Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 20, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $0.01 per share | |
Trading Symbol | LC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 109,648,769 | |
Entity Central Index Key | 0001409970 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and due from banks | $ 19,220 | $ 23,125 | |
Interest-bearing deposits in banks | 1,288,550 | 1,033,905 | |
Total cash and cash equivalents | 1,307,770 | 1,057,030 | |
Restricted cash | [1] | 42,487 | 67,454 |
Securities available for sale at fair value ($872,341 and $399,668 at amortized cost, respectively) | 795,669 | 345,702 | |
Loans held for sale at fair value | 362,789 | 110,400 | |
Loans and leases held for investment | 5,237,277 | 5,033,154 | |
Allowance for loan and lease losses | (350,495) | (327,852) | |
Loans and leases held for investment, net | 4,886,782 | 4,705,302 | |
Loans held for investment at fair value | [1] | 326,299 | 925,938 |
Retail and certificate loans held for investment at fair value | [1] | 18,118 | 55,425 |
Property, equipment and software, net | 159,768 | 136,473 | |
Goodwill | 75,717 | 75,717 | |
Other assets | [1] | 496,952 | 500,306 |
Total assets | 8,472,351 | 7,979,747 | |
Deposits: | |||
Interest-bearing | 6,687,069 | 6,158,560 | |
Noninterest-bearing | 313,194 | 233,993 | |
Total deposits | 7,000,263 | 6,392,553 | |
Borrowings | [1] | 10,717 | 74,858 |
Retail notes, certificates and secured borrowings at fair value | [1] | 18,118 | 55,425 |
Other liabilities | [1] | 235,034 | 292,617 |
Total liabilities | 7,264,132 | 6,815,453 | |
Equity | |||
Common stock, $0.01 par value; 180,000,000 shares authorized; 109,648,769 and 106,546,995 shares issued and outstanding, respectively | 1,096 | 1,065 | |
Additional paid-in capital | 1,660,236 | 1,628,590 | |
Accumulated deficit | (398,961) | (427,745) | |
Accumulated other comprehensive loss | (54,152) | (37,616) | |
Total equity | 1,208,219 | 1,164,294 | |
Total liabilities and equity | $ 8,472,351 | $ 7,979,747 | |
[1]Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Condensed Consolidated Financial Statements – Note 6. Securitizations and Variable Interest Entities .” |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Securities available for sale at amortized cost | $ 872,341 | $ 399,668 |
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, shares issued (in shares) | 109,648,769 | 106,546,995 |
Common stock, shares outstanding (in shares) | 109,648,769 | 106,546,995 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Non-interest income: | |||||
Marketplace revenue | $ 60,886 | $ 173,837 | $ 239,303 | $ 560,187 | |
Other non-interest income | 2,958 | 7,400 | 9,349 | 24,739 | |
Total non-interest income | 63,844 | 181,237 | 248,652 | 584,926 | |
Interest income: | |||||
Interest on loans held for sale | 9,582 | 5,879 | 19,772 | 20,459 | |
Interest and fees on loans and leases held for investment | 158,960 | 124,028 | 471,512 | 324,381 | |
Interest on loans held for investment at fair value | 11,788 | 791 | 60,372 | 2,015 | |
Interest on retail and certificate loans held for investment at fair value | 817 | 3,685 | 3,694 | 15,745 | |
Interest on securities available for sale | 9,467 | 3,820 | 19,315 | 12,757 | |
Other interest income | 16,798 | 5,017 | 49,646 | 7,984 | |
Total interest income | 207,412 | 143,220 | 624,311 | 383,341 | |
Interest expense: | |||||
Interest on deposits | 69,509 | 15,184 | 189,303 | 24,700 | |
Interest on retail notes, certificates and secured borrowings | 817 | 3,685 | 3,694 | 15,745 | |
Other interest expense | 81 | 675 | 953 | 3,314 | |
Total interest expense | 70,407 | 19,544 | 193,950 | 43,759 | |
Net interest income | 137,005 | 123,676 | 430,361 | 339,582 | |
Total net revenue | 200,849 | 304,913 | 679,013 | 924,508 | |
Provision for credit losses | 64,479 | 82,739 | 201,658 | 205,814 | |
Non-interest expense: | |||||
Compensation and benefits | 58,497 | 84,916 | 203,357 | 251,629 | |
Marketing | 19,555 | 46,031 | 70,375 | 162,608 | |
Equipment and software | 12,631 | 12,491 | 40,295 | 35,998 | |
Depreciation and amortization | 11,250 | 10,681 | 35,242 | 32,277 | |
Professional services | 8,414 | 11,943 | 27,446 | 40,487 | |
Occupancy | 4,612 | 5,051 | 13,606 | 17,279 | |
Other non-interest expense | 13,076 | 15,106 | 46,101 | 46,531 | |
Total non-interest expense | 128,035 | 186,219 | 436,422 | 586,809 | |
Income (Loss) before income tax benefit (expense) | 8,335 | 35,955 | 40,933 | 131,885 | |
Income tax benefit (expense) | (3,327) | 7,243 | (12,149) | 134,209 | |
Net income | $ 5,008 | $ 43,198 | $ 28,784 | $ 266,094 | |
Earnings per share: | |||||
Basic EPS ($ per share) | [1] | $ 0.05 | $ 0.41 | $ 0.27 | $ 2.59 |
Diluted EPS ($ per share) | [1] | $ 0.05 | $ 0.41 | $ 0.27 | $ 2.56 |
Weighted-average common shares – Basic (in shares) | [1] | 109,071,180 | 104,215,594 | 107,966,544 | 102,838,645 |
Weighted-average common shares – Diluted (in shares) | [1] | 109,073,194 | 105,853,938 | 107,969,920 | 104,116,240 |
[1]See “ Notes to Condensed Consolidated Financial Statements – Note 3. Earnings Per Share ” for additional information. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 5,008 | $ 43,198 | $ 28,784 | $ 266,094 | |
Other comprehensive loss: | |||||
Net unrealized loss on securities available for sale | (20,547) | (24,112) | (22,706) | (63,929) | |
Other comprehensive loss, before tax | (20,547) | (24,112) | (22,706) | (63,929) | |
Income tax effect | [1] | 5,583 | 6,121 | 6,170 | 17,049 |
Other comprehensive loss, net of tax | (14,964) | (17,991) | (16,536) | (46,880) | |
Total comprehensive income (loss) | $ (9,956) | $ 25,207 | $ 12,248 | $ 219,214 | |
[1]Income tax effect for the three and nine months ended September 30, 2022 reflects the release of the deferred tax asset valuation allowance on the securities available for sale portfolio. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 101,043,924 | |||||
Treasury stock, beginning (in shares) at Dec. 31, 2021 | 0 | |||||
Beginning balance at Dec. 31, 2021 | $ 850,242 | $ 1,010 | $ 1,559,616 | $ 0 | $ 7,046 | $ (717,430) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 55,608 | 55,608 | ||||
Net issuances under equity incentive plans (in shares) | 4,044,837 | 7,751 | ||||
Net issuances under equity incentive plans | (3,654) | $ 41 | (3,597) | $ (98) | ||
Net unrealized loss on securities available for sale, net of tax | (46,880) | (46,880) | ||||
Net income | 266,094 | 266,094 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 105,088,761 | |||||
Treasury stock, ending (in shares) at Sep. 30, 2022 | 7,751 | |||||
Ending balance at Sep. 30, 2022 | 1,121,410 | $ 1,051 | 1,611,627 | $ (98) | (39,834) | (451,336) |
Beginning balance (in shares) at Jun. 30, 2022 | 103,630,776 | |||||
Treasury stock, beginning (in shares) at Jun. 30, 2022 | 0 | |||||
Beginning balance at Jun. 30, 2022 | 1,079,117 | $ 1,036 | 1,594,458 | $ 0 | (21,843) | (494,534) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 18,757 | 18,757 | ||||
Net issuances under equity incentive plans (in shares) | 1,457,985 | 7,751 | ||||
Net issuances under equity incentive plans | (1,671) | $ 15 | (1,588) | $ (98) | ||
Net unrealized loss on securities available for sale, net of tax | (17,991) | (17,991) | ||||
Net income | 43,198 | 43,198 | ||||
Ending balance (in shares) at Sep. 30, 2022 | 105,088,761 | |||||
Treasury stock, ending (in shares) at Sep. 30, 2022 | 7,751 | |||||
Ending balance at Sep. 30, 2022 | $ 1,121,410 | $ 1,051 | 1,611,627 | $ (98) | (39,834) | (451,336) |
Beginning balance (in shares) at Dec. 31, 2022 | 106,546,995 | 106,546,995 | ||||
Treasury stock, beginning (in shares) at Dec. 31, 2022 | 0 | |||||
Beginning balance at Dec. 31, 2022 | $ 1,164,294 | $ 1,065 | 1,628,590 | $ 0 | (37,616) | (427,745) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 48,874 | 48,874 | ||||
Net issuances under equity incentive plans (in shares) | 3,101,774 | |||||
Net issuances under equity incentive plans | (17,197) | $ 31 | (17,228) | |||
Net unrealized loss on securities available for sale, net of tax | (16,536) | (16,536) | ||||
Net income | $ 28,784 | 28,784 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 109,648,769 | 109,648,769 | ||||
Treasury stock, ending (in shares) at Sep. 30, 2023 | 0 | |||||
Ending balance at Sep. 30, 2023 | $ 1,208,219 | $ 1,096 | 1,660,236 | $ 0 | (54,152) | (398,961) |
Beginning balance (in shares) at Jun. 30, 2023 | 108,694,120 | |||||
Treasury stock, beginning (in shares) at Jun. 30, 2023 | 0 | |||||
Beginning balance at Jun. 30, 2023 | 1,205,523 | $ 1,087 | 1,647,593 | $ 0 | (39,188) | (403,969) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 16,783 | 16,783 | ||||
Net issuances under equity incentive plans (in shares) | 954,649 | |||||
Net issuances under equity incentive plans | (4,131) | $ 9 | (4,140) | |||
Net unrealized loss on securities available for sale, net of tax | (14,964) | (14,964) | ||||
Net income | $ 5,008 | 5,008 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 109,648,769 | 109,648,769 | ||||
Treasury stock, ending (in shares) at Sep. 30, 2023 | 0 | |||||
Ending balance at Sep. 30, 2023 | $ 1,208,219 | $ 1,096 | $ 1,660,236 | $ 0 | $ (54,152) | $ (398,961) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Cash Flows from Operating Activities: | |||
Net income | $ 28,784 | $ 266,094 | |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||
Net fair value adjustments | 80,222 | (24,277) | |
Change in fair value of loan servicing assets | 41,750 | 53,928 | |
Gain on sales of loans | (35,918) | (76,983) | |
Provision for credit losses | 201,658 | 205,814 | |
Accretion of loan deferred fees and costs | (74,486) | (63,486) | |
Stock-based compensation, net | 42,122 | 50,210 | |
Depreciation and amortization | 35,242 | 32,277 | |
Income tax benefit from release of tax valuation allowance | 0 | (140,315) | |
Other, net | (8,474) | 515 | |
Net change to loans held for sale | (590,400) | 42,991 | |
Net change in operating assets and liabilities: | |||
Other assets | 23,622 | (11,152) | |
Other liabilities | (65,917) | 6,602 | |
Net cash (used for) provided by operating activities | (321,795) | 342,218 | |
Cash Flows from Investing Activities: | |||
Net change in loans and leases | 101,884 | (1,630,858) | |
Net decrease in retail and certificate loans | 39,337 | 148,963 | |
Purchases of securities available for sale | (59,336) | (222,534) | |
Proceeds from maturities and paydowns of securities available for sale | 42,856 | 69,776 | |
Purchases of property, equipment and software, net | (48,239) | (54,659) | |
Other investing activities | (8,606) | (5,704) | |
Net cash provided by (used for) investing activities | 67,896 | (1,695,016) | |
Cash Flows from Financing Activities: | |||
Net change in deposits | 599,054 | 1,987,718 | |
Principal payments on borrowings | (62,850) | (222,271) | |
Principal payments on retail notes and certificates | (39,337) | (149,115) | |
Other financing activities | (17,195) | (7,994) | |
Net cash provided by financing activities | 479,672 | 1,608,338 | |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 225,773 | 255,540 | |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,124,484 | 763,586 | |
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,350,257 | 1,019,126 | |
Supplemental Cash Flow Information: | |||
Cash paid for interest | 180,167 | 43,623 | |
Cash paid for taxes | 7,757 | 14,003 | |
Cash paid for operating leases included in the measurement of lease liabilities | 9,581 | 12,394 | |
Non-cash investing activity: | |||
Net asset-backed securities retained from Structured Program transactions | 454,831 | 0 | |
Non-cash financing activity: | |||
Derecognition of payable to securitization note and residual certificate holders held in consolidated VIE | 0 | 36,072 | |
Cash, Cash Equivalents, and Restricted Cash | |||
Cash and cash equivalents | 1,307,770 | ||
Restricted cash | [1] | 42,487 | |
Total cash, cash equivalents and restricted cash | $ 1,350,257 | $ 1,019,126 | |
[1]Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Condensed Consolidated Financial Statements – Note 6. Securitizations and Variable Interest Entities .” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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, 2022 (Annual Report) filed on February 9, 2023. Significant Accounting Policies Derivative Instruments and Hedging Activities The Company recognizes all derivative instruments at fair value, on a gross basis, as either “Other assets” or “Other liabilities” on the Balance Sheet. Changes in fair value of the derivative instruments are recognized in current period earnings. For derivative instruments that qualify as hedges, the Company designates the hedging instrument based on the exposure being hedged. The Company’s existing hedging instruments are designated as fair value hedges under the portfolio layer method, whereby changes in the fair value of the hedging instrument are substantially offset by changes in the fair value of the hedged item, both of which are recognized in “Interest and fees on loans held for investment at amortized cost” on the Income Statement. Interest payments made and/or received related to these derivative instruments are presented within the “Operating activities” section on the Statements of Cash Flows. To qualify for hedge accounting, the derivatives and related hedged items must be designated as a hedge at inception of the hedge relationship. In addition, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. For accounting hedge relationships, the Company formally assesses, both at the inception of the hedge and on an ongoing basis, if the derivatives are highly effective in offsetting designated changes in the fair value of the hedged item. The Company assesses effectiveness using a statistical regression analysis. Effectiveness may be assessed qualitatively where the critical terms of the derivative and hedged item match. 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 other changes to these significant accounting policies for the nine-month period ended September 30, 2023, except for the impact of the new adopted accounting standards noted below. Adoption of New Accounting Standards The Company adopted the following new accounting standards during the nine-month period ended September 30, 2023: The FASB issued Accounting Standards Update (ASU) 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance on troubled debt restructurings (TDRs) for creditors that have adopted the Current Expected Credit Losses (CECL) model and adds a requirement to disclose current period gross charge-offs by year of origination. The Company adopted ASU 2022-02 as of January 1, 2023, on a prospective basis. The ASU updates the requirements related to accounting for credit losses under Accounting Standards Codification 326, including removing anticipatory TDRs and requiring the use of the post-modified effective interest rate when a discounted cash flow method is used in the CECL calculation. The ASU updates disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which, if certain criteria are met, provide optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform. The provisions of this topic are elective and may be applied prospectively as of the beginning of the reporting period when the election is made through December 31, 2024. The Company adopted this standard as of April 1, 2023. The adoption of this standard did not have a material impact on the Company’s financial position, results of operations, cash flows, and disclosures. |
Marketplace Revenue
Marketplace Revenue | 9 Months Ended |
Sep. 30, 2023 | |
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: The Company receives fees from borrowers for the origination of 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 the 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 2023 2022 2023 2022 Origination fees $ 60,912 $ 127,142 $ 202,444 $ 398,487 Servicing fees 32,768 23,760 81,163 60,440 Gain on sales of loans 8,572 23,554 35,918 76,983 Net fair value adjustments (41,366) (619) (80,222) 24,277 Total marketplace revenue $ 60,886 $ 173,837 $ 239,303 $ 560,187 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table details the computation of the Company’s Basic and Diluted EPS: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic EPS: Net income attributable to stockholders $ 5,008 $ 43,198 $ 28,784 $ 266,094 Weighted-average common shares – Basic 109,071,180 104,215,594 107,966,544 102,838,645 Basic EPS $ 0.05 $ 0.41 $ 0.27 $ 2.59 Diluted EPS: Net income attributable to stockholders $ 5,008 $ 43,198 $ 28,784 $ 266,094 Weighted-average common shares – Diluted 109,073,194 105,853,938 107,969,920 104,116,240 Diluted EPS $ 0.05 $ 0.41 $ 0.27 $ 2.56 |
Securities Available for Sale
Securities Available for Sale | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale The amortized cost, gross unrealized gains and losses, and fair value of available for sale (AFS) securities were as follows: September 30, 2023 Amortized Gross Gross Fair Senior asset-backed securities related to Structured Program transactions $ 413,850 $ — $ (1,453) $ 412,397 U.S. agency residential mortgage-backed securities 263,568 — (52,331) 211,237 U.S. agency securities 93,451 — (18,372) 75,079 Mortgage-backed securities 43,162 — (7,013) 36,149 Other asset-backed securities related to Structured Program transactions (1) 26,831 4,540 (309) 31,062 Other asset-backed securities 28,217 34 (787) 27,464 Municipal securities 3,262 — (981) 2,281 Total securities available for sale (2) $ 872,341 $ 4,574 $ (81,246) $ 795,669 December 31, 2022 Amortized Gross Gross Fair U.S. agency residential mortgage-backed securities $ 255,675 $ — $ (41,248) $ 214,427 U.S. agency securities 90,447 — (16,053) 74,394 Mortgage-backed securities 26,988 — (4,470) 22,518 Asset-backed securities related to Structured Program transactions 8,322 9,395 — 17,717 Other asset-backed securities 14,959 29 (785) 14,203 Municipal securities 3,277 — (834) 2,443 Total securities available for sale (2) $ 399,668 $ 9,424 $ (63,390) $ 345,702 (1) As of September 30, 2023, $24.8 million of the other asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company’s obligations as a “sponsor” under the U.S. Risk Retention Rules. (2) As of September 30, 2023 and December 31, 2022, includes $341.6 million and $319.0 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, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Senior asset-backed securities related to Structured Program transactions $ 372,388 $ (1,453) $ — $ — $ 372,388 $ (1,453) U.S. agency residential mortgage-backed securities 21,064 (892) 190,173 (51,439) 211,237 (52,331) U.S. agency securities 2,960 (40) 72,119 (18,332) 75,079 (18,372) Mortgage-backed securities 16,278 (1,387) 19,871 (5,626) 36,149 (7,013) Other asset-backed securities 14,112 (47) 8,233 (740) 22,345 (787) Other asset-backed securities related to Structured Program transactions 21,486 (309) — — 21,486 (309) Municipal securities — — 2,281 (981) 2,281 (981) Total securities with unrealized losses $ 448,288 $ (4,128) $ 292,677 $ (77,118) $ 740,965 $ (81,246) Less than 12 months Total December 31, 2022 Fair Unrealized Fair Unrealized Fair Unrealized U.S. agency residential mortgage-backed securities $ 111,843 $ (15,831) $ 102,584 $ (25,417) $ 214,427 $ (41,248) U.S. agency securities 50,352 (7,213) 24,042 (8,840) 74,394 (16,053) Mortgage-backed securities 2,441 (229) 20,077 (4,241) 22,518 (4,470) Other asset-backed securities 4,086 (73) 6,945 (712) 11,031 (785) Municipal securities — — 2,443 (834) 2,443 (834) Total securities with unrealized losses $ 168,722 $ (23,346) $ 156,091 $ (40,044) $ 324,813 $ (63,390) There was no activity in the allowance for AFS securities during the third quarters and first nine months of 2023 and 2022. At September 30, 2023, the majority of the Company’s AFS investment portfolio was comprised of senior asset-backed securities related to Structured Program transactions and U.S. agency-backed securities. Management considers U.S. agency-backed securities to be of the highest credit quality and rating given the guarantee of principal and interest by certain U.S. government agencies. Most of the remaining securities in an unrealized loss position in the Company’s AFS investment portfolio at September 30, 2023, were rated investment grade. Substantially all of these unrealized losses in the AFS investment portfolio were caused by interest rate increases. The Company does not intend to sell the investment portfolio, and it is not more likely than not that it will be required to sell any investment before recovery of its amortized cost basis. For a description of management’s quarterly evaluation of AFS securities in an unrealized loss position, see “ Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies ” in our Annual Report. The contractual maturities of AFS securities were as follows: September 30, 2023 Amortized Cost Fair Value Weighted- average Yield (1) Due within 1 year: Senior asset-backed securities related to Structured Program transactions $ 230 $ 230 Total due within 1 year 230 230 46.15 % Due after 1 year through 5 years: Senior asset-backed securities related to Structured Program transactions 413,620 412,167 Other asset-backed securities related to Structured Program transactions 26,831 31,062 U.S. agency securities 9,000 8,567 Mortgage-backed securities 1,774 1,556 Other asset-backed securities 441 443 U.S. agency residential mortgage-backed securities 4 3 Total due after 1 year through 5 years 451,670 453,798 3.17 % Due after 5 years through 10 years: U.S. agency securities 18,848 16,768 Other asset-backed securities 15,567 15,545 U.S. agency residential mortgage-backed securities 5,177 4,696 Mortgage-backed securities 2,036 1,634 Municipal securities 621 516 Total due after 5 years through 10 years 42,249 39,159 4.27 % Due after 10 years: U.S. agency residential mortgage-backed securities 258,387 206,538 U.S. agency securities 65,603 49,744 Mortgage-backed securities 39,352 32,959 Other asset-backed securities 12,209 11,476 Municipal securities 2,641 1,765 Total due after 10 years 378,192 302,482 2.80 % Total securities available for sale $ 872,341 $ 795,669 3.07 % (1) The weighted-average yield is computed using the amortized cost at September 30, 2023. There were no sales of AFS securities during the third quarters and first nine months of 2023 and 2022. |
Loans and Leases Held for Inves
