Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Entity File Number | 001-36771 | |
Entity Registrant Name | LendingClub Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 51-0605731 | |
Entity Address, Address Line One | 595 Market Street, Suite 200, | |
Entity Address, City or Town | San Francisco, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 632-5600 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | LC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,088,696 | |
Entity Central Index Key | 0001409970 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and due from banks | $ 23,211 | $ 35,670 | |
Interest-bearing deposits in banks | 929,630 | 651,456 | |
Total cash and cash equivalents | 952,841 | 687,126 | |
Restricted cash | [1] | 66,285 | 76,460 |
Securities available for sale at fair value ($415,726 and $256,170 at amortized cost, respectively) | 359,157 | 263,530 | |
Loans held for sale (includes $62,811 and $142,370 at fair value, respectively) | [1] | 90,058 | 391,248 |
Loans and leases held for investment | 4,806,927 | 2,899,126 | |
Allowance for loan and lease losses | (303,201) | (144,389) | |
Loans and leases held for investment, net | 4,503,726 | 2,754,737 | |
Retail and certificate loans held for investment at fair value | [1] | 87,144 | 229,719 |
Other loans held for investment at fair value | [1] | 15,057 | 21,240 |
Property, equipment and software, net | 129,957 | 97,996 | |
Goodwill | 75,717 | 75,717 | |
Other assets | [1] | 495,132 | 302,546 |
Total assets | 6,775,074 | 4,900,319 | |
Deposits: | |||
Interest-bearing | 4,868,132 | 2,919,203 | |
Noninterest-bearing | 255,374 | 216,585 | |
Total deposits | 5,123,506 | 3,135,788 | |
Short-term borrowings | 4,803 | 27,780 | |
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 91,671 | 271,933 | |
Retail notes, certificates and secured borrowings at fair value | [1] | 87,144 | 229,719 |
Payable on Structured Program borrowings | [1] | 11,185 | 65,451 |
Other long-term debt | 15,300 | 15,455 | |
Other liabilities | [1] | 320,055 | 303,951 |
Total liabilities | 5,653,664 | 4,050,077 | |
Equity | |||
Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 0 shares issued and outstanding | 0 | 0 | |
Common stock, $0.01 par value; 180,000,000 shares authorized; 105,088,761 and 101,043,924 shares issued and outstanding, respectively | 1,051 | 1,010 | |
Additional paid-in capital | 1,611,627 | 1,559,616 | |
Accumulated deficit | (451,336) | (717,430) | |
Treasury stock, at cost; 7,751 and 0 shares, respectively | (98) | 0 | |
Accumulated other comprehensive income (loss) | (39,834) | 7,046 | |
Total equity | 1,121,410 | 850,242 | |
Total liabilities and equity | $ 6,775,074 | $ 4,900,319 | |
[1]Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included in the Condensed 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. September 30, 2022 December 31, 2021 Assets of consolidated VIEs, included in total assets above Restricted cash $ 8,600 $ 13,462 Loans held for sale at fair value — 41,734 Retail and certificate loans held for investment at fair value 2,940 10,281 Other loans held for investment at fair value 6,375 20,929 Other assets 218 584 Total assets of consolidated VIEs $ 18,133 $ 86,990 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 2,940 $ 10,281 Payable on Structured Program borrowings 11,185 65,451 Other liabilities 39 467 Total liabilities of consolidated VIEs $ 14,164 $ 76,199 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Statement of Financial Position [Abstract] | |||
Securities available for sale at amortized cost | $ 415,726 | $ 256,170 | |
Loans held for sale at fair value | $ 90,058 | $ 142,370 | |
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 | 0 | |
Preferred stock, outstanding (shares) | 0 | 0 | |
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 | |
Common stock, authorized (shares) | 180,000,000 | 180,000,000 | |
Common stock, shares issued (shares) | 105,088,761 | 101,043,924 | |
Common stock, shares outstanding (shares) | 105,088,761 | 101,043,924 | |
Treasury stock (in shares) | 7,751 | 0 | |
Variable Interest Entity [Abstract] | |||
Restricted cash | [1] | $ 66,285 | $ 76,460 |
Loans held for sale at fair value | 90,058 | 142,370 | |
Retail and certificate loans held for investment at fair value | [1] | 87,144 | 229,719 |
Other loans held for investment at fair value | 4,503,726 | 2,754,737 | |
Other assets | [1] | 495,132 | 302,546 |
Assets | 6,775,074 | 4,900,319 | |
Retail notes, certificates and secured borrowings at fair value | [1] | 87,144 | 229,719 |
Payable on Structured Program borrowings | [1] | 11,185 | 65,451 |
Other liabilities | [1] | 320,055 | 303,951 |
Total liabilities | 5,653,664 | 4,050,077 | |
Consolidated VIEs | |||
Statement of Financial Position [Abstract] | |||
Loans held for sale at fair value | 0 | 41,734 | |
Variable Interest Entity [Abstract] | |||
Restricted cash | 8,600 | 13,462 | |
Loans held for sale at fair value | 0 | 41,734 | |
Retail and certificate loans held for investment at fair value | 2,940 | 10,281 | |
Other loans held for investment at fair value | 6,375 | 20,929 | |
Other assets | 218 | 584 | |
Assets | 18,133 | 86,990 | |
Retail notes, certificates and secured borrowings at fair value | 2,940 | 10,281 | |
Payable on Structured Program borrowings | 11,185 | 65,451 | |
Other liabilities | 39 | 467 | |
Total liabilities | $ 14,164 | $ 76,199 | |
[1]Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included in the Condensed 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. September 30, 2022 December 31, 2021 Assets of consolidated VIEs, included in total assets above Restricted cash $ 8,600 $ 13,462 Loans held for sale at fair value — 41,734 Retail and certificate loans held for investment at fair value 2,940 10,281 Other loans held for investment at fair value 6,375 20,929 Other assets 218 584 Total assets of consolidated VIEs $ 18,133 $ 86,990 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 2,940 $ 10,281 Payable on Structured Program borrowings 11,185 65,451 Other liabilities 39 467 Total liabilities of consolidated VIEs $ 14,164 $ 76,199 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Non-interest income: | |||||
Marketplace revenue | $ 173,837 | $ 174,556 | $ 560,187 | $ 408,018 | |
Other non-interest income | 7,400 | 6,322 | 24,739 | 18,670 | |
Total non-interest income | 181,237 | 180,878 | 584,926 | 426,688 | |
Interest income: | |||||
Interest on loans held for sale | 5,879 | 8,536 | 20,459 | 22,387 | |
Interest and fees on loans and leases held for investment | 124,028 | 57,644 | 324,381 | 112,013 | |
Interest on retail and certificate loans held for investment at fair value | 3,685 | 12,172 | 15,745 | 48,448 | |
Interest on other loans held for investment at fair value | 791 | 973 | 2,015 | 3,674 | |
Interest on securities available for sale | 3,820 | 3,180 | 12,757 | 7,954 | |
Other interest income | 5,017 | 355 | 7,984 | 701 | |
Total interest income | 143,220 | 82,860 | 383,341 | 195,177 | |
Interest expense: | |||||
Interest on deposits | 15,184 | 1,899 | 24,700 | 4,612 | |
Interest on short-term borrowings | 87 | 849 | 939 | 3,116 | |
Interest on retail notes, certificates and secured borrowings | 3,685 | 12,172 | 15,745 | 48,448 | |
Interest on Structured Program borrowings | 225 | 2,120 | 1,349 | 7,996 | |
Interest on other long-term debt | 363 | 532 | 1,026 | 1,306 | |
Total interest expense | 19,544 | 17,572 | 43,759 | 65,478 | |
Net interest income | 123,676 | 65,288 | 339,582 | 129,699 | |
Total net revenue | 304,913 | 246,166 | 924,508 | 556,387 | |
Provision for credit losses | 82,739 | 37,524 | 205,814 | 93,651 | |
Non-interest expense: | |||||
Compensation and benefits | 84,916 | 73,304 | 251,629 | 209,649 | |
Marketing | 46,031 | 50,782 | 162,608 | 105,434 | |
Equipment and software | 12,491 | 10,297 | 35,998 | 27,471 | |
Occupancy | 5,051 | 6,486 | 17,279 | 19,543 | |
Depreciation and amortization | 10,681 | 10,549 | 32,277 | 33,823 | |
Professional services | 11,943 | 11,750 | 40,487 | 34,873 | |
Other non-interest expense | 15,106 | 15,607 | 46,531 | 42,373 | |
Total non-interest expense | 186,219 | 178,775 | 586,809 | 473,166 | |
Income (Loss) before income tax benefit (expense) | 35,955 | 29,867 | 131,885 | (10,430) | |
Income tax benefit (expense) | 7,243 | (2,682) | 134,209 | (98) | |
Net income (loss) | $ 43,198 | $ 27,185 | $ 266,094 | $ (10,528) | |
Common Stock | |||||
Net income (loss) per share: | |||||
Basic EPS ($ per share) | [1] | $ 0.41 | $ 0.27 | $ 2.59 | $ (0.11) |
Diluted EPS ($ per share) | [1] | $ 0.41 | $ 0.26 | $ 2.56 | $ (0.11) |
Weighted-average common shares – Basic (shares) | [1] | 104,215,594 | 99,073,507 | 102,838,645 | 96,531,725 |
Weighted-average common shares – Diluted (shares) | [1] | 105,853,938 | 106,108,662 | 104,116,240 | 96,531,725 |
Preferred stock | |||||
Net income (loss) per share: | |||||
Basic EPS ($ per share) | [1] | $ 0 | $ 0 | $ 0 | $ (0.11) |
Diluted EPS ($ per share) | [1] | $ 0 | $ 0 | $ 0 | $ (0.11) |
Weighted-average common shares – Basic (shares) | [1] | 0 | 0 | 0 | 873,217 |
Weighted-average common shares – Diluted (shares) | [1] | 0 | 0 | 0 | 873,217 |
[1]See “ Notes to Condensed Consolidated Financial Statements – Note 3. Net Income (Loss) Per Share ” for additional information. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 43,198 | $ 27,185 | $ 266,094 | $ (10,528) | |
Other comprehensive income (loss): | |||||
Net unrealized gain (loss) on securities available for sale | (24,112) | 1,106 | (63,929) | 4,496 | |
Other comprehensive income (loss), before tax | (24,112) | 1,106 | (63,929) | 4,496 | |
Income tax effect | [1] | (6,121) | 0 | (17,049) | 0 |
Other comprehensive income (loss), net of tax | (17,991) | 1,106 | (46,880) | 4,496 | |
Total comprehensive income (loss) | $ 25,207 | $ 28,291 | $ 219,214 | $ (6,032) | |
[1]Income tax effect for the three and nine months ended September 30, 2022 after the release in the second quarter of 2022 of the valuation allowance against the deferred tax asset on available for sale securities. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Preferred stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | ||||
Preferred stock, outstanding, beginning (in shares) at Dec. 31, 2019 | 0 | ||||||||||
Common stock, outstanding, beginning (shares) at Dec. 31, 2019 | 88,757,406 | ||||||||||
Beginning balance at Dec. 31, 2019 | $ 900,187 | $ 0 | $ 892 | $ 1,467,882 | $ (19,550) | $ (565) | $ (548,472) | ||||
Treasury stock, beginning (in shares) at Dec. 31, 2019 | 461,391 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock-based compensation | 51,492 | 51,492 | |||||||||
Net issuances under equity incentive plans, net of tax (in shares) | [1] | 2,744,469 | 5,658 | ||||||||
Net issuances under equity incentive plans, net of tax | [1] | (6,111) | $ 27 | (6,067) | $ (71) | ||||||
Net unrealized gain (loss) on securities available for sale, net of tax | (589) | (589) | |||||||||
Net income (loss) | (160,883) | (160,883) | |||||||||
Exchange of preferred stock for common stock and issuance of preferred stock in exchange for common stock (in shares) | 149,904 | (14,990,481) | |||||||||
Exchange of preferred stock for common stock and issuance of preferred stock in exchange for common stock | (50,204) | $ 1 | $ (150) | (50,055) | 0 | ||||||
Retirement of treasury stock (in shares) | (467,049) | ||||||||||
Retirement of treasury stock | 0 | $ (4) | (19,617) | $ 19,621 | |||||||
Preferred stock, outstanding, ending (in shares) at Sep. 30, 2020 | [2] | 149,904 | |||||||||
Common stock, outstanding, ending (shares) at Sep. 30, 2020 | [2] | 76,511,394 | |||||||||
Ending balance at Sep. 30, 2020 | [2] | 733,892 | $ 1 | $ 765 | 1,443,635 | $ 0 | (1,154) | (709,355) | |||
Treasury stock, ending (in shares) at Sep. 30, 2020 | [2] | 0 | |||||||||
Preferred stock, outstanding, beginning (in shares) at Dec. 31, 2020 | 43,000 | ||||||||||
Common stock, outstanding, beginning (shares) at Dec. 31, 2020 | 88,149,510 | ||||||||||
Beginning balance at Dec. 31, 2020 | 724,171 | $ 0 | $ 881 | 1,457,816 | $ 0 | 1,484 | (736,010) | ||||
Treasury stock, beginning (in shares) at Dec. 31, 2020 | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock-based compensation | 52,637 | 52,637 | |||||||||
Net issuances under equity incentive plans, net of tax (in shares) | [1] | 3,571,568 | 4,251 | ||||||||
Net issuances under equity incentive plans, net of tax | [1] | (7,448) | $ 36 | (7,392) | $ (92) | ||||||
Net unrealized gain (loss) on securities available for sale, net of tax | 4,496 | 4,496 | |||||||||
Net income (loss) | (10,528) | (10,528) | |||||||||
Net issuances of stock related to acquisition (in shares) | [3] | 3,761,114 | |||||||||
Net issuances of stock related to acquisition | [3] | 41,462 | $ 38 | 41,424 | |||||||
Exchange of preferred stock for common stock and issuance of preferred stock in exchange for common stock (in shares) | (43,000) | 4,300,000 | |||||||||
Exchange of preferred stock for common stock and issuance of preferred stock in exchange for common stock | 0 | $ 43 | (43) | ||||||||
Preferred stock, outstanding, ending (in shares) at Sep. 30, 2021 | 0 | ||||||||||
Common stock, outstanding, ending (shares) at Sep. 30, 2021 | 99,782,192 | ||||||||||
Ending balance at Sep. 30, 2021 | 804,790 | $ 0 | $ 998 | 1,544,442 | $ (92) | 5,980 | (746,538) | ||||
Treasury stock, ending (in shares) at Sep. 30, 2021 | 4,251 | ||||||||||
Preferred stock, outstanding, beginning (in shares) at Jun. 30, 2021 | 0 | ||||||||||
Common stock, outstanding, beginning (shares) at Jun. 30, 2021 | 98,601,148 | ||||||||||
Beginning balance at Jun. 30, 2021 | 762,359 | $ 0 | $ 986 | 1,530,314 | $ (92) | 4,874 | (773,723) | ||||
Treasury stock, beginning (in shares) at Jun. 30, 2021 | 4,251 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock-based compensation | 17,971 | 17,971 | |||||||||
Net issuances under equity incentive plans, net of tax (in shares) | 1,181,044 | 0 | |||||||||
Net issuances under equity incentive plans, net of tax | (3,831) | $ 12 | (3,843) | $ 0 | |||||||
Net unrealized gain (loss) on securities available for sale, net of tax | 1,106 | 1,106 | |||||||||
Net income (loss) | 27,185 | 27,185 | |||||||||
Preferred stock, outstanding, ending (in shares) at Sep. 30, 2021 | 0 | ||||||||||
Common stock, outstanding, ending (shares) at Sep. 30, 2021 | 99,782,192 | ||||||||||
Ending balance at Sep. 30, 2021 | $ 804,790 | $ 0 | $ 998 | 1,544,442 | $ (92) | 5,980 | (746,538) | ||||
Treasury stock, ending (in shares) at Sep. 30, 2021 | 4,251 | ||||||||||
Preferred stock, outstanding, beginning (in shares) at Dec. 31, 2021 | 0 | 0 | |||||||||
Common stock, outstanding, beginning (shares) at Dec. 31, 2021 | 101,043,924 | 101,043,924 | |||||||||
Beginning balance at Dec. 31, 2021 | $ 850,242 | $ 0 | $ 1,010 | 1,559,616 | $ 0 | 7,046 | (717,430) | ||||
Treasury stock, beginning (in shares) at Dec. 31, 2021 | 0 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock-based compensation | $ 55,608 | 55,608 | |||||||||
Net issuances under equity incentive plans, net of tax (in shares) | 4,044,837 | [1] | 7,751 | ||||||||
Net issuances under equity incentive plans, net of tax | (3,654) | [1] | $ 41 | [1] | (3,597) | [1] | $ (98) | ||||
Net unrealized gain (loss) on securities available for sale, net of tax | (46,880) | (46,880) | |||||||||
Net income (loss) | 266,094 | 266,094 | |||||||||
Net issuances of stock related to acquisition | $ 0 | ||||||||||
Preferred stock, outstanding, ending (in shares) at Sep. 30, 2022 | 0 | 0 | |||||||||
Common stock, outstanding, ending (shares) at Sep. 30, 2022 | 105,088,761 | 105,088,761 | |||||||||
Ending balance at Sep. 30, 2022 | $ 1,121,410 | $ 0 | $ 1,051 | 1,611,627 | $ (98) | (39,834) | (451,336) | ||||
Treasury stock, ending (in shares) at Sep. 30, 2022 | 7,751 | 7,751 | |||||||||
Preferred stock, outstanding, beginning (in shares) at Jun. 30, 2022 | 0 | ||||||||||
Common stock, outstanding, beginning (shares) at Jun. 30, 2022 | 103,630,776 | ||||||||||
Beginning balance at Jun. 30, 2022 | $ 1,079,117 | $ 0 | $ 1,036 | 1,594,458 | $ 0 | (21,843) | (494,534) | ||||
Treasury stock, beginning (in shares) at Jun. 30, 2022 | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock-based compensation | 18,757 | 18,757 | |||||||||
Net issuances under equity incentive plans, net of tax (in shares) | 1,457,985 | [1] | 7,751 | ||||||||
Net issuances under equity incentive plans, net of tax | (1,671) | [1] | $ 15 | [1] | (1,588) | [1] | $ (98) | ||||
Net unrealized gain (loss) on securities available for sale, net of tax | (17,991) | (17,991) | |||||||||
Net income (loss) | $ 43,198 | 43,198 | |||||||||
Preferred stock, outstanding, ending (in shares) at Sep. 30, 2022 | 0 | 0 | |||||||||
Common stock, outstanding, ending (shares) at Sep. 30, 2022 | 105,088,761 | 105,088,761 | |||||||||
Ending balance at Sep. 30, 2022 | $ 1,121,410 | $ 0 | $ 1,051 | $ 1,611,627 | $ (98) | $ (39,834) | $ (451,336) | ||||
Treasury stock, ending (in shares) at Sep. 30, 2022 | 7,751 | 7,751 | |||||||||
[1]Includes shares that were transferred to the Company to satisfy payment of all or a portion of the exercise price in connection with the exercise of stock options.[2]The first nine months of 2020 is presented to reflect the full retrospective adoption of Accounting Standards Update (ASU) 2020-06. See “Note 1. Summary of Significant Accounting Policies” for additional information.[3]Stock issued as part of the consideration paid related to the Acquisition. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | |||
Cash Flows from Operating Activities: | ||||
Net income (loss) | $ 266,094 | $ (10,528) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Net fair value adjustments | (24,277) | 6,714 | ||
Provision for credit losses | 205,814 | 93,651 | ||
Change in fair value of loan servicing assets | 53,928 | 39,584 | ||
Accretion of loan deferred fees and costs | [1] | (63,486) | (24,996) | |
Stock-based compensation, net | 50,210 | 49,321 | ||
Depreciation and amortization | [1] | 32,277 | 33,823 | |
Gain on sales of loans | (76,983) | (49,547) | ||
Income tax benefit from release of tax valuation allowance | (140,315) | 0 | ||
Other, net | [1] | 515 | 8,631 | |
Net change to loans held for sale | 42,991 | (14,756) | ||
Net change in operating assets and liabilities: | ||||
Other assets | (11,152) | (7,610) | ||
Other liabilities | 6,602 | (6,000) | ||
Net cash provided by operating activities | 342,218 | 118,287 | ||
Cash Flows from Investing Activities: | ||||
Acquisition of company | 0 | (145,344) | ||
Cash received from acquisition | 0 | 668,236 | ||
Net change in loans and leases | (1,630,858) | (1,072,274) | ||
Net decrease in retail and certificate loans | 148,963 | 362,005 | ||
Purchases of securities available for sale | (222,534) | (78,914) | ||
Proceeds from sales of securities available for sale | 0 | 106,192 | ||
Proceeds from maturities and paydowns of securities available for sale | 69,776 | 108,640 | ||
Purchases of property, equipment and software, net | (54,659) | (24,435) | ||
Other investing activities | (5,704) | 480 | ||
Net cash used for investing activities | (1,695,016) | (75,414) | ||
Cash Flows from Financing Activities: | ||||
Net change in demand deposits and savings accounts | 1,987,718 | 809,488 | ||
Proceeds from PPPLF | 0 | 325,194 | ||
Repayment on PPPLF | (180,262) | (354,211) | ||
Principal payments on retail notes and certificates | (149,115) | (362,160) | ||
Principal payments on Structured Program borrowings | (18,613) | (70,496) | ||
Principal payments on short-term borrowings | (23,396) | (69,163) | ||
Principal payments on long-term debt | 0 | (2,834) | ||
Other financing activities | (7,994) | (7,448) | ||
Net cash provided by financing activities | 1,608,338 | 268,370 | ||
Net Increase in Cash, Cash Equivalents and Restricted Cash | 255,540 | 311,243 | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 763,586 | 628,485 | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,019,126 | 939,728 | ||
Supplemental Cash Flow Information: | ||||
Cash paid for interest | 43,623 | 62,926 | ||
Cash paid for income taxes | 14,003 | 3,295 | ||
Cash paid for operating leases included in the measurement of lease liabilities | 12,394 | 15,895 | ||
Non-cash investing activity: | ||||
Loans and leases held for investment transferred to loans held for sale | 0 | 154,082 | ||
Non-cash investing and financing activity: | ||||
Net issuances of stock related to acquisition | 0 | 41,462 | [2] | |
Non-cash financing activity: | ||||
Derecognition of payable to securitization note and residual certificate holders held in consolidated VIE | 36,072 | 0 | ||
Cash, Cash Equivalents, and Restricted Cash | ||||
Cash and cash equivalents | 952,841 | |||
Restricted cash | [3] | 66,285 | ||
Total cash, cash equivalents and restricted cash | $ 1,019,126 | $ 939,728 | ||
[1]Prior period amounts have been reclassified to conform to the current period presentation.[2]Stock issued as part of the consideration paid related to the Acquisition.[3]Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included in the Condensed 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. September 30, 2022 December 31, 2021 Assets of consolidated VIEs, included in total assets above Restricted cash $ 8,600 $ 13,462 Loans held for sale at fair value — 41,734 Retail and certificate loans held for investment at fair value 2,940 10,281 Other loans held for investment at fair value 6,375 20,929 Other assets 218 584 Total assets of consolidated VIEs $ 18,133 $ 86,990 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 2,940 $ 10,281 Payable on Structured Program borrowings 11,185 65,451 Other liabilities 39 467 Total liabilities of consolidated VIEs $ 14,164 $ 76,199 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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 (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 in consolidation. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and, in the opinion of management, contain all adjustments, including normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. These estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. Results reported in interim periods are not necessarily indicative of results for the full year or any other interim period. Certain prior period amounts in the condensed consolidated financial statements and accompanying notes have been reclassified to conform to the current period presentation. The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (Annual Report) filed on February 11, 2022. Significant Accounting Policies The Company’s significant accounting policies are discussed in “ Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies ” in the Annual Report. There have been no changes to these significant accounting policies for the nine-month period ended September 30, 2022. Adoption of New Accounting Standards The Company did not adopt any new accounting standards during the nine-month period ended September 30, 2022, except as noted below. In August 2020, the Financial Accounting Standards Board (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 adopted this ASU on January 1, 2022 under the full retrospective approach. As a result of the adoption, the deemed dividend recorded in the first quarter of 2020 related to the beneficial conversion feature of the convertible Series A Preferred Stock, was reclassified from Accumulated Deficit to Additional Paid-in Capital within Equity, as shown in the following table: Nine Months Ended September 30, 2020 Additional Paid-in Capital Accumulated Deficit Issuance of preferred stock in exchange for common stock, as originally reported $ 149 $ (50,204) Adoption of ASU 2020-06 (50,204) 50,204 Issuance of preferred stock in exchange for common stock, as adjusted $ (50,055) $ — In addition, since the beneficial conversion feature is no longer recorded as a deemed dividend, the allocation of net income (loss) attributable to stockholders and the related Basic and Diluted net income (loss) per share (EPS) has been adjusted, as shown in the following table: Nine Months Ended September 30, 2020 Common Stock Preferred Stock Net income (loss) attributable to stockholders, as originally reported $ (180,172) $ 19,289 Adoption of ASU 2020-06 42,851 (42,851) Net loss attributable to stockholders, as adjusted $ (137,321) $ (23,562) Basic and Diluted EPS, as originally reported $ (2.35) $ 1.46 Adoption of ASU 2020-06 0.56 (3.25) Basic and Diluted EPS, as adjusted $ (1.79) $ (1.79) The adoption of this ASU did not impact the Company’s financial position and cash flows in the first nine months of 2020, nor did it change net loss reported in the period. New Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which, if certain criteria are met, provides optional expedients and exceptions for applying GAAP 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 are elective and may be applied prospectively upon adoption to reporting periods through December 31, 2022. The FASB has issued an exposure draft that would extend the sunset of the adoption period through December 31, 2024. The Company has not made an election to adopt this ASU and does not expect its impact would be material to the financial statements if adopted in future reporting periods. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, |
