Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
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 | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 73,635,045 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 64,292 | $ 79,554 |
Restricted cash | 56,729 | 44,432 |
Loans held for investment | 957,203 | 1,000,445 |
Less: Allowance for loan losses | (104,872) | (110,162) |
Loans held for investment, net | 852,331 | 890,283 |
Loans held for sale | 0 | 373 |
Property, equipment and software, net | 24,975 | 29,405 |
Other assets | 17,069 | 20,044 |
Total assets | 1,015,396 | 1,064,091 |
Liabilities: | ||
Accounts payable | 2,918 | 5,271 |
Interest payable | 2,213 | 2,122 |
Accrued expenses and other liabilities | 30,987 | 38,496 |
Total liabilities | 756,296 | 800,494 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity (deficit): | ||
Common stock—$0.005 par value, 1,000,000,000 shares authorized and 77,002,976 and 74,801,825 shares issued and 73,623,312 and 71,605,708 outstanding at September 30, 2017 and December 31, 2016, respectively. | 385 | 374 |
Treasury stock—at cost | (7,561) | (6,697) |
Additional paid-in capital | 489,465 | 477,526 |
Accumulated deficit | (227,973) | (211,299) |
Accumulated other comprehensive loss | (6) | (379) |
Total On Deck Capital, Inc. stockholders' equity | 254,310 | 259,525 |
Noncontrolling interest | 4,790 | 4,072 |
Total equity | 259,100 | 263,597 |
Total liabilities and equity | 1,015,396 | 1,064,091 |
Funding debt | ||
Liabilities: | ||
Debt | 702,998 | 726,639 |
Corporate debt | ||
Liabilities: | ||
Debt | $ 17,180 | $ 27,966 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 77,002,976 | 74,801,825 |
Common stock, shares outstanding (in shares) | 73,623,312 | 71,605,708 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue: | ||||
Interest income | $ 80,122 | $ 71,361 | $ 250,954 | $ 188,726 |
Gain on sales of loans | 146 | 2,670 | 1,890 | 12,594 |
Other revenue | 3,398 | 3,340 | 10,365 | 8,168 |
Gross revenue | 83,666 | 77,371 | 263,209 | 209,488 |
Cost of revenue: | ||||
Provision for loan losses | 39,582 | 36,586 | 118,495 | 94,294 |
Funding costs | 11,330 | 8,452 | 34,223 | 22,548 |
Total cost of revenue | 50,912 | 45,038 | 152,718 | 116,842 |
Net revenue | 32,754 | 32,333 | 110,491 | 92,646 |
Operating expense: | ||||
Sales and marketing | 11,903 | 16,789 | 42,090 | 50,094 |
Technology and analytics | 11,748 | 15,050 | 41,960 | 42,894 |
Processing and servicing | 4,160 | 5,181 | 13,521 | 14,261 |
General and administrative | 9,440 | 12,375 | 30,917 | 34,233 |
Total operating expense | 37,251 | 49,395 | 128,488 | 141,482 |
Loss from operations | (4,497) | (17,062) | (17,997) | (48,836) |
Other expense: | ||||
Interest expense | (35) | (111) | (706) | (186) |
Total other expense | (35) | (111) | (706) | (186) |
Loss before provision for income taxes | (4,532) | (17,173) | (18,703) | (49,022) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | (4,532) | (17,173) | (18,703) | (49,022) |
Net loss attributable to noncontrolling interest | 458 | 539 | 2,073 | 1,920 |
Net loss attributable to On Deck Capital, Inc. common stockholders | $ (4,074) | $ (16,634) | $ (16,630) | $ (47,102) |
Net loss per share attributable to On Deck Capital, Inc. common shareholders: | ||||
Basic and diluted (in dollars per share) | $ (0.06) | $ (0.23) | $ (0.23) | $ (0.67) |
Weighted-average common shares outstanding: | ||||
Basic and diluted (in shares) | 73,272,085 | 70,971,895 | 72,613,221 | 70,750,037 |
Comprehensive loss: | ||||
Foreign currency translation adjustment | $ 246 | $ 210 | $ 682 | $ 393 |
Comprehensive loss | (4,286) | (16,963) | (18,021) | (48,629) |
Comprehensive loss attributable to noncontrolling interests | (111) | (95) | (307) | (177) |
Net loss attributable to noncontrolling interest | 458 | 539 | 2,073 | 1,920 |
Comprehensive loss attributable to On Deck Capital, Inc. common stockholders | $ (3,939) | $ (16,519) | $ (16,255) | $ (46,886) |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ (18,703) | $ (49,022) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Provision for loan losses | 118,495 | 94,294 |
Depreciation and amortization | 7,623 | 6,887 |
Amortization of debt issuance costs | 2,777 | 3,733 |
Stock-based compensation | 9,521 | 11,423 |
Amortization of net deferred origination costs | 36,419 | 25,837 |
Changes in servicing rights, at fair value | 1,440 | 4,074 |
Gain on sales of loans | (1,890) | (12,594) |
Unfunded loan commitment reserve | 227 | (405) |
Gain on extinguishment of debt | (312) | (940) |
Changes in operating assets and liabilities: | ||
Other assets | 2,106 | (1,221) |
Accounts payable | (2,353) | 1,386 |
Interest payable | 91 | 826 |
Accrued expenses and other liabilities | (7,641) | (844) |
Originations of loans held for sale | (44,489) | (238,077) |
Capitalized net deferred origination costs of loans held for sale | (1,128) | (8,074) |
Proceeds from sale of loans held for sale | 45,921 | 246,051 |
Principal repayments of loans held for sale | 1,039 | 6,189 |
Net cash provided by operating activities | 149,143 | 89,523 |
Cash flows from investing activities | ||
Change in restricted cash | (12,297) | (4,364) |
Purchases of property, equipment and software | (1,129) | (6,337) |
Capitalized internal-use software | (2,226) | (3,702) |
Originations of term loans and lines of credit, excluding rollovers into new originations | (1,302,889) | (1,333,192) |
Proceeds from sale of loans held for investment | 12,396 | 57,238 |
Payments of net deferred origination costs | (32,747) | (32,909) |
Principal repayments of term loans and lines of credit | 1,220,673 | 881,077 |
Other | 0 | (201) |
Purchase of loans | (13,730) | (6,672) |
Net cash used in investing activities | (131,949) | (449,062) |
Cash flows from financing activities | ||
Investments by noncontrolling interests | 3,443 | 0 |
Purchase of treasury shares | (864) | (576) |
Proceeds from exercise of stock options and warrants | 490 | 131 |
Issuance of common stock under employee stock purchase plan | 1,838 | 2,606 |
Payments of debt issuance costs | (3,228) | (4,655) |
Distribution to noncontrolling interest | (1,000) | 0 |
Net cash provided by (used in) financing activities | (33,280) | 285,236 |
Effect of exchange rate changes on cash and cash equivalents | 824 | 429 |
Net decrease in cash and cash equivalents | (15,262) | (73,874) |
Cash and cash equivalents at beginning of period | 79,554 | 159,822 |
Cash and cash equivalents at end of period | 64,292 | 85,948 |
Supplemental disclosure of other cash flow information | ||
Cash paid for interest | 31,467 | 16,282 |
Supplemental disclosures of non-cash investing and financing activities | ||
Stock-based compensation included in capitalized internal-use software | 154 | 1,025 |
Loans transferred from loans held for sale to loans held for investment | 0 | 861 |
Unpaid principal balance of term loans rolled into new originations | 220,925 | 200,637 |
Funding debt | ||
Cash flows from financing activities | ||
Proceeds from the issuance of funding debt | 133,318 | 606,051 |
Repayments of funding debt principal | (156,477) | (328,321) |
Corporate debt | ||
Cash flows from financing activities | ||
Proceeds from the issuance of funding debt | 24,200 | 10,000 |