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses | Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses LendingClub records certain loans and leases held for investment (HFI) at amortized cost. Other HFI and all held for sale (HFS) loans are recorded at fair value with the Company’s election of the fair value option. Net a ccrued interest receivable is excluded from the amortized cost basis of loans and leases HFI and is reported within “Other assets” on the Balance Sheet . Net accrued interest receivable related to loans and leases HFI at amortized cost was $34.3 million and $27.9 million as of September 30, 2023 and December 31, 2022, respectively . Loans and Leases Held for Investment at Amortized Cost The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable: September 30, 2023 December 31, 2022 Unsecured personal $ 4,094,748 $ 3,866,373 Residential mortgages 186,510 199,601 Secured consumer 254,105 194,634 Total consumer loans held for investment 4,535,363 4,260,608 Equipment finance (1) 125,289 160,319 Commercial real estate 373,246 373,501 Commercial and industrial (2) 203,379 238,726 Total commercial loans and leases held for investment 701,914 772,546 Total loans and leases held for investment 5,237,277 5,033,154 Allowance for loan and lease losses (350,495) (327,852) Loans and leases held for investment, net (3) $ 4,886,782 $ 4,705,302 (1) Comprised of sales-type leases for equipment. See “ Note 17. Leases ” for additional information. (2) Includes $7.6 million and $67.0 million of pledged loans under the Paycheck Protection Program (PPP) as of September 30, 2023 and December 31, 2022, respectively. (3) As of September 30, 2023 and December 31, 2022, the Company had $4.0 billion and $283.6 million in loans pledged as collateral under the Federal Reserve Bank (FRB) Discount Window, respectively. In addition, as of September 30, 2023 and December 31, 2022 , the Company had $511.2 million and $156.2 million in loans pledged to the Federal Home Loan Bank ( FHLB) of Des Moines, respectively. September 30, 2023 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 4,535,363 $ 336,288 $ 4,199,075 7.4 % Total commercial loans and leases held for investment 701,914 14,207 687,707 2.0 % Total loans and leases held for investment $ 5,237,277 $ 350,495 $ 4,886,782 6.7 % December 31, 2022 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 4,260,608 $ 312,489 $ 3,948,119 7.3 % Total commercial loans and leases held for investment 772,546 15,363 757,183 2.0 % Total loans and leases held for investment $ 5,033,154 $ 327,852 $ 4,705,302 6.5 % (1) Calculated as the ratio of allowance for loan and lease losses (ALLL) to loans and leases HFI at amortized cost. The activity in the ACL by portfolio segment was as follows: Three Months Ended September 30, 2023 2022 Consumer Commercial Total Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ 341,161 $ 14,002 $ 355,163 $ 228,184 $ 15,076 $ 243,260 Credit loss expense for loans and leases held for investment 63,733 394 64,127 81,935 664 82,599 Charge-offs (1) (73,644) (534) (74,178) (22,944) (784) (23,728) Recoveries 5,038 345 5,383 963 107 1,070 Allowance for loan and lease losses, end of period $ 336,288 $ 14,207 $ 350,495 $ 288,138 $ 15,063 $ 303,201 Reserve for unfunded lending commitments, beginning of period $ — $ 2,017 $ 2,017 $ 136 $ 1,889 $ 2,025 Credit loss expense for unfunded lending commitments — 352 352 (78) 218 140 Reserve for unfunded lending commitments, end of period (2) $ — $ 2,369 $ 2,369 $ 58 $ 2,107 $ 2,165 Nine Months Ended September 30, 2023 2022 Consumer Commercial Total Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ 312,489 $ 15,363 $ 327,852 $ 128,812 $ 15,577 $ 144,389 Credit loss expense for loans and leases held for investment 201,291 (124) 201,167 203,967 913 204,880 Charge-offs (1) (189,201) (1,809) (191,010) (46,668) (2,001) (48,669) Recoveries 11,709 777 12,486 2,027 574 2,601 Allowance for loan and lease losses, end of period $ 336,288 $ 14,207 $ 350,495 $ 288,138 $ 15,063 $ 303,201 Reserve for unfunded lending commitments, beginning of period $ 18 $ 1,860 $ 1,878 $ — $ 1,231 $ 1,231 Credit loss expense for unfunded lending commitments (18) 509 491 58 876 934 Reserve for unfunded lending commitments, end of period (2) $ — $ 2,369 $ 2,369 $ 58 $ 2,107 $ 2,165 (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 $89.5 million and $144.0 million of unfunded commitments, associated primarily with the commercial loan portfolio, as of September 30, 2023 and 2022, respectively. The following table presents year-to-date gross charge-offs by origination year for the period presented: Nine Months Ended September 30, 2023 Gross Charge-Offs by Origination Year 2023 2022 2021 2020 2019 Prior Total Unsecured personal $ 7,730 $ 106,835 $ 72,330 $ — $ — $ — $ 186,895 Residential mortgages — — — — — — — Secured consumer 93 1,668 545 — — — 2,306 Total consumer loans held for investment 7,823 108,503 72,875 — — — 189,201 Equipment finance — — — — — — — Commercial real estate — — — — — — — Commercial and industrial — — 1,369 — 318 122 1,809 Total commercial loans and leases held for investment — — 1,369 — 318 122 1,809 Total loans and leases held for investment $ 7,823 $ 108,503 $ 74,244 $ — $ 318 $ 122 $ 191,010 The Company has programs to modify loans for borrowers experiencing financial difficulty. Such modifications primarily include principal forgiveness, term extensions and/or interest rate reductions. Given that unsecured personal loans typically charge-off within a few months following modification, the total amortized cost balances are not significant for the period presented. 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, 2023 Term Loans and Leases by Origination Year 2023 2022 2021 2020 2019 Prior Total Unsecured personal Current $ 1,500,780 $ 1,954,955 $ 552,491 $ — $ — $ — $ 4,008,226 30-59 days past due 6,728 18,780 7,968 — — — 33,476 60-89 days past due 4,159 15,830 6,679 — — — 26,668 90 or more days past due 4,409 16,987 8,002 — — — 29,398 Total unsecured personal (1) 1,516,076 2,006,552 575,140 — — — 4,097,768 Residential mortgages Current — 48,934 56,128 30,204 20,403 30,678 186,347 30-59 days past due — — — — — — — 60-89 days past due — — — — — — — 90 or more days past due — — — — — 163 163 Total residential mortgages — 48,934 56,128 30,204 20,403 30,841 186,510 Secured consumer Current 114,186 109,327 25,434 — 2,481 — 251,428 30-59 days past due 199 1,188 291 — — — 1,678 60-89 days past due 45 484 261 — — — 790 90 or more days past due — 149 60 — — — 209 Total secured consumer 114,430 111,148 26,046 — 2,481 — 254,105 Total consumer loans held for investment $ 1,630,506 $ 2,166,634 $ 657,314 $ 30,204 $ 22,884 $ 30,841 $ 4,538,383 (1) Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of September 30, 2023, the basis adjustment totaled $3.0 million and represents a reduction to the amortized cost of the hedged loans. See “ Note 8. Derivative Instruments and Hedging Activities ” for additional information. December 31, 2022 Term Loans and Leases by Origination Year 2022 2021 2020 2019 2018 Prior Total Unsecured personal Current $ 2,835,460 $ 977,224 $ — $ — $ — $ — $ 3,812,684 30-59 days past due 11,149 9,867 — — — — 21,016 60-89 days past due 7,785 8,633 — — — — 16,418 90 or more days past due 6,813 9,442 — — — — 16,255 Total unsecured personal 2,861,207 1,005,166 — — — — 3,866,373 Residential mortgages Current 49,721 58,353 31,465 21,683 4,546 33,248 199,016 30-59 days past due — — — — — — — 60-89 days past due — — — — — 254 254 90 or more days past due — — — — — 331 331 Total residential mortgages 49,721 58,353 31,465 21,683 4,546 33,833 199,601 Secured consumer Current 151,725 38,076 — 2,543 — — 192,344 30-59 days past due 1,017 703 — — — — 1,720 60-89 days past due 235 147 — — — — 382 90 or more days past due 116 72 — — — — 188 Total secured consumer 153,093 38,998 — 2,543 — — 194,634 Total consumer loans held for investment $ 3,064,021 $ 1,102,517 $ 31,465 $ 24,226 $ 4,546 $ 33,833 $ 4,260,608 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 deserve 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, 2023 Term Loans and Leases by Origination Year 2023 2022 2021 2020 2019 Prior Total Guaranteed Amount (1) Equipment finance Pass $ 3,266 $ 36,438 $ 29,017 $ 9,088 $ 8,963 $ 8,797 $ 95,569 $ — Special mention — 15,059 2,435 6,085 2,872 — 26,451 — Substandard — — — 536 — 2,733 3,269 — Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 3,266 51,497 31,452 15,709 11,835 11,530 125,289 — Commercial real estate Pass 39,237 94,645 35,078 43,382 52,066 76,254 340,662 33,681 Special mention — — — — — 9,362 9,362 — Substandard — 3,641 6,738 — 221 10,571 21,171 8,515 Doubtful — — — — — — — — Loss — — 1,515 — — 536 2,051 1,471 Total commercial real estate 39,237 98,286 43,331 43,382 52,287 96,723 373,246 43,667 Commercial and industrial Pass 35,793 64,912 42,901 10,287 9,136 11,054 174,083 107,266 Special mention — 10,734 1,252 1,297 115 385 13,783 9,469 Substandard — 1,102 5,133 787 3,691 3,253 13,966 7,986 Doubtful — — — — — 286 286 216 Loss — — — — — 1,261 1,261 1,229 Total commercial and industrial 35,793 76,748 49,286 12,371 12,942 16,239 203,379 126,166 Total commercial loans and leases held for investment $ 78,296 $ 226,531 $ 124,069 $ 71,462 $ 77,064 $ 124,492 $ 701,914 $ 169,833 (1) Represents loan balances guaranteed by the Small Business Association (SBA). December 31, 2022 Term Loans and Leases by Origination Year 2022 2021 2020 2019 2018 Prior Total Guaranteed Amount (1) Equipment finance Pass $ 59,227 $ 38,218 $ 25,014 $ 15,785 $ 11,880 $ 3,444 $ 153,568 $ — Special mention — 2,094 — 3,759 — — 5,853 — Substandard — — 859 — 39 — 898 — Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 59,227 40,312 25,873 19,544 11,919 3,444 160,319 — Commercial real estate Pass 100,602 53,445 47,497 52,834 35,992 60,976 351,346 40,693 Special mention — — 8,415 260 1,237 405 10,317 — Substandard — — — 643 2,404 8,215 11,262 — Doubtful — — — — — — — — Loss — — — — — 576 576 — Total commercial real estate 100,602 53,445 55,912 53,737 39,633 70,172 373,501 40,693 Commercial and industrial Pass 61,076 99,264 24,726 13,866 5,174 10,831 214,937 141,858 Special mention — — — 483 163 455 1,101 44 Substandard — 9,361 4,529 3,623 797 2,820 21,130 5,716 Doubtful — — — — — 286 286 216 Loss — — — — 1 1,271 1,272 1,229 Total commercial and industrial 61,076 108,625 29,255 17,972 6,135 15,663 238,726 149,063 Total commercial loans and leases held for investment $ 220,905 $ 202,382 $ 111,040 $ 91,253 $ 57,687 $ 89,279 $ 772,546 $ 189,756 (1) Represents loan balances guaranteed by the SBA. The following tables present an analysis of the past due loans and leases HFI within the commercial portfolio segment: September 30, 2023 30-59 60-89 90 or More Total Equipment finance $ — $ 3,150 $ — $ 3,150 Commercial real estate 4,493 434 1,618 6,545 Commercial and industrial (1) 1,514 29 1,515 3,058 Total commercial loans and leases held for investment $ 6,007 $ 3,613 $ 3,133 $ 12,753 December 31, 2022 30-59 60-89 90 or More Total Equipment finance $ 3,172 $ — $ 859 $ 4,031 Commercial real estate — 102 — 102 Commercial and industrial (1) — — 1,643 1,643 Total commercial loans and leases held for investment $ 3,172 $ 102 $ 2,502 $ 5,776 (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, 2023 December 31, 2022 Nonaccrual (1) Nonaccrual with no related ACL (2) Nonaccrual (1) Nonaccrual with no related ACL (2) Unsecured personal $ 29,398 $ — $ 16,255 $ — Residential mortgages 316 316 331 331 Secured consumer 209 — 188 — Total nonaccrual consumer loans held for investment 29,923 316 16,774 331 Equipment finance 2,733 — 898 39 Commercial real estate 10,113 2,431 1,018 1,018 Commercial and industrial 7,230 1,892 16,137 1,229 Total nonaccrual commercial loans and leases held for investment (3) 20,076 4,323 18,053 2,286 Total nonaccrual loans and leases held for investment $ 49,999 $ 4,639 $ 34,827 $ 2,617 (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, 2023 and December 31, 2022. (2) Subset of total nonaccrual loans and leases. (3) Includes $12.7 million and $4.9 million in loan balances guaranteed by the SBA as of September 30, 2023 and December 31, 2022, respectively. September 30, 2023 December 31, 2022 Nonaccrual Nonaccrual Ratios (1) Nonaccrual Nonaccrual Ratios (1) Total nonaccrual consumer loans held for investment $ 29,923 0.7 % $ 16,774 0.4 % Total nonaccrual commercial loans and leases held for investment 20,076 2.9 % 18,053 2.3 % Total nonaccrual loans and leases held for investment $ 49,999 1.0 % $ 34,827 0.7 % (1) Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI at amortized cost. Collateral-Dependent Assets |
Securitizations and Variable In
Securitizations and Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Securitizations and Variable Interest Entities | Securitizations and Variable Interest Entities VIE Assets and Liabilities The following table presents the classifications of assets and liabilities on the Company’s Balance Sheet for its transactions with consolidated and unconsolidated VIEs. The Company’s transactions with VIEs include Structured Program transactions. The Company has also various forms of involvement with VIEs, including servicing loans and holding senior asset-backed securities or subordinated interests in the VIEs. Additionally, the assets and liabilities in the table below exclude intercompany balances that were eliminated in consolidation. September 30, 2023 December 31, 2022 Consolidated Unconsolidated Total Consolidated Unconsolidated Total Assets Restricted cash $ 3,813 $ — $ 3,813 $ 8,048 $ — $ 8,048 Securities available for sale at fair value — 443,460 443,460 — 17,717 17,717 Loans held for investment at fair value 1,095 — 1,095 3,994 — 3,994 Retail and certificate loans held for investment at fair value 637 — 637 1,946 — 1,946 Other assets 19 17,161 17,180 206 10,464 10,670 Total assets $ 5,564 $ 460,621 $ 466,185 $ 14,194 $ 28,181 $ 42,375 Liabilities Borrowings $ 3,329 $ — $ 3,329 $ 8,085 $ — $ 8,085 Retail notes, certificates and secured borrowings at fair value 637 — 637 1,946 — 1,946 Other liabilities 5 980 985 29 — 29 Total liabilities 3,971 980 4,951 10,060 — 10,060 Total net assets (maximum loss exposure) $ 1,593 $ 459,641 $ 461,234 $ 4,134 $ 28,181 $ 32,315 Maximum loss exposure 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. Unconsolidated VIEs The following table summarizes activity related to unconsolidated VIEs where the transfers were accounted for as a sale on the Company’s financial statements: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Fair value of consideration received: Cash $ 40,994 $ — $ 59,045 $ 5,320 Asset-backed securities retained 301,602 — 454,831 2,180 Other assets (liabilities) 3,790 — 6,089 (3,794) Total consideration 346,386 — 519,965 3,706 Deconsolidation of debt — — — 36,072 Fair value of loans sold (343,142) — (514,701) (39,519) Gain on sales of loans (1) $ 3,244 $ — $ 5,264 $ 259 Cash proceeds from continuing involvement: Servicing and other administrative fees $ 1,234 $ 1,782 $ 3,110 $ 7,294 Interest received on asset-backed securities retained $ 5,142 $ 1,294 $ 8,736 $ 6,373 (1) Consists primarily of servicing assets recognized at the time of sale, less any transaction costs, and excludes origination fees and fair value adjustments recognized prior to the sale. Prior period amounts have been reclassified to conform to the current period presentation. Beginning in the second quarter of 2023, the Company resumed its sponsoring of Structured Program transactions in which it retains the senior securities at a contractual interest rate, in addition to the amount required pursuant to the U.S. Risk Retention Rules, and sells the residual certificates. See “ Note 4. Securities Available for Sale ” for the securities retained in the Company’s investment portfolio related to such transactions. Holders of the senior securities issued by the unconsolidated VIEs have rights to their contractual cash flows prior to those that hold subordinated interests. There is no direct recourse to the Company’s assets, and holders of the securities can look only to those assets of the VIEs that issued their securities for payment. The beneficial interests are subject principally to the credit and prepayment risk stemming from the underlying unsecured personal loans. As of September 30, 2023, the aggregate unpaid principal balance held by unconsolidated VIEs was $678.5 million, of which $7.7 million was attributable to off-balance sheet loans that were 31 days or more past due. As of December 31, 2022, the aggregate unpaid principal balance held by unconsolidated VIEs was $433.5 million, of which $14.8 million was attributable to off-balance sheet loans that were 31 days or more past due. For such loans, the Company would only experience a loss if it was required to repurchase a loan due to a breach in representations and warranties associated with its loan sale or servicing contracts. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 362,789 $ 362,789 Loans held for investment at fair value — — 326,299 326,299 Retail and certificate loans held for investment at fair value — — 18,118 18,118 Securities available for sale: Senior asset-backed securities related to Structured Program transactions — — 412,397 412,397 U.S. agency residential mortgage-backed securities — 211,237 — 211,237 U.S. agency securities — 75,079 — 75,079 Mortgage-backed securities — 36,149 — 36,149 Other asset-backed securities related to Structured Program transactions — — 31,062 31,062 Other asset-backed securities — 27,464 — 27,464 Municipal securities — 2,281 — 2,281 Total securities available for sale — 352,210 443,459 795,669 Servicing assets — — 81,760 81,760 Other assets — 8,965 — 8,965 Total assets $ — $ 361,175 $ 1,232,425 $ 1,593,600 Liabilities: Borrowings $ — $ — $ 3,329 $ 3,329 Retail notes, certificates and secured borrowings — — 18,118 18,118 Other liabilities — 5,482 4,614 10,096 Total liabilities $ — $ 5,482 $ 26,061 $ 31,543 December 31, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 110,400 $ 110,400 Loans held for investment at fair value — — 925,938 925,938 Retail and certificate loans held for investment at fair value — — 55,425 55,425 Securities available for sale: U.S. agency residential mortgage-backed securities — 214,427 — 214,427 U.S. agency securities — 74,394 — 74,394 Mortgaged-backed securities — 22,518 — 22,518 Other asset-backed securities — 14,203 — 14,203 Asset-backed securities related to Structured Program transactions — 5,248 12,469 17,717 Municipal securities — 2,443 — 2,443 Total securities available for sale — 333,233 12,469 345,702 Servicing assets — — 84,308 84,308 Other assets — — 5,099 5,099 Total assets $ — $ 333,233 $ 1,193,639 $ 1,526,872 Liabilities: Borrowings $ — $ — $ 8,085 $ 8,085 Retail notes, certificates and secured borrowings — — 55,425 55,425 Other liabilities — — 8,583 8,583 Total liabilities $ — $ — $ 72,093 $ 72,093 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 2023 or 2022. Loans Held for Sale at Fair Value In the third quarter of 2023, as part of its new extended seasoning program, the Company began accumulating loans into the HFS portfolio to meet investor demand for seasoned loans. Prior year comparative disclosures for the tables below are not presented as the comparability between periods would not be meaningful given that the current period relates primarily to the new extended seasoning program whereas in previous periods the majority of HFS loans were sold shortly after origination and at committed prices. As such, the Company was generally not exposed to fluctuations in the fair value of HFS loans in the prior period. Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 loans HFS at fair value: September 30, 2023 Minimum Maximum Weighted- Average Discount rates 8.8 % 11.2 % 9.6 % Net cumulative expected loss rates (1) 3.5 % 23.4 % 10.9 % Cumulative expected prepayment rates (1) 27.7 % 37.3 % 32.5 % (1) Expressed as a percentage of the acquired principal balance of the loan. Significant Recurring Level 3 Fair Value Input Sensitivity The sensitivity of loans HFS at fair value to adverse changes in key assumptions are as follows: September 30, 2023 Loans held for sale at fair value $ 362,789 Expected weighted-average life (in years) 1.5 Discount rates: 100 basis point increase $ (4,628) 200 basis point increase $ (9,160) Expected credit loss rates on underlying loans: 10% increase $ (4,292) 20% increase $ (8,530) Expected prepayment rates: 10% increase $ (660) 20% increase $ (1,244) Fair Value Reconciliation The following table presents additional information about Level 3 loans HFS on a recurring basis: Three Months Ended Nine Months Ended 2023 2023 Fair value at beginning of period $ 250,361 $ 110,400 Originations and purchases 1,107,771 3,584,918 Sales (950,451) (3,435,949) Principal payments (22,372) (33,972) Transfers 3,299 195,106 Fair value adjustments recorded in earnings (25,819) (57,714) Fair value at end of period $ 362,789 $ 362,789 Loans Held for Investment at Fair Value Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 loans HFI at fair value: September 30, 2023 December 31, 2022 Minimum Maximum Weighted- Average Minimum Maximum Weighted- Average Discount rates 8.5 % 16.5 % 12.8 % 8.8 % 17.1 % 12.7 % Net cumulative expected loss rates (1) 2.5 % 11.0 % 7.1 % 2.1 % 9.8 % 5.7 % Cumulative expected prepayment rates (1) 20.6 % 28.5 % 25.2 % 26.2 % 35.3 % 30.8 % (1) Expressed as a percentage of the acquired principal balance of the loan. Significant Recurring Level 3 Fair Value Input Sensitivity The sensitivity of loans HFI at fair value to adverse changes in key assumptions are as follows: September 30, 2023 December 31, 2022 Loans held for investment at fair value $ 326,299 $ 925,938 Expected weighted-average life (in years) 0.9 0.9 Discount rates: 100 basis point increase $ (2,633) $ (7,471) 200 basis point increase $ (5,226) $ (14,830) Expected credit loss rates on underlying loans: 10% increase $ (2,028) $ (5,574) 20% increase $ (3,985) $ (11,307) Expected prepayment rates: 10% increase $ (1,519) $ (4,311) 20% increase $ (2,636) $ (7,480) Fair Value Reconciliation The following table presents additional information about Level 3 loans HFI at fair value on a recurring basis: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Fair value at beginning of period $ 404,119 $ 20,583 $ 925,938 $ 21,240 Purchases 112 136 4,149 150 Principal payments (76,495) (5,913) (419,233) (17,660) Transfers (3,472) — (195,106) 11,966 Interest income accretion and fair value adjustments recorded in earnings 2,035 251 10,551 (639) Fair value at end of period $ 326,299 $ 15,057 $ 326,299 $ 15,057 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, 2023 and December 31, 2022, 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. Asset-Backed Securities Related to Structured Program Transactions Prior year comparative disclosures related to significant unobservable inputs, fair value sensitivities and fair value rollforwards for asset-backed securities related to Structured Program transactions are not presented below as the comparability between periods would not be meaningful given that the current period consists primarily of a new type of Structured Program transaction that the Company began entering into in the second quarter of 2023. See “ Note 6. Securitizations and Variable Interest Entities ” for more information. Senior Asset-Backed Securities Related to Structured Program Transactions As of September 30, 2023, the fair value of the senior asset-backed securities related to Structured Program transactions was $412.4 million with an expected weighted-average life of 1.5 years. Discount rates were the significant unobservable input used to measure the fair value of this Level 3 asset. The minimum, maximum and weighted-average discount rates assumptions were 7.7% as of September 30, 2023. A hypothetical 100 and 200 basis point increase in discount rates would decrease the fair value by $6.2 million and $12.3 million, respectively. The following table presents additional information about Level 3 senior asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis: Three Months Ended Nine Months Ended 2023 2023 Fair value at beginning of period $ 142,785 $ — Additions 284,704 429,384 Cash received (14,244) (15,534) Change in unrealized loss (848) (1,453) Fair value at end of period $ 412,397 $ 412,397 Other Asset-Backed Securities Related to Structured Program Transactions Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for other asset-backed securities related to Structured Program transactions: September 30, 2023 Minimum Maximum Weighted- Discount rates 8.8 % 11.2 % 9.5 % Net cumulative expected loss rates (1) 3.6 % 23.0 % 9.3 % Cumulative expected prepayment rates (1) 27.7 % 37.3 % 32.7 % (1) Expressed as a percentage of the outstanding collateral balance. Significant Recurring Fair Value Input Sensitivity The following table presents adverse changes to the fair value sensitivity of Level 3 other asset-backed securities related to Structured Program transactions to changes in key assumptions: September 30, 2023 Fair value of interests held $ 31,062 Expected weighted-average life (in years) 1.5 Discount rates 100 basis point increase $ (369) 200 basis point increase $ (735) Expected loss rates 10% increase $ (523) 20% increase $ (1,058) Expected prepayment rates 10% increase $ (190) 20% increase $ (425) Fair Value Reconciliation The following table presents additional information about Level 3 other asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis: Three Months Ended September 30, Nine Months Ended September 30, 2023 2023 Fair value at beginning of period $ 16,980 $ 12,469 Additions 17,190 25,970 Cash received (2,812) (7,081) Change in unrealized loss (296) (296) Fair value at end of period $ 31,062 $ 31,062 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, 2023 December 31, 2022 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 8.7 % 17.3 % 11.6 % 7.5 % 16.4 % 10.1 % Net cumulative expected loss rates (1) 3.5 % 37.7 % 15.6 % 2.1 % 36.7 % 15.6 % Cumulative expected prepayment rates (1) 18.5 % 44.6 % 32.7 % 15.8 % 47.2 % 35.9 % 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, December 31, 2022 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Servicing rate increase by 0.10% $ (8,759) $ (10,505) Servicing rate decrease by 0.10% $ 8,759 $ 10,505 The following table presents the fair value sensitivity of servicing assets to adverse changes in key assumptions: September 30, December 31, 2022 Fair value of servicing assets $ 81,760 $ 84,308 Discount rates 100 basis point increase $ (695) $ (726) 200 basis point increase $ (1,391) $ (1,451) Expected loss rates 10% increase $ (1,026) $ (1,037) 20% increase $ (2,051) $ (2,074) Expected prepayment rates 10% increase $ (1,720) $ (1,994) 20% increase $ (3,440) $ (3,989) 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 2023 2022 2023 2022 Fair value at beginning of period $ 85,387 $ 79,427 $ 84,308 $ 67,726 Issuances (1) 11,568 22,319 39,269 73,774 Change in fair value, included in Marketplace revenue (12,100) (14,689) (41,750) (52,702) Other net changes (3,095) (539) (67) (2,280) Fair value at end of period $ 81,760 $ 86,518 $ 81,760 $ 86,518 (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, 2023 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans and leases held for investment, net $ 4,886,782 $ — $ — $ 5,060,962 $ 5,060,962 Other assets 39,727 — 38,885 1,118 40,003 Total assets $ 4,926,509 $ — $ 38,885 $ 5,062,080 $ 5,100,965 Liabilities: Deposits (1) $ 1,169,593 $ — $ — $ 1,164,915 $ 1,164,915 Borrowings 7,388 — 27 7,361 7,388 Other liabilities 62,572 — 37,270 25,302 62,572 Total liabilities $ 1,239,553 $ — $ 37,297 $ 1,197,578 $ 1,234,875 December 31, 2022 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans and leases held for investment, net $ 4,705,302 $ — $ — $ 4,941,825 $ 4,941,825 Other assets 36,646 — 35,300 1,397 36,697 Total assets $ 4,741,948 $ — $ 35,300 $ 4,943,222 $ 4,978,522 Liabilities: Deposits (1) $ 860,808 $ — $ — $ 860,808 $ 860,808 Borrowings 66,773 — 2,619 64,154 66,773 Other liabilities 62,247 — 30,311 31,936 62,247 Total liabilities $ 989,828 $ — $ 32,930 $ 956,898 $ 989,828 (1) Excludes deposit liabilities with no defined or contractual maturities. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Credit Derivatives Beginning in the second quarter of 2023, the Company entered into credit support agreements related to loan sales, whereby it is obligated to make payments to a limited number of strategic investors approximately 18 months after sale if credit losses exceed certain initial agreed-upon thresholds, subject to a maximum dollar amount. Accordingly, these are accounted for as credit derivative liabilities, measured at fair value, and recorded in “Other liabilities” on the Balance Sheet. The initial fair value of the derivative liabilities is recorded in “Gain on sales of loans” with changes in the fair value recorded in “Net fair value adjustments,” both within “Marketplace revenue” on the Income Statement. As of September 30, 2023, the total notional amount, or maximum dollar exposure, of the credit derivative liabilities was $3.8 million, with a fair value of $3.3 million which was based on the combined impact of both the quantitative and qualitative credit loss forecast. For the three and nine months ended September 30, 2023, the Company recognized a loss of $2.3 million and $3.3 million in earnings, respectively. Hedging The Company is exposed to changes in the fair value of its fixed-rate loans due to changes in benchmark interest rates. Beginning in the third quarter of 2023, the Company entered into interest rate swaps to manage its exposure to changes in fair value of these loans attributable to changes in the Secured Overnight Financing Rate (SOFR). The interest rate swaps qualify as fair value hedges and involve the payment of fixed-rate amounts to a counterparty in exchange for the receipt of variable-rate payments over the life of the agreements, ranging from approximately one The table below presents the notional and gross fair value amounts of the Company’s derivatives used for hedging as of September 30, 2023: Notional Gross Derivative Asset Fair Value (1) Derivatives used for hedging: Interest rate swaps $ 1,500,000 $ 3,483 (1) Recorded in “Other assets” on the Balance Sheet. The following table summarizes the gains (losses) recognized on the Company’s fair value hedges for both the three and nine months ended September 30, 2023: Gains (losses) recognized on: Hedged item $ (3,020) Derivatives used for hedging 3,483 Interest settlement on derivative (1) 883 Total gains on fair value hedges (2) $ 1,346 (1) Includes accrued interest receivable and accrued interest payable. (2) Recorded in “Interest and fees on loans held for investment at amortized cost” on the Income Statement. The following table presents the cumulative basis adjustments for fair value hedges as of September 30, 2023: Balance Sheet Line Item Carrying Amount of Closed Portfolio (1) Cumulative Fair Value Adjustment to Hedged Item Loans and leases held for investment at amortized cost $ 3,586,394 $ (3,020) (1) Represents the amortized cost of the total closed portfolio of loans designated in a portfolio method hedge relationship in which the hedged item is a stated layer that is expected to be remaining at the end of the hedging relationship. At September 30, 2023, the amortized cost of loans designated as the hedged item in the portfolio layer hedging relationship was $1.5 billion. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 December 31, 2022 Software (1) $ 206,311 $ 174,360 Leasehold improvements 31,249 31,214 Computer equipment 23,753 27,410 Furniture and fixtures 6,088 6,088 Total property, equipment and software 267,401 239,072 Accumulated depreciation and amortization (107,633) (102,599) Total property, equipment and software, net $ 159,768 $ 136,473 (1) Includes $71.7 million and $43.7 million of development in progress for internally-developed software and $4.7 million and $3.0 million of development in progress to customize purchased software as of September 30, 2023 and December 31, 2022, respectively. Depreciation and amortization expense on property, equipment and software was $10.3 million and $32.1 million for the third quarter and first nine months of 2023, 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and December 31, 2022. The Company did not record any goodwill impairment expense for the third quarters and first nine months of 2023 and 2022. 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, 2023 December 31, 2022 Gross carrying value $ 54,500 $ 54,500 Accumulated amortization (41,349) (38,166) Net carrying value $ 13,151 $ 16,334 The customer relationship intangible assets are amortized on an accelerated basis from ten The expected future amortization expense for intangible assets as of September 30, 2023, is as follows: 2023 $ 1,015 2024 3,549 2025 2,901 2026 2,252 2027 1,603 Thereafter 1,831 Total $ 13,151 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: September 30, December 31, Deferred tax asset, net (1) $ 171,766 $ 173,687 Servicing assets (2) 82,602 85,654 Operating lease assets 53,510 63,872 Nonmarketable equity investments 46,812 38,320 Intangible assets, net (3) 13,151 16,334 Other 129,111 122,439 Total other assets $ 496,952 $ 500,306 (1) See “ Note 16. Income Taxes ” for additional detail. (2) Loans underlying servicing assets had a total outstanding principal balance of $9.7 billion and $11.0 billion as of September 30, 2023 and December 31, 2022, respectively. (3) See “ Note 10. Goodwill and Intangible Assets ” for additional detail. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Deposits | Deposits Deposits consist of the following: September 30, December 31, Interest-bearing deposits: Savings and money market accounts 4,537,503 3,616,657 Certificates of deposit 1,169,593 860,808 Checking accounts 979,973 1,681,095 Total 6,687,069 6,158,560 Noninterest-bearing deposits 313,194 233,993 Total deposits $ 7,000,263 $ 6,392,553 Total certificates of deposit at September 30, 2023 are scheduled to mature as follows: 2023 $ 310,816 2024 833,003 2025 14,075 2026 1,252 2027 9,228 Thereafter 1,219 Total certificates of deposit $ 1,169,593 The following table presents the amount of certificates of deposit with denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand, segregated by time remaining until maturity, as of September 30, 2023: Three months or less Over 3 months through Over 6 months through Over Total Certificates of deposit $ 4,949 $ 5,117 $ 43,598 $ 3,674 $ 57,338 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Short-term Borrowings 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. The aggregate debt outstanding under the Company’s repurchase agreements was $27 thousand and $2.6 million at September 30, 2023 and December 31, 2022, respectively. In addition, the Company has available borrowing capacity with the FRB and FHLB of Des Moines totaling $3.8 billion and $605.5 million with pledged collateral totaling $4.9 billion and $754.0 million at September 30, 2023 and December 31, 2022, respectively. Long-term Debt The following table summarizes the Company’s long-term debt, as of the dates indicated: September 30, 2023 December 31, 2022 Advances from PPPLF (1) : Aggregate debt outstanding (fixed interest rate of 0.35%) $ 7,361 $ 64,154 Pledged collateral $ 7,560 $ 66,971 Retail notes, certificates and secured borrowings (2) : Aggregate debt outstanding $ 18,118 $ 55,425 Payable on Structured Program borrowings (3) : Aggregate debt outstanding $ 3,329 $ 8,085 Pledged collateral $ 4,828 $ 9,708 (1) Collateralized by SBA PPP loans originated by the Company. The maturity date of the PPPLF borrowings matches the maturity date of the pledged SBA PPP loans. When loans are forgiven by the SBA, the corresponding PPPLF advance is paid by the Company. (2) The Company does not assume principal or interest rate risk on loans that were funded by Retail Notes because loan balances, interest rates and maturities were matched and offset by an equal balance of notes with the exact same interest rates and maturities. As of December 31, 2020, LendingClub ceased offering and selling Retail Notes. The total balance of outstanding Retail Notes will continue to decline as underlying borrower payments are made. (3) Consists of certificate participations and securities of certain consolidated VIEs held by third-party investors and secured by “Loans held for investment at fair value” totaling $1.1 million and $4.0 million and “Restricted cash” of $3.7 million and $5.7 million as of September 30, 2023 and December 31, 2022, respectively. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities consist of the following: September 30, December 31, 2022 Operating lease liabilities $ 65,747 $ 77,291 Accounts payable and accrued expenses 54,179 98,173 Payable to investors (1) 37,270 30,311 Other 77,838 86,842 Total other liabilities $ 235,034 $ 292,617 (1) Represents principal and interest on loans collected by the Company and pending disbursement to investors. |
Employee Incentive Plans
Employee Incentive Plans | 9 Months Ended |
Sep. 30, 2023 | |
Postemployment Benefits [Abstract] | |
Employee Incentive Plans | Employee Incentive Plans The Company’s equity incentive plans provide for granting awards, including restricted stock units (RSUs), performance-based restricted stock units (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 2023 2022 2023 2022 RSUs and PBRSUs $ 16,855 $ 18,931 $ 49,292 $ 56,098 Stock options — 6 — 46 Stock-based compensation expense, gross 16,855 18,937 49,292 56,144 Less: Capitalized stock-based compensation expense 2,449 2,194 7,170 5,934 Stock-based compensation expense, net $ 14,406 $ 16,743 $ 42,122 $ 50,210 Restricted Stock Units The following table summarizes the activities for the Company’s RSUs: Number Weighted- Unvested at December 31, 2022 8,672,626 $ 12.94 Granted 6,533,732 $ 7.68 Vested (4,329,854) $ 11.63 Forfeited/expired (1,772,768) $ 12.42 Unvested at September 30, 2023 9,103,736 $ 9.89 During the first nine months of 2023, the Company granted 6,533,732 RSUs with an aggregate fair value of $50.2 million. As of September 30, 2023, there was $81.9 million of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 1.9 years, subject to any forfeitures. Performance-based Restricted Stock Units PBRSUs are restricted stock unit awards that are earned based upon the achievement of certain pre-established performance metrics over a pre-established performance period. The Company’s outstanding PBRSU awards each have a market-based performance metric with a three-year performance period, following which any earned portion is immediately vested. For these PBRSU awards, 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, 2022 1,754,898 $ 11.19 Granted 807,499 $ 7.15 Vested (870,766) $ 4.22 Forfeited/expired (104,084) $ 11.77 Unvested at September 30, 2023 1,587,547 $ 12.63 During the first nine months of 2023, the Company granted 807,499 PBRSUs with an aggregate fair value of $5.8 million. As of September 30, 2023, there was $7.9 million of unrecognized compensation cost related to unvested PBRSUs, which is expected to be recognized over a weighted-average period of approximately 1.6 years, subject to any forfeitures. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the third quarter and first nine months of 2023, the Company recorded an income tax expense of $3.3 million and $12.1 million, representing an effective tax rate of 39.9% and 29.7%, respectively. The third quarter effective tax rate differs from the statutory rate as it was favorably affected by recurring items such as tax credits and was unfavorably affected by nondeductible portions of executive compensation. Additionally, the effective tax rate was unfavorably impacted by the discrete tax impact recognized during the period related to stock-based compensation, which had a larger impact in the third quarter. 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. The following table summarizes the Company’s net deferred tax assets: September 30, December 31, 2022 Deferred tax assets, net of liabilities $ 219,329 $ 221,408 Valuation allowance (47,563) (47,721) Deferred tax assets, net of valuation allowance $ 171,766 $ 173,687 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
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 2023, interest earned on Equipment Finance was $2.0 million and $7.2 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 2022, interest earned on Equipment Finance was $2.5 million and $7.7 million, respectively. The components of Equipment Finance assets are as follows: September 30, December 31, 2022 Lease receivables $ 103,750 $ 137,969 Unguaranteed residual asset values 33,264 39,262 Unearned income (12,397) (17,786) Deferred fees 672 874 Total $ 125,289 $ 160,319 Future minimum lease payments based on maturity of the Company’s lessor arrangements as of September 30, 2023 were as follows: 2023 $ 15,167 2024 35,355 2025 27,288 2026 16,796 2027 7,447 Thereafter 5,538 Total lease payments $ 107,591 Discount effect (3,841) Present value of future minimum lease payments $ 103,750 Lessee Arrangements The Company has various operating leases, including with respect to its headquarters in San Francisco, California, and office spaces in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of September 30, 2023, the lease agreements have remaining lease terms ranging from approximately three months to eight years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of September 30, 2023, the Company pledged $0.4 million of cash and $1.1 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, 2023 December 31, 2022 Operating lease assets Other assets $ 53,510 $ 63,872 Operating lease liabilities Other liabilities $ 65,747 $ 77,291 Components of net lease costs were as follows: Three Months Ended Nine Months Ended Net Lease Costs Income Statement Classification 2023 2022 2023 2022 Operating lease costs Occupancy $ (3,114) $ (3,195) $ (9,376) $ (12,041) Sublease revenue Other non-interest income — — — 2,847 Net lease costs $ (3,114) $ (3,195) $ (9,376) $ (9,194) Supplemental cash flow information related to the Company’s operating leases was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Non-cash operating activity: Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities $ — $ — $ (4,664) $ — The Company’s future minimum undiscounted lease payments under operating leases as of September 30, 2023 were as follows: Operating Lease 2023 $ 3,220 2024 12,798 2025 13,129 2026 11,710 2027 10,987 Thereafter 27,238 Total lease payments $ 79,082 Discount effect (13,335) Present value of future minimum lease payments $ 65,747 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, 2023 Weighted-average remaining lease term (in years) 6.49 Weighted-average discount rate 5.40 % |
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 2023, interest earned on Equipment Finance was $2.0 million and $7.2 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 2022, interest earned on Equipment Finance was $2.5 million and $7.7 million, respectively. The components of Equipment Finance assets are as follows: September 30, December 31, 2022 Lease receivables $ 103,750 $ 137,969 Unguaranteed residual asset values 33,264 39,262 Unearned income (12,397) (17,786) Deferred fees 672 874 Total $ 125,289 $ 160,319 Future minimum lease payments based on maturity of the Company’s lessor arrangements as of September 30, 2023 were as follows: 2023 $ 15,167 2024 35,355 2025 27,288 2026 16,796 2027 7,447 Thereafter 5,538 Total lease payments $ 107,591 Discount effect (3,841) Present value of future minimum lease payments $ 103,750 Lessee Arrangements The Company has various operating leases, including with respect to its headquarters in San Francisco, California, and office spaces in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of September 30, 2023, the lease agreements have remaining lease terms ranging from approximately three months to eight years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of September 30, 2023, the Company pledged $0.4 million of cash and $1.1 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, 2023 December 31, 2022 Operating lease assets Other assets $ 53,510 $ 63,872 Operating lease liabilities Other liabilities $ 65,747 $ 77,291 Components of net lease costs were as follows: Three Months Ended Nine Months Ended Net Lease Costs Income Statement Classification 2023 2022 2023 2022 Operating lease costs Occupancy $ (3,114) $ (3,195) $ (9,376) $ (12,041) Sublease revenue Other non-interest income — — — 2,847 Net lease costs $ (3,114) $ (3,195) $ (9,376) $ (9,194) Supplemental cash flow information related to the Company’s operating leases was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Non-cash operating activity: Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities $ — $ — $ (4,664) $ — The Company’s future minimum undiscounted lease payments under operating leases as of September 30, 2023 were as follows: Operating Lease 2023 $ 3,220 2024 12,798 2025 13,129 2026 11,710 2027 10,987 Thereafter 27,238 Total lease payments $ 79,082 Discount effect (13,335) Present value of future minimum lease payments $ 65,747 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, 2023 Weighted-average remaining lease term (in years) 6.49 Weighted-average discount rate 5.40 % |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments For discussion regarding the Company’s operating lease commitments, see “ Note 17. Leases. ” Loan 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, 2023 and December 31, 2022, the contractual amount of unfunded loan commitments was $89.5 million and $138.0 million, respectively. See “ Note 5. Loans and Leases Held for Investment at Amortized Cost, 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, Licensing and Compliance with Applicable Laws The Company is and has been subject to periodic inquiries, exams 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 operating in compliance with applicable laws, including the requirements of its licenses and the regulatory framework applicable to its business. 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. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2023 | |
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 the Company’s and LC Bank’s regulatory capital amounts (in millions) and ratios: September 30, 2023 December 31, 2022 Required Minimum plus Required CCB for Non-Leverage Ratios Amount Ratio Amount Ratio LendingClub Corporation: CET1 capital (1) $ 1,078.7 16.9 % $ 1,005.8 15.8 % 7.0 % Tier 1 capital $ 1,078.7 16.9 % $ 1,005.8 15.8 % 8.5 % Total capital $ 1,161.7 18.2 % $ 1,088.1 17.1 % 10.5 % Tier 1 leverage $ 1,078.7 13.2 % $ 1,005.8 14.1 % 4.0 % Risk-weighted assets $ 6,388.6 N/A $ 6,360.7 N/A N/A Quarterly adjusted average assets $ 8,200.3 N/A $ 7,119.0 N/A N/A LendingClub Bank: CET1 capital (1) $ 949.7 15.1 % $ 852.2 13.8 % 7.0 % Tier 1 capital $ 949.7 15.1 % $ 852.2 13.8 % 8.5 % Total capital $ 1,031.2 16.5 % $ 932.4 15.1 % 10.5 % Tier 1 leverage $ 949.7 11.8 % $ 852.2 12.5 % 4.0 % Risk-weighted assets $ 6,268.6 N/A $ 6,194.0 N/A N/A Quarterly adjusted average assets $ 8,016.0 N/A $ 6,795.2 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, 2023 and December 31, 2022, 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, 2023 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 an Operating Agreement with 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 2023 or during 2022. 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 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, 2023 | |
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 2023 2022 2023 2022 Referral revenue $ 1,029 $ 3,144 $ 4,008 $ 10,860 Realized gains on sales of securities available for sale — — — 36 Other 1,929 4,256 5,341 13,843 Total other non-interest income $ 2,958 $ 7,400 $ 9,349 $ 24,739 Other non-interest expense consists of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Consumer credit services $ 2,930 $ 4,610 $ 10,377 $ 15,804 Other 10,146 10,496 35,724 30,727 Total other non-interest expense $ 13,076 $ 15,106 $ 46,101 $ 46,531 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company defines operating segments to be components of the Company for which discrete financial information is evaluated regularly by the Company’s Chief Executive Officer and Chief Financial Officer to allocate resources and evaluate financial performance. This information is reviewed according to the legal organizational structure of the Company’s operations with products and services presented separately for the parent bank holding company and its wholly-owned subsidiary, LC Bank. 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. All of the Company’s revenue is generated in the United States. The Company has experienced reductions in marketplace investor demand in connection with increases in interest rates and volatility in the macro economy. During the third quarter of 2023, no individual borrower or marketplace investor accounted for 10% or more of total net revenue. During the first nine months of 2023, one marketplace bank investor accounted for 12% of total net revenue. No other individual borrower or marketplace investor accounted for 10% or more of total net revenue for the first nine months of 2023. 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. 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 entered into prior to the Acquisition. 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, 2023 2022 2023 2022 2023 2022 2023 2022 Non-interest income: Marketplace revenue $ 37,439 $ 153,504 $ 12,320 $ 9,015 $ 11,127 $ 11,318 $ 60,886 $ 173,837 Other non-interest income 18,783 25,240 2,478 4,794 (18,303) (22,634) 2,958 7,400 Total non-interest income 56,222 178,744 14,798 13,809 (7,176) (11,316) 63,844 181,237 Interest income: Interest income 203,961 137,142 3,451 6,078 — — 207,412 143,220 Interest expense (69,517) (15,277) (890) (4,267) — — (70,407) (19,544) Net interest income 134,444 121,865 2,561 1,811 — — 137,005 123,676 Total net revenue 190,666 300,609 17,359 15,620 (7,176) (11,316) 200,849 304,913 Provision for credit losses (64,463) (82,739) (16) — — — (64,479) (82,739) Non-interest expense (122,142) (177,714) (13,069) (19,821) 7,176 11,316 (128,035) (186,219) Income (Loss) before income tax benefit (expense) 4,061 40,156 4,274 (4,201) — — 8,335 35,955 Income tax benefit (expense) (2,380) (9,440) (947) 16,683 — — (3,327) 7,243 Net income $ 1,681 $ 30,716 $ 3,327 $ 12,482 $ — $ — $ 5,008 $ 43,198 Capital expenditures $ 15,984 $ 17,301 $ — $ — $ — $ — $ 15,984 $ 17,301 Depreciation and amortization $ 7,579 $ 4,099 $ 3,671 $ 6,582 $ — $ — $ 11,250 $ 10,681 LendingClub LendingClub Intercompany Consolidated Total Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 2023 2022 2023 2022 Non-interest income: Marketplace revenue $ 172,133 $ 509,426 $ 33,200 $ 35,313 $ 33,970 $ 15,448 $ 239,303 $ 560,187 Other non-interest income 59,687 64,779 7,462 12,931 (57,800) (52,971) 9,349 24,739 Total non-interest income 231,820 574,205 40,662 48,244 (23,830) (37,523) 248,652 584,926 Interest income: Interest income 612,805 357,117 11,506 26,224 — — 624,311 383,341 Interest expense (189,959) (25,134) (3,991) (18,625) — — (193,950) (43,759) Net interest income 422,846 331,983 7,515 7,599 — — 430,361 339,582 Total net revenue 654,666 906,188 48,177 55,843 (23,830) (37,523) 679,013 924,508 Provision for credit losses (201,658) (205,814) — — — — (201,658) (205,814) Non-interest expense (413,088) (552,809) (47,164) (71,523) 23,830 37,523 (436,422) (586,809) Income (Loss) before income tax benefit (expense) 39,920 147,565 1,013 (15,680) — — 40,933 131,885 Income tax benefit (expense) (12,065) (39,113) (84) 120,274 — 53,048 (12,149) 134,209 Net income $ 27,855 $ 108,452 $ 929 $ 104,594 $ — $ 53,048 $ 28,784 $ 266,094 Capital expenditures $ 48,239 $ 54,659 $ — $ — $ — $ — $ 48,239 $ 54,659 Depreciation and amortization $ 21,546 $ 11,109 $ 13,696 $ 21,168 $ — $ — $ 35,242 $ 32,277 LendingClub Bank LendingClub Corporation Intercompany Consolidated Total September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Assets Total cash and cash equivalents $ 1,283,549 $ 1,020,874 $ 93,060 $ 56,475 $ (68,839) $ (20,319) $ 1,307,770 $ 1,057,030 Restricted cash — — 48,102 75,409 (5,615) (7,955) 42,487 67,454 Securities available for sale at fair value 790,542 329,287 5,127 16,415 — — 795,669 345,702 Loans held for sale at fair value 362,789 110,400 — — — — 362,789 110,400 Loans and leases held for investment, net 4,886,782 4,705,302 — — — — 4,886,782 4,705,302 Loans held for investment at fair value 316,622 906,711 9,677 19,227 — — 326,299 925,938 Retail and certificate loans held for investment at fair value — — 18,118 55,425 — — 18,118 55,425 Property, equipment and software, net 139,269 102,274 20,499 34,199 — — 159,768 136,473 Investment in subsidiary — — 813,436 755,319 (813,436) (755,319) — — Goodwill 75,717 75,717 — — — — 75,717 75,717 Other assets 352,072 339,341 162,490 173,851 (17,610) (12,886) 496,952 500,306 Total assets 8,207,342 7,589,906 1,170,509 1,186,320 (905,500) (796,479) 8,472,351 7,979,747 Liabilities and Equity Total deposits 7,074,717 6,420,827 — — (74,454) (28,274) 7,000,263 6,392,553 Borrowings 7,361 64,154 3,356 10,704 — — 10,717 74,858 Retail notes, certificates and secured borrowings at fair value — — 18,118 55,425 — — 18,118 55,425 Other liabilities 136,543 189,185 116,101 116,318 (17,610) (12,886) 235,034 292,617 Total liabilities 7,218,621 6,674,166 137,575 182,447 (92,064) (41,160) 7,264,132 6,815,453 Total equity 988,721 915,740 1,032,934 1,003,873 (813,436) (755,319) 1,208,219 1,164,294 Total liabilities and equity $ 8,207,342 $ 7,589,906 $ 1,170,509 $ 1,186,320 $ (905,500) $ (796,479) $ 8,472,351 $ 7,979,747 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company recognizes all derivative instruments at fair value, on a gross basis, as either “Other assets” or “Other liabilities” on the Balance Sheet. Changes in fair value of the derivative instruments are recognized in current period earnings. For derivative instruments that qualify as hedges, the Company designates the hedging instrument based on the exposure being hedged. The Company’s existing hedging instruments are designated as fair value hedges under the portfolio layer method, whereby changes in the fair value of the hedging instrument are substantially offset by changes in the fair value of the hedged item, both of which are recognized in “Interest and fees on loans held for investment at amortized cost” on the Income Statement. Interest payments made and/or received related to these derivative instruments are presented within the “Operating activities” section on the Statements of Cash Flows. To qualify for hedge accounting, the derivatives and related hedged items must be designated as a hedge at inception of the hedge relationship. In addition, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. For accounting hedge relationships, the Company formally assesses, both at the inception of the hedge and on an ongoing basis, if the derivatives are highly effective in offsetting designated changes in the fair value of the hedged item. The Company assesses effectiveness using a statistical regression analysis. Effectiveness may be assessed qualitatively where the critical terms of the derivative and hedged item match. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards The Company adopted the following new accounting standards during the nine-month period ended September 30, 2023: The FASB issued Accounting Standards Update (ASU) 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the accounting guidance on troubled debt restructurings (TDRs) for creditors that have adopted the Current Expected Credit Losses (CECL) model and adds a requirement to disclose current period gross charge-offs by year of origination. The Company adopted ASU 2022-02 as of January 1, 2023, on a prospective basis. The ASU updates the requirements related to accounting for credit losses under Accounting Standards Codification 326, including removing anticipatory TDRs and requiring the use of the post-modified effective interest rate when a discounted cash flow method is used in the CECL calculation. The ASU updates disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which, if certain criteria are met, provide optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform. The provisions of this topic are elective and may be applied prospectively as of the beginning of the reporting period when the election is made through December 31, 2024. The Company adopted this standard as of April 1, 2023. The adoption of this standard did not have a material impact on the Company’s financial position, results of operations, cash flows, and disclosures. |
Revenue Recognition | Marketplace revenue consists of (i) origination fees, (ii) servicing fees, (iii) gain (loss) on sales of loans and (iv) net fair value adjustments, as described below. Origination Fees: The Company receives fees from borrowers for the origination of 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 the 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. |
Marketplace Revenue (Tables)
Marketplace Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 2023 2022 2023 2022 Origination fees $ 60,912 $ 127,142 $ 202,444 $ 398,487 Servicing fees 32,768 23,760 81,163 60,440 Gain on sales of loans 8,572 23,554 35,918 76,983 Net fair value adjustments (41,366) (619) (80,222) 24,277 Total marketplace revenue $ 60,886 $ 173,837 $ 239,303 $ 560,187 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table details the computation of the Company’s Basic and Diluted EPS: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic EPS: Net income attributable to stockholders $ 5,008 $ 43,198 $ 28,784 $ 266,094 Weighted-average common shares – Basic 109,071,180 104,215,594 107,966,544 102,838,645 Basic EPS $ 0.05 $ 0.41 $ 0.27 $ 2.59 Diluted EPS: Net income attributable to stockholders $ 5,008 $ 43,198 $ 28,784 $ 266,094 Weighted-average common shares – Diluted 109,073,194 105,853,938 107,969,920 104,116,240 Diluted EPS $ 0.05 $ 0.41 $ 0.27 $ 2.56 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost, gross unrealized gains and losses, and fair value of available for sale (AFS) securities were as follows: September 30, 2023 Amortized Gross Gross Fair Senior asset-backed securities related to Structured Program transactions $ 413,850 $ — $ (1,453) $ 412,397 U.S. agency residential mortgage-backed securities 263,568 — (52,331) 211,237 U.S. agency securities 93,451 — (18,372) 75,079 Mortgage-backed securities 43,162 — (7,013) 36,149 Other asset-backed securities related to Structured Program transactions (1) 26,831 4,540 (309) 31,062 Other asset-backed securities 28,217 34 (787) 27,464 Municipal securities 3,262 — (981) 2,281 Total securities available for sale (2) $ 872,341 $ 4,574 $ (81,246) $ 795,669 December 31, 2022 Amortized Gross Gross Fair U.S. agency residential mortgage-backed securities $ 255,675 $ — $ (41,248) $ 214,427 U.S. agency securities 90,447 — (16,053) 74,394 Mortgage-backed securities 26,988 — (4,470) 22,518 Asset-backed securities related to Structured Program transactions 8,322 9,395 — 17,717 Other asset-backed securities 14,959 29 (785) 14,203 Municipal securities 3,277 — (834) 2,443 Total securities available for sale (2) $ 399,668 $ 9,424 $ (63,390) $ 345,702 (1) As of September 30, 2023, $24.8 million of the other asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company’s obligations as a “sponsor” under the U.S. Risk Retention Rules. (2) As of September 30, 2023 and December 31, 2022, includes $341.6 million and $319.0 million, respectively, of fair value securities pledged as collateral. |
Schedule of Available-for-sale Securities, Continuous Unrealized Loss Position | 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, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Senior asset-backed securities related to Structured Program transactions $ 372,388 $ (1,453) $ — $ — $ 372,388 $ (1,453) U.S. agency residential mortgage-backed securities 21,064 (892) 190,173 (51,439) 211,237 (52,331) U.S. agency securities 2,960 (40) 72,119 (18,332) 75,079 (18,372) Mortgage-backed securities 16,278 (1,387) 19,871 (5,626) 36,149 (7,013) Other asset-backed securities 14,112 (47) 8,233 (740) 22,345 (787) Other asset-backed securities related to Structured Program transactions 21,486 (309) — — 21,486 (309) Municipal securities — — 2,281 (981) 2,281 (981) Total securities with unrealized losses $ 448,288 $ (4,128) $ 292,677 $ (77,118) $ 740,965 $ (81,246) Less than 12 months Total December 31, 2022 Fair Unrealized Fair Unrealized Fair Unrealized U.S. agency residential mortgage-backed securities $ 111,843 $ (15,831) $ 102,584 $ (25,417) $ 214,427 $ (41,248) U.S. agency securities 50,352 (7,213) 24,042 (8,840) 74,394 (16,053) Mortgage-backed securities 2,441 (229) 20,077 (4,241) 22,518 (4,470) Other asset-backed securities 4,086 (73) 6,945 (712) 11,031 (785) Municipal securities — — 2,443 (834) 2,443 (834) Total securities with unrealized losses $ 168,722 $ (23,346) $ 156,091 $ (40,044) $ 324,813 $ (63,390) |
Schedule of Available-for-sale Securities by Contractual Maturity | The contractual maturities of AFS securities were as follows: September 30, 2023 Amortized Cost Fair Value Weighted- average Yield (1) Due within 1 year: Senior asset-backed securities related to Structured Program transactions $ 230 $ 230 Total due within 1 year 230 230 46.15 % Due after 1 year through 5 years: Senior asset-backed securities related to Structured Program transactions 413,620 412,167 Other asset-backed securities related to Structured Program transactions 26,831 31,062 U.S. agency securities 9,000 8,567 Mortgage-backed securities 1,774 1,556 Other asset-backed securities 441 443 U.S. agency residential mortgage-backed securities 4 3 Total due after 1 year through 5 years 451,670 453,798 3.17 % Due after 5 years through 10 years: U.S. agency securities 18,848 16,768 Other asset-backed securities 15,567 15,545 U.S. agency residential mortgage-backed securities 5,177 4,696 Mortgage-backed securities 2,036 1,634 Municipal securities 621 516 Total due after 5 years through 10 years 42,249 39,159 4.27 % Due after 10 years: U.S. agency residential mortgage-backed securities 258,387 206,538 U.S. agency securities 65,603 49,744 Mortgage-backed securities 39,352 32,959 Other asset-backed securities 12,209 11,476 Municipal securities 2,641 1,765 Total due after 10 years 378,192 302,482 2.80 % Total securities available for sale $ 872,341 $ 795,669 3.07 % (1) The weighted-average yield is computed using the amortized cost at September 30, 2023. |
Loans and Leases Held for Inv_2
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Components of Portfolio Segment by Class of Financing Receivable | The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable: September 30, 2023 December 31, 2022 Unsecured personal $ 4,094,748 $ 3,866,373 Residential mortgages 186,510 199,601 Secured consumer 254,105 194,634 Total consumer loans held for investment 4,535,363 4,260,608 Equipment finance (1) 125,289 160,319 Commercial real estate 373,246 373,501 Commercial and industrial (2) 203,379 238,726 Total commercial loans and leases held for investment 701,914 772,546 Total loans and leases held for investment 5,237,277 5,033,154 Allowance for loan and lease losses (350,495) (327,852) Loans and leases held for investment, net (3) $ 4,886,782 $ 4,705,302 (1) Comprised of sales-type leases for equipment. See “ Note 17. Leases ” for additional information. (2) Includes $7.6 million and $67.0 million of pledged loans under the Paycheck Protection Program (PPP) as of September 30, 2023 and December 31, 2022, respectively. (3) As of September 30, 2023 and December 31, 2022, the Company had $4.0 billion and $283.6 million in loans pledged as collateral under the Federal Reserve Bank (FRB) Discount Window, respectively. In addition, as of September 30, 2023 and December 31, 2022 , the Company had $511.2 million and $156.2 million in loans pledged to the Federal Home Loan Bank ( FHLB) of Des Moines, respectively. September 30, 2023 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 4,535,363 $ 336,288 $ 4,199,075 7.4 % Total commercial loans and leases held for investment 701,914 14,207 687,707 2.0 % Total loans and leases held for investment $ 5,237,277 $ 350,495 $ 4,886,782 6.7 % December 31, 2022 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 4,260,608 $ 312,489 $ 3,948,119 7.3 % Total commercial loans and leases held for investment 772,546 15,363 757,183 2.0 % Total loans and leases held for investment $ 5,033,154 $ 327,852 $ 4,705,302 6.5 % (1) Calculated as the ratio of allowance for loan and lease losses (ALLL) to loans and leases HFI at amortized cost. |
Schedule of Allowance for Credit Loss | The activity in the ACL by portfolio segment was as follows: Three Months Ended September 30, 2023 2022 Consumer Commercial Total Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ 341,161 $ 14,002 $ 355,163 $ 228,184 $ 15,076 $ 243,260 Credit loss expense for loans and leases held for investment 63,733 394 64,127 81,935 664 82,599 Charge-offs (1) (73,644) (534) (74,178) (22,944) (784) (23,728) Recoveries 5,038 345 5,383 963 107 1,070 Allowance for loan and lease losses, end of period $ 336,288 $ 14,207 $ 350,495 $ 288,138 $ 15,063 $ 303,201 Reserve for unfunded lending commitments, beginning of period $ — $ 2,017 $ 2,017 $ 136 $ 1,889 $ 2,025 Credit loss expense for unfunded lending commitments — 352 352 (78) 218 140 Reserve for unfunded lending commitments, end of period (2) $ — $ 2,369 $ 2,369 $ 58 $ 2,107 $ 2,165 Nine Months Ended September 30, 2023 2022 Consumer Commercial Total Consumer Commercial Total Allowance for loan and lease losses, beginning of period $ 312,489 $ 15,363 $ 327,852 $ 128,812 $ 15,577 $ 144,389 Credit loss expense for loans and leases held for investment 201,291 (124) 201,167 203,967 913 204,880 Charge-offs (1) (189,201) (1,809) (191,010) (46,668) (2,001) (48,669) Recoveries 11,709 777 12,486 2,027 574 2,601 Allowance for loan and lease losses, end of period $ 336,288 $ 14,207 $ 350,495 $ 288,138 $ 15,063 $ 303,201 Reserve for unfunded lending commitments, beginning of period $ 18 $ 1,860 $ 1,878 $ — $ 1,231 $ 1,231 Credit loss expense for unfunded lending commitments (18) 509 491 58 876 934 Reserve for unfunded lending commitments, end of period (2) $ — $ 2,369 $ 2,369 $ 58 $ 2,107 $ 2,165 (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 $89.5 million and $144.0 million of unfunded commitments, associated primarily with the commercial loan portfolio, as of September 30, 2023 and 2022, respectively. |
Schedule of Financing Receivable Gross Charge-Offs and Credit Quality Indicators | The following table presents year-to-date gross charge-offs by origination year for the period presented: Nine Months Ended September 30, 2023 Gross Charge-Offs by Origination Year 2023 2022 2021 2020 2019 Prior Total Unsecured personal $ 7,730 $ 106,835 $ 72,330 $ — $ — $ — $ 186,895 Residential mortgages — — — — — — — Secured consumer 93 1,668 545 — — — 2,306 Total consumer loans held for investment 7,823 108,503 72,875 — — — 189,201 Equipment finance — — — — — — — Commercial real estate — — — — — — — Commercial and industrial — — 1,369 — 318 122 1,809 Total commercial loans and leases held for investment — — 1,369 — 318 122 1,809 Total loans and leases held for investment $ 7,823 $ 108,503 $ 74,244 $ — $ 318 $ 122 $ 191,010 September 30, 2023 Term Loans and Leases by Origination Year 2023 2022 2021 2020 2019 Prior Total Unsecured personal Current $ 1,500,780 $ 1,954,955 $ 552,491 $ — $ — $ — $ 4,008,226 30-59 days past due 6,728 18,780 7,968 — — — 33,476 60-89 days past due 4,159 15,830 6,679 — — — 26,668 90 or more days past due 4,409 16,987 8,002 — — — 29,398 Total unsecured personal (1) 1,516,076 2,006,552 575,140 — — — 4,097,768 Residential mortgages Current — 48,934 56,128 30,204 20,403 30,678 186,347 30-59 days past due — — — — — — — 60-89 days past due — — — — — — — 90 or more days past due — — — — — 163 163 Total residential mortgages — 48,934 56,128 30,204 20,403 30,841 186,510 Secured consumer Current 114,186 109,327 25,434 — 2,481 — 251,428 30-59 days past due 199 1,188 291 — — — 1,678 60-89 days past due 45 484 261 — — — 790 90 or more days past due — 149 60 — — — 209 Total secured consumer 114,430 111,148 26,046 — 2,481 — 254,105 Total consumer loans held for investment $ 1,630,506 $ 2,166,634 $ 657,314 $ 30,204 $ 22,884 $ 30,841 $ 4,538,383 (1) Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of September 30, 2023, the basis adjustment totaled $3.0 million and represents a reduction to the amortized cost of the hedged loans. See “ Note 8. Derivative Instruments and Hedging Activities ” for additional information. December 31, 2022 Term Loans and Leases by Origination Year 2022 2021 2020 2019 2018 Prior Total Unsecured personal Current $ 2,835,460 $ 977,224 $ — $ — $ — $ — $ 3,812,684 30-59 days past due 11,149 9,867 — — — — 21,016 60-89 days past due 7,785 8,633 — — — — 16,418 90 or more days past due 6,813 9,442 — — — — 16,255 Total unsecured personal 2,861,207 1,005,166 — — — — 3,866,373 Residential mortgages Current 49,721 58,353 31,465 21,683 4,546 33,248 199,016 30-59 days past due — — — — — — — 60-89 days past due — — — — — 254 254 90 or more days past due — — — — — 331 331 Total residential mortgages 49,721 58,353 31,465 21,683 4,546 33,833 199,601 Secured consumer Current 151,725 38,076 — 2,543 — — 192,344 30-59 days past due 1,017 703 — — — — 1,720 60-89 days past due 235 147 — — — — 382 90 or more days past due 116 72 — — — — 188 Total secured consumer 153,093 38,998 — 2,543 — — 194,634 Total consumer loans held for investment $ 3,064,021 $ 1,102,517 $ 31,465 $ 24,226 $ 4,546 $ 33,833 $ 4,260,608 The following tables present the classes of financing receivables within the commercial portfolio segment by risk rating and origination year: September 30, 2023 Term Loans and Leases by Origination Year 2023 2022 2021 2020 2019 Prior Total Guaranteed Amount (1) Equipment finance Pass $ 3,266 $ 36,438 $ 29,017 $ 9,088 $ 8,963 $ 8,797 $ 95,569 $ — Special mention — 15,059 2,435 6,085 2,872 — 26,451 — Substandard — — — 536 — 2,733 3,269 — Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 3,266 51,497 31,452 15,709 11,835 11,530 125,289 — Commercial real estate Pass 39,237 94,645 35,078 43,382 52,066 76,254 340,662 33,681 Special mention — — — — — 9,362 9,362 — Substandard — 3,641 6,738 — 221 10,571 21,171 8,515 Doubtful — — — — — — — — Loss — — 1,515 — — 536 2,051 1,471 Total commercial real estate 39,237 98,286 43,331 43,382 52,287 96,723 373,246 43,667 Commercial and industrial Pass 35,793 64,912 42,901 10,287 9,136 11,054 174,083 107,266 Special mention — 10,734 1,252 1,297 115 385 13,783 9,469 Substandard — 1,102 5,133 787 3,691 3,253 13,966 7,986 Doubtful — — — — — 286 286 216 Loss — — — — — 1,261 1,261 1,229 Total commercial and industrial 35,793 76,748 49,286 12,371 12,942 16,239 203,379 126,166 Total commercial loans and leases held for investment $ 78,296 $ 226,531 $ 124,069 $ 71,462 $ 77,064 $ 124,492 $ 701,914 $ 169,833 (1) Represents loan balances guaranteed by the Small Business Association (SBA). December 31, 2022 Term Loans and Leases by Origination Year 2022 2021 2020 2019 2018 Prior Total Guaranteed Amount (1) Equipment finance Pass $ 59,227 $ 38,218 $ 25,014 $ 15,785 $ 11,880 $ 3,444 $ 153,568 $ — Special mention — 2,094 — 3,759 — — 5,853 — Substandard — — 859 — 39 — 898 — Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 59,227 40,312 25,873 19,544 11,919 3,444 160,319 — Commercial real estate Pass 100,602 53,445 47,497 52,834 35,992 60,976 351,346 40,693 Special mention — — 8,415 260 1,237 405 10,317 — Substandard — — — 643 2,404 8,215 11,262 — Doubtful — — — — — — — — Loss — — — — — 576 576 — Total commercial real estate 100,602 53,445 55,912 53,737 39,633 70,172 373,501 40,693 Commercial and industrial Pass 61,076 99,264 24,726 13,866 5,174 10,831 214,937 141,858 Special mention — — — 483 163 455 1,101 44 Substandard — 9,361 4,529 3,623 797 2,820 21,130 5,716 Doubtful — — — — — 286 286 216 Loss — — — — 1 1,271 1,272 1,229 Total commercial and industrial 61,076 108,625 29,255 17,972 6,135 15,663 238,726 149,063 Total commercial loans and leases held for investment $ 220,905 $ 202,382 $ 111,040 $ 91,253 $ 57,687 $ 89,279 $ 772,546 $ 189,756 (1) Represents loan balances guaranteed by the SBA. |
Schedule of 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, 2023 30-59 60-89 90 or More Total Equipment finance $ — $ 3,150 $ — $ 3,150 Commercial real estate 4,493 434 1,618 6,545 Commercial and industrial (1) 1,514 29 1,515 3,058 Total commercial loans and leases held for investment $ 6,007 $ 3,613 $ 3,133 $ 12,753 December 31, 2022 30-59 60-89 90 or More Total Equipment finance $ 3,172 $ — $ 859 $ 4,031 Commercial real estate — 102 — 102 Commercial and industrial (1) — — 1,643 1,643 Total commercial loans and leases held for investment $ 3,172 $ 102 $ 2,502 $ 5,776 (1) Past due PPP loans are excluded from the tables. The following table presents nonaccrual loans and leases: September 30, 2023 December 31, 2022 Nonaccrual (1) Nonaccrual with no related ACL (2) Nonaccrual (1) Nonaccrual with no related ACL (2) Unsecured personal $ 29,398 $ — $ 16,255 $ — Residential mortgages 316 316 331 331 Secured consumer 209 — 188 — Total nonaccrual consumer loans held for investment 29,923 316 16,774 331 Equipment finance 2,733 — 898 39 Commercial real estate 10,113 2,431 1,018 1,018 Commercial and industrial 7,230 1,892 16,137 1,229 Total nonaccrual commercial loans and leases held for investment (3) 20,076 4,323 18,053 2,286 Total nonaccrual loans and leases held for investment $ 49,999 $ 4,639 $ 34,827 $ 2,617 (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, 2023 and December 31, 2022. (2) Subset of total nonaccrual loans and leases. (3) Includes $12.7 million and $4.9 million in loan balances guaranteed by the SBA as of September 30, 2023 and December 31, 2022, respectively. September 30, 2023 December 31, 2022 Nonaccrual Nonaccrual Ratios (1) Nonaccrual Nonaccrual Ratios (1) Total nonaccrual consumer loans held for investment $ 29,923 0.7 % $ 16,774 0.4 % Total nonaccrual commercial loans and leases held for investment 20,076 2.9 % 18,053 2.3 % Total nonaccrual loans and leases held for investment $ 49,999 1.0 % $ 34,827 0.7 % (1) Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI at amortized cost. |
Securitizations and Variable _2
Securitizations and Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Select Information Related to VIEs | The following table presents the classifications of assets and liabilities on the Company’s Balance Sheet for its transactions with consolidated and unconsolidated VIEs. The Company’s transactions with VIEs include Structured Program transactions. The Company has also various forms of involvement with VIEs, including servicing loans and holding senior asset-backed securities or subordinated interests in the VIEs. Additionally, the assets and liabilities in the table below exclude intercompany balances that were eliminated in consolidation. September 30, 2023 December 31, 2022 Consolidated Unconsolidated Total Consolidated Unconsolidated Total Assets Restricted cash $ 3,813 $ — $ 3,813 $ 8,048 $ — $ 8,048 Securities available for sale at fair value — 443,460 443,460 — 17,717 17,717 Loans held for investment at fair value 1,095 — 1,095 3,994 — 3,994 Retail and certificate loans held for investment at fair value 637 — 637 1,946 — 1,946 Other assets 19 17,161 17,180 206 10,464 10,670 Total assets $ 5,564 $ 460,621 $ 466,185 $ 14,194 $ 28,181 $ 42,375 Liabilities Borrowings $ 3,329 $ — $ 3,329 $ 8,085 $ — $ 8,085 Retail notes, certificates and secured borrowings at fair value 637 — 637 1,946 — 1,946 Other liabilities 5 980 985 29 — 29 Total liabilities 3,971 980 4,951 10,060 — 10,060 Total net assets (maximum loss exposure) $ 1,593 $ 459,641 $ 461,234 $ 4,134 $ 28,181 $ 32,315 The following table summarizes activity related to unconsolidated VIEs where the transfers were accounted for as a sale on the Company’s financial statements: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Fair value of consideration received: Cash $ 40,994 $ — $ 59,045 $ 5,320 Asset-backed securities retained 301,602 — 454,831 2,180 Other assets (liabilities) 3,790 — 6,089 (3,794) Total consideration 346,386 — 519,965 3,706 Deconsolidation of debt — — — 36,072 Fair value of loans sold (343,142) — (514,701) (39,519) Gain on sales of loans (1) $ 3,244 $ — $ 5,264 $ 259 Cash proceeds from continuing involvement: Servicing and other administrative fees $ 1,234 $ 1,782 $ 3,110 $ 7,294 Interest received on asset-backed securities retained $ 5,142 $ 1,294 $ 8,736 $ 6,373 (1) Consists primarily of servicing assets recognized at the time of sale, less any transaction costs, and excludes origination fees and fair value adjustments recognized prior to the sale. Prior period amounts have been reclassified to conform to the current period presentation. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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, 2023 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 362,789 $ 362,789 Loans held for investment at fair value — — 326,299 326,299 Retail and certificate loans held for investment at fair value — — 18,118 18,118 Securities available for sale: Senior asset-backed securities related to Structured Program transactions — — 412,397 412,397 U.S. agency residential mortgage-backed securities — 211,237 — 211,237 U.S. agency securities — 75,079 — 75,079 Mortgage-backed securities — 36,149 — 36,149 Other asset-backed securities related to Structured Program transactions — — 31,062 31,062 Other asset-backed securities — 27,464 — 27,464 Municipal securities — 2,281 — 2,281 Total securities available for sale — 352,210 443,459 795,669 Servicing assets — — 81,760 81,760 Other assets — 8,965 — 8,965 Total assets $ — $ 361,175 $ 1,232,425 $ 1,593,600 Liabilities: Borrowings $ — $ — $ 3,329 $ 3,329 Retail notes, certificates and secured borrowings — — 18,118 18,118 Other liabilities — 5,482 4,614 10,096 Total liabilities $ — $ 5,482 $ 26,061 $ 31,543 December 31, 2022 Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans held for sale at fair value $ — $ — $ 110,400 $ 110,400 Loans held for investment at fair value — — 925,938 925,938 Retail and certificate loans held for investment at fair value — — 55,425 55,425 Securities available for sale: U.S. agency residential mortgage-backed securities — 214,427 — 214,427 U.S. agency securities — 74,394 — 74,394 Mortgaged-backed securities — 22,518 — 22,518 Other asset-backed securities — 14,203 — 14,203 Asset-backed securities related to Structured Program transactions — 5,248 12,469 17,717 Municipal securities — 2,443 — 2,443 Total securities available for sale — 333,233 12,469 345,702 Servicing assets — — 84,308 84,308 Other assets — — 5,099 5,099 Total assets $ — $ 333,233 $ 1,193,639 $ 1,526,872 Liabilities: Borrowings $ — $ — $ 8,085 $ 8,085 Retail notes, certificates and secured borrowings — — 55,425 55,425 Other liabilities — — 8,583 8,583 Total liabilities $ — $ — $ 72,093 $ 72,093 |
