Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-36771 | ||
Entity Registrant Name | LendingClub Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0605731 | ||
Entity Address, Address Line One | 595 Market Street, Suite 200, | ||
Entity Address, City or Town | San Francisco, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94105 | ||
City Area Code | 415 | ||
Local Phone Number | 632-5600 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | LC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement for the Registrant’s 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2021. | ||
Entity Central Index Key | 0001409970 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (shares) | 101,043,924 | ||
Entity Public Float | $ 1,622,720,682 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and due from banks | $ 35,670 | $ 5,197 | |
Interest-bearing deposits in banks | 651,456 | 519,766 | |
Total cash and cash equivalents | 687,126 | 524,963 | |
Restricted cash | [1] | 76,460 | 103,522 |
Securities available for sale at fair value ($256,170 and $159,164 at amortized cost, respectively) | 263,530 | 142,226 | |
Loans held for sale (includes $142,370 and $121,902 at fair value, respectively) | [1] | 391,248 | 121,902 |
Loans and leases held for investment | 2,899,126 | 0 | |
Allowance for loan and lease losses | (144,389) | 0 | |
Loans and leases held for investment, net | 2,754,737 | 0 | |
Retail and certificate loans held for investment at fair value | [1] | 229,719 | 636,686 |
Other loans held for investment at fair value | [1] | 21,240 | 49,954 |
Property, equipment and software, net | 97,996 | 96,641 | |
Goodwill | 75,717 | 0 | |
Other assets | [1] | 302,546 | 187,399 |
Total assets | 4,900,319 | 1,863,293 | |
Deposits: | |||
Interest-bearing | 2,919,203 | 0 | |
Noninterest-bearing | 216,585 | 0 | |
Total deposits | 3,135,788 | 0 | |
Short-term borrowings | 27,780 | 104,989 | |
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 271,933 | 0 | |
Retail notes, certificates and secured borrowings at fair value | [1] | 229,719 | 636,774 |
Payable on Structured Program borrowings | [1] | 65,451 | 152,808 |
Other long-term debt | 15,455 | 0 | |
Other liabilities | [1] | 303,951 | 244,551 |
Total liabilities | 4,050,077 | 1,139,122 | |
Equity | |||
Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 and 43,000 shares issued and outstanding, respectively | 0 | 0 | |
Common stock, $0.01 par value; 180,000,000 shares authorized; 101,043,924 and 88,149,510 shares issued and outstanding, respectively | 1,010 | 881 | |
Additional paid-in capital | 1,609,820 | 1,508,020 | |
Accumulated deficit | (767,634) | (786,214) | |
Accumulated other comprehensive income | 7,046 | 1,484 | |
Total equity | 850,242 | 724,171 | |
Total liabilities and equity | $ 4,900,319 | $ 1,863,293 | |
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Securities available for sale at amortized cost | $ 256,170 | $ 159,164 | |
Loans held for sale at fair value | $ 142,370 | $ 121,902 | |
Preferred stock, par value ($ per share) | $ 0.01 | $ 0.01 | |
Preferred stock, authorized (shares) | 1,200,000 | 1,200,000 | |
Preferred stock, issued (shares) | 0 | 43,000 | |
Preferred stock, outstanding (shares) | 0 | 43,000 | |
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (shares) | 180,000,000 | 180,000,000 | |
Common stock, shares issued (shares) | 101,043,924 | 88,149,510 | |
Common stock, shares outstanding (shares) | 101,043,924 | 88,149,510 | |
Restricted cash | [1] | $ 76,460 | $ 103,522 |
Retail and certificate loans held for investment at fair value | [1] | 229,719 | 636,686 |
Other loans held for investment at fair value | 2,754,737 | 0 | |
Other assets | [1] | 302,546 | 187,399 |
Total assets of consolidated VIEs | 4,900,319 | 1,863,293 | |
Retail notes, certificates and secured borrowings at fair value | [1] | 229,719 | 636,774 |
Payable on Structured Program borrowings | [1] | 65,451 | 152,808 |
Other liabilities | [1] | 303,951 | 244,551 |
Total liabilities | 4,050,077 | 1,139,122 | |
Consolidated VIEs | |||
Loans held for sale at fair value | 41,734 | 98,190 | |
Restricted cash | 13,462 | 15,983 | |
Retail and certificate loans held for investment at fair value | 10,281 | 52,620 | |
Other loans held for investment at fair value | 20,929 | 50,102 | |
Other assets | 584 | 1,270 | |
Retail notes, certificates and secured borrowings at fair value | 10,281 | 52,620 | |
Payable on Structured Program borrowings | 65,451 | 152,808 | |
Other liabilities | 467 | 729 | |
Total liabilities | $ 76,199 | $ 206,157 | |
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Non-interest income | ||||||
Marketplace revenue | $ 578,580 | [1] | $ 245,314 | [1] | $ 646,735 | |
Other non-interest income | 27,219 | [1] | 13,442 | [1] | 13,831 | |
Total non-interest income | 605,799 | [1] | 258,756 | [1] | 660,566 | |
Interest income | ||||||
Interest on loans held for sale | [1] | 29,540 | 72,876 | 109,493 | ||
Interest and fees on loans and leases held for investment | [1] | 188,977 | 0 | 0 | ||
Interest on retail and certificate loans held for investment at fair value | [1] | 57,684 | 115,952 | 214,395 | ||
Interest on other loans held for investment at fair value | [1] | 4,436 | 7,688 | 1,104 | ||
Interest on securities available for sale | [1] | 11,025 | 12,125 | 14,351 | ||
Other interest income | [1] | 1,170 | 1,053 | 6,002 | ||
Total interest income | 292,832 | [1] | 209,694 | [1] | 345,345 | |
Interest expense | ||||||
Interest on deposits | [1] | 7,228 | 0 | 0 | ||
Interest on short-term borrowings | [1] | 3,677 | 17,837 | 26,826 | ||
Interest on retail notes, certificates and secured borrowings | [1] | 57,684 | 115,952 | 214,395 | ||
Interest on Structured Program borrowings | [1] | 9,638 | 16,204 | 5,070 | ||
Interest on other long-term debt | [1] | 1,774 | 373 | 1,013 | ||
Total interest expense | 80,001 | [1] | 150,366 | [1] | 247,304 | |
Net interest income and fair value adjustments | 212,831 | [1] | 59,328 | [1] | 98,041 | |
Total net revenue | 818,630 | [1] | 318,084 | [1] | 758,607 | |
Provision for credit losses | [2] | 138,800 | [1] | 3,382 | [1] | 0 |
Non-interest expense | ||||||
Compensation and benefits | [1] | 288,390 | 252,517 | 333,628 | ||
Marketing | [1] | 156,142 | 51,518 | 235,337 | ||
Equipment and software | [1] | 39,490 | 26,842 | 24,927 | ||
Occupancy | [1] | 24,249 | 27,870 | 29,367 | ||
Depreciation and amortization | [1] | 44,285 | 54,030 | 59,152 | ||
Professional services | [1] | 47,572 | 41,780 | 43,010 | ||
Other non-interest expense | [1] | 61,258 | 47,762 | 64,077 | ||
Total non-interest expense | 661,386 | [1] | 502,319 | [1] | 789,498 | |
Income (Loss) before income tax benefit | 18,444 | (187,617) | (30,891) | |||
Income tax benefit (expense) | 136 | 79 | 201 | |||
Consolidated net income (loss) | [2] | 18,580 | (187,538) | (30,690) | ||
Less: Income attributable to noncontrolling interests | 0 | 0 | 55 | |||
LendingClub net income (loss) | $ 18,580 | (187,538) | (30,745) | |||
Net income (loss) per share | ||||||
Diluted EPS - common stockholders ($ per share) | [3] | $ 0.18 | ||||
Weighted-average common shares - Diluted (shares) | [3] | 102,147,353 | ||||
Common Stock | ||||||
Non-interest expense | ||||||
LendingClub net income (loss) | $ 18,456 | $ (154,664) | $ (30,745) | |||
Net income (loss) per share | ||||||
Basic EPS - common stockholders ($ per share) | [3] | $ 0.19 | $ (2.63) | $ (0.35) | ||
Diluted EPS - common stockholders ($ per share) | [3] | $ (2.63) | $ (0.35) | |||
Weighted-average common shares - Basic (shares) | [3] | 97,486,754 | 77,934,302 | 87,278,596 | ||
Weighted-average common shares - Diluted (shares) | [3] | 77,934,302 | 87,278,596 | |||
Preferred Stock | ||||||
Non-interest expense | ||||||
LendingClub net income (loss) | $ 124 | $ (32,874) | ||||
Net income (loss) per share | ||||||
Basic EPS - common stockholders ($ per share) | [3] | $ 0.19 | $ 1.39 | $ 0 | ||
Diluted EPS - common stockholders ($ per share) | [3] | $ 1.39 | $ 0 | |||
Weighted-average common shares - Basic (shares) | [3] | 653,118 | 12,505,393 | 0 | ||
Weighted-average common shares - Diluted (shares) | [3] | 12,505,393 | 0 | |||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||||
[2] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||||
[3] | See “ Notes to Consolidated Financial Statements – Note 4. Net Income (Loss) Per Share ” for additional information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
LendingClub net income (loss) | $ 18,580 | $ (187,538) | $ (30,745) |
Other comprehensive income (loss), before tax: | |||
Net unrealized gain (loss) on securities available for sale | 5,562 | 2,044 | (526) |
Other comprehensive income (loss), before tax | 5,562 | 2,044 | (526) |
Income tax effect | 0 | (5) | 216 |
Other comprehensive income (loss), net of tax | 5,562 | 2,049 | (742) |
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | (20) |
LendingClub other comprehensive income (loss), net of tax | 5,562 | 2,049 | (722) |
LendingClub comprehensive income (loss) | 24,142 | (185,489) | (31,467) |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 | (20) |
Total comprehensive income (loss) | $ 24,142 | $ (185,489) | $ (31,487) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total LendingClub Stockholders’ Equity | Noncontrolling Interests | ||||
Beginning balances (in shares) at Dec. 31, 2018 | 0 | 85,928,127 | 456,540 | ||||||||||
Beginning balances at Dec. 31, 2018 | $ 870,981 | $ 0 | $ 864 | $ 1,405,392 | $ (19,485) | $ 157 | $ (517,727) | $ 869,201 | $ 1,780 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Stock-based compensation | 79,944 | 79,944 | 79,944 | ||||||||||
Net issuances under equity incentive plans, net of tax (shares) | [1],[2] | 2,665,309 | 4,851 | ||||||||||
Net issuances under equity incentive plans, net of tax | [1],[2] | (19,903) | $ 26 | (19,864) | $ (65) | (19,903) | |||||||
ESPP purchase shares (in shares) | 163,970 | ||||||||||||
ESPP purchase shares | 2,412 | $ 2 | 2,410 | 2,412 | |||||||||
Net issuances of stock related to acquisition | 0 | ||||||||||||
Net unrealized gain on securities available for sale, net of tax | (742) | (722) | (722) | (20) | |||||||||
Dividends paid and return of capital to noncontrolling interests | (1,815) | (1,815) | |||||||||||
Consolidated net income (loss) | (30,690) | [3] | (30,745) | (30,745) | 55 | ||||||||
Ending balances (in shares) at Dec. 31, 2019 | 0 | 88,757,406 | 461,391 | ||||||||||
Ending balances at Dec. 31, 2019 | 900,187 | $ 0 | $ 892 | 1,467,882 | $ (19,550) | (565) | (548,472) | 900,187 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Stock-based compensation | 66,626 | 66,626 | 66,626 | ||||||||||
Net issuances under equity incentive plans, net of tax (shares) | [2] | 3,692,185 | 5,658 | ||||||||||
Net issuances under equity incentive plans, net of tax | [2] | (6,949) | $ 36 | (6,914) | $ (71) | (6,949) | |||||||
Net issuances of stock related to acquisition | 0 | ||||||||||||
Net issuances of preferred stock in exchange for common stock (in shares) | [4] | 43,000 | (4,300,081) | ||||||||||
Net issuances of preferred stock in exchange for common stock | [4] | (50,204) | $ (43) | 43 | (50,204) | (50,204) | |||||||
Retirement of treasury stock (in shares) | (467,049) | ||||||||||||
Retirement of treasury stock | $ (4) | (19,617) | $ 19,621 | ||||||||||
Net unrealized gain on securities available for sale, net of tax | 2,049 | 2,049 | 2,049 | ||||||||||
Consolidated net income (loss) | (187,538) | [3] | (187,538) | (187,538) | |||||||||
Ending balances (in shares) at Dec. 31, 2020 | 43,000 | 88,149,510 | 0 | ||||||||||
Ending balances at Dec. 31, 2020 | 724,171 | $ 0 | $ 881 | 1,508,020 | $ 0 | 1,484 | (786,214) | 724,171 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Stock-based compensation | $ 69,762 | 69,762 | 69,762 | ||||||||||
Net issuances under equity incentive plans, net of tax (shares) | 264,826 | 4,833,300 | [2] | 4,251 | [2] | ||||||||
Net issuances under equity incentive plans, net of tax | [2] | $ (9,387) | $ 48 | (9,343) | $ (92) | (9,387) | |||||||
Net issuances of stock related to acquisition (in shares) | [5] | 3,761,114 | |||||||||||
Net issuances of stock related to acquisition | [5] | 41,462 | $ 38 | 41,424 | 41,462 | ||||||||
Net issuances of preferred stock in exchange for common stock (in shares) | (43,000) | 4,300,000 | |||||||||||
Net issuances of preferred stock in exchange for common stock | $ 43 | (43) | |||||||||||
Retirement of treasury stock (in shares) | (4,251) | ||||||||||||
Retirement of treasury stock | 92 | $ 92 | 92 | ||||||||||
Net unrealized gain on securities available for sale, net of tax | 5,562 | 5,562 | 5,562 | ||||||||||
Consolidated net income (loss) | 18,580 | [3] | 18,580 | 18,580 | |||||||||
Ending balances (in shares) at Dec. 31, 2021 | 0 | 101,043,924 | 0 | ||||||||||
Ending balances at Dec. 31, 2021 | $ 850,242 | $ 0 | $ 1,010 | $ 1,609,820 | $ 0 | $ 7,046 | $ (767,634) | $ 850,242 | $ 0 | ||||
[1] | Includes shares purchased by the Company in lieu of issuing fractional shares in connection with a 1-for-5 reverse stock split effective on July 5, 2019. | ||||||||||||
[2] | Includes shares that were transferred to the Company to satisfy payment of all or a portion of the exercise price in connection with the exercise of stock options. | ||||||||||||
[3] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | ||||||||||||
[4] | Includes a payment of $50.2 million that was recorded as a deemed dividend within accumulated deficit related to the beneficial conversion feature of the Series A Preferred Stock issued on March 20, 2020. | ||||||||||||
[5] | Stock issued as part of the consideration paid related to the Acquisition. See “ Notes to Consolidated Financial Statements – Note 2. Business Acquisition. ” |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Millions | Jul. 05, 2019 | Dec. 31, 2020USD ($) | |
Statement of Stockholders' Equity [Abstract] | |||
Payment of deemed dividend due to beneficial conversion feature | $ 50.2 | ||
1-for-5 stock split ratio | [1] | 0.20 | |
[1] | Includes shares purchased by the Company in lieu of issuing fractional shares in connection with a 1-for-5 reverse stock split effective on July 5, 2019. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Cash Flows from Operating Activities: | ||||||
Consolidated net income (loss) | [1] | $ 18,580 | $ (187,538) | $ (30,690) | ||
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used for) operating activities: | ||||||
Net fair value adjustments | [1] | (3,986) | 105,002 | 144,273 | ||
Provision for credit losses | [1] | 138,800 | [2] | 3,382 | [2] | 0 |
Change in fair value of loan servicing assets | [1] | 54,108 | 58,730 | 58,172 | ||
Stock-based compensation, net | [1] | 66,759 | 61,533 | 73,639 | ||
Depreciation, amortization, and accretion | [1] | 5,575 | 56,526 | 62,151 | ||
Gain on sales of loans | [1] | (70,116) | (30,812) | (67,716) | ||
Other, net | [1] | 8,654 | 12,506 | 5,829 | ||
Net change to loans held for sale | [1] | 4,856 | 435,245 | (440,192) | ||
Net change in operating assets and liabilities: | ||||||
Other assets | [1] | (9,733) | 34,483 | 1,499 | ||
Other liabilities | [1] | 26,372 | (131,026) | (77,609) | ||
Net cash provided by (used for) operating activities | [1] | 239,869 | 418,031 | (270,644) | ||
Cash Flows from Investing Activities: | ||||||
Acquisition of company | [1] | (145,344) | 0 | 0 | ||
Cash received from acquisition | [1] | 668,236 | 0 | 0 | ||
Net change in loans and leases | [1] | (1,517,132) | 7,151 | 9,150 | ||
Net decrease in retail and certificate loans | [1] | 437,870 | 411,428 | 602,678 | ||
Purchases of securities available for sale | [1] | (100,474) | (53,736) | (144,481) | ||
Proceeds from sales of securities available for sale | [1] | 106,192 | 6,217 | 12,548 | ||
Proceeds from maturities and paydowns of securities available for sale | [1] | 143,402 | 225,458 | 223,980 | ||
Purchases of property, equipment and software, net | [1] | (34,413) | (31,147) | (50,668) | ||
Other investing activities | [1] | (12,747) | 400 | 561 | ||
Net cash (used for) provided by investing activities | [1] | (454,410) | 565,771 | 653,768 | ||
Cash Flows from Financing Activities: | ||||||
Net change in demand deposits and savings accounts | [1] | 1,126,659 | 0 | 0 | ||
Proceeds from PPPLF | [1] | 325,194 | 0 | 0 | ||
Repayment on PPPLF | [1] | (474,223) | 0 | 0 | ||
Proceeds from issuance of retail notes and certificates | [1] | 0 | 314,995 | 632,962 | ||
Principal payments on retail notes and certificates | [1] | (438,032) | (729,405) | (1,259,203) | ||
Principal payments on Structured Program borrowings | [1] | (90,187) | (73,710) | (58,025) | ||
Proceeds from issuance of notes and certificates from Structured Program transactions | [1] | 0 | 186,190 | 42,500 | ||
Principal payments on short-term borrowings | [1] | (87,640) | (1,662,199) | (2,801,824) | ||
Principal payments on long-term debt | [1] | (2,834) | (14,419) | (13,651) | ||
Proceeds from short-term borrowings | [1] | 0 | 1,195,261 | 2,943,948 | ||
Deemed dividend paid to preferred stockholder | [1] | 0 | (50,204) | 0 | ||
Other financing activities | [1] | (9,295) | (8,948) | (26,767) | ||
Net cash provided by (used for) financing activities | [1] | 349,642 | (842,439) | (540,060) | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 135,101 | 141,363 | (156,936) | |||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 628,485 | 487,122 | 644,058 | |||
Cash, Cash Equivalents and Restricted Cash, End of Period | 763,586 | 628,485 | 487,122 | |||
Supplemental Cash Flow Information: | ||||||
Cash paid for interest | 77,334 | 143,840 | 254,585 | |||
Cash paid for operating leases included in the measurement of lease liabilities | 20,546 | 16,679 | 16,816 | |||
Non-cash investing activity | ||||||
Loans and leases held for investment transferred to loans held for sale | [3] | 402,960 | 0 | 0 | ||
Net securities retained from Structured Program transactions | [3] | 0 | 43,458 | 197,267 | ||
Accruals for property, equipment and software | [3] | 0 | 686 | 1,745 | ||
Non-cash investing and financing activity: | ||||||
Transfer of whole loans to redeem certificates | 0 | 17,414 | 122,330 | |||
Net issuances of stock related to acquisition | 41,462 | [4] | 0 | 0 | ||
Non-cash financing activity | ||||||
Exchange of common stock for preferred stock | 0 | 207,244 | 0 | |||
Derecognition of payable on Structured Program borrowings | $ 0 | $ 0 | $ 200,881 | |||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||||
[2] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||||
[3] | See “ Notes to Consolidated Financial Statements – Note 8. Fair Value of Assets and Liabilities ” for other non-cash investing activity. | |||||
[4] | Stock issued as part of the consideration paid related to the Acquisition. See “ Notes to Consolidated Financial Statements – Note 2. Business Acquisition. ” |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | |||||
Cash and cash equivalents | $ 687,126 | $ 524,963 | |||
Restricted cash | [1] | 76,460 | 103,522 | ||
Total cash, cash equivalents and restricted cash | $ 763,586 | $ 628,485 | $ 487,122 | $ 644,058 | |
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation On February 1, 2021, LendingClub Corporation (LendingClub) completed the acquisition of Radius Bancorp, Inc. (Radius), whereby LendingClub became a bank holding company and formed LendingClub Bank, National Association (LC Bank) as its wholly-owned subsidiary. The Company operates the vast majority of its business through LC Bank, as a lender and originator of loans and as a regulated bank in the United States. All intercompany balances and transactions have been eliminated. These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, contain all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. These estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. The acquisition of Radius (the Acquisition) significantly changed the presentation of the Company’s financial statements, which are now structured according to the presentation requirements for bank holding companies under Article 9 of the United States Securities and Exchange Commission’s (SEC) Regulation S-X. Prior period amounts in the financial statements and related footnotes have been reclassified to conform to the current period presentation. See “ Note 2. Business Acquisition ” which illustrates the reclassification adjustments made to align with the current presentation. Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents have original maturities of three months or less and include cash on hand, cash items in transit, and amounts due from or held with other depository institutions, primarily with the Federal Reserve Bank (FRB). Restricted Cash Cash items held with other depository institutions in which the ability to withdraw funds is restricted by contractual provisions is classified as restricted cash. Such amounts include: (i) cash pledged as security related to LendingClub’s issuing bank activities and transactions with certain investors; and (ii) cash received from borrowers on loans owned and not yet distributed to investors. Securities Debt securities purchased and asset-backed securities retained from the sale of loans are classified as available for sale (AFS) securities. AFS securities represent investment securities with readily determinable fair values that the Company: (i) does not hold for trading purposes and (ii) does not have the positive intent and ability to hold to maturity. AFS securities are measured at fair value, with unrealized gains and losses reported in “Accumulated other comprehensive income” within the equity section of the Balance Sheet. The amount reported in “Accumulated other comprehensive income” is net of any valuation allowance and applicable income taxes. Management evaluates whether debt AFS securities with unrealized losses are impaired on a quarterly basis. For any security that has declined in fair value below its amortized cost basis, the Company recognizes an impairment loss in current period earnings if management has the intent to sell the security or if it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. The assessment of impairment also considers whether the decline in fair value below the security’s amortized cost basis is attributable to credit-related factors. If credit-related factors exist, credit-related impairment has occurred regardless of the Company’s intent to hold the security until it recovers. The credit-related portion of impairment is recognized as provision for credit loss expense in earnings with a corresponding valuation allowance for AFS securities on the Balance Sheet, to the extent the allowance does not reduce the value of the security below its fair value. AFS securities where the expected cash flows are significantly lower than that of the contractual future cash flows at the time of acquisition are considered to be purchased with credit deterioration (PCD). The discounted differential in expected and contractual cash flows is included with the purchase price of the asset to determine amortized cost of the security with an equal and offsetting valuation allowance for credit losses. Equity securities that do not have readily determinable fair values are generally recorded at cost adjusted for impairment, if any. These securities include FRB stock and Federal Home Loan Bank stock and are reported as “Nonmarketable equity investments” in “Other assets” on the Balance Sheet. Loans and Leases The Company initially classifies loans and leases as either held for sale (HFS) or held for investment (HFI) based on management’s assessment of its intent and ability to hold the loans for the foreseeable future or until maturity. Management’s intent and ability with respect to certain loans may change from time to time. In order to reclassify loans to HFS, management must have the intent to sell the loans and the ability to reasonably identify the specific loans to be sold. HFI loans, with the exception of HFI loans accounted for under the fair value option, are measured at historical cost and reported at their outstanding principal balances net of any charge-offs, unamortized deferred fees and costs on originated loans, and for purchased loans, net of any unamortized premiums and discounts. Leases are recorded at the discounted amounts of lease payments receivable plus the estimated residual value of the leased asset, net of unearned income and unamortized deferred fees and costs. Lease payments receivable reflect contractual lease payments adjusted for renewal or termination options that the Company believes the customer is reasonably certain to exercise. Unearned income, deferred fees and costs, and discounts and premiums are accreted and amortized to interest income over the contractual life of the loan using its effective interest rate. HFI loans measured at fair value under the Company’s election of the fair value option include retail and certificate loans and the related notes and certificates. Fees and costs for loans accounted for under the fair value option are recognized in earnings at the inception of the loan and are not deferred. Due to the payment dependent feature of the notes and certificates, changes in the fair value of the notes and certificates are offset by changes in the fair values of related loans, resulting in no net effect on the Company’s earnings. Loans initially classified as HFS are reported at their fair value with the Company’s election of the fair value option. Origination fees are recognized in earnings within “Marketplace revenue” on the Consolidated Statements of Operations (Income Statement) at the time of loan origination. Changes in the fair value are recorded in “Net fair value adjustments” included in “Marketplace revenue” on the Income Statement. In certain circumstances, the Company may transfer loans from HFI to HFS. At the time of transfer, these loans are valued at the lower of amortized cost or fair value. Accrued Interest Income and Non-Accrual Policy Interest income is accrued as earned. The accrual of interest income is discontinued, and the loan or lease is placed on nonaccrual status at 90 days past due or when reasonable doubt exists as to timely collection. Past due status is based on the contractual terms of the loan or lease. When a loan or lease is placed on nonaccrual status, all income previously accrued but not collected is reversed against the current period’s interest income. Because the Company has a nonaccrual policy which results in the timely reversal of past-due accrued interest, it does not record an allowance for credit losses (ACL) on accrued interest receivable. Interest collections on nonaccrual loans and leases for which the ultimate collectability of principal is uncertain are applied as principal reductions; otherwise, such collections are credited to income when received. Nonaccrual loans and leases are returned to accrual status when there no longer exists concern over collectability, the borrower has demonstrated, over time, both the intent and ability to repay and the loan or lease has been brought current and future payments are reasonably assured. HFI loans accounted for under the fair value option and HFS loans are not reported as nonaccrual. Allowance for Credit Losses The ACL represents management’s estimate of expected credit losses in the loan and lease portfolio, excluding loans accounted for under the fair value option. The ACL is measured based on a lifetime expected loss model, which does not require a loss event to occur before a credit loss is recognized. Under the lifetime expected credit loss model, the Company estimates the allowance based on relevant available information related to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. The ACL is estimated using a discounted cash flow (DCF) approach where effective interest rates are used to calculate the net present value of expected cash flows. The effective interest rate is calculated based on the periodic interest income received from the loan’s contractual cash flows and the net investment in the loan, which includes deferred origination fees and costs, to provide a constant rate of return over the term. The Company evaluates its estimate of expected credit losses each reporting period and records any additions to the allowance on the Income Statement as “Provision for credit losses.” Amounts determined to be uncollectible are charged-off to the allowance. Estimates of expected credit losses include expected recoveries of amounts previously charged-off and amounts expected to be charged-off. If amounts previously charged off are subsequently expected to be collected, the Company may recognize a negative allowance, which is limited to the amount that was previously charged off. Under applicable accounting guidance, for reporting purposes, the loan and lease portfolio is categorized by portfolio segment. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine the ACL. The Company’s two portfolio segments are consumer and commercial. The Company further disaggregates its portfolio segments into various classes of financing receivables based on their underlying risk characteristics. The classes within the consumer portfolio segment are unsecured consumer, secured consumer and residential mortgages. The classes within the commercial portfolio segment are commercial and industrial, commercial real estate, and equipment finance. The ACL is measured on a collective basis when loans share similar risk characteristics. Relevant risk characteristics for the consumer portfolio include product type, risk rating, loan term, and monthly vintage. Relevant risk characteristics for the commercial portfolio include product type, risk rating and PCD status. Loans measured on a collective basis generally have an ACL comprised of a quantitative, or modeled, component that is supplemented by a framework of qualitative factors, as discussed below. The Company will continue to monitor its loan pools on an ongoing basis and adjust accordingly as the risk characteristics of the financial assets may change over time. If a given financial asset does not share similar risk characteristics with other financial assets, the Company shall measure expected credit losses on an individual, rather than on a collective basis. Loans evaluated on an individual basis generally have an ACL that is measured in reference to any collateral securing the loan and/or expected cash flows which are specific to the borrower. Allowance Calculation Methodology The Company generally estimates expected credit losses over the contractual term of its loans. The contractual term is adjusted for estimated prepayments when appropriate. Expected renewals and extensions do not adjust the contractual term unless the extension or renewal option is through a troubled debt restructuring (TDR) that is reasonably expected to occur or represents an unconditionally cancellable option held by the borrower. The quantitative, or modeled, component of the ACL is primarily based on statistical models that use known or estimated data as of the balance sheet date and forecasted data over the reasonable and supportable period. Known and estimated data include current probability and timing of default, loss rate and recovery exposure at default, timing and amount of estimated prepayments, timing and amount of expected draws (for unfunded lending commitments), and relevant risk characteristics. Certain of the Company’s commercial portfolios have limited internal historical loss data and use external credit loss information, including historical charge-off and balance data for peer banking institutions. The Company obtains historical and forecast macroeconomic information to inform its view of the long-term condition of the economy. Forward-looking macroeconomic factors considered in the Company’s macroeconomic variable integrated statistical models include gross domestic product (GDP), unemployment rate, unemployment insurance claims, housing prices, and retail sales. Forward-looking macroeconomic factors are incorporated into the Company’s models for a two-year reasonable and supportable economic forecast period followed by a one-year reversion period during which expected credit losses are expected to revert back on a straight-line basis to historical losses unadjusted for economic conditions. The reasonable and supportable economic forecast period and reversion methodology are accounting estimates which may change in future periods as a result of changes to the current macroeconomic environment. The Company’s statistical models produce expected cash flows, which are then discounted at the effective interest rate to derive net present value. The effective interest rate is calculated based on the periodic interest income received from the loan’s contractual cash flows and the net investment in the loan, which includes deferred origination fees and costs, to provide a constant rate of return over the term. This net present value is then compared to the amortized cost basis to derive the expected credit losses. As a result, the quantitative, or modeled, portion of ACL is estimated using a DCF approach. The Company also considers the need for qualitative adjustments to the modeled estimate of expected credit losses. For this purpose, the Company established a qualitative factor framework to periodically assess qualitative adjustments to address certain identified elements that are not directly captured by the statistically modeled expected credit loss. These factors may include the impact of risk rating downgrades, changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in lending management, non-modeled macroeconomic outlook and other external factors. Zero Credit Loss Expectation Exception The Company has a zero loss expectation when the loans, or portions thereof, are issued or guaranteed by certain U.S. government entities or agencies, as those entities or agencies have a long history of no defaults and the highest credit ratings issued by rating agencies. Loans held for investment, or portions thereof, which meet this criterion do not have an ACL. Reserve for Unfunded Lending Commitments The ACL includes an estimate for expected credit losses on off-balance sheet commitments to extend credit and unused lines of credit. The Company estimates these expected credit losses for the unfunded portion of the commitments that are not unconditionally cancellable depending on the likelihood that funding will occur. The reserve for unfunded lending commitments is reported in “Other liabilities” on the Balance Sheet. Individually Assessed Loans Loans that do not share similar risk characteristics with other financial assets, including those whose terms have been modified in a TDR and collateral-dependent loans, are individually assessed for purposes of measuring expected credit losses using the DCF approach. For loans that are determined to be collateral dependent, the ACL is determined based on the fair value of the collateral. Loans are considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially satisfied through sale or operation of the collateral. For such loans, the ACL is calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. Purchased Credit Deteriorated Assets PCD assets are acquired financial assets (or groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment. The Company considers indicators such as loan rating, FICO score, days past due status, nonaccrual status, TDR status, charge-off status, bankruptcy, modifications or risk rating to determine whether an acquired asset meets the definition of PCD. PCD assets are recorded on the acquisition date at their purchase price plus any related initial ACL, which results in a “gross-up” of the asset’s initial amortized cost basis. Recognition of the initial ACL upon the acquisition of PCD assets does not impact net income. Changes in estimates of expected credit losses after acquisition are recognized through the provision for credit losses. Acquired non-PCD assets are accounted for in a manner similar to originated financial assets, whereby any initial ACL is recorded through the “Provision for credit losses” on the Income Statement. Charge-Offs Charge-offs are recorded when the Company determines that a loan balance is uncollectible or a loss-confirming event has occurred. Loss confirming events usually involve the receipt of specific adverse information about the borrower and may include borrower delinquency status, bankruptcy, foreclosure, or receipt of an asset valuation indicating a shortfall between the value of the collateral and the book value of the loan when that collateral asset is the sole source of repayment. A full or partial charge-off reduces the amortized cost basis of the loan and the related ACL. Unsecured personal loans are charged-off when a borrower is (i) contractually 120 days past due or (ii) two payments past due and has filed for bankruptcy or is deceased. For acquired PCD loans where all or a portion of the loan balance had been charged off prior to acquisition, and for which active collection efforts are still underway, the ACL included as part of the grossed-up loan balance at acquisition is immediately charged off if required by the Company’s existing charge off policy. Additionally, the Company is required to consider its existing policies in determining whether to charge off any financial assets, regardless of whether a charge-off was recorded by the predecessor company. The initial ACL recognized on PCD assets includes the gross-up of the loan balance reduced by immediate charge-offs for loans previously charged off by the acquired company or which meet the Company’s charge-off policy on the date of acquisition. Charge-offs against the allowance related to such acquired PCD loans do not result in an income statement impact. Servicing Assets Servicing assets are capitalized as separate assets when loans are sold and servicing is retained. The Company records servicing assets at their estimated fair values. Servicing asset fair value is based on the excess of the contractual servicing fee over an estimated market servicing rate. When servicing assets are recognized from the sale of loans originated by the Company, the fair value of the servicing asset is included as a component of the gain or loss on the loan sale and reported within “Marketplace revenue” on the Income Statement. Subsequent changes in fair value are reported within “Servicing fees” in “Marketplace revenue” during the period in which the changes occur. Servicing assets are reported in “Other assets” on the Balance Sheet. Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. Fair value is based on an exit price notion that maximizes the use of observable inputs and minimizes the use of unobservable inputs. The Company measures certain assets and liabilities at fair value when permitted or mandated by accounting standards, when the Company has elected the fair value option, and to fulfill fair value disclosure requirements. Assets and liabilities are recorded at fair value on a recurring or nonrecurring basis. Assets and liabilities that are recorded at fair value on a recurring basis require a fair value measurement at each reporting period. Such assets include AFS securities, HFS and HFI loans in which the Company has elected the fair value option, and servicing assets. The Company has elected the fair value option for certain loans and servicing assets and uses fair value measurements to record the assets on a recurring basis. The Company also uses fair value measurements for AFS securities. The fair value hierarchy includes a three-level hierarchy that assigns the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. Level 1 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 — Unobservable inputs. Unobservable inputs require greater judgment in measuring fair value. In instances where there is limited or no observable market data, fair value measurements for assets and liabilities are based primarily upon the Company’s own estimates, and the measurements reflect information and assumptions that management believes a market participant would use in pricing the asset or liability. Property, Equipment and Software, net Property, equipment and software are carried at cost less accumulated depreciation and amortization. The Company uses the straight-line method of depreciation and amortization. Estimated useful lives range from three years to five years for furniture and fixtures, computer equipment, and software. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. Internally developed software is capitalized when preliminary development efforts are successfully completed and it is probable that the project will be completed, and the software will be used as intended. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts, and costs incurred for upgrades and enhancements to add functionality of the software. Other costs are expensed as incurred. The Company evaluates impairments of its property, equipment and software whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the asset is not recoverable, measurement of an impairment loss is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. Goodwill and Other Intangible Assets Goodwill is recorded when the purchase price of an acquired business exceeds the fair value of the net assets acquired. Goodwill is assigned to the Company’s reporting units at the acquisition date according to the expected economic benefits that the acquired business will provide to the reporting unit. A reporting unit is a business operating segment or a component of a business operating segment. The Company identifies its reporting units based on how the operating segments and reporting units are managed. Accordingly, the Company allocated goodwill to the LC Bank operating segment. The goodwill of each reporting unit is tested for impairment annually or more frequently in certain circumstances. The Company’s annual impairment testing is performed in the fourth quarter of each calendar year. Impairment exists when the carrying value of goodwill exceeds its estimated fair value. Adverse changes in impairment indicators such as lower than forecast financial performance, increased competition, increased regulatory oversight, or unplanned changes in operations could result in impairment. The Company can elect to either qualitatively assess goodwill for impairment, or bypass the qualitative test and proceed directly to a quantitative test. If the Company performs a qualitative assessment of goodwill to test for impairment and concludes it is more likely than not that the estimated fair value of a reporting unit is greater than its carrying value, a quantitative test is not required. However, if we determine it is more likely than not that a reporting unit’s fair value is less than its carrying amount, a quantitative assessment is performed to determine if goodwill impairment exists. Under the quantitative impairment assessment, the fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. Other intangible assets with determinable lives are recorded at their fair value upon completion of a business acquisition or certain other transactions, and generally represent the value of customer contracts or relationships. Such assets are amortized over their useful lives in a manner that best reflects their economic benefit, which may include straight-line or accelerated methods of amortization. Other intangible assets are reviewed for impairment quarterly and when events or changes in circumstances indicate that their carrying amount may not be recoverable. The Company does not have indefinite-lived intangible assets other than goodwill. Intangible assets are reported in “Other assets” on the Balance Sheet. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities in “Other liabilities” on the Balance Sheet. Associated legal expense is recorded in “Other non-interest expense” for the losses associated with the securities class action lawsuits, as described in “ Note 19. Commitments and Contingencies, ” on the Income Statement. Such liabilities and associated expenses are recorded when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company will also disclose a range of exposure to incremental loss when such amounts can be estimated and are reasonably possible to occur in future periods. In estimating the Company’s exposure to loss contingencies, if an amount within the estimated range of loss is the best estimate, that amount will be accrued. However, if there is no amount within the estimated range of loss that is the best estimate, the Company will accrue the minimum amount within the range, and disclose the amount up to the high end of the range as an exposure to incremental loss, if such amount is considered reasonably possible. Such estimates are based on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability and records an adjustment to its estimate in the period in which the adjustment is probable and an amount or range can be reasonably estimated. The determination of an expected contingent liability and associated litigation expense requires the Company to make assumptions related to the outcome of these matters. Due to the inherent uncertainties of loss contingencies, the Company’s estimates may be different than the actual outcomes. Legal fees, including legal fees associated with loss contingencies, are recognized as incurred and included in “Professional services” expense on the Income Statement. Stock-based Compensation Stock-based compensation includes expense primarily associated with restricted stock units ( RSUs) and performance-based restricted stock units (PBRSUs), as well as expense associated with stock issued related to acquisitions. Stock-based compensation expense is based on the grant date fair value of the award. The cost is generally recognized over the vesting period on a straight-line basis. Forfeitures are recognized as incurred. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers the available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. If the Company determines that it is able to realize its deferred tax assets in the future in excess of the net recorded amount, the Company decreases the deferred tax asset valuation allowance, which reduces the provision for income taxes. Uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company recognizes interest and penalties, if any, related to uncertain tax positions in “Income tax expense (benefit)” on the Income Statement. Net Income (Loss) Per Share Basic net income (loss) per share (Basic EPS) attributable to common stockholders is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share (Diluted EPS) is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period, adjusted for the effects of dilutive issuances of shares of common stock, which predominantly include incremental shares issued for outstanding RSUs, PBRSUs, and stock options. PBRSUs are included in dilutive shares to the extent the pre-established performance targets have been or are estimated to be satisfied as of the reporting date. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding RSUs, PBRSUs, and stock options are excluded from the computation of Diluted EPS in periods in which the effect would be antidilutive. For periods with more than one class of common shares, the Company computes Basic and Diluted EPS using the two-class method, which is an allocation of net income (loss) among the holders of each class of common shares. Beneficial Conversion Feature The Company accounts for the beneficial conversion feature (BCF) on its Series A Preferred Stock in accordance with ASC 470-20, Debt with Conversion and Other Options . The Company accretes the BCF discount from the date of issuance to the earliest conversion date, which was March 20, 2020. All of the BCF discount was accreted and recognized as a deemed dividend in “Accumulated deficit” on the Balance Sheet. Consolidation of Variable Interest Entities A VIE is a legal entity that has either a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors la |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition | Business Acquisition On February 1, 2021, the Company completed the Acquisition. Upon closing, LendingClub acquired all outstanding voting equity interests of Radius in exchange for total consideration as follows: Cash paid $ 140,256 Fair value of common stock issued (1) 40,808 Consideration related to share-based payments (2) 5,742 Total consideration paid $ 186,806 (1) Calculated using the closing stock price of $10.85 on January 29, 2021, the most recent trading day preceding the Acquisition, multiplied by 3,761,114 shares issued pursuant to the Plan of Merger. (2) In connection with the Acquisition, LendingClub agreed to convert equity awards held by Radius employees into cash and LendingClub awards pursuant to the Plan of Merger. The Acquisition was accounted for as a purchase business combination. Accordingly, the assets acquired and liabilities assumed are presented at their fair values determined as of the Acquisition date. Determining fair value of identifiable assets, particularly intangibles, loans (including PCD loans), and liabilities acquired and assumed based on DCF analysis or other valuation techniques requires management to make estimates that are highly subjective in nature based on available information. The fair value of acquired loans was based on a DCF methodology using contractual cash flows adjusted for key cash flow assumptions such as prepayment rate, default rate, loss severity rate, discount rate and market pricing. The following table presents an allocation of the total consideration paid to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed: Assets acquired: Cash and due from banks $ 18,184 Interest-bearing deposits in banks 650,052 Total cash and cash equivalents 668,236 Securities available for sale at fair value 259,037 Loans and leases held for investment 1,589,054 Allowance for loan and lease losses (12,440) Loans and leases held for investment, net 1,576,614 Property, equipment and software 1,926 Goodwill 75,717 Other assets 86,482 Total assets 2,668,012 Liabilities assumed: Non-interest bearing deposits 146,187 Interest-bearing deposits 1,862,272 Total deposits 2,008,459 Short-term borrowings 9,870 Advances from PPPLF 420,962 Other long-term debt 18,630 Other liabilities 23,285 Total liabilities 2,481,206 Total consideration paid $ 186,806 The purchase price exceeded the estimated fair value of the tangible and identifiable intangible assets acquired and liabilities assumed and, as a result of the purchase allocation, the Company recorded goodwill of $75.7 million, which is not deductible for tax purposes. The goodwill recognized is attributable primarily to strategic and financial benefits of the Acquisition, including increased resiliency with access to stable, low-cost deposit funding replacing higher-cost and more volatile third-party warehouse funding; increased and more stable revenue driven by increased net interest income from loans HFI; expense benefits by capturing the fees that were historically paid to the Company’s third-party issuing banks; and the ability to attract new members and deepen relationships with existing members through the addition of banking services. The carrying amounts of cash, AFS securities, short-term borrowings, advances from PPPLF, and certain other assets and liabilities were determined to be a reasonable estimate of the fair value of such items. The following is a description of the methods used to determine the fair values of significant assets and liabilities. Securities available for sale : The Company acquired a debt securities portfolio containing U.S. agency residential mortgage-backed securities, municipal securities, U.S. agency securities, commercial mortgage-backed securities and other asset-backed securities. The Acquisition date fair value of the securities was based on third-party dealer quotes which reflect exit prices pursuant to the guidance on fair value measurement. Loans and leases held for investment : Fair values for loans and leases were primarily based on a discounted cash flow methodology that considered contractual terms, credit loss expectations, market interest rates, and other market factors such as liquidity from the perspective of a market participant. Loan portfolios were pooled together according to similar characteristics such as product type, lien position, risk grade, credit deterioration status, FICO score, and collateral type. Loan pools were treated in the aggregate when applying various valuation techniques. The contractual terms, default rates, loss given default rates, loss severity and recovery lag, and prepayment rates were the key assumptions embedded into the estimated cash flow valuation. These assumptions were informed by internal data on loan characteristics, historical loss experience, and current and forecasted economic conditions. The discount rates used are based on current market rates for new originations of comparable loans and include adjustments for liquidity. All of the merged loans were marked to fair value as of the Acquisition date and, therefore, there was no carryover of the ACL that had previously been recorded by Radius. Immediately following the Acquisition, the Company recorded an ACL on non-PCD loans of $6.9 million through an increase to the provision for credit losses. The initial ACL for PCD loans of $12.4 million was recorded through an adjustment to the amortized cost basis of the loans. Core deposit intangible : This intangible asset represents the value of the relationships with certain deposit clients and is included in “Other assets” on the Balance Sheet. The fair value was estimated based on an after-tax cost savings method of the income approach. Under this method, fair value is equal to the present value of the after-tax cost savings or differential cash flows generated by the acquired deposit base. Cost savings is defined as the difference between the effective cost of funds on deposits and the cost of an equal amount of funds from an alternative source. Deposits were pooled by product type and channel. The discount rates used for Core Deposit Intangible (CDI) assets are based on current market participant rates. The CDI is being amortized over 10 years based upon the estimated economic benefits received. Other Investments: The fair value of an investment in a private entity that was sold after the Acquisition was determined based upon the price expected to be received in the subsequent sale. This investment was included in “Other assets” on the Balance Sheet. Interest-bearing deposits : In determining the fair value of certificates of deposit, the cash flows of the contractual interest payments during the specific period of the certificates of deposit and scheduled principal payout were discounted to present value at market-based interest rates. Subordinated debt : The fair value of subordinated debt was determined by using a DCF method using a market participant discount rate for similar instruments. Subordinated debt is included in “Other long-term debt” on the Balance Sheet. The Company incurred approximately $16 million of expenses, primarily included in “Professional services” on the Income Statement, in connection with the Acquisition. The table below presents certain unaudited pro forma financial information for illustrative purposes only, for the years ended December 31, 2021 and 2020, as if the Acquisition took place on January 1, 2020. The pro forma information combines the historical results of Radius with the Company’s, adjusting for the estimated impact of certain fair value adjustments for the respective periods. The pro forma information does not reflect changes to the provision for credit losses resulting from recording loan assets as fair value, cost savings, or business synergies. As a result, actual amounts would have differed from the unaudited pro forma information presented and the differences could be significant. Year Ended December 31, 2021 2020 Total net revenue $ 825,701 $ 392,377 Consolidated net income (loss) $ 11,644 $ (190,120) For the year ended December 31, 2021, total net revenue of $73.6 million from the Acquisition is included on the Income Statement. Summary of Reclassification Adjustments The classification of the items presented by the Company in its consolidated financial statements under GAAP has been adjusted to align with the presentation requirements under Article 9 of the SEC’s Regulation S-X for bank holding companies. The presentation shown below is reflective of what is used by the combined company under GAAP. As of December 31, 2020 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Assets Cash and cash equivalents $ 524,963 $ (524,963) $ — Cash and due from banks — 5,197 5,197 Interest bearing deposits in banks — 519,766 519,766 Total cash and cash equivalents — 524,963 524,963 Restricted cash 103,522 — 103,522 Securities available for sale at fair value 142,226 — 142,226 Loans held for investment at fair value 636,686 (636,686) — Loans held for investment by the Company at fair value 49,954 (49,954) — Loans held for sale by the Company at fair value 121,902 (121,902) — Loans held for sale at fair value — 121,902 121,902 Retail and certificate loans held for investment at fair value — 636,686 636,686 Other loans held for investment at fair value — 49,954 49,954 Accrued interest receivable 5,205 (5,205) — Property, equipment and software, net 96,641 — 96,641 Operating lease assets 74,037 (74,037) — Intangible assets, net 11,427 (11,427) — Other assets 96,730 90,669 187,399 Total assets $ 1,863,293 $ — $ 1,863,293 Liabilities and Equity Accounts payable $ 3,698 $ (3,698) $ — Accrued interest payable 4,572 (4,572) — Operating lease liabilities 94,538 (94,538) — Accrued expenses and other liabilities 101,457 (101,457) — Payable to investors 40,286 (40,286) — Credit facilities and securities sold under repurchase agreements 104,989 (104,989) — Short-term borrowings — 104,989 104,989 Retail notes, certificates and secured borrowings at fair value 636,774 — 636,774 Payable on Structured Program borrowings 152,808 — 152,808 Other liabilities — 244,551 244,551 Total liabilities 1,139,122 — 1,139,122 Equity Common stock 881 — 881 Additional paid-in capital 1,508,020 — 1,508,020 Accumulated deficit (786,214) — (786,214) Accumulated other comprehensive income 1,484 — 1,484 Total equity 724,171 — 724,171 Total liabilities and equity $ 1,863,293 $ — $ 1,863,293 Year Ended December 31, 2020 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Net Revenue Transaction fees $ 207,640 $ (207,640) $ — Interest income 209,694 (209,694) — Interest expense (141,503) 141,503 — Net fair value adjustments (117,247) 117,247 — Net interest income and fair value adjustments (49,056) 49,056 — Investor fees 111,864 (111,864) — Gain on sales of loans 30,812 (30,812) — Net investor revenue 93,620 (93,620) — Other revenue 13,442 (13,442) — Total net revenue 314,702 (314,702) — Non-interest income Marketplace revenue (1) — 245,314 245,314 Other non-interest income — 13,442 13,442 Total non-interest income — 258,756 258,756 Interest income Interest on loans held for sale — 72,876 72,876 Interest on retail and certificate loans held for investment at fair value — 115,952 115,952 Interest on other loans held for investment at fair value — 7,688 7,688 Interest on securities available for sale — 12,125 12,125 Other interest income — 1,053 1,053 Total interest income — 209,694 209,694 Interest expense Interest on short-term borrowings — 17,837 17,837 Interest on retail notes, certificates and secured borrowings — 115,952 115,952 Interest on Structured Program borrowings — 16,204 16,204 Interest on other long-term debt — 373 373 Total interest expense (2) — 150,366 150,366 Net interest income — 59,328 59,328 Total net revenue (3) — 318,084 318,084 Provision for credit losses (3) — 3,382 3,382 Operating expenses Sales and marketing 79,055 (79,055) — Origination and servicing 71,193 (71,193) — Engineering and product development 139,050 (139,050) — Other general and administrative 213,021 (213,021) — Total operating expenses 502,319 (502,319) — Non-interest expense Compensation and benefits — 252,517 252,517 Marketing — 51,518 51,518 Equipment and software — 26,842 26,842 Occupancy — 27,870 27,870 Depreciation and amortization — 54,030 54,030 Professional services — 41,780 41,780 Other non-interest expense — 47,762 47,762 Total non-interest expense — 502,319 502,319 Loss before income tax expense (187,617) — (187,617) Income tax benefit (79) — (79) Consolidated net loss $ (187,538) $ — $ (187,538) (1) See “ Note 3. Marketplace Revenue ” for additional detail. (2) The increase in total interest expense relates to valuation adjustments on Structured Program borrowings reclassified from net fair value adjustments to interest expense. (3) The increase in total net revenue from the historical presentation relates to credit valuation adjustments on AFS securities reclassified from net fair value adjustments to provision for credit losses. Year Ended December 31, 2019 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Net Revenue Transaction fees $ 598,760 $ (598,760) $ — Interest income 345,345 (345,345) — Interest expense (246,587) 246,587 — Net fair value adjustments (144,990) 144,990 — Net interest income and fair value adjustments (46,232) 46,232 — Investor fees 124,532 (124,532) — Gain on sales of loans 67,716 (67,716) — Net investor revenue 146,016 (146,016) — Other revenue 13,831 (13,831) — Total net revenue 758,607 (758,607) — Non-interest income Marketplace revenue (1) — 646,735 646,735 Other non-interest income — 13,831 13,831 Total non-interest income — 660,566 660,566 Interest income Interest on loans held for sale — 109,493 109,493 Interest on retail and certificate loans held for investment at fair value — 214,395 214,395 Interest on other loans held for investment at fair value — 1,104 1,104 Interest on securities available for sale — 14,351 14,351 Other interest income — 6,002 6,002 Total interest income — 345,345 345,345 Interest expense Interest on short-term borrowings — 26,826 26,826 Interest on retail notes, certificates and secured borrowings — 214,395 214,395 Interest on Structured Program borrowings — 5,070 5,070 Interest on other long-term debt — 1,013 1,013 Total interest expense (2) — 247,304 247,304 Net interest income — 98,041 98,041 Total net revenue — 758,607 758,607 Provision for credit losses — — — Operating expenses Sales and marketing 279,423 (279,423) — Origination and servicing 103,403 (103,403) — Engineering and product development 168,380 (168,380) — Other general and administrative 238,292 (238,292) — Total operating expenses 789,498 (789,498) — Non-interest expense Compensation and benefits — 333,628 333,628 Marketing — 235,337 235,337 Equipment and software — 24,927 24,927 Occupancy — 29,367 29,367 Depreciation and amortization — 59,152 59,152 Professional services — 43,010 43,010 Other non-interest expense — 64,077 64,077 Total non-interest expense — 789,498 789,498 Loss before income tax expense (30,891) — (30,891) Income tax benefit (201) — (201) Consolidated net loss (30,690) — (30,690) Less: Income attributable to noncontrolling interests 55 — 55 LendingClub net loss $ (30,745) $ — $ (30,745) (1) See “ Note 3. Marketplace Revenue ” for additional detail. (2) The increase in total interest expense relates to valuation adjustments on Structured Program borrowings reclassified from net fair value adjustments to interest expense. |
Marketplace Revenue
Marketplace Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Marketplace Revenue | Marketplace Revenue Marketplace revenue consists of (i) origination fees, (ii) servicing fees, (iii) gain (loss) on sales of loans and (iv) net fair value adjustments, as described below. Origination Fees: Origination fees are primarily fees earned related to originating and issuing unsecured personal loans that are held for sale. Servicing Fees: The Company receives servicing fees to compensate it for servicing loans on behalf of investors, including managing payments and collections from borrowers and payments to those investors. The amount of servicing fee revenue earned is predominantly affected by the servicing rates paid by investors and the outstanding principal balance of loans serviced for investors. Servicing fee revenue related to loans sold also includes the associated change in fair value of servicing assets. Gain (Loss) on Sales of Loans: In connection with loan sales the Company recognizes a gain or loss on the sale of loans based on the level to which the contractual servicing fee is above or below an estimated market rate of servicing. Additionally, the Company recognizes transaction costs, if any, as a loss on sale of loans. Net Fair Value Adjustments: The Company records fair value adjustments on loans that are recorded at fair value, including gains or losses from sale prices in excess of or less than the loan principal amount sold. The following table presents components of marketplace revenue for the years presented: Year Ended December 31, 2021 2020 2019 Origination fees $ 416,839 $ 207,640 $ 598,760 Servicing fees 87,639 111,864 124,532 Gain on sales of loans 70,116 30,812 67,716 Net fair value adjustments (1) 3,986 (105,002) (144,273) Total marketplace revenue $ 578,580 $ 245,314 $ 646,735 (1) Certain prior period valuation adjustments on AFS securities and Structured Program borrowings were reclassified from net fair value adjustments to provision for credit losses and interest expense, respectively, to conform to the current period presentation. Revenue from Contracts with Customers The Company’s revenue from contracts with customers includes (i) transaction fees received from issuing bank partners and (ii) referral fees from third-party companies. Transaction fees are presented as a component of “Origination fees” in “Marketplace revenue” and referral fees are presented as a component of “Other non-interest income” on the Income Statement. Transaction Fees : The Company has a single performance obligation to provide customers access to the Company’s platform. Transaction fees are considered revenue from contracts with customers, including issuing banks and education and patient service providers. The Company recognizes transaction fee revenue each time a loan is facilitated by the Company, who provides loan application processing and loan facilitation services, resulting in a loan issued by the customers. Transaction fees are based on the initial principal amount of the loans facilitated by the Company and paid by the issuing banks and education and patient service providers each time a loan is issued by the issuing banks. Transaction fees to which the Company expects to be entitled are variable consideration because loan volume originated over the contractual term is not known at the contract’s inception. Referral Fees : The Company is entitled to receive referral fees from third-party companies when customers referred by the Company consider or purchase products or services from such third-party companies. Referral contracts contain a single performance obligation. The Company recognizes referral fees for each distinct instance when the criteria for receiving the referral fee has been satisfied. Upon the Acquisition, the Company’s principal sources of revenue are marketplace revenue and interest income on loans, which are outside the scope of ASC 606, Revenue from Contracts with Customers . The remainder of the Company’s revenue is classified as non-interest income and is earned from a variety of sources, such as referral revenue and other non-interest income. The following table presents the Company’s revenue from contracts with customers, disaggregated by revenue source for services transferred over time, for the years presented: Year Ended December 31, 2021 2020 2019 Transaction fees $ 32,673 $ 207,640 $ 598,760 Referral fees 14,234 5,011 5,474 Total revenue from contracts with customers $ 46,907 $ 212,651 $ 604,234 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following table details the computation of the Company’s basic and diluted EPS of common stock and Series A Preferred Stock: Year Ended December 31, 2021 2020 2019 Common Stock Preferred Stock (1) Common Stock Preferred Stock (1) Common Stock Basic EPS: Allocation of undistributed LendingClub net income (loss) $ 18,456 $ 124 $ (154,664) $ (32,874) $ (30,745) Deemed dividend — — (50,204) 50,204 — Net income (loss) attributable to stockholders $ 18,456 $ 124 $ (204,868) $ 17,330 $ (30,745) Weighted-average common shares – Basic 97,486,754 653,118 77,934,302 12,505,393 87,278,596 Basic EPS $ 0.19 $ 0.19 $ (2.63) $ 1.39 $ (0.35) Diluted EPS: Allocation of undistributed LendingClub net income (loss) $ 18,580 $ — $ (154,664) $ (32,874) $ (30,745) Deemed dividend — — (50,204) 50,204 — Net income (loss) attributable to stockholders $ 18,580 $ — $ (204,868) $ 17,330 $ (30,745) Weighted-average common shares – Diluted 102,147,353 — 77,934,302 12,505,393 87,278,596 Diluted EPS $ 0.18 $ 0.00 $ (2.63) $ 1.39 $ (0.35) (1) Presented on an as-converted basis. In February 2020, the Company entered into an exchange agreement with its largest stockholder, Shanda Asset Management Holdings Limited and its affiliates (Shanda), pursuant to which, on March 20, 2020, Shanda exchanged all of 19,562,881 shares of LendingClub common stock, par value of $0.01 per share, held by it for (i) 195,628 newly issued shares of mandatorily convertible, non-voting, Series A Preferred Stock, par value of $0.01 per share, and (ii) a one-time cash payment of $50.2 million. The Series A Preferred Stock is considered a separate class of common shares for purposes of calculating EPS because it participates in earnings similar to common stock and does not receive any significant preferences over the common stock. As a result of the preferred stock outstanding during 2020 and the first quarter of 2021, Basic and Diluted EPS were computed using the two-class method, which is a net income (loss) allocation that determines EPS for each class of common stock according to dividends declared and participation rights in undistributed income (loss). Shanda sold the remainder of its preferred stock during the first quarter of 2021 and, therefore, there were no shares of preferred stock outstanding as of March 31, 2021. The following table summarizes the weighted-average common shares that were excluded from the Company’s diluted EPS computation because their effect would have been anti-dilutive for the periods presented: Year Ended December 31, 2021 2020 2019 Preferred stock — 12,505,393 — Stock options — 221,949 455,627 RSUs and PBRSUs — 299,747 59,812 Total — 13,027,089 515,439 |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale The amortized cost, gross unrealized gains and losses, credit valuation allowance, and fair value of AFS securities were as follows: December 31, 2021 Amortized Gross Gross Credit ValuationAllowance Fair U.S. agency residential mortgage-backed securities $ 125,985 $ — $ (2,286) $ — $ 123,699 Asset-backed senior securities 28,057 72 — — 28,129 U.S. agency securities 26,902 1 (731) — 26,172 Other asset-backed securities 26,112 151 (130) — 26,133 Commercial mortgage-backed securities 26,649 1 (552) — 26,098 CLUB Certificate asset-backed securities 15,049 3,236 — — 18,285 Asset-backed subordinated securities 4,119 7,643 — — 11,762 Municipal securities 3,297 — (45) — 3,252 Total securities available for sale (1)(2) $ 256,170 $ 11,104 $ (3,744) $ — $ 263,530 December 31, 2020 Amortized Gross Gross Credit ValuationAllowance Fair Asset-backed senior securities $ 75,332 $ 67 $ (27) $ — $ 75,372 CLUB Certificate asset-backed securities 54,525 576 (772) (4,190) 50,139 Asset-backed subordinated securities 29,107 2,128 (174) (14,546) 16,515 Other securities 200 — — — 200 Total securities available for sale (1)(2) $ 159,164 $ 2,771 $ (973) $ (18,736) $ 142,226 (1) As of December 31, 2021 and 2020, $13.3 million and $119.3 million, respectively, of the asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company’s obligations as a “sponsor” under the U.S. Risk Retention Rules. (2) As of December 31, 2021 and 2020, includes $236.8 million and $133.5 million, respectively, of securities pledged as collateral at fair value. The Company’s AFS portfolio includes debt securities primarily obtained in the first quarter of 2021 upon the Acquisition and asset-backed securities related to the Company’s Structured Program transactions. A summary of AFS securities with unrealized losses for which a credit valuation allowance has not been recorded aggregated by period of continuous unrealized loss, is as follows: Less than 12 months Total December 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized U.S. agency residential mortgage-backed securities $ 123,668 $ (2,286) $ — $ — $ 123,668 $ (2,286) U.S. agency securities 24,175 (731) — — 24,175 (731) Other asset-backed securities 13,224 (130) — — 13,224 (130) Commercial mortgage-backed securities 25,927 (552) — — 25,927 (552) Municipal securities 3,252 (45) — — 3,252 (45) Total securities with unrealized losses (1) $ 190,246 $ (3,744) $ — $ — $ 190,246 $ (3,744) Less than 12 months Total December 31, 2020 Fair Unrealized Fair Unrealized Fair Unrealized Asset-backed securities related to Structured Program transactions $ 26,678 $ (855) $ 6,052 $ (118) $ 32,730 $ (973) Total securities with unrealized losses (1) $ 26,678 $ (855) $ 6,052 $ (118) $ 32,730 $ (973) (1) The number of investment positions with unrealized losses at December 31, 2021 and 2020 totaled 145 and 55, respectively. During 2020, the Company recorded a credit valuation allowance on those securities where there was a deterioration in future estimated cash flows. The Company also recorded unrealized losses on securities with fair value price reductions due to higher liquidity premiums observed as a result of market dislocation related to COVID-19. The following tables present the activity in the credit valuation allowance for AFS securities, by major security type: Credit Valuation Allowance CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of December 31, 2020 $ (4,190) $ (14,546) $ (18,736) Reversal of credit loss expense 236 3,146 3,382 Reversal of allowance arising from PCD financial assets 3,954 11,400 15,354 Ending balance as of December 31, 2021 $ — $ — $ — Credit Valuation Allowance CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of January 1, 2020 $ — $ — $ — Provision for credit loss expense (236) (3,146) (3,382) Allowance arising from PCD financial assets (3,954) (11,400) (15,354) Ending balance as of December 31, 2020 $ (4,190) $ (14,546) $ (18,736) AFS securities purchased with credit deterioration were as follows: Year Ended December 31, 2020 Purchase price of PCD securities at acquisition $ 27,034 Credit valuation allowance on PCD securities at acquisition 15,354 Par value of acquired PCD securities at acquisition $ 42,388 There were no AFS securities purchased with credit deterioration during the year ended December 31, 2021. The contractual maturities of AFS securities were as follows: December 31, 2021 Amortized Cost Fair Value Weighted- average Yield (1) Due after 5 years through 10 years: U.S. agency residential mortgage-backed securities $ 710 $ 703 Other asset-backed securities 1,092 1,109 Commercial mortgage-backed securities 4,204 4,092 U.S. agency securities 1,998 1,992 Municipal securities 627 620 Total due after 5 years through 10 years 8,631 8,516 1.59 % Due after 10 years: U.S. agency residential mortgage-backed securities 125,275 122,996 Other asset-backed securities 25,020 25,024 Commercial mortgage-backed securities 22,445 22,006 U.S. agency securities 24,904 24,180 Municipal securities 2,670 2,632 Total due after 10 years 200,314 196,838 1.57 % Asset-backed securities related to Structured Program transactions 47,225 58,176 18.89 % Total securities available for sale $ 256,170 $ 263,530 4.76 % (1) The weighted-average yield is computed using the amortized cost at December 31, 2021. Proceeds and gross realized gains and losses from AFS securities were as follows: Year Ended December 31, 2021 2020 2019 Proceeds $ 106,192 $ 6,217 $ 12,548 Gross realized gains $ 708 $ 14 $ 9 Gross realized losses $ (952) $ (3) $ (1) |
Loans and Leases Held for Inves
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses | Loans and Leases Held for Investment, Net of Allowance for Loan and Lease LossesLendingClub records certain loans and leases HFI at amortized cost, whereas loans initially classified as HFS are recorded at fair value. Prior to the Acquisition and becoming a bank holding company, all loans were recorded at fair value. Therefore, the following disclosures apply to loans and leases HFI at amortized cost. Accrued interest receivable is excluded from the amortized cost basis of loans and leases HFI and is reported within “Other assets” on the Balance Sheet . Accrued interest within that caption related to loans and leases HFI was $15.6 million as of December 31, 2021. Loans and Leases Held for Investment The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable: December 31, 2021 Unsecured personal $ 1,804,578 Residential mortgages 151,362 Secured consumer 65,976 Total consumer loans held for investment 2,021,916 Equipment finance (1) 149,155 Commercial real estate 310,399 Commercial and industrial (2) 417,656 Total commercial loans and leases held for investment 877,210 Total loans and leases held for investment 2,899,126 Allowance for loan and lease losses (144,389) Loans and leases held for investment, net (3) $ 2,754,737 (1) Comprised of sales-type leases for equipment. See “ Note 18. Leases ” for additional information. (2) Includes $268.3 million of pledged loans under the Paycheck Protection Program (PPP). (3) As of December 31, 2021, the Company had $149.2 million in loans pledged as collateral under the FRB Discount Window. December 31, 2021 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 2,021,916 $ 128,812 $ 1,893,104 6.4 % Total commercial loans and leases held for investment (2) 877,210 15,577 861,633 1.8 % Total loans and leases held for investment (2) $ 2,899,126 $ 144,389 $ 2,754,737 5.0 % (1) Calculated as the ratio of allowance for loan and lease losses (ALLL) to loans and leases HFI. (2) Excluding the $268.3 million of PPP loans, the ALLL represented 2.6% of commercial loans and leases HFI and 5.5% of total loans and leases HFI. PPP loans are guaranteed by the Small Business Administration (SBA) and, therefore, the Company determined no ACL is required on these loans. The activity in the ACL by portfolio segment was as follows: Year Ended December 31, 2021 Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ — $ — $ — Credit loss expense for loans and leases held for investment (1) 136,789 4,162 140,951 Initial allowance for PCD loans acquired during the period (2) 603 11,837 12,440 Charge-offs (3) (8,789) (1,663) (10,452) Recoveries 209 1,241 1,450 Allowance for loan and lease losses, end of period $ 128,812 $ 15,577 $ 144,389 Reserve for unfunded lending commitments, beginning of period $ — $ — $ — Credit loss expense for unfunded lending commitments — 1,231 1,231 Reserve for unfunded lending commitments, end of period (4) $ — $ 1,231 $ 1,231 (1) Includes $6.9 million of credit loss expense for Radius loans at acquisition. (2) For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, an ACL of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million. (3) Unsecured personal loans are charged-off when a borrower is (i) contractually 120 days past due or (ii) two payments past due and has filed for bankruptcy or is deceased. (4) Relates to $110.8 million of unfunded commitments. Consumer Lending Credit Quality Indicators The Company evaluates the credit quality of its consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is based upon borrower payment activity relative to the contractual terms of the loan. The following table presents the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status and origination year: December 31, 2021 Term Loans and Leases by Origination Year 2021 2020 2019 2018 2017 Prior Within Revolving Period Total Unsecured personal Current $ 1,796,678 $ — $ — $ — $ — $ — $ — $ 1,796,678 30-59 days past due 3,624 — — — — — — 3,624 60-89 days past due 2,600 — — — — — — 2,600 90 or more days past due 1,676 — — — — — — 1,676 Total unsecured personal 1,804,578 — — — — — — 1,804,578 Residential mortgages Current 36,732 37,620 26,798 7,277 2,682 37,685 1,265 150,059 30-59 days past due — — — — — 142 — 142 60-89 days past due — — — — 92 — — 92 90 or more days past due — — — — 251 818 — 1,069 Total residential mortgages 36,732 37,620 26,798 7,277 3,025 38,645 1,265 151,362 Secured consumer Current 62,731 — — — — — 10 62,741 30-59 days past due 171 — — — — — — 171 60-89 days past due 53 — — — — — — 53 90 or more days past due — — — 2,629 382 — — 3,011 Total secured consumer 62,955 — — 2,629 382 — 10 65,976 Total consumer loans held for investment $ 1,904,265 $ 37,620 $ 26,798 $ 9,906 $ 3,407 $ 38,645 $ 1,275 $ 2,021,916 Commercial Lending Credit Quality Indicators The Company evaluates the credit quality of its commercial loan portfolio based on regulatory risk ratings. The Company categorizes loans and leases into risk ratings based on relevant information about the quality and realizable value of collateral, if any, and the ability of borrowers to service their debts, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on their associated credit risk and performs this analysis whenever credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. Risk rating classifications consist of the following: Pass – Loans and leases that the Company believes will fully repay in accordance with the contractual loan terms. Special Mention – Loans and leases with a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date. Substandard – Loans and leases that are inadequately protected by the current sound worth and paying capacity of the obligator or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the repayment and liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Normal payment from the borrower is in jeopardy, although loss of principal, while still possible, is not imminent. Doubtful – Loans and leases that have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. Loss – Loans and leases that are considered uncollectible and of little value. The following table presents the classes of financing receivables within the commercial portfolio segment by risk rating and origination year: December 31, 2021 Term Loans and Leases by Origination Year 2021 2020 2019 2018 2017 Prior Within Revolving Period Total Equipment finance Pass $ 52,440 $ 35,398 $ 26,918 $ 15,457 $ 6,184 $ 8,814 $ — $ 145,211 Special mention 1,531 — 1,810 — — — — 3,341 Substandard — — — 603 — — — 603 Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 53,971 35,398 28,728 16,060 6,184 8,814 — 149,155 Commercial real estate Pass 55,613 55,202 54,460 39,981 22,366 57,235 — 284,857 Special mention — 8,397 — 1,366 1,018 7,242 — 18,023 Substandard — — 277 2,496 — 4,179 — 6,952 Doubtful — — — — — — — — Loss — — — — — 567 — 567 Total commercial real estate 55,613 63,599 54,737 43,843 23,384 69,223 — 310,399 Commercial and industrial Pass 241,368 108,574 24,106 7,874 14,756 8,058 599 405,335 Special mention — — 2,207 463 1,467 40 — 4,177 Substandard — 1,122 862 1,858 1,525 1,571 87 7,025 Doubtful — — — — — — — — Loss — — — 52 4 1,063 — 1,119 Total commercial and industrial (1) 241,368 109,696 27,175 10,247 17,752 10,732 686 417,656 Total commercial loans and leases held for investment $ 350,952 $ 208,693 $ 110,640 $ 70,150 $ 47,320 $ 88,769 $ 686 $ 877,210 (1) Includes $268.3 million of PPP loans. The following table presents an analysis of the past due loans and leases HFI within the commercial portfolio segment (1) : December 31, 2021 30-59 60-89 90 or More Total Days Past Due Equipment finance $ — $ — $ — $ — Commercial real estate 104 — 609 713 Commercial and industrial (1) — — 1,410 1,410 Total commercial loans and leases held for investment $ 104 $ — $ 2,019 $ 2,123 (1) Past due PPP loans are excluded from the table. Nonaccrual Assets Nonaccrual loans and leases are those for which accrual of interest has been suspended. Loans and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection does not warrant further accrual. The following table presents nonaccrual loans and leases: December 31, 2021 Nonaccrual (1) Nonaccrual with no related ACL (2) Unsecured personal $ 1,676 $ — Residential mortgages 1,373 1,373 Secured consumer 3,011 3,011 Total nonaccrual consumer loans held for investment 6,060 4,384 Equipment finance 603 — Commercial real estate 989 989 Commercial and industrial 2,333 1,061 Total nonaccrual commercial loans and leases held for investment 3,925 2,050 Total nonaccrual loans and leases held for investment $ 9,985 $ 6,434 (1) There were no loans that were 90 days or more past due and accruing as of December 31, 2021. (2) Subset of total nonaccrual loans and leases. December 31, 2021 Nonaccrual Nonaccrual Ratios (1) Total nonaccrual consumer loans held for investment $ 6,060 0.3 % Total nonaccrual commercial loans and leases held for investment 3,925 0.4 % Total nonaccrual loans and leases held for investment (2)(3) $ 9,985 0.3 % (1) Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI. (2) The ALLL represented 1446% of nonaccrual loans and leases as of December 31, 2021. (3) Nonaccruing loans and leases represented 0.4% of total loans and leases HFI, excluding PPP loans. Collateral-Dependent Assets Certain loans on non-accrual status and certain TDR loans may be considered collateral-dependent loans if the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially through sale or operation of the collateral. Expected credit losses for the Company’s collateral-dependent loans are calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. Purchased Financial Assets with Credit Deterioration Acquired loans are recorded at their fair value, which may result in the recognition of a discount or premium. In addition, the purchase price of PCD loans is grossed-up upon acquisition for the initial estimate of ACL. Subsequent changes to the ACL are recorded as additions to or reversals of credit losses on the Income Statement. Acquired PCD loans were as follows: December 31, 2021 Purchase price $ 337,118 Allowance for credit losses (1) 30,378 Discount attributable to other factors 12,204 Par value $ 379,700 (1) For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, an ACL of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million. |
Securitizations and Variable In