Marketplace Revenue
Marketplace Revenue | 9 Months Ended |
Sep. 30, 2022 | |
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 periods presented: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Origination fees $ 127,142 $ 129,125 $ 398,487 $ 298,486 Servicing fees 23,760 20,819 60,440 66,699 Gain on sales of loans 23,554 21,907 76,983 49,547 Net fair value adjustments (619) 2,705 24,277 (6,714) Total marketplace revenue $ 173,837 $ 174,556 $ 560,187 $ 408,018 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following tables detail the computation of the Company’s Basic and Diluted EPS of common stock and Series A Preferred Stock: Three Months Ended September 30, 2022 2021 Common Stock Common Stock Basic EPS: Net income attributable to stockholders $ 43,198 $ 27,185 Weighted-average common shares – Basic 104,215,594 99,073,507 Basic EPS $ 0.41 $ 0.27 Diluted EPS: Net income attributable to stockholders $ 43,198 $ 27,185 Weighted-average common shares – Diluted 105,853,938 106,108,662 Diluted EPS $ 0.41 $ 0.26 Nine Months Ended September 30, 2022 2021 Common Stock Common Stock Preferred Stock (1) Basic EPS: Net income (loss) attributable to stockholders $ 266,094 $ (10,434) $ (94) Weighted-average common shares – Basic 102,838,645 96,531,725 873,217 Basic EPS $ 2.59 $ (0.11) $ (0.11) Diluted EPS: Net income (loss) attributable to stockholders $ 266,094 $ (10,434) $ (94) Weighted-average common shares – Diluted 104,116,240 96,531,725 873,217 Diluted EPS $ 2.56 $ (0.11) $ (0.11) (1) Presented on an as-converted basis. There were no weighted-average common shares that were excluded from the Company’s Diluted EPS computation during the third quarters of 2022 and 2021 or during the first nine months of 2022. 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 during the first nine months of 2021: Restricted Stock Units (RSUs) and Performance-based RSUs (PBRSUs) 3,076,073 Preferred stock 873,217 Stock options 139,868 Total 4,089,158 |
Securities Available for Sale
Securities Available for Sale | 9 Months Ended |
Sep. 30, 2022 | |
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 available for sale (AFS) securities were as follows: September 30, 2022 Amortized Gross Gross Fair U.S. agency residential mortgage-backed securities $ 260,286 $ — $ (43,576) $ 216,710 U.S. agency securities 90,445 — (15,060) 75,385 Commercial mortgage-backed securities 28,007 — (4,275) 23,732 Other asset-backed securities 19,313 38 (818) 18,533 Asset-backed senior securities 9,154 — — 9,154 Asset-backed subordinated securities 2,221 5,223 — 7,444 CLUB Certificate asset-backed securities 3,018 2,830 — 5,848 Municipal securities 3,282 — (931) 2,351 Total securities available for sale (1) $ 415,726 $ 8,091 $ (64,660) $ 359,157 December 31, 2021 Amortized Gross Gross 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) $ 256,170 $ 11,104 $ (3,744) $ 263,530 (1) As of September 30, 2022 and December 31, 2021, includes $325.9 million and $236.8 million, respectively, of fair value securities pledged as collateral. 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 September 30, 2022 Fair Unrealized Fair Unrealized Fair Unrealized U.S. agency residential mortgage-backed securities $ 142,629 $ (23,204) $ 74,081 $ (20,372) $ 216,710 $ (43,576) U.S. agency securities 61,949 (9,608) 13,436 (5,452) 75,385 (15,060) Commercial mortgage-backed securities 6,388 (1,013) 17,344 (3,262) 23,732 (4,275) Other asset-backed securities 8,973 (156) 5,388 (662) 14,361 (818) Municipal securities — — 2,351 (931) 2,351 (931) Total securities with unrealized losses $ 219,939 $ (33,981) $ 112,600 $ (30,679) $ 332,539 $ (64,660) 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 $ 190,246 $ (3,744) $ — $ — $ 190,246 $ (3,744) There was no activity in the allowance for AFS securities during the third quarter and first nine months of 2022. The following table presents the activity in the allowance for AFS securities, by major security type, during the third quarter and first nine months of 2021: Credit Valuation Allowance CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Balance at June 30, 2021 $ (40) $ (552) $ (592) Reversal of credit loss expense 40 456 496 Balance at September 30, 2021 $ — $ (96) $ (96) Credit Valuation Allowance CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Balance at December 31, 2020 $ (4,190) $ (14,546) $ (18,736) Reversal of credit loss expense 236 3,052 3,288 Reversal of allowance arising from PCD financial assets 3,954 11,398 15,352 Balance at September 30, 2021 $ — $ (96) $ (96) The contractual maturities of AFS securities were as follows: September 30, 2022 Amortized Cost Fair Value Weighted- average Yield (1) Due after 1 year through 5 years: U.S. agency securities 9,000 8,640 Commercial mortgage-backed securities 1,042 919 Total due after 1 year through 5 years 10,042 9,559 3.33 % Due after 5 years through 10 years: U.S. agency residential mortgage-backed securities 6,604 6,093 U.S. agency securities 12,847 11,287 Commercial mortgage-backed securities 2,871 2,367 Other asset-backed securities 649 656 Municipal securities 625 516 Total due after 5 years through 10 years 23,596 20,919 2.63 % Due after 10 years: U.S. agency residential mortgage-backed securities 253,682 210,617 U.S. agency securities 68,598 55,458 Commercial mortgage-backed securities 24,094 20,446 Other asset-backed securities 18,664 17,877 Municipal securities 2,657 1,835 Total due after 10 years 367,695 306,233 2.44 % Asset-backed securities related to Structured Program transactions 14,393 22,446 56.16 % Total securities available for sale $ 415,726 $ 359,157 4.33 % (1) The weighted-average yield is computed using the amortized cost at September 30, 2022. There were no sales of AFS securities during the third quarters of 2022 and 2021 or the first nine months of 2022. Proceeds and gross realized gains and losses from sales of AFS securities during the first nine months of 2021 were as follows: Proceeds $ 106,192 Gross realized gains $ 708 Gross realized losses $ (952) |
Loans and Leases Held for Inves
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2022 | |
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 Losses LendingClub records certain loans and leases held for investment (HFI) at amortized cost, whereas loans initially classified as held for sale (HFS) are recorded at fair value. 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 $27.0 million and $15.6 million as of September 30, 2022 and December 31, 2021, respectively . Loans and Leases Held for Investment The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following tables present the components of each portfolio segment by class of financing receivable: September 30, 2022 December 31, 2021 Unsecured personal $ 3,642,254 $ 1,804,578 Residential mortgages 197,776 151,362 Secured consumer 180,768 65,976 Total consumer loans held for investment 4,020,798 2,021,916 Equipment finance (1) 167,447 149,155 Commercial real estate 372,406 310,399 Commercial and industrial (2) 246,276 417,656 Total commercial loans and leases held for investment 786,129 877,210 Total loans and leases held for investment 4,806,927 2,899,126 Allowance for loan and lease losses (303,201) (144,389) Loans and leases held for investment, net (3) $ 4,503,726 $ 2,754,737 (1) Comprised of sales-type leases for equipment. See “Note 16. Leases” for additional information. (2) Includes $89.4 million and $268.3 million of pledged loans under the Paycheck Protection Program (PPP) as of September 30, 2022 and December 31, 2021, respectively. (3) As of September 30, 2022 and December 31, 2021, the Company had $278.4 million and $149.2 million in loans pledged as collateral under the Federal Reserve Bank (FRB) Discount Window, respectively. September 30, 2022 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 4,020,798 $ 288,138 $ 3,732,660 7.2 % Total commercial loans and leases held for investment (2) 786,129 15,063 771,066 1.9 % Total loans and leases held for investment (2) $ 4,806,927 $ 303,201 $ 4,503,726 6.3 % 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) As of September 30, 2022, excluding the $89.4 million of PPP loans, the ALLL represented 2.2% of commercial loans and leases HFI and 6.4% of total loans and leases HFI. As of December 31, 2021, excluding $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: Three Months Ended September 30, 2022 2021 Consumer Commercial Total Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ 228,184 $ 15,076 $ 243,260 $ 54,058 $ 17,023 $ 71,081 Credit loss expense for loans and leases held for investment 81,935 664 82,599 37,695 (562) 37,133 Charge-offs (1) (22,944) (784) (23,728) (3,142) (1,194) (4,336) Recoveries 963 107 1,070 20 838 858 Allowance for loan and lease losses, end of period $ 288,138 $ 15,063 $ 303,201 $ 88,631 $ 16,105 $ 104,736 Reserve for unfunded lending commitments, beginning of period $ 136 $ 1,889 $ 2,025 $ — $ 390 $ 390 Credit loss expense for unfunded lending commitments (78) 218 140 50 837 887 Reserve for unfunded lending commitments, end of period (2) $ 58 $ 2,107 $ 2,165 $ 50 $ 1,227 $ 1,277 Nine Months Ended September 30, 2022 2021 Consumer Commercial Total Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ 128,812 $ 15,577 $ 144,389 $ — $ — $ — Credit loss expense for loans and leases held for investment (3) 203,967 913 204,880 91,194 4,468 95,662 Initial allowance for PCD loans acquired during the period (4) — — — 603 11,837 12,440 Charge-offs (1) (46,668) (2,001) (48,669) (3,232) (1,350) (4,582) Recoveries 2,027 574 2,601 66 1,150 1,216 Allowance for loan and lease losses, end of period $ 288,138 $ 15,063 $ 303,201 $ 88,631 $ 16,105 $ 104,736 Reserve for unfunded lending commitments, beginning of period $ — $ 1,231 $ 1,231 $ — $ — $ — Credit loss expense for unfunded lending commitments 58 876 934 50 1,227 1,277 Reserve for unfunded lending commitments, end of period (2) $ 58 $ 2,107 $ 2,165 $ 50 $ 1,227 $ 1,277 (1) 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. (2) Relates to $144.0 million and $115.5 million of unfunded commitments as of September 30, 2022 and 2021, respectively. (3) Includes $6.9 million of credit loss expense for Radius loans at Acquisition for the first quarter of 2021. (4) 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 the first quarter of 2021. 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 during the first quarter of 2021. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million for the first quarter of 2021. 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 tables present the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status and origination year: September 30, 2022 Term Loans and Leases by Origination Year 2022 2021 2020 2019 2018 Prior Total Unsecured personal Current $ 2,458,166 $ 1,146,225 $ — $ — $ — $ — $ 3,604,391 30-59 days past due 5,758 9,041 — — — — 14,799 60-89 days past due 4,038 8,425 — — — — 12,463 90 or more days past due 2,520 8,081 — — — — 10,601 Total unsecured personal 2,470,482 1,171,772 — — — — 3,642,254 Residential mortgages Current 43,130 59,682 33,680 21,835 4,573 34,539 197,439 30-59 days past due — — — — — — — 60-89 days past due — — — — — — — 90 or more days past due — — — — 4 333 337 Total residential mortgages 43,130 59,682 33,680 21,835 4,577 34,872 197,776 Secured consumer Current 133,644 42,910 — 2,563 — — 179,117 30-59 days past due 596 389 — — — — 985 60-89 days past due 270 234 — — — — 504 90 or more days past due 67 95 — — — — 162 Total secured consumer 134,577 43,628 — 2,563 — — 180,768 Total consumer loans held for investment $ 2,648,189 $ 1,275,082 $ 33,680 $ 24,398 $ 4,577 $ 34,872 $ 4,020,798 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 tables present the classes of financing receivables within the commercial portfolio segment by risk rating and origination year: September 30, 2022 Term Loans and Leases by Origination Year 2022 2021 2020 2019 2018 Prior Total Equipment finance Pass $ 55,947 $ 42,853 $ 28,066 $ 20,145 $ 12,751 $ 3,704 $ 163,466 Special mention — 2,198 — 1,603 — — 3,801 Substandard — — — — 180 — 180 Doubtful — — — — — — — Loss — — — — — — — Total equipment finance 55,947 45,051 28,066 21,748 12,931 3,704 167,447 Commercial real estate Pass 84,608 56,575 50,985 52,967 38,941 63,589 347,665 Special mention — — 8,415 262 1,242 842 10,761 Substandard — — — 658 2,403 10,364 13,425 Doubtful — — — — — — — Loss — — — — — 555 555 Total commercial real estate 84,608 56,575 59,400 53,887 42,586 75,350 372,406 Commercial and industrial Pass 37,626 126,661 26,382 15,190 4,702 12,710 223,271 Special mention — 176 1,962 1,852 166 473 4,629 Substandard — 4,746 4,678 3,812 1,668 1,839 16,743 Doubtful — — 111 — — 287 398 Loss — — — — 6 1,229 1,235 Total commercial and industrial (1) 37,626 131,583 33,133 20,854 6,542 16,538 246,276 Total commercial loans and leases held for investment $ 178,181 $ 233,209 $ 120,599 $ 96,489 $ 62,059 $ 95,592 $ 786,129 (1) Includes $89.4 million of PPP loans. 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 tables present an analysis of the past due loans and leases HFI within the commercial portfolio segment: September 30, 2022 30-59 60-89 90 or More Days Total Equipment finance $ — $ — $ — $ — Commercial real estate — 101 452 553 Commercial and industrial (1) — — 1,650 1,650 Total commercial loans and leases held for investment $ — $ 101 $ 2,102 $ 2,203 December 31, 2021 30-59 60-89 90 or More Total 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 tables. 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, and are charged-off no later than 120 days past due. The following table presents nonaccrual loans and leases: September 30, 2022 December 31, 2021 Nonaccrual (1) Nonaccrual with no related ACL (2) Nonaccrual (1) Nonaccrual with no related ACL (2) Unsecured personal $ 10,601 $ — $ 1,676 $ — Residential mortgages 337 337 1,373 1,373 Secured consumer 162 — 3,011 3,011 Total nonaccrual consumer loans held for investment 11,100 337 6,060 4,384 Equipment finance 180 — 603 — Commercial real estate 1,013 1,013 989 989 Commercial and industrial 12,214 1,338 2,333 1,061 Total nonaccrual commercial loans and leases held for investment 13,407 2,351 3,925 2,050 Total nonaccrual loans and leases held for investment $ 24,507 $ 2,688 $ 9,985 $ 6,434 (1) Excluding PPP loans, there were no loans and leases that were 90 days or more past due and accruing as of both September 30, 2022 and December 31, 2021. (2) Subset of total nonaccrual loans and leases. September 30, 2022 December 31, 2021 Nonaccrual Nonaccrual Ratios (1) Nonaccrual Nonaccrual Ratios (1) Total nonaccrual consumer loans held for investment $ 11,100 0.28 % $ 6,060 0.30 % Total nonaccrual commercial loans and leases held for investment 13,407 1.71 % 3,925 0.45 % Total nonaccrual loans and leases held for investment (2) $ 24,507 0.51 % $ 9,985 0.34 % (1) Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI. (2) Nonaccruing loans and leases represented 0.52% and 0.38% of total loans and leases HFI, excluding PPP loans, as of September 30, 2022 and December 31, 2021, respectively. 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 ACLs are recorded as additions to or reversals of credit losses on the Condensed Consolidated Statements of Income (Income Statement). There were no acquired PCD loans during the third quarter and first nine months of 2022 or the third quarter of 2021. Acquired PCD loans during the first nine months of 2021 were as follows: Purchase price $ 337,118 Allowance for expected credit losses (1) 30,378 Discount attributable to other factors 12,204 Par value $ 379,700 (1) For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date for the first quarter of 2021. 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 during the first quarter of 2021. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million for the first quarter of 2021. |
Securitizations and Variable In
Securitizations and Variable Interest Entities | 9 Months Ended |
Sep. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Securitization and Variable Interest Entities | Securitizations and Variable Interest Entities VIE Assets and Liabilities The following tables provide the classifications of assets and liabilities on the Balance Sheet for the Company’s transactions with consolidated and unconsolidated VIEs. Additionally, the assets and liabilities in the tables below exclude intercompany balances that eliminate in consolidation: September 30, 2022 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 8,600 $ — $ 8,600 Securities available for sale at fair value — 22,445 22,445 Retail and certificate loans held for investment at fair value 2,940 — 2,940 Other loans held for investment at fair value 6,375 — 6,375 Other assets 218 11,351 11,569 Total assets $ 18,133 $ 33,796 $ 51,929 Liabilities Retail notes, certificates and secured borrowings at fair value $ 2,940 $ — $ 2,940 Payable on Structured Program borrowings 11,185 — 11,185 Other liabilities 39 — 39 Total liabilities 14,164 — 14,164 Total net assets $ 3,969 $ 33,796 $ 37,765 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 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: September 30, 2022 Total VIE Assets Securities Available for Sale Other Assets Net Assets Carrying value $ 625,017 $ 22,445 $ 11,351 $ 33,796 Total exposure N/A $ 22,445 $ 11,351 $ 33,796 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 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 financial statements: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Principal derecognized from loans securitized or sold $ — $ — $ 41,023 $ — Net gains recognized from loans securitized or sold $ — $ — $ 259 $ — Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement $ — $ — $ 2,180 $ — Cash proceeds from servicing and other administrative fees on loans securitized or sold $ 1,782 $ 5,152 $ 7,294 $ 19,600 Proceeds from sale of securities by consolidated VIE $ — $ — $ 5,320 $ — Cash proceeds for interest received on senior securities and subordinated securities $ 1,294 $ 975 $ 6,373 $ 6,586 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 September 30, 2022, the aggregate unpaid principal balance of the off-balance sheet loans related to Structured Program transactions was $574.7 million, of which $16.9 million was attributable to off-balance sheet loans that were 31 days or more past due. 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. 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 | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities For a description of the fair value hierarchy and the Company’s fair value methodologies, see “ Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies ” in the Annual Report. The Company records certain assets and liabilities at fair value as listed in the following tables. Financial Instruments, Assets and Liabilities Recorded at Fair Value The following tables present the fair value hierarchy for assets and liabilities measured at fair value: September 30, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 90,058 $ 90,058 Retail and certificate loans held for investment at fair value — — 87,144 87,144 Other loans held for investment at fair value — — 15,057 15,057 Securities available for sale: U.S. agency residential mortgage-backed securities — 216,710 — 216,710 U.S. agency securities — 75,385 — 75,385 Commercial mortgage-backed securities — 23,732 — 23,732 Asset-backed senior securities and subordinated securities — 9,154 7,444 16,598 Other asset-backed securities — 18,533 — 18,533 CLUB Certificate asset-backed securities — — 5,848 5,848 Municipal securities — 2,351 — 2,351 Total securities available for sale — 345,865 13,292 359,157 Servicing assets — — 86,518 86,518 Other assets — — 5,437 5,437 Total assets $ — $ 345,865 $ 297,506 $ 643,371 Liabilities: Retail notes, certificates and secured borrowings $ — $ — $ 87,144 $ 87,144 Payable on Structured Program borrowings — — 11,185 11,185 Other liabilities — — 11,042 11,042 Total liabilities $ — $ — $ 109,371 $ 109,371 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 mortgaged-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 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 discounted cash flow (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. The Company did not transfer any assets or liabilities in or out of Level 3 during the third quarters and first nine months of 2022 or 2021. Loans Held for Sale at Fair Value As of both September 30, 2022 and 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. Fair Value Reconciliation The following tables present additional information about Level 3 loans HFS on a recurring basis: Outstanding Principal Balance Valuation Adjustment Fair Value Balance at June 30, 2022 $ 62,761 $ 50 $ 62,811 Originations and purchases 2,298,086 — 2,298,086 Sales (2,264,859) (188) (2,265,047) Principal payments and retirements (4,592) — (4,592) Charge-offs, net of recoveries (17) 17 — Change in fair value recorded in earnings — (1,200) (1,200) Balance at September 30, 2022 $ 91,379 $ (1,321) $ 90,058 Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2021 $ 147,193 $ (4,823) $ 142,370 Originations and purchases 7,297,510 — 7,297,510 Transfers to loans held for investment (11,888) — (11,888) Sales (7,315,612) (18,979) (7,334,591) Principal payments and retirements (24,990) — (24,990) Charge-offs, net of recoveries (834) (628) (1,462) Change in fair value recorded in earnings — 23,109 23,109 Balance at September 30, 2022 $ 91,379 $ (1,321) $ 90,058 Outstanding Principal Balance Valuation Adjustment Fair Value Balance at June 30, 2021 $ 186,988 $ (6,927) $ 180,061 Originations and purchases 2,339,869 — 2,339,869 Sales (2,342,158) (85) (2,342,243) Principal payments and retirements (27,211) — (27,211) Charge-offs, net of recoveries (1,138) (209) (1,347) Change in fair value recorded in earnings — 3,031 3,031 Balance at September 30, 2021 $ 156,350 $ (4,190) $ 152,160 Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2020 $ 132,600 $ (10,698) $ 121,902 Originations and purchases 5,320,264 (1,629) 5,318,635 Sales (5,210,803) 10,568 (5,200,235) Principal payments and retirements (78,946) — (78,946) Charge-offs, net of recoveries (6,765) 3,711 (3,054) Change in fair value recorded in earnings — (6,142) (6,142) Balance at September 30, 2021 $ 156,350 $ (4,190) $ 152,160 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 September 30, 2022 and December 31, 2021, 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. S ervicing Assets Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for servicing assets relating to loans sold to investors: September 30, 2022 December 31, 2021 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 7.5 % 16.4 % 10.0 % 7.5 % 16.4 % 10.0 % Net cumulative expected loss rates (1) 1.0 % 29.8 % 12.7 % 2.4 % 26.4 % 10.2 % Cumulative expected prepayment rates (1) 30.6 % 47.0 % 39.1 % 32.1 % 45.9 % 38.4 % 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: September 30, 2022 December 31, 2021 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Servicing rate increase by 0.10% $ (11,563) $ (9,495) Servicing rate decrease by 0.10% $ 11,563 $ 9,495 The following table presents the fair value sensitivity of servicing assets to adverse changes in key assumptions: September 30, 2022 December 31, 2021 Fair value of Servicing Assets $ 86,518 $ 67,726 Discount rates 100 basis point increase $ (745) $ (558) 200 basis point increase $ (1,489) $ (1,115) Expected loss rates 10% adverse change $ (837) $ (693) 20% adverse change $ (1,673) $ (1,386) Expected prepayment rates 10% adverse change $ (2,178) $ (2,401) 20% adverse change $ (4,356) $ (4,802) Fair Value Reconciliation The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Fair value at beginning of period $ 79,427 $ 58,728 $ 67,726 $ 56,347 Issuances (1) 22,319 21,071 73,774 46,274 Change in fair value, included in Marketplace revenue (14,689) (14,984) (52,702) (39,584) Other net changes included in Deferred revenue (539) (1,242) (2,280) 536 Fair value at end of period $ 86,518 $ 63,573 $ 86,518 $ 63,573 (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: September 30, 2022 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans and leases held for investment, net $ 4,503,726 $ — $ — $ 4,786,152 $ 4,786,152 Other assets 28,638 — 27,018 1,649 28,667 Total assets $ 4,532,364 $ — $ 27,018 $ 4,787,801 $ 4,814,819 Liabilities: Deposits (1) $ 242,126 $ — $ — $ 242,126 $ 242,126 Short-term borrowings 4,803 — 4,803 — 4,803 Advances from PPPLF 91,671 — — 91,671 91,671 Other long-term debt 15,300 — — 15,300 15,300 Other liabilities 63,758 — 28,310 35,448 63,758 Total liabilities $ 417,658 $ — $ 33,113 $ 384,545 $ 417,658 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. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, Net | Property, Equipment and Software, Net Property, equipment and software, net, consist of the following: September 30, 2022 December 31, 2021 Software (1) $ 168,545 $ 121,102 Leasehold improvements 31,213 37,347 Computer equipment 27,660 29,598 Furniture and fixtures 6,064 8,346 Total property, equipment and software 233,482 196,393 Accumulated depreciation and amortization (103,525) (98,397) Total property, equipment and software, net $ 129,957 $ 97,996 (1) Includes $44.9 million and $14.7 million of development in progress for internally-developed software and $10.1 million and $2.5 million of development in progress to customize purchased software as of September 30, 2022 and December 31, 2021, respectively. Depreciation and amortization expense on property, equipment and software was $9.5 million and $28.3 million for the third quarter and first nine months of 2022, respectively. Depreciation and amortization expense on property, equipment and software was $9.0 million and $29.1 million for the third quarter and first nine months of 2021, respectively. The Company records the above expenses in “Depreciation and amortization” expense on the Income Statement. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company’s goodwill balance was $75.7 million as of both September 30, 2022 and December 31, 2021. The Company did not record any goodwill impairment expense for the third quarters and first nine months of 2022 and 2021. Goodwill is not amortized, but is subject to annual impairment tests that are performed in the fourth quarter of each calendar year. For additional detail, see “ Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies ” in the Annual Report. 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: September 30, 2022 December 31, 2021 Gross carrying value $ 54,500 $ 54,500 Accumulated amortization (36,988) (33,319) Net carrying value $ 17,512 $ 21,181 The customer relationship intangible assets are amortized on an accelerated basis from ten quarter and first nine months of 2021 was $1.3 million and $3.9 million, respectively. There was no impairment loss for the third quarters and first nine months of 2022 and 2021. The expected future amortization expense for intangible assets as of September 30, 2022, is as follows: 2022 $ 1,178 2023 4,198 2024 3,549 2025 2,901 2026 2,252 Thereafter 3,434 Total $ 17,512 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: September 30, 2022 December 31, 2021 Deferred tax asset, net (1) $ 171,206 $ — Servicing assets (2) 88,138 70,370 Operating lease assets 69,936 77,316 Nonmarketable equity investments 39,569 31,726 Intangible assets, net (3) 17,512 21,181 Other 108,771 101,953 Total other assets $ 495,132 $ 302,546 (1) See “ Note 15. Income Taxes ” for additional detail. (2) Loans underlying servicing assets had a total outstanding principal balance of $12.0 billion and $10.3 billion as of September 30, 2022 and December 31, 2021, respectively. (3) See “ Note 9. Goodwill and Intangible Assets ” for additional detail. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Deposits | Deposits Deposits consist of the following: September 30, 2022 December 31, 2021 Interest-bearing deposits: Savings and money market accounts $ 2,486,469 $ 856,989 Checking accounts 2,139,537 1,993,809 Certificates of deposit (1) 242,126 68,405 Total $ 4,868,132 $ 2,919,203 Noninterest-bearing deposits 255,374 216,585 Total deposits $ 5,123,506 $ 3,135,788 (1) Includes $9.7 million and $14.0 million in denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand as of September 30, 2022 and December 31, 2021, respectively. Total certificates of deposit at September 30, 2022 are scheduled to mature as follows: 2022 $ 10,496 2023 137,586 2024 75,236 2025 9,336 2026 945 Thereafter 8,527 Total certificates of deposit $ 242,126 |
Short-term Borrowings and Long-
Short-term Borrowings and Long-term Debt | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and December 31, 2021, the Company had $4.8 million and $27.8 million, respectively, in aggregate debt outstanding under its repurchase agreements which is amortized over time through regular principal and interest payments collected from the pledged securities. At September 30, 2022, a majority of the Company’s repurchase agreements have contractual repurchase dates ranging from October 2025 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 September 30, 2022 and December 31, 2021, the repurchase agreements bore interest rates ranging from 4.04% to 6.70% and 3.12% to 6.72%, 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 $5.0 million and $50.5 million at September 30, 2022 and December 31, 2021, respectively. Long-term Debt: Advances from PPPLF As of September 30, 2022 and December 31, 2021, outstanding PPPLF borrowings were $91.7 million and $271.9 million, respectively, 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 member payment-dependent notes, or retail notes, and certificates as a means to allow investors to invest in the corresponding loans. Investors were able to purchase these retail notes and certificates, 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 and certificates. The total balance of outstanding retail notes and certificates 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 and certificates because loan balances, interest rates and maturities were matched and offset by an equal balance of notes and certificates 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 presented: September 30, 2022 December 31, 2021 Retail notes $ 84,203 $ 219,435 Certificates and secured borrowings 2,941 10,284 Total retail notes, certificates and secured borrowings $ 87,144 $ 229,719 Payable on Structured Program Borrowings Certificate participations and securities of certain consolidated VIEs held by third-party investors are included in “Payable on Structured Program borrowings” on the Balance Sheet. As of September 30, 2022, these certificate participations and securities totaled $11.2 million and were secured by “Other loans held for investment at fair value” of $6.4 million and restricted cash of $6.2 million. As of December 31, 2021, these certificate participations and securities totaled $65.5 million and were secured by “Other loans held for investment at fair value” and “Loans held for sale” of $62.7 million and restricted cash of $11.2 million. Other Long-term Debt The Company has subordinated notes with an outstanding amount of $15.3 million as of both September 30, 2022 and December 31, 2021, which are due June 30, 2027. The rate resets quarterly at a rate equal to 3-month London Interbank Offered Rate (LIBOR) plus 4.64%, with interest payments due quarterly in arrears. The subordinated notes are junior in right to the repayment in full of all existing claims of creditors and depositors of the Company. The subordinated notes may be redeemed quarterly, in whole or in part, at par plus accrued unpaid interest at the option of the Company. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities consist of the following: September 30, 2022 December 31, 2021 Accounts payable and accrued expenses $ 92,796 $ 100,972 Operating lease liabilities 83,561 91,588 Payable to investors 28,310 22,187 Other 115,388 89,204 Total other liabilities $ 320,055 $ 303,951 |
Employee Incentive Plans
Employee Incentive Plans | 9 Months Ended |
Sep. 30, 2022 | |
Postemployment Benefits [Abstract] | |
Employee Incentive Plans | Employee Incentive Plans The Company’s equity incentive plans provide for granting awards, including RSUs, PBRSUs, cash awards and stock options to employees, officers and directors. Stock-based Compensation Stock-based compensation expense, included in “Compensation and benefits” expense on the Income Statement, was as follows for the periods presented: Three Months Ended Nine Months Ended 2022 2021 2022 2021 RSUs and PBRSUs $ 16,737 $ 16,691 $ 50,164 $ 49,130 Stock options 6 118 46 582 Total stock-based compensation expense $ 16,743 $ 16,809 $ 50,210 $ 49,712 The Company capitalized $2.2 million and $5.9 million of stock-based compensation expense associated with developing software for internal use during the third quarter and first nine months of 2022, respectively. The Company capitalized $1.2 million and $3.3 million of stock-based compensation expense associated with developing software for internal use during the third quarter and first nine months of 2021, respectively. Restricted Stock Units The following table summarizes the activities for the Company’s RSUs: Number Weighted- Unvested at December 31, 2021 9,703,751 $ 12.44 Granted 5,216,789 $ 14.26 Vested (3,773,222) $ 12.59 Forfeited/expired (1,351,990) $ 14.09 Unvested at September 30, 2022 9,795,328 $ 13.09 During the first nine months of 2022, the Company granted 5,216,789 RSUs with an aggregate fair value of $74.4 million. As of September 30, 2022, there was $114.5 million of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over the next 1.9 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 outstanding PBRSU awards have a multi-year market-based performance metric with no additional time-based vesting for any earned shares. For 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 period. The following table summarizes the activities for the Company’s PBRSUs: Number Weighted- Unvested at December 31, 2021 1,771,869 $ 9.72 Granted 743,074 $ 8.83 Vested (506,696) $ 5.48 Unvested at September 30, 2022 2,008,247 $ 10.47 During the first nine months of 2022, the Company granted 743,074 PBRSUs with an aggregate fair value of $6.6 million. As of September 30, 2022, there was $9.6 million of unrecognized compensation cost related to unvested PBRSUs, which is expected to be recognized over the next 1.2 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the third quarter of 2022, the Company recorded an income tax benefit of $7.2 million, primarily due to the release of a $5.0 million valuation allowance against the Company’s deferred tax assets and a $4.6 million tax credit, partially offset by a $2.4 million state income tax expense. For the first nine months of 2022, the Company recorded an income tax benefit of $134.2 million, primarily due to the release of a $140.3 million valuation allowance against the Company’s deferred tax assets. For the third quarter of 2021, the Company recorded an income tax expense of $2.7 million, primarily related to income tax expense for state jurisdictions that limit net operating loss utilization. For the first nine months of 2021, the Company recorded an income tax expense of $0.1 million, primarily related to income tax expense for state jurisdictions that limit net operating loss utilization, partially offset by changes in the deferred tax asset valuation allowance resulting from a deferred tax liability assumed with the Acquisition. The Company has evaluated both positive and negative evidence when assessing the recoverability of its net deferred tax assets. Several factors were considered, which primarily included the Company’s business model transition and resulting increase in profitability and the expectation of continued profitability. These factors resulted in the release of the majority of the Company’s valuation allowance against its deferred tax assets during the second quarter of 2022. The following table summarizes the Company’s net deferred tax assets: September 30, 2022 December 31, 2021 Deferred tax assets (liabilities), net $ 229,269 $ 223,367 Valuation allowance (58,063) (223,367) Deferred tax assets, net of valuation allowance $ 171,206 $ — |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
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 third quarter and first nine months of 2022, interest earned on Equipment Finance was $2.5 million and $7.7 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. For the third quarter and first nine months of 2021, interest earned on Equipment Finance was $2.9 million and $8.1 million, respectively. The components of Equipment Finance assets are as follows: September 30, 2022 December 31, 2021 Lease receivables $ 144,433 $ 122,927 Unguaranteed residual asset values 40,375 36,837 Unearned income (18,253) (10,989) Deferred fees 892 380 Total $ 167,447 $ 149,155 Future minimum lease payments based on maturity of the Company’s lessor arrangements as of September 30, 2022 were as follows: 2022 $ 12,639 2023 47,231 2024 39,093 2025 26,387 2026 15,988 Thereafter 12,412 Total lease payments $ 153,750 Discount effect (9,317) Present value of future minimum lease payments $ 144,433 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 September 30, 2022, 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. The Company was the sublessor of a portion of its office space in San Francisco for which lease terms have expired as of June 30, 2022. As of September 30, 2022, the Company pledged $0.4 million of cash and $3.9 million in letters of credit as security deposits in connection with its lease agreements. Balance sheet information related to leases was as follows: ROU Assets and Lease Liabilities Balance Sheet Classification September 30, 2022 December 31, 2021 Operating lease assets Other assets $ 69,936 $ 77,316 Operating lease liabilities (1) Other liabilities $ 83,561 $ 91,588 (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: Three Months Ended Nine Months Ended Net Lease Costs Income Statement Classification 2022 2021 2022 2021 Operating lease costs (1) Occupancy $ (3,195) $ (4,561) $ (12,041) $ (14,315) Sublease revenue Other non-interest income — 1,538 2,847 4,612 Net lease costs $ (3,195) $ (3,023) $ (9,194) $ (9,703) (1) Includes variable lease costs of $0.2 million and $0.4 million for the third quarters of 2022 and 2021, respectively. Includes variable lease costs of $0.9 million for both the first nine months of 2022 and 2021. Supplemental cash flow information related to the Company’s operating leases was as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ — $ — $ — $ 12,914 (1) Represents non-cash activity and, accordingly, is not reflected in the Condensed Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases as of September 30, 2022 were as follows: Operating Lease 2022 $ 3,143 2023 12,798 2024 13,054 2025 13,184 2026 13,375 Thereafter 48,974 Total lease payments $ 104,528 Discount effect (20,967) Present value of future minimum lease payments $ 83,561 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 September 30, 2022 Weighted-average remaining lease term (in years) 7.93 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 third quarter and first nine months of 2022, interest earned on Equipment Finance was $2.5 million and $7.7 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. For the third quarter and first nine months of 2021, interest earned on Equipment Finance was $2.9 million and $8.1 million, respectively. The components of Equipment Finance assets are as follows: September 30, 2022 December 31, 2021 Lease receivables $ 144,433 $ 122,927 Unguaranteed residual asset values 40,375 36,837 Unearned income (18,253) (10,989) Deferred fees 892 380 Total $ 167,447 $ 149,155 Future minimum lease payments based on maturity of the Company’s lessor arrangements as of September 30, 2022 were as follows: 2022 $ 12,639 2023 47,231 2024 39,093 2025 26,387 2026 15,988 Thereafter 12,412 Total lease payments $ 153,750 Discount effect (9,317) Present value of future minimum lease payments $ 144,433 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 September 30, 2022, 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. The Company was the sublessor of a portion of its office space in San Francisco for which lease terms have expired as of June 30, 2022. As of September 30, 2022, the Company pledged $0.4 million of cash and $3.9 million in letters of credit as security deposits in connection with its lease agreements. Balance sheet information related to leases was as follows: ROU Assets and Lease Liabilities Balance Sheet Classification September 30, 2022 December 31, 2021 Operating lease assets Other assets $ 69,936 $ 77,316 Operating lease liabilities (1) Other liabilities $ 83,561 $ 91,588 (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: Three Months Ended Nine Months Ended Net Lease Costs Income Statement Classification 2022 2021 2022 2021 Operating lease costs (1) Occupancy $ (3,195) $ (4,561) $ (12,041) $ (14,315) Sublease revenue Other non-interest income — 1,538 2,847 4,612 Net lease costs $ (3,195) $ (3,023) $ (9,194) $ (9,703) (1) Includes variable lease costs of $0.2 million and $0.4 million for the third quarters of 2022 and 2021, respectively. Includes variable lease costs of $0.9 million for both the first nine months of 2022 and 2021. Supplemental cash flow information related to the Company’s operating leases was as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ — $ — $ — $ 12,914 (1) Represents non-cash activity and, accordingly, is not reflected in the Condensed Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases as of September 30, 2022 were as follows: Operating Lease 2022 $ 3,143 2023 12,798 2024 13,054 2025 13,184 2026 13,375 Thereafter 48,974 Total lease payments $ 104,528 Discount effect (20,967) Present value of future minimum lease payments $ 83,561 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 September 30, 2022 Weighted-average remaining lease term (in years) 7.93 Weighted-average discount rate 5.42 % |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
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 16. 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. The Company believes such provisions are customary and consistent with institutional loan and securitization market standards. Unfunded Loan Commitments As of September 30, 2022 and December 31, 2021, the contractual amount of unfunded loan commitments was $144.0 million and $110.8 million, respectively. See “ Note 5. 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, 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. 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 assurances can be given as to the timing, outcome or consequences of any of these matters. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Requirements | Regulatory Requirements LendingClub 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 September 30, 2022 December 31, 2021 Required Minimum plus Required CCB for Non-Leverage Ratios Amount Ratio Amount Ratio CET1 capital (1) $ 760.4 15.2 % $ 523.7 16.7 % 7.0 % Tier 1 capital $ 760.4 15.2 % $ 523.7 16.7 % 8.5 % Total capital $ 825.8 16.5 % $ 563.7 18.0 % 10.5 % Tier 1 leverage $ 760.4 13.4 % $ 523.7 14.3 % 4.0 % Risk-weighted assets $ 5,018.3 N/A $ 3,130.4 N/A N/A Quarterly adjusted average assets $ 5,692.0 N/A $ 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 September 30, 2022 December 31, 2021 Required Minimum plus Required CCB for Non-Leverage Ratios Amount Ratio Amount Ratio CET1 capital (1) $ 953.2 18.3 % $ 710.0 21.3 % 7.0 % Tier 1 capital $ 953.2 18.3 % $ 710.0 21.3 % 8.5 % Total capital $ 1,033.2 19.8 % $ 767.9 23.0 % 10.5 % Tier 1 leverage $ 953.2 15.7 % $ 710.0 16.5 % 4.0 % Risk-weighted assets $ 5,210.2 N/A $ 3,333.2 N/A N/A Quarterly adjusted average assets $ 6,061.4 N/A $ 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, resulting in a CET1 capital benefit of $35 million at December 31, 2021. This benefit is phased out over a three-year transition period that commenced on January 1, 2022 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 September 30, 2022 and 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 September 30, 2022 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 during the first nine months of 2022 or during 2021. See “ Part I – Item 1. Business – Regulation and Supervision – Broad Powers to Ensure Safety and Soundness” in our Annual Report for further discussion regarding the OCC Operating Agreement. 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 | 9 Months Ended |
Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Non-interest Income and Non-interest Expense | Other Non-interest Income and Non-interest Expense Other non-interest income consists of the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Referral revenue $ 3,144 $ 4,293 $ 10,860 $ 9,649 Realized gains (losses) on sales of securities available for sale and other investments — — 36 (96) Other 4,256 2,029 13,843 9,117 Total other non-interest income $ 7,400 $ 6,322 $ 24,739 $ 18,670 Other non-interest expense consists of the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Consumer credit services $ 4,610 $ 4,266 $ 15,804 $ 11,798 Other 10,496 11,341 30,727 30,575 Total other non-interest expense $ 15,106 $ 15,607 $ 46,531 $ 42,373 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingThe 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. Income 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, servicing fee revenue for loans serviced prior to the Acquisition, and interest income and interest expense related to the Retail Program and Structured Program transactions. Financial information for the segments is presented in the following tables: LendingClub LendingClub Intercompany Consolidated Total Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2022 2021 2022 2021 2022 2021 2022 2021 Non-interest income: Marketplace revenue $ 153,504 $ 151,109 $ 9,015 $ 23,447 $ 11,318 $ — $ 173,837 $ 174,556 Other non-interest income 25,240 25,393 4,794 4,140 (22,634) (23,211) 7,400 6,322 Total non-interest income 178,744 176,502 13,809 27,587 (11,316) (23,211) 181,237 180,878 Interest income: Interest income 137,142 64,606 6,078 18,254 — — 143,220 82,860 Interest expense (15,277) (2,270) (4,267) (15,302) — — (19,544) (17,572) Net interest income 121,865 62,336 1,811 2,952 — — 123,676 65,288 Total net revenue 300,609 238,838 15,620 30,539 (11,316) (23,211) 304,913 246,166 (Provision for) reversal of credit losses (82,739) (38,019) — 495 — — (82,739) (37,524) Non-interest expense (177,714) (161,101) (19,821) (40,885) 11,316 23,211 (186,219) (178,775) Income (Loss) before income tax benefit (expense) 40,156 39,718 (4,201) (9,851) — — 35,955 29,867 Income tax benefit (expense) (9,440) (4,670) 16,683 12,607 — (10,619) 7,243 (2,682) Net income $ 30,716 $ 35,048 $ 12,482 $ 2,756 $ — $ (10,619) $ 43,198 $ 27,185 Capital expenditures $ 17,301 $ 9,451 $ — $ — $ — $ — $ 17,301 $ 9,451 Depreciation and amortization $ 4,099 $ 1,220 $ 6,582 $ 9,329 $ — $ — $ 10,681 $ 10,549 LendingClub LendingClub Intercompany Consolidated Total Nine Months Ended September 30, Eight Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Eight Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 2022 2021 2022 2021 Non-interest income: Marketplace revenue $ 509,426 $ 315,885 $ 35,313 $ 92,133 $ 15,448 $ — $ 560,187 $ 408,018 Other non-interest income 64,779 73,433 12,931 12,519 (52,971) (67,282) 24,739 18,670 Total non-interest income 574,205 389,318 48,244 104,652 (37,523) (67,282) 584,926 426,688 Interest income: Interest income 357,117 127,429 26,224 67,748 — — 383,341 195,177 Interest expense (25,134) (5,489) (18,625) (59,989) — — (43,759) (65,478) Net interest income 331,983 121,940 7,599 7,759 — — 339,582 129,699 Total net revenue 906,188 511,258 55,843 112,411 (37,523) (67,282) 924,508 556,387 (Provision for) reversal of credit losses (205,814) (96,938) — 3,287 — — (205,814) (93,651) Non-interest expense (552,809) (374,782) (71,523) (165,666) 37,523 67,282 (586,809) (473,166) Income (Loss) before income tax benefit (expense) 147,565 39,538 (15,680) (49,968) — — 131,885 (10,430) Income tax benefit (expense) (39,113) 7,866 120,274 23,821 53,048 (31,785) 134,209 (98) Net income (loss) $ 108,452 $ 47,404 $ 104,594 $ (26,147) $ 53,048 $ (31,785) $ 266,094 $ (10,528) Capital expenditures $ 54,659 $ 22,624 $ — $ 1,811 $ — $ — $ 54,659 $ 24,435 Depreciation and amortization $ 11,109 $ 2,810 $ 21,168 $ 31,013 $ — $ — $ 32,277 $ 33,823 LendingClub Bank LendingClub Corporation Intercompany Consolidated Total September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Assets Total cash and cash equivalents $ 896,519 $ 659,919 $ 109,200 $ 88,268 $ (52,878) $ (61,061) $ 952,841 $ 687,126 Restricted cash — — 78,746 76,540 (12,461) (80) 66,285 76,460 Securities available for sale at fair value 338,096 205,730 21,061 57,800 — — 359,157 263,530 Loans held for sale 90,058 335,449 — 55,799 — — 90,058 391,248 Loans and leases held for investment, net 4,503,726 2,754,737 — — — — 4,503,726 2,754,737 Retail and certificate loans held for investment at fair value — — 87,144 229,719 — — 87,144 229,719 Other loans held for investment at fair value — — 15,057 21,240 — — 15,057 21,240 Property, equipment and software, net 89,576 36,424 40,381 61,572 — — 129,957 97,996 Investment in subsidiary — — 671,574 557,577 (671,574) (557,577) — — Goodwill 75,717 75,717 — — — — 75,717 75,717 Other assets 305,456 254,075 207,556 168,042 (17,880) (119,571) 495,132 302,546 Total assets 6,299,148 4,322,051 1,230,719 1,316,557 (754,793) (738,289) 6,775,074 4,900,319 Liabilities and Equity Total deposits 5,188,845 3,196,929 — — (65,339) (61,141) 5,123,506 3,135,788 Short-term borrowings 165 165 4,638 27,615 — — 4,803 27,780 Advances from PPPLF 91,671 271,933 — — — — 91,671 271,933 Retail notes, certificates and secured borrowings at fair value — — 87,144 229,719 — — 87,144 229,719 Payable on Structured Program borrowings — — 11,185 65,451 — — 11,185 65,451 Other long-term debt — — 15,300 15,455 — — 15,300 15,455 Other liabilities 205,814 218,775 132,121 150,727 (17,880) (65,551) 320,055 303,951 Total liabilities 5,486,495 3,687,802 250,388 488,967 (83,219) (126,692) 5,653,664 4,050,077 Total equity 812,653 634,249 980,331 827,590 (671,574) (611,597) 1,121,410 850,242 Total liabilities and equity $ 6,299,148 $ 4,322,051 $ 1,230,719 $ 1,316,557 $ (754,793) $ (738,289) $ 6,775,074 $ 4,900,319 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Consolidation | All intercompany balances and transactions have been eliminated in consolidation. |
Basis of Accounting | These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and, in the opinion of management, contain all adjustments, including normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. |
Use of Estimates | 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. |
Adoption of New Accounting Standards and New Accounting Standards Not Yet Adopted | Adoption of New Accounting Standards The Company did not adopt any new accounting standards during the nine-month period ended September 30, 2022, except as noted below. In August 2020, the Financial Accounting Standards Board (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 adopted this ASU on January 1, 2022 under the full retrospective approach. As a result of the adoption, the deemed dividend recorded in the first quarter of 2020 related to the beneficial conversion feature of the convertible Series A Preferred Stock, was reclassified from Accumulated Deficit to Additional Paid-in Capital within Equity, as shown in the following table: Nine Months Ended September 30, 2020 Additional Paid-in Capital Accumulated Deficit Issuance of preferred stock in exchange for common stock, as originally reported $ 149 $ (50,204) Adoption of ASU 2020-06 (50,204) 50,204 Issuance of preferred stock in exchange for common stock, as adjusted $ (50,055) $ — In addition, since the beneficial conversion feature is no longer recorded as a deemed dividend, the allocation of net income (loss) attributable to stockholders and the related Basic and Diluted net income (loss) per share (EPS) has been adjusted, as shown in the following table: Nine Months Ended September 30, 2020 Common Stock Preferred Stock Net income (loss) attributable to stockholders, as originally reported $ (180,172) $ 19,289 Adoption of ASU 2020-06 42,851 (42,851) Net loss attributable to stockholders, as adjusted $ (137,321) $ (23,562) Basic and Diluted EPS, as originally reported $ (2.35) $ 1.46 Adoption of ASU 2020-06 0.56 (3.25) Basic and Diluted EPS, as adjusted $ (1.79) $ (1.79) The adoption of this ASU did not impact the Company’s financial position and cash flows in the first nine months of 2020, nor did it change net loss reported in the period. New Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which, if certain criteria are met, provides optional expedients and exceptions for applying GAAP 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 are elective and may be applied prospectively upon adoption to reporting periods through December 31, 2022. The FASB has issued an exposure draft that would extend the sunset of the adoption period through December 31, 2024. The Company has not made an election to adopt this ASU and does not expect its impact would be material to the financial statements if adopted in future reporting periods. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, |
Revenue Recognition | 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Adoption of ASU | As a result of the adoption, the deemed dividend recorded in the first quarter of 2020 related to the beneficial conversion feature of the convertible Series A Preferred Stock, was reclassified from Accumulated Deficit to Additional Paid-in Capital within Equity, as shown in the following table: Nine Months Ended September 30, 2020 Additional Paid-in Capital Accumulated Deficit Issuance of preferred stock in exchange for common stock, as originally reported $ 149 $ (50,204) Adoption of ASU 2020-06 (50,204) 50,204 Issuance of preferred stock in exchange for common stock, as adjusted $ (50,055) $ — In addition, since the beneficial conversion feature is no longer recorded as a deemed dividend, the allocation of net income (loss) attributable to stockholders and the related Basic and Diluted net income (loss) per share (EPS) has been adjusted, as shown in the following table: Nine Months Ended September 30, 2020 Common Stock Preferred Stock Net income (loss) attributable to stockholders, as originally reported $ (180,172) $ 19,289 Adoption of ASU 2020-06 42,851 (42,851) Net loss attributable to stockholders, as adjusted $ (137,321) $ (23,562) Basic and Diluted EPS, as originally reported $ (2.35) $ 1.46 Adoption of ASU 2020-06 0.56 (3.25) Basic and Diluted EPS, as adjusted $ (1.79) $ (1.79) |
Marketplace Revenue (Tables)
Marketplace Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Components of Marketplace Revenue | The following table presents components of marketplace revenue for the periods presented: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Origination fees $ 127,142 $ 129,125 $ 398,487 $ 298,486 Servicing fees 23,760 20,819 60,440 66,699 Gain on sales of loans 23,554 21,907 76,983 49,547 Net fair value adjustments (619) 2,705 24,277 (6,714) Total marketplace revenue $ 173,837 $ 174,556 $ 560,187 $ 408,018 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) per Share | The following tables detail the computation of the Company’s Basic and Diluted EPS of common stock and Series A Preferred Stock: Three Months Ended September 30, 2022 2021 Common Stock Common Stock Basic EPS: Net income attributable to stockholders $ 43,198 $ 27,185 Weighted-average common shares – Basic 104,215,594 99,073,507 Basic EPS $ 0.41 $ 0.27 Diluted EPS: Net income attributable to stockholders $ 43,198 $ 27,185 Weighted-average common shares – Diluted 105,853,938 106,108,662 Diluted EPS $ 0.41 $ 0.26 Nine Months Ended September 30, 2022 2021 Common Stock Common Stock Preferred Stock (1) Basic EPS: Net income (loss) attributable to stockholders $ 266,094 $ (10,434) $ (94) Weighted-average common shares – Basic 102,838,645 96,531,725 873,217 Basic EPS $ 2.59 $ (0.11) $ (0.11) Diluted EPS: Net income (loss) attributable to stockholders $ 266,094 $ (10,434) $ (94) Weighted-average common shares – Diluted 104,116,240 96,531,725 873,217 Diluted EPS $ 2.56 $ (0.11) $ (0.11) (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 during the first nine months of 2021: Restricted Stock Units (RSUs) and Performance-based RSUs (PBRSUs) 3,076,073 Preferred stock 873,217 Stock options 139,868 Total 4,089,158 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 available for sale (AFS) securities were as follows: September 30, 2022 Amortized Gross Gross Fair U.S. agency residential mortgage-backed securities $ 260,286 $ — $ (43,576) $ 216,710 U.S. agency securities 90,445 — (15,060) 75,385 Commercial mortgage-backed securities 28,007 — (4,275) 23,732 Other asset-backed securities 19,313 38 (818) 18,533 Asset-backed senior securities 9,154 — — 9,154 Asset-backed subordinated securities 2,221 5,223 — 7,444 CLUB Certificate asset-backed securities 3,018 2,830 — 5,848 Municipal securities 3,282 — (931) 2,351 Total securities available for sale (1) $ 415,726 $ 8,091 $ (64,660) $ 359,157 December 31, 2021 Amortized Gross Gross 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) $ 256,170 $ 11,104 $ (3,744) $ 263,530 (1) As of September 30, 2022 and December 31, 2021, includes $325.9 million and $236.8 million, respectively, of fair value securities pledged as collateral. |
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 September 30, 2022 Fair Unrealized Fair Unrealized Fair Unrealized U.S. agency residential mortgage-backed securities $ 142,629 $ (23,204) $ 74,081 $ (20,372) $ 216,710 $ (43,576) U.S. agency securities 61,949 (9,608) 13,436 (5,452) 75,385 (15,060) Commercial mortgage-backed securities 6,388 (1,013) 17,344 (3,262) 23,732 (4,275) Other asset-backed securities 8,973 (156) 5,388 (662) 14,361 (818) Municipal securities — — 2,351 (931) 2,351 (931) Total securities with unrealized losses $ 219,939 $ (33,981) $ 112,600 $ (30,679) $ 332,539 $ (64,660) 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 $ 190,246 $ (3,744) $ — $ — $ 190,246 $ (3,744) |
Allowance for Credit Losses for Securities Available for Sale | The following table presents the activity in the allowance for AFS securities, by major security type, during the third quarter and first nine months of 2021: Credit Valuation Allowance CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Balance at June 30, 2021 $ (40) $ (552) $ (592) Reversal of credit loss expense 40 456 496 Balance at September 30, 2021 $ — $ (96) $ (96) Credit Valuation Allowance CLUB Certificate asset-backed securities Asset-backed subordinated securities Total Balance at December 31, 2020 $ (4,190) $ (14,546) $ (18,736) Reversal of credit loss expense 236 3,052 3,288 Reversal of allowance arising from PCD financial assets 3,954 11,398 15,352 Balance at September 30, 2021 $ — $ (96) $ (96) |
Available-for-sale Securities by Contractual Maturity | The contractual maturities of AFS securities were as follows: September 30, 2022 Amortized Cost Fair Value Weighted- average Yield (1) Due after 1 year through 5 years: U.S. agency securities 9,000 8,640 Commercial mortgage-backed securities 1,042 919 Total due after 1 year through 5 years 10,042 9,559 3.33 % Due after 5 years through 10 years: U.S. agency residential mortgage-backed securities 6,604 6,093 U.S. agency securities 12,847 11,287 Commercial mortgage-backed securities 2,871 2,367 Other asset-backed securities 649 656 Municipal securities 625 516 Total due after 5 years through 10 years 23,596 20,919 2.63 % Due after 10 years: U.S. agency residential mortgage-backed securities 253,682 210,617 U.S. agency securities 68,598 55,458 Commercial mortgage-backed securities 24,094 20,446 Other asset-backed securities 18,664 17,877 Municipal securities 2,657 1,835 Total due after 10 years 367,695 306,233 2.44 % Asset-backed securities related to Structured Program transactions 14,393 22,446 56.16 % Total securities available for sale $ 415,726 $ 359,157 4.33 % (1) The weighted-average yield is computed using the amortized cost at September 30, 2022. |
Schedule of Proceeds and Realized Gain (Loss) | Proceeds and gross realized gains and losses from sales of AFS securities during the first nine months of 2021 were as follows: Proceeds $ 106,192 Gross realized gains $ 708 Gross realized losses $ (952) |
Loans and Leases Held for Inv_2
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Notes and Certificates | The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following tables present the components of each portfolio segment by class of financing receivable: September 30, 2022 December 31, 2021 Unsecured personal $ 3,642,254 $ 1,804,578 Residential mortgages 197,776 151,362 Secured consumer 180,768 65,976 Total consumer loans held for investment 4,020,798 2,021,916 Equipment finance (1) 167,447 149,155 Commercial real estate 372,406 310,399 Commercial and industrial (2) 246,276 417,656 Total commercial loans and leases held for investment 786,129 877,210 Total loans and leases held for investment 4,806,927 2,899,126 Allowance for loan and lease losses (303,201) (144,389) Loans and leases held for investment, net (3) $ 4,503,726 $ 2,754,737 (1) Comprised of sales-type leases for equipment. See “Note 16. Leases” for additional information. (2) Includes $89.4 million and $268.3 million of pledged loans under the Paycheck Protection Program (PPP) as of September 30, 2022 and December 31, 2021, respectively. (3) As of September 30, 2022 and December 31, 2021, the Company had $278.4 million and $149.2 million in loans pledged as collateral under the Federal Reserve Bank (FRB) Discount Window, respectively. September 30, 2022 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 4,020,798 $ 288,138 $ 3,732,660 7.2 % Total commercial loans and leases held for investment (2) 786,129 15,063 771,066 1.9 % Total loans and leases held for investment (2) $ 4,806,927 $ 303,201 $ 4,503,726 6.3 % 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) As of September 30, 2022, excluding the $89.4 million of PPP loans, the ALLL represented 2.2% of commercial loans and leases HFI and 6.4% of total loans and leases HFI. As of December 31, 2021, excluding $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: Three Months Ended September 30, 2022 2021 Consumer Commercial Total Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ 228,184 $ 15,076 $ 243,260 $ 54,058 $ 17,023 $ 71,081 Credit loss expense for loans and leases held for investment 81,935 664 82,599 37,695 (562) 37,133 Charge-offs (1) (22,944) (784) (23,728) (3,142) (1,194) (4,336) Recoveries 963 107 1,070 20 838 858 Allowance for loan and lease losses, end of period $ 288,138 $ 15,063 $ 303,201 $ 88,631 $ 16,105 $ 104,736 Reserve for unfunded lending commitments, beginning of period $ 136 $ 1,889 $ 2,025 $ — $ 390 $ 390 Credit loss expense for unfunded lending commitments (78) 218 140 50 837 887 Reserve for unfunded lending commitments, end of period (2) $ 58 $ 2,107 $ 2,165 $ 50 $ 1,227 $ 1,277 Nine Months Ended September 30, 2022 2021 Consumer Commercial Total Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ 128,812 $ 15,577 $ 144,389 $ — $ — $ — Credit loss expense for loans and leases held for investment (3) 203,967 913 204,880 91,194 4,468 95,662 Initial allowance for PCD loans acquired during the period (4) — — — 603 11,837 12,440 Charge-offs (1) (46,668) (2,001) (48,669) (3,232) (1,350) (4,582) Recoveries 2,027 574 2,601 66 1,150 1,216 Allowance for loan and lease losses, end of period $ 288,138 $ 15,063 $ 303,201 $ 88,631 $ 16,105 $ 104,736 Reserve for unfunded lending commitments, beginning of period $ — $ 1,231 $ 1,231 $ — $ — $ — Credit loss expense for unfunded lending commitments 58 876 934 50 1,227 1,277 Reserve for unfunded lending commitments, end of period (2) $ 58 $ 2,107 $ 2,165 $ 50 $ 1,227 $ 1,277 (1) 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. (2) Relates to $144.0 million and $115.5 million of unfunded commitments as of September 30, 2022 and 2021, respectively. (3) Includes $6.9 million of credit loss expense for Radius loans at Acquisition for the first quarter of 2021. (4) 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 the first quarter of 2021. 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 |
Financing Receivable Credit Quality Indicators | The following tables present the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status and origination year: September 30, 2022 Term Loans and Leases by Origination Year 2022 2021 2020 2019 2018 Prior Total Unsecured personal Current $ 2,458,166 $ 1,146,225 $ — $ — $ — $ — $ 3,604,391 30-59 days past due 5,758 9,041 — — — — 14,799 60-89 days past due 4,038 8,425 — — — — 12,463 90 or more days past due 2,520 8,081 — — — — 10,601 Total unsecured personal 2,470,482 1,171,772 — — — — 3,642,254 Residential mortgages Current 43,130 59,682 33,680 21,835 4,573 34,539 197,439 30-59 days past due — — — — — — — 60-89 days past due — — — — — — — 90 or more days past due — — — — 4 333 337 Total residential mortgages 43,130 59,682 33,680 21,835 4,577 34,872 197,776 Secured consumer Current 133,644 42,910 — 2,563 — — 179,117 30-59 days past due 596 389 — — — — 985 60-89 days past due 270 234 — — — — 504 90 or more days past due 67 95 — — — — 162 Total secured consumer 134,577 43,628 — 2,563 — — 180,768 Total consumer loans held for investment $ 2,648,189 $ 1,275,082 $ 33,680 $ 24,398 $ 4,577 $ 34,872 $ 4,020,798 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 tables present the classes of financing receivables within the commercial portfolio segment by risk rating and origination year: September 30, 2022 Term Loans and Leases by Origination Year 2022 2021 2020 2019 2018 Prior Total Equipment finance Pass $ 55,947 $ 42,853 $ 28,066 $ 20,145 $ 12,751 $ 3,704 $ 163,466 Special mention — 2,198 — 1,603 — — 3,801 Substandard — — — — 180 — 180 Doubtful — — — — — — — Loss — — — — — — — Total equipment finance 55,947 45,051 28,066 21,748 12,931 3,704 167,447 Commercial real estate Pass 84,608 56,575 50,985 52,967 38,941 63,589 347,665 Special mention — — 8,415 262 1,242 842 10,761 Substandard — — — 658 2,403 10,364 13,425 Doubtful — — — — — — — Loss — — — — — 555 555 Total commercial real estate 84,608 56,575 59,400 53,887 42,586 75,350 372,406 Commercial and industrial Pass 37,626 126,661 26,382 15,190 4,702 12,710 223,271 Special mention — 176 1,962 1,852 166 473 4,629 Substandard — 4,746 4,678 3,812 1,668 1,839 16,743 Doubtful — — 111 — — 287 398 Loss — — — — 6 1,229 1,235 Total commercial and industrial (1) 37,626 131,583 33,133 20,854 6,542 16,538 246,276 Total commercial loans and leases held for investment $ 178,181 $ 233,209 $ 120,599 $ 96,489 $ 62,059 $ 95,592 $ 786,129 (1) Includes $89.4 million of PPP loans. 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. |
Past Due Financing Receivables | The following tables present an analysis of the past due loans and leases HFI within the commercial portfolio segment: September 30, 2022 30-59 60-89 90 or More Days Total Equipment finance $ — $ — $ — $ — Commercial real estate — 101 452 553 Commercial and industrial (1) — — 1,650 1,650 Total commercial loans and leases held for investment $ — $ 101 $ 2,102 $ 2,203 December 31, 2021 30-59 60-89 90 or More Total 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 tables. The following table presents nonaccrual loans and leases: September 30, 2022 December 31, 2021 Nonaccrual (1) Nonaccrual with no related ACL (2) Nonaccrual (1) Nonaccrual with no related ACL (2) Unsecured personal $ 10,601 $ — $ 1,676 $ — Residential mortgages 337 337 1,373 1,373 Secured consumer 162 — 3,011 3,011 Total nonaccrual consumer loans held for investment 11,100 337 6,060 4,384 Equipment finance 180 — 603 — Commercial real estate 1,013 1,013 989 989 Commercial and industrial 12,214 1,338 2,333 1,061 Total nonaccrual commercial loans and leases held for investment 13,407 2,351 3,925 2,050 Total nonaccrual loans and leases held for investment $ 24,507 $ 2,688 $ 9,985 $ 6,434 (1) Excluding PPP loans, there were no loans and leases that were 90 days or more past due and accruing as of both September 30, 2022 and December 31, 2021. (2) Subset of total nonaccrual loans and leases. September 30, 2022 December 31, 2021 Nonaccrual Nonaccrual Ratios (1) Nonaccrual Nonaccrual Ratios (1) Total nonaccrual consumer loans held for investment $ 11,100 0.28 % $ 6,060 0.30 % Total nonaccrual commercial loans and leases held for investment 13,407 1.71 % 3,925 0.45 % Total nonaccrual loans and leases held for investment (2) $ 24,507 0.51 % $ 9,985 0.34 % (1) Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI. (2) Nonaccruing loans and leases represented 0.52% and 0.38% of total loans and leases HFI, excluding PPP loans, as of September 30, 2022 and December 31, 2021, respectively. |