Repayments of funding debt principal | $ (35,000) | $ 0 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies On Deck Capital, Inc.’s principal activity is providing financing to small businesses located throughout the United States as well as Canada and Australia, through term loans and lines of credit. We use technology and analytics to aggregate data about a small business and then quickly and efficiently analyze the creditworthiness of the business using our proprietary credit-scoring model. We originate most of the loans in our portfolio and also purchase loans from our issuing bank partner. We subsequently transfer most loans into one of our wholly-owned subsidiaries or, from time to time, depending upon market conditions and other factors, may sell them through OnDeck Marketplace ® . Basis of Presentation and Principles of Consolidation We prepare our condensed consolidated financial statements and footnotes in accordance with accounting principles generally accepted in the United States of America, or GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. All intercompany transactions and accounts have been eliminated in consolidation. Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. 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. We consolidate the financial position and results of operations of these entities. 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 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, loans purchased, 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. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 simplifies several aspects of accounting for share-based payment award transactions which include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. We adopted the new standard effective January 1, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements and no prior period amounts were adjusted. 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 and also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. The new standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations , which makes amendments to the new revenue standard on assessing whether an entity is a principal or an agent in a revenue transaction and impacts whether an entity reports revenue on a gross or net basis. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , which makes amendments to the new revenue standard regarding the identification of performance obligations and accounting for the license of intellectual property. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients , which makes amendments to the new revenue standard regarding assessing collectibility, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at the time of transition to the new standard. Each amendment has the same effective date and transition requirements as the new revenue recognition standard. We completed our initial assessment of the impact of the new revenue standard noting that revenue generated in accordance with ASC 310, Receivables , and ASC 860, Transfers and Servicing , is explicitly excluded from the scope of ASC 606. Accordingly, we have concluded that our interest income, gains on loan sales and loan servicing income will not be affected by the adoption of ASC 606. Marketing fees from our issuing bank partner as well as certain fees associated with OnDeck-as-a-Service will be within the scope of ASC 606. We will adopt the requirements of the new standard effective January 1, 2018 and intend to apply the modified retrospective method of adoption with the cumulative effect of adoption, if material, recognized at the date of initial application. We believe that ASC 606 will have little, if any, impact on the timing and amount of revenue recognition as compared to the current standard and that there will be no material impact upon adoption. In February 2016, the FASB issued ASU 2016-02, Leases , which creates ASC 842, Leases , and supersedes ASC 840, Leases . ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The new standard will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and is applied retrospectively. Early adoption is permitted. We are currently assessing the impact that the adoption of this standard will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . ASU 2016-13 will change the impairment model and how entities measure credit losses for most financial assets. The standard requires entities to use the new expected credit loss impairment model which will replace the incurred loss model used today. The new standard will be effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted, but not prior to December 15, 2018. We are currently assessing the impact that the adoption of this standard will have on our consolidated financial statements. |
Net Loss Per Common Share
Net Loss Per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Net Loss Per Common Share Basic and diluted net 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, 2017 2016 2017 2016 Numerator: Net loss $ (4,532 ) $ (17,173 ) $ (18,703 ) $ (49,022 ) Less: net loss attributable to noncontrolling interest 458 539 2,073 1,920 Net loss attributable to On Deck Capital, Inc. common stockholders $ (4,074 ) $ (16,634 ) $ (16,630 ) $ (47,102 ) Denominator: Weighted-average common shares outstanding, basic and diluted 73,272,085 70,971,895 72,613,221 70,750,037 Net loss per common share, basic and diluted $ (0.06 ) $ (0.23 ) $ (0.23 ) $ (0.67 ) Diluted loss per common share is the same as basic loss per common share for all periods presented because the effects of potentially dilutive items were anti-dilutive given our net losses. 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, 2017 2016 2017 2016 Anti-Dilutive Common Share Equivalents Warrants to purchase common stock 22,000 22,000 22,000 22,000 Restricted stock units 3,528,871 4,225,480 3,528,871 4,225,480 Stock options 8,227,736 11,997,551 8,227,736 11,997,551 Employee stock purchase program 34,820 40,706 34,820 40,706 Total anti-dilutive common share equivalents 11,813,427 16,285,737 11,813,427 16,285,737 The weighted-average exercise price for warrants to purchase 2,007,846 shares of common stock was $10.70 as of September 30, 2017 . For the three months and nine months ended September 30, 2017 , and 2016 a warrant to purchase 1,985,846 and 2,206,496 shares of common stock, respectively, was excluded from anti-dilutive common share equivalents as performance conditions had not been met. |
Loans Held for Investment and A
Loans Held for Investment and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Loans Held for Investment and Allowance for Loan Losses | Loans Held for Investment and Allowance for Loan Losses Loans held for investment consisted of the following as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Term loans $ 815,043 $ 864,066 Lines of credit 125,837 116,385 Total unpaid principal balance 940,880 980,451 Net deferred origination costs 16,323 19,994 Total loans held for investment $ 957,203 $ 1,000,445 During the nine months ended September 30, 2017, we paid $ 13.7 million to purchase term loans that we previously sold to a third party which are included in the unpaid principal balance of loans held for investment. We include both loans we originate and loans funded by our issuing bank partner and later purchased by us as part of our originations. During the three months ended September 30, 2017 and 2016 , we purchased such loans from our issuing bank partner in the amount of $101.6 million and $147.3 million , respectively. During the nine months ended September 30, 2017 and 2016 , we purchased such loans in the amount of $367.3 million and $381.0 million , respectively. The activity in the allowance for loan losses for the three months ended September 30, 2017 and 2016 consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 105,217 $ 73,849 $ 110,162 $ 53,311 Provision for loan losses 39,582 36,586 118,495 94,294 Loans charged off (45,257 ) (25,268 ) (135,958 ) (65,411 ) Recoveries of loans previously charged off 5,330 2,201 12,173 5,174 Allowance for loan losses at end of period $ 104,872 $ 87,368 $ 104,872 $ 87,368 When loans are charged-off, we may continue to attempt to recover amounts from the respective borrowers and guarantors, or pursue our rights through formal legal action. Alternatively, we may sell such 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, 2017 and 2016 , previously charged-off loans sold accounted for $2.4 million and $1.2 million , respectively, of recoveries of loans previously charged off. For the nine months ended September 30, 2017 and 2016 , previously charged-off loans sold accounted for $6.2 million and $3.1 million , respectively, of recoveries of loans previously charged off. As of September 30, 2017 and December 31, 2016 , our credit exposure related to the undrawn line of credit balances was $194.0 million and $164.5 million , respectively. The related reserve on unfunded loan commitments was $4.1 million and $3.9 