Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ck0001409970 | |
Entity Registrant Name | LENDINGCLUB CORP | |
Entity Central Index Key | 1,409,970 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 375,196,702 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 490,466 | $ 869,780 |
Restricted cash | 56,738 | 46,763 |
Securities available for sale: | 397,771 | 0 |
Loans at fair value (includes $2,343,799 and $1,772,407 from consolidated trust, respectively) | 3,637,383 | 2,798,505 |
Accrued interest receivable (includes $20,174 and $15,209 from consolidated trust, respectively) | 32,631 | 24,262 |
Property, equipment and software, net | 39,087 | 27,051 |
Intangible assets, net | 33,483 | 36,302 |
Goodwill | 72,683 | 72,592 |
Due from related parties | 578 | 467 |
Other assets | 21,994 | 14,332 |
Total assets | 4,782,814 | 3,890,054 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 5,142 | 5,892 |
Accrued interest payable (includes $22,820 and $16,989 from consolidated trust, respectively) | 35,398 | 26,964 |
Accrued expenses and other liabilities | 37,824 | 31,620 |
Payable to investors | 48,475 | 38,741 |
Notes and certificates at fair value (includes $2,358,679 and $1,772,407 from consolidated trust, respectively) | 3,660,124 | 2,813,618 |
Total liabilities | 3,786,963 | 2,916,835 |
Stockholders’ Equity | ||
Common stock, $0.01 par value; 900,000,000 shares authorized at June 30, 2015 and December 31, 2014, respectively; 374,524,782 and 371,443,916 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | 3,745 | 3,714 |
Additional paid-in capital | 1,086,674 | 1,052,728 |
Accumulated deficit | (93,737) | (83,223) |
Accumulated other comprehensive loss | (831) | 0 |
Total stockholders’ equity | 995,851 | 973,219 |
Total liabilities and stockholders’ equity | $ 4,782,814 | $ 3,890,054 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Member Loans at fair value | $ 3,637,383 | $ 2,798,505 |
Accrued interest receivable from consolidated Trust | 32,631 | 24,262 |
Accrued interest payable from consolidated Trust | 35,398 | 26,964 |
Notes and certificates, at fair value from consolidated Trust | $ 3,660,124 | $ 2,813,618 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 374,524,782 | 371,443,916 |
Common stock, shares outstanding | 374,524,782 | 371,443,916 |
Consolidated Trust | ||
Member Loans at fair value | $ 2,343,799 | $ 1,772,407 |
Accrued interest receivable from consolidated Trust | 20,174 | 15,209 |
Accrued interest payable from consolidated Trust | 22,820 | 16,989 |
Notes and certificates, at fair value from consolidated Trust | $ 2,358,679 | $ 1,772,407 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenue: | ||||
Transaction fees | $ 85,651 | $ 45,801 | $ 158,133 | $ 81,213 |
Servicing fees | 6,479 | 1,468 | 11,871 | 3,248 |
Management fees | 2,548 | 1,461 | 4,763 | 2,555 |
Other revenue (expense) | 1,441 | (109) | 2,397 | 307 |
Total operating revenue | 96,119 | 48,621 | 177,164 | 87,323 |
Net interest income: | ||||
Total interest income | 130,526 | 85,212 | 243,998 | 158,260 |
Total interest expense | (129,727) | (85,594) | (243,007) | (158,594) |
Net interest income (expense) | 799 | (382) | 991 | (334) |
Fair value adjustments, loans | (52,201) | (26,405) | (100,021) | (51,154) |
Fair value adjustments, notes and certificates | 52,200 | 26,391 | 100,015 | 51,108 |
Net interest income (expense) after fair value adjustments | 798 | (396) | 985 | (380) |
Total net revenue | 96,917 | 48,225 | 178,149 | 86,943 |
Operating expenses: | ||||
Sales and marketing | 40,317 | 19,225 | 75,201 | 39,807 |
Origination and servicing | 15,287 | 8,566 | 27,967 | 15,968 |
General and administrative | 45,064 | 28,981 | 84,479 | 47,014 |
Total operating expenses | 100,668 | 56,772 | 187,647 | 102,789 |
Loss before income tax expense | (3,751) | (8,547) | (9,498) | (15,846) |
Income tax expense | 389 | 640 | 1,016 | 640 |
Net loss | $ (4,140) | $ (9,187) | $ (10,514) | $ (16,486) |
Basic net income (loss) per share attributable to common stockholders ($ per share) | $ (0.01) | $ (0.16) | $ (0.03) | $ (0.29) |
Diluted net income (loss) per share attributable to common stockholders ($ per share) | $ (0.01) | $ (0.16) | $ (0.03) | $ (0.29) |
Weighted-average shares of common stock used in computing basic net income (loss) per share (shares) | 372,841,945 | 57,971,180 | 372,401,583 | 56,903,128 |
Weighted-average shares of common stock used in computing diluted net income (loss) per share (shares) | 372,841,945 | 57,971,180 | 372,401,583 | 56,903,128 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (4,140) | $ (9,187) | $ (10,514) | $ (16,486) |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Change in net unrealized loss on securities available for sale | (831) | 0 | (831) | 0 |
Other comprehensive loss, before tax | (831) | 0 | (831) | 0 |
Income tax effect | 0 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | (831) | 0 | (831) | 0 |
Comprehensive loss | $ (4,971) | $ (9,187) | $ (11,345) | $ (16,486) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (10,514) | $ (16,486) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Net fair value adjustments of loans, notes and certificates | 6 | 46 |
Change in fair value of loan servicing liabilities | (2,080) | 1,800 |
Change in fair value of loan servicing assets | 1,031 | (500) |
Stock-based compensation, net | 24,079 | 15,352 |
Depreciation and amortization | 9,753 | 3,463 |
Loss (gain) on sales of loans | (446) | 781 |
Other, net | 85 | 123 |
Purchase of whole loans to be sold | (1,383,130) | (632,740) |
Proceeds from sales of whole loans | 1,383,130 | 631,959 |
Net change in operating assets and liabilities: | ||
Accrued interest receivable | (8,369) | (5,269) |
Other assets | (5,310) | 14,057 |
Due from related parties | (110) | (56) |
Accounts payable | (669) | 68 |
Accrued interest payable | 8,434 | 5,491 |
Accrued expenses and other liabilities | 5,883 | 4,048 |
Net cash provided by operating activities | 21,773 | 22,137 |
Cash Flows from Investing Activities: | ||
Purchases of loans | (1,745,013) | (1,002,301) |
Principal payments received from loans | 798,304 | 451,403 |
Proceeds from recoveries and sales of charged-off loans | 7,810 | 2,584 |
Purchases of securities available for sale | (402,112) | 0 |
Proceeds from sales of securities available for sale | 3,509 | 0 |
Payments for business acquisition, net of cash acquired | 0 | (109,464) |
Net change in restricted cash | (9,975) | (6,659) |
Proceeds from sale of property and equipment | 11 | 0 |
Purchases of property, equipment and software | (15,960) | (9,380) |
Net cash used for investing activities | (1,363,426) | (673,817) |
Cash Flows from Financing Activities: | ||
Change in payable to investors | 9,734 | 8,227 |
Proceeds from issuances of notes and certificates | 1,744,741 | 1,001,976 |
Principal payments on notes and certificates | (790,432) | (451,699) |
Payments on notes and certificates from recoveries/sales of related charged-off loans | (7,788) | (2,564) |
Proceeds from term loan, net of debt discount | 0 | 49,813 |
Payment for debt issuance cost | 0 | (1,192) |
Principal payment on term loan | 0 | (313) |
Change in equity offering costs | 90 | 0 |
Proceeds from issuance of common stock for ESPP | 2,694 | 0 |
Proceeds from stock option exercises | 3,297 | 2,198 |
Proceeds from exercise of warrants to acquire common stock | 3 | 90 |
Net cash provided by financing activities | 962,339 | 671,339 |
Net (Decrease) Increase in Cash and Cash Equivalents | (379,314) | 19,659 |
Cash and Cash Equivalents, Beginning of Period | 869,780 | 49,299 |
Cash and Cash Equivalents, End of Period | 490,466 | 68,958 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 234,573 | 152,679 |
Issuance of Series F convertible preferred stock for business acquisition | 0 | 2,762 |
Accruals for property, equipment and software | 2,100 | 1,094 |
Series F Preferred Stock | ||
Cash Flows from Financing Activities: | ||
Proceeds from issuance of Series F convertible preferred stock, net of issuance costs | $ 0 | $ 64,803 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation LendingClub Corporation (Lending Club) is an online marketplace for connecting borrowers and investors. LC Advisors, LLC (LCA), is a registered investment advisor with the Securities and Exchange Commission (SEC) and wholly-owned subsidiary of Lending Club that acts as the general partner for certain private funds and advisor to separately managed accounts. LC Trust I (the Trust) is an independent Delaware business trust that acquires and holds loans for the sole benefit of certain investors that purchase trust certificates (Certificates) issued by the Trust and that are related to underlying loans. Springstone Financial, LLC (Springstone), is a wholly-owned subsidiary of Lending Club that facilitates education and patient finance loans. The accompanying unaudited condensed consolidated financial statements include Lending Club, the Trust and its wholly-owned subsidiaries (collectively referred to as the Company, we, or us). All intercompany balances and transactions have been eliminated. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for the fair statement of the results and financial position for the periods presented. The Company's results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year or any other interim period. The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (Annual Report). The Company's significant accounting policies are included in " Part II - Item 8 - Financial Statements and Supplementary Data - Note 2 – Summary of Significant Accounting Policies " in the Annual Report. There have been no significant changes to these accounting policies during the first half of 2015, except as noted in " Note 4 – Securities Available for Sale " and " Note 6 – Fair Value of Assets and Liabilities " of these condensed consolidated financial statements. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards New Accounting Standards Not Yet Adopted In February 2015, the Financial Accounting Standards Board (FASB) issued new guidance amending accounting for consolidations, which will be effective January 1, 2016. The guidance changes what an investor must consider in determining whether it is required to consolidate an entity in which it holds an interest. The Company is currently evaluating the impact of this guidance on the Company’s financial position, results of operations, earnings per common share, and cash flows. In April 2015, the FASB issued new guidance amending accounting for customer's cloud based fees, which will be effective January 1, 2016. The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The Company is currently evaluating the impact of this guidance on the Company’s financial position, results of operations, earnings per common share, and cash flows. |
Net Loss Per Share and Net Loss
Net Loss Per Share and Net Loss Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share and Net Loss Attributable to Common Stockholders | Net Loss Per Share and Net Loss Attributable to Common Stockholders Earnings (loss) per share (EPS) is the amount of net income (loss) available to each share of common stock outstanding during the reporting period. Diluted EPS is the amount of net income (loss) available to each share of common stock outstanding during the reporting period, adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares are excluded from the computation of diluted EPS in periods in which the effect would be antidilutive. Potentially dilutive common shares include incremental shares issued for stock options, convertible preferred stock and warrants to purchase common stock. In conjunction with the Company's Initial Public Offering (IPO) on December 11, 2014, all of its convertible preferred stock converted to common stock and all warrants to purchase convertible preferred stock were converted to warrants to purchase common stock. The Company calculates EPS using the two-class method when applicable. The two-class method allocates net income that otherwise would have been available to common shareholders to holders of participating securities. All participating securities are excluded from basic weighted-average common shares outstanding. Prior to the Company's IPO, it considered all series of its convertible preferred stock to be participating securities. The Company had no participating securities as of June 30, 2015 . The following table details the computation of the basic and diluted net loss per share: Three Months Ended Six Months Ended 2015 2014 2015 2014 Net loss $ (4,140 ) $ (9,187 ) $ (10,514 ) $ (16,486 ) Net loss available to common stockholders (1) $ (4,140 ) $ (9,187 ) $ (10,514 ) $ (16,486 ) Weighted average common shares - Basic 372,841,945 57,971,180 372,401,583 56,903,128 Weighted average common shares - Diluted 372,841,945 57,971,180 372,401,583 56,903,128 Basic net loss per share attributable to common stockholders $ (0.01 ) $ (0.16 ) $ (0.03 ) $ (0.29 ) Diluted net loss per share attributable to common stockholders $ (0.01 ) $ (0.16 ) $ (0.03 ) $ (0.29 ) (1) In a period with net income, both earnings and dividends (if any) are allocated to participating securities. In a period with a net loss, only declared dividends (if any) are allocated to participating securities. There were no dividends declared in the first halves of 2015 or 2014 . |
Securities Available for Sale