Financing Receivable, Acquired Financial Assets With Credit Deterioration | Acquired PCD loans during the first nine months of 2021 were as follows: Purchase price $ 337,118 Allowance for expected credit losses (1) 30,378 Discount attributable to other factors 12,204 Par value $ 379,700 (1) For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date for the first quarter of 2021. 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 during the first quarter of 2021. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million for the first quarter of 2021. |
Securitizations and Variable _2
Securitizations and Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 the Company’s transactions with consolidated and unconsolidated VIEs. Additionally, the assets and liabilities in the tables below exclude intercompany balances that eliminate in consolidation: September 30, 2022 Consolidated VIEs Unconsolidated VIEs Total Assets Restricted cash $ 8,600 $ — $ 8,600 Securities available for sale at fair value — 22,445 22,445 Retail and certificate loans held for investment at fair value 2,940 — 2,940 Other loans held for investment at fair value 6,375 — 6,375 Other assets 218 11,351 11,569 Total assets $ 18,133 $ 33,796 $ 51,929 Liabilities Retail notes, certificates and secured borrowings at fair value $ 2,940 $ — $ 2,940 Payable on Structured Program borrowings 11,185 — 11,185 Other liabilities 39 — 39 Total liabilities 14,164 — 14,164 Total net assets $ 3,969 $ 33,796 $ 37,765 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 The following tables present total unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary: September 30, 2022 Total VIE Assets Securities Available for Sale Other Assets Net Assets Carrying value $ 625,017 $ 22,445 $ 11,351 $ 33,796 Total exposure N/A $ 22,445 $ 11,351 $ 33,796 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 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 financial statements: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Principal derecognized from loans securitized or sold $ — $ — $ 41,023 $ — Net gains recognized from loans securitized or sold $ — $ — $ 259 $ — Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement $ — $ — $ 2,180 $ — Cash proceeds from servicing and other administrative fees on loans securitized or sold $ 1,782 $ 5,152 $ 7,294 $ 19,600 Proceeds from sale of securities by consolidated VIE $ — $ — $ 5,320 $ — Cash proceeds for interest received on senior securities and subordinated securities $ 1,294 $ 975 $ 6,373 $ 6,586 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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: September 30, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 90,058 $ 90,058 Retail and certificate loans held for investment at fair value — — 87,144 87,144 Other loans held for investment at fair value — — 15,057 15,057 Securities available for sale: U.S. agency residential mortgage-backed securities — 216,710 — 216,710 U.S. agency securities — 75,385 — 75,385 Commercial mortgage-backed securities — 23,732 — 23,732 Asset-backed senior securities and subordinated securities — 9,154 7,444 16,598 Other asset-backed securities — 18,533 — 18,533 CLUB Certificate asset-backed securities — — 5,848 5,848 Municipal securities — 2,351 — 2,351 Total securities available for sale — 345,865 13,292 359,157 Servicing assets — — 86,518 86,518 Other assets — — 5,437 5,437 Total assets $ — $ 345,865 $ 297,506 $ 643,371 Liabilities: Retail notes, certificates and secured borrowings $ — $ — $ 87,144 $ 87,144 Payable on Structured Program borrowings — — 11,185 11,185 Other liabilities — — 11,042 11,042 Total liabilities $ — $ — $ 109,371 $ 109,371 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 mortgaged-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 |
Fair Value of Assets Measured on a Recurring Basis | The following tables present additional information about Level 3 loans HFS on a recurring basis: Outstanding Principal Balance Valuation Adjustment Fair Value Balance at June 30, 2022 $ 62,761 $ 50 $ 62,811 Originations and purchases 2,298,086 — 2,298,086 Sales (2,264,859) (188) (2,265,047) Principal payments and retirements (4,592) — (4,592) Charge-offs, net of recoveries (17) 17 — Change in fair value recorded in earnings — (1,200) (1,200) Balance at September 30, 2022 $ 91,379 $ (1,321) $ 90,058 Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2021 $ 147,193 $ (4,823) $ 142,370 Originations and purchases 7,297,510 — 7,297,510 Transfers to loans held for investment (11,888) — (11,888) Sales (7,315,612) (18,979) (7,334,591) Principal payments and retirements (24,990) — (24,990) Charge-offs, net of recoveries (834) (628) (1,462) Change in fair value recorded in earnings — 23,109 23,109 Balance at September 30, 2022 $ 91,379 $ (1,321) $ 90,058 Outstanding Principal Balance Valuation Adjustment Fair Value Balance at June 30, 2021 $ 186,988 $ (6,927) $ 180,061 Originations and purchases 2,339,869 — 2,339,869 Sales (2,342,158) (85) (2,342,243) Principal payments and retirements (27,211) — (27,211) Charge-offs, net of recoveries (1,138) (209) (1,347) Change in fair value recorded in earnings — 3,031 3,031 Balance at September 30, 2021 $ 156,350 $ (4,190) $ 152,160 Outstanding Principal Balance Valuation Adjustment Fair Value Balance at December 31, 2020 $ 132,600 $ (10,698) $ 121,902 Originations and purchases 5,320,264 (1,629) 5,318,635 Sales (5,210,803) 10,568 (5,200,235) Principal payments and retirements (78,946) — (78,946) Charge-offs, net of recoveries (6,765) 3,711 (3,054) Change in fair value recorded in earnings — (6,142) (6,142) Balance at September 30, 2021 $ 156,350 $ (4,190) $ 152,160 The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Fair value at beginning of period $ 79,427 $ 58,728 $ 67,726 $ 56,347 Issuances (1) 22,319 21,071 73,774 46,274 Change in fair value, included in Marketplace revenue (14,689) (14,984) (52,702) (39,584) Other net changes included in Deferred revenue (539) (1,242) (2,280) 536 Fair value at end of period $ 86,518 $ 63,573 $ 86,518 $ 63,573 (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: September 30, 2022 December 31, 2021 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 7.5 % 16.4 % 10.0 % 7.5 % 16.4 % 10.0 % Net cumulative expected loss rates (1) 1.0 % 29.8 % 12.7 % 2.4 % 26.4 % 10.2 % Cumulative expected prepayment rates (1) 30.6 % 47.0 % 39.1 % 32.1 % 45.9 % 38.4 % 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: September 30, 2022 December 31, 2021 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Servicing rate increase by 0.10% $ (11,563) $ (9,495) Servicing rate decrease by 0.10% $ 11,563 $ 9,495 |
Fair Value Sensitivity of Servicing Assets | The following table presents the fair value sensitivity of servicing assets to adverse changes in key assumptions: September 30, 2022 December 31, 2021 Fair value of Servicing Assets $ 86,518 $ 67,726 Discount rates 100 basis point increase $ (745) $ (558) 200 basis point increase $ (1,489) $ (1,115) Expected loss rates 10% adverse change $ (837) $ (693) 20% adverse change $ (1,673) $ (1,386) Expected prepayment rates 10% adverse change $ (2,178) $ (2,401) 20% adverse change $ (4,356) $ (4,802) |
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: September 30, 2022 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans and leases held for investment, net $ 4,503,726 $ — $ — $ 4,786,152 $ 4,786,152 Other assets 28,638 — 27,018 1,649 28,667 Total assets $ 4,532,364 $ — $ 27,018 $ 4,787,801 $ 4,814,819 Liabilities: Deposits (1) $ 242,126 $ — $ — $ 242,126 $ 242,126 Short-term borrowings 4,803 — 4,803 — 4,803 Advances from PPPLF 91,671 — — 91,671 91,671 Other long-term debt 15,300 — — 15,300 15,300 Other liabilities 63,758 — 28,310 35,448 63,758 Total liabilities $ 417,658 $ — $ 33,113 $ 384,545 $ 417,658 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. |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, Net | Property, equipment and software, net, consist of the following: September 30, 2022 December 31, 2021 Software (1) $ 168,545 $ 121,102 Leasehold improvements 31,213 37,347 Computer equipment 27,660 29,598 Furniture and fixtures 6,064 8,346 Total property, equipment and software 233,482 196,393 Accumulated depreciation and amortization (103,525) (98,397) Total property, equipment and software, net $ 129,957 $ 97,996 (1) Includes $44.9 million and $14.7 million of development in progress for internally-developed software and $10.1 million and $2.5 million of development in progress to customize purchased software as of September 30, 2022 and December 31, 2021, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The gross and net carrying values and accumulated amortization were as follows: September 30, 2022 December 31, 2021 Gross carrying value $ 54,500 $ 54,500 Accumulated amortization (36,988) (33,319) Net carrying value $ 17,512 $ 21,181 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The expected future amortization expense for intangible assets as of September 30, 2022, is as follows: 2022 $ 1,178 2023 4,198 2024 3,549 2025 2,901 2026 2,252 Thereafter 3,434 Total $ 17,512 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other assets consist of the following: September 30, 2022 December 31, 2021 Deferred tax asset, net (1) $ 171,206 $ — Servicing assets (2) 88,138 70,370 Operating lease assets 69,936 77,316 Nonmarketable equity investments 39,569 31,726 Intangible assets, net (3) 17,512 21,181 Other 108,771 101,953 Total other assets $ 495,132 $ 302,546 (1) See “ Note 15. Income Taxes ” for additional detail. (2) Loans underlying servicing assets had a total outstanding principal balance of $12.0 billion and $10.3 billion as of September 30, 2022 and December 31, 2021, respectively. (3) See “ Note 9. Goodwill and Intangible Assets ” for additional detail. |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Deposits | Deposits consist of the following: September 30, 2022 December 31, 2021 Interest-bearing deposits: Savings and money market accounts $ 2,486,469 $ 856,989 Checking accounts 2,139,537 1,993,809 Certificates of deposit (1) 242,126 68,405 Total $ 4,868,132 $ 2,919,203 Noninterest-bearing deposits 255,374 216,585 Total deposits $ 5,123,506 $ 3,135,788 (1) Includes $9.7 million and $14.0 million in denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand as of September 30, 2022 and December 31, 2021, respectively. Total certificates of deposit at September 30, 2022 are scheduled to mature as follows: 2022 $ 10,496 2023 137,586 2024 75,236 2025 9,336 2026 945 Thereafter 8,527 Total certificates of deposit $ 242,126 |
Short-term Borrowings and Lon_2
Short-term Borrowings and Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 presented: September 30, 2022 December 31, 2021 Retail notes $ 84,203 $ 219,435 Certificates and secured borrowings 2,941 10,284 Total retail notes, certificates and secured borrowings $ 87,144 $ 229,719 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Other Liabilities | Other liabilities consist of the following: September 30, 2022 December 31, 2021 Accounts payable and accrued expenses $ 92,796 $ 100,972 Operating lease liabilities 83,561 91,588 Payable to investors 28,310 22,187 Other 115,388 89,204 Total other liabilities $ 320,055 $ 303,951 |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Postemployment Benefits [Abstract] | |
Total Stock-based Compensation Expense | Stock-based compensation expense, included in “Compensation and benefits” expense on the Income Statement, was as follows for the periods presented: Three Months Ended Nine Months Ended 2022 2021 2022 2021 RSUs and PBRSUs $ 16,737 $ 16,691 $ 50,164 $ 49,130 Stock options 6 118 46 582 Total stock-based compensation expense $ 16,743 $ 16,809 $ 50,210 $ 49,712 |
Schedule of RSU Activity | The following table summarizes the activities for the Company’s RSUs: Number Weighted- Unvested at December 31, 2021 9,703,751 $ 12.44 Granted 5,216,789 $ 14.26 Vested (3,773,222) $ 12.59 Forfeited/expired (1,351,990) $ 14.09 Unvested at September 30, 2022 9,795,328 $ 13.09 |
Schedule of PBRSU Activity | The following table summarizes the activities for the Company’s PBRSUs: Number Weighted- Unvested at December 31, 2021 1,771,869 $ 9.72 Granted 743,074 $ 8.83 Vested (506,696) $ 5.48 Unvested at September 30, 2022 2,008,247 $ 10.47 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets | The following table summarizes the Company’s net deferred tax assets: September 30, 2022 December 31, 2021 Deferred tax assets (liabilities), net $ 229,269 $ 223,367 Valuation allowance (58,063) (223,367) Deferred tax assets, net of valuation allowance $ 171,206 $ — |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Components of Equipment Finance Assets | The components of Equipment Finance assets are as follows: September 30, 2022 December 31, 2021 Lease receivables $ 144,433 $ 122,927 Unguaranteed residual asset values 40,375 36,837 Unearned income (18,253) (10,989) Deferred fees 892 380 Total $ 167,447 $ 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 September 30, 2022 were as follows: 2022 $ 12,639 2023 47,231 2024 39,093 2025 26,387 2026 15,988 Thereafter 12,412 Total lease payments $ 153,750 Discount effect (9,317) Present value of future minimum lease payments $ 144,433 |
Supplemental Balance Sheet Information | Balance sheet information related to leases was as follows: ROU Assets and Lease Liabilities Balance Sheet Classification September 30, 2022 December 31, 2021 Operating lease assets Other assets $ 69,936 $ 77,316 Operating lease liabilities (1) Other liabilities $ 83,561 $ 91,588 (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: Three Months Ended Nine Months Ended Net Lease Costs Income Statement Classification 2022 2021 2022 2021 Operating lease costs (1) Occupancy $ (3,195) $ (4,561) $ (12,041) $ (14,315) Sublease revenue Other non-interest income — 1,538 2,847 4,612 Net lease costs $ (3,195) $ (3,023) $ (9,194) $ (9,703) |
Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s operating leases was as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Non-cash operating activity: Leased assets obtained in exchange for new and amended operating lease liabilities (1) $ — $ — $ — $ 12,914 (1) Represents non-cash activity and, accordingly, is not reflected in the Condensed Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease ROU asset. |
Future Minimum Undiscounted Lease Payments | The Company’s future minimum undiscounted lease payments under operating leases as of September 30, 2022 were as follows: Operating Lease 2022 $ 3,143 2023 12,798 2024 13,054 2025 13,184 2026 13,375 Thereafter 48,974 Total lease payments $ 104,528 Discount effect (20,967) Present value of future minimum lease payments $ 83,561 |
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 September 30, 2022 Weighted-average remaining lease term (in years) 7.93 Weighted-average discount rate 5.42 % |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 December 31, 2021 Required Minimum plus Required CCB for Non-Leverage Ratios Amount Ratio Amount Ratio CET1 capital (1) $ 760.4 15.2 % $ 523.7 16.7 % 7.0 % Tier 1 capital $ 760.4 15.2 % $ 523.7 16.7 % 8.5 % Total capital $ 825.8 16.5 % $ 563.7 18.0 % 10.5 % Tier 1 leverage $ 760.4 13.4 % $ 523.7 14.3 % 4.0 % Risk-weighted assets $ 5,018.3 N/A $ 3,130.4 N/A N/A Quarterly adjusted average assets $ 5,692.0 N/A $ 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 September 30, 2022 December 31, 2021 Required Minimum plus Required CCB for Non-Leverage Ratios Amount Ratio Amount Ratio CET1 capital (1) $ 953.2 18.3 % $ 710.0 21.3 % 7.0 % Tier 1 capital $ 953.2 18.3 % $ 710.0 21.3 % 8.5 % Total capital $ 1,033.2 19.8 % $ 767.9 23.0 % 10.5 % Tier 1 leverage $ 953.2 15.7 % $ 710.0 16.5 % 4.0 % Risk-weighted assets $ 5,210.2 N/A $ 3,333.2 N/A N/A Quarterly adjusted average assets $ 6,061.4 N/A $ 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) | 9 Months Ended |
Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Other non-interest income consists of the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Referral revenue $ 3,144 $ 4,293 $ 10,860 $ 9,649 Realized gains (losses) on sales of securities available for sale and other investments — — 36 (96) Other 4,256 2,029 13,843 9,117 Total other non-interest income $ 7,400 $ 6,322 $ 24,739 $ 18,670 Other non-interest expense consists of the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Consumer credit services $ 4,610 $ 4,266 $ 15,804 $ 11,798 Other 10,496 11,341 30,727 30,575 Total other non-interest expense $ 15,106 $ 15,607 $ 46,531 $ 42,373 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for the segments is presented in the following tables: LendingClub LendingClub Intercompany Consolidated Total Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2022 2021 2022 2021 2022 2021 2022 2021 Non-interest income: Marketplace revenue $ 153,504 $ 151,109 $ 9,015 $ 23,447 $ 11,318 $ — $ 173,837 $ 174,556 Other non-interest income 25,240 25,393 4,794 4,140 (22,634) (23,211) 7,400 6,322 Total non-interest income 178,744 176,502 13,809 27,587 (11,316) (23,211) 181,237 180,878 Interest income: Interest income 137,142 64,606 6,078 18,254 — — 143,220 82,860 Interest expense (15,277) (2,270) (4,267) (15,302) — — (19,544) (17,572) Net interest income 121,865 62,336 1,811 2,952 — — 123,676 65,288 Total net revenue 300,609 238,838 15,620 30,539 (11,316) (23,211) 304,913 246,166 (Provision for) reversal of credit losses (82,739) (38,019) — 495 — — (82,739) (37,524) Non-interest expense (177,714) (161,101) (19,821) (40,885) 11,316 23,211 (186,219) (178,775) Income (Loss) before income tax benefit (expense) 40,156 39,718 (4,201) (9,851) — — 35,955 29,867 Income tax benefit (expense) (9,440) (4,670) 16,683 12,607 — (10,619) 7,243 (2,682) Net income $ 30,716 $ 35,048 $ 12,482 $ 2,756 $ — $ (10,619) $ 43,198 $ 27,185 Capital expenditures $ 17,301 $ 9,451 $ — $ — $ — $ — $ 17,301 $ 9,451 Depreciation and amortization $ 4,099 $ 1,220 $ 6,582 $ 9,329 $ — $ — $ 10,681 $ 10,549 LendingClub LendingClub Intercompany Consolidated Total Nine Months Ended September 30, Eight Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Eight Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 2022 2021 2022 2021 Non-interest income: Marketplace revenue $ 509,426 $ 315,885 $ 35,313 $ 92,133 $ 15,448 $ — $ 560,187 $ 408,018 Other non-interest income 64,779 73,433 12,931 12,519 (52,971) (67,282) 24,739 18,670 Total non-interest income 574,205 389,318 48,244 104,652 (37,523) (67,282) 584,926 426,688 Interest income: Interest income 357,117 127,429 26,224 67,748 — — 383,341 195,177 Interest expense (25,134) (5,489) (18,625) (59,989) — — (43,759) (65,478) Net interest income 331,983 121,940 7,599 7,759 — — 339,582 129,699 Total net revenue 906,188 511,258 55,843 112,411 (37,523) (67,282) 924,508 556,387 (Provision for) reversal of credit losses (205,814) (96,938) — 3,287 — — (205,814) (93,651) Non-interest expense (552,809) (374,782) (71,523) (165,666) 37,523 67,282 (586,809) (473,166) Income (Loss) before income tax benefit (expense) 147,565 39,538 (15,680) (49,968) — — 131,885 (10,430) Income tax benefit (expense) (39,113) 7,866 120,274 23,821 53,048 (31,785) 134,209 (98) Net income (loss) $ 108,452 $ 47,404 $ 104,594 $ (26,147) $ 53,048 $ (31,785) $ 266,094 $ (10,528) Capital expenditures $ 54,659 $ 22,624 $ — $ 1,811 $ — $ — $ 54,659 $ 24,435 Depreciation and amortization $ 11,109 $ 2,810 $ 21,168 $ 31,013 $ — $ — $ 32,277 $ 33,823 LendingClub Bank LendingClub Corporation Intercompany Consolidated Total September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Assets Total cash and cash equivalents $ 896,519 $ 659,919 $ 109,200 $ 88,268 $ (52,878) $ (61,061) $ 952,841 $ 687,126 Restricted cash — — 78,746 76,540 (12,461) (80) 66,285 76,460 Securities available for sale at fair value 338,096 205,730 21,061 57,800 — — 359,157 263,530 Loans held for sale 90,058 335,449 — 55,799 — — 90,058 391,248 Loans and leases held for investment, net 4,503,726 2,754,737 — — — — 4,503,726 2,754,737 Retail and certificate loans held for investment at fair value — — 87,144 229,719 — — 87,144 229,719 Other loans held for investment at fair value — — 15,057 21,240 — — 15,057 21,240 Property, equipment and software, net 89,576 36,424 40,381 61,572 — — 129,957 97,996 Investment in subsidiary — — 671,574 557,577 (671,574) (557,577) — — Goodwill 75,717 75,717 — — — — 75,717 75,717 Other assets 305,456 254,075 207,556 168,042 (17,880) (119,571) 495,132 302,546 Total assets 6,299,148 4,322,051 1,230,719 1,316,557 (754,793) (738,289) 6,775,074 4,900,319 Liabilities and Equity Total deposits 5,188,845 3,196,929 — — (65,339) (61,141) 5,123,506 3,135,788 Short-term borrowings 165 165 4,638 27,615 — — 4,803 27,780 Advances from PPPLF 91,671 271,933 — — — — 91,671 271,933 Retail notes, certificates and secured borrowings at fair value — — 87,144 229,719 — — 87,144 229,719 Payable on Structured Program borrowings — — 11,185 65,451 — — 11,185 65,451 Other long-term debt — — 15,300 15,455 — — 15,300 15,455 Other liabilities 205,814 218,775 132,121 150,727 (17,880) (65,551) 320,055 303,951 Total liabilities 5,486,495 3,687,802 250,388 488,967 (83,219) (126,692) 5,653,664 4,050,077 Total equity 812,653 634,249 980,331 827,590 (671,574) (611,597) 1,121,410 850,242 Total liabilities and equity $ 6,299,148 $ 4,322,051 $ 1,230,719 $ 1,316,557 $ (754,793) $ (738,289) $ 6,775,074 $ 4,900,319 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Issuance of preferred stock in exchange for common stock | $ 0 | $ (50,204) | |||||||
Additional Paid-in Capital | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Issuance of preferred stock in exchange for common stock | (43) | (50,055) | |||||||
Additional Paid-in Capital | Originally reported | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Issuance of preferred stock in exchange for common stock | 149 | ||||||||
Additional Paid-in Capital | Adoption of ASU 2020-06 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Issuance of preferred stock in exchange for common stock | (50,204) | ||||||||
Accumulated Deficit | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Issuance of preferred stock in exchange for common stock | 0 | ||||||||
Accumulated Deficit | Originally reported | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Issuance of preferred stock in exchange for common stock | (50,204) | ||||||||
Accumulated Deficit | Adoption of ASU 2020-06 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Issuance of preferred stock in exchange for common stock | 50,204 | ||||||||
Common Stock | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Issuance of preferred stock in exchange for common stock | 43 | (150) | |||||||
Net income (loss) attributable to stockholders, basic | $ 43,198 | $ 27,185 | $ 266,094 | (10,434) | (137,321) | ||||
Net income (loss) attributable to stockholders, diluted | $ 43,198 | $ 27,185 | $ 266,094 | $ (10,434) | $ (137,321) | ||||
Basic EPS ($ per share) | $ 0.41 | [1] | $ 0.27 | [1] | $ 2.59 | [1] | $ (0.11) | [1] | $ (1.79) |
Diluted EPS ($ per share) | 0.41 | [1] | 0.26 | [1] | 2.56 | [1] | $ (0.11) | [1] | $ (1.79) |
Common Stock | Originally reported | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Net income (loss) attributable to stockholders, basic | $ (180,172) | ||||||||
Net income (loss) attributable to stockholders, diluted | $ (180,172) | ||||||||
Basic EPS ($ per share) | $ (2.35) | ||||||||
Diluted EPS ($ per share) | $ (2.35) | ||||||||
