Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 74,028,096 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 232,319,356 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 71,362 | $ 79,554 |
Restricted cash | 43,462 | 44,432 |
Loans held for investment | 952,796 | 1,000,445 |
Less: Allowance for loan losses | (109,015) | (110,162) |
Loans held for investment, net | 843,781 | 890,283 |
Loans held for sale | 0 | 373 |
Property, equipment and software, net | 23,572 | 29,405 |
Other assets | 13,867 | 20,044 |
Total assets | 996,044 | 1,064,091 |
Liabilities: | ||
Accounts payable | 2,674 | 5,271 |
Interest payable | 2,330 | 2,122 |
Accrued expenses and other liabilities | 32,730 | 38,496 |
Total liabilities | 729,988 | 800,494 |
Commitments and contingencies | ||
Stockholders’ equity (deficit): | ||
Common stock—$0.005 par value, 1,000,000,000 shares authorized and 77,284,266 and 74,801,825 shares issued and 73,822,001 and 71,605,708 outstanding at December 31, 2017 and 2016, respectively. | 386 | 374 |
Treasury stock—at cost | (7,965) | (6,697) |
Additional paid-in capital | 492,509 | 477,526 |
Accumulated deficit | (222,833) | (211,299) |
Accumulated other comprehensive loss | (52) | (379) |
Total On Deck Capital, Inc. stockholders' equity | 262,045 | 259,525 |
Noncontrolling interest | 4,011 | 4,072 |
Total equity | 266,056 | 263,597 |
Total liabilities and equity | 996,044 | 1,064,091 |
Funding debt | ||
Liabilities: | ||
Debt | 684,269 | 726,639 |
Corporate debt | ||
Liabilities: | ||
Debt | $ 7,985 | $ 27,966 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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) | 77,284,266 | 74,801,825 |
Common stock, shares outstanding (in shares) | 73,822,001 | 71,605,708 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Interest income | $ 334,575,000 | $ 264,844,000 | $ 195,048,000 |
Gain on sales of loans | 2,485,000 | 14,411,000 | 53,354,000 |
Other revenue | 13,890,000 | 12,062,000 | 6,365,000 |
Gross revenue | 350,950,000 | 291,317,000 | 254,767,000 |
Cost of revenue: | |||
Provision for loan losses | 152,926,000 | 149,963,000 | 74,863,000 |
Funding costs | 45,435,000 | 32,448,000 | 20,244,000 |
Total cost of revenue | 198,361,000 | 182,411,000 | 95,107,000 |
Net revenue | 152,589,000 | 108,906,000 | 159,660,000 |
Operating expense: | |||
Sales and marketing | 52,786,000 | 67,011,000 | 60,575,000 |
Technology and analytics | 53,392,000 | 58,899,000 | 42,653,000 |
Processing and servicing | 18,076,000 | 19,719,000 | 13,053,000 |
General and administrative | 41,916,000 | 48,345,000 | 45,304,000 |
Total operating expense | 166,170,000 | 193,974,000 | 161,585,000 |
Income (loss) from operations | (13,581,000) | (85,068,000) | (1,925,000) |
Other expense: | |||
Interest expense | (764,000) | (414,000) | (306,000) |
Total other expense | (764,000) | (414,000) | (306,000) |
Loss before provision for income taxes | (14,345,000) | (85,482,000) | (2,231,000) |
Provision for income taxes | 0 | 0 | 0 |
Net income (loss) | (14,345,000) | (85,482,000) | (2,231,000) |
Net loss attributable to noncontrolling interest | 2,811,000 | 2,524,000 | 958,000 |
Net income (loss) attributable to On Deck Capital, Inc. common stockholders | $ (11,534,000) | $ (82,958,000) | $ (1,273,000) |
Net income (loss) per share attributable to On Deck Capital, Inc. common shareholders: | |||
Basic and diluted (in dollars per share) | $ (0.16) | $ (1.17) | $ (0.02) |
Weighted-average common shares outstanding: | |||
Basic and diluted (in shares) | 72,890,313 | 70,934,937 | 69,545,238 |
Comprehensive loss: | |||
Foreign currency translation adjustment | $ 594,000 | $ (20,000) | $ (678,000) |
Comprehensive loss | (13,751,000) | (85,502,000) | (2,909,000) |
Comprehensive loss attributable to noncontrolling interests | (267,000) | 13,000 | 306,000 |
Net loss attributable to noncontrolling interest | 2,811,000 | 2,524,000 | 958,000 |
Comprehensive loss attributable to On Deck Capital, Inc. common stockholders | $ (11,207,000) | $ (82,965,000) | $ (1,645,000) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | Noncontrolling interest |
Beginning balance (in shares) at Dec. 31, 2014 | 69,032,818 | |||||||
Beginning balance at Dec. 31, 2014 | $ 310,605 | $ 360 | $ 442,969 | $ (127,068) | $ (5,656) | $ 0 | $ 310,605 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 10,750 | 10,750 | 10,750 | |||||
Investments by noncontrolling interests | 7,873 | 7,873 | ||||||
Vesting of restricted stock units (in shares) | 88,124 | |||||||
Vesting of restricted stock units | 41 | $ 1 | 40 | 41 | ||||
Exercise of stock options (in shares) | 747,224 | |||||||
Exercise of stock options | 214 | $ 4 | 210 | 214 | ||||
Employee stock purchase plan (in shares) | 202,732 | |||||||
Employee stock purchase plan | 3,244 | $ 1 | 3,243 | 3,244 | ||||
Repurchases of common stock (in shares) | (10,690) | |||||||
Repurchases of common stock | (187) | (187) | (187) | |||||
Other comprehensive Income | (678) | (372) | (372) | (306) | ||||
Other | (209) | (209) | (209) | |||||
Net income (loss) | (2,231) | (1,273) | (1,273) | (958) | ||||
Ending balance (in shares) at Dec. 31, 2015 | 70,060,208 | |||||||
Ending balance at Dec. 31, 2015 | 329,422 | $ 366 | 457,003 | (128,341) | (5,843) | (372) | 322,813 | 6,609 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 17,385 | 17,385 | 17,385 | |||||
Issuance of common stock through vesting of restricted stock units and option exercises (in shares) | 1,237,969 | |||||||
Issuance of common stock through vesting of restricted stock units and option exercises | 203 | $ 6 | 197 | 203 | ||||
Employee stock purchase plan (in shares) | 456,008 | |||||||
Employee stock purchase plan | 2,943 | $ 2 | 2,941 | 2,943 | ||||
Repurchases of common stock (in shares) | (148,477) | |||||||
Repurchases of common stock | (854) | (854) | (854) | |||||
Other comprehensive Income | (20) | (7) | (7) | (13) | ||||
Net income (loss) | $ (85,482) | (82,958) | (82,958) | (2,524) | ||||
Ending balance (in shares) at Dec. 31, 2016 | 71,605,708 | 71,605,708 | ||||||
Ending balance at Dec. 31, 2016 | $ 263,597 | $ 374 | 477,526 | (211,299) | (6,697) | (379) | 259,525 | 4,072 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | 12,690 | 12,690 | 12,690 | |||||
Investments by noncontrolling interests | $ 3,440 | 3,440 | ||||||
Exercise of stock options (in shares) | 1,407,646 | |||||||
Issuance of common stock through vesting of restricted stock units and option exercises (in shares) | 2,014,497 | |||||||
Issuance of common stock through vesting of restricted stock units and option exercises | $ 464 | $ 10 | 454 | 464 | ||||
Employee stock purchase plan (in shares) | 467,944 | |||||||
Employee stock purchase plan | 1,841 | $ 2 | 1,839 | 1,841 | ||||
Repurchases of common stock (in shares) | (266,148) | |||||||
Repurchases of common stock | (1,268) | (1,268) | (1,268) | |||||
Return of equity to noncontrolling interests | (957) | (957) | ||||||
Other comprehensive Income | 594 | 327 | 327 | 267 | ||||
Net income (loss) | $ (14,345) | (11,534) | (11,534) | (2,811) | ||||
Ending balance (in shares) at Dec. 31, 2017 | 73,822,001 | 73,822,001 | ||||||
Ending balance at Dec. 31, 2017 | $ 266,056 | $ 386 | $ 492,509 | $ (222,833) | $ (7,965) | $ (52) | $ 262,045 | $ 4,011 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income (loss) | $ (14,345) | $ (85,482) | $ (2,231) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Provision for loan losses | 152,926 | 149,963 | 74,863 |
Depreciation and amortization | 9,951 | 9,462 | 6,508 |
Amortization of debt issuance costs | 3,806 | 4,538 | 2,837 |
Stock-based compensation | 12,515 | 15,915 | 11,582 |
Amortization of net deferred origination costs | 48,219 | 36,040 | 32,939 |
Changes in servicing rights, at fair value | 2,097 | 4,997 | 1,270 |
Gain on sales of loans | (2,485) | (14,411) | (53,354) |
Unfunded loan commitment reserve | 535 | (307) | 2,922 |
Gain on extinguishment of debt | (312) | (1,372) | (421) |
Changes in operating assets and liabilities: | |||
Other assets | 4,768 | (1,942) | (12,269) |
Accounts payable | (2,597) | 2,570 | 236 |
Interest payable | 208 | 1,365 | (62) |
Accrued expenses and other liabilities | (6,206) | 5,580 | 16,034 |
Originations of loans held for sale | (49,813) | (304,258) | (445,968) |
Capitalized net deferred origination costs of loans held for sale | (1,667) | (10,269) | (17,601) |
Proceeds from sale of loans held for sale | 51,463 | 314,627 | 489,364 |
Principal repayments of loans held for sale | 1,135 | 7,235 | 12,298 |
Net cash provided by operating activities | 210,198 | 134,251 | 118,947 |
Cash flows from investing activities | |||
Change in restricted cash | 970 | (5,969) | (9,015) |
Purchases of property, equipment and software | (1,340) | (6,640) | (13,692) |
Capitalized internal-use software | (2,919) | (4,645) | (4,197) |
Originations of term loans and lines of credit, excluding rollovers into new originations | (1,758,600) | (1,826,085) | (1,162,537) |
Proceeds from sale of loans held for investment | 24,826 | 75,787 | 177,014 |
Payments of net deferred origination costs | (44,778) | (47,082) | (28,353) |
Principal repayments of term loans and lines of credit | 1,639,117 | 1,232,272 | 872,551 |
Other | 0 | (201) | (186) |
Purchase of loans | (13,840) | (6,671) | 0 |
Net cash used in investing activities | (156,564) | (589,234) | (168,415) |
Cash flows from financing activities | |||
Investments by noncontrolling interests | 3,443 | 0 | 7,873 |
Purchase of treasury shares | (1,268) | (855) | 0 |
Proceeds from exercise of stock options and warrants | 454 | 197 | 251 |
Payments of initial public offering costs | 0 | 0 | (1,845) |
Redemption of common stock and warrants | 0 | 0 | (187) |
Issuance of common stock under employee stock purchase plan | 1,838 | 2,606 | 1,825 |
Payments of debt issuance costs | (4,108) | (6,281) | (1,690) |
Distribution to noncontrolling interest | (957) | 0 | 0 |
Net cash provided by (used in) financing activities | (62,496) | 374,728 | (10,468) |
Effect of exchange rate changes on cash and cash equivalents | 670 | (13) | (675) |
Net increase (decrease) in cash and cash equivalents | (8,192) | (80,268) | (60,611) |
Cash and cash equivalents at beginning of year | 79,554 | 159,822 | 220,433 |
Cash and cash equivalents at end of year | 71,362 | 79,554 | 159,822 |
Supplemental disclosure of other cash flow information | |||
Cash paid for interest | 41,918 | 24,778 | 15,394 |
Supplemental disclosures of non-cash investing and financing activities | |||
Loans transferred from loans held for sale to loans held for investment | 0 | 884 | 1,348 |
Stock-based compensation included in capitalized internal-use software | 175 | 1,470 | 877 |
Unpaid principal balance of term loans rolled into new originations | 306,250 | 273,453 | 265,933 |
Funding debt | |||
Cash flows from financing activities | |||
Proceeds from the issuance of debt | 177,581 | 752,443 | 212,562 |
Repayment of debt | (219,479) | (398,682) | (219,957) |
Corporate debt | |||
Cash flows from financing activities | |||
Proceeds from the issuance of debt | 34,200 | 25,300 | 2,700 |
Repayment of debt | $ (54,200) | $ 0 | $ (12,000) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization 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 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 an issuing bank partner. We subsequently transfer most of our loan volume into one of our wholly-owned subsidiaries or sell them through OnDeck Marketplace ® . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation We prepare our 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 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, or OnDeck Australia, with the remaining 45% owned by unrelated third parties. Additionally, 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. In the second quarter of 2017, we ceased the operations of this entity. 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. Segment Reporting Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. Based upon the way our CODM reviews financial information and makes operating decisions and considering that our CODM reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance, our operations constitute a single operating segment and one reportable segment. Substantially all revenue was generated and all assets were held in the United States during the years ended December 31, 2017 , 2016 and 2015 . 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 consolidated financial statements and accompanying notes. Significant estimates include allowance for loan losses, 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. Cash and Cash Equivalents Cash and cash equivalents include checking, savings and money market accounts. We consider all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Restricted Cash Restricted cash represents funds held in accounts as reserves on certain debt facilities and as collateral for issuing bank partner transactions. We have no ability to draw on such funds as long as they remain restricted under the applicable arrangements Loans Held for Investment and Loans Held for Sale Loans Held for Investment Loans held for investment consist of term loans and lines of credit that 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 which we may perfect by publicly filing a financing statement. Loans held for investment 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. 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. Direct origination costs in excess of loan origination fees received are included in the loan balance and for term loans are amortized over the life of the term loan using the effective interest method, while for lines of credit principal amounts drawn are amortized using the straight-line method over 6 months. 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 such subsequent term loan 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 (i) operating cash outflows on the Statement of Cash Flows if the renewal is designated to be sold or (ii) 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. 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. Purchase of Loans From time to time, we may purchase loans that we previously sold to third parties. We generally determine the price we are willing to pay for those loans through arm's-length negotiations and by using a discounted cash flow model that contains certain unobservable inputs such as discount rate, renewal rate and default rate, with adjustments that management believes a market participant would consider. We may also obtain third-party valuations of pools of loans we are considering purchasing. Upon purchase, loans are recorded at their acquisition price which represents fair value. The amortized cost of the purchased loans, which includes unpaid principal balances and any related premiums or discounts, when applicable, are included in loans held for investment on the consolidated balance sheets. Loans Held for Sale OnDeck Marketplace is our proprietary whole loan sale platform whereby we sell certain term loans to third-party institutional investors and retain the related servicing rights. We sell these whole loans to purchasers in exchange for a cash payment. A loan is initially classified as held for sale 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 cost and a 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 is 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. To determine the fair value of loans held for sale 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. 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. The initial recognition includes both servicing rights resulting from transfers of financial assets and when applicable, changes in inputs or assumptions used in the valuation model. 