Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39050 | |
Entity Registrant Name | OPORTUN FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3361983 | |
Entity Address, Address Line One | 2 Circle Star Way | |
Entity Address, City or Town | San Carlos, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94070 | |
City Area Code | 650 | |
Local Phone Number | 810-8823 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | OPRT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,607,142 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001538716 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Cash and Cash Equivalents | $ 109,656 | $ 72,179 |
Restricted Cash | 53,824 | 63,962 |
Loans receivable at fair value | 1,605,388 | 1,882,088 |
Loans receivable at amortized cost | 0 | 42,546 |
Unamortized deferred origination costs and fees, net | 0 | (103) |
Allowance for loan losses | 0 | 3,972 |
Loans receivable at amortized cost, net | 0 | 38,471 |
Loans Receivable Held-for-sale, Amount | 1,046 | 715 |
Interest and fees receivable, net | 16,535 | 17,185 |
Right of use assets - operating | 48,762 | 50,503 |
Other Assets | 82,312 | 76,771 |
Total assets | 1,917,523 | 2,201,874 |
Secured financing | 191,180 | 60,910 |
Asset-backed notes at fair value | 1,125,444 | 1,129,202 |
Asset-backed notes at amortized cost | 0 | 359,111 |
Amount due to whole loan buyer | 26,810 | 33,354 |
Lease liabilities | 51,692 | 53,357 |
Other liabilities | 69,376 | 77,174 |
Total liabilities | 1,464,502 | 1,713,108 |
Preferred stock, $0.0001 par value - 100,000,000 shares authorized at September 30, 2020 and December 31, 2019; 0 shares issued and outstanding at September 30, 2020 and December 31, 2019 | 0 | 0 |
Preferred stock, additional paid-in capital | 0 | 0 |
Common stock, $0.0001 par value - 1,000,000,000 shares authorized at September 30, 2020 and December 31, 2019; 27,855,051 shares issued and 27,583,028 shares outstanding at September 30, 2020; 27,262,639 shares issued and 27,003,157 shares outstanding at December 31, 2019 | 6 | 6 |
Common stock, additional paid-in capital | 431,673 | 418,299 |
Common stock warrants | 0 | 63 |
Accumulated other comprehensive loss | (268) | (162) |
Retained earnings | 27,919 | 76,679 |
Treasury stock at cost, 272,023 and 259,482 shares at September 30, 2020 and December 31, 2019 | (6,309) | (6,119) |
Total stockholders' equity | 453,021 | 488,766 |
Total liabilities and stockholders' equity | $ 1,917,523 | $ 2,201,874 |
Consolidated Balance Sheets Bal
Consolidated Balance Sheets Balance Sheet Equity Captions (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 27,855,051 | 27,262,639 |
Common Stock, Shares, Outstanding | 27,583,028 | 27,003,157 |
Treasury Stock, Common, Shares | 272,023 | 259,482 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Interest income | $ 128,739 | $ 139,272 | $ 415,525 | $ 395,778 |
Non-interest income | 8,028 | 14,608 | 27,377 | 39,026 |
Total revenue | 136,767 | 153,880 | 442,902 | 434,804 |
Interest expense | 13,408 | 15,499 | 44,879 | 44,751 |
Provision (release) for loan losses | 0 | (426) | 0 | (3,755) |
Decrease in fair value | (29,633) | (24,339) | (177,584) | (78,567) |
Net revenue | 93,726 | 114,468 | 220,439 | 315,241 |
Technology and facilities | 31,641 | 26,772 | 93,927 | 72,849 |
Sales and marketing | 20,634 | 24,717 | 65,521 | 69,084 |
Personnel | 26,662 | 28,637 | 79,925 | 66,414 |
Outsourcing and professional fees | 11,491 | 16,041 | 36,232 | 42,797 |
General, administrative and other | 11,138 | 3,886 | 17,591 | 10,816 |
Total operating expenses | 101,566 | 100,053 | 293,196 | 261,960 |
Income (loss) before taxes | (7,840) | 14,415 | (72,757) | 53,281 |
Income tax expense (benefit) | (1,794) | 4,386 | (19,162) | 14,846 |
Net income (loss) | (6,046) | 10,029 | (53,595) | 38,435 |
Change in post-termination benefit obligation | 6 | 8 | (106) | (36) |
Total comprehensive income (loss) | (6,040) | 10,037 | (53,701) | 38,399 |
Net income (loss) attributable to common stockholders | $ (6,046) | $ (27,427) | $ (53,595) | $ 0 |
Earnings Per Share, Basic | $ (0.22) | $ (6.39) | $ (1.97) | $ 0 |
Earnings Per Share, Diluted | $ (0.22) | $ (6.39) | $ (1.97) | $ 0 |
Weighted Average Number of Shares Outstanding, Basic | 27,459,192 | 4,294,107 | 27,237,246 | 3,397,503 |
Weighted Average Number of Shares Outstanding, Diluted | 27,459,192 | 4,294,107 | 27,237,246 | 3,397,503 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Redeemable Preferred Stock [Member] | Redeemable Preferred Stock [Member]Conversion of Preferred Stock to Common Stock | Warrant [Member] | Warrant [Member]Conversion of Common Stock Warrants to Common Stock | Warrant [Member]Issuance of Preferred and Conversion to Common Stock Upon Exercise of Warrants Net | Common Stock [Member] | Common Stock [Member]Conversion of Common Stock Warrants to Common Stock | Common Stock [Member]Conversion of Preferred Stock to Common Stock | Common Stock [Member]Issuance of Preferred and Conversion to Common Stock Upon Exercise of Warrants Net | Preferred Stock [Member] | Preferred Stock [Member]Conversion of Preferred Stock to Common Stock | APIC - Convertible Preferred Stock [Member] | APIC - Convertible Preferred Stock [Member]Conversion of Preferred Stock to Common Stock | Warrant [Member] | Warrant [Member]Conversion of Common Stock Warrants to Common Stock | Warrant [Member]Issuance of Preferred and Conversion to Common Stock Upon Exercise of Warrants Net | Common Stock [Member] | Common Stock [Member]Conversion of Preferred Stock to Common Stock | APIC - Common Stock [Member] | APIC - Common Stock [Member]Conversion of Common Stock Warrants to Common Stock | APIC - Common Stock [Member]Conversion of Preferred Stock to Common Stock | APIC - Common Stock [Member]Issuance of Preferred and Conversion to Common Stock Upon Exercise of Warrants Net | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Retained Earnings [Member]Conversion of Preferred Stock to Common Stock | Treasury Stock [Member] | Treasury Stock [Member]Conversion of Common Stock Warrants to Common Stock |
Shares, Outstanding - Period Start at Dec. 31, 2018 | 14,043,977 | 24,959 | 2,935,249 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period Start at Dec. 31, 2018 | $ 346,549 | $ 16 | $ 257,887 | $ 130 | $ 3 | $ 44,411 | $ (132) | $ 52,662 | $ (8,428) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 7,317 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | 142 | 142 | ||||||||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 1,980 | 1,980 | ||||||||||||||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (125) | (125) | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (3) | (3) | ||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent | 14,614 | 14,614 | ||||||||||||||||||||||||||
Shares, Outstanding - Period End at Mar. 31, 2019 | 14,043,977 | 24,959 | 2,942,566 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period End at Mar. 31, 2019 | 363,157 | 16 | 257,887 | 130 | 3 | 46,533 | (135) | 67,151 | (8,428) | |||||||||||||||||||
Shares, Outstanding - Period Start at Dec. 31, 2018 | 14,043,977 | 24,959 | 2,935,249 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period Start at Dec. 31, 2018 | 346,549 | 16 | 257,887 | 130 | 3 | 44,411 | (132) | 52,662 | (8,428) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Dividends, Preferred Stock, Paid-in-kind | 37,456 | |||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent | 38,435 | |||||||||||||||||||||||||||
Shares, Outstanding - Period End at Sep. 30, 2019 | 0 | 15,869 | 27,001,251 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period End at Sep. 30, 2019 | 461,117 | 0 | 0 | 63 | 6 | 416,196 | (168) | 53,516 | (8,496) | |||||||||||||||||||
Shares, Outstanding - Period Start at Mar. 31, 2019 | 14,043,977 | 24,959 | 2,942,566 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period Start at Mar. 31, 2019 | 363,157 | 16 | 257,887 | 130 | 3 | 46,533 | (135) | 67,151 | (8,428) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,216 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | 4 | 4 | ||||||||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,035 | 2,035 | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (41) | (41) | ||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent | 13,792 | 13,792 | ||||||||||||||||||||||||||
Shares, Outstanding - Period End at Jun. 30, 2019 | 14,043,977 | 24,959 | 2,944,782 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period End at Jun. 30, 2019 | 378,947 | 16 | 257,887 | 130 | 3 | 48,572 | (176) | 80,943 | (8,428) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 96,371 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | 645 | 645 | ||||||||||||||||||||||||||
Adjustments to Additional Paid in Capital, Other | (86) | (86) | ||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 4,873,356 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | 60,479 | 60,479 | ||||||||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 11,163 | 11,163 | ||||||||||||||||||||||||||
Dividends, Preferred Stock, Paid-in-kind | 37,456 | $ (37,456) | ||||||||||||||||||||||||||
Stockholders' Equity, Other Shares | (14,043,977) | (9,090) | ||||||||||||||||||||||||||
Stockholders' Equity, Other | $ (16) | $ (257,887) | $ (67) | |||||||||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 19,075,167 | 3,969 | ||||||||||||||||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 3 | $ 295,356 | $ 67 | |||||||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 11,627 | |||||||||||||||||||||||||||
Shares Withheld, Value, Net Share Settlement | (68) | (68) | ||||||||||||||||||||||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (4,021) | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 8 | 8 | ||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent | 10,029 | 10,029 | ||||||||||||||||||||||||||
Shares, Outstanding - Period End at Sep. 30, 2019 | 0 | 15,869 | 27,001,251 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period End at Sep. 30, 2019 | 461,117 | 0 | 0 | 63 | 6 | 416,196 | (168) | 53,516 | (8,496) | |||||||||||||||||||
Shares, Outstanding - Period Start at Dec. 31, 2019 | 0 | 23,512 | 27,003,157 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period Start at Dec. 31, 2019 | 488,766 | 0 | 0 | 63 | 6 | 418,299 | (162) | 76,679 | (6,119) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,161 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | 20 | 20 | ||||||||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 4,151 | 4,151 | ||||||||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 137,479 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (813) | (813) | ||||||||||||||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 4,835 | 4,835 | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (117) | (117) | ||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent | (13,301) | (13,301) | ||||||||||||||||||||||||||
Shares, Outstanding - Period End at Mar. 31, 2020 | 0 | 23,512 | 27,143,797 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period End at Mar. 31, 2020 | 483,541 | 0 | 0 | 63 | 6 | 421,657 | (279) | 68,213 | (6,119) | |||||||||||||||||||
Shares, Outstanding - Period Start at Dec. 31, 2019 | 0 | 23,512 | 27,003,157 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period Start at Dec. 31, 2019 | 488,766 | 0 | 0 | 63 | 6 | 418,299 | (162) | 76,679 | (6,119) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Dividends, Preferred Stock, Paid-in-kind | 0 | |||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent | (53,595) | |||||||||||||||||||||||||||
Shares, Outstanding - Period End at Sep. 30, 2020 | 0 | 0 | 27,583,028 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period End at Sep. 30, 2020 | 453,021 | 0 | 0 | 0 | 6 | 431,673 | (268) | 27,919 | (6,309) | |||||||||||||||||||
Shares, Outstanding - Period Start at Mar. 31, 2020 | 0 | 23,512 | 27,143,797 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period Start at Mar. 31, 2020 | 483,541 | 0 | 0 | 63 | 6 | 421,657 | (279) | 68,213 | (6,119) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 22,407 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | 79 | 79 | ||||||||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 4,972 | 4,972 | ||||||||||||||||||||||||||
Stockholders' Equity, Other Shares | (23,512) | |||||||||||||||||||||||||||
Stockholders' Equity, Other | $ (63) | |||||||||||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 10,972 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 253 | |||||||||||||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ (190) | |||||||||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 153,624 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (17) | (17) | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 5 | 5 | ||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent | (34,248) | (34,248) | ||||||||||||||||||||||||||
