Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-36771 | ||
Entity Registrant Name | LendingClub Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0605731 | ||
Entity Address, Address Line One | 595 Market Street, Suite 200, | ||
Entity Address, City or Town | San Francisco, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94105 | ||
City Area Code | 415 | ||
Local Phone Number | 632-5600 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | LC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 894,810,579 | ||
Entity Common Stock, Shares Outstanding (shares) | 110,410,602 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement for the Registrant’s 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2023. | ||
Entity Central Index Key | 0001409970 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and due from banks | $ 14,993 | $ 23,125 | |
Interest-bearing deposits in banks | 1,237,511 | 1,033,905 | |
Total cash and cash equivalents | 1,252,504 | 1,057,030 | |
Restricted cash | [1] | 41,644 | 67,454 |
Securities available for sale at fair value ($1,663,990 and $399,668 at amortized cost, respectively) | 1,620,262 | 345,702 | |
Loans held for sale at fair value | 407,773 | 110,400 | |
Loans and leases held for investment | 4,850,302 | 5,033,154 | |
Allowance for loan and lease losses | (310,387) | (327,852) | |
Loans and leases held for investment, net | 4,539,915 | 4,705,302 | |
Loans held for investment at fair value | 262,190 | 925,938 | |
Retail and certificate loans held for investment at fair value | [1] | 10,488 | 55,425 |
Property, equipment and software, net | 161,517 | 136,473 | |
Goodwill | 75,717 | 75,717 | |
Other assets | [1] | 455,453 | 500,306 |
Total assets | 8,827,463 | 7,979,747 | |
Deposits: | |||
Interest-bearing | 7,001,680 | 6,158,560 | |
Noninterest-bearing | 331,806 | 233,993 | |
Total deposits | 7,333,486 | 6,392,553 | |
Borrowings | [1] | 8,866 | 74,858 |
Retail notes and certificates at fair value | [1] | 10,488 | 55,425 |
Other liabilities | [1] | 222,801 | 292,617 |
Total liabilities | 7,575,641 | 6,815,453 | |
Equity | |||
Common stock, $0.01 par value; 180,000,000 shares authorized; 110,410,602 and 106,546,995 shares issued and outstanding, respectively | 1,104 | 1,065 | |
Additional paid-in capital | 1,669,828 | 1,628,590 | |
Accumulated deficit | (388,806) | (427,745) | |
Accumulated other comprehensive loss | (30,304) | (37,616) | |
Total equity | 1,251,822 | 1,164,294 | |
Total liabilities and equity | $ 8,827,463 | $ 7,979,747 | |
[1] Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Consolidated Financial Statements – Note 7. Securitizations and Variable Interest Entities.” |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Securities available for sale at amortized cost | $ 1,663,990 | $ 399,668 |
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 180,000,000 | 180,000,000 |
Common stock, shares issued (shares) | 110,410,602 | 106,546,995 |
Common stock, shares outstanding (shares) | 110,410,602 | 106,546,995 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Non-interest income: | ||||
Marketplace revenue | $ 291,484 | $ 683,626 | $ 578,580 | |
Other non-interest income | 11,297 | 28,765 | 27,219 | |
Total non-interest income | 302,781 | 712,391 | 605,799 | |
Interest income: | ||||
Interest on loans held for sale | 35,655 | 26,183 | 29,540 | |
Interest and fees on loans and leases held for investment | 616,735 | 465,450 | 188,977 | |
Interest on loans held for investment at fair value | 69,866 | 12,877 | 4,436 | |
Interest on retail and certificate loans held for investment at fair value | 4,222 | 18,135 | 57,684 | |
Interest on securities available for sale | 40,235 | 16,116 | 11,025 | |
Other interest income | 65,917 | 18,579 | 1,170 | |
Total interest income | 832,630 | 557,340 | 292,832 | |
Interest expense: | ||||
Interest on deposits | 265,556 | 60,451 | 7,228 | |
Interest on retail notes and certificates at fair value | 4,222 | 18,135 | 57,684 | |
Other interest expense | 1,014 | 3,929 | 15,089 | |
Total interest expense | 270,792 | 82,515 | 80,001 | |
Net interest income | 561,838 | 474,825 | 212,831 | |
Total net revenue | 864,619 | 1,187,216 | 818,630 | |
Provision for credit losses | 243,565 | 267,326 | 138,800 | |
Non-interest expense: | ||||
Compensation and benefits | 261,948 | 339,397 | 288,390 | |
Marketing | 93,840 | 197,747 | 156,142 | |
Equipment and software | 53,485 | 49,198 | 39,490 | |
Depreciation and amortization | 47,195 | 43,831 | 44,285 | |
Professional services | 35,173 | 50,516 | 47,572 | |
Occupancy | 17,532 | 21,977 | 24,249 | |
Other non-interest expense | 57,264 | 64,187 | 61,258 | |
Total non-interest expense | 566,437 | 766,853 | 661,386 | |
Income before income tax benefit (expense) | 54,617 | 153,037 | 18,444 | |
Income tax benefit (expense) | (15,678) | 136,648 | 136 | |
Net income | [1] | $ 38,939 | $ 289,685 | $ 18,580 |
Common Stock | ||||
Earnings per share: | ||||
Basic EPS - common stockholders ($ per share) | [1] | $ 0.36 | $ 2.80 | $ 0.19 |
Diluted EPS - common stockholders ($ per share) | [1] | $ 0.36 | $ 2.79 | $ 0.18 |
Weighted-average common shares - Basic (shares) | [1] | 108,466,179 | 103,547,305 | 97,486,754 |
Weighted-average common shares - Diluted (shares) | [1] | 108,468,857 | 104,001,288 | 102,147,353 |
Preferred Stock | ||||
Earnings per share: | ||||
Basic EPS - common stockholders ($ per share) | [1] | $ 0 | $ 0 | $ 0.19 |
Diluted EPS - common stockholders ($ per share) | [1] | $ 0 | $ 0 | $ 0 |
Weighted-average common shares - Basic (shares) | [1] | 0 | 0 | 653,118 |
Weighted-average common shares - Diluted (shares) | [1] | 0 | 0 | 0 |
[1]See “ Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | [1] | $ 38,939 | $ 289,685 | $ 18,580 |
Other comprehensive income (loss): | ||||
Change in net unrealized gain (loss) on securities available for sale | 10,238 | (61,326) | 5,562 | |
Other comprehensive income (loss), before tax | 10,238 | (61,326) | 5,562 | |
Income tax effect | (2,926) | 16,664 | 0 | |
Other comprehensive income (loss), net of tax | 7,312 | (44,662) | 5,562 | |
Total comprehensive income | $ 46,251 | $ 245,023 | $ 24,142 | |
[1]See “ Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | |||
Preferred stock, beginning balance (shares) at Dec. 31, 2020 | 43,000 | |||||||||
Common stock, beginning balance (shares) at Dec. 31, 2020 | 88,149,510 | |||||||||
Treasury stock, beginning balance (shares) at Dec. 31, 2020 | [1] | 0 | ||||||||
Beginning balances at Dec. 31, 2020 | $ 724,171 | $ 0 | $ 881 | $ 1,457,816 | $ 0 | [1] | $ 1,484 | $ (736,010) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 69,762 | 69,762 | ||||||||
Net issuances under equity incentive plans (shares) | 4,833,300 | 4,251 | [1] | |||||||
Net issuances under equity incentive plans | (9,387) | $ 48 | (9,343) | $ (92) | [1] | |||||
Net issuances of stock related to acquisition (shares) | [2] | 3,761,114 | ||||||||
Net issuances of stock related to acquisition | [2] | 41,462 | $ 38 | 41,424 | ||||||
Exchange of preferred stock for common stock (shares) | (43,000) | 4,300,000 | ||||||||
Exchange of preferred stock for common stock | 0 | $ 43 | (43) | |||||||
Retirement of treasury stock (shares) | [1] | (4,251) | ||||||||
Retirement of treasury stock | 92 | $ 92 | [1] | |||||||
Net unrealized gain (loss) on securities available for sale, net of tax | 5,562 | 5,562 | ||||||||
Net income (loss) | 18,580 | [3] | 18,580 | |||||||
Preferred stock, ending balance (shares) at Dec. 31, 2021 | 0 | |||||||||
Common stock, ending balance (shares) at Dec. 31, 2021 | 101,043,924 | |||||||||
Treasury stock, ending balance (shares) at Dec. 31, 2021 | [1] | 0 | ||||||||
Ending balances at Dec. 31, 2021 | 850,242 | $ 0 | $ 1,010 | 1,559,616 | $ 0 | [1] | 7,046 | (717,430) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 73,717 | 73,717 | ||||||||
Net issuances under equity incentive plans (shares) | 5,503,071 | 7,751 | [1] | |||||||
Net issuances under equity incentive plans | (4,688) | $ 55 | (4,645) | $ (98) | [1] | |||||
Net issuances of stock related to acquisition | 0 | |||||||||
Retirement of treasury stock (shares) | [1] | (7,751) | ||||||||
Retirement of treasury stock | 0 | (98) | $ 98 | [1] | ||||||
Net unrealized gain (loss) on securities available for sale, net of tax | (44,662) | (44,662) | ||||||||
Net income (loss) | $ 289,685 | [3] | 289,685 | |||||||
Preferred stock, ending balance (shares) at Dec. 31, 2022 | 0 | |||||||||
Common stock, ending balance (shares) at Dec. 31, 2022 | 106,546,995 | 106,546,995 | ||||||||
Treasury stock, ending balance (shares) at Dec. 31, 2022 | [1] | 0 | ||||||||
Ending balances at Dec. 31, 2022 | $ 1,164,294 | $ 0 | $ 1,065 | 1,628,590 | $ 0 | [1] | (37,616) | (427,745) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | $ 61,619 | 61,619 | ||||||||
Net issuances under equity incentive plans (shares) | 35,473 | 3,863,607 | 0 | [1] | ||||||
Net issuances under equity incentive plans | $ (20,342) | $ 39 | (20,381) | $ 0 | [1] | |||||
Net issuances of stock related to acquisition | 0 | |||||||||
Net unrealized gain (loss) on securities available for sale, net of tax | 7,312 | 7,312 | ||||||||
Net income (loss) | $ 38,939 | [3] | 38,939 | |||||||
Preferred stock, ending balance (shares) at Dec. 31, 2023 | 0 | |||||||||
Common stock, ending balance (shares) at Dec. 31, 2023 | 110,410,602 | 110,410,602 | ||||||||
Treasury stock, ending balance (shares) at Dec. 31, 2023 | [1] | 0 | ||||||||
Ending balances at Dec. 31, 2023 | $ 1,251,822 | $ 0 | $ 1,104 | $ 1,669,828 | $ 0 | [1] | $ (30,304) | $ (388,806) | ||
[1]Includes shares that were transferred to the Company to satisfy payment of all or a portion of the exercise price in connection with the exercise of stock options.[2]Stock issued as part of the consideration paid related to the Acquisition. See “ Notes to Consolidated Financial Statements – Note 2. Business Acquisition. ” Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Cash Flows from Operating Activities: | |||||
Net income | [1] | $ 38,939 | $ 289,685 | $ 18,580 | |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||||
Net fair value adjustments | 134,114 | (8,503) | (3,986) | ||
Change in fair value of loan servicing assets | 62,581 | 73,229 | 54,108 | ||
Gain on sales of loans | (47,839) | (95,335) | (70,116) | ||
Provision for credit losses | 243,565 | 267,326 | 138,800 | ||
Accretion of loan deferred fees and costs | (90,723) | (86,138) | (41,319) | ||
Stock-based compensation, net | 52,389 | 66,362 | 66,759 | ||
Depreciation and amortization | 47,195 | 43,831 | 44,285 | ||
Income tax benefit from release of tax valuation allowance | 0 | (143,495) | 0 | ||
Other, net | (8,932) | (1,828) | 11,263 | ||
Net change to loans held for sale | (1,535,037) | 8,032 | 4,856 | ||
Net change in operating assets and liabilities: | |||||
Other assets | 54,894 | (16,762) | (9,733) | ||
Other liabilities | (87,746) | (20,836) | 26,372 | ||
Net cash (used for) provided by operating activities | (1,136,600) | 375,568 | 239,869 | ||
Cash Flows from Investing Activities: | |||||
Acquisition of company | 0 | 0 | (145,344) | ||
Cash received from acquisition | 0 | 0 | 668,236 | ||
Net change in loans and leases | 497,276 | (2,771,293) | (1,517,132) | ||
Net decrease in retail and certificate loans | 47,545 | 171,853 | 437,870 | ||
Purchases of securities available for sale | (61,648) | (222,534) | (100,474) | ||
Proceeds from sales of securities available for sale | 0 | 0 | 106,192 | ||
Proceeds from maturities and paydowns of securities available for sale | 97,709 | 86,078 | 143,402 | ||
Purchases of property, equipment and software, net | (59,509) | (69,481) | (34,413) | ||
Other investing activities | (4,676) | (4,423) | (12,747) | ||
Net cash provided by (used for) investing activities | 516,697 | (2,809,800) | (454,410) | ||
Cash Flows from Financing Activities: | |||||
Net change in deposits | 921,393 | 3,256,501 | 1,126,659 | ||
Principal payments on borrowings | (64,448) | (270,083) | (329,690) | ||
Principal payments on retail notes and certificates | (47,545) | (182,260) | (438,032) | ||
Other financing activities | (19,833) | (9,028) | (9,295) | ||
Net cash provided by financing activities | 789,567 | 2,795,130 | 349,642 | ||
Net Increase in Cash, Cash Equivalents and Restricted Cash | 169,664 | 360,898 | 135,101 | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,124,484 | 763,586 | 628,485 | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,294,148 | 1,124,484 | 763,586 | ||
Supplemental Cash Flow Information: | |||||
Cash paid for interest | 258,626 | 79,732 | 77,334 | ||
Cash paid for taxes | 6,631 | 14,462 | 4,799 | ||
Cash paid for operating leases included in the measurement of lease liabilities | 12,797 | 15,540 | 20,546 | ||
Non-cash investing activity: | |||||
Loans and leases held for investment transferred to loans held for sale | 0 | 0 | 402,960 | ||
Net securities retained from Structured Program transactions | 1,299,313 | 0 | 0 | ||
Non-cash investing and financing activity: | |||||
Net issuances of stock related to acquisition | 0 | 0 | 41,462 | [2] | |
Non-cash financing activity: | |||||
Derecognition of payable to securitization note and residual certificate holders held in consolidated VIE | $ 0 | $ 36,072 | $ 0 | ||
[1]See “ Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. Notes to Consolidated Financial Statements – Note 2. Business Acquisition. ” |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | |||||
Cash and cash equivalents | $ 1,252,504 | $ 1,057,030 | |||
Restricted cash | [1] | 41,644 | 67,454 | ||
Total cash, cash equivalents and restricted cash | $ 1,294,148 | $ 1,124,484 | $ 763,586 | $ 628,485 | |
[1] Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Consolidated Financial Statements – Note 7. Securitizations and Variable Interest Entities.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, contain all adjustments, 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. Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclassified to conform to the current period presentation. Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents have original maturities of three months or less and include cash on hand, cash items in transit, and amounts due from or held with other depository institutions, primarily with the Board of Governors of the Federal Reserve System (FRB). Restricted Cash Cash items held with other depository institutions in which the ability to withdraw funds is restricted by contractual provisions is classified as restricted cash. Such amounts include: (i) cash pledged as security related to LendingClub’s issuing bank activities and transactions with certain investors; and (ii) cash received from borrowers on loans owned and not yet distributed to investors. Securities Debt securities purchased and asset-backed securities retained from the sale of loans are classified as available for sale (AFS) securities. AFS securities represent investment securities with readily determinable fair values that the Company: (i) does not hold for trading purposes and (ii) does not have the positive intent and ability to hold to maturity. AFS securities are measured at fair value, with unrealized gains and losses reported in “Accumulated other comprehensive income (loss)” within the equity section of the Balance Sheet. The amount reported in “Accumulated other comprehensive income (loss)” is net of any valuation allowance and applicable income taxes. Management evaluates whether debt AFS securities with unrealized losses are impaired on a quarterly basis. For any security that has declined in fair value below its amortized cost basis, the Company recognizes an impairment loss in current period earnings if management has the intent to sell the security or if it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. The assessment of impairment also considers whether the decline in fair value below the security’s amortized cost basis is attributable to credit-related factors. If credit-related factors exist, credit-related impairment has occurred regardless of the Company’s intent to hold the security until it recovers. The credit-related portion of impairment is recognized as provision for credit loss expense in earnings with a corresponding valuation allowance for AFS securities on the Balance Sheet, to the extent the allowance does not reduce the value of the security below its fair value. Equity securities that do not have readily determinable fair values are generally recorded at cost adjusted for impairment, if any. These securities include FRB stock and Federal Home Loan Bank (FHLB) stock and are reported as “Nonmarketable equity investments” in “Other assets” on the Balance Sheet. Loans and Leases The Company initially classifies loans and leases as either held for sale (HFS) or held for investment (HFI) based on management’s assessment of its intent and ability to hold the loans for the foreseeable future or until maturity. Management’s intent and ability with respect to certain loans may change from time to time. In order to reclassify loans to HFS, management must have the intent to sell the loans and the ability to reasonably identify the specific loans to be sold. HFI loans at amortized cost HFI loans, with the exception of HFI loans accounted for under the fair value option, are measured at historical cost and reported at their outstanding principal balances net of any charge-offs, unamortized deferred fees and costs on originated loans, and for purchased loans, net of any unamortized premiums and discounts. Leases are recorded at the discounted amounts of lease payments receivable plus the estimated residual value of the leased asset, net of unearned income and unamortized deferred fees and costs. Lease payments receivable reflect contractual lease payments adjusted for renewal or termination options that the Company believes the customer is reasonably certain to exercise. Unearned income, deferred fees and costs, and discounts and premiums are accreted and amortized to interest income over the contractual life of the loan using its effective interest rate. In certain circumstances, the Company may transfer loans from HFI to HFS. At the time of transfer, these loans are valued at the lower of amortized cost or fair value. HFI loans at fair value HFI loans are measured at fair value if the Company elects the fair value option. The Company may elect the fair value option for certain HFI loans, which could include loans purchased by the Company. Interest income is recorded under the effective interest method which considers any purchase premium or discounts. In addition, purchase related discounts absorb credit losses. Retail and certificate loans and the related notes and certificates are measured at fair value. Due to the payment dependent feature of the notes and certificates, changes in the fair value of the notes and certificates are offset by changes in the fair values of related loans, resulting in no net effect on the Company’s earnings. HFS loans at fair value Loans initially classified as HFS are reported at their fair value with the Company’s election of the fair value option. Origination fees and costs for HFS loans are recognized in earnings at the time of loan origination and are not deferred. Origination fees are recognized in earnings within “Marketplace revenue” on the Consolidated Statements of Income (Income Statement). Changes in the fair value are recorded in “Net fair value adjustments” included in “ Marketplace revenue Accrued Interest Income and Non-Accrual Policy Interest income is accrued as earned. The accrual of interest income is discontinued, and the loan or lease is placed on nonaccrual status at 90 days past due or when reasonable doubt exists as to timely collection. Past due status is based on the contractual terms of the loan or lease. When a loan or lease is placed on nonaccrual status, all income previously accrued but not collected is reversed against the current period’s interest income. The Company has a nonaccrual policy which results in the timely reversal of past-due accrued interest, and it does not record an allowance for credit losses (ACL) on accrued interest receivable. However, we record an ACL on accrued interest receivable for past due unsecured personal loans that are less than 90 days past due. Interest collections on nonaccrual loans and leases for which the ultimate collectability of principal is uncertain are applied as principal reductions; otherwise, such collections are credited to income when received. Nonaccrual loans and leases are returned to accrual status when there no longer exists concern over collectability, the borrower has demonstrated, over time, both the intent and ability to repay and the loan or lease has been brought current and future payments are reasonably assured. For loans held for investment measured at fair value, we record interest income over the term of the underlying loans using the effective interest method which considers any purchase discount or premiums. Allowance for Credit Losses The ACL represents management’s estimate of expected credit losses in the loan and lease portfolio, excluding loans accounted for under the fair value option. The ACL is measured based on a lifetime expected loss model, which does not require a loss event to occur before a credit loss is recognized. Under the lifetime expected credit loss model, the Company estimates the allowance based on relevant available information related to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. The ACL is estimated using a discounted cash flow (DCF) approach where effective interest rates are used to calculate the net present value of expected cash flows. The effective interest rate is calculated based on the periodic interest income received from the loan’s contractual cash flows and the net investment in the loan, which includes deferred origination fees and costs, to provide a constant rate of return over the term. The Company evaluates its estimate of expected credit losses each reporting period and records any additions or reductions to the allowance on the Income Statement as “Provision for credit losses.” Amounts determined to be uncollectible are charged-off to the allowance. Estimates of expected credit losses include expected recoveries of amounts previously charged-off and amounts expected to be charged-off. If amounts previously charged off are subsequently expected to be collected, the Company may recognize a negative allowance, which is limited to the amount that was previously charged off. Under applicable accounting guidance, for reporting purposes, the loan and lease portfolio is categorized by portfolio segment. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine the ACL. The Company’s two portfolio segments are consumer and commercial. The Company further disaggregates its portfolio segments into various classes of financing receivables based on their underlying risk characteristics. The classes within the consumer portfolio segment are unsecured consumer, secured consumer and residential mortgages. The classes within the commercial portfolio segment are commercial and industrial, commercial real estate, and equipment finance. The ACL is measured on a collective basis when loans share similar risk characteristics. Relevant risk characteristics for the consumer portfolio include product type, risk rating, loan term, and monthly vintage. Relevant risk characteristics for the commercial portfolio include product type, risk rating and PCD status. Loans measured on a collective basis generally have an ACL comprised of a quantitative, or modeled, component that is supplemented by a framework of qualitative factors, as discussed below. The Company will continue to monitor its loan pools on an ongoing basis and adjust accordingly as the risk characteristics of the financial assets may change over time. If a given financial asset does not share similar risk characteristics with other financial assets, the Company shall measure expected credit losses on an individual, rather than on a collective basis. Loans evaluated on an individual basis generally have an ACL that is measured in reference to any collateral securing the loan and/or expected cash flows which are specific to the borrower. Allowance Calculation Methodology The Company generally estimates expected credit losses over the contractual term of its loans. The contractual term is adjusted for estimated prepayments when appropriate. The quantitative, or modeled, component of the ACL is primarily based on statistical models that use known or estimated data as of the balance sheet date and forecasted data over the reasonable and supportable period. Known and estimated data include current probability and timing of default, loss rate and recovery exposure at default, timing and amount of estimated prepayments, timing and amount of expected draws (for unfunded lending commitments), and relevant risk characteristics. Certain of the Company’s commercial portfolios have limited internal historical loss data and use external credit loss information, including historical charge-off and balance data for peer banking institutions. The Company obtains historical and forecast macroeconomic information to inform its view of the long-term condition of the economy. Forward-looking macroeconomic factors considered in the Company’s consumer model include, unemployment rate, unemployment insurance claims, gross domestic product (GDP), housing prices, and retail sales. Forward-looking macroeconomic factors are incorporated into the Company’s commercial model for a two-year reasonable and supportable economic forecast period followed by a one-year reversion period during which expected credit losses are expected to revert back on a straight-line basis to historical losses unadjusted for economic conditions. The reasonable and supportable economic forecast period and reversion methodology are accounting estimates which may change in future periods as a result of changes to the current macroeconomic environment. The quantitative, or modeled, portion of ACL is estimated using a DCF approach. The Company’s statistical models produce expected cash flows, which are then discounted at the effective interest rate to derive net present value. The effective interest rate is calculated based on the periodic interest income received from the loan’s contractual cash flows and the net investment in the loan, which includes deferred origination fees and costs, to provide a constant rate of return over the contractual loan term. This net present value is then compared to the amortized cost basis to derive the initial expected credit losses. Under the DCF approach, the provision for credit losses includes credit loss expense in subsequent periods relating to the discounting effect due to the passage of time after the initial recognition of ACL on originated HFI loans at amortized cost. The Company also considers the need for qualitative adjustments to the modeled estimate of expected credit losses. For this purpose, the Company established a qualitative factor framework to periodically assess qualitative adjustments to address certain identified elements that are not directly captured by the statistically modeled expected credit loss. The Company also obtains forecast macroeconomic information to inform its view of the long-term condition of the economy. These factors may include the impact of the non-modeled macroeconomic outlook, forecast unemployment rate and insurance claims, risk rating downgrades, changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in underwriting and other external factors. Zero Credit Loss Expectation Exception The Company has a zero loss expectation when the loans and securities available for sale, or portions thereof, are issued or guaranteed by certain U.S. government entities or agencies, as those entities or agencies have a long history of no defaults and the highest credit ratings issued by rating agencies. Loans held for investment and securities available for sale, or portions thereof, which meet this criterion do not have an ACL. Reserve for Unfunded Lending Commitments The ACL includes an estimate for expected credit losses on off-balance sheet commitments to extend credit and unused lines of credit. The Company estimates these expected credit losses for the unfunded portion of the commitments that are not unconditionally cancellable depending on the likelihood that funding will occur. The reserve for unfunded lending commitments is reported in “Other liabilities” on the Balance Sheet. Individually Assessed Loans Loans that do not share similar risk characteristics with other financial assets, including collateral-dependent loans, are individually assessed for purposes of measuring expected credit losses using the DCF approach. For loans that are determined to be collateral dependent, the ACL is determined based on the fair value of the collateral. Loans are considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially satisfied through sale or operation of the collateral. For such loans, the ACL is calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. Purchased Credit Deteriorated Assets PCD assets are acquired financial assets (or groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment. The Company considers indicators such as loan rating, FICO score, days past due status, nonaccrual status, charge-off status, bankruptcy, modifications or risk rating to determine whether an acquired asset meets the definition of PCD. PCD assets are recorded on the acquisition date at their purchase price plus any related initial ACL, which results in a “gross-up” of the asset’s initial amortized cost basis. Recognition of the initial ACL upon the acquisition of PCD assets does not impact net income. Changes in estimates of expected credit losses after acquisition are recognized through the provision for credit losses. Acquired non-PCD assets are accounted for in a manner similar to originated financial assets, whereby any initial ACL is recorded through the “Provision for credit losses” on the Income Statement. Charge-Offs Charge-offs are recorded when the Company determines that a loan balance is uncollectible or a loss-confirming event has occurred. Loss confirming events usually involve the receipt of specific adverse information about the borrower and may include borrower delinquency status, bankruptcy, foreclosure, or receipt of an asset valuation indicating a shortfall between the value of the collateral and the book value of the loan when that collateral asset is the sole source of repayment. A full or partial charge-off reduces the amortized cost basis of the loan and the related ACL. Unsecured personal loans are charged-off when a borrower is (i) contractually 120 days past due or (ii) two payments past due and has filed for bankruptcy or is deceased. Servicing Assets Servicing assets are capitalized as separate assets when loans are sold and servicing is retained. The Company records servicing assets at their estimated fair values. Servicing asset fair value is based on the excess of the contractual servicing fee over an estimated market servicing rate. When servicing assets are recognized from the sale of loans originated by the Company, the fair value of the servicing asset is included as a component of the gain or loss on the loan sale and reported within “Marketplace revenue” on the Income Statement. Subsequent changes in fair value are reported within “Servicing fees” in “Marketplace revenue” during the period in which the changes occur. Servicing assets are reported in “Other assets” on the Balance Sheet. Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. Fair value is based on an exit price notion that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Certain of the Company’s assets and liabilities are recorded at fair value and measured on either a recurring or nonrecurring basis. Assets and liabilities that are recorded at fair value on a recurring basis require a fair value measurement at each reporting period. The fair value hierarchy includes a three-level hierarchy that assigns the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. Level 1 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 — Unobservable inputs. Unobservable inputs require greater judgment in measuring fair value. In instances where there is limited or no observable market data, fair value measurements for assets and liabilities are based primarily upon the Company’s own estimates, and the measurements reflect information and assumptions that management believes a market participant would use in pricing the asset or liability. 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” 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. Property, Equipment and Software, net Property, equipment and software are carried at cost less accumulated depreciation and amortization. The Company uses the straight-line method of depreciation and amortization. Estimated useful lives range from three years to five years for furniture and fixtures, computer equipment, and software. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. Internally developed software is capitalized when preliminary development efforts are successfully completed and it is probable that the project will be completed, and the software will be used as intended. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts, and costs incurred for upgrades and enhancements to add functionality of the software. Other costs are expensed as incurred. The Company evaluates impairments of its property, equipment and software whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the asset is not recoverable, measurement of an impairment loss is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. Goodwill and Other Intangible Assets Goodwill is recorded when the purchase price of an acquired business exceeds the fair value of the net assets acquired. Goodwill is assigned to the Company’s reporting units at the acquisition date according to the expected economic benefits that the acquired business will provide to the reporting unit. A reporting unit is a business operating segment or a component of a business operating segment. The Company identifies its reporting units based on how the operating segments and reporting units are managed. Accordingly, the Company allocated goodwill to the LC Bank operating segment. The goodwill of each reporting unit is tested for impairment annually or more frequently in certain circumstances. The Company’s annual impairment testing is performed in the fourth quarter of each calendar year. Impairment exists when the carrying value of goodwill exceeds its estimated fair value. Adverse changes in impairment indicators such as lower than forecast financial performance, increased competition, increased regulatory oversight, or unplanned changes in operations could result in impairment. The Company can elect to either qualitatively assess goodwill for impairment, or bypass the qualitative test and proceed directly to a quantitative test. If the Company performs a qualitative assessment of goodwill to test for impairment and concludes it is more likely than not that the estimated fair value of a reporting unit is greater than its carrying value, a quantitative test is not required. However, if we determine it is more likely than not that a reporting unit’s fair value is less than its carrying amount, a quantitative assessment is performed to determine if goodwill impairment exists. Under the quantitative impairment assessment, the fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. Other intangible assets with determinable lives are recorded at their fair value upon completion of a business acquisition or certain other transactions, and generally represent the value of customer contracts or relationships. Such assets are amortized over their useful lives in a manner that best reflects their economic benefit, which may include straight-line or accelerated methods of amortization. Other intangible assets are reviewed for impairment quarterly and when events or changes in circumstances indicate that their carrying amount may not be recoverable. The Company does not have indefinite-lived intangible assets other than goodwill. Intangible assets are reported in “Other assets” on the Balance Sheet. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities in “Other liabilities” on the Balance Sheet. Associated legal expense is recorded in “Other non-interest expense” on the Income Statement. Such liabilities and associated expenses are recorded when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company will also disclose a range of exposure to incremental loss when such amounts can be estimated and are reasonably possible to occur in future periods. In estimating the Company’s exposure to loss contingencies, if an amount within the estimated range of loss is the best estimate, that amount will be accrued. However, if there is no amount within the estimated range of loss that is the best estimate, the Company will accrue the minimum amount within the range, and disclose the amount up to the high end of the range as an exposure to incremental loss, if such amount is considered reasonably possible. Such estimates are based on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability and records an adjustment to its estimate in the period in which the adjustment is probable and an amount or range can be reasonably estimated. The determination of an expected contingent liability and associated litigation expense requires the Company to make assumptions related to the outcome of these matters. Due to the inherent uncertainties of loss contingencies, the Company’s estimates may be different than the actual outcomes. Legal fees, including legal fees associated with loss contingencies, are recognized as incurred and included in “Professional services” expense on the Income Statement. Stock-based Compensation Stock-based compensation includes expense primarily associated with restricted stock units ( RSUs) and performance-based restricted stock units (PBRSUs), as well as expense associated with stock issued related to acquisitions. Stock-based compensation expense is based on the grant date fair value of the award. The cost is generally recognized over the vesting period on a straight-line basis. Forfeitures are recognized as incurred. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers the available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. If the Company determines that it is able to realize its deferred tax assets in the future in excess of the net recorded amount, the Company decreases the deferred tax asset valuation allowance, which reduces the provision for income taxes. Uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company recognizes interest and penalties, if any, related to uncertain tax positions in “Income tax benefit (expense)” on the Income Statement. Earnings Per Share Basic earnings per share (Basic EPS) attributable to common stockholders is computed by dividing net income attributable to LendingClub by the weighted-average number of common shares outstanding during the period. Diluted earnings per share (Diluted EPS) is computed by dividing net income attributable to LendingClub by the weighted-average number of common shares outstanding during the period, adjusted for the effects of dilutive issuances of shares of common stock, which predominantly include incremental shares issued for outstanding RSUs, PBRSUs, and stock options. PBRSUs are included in dilutive shares to the extent the pre-established performance targets have been or are estimated to be satisfied as of the reporting date. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding RSUs, PBRSUs, and stock options are excluded from the computation of Diluted EPS in periods in which the effect would be antidilutive. For periods with more than one class of common shares, the Company computes Basic and Diluted EPS using the two-class method, which is an allocation of net income among the holders of each class of common shares. Consolidation of Variable Interest Entities A variable interest entity (VIE) is a legal entity that has either a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. The Company’s variable interest arises from contractual, ownership or other monetary interests in the entity, which change with fluctuations in the fair value of the entity’s net assets. A VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance, and the obligation to absorb losses or the right to receiv |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition | Business Acquisition On February 1, 2021, the Company completed the Acquisition. Upon closing, LendingClub acquired all outstanding voting equity interests of Radius in exchange for total consideration as follows: Cash paid $ 140,256 Fair value of common stock issued (1) 40,808 Consideration related to share-based payments (2) 5,742 Total consideration paid $ 186,806 (1) Calculated using the closing stock price of $10.85 on January 29, 2021, the most recent trading day preceding the Acquisition, multiplied by 3,761,114 shares issued pursuant to the Plan of Merger. (2) In connection with the Acquisition, LendingClub agreed to convert equity awards held by Radius employees into cash and LendingClub awards pursuant to the Plan of Merger. The Acquisition was accounted for as a purchase business combination. Accordingly, the assets acquired and liabilities assumed are presented at their fair values determined as of the Acquisition date. Determining fair value of identifiable assets, particularly intangibles, loans (including PCD loans), and liabilities acquired and assumed based on DCF analysis or other valuation techniques required management to make estimates that are highly subjective in nature based on available information. The following table presents an allocation of the total consideration paid to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed: Assets acquired: Cash and due from banks $ 18,184 Interest-bearing deposits in banks 650,052 Total cash and cash equivalents 668,236 Securities available for sale at fair value 259,037 Loans and leases held for investment 1,589,054 Allowance for loan and lease losses (12,440) Loans and leases held for investment, net 1,576,614 Property, equipment and software 1,926 Goodwill 75,717 Other assets 86,482 Total assets 2,668,012 Liabilities assumed: Non-interest bearing deposits 146,187 Interest-bearing deposits 1,862,272 Total deposits 2,008,459 Short-term borrowings 9,870 Advances from PPPLF 420,962 Other long-term debt 18,630 Other liabilities 23,285 Total liabilities 2,481,206 Total consideration paid $ 186,806 The table below presents certain unaudited pro forma financial information for illustrative purposes only, for the year ended December 31, 2021, as if the Acquisition took place on the first day of the preceding year. The pro forma information combines the historical results of Radius with the Company’s, adjusting for the estimated impact of certain fair value adjustments for the respective periods. The pro forma information does not reflect changes to the provision for credit losses resulting from recording loan assets as fair value, cost savings, or business synergies. As a result, actual amounts would have differed from the unaudited pro forma information presented and the differences could be significant. Year Ended December 31, 2021 Total net revenue $ 825,701 Net income $ 11,644 For the year ended December 31, 2021, total net revenue of $73.6 million from the Acquisition is included on the Income Statement. |
Marketplace Revenue
Marketplace Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Marketplace Revenue | Marketplace Revenue Marketplace revenue consists of (i) origination fees, (ii) servicing fees, (iii) gain 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 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: Year Ended December 31, 2023 2022 2021 Origination fees $ 279,146 $ 499,179 $ 416,839 Servicing fees 98,613 80,609 87,639 Gain on sales of loans 47,839 95,335 70,116 Net fair value adjustments (134,114) 8,503 3,986 Total marketplace revenue $ 291,484 $ 683,626 $ 578,580 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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 of common stock and Series A Preferred Stock: Year Ended December 31, 2023 2022 2021 Common Stock Common Stock Common Stock Preferred Stock (1) Basic EPS: Net income attributable to stockholders $ 38,939 $ 289,685 $ 18,456 $ 124 Weighted-average common shares – Basic 108,466,179 103,547,305 97,486,754 653,118 Basic EPS $ 0.36 $ 2.80 $ 0.19 $ 0.19 Diluted EPS: Net income attributable to stockholders $ 38,939 $ 289,685 $ 18,580 $ — Weighted-average common shares – Diluted 108,468,857 104,001,288 102,147,353 — Diluted EPS $ 0.36 $ 2.79 $ 0.18 $ 0.00 (1) Presented on an as-converted basis. In March 2020, the Company issued 195,628 shares of mandatorily convertible, non-voting, Series A Preferred Stock, par value of $0.01 per share. The Series A Preferred Stock was considered a separate class of common shares for purposes of calculating EPS because it participated in earnings similar to common stock and did not receive any significant preferences over common stock. As a result of the preferred stock outstanding during the first quarter of 2021, Basic and Diluted EPS were computed using the two-class method, which is a net income allocation that determines EPS for each class of common stock according to dividends declared and participation rights in undistributed income (loss). The remaining preferred stock was sold during the first quarter of 2021 and, therefore, there were no shares of preferred stock outstanding as of March 31, 2021. |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Dec. 31, 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 AFS securities were as follows: December 31, 2023 Amortized Gross Gross Fair Senior asset-backed securities related to Structured Program transactions $ 1,165,513 $ 10,932 $ (42) $ 1,176,403 U.S. agency residential mortgage-backed securities 261,885 208 (37,497) 224,596 U.S. agency securities 93,452 — (13,348) 80,104 Other asset-backed securities related to Structured Program transactions (1) 70,662 2,731 — 73,393 Mortgage-backed securities 42,511 — (5,435) 37,076 Other asset-backed securities 26,710 25 (634) 26,101 Municipal securities 3,257 — (668) 2,589 Total securities available for sale (2) $ 1,663,990 $ 13,896 $ (57,624) $ 1,620,262 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 December 31, 2023, $70.1 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 December 31, 2023 and 2022, includes $359.5 million and $319.0 million, respectively, of securities pledged as collateral at fair value. A summary of AFS securities with unrealized losses for which a credit valuation allowance has not been recorded, aggregated by period of continuous unrealized loss, is as follows: Less than 12 months Total December 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Senior asset-backed securities related to Structured Program transactions $ 38,359 $ (42) $ — $ — $ 38,359 $ (42) U.S. agency residential mortgage-backed securities 6,497 (149) 201,426 (37,348) 207,923 (37,497) U.S. agency securities — — 80,104 (13,348) 80,104 (13,348) Mortgage-backed securities 13,973 (740) 23,103 (4,695) 37,076 (5,435) Other asset-backed securities 12,911 (50) 8,538 (584) 21,449 (634) Municipal securities — — 2,589 (668) 2,589 (668) Total securities with unrealized losses $ 71,740 $ (981) $ 315,760 $ (56,643) $ 387,500 $ (57,624) 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) At December 31, 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 December 31, 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 “ Note 1. Summary of Significant Accounting Policies. ” There was no activity in the allowance for AFS securities during 2023 and 2022. The following table presents the activity in the credit valuation allowance for AFS securities, by major security type, during 2021: Credit Valuation Allowance Asset-backed securities related to Structured Program transactions Beginning balance as of December 31, 2020 $ (18,736) Reversal of credit loss expense 3,382 Reversal of allowance arising from PCD financial assets 15,354 Ending balance as of December 31, 2021 $ — The contractual maturities of AFS securities were as follows: December 31, 2023 Amortized Cost Fair Value Weighted- average Yield (1) Due after 1 year through 5 years: Senior asset-backed securities related to Structured Program transactions $ 1,165,513 $ 1,176,403 Other asset-backed securities related to Structured Program transactions 70,662 73,393 U.S. agency securities 9,000 8,746 Mortgage-backed securities 1,760 1,596 Other asset-backed securities 421 423 Municipal securities 154 139 U.S. agency residential mortgage-backed securities 3 3 Total due after 1 year through 5 years 1,247,513 1,260,703 7.57 % Due after 5 years through 10 years: U.S. agency securities 18,848 17,545 Other asset-backed securities 14,873 14,842 U.S. agency residential mortgage-backed securities 4,869 4,623 Mortgage-backed securities 2,024 1,713 Municipal securities 466 410 Total due after 5 years through 10 years 41,080 39,133 2.36 % Due after 10 years: U.S. agency residential mortgage-backed securities 257,013 219,970 U.S. agency securities 65,604 53,813 Mortgage-backed securities 38,727 33,767 Other asset-backed securities 11,416 10,836 Municipal securities 2,637 2,040 Total due after 10 years 375,397 320,426 2.91 % Total securities available for sale $ 1,663,990 $ 1,620,262 5.10 % (1) The weighted-average yield is computed using the average quarter end amortized cost during the year ended December 31, 2023. There were no sales of AFS securities during 2023 and 2022. Proceeds and gross realized gains and losses from AFS securities during 2021 were as follows: Year Ended December 31, 2021 Proceeds $ 106,192 Gross realized gains $ 708 Gross realized losses $ (952) |
Loans and Leases Held for Inves
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance For Loan and Lease Losses | 12 Months Ended |
Dec. 31, 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 HFI at amortized cost. Other HFI and all HFS loans are recorded at fair value with the Company’s election of the fair value option. Accrued interest receivable is excluded from the amortized cost basis of loans and leases HFI and is reported within “ Other assets Balance Sheet . Net accrued interest receivable related to loans and leases HFI at amortized cost was $32.2 million and $27.9 million as of December 31, 2023 and 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: December 31, 2023 December 31, 2022 Unsecured personal $ 3,726,830 $ 3,866,373 Residential mortgages 183,050 199,601 Secured consumer 250,039 194,634 Total consumer loans held for investment 4,159,919 4,260,608 Equipment finance (1) 110,992 160,319 Commercial real estate 380,322 373,501 Commercial and industrial (2) 199,069 238,726 Total commercial loans and leases held for investment 690,383 772,546 Total loans and leases held for investment 4,850,302 5,033,154 Allowance for loan and lease losses (3) (310,387) (327,852) Loans and leases held for investment, net (4) $ 4,539,915 $ 4,705,302 (1) Comprised of sales-type leases for equipment. See “ Note 19. Leases ” for additional information. (2) Includes $6.4 million and $67.0 million of pledged loans under the Paycheck Protection Program (PPP), as of December 31, 2023 and 2022, respectively . (3) Comprised of $355.8 million and $340.4 million in allowance for future estimated net charge-offs on existing portfolio balances, net of a negative allowance of $45.4 million and $12.5 million for expected recoveries of amounts previously charged-off as of December 31, 2023 and 2022, respectively . (4) As of December 31, 2023 and 2022 , the Company had $3.5 billion and $283.6 million in loans pledged as collateral under the FRB Discount Window, respectively. In addition, as of December 31, 2023 and 2022, the Company had $479.0 million and $156.2 million in loans pledged to the FHLB of Des Moines, respectively. December 31, 2023 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 4,159,919 $ 298,061 $ 3,861,858 7.2 % Total commercial loans and leases held for investment 690,383 12,326 678,057 1.8 % Total loans and leases held for investment $ 4,850,302 $ 310,387 $ 4,539,915 6.4 % 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 ALLL to loans and leases HFI at amortized cost. The activity in the ACL by portfolio segment was as follows: Year Ended December 31, 2023 2022 2021 Consumer Commercial Total 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 (1) 244,518 (948) 243,570 265,359 1,320 266,679 136,789 4,162 140,951 Initial allowance for PCD loans acquired during the period — — — — — — 603 11,837 12,440 Charge-offs (2) (278,105) (3,002) (281,107) (85,247) (2,226) (87,473) (8,789) (1,663) (10,452) Recoveries 19,159 913 20,072 3,565 692 4,257 209 1,241 1,450 Allowance for loan and lease losses, end of period $ 298,061 $ 12,326 $ 310,387 $ 312,489 $ 15,363 $ 327,852 $ 128,812 $ 15,577 $ 144,389 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) 13 (5) 18 629 647 — 1,231 1,231 Reserve for unfunded lending commitments, end of period (3) $ — $ 1,873 $ 1,873 $ 18 $ 1,860 $ 1,878 $ — $ 1,231 $ 1,231 (1) For the year ended December 31, 2021, includes $6.9 million of credit loss expense for acquired loans. (2) 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. (3) Relates to $78.1 million, $138.0 million and $110.8 million of unfunded commitments as of December 31, 2023, 2022 and 2021, respectively . The following table presents charge-offs by origination year for the year ended December 31, 2023: Gross Charge-Offs by Origination Year 2023 2022 2021 2020 2019 Prior Total Unsecured personal $ 23,340 $ 157,502 $ 94,147 $ — $ — $ — $ 274,989 Residential mortgages — — — — — — — Secured consumer 202 2,233 681 — — — 3,116 Total consumer loans held for investment 23,542 159,735 94,828 — — — 278,105 Equipment finance — — — — — — — Commercial real estate — — — — — — — Commercial and industrial — — 1,369 82 318 1,233 3,002 Total commercial loans and leases held for investment — — 1,369 82 318 1,233 3,002 Total loans and leases held for investment $ 23,542 $ 159,735 $ 96,197 $ 82 $ 318 $ 1,233 $ 281,107 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: December 31, 2023 Term Loans and Leases by Origination Year 2023 2022 2021 2020 2019 Prior Total Unsecured personal Current $ 1,498,737 $ 1,688,512 $ 438,296 $ — $ — $ — $ 3,625,545 30-59 days past due 9,034 17,017 6,665 — — — 32,716 60-89 days past due 7,767 15,538 6,251 — — — 29,556 90 or more days past due 6,924 16,564 6,644 — — — 30,132 Total unsecured personal (1) 1,522,462 1,737,631 457,856 — — — 3,717,949 Residential mortgages Current 53 48,473 54,855 29,960 18,917 29,041 181,299 30-59 days past due — — — — 1,331 420 1,751 60-89 days past due — — — — — — — 90 or more days past due — — — — — — — Total residential mortgages 53 48,473 54,855 29,960 20,248 29,461 183,050 Secured consumer Current 125,618 97,084 21,949 — 2,460 — 247,111 30-59 days past due 364 1,295 417 — — — 2,076 60-89 days past due 94 373 168 — — — 635 90 or more days past due — 153 64 — — — 217 Total secured consumer 126,076 98,905 22,598 — 2,460 — 250,039 Total consumer loans held for investment $ 1,648,591 $ 1,885,009 $ 535,309 $ 29,960 $ 22,708 $ 29,461 $ 4,151,038 (1) Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of December 31, 2023, the basis adjustment totaled $8.9 million and represents a reduction to the amortized cost of the hedged loans. See “ Note 9. 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: December 31, 2023 Term Loans and Leases by Origination Year 2023 2022 2021 2020 2019 Prior Total Guaranteed Amount (1) Equipment finance Pass $ 2,945 $ 33,430 $ 26,311 $ 7,754 $ 9,411 $ 6,288 $ 86,139 $ — Special mention — 15,235 1,962 5,873 1,335 — 24,405 — Substandard — — — 448 — — 448 — Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 2,945 48,665 28,273 14,075 10,746 6,288 110,992 — Commercial real estate Pass 49,067 94,247 34,535 43,058 52,160 78,062 351,129 33,423 Special mention — — — — — 13,706 13,706 — Substandard — 3,598 7,716 — — 2,139 13,453 9,425 Doubtful — — — — — — — — Loss — — 1,515 — — 519 2,034 1,471 Total commercial real estate 49,067 97,845 43,766 43,058 52,160 94,426 380,322 44,319 Commercial and industrial Pass 40,636 60,352 39,304 9,525 10,282 11,626 171,725 104,928 Special mention — 10,881 1,532 729 137 444 13,723 9,384 Substandard — 2,304 5,426 673 1,045 1,434 10,882 6,908 Doubtful — 649 — 548 — 286 1,483 1,214 Loss — — — — — 1,256 1,256 1,229 Total commercial and industrial 40,636 74,186 46,262 11,475 11,464 15,046 199,069 123,663 Total commercial loans and leases held for investment $ 92,648 $ 220,696 $ 118,301 $ 68,608 $ 74,370 $ 115,760 $ 690,383 $ 167,982 (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 at amortized cost within the commercial portfolio segment: December 31, 2023 30-59 60-89 90 or More Total Days Past Due Equipment finance $ 1,265 $ — $ — $ 1,265 Commercial real estate — 3,566 1,618 5,184 Commercial and industrial (1) 12,261 1,632 1,515 15,408 Total commercial loans and leases held for investment $ 13,526 $ 5,198 $ 3,133 $ 21,857 December 31, 2022 30-59 60-89 90 or More Total Days Past Due 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. Loan Modifications The Company has the following programs to modify loans for borrowers experiencing financial difficulty. The table below presents the amortized cost of loans that were modified during the year ended December 31, 2023, by modification type and delinquency status: Combination – Interest Payment Reduction and Term Extension Debt Settlement Unsecured personal Current $ 7,741 $ 70 30-59 days 348 85 60-89 days 172 669 90 or more days 265 6,526 Total loan modifications $ 8,526 $ 7,350 Percentage of total unsecured personal loans at amortized cost as of end of period 0.2 % 0.2 % The Company’s Combination modifications primarily provide borrowers with a short-term reduction in monthly payments, resulting in a term extension of approximately six months or greater compared to the original maturity date of the loan. In addition, the Company’s Debt Settlement modifications, which include engaging with third-party debt settlement companies, reduce the principal and interest amounts owed by borrowers. The Company typically charges-off such Debt Settlement loans within a few months following the modification, as payments under the modified agreement are less than the original contractual amounts. In the event of a borrower defaulting at 120 days past due, the modified loan is charged-off at the time of default. The total amount of charge-offs subsequent to modification related to Combination and Debt Settlement modifications was $0.5 million and $53.1 million, respectively, during the year ended December 31, 2023. 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: Year Ended December 31, 2023 2022 Nonaccrual (1) Nonaccrual with no related ACL (2) Nonaccrual (1) Nonaccrual with no related ACL (2) Unsecured personal $ 30,132 $ — $ 16,255 $ — Residential mortgages 312 312 331 331 Secured consumer 217 — 188 — Total nonaccrual consumer loans held for investment 30,661 312 16,774 331 Equipment finance — — 898 39 Commercial real estate 9,663 2,187 1,018 1,018 Commercial and industrial 4,058 1,590 16,137 1,229 Total nonaccrual commercial loans and leases held for investment (3) 13,721 3,777 18,053 2,286 Total nonaccrual loans and leases held for investment $ 44,382 $ 4,089 $ 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 December 31, 2023 and 2022. (2) Subset of total nonaccrual loans and leases. (3) Includes $10.4 million and $4.9 million in loan balances guaranteed by the SBA as of December 31, 2023 and 2022, respectively. Year Ended December 31, 2023 2022 Nonaccrual Nonaccrual Ratios (1) Nonaccrual Nonaccrual Ratios (1) Total nonaccrual consumer loans held for investment $ 30,661 0.7 % $ 16,774 0.4 % Total nonaccrual commercial loans and leases held for investment 13,721 2.0 % 18,053 2.3 % Total nonaccrual loans and leases held for investment $ 44,382 0.9 % $ 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 Certain loans on non-accrual status may be considered collateral-dependent loans if the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially through sale or operation of the collateral. Expected credit losses for the Company’s collateral-dependent loans are calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. |
Securitizations and Variable In
Securitizations and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Securitizations and Variable Interest Entities | Securitizations and Variable Interest Entities For additional information regarding the consolidation of VIEs, s ee “ Note 1. Summary of Significant Accounting Policies .” VIE Assets and Liabilities The following 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 also has various forms of involvement with VIEs, including servicing loans and holding senior asset-backed securities or subordinated interests in the VIEs. Additionally, the carrying amount of assets and liabilities in the tables below exclude intercompany balances that were eliminated in consolidation. December 31, 2023 December 31, 2022 Consolidated Unconsolidated Total Consolidated Unconsolidated Total Assets Restricted cash $ 3,454 $ — $ 3,454 $ 8,048 $ — $ 8,048 Securities available for sale at fair value — 1,249,796 1,249,796 — 17,717 17,717 Loans held for investment at fair value 550 — 550 3,994 — 3,994 Retail and certificate loans held for investment at fair value 420 — 420 1,946 — 1,946 Other assets 14 31,531 31,545 206 10,464 10,670 Total assets $ 4,438 $ 1,281,327 $ 1,285,765 $ 14,194 $ 28,181 $ 42,375 Liabilities Borrowings $ 2,468 $ — $ 2,468 $ 8,085 $ — $ 8,085 Retail notes and certificates 420 — 420 1,946 — 1,946 Other liabilities 4 3,301 3,305 29 — 29 Total liabilities 2,892 3,301 6,193 10,060 — 10,060 Total net assets (maximum loss exposure) $ 1,546 $ 1,278,026 $ 1,279,572 $ 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: December 31, 2023 2022 2021 Fair value of consideration received: Cash $ 172,397 $ 5,320 $ — Asset-backed securities retained 1,299,313 2,180 — Other assets (liabilities) 16,740 (3,794) — Total consideration 1,488,450 3,706 — Deconsolidation of debt — 36,072 — Fair value of loans sold (1,474,077) (39,519) — Gain on sales of loans (1) $ 14,373 $ 259 $ — Cash proceeds from continuing involvement: Servicing and other administrative fees $ 5,475 $ 8,618 $ 23,586 Interest received on asset-backed securities retained $ 22,786 $ 7,285 $ 9,136 (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 Structured Program transactions with its newly launched Structured Certificates, where it retains the senior securities at a fixed rate, in addition to the amount required pursuant to the U.S. Risk Retention Rules, and sells the residual certificates. See “ Note 5. Securities Available for Sale ” for the securities retained in the Company’s investment portfolio related to such transactions. 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 residual certificates are subject principally to the credit and prepayment risk stemming from the underlying unsecured personal loans. As of December 31, 2023, the aggregate unpaid principal balance held by unconsolidated VIEs was $1.6 billion, of which $9.5 million was attributable to off-balance sheet loans that were 30 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 $14.9 million was attributable to off-balance sheet loans that were 30 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 Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements For a description of the fair value hierarchy and the Company’s fair value methodologies, see “ Note 1. Summary of Significant Accounting Policies. ” The Company records certain assets and liabilities at fair value as listed in the following tables. Recurring Fair Value Measurements The following tables present, by level within the fair value hierarchy, the Company’s assets and liabilities measured at fair value on a recurring basis: December 31, 2023 Level 1 Level 2 Level 3 Balance at Assets: Loans held for sale at fair value $ — $ — $ 407,773 $ 407,773 Loans held for investment at fair value — — 262,190 262,190 Retail and certificate loans held for investment at fair value — — 10,488 10,488 Securities available for sale: Senior asset-backed securities related to Structured Program transactions — — 1,176,403 1,176,403 U.S. agency residential mortgage-backed securities — 224,596 — 224,596 U.S. agency securities — 80,104 — 80,104 Other asset-backed securities related to Structured Program transactions — — 73,393 73,393 Mortgage-backed securities — 37,076 — 37,076 Other asset-backed securities — 26,101 — 26,101 Municipal securities — 2,589 — 2,589 Total securities available for sale — 370,466 1,249,796 1,620,262 Servicing assets — — 77,680 77,680 Other assets — 3,525 — 3,525 Total assets $ — $ 373,991 $ 2,007,927 $ 2,381,918 Liabilities: Borrowings $ — $ — $ 2,468 $ 2,468 Retail notes and certificates — — 10,488 10,488 Other liabilities — 12,072 7,655 19,727 Total liabilities $ — $ 12,072 $ 20,611 $ 32,683 December 31, 2022 Level 1 Level 2 Level 3 Balance at Fair Value 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 Mortgage-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 and certificates — — 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 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 years ended December 31, 2023 and 2022. As of December 31, 2023, the Company updated the significant unobservable inputs used in the fair value measurement of its Level 3 assets from a cumulative credit loss rate and cumulative prepayment rate to an annualized net charge-off rate and annualized prepayment rate, respectively. The Company believes the updated inputs are more comparable to those used by other companies in the financial services industry. As such, the prior period comparative disclosures below have been conformed to the current period presentation. The following significant unobservable inputs were used in the fair value measurement of the Company’s Level 3 assets: • Discount rate – The weighted-average rate at which the expected cash flows are discounted to arrive at the net present value of the loan. The discount rate is primarily determined based on marketplace investor return expectations. • Annualized net charge-off rate – The annualized rate of average charge-offs, net of recoveries, expressed as a percentage of the average principal balance of loan pools with similar risk characteristics. The calculation of this annualized rate also incorporates a qualitative estimate of credit losses based on the Company’s current macroeconomic outlook. • Annualized prepayment rate – The annualized rate of prepayments expressed as a percentage of the average principal balance of loan pools with similar risk characteristics. An increase in each of the inputs above, in isolation, would result in a decrease in the fair value measurement. The sensitivity calculations are hypothetical and should not be considered to be predictive of future performance. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Changes in one factor may lead to changes in other factors, which could impact the hypothetical results. Loans Held for Sale at Fair Value In the third quarter of 2023, the Company established an extended seasoning program for which it began accumulating loans into the HFS portfolio to meet investor demand for seasoned loans. As a result, the balance of the HFS portfolio increased significantly compared to the same period in the prior year. Significant Unobservable Inputs The following significant unobservable inputs were used in the fair value measurement of loans HFS: December 31, 2023 December 31, 2022 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rate 8.1 % 10.3 % 9.0 % 5.0 % 12.6 % 9.1 % Annualized net charge-off rate (1) 2.7 % 12.9 % 6.5 % 1.9 % 23.2 % 11.6 % Annualized prepayment rate (1) 15.7 % 22.5 % 19.9 % 18.5 % 27.7 % 22.9 % (1) The weighted-average rate is calculated using the original principal balance of each loan pool. Fair Value Sensitivity The sensitivity of loans HFS at fair value to adverse changes in key assumptions was as follows: December 31, 2023 December 31, 2022 Loans held for sale at fair value $ 407,773 $ 110,400 Expected remaining weighted-average life (in years) 1.5 1.4 Discount rate: 100 basis point increase $ (5,093) $ (1,334) 200 basis point increase $ (10,051) $ (2,643) Annualized net charge-off rate: 10% increase $ (5,102) $ (2,289) 20% increase $ (10,184) $ (4,505) Annualized prepayment rate: 10% increase $ (851) $ (529) 20% increase $ (1,628) $ (1,008) Fair Value Reconciliation The following table presents loans HFS at fair value activity: Balance at December 31, 2021 $ 142,370 Originations and purchases 9,045,701 Sales (9,039,892) Principal payments (31,253) Transfers (11,907) Fair value adjustments recorded in earnings 5,381 Balance at December 31, 2022 $ 110,400 Originations and purchases 4,942,457 Sales (4,634,155) Principal payments (70,350) Transfers 195,106 Fair value adjustments recorded in earnings (135,685) Balance at December 31, 2023 $ 407,773 The following table summarizes the aggregate fair value of the Company’s HFS loans, as well as the amount that was 90 days or more past due: December 31, 2023 December 31, 2022 Total 90 or more days past due Total 90 or more days past due Aggregate unpaid principal balance $ 431,955 $ 1,395 $ 114,920 $ 188 Cumulative fair value adjustments (24,182) (1,102) (4,520) (153) Fair value of loans held for sale $ 407,773 $ 293 $ 110,400 $ 35 Loans Held for Investment at Fair Value Significant Unobservable Inputs The following significant unobservable inputs were used in the fair value measurement of loans HFI held at fair value: December 31, 2023 December 31, 2022 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rate 8.4 % 16.2 % 12.8 % 8.8 % 17.1 % 12.7 % Annualized net charge-off rate (1) 1.9 % 5.9 % 3.7 % 1.6 % 5.3 % 3.2 % Annualized prepayment rate (1) 18.6 % 27.7 % 22.6 % 19.5 % 31.0 % 24.0 % (1) The weighted-average rate is calculated using the original principal balance of each loan pool. Fair Value Sensitivity The sensitivity of loans HFI at fair value to adverse changes in key assumptions was as follows: December 31, 2023 December 31, 2022 Loans held for investment at fair value $ 262,190 $ 925,938 Expected remaining weighted-average life (in years) 0.9 0.9 Discount rate: 100 basis point increase $ (1,957) $ (7,471) 200 basis point increase $ (3,888) $ (14,830) Annualized net charge-off rate: 10% increase $ (1,753) $ (5,574) 20% increase $ (3,595) $ (11,307) Annualized prepayment rate: 10% increase $ (857) $ (4,311) 20% increase $ (1,675) $ (7,480) Fair Value Reconciliation The following table presents loans HFI at fair value activity: Balance at December 31, 2021 $ 21,240 Purchases 954,086 Principal payments (74,393) Transfers 22,294 Interest income accretion and fair value adjustments recorded in earnings 2,711 Balance at December 31, 2022 $ 925,938 Purchases 4,243 Principal payments (485,043) Transfers (195,106) Interest income accretion and fair value adjustments recorded in earnings 12,158 Balance at December 31, 2023 $ 262,190 The following table summarizes the aggregate fair value of the Company’s HFI loans held at fair value, as well as the amount that was 90 days or more past due: December 31, 2023 December 31, 2022 Total 90 or more days past due Total 90 or more days past due Aggregate unpaid principal balance $ 281,031 $ 3,774 $ 1,002,465 $ 6,345 Cumulative fair value adjustments (18,841) (3,037) (76,527) (5,158) Fair value of loans held for investment $ 262,190 $ 737 $ 925,938 $ 1,187 Retail and Certificate Loans and Related Notes and Certificates The Company does not assume principal or interest rate risk on loans that were funded by its member payment-dependent self-directed retail program (Retail Program) because loan balances, interest rates and maturities are matched and offset by an equal balance of notes with the exact same interest rates and maturities. At December 31, 2023 and 2022, the DCF methodology used to estimate the retail note and certificate’s 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 and certificates. 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 its newly launched Structured Certificates that the Company began entering into in the second quarter of 2023. See “ Note 7. Securitizations and Variable Interest Entities ” for more information. Senior Asset-Backed Securities Related to Structured Program Transactions As of December 31, 2023, the fair value of the senior asset-backed securities related to Structured Program transactions was $1.2 billion with an expected remaining weighted-average life of 1.5 years. Discount rate, which includes credit spreads, was the significant unobservable input used to measure the fair value of this Level 3 asset. The minimum, maximum and weighted-average discount rate assumptions were 7.0% as of December 31, 2023. A hypothetical 100 and 200 basis point increase in the discount rate would decrease the fair value by $18.0 million and $36.0 million, respectively. The following table presents senior asset-backed securities related to Structured Program transactions activity: December 31, 2023 Fair value at beginning of period $ — Additions 1,225,796 Cash received (60,283) Change in unrealized gain 10,890 Fair value at end of period $ 1,176,403 Other Asset-Backed Securities Related to Structured Program Transactions Significant Unobservable Inputs The following significant unobservable inputs were used in the fair value measurement of other asset-backed securities related to Structured Program transactions: December 31, 2023 Minimum Maximum Weighted- Discount rate 8.1 % 10.3 % 9.0 % Annualized net charge-off rate (1) 4.9 % 5.9 % 5.5 % Annualized prepayment rate (1) 19.2 % 21.0 % 20.1 % (1) The weighted-average rate is calculated using the original principal balance of each security. Fair Value Sensitivity The sensitivity in the fair value of other asset-backed securities related to Structured Program transactions to changes in key assumptions was as follows: December 31, 2023 Fair value of interests held $ 73,393 Expected remaining weighted-average life (in years) 1.5 Discount rate 100 basis point increase $ (927) 200 basis point increase $ (1,836) Annualized net charge-off rate 10% increase $ (882) 20% increase $ (1,771) Annualized prepayment rate 10% increase $ (203) 20% increase $ (430) 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: December 31, 2023 Fair value at beginning of period $ 12,469 Additions 73,516 Cash received (12,634) Change in unrealized gain 42 Fair value at end of period $ 73,393 Servicing Assets Significant Unobservable Inputs The following significant unobservable inputs were used in the fair value measurement for servicing assets related to loans sold to investors: December 31, 2023 December 31, 2022 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rate 8.7 % 17.3 % 11.3 % 7.5 % 16.4 % 10.1 % Annualized net charge-off rate (1) 1.9 % 24.0 % 8.7 % 1.3 % 23.7 % 9.3 % Annualized prepayment rate (1) 15.6 % 25.7 % 20.3 % 16.3 % 30.9 % 24.4 % Market servicing rate (2) 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % (1) The weighted-average rate is calculated using the original principal balance of each loan pool. (2) The fees a willing market participant would require for the servicing of loans with similar characteristics as those in the Company’s serviced portfolio. Fair Value Sensitivity The sensitivity of the fair value of servicing assets to adverse changes in key assumptions was as follows: December 31, 2023 December 31, 2022 Fair value of servicing assets $ 77,680 $ 84,308 Expected remaining weighted-average life (in years) 1.2 1.2 Discount rate: 100 basis point increase $ (675) $ (726) 200 basis point increase $ (1,349) $ (1,451) Annualized net charge-off rate: 10% increase $ (878) $ (1,037) 20% increase $ (1,756) $ (2,074) Annualized prepayment rate: 10% increase $ (1,550) $ (1,994) 20% increase $ (3,100) $ (3,989) The Company’s selection of the most representative market servicing rates for servicing assets is inherently judgmental. The Company reviews third-party servicing rates for its loans, loans in similar credit sectors, and market servicing benchmarking analyses provided by third-party valuation firms, when available. The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions: December 31, 2023 December 31, 2022 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Market servicing rate increase by 0.10% $ (8,719) $ (10,505) Market servicing rate decrease by 0.10% $ 8,719 $ 10,505 Fair Value Reconciliation The following table presents servicing assets measured at fair value activity: Fair value at December 31, 2021 $ 67,726 Issuances (1) 93,352 Change in fair value, included in Marketplace Revenue (73,229) Other net changes (3,541) Fair value at December 31, 2022 $ 84,308 Issuances (1) 56,032 Change in fair value, included in Marketplace Revenue (62,581) Other net changes (79) Fair value at December 31, 2023 $ 77,680 (1) Represents the servicing assets recorded when loans are sold. Included in “Gain on sales of loans” within “Marketplace revenue” on the Income Statement. Financial Instruments Not Recorded at Fair Value The following tables present the carrying amount and estimated fair values, by level within the fair value hierarchy, of the Company’s assets and liabilities that are not recorded at fair value on a recurring basis: December 31, 2023 Carrying Amount Level 1 Level 2 Level 3 Balance at Assets: Loans and leases held for investment, net $ 4,539,915 $ — $ — $ 4,675,354 $ 4,675,354 Other assets 37,605 — 36,884 1,017 37,901 Total assets $ 4,577,520 $ — $ 36,884 $ 4,676,371 $ 4,713,255 Liabilities: Deposits (1) $ 1,714,889 $ — $ — $ 1,714,203 $ 1,714,203 Borrowings 6,398 — — 6,398 6,398 Other liabilities 59,015 — 36,823 22,192 59,015 Total liabilities $ 1,780,302 $ — $ 36,823 $ 1,742,793 $ 1,779,616 December 31, 2022 Carrying Amount Level 1 Level 2 Level 3 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 | 12 Months Ended |