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. 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 a basis for determining 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 with respect to our loans held for investment 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 forecasted 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, 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. Accrual for Unfunded Loan Commitments and Off-Balance Sheet Credit Exposures For our lines of credit, 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. Accrual for Third-Party Representations We have made certain representations to third parties that purchase loans through OnDeck Marketplace . Our obligations under those representations are not secured by escrows or similar arrangements. However, if we determine it is probable that representations may be breached, we could be required to accrue certain liabilities. Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans, such as loan repurchase obligations or excess loss indemnification obligations, would be accrued if probable and estimable in accordance with ASC 450, Contingencies . There are no restricted assets related to these agreements. As of December 31, 2017 and 2016 , we have not incurred any significant losses and/or material liability for probable obligations requiring accrual. Nonaccrual Loans, Restructured Loans and Charged-Off Loans We consider a loan to be delinquent when the daily or weekly payments are one day past due. We place loans on nonaccrual status and stop accruing interest income on loans that are delinquent and non-paying. Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in our judgment, will continue to make periodic principal and interest payments as scheduled. Certain borrowers who have experienced or are expected to experience financial difficulty may not be able to maintain their regularly scheduled and contractually required payments. Following discussions with us, such borrowers may temporarily make reduced payments and/or make payments on a less frequent basis than contractually required. As part of our effort to maximize loan recoverability and as a temporary accommodation to the borrower, we may voluntarily forebear from pursuing our legal rights and remedies under the applicable loan agreement, which loan agreement we do not modify and which remains in full force and effect. Generally, after the 90 th day of delinquency, we will make an initial assessment of whether an individual loan should be charged off based on payment status and information gathered through collection efforts. A loan is charged off when we determine it is probable that we will be unable to collect all of the remaining principal payments. Deferred Debt Issuance Costs and Debt We borrow from various lenders to finance our lending activities and general corporate operations. Costs incurred in connection with financings, such as banker fees, origination fees and legal fees, are classified as deferred debt issuance costs. We capitalize these costs and amortize them over the expected life of the related financing agreements. The related fees are expensed immediately upon early extinguishment of the debt. In a debt modification, the initial issuance costs and any additional fees incurred as a result of the modification are deferred over the term of the modified agreement. Deferred debt issuance costs are amortized using the effective interest method for term debt and the straight-line method for revolving lines of credit. Interest expense and the amortization of deferred debt issuance costs incurred on debt used to fund loan originations are presented as funding costs in our consolidated statements of operations. Interest expense and the amortization of deferred debt issuance costs incurred on debt used to fund general corporate operations are recorded as interest expense, a component of other expense, in our consolidated statements of operations. Deferred debt issuance costs are presented as a reduction of debt in accordance with ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Refer to Recently Adopted Accounting Standards for additional details. Property, Equipment and Software Property, equipment and software consists of computer and office equipment, purchased software, capitalized internal-use software costs and leasehold improvements. Property, equipment and software are carried at cost less accumulated depreciation and amortization. Depreciation and amortization expense are recognized over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the terms of the respective leases or the estimated lives of the improvements. In accordance with ASC Subtopic 350-40, Internal-Use Software, we begin to capitalize the costs to develop software for our website and other internal uses when the following criteria are met: (i) the preliminary project stage is completed (ii) we have authorized funding (iii) it is probable that the project will be completed and (iv) we conclude that the software will perform the function intended. Capitalized internal-use software costs primarily include salaries and payroll-related costs for employees directly involved in the development efforts, software licenses acquired and fees paid to outside consultants. Software development costs incurred prior to meeting the criteria for capitalization and costs incurred for training and maintenance are expensed as incurred. Certain upgrades and enhancements to existing software that result in additional functionality are capitalized. Capitalized software development costs are amortized using the straight-line method over their expected useful lives, which is generally three years. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying values of those assets may not be recoverable. An impairment loss will be recognized only if the carrying value of a long-lived asset is not recoverable and exceeds its fair market value. If there is an indication of impairment, we will estimate the future cash flows (undiscounted and without interest charges) expected from the use of the asset and its eventual disposition. If an impairment is determined to exist, the impairment loss will be measured as the amount by which the carrying value of the asset exceeds its fair value and recorded in the period the determination is made. Assets held for sale are reported at the lower of the carrying amount or fair value, less costs to sell. Revenue Recognition Interest Income We generate revenue primarily through interest and origination fees earned on loans originated and held to maturity. For term loans, we recognize interest and origination fee revenue over the terms of the underlying loans using the effective interest method. For lines of credit, we recognize interest income when earned in accordance with terms of the contract. Origination fees collected but not yet recognized as revenue are netted with direct origination costs and presented as a component of loans in our 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 We account for OnDeck Marketplace 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 years ended December 31, 2017 , 2016 and 2015 , 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. A change in inputs or assumptions used in the valuation model related to servicing assets or liabilities is recognized as a component of gain on sales of loans. Other Revenue Other revenue includes servicing revenue related to loans serviced for others, fair value adjustments to servicing rights, platform fees, monthly fees charged to customers for our line of credit, and marketing fees earned from our issuing bank partner, which are recognized as the related services are provided. Stock-Based Compensation In accordance with ASC Topic 718, Compensation—Stock Compensation , all stock-based compensation provided to employees, including stock options and restricted stock units, or RSU's, 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). The fair value of stock options is estimated using the Black-Scholes-Merton Option Pricing Model. 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. RSU's issued to employees and directors 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 be forfeited. Estimated forfeitures are subsequently adjusted to reflect actual forfeiture. Options typically vest at a rate of 25% after one year from the vesting commencement date and then monthly over an additional three -year period. The options expire ten years from the grant date or, for terminated employees, 90 days after the employee’s termination date. RSUs typically vest at a rate of 25% annually, over four annual vesting periods. Compensation expense for the fair value of the options and RSUs at their grant date is recognized ratably over the vesting period. Performance-Based Restricted Stock Units In the third quarter of 2016, the Compensation Committee of the Board of Directors approved performance-based compensation awards to certain members of executive management and other key personnel. The performance-based compensation awards consist of performance-based restricted stock units, or PRSUs, to be settled solely in shares of our common stock, as well as performance units, to be settled solely in cash. The value of the awards is based on achieving a target performance level established by the Compensation Committee and the award value may increase or decrease based on actual performance relative to the target level. The compensation expense related to the PRSUs and performance units will be recorded on a straight-line basis with the expense being adjusted prospectively as our estimate of the expected performance is reassessed each reporting period. Advertising Costs Advertising costs are expensed as incurred and are included within sales and marketing in our consolidated statements of operations. For the years ended December 31, 2017 , 2016 and 2015 , advertising costs totaled $15.0 million , $20.1 million and $22.5 million , respectively. Foreign Currency In accordance with ASC 830, Foreign Currency Matters, we have determined the functional currency of our subsidiary, OnDeck Australia, is the Australian dollar. We translate the financial statements of this subsidiary to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenue and expenses. Translation gains and losses are recorded in accumulated other comprehensive loss as a component of stockholders' equity. As of December 31, 2017 and 2016 , we recorded a translation gain of $327,000 and a loss of $7,000 , respectively. For the years ended December 31, 2017 , 2016 , and 2015, the remeasurement of transactions designated in currencies other than our functional currency resulted in a gain of $1.6 million and $0.2 million , and a loss of $1.3 million respectively, and was recorded within general and administrative expenses in our consolidated statements of operations. Income Taxes In accordance with ASC 740, Income Taxes , we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets to the amount we believe is more likely than not to be realized. Uncertain tax positions are recognized only when we believe it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. We recognize interest and penalties, if any, related to uncertain tax positions in income tax expense. We did not have any accrued interest or penalties associated with uncertain tax positions as of December 31, 2017 and 2016 . We file income tax returns in the United States for federal, state and local jurisdictions. We are no longer subject to U.S. federal, certain states, and local income tax examinations for years prior to 2014, with certain states no longer subject for years prior to 2013, although carryforward attributes that were generated prior to 2014 may still be adjusted upon examination by the Internal Revenue Service if used in a future period. Fair Value Measurement In accordance with ASC 820, Fair Value Measurement , we use a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows: Level 1: Quoted prices in active markets or liabilities in active markets for identical assets or liabilities, accessible by us at the measurement date. Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices. Level 3: Unobservable inputs for assets or liabilities for which there is little or no market data, which require us to develop our own assumptions. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flows, or similar techniques, which incorporate our own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. Basic and Diluted Net Loss per Common Share Basic net loss per common share is computed by dividing net loss attributable to On Deck Capital, Inc. common stockholders by the weighted-average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted net loss per common share includes the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” or “if converted” methods, as applicable. Diluted net loss per common share is computed by using the weighted-average number of common shares outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options, warrants and unvested restricted stock. Due to net losses for the years ended December 31, 2017 , 2016 and 2015 , basic and diluted net loss per common share were the same, as the effect of potentially dilutive securities was anti-dilutive. Recently Adopted Accounting Standards In April 2015, the FASB issued Accounting Standards Update, or ASU, 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The ASU simplifies the presentation of debt issuance costs by requiring that unamortized debt issuance costs be presented as a reduction of the applicable liability rather than an asset. The guidance was effective on January 1, 2016 and was required to be applied retrospectively. Accordingly, $4.2 million of deferred debt issuance costs on the consolidated balance sheet at December 31, 2015 has been reclassified to be presented as a reduction of the carrying value of the associated debt to conform with the current period presentation. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 will simplify 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. The new guidance will be effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted in any interim or annual period. The adoption of this guidance did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted as of December 31, 2017 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 guidance 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 Li |
Net Loss Per Common Share
Net Loss Per Common Share | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2017 2016 2015 Numerator: Net loss $ (14,345 ) $ (85,482 ) $ (2,231 ) Less: net loss attributable to noncontrolling interest 2,811 2,524 958 Net loss attributable to On Deck Capital, Inc. common stockholders $ (11,534 ) $ (82,958 ) $ (1,273 ) Denominator: Weighted-average common shares outstanding, basic and diluted 72,890,313 70,934,937 69,545,238 Net loss per common share, basic and diluted $ (0.16 ) $ (1.17 ) $ (0.02 ) 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: Year Ended December 31, 2017 2016 2015 Anti-Dilutive Common Share Equivalents Warrants to purchase common stock 22,000 22,000 309,792 Restricted stock units 3,342,640 3,888,768 1,853,452 Stock options 7,918,853 11,426,296 10,711,321 Employee stock purchase program 127,487 243,208 — Total anti-dilutive common share equivalents 11,410,980 15,580,272 12,874,565 The weighted-average exercise price for warrants to purchase 2,007,846 shares of common stock was $10.70 as of December 31, 2017 . For the year ended December 31, 2017 and 2016 , a warrant to purchase 1,985,846 shares of common stock was excluded from anti-dilutive common share equivalents as performance conditions had not been met. |
Interest Income
Interest Income | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift, Interest [Abstract] | |
