Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Enova International, Inc. | |
Entity Central Index Key | 0001529864 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Title of 12(b) Security | Common Stock, $.00001 par value per share | |
Trading Symbol | ENVA | |
Name of Exchange of which registered | NYSE | |
Entity Common Stock, Shares Outstanding | 32,010,647 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-35503 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3190813 | |
Entity Address, Address Line One | 175 West Jackson Blvd. | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60604 | |
City Area Code | 312 | |
Local Phone Number | 568-4200 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Assets | |||
Cash and cash equivalents | $ 144,090 | $ 165,477 | $ 394,353 |
Restricted cash | 69,664 | 60,406 | 52,806 |
Loans and finance receivables at fair value | 2,460,851 | 1,964,690 | 1,408,703 |
Income taxes receivable | 44,597 | 51,104 | 337 |
Other receivables and prepaid expenses | 58,859 | 52,274 | 48,476 |
Property and equipment, net | 88,648 | 78,402 | 80,430 |
Operating lease right-of-use assets | 21,301 | 23,101 | 37,752 |
Goodwill | 279,275 | 279,275 | 279,275 |
Intangible assets, net | 31,417 | 35,444 | 39,472 |
Other assets | 54,468 | 51,310 | 53,185 |
Total assets | 3,253,170 | 2,761,483 | 2,394,789 |
Liabilities and Stockholders’ Equity | |||
Accounts payable and accrued expenses | 169,530 | 156,102 | 140,571 |
Operating lease liabilities | 36,962 | 40,987 | 64,233 |
Deferred tax liabilities, net | 97,932 | 86,943 | 66,740 |
Long-term debt | 1,840,665 | 1,384,399 | 1,028,488 |
Total liabilities | 2,145,089 | 1,668,431 | 1,300,032 |
Commitments and contingencies (Note 8) | |||
Stockholders’ equity: | |||
Common stock, $0.00001 par value, 250,000,000 shares authorized, 44,165,233, 43,185,473 and 43,423,572 shares issued and 32,183,324, 36,872,424 and 34,144,012 outstanding as of June 30, 2022 and 2021 and December 31, 2021, respectively | 0 | 0 | 0 |
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding | |||
Additional paid in capital | 239,187 | 225,689 | 211,548 |
Retained earnings | 1,210,605 | 1,105,761 | 1,005,563 |
Accumulated other comprehensive loss | (7,481) | (8,540) | (6,011) |
Treasury stock, at cost (11,981,909, 6,313,049 and 9,279,560 shares as of June 30, 2022 and 2021 and December 31, 2021, respectively) | (334,230) | (229,858) | (117,439) |
Total Enova International, Inc. stockholders’ equity | 1,108,081 | 1,093,052 | 1,093,661 |
Noncontrolling interest | 1,096 | ||
Total stockholders’ equity | 1,108,081 | 1,093,052 | 1,094,757 |
Total liabilities and stockholders’ equity | $ 3,253,170 | $ 2,761,483 | $ 2,394,789 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Statement Of Financial Position [Abstract] | |||
Common stock, par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, shares issued | 44,165,233 | 43,423,572 | 43,185,473 |
Common stock, shares outstanding | 32,183,324 | 34,144,012 | 36,872,424 |
Preferred stock, par value per share | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Treasury stock, shares | 11,981,909 | 9,279,560 | 6,313,049 |
CONSOLIDATED BALANCE SHEETS (Co
CONSOLIDATED BALANCE SHEETS (Consolidated VIEs) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Assets of consolidated VIEs, included in total assets above | ||||
Cash and cash equivalents | $ 144,090 | $ 165,477 | $ 394,353 | |
Restricted cash | 69,664 | 60,406 | 52,806 | |
Loans and finance receivables at fair value | 2,460,851 | 1,964,690 | 1,408,703 | $ 1,230,711 |
Other receivables and prepaid expenses | 58,859 | 52,274 | 48,476 | |
Other assets | 54,468 | 51,310 | 53,185 | |
Total assets | 3,253,170 | 2,761,483 | 2,394,789 | |
Liabilities of consolidated VIEs, included in total liabilities above | ||||
Accounts payable and accrued expenses | 169,530 | 156,102 | 140,571 | |
Long-term debt | 1,840,665 | 1,384,399 | 1,028,488 | |
Total liabilities | 2,145,089 | 1,668,431 | 1,300,032 | |
Variable Interest Entity, Primary Beneficiary | ||||
Assets of consolidated VIEs, included in total assets above | ||||
Cash and cash equivalents | 420 | 420 | 1,991 | |
Restricted cash | 56,211 | 45,706 | 42,789 | |
Loans and finance receivables at fair value | 1,194,166 | 745,246 | 533,215 | |
Other receivables and prepaid expenses | 11,680 | 6,378 | 4,355 | |
Other assets | 2,641 | 2,082 | 925 | |
Total assets | 1,265,118 | 799,832 | 583,275 | |
Liabilities of consolidated VIEs, included in total liabilities above | ||||
Accounts payable and accrued expenses | 4,205 | 2,061 | 4,247 | |
Affiliate note payable | 4,220 | |||
Long-term debt | 952,025 | 565,770 | $ 410,076 | |
Total liabilities | $ 956,230 | $ 567,831 | $ 418,543 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 407,990 | $ 264,720 | $ 793,721 | $ 524,164 |
Change in Fair Value | (143,418) | (5,587) | (260,460) | (26,665) |
Net Revenue | 264,572 | 259,133 | 533,261 | 497,499 |
Operating Expenses | ||||
Marketing | 91,551 | 55,254 | 184,722 | 83,822 |
Operations and technology | 42,262 | 35,035 | 82,992 | 70,662 |
General and administrative | 33,690 | 38,675 | 68,218 | 82,764 |
Depreciation and amortization | 7,584 | 7,460 | 17,098 | 14,087 |
Total Operating Expenses | 175,087 | 136,424 | 353,030 | 251,335 |
Income from Operations | 89,485 | 122,709 | 180,231 | 246,164 |
Interest expense, net | (24,950) | (19,416) | (47,433) | (39,330) |
Foreign currency transaction gain (loss) | 21 | (240) | (293) | (274) |
Equity method investment income | 6,323 | 1,471 | 6,651 | 2,029 |
Other nonoperating expenses | (1,091) | (750) | (1,091) | (1,128) |
Income before Income Taxes | 69,788 | 103,774 | 138,065 | 207,461 |
Provision for income taxes | 17,387 | 23,224 | 33,221 | 50,940 |
Net income before noncontrolling interest | 52,401 | 80,550 | 104,844 | 156,521 |
Less: Net income attributable to noncontrolling interest | 373 | 424 | ||
Net income attributable to Enova International, Inc. | $ 52,401 | $ 80,177 | $ 104,844 | $ 156,097 |
Earnings per common share: | ||||
Basic | $ 1.61 | $ 2.18 | $ 3.18 | $ 4.28 |
Diluted | $ 1.56 | $ 2.10 | $ 3.07 | $ 4.13 |
Weighted average common shares outstanding: | ||||
Basic | 32,497 | 36,801 | 32,933 | 36,457 |
Diluted | 33,484 | 38,142 | 34,181 | 37,816 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income before noncontrolling interest | $ 52,401 | $ 80,550 | $ 104,844 | $ 156,521 | |
Other comprehensive loss, net of tax: | |||||
Foreign currency translation gain (loss) | [1] | (2,570) | 2,487 | 897 | 1,157 |
Ownership change in noncontrolling interest | (270) | ||||
Unrealized gain on available for sale securities, net of tax | 162 | 162 | |||
Total other comprehensive gain (loss), net of tax | (2,408) | 2,487 | 1,059 | 887 | |
Comprehensive Income | 49,993 | 83,037 | 105,903 | 157,408 | |
Net income attributable to noncontrolling interest | (373) | (424) | |||
Foreign currency translation loss attributable to noncontrolling interests | 19 | 12 | |||
Ownership change in noncontrolling interest | 802 | ||||
Comprehensive income attributable to the noncontrolling interest | (354) | 390 | |||
Comprehensive income attributable to Enova International, Inc. | $ 49,993 | $ 82,683 | $ 105,903 | $ 157,798 | |
[1] Net of tax benefit (provision) of $ 843 and $ ( 781 ) for the three months ended June 30, 2022 and 2021, respectively, and $ ( 280 ) and $ ( 256 ) for the six months ended June 30, 2022 and 2021 , respectively. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Tax benefit (provision) of foreign currency translation (loss) gain | $ 843 | $ (781) | $ (280) | $ (256) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Enova International, Inc. Stockholders'Equity | Noncontrolling Interest |
Balance at Dec. 31, 2020 | $ 918,834 | $ 187,981 | $ 849,466 | $ (6,898) | $ (113,201) | $ 917,348 | $ 1,486 | |
Balance, in shares at Dec. 31, 2020 | 41,937,000 | (6,174,000) | ||||||
Stock-based compensation expense | 11,054 | 11,054 | 11,054 | |||||
Shares issued for vested RSUs, in shares | 743,000 | |||||||
Shares issued for stock option exercises | 11,441 | 11,441 | 11,441 | |||||
Shares issued for stock option exercises, in shares | 505,000 | |||||||
Net income attributable to Enova International, Inc. | 156,097 | 156,097 | 156,097 | |||||
Foreign currency translation gain (loss), net of tax | (1,145) | (1,157) | (1,157) | 12 | ||||
Purchases of treasury shares, at cost | (4,238) | $ (4,238) | (4,238) | |||||
Purchases of treasury shares, at cost, in shares | (139,000) | |||||||
Ownership change in noncontrolling interest | 1,072 | (270) | 802 | (802) | ||||
Net income attributable to noncontrolling interest | 424 | 424 | ||||||
Balance at Jun. 30, 2021 | $ 1,094,757 | 211,548 | 1,005,563 | (6,011) | $ (117,439) | 1,093,661 | 1,096 | |
Balance, in shares at Jun. 30, 2021 | 43,185,473 | 43,185,000 | (6,313,000) | |||||
Balance at Mar. 31, 2021 | $ 1,005,608 | 203,765 | 925,386 | (8,498) | $ (115,787) | 1,004,866 | 742 | |
Balance, in shares at Mar. 31, 2021 | 42,863,000 | (6,264,000) | ||||||
Stock-based compensation expense | 5,250 | 5,250 | 5,250 | |||||
Shares issued for vested RSUs, in shares | 209,000 | |||||||
Shares issued for stock option exercises | 2,533 | 2,533 | 2,533 | |||||
Shares issued for stock option exercises, in shares | 113,000 | |||||||
Net income attributable to Enova International, Inc. | 80,177 | 80,177 | 80,177 | |||||
Foreign currency translation gain (loss), net of tax | 2,468 | 2,487 | 2,487 | (19) | ||||
Purchases of treasury shares, at cost | (1,652) | $ 1,652 | 1,652 | |||||
Purchases of treasury shares, at cost, in shares | 49,000 | |||||||
Net income attributable to noncontrolling interest | 373 | 373 | ||||||
Balance at Jun. 30, 2021 | $ 1,094,757 | 211,548 | 1,005,563 | (6,011) | $ (117,439) | 1,093,661 | $ 1,096 | |
Balance, in shares at Jun. 30, 2021 | 43,185,473 | 43,185,000 | (6,313,000) | |||||
Balance at Dec. 31, 2021 | $ 1,093,052 | 225,689 | 1,105,761 | (8,540) | $ (229,858) | 1,093,052 | ||
Balance, in shares at Dec. 31, 2021 | 43,423,572 | 43,424,000 | (9,280,000) | |||||
Stock-based compensation expense | $ 10,500 | 10,500 | 10,500 | |||||
Shares issued for vested RSUs, in shares | 604,000 | |||||||
Shares issued for stock option exercises | 2,998 | 2,998 | 2,998 | |||||
Shares issued for stock option exercises, in shares | 137,000 | |||||||
Net income attributable to Enova International, Inc. | 104,844 | 104,844 | 104,844 | |||||
Unrealized gain on investments, net of tax | 162 | 162 | 162 | |||||
Foreign currency translation gain (loss), net of tax | 897 | 897 | 897 | |||||
Purchases of treasury shares, at cost | (104,372) | $ (104,372) | (104,372) | |||||
Purchases of treasury shares, at cost, in shares | (2,702,000) | |||||||
Balance at Jun. 30, 2022 | $ 1,108,081 | 239,187 | 1,210,605 | (7,481) | $ (334,230) | 1,108,081 | ||
Balance, in shares at Jun. 30, 2022 | 44,165,233 | 44,165,000 | (11,982,000) | |||||
Balance at Mar. 31, 2022 | $ 1,077,950 | 233,437 | 1,158,204 | (5,074) | $ (308,617) | 1,077,950 | ||
Balance, in shares at Mar. 31, 2022 | 44,058,000 | (11,227,000) | ||||||
Stock-based compensation expense | 5,133 | 5,133 | 5,133 | |||||
Shares issued for vested RSUs, in shares | 80,000 | |||||||
Shares issued for stock option exercises | 617 | 617 | 617 | |||||
Shares issued for stock option exercises, in shares | 27,000 | |||||||
Net income attributable to Enova International, Inc. | 52,401 | 52,401 | 52,401 | |||||
Unrealized gain on investments, net of tax | 162 | 162 | 162 | |||||
Foreign currency translation gain (loss), net of tax | (2,569) | (2,569) | (2,569) | |||||
Purchases of treasury shares, at cost | (25,613) | $ 25,613 | 25,613 | |||||
Purchases of treasury shares, at cost, in shares | 755,000 | |||||||
Balance at Jun. 30, 2022 | $ 1,108,081 | $ 239,187 | $ 1,210,605 | $ (7,481) | $ (334,230) | $ 1,108,081 | ||
Balance, in shares at Jun. 30, 2022 | 44,165,233 | 44,165,000 | (11,982,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net income before noncontrolling interest | $ 104,844 | $ 156,521 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,098 | 14,087 |
Amortization of deferred loan costs and debt discount | 2,528 | 3,121 |
Change in fair value of loans and finance receivables | 257,471 | 25,708 |
Stock-based compensation expense | 10,500 | 11,054 |
Loss on sale of subsidiary | 4,388 | |
Incomplete transaction costs | 710 | |
Loss on early extinguishment of debt | 378 | |
Operating leases, net | (2,225) | (1,349) |
Deferred income taxes, net | 10,726 | 18,369 |
Changes in operating assets and liabilities: | ||
Finance and service charges on loans and finance receivables | (11,299) | (3,991) |
Other receivables and prepaid expenses and other assets | (18,064) | (6,223) |
Accounts payable and accrued expenses | (11,539) | 5,170 |
Current income taxes | 27,036 | (2,915) |
Net cash provided by operating activities | 392,174 | 219,930 |
Cash Flows from Investing Activities | ||
Loans and finance receivables originated or acquired | (1,937,819) | (1,054,719) |
Loans and finance receivables repaid | 1,201,083 | 870,513 |
Acquisitions, net of cash acquired | (28,358) | |
Capitalization of software development costs and purchases of fixed assets | (23,311) | (14,402) |
Sale of a subsidiary | (8,713) | |
Other investing activities | 25 | |