Dec. 31, 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 As of December 31, 2023, the total notional amount, or maximum dollar exposure, of the credit derivative liabilities was $7.3 million with a fair value of $6.4 million, which was based on the combined impact of both the quantitative and qualitative credit loss forecast. For the year ended December 31, 2023, the Company recognized a loss of $6.4 million in earnings. 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 December 31, 2023: Notional Gross Derivative Liability Fair Value (1) Derivatives used for hedging: Interest rate swaps $ 1,500,000 $ (8,547) (1) Recorded in “Other liabilities” on the Balance Sheet. The following table summarizes the gains (losses) recognized on the Company’s fair value hedges for year ended December 31, 2023: Gains (losses) recognized on: Hedged item $ 8,881 Derivatives used for hedging (8,547) Interest settlement on derivative (1) 2,514 Total gains on fair value hedges (2) $ 2,848 (1) Includes accrued interest receivable and accrued interest payable. (2) Recorded in “Interest and fees on loans held for investment” on the Income Statement. The following table presents the cumulative basis adjustments for fair value hedges as of December 31, 2023: Balance Sheet Line Item Carrying Amount of Closed Portfolio (1) Cumulative Fair Value Adjustment to Hedged Item (2) Loans and leases held for investment at amortized cost $ 3,109,854 $ 8,881 (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 December 31, 2023, the amortized cost of loans designated as the hedged item in the portfolio layer hedging relationship was $1.5 billion. (2) Included in the carrying amount of the closed portfolio of loans. |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 12 Months Ended |
Dec. 31, 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: December 31, 2023 2022 Software (1) $ 209,260 $ 174,360 Leasehold improvements 30,764 31,214 Computer equipment 21,654 27,410 Furniture and fixtures 5,845 6,088 Total property, equipment and software 267,523 239,072 Accumulated depreciation and amortization (106,006) (102,599) Total property, equipment and software, net $ 161,517 $ 136,473 (1) Includes $66.9 million and $43.7 million of development in progress for internally-developed software and $4.6 million and $3.0 million of development in progress to customize purchased software as of December 31, 2023 and 2022, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 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 December 31, 2023 and 2022. The Company did not record any goodwill impairment expense during the years ended December 31, 2023, 2022 and 2021. Goodwill is not amortized, but is subject to annual impairment tests that are performed in the fourth quarter of each calendar year. For additional detail, see “ Note 1. Summary of Significant Accounting Policies. ” Intangible Assets Intangible assets consist of customer relationships. Intangible assets, net of accumulated amortization, are included in “Other assets” on the Balance Sheet. The gross and net carrying values and accumulated amortization were as follows: December 31, 2023 2022 Gross carrying value $ 54,500 $ 54,500 Accumulated amortization (42,365) (38,166) Net carrying value $ 12,135 $ 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 December 31, 2023, is as follows: 2024 $ 3,549 2025 2,901 2026 2,252 2027 1,603 2028 945 Thereafter 885 Total $ 12,135 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: December 31, 2023 2022 Deferred tax assets, net (1) $ 151,411 $ 173,687 Servicing assets (2) 78,401 85,654 Nonmarketable equity investments 42,891 38,320 Accrued interest receivable 35,793 30,901 Operating lease assets 26,611 63,872 Intangible assets, net (3) 12,135 16,334 Other 108,211 91,538 Total other assets $ 455,453 $ 500,306 (1) See “ Note 18. Income Taxes ” for additional detail. (2) Loans underlying servicing assets had a total outstanding principal balance of $9.5 billion and $11.0 billion as of December 31, 2023 and 2022, respectively. (3) See “ Note 11. Goodwill and Intangible Assets ” for additional detail. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Deposits | Deposits Deposits consist of the following: December 31, 2023 2022 Interest-bearing deposits: Savings and money market accounts $ 4,349,239 $ 3,616,657 Certificates of deposit 1,714,889 860,808 Checking accounts 937,552 1,681,095 Total $ 7,001,680 $ 6,158,560 Noninterest-bearing deposits 331,806 233,993 Total deposits $ 7,333,486 $ 6,392,553 Total certificates of deposit at December 31, 2023 are scheduled to mature as follows: 2024 $ 1,559,553 2025 142,515 2026 1,593 2027 9,226 2028 2,002 Total certificates of deposit $ 1,714,889 The following table presents the amount of certificates of deposit with denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand, segregated by time remaining until maturity, as of December 31, 2023: Three months or less Over 3 months through Over 6 months through Over Total Certificates of deposit $ 5,673 $ 8,139 $ 132,912 $ 3,403 $ 150,127 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 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. There was no debt outstanding under the Company’s repurchase agreements at December 31, 2023. The aggregate debt outstanding under the Company’s repurchase agreements was $2.6 million at December 31, 2022. In addition, the Company has available borrowing capacity with the FRB and FHLB of Des Moines totaling $3.5 billion and $605.5 million, with pledged collateral totaling $6.4 million and $754.0 million, at December 31, 2023 and 2022, respectively. Long-term Debt The following table summarizes the Company’s long-term debt, as of the dates indicated: December 31, 2023 2022 Advances from PPPLF (1) : Aggregate debt outstanding (fixed interest rate of 0.35%) $ 6,398 $ 64,154 Pledged collateral $ 6,392 $ 66,971 Retail notes and certificates (2) : Aggregate debt outstanding $ 10,488 $ 55,425 Payable on Structured Program borrowings (3) : Aggregate debt outstanding $ 2,468 $ 8,085 Pledged collateral $ 3,930 $ 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 $0.5 million and $4.0 million and "Restricted cash” of $3.4 million and $5.7 million as of December 31, 2023 and 2022, respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities consist of the following: December 31, 2023 2022 Accounts payable and accrued expenses $ 54,619 $ 98,173 Operating lease liabilities 37,869 77,291 Payable to investors (1) 36,823 30,311 Other 93,490 86,842 Total other liabilities $ 222,801 $ 292,617 (1) Represents principal and interest on loans collected by the Company and pending disbursement to investors. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) represents other cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) were as follows: Year Ended December 31, 2023 Before Tax Tax Effect Net of Tax Change in net unrealized gain on securities available for sale $ 10,238 $ (2,926) $ 7,312 Other comprehensive income $ 10,238 $ (2,926) $ 7,312 Year Ended December 31, 2022 Before Tax Tax Effect Net of Tax Change in net unrealized loss on securities available for sale $ (61,326) $ 16,664 $ (44,662) Other comprehensive loss $ (61,326) $ 16,664 $ (44,662) Year Ended December 31, 2021 Before Tax Tax Effect Net of Tax Change in net unrealized gain on securities available for sale $ 5,562 $ — $ 5,562 Other comprehensive income $ 5,562 $ — $ 5,562 Accumulated other comprehensive income (loss) balances were as follows: Total Balance at December 31, 2021 $ 7,046 Net unrealized loss on securities available for sale (44,662) Balance at December 31, 2022 $ (37,616) Net unrealized gain on securities available for sale 7,312 Balance at December 31, 2023 $ (30,304) |
Employee Incentive Plans
Employee Incentive Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Incentive Plans | Employee Incentive Plans The Company’s equity incentive plans provide for granting awards, including RSUs, PBRSUs, cash awards and stock options to employees, officers and directors. Common Stock Reserved for Future Issuance Shares of common stock reserved for future issuance was as follows: December 31, 2023 2022 Available for future RSU, PBRSU and stock option grants 22,732,012 17,473,925 Unvested RSUs, PBRSUs and stock options outstanding 9,338,246 11,676,962 Available for ESPP 7,484,043 6,302,187 Total reserved for future issuance 39,554,301 35,453,074 Stock-based Compensation Stock-based compensation expense, included in “Compensation and benefits” expense on the Income Statement, was as follows for the periods presented: Year Ended December 31, 2023 2022 2021 RSUs and PBRSUs $ 61,619 $ 74,334 $ 70,935 Stock options — 46 599 Stock-based compensation expense, gross 61,619 74,380 71,534 Less: Capitalized stock-based compensation expense 9,230 8,018 4,383 Stock-based compensation expense, net $ 52,389 $ 66,362 $ 67,151 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 7,138,085 $ 7.57 Vested (5,575,341) $ 11.44 Forfeited/expired (3,235,539) $ 11.28 Unvested at December 31, 2023 6,999,831 $ 9.42 During the year ended December 31, 2023, the Company granted 7,138,085 RSUs with an aggregate fair value of $54.0 million. As of December 31, 2023, there was $59.4 million of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 1.8 years, subject to any forfeitures. Performance-based Restricted Stock Units 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 (221,818) $ 12.37 Unvested at December 31, 2023 1,469,813 $ 12.60 During the year ended December 31, 2023, the Company granted 807,499 PBRSUs with an aggregate fair value of $5.8 million. As of December 31, 2023, there was $5.9 million of unrecognized compensation cost related to unvested PBRSUs, which is expected to be recognized over a weighted-average period of approximately 1.4 years, subject to any forfeitures. Stock Options The following table summarizes the activities for the Company’s stock options: Number of Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) Outstanding at December 31, 2022 1,249,451 $ 37.11 Exercised (35,473) $ 5.30 Forfeited/Expired (345,376) $ 35.57 Outstanding at December 31, 2023 868,602 $ 39.02 1.2 $ 15 Exercisable at December 31, 2023 868,602 $ 39.02 1.2 $ 15 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company’s closing stock price of $8.74 as reported on the New York Stock Exchange on December 29, 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit (expense) consisted of the following: Year Ended December 31, 2023 2022 2021 Current: Federal $ (3,180) $ — $ — State 5,060 (20,812) (3,541) Total current tax benefit (expense) $ 1,880 $ (20,812) $ (3,541) Deferred: Federal $ (11,427) $ 121,520 $ 2,066 State (6,131) 35,940 1,611 Total deferred benefit (expense) $ (17,558) $ 157,460 $ 3,677 Income tax benefit (expense) $ (15,678) $ 136,648 $ 136 Income tax expense for the year ended December 31, 2023 was $15.7 million. The effective tax rate differs from the statutory rate due to the impact of state taxes, the favorable impact of recurring items such as tax credits, the unfavorable impact of the non-deductible portions of executive compensation and stock-based compensation, and the change in unrecognized tax benefits. Income tax benefit for the year ended December 31, 2022 was $136.6 million, primarily due to the release of a $175.6 million valuation allowance against the Company’s deferred tax assets, of which $143.5 million was primarily based on the Company’s reassessment of the future realizability of its deferred tax assets. Income tax benefit for the year ended December 31, 2021 was $136 thousand, primarily related to a tax benefit associated with the Acquisition, partially offset by income tax expense for state jurisdictions that limit net operating loss carryforward utilization. The table below presents a reconciliation of the income tax benefit (expense) at the statutory federal income tax rate to the income tax benefit (expense) at the effective income tax rate: Year Ended December 31, 2023 2022 2021 Statutory federal tax expense $ (11,470) $ (32,140) $ (3,873) State tax, net of federal tax benefit (903) 11,951 (1,524) Stock-based compensation tax benefit (expense) (4,392) 271 11,839 Research and development tax credits 4,600 10,907 4,354 Change in valuation allowance — 154,081 (7,867) Change in unrecognized tax benefit (1,380) (3,438) (2,177) Non-deductible expenses (2,351) (4,737) (742) Other 218 (247) 126 Income tax benefit (expense) $ (15,678) $ 136,648 $ 136 The significant components of the Company’s net deferred tax asset were as follows: December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 60,432 $ 64,288 Allowance for loan and lease losses 84,119 89,718 Stock-based compensation 7,399 10,121 Unrealized loss on AFS securities 12,484 17,214 Deferred compensation 6,574 12,690 Reserves and accruals 12,651 13,474 Operating lease liabilities 10,185 20,999 Goodwill 10,203 12,267 Tax credit carryforwards 27,924 26,913 Other 3,926 4,249 Gross deferred tax assets 235,897 271,933 Valuation allowance (46,108) (47,721) Total deferred tax assets $ 189,789 $ 224,212 Deferred tax liabilities: Internally developed software $ (9,934) $ (11,687) Servicing assets (2,171) (2,634) Operating lease assets (7,157) (17,353) Leases (13,121) (15,694) Other (5,995) (3,157) Total deferred tax liabilities $ (38,378) $ (50,525) Deferred tax assets, net $ 151,411 $ 173,687 In 2022, the Company evaluated both positive and negative evidence when assessing the recoverability of its net deferred tax assets. Several factors were considered, which primarily included the Company’s business model transition and resulting increase in profitability and the expectation of continued profitability. These factors resulted in the release of the majority of the Company’s valuation allowance against its deferred tax assets during 2022. As of December 31, 2023, the Company maintained a valuation allowance of $46.1 million solely related to certain state net operating loss carryforwards (NOLs) and state tax credit carryforwards. As of December 31, 2023, the Company had federal and state NOLs (prior to the application of statutory tax rates) of approximately $88.8 million and $534.5 million, respectively. Federal and state NOLs of approximately $88.8 million and $28.9 million, respectively, carry forward indefinitely while the remaining state NOLs primarily start expiring in 2030. The carryforwards, net of the valuation allowance for certain states, are expected to be fully utilized prior to expiration. Additionally, as of December 31, 2023, the Company had federal and state research and development credit carryforwards of $31.8 million and $24.9 million, respectively. The federal research credit carryforwards will expire beginning in 2036 and the state research credits may be carried forward indefinitely. A reconciliation of the beginning and ending balance of total unrecognized tax benefits was as follows: Year Ended December 31, 2023 2022 2021 Beginning balance $ 27,850 $ 22,512 $ 17,626 Gross increase for tax positions related to prior years (161) 2,488 1,272 Gross increase for tax positions related to the current year 2,373 2,850 3,614 Ending balance $ 30,062 $ 27,850 $ 22,512 As of December 31, 2023, $19.5 million of unrecognized tax benefits, if recognized, would impact the Company’s effective tax rate. The Company had approximately $0.4 million and $0.2 million accrued for the payment of interest and penalties related to unrecognized tax benefits as of December 31, 2023 and 2022, respectively. The Company does not expect any significant increases or decreases to its unrecognized benefits within the next twelve months. The Company files income tax returns in the United States and various state jurisdictions. As of December 31, 2023, the Company’s federal tax returns for 2019 and earlier, and state tax returns for 2018 and earlier were no longer subject to examination by the taxing authorities. However, tax periods closed in a prior period may be subject to audit and re-examination by tax authorities for which tax carryforwards are utilized in subsequent years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2023, 2022 and 2021, interest earned on Equipment Finance was $8.9 million, $10.2 million and $10.8 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. The components of Equipment Finance assets are as follows: December 31, 2023 2022 Lease receivables $ 92,546 $ 137,969 Unguaranteed residual asset values 28,913 39,262 Unearned income (11,072) (17,786) Deferred fees 605 874 Total $ 110,992 $ 160,319 Future minimum lease payments based on maturity of the Company’s lessor arrangements as of December 31, 2023 were as follows: 2024 $ 38,583 2025 27,289 2026 16,411 2027 7,845 2028 4,053 Thereafter 1,545 Total lease payments $ 95,726 Discount effect (3,180) Present value of future minimum lease payments $ 92,546 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 December 31, 2023, the lease agreements have remaining lease terms ranging from approximately two years to five years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of December 31, 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 December 31, 2023 December 31, 2022 Operating lease assets Other assets $ 26,611 $ 63,872 Operating lease liabilities Other liabilities $ 37,869 $ 77,291 Components of net lease costs were as follows: Year Ended December 31, Net Lease Costs Income Statement Classification 2023 2022 2021 Operating lease costs Occupancy $ (11,963) $ (15,189) $ (18,773) Sublease revenue Other non-interest income — 2,847 6,149 Net lease costs $ (11,963) $ (12,342) $ (12,624) Supplemental cash flow information related to the Company’s operating leases was as follows: Year Ended December 31, 2023 2022 2021 Non-cash operating activity: Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities (1) $ (29,745) $ (3,650) $ 12,914 (1) Amounts include noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases as of December 31, 2023 were as follows: Operating Lease 2024 $ 12,798 2025 13,129 2026 7,228 2027 4,265 2028 3,922 Thereafter 909 Total lease payments $ 42,251 Discount effect 4,382 Present value of future minimum lease payments $ 37,869 The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows: Lease Term and Discount Rate December 31, 2023 Weighted-average remaining lease term (in years) 3.72 Weighted-average discount rate 5.04 % |
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 years ended December 31, 2023, 2022 and 2021, interest earned on Equipment Finance was $8.9 million, $10.2 million and $10.8 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. The components of Equipment Finance assets are as follows: December 31, 2023 2022 Lease receivables $ 92,546 $ 137,969 Unguaranteed residual asset values 28,913 39,262 Unearned income (11,072) (17,786) Deferred fees 605 874 Total $ 110,992 $ 160,319 Future minimum lease payments based on maturity of the Company’s lessor arrangements as of December 31, 2023 were as follows: 2024 $ 38,583 2025 27,289 2026 16,411 2027 7,845 2028 4,053 Thereafter 1,545 Total lease payments $ 95,726 Discount effect (3,180) Present value of future minimum lease payments $ 92,546 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 December 31, 2023, the lease agreements have remaining lease terms ranging from approximately two years to five years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of December 31, 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 December 31, 2023 December 31, 2022 Operating lease assets Other assets $ 26,611 $ 63,872 Operating lease liabilities Other liabilities $ 37,869 $ 77,291 Components of net lease costs were as follows: Year Ended December 31, Net Lease Costs Income Statement Classification 2023 2022 2021 Operating lease costs Occupancy $ (11,963) $ (15,189) $ (18,773) Sublease revenue Other non-interest income — 2,847 6,149 Net lease costs $ (11,963) $ (12,342) $ (12,624) Supplemental cash flow information related to the Company’s operating leases was as follows: Year Ended December 31, 2023 2022 2021 Non-cash operating activity: Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities (1) $ (29,745) $ (3,650) $ 12,914 (1) Amounts include noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases as of December 31, 2023 were as follows: Operating Lease 2024 $ 12,798 2025 13,129 2026 7,228 2027 4,265 2028 3,922 Thereafter 909 Total lease payments $ 42,251 Discount effect 4,382 Present value of future minimum lease payments $ 37,869 The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows: Lease Term and Discount Rate December 31, 2023 Weighted-average remaining lease term (in years) 3.72 Weighted-average discount rate 5.04 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 19. 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 December 31, 2023 and 2022, the contractual amount of unfunded loan commitments was $78.1 million and $138.0 million, respectively. See “ Note 6. 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 and/or law enforcement 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 | 12 Months Ended |
Dec. 31, 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 (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 Basel III capital framework. In this regard, and unless otherwise directed by the FRB and the OCC, the Company and LC Bank made commitments (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%. On February 2, 2024, the Operating Agreement with the OCC expired and LC Bank and the Company are no longer subject to these ratio commitments. The following table summarizes the Company’s and LC Bank’s regulatory capital amounts (in millions) and ratios: December 31, 2023 December 31, 2022 Required Minimum plus Required CCB for Non-Leverage Ratios Amount Ratio Amount Ratio LendingClub Corporation: CET1 capital (1) $ 1,090.2 17.9 % $ 1,005.8 15.8 % 7.0 % Tier 1 capital $ 1,090.2 17.9 % $ 1,005.8 15.8 % 8.5 % Total capital $ 1,169.2 19.2 % $ 1,088.1 17.1 % 10.5 % Tier 1 leverage $ 1,090.2 12.9 % $ 1,005.8 14.1 % 4.0 % Risk-weighted assets $ 6,104.5 N/A $ 6,360.7 N/A N/A Quarterly adjusted average assets $ 8,476.1 N/A $ 7,119.0 N/A N/A LendingClub Bank: CET1 capital (1) $ 949.4 15.8 % $ 852.2 13.8 % 7.0 % Tier 1 capital $ 949.4 15.8 % $ 852.2 13.8 % 8.5 % Total capital $ 1,027.4 17.1 % $ 932.4 15.1 % 10.5 % Tier 1 leverage $ 949.4 11.4 % $ 852.2 12.5 % 4.0 % Risk-weighted assets $ 6,022.2 N/A $ 6,194.0 N/A N/A Quarterly adjusted average assets $ 8,337.4 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 December 31, 2023 and 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 December 31, 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. No dividends were declared by LC Bank in 2023 or 2022. 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. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 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. However, no individual borrower or marketplace investor accounted for 10% or more of total net revenue during the year ended December 31, 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 Corporation (Parent only) Intercompany Consolidated Total Year Ended December 31, Eleven Months Ended December 31, Year Ended December 31, Year Ended December 31, Eleven Months Ended December 31, Year Ended December 31, 2023 2022 2021 (1) 2023 2022 2021 2023 2022 2021 (1) 2023 2022 2021 Non-interest income: Marketplace revenue $ 206,381 $ 610,536 $ 462,821 $ 41,817 $ 48,231 $ 115,759 $ 43,286 $ 24,859 $ — $ 291,484 $ 683,626 $ 578,580 Other non-interest income 74,684 85,208 94,953 9,503 15,628 16,718 (72,890) (72,071) (84,452) 11,297 28,765 27,219 Total non-interest income 281,065 695,744 557,774 51,320 63,859 132,477 (29,604) (47,212) (84,452) 302,781 712,391 605,799 Interest income: Interest income 818,206 526,471 210,739 14,424 30,869 82,093 — — — 832,630 557,340 292,832 Interest expense (266,218) (60,954) (8,412) (4,574) (21,561) (71,589) — — — (270,792) (82,515) (80,001) Net interest income 551,988 465,517 202,327 9,850 9,308 10,504 — — — 561,838 474,825 212,831 Total net revenue 833,053 1,161,261 760,101 61,170 73,167 142,981 (29,604) (47,212) (84,452) 864,619 1,187,216 818,630 (Provision for) reversal of credit losses (243,565) (267,326) (142,182) — — 3,382 — — — (243,565) (267,326) (138,800) Non-interest expense (537,026) (724,304) (547,799) (59,015) (89,761) (198,039) 29,604 47,212 84,452 (566,437) (766,853) (661,386) Income (Loss) before income tax benefit (expense) 52,462 169,631 70,120 2,155 (16,594) (51,676) — — — 54,617 153,037 18,444 Income tax benefit (expense) (17,881) (42,354) 9,171 2,203 125,954 44,013 — 53,048 (53,048) (15,678) 136,648 136 Net income (loss) $ 34,581 $ 127,277 $ 79,291 $ 4,358 $ 109,360 $ (7,663) $ — $ 53,048 $ (53,048) $ 38,939 $ 289,685 $ 18,580 Capital expenditures $ 59,509 $ 69,481 $ 32,602 $ — $ — $ 1,811 $ — $ — $ — $ 59,509 $ 69,481 $ 34,413 Depreciation and amortization $ 30,216 $ 16,489 $ 4,569 $ 16,979 $ 27,342 $ 39,716 $ — $ — $ — $ 47,195 $ 43,831 $ 44,285 (1) Because the LendingClub Bank reportable segment was formed upon the Acquisition on February 1, 2021, the associated results are presented for the eleven month period ended December 31, 2021. LendingClub Bank LendingClub Corporation Intercompany Consolidated Total December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Assets Total cash and cash equivalents $ 1,230,206 $ 1,020,874 $ 110,273 $ 56,475 $ (87,975) $ (20,319) $ 1,252,504 $ 1,057,030 Restricted cash — — 46,628 75,409 (4,984) (7,955) 41,644 67,454 Securities available for sale at fair value 1,617,309 329,287 2,953 16,415 — — 1,620,262 345,702 Loans held for sale at fair value 407,773 110,400 — — — — 407,773 110,400 Loans and leases held for investment, net 4,539,915 4,705,302 — — — — 4,539,915 4,705,302 Loans held for investment at fair value 253,800 906,711 8,390 19,227 — — 262,190 925,938 Retail and certificate loans held for investment at fair value — — 10,488 55,425 — — 10,488 55,425 Property, equipment and software, net 144,439 102,274 17,078 34,199 — — 161,517 136,473 Investment in subsidiary — — 816,703 755,319 (816,703) (755,319) — — Goodwill 75,717 75,717 — — — — 75,717 75,717 Other assets 341,680 339,341 131,135 173,851 (17,362) (12,886) 455,453 500,306 Total assets 8,610,839 7,589,906 1,143,648 1,186,320 (927,024) (796,479) 8,827,463 7,979,747 Liabilities and Equity Total deposits 7,426,445 6,420,827 — — (92,959) (28,274) 7,333,486 6,392,553 Borrowings 6,398 64,154 2,468 10,704 — — 8,866 74,858 Retail notes and certificates — — 10,488 55,425 — — 10,488 55,425 Other liabilities 154,077 189,185 86,086 116,318 (17,362) (12,886) 222,801 292,617 Total liabilities 7,586,920 6,674,166 99,042 182,447 (110,321) (41,160) 7,575,641 6,815,453 Total equity 1,023,919 915,740 1,044,606 1,003,873 (816,703) (755,319) 1,251,822 1,164,294 Total liabilities and equity $ 8,610,839 $ 7,589,906 $ 1,143,648 $ 1,186,320 $ (927,024) $ (796,479) $ 8,827,463 $ 7,979,747 |
LendingClub Corporation _ Paren
LendingClub Corporation – Parent Company-Only Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
LendingClub Corporation – Parent Company-Only Financial Statements | LendingClub Corporation – Parent Company-Only Financial Statements The following tables present standalone condensed financial statements for LendingClub Corporation (Parent Company). These statements are provided in accordance with SEC rules, which require such disclosures when the restricted net assets of a consolidated subsidiary exceed 25% of consolidated net assets, and should be read in conjunction with the Consolidated Financial Statements and the accompanying Notes to the Consolidated Financial Statements. For purposes of these condensed financial statements, the Parent’s wholly-owned subsidiary is presented in accordance with the equity method of accounting. Statements of Income Year Ended December 31, 2023 2022 2021 Non-interest income: Marketplace revenue $ 41,817 $ 48,231 $ 115,759 Other non-interest income 9,503 15,628 16,718 Total non-interest income 51,320 63,859 132,477 Interest income: Interest on loans held for sale — 1,390 11,025 Interest on loans held for investment at fair value 2,589 2,875 4,436 Interest on retail and certificate loans held for investment at fair value 4,222 18,135 57,684 Interest on securities available for sale 6,802 7,608 8,922 Other interest income 811 861 26 Total interest income 14,424 30,869 82,093 Interest expense: Interest on retail notes and certificates at fair value 4,222 18,135 57,684 Other interest expense 352 3,426 13,905 Total interest expense 4,574 21,561 71,589 Net interest income 9,850 9,308 10,504 Total net revenue 61,170 73,167 142,981 Reversal of credit losses — — (3,382) Non-interest expense: Compensation and benefits 6,520 7,770 31,010 Marketing — 188 5,460 Equipment and software 246 194 2,459 Depreciation and amortization 16,979 27,342 39,716 Professional services 1,210 523 14,666 Occupancy 9,552 13,346 17,751 Other non-interest expense 24,508 40,398 86,977 Total non-interest expense 59,015 89,761 198,039 Income (Loss) before income tax benefit 2,155 (16,594) (51,676) Income tax benefit 2,203 125,954 44,013 Income (Loss) before undistributed earnings of subsidiary 4,358 109,360 (7,663) Equity in undistributed earnings of subsidiary 34,581 127,277 79,291 Net income $ 38,939 $ 236,637 $ 71,628 In accordance with federal laws and regulations, dividends paid by LC Bank to the Company are subject to certain restrictions. See “ Note 21. Regulatory Requirements ” for more information. Statements of Comprehensive Income Year Ended December 31, 2023 2022 2021 Net income $ 38,939 $ 236,637 $ 71,628 Other comprehensive income (loss), net of tax: Net unrealized gain (loss) on securities available for sale 6,706 (1,556) 9,153 Equity in other comprehensive loss of subsidiary (1,282) (43,528) (2,619) Other comprehensive income (loss), net of tax 5,424 (45,084) 6,534 Total comprehensive income $ 44,363 $ 191,553 $ 78,162 Balance Sheets December 31, 2023 2022 Assets Cash and due from banks $ 96,384 $ 34,119 Interest-bearing deposits in banks 13,889 22,356 Total cash and cash equivalents 110,273 56,475 Restricted cash 46,628 75,409 Securities available for sale at fair value ($264 and $8,322 at amortized cost, respectively) 2,953 16,415 Loans held for investment at fair value 8,390 19,227 Retail and certificate loans held for investment at fair value 10,488 55,425 Property, equipment and software, net 17,078 34,199 Investment in subsidiary 937,987 923,618 Other assets 126,899 165,973 Total assets $ 1,260,696 $ 1,346,741 Liabilities and Equity Borrowings $ 2,468 $ 10,704 Retail notes and certificates at fair value 10,488 55,425 Other liabilities 86,086 116,318 Total liabilities 99,042 182,447 Equity Common stock, $0.01 par value; 180,000,000 shares authorized; 110,410,602 and 106,546,995 shares issued and outstanding, respectively 1,104 1,065 Additional paid-in capital 1,669,828 1,628,590 Accumulated deficit (468,097) (427,745) Accumulated other comprehensive loss (41,181) (37,616) Total equity 1,161,654 1,164,294 Total liabilities and equity $ 1,260,696 $ 1,346,741 Statements of Cash Flows Year Ended December 31, 2023 2022 2021 Cash Flows from Operating Activities: Parent company net income $ 38,939 $ 236,637 $ 71,628 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (34,581) (127,277) (79,291) Income tax benefit (2,203) (125,954) (44,013) Net fair value adjustments (2,903) (5,929) (5,936) Reversal of credit losses — — (3,382) Change in fair value of loan servicing assets 50,281 33,840 37,138 Stock-based compensation, net 5,253 6,310 14,506 Depreciation and amortization 16,979 27,342 39,716 Gain on sales of loans — — (3,372) Other, net 274 16 9,326 Net change to loans held for sale 5,953 31,658 90,609 Net change in operating assets and liabilities: Other assets (30,602) 42,219 (29,556) Other liabilities (30,741) (38,258) (95,737) Net cash provided by operating activities 16,649 80,604 1,636 Cash Flows from Investing Activities: Acquisition of company — — (145,344) Payments for investments in and advances to subsidiary — (50,000) (250,001) Purchase of servicing asset investment (50,576) (59,880) — Proceeds from servicing asset investment 72,343 24,564 — Net change in loans and leases 5,066 4,443 1,360 Net decrease in retail and certificate loans 47,545 171,853 437,870 Proceeds from maturities and paydowns of securities available for sale 7,861 46,548 103,258 Purchases of property, equipment and software, net — — (1,811) Other investing activities 200 2,370 8,804 Net cash provided by investing activities 82,439 139,898 154,136 Cash Flows from Financing Activities: Principal payments on retail notes and certificates (47,545) (182,260) (438,032) Principal payments on Structured Program borrowings (4,073) (21,423) (90,187) Principal payments on short-term borrowings (2,619) (25,415) (81,935) Principal payments on long term debt — (15,300) — Other financing activities (19,834) (9,028) (9,295) Net cash used for financing activities (74,071) (253,426) (619,449) Net Change in Cash, Cash Equivalents and Restricted Cash 25,017 (32,924) (463,677) Cash, Cash Equivalents and Restricted Cash, Beginning of Period 131,884 164,808 628,485 Cash, Cash Equivalents and Restricted Cash, End of Period $ 156,901 $ 131,884 $ 164,808 (1) Prior period amounts have been reclassified to conform to the current period presentation. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Pay vs Performance Disclosure | ||||