Interest Income | Interest Income Interest income was comprised of the following components for the years ended December 31 (in thousands): 2017 2016 2015 Interest on unpaid principal balance $ 382,983 $ 300,713 $ 227,579 Interest on deposits 132 171 408 Amortization of net deferred origination costs (48,540 ) (36,040 ) (32,939 ) Total interest income $ 334,575 $ 264,844 $ 195,048 |
Loans Held for Investment, Allo
Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale | Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale Loans Held for Investment and Allowance for Loan Losses Loans held for investment consisted of the following as of December 31 (in thousands): 2017 2016 Term loans $ 804,227 $ 864,066 Lines of credit 132,012 116,385 Total unpaid principal balance 936,239 980,451 Net deferred origination costs 16,557 19,994 Total loans held for investment $ 952,796 $ 1,000,445 During the twelve months ended December 31, 2017, we paid $ 13.8 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 partners and later purchased by us as part of our originations. During the years ended December 31, 2017 , 2016 and 2015 we purchased loans in the amount of $523.0 million , $534.1 million and $231.7 million , respectively. The activity in the allowance for loan losses for the years ended December 31 consisted of the following (in thousands): 2017 2016 2015 Balance at January 1 $ 110,162 $ 53,311 $ 49,804 Provision for loan losses 152,926 149,963 74,863 Loans charged off (171,272 ) (100,382 ) (78,485 ) Recoveries of loans previously charged off 17,199 7,270 7,129 Allowance for loan losses at December 31 $ 109,015 $ 110,162 $ 53,311 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 years ended December 31, 2017 , 2016 and 2015 , previously charged-off loans sold accounted for $8.3 million , $4.4 million and $5.5 million , respectively, of recoveries of loans previously charged off. As of December 31, 2017 and December 31, 2016 , our off-balance sheet credit exposure related to the undrawn line of credit balances was $204.6 million and $164.5 million , respectively. The related reserve on unfunded loan commitments was $4.4 million and $3.9 million as of December 31, 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 December 31 (in thousands): 2017 2016 Non-delinquent loans $ 850,060 $ 890,297 Delinquent: paying (accrual status) 49,252 36,073 Delinquent: non-paying (non-accrual status) 36,927 54,081 Total $ 936,239 $ 980,451 The portion of the allowance for loan losses attributable to non-delinquent loans was $74.0 million and $59.5 million as of December 31, 2017 and December 31, 2016 , respectively, while the portion of the allowance for loan losses attributable to delinquent loans was $35.0 million and $50.7 million as of December 31, 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 December 31 (in thousands): 2017 2016 By delinquency status: Non-delinquent loans $ 850,060 $ 890,297 1-14 calendar days past due 23,611 25,899 15-29 calendar days past due 12,528 15,990 30-59 calendar days past due 22,059 22,677 60-89 calendar days past due 12,809 13,952 90 + calendar days past due 15,172 11,636 Total unpaid principal balance $ 936,239 $ 980,451 Loans Held for Sale Loans held for sale consisted of the following as of December 31 (in thousands): 2017 2016 Loans held for sale $ — $ 370 Net deferred origination costs — 3 Loans held for sale, net $ — $ 373 |
Servicing Rights
Servicing Rights | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Servicing Rights | Servicing Rights As of December 31, 2017 and 2016 , we serviced term loans we sold with a remaining unpaid principal balance of $ 181.0 million and $222.0 million , respectively. During the years ended December 31, 2017 , 2016 and 2015 , we sold through OnDeck Marketplace loans with an unpaid principal balance of $72.5 million , $368.3 million and $600.0 million , respectively. For the years ended December 31, 2017 , 2016 and 2015 , we earned $1.1 million , $1.2 million and $3.5 million of servicing revenue, respectively. The following table summarizes the activity related to the fair value of our servicing assets for the year ended December 31 : 2017 2016 Fair value at the beginning of period $ 1,131 $ 3,489 Addition: Servicing resulting from transfers of financial assets 1,120 2,690 Changes in fair value: Change in inputs or assumptions used in the valuation model — — Other changes in fair value (1) (2,097 ) (5,048 ) Fair value at the end of period (Level 3) $ 154 $ 1,131 ___________ (1) Represents changes due to collection of expected cash flows through December 31, 2017 and 2016 . |
Property, Equipment and Softwar
Property, Equipment and Software, net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Software, net | Property, Equipment and Software, net Property, equipment and software, net, consisted of the following as of December 31 (in thousands): Estimated Useful Life 2017 2016 Computer/office equipment 36 months $ 15,419 $ 15,671 Capitalized internal-use software 36 months 24,784 21,789 Leasehold improvements Life of lease 18,336 18,025 Total property, equipment and software, at cost 58,539 55,485 Less accumulated depreciation and amortization (34,967 ) (26,080 ) Property, equipment and software, net $ 23,572 $ 29,405 Amortization expense on capitalized internal-use software costs was $4.9 million , $4.2 million and $2.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, and is included as a component of technology and analytics in our consolidated statements of operations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes our outstanding debt as of December 31 (in thousands): Description Type Maturity Date Weighted Average Interest December 31, 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 4.1% 102,058 133,767 RAOD Agreement Revolving November 2018 4.9% 86,478 99,985 ODAF Agreement Revolving February 2020 (2) 8.6% 75,000 100,000 ODAC Agreement Revolving May 2019 8.7% 62,350 65,486 PORT II Agreement Revolving December 2018 3.9% 63,851 52,397 Other Agreements Various Various (3) Various 50,706 30,887 690,443 732,522 Deferred Debt Issuance Cost (6,174 ) (5,883 ) Total Funding Debt 684,269 726,639 Corporate Debt: Square 1 Agreement Revolving October 2018 5.5% 8,000 28,000 Deferred Debt Issuance Cost (15 ) (34 ) Total Corporate Debt $ 7,985 $ 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 debt facility expires in February 2019. (3) Maturity dates range from January 2018 through November 2020. Certain of our loans held for investment are pledged as collateral for borrowings in our funding debt facilities. These loans totaled $852.3 million and $886.4 million as of December 31, 2017 and 2016 , respectively. Our corporate debt facility is collateralized by substantially all of our assets. During the three years ended December 31, 2017 , the following significant activity took place related to our debt facilities: PORT Agreement 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 was to mature in June 2017. In December 2016, we voluntarily paid down the funding debt outstanding with this facility in conjunction with the entering into of the PORT II Agreement. The remaining unamortized deferred issuance costs related to the PORT Agreement of $0.2 million were written-off and are included within Funding Costs. RAOD Agreement 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 February 26, 2016, the RAOD Agreement was amended to increase the borrowing capacity from $50 million to $100 million . 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. ODAC Agreement On May 22, 2015, amendments were made to the ODAC Agreement to, among other items, extend the commitment termination date to May 2017 and to provide for the utilization of up to the entire ODAC facility solely for the financing of our line of credit. In addition to other changes, this facility is now exclusively used to our line of credit. On April 28, 2016, we amended the ODAC Agreement to increase the revolving commitment from an aggregate amount of $50 million to $75 million , increase the interest rate from LIBOR plus 8.25% to LIBOR plus 9.25% , increase in the borrowing base advance rate from 70% to 75% and make certain other related changes. 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% . ODAST II Agreement On May 17, 2016, we, through a wholly-owned subsidiary, OnDeck Asset Securitization Trust II LLC, or the ODAST II, entered into a $250 million asset-backed securitization facility with Deutsche Bank Trust Company Americas, as indenture trustee. The notes under the facility were issued in two classes; Class A in the amount of $211.5 million and Class B in the amount of $38.5 million . The Class A and Class B notes bear interest at a fixed rate of 4.21% and 7.63% , respectively. Interest only payments began in June 2016 and are payable monthly through May 2018. Beginning June 2018, monthly payments will consist of both principal and interest with a final maturity of May 2020. Concurrent with the closing of the ODAST II securitization, we voluntarily prepaid in full $175 million of funding debt outstanding from our prior asset-backed securitization transaction, or the ODAST Agreement. ODART Agreement On October 7, 2015 an amendment was made to the ODART Agreement which included an amendment for a decrease in Class A interest rate to the applicable cost of funds rate plus 2.25% , the extension of the commitment termination date of the ODART Agreement by approximately one year to September 15, 2017, the extension of the date on or prior to which early termination fees may be payable in the event of a termination or other permanent reduction of the revolving commitments by approximately one year to May 15, 2017, and the ability to make certain partial commitment terminations without early termination fees, the ability to use up to a specified portion of the facility for financing of our weekly pay term loans and, the termination of the Class B revolving lending commitment, the effect of which is to reduce the total facility capacity to $150 million ; the termination was made at ODART's request and consented to by the Class B Revolving Lender. The ODART Second A&R Credit Agreement also contemplates the reintroduction, at ODART's election and administrative agent's consent, of one or more Class B Revolving Lending resulting in Class B commitments up to $17.6 million , thereby potentially restoring the facility size to up to $167.6 million . The borrowing base advance rate for reintroduced Class B revolving loans is 95% and the interest rate will be LIBOR plus 7.00% . On June 17, 2016 an amendment was made to the ODART Agreement, to reintroduce Class B revolving loans from the Class B Revolving Lender resulting in additional funding capacity of $12.4 million , thereby increasing the total revolving commitment from $150 million to $162.4 million , establishing a Class B interest rate equal to LIBOR plus 8% , a borrowing base advance rate for the Class B revolving loans of 92% and make certain other changes. 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. ODAF Agreement On August 19, 2016, we, through a wholly-owned subsidiary, entered into a $100 million asset-backed revolving debt facility, or the ODAF Agreement. The commitment bears interest at LIBOR plus 7.25% , has a borrowing base advance rate of up to 80% and matures in August 2019. 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. PORT II Agreement On December 8, 2016, we, through a wholly-owned subsidiary, entered into a $200 million (consisting of $125 million Class A commitments, with the Class A Lenders having the ability to, in their sole discretion and on an uncommitted basis, make additional Class A loans of up to $75 million ) asset-backed revolving debt facility, or the PORT II Agreement. The commitment bears interest at a specified base rate, generally the daily CP rate, plus 2.25% (Class A), has a borrowing base advance rate of 83% and matures in December 2018. Concurrent with the closing of the PORT II revolving debt facility, we voluntarily prepaid in full funding debt outstanding from another asset-backed revolving debt facility, the PORT Agreement. Square 1 Agreement We amended and restated this revolving debt facility in November 2014 to (i) extend its maturity date to October 2015; (ii) decrease the interest rate to prime plus 1.25% , with a floor of 4.5% per annum; and (iii) increase our borrowing capacity to $20 million . On October 2, 2015 an amendment was made to the Square 1 Agreement which extended the date of maturity of our corporate revolving line of credit from October 2015 to October 2016, added a minimum monthly interest payment and modified certain financial and portfolio covenants. In November 2016 we amended the Square 1 Agreement to increase the revolving commitment from an aggregate amount of $20 million to $30 million while also extending the maturity to October 2018. As of December 31, 2017 , future maturities of our borrowings were as follows (in thousands): 2018 $ 277,642 2019 297,938 2020 122,863 2021 — Thereafter — Total $ 698,443 |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax Our financial statements include a total income tax expense of $0 on net losses of $14.3 million , $85.5 million and $2.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. A reconciliation of the difference between the provision for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows for the years ended December 31 : 2017 2016 2015 Federal statutory rate 34.0 % 34.0 % 34.0 % Effect of: Change in valuation allowance (34.5 )% (36.5 )% (28.0 )% Federal effect of change in state and local tax valuation allowance 0.5 % 2.5 % (6.0 )% Income tax provision effective rate — % — % — % The significant components of our deferred tax asset were as follows as of December 31 (in thousands): 2017 2016 Deferred tax assets relating to: Net operating loss carryforwards $ 20,476 $ 25,880 Loan loss reserve 27,186 40,897 Imputed interest income 424 800 Deferred rent 1,892 2,670 Miscellaneous items 45 174 Total gross deferred tax assets 50,023 70,421 Deferred tax liabilities: Internally developed software 3,912 2,224 Property, equipment and software 4,242 6,747 Origination costs 4,078 7,417 Miscellaneous items 40 430 Total gross deferred tax liabilities 12,272 16,818 Net deferred tax asset 37,751 53,603 Less: valuation allowance (37,751 ) (53,603 ) Net deferred tax asset less valuation allowance $ — $ — In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income, and planned tax 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, we believe it is more likely than not that we will not realize the benefits of these deductible differences in the future. Therefore, we have recorded a full valuation allowance on our net deferred tax asset. 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 . Prior to January 1, 2016, we had not recognized any uncertain tax positions. During the year ended December 31, 2016 , 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. 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 year ended December 31, 2017 . 