985 (1) The period during which new borrowings may be made under this facility expires in March 2020. (2) In April 2018, we issued $225 million of debt in a new ODAST II securitization transaction (Series 2018-1) and the net proceeds were used, together with other available funds, to voluntarily prepay in full all $250 million of the prior Series 2016-1 Notes. (3) This debt facility was voluntarily repaid in full and terminated in August 2018. (4) The period during which new borrowings may be made under this debt facility expires in August 2021. (5) The period during which new borrowings may be made under this debt facility expires in April 2022. (6) Maturity dates range from January 2020 through June 2021. (7) In October 2018 this debt facility was amended to extend the maturity date to January 2019. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 9 $ 9 Total assets $ — $ — $ 9 $ 9 December 31, 2017 Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 154 $ 154 Total assets $ — $ — $ 154 $ 154 |
Summary of Significant Unobservable Inputs for Level 3 Fair Value Measurement | The following tables presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurement as of September 30, 2018 and December 31, 2017 : September 30, 2018 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.04 % 0.13 % 0.13 % Renewal rate 41.06 % 51.83 % 50.56 % Default rate 10.63 % 10.92 % 10.68 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. December 31, 2017 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.04 % 0.13 % 0.12 % Renewal rate 41.06 % 51.83 % 49.59 % Default rate 10.63 % 10.92 % 10.70 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. |
Summary of Effect on Changes in Estimate for Servicing Asset Fair Value | The following table summarizes the effect adverse changes in estimate would have on the fair value of the servicing asset as of September 30, 2018 and December 31, 2017 given hypothetical changes in default rate and cost to service (in thousands): September 30, 2018 December 31, 2017 Servicing Assets Default rate assumption: Default rate increase of 25% $ (3 ) $ (40 ) Default rate increase of 50% $ (5 ) $ (76 ) Cost to service assumption: Cost to service increase by 25% $ (4 ) $ (63 ) Cost to service increase by 50% $ (9 ) $ (126 ) |
Schedule of Assets and Liabilities Disclosed at Fair Value | The following tables summarize the carrying value and fair value of our loans held for investment and fixed-rate debt (in thousands): September 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Loans held for investment, net $ 984,184 $ 1,095,854 $ — $ — $ 1,095,854 Total assets $ 984,184 $ 1,095,854 $ — $ — $ 1,095,854 Liabilities: Fixed-rate debt $ 232,982 $ 223,022 $ — $ — $ 223,022 Total fixed-rate debt $ 232,982 $ 223,022 $ — $ — $ 223,022 December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Loans held for investment, net $ 843,781 $ 932,343 $ — $ — $ 932,343 Total assets $ 843,781 $ 932,343 $ — $ — $ 932,343 Liabilities: Fixed-rate debt $ 300,706 $ 293,512 $ — $ — $ 293,512 Total fixed-rate debt $ 300,706 $ 293,512 $ — $ — $ 293,512 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Equity | The following tables summarize changes in equity, including the equity attributable to noncontrolling interests, for the nine months ended September 30, 2018 and 2017 (in thousands): Nine Months Ended September 30, 2018 On Deck Capital, Inc's stockholders' equity Noncontrolling interest Total Balance as of January 1, 2018 $ 262,045 $ 4,011 $ 266,056 Net income (loss) 13,642 (1,807 ) 11,835 Stock based compensation 8,573 — 8,573 Exercise of options and warrants 76 — 76 Employee Stock Purchase Plan 1,895 — 1,895 Cumulative translation adjustment (448 ) (367 ) (815 ) Purchase of treasury shares (801 ) — (801 ) Investments by noncontrolling interests — 3,403 3,403 Balance at September 30, 2018 284,982 5,240 290,222 Comprehensive loss: Net income (loss) 13,642 (1,807 ) 11,835 Other comprehensive income (loss): Foreign currency translation adjustment (448 ) (367 ) (815 ) Comprehensive income (loss): $ 13,194 $ (2,174 ) $ 11,020 Nine Months Ended September 30, 2017 On Deck Capital, Inc.'s stockholders' equity Noncontrolling interest Total Balance as of January 1, 2017 $ 259,525 $ 4,072 $ 263,597 Net income (loss) (16,630 ) (2,073 ) (18,703 ) Stock based compensation 9,115 — 9,115 Exercise of options and warrants 490 — 490 Employee stock purchase plan 2,299 — 2,299 Cumulative translation adjustment 375 307 682 Purchase of treasury shares (864 ) — (864 ) Investments by noncontrolling interests — 3,443 3,443 Return of equity to noncontrolling interest — (959 ) (959 ) Balance at September 30, 2017 254,310 4,790 259,100 Comprehensive loss: Net income (loss) (16,630 ) (2,073 ) (18,703 ) Other comprehensive income (loss): Foreign currency translation adjustment 375 307 682 Comprehensive income (loss): $ (16,255 ) $ (1,766 ) $ (18,021 ) |