Securities Available for Sale | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale The Company purchased securities available for sale during the second quarter of 2015. Securities available for sale are recorded at fair value and unrealized gains and losses are reported, net of taxes, in accumulated other comprehensive income (loss) included in stockholders' equity unless management determines that a security is other-than-temporarily impaired (OTTI). Realized gains and losses from sales of securities available for sale are determined on a specific identification basis and are included in other revenue (expense). The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of June 30, 2015 , are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate debt securities $ 257,626 $ 3 $ (824 ) $ 256,805 Asset-backed securities 61,858 4 (47 ) 61,815 U.S. Treasury securities 31,563 37 — 31,600 U.S. agency securities 30,600 7 (8 ) 30,599 Municipal securities 9,948 3 (2 ) 9,949 Other securities 7,007 — (4 ) 7,003 Total securities available for sale $ 398,602 $ 54 $ (885 ) $ 397,771 A summary of securities available for sale with unrealized losses as of June 30, 2015 , aggregated by category and period of continuous unrealized loss, is as follows: Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 245,211 $ (824 ) $ — $ — $ 245,211 $ (824 ) Asset-backed securities 42,412 (47 ) — — 42,412 (47 ) U.S. agency securities 11,986 (8 ) — — 11,986 (8 ) Municipal securities 2,999 (2 ) — — 2,999 (2 ) Other securities 7,002 (4 ) — — 7,002 (4 ) Total securities with unrealized losses (1) $ 309,610 $ (885 ) $ — $ — $ 309,610 $ (885 ) (1) The number of investment positions with unrealized losses totaled 144 . Management evaluates whether securities available for sale are OTTI on a quarterly basis. Debt securities with unrealized losses are considered OTTI if the Company intends to sell the security or if it is more likely than not that we will be required to sell such security before any anticipated recovery. If management determines that a security is OTTI under these circumstances, the impairment recognized in earnings is measured as the entire difference between the amortized cost and then-current fair value. A security is also OTTI if management does not expect to recover all of the amortized cost of the security. In this circumstance, the impairment recognized in earnings represented estimated credit loss, and is measured by the difference between the present value of expected cash flows and the amortized cost of the security. Management utilizes cash flow models to estimate the expected future cash flow from the securities to estimate the credit loss. Expected cash flows are discounted using the security's effective interest rate. The evaluation of whether the Company expects to recover the amortized cost of a security is inherently judgmental. The evaluation includes the assessment of several bond performance indicators, including the current price and magnitude of the unrealized loss and whether the Company has received all scheduled principal and interest payments. There were no impairment charges recognized during the first half of 2015. The maturities of securities available for sale at June 30, 2015 , are as follows: Within 1 year After 1 year through 5 years After 5 years through 10 years After 10 years Total Corporate debt securities $ 20,105 $ 236,700 $ — $ — $ 256,805 Asset-backed securities — 58,427 3,388 — 61,815 U.S. Treasury securities 4,007 27,593 — — 31,600 U.S. agency securities 3,999 26,600 — — 30,599 Municipal securities 3,108 6,841 — — 9,949 Other securities — 7,003 — — 7,003 Total fair value $ 31,219 $ 363,164 $ 3,388 $ — $ 397,771 Total amortized cost $ 31,234 $ 363,968 $ 3,400 $ — $ 398,602 Proceeds and gross realized losses from sales of securities available for sale are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Proceeds $ 3,509 $ — $ 3,509 $ — Gross realized losses $ 1 $ — $ 1 $ — There were no gross realized gains during the first halves of 2015 and 2014. |
Loans, Notes and Certificates,
Loans, Notes and Certificates, and Loan Servicing Rights | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Loans, Notes and Certificates, and Loan Servicing Rights | Loans, Notes and Certificates, and Loan Servicing Rights Loans, Notes and Certificates At June 30, 2015 and December 31, 2014 , loans, notes and certificates measured at fair value on a recurring basis were as follows: Loans Notes and Certificates June 30, December 31, June 30, December 31, Aggregate principal balance outstanding $ 3,694,823 $ 2,836,729 $ 3,717,556 $ 2,851,837 Net fair value adjustments (57,440 ) (38,224 ) (57,432 ) (38,219 ) Fair value $ 3,637,383 $ 2,798,505 $ 3,660,124 $ 2,813,618 Original term 12 - 60 months 12 - 60 months Interest rates (fixed) 4.99% - 29.90% 5.79% - 29.90% Maturity dates ≤ June 2020 ≤ December 2019 We place loans on non-accrual status once they are 120 days past due, including loans to borrowers who have filed for bankruptcy. At June 30, 2015 and December 31, 2014 , loans for which the borrower has filed for bankruptcy or is deceased, or that were 90 days or more past due (including non-accrual loans), were as follows: June 30, 2015 December 31, 2014 > 90 days past due (1) Non-accrual loans > 90 days past due (1) Non-accrual loans Outstanding principal balance $ 23,064 $ 919 $ 19,790 $ 1,373 Net fair value adjustments (21,635 ) (842 ) (18,825 ) (1,289 ) Fair value $ 1,429 $ 77 $ 965 $ 84 # of loans (not in thousands) 2,023 76 1,797 125 (1) Includes all loans for which the Company has been notified that the borrower has filed for bankruptcy or is deceased, or that were 90 days or more past due (including non-accrual loans). Loan Servicing Rights Servicing assets and liabilities related to retained servicing rights are recorded at fair value in “Other assets” and “Accrued expenses and other liabilities,” respectively. At June 30, 2015 , loans underlying loan servicing rights had a total outstanding principal balance of $2.847 billion , original terms between 12 and 84 months , monthly payments with fixed interest rates ranging from 2.99% to 33.15% and maturity dates through June 2022 . At December 31, 2014 , loans underlying loan servicing rights had a total outstanding principal balance of $1.872 billion , original terms between 12 and 60 months , monthly payments with fixed interest rates ranging from 5.90% to 33.15% and maturity dates through December 2019 . |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities For a description of the fair value hierarchy and the Company’s fair value methodologies, see " Part II - Item 8 - Financial Statements and Supplementary Data - Note 2 - Summary of Significant Accounting Policies " in the Annual Report. The Company did not transfer any assets or liabilities in or out of level 3 during the second quarter and first half of 2015 or the year ended December 31, 2014 . Financial Instruments Recorded at Fair Value See " Part II - Item 8 - Financial Statements and Supplementary Data - Note 2 - Summary of Significant Accounting Policies " in the Company's Annual Report for a description of the fair value methodology for loans, notes and certificates. When available, the Company uses quoted prices in active markets to measure the fair value of securities available for sale. When utilizing market data and bid-ask spreads, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. The Company generally obtains prices from at least three independent pricing sources for assets recorded at fair value. The Company's primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information, such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar "to-be-issued" securities. The Company compares the prices obtained from its primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. The Company does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. The following tables present the fair value hierarchy for assets and liabilities measured at fair value: June 30, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Loans $ — $ — $ 3,637,383 $ 3,637,383 Securities available for sale: Corporate debt securities — 256,805 — 256,805 Asset-backed securities — 61,815 — 61,815 U.S. Treasury securities — 31,600 — 31,600 U.S. agency securities — 30,599 — 30,599 Municipal securities — 9,949 — 9,949 Other securities — 7,003 — 7,003 Total securities available for sale — 397,771 — 397,771 Servicing assets — — 5,225 5,225 Total assets $ — $ 397,771 $ 3,642,608 $ 4,040,379 Liabilities: Notes and certificates $ — $ — $ 3,660,124 $ 3,660,124 Servicing liabilities — — 4,831 4,831 Total liabilities $ — $ — $ 3,664,955 $ 3,664,955 December 31, 2014 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Loans $ — $ — $ 2,798,505 $ 2,798,505 Servicing assets — — 2,181 2,181 Total assets $ — $ — $ 2,800,686 $ 2,800,686 Liabilities: Notes and certificates $ — $ — $ 2,813,618 $ 2,813,618 Servicing liabilities — — 3,973 3,973 Total liabilities $ — $ — $ 2,817,591 $ 2,817,591 As our loans and related notes and certificates, and loan servicing rights do not trade in an active market with readily observable prices, we use significant unobservable inputs to measure the fair value of these assets and liabilities. Financial instruments are categorized in the level 3 valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, the realized and unrealized gains and losses for assets and liabilities within the level 3 category may include changes in fair value that were attributable to both observable and unobservable inputs. Significant Unobservable Inputs The following tables present quantitative information about the significant unobservable inputs used for our level 3 fair value measurements at June 30, 2015 and December 31, 2014 : June 30, 2015 Range of Inputs Financial Instrument Unobservable Input Minimum Maximum Weighted- Average Loans, notes and certificates Discount rates 3.5 % 17.4 % 10.0 % Net cumulative expected loss rates 0.3 % 22.2 % 10.4 % Servicing asset/liability Discount rates 3.4 % 23.2 % 10.1 % Net cumulative expected loss rates 0.3 % 22.2 % 9.6 % Cumulative prepayment rates 8.0 % 36.0 % 22.3 % Base market servicing rates (% per annum on unpaid principal balance) (1) 0.5 % 0.7 % 0.5 % December 31, 2014 Range of Inputs Financial Instrument Unobservable Input Minimum Maximum Weighted- Average Loans, notes and certificates Discount rates 5.2 % 17.4 % 10.1 % Net cumulative expected loss rates 0.3 % 22.0 % 10.0 % Servicing asset/liability Discount rates 5.3 % 23.7 % 10.7 % Net cumulative expected loss rates 0.3 % 22.0 % 10.2 % Cumulative prepayment rates 16.5 % 26.7 % 20.0 % Base market servicing rates (% per annum on unpaid principal balance) (1) 0.5 % 0.7 % 0.5 % (1) Excludes ancillary fees charged to investors that would be passed on to a third-party servicer. At June 30, 2015 , the discounted cash flow methodology used to estimate the note and certificates fair values used the same projected cash flows as the related loans. As demonstrated in the following table, the fair value adjustments for loans were largely offset by the fair value adjustments of the notes and certificates due to the member payment dependent design of the notes and certificates and because the principal balances of the loans were very close to the combined principal balances of the notes and certificates. The following tables present additional information about level 3 loans, notes and certificates measured at fair value on a recurring basis for the first halves of 2015 and 2014 : Loans Notes and Certificates Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Beginning balance at December 31, 2014 $ 2,836,729 $ (38,224 ) $ 2,798,505 $ 2,851,837 $ (38,219 ) $ 2,813,618 Purchases of loans 3,128,589 — 3,128,589 — — — Issuances of notes and certificates — — — 1,744,741 — 1,744,741 Whole loan sales (1,383,576 ) — (1,383,576 ) — — — Principal payments (798,304 ) — (798,304 ) (790,432 ) — (790,432 ) Recoveries — (7,810 ) (7,810 ) — (7,788 ) (7,788 ) Charge-offs (88,615 ) 88,615 — (88,590 ) 88,590 — Change in fair value recorded in earnings — (100,021 ) (100,021 ) — (100,015 ) (100,015 ) Ending balance at June 30, 2015 $ 3,694,823 $ (57,440 ) $ 3,637,383 $ 3,717,556 $ (57,432 ) $ 3,660,124 Loans Notes and Certificates Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Beginning balance at December 31, 2013 $ 1,849,042 $ (20,000 ) $ 1,829,042 $ 1,859,982 $ (19,992 ) $ 1,839,990 Purchases of loans 1,634,260 — 1,634,260 — — — Issuances of notes and certificates — — — 1,001,976 — 1,001,976 Whole loan sales (631,959 ) — (631,959 ) — — — Principal payments (451,403 ) — (451,403 ) (451,699 ) — (451,699 ) Recoveries — (2,584 ) (2,584 ) — (2,565 ) (2,565 ) Charge-offs (48,425 ) 48,425 — (48,357 ) 48,357 — Change in fair value recorded in earnings — (51,154 ) (51,154 ) — (51,107 ) (51,107 ) Ending balance at June 30, 2014 $ 2,351,515 $ (25,313 ) $ 2,326,202 $ 2,361,902 $ (25,307 ) $ 2,336,595 The following table presents additional information about level 3 servicing assets and liabilities measured at fair value on a recurring basis for the first halves of 2015 and 2014 : Six Months Ended Six Months Ended Servicing Assets Servicing Liabilities Servicing Assets Servicing Liabilities Fair value at beginning of period $ 2,181 $ 3,973 $ 534 $ 936 Issuances (1) 3,384 2,938 874 1,655 Changes in fair value, included in servicing fees (1,031 ) (2,080 ) (659 ) 145 Additions, included in deferred revenue 691 — 285 — Fair value at end of period $ 5,225 $ 4,831 $ 1,034 $ 2,736 (1) Represents the offset to the gain or loss on sale of the related loan, recorded in other revenue. Significant Recurring Level 3 Fair Value Asset and Liability Input Sensitivity The majority of fair value adjustments included in the Company's net loss are attributable to changes in estimated instrument-specific future credit losses. Certain fair valuation adjustments recorded through earnings were related to level 3 instruments for the second quarters and first halves of 2015 and 2014 . A specific loan that is projected to have larger future default losses than previously estimated has lower expected future cash flows over its remaining life, which reduces its estimated fair value. Conversely, a specific loan that is