Securitizations and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Securitizations and Variable Interest Entities | Securitizations and Variable Interest Entities For additional information regarding the consolidation of VIEs, s ee “ Note 1. Summary of Significant Accounting Policies .” VIE Assets and Liabilities The following tables provide the classifications of assets and liabilities on the Balance Sheet for its transactions with consolidated and unconsolidated VIEs. Additionally, the assets and liabilities in the tables below exclude intercompany balances that eliminate in consolidation: December 31, 2021 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 13,462 $ — $ 13,462 Securities available for sale at fair value — 58,177 58,177 Loans held for sale at fair value 41,734 — 41,734 Retail and certificate loans held for investment at fair value 10,281 — 10,281 Other loans held for investment at fair value 20,929 — 20,929 Other assets 584 17,156 17,740 Total assets $ 86,990 $ 75,333 $ 162,323 Liabilities Retail notes, certificates and secured borrowings at fair value $ 10,281 $ — $ 10,281 Payable on Structured Program borrowings 65,451 — 65,451 Other liabilities 467 — 467 Total liabilities 76,199 — 76,199 Total net assets $ 10,791 $ 75,333 $ 86,124 December 31, 2020 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 15,983 $ — $ 15,983 Securities available for sale at fair value — 142,026 142,026 Loans held for sale at fair value 98,190 — 98,190 Retail and certificate loans held for investment at fair value 52,620 — 52,620 Other loans held for investment at fair value 50,102 — 50,102 Other assets 1,270 32,865 34,135 Total assets $ 218,165 $ 174,891 $ 393,056 Liabilities Retail notes, certificates and secured borrowings at fair value $ 52,620 $ — $ 52,620 Payable on Structured Program borrowings 152,808 — 152,808 Other liabilities 729 — 729 Total liabilities 206,157 — 206,157 Total net assets $ 12,008 $ 174,891 $ 186,899 Unconsolidated VIEs The Company’s transactions with unconsolidated VIEs include Structured Program transactions. The Company has various forms of involvement with VIEs, including servicing of loans and holding senior or subordinated residual interests in the VIEs. The following tables present total unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary: December 31, 2021 Total VIE Assets Securities Available for Sale Other Assets Net Assets Carrying value $ 1,386,279 $ 58,177 $ 17,156 $ 75,333 Total exposure N/A $ 58,177 $ 17,156 $ 75,333 December 31, 2020 Total VIE Assets Securities Available for Sale Other Assets Net Assets Carrying value $ 3,233,416 $ 142,026 $ 32,865 $ 174,891 Total exposure N/A $ 142,026 $ 32,865 $ 174,891 N/A – Not applicable “Total VIE Assets” represents the remaining principal balance of loans held by unconsolidated VIEs. “Net Assets” continue to decline due to the ongoing paydown of loan balances from prior Structured Program transactions. “Securities Available for Sale” and “Other Assets” are the balances on the Balance Sheet related to its involvement with the unconsolidated VIEs. “Other Assets” primarily includes the Company’s servicing assets and servicing receivables. “Total Exposure” refers to the Company’s maximum exposure to loss from its involvement with unconsolidated VIEs. It represents estimated loss that would be incurred under severe, hypothetical circumstances, for which the Company believes the possibility is extremely remote, such as where the value of interests and any associated collateral declines to zero. Accordingly, this required disclosure is not an indication of expected losses. The following table summarizes activity related to the Unconsolidated Trusts and Certificate Program trusts, with the transfers accounted for as a sale on the Company’s consolidated financial statements: Year Ended December 31, 2021 2020 Unconsolidated Trusts Unconsolidated Certificate Unconsolidated Trusts Unconsolidated Certificate Principal derecognized from loans securitized or sold (1) $ — $ — $ 255,203 $ 971,738 Net gains (losses) recognized from loans securitized or sold $ — $ — $ (20) $ 7,897 Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement (2) $ — $ — $ 12,707 $ 35,836 Cash proceeds from loans securitized or sold $ — $ — $ 237,764 $ 598,694 Cash proceeds from servicing and other administrative fees on loans securitized or sold $ 9,141 $ 14,445 $ 17,684 $ 26,822 Cash proceeds for interest received on senior securities and subordinated securities $ 2,978 $ 6,158 $ 4,559 $ 8,251 (1) Includes non-cash purchase and sale of loans requested by investors to facilitate a Structured Program transaction during the third quarter of 2020. (2) For Structured Program transactions, the Company retained asset-backed senior securities of $26.3 million, CLUB Certificate asset-backed securities of $18.3 million, and asset-backed subordinated securities of $4.0 million for the year ended December 31, 2020. The Company and other investors in the subordinated interests issued by trusts and Certificate Program trusts have rights to cash flows only after the investors holding the senior securities issued by the trusts have first received their contractual cash flows. The investors and the trusts have no direct recourse to the Company’s assets, and holders of the securities issued by the trusts can look only to the assets of the securitization trusts that issued their securities for payment. The beneficial interests held by the Company are subject principally to the credit and prepayment risk stemming from the underlying unsecured personal loans. Off-Balance Sheet Loans Off-balance sheet loans pursuant to unconsolidated VIE’s primarily relate to Structured Program transactions for which the Company has some form of continuing involvement, including as servicer. As of December 31, 2021, the aggregate unpaid principal balance of the off-balance sheet loans related to Structured Program transactions was $1.3 billion, of which $35.0 million was attributable to off-balance sheet loans that were 31 days or more past due. As of December 31, 2020, the aggregate unpaid principal balance of the off-balance sheet loans related to Structured Program transactions was $3.2 billion, of which $94.8 million was attributable to off-balance sheet loans that were 31 days or more past due. For such loans, the Company would only experience a loss if it was required to repurchase a loan due to a breach in representations and warranties associated with its loan sale or servicing contracts. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities For a description of the fair value hierarchy and the Company’s fair value methodologies, see “ Note 1. Summary of Significant Accounting Policies. ” The Company records certain assets and liabilities at fair value as listed in the tables below. Financial Instruments, Assets and Liabilities Recorded at Fair Value The following tables present the fair value hierarchy for assets and liabilities measured at fair value: December 31, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 142,370 $ 142,370 Retail and certificate loans held for investment at fair value — — 229,719 229,719 Other loans held for investment at fair value — — 21,240 21,240 Securities available for sale: U.S. agency residential mortgage-backed securities — 123,699 — 123,699 Asset-backed senior securities and subordinated securities — 28,129 11,762 39,891 U.S. agency securities — 26,172 — 26,172 Other asset-backed securities — 26,133 — 26,133 Commercial mortgage-backed securities — 26,098 — 26,098 CLUB Certificate asset-backed securities — — 18,285 18,285 Municipal securities — 3,252 — 3,252 Total securities available for sale — 233,483 30,047 263,530 Servicing assets — — 67,726 67,726 Other assets — 2,812 3,312 6,124 Total assets $ — $ 236,295 $ 494,414 $ 730,709 Liabilities: Retail notes, certificates and secured borrowings $ — $ — $ 229,719 $ 229,719 Payable on Structured Program borrowings — — 65,451 65,451 Other liabilities — — 12,911 12,911 Total liabilities $ — $ — $ 308,081 $ 308,081 December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Loans held for sale at fair value $ — $ — $ 121,902 $ 121,902 Retail and certificate loans held for investment at fair value — — 636,686 636,686 Other loans held for investment at fair value — — 49,954 49,954 Securities available for sale: Asset-backed senior securities and subordinated securities — 75,372 16,515 91,887 CLUB Certificate asset-backed securities — — 50,139 50,139 Other securities — 200 — 200 Total securities available for sale — 75,572 66,654 142,226 Servicing assets — — 56,347 56,347 Total assets $ — $ 75,572 $ 931,543 $ 1,007,115 Liabilities: Retail notes, certificates and secured borrowings $ — $ — $ 636,774 $ 636,774 Payable on Structured Program borrowings — — 152,808 152,808 Other liabilities — — 12,270 12,270 Total liabilities $ — $ — $ 801,852 $ 801,852 Financial instruments are categorized in the valuation hierarchy based on the significance of observable or unobservable factors in the overall fair value measurement. For the financial instruments listed in the tables above that do not trade in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of these assets and liabilities. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, changes in fair value for assets and liabilities within the Level 2 or Level 3 categories may include changes in fair value that were attributable to observable and unobservable inputs, respectively. The Company primarily uses a DCF model to estimate the fair value of Level 3 instruments based on the present value of estimated future cash flows. This model uses inputs that are inherently judgmental and reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. Due to changes in the availability of market observable inputs, the Company transferred $517 thousand of asset-backed securities related to Structured Program transactions out of Level 3 during the year ended December 31, 2020. The Company did not transfer any other assets or liabilities in or out of Level 3 during the year ended December 31, 2021. Loans Held for Sale at Fair Value As of December 31, 2021, the majority of loans HFS were sold shortly after origination and at committed prices. Therefore, the Company is generally not exposed to fair value fluctuations as a result of adverse changes in key assumptions. Significant Recurring Level 3 Fair Value Input Sensitivity The sensitivity of loans held for sale at fair value to adverse changes in key assumptions are as follows: December 31, 2021 December 31, 2020 Loans held for sale at fair value $ 142,370 $ 121,902 Expected weighted-average life (in years) 1.3 1.1 Discount rates 100 basis point increase $ (1,540) $ (1,151) 200 basis point increase $ (3,055) $ (2,282) Expected credit loss rates on underlying loans 10% adverse change $ (608) $ (1,099) 20% adverse change $ (1,236) $ (2,220) Expected prepayment rates 10% adverse change $ (1,450) $ (273) 20% adverse change $ (2,997) $ (556) Fair Value Reconciliation The following tables present additional information about Level 3 loans held for sale at fair value on a recurring basis: Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2019 $ 747,394 $ (25,039) $ 722,355 Purchases 1,568,844 (6) 1,568,838 Transfers to loans held for investment (41,431) — (41,431) Sales (1,907,446) 87,723 (1,819,723) Principal payments and retirements (207,483) — (207,483) Charge-offs, net of recoveries (27,278) 25,627 (1,651) Change in fair value recorded in earnings — (99,003) (99,003) Balance at December 31, 2020 $ 132,600 $ (10,698) $ 121,902 Originations and purchases 7,507,695 (1,629) 7,506,066 Sales (7,386,633) 5,124 (7,381,509) Principal payments and retirements (98,530) — (98,530) Charge-offs, net of recoveries (7,939) 3,441 (4,498) Change in fair value recorded in earnings — (1,061) (1,061) Balance at December 31, 2021 $ 147,193 $ (4,823) $ 142,370 Retail and Certificate Loans and Related Notes, Certificates and Secured Borrowings The Company does not assume principal or interest rate risk on loans that were funded by its member payment dependent self-directed retail program (Retail Program) because loan balances, interest rates and maturities are matched and offset by an equal balance of notes with the exact same interest rates and maturities. At December 31, 2021 and 2020, the DCF methodology used to estimate the retail note, certificate and secured borrowings’ fair values used the same projected net cash flows as their related loans. Therefore, the fair value adjustments for retail loans held for investment were largely offset by the corresponding fair value adjustments due to the payment dependent design of the retail notes, certificates and secured borrowings. Servicing Assets Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for servicing assets relating to loans sold to investors: December 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rates 7.5 % 16.4 % 10.0 % 4.8 % 16.4 % 9.9 % Net cumulative expected loss rates (1) 2.4 % 26.4 % 10.2 % 4.5 % 26.3 % 12.5 % Cumulative expected prepayment rates (1) 32.1 % 45.9 % 38.4 % 27.0 % 38.9 % 31.2 % Total market servicing rates (% per annum on outstanding principal balance) (2) 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % (1) Expressed as a percentage of the original principal balance of the loan. (2) Includes collection fees estimated to be paid to a hypothetical third-party servicer. Significant Recurring Level 3 Fair Value Input Sensitivity The Company’s selection of the most representative market servicing rates for servicing assets is inherently judgmental. The Company reviews third-party servicing rates for its loans, loans in similar credit sectors, and market servicing benchmarking analyses provided by third-party valuation firms, when available. The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions: December 31, 2021 December 31, 2020 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Servicing rate increase by 0.10% $ (9,495) $ (7,379) Servicing rate decrease by 0.10% $ 9,495 $ 7,379 The following table presents the fair value of servicing assets to adverse changes in key assumptions: December 31, 2021 December 31, 2020 Fair value of Servicing Assets $ 67,726 $ 56,347 Discount rates 100 basis point increase $ (558) $ (455) 200 basis point increase $ (1,115) $ (911) Expected loss rates 10% adverse change $ (693) $ (346) 20% adverse change $ (1,386) $ (691) Expected prepayment rates 10% adverse change $ (2,401) $ (1,596) 20% adverse change $ (4,802) $ (3,192) Fair Value Reconciliation The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis: Fair value at December 31, 2019 $ 89,680 Issuances (1) 33,990 Change in fair value, included in Marketplace Revenue (58,730) Other net changes included in Deferred Revenue (8,593) Fair value at December 31, 2020 $ 56,347 Issuances (1) 69,075 Change in fair value, included in Marketplace Revenue (56,561) Other net changes included in Deferred Revenue (1,135) Fair value at December 31, 2021 $ 67,726 (1) Represents the gains or losses on sales of the related loans. Financial Instruments, Assets, and Liabilities Not Recorded at Fair Value The following tables present the fair value hierarchy for financial instruments, assets, and liabilities not recorded at fair value: December 31, 2021 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale $ 248,878 $ — $ — $ 251,101 $ 251,101 Loans and leases held for investment, net 2,754,737 — — 2,964,691 2,964,691 Other assets 18,274 — 15,630 2,644 18,274 Total assets $ 3,021,889 $ — $ 15,630 $ 3,218,436 $ 3,234,066 Liabilities: Deposits (1) $ 68,405 $ — $ — $ 68,405 $ 68,405 Short-term borrowings 27,780 — 17,595 10,185 27,780 Advances from PPPLF 271,933 — — 271,933 271,933 Other long-term debt 15,455 — — 15,455 15,455 Other liabilities 51,655 — 22,187 29,468 51,655 Total liabilities $ 435,228 $ — $ 39,782 $ 395,446 $ 435,228 (1) Excludes deposit liabilities with no defined or contractual maturities. December 31, 2020 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Total cash and cash equivalents (1) $ 524,963 $ — $ 524,963 $ — $ 524,963 Restricted cash (1) 103,522 — 103,522 — 103,522 Other assets 914 — 914 — 914 Total assets $ 629,399 $ — $ 629,399 $ — $ 629,399 Liabilities: Short-term borrowings $ 104,989 $ — $ 65,121 $ 39,868 $ 104,989 Other liabilities 57,536 — 43,984 13,552 57,536 Total liabilities $ 162,525 $ — $ 109,105 $ 53,420 $ 162,525 (1) Carrying amount approximates fair value due to the short maturity of these financial instruments. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, Net | Property, Equipment and Software, Net Property, equipment and software, net, consist of the following: December 31, 2021 2020 Internally developed software (1) $ 96,171 $ 101,953 Leasehold improvements 36,556 35,140 Computer equipment 29,598 27,030 Purchased software 22,403 19,004 Furniture and fixtures 8,346 8,203 Construction in progress 3,319 2,761 Total property, equipment and software 196,393 194,091 Accumulated depreciation and amortization (98,397) (97,450) Total property, equipment and software, net $ 97,996 $ 96,641 (1) Includes $14.7 million and $13.9 million of software development in progress as of December 31, 2021 and 2020, respectively. Depreciation and amortization expense on property, equipment and software was $38.2 million, $45.2 million and $51.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company recorded impairment expense on its leasehold improvements and furniture and fixtures of $1.9 million for the year ended December 31, 2020. No impairment expense was recorded in 2021 and 2019. The Company recorded impairment expense on its internally developed software of $0.8 million, $5.7 million and $3.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company records the above expenses in “Depreciation and amortization” expense on the Income Statement. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill In connection with the Acquisition in the first quarter of 2021, the Company recognized Goodwill of $75.7 million, which is fully allocated to the LC Bank operating segment. Goodwill is not amortized, but will be subject to annual impairment tests. For additional detail, see “ Note 1. Summary of Significant Accounting Policies. ” Intangible Assets Intangible assets consist of customer relationships. Intangible assets, net of accumulated amortization, are included in “Other assets” on the Balance Sheet. The gross and net carrying values and accumulated amortization were as follows: December 31, 2021 2020 Gross Carrying Value $ 54,500 $ 39,500 Accumulated Amortization (33,319) (28,073) Net Carrying Value $ 21,181 $ 11,427 The customer relationship intangible assets are amortized on an accelerated basis from ten The expected future amortization expense for intangible assets as of December 31, 2021, is as follows: 2022 $ 4,847 2023 4,198 2024 3,549 2025 2,901 2026 2,252 Thereafter 3,434 Total $ 21,181 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: December 31, 2021 2020 Operating lease assets $ 77,316 $ 74,037 Servicing assets (1) 70,370 56,347 Nonmarketable equity investments 31,726 8,275 Intangible assets, net (2) 21,181 11,427 Other 101,953 37,313 Total other assets $ 302,546 $ 187,399 (1) Loans underlying servicing assets had a total outstanding principal balance of $10.3 billion and $10.1 billion as of December 31, 2021 and 2020, respectively. (2) See “ Note 10. Goodwill and Intangible Assets ” for additional detail. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Deposits | Deposits Deposits consist of the following: December 31, Interest-bearing deposits: Checking accounts $ 1,993,809 Savings and money market accounts 856,989 Certificates of deposit 68,405 Total $ 2,919,203 Noninterest-bearing deposits 216,585 Total deposits $ 3,135,788 Total certificates of deposit at December 31, 2021 are scheduled to mature as follows: 2022 $ 53,740 2023 13,579 2024 462 2025 178 2026 446 Total certificates of deposit $ 68,405 The following table presents the amount of certificates of deposit with denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand, segregated by time remaining until maturity, as of December 31, 2021: Three months or less Over 3 months through Over 6 months through Over Total Certificates of deposit $ 12,338 $ 806 $ 250 $ 588 $ 13,982 |
Short-term Borrowings and Long-
Short-term Borrowings and Long-term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Long-term Debt | Short-term Borrowings and Long-term Debt Short-term Borrowings: Repurchase Agreements The Company entered into repurchase agreements pursuant to which the Company sold securities (subject to an obligation to repurchase such securities at a specified future date and price) in exchange for cash. As of December 31, 2021 and 2020, the Company had $27.8 million and $105.0 million in aggregate debt outstanding under its repurchase agreements, respectively, which is amortized over time through regular principal and interest payments collected from the pledged securities. At December 31, 2021, a majority of the Company’s repurchase agreements have contractual repurchase dates ranging from September 2022 to March 2028. These contractual repurchase dates correspond to either a set repurchase schedule or to the maturity dates of the underlying securities, which have a remaining weighted-average estimated life of less than one year. At December 31, 2021 and 2020, the repurchase agreements bore interest rates ranging from 3.12% to 6.72% and 3.05% to 4.00%, respectively, which are either fixed or based on a benchmark of the weighted-average interest rate of the securities sold plus a spread. Underlying securities retained and pledged as collateral under repurchase agreements were $50.5 million and $133.5 million at December 31, 2021 and 2020, respectively. Long-term Debt: Advances from PPPLF As of December 31, 2021, outstanding PPPLF borrowings were $271.9 million and are collateralized by SBA PPP loans originated by the Company. The maturity date of the PPPLF borrowings matches the maturity date of the SBA PPP loans. When loans are forgiven by the SBA, the corresponding PPPLF advance is paid by the Company. The interest rate on the PPPLF borrowings is fixed at 0.35%. Retail Notes, Certificates, and Secured Borrowings The Company issued Retail Notes and LC Trust I issued certificates as a means to allow investors to invest in the corresponding loans. Investors were able to purchase Retail Notes, where the cash flows to investors were dependent upon principal and interest payments made by borrowers of the underlying unsecured personal loans. As of December 31, 2020, LendingClub ceased offering and selling Retail Notes. The total balance of outstanding Retail Notes will continue to decline as underlying borrower payments are made. The Company does not assume principal or interest rate risk on loans that were funded by Retail Notes because loan balances, interest rates and maturities were matched and offset by an equal balance of notes with the exact same interest rates and maturities. The following table provides the balances of retail notes, certificates and secured borrowings at fair value as of the periods indicated: December 31, 2021 2020 Retail notes $ 219,435 $ 583,219 Certificates 10,281 52,620 Secured borrowings 3 935 Total retail notes, certificates and secured borrowings $ 229,719 $ 636,774 Payable on Structured Program Borrowings As of December 31, 2021 and 2020, the certificate participations and securities of certain consolidated VIEs held by third-party investors of $65.5 million and $152.8 million, respectively, are included in “Payable on Structured Program borrowings” on the Balance Sheet and were secured by “Other loans held for investment at fair value” and “Loans held for sale” of $62.7 million and $148.3 million and restricted cash of $11.2 million and $13.5 million, respectively. Other Long-term Debt |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities consist of the following: December 31, 2021 2020 Accounts payable and accrued expenses $ 100,972 $ 46,885 Operating lease liabilities 91,588 94,538 Payable to investors 22,187 40,286 Other 89,204 62,842 Total other liabilities $ 303,951 $ 244,551 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) represents other cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) were as follows: Year Ended December 31, 2021 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ 5,562 $ — $ 5,562 Other comprehensive income (loss) $ 5,562 $ — $ 5,562 Year Ended December 31, 2020 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ 2,044 $ (5) $ 2,049 Other comprehensive income (loss) $ 2,044 $ (5) $ 2,049 Year Ended December 31, 2019 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ (526) $ 216 $ (742) Other comprehensive income (loss) $ (526) $ 216 $ (742) Accumulated other comprehensive income (loss) balances were as follows: Total Balance at December 31, 2019 $ (565) Change in net unrealized gain (loss) on securities available for sale 2,049 Balance at December 31, 2020 $ 1,484 Change in net unrealized gain (loss) on securities available for sale 5,562 Balance at December 31, 2021 $ 7,046 |
Employee Incentive Plans
Employee Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Employee Incentive Plans | Employee Incentive PlansThe Company’s equity incentive plans provide for granting awards, including RSUs, PBRSUs, cash awards and stock options to employees, officers and directors. Common Stock Reserved for Future Issuance Shares of common stock reserved for future issuance was as follows: December 31, 2021 2020 Available for future RSU, PBRSU and stock option grants 15,172,055 12,552,761 Unvested RSUs, PBRSUs and stock options outstanding 13,029,414 14,631,526 Available for ESPP 5,161,860 4,134,033 Total reserved for future issuance 33,363,329 31,318,320 Stock-based Compensation Stock-based compensation expense was as follows for the periods presented: Year Ended December 31, 2021 2020 2019 RSUs and PBRSUs $ 66,552 $ 60,745 $ 70,772 Stock options 599 788 2,383 ESPP (1) — — 484 Total stock-based compensation expense $ 67,151 $ 61,533 $ 73,639 (1) Purchases through the Company’s employee stock purchase plan (ESPP) were suspended effective upon the completion of the offering period on May 10, 2019. The Company capitalized $4.4 million, $5.1 million and $6.3 million of stock-based compensation expense associated with developing software for internal use during the years ended December 31, 2021, 2020 and 2019, respectively. Restricted Stock Units The following table summarizes the activities for the Company’s RSUs: Number Weighted- Unvested at December 31, 2020 11,395,112 $ 11.26 Granted 5,792,679 $ 14.39 Vested (5,033,976) $ 11.98 Forfeited/expired (2,450,064) $ 12.58 Unvested at December 31, 2021 9,703,751 $ 12.44 During the year ended December 31, 2021, the Company granted 5,792,679 RSUs with an aggregate fair value of $83.4 million. As of December 31, 2021, there was $109.7 million of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over the next 2.1 years. Performance-based Restricted Stock Units PBRSUs are restricted stock unit awards that are earned and eligible for vesting (if applicable) based upon the achievement of certain pre-established performance metrics over a specific performance period. The Company’s PBRSU awards have a separate market-based component and/or a performance-based component. Certain of the Company’s PBRSU awards have additional time-based vesting for any earned shares. With respect to PBRSU awards with market-based metrics, the compensation expense of the award is fixed at the time of grant (incorporating the probability of achieving the market-based metrics) and expensed over the performance and vesting period. With respect to PBRSU awards with performance-based metrics, the compensation expense of the award is set at the time of grant (assuming a target level of achievement), adjusted for actual performance during the performance period and expensed over the performance and vesting period. The following table summarizes the activities for the Company’s PBRSUs: Number Weighted- Unvested at December 31, 2020 1,441,311 $ 5.31 Granted 568,285 $ 22.54 Vested (79,604) $ 22.59 Forfeited/expired (158,123) $ 12.41 Unvested at December 31, 2021 1,771,869 $ 9.72 For the years ended December 31, 2021, 2020 and 2019, the Company recognized $7.0 million, $2.8 million and $3.9 million in stock-based compensation expense related to PBRSUs, respectively. As of December 31, 2021, there was $10.5 million of unrecognized compensation cost related to unvested PBRSUs, which is expected to be recognized over the next 1.5 years. Stock Options The following table summarizes the activities for the Company’s stock options: Number of Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) Outstanding at December 31, 2020 1,795,116 $ 29.99 Granted 188,626 $ 5.32 Exercised (264,826) $ 9.22 Forfeited/Expired (165,109) $ 15.12 Outstanding at December 31, 2021 1,553,807 $ 32.12 3.06 $ 6,913 Exercisable at December 31, 2021 1,511,469 $ 32.87 2.96 $ 6,115 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company’s closing stock price of $24.18 as reported on the New York Stock Exchange on December 31, 2021. As part of the Acquisition, the Company granted service-based stock options to purchase 188,626 shares of common stock with a weighted-average exercise price of $5.32 per option share, a weighted-average grant date fair value of $6.25 per option share and an aggregate estimated fair value of $1.2 million. The aggregate intrinsic value of options exercised was $5.1 million, $1.8 million and $5.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. The total fair value of stock options vested for the years ended December 31, 2021, 2020 and 2019 was $0.3 million, $1.0 million and $2.8 million, respectively. As of December 31, 2021, there was $38.0 thousand in unrecognized compensation cost related to outstanding stock options. There were no stock options granted during the years ended December 31, 2020 and 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit consisted of the following for the periods shown below: Year Ended December 31, 2021 2020 2019 Current: Federal $ — $ (1) $ (141) State 3,541 (78) (60) Total current tax expense (benefit) $ 3,541 $ (79) $ (201) Deferred: Federal $ (2,066) $ — $ — State (1,611) — — Total deferred benefit $ (3,677) $ — $ — Income tax benefit $ (136) $ (79) $ (201) Income tax benefit for the year ended December 31, 2021 was primarily related to a tax benefit associated with the Acquisition, partially offset by income tax expense for state jurisdictions that limit net operating loss utilization. Income tax benefit for the year ended December 31, 2020 was primarily attributable to current state income taxes. Income tax benefit for the year ended December 31, 2019 was primarily attributable to the tax effects of unrealized gains recorded to other comprehensive income associated with the Company’s available for sale portfolio. A reconciliation of the income taxes expected at the statutory federal income tax rate and income tax benefit is as follows: Year Ended December 31, 2021 2020 2019 Tax at federal statutory rate $ 3,873 $ (39,399) $ (6,499) State tax, net of federal tax benefit 1,524 (81) (60) Stock-based compensation expense (11,839) 8,044 4,773 Research and development tax credits (4,354) (994) (2,336) Change in valuation allowance 7,867 29,728 (802) Change in unrecognized tax benefit 2,177 497 1,168 Non-deductible expenses 742 2,278 3,250 Other (126) (152) 305 Income tax benefit $ (136) $ (79) $ (201) The significant components of the Company’s deferred tax assets and liabilities were: December 31, 2021 2020 Deferred tax assets: Net operating loss (NOL) carryforwards $ 144,510 $ 163,381 Allowance for loan and lease losses 41,170 — Stock-based compensation 11,721 10,218 Reserves and accruals 13,051 15,652 Operating lease liabilities 25,807 28,032 Goodwill 14,737 17,375 Intangible assets — 3,151 Tax credit carryforwards 19,339 18,215 Other 3,492 868 Total deferred tax assets 273,827 256,892 Valuation allowance (223,367) (211,228) Deferred tax assets – net of valuation allowance $ 50,460 $ 45,664 Deferred tax liabilities: Internally developed software $ (17,431) $ (16,956) Servicing fees (2,452) (2,780) Operating lease assets (21,614) (22,048) Leases (6,961) — Intangible assets (440) — Change in tax method — (1,769) Other (1,562) (2,111) Total deferred tax liabilities $ (50,460) $ (45,664) Deferred tax asset (liability) – net $ — $ — The Company continues to recognize a full valuation allowance against net deferred tax assets. This determination was based on the assessment of the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. As of December 31, 2021 and 2020, the valuation allowance was $223.4 million and $211.2 million, respectively. As of December 31, 2021, the Company had federal and state NOL carryforwards (prior to the application of statutory tax rates) of approximately $464.8 million and $620.0 million. Federal and state NOLs of approximately $211.6 million and $36.8 million carry forward indefinitely and the remainder start expiring in 2026 and 2025, respectively. Additionally, as of December 31, 2021, the Company had federal and state research and development credit carryforwards of $21.7 million and $15.8 million, respectively. The federal research credit carryforwards will expire beginning in 2026 and the state research credits may be carried forward indefinitely. In general, a corporation’s ability to utilize its NOL and research and development credit carryforwards may be substantially limited due to the ownership change limitations as required by Section 382 and 383 of the Internal Revenue Code of 1986, as amended, as well as similar state provisions. The federal and state Section 382 and 383 limitations may limit the use of a portion of the Company’s domestic NOL and tax credit carryforwards. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities. A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows: Year Ended December 31, 2021 2020 2019 Beginning balance $ 17,626 $ 15,998 $ 13,377 Gross increase for tax positions related to prior years 1,272 — — Gross increase for tax positions related to the current year 3,614 1,628 2,621 Ending balance $ 22,512 $ 17,626 $ 15,998 If the unrecognized tax benefit as of December 31, 2021 is recognized, there will be no effect on the Company’s effective tax rate as the tax benefit would increase a deferred tax asset, which is currently offset with a full valuation allowance. As of December 31, 2021, the Company had no accrued interest and penalties related to unrecognized tax benefits. The Company does not expect any significant increases or decreases to its unrecognized benefits within the next twelve months. The Company files income tax returns in the United States and various state jurisdictions. As of December 31, 2021, the Company’s federal tax returns for 2017 and earlier, and the state tax returns for 2016 and earlier were no longer subject to examination by the taxing authorities. However, tax periods closed in a prior period may be subject to audit and re-examination by tax authorities for which tax carryforwards are utilized in subsequent years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessor Arrangements The Company has lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the year ended December 31, 2021, interest earned on Equipment Finance was $10.8 million and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. The components of Equipment Finance assets are as follows: December 31, 2021 Lease receivables $ 122,927 Unguaranteed residual asset values 36,837 Unearned income (10,989) Deferred fees 380 Total $ 149,155 Future minimum lease payments based on maturity of the Company’s lessor arrangements as of December 31, 2021 were as follows: 2022 $ 43,907 2023 35,803 2024 27,374 2025 16,235 2026 9,084 Thereafter 4,382 Total lease payments $ 136,785 Discount effect (13,858) Present value of future minimum lease payments $ 122,927 Lessee Arrangements The Company has operating leases for its headquarters in San Francisco, California, as well as additional office space in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of December 31, 2021, the lease agreements have remaining lease terms ranging from approximately one year to nine years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. In addition, the Company is the sublessor of a portion of its office space in San Francisco, with remaining lease terms of less than one year. As of December 31, 2021, the Company pledged $0.9 million of cash and $5.5 million in letters of credit as security deposits in connection with its lease agreements. The Company reviewed operating lease right-of-use (ROU) assets for impairment. For the year ended December 31, 2021, the Company recognized an impairment expense of $1.0 million on operating lease assets, included in “Occupancy expense.” For the year ended December 31, 2020, the Company recognized an impairment expense of $3.6 million on operating lease assets. Balance sheet information related to leases was as follows: ROU Assets and Lease Liabilities Balance Sheet Classification December 31, 2021 December 31, 2020 Operating lease assets Other assets $ 77,316 $ 74,037 Operating lease liabilities (1) Other liabilities $ 91,588 $ 94,538 (1) The difference between operating lease assets and operating lease liabilities is the unamortized balance of deferred rent. Components of net lease costs were as follows: Year Ended December 31, Net Lease Costs Income Statement Classification 2021 2020 2019 Operating lease costs (1) Occupancy $ (18,773) $ (17,346) $ (19,502) Sublease revenue Other non-interest income 6,149 6,146 4,637 Net lease costs $ (12,624) $ (11,200) $ (14,865) (1) Includes variable lease costs of $1.3 million, $1.5 million and $1.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Supplemental cash flow information related to the Company’s operating leases was as follows: Year Ended December 31, 2021 2020 2019 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ 12,914 $ 84 $ 15,277 (1) Represents non-cash activity and, accordingly, is not reflected on the Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of December 31, 2021 were as follows: Operating Lease Sublease Net 2022 $ 15,947 $ (2,918) $ 13,029 2023 12,465 — 12,465 2024 12,810 — 12,810 2025 13,163 — 13,163 2026 13,375 — 13,375 Thereafter 48,975 — 48,975 Total lease payments $ 116,735 $ (2,918) $ 113,817 Discount effect 25,147 Present value of future minimum lease payments $ 91,588 The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows: Lease Term and Discount Rate December 31, 2021 Weighted-average remaining lease term (in years) 8.43 Weighted-average discount rate 5.42 % |
Leases | Leases Lessor Arrangements The Company has lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the year ended December 31, 2021, interest earned on Equipment Finance was $10.8 million and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. The components of Equipment Finance assets are as follows: December 31, 2021 Lease receivables $ 122,927 Unguaranteed residual asset values 36,837 Unearned income (10,989) Deferred fees 380 Total $ 149,155 Future minimum lease payments based on maturity of the Company’s lessor arrangements as of December 31, 2021 were as follows: 2022 $ 43,907 2023 35,803 2024 27,374 2025 16,235 2026 9,084 Thereafter 4,382 Total lease payments $ 136,785 Discount effect (13,858) Present value of future minimum lease payments $ 122,927 Lessee Arrangements The Company has operating leases for its headquarters in San Francisco, California, as well as additional office space in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of December 31, 2021, the lease agreements have remaining lease terms ranging from approximately one year to nine years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. In addition, the Company is the sublessor of a portion of its office space in San Francisco, with remaining lease terms of less than one year. As of December 31, 2021, the Company pledged $0.9 million of cash and $5.5 million in letters of credit as security deposits in connection with its lease agreements. The Company reviewed operating lease right-of-use (ROU) assets for impairment. For the year ended December 31, 2021, the Company recognized an impairment expense of $1.0 million on operating lease assets, included in “Occupancy expense.” For the year ended December 31, 2020, the Company recognized an impairment expense of $3.6 million on operating lease assets. Balance sheet information related to leases was as follows: ROU Assets and Lease Liabilities Balance Sheet Classification December 31, 2021 December 31, 2020 Operating lease assets Other assets $ 77,316 $ 74,037 Operating lease liabilities (1) Other liabilities $ 91,588 $ 94,538 (1) The difference between operating lease assets and operating lease liabilities is the unamortized balance of deferred rent. Components of net lease costs were as follows: Year Ended December 31, Net Lease Costs Income Statement Classification 2021 2020 2019 Operating lease costs (1) Occupancy $ (18,773) $ (17,346) $ (19,502) Sublease revenue Other non-interest income 6,149 6,146 4,637 Net lease costs $ (12,624) $ (11,200) $ (14,865) (1) Includes variable lease costs of $1.3 million, $1.5 million and $1.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Supplemental cash flow information related to the Company’s operating leases was as follows: Year Ended December 31, 2021 2020 2019 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ 12,914 $ 84 $ 15,277 (1) Represents non-cash activity and, accordingly, is not reflected on the Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of December 31, 2021 were as follows: Operating Lease Sublease Net 2022 $ 15,947 $ (2,918) $ 13,029 2023 12,465 — 12,465 2024 12,810 — 12,810 2025 13,163 — 13,163 2026 13,375 — 13,375 Thereafter 48,975 — 48,975 Total lease payments $ 116,735 $ (2,918) $ 113,817 Discount effect 25,147 Present value of future minimum lease payments $ 91,588 The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows: Lease Term and Discount Rate December 31, 2021 Weighted-average remaining lease term (in years) 8.43 Weighted-average discount rate 5.42 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments For discussion regarding the Company’s operating lease commitments, see “ Note 18. Leases. ” Loan Repurchase Obligations The Company is generally required to repurchase loans or interests therein in the event of identity theft or certain other types of fraud on the part of the borrower or education and patient service providers. The Company may also repurchase loans or interests therein in connection with certain customer accommodations. In connection with certain loan sales, the Company agreed to repurchase loans if representations and warranties made with respect to such loans were breached under certain circumstances. In the case of certain securitization transactions, the Company also agreed to repurchase or substitute loans for which a borrower failed to make the first payment due under a loan. The Company believes such provisions are customary and consistent with institutional loan and securitization market standards. As a result of loan repurchase obligations, the Company repurchased $1.0 million, $3.3 million and $5.5 million in loans or interests therein during 2021, 2020 and 2019 respectively. Unfunded Loan Commitments As of December 31, 2021, the contractual amount of unfunded loan commitments was $110.8 million. See “ Note 6. Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses ” for additional detail related to the reserve for unfunded lending commitments. Legal The Company is subject to various claims brought in a litigation or regulatory context. These matters include lawsuits, including but not limited to, putative class action lawsuits and routine litigation matters arising in the ordinary course of business. In addition, the Company, and its business practices and compliance with licensing and other regulatory requirements, is subject to periodic exams, investigations, inquiries or requests, enforcement actions and other proceedings from federal and state regulatory agencies, including from the federal banking regulators that directly regulate the Company and/or LC Bank. The majority of these claims and proceedings relate to or arise from alleged state or federal law and regulatory violations, or are alleged commercial disputes or consumer complaints. The Company accrues for costs related to contingencies when a loss from such claims is probable and the amount of loss can be reasonably estimated. In determining whether a loss from a claim is probable and the loss can be reasonably estimated, the Company reviews and evaluates its litigation and regulatory matters on at least a quarterly basis in light of potentially relevant factual and legal developments. If the Company determines an unfavorable outcome is not probable or the amount of loss cannot be reasonably estimated, the Company does not accrue for a potential litigation loss. In those situations, the Company discloses an estimate or range of the reasonably possible losses, if such estimates can be made. Except as otherwise specifically noted below, at this time, the Company does not believe that it is possible to estimate the reasonably possible losses or a range of reasonably possible losses related to the matters described below. Regulatory Examinations and Actions Relating to the Company’s Business Practices and Licensing The Company is and has been subject to periodic inquiries and enforcement actions brought by federal and state regulatory agencies relating to the Company’s business practices, the required licenses to operate its business, and its manner of operating in accordance with the requirements of its licenses and the regulatory framework applicable to its business. The Company is routinely subject to examination for compliance with applicable laws and regulations in the states in which it is licensed. The Company is subject to examination by the New York Department of Financial Services (NYDFS) and other regulators. The Company periodically has discussions with various regulatory agencies regarding its business model and has engaged in similar discussions with the NYDFS. During the course of such discussions with the NYDFS, which remain ongoing, the Company decided to voluntarily comply with certain rules and regulations of the NYDFS while it was not a bank holding company operating a national bank. In the past, the Company has successfully resolved such matters in a manner that was not material to its results of financial operations in any period and that did not materially limit the Company’s ability to conduct its business. However, no assurances can be given as to the timing, outcome or consequences of these matters or other similar matters if or as they arise. FTC Lawsuit In 2016, the Company received a formal request for information from the Federal Trade Commission (FTC). The FTC commenced an investigation concerning certain of the Company’s policies and practices and related legal compliance. On April 25, 2018, the FTC filed a complaint in the Northern District of California ( FTC v. LendingClub Corporation , No. 3:18-cv-02454) alleging causes of action for violations of the FTC Act, including claims of deception in connection with disclosures related to the origination fee associated with loans available through the Company’s platform, and in connection with communications relating to the likelihood of loan approval during the application process, and a claim of unfairness relating to certain unauthorized charges to borrowers’ bank accounts. The FTC’s complaint also alleged a violation of the Gramm-Leach-Bliley Act regarding the Company’s practices in delivering its privacy notice. Following the Court’s ruling on a motion to dismiss filed by the Company, the FTC filed an amended complaint on October 22, 2018, which reasserted the same causes of action from the original complaint. On November 13, 2018, the Company filed an answer to the amended complaint. Following a motion by the FTC to strike certain affirmative defenses in the answer, the Company filed an amended answer in the case on May 29, 2019. The discovery period in the case is closed. On February 27, 2020, both the Company and the FTC filed various motions with the Court, including motions to exclude expert testimony and motions for summary judgment as to some or all of the claims in the case. The FTC also filed a motion for partial judgment on the pleadings in the case. These motions were heard by the Court on April 27, 2020. On June 1, 2020, the Court issued an order granting in part and denying in part both the Company’s and the FTC’s motions for summary judgment. The Court also denied the motions to exclude expert testimony and granted in part and denied in part the FTC’s motion for partial judgment on the pleadings. The FTC’s Gramm-Leach-Bliley Act claim has been dismissed from the case, but issues relating to the FTC’s three other claims will need to be tried. On July 30, 2020, the Company filed a motion to stay the litigation pending the U.S. Supreme Court’s decisions in two cases (F.T.C. v. Credit Bureau Center and AMG Capital Management, LLC v. F.T.C.) that raise the issue whether the FTC is entitled to seek monetary relief under Section 13(b) of the FTC Act. On August 20, 2020, the Court issued an order granting the Company’s motion to stay proceedings in the case until the U.S. Supreme Court issues its decision in the Credit Bureau Center and AMG Capital Management cases. As a result of this order, the trial that was scheduled for October 19, 2020 will need to be rescheduled at a later date following the Supreme Court’s ruling. The Supreme Court has vacated its prior grant of review in the Credit Bureau Center case but heard oral argument in the AMG Capital Management case on January 13, 2021. The impact of the Supreme Court decision could impact the Company’s case which is why the trial was stayed pending the Supreme Court decision. On April 22, 2021, the Supreme Court ruled in favor of AMG Capital Management ordering that the FTC does not currently have the authority to obtain equitable monetary relief under the statute that is also applicable in the Company’s matter with the FTC. On July 14, 2021, the Company entered into an agreement with the FTC to conclude the FTC’s investigation and litigation (the Settlement). Pursuant to the terms of the Settlement, LendingClub made an $18 million payment for consumer remediation. The Settlement does not include any admission of liability, and LendingClub does not expect that the Settlement will impact its current operations. On July 19, 2021, the Court approved the Settlement and this matter is now concluded. Class Action Lawsuit Following Announcement of FTC Litigation In May 2018, following the announcement of litigation by the FTC against the Company, putative shareholder class action litigation was filed in the U.S. District Court of the Northern District of California ( Veal v. LendingClub Corporation et. al., No. 5:18-cv-02599) against the Company and certain of its current and former officers and directors alleging violations of federal securities laws in connection with the Company’s description of fees and compliance with federal privacy law in securities filings. On January 7, 2019, the lead plaintiffs filed a consolidated amended class action complaint which asserted the same causes of action as the original complaint and added additional allegations. That complaint was subsequently dismissed by the District Court with leave to amend. The lead plaintiffs filed a Second Amended Complaint on December 19, 2019, which modified and added certain allegations and dropped one of the former officer defendants as a defendant in the case, but otherwise advanced the same causes of action. On June 12, 2020, the District Court issued an order granting a motion to dismiss by the defendants without leave to amend, in part, and with leave to amend, in part. On July 27, 2020, the lead plaintiffs filed a notice with the District Court indicating their intention not to file a Third Amended Complaint and requesting that the District Court enter judgment. The District Court entered judgment and dismissed all claims in the case the same day. The lead plaintiffs appealed the judgment to the U.S. Court of Appeals for the Ninth Circuit ( Veal et al. v. LendingClub Corporation, et al. , No. 20-16603). The Court of Appeals held oral arguments for the appeal on September 2, 2021. On September 21, 2021, the Court of Appeals affirmed the District Court’s dismissal of all claims against the defendants and the period for the U.S. Supreme Court to grant certiorari expired in December 2021. Accordingly, this matter is now concluded. Putative Class Actions In February 2020, a putative class action lawsuit was filed against the Company in the U.S. District Court for the Northern District of California ( Erceg v. LendingClub Corporation , No. 4:20-cv-01153). The lawsuit alleges violations of California and Massachusetts law based on allegations that the Company recorded a call with plaintiff without notifying him that it would be recorded. Plaintiff seeks to represent a purported class of similarly situated individuals who had phone calls recorded by the Company without their knowledge and consent. The Company filed a motion to dismiss certain of plaintiff’s claims, strike nationwide class allegations, and, alternatively, to stay the litigation. Rather than oppose that motion, plaintiff filed an amended complaint. The Company again filed a motion to stay, or alternatively to dismiss certain of the claims in the amended complaint and to strike nationwide class allegations. That motion was heard by the Court on July 9, 2020. On July 28, 2020, the Court entered an order granting the Company’s motion to stay plaintiff’s California claims pending a decision by the California Supreme Court in a case involving the California Invasion of Privacy Act ( Smith v. LoanMe, Inc. ), dismissing with prejudice plaintiff’s claim under Massachusetts law, and denying the Company’s motion to strike plaintiff’s nationwide class allegations. In April 2021, the California Supreme Court issued a decision in the LoanMe case in a manner that permits plaintiff’s claims in the Company’s case to continue. The Company then filed its answer to plaintiff’s complaint and discovery began. The parties have since reached a tentative settlement, the terms of which are not material to the Company. No assurances can be given as to the timing, outcome or consequences of this matter. In February 2021, a putative class action lawsuit was filed against the Company in the U.S. District Court for the Southern District of Texas ( Bradford v. Lending Club Corporation , No. 4:21-cv-00588). The lawsuit asserts a cause of action under the Fair Credit Reporting Act (FCRA) based on allegations that the Company obtained plaintiff’s credit report without his consent or authorization and without a permissible purpose under the FCRA. Plaintiff seeks to represent a class of allegedly similarly situated persons in the case and seeks monetary, injunctive, and declaratory relief, among other relief. Plaintiff has amended the complaint to assert additional allegations regarding the Company’s purported requests for plaintiff’s credit report from another credit reporting agency. The Company has since filed its answer to plaintiff’s complaint and discovery has begun. The Court has scheduled this matter for trial in September 2022. No assurances can be given as to the timing, outcome or consequences of this matter. Certain Financial Considerations Relating to Litigation and Investigations The Company had $2.5 million and $21.6 million in accrued contingent liabilities as of December 31, 2021 and 2020, respectively. The decrease in accrued contingent liabilities was primarily due to the $18 million settlement with the FTC in 2021. In addition to the foregoing, the Company is subject to, and may continue to be subject to, legal proceedings and regulatory actions in the ordinary course of business. No assurance can be given as to the timing, outcome or consequences of any of these matters. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Regulatory Requirements | Regulatory RequirementsLendingClub and LC Bank are subject to comprehensive supervision, examination and enforcement, and regulation by the FRB and the Office of the Comptroller of the Currency (OCC), including generally similar capital adequacy requirements adopted by the FRB and the OCC, respectively. These requirements establish required minimum ratios for Common Equity Tier 1 (CET1) risk-based capital, Tier 1 risk-based capital, total risk-based capital and a Tier 1 leverage ratio; set risk-weighting for assets and certain other items for purposes of the risk-based capital ratios; and define what qualifies as capital for purposes of meeting the capital requirements. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company. The minimum capital requirements under the Basel Committee on Banking Supervision standardized approach for U.S. banking organizations (U.S. Basel III) capital framework are: a CET1 risk-based capital ratio of 4.5%, a Tier 1 risk-based capital ratio of 6.0%, a total risk-based capital ratio of 8.0%, and a Tier 1 leverage ratio of 4.0%. Additionally, a Capital Conservation Buffer (CCB) of 2.5% must be maintained above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases, and certain discretionary bonus payments. In addition to these guidelines, the regulators assess any particular institution’s capital adequacy based on numerous factors and may require a particular banking organization to maintain capital at levels higher than the generally applicable minimums prescribed under the U.S. Basel III capital framework. In this regard, and unless otherwise directed by the FRB and the OCC, we have made commitments for the Company and LC Bank (until February 2024) to maintain a CET1 risk-based capital ratio of 11.0%, a Tier 1 risk-based capital ratio above 11.0%, a total risk-based capital ratio above 13.0%, and a Tier 1 leverage ratio of 11.0%. The following table summarizes LC Bank’s regulatory capital amounts and ratios (in millions): LendingClub Bank Required Minimum plus Required CCB for Non-Leverage Ratios December 31, 2021 Amount Ratio CET1 capital (1) $ 523.7 16.7 % 7.0 % Tier 1 capital $ 523.7 16.7 % 8.5 % Total capital $ 563.7 18.0 % 10.5 % Tier 1 leverage $ 523.7 14.3 % 4.0 % Risk-weighted assets $ 3,130.4 N/A N/A Quarterly adjusted average assets $ 3,667.7 N/A N/A N/A – Not applicable (1) Consists of common stockholders’ equity as defined under U.S. GAAP and certain adjustments made in accordance with regulatory capital guidelines, including the addition of the CECL transitional benefit and deductions for goodwill and other intangible assets. The following table presents the regulatory capital and ratios of the Company (in millions): LendingClub Required Minimum plus Required CCB for Non-Leverage Ratios December 31, 2021 Amount Ratio CET1 capital (1) $ 710.0 21.3 % 7.0 % Tier 1 capital $ 710.0 21.3 % 8.5 % Total capital $ 767.9 23.0 % 10.5 % Tier 1 leverage $ 710.0 16.5 % 4.0 % Risk-weighted assets $ 3,333.2 N/A N/A Quarterly adjusted average assets $ 4,301.7 N/A N/A N/A – Not applicable (1) Consists of common stockholders’ equity as defined under U.S. GAAP and certain adjustments made in accordance with regulatory capital guidelines, including the addition of the CECL transitional benefit and deductions for goodwill and other intangible assets. In response to the COVID-19 pandemic, the FRB, OCC, and FDIC adopted a final rule related to the regulatory capital treatment of the allowance for credit losses under CECL. As permitted by the rule, the Company elected to delay the estimated impact of CECL on regulatory capital through 2021. As a result, a capital benefit of $35.5 million was included in the computation of the Company’s CET1 capital at December 31, 2021. Beginning on January 1, 2022, this benefit will be phased out over a three-year transition period at a rate of 25% each year through January 1, 2025. The Federal Deposit Insurance Act provides for a system of “prompt corrective action” (PCA). The PCA regime provides for capitalization categories ranging from “well-capitalized” to “critically undercapitalized.” An institution’s PCA category is determined primarily by its regulatory capital ratios. The PCA requires remedial actions and imposes limitations that become increasingly stringent as its PCA capitalization category declines, including the ability to accept and/or rollover brokered deposits. At December 31, 2021, the Company’s and LC Bank’s regulatory capital ratios exceeded the thresholds required to be regarded as well-capitalized institutions and met all capital adequacy requirements to which they are subject. There have been no events or conditions since December 31, 2021 that management believes would change the Company’s categorization. Federal laws and regulations limit the dividends that a national bank may pay. Dividends that may be paid by a national bank without the express approval of the OCC are limited to that bank’s retained net profits for the preceding two calendar years plus retained net profits up to the date of any dividend declaration in the current calendar year. Retained net profits, as defined by the OCC, consist of net income less dividends declared during the period. Additionally, under the OCC Operating Agreement, LC Bank is required to obtain a written determination of non-objection from the OCC before declaring any dividend. No dividends were declared by LC Bank in 2021. Federal law restricts the amount and the terms of both credit and non-credit transactions between a bank and its nonbank affiliates. These covered transactions may not exceed 10% of the bank’s capital and surplus (which for this purpose represents tier 1 and tier 2 capital, as calculated under the risk-based capital rules, plus the balance of the ACL excluded from tier 2 capital) with any single nonbank affiliate and 20% of the bank’s capital and surplus with all its nonbank affiliates. Covered transactions that are extensions of credit may require collateral to be pledged to provide added security to the bank. |
Other Non-interest Income and N
Other Non-interest Income and Non-interest Expense | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Non-interest Income and Non-interest Expense | Other Non-interest Income and Other Non-interest Expense Other non-interest income consists of the following: Year Ended December 31, 2021 2020 2019 Referral revenue $ 14,234 $ 5,011 $ 5,474 Realized losses on sales of securities available for sale and other investments (93) 11 (8) Other 13,078 8,420 8,365 Total other non-interest income $ 27,219 $ 13,442 $ 13,831 Other non-interest expense consists of the following: Year Ended December 31, 2021 2020 2019 Consumer credit services $ 16,214 $ 13,229 $ 26,707 Other 45,044 34,533 37,370 Total other non-interest expense $ 61,258 $ 47,762 $ 64,077 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company defines operating segments to be components of the Company for which discrete financial information is evaluated regularly by the Company’s chief executive officer and chief financial officer to allocate resources and evaluate financial performance. This information is reviewed according to the legal organizational structure of the Company’s operations with products and services presented separately for the parent bank holding company and its wholly-owned subsidiary, LC Bank. Taxes are recorded on a separate entity basis whereby each operating segment determines income tax expense or benefit as if it filed a separate tax return. Differences between separate entity and consolidated tax returns are eliminated upon consolidation. LendingClub Bank The LC Bank operating segment represents the national bank legal entity and reflects post-Acquisition operating activities. This segment provides a full complement of financial products and solutions, including loans, leases and deposits. It originates loans to individuals and businesses, retains loans for investment, sells loans to investors and manages relationships with deposit holders. All of the Company’s revenue is generated in the United States. No individual borrower or investor accounted for 10% or more of consolidated net revenue for any of the periods presented. LendingClub Corporation (Parent Only) The LendingClub Corporation (parent only) operating segment represents the holding company legal entity and predominately reflects the operations of the Company prior to the Acquisition. This activity includes, but is not limited to, the purchase and sale of loans and issuances of education and patient finance loans that were originated by issuing bank partners. Financial information for the segments is presented in the following table: LendingClub LendingClub Intercompany Consolidated Total Eleven Months Ended December 31, Year Ended December 31, Eleven Months Ended December 31, Year Ended December 31, 2021 2021 2020 2019 2021 2021 2020 2019 Non-interest income: Marketplace revenue $ 462,821 $ 115,759 $ 245,314 $ 646,735 $ — $ 578,580 $ 245,314 $ 646,735 Other non-interest income 94,953 16,718 13,442 13,831 (84,452) 27,219 13,442 13,831 Total non-interest income 557,774 132,477 258,756 660,566 (84,452) 605,799 258,756 660,566 Interest income: Interest income 210,739 82,093 209,694 345,345 — 292,832 209,694 345,345 Interest expense (8,412) (71,589) (150,366) (247,304) — (80,001) (150,366) (247,304) Net interest income 202,327 10,504 59,328 98,041 — 212,831 59,328 98,041 Total net revenue 760,101 142,981 318,084 758,607 (84,452) 818,630 318,084 758,607 Reversal of (provision for) credit losses (142,182) 3,382 (3,382) — — (138,800) (3,382) — Non-interest expense (547,799) (198,039) (502,319) (789,498) 84,452 (661,386) (502,319) (789,498) Income (Loss) before income tax benefit (expense) 70,120 (51,676) (187,617) (30,891) — 18,444 (187,617) (30,891) Income tax benefit (expense) 9,171 44,013 79 201 (53,048) 136 79 201 Consolidated net income (loss) $ 79,291 $ (7,663) $ (187,538) $ (30,690) $ (53,048) $ 18,580 $ (187,538) $ (30,690) Capital expenditures $ 32,602 $ 1,811 $ 31,147 $ 50,668 $ — $ 34,413 $ 31,147 $ 50,668 Depreciation and amortization $ 4,569 $ 39,716 $ 54,030 $ 59,152 $ — $ 44,285 $ 54,030 $ 59,152 LendingClub Bank LendingClub Corporation Intercompany Consolidated Total December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Assets Total cash and cash equivalents $ 659,919 $ — $ 88,268 $ 524,963 $ (61,061) $ — $ 687,126 $ 524,963 Restricted cash — — 76,540 103,522 (80) — 76,460 103,522 Securities available for sale at fair value 205,730 — 57,800 142,226 — — 263,530 142,226 Loans held for sale 335,449 — 55,799 121,902 — — 391,248 121,902 Loans and leases held for investment, net 2,754,737 — — — — — 2,754,737 — Retail and certificate loans held for investment at fair value — — 229,719 636,686 — — 229,719 636,686 Other loans held for investment at fair value — — 21,240 49,954 — — 21,240 49,954 Property, equipment and software, net 36,424 — 61,572 96,641 — — 97,996 96,641 Investment in subsidiary — — 557,577 — (557,577) — — — Goodwill 75,717 — — — — — 75,717 — Other assets 254,075 — 168,042 187,399 (119,571) — 302,546 187,399 Total assets 4,322,051 — 1,316,557 1,863,293 (738,289) — 4,900,319 1,863,293 Liabilities and Equity Total deposits 3,196,929 — — — (61,141) — 3,135,788 — Short-term borrowings 165 — 27,615 104,989 — — 27,780 104,989 Advances from PPPLF 271,933 — — — — — 271,933 — Retail notes, certificates and secured borrowings at fair value — — 229,719 636,774 — — 229,719 636,774 Payable on Structured Program borrowings — — 65,451 152,808 — — 65,451 152,808 Other long-term debt — — 15,455 — — — 15,455 — Other liabilities 218,775 — 150,727 244,551 (65,551) — 303,951 244,551 Total liabilities 3,687,802 — 488,967 1,139,122 (126,692) — 4,050,077 1,139,122 Total equity 634,249 — 827,590 724,171 (611,597) — 850,242 724,171 Total liabilities and equity $ 4,322,051 $ — $ 1,316,557 $ 1,863,293 $ (738,289) $ — $ 4,900,319 $ 1,863,293 |
LendingClub Corporation _ Paren
LendingClub Corporation – Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
LendingClub Corporation – Parent Company Only Financial Statements | LendingClub Corporation – Parent Company-Only Financial Statements Upon the Acquisition in 2021, the Company became a bank holding company and formed LC Bank. Prior to the Acquisition, the consolidated financial results of the Company were the LendingClub Corporation (Parent Company) financial results. See “ Item 8. Financial Statements and Supplementary Data – Consolidated Financial Statements of LendingClub Corporation ” for the 2020 and 2019 comparative results. Investment in the LC Bank subsidiary is accounted for by the Parent Company using the equity method for this presentation. Results of operations of the Parent Company’s bank subsidiary is therefore classified in the Parent Company’s investment in subsidiary account. VIEs in which the Parent Company is the primary beneficiary are included in the Parent Company-only financial statements. Statement of Operations Year Ended December 31, 2021 Non-interest income: Marketplace revenue $ 115,759 Other non-interest income 16,718 Total non-interest income 132,477 Interest income: Interest on loans held for sale at fair value 11,025 Interest on retail and certificate loans held for investment at fair value 57,684 Interest on other loans held for investment at fair value 4,436 Interest on securities available for sale 8,922 Other interest income 26 Total interest income 82,093 Interest expense: Interest on short-term borrowings 3,676 Interest on retail notes, certificates and secured borrowings 57,684 Interest on Structured Program borrowings 9,638 Interest on other long-term debt 591 Total interest expense 71,589 Net interest income 10,504 Total net revenue 142,981 Reversal of credit losses (3,382) Non-interest expense: Compensation and benefits 31,010 Marketing 5,460 Equipment and software 2,459 Occupancy 17,751 Depreciation and amortization 39,716 Professional services 14,666 Other non-interest expense 86,977 Total non-interest expense 198,039 Loss before income tax benefit (51,676) Income tax benefit 44,013 Loss before undistributed earnings of subsidiary (7,663) Equity in undistributed earnings of subsidiary 79,291 Net income $ 71,628 In accordance with federal laws and regulations, dividends paid by LC Bank to the Company are subject to certain restrictions. See “ Note 20. Regulatory Requirements ” for more information. Statement of Comprehensive Income Year Ended December 31, 2021 Net income $ 71,628 Other comprehensive income, net of tax: Net unrealized gain on securities available for sale 9,153 Equity in other comprehensive loss of subsidiary (2,619) Other comprehensive income, net of tax 6,534 Total comprehensive income $ 78,162 Balance Sheet December 31, 2021 Assets Cash and due from banks $ 58,284 Interest-bearing deposits in banks 29,984 Total cash and cash equivalents 88,268 Restricted cash 76,540 Securities available for sale at fair value ($47,225 at amortized cost) 57,800 Loans held for sale at fair value 55,799 Retail and certificate loans held for investment at fair value 229,719 Other loans held for investment at fair value 21,240 Property, equipment and software, net 61,572 Investment in subsidiary 634,249 Other assets 168,042 Total assets $ 1,393,229 Liabilities and Equity Short-term borrowings 27,615 Retail notes, certificates and secured borrowings at fair value 229,719 Payable on Structured Program borrowings 65,451 Other long-term debt 15,455 Other liabilities 150,727 Total liabilities 488,967 Equity Common stock, $0.01 par value; 180,000,000 shares authorized; 101,043,924 shares issued and outstanding 1,010 Additional paid-in capital 1,609,820 Accumulated deficit (714,586) Accumulated other comprehensive income 8,018 Total equity 904,262 Total liabilities and equity $ 1,393,229 Statement of Cash Flows Year Ended December 31, 2021 Cash Flows from Operating Activities: Parent company net income $ 71,628 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (79,291) Income tax benefit (44,013) Net fair value adjustments (5,936) Reversal of credit losses (3,382) Change in fair value of loan servicing assets 37,138 Stock-based compensation, net 14,506 Depreciation, amortization, and accretion 39,935 Gain on sales of loans (3,372) Other, net 9,107 Net change to loans held for sale 90,609 Net change in operating assets and liabilities: Other assets (29,556) Other liabilities (95,737) Net cash provided by operating activities 1,636 Cash Flows from Investing Activities: Acquisition of company (145,344) Payments for investments in and advances to subsidiary (250,001) Cash received from Acquisition 658 Net change in loans and leases 1,360 Net decrease in retail and certificate loans 437,870 Proceeds from maturities and paydowns of securities available for sale 103,258 Purchases of property, equipment and software, net (1,811) Other investing activities 8,146 Net cash provided by investing activities 154,136 Cash Flows from Financing Activities: Principal payments on Structured Program borrowings (90,187) Principal payments on retail notes and certificates (438,032) Principal payments on short-term borrowings (81,935) Other financing activities (9,295) Net cash used for financing activities (619,449) Net Decrease in Cash, Cash Equivalents and Restricted Cash (463,677) Cash, Cash Equivalents and Restricted Cash, Beginning of Period 628,485 Cash, Cash Equivalents and Restricted Cash, End of Period $ 164,808 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On February 1, 2021, LendingClub Corporation (LendingClub) completed the acquisition of Radius Bancorp, Inc. (Radius), whereby LendingClub became a bank holding company and formed LendingClub Bank, National Association (LC Bank) as its wholly-owned subsidiary. The Company operates the vast majority of its business through LC Bank, as a lender and originator of loans and as a regulated bank in the United States. All intercompany balances and transactions have been eliminated. These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, contain all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. These estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. The acquisition of Radius (the Acquisition) significantly changed the presentation of the Company’s financial statements, which are now structured according to the presentation requirements for bank holding companies under Article 9 of the United States Securities and Exchange Commission’s (SEC) Regulation S-X. Prior period amounts in the financial statements and related footnotes have been reclassified to conform to the current period presentation. See “ Note 2. Business Acquisition ” which illustrates the reclassification adjustments made to align with the current presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents have original maturities of three months or less and include cash on hand, cash items in transit, and amounts due from or held with other depository institutions, primarily with the Federal Reserve Bank (FRB). |
Restricted Cash | Restricted Cash Cash items held with other depository institutions in which the ability to withdraw funds is restricted by contractual provisions is classified as restricted cash. Such amounts include: (i) cash pledged as security related to LendingClub’s issuing bank activities and transactions with certain investors; and (ii) cash received from borrowers on loans owned and not yet distributed to investors. |
Securities | Securities Debt securities purchased and asset-backed securities retained from the sale of loans are classified as available for sale (AFS) securities. AFS securities represent investment securities with readily determinable fair values that the Company: (i) does not hold for trading purposes and (ii) does not have the positive intent and ability to hold to maturity. AFS securities are measured at fair value, with unrealized gains and losses reported in “Accumulated other comprehensive income” within the equity section of the Balance Sheet. The amount reported in “Accumulated other comprehensive income” is net of any valuation allowance and applicable income taxes. Management evaluates whether debt AFS securities with unrealized losses are impaired on a quarterly basis. For any security that has declined in fair value below its amortized cost basis, the Company recognizes an impairment loss in current period earnings if management has the intent to sell the security or if it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. The assessment of impairment also considers whether the decline in fair value below the security’s amortized cost basis is attributable to credit-related factors. If credit-related factors exist, credit-related impairment has occurred regardless of the Company’s intent to hold the security until it recovers. The credit-related portion of impairment is recognized as provision for credit loss expense in earnings with a corresponding valuation allowance for AFS securities on the Balance Sheet, to the extent the allowance does not reduce the value of the security below its fair value. AFS securities where the expected cash flows are significantly lower than that of the contractual future cash flows at the time of acquisition are considered to be purchased with credit deterioration (PCD). The discounted differential in expected and contractual cash flows is included with the purchase price of the asset to determine amortized cost of the security with an equal and offsetting valuation allowance for credit losses. Equity securities that do not have readily determinable fair values are generally recorded at cost adjusted for impairment, if any. These securities include FRB stock and Federal Home Loan Bank stock and are reported as “Nonmarketable equity investments” in “Other assets” on the Balance Sheet. |
Loans and Leases | Loans and Leases The Company initially classifies loans and leases as either held for sale (HFS) or held for investment (HFI) based on management’s assessment of its intent and ability to hold the loans for the foreseeable future or until maturity. Management’s intent and ability with respect to certain loans may change from time to time. In order to reclassify loans to HFS, management must have the intent to sell the loans and the ability to reasonably identify the specific loans to be sold. HFI loans, with the exception of HFI loans accounted for under the fair value option, are measured at historical cost and reported at their outstanding principal balances net of any charge-offs, unamortized deferred fees and costs on originated loans, and for purchased loans, net of any unamortized premiums and discounts. Leases are recorded at the discounted amounts of lease payments receivable plus the estimated residual value of the leased asset, net of unearned income and unamortized deferred fees and costs. Lease payments receivable reflect contractual lease payments adjusted for renewal or termination options that the Company believes the customer is reasonably certain to exercise. Unearned income, deferred fees and costs, and discounts and premiums are accreted and amortized to interest income over the contractual life of the loan using its effective interest rate. HFI loans measured at fair value under the Company’s election of the fair value option include retail and certificate loans and the related notes and certificates. Fees and costs for loans accounted for under the fair value option are recognized in earnings at the inception of the loan and are not deferred. Due to the payment dependent feature of the notes and certificates, changes in the fair value of the notes and certificates are offset by changes in the fair values of related loans, resulting in no net effect on the Company’s earnings. Loans initially classified as HFS are reported at their fair value with the Company’s election of the fair value option. Origination fees are recognized in earnings within “Marketplace revenue” on the Consolidated Statements of Operations (Income Statement) at the time of loan origination. Changes in the fair value are recorded in “Net fair value adjustments” included in “Marketplace revenue” on the Income Statement. In certain circumstances, the Company may transfer loans from HFI to HFS. At the time of transfer, these loans are valued at the lower of amortized cost or fair value. |
Accrued Interest Income and Non-Accrual Policy | Accrued Interest Income and Non-Accrual Policy Interest income is accrued as earned. The accrual of interest income is discontinued, and the loan or lease is placed on nonaccrual status at 90 days past due or when reasonable doubt exists as to timely collection. Past due status is based on the contractual terms of the loan or lease. When a loan or lease is placed on nonaccrual status, all income previously accrued but not collected is reversed against the current period’s interest income. Because the Company has a nonaccrual policy which results in the timely reversal of past-due accrued interest, it does not record an allowance for credit losses (ACL) on accrued interest receivable. Interest collections on nonaccrual loans and leases |
Allowance for Credit Losses | Allowance for Credit Losses The ACL represents management’s estimate of expected credit losses in the loan and lease portfolio, excluding loans accounted for under the fair value option. The ACL is measured based on a lifetime expected loss model, which does not require a loss event to occur before a credit loss is recognized. Under the lifetime expected credit loss model, the Company estimates the allowance based on relevant available information related to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. The ACL is estimated using a discounted cash flow (DCF) approach where effective interest rates are used to calculate the net present value of expected cash flows. The effective interest rate is calculated based on the periodic interest income received from the loan’s contractual cash flows and the net investment in the loan, which includes deferred origination fees and costs, to provide a constant rate of return over the term. The Company evaluates its estimate of expected credit losses each reporting period and records any additions to the allowance on the Income Statement as “Provision for credit losses.” Amounts determined to be uncollectible are charged-off to the allowance. Estimates of expected credit losses include expected recoveries of amounts previously charged-off and amounts expected to be charged-off. If amounts previously charged off are subsequently expected to be collected, the Company may recognize a negative allowance, which is limited to the amount that was previously charged off. Under applicable accounting guidance, for reporting purposes, the loan and lease portfolio is categorized by portfolio segment. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine the ACL. The Company’s two portfolio segments are consumer and commercial. The Company further disaggregates its portfolio segments into various classes of financing receivables based on their underlying risk characteristics. The classes within the consumer portfolio segment are unsecured consumer, secured consumer and residential mortgages. The classes within the commercial portfolio segment are commercial and industrial, commercial real estate, and equipment finance. The ACL is measured on a collective basis when loans share similar risk characteristics. Relevant risk characteristics for the consumer portfolio include product type, risk rating, loan term, and monthly vintage. Relevant risk characteristics for the commercial portfolio include product type, risk rating and PCD status. Loans measured on a collective basis generally have an ACL comprised of a quantitative, or modeled, component that is supplemented by a framework of qualitative factors, as discussed below. The Company will continue to monitor its loan pools on an ongoing basis and adjust accordingly as the risk characteristics of the financial assets may change over time. If a given financial asset does not share similar risk characteristics with other financial assets, the Company shall measure expected credit losses on an individual, rather than on a collective basis. Loans evaluated on an individual basis generally have an ACL that is measured in reference to any collateral securing the loan and/or expected cash flows which are specific to the borrower. Allowance Calculation Methodology The Company generally estimates expected credit losses over the contractual term of its loans. The contractual term is adjusted for estimated prepayments when appropriate. Expected renewals and extensions do not adjust the contractual term unless the extension or renewal option is through a troubled debt restructuring (TDR) that is reasonably expected to occur or represents an unconditionally cancellable option held by the borrower. The quantitative, or modeled, component of the ACL is primarily based on statistical models that use known or estimated data as of the balance sheet date and forecasted data over the reasonable and supportable period. Known and estimated data include current probability and timing of default, loss rate and recovery exposure at default, timing and amount of estimated prepayments, timing and amount of expected draws (for unfunded lending commitments), and relevant risk characteristics. Certain of the Company’s commercial portfolios have limited internal historical loss data and use external credit loss information, including historical charge-off and balance data for peer banking institutions. The Company obtains historical and forecast macroeconomic information to inform its view of the long-term condition of the economy. Forward-looking macroeconomic factors considered in the Company’s macroeconomic variable integrated statistical models include gross domestic product (GDP), unemployment rate, unemployment insurance claims, housing prices, and retail sales. Forward-looking macroeconomic factors are incorporated into the Company’s models for a two-year reasonable and supportable economic forecast period followed by a one-year reversion period during which expected credit losses are expected to revert back on a straight-line basis to historical losses unadjusted for economic conditions. The reasonable and supportable economic forecast period and reversion methodology are accounting estimates which may change in future periods as a result of changes to the current macroeconomic environment. The Company’s statistical models produce expected cash flows, which are then discounted at the effective interest rate to derive net present value. The effective interest rate is calculated based on the periodic interest income received from the loan’s contractual cash flows and the net investment in the loan, which includes deferred origination fees and costs, to provide a constant rate of return over the term. This net present value is then compared to the amortized cost basis to derive the expected credit losses. As a result, the quantitative, or modeled, portion of ACL is estimated using a DCF approach. The Company also considers the need for qualitative adjustments to the modeled estimate of expected credit losses. For this purpose, the Company established a qualitative factor framework to periodically assess qualitative adjustments to address certain identified elements that are not directly captured by the statistically modeled expected credit loss. These factors may include the impact of risk rating downgrades, changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in lending management, non-modeled macroeconomic outlook and other external factors. Zero Credit Loss Expectation Exception The Company has a zero loss expectation when the loans, or portions thereof, are issued or guaranteed by certain U.S. government entities or agencies, as those entities or agencies have a long history of no defaults and the highest credit ratings issued by rating agencies. Loans held for investment, or portions thereof, which meet this criterion do not have an ACL. Reserve for Unfunded Lending Commitments The ACL includes an estimate for expected credit losses on off-balance sheet commitments to extend credit and unused lines of credit. The Company estimates these expected credit losses for the unfunded portion of the commitments that are not unconditionally cancellable depending on the likelihood that funding will occur. The reserve for unfunded lending commitments is reported in “Other liabilities” on the Balance Sheet. Individually Assessed Loans Loans that do not share similar risk characteristics with other financial assets, including those whose terms have been modified in a TDR and collateral-dependent loans, are individually assessed for purposes of measuring expected credit losses using the DCF approach. For loans that are determined to be collateral dependent, the ACL is determined based on the fair value of the collateral. Loans are considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially satisfied through sale or operation of the collateral. For such loans, the ACL is calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. Purchased Credit Deteriorated Assets PCD assets are acquired financial assets (or groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment. The Company considers indicators such as loan rating, FICO score, days past due status, nonaccrual status, TDR status, charge-off status, bankruptcy, modifications or risk rating to determine whether an acquired asset meets the definition of PCD. PCD assets are recorded on the acquisition date at their purchase price plus any related initial ACL, which results in a “gross-up” of the asset’s initial amortized cost basis. Recognition of the initial ACL upon the acquisition of PCD assets does not impact net income. Changes in estimates of expected credit losses after acquisition are recognized through the provision for credit losses. Acquired non-PCD assets are accounted for in a manner similar to originated financial assets, whereby any initial ACL is recorded through the “Provision for credit losses” on the Income Statement. Charge-Offs Charge-offs are recorded when the Company determines that a loan balance is uncollectible or a loss-confirming event has occurred. Loss confirming events usually involve the receipt of specific adverse information about the borrower and may include borrower delinquency status, bankruptcy, foreclosure, or receipt of an asset valuation indicating a shortfall between the value of the collateral and the book value of the loan when that collateral asset is the sole source of repayment. A full or partial charge-off reduces the amortized cost basis of the loan and the related ACL. Unsecured personal loans are charged-off when a borrower is (i) contractually 120 days past due or (ii) two payments past due and has filed for bankruptcy or is deceased. For acquired PCD loans where all or a portion of the loan balance had been charged off prior to acquisition, and for which active collection efforts are still underway, the ACL included as part of the grossed-up loan balance at acquisition is immediately charged off if required by the Company’s existing charge off policy. Additionally, the Company is required to consider its existing policies in determining whether to charge off any financial assets, regardless of whether a charge-off was recorded by the predecessor company. The initial ACL recognized on PCD assets includes the gross-up of the loan balance reduced by immediate charge-offs for loans previously charged off by the acquired company or which meet the Company’s charge-off policy on the date of acquisition. Charge-offs against the allowance related to such acquired PCD loans do not result in an income statement impact. |
Servicing Assets | Servicing Assets Servicing assets are capitalized as separate assets when loans are sold and servicing is retained. The Company records servicing assets at their estimated fair values. Servicing asset fair value is based on the excess of the contractual servicing fee over an estimated market servicing rate. When servicing assets are recognized from the sale of loans originated by the Company, the fair value of the servicing asset is included as a component of the gain or loss on the loan sale and reported within “Marketplace revenue” on the Income Statement. Subsequent changes in fair value are reported within “Servicing fees” in “Marketplace revenue” during the period in which the changes occur. Servicing assets are reported in “Other assets” on the Balance Sheet. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. Fair value is based on an exit price notion that maximizes the use of observable inputs and minimizes the use of unobservable inputs. The Company measures certain assets and liabilities at fair value when permitted or mandated by accounting standards, when the Company has elected the fair value option, and to fulfill fair value disclosure requirements. Assets and liabilities are recorded at fair value on a recurring or nonrecurring basis. Assets and liabilities that are recorded at fair value on a recurring basis require a fair value measurement at each reporting period. Such assets include AFS securities, HFS and HFI loans in which the Company has elected the fair value option, and servicing assets. The Company has elected the fair value option for certain loans and servicing assets and uses fair value measurements to record the assets on a recurring basis. The Company also uses fair value measurements for AFS securities. The fair value hierarchy includes a three-level hierarchy that assigns the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. Level 1 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 — Unobservable inputs. Unobservable inputs require greater judgment in measuring fair value. In instances where there is limited or no observable market data, fair value measurements for assets and liabilities are based primarily upon the Company’s own estimates, and the measurements reflect information and assumptions that management believes a market participant would use in pricing the asset or liability. |