Net cash used in investing activities | (751,334) | (226,941) |
Cash Flows from Financing Activities | ||
Borrowings under revolving line of credit | 99,000 | 102,000 |
Repayments under revolving line of credit | (30,000) | (102,000) |
Borrowings under securitization facilities | 408,926 | 312,087 |
Repayments under securitization facilities | (23,213) | (230,952) |
Debt issuance costs paid | (6,277) | (3,744) |
Proceeds from exercise of stock options | 2,998 | 11,441 |
Treasury shares purchased | (104,372) | (4,238) |
Net cash provided by financing activities | 347,062 | 84,594 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (31) | 376 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (12,129) | 77,959 |
Cash, cash equivalents and restricted cash at beginning of year | 225,883 | 369,200 |
Cash, cash equivalents and restricted cash at end of period | 213,754 | 447,159 |
Supplemental Disclosures | ||
Non-cash renewal of loans and finance receivables | $ 151,300 | $ 97,401 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Signifi cant Accou nting Policies Nature of the Company Enova International, Inc. and its subsidiaries (collectively, the “Company”) operates an internet-based lending platform to serve customers in need of cash to fulfill their financial responsibilities. Through a network of direct and indirect marketing channels, the Company offers funds to its customers through a variety of unsecured loan and finance receivable products. The business is operated primarily through the internet to provide convenient, fully-automated financial solutions to its customers. The Company originates, arranges, guarantees or purchases consumer loans and provides financing to small businesses through a line of credit account, installment loan or receivables purchase agreement product (“RPAs”). Consumer loans include installment loans and line of credit accounts. RPAs represent a right to receive future receivables from a small business. The Company also provides services related to third-party lenders’ consumer loan products by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws (“CSO program”). Basis of Presentation The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. The Company consolidates any variable interest entity (“VIE”) where it has been determined it is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The consolidated financial statements presented as of June 30, 2022 and 2021 and for the three and six-month periods ended June 30, 2022 and 2021 are unaudited but, in management’s opinion, include all adjustments necessary for a fair presentation of the results for such interim periods. Operating results for the three and six-month periods are not necessarily indicative of the results that may be expected for the full fiscal year. These consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019 and related notes, which are included on Form 10-K filed with the SEC on February 28, 2022. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): June 30, 2022 2021 Cash and cash equivalents $ 144,090 $ 394,353 Restricted cash 69,664 52,806 Total cash, cash equivalents and restricted cash $ 213,754 $ 447,159 Loans and Finance Receivables The Company utilizes the fair value option on its entire loan and finance receivable portfolio. As such, loans and finance receivables are carried at fair value in the consolidated balance sheet with changes in fair value recorded in the consolidated income statement. To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments, utilization rates and servicing costs over the estimated duration of the underlying assets. Loss, prepayment, utilization and servicing cost assumptions are determined using historical data and include appropriate consideration of recent trends and anticipated future performance. Future cash flows are discounted using a rate of return that the Company believes a market participant would require. Accrued and unpaid interest and fees are included in “Loans and finance receivables at fair value” in the consolidated balance sheets. Current and Delinquent Loans and Finance Receivables The Company classifies its loans and finance receivables as either current or delinquent. Excluding OnDeck loans and finance receivables, when a customer does not make a scheduled payment as of the due date, that payment is considered delinquent, and the remainder of the receivable balance is considered current. If the customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. For the OnDeck portfolio, a loan is considered to be delinquent when the scheduled payments are one day past due. Loans are placed in nonaccrual status and the accrual of interest income is stopped 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 the Company’s judgment, will continue to make periodic principal and interest payments as scheduled. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. Where permitted by law and as long as a loan is not considered delinquent, a customer may choose to renew or extend the due date on certain installment loans. In order to renew or extend a single-pay loan, a customer must agree to pay the current finance charge for the right to make a later payment of the outstanding principal balance plus an additional finance charge. In order to renew an installment loan, the customer enters into a new installment loan contract and agrees to pay the principal balance and finance charge in accordance with the terms of the new loan contract. In response to the COVID-19 pandemic, the Company enhanced the forbearance options on its loan products, offering additional relief to impacted customers with features such as payment deferrals without the incurrence of additional finance charges or late fees. If a loan is deemed to be current and the customer makes a deferral or payment modification, the loan is still deemed to be current until the next scheduled payment is missed. The Company generally charges off loans and finance receivables between 60 and 65 days delinquent. If a loan or finance receivable is deemed uncollectible prior to this, it is charged off at that point. For the OnDeck portfolio, the Company generally charges off a loan when it is probable that it will be unable to collect all of the remaining principal payments, which is generally after 90 days of delinquency and 30 days of non-activity. Loans and finance receivables classified as delinquent generally have an age of one to 64 days from the date any portion of the receivable became delinquent, as defined above. Recoveries on loans and finance receivables that were previously charged off are generally recognized when collected or sold. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. In accordance with Accounting Standards Codification (“ASC”) 350, Goodwill , the Company tests goodwill and intangible assets with an indefinite life for potential impairment annually as of October 1 and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount. The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. In assessing the qualitative factors, management considers relevant events and circumstances including but not limited to macroeconomic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. If the Company determines that the quantitative impairment test is required, management uses the income approach to complete its annual goodwill assessment. The income approach uses future cash flows and estimated terminal values for the Company that are discounted using a market participant perspective to determine the fair value, which is then compared to the carrying value to determine if there is impairment. The income approach includes assumptions about revenue growth rates, operating margins and terminal growth rates discounted by an estimated weighted-average cost of capital derived from other publicly-traded companies that are similar but not identical from an operational and economic standpoint. Revenue Recognition The Company recognizes revenue based on the financing products and services it offers and on loans it acquires. “Revenue” in the consolidated statements of income includes: interest income, finance charges, fees for services provided through the Company’s CSO programs (“CSO fees”), revenue on RPAs, service charges, draw fees, minimum billing fees, purchase fees, origination fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest is generally recognized on an effective yield basis over the contractual term of the loan on installment loans, the estimated outstanding period of the draw on line of credit accounts, or the projected delivery term on RPAs. CSO fees are recognized over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. Marketing Expenses Marketing expenses consist of digital costs, lead purchase costs and offline marketing costs such as television and direct mail advertising. All marketing expenses are expensed as incurred. Equity Method Investments In the second quarter of 2022, the Company sold its remaining interest in On Deck Capital Canada Holdings, Inc. (“OnDeck Canada”), which resulted in a net loss of $ 4.4 million. Prior to this, the Company recorded its interest in OnDeck Canada under the equity method of accounting. As of June 30, 2021 and December 31, 2021, the carrying value of the Company’s investment in OnDeck Canada was $ 13.1 million and $ 13.7 million, respectively, which the Company has included in “Other assets” on the consolidated balance sheets. On February 24, 2021 the Company contributed the platform-as-service business assumed in the OnDeck acquisition to Linear Financial Technologies Holding LLC (“Linear”) in exchange for ownership units in that entity. The Company records its interest in Linear under the equity method of accounting. As of June 30, 2022 and 2021 and December 31, 2021, the carrying value of the Company’s investment in Linear was $ 16.7 million, $ 5.6 million and $ 5.6 million, respectively, which the Company has included in “Other assets” on the consolidated balance sheets. In December 2021, the Company sold a portion of its interest in On Deck Capital Australia PTY LTD (“OnDeck Australia"). Prior to this, the Company had consolidated the financial position and results of operations of OnDeck Australia under the voting interest model. The noncontrolling interest, which is presented as a separate component of consolidated equity, represented the minority owners’ proportionate share of the equity of the entity and was adjusted for the minority owners’ share of the earnings, losses, investments and distributions. Subsequent to the transaction, the Company owns a 20 % equity interest in OnDeck Australia and no longer has control over the entity; as such, the Company has deconsolidated OnDeck Australia from its financial statements and now records its interest under the equity method of accounting. As of June 30, 2022 and December 31, 2021, the carrying value of the Company’s investment in OnDeck Australia was $ 1.4 million and $ 1.8 million, respectively, which the Company has included in “Other assets” on the consolidated balance sheets. Equity method income has been included in “Equity method investment income” in the consolidated income statements. Variable Interest Entities As part of the Company’s overall funding strategy and as part of its efforts to support its liquidity from varying sources, the Company has established a securitization program through several securitization facilities. The Company transfers certain loan receivables to VIEs, which issue notes backed by the underlying loan receivables and are serviced by another wholly-owned subsidiary of the Company. The cash flows from the loans held by the VIEs are used to repay obligations under the notes. The Company is required to evaluate the VIEs for consolidation. The Company has the ability to direct the activities of the VIEs that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, the Company has the right to receive residual payments, which expose it to potentially significant losses and returns. Accordingly, the Company determined it is the primary beneficiary of the VIEs and is required to consolidate them. The assets and liabilities related to the VIEs are included in the Company’s consolidated financial statements and are accounted for as secured borrowings. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions On March 19, 2021, the Company completed the purchase of Pangea Universal Holdings, Inc. (“PUH”), a Chicago-based payments platform offering mobile international money transfer services. In accordance with the terms of the transaction, PUH was merged into Pangea Transfer Company, LLC (“Pangea”) with the separate corporate existence of PUH thereupon ceasing and Pangea continuing as the surviving, wholly-owned subsidiary of the Company. Pangea serves the international money transfer market with a focus on Latin America and Asia. Customers have the option to transfer funds directly into bank accounts or have cash picked up from partners in minutes. The total consideration of $ 32.9 million consisted of $ 30.0 million in cash and $ 2.9 million in loan forgiveness. The Company performed a valuation analysis of identifiable assets acquired and liabilities assumed and allocated the aggregate purchase consideration based on the fair values of those identifiable assets and liabilities. The allocation of the purchase consideration included $ 19.8 million and $ 11.3 million of intangible assets and goodwill, respectively, with all other assets acquired and liabilities assumed being nominal. The operating results of Pangea are included in, but not material to, the Company’s consolidated financial statements from the date of acquisition. Its revenues and cost of revenues are included in “Revenues” and “Change in Fair Value,” respectively, in the Consolidated Statements of Income. |