projected to have smaller future default losses than previously estimated has increased expected future cash flows over its remaining life, which increases its fair value. Changes in the unobservable inputs discussed above may have a significant impact on the fair value of loans, notes and certificates, or servicing assets and liabilities. Certain of these unobservable inputs will (in isolation) have a directionally consistent impact on the fair value of the financial instrument for a given change in that input. Alternatively, the fair value of the financial instrument may move in an opposite direction for a given change in another input. When multiple inputs are used within the valuation techniques for loans, notes and certificates, or servicing assets and liabilities, a change in one input in a certain direction may be offset by an opposite change from another input. Generally, changes in the net cumulative expected loss rates and discount rates will have an immaterial net impact on the fair value of loans, notes and certificates, and servicing assets and liabilities. Additionally, changes in prepayment rates will have an immaterial net impact on the fair value of loans and notes and certificates. Our selection of the most representative prepayment rates and base market servicing rates for our loans, servicing assets and servicing liabilities is inherently judgmental. We reviewed third-party servicing rates for loans in similar credit sectors, as well as a market servicing benchmarking analysis provided by a third-party valuation firm, and determined that base market servicing rates on our products ranging from 0.40% to 0.70% per anum of outstanding principal are reasonable estimates as of June 30, 2015 . Expected prepayments are based on analyses of actual prepayment experience of loans considering their various types, terms, and credit grades. The table below shows the estimated impact on the estimated fair value of servicing assets and liabilities, calculated using different base market servicing rate and prepayment rate assumptions as of June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 Servicing Assets Servicing Liabilities Servicing Assets Servicing Liabilities Weighted-average base market servicing rate assumptions 0.50 % 0.50 % 0.50 % 0.50 % Change in fair value from: Servicing rate increase to 0.60% $ (1,807 ) $ 1,684 $ (915 ) $ 1,416 Servicing rate decrease to 0.40% $ 1,889 $ (1,602 ) $ 965 $ (1,366 ) Weighted-average cumulative prepayment rate assumptions 22.3 % 22.3 % 20.0 % 20.0 % Change in fair value from: 25% increase in cumulative prepayments $ (168 ) $ (294 ) $ (65 ) $ (228 ) 25% decrease in cumulative prepayments $ 195 $ 320 $ 67 $ 231 Financial Instruments Not Recorded at Fair Value The following tables present the fair value hierarchy for financial instruments not recorded at fair value: June 30, 2015 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Cash and cash equivalents $ 490,466 $ — $ 490,466 $ — $ 490,466 Restricted cash 56,738 — 56,738 — 56,738 Deposits 665 — 665 — 665 Total assets $ 547,869 $ — $ 547,869 $ — $ 547,869 Liabilities: Accounts payable $ 5,142 $ — $ 5,142 $ — $ 5,142 Payables to investors 48,475 — 48,475 — 48,475 Total liabilities $ 53,617 $ — $ 53,617 $ — $ 53,617 December 31, 2014 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Cash and cash equivalents $ 869,780 $ — $ 869,780 $ — $ 869,780 Restricted cash 46,763 — 46,763 — 46,763 Deposits 657 — 657 — 657 Total assets $ 917,200 $ — $ 917,200 $ — $ 917,200 Liabilities: Accounts payable $ 5,891 $ — $ 5,891 $ — $ 5,891 Payables to investors 38,741 — 38,741 — 38,741 Total liabilities $ 44,632 $ — $ 44,632 $ — $ 44,632 |
Property, Equipment and Softwar
Property, Equipment and Software, net | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, net | Property, Equipment and Software, net Property, equipment and software, net, consist of the following: June 30, December 31, Internally developed software $ 26,605 $ 16,023 Computer equipment 10,575 7,929 Leasehold improvements 8,262 4,802 Purchased software 4,352 3,326 Furniture and fixtures 3,764 2,405 Construction in progress 311 549 Total property, equipment and software 53,869 35,034 Accumulated depreciation and amortization (14,782 ) (7,983 ) Total property, equipment and software, net $ 39,087 $ 27,051 Depreciation and amortization expense on property, equipment and software was $3.8 million and $1.3 million for the second quarters of 2015 and 2014 , respectively. Depreciation and amortization expense on property, equipment and software was $6.9 million and $2.3 million for the first halves of 2015 and 2014 , respectively. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The components of other assets are as follows: June 30, December 31, Prepaid expenses $ 9,305 $ 6,807 Deferred acquisition compensation 2,108 2,695 Loan servicing assets at fair value 5,225 2,181 Accounts receivable 3,080 1,744 Deposits 665 657 Receivable from investors 480 155 Other 1,131 93 Total other assets $ 21,994 $ 14,332 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets The Company's intangible asset balance of $33.5 million at June 30, 2015 , did not significantly change during the second quarter and first half of 2015 . Amortization expense associated with intangible assets for the second quarter and first half of 2015 was $1.3 million and $2.8 million , respectively. Amortization expense associated with intangible assets for both the second quarter and first half of 2014 was $1.1 million . Goodwill As disclosed in the Company’s Annual Report, the Company’s annual goodwill impairment testing date is April 1. In testing for potential impairment of goodwill on April 1, 2015, management performed an assessment of each of the Company’s goodwill reporting units (generally defined as the Company’s businesses for which financial information is available and reviewed regularly by management) and concluded that goodwill was not impaired. The Company's goodwill balance of $72.7 million at June 30, 2015 , did not significantly change during the second quarter and first half of 2015 . We did not record any goodwill impairment expense for the second quarter and first half of 2015 or 2014 . |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following: June 30, December 31, Accrued compensation $ 12,364 $ 13,659 Accrued expenses 10,522 6,220 Loan servicing liabilities at fair value 4,831 3,973 Deferred tax liability 2,372 1,332 Deferred rent 2,265 1,377 Deferred revenue 1,450 759 Contingent liabilities 1,066 1,995 Loan funding payables 985 — Payable to issuing bank 678 267 Transaction fee refund reserve 592 828 Early stock option exercise liability 227 392 Other 472 818 Total accrued expenses and other liabilities $ 37,824 $ 31,620 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive loss are as follows: Three Months Ended June 30, 2015 2014 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Change in net unrealized loss on securities available for sale $ (831 ) $ — $ (831 ) $ — $ — $ — Other comprehensive loss $ (831 ) $ — $ (831 ) $ — $ — $ — Six Months Ended June 30, 2015 2014 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Change in net unrealized loss on securities available for sale $ (831 ) $ — $ (831 ) $ — $ — $ — Other comprehensive loss $ (831 ) $ — $ (831 ) $ — $ — $ — Accumulated other comprehensive loss balances are as follows: Total Accumulated Other Comprehensive Loss Balance at December 31, 2014 $ — Change in net unrealized loss on securities available for sale (831 ) Balance at June 30, 2015 $ (831 ) The Company did not have any items of other comprehensive income (loss) during the first half of 2014. |
Employee Incentive and Retireme
Employee Incentive and Retirement Plans | 6 Months Ended |
Jun. 30, 2015 | |
Postemployment Benefits [Abstract] | |
Employee Incentive and Retirement Plans | Employee Incentive and Retirement Plans The Company’s equity incentive plans provide for granting stock options and restricted stock units (RSUs) to employees, consultants, officers and directors. In addition, the Company offers a retirement plan and an Employee Stock Purchase Plan (ESPP) to eligible employees. Stock-based compensation expense was as follows for the periods presented: Three Months Ended Six Months Ended 2015 2014 2015 2014 Stock options $ 8,126 $ 5,454 $ 15,212 $ 12,487 ESPP 446 — 925 — RSUs 1,744 — 2,225 — Stock issued related to acquisition 2,170 2,865 5,717 2,865 Total stock-based compensation expense $ 12,486 $ 8,319 $ 24,079 $ 15,352 The following table presents the Company's stock-based compensation expense as recorded in the condensed consolidated statements of operations: Three Months Ended Six Months Ended 2015 2014 2015 2014 Sales and marketing $ 1,806 $ 615 $ 3,325 $ 4,117 Origination and servicing 867 470 1,588 828 General and administrative: Engineering and product development 2,432 1,258 3,838 1,995 Other 7,381 5,976 15,328 8,412 Total stock-based compensation expense $ 12,486 $ 8,319 $ 24,079 $ 15,352 We capitalized $1.0 million and $0.3 million of stock-based compensation expense associated with the cost of developing software for internal use during the second quarters of 2015 and 2014 , respectively. We capitalized $1.8 million and $0.6 million of stock-based compensation expense associated with the cost of developing software for internal use during the first halves of 2015 and 2014 , respectively. Stock Options There were no significant changes to the Company's incentive plans or methodology related to stock options valuation during the second quarter and first half of 2015 . The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options granted with the following assumptions during the periods presented: Three Months Ended Six Months Ended 2015 2014 2015 2014 Expected dividend yield — — — — Weighted-average assumed stock price volatility 48.3 % 52.4 % 49.4 % 54.3 % Weighted-average risk-free rate 1.72 % 1.94 % 1.61 % 1.91 % Weighted-average expected life (in years) 6.25 6.26 6.25 6.37 The Company's stock option activity for the first half of 2015 is summarized below: Number of Options Weighted- Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2014 57,386,829 $ 3.15 Options granted 1,131,839 $ 20.23 Options exercised (2,694,194 ) $ 1.22 Options forfeited/expired (1,087,294 ) $ 6.34 Outstanding at June 30, 2015 54,737,180 $ 3.53 7.47 $ 620,465 Vested and expected to vest at June 30, 2015 54,098,682 $ 3.46 7.45 $ 616,510 Exercisable at June 30, 2015 25,598,375 $ 1.25 6.35 $ 348,477 For the first half of 2015 , we granted service-based stock options to purchase 1,131,839 shares of common stock with a weighted average exercise price of $20.23 per share, a weighted average grant date fair value of $9.92 per option share and an aggregate estimated fair value of $11.2 million . For the first half of 2014 , we granted service-based stock options to purchase 17,051,372 shares of common stock with a weighted average exercise price of $5.65 per option share, a weighted average grant date fair value of $4.10 per share and a total estimated fair value of $73.5 million . Options to purchase 2,694,194 shares with a total intrinsic value of $44.7 million were exercised during the first half of 2015 . Options to purchase 4,112,354 shares with a total intrinsic value of $27.5 million were exercised during the first half of 2014 . The total grant date fair value of stock options vested during the first halves of 2015 and 2014 was $15.6 million and $7.9 million , respectively. For the first half of 2014 , we incurred $3.0 million of expense for the accelerated vesting of stock options for a terminated employee that was accounted for as a stock option modification. We did not accelerate vesting of any stock options during the second quarter and first half of 2015 . As of June 30, 2015 total unrecognized compensation cost was $114.7 million and these costs are expected to be recognized over the next 2.63 years. Since the Company holds a full valuation allowance against all deferred tax benefits, no income tax benefit has been recognized for stock-based compensation expense or for exercised stock options. During the second quarter of 2015, the Company launched a rescission offer allowing certain holders of outstanding, unexercised options and shares of common stock to rescind the grant of options and sale of shares back to the Company. The rescission offer was required by the California Department of Business Oversight to address California securities laws compliance issues raised in connection with the Company's permit for qualification filed in July 2014. The offer expired on July 15, 2015 and there were no material acceptances of the rescission offer. Restricted Stock Units During the first quarter of 2015, the Company began issuing RSUs to certain employees, officers, and directors. The following table summarizes the activities for the Company's RSUs during the first half of 2015 : Number of RSUs Weighted- Unvested at December 31, 2014 — $ — RSUs granted 2,088,758 $ 19.63 RSUs vested (47,695 ) $ 20.51 RSUs forfeited/expired (22,696 ) $ 20.44 Unvested at June 30, 2015 2,018,367 $ 19.60 Expected to vest after June 30, 2015 1,949,286 $ 19.58 For the first half of 2015 , we granted 2,088,758 RSUs with an aggregate fair value of $41.0 million . As of June 30, 2015 , there was $38.7 million of unrecognized compensation cost related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 3.66 years . Employee Stock Purchase Plan Under the Company’s ESPP, eligible employees can purchase shares of the Company’s common stock using amounts withheld through payroll deductions, subject to plan limitations. Payroll deductions are accumulated during six month offering periods. The purchase price for each share of common stock is 85% of the lower of the fair market value of the common stock on the first business day of the offering period or on the last business day of the offering period. The Company's employees purchased 211,256 shares under the ESPP during the second quarter and first half of 2015 . As of June 30, 2015 , a total of 2,788,744 shares of common stock were reserved for issuance under the ESPP. The fair value of stock purchase rights granted to employees under the ESPP is measured on the grant date using the Black-Scholes option pricing model. The compensation expense related to ESPP purchase rights is recognized on a straight-line basis, net of estimated forfeitures, over the 6 -month requisite service period. We used the following assumptions in estimating the fair value of the grant under the ESPP on June 11, 2015, which are derived using the same methodology applied to stock option assumptions: Expected dividend yield — Weighted-average assumed stock price volatility 38.8 % Weighted-average risk-free rate 0.10 % Weighted-average expected life (in years) 0.42 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the second quarter and first half of 2015 we recorded income tax expense of $0.4 million and $1.0 million , respectively, due to the recognition of a full valuation allowance against deferred tax assets and the amortization of tax deductible goodwill, which gives rise to an indefinite-lived deferred tax liability. Income tax expense was $0.6 million for both the second quarter and first half of 2014 . We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. On the basis of this evaluation, as of June 30, 2015 , a full valuation allowance of $41.2 million has been recorded. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments The Company's corporate headquarters are located in San Francisco, California, and consist of approximately 141,000 square feet of space under lease agreements, most of which expire in June 2022 . Under these lease agreements, the Company has an option to extend nearly all of the space for five years. On April 16, 2015 , the Company entered into a lease agreement for additional office space in San Francisco, California. The lease agreement commenced in the second quarter of 2015 with delivery of portions of the leased space to occur in stages through March 2017. The lease agreement expires on March 31, 2026, with the right to renew the lease term for two consecutive renewal terms of five years each. The Company has additional leased office space of approximately 20,000 square feet in Westborough, Massachusetts, under a lease agreement that expires in January 2020 . Total facilities rental expense for the second quarter and first half of 2015 was $1.6 million and $3.0 million , respectively. Total facilities rental expense for the second quarter and first half of 2014 was $0.9 million and $1.6 million , respectively. Minimum lease payments for the second quarter and first half of 2015 were $1.3 million and $2.6 million , respectively. Minimum lease payments for the second quarter and first half of 2014 were $0.8 million and $1.4 million , respectively. As of June 30, 2015 , we have pledged $0.6 million of cash as a security deposit under these lease agreements. Expected annual minimum rental commitments under these leases at June 30, 2015, are as follows: (in millions) Minimum Rental Commitments 2015 $ 3.1 2016 10.4 2017 13.0 2018 13.9 2019 13.5 Thereafter 67.4 Total $ 121.3 Loan Funding and Purchase Commitments For loans listed on the platform as a result of direct marketing efforts, we have committed to invest in such loans if investors do not provide funding for all or a portion of such loans. At June 30, 2015 , there were 816 such loans on the platform with an unfunded balance of $9.2 million . All of these loans were fully funded by investors by July 9, 2015 . Springstone has a commitment to purchase certain loans that it facilitates that are originated by an issuing bank partner if Springstone cannot arrange investors to purchase such loans. In connection with this arrangement, in June 2014 the Company entered into a contingent loan purchase agreement with an issuing bank and a third-party investor who agreed to purchase 100% participation interests in certain loans originated by an issuing bank through the Springstone platform. In March 2015 this agreement was extended to January 2016 . The Company's contingent purchase commitment provides that if the third-party investor defaults on its purchase obligations then the Company will purchase such loans from the issuing bank. The remaining limit of this contingent loan purchase commitment under the March 2015 agreement was $38.7 million at June 30, 2015 , of which none has been used. Subsequent to June 30, 2015, the issuing bank, the Company and a second third-party investor entered into a second loan purchase agreement with respect to the same type of loans covered by the March 2015 agreement. With respect to this second agreement, the Company also has a contingent purchase obligation in the event of default of the second investor. Although this second agreement does not have a purchase limit, Springstone may cease facilitating loans that are subject to these purchase commitments upon proper notice to the issuing bank. During the second quarter and first half of 2015 we were not required to purchase any loan participation interests pursuant to these contingent purchase commitments. The Company does not anticipate that the Company will be required to purchase loan participation interests under these commitments. Credit Support Agreement We are subject to a credit support agreement with a certificate investor. The credit support agreement requires us to pledge and restrict cash in support of our contingent obligation to reimburse the investor for credit losses on loans underlying the investor’s certificates that are in excess of a specified, aggregate loss threshold. We are contingently obligated to pledge cash, not to exceed $5.0 million , to support this contingent obligation. As of June 30, 2015 , and December 31, 2014, approximately $3.4 million was pledged and restricted to support this contingent obligation. As of June 30, 2015 , the credit losses pertaining to the investor’s certificates have not exceeded the specified threshold, nor are future credit losses expected to exceed the specified threshold, and thus no liability has been recorded. We currently do not anticipate recording losses under this credit support agreement. If losses related to the credit support agreement are later determined to be likely to occur and are estimable, results of operations could be affected in the period in which such losses are recorded. Loan Purchase Obligation Under our loan account program with WebBank, a Utah-chartered industrial bank that serves as our primary issuing bank, WebBank retains ownership of the loans facilitated through our marketplace for two business days after origination. As part of this arrangement, we have committed to purchase the loans at par plus accrued interest, at the conclusion of the two business days. As of June 30, 2015 , we were committed to purchase loans with an outstanding principal balance of $13.4 million at par plus accrued interest. At December 31, 2014 , we were committed to purchase loans with an outstanding principal balance of $4.1 million at par plus accrued interest. Legal On June 5, 2014, Springstone received a Civil Investigative Demand from the Consumer Financial Protection Bureau, referred to as CFPB, related to the period from 2009 through May 2014. The purpose of the investigation is to determine whether Springstone engaged in unlawful acts or practices in connection with the marketing, issuance, and servicing of loans for healthcare related financing during the period. We continue to have discussions with the CFPB regarding the potential resolution of this matter. As of June 30, 2015, we have recorded a liability for this matter, the amount of which represents the probable estimate of settlement. We do not believe the ultimate liability for such matters will be significantly different from the accrued aggregate liability at June 30, 2015. In addition to the foregoing, we may be subject to legal proceedings and regulatory actions in the ordinary course of business. We do not believe it is probable that the ultimate liability, if any, arising out of any such matter will have a material effect on our financial condition, results of operations or cash flows. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company reports segment information using the “management approach.” Under this approach, operating segments are identified in substantially the same manner as they are reported internally and used by us for purposes of evaluating performance and allocating resources. Based on this approach, the Company has one reportable segment. The Company's management reporting process is based on our internal operating structure. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Several of our executive officers and directors (including immediate family members) have opened investor accounts with us, made deposits and withdrawals to their accounts, and purchased notes or certificates. All note and certificate purchases made by related parties were transacted on terms and conditions that were not more favorable than those obtained by unaffiliated third-party investors. The deposits made by related parties whose transactions totaled $120,000 or more were $500 thousand and $950 thousand during the second quarters of 2015 and 2014, respectively, and $750 thousand and $1.15 million during the first halves of 2015 and 2014, respectively. The withdrawals made by related parties whose transactions totaled $120,000 or more were $113 thousand and $15 thousand during the second quarters of 2015 and 2014, respectively, and $455 thousand and $110 thousand during the first halves of 2015 and 2014, respectively. |
Springstone Acquisition
Springstone Acquisition | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Springstone Acquisition | Springstone Acquisition In April 2015, we completed the allocation of the purchase price of our acquisition of Springstone to acquired assets and liabilities. There were no material adjustments to the preliminary purchase price allocation as included in " Part II - Item 8 - Financial Statements and Supplementary Data - Note 17 - Springstone Acquisition " in our Annual Report. The following 2014 pro forma financial information summarizes the combined results of operations for Lending Club and Springstone, as though the companies were combined as of January 1, 2013. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have resulted had the acquisition occurred as of January 1, 2013, nor is it indicative of future operating results. The pro forma results presented below include interest expense on the debt financing, amortization of acquired intangible assets, compensation expense related to the post-acquisition compensation arrangements entered into with the continuing employees, and tax expense. Results for the second quarter and first half of 2015 , as presented in the Condensed Consolidated Statements of Operations, reflect consolidated results, including Springstone, for the full period. Three Months Ended Six Months Ended Total net revenue $ 48,720 $ 92,234 Net loss $ (7,470 ) $ (15,178 ) Basic net loss per share attributable to common stockholders $ (0.13 ) $ (0.27 ) Diluted net loss per share attributable to common stockholders $ (0.13 ) $ (0.27 ) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to June 30, 2015 , through the date the condensed consolidated financial statements were filed with the SEC. Based on this evaluation, other than as recorded or disclosed within these condensed consolidated financial statements and related notes, the Company has determined none of these events were required to be recognized or disclosed. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | LendingClub Corporation (Lending Club) is an online marketplace for connecting borrowers and investors. LC Advisors, LLC (LCA), is a registered investment advisor with the Securities and Exchange Commission (SEC) and wholly-owned subsidiary of Lending Club that acts as the general partner for certain private funds and advisor to separately managed accounts. LC Trust I (the Trust) is an independent Delaware business trust that acquires and holds loans for the sole benefit of certain investors that purchase trust certificates (Certificates) issued by the Trust and that are related to underlying loans. Springstone Financial, LLC (Springstone), is a wholly-owned subsidiary of Lending Club that facilitates education and patient finance loans. The accompanying unaudited condensed consolidated financial statements include Lending Club, the Trust and its wholly-owned subsidiaries (collectively referred to as the Company, we, or us). All intercompany balances and transactions have been eliminated. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and, in the opinion of management, reflect all adjustments (consisting of normally recurring accruals) necessary for the fair statement of the results and financial position for the periods presented. The Company's results of operations and cash flows for any interim period are not necessarily indicative of the results for the full year or any other interim period. The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (Annual Report). |