Stock-Based Compensation and _2
Stock-Based Compensation and Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Activity | The following is a summary of option activity for the nine months ended September 30, 2018 : Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2018 7,918,853 $ 5.75 — — Granted 1,031,550 $ 5.41 — — Exercised (531,747 ) $ 0.98 — — Forfeited (212,410 ) $ 8.17 — — Expired (185,067 ) $ 10.91 — — Outstanding at September 30, 2018 8,021,179 $ 5.84 5.9 $ 24,922 Exercisable at September 30, 2018 6,329,697 $ 5.76 5.2 $ 21,739 Vested and expected to vest as of September 30, 2018 7,917,209 $ 5.85 5.9 $ 24,694 |
Schedule of Activities of RSUs | The following table summarizes our Restricted Stock Units ("RSUs") and Performance Restricted Stock Units ("PRSUs") activity during the nine months ended September 30, 2018 : Number of RSUs Weighted-Average Grant Date Fair Value Unvested at January 1, 2018 3,342,640 $ 6.18 RSUs and PRSUs granted 1,304,194 $ 5.71 RSUs vested (514,972 ) $ 7.60 RSUs forfeited/expired (404,092 ) $ 6.30 Unvested at September 30, 2018 3,727,770 $ 5.80 Expected to vest after September 30, 2018 3,066,327 $ 5.86 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs, PRSUs and the Employee Stock Purchase Plan ("ESPP") are included in the following line items in our accompanying consolidated statements of operations for the three months and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Sales and marketing $ 452 $ 538 $ 1,492 $ 1,830 Technology and analytics 621 499 1,874 1,824 Processing and servicing 77 99 278 429 General and administrative 1,698 1,920 5,208 5,438 Total $ 2,848 $ 3,056 $ 8,852 $ 9,521 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash flows from investing activities | $ (294,686) | $ (119,652) |
Net decrease in cash, cash equivalents and restricted cash | $ (5,399) | 2,965 |
Accounting Standards Update 2016-18 | Restatement Adjustment | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash flows from investing activities | 12,300 | |
Accounting Standards Update 2016-18 | Scenario, Previously Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net decrease in cash and cash equivalents | $ 15,300 |
Earnings Per Common Share (Basi
Earnings Per Common Share (Basic and Diluted Net Loss per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) | $ 9,497 | $ (4,532) | $ 11,835 | $ (18,703) |
Less: Net income (loss) attributable to noncontrolling interest | (272) | (458) | (1,807) | (2,073) |
Net income (loss) attributable to On Deck Capital, Inc. common stockholders | $ 9,769 | $ (4,074) | $ 13,642 | $ (16,630) |
Denominator: | ||||
Weighted-average common shares outstanding, basic (in shares) | 74,715,592 | 73,272,085 | 74,362,211 | 72,613,221 |
Net income (loss) per common share, basic (in dollars per share) | $ 0.13 | $ (0.06) | $ 0.18 | $ (0.23) |
Effect of dilutive securities (in shares) | 4,656,899 | 0 | 3,952,508 | 0 |
Weighted-average common shares outstanding, diluted (in shares) | 79,372,491 | 73,272,085 | 78,314,719 | 72,613,221 |
Net income (loss) per common share, diluted (in dollars per share) | $ 0.12 | $ (0.06) | $ 0.17 | $ (0.23) |
Anti-dilutive securities excluded (in shares) | 3,020,562 | 11,813,427 | 5,169,484 | 11,813,427 |
Earnings Per Common Share (Dilu
Earnings Per Common Share (Dilutive Common Share Equivalents) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted-average common shares outstanding, basic (in shares) | 74,715,592 | 73,272,085 | 74,362,211 | 72,613,221 |
Effect of dilutive securities (in shares) | 4,656,899 | 0 | 3,952,508 | 0 |
Weighted-average common shares outstanding, diluted (in shares) | 79,372,491 | 73,272,085 | 78,314,719 | 72,613,221 |
Restricted stock units | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Effect of dilutive securities (in shares) | 1,616,072 | 0 | 1,083,237 | 0 |
Stock options | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Effect of dilutive securities (in shares) | 3,040,827 | 0 | 2,869,271 | 0 |
Employee stock purchase program | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Earnings Per Common Share (Anti