Shares, Outstanding - Period End at Jun. 30, 2020 | 0 | 0 | 27,330,800 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period End at Jun. 30, 2020 | 454,332 | 0 | 0 | 0 | 6 | 426,944 | (274) | 33,965 | (6,309) | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,018 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Stock Options Exercised | 24 | 24 | ||||||||||||||||||||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 5,194 | 5,194 | ||||||||||||||||||||||||||
Dividends, Preferred Stock, Paid-in-kind | 0 | |||||||||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 248,210 | |||||||||||||||||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (489) | (489) | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 6 | 6 | ||||||||||||||||||||||||||
Net Income (Loss) Attributable to Parent | (6,046) | (6,046) | ||||||||||||||||||||||||||
Shares, Outstanding - Period End at Sep. 30, 2020 | 0 | 0 | 27,583,028 | |||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest - Period End at Sep. 30, 2020 | $ 453,021 | $ 0 | $ 0 | $ 0 | $ 6 | $ 431,673 | $ (268) | $ 27,919 | $ (6,309) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ (53,595) | $ 38,435 |
Depreciation and amortization | 14,878 | 9,658 |
Fair value adjustment, net | 177,584 | 78,567 |
Origination fees for loans receivable at fair value, net | 3,520 | (2,172) |
Gain (loss) on loans sale | (13,406) | (25,291) |
Stock-based compensation expense | 14,317 | 15,178 |
Provision (release) for loan losses | 0 | (3,755) |
Deferred tax provision | (14,913) | 5,082 |
Other, net | 10,688 | 6,557 |
Origination of loans sold and held for sale | (134,552) | (248,441) |
Proceeds from sale of loans | 147,627 | 269,546 |
Interest and fee receivable, net | (3,678) | (3,407) |
Increase (Decrease) in Other Assets | (8,242) | (23,283) |
Increase (Decrease) in amount due to whole loan buyer | (6,544) | 2,159 |
Increase (Decrease) in Other Liabilities | 5,723 | 48,408 |
Net cash provided by operating activities | 139,407 | 167,241 |
Origination of loans | (665,148) | (1,035,536) |
Repayments of loan principal for loans | 804,619 | 753,072 |
Purchase of fixed assets | (3,610) | (5,765) |
Capitalization of system development costs | (16,492) | (11,734) |
Net cash provided by (used in) investing activities | 119,369 | (299,963) |
Borrowings under secured financing | 414,000 | 82,000 |
Proceeds from Issuance Initial Public Offering | 0 | 60,479 |
Borrowings under asset-backed notes | 0 | 249,951 |
Payments of secured financing | (284,006) | (169,000) |
Repayment of asset-backed notes | (360,001) | 0 |
Repayments of capital lease obligations | (29) | (102) |
Payments of Financing Costs | (205) | 0 |
Net payments related to stock-based activities | (1,196) | 638 |
Net cash provided by (used in) financing activities | (231,437) | 223,966 |
Net increase in cash and cash equivalents and restricted cash | 27,339 | 91,244 |
Cash and cash equivalents and restricted cash, beginning of period | 136,141 | 129,175 |
Cash and cash equivalents and restricted cash, end of period | 163,480 | 220,419 |
Total cash and cash equivalents and restricted cash | 163,480 | 220,419 |
Cash paid for income taxes, net of refunds | 2,443 | 2,786 |
Cash paid for interest and prepayment fees | 44,219 | 42,845 |
Operating Lease, Payments | 11,730 | 9,337 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 7,404 | 46,156 |
Dividends, Preferred Stock, Paid-in-kind | 0 | 37,456 |
Purchases of fixed assets included in accounts payable and accrued liabilities | $ 491 | $ 862 |
Organization and Description of
Organization and Description of the Business | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Oportun Financial Corporation (together with its subsidiaries, "Oportun" or the " Company") is a technology-powered and mission-driven provider of inclusive, affordable financial services to customers who do not have a credit score, known as credit invisibles, or who may have a limited credit history and are "mis-scored," meaning that the Company believes that traditional credit scores do not properly reflect such customers’ credit worthiness. The Company's primary product offerings are small dollar, unsecured installment loans that are affordably priced and that help customers establish a credit history. The Company has begun to expand beyond its core offering into other financial services that a significant portion of its customers already use, such as auto loans and credit cards. The Company has developed a proprietary lending platform that enables the Company to underwrite the risk of low- and moderate-income customers that are credit invisible or mis-scored, leveraging data collected through the application process and data obtained from third-party data providers, and a technology platform for application processing, loan accounting and servicing. The Company is headquartered in San Carlos, California. The Company has been certified by the United States Department of the Treasury as a Community Development Financial Institution ("CDFI") since 2009. The Company uses securitization transactions, warehouse facilities and whole loan sales, to finance the principal amount of most of the loans it makes to its customers. Segments Segments are defined as components of an enterprise for which discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer and the Company's Chief Financial Officer are collectively considered to be the CODM. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company’s operations constitute a single reportable segment. Initial Public Offering On September 30, 2019, the Company completed its initial public offering (“IPO”), in which it issued and sold 4,873,356 shares of common stock and selling stockholders sold 2,314,144 shares of common stock, including the underwriters' over-allotment, at a price of $15.00 per share with net proceeds to the Company of approximately $60.5 million, after deducting underwriting discounts and commissions of $5.1 million and offering expenses paid by the Company of approximately $7.5 million. In connection with the IPO, all 14,043,977 shares of the Company’s outstanding redeemable convertible preferred stock automatically converted into 19,075,167 shares of common stock. Additionally, on September 26, 2019, 3,969 shares of common stock were issued in connection with the cashless exercise of 9,090 Series F-1 convertible preferred stock warrants. O n Se |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies Basis of Presentation ‑ The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These statements are unaudited and reflect all normal, recurring adjustments that are, in management's opinion, necessary for the fair presentation of results. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior-period financial information has been reclassified to conform to current period presentation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 ("the Annual Report"), filed with the Securities and Exchange Commission ("SEC") on February 28, 2020. All share and per share amounts for all periods presented in the accompanying condensed consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the Company's one-for-eleven reverse stock split. See "Initial Public Offering" above for additional information. Use of Estimates ‑ The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from those estimates and assumptions. Accounting Policies - There have been no changes to the Company's significant accounting policies from those described in Part II, Item 8 - Financial Statements and Supplementary Data in the Annual Report, except for the new accounting pronouncements subsequently adopted as noted below. Recently Adopted Accounting Standards Allowance for Loan Losses and Fair Value Option ‑ In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. This guidance significantly changes the way entities are required to measure credit losses. Under the new standard, estimated credit losses are based upon an expected credit loss approach rather than an incurred loss approach that was previously required. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition . This ASU provides an option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for certain financial assets upon the adoption of Topic 326. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , which deferred the effective date for public filers that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2018, including interim periods in those fiscal years. The Company elected to early adopt ASU 2016-13 and ASU 2019-05 effective January 1, 2020. The Company previously elected the fair value option for all loans originated after January 1, 2018. Upon adoption of ASU 2019-05, the Company elected the fair value option on all loans receivable originated prior to January 1, 2018 that were previously measured at amortized cost. As a result, adoption of ASU 2016-13 did not have impact on the Company's condensed consolidated financial statements and disclosures. The Company made an accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts as the Company writes off the uncollectible accrued interest receivable balance in a timely manner and makes relevant disclosures. The adoption of ASU 2019-05 and fair value election resulted in (i) the release of the remaining allowance for loan losses on Loans Receivable at Amortized Cost as of December 31, 2019; (ii) recognition of the unamortized net originations fee income as of December 31, 2019; and (iii) measurement of the remaining loans originated prior to January 1, 2018 at fair value. These adjustments resulted in an increase to opening retained earnings as of January 1, 2020 of approximately $4.8 million . ASU 2019-05 does not allow for the fair value option to be elected on the Company's asset-backed notes carried at amortized cost. Fair Value Disclosures ‑ In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement . This ASU simplifies the disclosure requirements for fair value measurements. The Company adopted this ASU effective January 1, 2020. The simplified disclosure requirements included a new disclosure for the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. These new disclosure requirements were applied prospectively. Cloud Computing Arrangements - In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use-Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the amendments of this ASU effective January 1, 2020 on a prospective basis with no impact upon adoption. All eligible implementation costs related to cloud computing arrangements are now recorded as part of "prepaid expenses" within "Other assets" on the Condensed Consolidated Balance Sheets (Unaudited). The amortization expense is presented in the same line on the income statement as the fees for the associated hosted service within "Operating expenses" on the Company's Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited), and the cash payments related to implementation of cloud computing arrangements are classified as "cash flows from operating activities" within the Condensed Consolidated Statements of Cash Flow (Unaudited). Accounting Standards to be Adopted Income Taxes - In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. The ASU is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and disclosures. Reference Rate Reform - In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this ASU provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform if certain criteria are met. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. The amendments in this ASU must be applied prospectively for all eligible contract modifications. The Company has evaluated the effect of the new guidance and determined it will not have a material impact on its consolidated financial statements and disclosures. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 3. Earnings (Loss) per Share Basic and diluted earnings (loss) per share are calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2020 2019 2020 2019 Net income (loss) $ (6,046) $ 10,029 $ (53,595) $ 38,435 Less: Additional common stock issued to Series G shareholders — (37,456) — (37,456) Less: Net income allocated to participating securities (1) — — — (979) Net (loss) income attributable to common stockholders $ (6,046) $ (27,427) $ (53,595) $ — Basic weighted-average common shares outstanding 27,459,192 4,294,107 27,237,246 3,397,503 Weighted average effect of dilutive securities: Stock options — — — — Restricted stock units — — — — Warrants — — — — Diluted weighted-average common shares outstanding 27,459,192 4,294,107 27,237,246 3,397,503 Earnings (loss) per share: Basic $ (0.22) $ (6.39) $ (1.97) $ — Diluted $ (0.22) $ (6.39) $ (1.97) $ — (1) In a period of net income, both earnings and dividends (if any) are allocated to participating securities. In a period of net loss, only dividends (if any) are allocated to participating securities. The following common share equivalent securities have been excluded from the calculation of diluted weighted-average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options 4,462,158 4,571,154 4,352,649 4,705,200 Restricted stock units 2,331,678 1,325,166 2,120,068 779,776 Warrants — 24,880 13,866 24,933 Convertible preferred stock — 16,266,773 — 16,886,597 Total anti-dilutive common share equivalents 6,793,836 22,187,973 6,486,583 22,396,506 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure | 4. Variable Interest Entities As part of the Company’s overall funding strategy, the Company transfers a pool of designated loans receivable to wholly owned special-purpose subsidiaries ("VIEs") to collateralize certain asset-backed financing transactions. The Company has determined that it is the primary beneficiary of these VIEs because it has the power to direct the activities that most significantly impact the VIEs’ economic performance and the obligation to absorb the losses or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. Such power arises from the Company’s contractual right to service the loans receivable securing the VIEs’ asset-backed debt obligations. The Company has an obligation to absorb losses or the right to receive benefits that are potentially significant to the VIEs because it retains the residual interest of each asset-backed financing transaction either in the form of an asset-backed certificate or as an uncertificated residual interest. Accordingly, the Company includes the VIEs’ assets, including the assets securing the financing transactions, and related liabilities in its consolidated financial statements. Each VIE issues a series of asset-backed securities that are supported by the cash flows arising from the loans receivable securing such debt. Cash inflows arising from such loans receivable are distributed monthly to the transaction’s noteholders and related service providers in accordance with the transaction’s contractual priority of payments. The creditors of the VIEs above have no recourse to the general credit of the Company as the primary beneficiary of the VIEs and the liabilities of the VIEs can only be settled by the respective VIE’s assets. The Company retains the most subordinated economic interest in each financing transaction through its ownership of the respective residual interest in each VIE. The Company has no obligation to repurchase loans receivable that initially satisfied the financing transaction’s eligibility criteria but subsequently became delinquent or a defaulted loans receivable. The following table represents the assets and liabilities of consolidated VIEs recorded on the Company’s Condensed Consolidated Balance Sheets (Unaudited): September 30, December 31, (in thousands) 2020 2019 Consolidated VIE assets Restricted cash $ 25,004 $ 28,821 Loans receivable at fair value 1,488,861 1,745,465 Loans receivable at amortized cost — 41,747 Interest and fee receivable 15,352 15,874 Total VIE assets 1,529,217 1,831,907 Consolidated VIE liabilities Secured financing (1) 191,994 62,000 Asset-backed notes at fair value 1,125,444 1,129,202 Asset-backed notes at amortized cost (1) — 360,001 Total VIE liabilities $ 1,317,438 $ 1,551,203 (1) Amounts exclude deferred financing costs. See Note 8, Borrowings for additional information. |
Loans Receivable at Amortized C
Loans Receivable at Amortized Cost, Net | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans Receivable at Amortized Cost | 5. Loans Receivable at Amortized Cost, Net |
Loans Held for Sale
Loans Held for Sale | 9 Months Ended |
Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | 6. Loans Held for Sale Whole Loan Sale Program ‑ In November 2014, the Company entered into a whole loan sale agreement with an institutional investor, which agreement has been amended from time to time. The term of the current agreement was set to expire on November 10, 2020. The parties have agreed to extend the agreement on the same terms through December 10, 2020. Additional extensions may be considered on a month-to-month basis. Pursuant to the agreement, the Company sells at least 10% of its unsecured loan originations, with an option to sell an additional 5%, subject to certain eligibility criteria and minimum and maximum volumes. In addition, from July 2017 to August 2020, the Company was party to a separate whole loan sale arrangement with an institutional investor providing for a commitment to sell 100% of the Company’s loans originated under its Access Loan Program. The Company chose not to renew the arrangement and allowed the agreement to expire on its terms on August 5, 2020. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | 7. Other Assets Other assets consist of the following: September 30, December 31, (in thousands) 2020 2019 Fixed assets Computer and office equipment $ 10,993 $ 10,432 Furniture and fixtures 11,030 10,768 Purchased software 4,945 4,527 Vehicles 79 171 Leasehold improvements 28,987 27,701 Total cost 56,034 53,599 Less: Accumulated depreciation (37,298) (30,765) Total fixed assets, net $ 18,736 $ 22,834 System development costs: System development costs $ 53,186 $ 36,795 Less: Accumulated amortization (26,071) (18,456) Total system development costs, net $ 27,115 $ 18,339 Servicer fee and whole loan receivables 1,102 6,621 Prepaid expenses 13,318 12,217 Deferred tax assets 1,346 1,563 Tax assets and other 20,695 15,197 Total other assets $ 82,312 $ 76,771 Fixed Assets Depreciation and amortization expense for the three months ended September 30, 2020 and 2019 was $2.2 million and $2.3 million, respectively, and for the nine months ended September 30, 2020 and 2019 it was $7.3 million, and $6.2 million, respectively. System Development Costs Amortization of system development costs for the three months ended September 30, 2020 and 2019 was $2.9 million and $1.3 million, respectively, and for the nine months ended September 30, 2020 and 2019 they were $7.6 million and $3.2 million, respectively. System development costs capitalized in the three months ended September 30, 2020 and 2019, were $5.3 million and $5.1 million, respectively, and for the nine months ended September 30, 2020 and 2019 they were $16.4 million and $12.2 million, respectively. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 8. Borrowings The following table presents information regarding the Company's Secured Financing facility: September 30, 2020 Variable Interest Entity Current Balance Commitment Amount Maturity Date Interest Rate (in thousands) Oportun Funding V, LLC $ 191,180 $ 400,000 October 1, 2021 LIBOR (minimum of 0.00%) + 2.45% December 31, 2019 Variable Interest Entity Current Balance Commitment Amount Maturity Date Interest Rate (in thousands) Oportun Funding V, LLC $ 60,910 $ 400,000 October 1, 2021 LIBOR (minimum of 0.00%) + 2.45% The Company elected the fair value option for all asset-backed notes issued on or after January 1, 2018. The following table presents information regarding asset-backed notes: September 30, 2020 Variable Interest Entity Initial note amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (in thousands) Asset-backed notes recorded at fair value: Oportun Funding XIII, LLC (Series 2019-A) $ 279,412 $ 294,118 $ 252,049 $ 299,659 3.22 % 3 years Oportun Funding XII, LLC (Series 2018-D) 175,002 184,213 177,768 187,641 4.50 % 3 years Oportun Funding X, LLC (Series 2018-C) 275,000 289,474 278,618 294,913 4.39 % 3 years Oportun Funding IX, LLC (Series 2018-B) 225,001 236,854 216,490 241,294 4.09 % 3 years Oportun Funding VIII, LLC (Series 2018-A) 200,004 222,229 200,519 226,632 3.83 % 3 years Total asset-backed notes recorded at fair value $ 1,154,419 $ 1,226,888 $ 1,125,444 $ 1,250,139 December 31, 2019 Variable Interest Entity Initial note amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (in thousands) Asset-backed notes recorded at fair value: Oportun Funding XIII, LLC (Series 2019-A) $ 279,412 $ 294,118 $ 251,090 $ 299,813 3.22 % 3 years Oportun Funding XII, LLC (Series 2018-D) 175,002 184,213 178,980 187,447 4.50 % 3 years Oportun Funding X, LLC (Series 2018-C) 275,000 289,474 280,852 294,380 4.39 % 3 years Oportun Funding IX, LLC (Series 2018-B) 225,001 236,854 216,306 241,000 4.09 % 3 years Oportun Funding VIII, LLC (Series 2018-A) 200,004 222,229 201,974 225,945 3.83 % 3 years Total asset-backed notes recorded at fair value $ 1,154,419 $ 1,226,888 $ 1,129,202 $ 1,248,585 Asset-backed notes recorded at amortized cost: Oportun Funding VII, LLC (Series 2017-B) $ 200,000 $ 222,231 $ 199,413 $ 225,925 3.51 % 3 years Oportun Funding VI, LLC (Series 2017-A) 160,001 188,241 159,698 191,223 3.36 % 3 years Total asset-backed notes recorded at amortized cost $ 360,001 $ 410,472 $ 359,111 $ 417,148 (1) Initial note amount issued includes notes retained by the Company as applicable. The current balances are measured at fair value for asset-backed notes recorded at fair value and measured at carrying amount for asset-back notes recorded at amortized cost. (2) Includes the unpaid principal balance of loans receivable, cash, cash equivalents and restricted cash pledged by the Company. (3) Weighted average interest rate excludes notes retained by the Company. On July 8, 2020, the Company redeemed its 2017-B asset-backed notes. The redemption was funded by drawing upon the Company's Secured Financing facility for $149.0 million and using $51.0 million of unrestricted cash. On March 9, 2020, the Company redeemed its Series 2017-A asset-backed notes. Advances under the Company’s Secured Financing facility were the primary source of funds for the redemption. After the redemptions of our Series 2017-B and 2017-A asset-back notes, the Company did not have any asset-backed notes recorded at amortized cost as of September 30, 2020. As of September 30, 2020, and December 31, 2019, the Company was in compliance with all covenants and requirements of the Secured Financing facility and asset-backed notes. In October 2020, the Company raised $39.8 million, net of fees and expenses, by selling $41.3 million of retained bonds related to our 2019-A and 2018-B asset-backed notes. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | 9. Other Liabilities Other liabilities consist of the following: September 30, December 31, (in thousands) 2020 2019 Accounts payable $ 2,579 $ 5,919 Accrued compensation 25,983 22,226 Accrued expenses 23,139 12,965 Accrued interest 3,067 3,842 Deferred tax liabilities 9,738 24,868 Current tax liabilities and other 4,870 7,354 Total other liabilities $ 69,376 $ 77,174 |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 10. Stockholders' Equity Convertible Preferred Stock - Immediately prior to the completion of the IPO, all 14,043,977 shares of convertible preferred stock were converted into 19,075,167 shares of the Company's common stock. The conversion of all of the Company's convertible preferred stock included an additional 1,873,355 shares of common stock issued for the conversion of the Series G convertible preferred stock to reflect the conversion rate of the Series G convertible preferred stock. The additional 1,873,355 shares issued to Series G convertible preferred stock holders resulted in a $37.5 million reduction to retained earnings and a corresponding increase to additional paid-in capital. There were no shares of convertible preferred stock issued or outstanding as of September 30, 2020 or December 31, 2019. Preferred Stock - The Board has the authority, without further action by the Company's stockholders, to issue up to 100,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the Board. There were no shares of undesignated preferred stock issued or outstanding as of September 30, 2020 or December 31, 2019. Common Stock - As of September 30, 2020 and December 31, 2019, the Company was authorized to issue 1,000,000,000 shares of common stock with a par value of $0.0001 per share. As of September 30, 2020, 27,855,051 and 27,583,028 shares were issued and outstanding, respectively, and 272,023 shares were held in treasury stock. As of December 31, 2019, 27,262,639 and 27,003,157 shares were issued and outstanding, respectively, and 259,482 shares were held in treasury stock. Warrants - On September 26, 2019, 3,969 shares of convertible preferred stock were issued in connection with the cashless exercise of 9,090 Series F-1 convertible preferred stock warrants. All 3,969 shares of convertible preferred stock were converted to common stock in connection with the IPO. On June 9, 2020, 10,972 shares of common stock were issued in connection with the cashless exercise of the outstanding common stock warrants. No warrants were outstanding as of September 30, 2020. |
