Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
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, $.00001 par value per share | |
Trading Symbol | ENVA | |
Name of Exchange of which registered | NYSE | |
Entity Common Stock, Shares Outstanding | 30,787,347 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-35503 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3190813 | |
Entity Address, Address Line One | 175 West Jackson Blvd. | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60604 | |
City Area Code | 312 | |
Local Phone Number | 568-4200 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Assets | |||
Cash and cash equivalents | $ 100,042 | $ 100,165 | $ 144,090 |
Restricted cash | 161,619 | 78,235 | 69,664 |
Loans and finance receivables at fair value | 3,092,445 | 3,018,528 | 2,460,851 |
Income taxes receivable | 32,653 | 43,741 | 44,597 |
Other receivables and prepaid expenses | 57,758 | 66,267 | 58,859 |
Property and equipment, net | 99,073 | 93,228 | 88,648 |
Operating lease right-of-use assets | 16,488 | 19,347 | 21,301 |
Goodwill | 279,275 | 279,275 | 279,275 |
Intangible assets, net | 23,032 | 27,390 | 31,417 |
Other assets | 45,522 | 54,713 | 54,468 |
Total assets | 3,907,907 | 3,780,889 | 3,253,170 |
Liabilities and Stockholders’ Equity | |||
Accounts payable and accrued expenses | 229,315 | 198,320 | 169,530 |
Operating lease liabilities | 28,384 | 33,595 | 36,962 |
Deferred tax liabilities, net | 103,852 | 104,169 | 97,932 |
Long-term debt | 2,297,026 | 2,258,660 | 1,840,665 |
Total liabilities | 2,658,577 | 2,594,744 | 2,145,089 |
Commitments and contingencies (Note 8) | |||
Stockholders’ equity: | |||
Common stock, $0.00001 par value, 250,000,000 shares authorized, 44,917,916, 44,057,935 and 44,326,999 shares issued and 31,334,875, 32,830,838 and 31,220,928 outstanding as of March 31,2023 and 2022 and December 31, 2022 respectively | 0 | 0 | 0 |
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding | |||
Additional paid in capital | 266,058 | 251,878 | 239,187 |
Retained earnings | 1,412,253 | 1,313,185 | 1,210,605 |
Accumulated other comprehensive loss | (5,988) | (5,990) | (7,481) |
Treasury stock, at cost (13,583,041, 11,227,097 and 13,106,071 shares as of September 30, 2022 and 2021 and December 31, 2021, respectively) | (422,993) | (372,928) | (334,230) |
Total stockholders' equity | 1,249,330 | 1,186,145 | 1,108,081 |
Total liabilities and stockholders’ equity | $ 3,907,907 | $ 3,780,889 | $ 3,253,170 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
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 | 45,070,929 | 44,326,999 | 44,165,233 |
Common stock, shares outstanding | 30,869,886 | 31,220,928 | 32,183,324 |
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 | 14,201,043 | 13,106,071 | 11,981,909 |
CONSOLIDATED BALANCE SHEETS (Co
CONSOLIDATED BALANCE SHEETS (Consolidated VIEs) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Assets of consolidated VIEs, included in total assets above | |||
Cash and cash equivalents | $ 100,042 | $ 100,165 | $ 144,090 |
Restricted cash | 161,619 | 78,235 | 69,664 |
Loans and finance receivables at fair value | 3,092,445 | 3,018,528 | 2,460,851 |
Other receivables and prepaid expenses | 57,758 | 66,267 | 58,859 |
Other assets | 45,522 | 54,713 | 54,468 |
Total assets | 3,907,907 | 3,780,889 | 3,253,170 |
Liabilities of consolidated VIEs, included in total liabilities above | |||
Accounts payable and accrued expenses | 229,315 | 198,320 | 169,530 |
Long-term debt | 2,297,026 | 2,258,660 | 1,840,665 |
Total liabilities | 2,658,577 | 2,594,744 | 2,145,089 |
Variable Interest Entity, Primary Beneficiary | |||
Assets of consolidated VIEs, included in total assets above | |||
Cash and cash equivalents | 316 | 420 | 420 |
Restricted cash | 145,817 | 65,546 | 56,211 |
Loans and finance receivables at fair value | 1,983,133 | 1,699,698 | 1,194,166 |
Other receivables and prepaid expenses | 899 | 17,413 | 11,680 |
Other assets | 7,057 | 5,597 | 2,641 |
Total assets | 2,137,222 | 1,788,674 | 1,265,118 |
Liabilities of consolidated VIEs, included in total liabilities above | |||
Accounts payable and accrued expenses | 9,254 | 7,528 | 4,205 |
Long-term debt | 1,478,619 | 1,329,009 | 952,025 |
Total liabilities | $ 1,487,873 | $ 1,336,537 | $ 956,230 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 499,431 | $ 407,990 | $ 982,687 | $ 793,721 |
Change in Fair Value | (200,046) | (143,418) | (397,412) | (260,460) |
Net Revenue | 299,385 | 264,572 | 585,275 | 533,261 |
Operating Expenses | ||||
Marketing | 95,971 | 91,551 | 175,726 | 184,722 |
Operations and technology | 46,961 | 42,262 | 96,130 | 82,992 |
General and administrative | 36,228 | 33,690 | 73,386 | 68,218 |
Depreciation and amortization | 8,629 | 7,584 | 19,169 | 17,098 |
Total Operating Expenses | 187,789 | 175,087 | 364,411 | 353,030 |
Income from Operations | 111,596 | 89,485 | 220,864 | 180,231 |
Interest expense, net | (45,584) | (24,950) | (88,905) | (47,433) |
Foreign currency transaction gain (loss) | 0 | 21 | (171) | (293) |
Equity method investment (loss) income | (1,119) | 6,323 | (1,125) | 6,651 |
Other nonoperating expenses | (121) | (1,091) | (254) | (1,091) |
Income before Income Taxes | 64,772 | 69,788 | 130,409 | 138,065 |
Provision for income taxes | 16,627 | 17,387 | 31,341 | 33,221 |
Net income | $ 48,145 | $ 52,401 | $ 99,068 | $ 104,844 |
Earnings per common share: | ||||
Basic | $ 1.55 | $ 1.61 | $ 3.17 | $ 3.18 |
Diluted | $ 1.5 | $ 1.56 | $ 3.05 | $ 3.07 |
Weighted average common shares outstanding: | ||||
Basic | 31,084 | 32,497 | 31,212 | 32,933 |
Diluted | 32,203 | 33,484 | 32,456 | 34,181 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 48,145 | $ 52,401 | $ 99,068 | $ 104,844 | |
Other comprehensive gain (loss), net of tax: | |||||
Foreign currency translation gain (loss) | [1] | 1,349 | (2,570) | 2,309 | 897 |
Unrealized gain (loss) on investments, net of tax | 162 | (2,307) | 162 | ||
Total other comprehensive gain (loss), net of tax | 1,349 | (2,408) | 2 | 1,059 | |
Comprehensive Income | $ 49,494 | $ 49,993 | $ 99,070 | $ 105,903 | |
[1] Net of tax (provision) benefit of $ ( 426 ) and $ 843 for the three months ended June 30, 2023 and 2022, respectively, and $ ( 731 ) and $ ( 280 ) for the six months ended June 30, 2023 and 2022 , respectively . |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax (provision) benefit of foreign currency translation (loss) gain | $ 426 | $ 843 | $ 731 | $ 280 |
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 |
Balance at Dec. 31, 2021 | $ 1,093,052 | $ 225,689 | $ 1,105,761 | $ (8,540) | $ (229,858) | |
Balance, in shares at Dec. 31, 2021 | 43,424,000 | (9,280,000) | ||||
Stock-based compensation expense | 10,500 | 10,500 | ||||
Shares issued for vested RSUs, in shares | 604,000 | |||||
Shares issued for stock option exercises | 2,998 | 2,998 | ||||
Shares issued for stock option exercises, in shares | 137,000 | |||||
Net income | 104,844 | 104,844 | ||||
Unrealized gain (loss) on investments, net of tax | 162 | 162 | ||||
Foreign currency translation (loss) gain, net of tax | 897 | 897 | ||||
Purchases of treasury shares, at cost | (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) | |
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) | |
Balance, in shares at Mar. 31, 2022 | 44,058,000 | (11,227,000) | ||||
Stock-based compensation expense | 5,133 | 5,133 | ||||
Shares issued for vested RSUs, in shares | 80,000 | |||||
Shares issued for stock option exercises | 617 | 617 | ||||
Shares issued for stock option exercises, in shares | 27,000 | |||||
Net income | 52,401 | 52,401 | ||||
Unrealized gain (loss) on investments, net of tax | 162 | 162 | ||||
Foreign currency translation (loss) gain, net of tax | (2,569) | (2,569) | ||||
Purchases of treasury shares, at cost | (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) | |
Balance, in shares at Jun. 30, 2022 | 44,165,233 | 44,165,000 | (11,982,000) | |||
Balance at Dec. 31, 2022 | $ 1,186,145 | 251,878 | 1,313,185 | (5,990) | $ (372,928) | |
Balance, in shares at Dec. 31, 2022 | 44,326,999 | 44,327,000 | (13,106,000) | |||
Stock-based compensation expense | $ 12,205 | 12,205 | ||||
Shares issued for vested RSUs, in shares | 595,000 | |||||
Shares issued for stock option exercises | 1,975 | 1,975 | ||||
Shares issued for stock option exercises, in shares | 149,000 | |||||
Net income | 99,068 | 99,068 | ||||
Unrealized gain (loss) on investments, net of tax | (2,307) | (2,307) | ||||
Foreign currency translation (loss) gain, net of tax | 2,309 | 2,309 | ||||
Purchases of treasury shares, at cost | (50,065) | $ 50,065 | ||||
Purchases of treasury shares, at cost, in shares | 1,095,000 | |||||
Balance at Jun. 30, 2023 | $ 1,249,330 | 266,058 | 1,412,253 | (5,988) | $ (422,993) | |
Balance, in shares at Jun. 30, 2023 | 45,070,929 | 45,071,000 | (14,201,000) | |||
Balance at Mar. 31, 2023 | $ 1,220,753 | 258,806 | 1,364,108 | (7,337) | $ (394,824) | |
Balance, in shares at Mar. 31, 2023 | 44,918,000 | (13,583,000) | ||||
Stock-based compensation expense | 6,236 | 6,236 | ||||
Shares issued for vested RSUs, in shares | 85,000 | |||||
Shares issued for stock option exercises | 1,016 | 1,016 | ||||
Shares issued for stock option exercises, in shares | 68,000 | |||||
Net income | 48,145 | 48,145 | ||||
Foreign currency translation (loss) gain, net of tax | 1,349 | 1,349 | ||||
Purchases of treasury shares, at cost | (28,169) | $ 28,169 | ||||
Purchases of treasury shares, at cost, in shares | 618,000 | |||||