Common Stock | Adoption of ASU 2020-06 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Net income (loss) attributable to stockholders, basic | $ 42,851 | ||||||||
Net income (loss) attributable to stockholders, diluted | $ 42,851 | ||||||||
Basic EPS ($ per share) | $ 0.56 | ||||||||
Diluted EPS ($ per share) | $ 0.56 | ||||||||
Preferred stock | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Issuance of preferred stock in exchange for common stock | $ 1 | ||||||||
Net income (loss) attributable to stockholders, basic | $ (94) | (23,562) | |||||||
Net income (loss) attributable to stockholders, diluted | $ (94) | $ (23,562) | |||||||
Basic EPS ($ per share) | 0 | [1] | 0 | [1] | 0 | [1] | $ (0.11) | [1] | $ (1.79) |
Diluted EPS ($ per share) | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ (0.11) | [1] | $ (1.79) |
Preferred stock | Originally reported | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Net income (loss) attributable to stockholders, basic | $ 19,289 | ||||||||
Net income (loss) attributable to stockholders, diluted | $ 19,289 | ||||||||
Basic EPS ($ per share) | $ 1.46 | ||||||||
Diluted EPS ($ per share) | $ 1.46 | ||||||||
Preferred stock | Adoption of ASU 2020-06 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Net income (loss) attributable to stockholders, basic | $ (42,851) | ||||||||
Net income (loss) attributable to stockholders, diluted | $ (42,851) | ||||||||
Basic EPS ($ per share) | $ (3.25) | ||||||||
Diluted EPS ($ per share) | $ (3.25) | ||||||||
[1]See “ Notes to Condensed Consolidated Financial Statements – Note 3. Net Income (Loss) Per Share ” for additional information. |
Marketplace Revenue - Component
Marketplace Revenue - Components of Marketplace Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Gain on sales of loans | $ 23,554 | $ 21,907 | $ 76,983 | $ 49,547 |
Net fair value adjustments | (619) | 2,705 | 24,277 | (6,714) |
Total marketplace revenue | 173,837 | 174,556 | 560,187 | 408,018 |
Origination fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 127,142 | 129,125 | 398,487 | 298,486 |
Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 23,760 | $ 20,819 | $ 60,440 | $ 66,699 |
Net Income (Loss) Per Share - B
Net Income (Loss) Per Share - Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||||||
Common Stock | ||||||||||
Basic EPS: | ||||||||||
Net income attributable to stockholders | $ 43,198 | $ 27,185 | $ 266,094 | $ (10,434) | $ (137,321) | |||||
Weighted-average common shares – Basic (shares) | [1] | 104,215,594 | 99,073,507 | 102,838,645 | 96,531,725 | |||||
Basic EPS ($ per share) | $ 0.41 | [1] | $ 0.27 | [1] | $ 2.59 | [1] | $ (0.11) | [1] | $ (1.79) | |
Diluted EPS: | ||||||||||
Net income attributable to stockholders | $ 43,198 | $ 27,185 | $ 266,094 | $ (10,434) | $ (137,321) | |||||
Weighted-average common shares – Diluted (shares) | [1] | 105,853,938 | 106,108,662 | 104,116,240 | 96,531,725 | |||||
Diluted EPS ($ per share) | $ 0.41 | [1] | $ 0.26 | [1] | $ 2.56 | [1] | $ (0.11) | [1] | $ (1.79) | |
Preferred stock | ||||||||||
Basic EPS: | ||||||||||
Net income attributable to stockholders | $ (94) | $ (23,562) | ||||||||
Weighted-average common shares – Basic (shares) | [1] | 0 | 0 | 0 | 873,217 | |||||
Basic EPS ($ per share) | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ (0.11) | [1] | $ (1.79) | |
Diluted EPS: | ||||||||||
Net income attributable to stockholders | $ (94) | $ (23,562) | ||||||||
Weighted-average common shares – Diluted (shares) | [1] | 0 | 0 | 0 | 873,217 | |||||
Diluted EPS ($ per share) | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ (0.11) | [1] | $ (1.79) | |
[1]See “ Notes to Condensed Consolidated Financial Statements – Note 3. Net Income (Loss) Per Share ” for additional information. |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Shares Excluded from Calculation of Earnings (Loss) per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares excluded (shares) | 0 | 0 | 0 | 4,089,158 |
Restricted Stock Units (RSUs) and Performance-based RSUs (PBRSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares excluded (shares) | 3,076,073 | |||
Preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares excluded (shares) | 873,217 | |||
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares excluded (shares) | 139,868 |
Securities Available for Sale -
Securities Available for Sale - Amortized cost/fair value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 415,726 | $ 256,170 |
Gross Unrealized Gains | 8,091 | 11,104 |
Gross Unrealized Losses | (64,660) | (3,744) |
Fair Value | 359,157 | 263,530 |
Assets pledged as collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 325,900 | 236,800 |
U.S. agency residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 260,286 | 125,985 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (43,576) | (2,286) |
Fair Value | 216,710 | 123,699 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 90,445 | 26,902 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (15,060) | (731) |
Fair Value | 75,385 | 26,172 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,007 | 26,649 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (4,275) | (552) |
Fair Value | 23,732 | 26,098 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,313 | 26,112 |
Gross Unrealized Gains | 38 | 151 |
Gross Unrealized Losses | (818) | (130) |
Fair Value | 18,533 | 26,133 |
Asset-backed senior securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,154 | 28,057 |
Gross Unrealized Gains | 0 | 72 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 9,154 | 28,129 |
Asset-backed subordinated securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,221 | 4,119 |
Gross Unrealized Gains | 5,223 | 7,643 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 7,444 | 11,762 |
CLUB Certificate asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,018 | 15,049 |
Gross Unrealized Gains | 2,830 | 3,236 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 5,848 | 18,285 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,282 | 3,297 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (931) | (45) |
Fair Value | $ 2,351 | $ 3,252 |
Securities Available for Sale_2
Securities Available for Sale - Continuous loss (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 219,939 | $ 190,246 |
Unrealized Losses, Less than 12 months | (33,981) | (3,744) |
Fair Value, 12 months or longer | 112,600 | 0 |
Unrealized Losses, 12 months or longer | (30,679) | 0 |
Fair Value | 332,539 | 190,246 |
Unrealized Losses | (64,660) | (3,744) |
U.S. agency residential mortgage-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 142,629 | 123,668 |
Unrealized Losses, Less than 12 months | (23,204) | (2,286) |
Fair Value, 12 months or longer | 74,081 | 0 |
Unrealized Losses, 12 months or longer | (20,372) | 0 |
Fair Value | 216,710 | 123,668 |
Unrealized Losses | (43,576) | (2,286) |
U.S. agency securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 61,949 | 24,175 |
Unrealized Losses, Less than 12 months | (9,608) | (731) |
Fair Value, 12 months or longer | 13,436 | 0 |
Unrealized Losses, 12 months or longer | (5,452) | 0 |
Fair Value | 75,385 | 24,175 |
Unrealized Losses | (15,060) | (731) |
Commercial mortgage-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 6,388 | 25,927 |
Unrealized Losses, Less than 12 months | (1,013) | (552) |
Fair Value, 12 months or longer | 17,344 | 0 |
Unrealized Losses, 12 months or longer | (3,262) | 0 |
Fair Value | 23,732 | 25,927 |
Unrealized Losses | (4,275) | (552) |
Other asset-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 8,973 | 13,224 |
Unrealized Losses, Less than 12 months | (156) | (130) |
Fair Value, 12 months or longer | 5,388 | 0 |
Unrealized Losses, 12 months or longer | (662) | 0 |
Fair Value | 14,361 | 13,224 |
Unrealized Losses | (818) | (130) |
Municipal securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 0 | 3,252 |
Unrealized Losses, Less than 12 months | 0 | (45) |
Fair Value, 12 months or longer | 2,351 | 0 |
Unrealized Losses, 12 months or longer | (931) | 0 |
Fair Value | 2,351 | 3,252 |
Unrealized Losses | $ (931) | $ (45) |
Securities Available for Sale_3
Securities Available for Sale - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning | $ (592) | $ (18,736) |
Reversal of credit loss expense | 496 | 3,288 |
Reversal of allowance arising from PCD financial assets | 15,352 | |
Allowance for credit losses, ending | (96) | (96) |
CLUB Certificate asset-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning | (40) | (4,190) |
Reversal of credit loss expense | 40 | 236 |
Reversal of allowance arising from PCD financial assets | 3,954 | |
Allowance for credit losses, ending | 0 | 0 |
Asset-backed subordinated securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning | (552) | (14,546) |
Reversal of credit loss expense | 456 | 3,052 |
Reversal of allowance arising from PCD financial assets | 11,398 | |
Allowance for credit losses, ending | $ (96) | $ (96) |
Securities Available for Sale_4
Securities Available for Sale - Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | $ 10,042 | |
Amortized Cost, due after 5 years through 10 years | 23,596 | |
Amortized Cost, due after 10 years | 367,695 | |
Asset-backed securities related to Structured Program transactions | 14,393 | |
Amortized Cost | 415,726 | $ 256,170 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 9,559 | |
Fair Value, due after 5 years through 10 years | 20,919 | |
Fair Value, due after 10 years | 306,233 | |
Asset-backed securities related to Structured Program transactions | 22,446 | |
Fair Value | $ 359,157 | 263,530 |
Weighted-average Yield, due after1 year through 5 years | 3.33% | |
Weighted-average Yield, due after 5 years through 10 years | 2.63% | |
Weighted- average Yield, due after 10 years | 2.44% | |
Weighted- average Yield | 4.33% | |
U.S. agency residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost, due after 5 years through 10 years | $ 6,604 | |
Amortized Cost, due after 10 years | 253,682 | |
Fair Value | ||
Fair Value, due after 5 years through 10 years | 6,093 | |
Fair Value, due after 10 years | 210,617 | |
Fair Value | 216,710 | 123,699 |
U.S. agency securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 9,000 | |
Amortized Cost, due after 5 years through 10 years | 12,847 | |
Amortized Cost, due after 10 years | 68,598 | |
Amortized Cost | 90,445 | 26,902 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 8,640 | |
Fair Value, due after 5 years through 10 years | 11,287 | |
Fair Value, due after 10 years | 55,458 | |
Fair Value | 75,385 | 26,172 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 1,042 | |
Amortized Cost, due after 5 years through 10 years | 2,871 | |
Amortized Cost, due after 10 years | 24,094 | |
Amortized Cost | 28,007 | 26,649 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 919 | |
Fair Value, due after 5 years through 10 years | 2,367 | |
Fair Value, due after 10 years | 20,446 | |
Fair Value | 23,732 | 26,098 |
Other asset-backed securities | ||
Amortized Cost | ||
Amortized Cost, due after 5 years through 10 years | 649 | |
Amortized Cost, due after 10 years | 18,664 | |
Amortized Cost | 19,313 | 26,112 |
Fair Value | ||
Fair Value, due after 5 years through 10 years | 656 | |
Fair Value, due after 10 years | 17,877 | |
Fair Value | 18,533 | 26,133 |
Municipal securities | ||
Amortized Cost | ||
Amortized Cost, due after 5 years through 10 years | 625 | |
Amortized Cost, due after 10 years | 2,657 | |
Amortized Cost | 3,282 | 3,297 |
Fair Value | ||
Fair Value, due after 5 years through 10 years | 516 | |
Fair Value, due after 10 years | 1,835 | |
Fair Value | $ 2,351 | $ 3,252 |
Asset-backed securities related to Structured Program transactions | ||
Fair Value | ||
Weighted- average Yield | 56.16% |
Securities Available for Sale_5
Securities Available for Sale - Proceeds and Gross Realized Gains and Losses from Sales of Other Securities Available for Sale (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 0 | $ 106,192 |
Gross realized gains | 708 | |
Gross realized losses | $ (952) |
Loans and Leases Held for Inv_3
Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses - Narrative (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest | $ 27 | $ 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 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | $ 4,806,927 | $ 2,899,126 | ||||
Allowance for loan and lease losses | (303,201) | $ (243,260) | (144,389) | $ (104,736) | $ (71,081) | $ 0 |
Loans and leases held for investment, net | 4,503,726 | 2,754,737 | ||||
Loans pledged as collateral under the FRB discount window | $ 278,400 | $ 149,200 | ||||
Allowance Ratios | 6.30% | 5% | ||||
Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans, percent | 6.40% | 5.50% | ||||
Consumer Portfolio Segment | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | $ 4,020,798 | $ 2,021,916 | ||||
Allowance for loan and lease losses | (288,138) | (228,184) | (128,812) | (88,631) | (54,058) | 0 |
Loans and leases held for investment, net | $ 3,732,660 | $ 1,893,104 | ||||
Allowance Ratios | 7.20% | 6.40% | ||||
Consumer Portfolio Segment | Unsecured personal | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | $ 3,642,254 | $ 1,804,578 | ||||
Consumer Portfolio Segment | Residential mortgages | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 197,776 | 151,362 | ||||
Consumer Portfolio Segment | Secured consumer | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 180,768 | 65,976 | ||||
Commercial Portfolio Segment | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 786,129 | 877,210 | ||||
Allowance for loan and lease losses | (15,063) | $ (15,076) | (15,577) | $ (16,105) | $ (17,023) | $ 0 |
Loans and leases held for investment, net | $ 771,066 | $ 861,633 | ||||
Allowance Ratios | 1.90% | 1.80% | ||||
Allowance for loan and lease losses to commercial loans and leases held for investment, excluding PPP loans, percent | 2.20% | 2.60% | ||||
Commercial Portfolio Segment | Equipment finance | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | $ 167,447 | $ 149,155 | ||||
Commercial Portfolio Segment | Commercial real estate | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 372,406 | 310,399 | ||||
Commercial Portfolio Segment | Commercial and industrial | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 246,276 | 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 | $ 89,400 | $ 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 | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan and lease losses, beginning of period | $ 243,260 | $ 71,081 | $ 0 | $ 144,389 | $ 0 |
Credit loss expense for loans and leases held for investment | 82,599 | 37,133 | 204,880 | 95,662 | |
Initial allowance for PCD loans acquired during the period | 0 | 12,440 | |||
Charge-offs | (23,728) | (4,336) | (48,669) | (4,582) | |
Recoveries | 1,070 | 858 | 2,601 | 1,216 | |
Allowance for loan and lease losses, end of period | 303,201 | 104,736 | 303,201 | 104,736 | |
Radius Bancorp, Inc. | |||||
Off-Balance Sheet, Credit Loss, Liability [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 | 2,025 | 390 | 0 | 1,231 | 0 |
Credit loss expense for unfunded lending commitments | 140 | 887 | 934 | 1,277 | |
Reserve for unfunded lending commitments, end of period | 2,165 | 1,277 | 2,165 | 1,277 | |
Unfunded Loan Commitment, Commitments To Extend Credit | |||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Reserve for unfunded lending commitments, beginning of period | 110,800 | ||||
Reserve for unfunded lending commitments, end of period | 144,000 | 115,500 | 144,000 | 115,500 | |
Consumer Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan and lease losses, beginning of period | 228,184 | 54,058 | 0 | 128,812 | 0 |
Credit loss expense for loans and leases held for investment | 81,935 | 37,695 | 203,967 | 91,194 | |
Initial allowance for PCD loans acquired during the period | 0 | 603 | |||
Charge-offs | (22,944) | (3,142) | (46,668) | (3,232) | |
Recoveries | 963 | 20 | 2,027 | 66 | |
Allowance for loan and lease losses, end of period | 288,138 | 88,631 | 288,138 | 88,631 | |
Consumer Portfolio Segment | Unfunded Loan Commitment | |||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Reserve for unfunded lending commitments, beginning of period | 136 | 0 | 0 | 0 | 0 |
Credit loss expense for unfunded lending commitments | (78) | 50 | 58 | 50 | |
Reserve for unfunded lending commitments, end of period | 58 | 50 | 58 | 50 | |
Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loan and lease losses, beginning of period | 15,076 | 17,023 | 0 | 15,577 | 0 |
Credit loss expense for loans and leases held for investment | 664 | (562) | 913 | 4,468 | |
Initial allowance for PCD loans acquired during the period | 0 | 11,837 | |||
Charge-offs | (784) | (1,194) | (2,001) | (1,350) | |
Recoveries | 107 | 838 | 574 | 1,150 | |
Allowance for loan and lease losses, end of period | 15,063 | 16,105 | 15,063 | 16,105 | |
Commercial Portfolio Segment | Unfunded Loan Commitment | |||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Reserve for unfunded lending commitments, beginning of period | 1,889 | 390 | $ 0 | 1,231 | 0 |
Credit loss expense for unfunded lending commitments | 218 | 837 | 876 | 1,227 | |
Reserve for unfunded lending commitments, end of period | $ 2,107 | $ 1,227 | $ 2,107 | $ 1,227 |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Term Loans and Leases by Origination Year | ||
Total | $ 4,806,927 | $ 2,899,126 |
Consumer Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 2,648,189 | 1,904,265 |
Year 2 | 1,275,082 | 37,620 |
Year 3 | 33,680 | 26,798 |
Year 4 | 24,398 | 9,906 |
Year 5 | 4,577 | 3,407 |
Prior | 34,872 | 38,645 |
Within Revolving Period | 1,275 | |
Total | 4,020,798 | 2,021,916 |
Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 2,470,482 | 1,804,578 |
Year 2 | 1,171,772 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 3,642,254 | 1,804,578 |
Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 43,130 | 36,732 |
Year 2 | 59,682 | 37,620 |
Year 3 | 33,680 | 26,798 |
Year 4 | 21,835 | 7,277 |
Year 5 | 4,577 | 3,025 |
Prior | 34,872 | 38,645 |
Within Revolving Period | 1,265 | |
Total | 197,776 | 151,362 |
Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 134,577 | 62,955 |
Year 2 | 43,628 | 0 |
Year 3 | 0 | 0 |
Year 4 | 2,563 | 2,629 |
Year 5 | 0 | 382 |
Prior | 0 | 0 |
Within Revolving Period | 10 | |
Total | 180,768 | 65,976 |
Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 178,181 | 350,952 |
Year 2 | 233,209 | 208,693 |
Year 3 | 120,599 | 110,640 |
Year 4 | 96,489 | 70,150 |
Year 5 | 62,059 | 47,320 |
Prior | 95,592 | 88,769 |
Within Revolving Period | 686 | |
Total | 786,129 | 877,210 |
Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 55,947 | 53,971 |
Year 2 | 45,051 | 35,398 |
Year 3 | 28,066 | 28,728 |
Year 4 | 21,748 | 16,060 |
Year 5 | 12,931 | 6,184 |
Prior | 3,704 | 8,814 |
Within Revolving Period | 0 | |
Total | 167,447 | 149,155 |
Commercial Portfolio Segment | Equipment finance | Pass | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 55,947 | 52,440 |
Year 2 | 42,853 | 35,398 |
Year 3 | 28,066 | 26,918 |
Year 4 | 20,145 | 15,457 |
Year 5 | 12,751 | 6,184 |
Prior | 3,704 | 8,814 |
Within Revolving Period | 0 | |
Total | 163,466 | 145,211 |
Commercial Portfolio Segment | Equipment finance | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 1,531 |
Year 2 | 2,198 | 0 |
Year 3 | 0 | 1,810 |
Year 4 | 1,603 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 3,801 | 3,341 |
Commercial Portfolio Segment | Equipment finance | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 603 |
Year 5 | 180 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 180 | 603 |
Commercial Portfolio Segment | Equipment finance | Doubtful | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 0 | 0 |
Commercial Portfolio Segment | Equipment finance | Loss | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 84,608 | 55,613 |
Year 2 | 56,575 | 63,599 |
Year 3 | 59,400 | 54,737 |
Year 4 | 53,887 | 43,843 |
Year 5 | 42,586 | 23,384 |
Prior | 75,350 | 69,223 |
Within Revolving Period | 0 | |
Total | 372,406 | 310,399 |
Commercial Portfolio Segment | Commercial real estate | Pass | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 84,608 | 55,613 |
Year 2 | 56,575 | 55,202 |
Year 3 | 50,985 | 54,460 |
Year 4 | 52,967 | 39,981 |
Year 5 | 38,941 | 22,366 |
Prior | 63,589 | 57,235 |
Within Revolving Period | 0 | |
Total | 347,665 | 284,857 |
Commercial Portfolio Segment | Commercial real estate | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 8,397 |
Year 3 | 8,415 | 0 |
Year 4 | 262 | 1,366 |
Year 5 | 1,242 | 1,018 |
Prior | 842 | 7,242 |
Within Revolving Period | 0 | |
Total | 10,761 | 18,023 |
Commercial Portfolio Segment | Commercial real estate | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 277 |
Year 4 | 658 | 2,496 |
Year 5 | 2,403 | 0 |
Prior | 10,364 | 4,179 |
Within Revolving Period | 0 | |
Total | 13,425 | 6,952 |
Commercial Portfolio Segment | Commercial real estate | Doubtful | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | Loss | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 555 | 567 |
Within Revolving Period | 0 | |
Total | 555 | 567 |
Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 37,626 | 241,368 |
Year 2 | 131,583 | 109,696 |
Year 3 | 33,133 | 27,175 |
Year 4 | 20,854 | 10,247 |
Year 5 | 6,542 | 17,752 |
Prior | 16,538 | 10,732 |
Within Revolving Period | 686 | |
Total | 246,276 | 417,656 |
Commercial Portfolio Segment | Commercial and industrial | Pass | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 37,626 | 241,368 |
Year 2 | 126,661 | 108,574 |
Year 3 | 26,382 | 24,106 |
Year 4 | 15,190 | 7,874 |
Year 5 | 4,702 | 14,756 |
Prior | 12,710 | 8,058 |
Within Revolving Period | 599 | |
Total | 223,271 | 405,335 |
Commercial Portfolio Segment | Commercial and industrial | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 176 | 0 |
Year 3 | 1,962 | 2,207 |
Year 4 | 1,852 | 463 |
Year 5 | 166 | 1,467 |
Prior | 473 | 40 |
Within Revolving Period | 0 | |
Total | 4,629 | 4,177 |
Commercial Portfolio Segment | Commercial and industrial | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 4,746 | 1,122 |
Year 3 | 4,678 | 862 |
Year 4 | 3,812 | 1,858 |
Year 5 | 1,668 | 1,525 |
Prior | 1,839 | 1,571 |
Within Revolving Period | 87 | |
Total | 16,743 | 7,025 |
Commercial Portfolio Segment | Commercial and industrial | Doubtful | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 111 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 287 | 0 |
Within Revolving Period | 0 | |
Total | 398 | 0 |
Commercial Portfolio Segment | Commercial and industrial | Loss | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 52 |
Year 5 | 6 | 4 |
Prior | 1,229 | 1,063 |
Within Revolving Period | 0 | |
Total | 1,235 | 1,119 |
Commercial Portfolio Segment | Commercial and industrial loan, PPP | ||
Term Loans and Leases by Origination Year | ||
Total | 89,400 | 268,300 |
Current | Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 2,458,166 | 1,796,678 |
Year 2 | 1,146,225 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 3,604,391 | 1,796,678 |
Current | Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 43,130 | 36,732 |
Year 2 | 59,682 | 37,620 |
Year 3 | 33,680 | 26,798 |
Year 4 | 21,835 | 7,277 |
Year 5 | 4,573 | 2,682 |
Prior | 34,539 | 37,685 |
Within Revolving Period | 1,265 | |
Total | 197,439 | 150,059 |
Current | Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 133,644 | 62,731 |
Year 2 | 42,910 | 0 |
Year 3 | 0 | 0 |
Year 4 | 2,563 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 10 | |
Total | 179,117 | 62,741 |