Equity Compensation and Other B
Equity Compensation and Other Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | 11. Equity Compensation and Other Benefits The Company's stock-based plans are described and informational disclosures are provided in the Notes to the Consolidated Financial Statements included in the Annual Report. Stock-based Compensation - Total stock-based compensation expense included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Technology and facilities $ 1,010 $ 1,310 $ 2,693 $ 2,068 Sales and marketing 32 43 92 95 Personnel 4,152 9,810 11,532 13,015 Total stock-based compensation $ 5,194 $ 11,163 $ 14,317 $ 15,178 As of September 30, 2020, and December 31, 2019, the Company’s total unrecognized compensation cost related to nonvested stock-based option awards granted to employees was $11.0 million and $10.1 million, respectively, which will be recognized over a weighted-average vesting period of approximately 2.8 years and 2.4 years, respectively. As of September 30, 2020 and December 31, 2019, the Company's total unrecognized compensation cost related to nonvested restricted stock unit awards granted to employees was $41.6 million and $21.2 million, respectively, which will be recognized over a weighted average vesting period of approximately 3.1 years and 3.0 years, respectively. The Company capitalized compensation expense related to stock-based compensation of $0.3 million and $0.7 million for the three and nine months ended September 30, 2020, respectively, and capitalized $0.4 million and $0.6 million for the three and nine months ended September 30, 2019, respectively. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 12. Revenue Interest Income - Total interest income included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Interest income Interest on loans $ 127,267 $ 136,803 $ 410,124 $ 389,104 Fees on loans 1,472 2,469 5,401 6,674 Total interest income 128,739 139,272 415,525 395,778 Non-interest Income - Total non-interest income included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Non-interest income Gain on loan sales $ 3,882 $ 9,495 $ 13,406 $ 25,291 Servicing fees 3,515 3,932 12,003 11,149 Other income 631 1,181 1,968 2,586 Total non-interest income $ 8,028 $ 14,608 $ 27,377 $ 39,026 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 13. Income Taxes |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 14. Fair Value of Financial Instruments Financial Instruments at Fair Value The Company previously elected the fair value option to account for all loans receivable held for investment that were originated on or after January 1, 2018 (the "Initial Fair Value Loans"), and for all asset-backed notes issued on or after January 1, 2018 (the "Fair Value Notes"). Upon adoption of ASU 2019-05, effective January 1, 2020, the Company elected the fair value option on all loans receivable previously measured at amortized cost (the "Subsequent Fair Value Loans" and together with the Initial Fair Value Loans, the "Fair Value Loans"). Accordingly, for the nine months ended September 30, 2020, the Company did not have any loans receivable measured at amortized cost. Asset-backed notes issued prior to January 1, 2018 are accounted for at amortized cost, net. After the redemption of our Series 2017-B asset-back notes on July 8, 2020, we did not have any asset-backed notes at amortized cost as of September 30, 2020. Loans that the Company designates for sale will continue to be accounted for as held for sale and recorded at the lower of cost or fair value until the loans receivable are sold. The table below compares the fair value of loans receivable and asset-backed notes to their contractual balances for the periods shown: September 30, 2020 December 31, 2019 (in thousands) Unpaid Principal Balance Fair Value Unpaid Principal Balance Fair Value Assets Loans receivable $ 1,575,183 $ 1,605,388 $ 1,800,418 $ 1,882,088 Liabilities Asset-backed notes 1,113,165 1,125,444 1,113,165 1,129,202 The Company calculates the fair value of the Fair Value Notes using independent pricing services and broker price indications, which are based on quoted prices for identical or similar notes, which are Level 2 input measures. The Company primarily uses a discounted cash flow model to estimate the fair value of Level 3 instruments based on the present value of estimated future cash flows. This model uses inputs that are inherently judgmental and reflect management’s best estimates of the assumptions a market participant would use to calculate fair value. With the impact of COVID-19 on the securities market, the Company has included some expected market degradation in its model to reflect the possibility of delinquency rates increasing in the near term (and the corresponding increase in charge-offs and decrease in payments), deviating from what historical trends would suggest. The impact of COVID-19 on the economy continues to be a fluid situation and the Company will continue to adapt accordingly. The following tables present quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements: September 30, 2020 December 31, 2019 Minimum Maximum Weighted Average (2) Minimum (3) Maximum (3) Weighted Average Remaining cumulative charge-offs (1) 6.52% 64.07% 10.61% — — 9.61% Remaining cumulative prepayments (1) —% 34.71% 28.34% — — 34.95% Average life (years) 0.21 1.30 0.78 — — 0.81 Discount rate — — 7.84% — — 7.77% (1) Figure disclosed as a percentage of outstanding principal balance. (2) Unobservable inputs were weighted by outstanding principal balance, which are grouped by risk (type of customer, original loan maturity terms). (3) The Company adopted ASU 2018-13 on a prospective basis, effective January 1, 2020, therefore, these disclosures are not required as of December 31, 2019. Fair value adjustments related to financial instruments where the fair value option has been elected are recorded through earnings for the nine months ended September 30, 2020 and 2019. 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. 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 Company developed an internal model to estimate the Fair Value Loans. To generate future expected cash flows, the model combines receivable characteristics with assumptions about borrower behavior based on the Company’s historical loan performance. These cash flows are then discounted using a required rate of return that management estimates would be used by a market participant. The Company tested the fair value model by comparing modeled cash flows to historical loan performance to ensure that the model was complete, accurate and reasonable for the Company’s use. The Company also engaged a third party to create an independent fair value estimate for the Fair Value Loans, which provides a set of fair value marks using the Company’s historical loan performance data and whole loan sale prices to develop independent forecasts of borrower behavior. Their model generates expected cash flows which were then aggregated and compared to the Company’s actual cash flows within an acceptable range. The Company's internal valuation committee provides governance and oversight over the fair value pricing calculations and related financial statement disclosures. Additionally, this committee provides a challenge of the assumptions used and outputs of the model, including the appropriateness of such measures and periodically reviews the methodology and process to determine the fair value pricing. Any significant changes to the process must be approved by the committee. The table below presents a reconciliation of loans receivable at fair value on a recurring basis using significant unobservable inputs: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Balance – beginning of period $ 1,635,684 $ 1,513,413 $ 1,882,088 $ 1,227,469 Adjustment upon adoption of ASU 2019-05 — — 43,323 — Principal disbursements 283,894 459,227 804,767 1,216,582 Principal payments from customers (305,883) (266,663) (927,175) (696,173) Gross charge-offs (48,135) (31,229) (145,373) (82,275) Net increase (decrease) in fair value 39,828 7,141 (52,242) 16,286 Balance – end of period $ 1,605,388 $ 1,681,889 $ 1,605,388 $ 1,681,889 As of September 30, 2020, the aggregate fair value of loans that are 90 days or more past due and in non-accrual status was $2.0 million, and the aggregate unpaid principal balance for loans that are 90 days or more past due was $11.6 million. As of December 31, 2019, the aggregate fair value of loans that are 90 days or more past due and in non-accrual status was $3.6 million, and the aggregate unpaid principal balance for loans that are 90 days or more past due was $15.8 million. Financial Instruments Disclosed But Not Carried at Fair Value The following table presents the carrying value and estimated fair values of financial assets and liabilities disclosed but not carried at fair value and the level within the fair value hierarchy: September 30, 2020 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 109,656 $ 109,656 $ 109,656 $ — $ — Restricted cash 53,824 53,824 53,824 — — Loans receivable at amortized cost, net (Note 5) — — — — — Loans held for sale (Note 6) 1,046 1,046 — — 1,046 Liabilities Accounts payable 2,579 2,579 2,579 — — Secured financing (Note 8) 191,994 189,716 — 189,716 — December 31, 2019 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 72,179 $ 72,179 $ 72,179 $ — $ — Restricted cash 63,962 63,962 63,962 — — Loans receivable at amortized cost, net (Note 5) 38,471 43,482 — — 43,482 Loans held for sale (Note 6) 715 772 — — 772 Liabilities Accounts payable 5,919 5,919 5,919 — — Secured financing (Note 8) 62,000 62,000 — 62,000 — Asset-backed notes at amortized cost (Note 8) 359,111 360,668 — 360,668 — The Company uses the following methods and assumptions to estimate fair value: • Cash, cash equivalents, restricted cash and accounts payable ‑ The carrying values of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash and accounts payable, approximate Level 1 fair values of these financial instruments due to their short-term nature. • Loans receivable ‑ The fair value of loans receivable recorded at amortized cost were estimated by discounting the future expected cash flows using a required rate of return that management estimates would be used by a market participant. • Loans held for sale ‑ The fair values of loans held for sale are based on a negotiated agreement with the purchaser. • Secured financing and asset-backed notes ‑ The fair values of secured financing and asset-backed notes recorded at carrying value have been calculated using discount rates equivalent to the weighted-average market yield of comparable debt securities. The Company's asset-backed notes are valued by independent pricing services and brokers using quoted prices for identical or similar notes, which are Level 2 input measures. There were no transfers in or out of Level 3 assets and liabilities for the three and nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019. |
Leases, Commitments and Conting