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. Our net operating loss carryforwards for federal income tax purposes were approximately $82.1 million , $69.7 million and $50.6 million at December 31, 2017 , 2016 and 2015 , respectively, and, if not utilized, will expire at various dates beginning in 2029. State net operating loss carryforwards were $81.3 million , $68.9 million and $49.8 million at December 31, 2017 , 2016 and 2015 , respectively. Net operating loss carryforwards and tax credit carryforwards reflected above may be limited due to historical and future ownership changes. Recently Enacted Tax Reform Bill On December 22, 2017, the Tax Cuts and Jobs Act, or Tax Act, was signed into U.S. law and included numerous provisions that significantly revise existing tax law. The Tax Act introduces changes, including the reduction of the corporate income statutory tax rate from 35% to 21% for tax years beginning after December 31, 2017, an increase in bonus depreciation and the deductibility of certain depreciable assets, limitations on the deductibility of net interest expense, changes to net operating loss carryover and carryback rules, the transition of U.S international taxation from a worldwide tax system to a territorial system, and reductions in the amount of executive pay that could qualify as a tax deduction. The Company is currently evaluating the impact of the Tax Act on its consolidated financial statements. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, or SAB 118, to assist registrants in accounting for the tax effects of the Tax Act specifically when an accounting analysis of the Tax Act is incomplete for registrant's financial statements for the reporting period in which the Tax Act became law. SAB 118 permits us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. In accordance with SAB 118, we have been able to reasonably estimate the effect the change in the corporate tax rate will have on our deferred tax asset. At December 31, 2017, our deferred tax asset has been provisionally remeasured and adjusted by $18.8 million from $56.6 million to $37.8 million . Because a full valuation allowance has been and will continue to be recorded against our deferred tax asset, an amount corresponding to the reduction of the deferred tax asset has been released from the valuation allowance. These two adjustments offset each other and result in no net impact to our results of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 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 December 31 (in thousands): 2017 Description Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 154 $ 154 Total assets $ — $ — $ 154 $ 154 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 year ended December 31, 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 December 31 : December 31, 2017 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.04 % 0.13 % 0.12 % Renewal rate 41.06 % 51.83 % 49.59 % Default rate 10.63 % 10.92 % 10.70 % (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 December 31, 2017 and December 31, 2016 given a hypothetical changes in default rate and cost to service (in thousands): December 31, 2017 December 31, 2016 Servicing Assets Default rate assumption: Default rate increase of 25% $ (40 ) $ (98 ) Default rate increase of 50% $ (76 ) $ (188 ) Cost to service assumption: Cost to service increase by 25% $ (63 ) $ (60 ) Cost to service increase by 50% $ (126 ) $ (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): December 31, 2017 Description Carrying Value Fair Value Level 1 Level 2 Level 3 Assets : Loans held for investment $ 843,781 $ 932,343 $ — $ — $ 932,343 Loans held for sale — — — — Total assets $ 843,781 $ 932,343 $ — $ — $ 932,343 Description Liabilities: Fixed-rate debt $ 300,706 $ 293,512 $ — $ — $ 293,848 Total fixed-rate debt $ 300,706 $ 293,512 $ — $ — $ 293,848 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. |
Stock-Based Compensation and Em
Stock-Based Compensation and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Employee Benefit Plans | Stock-Based Compensation and Employee Benefit Plans Equity incentives are currently issued to employees and directors in the form of stock options and RSUs under our 2014 Equity Incentive Plan. Our 2007 Stock Option Plan was terminated in connection with our Initial Public Offering (IPO). Accordingly, no additional equity incentives are issuable under this plan although it continues to govern outstanding awards granted thereunder. Additionally, we offer an Employee Stock Purchase Plan through the 2014 Employee Stock Purchase Plan and a 401(k) plan to employees. Options The following table summarizes the assumptions used for estimating the fair value of stock options granted under our equity plans for the years ended December 31 : 2017 2016 2015 Risk-free interest rate 2.32% - 2.42% 1.40% - 2.54% 1.65% - 2.13% Expected term (years) 5.0 5.0 - 6.0 5.5 - 6.0 Expected volatility 42% - 44% 46% - 54% 41% - 47% Dividend yield —% —% —% Weighted-average grant date fair value per share $1.66 $2.65 $5.70 The following is a summary of option activity for the year ended December 31, 2017 : Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2017 11,426,296 $ 6.10 — — Granted 368,894 $ 4.13 — — Exercised (1,407,646 ) $ 0.85 — — Forfeited (1,310,438 ) $ 8.55 — — Expired (1,158,253 ) $ 11.45 — — Outstanding at December 31, 2017 7,918,853 $ 5.75 6.4 $ 17,792 Exercisable at December 31, 2017 6,080,899 $ 5.16 5.8 $ 16,989 Vested or expected to vest as of December 31, 2017 7,876,541 $ 5.75 6.4 $ 17,778 Total compensation cost related to nonvested option awards not yet recognized as of December 31, 2017 was $5.6 million and will be recognized over a weighted-average period of approximately 1.6 years. The aggregate intrinsic value of employee options exercised during the years ended December 31, 2017 , 2016 and 2015 was $5.3 million , $3.0 million and $10.8 million , respectively. Restricted Stock Units The following table summarizes our activities of RSUs and PRSUs during the year ended December 31, 2017 : Number of RSUs Weighted-Average Grant Date Fair Value Unvested at January 1, 2017 3,888,768 $ 8.46 RSUs and PRSUs granted 2,074,077 $ 4.63 RSUs vested (770,664 ) $ 8.50 RSUs forfeited/expired (1,849,541 ) $ 7.84 Unvested at December 31, 2017 3,342,640 $ 6.18 Expected to vest after December 31, 2017 2,843,933 $ 6.31 During the year ended December 31, 2016, in addition to granting RSUs, we also granted 194,207 PRSUs. For each of the three annual performance periods, one-third (1/3) of the total PRSUs may vest depending upon achievement of performance-based targets. Participants have the ability to earn up to 150% of the baseline award based on certain levels of achievement in excess of the relevant target performance level or could earn less than the baseline award, or nothing at all, based on certain levels of achievement below the relevant target performance level. Measurement of performance is based on a 12 -month period ending June 30 of each year. The first tranche did not vest due to the performance-based targets not being achieved. The second tranche was granted with a grant date fair value of $4.67 during the year ended December 31, 2017. Performance goals have yet to be established for the twelve-month performance period ending June 30, 2019. As of December 31, 2017 , there was $14.3 million of unrecognized compensation cost related to unvested RSUs and PRSUs, which is expected to be recognized over a weighted-average period of 2.6 years . Employee Stock Purchase Plan As of December 31, 2017 , there was $0.1 million of unrecognized compensation expense related to the ESPP. The assumptions used to calculate our Black-Scholes-Merton Option Pricing Model for each stock purchase right granted under the ESPP were as follows for the year ended December 31 : 2017 2016 2015 Risk-free interest rate 1.17 % 0.39 % 0.27 % Expected term (years) 0.50 0.50 0.50 Expected volatility 37 % 52 % 42 % Dividend yield — % — % — % Stock-based compensation expense related to stock options, RSUs, PRSUs and the ESPP are included in the following line items in our accompanying consolidated statements of operations for the year ended December 31 (in thousands): 2017 2016 2015 Sales and marketing $ 2,429 $ 4,002 $ 3,081 Technology and analytics 2,300 3,422 2,582 Processing and servicing 483 869 544 General and administrative 7,303 7,622 5,375 Total $ 12,515 $ 15,915 $ 11,582 401(k) Plan We maintain a 401(k) defined contribution plan that covers substantially all of our employees. Participants may elect to contribute their annual compensation up to the maximum limit imposed by federal tax law. During the years ended December 31, 2017 , 2016 and 2015 we had $1.2 million , $1.4 million , and $1.0 million in employer related match expense, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments Operating Leases In January 2013, we entered into an operating lease in Virginia for office space, which was amended in January 2015 (as amended, “Virginia Lease”) to extend the term of the lease and rent additional space. The Virginia Lease calls for monthly rental payments of $65,000 , subject to escalation, and provides for a rent holiday of approximately six months and an aggregate $1 million leasehold improvement incentive. During 2014 and 2015, we amended the lease of our corporate headquarters in New York City (as amended, “New York Lease”) to extend the term of the lease and rent additional space. We will occupy additional spaces under the New York Lease incrementally, as spaces becomes available, at which time we will incur additional rent payments. For all spaces delivered to us under the New York Lease as of December 31, 2017 , our average monthly fixed rent payment will be approximately $0.5 million , subject to escalations. We are entitled to rent credits aggregating $3.8 million and a tenant improvement allowance not to exceed $5.8 million for all spaces delivered to us under the New York Lease as of December 31, 2017 . The New York Lease is expected to terminate in December 2026. In April 2015, we provided notice of termination to the landlord of one of our office spaces in Denver, Colorado (“Original Denver Lease”) resulting in a termination fee of $0.4 million , which was included in general and administrative expenses for the year ended December 31, 2015. The lease on that office space ("Original Denver Lease") expired in January 2016. In June 2015, we entered into a sublease in Denver, Colorado ("New Denver Lease") as the subtenant. The New Denver Lease calls for an average monthly fixed rent payment of approximately $144,000 . The New Denver Lease also provides for a four -month rent holiday and a tenant improvement allowance not to exceed $2.6 million and is scheduled to expire in April 2026. In May 2017, we entered into an operating lease in Australia for office space. The Australia lease calls for an average monthly fixed rent payment of approximately $34,000 and is scheduled to expire in July 2020. Certain of our leases have free or escalating rent payment provisions. We recognize rent expense under such leases on a straight-line basis over the term of the lease and record the difference between the rent paid and the straight-line rent expense as deferred rent within other liabilities on our consolidated balance sheets. Improvements funded by tenant allowances are recorded as leasehold improvements and depreciated over the improvements’ estimated useful lives or the remaining lease term, whichever is shorter. The incentive is recorded as deferred rent and amortized over the term of the lease. Rent expense incurred totaled $7.1 million , $7 million , and $4.3 million for the years ended December 31, 2017, 2016, and 2015. Lease Commitments At December 31, 2017 , future minimum lease commitments under operating and capital leases, net of sublease income of $1.4 million , for the remaining terms of the operating leases were as follows (in thousands): For the years ending December 31, 2018 $ 8,633 2019 9,225 2020 9,270 2021 9,192 2022 8,915 Thereafter 33,497 Total $ 78,732 In February 2018, we terminated an operating lease for certain property in New York. Taking such termination into effect, our minimum lease commitments would be reduced, in total, by approximately $17.5 million . 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. 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. Concentrations of Revenue For the year ended December 31, 2015, we had one group of customers that accounted for approximately 13% of total revenue, which was recognized through gain on sales of loans. The top three states in which we, or our issuing bank partner, originated loans were California , Florida , and Texas , representing approximately 14% , 9% , and 9% of our total loan originations, respectively, in both 2017 and 2016 . These geographic concentrations expose us to risks associated with localized natural disasters, local political or economic forces as well as state-level regulatory risks. 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. |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) The following table contains selected unaudited financial data for each quarter of 2017 and 2016 . The unaudited information should be read in conjunction with our financial statements and related notes included elsewhere in this report. We believe that the following unaudited information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 Gross revenues 87,741 83,666 86,651 92,892 81,829 77,371 69,502 62,615 Net revenue 42,098 32,754 42,302 35,435 16,260 32,333 28,857 31,456 Net income (loss) 4,358 (4,532 ) (2,569 ) (11,602 ) (36,460 ) (17,173 ) (18,708 ) (13,141 ) Net loss attributable to common stockholders 5,096 (4,074 ) (1,498 ) (11,058 ) (35,857 ) (16,634 ) (17,895 ) (12,573 ) Basic 0.07 (0.06 ) (0.02 ) (0.15 ) (0.50 ) (0.23 ) (0.25 ) (0.18 ) Diluted 0.07 (0.06 ) (0.02 ) (0.15 ) (0.50 ) (0.23 ) (0.25 ) (0.18 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events Subsequent to December 31, 2017 , we terminated our lease agreement with respect to a portion of our office space in New York. In connection with the termination, we expect to record a net charge of approximately $3.2 million in the quarter ending March 31, 2018 including a surrender fee of approximately $2.6 million . The net charge will include the surrender fee and approximately $4.0 million related to the impairment of leasehold improvements and other fixed assets in the surrendered space, which will be partially offset by other deferred credits. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Years Ended December 31, 2017 , 2016 and 2015 Description Balance at Beginning of Period Charged to Cost and Expenses Charged to Other Accounts Deductions— Write offs Balance at End of Period (in thousands) Allowance for Loan Losses: 2017 110,162 152,926 17,199 (171,272 ) 109,015 2016 53,311 149,963 7,270 (100,382 ) 110,162 2015 49,804 74,863 7,129 (78,485 ) 53,311 Deferred tax asset valuation allowance: 2017 53,603 (826 ) 3,779 (18,805 ) 37,751 2016 31,978 (24,209 ) 45,834 — 53,603 2015 26,090 (2,514 ) 8,402 — 31,978 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | We prepare our 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. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. Based upon the way our CODM reviews financial information and makes operating decisions and considering that our CODM reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance, our operations constitute a single operating segment and one reportable segment. Substantially all revenue was generated and all assets were held in the United States during the years ended December 31, 2017 , 2016 and 2015 . |
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 consolidated financial statements and accompanying notes. Significant estimates include allowance for loan losses, 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include checking, savings and money market accounts. We consider all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash represents funds held in accounts as reserves on certain debt facilities and as collateral for issuing bank partner transactions. We have no ability to draw on such funds as long as they remain restricted under the applicable arrangements |