Impact of New Accounting Standards | In February 2015, the Financial Accounting Standards Board (FASB) issued new guidance amending accounting for consolidations, which will be effective January 1, 2016. The guidance changes what an investor must consider in determining whether it is required to consolidate an entity in which it holds an interest. The Company is currently evaluating the impact of this guidance on the Company’s financial position, results of operations, earnings per common share, and cash flows. In April 2015, the FASB issued new guidance amending accounting for customer's cloud based fees, which will be effective January 1, 2016. The guidance changes what a customer must consider in determining whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in accordance with guidance related to internal use software; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The Company is currently evaluating the impact of this guidance on the Company’s financial position, results of operations, earnings per common share, and cash flows. |
Marketable Securities, Available-for-sale Securities, Policy | Management evaluates whether securities available for sale are OTTI on a quarterly basis. Debt securities with unrealized losses are considered OTTI if the Company intends to sell the security or if it is more likely than not that we will be required to sell such security before any anticipated recovery. If management determines that a security is OTTI under these circumstances, the impairment recognized in earnings is measured as the entire difference between the amortized cost and then-current fair value. A security is also OTTI if management does not expect to recover all of the amortized cost of the security. In this circumstance, the impairment recognized in earnings represented estimated credit loss, and is measured by the difference between the present value of expected cash flows and the amortized cost of the security. Management utilizes cash flow models to estimate the expected future cash flow from the securities to estimate the credit loss. Expected cash flows are discounted using the security's effective interest rate. The evaluation of whether the Company expects to recover the amortized cost of a security is inherently judgmental. The evaluation includes the assessment of several bond performance indicators, including the current price and magnitude of the unrealized loss and whether the Company has received all scheduled principal and interest payments. |
Fair Value Measurement, Policy | When available, the Company uses quoted prices in active markets to measure the fair value of securities available for sale. When utilizing market data and bid-ask spreads, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. The Company generally obtains prices from at least three independent pricing sources for assets recorded at fair value. The Company's primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information, such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar "to-be-issued" securities. The Company compares the prices obtained from its primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. The Company does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. |
Net Loss Per Share and Net Lo26
Net Loss Per Share and Net Loss Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) per Share | The following table details the computation of the basic and diluted net loss per share: Three Months Ended Six Months Ended 2015 2014 2015 2014 Net loss $ (4,140 ) $ (9,187 ) $ (10,514 ) $ (16,486 ) Net loss available to common stockholders (1) $ (4,140 ) $ (9,187 ) $ (10,514 ) $ (16,486 ) Weighted average common shares - Basic 372,841,945 57,971,180 372,401,583 56,903,128 Weighted average common shares - Diluted 372,841,945 57,971,180 372,401,583 56,903,128 Basic net loss per share attributable to common stockholders $ (0.01 ) $ (0.16 ) $ (0.03 ) $ (0.29 ) Diluted net loss per share attributable to common stockholders $ (0.01 ) $ (0.16 ) $ (0.03 ) $ (0.29 ) (1) In a period with net income, both earnings and dividends (if any) are allocated to participating securities. In a period with a net loss, only declared dividends (if any) are allocated to participating securities. There were no dividends declared in the first halves of 2015 or 2014 . |
Securities Available for Sale (
Securities Available for Sale (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of June 30, 2015 , are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate debt securities $ 257,626 $ 3 $ (824 ) $ 256,805 Asset-backed securities 61,858 4 (47 ) 61,815 U.S. Treasury securities 31,563 37 — 31,600 U.S. agency securities 30,600 7 (8 ) 30,599 Municipal securities 9,948 3 (2 ) 9,949 Other securities 7,007 — (4 ) 7,003 Total securities available for sale $ 398,602 $ 54 $ (885 ) $ 397,771 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | A summary of securities available for sale with unrealized losses as of June 30, 2015 , aggregated by category and period of continuous unrealized loss, is as follows: Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 245,211 $ (824 ) $ — $ — $ 245,211 $ (824 ) Asset-backed securities 42,412 (47 ) — — 42,412 (47 ) U.S. agency securities 11,986 (8 ) — — 11,986 (8 ) Municipal securities 2,999 (2 ) — — 2,999 (2 ) Other securities 7,002 (4 ) — — 7,002 (4 ) Total securities with unrealized losses (1) $ 309,610 $ (885 ) $ — $ — $ 309,610 $ (885 ) (1) The number of investment positions with unrealized losses totaled 144 . |
Available-for-sale Securities | The maturities of securities available for sale at June 30, 2015 , are as follows: Within 1 year After 1 year through 5 years After 5 years through 10 years After 10 years Total Corporate debt securities $ 20,105 $ 236,700 $ — $ — $ 256,805 Asset-backed securities — 58,427 3,388 — 61,815 U.S. Treasury securities 4,007 27,593 — — 31,600 U.S. agency securities 3,999 26,600 — — 30,599 Municipal securities 3,108 6,841 — — 9,949 Other securities — 7,003 — — 7,003 Total fair value $ 31,219 $ 363,164 $ 3,388 $ — $ 397,771 Total amortized cost $ 31,234 $ 363,968 $ 3,400 $ — $ 398,602 |
Schedule of Realized Gain (Loss) | Proceeds and gross realized losses from sales of securities available for sale are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Proceeds $ 3,509 $ — $ 3,509 $ — Gross realized losses $ 1 $ — $ 1 $ — |
Loans, Notes and Certificates28
Loans, Notes and Certificates, and Loan Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Loans and Notes and Certificates | At June 30, 2015 and December 31, 2014 , loans, notes and certificates measured at fair value on a recurring basis were as follows: Loans Notes and Certificates June 30, December 31, June 30, December 31, Aggregate principal balance outstanding $ 3,694,823 $ 2,836,729 $ 3,717,556 $ 2,851,837 Net fair value adjustments (57,440 ) (38,224 ) (57,432 ) (38,219 ) Fair value $ 3,637,383 $ 2,798,505 $ 3,660,124 $ 2,813,618 Original term 12 - 60 months 12 - 60 months Interest rates (fixed) 4.99% - 29.90% 5.79% - 29.90% Maturity dates ≤ June 2020 ≤ December 2019 |
Past Due Financing Receivables | At June 30, 2015 and December 31, 2014 , loans for which the borrower has filed for bankruptcy or is deceased, or that were 90 days or more past due (including non-accrual loans), were as follows: June 30, 2015 December 31, 2014 > 90 days past due (1) Non-accrual loans > 90 days past due (1) Non-accrual loans Outstanding principal balance $ 23,064 $ 919 $ 19,790 $ 1,373 Net fair value adjustments (21,635 ) (842 ) (18,825 ) (1,289 ) Fair value $ 1,429 $ 77 $ 965 $ 84 # of loans (not in thousands) 2,023 76 1,797 125 (1) Includes all loans for which the Company has been notified that the borrower has filed for bankruptcy or is deceased, or that were 90 days or more past due (including non-accrual loans). |
Fair Value of Assets and Liab29
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loans, Loan Servicing Rights, Related Notes and Certificates | The following tables present the fair value hierarchy for assets and liabilities measured at fair value: June 30, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Loans $ — $ — $ 3,637,383 $ 3,637,383 Securities available for sale: Corporate debt securities — 256,805 — 256,805 Asset-backed securities — 61,815 — 61,815 U.S. Treasury securities — 31,600 — 31,600 U.S. agency securities — 30,599 — 30,599 Municipal securities — 9,949 — 9,949 Other securities — 7,003 — 7,003 Total securities available for sale — 397,771 — 397,771 Servicing assets — — 5,225 5,225 Total assets $ — $ 397,771 $ 3,642,608 $ 4,040,379 Liabilities: Notes and certificates $ — $ — $ 3,660,124 $ 3,660,124 Servicing liabilities — — 4,831 4,831 Total liabilities $ — $ — $ 3,664,955 $ 3,664,955 December 31, 2014 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Loans $ — $ — $ 2,798,505 $ 2,798,505 Servicing assets — — 2,181 2,181 Total assets $ — $ — $ 2,800,686 $ 2,800,686 Liabilities: Notes and certificates $ — $ — $ 2,813,618 $ 2,813,618 Servicing liabilities — — 3,973 3,973 Total liabilities $ — $ — $ 2,817,591 $ 2,817,591 |
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following tables present quantitative information about the significant unobservable inputs used for our level 3 fair value measurements at June 30, 2015 and December 31, 2014 : June 30, 2015 Range of Inputs Financial Instrument Unobservable Input Minimum Maximum Weighted- Average Loans, notes and certificates Discount rates 3.5 % 17.4 % 10.0 % Net cumulative expected loss rates 0.3 % 22.2 % 10.4 % Servicing asset/liability Discount rates 3.4 % 23.2 % 10.1 % Net cumulative expected loss rates 0.3 % 22.2 % 9.6 % Cumulative prepayment rates 8.0 % 36.0 % 22.3 % Base market servicing rates (% per annum on unpaid principal balance) (1) 0.5 % 0.7 % 0.5 % December 31, 2014 Range of Inputs Financial Instrument Unobservable Input Minimum Maximum Weighted- Average Loans, notes and certificates Discount rates 5.2 % 17.4 % 10.1 % Net cumulative expected loss rates 0.3 % 22.0 % 10.0 % Servicing asset/liability Discount rates 5.3 % 23.7 % 10.7 % Net cumulative expected loss rates 0.3 % 22.0 % 10.2 % Cumulative prepayment rates 16.5 % 26.7 % 20.0 % Base market servicing rates (% per annum on unpaid principal balance) (1) 0.5 % 0.7 % 0.5 % (1) Excludes ancillary fees charged to investors that would be passed on to a third-party servicer. |
Fair Value Disclosure And Measurement | The table below shows the estimated impact on the estimated fair value of servicing assets and liabilities, calculated using different base market servicing rate and prepayment rate assumptions as of June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 Servicing Assets Servicing Liabilities Servicing Assets Servicing Liabilities Weighted-average base market servicing rate assumptions 0.50 % 0.50 % 0.50 % 0.50 % Change in fair value from: Servicing rate increase to 0.60% $ (1,807 ) $ 1,684 $ (915 ) $ 1,416 Servicing rate decrease to 0.40% $ 1,889 $ (1,602 ) $ 965 $ (1,366 ) Weighted-average cumulative prepayment rate assumptions 22.3 % 22.3 % 20.0 % 20.0 % Change in fair value from: 25% increase in cumulative prepayments $ (168 ) $ (294 ) $ (65 ) $ (228 ) 25% decrease in cumulative prepayments $ 195 $ 320 $ 67 $ 231 |
Fair Value, by Balance Sheet Grouping | The following tables present the fair value hierarchy for financial instruments not recorded at fair value: June 30, 2015 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Cash and cash equivalents $ 490,466 $ — $ 490,466 $ — $ 490,466 Restricted cash 56,738 — 56,738 — 56,738 Deposits 665 — 665 — 665 Total assets $ 547,869 $ — $ 547,869 $ — $ 547,869 Liabilities: Accounts payable $ 5,142 $ — $ 5,142 $ — $ 5,142 Payables to investors 48,475 — 48,475 — 48,475 Total liabilities $ 53,617 $ — $ 53,617 $ — $ 53,617 December 31, 2014 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Cash and cash equivalents $ 869,780 $ — $ 869,780 $ — $ 869,780 Restricted cash 46,763 — 46,763 — 46,763 Deposits 657 — 657 — 657 Total assets $ 917,200 $ — $ 917,200 $ — $ 917,200 Liabilities: Accounts payable $ 5,891 $ — $ 5,891 $ — $ 5,891 Payables to investors 38,741 — 38,741 — 38,741 Total liabilities $ 44,632 $ — $ 44,632 $ — $ 44,632 |
Loans, Notes and Certificates | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Table | The following tables present additional information about level 3 loans, notes and certificates measured at fair value on a recurring basis for the first halves of 2015 and 2014 : Loans Notes and Certificates Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Beginning balance at December 31, 2014 $ 2,836,729 $ (38,224 ) $ 2,798,505 $ 2,851,837 $ (38,219 ) $ 2,813,618 Purchases of loans 3,128,589 — 3,128,589 — — — Issuances of notes and certificates — — — 1,744,741 — 1,744,741 Whole loan sales (1,383,576 ) — (1,383,576 ) — — — Principal payments (798,304 ) — (798,304 ) (790,432 ) — (790,432 ) Recoveries — (7,810 ) (7,810 ) — (7,788 ) (7,788 ) Charge-offs (88,615 ) 88,615 — (88,590 ) 88,590 — Change in fair value recorded in earnings — (100,021 ) (100,021 ) — (100,015 ) (100,015 ) Ending balance at June 30, 2015 $ 3,694,823 $ (57,440 ) $ 3,637,383 $ 3,717,556 $ (57,432 ) $ 3,660,124 Loans Notes and Certificates Outstanding Principal Balance Valuation Adjustment Fair Value Outstanding Principal Balance Valuation Adjustment Fair Value Beginning balance at December 31, 2013 $ 1,849,042 $ (20,000 ) $ 1,829,042 $ 1,859,982 $ (19,992 ) $ 1,839,990 Purchases of loans 1,634,260 — 1,634,260 — — — Issuances of notes and certificates — — — 1,001,976 — 1,001,976 Whole loan sales (631,959 ) — (631,959 ) — — — Principal payments (451,403 ) — (451,403 ) (451,699 ) — (451,699 ) Recoveries — (2,584 ) (2,584 ) — (2,565 ) (2,565 ) Charge-offs (48,425 ) 48,425 — (48,357 ) 48,357 — Change in fair value recorded in earnings — (51,154 ) (51,154 ) — (51,107 ) (51,107 ) Ending balance at June 30, 2014 $ 2,351,515 $ (25,313 ) $ 2,326,202 $ 2,361,902 $ (25,307 ) $ 2,336,595 |