Balance at Jun. 30, 2023 | $ 1,249,330 | $ 266,058 | $ 1,412,253 | $ (5,988) | $ (422,993) | |
Balance, in shares at Jun. 30, 2023 | 45,070,929 | 45,071,000 | (14,201,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net income | $ 99,068 | $ 104,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,169 | 17,098 |
Amortization of deferred loan costs and debt discount | 4,182 | 2,528 |
Change in fair value of loans and finance receivables | 393,181 | 257,471 |
Stock-based compensation expense | 12,205 | 10,500 |
Loss on sale of subsidiary | 4,388 | |
Incomplete transaction costs | 710 | |
Loss on early extinguishment of debt | 271 | |
Operating leases, net | (2,352) | (2,225) |
Deferred income taxes, net | (1,047) | 10,726 |
Changes in operating assets and liabilities: | ||
Finance and service charges on loans and finance receivables | (1,873) | (11,299) |
Other receivables and prepaid expenses and other assets | 18,905 | (18,064) |
Accounts payable and accrued expenses | 5,522 | (11,539) |
Current income taxes | 34,108 | 27,036 |
Net cash provided by operating activities | 581,339 | 392,174 |
Cash Flows from Investing Activities | ||
Loans and finance receivables originated or acquired | (1,891,926) | (1,937,819) |
Loans and finance receivables repaid | 1,429,097 | 1,201,083 |
Capitalization of software development costs and purchases of fixed assets | (20,648) | (23,311) |
Sale of a subsidiary | 8,713 | |
Net cash used in investing activities | (483,477) | (751,334) |
Cash Flows from Financing Activities | ||
Borrowings under revolving line of credit | 117,000 | 99,000 |
Repayments under revolving line of credit | (160,000) | (30,000) |
Borrowings under securitization facilities | 514,821 | 408,926 |
Repayments under securitization facilities | (364,678) | (23,213) |
Repayments of senior notes | (69,461) | |
Debt issuance costs paid | (4,661) | (6,277) |
Proceeds from exercise of stock options | 1,975 | 2,998 |
Treasury shares purchased | (50,065) | (104,372) |
Net cash (used in) provided by financing activities | (15,069) | 347,062 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 468 | (31) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 83,261 | 12,129 |
Cash, cash equivalents and restricted cash at beginning of year | 178,400 | 225,883 |
Cash, cash equivalents and restricted cash at end of period | 261,661 | 213,754 |
Supplemental Disclosures | ||
Non-cash renewal of loans and finance receivables | $ 255,966 | $ 151,300 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
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”) operate 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 loan and finance receivable products that are primarily unsecured. 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, until recently, 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 in some markets 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 included herein have been prepared on the basis of accounting principles generally accepted in the United States (“GAAP”) and 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 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, 2023 and 2022 and for the three and six-month periods ended June 30, 2023 and 2022 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, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020 and related notes, which are included on Form 10-K filed with the SEC on February 24, 2023 . 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, 2023 2022 Cash and cash equivalents $ 100,042 $ 144,090 Restricted cash 161,619 69,664 Total cash, cash equivalents and restricted cash $ 261,661 $ 213,754 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. If a loan is renewed or refinanced, the renewal or refinanced loan is considered a new loan. The Company generally does not consider modifications that do not necessitate the customer to sign a new loan agreement to be new loans. 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 certain situations, the Company offers forbearance options, such as payment deferrals, on its loan products 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. For the consumer portfolio, 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 small business 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. 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 primarily includes interest income, statement and draw fees on line of credit accounts, fees for services provided through the Company’s CSO program (“CSO fees”), revenue on RPAs, origination fees, and other fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest income is generally recognized on an effective yield basis over the contractual term of the loan on installment loans or the estimated outstanding period of the draw on line of credit accounts. Statement fees on line of credit accounts are similar to interest charges and are generally recognized similarly to interest income. Draw fees on line of credit accounts are generally recognized at the time of draw. Revenue on RPAs is recognized over the projected delivery term of the agreement. CSO fees are recognized over the term of the loan. Origination fees are charged to customers on certain installment loan products and are recognized upon origination. 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. 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, 2023 and 2022 and December 31, 2022, the carrying value of the Company’s investment in Linear was $ 16.0 million, $ 16.7 million and $ 18.3 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. 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, 2023 and 2022 and December 31, 2022, the carrying value of the Company’s investment in OnDeck Australia was $ 0.0 million, $ 1.4 million and $ 1.1 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. |
Loans and Finance Receivables
Loans and Finance Receivables | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans and Finance Receivables | 2. Loans and Finance Receivables Revenue generated from the Company’s loans and finance receivables for the three and six months ended June 30, 2023 and 2022 was as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Consumer loans and finance receivables revenue $ 302,264 $ 253,043 $ 583,275 $ 501,590 Small business loans and finance receivables revenue 190,459 149,909 384,915 282,503 Total loans and finance receivables revenue 492,723 402,952 968,190 784,093 Other 6,708 5,038 14,497 9,628 Total revenue $ 499,431 $ 407,990 $ 982,687 $ 793,721 Loans and Finance Receivables at Fair Value The components of Company-owned loans and finance receivables at June 30, 2023 and 2022 and December 31, 2022 were as follows (dollars in thousands): As of June 30, 2023 Small Consumer Business Total Principal balance - accrual $ 889,545 $ 1,616,953 $ 2,506,498 Principal balance - non-accrual 93,843 156,601 250,444 Total principal balance 983,388 1,773,554 2,756,942 Accrued interest and fees 85,354 15,261 100,615 Loans and finance receivables at fair value - accrual 1,159,607 1,855,793 3,015,400 Loans and finance receivables at fair value - non-accrual 8,437 68,608 77,045 Loans and finance receivables at fair value $ 1,168,044 $ 1,924,401 $ 3,092,445 Difference between principal balance and fair value $ 184,656 $ 150,847 $ 335,503 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 Accrued interest and fees 68,246 8,612 76,858 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 December 31, 2022 Small Consumer Business Total Principal balance - accrual $ 857,682 $ 1,656,312 $ 2,513,994 Principal balance - non-accrual 108,071 117,099 225,170 Total principal balance 965,753 1,773,411 2,739,164 Accrued interest and fees 74,764 23,871 98,635 Loans and finance receivables at fair value - accrual 1,073,100 1,878,253 2,951,353 Loans and finance receivables at fair value - non-accrual 9,962 57,213 67,175 Loans and finance receivables at fair value $ 1,083,062 $ 1,935,466 $ 3,018,528 Difference between principal balance and fair value $ 117,309 $ 162,055 $ 279,364 As of June 30, 2023 and 2022 and December 31, 2022 , the aggregate fair value of loans and finance receivables that were 90 days or more past due was $ 17.4 million, $ 5.5 million and $ 8.2 million, respectively, of which, $ 17.0 million, $ 5.4 million and $ 8.0 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 $ 41.1 million, $ 11.8 million and $ 17.9 million, respectively. Changes in the fair value of Company-owned loans and finance receivables during the three and six months ended June 30, 2023 and 2022 were as follows (dollars in thousands): Three Months Ended June 30, 2023 Small Consumer Business Total Balance at beginning of period $ 1,062,867 $ 1,940,499 $ 3,003,366 Originations or acquisitions (1) 385,513 711,658 1,097,171 Interest and fees (2) 302,264 190,459 492,723 Repayments ( 467,443 ) ( 836,035 ) ( 1,303,478 ) Charge-offs, net (3) ( 131,198 ) ( 83,772 ) ( 214,970 ) Net change in fair value (3) 15,252 1,592 16,844 Effect of foreign currency translation 789 — 789 Balance at end of period $ 1,168,044 $ 1,924,401 $ 3,092,445 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 (1) 388,336 679,233 1,067,569 Interest and fees (2) 253,043 149,909 402,952 Repayments ( 452,651 ) ( 646,188 ) ( 1,098,839 ) Charge-offs, net (3) ( 134,524 ) ( 27,867 ) ( 162,391 ) Net change in fair value (3) 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 Six Months Ended June 30, 2023 Small Consumer Business Total Balance at beginning of period $ 1,083,062 $ 1,935,466 $ 3,018,528 