Net income | [1] | $ 38,939 | $ 289,685 | $ 18,580 |
[1]See “ Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and, in the opinion of management, contain all adjustments, 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. Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclassified to conform to the current period presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents have original maturities of three months or less and include cash on hand, cash items in transit, and amounts due from or held with other depository institutions, primarily with the Board of Governors of the Federal Reserve System (FRB). |
Restricted Cash | Restricted Cash Cash items held with other depository institutions in which the ability to withdraw funds is restricted by contractual provisions is classified as restricted cash. Such amounts include: (i) cash pledged as security related to LendingClub’s issuing bank activities and transactions with certain investors; and (ii) cash received from borrowers on loans owned and not yet distributed to investors. |
Securities | Securities Debt securities purchased and asset-backed securities retained from the sale of loans are classified as available for sale (AFS) securities. AFS securities represent investment securities with readily determinable fair values that the Company: (i) does not hold for trading purposes and (ii) does not have the positive intent and ability to hold to maturity. AFS securities are measured at fair value, with unrealized gains and losses reported in “Accumulated other comprehensive income (loss)” within the equity section of the Balance Sheet. The amount reported in “Accumulated other comprehensive income (loss)” is net of any valuation allowance and applicable income taxes. Management evaluates whether debt AFS securities with unrealized losses are impaired on a quarterly basis. For any security that has declined in fair value below its amortized cost basis, the Company recognizes an impairment loss in current period earnings if management has the intent to sell the security or if it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. The assessment of impairment also considers whether the decline in fair value below the security’s amortized cost basis is attributable to credit-related factors. If credit-related factors exist, credit-related impairment has occurred regardless of the Company’s intent to hold the security until it recovers. The credit-related portion of impairment is recognized as provision for credit loss expense in earnings with a corresponding valuation allowance for AFS securities on the Balance Sheet, to the extent the allowance does not reduce the value of the security below its fair value. Equity securities that do not have readily determinable fair values are generally recorded at cost adjusted for impairment, if any. These securities include FRB stock and Federal Home Loan Bank (FHLB) stock and are reported as “Nonmarketable equity investments” in “Other assets” on the Balance Sheet. |
Loans and Leases | Loans and Leases The Company initially classifies loans and leases as either held for sale (HFS) or held for investment (HFI) based on management’s assessment of its intent and ability to hold the loans for the foreseeable future or until maturity. Management’s intent and ability with respect to certain loans may change from time to time. In order to reclassify loans to HFS, management must have the intent to sell the loans and the ability to reasonably identify the specific loans to be sold. HFI loans at amortized cost HFI loans, with the exception of HFI loans accounted for under the fair value option, are measured at historical cost and reported at their outstanding principal balances net of any charge-offs, unamortized deferred fees and costs on originated loans, and for purchased loans, net of any unamortized premiums and discounts. Leases are recorded at the discounted amounts of lease payments receivable plus the estimated residual value of the leased asset, net of unearned income and unamortized deferred fees and costs. Lease payments receivable reflect contractual lease payments adjusted for renewal or termination options that the Company believes the customer is reasonably certain to exercise. Unearned income, deferred fees and costs, and discounts and premiums are accreted and amortized to interest income over the contractual life of the loan using its effective interest rate. In certain circumstances, the Company may transfer loans from HFI to HFS. At the time of transfer, these loans are valued at the lower of amortized cost or fair value. HFI loans at fair value HFI loans are measured at fair value if the Company elects the fair value option. The Company may elect the fair value option for certain HFI loans, which could include loans purchased by the Company. Interest income is recorded under the effective interest method which considers any purchase premium or discounts. In addition, purchase related discounts absorb credit losses. Retail and certificate loans and the related notes and certificates are measured at fair value. Due to the payment dependent feature of the notes and certificates, changes in the fair value of the notes and certificates are offset by changes in the fair values of related loans, resulting in no net effect on the Company’s earnings. HFS loans at fair value Marketplace revenue |
Accrued Interest Income and Non-Accrual Policy | Accrued Interest Income and Non-Accrual Policy Interest income is accrued as earned. The accrual of interest income is discontinued, and the loan or lease is placed on nonaccrual status at 90 days past due or when reasonable doubt exists as to timely collection. Past due status is based on the contractual terms of the loan or lease. When a loan or lease is placed on nonaccrual status, all income previously accrued but not collected is reversed against the current period’s interest income. The Company has a nonaccrual policy which results in the timely reversal of past-due accrued interest, and it does not record an allowance for credit losses (ACL) on accrued interest receivable. However, we record an ACL on accrued interest receivable for past due unsecured personal loans that are less than 90 days past due. Interest collections on nonaccrual loans and leases for which the ultimate collectability of principal is uncertain are applied as principal reductions; otherwise, such collections are credited to income when received. Nonaccrual loans and leases are returned to accrual status when there no longer exists concern over collectability, the borrower has demonstrated, over time, both the intent and ability to repay and the loan or lease has been brought current and future payments are reasonably assured. For loans held for investment measured at fair value, we record interest income over the term of the underlying loans using the effective interest method which considers any purchase discount or premiums. |
Allowance for Credit Losses | Allowance for Credit Losses The ACL represents management’s estimate of expected credit losses in the loan and lease portfolio, excluding loans accounted for under the fair value option. The ACL is measured based on a lifetime expected loss model, which does not require a loss event to occur before a credit loss is recognized. Under the lifetime expected credit loss model, the Company estimates the allowance based on relevant available information related to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. The ACL is estimated using a discounted cash flow (DCF) approach where effective interest rates are used to calculate the net present value of expected cash flows. The effective interest rate is calculated based on the periodic interest income received from the loan’s contractual cash flows and the net investment in the loan, which includes deferred origination fees and costs, to provide a constant rate of return over the term. The Company evaluates its estimate of expected credit losses each reporting period and records any additions or reductions to the allowance on the Income Statement as “Provision for credit losses.” Amounts determined to be uncollectible are charged-off to the allowance. Estimates of expected credit losses include expected recoveries of amounts previously charged-off and amounts expected to be charged-off. If amounts previously charged off are subsequently expected to be collected, the Company may recognize a negative allowance, which is limited to the amount that was previously charged off. Under applicable accounting guidance, for reporting purposes, the loan and lease portfolio is categorized by portfolio segment. A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine the ACL. The Company’s two portfolio segments are consumer and commercial. The Company further disaggregates its portfolio segments into various classes of financing receivables based on their underlying risk characteristics. The classes within the consumer portfolio segment are unsecured consumer, secured consumer and residential mortgages. The classes within the commercial portfolio segment are commercial and industrial, commercial real estate, and equipment finance. The ACL is measured on a collective basis when loans share similar risk characteristics. Relevant risk characteristics for the consumer portfolio include product type, risk rating, loan term, and monthly vintage. Relevant risk characteristics for the commercial portfolio include product type, risk rating and PCD status. Loans measured on a collective basis generally have an ACL comprised of a quantitative, or modeled, component that is supplemented by a framework of qualitative factors, as discussed below. The Company will continue to monitor its loan pools on an ongoing basis and adjust accordingly as the risk characteristics of the financial assets may change over time. If a given financial asset does not share similar risk characteristics with other financial assets, the Company shall measure expected credit losses on an individual, rather than on a collective basis. Loans evaluated on an individual basis generally have an ACL that is measured in reference to any collateral securing the loan and/or expected cash flows which are specific to the borrower. Allowance Calculation Methodology The Company generally estimates expected credit losses over the contractual term of its loans. The contractual term is adjusted for estimated prepayments when appropriate. The quantitative, or modeled, component of the ACL is primarily based on statistical models that use known or estimated data as of the balance sheet date and forecasted data over the reasonable and supportable period. Known and estimated data include current probability and timing of default, loss rate and recovery exposure at default, timing and amount of estimated prepayments, timing and amount of expected draws (for unfunded lending commitments), and relevant risk characteristics. Certain of the Company’s commercial portfolios have limited internal historical loss data and use external credit loss information, including historical charge-off and balance data for peer banking institutions. The Company obtains historical and forecast macroeconomic information to inform its view of the long-term condition of the economy. Forward-looking macroeconomic factors considered in the Company’s consumer model include, unemployment rate, unemployment insurance claims, gross domestic product (GDP), housing prices, and retail sales. Forward-looking macroeconomic factors are incorporated into the Company’s commercial model for a two-year reasonable and supportable economic forecast period followed by a one-year reversion period during which expected credit losses are expected to revert back on a straight-line basis to historical losses unadjusted for economic conditions. The reasonable and supportable economic forecast period and reversion methodology are accounting estimates which may change in future periods as a result of changes to the current macroeconomic environment. The quantitative, or modeled, portion of ACL is estimated using a DCF approach. The Company’s statistical models produce expected cash flows, which are then discounted at the effective interest rate to derive net present value. The effective interest rate is calculated based on the periodic interest income received from the loan’s contractual cash flows and the net investment in the loan, which includes deferred origination fees and costs, to provide a constant rate of return over the contractual loan term. This net present value is then compared to the amortized cost basis to derive the initial expected credit losses. Under the DCF approach, the provision for credit losses includes credit loss expense in subsequent periods relating to the discounting effect due to the passage of time after the initial recognition of ACL on originated HFI loans at amortized cost. The Company also considers the need for qualitative adjustments to the modeled estimate of expected credit losses. For this purpose, the Company established a qualitative factor framework to periodically assess qualitative adjustments to address certain identified elements that are not directly captured by the statistically modeled expected credit loss. The Company also obtains forecast macroeconomic information to inform its view of the long-term condition of the economy. These factors may include the impact of the non-modeled macroeconomic outlook, forecast unemployment rate and insurance claims, risk rating downgrades, changes in credit policies, problem loan trends, identification of new risks not incorporated into the modeling framework, credit concentrations, changes in underwriting and other external factors. Zero Credit Loss Expectation Exception The Company has a zero loss expectation when the loans and securities available for sale, or portions thereof, are issued or guaranteed by certain U.S. government entities or agencies, as those entities or agencies have a long history of no defaults and the highest credit ratings issued by rating agencies. Loans held for investment and securities available for sale, or portions thereof, which meet this criterion do not have an ACL. Reserve for Unfunded Lending Commitments The ACL includes an estimate for expected credit losses on off-balance sheet commitments to extend credit and unused lines of credit. The Company estimates these expected credit losses for the unfunded portion of the commitments that are not unconditionally cancellable depending on the likelihood that funding will occur. The reserve for unfunded lending commitments is reported in “Other liabilities” on the Balance Sheet. Individually Assessed Loans Loans that do not share similar risk characteristics with other financial assets, including collateral-dependent loans, are individually assessed for purposes of measuring expected credit losses using the DCF approach. For loans that are determined to be collateral dependent, the ACL is determined based on the fair value of the collateral. Loans are considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially satisfied through sale or operation of the collateral. For such loans, the ACL is calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable. Purchased Credit Deteriorated Assets PCD assets are acquired financial assets (or groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment. The Company considers indicators such as loan rating, FICO score, days past due status, nonaccrual status, charge-off status, bankruptcy, modifications or risk rating to determine whether an acquired asset meets the definition of PCD. PCD assets are recorded on the acquisition date at their purchase price plus any related initial ACL, which results in a “gross-up” of the asset’s initial amortized cost basis. Recognition of the initial ACL upon the acquisition of PCD assets does not impact net income. Changes in estimates of expected credit losses after acquisition are recognized through the provision for credit losses. Acquired non-PCD assets are accounted for in a manner similar to originated financial assets, whereby any initial ACL is recorded through the “Provision for credit losses” on the Income Statement. Charge-Offs Charge-offs are recorded when the Company determines that a loan balance is uncollectible or a loss-confirming event has occurred. Loss confirming events usually involve the receipt of specific adverse information about the borrower and may include borrower delinquency status, bankruptcy, foreclosure, or receipt of an asset valuation indicating a shortfall between the value of the collateral and the book value of the loan when that collateral asset is the sole source of repayment. A full or partial charge-off reduces the amortized cost basis of the loan and the related ACL. Unsecured personal loans are charged-off when a borrower is (i) contractually 120 days past due or (ii) two payments past due and has filed for bankruptcy or is deceased. |
Servicing Assets | Servicing Assets Servicing assets are capitalized as separate assets when loans are sold and servicing is retained. The Company records servicing assets at their estimated fair values. Servicing asset fair value is based on the excess of the contractual servicing fee over an estimated market servicing rate. When servicing assets are recognized from the sale of loans originated by the Company, the fair value of the servicing asset is included as a component of the gain or loss on the loan sale and reported within “Marketplace revenue” on the Income Statement. Subsequent changes in fair value are reported within “Servicing fees” in “Marketplace revenue” during the period in which the changes occur. Servicing assets are reported in “Other assets” on the Balance Sheet. |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between market participants at the measurement date. Fair value is based on an exit price notion that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Certain of the Company’s assets and liabilities are recorded at fair value and measured on either a recurring or nonrecurring basis. Assets and liabilities that are recorded at fair value on a recurring basis require a fair value measurement at each reporting period. The fair value hierarchy includes a three-level hierarchy that assigns the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. Level 1 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. Level 3 — Unobservable inputs. Unobservable inputs require greater judgment in measuring fair value. In instances where there is limited or no observable market data, fair value measurements for assets and liabilities are based primarily upon the Company’s own estimates, and the measurements reflect information and assumptions that management believes a market participant would use in pricing the asset or liability. |
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” 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. |
Property, Equipment and Software, Net | Property, Equipment and Software, net Property, equipment and software are carried at cost less accumulated depreciation and amortization. The Company uses the straight-line method of depreciation and amortization. Estimated useful lives range from three years to five years for furniture and fixtures, computer equipment, and software. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. Internally developed software is capitalized when preliminary development efforts are successfully completed and it is probable that the project will be completed, and the software will be used as intended. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts, and costs incurred for upgrades and enhancements to add functionality of the software. Other costs are expensed as incurred. The Company evaluates impairments of its property, equipment and software whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the asset is not recoverable, measurement of an impairment loss is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is recorded when the purchase price of an acquired business exceeds the fair value of the net assets acquired. Goodwill is assigned to the Company’s reporting units at the acquisition date according to the expected economic benefits that the acquired business will provide to the reporting unit. A reporting unit is a business operating segment or a component of a business operating segment. The Company identifies its reporting units based on how the operating segments and reporting units are managed. Accordingly, the Company allocated goodwill to the LC Bank operating segment. The goodwill of each reporting unit is tested for impairment annually or more frequently in certain circumstances. The Company’s annual impairment testing is performed in the fourth quarter of each calendar year. Impairment exists when the carrying value of goodwill exceeds its estimated fair value. Adverse changes in impairment indicators such as lower than forecast financial performance, increased competition, increased regulatory oversight, or unplanned changes in operations could result in impairment. The Company can elect to either qualitatively assess goodwill for impairment, or bypass the qualitative test and proceed directly to a quantitative test. If the Company performs a qualitative assessment of goodwill to test for impairment and concludes it is more likely than not that the estimated fair value of a reporting unit is greater than its carrying value, a quantitative test is not required. However, if we determine it is more likely than not that a reporting unit’s fair value is less than its carrying amount, a quantitative assessment is performed to determine if goodwill impairment exists. Under the quantitative impairment assessment, the fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. Other intangible assets with determinable lives are recorded at their fair value upon completion of a business acquisition or certain other transactions, and generally represent the value of customer contracts or relationships. Such assets are amortized over their useful lives in a manner that best reflects their economic benefit, which may include straight-line or accelerated methods of amortization. Other intangible assets are reviewed for impairment quarterly and when events or changes in circumstances indicate that their carrying amount may not be recoverable. The Company does not have indefinite-lived intangible assets other than goodwill. Intangible assets are reported in “Other assets” on the Balance Sheet. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities in “Other liabilities” on the Balance Sheet. Associated legal expense is recorded in “Other non-interest expense” on the Income Statement. Such liabilities and associated expenses are recorded when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company will also disclose a range of exposure to incremental loss when such amounts can be estimated and are reasonably possible to occur in future periods. In estimating the Company’s exposure to loss contingencies, if an amount within the estimated range of loss is the best estimate, that amount will be accrued. However, if there is no amount within the estimated range of loss that is the best estimate, the Company will accrue the minimum amount within the range, and disclose the amount up to the high end of the range as an exposure to incremental loss, if such amount is considered reasonably possible. Such estimates are based on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability and records an adjustment to its estimate in the period in which the adjustment is probable and an amount or range can be reasonably estimated. The determination of an expected contingent liability and associated litigation expense requires the Company to make assumptions related to the outcome of these matters. Due to the inherent uncertainties of loss contingencies, the Company’s estimates may be different than the actual outcomes. Legal fees, including legal fees associated with loss contingencies, are recognized as incurred and included in “Professional services” expense on the Income Statement. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation includes expense primarily associated with restricted stock units ( RSUs) and performance-based restricted stock units (PBRSUs), as well as expense associated with stock issued related to acquisitions. Stock-based compensation expense is based on the grant date fair value of the award. The cost is generally recognized over the vesting period on a straight-line basis. Forfeitures are recognized as incurred. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers the available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized. If the Company determines that it is able to realize its deferred tax assets in the future in excess of the net recorded amount, the Company decreases the deferred tax asset valuation allowance, which reduces the provision for income taxes. Uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company recognizes interest and penalties, if any, related to uncertain tax positions in “Income tax benefit (expense)” on the Income Statement. |
Earnings Per Share | Earnings Per Share Basic earnings per share (Basic EPS) attributable to common stockholders is computed by dividing net income attributable to LendingClub by the weighted-average number of common shares outstanding during the period. Diluted earnings per share (Diluted EPS) is computed by dividing net income attributable to LendingClub by the weighted-average number of common shares outstanding during the period, adjusted for the effects of dilutive issuances of shares of common stock, which predominantly include incremental shares issued for outstanding RSUs, PBRSUs, and stock options. PBRSUs are included in dilutive shares to the extent the pre-established performance targets have been or are estimated to be satisfied as of the reporting date. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding RSUs, PBRSUs, and stock options are excluded from the computation of Diluted EPS in periods in which the effect would be antidilutive. For periods with more than one class of common shares, the Company computes Basic and Diluted EPS using the two-class method, which is an allocation of net income among the holders of each class of common shares. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities A variable interest entity (VIE) is a legal entity that has either a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. The Company’s variable interest arises from contractual, ownership or other monetary interests in the entity, which change with fluctuations in the fair value of the entity’s net assets. A VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance, and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates a VIE when it is deemed to be the primary beneficiary. The Company assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. |
Transfers of Financial Assets | Transfers of Financial Assets The Company accounts for transfers of financial assets as sales when it has surrendered control over the transferred assets. Control is generally considered to have been surrendered when the transferred assets have been legally isolated from the Company, the transferee has the right to pledge or exchange the assets without any significant constraints, and the Company has not entered into a repurchase agreement, does not hold unconditional call options and has not written put options on the transferred assets. In assessing whether control has been surrendered, the Company considers whether the transferee would be a consolidated affiliate and the impact of all arrangements or agreements made contemporaneously with, or in contemplation of the transfer, even if they were not entered into at the time of transfer. The Company measures gain or loss on sale of financial assets as the net proceeds received on the sale less the carrying amount of the loans sold. The net proceeds of the sale represent the fair value of any assets obtained or liabilities incurred as part of the transaction, including, but not limited to servicing assets, retained securities, and recourse obligations. Transfers of financial assets that do not qualify for sale accounting would be reported as secured borrowings. Accordingly, the related assets would remain on the Company’s Balance Sheet and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with related interest expense recognized over the life of the related assets. |
Adoption of New Accounting Standards and New Accounting Standards Net Yet Adopted | Adoption of New Accounting Standards The Company adopted the following new accounting standards during the year ended December 31, 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. New Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures , which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The new standard is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The amendments of this standard should be applied retrospectively, with early adoption permitted. The Company is evaluating the impact of this ASU but does not expect it to be material. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures , which improves income tax disclosure requirements, primarily through enhanced disclosures surrounding rate reconciliation and income taxes paid. The new standard is effective for annual periods beginning after December 15, 2024. The amendments of this standard should be applied prospectively, with retrospective application permitted. Early adoption is also permitted. The Company is evaluating the impact of this ASU but does not expect it to be material. |
Revenue from Contracts with Customers | Marketplace revenue consists of (i) origination fees, (ii) servicing fees, (iii) gain 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 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: |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Consideration Paid for Acquisition | On February 1, 2021, the Company completed the Acquisition. Upon closing, LendingClub acquired all outstanding voting equity interests of Radius in exchange for total consideration as follows: Cash paid $ 140,256 Fair value of common stock issued (1) 40,808 Consideration related to share-based payments (2) 5,742 Total consideration paid $ 186,806 (1) Calculated using the closing stock price of $10.85 on January 29, 2021, the most recent trading day preceding the Acquisition, multiplied by 3,761,114 shares issued pursuant to the Plan of Merger. (2) In connection with the Acquisition, LendingClub agreed to convert equity awards held by Radius employees into cash and LendingClub awards pursuant to the Plan of Merger. |
Schedule of Allocation of Consideration Paid | The following table presents an allocation of the total consideration paid to the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed: Assets acquired: Cash and due from banks $ 18,184 Interest-bearing deposits in banks 650,052 Total cash and cash equivalents 668,236 Securities available for sale at fair value 259,037 Loans and leases held for investment 1,589,054 Allowance for loan and lease losses (12,440) Loans and leases held for investment, net 1,576,614 Property, equipment and software 1,926 Goodwill 75,717 Other assets 86,482 Total assets 2,668,012 Liabilities assumed: Non-interest bearing deposits 146,187 Interest-bearing deposits 1,862,272 Total deposits 2,008,459 Short-term borrowings 9,870 Advances from PPPLF 420,962 Other long-term debt 18,630 Other liabilities 23,285 Total liabilities 2,481,206 Total consideration paid $ 186,806 |
Schedule of Pro Forma Financial Information | The table below presents certain unaudited pro forma financial information for illustrative purposes only, for the year ended December 31, 2021, as if the Acquisition took place on the first day of the preceding year. The pro forma information combines the historical results of Radius with the Company’s, adjusting for the estimated impact of certain fair value adjustments for the respective periods. The pro forma information does not reflect changes to the provision for credit losses resulting from recording loan assets as fair value, cost savings, or business synergies. As a result, actual amounts would have differed from the unaudited pro forma information presented and the differences could be significant. Year Ended December 31, 2021 Total net revenue $ 825,701 Net income $ 11,644 |
Marketplace Revenue (Tables)
Marketplace Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Source | The following table presents components of marketplace revenue for the periods presented: Year Ended December 31, 2023 2022 2021 Origination fees $ 279,146 $ 499,179 $ 416,839 Servicing fees 98,613 80,609 87,639 Gain on sales of loans 47,839 95,335 70,116 Net fair value adjustments (134,114) 8,503 3,986 Total marketplace revenue $ 291,484 $ 683,626 $ 578,580 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) per Share | The following table details the computation of the Company’s Basic and Diluted EPS of common stock and Series A Preferred Stock: Year Ended December 31, 2023 2022 2021 Common Stock Common Stock Common Stock Preferred Stock (1) Basic EPS: Net income attributable to stockholders $ 38,939 $ 289,685 $ 18,456 $ 124 Weighted-average common shares – Basic 108,466,179 103,547,305 97,486,754 653,118 Basic EPS $ 0.36 $ 2.80 $ 0.19 $ 0.19 Diluted EPS: Net income attributable to stockholders $ 38,939 $ 289,685 $ 18,580 $ — Weighted-average common shares – Diluted 108,468,857 104,001,288 102,147,353 — Diluted EPS $ 0.36 $ 2.79 $ 0.18 $ 0.00 (1) Presented on an as-converted basis. |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 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 AFS securities were as follows: December 31, 2023 Amortized Gross Gross Fair Senior asset-backed securities related to Structured Program transactions $ 1,165,513 $ 10,932 $ (42) $ 1,176,403 U.S. agency residential mortgage-backed securities 261,885 208 (37,497) 224,596 U.S. agency securities 93,452 — (13,348) 80,104 Other asset-backed securities related to Structured Program transactions (1) 70,662 2,731 — 73,393 Mortgage-backed securities 42,511 — (5,435) 37,076 Other asset-backed securities 26,710 25 (634) 26,101 Municipal securities 3,257 — (668) 2,589 Total securities available for sale (2) $ 1,663,990 $ 13,896 $ (57,624) $ 1,620,262 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 December 31, 2023, $70.1 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 December 31, 2023 and 2022, includes $359.5 million and $319.0 million, respectively, of securities pledged as collateral at fair value. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | A summary of AFS securities with unrealized losses for which a credit valuation allowance has not been recorded, aggregated by period of continuous unrealized loss, is as follows: Less than 12 months Total December 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Senior asset-backed securities related to Structured Program transactions $ 38,359 $ (42) $ — $ — $ 38,359 $ (42) U.S. agency residential mortgage-backed securities 6,497 (149) 201,426 (37,348) 207,923 (37,497) U.S. agency securities — — 80,104 (13,348) 80,104 (13,348) Mortgage-backed securities 13,973 (740) 23,103 (4,695) 37,076 (5,435) Other asset-backed securities 12,911 (50) 8,538 (584) 21,449 (634) Municipal securities — — 2,589 (668) 2,589 (668) Total securities with unrealized losses $ 71,740 $ (981) $ 315,760 $ (56,643) $ 387,500 $ (57,624) 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) |