Property, Equipment and Software, Net | Property, Equipment and Software, net Property, equipment and software are carried at cost less accumulated depreciation and amortization. The Company uses the straight-line method of depreciation and amortization. Estimated useful lives range from three years to five years for furniture and fixtures, computer equipment, and software. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. Internally developed software is capitalized when preliminary development efforts are successfully completed and it is probable that the project will be completed, and the software will be used as intended. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts, and costs incurred for upgrades and enhancements to add functionality of the software. Other costs are expensed as incurred. The Company evaluates impairments of its property, equipment and software whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the asset is not recoverable, measurement of an impairment loss is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is recorded when the purchase price of an acquired business exceeds the fair value of the net assets acquired. Goodwill is assigned to the Company’s reporting units at the acquisition date according to the expected economic benefits that the acquired business will provide to the reporting unit. A reporting unit is a business operating segment or a component of a business operating segment. The Company identifies its reporting units based on how the operating segments and reporting units are managed. Accordingly, the Company allocated goodwill to the LC Bank operating segment. The goodwill of each reporting unit is tested for impairment annually or more frequently in certain circumstances. The Company’s annual impairment testing is performed in the fourth quarter of each calendar year. Impairment exists when the carrying value of goodwill exceeds its estimated fair value. Adverse changes in impairment indicators such as lower than forecast financial performance, increased competition, increased regulatory oversight, or unplanned changes in operations could result in impairment. The Company can elect to either qualitatively assess goodwill for impairment, or bypass the qualitative test and proceed directly to a quantitative test. If the Company performs a qualitative assessment of goodwill to test for impairment and concludes it is more likely than not that the estimated fair value of a reporting unit is greater than its carrying value, a quantitative test is not required. However, if we determine it is more likely than not that a reporting unit’s fair value is less than its carrying amount, a quantitative assessment is performed to determine if goodwill impairment exists. Under the quantitative impairment assessment, the fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. Other intangible assets with determinable lives are recorded at their fair value upon completion of a business acquisition or certain other transactions, and generally represent the value of customer contracts or relationships. Such assets are amortized over their useful lives in a manner that best reflects their economic benefit, which may include straight-line or accelerated methods of amortization. Other intangible assets are reviewed for impairment quarterly and when events or changes in circumstances indicate that their carrying amount may not be recoverable. The Company does not have indefinite-lived intangible assets other than goodwill. Intangible assets are reported in “Other assets” on the Balance Sheet. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities in “Other liabilities” on the Balance Sheet. Associated legal expense is recorded in “Other non-interest expense” for the losses associated with the securities class action lawsuits, as described in “ Note 19. Commitments and Contingencies, ” on the Income Statement. Such liabilities and associated expenses are recorded when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company will also disclose a range of exposure to incremental loss when such amounts can be estimated and are reasonably possible to occur in future periods. In estimating the Company’s exposure to loss contingencies, if an amount within the estimated range of loss is the best estimate, that amount will be accrued. However, if there is no amount within the estimated range of loss that is the best estimate, the Company will accrue the minimum amount within the range, and disclose the amount up to the high end of the range as an exposure to incremental loss, if such amount is considered reasonably possible. Such estimates are based on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability and records an adjustment to its estimate in the period in which the adjustment is probable and an amount or range can be reasonably estimated. The determination of an expected contingent liability and associated litigation expense requires the Company to make assumptions related to the outcome of these matters. Due to the inherent uncertainties of loss contingencies, the Company’s estimates may be different than the actual outcomes. Legal fees, including legal fees associated with loss contingencies, are recognized as incurred and included in “Professional services” expense on the Income Statement. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation includes expense primarily associated with restricted stock units ( RSUs) and performance-based restricted stock units (PBRSUs), as well as expense associated with stock issued related to acquisitions. Stock-based compensation expense is based on the grant date fair value of the award. The cost is generally recognized over the vesting period on a straight-line basis. Forfeitures are recognized as incurred. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers the available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. If the Company determines that it is able to realize its deferred tax assets in the future in excess of the net recorded amount, the Company decreases the deferred tax asset valuation allowance, which reduces the provision for income taxes. Uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company recognizes interest and penalties, if any, related to uncertain tax positions in “Income tax expense (benefit)” on the Income Statement. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share (Basic EPS) attributable to common stockholders is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share (Diluted EPS) is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period, adjusted for the effects of dilutive issuances of shares of common stock, which predominantly include incremental shares issued for outstanding RSUs, PBRSUs, and stock options. PBRSUs are included in dilutive shares to the extent the pre-established performance targets have been or are estimated to be satisfied as of the reporting date. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding RSUs, PBRSUs, and stock options are excluded from the computation of Diluted EPS in periods in which the effect would be antidilutive. For periods with more than one class of common shares, the Company computes Basic and Diluted EPS using the two-class method, which is an allocation of net income (loss) among the holders of each class of common shares. Beneficial Conversion Feature The Company accounts for the beneficial conversion feature (BCF) on its Series A Preferred Stock in accordance with ASC 470-20, Debt with Conversion and Other Options |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities A VIE is a legal entity that has either a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. The Company’s variable interest arises from contractual, ownership or other monetary interests in the entity, which change with fluctuations in the fair value of the entity’s net assets. A VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance, and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates a VIE when it is deemed to be the primary beneficiary. The Company assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. |
Transfers of Financial Assets | Transfers of Financial Assets The Company accounts for transfers of financial assets as sales when it has surrendered control over the transferred assets. Control is generally considered to have been surrendered when the transferred assets have been legally isolated from the Company, the transferee has the right to pledge or exchange the assets without any significant constraints, and the Company has not entered into a repurchase agreement, does not hold unconditional call options and has not written put options on the transferred assets. In assessing whether control has been surrendered, the Company considers whether the transferee would be a consolidated affiliate and the impact of all arrangements or agreements made contemporaneously with, or in contemplation of the transfer, even if they were not entered into at the time of transfer. The Company measures gain or loss on sale of financial assets as the net proceeds received on the sale less the carrying amount of the loans sold. The net proceeds of the sale represent the fair value of any assets obtained or liabilities incurred as part of the transaction, including, but not limited to servicing assets, retained securities, and recourse obligations. Transfers of financial assets that do not qualify for sale accounting are reported as secured borrowings. Accordingly, the related assets remain on the Company’s Balance Sheet and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with related interest expense recognized over the life of the related assets. |
Adoption of New Accounting Standards and New Accounting Standards Net Yet Adopted | Adoption of New Accounting Standards The Company did not adopt any new accounting standards during the year ended December 31, 2021. New Accounting Standards Not Yet Adopted In March 2020, the FASB issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which, if certain criteria are met, provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The provisions of the new standard may be adopted as of the beginning of the reporting period when the election is made until December 31, 2022. The Company is evaluating the impact this ASU and is not expected to have a material impact on its financial position, results of operations, cash flows and disclosures. The Company has not elected an adoption date. In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity including convertible instruments and contracts on an entity’s own equity. The guidance allows for either full or modified retrospective adoption for fiscal periods beginning after December 15, 2021. The Company plans to adopt this ASU in the first quarter of 2022 under the |
Revenue from Contracts with Customers | Marketplace revenue consists of (i) origination fees, (ii) servicing fees, (iii) gain (loss) on sales of loans and (iv) net fair value adjustments, as described below. Origination Fees: Origination fees are primarily fees earned related to originating and issuing unsecured personal loans that are held for sale. Servicing Fees: The Company receives servicing fees to compensate it for servicing loans on behalf of investors, including managing payments and collections from borrowers and payments to those investors. The amount of servicing fee revenue earned is predominantly affected by the servicing rates paid by investors and the outstanding principal balance of loans serviced for investors. Servicing fee revenue related to loans sold also includes the associated change in fair value of servicing assets. Gain (Loss) on Sales of Loans: In connection with loan sales the Company recognizes a gain or loss on the sale of loans based on the level to which the contractual servicing fee is above or below an estimated market rate of servicing. Additionally, the Company recognizes transaction costs, if any, as a loss on sale of loans. Net Fair Value Adjustments: The Company records fair value adjustments on loans that are recorded at fair value, including gains or losses from sale prices in excess of or less than the loan principal amount sold. Revenue from Contracts with Customers The Company’s revenue from contracts with customers includes (i) transaction fees received from issuing bank partners and (ii) referral fees from third-party companies. Transaction fees are presented as a component of “Origination fees” in “Marketplace revenue” and referral fees are presented as a component of “Other non-interest income” on the Income Statement. Transaction Fees : The Company has a single performance obligation to provide customers access to the Company’s platform. Transaction fees are considered revenue from contracts with customers, including issuing banks and education and patient service providers. The Company recognizes transaction fee revenue each time a loan is facilitated by the Company, who provides loan application processing and loan facilitation services, resulting in a loan issued by the customers. Transaction fees are based on the initial principal amount of the loans facilitated by the Company and paid by the issuing banks and education and patient service providers each time a loan is issued by the issuing banks. Transaction fees to which the Company expects to be entitled are variable consideration because loan volume originated over the contractual term is not known at the contract’s inception. Referral Fees : |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Consideration Paid for Acquisition | On February 1, 2021, the Company completed the Acquisition. Upon closing, LendingClub acquired all outstanding voting equity interests of Radius in exchange for total consideration as follows: Cash paid $ 140,256 Fair value of common stock issued (1) 40,808 Consideration related to share-based payments (2) 5,742 Total consideration paid $ 186,806 (1) Calculated using the closing stock price of $10.85 on January 29, 2021, the most recent trading day preceding the Acquisition, multiplied by 3,761,114 shares issued pursuant to the Plan of Merger. (2) In connection with the Acquisition, LendingClub agreed to convert equity awards held by Radius employees into cash and LendingClub awards pursuant to the Plan of Merger. |
Schedule of Allocation of Consideration Paid | The following table presents an allocation of the total consideration paid to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed: Assets acquired: Cash and due from banks $ 18,184 Interest-bearing deposits in banks 650,052 Total cash and cash equivalents 668,236 Securities available for sale at fair value 259,037 Loans and leases held for investment 1,589,054 Allowance for loan and lease losses (12,440) Loans and leases held for investment, net 1,576,614 Property, equipment and software 1,926 Goodwill 75,717 Other assets 86,482 Total assets 2,668,012 Liabilities assumed: Non-interest bearing deposits 146,187 Interest-bearing deposits 1,862,272 Total deposits 2,008,459 Short-term borrowings 9,870 Advances from PPPLF 420,962 Other long-term debt 18,630 Other liabilities 23,285 Total liabilities 2,481,206 Total consideration paid $ 186,806 |
Schedule of Pro Forma Financial Information | The table below presents certain unaudited pro forma financial information for illustrative purposes only, for the years ended December 31, 2021 and 2020, as if the Acquisition took place on January 1, 2020. The pro forma information combines the historical results of Radius with the Company’s, adjusting for the estimated impact of certain fair value adjustments for the respective periods. The pro forma information does not reflect changes to the provision for credit losses resulting from recording loan assets as fair value, cost savings, or business synergies. As a result, actual amounts would have differed from the unaudited pro forma information presented and the differences could be significant. Year Ended December 31, 2021 2020 Total net revenue $ 825,701 $ 392,377 Consolidated net income (loss) $ 11,644 $ (190,120) |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments | The presentation shown below is reflective of what is used by the combined company under GAAP. As of December 31, 2020 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Assets Cash and cash equivalents $ 524,963 $ (524,963) $ — Cash and due from banks — 5,197 5,197 Interest bearing deposits in banks — 519,766 519,766 Total cash and cash equivalents — 524,963 524,963 Restricted cash 103,522 — 103,522 Securities available for sale at fair value 142,226 — 142,226 Loans held for investment at fair value 636,686 (636,686) — Loans held for investment by the Company at fair value 49,954 (49,954) — Loans held for sale by the Company at fair value 121,902 (121,902) — Loans held for sale at fair value — 121,902 121,902 Retail and certificate loans held for investment at fair value — 636,686 636,686 Other loans held for investment at fair value — 49,954 49,954 Accrued interest receivable 5,205 (5,205) — Property, equipment and software, net 96,641 — 96,641 Operating lease assets 74,037 (74,037) — Intangible assets, net 11,427 (11,427) — Other assets 96,730 90,669 187,399 Total assets $ 1,863,293 $ — $ 1,863,293 Liabilities and Equity Accounts payable $ 3,698 $ (3,698) $ — Accrued interest payable 4,572 (4,572) — Operating lease liabilities 94,538 (94,538) — Accrued expenses and other liabilities 101,457 (101,457) — Payable to investors 40,286 (40,286) — Credit facilities and securities sold under repurchase agreements 104,989 (104,989) — Short-term borrowings — 104,989 104,989 Retail notes, certificates and secured borrowings at fair value 636,774 — 636,774 Payable on Structured Program borrowings 152,808 — 152,808 Other liabilities — 244,551 244,551 Total liabilities 1,139,122 — 1,139,122 Equity Common stock 881 — 881 Additional paid-in capital 1,508,020 — 1,508,020 Accumulated deficit (786,214) — (786,214) Accumulated other comprehensive income 1,484 — 1,484 Total equity 724,171 — 724,171 Total liabilities and equity $ 1,863,293 $ — $ 1,863,293 Year Ended December 31, 2020 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Net Revenue Transaction fees $ 207,640 $ (207,640) $ — Interest income 209,694 (209,694) — Interest expense (141,503) 141,503 — Net fair value adjustments (117,247) 117,247 — Net interest income and fair value adjustments (49,056) 49,056 — Investor fees 111,864 (111,864) — Gain on sales of loans 30,812 (30,812) — Net investor revenue 93,620 (93,620) — Other revenue 13,442 (13,442) — Total net revenue 314,702 (314,702) — Non-interest income Marketplace revenue (1) — 245,314 245,314 Other non-interest income — 13,442 13,442 Total non-interest income — 258,756 258,756 Interest income Interest on loans held for sale — 72,876 72,876 Interest on retail and certificate loans held for investment at fair value — 115,952 115,952 Interest on other loans held for investment at fair value — 7,688 7,688 Interest on securities available for sale — 12,125 12,125 Other interest income — 1,053 1,053 Total interest income — 209,694 209,694 Interest expense Interest on short-term borrowings — 17,837 17,837 Interest on retail notes, certificates and secured borrowings — 115,952 115,952 Interest on Structured Program borrowings — 16,204 16,204 Interest on other long-term debt — 373 373 Total interest expense (2) — 150,366 150,366 Net interest income — 59,328 59,328 Total net revenue (3) — 318,084 318,084 Provision for credit losses (3) — 3,382 3,382 Operating expenses Sales and marketing 79,055 (79,055) — Origination and servicing 71,193 (71,193) — Engineering and product development 139,050 (139,050) — Other general and administrative 213,021 (213,021) — Total operating expenses 502,319 (502,319) — Non-interest expense Compensation and benefits — 252,517 252,517 Marketing — 51,518 51,518 Equipment and software — 26,842 26,842 Occupancy — 27,870 27,870 Depreciation and amortization — 54,030 54,030 Professional services — 41,780 41,780 Other non-interest expense — 47,762 47,762 Total non-interest expense — 502,319 502,319 Loss before income tax expense (187,617) — (187,617) Income tax benefit (79) — (79) Consolidated net loss $ (187,538) $ — $ (187,538) (1) See “ Note 3. Marketplace Revenue ” for additional detail. (2) The increase in total interest expense relates to valuation adjustments on Structured Program borrowings reclassified from net fair value adjustments to interest expense. (3) The increase in total net revenue from the historical presentation relates to credit valuation adjustments on AFS securities reclassified from net fair value adjustments to provision for credit losses. Year Ended December 31, 2019 LendingClub Historical Presentation Reclassification Adjustments LendingClub Reclassified Amounts Net Revenue Transaction fees $ 598,760 $ (598,760) $ — Interest income 345,345 (345,345) — Interest expense (246,587) 246,587 — Net fair value adjustments (144,990) 144,990 — Net interest income and fair value adjustments (46,232) 46,232 — Investor fees 124,532 (124,532) — Gain on sales of loans 67,716 (67,716) — Net investor revenue 146,016 (146,016) — Other revenue 13,831 (13,831) — Total net revenue 758,607 (758,607) — Non-interest income Marketplace revenue (1) — 646,735 646,735 Other non-interest income — 13,831 13,831 Total non-interest income — 660,566 660,566 Interest income Interest on loans held for sale — 109,493 109,493 Interest on retail and certificate loans held for investment at fair value — 214,395 214,395 Interest on other loans held for investment at fair value — 1,104 1,104 Interest on securities available for sale — 14,351 14,351 Other interest income — 6,002 6,002 Total interest income — 345,345 345,345 Interest expense Interest on short-term borrowings — 26,826 26,826 Interest on retail notes, certificates and secured borrowings — 214,395 214,395 Interest on Structured Program borrowings — 5,070 5,070 Interest on other long-term debt — 1,013 1,013 Total interest expense (2) — 247,304 247,304 Net interest income — 98,041 98,041 Total net revenue — 758,607 758,607 Provision for credit losses — — — Operating expenses Sales and marketing 279,423 (279,423) — Origination and servicing 103,403 (103,403) — Engineering and product development 168,380 (168,380) — Other general and administrative 238,292 (238,292) — Total operating expenses 789,498 (789,498) — Non-interest expense Compensation and benefits — 333,628 333,628 Marketing — 235,337 235,337 Equipment and software — 24,927 24,927 Occupancy — 29,367 29,367 Depreciation and amortization — 59,152 59,152 Professional services — 43,010 43,010 Other non-interest expense — 64,077 64,077 Total non-interest expense — 789,498 789,498 Loss before income tax expense (30,891) — (30,891) Income tax benefit (201) — (201) Consolidated net loss (30,690) — (30,690) Less: Income attributable to noncontrolling interests 55 — 55 LendingClub net loss $ (30,745) $ — $ (30,745) (1) See “ Note 3. Marketplace Revenue ” for additional detail. (2) The increase in total interest expense relates to valuation adjustments on Structured Program borrowings reclassified from net fair value adjustments to interest expense. |
Marketplace Revenue (Tables)
Marketplace Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Source | The following table presents components of marketplace revenue for the years presented: Year Ended December 31, 2021 2020 2019 Origination fees $ 416,839 $ 207,640 $ 598,760 Servicing fees 87,639 111,864 124,532 Gain on sales of loans 70,116 30,812 67,716 Net fair value adjustments (1) 3,986 (105,002) (144,273) Total marketplace revenue $ 578,580 $ 245,314 $ 646,735 (1) Certain prior period valuation adjustments on AFS securities and Structured Program borrowings were reclassified from net fair value adjustments to provision for credit losses and interest expense, respectively, to conform to the current period presentation. The following table presents the Company’s revenue from contracts with customers, disaggregated by revenue source for services transferred over time, for the years presented: Year Ended December 31, 2021 2020 2019 Transaction fees $ 32,673 $ 207,640 $ 598,760 Referral fees 14,234 5,011 5,474 Total revenue from contracts with customers $ 46,907 $ 212,651 $ 604,234 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) per Share | The following table details the computation of the Company’s basic and diluted EPS of common stock and Series A Preferred Stock: Year Ended December 31, 2021 2020 2019 Common Stock Preferred Stock (1) Common Stock Preferred Stock (1) Common Stock Basic EPS: Allocation of undistributed LendingClub net income (loss) $ 18,456 $ 124 $ (154,664) $ (32,874) $ (30,745) Deemed dividend — — (50,204) 50,204 — Net income (loss) attributable to stockholders $ 18,456 $ 124 $ (204,868) $ 17,330 $ (30,745) Weighted-average common shares – Basic 97,486,754 653,118 77,934,302 12,505,393 87,278,596 Basic EPS $ 0.19 $ 0.19 $ (2.63) $ 1.39 $ (0.35) Diluted EPS: Allocation of undistributed LendingClub net income (loss) $ 18,580 $ — $ (154,664) $ (32,874) $ (30,745) Deemed dividend — — (50,204) 50,204 — Net income (loss) attributable to stockholders $ 18,580 $ — $ (204,868) $ 17,330 $ (30,745) Weighted-average common shares – Diluted 102,147,353 — 77,934,302 12,505,393 87,278,596 Diluted EPS $ 0.18 $ 0.00 $ (2.63) $ 1.39 $ (0.35) (1) Presented on an as-converted basis. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the weighted-average common shares that were excluded from the Company’s diluted EPS computation because their effect would have been anti-dilutive for the periods presented: Year Ended December 31, 2021 2020 2019 Preferred stock — 12,505,393 — Stock options — 221,949 455,627 RSUs and PBRSUs — 299,747 59,812 Total — 13,027,089 515,439 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost, gross unrealized gains and losses, credit valuation allowance, and fair value of AFS securities were as follows: December 31, 2021 Amortized Gross Gross Credit ValuationAllowance Fair U.S. agency residential mortgage-backed securities $ 125,985 $ — $ (2,286) $ — $ 123,699 Asset-backed senior securities 28,057 72 — — 28,129 U.S. agency securities 26,902 1 (731) — 26,172 Other asset-backed securities 26,112 151 (130) — 26,133 Commercial mortgage-backed securities 26,649 1 (552) — 26,098 CLUB Certificate asset-backed securities 15,049 3,236 — — 18,285 Asset-backed subordinated securities 4,119 7,643 — — 11,762 Municipal securities 3,297 — (45) — 3,252 Total securities available for sale (1)(2) $ 256,170 $ 11,104 $ (3,744) $ — $ 263,530 December 31, 2020 Amortized Gross Gross Credit ValuationAllowance Fair Asset-backed senior securities $ 75,332 $ 67 $ (27) $ — $ 75,372 CLUB Certificate asset-backed securities 54,525 576 (772) (4,190) 50,139 Asset-backed subordinated securities 29,107 2,128 (174) (14,546) 16,515 Other securities 200 — — — 200 Total securities available for sale (1)(2) $ 159,164 $ 2,771 $ (973) $ (18,736) $ 142,226 (1) As of December 31, 2021 and 2020, $13.3 million and $119.3 million, respectively, of the asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company’s obligations as a “sponsor” under the U.S. Risk Retention Rules. (2) As of December 31, 2021 and 2020, includes $236.8 million and $133.5 million, respectively, of securities pledged as collateral at fair value. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | A summary of AFS securities with unrealized losses for which a credit valuation allowance has not been recorded aggregated by period of continuous unrealized loss, is as follows: Less than 12 months Total December 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized U.S. agency residential mortgage-backed securities $ 123,668 $ (2,286) $ — $ — $ 123,668 $ (2,286) U.S. agency securities 24,175 (731) — — 24,175 (731) Other asset-backed securities 13,224 (130) — — 13,224 (130) Commercial mortgage-backed securities 25,927 (552) — — 25,927 (552) Municipal securities 3,252 (45) — — 3,252 (45) Total securities with unrealized losses (1) $ 190,246 $ (3,744) $ — $ — $ 190,246 $ (3,744) Less than 12 months Total December 31, 2020 Fair Unrealized Fair Unrealized Fair Unrealized Asset-backed securities related to Structured Program transactions $ 26,678 $ (855) $ 6,052 $ (118) $ 32,730 $ (973) Total securities with unrealized losses (1) $ 26,678 $ (855) $ 6,052 $ (118) $ 32,730 $ (973) (1) The number of investment positions with unrealized losses at December 31, 2021 and 2020 totaled 145 and 55, respectively. |
Allowance for Credit Losses for Securities Available for Sale | The following tables present the activity in the credit valuation allowance for AFS securities, by major security type: Credit Valuation Allowance CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of December 31, 2020 $ (4,190) $ (14,546) $ (18,736) Reversal of credit loss expense 236 3,146 3,382 Reversal of allowance arising from PCD financial assets 3,954 11,400 15,354 Ending balance as of December 31, 2021 $ — $ — $ — Credit Valuation Allowance CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Beginning balance as of January 1, 2020 $ — $ — $ — Provision for credit loss expense (236) (3,146) (3,382) Allowance arising from PCD financial assets (3,954) (11,400) (15,354) Ending balance as of December 31, 2020 $ (4,190) $ (14,546) $ (18,736) |
Available-for-sale Securities Purchased with Credit Deterioration | ecurities purchased with credit deterioration were as follows: Year Ended December 31, 2020 Purchase price of PCD securities at acquisition $ 27,034 Credit valuation allowance on PCD securities at acquisition 15,354 Par value of acquired PCD securities at acquisition $ 42,388 |
Available-for-sale Securities by Contractual Maturity | The contractual maturities of AFS securities were as follows: December 31, 2021 Amortized Cost Fair Value Weighted- average Yield (1) Due after 5 years through 10 years: U.S. agency residential mortgage-backed securities $ 710 $ 703 Other asset-backed securities 1,092 1,109 Commercial mortgage-backed securities 4,204 4,092 U.S. agency securities 1,998 1,992 Municipal securities 627 620 Total due after 5 years through 10 years 8,631 8,516 1.59 % Due after 10 years: U.S. agency residential mortgage-backed securities 125,275 122,996 Other asset-backed securities 25,020 25,024 Commercial mortgage-backed securities 22,445 22,006 U.S. agency securities 24,904 24,180 Municipal securities 2,670 2,632 Total due after 10 years 200,314 196,838 1.57 % Asset-backed securities related to Structured Program transactions 47,225 58,176 18.89 % Total securities available for sale $ 256,170 $ 263,530 4.76 % (1) The weighted-average yield is computed using the amortized cost at December 31, 2021. |
Schedule of Proceeds and Realized Gain (Loss) | Proceeds and gross realized gains and losses from AFS securities were as follows: Year Ended December 31, 2021 2020 2019 Proceeds $ 106,192 $ 6,217 $ 12,548 Gross realized gains $ 708 $ 14 $ 9 Gross realized losses $ (952) $ (3) $ (1) |
Loans and Leases Held for Inv_2
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Notes and Certificates | The following table presents the components of each portfolio segment by class of financing receivable: December 31, 2021 Unsecured personal $ 1,804,578 Residential mortgages 151,362 Secured consumer 65,976 Total consumer loans held for investment 2,021,916 Equipment finance (1) 149,155 Commercial real estate 310,399 Commercial and industrial (2) 417,656 Total commercial loans and leases held for investment 877,210 Total loans and leases held for investment 2,899,126 Allowance for loan and lease losses (144,389) Loans and leases held for investment, net (3) $ 2,754,737 (1) Comprised of sales-type leases for equipment. See “ Note 18. Leases ” for additional information. (2) Includes $268.3 million of pledged loans under the Paycheck Protection Program (PPP). (3) As of December 31, 2021, the Company had $149.2 million in loans pledged as collateral under the FRB Discount Window. December 31, 2021 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 2,021,916 $ 128,812 $ 1,893,104 6.4 % Total commercial loans and leases held for investment (2) 877,210 15,577 861,633 1.8 % Total loans and leases held for investment (2) $ 2,899,126 $ 144,389 $ 2,754,737 5.0 % (1) Calculated as the ratio of allowance for loan and lease losses (ALLL) to loans and leases HFI. (2) Excluding the $268.3 million of PPP loans, the ALLL represented 2.6% of commercial loans and leases HFI and 5.5% of total loans and leases HFI. PPP loans are guaranteed by the Small Business Administration (SBA) and, therefore, the Company determined no ACL is required on these loans. |
Financing Receivable, Allowance for Credit Loss | The activity in the ACL by portfolio segment was as follows: Year Ended December 31, 2021 Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ — $ — $ — Credit loss expense for loans and leases held for investment (1) 136,789 4,162 140,951 Initial allowance for PCD loans acquired during the period (2) 603 11,837 12,440 Charge-offs (3) (8,789) (1,663) (10,452) Recoveries 209 1,241 1,450 Allowance for loan and lease losses, end of period $ 128,812 $ 15,577 $ 144,389 Reserve for unfunded lending commitments, beginning of period $ — $ — $ — Credit loss expense for unfunded lending commitments — 1,231 1,231 Reserve for unfunded lending commitments, end of period (4) $ — $ 1,231 $ 1,231 (1) Includes $6.9 million of credit loss expense for Radius loans at acquisition. (2) For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, an ACL of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million. (3) Unsecured personal loans are charged-off when a borrower is (i) contractually 120 days past due or (ii) two payments past due and has filed for bankruptcy or is deceased. (4) Relates to $110.8 million of unfunded commitments. |
Financing Receivable Credit Quality Indicators | The following table presents the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status and origination year: December 31, 2021 Term Loans and Leases by Origination Year 2021 2020 2019 2018 2017 Prior Within Revolving Period Total Unsecured personal Current $ 1,796,678 $ — $ — $ — $ — $ — $ — $ 1,796,678 30-59 days past due 3,624 — — — — — — 3,624 60-89 days past due 2,600 — — — — — — 2,600 90 or more days past due 1,676 — — — — — — 1,676 Total unsecured personal 1,804,578 — — — — — — 1,804,578 Residential mortgages Current 36,732 37,620 26,798 7,277 2,682 37,685 1,265 150,059 30-59 days past due — — — — — 142 — 142 60-89 days past due — — — — 92 — — 92 90 or more days past due — — — — 251 818 — 1,069 Total residential mortgages 36,732 37,620 26,798 7,277 3,025 38,645 1,265 151,362 Secured consumer Current 62,731 — — — — — 10 62,741 30-59 days past due 171 — — — — — — 171 60-89 days past due 53 — — — — — — 53 90 or more days past due — — — 2,629 382 — — 3,011 Total secured consumer 62,955 — — 2,629 382 — 10 65,976 Total consumer loans held for investment $ 1,904,265 $ 37,620 $ 26,798 $ 9,906 $ 3,407 $ 38,645 $ 1,275 $ 2,021,916 The following table presents the classes of financing receivables within the commercial portfolio segment by risk rating and origination year: December 31, 2021 Term Loans and Leases by Origination Year 2021 2020 2019 2018 2017 Prior Within Revolving Period Total Equipment finance Pass $ 52,440 $ 35,398 $ 26,918 $ 15,457 $ 6,184 $ 8,814 $ — $ 145,211 Special mention 1,531 — 1,810 — — — — 3,341 Substandard — — — 603 — — — 603 Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 53,971 35,398 28,728 16,060 6,184 8,814 — 149,155 Commercial real estate Pass 55,613 55,202 54,460 39,981 22,366 57,235 — 284,857 Special mention — 8,397 — 1,366 1,018 7,242 — 18,023 Substandard — — 277 2,496 — 4,179 — 6,952 Doubtful — — — — — — — — Loss — — — — — 567 — 567 Total commercial real estate 55,613 63,599 54,737 43,843 23,384 69,223 — 310,399 Commercial and industrial Pass 241,368 108,574 24,106 7,874 14,756 8,058 599 405,335 Special mention — — 2,207 463 1,467 40 — 4,177 Substandard — 1,122 862 1,858 1,525 1,571 87 7,025 Doubtful — — — — — — — — Loss — — — 52 4 1,063 — 1,119 Total commercial and industrial (1) 241,368 109,696 27,175 10,247 17,752 10,732 686 417,656 Total commercial loans and leases held for investment $ 350,952 $ 208,693 $ 110,640 $ 70,150 $ 47,320 $ 88,769 $ 686 $ 877,210 |
Past Due Financing Receivables | The following table presents an analysis of the past due loans and leases HFI within the commercial portfolio segment (1) : December 31, 2021 30-59 60-89 90 or More Total Days Past Due Equipment finance $ — $ — $ — $ — Commercial real estate 104 — 609 713 Commercial and industrial (1) — — 1,410 1,410 Total commercial loans and leases held for investment $ 104 $ — $ 2,019 $ 2,123 (1) Past due PPP loans are excluded from the table. The following table presents nonaccrual loans and leases: December 31, 2021 Nonaccrual (1) Nonaccrual with no related ACL (2) Unsecured personal $ 1,676 $ — Residential mortgages 1,373 1,373 Secured consumer 3,011 3,011 Total nonaccrual consumer loans held for investment 6,060 4,384 Equipment finance 603 — Commercial real estate 989 989 Commercial and industrial 2,333 1,061 Total nonaccrual commercial loans and leases held for investment 3,925 2,050 Total nonaccrual loans and leases held for investment $ 9,985 $ 6,434 (1) There were no loans that were 90 days or more past due and accruing as of December 31, 2021. (2) Subset of total nonaccrual loans and leases. December 31, 2021 Nonaccrual Nonaccrual Ratios (1) Total nonaccrual consumer loans held for investment $ 6,060 0.3 % Total nonaccrual commercial loans and leases held for investment 3,925 0.4 % Total nonaccrual loans and leases held for investment (2)(3) $ 9,985 0.3 % (1) Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI. (2) The ALLL represented 1446% of nonaccrual loans and leases as of December 31, 2021. (3) Nonaccruing loans and leases represented 0.4% of total loans and leases HFI, excluding PPP loans. |
Financing Receivable, Acquired Financial Assets With Credit Deterioration | Acquired PCD loans were as follows: December 31, 2021 Purchase price $ 337,118 Allowance for credit losses (1) 30,378 Discount attributable to other factors 12,204 Par value $ 379,700 (1) For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, an ACL of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million. |
Securitizations and Variable _2
Securitizations and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Summary of Select Information Related to VIEs | The following tables provide the classifications of assets and liabilities on the Balance Sheet for its transactions with consolidated and unconsolidated VIEs. Additionally, the assets and liabilities in the tables below exclude intercompany balances that eliminate in consolidation: December 31, 2021 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 13,462 $ — $ 13,462 Securities available for sale at fair value — 58,177 58,177 Loans held for sale at fair value 41,734 — 41,734 Retail and certificate loans held for investment at fair value 10,281 — 10,281 Other loans held for investment at fair value 20,929 — 20,929 Other assets 584 17,156 17,740 Total assets $ 86,990 $ 75,333 $ 162,323 Liabilities Retail notes, certificates and secured borrowings at fair value $ 10,281 $ — $ 10,281 Payable on Structured Program borrowings 65,451 — 65,451 Other liabilities 467 — 467 Total liabilities 76,199 — 76,199 Total net assets $ 10,791 $ 75,333 $ 86,124 December 31, 2020 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 15,983 $ — $ 15,983 Securities available for sale at fair value — 142,026 142,026 Loans held for sale at fair value 98,190 — 98,190 Retail and certificate loans held for investment at fair value 52,620 — 52,620 Other loans held for investment at fair value 50,102 — 50,102 Other assets 1,270 32,865 34,135 Total assets $ 218,165 $ 174,891 $ 393,056 Liabilities Retail notes, certificates and secured borrowings at fair value $ 52,620 $ — $ 52,620 Payable on Structured Program borrowings 152,808 — 152,808 Other liabilities 729 — 729 Total liabilities 206,157 — 206,157 Total net assets $ 12,008 $ 174,891 $ 186,899 The following tables present total unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary: December 31, 2021 Total VIE Assets Securities Available for Sale Other Assets Net Assets Carrying value $ 1,386,279 $ 58,177 $ 17,156 $ 75,333 Total exposure N/A $ 58,177 $ 17,156 $ 75,333 December 31, 2020 Total VIE Assets Securities Available for Sale Other Assets Net Assets Carrying value $ 3,233,416 $ 142,026 $ 32,865 $ 174,891 Total exposure N/A $ 142,026 $ 32,865 $ 174,891 N/A – Not applicable |
Summary of Activity Related to Personal Whole Loan Securitizations | The following table summarizes activity related to the Unconsolidated Trusts and Certificate Program trusts, with the transfers accounted for as a sale on the Company’s consolidated financial statements: Year Ended December 31, 2021 2020 Unconsolidated Trusts Unconsolidated Certificate Unconsolidated Trusts Unconsolidated Certificate Principal derecognized from loans securitized or sold (1) $ — $ — $ 255,203 $ 971,738 Net gains (losses) recognized from loans securitized or sold $ — $ — $ (20) $ 7,897 Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement (2) $ — $ — $ 12,707 $ 35,836 Cash proceeds from loans securitized or sold $ — $ — $ 237,764 $ 598,694 Cash proceeds from servicing and other administrative fees on loans securitized or sold $ 9,141 $ 14,445 $ 17,684 $ 26,822 Cash proceeds for interest received on senior securities and subordinated securities $ 2,978 $ 6,158 $ 4,559 $ 8,251 (1) Includes non-cash purchase and sale of loans requested by investors to facilitate a Structured Program transaction during the third quarter of 2020. (2) For Structured Program transactions, the Company retained asset-backed senior securities of $26.3 million, CLUB Certificate asset-backed securities of $18.3 million, and asset-backed subordinated securities of $4.0 million for the year ended December 31, 2020. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy of Assets and Liabilities Measured on a Recurring Basis | The following tables present the fair value hierarchy for assets and liabilities measured at fair value: December 31, 2021 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 142,370 $ 142,370 Retail and certificate loans held for investment at fair value — — 229,719 229,719 Other loans held for investment at fair value — — 21,240 21,240 Securities available for sale: U.S. agency residential mortgage-backed securities — 123,699 — 123,699 Asset-backed senior securities and subordinated securities — 28,129 11,762 39,891 U.S. agency securities — 26,172 — 26,172 Other asset-backed securities — 26,133 — 26,133 Commercial mortgage-backed securities — 26,098 — 26,098 CLUB Certificate asset-backed securities — — 18,285 18,285 Municipal securities — 3,252 — 3,252 Total securities available for sale — 233,483 30,047 263,530 Servicing assets — — 67,726 67,726 Other assets — 2,812 3,312 6,124 Total assets $ — $ 236,295 $ 494,414 $ 730,709 Liabilities: Retail notes, certificates and secured borrowings $ — $ — $ 229,719 $ 229,719 Payable on Structured Program borrowings — — 65,451 65,451 Other liabilities — — 12,911 12,911 Total liabilities $ — $ — $ 308,081 $ 308,081 December 31, 2020 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Fair Value Assets: Loans held for sale at fair value $ — $ — $ 121,902 $ 121,902 Retail and certificate loans held for investment at fair value — — 636,686 636,686 Other loans held for investment at fair value — — 49,954 49,954 Securities available for sale: Asset-backed senior securities and subordinated securities — 75,372 16,515 91,887 CLUB Certificate asset-backed securities — — 50,139 50,139 Other securities — 200 — 200 Total securities available for sale — 75,572 66,654 142,226 Servicing assets — — 56,347 56,347 Total assets $ — $ 75,572 $ 931,543 $ 1,007,115 Liabilities: Retail notes, certificates and secured borrowings $ — $ — $ 636,774 $ 636,774 Payable on Structured Program borrowings — — 152,808 152,808 Other liabilities — — 12,270 12,270 Total liabilities $ — $ — $ 801,852 $ 801,852 |
Schedule Of Fair Value Sensitivity Of Loans | The sensitivity of loans held for sale at fair value to adverse changes in key assumptions are as follows: December 31, 2021 December 31, 2020 Loans held for sale at fair value $ 142,370 $ 121,902 Expected weighted-average life (in years) 1.3 1.1 Discount rates 100 basis point increase $ (1,540) $ (1,151) 200 basis point increase $ (3,055) $ (2,282) Expected credit loss rates on underlying loans 10% adverse change $ (608) $ (1,099) 20% adverse change $ (1,236) $ (2,220) Expected prepayment rates 10% adverse change $ (1,450) $ (273) 20% adverse change $ (2,997) $ (556) |
Fair Value of Assets Measured on a Recurring Basis | The following tables present additional information about Level 3 loans held for sale at fair value on a recurring basis: Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2019 $ 747,394 $ (25,039) $ 722,355 Purchases 1,568,844 (6) 1,568,838 Transfers to loans held for investment (41,431) — (41,431) Sales (1,907,446) 87,723 (1,819,723) Principal payments and retirements (207,483) — (207,483) Charge-offs, net of recoveries (27,278) 25,627 (1,651) Change in fair value recorded in earnings — (99,003) (99,003) Balance at December 31, 2020 $ 132,600 $ (10,698) $ 121,902 Originations and purchases 7,507,695 (1,629) 7,506,066 Sales (7,386,633) 5,124 (7,381,509) Principal payments and retirements (98,530) — (98,530) Charge-offs, net of recoveries (7,939) 3,441 (4,498) Change in fair value recorded in earnings — (1,061) (1,061) Balance at December 31, 2021 $ 147,193 $ (4,823) $ 142,370 The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis: Fair value at December 31, 2019 $ 89,680 Issuances (1) 33,990 Change in fair value, included in Marketplace Revenue (58,730) Other net changes included in Deferred Revenue (8,593) Fair value at December 31, 2020 $ 56,347 Issuances (1) 69,075 Change in fair value, included in Marketplace Revenue (56,561) Other net changes included in Deferred Revenue (1,135) Fair value at December 31, 2021 $ 67,726 (1) Represents the gains or losses on sales of the related loans. |
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for servicing assets relating to loans sold to investors: December 31, 2021 December 31, 2020 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rates 7.5 % 16.4 % 10.0 % 4.8 % 16.4 % 9.9 % Net cumulative expected loss rates (1) 2.4 % 26.4 % 10.2 % 4.5 % 26.3 % 12.5 % Cumulative expected prepayment rates (1) 32.1 % 45.9 % 38.4 % 27.0 % 38.9 % 31.2 % Total market servicing rates (% per annum on outstanding principal balance) (2) 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % (1) Expressed as a percentage of the original principal balance of the loan. (2) Includes collection fees estimated to be paid to a hypothetical third-party servicer. |
Fair Value Disclosure And Measurement | The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions: December 31, 2021 December 31, 2020 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Servicing rate increase by 0.10% $ (9,495) $ (7,379) Servicing rate decrease by 0.10% $ 9,495 $ 7,379 |
Fair Value Sensitivity of Servicing Assets | The following table presents the fair value of servicing assets to adverse changes in key assumptions: December 31, 2021 December 31, 2020 Fair value of Servicing Assets $ 67,726 $ 56,347 Discount rates 100 basis point increase $ (558) $ (455) 200 basis point increase $ (1,115) $ (911) Expected loss rates 10% adverse change $ (693) $ (346) 20% adverse change $ (1,386) $ (691) Expected prepayment rates 10% adverse change $ (2,401) $ (1,596) 20% adverse change $ (4,802) $ (3,192) |