Originations or acquisitions (1) 666,064 1,481,822 2,147,886 Interest and fees (2) 583,275 384,915 968,190 Repayments ( 934,976 ) ( 1,715,218 ) ( 2,650,194 ) Charge-offs, net (3) ( 287,470 ) ( 159,987 ) ( 447,457 ) Net change in fair value (3) 56,873 ( 2,597 ) 54,276 Effect of foreign currency translation 1,216 — 1,216 Balance at end of period $ 1,168,044 $ 1,924,401 $ 3,092,445 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 (1) 751,145 1,337,974 2,089,119 Interest and fees (2) 501,590 282,503 784,093 Repayments ( 904,473 ) ( 1,215,674 ) ( 2,120,147 ) Charge-offs, net (3) ( 271,748 ) ( 48,727 ) ( 320,475 ) Net change in fair value (3) 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 (1) Originations or acquisitions is presented on a cost basis . (2) Included in “Revenue” in the consolidated statements of income. (3) Included in “Change in Fair Value” in the consolidated statements of income. Guarantees of Consumer Loans In connection with its CSO program, the Company guarantees consumer loan payment obligations to an unrelated third-party lender 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, 2023 and 2022 and December 31, 2022, the consumer loans guaranteed by the Company had an estimated fair value of $ 19.1 million, $ 17.9 million and $ 16.3 million, respectively, and an outstanding principal balance of $ 14.2 million, $ 11.9 million and $ 12.9 million, respectively. As of June 30, 2023 and 2022 and December 31, 2022, the amount of consumer loans, including principal, fees and interest, guaranteed by the Company was $ 17.0 million, $ 14.0 million and $ 15.6 million, respectively. These loans are not included in the consolidated balance sheets as the Company does not own the loans prior to default. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 3. Leases The Company has operating leases primarily for its corporate headquarters, other offices located in the U.S. and certain equipment. The Company’s leases have remaining lease terms of less than one year to twelve years . Certain leases include options to extend the leases for up to five years, while others include options to terminate the leases within one year . The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. All other operating leases are recorded on the consolidated balance sheet with right-of-use assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The right-of-use assets represent the lease liability, plus any lease payments made at or before the commencement date, less any lease incentives received. If a lease does not provide an implicit rate, the Company uses its incremental secured borrowing rate, adjusted for the maturity date, based on information available at the commencement date in determining the present value of lease payments. Lease agreements with lease and non-lease components are accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in general and administrative expense. During the first quarter of 2023, the Company entered into the third amendment to the lease (the “Amendment”) for its headquarters in Chicago. The Amendment, among other changes, will result in the surrender of a portion of space currently leased by the Company, the addition of remaining space on a separate floor that is currently partially occupied by the Company, a change to the base rent schedule and an extension of the lease term from August 2027 to February 2035. As a result of the Amendment, the Company recognized an adjustment to decrease both its operating lease liability and operating lease right of use asset balances by $ 7.9 million and recognized a $ 1.7 million loss on the impairment of leasehold improvement assets related to the surrendered space that have no future utility. Lease expenses for the three and six months ended June 30, 2023 and 2022 were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Operating lease cost $ 1,145 $ 2,031 $ 2,714 $ 3,843 Variable lease cost 168 142 402 239 Short-term lease cost 274 40 525 84 Sublease income ( 57 ) ( 57 ) ( 113 ) ( 139 ) Total lease cost $ 1,530 $ 2,156 $ 3,528 $ 4,027 Future minimum lease payments as of June 30, 2023 are as follows (in thousands): Year Amount 2023 $ 2,531 2024 3,341 2025 3,401 2026 3,723 2027 4,988 Thereafter 28,254 Total lease payments $ 46,238 Less: interest 17,854 Present value of lease liabilities $ 28,384 The weighted average remaining lease term and discount rate as of June 30, 2023 and 2022 were as follows: June 30, December 31, 2023 2022 2022 Weighted average remaining lease term (years) Operating leases 8.7 4.8 4.5 Weighted average discount rate Operating leases 8.99 % 10.00 % 10.12 % Supplemental cash flow disclosures related to leases for the three and six months ended June 30, 2023 and 2022 were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,545 $ 2,702 $ 5,158 $ 5,564 Noncash transactions related to adjustments to lease liability and right-of-use asset Operating leases 3,178 — ( 2,969 ) — |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 4. Long-term debt The Company’s long-term debt instruments and balances outstanding as of June 30, 2023 and 2022 and December 31, 2022, including maturity date, weighted average interest rate and borrowing capacity as of June 30, 2023, were as follows (dollars in thousands): Weighted Outstanding average Borrowing June 30, December 31, Maturity date interest rate (1) capacity 2023 2022 2022 Funding Debt: 2018-1 Securitization Facility March 2027 (2) 9.29 % $ 200,000 $ 5,479 $ 150,000 $ 192,717 2018-2 Securitization Facility July 2025 (3) 9.39 % 225,000 116,039 189,327 179,654 2019-A Securitization Notes June 2026 — — — 5,343 — NCR 2022 Securitization Facility October 2026 (4) 9.84 % 125,000 33,215 — 43,958 ODR 2021-1 Securitization Facility November 2024 (5) 8.03 % 233,333 185,167 107,000 197,167 ODR 2022-1 Securitization Facility June 2025 (6) 7.99 % 420,000 280,774 — 187,000 RAOD Securitization Facility November 2025 (7) 7.96 % 230,263 212,263 202,632 230,263 HWCR 2023 Securitization Facility May 2026 (8) 9.49 % 287,214 221,000 — — ODAST III Securitization Notes May 2027 (9) 2.07 % 300,000 300,000 300,000 300,000 2023-A Securitization Notes December 2027 7.78 % 128,679 128,679 — — Total funding debt 7.15 % $ 2,149,489 $ 1,482,616 $ 954,302 $ 1,330,759 Corporate Debt: 8.50 % Senior Notes Due 2024 September 2024 8.50 % $ 180,390 $ 180,390 $ 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 8.66 % 440,000 (10) 266,000 269,000 309,000 Total corporate debt 8.55 % $ 995,390 $ 821,390 $ 894,000 $ 934,000 Less: Long-term debt issuance costs $ ( 5,052 ) $ ( 6,353 ) $ ( 5,112 ) Less: Debt discounts ( 1,928 ) ( 1,284 ) ( 987 ) Total long-term debt $ 2,297,026 $ 1,840,665 $ 2,258,660 (1) The weighted average interest rate is determined based on the rates and principal balances on June 30, 2023 . 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 October 2024. (5) The period during which new borrowings may be made under this facility expires in November 2023. (6) The period during which new borrowings may be made under this facility expires in June 2024. (7) The period during which new borrowings may be made under this facility expires in November 2024. (8) The period during which new borrowings may be made under this facility expires in May 2025. (9) The period during which new borrowings may be made under this facility expires in April 2024. (10) The Company had outstanding letters of credit under the Revolving line of credit of $ 0.8 million as of each of the periods ended June 30, 2023 and 2022 and December 31, 2022 . Weighted average interest rates on long-term debt were 8.00 % and 5.84 % during the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023 and 2022 and December 31, 2022, 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 HWCR 2023 Securitization Facility On May 25, 2023 (the “HWCR 2023 Closing Date”), the Company and several of its subsidiaries entered into a receivables securitization (the “HWCR 2023 Securitization Facility”) with lenders party thereto from time to time, BNP Paribas, as administrative agent and collateral agent, and Deutsche Bank Trust Company Americas, as paying agent. The HWCR 2023 Securitization Facility finances securitization receivables that have been and will be originated under the Company’s Headway Capital brand by a wholly-owned subsidiary and that meet specified eligibility criteria. Under the HWCR 2023 Securitization Facility, eligible securitization receivables are sold to a wholly-owned subsidiary of the Company (the “HWCR 2023 Debtor”) and serviced by another subsidiary of the Company. The HWCR 2023 Securitization Facility has Class A and Class B revolving commitments of $ 215.0 million and $ 72.2 million, respectively, which are required to be secured by eligible securitization receivables. The HWCR 2023 Securitization Facility is non-recourse to the Company and matures three years after the HWCR 2023 Closing Date. As of June 30, 2023, the total outstanding amount of the HWCR 2023 Securitization Facility was $ 221.0 million. The HWCR 2023 Securitization Facility is governed by a credit agreement, dated as of the HWCR 2023 Closing Date, among the HWCR 2023 Debtor, the administrative and collateral agent, the lenders, and the paying agent. The Class A revolving loans accrue interest at a rate per annum equal to the Commercial Paper rate plus 2.7 % with an advance rate of 65.5 %. The Class B revolving loans accrue interest at a rate per annum equal to Secured Overnight Financing Rate (“SOFR”) plus 8.50 % with an advance rate of 87.5 %. Interest payments on the HWCR 2023 Securitization Facility are made monthly. All amounts due under the HWCR 2023 Securitization Facility are secured by all of the HWCR 2023 Debtor’s assets, which include the eligible securitization receivables transferred to the HWCR 2023 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 HWCR 2023 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 HWCR 2023 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 HWCR 2023 Debtor. 