Loans Held for Investment and Loans Held for Sale | Loans Held for Investment and Loans Held for Sale Loans Held for Investment Loans held for investment consist of term loans and lines of credit that 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 which we may perfect by publicly filing a financing statement. Loans held for investment 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. 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. Direct origination costs in excess of loan origination fees received are included in the loan balance and for term loans are amortized over the life of the term loan using the effective interest method, while for lines of credit principal amounts drawn are amortized using the straight-line method over 6 months. 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 such subsequent term loan 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 (i) operating cash outflows on the Statement of Cash Flows if the renewal is designated to be sold or (ii) 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. 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. Purchase of Loans From time to time, we may purchase loans that we previously sold to third parties. We generally determine the price we are willing to pay for those loans through arm's-length negotiations and by using a discounted cash flow model that contains certain unobservable inputs such as discount rate, renewal rate and default rate, with adjustments that management believes a market participant would consider. We may also obtain third-party valuations of pools of loans we are considering purchasing. Upon purchase, loans are recorded at their acquisition price which represents fair value. The amortized cost of the purchased loans, which includes unpaid principal balances and any related premiums or discounts, when applicable, are included in loans held for investment on the consolidated balance sheets. Loans Held for Sale OnDeck Marketplace is our proprietary whole loan sale platform whereby we sell certain term loans to third-party institutional investors and retain the related servicing rights. We sell these whole loans to purchasers in exchange for a cash payment. A loan is initially classified as held for sale 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 cost and a 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 is 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. To determine the fair value of loans held for sale 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. 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. The initial recognition includes both servicing rights resulting from transfers of financial assets and when applicable, changes in inputs or assumptions used in the valuation model. 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. 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 a basis for determining 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 with respect to our loans held for investment 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 forecasted 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, 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. Accrual for Unfunded Loan Commitments and Off-Balance Sheet Credit Exposures For our lines of credit, 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. Accrual for Third-Party Representations We have made certain representations to third parties that purchase loans through OnDeck Marketplace . Our obligations under those representations are not secured by escrows or similar arrangements. However, if we determine it is probable that representations may be breached, we could be required to accrue certain liabilities. Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans, such as loan repurchase obligations or excess loss indemnification obligations, would be accrued if probable and estimable in accordance with ASC 450, Contingencies . There are no restricted assets related to these agreements. As of December 31, 2017 and 2016 , we have not incurred any significant losses and/or material liability for probable obligations requiring accrual. Nonaccrual Loans, Restructured Loans and Charged-Off Loans We consider a loan to be delinquent when the daily or weekly payments are one day past due. We place loans on nonaccrual status and stop accruing interest income on loans that are delinquent and non-paying. Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in our judgment, will continue to make periodic principal and interest payments as scheduled. Certain borrowers who have experienced or are expected to experience financial difficulty may not be able to maintain their regularly scheduled and contractually required payments. Following discussions with us, such borrowers may temporarily make reduced payments and/or make payments on a less frequent basis than contractually required. As part of our effort to maximize loan recoverability and as a temporary accommodation to the borrower, we may voluntarily forebear from pursuing our legal rights and remedies under the applicable loan agreement, which loan agreement we do not modify and which remains in full force and effect. Generally, after the 90 th day of delinquency, we will make an initial assessment of whether an individual loan should be charged off based on payment status and information gathered through collection efforts. A loan is charged off when we determine it is probable that we will be unable to collect all of the remaining principal payments. |
Purchase of Loans | Purchase of Loans From time to time, we may purchase loans that we previously sold to third parties. We generally determine the price we are willing to pay for those loans through arm's-length negotiations and by using a discounted cash flow model that contains certain unobservable inputs such as discount rate, renewal rate and default rate, with adjustments that management believes a market participant would consider. We may also obtain third-party valuations of pools of loans we are considering purchasing. Upon purchase, loans are recorded at their acquisition price which represents fair value. The amortized cost of the purchased loans, which includes unpaid principal balances and any related premiums or discounts, when applicable, are included in loans held for investment on the consolidated balance sheets. |
Deferred Debt Issuance Costs and Debt | Deferred Debt Issuance Costs and Debt We borrow from various lenders to finance our lending activities and general corporate operations. Costs incurred in connection with financings, such as banker fees, origination fees and legal fees, are classified as deferred debt issuance costs. We capitalize these costs and amortize them over the expected life of the related financing agreements. The related fees are expensed immediately upon early extinguishment of the debt. In a debt modification, the initial issuance costs and any additional fees incurred as a result of the modification are deferred over the term of the modified agreement. Deferred debt issuance costs are amortized using the effective interest method for term debt and the straight-line method for revolving lines of credit. Interest expense and the amortization of deferred debt issuance costs incurred on debt used to fund loan originations are presented as funding costs in our consolidated statements of operations. Interest expense and the amortization of deferred debt issuance costs incurred on debt used to fund general corporate operations are recorded as interest expense, a component of other expense, in our consolidated statements of operations. Deferred debt issuance costs are presented as a reduction of debt in accordance with ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Refer to Recently Adopted Accounting Standards for additional details. |
Property, Equipment and Software | Property, Equipment and Software Property, equipment and software consists of computer and office equipment, purchased software, capitalized internal-use software costs and leasehold improvements. Property, equipment and software are carried at cost less accumulated depreciation and amortization. Depreciation and amortization expense are recognized over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the terms of the respective leases or the estimated lives of the improvements. In accordance with ASC Subtopic 350-40, Internal-Use Software, we begin to capitalize the costs to develop software for our website and other internal uses when the following criteria are met: (i) the preliminary project stage is completed (ii) we have authorized funding (iii) it is probable that the project will be completed and (iv) we conclude that the software will perform the function intended. Capitalized internal-use software costs primarily include salaries and payroll-related costs for employees directly involved in the development efforts, software licenses acquired and fees paid to outside consultants. Software development costs incurred prior to meeting the criteria for capitalization and costs incurred for training and maintenance are expensed as incurred. Certain upgrades and enhancements to existing software that result in additional functionality are capitalized. Capitalized software development costs are amortized using the straight-line method over their expected useful lives, which is generally three years. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying values of those assets may not be recoverable. An impairment loss will be recognized only if the carrying value of a long-lived asset is not recoverable and exceeds its fair market value. If there is an indication of impairment, we will estimate the future cash flows (undiscounted and without interest charges) expected from the use of the asset and its eventual disposition. If an impairment is determined to exist, the impairment loss will be measured as the amount by which the carrying value of the asset exceeds its fair value and recorded in the period the determination is made. Assets held for sale are reported at the lower of the carrying amount or fair value, less costs to sell. |
Revenue Recognition | Revenue Recognition Interest Income We generate revenue primarily through interest and origination fees earned on loans originated and held to maturity. For term loans, we recognize interest and origination fee revenue over the terms of the underlying loans using the effective interest method. For lines of credit, we recognize interest income when earned in accordance with terms of the contract. Origination fees collected but not yet recognized as revenue are netted with direct origination costs and presented as a component of loans in our 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 We account for OnDeck Marketplace 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 years ended December 31, 2017 , 2016 and 2015 , 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. A change in inputs or assumptions used in the valuation model related to servicing assets or liabilities is recognized as a component of gain on sales of loans. Other Revenue Other revenue includes servicing revenue related to loans serviced for others, fair value adjustments to servicing rights, platform fees, monthly fees charged to customers for our line of credit, and marketing fees earned from our issuing bank partner, which are recognized as the related services are provided. |
Stock-Based Compensation | Stock-Based Compensation In accordance with ASC Topic 718, Compensation—Stock Compensation , all stock-based compensation provided to employees, including stock options and restricted stock units, or RSU's, 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). The fair value of stock options is estimated using the Black-Scholes-Merton Option Pricing Model. 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. RSU's issued to employees and directors 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 be forfeited. Estimated forfeitures are subsequently adjusted to reflect actual forfeiture. Options typically vest at a rate of 25% after one year from the vesting commencement date and then monthly over an additional three -year period. The options expire ten years from the grant date or, for terminated employees, 90 days after the employee’s termination date. RSUs typically vest at a rate of 25% annually, over four annual vesting periods. Compensation expense for the fair value of the options and RSUs at their grant date is recognized ratably over the vesting period. Performance-Based Restricted Stock Units In the third quarter of 2016, the Compensation Committee of the Board of Directors approved performance-based compensation awards to certain members of executive management and other key personnel. The performance-based compensation awards consist of performance-based restricted stock units, or PRSUs, to be settled solely in shares of our common stock, as well as performance units, to be settled solely in cash. The value of the awards is based on achieving a target performance level established by the Compensation Committee and the award value may increase or decrease based on actual performance relative to the target level. The compensation expense related to the PRSUs and performance units will be recorded on a straight-line basis with the expense being adjusted prospectively as our estimate of the expected performance is reassessed each reporting period. |
Performance-Based Restricted Stock Units | Performance-Based Restricted Stock Units In the third quarter of 2016, the Compensation Committee of the Board of Directors approved performance-based compensation awards to certain members of executive management and other key personnel. The performance-based compensation awards consist of performance-based restricted stock units, or PRSUs, to be settled solely in shares of our common stock, as well as performance units, to be settled solely in cash. The value of the awards is based on achieving a target performance level established by the Compensation Committee and the award value may increase or decrease based on actual performance relative to the target level. The compensation expense related to the PRSUs and performance units will be recorded on a straight-line basis with the expense being adjusted prospectively as our estimate of the expected performance is reassessed each reporting period. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included within sales and marketing in our consolidated statements of operations. |
Foreign Currency | Foreign Currency In accordance with ASC 830, Foreign Currency Matters, we have determined the functional currency of our subsidiary, OnDeck Australia, is the Australian dollar. We translate the financial statements of this subsidiary to U.S. dollars using month-end exchange rates for assets and liabilities, and average exchange rates for revenue and expenses. Translation gains and losses are recorded in accumulated other comprehensive loss as a component of stockholders' equity. |
Income Taxes | Income Taxes In accordance with ASC 740, Income Taxes , we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets to the amount we believe is more likely than not to be realized. Uncertain tax positions are recognized only when we believe it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. We recognize interest and penalties, if any, related to uncertain tax positions in income tax expense. We did not have any accrued interest or penalties associated with uncertain tax positions as of December 31, 2017 and 2016 . We file income tax returns in the United States for federal, state and local jurisdictions. We are no longer subject to U.S. federal, certain states, and local income tax examinations for years prior to 2014, with certain states no longer subject for years prior to 2013, although carryforward attributes that were generated prior to 2014 may still be adjusted upon examination by the Internal Revenue Service if used in a future period. 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 . Prior to January 1, 2016, we had not recognized any uncertain tax positions. |