Leases, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 15. Leases, Commitments and Contingencies Leases - The Company’s leases are primarily for real property consisting of retail locations and office space and have remaining lease terms of 10 years or less. The Company has elected the practical expedient to keep leases with terms of 12 months or less off the balance sheet as no recognition of a lease liability and a right-of-use asset is required. Operating lease expense is recognized on a straight-line basis over the lease term in "Technology and facilities" in the Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited). Most of the Company’s existing lease arrangements are classified as operating leases. At the inception of a contract, the Company determines if the contract is or contains a lease. At the commencement date of a lease, the Company recognizes a lease liability equal to the present value of the lease payments and a right-of-use asset representing the Company's right to use the underlying asset for the duration of the lease term. The Company’s leases include options to extend or terminate the arrangement at the end of the original lease term. The Company generally does not include renewal or termination options in its assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. Variable lease payments and short-term lease costs were deemed immaterial. The Company’s leases do not provide an explicit rate. The Company uses its contractual borrowing rate to determine lease discount rates. As of September 30, 2020, maturities of lease liabilities, excluding short-term leases and leases on a month-to-month basis, were as follows: (in thousands) Operating Leases Lease expense 2020 (remaining three months) $ 4,148 2021 14,767 2022 11,971 2023 10,117 2024 8,615 2025 6,562 Thereafter 1,443 Total lease payments 57,623 Imputed interest (5,499) Total leases $ 52,124 Sublease income 2020 (remaining three months) $ (435) 2021 and thereafter — Total lease payments (435) Imputed interest 3 Total sublease income $ (432) Net lease liabilities $ 51,692 Weighted average remaining lease term 4.6 years Weighted average discount rate 4.46 % As of December 31, 2019, maturities of lease liabilities, excluding short-term leases and leases on a month-to-month basis, were as follows: (in thousands) Operating Leases Lease expense 2020 15,227 2021 12,439 2022 9,663 2023 8,340 2024 7,488 Thereafter 7,293 Total lease payments 60,450 Imputed interest (6,240) Total leases $ 54,210 Sublease income 2020 (861) 2021 and thereafter — Total lease payments (861) Imputed interest 8 Total sublease income $ (853) Net lease liabilities $ 53,357 Weighted average remaining lease term 5.0 years Weighted average discount rate 4.49 % Purchase Commitment ‑ The Company has commitments to purchase information technology and communication services in the ordinary course of business, with various terms through 2023. These amounts are not reflective of the Company’s entire anticipated purchases under the related agreements; rather, they are determined based on the non-cancelable amounts to which the Company is contractually obligated. The Company’s purchase obligations are $2.1 million for the remainder of 2020, $10.8 million in 2021, $7.0 million in 2022, $1.1 million in 2023, and $0.0 million thereafter. Whole Loan Sale Program ‑ The Company has a commitment to sell to a third-party institutional investor 10% of its unsecured loan originations that satisfy certain eligibility criteria, and an additional 5% at the Company’s sole option. For details regarding the whole loan sale program, refer to Note 6, Loans Held for Sale . Access Loan Sale Program ‑ From July 2017 to August 2020, the Company was party to a separate whole loan sale arrangement with an institutional investor with a commitment to sell 100% of the originations pursuant to the Company’s Access Loan Program and service the sold loans. For details regarding the Access Loan Sale Program, refer to Note 6, Loans Held for Sale . Unfunded Loan and Credit Card Commitments - Unfunded loan and credit card commitments at September 30, 2020 and December 31, 2019 were $8.0 million and $2.3 million, respectively. Litigation - On June 13, 2017, a complaint, captioned Atinar Capital II, LLC and James Gutierrez v. David Strohm, et. al., CGC 17-559515, (the "Atinar Lawsuit"), was filed by plaintiffs James Gutierrez and Atinar Capital II, LLC (an LLC controlled by Gutierrez) (the "Gutierrez Plaintiffs"), in the Superior Court of the State of California, County of San Francisco, against certain of the Company's current and former directors and officers, and certain of the Company's stockholders alleging that the defendants breached their fiduciary duties to the Company's common stockholders in their capacities as officers, directors and/or controlling stockholders by approving certain of the Company's convertible preferred stock financing rounds that diluted the ownership of the Company's common stockholders, and that certain defendants allegedly aided and abetted such breaches. On October 17, 2019, after being given leave by the court to amend its complaint, the plaintiffs filed a second amended complaint that added Gutierrez Family Holdings, LLC (another entity controlled by Gutierrez) as an additional plaintiff, and pleading the case in the alternative as a derivative shareholder suit. As part of the derivative shareholder suit, Oportun Financial Corporation was added as a nominal defendant only. The second amended complaint sought unspecified monetary damages and other relief. On November 18, 2019, the Company filed a demurrer of the second amended complaint. On April 1, 2020, the Court issued an order sustaining the Company's demurrer in part, by dismissing Gutierrez Family Holdings, LLC from the case, and denying it in part. The Court subsequently ordered the parties to mediation. While the Company believes the claims in the Atinar lawsuit were without merit, the Company wanted to avoid the costs and management distraction of litigation and at mediation the parties have agreed to settle this matter. The Company has indemnified the current and former directors, officers and shareholders to whom it has indemnification obligations. On January 2, 2018, a complaint, captioned Opportune LLP v. Oportun, Inc. and Oportun, LLC, Civil Action No. 4:18-cv-00007 (the "Opportune Lawsuit"), was filed by plaintiff Opportune LLP in the United States District Court for the Southern District of Texas, against the Company and its wholly-owned subsidiary, Oportun, LLC. The complaint alleged various claims for trademark infringement, unfair competition, trademark dilution and misappropriation against the Company and Oportun, LLC and called for injunctive relief requiring the Company and Oportun, LLC to cease using its marks, as well as monetary damages related to the claims. In addition, on January 2, 2018, the plaintiff initiated a cancellation proceeding, Proceeding No. 92067634, before the Trademark Trial and Appeal Board seeking to cancel certain of the Company's trademarks, (the "Cancellation Proceeding" and, together with the Opportune Lawsuit, the "Opportune Matter"). On March 5, 2018, the Trademark Trial and Appeal Board granted the Company's motion to suspend the Cancellation Proceeding pending final disposition of the Opportune Lawsuit. On April 24, 2018, the District Court granted the Company's motion to partially dismiss the complaint, dismissing the plaintiff's misappropriation claim. On February 22, 2019, the plaintiff filed an amended complaint adding an additional claim under the Anti-Cybersquatting Protection Act to the remaining claims in the original complaint. On August 30, 2019, the Company filed a motion for summary judgment on all of the plaintiff's claims. On January 22, 2020, the District Court issued its decision denying the Company's motion for summary judgment. No trial date has been set. In connection with discussions regarding settlement of the Opportune Matter, the Company has recorded a liability of $1.9 million within Other liabilities and a corresponding insurance recovery receivable of $1.0 million within Other assets on the Condensed Consolidated Balance Sheets as of December 31, 2019. The income statement impact of $0.9 million was recorded through General, administrative and other on the Condensed Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2019. Actual results could differ from these estimates. See Part II. Item 1. Legal Proceedings for additional information regarding legal proceedings in which the Company is involved. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events In late October 2020, the Company executed a settlement agreement regarding the Atinar Lawsuit. As a result, the Company established an $8.8 million litigation reserve as of September 30, 2020 and reported a liability of $8.8 million within Other liabilities on the Condensed Consolidated Balance Sheets as of September 30, 2020. The income statement impact of $8.8 million was reported as part of General, administrative and other on the Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2020. In October 2020, the Company raised $39.8 million, net of fees and expenses, by selling $41.3 million of retained bonds related to its 2019-A and 2018-B asset-backed notes. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation ‑ The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These statements are unaudited and reflect all normal, recurring adjustments that are, in management's opinion, necessary for the fair presentation of results. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior-period financial information has been reclassified to conform to current period presentation. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 ("the Annual Report"), filed with the Securities and Exchange Commission ("SEC") on February 28, 2020. All share and per share amounts for all periods presented in the accompanying condensed consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the Company's one-for-eleven reverse stock split. See "Initial Public Offering" above for additional information. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates ‑ The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from those estimates and assumptions. |
New Accounting Pronouncements, Policy [Policy Text Block] | Allowance for Loan Losses and Fair Value Option ‑ In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. This guidance significantly changes the way entities are required to measure credit losses. Under the new standard, estimated credit losses are based upon an expected credit loss approach rather than an incurred loss approach that was previously required. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition . This ASU provides an option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for certain financial assets upon the adoption of Topic 326. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , which deferred the effective date for public filers that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2018, including interim periods in those fiscal years. The Company elected to early adopt ASU 2016-13 and ASU 2019-05 effective January 1, 2020. The Company previously elected the fair value option for all loans originated after January 1, 2018. Upon adoption of ASU 2019-05, the Company elected the fair value option on all loans receivable originated prior to January 1, 2018 that were previously measured at amortized cost. As a result, adoption of ASU 2016-13 did not have impact on the Company's condensed consolidated financial statements and disclosures. The Company made an accounting policy election not to measure an allowance for credit losses on accrued interest receivable amounts as the Company writes off the uncollectible accrued interest receivable balance in a timely manner and makes relevant disclosures. The adoption of ASU 2019-05 and fair value election resulted in (i) the release of the remaining allowance for loan losses on Loans Receivable at Amortized Cost as of December 31, 2019; (ii) recognition of the unamortized net originations fee income as of December 31, 2019; and (iii) measurement of the remaining loans originated prior to January 1, 2018 at fair value. These adjustments resulted in an increase to opening retained earnings as of January 1, 2020 of approximately $4.8 million . ASU 2019-05 does not allow for the fair value option to be elected on the Company's asset-backed notes carried at amortized cost. Fair Value Disclosures ‑ In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , which amends ASC 820, Fair Value Measurement . This ASU simplifies the disclosure requirements for fair value measurements. The Company adopted this ASU effective January 1, 2020. The simplified disclosure requirements included a new disclosure for the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. These new disclosure requirements were applied prospectively. Cloud Computing Arrangements - In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use-Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the amendments of this ASU effective January 1, 2020 on a prospective basis with no impact upon adoption. All eligible implementation costs related to cloud computing arrangements are now recorded as part of "prepaid expenses" within "Other assets" on the Condensed Consolidated Balance Sheets (Unaudited). The amortization expense is presented in the same line on the income statement as the fees for the associated hosted service within "Operating expenses" on the Company's Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited), and the cash payments related to implementation of cloud computing arrangements are classified as "cash flows from operating activities" within the Condensed Consolidated Statements of Cash Flow (Unaudited). Income Taxes - In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. The ASU is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and disclosures. Reference Rate Reform - In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this ASU provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform if certain criteria are met. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. The amendments in this ASU must be applied prospectively for all eligible contract modifications. The Company has evaluated the effect of the new guidance and determined it will not have a material impact on its consolidated financial statements and disclosures. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value adjustments related to financial instruments where the fair value option has been elected are recorded through earnings for the nine months ended September 30, 2020 and 2019. 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. 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 Company developed an internal model to estimate the Fair Value Loans. To generate future expected cash flows, the model combines receivable characteristics with assumptions about borrower behavior based on the Company’s historical loan performance. These cash flows are then discounted using a required rate of return that management estimates would be used by a market participant. The Company tested the fair value model by comparing modeled cash flows to historical loan performance to ensure that the model was complete, accurate and reasonable for the Company’s use. The Company also engaged a third party to create an independent fair value estimate for the Fair Value Loans, which provides a set of fair value marks using the Company’s historical loan performance data and whole loan sale prices to develop independent forecasts of borrower behavior. Their model generates expected cash flows which were then aggregated and compared to the Company’s actual cash flows within an acceptable range. The Company's internal valuation committee provides governance and oversight over the fair value pricing calculations and related financial statement disclosures. Additionally, this committee provides a challenge of the assumptions used and outputs of the model, including the appropriateness of such measures and periodically reviews the methodology and process to determine the fair value pricing. Any significant changes to the process must be approved by the committee. |