Past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 2,203 | 2,123 |
Past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 553 | 713 |
Past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 1,650 | 1,410 |
30-59 days past due | Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 5,758 | 3,624 |
Year 2 | 9,041 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 14,799 | 3,624 |
30-59 days past due | Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 142 |
Within Revolving Period | 0 | |
Total | 0 | 142 |
30-59 days past due | Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 596 | 171 |
Year 2 | 389 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 985 | 171 |
30-59 days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 104 |
30-59 days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
30-59 days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 104 |
30-59 days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
60-89 days past due | Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 4,038 | 2,600 |
Year 2 | 8,425 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 12,463 | 2,600 |
60-89 days past due | Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 92 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 0 | 92 |
60-89 days past due | Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 270 | 53 |
Year 2 | 234 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 504 | 53 |
60-89 days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 101 | 0 |
60-89 days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
60-89 days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 101 | 0 |
60-89 days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
90 or more days past due | Consumer Portfolio Segment | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 2,520 | 1,676 |
Year 2 | 8,081 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 10,601 | 1,676 |
90 or more days past due | Consumer Portfolio Segment | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 4 | 251 |
Prior | 333 | 818 |
Within Revolving Period | 0 | |
Total | 337 | 1,069 |
90 or more days past due | Consumer Portfolio Segment | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 67 | 0 |
Year 2 | 95 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 2,629 |
Year 5 | 0 | 382 |
Prior | 0 | 0 |
Within Revolving Period | 0 | |
Total | 162 | 3,011 |
90 or more days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 2,102 | 2,019 |
90 or more days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
90 or more days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 452 | 609 |
90 or more days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | $ 1,650 | $ 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) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 24,507 | $ 9,985 |
Nonaccrual with no related ACL | $ 2,688 | $ 6,434 |
Nonaccrual Ratios | 0.51% | 0.34% |
Nonaccuring Loans And Leases, Excluding PPP Loans | Loans And Leases, Class | Credit Concentration Risk | ||
Financing Receivable, Past Due [Line Items] | ||
Concentration risk, percentage | 0.52% | 0.38% |
Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 11,100 | $ 6,060 |
Nonaccrual with no related ACL | $ 337 | $ 4,384 |
Nonaccrual Ratios | 0.28% | 0.30% |
Consumer Portfolio Segment | Unsecured personal | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 10,601 | $ 1,676 |
Nonaccrual with no related ACL | 0 | 0 |
Consumer Portfolio Segment | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 337 | 1,373 |
Nonaccrual with no related ACL | 337 | 1,373 |
Consumer Portfolio Segment | Secured consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 162 | 3,011 |
Nonaccrual with no related ACL | 0 | 3,011 |
Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 13,407 | 3,925 |
Nonaccrual with no related ACL | $ 2,351 | $ 2,050 |
Nonaccrual Ratios | 1.71% | 0.45% |
Commercial Portfolio Segment | Equipment finance | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 180 | $ 603 |
Nonaccrual with no related ACL | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 1,013 | 989 |
Nonaccrual with no related ACL | 1,013 | 989 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 12,214 | 2,333 |
Nonaccrual with no related ACL | $ 1,338 | $ 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 | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Purchase price | $ 337,118 | |
Allowance for expected credit losses | $ 30,400 | 30,378 |
Discount attributable to other factors | 12,204 | |
Par value | $ 379,700 | |
Initial allowance for PCD loans acquired during the period | 12,400 | |
PCD Loans Acquired | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Charge-offs, gross | $ 18,000 |
Securitizations and Variable _3
Securitizations and Variable Interest Entities - Summary of Select Information Related to VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Restricted cash | [1] | $ 66,285 | $ 76,460 |
Securities available for sale at fair value | 359,157 | 263,530 | |
Retail and certificate loans held for investment at fair value | [1] | 87,144 | 229,719 |
Other loans held for investment at fair value | 4,503,726 | 2,754,737 | |
Other assets | [1] | 495,132 | 302,546 |
Loans held for sale at fair value | 90,058 | 142,370 | |
Total assets | 6,775,074 | 4,900,319 | |
Liabilities | |||
Retail notes, certificates and secured borrowings at fair value | [1] | 87,144 | 229,719 |
Payable on Structured Program borrowings | [1] | 11,185 | 65,451 |
Other liabilities | [1] | 320,055 | 303,951 |
Total liabilities | 5,653,664 | 4,050,077 | |
Consolidated VIEs | |||
Assets | |||
Restricted cash | 8,600 | 13,462 | |
Securities available for sale at fair value | 0 | 0 | |
Retail and certificate loans held for investment at fair value | 2,940 | 10,281 | |
Other loans held for investment at fair value | 6,375 | 20,929 | |
Other assets | 218 | 584 | |
Loans held for sale at fair value | 0 | 41,734 | |
Total assets | 18,133 | 86,990 | |
Liabilities | |||
Retail notes, certificates and secured borrowings at fair value | 2,940 | 10,281 | |
Payable on Structured Program borrowings | 11,185 | 65,451 | |
Other liabilities | 39 | 467 | |
Total liabilities | 14,164 | 76,199 | |
Total net assets | 3,969 | 10,791 | |
Unconsolidated VIEs | |||
Assets | |||
Restricted cash | 0 | 0 | |
Securities available for sale at fair value | 22,445 | 58,177 | |
Retail and certificate loans held for investment at fair value | 0 | 0 | |
Other loans held for investment at fair value | 0 | 0 | |
Other assets | 11,351 | 17,156 | |
Loans held for sale at fair value | 0 | ||
Total assets | 33,796 | 75,333 | |
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 | 33,796 | 75,333 | |
Total | |||
Assets | |||
Restricted cash | 8,600 | 13,462 | |
Securities available for sale at fair value | 22,445 | 58,177 | |
Retail and certificate loans held for investment at fair value | 2,940 | 10,281 | |
Other loans held for investment at fair value | 6,375 | 20,929 | |
Other assets | 11,569 | 17,740 | |
Loans held for sale at fair value | 41,734 | ||
Total assets | 51,929 | 162,323 | |
Liabilities | |||
Retail notes, certificates and secured borrowings at fair value | 2,940 | 10,281 | |
Payable on Structured Program borrowings | 11,185 | 65,451 | |
Other liabilities | 39 | 467 | |
Total liabilities | 14,164 | 76,199 | |
Total net assets | $ 37,765 | $ 86,124 | |
[1]Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included in the Condensed 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. September 30, 2022 December 31, 2021 Assets of consolidated VIEs, included in total assets above Restricted cash $ 8,600 $ 13,462 Loans held for sale at fair value — 41,734 Retail and certificate loans held for investment at fair value 2,940 10,281 Other loans held for investment at fair value 6,375 20,929 Other assets 218 584 Total assets of consolidated VIEs $ 18,133 $ 86,990 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 2,940 $ 10,281 Payable on Structured Program borrowings 11,185 65,451 Other liabilities 39 467 Total liabilities of consolidated VIEs $ 14,164 $ 76,199 |
Securitizations and Variable _4
Securitizations and Variable Interest Entities - Unconsolidated VIEs with Significant Continuing Involvement (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Assets | $ 6,775,074 | $ 4,900,319 |
Investment Fund | ||
Variable Interest Entity [Line Items] | ||
Assets | 625,017 | 1,386,279 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 33,796 | 75,333 |
Carrying value | 33,796 | 75,333 |
Total exposure | 33,796 | 75,333 |
Securities Available for Sale | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 22,445 | 58,177 |
Total exposure | 22,445 | 58,177 |
Other Assets | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 11,351 | 17,156 |
Total exposure | $ 11,351 | $ 17,156 |
Securitizations and Variable _5
Securitizations and Variable Interest Entities - Summary of Personal Whole Loan Securitizations and Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||||
Proceeds from sale of securities by consolidated VIE | $ 0 | $ 106,192 | ||
Unconsolidated Trusts and 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 | $ 0 | 41,023 | 0 |
Net gains recognized from loans securitized or sold | 0 | 0 | 259 | 0 |
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement | 0 | 0 | 2,180 | 0 |
Cash proceeds from servicing and other administrative fees on loans securitized or sold | 1,782 | 5,152 | 7,294 | 19,600 |
Proceeds from sale of securities by consolidated VIE | 0 | 0 | 5,320 | 0 |
Cash proceeds for interest received on senior securities and subordinated securities | $ 1,294 | $ 975 | $ 6,373 | $ 6,586 |
Securitizations and Variable _6
Securitizations and Variable Interest Entities - Off-balance Sheet Loans Sold or Securitized (Details) - Off-balance Sheet Loans - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding principal balance | $ 574.7 | $ 1,300 |
Off-balance sheet loans, principal amount outstanding, 31 days or more past due | $ 16.9 | $ 35 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Loans held for sale at fair value | $ 90,058 | $ 142,370 | |
Retail and certificate loans held for investment at fair value | [1] | 87,144 | 229,719 |
Other loans held for investment at fair value | [1] | 15,057 | 21,240 |
Securities available for sale: | |||
Securities available for sale at fair value | 359,157 | 263,530 | |
Servicing assets | 86,518 | 67,726 | |
Other assets | 5,437 | 6,124 | |
Total assets | 643,371 | 730,709 | |
Liabilities | |||
Retail notes, certificates and secured borrowings | [1] | 87,144 | 229,719 |
Payable on Structured Program borrowings | [1] | 11,185 | 65,451 |
Other liabilities | 11,042 | 12,911 | |
Total liabilities | 109,371 | 308,081 | |
U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 216,710 | 123,699 | |
U.S. agency securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 75,385 | 26,172 | |
Commercial mortgage-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 23,732 | 26,098 | |
Asset-backed senior securities and subordinated securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 16,598 | 39,891 | |
Other asset-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 18,533 | 26,133 | |
CLUB Certificate asset-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 5,848 | 18,285 | |
Municipal securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 2,351 | 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 | 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 | 0 | |
Level 1 Inputs | U.S. agency 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 | 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 | Other asset-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 0 | 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 | 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 | 345,865 | 233,483 | |
Servicing assets | 0 | 0 | |
Other assets | 0 | 2,812 | |
Total assets | 345,865 | 236,295 | |
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 | 216,710 | 123,699 | |
Level 2 Inputs | U.S. agency securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 75,385 | 26,172 | |
Level 2 Inputs | Commercial mortgage-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 23,732 | 26,098 | |
Level 2 Inputs | Asset-backed senior securities and subordinated securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 9,154 | 28,129 | |
Level 2 Inputs | Other asset-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 18,533 | 26,133 | |
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 | 2,351 | 3,252 | |
Level 3 Inputs | |||
Assets | |||
Loans held for sale at fair value | 90,058 | 142,370 | |
Retail and certificate loans held for investment at fair value | 87,144 | 229,719 | |
Other loans held for investment at fair value | 15,057 | 21,240 | |
Securities available for sale: | |||
Securities available for sale at fair value | 13,292 | 30,047 | |
Servicing assets | 86,518 | 67,726 | |
Other assets | 5,437 | 3,312 | |
Total assets | 297,506 | 494,414 | |
Liabilities | |||
Retail notes, certificates and secured borrowings | 87,144 | 229,719 | |
Payable on Structured Program borrowings | 11,185 | 65,451 | |
Other liabilities | 11,042 | 12,911 | |
Total liabilities | 109,371 | 308,081 | |
Level 3 Inputs | U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 0 | 0 | |
Level 3 Inputs | U.S. agency 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 | 0 | |
Level 3 Inputs | Asset-backed senior securities and subordinated securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 7,444 | 11,762 | |
Level 3 Inputs | Other asset-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 0 | 0 | |
Level 3 Inputs | CLUB Certificate asset-backed securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | 5,848 | 18,285 | |
Level 3 Inputs | Municipal securities | |||
Securities available for sale: | |||
Securities available for sale at fair value | $ 0 | $ 0 | |
[1]Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included in the Condensed 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. September 30, 2022 December 31, 2021 Assets of consolidated VIEs, included in total assets above Restricted cash $ 8,600 $ 13,462 Loans held for sale at fair value — 41,734 Retail and certificate loans held for investment at fair value 2,940 10,281 Other loans held for investment at fair value 6,375 20,929 Other assets 218 584 Total assets of consolidated VIEs $ 18,133 $ 86,990 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 2,940 $ 10,281 Payable on Structured Program borrowings 11,185 65,451 Other liabilities 39 467 Total liabilities of consolidated VIEs $ 14,164 $ 76,199 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Fair Value Reconciliation (Detail) - Loans Invested in by Company - Loans Held For Sale - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Loans | ||||
Outstanding Principal Balance, Beginning | $ 62,761 | $ 186,988 | $ 147,193 | $ 132,600 |
Valuation Adjustment, Beginning | 50 | (6,927) | (4,823) | (10,698) |
Fair Value, Beginning | 62,811 | 180,061 | 142,370 | 121,902 |
Outstanding Principal Balance, Originations and purchases | 2,298,086 | 2,339,869 | 7,297,510 | 5,320,264 |
Valuation Adjustment, Originations and purchases | 0 | 0 | 0 | (1,629) |
Fair Value, Originations and purchases | 2,298,086 | 2,339,869 | 7,297,510 | 5,318,635 |
Outstanding Principal Balance, Sales | (2,264,859) | (2,342,158) | (7,315,612) | (5,210,803) |
Valuation Adjustment, Sales | (188) | (85) | (18,979) | 10,568 |
Fair Value, Sales | (2,265,047) | (2,342,243) | (7,334,591) | (5,200,235) |
Outstanding Principal Balance, Principal payments and retirements | (4,592) | (27,211) | (24,990) | (78,946) |
Valuation Adjustment, Principal payments and retirements | 0 | 0 | 0 | 0 |
Fair Value, Principal payments and retirements | (4,592) | (27,211) | (24,990) | (78,946) |
Outstanding Principal Balance, Charge-offs, net of recoveries | (17) | (1,138) | (834) | (6,765) |
Valuation Adjustment, Charge-offs, net of recoveries | 17 | (209) | (628) | 3,711 |
Fair Value, Charge-offs, net of recoveries | 0 | (1,347) | (1,462) | (3,054) |
Outstanding Principal Balance, Change in fair value recorded in earnings | 0 | 0 | 0 | 0 |
Valuation Adjustment, Change in fair value recorded in earnings | (1,200) | 3,031 | 23,109 | (6,142) |
Fair Value, Change in fair value recorded in earnings | (1,200) | 3,031 | 23,109 | (6,142) |
Outstanding Principal Balance, Transfers to/from loans held for investment | (11,888) | |||
Valuation Adjustment, Transfers to/from loans held for investment | 0 | |||
Fair Value, Transfers to/from loans held for investment | (11,888) | |||
Outstanding Principal Balance, Ending | 91,379 | 156,350 | 91,379 | 156,350 |
Valuation Adjustment, Ending | (1,321) | (4,190) | (1,321) | (4,190) |
Fair Value, Ending | $ 90,058 | $ 152,160 | $ 90,058 | $ 152,160 |
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
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% | 7.50% |
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% | 10% |
Net cumulative expected loss rates | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 1% | 2.40% |
Net cumulative expected loss rates | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 29.80% | 26.40% |
Net cumulative expected loss rates | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 12.70% | 10.20% |
Cumulative expected prepayment rates | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 30.60% | 32.10% |
Cumulative expected prepayment rates | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 47% | 45.90% |
Cumulative expected prepayment rates | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 39.10% | 38.40% |
Fair Value of Assets and Liab_6
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in rate | 0.10% | 0.10% |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted-average market servicing rate assumptions, servicing assets | 0.62% | 0.62% |
Servicing rate increase by .1% | $ (11,563) | $ (9,495) |
Servicing rate decrease by .1% | $ 11,563 | $ 9,495 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Fair Value of Servicing Assets to Adverse Changes in Key Assumptions (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | $ 86,518 | $ 67,726 | ||||
Level 3 Inputs | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | 86,518 | 67,726 | ||||
Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | 86,518 | $ 79,427 | 67,726 | $ 63,573 | $ 58,728 | $ 56,347 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Servicing Assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | 86,518 | 67,726 | ||||
Discount rates, impact of 100 basis point increase | (745) | (558) | ||||
Discount rates, impact of 200 basis point increase | (1,489) | (1,115) | ||||
Expected credit loss on rates on underlying loans, 10% adverse change | (837) | (693) | ||||
Expected credit loss on rates on underlying loans, 20% adverse change | (1,673) | (1,386) | ||||
Expected prepayment rates, 10% adverse change | (2,178) | (2,401) | ||||
Expected prepayment rates, 20% adverse change | $ (4,356) | $ (4,802) |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Servicing Assets, Changes in fair value due to: | ||||
Fair value at beginning of period | $ 67,726 | |||
Fair value at end of period | $ 86,518 | 86,518 | ||
Fair Value, Measurements, Recurring | ||||
Servicing Assets, Changes in fair value due to: | ||||
Fair value at beginning of period | 79,427 | $ 58,728 | 67,726 | $ 56,347 |
Issuances | 22,319 | 21,071 | 73,774 | 46,274 |
Change in fair value, included in Marketplace revenue | (14,689) | (14,984) | (52,702) | (39,584) |
Other net changes included in Deferred revenue | (539) | (1,242) | (2,280) | 536 |
Fair value at end of period | $ 86,518 | $ 63,573 | $ 86,518 | $ 63,573 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Other assets | $ 5,437 | $ 6,124 |
Loans held for sale | 90,058 | 142,370 |
Total assets | 643,371 | 730,709 |
Liabilities | ||
Other liabilities | 11,042 | 12,911 |
Total liabilities | 109,371 | 308,081 |
Level 1 Inputs | ||
Assets | ||
Other assets | 0 | 0 |
Loans held for sale | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 Inputs | ||
Assets | ||
Other assets | 0 | 2,812 |
Loans held for sale | 0 | 0 |
Total assets | 345,865 | 236,295 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 Inputs | ||
Assets | ||
Other assets | 5,437 | 3,312 |
Loans held for sale | 90,058 | 142,370 |
Total assets | 297,506 | 494,414 |
Liabilities | ||
Other liabilities | 11,042 | 12,911 |
Total liabilities | 109,371 | 308,081 |
Carrying Amount | ||
Assets | ||
Loans and leases held for investment, net | 4,503,726 | 2,754,737 |
Other assets | 28,638 | 18,274 |
Loans held for sale | 248,878 | |
Total assets | 4,532,364 | 3,021,889 |
Liabilities | ||
Deposits | 242,126 | 68,405 |
Short-term borrowings | 4,803 | 27,780 |
Advances from PPPLF | 91,671 | 271,933 |
Other long-term debt | 15,300 | 15,455 |
Other liabilities | 63,758 | 51,655 |
Total liabilities | 417,658 | 435,228 |
Balance at Fair Value | ||
Assets | ||
Loans and leases held for investment, net | 4,786,152 | 2,964,691 |
Other assets | 28,667 | 18,274 |
Loans held for sale | 251,101 | |
Total assets | 4,814,819 | 3,234,066 |
Liabilities | ||
Deposits | 242,126 | 68,405 |
Short-term borrowings | 4,803 | 27,780 |
Advances from PPPLF | 91,671 | 271,933 |
Other long-term debt | 15,300 | 15,455 |
Other liabilities | 63,758 | 51,655 |
Total liabilities | 417,658 | 435,228 |
Balance at Fair Value | Level 1 Inputs | ||
Assets | ||
Loans and leases held for investment, net | 0 | 0 |
Other assets | 0 | 0 |
Loans held for sale | 0 | |
Total assets | 0 | 0 |
Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Advances from PPPLF | 0 | 0 |
Other long-term debt | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Balance at Fair Value | Level 2 Inputs | ||
Assets | ||
Loans and leases held for investment, net | 0 | 0 |
Other assets | 27,018 | 15,630 |
Loans held for sale | 0 | |
Total assets | 27,018 | 15,630 |
Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 4,803 | 17,595 |
Advances from PPPLF | 0 | 0 |
Other long-term debt | 0 | 0 |
Other liabilities | 28,310 | 22,187 |
Total liabilities | 33,113 | 39,782 |
Balance at Fair Value | Level 3 Inputs | ||
Assets | ||
Loans and leases held for investment, net | 4,786,152 | 2,964,691 |
Other assets | 1,649 | 2,644 |
Loans held for sale | 251,101 | |
Total assets | 4,787,801 | 3,218,436 |
Liabilities | ||
Deposits | 242,126 | 68,405 |
Short-term borrowings | 0 | 10,185 |
Advances from PPPLF | 91,671 | 271,933 |
Other long-term debt | 15,300 | 15,455 |
Other liabilities | 35,448 | 29,468 |
Total liabilities | $ 384,545 | $ 395,446 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Summary of Property, Equipment and Software (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Software | $ 168,545 | $ 121,102 |
Leasehold improvements | 31,213 | 37,347 |
Computer equipment | 27,660 | 29,598 |
Furniture and fixtures | 6,064 | 8,346 |
Total property, equipment and software | 233,482 | 196,393 |
Accumulated depreciation and amortization | (103,525) | (98,397) |
Total property, equipment and software, net | 129,957 | 97,996 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Software | 44,900 | 14,700 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Software | $ 10,100 | $ 2,500 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization expense | [1] | $ 32,277 | $ 33,823 | ||
Property, Equipment and Software | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization expense | $ 9,500 | $ 9,000 | $ 28,300 | $ 29,100 | |
[1]Prior period amounts have been reclassified to conform to the current period presentation. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 75,717,000 | $ 75,717,000 | $ 75,717,000 | ||