Servicing asset/liability | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Table | The following table presents additional information about level 3 servicing assets and liabilities measured at fair value on a recurring basis for the first halves of 2015 and 2014 : Six Months Ended Six Months Ended Servicing Assets Servicing Liabilities Servicing Assets Servicing Liabilities Fair value at beginning of period $ 2,181 $ 3,973 $ 534 $ 936 Issuances (1) 3,384 2,938 874 1,655 Changes in fair value, included in servicing fees (1,031 ) (2,080 ) (659 ) 145 Additions, included in deferred revenue 691 — 285 — Fair value at end of period $ 5,225 $ 4,831 $ 1,034 $ 2,736 (1) Represents the offset to the gain or loss on sale of the related loan, recorded in other revenue. |
Property, Equipment and Softw30
Property, Equipment and Software, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software | Property, equipment and software, net, consist of the following: June 30, December 31, Internally developed software $ 26,605 $ 16,023 Computer equipment 10,575 7,929 Leasehold improvements 8,262 4,802 Purchased software 4,352 3,326 Furniture and fixtures 3,764 2,405 Construction in progress 311 549 Total property, equipment and software 53,869 35,034 Accumulated depreciation and amortization (14,782 ) (7,983 ) Total property, equipment and software, net $ 39,087 $ 27,051 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | The components of other assets are as follows: June 30, December 31, Prepaid expenses $ 9,305 $ 6,807 Deferred acquisition compensation 2,108 2,695 Loan servicing assets at fair value 5,225 2,181 Accounts receivable 3,080 1,744 Deposits 665 657 Receivable from investors 480 155 Other 1,131 93 Total other assets $ 21,994 $ 14,332 |
Accrued Expenses and Other Li32
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following: June 30, December 31, Accrued compensation $ 12,364 $ 13,659 Accrued expenses 10,522 6,220 Loan servicing liabilities at fair value 4,831 3,973 Deferred tax liability 2,372 1,332 Deferred rent 2,265 1,377 Deferred revenue 1,450 759 Contingent liabilities 1,066 1,995 Loan funding payables 985 — Payable to issuing bank 678 267 Transaction fee refund reserve 592 828 Early stock option exercise liability 227 392 Other 472 818 Total accrued expenses and other liabilities $ 37,824 $ 31,620 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | The components of other comprehensive loss are as follows: Three Months Ended June 30, 2015 2014 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Change in net unrealized loss on securities available for sale $ (831 ) $ — $ (831 ) $ — $ — $ — Other comprehensive loss $ (831 ) $ — $ (831 ) $ — $ — $ — Six Months Ended June 30, 2015 2014 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Change in net unrealized loss on securities available for sale $ (831 ) $ — $ (831 ) $ — $ — $ — Other comprehensive loss $ (831 ) $ — $ (831 ) $ — $ — $ — |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss balances are as follows: Total Accumulated Other Comprehensive Loss Balance at December 31, 2014 $ — Change in net unrealized loss on securities available for sale (831 ) Balance at June 30, 2015 $ (831 ) |
Employee Incentive and Retire34
Employee Incentive and Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Stock-based compensation expense was as follows for the periods presented: Three Months Ended Six Months Ended 2015 2014 2015 2014 Stock options $ 8,126 $ 5,454 $ 15,212 $ 12,487 ESPP 446 — 925 — RSUs 1,744 — 2,225 — Stock issued related to acquisition 2,170 2,865 5,717 2,865 Total stock-based compensation expense $ 12,486 $ 8,319 $ 24,079 $ 15,352 |
Schedule of Stock-Based Compensation Expense Recorded for Stock Options, Warrants and Series F Convertible Preferred Stock | The following table presents the Company's stock-based compensation expense as recorded in the condensed consolidated statements of operations: Three Months Ended Six Months Ended 2015 2014 2015 2014 Sales and marketing $ 1,806 $ 615 $ 3,325 $ 4,117 Origination and servicing 867 470 1,588 828 General and administrative: Engineering and product development 2,432 1,258 3,838 1,995 Other 7,381 5,976 15,328 8,412 Total stock-based compensation expense $ 12,486 $ 8,319 $ 24,079 $ 15,352 |
Black-Scholes Option Pricing Model to Estimate Fair Value of Stock Options Granted | the Black-Scholes option pricing model to estimate the fair value of stock options granted with the following assumptions during the periods presented: Three Months Ended Six Months Ended 2015 2014 2015 2014 Expected dividend yield — — — — Weighted-average assumed stock price volatility 48.3 % 52.4 % 49.4 % 54.3 % Weighted-average risk-free rate 1.72 % 1.94 % 1.61 % 1.91 % Weighted-average expected life (in years) 6.25 6.26 6.25 6.37 |
Options Activity Under Option Plan | The Company's stock option activity for the first half of 2015 is summarized below: Number of Options Weighted- Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2014 57,386,829 $ 3.15 Options granted 1,131,839 $ 20.23 Options exercised (2,694,194 ) $ 1.22 Options forfeited/expired (1,087,294 ) $ 6.34 Outstanding at June 30, 2015 54,737,180 $ 3.53 7.47 $ 620,465 Vested and expected to vest at June 30, 2015 54,098,682 $ 3.46 7.45 $ 616,510 Exercisable at June 30, 2015 25,598,375 $ 1.25 6.35 $ 348,477 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes the activities for the Company's RSUs during the first half of 2015 : Number of RSUs Weighted- Unvested at December 31, 2014 — $ — RSUs granted 2,088,758 $ 19.63 RSUs vested (47,695 ) $ 20.51 RSUs forfeited/expired (22,696 ) $ 20.44 Unvested at June 30, 2015 2,018,367 $ 19.60 Expected to vest after June 30, 2015 1,949,286 $ 19.58 |
Available for ESPP | |
Black-Scholes Option Pricing Model to Estimate Fair Value of Stock Options Granted | We used the following assumptions in estimating the fair value of the grant under the ESPP on June 11, 2015, which are derived using the same methodology applied to stock option assumptions: Expected dividend yield — Weighted-average assumed stock price volatility 38.8 % Weighted-average risk-free rate 0.10 % Weighted-average expected life (in years) 0.42 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Expected annual minimum rental commitments under these leases at June 30, 2015, are as follows: (in millions) Minimum Rental Commitments 2015 $ 3.1 2016 10.4 2017 13.0 2018 13.9 2019 13.5 Thereafter 67.4 Total $ 121.3 |
Springstone Acquisition (Tables
Springstone Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of Pro Forma Financial Information | Results for the second quarter and first half of 2015 , as presented in the Condensed Consolidated Statements of Operations, reflect consolidated results, including Springstone, for the full period. Three Months Ended Six Months Ended Total net revenue $ 48,720 $ 92,234 Net loss $ (7,470 ) $ (15,178 ) Basic net loss per share attributable to common stockholders $ (0.13 ) $ (0.27 ) Diluted net loss per share attributable to common stockholders $ (0.13 ) $ (0.27 ) |
Net Loss Per Share and Net Lo37
Net Loss Per Share and Net Loss Attributable to Common Stockholders - Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (4,140) | $ (9,187) | $ (10,514) | $ (16,486) |
Net loss available to common stockholders (1) | $ (4,140) | $ (9,187) | $ (10,514) | $ (16,486) |
Basic weighted average common shares outstanding (shares) | 372,841,945 | 57,971,180 | 372,401,583 | 56,903,128 |
Diluted weighted average common shares outstanding (shares) | 372,841,945 | 57,971,180 | 372,401,583 | 56,903,128 |
Net income (loss) per common share: | ||||
Basic ($ per share) | $ (0.01) | $ (0.16) | $ (0.03) | $ (0.29) |
Diluted ($ per share) | $ (0.01) | $ (0.16) | $ (0.03) | $ (0.29) |
Securities Available for Sale -
Securities Available for Sale - Amortized cost/fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 398,602 | |
Gross Unrealized Gains | 54 | |
Gross Unrealized Losses | (885) | |
Securities available for sale: | 397,771 | $ 0 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 257,626 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (824) | |
Securities available for sale: | 256,805 | |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 61,858 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (47) | |
Securities available for sale: | 61,815 | |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 31,563 | |
Gross Unrealized Gains | 37 | |
Gross Unrealized Losses | 0 | |
Securities available for sale: | 31,600 | |
U.S. agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 30,600 | |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | (8) | |
Securities available for sale: | 30,599 | |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,948 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (2) | |
Securities available for sale: | 9,949 | |
Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,007 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (4) | |
Securities available for sale: | $ 7,003 |
Securities Available for Sale39
Securities Available for Sale - Continuous loss (Details) - Jun. 30, 2015 $ in Thousands | USD ($)position |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | $ 309,610 |
Unrealized Losses, Less than 12 months | (885) |
Fair Value, 12 months or longer | 0 |
Unrealized Losses, 12 months or longer | 0 |
Fair Value | 309,610 |
Unrealized Losses | $ (885) |
Number of positions with unrealized losses | position | 144 |
Corporate debt securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | $ 245,211 |
Unrealized Losses, Less than 12 months | (824) |
Fair Value, 12 months or longer | 0 |
Unrealized Losses, 12 months or longer | 0 |
Fair Value | 245,211 |
Unrealized Losses | (824) |
Asset-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 42,412 |
Unrealized Losses, Less than 12 months | (47) |
Fair Value, 12 months or longer | 0 |
Unrealized Losses, 12 months or longer | 0 |
Fair Value | 42,412 |
Unrealized Losses | (47) |
U.S. agency securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 11,986 |
Unrealized Losses, Less than 12 months | (8) |
Fair Value, 12 months or longer | 0 |
Unrealized Losses, 12 months or longer | 0 |
Fair Value | 11,986 |
Unrealized Losses | (8) |
Municipal securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 2,999 |
Unrealized Losses, Less than 12 months | (2) |
Fair Value, 12 months or longer | 0 |
Unrealized Losses, 12 months or longer | 0 |
Fair Value | 2,999 |
Unrealized Losses | (2) |
Other securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 7,002 |
Unrealized Losses, Less than 12 months | (4) |
Fair Value, 12 months or longer | 0 |
Unrealized Losses, 12 months or longer | 0 |
Fair Value | 7,002 |
Unrealized Losses | $ (4) |
Securities Available for Sale40
Securities Available for Sale - Maturities (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Fair value | |
Within 1 year | $ 31,219 |
After 1 year through 5 years | 363,164 |
After 5 years through 10 years | 3,388 |
After 10 years | 0 |
Total | 397,771 |
Amortized cost | |
Within 1 year | 31,234 |
After 1 year through 5 years | 363,968 |
After 5 years through 10 years | 3,400 |
After 10 years | 0 |
Total | 398,602 |
Corporate debt securities | |
Fair value | |
Within 1 year | 20,105 |
After 1 year through 5 years | 236,700 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Total | 256,805 |
Asset-backed securities | |
Fair value | |
Within 1 year | 0 |
After 1 year through 5 years | 58,427 |
After 5 years through 10 years | 3,388 |
After 10 years | 0 |
Total | 61,815 |
U.S. Treasury securities | |
Fair value | |
Within 1 year | 4,007 |
After 1 year through 5 years | 27,593 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Total | 31,600 |
U.S. agency securities | |
Fair value | |
Within 1 year | 3,999 |
After 1 year through 5 years | 26,600 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Total | 30,599 |
Municipal securities | |
Fair value | |
Within 1 year | 3,108 |
After 1 year through 5 years | 6,841 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Total | 9,949 |
Other securities | |
Fair value | |
Within 1 year | 0 |
After 1 year through 5 years | 7,003 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Total | $ 7,003 |
Securities Available for Sale41
Securities Available for Sale - Gross realized losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 3,509 | $ 0 | $ 3,509 | $ 0 |
Gross realized losses | $ 1 | $ 0 | $ 1 | $ 0 |
Loans, Notes and Certificates42
Loans, Notes and Certificates, and Loan Servicing Rights (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 3,637,383 | $ 2,798,505 |
Fair Value | $ 3,660,124 | $ 2,813,618 |
Interest rate, minimum | 4.99% | 5.79% |
Interest rate, maximum | 29.90% | 29.90% |
Fair Value, Measurements, Recurring | Loans at Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | $ 3,694,823 | $ 2,836,729 |
Fair value adjustments | (57,440) | (38,224) |
Fair Value | 3,637,383 | 2,798,505 |
Fair Value, Measurements, Recurring | Notes And Certificates At Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate principal balance outstanding | 3,717,556 | 2,851,837 |
Fair value adjustments | (57,432) | (38,219) |
Fair Value | $ 3,660,124 | $ 2,813,618 |
Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and certificates term | 12 months | 12 months |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and certificates term | 60 months | 60 months |
Loans, Notes and Certificates43
Loans, Notes and Certificates, and Loan Servicing Rights - Past Due Table (Details) - Loans at Fair Value $ in Thousands | Jun. 30, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding principal balance, past 90 days due | $ 23,064 | $ 19,790 |
Outstanding principal balance, non-accrual loans | 919 | 1,373 |
Net fair value adjustments, past 90 days due | (21,635) | (18,825) |
Net fair value adjustments, non-accrual loans | (842) | (1,289) |
Fair value, past 90 days due | 1,429 | 965 |
Fair value, non-accrual loans | $ 77 | $ 84 |
Number of loans, 90 days past due | Loan | 2,023 | 1,797 |