Schedule of 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 loans HFS at fair value: September 30, 2023 Minimum Maximum Weighted- Average Discount rates 8.8 % 11.2 % 9.6 % Net cumulative expected loss rates (1) 3.5 % 23.4 % 10.9 % Cumulative expected prepayment rates (1) 27.7 % 37.3 % 32.5 % (1) Expressed as a percentage of the acquired principal balance of the loan. The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 loans HFI at fair value: September 30, 2023 December 31, 2022 Minimum Maximum Weighted- Average Minimum Maximum Weighted- Average Discount rates 8.5 % 16.5 % 12.8 % 8.8 % 17.1 % 12.7 % Net cumulative expected loss rates (1) 2.5 % 11.0 % 7.1 % 2.1 % 9.8 % 5.7 % Cumulative expected prepayment rates (1) 20.6 % 28.5 % 25.2 % 26.2 % 35.3 % 30.8 % (1) Expressed as a percentage of the acquired principal balance of the loan. The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for other asset-backed securities related to Structured Program transactions: September 30, 2023 Minimum Maximum Weighted- Discount rates 8.8 % 11.2 % 9.5 % Net cumulative expected loss rates (1) 3.6 % 23.0 % 9.3 % Cumulative expected prepayment rates (1) 27.7 % 37.3 % 32.7 % (1) Expressed as a percentage of the outstanding collateral balance. The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for servicing assets relating to loans sold to investors: September 30, 2023 December 31, 2022 Minimum Maximum Weighted- Minimum Maximum Weighted- Discount rates 8.7 % 17.3 % 11.6 % 7.5 % 16.4 % 10.1 % Net cumulative expected loss rates (1) 3.5 % 37.7 % 15.6 % 2.1 % 36.7 % 15.6 % Cumulative expected prepayment rates (1) 18.5 % 44.6 % 32.7 % 15.8 % 47.2 % 35.9 % 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. |
Schedule of Fair Value Sensitivity of Loans | The sensitivity of loans HFS at fair value to adverse changes in key assumptions are as follows: September 30, 2023 Loans held for sale at fair value $ 362,789 Expected weighted-average life (in years) 1.5 Discount rates: 100 basis point increase $ (4,628) 200 basis point increase $ (9,160) Expected credit loss rates on underlying loans: 10% increase $ (4,292) 20% increase $ (8,530) Expected prepayment rates: 10% increase $ (660) 20% increase $ (1,244) The sensitivity of loans HFI at fair value to adverse changes in key assumptions are as follows: September 30, 2023 December 31, 2022 Loans held for investment at fair value $ 326,299 $ 925,938 Expected weighted-average life (in years) 0.9 0.9 Discount rates: 100 basis point increase $ (2,633) $ (7,471) 200 basis point increase $ (5,226) $ (14,830) Expected credit loss rates on underlying loans: 10% increase $ (2,028) $ (5,574) 20% increase $ (3,985) $ (11,307) Expected prepayment rates: 10% increase $ (1,519) $ (4,311) 20% increase $ (2,636) $ (7,480) |
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents additional information about Level 3 loans HFS on a recurring basis: Three Months Ended Nine Months Ended 2023 2023 Fair value at beginning of period $ 250,361 $ 110,400 Originations and purchases 1,107,771 3,584,918 Sales (950,451) (3,435,949) Principal payments (22,372) (33,972) Transfers 3,299 195,106 Fair value adjustments recorded in earnings (25,819) (57,714) Fair value at end of period $ 362,789 $ 362,789 The following table presents additional information about Level 3 loans HFI at fair value on a recurring basis: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Fair value at beginning of period $ 404,119 $ 20,583 $ 925,938 $ 21,240 Purchases 112 136 4,149 150 Principal payments (76,495) (5,913) (419,233) (17,660) Transfers (3,472) — (195,106) 11,966 Interest income accretion and fair value adjustments recorded in earnings 2,035 251 10,551 (639) Fair value at end of period $ 326,299 $ 15,057 $ 326,299 $ 15,057 The following table presents additional information about Level 3 senior asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis: Three Months Ended Nine Months Ended 2023 2023 Fair value at beginning of period $ 142,785 $ — Additions 284,704 429,384 Cash received (14,244) (15,534) Change in unrealized loss (848) (1,453) Fair value at end of period $ 412,397 $ 412,397 The following table presents additional information about Level 3 other asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis: Three Months Ended September 30, Nine Months Ended September 30, 2023 2023 Fair value at beginning of period $ 16,980 $ 12,469 Additions 17,190 25,970 Cash received (2,812) (7,081) Change in unrealized loss (296) (296) Fair value at end of period $ 31,062 $ 31,062 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 2023 2022 2023 2022 Fair value at beginning of period $ 85,387 $ 79,427 $ 84,308 $ 67,726 Issuances (1) 11,568 22,319 39,269 73,774 Change in fair value, included in Marketplace revenue (12,100) (14,689) (41,750) (52,702) Other net changes (3,095) (539) (67) (2,280) Fair value at end of period $ 81,760 $ 86,518 $ 81,760 $ 86,518 (1) Represents the gains or losses on sales of the related loans. |
Schedule of Sensitivity Analysis of Debt Securities Available-for-Sale | The following table presents adverse changes to the fair value sensitivity of Level 3 other asset-backed securities related to Structured Program transactions to changes in key assumptions: September 30, 2023 Fair value of interests held $ 31,062 Expected weighted-average life (in years) 1.5 Discount rates 100 basis point increase $ (369) 200 basis point increase $ (735) Expected loss rates 10% increase $ (523) 20% increase $ (1,058) Expected prepayment rates 10% increase $ (190) 20% increase $ (425) |
Schedule of 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, December 31, 2022 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Servicing rate increase by 0.10% $ (8,759) $ (10,505) Servicing rate decrease by 0.10% $ 8,759 $ 10,505 |
Schedule of 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, December 31, 2022 Fair value of servicing assets $ 81,760 $ 84,308 Discount rates 100 basis point increase $ (695) $ (726) 200 basis point increase $ (1,391) $ (1,451) Expected loss rates 10% increase $ (1,026) $ (1,037) 20% increase $ (2,051) $ (2,074) Expected prepayment rates 10% increase $ (1,720) $ (1,994) 20% increase $ (3,440) $ (3,989) |
Schedule of 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, 2023 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans and leases held for investment, net $ 4,886,782 $ — $ — $ 5,060,962 $ 5,060,962 Other assets 39,727 — 38,885 1,118 40,003 Total assets $ 4,926,509 $ — $ 38,885 $ 5,062,080 $ 5,100,965 Liabilities: Deposits (1) $ 1,169,593 $ — $ — $ 1,164,915 $ 1,164,915 Borrowings 7,388 — 27 7,361 7,388 Other liabilities 62,572 — 37,270 25,302 62,572 Total liabilities $ 1,239,553 $ — $ 37,297 $ 1,197,578 $ 1,234,875 December 31, 2022 Carrying Amount Level 1 Inputs Level 2 Inputs Level 3 Inputs Balance at Assets: Loans and leases held for investment, net $ 4,705,302 $ — $ — $ 4,941,825 $ 4,941,825 Other assets 36,646 — 35,300 1,397 36,697 Total assets $ 4,741,948 $ — $ 35,300 $ 4,943,222 $ 4,978,522 Liabilities: Deposits (1) $ 860,808 $ — $ — $ 860,808 $ 860,808 Borrowings 66,773 — 2,619 64,154 66,773 Other liabilities 62,247 — 30,311 31,936 62,247 Total liabilities $ 989,828 $ — $ 32,930 $ 956,898 $ 989,828 (1) Excludes deposit liabilities with no defined or contractual maturities. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional and Gross Fair Value Amounts of Derivatives used for Hedging | The table below presents the notional and gross fair value amounts of the Company’s derivatives used for hedging as of September 30, 2023: Notional Gross Derivative Asset Fair Value (1) Derivatives used for hedging: Interest rate swaps $ 1,500,000 $ 3,483 (1) Recorded in “Other assets” on the Balance Sheet. |
Schedule of Gains (Losses) Related to Fair Value Hedges | The following table summarizes the gains (losses) recognized on the Company’s fair value hedges for both the three and nine months ended September 30, 2023: Gains (losses) recognized on: Hedged item $ (3,020) Derivatives used for hedging 3,483 Interest settlement on derivative (1) 883 Total gains on fair value hedges (2) $ 1,346 (1) Includes accrued interest receivable and accrued interest payable. (2) Recorded in “Interest and fees on loans held for investment at amortized cost” on the Income Statement. |
Schedule of Cumulative Basis Adjustments for Fair Value Hedges | The following table presents the cumulative basis adjustments for fair value hedges as of September 30, 2023: Balance Sheet Line Item Carrying Amount of Closed Portfolio (1) Cumulative Fair Value Adjustment to Hedged Item Loans and leases held for investment at amortized cost $ 3,586,394 $ (3,020) (1) Represents the amortized cost of the total closed portfolio of loans designated in a portfolio method hedge relationship in which the hedged item is a stated layer that is expected to be remaining at the end of the hedging relationship. At September 30, 2023, the amortized cost of loans designated as the hedged item in the portfolio layer hedging relationship was $1.5 billion. |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment and Software, Net | Property, equipment and software, net, consist of the following: September 30, 2023 December 31, 2022 Software (1) $ 206,311 $ 174,360 Leasehold improvements 31,249 31,214 Computer equipment 23,753 27,410 Furniture and fixtures 6,088 6,088 Total property, equipment and software 267,401 239,072 Accumulated depreciation and amortization (107,633) (102,599) Total property, equipment and software, net $ 159,768 $ 136,473 (1) Includes $71.7 million and $43.7 million of development in progress for internally-developed software and $4.7 million and $3.0 million of development in progress to customize purchased software as of September 30, 2023 and December 31, 2022, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 December 31, 2022 Gross carrying value $ 54,500 $ 54,500 Accumulated amortization (41,349) (38,166) Net carrying value $ 13,151 $ 16,334 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The expected future amortization expense for intangible assets as of September 30, 2023, is as follows: 2023 $ 1,015 2024 3,549 2025 2,901 2026 2,252 2027 1,603 Thereafter 1,831 Total $ 13,151 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: September 30, December 31, Deferred tax asset, net (1) $ 171,766 $ 173,687 Servicing assets (2) 82,602 85,654 Operating lease assets 53,510 63,872 Nonmarketable equity investments 46,812 38,320 Intangible assets, net (3) 13,151 16,334 Other 129,111 122,439 Total other assets $ 496,952 $ 500,306 (1) See “ Note 16. Income Taxes ” for additional detail. (2) Loans underlying servicing assets had a total outstanding principal balance of $9.7 billion and $11.0 billion as of September 30, 2023 and December 31, 2022, respectively. (3) See “ Note 10. Goodwill and Intangible Assets ” for additional detail. |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Deposits | Deposits consist of the following: September 30, December 31, Interest-bearing deposits: Savings and money market accounts 4,537,503 3,616,657 Certificates of deposit 1,169,593 860,808 Checking accounts 979,973 1,681,095 Total 6,687,069 6,158,560 Noninterest-bearing deposits 313,194 233,993 Total deposits $ 7,000,263 $ 6,392,553 Total certificates of deposit at September 30, 2023 are scheduled to mature as follows: 2023 $ 310,816 2024 833,003 2025 14,075 2026 1,252 2027 9,228 Thereafter 1,219 Total certificates of deposit $ 1,169,593 The following table presents the amount of certificates of deposit with denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand, segregated by time remaining until maturity, as of September 30, 2023: Three months or less Over 3 months through Over 6 months through Over Total Certificates of deposit $ 4,949 $ 5,117 $ 43,598 $ 3,674 $ 57,338 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following table summarizes the Company’s long-term debt, as of the dates indicated: September 30, 2023 December 31, 2022 Advances from PPPLF (1) : Aggregate debt outstanding (fixed interest rate of 0.35%) $ 7,361 $ 64,154 Pledged collateral $ 7,560 $ 66,971 Retail notes, certificates and secured borrowings (2) : Aggregate debt outstanding $ 18,118 $ 55,425 Payable on Structured Program borrowings (3) : Aggregate debt outstanding $ 3,329 $ 8,085 Pledged collateral $ 4,828 $ 9,708 (1) Collateralized by SBA PPP loans originated by the Company. The maturity date of the PPPLF borrowings matches the maturity date of the pledged SBA PPP loans. When loans are forgiven by the SBA, the corresponding PPPLF advance is paid by the Company. (2) The Company does not assume principal or interest rate risk on loans that were funded by Retail Notes because loan balances, interest rates and maturities were matched and offset by an equal balance of notes with the exact same interest rates and maturities. As of December 31, 2020, LendingClub ceased offering and selling Retail Notes. The total balance of outstanding Retail Notes will continue to decline as underlying borrower payments are made. (3) Consists of certificate participations and securities of certain consolidated VIEs held by third-party investors and secured by “Loans held for investment at fair value” totaling $1.1 million and $4.0 million and “Restricted cash” of $3.7 million and $5.7 million as of September 30, 2023 and December 31, 2022, respectively. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Other Liabilities | Other liabilities consist of the following: September 30, December 31, 2022 Operating lease liabilities $ 65,747 $ 77,291 Accounts payable and accrued expenses 54,179 98,173 Payable to investors (1) 37,270 30,311 Other 77,838 86,842 Total other liabilities $ 235,034 $ 292,617 (1) Represents principal and interest on loans collected by the Company and pending disbursement to investors. |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Postemployment Benefits [Abstract] | |
Schedule of 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 2023 2022 2023 2022 RSUs and PBRSUs $ 16,855 $ 18,931 $ 49,292 $ 56,098 Stock options — 6 — 46 Stock-based compensation expense, gross 16,855 18,937 49,292 56,144 Less: Capitalized stock-based compensation expense 2,449 2,194 7,170 5,934 Stock-based compensation expense, net $ 14,406 $ 16,743 $ 42,122 $ 50,210 |
Schedule of RSU Activity | The following table summarizes the activities for the Company’s RSUs: Number Weighted- Unvested at December 31, 2022 8,672,626 $ 12.94 Granted 6,533,732 $ 7.68 Vested (4,329,854) $ 11.63 Forfeited/expired (1,772,768) $ 12.42 Unvested at September 30, 2023 9,103,736 $ 9.89 |
Schedule of PBRSU Activity | The following table summarizes the activities for the Company’s PBRSUs: Number Weighted- Unvested at December 31, 2022 1,754,898 $ 11.19 Granted 807,499 $ 7.15 Vested (870,766) $ 4.22 Forfeited/expired (104,084) $ 11.77 Unvested at September 30, 2023 1,587,547 $ 12.63 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets | The following table summarizes the Company’s net deferred tax assets: September 30, December 31, 2022 Deferred tax assets, net of liabilities $ 219,329 $ 221,408 Valuation allowance (47,563) (47,721) Deferred tax assets, net of valuation allowance $ 171,766 $ 173,687 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Components of Equipment Finance Assets | The components of Equipment Finance assets are as follows: September 30, December 31, 2022 Lease receivables $ 103,750 $ 137,969 Unguaranteed residual asset values 33,264 39,262 Unearned income (12,397) (17,786) Deferred fees 672 874 Total $ 125,289 $ 160,319 |
Schedule of 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, 2023 were as follows: 2023 $ 15,167 2024 35,355 2025 27,288 2026 16,796 2027 7,447 Thereafter 5,538 Total lease payments $ 107,591 Discount effect (3,841) Present value of future minimum lease payments $ 103,750 |
Schedule of Supplemental Balance Sheet Information | Balance sheet information related to leases was as follows: ROU Assets and Lease Liabilities Balance Sheet Classification September 30, 2023 December 31, 2022 Operating lease assets Other assets $ 53,510 $ 63,872 Operating lease liabilities Other liabilities $ 65,747 $ 77,291 |
Schedule of Lease Costs | Components of net lease costs were as follows: Three Months Ended Nine Months Ended Net Lease Costs Income Statement Classification 2023 2022 2023 2022 Operating lease costs Occupancy $ (3,114) $ (3,195) $ (9,376) $ (12,041) Sublease revenue Other non-interest income — — — 2,847 Net lease costs $ (3,114) $ (3,195) $ (9,376) $ (9,194) |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s operating leases was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Non-cash operating activity: Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities $ — $ — $ (4,664) $ — |
Schedule of Future Minimum Undiscounted Lease Payments | The Company’s future minimum undiscounted lease payments under operating leases as of September 30, 2023 were as follows: Operating Lease 2023 $ 3,220 2024 12,798 2025 13,129 2026 11,710 2027 10,987 Thereafter 27,238 Total lease payments $ 79,082 Discount effect (13,335) Present value of future minimum lease payments $ 65,747 |
Schedule of 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, 2023 Weighted-average remaining lease term (in years) 6.49 Weighted-average discount rate 5.40 % |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table summarizes the Company’s and LC Bank’s regulatory capital amounts (in millions) and ratios: September 30, 2023 December 31, 2022 Required Minimum plus Required CCB for Non-Leverage Ratios Amount Ratio Amount Ratio LendingClub Corporation: CET1 capital (1) $ 1,078.7 16.9 % $ 1,005.8 15.8 % 7.0 % Tier 1 capital $ 1,078.7 16.9 % $ 1,005.8 15.8 % 8.5 % Total capital $ 1,161.7 18.2 % $ 1,088.1 17.1 % 10.5 % Tier 1 leverage $ 1,078.7 13.2 % $ 1,005.8 14.1 % 4.0 % Risk-weighted assets $ 6,388.6 N/A $ 6,360.7 N/A N/A Quarterly adjusted average assets $ 8,200.3 N/A $ 7,119.0 N/A N/A LendingClub Bank: CET1 capital (1) $ 949.7 15.1 % $ 852.2 13.8 % 7.0 % Tier 1 capital $ 949.7 15.1 % $ 852.2 13.8 % 8.5 % Total capital $ 1,031.2 16.5 % $ 932.4 15.1 % 10.5 % Tier 1 leverage $ 949.7 11.8 % $ 852.2 12.5 % 4.0 % Risk-weighted assets $ 6,268.6 N/A $ 6,194.0 N/A N/A Quarterly adjusted average assets $ 8,016.0 N/A $ 6,795.2 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, 2023 | |
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 2023 2022 2023 2022 Referral revenue $ 1,029 $ 3,144 $ 4,008 $ 10,860 Realized gains on sales of securities available for sale — — — 36 Other 1,929 4,256 5,341 13,843 Total other non-interest income $ 2,958 $ 7,400 $ 9,349 $ 24,739 Other non-interest expense consists of the following: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Consumer credit services $ 2,930 $ 4,610 $ 10,377 $ 15,804 Other 10,146 10,496 35,724 30,727 Total other non-interest expense $ 13,076 $ 15,106 $ 46,101 $ 46,531 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 2022 2023 2022 2023 2022 2023 2022 Non-interest income: Marketplace revenue $ 37,439 $ 153,504 $ 12,320 $ 9,015 $ 11,127 $ 11,318 $ 60,886 $ 173,837 Other non-interest income 18,783 25,240 2,478 4,794 (18,303) (22,634) 2,958 7,400 Total non-interest income 56,222 178,744 14,798 13,809 (7,176) (11,316) 63,844 181,237 Interest income: Interest income 203,961 137,142 3,451 6,078 — — 207,412 143,220 Interest expense (69,517) (15,277) (890) (4,267) — — (70,407) (19,544) Net interest income 134,444 121,865 2,561 1,811 — — 137,005 123,676 Total net revenue 190,666 300,609 17,359 15,620 (7,176) (11,316) 200,849 304,913 Provision for credit losses (64,463) (82,739) (16) — — — (64,479) (82,739) Non-interest expense (122,142) (177,714) (13,069) (19,821) 7,176 11,316 (128,035) (186,219) Income (Loss) before income tax benefit (expense) 4,061 40,156 4,274 (4,201) — — 8,335 35,955 Income tax benefit (expense) (2,380) (9,440) (947) 16,683 — — (3,327) 7,243 Net income $ 1,681 $ 30,716 $ 3,327 $ 12,482 $ — $ — $ 5,008 $ 43,198 Capital expenditures $ 15,984 $ 17,301 $ — $ — $ — $ — $ 15,984 $ 17,301 Depreciation and amortization $ 7,579 $ 4,099 $ 3,671 $ 6,582 $ — $ — $ 11,250 $ 10,681 LendingClub LendingClub Intercompany Consolidated Total Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 2023 2022 2023 2022 Non-interest income: Marketplace revenue $ 172,133 $ 509,426 $ 33,200 $ 35,313 $ 33,970 $ 15,448 $ 239,303 $ 560,187 Other non-interest income 59,687 64,779 7,462 12,931 (57,800) (52,971) 9,349 24,739 Total non-interest income 231,820 574,205 40,662 48,244 (23,830) (37,523) 248,652 584,926 Interest income: Interest income 612,805 357,117 11,506 26,224 — — 624,311 383,341 Interest expense (189,959) (25,134) (3,991) (18,625) — — (193,950) (43,759) Net interest income 422,846 331,983 7,515 7,599 — — 430,361 339,582 Total net revenue 654,666 906,188 48,177 55,843 (23,830) (37,523) 679,013 924,508 Provision for credit losses (201,658) (205,814) — — — — (201,658) (205,814) Non-interest expense (413,088) (552,809) (47,164) (71,523) 23,830 37,523 (436,422) (586,809) Income (Loss) before income tax benefit (expense) 39,920 147,565 1,013 (15,680) — — 40,933 131,885 Income tax benefit (expense) (12,065) (39,113) (84) 120,274 — 53,048 (12,149) 134,209 Net income $ 27,855 $ 108,452 $ 929 $ 104,594 $ — $ 53,048 $ 28,784 $ 266,094 Capital expenditures $ 48,239 $ 54,659 $ — $ — $ — $ — $ 48,239 $ 54,659 Depreciation and amortization $ 21,546 $ 11,109 $ 13,696 $ 21,168 $ — $ — $ 35,242 $ 32,277 LendingClub Bank LendingClub Corporation Intercompany Consolidated Total September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Assets Total cash and cash equivalents $ 1,283,549 $ 1,020,874 $ 93,060 $ 56,475 $ (68,839) $ (20,319) $ 1,307,770 $ 1,057,030 Restricted cash — — 48,102 75,409 (5,615) (7,955) 42,487 67,454 Securities available for sale at fair value 790,542 329,287 5,127 16,415 — — 795,669 345,702 Loans held for sale at fair value 362,789 110,400 — — — — 362,789 110,400 Loans and leases held for investment, net 4,886,782 4,705,302 — — — — 4,886,782 4,705,302 Loans held for investment at fair value 316,622 906,711 9,677 19,227 — — 326,299 925,938 Retail and certificate loans held for investment at fair value — — 18,118 55,425 — — 18,118 55,425 Property, equipment and software, net 139,269 102,274 20,499 34,199 — — 159,768 136,473 Investment in subsidiary — — 813,436 755,319 (813,436) (755,319) — — Goodwill 75,717 75,717 — — — — 75,717 75,717 Other assets 352,072 339,341 162,490 173,851 (17,610) (12,886) 496,952 500,306 Total assets 8,207,342 7,589,906 1,170,509 1,186,320 (905,500) (796,479) 8,472,351 7,979,747 Liabilities and Equity Total deposits 7,074,717 6,420,827 — — (74,454) (28,274) 7,000,263 6,392,553 Borrowings 7,361 64,154 3,356 10,704 — — 10,717 74,858 Retail notes, certificates and secured borrowings at fair value — — 18,118 55,425 — — 18,118 55,425 Other liabilities 136,543 189,185 116,101 116,318 (17,610) (12,886) 235,034 292,617 Total liabilities 7,218,621 6,674,166 137,575 182,447 (92,064) (41,160) 7,264,132 6,815,453 Total equity 988,721 915,740 1,032,934 1,003,873 (813,436) (755,319) 1,208,219 1,164,294 Total liabilities and equity $ 8,207,342 $ 7,589,906 $ 1,170,509 $ 1,186,320 $ (905,500) $ (796,479) $ 8,472,351 $ 7,979,747 |
Marketplace Revenue - Component
Marketplace Revenue - Components of Marketplace Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Gain on sales of loans | $ 8,572 | $ 23,554 | $ 35,918 | $ 76,983 |
Net fair value adjustments | (41,366) | (619) | (80,222) | 24,277 |
Total marketplace revenue | 60,886 | 173,837 | 239,303 | 560,187 |
Origination fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 60,912 | 127,142 | 202,444 | 398,487 |
Servicing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 32,768 | $ 23,760 | $ 81,163 | $ 60,440 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Basic EPS: | |||||
Net income attributable to stockholders | $ 5,008 | $ 43,198 | $ 28,784 | $ 266,094 | |
Weighted-average common shares – Basic (in shares) | [1] | 109,071,180 | 104,215,594 | 107,966,544 | 102,838,645 |
Basic EPS ($ per share) | [1] | $ 0.05 | $ 0.41 | $ 0.27 | $ 2.59 |