Allowance for Credit Losses for Securities Available for Sale | The following table presents the activity in the credit valuation allowance for AFS securities, by major security type, during 2021: Credit Valuation Allowance Asset-backed securities related to Structured Program transactions Beginning balance as of December 31, 2020 $ (18,736) Reversal of credit loss expense 3,382 Reversal of allowance arising from PCD financial assets 15,354 Ending balance as of December 31, 2021 $ — |
Available-for-sale Securities by Contractual Maturity | The contractual maturities of AFS securities were as follows: December 31, 2023 Amortized Cost Fair Value Weighted- average Yield (1) Due after 1 year through 5 years: Senior asset-backed securities related to Structured Program transactions $ 1,165,513 $ 1,176,403 Other asset-backed securities related to Structured Program transactions 70,662 73,393 U.S. agency securities 9,000 8,746 Mortgage-backed securities 1,760 1,596 Other asset-backed securities 421 423 Municipal securities 154 139 U.S. agency residential mortgage-backed securities 3 3 Total due after 1 year through 5 years 1,247,513 1,260,703 7.57 % Due after 5 years through 10 years: U.S. agency securities 18,848 17,545 Other asset-backed securities 14,873 14,842 U.S. agency residential mortgage-backed securities 4,869 4,623 Mortgage-backed securities 2,024 1,713 Municipal securities 466 410 Total due after 5 years through 10 years 41,080 39,133 2.36 % Due after 10 years: U.S. agency residential mortgage-backed securities 257,013 219,970 U.S. agency securities 65,604 53,813 Mortgage-backed securities 38,727 33,767 Other asset-backed securities 11,416 10,836 Municipal securities 2,637 2,040 Total due after 10 years 375,397 320,426 2.91 % Total securities available for sale $ 1,663,990 $ 1,620,262 5.10 % (1) The weighted-average yield is computed using the average quarter end amortized cost during the year ended December 31, 2023. |
Schedule of Proceeds and Realized Gain (Loss) | Proceeds and gross realized gains and losses from AFS securities during 2021 were as follows: Year Ended December 31, 2021 Proceeds $ 106,192 Gross realized gains $ 708 Gross realized losses $ (952) |
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) | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Notes and Certificates | The following table presents the components of each portfolio segment by class of financing receivable: December 31, 2023 December 31, 2022 Unsecured personal $ 3,726,830 $ 3,866,373 Residential mortgages 183,050 199,601 Secured consumer 250,039 194,634 Total consumer loans held for investment 4,159,919 4,260,608 Equipment finance (1) 110,992 160,319 Commercial real estate 380,322 373,501 Commercial and industrial (2) 199,069 238,726 Total commercial loans and leases held for investment 690,383 772,546 Total loans and leases held for investment 4,850,302 5,033,154 Allowance for loan and lease losses (3) (310,387) (327,852) Loans and leases held for investment, net (4) $ 4,539,915 $ 4,705,302 (1) Comprised of sales-type leases for equipment. See “ Note 19. Leases ” for additional information. (2) Includes $6.4 million and $67.0 million of pledged loans under the Paycheck Protection Program (PPP), as of December 31, 2023 and 2022, respectively . (3) Comprised of $355.8 million and $340.4 million in allowance for future estimated net charge-offs on existing portfolio balances, net of a negative allowance of $45.4 million and $12.5 million for expected recoveries of amounts previously charged-off as of December 31, 2023 and 2022, respectively . (4) As of December 31, 2023 and 2022 , the Company had $3.5 billion and $283.6 million in loans pledged as collateral under the FRB Discount Window, respectively. In addition, as of December 31, 2023 and 2022, the Company had $479.0 million and $156.2 million in loans pledged to the FHLB of Des Moines, respectively. December 31, 2023 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 4,159,919 $ 298,061 $ 3,861,858 7.2 % Total commercial loans and leases held for investment 690,383 12,326 678,057 1.8 % Total loans and leases held for investment $ 4,850,302 $ 310,387 $ 4,539,915 6.4 % 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 ALLL to loans and leases HFI at amortized cost. The following table summarizes the aggregate fair value of the Company’s HFS loans, as well as the amount that was 90 days or more past due: December 31, 2023 December 31, 2022 Total 90 or more days past due Total 90 or more days past due Aggregate unpaid principal balance $ 431,955 $ 1,395 $ 114,920 $ 188 Cumulative fair value adjustments (24,182) (1,102) (4,520) (153) Fair value of loans held for sale $ 407,773 $ 293 $ 110,400 $ 35 The following table summarizes the aggregate fair value of the Company’s HFI loans held at fair value, as well as the amount that was 90 days or more past due: December 31, 2023 December 31, 2022 Total 90 or more days past due Total 90 or more days past due Aggregate unpaid principal balance $ 281,031 $ 3,774 $ 1,002,465 $ 6,345 Cumulative fair value adjustments (18,841) (3,037) (76,527) (5,158) Fair value of loans held for investment $ 262,190 $ 737 $ 925,938 $ 1,187 |
Financing Receivable, Allowance for Credit Loss | The activity in the ACL by portfolio segment was as follows: Year Ended December 31, 2023 2022 2021 Consumer Commercial Total 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 (1) 244,518 (948) 243,570 265,359 1,320 266,679 136,789 4,162 140,951 Initial allowance for PCD loans acquired during the period — — — — — — 603 11,837 12,440 Charge-offs (2) (278,105) (3,002) (281,107) (85,247) (2,226) (87,473) (8,789) (1,663) (10,452) Recoveries 19,159 913 20,072 3,565 692 4,257 209 1,241 1,450 Allowance for loan and lease losses, end of period $ 298,061 $ 12,326 $ 310,387 $ 312,489 $ 15,363 $ 327,852 $ 128,812 $ 15,577 $ 144,389 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) 13 (5) 18 629 647 — 1,231 1,231 Reserve for unfunded lending commitments, end of period (3) $ — $ 1,873 $ 1,873 $ 18 $ 1,860 $ 1,878 $ — $ 1,231 $ 1,231 (1) For the year ended December 31, 2021, includes $6.9 million of credit loss expense for acquired loans. (2) 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. (3) Relates to $78.1 million, $138.0 million and $110.8 million of unfunded commitments as of December 31, 2023, 2022 and 2021, respectively . |
Schedule of Financing Receivable Gross Charge-Offs and Credit Quality Indicators | The following table presents charge-offs by origination year for the year ended December 31, 2023: Gross Charge-Offs by Origination Year 2023 2022 2021 2020 2019 Prior Total Unsecured personal $ 23,340 $ 157,502 $ 94,147 $ — $ — $ — $ 274,989 Residential mortgages — — — — — — — Secured consumer 202 2,233 681 — — — 3,116 Total consumer loans held for investment 23,542 159,735 94,828 — — — 278,105 Equipment finance — — — — — — — Commercial real estate — — — — — — — Commercial and industrial — — 1,369 82 318 1,233 3,002 Total commercial loans and leases held for investment — — 1,369 82 318 1,233 3,002 Total loans and leases held for investment $ 23,542 $ 159,735 $ 96,197 $ 82 $ 318 $ 1,233 $ 281,107 December 31, 2023 Term Loans and Leases by Origination Year 2023 2022 2021 2020 2019 Prior Total Unsecured personal Current $ 1,498,737 $ 1,688,512 $ 438,296 $ — $ — $ — $ 3,625,545 30-59 days past due 9,034 17,017 6,665 — — — 32,716 60-89 days past due 7,767 15,538 6,251 — — — 29,556 90 or more days past due 6,924 16,564 6,644 — — — 30,132 Total unsecured personal (1) 1,522,462 1,737,631 457,856 — — — 3,717,949 Residential mortgages Current 53 48,473 54,855 29,960 18,917 29,041 181,299 30-59 days past due — — — — 1,331 420 1,751 60-89 days past due — — — — — — — 90 or more days past due — — — — — — — Total residential mortgages 53 48,473 54,855 29,960 20,248 29,461 183,050 Secured consumer Current 125,618 97,084 21,949 — 2,460 — 247,111 30-59 days past due 364 1,295 417 — — — 2,076 60-89 days past due 94 373 168 — — — 635 90 or more days past due — 153 64 — — — 217 Total secured consumer 126,076 98,905 22,598 — 2,460 — 250,039 Total consumer loans held for investment $ 1,648,591 $ 1,885,009 $ 535,309 $ 29,960 $ 22,708 $ 29,461 $ 4,151,038 (1) Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of December 31, 2023, the basis adjustment totaled $8.9 million and represents a reduction to the amortized cost of the hedged loans. See “ Note 9. 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: December 31, 2023 Term Loans and Leases by Origination Year 2023 2022 2021 2020 2019 Prior Total Guaranteed Amount (1) Equipment finance Pass $ 2,945 $ 33,430 $ 26,311 $ 7,754 $ 9,411 $ 6,288 $ 86,139 $ — Special mention — 15,235 1,962 5,873 1,335 — 24,405 — Substandard — — — 448 — — 448 — Doubtful — — — — — — — — Loss — — — — — — — — Total equipment finance 2,945 48,665 28,273 14,075 10,746 6,288 110,992 — Commercial real estate Pass 49,067 94,247 34,535 43,058 52,160 78,062 351,129 33,423 Special mention — — — — — 13,706 13,706 — Substandard — 3,598 7,716 — — 2,139 13,453 9,425 Doubtful — — — — — — — — Loss — — 1,515 — — 519 2,034 1,471 Total commercial real estate 49,067 97,845 43,766 43,058 52,160 94,426 380,322 44,319 Commercial and industrial Pass 40,636 60,352 39,304 9,525 10,282 11,626 171,725 104,928 Special mention — 10,881 1,532 729 137 444 13,723 9,384 Substandard — 2,304 5,426 673 1,045 1,434 10,882 6,908 Doubtful — 649 — 548 — 286 1,483 1,214 Loss — — — — — 1,256 1,256 1,229 Total commercial and industrial 40,636 74,186 46,262 11,475 11,464 15,046 199,069 123,663 Total commercial loans and leases held for investment $ 92,648 $ 220,696 $ 118,301 $ 68,608 $ 74,370 $ 115,760 $ 690,383 $ 167,982 (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) |
Past Due Financing Receivables | The following tables present an analysis of the past due loans and leases HFI at amortized cost within the commercial portfolio segment: December 31, 2023 30-59 60-89 90 or More Total Days Past Due Equipment finance $ 1,265 $ — $ — $ 1,265 Commercial real estate — 3,566 1,618 5,184 Commercial and industrial (1) 12,261 1,632 1,515 15,408 Total commercial loans and leases held for investment $ 13,526 $ 5,198 $ 3,133 $ 21,857 December 31, 2022 30-59 60-89 90 or More Total Days Past Due 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: Year Ended December 31, 2023 2022 Nonaccrual (1) Nonaccrual with no related ACL (2) Nonaccrual (1) Nonaccrual with no related ACL (2) Unsecured personal $ 30,132 $ — $ 16,255 $ — Residential mortgages 312 312 331 331 Secured consumer 217 — 188 — Total nonaccrual consumer loans held for investment 30,661 312 16,774 331 Equipment finance — — 898 39 Commercial real estate 9,663 2,187 1,018 1,018 Commercial and industrial 4,058 1,590 16,137 1,229 Total nonaccrual commercial loans and leases held for investment (3) 13,721 3,777 18,053 2,286 Total nonaccrual loans and leases held for investment $ 44,382 $ 4,089 $ 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 December 31, 2023 and 2022. (2) Subset of total nonaccrual loans and leases. (3) Includes $10.4 million and $4.9 million in loan balances guaranteed by the SBA as of December 31, 2023 and 2022, respectively. Year Ended December 31, 2023 2022 Nonaccrual Nonaccrual Ratios (1) Nonaccrual Nonaccrual Ratios (1) Total nonaccrual consumer loans held for investment $ 30,661 0.7 % $ 16,774 0.4 % Total nonaccrual commercial loans and leases held for investment 13,721 2.0 % 18,053 2.3 % Total nonaccrual loans and leases held for investment $ 44,382 0.9 % $ 34,827 0.7 % (1) Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI at amortized cost. |
Financing Receivable, Modified | The Company has the following programs to modify loans for borrowers experiencing financial difficulty. The table below presents the amortized cost of loans that were modified during the year ended December 31, 2023, by modification type and delinquency status: Combination – Interest Payment Reduction and Term Extension Debt Settlement Unsecured personal Current $ 7,741 $ 70 30-59 days 348 85 60-89 days 172 669 90 or more days 265 6,526 Total loan modifications $ 8,526 $ 7,350 Percentage of total unsecured personal loans at amortized cost as of end of period 0.2 % 0.2 % |
Securitizations and Variable _2
Securitizations and Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Summary 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 also has various forms of involvement with VIEs, including servicing loans and holding senior asset-backed securities or subordinated interests in the VIEs. Additionally, the carrying amount of assets and liabilities in the tables below exclude intercompany balances that were eliminated in consolidation. December 31, 2023 December 31, 2022 Consolidated Unconsolidated Total Consolidated Unconsolidated Total Assets Restricted cash $ 3,454 $ — $ 3,454 $ 8,048 $ — $ 8,048 Securities available for sale at fair value — 1,249,796 1,249,796 — 17,717 17,717 Loans held for investment at fair value 550 — 550 3,994 — 3,994 Retail and certificate loans held for investment at fair value 420 — 420 1,946 — 1,946 Other assets 14 31,531 31,545 206 10,464 10,670 Total assets $ 4,438 $ 1,281,327 $ 1,285,765 $ 14,194 $ 28,181 $ 42,375 Liabilities Borrowings $ 2,468 $ — $ 2,468 $ 8,085 $ — $ 8,085 Retail notes and certificates 420 — 420 1,946 — 1,946 Other liabilities 4 3,301 3,305 29 — 29 Total liabilities 2,892 3,301 6,193 10,060 — 10,060 Total net assets (maximum loss exposure) $ 1,546 $ 1,278,026 $ 1,279,572 $ 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: December 31, 2023 2022 2021 Fair value of consideration received: Cash $ 172,397 $ 5,320 $ — Asset-backed securities retained 1,299,313 2,180 — Other assets (liabilities) 16,740 (3,794) — Total consideration 1,488,450 3,706 — Deconsolidation of debt — 36,072 — Fair value of loans sold (1,474,077) (39,519) — Gain on sales of loans (1) $ 14,373 $ 259 $ — Cash proceeds from continuing involvement: Servicing and other administrative fees $ 5,475 $ 8,618 $ 23,586 Interest received on asset-backed securities retained $ 22,786 $ 7,285 $ 9,136 (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 Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy of Assets and Liabilities Measured on a Recurring Basis | The following tables present, by level within the fair value hierarchy, the Company’s assets and liabilities measured at fair value on a recurring basis: December 31, 2023 Level 1 Level 2 Level 3 Balance at Assets: Loans held for sale at fair value $ — $ — $ 407,773 $ 407,773 Loans held for investment at fair value — — 262,190 262,190 Retail and certificate loans held for investment at fair value — — 10,488 10,488 Securities available for sale: Senior asset-backed securities related to Structured Program transactions — — 1,176,403 1,176,403 U.S. agency residential mortgage-backed securities — 224,596 — 224,596 U.S. agency securities — 80,104 — 80,104 Other asset-backed securities related to Structured Program transactions — — 73,393 73,393 Mortgage-backed securities — 37,076 — 37,076 Other asset-backed securities — 26,101 — 26,101 Municipal securities — 2,589 — 2,589 Total securities available for sale — 370,466 1,249,796 1,620,262 Servicing assets — — 77,680 77,680 Other assets — 3,525 — 3,525 Total assets $ — $ 373,991 $ 2,007,927 $ 2,381,918 Liabilities: Borrowings $ — $ — $ 2,468 $ 2,468 Retail notes and certificates — — 10,488 10,488 Other liabilities — 12,072 7,655 19,727 Total liabilities $ — $ 12,072 $ 20,611 $ 32,683 December 31, 2022 Level 1 Level 2 Level 3 Balance at Fair Value 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 Mortgage-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 and certificates — — 55,425 55,425 Other liabilities — — 8,583 8,583 Total liabilities $ — $ — $ 72,093 $ 72,093 |
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following significant unobservable inputs were used in the fair value measurement of loans HFS: December 31, 2023 December 31, 2022 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rate 8.1 % 10.3 % 9.0 % 5.0 % 12.6 % 9.1 % Annualized net charge-off rate (1) 2.7 % 12.9 % 6.5 % 1.9 % 23.2 % 11.6 % Annualized prepayment rate (1) 15.7 % 22.5 % 19.9 % 18.5 % 27.7 % 22.9 % (1) The weighted-average rate is calculated using the original principal balance of each loan pool. The following significant unobservable inputs were used in the fair value measurement of loans HFI held at fair value: December 31, 2023 December 31, 2022 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rate 8.4 % 16.2 % 12.8 % 8.8 % 17.1 % 12.7 % Annualized net charge-off rate (1) 1.9 % 5.9 % 3.7 % 1.6 % 5.3 % 3.2 % Annualized prepayment rate (1) 18.6 % 27.7 % 22.6 % 19.5 % 31.0 % 24.0 % (1) The weighted-average rate is calculated using the original principal balance of each loan pool. The following significant unobservable inputs were used in the fair value measurement of other asset-backed securities related to Structured Program transactions: December 31, 2023 Minimum Maximum Weighted- Discount rate 8.1 % 10.3 % 9.0 % Annualized net charge-off rate (1) 4.9 % 5.9 % 5.5 % Annualized prepayment rate (1) 19.2 % 21.0 % 20.1 % (1) The weighted-average rate is calculated using the original principal balance of each security. The following significant unobservable inputs were used in the fair value measurement for servicing assets related to loans sold to investors: December 31, 2023 December 31, 2022 Minimum Maximum Weighted- Minimum Maximum Weighted-Average Discount rate 8.7 % 17.3 % 11.3 % 7.5 % 16.4 % 10.1 % Annualized net charge-off rate (1) 1.9 % 24.0 % 8.7 % 1.3 % 23.7 % 9.3 % Annualized prepayment rate (1) 15.6 % 25.7 % 20.3 % 16.3 % 30.9 % 24.4 % Market servicing rate (2) 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % 0.62 % (1) The weighted-average rate is calculated using the original principal balance of each loan pool. (2) The fees a willing market participant would require for the servicing of loans with similar characteristics as those in the Company’s serviced portfolio. |
Schedule Of Fair Value Sensitivity Of Loans | The sensitivity of loans HFS at fair value to adverse changes in key assumptions was as follows: December 31, 2023 December 31, 2022 Loans held for sale at fair value $ 407,773 $ 110,400 Expected remaining weighted-average life (in years) 1.5 1.4 Discount rate: 100 basis point increase $ (5,093) $ (1,334) 200 basis point increase $ (10,051) $ (2,643) Annualized net charge-off rate: 10% increase $ (5,102) $ (2,289) 20% increase $ (10,184) $ (4,505) Annualized prepayment rate: 10% increase $ (851) $ (529) 20% increase $ (1,628) $ (1,008) The sensitivity of loans HFI at fair value to adverse changes in key assumptions was as follows: December 31, 2023 December 31, 2022 Loans held for investment at fair value $ 262,190 $ 925,938 Expected remaining weighted-average life (in years) 0.9 0.9 Discount rate: 100 basis point increase $ (1,957) $ (7,471) 200 basis point increase $ (3,888) $ (14,830) Annualized net charge-off rate: 10% increase $ (1,753) $ (5,574) 20% increase $ (3,595) $ (11,307) Annualized prepayment rate: 10% increase $ (857) $ (4,311) 20% increase $ (1,675) $ (7,480) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents loans HFS at fair value activity: Balance at December 31, 2021 $ 142,370 Originations and purchases 9,045,701 Sales (9,039,892) Principal payments (31,253) Transfers (11,907) Fair value adjustments recorded in earnings 5,381 Balance at December 31, 2022 $ 110,400 Originations and purchases 4,942,457 Sales (4,634,155) Principal payments (70,350) Transfers 195,106 Fair value adjustments recorded in earnings (135,685) Balance at December 31, 2023 $ 407,773 The following table presents loans HFI at fair value activity: Balance at December 31, 2021 $ 21,240 Purchases 954,086 Principal payments (74,393) Transfers 22,294 Interest income accretion and fair value adjustments recorded in earnings 2,711 Balance at December 31, 2022 $ 925,938 Purchases 4,243 Principal payments (485,043) Transfers (195,106) Interest income accretion and fair value adjustments recorded in earnings 12,158 Balance at December 31, 2023 $ 262,190 The following table presents senior asset-backed securities related to Structured Program transactions activity: December 31, 2023 Fair value at beginning of period $ — Additions 1,225,796 Cash received (60,283) Change in unrealized gain 10,890 Fair value at end of period $ 1,176,403 The following table presents additional information about Level 3 other asset-backed securities related to Structured Program transactions measured at fair value: December 31, 2023 Fair value at beginning of period $ 12,469 Additions 73,516 Cash received (12,634) Change in unrealized gain 42 Fair value at end of period $ 73,393 The following table presents servicing assets measured at fair value activity: Fair value at December 31, 2021 $ 67,726 Issuances (1) 93,352 Change in fair value, included in Marketplace Revenue (73,229) Other net changes (3,541) Fair value at December 31, 2022 $ 84,308 Issuances (1) 56,032 Change in fair value, included in Marketplace Revenue (62,581) Other net changes (79) Fair value at December 31, 2023 $ 77,680 (1) Represents the servicing assets recorded when loans are sold. Included in “Gain on sales of loans” within “Marketplace revenue” on the Income Statement. |
Schedule of Sensitivity Analysis of Debt Securities Available-for-Sale | The sensitivity in the fair value of other asset-backed securities related to Structured Program transactions to changes in key assumptions was as follows: December 31, 2023 Fair value of interests held $ 73,393 Expected remaining weighted-average life (in years) 1.5 Discount rate 100 basis point increase $ (927) 200 basis point increase $ (1,836) Annualized net charge-off rate 10% increase $ (882) 20% increase $ (1,771) Annualized prepayment rate 10% increase $ (203) 20% increase $ (430) |
Schedule of Fair Value Sensitivity of Servicing Assets | The sensitivity of the fair value of servicing assets to adverse changes in key assumptions was as follows: December 31, 2023 December 31, 2022 Fair value of servicing assets $ 77,680 $ 84,308 Expected remaining weighted-average life (in years) 1.2 1.2 Discount rate: 100 basis point increase $ (675) $ (726) 200 basis point increase $ (1,349) $ (1,451) Annualized net charge-off rate: 10% increase $ (878) $ (1,037) 20% increase $ (1,756) $ (2,074) Annualized prepayment rate: 10% increase $ (1,550) $ (1,994) 20% increase $ (3,100) $ (3,989) |
Fair Value, by Balance Sheet Grouping | The following tables present the carrying amount and estimated fair values, by level within the fair value hierarchy, of the Company’s assets and liabilities that are not recorded at fair value on a recurring basis: December 31, 2023 Carrying Amount Level 1 Level 2 Level 3 Balance at Assets: Loans and leases held for investment, net $ 4,539,915 $ — $ — $ 4,675,354 $ 4,675,354 Other assets 37,605 — 36,884 1,017 37,901 Total assets $ 4,577,520 $ — $ 36,884 $ 4,676,371 $ 4,713,255 Liabilities: Deposits (1) $ 1,714,889 $ — $ — $ 1,714,203 $ 1,714,203 Borrowings 6,398 — — 6,398 6,398 Other liabilities 59,015 — 36,823 22,192 59,015 Total liabilities $ 1,780,302 $ — $ 36,823 $ 1,742,793 $ 1,779,616 December 31, 2022 Carrying Amount Level 1 Level 2 Level 3 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. |
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: December 31, 2023 December 31, 2022 Weighted-average market servicing rate assumptions 0.62 % 0.62 % Change in fair value from: Market servicing rate increase by 0.10% $ (8,719) $ (10,505) Market servicing rate decrease by 0.10% $ 8,719 $ 10,505 |
Loans and Notes and Certificates | The following table presents the components of each portfolio segment by class of financing receivable: December 31, 2023 December 31, 2022 Unsecured personal $ 3,726,830 $ 3,866,373 Residential mortgages 183,050 199,601 Secured consumer 250,039 194,634 Total consumer loans held for investment 4,159,919 4,260,608 Equipment finance (1) 110,992 160,319 Commercial real estate 380,322 373,501 Commercial and industrial (2) 199,069 238,726 Total commercial loans and leases held for investment 690,383 772,546 Total loans and leases held for investment 4,850,302 5,033,154 Allowance for loan and lease losses (3) (310,387) (327,852) Loans and leases held for investment, net (4) $ 4,539,915 $ 4,705,302 (1) Comprised of sales-type leases for equipment. See “ Note 19. Leases ” for additional information. (2) Includes $6.4 million and $67.0 million of pledged loans under the Paycheck Protection Program (PPP), as of December 31, 2023 and 2022, respectively . (3) Comprised of $355.8 million and $340.4 million in allowance for future estimated net charge-offs on existing portfolio balances, net of a negative allowance of $45.4 million and $12.5 million for expected recoveries of amounts previously charged-off as of December 31, 2023 and 2022, respectively . (4) As of December 31, 2023 and 2022 , the Company had $3.5 billion and $283.6 million in loans pledged as collateral under the FRB Discount Window, respectively. In addition, as of December 31, 2023 and 2022, the Company had $479.0 million and $156.2 million in loans pledged to the FHLB of Des Moines, respectively. December 31, 2023 Gross ALLL Net Allowance Ratios (1) Total consumer loans held for investment $ 4,159,919 $ 298,061 $ 3,861,858 7.2 % Total commercial loans and leases held for investment 690,383 12,326 678,057 1.8 % Total loans and leases held for investment $ 4,850,302 $ 310,387 $ 4,539,915 6.4 % 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 ALLL to loans and leases HFI at amortized cost. The following table summarizes the aggregate fair value of the Company’s HFS loans, as well as the amount that was 90 days or more past due: December 31, 2023 December 31, 2022 Total 90 or more days past due Total 90 or more days past due Aggregate unpaid principal balance $ 431,955 $ 1,395 $ 114,920 $ 188 Cumulative fair value adjustments (24,182) (1,102) (4,520) (153) Fair value of loans held for sale $ 407,773 $ 293 $ 110,400 $ 35 The following table summarizes the aggregate fair value of the Company’s HFI loans held at fair value, as well as the amount that was 90 days or more past due: December 31, 2023 December 31, 2022 Total 90 or more days past due Total 90 or more days past due Aggregate unpaid principal balance $ 281,031 $ 3,774 $ 1,002,465 $ 6,345 Cumulative fair value adjustments (18,841) (3,037) (76,527) (5,158) Fair value of loans held for investment $ 262,190 $ 737 $ 925,938 $ 1,187 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2023: Notional Gross Derivative Liability Fair Value (1) Derivatives used for hedging: Interest rate swaps $ 1,500,000 $ (8,547) (1) Recorded in “Other liabilities” 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 year ended December 31, 2023: Gains (losses) recognized on: Hedged item $ 8,881 Derivatives used for hedging (8,547) Interest settlement on derivative (1) 2,514 Total gains on fair value hedges (2) $ 2,848 (1) Includes accrued interest receivable and accrued interest payable. (2) Recorded in “Interest and fees on loans held for investment” 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 December 31, 2023: Balance Sheet Line Item Carrying Amount of Closed Portfolio (1) Cumulative Fair Value Adjustment to Hedged Item (2) Loans and leases held for investment at amortized cost $ 3,109,854 $ 8,881 (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 December 31, 2023, the amortized cost of loans designated as the hedged item in the portfolio layer hedging relationship was $1.5 billion. (2) Included in the carrying amount of the closed portfolio of loans. |
Property, Equipment and Softw_2
Property, Equipment and Software, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software | Property, equipment and software, net, consist of the following: December 31, 2023 2022 Software (1) $ 209,260 $ 174,360 Leasehold improvements 30,764 31,214 Computer equipment 21,654 27,410 Furniture and fixtures 5,845 6,088 Total property, equipment and software 267,523 239,072 Accumulated depreciation and amortization (106,006) (102,599) Total property, equipment and software, net $ 161,517 $ 136,473 (1) Includes $66.9 million and $43.7 million of development in progress for internally-developed software and $4.6 million and $3.0 million of development in progress to customize purchased software as of December 31, 2023 and 2022, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2023 2022 Gross carrying value $ 54,500 $ 54,500 Accumulated amortization (42,365) (38,166) Net carrying value $ 12,135 $ 16,334 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The expected future amortization expense for intangible assets as of December 31, 2023, is as follows: 2024 $ 3,549 2025 2,901 2026 2,252 2027 1,603 2028 945 Thereafter 885 Total $ 12,135 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: December 31, 2023 2022 Deferred tax assets, net (1) $ 151,411 $ 173,687 Servicing assets (2) 78,401 85,654 Nonmarketable equity investments 42,891 38,320 Accrued interest receivable 35,793 30,901 Operating lease assets 26,611 63,872 Intangible assets, net (3) 12,135 16,334 Other 108,211 91,538 Total other assets $ 455,453 $ 500,306 (1) See “ Note 18. Income Taxes ” for additional detail. (2) Loans underlying servicing assets had a total outstanding principal balance of $9.5 billion and $11.0 billion as of December 31, 2023 and 2022, respectively. (3) See “ Note 11. Goodwill and Intangible Assets ” for additional detail. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Deposits | Deposits consist of the following: December 31, 2023 2022 Interest-bearing deposits: Savings and money market accounts $ 4,349,239 $ 3,616,657 Certificates of deposit 1,714,889 860,808 Checking accounts 937,552 1,681,095 Total $ 7,001,680 $ 6,158,560 Noninterest-bearing deposits 331,806 233,993 Total deposits $ 7,333,486 $ 6,392,553 Total certificates of deposit at December 31, 2023 are scheduled to mature as follows: 2024 $ 1,559,553 2025 142,515 2026 1,593 2027 9,226 2028 2,002 Total certificates of deposit $ 1,714,889 The following table presents the amount of certificates of deposit with denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand, segregated by time remaining until maturity, as of December 31, 2023: Three months or less Over 3 months through Over 6 months through Over Total Certificates of deposit $ 5,673 $ 8,139 $ 132,912 $ 3,403 $ 150,127 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following table summarizes the Company’s long-term debt, as of the dates indicated: December 31, 2023 2022 Advances from PPPLF (1) : Aggregate debt outstanding (fixed interest rate of 0.35%) $ 6,398 $ 64,154 Pledged collateral $ 6,392 $ 66,971 Retail notes and certificates (2) : Aggregate debt outstanding $ 10,488 $ 55,425 Payable on Structured Program borrowings (3) : Aggregate debt outstanding $ 2,468 $ 8,085 Pledged collateral $ 3,930 $ 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 $0.5 million and $4.0 million and "Restricted cash” of $3.4 million and $5.7 million as of December 31, 2023 and 2022, respectively. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Other Liabilities | Other liabilities consist of the following: December 31, 2023 2022 Accounts payable and accrued expenses $ 54,619 $ 98,173 Operating lease liabilities 37,869 77,291 Payable to investors (1) 36,823 30,311 Other 93,490 86,842 Total other liabilities $ 222,801 $ 292,617 (1) Represents principal and interest on loans collected by the Company and pending disbursement to investors. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) represents other cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) were as follows: Year Ended December 31, 2023 Before Tax Tax Effect Net of Tax Change in net unrealized gain on securities available for sale $ 10,238 $ (2,926) $ 7,312 Other comprehensive income $ 10,238 $ (2,926) $ 7,312 Year Ended December 31, 2022 Before Tax Tax Effect Net of Tax Change in net unrealized loss on securities available for sale $ (61,326) $ 16,664 $ (44,662) Other comprehensive loss $ (61,326) $ 16,664 $ (44,662) Year Ended December 31, 2021 Before Tax Tax Effect Net of Tax Change in net unrealized gain on securities available for sale $ 5,562 $ — $ 5,562 Other comprehensive income $ 5,562 $ — $ 5,562 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) balances were as follows: Total Balance at December 31, 2021 $ 7,046 Net unrealized loss on securities available for sale (44,662) Balance at December 31, 2022 $ (37,616) Net unrealized gain on securities available for sale 7,312 Balance at December 31, 2023 $ (30,304) |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Shares of common stock reserved for future issuance was as follows: December 31, 2023 2022 Available for future RSU, PBRSU and stock option grants 22,732,012 17,473,925 Unvested RSUs, PBRSUs and stock options outstanding 9,338,246 11,676,962 Available for ESPP 7,484,043 6,302,187 Total reserved for future issuance 39,554,301 35,453,074 |
Total Stock-based Compensation Expense | Stock-based compensation expense, included in “Compensation and benefits” expense on the Income Statement, was as follows for the periods presented: Year Ended December 31, 2023 2022 2021 RSUs and PBRSUs $ 61,619 $ 74,334 $ 70,935 Stock options — 46 599 Stock-based compensation expense, gross 61,619 74,380 71,534 Less: Capitalized stock-based compensation expense 9,230 8,018 4,383 Stock-based compensation expense, net $ 52,389 $ 66,362 $ 67,151 |
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 7,138,085 $ 7.57 Vested (5,575,341) $ 11.44 Forfeited/expired (3,235,539) $ 11.28 Unvested at December 31, 2023 6,999,831 $ 9.42 |
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 (221,818) $ 12.37 Unvested at December 31, 2023 1,469,813 $ 12.60 |
Schedule of Options Activity | The following table summarizes the activities for the Company’s stock options: Number of Weighted-Average Weighted-Average Aggregate Intrinsic Value (1) (in thousands) Outstanding at December 31, 2022 1,249,451 $ 37.11 Exercised (35,473) $ 5.30 Forfeited/Expired (345,376) $ 35.57 Outstanding at December 31, 2023 868,602 $ 39.02 1.2 $ 15 Exercisable at December 31, 2023 868,602 $ 39.02 1.2 $ 15 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company’s closing stock price of $8.74 as reported on the New York Stock Exchange on December 29, 2023. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax benefit (expense) consisted of the following: Year Ended December 31, 2023 2022 2021 Current: Federal $ (3,180) $ — $ — State 5,060 (20,812) (3,541) Total current tax benefit (expense) $ 1,880 $ (20,812) $ (3,541) Deferred: Federal $ (11,427) $ 121,520 $ 2,066 State (6,131) 35,940 1,611 Total deferred benefit (expense) $ (17,558) $ 157,460 $ 3,677 Income tax benefit (expense) $ (15,678) $ 136,648 $ 136 |
Schedule of Effective Income Tax Rate Reconciliation | The table below presents a reconciliation of the income tax benefit (expense) at the statutory federal income tax rate to the income tax benefit (expense) at the effective income tax rate: Year Ended December 31, 2023 2022 2021 Statutory federal tax expense $ (11,470) $ (32,140) $ (3,873) State tax, net of federal tax benefit (903) 11,951 (1,524) Stock-based compensation tax benefit (expense) (4,392) 271 11,839 Research and development tax credits 4,600 10,907 4,354 Change in valuation allowance — 154,081 (7,867) Change in unrecognized tax benefit (1,380) (3,438) (2,177) Non-deductible expenses (2,351) (4,737) (742) Other 218 (247) 126 Income tax benefit (expense) $ (15,678) $ 136,648 $ 136 |
Deferred Tax Assets and Liabilities | The significant components of the Company’s net deferred tax asset were as follows: December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 60,432 $ 64,288 Allowance for loan and lease losses 84,119 89,718 Stock-based compensation 7,399 10,121 Unrealized loss on AFS securities 12,484 17,214 Deferred compensation 6,574 12,690 Reserves and accruals 12,651 13,474 Operating lease liabilities 10,185 20,999 Goodwill 10,203 12,267 Tax credit carryforwards 27,924 26,913 Other 3,926 4,249 Gross deferred tax assets 235,897 271,933 Valuation allowance (46,108) (47,721) Total deferred tax assets $ 189,789 $ 224,212 Deferred tax liabilities: Internally developed software $ (9,934) $ (11,687) Servicing assets (2,171) (2,634) Operating lease assets (7,157) (17,353) Leases (13,121) (15,694) Other (5,995) (3,157) Total deferred tax liabilities $ (38,378) $ (50,525) Deferred tax assets, net $ 151,411 $ 173,687 |
