Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 25, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36270 | |
Entity Registrant Name | SANTANDER CONSUMER USA HOLDINGS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0414408 | |
Entity Address, Address Line One | 1601 Elm Street | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 634-1110 | |
Title of 12(b) Security | Common Stock ($0.01 par value) | |
Trading Symbol | SC | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding (in shares) | 306,111,379 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001580608 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents - $2,016,932 and $32,490 held at affiliates, respectively | $ 2,106,405 | $ 109,053 |
Finance receivables held for sale, net | 359,561 | 1,567,527 |
Finance receivables held for investment, at amortized cost | 33,183,439 | 33,114,638 |
Allowance for credit loss | (5,699,698) | (6,110,633) |
Finance receivables held for investment, at amortized cost, net | 27,483,741 | 27,004,005 |
Restricted cash - $6,808 and $27 held at affiliates, respectively | 2,248,667 | 2,221,094 |
Accrued interest receivable | 323,469 | 415,765 |
Leased vehicles, net | 15,529,610 | 16,391,107 |
Furniture and equipment, net of accumulated depreciation of $116,431 and $104,452, respectively | 62,168 | 62,032 |
Goodwill | 74,056 | 74,056 |
Intangible assets, net of amortization of $70,984 and $63,488, respectively | 75,176 | 70,128 |
Other assets - $6,956 and $14,451 held at affiliates, respectively | 811,597 | 972,726 |
TOTAL ASSETS | 49,074,450 | 48,887,493 |
LIABILITIES | ||
Borrowings and other debt obligations - $9,600,000 and $10,801,318 to/from affiliates, respectively | 38,431,858 | 41,138,674 |
Deferred tax liabilities, net | 1,855,859 | 1,263,796 |
Accounts payable and accrued expenses - $74,945 and $80,428 held at affiliates, respectively | 554,581 | 531,369 |
Other liabilities - $2,368 and $463 held at affiliates, respectively | 299,422 | 331,693 |
TOTAL LIABILITIES | 41,141,720 | 43,265,532 |
Commitments and contingencies (Notes 7 and 14) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.01 par value - 1,100,000,000 shares authorized; 363,536,761 and 363,159,613 shares issued and 306,111,379 and 306,091,978 shares outstanding, respectively | 3,061 | 3,061 |
Additional paid-in capital | 391,343 | 393,800 |
Accumulated other comprehensive income (loss), net of taxes | (31,194) | (50,566) |
Retained earnings | 7,569,520 | 5,275,666 |
TOTAL STOCKHOLDERS' EQUITY | 7,932,730 | 5,621,961 |
TOTAL LIABILITIES AND EQUITY | $ 49,074,450 | $ 48,887,493 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents held for affiliates | $ 2,016,932 | $ 32,490 |
Restricted cash held for affiliates | 6,808 | 27 |
Accumulated depreciation | 116,431 | 104,452 |
Amortization | 70,984 | 63,488 |
Other assets held at affiliates | 6,956 | 14,451 |
LIABILITIES | ||
Total borrowings and other debt obligations from/to affiliates | 9,600,000 | 10,801,318 |
Accounts payable and accrued expenses held at affiliates | 74,945 | 80,428 |
Other liabilities held at affiliates | $ 2,368 | $ 463 |
STOCKHOLDERS' EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,100,000,000 | 1,100,000,000 |
Common stock, shares issued (in shares) | 363,536,761 | 363,159,613 |
Common stock, shares outstanding (in shares) | 306,111,379 | 306,091,978 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Interest on finance receivables and loans | $ 1,215,121 | $ 1,300,694 | $ 3,749,264 | $ 3,811,113 |
Leased vehicle income | 670,334 | 725,156 | 2,115,134 | 2,210,684 |
Other finance and interest income | 1,631 | 2,146 | 6,125 | 12,354 |
Total finance and other interest income | 1,887,086 | 2,027,996 | 5,870,523 | 6,034,151 |
Interest expense — Including $77,407, $87,851 , $247,327 and $221,676 to affiliates, respectively | 218,747 | 292,118 | 709,479 | 929,934 |
Leased vehicle expense | 325,259 | 467,172 | 1,043,774 | 1,630,945 |
Net finance and other interest income | 1,343,080 | 1,268,706 | 4,117,270 | 3,473,272 |
Credit loss expense/(benefit) | 42,058 | 340,548 | (85,484) | 2,110,331 |
Net finance and other interest income after credit loss expense | 1,301,022 | 928,158 | 4,202,754 | 1,362,941 |
Profit sharing | 41,009 | 30,414 | 158,888 | 56,239 |
Net finance and other interest income after credit loss expense and profit sharing | 1,260,013 | 897,744 | 4,043,866 | 1,306,702 |
Investment gains (losses), net | 5,241 | (68,989) | (7,057) | (279,997) |
Servicing fee income — Including $9,916, $10,050, $29,217 and $33,923 from affiliates, respectively | 19,975 | 18,574 | 61,481 | 56,797 |
Fees, commissions, and other — Including $2,965, $1,254, $10,429 and $11,127 from affiliates, respectively | 48,867 | 78,924 | 200,242 | 256,123 |
Total other income | 74,083 | 28,509 | 254,666 | 32,923 |
Compensation and benefits | 149,669 | 127,991 | 460,014 | 388,960 |
Repossession expense | 33,349 | 35,910 | 117,540 | 115,861 |
Other expenses — Including $2,144, $1,456, $5,679 and $3,762 to affiliates, respectively | 179,147 | 99,761 | 382,313 | 308,193 |
Total operating expenses | 362,165 | 263,662 | 959,867 | 813,014 |
Income before income taxes | 971,931 | 662,591 | 3,338,665 | 526,611 |
Income tax expense | 208,607 | 172,476 | 775,484 | 137,161 |
Net income | 763,324 | 490,115 | 2,563,181 | 389,450 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on cash flow hedges, net of tax of $2,006, $2,083, $6,568 and $(10,419) respectively | 5,962 | 7,112 | 20,372 | (31,726) |
Unrealized gains (losses) on available-for-sale and held-to-maturity debt securities net of tax of $(100), $(88), $(324) and $500, respectively | (301) | (289) | (1,000) | 1,537 |
Comprehensive income | $ 768,985 | $ 496,938 | $ 2,582,553 | $ 359,261 |
Net income per common share (basic) (in dollars per share) | $ 2.49 | $ 1.58 | $ 8.37 | $ 1.21 |
Net income per common share (diluted) (in dollars per share) | 2.49 | 1.58 | 8.37 | 1.21 |
Dividends declared per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.88 | $ 0.66 |
Weighted average common shares (basic) (in shares) | 306,093,379 | 310,150,293 | 306,086,399 | 321,275,907 |
Weighted average common shares (diluted) (in shares) | 306,378,733 | 310,307,265 | 306,354,463 | 321,492,331 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Interest expense to affiliates | $ 77,407 | $ 87,851 | $ 247,327 | $ 221,676 |
Servicing fee income from affiliates | 9,916 | 10,050 | 29,217 | 33,923 |
Fees, commissions and other from affiliates | 2,965 | 1,254 | 10,429 | 11,127 |
Other operating costs to affiliates | 2,144 | 1,456 | 5,679 | 3,762 |
Change in unrealized gains (losses) on cash flow hedges, tax | 2,006 | 2,083 | 6,568 | (10,419) |
Unrealized gain/losses on available-for-sale securities, tax | $ (100) | $ (88) | $ (324) | $ 500 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 31, 2019 | 339,202,000 | ||||||
Beginning balance at Dec. 31, 2019 | $ 7,318,620 | $ 3,392 | $ 1,173,262 | $ (26,693) | $ 6,168,659 | ||
Beginning balance (ASU 2016-13) at Dec. 31, 2019 | $ (1,590,885) | $ (1,590,885) | |||||
Beginning balance (ASU 2019-12) at Dec. 31, 2019 | $ (382) | $ (382) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued in connection with employee incentive compensation plans (in shares) | 340,000 | ||||||
Stock issued in connection with employee incentive compensation plans | (1,506) | $ 3 | (1,509) | ||||
Stock-based compensation expense | $ 6,161 | 6,161 | |||||
Stock repurchase/Treasury stock (in shares) | (33,471,268,000) | (33,471,000) | |||||
Stock repurchase/Treasury stock | $ (775,970) | $ (334) | (775,636) | ||||
Dividends-Common stock | (212,637) | (212,637) | |||||
Tax sharing with affiliate | (7,850) | (7,850) | |||||
Net income | 389,450 | 389,450 | |||||
Other comprehensive income (loss), net of taxes | (30,189) | (30,189) | |||||
Ending balance (in shares) at Sep. 30, 2020 | 306,071,000 | ||||||
Ending balance at Sep. 30, 2020 | 5,094,812 | $ 3,061 | 394,428 | (56,882) | 4,754,205 | ||
Beginning balance (in shares) at Jun. 30, 2020 | 316,235,000 | ||||||
Beginning balance at Jun. 30, 2020 | 4,895,465 | $ 3,162 | 624,554 | (63,705) | 4,331,454 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued in connection with employee incentive compensation plans (in shares) | 34,000 | ||||||
Stock issued in connection with employee incentive compensation plans | 237 | 237 | |||||
Stock-based compensation expense | $ 1,010 | 1,010 | |||||
Stock repurchase/Treasury stock (in shares) | (10,198,800) | (10,198,000) | |||||
Stock repurchase/Treasury stock | $ (223,516) | $ (101) | (223,415) | ||||
Dividends-Common stock | (67,364) | (67,364) | |||||
Tax sharing with affiliate | (7,958) | (7,958) | |||||
Net income | 490,115 | 490,115 | |||||
Other comprehensive income (loss), net of taxes | 6,823 | 6,823 | |||||