2023-A Notes On March 3, 2023 (the “2023-A Closing Date”), the Company issued $ 170.0 million in aggregate principal notes (the “2023-A Notes”) through an indirect subsidiary, NetCredit Combined Receivables 2023, LLC (the “Issuer”). The 2023-A Notes were sold at a discount of the principal amount to yield 9.00 % to expected maturity (equivalent to 3.975 % spread above interpolated U.S. Treasuries) and are backed by a pool of unsecured consumer installment loans (“Securitization Receivables”). The 2023-A Notes represent obligations of the Issuer only and are not guaranteed by the Company. Under the 2023-A Notes, approximately $ 200.0 million of Securitization Receivables have been sold to a wholly-owned subsidiary of the Company and serviced by another subsidiary of the Company. The net proceeds of the offering of the 2023-A Notes on the 2023-A Closing Date were used to acquire the Securitization Receivables from certain subsidiaries of the Company, fund a reserve account and pay fees and expenses incurred in connection with the transaction. The 2023-A Notes were offered only to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act. 8.50% Senior Notes Due 2024 During the six months ended June 30, 2023, the Company repurchased $ 69.6 million principal amount of the 8.50 % Senior Notes Due 2024 for aggregate cash consideration of $ 69.5 million plus accrued interest. In connection with these purchases, the Company recorded a loss on extinguishment of debt of $ 0.3 million ($ 0.2 million, net of tax), which is included in “Other nonoperating expenses” in the consolidated statements of income. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s effective tax rate for the six months ended June 30, 2023 was 24.0 %, compared to 24.1 % for the six months ended June 30, 2022. The slight decrease is primarily attributable to larger excess tax benefits on stock compensation due to stock price appreciation coupled with a beneficial rate change on the measurement of the net deferred tax liability, partially offset by additional interest expense on unrecognized tax benefits. As of June 30, 2023, the balance of unrecognized tax benefits, inclusive of interest and penalties, was $ 110.7 million, which is included in “Accounts payable and accrued expenses” on the consolidated balance sheet, $ 13.6 million of which, if recognized, would favorably affect the effective tax rate in the period of recognition. The Company had $ 64.7 million and $ 87.7 million of unrecognized tax benefits as of June 30, 2022 and December 31, 2022 , respectively. Based on the expiration of the statute of limitations for certain jurisdictions, the Company believes it is reasonably possible that, within the next twelve months, unrecognized tax benefits could decrease by approximately $ 3.1 million. 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 2018. 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, 2023 | |
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, 2023 and 2022 (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Numerator: Net income $ 48,145 $ 52,401 $ 99,068 $ 104,844 Denominator: Total weighted average basic shares 31,084 32,497 31,212 32,933 Shares applicable to stock-based compensation 1,119 987 1,244 1,248 Total weighted average diluted shares 32,203 33,484 32,456 34,181 Earnings per common share: Earnings per common share – basic $ 1.55 $ 1.61 $ 3.17 $ 3.18 Earnings per common share – diluted $ 1.50 $ 1.56 $ 3.05 $ 3.07 For the three months ended June 30, 2023 and 2022 , 314,224 and 325,560 shares of common stock underlying stock options, respectively, and 590,064 and 486,073 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, 2023 and 2022 , 326,994 and 275,489 shares of common stock underlying stock options, respectively, and 468,129 and 385,980 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, 2023 | |
Segment Reporting [Abstract] | |
Operating Segment Information | 7. Operating Segment Information The Company provides online financial services to non-prime credit consumers and small businesses in the United States 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, 2023 and 2022 (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue United States $ 493,015 $ 404,538 $ 972,068 $ 786,694 Other international countries 6,416 3,452 10,619 7,027 Total revenue $ 499,431 $ 407,990 $ 982,687 $ 793,721 The Company’s long-lived assets, which consist of the Company’s property and equipment, were $ 99.1 million, $ 88.6 million and $ 93.2 million at June 30, 2023 and 2022 and December 31, 2022 , 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Consumer Financial Protection Bureau In May 2021, the Company received a Civil Investigative Demand (“CID”) from the Consumer Financial Protection Bureau (“CFPB”) concerning certain loan processing issues. The Company cooperated and provided requested data and information in response to the CID. In April 2022, we received a second CID requesting additional information, which we have also provided. Management expects ongoing interactions in this matter and is unable to estimate how long this investigation will continue, whether and in what manner any legal actions may commence, or what the ultimate outcome of this matter will be. If the CFPB were to pursue legal actions, it may seek monetary penalties, restitution, injunctive relief, or other damages. Management does not currently believe that the outcome of this matter will have a material adverse effect on the Company's business, financial condition, or results of operations. 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 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, 2023 | |
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 provided certain administrative, technical and other services in exchange for compensation by the Administrators. The agreement expired on July 8, 2022 and was not extended beyond that date. During the three months ended June 30, 2022, the Company recorded $ 0.2 million in revenue related to these services. As of June 30, 2022 , the Administrators owed the Company less than $ 0.1 million related to services provided. 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, 2023 and 2022 and December 31, 2022 , there was no outstanding balance between Linear and the Company. 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, 2023 and 2022 and December 31, 2022, the Company had a due from affiliate balance of $ 0.1 million, $ 0.1 million and $ 0.2 million, respectively, related to OnDeck Australia. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 , 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, 2023 and 2022 and December 31, 2022 are as follows (dollars in thousands): June 30, Fair Value Measurements Using 2023 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 1,168,044 $ — $ — $ 1,168,044 Small business loans and finance receivables (1)(2) 1,924,401 — — 1,924,401 Non-qualified savings plan assets (3) 7,505 7,505 — — Investment in trading security (4) 10,835 10,835 — — Total $ 3,110,785 $ 18,340 $ — $ 3,092,445 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 December 31, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 1,083,062 $ — $ — $ 1,083,062 Small business loans and finance receivables (1)(2) 1,935,466 — — 1,935,466 Non-qualified savings plan assets (3) 5,884 5,884 — — Investment in trading security (4) 17,406 17,406 — — Total $ 3,041,818 $ 23,290 $ — $ 3,018,528 (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 $ 695.1 million , $ 435.6 million and $ 528.8 million in assets of consolidated VIEs as of June 30, 2023 and 2022 and December 31, 2022, respectively. Small business loans and finance receivables include $ 1,288.0 million , $ 758.5 million and $ 1,170.9 million in assets of consolidated VIEs as of June 30, 2023 and 2022 and December 31, 2022 , 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, 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, 2023 and 2022 and December 31, 2022. 