Earnings Per Common Share (Anti-Dilutive Common Share Equivalents) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 3,020,562 | 11,813,427 | 5,169,484 | 11,813,427 |
Warrants to purchase | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 1,985,846 | 1,985,846 | 1,985,846 | 1,985,846 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 2,840,298 | 8,227,736 | 4,586,476 | 8,227,736 |
Common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 22,000 | |||
Common stock | Warrants to purchase | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 22,000 | 22,000 | 22,000 | 22,000 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 124,582 | 3,528,871 | 527,326 | 3,528,871 |
Employee stock purchase program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 33,682 | 34,820 | 33,682 | 34,820 |
Weighted Average | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Price of shares entitled to purchase (in dollars per share) | $ 14.50 | $ 14.50 |
Loans Held for Investment and_3
Loans Held for Investment and Allowance for Loan Losses (Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total unpaid principal balance | $ 1,095,792 | $ 936,239 |
Net deferred origination costs | 22,036 | 16,557 |
Total loans held for investment | 1,117,828 | 952,796 |
Term loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total unpaid principal balance | 928,091 | 804,227 |
Lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total unpaid principal balance | $ 167,702 | $ 132,012 |
Loans Held for Investment and_4
Loans Held for Investment and Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Originations of loans held for investment, modified | $ 801 | $ 13,730 | |||
Proceeds from sale of previously charged-off loans | $ 200 | $ 2,400 | 900 | 6,200 | |
Allowance for loan losses for non-delinquent loans | 87,100 | 87,100 | $ 74,000 | ||
Allowance for loan losses for delinquent loans | 46,500 | 46,500 | 35,000 | ||
Reserve for Off-balance Sheet Activities | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Related accrual for unfunded loan commitments | 5,200 | 5,200 | 4,400 | ||
Unused lines of Credit | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Off-balance sheet credit exposure | 243,200 | 243,200 | $ 204,600 | ||
Financial Institutions Borrower | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Originations of loans held for investment, modified | $ 112,100 | $ 101,600 | $ 360,600 | $ 367,300 |
Loans Held for Investment and_5
Loans Held for Investment and Allowance for Loan Losses (Allowance Roll Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 124,058 | $ 105,217 | $ 109,015 | $ 110,162 |
Recoveries of loans previously charged off | 3,306 | 5,330 | 9,857 | 12,173 |
Loans charged off | (32,822) | (45,257) | (93,916) | (135,958) |
Provision for loan losses | 39,102 | 39,582 | 108,688 | 118,495 |
Allowance for loan losses at end of period | $ 133,644 | $ 104,872 | $ 133,644 | $ 104,872 |
Loans Held for Investment and_6
Loans Held for Investment and Allowance for Loan Losses (Non-delinquent, Paying and Non-paying Delinquent Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Current loans | $ 1,002,932 | $ 850,060 |
Delinquent: paying (accrual status) | 52,275 | 49,252 |
Delinquent: non-paying (non-accrual status) | 40,585 | 36,927 |
Total unpaid principal balance | $ 1,095,792 | $ 936,239 |
Loans Held for Investment and_7
Loans Held for Investment and Allowance for Loan Losses (Aging Analysis of Term Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current loans | $ 1,002,932 | $ 850,060 |
Total unpaid principal balance | 1,095,792 | 936,239 |
1-14 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 22,573 | 23,611 |
15-29 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 10,261 | 12,528 |
30-59 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 18,671 | 22,059 |
60-89 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 15,161 | 12,809 |
90 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 26,194 | $ 15,172 |
Servicing Rights (Narrative) (D
Servicing Rights (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |||||
Serviced unpaid principal balance | $ 132,000,000 | $ 132,000,000 | $ 181,000,000 | ||
Unpaid principal balance for loans sold during period | 0 | $ 5,300,000 | 0 | $ 55,500,000 | |
Servicing revenue | $ 100,000 | $ 400,000 | $ 600,000 | $ 1,300,000 |
Servicing Rights (Fair Value of
Servicing Rights (Fair Value of Servicing Assets) (Details) - Term Loan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Fair value at the beginning of period | $ 29 | $ 701 | $ 154 | $ 1,131 |