Ending balance (in shares) at Sep. 30, 2020 | 306,071,000 | ||||||
Ending balance at Sep. 30, 2020 | $ 5,094,812 | $ 3,061 | 394,428 | (56,882) | 4,754,205 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 306,091,978 | 306,092,000 | |||||
Beginning balance at Dec. 31, 2020 | $ 5,621,961 | $ 3,061 | 393,800 | (50,566) | 5,275,666 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued in connection with employee incentive compensation plans (in shares) | 377,000 | ||||||
Stock issued in connection with employee incentive compensation plans | (1,971) | $ 4 | (1,975) | ||||
Stock-based compensation expense | $ 8,989 | 8,989 | |||||
Stock repurchase/Treasury stock (in shares) | (357,747) | (358,000) | |||||
Stock repurchase/Treasury stock | $ (9,475) | $ (4) | (9,471) | ||||
Dividends-Common stock | (269,327) | (269,327) | |||||
Net income | 2,563,181 | 2,563,181 | |||||
Other comprehensive income (loss), net of taxes | $ 19,372 | 19,372 | |||||
Ending balance (in shares) at Sep. 30, 2021 | 306,111,379 | 306,111,000 | |||||
Ending balance at Sep. 30, 2021 | $ 7,932,730 | $ 3,061 | 391,343 | (31,194) | 7,569,520 | ||
Beginning balance (in shares) at Jun. 30, 2021 | 306,081,000 | ||||||
Beginning balance at Jun. 30, 2021 | 7,229,630 | $ 3,060 | 389,890 | (36,855) | 6,873,535 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued in connection with employee incentive compensation plans (in shares) | 30,000 | ||||||
Stock issued in connection with employee incentive compensation plans | 220 | $ 1 | 219 | ||||
Stock-based compensation expense | $ 1,234 | 1,234 | |||||
Stock repurchase/Treasury stock (in shares) | 0 | ||||||
Dividends-Common stock | $ (67,339) | (67,339) | |||||
Net income | 763,324 | 763,324 | |||||
Other comprehensive income (loss), net of taxes | $ 5,661 | 5,661 | |||||
Ending balance (in shares) at Sep. 30, 2021 | 306,111,379 | 306,111,000 | |||||
Ending balance at Sep. 30, 2021 | $ 7,932,730 | $ 3,061 | $ 391,343 | $ (31,194) | $ 7,569,520 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.88 | $ 0.66 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash flows from operating activities: | |||
Net income | $ 2,563,181 | $ 389,450 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Derivative mark to market | (1,205) | 10,022 | |
Credit loss expense/(benefit) | (85,484) | 2,110,331 | |
Depreciation, amortization and accretion | 1,262,383 | 1,711,125 | |
Originations and purchases of receivables held for sale | (1,171,287) | (1,637,194) | |
Proceeds from sales and collections on retail installment contracts held for sale | [1] | 1,747,471 | 545,293 |
Investment losses, net | 7,057 | 279,997 | |
Stock-based compensation | 8,989 | 6,161 | |
Deferred tax expense | 585,820 | 142,554 | |
Net change in: | |||
Revolving personal loans | 34,247 | (59,096) | |
Other assets | 135,023 | (203,634) | |
Other liabilities | 45,380 | (43,067) | |
Net cash provided by operating activities | 5,131,575 | 3,251,942 | |
Cash flows from investing activities: | |||
Originations and purchases of portfolios on finance receivables held for investment | (13,816,075) | (12,782,253) | |
Collections on finance receivables held for investment | 11,685,416 | 9,223,448 | |
Proceeds from sales of retail installment contracts held for sale, originated as held for investment | [2] | 2,356,205 | 803,614 |
Leased vehicles purchased | (5,896,254) | (4,891,504) | |
Proceeds from sale of leased vehicles | 5,444,161 | 3,094,294 | |
Manufacturer incentives received | 73,920 | 339,717 | |
Change in revolving personal loans, net | 31,121 | 75,318 | |
Proceeds from repayments and maturities of available-for-sale securities | 5,000 | 0 | |
Purchases of held-to-maturity investment securities | 0 | (54,584) | |
Proceeds from repayments and maturities of held-to-maturity securities | 33,987 | 4,203 | |
Purchases of furniture and equipment | (20,557) | (18,117) | |
Sales of furniture and equipment | 13,580 | 3 | |
Net cash used in investing activities | (89,496) | (4,205,861) | |
Cash flows from financing activities: | |||
Proceeds from borrowings and other debt obligations, net of debt issuance costs - $4,731,607 and $11,545,000 from affiliates, respectively | 28,769,569 | 37,972,329 | |
Payments on borrowings and other debt obligations - $(5,931,607) and $(5,995,000) to affiliates, respectively | (31,508,722) | (35,818,793) | |
Proceeds from stock option exercises, gross | 801 | 673 | |
Shares repurchased | (9,475) | (775,970) | |
Dividends paid | (269,327) | (212,637) | |
Net cash provided by (used in) financing activities | (3,017,154) | 1,165,602 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 2,024,925 | 211,683 | |
Cash and cash equivalents and restricted cash— Beginning of year | 2,330,147 | 2,161,087 | |
Cash and cash equivalents and restricted cash— End of year | 4,355,072 | 2,372,770 | |
Supplemental cash flow information: | |||
Cash and cash equivalents | 2,106,405 | 105,616 | |
Restricted cash | 2,248,667 | 2,267,154 | |
Total cash, cash equivalents and restricted cash | $ 4,355,072 | $ 2,372,770 | |
[1] | Included in this balance is sales proceeds from Bluestem portfolio sale of $608 million for loans originated as held for sale. | ||
[2] | Included in this balance is sales proceeds from Bluestem portfolio sale of $188 million for loans originated as held for investment. |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash flows from financing activities: | |||
Proceeds from borrowings and other debt obligations, net of debt issuance costs, from affiliates | $ 4,731,607 | $ 11,545,000 | |
Payments on borrowings and other debt obligations, to affiliates | (5,931,607) | (5,995,000) | |
Proceeds from sales and collections on retail installment contracts held for sale | [1] | 1,747,471 | 545,293 |
Proceeds from sales of retail installment contracts held for sale, originated as held for investment | [2] | 2,356,205 | $ 803,614 |
Consumer Portfolio Segment | Personal Loans | |||
Cash flows from financing activities: | |||
Proceeds from sales and collections on retail installment contracts held for sale | 608,000 | ||
Proceeds from sales of retail installment contracts held for sale, originated as held for investment | $ 188,000 | ||
[1] | Included in this balance is sales proceeds from Bluestem portfolio sale of $608 million for loans originated as held for sale. | ||
[2] | Included in this balance is sales proceeds from Bluestem portfolio sale of $188 million for loans originated as held for investment. |
Description of Business, Basis
Description of Business, Basis of Presentation, and Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation, and Accounting Policies | Description of Business, Basis of Presentation, and Accounting Policies The Company is the holding company for SC Illinois, and its subsidiaries, a specialized consumer finance company focused on vehicle finance and third-party servicing and delivering service to dealers and customers across the full credit spectrum. The Company’s primary business is the indirect origination and servicing of retail installment contracts and leases, principally, through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. Additionally, the Company sells consumer retail installment contracts through flow agreements and, when market conditions are favorable, it accesses the ABS market through securitizations of consumer retail installment contracts. SAF is our primary vehicle financing brand and is available as a finance option for automotive dealers across the United States. Since May 2013, under the MPLFA with Stellantis, the Company has operated as Stellantis’s preferred provider for consumer loans, leases and dealer loans and provides services to Stellantis customers and dealers under the CCAP brand. These products and services include consumer retail installment contracts and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving lines of credit. The Company also originates vehicle loans through a web-based direct lending program, purchases vehicle retail installment contracts from other lenders, and services automobile and recreational and marine vehicle portfolios for other lenders. Additionally, the Company has other relationships through which it provides other consumer finance products. As of September 30, 2021, the Company was owned approximately 80.2% by SHUSA, a subsidiary of Santander, and approximately 19.8% by other shareholders. In August 2021, the Company entered into a definitive agreement whereby SHUSA agreed to acquire all of the outstanding shares of the common stock of the Company not already owned by SHUSA via an all-cash tender offer. Under the terms of the definitive agreement, a wholly-owned subsidiary of SHUSA commenced a tender offer to acquire all of the outstanding shares of the Company's common stock that SHUSA does not yet own at a price of $41.50 per share in cash. SHUSA agreed to acquire all remaining shares not tendered in the offer through a second- step merger at the same price as in the tender offer. Consummation of the tender offer is subject to various conditions, including regulatory approval of the Board of Governors of the Federal Reserve System and other customary conditions. Upon completion of the transaction, the Company would become a wholly-owned subsidiary of SHUSA. During the first quarter of 2021, the Company completed the sale of the Bluestem personal lending portfolio to a third party. In addition, the Company executed a forward flow sale agreement with a third party to purchase new advances of all personal lending receivables that the Company purchases from Bluestem through the term of the agreement with Bluestem. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries, including certain Trusts that are considered VIEs. The Company also consolidates other VIEs for which it is deemed to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in accordance with GAAP and pursuant to SEC regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments of a normal and recurring nature necessary for a fair statement of the Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Stockholder's Equity and Statement of Cash Flow for the interim periods indicated, and contain adequate disclosure to make the information presented not misleading. Results of operations for the periods presented herein are not necessarily indicative of results of operations for the entire year. These financial statements should be read in conjunction with the Annual Report of the Company on Form 10-K for the year ended December 31, 2020 (the "2020 Annual Report on Form 10-K"). Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates and those differences may be material. The most significant estimates include the determination of credit loss allowance, fair value measurements, expected end-of-term lease residual values, and income taxes. These estimates, although based on actual historical trends and modeling, may show significant variances over time. Business Segment Information The Company has one reportable segment, Consumer Finance, which includes the Company’s vehicle financial products and services, including retail installment contracts, vehicle leases, and financial products and services related to recreational vehicles and marine vehicles. Accounting Policies There have been no changes in the Company's accounting policies from those disclosed in Part II, Item 8 - Financial Statements and Supplementary Data in the 2020 Annual Report on Form 10-K. |
Finance Receivables
Finance Receivables | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Held for Investment Finance receivables held for investment, net is comprised of the following at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Retail installment contracts, net (a) $ 27,461,064 $ 26,975,368 Purchased receivables - credit deteriorated 1,440 6,197 Finance lease receivables (Note 4) 21,237 22,440 Finance receivables held for investment, net $ 27,483,741 $ 27,004,005 (a) The Company has elected the fair value option for certain retail installment contracts reported in finance receivables held for investment, net. As of September 30, 2021 and December 31, 2020, $6,170 and $5,614 of loans were recorded at fair value, respectively (Note 10). The Company’s held for investment portfolio of retail installment contracts is comprised of the following at September 30, 2021 and December 31, 2020: September 30, 2021 Retail Installment Contracts Non-TDR TDR Unpaid principal balance $ 28,779,433 $ 3,952,344 ACL (4,398,303) (1,297,841) Discount/(premium) (net of subvention and participation) 326,675 (3,601) Capitalized origination costs and fees 98,549 3,808 Net carrying balance $ 24,806,354 $ 2,654,710 ACL as a percentage of unpaid principal balance 15.3 % 32.8 % ACL and discount as a percentage of unpaid principal balance 14.1 % 32.9 % December 31, 2020 Retail Installment Contracts Non-TDR TDR Unpaid principal balance $ 28,977,299 $ 3,945,040 ACL (4,792,464) (1,314,170) Discount (net of subvention and participation) 66,373 (8,389) Capitalized origination costs and fees 97,638 4,041 Net carrying balance $ 24,348,846 $ 2,626,522 ACL as a percentage of unpaid principal balance 16.5 % 33.3 % ACL and discount as a percentage of unpaid principal balance 16.3 % 33.5 % Retail installment contracts Retail installment contracts are collateralized by vehicle titles, and the Company has the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract. Most of the Company’s retail installment contracts held for investment are pledged against warehouse lines or securitization bonds (Note 7). Most of the borrowers on the Company’s retail installment contracts held for investment are retail consumers; however, $973,205 and $864,680 of the unpaid principal balance represented fleet contracts with commercial borrowers as of September 30, 2021 and December 31, 2020, respectively. During the nine months ended September 30, 2021 and 2020, the Company originated (including through the SBNA originations program) $11,125,634 and $11,145,890, respectively, in CCAP loans which represented 53% and 61%, respectively, of the total retail installment contract originations (including the SBNA originations program). As of September 30, 2021, borrowers on the Company’s retail installment contracts held for investment are located in Texas (17%), Florida (11%), California (8%), Georgia (5%) and other states each individually representing less than 5% of the Company’s total portfolio. Purchased receivables During the three and nine months ended September 30, 2021 and 2020, the company purchased financial receivables from third party lenders for $67,018, and zero, respectively. The unpaid principal balance of these loans as of the acquisition date was $112,061 and zero, respectively. During the three and nine months ended September 30, 2021 and 2020, the Company recognized certain retail installment contracts with an unpaid principal balance of $42,264, $42,264, zero and $76,878, respectively, previously held by non-consolidated securitization Trusts, under optional clean-up calls (Note 6). Following the initial recognition of these loans at fair value, the performing loans in the portfolio are carried at amortized cost, net of allowance for credit losses. The Company elected the fair value option for all non-performing loans acquired (more than 60 days delinquent as of the re-recognition date), for which it was probable that not all contractually required payments would be collected (Note 10). Held for Sale The carrying value of the Company’s finance receivables held for sale, net is comprised of the following at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Retail installment contracts acquired individually $ 359,561 $ 674,048 Personal loans (a) — 893,479 (a) On March 31, 2021, the Company sold the personal lending portfolio. Refer to Note 1 – “Description of Business, Basis of Presentation, and Accounting Principles” to these Condensed Consolidated Financial Statements for more information. Sales of retail installment contracts, personal loans to third parties (unpaid principal balance), and proceeds from sales of charged-off assets for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Sales of retail installment contracts to third parties $ 277,898 $ 636,301 $ 2,968,467 $ 1,148,587 Sales of Personal Loans to third parties — — 1,253,746 — Proceeds from sales of charged-off assets to third parties — 9,144 13,901 30,019 |
Allowance for Credit Loss and C
Allowance for Credit Loss and Credit Quality | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