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, 2023 and 2022 and December 31, 2022 , 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, 2023 and 2022 and December 31, 2022 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 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 100,042 $ 100,042 $ — $ — Restricted cash (1) 161,619 161,619 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 268,579 $ 261,661 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 266,000 $ — $ — $ 266,000 Securitization notes 1,480,688 — 1,463,685 — 8.50 % senior notes due 2024 180,390 — 205,390 — 8.50 % senior notes due 2025 375,000 — 365,021 — Total $ 2,302,078 $ — $ 2,034,096 $ 266,000 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 December 31, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 100,165 $ 100,165 $ — $ — Restricted cash (1) 78,235 78,235 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 185,318 $ 178,400 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 309,000 $ — $ — $ 309,000 Securitization notes 1,329,772 — 1,304,702 — 8.50 % senior notes due 2024 250,000 — 237,185 — 8.50 % senior notes due 2025 375,000 — 346,523 — Total $ 2,263,772 $ — $ 1,888,410 $ 309,000 (1) Restricted cash includes $ 145.8 million , $ 56.2 million and $ 65.5 million in assets of consolidated VIEs as of June 30, 2023 and 2022 and December 31, 2022 , 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, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events Subsequent events have been reviewed through the date these financial statements were issued. On July 27, 2023, OnDeck Asset Securitization IV, LLC (“ODAS IV”), a wholly-owned indirect subsidiary of the Company, issued $ 227.1 million in initial principal amount of Series 2023-1 Fixed Rate Asset-Backed Notes (the "ODAS IV Securitization Notes”) in a private securitization transaction. The ODAS IV Securitization Notes have a legal final payment date in August 2030 and were issued in three classes with initial principal amounts and fixed interest rates (per annum) as follows: Class A notes of $ 143.8 million at 7.00 %, Class B notes of $ 56.3 million at 8.25 %, and Class C notes of $ 27.0 million at 9.93 %. Collateral for the ODAS IV Securitization Notes consists of, among other things, a revolving pool of small business loans originated or purchased by ODK Capital, LLC ( “ODK”), which is a wholly-owned indirect subsidiary of the Company. ODAS IV will use the net proceeds of the proposed private offering to purchase small business loans from ODK that will be pledged as collateral for the ODAS IV Securitization Notes and fund a reserve account. ODK is the servicer of the loans securing the ODAS IV Securitization Notes. ODAS IV is the sole obligor of the ODAS IV Securitization Notes, which are not obligations of, or guaranteed by, the Company or ODK. The Company will use the proceeds it receives from ODAS IV for general corporate purposes. The ODAS IV Securitization Notes were offered to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company included herein have been prepared on the basis of accounting principles generally accepted in the United States (“GAAP”) and 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 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, 2023 and 2022 and for the three and six-month periods ended June 30, 2023 and 2022 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, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020 and related notes, which are included on Form 10-K filed with the SEC on February 24, 2023 . |
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, 2023 2022 Cash and cash equivalents $ 100,042 $ 144,090 Restricted cash 161,619 69,664 Total cash, cash equivalents and restricted cash $ 261,661 $ 213,754 |
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. If a loan is renewed or refinanced, the renewal or refinanced loan is considered a new loan. The Company generally does not consider modifications that do not necessitate the customer to sign a new loan agreement to be new loans. |
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 certain situations, the Company offers forbearance options, such as payment deferrals, on its loan products 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. For the consumer portfolio, 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 small business 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. 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 primarily includes interest income, statement and draw fees on line of credit accounts, fees for services provided through the Company’s CSO program (“CSO fees”), revenue on RPAs, origination fees, and other fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest income is generally recognized on an effective yield basis over the contractual term of the loan on installment loans or the estimated outstanding period of the draw on line of credit accounts. Statement fees on line of credit accounts are similar to interest charges and are generally recognized similarly to interest income. Draw fees on line of credit accounts are generally recognized at the time of draw. Revenue on RPAs is recognized over the projected delivery term of the agreement. CSO fees are recognized over the term of the loan. Origination fees are charged to customers on certain installment loan products and are recognized upon origination. |
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. 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, 2023 and 2022 and December 31, 2022, the carrying value of the Company’s investment in Linear was $ 16.0 million, $ 16.7 million and $ 18.3 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. 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, 2023 and 2022 and December 31, 2022, the carrying value of the Company’s investment in OnDeck Australia was $ 0.0 million, $ 1.4 million and $ 1.1 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, 2023 | |
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, 2023 2022 Cash and cash equivalents $ 100,042 $ 144,090 Restricted cash 161,619 69,664 Total cash, cash equivalents and restricted cash $ 261,661 $ 213,754 |
Loans and Finance Receivables (
Loans and Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 was as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Consumer loans and finance receivables revenue $ 302,264 $ 253,043 $ 583,275 $ 501,590 Small business loans and finance receivables revenue 190,459 149,909 384,915 282,503 Total loans and finance receivables revenue 492,723 402,952 968,190 784,093 Other 6,708 5,038 14,497 9,628 Total revenue $ 499,431 $ 407,990 $ 982,687 $ 793,721 |
Components of Company-owned Loans and Finance Receivables at Fair Value | The components of Company-owned loans and finance receivables at June 30, 2023 and 2022 and December 31, 2022 were as follows (dollars in thousands): As of June 30, 2023 Small Consumer Business Total Principal balance - accrual $ 889,545 $ 1,616,953 $ 2,506,498 Principal balance - non-accrual 93,843 156,601 250,444 Total principal balance 983,388 1,773,554 2,756,942 Accrued interest and fees 85,354 15,261 100,615 Loans and finance receivables at fair value - accrual 1,159,607 1,855,793 3,015,400 Loans and finance receivables at fair value - non-accrual 8,437 68,608 77,045 Loans and finance receivables at fair value $ 1,168,044 $ 1,924,401 $ 3,092,445 Difference between principal balance and fair value $ 184,656 $ 150,847 $ 335,503 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 Accrued interest and fees 68,246 8,612 76,858 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 December 31, 2022 Small Consumer Business Total Principal balance - accrual $ 857,682 $ 1,656,312 $ 2,513,994 Principal balance - non-accrual 108,071 117,099 225,170 Total principal balance 965,753 1,773,411 2,739,164 Accrued interest and fees 74,764 23,871 98,635 Loans and finance receivables at fair value - accrual 1,073,100 1,878,253 2,951,353 Loans and finance receivables at fair value - non-accrual 9,962 57,213 67,175 Loans and finance receivables at fair value $ 1,083,062 $ 1,935,466 $ 3,018,528 Difference between principal balance and fair value $ 117,309 $ 162,055 $ 279,364 |
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, 2023 and 2022 were as follows (dollars in thousands): Three Months Ended June 30, 2023 Small Consumer Business Total Balance at beginning of period $ 1,062,867 $ 1,940,499 $ 3,003,366 Originations or acquisitions (1) 385,513 711,658 1,097,171 Interest and fees (2) 302,264 190,459 492,723 Repayments ( 467,443 ) ( 836,035 ) ( 1,303,478 ) Charge-offs, net (3) ( 131,198 ) ( 83,772 ) ( 214,970 ) Net change in fair value (3) 15,252 1,592 16,844 Effect of foreign currency translation 789 — 789 Balance at end of period $ 1,168,044 $ 1,924,401 $ 3,092,445 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 (1) 388,336 679,233 1,067,569 Interest and fees (2) 253,043 149,909 402,952 Repayments ( 452,651 ) ( 646,188 ) ( 1,098,839 ) Charge-offs, net (3) ( 134,524 ) ( 27,867 ) ( 162,391 ) Net change in fair value (3) 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 Six Months Ended June 30, 2023 Small Consumer Business Total Balance at beginning of period $ 1,083,062 $ 1,935,466 $ 3,018,528 Originations or acquisitions (1) 666,064 1,481,822 2,147,886 Interest and fees (2) 583,275 384,915 968,190 Repayments ( 934,976 ) ( 1,715,218 ) ( 2,650,194 ) Charge-offs, net (3) ( 287,470 ) ( 159,987 ) ( 447,457 ) Net change in fair value (3) 56,873 ( 2,597 ) 54,276 Effect of foreign currency translation 1,216 — 1,216 Balance at end of period $ 1,168,044 $ 1,924,401 $ 3,092,445 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 (1) 751,145 1,337,974 2,089,119 Interest and fees (2) 501,590 282,503 784,093 Repayments ( 904,473 ) ( 1,215,674 ) ( 2,120,147 ) Charge-offs, net (3) ( 271,748 ) ( 48,727 ) ( 320,475 ) Net change in fair value (3) 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 (1) Originations or acquisitions is presented on a cost basis . (2) Included in “Revenue” in the consolidated statements of income. (3) Included in “Change in Fair Value” in the consolidated statements of income. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease Expenses | Lease expenses for the three and six months ended June 30, 2023 and 2022 were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Operating lease cost $ 1,145 $ 2,031 $ 2,714 $ 3,843 Variable lease cost 168 142 402 239 Short-term lease cost 274 40 525 84 Sublease income ( 57 ) ( 57 ) ( 113 ) ( 139 ) Total lease cost $ 1,530 $ 2,156 $ 3,528 $ 4,027 |