Addition: | ||||
Servicing resulting from transfers of financial assets | 16 | 275 | 78 | 938 |
Changes in fair value: | ||||
Change in inputs or assumptions used in the valuation model | 0 | 0 | 0 | 0 |
Other changes in fair value | (36) | (347) | (223) | (1,440) |
Fair value at the end of period (Level 3) | $ 9 | $ 629 | $ 9 | $ 629 |
Debt (Summary of Outstanding De
Debt (Summary of Outstanding Debt) (Details) - USD ($) | Aug. 14, 2018 | Aug. 08, 2018 | Apr. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate at September 30, 2018 | 4.60% | |||||
ODAST II Series 2018-1 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate at September 30, 2018 | 3.80% | |||||
Debt | $ 225,000,000 | $ 0 | ||||
Debt instrument, face amount | $ 225,000,000 | |||||
ODAST II Series 2016-1 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 0 | 250,000,000 | ||||
Amount of debt repaid | $ 250,000,000 | |||||
ODART | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate at September 30, 2018 | 4.70% | |||||
Debt | $ 120,985,000 | 102,058,000 | ||||
RAOD | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate at September 30, 2018 | 5.30% | |||||
Debt | $ 111,542,000 | 86,478,000 | ||||
ODAC | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt | 0 | 62,350,000 | ||||
Amount of debt repaid | $ 100,000,000 | |||||
ODAF | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 0 | 75,000,000 | ||||
Amount of debt repaid | $ 150,000,000 | |||||
ODAF II | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate at September 30, 2018 | 4.40% | |||||
Debt | $ 111,119,000 | 0 | ||||
PORT II | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate at September 30, 2018 | 4.70% | |||||
Debt | $ 110,605,000 | 63,851,000 | ||||
LAOD | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate at September 30, 2018 | 4.10% | |||||
Debt | $ 95,096,000 | 0 | ||||
Other Agreements | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate at September 30, 2018 | 7.40% | |||||
Debt | $ 44,194,000 | 50,706,000 | ||||
Funding debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt | 818,541,000 | 690,443,000 | ||||
Deferred debt issuance cost | (6,113,000) | (6,174,000) | ||||
Total | 812,428,000 | 684,269,000 | ||||
Amount of debt repaid | 544,586,000 | $ 156,477,000 | ||||
Corporate debt | ||||||
Debt Instrument [Line Items] | ||||||
Total | 0 | 7,985,000 | ||||
Amount of debt repaid | $ 33,000,000 | $ 35,000,000 | ||||
Corporate debt | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Interest Rate at September 30, 2018 | 6.50% | |||||
Debt | $ 0 | 8,000,000 | ||||
Deferred debt issuance cost | $ 0 | $ (15,000) |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Aug. 14, 2018 | Aug. 08, 2018 | Oct. 04, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Loans held for investment that are pledged as collateral | $ 970,200,000 | $ 852,300,000 | |||
ODAF II | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit | $ 175,000,000 | ||||
ODAC | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Amount of debt repaid | $ 100,000,000 | ||||
ODAF | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Amount of debt repaid | $ 150,000,000 | ||||
LIBOR | ODAF II | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Subsequent Event | On Deck Capital, Inc. agreement, due January 2019 | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 30,000,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,095,854 | 932,343 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 9 | 154 |
Total assets | 9 | 154 |
Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 0 | 0 |
Total assets | 0 | 0 |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 0 | 0 |
Total assets | 0 | 0 |
Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 9 | 154 |
Total assets | $ 9 | $ 154 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Servicing Rights) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Cost of service | 0.04% | 0.04% |
Renewal rate | 41.06% | 41.06% |
Default rate | 10.63% | 10.63% |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Cost of service | 0.13% | 0.13% |
Renewal rate | 51.83% | 51.83% |
Default rate | 10.92% | 10.92% |
Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Cost of service | 0.13% | 0.12% |
Renewal rate | 50.56% | 49.59% |
Default rate | 10.68% | 10.70% |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Servicing Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Default rate assumption, default rate increase of 25% | 25.00% | |