Allowance for Credit Loss and Credit Quality | Allowance for Credit Loss and Credit Quality Allowance for Credit Loss The Company maintains an ACL on the retail installment contracts held for investment, excluding those loans measured at fair value in accordance with applicable accounting standards. The Company maintains an expected ACL for receivables from dealers based on risk ratings and individually evaluates loans for specific impairment as necessary. The Company estimates losses on the finance lease receivable portfolio based on delinquency status, loss experience to date, future expectation of losses as well as various economic factors. Retail installment contracts The activity in the ACL for the retail installment contracts for the three and nine months ended September 30, 2021 and 2020 was as follows: Three Months Ended September 30, 2021 September 30, 2020 Retail Installment Contracts Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 4,299,670 $ 1,514,994 $ 4,818,187 $ 1,037,628 Credit loss expense (benefit) 188,195 (144,772) 24,841 314,075 Charge-offs (427,659) (206,111) (334,938) (200,352) Recoveries 338,097 133,730 392,042 97,171 Balance — end of period $ 4,398,303 $ 1,297,841 $ 4,900,132 $ 1,248,522 Nine Months Ended September 30, 2021 September 30, 2020 Retail Installment Contracts Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 4,792,464 $ 1,314,170 $ 2,123,878 $ 914,718 Day 1 - Adjustment to allowance for adoption of CECL standard — — 2,030,473 71,833 Credit loss expense (benefit) (252,963) 169,268 1,526,545 581,344 Charge-offs (a) (1,356,482) (599,083) (1,955,706) (617,536) Recoveries 1,215,284 413,486 1,174,942 298,163 Balance — end of period $ 4,398,303 $ 1,297,841 $ 4,900,132 $ 1,248,522 (a) Charge-offs decreased significantly, primarily driven by macro-economic improvements. Additionally, Charge-offs for retail installment contracts includes partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional ACL on these loans. The credit risk in the Company’s loan portfolios is driven by credit and collateral quality, and is affected by borrower- specific and economy-wide factors. In general, there is an inverse relationship between credit quality of loans and projections of impairment losses so that loans with better credit quality require a lower expected loss. The Company manages this risk through its underwriting, pricing strategies, credit policy standards, and servicing guidelines and practices, as well as through the application of geographic and other concentration limits. The Company estimates current expected credit losses based on prospective information as well as account level models based on historical data. Unemployment, HPI, and used vehicle index growth rates, along with loan level characteristics, are the key inputs used in the models for prediction of the likelihood that the borrower will default in the forecasted period (the probability of default). The used vehicle index is also used to estimate the loss in the event of default. The Company has determined the reasonable and supportable period to be three years at which time economic forecasts generally tend to revert to historical averages. The Company utilizes qualitative factors to capture any additional risks that may not be captured in either the economic forecasts or in the historical data, including consideration of the current levels of delinquency and used vehicle prices. The Company generally uses a third-party vendor's consensus baseline macroeconomic scenario for the quantitative estimate and additional positive and negative macroeconomic scenarios to make a qualitative adjustment for macroeconomic uncertainty, and considers adjustments to macroeconomic inputs and outputs based on market volatility. The scenarios used are periodically updated with weightings assigned by management and approved through established committee governance. The Company’s ACL decreased $119 million and $410 million for the three and nine months ended September 30, 2021. The decrease was primarily due to an improved macroeconomic outlook as well as improved credit quality and performance. Other portfolios The ACL for the period end and its activity for the finance lease receivable portfolio and purchased receivable portfolio-credit deteriorated, for the three and nine months ended September 30, 2021 and 2020, was insignificant. Delinquencies Retail installment contracts and personal amortizing term loans are generally classified as non-performing (or nonaccrual) when they are greater than 60 days past due as to contractual principal or interest payments. Dealer receivables are classified as non-performing when they are greater than 90 days past due. At the time a loan is placed in non-performing (nonaccrual) status, previously accrued and uncollected interest is reversed against interest income. If an account is returned to a performing (accrual) status, the Company returns to accruing interest on the loan. When an account is deferred, the loan is returned to accrual status during the deferral period and accrued interest related to the loan is evaluated for collectability. The Company considers an account delinquent when an obligor fails to pay substantially all (defined as 90%) of the scheduled payment by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. A summary of delinquencies as of September 30, 2021, and December 31, 2020 is as follows: September 30, 2021 Finance Receivables Held for Investment Retail Installment Contract Loans Purchased Receivables Portfolios - credit deteriorated Total Percent Amortized cost, 30-59 days past due $ 2,253,907 $ 401 $ 2,254,308 6.8 % Amortized cost over 59 days 1,106,673 400 1,107,073 3.3 % Total delinquent balance at amortized cost (a) $ 3,360,580 $ 801 $ 3,361,381 10.1 % (a) The amount of accrued interest excluded from the disclosed amortized cost table is $63,205. December 31, 2020 Finance Receivables Held for Investment Retail Installment Contract Loans Purchased Receivables Portfolios - credit impaired Total Percent Amortized cost, 30-59 days past due $ 1,971,766 $ 687 $ 1,972,453 6.0 % Amortized cost over 59 days 1,038,869 441 1,039,310 3.1 % Total delinquent balance at amortized cost (a) $ 3,010,635 $ 1,128 $ 3,011,763 9.1 % (a) The amount of accrued interest excluded from the disclosed amortized cost table is $73,794. On March 31, 2021, the Company sold the personal lending portfolio. Refer to Note 1 – “Description of Business, Basis of Presentation, and Accounting Principles” to these Condensed Consolidated Financial Statements for more information. The unpaid principal balance on revolving personal loans 90 days past due and still accruing totaled $78,880 as of December 31, 2020. Non-Accrual Loans for Retail Installment Contracts The amortized cost basis of financial instruments that are either non-accrual with related expected credit loss or non-accrual without related expected credit loss for retail installment contracts is as follows: September 30, 2021 Non-accrual loans Non-accrual loans with no allowance (a) Interest income recognized on nonaccrual loans (YTD) Non-accrual loans as a percent of total amortized cost Non-TDR $ 818,292 $ 157,314 $ 46,445 2.5 % TDR 391,834 47,281 26,576 1.2 % Total non-accrual loans $ 1,210,126 $ 204,595 $ 73,021 3.7 % December 31, 2020 Non-accrual loans Non-accrual loans with no allowance (a) Interest income recognized on nonaccrual loans (YTD) Non-accrual loans as a percent of total amortized cost Non-TDR $ 748,026 $ 145,287 $ 72,926 2.3 % TDR 385,021 46,498 35,620 1.2 % Total nonaccrual loans $ 1,133,047 $ 191,785 $ 108,546 3.5 % (a) These represent loans for which a bankruptcy notice was received and that have been partially written down to the collateral value less estimated costs to sell. Accordingly, there is no additional ACL on these loans. Delinquent balances and nonaccrual balances are lower as of December 31, 2020 primarily due to government stimulus payments provided to customers related to COVID-19 pandemic. Credit Quality Indicators FICO® Distribution (determined at origination) — Amortized Cost Basis (in millions) by Origination Year for Retail Installment Contacts Total September 30, 2021 2020 2019 2018 2017 2016 Prior Amount % No-FICO ® s 1,603 1,173 738 337 266 112 50 4,279 12.9% <540 1,573 1,306 948 608 283 151 125 4,994 15.1% 540-599 4,364 3,038 2,030 1,134 413 234 156 11,369 34.3% 600-639 2,828 1,831 1,182 625 201 123 65 6,855 20.7% >=640 (a) 2,345 1,655 853 506 151 105 45 5,660 17.0% Total (b) $ 12,713 $ 9,003 $ 5,751 $ 3,210 $ 1,314 $ 725 $ 441 $ 33,157 100.00% (a) Beginning in 2021, loans with FICO score of 640 are disclosed in the >=640 category. (b) The amount of accrued interest excluded from the disclosed amortized cost table is $323 million . Total December 31, 2020 2019 2018 2017 2016 2015 Prior Amount % No-FICO ® s 1,760 1,151 530 501 247 128 26 4,343 13.1% <540 1,789 1,370 913 454 263 186 90 5,065 15.3% 540-599 4,269 3,005 1,736 673 423 264 96 10,466 31.7% 600-639 2,759 1,838 990 335 230 126 47 6,325 19.1% >640 (a) 4,040 1,411 810 265 200 124 33 6,883 20.8% Total (b) $ 14,617 $ 8,775 $ 4,979 $ 2,228 $ 1,363 $ 828 $ 292 $ 33,082 100.0% (a) As of December 31, 2020, loans with FICO score of 640 were included in the 600-639 category. (b) The amount of accrued interest excluded from the disclosed amortized cost table is $416 million . Troubled Debt Restructurings In certain circumstances, the Company modifies the terms of its finance receivables to financially troubled borrowers. Modifications may include a temporary reduction in monthly payment, reduction in interest rate, an extension of the maturity date, rescheduling of future cash flows, or a combination thereof. A modification of finance receivable terms is considered a TDR if the Company grants a concession to a borrower for economic or legal reasons related to the debtor’s financial difficulties that would not otherwise have been considered. The