Diluted EPS: | |||||
Net income attributable to stockholders | $ 5,008 | $ 43,198 | $ 28,784 | $ 266,094 | |
Weighted-average common shares – Diluted (in shares) | [1] | 109,073,194 | 105,853,938 | 107,969,920 | 104,116,240 |
Diluted EPS ($ per share) | [1] | $ 0.05 | $ 0.41 | $ 0.27 | $ 2.56 |
[1]See “ Notes to Condensed Consolidated Financial Statements – Note 3. Earnings Per Share ” for additional information. |
Securities Available for Sale -
Securities Available for Sale - Amortized Cost/Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 872,341 | $ 399,668 |
Gross Unrealized Gains | 4,574 | 9,424 |
Gross Unrealized Losses | (81,246) | (63,390) |
Fair Value | 795,669 | 345,702 |
Assets pledged as collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 341,600 | 319,000 |
Senior asset-backed securities related to Structured Program transactions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 413,850 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1,453) | |
Fair Value | 412,397 | |
U.S. agency residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 263,568 | 255,675 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (52,331) | (41,248) |
Fair Value | 211,237 | 214,427 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 93,451 | 90,447 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (18,372) | (16,053) |
Fair Value | 75,079 | 74,394 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 43,162 | 26,988 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7,013) | (4,470) |
Fair Value | 36,149 | 22,518 |
Other asset-backed securities related to Structured Program transactions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 26,831 | |
Gross Unrealized Gains | 4,540 | |
Gross Unrealized Losses | (309) | |
Fair Value | 31,062 | |
Restricted investments | 24,800 | |
Asset-backed securities related to Structured Program transactions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,322 | |
Gross Unrealized Gains | 9,395 | |
Gross Unrealized Losses | 0 | |
Fair Value | 17,717 | |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,217 | 14,959 |
Gross Unrealized Gains | 34 | 29 |
Gross Unrealized Losses | (787) | (785) |
Fair Value | 27,464 | 14,203 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,262 | 3,277 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (981) | (834) |
Fair Value | $ 2,281 | $ 2,443 |
Securities Available for Sale_2
Securities Available for Sale - Continuous Loss (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 448,288 | $ 168,722 |
Unrealized Losses, Less than 12 months | (4,128) | (23,346) |
Fair Value, 12 months or longer | 292,677 | 156,091 |
Unrealized Losses, 12 months or longer | (77,118) | (40,044) |
Fair Value | 740,965 | 324,813 |
Unrealized Losses | (81,246) | (63,390) |
Senior asset-backed securities related to Structured Program transactions | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 372,388 | |
Unrealized Losses, Less than 12 months | (1,453) | |
Fair Value, 12 months or longer | 0 | |
Unrealized Losses, 12 months or longer | 0 | |
Fair Value | 372,388 | |
Unrealized Losses | (1,453) | |
U.S. agency residential mortgage-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 21,064 | 111,843 |
Unrealized Losses, Less than 12 months | (892) | (15,831) |
Fair Value, 12 months or longer | 190,173 | 102,584 |
Unrealized Losses, 12 months or longer | (51,439) | (25,417) |
Fair Value | 211,237 | 214,427 |
Unrealized Losses | (52,331) | (41,248) |
U.S. agency securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 2,960 | 50,352 |
Unrealized Losses, Less than 12 months | (40) | (7,213) |
Fair Value, 12 months or longer | 72,119 | 24,042 |
Unrealized Losses, 12 months or longer | (18,332) | (8,840) |
Fair Value | 75,079 | 74,394 |
Unrealized Losses | (18,372) | (16,053) |
Mortgage-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 16,278 | 2,441 |
Unrealized Losses, Less than 12 months | (1,387) | (229) |
Fair Value, 12 months or longer | 19,871 | 20,077 |
Unrealized Losses, 12 months or longer | (5,626) | (4,241) |
Fair Value | 36,149 | 22,518 |
Unrealized Losses | (7,013) | (4,470) |
Other asset-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 14,112 | 4,086 |
Unrealized Losses, Less than 12 months | (47) | (73) |
Fair Value, 12 months or longer | 8,233 | 6,945 |
Unrealized Losses, 12 months or longer | (740) | (712) |
Fair Value | 22,345 | 11,031 |
Unrealized Losses | (787) | (785) |
Other asset-backed securities related to Structured Program transactions | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 21,486 | |
Unrealized Losses, Less than 12 months | (309) | |
Fair Value, 12 months or longer | 0 | |
Unrealized Losses, 12 months or longer | 0 | |
Fair Value | 21,486 | |
Unrealized Losses | (309) | |
Municipal securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 0 | 0 |
Unrealized Losses, Less than 12 months | 0 | 0 |
Fair Value, 12 months or longer | 2,281 | 2,443 |
Unrealized Losses, 12 months or longer | (981) | (834) |
Fair Value | 2,281 | 2,443 |
Unrealized Losses | $ (981) | $ (834) |
Securities Available for Sale_3
Securities Available for Sale - Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Amortized cost, due within 1 year | $ 230 | |
Amortized cost, due after 1 year through 5 years | 451,670 | |
Amortized cost, due after 5 years through 10 years | 42,249 | |
Amortized cost, due after 10 years | 378,192 | |
Amortized Cost | 872,341 | $ 399,668 |
Fair Value | ||
Fair value, due within 1 year | 230 | |
Fair value, due after 1 year through 5 years | 453,798 | |
Fair value, due after 5 years through 10 years | 39,159 | |
Fair value, due after 10 years | 302,482 | |
Fair Value | $ 795,669 | 345,702 |
Weighted-average yield, due within 1 year | 46.15% | |
Weighted-average yield, due after 1 year through 5 years | 3.17% | |
Weighted-average yield, due after 5 years through 10 years | 4.27% | |
Weighted-average yield, due after 10 years | 2.80% | |
Weighted-average yield | 3.07% | |
Senior asset-backed securities related to Structured Program transactions | ||
Amortized Cost | ||
Amortized cost, due within 1 year | $ 230 | |
Amortized cost, due after 1 year through 5 years | 413,620 | |
Amortized Cost | 413,850 | |
Fair Value | ||
Fair value, due within 1 year | 230 | |
Fair value, due after 1 year through 5 years | 412,167 | |
Fair Value | 412,397 | |
Other asset-backed securities related to Structured Program transactions | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 26,831 | |
Amortized Cost | 26,831 | |
Fair Value | ||
Fair value, due after 1 year through 5 years | 31,062 | |
Fair Value | 31,062 | |
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 | 18,848 | |
Amortized cost, due after 10 years | 65,603 | |
Amortized Cost | 93,451 | 90,447 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 8,567 | |
Fair value, due after 5 years through 10 years | 16,768 | |
Fair value, due after 10 years | 49,744 | |
Fair Value | 75,079 | 74,394 |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 1,774 | |
Amortized cost, due after 5 years through 10 years | 2,036 | |
Amortized cost, due after 10 years | 39,352 | |
Amortized Cost | 43,162 | 26,988 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 1,556 | |
Fair value, due after 5 years through 10 years | 1,634 | |
Fair value, due after 10 years | 32,959 | |
Fair Value | 36,149 | 22,518 |
Other asset-backed securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 441 | |
Amortized cost, due after 5 years through 10 years | 15,567 | |
Amortized cost, due after 10 years | 12,209 | |
Amortized Cost | 28,217 | 14,959 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 443 | |
Fair value, due after 5 years through 10 years | 15,545 | |
Fair value, due after 10 years | 11,476 | |
Fair Value | 27,464 | 14,203 |
U.S. agency residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 4 | |
Amortized cost, due after 5 years through 10 years | 5,177 | |
Amortized cost, due after 10 years | 258,387 | |
Fair Value | ||
Fair value, due after 1 year through 5 years | 3 | |
Fair value, due after 5 years through 10 years | 4,696 | |
Fair value, due after 10 years | 206,538 | |
Fair Value | 211,237 | 214,427 |
Municipal securities | ||
Amortized Cost | ||
Amortized cost, due after 5 years through 10 years | 621 | |
Amortized cost, due after 10 years | 2,641 | |
Amortized Cost | 3,262 | 3,277 |
Fair Value | ||
Fair value, due after 5 years through 10 years | 516 | |
Fair value, due after 10 years | 1,765 | |
Fair Value | $ 2,281 | $ 2,443 |
Loans and Leases Held for Inv_3
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Narratives (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest | $ 34.3 | $ 27.9 |
Loans and Leases Held for Inv_4
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Schedule of Components of Portfolio Segment by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | $ 5,237,277 | $ 5,033,154 | ||||
Allowance for loan and lease losses | (350,495) | $ (355,163) | (327,852) | $ (303,201) | $ (243,260) | $ (144,389) |
Loans and leases held for investment, net | 4,886,782 | 4,705,302 | ||||
Loans pledged as collateral under the FRB discount window | $ 4,000,000 | $ 283,600 | ||||
Allowance Ratios | 6.70% | 6.50% | ||||
Assets pledged as collateral | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment, net | $ 511,200 | $ 156,200 | ||||
Consumer Portfolio Segment | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 4,535,363 | 4,260,608 | ||||
Allowance for loan and lease losses | (336,288) | (341,161) | (312,489) | (288,138) | (228,184) | (128,812) |
Loans and leases held for investment, net | $ 4,199,075 | $ 3,948,119 | ||||
Allowance Ratios | 7.40% | 7.30% | ||||
Consumer Portfolio Segment | Unsecured personal | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | $ 4,094,748 | $ 3,866,373 | ||||
Consumer Portfolio Segment | Residential mortgages | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 186,510 | 199,601 | ||||
Consumer Portfolio Segment | Secured consumer | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 254,105 | 194,634 | ||||
Commercial Portfolio Segment | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 701,914 | 772,546 | ||||
Allowance for loan and lease losses | (14,207) | $ (14,002) | (15,363) | $ (15,063) | $ (15,076) | $ (15,577) |
Loans and leases held for investment, net | $ 687,707 | $ 757,183 | ||||
Allowance Ratios | 2% | 2% | ||||
Commercial Portfolio Segment | Equipment finance | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | $ 125,289 | $ 160,319 | ||||
Commercial Portfolio Segment | Commercial real estate | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 373,246 | 373,501 | ||||
Commercial Portfolio Segment | Commercial and industrial | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | 203,379 | 238,726 | ||||
Commercial Portfolio Segment | Commercial and industrial loan, PPP | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans and leases held for investment | $ 7,600 | $ 67,000 |
Loans and Leases Held for Inv_5
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan and lease losses, beginning of period | $ 355,163 | $ 243,260 | $ 327,852 | $ 144,389 |
Credit loss expense for loans and leases held for investment | 64,127 | 82,599 | 201,167 | 204,880 |
Charge-offs | (74,178) | (23,728) | (191,010) | (48,669) |
Recoveries | 5,383 | 1,070 | 12,486 | 2,601 |
Allowance for loan and lease losses, end of period | 350,495 | 303,201 | 350,495 | 303,201 |
Unfunded Loan Commitment | ||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Reserve for unfunded lending commitments, beginning of period | 2,017 | 2,025 | 1,878 | 1,231 |
Credit loss expense for unfunded lending commitments | 352 | 140 | 491 | 934 |
Reserve for unfunded lending commitments, end of period | 2,369 | 2,165 | 2,369 | 2,165 |
Unfunded Loan Commitment, Commitments To Extend Credit | ||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Reserve for unfunded lending commitments, beginning of period | 138,000 | |||
Reserve for unfunded lending commitments, end of period | 89,500 | 144,000 | 89,500 | 144,000 |
Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan and lease losses, beginning of period | 341,161 | 228,184 | 312,489 | 128,812 |
Credit loss expense for loans and leases held for investment | 63,733 | 81,935 | 201,291 | 203,967 |
Charge-offs | (73,644) | (22,944) | (189,201) | (46,668) |
Recoveries | 5,038 | 963 | 11,709 | 2,027 |
Allowance for loan and lease losses, end of period | 336,288 | 288,138 | 336,288 | 288,138 |
Consumer Portfolio Segment | Unfunded Loan Commitment | ||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Reserve for unfunded lending commitments, beginning of period | 0 | 136 | 18 | 0 |
Credit loss expense for unfunded lending commitments | 0 | (78) | (18) | 58 |
Reserve for unfunded lending commitments, end of period | 0 | 58 | 0 | 58 |
Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan and lease losses, beginning of period | 14,002 | 15,076 | 15,363 | 15,577 |
Credit loss expense for loans and leases held for investment | 394 | 664 | (124) | 913 |
Charge-offs | (534) | (784) | (1,809) | (2,001) |
Recoveries | 345 | 107 | 777 | 574 |
Allowance for loan and lease losses, end of period | 14,207 | 15,063 | 14,207 | 15,063 |
Commercial Portfolio Segment | Unfunded Loan Commitment | ||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Reserve for unfunded lending commitments, beginning of period | 2,017 | 1,889 | 1,860 | 1,231 |
Credit loss expense for unfunded lending commitments | 352 | 218 | 509 | 876 |
Reserve for unfunded lending commitments, end of period | $ 2,369 | $ 2,107 | $ 2,369 | $ 2,107 |
Loans and Leases Held for Inv_6
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Gross Charge-Offs by Origination Year (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Term Loans and Leases by Origination Year | ||||
Year 1 | $ 7,823 | |||
Year 2 | 108,503 | |||
Year 3 | 74,244 | |||
Year 4 | 0 | |||
Year 5 | 318 | |||
Prior | 122 | |||
Total | $ 74,178 | $ 23,728 | 191,010 | $ 48,669 |
Consumer Portfolio Segment | ||||
Term Loans and Leases by Origination Year | ||||
Year 1 | 7,823 | |||
Year 2 | 108,503 | |||
Year 3 | 72,875 | |||
Year 4 | 0 | |||
Year 5 | 0 | |||
Prior | 0 | |||
Total | 73,644 | 22,944 | 189,201 | 46,668 |
Consumer Portfolio Segment | Unsecured personal | ||||
Term Loans and Leases by Origination Year | ||||
Year 1 | 7,730 | |||
Year 2 | 106,835 | |||
Year 3 | 72,330 | |||
Year 4 | 0 | |||
Year 5 | 0 | |||
Prior | 0 | |||
Total | 186,895 | |||
Consumer Portfolio Segment | Residential mortgages | ||||
Term Loans and Leases by Origination Year | ||||
Year 1 | 0 | |||
Year 2 | 0 | |||
Year 3 | 0 | |||
Year 4 | 0 | |||
Year 5 | 0 | |||
Prior | 0 | |||
Total | 0 | |||
Consumer Portfolio Segment | Secured consumer | ||||
Term Loans and Leases by Origination Year | ||||
Year 1 | 93 | |||
Year 2 | 1,668 | |||
Year 3 | 545 | |||
Year 4 | 0 | |||
Year 5 | 0 | |||
Prior | 0 | |||
Total | 2,306 | |||
Commercial Portfolio Segment | ||||
Term Loans and Leases by Origination Year | ||||
Year 1 | 0 | |||
Year 2 | 0 | |||
Year 3 | 1,369 | |||
Year 4 | 0 | |||
Year 5 | 318 | |||
Prior | 122 | |||
Total | $ 534 | $ 784 | 1,809 | $ 2,001 |
Commercial Portfolio Segment | Equipment finance | ||||
Term Loans and Leases by Origination Year | ||||
Year 1 | 0 | |||
Year 2 | 0 | |||
Year 3 | 0 | |||
Year 4 | 0 | |||
Year 5 | 0 | |||
Prior | 0 | |||
Total | 0 | |||
Commercial Portfolio Segment | Commercial real estate | ||||
Term Loans and Leases by Origination Year | ||||
Year 1 | 0 | |||
Year 2 | 0 | |||
Year 3 | 0 | |||
Year 4 | 0 | |||
Year 5 | 0 | |||
Prior | 0 | |||
Total | 0 | |||
Commercial Portfolio Segment | Commercial and industrial | ||||
Term Loans and Leases by Origination Year | ||||
Year 1 | 0 | |||
Year 2 | 0 | |||
Year 3 | 1,369 | |||
Year 4 | 0 | |||
Year 5 | 318 | |||
Prior | 122 | |||
Total | $ 1,809 |
Loans and Leases Held for Inv_7
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Term Loans and Leases by Origination Year | ||
Total | $ 5,237,277 | $ 5,033,154 |
Loans and leases held for investment at amortized cost | ||
Term Loans and Leases by Origination Year | ||
Portfolio layer method basis adjustment - increase (decrease) | (3,020) | |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 1,630,506 | 3,064,021 |
Year 2 | 2,166,634 | 1,102,517 |
Year 3 | 657,314 | 31,465 |
Year 4 | 30,204 | 24,226 |
Year 5 | 22,884 | 4,546 |
Prior | 30,841 | 33,833 |
Total | 4,538,383 | 4,260,608 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 1,516,076 | 2,861,207 |
Year 2 | 2,006,552 | 1,005,166 |
Year 3 | 575,140 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 4,097,768 | 3,866,373 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 49,721 |
Year 2 | 48,934 | 58,353 |
Year 3 | 56,128 | 31,465 |
Year 4 | 30,204 | 21,683 |
Year 5 | 20,403 | 4,546 |
Prior | 30,841 | 33,833 |
Total | 186,510 | 199,601 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 114,430 | 153,093 |
Year 2 | 111,148 | 38,998 |
Year 3 | 26,046 | 0 |
Year 4 | 0 | 2,543 |
Year 5 | 2,481 | 0 |
Prior | 0 | 0 |
Total | 254,105 | 194,634 |
Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 78,296 | 220,905 |
Year 2 | 226,531 | 202,382 |
Year 3 | 124,069 | 111,040 |
Year 4 | 71,462 | 91,253 |
Year 5 | 77,064 | 57,687 |
Prior | 124,492 | 89,279 |
Total | 701,914 | 772,546 |
Commercial Portfolio Segment | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 169,833 | 189,756 |
Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 3,266 | 59,227 |
Year 2 | 51,497 | 40,312 |
Year 3 | 31,452 | 25,873 |
Year 4 | 15,709 | 19,544 |
Year 5 | 11,835 | 11,919 |
Prior | 11,530 | 3,444 |
Total | 125,289 | 160,319 |
Commercial Portfolio Segment | Equipment finance | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Equipment finance | Pass | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 3,266 | 59,227 |
Year 2 | 36,438 | 38,218 |
Year 3 | 29,017 | 25,014 |
Year 4 | 9,088 | 15,785 |
Year 5 | 8,963 | 11,880 |
Prior | 8,797 | 3,444 |
Total | 95,569 | 153,568 |
Commercial Portfolio Segment | Equipment finance | Pass | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Equipment finance | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 15,059 | 2,094 |
Year 3 | 2,435 | 0 |
Year 4 | 6,085 | 3,759 |
Year 5 | 2,872 | 0 |
Prior | 0 | 0 |
Total | 26,451 | 5,853 |
Commercial Portfolio Segment | Equipment finance | Special mention | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Equipment finance | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 859 |
Year 4 | 536 | 0 |
Year 5 | 0 | 39 |
Prior | 2,733 | 0 |
Total | 3,269 | 898 |
Commercial Portfolio Segment | Equipment finance | Substandard | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
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 |
Total | 0 | 0 |
Commercial Portfolio Segment | Equipment finance | Doubtful | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
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 |
Total | 0 | 0 |
Commercial Portfolio Segment | Equipment finance | Loss | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 39,237 | 100,602 |
Year 2 | 98,286 | 53,445 |
Year 3 | 43,331 | 55,912 |
Year 4 | 43,382 | 53,737 |
Year 5 | 52,287 | 39,633 |
Prior | 96,723 | 70,172 |
Total | 373,246 | 373,501 |
Commercial Portfolio Segment | Commercial real estate | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 43,667 | 40,693 |
Commercial Portfolio Segment | Commercial real estate | Pass | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 39,237 | 100,602 |
Year 2 | 94,645 | 53,445 |
Year 3 | 35,078 | 47,497 |
Year 4 | 43,382 | 52,834 |
Year 5 | 52,066 | 35,992 |
Prior | 76,254 | 60,976 |
Total | 340,662 | 351,346 |
Commercial Portfolio Segment | Commercial real estate | Pass | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 33,681 | 40,693 |
Commercial Portfolio Segment | Commercial real estate | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 8,415 |
Year 4 | 0 | 260 |
Year 5 | 0 | 1,237 |
Prior | 9,362 | 405 |
Total | 9,362 | 10,317 |
Commercial Portfolio Segment | Commercial real estate | Special mention | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 3,641 | 0 |
Year 3 | 6,738 | 0 |
Year 4 | 0 | 643 |
Year 5 | 221 | 2,404 |
Prior | 10,571 | 8,215 |
Total | 21,171 | 11,262 |
Commercial Portfolio Segment | Commercial real estate | Substandard | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 8,515 | 0 |
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 |
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | Doubtful | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
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 | 1,515 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 536 | 576 |
Total | 2,051 | 576 |
Commercial Portfolio Segment | Commercial real estate | Loss | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 1,471 | 0 |
Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 35,793 | 61,076 |
Year 2 | 76,748 | 108,625 |
Year 3 | 49,286 | 29,255 |
Year 4 | 12,371 | 17,972 |
Year 5 | 12,942 | 6,135 |
Prior | 16,239 | 15,663 |
Total | 203,379 | 238,726 |
Commercial Portfolio Segment | Commercial and industrial | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 126,166 | 149,063 |
Commercial Portfolio Segment | Commercial and industrial | Pass | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 35,793 | 61,076 |
Year 2 | 64,912 | 99,264 |
Year 3 | 42,901 | 24,726 |
Year 4 | 10,287 | 13,866 |
Year 5 | 9,136 | 5,174 |
Prior | 11,054 | 10,831 |
Total | 174,083 | 214,937 |
Commercial Portfolio Segment | Commercial and industrial | Pass | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 107,266 | 141,858 |
Commercial Portfolio Segment | Commercial and industrial | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 10,734 | 0 |
Year 3 | 1,252 | 0 |
Year 4 | 1,297 | 483 |
Year 5 | 115 | 163 |
Prior | 385 | 455 |
Total | 13,783 | 1,101 |
Commercial Portfolio Segment | Commercial and industrial | Special mention | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 9,469 | 44 |
Commercial Portfolio Segment | Commercial and industrial | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 1,102 | 9,361 |
Year 3 | 5,133 | 4,529 |
Year 4 | 787 | 3,623 |
Year 5 | 3,691 | 797 |
Prior | 3,253 | 2,820 |
Total | 13,966 | 21,130 |
Commercial Portfolio Segment | Commercial and industrial | Substandard | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 7,986 | 5,716 |
Commercial Portfolio Segment | Commercial and industrial | 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 | 286 | 286 |
Total | 286 | 286 |
Commercial Portfolio Segment | Commercial and industrial | Doubtful | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 216 | 216 |
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 | 0 |
Year 5 | 0 | 1 |
Prior | 1,261 | 1,271 |
Total | 1,261 | 1,272 |
Commercial Portfolio Segment | Commercial and industrial | Loss | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 1,229 | 1,229 |
Current | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 1,500,780 | 2,835,460 |
Year 2 | 1,954,955 | 977,224 |
Year 3 | 552,491 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 4,008,226 | 3,812,684 |
Current | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 49,721 |
Year 2 | 48,934 | 58,353 |
Year 3 | 56,128 | 31,465 |
Year 4 | 30,204 | 21,683 |
Year 5 | 20,403 | 4,546 |
Prior | 30,678 | 33,248 |
Total | 186,347 | 199,016 |
Current | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 114,186 | 151,725 |
Year 2 | 109,327 | 38,076 |
Year 3 | 25,434 | 0 |
Year 4 | 0 | 2,543 |
Year 5 | 2,481 | 0 |
Prior | 0 | 0 |
Total | 251,428 | 192,344 |
Past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 12,753 | 5,776 |
Past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 3,150 | 4,031 |
Past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 6,545 | 102 |
Past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 3,058 | 1,643 |
30-59 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 6,728 | 11,149 |
Year 2 | 18,780 | 9,867 |
Year 3 | 7,968 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 33,476 | 21,016 |
30-59 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | 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 | 0 |
Total | 0 | 0 |
30-59 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 199 | 1,017 |
Year 2 | 1,188 | 703 |
Year 3 | 291 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 1,678 | 1,720 |
30-59 days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 6,007 | 3,172 |
30-59 days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 3,172 |
30-59 days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 4,493 | 0 |
30-59 days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 1,514 | 0 |
60-89 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 4,159 | 7,785 |
Year 2 | 15,830 | 8,633 |
Year 3 | 6,679 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 26,668 | 16,418 |
60-89 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | 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 | 254 |
Total | 0 | 254 |
60-89 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 45 | 235 |
Year 2 | 484 | 147 |
Year 3 | 261 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 790 | 382 |
