Document And Entity Information
Document And Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | On Deck Capital Inc | |
Entity Central Index Key | 1,420,811 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 69,974,770 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 165,713 | $ 220,433 |
Restricted cash | 35,496 | 29,448 |
Loans | 512,392 | 504,107 |
Less: Allowance for loan losses | (52,587) | (49,804) |
Loans, net of allowance for loan losses | 459,805 | 454,303 |
Loans held for sale | 6,849 | 1,523 |
Deferred debt issuance costs | 4,428 | 5,374 |
Property, equipment and software, net | 18,232 | 13,929 |
Other assets | 18,125 | 4,622 |
Total assets | 708,648 | 729,632 |
Liabilities: | ||
Accounts payable | 2,553 | 4,065 |
Interest payable | 695 | 819 |
Debt | 351,185 | 399,928 |
Accrued expenses and other liabilities | 24,739 | 14,215 |
Total liabilities | $ 379,172 | $ 419,027 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock—$0.005 par value, 1,000,000,000 shares authorized and 69,949,413 and 69,031,719 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | $ 365 | $ 360 |
Treasury stock—at cost | (5,843) | (5,656) |
Additional paid-in capital | 453,439 | 442,969 |
Accumulated deficit | (123,682) | (127,068) |
Accumulated other comprehensive loss | (669) | 0 |
Total On Deck Capital, Inc.'s stockholders’ equity | 323,610 | 310,605 |
Noncontrolling interest | 5,866 | 0 |
Total equity | 329,476 | 310,605 |
Total liabilities and equity | 708,648 | 729,632 |
Funding debt | ||
Liabilities: | ||
Debt | 351,185 | 387,928 |
Corporate debt | ||
Liabilities: | ||
Debt | $ 0 | $ 12,000 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 69,949,413 | 69,031,719 |
Common stock, shares outstanding (shares) | 69,949,413 | 69,031,719 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Interest income | $ 48,624 | $ 40,661 | $ 147,571 | $ 99,873 |
Gain on sales of loans | 16,789 | 1,642 | 35,178 | 4,569 |
Other revenue | 1,985 | 1,206 | 4,418 | 3,131 |
Gross revenue | 67,398 | 43,509 | 187,167 | 107,573 |
Cost of revenue: | ||||
Provision for loan losses | 16,239 | 17,359 | 54,865 | 47,011 |
Funding costs | 5,126 | 4,090 | 14,941 | 12,531 |
Total cost of revenue | 21,365 | 21,449 | 69,806 | 59,542 |
Net revenue | 46,033 | 22,060 | 117,361 | 48,031 |
Operating expense: | ||||
Sales and marketing | 15,847 | 8,325 | 43,503 | 21,799 |
Technology and analytics | 11,111 | 4,649 | 29,904 | 11,357 |
Processing and servicing | 3,352 | 2,235 | 9,070 | 5,928 |
General and administrative | 12,146 | 6,142 | 31,722 | 13,968 |
Total operating expense | 42,456 | 21,351 | 114,199 | 53,052 |
Income (loss) from operations | 3,577 | 709 | 3,162 | (5,021) |
Other expense: | ||||
Interest expense | (70) | (55) | (250) | (274) |
Warrant liability fair value adjustment | 0 | (300) | 0 | (9,122) |
Total other expense | (70) | (355) | (250) | (9,396) |
Income (loss) before provision for income taxes | 3,507 | 354 | 2,912 | (14,417) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 3,507 | 354 | 2,912 | (14,417) |
Accretion of dividends on redeemable convertible preferred stock | 0 | (3,628) | 0 | (9,828) |
Net loss attributable to noncontrolling interest | 226 | 0 | 458 | 0 |
Net income (loss) attributable to On Deck Capital, Inc. common stockholders | $ 3,733 | $ (3,274) | $ 3,370 | $ (24,245) |
Net income (loss) per share attributable to On Deck Capital, Inc. common stockholders: | ||||
Basic (in dollars per share) | $ 0.05 | $ (0.51) | $ 0.05 | $ (4.43) |
Diluted (in dollars per share) | $ 0.05 | $ (0.51) | $ 0.04 | $ (4.43) |
Weighted-average common shares outstanding: | ||||
Basic (shares) | 69,678,742 | 6,424,586 | 69,472,636 | 5,470,998 |
Diluted (shares) | 75,125,740 | 6,424,586 | 75,414,348 | 5,470,998 |
Comprehensive income (loss): | ||||
Foreign currency translation adjustment | $ (1,215) | $ 0 | $ (1,215) | $ 0 |
Comprehensive income (loss) | 2,292 | 354 | 1,697 | (14,417) |
Comprehensive loss attributable to noncontrolling interests | 546 | 0 | 546 | 0 |
Comprehensive income (loss) attributable to On Deck Capital, Inc. common stockholders | $ 3,064 | $ 354 | $ 2,701 | $ (14,417) |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net income (loss) | $ 2,912,000 | $ (14,417,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Provision for loan losses | 54,865,000 | 47,011,000 |
Depreciation and amortization | 4,621,000 | 2,848,000 |
Amortization of debt issuance costs | 2,130,000 | 2,010,000 |
Stock-based compensation | 8,065,000 | 1,447,000 |
Loss on disposal | 0 | 774,000 |
Warrant liability fair value adjustment | 0 | 9,127,000 |
Amortization of net deferred origination costs | 26,041,000 | 19,366,000 |
Gain on sales of loans | (35,178,000) | (4,569,000) |
Provision for unfunded loan commitment | 1,915,000 | 151,000 |
Common stock warrant issuance | 0 | 64,000 |
Gain on extinguishment of debt | (182,000) | 0 |
Changes in operating assets and liabilities: | ||
Other assets | (11,053,000) | (3,986,000) |
Accounts payable | 59,000 | 2,584,000 |
Interest payable | (124,000) | (403,000) |
Accrued expenses and other liabilities | 10,313,000 | 3,894,000 |
Originations of loans held for sale | (314,134,000) | (77,000,000) |
Payments of net deferred origination costs of loans held for sale | (12,142,000) | (3,985,000) |
Proceeds from sale of loans held for sale | 342,825,000 | 83,536,000 |
Principal repayments of loans held for sale | 8,757,000 | 788,000 |
Net cash provided by operating activities | 89,690,000 | 69,240,000 |
Cash flows from investing activities | ||
Change in restricted cash | (6,061,000) | (7,773,000) |
Purchases of property, equipment and software | (5,115,000) | (7,411,000) |
Capitalized internal-use software | (3,219,000) | (2,137,000) |
Originations of term loans and lines of credit, excluding rollovers into new originations | (809,319,000) | (605,332,000) |
Proceeds from sale of loans held for investment | 106,007,000 | 0 |
Payments of net deferred origination costs | (20,578,000) | (24,151,000) |
Principal repayments of term loans and lines of credit | 639,918,000 | 372,550,000 |
Net cash used in investing activities | (98,367,000) | (274,254,000) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options and warrants | 227,000 | 4,044,000 |
Payments of initial public offering costs | (1,845,000) | 0 |
Purchase of shares for treasury | (184,000) | 0 |
Investment by noncontrolling interest | 7,069,000 | 0 |
Proceeds from the issuance of redeemable convertible preferred stock | 0 | 77,000,000 |
Proceeds from the issuance of funding debt | 159,557,000 | 428,535,000 |
Payments of debt issuance costs | (1,185,000) | (4,964,000) |
Net cash (used in) provided by financing activities | (44,479,000) | 222,986,000 |
Effect of exchange rate changes on cash and cash equivalents | (1,564,000) | 0 |
Net (decrease) increase in cash and cash equivalents | (54,720,000) | 17,972,000 |
Cash and cash equivalents at beginning of period | 220,433,000 | 4,670,000 |
Cash and cash equivalents at end of period | 165,713,000 | 22,642,000 |
Supplemental disclosure of other cash flow information | ||
Cash paid for interest | 11,739,000 | 10,966,000 |
Supplemental disclosures of non-cash investing and financing activities | ||
Stock-based compensation included in capitalized internal-use software | 597,000 | 159,000 |
Loans transferred from loans held for sale to loans | 1,348,000 | 0 |
Accrued deferred offering costs | 0 | 1,350,000 |
Unpaid principal balance of term loans rolled into new originations | 194,218,000 | 105,974,000 |
Accretion of dividends on redeemable convertible preferred stock | 0 | 9,828,000 |
Funding debt | ||
Cash flows from financing activities | ||
Repayment of debt principal | (196,118,000) | (269,629,000) |
Corporate debt | ||
Cash flows from financing activities | ||
Repayment of debt principal | $ (12,000,000) | $ (12,000,000) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization On Deck Capital, Inc.’s principal activity is providing financing products to small businesses located throughout the United States and Canada, including term loans and lines of credit. We use technology and analytics to aggregate data about a business and then quickly and efficiently analyze the creditworthiness of the business using our proprietary credit scoring model. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") as contained in the Financial Accounting Standards Board (‘‘FASB’’) Accounting Standards Codification (“ASC”) for interim financial information. All intercompany transactions and accounts have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results for the full year or the results for any future periods. We have reclassified certain prior-period amounts to conform to the current period’s presentation. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements, including the related notes, and the other information contained in our Annual Report on Form 10-K for the year ended December 31, 2014 . When used in these notes to condensed consolidated financial statements, the terms "we," "us," "our" or similar terms refers to On Deck Capital, Inc. and its consolidated subsidiaries. In the second quarter of 2015, we acquired a 55% interest in On Deck Capital Australia PTY LTD ("OnDeck Australia") with the remaining 45% owned by non-affiliated parties. In the third quarter of 2015, we acquired a 67% interest in Lancelot QBFOD LLC with the remaining 33% owned by Intuit Inc. ("Intuit"). We have entered into the transaction involving OnDeck Australia with local partners to facilitate providing financing products to small businesses in Australia. We and Intuit jointly invested in Lancelot QBFOD LLC to provide integrated access to line of credit financing to Intuit customers utilizing Intuit's customer data. We consolidate the financial position and results of operations of OnDeck Australia and Lancelot QBFOD LLC. The noncontrolling interest, which is presented as a separate component of our consolidated equity, represents the minority owners' proportionate share of the equity of the jointly owned entities. The noncontrolling interest is adjusted for the minority owners' share of the earnings, losses, investments and distributions. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Significant estimates include allowance for loan losses, valuation of warrants, stock-based compensation expense, servicing assets/liabilities, capitalized software development costs, the useful lives of long-lived assets and valuation allowance for deferred tax assets. We base our estimates on historical experience, current events and other factors we believe to be reasonable under the circumstances. These estimates and assumptions are inherently subjective in nature; actual results may differ from these estimates and assumptions. Loans and Loans Held for Sale Loans We originate term loans and lines of credit (collectively, “loans”) that are generally short term in nature and require daily or weekly repayments. We have both the ability and intent to hold these loans to maturity. When we originate a term loan, the borrower grants us a security interest in its assets. We may or may not perfect our security interest by publicly filing a financing statement. Loans are carried at amortized cost, reduced by a valuation allowance for loan losses estimated as of the balance sheet dates. In accordance with ASC Subtopic 310-20, Nonrefundable Fees and Other Costs , the amortized cost of a loan is equal to the unpaid principal balance, plus net deferred origination costs. Net deferred origination costs are comprised of certain direct origination costs, net of all loan origination fees received. Loan origination fees include fees charged to the borrower related to origination that increase the loan’s effective interest yield. Direct origination costs in excess of loan origination fees received are included in the loan balance and amortized over the term of the loan using the effective interest method. Loan origination costs are limited to direct costs attributable to originating a loan, including commissions and personnel costs directly related to the time spent by those individuals performing activities related to loan origination. Additionally, when a term loan is originated in conjunction with the extinguishment of a previously issued term