purchased receivables portfolio - credit deteriorated, operating and finance leases, and loans held for sale are excluded from the scope of the applicable guidance. The Company’s TDR balance as of September 30, 2021 and December 31, 2020 primarily consisted of loans that had been deferred or modified to receive a temporary reduction in monthly payment. As of September 30, 2021 and December 31, 2020, there were no receivables from dealers classified as a TDR. For loans not classified as TDRs, the Company generally estimates an appropriate allowance for credit losses based on delinquency status, the Company’s historical loss experience, estimated values of underlying collateral, and various economic factors. Once a loan has been classified as a TDR, it is generally assessed for impairment based on the present value of expected future cash flows discounted at the loan’s original effective interest rate considering available evidence. For loans that are considered collateral-dependent, such as certain bankruptcy modifications, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. A loan that has been classified as a TDR remains so until the loan is liquidated through payoff or charge-off. The recognition of interest income on TDR loans reflects management’s best estimate of the amount that is reasonably assured of collection and is consistent with the estimate of future cash flows used in the impairment measurement. Any accrued but unpaid interest is fully reserved through the recognition of additional impairment, if not expected to be collected. The table below presents the Company’s amortized cost of TDRs as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Retail Installment Contracts Amortized Cost (including accrued interest) (a) $ 3,980,920 $ 4,011,780 Impairment (1,297,841) (1,314,170) Amortized cost including accrued interest, net of impairment $ 2,683,079 $ 2,697,610 (a) As of September 30, 2021, this balance excludes $56.2 million of collateral-dependent bankruptcy TDRs that have been written down by $8.9 million to fair value less cost to sell. As of December 31, 2020, this balance excludes $67.9 million of collateral-dependent bankruptcy TDRs that have been written down by $21.4 million to fair value less cost to sell. A summary of the amortized cost of the Company’s delinquent TDRs at September 30, 2021 and December 31, 2020 is as follows: September 30, 2021 December 31, 2020 Retail Installment Contracts 30-59 days past due $ 744,637 $ 637,560 Delinquent balance over 59 days 381,840 344,776 Total delinquent TDRs $ 1,126,477 $ 982,336 Average amortized cost and interest income recognized on TDR loans are as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Retail Installment Contracts Retail Installment Contracts Average amortized cost (including accrued interest) $ 4,142,089 $ 3,960,119 $ 4,203,685 $ 3,802,823 Interest income recognized 212,073 165,637 635,188 457,642 The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs that occurred for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Retail Installment Contracts Retail Installment Contracts Amortized cost (including accrued interest) before TDR $ 219,898 $ 317,455 $ 1,326,077 $ 1,399,813 Amortized cost (including accrued interest) after TDR (a) 220,679 319,027 1,333,257 1,417,480 Number of contracts (not in thousands) 12,063 14,620 67,354 69,786 (a) excluding collateral-dependent bankruptcy TDRs A TDR is considered to be in default at charge-off. For retail installment contracts, charge-off is at the earlier of the date of repossession or 120 days past due. Loan restructurings accounted for as TDRs within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2021 and 2020 are summarized in the following table: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Retail Installment Contracts Retail Installment Contracts Amortized cost (including accrued interest) in TDRs that subsequently defaulted (a)` $ 91,260 $ 83,002 $ 283,914 $ 183,871 Number of contracts (not in thousands) 4,724 4,379 14,496 10,467 (a) For TDR modifications and TDR modifications that subsequently default, the allowance methodology remains unchanged; however, the transition rates of the TDR loans are adjusted to reflect the respective risks. |
Leases (SC as Lessor)
Leases (SC as Lessor) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases (SC as Lessor) | Leases (SC as Lessor) The Company originates operating and finance leases, which are separately accounted for and recorded on the Company’s condensed consolidated balance sheets. Operating leases are reported as leased vehicles, net, while finance leases are included in finance receivables held for investment, net. For modified or extended leases, income continues to accrue during the extension period and remaining lease payments are recorded on a straight-line basis over the modified lease term. Beginning in the second quarter of 2021, the Company agreed to provide SBNA with origination support services in connection with the processing, underwriting and purchase of vehicle leases, primarily from Stellantis dealers, that are funded and owned by SBNA. In addition, the Company has agreed to perform the servicing for any leases originated on SBNA's behalf. Refer to Note 15 – “Related Party Transactions" for additional information. Operating Leases Leased vehicles, net, which is comprised of leases originated under the MPLFA, consisted of the following as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Leased vehicles $ 20,032,832 $ 22,056,063 Less: accumulated depreciation (3,920,416) (4,796,595) Depreciated net capitalized cost 16,112,416 17,259,468 Manufacturer subvention payments, net of accretion (700,783) (934,381) Origination fees and other costs 117,977 66,020 Net book value $ 15,529,610 $ 16,391,107 The following summarizes the maturity analysis of lease payments due to the Company, as lessor, under operating leases as of September 30, 2021: Remainder of 2021 $ 910,739 2022 2,101,818 2023 1,363,807 2024 286,598 2025 25,093 Thereafter 1,295 Total $ 4,689,350 Finance Leases Certain leases originated by the Company are accounted for as direct financing leases, as the contractual residual values are nominal amounts. Finance lease receivables, net consisted of the following as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Gross investment in finance leases $ 33,498 $ 34,461 Origination fees and other 283 289 Less: unearned income (8,990) (8,311) Net investment in finance leases before allowance 24,791 26,439 Less: allowance for lease losses (3,554) (3,999) Net investment in finance leases $ 21,237 $ 22,440 The following summarizes the maturity analysis of lease payments due to the Company, as lessor, under finance leases as of September 30, 2021: Remainder of 2021 $ 2,688 2022 10,275 2023 8,547 2024 6,509 2025 4,054 Thereafter 1,425 Total $ 33,498 |
Leases (SC as Lessor) | Leases (SC as Lessor) The Company originates operating and finance leases, which are separately accounted for and recorded on the Company’s condensed consolidated balance sheets. Operating leases are reported as leased vehicles, net, while finance leases are included in finance receivables held for investment, net. For modified or extended leases, income continues to accrue during the extension period and remaining lease payments are recorded on a straight-line basis over the modified lease term. Beginning in the second quarter of 2021, the Company agreed to provide SBNA with origination support services in connection with the processing, underwriting and purchase of vehicle leases, primarily from Stellantis dealers, that are funded and owned by SBNA. In addition, the Company has agreed to perform the servicing for any leases originated on SBNA's behalf. Refer to Note 15 – “Related Party Transactions" for additional information. Operating Leases Leased vehicles, net, which is comprised of leases originated under the MPLFA, consisted of the following as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Leased vehicles $ 20,032,832 $ 22,056,063 Less: accumulated depreciation (3,920,416) (4,796,595) Depreciated net capitalized cost 16,112,416 17,259,468 Manufacturer subvention payments, net of accretion (700,783) (934,381) Origination fees and other costs 117,977 66,020 Net book value $ 15,529,610 $ 16,391,107 The following summarizes the maturity analysis of lease payments due to the Company, as lessor, under operating leases as of September 30, 2021: Remainder of 2021 $ 910,739 2022 2,101,818 2023 1,363,807 2024 286,598 2025 25,093 Thereafter 1,295 Total $ 4,689,350 Finance Leases Certain leases originated by the Company are accounted for as direct financing leases, as the contractual residual values are nominal amounts. Finance lease receivables, net consisted of the following as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Gross investment in finance leases $ 33,498 $ 34,461 Origination fees and other 283 289 Less: unearned income (8,990) (8,311) Net investment in finance leases before allowance 24,791 26,439 Less: allowance for lease losses (3,554) (3,999) Net investment in finance leases $ 21,237 $ 22,440 The following summarizes the maturity analysis of lease payments due to the Company, as lessor, under finance leases as of September 30, 2021: Remainder of 2021 $ 2,688 2022 10,275 2023 8,547 2024 6,509 2025 4,054 Thereafter 1,425 Total $ 33,498 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2021 | |