Fair Value, by Balance Sheet Grouping | The following tables present the fair value hierarchy for financial instruments, assets, and liabilities not recorded at fair value: December 31, 2021 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale $ 248,878 $ — $ — $ 251,101 $ 251,101 Loans and leases held for investment, net 2,754,737 — — 2,964,691 2,964,691 Other assets 18,274 — 15,630 2,644 18,274 Total assets $ 3,021,889 $ — $ 15,630 $ 3,218,436 $ 3,234,066 Liabilities: Deposits (1) $ 68,405 $ — $ — $ 68,405 $ 68,405 Short-term borrowings 27,780 — 17,595 10,185 27,780 Advances from PPPLF 271,933 — — 271,933 271,933 Other long-term debt 15,455 — — 15,455 15,455 Other liabilities 51,655 — 22,187 29,468 51,655 Total liabilities $ 435,228 $ — $ 39,782 $ 395,446 $ 435,228 (1) Excludes deposit liabilities with no defined or contractual maturities. December 31, 2020 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Total cash and cash equivalents (1) $ 524,963 $ — $ 524,963 $ — $ 524,963 Restricted cash (1) 103,522 — 103,522 — 103,522 Other assets 914 — 914 — 914 Total assets $ 629,399 $ — $ 629,399 $ — $ 629,399 Liabilities: Short-term borrowings $ 104,989 $ — $ 65,121 $ 39,868 $ 104,989 Other liabilities 57,536 — 43,984 13,552 57,536 Total liabilities $ 162,525 $ — $ 109,105 $ 53,420 $ 162,525 (1) Carrying amount approximates fair value due to the short maturity of these financial instruments. |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software | Property, equipment and software, net, consist of the following: December 31, 2021 2020 Internally developed software (1) $ 96,171 $ 101,953 Leasehold improvements 36,556 35,140 Computer equipment 29,598 27,030 Purchased software 22,403 19,004 Furniture and fixtures 8,346 8,203 Construction in progress 3,319 2,761 Total property, equipment and software 196,393 194,091 Accumulated depreciation and amortization (98,397) (97,450) Total property, equipment and software, net $ 97,996 $ 96,641 (1) Includes $14.7 million and $13.9 million of software development in progress as of December 31, 2021 and 2020, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The gross and net carrying values and accumulated amortization were as follows: December 31, 2021 2020 Gross Carrying Value $ 54,500 $ 39,500 Accumulated Amortization (33,319) (28,073) Net Carrying Value $ 21,181 $ 11,427 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The expected future amortization expense for intangible assets as of December 31, 2021, is as follows: 2022 $ 4,847 2023 4,198 2024 3,549 2025 2,901 2026 2,252 Thereafter 3,434 Total $ 21,181 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: December 31, 2021 2020 Operating lease assets $ 77,316 $ 74,037 Servicing assets (1) 70,370 56,347 Nonmarketable equity investments 31,726 8,275 Intangible assets, net (2) 21,181 11,427 Other 101,953 37,313 Total other assets $ 302,546 $ 187,399 (1) Loans underlying servicing assets had a total outstanding principal balance of $10.3 billion and $10.1 billion as of December 31, 2021 and 2020, respectively. (2) See “ Note 10. Goodwill and Intangible Assets ” for additional detail. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Deposits | Deposits consist of the following: December 31, Interest-bearing deposits: Checking accounts $ 1,993,809 Savings and money market accounts 856,989 Certificates of deposit 68,405 Total $ 2,919,203 Noninterest-bearing deposits 216,585 Total deposits $ 3,135,788 Total certificates of deposit at December 31, 2021 are scheduled to mature as follows: 2022 $ 53,740 2023 13,579 2024 462 2025 178 2026 446 Total certificates of deposit $ 68,405 The following table presents the amount of certificates of deposit with denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand, segregated by time remaining until maturity, as of December 31, 2021: Three months or less Over 3 months through Over 6 months through Over Total Certificates of deposit $ 12,338 $ 806 $ 250 $ 588 $ 13,982 |
Short-term Borrowings and Lon_2
Short-term Borrowings and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Principal Balance of Notes, Certificates and Secured Borrowings at Fair Value | The following table provides the balances of retail notes, certificates and secured borrowings at fair value as of the periods indicated: December 31, 2021 2020 Retail notes $ 219,435 $ 583,219 Certificates 10,281 52,620 Secured borrowings 3 935 Total retail notes, certificates and secured borrowings $ 229,719 $ 636,774 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Other Liabilities | Other liabilities consist of the following: December 31, 2021 2020 Accounts payable and accrued expenses $ 100,972 $ 46,885 Operating lease liabilities 91,588 94,538 Payable to investors 22,187 40,286 Other 89,204 62,842 Total other liabilities $ 303,951 $ 244,551 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) represents other cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) were as follows: Year Ended December 31, 2021 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ 5,562 $ — $ 5,562 Other comprehensive income (loss) $ 5,562 $ — $ 5,562 Year Ended December 31, 2020 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ 2,044 $ (5) $ 2,049 Other comprehensive income (loss) $ 2,044 $ (5) $ 2,049 Year Ended December 31, 2019 Before Tax Tax Effect Net of Tax Change in net unrealized gain (loss) on securities available for sale $ (526) $ 216 $ (742) Other comprehensive income (loss) $ (526) $ 216 $ (742) |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) balances were as follows: Total Balance at December 31, 2019 $ (565) Change in net unrealized gain (loss) on securities available for sale 2,049 Balance at December 31, 2020 $ 1,484 Change in net unrealized gain (loss) on securities available for sale 5,562 Balance at December 31, 2021 $ 7,046 |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Shares of common stock reserved for future issuance was as follows: December 31, 2021 2020 Available for future RSU, PBRSU and stock option grants 15,172,055 12,552,761 Unvested RSUs, PBRSUs and stock options outstanding 13,029,414 14,631,526 Available for ESPP 5,161,860 4,134,033 Total reserved for future issuance 33,363,329 31,318,320 |
Total Stock-based Compensation Expense | Stock-based compensation expense was as follows for the periods presented: Year Ended December 31, 2021 2020 2019 RSUs and PBRSUs $ 66,552 $ 60,745 $ 70,772 Stock options 599 788 2,383 ESPP (1) — — 484 Total stock-based compensation expense $ 67,151 $ 61,533 $ 73,639 (1) Purchases through the Company’s employee stock purchase plan (ESPP) were suspended effective upon the completion of the offering period on May 10, 2019. |
Schedule of RSU Activity | The following table summarizes the activities for the Company’s RSUs: Number Weighted- Unvested at December 31, 2020 11,395,112 $ 11.26 Granted 5,792,679 $ 14.39 Vested (5,033,976) $ 11.98 Forfeited/expired (2,450,064) $ 12.58 Unvested at December 31, 2021 9,703,751 $ 12.44 |
Schedule of PBRSU Activity | The following table summarizes the activities for the Company’s PBRSUs: Number Weighted- Unvested at December 31, 2020 1,441,311 $ 5.31 Granted 568,285 $ 22.54 Vested (79,604) $ 22.59 Forfeited/expired (158,123) $ 12.41 Unvested at December 31, 2021 1,771,869 $ 9.72 |
Schedule of Options Activity | The following table summarizes the activities for the Company’s stock options: Number of Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) Outstanding at December 31, 2020 1,795,116 $ 29.99 Granted 188,626 $ 5.32 Exercised (264,826) $ 9.22 Forfeited/Expired (165,109) $ 15.12 Outstanding at December 31, 2021 1,553,807 $ 32.12 3.06 $ 6,913 Exercisable at December 31, 2021 1,511,469 $ 32.87 2.96 $ 6,115 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company’s closing stock price of $24.18 as reported on the New York Stock Exchange on December 31, 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax benefit consisted of the following for the periods shown below: Year Ended December 31, 2021 2020 2019 Current: Federal $ — $ (1) $ (141) State 3,541 (78) (60) Total current tax expense (benefit) $ 3,541 $ (79) $ (201) Deferred: Federal $ (2,066) $ — $ — State (1,611) — — Total deferred benefit $ (3,677) $ — $ — Income tax benefit $ (136) $ (79) $ (201) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income taxes expected at the statutory federal income tax rate and income tax benefit is as follows: Year Ended December 31, 2021 2020 2019 Tax at federal statutory rate $ 3,873 $ (39,399) $ (6,499) State tax, net of federal tax benefit 1,524 (81) (60) Stock-based compensation expense (11,839) 8,044 4,773 Research and development tax credits (4,354) (994) (2,336) Change in valuation allowance 7,867 29,728 (802) Change in unrecognized tax benefit 2,177 497 1,168 Non-deductible expenses 742 2,278 3,250 Other (126) (152) 305 Income tax benefit $ (136) $ (79) $ (201) |
Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities were: December 31, 2021 2020 Deferred tax assets: Net operating loss (NOL) carryforwards $ 144,510 $ 163,381 Allowance for loan and lease losses 41,170 — Stock-based compensation 11,721 10,218 Reserves and accruals 13,051 15,652 Operating lease liabilities 25,807 28,032 Goodwill 14,737 17,375 Intangible assets — 3,151 Tax credit carryforwards 19,339 18,215 Other 3,492 868 Total deferred tax assets 273,827 256,892 Valuation allowance (223,367) (211,228) Deferred tax assets – net of valuation allowance $ 50,460 $ 45,664 Deferred tax liabilities: Internally developed software $ (17,431) $ (16,956) Servicing fees (2,452) (2,780) Operating lease assets (21,614) (22,048) Leases (6,961) — Intangible assets (440) — Change in tax method — (1,769) Other (1,562) (2,111) Total deferred tax liabilities $ (50,460) $ (45,664) Deferred tax asset (liability) – net $ — $ — |
Changes in Unrecognized Tax Benefit | A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows: Year Ended December 31, 2021 2020 2019 Beginning balance $ 17,626 $ 15,998 $ 13,377 Gross increase for tax positions related to prior years 1,272 — — Gross increase for tax positions related to the current year 3,614 1,628 2,621 Ending balance $ 22,512 $ 17,626 $ 15,998 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Sales-type Lease, Lease Income | The components of Equipment Finance assets are as follows: December 31, 2021 Lease receivables $ 122,927 Unguaranteed residual asset values 36,837 Unearned income (10,989) Deferred fees 380 Total $ 149,155 |
Future Minimum Payments to be Received, Fiscal Year Maturity | Future minimum lease payments based on maturity of the Company’s lessor arrangements as of December 31, 2021 were as follows: 2022 $ 43,907 2023 35,803 2024 27,374 2025 16,235 2026 9,084 Thereafter 4,382 Total lease payments $ 136,785 Discount effect (13,858) Present value of future minimum lease payments $ 122,927 |
Supplemental Balance Sheet Information | Balance sheet information related to leases was as follows: ROU Assets and Lease Liabilities Balance Sheet Classification December 31, 2021 December 31, 2020 Operating lease assets Other assets $ 77,316 $ 74,037 Operating lease liabilities (1) Other liabilities $ 91,588 $ 94,538 (1) The difference between operating lease assets and operating lease liabilities is the unamortized balance of deferred rent. |
Lease Costs | Components of net lease costs were as follows: Year Ended December 31, Net Lease Costs Income Statement Classification 2021 2020 2019 Operating lease costs (1) Occupancy $ (18,773) $ (17,346) $ (19,502) Sublease revenue Other non-interest income 6,149 6,146 4,637 Net lease costs $ (12,624) $ (11,200) $ (14,865) |
Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s operating leases was as follows: Year Ended December 31, 2021 2020 2019 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ 12,914 $ 84 $ 15,277 (1) Represents non-cash activity and, accordingly, is not reflected on the Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease ROU asset. |
Future Minimum Undiscounted Lease Payments | The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of December 31, 2021 were as follows: Operating Lease Sublease Net 2022 $ 15,947 $ (2,918) $ 13,029 2023 12,465 — 12,465 2024 12,810 — 12,810 2025 13,163 — 13,163 2026 13,375 — 13,375 Thereafter 48,975 — 48,975 Total lease payments $ 116,735 $ (2,918) $ 113,817 Discount effect 25,147 Present value of future minimum lease payments $ 91,588 |
Weighted-average Remaining Lease Term and Discount Rate | The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows: Lease Term and Discount Rate December 31, 2021 Weighted-average remaining lease term (in years) 8.43 Weighted-average discount rate 5.42 % |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table summarizes LC Bank’s regulatory capital amounts and ratios (in millions): LendingClub Bank Required Minimum plus Required CCB for Non-Leverage Ratios December 31, 2021 Amount Ratio CET1 capital (1) $ 523.7 16.7 % 7.0 % Tier 1 capital $ 523.7 16.7 % 8.5 % Total capital $ 563.7 18.0 % 10.5 % Tier 1 leverage $ 523.7 14.3 % 4.0 % Risk-weighted assets $ 3,130.4 N/A N/A Quarterly adjusted average assets $ 3,667.7 N/A N/A N/A – Not applicable (1) Consists of common stockholders’ equity as defined under U.S. GAAP and certain adjustments made in accordance with regulatory capital guidelines, including the addition of the CECL transitional benefit and deductions for goodwill and other intangible assets. The following table presents the regulatory capital and ratios of the Company (in millions): LendingClub Required Minimum plus Required CCB for Non-Leverage Ratios December 31, 2021 Amount Ratio CET1 capital (1) $ 710.0 21.3 % 7.0 % Tier 1 capital $ 710.0 21.3 % 8.5 % Total capital $ 767.9 23.0 % 10.5 % Tier 1 leverage $ 710.0 16.5 % 4.0 % Risk-weighted assets $ 3,333.2 N/A N/A Quarterly adjusted average assets $ 4,301.7 N/A N/A N/A – Not applicable (1) Consists of common stockholders’ equity as defined under U.S. GAAP and certain adjustments made in accordance with regulatory capital guidelines, including the addition of the CECL transitional benefit and deductions for goodwill and other intangible assets. |
Other Non-interest Income and_2
Other Non-interest Income and Non-interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Other non-interest income consists of the following: Year Ended December 31, 2021 2020 2019 Referral revenue $ 14,234 $ 5,011 $ 5,474 Realized losses on sales of securities available for sale and other investments (93) 11 (8) Other 13,078 8,420 8,365 Total other non-interest income $ 27,219 $ 13,442 $ 13,831 Other non-interest expense consists of the following: Year Ended December 31, 2021 2020 2019 Consumer credit services $ 16,214 $ 13,229 $ 26,707 Other 45,044 34,533 37,370 Total other non-interest expense $ 61,258 $ 47,762 $ 64,077 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for the segments is presented in the following table: LendingClub LendingClub Intercompany Consolidated Total Eleven Months Ended December 31, Year Ended December 31, Eleven Months Ended December 31, Year Ended December 31, 2021 2021 2020 2019 2021 2021 2020 2019 Non-interest income: Marketplace revenue $ 462,821 $ 115,759 $ 245,314 $ 646,735 $ — $ 578,580 $ 245,314 $ 646,735 Other non-interest income 94,953 16,718 13,442 13,831 (84,452) 27,219 13,442 13,831 Total non-interest income 557,774 132,477 258,756 660,566 (84,452) 605,799 258,756 660,566 Interest income: Interest income 210,739 82,093 209,694 345,345 — 292,832 209,694 345,345 Interest expense (8,412) (71,589) (150,366) (247,304) — (80,001) (150,366) (247,304) Net interest income 202,327 10,504 59,328 98,041 — 212,831 59,328 98,041 Total net revenue 760,101 142,981 318,084 758,607 (84,452) 818,630 318,084 758,607 Reversal of (provision for) credit losses (142,182) 3,382 (3,382) — — (138,800) (3,382) — Non-interest expense (547,799) (198,039) (502,319) (789,498) 84,452 (661,386) (502,319) (789,498) Income (Loss) before income tax benefit (expense) 70,120 (51,676) (187,617) (30,891) — 18,444 (187,617) (30,891) Income tax benefit (expense) 9,171 44,013 79 201 (53,048) 136 79 201 Consolidated net income (loss) $ 79,291 $ (7,663) $ (187,538) $ (30,690) $ (53,048) $ 18,580 $ (187,538) $ (30,690) Capital expenditures $ 32,602 $ 1,811 $ 31,147 $ 50,668 $ — $ 34,413 $ 31,147 $ 50,668 Depreciation and amortization $ 4,569 $ 39,716 $ 54,030 $ 59,152 $ — $ 44,285 $ 54,030 $ 59,152 LendingClub Bank LendingClub Corporation Intercompany Consolidated Total December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Assets Total cash and cash equivalents $ 659,919 $ — $ 88,268 $ 524,963 $ (61,061) $ — $ 687,126 $ 524,963 Restricted cash — — 76,540 103,522 (80) — 76,460 103,522 Securities available for sale at fair value 205,730 — 57,800 142,226 — — 263,530 142,226 Loans held for sale 335,449 — 55,799 121,902 — — 391,248 121,902 Loans and leases held for investment, net 2,754,737 — — — — — 2,754,737 — Retail and certificate loans held for investment at fair value — — 229,719 636,686 — — 229,719 636,686 Other loans held for investment at fair value — — 21,240 49,954 — — 21,240 49,954 Property, equipment and software, net 36,424 — 61,572 96,641 — — 97,996 96,641 Investment in subsidiary — — 557,577 — (557,577) — — — Goodwill 75,717 — — — — — 75,717 — Other assets 254,075 — 168,042 187,399 (119,571) — 302,546 187,399 Total assets 4,322,051 — 1,316,557 1,863,293 (738,289) — 4,900,319 1,863,293 Liabilities and Equity Total deposits 3,196,929 — — — (61,141) — 3,135,788 — Short-term borrowings 165 — 27,615 104,989 — — 27,780 104,989 Advances from PPPLF 271,933 — — — — — 271,933 — Retail notes, certificates and secured borrowings at fair value — — 229,719 636,774 — — 229,719 636,774 Payable on Structured Program borrowings — — 65,451 152,808 — — 65,451 152,808 Other long-term debt — — 15,455 — — — 15,455 — Other liabilities 218,775 — 150,727 244,551 (65,551) — 303,951 244,551 Total liabilities 3,687,802 — 488,967 1,139,122 (126,692) — 4,050,077 1,139,122 Total equity 634,249 — 827,590 724,171 (611,597) — 850,242 724,171 Total liabilities and equity $ 4,322,051 $ — $ 1,316,557 $ 1,863,293 $ (738,289) $ — $ 4,900,319 $ 1,863,293 |
LendingClub Corporation _ Par_2
LendingClub Corporation – Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Condensed Statements of Operations | Statement of Operations Year Ended December 31, 2021 Non-interest income: Marketplace revenue $ 115,759 Other non-interest income 16,718 Total non-interest income 132,477 Interest income: Interest on loans held for sale at fair value 11,025 Interest on retail and certificate loans held for investment at fair value 57,684 Interest on other loans held for investment at fair value 4,436 Interest on securities available for sale 8,922 Other interest income 26 Total interest income 82,093 Interest expense: Interest on short-term borrowings 3,676 Interest on retail notes, certificates and secured borrowings 57,684 Interest on Structured Program borrowings 9,638 Interest on other long-term debt 591 Total interest expense 71,589 Net interest income 10,504 Total net revenue 142,981 Reversal of credit losses (3,382) Non-interest expense: Compensation and benefits 31,010 Marketing 5,460 Equipment and software 2,459 Occupancy 17,751 Depreciation and amortization 39,716 Professional services 14,666 Other non-interest expense 86,977 Total non-interest expense 198,039 Loss before income tax benefit (51,676) Income tax benefit 44,013 Loss before undistributed earnings of subsidiary (7,663) Equity in undistributed earnings of subsidiary 79,291 Net income $ 71,628 |
Condensed Statement of Comprehensive Income | Statement of Comprehensive Income Year Ended December 31, 2021 Net income $ 71,628 Other comprehensive income, net of tax: Net unrealized gain on securities available for sale 9,153 Equity in other comprehensive loss of subsidiary (2,619) Other comprehensive income, net of tax 6,534 Total comprehensive income $ 78,162 |
Condensed Balance Sheets | Balance Sheet December 31, 2021 Assets Cash and due from banks $ 58,284 Interest-bearing deposits in banks 29,984 Total cash and cash equivalents 88,268 Restricted cash 76,540 Securities available for sale at fair value ($47,225 at amortized cost) 57,800 Loans held for sale at fair value 55,799 Retail and certificate loans held for investment at fair value 229,719 Other loans held for investment at fair value 21,240 Property, equipment and software, net 61,572 Investment in subsidiary 634,249 Other assets 168,042 Total assets $ 1,393,229 Liabilities and Equity Short-term borrowings 27,615 Retail notes, certificates and secured borrowings at fair value 229,719 Payable on Structured Program borrowings 65,451 Other long-term debt 15,455 Other liabilities 150,727 Total liabilities 488,967 Equity Common stock, $0.01 par value; 180,000,000 shares authorized; 101,043,924 shares issued and outstanding 1,010 Additional paid-in capital 1,609,820 Accumulated deficit (714,586) Accumulated other comprehensive income 8,018 Total equity 904,262 Total liabilities and equity $ 1,393,229 |
Condensed Statements of Cash Flows | Statement of Cash Flows Year Ended December 31, 2021 Cash Flows from Operating Activities: Parent company net income $ 71,628 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (79,291) Income tax benefit (44,013) Net fair value adjustments (5,936) Reversal of credit losses (3,382) Change in fair value of loan servicing assets 37,138 Stock-based compensation, net 14,506 Depreciation, amortization, and accretion 39,935 Gain on sales of loans (3,372) Other, net 9,107 Net change to loans held for sale 90,609 Net change in operating assets and liabilities: Other assets (29,556) Other liabilities (95,737) Net cash provided by operating activities 1,636 Cash Flows from Investing Activities: Acquisition of company (145,344) Payments for investments in and advances to subsidiary (250,001) Cash received from Acquisition 658 Net change in loans and leases 1,360 Net decrease in retail and certificate loans 437,870 Proceeds from maturities and paydowns of securities available for sale 103,258 Purchases of property, equipment and software, net (1,811) Other investing activities 8,146 Net cash provided by investing activities 154,136 Cash Flows from Financing Activities: Principal payments on Structured Program borrowings (90,187) Principal payments on retail notes and certificates (438,032) Principal payments on short-term borrowings (81,935) Other financing activities (9,295) Net cash used for financing activities (619,449) Net Decrease in Cash, Cash Equivalents and Restricted Cash (463,677) Cash, Cash Equivalents and Restricted Cash, Beginning of Period 628,485 Cash, Cash Equivalents and Restricted Cash, End of Period $ 164,808 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Class of Stock [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Maximum | |
Class of Stock [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Business Acquisition - Consider
Business Acquisition - Consideration (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 29, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||||
Cash paid | [1] | $ 145,344 | $ 0 | $ 0 | |
LendingClub | |||||
Business Acquisition [Line Items] | |||||
Cash paid | $ 145,344 | ||||
Radius Bancorp, Inc | |||||
Business Acquisition [Line Items] | |||||
Cash paid | $ 140,256 | ||||
Fair value of common stock issued | 40,808 | ||||
Consideration related to share-based payments | 5,742 | ||||
Total consideration paid | $ 186,806 | ||||
Stocks issued in acquisition (in shares) | 3,761,114 | ||||
Radius Bancorp, Inc | LendingClub | |||||
Business Acquisition [Line Items] | |||||
LendingClub share price (in dollars per share) | $ 10.85 | ||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Business Acquisition - Purchase
Business Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jan. 29, 2021 | Dec. 31, 2020 |
Assets acquired: | |||
Goodwill | $ 75,717 | $ 0 | |
Radius Bancorp, Inc | |||
Assets acquired: | |||
Cash and due from banks | $ 18,184 | ||
Interest-bearing deposits in banks | 650,052 | ||
Total cash and cash equivalents | 668,236 | ||
Securities available for sale at fair value | 259,037 | ||
Loans and leases held for investment | 1,589,054 | ||
Allowance for loan and lease losses | (12,440) | ||
Loans and leases held for investment, net | 1,576,614 | ||
Property, equipment and software | 1,926 | ||
Goodwill | 75,717 | ||
Other assets | 86,482 | ||
Total assets | 2,668,012 | ||
Liabilities assumed: | |||
Non-interest bearing deposits | 146,187 | ||
Interest-bearing deposits | 1,862,272 | ||
Total deposits | 2,008,459 | ||
Short-term borrowings | 9,870 | ||
Advances from PPPLF | 420,962 | ||
Other long-term debt | 18,630 | ||
Other liabilities | 23,285 | ||
Total liabilities | 2,481,206 | ||
Total consideration paid | $ 186,806 |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Details) - USD ($) $ in Thousands | Jan. 29, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 75,717 | $ 0 | ||||
Initial allowance for PCD assets acquired during the period at acquisition date | 30,378 | |||||
Total net revenue | $ 818,630 | [1] | $ 318,084 | [1] | $ 758,607 | |
Core Deposit Intangibles | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, amortized period | 10 years | |||||
Radius Bancorp, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 75,717 | |||||
Business combination, acquisition related costs | $ 16,000 | |||||
Total net revenue | $ 73,600 | |||||
Radius Bancorp, Inc | Non-PCD Loans | ||||||
Business Acquisition [Line Items] | ||||||
Initial allowance for PCD assets acquired during the period at acquisition date | 6,900 | |||||
Radius Bancorp, Inc | PCD Loans | ||||||
Business Acquisition [Line Items] | ||||||
Initial allowance for PCD assets acquired during the period at acquisition date | $ 12,400 | |||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Business Acquisition - Pro Form
Business Acquisition - Pro Forma Information (Details) - Radius Bancorp, Inc - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total net revenue | $ 825,701 | $ 392,377 |
Consolidated net income (loss) | $ 11,644 | $ (190,120) |
Business Acquisition - Summary
Business Acquisition - Summary of Balance Sheet Reclassification Adjustments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and due from banks | $ 35,670 | $ 5,197 | |
Interest-bearing deposits in banks | 651,456 | 519,766 | |
Total cash and cash equivalents | 687,126 | 524,963 | |
Restricted cash | [1] | 76,460 | 103,522 |
Securities available for sale at fair value | 263,530 | 142,226 | |
Loans held for sale at fair value | 142,370 | 121,902 | |
Retail and certificate loans held for investment at fair value | [1] | 229,719 | 636,686 |
Other loans held for investment at fair value | [1] | 21,240 | 49,954 |
Property, equipment and software, net | 97,996 | 96,641 | |
Operating lease assets | 77,316 | 74,037 | |
Intangible assets, net | 21,181 | ||
Other assets | [1] | 302,546 | 187,399 |
Total assets | 4,900,319 | 1,863,293 | |
Liabilities and Equity | |||
Operating lease liabilities | 91,588 | 94,538 | |
Payable to investors | 22,187 | 40,286 | |
Short-term borrowings | 27,780 | 104,989 | |
Retail notes, certificates and secured borrowings at fair value | [1] | 229,719 | 636,774 |
Payable on Structured Program borrowings | [1] | 65,451 | 152,808 |
Other liabilities | [1] | 303,951 | 244,551 |
Total liabilities | 4,050,077 | 1,139,122 | |
Equity | |||
Common stock | 1,010 | 881 | |
Additional paid-in capital | 1,609,820 | 1,508,020 | |
Accumulated deficit | (767,634) | (786,214) | |
Accumulated other comprehensive income | 7,046 | 1,484 | |
Total liabilities and equity | 4,900,319 | 1,863,293 | |
LendingClub | |||
Assets | |||
Cash and cash equivalents | 0 | ||
Cash and due from banks | 58,284 | 5,197 | |
Interest-bearing deposits in banks | 29,984 | 519,766 | |
Total cash and cash equivalents | 88,268 | 524,963 | |
Restricted cash | 76,540 | 103,522 | |
Securities available for sale at fair value | 57,800 | 142,226 | |
Loans held for investment at fair value | 0 | ||
Loans held for investment by the Company at fair value | 0 | ||
Loans held for sale by the Company at fair value | 0 | ||
Loans held for sale at fair value | 55,799 | 121,902 | |
Retail and certificate loans held for investment at fair value | 229,719 | 636,686 | |
Other loans held for investment at fair value | 21,240 | 49,954 | |
Accrued interest receivable | 0 | ||
Property, equipment and software, net | 61,572 | 96,641 | |
Operating lease assets | 0 | ||
Intangible assets, net | 0 | ||
Other assets | 168,042 | 187,399 | |
Total assets | 1,393,229 | 1,863,293 | |
Liabilities and Equity | |||
Accounts payable | 0 | ||
Accrued interest payable | 0 | ||
Operating lease liabilities | 0 | ||
Accrued expenses and other liabilities | 0 | ||
Payable to investors | 0 | ||
Credit facilities and securities sold under repurchase agreements | 0 | ||
Short-term borrowings | 27,615 | 104,989 | |
Retail notes, certificates and secured borrowings at fair value | 229,719 | 636,774 | |
Payable on Structured Program borrowings | 65,451 | 152,808 | |
Other liabilities | 150,727 | 244,551 | |
Total liabilities | 488,967 | 1,139,122 | |
Equity | |||
Common stock | 1,010 | 881 | |
Additional paid-in capital | 1,609,820 | 1,508,020 | |
Accumulated deficit | (714,586) | (786,214) | |
Accumulated other comprehensive income | 8,018 | 1,484 | |
Total equity | 904,262 | 724,171 | |
Total liabilities and equity | $ 1,393,229 | 1,863,293 | |
LendingClub | LendingClub Historical Presentation | |||
Assets | |||
Cash and cash equivalents | 524,963 | ||
Cash and due from banks | 0 | ||
Interest-bearing deposits in banks | 0 | ||
Total cash and cash equivalents | 0 | ||
Restricted cash | 103,522 | ||
Securities available for sale at fair value | 142,226 | ||
Loans held for investment at fair value | 636,686 | ||
Loans held for investment by the Company at fair value | 49,954 | ||
Loans held for sale by the Company at fair value | 121,902 | ||
Loans held for sale at fair value | 0 | ||
Retail and certificate loans held for investment at fair value | 0 | ||
Other loans held for investment at fair value | 0 | ||
Accrued interest receivable | 5,205 | ||
Property, equipment and software, net | 96,641 | ||
Operating lease assets | 74,037 | ||
Intangible assets, net | 11,427 | ||
Other assets | 96,730 | ||
Total assets | 1,863,293 | ||
Liabilities and Equity | |||
Accounts payable | 3,698 | ||
Accrued interest payable | 4,572 | ||
Operating lease liabilities | 94,538 | ||
Accrued expenses and other liabilities | 101,457 | ||
Payable to investors | 40,286 | ||
Credit facilities and securities sold under repurchase agreements | 104,989 | ||
Short-term borrowings | 0 | ||
Retail notes, certificates and secured borrowings at fair value | 636,774 | ||
Payable on Structured Program borrowings | 152,808 | ||
Other liabilities | 0 | ||
Total liabilities | 1,139,122 | ||
Equity | |||
Common stock | 881 | ||
Additional paid-in capital | 1,508,020 | ||
Accumulated deficit | (786,214) | ||
Accumulated other comprehensive income | 1,484 | ||
Total equity | 724,171 | ||
Total liabilities and equity | 1,863,293 | ||
LendingClub | Reclassification Adjustments | |||
Assets | |||
Cash and cash equivalents | (524,963) | ||
Cash and due from banks | 5,197 | ||
Interest-bearing deposits in banks | 519,766 | ||
Total cash and cash equivalents | 524,963 | ||
Restricted cash | 0 | ||
Securities available for sale at fair value | 0 | ||
Loans held for investment at fair value | (636,686) | ||
Loans held for investment by the Company at fair value | (49,954) | ||
Loans held for sale by the Company at fair value | (121,902) | ||
Loans held for sale at fair value | 121,902 | ||
Retail and certificate loans held for investment at fair value | 636,686 | ||
Other loans held for investment at fair value | 49,954 | ||
Accrued interest receivable | (5,205) | ||
Property, equipment and software, net | 0 | ||
Operating lease assets | (74,037) | ||
Intangible assets, net | (11,427) | ||
Other assets | 90,669 | ||
Total assets | 0 | ||
Liabilities and Equity | |||
Accounts payable | (3,698) | ||
Accrued interest payable | (4,572) | ||
Operating lease liabilities | (94,538) | ||
Accrued expenses and other liabilities | (101,457) | ||
Payable to investors | (40,286) | ||
Credit facilities and securities sold under repurchase agreements | (104,989) | ||
Short-term borrowings | 104,989 | ||
Retail notes, certificates and secured borrowings at fair value | 0 | ||
Payable on Structured Program borrowings | 0 | ||
Other liabilities | 244,551 | ||
Total liabilities | 0 | ||
Equity | |||
Common stock | 0 | ||
Additional paid-in capital | 0 | ||
Accumulated deficit | 0 | ||
Accumulated other comprehensive income | 0 | ||
Total equity | 0 | ||
Total liabilities and equity | $ 0 | ||
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
Business Acquisition - Summar_2
Business Acquisition - Summary of Income Statement Reclassification Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Net fair value adjustments | [1] | $ 3,986 | $ (105,002) | $ (144,273) | ||
Net interest income and fair value adjustments | 212,831 | [2] | 59,328 | [2] | 98,041 | |
Gain on sales of loans | 70,116 | 30,812 | 67,716 | |||
Non-interest income | ||||||
Marketplace revenue | 578,580 | [2] | 245,314 | [2] | 646,735 | |
Other non-interest income | 27,219 | [2] | 13,442 | [2] | 13,831 | |
Total non-interest income | 605,799 | [2] | 258,756 | [2] | 660,566 | |
Interest income | ||||||
Interest on loans held for sale | [2] | 29,540 | 72,876 | 109,493 | ||
Interest on retail and certificate loans held for investment at fair value | [2] | 57,684 | 115,952 | 214,395 | ||
Interest on other loans held for investment at fair value | [2] | 4,436 | 7,688 | 1,104 | ||
Interest on securities available for sale | [2] | 11,025 | 12,125 | 14,351 | ||
Other interest income | [2] | 1,170 | 1,053 | 6,002 | ||
Total interest income | 292,832 | [2] | 209,694 | [2] | 345,345 | |
Interest expense | ||||||
Interest on short-term borrowings | [2] | 3,677 | 17,837 | 26,826 | ||
Interest on retail notes, certificates and secured borrowings | [2] | 57,684 | 115,952 | 214,395 | ||
Interest on Structured Program borrowings | [2] | 9,638 | 16,204 | 5,070 | ||
Interest on other long-term debt | [2] | 1,774 | 373 | 1,013 | ||
Total interest expense | 80,001 | [2] | 150,366 | [2] | 247,304 | |
Total net revenue | 818,630 | [2] | 318,084 | [2] | 758,607 | |
Provision for credit losses | [1] | 138,800 | [2] | 3,382 | [2] | 0 |
Non-interest expense | ||||||
Compensation and benefits | [2] | 288,390 | 252,517 | 333,628 | ||
Marketing | [2] | 156,142 | 51,518 | 235,337 | ||
Equipment and software | [2] | 39,490 | 26,842 | 24,927 | ||
Occupancy | [2] | 24,249 | 27,870 | 29,367 | ||
Depreciation and amortization | [2] | 44,285 | 54,030 | 59,152 | ||
Professional services | [2] | 47,572 | 41,780 | 43,010 | ||
Other non-interest expense | [2] | 61,258 | 47,762 | 64,077 | ||
Total non-interest expense | 661,386 | [2] | 502,319 | [2] | 789,498 | |
Income tax benefit | (136) | (79) | (201) | |||
Less: Income attributable to noncontrolling interests | 0 | 0 | 55 | |||
LendingClub net income (loss) | 18,580 | (187,538) | (30,745) | |||
Transaction fees | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Net Revenue | 416,839 | 207,640 | 598,760 | |||
LendingClub | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Interest income | 0 | 0 | ||||
Interest expense | 0 | 0 | ||||
Net fair value adjustments | 5,936 | 0 | 0 | |||
Net interest income and fair value adjustments | 10,504 | 0 | 0 | |||
Gain on sales of loans | 0 | 0 | ||||
Net investor revenue | 0 | 0 | ||||
Other revenue | 0 | 0 | ||||
Total net revenue | 0 | 0 | ||||
Non-interest income | ||||||
Marketplace revenue | 115,759 | 245,314 | 646,735 | |||
Other non-interest income | 16,718 | 13,442 | 13,831 | |||
Total non-interest income | 132,477 | 258,756 | 660,566 | |||
Interest income | ||||||
Interest on loans held for sale | 11,025 | 72,876 | 109,493 | |||
Interest on retail and certificate loans held for investment at fair value | 57,684 | 115,952 | 214,395 | |||
Interest on other loans held for investment at fair value | 4,436 | 7,688 | 1,104 | |||
Interest on securities available for sale | 8,922 | 12,125 | 14,351 | |||
Other interest income | 26 | 1,053 | 6,002 | |||
Total interest income | 82,093 | 209,694 | 345,345 | |||
Interest expense | ||||||
Interest on short-term borrowings | 3,676 | 17,837 | 26,826 | |||
Interest on retail notes, certificates and secured borrowings | 57,684 | 115,952 | 214,395 | |||
Interest on Structured Program borrowings | 9,638 | 16,204 | 5,070 | |||
Interest on other long-term debt | 591 | 373 | 1,013 | |||
Total interest expense | 71,589 | 150,366 | 247,304 | |||
Net interest income | 59,328 | 98,041 | ||||
Total net revenue | 142,981 | 318,084 | 758,607 | |||
Provision for credit losses | (3,382) | 3,382 | 0 | |||
Operating expenses | ||||||
Sales and marketing | 0 | 0 | ||||
Origination and servicing | 0 | 0 | ||||
Engineering and product development | 0 | 0 | ||||
Other general and administrative | 0 | 0 | ||||
Total non-interest expense | 0 | 0 | ||||
Non-interest expense | ||||||
Compensation and benefits | 31,010 | 252,517 | 333,628 | |||
Marketing | 5,460 | 51,518 | 235,337 | |||
Equipment and software | 2,459 | 26,842 | 24,927 | |||
Occupancy | 17,751 | 27,870 | 29,367 | |||
Depreciation and amortization | 39,716 | 54,030 | 59,152 | |||
Professional services | 14,666 | 41,780 | 43,010 | |||
Other non-interest expense | 86,977 | 47,762 | 64,077 | |||
Total non-interest expense | 198,039 | 502,319 | 789,498 | |||
Income (Loss) before income tax benefit | (187,617) | (30,891) | ||||
Income tax benefit | (44,013) | (79) | (201) | |||
Consolidated net income (loss) | (7,663) | (187,538) | (30,690) | |||
Less: Income attributable to noncontrolling interests | 55 | |||||
LendingClub net income (loss) | $ 71,628 | (30,745) | ||||
LendingClub | Transaction fees | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Net Revenue | 0 | 0 | ||||
LendingClub | Investor fees | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Net Revenue | 0 | 0 | ||||
LendingClub | LendingClub Historical Presentation | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Interest income | 209,694 | 345,345 | ||||
Interest expense | (141,503) | (246,587) | ||||
Net fair value adjustments | (117,247) | (144,990) | ||||
Net interest income and fair value adjustments | (49,056) | (46,232) | ||||
Gain on sales of loans | 30,812 | 67,716 | ||||
Net investor revenue | 93,620 | 146,016 | ||||
Other revenue | 13,442 | 13,831 | ||||
Total net revenue | 314,702 | 758,607 | ||||
Non-interest income | ||||||
Marketplace revenue | 0 | 0 | ||||
Other non-interest income | 0 | 0 | ||||
Total non-interest income | 0 | 0 | ||||
Interest income | ||||||
Interest on loans held for sale | 0 | 0 | ||||
Interest on retail and certificate loans held for investment at fair value | 0 | 0 | ||||
Interest on other loans held for investment at fair value | 0 | 0 | ||||
Interest on securities available for sale | 0 | 0 | ||||
Other interest income | 0 | 0 | ||||
Total interest income | 0 | 0 | ||||
Interest expense | ||||||
Interest on short-term borrowings | 0 | 0 | ||||
Interest on retail notes, certificates and secured borrowings | 0 | 0 | ||||
Interest on Structured Program borrowings | 0 | 0 | ||||
Interest on other long-term debt | 0 | 0 | ||||
Total interest expense | 0 | 0 | ||||
Net interest income | 0 | 0 | ||||
Total net revenue | 0 | 0 | ||||
Provision for credit losses | 0 | 0 | ||||
Operating expenses | ||||||
Sales and marketing | 79,055 | 279,423 | ||||
Origination and servicing | 71,193 | 103,403 | ||||
Engineering and product development | 139,050 | 168,380 | ||||
Other general and administrative | 213,021 | 238,292 | ||||
Total non-interest expense | 502,319 | 789,498 | ||||
Non-interest expense | ||||||
Compensation and benefits | 0 | 0 | ||||
Marketing | 0 | 0 | ||||
Equipment and software | 0 | 0 | ||||
Occupancy | 0 | 0 | ||||
Depreciation and amortization | 0 | 0 | ||||
Professional services | 0 | 0 | ||||
Other non-interest expense | 0 | 0 | ||||
Total non-interest expense | 0 | 0 | ||||
Income (Loss) before income tax benefit | (187,617) | (30,891) | ||||
Income tax benefit | (79) | (201) | ||||
Consolidated net income (loss) | (187,538) | (30,690) | ||||
Less: Income attributable to noncontrolling interests | 55 | |||||
LendingClub net income (loss) | (30,745) | |||||
LendingClub | LendingClub Historical Presentation | Transaction fees | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Net Revenue | 207,640 | 598,760 | ||||
LendingClub | LendingClub Historical Presentation | Investor fees | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Net Revenue | 111,864 | 124,532 | ||||
LendingClub | Reclassification Adjustments | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Interest income | (209,694) | (345,345) | ||||
Interest expense | 141,503 | 246,587 | ||||
Net fair value adjustments | 117,247 | 144,990 | ||||
Net interest income and fair value adjustments | 49,056 | 46,232 | ||||
Gain on sales of loans | (30,812) | (67,716) | ||||
Net investor revenue | (93,620) | (146,016) | ||||
Other revenue | (13,442) | (13,831) | ||||
Total net revenue | (314,702) | (758,607) | ||||
Non-interest income | ||||||
Marketplace revenue | 245,314 | 646,735 | ||||
Other non-interest income | 13,442 | 13,831 | ||||
Total non-interest income | 258,756 | 660,566 | ||||
Interest income | ||||||
Interest on loans held for sale | 72,876 | 109,493 | ||||
Interest on retail and certificate loans held for investment at fair value | 115,952 | 214,395 | ||||
Interest on other loans held for investment at fair value | 7,688 | 1,104 | ||||
Interest on securities available for sale | 12,125 | 14,351 | ||||
Other interest income | 1,053 | 6,002 | ||||
Total interest income | 209,694 | 345,345 | ||||
Interest expense | ||||||
Interest on short-term borrowings | 17,837 | 26,826 | ||||
Interest on retail notes, certificates and secured borrowings | 115,952 | 214,395 | ||||
Interest on Structured Program borrowings | 16,204 | 5,070 | ||||
Interest on other long-term debt | 373 | 1,013 | ||||
Total interest expense | 150,366 | 247,304 | ||||
Net interest income | 59,328 | 98,041 | ||||
Total net revenue | 318,084 | 758,607 | ||||
Provision for credit losses | 3,382 | 0 | ||||
Operating expenses | ||||||
Sales and marketing | (79,055) | (279,423) | ||||
Origination and servicing | (71,193) | (103,403) | ||||
Engineering and product development | (139,050) | (168,380) | ||||
Other general and administrative | (213,021) | (238,292) | ||||
Total non-interest expense | (502,319) | (789,498) | ||||
Non-interest expense | ||||||
Compensation and benefits | 252,517 | 333,628 | ||||
Marketing | 51,518 | 235,337 | ||||
Equipment and software | 26,842 | 24,927 | ||||
Occupancy | 27,870 | 29,367 | ||||
Depreciation and amortization | 54,030 | 59,152 | ||||
Professional services | 41,780 | 43,010 | ||||
Other non-interest expense | 47,762 | 64,077 | ||||
Total non-interest expense | 502,319 | 789,498 | ||||
Income (Loss) before income tax benefit | 0 | 0 | ||||
Income tax benefit | 0 | 0 | ||||
Consolidated net income (loss) | 0 | 0 | ||||
Less: Income attributable to noncontrolling interests | 0 | |||||
LendingClub net income (loss) | 0 | |||||
LendingClub | Reclassification Adjustments | Transaction fees | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Net Revenue | (207,640) | (598,760) | ||||
LendingClub | Reclassification Adjustments | Investor fees | ||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||
Net Revenue | $ (111,864) | $ (124,532) | ||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||||
[2] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Marketplace Revenue - Component
Marketplace Revenue - Components of Marketplace Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Gain on sales of loans | $ 70,116 | $ 30,812 | $ 67,716 | |
Net fair value adjustments | [1] | 3,986 | (105,002) | (144,273) |
Total marketplace revenue | 578,580 | 245,314 | 646,735 | |
Origination fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | 416,839 | 207,640 | 598,760 | |
Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 87,639 | $ 111,864 | $ 124,532 | |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Marketplace Revenue - Disaggreg
Marketplace Revenue - Disaggregation of Revenue by Source (Details) - Transferred over Time - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 46,907 | $ 212,651 | $ 604,234 |
Transaction fees | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 32,673 | 207,640 | 598,760 |
Referral fees | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 14,234 | $ 5,011 | $ 5,474 |
Net Income (Loss) Per Share - B
Net Income (Loss) Per Share - Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net loss | $ 18,580 | $ (187,538) | $ (30,745) | |
Deemed dividend | 0 | |||
Deemed dividend | 0 | |||
Net income (loss) attributable to stockholders – Diluted | $ 18,580 | |||
Weighted-average common shares - Diluted (shares) | [1] | 102,147,353 | ||
Diluted EPS ($ per share) | [1] | $ 0.18 | ||
Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net loss | $ 18,456 | (154,664) | (30,745) | |
Deemed dividend | 0 | (50,204) | 0 | |
Net income (loss) attributable to stockholders – Basic | $ 18,456 | $ (204,868) | $ (30,745) | |
Weighted-average common shares - Basic (shares) | [1] | 97,486,754 | 77,934,302 | 87,278,596 |
Basic EPS ($ per share) | [1] | $ 0.19 | $ (2.63) | $ (0.35) |
Deemed dividend | $ 0 | $ (50,204) | $ 0 | |
Net income (loss) attributable to stockholders – Diluted | $ (204,868) | $ (30,745) | ||
Weighted-average common shares - Diluted (shares) | [1] | 77,934,302 | 87,278,596 | |
Diluted EPS ($ per share) | [1] | $ (2.63) | $ (0.35) | |
Preferred Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net loss | 124 | $ (32,874) | ||
Deemed dividend | 0 | 50,204 | ||
Net income (loss) attributable to stockholders – Basic | $ 124 | $ 17,330 | ||
Weighted-average common shares - Basic (shares) | [1] | 653,118 | 12,505,393 | 0 |
Basic EPS ($ per share) | [1] | $ 0.19 | $ 1.39 | $ 0 |
Deemed dividend | $ 0 | $ 50,204 | ||
Net income (loss) attributable to stockholders – Diluted | $ 17,330 | |||