Changes in Unrecognized Tax Benefit | A reconciliation of the beginning and ending balance of total unrecognized tax benefits was as follows: Year Ended December 31, 2023 2022 2021 Beginning balance $ 27,850 $ 22,512 $ 17,626 Gross increase for tax positions related to prior years (161) 2,488 1,272 Gross increase for tax positions related to the current year 2,373 2,850 3,614 Ending balance $ 30,062 $ 27,850 $ 22,512 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Sales-type Lease, Lease Income | The components of Equipment Finance assets are as follows: December 31, 2023 2022 Lease receivables $ 92,546 $ 137,969 Unguaranteed residual asset values 28,913 39,262 Unearned income (11,072) (17,786) Deferred fees 605 874 Total $ 110,992 $ 160,319 |
Future Minimum Payments to be Received, Fiscal Year Maturity | Future minimum lease payments based on maturity of the Company’s lessor arrangements as of December 31, 2023 were as follows: 2024 $ 38,583 2025 27,289 2026 16,411 2027 7,845 2028 4,053 Thereafter 1,545 Total lease payments $ 95,726 Discount effect (3,180) Present value of future minimum lease payments $ 92,546 |
Supplemental Balance Sheet Information | Balance sheet information related to leases was as follows: ROU Assets and Lease Liabilities Balance Sheet Classification December 31, 2023 December 31, 2022 Operating lease assets Other assets $ 26,611 $ 63,872 Operating lease liabilities Other liabilities $ 37,869 $ 77,291 |
Lease Costs | Components of net lease costs were as follows: Year Ended December 31, Net Lease Costs Income Statement Classification 2023 2022 2021 Operating lease costs Occupancy $ (11,963) $ (15,189) $ (18,773) Sublease revenue Other non-interest income — 2,847 6,149 Net lease costs $ (11,963) $ (12,342) $ (12,624) |
Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s operating leases was as follows: Year Ended December 31, 2023 2022 2021 Non-cash operating activity: Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities (1) $ (29,745) $ (3,650) $ 12,914 (1) Amounts include noncash remeasurements of the operating lease ROU asset. |
Future Minimum Undiscounted Lease Payments | The Company’s future minimum undiscounted lease payments under operating leases as of December 31, 2023 were as follows: Operating Lease 2024 $ 12,798 2025 13,129 2026 7,228 2027 4,265 2028 3,922 Thereafter 909 Total lease payments $ 42,251 Discount effect 4,382 Present value of future minimum lease payments $ 37,869 |
Weighted-average Remaining Lease Term and Discount Rate | The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows: Lease Term and Discount Rate December 31, 2023 Weighted-average remaining lease term (in years) 3.72 Weighted-average discount rate 5.04 % |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2023 December 31, 2022 Required Minimum plus Required CCB for Non-Leverage Ratios Amount Ratio Amount Ratio LendingClub Corporation: CET1 capital (1) $ 1,090.2 17.9 % $ 1,005.8 15.8 % 7.0 % Tier 1 capital $ 1,090.2 17.9 % $ 1,005.8 15.8 % 8.5 % Total capital $ 1,169.2 19.2 % $ 1,088.1 17.1 % 10.5 % Tier 1 leverage $ 1,090.2 12.9 % $ 1,005.8 14.1 % 4.0 % Risk-weighted assets $ 6,104.5 N/A $ 6,360.7 N/A N/A Quarterly adjusted average assets $ 8,476.1 N/A $ 7,119.0 N/A N/A LendingClub Bank: CET1 capital (1) $ 949.4 15.8 % $ 852.2 13.8 % 7.0 % Tier 1 capital $ 949.4 15.8 % $ 852.2 13.8 % 8.5 % Total capital $ 1,027.4 17.1 % $ 932.4 15.1 % 10.5 % Tier 1 leverage $ 949.4 11.4 % $ 852.2 12.5 % 4.0 % Risk-weighted assets $ 6,022.2 N/A $ 6,194.0 N/A N/A Quarterly adjusted average assets $ 8,337.4 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. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for the segments is presented in the following tables: LendingClub LendingClub Corporation (Parent only) Intercompany Consolidated Total Year Ended December 31, Eleven Months Ended December 31, Year Ended December 31, Year Ended December 31, Eleven Months Ended December 31, Year Ended December 31, 2023 2022 2021 (1) 2023 2022 2021 2023 2022 2021 (1) 2023 2022 2021 Non-interest income: Marketplace revenue $ 206,381 $ 610,536 $ 462,821 $ 41,817 $ 48,231 $ 115,759 $ 43,286 $ 24,859 $ — $ 291,484 $ 683,626 $ 578,580 Other non-interest income 74,684 85,208 94,953 9,503 15,628 16,718 (72,890) (72,071) (84,452) 11,297 28,765 27,219 Total non-interest income 281,065 695,744 557,774 51,320 63,859 132,477 (29,604) (47,212) (84,452) 302,781 712,391 605,799 Interest income: Interest income 818,206 526,471 210,739 14,424 30,869 82,093 — — — 832,630 557,340 292,832 Interest expense (266,218) (60,954) (8,412) (4,574) (21,561) (71,589) — — — (270,792) (82,515) (80,001) Net interest income 551,988 465,517 202,327 9,850 9,308 10,504 — — — 561,838 474,825 212,831 Total net revenue 833,053 1,161,261 760,101 61,170 73,167 142,981 (29,604) (47,212) (84,452) 864,619 1,187,216 818,630 (Provision for) reversal of credit losses (243,565) (267,326) (142,182) — — 3,382 — — — (243,565) (267,326) (138,800) Non-interest expense (537,026) (724,304) (547,799) (59,015) (89,761) (198,039) 29,604 47,212 84,452 (566,437) (766,853) (661,386) Income (Loss) before income tax benefit (expense) 52,462 169,631 70,120 2,155 (16,594) (51,676) — — — 54,617 153,037 18,444 Income tax benefit (expense) (17,881) (42,354) 9,171 2,203 125,954 44,013 — 53,048 (53,048) (15,678) 136,648 136 Net income (loss) $ 34,581 $ 127,277 $ 79,291 $ 4,358 $ 109,360 $ (7,663) $ — $ 53,048 $ (53,048) $ 38,939 $ 289,685 $ 18,580 Capital expenditures $ 59,509 $ 69,481 $ 32,602 $ — $ — $ 1,811 $ — $ — $ — $ 59,509 $ 69,481 $ 34,413 Depreciation and amortization $ 30,216 $ 16,489 $ 4,569 $ 16,979 $ 27,342 $ 39,716 $ — $ — $ — $ 47,195 $ 43,831 $ 44,285 (1) Because the LendingClub Bank reportable segment was formed upon the Acquisition on February 1, 2021, the associated results are presented for the eleven month period ended December 31, 2021. LendingClub Bank LendingClub Corporation Intercompany Consolidated Total December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Assets Total cash and cash equivalents $ 1,230,206 $ 1,020,874 $ 110,273 $ 56,475 $ (87,975) $ (20,319) $ 1,252,504 $ 1,057,030 Restricted cash — — 46,628 75,409 (4,984) (7,955) 41,644 67,454 Securities available for sale at fair value 1,617,309 329,287 2,953 16,415 — — 1,620,262 345,702 Loans held for sale at fair value 407,773 110,400 — — — — 407,773 110,400 Loans and leases held for investment, net 4,539,915 4,705,302 — — — — 4,539,915 4,705,302 Loans held for investment at fair value 253,800 906,711 8,390 19,227 — — 262,190 925,938 Retail and certificate loans held for investment at fair value — — 10,488 55,425 — — 10,488 55,425 Property, equipment and software, net 144,439 102,274 17,078 34,199 — — 161,517 136,473 Investment in subsidiary — — 816,703 755,319 (816,703) (755,319) — — Goodwill 75,717 75,717 — — — — 75,717 75,717 Other assets 341,680 339,341 131,135 173,851 (17,362) (12,886) 455,453 500,306 Total assets 8,610,839 7,589,906 1,143,648 1,186,320 (927,024) (796,479) 8,827,463 7,979,747 Liabilities and Equity Total deposits 7,426,445 6,420,827 — — (92,959) (28,274) 7,333,486 6,392,553 Borrowings 6,398 64,154 2,468 10,704 — — 8,866 74,858 Retail notes and certificates — — 10,488 55,425 — — 10,488 55,425 Other liabilities 154,077 189,185 86,086 116,318 (17,362) (12,886) 222,801 292,617 Total liabilities 7,586,920 6,674,166 99,042 182,447 (110,321) (41,160) 7,575,641 6,815,453 Total equity 1,023,919 915,740 1,044,606 1,003,873 (816,703) (755,319) 1,251,822 1,164,294 Total liabilities and equity $ 8,610,839 $ 7,589,906 $ 1,143,648 $ 1,186,320 $ (927,024) $ (796,479) $ 8,827,463 $ 7,979,747 |
LendingClub Corporation _ Par_2
LendingClub Corporation – Parent Company-Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Condensed Statements of Income (Loss) | Statements of Income Year Ended December 31, 2023 2022 2021 Non-interest income: Marketplace revenue $ 41,817 $ 48,231 $ 115,759 Other non-interest income 9,503 15,628 16,718 Total non-interest income 51,320 63,859 132,477 Interest income: Interest on loans held for sale — 1,390 11,025 Interest on loans held for investment at fair value 2,589 2,875 4,436 Interest on retail and certificate loans held for investment at fair value 4,222 18,135 57,684 Interest on securities available for sale 6,802 7,608 8,922 Other interest income 811 861 26 Total interest income 14,424 30,869 82,093 Interest expense: Interest on retail notes and certificates at fair value 4,222 18,135 57,684 Other interest expense 352 3,426 13,905 Total interest expense 4,574 21,561 71,589 Net interest income 9,850 9,308 10,504 Total net revenue 61,170 73,167 142,981 Reversal of credit losses — — (3,382) Non-interest expense: Compensation and benefits 6,520 7,770 31,010 Marketing — 188 5,460 Equipment and software 246 194 2,459 Depreciation and amortization 16,979 27,342 39,716 Professional services 1,210 523 14,666 Occupancy 9,552 13,346 17,751 Other non-interest expense 24,508 40,398 86,977 Total non-interest expense 59,015 89,761 198,039 Income (Loss) before income tax benefit 2,155 (16,594) (51,676) Income tax benefit 2,203 125,954 44,013 Income (Loss) before undistributed earnings of subsidiary 4,358 109,360 (7,663) Equity in undistributed earnings of subsidiary 34,581 127,277 79,291 Net income $ 38,939 $ 236,637 $ 71,628 |
Condensed Statement of Comprehensive Income (Loss) | Statements of Comprehensive Income Year Ended December 31, 2023 2022 2021 Net income $ 38,939 $ 236,637 $ 71,628 Other comprehensive income (loss), net of tax: Net unrealized gain (loss) on securities available for sale 6,706 (1,556) 9,153 Equity in other comprehensive loss of subsidiary (1,282) (43,528) (2,619) Other comprehensive income (loss), net of tax 5,424 (45,084) 6,534 Total comprehensive income $ 44,363 $ 191,553 $ 78,162 |
Condensed Balance Sheets | Balance Sheets December 31, 2023 2022 Assets Cash and due from banks $ 96,384 $ 34,119 Interest-bearing deposits in banks 13,889 22,356 Total cash and cash equivalents 110,273 56,475 Restricted cash 46,628 75,409 Securities available for sale at fair value ($264 and $8,322 at amortized cost, respectively) 2,953 16,415 Loans held for investment at fair value 8,390 19,227 Retail and certificate loans held for investment at fair value 10,488 55,425 Property, equipment and software, net 17,078 34,199 Investment in subsidiary 937,987 923,618 Other assets 126,899 165,973 Total assets $ 1,260,696 $ 1,346,741 Liabilities and Equity Borrowings $ 2,468 $ 10,704 Retail notes and certificates at fair value 10,488 55,425 Other liabilities 86,086 116,318 Total liabilities 99,042 182,447 Equity Common stock, $0.01 par value; 180,000,000 shares authorized; 110,410,602 and 106,546,995 shares issued and outstanding, respectively 1,104 1,065 Additional paid-in capital 1,669,828 1,628,590 Accumulated deficit (468,097) (427,745) Accumulated other comprehensive loss (41,181) (37,616) Total equity 1,161,654 1,164,294 Total liabilities and equity $ 1,260,696 $ 1,346,741 |
Condensed Statements of Cash Flows | Statements of Cash Flows Year Ended December 31, 2023 2022 2021 Cash Flows from Operating Activities: Parent company net income $ 38,939 $ 236,637 $ 71,628 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (34,581) (127,277) (79,291) Income tax benefit (2,203) (125,954) (44,013) Net fair value adjustments (2,903) (5,929) (5,936) Reversal of credit losses — — (3,382) Change in fair value of loan servicing assets 50,281 33,840 37,138 Stock-based compensation, net 5,253 6,310 14,506 Depreciation and amortization 16,979 27,342 39,716 Gain on sales of loans — — (3,372) Other, net 274 16 9,326 Net change to loans held for sale 5,953 31,658 90,609 Net change in operating assets and liabilities: Other assets (30,602) 42,219 (29,556) Other liabilities (30,741) (38,258) (95,737) Net cash provided by operating activities 16,649 80,604 1,636 Cash Flows from Investing Activities: Acquisition of company — — (145,344) Payments for investments in and advances to subsidiary — (50,000) (250,001) Purchase of servicing asset investment (50,576) (59,880) — Proceeds from servicing asset investment 72,343 24,564 — Net change in loans and leases 5,066 4,443 1,360 Net decrease in retail and certificate loans 47,545 171,853 437,870 Proceeds from maturities and paydowns of securities available for sale 7,861 46,548 103,258 Purchases of property, equipment and software, net — — (1,811) Other investing activities 200 2,370 8,804 Net cash provided by investing activities 82,439 139,898 154,136 Cash Flows from Financing Activities: Principal payments on retail notes and certificates (47,545) (182,260) (438,032) Principal payments on Structured Program borrowings (4,073) (21,423) (90,187) Principal payments on short-term borrowings (2,619) (25,415) (81,935) Principal payments on long term debt — (15,300) — Other financing activities (19,834) (9,028) (9,295) Net cash used for financing activities (74,071) (253,426) (619,449) Net Change in Cash, Cash Equivalents and Restricted Cash 25,017 (32,924) (463,677) Cash, Cash Equivalents and Restricted Cash, Beginning of Period 131,884 164,808 628,485 Cash, Cash Equivalents and Restricted Cash, End of Period $ 156,901 $ 131,884 $ 164,808 (1) Prior period amounts have been reclassified to conform to the current period presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Detail) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Changes in fair value, location | Marketplace revenue | Marketplace revenue |
Minimum | ||
Class of Stock [Line Items] | ||
Property and equipment, estimated useful life | 3 years | |
Maximum | ||
Class of Stock [Line Items] | ||
Property and equipment, estimated useful life | 5 years |
Business Acquisition - Consider
Business Acquisition - Consideration (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Feb. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 29, 2021 | |
Business Acquisition [Line Items] | |||||
Cash paid | $ 0 | $ 0 | $ 145,344 | ||
Parent | |||||
Business Acquisition [Line Items] | |||||
Cash paid | $ 0 | $ 0 | $ 145,344 | ||
Radius Bancorp, Inc | |||||
Business Acquisition [Line Items] | |||||
Cash paid | $ 140,256 | ||||
Fair value of common stock issued | 40,808 | ||||
Consideration related to share-based payments | 5,742 | ||||
Total consideration paid | $ 186,806 | ||||
Stocks issued in acquisition (shares) | 3,761,114 | ||||
Radius Bancorp, Inc | Parent | |||||
Business Acquisition [Line Items] | |||||
LendingClub share price ($ per share) | $ 10.85 |
Business Acquisition - Purchase
Business Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 01, 2021 |
Assets acquired: | |||
Goodwill | $ 75,717 | $ 75,717 | |
Radius Bancorp, Inc | |||
Assets acquired: | |||
Cash and due from banks | $ 18,184 | ||
Interest-bearing deposits in banks | 650,052 | ||
Total cash and cash equivalents | 668,236 | ||
Securities available for sale at fair value | 259,037 | ||
Loans and leases held for investment | 1,589,054 | ||
Allowance for loan and lease losses | (12,440) | ||
Loans and leases held for investment, net | 1,576,614 | ||
Property, equipment and software | 1,926 | ||
Goodwill | 75,717 | ||
Other assets | 86,482 | ||
Total assets | 2,668,012 | ||
Liabilities assumed: | |||
Non-interest bearing deposits | 146,187 | ||
Interest-bearing deposits | 1,862,272 | ||
Total deposits | 2,008,459 | ||
Short-term borrowings | 9,870 | ||
Advances from PPPLF | 420,962 | ||
Other long-term debt | 18,630 | ||
Other liabilities | 23,285 | ||
Total liabilities | 2,481,206 | ||
Total consideration paid | $ 186,806 |
Business Acquisition - Pro Form
Business Acquisition - Pro Forma Information (Details) - Radius Bancorp, Inc $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Total net revenue | $ 825,701 |
Net income | $ 11,644 |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Total net revenue | $ 864,619 | $ 1,187,216 | $ 818,630 |
Radius Bancorp, Inc | |||
Business Acquisition [Line Items] | |||
Total net revenue | $ 73,600 |
Marketplace Revenue - Component
Marketplace Revenue - Components of Marketplace Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Gain on sales of loans | $ 47,839 | $ 95,335 | $ 70,116 |
Net fair value adjustments | (134,114) | 8,503 | 3,986 |
Total marketplace revenue | 291,484 | 683,626 | 578,580 |
Origination fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 279,146 | 499,179 | 416,839 |
Servicing fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 98,613 | $ 80,609 | $ 87,639 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Basic EPS: | ||||
Net income attributable to stockholders, basic | $ 38,939 | $ 289,685 | ||
Diluted EPS: | ||||
Net income attributable to stockholders, diluted | $ 38,939 | $ 289,685 | ||
Common Stock | ||||
Basic EPS: | ||||
Net income attributable to stockholders, basic | $ 18,456 | |||
Weighted-average common shares - Basic (shares) | [1] | 108,466,179 | 103,547,305 | 97,486,754 |
Basic EPS ($ per share) | [1] | $ 0.36 | $ 2.80 | $ 0.19 |
Diluted EPS: | ||||
Net income attributable to stockholders, diluted | $ 18,580 | |||
Weighted-average common shares - Diluted (shares) | [1] | 108,468,857 | 104,001,288 | 102,147,353 |
Diluted EPS ($ per share) | [1] | $ 0.36 | $ 2.79 | $ 0.18 |
Preferred Stock | ||||
Basic EPS: | ||||
Net income attributable to stockholders, basic | $ 124 | |||
Weighted-average common shares - Basic (shares) | [1] | 0 | 0 | 653,118 |
Basic EPS ($ per share) | [1] | $ 0 | $ 0 | $ 0.19 |
Diluted EPS: | ||||
Net income attributable to stockholders, diluted | $ 0 | |||
Weighted-average common shares - Diluted (shares) | [1] | 0 | 0 | 0 |
Diluted EPS ($ per share) | [1] | $ 0 | $ 0 | $ 0 |
[1]See “ Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | 1 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Preferred stock, outstanding (shares) | 0 | |
Series A Preferred Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Preferred stock, par value ($ per share) | $ 0.01 | |
Largest Stockholder | Series A Preferred Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Conversion of stock, shares issued (in shares) | 195,628 |
Securities Available for Sale -
Securities Available for Sale - Amortized cost/fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,663,990 | $ 399,668 |
Gross Unrealized Gains | 13,896 | 9,424 |
Gross Unrealized Losses | (57,624) | (63,390) |
Fair Value | 1,620,262 | 345,702 |
Asset Pledged as Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 359,500 | 319,000 |
Senior asset-backed securities related to Structured Program transactions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,165,513 | |
Gross Unrealized Gains | 10,932 | |
Gross Unrealized Losses | (42) | |
Fair Value | 1,176,403 | |
U.S. agency residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 261,885 | 255,675 |
Gross Unrealized Gains | 208 | 0 |
Gross Unrealized Losses | (37,497) | (41,248) |
Fair Value | 224,596 | 214,427 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 93,452 | 90,447 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (13,348) | (16,053) |
Fair Value | 80,104 | 74,394 |
Other asset-backed securities related to Structured Program transactions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 70,662 | |
Gross Unrealized Gains | 2,731 | |
Gross Unrealized Losses | 0 | |
Fair Value | 73,393 | |
Restricted investments | 70,100 | |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 42,511 | 26,988 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5,435) | (4,470) |
Fair Value | 37,076 | 22,518 |
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 | 26,710 | 14,959 |
Gross Unrealized Gains | 25 | 29 |
Gross Unrealized Losses | (634) | (785) |
Fair Value | 26,101 | 14,203 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,257 | 3,277 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (668) | (834) |
Fair Value | $ 2,589 | $ 2,443 |
Securities Available for Sale_2
Securities Available for Sale - Continuous loss (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | $ 71,740 | $ 168,722 |
Unrealized losses, less than 12 months | (981) | (23,346) |
Fair value, 12 months or longer | 315,760 | 156,091 |
Unrealized losses, 12 months or longer | (56,643) | (40,044) |
Fair Value | 387,500 | 324,813 |
Unrealized Losses | (57,624) | (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 | 38,359 | |
Unrealized losses, less than 12 months | (42) | |
Fair value, 12 months or longer | 0 | |
Unrealized losses, 12 months or longer | 0 | |
Fair Value | 38,359 | |
Unrealized Losses | (42) | |
U.S. agency residential mortgage-backed securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | 6,497 | 111,843 |
Unrealized losses, less than 12 months | (149) | (15,831) |
Fair value, 12 months or longer | 201,426 | 102,584 |
Unrealized losses, 12 months or longer | (37,348) | (25,417) |
Fair Value | 207,923 | 214,427 |
Unrealized Losses | (37,497) | (41,248) |
U.S. agency securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | 0 | 50,352 |
Unrealized losses, less than 12 months | 0 | (7,213) |
Fair value, 12 months or longer | 80,104 | 24,042 |
Unrealized losses, 12 months or longer | (13,348) | (8,840) |
Fair Value | 80,104 | 74,394 |
Unrealized Losses | (13,348) | (16,053) |
Mortgage-backed securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | 13,973 | 2,441 |
Unrealized losses, less than 12 months | (740) | (229) |
Fair value, 12 months or longer | 23,103 | 20,077 |
Unrealized losses, 12 months or longer | (4,695) | (4,241) |
Fair Value | 37,076 | 22,518 |
Unrealized Losses | (5,435) | (4,470) |
Other asset-backed securities | ||
Schedule of Securities Available-for-Sale [Line Items] | ||
Fair value, less than 12 months | 12,911 | 4,086 |
Unrealized losses, less than 12 months | (50) | (73) |
Fair value, 12 months or longer | 8,538 | 6,945 |
Unrealized losses, 12 months or longer | (584) | (712) |
Fair Value | 21,449 | 11,031 |
Unrealized Losses | (634) | (785) |
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 | 2,589 | 2,443 |
Unrealized losses, 12 months or longer | (668) | (834) |
Fair Value | 2,589 | 2,443 |
Unrealized Losses | $ (668) | $ (834) |
Securities Available for Sale_3
Securities Available for Sale - Allowance for Credit Losses (Details) - Asset-backed securities related to Structured Program transactions $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | $ (18,736) |
Reversal of credit loss expense | 3,382 |
Reversal of allowance arising from PCD financial assets | 15,354 |
Balance at end of period | $ 0 |
Securities Available for Sale_4
Securities Available for Sale - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Amortized cost, after 1 year through 5 years | $ 1,247,513 | |
Amortized cost, due after 5 years through 10 years | 41,080 | |
Amortized cost, due after 10 years | 375,397 | |
Amortized Cost | 1,663,990 | $ 399,668 |
Fair Value | ||
Fair value, after 1 year through 5 years | 1,260,703 | |
Fair value, due after 5 years through 10 years | 39,133 | |
Fair value, due after 10 years | 320,426 | |
Fair Value | $ 1,620,262 | 345,702 |
Weighted-average yield, due after 1 year through 5 years | 7.57% | |
Weighted-average yield, due after 5 years through 10 years | 2.36% | |
Weighted-average yield, due after 10 years | 2.91% | |
Weighted-average yield | 5.10% | |
Senior asset-backed securities related to Structured Program transactions | ||
Amortized Cost | ||
Amortized cost, after 1 year through 5 years | $ 1,165,513 | |
Amortized Cost | 1,165,513 | |
Fair Value | ||
Fair value, after 1 year through 5 years | 1,176,403 | |
Fair Value | 1,176,403 | |
Other asset-backed securities related to Structured Program transactions | ||
Amortized Cost | ||
Amortized cost, after 1 year through 5 years | 70,662 | |
Amortized Cost | 70,662 | |
Fair Value | ||
Fair value, after 1 year through 5 years | 73,393 | |
Fair Value | 73,393 | |
U.S. agency securities | ||
Amortized Cost | ||
Amortized cost, 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 | 65,604 | |
Amortized Cost | 93,452 | 90,447 |
Fair Value | ||
Fair value, after 1 year through 5 years | 8,746 | |
Fair value, due after 5 years through 10 years | 17,545 | |
Fair value, due after 10 years | 53,813 | |
Fair Value | 80,104 | 74,394 |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost, after 1 year through 5 years | 1,760 | |
Amortized cost, due after 5 years through 10 years | 2,024 | |
Amortized cost, due after 10 years | 38,727 | |
Amortized Cost | 42,511 | 26,988 |
Fair Value | ||
Fair value, after 1 year through 5 years | 1,596 | |
Fair value, due after 5 years through 10 years | 1,713 | |
Fair value, due after 10 years | 33,767 | |
Fair Value | 37,076 | 22,518 |
Other asset-backed securities | ||
Amortized Cost | ||
Amortized cost, after 1 year through 5 years | 421 | |
Amortized cost, due after 5 years through 10 years | 14,873 | |
Amortized cost, due after 10 years | 11,416 | |
Amortized Cost | 26,710 | 14,959 |
Fair Value | ||
Fair value, after 1 year through 5 years | 423 | |
Fair value, due after 5 years through 10 years | 14,842 | |
Fair value, due after 10 years | 10,836 | |
Fair Value | 26,101 | 14,203 |
Municipal securities | ||
Amortized Cost | ||
Amortized cost, after 1 year through 5 years | 154 | |
Amortized cost, due after 5 years through 10 years | 466 | |
Amortized cost, due after 10 years | 2,637 | |
Amortized Cost | 3,257 | 3,277 |
Fair Value | ||
Fair value, after 1 year through 5 years | 139 | |
Fair value, due after 5 years through 10 years | 410 | |
Fair value, due after 10 years | 2,040 | |
Fair Value | 2,589 | 2,443 |
U.S. agency residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost, after 1 year through 5 years | 3 | |
Amortized cost, due after 5 years through 10 years | 4,869 | |
Amortized cost, due after 10 years | 257,013 | |
Fair Value | ||
Fair value, after 1 year through 5 years | 3 | |
Fair value, due after 5 years through 10 years | 4,623 | |
Fair value, due after 10 years | 219,970 | |
Fair Value | $ 224,596 | $ 214,427 |
Securities Available for Sale_5
Securities Available for Sale - Proceeds and Gross Realized Gains and Losses from Sales of Other Securities Available for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 0 | $ 0 | $ 106,192 |
Gross realized gains | 708 | ||
Gross realized losses | $ (952) |
Loans and Leases Held for Inv_3
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance For Loan and Lease Losses - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Term Loans and Leases by Origination Year | ||
Accrued interest receivable, location | Other assets | Other assets |
Accrued interest | $ 32.2 | $ 27.9 |
Combination – Interest Payment Reduction and Term Extension | ||
Term Loans and Leases by Origination Year | ||
Combination and settlement loan modification | 0.5 | |
Debt Settlement | ||
Term Loans and Leases by Origination Year | ||
Combination and settlement loan modification | $ 53.1 |
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 (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | $ 4,850,302 | $ 5,033,154 | ||
Allowance for loan and lease losses | (310,387) | (327,852) | $ (144,389) | $ 0 |
Loans and leases held for investment, net | 4,539,915 | 4,705,302 | ||
Charged-off | 310,387 | 327,852 | 144,389 | 0 |
Loans pledged as collateral under the FRB discount window | $ 3,500,000 | $ 283,600 | ||
Allowance ratios | 6.40% | 6.50% | ||
Allowance for future estimated net charge-offs | $ 355,800 | $ 340,400 | ||
Negative allowance for expected recoveries of amounts previously charged-off | 45,400 | 12,500 | ||
Asset Pledged as Collateral | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment, net | 479,000 | 156,200 | ||
Consumer Portfolio Segment | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 4,159,919 | 4,260,608 | ||
Allowance for loan and lease losses | (298,061) | (312,489) | (128,812) | 0 |
Loans and leases held for investment, net | 3,861,858 | 3,948,119 | ||
Charged-off | $ 298,061 | $ 312,489 | 128,812 | 0 |
Allowance ratios | 7.20% | 7.30% | ||
Consumer Portfolio Segment | Unsecured personal | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | $ 3,726,830 | $ 3,866,373 | ||
Consumer Portfolio Segment | Residential mortgages | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 183,050 | 199,601 | ||
Consumer Portfolio Segment | Secured consumer | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 250,039 | 194,634 | ||
Commercial Portfolio Segment | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 690,383 | 772,546 | ||
Allowance for loan and lease losses | (12,326) | (15,363) | (15,577) | 0 |
Loans and leases held for investment, net | 678,057 | 757,183 | ||
Charged-off | $ 12,326 | $ 15,363 | $ 15,577 | $ 0 |
Allowance ratios | 1.80% | 2% | ||
Commercial Portfolio Segment | Equipment finance | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | $ 110,992 | $ 160,319 | ||
Commercial Portfolio Segment | Commercial real estate | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 380,322 | 373,501 | ||
Commercial Portfolio Segment | Commercial and industrial | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 199,069 | 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 | $ 6,400 | $ 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning of period | $ 327,852 | $ 144,389 | $ 0 |
Credit loss expense for loans and leases held for investment | 243,570 | 266,679 | 140,951 |
Initial allowance for PCD loans acquired during the period | 0 | 0 | 12,440 |
Charge-offs | (281,107) | (87,473) | (10,452) |
Recoveries | 20,072 | 4,257 | 1,450 |
Allowance for loan and lease losses, end of period | 310,387 | 327,852 | 144,389 |
Radius Bancorp, Inc | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Credit loss expense for loans and leases held for investment | 6,900 | ||
Unfunded Loan Commitment | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Reserve for unfunded lending commitments, beginning of period | 1,878 | 1,231 | 0 |
Credit loss expense for unfunded lending commitments | (5) | 647 | 1,231 |
Reserve for unfunded lending commitments, end of period | 1,873 | 1,878 | 1,231 |
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 | 110,800 | |
Reserve for unfunded lending commitments, end of period | 78,100 | 138,000 | 110,800 |
Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning of period | 312,489 | 128,812 | 0 |
Credit loss expense for loans and leases held for investment | 244,518 | 265,359 | 136,789 |
Initial allowance for PCD loans acquired during the period | 0 | 0 | 603 |
Charge-offs | (278,105) | (85,247) | (8,789) |
Recoveries | 19,159 | 3,565 | 209 |
Allowance for loan and lease losses, end of period | 298,061 | 312,489 | 128,812 |
Consumer Portfolio Segment | Unfunded Loan Commitment | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Reserve for unfunded lending commitments, beginning of period | 18 | 0 | 0 |
Credit loss expense for unfunded lending commitments | (18) | 18 | 0 |
Reserve for unfunded lending commitments, end of period | 0 | 18 | 0 |
Commercial Portfolio Segment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning of period | 15,363 | 15,577 | 0 |
Credit loss expense for loans and leases held for investment | (948) | 1,320 | 4,162 |
Initial allowance for PCD loans acquired during the period | 0 | 0 | 11,837 |
Charge-offs | (3,002) | (2,226) | (1,663) |
Recoveries | 913 | 692 | 1,241 |
Allowance for loan and lease losses, end of period | 12,326 | 15,363 | 15,577 |
Commercial Portfolio Segment | Unfunded Loan Commitment | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Reserve for unfunded lending commitments, beginning of period | 1,860 | 1,231 | 0 |
Credit loss expense for unfunded lending commitments | 13 | 629 | 1,231 |
Reserve for unfunded lending commitments, end of period | $ 1,873 | $ 1,860 | $ 1,231 |
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) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Term Loans and Leases by Origination Year | |
Year 1 | $ 23,542 |
Year 2 | 159,735 |
Year 3 | 96,197 |
Year 4 | 82 |
Year 5 | 318 |
Prior | 1,233 |
Total | 281,107 |
Consumer Portfolio Segment | |
Term Loans and Leases by Origination Year | |
Year 1 | 23,542 |
Year 2 | 159,735 |
Year 3 | 94,828 |
Year 4 | 0 |
Year 5 | 0 |
Prior | 0 |
Total | 278,105 |
Consumer Portfolio Segment | Unsecured personal | |
Term Loans and Leases by Origination Year | |
Year 1 | 23,340 |
Year 2 | 157,502 |
Year 3 | 94,147 |
Year 4 | 0 |
Year 5 | 0 |
Prior | 0 |
Total | 274,989 |
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 | 202 |
Year 2 | 2,233 |
Year 3 | 681 |
Year 4 | 0 |
Year 5 | 0 |
Prior | 0 |
Total | 3,116 |
Commercial Portfolio Segment | |
Term Loans and Leases by Origination Year | |
Year 1 | 0 |
Year 2 | 0 |
Year 3 | 1,369 |
Year 4 | 82 |
Year 5 | 318 |
Prior | 1,233 |
Total | 3,002 |
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 | 82 |
Year 5 | 318 |
Prior | 1,233 |
Total | $ 3,002 |
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 | Dec. 31, 2023 | Dec. 31, 2022 |
Term Loans and Leases by Origination Year | ||
Total | $ 4,850,302 | $ 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) | 8,881 | |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | ||
Term Loans and Leases by Origination Year | ||
Year one | 1,648,591 | 3,064,021 |
Year two | 1,885,009 | 1,102,517 |
Year three | 535,309 | 31,465 |
Year four | 29,960 | 24,226 |
Year five | 22,708 | 4,546 |
Prior | 29,461 | 33,833 |
Total | 4,151,038 | 4,260,608 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year one | 1,522,462 | 2,861,207 |
Year two | 1,737,631 | 1,005,166 |
Year three | 457,856 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Total | 3,717,949 | 3,866,373 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year one | 53 | 49,721 |
Year two | 48,473 | 58,353 |
Year three | 54,855 | 31,465 |
Year four | 29,960 | 21,683 |
Year five | 20,248 | 4,546 |
Prior | 29,461 | 33,833 |
Total | 183,050 | 199,601 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year one | 126,076 | 153,093 |
Year two | 98,905 | 38,998 |
Year three | 22,598 | 0 |
Year four | 0 | 2,543 |
Year five | 2,460 | 0 |
Prior | 0 | 0 |
Total | 250,039 | 194,634 |
Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Year one | 92,648 | 220,905 |
Year two | 220,696 | 202,382 |
Year three | 118,301 | 111,040 |
Year four | 68,608 | 91,253 |
Year five | 74,370 | 57,687 |
Prior | 115,760 | 89,279 |
Total | 690,383 | 772,546 |
Commercial Portfolio Segment | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 167,982 | 189,756 |
Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Year one | 2,945 | 59,227 |
Year two | 48,665 | 40,312 |
Year three | 28,273 | 25,873 |
Year four | 14,075 | 19,544 |
Year five | 10,746 | 11,919 |
Prior | 6,288 | 3,444 |
Total | 110,992 | 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 one | 2,945 | 59,227 |
Year two | 33,430 | 38,218 |
Year three | 26,311 | 25,014 |
Year four | 7,754 | 15,785 |
Year five | 9,411 | 11,880 |
Prior | 6,288 | 3,444 |
Total | 86,139 | 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 one | 0 | 0 |
Year two | 15,235 | 2,094 |
Year three | 1,962 | 0 |
Year four | 5,873 | 3,759 |
Year five | 1,335 | 0 |
Prior | 0 | 0 |
Total | 24,405 | 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 one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 859 |
Year four | 448 | 0 |
Year five | 0 | 39 |
Prior | 0 | 0 |
Total | 448 | 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 one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 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 one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 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 one | 49,067 | 100,602 |
Year two | 97,845 | 53,445 |
Year three | 43,766 | 55,912 |
Year four | 43,058 | 53,737 |
Year five | 52,160 | 39,633 |
Prior | 94,426 | 70,172 |
Total | 380,322 | 373,501 |
Commercial Portfolio Segment | Commercial real estate | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 44,319 | 40,693 |
Commercial Portfolio Segment | Commercial real estate | Pass | ||
Term Loans and Leases by Origination Year | ||
Year one | 49,067 | 100,602 |
Year two | 94,247 | 53,445 |
Year three | 34,535 | 47,497 |
Year four | 43,058 | 52,834 |
Year five | 52,160 | 35,992 |
Prior | 78,062 | 60,976 |
Total | 351,129 | 351,346 |
Commercial Portfolio Segment | Commercial real estate | Pass | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 33,423 | 40,693 |
Commercial Portfolio Segment | Commercial real estate | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 8,415 |
Year four | 0 | 260 |
Year five | 0 | 1,237 |
Prior | 13,706 | 405 |
Total | 13,706 | 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 one | 0 | 0 |
Year two | 3,598 | 0 |
Year three | 7,716 | 0 |
Year four | 0 | 643 |
Year five | 0 | 2,404 |
Prior | 2,139 | 8,215 |
Total | 13,453 | 11,262 |