Leases, Commitments and Conti_2
Leases, Commitments and Contingencies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Short-term Leases | The Company has elected the practical expedient to keep leases with terms of 12 months or less off the balance sheet as no recognition of a lease liability and a right-of-use asset is required. Operating lease expense is recognized on a straight-line basis over the lease term in "Technology and facilities" in the Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited). |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and diluted earnings (loss) per share are calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2020 2019 2020 2019 Net income (loss) $ (6,046) $ 10,029 $ (53,595) $ 38,435 Less: Additional common stock issued to Series G shareholders — (37,456) — (37,456) Less: Net income allocated to participating securities (1) — — — (979) Net (loss) income attributable to common stockholders $ (6,046) $ (27,427) $ (53,595) $ — Basic weighted-average common shares outstanding 27,459,192 4,294,107 27,237,246 3,397,503 Weighted average effect of dilutive securities: Stock options — — — — Restricted stock units — — — — Warrants — — — — Diluted weighted-average common shares outstanding 27,459,192 4,294,107 27,237,246 3,397,503 Earnings (loss) per share: Basic $ (0.22) $ (6.39) $ (1.97) $ — Diluted $ (0.22) $ (6.39) $ (1.97) $ — (1) In a period of net income, both earnings and dividends (if any) are allocated to participating securities. In a period of net loss, only dividends (if any) are allocated to participating securities. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following common share equivalent securities have been excluded from the calculation of diluted weighted-average common shares outstanding because the effect is anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options 4,462,158 4,571,154 4,352,649 4,705,200 Restricted stock units 2,331,678 1,325,166 2,120,068 779,776 Warrants — 24,880 13,866 24,933 Convertible preferred stock — 16,266,773 — 16,886,597 Total anti-dilutive common share equivalents 6,793,836 22,187,973 6,486,583 22,396,506 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table represents the assets and liabilities of consolidated VIEs recorded on the Company’s Condensed Consolidated Balance Sheets (Unaudited): September 30, December 31, (in thousands) 2020 2019 Consolidated VIE assets Restricted cash $ 25,004 $ 28,821 Loans receivable at fair value 1,488,861 1,745,465 Loans receivable at amortized cost — 41,747 Interest and fee receivable 15,352 15,874 Total VIE assets 1,529,217 1,831,907 Consolidated VIE liabilities Secured financing (1) 191,994 62,000 Asset-backed notes at fair value 1,125,444 1,129,202 Asset-backed notes at amortized cost (1) — 360,001 Total VIE liabilities $ 1,317,438 $ 1,551,203 (1) Amounts exclude deferred financing costs. See Note 8, Borrowings for additional information. |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets [Table Text Block] | Other assets consist of the following: September 30, December 31, (in thousands) 2020 2019 Fixed assets Computer and office equipment $ 10,993 $ 10,432 Furniture and fixtures 11,030 10,768 Purchased software 4,945 4,527 Vehicles 79 171 Leasehold improvements 28,987 27,701 Total cost 56,034 53,599 Less: Accumulated depreciation (37,298) (30,765) Total fixed assets, net $ 18,736 $ 22,834 System development costs: System development costs $ 53,186 $ 36,795 Less: Accumulated amortization (26,071) (18,456) Total system development costs, net $ 27,115 $ 18,339 Servicer fee and whole loan receivables 1,102 6,621 Prepaid expenses 13,318 12,217 Deferred tax assets 1,346 1,563 Tax assets and other 20,695 15,197 Total other assets $ 82,312 $ 76,771 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Line of Credit [Member] | |
Debt Instrument [Line Items] | |
Schedule of Debt [Table Text Block] | The following table presents information regarding the Company's Secured Financing facility: September 30, 2020 Variable Interest Entity Current Balance Commitment Amount Maturity Date Interest Rate (in thousands) Oportun Funding V, LLC $ 191,180 $ 400,000 October 1, 2021 LIBOR (minimum of 0.00%) + 2.45% December 31, 2019 Variable Interest Entity Current Balance Commitment Amount Maturity Date Interest Rate (in thousands) Oportun Funding V, LLC $ 60,910 $ 400,000 October 1, 2021 LIBOR (minimum of 0.00%) + 2.45% |
Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Schedule of Debt [Table Text Block] | The Company elected the fair value option for all asset-backed notes issued on or after January 1, 2018. The following table presents information regarding asset-backed notes: September 30, 2020 Variable Interest Entity Initial note amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (in thousands) Asset-backed notes recorded at fair value: Oportun Funding XIII, LLC (Series 2019-A) $ 279,412 $ 294,118 $ 252,049 $ 299,659 3.22 % 3 years Oportun Funding XII, LLC (Series 2018-D) 175,002 184,213 177,768 187,641 4.50 % 3 years Oportun Funding X, LLC (Series 2018-C) 275,000 289,474 278,618 294,913 4.39 % 3 years Oportun Funding IX, LLC (Series 2018-B) 225,001 236,854 216,490 241,294 4.09 % 3 years Oportun Funding VIII, LLC (Series 2018-A) 200,004 222,229 200,519 226,632 3.83 % 3 years Total asset-backed notes recorded at fair value $ 1,154,419 $ 1,226,888 $ 1,125,444 $ 1,250,139 December 31, 2019 Variable Interest Entity Initial note amount issued (1) Initial collateral balance (2) Current balance (1) Current collateral balance (2) Weighted average interest rate (3) Original revolving period (in thousands) Asset-backed notes recorded at fair value: Oportun Funding XIII, LLC (Series 2019-A) $ 279,412 $ 294,118 $ 251,090 $ 299,813 3.22 % 3 years Oportun Funding XII, LLC (Series 2018-D) 175,002 184,213 178,980 187,447 4.50 % 3 years Oportun Funding X, LLC (Series 2018-C) 275,000 289,474 280,852 294,380 4.39 % 3 years Oportun Funding IX, LLC (Series 2018-B) 225,001 236,854 216,306 241,000 4.09 % 3 years Oportun Funding VIII, LLC (Series 2018-A) 200,004 222,229 201,974 225,945 3.83 % 3 years Total asset-backed notes recorded at fair value $ 1,154,419 $ 1,226,888 $ 1,129,202 $ 1,248,585 Asset-backed notes recorded at amortized cost: Oportun Funding VII, LLC (Series 2017-B) $ 200,000 $ 222,231 $ 199,413 $ 225,925 3.51 % 3 years Oportun Funding VI, LLC (Series 2017-A) 160,001 188,241 159,698 191,223 3.36 % 3 years Total asset-backed notes recorded at amortized cost $ 360,001 $ 410,472 $ 359,111 $ 417,148 (1) Initial note amount issued includes notes retained by the Company as applicable. The current balances are measured at fair value for asset-backed notes recorded at fair value and measured at carrying amount for asset-back notes recorded at amortized cost. (2) Includes the unpaid principal balance of loans receivable, cash, cash equivalents and restricted cash pledged by the Company. (3) Weighted average interest rate excludes notes retained by the Company. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities [Table Text Block] | Other liabilities consist of the following: September 30, December 31, (in thousands) 2020 2019 Accounts payable $ 2,579 $ 5,919 Accrued compensation 25,983 22,226 Accrued expenses 23,139 12,965 Accrued interest 3,067 3,842 Deferred tax liabilities 9,738 24,868 Current tax liabilities and other 4,870 7,354 Total other liabilities $ 69,376 $ 77,174 |
Equity Compensation and Other_2
Equity Compensation and Other Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Stock-based Compensation - Total stock-based compensation expense included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Technology and facilities $ 1,010 $ 1,310 $ 2,693 $ 2,068 Sales and marketing 32 43 92 95 Personnel 4,152 9,810 11,532 13,015 Total stock-based compensation $ 5,194 $ 11,163 $ 14,317 $ 15,178 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Interest Income and Interest Expense Disclosure [Table Text Block] | Interest Income - Total interest income included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Interest income Interest on loans $ 127,267 $ 136,803 $ 410,124 $ 389,104 Fees on loans 1,472 2,469 5,401 6,674 Total interest income 128,739 139,272 415,525 395,778 |
Interest and Other Income [Table Text Block] | Non-interest Income - Total non-interest income included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) is as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Non-interest income Gain on loan sales $ 3,882 $ 9,495 $ 13,406 $ 25,291 Servicing fees 3,515 3,932 12,003 11,149 Other income 631 1,181 1,968 2,586 Total non-interest income $ 8,028 $ 14,608 $ 27,377 $ 39,026 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Option, Disclosures [Table Text Block] | The table below compares the fair value of loans receivable and asset-backed notes to their contractual balances for the periods shown: September 30, 2020 December 31, 2019 (in thousands) Unpaid Principal Balance Fair Value Unpaid Principal Balance Fair Value Assets Loans receivable $ 1,575,183 $ 1,605,388 $ 1,800,418 $ 1,882,088 Liabilities Asset-backed notes 1,113,165 1,125,444 1,113,165 1,129,202 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following tables present quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements: September 30, 2020 December 31, 2019 Minimum Maximum Weighted Average (2) Minimum (3) Maximum (3) Weighted Average Remaining cumulative charge-offs (1) 6.52% 64.07% 10.61% — — 9.61% Remaining cumulative prepayments (1) —% 34.71% 28.34% — — 34.95% Average life (years) 0.21 1.30 0.78 — — 0.81 Discount rate — — 7.84% — — 7.77% (1) Figure disclosed as a percentage of outstanding principal balance. (2) Unobservable inputs were weighted by outstanding principal balance, which are grouped by risk (type of customer, original loan maturity terms). (3) The Company adopted ASU 2018-13 on a prospective basis, effective January 1, 2020, therefore, these disclosures are not required as of December 31, 2019. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The table below presents a reconciliation of loans receivable at fair value on a recurring basis using significant unobservable inputs: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2020 2019 2020 2019 Balance – beginning of period $ 1,635,684 $ 1,513,413 $ 1,882,088 $ 1,227,469 Adjustment upon adoption of ASU 2019-05 — — 43,323 — Principal disbursements 283,894 459,227 804,767 1,216,582 Principal payments from customers (305,883) (266,663) (927,175) (696,173) Gross charge-offs (48,135) (31,229) (145,373) (82,275) Net increase (decrease) in fair value 39,828 7,141 (52,242) 16,286 Balance – end of period $ 1,605,388 $ 1,681,889 $ 1,605,388 $ 1,681,889 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table presents the carrying value and estimated fair values of financial assets and liabilities disclosed but not carried at fair value and the level within the fair value hierarchy: September 30, 2020 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 109,656 $ 109,656 $ 109,656 $ — $ — Restricted cash 53,824 53,824 53,824 — — Loans receivable at amortized cost, net (Note 5) — — — — — Loans held for sale (Note 6) 1,046 1,046 — — 1,046 Liabilities Accounts payable 2,579 2,579 2,579 — — Secured financing (Note 8) 191,994 189,716 — 189,716 — December 31, 2019 Carrying value Estimated fair value Estimated fair value (in thousands) Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 72,179 $ 72,179 $ 72,179 $ — $ — Restricted cash 63,962 63,962 63,962 — — Loans receivable at amortized cost, net (Note 5) 38,471 43,482 — — 43,482 Loans held for sale (Note 6) 715 772 — — 772 Liabilities Accounts payable 5,919 5,919 5,919 — — Secured financing (Note 8) 62,000 62,000 — 62,000 — Asset-backed notes at amortized cost (Note 8) 359,111 360,668 — 360,668 — |