Other Assets, Leases And Investments [Abstract] | |
Other Assets | Other Assets Other assets were comprised as follows: September 30, 2021 December 31, 2020 Vehicles (a) $ 269,627 $ 311,557 Manufacturer subvention payments receivable (b) 29,361 57,996 Upfront fee (b) 47,015 69,286 Derivative assets at fair value (c) 13,314 4,740 Derivative - collateral 23,037 92,132 Operating leases (Right-of-use-assets) 61,590 46,441 Available-for-sale debt securities 90,688 95,654 Held-to-maturity debt securities (d) 101,874 44,875 Equity securities not held for trading 2,671 1,380 Prepaids 35,152 45,667 Accounts receivable 28,737 34,607 Federal and State tax receivable 76,113 99,666 Other 32,418 68,725 Other assets $ 811,597 $ 972,726 (a) Includes vehicles recovered through repossession as well as vehicles recovered due to lease terminations. (b) These amounts relate to the MPLFA . The Company paid a $150,000 upfront fee upon the May 2013 inception of the MPLFA . The fee is being amortized into finance and other interest income over a ten-year term. In addition, in June 2019, in connection with the execution of an amendment to the MPLFA , the Company paid a $60,000 upfront fee to Stellantis. This fee is being amortized into finance and other interest income over the remaining term of the MPLFA . (c) Derivative assets at fair value represent the gross amount of derivatives presented in the condensed consolidated financial statements. Refer to Note 9 - "Derivative Financial Instruments" to these Condensed Consolidated Financial Statements for the detail of these amounts. (d) Held-to-maturity debt securities includes accrued interest as of September 30, 2021. Operating Leases (SC as Lessee) The Company has entered into various operating leases, primarily for office space. Operating leases are included within other assets other liabilities Most of our real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one year to 15 years or more. The exercise of lease renewal options is at our sole discretion. The Company does not include any of the renewal options in the lease term as it is not reasonably certain that these options will be exercised. Supplemental information relating to these operating leases is as follows: September 30, 2021 December 31, 2020 Operating leases-right of use assets $ 61,590 $ 46,441 Other liabilities 77,854 64,927 Weighted average lease term 6.2 5.5 Weighted average discount rate 2.7 % 3.4 % Lease expense i ncurred totaled $3,084 and $3,479 for the three months ended September 30, 2021 and 2020, respectively, and $9,577 and $10,586 for the nine months ended September 30, 2021 and 2020, respectively and is included within “other operating costs” in the income statement. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Cash paid for amounts included in the measurement of operating lease liabilities was $12,863 and $12,947 during the nine months ended September 30, 2021 and 2020, respectively . The maturity of lease liabilities at September 30, 2021 are as follows: September 30, 2021 2021 $ 4,078 2022 17,409 2023 14,343 2024 14,313 2025 14,397 Thereafter 18,029 Total $ 82,569 Less: Interest (4,715) Present value of lease liabilities $ 77,854 Available-for-sale and Held-to-maturity debt securities Debt securities expected to be held for an indefinite period of time are classified as AFS and are carried at fair value, with temporary unrealized gains and losses reported as a component of accumulated other comprehensive income within stockholder's equity, net of estimated income taxes. These securities are used to satisfy collateral requirements for our derivative financial instruments. Debt securities that the Company has the positive intent and ability to hold until maturity are classified as HTM securities. HTM securities are reported at cost and adjusted for payments, charge-offs, amortization of premium and accretion of discount. These securities are used to meet risk retention requirements under regulatory rules. Realized gains and losses on sales of investment securities are recognized on the trade date and are determined using the specific identification method and are included in earnings within Investment gain (losses) on sale of securities. Unamortized premiums and discounts are recognized in interest income over the estimated life of the security using the interest method. The following tables present the amortized cost, gross unrealized gains and losses and approximate fair values of debt securities available-for-sale and held-to-maturity debt securities: September 30, 2021 Amortized cost (before unrealized gains / losses) Gross Unrealized gain Gross Unrealized loss Fair value Available-for-sale debt securities (US Treasury securities) $ 89,437 $ 1,251 $ — $ 90,688 Held-to-maturity debt securities (Asset-Backed Notes) $ 101,815 $ 634 $ — $ 102,449 Contractual Maturities The contractual maturities of available-for-sale and held-to-maturity debt instruments are summarized in the following table: September 30, 2021 Available-for-sale debt securities Held-to-maturity debt securities Amortized cost Fair value Amortized cost Fair value Due within one year $ 66,924 $ 67,650 $ — $ — Due after one year but within 5 years 22,513 23,038 48,200 48,491 Due after 5 year but within 10 years — — 53,615 53,958 Total $ 89,437 $ 90,688 $ 101,815 $ 102,449 There w ere no transfers of securities between available-for-sale and held-to-maturity periods ended September 30, 2021 or December 31, 2020. The Company did not record an allowance for credit-related losses on available-for-sale and held-to-maturity securities at September 30, 2021 or December 31, 2020. As discussed in Part II, Item 8 – Financial Statements and Supplementary Data (Note 1) in the 2020 Annual Report on Form 10-K, there is no reserve for securities for which management has an expectation that nonpayment of the amortized cost basis is zero. Other Investments |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entity Disclosure [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company transfers retail installment contracts and vehicle leases into newly formed Trusts that then issue one or more classes of notes payable backed by the collateral. The Company’s continuing involvement with these Trusts is in the form of servicing the assets and, generally, through holding residual interests in the Trusts. The Trusts are considered VIEs under GAAP and the Company may or may not consolidate these VIEs on the condensed consolidated balance sheets. For further description of the Company’s securitization activities, involvement with VIEs and accounting policies regarding consolidation of VIEs, see Part II, Item 8 – Financial Statements and Supplementary Data (Note 7) in the 2020 Annual Report on Form 10-K. On-balance sheet variable interest entities The assets of consolidated VIEs, presented based upon the legal transfer of the underlying assets in order to reflect legal ownership, that can be used only to settle obligations of the consolidated VIE and the liabilities of these entities for which creditors (or beneficial interest holders) do not have recourse to the Company’s general credit were as follows: September 30, 2021 December 31, 2020 Assets Restricted cash $ 1,682,654 $ 1,737,021 Finance receivables held for sale, net 113,313 581,938 Finance receivables held for investment, net 21,785,308 22,572,549 Leased vehicles, net 15,529,610 16,391,107 Various other assets 706,130 791,306 Total assets $ 39,817,015 $ 42,073,921 Liabilities Notes payable $ 30,632,558 $ 31,700,709 Various other liabilities 107,743 84,922 Total liabilities $ 30,740,301 $ 31,785,631 Certain amounts shown above are greater than the amounts shown in the corresponding line items in the accompanying condensed consolidated balance sheets due to intercompany eliminations between the VIEs and other entities consolidated by the Company. For example, for most of its securitizations, the Company retains one or more of the lowest tranches of bonds. Rather than showing investment in bonds as an asset and the associated debt as a liability, these amounts are eliminated in consolidation as required by GAAP. The Company retains servicing rights for receivables transferred to the Trusts and receives a