Number of loans, non-accrual loans | Loan | 76 | 125 |
Loans, Notes and Certificates44
Loans, Notes and Certificates, and Loan Servicing Rights - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Number of days overdue to be considered a non-accrual loan | 120 days | |
Debt instrument, interest rate, effective percentage rate range, minimum | 4.99% | 5.79% |
Debt instrument, interest rate, effective percentage rate range, maximum | 29.90% | 29.90% |
Minimum | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Notes and certificates term | 12 months | 12 months |
Maximum | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Notes and certificates term | 60 months | 60 months |
Loan Servicing Rights | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Payment frequency for the debt instrument | monthly | monthly |
Debt instrument, interest rate, effective percentage rate range, minimum | 2.99% | 5.90% |
Debt instrument, interest rate, effective percentage rate range, maximum | 33.15% | 33.15% |
Debt instrument, maturity date, description | June 2,022 | December 2,019 |
Principal balance of underlying loan servicing rights | $ 2,847 | $ 1,872 |
Loan Servicing Rights | Minimum | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Notes and certificates term | 12 months | 12 months |
Loan Servicing Rights | Maximum | ||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||
Notes and certificates term | 84 months | 60 months |
Fair Value of Assets and Liab45
Fair Value of Assets and Liabilities - Loans, Loan Servicing Rights, Related Notes and Certificates (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($)source | Dec. 31, 2014USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | $ 3,637,383 | $ 2,798,505 |
Securities available for sale: | 397,771 | 0 |
Servicing assets | 5,225 | 2,181 |
Total assets | 4,040,379 | 2,800,686 |
Notes and certificates | 3,660,124 | 2,813,618 |
Servicing liabilities | 4,831 | 3,973 |
Total liabilities | 3,664,955 | 2,817,591 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 256,805 | |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 61,815 | |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 31,600 | |
U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 30,599 | |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 9,949 | |
Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 7,003 | |
Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Securities available for sale: | 0 | |
Servicing assets | 0 | 0 |
Total assets | 0 | 0 |
Notes and certificates | 0 | 0 |
Servicing liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 1 Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 1 Inputs | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 1 Inputs | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 1 Inputs | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 1 Inputs | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Securities available for sale: | 397,771 | |
Servicing assets | 0 | 0 |
Total assets | 397,771 | 0 |
Notes and certificates | 0 | 0 |
Servicing liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 256,805 | |
Level 2 Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 61,815 | |
Level 2 Inputs | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 31,600 | |
Level 2 Inputs | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 30,599 | |
Level 2 Inputs | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 9,949 | |
Level 2 Inputs | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 7,003 | |
Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 3,637,383 | 2,798,505 |
Securities available for sale: | 0 | |
Servicing assets | 5,225 | 2,181 |
Total assets | 3,642,608 | 2,800,686 |
Notes and certificates | 3,660,124 | 2,813,618 |
Servicing liabilities | 4,831 | 3,973 |
Total liabilities | 3,664,955 | $ 2,817,591 |
Level 3 Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 3 Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 3 Inputs | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 3 Inputs | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 3 Inputs | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | 0 | |
Level 3 Inputs | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale: | $ 0 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of pricing sources | source | 3 |
Fair Value of Assets and Liab46
Fair Value of Assets and Liabilities - Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value Inputs [Abstract] | ||
Cumulative prepayment rates | 22.30% | 20.00% |
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.50% | 0.50% |
Minimum | ||
Fair Value Inputs [Abstract] | ||
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.40% | |
Maximum | ||
Fair Value Inputs [Abstract] | ||
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.70% | |
Level 3 Inputs | Minimum | Loans, notes and certificates | ||
Fair Value Inputs [Abstract] | ||
Discount rates | 3.50% | 5.20% |
Net cumulative expected loss rates | 0.30% | 0.30% |
Level 3 Inputs | Minimum | Servicing asset/liability | ||
Fair Value Inputs [Abstract] | ||
Discount rates | 3.40% | 5.30% |
Net cumulative expected loss rates | 0.30% | 0.30% |
Cumulative prepayment rates | 8.00% | 16.50% |
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.50% | 0.50% |
Level 3 Inputs | Maximum | Loans, notes and certificates | ||
Fair Value Inputs [Abstract] | ||
Discount rates | 17.40% | 17.40% |
Net cumulative expected loss rates | 22.20% | 22.00% |
Level 3 Inputs | Maximum | Servicing asset/liability | ||
Fair Value Inputs [Abstract] | ||
Discount rates | 23.20% | 23.70% |
Net cumulative expected loss rates | 22.20% | 22.00% |
Cumulative prepayment rates | 36.00% | 26.70% |
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.70% | 0.70% |
Level 3 Inputs | Weighted- Average | Loans, notes and certificates | ||
Fair Value Inputs [Abstract] | ||
Discount rates | 10.00% | 10.10% |
Net cumulative expected loss rates | 10.40% | 10.00% |
Level 3 Inputs | Weighted- Average | Servicing asset/liability | ||
Fair Value Inputs [Abstract] | ||
Discount rates | 10.10% | 10.70% |
Net cumulative expected loss rates | 9.60% | 10.20% |
Cumulative prepayment rates | 22.30% | 20.00% |
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.50% | 0.50% |
Fair Value of Assets and Liab47
Fair Value of Assets and Liabilities - Additional Information about Loans, Notes and Certificates Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Loans | ||
Outstanding Principal Balance, Beginning | $ 2,836,729 | $ 1,849,042 |
Valuation Adjustment, Beginning | (38,224) | (20,000) |
Fair Value, Beginning | 2,798,505 | 1,829,042 |
Outstanding Principal Balance, Purchases of loans | 3,128,589 | 1,634,260 |
Valuation Adjustment, Purchases of loans | 0 | 0 |
Fair Value, Purchases of loans | 3,128,589 | 1,634,260 |
Outstanding Principal Balance, Issuances of notes and certificates | 0 | 0 |
Valuation Adjustment, Issuances of notes and certificates | 0 | 0 |
Fair Value, Issuances of notes and certificates | 0 | 0 |
Outstanding Principal Balance, Whole loan sales | (1,383,576) | (631,959) |
Valuation Adjustment, Whole loan sales | 0 | 0 |
Fair Value, Whole loan sales | (1,383,576) | (631,959) |
Outstanding Principal Balance, Principal payments | (798,304) | (451,403) |
Valuation Adjustment, Principal payments | 0 | 0 |
Fair Value, Principal payments | (798,304) | (451,403) |
Outstanding Principal Balance, Recoveries | 0 | 0 |
Valuation Adjustment, Recoveries | (7,810) | (2,584) |
Fair Value, Recoveries | (7,810) | (2,584) |
Outstanding Principal Balance, Charge-offs | (88,615) | (48,425) |
Asset Valuation Adjustment, Charge-offs | 88,615 | 48,425 |
Fair Value, Charge-offs | 0 | 0 |
Outstanding Principal Balance, Change in fair value recorded in earnings | 0 | 0 |
Valuation Adjustment, Change in fair value recorded in earnings | (100,021) | (51,154) |
Fair Value, Change in fair value recorded in earnings | (100,021) | (51,154) |
Outstanding Principal Balance, Ending | 3,694,823 | 2,351,515 |
Valuation Adjustment, Ending | (57,440) | (25,313) |
Fair Value, Ending | 3,637,383 | 2,326,202 |
Notes and Certificates | ||
Outstanding Principal Balance, Beginning | 2,851,837 | 1,859,982 |
Valuation Adjustment, Beginning | (38,219) | (19,992) |
Fair Value, Beginning | 2,813,618 | 1,839,990 |
Outstanding Principal Balance, Purchases of loans | 0 | 0 |
Valuation Adjustment, Purchases of loans | 0 | 0 |
Fair Value, Purchases of loans | 0 | 0 |
Outstanding Principal Balance, Issuances of notes and certificates | 1,744,741 | 1,001,976 |
Valuation Adjustment, Issuances of notes and certificates | 0 | 0 |
Fair Value, Issuances of notes and certificates | 1,744,741 | 1,001,976 |
Outstanding Principal Balance, Whole loan sales | 0 | 0 |
Valuation Adjustment, Whole loan sales | 0 | 0 |
Fair Value, Whole loan sales | 0 | 0 |
Outstanding Principal Balance, Principal payments | (790,432) | (451,699) |
Valuation Adjustment, Principal payments | 0 | 0 |
Fair Value, Principal payments | (790,432) | (451,699) |
Outstanding Principal Balance, Recovers | 0 | 0 |
Valuation Adjustment, Recoveries | (7,788) | (2,565) |
Fair Value, Recoveries | (7,788) | (2,565) |
Outstanding Principal Balance, Charge-offs | (88,590) | (48,357) |
Valuation Adjustment, Charge-offs | 88,590 | 48,357 |
Fair Value, Charge-offs | 0 | 0 |
Outstanding Principal Balance, Change in fair value recorded in earnings | 0 | 0 |
Valuation Adjustment, Change in fair value recorded in earnings | (100,015) | (51,107) |
Fair Value, Change in fair value recorded in earnings | (100,015) | (51,107) |
Outstanding Principal Balance, Ending | 3,717,556 | 2,361,902 |
Valuation Adjustment, Ending | (57,432) | (25,307) |
Fair Value, Ending | $ 3,660,124 | $ 2,336,595 |
Fair Value of Assets and Liab48
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Servicing Assets, Changes in fair value due to: | |||
Fair value at beginning of period | $ 2,181 | ||
Fair value at end of period | 5,225 | $ 2,181 | |
Servicing Liabilities, Changes in fair value due to: | |||
Fair value at beginning of period | 3,973 | ||
Fair value at end of period | 4,831 | 3,973 | |
Fair Value, Measurements, Recurring | |||
Servicing Assets, Changes in fair value due to: | |||
Fair value at beginning of period | 2,181 | $ 534 | 534 |
Additions, included in other/deferred revenue | 3,384 | 874 | |
Changes in fair value, included in servicing fees | (1,031) | (659) | |
Fair value at end of period | 5,225 | 1,034 | 2,181 |
Servicing Liabilities, Changes in fair value due to: | |||
Fair value at beginning of period | 3,973 | 936 | 936 |
Additions, included in other/deferred revenue | 2,938 | 1,655 | |
Changes in fair value, included in servicing fees | (2,080) | 145 | |
Fair value at end of period | 4,831 | 2,736 | $ 3,973 |
Deferred Revenue | Fair Value, Measurements, Recurring | |||
Servicing Assets, Changes in fair value due to: | |||
Additions, included in other/deferred revenue | 691 | 285 | |
Servicing Liabilities, Changes in fair value due to: | |||
Additions, included in other/deferred revenue | $ 0 | $ 0 |
Fair Value of Assets and Liab49
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured Using Different Market Servicing Rates and Different Prepayment (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.50% | 0.50% | |
Cumulative prepayment rates | 22.30% | 20.00% | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.50% | 0.50% | |
Changes in fair value, included in servicing fees | $ (1,031) | $ (659) | |
Changes in fair value, included in servicing fees | $ (2,080) | $ 145 | |
Cumulative prepayment rates | 22.30% | 20.00% | |
Servicing rate increase to 0.60% | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value, included in servicing fees | $ (1,807) | $ (915) | |
Servicing rate increase to 0.60% | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value, included in servicing fees | 1,684 | 1,416 | |
Servicing rate decrease to 0.40% | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value, included in servicing fees | 1,889 | 965 | |
Servicing rate decrease to 0.40% | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value, included in servicing fees | (1,602) | (1,366) | |
25% increase in cumulative prepayments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value, included in servicing fees | (168) | (65) | |
25% increase in cumulative prepayments | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value, included in servicing fees | (294) | (228) | |
25% decrease in cumulative prepayments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value, included in servicing fees | 195 | 67 | |
25% decrease in cumulative prepayments | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Changes in fair value, included in servicing fees | $ 320 | $ 231 | |
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.40% | ||
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Base market servicing rates (% per annum on unpaid principal balance)(1) | 0.70% |
Fair Value of Assets and Liab50
Fair Value of Assets and Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 4,040,379 | $ 2,800,686 |
Total liabilities | 3,664,955 | 2,817,591 |
Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 397,771 | 0 |
Total liabilities | 0 | 0 |
Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 3,642,608 | 2,800,686 |
Total liabilities | 3,664,955 | 2,817,591 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 490,466 | 869,780 |
Restricted cash | 56,738 | 46,763 |
Deposits | 665 | 657 |
Total assets | 547,869 | 917,200 |
Accounts payable | 5,142 | 5,891 |
Payables to investors | 48,475 | 38,741 |
Total liabilities | 53,617 | 44,632 |
Portion at Other than Fair Value Measurement | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Deposits | 0 | 0 |
Total assets | 0 | 0 |
Accounts payable | 0 | 0 |
Payables to investors | 0 | 0 |