million as of September 30, 2017 and December 31, 2016 , respectively. Net adjustments to the accrual for unfunded loan commitments are included in general and administrative expenses. The following table contains information, on a combined basis, regarding the unpaid principal balance of loans we originated and the amortized cost of loans purchased from third parties other than our issuing bank partner related to non-delinquent, paying and non-paying delinquent loans as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Non-delinquent loans $ 835,320 $ 890,297 Delinquent: paying (accrual status) 61,953 36,073 Delinquent: non-paying (non-accrual status) 43,607 54,081 Total $ 940,880 $ 980,451 The portion of the allowance for loan losses attributable to non-delinquent loans was $60.6 million and $59.5 million as of September 30, 2017 and December 31, 2016 , respectively, while the portion of the allowance for loan losses attributable to delinquent loans was $44.3 million and $50.7 million as of September 30, 2017 and December 31, 2016 , respectively. The following table shows an aging analysis of the unpaid principal balance related to loans held for investment by delinquency status as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 By delinquency status: Non-delinquent loans $ 835,320 $ 890,297 1-14 calendar days past due 34,724 25,899 15-29 calendar days past due 20,055 15,990 30-59 calendar days past due 20,975 22,677 60-89 calendar days past due 15,658 13,952 90 + calendar days past due 14,148 11,636 Total unpaid principal balance $ 940,880 $ 980,451 |
Servicing Rights
Servicing Rights | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Servicing Rights | Servicing Rights As of September 30, 2017 and December 31, 2016 , we serviced term loans owned by others with a remaining unpaid principal balance of $ 141.0 million and $222.0 million , respectively. During the three months ended September 30, 2017 and 2016 , we sold through OnDeck Marketplace loans with an unpaid principal balance of $5.3 million and $87.5 million , respectively, and during the nine months ended September 30, 2017 and 2016 , we sold loans with an unpaid principal balance of $55.5 million and $284.9 million , respectively. For the three months ended September 30, 2017 and 2016 , we earned $0.4 million and $0.3 million of servicing revenue, respectively. For the nine months ended September 30, 2017 and 2016 , we earned $1.3 million , and $0.9 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, 2017 (in thousands): Three Months Ended September 30, Nine Months Ended 2017 2016 2017 2016 Fair value at the beginning of period $ 701 $ 1,989 $ 1,131 $ 3,489 Addition: Servicing resulting from transfers of financial assets 275 717 938 2,272 Changes in fair value: Other changes in fair value (1) (347 ) (1,019 ) (1,440 ) (4,074 ) Fair value at the end of period (Level 3) $ 629 $ 1,687 $ 629 $ 1,687 ___________ (1) Represents changes due to collection of expected cash flows through September 30, 2017 and 2016 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our outstanding debt as of September 30, 2017 and December 31, 2016 (in thousands): Description Type Maturity Date Weighted Average Interest September 30, 2017 December 31, 2016 Funding Debt: ODAST II Agreement Securitization Facility May 2020 (1) 4.7% $ 250,000 $ 250,000 ODART Agreement Revolving March 2019 3.9% 123,498 133,767 RAOD Agreement Revolving November 2018 3.7% 71,119 99,985 ODAF I Agreement Revolving February 2020 (2) 8.5% 81,633 100,000 ODAC Agreement Revolving May 2019 8.5% 76,321 65,486 PORT II Agreement Revolving December 2018 3.7% 67,296 52,397 Other Agreements Various Various (3) Various 39,385 30,887 709,252 732,522 Deferred Debt Issuance Cost (6,254 ) (5,883 ) Total Funding Debt $ 702,998 $ 726,639 Corporate Debt: Square 1 Agreement Revolving October 2018 5.5% 17,200 28,000 Deferred Debt Issuance Cost (20 ) (34 ) Total Corporate Debt $ 17,180 $ 27,966 (1) The period during which remaining cash flow can be used to purchase additional loans expires April 2018. (2) The period during which new borrowings may be made under this facility expires in February 2019. (3) Maturity dates range from October 2017 to December 2018. Certain of our loans held for investment are pledged as collateral for borrowings in our funding debt facilities. These loans totaled $773.7 million and $886.4 million as of September 30, 2017 and December 31, 2016 , respectively. Our corporate debt facility is collateralized by substantially all of our assets. ODAF I Agreement On February 14, 2017, we entered into an amendment of the ODAF I Agreement which provided for an increase in the Lenders' revolving commitment from an aggregate amount of $100 million to $150 million , the extension of the revolving commitment termination date by approximately six months to February 14, 2019, and various technical, definitional, conforming and other changes. ODART Agreement On March 20, 2017, we entered into an amendment and restatement of the ODART Agreement which provided for a $50 million increase in the maximum amount of the Class A revolving loans and an increase up to $1.8 million in the maximum amount of the Class B revolving loans, thereby increasing the total facility size up to $214.1 million, an extension of the revolving commitment period during which ODART may utilize funding capacity under the Deutsche Bank Facility to March 20, 2019, a borrowing base advance rate for the Class A revolving loans of 85% and a borrowing base advance rate for the Class B revolving loans of 91% ; and various technical, definitional, conforming and other changes. ODAC Agreement On May 4, 2017, we renewed the ODAC facility with amended terms, which provided for an increase in the revolving commitments from $75 million to $100 million and an extension of the revolving commitment period to May 3, 2019. The interest rate decreased to LIBOR (minimum of 0.75% ) + 7.25% from LIBOR (minimum of 0.0% ) + 9.25% and the advance rate increased from 75% to 85% . RAOD Agreement On May 25, 2017, we renewed the RAOD facility with amended terms which provided for an extension of the revolving commitment period to November 22, 2018; a decrease in the interest rate to LIBOR + 2.5% from LIBOR + 3.0% ; and various technical, definitional, conforming and other changes. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
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 third-party service providers to assist in the valuation process. This determination requires significant judgments to be made. The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 Description Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 629 $ 629 Total assets $ — $ — $ 629 $ 629 December 31, 2016 Description Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 1,131 $ 1,131 Total assets $ — $ — $ 1,131 $ 1,131 There were no transfers between levels for the nine months ended September 30, 2017 or December 31, 2016 . The following tables presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurement as of September 30, 2017 and December 31, 2016 : September 30, 2017 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.09 % 0.14 % 0.12 % Renewal rate 42.72 % 56.07 % 52.74 % Default rate 10.22 % 11.00 % 10.84 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. December 31, 2016 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.09 % 0.14 % 0.11 % Renewal rate 46.20 % 56.54 % 50.14 % Default rate 10.32 % 10.75 % 10.48 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. 