loan, also known as a renewal, we determine whether this is a new loan or a modification to an existing loan in accordance with ASC 310-20. If accounted for as a new loan, any remaining unamortized net deferred costs are recognized when the new loan is originated. Further, when a renewal is accounted for as a new loan, the cash flows of the origination and related net deferred origination costs of that new loan are presented as operating cash outflows on the Statement of Cash Flows if the renewal is designated to be sold or as investing cash outflows if the renewal is designated to be held for investment. If a renewal is accounted for as a modification, any remaining unamortized net deferred costs are amortized over the life of the modified loan. Further, when a renewal is accounted for as a modification, the additional cash flows associated with the origination and related net deferred origination costs of that modification are presented on the Statement of Cash Flows within the same section as the originally issued term loan prior to renewal. Loans Held for Sale OnDeck Marketplace ® is a program whereby we originate and sell certain term loans to third-party institutional investors and retain servicing rights. We sell these whole loans to purchasers in exchange for a cash payment. A portion of our loans are originated for the purpose of being sold through OnDeck Marketplace . These whole loans are initially classified as held for sale within a short period of time from the initial funding when the whole loan is identified for sale and a plan exists for the sale. A loan that is initially designated as held for sale or held for investment may be reclassified when our intent for that loan changes. When a loan held for sale is reclassified to held for investment, the loan is recorded at amortized costs and an appropriate provision for loan loss is recorded. When a loan held for investment is reclassified to held for sale, any allowance for loan loss related to that loan will be released. Loans held for sale, inclusive of net deferred origination costs, are recorded at the lower of amortized cost or fair value until the loans are sold or reclassified. Servicing Rights We service loans that we have sold to third parties and upon such sale, we may recognize a servicing asset or liability, collectively referred to as servicing rights. Receiving more than adequate compensation, as defined by ASC Topic 860 Transfers and Servicing , results in the recognition of a servicing asset. Receiving less than adequate compensation results in a servicing liability. Servicing assets and liabilities are recorded at fair value and are presented as a component of other assets or accrued expenses and other liabilities, respectively. The initial recognition of a servicing asset results in a corresponding increase to gain on sales of loans. The initial recognition of a servicing liability results in a corresponding decrease to gain on sales of loans. Subsequent adjustments to the fair value of servicing rights are recognized as an adjustment to other revenue. We utilize industry-standard modeling, such as discounted cash flow models, to arrive at an estimate of fair value and may utilize independent service providers to assist in the valuation process. Significant assumptions used in valuing our servicing rights are as follows: • Adequate compensation: We estimate adequate compensation as the rate a willing market participant would require to service loans with similar characteristics as those in the serviced portfolio. In the event of a lack of transparency and quantity of transactions related to trades of servicing rights of comparable loans (i.e., loans with comparable terms, unpaid principal balances, renewal rates and default rates) we may consider the actual cost incurred as an appropriate proxy for what a market participant would require to service the loans. • Discount rate: For servicing rights on loans, the discount rate reflects the time value of money and a risk premium intended to reflect the amount of compensation market participants would require. • Renewal rate: We estimate the timing and probability that a borrower may renew their loan in advance of scheduled repayment, thus reducing the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenues. • Default rate: We estimate the timing and probability of loan defaults and write-offs, thus reducing the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenues. Allowance for Loan Losses The allowance for loan losses (“ALLL”) is established through periodic charges to the provision for loan losses. Loan losses are charged against the ALLL when we believe that the future collection of principal is unlikely. Subsequent recoveries, if any, are credited to the ALLL. We evaluate the creditworthiness of our portfolio on a pooled basis due to its composition of small, homogeneous loans with similar general credit risk characteristics and diversification among variables including industry and geography. We use a proprietary forecast loss rate at origination for new loans that have not had the opportunity to make payments when they are first funded. The forecasted loss rate is updated daily to reflect actual loan performance, and the underlying ALLL model is updated monthly to reflect our assumptions. The allowance is subjective as it requires material estimates, including such factors as historical trends, known and inherent risks in the loan portfolio, adverse situations that may affect borrowers’ ability to repay and current economic conditions. Other qualitative factors considered may include items such as uncertainties in forecasting and modeling techniques, changes in portfolio composition, seasonality, business conditions and emerging trends. Recovery of the carrying value of loans is dependent to a great extent on conditions that may be beyond our control. Any combination of the aforementioned factors may adversely affect our loan portfolio resulting in increased delinquencies and loan losses and could require additional provisions for credit losses, which could impact future periods. In our opinion, we have provided adequate allowances to absorb probable credit losses inherent in our loan portfolio based on available and relevant information affecting the loan portfolio at each balance sheet date. Accrual for Unfunded Loan Commitments and Off-Balance Sheet Credit Exposures For our line of credit product we estimate probable losses on unfunded loan commitments similarly to the ALLL process and include the calculated amount in accrued expenses and other liabilities. We believe the accrual for unfunded loan commitments is sufficient to absorb estimated probable losses related to these unfunded credit commitments. The determination of the adequacy of the accrual is based on evaluations of the unfunded credit commitments, including an assessment of the probability of commitment usage, credit risk factors for lines of credit outstanding to these customers and the terms and expiration dates of the unfunded credit commitments. As of September 30, 2015 and December 31, 2014 , our off-balance sheet credit exposure related to the undrawn line of credit balances was $65.1 million and $28.7 million , respectively. The related accrual for unfunded loan commitments was $3.2 million and $1.3 million as of September 30, 2015 and December 31, 2014 , respectively. Net adjustments to the accrual for unfunded loan commitments are included in general and administrative expenses. Accrual for Third-Party Representations We have made certain representations to third parties that purchase loans through OnDeck Marketplace . There are no restricted assets related to the underlying loan sale agreements. Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans, such as fraudulent loan repurchase obligations or excess loss indemnification obligations, would be accrued if probable and estimable in accordance with ASC 450, Contingencies . As of September 30, 2015 and December 31, 2014 , we have recorded a liability of $0.3 million and $0 , respectively, related to estimated post-sale obligations. Revenue Recognition Interest Income We generate revenue primarily through interest and origination fees earned on loans originated and held to maturity. We recognize interest and origination fee revenue over the terms of the underlying loans using the effective interest method. Origination fees collected but not yet recognized as revenue are netted with direct origination costs and presented as a component of loans in our condensed consolidated balance sheets. Historically, borrowers who elected to prepay term loans were required to pay future interest and fees that would have been assessed had the term loan been repaid in accordance with its original agreement. Beginning in December 2014, certain term loans may be eligible for a discount of future interest and fees that would have been assessed had the loan been repaid in accordance with its original agreement. Gain on Sales of Loans In October 2013, we started OnDeck Marketplace whereby we originate and sell certain loans to third-party purchasers and retain servicing rights. We account for the loan sales in accordance with ASC Topic 860, Transfers and Servicing, which states that a transfer of a financial asset, a group of financial assets, or a participating interest in a financial asset is accounted for as a sale if all of the following conditions are met: 1. The financial assets are isolated from the transferor and its consolidated affiliates as well as its creditors. 2. The transferee or beneficial interest holders have the right to pledge or exchange the transferred financial assets. 3. The transferor does not maintain effective control of the transferred assets. For the nine months ended September 30, 2015 and 2014 , all sales met the requirements for sale treatment in accordance with ASC Topic 860, Transfers and Servicing . We record the gain or loss on the sale of a loan at the sale date in an amount equal to the proceeds received, adjusted for initial recognition of servicing assets or liabilities obtained at the date of sale, less outstanding principal and net deferred origination costs. Other Revenue Other revenue includes servicing revenue related to loans previously sold, fair value adjustments to servicing rights, marketing fees earned from our issuing bank partner, which are recognized as the related services are provided, and monthly fees charged to customers for our line of credit products. Stock-Based Compensation In accordance with ASC Topic 718, Compensation—Stock Compensation , all stock-based compensation provided to employees is measured based on the grant-date fair value of the awards and recognized as compensation expense on a straight-line basis over the period during which the award holder is required to perform services in exchange for the award (the vesting period). We issue stock options to employees and directors, which are valued using the Black-Scholes-Merton Option Pricing Model to estimate the fair value of stock options. The use of the option valuation model requires subjective assumptions, including the fair value of our common stock, the expected term of the option and the expected stock price volatility, which is based on our stock as well as our peer companies. We issue restricted stock units ("RSUs") to employees and directors, which are measured based on the fair values of the underlying stock on the dates of grant. Additionally, the recognition of stock-based compensation expense requires an estimation of the number of options and RSUs that will ultimately vest and the number of options and RSUs that will ultimately be forfeited. Estimated forfeitures are subsequently adjusted to reflect actual forfeiture. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue Recognition , which creates ASC 606, Revenue from Contracts with Customers , and supersedes ASC 605, Revenue Recognition . ASU 2014-09 requires revenue to be recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services as described in ASU 2014-09. In July 2015, the FASB voted to defer the effective date of the new revenue standard by one year. The new guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of December 15, 2016. We are currently in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which amends ASC 835-30, Interest - Imputation of Interest. ASU 2015-03 requires entities to change the presentation of debt issuance costs in the financial statements. Under the ASU, an entity will be required to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. This accounting standard is effective beginning January 1, 2016. We are currently assessing the impact this accounting standard will have on our consolidated financial statements. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic and diluted net income (loss) per common share is calculated as follows (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 3,507 $ 354 $ 2,912 $ (14,417 ) Less: net loss attributable to noncontrolling interest 226 — 458 — Less: Accretion of dividends on redeemable convertible preferred stock — (3,628 ) — (9,828 ) Net income (loss) attributable to On Deck Capital, Inc. common stockholders $ 3,733 $ (3,274 ) $ 3,370 $ (24,245 ) Denominator: Basic weighted-average common shares outstanding 69,678,742 6,424,586 69,472,636 5,470,998 Weighted average effect of dilutive securities: Stock options 5,151,449 — 5,607,795 — RSUs and restricted stock 16,531 — 52,229 — Warrants to purchase common stock 279,018 — 281,688 — Diluted weighted-average common shares outstanding 75,125,740 6,424,586 75,414,348 5,470,998 Net income (loss) attributable to On Deck Capital, Inc. common stockholders per common share: Basic $ 0.05 $ (0.51 ) $ 0.05 $ (4.43 ) Diluted $ 0.05 $ (0.51 ) $ 0.04 $ (4.43 ) Diluted loss per common share is the same as basic loss per common share for all loss periods presented because the effects of potentially dilutive items were anti-dilutive given our net losses in those periods. The following common share equivalent securities have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Anti-Dilutive Common Share Equivalents Redeemable convertible preferred stock: Series A — 4,438,662 — 4,438,662 Series B — 11,263,702 — 11,263,702 Series C — 9,735,538 — 9,735,538 Series C-1 — 2,311,440 — 2,311,440 Series D — 14,467,756 — 14,467,756 Series E — 5,234,546 — 5,234,546 Warrants to purchase redeemable convertible preferred stock — 305,000 — 305,000 Warrants to purchase common stock 22,000 3,307,526 309,792 3,307,526 RSUs and restricted stock 1,120,030 — 1,163,580 — Employee stock purchase program 18,176 — 18,176 — Stock options 5,344,263 9,970,802 10,928,551 9,970,802 Total anti-dilutive common share equivalents 6,504,469 61,034,972 12,420,099 61,034,972 The weighted-average exercise price for warrants to purchase 2,516,288 shares of common stock was $ 9.51 as of September 30, 2015 and December 31, 2014 . For the three and nine months ended September 30, 2015 , a warrant to purchase 2,206,496 shares of common stock was excluded from diluted weighted-average shares outstanding and anti-dilutive common share equivalents as performance conditions had not been met. |
Loans, Allowance for Loan Losse
Loans, Allowance for Loan Losses and Loans Held for Sale | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans, Allowance for Loan Losses and Loans Held for Sale | Loans, Allowance for Loan Losses and Loans Held for Sale Loans consisted of the following as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Term loans $ 455,701 $ 466,386 Lines of credit 48,613 24,177 Total unpaid principal balance 504,314 490,563 Net deferred origination costs 8,078 13,544 Total loans $ 512,392 $ 504,107 The activity in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Balance - beginning of period $ 53,052 $ 31,900 $ 49,804 $ 19,443 Provision for loan losses 16,239 17,359 54,865 47,011 Loans charged off (18,839 ) (10,403 ) (57,853 ) (28,462 ) Recoveries of loans previously charged off 2,135 900 5,771 1,764 Allowance for loan losses - end of period $ 52,587 $ 39,756 $ 52,587 $ 39,756 We originate most of the loans in our portfolio and also purchase loans from an issuing bank partner. During the three months ended September 30, 2015 and 2014 we purchased loans in the amount of $56.1 million and $48.4 million , respectively. During the nine months ended September 30, 2015 and 2014 we purchased loans in the amount of $159.6 million and $122.8 million , respectively. We typically sell previously charged-off loans to a third-party debt collector. The proceeds from these sales are recorded as a component of the recoveries of loans previously charged-off. For the three months ended September 30, 2015 and 2014 , previously charged-off loans sold accounted for $1.5 million and $0.8 million of recoveries, respectively. For the nine months ended September 30, 2015 and 2014 , previously charged-off loans sold accounted for $4.4 million and $1.4 million of recoveries, respectively. The following table illustrates the unpaid principal balance of loans related to non-delinquent, paying and non-paying delinquent loans as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Non-delinquent loans $ 442,922 $ 430,689 Delinquent: paying (accrual status) 35,585 40,049 Delinquent: non-paying (non-accrual status) 25,807 19,825 Total $ 504,314 $ 490,563 The balance of the allowance for loan losses for non-delinquent loans was $24.4 million and $20.5 million as of September 30, 2015 and December 31, 2014 , respectively, while the balance of the allowance for loan losses for delinquent loans was $28.2 million and $29.3 million as of September 30, 2015 and December 31, 2014 , respectively. The following table shows an aging analysis of the unpaid principal balance of loans by delinquency status as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 By delinquency status: Non-delinquent loans $ 442,922 $ 430,689 1-14 calendar days past due 23,824 23,954 15-29 calendar days past due 9,435 9,462 30-59 calendar days past due 9,443 10,707 60-89 calendar days past due 6,825 7,724 90 + calendar days past due 11,865 8,027 Total unpaid principal balance $ 504,314 $ 490,563 |
Servicing Rights
Servicing Rights | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Servicing Rights | Servicing Rights As of September 30, 2015 and December 31, 2014 , we serviced term loans we sold with remaining unpaid principal balance of $270.3 million and $79.7 million , respectively. During the three months ended September 30, 2015 and 2014 , we sold through OnDeck Marketplace loans with an unpaid principal balance of $ 169.0 million and $ 21.7 million , respectively, and during the nine months ended September 30, 2015 and 2014 we sold loans with an unpaid principal balance of $ 404.1 million and $ 75.0 million , respectively. For the three months ended September 30, 2015 and 2014 , we earned $1.3 million and $0.2 million of servicing revenue, respectively. For the nine months ended September 30, 2015 and 2014 , we earned $2.7 million and $0.6 million of servicing revenue, respectively. The following table summarizes the activity related to the fair value of our servicing assets for the three and nine months ended September 30, 2015: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Fair value at the beginning of period (Level 3) $ 78 $ — Addition: Servicing resulting from transfers of financial assets 1,466 1,544 Changes in fair value: Change in inputs or assumptions used in the valuation model 972 972 Other changes in fair value (1) (264 ) (264 ) Fair value at the end of period $ 2,252 $ 2,252 ___________ (1) Represents changes due to collection of expected cash flows through September 30, 2015. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our outstanding debt as of September 30, 2015 and December 31, 2014 : Description Type Maturity Date Interest Rates at September 30, 2015 September 30, 2015 December 31, 2014 (in thousands) Funding Debt: ODAST Agreement Securitization Facility May 2018 3.4% $ 174,978 $ 174,972 ODART Agreement Revolving September 2016 (1) 3.2% 38,258 105,598 ODAC Agreement Revolving May 2017 8.5% 23,698 32,733 ODAP Agreement Revolving August 2017 5.0% 14,634 56,686 PORT Agreement Revolving June 2017 2.4% 34,966 — RAOD Agreement Revolving May 2017 3.2% 40,476 — SBAF Agreement Revolving Various (2) 7.0% 16,238 16,740 Partner Synthetic Participations Term Various (3) Various 7,937 1,199 351,185 387,928 Corporate Debt: Square 1 Agreement Revolving October 2015 (1) 4.5% — 12,000 $ 351,185 $ 399,928 ___________ (1) Subsequent to September 30, 2015 maturity was extended as described below (2) Maturity dates range from December 2015 through August 2017 (3) Maturity dates range from October 2015 through September 2017 On May 22, 2015, through a wholly-owned bankruptcy remote subsidiary, we entered into a $50 million revolving line of credit with SunTrust Bank ("RAOD Agreement"). The facility bears interest at LIBOR plus 3.00% , and matures in May 2017. On May 22, 2015 an amendment was made to the ODAC Agreement extending the date of maturity from October 2016 to May 2017. In addition to other changes, this facility is now exclusively for the use of financing our line of credit product. On June 12, 2015, through a wholly-owned bankruptcy remote subsidiary, we entered into a $100 million revolving line of credit with Bank of America, N.A. ("PORT Agreement"). The facility bears interest at LIBOR plus 2.25% , and matures in June 2017. On August 13, 2015, an amendment was made to the ODAP Agreement converting the Lenders’ obligation from a commitment to make revolving loans to ODAP of up to $75 million to an agreement under which the Lenders are allowed to make, on an uncommitted basis, revolving loans to ODAP of up to $100 million ; extending the revolving termination date (i.e., the period during which ODAP is permitted to request the advance of revolving loans) by approximately one year to August 13, 2016 and the amortization period end date by approximately one year to August 13, 2017; increasing the borrowing advance rate; and various other changes. On October 2, 2015 an amendment was made to the Square 1 Agreement which extended the date of maturity from October 2015 to October 2016, added a minimum monthly interest payment and modified certain financial and portfolio covenants. On October 7, 2015 an amendment was made to the ODART Agreement extending the date of maturity from September 2016 to September 2017. As a result of the amendment, the Class A revolving loans will bear interest at a rate of Cost of Funds plus 2.25% and, at ODART's request, the Class B revolving lending commitment was terminated, reducing the total facility to $150 million . At ODART’s election, the $17.6 million Class B revolving commitment can be reintroduced which would restore the facility to $167.6 million . The borrowing base will be 95% and the interest rate will be LIBOR plus 7.00% for such Class B revolving loans. The amendment will further allow for a specified portion of the financing for weekly paying term loans. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock The following table presents a summary of activity for the preferred stock issued and outstanding for the nine months ended September 30, 2014 (in thousands): Series A Series B Series C Series C-1 Series D Series E Total Balance, January 1, 2014 $ 2,559 $ 22,918 $ 24,749 $ 5,401 $ 62,716 $ — $ 118,343 Issuance of preferred stock — — — — — 76,985 76,985 Exercise of preferred stock warrants — 5,982 — 7,225 — — 13,207 Accretion of dividends on preferred stock 98 960 1,226 306 3,610 3,628 9,828 Balance, September 30, 2014 $ 2,657 $ 29,860 $ 25,975 $ 12,932 $ 66,326 $ 80,613 $ 218,363 All redeemable convertible preferred stock automatically converted into shares of common stock upon close of our initial public offering in December 2014. As of September 30, 2015 we had no redeemable convertible preferred stock outstanding. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax As part of the process of preparing the unaudited condensed consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves determining the annual effective tax rate, income tax expense (benefit) and deferred income tax expense (benefit) related to temporary differences resulting from differing treatment of items, such as the loan loss reserve, timing of depreciation and deferred rent liabilities, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the accompanying unaudited condensed consolidated balance sheets. We must then assess the likelihood that the deferred tax assets will be recovered through the generation of future taxable income. We have not incurred any income tax during the three and nine months ended September 30, 2015 and 2014 due to one or more of the following reasons: • the book losses incurred during those periods; • the anticipated and known book losses for years ending December 31, 2015 and ended 2014 , respectively, or; • the significant deferred tax assets available for application should permanent and temporary differences from book income yield taxable income. We claimed deductions on our U.S. federal tax return for certain expenses related to our initial public offering that were validated at the level of substantial authority, but did not exceed the "more likely than not" threshold. Deductions that are not deemed more likely than not to withstand examination by a taxing authority are considered to be "uncertain tax positions" as defined in ASC 740 Income Taxes . We estimate the tax-effected exposure of these deductions to be approximately $2.2 million . These deductions did not result in any change to our tax payable or our provision for income taxes, both of which were $0 as of and for the nine months ended September 30, 2015, as we would have been in a loss position for both book and tax purposes without regard to these deductions. These deductions will increase our deferred tax asset as well as the corresponding valuation allowance. There will be no financial statement benefit derived from this additional deferred tax asset until such time as the valuation allowance is released. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical losses and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will not realize the benefits of these deductible differences in the foreseeable future. Therefore, we have recorded a full valuation allowance against our net deferred tax asset. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. Due to the lack of transparency and quantity of transactions related to trades of servicing rights of comparable loans, we utilize an income valuation technique to estimate fair value. We utilize industry-standard modeling, such as discounted cash flow models, to arrive at an estimate of fair value and may utilize independent service providers to assist in the valuation process. This determination requires significant judgment. The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2015 (in thousands): September 30, 2015 Description Level 1 Level 2 Level 3 Total Assets: Servicing assets $ — $ — $ 2,252 $ 2,252 Total assets $ — $ — $ 2,252 $ 2,252 There were no transfers between levels during the nine months ended September 30, 2015 . The following tables presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurement at September 30, 2015 . Servicing Rights September 30, 2015 Unobservable input Weighted Average Servicing assets Discount rate 30.00 % Cost of service (1) 0.07 % Renewal rate 43.44 % Default rate 6.43 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. The weighted averages above are indicative of the range for discount rate, cost of service and default rate. The renewal rate had a range of 35.44% to 50.91% during the three months ended September 30, 2015 . The above unobservable inputs were consistent during the three months ended September 30, 2015 when servicing right assets were initially recognized. Changes in certain of the unobservable inputs noted above may have a significant impact on the fair value of our servicing asset. The following table summarizes the effect adverse changes in estimate would have on the value of the servicing asset that we carry at fair value as of September 30, 2015 given a hypothetical changes in default rate and cost to service (in thousands): Servicing Assets Default rate assumption: Default rate increase of 25% (92 ) Default rate increase of 50% (182 ) Cost to service assumption: Cost to service increase by 25% (53 ) Cost to service increase by 50% (106 ) We had no servicing assets or liabilities as of December 31, 2014. Warrant Liability The following table presents the changes in the Level 3 instruments measured at fair value on a recurring basis for the three and nine months ended September 30, 2014 (in thousands): Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Warrant liability balance - beginning of period $ 13,272 $ 4,446 Exercise of warrants (10,770 ) (10,766 ) Change in fair value 300 9,122 Warrant liability balance - end of period $ 2,802 $ 2,802 The warrant liability is classified within Level 3 due to the liability being valued using significant unobservable inputs. Fair value of these warrants is based on a valuation of our common stock. As the valuation of our common stock was determined prior to our initial public offering, we used a combination of the inputs including option pricing models, secondary transactions with third-party investors and an initial public offering scenario to determine the valuation of our common stock. A hypothetical increase or decrease in assumed asset volatility of 10% in the option pricing model would result in an immaterial impact to the fair value of the warrants as of September 30, 2014 . In the unaudited consolidated statements of operations, changes in fair value are included in warrant liability fair value adjustment. Assets and Liabilities Disclosed at Fair Value As loans are not measured at fair value, the following discussion relates to estimating the fair value disclosure under ASC Topic 825. The fair value of loans is estimated by discounting scheduled cash flows through the estimated maturity. The estimated market discount rates used for loans are our current offering rates for comparable loans with similar terms. The carrying amounts of certain of our financial instruments, including loans and loans held for sale, approximate fair value due to their short-term nature and are considered Level 3. The carrying amount of our financing obligations, such as fixed-rate debt, approximates fair value, by considering the borrowing rates currently available to us for financing obligations with similar terms and credit risks. |
Noncontrolling Interest
Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest The following table summarizes changes in equity, including the equity attributable to noncontrolling interests, for the nine months ended September 30, 2015 : Nine Months Ended September 30, 2015 On Deck Capital, Inc's Noncontrolling interest Total Balance as of January 1, 2015 310,605 — 310,605 OnDeck Australia capitalization — 6,870 6,870 Net income (loss) 3,370 (458 ) 2,912 Stock based compensation 8,065 — 8,065 Exercise of options and warrants 2,422 — 2,422 Other (183 ) — (183 ) Cumulative translation adjustment (669 ) (546 ) (1,215 ) Balance at September 30, 2015 323,610 5,866 329,476 Comprehensive loss: Net loss 3,370 (458 ) 2,912 Other comprehensive income (loss): Foreign currency translation adjustment (669 ) (546 ) (1,215 ) Comprehensive income (loss) 2,701 (1,004 ) 1,697 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation includes both stock options and RSUs. The following table summarizes the assumptions used for estimating the fair value of stock options granted during the nine months ended September 30, 2015 : Nine Months Ended September 30, 2015 Risk-free interest rate 1.65 - 2.13% Expected term (years) 5.51 - 6.04 Expected volatility 41.30 - 46.51% Dividend yield 0% Weighted-average grant date fair value per option $5.70 The following is a summary of option activity during the nine months ended September 30, 2015 : Number of Weighted- Weighted- Aggregate (in years) (in thousands) Outstanding at January 1, 2015 10,371,472 $ 4.59 Granted 1,611,617 $ 13.84 Exercised (676,446 ) $ 1.06 Forfeited (352,790 ) $ 6.34 Expired (25,302 ) $ 4.49 Outstanding at September 30, 2015 10,928,551 $ 6.10 8.06 $ 52,548 Exercisable at September 30, 2015 4,602,723 $ 2.43 7.18 $ 34,974 Vested or expected to vest as of September 30, 2015 10,589,511 $ 5.90 8.06 $ 52,024 In addition, as of September 30, 2015 we had 1,155,008 RSUs outstanding. Stock-based compensation expense was attributed to the following line items in our accompanying unaudited condensed consolidated statements of operations for the nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Sales and marketing $ 1,012 $ 167 $ 2,180 $ 325 Technology and analytics 778 142 1,719 290 Processing and servicing 227 65 530 126 General and administrative 1,690 435 3,636 706 Total $ 3,707 $ 809 $ 8,065 $ 1,447 Total compensation cost related to nonvested awards not yet recognized as of September 30, 2015 was $22.9 million and will be recognized over a weighted-average period of approximately 3.04 years. The aggregate intrinsic value of options exercised during the three and nine months ended September 30, 2015 was $1.8 million and $9.7 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In March 2015, we amended the lease of our New York City corporate headquarters to extend the lease and rent additional space. We will occupy the additional space incrementally, as it becomes available, at which time we will incur a proportionate amount of additional rent payments. The dates the additional space will be available are uncertain as they are dependent upon the departure of current occupants and the landlord’s ability to prepare the space. Upon the completion of delivery of all additional space, our additional average monthly fixed rent payment will be approximately $0.4 million . The amended lease also provides for rent credits aggregating $3.6 million and a tenant improvement allowance not to exceed $5.8 million . The lease will terminate ten years and ten months after the delivery of certain portions of the additional space. In April 2015, we provided notice of termination to the landlord of our current office space in Denver, Colorado resulting in a termination fee of $0.4 million which is included in general and administrative expense for the nine months ended September 30, 2015. The lease is scheduled to expire in January 2016. In June 2015, we entered into a sublease in Denver, Colorado (the "New Denver Lease") as the subtenant. The New Denver Lease is for approximately 72,000 square feet with an average monthly fixed rent payment of approximately $144,000 . The New Denver Lease also provides for a tenant improvement allowance not to exceed $2.6 million . The lease has a term of 124 months after the commencement date. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash, cash equivalents, restricted cash and loans. We hold cash, cash equivalents and restricted cash in accounts at regulated domestic financial institutions in amounts that may exceed FDIC insured amounts and at non-U.S. financial institutions where deposited amounts may be uninsured. We believe these institutions to be of acceptable credit quality and we have not experienced any related losses to date. We are exposed to default risk on loans we originate and hold and that we purchase from our issuing bank partner. We perform an evaluation of each customer's financial condition and during the term of the customer's loan(s), we have the contractual right to limit a customer's ability to take working capital loans or other financing from other lenders that may cause a material adverse change in the financial condition of the customer. There is no single customer or group of customers that comprise a significant portion of our loan portfolio. Contingencies Two separate putative class actions were filed in August 2015 in the United States District Court for the Southern District of New York against us, certain of our executive officers, our directors and certain or all of the underwriters of our initial public offering, or IPO. The suits allege that the registration statement for our IPO contained materially false and misleading statements regarding, or failed to disclose, specified information in violation of the Securities Act of 1933, as amended. The suits seek a determination that the case is a proper class action and/or certification of the plaintiff as a class representative, rescission or a rescissory measure of damages and/or unspecified damages, interest, attorneys’ fees and other fees and costs.The deadline for seeking lead plaintiff status was October 5, 2015. The court has not ruled on the pending motion for consolidation of the two suits into a single case, the appointment of a lead plaintiff and approval of plaintiff’s counsel. The Company intends to defend itself vigorously in these matters, although at this time we cannot predict the outcome. From time to time we are subject to other legal proceedings and claims in the ordinary course of business. The results of such matters cannot be predicted with certainty. However, we believe that the final outcome of any such current matters will not result in a material adverse effect on our consolidated financial condition, consolidated results of operations or consolidated cash flows. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") as contained in the Financial Accounting Standards Board (‘‘FASB’’) Accounting Standards Codification (“ASC”) for interim financial information. All intercompany transactions and accounts have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results for the full year or the results for any future periods. We have reclassified certain prior-period amounts to conform to the current period’s presentation. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements, including the related notes, and the other information contained in our Annual Report on Form 10-K for the year ended December 31, 2014 . When used in these notes to condensed consolidated financial statements, the terms "we," "us," "our" or similar terms refers to On Deck Capital, Inc. and its consolidated subsidiaries. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Significant estimates include allowance for loan losses, valuation of warrants, stock-based compensation expense, servicing assets/liabilities, capitalized software development costs, the useful lives of long-lived assets and valuation allowance for deferred tax assets. We base our estimates on historical experience, current events and other factors we believe to be reasonable under the circumstances. These estimates and assumptions are inherently subjective in nature; actual results may differ from these estimates and assumptions. |
Loans and Loans Held for Sale | Loans We originate term loans and lines of credit (collectively, “loans”) that are generally short term in nature and require daily or weekly repayments. We have both the ability and intent to hold these loans to maturity. When we originate a term loan, the borrower grants us a security interest in its assets. We may or may not perfect our security interest by publicly filing a financing statement. Loans are carried at amortized cost, reduced by a valuation allowance for loan losses estimated as of the balance sheet dates. In accordance with ASC Subtopic 310-20, Nonrefundable Fees and Other Costs , the amortized cost of a loan is equal to the unpaid principal balance, plus net deferred origination costs. Net deferred origination costs are comprised of certain direct origination costs, net of all loan origination fees received. Loan origination fees include fees charged to the borrower related to origination that increase the loan’s effective interest yield. Direct origination costs in excess of loan origination fees received are included in the loan balance and amortized over the term of the loan using the effective interest method. Loan origination costs are limited to direct costs attributable to originating a loan, including commissions and personnel costs directly related to the time spent by those individuals performing activities related to loan origination. Additionally, when a term loan is originated in conjunction with the extinguishment of a previously issued term loan, also known as a renewal, we determine whether this is a new loan or a modification to an existing loan in accordance with ASC 310-20. If accounted for as a new loan, any remaining unamortized net deferred costs are recognized when the new loan is originated. Further, when a renewal is accounted for as a new loan, the cash flows of the origination and related net deferred origination costs of that new loan are presented as operating cash outflows on the Statement of Cash Flows if the renewal is designated to be sold or as investing cash outflows if the renewal is designated to be held for investment. If a renewal is accounted for as a modification, any remaining unamortized net deferred costs are amortized over the life of the modified loan. Further, when a renewal is accounted for as a modification, the additional cash flows associated with the origination and related net deferred origination costs of that modification are presented on the Statement of Cash Flows within the same section as the originally issued term loan prior to renewal. Loans Held for Sale OnDeck Marketplace ® is a program whereby we originate and sell certain term loans to third-party institutional investors and retain servicing rights. We sell these whole loans to purchasers in exchange for a cash payment. A portion of our loans are originated for the purpose of being sold through OnDeck Marketplace . These whole loans are initially classified as held for sale within a short period of time from the initial funding when the whole loan is identified for sale and a plan exists for the sale. A loan that is initially designated as held for sale or held for investment may be reclassified when our intent for that loan changes. When a loan held for sale is reclassified to held for investment, the loan is recorded at amortized costs and an appropriate provision for loan loss is recorded. When a loan held for investment is reclassified to held for sale, any allowance for loan loss related to that loan will be released. Loans held for sale, inclusive of net deferred origination costs, are recorded at the lower of amortized cost or fair value until the loans are sold or reclassified. Servicing Rights We service loans that we have sold to third parties and upon such sale, we may recognize a servicing asset or liability, collectively referred to as servicing rights. Receiving more than adequate compensation, as defined by ASC Topic 860 Transfers and Servicing , results in the recognition of a servicing asset. Receiving less than adequate compensation results in a servicing liability. Servicing assets and liabilities are recorded at fair value and are presented as a component of other assets or accrued expenses and other liabilities, respectively. The initial recognition of a servicing asset results in a corresponding increase to gain on sales of loans. The initial recognition of a servicing liability results in a corresponding decrease to gain on sales of loans. Subsequent adjustments to the fair value of servicing rights are recognized as an adjustment to other revenue. We utilize industry-standard modeling, such as discounted cash flow models, to arrive at an estimate of fair value and may utilize independent service providers to assist in the valuation process. Significant assumptions used in valuing our servicing rights are as follows: • Adequate compensation: We estimate adequate compensation as the rate a willing market participant would require to service loans with similar characteristics as those in the serviced portfolio. In the event of a lack of transparency and quantity of transactions related to trades of servicing rights of comparable loans (i.e., loans with comparable terms, unpaid principal balances, renewal rates and default rates) we may consider the actual cost incurred as an appropriate proxy for what a market participant would require to service the loans. • Discount rate: For servicing rights on loans, the discount rate reflects the time value of money and a risk premium intended to reflect the amount of compensation market participants would require. • Renewal rate: We estimate the timing and probability that a borrower may renew their loan in advance of scheduled repayment, thus reducing the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenues. • Default rate: We estimate the timing and probability of loan defaults and write-offs, thus reducing the projected unpaid principal balance and expected term of the loan, which are used to project future servicing revenues. Allowance for Loan Losses The allowance for loan losses (“ALLL”) is established through periodic charges to the provision for loan losses. Loan losses are charged against the ALLL when we believe that the future collection of principal is unlikely. Subsequent recoveries, if any, are credited to the ALLL. We evaluate the creditworthiness of our portfolio on a pooled basis due to its composition of small, homogeneous loans with similar general credit risk characteristics and diversification among variables including industry and geography. We use a proprietary forecast loss rate at origination for new loans that have not had the opportunity to make payments when they are first funded. The forecasted loss rate is updated daily to reflect actual loan performance, and the underlying ALLL model is updated monthly to reflect our assumptions. The allowance is subjective as it requires material estimates, including such factors as historical trends, known and inherent risks in the loan portfolio, adverse situations that may affect borrowers’ ability to repay and current economic conditions. Other qualitative factors considered may include items such as uncertainties in forecasting and modeling techniques, changes in portfolio composition, seasonality, business conditions and emerging trends. Recovery of the carrying value of loans is dependent to a great extent on conditions that may be beyond our control. Any combination of the aforementioned factors may adversely affect our loan portfolio resulting in increased delinquencies and loan losses and could require additional provisions for credit losses, which could impact future periods. In our opinion, we have provided adequate allowances to absorb probable credit losses inherent in our loan portfolio based on available and relevant information affecting the loan portfolio at each balance sheet date. Accrual for Unfunded Loan Commitments and Off-Balance Sheet Credit Exposures For our line of credit product we estimate probable losses on unfunded loan commitments similarly to the ALLL process and include the calculated amount in accrued expenses and other liabilities. We believe the accrual for unfunded loan commitments is sufficient to absorb estimated probable losses related to these unfunded credit commitments. The determination of the adequacy of the accrual is based on evaluations of the unfunded credit commitments, including an assessment of the probability of commitment usage, credit risk factors for lines of credit outstanding to these customers and the terms and expiration dates of the unfunded credit commitments. As of September 30, 2015 and December 31, 2014 , our off-balance sheet credit exposure related to the undrawn line of credit balances was $65.1 million and $28.7 million , respectively. The related accrual for unfunded loan commitments was $3.2 million and $1.3 million as of September 30, 2015 and December 31, 2014 , respectively. Net adjustments to the accrual for unfunded loan commitments are included in general and administrative expenses. Accrual for Third-Party Representations We have made certain representations to third parties that purchase loans through OnDeck Marketplace . There are no restricted assets related to the underlying loan sale agreements. Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans, such as fraudulent loan repurchase obligations or excess loss indemnification obligations, would be accrued if probable and estimable in accordance with ASC 450, Contingencies . |