Fair Value Measurement | Fair Value Measurement In accordance with ASC 820, Fair Value Measurement , we use a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value. The three tiers are defined as follows: Level 1: Quoted prices in active markets or liabilities in active markets for identical assets or liabilities, accessible by us at the measurement date. Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices. Level 3: Unobservable inputs for assets or liabilities for which there is little or no market data, which require us to develop our own assumptions. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flows, or similar techniques, which incorporate our own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. 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. 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. |
Basic and Diluted Net Loss per Common Share | Basic and Diluted Net Loss per Common Share Basic net loss per common share is computed by dividing net loss attributable to On Deck Capital, Inc. common stockholders by the weighted-average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted net loss per common share includes the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” or “if converted” methods, as applicable. Diluted net loss per common share is computed by using the weighted-average number of common shares outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options, warrants and unvested restricted stock. Due to net losses for the years ended December 31, 2017 , 2016 and 2015 , basic and diluted net loss per common share were the same, as the effect of potentially dilutive securities was anti-dilutive. |
Recently Adopted Accounting Standards and Recently Adopted Accounting Standards and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Standards In April 2015, the FASB issued Accounting Standards Update, or ASU, 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The ASU simplifies the presentation of debt issuance costs by requiring that unamortized debt issuance costs be presented as a reduction of the applicable liability rather than an asset. The guidance was effective on January 1, 2016 and was required to be applied retrospectively. Accordingly, $4.2 million of deferred debt issuance costs on the consolidated balance sheet at December 31, 2015 has been reclassified to be presented as a reduction of the carrying value of the associated debt to conform with the current period presentation. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 will simplify 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. The new guidance will be effective for annual reporting periods beginning after December 15, 2016. Early adoption is permitted in any interim or annual period. The adoption of this guidance did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted as of December 31, 2017 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 guidance 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 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 effected by the adoption of ASC 606. Marketing fees from our issuing bank partner will be within the scope of ASC 606. However, we believe that ASC 606 will have little, if any, impact on the timing and amount of revenue recognition as compared to the current guidance. We adopted the requirements of the new standard effective January 1, 2018 and applied the modified retrospective method of adoption. The adoption of ASC 606 did not have a material effect and we did not record a cumulative effect at the date of initial application. 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 guidance 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 guidance 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 guidance 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 guidance will have on our consolidated financial statements. |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2017 2016 2015 Numerator: Net loss $ (14,345 ) $ (85,482 ) $ (2,231 ) Less: net loss attributable to noncontrolling interest 2,811 2,524 958 Net loss attributable to On Deck Capital, Inc. common stockholders $ (11,534 ) $ (82,958 ) $ (1,273 ) Denominator: Weighted-average common shares outstanding, basic and diluted 72,890,313 70,934,937 69,545,238 Net loss per common share, basic and diluted $ (0.16 ) $ (1.17 ) $ (0.02 ) |
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: Year Ended December 31, 2017 2016 2015 Anti-Dilutive Common Share Equivalents Warrants to purchase common stock 22,000 22,000 309,792 Restricted stock units 3,342,640 3,888,768 1,853,452 Stock options 7,918,853 11,426,296 10,711,321 Employee stock purchase program 127,487 243,208 — Total anti-dilutive common share equivalents 11,410,980 15,580,272 12,874,565 |
Interest Income (Tables)
Interest Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift, Interest [Abstract] | |
Summary of Interest Income | Interest income was comprised of the following components for the years ended December 31 (in thousands): 2017 2016 2015 Interest on unpaid principal balance $ 382,983 $ 300,713 $ 227,579 Interest on deposits 132 171 408 Amortization of net deferred origination costs (48,540 ) (36,040 ) (32,939 ) Total interest income $ 334,575 $ 264,844 $ 195,048 |
Loans Held for Investment, Al25
Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Loans | Loans held for investment consisted of the following as of December 31 (in thousands): 2017 2016 Term loans $ 804,227 $ 864,066 Lines of credit 132,012 116,385 Total unpaid principal balance 936,239 980,451 Net deferred origination costs 16,557 19,994 Total loans held for investment $ 952,796 $ 1,000,445 |
Schedule of Allowance for Loan Losses | The activity in the allowance for loan losses for the years ended December 31 consisted of the following (in thousands): 2017 2016 2015 Balance at January 1 $ 110,162 $ 53,311 $ 49,804 Provision for loan losses 152,926 149,963 74,863 Loans charged off (171,272 ) (100,382 ) (78,485 ) Recoveries of loans previously charged off 17,199 7,270 7,129 Allowance for loan losses at December 31 $ 109,015 $ 110,162 $ 53,311 |
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 December 31 (in thousands): 2017 2016 By delinquency status: Non-delinquent loans $ 850,060 $ 890,297 1-14 calendar days past due 23,611 25,899 15-29 calendar days past due 12,528 15,990 30-59 calendar days past due 22,059 22,677 60-89 calendar days past due 12,809 13,952 90 + calendar days past due 15,172 11,636 Total unpaid principal balance $ 936,239 $ 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 December 31 (in thousands): 2017 2016 Non-delinquent loans $ 850,060 $ 890,297 Delinquent: paying (accrual status) 49,252 36,073 Delinquent: non-paying (non-accrual status) 36,927 54,081 Total $ 936,239 $ 980,451 |
Schedule of Loans Held-for-sale | Loans held for sale consisted of the following as of December 31 (in thousands): 2017 2016 Loans held for sale $ — $ 370 Net deferred origination costs — 3 Loans held for sale, net $ — $ 373 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31 : 2017 2016 Fair value at the beginning of period $ 1,131 $ 3,489 Addition: Servicing resulting from transfers of financial assets 1,120 2,690 Changes in fair value: Change in inputs or assumptions used in the valuation model — — Other changes in fair value (1) (2,097 ) (5,048 ) Fair value at the end of period (Level 3) $ 154 $ 1,131 ___________ (1) Represents changes due to collection of expected cash flows through December 31, 2017 and 2016 . |
Property, Equipment and Softw27
Property, Equipment and Software, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Equipment and Software, net | Property, equipment and software, net, consisted of the following as of December 31 (in thousands): Estimated Useful Life 2017 2016 Computer/office equipment 36 months $ 15,419 $ 15,671 Capitalized internal-use software 36 months 24,784 21,789 Leasehold improvements Life of lease 18,336 18,025 Total property, equipment and software, at cost 58,539 55,485 Less accumulated depreciation and amortization (34,967 ) (26,080 ) Property, equipment and software, net $ 23,572 $ 29,405 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The following table summarizes our outstanding debt as of December 31 (in thousands): Description Type Maturity Date Weighted Average Interest December 31, 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 4.1% 102,058 133,767 RAOD Agreement Revolving November 2018 4.9% 86,478 99,985 ODAF Agreement Revolving February 2020 (2) 8.6% 75,000 100,000 ODAC Agreement Revolving May 2019 8.7% 62,350 65,486 PORT II Agreement Revolving December 2018 3.9% 63,851 52,397 Other Agreements Various Various (3) Various 50,706 30,887 690,443 732,522 Deferred Debt Issuance Cost (6,174 ) (5,883 ) Total Funding Debt 684,269 726,639 Corporate Debt: Square 1 Agreement Revolving October 2018 5.5% 8,000 28,000 Deferred Debt Issuance Cost (15 ) (34 ) Total Corporate Debt $ 7,985 $ 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 debt facility expires in February 2019. (3) Maturity dates range from January 2018 through November 2020. |
Schedule of Future Maturities | As of December 31, 2017 , future maturities of our borrowings were as follows (in thousands): 2018 $ 277,642 2019 297,938 2020 122,863 2021 — Thereafter — Total $ 698,443 |
Income Tax Income Tax (Tables)
Income Tax Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the difference between the provision for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows for the years ended December 31 : 2017 2016 2015 Federal statutory rate 34.0 % 34.0 % 34.0 % Effect of: Change in valuation allowance (34.5 )% (36.5 )% (28.0 )% Federal effect of change in state and local tax valuation allowance 0.5 % 2.5 % (6.0 )% Income tax provision effective rate — % — % — % |
Schedule of Deferred Tax Assets | The significant components of our deferred tax asset were as follows as of December 31 (in thousands): 2017 2016 Deferred tax assets relating to: Net operating loss carryforwards $ 20,476 $ 25,880 Loan loss reserve 27,186 40,897 Imputed interest income 424 800 Deferred rent 1,892 2,670 Miscellaneous items 45 174 Total gross deferred tax assets 50,023 70,421 Deferred tax liabilities: Internally developed software 3,912 2,224 Property, equipment and software 4,242 6,747 Origination costs 4,078 7,417 Miscellaneous items 40 430 Total gross deferred tax liabilities 12,272 16,818 Net deferred tax asset 37,751 53,603 Less: valuation allowance (37,751 ) (53,603 ) Net deferred tax asset less valuation allowance $ — $ — |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31 (in thousands): 2017 Description Level 1 Level 2 Level 3 Total Assets : Servicing assets $ — $ — $ 154 $ 154 Total assets $ — $ — $ 154 $ 154 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 December 31 : December 31, 2017 Unobservable input Minimum Maximum Weighted Average Servicing assets Discount rate 30.00 % 30.00 % 30.00 % Cost of service (1) 0.04 % 0.13 % 0.12 % Renewal rate 41.06 % 51.83 % 49.59 % Default rate 10.63 % 10.92 % 10.70 % (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 December 31, 2017 and December 31, 2016 given a hypothetical changes in default rate and cost to service (in thousands): December 31, 2017 December 31, 2016 Servicing Assets Default rate assumption: Default rate increase of 25% $ (40 ) $ (98 ) Default rate increase of 50% $ (76 ) $ (188 ) Cost to service assumption: Cost to service increase by 25% $ (63 ) $ (60 ) Cost to service increase by 50% $ (126 ) $ (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): December 31, 2017 Description Carrying Value Fair Value Level 1 Level 2 Level 3 Assets : Loans held for investment $ 843,781 $ 932,343 $ — $ — $ 932,343 Loans held for sale — — — — Total assets $ 843,781 $ 932,343 $ — $ — $ 932,343 Description Liabilities: Fixed-rate debt $ 300,706 $ 293,512 $ — $ — $ 293,848 Total fixed-rate debt $ 300,706 $ 293,512 $ — $ — $ 293,848 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 |
Stock-Based Compensation and 31
Stock-Based Compensation and Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 under our equity plans for the years ended December 31 : 2017 2016 2015 Risk-free interest rate 2.32% - 2.42% 1.40% - 2.54% 1.65% - 2.13% Expected term (years) 5.0 5.0 - 6.0 5.5 - 6.0 Expected volatility 42% - 44% 46% - 54% 41% - 47% Dividend yield —% —% —% Weighted-average grant date fair value per share $1.66 $2.65 $5.70 |
Summary of Option Activity | The following is a summary of option activity for the year ended December 31, 2017 : Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2017 11,426,296 $ 6.10 — — Granted 368,894 $ 4.13 — — Exercised (1,407,646 ) $ 0.85 — — Forfeited (1,310,438 ) $ 8.55 — — Expired (1,158,253 ) $ 11.45 — — Outstanding at December 31, 2017 7,918,853 $ 5.75 6.4 $ 17,792 Exercisable at December 31, 2017 6,080,899 $ 5.16 5.8 $ 16,989 Vested or expected to vest as of December 31, 2017 7,876,541 $ 5.75 6.4 $ 17,778 |
Schedule of Activities of RSUs | The following table summarizes our activities of RSUs and PRSUs during the year ended December 31, 2017 : Number of RSUs Weighted-Average Grant Date Fair Value Unvested at January 1, 2017 3,888,768 $ 8.46 RSUs and PRSUs granted 2,074,077 $ 4.63 RSUs vested (770,664 ) $ 8.50 RSUs forfeited/expired (1,849,541 ) $ 7.84 Unvested at December 31, 2017 3,342,640 $ 6.18 Expected to vest after December 31, 2017 2,843,933 $ 6.31 |
Schedule of Assumptions for Stock Purchase Rights Granted under ESPP | The assumptions used to calculate our Black-Scholes-Merton Option Pricing Model for each stock purchase right granted under the ESPP were as follows for the year ended December 31 : 2017 2016 2015 Risk-free interest rate 1.17 % 0.39 % 0.27 % Expected term (years) 0.50 0.50 0.50 Expected volatility 37 % 52 % 42 % Dividend yield — % — % — % |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs, PRSUs and the ESPP are included in the following line items in our accompanying consolidated statements of operations for the year ended December 31 (in thousands): 2017 2016 2015 Sales and marketing $ 2,429 $ 4,002 $ 3,081 Technology and analytics 2,300 3,422 2,582 Processing and servicing 483 869 544 General and administrative 7,303 7,622 5,375 Total $ 12,515 $ 15,915 $ 11,582 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Commitments Under Operating Leases | At December 31, 2017 , future minimum lease commitments under operating and capital leases, net of sublease income of $1.4 million , for the remaining terms of the operating leases were as follows (in thousands): For the years ending December 31, 2018 $ 8,633 2019 9,225 2020 9,270 2021 9,192 2022 8,915 Thereafter 33,497 Total $ 78,732 |
Schedule of Future Minimum Lease Commitments Under Capital Leases | At December 31, 2017 , future minimum lease commitments under operating and capital leases, net of sublease income of $1.4 million , for the remaining terms of the operating leases were as follows (in thousands): For the years ending December 31, 2018 $ 8,633 2019 9,225 2020 9,270 2021 9,192 2022 8,915 Thereafter 33,497 Total $ 78,732 |
Quarterly Financial Informati33
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Operating Results | The operating results for any quarter are not necessarily indicative of results for any future period. December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 Gross revenues 87,741 83,666 86,651 92,892 81,829 77,371 69,502 62,615 Net revenue 42,098 32,754 42,302 35,435 16,260 32,333 28,857 31,456 Net income (loss) 4,358 (4,532 ) (2,569 ) (11,602 ) (36,460 ) (17,173 ) (18,708 ) (13,141 ) Net loss attributable to common stockholders 5,096 (4,074 ) (1,498 ) (11,058 ) (35,857 ) (16,634 ) (17,895 ) (12,573 ) Basic 0.07 (0.06 ) (0.02 ) (0.15 ) (0.50 ) (0.23 ) (0.25 ) (0.18 ) Diluted 0.07 (0.06 ) (0.02 ) (0.15 ) (0.50 ) (0.23 ) (0.25 ) (0.18 ) |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015 | Jun. 30, 2015 | |