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 fair value of the servicing asset as of September 30, 2017 and December 31, 2016 given hypothetical changes in default rate and cost to service (in thousands): September 30, 2017 December 31, 2016 Servicing Assets Default rate assumption: Default rate increase of 25% $ (62 ) $ (98 ) Default rate increase of 50% $ (120 ) $ (188 ) Cost to service assumption: Cost to service increase by 25% $ (48 ) $ (60 ) Cost to service increase by 50% $ (95 ) $ (120 ) Assets and Liabilities Disclosed at Fair Value Because our loans held for investment, loans held for sale and fixed-rate debt are not measured at fair value, we are required to disclose their fair value in accordance with ASC 825. Due to the lack of transparency and 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 third-party service providers to assist in the valuation process. This determination requires significant judgments to be made. The following tables summarize the carrying value and fair value of our loans held for investment, loans held for sale and fixed-rate debt (in thousands): September 30, 2017 Description Carrying Value Fair Value Level 1 Level 2 Level 3 Assets : Loans held for investment $ 852,331 $ 934,867 $ — $ — $ 934,867 Total assets $ 852,331 $ 934,867 $ — $ — $ 934,867 Description Liabilities: Fixed-rate debt $ 276,324 $ 262,216 $ — $ — $ 262,216 Total fixed-rate debt $ 276,324 $ 262,216 $ — $ — $ 262,216 December 31, 2016 Description Carrying Value Fair Value Level 1 Level 2 Level 3 Assets : Loans held for investment $ 890,283 $ 979,780 $ — $ — $ 979,780 Loans held for sale 373 394 — 394 Total assets $ 890,656 $ 980,174 $ — $ — $ 980,174 Description Liabilities: Fixed-rate debt $ 280,886 $ 275,200 $ — $ — $ 275,200 Total fixed-rate debt $ 280,886 $ 275,200 $ — $ — $ 275,200 The following techniques and assumptions are used in estimating fair value: Loans held for investment and loans held for sale - Fair value is based on discounted cash flow models which contain certain unobservable inputs such as discount rate, renewal rate and default rate. Fixed-rate debt - Our ODAST II Agreement and certain other agreements are considered fixed-rate debt. Fair value of our fixed-rate debt is based on a discounted cash flow model with an unobservable input of discount rate. For our variable rate debt, carrying value approximates fair value. |
Noncontrolling Interest
Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest The following tables summarize changes in equity, including the equity attributable to noncontrolling interests, for the nine months ended September 30, 2017 and September 30, 2016 (in thousands): Nine Months Ended September 30, 2017 On Deck Capital, Inc.'s stockholders' equity Noncontrolling interest Total Balance as of January 1, 2017 $ 259,525 $ 4,072 $ 263,597 Net income (loss) (16,630 ) (2,073 ) (18,703 ) Stock based compensation 9,115 — 9,115 Exercise of options and warrants 490 — 490 Employee stock purchase plan 2,299 — 2,299 Cumulative translation adjustment 375 307 682 Purchase of shares for treasury (864 ) — (864 ) Investments by noncontrolling interests — 3,443 3,443 Return of equity to noncontrolling interest — (959 ) (959 ) Balance at September 30, 2017 254,310 4,790 259,100 Comprehensive loss: Net loss (16,630 ) (2,073 ) (18,703 ) Other comprehensive income (loss): Foreign currency translation adjustment 375 307 682 Comprehensive income (loss): $ (16,255 ) $ (1,766 ) $ (18,021 ) Nine Months Ended September 30, 2016 On Deck Capital, Inc.'s stockholders' equity Noncontrolling interest Total Balance as of January 1, 2016 $ 322,813 $ 6,609 $ 329,422 Net income (loss) (47,102 ) (1,920 ) (49,022 ) Stock based compensation 11,399 — 11,399 Exercise of options and warrants 168 — 168 Employee stock purchase plan 3,996 — 3,996 Cumulative translation adjustment 216 177 393 Purchase of shares for treasury (576 ) — (576 ) Balance at September 30, 2016 290,914 4,866 295,780 Comprehensive loss: Net loss (47,102 ) (1,920 ) (49,022 ) Other comprehensive income (loss): Foreign currency translation adjustment 216 177 393 Comprehensive income (loss): $ (46,886 ) $ (1,743 ) $ (48,629 ) In the third quarter of 2015, we acquired a 67% interest in an entity with the remaining 33% owned by an unrelated third party strategic partner for the purpose of providing small business loans to customers of the third party. We consolidate the financial position and results of operations of that entity. On June 29, 2017, OnDeck purchased the loans owned by that entity for an immaterial amount. That entity made a liquidating distribution to us of approximately $2 million and to the unrelated third party of approximately $1 million representing our respective proportionate share of the equity in that entity. The loan sale and distribution effectively ended the operations of that entity. No material gain or loss was recorded. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Options The following is a summary of option activity for the nine months ended September 30, 2017 : Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2017 11,426,296 $ 6.10 — — Granted 368,894 $ 4.13 — — Exercised (1,351,648 ) $ 0.87 — — Forfeited (1,095,455 ) $ 9.07 — — Expired (1,120,351 ) $ 11.36 — — Outstanding at September 30, 2017 8,227,736 $ 5.76 6.7 $ 13,831 Exercisable at September 30, 2017 5,948,010 $ 4.98 6.1 $ 13,510 Vested or expected to vest as of September 30, 2017 8,164,605 $ 5.75 6.7 $ 13,827 Total compensation cost related to nonvested option awards not yet recognized as of September 30, 2017 was $7.3 million and will be recognized over a weighted-average period of approximately 1.8 years. The aggregate intrinsic value of employee options exercised during the nine months ended September 30, 2017 and 2016 was $5.0 million and $2.4 million , respectively. Restricted Stock Units The following table summarizes our activities of Restricted Stock Units ("RSUs") and Performance Restricted Stock Units ("PRSUs") during the nine months ended September 30, 2017 : Number of RSUs Weighted-Average Grant Date Fair Value Unvested at January 1, 2017 3,888,768 $ 8.46 RSUs and PRSUs granted 1,791,690 $ 4.50 RSUs vested (546,671 ) $ 9.09 RSUs and PRSUs forfeited/expired (1,604,916 ) $ 8.15 Unvested at September 30, 2017 3,528,871 $ 6.30 Expected to vest after September 30, 2017 3,121,430 $ 6.36 As of September 30, 2017 , there was $16.3 million of unrecognized compensation cost related to unvested RSUs and PRSUs, which is expected to be recognized over the next 2.7 years. Stock-based compensation expense related to stock options, RSUs, PRSUs and Employee Stock Purchase Program are included in the following line items in our accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Sales and marketing $ 538 $ 920 $ 1,830 $ 2,749 Technology and analytics 499 793 1,824 2,437 Processing and servicing 99 227 429 781 General and administrative 1,920 1,821 5,438 5,456 Total $ 3,056 $ 3,761 $ 9,521 $ 11,423 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 exceed or 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. There is no single customer or group of customers that comprise a significant portion of our loan portfolio. Contingencies From time to time we are subject to 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. |
Organization and Summary of S15
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation We prepare our condensed consolidated financial statements and footnotes in accordance with accounting principles generally accepted in the United States of America, or GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. All intercompany transactions and accounts have been eliminated in consolidation. |