Loans and Finance Receivables
Loans and Finance Receivables | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans and Finance Receivables | 3. Loans and Finance Receivables Revenue generated from the Company’s loans and finance receivables for the three and six months ended June 30, 2022 and 2021 was as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Consumer loans and finance receivables revenue $ 253,043 $ 174,512 $ 501,590 $ 356,249 Small business loans and finance receivables revenue 149,909 85,561 282,503 161,121 Total loans and finance receivables revenue 402,952 260,073 784,093 517,370 Other 5,038 4,647 9,628 6,794 Total revenue $ 407,990 $ 264,720 $ 793,721 $ 524,164 Loans and Finance Receivables at Fair Value The components of Company-owned loans and finance receivables at June 30, 2022 and 2021 and December 31, 2021 were as follows (dollars in thousands): As of June 30, 2022 Small Consumer Business Total Principal balance - accrual $ 842,351 $ 1,307,587 $ 2,149,938 Principal balance - non-accrual 94,250 56,468 150,718 Total principal balance 936,601 1,364,055 2,300,656 Loans and finance receivables at fair value - accrual 980,668 1,443,061 2,423,729 Loans and finance receivables at fair value - non-accrual 8,460 28,662 37,122 Loans and finance receivables at fair value 989,128 1,471,723 2,460,851 Difference between principal balance and fair value $ 52,527 $ 107,668 $ 160,195 As of June 30, 2021 Small Consumer Business Total Principal balance - accrual $ 551,489 $ 752,239 $ 1,303,728 Principal balance - non-accrual 33,598 29,554 63,152 Total principal balance 585,087 781,793 1,366,880 Loans and finance receivables at fair value - accrual 620,675 769,239 1,389,914 Loans and finance receivables at fair value - non-accrual 3,300 15,489 18,789 Loans and finance receivables at fair value $ 623,975 $ 784,728 $ 1,408,703 Difference between principal balance and fair value $ 38,888 $ 2,935 $ 41,823 As of December 31, 2021 Small Consumer Business Total Principal balance - accrual $ 799,678 $ 967,950 $ 1,767,628 Principal balance - non-accrual 68,073 42,725 110,798 Total principal balance 867,751 1,010,675 1,878,426 Loans and finance receivables at fair value - accrual 885,238 1,051,400 1,936,638 Loans and finance receivables at fair value - non-accrual 4,906 23,146 28,052 Loans and finance receivables at fair value $ 890,144 $ 1,074,546 $ 1,964,690 Difference between principal balance and fair value $ 22,393 $ 63,871 $ 86,264 As of June 30, 2022 and 2021 and December 31, 2021 , the aggregate fair value of loans and finance receivables that were 90 days or more past due was $ 5.5 million, $ 7.5 million and $ 6.4 million, respectively, of which, $ 5.4 million, $ 7.3 million and $ 6.3 million, respectively, was in non-accrual status. The aggregate unpaid principal balance for loans and finance receivables that were 90 days or more past due was $ 11.8 million, $ 14.8 million and $ 12.4 million, respectively. Changes in the fair value of Company-owned loans and finance receivables during the three and six months ended June 30, 2022 and 2021 were as follows (dollars in thousands): Three Months Ended June 30, 2022 Small Consumer Business Total Balance at beginning of period $ 934,351 $ 1,297,533 $ 2,231,884 Originations or acquisitions 388,336 679,233 1,067,569 Interest and fees (1) 253,043 149,909 402,952 Repayments ( 452,651 ) ( 646,188 ) ( 1,098,839 ) Charge-offs, net (2) ( 134,524 ) ( 27,867 ) ( 162,391 ) Net change in fair value (2) 1,446 19,103 20,549 Effect of foreign currency translation ( 873 ) — ( 873 ) Balance at end of period $ 989,128 $ 1,471,723 $ 2,460,851 Three Months Ended June 30, 2021 Small Consumer Business Total Balance at beginning of period $ 581,398 $ 649,313 $ 1,230,711 Originations or acquisitions 261,363 400,699 662,062 Interest and fees (1) 174,512 85,561 260,073 Repayments ( 344,256 ) ( 395,251 ) ( 739,507 ) Charge-offs, net (2) ( 27,050 ) ( 5,102 ) ( 32,152 ) Net change in fair value (2) ( 22,657 ) 50,179 27,522 Effect of foreign currency translation 665 ( 671 ) ( 6 ) Balance at end of period $ 623,975 $ 784,728 $ 1,408,703 Six Months Ended June 30, 2022 Small Consumer Business Total Balance at beginning of period $ 890,144 $ 1,074,546 $ 1,964,690 Originations or acquisitions 751,145 1,337,974 2,089,119 Interest and fees (1) 501,590 282,503 784,093 Repayments ( 904,473 ) ( 1,215,674 ) ( 2,120,147 ) Charge-offs, net (2) ( 271,748 ) ( 48,727 ) ( 320,475 ) Net change in fair value (2) 21,903 41,101 63,004 Effect of foreign currency translation 567 — 567 Balance at end of period $ 989,128 $ 1,471,723 $ 2,460,851 Six Months Ended June 30, 2021 Small Consumer Business Total Balance at beginning of period $ 625,219 $ 616,287 $ 1,241,506 Originations or acquisitions 429,310 722,810 1,152,120 Interest and fees (1) 356,249 161,121 517,370 Repayments ( 711,331 ) ( 764,463 ) ( 1,475,794 ) Charge-offs, net (2) ( 63,458 ) ( 23,144 ) ( 86,602 ) Net change in fair value (2) ( 12,322 ) 73,216 60,894 Effect of foreign currency translation 308 ( 1,099 ) ( 791 ) Balance at end of period $ 623,975 $ 784,728 $ 1,408,703 (1) Included in “Revenue” in the consolidated statements of income. (2) Included in “Change in Fair Value” in the consolidated statements of income. Guarantees of Consumer Loans In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for consumer loans and is required to purchase any defaulted loans it has guaranteed. The guarantee represents an obligation to purchase specific loans that go into default. As of June 30, 2022 and 2021 and December 31, 2021, the consumer loans guaranteed by the Company had an estimated fair value of $ 17.9 million, $ 10.8 million and $ 18.8 million, respectively and an outstanding principal balance of $ 11.9 million, $ 8.3 million and $ 11.8 million, respectively. As of June 30, 2022 and 2021 and December 31, 2021, the amount of consumer loans, including principal, fees and interest, guaranteed by the Company were $ 14.0 million, $ 9.7 million and $ 13.8 million, respectively. These loans are not included in the consolidated balance sheets as the Company does not own the loans prior to default. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 4. Long-term debt The Company’s long-term debt instruments and balances outstanding as of June 30, 2022 and 2021 and December 31, 2021, including maturity date, weighted average interest rate and borrowing capacity as of June 30, 2022, were as follows (dollars in thousands): Weighted Outstanding average Borrowing June 30, December 31, Maturity date interest rate (1) capacity 2022 2021 2021 Funding Debt: 2018-1 Securitization Facility March 2027 (2) 4.91 % $ 200,000 $ 150,000 $ 25,628 $ 72,706 2018-2 Securitization Facility July 2025 (3) 5.30 % 225,000 189,327 4,962 75,000 2018-A Securitization Notes May 2026 — — — 8,107 628 2019-A Securitization Notes June 2026 7.62 % 5,343 5,343 42,154 19,255 ODR 2021-1 Securitization Facility November 2024 (4) 1.18 % 200,000 107,000 — — ODR 2022-1 Securitization Facility June 2025 (5) 2.26 % 420,000 — — — RAOD Securitization Facility December 2023 (6) 3.63 % 236,842 202,632 — 101,000 ODAST III Securitization Notes May 2027 (7) 2.07 % 300,000 300,000 300,000 300,000 Other funding debt (8) Various — — — 32,996 — Total funding debt 3.42 % $ 1,587,185 $ 954,302 $ 413,847 $ 568,589 Corporate Debt: 8.50 % Senior Notes Due 2024 September 2024 8.50 % $ 250,000 $ 250,000 $ 250,000 $ 250,000 8.50 % Senior Notes Due 2025 September 2025 8.50 % 375,000 375,000 375,000 375,000 Revolving line of credit June 2026 5.50 % 440,000 (9) 269,000 — 200,000 Other corporate debt April 2022 — — — 795 — Total corporate debt 7.60 % $ 1,065,000 $ 894,000 $ 625,795 $ 825,000 Less: Long-term debt issuance costs $ ( 6,353 ) $ ( 9,001 ) $ ( 7,608 ) Less: Debt discounts ( 1,284 ) ( 2,153 ) ( 1,582 ) Total long-term debt $ 1,840,665 $ 1,028,488 $ 1,384,399 (1) The weighted average interest rate is determined based on the rates and principal balances on June 30, 2022 . It does not include the impact of the amortization of deferred loan origination costs or debt discounts. (2) The period during which new borrowings may be made under this facility expires in March 2025. (3) The period during which new borrowings may be made under this facility expires in July 2023. (4) The period during which new borrowings may be made under this facility expires in November 2023. (5) The period during which new borrowings may be made under this facility expires in June 2024. (6) The period during which new borrowings may be made under this facility expires in December 2022. (7) The period during which new borrowings may be made under this facility expires in April 2024. (8) These debt facilities supported the Company’s operations in Australia and were denominated in Australian dollars. In December 2021, the Company sold a portion of its interest in OnDeck Australia and, as a result, deconsolidated it, including its long-term debt balances, from the Company's consolidated financial statements. (9) The Company had outstanding letters of credit under the Revolving line of credit of $ 0.8 million, $ 0.5 million and $ 0.8 million as of June 30, 2022 and 2021 and December 31, 2021 , respectively. Weighted average interest rates on long-term debt were 5.84 % and 8.20 % during the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022 and 2021 and December 31, 2021, the Company was in compliance with all covenants and other requirements set forth in the prevailing long-term debt agreements. Recent Updates to Debt Facilities ODR 2022-1 Securitization Facility On June 30, 2022 (the “ODR 2022-1 Closing Date”), the Company and several of its subsidiaries entered into a receivables securitization (the “ODR 2022-1 Securitization Facility”) with lenders party thereto from time to time, BMO Capital Markets Corp. ("BMO") as administrative agent and Deutsche Bank Trust Company Americas as collateral agent. The ODR 2022-1 Securitization Facility finances securitization receivables that have been and will be originated or acquired under the Company’s OnDeck brand by a wholly-owned subsidiary and that meet specified eligibility criteria. Under the ODR 2022-1 Securitization Facility, eligible securitization receivables are sold to a wholly-owned subsidiary of the Company (the “ODR 2022-1 Debtor”) and serviced by another subsidiary of the Company. The ODR 2022-1 Securitization Facility has Class A and Class B revolving commitments of $ 350.0 million and $ 70.0 million, respectively, which are required to be secured by eligible securitization receivables. The ODR 2022-1 Securitization Facility is non-recourse to the Company and matures three years after the ODR 2022-1 Closing Date. As of June 30, 2022, there was no outstanding amount under the ODR 2022-1 Securitization Facility. The ODR 2022-1 Securitization Facility is governed by a credit agreement, dated as of the ODR 2022-1 Closing Date, between the ODR 2022-1 Debtor, the administrative agent, the lenders, and the collateral agent. The revolving Class A loans shall accrue interest at a rate per annum equal to BMO's prime rate plus 1.75 % with an advance rate of 75 %. The revolving Class B loans shall accrue interest at a rate per annum equal to BMO's prime rate plus 7.50 % with an advance rate of 90 %. Interest payments on the ODR 2022-1 Securitization Facility will be made monthly. All amounts due under the ODR 2022-1 Securitization Facility are secured by all of the ODR 2022-1 Debtor’s assets, which include the eligible securitization receivables transferred to the ODR 2022-1 Debtor, related rights under the eligible securitization receivables, a bank account and certain other related collateral. The Company has issued a limited indemnity to the lenders for certain “bad acts,” and the Company has agreed for the benefit of the lenders to meet certain ongoing financial performance covenants. The ODR 2022-1 Securitization Facility documents contain customary provisions for securitizations, including representations and warranties as to the eligibility of the eligible securitization receivables and other matters; indemnification for specified losses not including losses due to the inability of customers to repay their loans or lines of credit; covenants regarding special purpose entity matters; and default and termination provisions which provide for the acceleration of the ODR 2022-1 Securitization Facility in circumstances including, but not limited to, failure to make payments when due, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the eligible securitization receivables, and defaults under other material indebtedness of the ODR 2022-1 Debtor. Revolving Credit Facility On June 23, 2022, the Company and certain of its subsidiaries amended and restated the existing secured revolving credit agreement, dated as of June 30, 2017 (as amended, the "Credit Agreement") with the lenders from time to time party thereto, Bank of Montreal, as administrative agent and collateral agent, and BMO Capital Markets, Axos Bank, and Synovus Bank, as the joint lead arrangers and joint lead bookrunners. Bank of Montreal replaces TBK Bank, SSB, as administrative agent. The Credit Agreement provides for a secured asset-backed revolving credit facility in an aggregate principal amount of up to $ 440.0 million, with a $ 20.0 million letter of credit sublimit and a $ 10.0 million swingline loan sublimit. The proceeds of the loans under the Credit Agreement may be used for working capital and other general business purposes. The loans bear interest, at the Company’s option, at the Secured Overnight Financing Rate plus 3.50 % or the base rate, as defined in the Credit Agreement, plus 0.75 % with an advance rate of 75 %. In addition to customary fees for a credit facility of this size and type, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the commitment, and ranges from 0.15 % per annum to 0.50 % per annum depending on usage. The Credit Agreement contains certain prepayment penalties if it is terminated on or before the first and second anniversary dates, subject to certain exceptions. The loans mature on June 30, 2026 . The Credit Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, enter into certain transactions with affiliates, make restricted payments, and enter into restrictive agreements, in each case subject to customary exceptions for a credit facility of this size and type. The Credit Agreement includes financial maintenance covenants, which require the Company to maintain compliance with a minimum fixed charge coverage ratio and a maximum consolidated leverage ratio, each determined in accordance with the terms of the Credit Agreement. The Credit Agreement also contains environmental, social, and governance provisions allowing amendment of the Credit Agreement to reflect subsequently agreed upon key performance indicators with respect to sustainability targets, achievement of which would result in adjustments to the commitment fee and applicable margins. 2018-2 Securitization Facility On March 14, 2022, the loan securitization facility for EFR 2018-2, LLC (the “2018-2 Securitization Facility”) was amended to, among other changes, increase the commitment amount of the Class A revolving loans from $ 133.3 million to $ 200.0 million and the commitment amount of the Class B revolving loans from $ 16.7 million to $ 25.0 million. RAOD Securitization Facility On March 18, 2022, the loan securitization facility for Receivable Assets of OnDeck, LLC (the “RAOD Securitization Facility”) was amended to, among other changes, increase the commitment amount of the Class A revolving loans from $ 150.0 million to $ 200.0 million and the commitment amount of the Class B revolving loans from $ 27.6 million to $ 36.8 million. 2018-1 Securitization Facility On March 24, 2022, the loan securitization facility for EFR 2018-1, LLC (the “2018-1 Securitization Facility”) was amended to, among other changes, increase the commitment amount of the revolving loans from $ 150.0 million to $ 200.0 million and extend the maturity date from September 15, 2026 to March 24, 2027 . ODR 2021-1 Securitization Facility On March 29, 2022, the loan securitization facility for OnDeck Receivables 2021, LLC (the “ODR 2021-1 Securitization Facility”) was amended to, among other changes, increase the commitment amount of the revolving loans from $ 150.0 million to $ 200.0 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s effective tax rate for the six months ended June 30, 2022 was 24.1 %, compared to 24.6 % for the six months ended June 30, 2021. The decrease is primarily attributable to stock-based compensation deductions that occurred at favorable fair market values. As of June 30, 2022, the balance of unrecognized tax benefits was $ 64.7 million, which is included in “Accounts payable and accrued expenses” on the consolidated balance sheet, $ 10.4 million of which, if recognized, would favorably affect the effective tax rate in the period of recognition. The Company had $ 39.1 million and $ 44.1 million of unrecognized tax benefits as of June 30, 2021 and December 31, 2021, respectively. The Company believes that it has adequately accounted for any material tax uncertainties in its existing reserves for all open tax years. The Company’s U.S. tax returns are subject to examination by federal and state taxing authorities. The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including 2017. However, the 2014 tax year is still open to the extent of the net operating loss that was carried back from the 2019 tax return. The years open to examination by state, local and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three years from the date the tax return is filed. For jurisdictions that have generated net operating losses, carryovers may be subject to the statute of limitations applicable for the year those carryovers are utilized. In these cases, the period for which the losses may be adjusted will extend to conform with the statute of limitations for the year in which the losses are utilized. In most circumstances, this is expected to increase the length of time that the applicable taxing authority may examine the carryovers by one year or longer, in limited cases. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time. The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three and six months ended June 30, 2022 and 2021 (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Numerator: Net income $ 52,401 $ 80,177 $ 104,844 $ 156,097 Denominator: Total weighted average basic shares 32,497 36,801 32,933 36,457 Shares applicable to stock-based compensation 987 1,341 1,248 1,359 Total weighted average diluted shares 33,484 38,142 34,181 37,816 Earnings per common share: Earnings per common share – basic $ 1.61 $ 2.18 $ 3.18 $ 4.28 Earnings per common share – diluted $ 1.56 $ 2.10 $ 3.07 $ 4.13 For the three months ended June 30, 2022 and 2021 , 325,560 and 20,945 shares of common stock underlying stock options, respectively, and 486,073 and 34,601 shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. For the six months ended June 30, 2022 and 2021 , 275,489 and 20,945 shares of common stock underlying stock options, respectively, and 385,980 and 57,324 shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. |
Operating Segment Information
Operating Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Operating Segment Information | 7. Operating Segment Information The Company provides or had provided online financial services to non-prime credit consumers and small businesses in the United States, Australia and Brazil and has one reportable segment. The Company has aggregated all components of its business into a single operating segment based on the similarities of the economic characteristics, the nature of the products and services, the nature of the production and distribution methods, the shared technology platforms, the type of customer and the nature of the regulatory environment. Geographic Information The following table presents the Company’s revenue by geographic region for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue United States $ 404,538 $ 258,555 $ 786,694 $ 513,421 Other international countries 3,452 6,165 7,027 10,743 Total revenue $ 407,990 $ 264,720 $ 793,721 $ 524,164 The Company’s long-lived assets, which consist of the Company’s property and equipment, were $ 88.6 million, $ 80.4 million and $ 78.4 million at June 30, 2022 and 2021 and December 31, 2021 , respectively. The operations for the Company’s businesses are primarily located within the United States, and the value of any long-lived assets located outside of the United States is immaterial. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Litigation On April 23, 2018, the Commonwealth of Virginia, through Attorney General Mark R. Herring, filed a lawsuit in the Circuit Court for the County of Fairfax, Virginia against NC Financial Solutions of Utah, LLC (“NC Utah”), a subsidiary of the Company. The lawsuit alleges violations of the Virginia Consumer Protection Act (“VCPA”) relating to NC Utah’s communications with customers, collections of certain payments, its loan agreements, and the rates it charged to Virginia borrowers. The plaintiff sought to enjoin NC Utah from continuing its then-existing lending practices in Virginia, and still seeks restitution, civil penalties, and costs and expenses in connection with the same. Due to a change in the law, NC Utah no longer lends to Virginia residents and the injunctive remedies sought against NC Utah’s lending practices are no longer applicable. Neither the likelihood of an unfavorable decision nor the ultimate liability, if any, with respect to this matter can be determined at this time, and the Company is currently unable to estimate a range of reasonably possible losses, as defined by ASC 450-20-20, Contingencies–Loss Contingencies–Glossary , for this litigation. The Company carefully considered applicable Virginia law before NC Utah began lending in Virginia and, as a result, believes that the Plaintiff’s claims in the complaint are without merit and intends to vigorously defend this lawsuit. The Company is also involved in certain routine legal proceedings, claims and litigation matters encountered in the ordinary course of its business. Certain of these matters may be covered to an extent by insurance or by indemnification agreements with third parties. The Company has recorded accruals in its consolidated financial statements for those matters in which it is probable that it has incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position, results of operations or liquidity. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions In October 2019, the Company announced its intent to exit its operations in the U.K. market, and Grant Thornton LLP, a licensed U.K. insolvency practitioner, was appointed as administrators (“Administrators”) to take control of management of the U.K. businesses. The effect of the U.K. businesses’ entry into administration was to place their management, affairs, business and property under the direct control of the Administrators. The Company entered into a service agreement with the Administrators under which the Company provides certain administrative, technical and other services in exchange for compensation by the Administrators. The agreement expired on July 8, 2022 . During the three months ended June 30, 2022 and 2021, the Company recorded $ 0.2 million and $ 0.9 million , respectively, and during the six months ended June 30, 2022 and 2021, the Company recorded $ 0.4 million and $ 1.6 million , respectively, in revenue related to these services. As of June 30, 2022 and 2021 and December 31, 2021, the Administrators owed the Company less than $ 0.1 million, $ 2.1 million and $ 0.5 million, respectively, related to services provided. In the second quarter of 2022, the Company sold its remaining interest in On Deck Capital Canada Holdings, Inc. (“OnDeck Canada”). Prior to this, the Company recorded its interest in OnDeck Canada under the equity method of accounting; as such, OnDeck Canada was deemed a related party. As of June 30, 2022 the Company had no outstanding affiliate balance with OnDeck Canada. As of June 30, 2021 and December 31, 2021, the Company had a due from affiliate balance of $ 1.2 million related to OnDeck Canada that was primarily the result of labor and software charges from people and technology assets at the OnDeck parent company. On February 24, 2021, the Company contributed the platform-as-service business assumed in the OnDeck acquisition to Linear in exchange for ownership units in that entity. The Company records its interest in Linear under the equity method of accounting. As of June 30, 2022 , there was no outstanding balance between Linear and the Company. As of June 30, 2021, the Company had a due to affiliate balance of $ 0.8 million that was primarily comprised of the remaining balances associated with the contribution and exchange. As of December 31, 2021, the Company had a due from affiliate balance of $ 2.9 million from Linear that was primarily comprised of reimbursable expenses paid by the Company on behalf of Linear and fees for services provided. In December 2021, the Company divested a portion of its interest in OnDeck Australia and began recording its remaining interest utilizing the equity method of accounting. As of June 30, 2022, the Company had a due from affiliate balance of $ 0.1 million related to OnDeck Australia. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements Recurring Fair Value Measurements The Company uses a hierarchical framework that prioritizes and ranks the market observability of inputs used in its fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable. Level 3: Unobservable inputs for the asset or liability measured. Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level of input that is significant to the entire measurement. Such determination requires significant management judgment. During the three and six months ended June 30, 2022 and 2021 , there were no transfers of assets or liabilities in or out of Level 3 fair value measurements. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values. The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2022 and 2021 and December 31, 2021 are as follows (dollars in thousands): June 30, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 989,128 $ — $ — $ 989,128 Small business loans and finance receivables (1)(2) 1,471,723 — — 1,471,723 Non-qualified savings plan assets (3) 5,567 5,567 — — Investment in trading security (4) 17,871 17,871 — — Total $ 2,484,289 $ 23,438 $ — $ 2,460,851 June 30, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 623,975 $ — $ — $ 623,975 Small business loans and finance receivables (1)(2) 784,728 — — 784,728 Non-qualified savings plan assets (3) 5,156 5,156 — — Investment in trading security (4) 19,931 19,931 — — Total $ 1,433,790 $ 25,087 $ — $ 1,408,703 December 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 890,144 $ — $ — $ 890,144 Small business loans and finance receivables (1)(2) 1,074,546 — — 1,074,546 Non-qualified savings plan assets (3) 5,561 5,561 — — Investment in trading security (4) 16,062 16,062 — — Total $ 1,986,313 $ 21,623 $ — $ 1,964,690 (1) Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets. (2) Consumer loans and finance receivables include $ 435.6 million , $ 163.6 million and $ 274.5 million in assets of consolidated VIEs as of June 30, 2022 and 2021 and December 31, 2021, respectively. Small business loans and finance receivables include $ 758.5 million , $ 369.6 million and $ 470.8 million in assets of consolidated VIEs as of June 30, 2022 and 2021 and December 31, 2021 , respectively. (3) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. (4) Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets. The Company primarily estimates the fair value of its loan and finance receivables portfolio using discounted cash flow models that have been internally developed. The models use inputs, such as estimated losses, prepayments, utilization rates, servicing costs and discount rates, that are unobservable but reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. Certain unobservable inputs may, in isolation, have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. An increase to the net loss rate, prepayment rate, servicing cost, or discount rate would decrease the fair value of the Company’s loans and finance receivables. When multiple inputs are used within the valuation techniques for loans, a change in one input in a certain direction may be offset by an opposite change from another input. The fair value of the nonqualified savings plan assets was deemed Level 1 as they are publicly traded equity securities for which market prices of identical assets are readily observable. The fair value of the investment in trading security was deemed Level 1 as it is a publicly traded fund with active market pricing that is readily available. The Company had no liabilities measured at fair value on a recurring basis as of June 30, 2022 and 2021 and December 31, 2021. Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a non-recurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. At June 30, 2022 and 2021 and December 31, 2021 , there were no assets or liabilities recorded at fair value on a non-recurring basis. Financial Assets and Liabilities Not Measured at Fair Value The Company’s financial assets and liabilities as of June 30, 2022 and 2021 and December 31, 2021 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): Balance at June 30, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 144,090 $ 144,090 $ — $ — Restricted cash (1) 69,664 69,664 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 220,672 $ 213,754 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 269,000 $ — $ — $ 269,000 Securitization notes 953,017 — 932,700 — 8.50 % senior notes due 2024 250,000 — 232,438 — 8.50 % senior notes due 2025 375,000 — 326,168 — Total $ 1,847,017 $ — $ 1,491,306 $ 269,000 Balance at June 30, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 394,353 $ 394,353 $ — $ — Restricted cash (1) 52,806 52,806 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 454,077 $ 447,159 $ — $ 6,918 Financial liabilities: Securitization notes $ 411,694 $ — $ 416,251 $ — 8.50 % senior notes due 2024 250,000 — 254,305 — 8.50 % senior notes due 2025 375,000 — 388,620 — Other long-term debt 795 — — 795 Total $ 1,037,489 $ — $ 1,059,176 $ 795 Balance at December 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 165,477 $ 165,477 $ — $ — Restricted cash (1) 60,406 60,406 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 232,801 $ 225,883 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 200,000 $ — $ — $ 200,000 Securitization notes 567,007 — 567,903 — 8.50 % senior notes due 2024 250,000 — 254,693 — 8.50 % senior notes due 2025 375,000 — 386,348 — Total $ 1,392,007 $ — $ 1,208,944 $ 200,000 (1) Restricted cash includes $ 56.2 million , $ 42.8 million and $ 45.7 million in assets of consolidated VIEs as of June 30, 2022 and 2021 and December 31, 2021 , respectively. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. Cash and cash equivalents and restricted cash bear interest at market rates and have maturities of less than 90 days. The carrying amount of restricted cash and cash equivalents approximates fair value. The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date. The Company measures the fair value of its revolving line of credit using Level 3 inputs. The Company considered the fair value of its other long-term debt and the timing of expected payment(s). The fair values of the Company’s Securitization Notes and senior notes are estimated based on quoted prices in markets that are not active, which are deemed Level 2 inputs. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events Subsequent events have been reviewed through the date these financial statements were issued. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. The Company consolidates any variable interest entity (“VIE”) where it has been determined it is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The consolidated financial statements presented as of June 30, 2022 and 2021 and for the three and six-month periods ended June 30, 2022 and 2021 are unaudited but, in management’s opinion, include all adjustments necessary for a fair presentation of the results for such interim periods. Operating results for the three and six-month periods are not necessarily indicative of the results that may be expected for the full fiscal year. These consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019 and related notes, which are included on Form 10-K filed with the SEC on February 28, 2022. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): June 30, 2022 2021 Cash and cash equivalents $ 144,090 $ 394,353 Restricted cash 69,664 52,806 Total cash, cash equivalents and restricted cash $ 213,754 $ 447,159 |
Loans and Finance Receivables | Loans and Finance Receivables The Company utilizes the fair value option on its entire loan and finance receivable portfolio. As such, loans and finance receivables are carried at fair value in the consolidated balance sheet with changes in fair value recorded in the consolidated income statement. To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments, utilization rates and servicing costs over the estimated duration of the underlying assets. Loss, prepayment, utilization and servicing cost assumptions are determined using historical data and include appropriate consideration of recent trends and anticipated future performance. Future cash flows are discounted using a rate of return that the Company believes a market participant would require. Accrued and unpaid interest and fees are included in “Loans and finance receivables at fair value” in the consolidated balance sheets. |
Current and Delinquent Loans and Finance Receivables | Current and Delinquent Loans and Finance Receivables The Company classifies its loans and finance receivables as either current or delinquent. Excluding OnDeck loans and finance receivables, when a customer does not make a scheduled payment as of the due date, that payment is considered delinquent, and the remainder of the receivable balance is considered current. If the customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. For the OnDeck portfolio, a loan is considered to be delinquent when the scheduled payments are one day past due. Loans are placed in nonaccrual status and the accrual of interest income is stopped 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 the Company’s judgment, will continue to make periodic principal and interest payments as scheduled. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period. Where permitted by law and as long as a loan is not considered delinquent, a customer may choose to renew or extend the due date on certain installment loans. In order to renew or extend a single-pay loan, a customer must agree to pay the current finance charge for the right to make a later payment of the outstanding principal balance plus an additional finance charge. In order to renew an installment loan, the customer enters into a new installment loan contract and agrees to pay the principal balance and finance charge in accordance with the terms of the new loan contract. In response to the COVID-19 pandemic, the Company enhanced the forbearance options on its loan products, offering additional relief to impacted customers with features such as payment deferrals without the incurrence of additional finance charges or late fees. If a loan is deemed to be current and the customer makes a deferral or payment modification, the loan is still deemed to be current until the next scheduled payment is missed. The Company generally charges off loans and finance receivables between 60 and 65 days delinquent. If a loan or finance receivable is deemed uncollectible prior to this, it is charged off at that point. For the OnDeck portfolio, the Company generally charges off a loan when it is probable that it will be unable to collect all of the remaining principal payments, which is generally after 90 days of delinquency and 30 days of non-activity. Loans and finance receivables classified as delinquent generally have an age of one to 64 days from the date any portion of the receivable became delinquent, as defined above. Recoveries on loans and finance receivables that were previously charged off are generally recognized when collected or sold. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. In accordance with Accounting Standards Codification (“ASC”) 350, Goodwill , the Company tests goodwill and intangible assets with an indefinite life for potential impairment annually as of October 1 and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount. The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. In assessing the qualitative factors, management considers relevant events and circumstances including but not limited to macroeconomic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. If the Company determines that the quantitative impairment test is required, management uses the income approach to complete its annual goodwill assessment. The income approach uses future cash flows and estimated terminal values for the Company that are discounted using a market participant perspective to determine the fair value, which is then compared to the carrying value to determine if there is impairment. The income approach includes assumptions about revenue growth rates, operating margins and terminal growth rates discounted by an estimated weighted-average cost of capital derived from other publicly-traded companies that are similar but not identical from an operational and economic standpoint. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue based on the financing products and services it offers and on loans it acquires. “Revenue” in the consolidated statements of income includes: interest income, finance charges, fees for services provided through the Company’s CSO programs (“CSO fees”), revenue on RPAs, service charges, draw fees, minimum billing fees, purchase fees, origination fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest is generally recognized on an effective yield basis over the contractual term of the loan on installment loans, the estimated outstanding period of the draw on line of credit accounts, or the projected delivery term on RPAs. CSO fees are recognized over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer. |
Marketing Expenses | Marketing Expenses Marketing expenses consist of digital costs, lead purchase costs and offline marketing costs such as television and direct mail advertising. All marketing expenses are expensed as incurred. |