Total liabilities | 0 | 0 |
Portion at Other than Fair Value Measurement | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 490,466 | 869,780 |
Restricted cash | 56,738 | 46,763 |
Deposits | 665 | 657 |
Total assets | 547,869 | 917,200 |
Accounts payable | 5,142 | 5,891 |
Payables to investors | 48,475 | 38,741 |
Total liabilities | 53,617 | 44,632 |
Portion at Other than Fair Value Measurement | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Deposits | 0 | 0 |
Total assets | 0 | 0 |
Accounts payable | 0 | 0 |
Payables to investors | 0 | 0 |
Total liabilities | 0 | 0 |
Balance at Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 490,466 | 869,780 |
Restricted cash | 56,738 | 46,763 |
Deposits | 665 | 657 |
Total assets | 547,869 | 917,200 |
Accounts payable | 5,142 | 5,891 |
Payables to investors | 48,475 | 38,741 |
Total liabilities | $ 53,617 | $ 44,632 |
Property, Equipment and Softw51
Property, Equipment and Software, net (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Internally developed software | $ 26,605 | $ 16,023 |
Computer equipment | 10,575 | 7,929 |
Leasehold improvements | 8,262 | 4,802 |
Purchased software | 4,352 | 3,326 |
Furniture and fixtures | 3,764 | 2,405 |
Construction in progress | 311 | 549 |
Total property, equipment and software | 53,869 | 35,034 |
Accumulated depreciation and amortization | (14,782) | (7,983) |
Total property, equipment and software, net | $ 39,087 | $ 27,051 |
Property, Equipment and Softw52
Property, Equipment and Software, net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 9,753 | $ 3,463 | ||
Property, Equipment and Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 3,800 | $ 1,300 | $ 6,900 | $ 2,300 |
Other Assets (Detail)
Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Assets [Abstract] | ||
Other assets | $ 21,994 | $ 14,332 |
Prepaid expenses | ||
Other Assets [Abstract] | ||
Other assets | 9,305 | 6,807 |
Deferred acquisition compensation | ||
Other Assets [Abstract] | ||
Other assets | 2,108 | 2,695 |
Loan servicing assets at fair value | ||
Other Assets [Abstract] | ||
Other assets | 5,225 | 2,181 |
Accounts receivable | ||
Other Assets [Abstract] | ||
Other assets | 3,080 | 1,744 |
Deposits | ||
Other Assets [Abstract] | ||
Other assets | 665 | 657 |
Receivable from investors | ||
Other Assets [Abstract] | ||
Other assets | 480 | 155 |
Other | ||
Other Assets [Abstract] | ||
Other assets | $ 1,131 | $ 93 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Intangible assets, net | $ 33,483 | $ 33,483 | $ 36,302 | ||
Amortization expense | 1,300 | $ 1,100 | 2,800 | $ 1,100 | |
Goodwill | $ 72,683 | $ 72,683 | $ 72,592 |
Accrued Expenses and Other Li55
Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 12,364 | $ 13,659 |
Accrued expenses | 10,522 | 6,220 |
Loan servicing liabilities at fair value | 4,831 | 3,973 |
Deferred tax liability | 2,372 | 1,332 |
Deferred rent | 2,265 | 1,377 |
Deferred revenue | 1,450 | 759 |
Contingent liabilities | 1,066 | 1,995 |
Loan funding payables | 985 | 0 |
Payable to issuing bank | 678 | 267 |
Transaction fee refund reserve | 592 | 828 |
Early stock option exercise liability | 227 | 392 |
Other | 472 | 818 |
Total accrued expenses and other liabilities | $ 37,824 | $ 31,620 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss - Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Equity [Abstract] | ||||
Change in net unrealized loss on securities available for sale | $ (831) | $ 0 | $ (831) | $ 0 |
Tax Effect, Change in net unrealized loss on securities available for sale | 0 | 0 | 0 | 0 |
Net of Tax, Change in net unrealized loss on securities available for sale | (831) | 0 | (831) | 0 |
Other comprehensive loss, before tax | (831) | 0 | (831) | 0 |
Income tax effect | 0 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | $ (831) | $ 0 | $ (831) | $ 0 |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at December 31, 2014 | $ 0 | |||
Change in net unrealized loss on securities available for sale | $ (831) | $ 0 | (831) | $ 0 |
Balance at June 30, 2015 | $ (831) | $ (831) |
Employee Incentive and Retire58
Employee Incentive and Retirement Plans - Schedule of Stock-Based Compensation Expense Recorded for Stock Options, Warrants and Series F Convertible Preferred Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation, net | $ 12,486 | $ 8,319 | $ 24,079 | $ 15,352 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,806 | 615 | 3,325 | 4,117 |
Origination and servicing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 867 | 470 | 1,588 | 828 |
General and administrative: | Engineering and product development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2,432 | 1,258 | 3,838 | 1,995 |
General and administrative: | Other | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 7,381 | 5,976 | 15,328 | 8,412 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 8,126 | 5,454 | 15,212 | 12,487 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 446 | 0 | 925 | 0 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,744 | 0 | 2,225 | 0 |
Stock issued related to acquisition | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,170 | $ 2,865 | $ 5,717 | $ 2,865 |
Employee Incentive and Retire59
Employee Incentive and Retirement Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option granted to purchase of common stock (shares) | 1,131,839 | |||
Options granted, weighted average exercise price ($ per share) | $ 20.23 | |||
Options exercised (shares) | 2,694,194 | 4,112,354 | ||
Total intrinsic values of options exercised | $ 44.7 | $ 27.5 | ||
Total fair value of shares vested | $ 15.6 | 7.9 | ||
Expense related to accelerated vesting of stock options | $ 3 | 3 | ||
Purchased by employees (number of shares) | 211,256 | 211,256 | ||
Internally Developed Software | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, capitalized amount | $ 1 | $ 0.3 | $ 1.8 | $ 0.6 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option granted to purchase of common stock (shares) | 17,051,372 | |||
Options granted, weighted average exercise price ($ per share) | $ 5.65 | |||
Common stock, weighted average grant date fair value per share ($ per share) | $ 9.92 | $ 4.10 | ||
Options granted, total estimated fair value | $ 11.2 | $ 73.5 | ||
Unrecognized compensation cost | 114.7 | $ 114.7 | ||
Unrecognized compensation cost expected period for recognition | 2 years 7 months 18 days | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost expected period for recognition | 3 years 7 months 29 days | |||
RSUs granted (shares) | 2,088,758 | |||
Aggregate fair value | $ 41 | |||
Unrecognized compensation cost | $ 38.7 | $ 38.7 | ||
Available for ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase period | 6 months | |||
Purchase price of common stock | 85.00% | |||
Total common stock authorized and reserved for future issuance (shares) | 2,788,744 | 2,788,744 | ||
Requisite service period | 6 months |
Employee Incentive and Retire60
Employee Incentive and Retirement Plans - Black-Scholes Option Pricing Model to Estimate Fair Value of Stock Options Granted (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average assumed stock price volatility | 48.30% | 52.40% | 49.40% | 54.30% |
Weighted-average risk-free rate | 1.72% | 1.94% | 1.61% | 1.91% |
Weighted-average expected life (in years) | 6 years 3 months | 6 years 3 months 5 days | 6 years 3 months | 6 years 4 months 15 days |
Employee Incentive and Retire61
Employee Incentive and Retirement Plans - Options Activity Under Option Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Balances, beginning balance, Number of Shares | 57,386,829 | |
Options Granted, Number of Shares | 1,131,839 | |
Options Exercised, Number of Shares | (2,694,194) | (4,112,354) |
Options Forfeited/Expired, Number of Shares | (1,087,294) | |
Balances, ending balance, Number of Shares | 54,737,180 | |
Vested and expected to vest, Number of Shares | 54,098,682 | |
Exercisable, Number of Shares | 25,598,375 | |
Balances, beginning balance, Weighted Average Exercise Price Per Share | $ 3.15 | |
Options Granted, Weighted Average Exercise Price Per Share | 20.23 | |
Options Exercised, Weighted Average Exercise Price Per Share | 1.22 | |
Options Forfeited/Expired, Weighted Average Exercise Price Per Share | 6.34 | |
Balances, ending balance, Weighted Average Exercise Price Per Share | 3.53 | |
Vested and expected to vest, Weighted Average Exercise Price Per Share | 3.46 | |
Exercisable, Weighted Average Exercise Per Share | $ 1.25 | |
Outstanding, Weighted Average Remaining Contractual Life | 7 years 5 months 20 days | |
Vested and expected to vest, Weighted Average Remaining Contractual Life | 7 years 5 months 12 days | |
Exercisable, Weighted Average Remaining Contractual Life | 6 years 4 months 6 days | |
Outstanding, Aggregate Intrinsic Value | $ 620,465 | |
Vested and expected to vest, Aggregate Intrinsic Value | 616,510 | |
Exercisable, Aggregate Intrinsic Value | $ 348,477 |
Employee Incentive and Retire62
Employee Incentive and Retirement Plans - Restricted Stock Unit Activity and Weighted Average Grant Date Fair Value table (Details) - Jun. 30, 2015 - RSUs - $ / shares | Total |
Number of Shares (shares) | |
Unvested at December 31, 2014 | 0 |
RSUs granted | 2,088,758 |
RSUs vested | (47,695) |
RSUs forfeited/expired | (22,696) |
Unvested at June 30, 2015 | 2,018,367 |
Expected to vest after June 30, 2015 | 1,949,286 |
Weighted- Average Grant Date Fair Value ($ per share) | |
Unvested at December 31, 2014 | $ 0 |
RSUs granted | 19.63 |
RSUs vested | 20.51 |
RSUs forfeited/expired | 20.44 |
Unvested at June 30, 2015 | 19.60 |
Expected to vest after June 30, 2015 | $ 19.58 |
Employee Incentive and Retire63
Employee Incentive and Retirement Plans - Black-Scholes Inputs for Employee Stock Purchase Plan (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average assumed stock price volatility | 48.30% | 52.40% | 49.40% | 54.30% |
Weighted-average risk-free rate | 1.72% | 1.94% | 1.61% | 1.91% |
Weighted-average expected life (in years) | 6 years 3 months | 6 years 3 months 5 days | 6 years 3 months | 6 years 4 months 15 days |
Available for ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | |||
Weighted-average assumed stock price volatility | 38.80% | |||
Weighted-average risk-free rate | 0.10% | |||
Weighted-average expected life (in years) | 5 months 2 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 389 | $ 640 | $ 1,016 | $ 640 |
Valuation allowance | $ 41,200 | $ 41,200 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) ft² in Thousands | Apr. 16, 2015renewal_option | Jun. 30, 2015USD ($)ft² | Jun. 30, 2015USD ($)ft² | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)ft²Loan | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Commitments and Contingencies [Line Items] | |||||||
Lease agreement renewal term | 5 years | ||||||
Number of renewal terms | renewal_option | 2 | ||||||
Rental expense | $ 1,600,000 | $ 900,000 | $ 3,000,000 | $ 1,600,000 | |||
Annual lease payments | 1,300,000 | $ 800,000 | 2,600,000 | $ 1,400,000 | |||
Security deposit made under lease agreement | $ 600,000 | 600,000 | 600,000 | ||||
Payments due in 2015 | 3,100,000 | 3,100,000 | 3,100,000 | ||||
Payments due in 2016 | 10,400,000 | 10,400,000 | 10,400,000 | ||||
Payments due in 2017 | 13,000,000 | 13,000,000 | 13,000,000 | ||||
Payments due in 2018 | 13,900,000 | 13,900,000 | 13,900,000 | ||||
Payments due in 2019 | 13,500,000 | 13,500,000 | 13,500,000 | ||||
Payments due thereafter | 67,400,000 | 67,400,000 | 67,400,000 | ||||
Total payments due | 121,300,000 | 121,300,000 | $ 121,300,000 | ||||
Number of unfunded loans | Loan | 816 | ||||||
Unfunded loan balance | $ 9,200,000 | 9,200,000 | $ 9,200,000 | ||||
Date of fully funded loans | Jul. 9, 2015 | ||||||
Participation interests to be purchased | 100.00% | ||||||
Remaining limit of contingent loan purchase commitment | $ 38,700,000 | 38,700,000 | $ 38,700,000 | ||||
Maximum cash pledged | 5,000,000 | 5,000,000 | 5,000,000 | ||||
Pledged and restricted to support contingent obligation | 3,400,000 | 3,400,000 | $ 3,400,000 | $ 3,400,000 | |||
Loan purchase obligation period | 2 days | ||||||
Contingent loan purchase commitment limit | $ 13,400,000 | $ 13,400,000 | $ 13,400,000 | $ 4,100,000 | |||
San Francisco | |||||||
Commitments and Contingencies [Line Items] | |||||||
Area of property (square feet) | ft² | 141 | 141 | 141 | ||||
Lease agreement expiration date | Jun. 1, 2022 | ||||||
Lease agreement renewal term | 5 years | ||||||
Westborough | |||||||
Commitments and Contingencies [Line Items] | |||||||
Area of property (square feet) | ft² | 20 | 20 | 20 |
Segment Reporting (Details)
Segment Reporting (Details) | 6 Months Ended |
Jun. 30, 2015segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Related Party Transactions - Su
Related Party Transactions - Summary of Deposits and Withdrawals Made by Related Parties (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Deposits and Withdrawals $120000 or More | ||||
Related Party Transaction [Line Items] | ||||
Deposits | $ 500,000 | $ 950,000 | $ 750,000 | $ 1,150,000 |
Withdrawals | $ 113,000 | $ 15,000 | 455,000 | $ 110,000 |
Minimum | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction threshold | $ 120,000 |
Springstone Acquisition - Summa
Springstone Acquisition - Summary of Pro Forma Financial Information (Detail) - Jun. 30, 2014 - Springstone Financial, Llc - USD ($) $ / shares in Units, $ in Thousands | Total | Total |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total net revenue | $ 48,720 | $ 92,234 |
Net loss | $ (7,470) | $ (15,178) |
Basic net loss per share attributable to common stockholders ($ per share) | $ (0.13) | $ (0.27) |
Diluted net loss per share attributable to common stockholders ($ per share) | $ (0.13) | $ (0.27) |