monthly servicing fee on the outstanding principal balance. Supplemental fees, such as late charges, for servicing the receivables are reflected in fees, commissions and other income. As of September 30, 2021 and December 31, 2020, the Company was servicing $26,079,950 and $27,658,182, respectively, of gross retail installment contracts that had been transferred to consolidated Trusts. The remainder of the Company’s retail installment contracts remain unpledged. A summary of the cash flows received from consolidated securitization Trusts during the three and nine months ended September 30, 2021 and 2020, is as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Assets securitized $ 7,095,782 $ 5,282,901 $ 18,457,441 $ 15,845,707 Net proceeds from new securitizations (a) $ 6,591,786 $ 4,662,211 $ 16,168,394 $ 11,470,857 Net proceeds from retained bonds — 1,293 195,967 57,286 Cash received for servicing fees (b) 228,194 242,245 686,789 735,533 Net distributions from Trusts (b) 1,391,970 1,173,276 4,435,605 2,730,657 Total cash received from Trusts $ 8,211,950 $ 6,079,025 $ 21,486,755 $ 14,994,333 (a) Includes additional advances on existing securitizations. (b) These amounts are not reflected in the accompanying condensed consolidated statements of cash flows because these cash flows are intra-company and eliminated in consolidation. Off-balance sheet variable interest entities During the nine months ended September 30, 2021 and 2020, the Compa ny sold $1,891,278 and $1,148,587 respectively, of gross retail installment contracts to third party investors in off-balance sheet securitizations for a gain of $7,233 and a loss of $40,553, respectively. Gains and losses are recorded in investment gains, net, in the accompanying condensed consolidated statements of income. As of September 30, 2021 and December 31, 2020 , the Company was servicing $2,754,314 and $2,226,786, respe ctively, of gross retail installment contracts that have been sold in off-balance sheet securitizations and were subject to an optional clean-up call. The portfolio was comprised as follows: September 30, 2021 December 31, 2020 Related party SPAIN serviced securitizations $ 687,158 $ 1,214,644 Third party SCART serviced securitizations 2,067,156 929,429 Third party CCAP serviced securitizations — 82,713 Total serviced for others portfolio $ 2,754,314 $ 2,226,786 Other than repurchases of sold assets due to standard representations and warranties, the Company h as no exp osure to loss as a result of its involvement with these VIEs. A summary of the cash flows received from off-balance sheet securitization Trusts for the three and nine months ended September 30, 2021 and 2020, is as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Receivables securitized (a) $ — $ 636,301 $ 1,891,278 $ 1,148,587 Net proceeds from new securitizations — 592,455 1,779,532 1,052,541 Cash received for servicing fees 8,041 6,598 24,061 17,856 Total cash received from securitization trusts 8,041 599,053 $ 1,803,593 $ 1,070,397 (a) Represents the unpaid principal balance at the time of original securitization. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total borrowings and other debt obligations as of September 30, 2021 and December 31, 2020 consists of: September 30, 2021 December 31, 2020 Notes Payable — Facilities with Third Parties $ — $ 4,159,955 Notes Payable — Secured Structured Financings 28,831,858 26,177,401 Notes Payable — Facilities with Santander and Related Subsidiaries (a) 9,600,000 10,801,318 $ 38,431,858 $ 41,138,674 Notes Payable - Credit Facilities The following table presents information regarding the Company’s credit facilities as of September 30, 2021 and December 31, 2020: September 30, 2021 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line June 2023 $ — $ 500,000 —% $ 367,404 $ — Warehouse line March 2023 — 1,250,000 —% 246,480 1 Warehouse line October 2022 — 1,500,000 —% 121,046 — Warehouse line October 2022 — 3,500,000 —% 133,429 — Warehouse line October 2022 — 500,000 —% 13,409 500 Warehouse line October 2022 — 2,100,000 —% 175,624 64 Warehouse line January 2023 — 1,000,000 —% 477,840 — Warehouse line November 2022 — 500,000 —% 279,703 — Warehouse line July 2022 — 900,000 —% — — Total facilities with third parties — 11,750,000 1,814,935 565 Facilities with Santander and related subsidiaries: Promissory Note December 2021 250,000 250,000 3.58% — — Promissory Note December 2022 250,000 250,000 3.82% — — Promissory Note December 2023 250,000 250,000 5.07% — — Promissory Note December 2022 250,000 250,000 4.83% — — Promissory Note May 2023 350,000 350,000 3.67% — — Promissory Note November 2022 400,000 400,000 2.90% — — Promissory Note April 2023 450,000 450,000 5.92% — — Promissory Note June 2022 500,000 500,000 3.19% — — Promissory Note July 2024 500,000 500,000 3.77% — — Promissory Note March 2022 650,000 650,000 4.06% — — Promissory Note September 2023 750,000 750,000 3.17% — — Promissory Note May 2025 1,000,000 1,000,000 3.86% — — Promissory Note June 2022 2,000,000 2,000,000 2.03% — — Promissory Note September 2022 2,000,000 2,000,000 1.01% — — Line of credit July 2024 — 500,000 2.08% — — Line of credit March 2023 — 2,500,000 3.28% — — Total facilities with Santander and related subsidiaries 9,600,000 12,600,000 — — Total revolving credit facilities $ 9,600,000 $ 24,350,000 $ 1,814,935 $ 565 (a) In 2017, the Company entered into an interest rate swap to hedge the interest rate risk on this fixed rate debt. This derivative was designated as fair value hedge at inception. This derivative was later terminated and the unamortized fair value hedge adjustment as of September 30, 2021 and December 31, 2020 was zero and $1.3 million, respectively, the amortization of which reduced interest expense over the life of the fixed rate debt. December 31, 2020 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line August 2022 $ — $ 500,000 1.50% $ 159,348 $ — Warehouse line March 2022 942,845 1,250,000 1.34% 1,621,206 1 Warehouse line October 2022 1,000,600 1,500,000 1.85% 639,875 — Warehouse line October 2022 441,143 3,500,000 3.45% 2,057,758 — Warehouse line October 2022 168,300 500,000 3.07% 243,649 1,201 Warehouse line October 2022 845,800 2,100,000 3.29% 1,156,885 — Warehouse line January 2022 415,700 1,000,000 1.81% 595,518 — Warehouse line November 2022 177,600 500,000 1.18% 371,959 — Warehouse line July 2022 — 900,000 1.46% — 1,684 Repurchase facility January 2021 167,967 167,967 1.64% 217,200 — Total facilities with third parties 4,159,955 11,917,967 7,063,398 2,886 Facilities with Santander and related subsidiaries: Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note December 2023 250,000 250,000 5.25% — — Promissory Note December 2022 250,000 250,000 5.00% — — Promissory Note May 2021 250,000 250,000 2.25% — — Promissory Note March 2021 300,000 300,000 3.95% — — Promissory Note May 2023 350,000 350,000 3.80% — — Promissory Note November 2022 400,000 400,000 3.00% — — Promissory Note April 2023 450,000 450,000 6.13% — — Promissory Note June 2022 500,000 500,000 3.30% — — Promissory Note July 2024 500,000 500,000 3.90% — — Promissory Note March 2022 650,000 650,000 4.20% — — Promissory Note August 2021 650,000 650,000 3.44% — — Promissory Note September 2023 750,000 750,000 3.27% — — Promissory Note May 2025 1,000,000 1,000,000 3.99% — — Promissory Note June 2022 2,000,000 2,000,000 1.40% — — Promissory Note September 2022 2,000,000 2,000,000 1.04% — — Line of credit July 2021 — 500,000 2.08% — — Line of credit March 2022 — 2,500,000 3.28% — — Total facilities with Santander and related subsidiaries 10,800,000 13,800,000 — — Total revolving credit facilities 14,959,955 25,717,967 7,063,398 2,886 Notes Payable - Facilities with Third Parties The warehouse lines and repurchase facilities are fully collateralized by a designated portion of the Company’s retail installment contracts (Note 2), leased vehicles (Note 4), securitization notes payables and residuals retained by the Company. Facilities with Santander and Related Subsidiaries Lines of Credit SHUSA provides the Compa ny with $500,000 of committed revolving credit and $2,500,000 of contin gent liquidity that can be drawn on an unsecured basis. Promissory Notes SHUSA provides the Company wi th $5,600,000 of unsecured promissory notes. Santander provides the Company with $4,000,000 o f unsecured promissory notes. Notes Payable - Secured Structured Financings The following table presents information regarding secured structured financings as of September 30, 2021 and December 31, 2020: September 30, 2021 Estimated Maturity Date(s) at Issuance Balance Initial Note Amounts Issued (d) Initial Weighted Average Interest Rate Collateral (b) Restricted Cash 2017 Securitizations July 2022 - September 2024 118,293 3,889,470 1.35% - 2.52% 564,070 90,895 2018 Securitizations