Noncontrolling Interest [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Number of reportable segments | segment | 1 | ||||
Lines of credit amortization period | 6 months | ||||
Threshold to consider a loan to be delinquent | 1 day | ||||
Delinquency threshold to make initial assessment of charge off | 90 days | ||||
Advertising costs | $ 15,000,000 | $ 20,100,000 | $ 22,500,000 | ||
Cumulative translation gain (loss) | 327,000 | (7,000) | |||
Gain (loss) resulting from foreign exchange transactions | 1,600,000 | 200,000 | (1,300,000) | ||
Income tax, penalties and interest accrued | $ 0 | $ 0 | |||
Stock options | |||||
Noncontrolling Interest [Line Items] | |||||
Additional monthly vesting period | 3 years | ||||
Expiration period | 10 years | ||||
Period after employee's termination | 90 days | ||||
Stock options | Tranche one | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Vesting period | 1 year | ||||
Stock options | Tranche two | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Stock options | Tranche three | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Stock options | Tranche four | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting percentage | 25.00% | ||||
RSUs | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting period | 4 years | ||||
RSUs | Tranche one | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting percentage | 25.00% | ||||
RSUs | Tranche two | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting percentage | 25.00% | ||||
RSUs | Tranche three | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting percentage | 25.00% | ||||
RSUs | Tranche four | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting percentage | 25.00% | ||||
On Deck Australia | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership percentage | 55.00% | ||||
Ownership percentage by non-affiliated parties | 45.00% | ||||
Lancelot QBFOD LLC | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership percentage | 67.00% | ||||
Ownership percentage by non-affiliated parties | 33.00% | ||||
Accounting Standards Update 2015-03 | Other Noncurrent Assets | |||||
Noncontrolling Interest [Line Items] | |||||
Deferred debt issuance costs | (4,200,000) | ||||
Accounting Standards Update 2015-03 | Long-term Debt | |||||
Noncontrolling Interest [Line Items] | |||||
Deferred debt issuance costs | $ (4,200,000) | ||||
Capitalized internal-use software | |||||
Noncontrolling Interest [Line Items] | |||||
Estimated useful life | 36 months |
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 | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net loss | $ 4,358 | $ (4,532) | $ (2,569) | $ (11,602) | $ (36,460) | $ (17,173) | $ (18,708) | $ (13,141) | $ (14,345) | $ (85,482) | $ (2,231) |
Less: net loss attributable to noncontrolling interest | 2,811 | 2,524 | 958 | ||||||||
Net income (loss) attributable to On Deck Capital, Inc. common stockholders | $ (11,534) | $ (82,958) | $ (1,273) | ||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding, basic and diluted (in shares) | 72,890,313 | 70,934,937 | 69,545,238 | ||||||||
Net loss per common share, basic and diluted (in dollars per share) | $ (0.16) | $ (1.17) | $ (0.02) |
Net Loss Per Common Share (Anti
Net Loss Per Common Share (Anti-Dilutive Common Share Equivalents) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 11,410,980 | 15,580,272 | 12,874,565 |
Warrants to purchase | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 1,985,846 | 1,985,846 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 7,918,853 | 11,426,296 | 10,711,321 |
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 | 309,792 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 3,342,640 | 3,888,768 | 1,853,452 |
Employee stock purchase program | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive common share equivalents (in shares) | 127,487 | 243,208 | 0 |
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 |
Interest Income (Details)
Interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Banking and Thrift, Interest [Abstract] | |||
Interest on unpaid principal balance | $ 382,983 | $ 300,713 | $ 227,579 |
Interest on deposits | 132 | 171 | 408 |
Amortization of net deferred origination costs | (48,540) | (36,040) | (32,939) |
Total interest income | $ 334,575 | $ 264,844 | $ 195,048 |
Loans Held for Investment, Al38
Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale (Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total unpaid principal balance | $ 936,239 | $ 980,451 |
Net deferred origination costs | 16,557 | 19,994 |
Total loans held for investment | 952,796 | 1,000,445 |
Term loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total unpaid principal balance | 804,227 | 864,066 |
Lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total unpaid principal balance | $ 132,012 | $ 116,385 |
Loans Held for Investment, Al39
Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Originations of loans held for investment, modified | $ 13,840 | $ 6,671 | $ 0 |
Proceeds from sale of previously charged-off loans | 8,300 | 4,400 | 5,500 |
Allowance for loan losses for non-delinquent loans | 74,000 | 59,500 | |
Allowance for loan losses for delinquent loans | 35,000 | 50,700 | |
Unused lines of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Off-balance sheet credit exposure | 204,600 | 164,500 | |
Reserve for Off-balance Sheet Activities | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Related accrual for unfunded loan commitments | 4,400 | 3,900 | |
Financial Institutions Borrower | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Originations of loans held for investment, modified | $ 523,000 | $ 534,100 | $ 231,700 |
Loans Held for Investment, Al40
Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale (Allowance Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at January 1 | $ 110,162 | $ 53,311 | $ 49,804 |
Provision for loan losses | 152,926 | 149,963 | 74,863 |
Loans charged off | (171,272) | (100,382) | (78,485) |
Recoveries of loans previously charged off | 17,199 | 7,270 | 7,129 |
Allowance for loan losses at December 31 | $ 109,015 | $ 110,162 | $ 53,311 |
Loans Held for Investment, Al41
Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale (Non-delinquent, Paying and Non-paying Delinquent Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Non-delinquent loans | $ 850,060 | $ 890,297 |
Delinquent: paying (accrual status) | 49,252 | 36,073 |
Delinquent: non-paying (non-accrual status) | 36,927 | 54,081 |
Total unpaid principal balance | $ 936,239 | $ 980,451 |
Loans Held for Investment, Al42
Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale (Aging Analysis of Term Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-delinquent loans | $ 850,060 | $ 890,297 |
Total unpaid principal balance | 936,239 | 980,451 |
1-14 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 23,611 | 25,899 |
15-29 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 12,528 | 15,990 |
30-59 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 22,059 | 22,677 |
60-89 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | 12,809 | 13,952 |
90 calendar days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due loans | $ 15,172 | $ 11,636 |
Loans Held for Investment, Al43
Loans Held for Investment, Allowance for Loan Losses and Loans Held for Sale (Loans Held for Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Loans held for sale | $ 0 | $ 370 |
Net deferred origination costs | 0 | 3 |
Loans held for sale, net | $ 0 | $ 373 |
Servicing Rights (Narrative) (D
Servicing Rights (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |||
Serviced unpaid principal balance | $ 181 | $ 222 | |
Unpaid principal balance for loans sold during period | 72.5 | 368.3 | $ 600 |
Servicing revenue | $ 1.1 | $ 1.2 | $ 3.5 |
Servicing Rights (Fair Value of
Servicing Rights (Fair Value of Servicing Assets) (Details) - Term Loan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value at the beginning of period | $ 1,131 | $ 3,489 |
Addition: | ||
Servicing resulting from transfers of financial assets | 1,120 | 2,690 |
Changes in fair value: | ||
Change in inputs or assumptions used in the valuation model | 0 | 0 |
Other changes in fair value | (2,097) | (5,048) |
Fair value at the end of period (Level 3) | $ 154 | $ 1,131 |
Property, Equipment and Softw46
Property, Equipment and Software, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, at cost | $ 58,539 | $ 55,485 | |
Less accumulated depreciation and amortization | (34,967) | (26,080) | |
Property, equipment and software, net | $ 23,572 | 29,405 | |
Computer/office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 36 months | ||
Property, equipment and software, at cost | $ 15,419 | 15,671 | |
Capitalized internal-use software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 36 months | ||
Property, equipment and software, at cost | $ 24,784 | 21,789 | |
Amortization expense | 4,900 | 4,200 | $ 2,800 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, equipment and software, at cost | $ 18,336 | $ 18,025 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt | $ 698,443 | |
ODAST II Agreement | Secured Debt | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at December 31, 2017 | 4.70% | |
Debt | $ 250,000 | $ 250,000 |
ODART Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at December 31, 2017 | 4.10% | |
Debt | $ 102,058 | 133,767 |
RAOD Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at December 31, 2017 | 4.90% | |
Debt | $ 86,478 | 99,985 |
ODAF Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at December 31, 2017 | 8.60% | |
Debt | $ 75,000 | 100,000 |
ODAC Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at December 31, 2017 | 8.70% | |
Debt | $ 62,350 | 65,486 |
PORT II Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at December 31, 2017 | 3.90% | |
Debt | $ 63,851 | 52,397 |
Other Agreements | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt | 50,706 | 30,887 |
Funding debt | ||
Debt Instrument [Line Items] | ||
Debt | 690,443 | 732,522 |
Deferred Debt Issuance Cost | (6,174) | (5,883) |
Total | 684,269 | 726,639 |
Corporate debt | ||
Debt Instrument [Line Items] | ||
Total | $ 7,985 | 27,966 |
Corporate debt | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate at December 31, 2017 | 5.50% | |
Debt | $ 8,000 | 28,000 |
Deferred Debt Issuance Cost | $ (15) | $ (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 | Dec. 08, 2016 | Aug. 19, 2016 | Jun. 17, 2016 | May 17, 2016 | Apr. 28, 2016 | Apr. 27, 2016 | Oct. 07, 2015 | Jun. 12, 2015 | May 22, 2015 | Dec. 31, 2016 | Nov. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 13, 2017 | Nov. 30, 2016 | Nov. 29, 2016 | Jun. 16, 2016 | Feb. 26, 2016 |
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Loans held for investment that are pledged as collateral | $ 886,400,000 | $ 852,300,000 | $ 886,400,000 | ||||||||||||||||||||||
Amortization of debt issuance costs | 3,806,000 | 4,538,000 | $ 2,837,000 | ||||||||||||||||||||||
PORT Agreement | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 100,000,000 | ||||||||||||||||||||||||
PORT Agreement | Revolving Credit Facility | LIBOR | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 2.25% | ||||||||||||||||||||||||
RAOD Agreement | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 50,000,000 | $ 100,000,000 | |||||||||||||||||||||||
RAOD Agreement | Revolving Credit Facility | LIBOR | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 3.00% | ||||||||||||||||||||||||
RAOD Agreement | Revolving Credit Facility | ODAC | LIBOR | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 2.50% | ||||||||||||||||||||||||
Amended RAOD Agreement Due November 2018 | Revolving Credit Facility | ODAC | LIBOR | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 3.00% | ||||||||||||||||||||||||
ODAC Agreement | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Borrowing base | 75.00% | 75.00% | 70.00% | ||||||||||||||||||||||
ODAC Agreement | Revolving Credit Facility | ODAC | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 75,000,000 | $ 75,000,000 | $ 50,000,000 | ||||||||||||||||||||||
ODAC Agreement | Revolving Credit Facility | ODAC | LIBOR | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 9.25% | 8.25% | |||||||||||||||||||||||
ODAC Agreement | Revolving Credit Facility | ODAC | LIBOR | Minimum | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 0.00% | ||||||||||||||||||||||||
ODAC Agreement | Revolving Credit Facility | ODAC | LIBOR | Maximum | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 9.25% | ||||||||||||||||||||||||
Amended ODAC Agreement Due May 2019 | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Borrowing base | 85.00% | ||||||||||||||||||||||||
Amended ODAC Agreement Due May 2019 | Revolving Credit Facility | ODAC | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 100,000,000 | ||||||||||||||||||||||||
Amended ODAC Agreement Due May 2019 | Revolving Credit Facility | ODAC | LIBOR | Minimum | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 0.75% | ||||||||||||||||||||||||
Amended ODAC Agreement Due May 2019 | Revolving Credit Facility | ODAC | LIBOR | Maximum | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 7.25% | ||||||||||||||||||||||||
ODAST II Agreement | Secured Debt | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Amount of debt repaid | $ 250,000,000 | ||||||||||||||||||||||||
ODAST II Agreement - Class A | Secured Debt | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Amount of debt repaid | $ 211,500,000 | ||||||||||||||||||||||||
Interest rate | 4.21% | ||||||||||||||||||||||||
ODAST II Agreement - Class B | Secured Debt | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Amount of debt repaid | $ 38,500,000 | ||||||||||||||||||||||||
Interest rate | 7.63% | ||||||||||||||||||||||||
ODAST Agreement | Secured Debt | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Amount of debt repaid | $ 175,000,000 | ||||||||||||||||||||||||
ODART Agreement | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 214,100,000 | $ 162,400,000 | $ 150,000,000 | ||||||||||||||||||||||
Borrowing base | 92.00% | ||||||||||||||||||||||||
Increase in line of credit | $ 12,400,000 | ||||||||||||||||||||||||
ODART Agreement | Revolving Credit Facility | Class A | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 150,000,000 | ||||||||||||||||||||||||
ODART Agreement | Revolving Credit Facility | Class B | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 7.00% | ||||||||||||||||||||||||
Borrowing base | 95.00% | ||||||||||||||||||||||||
Line of credit before election | $ 17,600,000 | ||||||||||||||||||||||||
Maximum capacity at election | $ 167,600,000 | ||||||||||||||||||||||||
ODART Agreement | Revolving Credit Facility | LIBOR | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 8.00% | ||||||||||||||||||||||||
ODART Agreement | Revolving Credit Facility | Cost of funds | Class A | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 2.25% | ||||||||||||||||||||||||
ODART Agreement - Class A | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Borrowing base | 85.00% | ||||||||||||||||||||||||
Increase in line of credit | $ 50,000,000 | ||||||||||||||||||||||||
ODART Agreement - Class B | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Borrowing base | 91.00% | ||||||||||||||||||||||||
Increase in line of credit | $ 1,800,000 | ||||||||||||||||||||||||
ODAF 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 | ||||||||||||||||||||||||
ODAF Agreement | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 100,000,000 | ||||||||||||||||||||||||