Revenue Recognition | Interest Income We generate revenue primarily through interest and origination fees earned on loans originated and held to maturity. We recognize interest and origination fee revenue over the terms of the underlying loans using the effective interest method. Origination fees collected but not yet recognized as revenue are netted with direct origination costs and presented as a component of loans in our condensed consolidated balance sheets. Historically, borrowers who elected to prepay term loans were required to pay future interest and fees that would have been assessed had the term loan been repaid in accordance with its original agreement. Beginning in December 2014, certain term loans may be eligible for a discount of future interest and fees that would have been assessed had the loan been repaid in accordance with its original agreement. Gain on Sales of Loans In October 2013, we started OnDeck Marketplace whereby we originate and sell certain loans to third-party purchasers and retain servicing rights. We account for the loan sales in accordance with ASC Topic 860, Transfers and Servicing, which states that a transfer of a financial asset, a group of financial assets, or a participating interest in a financial asset is accounted for as a sale if all of the following conditions are met: 1. The financial assets are isolated from the transferor and its consolidated affiliates as well as its creditors. 2. The transferee or beneficial interest holders have the right to pledge or exchange the transferred financial assets. 3. The transferor does not maintain effective control of the transferred assets. For the nine months ended September 30, 2015 and 2014 , all sales met the requirements for sale treatment in accordance with ASC Topic 860, Transfers and Servicing . We record the gain or loss on the sale of a loan at the sale date in an amount equal to the proceeds received, adjusted for initial recognition of servicing assets or liabilities obtained at the date of sale, less outstanding principal and net deferred origination costs. Other Revenue Other revenue includes servicing revenue related to loans previously sold, fair value adjustments to servicing rights, marketing fees earned from our issuing bank partner, which are recognized as the related services are provided, and monthly fees charged to customers for our line of credit products. |
Stock-Based Compensation | In accordance with ASC Topic 718, Compensation—Stock Compensation , all stock-based compensation provided to employees is measured based on the grant-date fair value of the awards and recognized as compensation expense on a straight-line basis over the period during which the award holder is required to perform services in exchange for the award (the vesting period). We issue stock options to employees and directors, which are valued using the Black-Scholes-Merton Option Pricing Model to estimate the fair value of stock options. The use of the option valuation model requires subjective assumptions, including the fair value of our common stock, the expected term of the option and the expected stock price volatility, which is based on our stock as well as our peer companies. We issue restricted stock units ("RSUs") to employees and directors, which are measured based on the fair values of the underlying stock on the dates of grant. Additionally, the recognition of stock-based compensation expense requires an estimation of the number of options and RSUs that will ultimately vest and the number of options and RSUs that will ultimately be forfeited. Estimated forfeitures are subsequently adjusted to reflect actual forfeiture. |
Recent Accounting Pronouncements Not Yet Adopted | In May 2014, the FASB issued ASU 2014-09, Revenue Recognition , which creates ASC 606, Revenue from Contracts with Customers , and supersedes ASC 605, Revenue Recognition . ASU 2014-09 requires revenue to be recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services as described in ASU 2014-09. In July 2015, the FASB voted to defer the effective date of the new revenue standard by one year. The new guidance will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of December 15, 2016. We are currently in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which amends ASC 835-30, Interest - Imputation of Interest. ASU 2015-03 requires entities to change the presentation of debt issuance costs in the financial statements. Under the ASU, an entity will be required to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. This accounting standard is effective beginning January 1, 2016. We are currently assessing the impact this accounting standard will have on our consolidated financial statements. |
Fair Value Measurements | We evaluate our financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. Due to the lack of transparency and quantity of transactions related to trades of servicing rights of comparable loans, we utilize an income valuation technique to estimate fair value. We utilize industry-standard modeling, such as discounted cash flow models, to arrive at an estimate of fair value and may utilize independent service providers to assist in the valuation process. This determination requires significant judgment. As loans are not measured at fair value, the following discussion relates to estimating the fair value disclosure under ASC Topic 825. The fair value of loans is estimated by discounting scheduled cash flows through the estimated maturity. The estimated market discount rates used for loans are our current offering rates for comparable loans with similar terms. The carrying amounts of certain of our financial instruments, including loans and loans held for sale, approximate fair value due to their short-term nature and are considered Level 3. The carrying amount of our financing obligations, such as fixed-rate debt, approximates fair value, by considering the borrowing rates currently available to us for financing obligations with similar terms and credit risks. |
Net Income (Loss) Per Common 19
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net income (loss) per common share is calculated as follows (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 3,507 $ 354 $ 2,912 $ (14,417 ) Less: net loss attributable to noncontrolling interest 226 — 458 — Less: Accretion of dividends on redeemable convertible preferred stock — (3,628 ) — (9,828 ) Net income (loss) attributable to On Deck Capital, Inc. common stockholders $ 3,733 $ (3,274 ) $ 3,370 $ (24,245 ) Denominator: Basic weighted-average common shares outstanding 69,678,742 6,424,586 69,472,636 5,470,998 Weighted average effect of dilutive securities: Stock options 5,151,449 — 5,607,795 — RSUs and restricted stock 16,531 — 52,229 — Warrants to purchase common stock 279,018 — 281,688 — Diluted weighted-average common shares outstanding 75,125,740 6,424,586 75,414,348 5,470,998 Net income (loss) attributable to On Deck Capital, Inc. common stockholders per common share: Basic $ 0.05 $ (0.51 ) $ 0.05 $ (4.43 ) Diluted $ 0.05 $ (0.51 ) $ 0.04 $ (4.43 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following common share equivalent securities have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Anti-Dilutive Common Share Equivalents Redeemable convertible preferred stock: Series A — 4,438,662 — 4,438,662 Series B — 11,263,702 — 11,263,702 Series C — 9,735,538 — 9,735,538 Series C-1 — 2,311,440 — 2,311,440 Series D — 14,467,756 — 14,467,756 Series E — 5,234,546 — 5,234,546 Warrants to purchase redeemable convertible preferred stock — 305,000 — 305,000 Warrants to purchase common stock 22,000 3,307,526 309,792 3,307,526 RSUs and restricted stock 1,120,030 — 1,163,580 — Employee stock purchase program 18,176 — 18,176 — Stock options 5,344,263 9,970,802 10,928,551 9,970,802 Total anti-dilutive common share equivalents 6,504,469 61,034,972 12,420,099 61,034,972 |
Loans, Allowance for Loan Los20
Loans, Allowance for Loan Losses and Loans Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Loans | Loans consisted of the following as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Term loans $ 455,701 $ 466,386 Lines of credit 48,613 24,177 Total unpaid principal balance 504,314 490,563 Net deferred origination costs 8,078 13,544 Total loans $ 512,392 $ 504,107 |
Schedule of Allowance for Loan Losses | The activity in the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Balance - beginning of period $ 53,052 $ 31,900 $ 49,804 $ 19,443 Provision for loan losses 16,239 17,359 54,865 47,011 Loans charged off (18,839 ) (10,403 ) (57,853 ) (28,462 ) Recoveries of loans previously charged off 2,135 900 5,771 1,764 Allowance for loan losses - end of period $ 52,587 $ 39,756 $ 52,587 $ 39,756 |
Schedule of Non-delinquent and Delinquent Loans | The following table shows an aging analysis of the unpaid principal balance of loans by delinquency status as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 By delinquency status: Non-delinquent loans $ 442,922 $ 430,689 1-14 calendar days past due 23,824 23,954 15-29 calendar days past due 9,435 9,462 30-59 calendar days past due 9,443 10,707 60-89 calendar days past due 6,825 7,724 90 + calendar days past due 11,865 8,027 Total unpaid principal balance $ 504,314 $ 490,563 The following table illustrates the unpaid principal balance of loans related to non-delinquent, paying and non-paying delinquent loans as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Non-delinquent loans $ 442,922 $ 430,689 Delinquent: paying (accrual status) 35,585 40,049 Delinquent: non-paying (non-accrual status) 25,807 19,825 Total $ 504,314 $ 490,563 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Summary of Activity for Servicing Assets | The following table summarizes the activity related to the fair value of our servicing assets for the three and nine months ended September 30, 2015: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 Fair value at the beginning of period (Level 3) $ 78 $ — Addition: Servicing resulting from transfers of financial assets 1,466 1,544 Changes in fair value: Change in inputs or assumptions used in the valuation model 972 972 Other changes in fair value (1) (264 ) (264 ) Fair value at the end of period $ 2,252 $ 2,252 ___________ (1) Represents changes due to collection of expected cash flows through September 30, 2015. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following table summarizes our outstanding debt as of September 30, 2015 and December 31, 2014 : Description Type Maturity Date Interest Rates at September 30, 2015 September 30, 2015 December 31, 2014 (in thousands) Funding Debt: ODAST Agreement Securitization Facility May 2018 3.4% $ 174,978 $ 174,972 ODART Agreement Revolving September 2016 (1) 3.2% 38,258 105,598 ODAC Agreement Revolving May 2017 8.5% 23,698 32,733 ODAP Agreement Revolving August 2017 5.0% 14,634 56,686 PORT Agreement Revolving June 2017 2.4% 34,966 — RAOD Agreement Revolving May 2017 3.2% 40,476 — SBAF Agreement Revolving Various (2) 7.0% 16,238 16,740 Partner Synthetic Participations Term Various (3) Various 7,937 1,199 351,185 387,928 Corporate Debt: Square 1 Agreement Revolving October 2015 (1) 4.5% — 12,000 $ 351,185 $ 399,928 ___________ (1) Subsequent to September 30, 2015 maturity was extended as described below (2) Maturity dates range from December 2015 through August 2017 (3) Maturity dates range from October 2015 through September 2017 |
Redeemable Convertible Prefer23
Redeemable Convertible Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Summary of Activity for Preferred Stock | The following table presents a summary of activity for the preferred stock issued and outstanding for the nine months ended September 30, 2014 (in thousands): Series A Series B Series C Series C-1 Series D Series E Total Balance, January 1, 2014 $ 2,559 $ 22,918 $ 24,749 $ 5,401 $ 62,716 $ — $ 118,343 Issuance of preferred stock — — — — — 76,985 76,985 Exercise of preferred stock warrants — 5,982 — 7,225 — — 13,207 Accretion of dividends on preferred stock 98 960 1,226 306 3,610 3,628 9,828 Balance, September 30, 2014 $ 2,657 $ 29,860 $ 25,975 $ 12,932 $ 66,326 $ 80,613 $ 218,363 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2015 (in thousands): September 30, 2015 Description Level 1 Level 2 Level 3 Total Assets: Servicing assets $ — $ — $ 2,252 $ 2,252 Total assets $ — $ — $ 2,252 $ 2,252 |
Summary of Significant Unobservable Inputs for Level 3 Fair Value Measurement | The following tables presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurement at September 30, 2015 . Servicing Rights September 30, 2015 Unobservable input Weighted Average Servicing assets Discount rate 30.00 % Cost of service (1) 0.07 % Renewal rate 43.44 % Default rate 6.43 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. |