Future Minimum Lease Payments | Future minimum lease payments as of June 30, 2023 are as follows (in thousands): Year Amount 2023 $ 2,531 2024 3,341 2025 3,401 2026 3,723 2027 4,988 Thereafter 28,254 Total lease payments $ 46,238 Less: interest 17,854 Present value of lease liabilities $ 28,384 |
Weighted Average Remaining Lease Term and Discount Rate | The weighted average remaining lease term and discount rate as of June 30, 2023 and 2022 were as follows: June 30, December 31, 2023 2022 2022 Weighted average remaining lease term (years) Operating leases 8.7 4.8 4.5 Weighted average discount rate Operating leases 8.99 % 10.00 % 10.12 % |
Supplemental Cash Flow Disclosures Related to Leases | Supplemental cash flow disclosures related to leases for the three and six months ended June 30, 2023 and 2022 were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,545 $ 2,702 $ 5,158 $ 5,564 Noncash transactions related to adjustments to lease liability and right-of-use asset Operating leases 3,178 — ( 2,969 ) — |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 and December 31, 2022, including maturity date, weighted average interest rate and borrowing capacity as of June 30, 2023, were as follows (dollars in thousands): Weighted Outstanding average Borrowing June 30, December 31, Maturity date interest rate (1) capacity 2023 2022 2022 Funding Debt: 2018-1 Securitization Facility March 2027 (2) 9.29 % $ 200,000 $ 5,479 $ 150,000 $ 192,717 2018-2 Securitization Facility July 2025 (3) 9.39 % 225,000 116,039 189,327 179,654 2019-A Securitization Notes June 2026 — — — 5,343 — NCR 2022 Securitization Facility October 2026 (4) 9.84 % 125,000 33,215 — 43,958 ODR 2021-1 Securitization Facility November 2024 (5) 8.03 % 233,333 185,167 107,000 197,167 ODR 2022-1 Securitization Facility June 2025 (6) 7.99 % 420,000 280,774 — 187,000 RAOD Securitization Facility November 2025 (7) 7.96 % 230,263 212,263 202,632 230,263 HWCR 2023 Securitization Facility May 2026 (8) 9.49 % 287,214 221,000 — — ODAST III Securitization Notes May 2027 (9) 2.07 % 300,000 300,000 300,000 300,000 2023-A Securitization Notes December 2027 7.78 % 128,679 128,679 — — Total funding debt 7.15 % $ 2,149,489 $ 1,482,616 $ 954,302 $ 1,330,759 Corporate Debt: 8.50 % Senior Notes Due 2024 September 2024 8.50 % $ 180,390 $ 180,390 $ 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 8.66 % 440,000 (10) 266,000 269,000 309,000 Total corporate debt 8.55 % $ 995,390 $ 821,390 $ 894,000 $ 934,000 Less: Long-term debt issuance costs $ ( 5,052 ) $ ( 6,353 ) $ ( 5,112 ) Less: Debt discounts ( 1,928 ) ( 1,284 ) ( 987 ) Total long-term debt $ 2,297,026 $ 1,840,665 $ 2,258,660 (1) The weighted average interest rate is determined based on the rates and principal balances on June 30, 2023 . 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 October 2024. (5) The period during which new borrowings may be made under this facility expires in November 2023. (6) The period during which new borrowings may be made under this facility expires in June 2024. (7) The period during which new borrowings may be made under this facility expires in November 2024. (8) The period during which new borrowings may be made under this facility expires in May 2025. (9) The period during which new borrowings may be made under this facility expires in April 2024. (10) The Company had outstanding letters of credit under the Revolving line of credit of $ 0.8 million as of each of the periods ended June 30, 2023 and 2022 and December 31, 2022 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Numerator: Net income $ 48,145 $ 52,401 $ 99,068 $ 104,844 Denominator: Total weighted average basic shares 31,084 32,497 31,212 32,933 Shares applicable to stock-based compensation 1,119 987 1,244 1,248 Total weighted average diluted shares 32,203 33,484 32,456 34,181 Earnings per common share: Earnings per common share – basic $ 1.55 $ 1.61 $ 3.17 $ 3.18 Earnings per common share – diluted $ 1.50 $ 1.56 $ 3.05 $ 3.07 |
Operating Segment Information (
Operating Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue United States $ 493,015 $ 404,538 $ 972,068 $ 786,694 Other international countries 6,416 3,452 10,619 7,027 Total revenue $ 499,431 $ 407,990 $ 982,687 $ 793,721 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 and December 31, 2022 are as follows (dollars in thousands): June 30, Fair Value Measurements Using 2023 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 1,168,044 $ — $ — $ 1,168,044 Small business loans and finance receivables (1)(2) 1,924,401 — — 1,924,401 Non-qualified savings plan assets (3) 7,505 7,505 — — Investment in trading security (4) 10,835 10,835 — — Total $ 3,110,785 $ 18,340 $ — $ 3,092,445 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 December 31, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial assets: Consumer loans and finance receivables (1)(2) $ 1,083,062 $ — $ — $ 1,083,062 Small business loans and finance receivables (1)(2) 1,935,466 — — 1,935,466 Non-qualified savings plan assets (3) 5,884 5,884 — — Investment in trading security (4) 17,406 17,406 — — Total $ 3,041,818 $ 23,290 $ — $ 3,018,528 (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 $ 695.1 million , $ 435.6 million and $ 528.8 million in assets of consolidated VIEs as of June 30, 2023 and 2022 and December 31, 2022, respectively. Small business loans and finance receivables include $ 1,288.0 million , $ 758.5 million and $ 1,170.9 million in assets of consolidated VIEs as of June 30, 2023 and 2022 and December 31, 2022 , 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, 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, 2023 and 2022 and December 31, 2022 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 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 100,042 $ 100,042 $ — $ — Restricted cash (1) 161,619 161,619 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 268,579 $ 261,661 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 266,000 $ — $ — $ 266,000 Securitization notes 1,480,688 — 1,463,685 — 8.50 % senior notes due 2024 180,390 — 205,390 — 8.50 % senior notes due 2025 375,000 — 365,021 — Total $ 2,302,078 $ — $ 2,034,096 $ 266,000 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 December 31, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 100,165 $ 100,165 $ — $ — Restricted cash (1) 78,235 78,235 — — Investment in unconsolidated investee (2) 6,918 — — 6,918 Total $ 185,318 $ 178,400 $ — $ 6,918 Financial liabilities: Revolving line of credit $ 309,000 $ — $ — $ 309,000 Securitization notes 1,329,772 — 1,304,702 — 8.50 % senior notes due 2024 250,000 — 237,185 — 8.50 % senior notes due 2025 375,000 — 346,523 — Total $ 2,263,772 $ — $ 1,888,410 $ 309,000 (1) Restricted cash includes $ 145.8 million , $ 56.2 million and $ 65.5 million in assets of consolidated VIEs as of June 30, 2023 and 2022 and December 31, 2022 , 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, 2023 | Dec. 31, 2022 | |
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% | ||
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 | $ 18.3 |
Other Assets | OnDeck Australia | |||
Significant Accounting Policies [Line Items] | |||
Carrying value of investment | $ 1.4 | $ 0 | $ 1.1 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Days for delinquent loans to be charged off | 60 days | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Days for delinquent loans to be charged off | 65 days |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 100,042 | $ 100,165 | $ 144,090 | |
Restricted cash | 161,619 | 78,235 | 69,664 | |
Total cash, cash equivalents and restricted cash | $ 261,661 | $ 178,400 | $ 213,754 | $ 225,883 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 279,275 | $ 279,275 | $ 279,275 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Consumer loans and finance receivables revenue | [1] | $ 492,723 | $ 402,952 | $ 968,190 | $ 784,093 |
Total loans and finance receivables revenue | 492,723 | 402,952 | 968,190 | 784,093 | |
Other | 6,708 | 5,038 | 14,497 | 9,628 | |
Total revenue | 499,431 | 407,990 | 982,687 | 793,721 | |
Consumer Loans and Finance Receivables Revenue | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Consumer loans and finance receivables revenue | 302,264 | 253,043 | 583,275 | 501,590 | |
Small Business Loans and Finance Receivables Revenue | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Small business loans and finance receivables revenue | $ 190,459 | $ 149,909 | $ 384,915 | $ 282,503 | |
[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, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Principal balance - accrual | $ 2,506,498 | $ 2,513,994 | $ 2,149,938 | |||
Principal balance - non-accrual | 250,444 | 225,170 | 150,718 | |||
Total principal balance | 2,756,942 | 2,739,164 | 2,300,656 | |||
Accrued interest and fees | 100,615 | 98,635 | 76,858 | |||
Loans and finance receivables at fair value - accrual | 3,015,400 | 2,951,353 | 2,423,729 | |||
Loans and finance receivables at fair value - non-accrual | 77,045 | 67,175 | 37,122 | |||
Loans and finance receivables at fair value | 3,092,445 | $ 3,003,366 | 3,018,528 | 2,460,851 | $ 2,231,884 | $ 1,964,690 |
Difference between principal balance and fair value | 335,503 | 279,364 | 160,195 | |||
Consumer | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Principal balance - accrual | 889,545 | 857,682 | 842,351 | |||
Principal balance - non-accrual | 93,843 | 108,071 | 94,250 | |||