Leases, Commitments and Conti_3
Leases, Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of September 30, 2020, maturities of lease liabilities, excluding short-term leases and leases on a month-to-month basis, were as follows: (in thousands) Operating Leases Lease expense 2020 (remaining three months) $ 4,148 2021 14,767 2022 11,971 2023 10,117 2024 8,615 2025 6,562 Thereafter 1,443 Total lease payments 57,623 Imputed interest (5,499) Total leases $ 52,124 Sublease income 2020 (remaining three months) $ (435) 2021 and thereafter — Total lease payments (435) Imputed interest 3 Total sublease income $ (432) Net lease liabilities $ 51,692 Weighted average remaining lease term 4.6 years Weighted average discount rate 4.46 % As of December 31, 2019, maturities of lease liabilities, excluding short-term leases and leases on a month-to-month basis, were as follows: (in thousands) Operating Leases Lease expense 2020 15,227 2021 12,439 2022 9,663 2023 8,340 2024 7,488 Thereafter 7,293 Total lease payments 60,450 Imputed interest (6,240) Total leases $ 54,210 Sublease income 2020 (861) 2021 and thereafter — Total lease payments (861) Imputed interest 8 Total sublease income $ (853) Net lease liabilities $ 53,357 Weighted average remaining lease term 5.0 years Weighted average discount rate 4.49 % |
Organization and Description _2
Organization and Description of the Business Initial Public Offering (Details) $ / shares in Units, $ in Thousands | Jun. 09, 2020shares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 26, 2019shares | Sep. 09, 2019 | Sep. 30, 2019$ / sharesshares | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)$ / shares |
Subsidiary, Sale of Stock [Line Items] | |||||||
Shares Sold by Others Outside the Company | 2,314,144 | ||||||
Proceeds from Issuance Initial Public Offering | $ | $ 0 | $ 60,479 | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 11 | ||||||
Preferred Stock [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Conversion of Stock, Shares Converted | 14,043,977 | ||||||
Conversion of Stock, Shares Issued | 3,969 | ||||||
Common Stock [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 4,873,356 | ||||||
Conversion of Stock, Shares Issued | 10,972 | 19,075,167 | 3,969 | ||||
Warrant [Member] | Series F-1 Preferred [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Conversion of Stock, Shares Converted | 9,090 | ||||||
IPO [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 4,873,356 | ||||||
Shares Issued, Price Per Share | $ / shares | $ 15 | $ 15 | $ 15 | ||||
Proceeds from Issuance Initial Public Offering | $ | $ 60,500 | ||||||
Payments for Underwriting Expense | $ | 5,100 | ||||||
Payments of Stock Issuance Costs | $ | $ 7,500 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Details (Details) $ in Millions | Jan. 01, 2020USD ($) |
Accounting Policies [Abstract] | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 4.8 |
Earnings per Share Earnings Per
Earnings per Share Earnings Per Share Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net income (loss) | $ (6,046) | $ (34,248) | $ (13,301) | $ 10,029 | $ 13,792 | $ 14,614 | $ (53,595) | $ 38,435 |
Dividends, Preferred Stock, Paid-in-kind | 0 | (37,456) | 0 | (37,456) | ||||
Net income allocated to participating securities | 0 | 0 | 0 | (979) | ||||
Net (loss) income attributable to common stockholders | $ (6,046) | $ (27,427) | $ (53,595) | $ 0 | ||||
Weighted Average Number of Shares Outstanding, Basic | 27,459,192 | 4,294,107 | 27,237,246 | 3,397,503 | ||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 0 | 0 | 0 | 0 | ||||
Weighted Average Number of Shares Outstanding, Diluted | 27,459,192 | 4,294,107 | 27,237,246 | 3,397,503 | ||||
Earnings Per Share, Basic, Undistributed | $ (0.22) | $ (6.39) | $ (1.97) | $ 0 | ||||
Earnings Per Share, Diluted, Undistributed | $ (0.22) | $ (6.39) | $ (1.97) | $ 0 | ||||
Equity Option [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 0 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 0 |
Earnings per Share Anti-dilutiv
Earnings per Share Anti-dilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,793,836 | 22,187,973 | 6,486,583 | 22,396,506 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,462,158 | 4,571,154 | 4,352,649 | 4,705,200 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,331,678 | 1,325,166 | 2,120,068 | 779,776 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 24,880 | 13,866 | 24,933 |
Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 16,266,773 | 0 | 16,886,597 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Pledged | $ 1,529,217 | $ 1,831,907 |
Variable Interest Entity, Consolidated, Liabilities, No Recourse | 1,317,438 | 1,551,203 |
Restricted Cash [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Pledged | 25,004 | 28,821 |
Loans Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Pledged | 1,488,861 | 1,745,465 |
Loans Receivable at Amortized Cost [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Pledged | 0 | 41,747 |
Financing Receivable [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Pledged | 15,352 | 15,874 |
Secured Financing [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Liabilities, No Recourse | 191,994 | 62,000 |
Liabilities at Fair Value [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Liabilities, No Recourse | 1,125,444 | 1,129,202 |
Asset-backed Notes at Amortized Cost [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Liabilities, No Recourse | $ 0 | $ 360,001 |
Loans Receivable at Amortized_2
Loans Receivable at Amortized Cost, Net Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Loans receivable at amortized cost, net | $ 0 | $ 38,471 |
Loans receivable at amortized cost | 0 | 42,546 |
Unamortized deferred origination costs and fees, net | 0 | (103) |
Allowance for loan losses | $ 0 | $ (3,972) |
Loans Held for Sale (Details)
Loans Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | ||||
Originations of loans sold and held for sale | $ 39,800 | $ 95,200 | $ 134,552 | $ 248,441 |
Gain (Loss) on Sales of Consumer Loans | 3,900 | 9,500 | 13,406 | 25,291 |
Servicing fees | $ 3,515 | $ 3,932 | $ 12,003 | $ 11,149 |
Minimum Loan Sale Rate, Whole Loan Sale Program | 10.00% | 10.00% | ||
Incremental Optional Loan Sale Rate, Whole Loan Sale Program | 5.00% | 5.00% | ||
Minimum Loan Sale Rate, Access Loan Program | 100.00% | 100.00% |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Computer and office equipment | $ 10,993 | $ 10,993 | $ 10,432 | ||
Furniture and fixtures | 11,030 | 11,030 | 10,768 | ||
Purchased software | 4,945 | 4,945 | 4,527 | ||
Vehicles | 79 | 79 | 171 | ||
Leasehold improvements | 28,987 | 28,987 | 27,701 | ||
Total cost | 56,034 | 56,034 | 53,599 | ||
Property, plant, and equipment, accumulated depreciation | (37,298) | (37,298) | (30,765) | ||
Total fixed assets, net | 18,736 | 18,736 | 22,834 | ||
System Development Costs | 53,186 | 53,186 | 36,795 | ||
System development costs, accumulated amortization | (26,071) | (26,071) | (18,456) | ||
Total system development costs, net | 27,115 | 27,115 | 18,339 | ||
Servicer fee and whole loan receivables | 1,102 | 1,102 | 6,621 | ||
Prepaid expenses | 13,318 | 13,318 | 12,217 | ||
Deferred Income Tax Assets, Net | 1,346 | 1,346 | 1,563 | ||
Other | 20,695 | 20,695 | 15,197 | ||
Other Assets | 82,312 | 82,312 | $ 76,771 | ||
Depreciation | 2,200 | $ 2,300 | 7,300 | $ 6,200 | |
Capitalized Computer Software, Amortization | 2,900 | 1,300 | 7,600 | 3,200 | |
Capitalized Computer Software, Additions | $ 5,300 | $ 5,100 | $ 16,400 | $ 12,200 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | Jul. 08, 2020 | Aug. 01, 2019 | Dec. 10, 2018 | Dec. 07, 2018 | Oct. 22, 2018 | Jul. 09, 2018 | Mar. 08, 2018 | Oct. 11, 2017 | Jun. 08, 2017 | Oct. 31, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||||||||||
Warehouse Agreement Borrowings | $ 191,180 | $ 60,910 | ||||||||||||
Asset-backed notes at fair value | 1,125,444 | 1,129,202 | ||||||||||||
Asset-backed notes at amortized cost | 0 | 359,111 | ||||||||||||
Repayments of Secured Debt | 360,001 | $ 0 | ||||||||||||
Proceeds from sale of loans | 147,627 | $ 269,546 | ||||||||||||
Subsequent Event [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from sale of loans | $ 39,800 | |||||||||||||
Loan Principal Sold | $ 41,300 | |||||||||||||
Warehouse Agreement Borrowings [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of Secured Debt | $ 149,000 | |||||||||||||
Cash [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of Secured Debt | $ 51,000 | |||||||||||||
Line of Credit [Member] | Secured Warehouse Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Warehouse Agreement Borrowings | 191,180 | 60,910 | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000 | 400,000 | ||||||||||||
Line of Credit Facility, Expiration Date | Oct. 1, 2021 | |||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR (minimum of 0.00%) + 2.45% | LIBOR (minimum of 0.00%) + 2.45% | ||||||||||||
Fair Value [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 1,154,419 | 1,154,419 | ||||||||||||
Asset-backed notes at fair value | 1,125,444 | 1,129,202 | ||||||||||||
Fair Value [Member] | Secured Debt [Member] | Initial Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | 1,226,888 | 1,226,888 | ||||||||||||
Fair Value [Member] | Secured Debt [Member] | Current Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | 1,250,139 | 1,248,585 | ||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-backed Notes Series 2019-A [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 279,412 | |||||||||||||
Asset-backed notes at fair value | 252,049 | 251,090 | ||||||||||||
Debt, Weighted Average Interest Rate | 3.22% | |||||||||||||
Debt Instrument, Term | 3 years | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-backed Notes Series 2019-A [Member] | Initial Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 294,118 | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-backed Notes Series 2019-A [Member] | Current Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | 299,659 | 299,813 | ||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-D [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 175,002 | |||||||||||||
Asset-backed notes at fair value | 177,768 | 178,980 | ||||||||||||
Debt, Weighted Average Interest Rate | 4.50% | |||||||||||||
Debt Instrument, Term | 3 years | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-D [Member] | Initial Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 184,213 | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-D [Member] | Current Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | 187,641 | 187,447 | ||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-C [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 275,000 | |||||||||||||
Asset-backed notes at fair value | 278,618 | 280,852 | ||||||||||||
Debt, Weighted Average Interest Rate | 4.39% | |||||||||||||
Debt Instrument, Term | 3 years | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-C [Member] | Initial Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 289,474 | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-C [Member] | Current Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | 294,913 | 294,380 | ||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-B [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 225,001 | |||||||||||||
Asset-backed notes at fair value | 216,490 | 216,306 | ||||||||||||
Debt, Weighted Average Interest Rate | 4.09% | |||||||||||||
Debt Instrument, Term | 3 years | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-B [Member] | Initial Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 236,854 | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-B [Member] | Current Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | 241,294 | 241,000 | ||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-A [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 200,004 | |||||||||||||