Summary of Effect on Changes in Estimate for Servicing Asset Fair Value | The following table summarizes the effect adverse changes in estimate would have on the value of the servicing asset that we carry at fair value as of September 30, 2015 given a hypothetical changes in default rate and cost to service (in thousands): Servicing Assets Default rate assumption: Default rate increase of 25% (92 ) Default rate increase of 50% (182 ) Cost to service assumption: Cost to service increase by 25% (53 ) Cost to service increase by 50% (106 ) |
Schedule of Changes in Level 3 Instruments Measured at Fair Value on Recurring Basis | The following table presents the changes in the Level 3 instruments measured at fair value on a recurring basis for the three and nine months ended September 30, 2014 (in thousands): Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Warrant liability balance - beginning of period $ 13,272 $ 4,446 Exercise of warrants (10,770 ) (10,766 ) Change in fair value 300 9,122 Warrant liability balance - end of period $ 2,802 $ 2,802 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Equity | The following table summarizes changes in equity, including the equity attributable to noncontrolling interests, for the nine months ended September 30, 2015 : Nine Months Ended September 30, 2015 On Deck Capital, Inc's Noncontrolling interest Total Balance as of January 1, 2015 310,605 — 310,605 OnDeck Australia capitalization — 6,870 6,870 Net income (loss) 3,370 (458 ) 2,912 Stock based compensation 8,065 — 8,065 Exercise of options and warrants 2,422 — 2,422 Other (183 ) — (183 ) Cumulative translation adjustment (669 ) (546 ) (1,215 ) Balance at September 30, 2015 323,610 5,866 329,476 Comprehensive loss: Net loss 3,370 (458 ) 2,912 Other comprehensive income (loss): Foreign currency translation adjustment (669 ) (546 ) (1,215 ) Comprehensive income (loss) 2,701 (1,004 ) 1,697 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Assumptions for Estimating Fair Value of Stock Options | The following table summarizes the assumptions used for estimating the fair value of stock options granted during the nine months ended September 30, 2015 : Nine Months Ended September 30, 2015 Risk-free interest rate 1.65 - 2.13% Expected term (years) 5.51 - 6.04 Expected volatility 41.30 - 46.51% Dividend yield 0% Weighted-average grant date fair value per option $5.70 |
Summary of Option Activity | The following is a summary of option activity during the nine months ended September 30, 2015 : Number of Weighted- Weighted- Aggregate (in years) (in thousands) Outstanding at January 1, 2015 10,371,472 $ 4.59 Granted 1,611,617 $ 13.84 Exercised (676,446 ) $ 1.06 Forfeited (352,790 ) $ 6.34 Expired (25,302 ) $ 4.49 Outstanding at September 30, 2015 10,928,551 $ 6.10 8.06 $ 52,548 Exercisable at September 30, 2015 4,602,723 $ 2.43 7.18 $ 34,974 Vested or expected to vest as of September 30, 2015 10,589,511 $ 5.90 8.06 $ 52,024 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was attributed to the following line items in our accompanying unaudited condensed consolidated statements of operations for the nine months ended September 30, 2015 and 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Sales and marketing $ 1,012 $ 167 $ 2,180 $ 325 Technology and analytics 778 142 1,719 290 Processing and servicing 227 65 530 126 General and administrative 1,690 435 3,636 706 Total $ 3,707 $ 809 $ 8,065 $ 1,447 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Basis of Presentation and Principles of Consolidation) (Details) | Sep. 30, 2015 | Jun. 30, 2015 |
OnDeck Australia [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 55.00% | |
Ownership percentage by non-affiliated parties | 45.00% | |
Lancelot QBFOD LLC [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 67.00% | |
Ownership percentage by non-affiliated parties | 33.00% |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Accrual for Unfunded Loan Commitments and Off-Balance Sheet Credit Exposures) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Reserve for Off-balance Sheet Activities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Related accrual for unfunded loan commitments | $ 3.2 | $ 1.3 |
Unused lines of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit exposure related to undrawn line of credit | $ 65.1 | $ 28.7 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Accrual for Third-Party Representations) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Accrual for Third-Party Representations | ||
Loss Contingencies [Line Items] | ||
Liability recorded related to estimated post-sale obligations | $ 300,000 | $ 0 |
Net Income (Loss) Per Common 30
Net Income (Loss) Per Common Share (Basic and Diluted Net Loss per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income (loss) | $ 3,507 | $ 354 | $ 2,912 | $ (14,417) |
Less: net loss attributable to noncontrolling interest | 226 | 0 | 458 | 0 |
Less: Accretion of dividends on redeemable convertible preferred stock | 0 | (3,628) | 0 | (9,828) |
Net income (loss) attributable to On Deck Capital, Inc. common stockholders | $ 3,733 | $ (3,274) | $ 3,370 | $ (24,245) |
Basic weighted-average common shares outstanding | 69,678,742 | 6,424,586 | 69,472,636 | 5,470,998 |
Diluted weighted-average common shares outstanding | 75,125,740 | 6,424,586 | 75,414,348 | 5,470,998 |
Net income (loss) attributable to On Deck Capital, Inc. common stockholders per common share: | ||||
Basic (in dollars per share) | $ 0.05 | $ (0.51) | $ 0.05 | $ (4.43) |
Diluted (in dollars per share) | $ 0.05 | $ (0.51) | $ 0.04 | $ (4.43) |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average effect of dilutive securities | 5,151,449 | 0 | 5,607,795 | 0 |
RSUs and restricted stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average effect of dilutive securities | 16,531 | 0 | 52,229 | 0 |
Warrants to purchase common stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average effect of dilutive securities | 279,018 | 0 | 281,688 | 0 |
Net Income (Loss) Per Common 31
Net Income (Loss) Per Common Share (Anti-Dilutive Common Share Equivalents) (Details) - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 6,504,469 | 61,034,972 | 12,420,099 | 61,034,972 | |
Warrants to purchase [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 2,206,496 | 2,206,496 | |||
RSUs and restricted stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 1,120,030 | 0 | 1,163,580 | 0 | |
Employee stock purchase program [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 18,176 | 0 | 18,176 | 0 | |
Stock options [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 5,344,263 | 9,970,802 | 10,928,551 | 9,970,802 | |
Series A [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 0 | 4,438,662 | 0 | 4,438,662 | |
Series B [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 0 | 11,263,702 | 0 | 11,263,702 | |
Series C [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 0 | 9,735,538 | 0 | 9,735,538 | |
Series C-1 [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 0 | 2,311,440 | 0 | 2,311,440 | |
Series D [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 0 | 14,467,756 | 0 | 14,467,756 | |
Series E [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 0 | 5,234,546 | 0 | 5,234,546 | |
Redeemable Convertible Preferred Stock [Member] | Warrants to purchase [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 0 | 305,000 | 0 | 305,000 | |
Common Stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 2,516,288 | 2,516,288 | |||
Common Stock [Member] | Warrants to purchase [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive common share equivalents | 22,000 | 3,307,526 | 309,792 | 3,307,526 |
Net Income (Loss) Per Common 32
Net Income (Loss) Per Common Share (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Class of Warrant or Right [Line Items] | |||||
Warrant to purchase shares of common stock excluded | 6,504,469 | 61,034,972 | 12,420,099 | 61,034,972 | |
Weighted Average [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Weighted average exercise price for warrants to purchase common stock (in dollars per share) | $ 9.51 | $ 9.51 | $ 9.51 | ||
Common Stock [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant to purchase shares of common stock excluded | 2,516,288 | 2,516,288 | |||
Warrants to purchase common stock [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant to purchase shares of common stock excluded | 2,206,496 | 2,206,496 | |||
Warrants to purchase common stock [Member] | Common Stock [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrant to purchase shares of common stock excluded | 22,000 | 3,307,526 | 309,792 | 3,307,526 |
Loans, Allowance for Loan Los33
Loans, Allowance for Loan Losses and Loans Held for Sale (Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 504,314 | $ 490,563 |
Net deferred origination costs | 8,078 | 13,544 |
Total loans | 512,392 | 504,107 |
Term Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 455,701 | 466,386 |
Lines of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 48,613 | $ 24,177 |
Loans, Allowance for Loan Los34
Loans, Allowance for Loan Losses and Loans Held for Sale (Allowance Roll Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance - beginning of period | $ 53,052 | $ 31,900 | $ 49,804 | $ 19,443 |
Provision for loan losses | 16,239 | 17,359 | 54,865 | 47,011 |
Loans charged off | (18,839) | (10,403) | (57,853) | (28,462) |
Recoveries of loans previously charged off | 2,135 | 900 | 5,771 | 1,764 |
Allowance for loan losses - end of period | $ 52,587 | $ 39,756 | $ 52,587 | $ 39,756 |
Loans, Allowance for Loan Los35
Loans, Allowance for Loan Losses and Loans Held for Sale (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Receivables [Abstract] | |||||
Originations of loans held for investment, modified | $ 56.1 | $ 48.4 | $ 159.6 | $ 122.8 | |
Proceeds from sale of previously charged-off loans | 1.5 | $ 0.8 | 4.4 | $ 1.4 | |
Allowance for loan losses for non-delinquent loans | 24.4 | 24.4 | $ 20.5 | ||
Allowance for loan losses for delinquent loans | $ 28.2 | $ 28.2 | $ 29.3 |
Loans, Allowance for Loan Los36
Loans, Allowance for Loan Losses and Loans Held for Sale (Non-delinquent, Paying and Non-paying Delinquent Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Non-delinquent loans | $ 442,922 | $ 430,689 |
Delinquent: paying (accrual status) | 35,585 | 40,049 |
Delinquent: non-paying (non-accrual status) | 25,807 | 19,825 |
Total loans | $ 504,314 | $ 490,563 |
Loans, Allowance for Loan Los37
Loans, Allowance for Loan Losses and Loans Held for Sale (Aging Analysis of Term Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-delinquent loans | $ 442,922 | $ 430,689 |
Total loans | 504,314 | 490,563 |
1-14 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 23,824 | 23,954 |
15 to 29 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 9,435 | 9,462 |
30 to 59 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 9,443 | 10,707 |
60 to 89 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 6,825 | 7,724 |
Equal to or greater than 90 calendar days past due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 11,865 | $ 8,027 |
Servicing Rights (Narrative) (D
Servicing Rights (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Transfers and Servicing [Abstract] | |||||
Serviced unpaid principal balance | $ 270.3 | $ 270.3 | $ 79.7 | ||
Unpaid principal balance for loans sold during period | 169 | $ 21.7 | 404.1 | $ 75 | |
Servicing revenue | $ 1.3 | $ 0.2 | $ 2.7 | $ 0.6 |
Servicing Rights (Fair Value of
Servicing Rights (Fair Value of Servicing Assets) (Details) - Term Loan [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value at the beginning of period (Level 3) | $ 78 | $ 0 |
Addition: | ||
Servicing resulting from transfers of financial assets | 1,466 | 1,544 |
Changes in fair value: | ||
Change in inputs or assumptions used in the valuation model | 972 | 972 |
Other changes in fair value | (264) | (264) |
Fair value at the end of period | $ 2,252 | $ 2,252 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Outstanding debt | $ 351,185 | $ 399,928 |
Partner Synthetic Participations [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 7,937 | 1,199 |
Funding debt | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 351,185 | 387,928 |
ODAST Agreement Due May 2018 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 3.40% | |
Outstanding debt | $ 174,978 | 174,972 |