Commercial Portfolio Segment | Commercial real estate | Substandard | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 9,425 | 0 |
Commercial Portfolio Segment | Commercial real estate | Doubtful | ||
Term Loans and Leases by Origination Year | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 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 one | 0 | 0 |
Year two | 0 | 0 |
Year three | 1,515 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 519 | 576 |
Total | 2,034 | 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 one | 40,636 | 61,076 |
Year two | 74,186 | 108,625 |
Year three | 46,262 | 29,255 |
Year four | 11,475 | 17,972 |
Year five | 11,464 | 6,135 |
Prior | 15,046 | 15,663 |
Total | 199,069 | 238,726 |
Commercial Portfolio Segment | Commercial and industrial | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 123,663 | 149,063 |
Commercial Portfolio Segment | Commercial and industrial | Pass | ||
Term Loans and Leases by Origination Year | ||
Year one | 40,636 | 61,076 |
Year two | 60,352 | 99,264 |
Year three | 39,304 | 24,726 |
Year four | 9,525 | 13,866 |
Year five | 10,282 | 5,174 |
Prior | 11,626 | 10,831 |
Total | 171,725 | 214,937 |
Commercial Portfolio Segment | Commercial and industrial | Pass | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 104,928 | 141,858 |
Commercial Portfolio Segment | Commercial and industrial | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year one | 0 | 0 |
Year two | 10,881 | 0 |
Year three | 1,532 | 0 |
Year four | 729 | 483 |
Year five | 137 | 163 |
Prior | 444 | 455 |
Total | 13,723 | 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 | 9,384 | 44 |
Commercial Portfolio Segment | Commercial and industrial | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year one | 0 | 0 |
Year two | 2,304 | 9,361 |
Year three | 5,426 | 4,529 |
Year four | 673 | 3,623 |
Year five | 1,045 | 797 |
Prior | 1,434 | 2,820 |
Total | 10,882 | 21,130 |
Commercial Portfolio Segment | Commercial and industrial | Substandard | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 6,908 | 5,716 |
Commercial Portfolio Segment | Commercial and industrial | Doubtful | ||
Term Loans and Leases by Origination Year | ||
Year one | 0 | 0 |
Year two | 649 | 0 |
Year three | 0 | 0 |
Year four | 548 | 0 |
Year five | 0 | 0 |
Prior | 286 | 286 |
Total | 1,483 | 286 |
Commercial Portfolio Segment | Commercial and industrial | Doubtful | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 1,214 | 216 |
Commercial Portfolio Segment | Commercial and industrial | Loss | ||
Term Loans and Leases by Origination Year | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 1 |
Prior | 1,256 | 1,271 |
Total | 1,256 | 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 one | 1,498,737 | 2,835,460 |
Year two | 1,688,512 | 977,224 |
Year three | 438,296 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Total | 3,625,545 | 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 one | 53 | 49,721 |
Year two | 48,473 | 58,353 |
Year three | 54,855 | 31,465 |
Year four | 29,960 | 21,683 |
Year five | 18,917 | 4,546 |
Prior | 29,041 | 33,248 |
Total | 181,299 | 199,016 |
Current | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year one | 125,618 | 151,725 |
Year two | 97,084 | 38,076 |
Year three | 21,949 | 0 |
Year four | 0 | 2,543 |
Year five | 2,460 | 0 |
Prior | 0 | 0 |
Total | 247,111 | 192,344 |
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 one | 9,034 | 11,149 |
Year two | 17,017 | 9,867 |
Year three | 6,665 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Total | 32,716 | 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 one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 1,331 | 0 |
Prior | 420 | 0 |
Total | 1,751 | 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 one | 364 | 1,017 |
Year two | 1,295 | 703 |
Year three | 417 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Total | 2,076 | 1,720 |
30-59 days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 13,526 | 3,172 |
30-59 days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 1,265 | 3,172 |
30-59 days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
30-59 days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 12,261 | 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 one | 7,767 | 7,785 |
Year two | 15,538 | 8,633 |
Year three | 6,251 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Total | 29,556 | 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 one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 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 one | 94 | 235 |
Year two | 373 | 147 |
Year three | 168 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Total | 635 | 382 |
60-89 days past due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 5,198 | 102 |
60-89 days past due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
60-89 days past due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 3,566 | 102 |
60-89 days past due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 1,632 | 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 one | 6,924 | 6,813 |
Year two | 16,564 | 9,442 |
Year three | 6,644 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Total | 30,132 | 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 one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 331 |
Total | 0 | 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 one | 0 | 116 |
Year two | 153 | 72 |
Year three | 64 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Total | 217 | 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 |
Total Days Past Due | Commercial Portfolio Segment | ||
Term Loans and Leases by Origination Year | ||
Total | 21,857 | 5,776 |
Total Days Past Due | Commercial Portfolio Segment | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 1,265 | 4,031 |
Total Days Past Due | Commercial Portfolio Segment | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 5,184 | 102 |
Total Days Past Due | Commercial Portfolio Segment | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | $ 15,408 | $ 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 - Loan Modifications (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Combination – Interest Payment Reduction and Term Extension | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | $ 8,526 |
Percentage of total unsecured personal loans at amortized cost as of end of period | 0.20% |
Debt Settlement | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | $ 7,350 |
Percentage of total unsecured personal loans at amortized cost as of end of period | 0.20% |
Current | Combination – Interest Payment Reduction and Term Extension | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | $ 7,741 |
Current | Debt Settlement | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | 70 |
30-59 days past due | Combination – Interest Payment Reduction and Term Extension | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | 348 |
30-59 days past due | Debt Settlement | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | 85 |
60-89 days past due | Combination – Interest Payment Reduction and Term Extension | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | 172 |
60-89 days past due | Debt Settlement | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | 669 |
90 or more days past due | Combination – Interest Payment Reduction and Term Extension | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | 265 |
90 or more days past due | Debt Settlement | |
Financing Receivable, Modified [Line Items] | |
Total loan modifications | $ 6,526 |
Loans and Leases Held for Inv_9
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 | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 44,382 | $ 34,827 |
Nonaccrual with no related ACL | $ 4,089 | $ 2,617 |
Nonaccrual ratios | 0.90% | 0.70% |
Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 30,661 | $ 16,774 |
Nonaccrual with no related ACL | $ 312 | $ 331 |
Nonaccrual ratios | 0.70% | 0.40% |
Consumer Portfolio Segment | Unsecured personal | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 30,132 | $ 16,255 |
Nonaccrual with no related ACL | 0 | 0 |
Consumer Portfolio Segment | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 312 | 331 |
Nonaccrual with no related ACL | 312 | 331 |
Consumer Portfolio Segment | Secured consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 217 | 188 |
Nonaccrual with no related ACL | 0 | 0 |
Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 13,721 | 18,053 |
Nonaccrual with no related ACL | $ 3,777 | $ 2,286 |
Nonaccrual ratios | 2% | 2.30% |
Commercial Portfolio Segment | Loans guaranteed by the Small Business Association | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 10,400 | $ 4,900 |
Commercial Portfolio Segment | Equipment finance | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 898 |
Nonaccrual with no related ACL | 0 | 39 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 9,663 | 1,018 |
Nonaccrual with no related ACL | 2,187 | 1,018 |
Commercial Portfolio Segment | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 4,058 | 16,137 |
Nonaccrual with no related ACL | $ 1,590 | $ 1,229 |
Securitizations and Variable _3
Securitizations and Variable Interest Entities - Summary of Select Information Related to VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Restricted cash | [1] | $ 41,644 | $ 67,454 |
Total securities available for sale | 1,620,262 | 345,702 | |
Loans held for investment at fair value | 4,539,915 | 4,705,302 | |
Retail and certificate loans held for investment at fair value | [1] | 10,488 | 55,425 |
Other assets | [1] | 455,453 | 500,306 |
Liabilities | |||
Borrowings | [1] | 8,866 | 74,858 |
Retail notes and certificates | 10,488 | 55,425 | |
Other liabilities | [1] | 222,801 | 292,617 |
Total liabilities | 7,575,641 | 6,815,453 | |
Consolidated | |||
Assets | |||
Restricted cash | 3,454 | 8,048 | |
Total securities available for sale | 0 | 0 | |
Loans held for investment at fair value | 550 | 3,994 | |
Retail and certificate loans held for investment at fair value | 420 | 1,946 | |
Other assets | 14 | 206 | |
Total assets | 4,438 | 14,194 | |
Liabilities | |||
Borrowings | 2,468 | 8,085 | |
Retail notes and certificates | 420 | 1,946 | |
Other liabilities | 4 | 29 | |
Total liabilities | 2,892 | 10,060 | |
Total net assets (maximum loss exposure) | 1,546 | 4,134 | |
Unconsolidated | |||
Assets | |||
Restricted cash | 0 | 0 | |
Total securities available for sale | 1,249,796 | 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 | 31,531 | 10,464 | |
Total assets | 1,281,327 | 28,181 | |
Liabilities | |||
Borrowings | 0 | 0 | |
Retail notes and certificates | 0 | 0 | |
Other liabilities | 3,301 | 0 | |
Total liabilities | 3,301 | 0 | |
Total net assets (maximum loss exposure) | 1,278,026 | 28,181 | |
Total | |||
Assets | |||
Restricted cash | 3,454 | 8,048 | |
Total securities available for sale | 1,249,796 | 17,717 | |
Loans held for investment at fair value | 550 | 3,994 | |
Retail and certificate loans held for investment at fair value | 420 | 1,946 | |
Other assets | 31,545 | 10,670 | |
Total assets | 1,285,765 | 42,375 | |
Liabilities | |||
Borrowings | 2,468 | 8,085 | |
Retail notes and certificates | 420 | 1,946 | |
Other liabilities | 3,305 | 29 | |
Total liabilities | 6,193 | 10,060 | |
Total net assets (maximum loss exposure) | $ 1,279,572 | $ 32,315 | |
[1] Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Consolidated Financial Statements – Note 7. Securitizations and Variable Interest Entities.” |
Securitizations and Variable _4
Securitizations and Variable Interest Entities - Summary of Activity Related to Unconsolidated VIEs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair value of consideration received: | |||
Cash | $ 0 | $ 0 | $ 106,192 |
Unconsolidated | |||
Fair value of consideration received: | |||
Cash | 172,397 | 5,320 | 0 |
Asset-backed securities retained | 1,299,313 | 2,180 | 0 |
Other assets (liabilities) | 16,740 | (3,794) | 0 |
Total consideration | 1,488,450 | 3,706 | 0 |
Deconsolidation of debt | 0 | 36,072 | 0 |
Fair value of loans sold | (1,474,077) | (39,519) | 0 |
Gain on sales of loans | 14,373 | 259 | 0 |
Cash proceeds from continuing involvement: | |||
Servicing and other administrative fees | 5,475 | 8,618 | 23,586 |
Interest received on asset-backed securities retained | $ 22,786 | $ 7,285 | $ 9,136 |
Securitizations and Variable _5
Securitizations and Variable Interest Entities - Narrative (Details) - Off-balance Sheet Loans - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding principal balance | $ 1,600 | $ 433.5 |
Off-balance sheet loans, principal amount outstanding, 31 days or more past due | $ 9.5 | $ 14.9 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments, Assets and Liabilities Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Loans held for sale at fair value | $ 407,773 | $ 110,400 | |
Loans held for investment at fair value | 262,190 | 925,938 | |
Retail and certificate loans held for investment at fair value | [1] | 10,488 | 55,425 |
Securities available for sale: | |||
Total securities available for sale | 1,620,262 | 345,702 | |
Servicing assets | 77,680 | 84,308 | |
Other assets | 3,525 | 5,099 | |
Total assets | 2,381,918 | 1,526,872 | |
Liabilities | |||
Borrowings | 2,468 | 8,085 | |
Retail notes and certificates | 10,488 | 55,425 | |
Other liabilities | 19,727 | 8,583 | |
Total liabilities | 32,683 | 72,093 | |
Senior asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 1,176,403 | ||
U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 224,596 | 214,427 | |
U.S. agency securities | |||
Securities available for sale: | |||
Total securities available for sale | 80,104 | 74,394 | |
Other asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 73,393 | ||
Mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 37,076 | 22,518 | |
Asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 17,717 | ||
Other asset-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 26,101 | 14,203 | |
Municipal securities | |||
Securities available for sale: | |||
Total securities available for sale | 2,589 | 2,443 | |
Level 1 | |||
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 and certificates | 0 | 0 | |
Other liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 | Senior asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 1 | U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 1 | U.S. agency securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 1 | Other asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 1 | Mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 1 | Asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 1 | Other asset-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 1 | Municipal securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 2 | |||
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 | 370,466 | 333,233 | |
Servicing assets | 0 | 0 | |
Other assets | 3,525 | 0 | |
Total assets | 373,991 | 333,233 | |
Liabilities | |||
Borrowings | 0 | 0 | |
Retail notes and certificates | 0 | 0 | |
Other liabilities | 12,072 | 0 | |
Total liabilities | 12,072 | 0 | |
Level 2 | Senior asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 2 | U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 224,596 | 214,427 | |
Level 2 | U.S. agency securities | |||
Securities available for sale: | |||
Total securities available for sale | 80,104 | 74,394 | |
Level 2 | Other asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 0 | ||
Level 2 | Mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 37,076 | 22,518 | |
Level 2 | Asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 5,248 | ||
Level 2 | Other asset-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 26,101 | 14,203 | |
Level 2 | Municipal securities | |||
Securities available for sale: | |||
Total securities available for sale | 2,589 | 2,443 | |
Level 3 | |||
Assets | |||
Loans held for sale at fair value | 407,773 | 110,400 | |
Loans held for investment at fair value | 262,190 | 925,938 | |
Retail and certificate loans held for investment at fair value | 10,488 | 55,425 | |
Securities available for sale: | |||
Total securities available for sale | 1,249,796 | 12,469 | |
Servicing assets | 77,680 | 84,308 | |
Other assets | 0 | 5,099 | |
Total assets | 2,007,927 | 1,193,639 | |
Liabilities | |||
Borrowings | 2,468 | 8,085 | |
Retail notes and certificates | 10,488 | 55,425 | |
Other liabilities | 7,655 | 8,583 | |
Total liabilities | 20,611 | 72,093 | |
Level 3 | Senior asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 1,176,403 | ||
Level 3 | U.S. agency residential mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 3 | U.S. agency securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 3 | Other asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 73,393 | ||
Level 3 | Mortgage-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 3 | Asset-backed securities related to Structured Program transactions | |||
Securities available for sale: | |||
Total securities available for sale | 12,469 | ||
Level 3 | Other asset-backed securities | |||
Securities available for sale: | |||
Total securities available for sale | 0 | 0 | |
Level 3 | 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 Consolidated Financial Statements – Note 7. Securitizations and Variable Interest Entities.” |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans | ||
Fair value of loans held for sale | $ 407,773 | $ 110,400 |
Balance at Fair Value | ||
Loans | ||
Fair value of loans held for investment | 4,675,354 | 4,941,825 |
Other asset-backed securities related to Structured Program transactions | ||
Loans | ||
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized gain | 42 | |
Senior asset-backed securities related to Structured Program transactions | ||
Loans | ||
Beginning | 0 | |
Originations and purchases, and additions | 1,225,796 | |
Principal payments and cash received | (60,283) | |
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized gain | 10,890 | |
Ending | 1,176,403 | 0 |
Other asset-backed securities related to Structured Program transactions | ||
Loans | ||
Beginning | 12,469 | |
Originations and purchases, and additions | 73,516 | |
Principal payments and cash received | (12,634) | |
Ending | 73,393 | 12,469 |
Loans Held For Sale | ||
Loans | ||
Beginning | 110,400 | 142,370 |
Originations and purchases, and additions | 4,942,457 | 9,045,701 |
Sales | (4,634,155) | (9,039,892) |
Principal payments and cash received | (70,350) | (31,253) |
Transfers | 195,106 | (11,907) |
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized gain | (135,685) | 5,381 |
Ending | 407,773 | 110,400 |
Aggregate unpaid principal balance | 431,955 | 114,920 |
Cumulative fair value adjustments | (24,182) | (4,520) |
Fair value of loans held for sale | 407,773 | 110,400 |
Loans Held For Sale | 90 or more days past due | ||
Loans | ||
Aggregate unpaid principal balance | 1,395 | 188 |
Cumulative fair value adjustments | (1,102) | (153) |
Fair value of loans held for sale | 293 | 35 |
Loans Held For Sale | Fair Value, Measurements, Recurring | ||
Loans | ||
Fair value of loans held for sale | 407,773 | 110,400 |
Loans Held for Investment | ||
Loans | ||
Beginning | 925,938 | 21,240 |
Originations and purchases, and additions | 4,243 | 954,086 |
Principal payments and cash received | (485,043) | (74,393) |
Transfers | (195,106) | 22,294 |
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized gain | 12,158 | 2,711 |
Ending | 262,190 | 925,938 |
Loans Held for Investment | Balance at Fair Value | Fair Value, Measurements, Recurring | Off-balance Sheet Loans | ||
Loans | ||
Aggregate unpaid principal balance | 281,031 | 1,002,465 |
Cumulative fair value adjustments | (18,841) | (76,527) |
Fair value of loans held for investment | 262,190 | 925,938 |
Loans Held for Investment | Balance at Fair Value | Fair Value, Measurements, Recurring | Off-balance Sheet Loans | 90 or more days past due | ||
Loans | ||
Aggregate unpaid principal balance | 3,774 | 6,345 |
Cumulative fair value adjustments | (3,037) | (5,158) |
Fair value of loans held for investment | $ 737 | $ 1,187 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Level 3 | 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 | 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 | 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 rate | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, debt securities available-for-sale | 0.070 | ||
Discount rate | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, debt securities available-for-sale | 0.070 | ||
Discount rate | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, debt securities available-for-sale | 0.070 | ||
Discount rate | Level 3 | 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 | 0.081 | ||
Discount rate | Level 3 | Minimum | Loans Held For Sale | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 8.10% | 5% | |
Discount rate | Level 3 | Minimum | Loans Held for Investment | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 8.80% | 8.40% | |
Discount rate | Level 3 | Minimum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 8.70% | 7.50% | |
Discount rate | Level 3 | 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 | 0.103 | ||
Discount rate | Level 3 | Maximum | Loans Held For Sale | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 10.30% | 12.60% | |
Discount rate | Level 3 | Maximum | Loans Held for Investment | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 17.10% | 16.20% | |
Discount rate | Level 3 | Maximum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 17.30% | 16.40% | |
Discount rate | Level 3 | 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 | 0.090 | ||
Discount rate | Level 3 | Weighted- Average | Loans Held For Sale | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 9% | 9.10% | |
Discount rate | Level 3 | Weighted- Average | Loans Held for Investment | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 12.70% | 12.80% | |
Discount rate | Level 3 | Weighted- Average | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 11.30% | 10.10% | |
Annualized net charge-off rate | Level 3 | 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 | 0.049 | ||
Annualized net charge-off rate | Level 3 | Minimum | Loans Held For Sale | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 2.70% | 1.90% | |
Annualized net charge-off rate | Level 3 | Minimum | Loans Held for Investment | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 1.60% | 1.90% | |
Annualized net charge-off rate | Level 3 | Minimum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 1.90% | 1.30% | |
Annualized net charge-off rate | Level 3 | 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 | 0.059 | ||
Annualized net charge-off rate | Level 3 | Maximum | Loans Held For Sale | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 12.90% | 23.20% | |
Annualized net charge-off rate | Level 3 | Maximum | Loans Held for Investment | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 5.30% | 5.90% | |
Annualized net charge-off rate | Level 3 | Maximum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 24% | 23.70% | |
Annualized net charge-off rate | Level 3 | 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 | 0.055 | ||
Annualized net charge-off rate | Level 3 | Weighted- Average | Loans Held For Sale | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 6.50% | 11.60% | |
Annualized net charge-off rate | Level 3 | Weighted- Average | Loans Held for Investment | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 3.20% | 3.70% | |
Annualized net charge-off rate | Level 3 | Weighted- Average | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 8.70% | 9.30% | |
Annualized prepayment rate | Level 3 | 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 | 0.192 | ||
Annualized prepayment rate | Level 3 | Minimum | Loans Held For Sale | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 15.70% | 18.50% | |
Annualized prepayment rate | Level 3 | Minimum | Loans Held for Investment | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 19.50% | 18.60% | |
Annualized prepayment rate | Level 3 | Minimum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 15.60% | 16.30% | |
Annualized prepayment rate | Level 3 | 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 | 0.210 | ||
Annualized prepayment rate | Level 3 | Maximum | Loans Held For Sale | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 22.50% | 27.70% | |
Annualized prepayment rate | Level 3 | Maximum | Loans Held for Investment | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 31% | 27.70% | |
Annualized prepayment rate | Level 3 | Maximum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 25.70% | 30.90% | |
Annualized prepayment rate | Level 3 | 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 | 0.201 | ||
Annualized prepayment rate | Level 3 | Weighted- Average | Loans Held For Sale | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 19.90% | 22.90% | |
Annualized prepayment rate | Level 3 | Weighted- Average | Loans Held for Investment | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 24% | 22.60% | |
Annualized prepayment rate | Level 3 | Weighted- Average | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 20.30% | 24.40% |
Fair Value Measurements - Sensi
Fair Value Measurements - Sensitivity of Fair Value of Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale at fair value | $ 407,773 | $ 110,400 |
Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale at fair value | 407,773 | 110,400 |
Loans Held For Sale | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale at fair value | 407,773 | 110,400 |
Discount rates, impact of 100 basis point increase | (5,093) | (1,334) |
Discount rates, impact of 200 basis point increase | (10,051) | (2,643) |
Expected credit loss rates on underlying loans, 10% adverse change | (5,102) | (2,289) |
Expected credit loss rates on underlying loans, 20% adverse change | (10,184) | (4,505) |
Expected prepayment rates, 10% adverse change | (851) | (529) |
Expected prepayment rates, 20% adverse change | $ (1,628) | $ (1,008) |
Loans Held For Sale | Fair Value, Measurements, Recurring | Expected weighted-average life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected remaining weighted-average life (in years) | 1 year 6 months | 1 year 4 months 24 days |
Fair Value Measurements - Sen_2
Fair Value Measurements - Sensitivity Analysis of Loans Held for Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment at fair value | $ 262,190 | $ 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 | 262,190 | 925,938 |
Discount rates, impact of 100 basis point increase | (1,957) | (7,471) |
Discount rates, impact of 200 basis point increase | (3,888) | (14,830) |
Expected credit loss rates on underlying loans, 10% adverse change | (1,753) | (5,574) |
Expected credit loss rates on underlying loans, 20% adverse change | (3,595) | (11,307) |
Expected prepayment rates, 10% adverse change | (857) | (4,311) |
Expected prepayment rates, 20% adverse change | $ (1,675) | $ (7,480) |
Loans Held for Investment | Fair Value, Measurements, Recurring | Expected weighted-average life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected remaining weighted-average life (in years) | 10 months 24 days | 10 months 24 days |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 1,620,262 | $ 345,702 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 1,249,796 | $ 12,469 |
Discount rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.070 | |
Discount rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.070 | |
Discount rate | Weighted- Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.070 | |
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 | $ 1,176,403 | |
Effect of 100 basis point increase in discount rate | 18,000 | |
Effect of 200 basis point increase in discount rate | 36,000 | |
Senior asset-backed securities related to Structured Program transactions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 1,176,403 | |
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 remaining weighted-average life (in years) | 1 year 6 months |
Fair Value Measurements - Sen_3
Fair Value Measurements - Sensitivity Analysis of Debt Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Total securities available for sale | $ 1,620,262 | $ 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 | 73,393 | |
Discount rate | ||
100 basis point increase | (927) | |
200 basis point increase | (1,836) | |
Annualized net charge-off rate | ||
10% increase | (882) | |
20% increase | (1,771) | |
Annualized prepayment rate | ||
10% increase | (203) | |
20% increase | $ (430) | |
Other asset-backed securities related to Structured Program transactions | Weighted- Average | ||
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Expected remaining weighted-average life (in years) | 1 year 6 months |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Servicing Assets to Adverse Changes in Key Assumptions (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | $ 77,680 | $ 84,308 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | 77,680 | 84,308 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | 77,680 | 84,308 | $ 67,726 |
Fair Value, Measurements, Recurring | Level 3 | Servicing Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | $ 77,680 | $ 84,308 | |
Expected remaining weighted-average life (in years) | 1 year 2 months 12 days | 1 year 2 months 12 days | |
Discount rates, impact of 100 basis point increase | $ (675) | $ (726) | |
Discount rates, impact of 200 basis point increase | (1,349) | (1,451) | |
Cumulative credit loss on rates on underlying loans, 10% adverse change | (878) | (1,037) | |
Cumulative credit loss on rates on underlying loans, 20% adverse change | (1,756) | (2,074) | |
Cumulative prepayment rates, 10% adverse change | (1,550) | (1,994) | |
Cumulative prepayment rates, 20% adverse change | $ (3,100) | $ (3,989) |
Fair Value Measurements - Sen_4
Fair Value Measurements - Sensitivity of Fair Value of Loans Invested in by the Company, Asset-backed Securities Related to Structured Program Transactions and Servicing Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | $ 77,680 | $ 84,308 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | 77,680 | 84,308 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | 77,680 | 84,308 | $ 67,726 |
Servicing rate increase by .1% | 8,719 | 10,505 | |
Fair Value, Measurements, Recurring | Level 3 | Servicing Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets | 77,680 | 84,308 | |
Expected credit loss on rates on underlying loans, 10% adverse change | (878) | (1,037) | |
Expected credit loss on rates on underlying loans, 20% adverse change | (1,756) | (2,074) | |
Expected prepayment rates, 10% adverse change | (1,550) | (1,994) | |
Expected prepayment rates, 20% adverse change | (3,100) | (3,989) | |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Other than 10 or 20 Percent Adverse Change in Discount Rate, 100 Basis Point Increase | (675) | (726) | |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Other than 10 or 20 Percent Adverse Change in Discount Rate, 200 Basis Point Increase | $ (1,349) | $ (1,451) | |
Expected remaining weighted-average life (in years) | 1 year 2 months 12 days | 1 year 2 months 12 days |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information about Servicing Assets and Liabilities Measured Using Different Market Servicing Rates and Different Prepayment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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% | $ (8,719) | $ (10,505) |
Servicing rate decrease by .1% | $ 8,719 | $ 10,505 |
Fair Value Measurements - Add_2
Fair Value Measurements - Additional Information about Servicing Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Servicing Assets, Changes in fair value due to: | ||
Fair value at beginning of period | $ 84,308 | |
Fair value at end of period | 77,680 | $ 84,308 |
Fair Value, Measurements, Recurring | ||
Servicing Assets, Changes in fair value due to: | ||
Fair value at beginning of period | 84,308 | 67,726 |
Issuances | 56,032 | 93,352 |
Change in fair value, included in Marketplace Revenue | (62,581) | (73,229) |
Other net changes | (79) | (3,541) |
Fair value at end of period | $ 77,680 | $ 84,308 |
Fair Value Measurements - Not R
Fair Value Measurements - Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Other assets | $ 3,525 | $ 5,099 |
Total assets | 2,381,918 | 1,526,872 |
Liabilities | ||
Borrowings | 2,468 | 8,085 |
Other liabilities | 19,727 | 8,583 |
Total liabilities | 32,683 | 72,093 |
Level 1 | ||
Assets | ||
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Borrowings | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Assets | ||
Other assets | 3,525 | 0 |
Total assets | 373,991 | 333,233 |
Liabilities | ||
Borrowings | 0 | 0 |
Other liabilities | 12,072 | 0 |
Total liabilities | 12,072 | 0 |
Level 3 | ||
Assets | ||
Other assets | 0 | 5,099 |
Total assets | 2,007,927 | 1,193,639 |
Liabilities | ||
Borrowings | 2,468 | 8,085 |
Other liabilities | 7,655 | 8,583 |
Total liabilities | 20,611 | 72,093 |
Carrying Amount | ||
Assets | ||
Loans and leases held for investment, net | 4,539,915 | 4,705,302 |
Other assets | 37,605 | 36,646 |
Total assets | 4,577,520 | 4,741,948 |
Liabilities | ||
Deposits | 1,714,889 | 860,808 |
Borrowings | 6,398 | 66,773 |
Other liabilities | 59,015 | 62,247 |
Total liabilities | 1,780,302 | 989,828 |
Balance at Fair Value | ||
Assets | ||
Loans and leases held for investment, net | 4,675,354 | 4,941,825 |
Other assets | 37,901 | 36,697 |
Total assets | 4,713,255 | 4,978,522 |
Liabilities | ||
Deposits | 1,714,203 | 860,808 |
Borrowings | 6,398 | 66,773 |
Other liabilities | 59,015 | 62,247 |
Total liabilities | 1,779,616 | 989,828 |
Balance at Fair Value | Level 1 | ||
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 | ||
Assets | ||
Loans and leases held for investment, net | 0 | 0 |
Other assets | 36,884 | 35,300 |
Total assets | 36,884 | 35,300 |
Liabilities | ||
Deposits | 0 | 0 |
Borrowings | 0 | 2,619 |
Other liabilities | 36,823 | 30,311 |
Total liabilities | 36,823 | 32,930 |
Balance at Fair Value | Level 3 | ||
Assets | ||
Loans and leases held for investment, net | 4,675,354 | 4,941,825 |
Other assets | 1,017 | 1,397 |
Total assets | 4,676,371 | 4,943,222 |
Liabilities | ||
Deposits | 1,714,203 | 860,808 |
Borrowings | 6,398 | 64,154 |
Other liabilities | 22,192 | 31,936 |
Total liabilities | $ 1,742,793 | $ 956,898 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Credit Derivatives [Line Items] | |||
Maximum term of credit risk derivatives | 18 months | ||
Derivatives, location | Other liabilities | Other liabilities | Other liabilities |
Other Credit Derivatives | |||
Credit Derivatives [Line Items] | |||
Loss on derivative | $ 6.4 | ||
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 | $ 7.3 | $ 7.3 | 7.3 |
Credit derivatives at fair value | $ 6.4 | $ 6.4 | $ 6.4 |
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 | Dec. 31, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional | $ 1,500,000 |
Gross Derivative Liability Fair Value | $ (8,547) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule of Gains (Losses) Related to Fair Value Hedges (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedged item | $ 8,881 |
Fair Value Hedging | Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivatives used for hedging | (8,547) |
Interest settlement on derivative | 2,514 |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Total gains on fair value hedges | $ 2,848 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule of Fair Value Hedges (Details) $ in Thousands | Dec. 31, 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 Closed Portfolio | 3,109,854 |
Cumulative Fair Value Adjustment to Hedged Item | $ 8,881 |
Property, Equipment and Softw_3
Property, Equipment and Software, Net - Summary of Property, Equipment and Software (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Software | $ 209,260 | $ 174,360 |
Leasehold improvements | 30,764 | 31,214 |
Computer equipment | 21,654 | 27,410 |
Furniture and fixtures | 5,845 | 6,088 |
Total property, equipment and software | 267,523 | 239,072 |
Accumulated depreciation and amortization | (106,006) | (102,599) |
Total property, equipment and software, net | 161,517 | 136,473 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 66,900 | 43,700 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | $ 4,600 | $ 3,000 |
Property, Equipment and Softw_4
Property, Equipment and Software, Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 47,195 | $ 43,831 | $ 44,285 |