Borrowing base | 80.00% | ||||||||||||||||||||||||
ODAF Agreement | Revolving Credit Facility | LIBOR | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 7.25% | ||||||||||||||||||||||||
PORT II Agreement | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 200,000,000 | ||||||||||||||||||||||||
Borrowing base | 83.00% | ||||||||||||||||||||||||
PORT II Agreement | Revolving Credit Facility | Class A | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 125,000,000 | ||||||||||||||||||||||||
Line of credit, additional funding | $ 75,000,000 | ||||||||||||||||||||||||
PORT II Agreement | Revolving Credit Facility | Prime Rate | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 2.25% | ||||||||||||||||||||||||
Corporate debt | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Amount of debt repaid | $ 54,200,000 | $ 0 | $ 12,000,000 | ||||||||||||||||||||||
Corporate debt | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit | $ 20,000,000 | $ 30,000,000 | $ 20,000,000 | ||||||||||||||||||||||
Interest rate floor | 4.50% | ||||||||||||||||||||||||
Corporate debt | Revolving Credit Facility | Prime Rate | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Variable interest spread | 1.25% | ||||||||||||||||||||||||
Interest Expense | PORT Agreement | Revolving Credit Facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Amortization of debt issuance costs | $ 200,000 |
Debt (Schedule of Future Maturi
Debt (Schedule of Future Maturities) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 277,642 |
2,019 | 297,938 |
2,020 | 122,863 |
2,021 | 0 |
Thereafter | 0 |
Total | $ 698,443 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 21, 2017 |
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense | $ 0 | $ 0 | $ 0 | ||
Net losses | 14,345,000 | 85,482,000 | 2,231,000 | ||
Estimated tax effect of claimed deductions | 2,200,000 | ||||
Tax payable | $ 0 | 0 | |||
Provisional income tax expense due to Tax Act | 18,800,000 | ||||
Deferred tax assets, valuation allowance | 37,751,000 | 37,751,000 | 53,603,000 | $ 56,600,000 | |
Federal | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | 82,100,000 | 82,100,000 | 69,700,000 | 50,600,000 | |
State | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards | $ 81,300,000 | $ 81,300,000 | $ 68,900,000 | $ 49,800,000 |
Income Tax (Effective Income Ta
Income Tax (Effective Income Tax Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% |
Change in valuation allowance | (34.50%) | (36.50%) | (28.00%) |
Federal effect of change in state and local tax valuation allowance | 0.50% | 2.50% | (6.00%) |
Income tax provision effective rate | 0.00% | 0.00% | 0.00% |
Income Tax (Components of Defer
Income Tax (Components of Deferred Tax Asset) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 21, 2017 | Dec. 31, 2016 |
Deferred tax assets relating to: | |||
Net operating loss carryforwards | $ 20,476 | $ 25,880 | |
Loan loss reserve | 27,186 | 40,897 | |
Imputed interest income | 424 | 800 | |
Deferred rent | 1,892 | 2,670 | |
Miscellaneous items | 45 | 174 | |
Total gross deferred tax assets | 50,023 | 70,421 | |
Deferred tax liabilities: | |||
Internally developed software | 3,912 | 2,224 | |
Property, equipment and software | 4,242 | 6,747 | |
Origination costs | 4,078 | 7,417 | |
Miscellaneous items | 40 | 430 | |
Total gross deferred tax liabilities | 12,272 | 16,818 | |
Net deferred tax asset | 37,751 | 53,603 | |
Less: valuation allowance | (37,751) | $ (56,600) | (53,603) |
Net deferred tax asset less valuation allowance | $ 0 | $ 0 |
Fair Value of Financial Instr53
Fair Value of Financial Instruments (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 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 | 932,343 | 980,174 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing assets | 154 | 1,131 |
Total assets | 154 | 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 | 154 | 1,131 |
Total assets | $ 154 | $ 1,131 |
Fair Value of Financial Instr54
Fair Value of Financial Instruments (Servicing Rights) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Cost of service | 0.04% | 0.09% |
Renewal rate | 41.06% | 46.20% |
Default rate | 10.63% | 10.32% |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Cost of service | 0.13% | 0.14% |
Renewal rate | 51.83% | 56.54% |
Default rate | 10.92% | 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 | 49.59% | 50.14% |
Default rate | 10.70% | 10.48% |
Fair Value of Financial Instr55
Fair Value of Financial Instruments (Servicing Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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 of 25% | $ (40) | $ (98) |
Default rate increase of 50% | (76) | (188) |
Cost to service increase by 25% | (63) | (60) |
Cost to service increase by 50% | $ (126) | $ (120) |
Fair Value of Financial Instr56
Fair Value of Financial Instruments (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 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 | 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 | 932,343 | 979,780 |
Loans held for sale | 0 | 394 |
Total assets | 932,343 | 980,174 |
Fixed-rate debt | 293,848 | 275,200 |
Total fixed-rate debt | 293,848 | 275,200 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 843,781 | 890,283 |
Loans held for sale | 0 | 373 |
Total assets | 843,781 | 890,656 |
Fixed-rate debt | 300,706 | 280,886 |
Total fixed-rate debt | 300,706 | 280,886 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment | 932,343 | 979,780 |
Loans held for sale | 0 | 394 |
Total assets | 932,343 | 980,174 |
Fixed-rate debt | 293,512 | 275,200 |
Total fixed-rate debt | $ 293,512 | $ 275,200 |
Stock-Based Compensation and 57
Stock-Based Compensation and Employee Benefit Plans (Summary of Assumptions for Estimating Fair Value of Stock Options) (Details) - Employee Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.32% | 1.40% | 1.65% |
Risk-free interest rate, maximum | 2.42% | 2.54% | 2.13% |
Expected term (years) | 5 years | ||
Expected volatility, minimum | 42.00% | 46.00% | 41.00% |
Expected volatility, maximum | 44.00% | 54.00% | 47.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average grant date fair value per share (in dollars per share) | $ 1.66 | $ 2.65 | $ 5.70 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 5 years | 5 years 6 months | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | 6 years |
Stock-Based Compensation and 58
Stock-Based Compensation and Employee Benefit Plans (Summary of Option Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number of Options | |
Beginning balance (in shares) | shares | 11,426,296 |
Granted (in shares) | shares | 368,894 |
Exercised (in shares) | shares | (1,407,646) |
Forfeited (in shares) | shares | (1,310,438) |
Expired (in shares) | shares | (1,158,253) |
Ending balance (in shares) | shares | 7,918,853 |
Exercisable, number of options (in shares) | shares | 6,080,899 |
Vested or expected to vest, number of options (in shares) | shares | 7,876,541 |
Weighted- Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 6.10 |
Granted (in dollars per share) | $ / shares | 4.13 |
Exercised (in dollars per share) | $ / shares | 0.85 |
Forfeited (in dollars per share) | $ / shares | 8.55 |
Expired (in dollars per share) | $ / shares | 11.45 |
Ending balance (in dollars per share) | $ / shares | 5.75 |
Exercisable, weighted-average exercise price (in dollars per share) | $ / shares | 5.16 |
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 4 months 21 days |
Outstanding, aggregate intrinsic value | $ | $ 17,792 |
Exercisable, weighted-average remaining contractual term | 5 years 10 months 2 days |
Exercisable, aggregate intrinsic value | $ | $ 16,989 |
Vested or expected to vest, weighted-average remaining contractual term | 6 years 4 months 21 days |
Vested or expected to vest, aggregate intrinsic value | $ | $ 17,778 |
Stock-Based Compensation and 59
Stock-Based Compensation and Employee Benefit Plans (Options) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Compensation cost for nonvested option awards not yet recognized | $ 5.6 | ||
Weighted-average recognition period | 1 year 7 months 6 days | ||
Aggregate intrinsic value | $ 5.3 | $ 3 | $ 10.8 |
Stock-Based Compensation and 60
Stock-Based Compensation and Employee Benefit Plans (Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of RSUs | |
Unvested beginning balance (in shares) | shares | 3,888,768 |
RSUs and PRSUs granted (in shares) | shares | 2,074,077 |
RSUs vested (in shares) | shares | (770,664) |
RSUs forfeited/expired (in shares) | shares | (1,849,541) |
Unvested ending balance (in shares) | shares | 3,342,640 |
Expected to vest after December 31, 2017 (in shares) | shares | 2,843,933 |
Weighted-Average Grant Date Fair Value | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 8.46 |
RSUs and PRSUs granted (in dollars per share) | $ / shares | 4.63 |
RSUs vested (in dollars per share) | $ / shares | 8.50 |
RSUs forfeited/expired (in dollars per share) | $ / shares | 7.84 |
Unvested, ending balance (in dollars per share) | $ / shares | 6.18 |
Expected to vest after December 31, 2017 (in dollars per share) | $ / shares | $ 6.31 |
Stock-Based Compensation and 61
Stock-Based Compensation and Employee Benefit Plans (Restricted Stock Units) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recognition period | 1 year 7 months 6 days | |
Performance Based Restricted Stock Units (PRSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of PRSUs granted (in shares) | 194,207 | |
Ratio eligible for possible vesting | 0.3333 | |
Maximum earnings, percentage of baseline awards | 150.00% | |
Performance period | 12 months | |
Weighted average grant date fair value (in dollars per share) | $ 4.67 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of PRSUs granted (in shares) | 2,074,077 | |
Weighted average grant date fair value (in dollars per share) | $ 4.63 | |
Unrecognized compensation cost | $ 14.3 | |
Recognition period | 2 years 7 months 17 days |
Stock-Based Compensation and 62
Stock-Based Compensation and Employee Benefit Plans (ESPP Assumptions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation costs related to shares not yet recognized | $ 5.6 | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.17% | 0.39% | 0.27% |
Expected term (years) | 6 months | 6 months | 6 months |
Expected volatility | 37.00% | 52.00% | 42.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
2014 Employee Stock Purchase Plan | Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation costs related to shares not yet recognized | $ 0.1 |
Stock-Based Compensation and 63
Stock-Based Compensation and Employee Benefit Plans (Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 12,515 | $ 15,915 | $ 11,582 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 2,429 | 4,002 | 3,081 |
Technology and analytics | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 2,300 | 3,422 | 2,582 |
Processing and servicing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | 483 | 869 | 544 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 7,303 | $ 7,622 | $ 5,375 |
Stock-Based Compensation and 64
Stock-Based Compensation and Employee Benefit Plans (401(k) Plan) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Employer related match expense | $ 1.2 | $ 1.4 | $ 1 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
May 31, 2017USD ($) | Jun. 30, 2015USD ($) | Apr. 30, 2015USD ($)office | Jan. 31, 2013USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)group | |
Virginia Lease | |||||||
Operating Leased Assets [Line Items] | |||||||
Monthly rental payments included in agreement | $ 65 | ||||||
Term for rent holiday | 6 years | ||||||
Tenant incentive/allowance | $ 1,000 | ||||||
New York Lease | |||||||
Operating Leased Assets [Line Items] | |||||||
Monthly rental payments included in agreement | $ 500 | ||||||
Tenant incentive/allowance | 5,800 | ||||||
Rent credits | 3,800 | ||||||
Denver Lease | |||||||
Operating Leased Assets [Line Items] | |||||||
Number of offices that received notice of termination | office | 1 | ||||||
Tenant improvement allowance | $ 400 | ||||||
New Denver Lease | |||||||
Operating Leased Assets [Line Items] | |||||||
Term for rent holiday | 4 months | ||||||
Tenant incentive/allowance | $ 2,600 | ||||||
Average monthly fixed rent payment | $ 144 | ||||||
Australia Lease | |||||||
Operating Leased Assets [Line Items] | |||||||
Average monthly fixed rent payment | $ 34 | ||||||
Data Warehouse Lease Through January 2017 | |||||||
Operating Leased Assets [Line Items] | |||||||
Capital leases, future minimum payments due | 7,100 | $ 7,000 | $ 4,300 | ||||
Gains (Losses) on Sale of Loans, Net | Customer Concentration Risk | |||||||
Operating Leased Assets [Line Items] | |||||||
Number of groups of customers | group | 1 | ||||||
Concentration risk, percentage | 13.00% | ||||||
Pro Forma | |||||||
Operating Leased Assets [Line Items] | |||||||
Reduction in future minimum lease payments due to lease termination | $ 17,500 | ||||||
California | Total Loan Originations | Geographic Concentration Risk | |||||||
Operating Leased Assets [Line Items] | |||||||
Concentration risk, percentage | 14.00% | 14.00% | |||||
Florida | Total Loan Originations | Geographic Concentration Risk | |||||||
Operating Leased Assets [Line Items] | |||||||
Concentration risk, percentage | 9.00% | 9.00% | |||||
Texas | Total Loan Originations | Geographic Concentration Risk | |||||||
Operating Leased Assets [Line Items] | |||||||
Concentration risk, percentage | 9.00% | 9.00% |
Commitments and Contingencies66
Commitments and Contingencies (Future Minimum Lease Commitments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating and Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] [Abstract] | |
Sublease income netted with future minimum lease commitments | $ 1,400 |
2,018 | 8,633 |
2,019 | 9,225 |
2,020 | 9,270 |
2,021 | 9,192 |
2,022 | 8,915 |
Thereafter | 33,497 |
Total | $ 78,732 |
Quarterly Financial Informati67
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Gross revenues | $ 87,741 | $ 83,666 | $ 86,651 | $ 92,892 | $ 81,829 | $ 77,371 | $ 69,502 | $ 62,615 | $ 350,950 | $ 291,317 | $ 254,767 |
Net revenue | 42,098 | 32,754 | 42,302 | 35,435 | 16,260 | 32,333 | 28,857 | 31,456 | 152,589 | 108,906 | 159,660 |
Net income (loss) | 4,358 | (4,532) | (2,569) | (11,602) | (36,460) | (17,173) | (18,708) | (13,141) | $ (14,345) | $ (85,482) | $ (2,231) |
Net loss attributable to common stockholders | $ 5,096 | $ (4,074) | $ (1,498) | $ (11,058) | $ (35,857) | $ (16,634) | $ (17,895) | $ (12,573) | |||
Basic (in dollars per share) | $ 0.07 | $ (0.06) | $ (0.02) | $ (0.15) | $ (0.50) | $ (0.23) | $ (0.25) | $ (0.18) | |||
Diluted (in dollars per share) | $ 0.07 | $ (0.06) | $ (0.02) | $ (0.15) | $ (0.50) | $ (0.23) | $ (0.25) | $ (0.18) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Subsequent Event [Line Items] | |
Lease termination charge | $ 3.2 |
Lease termination surrender fee | 2.6 |
Impairment of Leasehold | $ 4 |
Schedule II - Valuation and Q69
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan Losses: | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 110,162 | $ 53,311 | $ 49,804 |
Charged to Cost and Expenses | 152,926 | 149,963 | 74,863 |
Charged to Other Accounts | 17,199 | 7,270 | 7,129 |
Deductions— Write offs | (171,272) | (100,382) | (78,485) |
Balance at End of Period | 109,015 | 110,162 | 53,311 |
Deferred tax asset valuation allowance: | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 53,603 | 31,978 | 26,090 |
Charged to Cost and Expenses | (826) | (24,209) | (2,514) |
Charged to Other Accounts | 3,779 | 45,834 | 8,402 |
Deductions— Write offs | (18,805) | 0 | 0 |
Balance at End of Period | $ 37,751 | $ 53,603 | $ 31,978 |