Equity Method Investments | Equity Method Investments In the second quarter of 2022, the Company sold its remaining interest in On Deck Capital Canada Holdings, Inc. (“OnDeck Canada”), which resulted in a net loss of $ 4.4 million. Prior to this, the Company recorded its interest in OnDeck Canada under the equity method of accounting. As of June 30, 2021 and December 31, 2021, the carrying value of the Company’s investment in OnDeck Canada was $ 13.1 million and $ 13.7 million, respectively, which the Company has included in “Other assets” on the consolidated balance sheets. On February 24, 2021 the Company contributed the platform-as-service business assumed in the OnDeck acquisition to Linear Financial Technologies Holding LLC (“Linear”) in exchange for ownership units in that entity. The Company records its interest in Linear under the equity method of accounting. As of June 30, 2022 and 2021 and December 31, 2021, the carrying value of the Company’s investment in Linear was $ 16.7 million, $ 5.6 million and $ 5.6 million, respectively, which the Company has included in “Other assets” on the consolidated balance sheets. In December 2021, the Company sold a portion of its interest in On Deck Capital Australia PTY LTD (“OnDeck Australia"). Prior to this, the Company had consolidated the financial position and results of operations of OnDeck Australia under the voting interest model. The noncontrolling interest, which is presented as a separate component of consolidated equity, represented the minority owners’ proportionate share of the equity of the entity and was adjusted for the minority owners’ share of the earnings, losses, investments and distributions. Subsequent to the transaction, the Company owns a 20 % equity interest in OnDeck Australia and no longer has control over the entity; as such, the Company has deconsolidated OnDeck Australia from its financial statements and now records its interest under the equity method of accounting. As of June 30, 2022 and December 31, 2021, the carrying value of the Company’s investment in OnDeck Australia was $ 1.4 million and $ 1.8 million, respectively, which the Company has included in “Other assets” on the consolidated balance sheets. Equity method income has been included in “Equity method investment income” in the consolidated income statements. |
Variable Interest Entities | Variable Interest Entities As part of the Company’s overall funding strategy and as part of its efforts to support its liquidity from varying sources, the Company has established a securitization program through several securitization facilities. The Company transfers certain loan receivables to VIEs, which issue notes backed by the underlying loan receivables and are serviced by another wholly-owned subsidiary of the Company. The cash flows from the loans held by the VIEs are used to repay obligations under the notes. The Company is required to evaluate the VIEs for consolidation. The Company has the ability to direct the activities of the VIEs that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, the Company has the right to receive residual payments, which expose it to potentially significant losses and returns. Accordingly, the Company determined it is the primary beneficiary of the VIEs and is required to consolidate them. The assets and liabilities related to the VIEs are included in the Company’s consolidated financial statements and are accounted for as secured borrowings. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands): June 30, 2022 2021 Cash and cash equivalents $ 144,090 $ 394,353 Restricted cash 69,664 52,806 Total cash, cash equivalents and restricted cash $ 213,754 $ 447,159 |
Loans and Finance Receivables (
Loans and Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Revenue Generated from Loans and Finance Receivables | Revenue generated from the Company’s loans and finance receivables for the three and six months ended June 30, 2022 and 2021 was as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Consumer loans and finance receivables revenue $ 253,043 $ 174,512 $ 501,590 $ 356,249 Small business loans and finance receivables revenue 149,909 85,561 282,503 161,121 Total loans and finance receivables revenue 402,952 260,073 784,093 517,370 Other 5,038 4,647 9,628 6,794 Total revenue $ 407,990 $ 264,720 $ 793,721 $ 524,164 |
Components of Company-owned Loans and Finance Receivables at Fair Value | The components of Company-owned loans and finance receivables at June 30, 2022 and 2021 and December 31, 2021 were as follows (dollars in thousands): As of June 30, 2022 Small Consumer Business Total Principal balance - accrual $ 842,351 $ 1,307,587 $ 2,149,938 Principal balance - non-accrual 94,250 56,468 150,718 Total principal balance 936,601 1,364,055 2,300,656 Loans and finance receivables at fair value - accrual 980,668 1,443,061 2,423,729 Loans and finance receivables at fair value - non-accrual 8,460 28,662 37,122 Loans and finance receivables at fair value 989,128 1,471,723 2,460,851 Difference between principal balance and fair value $ 52,527 $ 107,668 $ 160,195 As of June 30, 2021 Small Consumer Business Total Principal balance - accrual $ 551,489 $ 752,239 $ 1,303,728 Principal balance - non-accrual 33,598 29,554 63,152 Total principal balance 585,087 781,793 1,366,880 Loans and finance receivables at fair value - accrual 620,675 769,239 1,389,914 Loans and finance receivables at fair value - non-accrual 3,300 15,489 18,789 Loans and finance receivables at fair value $ 623,975 $ 784,728 $ 1,408,703 Difference between principal balance and fair value $ 38,888 $ 2,935 $ 41,823 As of December 31, 2021 Small Consumer Business Total Principal balance - accrual $ 799,678 $ 967,950 $ 1,767,628 Principal balance - non-accrual 68,073 42,725 110,798 Total principal balance 867,751 1,010,675 1,878,426 Loans and finance receivables at fair value - accrual 885,238 1,051,400 1,936,638 Loans and finance receivables at fair value - non-accrual 4,906 23,146 28,052 Loans and finance receivables at fair value $ 890,144 $ 1,074,546 $ 1,964,690 Difference between principal balance and fair value $ 22,393 $ 63,871 $ 86,264 |
Schedule of Changes in Fair Value of Company-owned Loans and Finance Receivables | Changes in the fair value of Company-owned loans and finance receivables during the three and six months ended June 30, 2022 and 2021 were as follows (dollars in thousands): Three Months Ended June 30, 2022 Small Consumer Business Total Balance at beginning of period $ 934,351 $ 1,297,533 $ 2,231,884 Originations or acquisitions 388,336 679,233 1,067,569 Interest and fees (1) 253,043 149,909 402,952 Repayments ( 452,651 ) ( 646,188 ) ( 1,098,839 ) Charge-offs, net (2) ( 134,524 ) ( 27,867 ) ( 162,391 ) Net change in fair value (2) 1,446 19,103 20,549 Effect of foreign currency translation ( 873 ) — ( 873 ) Balance at end of period $ 989,128 $ 1,471,723 $ 2,460,851 Three Months Ended June 30, 2021 Small Consumer Business Total Balance at beginning of period $ 581,398 $ 649,313 $ 1,230,711 Originations or acquisitions 261,363 400,699 662,062 Interest and fees (1) 174,512 85,561 260,073 Repayments ( 344,256 ) ( 395,251 ) ( 739,507 ) Charge-offs, net (2) ( 27,050 ) ( 5,102 ) ( 32,152 ) Net change in fair value (2) ( 22,657 ) 50,179 27,522 Effect of foreign currency translation 665 ( 671 ) ( 6 ) Balance at end of period $ 623,975 $ 784,728 $ 1,408,703 Six Months Ended June 30, 2022 Small Consumer Business Total Balance at beginning of period $ 890,144 $ 1,074,546 $ 1,964,690 Originations or acquisitions 751,145 1,337,974 2,089,119 Interest and fees (1) 501,590 282,503 784,093 Repayments ( 904,473 ) ( 1,215,674 ) ( 2,120,147 ) Charge-offs, net (2) ( 271,748 ) ( 48,727 ) ( 320,475 ) Net change in fair value (2) 21,903 41,101 63,004 Effect of foreign currency translation 567 — 567 Balance at end of period $ 989,128 $ 1,471,723 $ 2,460,851 Six Months Ended June 30, 2021 Small Consumer Business Total Balance at beginning of period $ 625,219 $ 616,287 $ 1,241,506 Originations or acquisitions 429,310 722,810 1,152,120 Interest and fees (1) 356,249 161,121 517,370 Repayments ( 711,331 ) ( 764,463 ) ( 1,475,794 ) Charge-offs, net (2) ( 63,458 ) ( 23,144 ) ( 86,602 ) Net change in fair value (2) ( 12,322 ) 73,216 60,894 Effect of foreign currency translation 308 ( 1,099 ) ( 791 ) Balance at end of period $ 623,975 $ 784,728 $ 1,408,703 (1) Included in “Revenue” in the consolidated statements of income. (2) Included in “Change in Fair Value” in the consolidated statements of income. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt Instruments and Balances Outstanding Including Maturity Date, Weighted Average Interest Rate and Borrowing Capacity | The Company’s long-term debt instruments and balances outstanding as of June 30, 2022 and 2021 and December 31, 2021, including maturity date, weighted average interest rate and borrowing capacity as of June 30, 2022, were as follows (dollars in thousands): Weighted Outstanding average Borrowing June 30, December 31, Maturity date interest rate (1) capacity 2022 2021 2021 Funding Debt: 2018-1 Securitization Facility March 2027 (2) 4.91 % $ 200,000 $ 150,000 $ 25,628 $ 72,706 2018-2 Securitization Facility July 2025 (3) 5.30 % 225,000 189,327 4,962 75,000 2018-A Securitization Notes May 2026 — — — 8,107 628 2019-A Securitization Notes June 2026 7.62 % 5,343 5,343 42,154 19,255 ODR 2021-1 Securitization Facility November 2024 (4) 1.18 % 200,000 107,000 — — ODR 2022-1 Securitization Facility June 2025 (5) 2.26 % 420,000 — — — RAOD Securitization Facility December 2023 (6) 3.63 % 236,842 202,632 — 101,000 ODAST III Securitization Notes May 2027 (7) 2.07 % 300,000 300,000 300,000 300,000 Other funding debt (8) Various — — — 32,996 — Total funding debt 3.42 % $ 1,587,185 $ 954,302 $ 413,847 $ 568,589 Corporate Debt: 8.50 % Senior Notes Due 2024 September 2024 8.50 % $ 250,000 $ 250,000 $ 250,000 $ 250,000 8.50 % Senior Notes Due 2025 September 2025 8.50 % 375,000 375,000 375,000 375,000 Revolving line of credit June 2026 5.50 % 440,000 (9) 269,000 — 200,000 Other corporate debt April 2022 — — — 795 — Total corporate debt 7.60 % $ 1,065,000 $ 894,000 $ 625,795 $ 825,000 Less: Long-term debt issuance costs $ ( 6,353 ) $ ( 9,001 ) $ ( 7,608 ) Less: Debt discounts ( 1,284 ) ( 2,153 ) ( 1,582 ) Total long-term debt $ 1,840,665 $ 1,028,488 $ 1,384,399 (1) The weighted average interest rate is determined based on the rates and principal balances on June 30, 2022 . It does not include the impact of the amortization of deferred loan origination costs or debt discounts. (2) The period during which new borrowings may be made under this facility expires in March 2025. (3) The period during which new borrowings may be made under this facility expires in July 2023. (4) The period during which new borrowings may be made under this facility expires in November 2023. (5) The period during which new borrowings may be made under this facility expires in June 2024. (6) The period during which new borrowings may be made under this facility expires in December 2022. (7) The period during which new borrowings may be made under this facility expires in April 2024. (8) These debt facilities supported the Company’s operations in Australia and were denominated in Australian dollars. In December 2021, the Company sold a portion of its interest in OnDeck Australia and, as a result, deconsolidated it, including its long-term debt balances, from the Company's consolidated financial statements. (9) The Company had outstanding letters of credit under the Revolving line of credit of $ 0.8 million, $ 0.5 million and $ 0.8 million as of June 30, 2022 and 2021 and December 31, 2021 , respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations | The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three and six months ended June 30, 2022 and 2021 (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Numerator: Net income $ 52,401 $ 80,177 $ 104,844 $ 156,097 Denominator: Total weighted average basic shares 32,497 36,801 32,933 36,457 Shares applicable to stock-based compensation 987 1,341 1,248 1,359 Total weighted average diluted shares 33,484 38,142 34,181 37,816 Earnings per common share: Earnings per common share – basic $ 1.61 $ 2.18 $ 3.18 $ 4.28 Earnings per common share – diluted $ 1.56 $ 2.10 $ 3.07 $ 4.13 |
Operating Segment Information (
Operating Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Company's Revenue by Geographical Region | The following table presents the Company’s revenue by geographic region for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue United States $ 404,538 $ 258,555 $ 786,694 $ 513,421 Other international countries 3,452 6,165 7,027 10,743 Total revenue $ 407,990 $ 264,720 $ 793,721 $ 524,164 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2022 and 2021 and December 31, 2021 are as follows (dollars in thousands): June 30, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 989,128 $ — $ — $ 989,128 Small business loans and finance receivables (1)(2) 1,471,723 — — 1,471,723 Non-qualified savings plan assets (3) 5,567 5,567 — — Investment in trading security (4) 17,871 17,871 — — Total $ 2,484,289 $ 23,438 $ — $ 2,460,851 June 30, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 623,975 $ — $ — $ 623,975 Small business loans and finance receivables (1)(2) 784,728 — — 784,728 Non-qualified savings plan assets (3) 5,156 5,156 — — Investment in trading security (4) 19,931 19,931 — — Total $ 1,433,790 $ 25,087 $ — $ 1,408,703 December 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 890,144 $ — $ — $ 890,144 Small business loans and finance receivables (1)(2) 1,074,546 — — 1,074,546 Non-qualified savings plan assets (3) 5,561 5,561 — — Investment in trading security (4) 16,062 16,062 — — Total $ 1,986,313 $ 21,623 $ — $ 1,964,690 (1) Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets. (2) Consumer loans and finance receivables include $ 435.6 million , $ 163.6 million and $ 274.5 million in assets of consolidated VIEs as of June 30, 2022 and 2021 and December 31, 2021, respectively. Small business loans and finance receivables include $ 758.5 million , $ 369.6 million and $ 470.8 million in assets of consolidated VIEs as of June 30, 2022 and 2021 and December 31, 2021 , respectively. (3) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. (4) Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets. |