Goodwill impairment | 0 | $ 0 | 0 | $ 0 | |
Amortization expense | 1,200,000 | 1,300,000 | 3,700,000 | 3,900,000 | |
Impairment of intangible assets | $ 0 | $ 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 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying value | $ 17,512 | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 54,500 | $ 54,500 |
Accumulated amortization | (36,988) | (33,319) |
Net carrying value | $ 17,512 | $ 21,181 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Expected Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 1,178 |
2023 | 4,198 |
2024 | 3,549 |
2025 | 2,901 |
2026 | 2,252 |
Thereafter | 3,434 |
Net carrying value | $ 17,512 |
Other Assets (Detail)
Other Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deferred tax assets, net | $ 171,206 | $ 0 | |
Servicing assets | 88,138 | 70,370 | |
Operating lease assets | 69,936 | 77,316 | |
Nonmarketable equity investments | 39,569 | 31,726 | |
Intangible assets, net | 17,512 | 21,181 | |
Other | 108,771 | 101,953 | |
Other assets | [1] | 495,132 | 302,546 |
Principal balance of underlying loan servicing rights | $ 12,000,000 | $ 10,300,000 | |
[1]Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included in the Condensed 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. September 30, 2022 December 31, 2021 Assets of consolidated VIEs, included in total assets above Restricted cash $ 8,600 $ 13,462 Loans held for sale at fair value — 41,734 Retail and certificate loans held for investment at fair value 2,940 10,281 Other loans held for investment at fair value 6,375 20,929 Other assets 218 584 Total assets of consolidated VIEs $ 18,133 $ 86,990 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 2,940 $ 10,281 Payable on Structured Program borrowings 11,185 65,451 Other liabilities 39 467 Total liabilities of consolidated VIEs $ 14,164 $ 76,199 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Interest-bearing deposits: | ||
Savings and money market accounts | $ 2,486,469 | $ 856,989 |
Checking accounts | 2,139,537 | 1,993,809 |
Certificates of deposit | 242,126 | 68,405 |
Total | 4,868,132 | 2,919,203 |
Noninterest-bearing | 255,374 | 216,585 |
Total deposits | 5,123,506 | 3,135,788 |
Deposits at or above FDIC insurance limit | $ 9,700 | $ 14,000 |
Deposits - Maturity Schedule (D
Deposits - Maturity Schedule (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
2022 | $ 10,496 | |
2023 | 137,586 | |
2024 | 75,236 | |
2025 | 9,336 | |
2026 | 945 | |
Thereafter | 8,527 | |
Total certificates of deposit | $ 242,126 | $ 68,405 |
Short-term Borrowings and Lon_3
Short-term Borrowings and Long-term Debt - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Securities Sold under Agreements to Repurchase | ||
Debt Instrument [Line Items] | ||
Financial instruments, owned, at fair value | $ 5 | $ 50.5 |
PPPLF | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 91.7 | 271.9 |
Payables to Securitization Holders | Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Restricted cash | 6.2 | 11.2 |
Payables to Securitization Holders | Consolidated VIEs | Loans Held for Investment | Loans Related to Consolidation of Securitization Trust | Structured Program Borrowings | ||
Debt Instrument [Line Items] | ||
Financial instruments, owned, at fair value | 6.4 | |
Payables to Securitization Holders | Consolidated VIEs | Loans Held for Investment and Loans Held for Sale | Loans Related to Consolidation of Securitization Trust | Structured Program Borrowings | ||
Debt Instrument [Line Items] | ||
Financial instruments, owned, at fair value | 62.7 | |
Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 15.3 | $ 15.3 |
London Interbank Offered Rate (LIBOR) | Securities Sold under Agreements to Repurchase | Minimum | ||
Debt Instrument [Line Items] | ||
Borrowings interest rate spread (percent) | 4.04% | 3.12% |
London Interbank Offered Rate (LIBOR) | Securities Sold under Agreements to Repurchase | Maximum | ||
Debt Instrument [Line Items] | ||
Borrowings interest rate spread (percent) | 6.70% | 6.72% |
London Interbank Offered Rate (LIBOR) | Subordinated Notes | ||
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 | $ 4.8 | $ 27.8 |
Payable to Securitization Note and Certificate Holders at Fair Value | Consolidated VIEs | Loans Related to Consolidation of Securitization Trust | ||
Debt Instrument [Line Items] | ||
Payable to Structured Program note and certificate holders | $ 11.2 | $ 65.5 |
Short-term Borrowings and Lon_4
Short-term Borrowings and Long-term Debt - Schedule of Notes, Certificates and Secured Borrowings at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Retail notes | $ 84,203 | $ 219,435 |
Certificates and secured borrowings | 2,941 | 10,284 |
Total retail notes, certificates and secured borrowings | $ 87,144 | $ 229,719 |
Other Liabilities (Detail)
Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |||
Accounts payable and accrued expenses | $ 92,796 | $ 100,972 | |
Operating lease liabilities | 83,561 | 91,588 | |
Payable to investors | 28,310 | 22,187 | |
Other | 115,388 | 89,204 | |
Other liabilities | [1] | $ 320,055 | $ 303,951 |
[1]Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included in the Condensed 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. September 30, 2022 December 31, 2021 Assets of consolidated VIEs, included in total assets above Restricted cash $ 8,600 $ 13,462 Loans held for sale at fair value — 41,734 Retail and certificate loans held for investment at fair value 2,940 10,281 Other loans held for investment at fair value 6,375 20,929 Other assets 218 584 Total assets of consolidated VIEs $ 18,133 $ 86,990 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 2,940 $ 10,281 Payable on Structured Program borrowings 11,185 65,451 Other liabilities 39 467 Total liabilities of consolidated VIEs $ 14,164 $ 76,199 |
Employee Incentive Plans - Sche
Employee Incentive Plans - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 16,743 | $ 16,809 | $ 50,210 | $ 49,712 |
RSUs and PBRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 16,737 | 16,691 | 50,164 | 49,130 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6 | $ 118 | $ 46 | $ 582 |
Employee Incentive Plans - Addi
Employee Incentive Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 5,216,789 | |||
Equity instruments other than options, aggregate fair value | $ 74.4 | |||
Unrecognized compensation cost related to unvested awards | $ 114.5 | $ 114.5 | ||
Unrecognized compensation cost, period for recognition | 1 year 10 months 24 days | |||
PBRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 743,074 | |||
Equity instruments other than options, aggregate fair value | $ 6.6 | |||
Unrecognized compensation cost related to unvested awards | 9.6 | $ 9.6 | ||
Unrecognized compensation cost, period for recognition | 1 year 2 months 12 days | |||
Internal-use software | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, capitalized amount | $ 2.2 | $ 1.2 | $ 5.9 | $ 3.3 |
Employee Incentive Plans - RSU
Employee Incentive Plans - RSU and PBRSU Activity and Weighted Average Grant Date Fair Value table (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
RSUs | |
Number of Units | |
Unvested, beginning (shares) | shares | 9,703,751 |
Granted (shares) | shares | 5,216,789 |
Vested (shares) | shares | (3,773,222) |
Forfeited/expired (shares) | shares | (1,351,990) |
Unvested, ending (shares) | shares | 9,795,328 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning ($ per share) | $ / shares | $ 12.44 |
Granted ($ per share) | $ / shares | 14.26 |
Vested ($ per share) | $ / shares | 12.59 |
Forfeited/expired ($ per share) | $ / shares | 14.09 |
Unvested, ending ($ per share) | $ / shares | $ 13.09 |
PBRSUs | |
Number of Units | |
Unvested, beginning (shares) | shares | 1,771,869 |
Granted (shares) | shares | 743,074 |
Vested (shares) | shares | (506,696) |
Unvested, ending (shares) | shares | 2,008,247 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning ($ per share) | $ / shares | $ 9.72 |
Granted ($ per share) | $ / shares | 8.83 |
Vested ($ per share) | $ / shares | 5.48 |
Unvested, ending ($ per share) | $ / shares | $ 10.47 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (7,243) | $ 2,682 | $ (134,209) | $ 98 |
Benefit for release of valuation allowance | 5,000 | $ 140,300 | ||
Tax credits | 4,600 | |||
State income tax expense | $ 2,400 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets (liabilities), net | $ 229,269 | $ 223,367 |
Valuation allowance | (58,063) | (223,367) |
Deferred tax assets, net of valuation allowance | $ 171,206 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Sales-type lease, interest income | $ 2.5 | $ 2.9 | $ 7.7 | $ 8.1 |
Lease renewal term | 15 years | 15 years | ||
Security deposit | $ 0.4 | $ 0.4 | ||
Letters of credit outstanding, amount | $ 3.9 | $ 3.9 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 9 years | 9 years |
Leases - Components of Equipmen
Leases - Components of Equipment Finance Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Lease receivables | $ 144,433 | $ 122,927 |
Unguaranteed residual asset values | 40,375 | 36,837 |
Unearned income | (18,253) | (10,989) |
Deferred fees | 892 | 380 |
Total | $ 167,447 | $ 149,155 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Receivable (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 | $ 12,639 |
2023 | 47,231 |
2024 | 39,093 |
2025 | 26,387 |
2026 | 15,988 |
Thereafter | 12,412 |
Total lease payments | 153,750 |
Discount effect | (9,317) |
Present value of future minimum lease payments | $ 144,433 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease assets, balance sheet classification | Other assets | Other assets |
Operating lease assets | $ 69,936 | $ 77,316 |
Operating lease liabilities, balance sheet classification | Other liabilities | Other liabilities |
Operating lease liabilities | $ 83,561 | $ 91,588 |
Leases - Net Lease Costs (Detai
Leases - Net Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Net lease costs | $ (3,195) | $ (3,023) | $ (9,194) | $ (9,703) |
Variable lease costs | 200 | 400 | 900 | 900 |
Occupancy | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs | (3,195) | (4,561) | (12,041) | (14,315) |
Other non-interest income | ||||
Lessee, Lease, Description [Line Items] | ||||
Sublease revenue | $ 0 | $ 1,538 | $ 2,847 | $ 4,612 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Leased assets obtained in exchange for new and amended operating lease liabilities | $ 0 | $ 0 | $ 0 | $ 12,914 |
Leases - Future Operating Lease
Leases - Future Operating Lease Payments and Sublease Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Lease Payments | ||
2022 | $ 3,143 | |
2023 | 12,798 | |
2024 | 13,054 | |
2025 | 13,184 | |
2026 | 13,375 | |
Thereafter | 48,974 | |
Total lease payments | 104,528 | |
Discount effect | (20,967) | |
Present value of future minimum lease payments | $ 83,561 | $ 91,588 |
Leases - Weighted-average Lease
Leases - Weighted-average Lease Term and Discount Rate (Details) | Sep. 30, 2022 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 7 years 11 months 4 days |
Weighted-average discount rate | 5.42% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Unfunded Loan Commitment, Commitments To Extend Credit | |||
Loss Contingencies [Line Items] | |||
Unfunded loan commitments | $ 144 | $ 110.8 | $ 115.5 |
Regulatory Requirements - Narra
Regulatory Requirements - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Regulated Operations [Abstract] | ||
Common equity tier one risk-based capital ratio, internal minimum | 11% | |
Tier one risk-based capital ratio, internal minimum | 11% | |
Total risk-based capital ratio, internal minimum | 13% | |
Tier one leverage ratio, internal minimum | 11% | |
Capital benefit used in the computation of common equity tier one capital | $ 35 |
Regulatory Requirements - Summa
Regulatory Requirements - Summary of Regulatory Capital and Ratios (Details) $ in Millions | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
LendingClub Bank | ||
Amount | ||
CET1 capital | $ 760.4 | $ 523.7 |
Tier 1 capital | 760.4 | 523.7 |
Total capital | 825.8 | 563.7 |
Tier 1 leverage | 760.4 | 523.7 |
Risk-weighted assets | 5,018.3 | 3,130.4 |
Quarterly adjusted average assets | $ 5,692 | $ 3,667.7 |
Ratio | ||
CET1 capital | 0.152 | 0.167 |
Tier 1 capital | 0.152 | 0.167 |
Total capital | 0.165 | 0.180 |
Tier 1 leverage | 0.134 | 0.143 |
Minimum to be Well Capitalized, Ratio [Abstract] | ||
CET1 capital | 0.070 | |
Tier 1 capital | 0.085 | |
Total capital | 0.105 | |
Tier 1 leverage | 0.040 | |
LendingClub | ||
Amount | ||
CET1 capital | $ 953.2 | $ 710 |
Tier 1 capital | 953.2 | 710 |
Total capital | 1,033.2 | 767.9 |
Tier 1 leverage | 953.2 | 710 |
Risk-weighted assets | 5,210.2 | 3,333.2 |
Quarterly adjusted average assets | $ 6,061.4 | $ 4,301.7 |
Ratio | ||
CET1 capital | 0.183 | 0.213 |
Tier 1 capital | 0.183 | 0.213 |
Total capital | 0.198 | 0.230 |
Tier 1 leverage | 0.157 | 0.165 |
Minimum to be Well Capitalized, Ratio [Abstract] | ||
CET1 capital | 0.070 | |
Tier 1 capital | 0.085 | |
Total capital | 0.105 | |
Tier 1 leverage | 0.040 |
Other Non-interest Income and_3
Other Non-interest Income and Non-interest Expense - Summary of Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Referral revenue | $ 3,144 | $ 4,293 | $ 10,860 | $ 9,649 |
Realized gains (losses) on sales of securities available for sale and other investments | 0 | 0 | 36 | (96) |
Other | 4,256 | 2,029 | 13,843 | 9,117 |
Other non-interest income | $ 7,400 | $ 6,322 | $ 24,739 | $ 18,670 |
Other Non-interest Income and_4
Other Non-interest Income and Non-interest Expense - Summary of Other Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Consumer credit services | $ 4,610 | $ 4,266 | $ 15,804 | $ 11,798 |
Other | 10,496 | 11,341 | 30,727 | 30,575 |
Other non-interest expense | $ 15,106 | $ 15,607 | $ 46,531 | $ 42,373 |
Segment Reporting - Statements
Segment Reporting - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||||
Marketplace revenue | $ 173,837 | $ 174,556 | $ 560,187 | $ 408,018 | ||
Other non-interest income | 7,400 | 6,322 | 24,739 | 18,670 | ||
Total non-interest income | 181,237 | 180,878 | 584,926 | 426,688 | ||
Interest income | 143,220 | 82,860 | 383,341 | 195,177 | ||
Interest expense | (19,544) | (17,572) | (43,759) | (65,478) | ||
Net interest income | 123,676 | 65,288 | 339,582 | 129,699 | ||
Total net revenue | 304,913 | 246,166 | 924,508 | 556,387 | ||
(Provision for) reversal of credit losses | (82,739) | (37,524) | (205,814) | (93,651) | ||
Non-interest expense | (186,219) | (178,775) | (586,809) | (473,166) | ||
Income (Loss) before income tax benefit (expense) | 35,955 | 29,867 | 131,885 | (10,430) | ||
Income tax benefit (expense) | 7,243 | (2,682) | 134,209 | (98) | ||
Net income (loss) | 43,198 | 27,185 | 266,094 | (10,528) | $ (160,883) | |
Capital expenditures | 17,301 | 9,451 | 54,659 | 24,435 | ||
Depreciation and amortization | 10,681 | 10,549 | 32,277 | 33,823 | ||
Operating Segments | LendingClub Bank | ||||||
Segment Reporting Information [Line Items] | ||||||
Marketplace revenue | 153,504 | 151,109 | $ 315,885 | 509,426 | ||
Other non-interest income | 25,240 | 25,393 | 73,433 | 64,779 | ||
Total non-interest income | 178,744 | 176,502 | 389,318 | 574,205 | ||
Interest income | 137,142 | 64,606 | 127,429 | 357,117 | ||
Interest expense | (15,277) | (2,270) | (5,489) | (25,134) | ||
Net interest income | 121,865 | 62,336 | 121,940 | 331,983 | ||
Total net revenue | 300,609 | 238,838 | 511,258 | 906,188 | ||
(Provision for) reversal of credit losses | (82,739) | (38,019) | (96,938) | (205,814) | ||
Non-interest expense | (177,714) | (161,101) | (374,782) | (552,809) | ||
Income (Loss) before income tax benefit (expense) | 40,156 | 39,718 | 39,538 | 147,565 | ||
Income tax benefit (expense) | (9,440) | (4,670) | 7,866 | (39,113) | ||
Net income (loss) | 30,716 | 35,048 | 47,404 | 108,452 | ||
Capital expenditures | 17,301 | 9,451 | 22,624 | 54,659 | ||
Depreciation and amortization | 4,099 | 1,220 | 2,810 | 11,109 | ||
Operating Segments | LendingClub Corporation | ||||||
Segment Reporting Information [Line Items] | ||||||
Marketplace revenue | 9,015 | 23,447 | 35,313 | 92,133 | ||
Other non-interest income | 4,794 | 4,140 | 12,931 | 12,519 | ||
Total non-interest income | 13,809 | 27,587 | 48,244 | 104,652 | ||
Interest income | 6,078 | 18,254 | 26,224 | 67,748 | ||
Interest expense | (4,267) | (15,302) | (18,625) | (59,989) | ||
Net interest income | 1,811 | 2,952 | 7,599 | 7,759 | ||
Total net revenue | 15,620 | 30,539 | 55,843 | 112,411 | ||
(Provision for) reversal of credit losses | 0 | 495 | 0 | 3,287 | ||
Non-interest expense | (19,821) | (40,885) | (71,523) | (165,666) | ||
Income (Loss) before income tax benefit (expense) | (4,201) | (9,851) | (15,680) | (49,968) | ||
Income tax benefit (expense) | 16,683 | 12,607 | 120,274 | 23,821 | ||
Net income (loss) | 12,482 | 2,756 | 104,594 | (26,147) | ||
Capital expenditures | 0 | 0 | 0 | 1,811 | ||
Depreciation and amortization | 6,582 | 9,329 | 21,168 | $ 31,013 | ||
Intercompany Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Marketplace revenue | 11,318 | 0 | 0 | 15,448 | ||
Other non-interest income | (22,634) | (23,211) | (67,282) | (52,971) | ||
Total non-interest income | (11,316) | (23,211) | (67,282) | (37,523) | ||
Interest income | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Net interest income | 0 | 0 | 0 | 0 | ||
Total net revenue | (11,316) | (23,211) | (67,282) | (37,523) | ||
(Provision for) reversal of credit losses | 0 | 0 | 0 | 0 | ||
Non-interest expense | 11,316 | 23,211 | 67,282 | 37,523 | ||
Income (Loss) before income tax benefit (expense) | 0 | 0 | 0 | 0 | ||
Income tax benefit (expense) | 0 | (10,619) | (31,785) | 53,048 | ||
Net income (loss) | 0 | (10,619) | (31,785) | 53,048 | ||
Capital expenditures | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting - Balance She
Segment Reporting - Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | [2] | Dec. 31, 2019 | |
Assets | ||||||||||
Total cash and cash equivalents | $ 952,841 | $ 687,126 | ||||||||
Restricted cash | [1] | 66,285 | 76,460 | |||||||
Securities available for sale at fair value | 359,157 | 263,530 | ||||||||
Loans held for sale | [1] | 90,058 | 391,248 | |||||||
Loans and leases held for investment, net | 4,503,726 | 2,754,737 | ||||||||
Retail and certificate loans held for investment at fair value | [1] | 87,144 | 229,719 | |||||||
Other loans held for investment at fair value | [1] | 15,057 | 21,240 | |||||||
Property, equipment and software, net | 129,957 | 97,996 | ||||||||
Investment in subsidiary | 0 | 0 | ||||||||
Goodwill | 75,717 | 75,717 | ||||||||
Other assets | [1] | 495,132 | 302,546 | |||||||
Total assets | 6,775,074 | 4,900,319 | ||||||||
Liabilities and Equity | ||||||||||
Total deposits | 5,123,506 | 3,135,788 | ||||||||
Short-term borrowings | 4,803 | 27,780 | ||||||||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 91,671 | 271,933 | ||||||||
Retail notes, certificates and secured borrowings at fair value | [1] | 87,144 | 229,719 | |||||||
Payable on Structured Program borrowings | [1] | 11,185 | 65,451 | |||||||
Other long-term debt | 15,300 | 15,455 | ||||||||
Other liabilities | [1] | 320,055 | 303,951 | |||||||
Liabilities | 5,653,664 | 4,050,077 | ||||||||
Total equity | 1,121,410 | $ 1,079,117 | 850,242 | $ 804,790 | $ 762,359 | $ 724,171 | $ 733,892 | $ 900,187 | ||
Total liabilities and equity | 6,775,074 | 4,900,319 | ||||||||
Operating Segments | LendingClub Bank | ||||||||||
Assets | ||||||||||
Total cash and cash equivalents | 896,519 | 659,919 | ||||||||
Restricted cash | 0 | 0 | ||||||||
Securities available for sale at fair value | 338,096 | 205,730 | ||||||||
Loans held for sale | 90,058 | 335,449 | ||||||||
Loans and leases held for investment, net | 4,503,726 | 2,754,737 | ||||||||
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 | 89,576 | 36,424 | ||||||||
Investment in subsidiary | 0 | 0 | ||||||||
Goodwill | 75,717 | 75,717 | ||||||||
Other assets | 305,456 | 254,075 | ||||||||
Total assets | 6,299,148 | 4,322,051 | ||||||||
Liabilities and Equity | ||||||||||
Total deposits | 5,188,845 | 3,196,929 | ||||||||
Short-term borrowings | 165 | 165 | ||||||||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 91,671 | 271,933 | ||||||||
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 | 205,814 | 218,775 | ||||||||
Liabilities | 5,486,495 | 3,687,802 | ||||||||
Total equity | 812,653 | 634,249 | ||||||||
Total liabilities and equity | 6,299,148 | 4,322,051 | ||||||||
Operating Segments | LendingClub Corporation | ||||||||||
Assets | ||||||||||
Total cash and cash equivalents | 109,200 | 88,268 | ||||||||
Restricted cash | 78,746 | 76,540 | ||||||||
Securities available for sale at fair value | 21,061 | 57,800 | ||||||||
Loans held for sale | 0 | 55,799 | ||||||||
Loans and leases held for investment, net | 0 | 0 | ||||||||
Retail and certificate loans held for investment at fair value | 87,144 | 229,719 | ||||||||
Other loans held for investment at fair value | 15,057 | 21,240 | ||||||||
Property, equipment and software, net | 40,381 | 61,572 | ||||||||
Investment in subsidiary | 671,574 | 557,577 | ||||||||
Goodwill | 0 | 0 | ||||||||
Other assets | 207,556 | 168,042 | ||||||||
Total assets | 1,230,719 | 1,316,557 | ||||||||
Liabilities and Equity | ||||||||||
Total deposits | 0 | 0 | ||||||||
Short-term borrowings | 4,638 | 27,615 | ||||||||
Advances from Paycheck Protection Program Liquidity Facility (PPPLF) | 0 | 0 | ||||||||
Retail notes, certificates and secured borrowings at fair value | 87,144 | 229,719 | ||||||||
Payable on Structured Program borrowings | 11,185 | 65,451 | ||||||||
Other long-term debt | 15,300 | 15,455 | ||||||||
Other liabilities | 132,121 | 150,727 | ||||||||
Liabilities | 250,388 | 488,967 | ||||||||
Total equity | 980,331 | 827,590 | ||||||||
Total liabilities and equity | 1,230,719 | 1,316,557 | ||||||||
Intercompany Eliminations | ||||||||||
Assets | ||||||||||
Total cash and cash equivalents | (52,878) | (61,061) | ||||||||
Restricted cash | (12,461) | (80) | ||||||||
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 | (671,574) | (557,577) | ||||||||
Goodwill | 0 | 0 | ||||||||
Other assets | (17,880) | (119,571) | ||||||||
Total assets | (754,793) | (738,289) | ||||||||
Liabilities and Equity | ||||||||||
Total deposits | (65,339) | (61,141) | ||||||||
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 | (17,880) | (65,551) | ||||||||
Liabilities | (83,219) | (126,692) | ||||||||
Total equity | (671,574) | (611,597) | ||||||||
Total liabilities and equity | $ (754,793) | $ (738,289) | ||||||||
[1]Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. The following table presents the assets and liabilities of consolidated VIEs, which are included in the Condensed 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. September 30, 2022 December 31, 2021 Assets of consolidated VIEs, included in total assets above Restricted cash $ 8,600 $ 13,462 Loans held for sale at fair value — 41,734 Retail and certificate loans held for investment at fair value 2,940 10,281 Other loans held for investment at fair value 6,375 20,929 Other assets 218 584 Total assets of consolidated VIEs $ 18,133 $ 86,990 Liabilities of consolidated VIEs, included in total liabilities above Retail notes, certificates and secured borrowings at fair value $ 2,940 $ 10,281 Payable on Structured Program borrowings 11,185 65,451 Other liabilities 39 467 Total liabilities of consolidated VIEs $ 14,164 $ 76,199 |