Weighted-average common shares - Diluted (shares) | [1] | 12,505,393 | 0 | |
Diluted EPS ($ per share) | [1] | $ 1.39 | $ 0 | |
[1] | See “ Notes to Consolidated Financial Statements – Note 4. Net Income (Loss) Per Share ” for additional information. |
Net Income (Loss) Per Share - N
Net Income (Loss) Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 20, 2020 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred stock, par value ($ per share) | $ 0.01 | $ 0.01 | ||
One-time cash payment | $ 50.2 | |||
Preferred stock, outstanding (shares) | 0 | 0 | 43,000 | |
Series A Preferred Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Preferred stock, par value ($ per share) | $ 0.01 | |||
Largest Stockholder | Series A Preferred Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Conversion of stock, shares issued (in shares) | 195,628 | |||
Largest Stockholder | Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Conversion of stock, shares of common stock converted and retired (in shares) | 19,562,881 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Shares Excluded from Calculation of Earnings (Loss) per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average common shares excluded (shares) | 0 | 13,027,089 | 515,439 |
Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average common shares excluded (shares) | 0 | 12,505,393 | 0 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average common shares excluded (shares) | 0 | 221,949 | 455,627 |
RSUs and PBRSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average common shares excluded (shares) | 0 | 299,747 | 59,812 |
Securities Available for Sale -
Securities Available for Sale - Amortized cost/fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 256,170 | $ 159,164 | |
Gross Unrealized Gains | 11,104 | 2,771 | |
Gross Unrealized Losses | (3,744) | (973) | |
Credit ValuationAllowance | 0 | (18,736) | $ 0 |
Fair Value | 263,530 | 142,226 | |
Securities pledged as collateral at fair value | 50,500 | 133,500 | |
U.S. agency residential mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 125,985 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | (2,286) | ||
Credit ValuationAllowance | 0 | ||
Fair Value | 123,699 | ||
Asset-backed senior securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 28,057 | 75,332 | |
Gross Unrealized Gains | 72 | 67 | |
Gross Unrealized Losses | 0 | (27) | |
Credit ValuationAllowance | 0 | 0 | |
Fair Value | 28,129 | 75,372 | |
Securities pledged as collateral at fair value | 236,800 | 133,500 | |
U.S. agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 26,902 | ||
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | (731) | ||
Credit ValuationAllowance | 0 | ||
Fair Value | 26,172 | ||
Other asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 26,112 | ||
Gross Unrealized Gains | 151 | ||
Gross Unrealized Losses | (130) | ||
Credit ValuationAllowance | 0 | ||
Fair Value | 26,133 | 200 | |
Commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 26,649 | ||
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | (552) | ||
Credit ValuationAllowance | 0 | ||
Fair Value | 26,098 | ||
CLUB Certificate asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 15,049 | 54,525 | |
Gross Unrealized Gains | 3,236 | 576 | |
Gross Unrealized Losses | 0 | (772) | |
Credit ValuationAllowance | 0 | (4,190) | 0 |
Fair Value | 18,285 | 50,139 | |
Asset-backed subordinated securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 4,119 | 29,107 | |
Gross Unrealized Gains | 7,643 | 2,128 | |
Gross Unrealized Losses | 0 | (174) | |
Credit ValuationAllowance | 0 | (14,546) | $ 0 |
Fair Value | 11,762 | 16,515 | |
Municipal securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,297 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | (45) | ||
Credit ValuationAllowance | 0 | ||
Fair Value | 3,252 | ||
Other securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 200 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Credit ValuationAllowance | 0 | ||
Fair Value | 200 | ||
Asset-backed securities, securitized loans and receivables, subject to restrictions on transfer | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair Value | $ 13,300 | $ 119,300 |
Securities Available for Sale_2
Securities Available for Sale - Continuous loss (Details) $ in Thousands | Dec. 31, 2021USD ($)position | Dec. 31, 2020USD ($)position |
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | $ 190,246 | $ 26,678 |
Unrealized losses, less than 12 months | (3,744) | (855) |
Fair value, 12 months or longer | 0 | 6,052 |
Unrealized losses, 12 months or longer | 0 | (118) |
Fair Value | 190,246 | 32,730 |
Unrealized Losses | $ (3,744) | $ (973) |
Number of positions with unrealized losses | position | 145 | 55 |
U.S. agency residential mortgage-backed securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | $ 123,668 | |
Unrealized losses, less than 12 months | (2,286) | |
Fair value, 12 months or longer | 0 | |
Unrealized losses, 12 months or longer | 0 | |
Fair Value | 123,668 | |
Unrealized Losses | (2,286) | |
U.S. agency securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | 24,175 | |
Unrealized losses, less than 12 months | (731) | |
Fair value, 12 months or longer | 0 | |
Unrealized losses, 12 months or longer | 0 | |
Fair Value | 24,175 | |
Unrealized Losses | (731) | |
Other asset-backed securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | 13,224 | |
Unrealized losses, less than 12 months | (130) | |
Fair value, 12 months or longer | 0 | |
Unrealized losses, 12 months or longer | 0 | |
Fair Value | 13,224 | |
Unrealized Losses | (130) | |
Commercial mortgage-backed securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | 25,927 | |
Unrealized losses, less than 12 months | (552) | |
Fair value, 12 months or longer | 0 | |
Unrealized losses, 12 months or longer | 0 | |
Fair Value | 25,927 | |
Unrealized Losses | (552) | |
Municipal securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | 3,252 | |
Unrealized losses, less than 12 months | (45) | |
Fair value, 12 months or longer | 0 | |
Unrealized losses, 12 months or longer | 0 | |
Fair Value | 3,252 | |
Unrealized Losses | $ (45) | |
Asset-backed securities related to Structured Program transactions | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | $ 26,678 | |
Unrealized losses, less than 12 months | (855) | |
Fair value, 12 months or longer | 6,052 | |
Unrealized losses, 12 months or longer | (118) | |
Fair Value | 32,730 | |
Unrealized Losses | $ (973) |
Securities Available for Sale_3
Securities Available for Sale - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of Securities Available-for-Sale [Line Items] | ||||
Par value of acquired PCD securities at acquisition | $ 0 | $ 42,388,000 | ||
Proceeds from sales of securities available for sale | [1] | $ 106,192,000 | $ 6,217,000 | $ 12,548,000 |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Securities Available for Sale_4
Securities Available for Sale - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ (18,736) | $ 0 |
Reversal (provision) for credit loss expense | 3,382 | (3,382) |
Reversal (allowance) arising from PDC financial assets | 15,354 | (15,354) |
Balance at end of period | 0 | (18,736) |
CLUB Certificate asset-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | (4,190) | 0 |
Reversal (provision) for credit loss expense | 236 | (236) |
Reversal (allowance) arising from PDC financial assets | 3,954 | (3,954) |
Balance at end of period | 0 | (4,190) |
Asset-backed subordinated securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | (14,546) | 0 |
Reversal (provision) for credit loss expense | 3,146 | (3,146) |
Reversal (allowance) arising from PDC financial assets | 11,400 | (11,400) |
Balance at end of period | $ 0 | $ (14,546) |
Securities Available for Sale_5
Securities Available for Sale - Securities Purchased with Credit Deterioration (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Purchase price of PCD securities at acquisition | $ 27,034,000 | |
Credit valuation allowance on PCD securities at acquisition | 15,354,000 | |
Par value of acquired PCD securities at acquisition | $ 0 | $ 42,388,000 |
Securities Available for Sale_6
Securities Available for Sale - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Amortized cost, due after 5 years through 10 years | $ 8,631 | |
Amortized cost, due after 10 years | 200,314 | |
Asset-backed securities related to Structured Program transactions | 47,225 | |
Amortized Cost | 256,170 | $ 159,164 |
Fair Value | ||
Fair value, due after 5 years through 10 years | 8,516 | |
Fair value, due after 10 years | 196,838 | |
Asset-backed securities related to Structured Program transactions | 58,176 | |
Fair Value | $ 263,530 | 142,226 |
Weighted-average yield, due after 5 years through 10 years | 1.59% | |
Weighted-average yield, due after 10 years | 1.57% | |
Weighted-average yield | 4.76% | |
U.S. agency residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Amortized cost, due after 5 years through 10 years | $ 710 | |
Amortized cost, due after 10 years | 125,275 | |
Fair Value | ||
Fair value, due after 5 years through 10 years | 703 | |
Fair value, due after 10 years | 122,996 | |
Fair Value | 123,699 | |
Other asset-backed securities | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Amortized cost, due after 5 years through 10 years | 1,092 | |
Amortized cost, due after 10 years | 25,020 | |
Amortized Cost | 26,112 | |
Fair Value | ||
Fair value, due after 5 years through 10 years | 1,109 | |
Fair value, due after 10 years | 25,024 | |
Fair Value | 26,133 | $ 200 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Amortized cost, due after 5 years through 10 years | 4,204 | |
Amortized cost, due after 10 years | 22,445 | |
Amortized Cost | 26,649 | |
Fair Value | ||
Fair value, due after 5 years through 10 years | 4,092 | |
Fair value, due after 10 years | 22,006 | |
Fair Value | 26,098 | |
U.S. agency securities | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Amortized cost, due after 5 years through 10 years | 1,998 | |
Amortized cost, due after 10 years | 24,904 | |
Amortized Cost | 26,902 | |
Fair Value | ||
Fair value, due after 5 years through 10 years | 1,992 | |
Fair value, due after 10 years | 24,180 | |
Fair Value | 26,172 | |
Municipal securities | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Amortized cost, due after 5 years through 10 years | 627 | |
Amortized cost, due after 10 years | 2,670 | |
Amortized Cost | 3,297 | |
Fair Value | ||
Fair value, due after 5 years through 10 years | 620 | |
Fair value, due after 10 years | 2,632 | |
Fair Value | $ 3,252 | |
Asset-backed securities related to Structured Program transactions | ||
Fair Value | ||
Weighted-average yield | 18.89% |
Securities Available for Sale_7
Securities Available for Sale - Proceeds and Gross Realized Gains and Losses from Sales of Other Securities Available for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | [1] | $ 106,192 | $ 6,217 | $ 12,548 |
Gross realized gains | 708 | 14 | 9 | |
Gross realized losses | $ (952) | $ (3) | $ (1) | |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Loans and Leases Held for Inv_3
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses - Narrative (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Other Assets | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Accrued interest receivable | $ 15.6 |
Loans and Leases Held for Inv_4
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses - Schedule of Components of Portfolio Segment by Class of Financing Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | $ 2,899,126 | $ 0 |
Allowance for loan and lease losses | (144,389) | 0 |
Loans and leases held for investment, net | 2,754,737 | 0 |
Loans pledged as collateral under the FRB discount window | $ 149,200 | |
Allowance ratios | 5.00% | |
Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans, percent | 5.50% | |
Consumer Portfolio Segment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | $ 2,021,916 | |
Allowance for loan and lease losses | (128,812) | 0 |
Loans and leases held for investment, net | $ 1,893,104 | |
Allowance ratios | 6.40% | |
Consumer Portfolio Segment | Unsecured personal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | $ 1,804,578 | |
Consumer Portfolio Segment | Residential mortgages | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | 151,362 | |
Consumer Portfolio Segment | Secured consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | 65,976 | |
Commercial Portfolio Segment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | 877,210 | |
Allowance for loan and lease losses | (15,577) | $ 0 |
Loans and leases held for investment, net | $ 861,633 | |
Allowance ratios | 1.80% | |
Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans, percent | 2.60% | |
Commercial Portfolio Segment | Equipment finance | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | $ 149,155 | |
Commercial Portfolio Segment | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | 310,399 | |
Commercial Portfolio Segment | Commercial and industrial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | 417,656 | |
Commercial Portfolio Segment | Commercial and industrial loan, PPP | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases held for investment | $ 268,300 |
Loans and Leases Held for Inv_5
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses - Allowance For Credit Losses (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Jan. 31, 2021 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning of period | $ 0 | ||
Credit loss expense for loans and leases held for investment | 140,951 | ||
Initial allowance for PCD loans acquired during the period | 12,440 | ||
Charge-offs (3) | (10,452) | ||
Recoveries | $ 12,400 | 1,450 | |
Allowance for loan and lease losses, end of period | 144,389 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Initial allowance for PCD assets acquired during the period at acquisition date | 30,378 | ||
Radius Bancorp, Inc | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Credit loss expense for loans and leases held for investment | 6,900 | ||
Unfunded Loan Commitment | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Reserve for unfunded lending commitments, beginning of period | 0 | ||
Credit loss expense for unfunded lending commitments | 1,231 | ||
Reserve for unfunded lending commitments, end of period | 1,231 | ||
Unfunded Loan Commitment, Commitments To Extend Credit | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Reserve for unfunded lending commitments, end of period | 110,800 | ||
PCD Loans Acquired | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Charge-offs (3) | $ (18,000) | ||
Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning of period | 0 | ||
Credit loss expense for loans and leases held for investment | 136,789 | ||
Initial allowance for PCD loans acquired during the period | 603 | ||
Charge-offs (3) | (8,789) | ||
Recoveries | 209 | ||
Allowance for loan and lease losses, end of period | 128,812 | ||
Consumer Portfolio Segment | Unfunded Loan Commitment | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Reserve for unfunded lending commitments, beginning of period | 0 | ||
Credit loss expense for unfunded lending commitments | 0 | ||
Reserve for unfunded lending commitments, end of period | 0 | ||
Commercial Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning of period | 0 | ||
Credit loss expense for loans and leases held for investment | 4,162 | ||
Initial allowance for PCD loans acquired during the period | 11,837 | ||
Charge-offs (3) | (1,663) | ||
Recoveries | 1,241 | ||
Allowance for loan and lease losses, end of period | 15,577 | ||
Commercial Portfolio Segment | Unfunded Loan Commitment | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Reserve for unfunded lending commitments, beginning of period | 0 | ||
Credit loss expense for unfunded lending commitments | 1,231 | ||
Reserve for unfunded lending commitments, end of period | $ 1,231 |
Loans and Leases Held for Inv_6
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Term Loans and Leases by Origination Year | ||
Total | $ 2,899,126 | $ 0 |
Consumer Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
2021 | 1,904,265 | |
2020 | 37,620 | |
2019 | 26,798 | |
2018 | 9,906 | |
2017 | 3,407 | |
Prior | 38,645 | |
Within Revolving Period | 1,275 | |
Total | 2,021,916 | |
Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
2021 | 1,804,578 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 1,804,578 | |
Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
2021 | 36,732 | |
2020 | 37,620 | |
2019 | 26,798 | |
2018 | 7,277 | |
2017 | 3,025 | |
Prior | 38,645 | |
Within Revolving Period | 1,265 | |
Total | 151,362 | |
Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
2021 | 62,955 | |
2020 | 0 | |
2019 | 0 | |
2018 | 2,629 | |
2017 | 382 | |
Prior | 0 | |
Within Revolving Period | 10 | |
Total | 65,976 | |
Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
2021 | 350,952 | |
2020 | 208,693 | |
2019 | 110,640 | |
2018 | 70,150 | |
2017 | 47,320 | |
Prior | 88,769 | |
Within Revolving Period | 686 | |
Total | 877,210 | |
Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
2021 | 53,971 | |
2020 | 35,398 | |
2019 | 28,728 | |
2018 | 16,060 | |
2017 | 6,184 | |
Prior | 8,814 | |
Within Revolving Period | 0 | |
Total | 149,155 | |
Commercial Portfolio Segment | Equipment finance | Pass | ||
Term Loans and Leases by Origination Year | ||
2021 | 52,440 | |
2020 | 35,398 | |
2019 | 26,918 | |
2018 | 15,457 | |
2017 | 6,184 | |
Prior | 8,814 | |
Within Revolving Period | 0 | |
Total | 145,211 | |
Commercial Portfolio Segment | Equipment finance | Special mention | ||
Term Loans and Leases by Origination Year | ||
2021 | 1,531 | |
2020 | 0 | |
2019 | 1,810 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 3,341 | |
Commercial Portfolio Segment | Equipment finance | Substandard | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 603 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 603 | |
Commercial Portfolio Segment | Equipment finance | Doubtful | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Equipment finance | Loss | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
2021 | 55,613 | |
2020 | 63,599 | |
2019 | 54,737 | |
2018 | 43,843 | |
2017 | 23,384 | |
Prior | 69,223 | |
Within Revolving Period | 0 | |
Total | 310,399 | |
Commercial Portfolio Segment | Commercial real estate | Pass | ||
Term Loans and Leases by Origination Year | ||
2021 | 55,613 | |
2020 | 55,202 | |
2019 | 54,460 | |
2018 | 39,981 | |
2017 | 22,366 | |
Prior | 57,235 | |
Within Revolving Period | 0 | |
Total | 284,857 | |
Commercial Portfolio Segment | Commercial real estate | Special mention | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 8,397 | |
2019 | 0 | |
2018 | 1,366 | |
2017 | 1,018 | |
Prior | 7,242 | |
Within Revolving Period | 0 | |
Total | 18,023 | |
Commercial Portfolio Segment | Commercial real estate | Substandard | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 277 | |
2018 | 2,496 | |
2017 | 0 | |
Prior | 4,179 | |
Within Revolving Period | 0 | |
Total | 6,952 | |
Commercial Portfolio Segment | Commercial real estate | Doubtful | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Commercial real estate | Loss | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 567 | |
Within Revolving Period | 0 | |
Total | 567 | |
Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
2021 | 241,368 | |
2020 | 109,696 | |
2019 | 27,175 | |
2018 | 10,247 | |
2017 | 17,752 | |
Prior | 10,732 | |
Within Revolving Period | 686 | |
Total | 417,656 | |
Commercial Portfolio Segment | Commercial and industrial | Pass | ||
Term Loans and Leases by Origination Year | ||
2021 | 241,368 | |
2020 | 108,574 | |
2019 | 24,106 | |
2018 | 7,874 | |
2017 | 14,756 | |
Prior | 8,058 | |
Within Revolving Period | 599 | |
Total | 405,335 | |
Commercial Portfolio Segment | Commercial and industrial | Special mention | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 2,207 | |
2018 | 463 | |
2017 | 1,467 | |
Prior | 40 | |
Within Revolving Period | 0 | |
Total | 4,177 | |
Commercial Portfolio Segment | Commercial and industrial | Substandard | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 1,122 | |
2019 | 862 | |
2018 | 1,858 | |
2017 | 1,525 | |
Prior | 1,571 | |
Within Revolving Period | 87 | |
Total | 7,025 | |
Commercial Portfolio Segment | Commercial and industrial | Doubtful | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Commercial and industrial | Loss | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 52 | |
2017 | 4 | |
Prior | 1,063 | |
Within Revolving Period | 0 | |
Total | 1,119 | |
Current | Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
2021 | 1,796,678 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 1,796,678 | |
Current | Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
2021 | 36,732 | |
2020 | 37,620 | |
2019 | 26,798 | |
2018 | 7,277 | |
2017 | 2,682 | |
Prior | 37,685 | |
Within Revolving Period | 1,265 | |
Total | 150,059 | |
Current | Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
2021 | 62,731 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 10 | |
Total | 62,741 | |
30-59 days past due | Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
2021 | 3,624 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 3,624 | |
30-59 days past due | Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 142 | |
Within Revolving Period | 0 | |
Total | 142 | |
30-59 days past due | Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
2021 | 171 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 171 | |
30-59 days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 104 | |
30-59 days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | |
30-59 days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 104 | |
30-59 days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | |
60-89 days past due | Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
2021 | 2,600 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 2,600 | |
60-89 days past due | Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 92 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 92 | |
60-89 days past due | Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
2021 | 53 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 53 | |
60-89 days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | |
60-89 days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | |
60-89 days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | |
60-89 days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | |
90 or more days past due | Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
2021 | 1,676 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 1,676 | |
90 or more days past due | Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 251 | |
Prior | 818 | |
Within Revolving Period | 0 | |
Total | 1,069 | |
90 or more days past due | Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 2,629 | |
2017 | 382 | |
Prior | 0 | |
Within Revolving Period | 0 | |
Total | 3,011 | |
90 or more days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 2,019 | |
90 or more days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | |
90 or more days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 609 | |
90 or more days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 1,410 | |
Total Days Past Due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 2,123 | |
Total Days Past Due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | |
Total Days Past Due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 713 | |
Total Days Past Due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | $ 1,410 |
Loans and Leases Held for Inv_7
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses - Nonaccrual and Past Due Table (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | $ 9,985 |
Nonaccrual with no related ACL | $ 6,434 |
Nonaccrual ratios | 0.30% |
Allowance for loan and lease losses to nonaccrual loans and leases, percent | 1446.00% |
Nonaccuring Loans And Leases, Excluding PPP Loans | Loans And Leases, Class | Credit Concentration Risk | |
Financing Receivable, Past Due [Line Items] | |
Concentration risk, percentage | 0.40% |
Consumer Portfolio Segment | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | $ 6,060 |
Nonaccrual with no related ACL | $ 4,384 |
Nonaccrual ratios | 0.30% |
Consumer Portfolio Segment | Unsecured personal | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | $ 1,676 |
Nonaccrual with no related ACL | 0 |
Consumer Portfolio Segment | Residential mortgages | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 1,373 |
Nonaccrual with no related ACL | 1,373 |
Consumer Portfolio Segment | Secured consumer | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 3,011 |
Nonaccrual with no related ACL | 3,011 |
Commercial Portfolio Segment | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 3,925 |
Nonaccrual with no related ACL | $ 2,050 |
Nonaccrual ratios | 0.40% |
Commercial Portfolio Segment | Equipment finance | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | $ 603 |
Nonaccrual with no related ACL | 0 |
Commercial Portfolio Segment | Commercial real estate | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 989 |
Nonaccrual with no related ACL | 989 |
Commercial Portfolio Segment | Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Nonaccrual | 2,333 |
Nonaccrual with no related ACL | $ 1,061 |
Loans and Leases Held for Inv_8
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses - PCD Loans Acquired (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Abstract] | ||
Purchase price | $ 337,118 | |
Allowance for credit losses | 30,378 | |
Discount attributable to other factors | 12,204 | |
Par value | 379,700 | |
Charge-offs, gross | 10,452 | |
Recoveries | $ 12,400 | $ 1,450 |
Securitizations and Variable _3
Securitizations and Variable Interest Entities - Summary of Select Information Related to VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Restricted cash | [1] | $ 76,460 | $ 103,522 |
Securities available for sale at fair value | 263,530 | 142,226 | |
Loans held for sale at fair value | 142,370 | 121,902 | |
Retail and certificate loans held for investment at fair value | [1] | 229,719 | 636,686 |
Other loans held for investment at fair value | 2,754,737 | 0 | |
Other assets | [1] | 302,546 | 187,399 |
Liabilities | |||
Retail notes, certificates and secured borrowings at fair value | [1] | 229,719 | 636,774 |
Payable on Structured Program borrowings | [1] | 65,451 | 152,808 |
Other liabilities | [1] | 303,951 | 244,551 |
Total liabilities | 4,050,077 | 1,139,122 | |
Consolidated VIEs | |||
Assets | |||
Restricted cash | 13,462 | 15,983 | |
Securities available for sale at fair value | 0 | 0 | |
Loans held for sale at fair value | 41,734 | 98,190 | |
Retail and certificate loans held for investment at fair value | 10,281 | 52,620 | |
Other loans held for investment at fair value | 20,929 | 50,102 | |
Other assets | 584 | 1,270 | |
Total assets | 86,990 | 218,165 | |
Liabilities | |||
Retail notes, certificates and secured borrowings at fair value | 10,281 | 52,620 | |
Payable on Structured Program borrowings | 65,451 | 152,808 | |
Other liabilities | 467 | 729 | |
Total liabilities | 76,199 | 206,157 | |
Total net assets | 10,791 | 12,008 | |
Unconsolidated VIEs | |||
Assets | |||
Restricted cash | 0 | 0 | |
Securities available for sale at fair value | 58,177 | 142,026 | |
Loans held for sale at fair value | 0 | 0 | |
Retail and certificate loans held for investment at fair value | 0 | 0 | |
Other loans held for investment at fair value | 0 | 0 | |
Other assets | 17,156 | 32,865 | |
Total assets | 75,333 | 174,891 | |
Liabilities | |||
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |
Payable on Structured Program borrowings | 0 | 0 | |
Other liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Total net assets | 75,333 | 174,891 | |
Total | |||
Assets | |||
Restricted cash | 13,462 | 15,983 | |
Securities available for sale at fair value | 58,177 | 142,026 | |
Loans held for sale at fair value | 41,734 | 98,190 | |
Retail and certificate loans held for investment at fair value | 10,281 | 52,620 | |
Other loans held for investment at fair value | 20,929 | 50,102 | |
Other assets | 17,740 | 34,135 | |
Total assets | 162,323 | 393,056 | |
Liabilities | |||
Retail notes, certificates and secured borrowings at fair value | 10,281 | 52,620 | |
Payable on Structured Program borrowings | 65,451 | 152,808 | |
Other liabilities | 467 | 729 | |
Total liabilities | 76,199 | 206,157 | |
Total net assets | $ 86,124 | $ 186,899 | |
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
Securitizations and Variable _4
Securitizations and Variable Interest Entities - Unconsolidated VIEs with Significant Continuing Involvement (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | $ 4,900,319 | $ 1,863,293 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 1,386,279 | 3,233,416 |
Net Assets | 75,333 | 174,891 |
Total exposure | 75,333 | 174,891 |
Available-for-sale Securities [Member] | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 58,177 | 142,026 |
Total exposure | 58,177 | 142,026 |
Other Assets | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Total assets of consolidated VIEs | 17,156 | 32,865 |
Total exposure | $ 17,156 | $ 32,865 |
Securitizations and Variable _5
Securitizations and Variable Interest Entities - Summary of Personal Whole Loan Securitizations and Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Unconsolidated Trusts | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Principal derecognized from loans securitized or sold | $ 0 | $ 255,203 |
Net gains recognized from loans securitized or sold | 0 | (20) |
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement | 0 | 12,707 |
Proceeds from issuance of notes and certificates from Structured Program transactions | 0 | 237,764 |
Cash proceeds from servicing and other administrative fees on loans securitized or sold | 9,141 | 17,684 |
Cash proceeds for interest received on senior securities and subordinated securities | 2,978 | 4,559 |
Unconsolidated Certificate Program Trusts | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Principal derecognized from loans securitized or sold | 0 | 971,738 |
Net gains recognized from loans securitized or sold | 0 | 7,897 |
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement | 0 | 35,836 |
Proceeds from issuance of notes and certificates from Structured Program transactions | 0 | 598,694 |
Cash proceeds from servicing and other administrative fees on loans securitized or sold | 14,445 | 26,822 |
Cash proceeds for interest received on senior securities and subordinated securities | $ 6,158 | 8,251 |
Structured Program Transactions | Senior securities | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Transferor's interests retained in transferred financial assets, fair value | 26,300 | |
Structured Program Transactions | CLUB Certificate asset-backed securities | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Transferor's interests retained in transferred financial assets, fair value | 18,300 | |
Structured Program Transactions | Subordinated securities | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Transferor's interests retained in transferred financial assets, fair value | $ 4,000 |
Securitizations and Variable _6
Securitizations and Variable Interest Entities - Narrative (Details) - Off-balance Sheet Loans - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding principal balance | $ 1,300 | $ 3,200 |
Off-balance sheet loans, principal amount outstanding, 31 days or more past due | $ 35 | $ 94.8 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Loans, Loan Servicing Rights, Related Notes and Certificates (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||||
Loans held for sale at fair value | $ 142,370 | $ 121,902 | ||
Retail and certificate loans held for investment at fair value | [1] | 229,719 | 636,686 | |
Other loans held for investment at fair value | [1] | 21,240 | 49,954 | |
Securities available for sale: | ||||
Securities available for sale at fair value | 263,530 | 142,226 | ||
Servicing assets | 67,726 | 56,347 | ||
Other assets | 6,124 | |||
Total assets | 730,709 | 1,007,115 | ||
Liabilities | ||||
Retail notes, certificates and secured borrowings | [1] | 229,719 | 636,774 | |
Payable on Structured Program borrowings | [1] | 65,451 | 152,808 | |
Other liabilities | 12,911 | 12,270 | ||
Total liabilities | 308,081 | 801,852 | ||
Principal balance of underlying loan servicing rights | 10,300,000 | 10,100,000 | ||
Fair Value, Measurements, Recurring | ||||
Securities available for sale: | ||||
Servicing assets | 67,726 | 56,347 | $ 89,680 | |
Liabilities | ||||
Retail notes, certificates and secured borrowings | 229,719 | 636,774 | ||
Loans held for sale at fair value | Fair Value, Measurements, Recurring | ||||
Assets | ||||
Loans held for sale at fair value | 142,370 | 121,902 | ||
U.S. agency residential mortgage-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 123,699 | |||
Asset-backed senior securities and subordinated securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 39,891 | 91,887 | ||
U.S. agency securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 26,172 | |||
Other asset-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 26,133 | 200 | ||
Commercial mortgage-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 26,098 | |||
CLUB Certificate asset-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 18,285 | 50,139 | ||
Municipal securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 3,252 | |||
Level 1 Inputs | ||||
Assets | ||||
Loans held for sale at fair value | 0 | 0 | ||
Retail and certificate loans held for investment at fair value | 0 | 0 | ||
Other loans held for investment at fair value | 0 | 0 | ||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | 0 | ||
Servicing assets | 0 | 0 | ||
Other assets | 0 | |||
Total assets | 0 | 0 | ||
Liabilities | ||||
Retail notes, certificates and secured borrowings | 0 | 0 | ||
Payable on Structured Program borrowings | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 1 Inputs | U.S. agency residential mortgage-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | |||
Level 1 Inputs | Asset-backed senior securities and subordinated securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 1 Inputs | U.S. agency securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | |||
Level 1 Inputs | Other asset-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 1 Inputs | Commercial mortgage-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | |||
Level 1 Inputs | CLUB Certificate asset-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 1 Inputs | Municipal securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | |||
Level 2 Inputs | ||||
Assets | ||||
Loans held for sale at fair value | 0 | 0 | ||
Retail and certificate loans held for investment at fair value | 0 | 0 | ||
Other loans held for investment at fair value | 0 | 0 | ||
Securities available for sale: | ||||
Securities available for sale at fair value | 233,483 | 75,572 | ||
Servicing assets | 0 | 0 | ||
Other assets | 2,812 | |||
Total assets | 236,295 | 75,572 | ||
Liabilities | ||||
Retail notes, certificates and secured borrowings | 0 | 0 | ||
Payable on Structured Program borrowings | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 2 Inputs | U.S. agency residential mortgage-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 123,699 | |||
Level 2 Inputs | Asset-backed senior securities and subordinated securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 28,129 | 75,372 | ||
Level 2 Inputs | U.S. agency securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 26,172 | |||
Level 2 Inputs | Other asset-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 26,133 | 200 | ||
Level 2 Inputs | Commercial mortgage-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 26,098 | |||
Level 2 Inputs | CLUB Certificate asset-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 2 Inputs | Municipal securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 3,252 | |||
Level 3 Inputs | ||||
Assets | ||||
Loans held for sale at fair value | 142,370 | 121,902 | ||
Retail and certificate loans held for investment at fair value | 229,719 | 636,686 | ||
Other loans held for investment at fair value | 21,240 | 49,954 | ||
Securities available for sale: | ||||
Securities available for sale at fair value | 30,047 | 66,654 | ||
Servicing assets | 67,726 | 56,347 | ||
Other assets | 3,312 | |||
Total assets | 494,414 | 931,543 | ||
Liabilities | ||||
Retail notes, certificates and secured borrowings | 229,719 | 636,774 | ||
Payable on Structured Program borrowings | 65,451 | 152,808 | ||
Other liabilities | 12,911 | 12,270 | ||
Total liabilities | 308,081 | 801,852 | ||
Level 3 Inputs | U.S. agency residential mortgage-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | |||
Level 3 Inputs | Asset-backed senior securities and subordinated securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 11,762 | 16,515 | ||
Level 3 Inputs | U.S. agency securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | |||
Level 3 Inputs | Other asset-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 3 Inputs | Commercial mortgage-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 0 | |||
Level 3 Inputs | CLUB Certificate asset-backed securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | 18,285 | $ 50,139 | ||
Level 3 Inputs | Municipal securities | ||||
Securities available for sale: | ||||
Securities available for sale at fair value | $ 0 | |||
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Asset-backed subordinated securities related to Company-sponsored Structured Program transactions | |
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | |
Transfers out of Level 3 | $ 517 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements (Detail) - Level 3 Inputs - Servicing Assets | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.62% |
Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.62% |
Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.62% |
Discount rates | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 7.50% | 4.80% |
Discount rates | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 16.40% | 16.40% |
Discount rates | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 10.00% | 9.90% |
Net cumulative expected loss rates | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 2.40% | 4.50% |
Net cumulative expected loss rates | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 26.40% | 26.30% |
Net cumulative expected loss rates | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 10.20% | 12.50% |
Cumulative expected prepayment rates | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 32.10% | 27.00% |
Cumulative expected prepayment rates | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 45.90% | 38.90% |
Cumulative expected prepayment rates | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 38.40% | 31.20% |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Sensitivity of Fair Value of Loans Invested in by the Company, Asset-backed Securities Related to Structured Program Transactions and Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale at fair value | $ 142,370 | $ 121,902 | |
Servicing assets | 67,726 | 56,347 | |
Level 3 Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale at fair value | 142,370 | 121,902 | |
Servicing assets | 67,726 | 56,347 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | 67,726 | 56,347 | $ 89,680 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Servicing Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | 67,726 | 56,347 | |
Discount rates, impact of 100 basis point increase | (558) | (455) | |
Discount rates, impact of 200 basis point increase | (1,115) | (911) | |
Expected credit loss on rates on underlying loans, 10% adverse change | (693) | (346) | |
Expected credit loss on rates on underlying loans, 20% adverse change | (1,386) | (691) | |
Expected prepayment rates, 10% adverse change | (2,401) | (1,596) | |
Expected prepayment rates, 20% adverse change | (4,802) | (3,192) | |
Loans held for sale at fair value | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale at fair value | 142,370 | 121,902 | |
Discount rates, impact of 100 basis point increase | (1,540) | (1,151) | |
Discount rates, impact of 200 basis point increase | (3,055) | (2,282) | |
Expected credit loss rates on underlying loans, 10% adverse change | (608) | (1,099) | |
Expected credit loss rates on underlying loans, 20% adverse change | (1,236) | (2,220) | |
Expected prepayment rates, 10% adverse change | (1,450) | (273) | |
Expected prepayment rates, 20% adverse change | $ (2,997) | $ (556) | |
Loans held for sale at fair value | Fair Value, Measurements, Recurring | Expected weighted-average life (in years) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected weighted-average life (in years) | 1 year 3 months 18 days | 1 year 1 month 6 days |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Fair Value Reconciliation (Detail) - Loans Invested in by Company - Loans Held For Sale - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans | ||
Outstanding principal balance, beginning | $ 132,600 | $ 747,394 |
Valuation adjustment, beginning | (10,698) | (25,039) |
Fair value, beginning | 121,902 | 722,355 |
Outstanding principal balance, purchases | 7,507,695 | 1,568,844 |
Valuation adjustment, purchases | (1,629) | (6) |
Fair value, purchases | 7,506,066 | 1,568,838 |
Outstanding principal balance, transfers (to) from loans held for investment and/or loans held for sale | (41,431) | |
Valuation adjustment, transfers (to) from loans held for investment and/or loans held for sale | 0 | |
Fair value, transfers (to) from loans held for investment and/or loans held for sale | (41,431) | |
Outstanding principal balance, sales | (7,386,633) | (1,907,446) |
Valuation adjustment, sales | 5,124 | 87,723 |
Fair value, sales | (7,381,509) | (1,819,723) |
Outstanding principal balance, principal payments and retirements | (98,530) | (207,483) |
Valuation adjustment, principal payments and retirements | 0 | 0 |
Fair value, principal payments and retirements | (98,530) | (207,483) |
Outstanding principal balance, charge-offs, net of recoveries | (7,939) | (27,278) |
Valuation adjustment, charge-offs, net of recoveries | 3,441 | 25,627 |
Fair value, charge-offs, net of recoveries | (4,498) | (1,651) |
Outstanding principal balance, change in fair value recorded in earnings | 0 | 0 |
Valuation adjustment, change in fair value recorded in earnings | (1,061) | (99,003) |
Fair value, change in fair value recorded in earnings | (1,061) | (99,003) |
Outstanding principal balance, ending | 147,193 | 132,600 |
Valuation adjustment, ending | (4,823) | (10,698) |
Fair value, ending | $ 142,370 | $ 121,902 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured Using Different Market Servicing Rates and Different Prepayment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Change in rate | 0.10% | 0.10% | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted-average market servicing rate assumptions | 0.62% | 0.62% | |
Servicing rate increase by 0.10% | $ (9,495) | $ (7,379) | |
Servicing rate decrease by 0.10% | $ 9,495 | $ 7,379 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Assets, Changes in fair value due to: | ||
Fair value at beginning of period | $ 56,347 | |
Fair value at end of period | 67,726 | $ 56,347 |
Fair Value, Measurements, Recurring | ||
Servicing Assets, Changes in fair value due to: | ||
Fair value at beginning of period | 56,347 | 89,680 |
Issuances | 69,075 | 33,990 |
Change in fair value, included in Marketplace Revenue | (56,561) | (58,730) |
Other net changes included in Deferred Revenue | (1,135) | (8,593) |
Fair value at end of period | $ 67,726 | $ 56,347 |
Fair Value of Assets and Lia_10
Fair Value of Assets and Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Loans held for sale at fair value | $ 142,370 | $ 121,902 |
Other assets | 6,124 | |
Total assets | 730,709 | 1,007,115 |
Liabilities | ||
Other liabilities | 12,911 | 12,270 |
Total liabilities | 308,081 | 801,852 |
Level 1 Inputs | ||
Assets | ||
Loans held for sale at fair value | 0 | 0 |
Other assets | 0 | |
Total assets | 0 | 0 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 Inputs | ||
Assets | ||
Loans held for sale at fair value | 0 | 0 |
Other assets | 2,812 | |
Total assets | 236,295 | 75,572 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 Inputs | ||
Assets | ||
Loans held for sale at fair value | 142,370 | 121,902 |
Other assets | 3,312 | |
Total assets | 494,414 | 931,543 |
Liabilities | ||
Other liabilities | 12,911 | 12,270 |
Total liabilities | 308,081 | 801,852 |
Carrying Amount | ||
Assets | ||
Loans held for sale at fair value | 248,878 | |
Loans and leases held for investment, net | 2,754,737 | |
Other assets | 18,274 | 914 |
Total cash and cash equivalents | 524,963 | |
Restricted cash | 103,522 | |
Total assets | 3,021,889 | 629,399 |
Liabilities | ||
Deposits | 68,405 | |
Short-term borrowings | 27,780 | 104,989 |
Advances from PPPLF | 271,933 | |
Other long-term debt | 15,455 | |
Other liabilities | 51,655 | 57,536 |
Total liabilities | 435,228 | 162,525 |
Balance at Fair Value | ||
Assets | ||
Loans held for sale at fair value | 251,101 | |
Loans and leases held for investment, net | 2,964,691 | |
Other assets | 18,274 | 914 |
Total cash and cash equivalents | 524,963 | |
Restricted cash | 103,522 | |
Total assets | 3,234,066 | 629,399 |
Liabilities | ||
Deposits | 68,405 | |
Short-term borrowings | 27,780 | 104,989 |
Advances from PPPLF | 271,933 | |
Other long-term debt | 15,455 | |