Default rate assumption, default rate increase of 50% | 50.00% | |
Cost to service assumption, cost to service increase by 25% | 25.00% | |
Cost to service assumption, cost to service increase by 50% | 50.00% | |
Default rate increase of 25% | $ (3) | $ (40) |
Default rate increase of 50% | (5) | (76) |
Cost to service increase by 25% | (4) | (63) |
Cost to service increase by 50% | $ (9) | $ (126) |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, net | $ 0 | $ 0 |
Total assets | 0 | 0 |
Fixed-rate debt | 0 | 0 |
Total fixed-rate debt | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, net | 0 | 0 |
Total assets | 0 | 0 |
Fixed-rate debt | 0 | 0 |
Total fixed-rate debt | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, net | 1,095,854 | 932,343 |
Total assets | 1,095,854 | 932,343 |
Fixed-rate debt | 223,022 | 293,512 |
Total fixed-rate debt | 223,022 | 293,512 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, net | 984,184 | 843,781 |
Total assets | 984,184 | 843,781 |
Fixed-rate debt | 232,982 | 300,706 |
Total fixed-rate debt | 232,982 | 300,706 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, net | 1,095,854 | 932,343 |
Total assets | 1,095,854 | 932,343 |
Fixed-rate debt | 223,022 | 293,512 |
Total fixed-rate debt | $ 223,022 | $ 293,512 |
Noncontrolling Interest (Schedu
Noncontrolling Interest (Schedule of Changes in Equity, Including Equity Attributable to Noncontrolling Interests (Details) - USD ($) $ in Thousands | Jun. 29, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 266,056 | $ 263,597 | |||
Net income (loss) | $ 9,497 | $ (4,532) | 11,835 | (18,703) | |
Stock based compensation | 8,573 | 9,115 | |||
Exercise of options and warrants | 76 | 490 | |||
Employee stock purchase plan | 1,895 | 2,299 | |||
Foreign currency translation adjustment | (306) | 246 | (815) | 682 | |
Purchase of treasury shares | (801) | (864) | |||
Investments by noncontrolling interests | 3,403 | 3,443 | |||
Return of equity to noncontrolling interests | $ (1,000) | (959) | |||
Ending balance | 290,222 | 259,100 | 290,222 | 259,100 | |
Comprehensive loss: | |||||
Net income (loss) | 9,497 | (4,532) | 11,835 | (18,703) | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | (306) | 246 | (815) | 682 | |
Comprehensive income (loss) | 9,191 | (4,286) | 11,020 | (18,021) | |
On Deck Capital, Inc's stockholders' equity | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 262,045 | 259,525 | |||
Net income (loss) | 13,642 | (16,630) | |||
Stock based compensation | 8,573 | 9,115 | |||
Exercise of options and warrants | 76 | 490 | |||
Employee stock purchase plan | 1,895 | 2,299 | |||
Foreign currency translation adjustment | (448) | 375 | |||
Purchase of treasury shares | (801) | (864) | |||
Investments by noncontrolling interests | 0 | 0 | |||
Return of equity to noncontrolling interests | 0 | ||||
Ending balance | 284,982 | 254,310 | 284,982 | 254,310 | |
Comprehensive loss: | |||||
Net income (loss) | 13,642 | (16,630) | |||
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | (448) | 375 | |||
Comprehensive income (loss) | 13,194 | (16,255) | |||
Noncontrolling interest | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 4,011 | 4,072 | |||
Net income (loss) | (1,807) | (2,073) | |||
Stock based compensation | 0 | 0 | |||
Exercise of options and warrants | 0 | 0 | |||
Employee stock purchase plan | 0 | 0 | |||
Foreign currency translation adjustment | (367) | 307 | |||
Purchase of treasury shares | 0 | 0 | |||
Investments by noncontrolling interests | 3,403 | 3,443 | |||
Return of equity to noncontrolling interests | (959) | ||||
Ending balance | $ 5,240 | $ 4,790 | 5,240 | 4,790 | |
Comprehensive loss: | |||||
Net income (loss) | (1,807) | (2,073) | |||
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | (367) | 307 | |||
Comprehensive income (loss) | $ (2,174) | $ (1,766) |
Noncontrolling Interest (Narrat
Noncontrolling Interest (Narrative) (Details) - USD ($) $ in Thousands | Jun. 29, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2015 |
Noncontrolling Interest [Line Items] | ||||
Ownership percentage by noncontrolling owners | 33.00% | |||
Proceeds from noncontrolling interests | $ 2,000 | $ 3,403 | $ 3,443 | |
Return of equity to noncontrolling interests | $ 1,000 | $ 959 | ||
67% in an entity | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percentage by parent | 67.00% |
Stock-Based Compensation and _3
Stock-Based Compensation and Employee Benefit Plans (Summary of Option Activity) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Number of Options | |