60-89 days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 3,613 | 102 |
60-89 days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 3,150 | 0 |
60-89 days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 434 | 102 |
60-89 days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 29 | 0 |
90 or more days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 4,409 | 6,813 |
Year 2 | 16,987 | 9,442 |
Year 3 | 8,002 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 29,398 | 16,255 |
90 or more days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | 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 | 163 | 331 |
Total | 163 | 331 |
90 or more days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 116 |
Year 2 | 149 | 72 |
Year 3 | 60 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 209 | 188 |
90 or more days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 3,133 | 2,502 |
90 or more days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 859 |
90 or more days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 1,618 | 0 |
90 or more days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | $ 1,515 | $ 1,643 |
Loans and Leases Held for Inv_8
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Nonaccrual and Past Due Table (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 49,999 | $ 34,827 |
Nonaccrual with no related ACL | $ 4,639 | $ 2,617 |
Nonaccrual Ratios | 1% | 0.70% |
Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 29,923 | $ 16,774 |
Nonaccrual with no related ACL | $ 316 | $ 331 |
Nonaccrual Ratios | 0.70% | 0.40% |
Consumer Portfolio Segment | Unsecured personal | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 29,398 | $ 16,255 |
Nonaccrual with no related ACL | 0 | 0 |
Consumer Portfolio Segment | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 316 | 331 |
Nonaccrual with no related ACL | 316 | 331 |
Consumer Portfolio Segment | Secured consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 209 | 188 |
Nonaccrual with no related ACL | 0 | 0 |
Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 20,076 | 18,053 |
Nonaccrual with no related ACL | $ 4,323 | $ 2,286 |
Nonaccrual Ratios | 2.90% | 2.30% |
Commercial Portfolio Segment | Loans guaranteed by the Small Business Association | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 12,700 | $ 4,900 |
Commercial Portfolio Segment | Equipment finance | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 2,733 | 898 |
Nonaccrual with no related ACL | 0 | 39 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 10,113 | 1,018 |
Nonaccrual with no related ACL | 2,431 | 1,018 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 7,230 | 16,137 |
Nonaccrual with no related ACL | $ 1,892 | $ 1,229 |
Securitizations and Variable _3
Securitizations and Variable Interest Entities - Summary of Select Information Related to VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Restricted cash | [1] | $ 42,487 | $ 67,454 |
Total securities available for sale | 795,669 | 345,702 | |
Loans held for investment at fair value | 4,886,782 | 4,705,302 | |
Retail and certificate loans held for investment at fair value | [1] | 18,118 | 55,425 |
Other assets | [1] | 496,952 | 500,306 |
Total assets | 8,472,351 | 7,979,747 | |
Liabilities: | |||
Borrowings | [1] | 10,717 | 74,858 |
Retail notes, certificates and secured borrowings at fair value | 18,118 | 55,425 | |
Other liabilities | [1] | 235,034 | 292,617 |
Total liabilities | 7,264,132 | 6,815,453 | |
Total | |||
Assets | |||
Restricted cash | 3,813 | 8,048 | |
Total securities available for sale | 443,460 | 17,717 | |
Loans held for investment at fair value | 1,095 | 3,994 | |
Retail and certificate loans held for investment at fair value | 637 | 1,946 | |
Other assets | 17,180 | 10,670 | |
Total assets | 466,185 | 42,375 | |
Liabilities: | |||
Borrowings | 3,329 | 8,085 | |
Retail notes, certificates and secured borrowings at fair value | 637 | 1,946 | |
Other liabilities | 985 | 29 | |
Total liabilities | 4,951 | 10,060 | |
Total net assets (maximum loss exposure) | 461,234 | 32,315 | |
Consolidated | |||
Assets | |||
Restricted cash | 3,813 | 8,048 | |
Total securities available for sale | 0 | 0 | |
Loans held for investment at fair value | 1,095 | 3,994 | |
Retail and certificate loans held for investment at fair value | 637 | 1,946 | |
Other assets | 19 | 206 | |
Total assets | 5,564 | 14,194 | |
Liabilities: | |||
Borrowings | 3,329 | 8,085 | |
Retail notes, certificates and secured borrowings at fair value | 637 | 1,946 | |
Other liabilities | 5 | 29 | |
Total liabilities | 3,971 | 10,060 | |
Total net assets (maximum loss exposure) | 1,593 | 4,134 | |
Unconsolidated | |||
Assets | |||
Restricted cash | 0 | 0 | |
Total securities available for sale | 443,460 | 17,717 | |
Loans held for investment at fair value | 0 | 0 | |
Retail and certificate loans held for investment at fair value | 0 | 0 | |
Other assets | 17,161 | 10,464 | |
Total assets | 460,621 | 28,181 | |
Liabilities: | |||
Borrowings | 0 | 0 | |
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |
Other liabilities | 980 | 0 | |
Total liabilities | 980 | 0 | |
Total net assets (maximum loss exposure) | $ 459,641 | $ 28,181 | |
[1]Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Condensed Consolidated Financial Statements – Note 6. Securitizations and Variable Interest Entities .” |
Securitizations and Variable _4
Securitizations and Variable Interest Entities - Summary of Activity Related to Unconsolidated VIEs (Details) - Unconsolidated - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair value of consideration received: | ||||
Cash | $ 40,994 | $ 0 | $ 59,045 | $ 5,320 |
Asset-backed securities retained | 301,602 | 0 | 454,831 | 2,180 |
Other assets (liabilities) | 3,790 | 0 | 6,089 | (3,794) |
Total consideration | 346,386 | 0 | 519,965 | 3,706 |
Deconsolidation of debt | 0 | 0 | 0 | 36,072 |
Fair value of loans sold | (343,142) | 0 | (514,701) | (39,519) |
Gain on sales of loans | 3,244 | 0 | 5,264 | 259 |
Cash proceeds from continuing involvement: | ||||
Servicing and other administrative fees | 1,234 | 1,782 | 3,110 | 7,294 |
Interest received on asset-backed securities retained | $ 5,142 | $ 1,294 | $ 8,736 | $ 6,373 |
Securitizations and Variable _5
Securitizations and Variable Interest Entities - Narratives (Details) - Off-balance Sheet Loans - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Principal derecognized from loans securitized or sold | $ 678.5 | $ 433.5 |
Off-balance sheet loans, principal amount outstanding, 31 days or more past due | $ 7.7 | $ 14.8 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Loans held for sale at fair value | $ 362,789 | $ 110,400 | |
Loans held for investment at fair value | [1] | 326,299 | 925,938 |
Retail and certificate loans held for investment at fair value | [1] | 18,118 | 55,425 |
Securities available for sale: | |||
Total securities available for sale | 795,669 | 345,702 | |
Servicing assets | 81,760 | 84,308 | |
Other assets | 8,965 | 5,099 | |
Total assets | 1,593,600 | 1,526,872 | |
Liabilities: | |||
Borrowings | 3,329 | 8,085 | |
Retail notes, certificates and secured borrowings | 18,118 | 55,425 | |
Other liabilities | 10,096 | 8,583 | |
Total liabilities | 31,543 | 72,093 | |
Senior asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 412,397 | ||
U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 211,237 | 214,427 | |
U.S. agency securities | |||
Securities available for sale: | |||
Total securities available for sale | 75,079 | 74,394 | |
Mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 36,149 | 22,518 | |
Other asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 31,062 | ||
Other asset-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 27,464 | 14,203 | |
Asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 17,717 | ||
Municipal securities | |||
Securities available for sale: | |||
Total securities available for sale | 2,281 | 2,443 | |
Level 1 Inputs | |||
Assets | |||
Loans held for sale at fair value | 0 | 0 | |
Loans held for investment at fair value | 0 | 0 | |
Retail and certificate loans held for investment at fair value | 0 | 0 | |
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Servicing assets | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities: | |||
Borrowings | 0 | 0 | |
Retail notes, certificates and secured borrowings | 0 | 0 | |
Other liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 Inputs | Senior asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 1 Inputs | U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 1 Inputs | U.S. agency securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 1 Inputs | Mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 1 Inputs | Other asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 1 Inputs | Other asset-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 1 Inputs | Asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 1 Inputs | Municipal securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 2 Inputs | |||
Assets | |||
Loans held for sale at fair value | 0 | 0 | |
Loans held for investment at fair value | 0 | 0 | |
Retail and certificate loans held for investment at fair value | 0 | 0 | |
Securities available for sale: | |||
Total securities available for sale | 352,210 | 333,233 | |
Servicing assets | 0 | 0 | |
Other assets | 8,965 | 0 | |
Total assets | 361,175 | 333,233 | |
Liabilities: | |||
Borrowings | 0 | 0 | |
Retail notes, certificates and secured borrowings | 0 | 0 | |
Other liabilities | 5,482 | 0 | |
Total liabilities | 5,482 | 0 | |
Level 2 Inputs | Senior asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 2 Inputs | U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 211,237 | 214,427 | |
Level 2 Inputs | U.S. agency securities | |||
Securities available for sale: | |||
Total securities available for sale | 75,079 | 74,394 | |
Level 2 Inputs | Mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 36,149 | 22,518 | |
Level 2 Inputs | Other asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 2 Inputs | Other asset-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 27,464 | 14,203 | |
Level 2 Inputs | Asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 5,248 | ||
Level 2 Inputs | Municipal securities | |||
Securities available for sale: | |||
Total securities available for sale | 2,281 | 2,443 | |
Level 3 Inputs | |||
Assets | |||
Loans held for sale at fair value | 362,789 | 110,400 | |
Loans held for investment at fair value | 326,299 | 925,938 | |
Retail and certificate loans held for investment at fair value | 18,118 | 55,425 | |
Securities available for sale: | |||
Total securities available for sale | 443,459 | 12,469 | |
Servicing assets | 81,760 | 84,308 | |
Other assets | 0 | 5,099 | |
Total assets | 1,232,425 | 1,193,639 | |
Liabilities: | |||
Borrowings | 3,329 | 8,085 | |
Retail notes, certificates and secured borrowings | 18,118 | 55,425 | |
Other liabilities | 4,614 | 8,583 | |
Total liabilities | 26,061 | 72,093 | |
Level 3 Inputs | Senior asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 412,397 | ||
Level 3 Inputs | U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 3 Inputs | U.S. agency securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 3 Inputs | Mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 3 Inputs | Other asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 31,062 | ||
Level 3 Inputs | Other asset-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 3 Inputs | Asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 12,469 | ||
Level 3 Inputs | Municipal securities | |||
Securities available for sale: | |||
Total securities available for sale | $ 0 | $ 0 | |
[1]Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Condensed Consolidated Financial Statements – Note 6. Securitizations and Variable Interest Entities .” |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.62% |
Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.62% |
Level 3 Inputs | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.62% |
Discount rates | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.077 | |
Discount rates | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.077 | |
Discount rates | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.077 | |
Discount rates | Level 3 Inputs | Minimum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.088 | |
Discount rates | Level 3 Inputs | Minimum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.80% | |
Discount rates | Level 3 Inputs | Minimum | Loans Held for Investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.50% | 8.80% |
Discount rates | Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.70% | 7.50% |
Discount rates | Level 3 Inputs | Maximum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.112 | |
Discount rates | Level 3 Inputs | Maximum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 11.20% | |
Discount rates | Level 3 Inputs | Maximum | Loans Held for Investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 16.50% | 17.10% |
Discount rates | Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 17.30% | 16.40% |
Discount rates | Level 3 Inputs | Weighted- Average | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.095 | |
Discount rates | Level 3 Inputs | Weighted- Average | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 9.60% | |
Discount rates | Level 3 Inputs | Weighted- Average | Loans Held for Investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 12.80% | 12.70% |
Discount rates | Level 3 Inputs | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 11.60% | 10.10% |
Net cumulative expected loss rates | Level 3 Inputs | Minimum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.036 | |
Net cumulative expected loss rates | Level 3 Inputs | Minimum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 3.50% | |
Net cumulative expected loss rates | Level 3 Inputs | Minimum | Loans Held for Investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 2.50% | 2.10% |
Net cumulative expected loss rates | Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 3.50% | 2.10% |
Net cumulative expected loss rates | Level 3 Inputs | Maximum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.230 | |
Net cumulative expected loss rates | Level 3 Inputs | Maximum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 23.40% | |
Net cumulative expected loss rates | Level 3 Inputs | Maximum | Loans Held for Investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 11% | 9.80% |
Net cumulative expected loss rates | Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 37.70% | 36.70% |
Net cumulative expected loss rates | Level 3 Inputs | Weighted- Average | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.093 | |
Net cumulative expected loss rates | Level 3 Inputs | Weighted- Average | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 10.90% | |
Net cumulative expected loss rates | Level 3 Inputs | Weighted- Average | Loans Held for Investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 7.10% | 5.70% |
Net cumulative expected loss rates | Level 3 Inputs | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 15.60% | 15.60% |
Cumulative expected prepayment rates | Level 3 Inputs | Minimum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.277 | |
Cumulative expected prepayment rates | Level 3 Inputs | Minimum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 27.70% | |
Cumulative expected prepayment rates | Level 3 Inputs | Minimum | Loans Held for Investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 20.60% | 26.20% |
Cumulative expected prepayment rates | Level 3 Inputs | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 18.50% | 15.80% |
Cumulative expected prepayment rates | Level 3 Inputs | Maximum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.373 | |
Cumulative expected prepayment rates | Level 3 Inputs | Maximum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 37.30% | |
Cumulative expected prepayment rates | Level 3 Inputs | Maximum | Loans Held for Investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 28.50% | 35.30% |
Cumulative expected prepayment rates | Level 3 Inputs | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 44.60% | 47.20% |
Cumulative expected prepayment rates | Level 3 Inputs | Weighted- Average | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.327 | |
Cumulative expected prepayment rates | Level 3 Inputs | Weighted- Average | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 32.50% | |
Cumulative expected prepayment rates | Level 3 Inputs | Weighted- Average | Loans Held for Investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 25.20% | 30.80% |
Cumulative expected prepayment rates | Level 3 Inputs | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 32.70% | 35.90% |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Sensitivity of Fair Value of Loans Held for Sale (Details) - Loans Held For Sale - Fair Value, Measurements, Recurring $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans held for sale at fair value | $ 362,789 |
Discount rates, impact of 100 basis point increase | (4,628) |
Discount rates, impact of 200 basis point increase | (9,160) |
Expected credit loss rates on underlying loans, 10% adverse change | (4,292) |
Expected credit loss rates on underlying loans, 20% adverse change | (8,530) |
Expected prepayment rates, 10% adverse change | (660) |
Expected prepayment rates, 20% adverse change | $ (1,244) |
Measurement Input, Expected Term | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Expected weighted-average life (in years) | 1 year 6 months |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Fair Value Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other asset-backed securities related to Structured Program transactions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized loss | $ (296) | $ (296) | ||
Senior asset-backed securities related to Structured Program transactions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning | 142,785 | 0 | ||
Originations and purchases, and additions | 284,704 | 429,384 | ||
Principal payments and cash received | (14,244) | (15,534) | ||
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized loss | (848) | (1,453) | ||
Ending | 412,397 | 412,397 | ||
Other asset-backed securities related to Structured Program transactions | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning | 16,980 | 12,469 | ||
Originations and purchases, and additions | 17,190 | 25,970 | ||
Principal payments and cash received | (2,812) | (7,081) | ||
Ending | 31,062 | 31,062 | ||
Loans Held For Sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning | 250,361 | 110,400 | ||
Originations and purchases, and additions | 1,107,771 | 3,584,918 | ||
Sales | (950,451) | (3,435,949) | ||
Principal payments and cash received | (22,372) | (33,972) | ||
Transfers | 3,299 | 195,106 | ||
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized loss | (25,819) | (57,714) | ||
Ending | 362,789 | 362,789 | ||
Loans Held for Investment | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning | 404,119 | $ 20,583 | 925,938 | $ 21,240 |
Originations and purchases, and additions | 112 | 136 | 4,149 | 150 |
Principal payments and cash received | (76,495) | (5,913) | (419,233) | (17,660) |
Transfers | (3,472) | 0 | (195,106) | 11,966 |
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized loss | 2,035 | 251 | 10,551 | (639) |
Ending | $ 326,299 | $ 15,057 | $ 326,299 | $ 15,057 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Sensitivity Analysis of Loans Held for Investment (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment at fair value | [1] | $ 326,299 | $ 925,938 |
Loans Held for Investment | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment at fair value | 326,299 | 925,938 | |
Discount rates, impact of 100 basis point increase | (2,633) | (7,471) | |
Discount rates, impact of 200 basis point increase | (5,226) | (14,830) | |
Expected credit loss rates on underlying loans, impact of 10% increase | (2,028) | (5,574) | |
Expected credit loss rates on underlying loans, impact of 20% increase | (3,985) | (11,307) | |
Expected prepayment rates, impact of 10% increase | (1,519) | (4,311) | |
Expected prepayment rates, impact of 20% increase | $ (2,636) | $ (7,480) | |
Loans Held for Investment | Fair Value, Measurements, Recurring | Measurement Input, Expected Term | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected weighted-average life (in years) | 10 months 24 days | 10 months 24 days | |
[1]Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Condensed Consolidated Financial Statements – Note 6. Securitizations and Variable Interest Entities .” |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Narratives (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 795,669 | $ 345,702 |
Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 443,459 | $ 12,469 |
Discount rates | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.077 | |
Discount rates | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.077 | |
Discount rates | Weighted- Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.077 | |
Senior asset-backed securities related to Structured Program transactions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 412,397 | |
Effect of 100 basis point increase in discount rate | 6,200 | |
Effect of 200 basis point increase in discount rate | 12,300 | |
Senior asset-backed securities related to Structured Program transactions | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 412,397 | |
Senior asset-backed securities related to Structured Program transactions | Weighted- Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected weighted-average life (in years) | 1 year 6 months |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities - Sensitivity Analysis of Debt Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Total securities available for sale | $ 795,669 | $ 345,702 |
Other asset-backed securities related to Structured Program transactions | ||
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Total securities available for sale | 31,062 | |
Discount rates | ||
100 basis point increase | (369) | |
200 basis point increase | (735) | |
Expected loss rates | ||
10% increase | (523) | |
20% increase | (1,058) | |
Expected prepayment rates | ||
10% increase | (190) | |
20% increase | $ (425) | |
Other asset-backed securities related to Structured Program transactions | Weighted- Average | ||
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Expected weighted-average life (in years) | 1 year 6 months |
Fair Value of Assets and Lia_10
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, 2023 | Dec. 31, 2022 | |
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% | $ (8,759) | $ (10,505) |
Servicing rate decrease by .1% | $ 8,759 | $ 10,505 |
Fair Value of Assets and Lia_11
Fair Value of Assets and Liabilities - Fair Value of Servicing Assets to Adverse Changes in Key Assumptions (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | $ 81,760 | $ 84,308 | ||||
Level 3 Inputs | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | 81,760 | 84,308 | ||||
Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | 81,760 | $ 85,387 | 84,308 | $ 86,518 | $ 79,427 | $ 67,726 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Servicing Assets | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | 81,760 | 84,308 | ||||
Discount rates, impact of 100 basis point increase | (695) | (726) | ||||
Discount rates, impact of 200 basis point increase | (1,391) | (1,451) | ||||
Expected credit loss on rates on underlying loans, 10% adverse change | (1,026) | (1,037) | ||||
Expected credit loss on rates on underlying loans, 20% adverse change | (2,051) | (2,074) | ||||
Expected prepayment rates, 10% adverse change | (1,720) | (1,994) | ||||
Expected prepayment rates, 20% adverse change | $ (3,440) | $ (3,989) |
Fair Value of Assets and Lia_12
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Assets, Changes in fair value due to: | ||||
Fair value at beginning of period | $ 84,308 | |||
Fair value at end of period | $ 81,760 | 81,760 | ||
Fair Value, Measurements, Recurring | ||||
Servicing Assets, Changes in fair value due to: | ||||
Fair value at beginning of period | 85,387 | $ 79,427 | 84,308 | $ 67,726 |
Issuances | 11,568 | 22,319 | 39,269 | 73,774 |
Change in fair value, included in Marketplace revenue | (12,100) | (14,689) | (41,750) | (52,702) |
Other net changes | (3,095) | (539) | (67) | (2,280) |
Fair value at end of period | $ 81,760 | $ 86,518 | $ 81,760 | $ 86,518 |
Fair Value of Assets and Lia_13
Fair Value of Assets and Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Other assets | $ 8,965 | $ 5,099 |
Total assets | 1,593,600 | 1,526,872 |
Liabilities: | ||
Borrowings | 3,329 | 8,085 |
Other liabilities | 10,096 | 8,583 |
Total liabilities | 31,543 | 72,093 |
Level 1 Inputs | ||
Assets | ||
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Borrowings | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 Inputs | ||
Assets | ||
Other assets | 8,965 | 0 |
Total assets | 361,175 | 333,233 |
Liabilities: | ||
Borrowings | 0 | 0 |