Other liabilities | 51,655 | 57,536 |
Total liabilities | 435,228 | 162,525 |
Balance at Fair Value | Level 1 Inputs | ||
Assets | ||
Loans held for sale at fair value | 0 | |
Loans and leases held for investment, net | 0 | |
Other assets | 0 | 0 |
Total cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Total assets | 0 | 0 |
Liabilities | ||
Deposits | 0 | |
Short-term borrowings | 0 | 0 |
Advances from PPPLF | 0 | |
Other long-term debt | 0 | |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Balance at Fair Value | Level 2 Inputs | ||
Assets | ||
Loans held for sale at fair value | 0 | |
Loans and leases held for investment, net | 0 | |
Other assets | 15,630 | 914 |
Total cash and cash equivalents | 524,963 | |
Restricted cash | 103,522 | |
Total assets | 15,630 | 629,399 |
Liabilities | ||
Deposits | 0 | |
Short-term borrowings | 17,595 | 65,121 |
Advances from PPPLF | 0 | |
Other long-term debt | 0 | |
Other liabilities | 22,187 | 43,984 |
Total liabilities | 39,782 | 109,105 |
Balance at Fair Value | Level 3 Inputs | ||
Assets | ||
Loans held for sale at fair value | 251,101 | |
Loans and leases held for investment, net | 2,964,691 | |
Other assets | 2,644 | 0 |
Total cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Total assets | 3,218,436 | 0 |
Liabilities | ||
Deposits | 68,405 | |
Short-term borrowings | 10,185 | 39,868 |
Advances from PPPLF | 271,933 | |
Other long-term debt | 15,455 | |
Other liabilities | 29,468 | 13,552 |
Total liabilities | $ 395,446 | $ 53,420 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Schedule of Property, Equipment and Software (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | $ 196,393 | $ 194,091 |
Accumulated depreciation and amortization | (98,397) | (97,450) |
Total property, equipment and software, net | 97,996 | 96,641 |
Internally developed software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 96,171 | 101,953 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 36,556 | 35,140 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 29,598 | 27,030 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 22,403 | 19,004 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 8,346 | 8,203 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 3,319 | 2,761 |
Software Development - In Progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | $ 14,700 | $ 13,900 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Narrative (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | [1] | $ 5,575,000 | $ 56,526,000 | $ 62,151,000 |
Property, Equipment and Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | 38,200,000 | 45,200,000 | 51,600,000 | |
Leasehold Improvements And Furniture And Fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment expense | 0 | 1,900,000 | 0 | |
Internally developed software | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment expense | $ 800,000 | $ 5,700,000 | $ 3,900,000 | |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 29, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 75,717,000 | $ 0 | ||
Amortization expense | 5,200,000 | 3,100,000 | $ 3,500,000 | |
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | |
Customer Relationships | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, amortized period | 10 years | |||
Customer Relationships | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, amortized period | 14 years | |||
Radius Bancorp, Inc | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 75,717,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 21,181 | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 54,500 | $ 39,500 |
Accumulated Amortization | (33,319) | (28,073) |
Total | $ 21,181 | $ 11,427 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Expected Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 4,847 |
2023 | 4,198 |
2024 | 3,549 |
2025 | 2,901 |
2026 | 2,252 |
Thereafter | 3,434 |
Total | $ 21,181 |
Other Assets (Detail)
Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Assets [Abstract] | |||
Operating lease assets | $ 77,316 | $ 74,037 | |
Servicing assets | 70,370 | 56,347 | |
Nonmarketable equity investments | 31,726 | 8,275 | |
Intangible assets, net | 21,181 | 11,427 | |
Other | 101,953 | 37,313 | |
Total other assets | [1] | 302,546 | 187,399 |
Principal balance of underlying loan servicing rights | $ 10,300,000 | $ 10,100,000 | |
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Interest-bearing deposits: | ||
Checking accounts | $ 1,993,809 | |
Savings and money market accounts | 856,989 | |
Certificates of deposit | 68,405 | |
Total | 2,919,203 | $ 0 |
Noninterest-bearing | 216,585 | 0 |
Total deposits | $ 3,135,788 | $ 0 |
Deposits - Maturity Schedule (D
Deposits - Maturity Schedule (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Other Liabilities Disclosure [Abstract] | |
2022 | $ 53,740 |
2023 | 13,579 |
2024 | 462 |
2025 | 178 |
2026 | 446 |
Total certificates of deposit | $ 68,405 |
Deposits - Summary of Certifica
Deposits - Summary of Certificates of Deposit Above FDIC Limit (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Other Liabilities Disclosure [Abstract] | |
Three months or less | $ 12,338 |
Over 3 months through 6 months | 806 |
Over 6 months through 12 months | 250 |
Over 12 months | 588 |
Total | $ 13,982 |
Short-term Borrowings and Lon_3
Short-term Borrowings and Long-term Debt - Narrative (Details) - USD ($) $ in Millions | Jul. 01, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Underlying assets pledged as collateral | $ 50.5 | $ 133.5 | |
PPPLF | |||
Debt Instrument [Line Items] | |||
Outstanding borrowings | 271.9 | ||
Payables to Securitization Holders | |||
Debt Instrument [Line Items] | |||
Restricted cash | 11.2 | 13.5 | |
Payables to Securitization Holders | Loans Held for Investment and Loans Held for Sale | |||
Debt Instrument [Line Items] | |||
Loans pledged as collateral | $ 148.3 | ||
Payables to Securitization Holders | Consolidated VIEs | Loans Held for Investment | Loans Related to Consolidation of Securitization Trust | |||
Debt Instrument [Line Items] | |||
Loans pledged as collateral | 62.7 | ||
Subordinated Notes | Radius Bancorp, Inc | |||
Debt Instrument [Line Items] | |||
Subordinated notes assumed | $ 15.3 | ||
Debt instrument, stated interest rate | 6.50% | ||
London Interbank Offered Rate (LIBOR) | Securities Sold under Agreements to Repurchase | Minimum | |||
Debt Instrument [Line Items] | |||
Borrowings interest rate spread (percent) | 3.12% | 3.05% | |
London Interbank Offered Rate (LIBOR) | Securities Sold under Agreements to Repurchase | Maximum | |||
Debt Instrument [Line Items] | |||
Borrowings interest rate spread (percent) | 6.72% | 4.00% | |
London Interbank Offered Rate (LIBOR) | Subordinated Notes | Radius Bancorp, Inc | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Borrowings interest rate spread (percent) | 4.64% | ||
Credit Facilities and Securities Sold under Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Aggregate debt outstanding under repurchase transactions | $ 27.8 | $ 105 | |
Payable to Securitization Note and Certificate Holders at Fair Value | Consolidated VIEs | Loans Held for Investment | Loans Related to Consolidation of Securitization Trust | |||
Debt Instrument [Line Items] | |||
Payable to Structured Program note and certificate holders | $ 65.5 | $ 152.8 |
Short-term Borrowings and Lon_4
Short-term Borrowings and Long-term Debt - Schedule of Notes, Certificates and Secured Borrowings at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Total retail notes, certificates and secured borrowings | [1] | $ 229,719 | $ 636,774 |
Fair Value, Measurements, Recurring | |||
Debt Instrument [Line Items] | |||
Retail notes | 219,435 | 583,219 | |
Certificates | 10,281 | 52,620 | |
Secured borrowings | 3 | 935 | |
Total retail notes, certificates and secured borrowings | $ 229,719 | $ 636,774 | |
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
Other Liabilities (Detail)
Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |||
Accounts payable and accrued expenses | $ 100,972 | $ 46,885 | |
Operating lease liabilities | 91,588 | 94,538 | |
Payable to investors | 22,187 | 40,286 | |
Other | 89,204 | 62,842 | |
Total other liabilities | [1] | $ 303,951 | $ 244,551 |
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Comprehensive income/loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive Income (loss), before tax | $ 5,562 | $ 2,044 | $ (526) |
Income tax effect | 0 | (5) | 216 |
Other comprehensive income (loss), net of tax | 5,562 | 2,049 | (742) |
Change in net unrealized gain (loss) on securities available for sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive Income (loss), before tax | 5,562 | 2,044 | (526) |
Income tax effect | 0 | (5) | 216 |
Other comprehensive income (loss), net of tax | 5,562 | 2,049 | (742) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive Income (loss), before tax | 5,562 | 2,044 | (526) |
Income tax effect | 0 | (5) | 216 |
Other comprehensive income (loss), net of tax | $ 5,562 | $ 2,049 | $ (742) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Accumulated other comprehensive income/loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balances | $ 724,171 | $ 900,187 | $ 870,981 |
Change in net unrealized gain (loss) on securities available for sale | 5,562 | 2,049 | (742) |
Ending balances | 850,242 | 724,171 | 900,187 |
Change in net unrealized gain (loss) on securities available for sale | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balances | 1,484 | (565) | |
Change in net unrealized gain (loss) on securities available for sale | 5,562 | 2,049 | (742) |
Ending balances | $ 7,046 | $ 1,484 | $ (565) |
Employee Incentive Plans - Sche
Employee Incentive Plans - Schedule of Stock Reserved for Future Issuance (Detail) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total reserved for future issuance (shares) | 33,363,329 | 31,318,320 |
Available for future RSU, PBRSU and stock option grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Available for grant (in shares) | 15,172,055 | 12,552,761 |
Unvested RSUs, PBRSUs and stock options outstanding (in shares) | 13,029,414 | 14,631,526 |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Available for grant (in shares) | 5,161,860 | 4,134,033 |
Employee Incentive Plans - Sc_2
Employee Incentive Plans - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 67,151 | $ 61,533 | $ 73,639 |
RSUs and PBRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 66,552 | 60,745 | 70,772 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 599 | 788 | 2,383 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 0 | $ 0 | $ 484 |
Employee Incentive Plans - Narr
Employee Incentive Plans - Narrative (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 67,151 | $ 61,533 | $ 73,639 |
Options granted (shares) | 188,626 | 0 | 0 |
Weighted average exercise price of options granted ($ per share) | $ 5.32 | ||
Weighted average grant date fair value of options granted ($ per share) | $ 6.25 | ||
Options granted in period, fair value | $ 1,200 | ||
Total intrinsic value of options exercised | 5,100 | $ 1,800 | $ 5,900 |
Total fair value of stock options vested | $ 300 | 1,000 | 2,800 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 5,792,679 | ||
Equity instruments other than options, aggregate fair value | $ 83,400 | ||
Unrecognized compensation cost related to unvested awards | $ 109,700 | ||
Unrecognized compensation cost, period for recognition | 2 years 1 month 6 days | ||
PBRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 568,285 | ||
Unrecognized compensation cost related to unvested awards | $ 10,500 | ||
Unrecognized compensation cost, period for recognition | 1 year 6 months | ||
Total stock-based compensation expense | $ 7,000 | 2,800 | 3,900 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 599 | 788 | 2,383 |
Unrecognized compensation costs | 38 | ||
Internally developed software | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, capitalized amount | $ 4,400 | $ 5,100 | $ 6,300 |
Employee Incentive Plans - RSU
Employee Incentive Plans - RSU and PBRSU Activity and Weighted Average Grant Date Fair Value table (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
RSUs | |
Number of Units | |
Unvested, beginning (shares) | shares | 11,395,112 |
Granted (shares) | shares | 5,792,679 |
Vested (shares) | shares | (5,033,976) |
Forfeited/expired (shares) | shares | (2,450,064) |
Unvested, ending (shares) | shares | 9,703,751 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning ($ per share) | $ / shares | $ 11.26 |
Granted ($ per share) | $ / shares | 14.39 |
Vested ($ per share) | $ / shares | 11.98 |
Forfeited/expired ($ per share) | $ / shares | 12.58 |
Unvested, ending ($ per share) | $ / shares | $ 12.44 |
PBRSUs | |
Number of Units | |
Unvested, beginning (shares) | shares | 1,441,311 |
Granted (shares) | shares | 568,285 |
Vested (shares) | shares | (79,604) |
Forfeited/expired (shares) | shares | (158,123) |
Unvested, ending (shares) | shares | 1,771,869 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning ($ per share) | $ / shares | $ 5.31 |
Granted ($ per share) | $ / shares | 22.54 |
Vested ($ per share) | $ / shares | 22.59 |
Forfeited/expired ($ per share) | $ / shares | 12.41 |
Unvested, ending ($ per share) | $ / shares | $ 9.72 |
Employee Incentive Plans - Opti
Employee Incentive Plans - Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | |||
Outstanding at beginning of period (shares) | 1,795,116 | ||
Grants (shares) | 188,626 | 0 | 0 |
Exercised (shares) | (264,826) | ||
Forfeited/Expired (shares) | (165,109) | ||
Outstanding at end of period (shares) | 1,553,807 | 1,795,116 | |
Options exercisable (shares) | 1,511,469 | ||
Weighted- Average Exercise Price Per Share | |||
Outstanding at beginning of period ($ per share) | $ 29.99 | ||
Granted ($ per share) | 5.32 | ||
Exercised ($ per share) | 9.22 | ||
Forfeited/Expired ($ per share) | 15.12 | ||
Outstanding at end of period ($ per share) | 32.12 | $ 29.99 | |
Options exercisable ($ per share) | $ 32.87 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted-average remaining contractual life of options outstanding | 3 years 21 days | ||
Weighted-average remaining contractual life of options exercisable | 2 years 11 months 15 days | ||
Aggregate intrinsic value of options outstanding | $ 6,913,000 | ||
Aggregate intrinsic value of options exercisable | $ 6,115,000 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Stock price ($ per share) | $ 24.18 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | $ 223,367 | $ 211,228 |
Federal | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforward | 464,800 | |
Operating loss carryforwards, not subject to expiration | 211,600 | |
Federal | Research and Development | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | 21,700 | |
State and Local Jurisdiction | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforward | 620,000 | |
Operating loss carryforwards, not subject to expiration | 36,800 | |
State and Local Jurisdiction | Research and Development | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 15,800 |
Income Taxes - Components of ta
Income Taxes - Components of tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ (1) | $ (141) |
State | 3,541 | (78) | (60) |
Total current tax expense (benefit) | 3,541 | (79) | (201) |
Deferred: | |||
Federal | (2,066) | 0 | 0 |
State | (1,611) | 0 | 0 |
Total deferred benefit | (3,677) | 0 | 0 |
Income tax benefit | $ (136) | $ (79) | $ (201) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount | |||
Tax at federal statutory rate | $ 3,873 | $ (39,399) | $ (6,499) |
State tax, net of federal tax benefit | 1,524 | (81) | (60) |
Stock-based compensation expense | (11,839) | 8,044 | 4,773 |
Research and development tax credits | (4,354) | (994) | (2,336) |
Change in valuation allowance | 7,867 | 29,728 | (802) |
Change in unrecognized tax benefit | 2,177 | 497 | 1,168 |
Non-deductible expenses | 742 | 2,278 | 3,250 |
Other | (126) | (152) | 305 |
Income tax benefit | $ (136) | $ (79) | $ (201) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss (NOL) carryforwards | $ 144,510 | $ 163,381 |
Allowance for loan and lease losses | 41,170 | 0 |
Stock-based compensation | 11,721 | 10,218 |
Reserves and accruals | 13,051 | 15,652 |
Operating lease liabilities | 25,807 | 28,032 |
Goodwill | 14,737 | 17,375 |
Intangible assets | 0 | 3,151 |
Tax credit carryforwards | 19,339 | 18,215 |
Other | 3,492 | 868 |
Total deferred tax assets | 273,827 | 256,892 |
Valuation allowance | (223,367) | (211,228) |
Deferred tax assets – net of valuation allowance | 50,460 | 45,664 |
Deferred tax liabilities: | ||
Internally developed software | (17,431) | (16,956) |
Servicing fees | (2,452) | (2,780) |
Operating lease assets | (21,614) | (22,048) |
Leases | (6,961) | 0 |
Intangible assets | (440) | 0 |
Change in tax method | 0 | (1,769) |
Other | (1,562) | (2,111) |
Total deferred tax liabilities | (50,460) | (45,664) |
Deferred tax asset (liability) – net | $ 0 | $ 0 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 17,626 | $ 15,998 | $ 13,377 |
Gross increase for tax positions related to prior years | 1,272 | 0 | 0 |
Gross increase for tax positions related to the current year | 3,614 | 1,628 | 2,621 |
Ending balance | $ 22,512 | $ 17,626 | $ 15,998 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Sales-type lease, interest income | $ 10.8 | |
Lease renewal term | 15 years | |
Security deposit | $ 0.9 | |
Letters of credit outstanding, amount | 5.5 | |
Operating lease impairment | $ 1 | $ 3.6 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Sublease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 9 years |
Leases - Components of Equipmen
Leases - Components of Equipment Finance Assets (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
Lease receivables | $ 122,927 |
Unguaranteed residual asset values | 36,837 |
Unearned income | (10,989) |
Deferred fees | 380 |
Total | $ 149,155 |
Leases- Future Minimum Lease Pa
Leases- Future Minimum Lease Payments Receivable (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 43,907 |
2023 | 35,803 |
2024 | 27,374 |
2025 | 16,235 |
2026 | 9,084 |
Thereafter | 4,382 |
Total lease payments | 136,785 |
Discount effect | (13,858) |
Present value of future minimum lease payments | $ 122,927 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease assets | $ 77,316 | $ 74,037 |
Operating lease liabilities | $ 91,588 | $ 94,538 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Leases - Net Lease Costs (Detai
Leases - Net Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Net lease costs | $ (12,624) | $ (11,200) | $ (14,865) |
Variable lease costs | 1,300 | 1,500 | 1,600 |
Occupancy | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | (18,773) | (17,346) | (19,502) |
Other non-interest income | |||
Lessee, Lease, Description [Line Items] | |||
Sublease revenue | $ 6,149 | $ 6,146 | $ 4,637 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Leased assets obtained in exchange for new and amended operating lease liabilities | $ 12,914 | $ 84 | $ 15,277 |
Leases - Future Operating Lease
Leases - Future Operating Lease Payments and Sublease Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Lease Payments | ||
2022 | $ 15,947 | |
2023 | 12,465 | |
2024 | 12,810 | |
2025 | 13,163 | |
2026 | 13,375 | |
Thereafter | 48,975 | |
Total lease payments | 116,735 | |
Discount effect | 25,147 | |
Present value of future minimum lease payments | 91,588 | $ 94,538 |
Sublease Revenue | ||
2022 | (2,918) | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total lease payments | (2,918) | |
Net | ||
2022 | 13,029 | |
2023 | 12,465 | |
2024 | 12,810 | |
2025 | 13,163 | |
2026 | 13,375 | |
Thereafter | 48,975 | |
Total lease payments | $ 113,817 |
Leases - Weighted-average Lease
Leases - Weighted-average Lease Term and Discount Rate (Details) | Dec. 31, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 8 years 5 months 4 days |
Weighted-average discount rate | 5.42% |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies [Line Items] | |||
Commitment repurchases | $ 1 | $ 3.3 | $ 5.5 |
Loss contingency accrual | 2.5 | 21.6 | |
FTC Lawsuit | |||
Commitments and Contingencies [Line Items] | |||
Loss contingency accrual | $ 18 | ||
Unfunded Loan Commitment, Commitments To Extend Credit | |||
Commitments and Contingencies [Line Items] | |||
Unfunded loan commitments | $ 110.8 |
Regulatory Requirements - Narra
Regulatory Requirements - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Regulated Operations [Abstract] | |
Common equity tier one risk-based capital ratio, internal minimum | 11.00% |
Tier one risk-based capital ratio, internal minimum | 11.00% |
Total risk-based capital ratio, internal minimum | 13.00% |
Tier one leverage ratio, internal minimum | 11.00% |
Capital benefit used in the computation of common equity tier one capital | $ 35.5 |
Regulatory Requirements - Summa
Regulatory Requirements - Summary of Regulatory Capital and Ratios (Details) $ in Millions | Dec. 31, 2021USD ($) |
LendingClub Bank | |
Amount | |
CET1 capital (1) | $ 523.7 |
Tier 1 capital | 523.7 |
Total capital | 563.7 |
Tier 1 leverage | 523.7 |
Risk-weighted assets | 3,130.4 |
Quarterly adjusted average assets | $ 3,667.7 |
Ratio | |
CET1 capital (1) | 0.167 |
Tier 1 capital | 0.167 |
Total capital | 0.180 |
Tier 1 leverage | 0.143 |
Required Minimum plus Required CCB for Non-Leverage Ratios | |
CET1 capital (1) | 0.070 |
Tier 1 capital | 0.085 |
Total capital | 0.105 |
Tier 1 leverage | 0.040 |
LendingClub | |
Amount | |
CET1 capital (1) | $ 710 |
Tier 1 capital | 710 |
Total capital | 767.9 |
Tier 1 leverage | 710 |
Risk-weighted assets | 3,333.2 |
Quarterly adjusted average assets | $ 4,301.7 |
Ratio | |
CET1 capital (1) | 0.213 |
Tier 1 capital | 0.213 |
Total capital | 0.230 |
Tier 1 leverage | 0.165 |
Required Minimum plus Required CCB for Non-Leverage Ratios | |
CET1 capital (1) | 0.070 |
Tier 1 capital | 0.085 |
Total capital | 0.105 |
Tier 1 leverage | 0.040 |
Other Non-interest Income and_3
Other Non-interest Income and Non-interest Expense - Summary of Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Other Income and Expenses [Abstract] | |||||
Referral revenue | $ 14,234 | $ 5,011 | $ 5,474 | ||
Realized losses on sales of securities available for sale and other investments | (93) | 11 | (8) | ||
Other | 13,078 | 8,420 | 8,365 | ||
Total other non-interest income | $ 27,219 | [1] | $ 13,442 | [1] | $ 13,831 |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Other Non-interest Income and_4
Other Non-interest Income and Non-interest Expense - Summary of Other Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Other Income and Expenses [Abstract] | ||||
Consumer credit services | $ 16,214 | $ 13,229 | $ 26,707 | |
Other | 45,044 | 34,533 | 37,370 | |
Total other non-interest expense | [1] | $ 61,258 | $ 47,762 | $ 64,077 |
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Segment Reporting - Statements
Segment Reporting - Statements of Operations (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Segment Reporting Information [Line Items] | ||||||||
Marketplace revenue | $ 578,580 | [1] | $ 245,314 | [1] | $ 646,735 | |||
Other non-interest income | 27,219 | [1] | 13,442 | [1] | 13,831 | |||
Total non-interest income | 605,799 | [1] | 258,756 | [1] | 660,566 | |||
Total interest income | 292,832 | [1] | 209,694 | [1] | 345,345 | |||
Interest expense | (80,001) | [1] | (150,366) | [1] | (247,304) | |||
Net interest income and fair value adjustments | 212,831 | [1] | 59,328 | [1] | 98,041 | |||
Total net revenue | 818,630 | [1] | 318,084 | [1] | 758,607 | |||
Reversal of (provision for) credit losses | [2] | (138,800) | [1] | (3,382) | [1] | 0 | ||
Non-interest expense | (661,386) | [1] | (502,319) | [1] | (789,498) | |||
Income (Loss) before income tax benefit | 18,444 | (187,617) | (30,891) | |||||
Income tax benefit (expense) | 136 | 79 | 201 | |||||
Consolidated net income (loss) | [2] | 18,580 | (187,538) | (30,690) | ||||
Capital expenditures | 34,413 | 31,147 | 50,668 | |||||
Depreciation and amortization | [1] | 44,285 | 54,030 | 59,152 | ||||
Operating Segments | LendingClub Bank | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Marketplace revenue | $ 462,821 | |||||||
Other non-interest income | 94,953 | |||||||
Total non-interest income | 557,774 | |||||||
Total interest income | 210,739 | |||||||
Interest expense | (8,412) | |||||||
Net interest income and fair value adjustments | 202,327 | |||||||
Total net revenue | 760,101 | |||||||
Reversal of (provision for) credit losses | (142,182) | |||||||
Non-interest expense | (547,799) | |||||||
Income (Loss) before income tax benefit | 70,120 | |||||||
Income tax benefit (expense) | 9,171 | |||||||
Consolidated net income (loss) | 79,291 | |||||||
Capital expenditures | 32,602 | |||||||
Depreciation and amortization | $ 4,569 | |||||||
Operating Segments | LendingClub Corporation (Parent only) | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Marketplace revenue | 115,759 | 245,314 | 646,735 | [1] | ||||
Other non-interest income | 16,718 | 13,442 | 13,831 | [1] | ||||
Total non-interest income | 132,477 | 258,756 | 660,566 | [1] | ||||
Total interest income | 82,093 | 209,694 | 345,345 | [1] | ||||
Interest expense | (71,589) | (150,366) | (247,304) | |||||
Net interest income and fair value adjustments | 10,504 | 59,328 | 98,041 | [1] | ||||
Total net revenue | 142,981 | 318,084 | 758,607 | [1] | ||||
Reversal of (provision for) credit losses | 3,382 | (3,382) | 0 | [1] | ||||
Non-interest expense | (198,039) | (502,319) | (789,498) | |||||
Income (Loss) before income tax benefit | (51,676) | (187,617) | (30,891) | |||||
Income tax benefit (expense) | 44,013 | 79 | 201 | |||||
Consolidated net income (loss) | (7,663) | (187,538) | (30,690) | |||||
Capital expenditures | 1,811 | 31,147 | 50,668 | |||||
Depreciation and amortization | 39,716 | $ 54,030 | $ 59,152 | |||||
Intercompany Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Marketplace revenue | 0 | |||||||
Other non-interest income | (84,452) | |||||||
Total non-interest income | (84,452) | |||||||
Total interest income | 0 | |||||||
Interest expense | 0 | |||||||
Net interest income and fair value adjustments | 0 | |||||||
Total net revenue | (84,452) | |||||||
Reversal of (provision for) credit losses | 0 | |||||||
Non-interest expense | 84,452 | |||||||
Income (Loss) before income tax benefit | 0 | |||||||
Income tax benefit (expense) | (53,048) | |||||||
Consolidated net income (loss) | (53,048) | |||||||
Capital expenditures | 0 | |||||||
Depreciation and amortization | $ 0 | |||||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||||||
[2] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
Segment Reporting - Balance She
Segment Reporting - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||||
Cash and cash equivalents | $ 687,126 | $ 524,963 | |||
Restricted cash | [1] | 76,460 | 103,522 | ||
Securities available for sale at fair value | 263,530 | 142,226 | |||
Loans held for sale | [1] | 391,248 | 121,902 | ||
Loans and leases held for investment, net | 2,754,737 | 0 | |||
Retail and certificate loans held for investment at fair value | [1] | 229,719 | 636,686 | ||
Other loans held for investment at fair value | [1] | 21,240 | 49,954 | ||
Property, equipment and software, net | 97,996 | 96,641 | |||
Investment in subsidiary | 0 | 0 | |||
Goodwill | 75,717 | 0 | |||
Other assets | [1] | 302,546 | 187,399 | ||
Total assets | 4,900,319 | 1,863,293 | |||
Liabilities and Equity | |||||
Total deposits | 3,135,788 | 0 | |||
Short-term borrowings | 27,780 | 104,989 | |||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 271,933 | 0 | |||
Retail notes, certificates and secured borrowings at fair value | [1] | 229,719 | 636,774 | ||
Payable on Structured Program borrowings | [1] | 65,451 | 152,808 | ||
Other long-term debt | 15,455 | 0 | |||
Other liabilities | [1] | 303,951 | 244,551 | ||
Total liabilities | 4,050,077 | 1,139,122 | |||
Total equity | 850,242 | 724,171 | $ 900,187 | $ 870,981 | |
Total liabilities and equity | 4,900,319 | 1,863,293 | |||
Operating Segments | LendingClub Bank | |||||
Assets | |||||
Cash and cash equivalents | 659,919 | 0 | |||
Restricted cash | 0 | 0 | |||
Securities available for sale at fair value | 205,730 | 0 | |||
Loans held for sale | 335,449 | 0 | |||
Loans and leases held for investment, net | 2,754,737 | 0 | |||
Retail and certificate loans held for investment at fair value | 0 | 0 | |||
Other loans held for investment at fair value | 0 | 0 | |||
Property, equipment and software, net | 36,424 | 0 | |||
Investment in subsidiary | 0 | 0 | |||
Goodwill | 75,717 | 0 | |||
Other assets | 254,075 | 0 | |||
Total assets | 4,322,051 | 0 | |||
Liabilities and Equity | |||||
Total deposits | 3,196,929 | 0 | |||
Short-term borrowings | 165 | 0 | |||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 271,933 | 0 | |||
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |||
Payable on Structured Program borrowings | 0 | 0 | |||
Other long-term debt | 0 | 0 | |||
Other liabilities | 218,775 | 0 | |||
Total liabilities | 3,687,802 | 0 | |||
Total equity | 634,249 | 0 | |||
Total liabilities and equity | 4,322,051 | 0 | |||
Operating Segments | LendingClub Corporation (Parent only) | |||||
Assets | |||||
Cash and cash equivalents | 88,268 | 524,963 | |||
Restricted cash | 76,540 | 103,522 | |||
Securities available for sale at fair value | 57,800 | 142,226 | |||
Loans held for sale | 55,799 | 121,902 | |||
Loans and leases held for investment, net | 0 | 0 | |||
Retail and certificate loans held for investment at fair value | 229,719 | 636,686 | |||
Other loans held for investment at fair value | 21,240 | 49,954 | |||
Property, equipment and software, net | 61,572 | 96,641 | |||
Investment in subsidiary | 557,577 | 0 | |||
Goodwill | 0 | 0 | |||
Other assets | 168,042 | 187,399 | |||
Total assets | 1,316,557 | 1,863,293 | |||
Liabilities and Equity | |||||
Total deposits | 0 | 0 | |||
Short-term borrowings | 27,615 | 104,989 | |||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 0 | 0 | |||
Retail notes, certificates and secured borrowings at fair value | 229,719 | 636,774 | |||
Payable on Structured Program borrowings | 65,451 | 152,808 | |||
Other long-term debt | 15,455 | 0 | |||
Other liabilities | 150,727 | 244,551 | |||
Total liabilities | 488,967 | 1,139,122 | |||
Total equity | 827,590 | 724,171 | |||
Total liabilities and equity | 1,316,557 | 1,863,293 | |||
Intercompany Eliminations | |||||
Assets | |||||
Cash and cash equivalents | (61,061) | 0 | |||
Restricted cash | (80) | 0 | |||
Securities available for sale at fair value | 0 | 0 | |||
Loans held for sale | 0 | 0 | |||
Loans and leases held for investment, net | 0 | 0 | |||
Retail and certificate loans held for investment at fair value | 0 | 0 | |||
Other loans held for investment at fair value | 0 | 0 | |||
Property, equipment and software, net | 0 | 0 | |||
Investment in subsidiary | (557,577) | 0 | |||
Goodwill | 0 | 0 | |||
Other assets | (119,571) | 0 | |||
Total assets | (738,289) | 0 | |||
Liabilities and Equity | |||||
Total deposits | (61,141) | 0 | |||
Short-term borrowings | 0 | 0 | |||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 0 | 0 | |||
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |||
Payable on Structured Program borrowings | 0 | 0 | |||
Other long-term debt | 0 | 0 | |||
Other liabilities | (65,551) | 0 | |||
Total liabilities | (126,692) | 0 | |||
Total equity | (611,597) | 0 | |||
Total liabilities and equity | $ (738,289) | $ 0 | |||
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
LendingClub Corporation _ Par_3
LendingClub Corporation – Parent Company Only Financial Statements - Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Non-interest income | ||||||
Marketplace revenue | $ 578,580 | [1] | $ 245,314 | [1] | $ 646,735 | |
Other non-interest income | 27,219 | [1] | 13,442 | [1] | 13,831 | |
Total non-interest income | 605,799 | [1] | 258,756 | [1] | 660,566 | |
Interest income | ||||||
Interest on loans held for sale at fair value | [1] | 29,540 | 72,876 | 109,493 | ||
Interest on retail and certificate loans held for investment at fair value | [1] | 57,684 | 115,952 | 214,395 | ||
Interest on other loans held for investment at fair value | [1] | 4,436 | 7,688 | 1,104 | ||
Interest on securities available for sale | [1] | 11,025 | 12,125 | 14,351 | ||
Other interest income | [1] | 1,170 | 1,053 | 6,002 | ||
Total interest income | 292,832 | [1] | 209,694 | [1] | 345,345 | |
Interest expense | ||||||
Interest on short-term borrowings | [1] | 3,677 | 17,837 | 26,826 | ||
Interest on retail notes, certificates and secured borrowings | [1] | 57,684 | 115,952 | 214,395 | ||
Interest on Structured Program borrowings | [1] | 9,638 | 16,204 | 5,070 | ||
Interest on other long-term debt | [1] | 1,774 | 373 | 1,013 | ||
Total interest expense | 80,001 | [1] | 150,366 | [1] | 247,304 | |
Net interest income and fair value adjustments | 212,831 | [1] | 59,328 | [1] | 98,041 | |
Total net revenue | 818,630 | [1] | 318,084 | [1] | 758,607 | |
Reversal of credit losses | [2] | 138,800 | [1] | 3,382 | [1] | 0 |
Non-interest expense | ||||||
Compensation and benefits | [1] | 288,390 | 252,517 | 333,628 | ||
Marketing | [1] | 156,142 | 51,518 | 235,337 | ||
Equipment and software | [1] | 39,490 | 26,842 | 24,927 | ||
Occupancy | [1] | 24,249 | 27,870 | 29,367 | ||
Depreciation and amortization | [1] | 44,285 | 54,030 | 59,152 | ||
Professional services | [1] | 47,572 | 41,780 | 43,010 | ||
Other non-interest expense | [1] | 61,258 | 47,762 | 64,077 | ||
Total non-interest expense | 661,386 | [1] | 502,319 | [1] | 789,498 | |
Income (Loss) before income tax benefit | 18,444 | (187,617) | (30,891) | |||
Income tax benefit (expense) | 136 | 79 | 201 | |||
LendingClub net income (loss) | 18,580 | (187,538) | (30,745) | |||
LendingClub | ||||||
Non-interest income | ||||||
Marketplace revenue | 115,759 | 245,314 | 646,735 | |||
Other non-interest income | 16,718 | 13,442 | 13,831 | |||
Total non-interest income | 132,477 | 258,756 | 660,566 | |||
Interest income | ||||||
Interest on loans held for sale at fair value | 11,025 | 72,876 | 109,493 | |||
Interest on retail and certificate loans held for investment at fair value | 57,684 | 115,952 | 214,395 | |||
Interest on other loans held for investment at fair value | 4,436 | 7,688 | 1,104 | |||
Interest on securities available for sale | 8,922 | 12,125 | 14,351 | |||
Other interest income | 26 | 1,053 | 6,002 | |||
Total interest income | 82,093 | 209,694 | 345,345 | |||
Interest expense | ||||||
Interest on short-term borrowings | 3,676 | 17,837 | 26,826 | |||
Interest on retail notes, certificates and secured borrowings | 57,684 | 115,952 | 214,395 | |||
Interest on Structured Program borrowings | 9,638 | 16,204 | 5,070 | |||
Interest on other long-term debt | 591 | 373 | 1,013 | |||
Total interest expense | 71,589 | 150,366 | 247,304 | |||
Net interest income and fair value adjustments | 10,504 | 0 | 0 | |||
Total net revenue | 142,981 | 318,084 | 758,607 | |||
Reversal of credit losses | (3,382) | 3,382 | 0 | |||
Non-interest expense | ||||||
Compensation and benefits | 31,010 | 252,517 | 333,628 | |||
Marketing | 5,460 | 51,518 | 235,337 | |||
Equipment and software | 2,459 | 26,842 | 24,927 | |||
Occupancy | 17,751 | 27,870 | 29,367 | |||
Depreciation and amortization | 39,716 | 54,030 | 59,152 | |||
Professional services | 14,666 | 41,780 | 43,010 | |||
Other non-interest expense | 86,977 | 47,762 | 64,077 | |||
Total non-interest expense | 198,039 | 502,319 | 789,498 | |||
Income (Loss) before income tax benefit | (51,676) | |||||
Income tax benefit (expense) | 44,013 | 79 | 201 | |||
Consolidated net income (loss) | (7,663) | $ (187,538) | (30,690) | |||
Equity in undistributed earnings of subsidiary | 79,291 | |||||
LendingClub net income (loss) | $ 71,628 | $ (30,745) | ||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||||
[2] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |
LendingClub Corporation _ Par_4
LendingClub Corporation – Parent Company Only Financial Statements - Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
LendingClub net income (loss) | $ 18,580 | $ (187,538) | $ (30,745) |
LendingClub other comprehensive income (loss), net of tax | 5,562 | 2,049 | (722) |
LendingClub comprehensive income (loss) | 24,142 | $ (185,489) | (31,467) |
LendingClub | |||
Segment Reporting Information [Line Items] | |||
LendingClub net income (loss) | 71,628 | $ (30,745) | |
Net unrealized gain on securities available for sale, net of tax | 9,153 | ||
Equity in other comprehensive loss of subsidiary | (2,619) | ||
LendingClub other comprehensive income (loss), net of tax | 6,534 | ||
LendingClub comprehensive income (loss) | $ 78,162 |
LendingClub Corporation _ Par_5
LendingClub Corporation – Parent Company Only Financial Statements - Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 20, 2020 | |
Assets | ||||
Cash and due from banks | $ 35,670 | $ 5,197 | ||
Interest-bearing deposits in banks | 651,456 | 519,766 | ||
Cash and cash equivalents | 687,126 | 524,963 | ||
Restricted cash | [1] | 76,460 | 103,522 | |
Securities available for sale at fair value | 263,530 | 142,226 | ||
Loans held for sale at fair value | 142,370 | 121,902 | ||
Retail and certificate loans held for investment at fair value | [1] | 229,719 | 636,686 | |
Other loans held for investment at fair value | [1] | 21,240 | 49,954 | |
Property, equipment and software, net | 97,996 | 96,641 | ||
Other assets | [1] | 302,546 | 187,399 | |
Total assets | 4,900,319 | 1,863,293 | ||
Liabilities | ||||
Short-term borrowings | 27,780 | 104,989 | ||
Retail notes, certificates and secured borrowings at fair value | [1] | 229,719 | 636,774 | |
Payable on Structured Program borrowings | [1] | 65,451 | 152,808 | |
Other long-term debt | 15,455 | 0 | ||
Other liabilities | [1] | 303,951 | 244,551 | |
Total liabilities | 4,050,077 | 1,139,122 | ||
Equity | ||||
Common stock | 1,010 | 881 | ||
Additional paid-in capital | 1,609,820 | 1,508,020 | ||
Accumulated deficit | (767,634) | (786,214) | ||
Accumulated other comprehensive income | 7,046 | 1,484 | ||
Total liabilities and equity | 4,900,319 | 1,863,293 | ||
Securities available for sale at amortized cost | $ 256,170 | $ 159,164 | ||
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (shares) | 180,000,000 | 180,000,000 | ||
Common stock, shares outstanding (shares) | 101,043,924 | 88,149,510 | ||
Common stock, shares issued (shares) | 101,043,924 | 88,149,510 | ||
LendingClub | ||||
Assets | ||||
Cash and due from banks | $ 58,284 | $ 5,197 | ||
Interest-bearing deposits in banks | 29,984 | 519,766 | ||
Cash and cash equivalents | 88,268 | 524,963 | ||
Restricted cash | 76,540 | 103,522 | ||
Securities available for sale at fair value | 57,800 | 142,226 | ||
Loans held for sale at fair value | 55,799 | 121,902 | ||
Retail and certificate loans held for investment at fair value | 229,719 | 636,686 | ||
Other loans held for investment at fair value | 21,240 | 49,954 | ||
Property, equipment and software, net | 61,572 | 96,641 | ||
Investment in subsidiary | 634,249 | |||
Other assets | 168,042 | 187,399 | ||
Total assets | 1,393,229 | 1,863,293 | ||
Liabilities | ||||
Short-term borrowings | 27,615 | 104,989 | ||
Retail notes, certificates and secured borrowings at fair value | 229,719 | 636,774 | ||
Payable on Structured Program borrowings | 65,451 | 152,808 | ||
Other long-term debt | 15,455 | |||
Other liabilities | 150,727 | 244,551 | ||
Total liabilities | 488,967 | 1,139,122 | ||
Equity | ||||
Common stock | 1,010 | 881 | ||
Additional paid-in capital | 1,609,820 | 1,508,020 | ||
Accumulated deficit | (714,586) | (786,214) | ||
Accumulated other comprehensive income | 8,018 | 1,484 | ||
Total equity | 904,262 | 724,171 | ||
Total liabilities and equity | 1,393,229 | $ 1,863,293 | ||
Securities available for sale at amortized cost | $ 47,225 | |||
[1] | Includes amounts in variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included on the Consolidated Balance Sheets (Balance Sheet) above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. Additionally, the assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. December 31, 2021 2020 Assets of consolidated VIEs, included in total assets above Restricted cash $ 13,462 $ 15,983 Loans held for sale at fair value 41,734 98,190 Retail and certificate loans held for investment at fair value 10,281 52,620 Other loans held for investment at fair value 20,929 50,102 Other assets 584 1,270 Total assets of consolidated VIEs $ 86,990 $ 218,165 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 10,281 $ 52,620 Payable on Structured Program borrowings 65,451 152,808 Other liabilities 467 729 Total liabilities of consolidated VIEs $ 76,199 $ 206,157 |
LendingClub Corporation _ Par_6
LendingClub Corporation – Parent Company Only Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Cash Flows from Operating Activities: | ||||||
LendingClub net income (loss) | $ 18,580 | $ (187,538) | $ (30,745) | |||
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used for) operating activities: | ||||||
Income tax benefit | (3,677) | 0 | 0 | |||
Net fair value adjustments | [1] | (3,986) | 105,002 | 144,273 | ||
Reversal of credit losses | [1] | 138,800 | [2] | 3,382 | [2] | 0 |
Change in fair value of loan servicing assets | [1] | 54,108 | 58,730 | 58,172 | ||
Stock-based compensation, net | [1] | 66,759 | 61,533 | 73,639 | ||
Depreciation, amortization, and accretion | [1] | 5,575 | 56,526 | 62,151 | ||
Gain on sales of loans | [1] | (70,116) | (30,812) | (67,716) | ||
Other, net | [1] | 8,654 | 12,506 | 5,829 | ||
Net change to loans held for sale | [1] | 4,856 | 435,245 | (440,192) | ||
Net change in operating assets and liabilities: | ||||||
Other assets | [1] | (9,733) | 34,483 | 1,499 | ||
Other liabilities | [1] | 26,372 | (131,026) | (77,609) | ||
Net cash provided by (used for) operating activities | [1] | 239,869 | 418,031 | (270,644) | ||
Cash Flows from Investing Activities: | ||||||
Acquisition of company | [1] | (145,344) | 0 | 0 | ||
Cash received from acquisition | [1] | 668,236 | 0 | 0 | ||
Net change in loans and leases | [1] | (1,517,132) | 7,151 | 9,150 | ||
Net decrease in retail and certificate loans | [1] | 437,870 | 411,428 | 602,678 | ||
Proceeds from maturities and paydowns of securities available for sale | [1] | 143,402 | 225,458 | 223,980 | ||
Purchases of property, equipment and software, net | [1] | (34,413) | (31,147) | (50,668) | ||
Other investing activities | [1] | (12,747) | 400 | 561 | ||
Net cash (used for) provided by investing activities | [1] | (454,410) | 565,771 | 653,768 | ||
Cash Flows from Financing Activities: | ||||||
Principal payments on Structured Program borrowings | [1] | (90,187) | (73,710) | (58,025) | ||
Principal payments on retail notes and certificates | [1] | (438,032) | (729,405) | (1,259,203) | ||
Principal payments on short-term borrowings | [1] | (87,640) | (1,662,199) | (2,801,824) | ||
Other financing activities | [1] | (9,295) | (8,948) | (26,767) | ||
Net cash provided by (used for) financing activities | [1] | 349,642 | (842,439) | (540,060) | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 135,101 | 141,363 | (156,936) | |||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 628,485 | 487,122 | 644,058 | |||
Cash, Cash Equivalents and Restricted Cash, End of Period | 763,586 | 628,485 | 487,122 | |||
LendingClub | ||||||
Cash Flows from Operating Activities: | ||||||
LendingClub net income (loss) | 71,628 | (30,745) | ||||
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used for) operating activities: | ||||||
Equity in undistributed earnings of subsidiary | (79,291) | |||||
Income tax benefit | (44,013) | |||||
Net fair value adjustments | (5,936) | 0 | 0 | |||
Reversal of credit losses | (3,382) | 3,382 | $ 0 | |||
Change in fair value of loan servicing assets | 37,138 | |||||
Stock-based compensation, net | 14,506 | |||||
Depreciation, amortization, and accretion | 39,935 | |||||
Gain on sales of loans | (3,372) | |||||
Other, net | 9,107 | |||||
Net change to loans held for sale | 90,609 | |||||
Net change in operating assets and liabilities: | ||||||
Other assets | (29,556) | |||||
Other liabilities | (95,737) | |||||
Net cash provided by (used for) operating activities | 1,636 | |||||
Cash Flows from Investing Activities: | ||||||
Acquisition of company | (145,344) | |||||
Payments for investments in and advances to subsidiary | (250,001) | |||||
Cash received from acquisition | 658 | |||||
Net change in loans and leases | 1,360 | |||||
Net decrease in retail and certificate loans | 437,870 | |||||
Proceeds from maturities and paydowns of securities available for sale | 103,258 | |||||
Purchases of property, equipment and software, net | (1,811) | |||||
Other investing activities | 8,146 | |||||
Net cash (used for) provided by investing activities | 154,136 | |||||
Cash Flows from Financing Activities: | ||||||
Principal payments on Structured Program borrowings | (90,187) | |||||
Principal payments on retail notes and certificates | (438,032) | |||||
Principal payments on short-term borrowings | (81,935) | |||||
Other financing activities | (9,295) | |||||
Net cash provided by (used for) financing activities | (619,449) | |||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (463,677) | |||||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 628,485 | |||||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 164,808 | $ 628,485 | ||||
[1] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. | |||||
[2] | Prior period amounts have been reclassified to conform to the current period presentation. See “ Notes to Consolidated Financial Statements – Note 1. Summary of Significant Accounting Policies ” for additional information. |