Beginning balance (in shares) | shares | 7,918,853 |
Granted (in shares) | shares | 1,031,550 |
Exercised (in shares) | shares | (531,747) |
Forfeited (in shares) | shares | (212,410) |
Expired (in shares) | shares | (185,067) |
Ending balance (in shares) | shares | 8,021,179 |
Exercisable, number of options (in shares) | shares | 6,329,697 |
Vested and expected to vest, number of options (in shares) | shares | 7,917,209 |
Weighted- Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 5.75 |
Granted (in dollars per share) | $ / shares | 5.41 |
Exercised (in dollars per share) | $ / shares | 0.98 |
Forfeited (in dollars per share) | $ / shares | 8.17 |
Expired (in dollars per share) | $ / shares | 10.91 |
Ending balance (in dollars per share) | $ / shares | 5.84 |
Exercisable, weighted-average exercise price (in dollars per share) | $ / shares | 5.76 |
Vested and expected to vest, weighted-average exercise price (in dollars per share) | $ / shares | $ 5.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Outstanding, weighted-average remaining contractual term | 5 years 10 months 23 days |
Outstanding, aggregate intrinsic value | $ | $ 24,922 |
Exercisable, weighted-average remaining contractual term | 5 years 2 months 12 days |
Exercisable, aggregate intrinsic value | $ | $ 21,739 |
Vested and expected to vest, weighted-average remaining contractual term | 5 years 10 months 24 days |
Vested and expected to vest, aggregate intrinsic value | $ | $ 24,694 |
Stock-Based Compensation and _4
Stock-Based Compensation and Employee Benefit Plans (Options) (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Compensation cost for nonvested option awards not yet recognized | $ 3.4 | |
Weighted-average recognition period | 2 years | |
Aggregate intrinsic value | $ 2.9 | $ 5 |
Stock-Based Compensation and _5
Stock-Based Compensation and Employee Benefit Plans (Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of RSUs | |
Unvested beginning balance (in shares) | shares | 3,342,640 |
RSUs and PRSUs granted (in shares) | shares | 1,304,194 |
RSUs vested (in shares) | shares | (514,972) |
RSUs forfeited/expired (in shares) | shares | (404,092) |
Unvested ending balance (in shares) | shares | 3,727,770 |
Expected to vest after June 30, 2018 (in shares) | shares | 3,066,327 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 6.18 |
RSUs and PRSUs granted (in dollars per share) | $ / shares | 5.71 |
RSUs vested (in dollars per share) | $ / shares | 7.60 |
RSUs forfeited/expired (in dollars per share) | $ / shares | 6.30 |
Unvested, ending balance (in dollars per share) | $ / shares | 5.80 |
Expected to vest after June 30, 2018 (in dollars per share) | $ / shares | $ 5.86 |
Stock-Based Compensation and _6
Stock-Based Compensation and Employee Benefit Plans (Restricted Stock Units) (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Recognition period | 2 years |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 13 |
Recognition period | 2 years 6 months 25 days |
Stock-Based Compensation and _7
Stock-Based Compensation and Employee Benefit Plans (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 2,848 | $ 3,056 | $ 8,852 | $ 9,521 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 452 | 538 | 1,492 | 1,830 |
Technology and analytics | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 621 | 499 | 1,874 | 1,824 |
Processing and servicing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 77 | 99 | 278 | 429 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,698 | $ 1,920 | $ 5,208 | $ 5,438 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Mar. 29, 2018 | Feb. 01, 2018 | Mar. 31, 2018USD ($) | Sep. 30, 2018USD ($)lease | Sep. 30, 2017USD ($) |
Operating Leased Assets [Line Items] | |||||
Lease termination charge | $ (1,481) | $ 0 | |||
Impairment of leasehold | $ 5,700 | ||||
Number of leases terminated | lease | 2 | ||||
Reduction in future required rental payments due to lease termination | $ 23,000 | ||||
New York Lease | |||||
Operating Leased Assets [Line Items] | |||||
Lease termination, percentage of office space | 32.00% | ||||
Lease termination surrender fee | $ 2,600 | ||||
Lease termination charge | 3,200 | ||||
Impairment of leasehold | 4,000 | ||||
Denver Lease | |||||
Operating Leased Assets [Line Items] | |||||
Lease termination, percentage of office space | 38.00% | ||||
Lease termination surrender fee | 900 | ||||
Lease termination charge | $ 1,000 |