ODART Agreement Due September 2016 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 3.20% | |
Outstanding debt | $ 38,258 | 105,598 |
ODAC Agreement Due May 2017 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 8.50% | |
Outstanding debt | $ 23,698 | 32,733 |
ODAP Agreement Due August 2017 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 5.00% | |
Outstanding debt | $ 14,634 | 56,686 |
PORT Agreement Due June 2017 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 2.40% | |
Outstanding debt | $ 34,966 | 0 |
RAOD Agreement Due May 2017 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 3.20% | |
Outstanding debt | $ 40,476 | 0 |
SBAF Agreement Due December 2015 through August 2017 [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 7.00% | |
Outstanding debt | $ 16,238 | 16,740 |
Corporate debt | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 0 | 12,000 |
Corporate debt | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 4.50% | |
Outstanding debt | $ 0 | $ 12,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - Revolving Credit Facility [Member] - USD ($) | Oct. 07, 2015 | Jun. 12, 2015 | May. 22, 2015 | Aug. 13, 2015 | Aug. 12, 2015 |
RAOD Agreement Due May 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit | $ 50,000,000 | ||||
RAOD Agreement Due May 2017 [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest spread | 3.00% | ||||
PORT Agreement Due June 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit | $ 100,000,000 | ||||
PORT Agreement Due June 2017 [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest spread | 2.25% | ||||
ODAP Agreement Due August 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit | $ 100,000,000 | $ 75,000,000 | |||
ODART Agreement Due September 2016 [Member] | Class A [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit | $ 150,000,000 | ||||
ODART Agreement Due September 2016 [Member] | Class B [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest spread | 7.00% | ||||
Line of credit before election | $ 17,600,000 | ||||
Maximum capacity if election is made | $ 167,600,000 | ||||
Borrowing base | 95.00% | ||||
ODART Agreement Due September 2016 [Member] | Cost of Funds [Member] | Class A [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest spread | 2.25% |
Redeemable Convertible Prefer42
Redeemable Convertible Preferred Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | $ 118,343,000 | |||
Issuance of preferred stock | 76,985,000 | |||
Exercise of preferred stock warrants | 13,207,000 | |||
Accretion of dividends on preferred stock | $ 0 | $ 3,628,000 | $ 0 | 9,828,000 |
Ending Balance, Preferred Stock Issued and Outstanding | 218,363,000 | 218,363,000 | ||
Series A [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 2,559,000 | |||
Issuance of preferred stock | 0 | |||
Exercise of preferred stock warrants | 0 | |||
Accretion of dividends on preferred stock | 98,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 2,657,000 | 2,657,000 | ||
Series B [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 22,918,000 | |||
Issuance of preferred stock | 0 | |||
Exercise of preferred stock warrants | 5,982,000 | |||
Accretion of dividends on preferred stock | 960,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 29,860,000 | 29,860,000 | ||
Series C [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 24,749,000 | |||
Issuance of preferred stock | 0 | |||
Exercise of preferred stock warrants | 0 | |||
Accretion of dividends on preferred stock | 1,226,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 25,975,000 | 25,975,000 | ||
Series C-1 [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 5,401,000 | |||
Issuance of preferred stock | 0 | |||
Exercise of preferred stock warrants | 7,225,000 | |||
Accretion of dividends on preferred stock | 306,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 12,932,000 | 12,932,000 | ||
Series D [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 62,716,000 | |||
Issuance of preferred stock | 0 | |||
Exercise of preferred stock warrants | 0 | |||
Accretion of dividends on preferred stock | 3,610,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | 66,326,000 | 66,326,000 | ||
Series E [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance, Preferred Stock Issued and Outstanding | 0 | |||
Issuance of preferred stock | 76,985,000 | |||
Exercise of preferred stock warrants | 0 | |||
Accretion of dividends on preferred stock | 3,628,000 | |||
Ending Balance, Preferred Stock Issued and Outstanding | $ 80,613,000 | $ 80,613,000 | ||
Redeemable Convertible Preferred Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Ending Balance, Preferred Stock Issued and Outstanding | $ 0 | $ 0 |
Income Tax Income Tax (Details)
Income Tax Income Tax (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Estimated tax effect of claimed deductions | $ 2,200,000 | |||
Tax payable | $ 0 | 0 | ||
Provision for income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr44
Fair Value of Financial Instruments (Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring Basis [Member] - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | $ 2,252,000 | $ 0 |
Total assets | 2,252,000 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 0 | |
Total assets | 0 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 0 | |
Total assets | 0 | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 2,252,000 | |
Total assets | $ 2,252,000 |
Fair Value of Financial Instr45
Fair Value of Financial Instruments (Servicing Rights) (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Weighted Average [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 30.00% | |
Cost of service | 0.07% | |
Renewal rate | 43.44% | |
Default rate | 6.43% | |
Minimum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Renewal rate | 35.44% | |
Maximum [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Renewal rate | 50.91% |
Fair Value of Financial Instr46
Fair Value of Financial Instruments Fair Value of Financial Instruments (Services Assets) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Fair Value Disclosures [Abstract] | |
Default rate increase | 25.00% |
Default rate increase | 50.00% |
Cost to service increase | 25.00% |
Cost to service increase | 50.00% |
Default rate assumption, Default rate increase of 25% | $ (92) |
Default rate assumption, Default rate increase of 50% | (182) |
Cost to service assumption, Cost to service increase by 25% | (53) |
Cost to service assumption, Cost to service increase by 50% | $ (106) |
Fair Value of Financial Instr47
Fair Value of Financial Instruments (Warrant Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Hypothetical change in assumed asset volatility | 10.00% | ||
Warrant Liability [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Warrant liability balance - beginning of period | $ 13,272 | $ 4,446 | |
Exercise of warrants | (10,770) | (10,766) | |
Change in fair value | 300 | 9,122 | |
Warrant liability balance - end of period | $ 2,802 | $ 2,802 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | $ 310,605 | |||
OnDeck Australia capitalization | 6,870 | |||
Net income (loss) | $ 3,507 | $ 354 | 2,912 | $ (14,417) |
Stock based compensation | 8,065 | |||
Exercise of options and warrants | 2,422 | |||
Other | (183) | |||
Cumulative translation adjustment | (1,215) | 0 | (1,215) | 0 |
Ending balance | 329,476 | 329,476 | ||
Comprehensive income (loss) | 2,292 | $ 354 | 1,697 | $ (14,417) |
On Deck Capital, Inc's stockholders' equity | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 310,605 | |||
OnDeck Australia capitalization | 0 | |||
Net income (loss) | 3,370 | |||
Stock based compensation | 8,065 | |||
Exercise of options and warrants | 2,422 | |||
Other | (183) | |||
Cumulative translation adjustment | (669) | |||
Ending balance | 323,610 | 323,610 | ||
Comprehensive income (loss) | 2,701 | |||
Noncontrolling interest | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 0 | |||
OnDeck Australia capitalization | 6,870 | |||
Net income (loss) | (458) | |||
Stock based compensation | 0 | |||
Exercise of options and warrants | 0 | |||
Other | 0 | |||
Cumulative translation adjustment | (546) | |||
Ending balance | $ 5,866 | 5,866 | ||
Comprehensive income (loss) | $ (1,004) |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Assumptions) (Details) - Employee Stock Option [Member] | 9 Months Ended |
Sep. 30, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate, Minimum | 1.65% |
Risk-free interest rate, Maximum | 2.13% |
Expected volatility, Minimum | 41.30% |
Expected volatility, Maximum | 46.51% |
Dividend yield | 0.00% |
Weighted-average grant date fair value per option (in dollars per share) | $ 5.70 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 5 years 6 months 4 days |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 6 years 15 days |
Stock-Based Compensation (Sum50
Stock-Based Compensation (Summary of Option Activity) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance, Outstanding, Number of Options | 10,371,472 |
Granted, Number of Options | 1,611,617 |
Exercised, Number of Options | (676,446) |
Forfeited, Number of Options | (352,790) |
Expired, Number of Options | (25,302) |
Ending Balance, Outstanding, Number of Options | 10,928,551 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning Balance, Outstanding, Weighted-Average Exercise Price | $ / shares | $ 4.59 |
Granted, Weighted-Average Exercise Price | $ / shares | 13.84 |
Exercised, Weighted-Average Exercise Price | $ / shares | 1.06 |
Forfeited, Weighted-Average Exercise Price | $ / shares | 6.34 |
Expired, Weighted-Average Exercise Price | $ / shares | 4.49 |
Ending Balance, Outstanding, Weighted-Average Exercise Price | $ / shares | $ 6.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Outstanding, Weighted-Average Remaining Contractual Term | 8 years 22 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 52,548 |
Exercisable, Number of Options | 4,602,723 |
Exercisable, Weighted-Average Exercise Price | $ / shares | $ 2.43 |
Exercisable, Weighted-Average Remaining Contractual Term | 7 years 2 months 5 days |
Exercisable, Aggregate Intrinsic Value | $ | $ 34,974 |
Vested or expected to vest, Number of Options | 10,589,511 |
Vested or expected to vest, Weighted-Average Exercise Price | $ / shares | $ 5.90 |
Vested or expected to vest, Weighted-Average Remaining Contractual Term | 8 years 22 days |
Vested or expected to vest, Aggregate Intrinsic Value | $ | $ 52,024 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | $ 3,707 | $ 809 | $ 8,065 | $ 1,447 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | 1,012 | 167 | 2,180 | 325 |
Technology and Analytics [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | 778 | 142 | 1,719 | 290 |
Processing and Servicing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | 227 | 65 | 530 | 126 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | $ 1,690 | $ 435 | $ 3,636 | $ 706 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015USD ($)shares | Sep. 30, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost for nonvested awards not yet recognized | $ 22.9 | $ 22.9 |
Period for recognition | 3 years 15 days | |
Aggregate intrinsic value, employee options exercised | $ 1.8 | $ 9.7 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of units outstanding (shares) | shares | 1,155,008 | 1,155,008 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ft² in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jun. 30, 2015USD ($)ft² | Apr. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Aug. 31, 2015lawsuit | |
Loss Contingencies [Line Items] | ||||
Initial monthly fixed rent payments | $ 400 | |||
Rent credits | 3,600 | |||
Tenant improvement allowance | $ 5,800 | |||
Lease term of contract | 10 years 10 months | |||
Pending Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of putative class actions filed | lawsuit | 2 | |||
New Denver Lease [Member] | ||||
Loss Contingencies [Line Items] | ||||
Tenant improvement allowance | $ 2,600 | |||
Number of square feet | ft² | 72 | |||
Average monthly fixed rent payment | $ 144 | |||
Lease term of contract | 124 months | |||
General and Administrative Expense [Member] | ||||
Loss Contingencies [Line Items] | ||||
Lease termination fee | $ 400 |