Other liabilities | 5,482 | 0 |
Total liabilities | 5,482 | 0 |
Level 3 Inputs | ||
Assets | ||
Other assets | 0 | 5,099 |
Total assets | 1,232,425 | 1,193,639 |
Liabilities: | ||
Borrowings | 3,329 | 8,085 |
Other liabilities | 4,614 | 8,583 |
Total liabilities | 26,061 | 72,093 |
Carrying Amount | ||
Assets | ||
Loans and leases held for investment, net | 4,886,782 | 4,705,302 |
Other assets | 39,727 | 36,646 |
Total assets | 4,926,509 | 4,741,948 |
Liabilities: | ||
Deposits | 1,169,593 | 860,808 |
Borrowings | 7,388 | 66,773 |
Other liabilities | 62,572 | 62,247 |
Total liabilities | 1,239,553 | 989,828 |
Balance at Fair Value | ||
Assets | ||
Loans and leases held for investment, net | 5,060,962 | 4,941,825 |
Other assets | 40,003 | 36,697 |
Total assets | 5,100,965 | 4,978,522 |
Liabilities: | ||
Deposits | 1,164,915 | 860,808 |
Borrowings | 7,388 | 66,773 |
Other liabilities | 62,572 | 62,247 |
Total liabilities | 1,234,875 | 989,828 |
Balance at Fair Value | Level 1 Inputs | ||
Assets | ||
Loans and leases held for investment, net | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Deposits | 0 | 0 |
Borrowings | 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 | 38,885 | 35,300 |
Total assets | 38,885 | 35,300 |
Liabilities: | ||
Deposits | 0 | 0 |
Borrowings | 27 | 2,619 |
Other liabilities | 37,270 | 30,311 |
Total liabilities | 37,297 | 32,930 |
Balance at Fair Value | Level 3 Inputs | ||
Assets | ||
Loans and leases held for investment, net | 5,060,962 | 4,941,825 |
Other assets | 1,118 | 1,397 |
Total assets | 5,062,080 | 4,943,222 |
Liabilities: | ||
Deposits | 1,164,915 | 860,808 |
Borrowings | 7,361 | 64,154 |
Other liabilities | 25,302 | 31,936 |
Total liabilities | $ 1,197,578 | $ 956,898 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narratives (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Credit Derivatives [Line Items] | ||
Maximum term of credit risk derivatives | 18 months | |
Other Credit Derivatives | ||
Credit Derivatives [Line Items] | ||
Loss on derivative | $ 2.3 | $ 3.3 |
Interest Rate Swap | Minimum | ||
Credit Derivatives [Line Items] | ||
Term of contract | 1 year | |
Interest Rate Swap | Maximum | ||
Credit Derivatives [Line Items] | ||
Term of contract | 3 years | |
Other Credit Derivatives | ||
Credit Derivatives [Line Items] | ||
Notional | $ 3.8 | 3.8 |
Credit derivatives at fair value | $ 3.3 | $ 3.3 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Notional and Gross Fair Value Amounts of Derivatives used for Hedging (Details) - Interest Rate Swap - Fair Value Hedging - Designated as Hedging Instrument $ in Thousands | Sep. 30, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional | $ 1,500,000 |
Gross Derivative Asset Fair Value | $ 3,483 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule of Gains (Losses) Related to Fair Value Hedges (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedged item | $ (3,020) |
Fair Value Hedging | Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivatives used for hedging | 3,483 |
Interest settlement on derivative | 883 |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Total gains on fair value hedges | $ 1,346 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule of Fair Value Hedges (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedged layer of loans with a carrying amount | $ 1,500,000 |
Loans and leases held for investment at amortized cost | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Carrying Amount of Hedged Item | 3,586,394 |
Cumulative Fair Value Adjustment to Hedged Item | $ (3,020) |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Summary of Property, Equipment and Software (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Software | $ 206,311 | $ 174,360 |
Leasehold improvements | 31,249 | 31,214 |
Computer equipment | 23,753 | 27,410 |
Furniture and fixtures | 6,088 | 6,088 |
Total property, equipment and software | 267,401 | 239,072 |
Accumulated depreciation and amortization | (107,633) | (102,599) |
Total property, equipment and software, net | 159,768 | 136,473 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Software | 71,700 | 43,700 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Software | $ 4,700 | $ 3,000 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 35,242 | $ 32,277 | ||
Property, Equipment and Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 10,300 | $ 9,500 | $ 32,100 | $ 28,300 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narratives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 75,717,000 | $ 75,717,000 | $ 75,717,000 | ||
Goodwill impairment | 0 | $ 0 | 0 | $ 0 | |
Amortization expense | 1,000,000 | 1,200,000 | 3,200,000 | 3,700,000 | |
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Customer Relationships | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortized period | 10 years | 10 years | |||
Customer Relationships | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortized period | 14 years | 14 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying value | $ 13,151 | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 54,500 | $ 54,500 |
Accumulated amortization | (41,349) | (38,166) |
Net carrying value | $ 13,151 | $ 16,334 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Expected Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 1,015 |
2024 | 3,549 |
2025 | 2,901 |
2026 | 2,252 |
2027 | 1,603 |
Thereafter | 1,831 |
Net carrying value | $ 13,151 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deferred tax assets, net | $ 171,766 | $ 173,687 | |
Servicing assets | 82,602 | 85,654 | |
Operating lease assets | 53,510 | 63,872 | |
Nonmarketable equity investments | 46,812 | 38,320 | |
Intangible assets, net | 13,151 | 16,334 | |
Other | 129,111 | 122,439 | |
Total other assets | [1] | 496,952 | 500,306 |
Principal balance of underlying loan servicing rights | $ 9,700,000 | $ 11,000,000 | |
[1]Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Condensed Consolidated Financial Statements – Note 6. Securitizations and Variable Interest Entities .” |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Interest-bearing deposits: | ||
Savings and money market accounts | $ 4,537,503 | $ 3,616,657 |
Certificates of deposit | 1,169,593 | 860,808 |
Checking accounts | 979,973 | 1,681,095 |
Total | 6,687,069 | 6,158,560 |
Noninterest-bearing deposits | 313,194 | 233,993 |
Total deposits | $ 7,000,263 | $ 6,392,553 |
Deposits - Maturity Schedule (D
Deposits - Maturity Schedule (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
2023 | $ 310,816 | |
2024 | 833,003 | |
2025 | 14,075 | |
2026 | 1,252 | |
2027 | 9,228 | |
Thereafter | 1,219 | |
Total certificates of deposit | $ 1,169,593 | $ 860,808 |
Deposits - Certificates of Depo
Deposits - Certificates of Deposit exceeding FDIC limit (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Other Liabilities Disclosure [Abstract] | |
Three months or less | $ 4,949 |
Over 3 months through 6 months | 5,117 |
Over 6 months through 12 months | 43,598 |
Over 12 months | 3,674 |
Total | $ 57,338 |
Borrowings - Short-term Borrowi
Borrowings - Short-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Federal Reserve Bank Borrowings | ||
Short-Term Debt [Line Items] | ||
Pledged collateral | $ 4,900,000 | $ 4,900,000 |
Federal Home Loan Bank Advances | ||
Short-Term Debt [Line Items] | ||
Pledged collateral | 754,000 | 754,000 |
Repurchase Agreements | ||
Short-Term Debt [Line Items] | ||
Short-term debt | 27 | 2,600 |
Federal Reserve Bank Borrowings | ||
Short-Term Debt [Line Items] | ||
Available borrowing capacity | 3,800,000 | 3,800,000 |
Federal Home Loan Bank Advances | ||
Short-Term Debt [Line Items] | ||
Available borrowing capacity | $ 605,500 | $ 605,500 |
Borrowings - Long-Term Debt (De
Borrowings - Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Consolidated | Payables to Securitization Holders | ||
Debt Instrument [Line Items] | ||
Restricted cash | $ 3,700 | $ 5,700 |
PPPLF | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.35% | |
Outstanding borrowings | $ 7,361 | 64,154 |
Retail notes, certificates and secured borrowings | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 18,118 | 55,425 |
Payable on Structured Program borrowings | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 3,329 | 8,085 |
PPPLF | ||
Debt Instrument [Line Items] | ||
Pledged collateral | 7,560 | 66,971 |
Payable on Structured Program borrowings | ||
Debt Instrument [Line Items] | ||
Pledged collateral | 4,828 | 9,708 |
Other long-term debt | Consolidated | Loans Held for Investment and Loans Held for Sale | Payables to Securitization Holders | Loans Related to Consolidation of Securitization Trust | ||
Debt Instrument [Line Items] | ||
Pledged collateral | $ 1,100 | $ 4,000 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Operating lease liabilities | $ 65,747 | $ 77,291 | |
Accounts payable and accrued expenses | 54,179 | 98,173 | |
Payable to investors | 37,270 | 30,311 | |
Other | 77,838 | 86,842 | |
Total other liabilities | [1] | $ 235,034 | $ 292,617 |
[1]Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Condensed Consolidated Financial Statements – Note 6. Securitizations and Variable Interest Entities .” |
Employee Incentive Plans - Sche
Employee Incentive Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock options | ||||
Stock-based compensation expense, gross | $ 16,855 | $ 18,937 | $ 49,292 | $ 56,144 |
Less: Capitalized stock-based compensation expense | 2,449 | 2,194 | 7,170 | 5,934 |
Stock-based compensation expense, net | 14,406 | 16,743 | 42,122 | 50,210 |
RSUs and PBRSUs | ||||
Stock options | ||||
Stock-based compensation expense, gross | 16,855 | 18,931 | 49,292 | 56,098 |
Stock options | ||||
Stock options | ||||
Stock-based compensation expense, gross | $ 0 | $ 6 | $ 0 | $ 46 |
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, 2023 $ / shares shares | |
RSUs | |
Number of Units | |
Unvested, beginning (shares) | shares | 8,672,626 |
Granted (shares) | shares | 6,533,732 |
Vested (shares) | shares | (4,329,854) |
Forfeited/expired (shares) | shares | (1,772,768) |
Unvested, ending (shares) | shares | 9,103,736 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning ($ per share) | $ / shares | $ 12.94 |
Granted ($ per share) | $ / shares | 7.68 |
Vested ($ per share) | $ / shares | 11.63 |
Forfeited/expired ($ per share) | $ / shares | 12.42 |
Unvested, ending ($ per share) | $ / shares | $ 9.89 |
PBRSUs | |
Number of Units | |
Unvested, beginning (shares) | shares | 1,754,898 |
Granted (shares) | shares | 807,499 |
Vested (shares) | shares | (870,766) |
Forfeited/expired (shares) | shares | (104,084) |
Unvested, ending (shares) | shares | 1,587,547 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning ($ per share) | $ / shares | $ 11.19 |
Granted ($ per share) | $ / shares | 7.15 |
Vested ($ per share) | $ / shares | 4.22 |
Forfeited/expired ($ per share) | $ / shares | 11.77 |
Unvested, ending ($ per share) | $ / shares | $ 12.63 |
Employee Incentive Plans - Narr
Employee Incentive Plans - Narratives (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) shares | |
RSUs | |
Stock options | |
Granted (shares) | shares | 6,533,732 |
Equity instruments other than options, aggregate fair value | $ 50.2 |
Unrecognized compensation cost related to unvested awards | $ 81.9 |
Unrecognized compensation cost, period for recognition | 1 year 10 months 24 days |
PBRSUs | |
Stock options | |
Granted (shares) | shares | 807,499 |
Equity instruments other than options, aggregate fair value | $ 5.8 |
Unrecognized compensation cost related to unvested awards | $ 7.9 |
Unrecognized compensation cost, period for recognition | 1 year 7 months 6 days |
Performance period | 3 years |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 3,327 | $ (7,243) | $ 12,149 | $ (134,209) |
Effective tax rate | 39.90% | 29.70% | ||
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, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, net of liabilities | $ 219,329 | $ 221,408 |
Valuation allowance | (47,563) | (47,721) |
Deferred tax assets, net of valuation allowance | $ 171,766 | $ 173,687 |
Leases - Narratives (Details)
Leases - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Sales-type lease, interest income | $ 2 | $ 2.5 | $ 7.2 | $ 7.7 |
Lease renewal term | 15 years | 15 years | ||
Security deposit | $ 0.4 | $ 0.4 | ||
Letters of credit outstanding, amount | $ 1.1 | $ 1.1 | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 3 months | 3 months | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 8 years | 8 years |
Leases - Components of Equipmen
Leases - Components of Equipment Finance Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Lease receivables | $ 103,750 | $ 137,969 |
Unguaranteed residual asset values | 33,264 | 39,262 |
Unearned income | (12,397) | (17,786) |
Deferred fees | 672 | 874 |
Total | $ 125,289 | $ 160,319 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Receivable (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 15,167 |
2024 | 35,355 |
2025 | 27,288 |
2026 | 16,796 |
2027 | 7,447 |
Thereafter | 5,538 |
Total lease payments | 107,591 |
Discount effect | (3,841) |
Present value of future minimum lease payments | $ 103,750 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease assets, balance sheet classification | Other assets | Other assets |
Operating lease assets | $ 53,510 | $ 63,872 |
Operating lease liabilities, balance sheet classification | Other liabilities | Other liabilities |
Operating lease liabilities | $ 65,747 | $ 77,291 |
Leases - Net Lease Costs (Detai
Leases - Net Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Net lease costs | $ (3,114) | $ (3,195) | $ (9,376) | $ (9,194) |
Occupancy | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs | (3,114) | (3,195) | (9,376) | (12,041) |
Other non-interest income | ||||
Lessee, Lease, Description [Line Items] | ||||
Sublease revenue | $ 0 | $ 0 | $ 0 | $ 2,847 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities | $ 0 | $ 0 | $ (4,664) | $ 0 |
Leases - Future Operating Lease
Leases - Future Operating Lease Payments and Sublease Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Operating Lease Payments | ||
2023 | $ 3,220 | |
2024 | 12,798 | |
2025 | 13,129 | |
2026 | 11,710 | |
2027 | 10,987 | |
Thereafter | 27,238 | |
Total lease payments | 79,082 | |
Discount effect | (13,335) | |
Present value of future minimum lease payments | $ 65,747 | $ 77,291 |
Leases - Weighted-average Lease
Leases - Weighted-average Lease Term and Discount Rate (Details) | Sep. 30, 2023 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 6 years 5 months 26 days |
Weighted-average discount rate | 5.40% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Unfunded Loan Commitment, Commitments To Extend Credit | |||
Loss Contingencies [Line Items] | |||
Unfunded loan commitments | $ 89.5 | $ 138 | $ 144 |
Regulatory Requirements - Narra
Regulatory Requirements - Narratives (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | 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, 2023 USD ($) | Dec. 31, 2022 USD ($) |
LendingClub | ||
Amount | ||
CET1 capital | $ 1,078.7 | $ 1,005.8 |
Tier 1 capital | 1,078.7 | 1,005.8 |
Total capital | 1,161.7 | 1,088.1 |
Tier 1 leverage | 1,078.7 | 1,005.8 |
Risk-weighted assets | 6,388.6 | 6,360.7 |
Quarterly adjusted average assets | $ 8,200.3 | $ 7,119 |
Ratio | ||
CET1 capital | 0.169 | 0.158 |
Tier 1 capital | 0.169 | 0.158 |
Total capital | 0.182 | 0.171 |
Tier 1 leverage | 0.132 | 0.141 |
Minimum to be Well Capitalized, Ratio [Abstract] | ||
CET1 capital | 0.070 | |
Tier 1 capital | 0.085 | |
Total capital | 0.105 | |
Tier 1 leverage | 0.040 | |
LendingClub Bank | ||
Amount | ||
CET1 capital | $ 949.7 | $ 852.2 |
Tier 1 capital | 949.7 | 852.2 |
Total capital | 1,031.2 | 932.4 |
Tier 1 leverage | 949.7 | 852.2 |
Risk-weighted assets | 6,268.6 | 6,194 |
Quarterly adjusted average assets | $ 8,016 | $ 6,795.2 |
Ratio | ||
CET1 capital | 0.151 | 0.138 |
Tier 1 capital | 0.151 | 0.138 |
Total capital | 0.165 | 0.151 |
Tier 1 leverage | 0.118 | 0.125 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Referral revenue | $ 1,029 | $ 3,144 | $ 4,008 | $ 10,860 |
Realized gains on sales of securities available for sale | 0 | 0 | 0 | 36 |
Other | 1,929 | 4,256 | 5,341 | 13,843 |
Other non-interest income | $ 2,958 | $ 7,400 | $ 9,349 | $ 24,739 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Consumer credit services | $ 2,930 | $ 4,610 | $ 10,377 | $ 15,804 |
Other | 10,146 | 10,496 | 35,724 | 30,727 |
Other non-interest expense | $ 13,076 | $ 15,106 | $ 46,101 | $ 46,531 |
Segment Reporting - Narratives
Segment Reporting - Narratives (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Total net revenue | Customer concentration risk | One marketplace bank investor | |
Segment Reporting Information [Line Items] | |
Concentration risk, percentage | 12% |
Segment Reporting - Statements
Segment Reporting - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Marketplace revenue | $ 60,886 | $ 173,837 | $ 239,303 | $ 560,187 |
Other non-interest income | 2,958 | 7,400 | 9,349 | 24,739 |
Total non-interest income | 63,844 | 181,237 | 248,652 | 584,926 |
Interest income | 207,412 | 143,220 | 624,311 | 383,341 |
Interest expense | (70,407) | (19,544) | (193,950) | (43,759) |
Net interest income | 137,005 | 123,676 | 430,361 | 339,582 |
Total net revenue | 200,849 | 304,913 | 679,013 | 924,508 |
Provision for credit losses | (64,479) | (82,739) | (201,658) | (205,814) |
Non-interest expense | (128,035) | (186,219) | (436,422) | (586,809) |
Income (Loss) before income tax benefit (expense) | 8,335 | 35,955 | 40,933 | 131,885 |
Income tax benefit (expense) | (3,327) | 7,243 | (12,149) | 134,209 |
Net income | 5,008 | 43,198 | 28,784 | 266,094 |
Capital expenditures | 15,984 | 17,301 | 48,239 | 54,659 |
Depreciation and amortization | 11,250 | 10,681 | 35,242 | 32,277 |
Operating Segments | LendingClub Bank | ||||
Segment Reporting Information [Line Items] | ||||
Marketplace revenue | 37,439 | 153,504 | 172,133 | 509,426 |
Other non-interest income | 18,783 | 25,240 | 59,687 | 64,779 |
Total non-interest income | 56,222 | 178,744 | 231,820 | 574,205 |
Interest income | 203,961 | 137,142 | 612,805 | 357,117 |
Interest expense | (69,517) | (15,277) | (189,959) | (25,134) |
Net interest income | 134,444 | 121,865 | 422,846 | 331,983 |
Total net revenue | 190,666 | 300,609 | 654,666 | 906,188 |
Provision for credit losses | (64,463) | (82,739) | (201,658) | (205,814) |
Non-interest expense | (122,142) | (177,714) | (413,088) | (552,809) |
Income (Loss) before income tax benefit (expense) | 4,061 | 40,156 | 39,920 | 147,565 |
Income tax benefit (expense) | (2,380) | (9,440) | (12,065) | (39,113) |
Net income | 1,681 | 30,716 | 27,855 | 108,452 |
Capital expenditures | 15,984 | 17,301 | 48,239 | 54,659 |
Depreciation and amortization | 7,579 | 4,099 | 21,546 | 11,109 |
Operating Segments | LendingClub Corporation | ||||
Segment Reporting Information [Line Items] | ||||
Marketplace revenue | 12,320 | 9,015 | 33,200 | 35,313 |
Other non-interest income | 2,478 | 4,794 | 7,462 | 12,931 |
Total non-interest income | 14,798 | 13,809 | 40,662 | 48,244 |
Interest income | 3,451 | 6,078 | 11,506 | 26,224 |
Interest expense | (890) | (4,267) | (3,991) | (18,625) |
Net interest income | 2,561 | 1,811 | 7,515 | 7,599 |
Total net revenue | 17,359 | 15,620 | 48,177 | 55,843 |
Provision for credit losses | (16) | 0 | 0 | 0 |
Non-interest expense | (13,069) | (19,821) | (47,164) | (71,523) |
Income (Loss) before income tax benefit (expense) | 4,274 | (4,201) | 1,013 | (15,680) |
Income tax benefit (expense) | (947) | 16,683 | (84) | 120,274 |
Net income | 3,327 | 12,482 | 929 | 104,594 |
Capital expenditures | 0 | 0 | 0 | 0 |
Depreciation and amortization | 3,671 | 6,582 | 13,696 | 21,168 |
Intercompany Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Marketplace revenue | 11,127 | 11,318 | 33,970 | 15,448 |
Other non-interest income | (18,303) | (22,634) | (57,800) | (52,971) |
Total non-interest income | (7,176) | (11,316) | (23,830) | (37,523) |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Net interest income | 0 | 0 | 0 | 0 |
Total net revenue | (7,176) | (11,316) | (23,830) | (37,523) |
Provision for credit losses | 0 | 0 | 0 | 0 |
Non-interest expense | 7,176 | 11,316 | 23,830 | 37,523 |
Income (Loss) before income tax benefit (expense) | 0 | 0 | 0 | 0 |
Income tax benefit (expense) | 0 | 0 | 0 | 53,048 |
Net income | 0 | 0 | 0 | 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, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Assets | |||||||
Total cash and cash equivalents | $ 1,307,770 | $ 1,057,030 | |||||
Restricted cash | [1] | 42,487 | 67,454 | ||||
Total securities available for sale | 795,669 | 345,702 | |||||
Loans held for sale at fair value | 362,789 | 110,400 | |||||
Loans and leases held for investment, net | 4,886,782 | 4,705,302 | |||||
Loans held for investment at fair value | [1] | 326,299 | 925,938 | ||||
Retail and certificate loans held for investment at fair value | [1] | 18,118 | 55,425 | ||||
Property, equipment and software, net | 159,768 | 136,473 | |||||
Investment in subsidiary | 0 | 0 | |||||
Goodwill | 75,717 | 75,717 | |||||
Other assets | [1] | 496,952 | 500,306 | ||||
Total assets | 8,472,351 | 7,979,747 | |||||
Liabilities and Equity | |||||||
Total deposits | 7,000,263 | 6,392,553 | |||||
Borrowings | [1] | 10,717 | 74,858 | ||||
Retail notes, certificates and secured borrowings at fair value | 18,118 | 55,425 | |||||
Other liabilities | [1] | 235,034 | 292,617 | ||||
Liabilities | 7,264,132 | 6,815,453 | |||||
Total equity | 1,208,219 | $ 1,205,523 | 1,164,294 | $ 1,121,410 | $ 1,079,117 | $ 850,242 | |
Total liabilities and equity | 8,472,351 | 7,979,747 | |||||
Operating Segments | LendingClub Bank | |||||||
Assets | |||||||
Total cash and cash equivalents | 1,283,549 | 1,020,874 | |||||
Restricted cash | 0 | 0 | |||||
Total securities available for sale | 790,542 | 329,287 | |||||
Loans held for sale at fair value | 362,789 | 110,400 | |||||
Loans and leases held for investment, net | 4,886,782 | 4,705,302 | |||||
Loans held for investment at fair value | 316,622 | 906,711 | |||||
Retail and certificate loans held for investment at fair value | 0 | 0 | |||||
Property, equipment and software, net | 139,269 | 102,274 | |||||
Investment in subsidiary | 0 | 0 | |||||
Goodwill | 75,717 | 75,717 | |||||
Other assets | 352,072 | 339,341 | |||||
Total assets | 8,207,342 | 7,589,906 | |||||
Liabilities and Equity | |||||||
Total deposits | 7,074,717 | 6,420,827 | |||||
Borrowings | 7,361 | 64,154 | |||||
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |||||
Other liabilities | 136,543 | 189,185 | |||||
Liabilities | 7,218,621 | 6,674,166 | |||||
Total equity | 988,721 | 915,740 | |||||
Total liabilities and equity | 8,207,342 | 7,589,906 | |||||
Operating Segments | LendingClub Corporation | |||||||
Assets | |||||||
Total cash and cash equivalents | 93,060 | 56,475 | |||||
Restricted cash | 48,102 | 75,409 | |||||
Total securities available for sale | 5,127 | 16,415 | |||||
Loans held for sale at fair value | 0 | 0 | |||||
Loans and leases held for investment, net | 0 | 0 | |||||
Loans held for investment at fair value | 9,677 | 19,227 | |||||
Retail and certificate loans held for investment at fair value | 18,118 | 55,425 | |||||
Property, equipment and software, net | 20,499 | 34,199 | |||||
Investment in subsidiary | 813,436 | 755,319 | |||||
Goodwill | 0 | 0 | |||||
Other assets | 162,490 | 173,851 | |||||
Total assets | 1,170,509 | 1,186,320 | |||||
Liabilities and Equity | |||||||
Total deposits | 0 | 0 | |||||
Borrowings | 3,356 | 10,704 | |||||
Retail notes, certificates and secured borrowings at fair value | 18,118 | 55,425 | |||||
Other liabilities | 116,101 | 116,318 | |||||
Liabilities | 137,575 | 182,447 | |||||
Total equity | 1,032,934 | 1,003,873 | |||||
Total liabilities and equity | 1,170,509 | 1,186,320 | |||||
Intercompany Eliminations | |||||||
Assets | |||||||
Total cash and cash equivalents | (68,839) | (20,319) | |||||
Restricted cash | (5,615) | (7,955) | |||||
Total securities available for sale | 0 | 0 | |||||
Loans held for sale at fair value | 0 | 0 | |||||
Loans and leases held for investment, net | 0 | 0 | |||||
Loans held for investment at fair value | 0 | 0 | |||||
Retail and certificate loans held for investment at fair value | 0 | 0 | |||||
Property, equipment and software, net | 0 | 0 | |||||
Investment in subsidiary | (813,436) | (755,319) | |||||
Goodwill | 0 | 0 | |||||
Other assets | (17,610) | (12,886) | |||||
Total assets | (905,500) | (796,479) | |||||
Liabilities and Equity | |||||||
Total deposits | (74,454) | (28,274) | |||||
Borrowings | 0 | 0 | |||||
Retail notes, certificates and secured borrowings at fair value | 0 | 0 | |||||
Other liabilities | (17,610) | (12,886) | |||||
Liabilities | (92,064) | (41,160) | |||||
Total equity | (813,436) | (755,319) | |||||
Total liabilities and equity | $ (905,500) | $ (796,479) | |||||
[1]Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Condensed Consolidated Financial Statements – Note 6. Securitizations and Variable Interest Entities .” |