Asset-backed notes at fair value | 200,519 | 201,974 | ||||||||||||
Debt, Weighted Average Interest Rate | 3.83% | |||||||||||||
Debt Instrument, Term | 3 years | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-A [Member] | Initial Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 222,229 | |||||||||||||
Fair Value [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2018-A [Member] | Current Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 226,632 | 225,945 | ||||||||||||
Amortized Cost [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | 360,001 | |||||||||||||
Asset-backed notes at amortized cost | 359,111 | |||||||||||||
Amortized Cost [Member] | Secured Debt [Member] | Initial Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | 410,472 | |||||||||||||
Amortized Cost [Member] | Secured Debt [Member] | Current Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | 417,148 | |||||||||||||
Amortized Cost [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2017-B [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 200,000 | |||||||||||||
Asset-backed notes at amortized cost | 199,413 | |||||||||||||
Debt, Weighted Average Interest Rate | 3.51% | |||||||||||||
Debt Instrument, Term | 3 years | |||||||||||||
Amortized Cost [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2017-B [Member] | Initial Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 222,231 | |||||||||||||
Amortized Cost [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2017-B [Member] | Current Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | 225,925 | |||||||||||||
Amortized Cost [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2017-A [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 160,001 | |||||||||||||
Asset-backed notes at amortized cost | 159,698 | |||||||||||||
Debt, Weighted Average Interest Rate | 3.36% | |||||||||||||
Debt Instrument, Term | 3 years | |||||||||||||
Amortized Cost [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2017-A [Member] | Initial Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 188,241 | |||||||||||||
Amortized Cost [Member] | Secured Debt [Member] | Asset-Backed Notes Series 2017-A [Member] | Current Collateral [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Collateral Amount | $ 191,223 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Accounts payable | $ 2,579 | $ 5,919 |
Accrued compensation | 25,983 | 22,226 |
Accrued expenses | 23,139 | 12,965 |
Accrued interest | 3,067 | 3,842 |
Deferred Income Tax Liabilities, Net | 9,738 | 24,868 |
Other | 4,870 | 7,354 |
Other Liabilities | $ 69,376 | $ 77,174 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 09, 2020 | Sep. 30, 2019 | Sep. 26, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||||||
Dividends, Preferred Stock, Paid-in-kind | $ 0 | $ 37,456 | $ 0 | $ 37,456 | ||||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common Stock, Shares, Issued | 27,855,051 | 27,855,051 | 27,262,639 | |||||
Common Stock, Shares, Outstanding | 27,583,028 | 27,583,028 | 27,003,157 | |||||
Treasury Stock, Common, Shares | 272,023 | 272,023 | 259,482 | |||||
Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion of Stock, Shares Converted | 14,043,977 | |||||||
Conversion of Stock, Shares Issued | 3,969 | |||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion of Stock, Shares Issued | 10,972 | 19,075,167 | 3,969 | |||||
Common Stock [Member] | Series G Preferred [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion of Stock, Shares Issued | 1,873,355 | |||||||
Dividends, Preferred Stock, Paid-in-kind | $ 37,500 | |||||||
Warrant [Member] | Series F-1 Preferred [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion of Stock, Shares Converted | 9,090 |
Equity Compensation and Other_3
Equity Compensation and Other Benefits Share-based Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 5,194 | $ 11,163 | $ 14,317 | $ 15,178 | |
Share-based Payment Arrangement, Amount Capitalized | 300 | 400 | 700 | 600 | |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 1,200 | 0 | 2,400 | $ 0 | |
Option on Securities [Member] | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 11,000 | $ 11,000 | $ 10,100 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 9 months 18 days | 2 years 4 months 24 days | |||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 1 month 6 days | 3 years | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 41,600 | $ 41,600 | $ 21,200 | ||
Technology and Facilities [Member] | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Share-based Payment Arrangement, Expense | 1,010 | 1,310 | 2,693 | $ 2,068 | |
Sales and Marketing [Member] | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Share-based Payment Arrangement, Expense | 32 | 43 | 92 | 95 | |
Personnel [Member] | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 4,152 | $ 9,810 | $ 11,532 | $ 13,015 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Interest income | $ 127,267 | $ 136,803 | $ 410,124 | $ 389,104 |
Fees on loans | 1,472 | 2,469 | 5,401 | 6,674 |
Total interest income | 128,739 | 139,272 | 415,525 | 395,778 |
Gain on loan sales | 3,882 | 9,495 | 13,406 | 25,291 |
Servicing fees | 3,515 | 3,932 | 12,003 | 11,149 |
Other Income | 631 | 1,181 | 1,968 | 2,586 |
Total non-interest income | $ 8,028 | $ 14,608 | $ 27,377 | $ 39,026 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense (Benefit) | $ (1,794) | $ 4,386 | $ (19,162) | $ 14,846 |
Effective tax rate | 22.90% | 30.40% | 26.30% | 27.90% |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments Financial Instruments at Fair Value (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Loans receivable, unpaid principal balance | $ 1,575,183 | $ 1,575,183 | $ 1,800,418 | ||
Loans receivable, fair value | 1,605,388 | 1,605,388 | 1,882,088 | ||
Asset-backed notes, unpaid principal balance | 1,113,165 | 1,113,165 | 1,113,165 | ||
Asset-backed notes, fair value | 1,125,444 | 1,125,444 | 1,129,202 | ||
Fair Value, Option, Loans Held as Assets, 90 Days or More Past Due | 2,000 | 2,000 | 3,600 | ||
Fair Value, Option, Principal Balance of Loans Held as Assets, 90 Days or More Past Due | $ 11,600 | $ 11,600 | $ 15,800 | ||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Default Rate [Member] | Minimum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 0.0652 | 0.0652 | |||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Default Rate [Member] | Maximum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 0.6407 | 0.6407 | |||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Default Rate [Member] | Weighted Average [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 0.1061 | 0.1061 | 0.0961 | ||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Prepayment Rate [Member] | Minimum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Prepayment Rate [Member] | Maximum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 0.3471 | 0.3471 | |||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Prepayment Rate [Member] | Weighted Average [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 0.2834 | 0.2834 | 0.3495 | ||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Expected Term [Member] | Minimum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 0.21 | 0.21 | |||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Expected Term [Member] | Maximum [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 1.30 | 1.30 | |||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Expected Term [Member] | Weighted Average [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 0.78 | 0.78 | 0.81 | ||
Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate [Member] | Weighted Average [Member] | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Loans Held as Assets, Measurement Input | 0.0784 | 0.0784 | 0.0777 | ||
Loans Receivable [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance - beginning of period | $ 1,635,684 | $ 1,513,413 | $ 1,882,088 | $ 1,227,469 | |
Adjustment upon adoption of ASU 2019-05 | 0 | 0 | 43,323 | 0 | |
Principal disbursements of loans receivable at fair value | 283,894 | 459,227 | 804,767 | 1,216,582 | |
Principal payments from customers | (305,883) | (266,663) | (927,175) | (696,173) | |
Charge-offs | (48,135) | (31,229) | (145,373) | (82,275) | |
Net increase in fair value | 39,828 | 7,141 | (52,242) | 16,286 | |
Balance - end of period | $ 1,605,388 | $ 1,681,889 | $ 1,605,388 | $ 1,681,889 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments Financial Instruments at Amortized Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 109,656 | $ 72,179 |
Restricted cash | 53,824 | 63,962 |
Loans receivable at amortized cost | 0 | 38,471 |
Loans held for sale | 1,046 | 715 |
Accounts payable | 2,579 | 5,919 |
Secured financing | 191,994 | 62,000 |
Asset-backed notes at amortized cost | 359,111 | |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 109,656 | 72,179 |
Restricted cash | 53,824 | 63,962 |
Loans receivable at amortized cost | 0 | 43,482 |
Loans held for sale | 1,046 | 772 |
Accounts payable | 2,579 | 5,919 |
Secured financing | 189,716 | 62,000 |
Asset-backed notes at amortized cost | 360,668 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 109,656 | 72,179 |
Restricted cash | 53,824 | 63,962 |
Loans receivable at amortized cost | 0 | 0 |
Loans held for sale | 0 | 0 |
Accounts payable | 2,579 | 5,919 |
Secured financing | 0 | 0 |
Asset-backed notes at amortized cost | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Loans receivable at amortized cost | 0 | 0 |
Loans held for sale | 0 | 0 |
Accounts payable | 0 | 0 |
Secured financing | 189,716 | 62,000 |
Asset-backed notes at amortized cost | 360,668 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Loans receivable at amortized cost | 0 | 43,482 |
Loans held for sale | 1,046 | 772 |
Accounts payable | 0 | 0 |
Secured financing | $ 0 | 0 |
Asset-backed notes at amortized cost | $ 0 |
Leases, Commitments and Conti_4
Leases, Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Maximum Remaining Lease Term, Retail and Office | 10 years | ||||
2020 (remaining three months) | $ 4,148 | $ 4,148 | |||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 14,767 | 14,767 | $ 15,227 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 11,971 | 11,971 | 12,439 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 10,117 | 10,117 | 9,663 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 8,615 | 8,615 | 8,340 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 6,562 | 6,562 | 7,488 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 1,443 | 1,443 | 7,293 | ||
Total lease payments | 57,623 | 57,623 | 60,450 | ||
Lessee, Operating Lease, Liability, Imputed Interest | (5,499) | (5,499) | (6,240) | ||
Lessee, Operating Lease, Liability, Payments, Due Net of Imputed Interest | 52,124 | 52,124 | 54,210 | ||
2020 (remaining three months) | (435) | (435) | |||
Lessor, Operating Lease, Payments to be Received, Next Twelve Months | (861) | ||||
Lessor, Operating Lease, Payments to be Received, Thereafter | 0 | 0 | 0 | ||
Total sublease income | (435) | (435) | (861) | ||
Lessor, Operating Lease, Imputed Interest | 3 | 3 | 8 | ||
Lessor, Operating Lease, Payments to be Received Net of Imputed Interest | (432) | (432) | (853) | ||
Operating Lease, Liability | $ 51,692 | $ 51,692 | $ 53,357 | ||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 7 months 6 days | 4 years 7 months 6 days | 5 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.46% | 4.46% | 4.49% | ||
Operating Lease, Expense | $ 5,200 | $ 4,500 | $ 15,500 | $ 13,200 | |
Purchase Obligation, Future Minimum Payments, Remainder of Fiscal Year | 2,100 | 2,100 | |||
Purchase Obligation, Due in Next Twelve Months | 10,800 | 10,800 | |||
Purchase Obligation, Due in Second Year | 7,000 | 7,000 | |||
Purchase Obligation, Due in Third Year | 1,100 | 1,100 | |||
Purchase Obligation, Due after Fifth Year | $ 0 | $ 0 | |||
Minimum Loan Sale Rate, Whole Loan Sale Program | 10.00% | 10.00% | |||
Incremental Optional Loan Sale Rate, Whole Loan Sale Program | 5.00% | 5.00% | |||
Minimum Loan Sale Rate, Access Loan Program | 100.00% | 100.00% | |||
Other Commitment | $ 8,000 | $ 8,000 | $ 2,300 | ||
Estimated Litigation Liability | $ 8,800 | $ 8,800 | 1,900 | ||
Insurance Settlements Receivable | 1,000 | ||||
Litigation Settlement, Expense | $ 900 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Proceeds from sale of loans | $ 147,627 | $ 269,546 | ||
Estimated Litigation Liability | $ 8,800 | $ 1,900 | ||
Litigation Settlement, Expense | $ 900 | |||
Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from sale of loans | $ 39,800 | |||
Loan Principal Sold | $ 41,300 |