Total principal balance | 983,388 | 965,753 | 936,601 | |||
Accrued interest and fees | 85,354 | 74,764 | 68,246 | |||
Loans and finance receivables at fair value - accrual | 1,159,607 | 1,073,100 | 980,668 | |||
Loans and finance receivables at fair value - non-accrual | 8,437 | 9,962 | 8,460 | |||
Loans and finance receivables at fair value | 1,168,044 | 1,062,867 | 1,083,062 | 989,128 | 934,351 | 890,144 |
Difference between principal balance and fair value | 184,656 | 117,309 | 52,527 | |||
Small Business | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Principal balance - accrual | 1,616,953 | 1,656,312 | 1,307,587 | |||
Principal balance - non-accrual | 156,601 | 117,099 | 56,468 | |||
Total principal balance | 1,773,554 | 1,773,411 | 1,364,055 | |||
Accrued interest and fees | 15,261 | 23,871 | 8,612 | |||
Loans and finance receivables at fair value - accrual | 1,855,793 | 1,878,253 | 1,443,061 | |||
Loans and finance receivables at fair value - non-accrual | 68,608 | 57,213 | 28,662 | |||
Loans and finance receivables at fair value | 1,924,401 | $ 1,940,499 | 1,935,466 | 1,471,723 | $ 1,297,533 | $ 1,074,546 |
Difference between principal balance and fair value | $ 150,847 | $ 162,055 | $ (107,668) |
Loans and Finance Receivables_3
Loans and Finance Receivables - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Accounts Notes And Loans Receivable [Line Items] | |||
Active consumer loans owned by third-party lenders | $ 17 | $ 15.6 | $ 14 |
Accrual for losses on consumer loan guaranty obligations | 19.1 | 16.3 | 17.9 |
Accrual for third party lender owned consumer loans, outstanding principal amount | 14.2 | 12.9 | 11.9 |
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 | 17.4 | 8.2 | 5.5 |
Aggregate fair value of loans and finance receivables in non-accrual status | 17 | 8 | 5.4 |
Aggregate unpaid principal balance for loans and finance receivables that are 90 days or more past due | $ 41.1 | $ 17.9 | $ 11.8 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance at beginning of period | $ 3,003,366 | $ 2,231,884 | $ 3,018,528 | $ 1,964,690 | |
Originations or acquisitions | [1] | 1,097,171 | 1,067,569 | 2,147,886 | 2,089,119 |
Interest and fees | [2] | 492,723 | 402,952 | 968,190 | 784,093 |
Repayments | (1,303,478) | (1,098,839) | 2,650,194 | 2,120,147 | |
Charge-offs, net | [3] | (214,970) | (162,391) | 447,457 | 320,475 |
Net change in fair value | [3] | 16,844 | (20,549) | 54,276 | 63,004 |
Effect of foreign currency translation | 789 | (873) | 1,216 | 567 | |
Balance at end of period | 3,092,445 | 2,460,851 | 3,092,445 | 2,460,851 | |
Consumer | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance at beginning of period | 1,062,867 | 934,351 | 1,083,062 | 890,144 | |
Originations or acquisitions | [1] | 385,513 | 388,336 | 666,064 | 751,145 |
Interest and fees | [2] | 302,264 | 253,043 | 583,275 | 501,590 |
Repayments | (467,443) | (452,651) | 934,976 | 904,473 | |
Charge-offs, net | [3] | (131,198) | (134,524) | 287,470 | 271,748 |
Net change in fair value | [3] | 15,252 | (1,446) | 56,873 | 21,903 |
Effect of foreign currency translation | 789 | (873) | 1,216 | 567 | |
Balance at end of period | 1,168,044 | 989,128 | 1,168,044 | 989,128 | |
Small Business | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Balance at beginning of period | 1,940,499 | 1,297,533 | 1,935,466 | 1,074,546 | |
Originations or acquisitions | [1] | 711,658 | 679,233 | 1,481,822 | 1,337,974 |
Interest and fees | [2] | 190,459 | 149,909 | 384,915 | 282,503 |
Repayments | (836,035) | (646,188) | 1,715,218 | 1,215,674 | |
Charge-offs, net | [3] | (83,772) | (27,867) | 159,987 | 48,727 |
Net change in fair value | [3] | 1,592 | 19,103 | (2,597) | 41,101 |
Balance at end of period | $ 1,924,401 | $ 1,471,723 | $ 1,924,401 | $ 1,471,723 | |
[1] Originations or acquisitions is presented on a cost basis Included in “Revenue” in the consolidated statements of income. Included in “Change in Fair Value” in the consolidated statements of income. |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Option to extend, existence, operating lease | true | |||
Option to extend, description, operating lease | Certain leases include options to extend the leases for up to five years, while others include options to terminate the leases within one year. | |||
Option to terminate, existence, operating lease | true | |||
Option to terminate, description, operating lease | while others include options to terminate the leases within one year. | |||
Operating lease liability | $ 28,384 | $ 33,595 | $ 36,962 | |
Operating lease right-of-use assets | $ 16,488 | $ 19,347 | $ 21,301 | |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating leases, remaining lease term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating leases, remaining lease term | 12 years | |||
Option to terminate, operating lease, term | 1 year | |||
Chicago | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease liability | $ 7,900 | |||
Operating lease right-of-use assets | 7,900 | |||
Imparment loss on leasehold | $ 1,700 |
Leases - Lease Expenses (Detail
Leases - Lease Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,145 | $ 2,031 | $ 2,714 | $ 3,843 |
Variable lease cost | 168 | 142 | 402 | 239 |
Short-term lease cost | 274 | 40 | 525 | 84 |
Sublease income | (57) | (57) | (113) | (139) |
Total lease cost | $ 1,530 | $ 2,156 | $ 3,528 | $ 4,027 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Leases [Abstract] | |||
2023 | $ 2,531 | ||
2024 | 3,341 | ||
2025 | 3,401 | ||
2026 | 3,723 | ||
2027 | 4,988 | ||
Thereafter | 28,254 | ||
Total lease payments | 46,238 | ||
Less: interest | 17,854 | ||
Present value of lease liabilities | $ 28,384 | $ 33,595 | $ 36,962 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Detail) | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Weighted average remaining lease term (years) | |||
Operating leases | 8 years 8 months 12 days | 4 years 6 months | 4 years 9 months 18 days |
Weighted average discount rate | |||
Operating leases | 8.99% | 10.12% | 10% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Disclosures Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating cash flows from operating leases | $ 2,545 | $ 2,702 | $ 5,158 | $ 5,564 |
Noncash transactions related to adjustments to lease liabilty and right-of-use asset | ||||
Operating leases | $ 3,178 | $ (2,969) |
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 ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | ||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 8% | 5.84% | |||
Less: Long-term debt issuance costs | $ (5,052,000) | $ (5,112,000) | $ (6,353,000) | ||
Less: Debt discounts | (1,928,000) | (987,000) | (1,284,000) | ||
Total long-term debt | $ 2,297,026,000 | 2,258,660,000 | 1,840,665,000 | ||
Funding Debt | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | [1] | 7.15% | |||
Borrowing capacity | $ 2,149,489,000 | ||||
Total debt, outstanding | $ 1,482,616,000 | 1,330,759,000 | 954,302,000 | ||
Funding Debt | 2018-1 Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Maturity date | [2] | 2027-03 | |||
Weighted average interest rate | [1] | 9.29% | |||
Borrowing capacity | $ 200,000,000 | ||||
Total debt, outstanding | $ 5,479,000 | 192,717,000 | 150,000,000 | ||
Funding Debt | 2018-2 Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Maturity date | [3] | 2025-07 | |||
Weighted average interest rate | [1] | 9.39% | |||
Borrowing capacity | $ 225,000,000 | ||||
Total debt, outstanding | $ 116,039,000 | 179,654,000 | 189,327,000 | ||
Funding Debt | 2019-A Securitization Notes | |||||
Debt Instrument [Line Items] | |||||
Maturity date | 2026-06 | ||||
Total debt, outstanding | 5,343,000 | ||||
Funding Debt | NCR 2022 Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Maturity date | [4] | 2026-10 | |||
Weighted average interest rate | [1] | 9.84% | |||
Borrowing capacity | $ 125,000,000 | ||||
Total debt, outstanding | $ 33,215,000 | 43,958,000 | |||
Funding Debt | ODR 2021-1 Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Maturity date | [5] | 2024-11 | |||
Weighted average interest rate | [1] | 8.03% | |||
Borrowing capacity | $ 233,333,000 | ||||
Total debt, outstanding | $ 185,167,000 | 197,167,000 | 107,000,000 | ||
Funding Debt | ODR 2022-1 Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Maturity date | [6] | 2025-06 | |||
Weighted average interest rate | [6] | 7.99% | |||
Borrowing capacity | [6] | $ 420,000,000 | |||
Total debt, outstanding | $ 280,774,000 | 187,000,000 | |||
Funding Debt | RAOD Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Maturity date | [7] | 2025-11 | |||
Weighted average interest rate | [1] | 7.96% | |||
Borrowing capacity | $ 230,263,000 | ||||
Total debt, outstanding | $ 212,263,000 | 230,263,000 | 202,632,000 | ||
Funding Debt | HWCR 2023 Securitization Facility | |||||
Debt Instrument [Line Items] | |||||
Maturity date | [8] | 2026-05 | |||
Weighted average interest rate | [1],[8] | 9.49% | |||
Borrowing capacity | $ 287,214,000 | ||||
Total debt, outstanding | $ 221,000,000 | ||||
Funding Debt | ODAST III Securitization Notes | |||||
Debt Instrument [Line Items] | |||||
Maturity date | [9] | 2027-05 | |||
Weighted average interest rate | [1],[9] | 2.07% | |||
Borrowing capacity | $ 300,000,000 | ||||
Total debt, outstanding | $ 300,000,000 | 300,000,000 | 300,000,000 | ||
Funding Debt | 2023-A Securitization Notes | |||||
Debt Instrument [Line Items] | |||||
Maturity date | 2027-12 | ||||
Weighted average interest rate | 7.78% | ||||
Borrowing capacity | $ 128,679,000 | ||||