Financial Assets and Liabilities Not Measured at Fair Value | The Company’s financial assets and liabilities as of June 30, 2022 and 2021 and December 31, 2021 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands): Balance at June 30, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 144,090 $ 144,090 $ — $ — Restricted cash (1) 69,664 69,664 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 220,672 $ 213,754 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 269,000 $ — $ — $ 269,000 Securitization notes 953,017 — 932,700 — 8.50 % senior notes due 2024 250,000 — 232,438 — 8.50 % senior notes due 2025 375,000 — 326,168 — Total $ 1,847,017 $ — $ 1,491,306 $ 269,000 Balance at June 30, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 394,353 $ 394,353 $ — $ — Restricted cash (1) 52,806 52,806 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 454,077 $ 447,159 $ — $ 6,918 Financial liabilities: Securitization notes $ 411,694 $ — $ 416,251 $ — 8.50 % senior notes due 2024 250,000 — 254,305 — 8.50 % senior notes due 2025 375,000 — 388,620 — Other long-term debt 795 — — 795 Total $ 1,037,489 $ — $ 1,059,176 $ 795 Balance at December 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 165,477 $ 165,477 $ — $ — Restricted cash (1) 60,406 60,406 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 232,801 $ 225,883 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 200,000 $ — $ — $ 200,000 Securitization notes 567,007 — 567,903 — 8.50 % senior notes due 2024 250,000 — 254,693 — 8.50 % senior notes due 2025 375,000 — 386,348 — Total $ 1,392,007 $ — $ 1,208,944 $ 200,000 (1) Restricted cash includes $ 56.2 million , $ 42.8 million and $ 45.7 million in assets of consolidated VIEs as of June 30, 2022 and 2021 and December 31, 2021 , respectively. (2) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Significant Accounting Policies [Line Items] | ||||
Days for delinquent loans remaining principal payment | 90 days | |||
Non activity loans and finance receivables period | 30 days | |||
OnDeck Australia | ||||
Significant Accounting Policies [Line Items] | ||||
Equity interest percentage | 20% | 20% | ||
OnDeck Canada | ||||
Significant Accounting Policies [Line Items] | ||||
Net loss on sale of equity method investments | $ (4.4) | |||
Linear | ||||
Significant Accounting Policies [Line Items] | ||||
Carrying value of investment | 16.7 | $ 16.7 | $ 5.6 | $ 5.6 |
Other Assets | OnDeck Australia | ||||
Significant Accounting Policies [Line Items] | ||||
Carrying value of investment | $ 1.4 | $ 1.4 | 1.8 | |
Other Assets | OnDeck Canada | ||||
Significant Accounting Policies [Line Items] | ||||
Carrying value of investment | $ 13.7 | $ 13.1 | ||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Days for delinquent loans to be charged off | 60 days | |||
Delinquent loans expiry period (in days) | 1 day | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Days for delinquent loans to be charged off | 65 days | |||
Delinquent loans expiry period (in days) | 64 days |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 144,090 | $ 165,477 | $ 394,353 | |
Restricted cash | 69,664 | 60,406 | 52,806 | |
Total cash, cash equivalents and restricted cash | $ 213,754 | $ 225,883 | $ 447,159 | $ 369,200 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 19, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 279,275 | $ 279,275 | $ 279,275 | |
Pangea Universal Holdings | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, value of common stock and cash provided in exchange | $ 32,900 | |||
Cash paid | 30,000 | |||
Loan forgiveness | 2,900 | |||
Purchase Consideration, Intangible assets | 19,800 | |||
Goodwill | $ 11,300 |
Loans and Finance Receivables -
Loans and Finance Receivables - Schedule of Revenue Generated from Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans and finance receivables revenue | [1] | $ 402,952 | $ 260,073 | $ 784,093 | $ 517,370 |
Other | 5,038 | 4,647 | 9,628 | 6,794 | |
Total revenue | 407,990 | 264,720 | 793,721 | 524,164 | |
Consumer Loans and Finance Receivables Revenue | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans and finance receivables revenue | 253,043 | 174,512 | 501,590 | 356,249 | |
Small Business Loans and Finance Receivables Revenue | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans and finance receivables revenue | $ 149,909 | $ 85,561 | $ 282,503 | $ 161,121 | |
[1] Included in “Revenue” in the consolidated statements of income. |
Loans and Finance Receivables_2
Loans and Finance Receivables - Components of Company-owned Loans and Finance Receivables At Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Principal balance - accrual | $ 2,149,938 | $ 1,767,628 | $ 1,303,728 | |||
Principal balance - non-accrual | 150,718 | 110,798 | 63,152 | |||
Total principal balance | 2,300,656 | 1,878,426 | 1,366,880 | |||
Loans and finance receivables at fair value - accrual | 2,423,729 | 1,936,638 | 1,389,914 | |||
Loans and finance receivables at fair value - non-accrual | 37,122 | 28,052 | 18,789 | |||
Loans and finance receivables at fair value | 2,460,851 | $ 2,231,884 | 1,964,690 | 1,408,703 | $ 1,230,711 | $ 1,241,506 |
Difference between principal balance and fair value | 160,195 | 86,264 | 41,823 | |||
Consumer | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Principal balance - accrual | 842,351 | 799,678 | 551,489 | |||
Principal balance - non-accrual | 94,250 | 68,073 | 33,598 | |||
Total principal balance | 936,601 | 867,751 | 585,087 | |||
Loans and finance receivables at fair value - accrual | 980,668 | 885,238 | 620,675 | |||
Loans and finance receivables at fair value - non-accrual | 8,460 | 4,906 | 3,300 | |||
Loans and finance receivables at fair value | 989,128 | 934,351 | 890,144 | 623,975 | 581,398 | 625,219 |
Difference between principal balance and fair value | 52,527 | 22,393 | 38,888 | |||
Small Business | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Principal balance - accrual | 1,307,587 | 967,950 | 752,239 | |||
Principal balance - non-accrual | 56,468 | 42,725 | 29,554 | |||
Total principal balance | 1,364,055 | 1,010,675 | 781,793 | |||
Loans and finance receivables at fair value - accrual | 1,443,061 | 1,051,400 | 769,239 | |||
Loans and finance receivables at fair value - non-accrual | 28,662 | 23,146 | 15,489 | |||
Loans and finance receivables at fair value | 1,471,723 | $ 1,297,533 | 1,074,546 | 784,728 | $ 649,313 | $ 616,287 |
Difference between principal balance and fair value | $ 107,668 | $ 63,871 | $ (2,935) |
Loans and Finance Receivables_3
Loans and Finance Receivables - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Accounts Notes And Loans Receivable [Line Items] | |||
Active consumer loans owned by third-party lenders | $ 14 | $ 13.8 | $ 9.7 |
Accrual for losses on consumer loan guaranty obligations | 17.9 | 18.8 | 10.8 |
Accrual for third party lender owned consumer loans, outstanding principal amount | 11.9 | 11.8 | 8.3 |
Financial Asset, Equal to or Greater than 90 Days Past Due | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Aggregate fair value of loans and finance receivables that are 90 days or more past due | 5.5 | 6.4 | 7.5 |
Aggregate fair value of loans and finance receivables in non-accrual status | 5.4 | 6.3 | 7.3 |
Aggregate unpaid principal balance for loans and finance receivables that are 90 days or more past due | $ 11.8 | $ 12.4 | $ 14.8 |
Loans and Finance Receivables_4
Loans and Finance Receivables - Schedule of Changes in Fair Value of Company-owned Loans and Finance Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance at beginning of period | $ 2,231,884 | $ 1,230,711 | $ 1,964,690 | $ 1,241,506 | |
Originations or acquisitions | 1,067,569 | 662,062 | 2,089,119 | 1,152,120 | |
Interest and fees | [1] | 402,952 | 260,073 | 784,093 | 517,370 |
Repayments | (1,098,839) | (739,507) | (2,120,147) | (1,475,794) | |
Charge-offs, net | [2] | (162,391) | (32,152) | (320,475) | (86,602) |
Net change in fair value | [2] | (20,549) | 27,522 | 63,004 | 60,894 |
Effect of foreign currency translation | (873) | (6) | 567 | (791) | |
Balance at end of period | 2,460,851 | 1,408,703 | 2,460,851 | 1,408,703 | |
Consumer | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance at beginning of period | 934,351 | 581,398 | 890,144 | 625,219 | |
Originations or acquisitions | 388,336 | 261,363 | 751,145 | 429,310 | |
Interest and fees | [1] | 253,043 | 174,512 | 501,590 | 356,249 |
Repayments | (452,651) | (344,256) | (904,473) | (711,331) | |
Charge-offs, net | [2] | (134,524) | (27,050) | (271,748) | (63,458) |
Net change in fair value | [2] | 1,446 | (22,657) | 21,903 | (12,322) |
Effect of foreign currency translation | (873) | 665 | 567 | 308 | |
Balance at end of period | 989,128 | 623,975 | 989,128 | 623,975 | |
Small Business | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance at beginning of period | 1,297,533 | 649,313 | 1,074,546 | 616,287 | |
Originations or acquisitions | 679,233 | 400,699 | 1,337,974 | 722,810 | |
Interest and fees | [1] | 149,909 | 85,561 | 282,503 | 161,121 |
Repayments | (646,188) | (395,251) | (1,215,674) | (764,463) | |
Charge-offs, net | [2] | (27,867) | (5,102) | (48,727) | (23,144) |
Net change in fair value | [2] | 19,103 | 50,179 | 41,101 | 73,216 |
Effect of foreign currency translation | (671) | (1,099) | |||
Balance at end of period | $ 1,471,723 | $ 784,728 | $ 1,471,723 | $ 784,728 | |
[1] Included in “Revenue” in the consolidated statements of income. Included in “Change in Fair Value” in the consolidated statements of income. |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding Including Maturity Date, Weighted Average Interest Rate and Borrowing Capacity (Detail) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 24, 2022 | Mar. 23, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | ||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 5.84% | 8.20% | ||||
Less: Long-term debt issuance costs | $ (6,353,000) | $ (7,608,000) | $ (9,001,000) | |||
Less: Debt discounts | (1,284,000) | (1,582,000) | (2,153,000) | |||
Total long-term debt | 1,840,665,000 | 1,384,399,000 | 1,028,488,000 | |||
2018-1 Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity | $ 200,000,000 | $ 150,000,000 | ||||
ODR 2022-1 Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, outstanding | $ 0 | |||||
Funding Debt | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | [1] | 3.42% | ||||
Borrowing capacity | $ 1,587,185,000 | |||||
Total debt, outstanding | $ 954,302,000 | 568,589,000 | 413,847,000 | |||
Funding Debt | 2018-1 Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | [2] | 2027-03 | ||||
Weighted average interest rate | [1] | 4.91% | ||||
Borrowing capacity | $ 200,000,000 | |||||
Total debt, outstanding | $ 150,000,000 | 72,706,000 | 25,628,000 | |||
Funding Debt | 2018-2 Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | [3] | 2025-07 | ||||
Weighted average interest rate | [1] | 5.30% | ||||
Borrowing capacity | $ 225,000,000 | |||||
Total debt, outstanding | $ 189,327,000 | 75,000,000 | 4,962,000 | |||
Funding Debt | 2018-A Securitization Notes | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 2026-05 | |||||
Total debt, outstanding | 628,000 | 8,107,000 | ||||
Funding Debt | 2019-A Securitization Notes | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 2026-06 | |||||
Weighted average interest rate | [1] | 7.62% | ||||
Borrowing capacity | $ 5,343,000 | |||||
Total debt, outstanding | $ 5,343,000 | 19,255,000 | 42,154,000 | |||
Funding Debt | ODR 2021-1 Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | [4] | 2024-11 | ||||
Weighted average interest rate | [1] | 1.18% | ||||
Borrowing capacity | $ 200,000,000 | |||||
Total debt, outstanding | $ 107,000,000 | |||||
Funding Debt | ODR 2022-1 Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | [5] | 2025-06 | ||||
Weighted average interest rate | [5] | 2.26% | ||||
Borrowing capacity | [5] | $ 420,000,000 | ||||
Funding Debt | RAOD Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | [6] | 2023-12 | ||||
Weighted average interest rate | [1] | 3.63% | ||||
Borrowing capacity | $ 236,842,000 | |||||
Total debt, outstanding | $ 202,632,000 | 101,000,000 | ||||
Funding Debt | ODAST III Securitization Notes | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | [7] | 2027-05 | ||||
Weighted average interest rate | [1] | 2.07% | ||||
Borrowing capacity | $ 300,000,000 | |||||
Total debt, outstanding | $ 300,000,000 | 300,000,000 | 300,000,000 | |||
Funding Debt | Other Funding Debt | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, outstanding | [8] | 32,996,000 | ||||
Corporate Debt | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | [1] | 7.60% | ||||
Borrowing capacity | $ 1,065,000,000 | |||||
Total corporate debt | $ 894,000,000 | 825,000,000 | 625,795,000 | |||
Corporate Debt | Revolving Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 2026-06 | |||||