Reclassifications | Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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, loans purchased, 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. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 simplifies several aspects of accounting for share-based payment award transactions which include the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. We adopted the new standard effective January 1, 2017. The adoption of this standard did not have a material impact on our consolidated financial statements and no prior period amounts were adjusted. 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 and also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts. The new standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations , which makes amendments to the new revenue standard on assessing whether an entity is a principal or an agent in a revenue transaction and impacts whether an entity reports revenue on a gross or net basis. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , which makes amendments to the new revenue standard regarding the identification of performance obligations and accounting for the license of intellectual property. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients , which makes amendments to the new revenue standard regarding assessing collectibility, presentation of sales taxes, noncash consideration and completed contracts and contract modifications at the time of transition to the new standard. Each amendment has the same effective date and transition requirements as the new revenue recognition standard. We completed our initial assessment of the impact of the new revenue standard noting that revenue generated in accordance with ASC 310, Receivables , and ASC 860, Transfers and Servicing , is explicitly excluded from the scope of ASC 606. Accordingly, we have concluded that our interest income, gains on loan sales and loan servicing income will not be affected by the adoption of ASC 606. Marketing fees from our issuing bank partner as well as certain fees associated with OnDeck-as-a-Service will be within the scope of ASC 606. We will adopt the requirements of the new standard effective January 1, 2018 and intend to apply the modified retrospective method of adoption with the cumulative effect of adoption, if material, recognized at the date of initial application. We believe that ASC 606 will have little, if any, impact on the timing and amount of revenue recognition as compared to the current standard and that there will be no material impact upon adoption. In February 2016, the FASB issued ASU 2016-02, Leases , which creates ASC 842, Leases , and supersedes ASC 840, Leases . ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The new standard will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and is applied retrospectively. Early adoption is permitted. We are currently assessing the impact that the adoption of this standard will have on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . ASU 2016-13 will change the impairment model and how entities measure credit losses for most financial assets. The standard requires entities to use the new expected credit loss impairment model which will replace the incurred loss model used today. The new standard will be effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted, but not prior to December 15, 2018. We are currently assessing the impact that the adoption of this standard will have on our consolidated financial statements. |
Fair Value Measurement | Because our loans held for investment, loans held for sale and fixed-rate debt are not measured at fair value, we are required to disclose their fair value in accordance with ASC 825. Due to the lack of transparency and 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 third-party service providers to assist in the valuation process. This determination requires significant judgments to be made. 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 third-party service providers to assist in the valuation process. This determination requires significant judgments to be made. Loans held for investment and loans held for sale - Fair value is based on discounted cash flow models which contain certain unobservable inputs such as discount rate, renewal rate and default rate. Fixed-rate debt - Our ODAST II Agreement and certain other agreements are considered fixed-rate debt. Fair value of our fixed-rate debt is based on a discounted cash flow model with an unobservable input of discount rate. For our variable rate debt, carrying value approximates fair value. |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net 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, 2017 2016 2017 2016 Numerator: Net loss $ (4,532 ) $ (17,173 ) $ (18,703 ) $ (49,022 ) Less: net loss attributable to noncontrolling interest 458 539 2,073 1,920 Net loss attributable to On Deck Capital, Inc. common stockholders $ (4,074 ) $ (16,634 ) $ (16,630 ) $ (47,102 ) Denominator: Weighted-average common shares outstanding, basic and diluted 73,272,085 70,971,895 72,613,221 70,750,037 Net loss per common share, basic and diluted $ (0.06 ) $ (0.23 ) $ (0.23 ) $ (0.67 ) |
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, 2017 2016 2017 2016 Anti-Dilutive Common Share Equivalents Warrants to purchase common stock 22,000 22,000 22,000 22,000 Restricted stock units 3,528,871 4,225,480 3,528,871 4,225,480 Stock options 8,227,736 11,997,551 8,227,736 11,997,551 Employee stock purchase program 34,820 40,706 34,820 40,706 Total anti-dilutive common share equivalents 11,813,427 16,285,737 11,813,427 16,285,737 |
Loans Held for Investment and17
Loans Held for Investment and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Loans | Loans held for investment consisted of the following as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Term loans $ 815,043 $ 864,066 Lines of credit 125,837 116,385 Total unpaid principal balance 940,880 980,451 Net deferred origination costs 16,323 19,994 Total loans held for investment $ 957,203 $ 1,000,445 |
Schedule of Allowance for Loan Losses | The activity in the allowance for loan losses for the three months ended September 30, 2017 and 2016 consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 105,217 $ 73,849 $ 110,162 $ 53,311 Provision for loan losses 39,582 36,586 118,495 94,294 Loans charged off (45,257 ) (25,268 ) (135,958 ) (65,411 ) Recoveries of loans previously charged off 5,330 2,201 12,173 5,174 Allowance for loan losses at end of period $ 104,872 $ 87,368 $ 104,872 $ 87,368 |
Schedule of Non-delinquent and Delinquent Loans | The following table shows an aging analysis of the unpaid principal balance related to loans held for investment by delinquency status as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 By delinquency status: Non-delinquent loans $ 835,320 $ 890,297 1-14 calendar days past due 34,724 25,899 15-29 calendar days past due 20,055 15,990 30-59 calendar days past due 20,975 22,677 60-89 calendar days past due 15,658 13,952 90 + calendar days past due 14,148 11,636 Total unpaid principal balance $ 940,880 $ 980,451 The following table contains information, on a combined basis, regarding the unpaid principal balance of loans we originated and the amortized cost of loans purchased from third parties other than our issuing bank partner related to non-delinquent, paying and non-paying delinquent loans as of September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Non-delinquent loans $ 835,320 $ 890,297 Delinquent: paying (accrual status) 61,953 36,073 Delinquent: non-paying (non-accrual status) 43,607 54,081 Total $ 940,880 $ 980,451 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 (in thousands): Three Months Ended September 30, Nine Months Ended 2017 2016 2017 2016 Fair value at the beginning of period $ 701 $ 1,989 $ 1,131 $ 3,489 Addition: Servicing resulting from transfers of financial assets 275 717 938 2,272 Changes in fair value: Other changes in fair value (1) (347 ) (1,019 ) (1,440 ) (4,074 ) Fair value at the end of period (Level 3) $ 629 $ 1,687 $ 629 $ 1,687 ___________ (1) Represents changes due to collection of expected cash flows through September 30, 2017 and 2016 . |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following table summarizes our outstanding debt as of September 30, 2017 and December 31, 2016 (in thousands): Description Type Maturity Date Weighted Average Interest September 30, 2017 December 31, 2016 Funding Debt: ODAST II Agreement Securitization Facility May 2020 (1) 4.7% $ 250,000 $ 250,000 ODART Agreement Revolving March 2019 3.9% 123,498 133,767 RAOD Agreement Revolving November 2018 3.7% 71,119 99,985 ODAF I Agreement Revolving February 2020 (2) 8.5% 81,633 100,000 ODAC Agreement Revolving May 2019 8.5% 76,321 65,486 PORT II Agreement Revolving December 2018 3.7% 67,296 52,397 Other Agreements Various Various (3) Various 39,385 30,887 709,252 732,522 Deferred Debt Issuance Cost (6,254 ) (5,883 ) Total Funding Debt $ 702,998 $ 726,639 Corporate Debt: Square 1 Agreement Revolving October 2018 5.5% 17,200 28,000 Deferred Debt Issuance Cost (20 ) (34 ) Total Corporate Debt $ 17,180 $ 27,966 (1) The period during which remaining cash flow can be used to purchase additional loans expires April 2018. (2) The period during which new borrowings may be made under this facility expires in February 2019. (3) Maturity dates range from October 2017 to December 2018. |