Total debt, outstanding | $ 128,679,000 | ||||
Corporate Debt | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | [1] | 8.55% | |||
Borrowing capacity | $ 995,390,000 | ||||
Total corporate debt | $ 821,390,000 | 934,000,000 | 894,000,000 | ||
Corporate Debt | Revolving Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maturity date | 2026-06 | ||||
Weighted average interest rate | [1],[10] | 8.66% | |||
Borrowing capacity | [10] | $ 440,000,000 | |||
Revolving line of credit | $ 266,000,000 | 309,000,000 | 269,000,000 | ||
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 | $ 180,390,000 | ||||
Senior Notes | $ 180,390,000 | 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 | ||
[1] The weighted average interest rate is determined based on the rates and principal balances on June 30, 2023 . 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 October 2024. 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 November 2024. The period during which new borrowings may be made under this facility expires in May 2025. The period during which new borrowings may be made under this facility expires in April 2024. The Company had outstanding letters of credit under the Revolving line of credit of $ 0.8 million as of each of the periods ended June 30, 2023 and 2022 and December 31, 2022 . |
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, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding amount | $ 0.8 | $ 0.8 | $ 0.8 |
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 | |||
Jun. 30, 2023 | May 25, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Weighted average interest rates | 8% | 5.84% | ||
Loss on extingiushment of debt | $ (271,000) | |||
HWCR 2023 Securitization Facility | ||||
Debt Instrument [Line Items] | ||||
Principal outstanding | $ 221,000,000 | |||
HWCR 2023 Securitization Facility | Class A Revolving Loan | ||||
Debt Instrument [Line Items] | ||||
Advance rate | 65.50% | |||
Commitment amount | $ 215,000,000 | |||
Debt instrument, borrowing rate | 2.70% | |||
HWCR 2023 Securitization Facility | Class B Revolving Loan | ||||
Debt Instrument [Line Items] | ||||
Advance rate | 87.50% | |||
Commitment amount | $ 72,200,000 | |||
Debt instrument, borrowing rate | 8.50% | |||
2023-A Notes | ||||
Debt Instrument [Line Items] | ||||
Secured debt | $ 170,000,000 | |||
Debt instrument, interest rate | 9% | |||
Percentage of expected maturity equivalent to interpolated U.S. Treasuries | 3.975% | |||
Securitization receivables sold to issuer | $ 200,000 | |||
8.50% Senior Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 8.50% | 8.50% | 8.50% | |
Debt istrument repurchase Pricipal amount | $ 69,600,000 | |||
Cash consideration for repurchase of notes | 69,500,000 | |||
Loss on extingiushment of debt | 300,000 | |||
Tax related to extingushment of debt | $ 200,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | |||
Effective tax rate | 24% | 24.10% | |
Unrecognized tax benefits | $ 110.7 | $ 64.7 | $ 87.7 |
Decrease in unrecognized tax benefits | 3.1 | ||
Unrecognized tax benefits that would affect the effective tax rate | $ 13.6 | ||
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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income | $ 48,145 | $ 52,401 | $ 99,068 | $ 104,844 |
Denominator: | ||||
Total weighted average basic shares | 31,084 | 32,497 | 31,212 | 32,933 |
Shares applicable to stock-based compensation | 1,119 | 987 | 1,244 | 1,248 |
Total weighted average diluted shares | 32,203 | 33,484 | 32,456 | 34,181 |
Earnings per common share: | ||||
Earnings per common share - basic | $ 1.55 | $ 1.61 | $ 3.17 | $ 3.18 |
Earnings per common share - diluted | $ 1.5 | $ 1.56 | $ 3.05 | $ 3.07 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options not included in computation of diluted earnings per share | 314,224 | 325,560 | 468,129 | 385,980 |
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 | 590,064 | 486,073 | 326,994 | 275,489 |
Operating Segment Information -
Operating Segment Information - Additional Information (Detail) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segment | 1 | ||
Number of operating segment | 1 | ||
Property and equipment, net | $ | $ 99,073 | $ 93,228 | $ 88,648 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue [Abstract] | ||||
Revenue | $ 499,431 | $ 407,990 | $ 982,687 | $ 793,721 |
United States | ||||
Revenue [Abstract] | ||||
Revenue | 493,015 | 404,538 | 972,068 | 786,694 |
Other International Countries | ||||
Revenue [Abstract] | ||||
Revenue | $ 6,416 | $ 3,452 | $ 10,619 | $ 7,027 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Revenue | $ 499,431,000 | $ 407,990,000 | $ 982,687,000 | $ 793,721,000 | |
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Outstanding balance from affiliates | 0 | 0 | |||
Linear | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Outstanding balance from affiliates | 0 | 0 | $ 0 | ||
Ondeck Australia | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Due from affiliate balance | $ 100,000 | 100,000 | $ 100,000 | 100,000 | $ 200,000 |
U.K. Business | |||||
Related Party Transaction [Line Items] | |||||
Agreement, Expiry date | July 8, 2022 | ||||
Revenue | 200,000 | ||||
Administrative fee due | $ 100,000 | $ 100,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Transfer of assets, amount | $ 0 | $ 0 | |||
Transfer of liabilities, amount | $ 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, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Consumer loans and finance receivables | [1],[2] | $ 1,168,044 | $ 1,083,062 | $ 989,128 |
Small business loans and finance receivables | [1],[2] | 1,924,401 | 1,935,466 | 1,471,723 |
Non-qualified savings plan assets | [3] | 7,505 | 5,884 | 5,567 |
Investment in trading security | [4] | 10,835 | 17,406 | 17,871 |
Total | 3,110,785 | 3,041,818 | 2,484,289 | |
Level 1 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Non-qualified savings plan assets | [3] | 7,505 | 5,884 | 5,567 |
Investment in trading security | [4] | 10,835 | 17,406 | 17,871 |
Total | 18,340 | 23,290 | 23,438 | |
Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Consumer loans and finance receivables | [1],[2] | 1,168,044 | 1,083,062 | 989,128 |
Small business loans and finance receivables | [1],[2] | 1,924,401 | 1,935,466 | 1,471,723 |
Total | $ 3,092,445 | $ 3,018,528 | $ 2,460,851 | |
[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 $ 695.1 million , $ 435.6 million and $ 528.8 million in assets of consolidated VIEs as of June 30, 2023 and 2022 and December 31, 2022, respectively. Small business loans and finance receivables include $ 1,288.0 million , $ 758.5 million and $ 1,170.9 million in assets of consolidated VIEs as of June 30, 2023 and 2022 and December 31, 2022 , 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, 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, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Consumer loans and finance receivables | $ 695.1 | $ 528.8 | $ 435.6 |
Small business loans and finance receivables | $ 1,288 | $ 1,170.9 | $ 758.5 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Carrying Value | ||||
Financial assets: | ||||
Cash and cash equivalents | $ 100,042 | $ 100,165 | $ 144,090 | |
Restricted cash | [1] | 161,619 | 78,235 | 69,664 |
Investment in unconsolidated investee | [2] | 6,918 | 6,918 | 6,918 |
Total | 268,579 | 185,318 | 220,672 | |
Financial liabilities: | ||||
Revolving line of credit | 266,000 | 309,000 | 269,000 | |
Securitization notes | 1,480,688 | 1,329,772 | 953,017 | |
Total | 2,302,078 | 2,263,772 | 1,847,017 | |
Carrying Value | 8.50% Senior Notes Due 2024 | ||||
Financial liabilities: | ||||
Senior notes | 180,390 | 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 | 100,042 | 100,165 | 144,090 | |
Restricted cash | [1] | 161,619 | 78,235 | 69,664 |
Total | 261,661 | 178,400 | 213,754 | |
Level 2 | Estimated Fair Value | ||||
Financial liabilities: | ||||
Securitization notes | 1,463,685 | 1,304,702 | 932,700 | |
Total | 2,034,096 | 1,888,410 | 1,491,306 | |
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2024 | ||||
Financial liabilities: | ||||
Senior notes | 205,390 | 237,185 | 232,438 | |
Level 2 | Estimated Fair Value | 8.50% Senior Notes Due 2025 | ||||
Financial liabilities: | ||||
Senior notes | 365,021 | 346,523 | 326,168 | |
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 | 266,000 | 309,000 | 269,000 | |
Total | $ 266,000 | $ 309,000 | $ 269,000 | |
[1] Restricted cash includes $ 145.8 million , $ 56.2 million and $ 65.5 million in assets of consolidated VIEs as of June 30, 2023 and 2022 and December 31, 2022 , 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, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Variable Interest Entity, Primary Beneficiary | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Restricted cash | $ 145.8 | $ 56.2 | $ 65.5 |
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 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Events - ODAS IV Securitization Notes $ in Millions | Jul. 27, 2023 USD ($) |
Subsequent Event [Line Items] | |
Initial principal amount | $ 227.1 |
Class A Notes | |
Subsequent Event [Line Items] | |
Initial principal amount | $ 143.8 |
Fixed interest rates (per annum) | 7% |
Class B Notes | |
Subsequent Event [Line Items] | |
Initial principal amount | $ 56.3 |
Fixed interest rates (per annum) | 8.25% |
Class C Notes | |
Subsequent Event [Line Items] | |
Initial principal amount | $ 27 |
Fixed interest rates (per annum) | 9.93% |