Property, Equipment and Software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 43,000 | $ 39,000 | $ 38,200 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 75,717,000 | $ 75,717,000 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 75,717,000 | 75,717,000 | |
Goodwill impairment expense | 0 | 0 | $ 0 |
Amortization expense | 4,200,000 | 4,800,000 | 5,200,000 |
Impairment of intangible assets | $ 0 | $ 0 | $ 0 |
Customer Relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, amortized period | 10 years | ||
Customer Relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, amortized period | 14 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 12,135 | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 54,500 | $ 54,500 |
Accumulated amortization | (42,365) | (38,166) |
Total | $ 12,135 | $ 16,334 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Expected Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 3,549 |
2025 | 2,901 |
2026 | 2,252 |
2027 | 1,603 |
2028 | 945 |
Thereafter | 885 |
Total | $ 12,135 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deferred tax assets, net | $ 151,411 | $ 173,687 | |
Servicing assets | 78,401 | 85,654 | |
Nonmarketable equity investments | 42,891 | 38,320 | |
Accrued interest receivable | 35,793 | 30,901 | |
Operating lease assets | 26,611 | 63,872 | |
Intangible assets, net | 12,135 | 16,334 | |
Other | 108,211 | 91,538 | |
Total other assets | [1] | 455,453 | 500,306 |
Principal balance of underlying loan servicing rights | $ 9,500,000 | $ 11,000,000 | |
[1] Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Consolidated Financial Statements – Note 7. Securitizations and Variable Interest Entities.” |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Interest-bearing deposits: | ||
Savings and money market accounts | $ 4,349,239 | $ 3,616,657 |
Certificates of deposit | 1,714,889 | 860,808 |
Checking accounts | 937,552 | 1,681,095 |
Total | 7,001,680 | 6,158,560 |
Noninterest-bearing deposits | 331,806 | 233,993 |
Total deposits | $ 7,333,486 | $ 6,392,553 |
Deposits - Maturity Schedule (D
Deposits - Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
2024 | $ 1,559,553 | |
2025 | 142,515 | |
2026 | 1,593 | |
2027 | 9,226 | |
2028 | 2,002 | |
Total certificates of deposit | $ 1,714,889 | $ 860,808 |
Deposits - Summary of Certifica
Deposits - Summary of Certificates of Deposit Above FDIC Limit (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Other Liabilities Disclosure [Abstract] | |
Three months or less | $ 5,673 |
Over 3 months through 6 months | 8,139 |
Over 6 months through 12 months | 132,912 |
Over 12 months | 3,403 |
Total | $ 150,127 |
Borrowings - Short-term Borrowi
Borrowings - Short-term Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Reserve Bank Borrowings | ||
Short-Term Debt [Line Items] | ||
Pledged collateral | $ 6.4 | $ 6.4 |
Federal Home Loan Bank Advances | ||
Short-Term Debt [Line Items] | ||
Pledged collateral | 754 | 754 |
Repurchase agreements | ||
Short-Term Debt [Line Items] | ||
Borrowings | 0 | 2.6 |
Federal Reserve Bank Borrowings | ||
Short-Term Debt [Line Items] | ||
Available borrowing capacity | 3,500 | 3,500 |
Federal Home Loan Bank Advances | ||
Short-Term Debt [Line Items] | ||
Available borrowing capacity | $ 605.5 | $ 605.5 |
Borrowings - Long-Term Debt (De
Borrowings - Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated | Payables to Securitization Holders | ||
Debt Instrument [Line Items] | ||
Restricted cash | $ 3,400 | $ 5,700 |
PPPLF | ||
Debt Instrument [Line Items] | ||
Interest rates | 0.35% | |
Aggregate debt outstanding | $ 6,398 | 64,154 |
Retail notes, certificates and secured borrowings | ||
Debt Instrument [Line Items] | ||
Aggregate debt outstanding | 10,488 | 55,425 |
Payable on Structured Program borrowings | ||
Debt Instrument [Line Items] | ||
Aggregate debt outstanding | 2,468 | 8,085 |
PPPLF | ||
Debt Instrument [Line Items] | ||
Financial instruments, owned, at fair value | 6,392 | 66,971 |
Payable on Structured Program borrowings | ||
Debt Instrument [Line Items] | ||
Financial instruments, owned, at fair value | 3,930 | 9,708 |
Other long-term debt | Consolidated | Loans Held for Investment and Loans Held for Sale | Payables to Securitization Holders | ||
Debt Instrument [Line Items] | ||
Financial instruments, owned, at fair value | $ 500 | $ 4,000 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Accounts payable and accrued expenses | $ 54,619 | $ 98,173 | |
Operating lease liabilities | 37,869 | 77,291 | |
Payable to investors | 36,823 | 30,311 | |
Other | 93,490 | 86,842 | |
Total other liabilities | [1] | $ 222,801 | $ 292,617 |
[1] Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Consolidated Financial Statements – Note 7. Securitizations and Variable Interest Entities.” |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Comprehensive income/loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive Income (loss), before tax | $ 10,238 | $ (61,326) | $ 5,562 |
Income tax effect | (2,926) | 16,664 | 0 |
Other comprehensive income (loss), net of tax | 7,312 | (44,662) | 5,562 |
Other comprehensive income (loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive Income (loss), before tax | 10,238 | (61,326) | 5,562 |
Income tax effect | (2,926) | 16,664 | 0 |
Other comprehensive income (loss), net of tax | 7,312 | (44,662) | 5,562 |
Change in net unrealized gain on securities available for sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive Income (loss), before tax | 10,238 | (61,326) | 5,562 |
Income tax effect | (2,926) | 16,664 | 0 |
Other comprehensive income (loss), net of tax | $ 7,312 | $ (44,662) | $ 5,562 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Accumulated other comprehensive income/loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balances | $ 1,164,294 | $ 850,242 | $ 724,171 |
Net unrealized gain (loss) on securities available for sale | 7,312 | (44,662) | 5,562 |
Ending balances | 1,251,822 | 1,164,294 | 850,242 |
Change in net unrealized gain on securities available for sale | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balances | (37,616) | 7,046 | |
Net unrealized gain (loss) on securities available for sale | 7,312 | (44,662) | 5,562 |
Ending balances | $ (30,304) | $ (37,616) | $ 7,046 |
Employee Incentive Plans - Sche
Employee Incentive Plans - Schedule of Stock Reserved for Future Issuance (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total reserved for future issuance (shares) | 39,554,301 | 35,453,074 |
Restricted Stock Units, Performance-based Restricted Stock Units, Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Available for grant (shares) | 22,732,012 | 17,473,925 |
Unvested RSUs, PBRSUs and stock options outstanding (shares) | 9,338,246 | 11,676,962 |
Available for ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Available for grant (shares) | 7,484,043 | 6,302,187 |
Employee Incentive Plans - Sc_2
Employee Incentive Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, gross | $ 61,619 | $ 74,380 | $ 71,534 |
Less: Capitalized stock-based compensation expense | 9,230 | 8,018 | 4,383 |
Stock-based compensation expense, net | 52,389 | 66,362 | 67,151 |
RSUs and PBRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, gross | 61,619 | 74,334 | 70,935 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense, gross | $ 0 | $ 46 | $ 599 |
Employee Incentive Plans - RSU
Employee Incentive Plans - RSU and PBRSU Activity and Weighted Average Grant Date Fair Value table (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
RSUs | |
Number of Units | |
Unvested, beginning (shares) | shares | 8,672,626 |
Granted (shares) | shares | 7,138,085 |
Vested (shares) | shares | (5,575,341) |
Forfeited/expired (shares) | shares | (3,235,539) |
Unvested, ending (shares) | shares | 6,999,831 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning ($ per share) | $ / shares | $ 12.94 |
Granted ($ per share) | $ / shares | 7.57 |
Vested ($ per share) | $ / shares | 11.44 |
Forfeited/expired ($ per share) | $ / shares | 11.28 |
Unvested, ending ($ per share) | $ / shares | $ 9.42 |
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 | (221,818) |
Unvested, ending (shares) | shares | 1,469,813 |
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 | 12.37 |
Unvested, ending ($ per share) | $ / shares | $ 12.60 |
Employee Incentive Plans - Narr
Employee Incentive Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 0.1 | $ 1.7 | $ 5.1 |
Total fair value of stock options vested | $ 0.3 | $ 0.3 | |
Options granted (shares) | 0 | 0 | 0 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 7,138,085 | ||
Granted, aggregate fair value | $ 54 | ||
Unrecognized compensation cost related to unvested awards | $ 59.4 | ||
Unrecognized compensation cost, period for recognition | 1 year 9 months 18 days | ||
PBRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (shares) | 807,499 | ||
Granted, aggregate fair value | $ 5.8 | ||
Unrecognized compensation cost related to unvested awards | $ 5.9 | ||
Unrecognized compensation cost, period for recognition | 1 year 4 months 24 days | ||
Performance period | 3 years |
Employee Incentive Plans - Opti
Employee Incentive Plans - Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 29, 2023 | |
Number of Options | ||
Outstanding at beginning of period (shares) | 1,249,451 | |
Exercised (shares) | (35,473) | |
Forfeited/Expired (shares) | (345,376) | |
Outstanding at end of period (shares) | 868,602 | |
Options exercisable (shares) | 868,602 | |
Weighted- Average Exercise Price Per Share | ||
Outstanding at beginning of period ($ per share) | $ 37.11 | |
Exercised ($ per share) | 5.30 | |
Forfeited/Expired ($ per share) | 35.57 | |
Outstanding at end of period ($ per share) | 39.02 | |
Options exercisable ($ per share) | $ 39.02 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted-average remaining contractual life of options outstanding | 1 year 2 months 12 days | |
Weighted-average remaining contractual life of options exercisable | 1 year 2 months 12 days | |
Aggregate intrinsic value of options outstanding | $ 15,000 | |
Aggregate intrinsic value of options exercisable | $ 15,000 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Stock price ($ per share) | $ 8.74 |
Income Taxes - Components of ta
Income Taxes - Components of tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ (3,180) | $ 0 | $ 0 |
State | 5,060 | (20,812) | (3,541) |
Total current tax benefit (expense) | 1,880 | (20,812) | (3,541) |
Deferred: | |||
Federal | (11,427) | 121,520 | 2,066 |
State | (6,131) | 35,940 | 1,611 |
Total deferred benefit (expense) | (17,558) | 157,460 | 3,677 |
Income tax benefit (expense) | $ (15,678) | $ 136,648 | $ 136 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax Credit Carryforward [Line Items] | |||
Income tax benefit (expense) | $ 15,678 | $ (136,648) | $ (136) |
Release of valuation allowance | 175,600 | ||
Release of valuation allowance, due to reassessment of realizability of deferred tax assets | 143,500 | ||
Valuation allowance | 46,108 | 47,721 | |
Amount of unrecognized tax benefits, if recognized, would impact the effective tax rate | 19,500 | ||
Accrued interest and penalties related to unrecognized tax benefits | 400 | $ 200 | |
Federal | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforward | 88,800 | ||
Operating loss carryforwards, not subject to expiration | 88,800 | ||
Federal | Research and Development | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards | 31,800 | ||
State and Local Jurisdiction | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforward | 534,500 | ||
Operating loss carryforwards, not subject to expiration | 28,900 | ||
State and Local Jurisdiction | Research and Development | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards | $ 24,900 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount | |||
Statutory federal tax expense | $ (11,470) | $ (32,140) | $ (3,873) |
State tax, net of federal tax benefit | (903) | 11,951 | (1,524) |
Stock-based compensation tax benefit (expense) | (4,392) | 271 | 11,839 |
Research and development tax credits | 4,600 | 10,907 | 4,354 |
Change in valuation allowance | 0 | 154,081 | (7,867) |
Change in unrecognized tax benefit | (1,380) | (3,438) | (2,177) |
Non-deductible expenses | (2,351) | (4,737) | (742) |
Other | 218 | (247) | 126 |
Income tax benefit (expense) | $ (15,678) | $ 136,648 | $ 136 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 60,432 | $ 64,288 |
Allowance for loan and lease losses | 84,119 | 89,718 |
Stock-based compensation | 7,399 | 10,121 |
Unrealized loss on AFS securities | 12,484 | 17,214 |
Deferred compensation | 6,574 | 12,690 |
Reserves and accruals | 12,651 | 13,474 |
Operating lease liabilities | 10,185 | 20,999 |
Goodwill | 10,203 | 12,267 |
Tax credit carryforwards | 27,924 | 26,913 |
Other | 3,926 | 4,249 |
Gross deferred tax assets | 235,897 | 271,933 |
Valuation allowance | (46,108) | (47,721) |
Total deferred tax assets | 189,789 | 224,212 |
Deferred tax liabilities: | ||
Internally developed software | (9,934) | (11,687) |
Servicing assets | (2,171) | (2,634) |
Operating lease assets | (7,157) | (17,353) |
Leases | (13,121) | (15,694) |
Other | (5,995) | (3,157) |
Total deferred tax liabilities | (38,378) | (50,525) |
Deferred tax assets, net | $ 151,411 | $ 173,687 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 27,850 | $ 22,512 | $ 17,626 |
Gross increase for tax positions related to prior years | (161) | 2,488 | 1,272 |
Gross increase for tax positions related to the current year | 2,373 | 2,850 | 3,614 |
Ending balance | $ 30,062 | $ 27,850 | $ 22,512 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Sales-type lease, interest income | $ 8.9 | $ 10.2 | $ 10.8 |
Lease renewal term | 15 years | ||
Security deposit | $ 0.4 | ||
Letters of credit outstanding, amount | $ 1.1 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 2 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 5 years |
Leases - Components of Equipmen
Leases - Components of Equipment Finance Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Lease receivables | $ 92,546 | $ 137,969 |
Unguaranteed residual asset values | 28,913 | 39,262 |
Unearned income | (11,072) | (17,786) |
Deferred fees | 605 | 874 |
Total | $ 110,992 | $ 160,319 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Receivable (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 38,583 |
2025 | 27,289 |
2026 | 16,411 |
2027 | 7,845 |
2028 | 4,053 |
Thereafter | 1,545 |
Total lease payments | 95,726 |
Discount effect | (3,180) |
Present value of future minimum lease payments | $ 92,546 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease assets | $ 26,611 | $ 63,872 |
Operating lease liabilities | $ 37,869 | $ 77,291 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Leases - Net Lease Costs (Detai
Leases - Net Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Net lease costs | $ (11,963) | $ (12,342) | $ (12,624) |
Occupancy | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | (11,963) | (15,189) | (18,773) |
Other non-interest income | |||
Lessee, Lease, Description [Line Items] | |||
Sublease revenue | $ 0 | $ 2,847 | $ 6,149 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities | $ (29,745) | $ (3,650) | $ 12,914 |
Leases - Future Operating Lease
Leases - Future Operating Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Lease Payments | ||
2024 | $ 12,798 | |
2025 | 13,129 | |
2026 | 7,228 | |
2027 | 4,265 | |
2028 | 3,922 | |
Thereafter | 909 | |
Total lease payments | 42,251 | |
Discount effect | 4,382 | |
Present value of future minimum lease payments | $ 37,869 | $ 77,291 |
Leases - Weighted-average Lease
Leases - Weighted-average Lease Term and Discount Rate (Details) | Dec. 31, 2023 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 3 years 8 months 19 days |
Weighted-average discount rate | 5.04% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Unfunded Loan Commitment, Commitments To Extend Credit | |||
Commitments and Contingencies [Line Items] | |||
Unfunded loan commitments | $ 78.1 | $ 138 | $ 110.8 |
Regulatory Requirements - Narra
Regulatory Requirements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 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 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Parent | ||
Amount | ||
CET1 capital | $ 1,090.2 | $ 1,005.8 |
Tier 1 capital | 1,090.2 | 1,005.8 |
Total capital | 1,169.2 | 1,088.1 |
Tier 1 leverage | 1,090.2 | 1,005.8 |
Risk-weighted assets | 6,104.5 | 6,360.7 |
Quarterly adjusted average assets | $ 8,476.1 | $ 7,119 |
Ratio | ||
CET1 capital | 0.179 | 0.158 |
Tier 1 capital | 0.179 | 0.158 |
Total capital | 0.192 | 0.171 |
Tier 1 leverage | 0.129 | 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 | $ 949.4 | $ 852.2 |
Tier 1 capital | 949.4 | 852.2 |
Total capital | 1,027.4 | 932.4 |
Tier 1 leverage | 949.4 | 852.2 |
Risk-weighted assets | 6,022.2 | 6,194 |
Quarterly adjusted average assets | $ 8,337.4 | $ 6,795.2 |
Ratio | ||
CET1 capital | 0.158 | 0.138 |
Tier 1 capital | 0.158 | 0.138 |
Total capital | 0.171 | 0.151 |
Tier 1 leverage | 0.114 | 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 |
Segment Reporting - Statements
Segment Reporting - Statements of Operations (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||||
Marketplace revenue | $ 291,484 | $ 683,626 | $ 578,580 | ||
Other non-interest income | 11,297 | 28,765 | 27,219 | ||
Total non-interest income | 302,781 | 712,391 | 605,799 | ||
Interest income | 832,630 | 557,340 | 292,832 | ||
Interest expense | (270,792) | (82,515) | (80,001) | ||
Net interest income | 561,838 | 474,825 | 212,831 | ||
Total net revenue | 864,619 | 1,187,216 | 818,630 | ||
(Provision for) reversal of credit losses | (243,565) | (267,326) | (138,800) | ||
Non-interest expense | (566,437) | (766,853) | (661,386) | ||
Income before income tax benefit (expense) | 54,617 | 153,037 | 18,444 | ||
Income tax benefit (expense) | (15,678) | 136,648 | 136 | ||
Net income | [1] | 38,939 | 289,685 | 18,580 | |
Capital expenditures | 59,509 | 69,481 | 34,413 | ||
Depreciation and amortization | 47,195 | 43,831 | 44,285 | ||
Operating Segments | LendingClub Bank | |||||
Segment Reporting Information [Line Items] | |||||
Marketplace revenue | $ 462,821 | 206,381 | 610,536 | ||
Other non-interest income | 94,953 | 74,684 | 85,208 | ||
Total non-interest income | 557,774 | 281,065 | 695,744 | ||
Interest income | 210,739 | 818,206 | 526,471 | ||
Interest expense | (8,412) | (266,218) | (60,954) | ||
Net interest income | 202,327 | 551,988 | 465,517 | ||
Total net revenue | 760,101 | 833,053 | 1,161,261 | ||
(Provision for) reversal of credit losses | (142,182) | (243,565) | (267,326) | ||
Non-interest expense | (547,799) | (537,026) | (724,304) | ||
Income before income tax benefit (expense) | 70,120 | 52,462 | 169,631 | ||
Income tax benefit (expense) | 9,171 | (17,881) | (42,354) | ||
Net income | 79,291 | 34,581 | 127,277 | ||
Capital expenditures | 32,602 | 59,509 | 69,481 | ||
Depreciation and amortization | 4,569 | 30,216 | 16,489 | ||
Operating Segments | LendingClub Corporation (Parent only) | |||||
Segment Reporting Information [Line Items] | |||||
Marketplace revenue | 41,817 | 48,231 | 115,759 | ||
Other non-interest income | 9,503 | 15,628 | 16,718 | ||
Total non-interest income | 51,320 | 63,859 | 132,477 | ||
Interest income | 14,424 | 30,869 | 82,093 | ||
Interest expense | (4,574) | (21,561) | (71,589) | ||
Net interest income | 9,850 | 9,308 | 10,504 | ||
Total net revenue | 61,170 | 73,167 | 142,981 | ||
(Provision for) reversal of credit losses | 0 | 0 | 3,382 | ||
Non-interest expense | (59,015) | (89,761) | (198,039) | ||
Income before income tax benefit (expense) | 2,155 | (16,594) | (51,676) | ||
Income tax benefit (expense) | 2,203 | 125,954 | 44,013 | ||
Net income | 4,358 | 109,360 | (7,663) | ||
Capital expenditures | 0 | 0 | 1,811 | ||
Depreciation and amortization | 16,979 | 27,342 | $ 39,716 | ||
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Marketplace revenue | 0 | 43,286 | 24,859 | ||
Other non-interest income | (84,452) | (72,890) | (72,071) | ||
Total non-interest income | (84,452) | (29,604) | (47,212) | ||
Interest income | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | ||
Net interest income | 0 | 0 | 0 | ||
Total net revenue | (84,452) | (29,604) | (47,212) | ||
(Provision for) reversal of credit losses | 0 | 0 | 0 | ||
Non-interest expense | 84,452 | 29,604 | 47,212 | ||
Income before income tax benefit (expense) | 0 | 0 | 0 | ||
Income tax benefit (expense) | (53,048) | 0 | 53,048 | ||
Net income | (53,048) | 0 | 53,048 | ||
Capital expenditures | 0 | 0 | 0 | ||
Depreciation and amortization | $ 0 | $ 0 | $ 0 | ||
[1]See “ Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. |
Segment Reporting - Balance She
Segment Reporting - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Total cash and cash equivalents | $ 1,252,504 | $ 1,057,030 | |
Restricted cash | [1] | 41,644 | 67,454 |
Total securities available for sale | 1,620,262 | 345,702 | |
Loans held for sale at fair value | 407,773 | 110,400 | |
Loans and leases held for investment, net | 4,539,915 | 4,705,302 | |
Loans held for investment at fair value | 262,190 | 925,938 | |
Retail and certificate loans held for investment at fair value | [1] | 10,488 | 55,425 |
Property, equipment and software, net | 161,517 | 136,473 | |
Investment in subsidiary | 0 | 0 | |
Goodwill | 75,717 | 75,717 | |
Other assets | [1] | 455,453 | 500,306 |
Total assets | 8,827,463 | 7,979,747 | |
Liabilities and Equity | |||
Total deposits | 7,333,486 | 6,392,553 | |
Borrowings | [1] | 8,866 | 74,858 |
Retail notes and certificates at fair value | 10,488 | 55,425 | |
Other liabilities | [1] | 222,801 | 292,617 |
Total liabilities | 7,575,641 | 6,815,453 | |
Total equity | 1,251,822 | 1,164,294 | |
Total liabilities and equity | 8,827,463 | 7,979,747 | |
Operating Segments | LendingClub Bank | |||
Assets | |||
Total cash and cash equivalents | 1,230,206 | 1,020,874 | |
Restricted cash | 0 | 0 | |
Total securities available for sale | 1,617,309 | 329,287 | |
Loans held for sale at fair value | 407,773 | 110,400 | |
Loans and leases held for investment, net | 4,539,915 | 4,705,302 | |
Loans held for investment at fair value | 253,800 | 906,711 | |
Retail and certificate loans held for investment at fair value | 0 | 0 | |
Property, equipment and software, net | 144,439 | 102,274 | |
Investment in subsidiary | 0 | 0 | |
Goodwill | 75,717 | 75,717 | |
Other assets | 341,680 | 339,341 | |
Total assets | 8,610,839 | 7,589,906 | |
Liabilities and Equity | |||
Total deposits | 7,426,445 | 6,420,827 | |
Borrowings | 6,398 | 64,154 | |
Retail notes and certificates at fair value | 0 | 0 | |
Other liabilities | 154,077 | 189,185 | |
Total liabilities | 7,586,920 | 6,674,166 | |
Total equity | 1,023,919 | 915,740 | |
Total liabilities and equity | 8,610,839 | 7,589,906 | |
Operating Segments | LendingClub Corporation (Parent only) | |||
Assets | |||
Total cash and cash equivalents | 110,273 | 56,475 | |
Restricted cash | 46,628 | 75,409 | |
Total securities available for sale | 2,953 | 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 | 8,390 | 19,227 | |
Retail and certificate loans held for investment at fair value | 10,488 | 55,425 | |
Property, equipment and software, net | 17,078 | 34,199 | |
Investment in subsidiary | 816,703 | 755,319 | |
Goodwill | 0 | 0 | |
Other assets | 131,135 | 173,851 | |
Total assets | 1,143,648 | 1,186,320 | |
Liabilities and Equity | |||
Total deposits | 0 | 0 | |
Borrowings | 2,468 | 10,704 | |
Retail notes and certificates at fair value | 10,488 | 55,425 | |
Other liabilities | 86,086 | 116,318 | |
Total liabilities | 99,042 | 182,447 | |
Total equity | 1,044,606 | 1,003,873 | |
Total liabilities and equity | 1,143,648 | 1,186,320 | |
Intersegment Eliminations | |||
Assets | |||
Total cash and cash equivalents | (87,975) | (20,319) | |
Restricted cash | (4,984) | (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 | (816,703) | (755,319) | |
Goodwill | 0 | 0 | |
Other assets | (17,362) | (12,886) | |
Total assets | (927,024) | (796,479) | |
Liabilities and Equity | |||
Total deposits | (92,959) | (28,274) | |
Borrowings | 0 | 0 | |
Retail notes and certificates at fair value | 0 | 0 | |
Other liabilities | (17,362) | (12,886) | |
Total liabilities | (110,321) | (41,160) | |
Total equity | (816,703) | (755,319) | |
Total liabilities and equity | $ (927,024) | $ (796,479) | |
[1] Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Consolidated Financial Statements – Note 7. Securitizations and Variable Interest Entities.” |
LendingClub Corporation _ Par_3
LendingClub Corporation – Parent Company-Only Financial Statements - Statements of Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Non-interest income: | ||||
Marketplace revenue | $ 291,484 | $ 683,626 | $ 578,580 | |
Other non-interest income | 11,297 | 28,765 | 27,219 | |
Total non-interest income | 302,781 | 712,391 | 605,799 | |
Interest income: | ||||
Interest on loans held for sale | 35,655 | 26,183 | 29,540 | |
Interest on loans held for investment at fair value | 69,866 | 12,877 | 4,436 | |
Interest on retail and certificate loans held for investment at fair value | 4,222 | 18,135 | 57,684 | |
Interest on securities available for sale | 40,235 | 16,116 | 11,025 | |
Other interest income | 65,917 | 18,579 | 1,170 | |
Total interest income | 832,630 | 557,340 | 292,832 | |
Interest expense: | ||||
Interest on retail notes and certificates at fair value | 4,222 | 18,135 | 57,684 | |
Other interest expense | 1,014 | 3,929 | 15,089 | |
Total interest expense | 270,792 | 82,515 | 80,001 | |
Net interest income | 561,838 | 474,825 | 212,831 | |
Total net revenue | 864,619 | 1,187,216 | 818,630 | |
Reversal of credit losses | 243,565 | 267,326 | 138,800 | |
Non-interest expense: | ||||
Compensation and benefits | 261,948 | 339,397 | 288,390 | |
Marketing | 93,840 | 197,747 | 156,142 | |
Equipment and software | 53,485 | 49,198 | 39,490 | |
Depreciation and amortization | 47,195 | 43,831 | 44,285 | |
Professional services | 35,173 | 50,516 | 47,572 | |
Occupancy | 17,532 | 21,977 | 24,249 | |
Other non-interest expense | 57,264 | 64,187 | 61,258 | |
Total non-interest expense | 566,437 | 766,853 | 661,386 | |
Income tax benefit | (15,678) | 136,648 | 136 | |
Net income | [1] | 38,939 | 289,685 | 18,580 |
Parent | ||||
Non-interest income: | ||||
Marketplace revenue | 41,817 | 48,231 | 115,759 | |
Other non-interest income | 9,503 | 15,628 | 16,718 | |
Total non-interest income | 51,320 | 63,859 | 132,477 | |
Interest income: | ||||
Interest on loans held for sale | 0 | 1,390 | 11,025 | |
Interest on loans held for investment at fair value | 2,589 | 2,875 | 4,436 | |
Interest on retail and certificate loans held for investment at fair value | 4,222 | 18,135 | 57,684 | |
Interest on securities available for sale | 6,802 | 7,608 | 8,922 | |
Other interest income | 811 | 861 | 26 | |
Total interest income | 14,424 | 30,869 | 82,093 | |
Interest expense: | ||||
Interest on retail notes and certificates at fair value | 4,222 | 18,135 | 57,684 | |
Other interest expense | 352 | 3,426 | 13,905 | |
Total interest expense | 4,574 | 21,561 | 71,589 | |
Net interest income | 9,850 | 9,308 | 10,504 | |
Total net revenue | 61,170 | 73,167 | 142,981 | |
Reversal of credit losses | 0 | 0 | (3,382) | |
Non-interest expense: | ||||
Compensation and benefits | 6,520 | 7,770 | 31,010 | |
Marketing | 0 | 188 | 5,460 | |
Equipment and software | 246 | 194 | 2,459 | |
Depreciation and amortization | 16,979 | 27,342 | 39,716 | |
Professional services | 1,210 | 523 | 14,666 | |
Occupancy | 9,552 | 13,346 | 17,751 | |
Other non-interest expense | 24,508 | 40,398 | 86,977 | |
Total non-interest expense | 59,015 | 89,761 | 198,039 | |
Income (Loss) before income tax benefit | 2,155 | (16,594) | (51,676) | |
Income tax benefit | 2,203 | 125,954 | 44,013 | |
Net income | 4,358 | 109,360 | (7,663) | |
Equity in undistributed earnings of subsidiary | 34,581 | 127,277 | 79,291 | |
Net income | $ 38,939 | $ 236,637 | $ 71,628 | |
[1]See “ Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. |
LendingClub Corporation _ Par_4
LendingClub Corporation – Parent Company-Only Financial Statements - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Net income | [1] | $ 38,939 | $ 289,685 | $ 18,580 |
Parent | ||||
Segment Reporting Information [Line Items] | ||||
Net income | 38,939 | 236,637 | 71,628 | |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized gain (loss) on securities available for sale | 6,706 | (1,556) | 9,153 | |
Equity in other comprehensive loss of subsidiary | (1,282) | (43,528) | (2,619) | |
Other comprehensive income (loss), net of tax | 5,424 | (45,084) | 6,534 | |
Total comprehensive income | $ 44,363 | $ 191,553 | $ 78,162 | |
[1]See “ Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. |
LendingClub Corporation _ Par_5
LendingClub Corporation – Parent Company-Only Financial Statements - Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and due from banks | $ 14,993 | $ 23,125 | |
Interest-bearing deposits in banks | 1,237,511 | 1,033,905 | |
Total cash and cash equivalents | 1,252,504 | 1,057,030 | |
Restricted cash | [1] | 41,644 | 67,454 |
Total securities available for sale | 1,620,262 | 345,702 | |
Loans held for investment at fair value | 262,190 | 925,938 | |
Retail and certificate loans held for investment at fair value | [1] | 10,488 | 55,425 |
Property, equipment and software, net | 161,517 | 136,473 | |
Other assets | [1] | 455,453 | 500,306 |
Total assets | 8,827,463 | 7,979,747 | |
Liabilities | |||
Borrowings | [1] | 8,866 | 74,858 |
Retail notes and certificates at fair value | 10,488 | 55,425 | |
Other liabilities | [1] | 222,801 | 292,617 |
Total liabilities | 7,575,641 | 6,815,453 | |
Equity | |||
Common stock, $0.01 par value; 180,000,000 shares authorized; 110,410,602 and 106,546,995 shares issued and outstanding, respectively | 1,104 | 1,065 | |
Additional paid-in capital | 1,669,828 | 1,628,590 | |
Accumulated deficit | (388,806) | (427,745) | |
Accumulated other comprehensive loss | (30,304) | (37,616) | |
Total equity | 1,251,822 | 1,164,294 | |
Total liabilities and equity | 8,827,463 | 7,979,747 | |
Securities available for sale at amortized cost | $ 1,663,990 | $ 399,668 | |
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (shares) | 180,000,000 | 180,000,000 | |
Common stock, shares outstanding (shares) | 110,410,602 | 106,546,995 | |
Common stock, shares issued (shares) | 110,410,602 | 106,546,995 | |
Parent | |||
Assets | |||
Cash and due from banks | $ 96,384 | $ 34,119 | |
Interest-bearing deposits in banks | 13,889 | 22,356 | |
Total cash and cash equivalents | 110,273 | 56,475 | |
Restricted cash | 46,628 | 75,409 | |
Total securities available for sale | 2,953 | 16,415 | |
Loans held for investment at fair value | 8,390 | 19,227 | |
Retail and certificate loans held for investment at fair value | 10,488 | 55,425 | |
Property, equipment and software, net | 17,078 | 34,199 | |
Investment in subsidiary | 937,987 | 923,618 | |
Other assets | 126,899 | 165,973 | |
Total assets | 1,260,696 | 1,346,741 | |
Liabilities | |||
Borrowings | 2,468 | 10,704 | |
Retail notes and certificates at fair value | 10,488 | 55,425 | |
Other liabilities | 86,086 | 116,318 | |
Total liabilities | 99,042 | 182,447 | |
Equity | |||
Common stock, $0.01 par value; 180,000,000 shares authorized; 110,410,602 and 106,546,995 shares issued and outstanding, respectively | 1,104 | 1,065 | |
Additional paid-in capital | 1,669,828 | 1,628,590 | |
Accumulated deficit | (468,097) | (427,745) | |
Accumulated other comprehensive loss | (41,181) | (37,616) | |
Total equity | 1,161,654 | 1,164,294 | |
Total liabilities and equity | 1,260,696 | 1,346,741 | |
Securities available for sale at amortized cost | $ 264 | $ 8,322 | |
[1] Includes amounts in consolidated variable interest entities (VIEs). See “ Notes to Consolidated Financial Statements – Note 7. Securitizations and Variable Interest Entities.” |
LendingClub Corporation _ Par_6
LendingClub Corporation – Parent Company-Only Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash Flows from Operating Activities: | ||||
Net income | [1] | $ 38,939 | $ 289,685 | $ 18,580 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Income tax benefit | 17,558 | (157,460) | (3,677) | |
Net fair value adjustments | 134,114 | (8,503) | (3,986) | |
Reversal of credit losses | 243,565 | 267,326 | 138,800 | |
Change in fair value of loan servicing assets | 62,581 | 73,229 | 54,108 | |
Stock-based compensation, net | 52,389 | 66,362 | 66,759 | |
Depreciation and amortization | 47,195 | 43,831 | 44,285 | |
Gain on sales of loans | (47,839) | (95,335) | (70,116) | |
Other, net | (8,932) | (1,828) | 11,263 | |
Net change to loans held for sale | (1,535,037) | 8,032 | 4,856 | |
Net change in operating assets and liabilities: | ||||
Other assets | 54,894 | (16,762) | (9,733) | |
Other liabilities | (87,746) | (20,836) | 26,372 | |
Net cash (used for) provided by operating activities | (1,136,600) | 375,568 | 239,869 | |
Cash Flows from Investing Activities: | ||||
Acquisition of company | 0 | 0 | (145,344) | |
Net change in loans and leases | 497,276 | (2,771,293) | (1,517,132) | |
Net decrease in retail and certificate loans | 47,545 | 171,853 | 437,870 | |
Proceeds from maturities and paydowns of securities available for sale | 97,709 | 86,078 | 143,402 | |
Purchases of property, equipment and software, net | (59,509) | (69,481) | (34,413) | |
Other investing activities | (4,676) | (4,423) | (12,747) | |
Net cash provided by (used for) investing activities | 516,697 | (2,809,800) | (454,410) | |
Cash Flows from Financing Activities: | ||||
Principal payments on retail notes and certificates | (47,545) | (182,260) | (438,032) | |
Other financing activities | (19,833) | (9,028) | (9,295) | |
Net cash provided by financing activities | 789,567 | 2,795,130 | 349,642 | |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 169,664 | 360,898 | 135,101 | |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,124,484 | 763,586 | 628,485 | |
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,294,148 | 1,124,484 | 763,586 | |
Parent | ||||
Cash Flows from Operating Activities: | ||||
Net income | 38,939 | 236,637 | 71,628 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in undistributed earnings of subsidiary | (34,581) | (127,277) | (79,291) | |
Income tax benefit | (2,203) | (125,954) | (44,013) | |
Net fair value adjustments | (2,903) | (5,929) | (5,936) | |
Reversal of credit losses | 0 | 0 | (3,382) | |
Change in fair value of loan servicing assets | 50,281 | 33,840 | 37,138 | |
Stock-based compensation, net | 5,253 | 6,310 | 14,506 | |
Depreciation and amortization | 16,979 | 27,342 | 39,716 | |
Gain on sales of loans | 0 | 0 | (3,372) | |
Other, net | 274 | 16 | 9,326 | |
Net change to loans held for sale | 5,953 | 31,658 | 90,609 | |
Net change in operating assets and liabilities: | ||||
Other assets | (30,602) | 42,219 | (29,556) | |
Other liabilities | (30,741) | (38,258) | (95,737) | |
Net cash (used for) provided by operating activities | 16,649 | 80,604 | 1,636 | |
Cash Flows from Investing Activities: | ||||
Acquisition of company | 0 | 0 | (145,344) | |
Payments for investments in and advances to subsidiary | 0 | (50,000) | (250,001) | |
Purchase of servicing asset investment | (50,576) | (59,880) | 0 | |
Proceeds from servicing asset investment | 72,343 | 24,564 | 0 | |
Net change in loans and leases | 5,066 | 4,443 | 1,360 | |
Net decrease in retail and certificate loans | 47,545 | 171,853 | 437,870 | |
Proceeds from maturities and paydowns of securities available for sale | 7,861 | 46,548 | 103,258 | |
Purchases of property, equipment and software, net | 0 | 0 | (1,811) | |
Other investing activities | 200 | 2,370 | 8,804 | |
Net cash provided by (used for) investing activities | 82,439 | 139,898 | 154,136 | |
Cash Flows from Financing Activities: | ||||
Principal payments on retail notes and certificates | (47,545) | (182,260) | (438,032) | |
Principal payments on Structured Program borrowings | (4,073) | (21,423) | (90,187) | |
Principal payments on short-term borrowings | (2,619) | (25,415) | (81,935) | |
Principal payments on long term debt | 0 | (15,300) | 0 | |
Other financing activities | (19,834) | (9,028) | (9,295) | |
Net cash provided by financing activities | (74,071) | (253,426) | (619,449) | |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 25,017 | (32,924) | (463,677) | |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 131,884 | 164,808 | 628,485 | |
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 156,901 | $ 131,884 | $ 164,808 | |
[1]See “ Notes to Consolidated Financial Statements – Note 4. Earnings Per Share ” for additional information. |