Fair Value of Financial Instr20
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and December 31, 2016 (in thousands): September 30, 2017 Description Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 629 $ 629 Total assets $ — $ — $ 629 $ 629 December 31, 2016 Description Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 1,131 $ 1,131 Total assets $ — $ — $ 1,131 $ 1,131 |
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 as of September 30, 2017 and December 31, 2016 : September 30, 2017 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.09 % 0.14 % 0.12 % Renewal rate 42.72 % 56.07 % 52.74 % Default rate 10.22 % 11.00 % 10.84 % (1) Estimated cost of servicing a loan as a percentage of unpaid principal balance. December 31, 2016 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.09 % 0.14 % 0.11 % Renewal rate 46.20 % 56.54 % 50.14 % Default rate 10.32 % 10.75 % 10.48 % (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 fair value of the servicing asset as of September 30, 2017 and December 31, 2016 given hypothetical changes in default rate and cost to service (in thousands): September 30, 2017 December 31, 2016 Servicing Assets Default rate assumption: Default rate increase of 25% $ (62 ) $ (98 ) Default rate increase of 50% $ (120 ) $ (188 ) Cost to service assumption: Cost to service increase by 25% $ (48 ) $ (60 ) Cost to service increase by 50% $ (95 ) $ (120 ) |
Schedule of Assets and Liabilities Disclosed at Fair Value | The following tables summarize the carrying value and fair value of our loans held for investment, loans held for sale and fixed-rate debt (in thousands): September 30, 2017 Description Carrying Value Fair Value Level 1 Level 2 Level 3 Assets : Loans held for investment $ 852,331 $ 934,867 $ — $ — $ 934,867 Total assets $ 852,331 $ 934,867 $ — $ — $ 934,867 Description Liabilities: Fixed-rate debt $ 276,324 $ 262,216 $ — $ — $ 262,216 Total fixed-rate debt $ 276,324 $ 262,216 $ — $ — $ 262,216 December 31, 2016 Description Carrying Value Fair Value Level 1 Level 2 Level 3 Assets : Loans held for investment $ 890,283 $ 979,780 $ — $ — $ 979,780 Loans held for sale 373 394 — 394 Total assets $ 890,656 $ 980,174 $ — $ — $ 980,174 Description Liabilities: Fixed-rate debt $ 280,886 $ 275,200 $ — $ — $ 275,200 Total fixed-rate debt $ 280,886 $ 275,200 $ — $ — $ 275,200 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Equity | The following tables summarize changes in equity, including the equity attributable to noncontrolling interests, for the nine months ended September 30, 2017 and September 30, 2016 (in thousands): Nine Months Ended September 30, 2017 On Deck Capital, Inc.'s stockholders' equity Noncontrolling interest Total Balance as of January 1, 2017 $ 259,525 $ 4,072 $ 263,597 Net income (loss) (16,630 ) (2,073 ) (18,703 ) Stock based compensation 9,115 — 9,115 Exercise of options and warrants 490 — 490 Employee stock purchase plan 2,299 — 2,299 Cumulative translation adjustment 375 307 682 Purchase of shares for treasury (864 ) — (864 ) Investments by noncontrolling interests — 3,443 3,443 Return of equity to noncontrolling interest — (959 ) (959 ) Balance at September 30, 2017 254,310 4,790 259,100 Comprehensive loss: Net loss (16,630 ) (2,073 ) (18,703 ) Other comprehensive income (loss): Foreign currency translation adjustment 375 307 682 Comprehensive income (loss): $ (16,255 ) $ (1,766 ) $ (18,021 ) Nine Months Ended September 30, 2016 On Deck Capital, Inc.'s stockholders' equity Noncontrolling interest Total Balance as of January 1, 2016 $ 322,813 $ 6,609 $ 329,422 Net income (loss) (47,102 ) (1,920 ) (49,022 ) Stock based compensation 11,399 — 11,399 Exercise of options and warrants 168 — 168 Employee stock purchase plan 3,996 — 3,996 Cumulative translation adjustment 216 177 393 Purchase of shares for treasury (576 ) — (576 ) Balance at September 30, 2016 290,914 4,866 295,780 Comprehensive loss: Net loss (47,102 ) (1,920 ) (49,022 ) Other comprehensive income (loss): Foreign currency translation adjustment 216 177 393 Comprehensive income (loss): $ (46,886 ) $ (1,743 ) $ (48,629 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Activity | The following is a summary of option activity for the nine months ended September 30, 2017 : Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2017 11,426,296 $ 6.10 — — Granted 368,894 $ 4.13 — — Exercised (1,351,648 ) $ 0.87 — — Forfeited (1,095,455 ) $ 9.07 — — Expired (1,120,351 ) $ 11.36 — — Outstanding at September 30, 2017 8,227,736 $ 5.76 6.7 $ 13,831 Exercisable at September 30, 2017 5,948,010 $ 4.98 6.1 $ 13,510 Vested or expected to vest as of September 30, 2017 8,164,605 $ 5.75 6.7 $ 13,827 |
Schedule of Activities of RSUs | The following table summarizes our activities of Restricted Stock Units ("RSUs") and Performance Restricted Stock Units ("PRSUs") during the nine months ended September 30, 2017 : Number of RSUs Weighted-Average Grant Date Fair Value Unvested at January 1, 2017 3,888,768 $ 8.46 RSUs and PRSUs granted 1,791,690 $ 4.50 RSUs vested (546,671 ) $ 9.09 RSUs and PRSUs forfeited/expired (1,604,916 ) $ 8.15 Unvested at September 30, 2017 3,528,871 $ 6.30 Expected to vest after September 30, 2017 3,121,430 $ 6.36 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs, PRSUs and Employee Stock Purchase Program are included in the following line items in our accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Sales and marketing $ 538 $ 920 $ 1,830 $ 2,749 Technology and analytics 499 793 1,824 2,437 Processing and servicing 99 227 429 781 General and administrative 1,920 1,821 5,438 5,456 Total $ 3,056 $ 3,761 $ 9,521 $ 11,423 |
Net Loss Per Common Share (Basi
Net 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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net income (loss) | $ (4,532) | $ (17,173) | $ (18,703) | $ (49,022) |
Less: net loss attributable to noncontrolling interest | 458 | 539 | 2,073 | 1,920 |
Net loss attributable to On Deck Capital, Inc. common stockholders | $ (4,074) | $ (16,634) | $ (16,630) | $ (47,102) |
Denominator: | ||||
Weighted-average common shares outstanding, basic and diluted (in shares) | 73,272,085 | 70,971,895 | 72,613,221 | 70,750,037 |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.06) | $ (0.23) | $ (0.23) | $ (0.67) |
Net Loss Per Common Share (Anti
Net Loss Per Common Share (Anti-Dilutive Common Share Equivalents) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 11,813,427 | 16,285,737 | 11,813,427 | 16,285,737 |
Warrants to purchase | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 1,985,846 | 2,206,496 | 1,985,846 | 2,206,496 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 8,227,736 | 11,997,551 | 8,227,736 | 11,997,551 |
Common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 2,007,846 | |||
Common stock | Warrants to purchase | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 22,000 | 22,000 | 22,000 | 22,000 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 3,528,871 | 4,225,480 | 3,528,871 | 4,225,480 |
Employee stock purchase program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive common share equivalents (in shares) | 34,820 | 40,706 | 34,820 | 40,706 |
Weighted Average | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Price of shares entitled to purchase (in dollars per share) | $ 10.70 | $ 10.70 |
Loans Held for Investment and25
Loans Held for Investment and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total unpaid principal balance | $ 940,880 | $ 980,451 |
Net deferred origination costs | 16,323 | 19,994 |
Total loans held for investment | 957,203 | 1,000,445 |
Term loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total unpaid principal balance | 815,043 | 864,066 |
Lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total unpaid principal balance | $ 125,837 | $ 116,385 |
Loans Held for Investment and26
Loans Held for Investment and Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Originations of loans held for investment, modified | $ 13,730 | $ 6,672 | |||
Proceeds from sale of previously charged-off loans | $ 2,400 | $ 1,200 | 6,200 | 3,100 | |
Allowance for loan losses for non-delinquent loans | 60,600 | 60,600 | $ 59,500 | ||
Allowance for loan losses for delinquent loans | 44,300 | 44,300 | 50,700 | ||
Reserve for Off-balance Sheet Activities | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Related accrual for unfunded loan commitments | 4,100 | 4,100 | 3,900 | ||
Unused lines of Credit | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Off-balance sheet credit exposure | 194,000 | 194,000 | $ 164,500 | ||
Financial Institutions Borrower | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Originations of loans held for investment, modified | $ 101,600 | $ 147,300 | $ 367,300 | $ 381,000 |
Loans Held for Investment and27
Loans Held for Investment and Allowance for Loan Losses (Allowance Roll Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 105,217 | $ 73,849 | $ 110,162 | $ 53,311 |
Provision for loan losses | 39,582 | 36,586 | 118,495 | 94,294 |
Loans charged off | (45,257) | (25,268) | (135,958) | (65,411) |
Recoveries of loans previously charged off | 5,330 | 2,201 | 12,173 | 5,174 |
Allowance for loan losses at end of period | $ 104,872 | $ 87,368 | $ 104,872 | $ 87,368 |
Loans Held for Investment and28
Loans Held for Investment and Allowance for Loan Losses (Non-delinquent, Paying and Non-paying Delinquent Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Non-delinquent loans | $ 835,320 | $ 890,297 |
Delinquent: paying (accrual status) | 61,953 | 36,073 |
Delinquent: non-paying (non-accrual status) | 43,607 | 54,081 |
Total unpaid principal balance | $ 940,880 | $ 980,451 |
Loans Held for Investment and29
Loans Held for Investment and Allowance for Loan Losses (Aging Analysis of Term Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-delinquent loans | $ 835,320 | $ 890,297 |
Total unpaid principal balance | 940,880 | 980,451 |
1-14 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 34,724 | 25,899 |
15-29 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 20,055 | 15,990 |
30-59 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 20,975 | 22,677 |
60-89 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 15,658 | 13,952 |
90 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 14,148 | $ 11,636 |
Servicing Rights (Narrative) (D
Servicing Rights (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |||||
Serviced unpaid principal balance | $ 141 | $ 141 | $ 222 | ||
Unpaid principal balance for loans sold during period | 5.3 | $ 87.5 | 55.5 | $ 284.9 | |
Servicing revenue | $ 0.4 | $ 0.3 | $ 1.3 | $ 0.9 |
Servicing Rights (Fair Value of
Servicing Rights (Fair Value of Servicing Assets) (Details) - Term Loan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Fair value at the beginning of period | $ 701 | $ 1,989 | $ 1,131 | $ 3,489 |
Addition: | ||||
Servicing resulting from transfers of financial assets | 275 | 717 | 938 | 2,272 |
Changes in fair value: | ||||
Other changes in fair value | (347) | (1,019) | (1,440) | (4,074) |
Fair value at the end of period (Level 3) | $ 629 | $ 1,687 | $ 629 | $ 1,687 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ODAST II Agreement | Secured Debt | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at September 30, 2017 | 4.70% | |
Debt | $ 250,000 | $ 250,000 |
ODART Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at September 30, 2017 | 3.90% | |
Debt | $ 123,498 | 133,767 |
RAOD Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at September 30, 2017 | 3.70% | |
Debt | $ 71,119 | 99,985 |
ODAF I Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at September 30, 2017 | 8.50% | |
Debt | $ 81,633 | 100,000 |
ODAC Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at September 30, 2017 | 8.50% | |
Debt | $ 76,321 | 65,486 |
PORT II Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at September 30, 2017 | 3.70% | |
Debt | $ 67,296 | 52,397 |
Other Agreements | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt | 39,385 | 30,887 |
Funding debt | ||
Debt Instrument [Line Items] | ||
Debt | 709,252 | 732,522 |
Deferred Debt Issuance Cost | (6,254) | (5,883) |
Total | 702,998 | 726,639 |
Corporate debt | ||
Debt Instrument [Line Items] | ||
Total | $ 17,180 | 27,966 |
Corporate debt | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at September 30, 2017 | 5.50% | |
Debt | $ 17,200 | 28,000 |
Deferred Debt Issuance Cost | $ (20) | $ (34) |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | May 25, 2017 | May 24, 2017 | May 04, 2017 | May 03, 2017 | Mar. 20, 2017 | Feb. 14, 2017 | Sep. 30, 2017 | Feb. 13, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||||
Loans held for investment that are pledged as collateral | $ 773,700,000 | $ 886,400,000 | |||||||
ODAF I Agreement | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit | $ 150,000,000 | $ 100,000,000 | |||||||
Line of credit facility, extension in expiration period | 6 months | ||||||||
ODART Agreement - Class A | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity, increase | $ 50,000,000 | ||||||||
Borrowing base | 85.00% | ||||||||
ODART Agreement - Class B | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity, increase | $ 1,800,000 | ||||||||
Borrowing base | 91.00% | ||||||||
ODART Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit | $ 214,100,000 | ||||||||
ODAC Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing base | 75.00% | ||||||||
Amended ODAC Agreement Due May 2019 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing base | 85.00% | ||||||||
On Deck Asset Company, LLC | ODAC Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit | $ 75,000,000 | ||||||||
On Deck Asset Company, LLC | Amended ODAC Agreement Due May 2019 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit | $ 100,000,000 | ||||||||
London Interbank Offered Rate (LIBOR) | On Deck Asset Company, LLC | RAOD Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.50% | ||||||||
London Interbank Offered Rate (LIBOR) | On Deck Asset Company, LLC | Amended RAOD Agreement Due November 2018 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 3.00% | ||||||||
Minimum | London Interbank Offered Rate (LIBOR) | On Deck Asset Company, LLC | ODAC Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.00% | ||||||||
Minimum | London Interbank Offered Rate (LIBOR) | On Deck Asset Company, LLC | Amended ODAC Agreement Due May 2019 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.75% | ||||||||
Maximum | London Interbank Offered Rate (LIBOR) | On Deck Asset Company, LLC | ODAC Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 9.25% | ||||||||
Maximum | London Interbank Offered Rate (LIBOR) | On Deck Asset Company, LLC | Amended ODAC Agreement Due May 2019 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 7.25% |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 934,867 | 980,174 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 629 | 1,131 |
Total assets | 629 | 1,131 |
Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 0 | 0 |
Total assets | 0 | 0 |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 0 | 0 |
Total assets | 0 | 0 |
Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 629 | 1,131 |
Total assets | $ 629 | $ 1,131 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Servicing Rights) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Cost of service | 0.09% | 0.09% |
Renewal rate | 42.72% | 46.20% |
Default rate | 10.22% | 10.32% |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Cost of service | 0.14% | 0.14% |
Renewal rate | 56.07% | 56.54% |
Default rate | 11.00% | 10.75% |
Weighted Average | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Cost of service | 0.12% | 0.11% |
Renewal rate | 52.74% | 50.14% |
Default rate | 10.84% | 10.48% |
Fair Value of Financial Instr36