Weighted average interest rate | [1] | 5.50% | ||||
Borrowing capacity | [9] | $ 440,000,000 | ||||
Revolving line of credit | $ 269,000,000 | 200,000,000 | ||||
Corporate Debt | 8.50% Senior Notes Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 2024-09 | |||||
Weighted average interest rate | [1] | 8.50% | ||||
Borrowing capacity | $ 250,000,000 | |||||
Senior Notes | $ 250,000,000 | 250,000,000 | 250,000,000 | |||
Corporate Debt | 8.50% Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 2025-09 | |||||
Weighted average interest rate | [1] | 8.50% | ||||
Borrowing capacity | $ 375,000,000 | |||||
Senior Notes | $ 375,000,000 | $ 375,000,000 | 375,000,000 | |||
Corporate Debt | Other corporate debt | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | 2022-04 | |||||
Total debt, outstanding | $ 795,000 | |||||
[1] The weighted average interest rate is determined based on the rates and principal balances on June 30, 2022 . It does not include the impact of the amortization of deferred loan origination costs or debt discounts. The period during which new borrowings may be made under this facility expires in March 2025. The period during which new borrowings may be made under this facility expires in July 2023. The period during which new borrowings may be made under this facility expires in November 2023. The period during which new borrowings may be made under this facility expires in June 2024. The period during which new borrowings may be made under this facility expires in December 2022. The period during which new borrowings may be made under this facility expires in April 2024. These debt facilities supported the Company’s operations in Australia and were denominated in Australian dollars. In December 2021, the Company sold a portion of its interest in OnDeck Australia and, as a result, deconsolidated it, including its long-term debt balances, from the Company's consolidated financial statements. The Company had outstanding letters of credit under the Revolving line of credit of $ 0.8 million, $ 0.5 million and $ 0.8 million as of June 30, 2022 and 2021 and December 31, 2021 , respectively. |
Long-term Debt - Summary of L_2
Long-term Debt - Summary of Long-Term Debt Instruments and Balances Outstanding Including Maturity Date, Weighted Average Interest Rate and Borrowing Capacity (Parenthetical) (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding amount | $ 0.8 | $ 0.8 | $ 0.5 | ||
8.50% Senior Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | ||
Debt instrument, maturity period | 2024 | 2024 | 2024 | ||
8.50% Senior Notes Due 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | ||
Debt instrument, maturity period | 2025 | 2025 | 2025 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | ||||||||||
Mar. 24, 2022 | Mar. 23, 2022 | Jun. 30, 2022 | Jun. 23, 2022 | Mar. 29, 2022 | Mar. 28, 2022 | Mar. 18, 2022 | Mar. 17, 2022 | Mar. 14, 2022 | Mar. 13, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||||||||||
Weighted average interest rates | 5.84% | 8.20% | |||||||||
2018-1 Securitization Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, revolving expiration date | Mar. 24, 2027 | Sep. 15, 2026 | |||||||||
Commitment amount | $ 200,000,000 | $ 150,000,000 | |||||||||
2018-2 Securitization Facility | Class A Revolving Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment amount | $ 200,000,000 | $ 133,300,000 | |||||||||
2018-2 Securitization Facility | Class B Revolving Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment amount | $ 25,000,000 | $ 16,700,000 | |||||||||
RAOD Securitization Facility | On Deck Capital Incorporation | Class A Revolving Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment amount | $ 200,000,000 | $ 150,000,000 | |||||||||
RAOD Securitization Facility | On Deck Capital Incorporation | Class B Revolving Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment amount | $ 36,800,000 | $ 27,600,000 | |||||||||
ODR 2021-1 Securitization Facility | On Deck Capital Incorporation | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment amount | $ 200,000,000 | $ 150,000,000 | |||||||||
ODR 2022-1 Securitization Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal outstanding | $ 0 | ||||||||||
ODR 2022-1 Securitization Facility | Class A Revolving Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Advance rate | 75% | ||||||||||
Commitment amount | $ 350,000,000 | ||||||||||
Debt instrument, borrowing rate | 1.75% | ||||||||||
ODR 2022-1 Securitization Facility | Class B Revolving Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Advance rate | 90% | ||||||||||
Commitment amount | $ 70,000,000 | ||||||||||
Debt instrument, borrowing rate | 7.50% | ||||||||||
Revolving Credit Facility Due 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, borrowing rate | 0.75% | ||||||||||
Letter of credit, sublimit | $ 20,000,000 | ||||||||||
Swingline loan, amount | 10,000,000 | ||||||||||
Credit agreement, maturity date | Jun. 30, 2026 | ||||||||||
Revolving Credit Facility Due 2026 | Secured Overnight Financing Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, borrowing rate | 3.50% | ||||||||||
Line of credit facility, advance rate | 75% | ||||||||||
Revolving Credit Facility Due 2026 | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Revolving line of credit | $ 440,000,000 | ||||||||||
Line of credit facility, advance rate | 0.50% | ||||||||||
Revolving Credit Facility Due 2026 | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, advance rate | 0.15% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Effective tax rate | 24.10% | 24.60% | |
Unrecognized tax benefits | $ 64.7 | $ 39.1 | $ 44.1 |
Unrecognized tax benefits that would affect the effective tax rate | $ 10.4 | ||
State Local And Foreign Jurisdiction Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Statute of limitation period | 3 years |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income attributable to Enova International, Inc. | $ 52,401 | $ 80,177 | $ 104,844 | $ 156,097 |
Denominator: | ||||
Total weighted average basic shares | 32,497 | 36,801 | 32,933 | 36,457 |
Shares applicable to stock-based compensation | 987 | 1,341 | 1,248 | 1,359 |
Total weighted average diluted shares | 33,484 | 38,142 | 34,181 | 37,816 |
Earnings per common share: | ||||
Earnings per common share - basic | $ 1.61 | $ 2.18 | $ 3.18 | $ 4.28 |
Earnings per common share - diluted | $ 1.56 | $ 2.10 | $ 3.07 | $ 4.13 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options not included in computation of diluted earnings per share | 325,560 | 20,945 | 275,489 | 20,945 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options not included in computation of diluted earnings per share | 486,073 | 34,601 | 385,980 | 57,324 |
Operating Segment Information -
Operating Segment Information - Additional Information (Detail) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segment | 1 | ||
Number of operating segment | 1 | ||
Property and equipment, net | $ | $ 88,648 | $ 78,402 | $ 80,430 |
Operating Segment Information_2
Operating Segment Information - Summary of Company's Revenue by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue [Abstract] | ||||
Revenue | $ 407,990 | $ 264,720 | $ 793,721 | $ 524,164 |
United States | ||||
Revenue [Abstract] | ||||
Revenue | 404,538 | 258,555 | 786,694 | 513,421 |
Other International Countries | ||||
Revenue [Abstract] | ||||
Revenue | $ 3,452 | $ 6,165 | $ 7,027 | $ 10,743 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Revenue | $ 407,990,000 | $ 264,720,000 | $ 793,721,000 | $ 524,164,000 | |
U.K. Business | |||||
Related Party Transaction [Line Items] | |||||
Agreement, Expiry date | July 8, 2022 | ||||
Revenue | 200,000 | 900,000 | $ 400,000 | 1,600,000 | |
Administrative fee due | 100,000 | 2,100,000 | 100,000 | 2,100,000 | $ 500,000 |
OnDeck Canada | |||||
Related Party Transaction [Line Items] | |||||
Due from affiliate balance | 0 | 1,200,000 | 0 | 1,200,000 | 1,200,000 |
Ondeck Australia | |||||
Related Party Transaction [Line Items] | |||||
Due from affiliate balance | 100,000 | 100,000 | |||
Linear | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliate balance | $ 800,000 | $ 800,000 | $ 2,900,000 | ||
Outstanding balance from affiliates | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Transfer of assets, amount | $ 0 | $ 0 | $ 0 | $ 0 | |
Transfer of liabilities, amount | 0 | 0 | $ 0 | 0 | |
Maximum | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalent maturity period | 90 days | ||||
Fair Value, Measurements, Recurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Liabilities fair value recurring | 0 | 0 | $ 0 | 0 | $ 0 |
Fair Value Measurements Nonrecurring | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Liabilities fair value recurring | 0 | 0 | 0 | 0 | 0 |
Assets fair value non-recurring | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Consumer loans and finance receivables | [1],[2] | $ 989,128 | $ 890,144 | $ 623,975 | ||
Small business loans and finance receivables | [1] | 1,471,723 | [2] | 1,074,546 | [2] | 784,728 |
Non-qualified savings plan assets | [3] | 5,567 | 5,561 | 5,156 | ||
Investment in trading security | [4] | 17,871 | 16,062 | 19,931 | ||
Total | 2,484,289 | 1,986,313 | 1,433,790 | |||
Level 1 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Non-qualified savings plan assets | [3] | 5,567 | 5,561 | 5,156 | ||
Investment in trading security | [4] | 17,871 | 16,062 | 19,931 | ||
Total | 23,438 | 21,623 | 25,087 | |||
Level 3 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Consumer loans and finance receivables | [1],[2] | 989,128 | 890,144 | 623,975 | ||
Small business loans and finance receivables | [1] | 1,471,723 | [2] | 1,074,546 | [2] | 784,728 |
Total | $ 2,460,851 | $ 1,964,690 | $ 1,408,703 | |||
[1] Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets. Consumer loans and finance receivables include $ 435.6 million , $ 163.6 million and $ 274.5 million in assets of consolidated VIEs as of June 30, 2022 and 2021 and December 31, 2021, respectively. Small business loans and finance receivables include $ 758.5 million , $ 369.6 million and $ 470.8 million in assets of consolidated VIEs as of June 30, 2022 and 2021 and December 31, 2021 , respectively. The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability of equal amount, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets. Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured on Recurring Basis (Parenthetical) (Detail) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Consumer loans and finance receivables | $ 435.6 | $ 274.5 | $ 163.6 |
Small business loans and finance receivables | $ 758.5 | $ 470.8 | $ 369.6 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Carrying Value | |||||
Financial assets: | |||||
Cash and cash equivalents | $ 144,090 | $ 165,477 | $ 394,353 | ||
Restricted cash | [1] | 69,664 | 60,406 | 52,806 | |
Investment in unconsolidated investee | [2] | 6,918 | 6,918 | 6,918 | |
Total | 220,672 | 232,801 | 454,077 | ||
Financial liabilities: | |||||
Revolving line of credit | 269,000 | 200,000 | |||
Securitization notes | 953,017 | 567,007 | 411,694 | ||
Other long-term debt | 795 | ||||
Total | 1,847,017 | 1,392,007 | 1,037,489 | ||
Carrying Value | 8.50% Senior Notes Due 2024 | |||||
Financial liabilities: | |||||
Senior notes | 250,000 | 250,000 | 250,000 | ||
Carrying Value | 8.50% Senior Notes Due 2025 | |||||
Financial liabilities: | |||||
Senior notes | 375,000 | 375,000 | 375,000 | ||
Level 1 | Estimated Fair Value | |||||
Financial assets: | |||||
Cash and cash equivalents | 144,090 | 165,477 | $ 394,353 | ||
Restricted cash | [1] | 69,664 | 60,406 | 52,806 | |
Total | 213,754 | 225,883 | 447,159 | ||
Level 2 | Estimated Fair Value | |||||
Financial liabilities: | |||||
Securitization notes | 932,700 | 567,903 | 416,251 | ||
Total | 1,491,306 | 1,208,944 | 1,059,176 | ||
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2024 | |||||
Financial liabilities: | |||||
Senior notes | 232,438 | 254,693 | 254,305 | ||
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2025 | |||||
Financial liabilities: | |||||
Senior notes | 326,168 | 386,348 | 388,620 | ||
Level 3 | Estimated Fair Value | |||||
Financial assets: | |||||
Investment in unconsolidated investee | [2] | 6,918 | 6,918 | 6,918 | |
Total | 6,918 | 6,918 | 6,918 | ||
Financial liabilities: | |||||
Revolving line of credit | 269,000 | 200,000 | |||
Other long-term debt | 795 | ||||
Total | $ 269,000 | $ 200,000 | $ 795 | ||
[1] Restricted cash includes $ 56.2 million , $ 42.8 million and $ 45.7 million in assets of consolidated VIEs as of June 30, 2022 and 2021 and December 31, 2021 , respectively. Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets. |
Fair Value Measurements - Fin_3
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Parenthetical) (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Variable Interest Entity, Primary Beneficiary | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Restricted cash | $ 56.2 | $ 42.8 | $ 45.7 |
8.50% Senior Notes Due 2024 | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% |
Debt instrument, maturity period | 2024 | 2024 | 2024 |
8.50% Senior Notes Due 2025 | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% |
Debt instrument, maturity period | 2025 | 2025 | 2025 |