Fair Value of Financial Instruments (Servicing Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Default rate assumption, default rate increase of 25% | 25.00% | |
Default rate assumption, default rate increase of 50% | 50.00% | |
Cost to service assumption, cost to service increase by 25% | 25.00% | |
Cost to service assumption, cost to service increase by 50% | 50.00% | |
Default rate increase | $ (62) | $ (98) |
Default rate increase | (120) | (188) |
Cost to service increase | (48) | (60) |
Cost to service increase | $ (95) | $ (120) |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | $ 0 | $ 0 |
Loans held for sale | 0 | |
Total assets | 0 | 0 |
Fixed-rate debt | 0 | 0 |
Total fixed-rate debt | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 0 | 0 |
Total assets | 0 | 0 |
Fixed-rate debt | 0 | 0 |
Total fixed-rate debt | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 934,867 | 979,780 |
Loans held for sale | 394 | |
Total assets | 934,867 | 980,174 |
Fixed-rate debt | 262,216 | 275,200 |
Total fixed-rate debt | 262,216 | 275,200 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 852,331 | 890,283 |
Loans held for sale | 373 | |
Total assets | 852,331 | 890,656 |
Fixed-rate debt | 276,324 | 280,886 |
Total fixed-rate debt | 276,324 | 280,886 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 934,867 | 979,780 |
Loans held for sale | 394 | |
Total assets | 934,867 | 980,174 |
Fixed-rate debt | 262,216 | 275,200 |
Total fixed-rate debt | $ 262,216 | $ 275,200 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) - USD ($) $ in Thousands | Jun. 29, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 263,597 | $ 329,422 | |||
Net income (loss) | $ (4,532) | $ (17,173) | (18,703) | (49,022) | |
Stock based compensation | 9,115 | 11,399 | |||
Exercise of options and warrants | 490 | 168 | |||
Employee stock purchase plan | 2,299 | 3,996 | |||
Foreign currency translation adjustment | 246 | 210 | 682 | 393 | |
Purchase of shares for treasury | (864) | (576) | |||
Investments by noncontrolling interests | 3,443 | ||||
Return of equity to noncontrolling interest | $ (1,000) | (959) | |||
Ending balance | 259,100 | 295,780 | 259,100 | 295,780 | |
Comprehensive loss: | |||||
Net income (loss) | (4,532) | (17,173) | (18,703) | (49,022) | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | 246 | 210 | 682 | 393 | |
Comprehensive loss | (4,286) | (16,963) | (18,021) | (48,629) | |
On Deck Capital, Inc.'s stockholders' equity | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 259,525 | 322,813 | |||
Net income (loss) | (16,630) | (47,102) | |||
Stock based compensation | 9,115 | 11,399 | |||
Exercise of options and warrants | 490 | 168 | |||
Employee stock purchase plan | 2,299 | 3,996 | |||
Foreign currency translation adjustment | 375 | 216 | |||
Purchase of shares for treasury | (864) | (576) | |||
Investments by noncontrolling interests | 0 | ||||
Return of equity to noncontrolling interest | 0 | ||||
Ending balance | 254,310 | 290,914 | 254,310 | 290,914 | |
Comprehensive loss: | |||||
Net income (loss) | (16,630) | (47,102) | |||
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | 375 | 216 | |||
Comprehensive loss | (16,255) | (46,886) | |||
Noncontrolling interest | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 4,072 | 6,609 | |||
Net income (loss) | (2,073) | (1,920) | |||
Stock based compensation | 0 | 0 | |||
Exercise of options and warrants | 0 | 0 | |||
Employee stock purchase plan | 0 | 0 | |||
Foreign currency translation adjustment | 307 | 177 | |||
Purchase of shares for treasury | 0 | 0 | |||
Investments by noncontrolling interests | 3,443 | ||||
Return of equity to noncontrolling interest | (959) | ||||
Ending balance | $ 4,790 | $ 4,866 | 4,790 | 4,866 | |
Comprehensive loss: | |||||
Net income (loss) | (2,073) | (1,920) | |||
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | 307 | 177 | |||
Comprehensive loss | $ (1,766) | $ (1,743) |
Noncontrolling Interest - Narra
Noncontrolling Interest - Narrative (Details) - USD ($) $ in Thousands | Jun. 29, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Noncontrolling Interest [Abstract] | ||||
Ownership percentage by parent | 67.00% | |||
Ownership percentage by noncontrolling owners | 33.00% | |||
Proceeds from noncontrolling interests | $ 2,000 | $ 3,443 | $ 0 | |
Return of equity to noncontrolling interest | $ 1,000 | $ 959 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Option Activity) (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Number of Options | |
Beginning balance (in shares) | shares | 11,426,296 |
Granted (in shares) | shares | 368,894 |
Exercised (in shares) | shares | (1,351,648) |
Forfeited (in shares) | shares | (1,095,455) |
Expired (in shares) | shares | (1,120,351) |
Ending balance (in shares) | shares | 8,227,736 |
Exercisable, number of options (in shares) | shares | 5,948,010 |
Vested or expected to vest, number of options (in shares) | shares | 8,164,605 |
Weighted- Average Exercise Price | |
Beginning balance, weighted-average exercise price (in dollars per share) | $ / shares | $ 6.10 |
Granted (in dollars per share) | $ / shares | 4.13 |
Exercised (in dollars per share) | $ / shares | 0.87 |
Forfeited (in dollars per share) | $ / shares | 9.07 |
Expired (in dollars per share) | $ / shares | 11.36 |
Ending balance, weighted-average exercise price (in dollars per share) | $ / shares | 5.76 |
Exercisable, weighted-average exercise price (in dollars per share) | $ / shares | 4.98 |
Vested or expected to vest, weighted-average exercise price (in dollars per share) | $ / shares | $ 5.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Outstanding, weighted-average remaining contractual term | 6 years 8 months 19 days |
Outstanding, aggregate intrinsic value | $ | $ 13,831 |
Exercisable, weighted-average remaining contractual term | 6 years 29 days |
Exercisable, aggregate intrinsic value | $ | $ 13,510 |
Vested or expected to vest, weighted-average remaining contractual term | 6 years 8 months 19 days |
Vested or expected to vest, aggregate intrinsic value | $ | $ 13,827 |
Stock-Based Compensation (Optio
Stock-Based Compensation (Options) (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Compensation cost for nonvested option awards not yet recognized | $ 7.3 | |
Weighted-average recognition period | 1 year 9 months 18 days | |
Aggregate intrinsic value | $ 5 | $ 2.4 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of RSUs | |
Unvested, number of RSUs, beginning balance (in shares) | shares | 3,888,768 |
RSUs and PRSUs granted (in shares) | shares | 1,791,690 |
RSUs vested (in shares) | shares | (546,671) |
RSUs forfeited/expired (in shares) | shares | (1,604,916) |
Unvested, number of RSUs, ending balance (in shares) | shares | 3,528,871 |
Expected to vest after September 30, 2017 (in shares) | shares | 3,121,430 |
Weighted-Average Grant Date Fair Value | |
Unvested, weighted-average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 8.46 |
RSUs and PRSUs granted (in dollars per share) | $ / shares | 4.50 |
RSUs vested (in dollars per share) | $ / shares | 9.09 |
RSUs forfeited/expired (in dollars per share) | $ / shares | 8.15 |
Unvested, weighted-average grant date fair value, ending balance (in dollars per share) | $ / shares | 6.30 |
Expected to vest after September 30, 2017 (in dollars per share) | $ / shares | $ 6.36 |
Stock-Based Compensation (Res43
Stock-Based Compensation (Restricted Stock Units) (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Recognition period | 1 year 9 months 18 days |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 16.3 |
Recognition period | 2 years 8 months 12 days |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 3,056 | $ 3,761 | $ 9,521 | $ 11,423 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 538 | 920 | 1,830 | 2,749 |
Technology and analytics | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 499 | 793 | 1,824 | 2,437 |
Processing and servicing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 99 | 227 | 429 | 781 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,920 | $ 1,821 | $ 5,438 | $ 5,456 |