February 2024 - April 2026 1,606,743 11,000,280 2.41% - 3.42% 2,510,723 264,577 2019 Securitizations May 2024 - February 2027 4,249,645 11,924,720 2.08% - 3.34% 5,788,406 466,789 2020 Securitizations November 2024 - May 2028 5,629,703 10,028,425 0.60% - 2.73% 7,256,352 364,410 2021 Securitizations November 2025 - March 2029 13,052,747 14,986,600 0.48% - 0.65% 15,283,626 479,199 Public Securitizations (a) 24,657,131 51,829,495 31,403,177 1,665,870 2013 Private issuances July 2024 - September 2024 230,404 1,537,025 1.28% 1,015,024 751 2018 Private issuances June 2022 - April 2024 1,452,711 2,200,002 2.42% - 3.17% 2,111,645 — 2019 Private issuance September 2022 - November 2026 1,517,437 3,524,536 2.45% - 3.90% 2,300,073 10,566 2020 Private issuance April 2024 - December 2027 974,175 1,500,000 1.29% - 2.68% 1,330,694 4,902 Privately issued amortizing notes (c) 4,174,727 8,761,563 6,757,436 16,219 Total secured structured financings $ 28,831,858 $ 60,591,058 $ 38,160,613 $ 1,682,089 (a) Securitizations executed under Rule 144A of the Securities Act are included within this balance. (b) Secured structured financings may be collateralized by the Company’s collateral overages of other issuances. (c) All privately issued amortizing notes issued in 2014 through 2017 were paid in full. (d) Excludes securitizations that no longer have outstanding debt and excludes any incremental borrowings. December 31, 2020 Estimated Maturity Date(s) at Issuance Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Collateral Restricted Cash 2016 Securitizations August 2022 - March 2024 $ 259,078 $ 2,519,810 1.63% - 2.34% $ 354,985 $ 85,041 2017 Securitizations July 2022 - September 2024 1,049,867 8,262,940 1.35% - 2.52% 1,661,845 211,606 2018 Securitizations May 2022 - April 2026 2,723,099 12,039,840 2.41% - 3.42% 4,130,936 376,246 2019 Securitizations May 2024 - February 2027 6,653,226 11,924,720 2.08% - 3.34% 8,582,241 488,546 2020 Securitizations November 2024 - May 2028 8,256,890 10,028,425 0.60% - 2.73% 10,292,570 548,912 Public Securitizations 18,942,160 44,775,735 25,022,577 1,710,351 2013 Private issuances July 2024 - September 2024 777,210 1,537,025 1.28% 1,843,443 751 2018 Private issuances June 2022 - April 2024 2,768,145 4,186,002 2.42%- 3.53% 4,223,567 7,675 2019 Private issuance September 2022 - November 2026 2,584,974 3,524,536 2.45% - 3.90% 3,632,833 10,457 2020 Private issuance April 2024 - December 2027 1,104,912 1,500,000 1.29% - 2.68% 1,532,280 4,902 Privately issued amortizing notes 7,235,241 10,747,563 11,232,123 23,785 Total secured structured financings $ 26,177,401 $ 55,523,298 $ 36,254,700 $ 1,734,136 Most of the Company’s secured structured financings are in the form of public, SEC-registered securitizations. The Company also executes private securitizations under Rule 144A of the Securities Act and periodically issues private term amortizing notes, which are structured similarly to securitizations but are acquired by banks and conduits. The Company’s securitiz ations and private issuances are collateralized by vehicle retail installment contracts and loans or leases. As of September 30, 2021 and December 31, 2020 , the Company had private issuances of notes backed by vehicle leases totali ng $6.6 billion and $8.7 billion, respectively. Unamortized debt issuance costs are amortized as interest expense over the terms of the related notes payable using the effective interest method and are classified as a discount to the related recorded debt balance. Amortization of debt issuance costs were $13,213 and $10,265 for the three months ended September 30, 2021 and 2020, respectively, and $37,100 and $28,301 for the nine months ended September 30, 2021 and 2020, respectively. For securitizations, the term takes into consideration the expected execution of the contractual call option, if applicable. Amortization of premium or accretion of discount on notes payable is also included in interest expense using the effective interest method over the estimated remaining life of the notes. Total interest expense on secured structured financings for the three months ended September 30, 2021 and 2020 was $103,511 and $150,734, respectively, and for the nine months ended September 30, 2021 and 2020 was $342,168 and $522,266, respec tively. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity In August, the Company and SHUSA entered into a definitive agreement whereby SHUSA will acquire the remaining shares of the Company for $41.50 per share in cash, which represents a total equity value of $12.7 billion. Please refer to Note 1 - “ Description of Business, Basis of Presentation, and Accounting Policies ” to these Condensed Consolidated Financial Statements for additional information related to the agreement. Share Repurchases In June 2019, the Company announced that the Board had authorized purchases by the Company of up to $1.1 billion , excluding commissions, of its outstanding common stock effective from the third quarter of 2019 through the end of the second quarter of 2020. During the three months ended March 31, 2020, the Company purchased shares of its common stock through a modified Dutch Auction Tender Offer, and extended the share repurchase program through the end of the third quarter of 2020. On July 31, 2020, the Company announced that SHUSA’s request for certain exceptions to the Federal Reserve Board’s interim policy (the “Interim Policy”), prohibiting share repurchases (other than repurchases relating to issuances of common stock under employee stock ownership plans) and limiting dividends paid by certain CCAR institutions to the average trailing four quarters of net income, had been approved. Such exception approval permitted the Company to continue its share repurchase program through the end of the third quarter of 2020. On August 10, 2020, the Company announced that it had substantially exhausted the amount of shares the Company was permitted to repurchase under the exception approval and that the Company expected to repurchase an immaterial number of shares remaining under the exception approval. After substantially exhausting its share repurchase authorization on August 10, 2020, and through the end of the second quarter of 2021, the Company was only permitted to repurchase shares of the Company’s common stock equal to the amount of share issuances related to the Company’s expensed employee compensation. The Company does not presently have permission to repurchase any shares of the Company’s common stock. Please find below the details of the Company's tender offer and other share repurchase programs for the three and nine months ended September 30, 2021 and 2020 : Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Tender offer (a): Number of shares purchased — — — 17,514,707 Average price per share $ — $ — $ — $ 26.00 Cost of shares purchased (b) $ — $ — $ — $ 455,382 Other share repurchases: Number of shares purchased — 10,198,800 357,747 15,956,561 Average price per share $ — $ 21.91 $ 26.46 $ 20.00 Cost of shares purchased (b) $ — $ 223,485 $ 9,468 $ 319,075 Total number of shares purchased — 10,198,800 357,747 33,471,268 Average price per share $ — $ 21.91 $ 26.46 $ 23.14 Total cost of shares purchased (b) $ — $ 223,485 $ 9,468 $ 774,457 (a) During the three months ended March 31, 2020, the Company purchased shares of its common stock through a modified Dutch Auction Tender Offer. (b) Cost of shares exclude commissions Treasury Stock had 57,425,382 and 57,067,635 shares of treasury stock outstanding, with a co st of $1,311,339 and $1,301,864 as of September 30, 2021 and December 31, 2020, respectively. No shares were withheld to cover income taxes related to stock issued in connection with employee incentive compensation plans for the nine months ended September 30, 2021. The value of the treasury stock is included within the add itional paid-in-capital. Accumulated Other Comprehensive Income (Loss) A summary of changes in accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2021 and 2020 is as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance, unrealized gains (losses) $ (36,855) $ (63,705) $ (50,566) $ (26,693) Other comprehensive income (loss) before reclassifications (gross) 414 94 2,603 (43,212) Amounts (gross) reclassified out of accumulated other comprehensive income (loss) 5,247 6,729 16,769 13,023 Ending balance, unrealized gains (losses) $ (31,194) $ (56,882) $ (31,194) $ (56,882) Amounts (gross) reclassified out of accumulated other comprehensive income (loss) during the three and nine months ended September 30, 2021 and 2020 consist of the following: Three Months Ended Nine Months Ended Income statement line item Reclassification September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cash flow hedges $ 6,946 $ 8,939 $ 22,254 $ 17,260 Interest expense Tax benefit (1,699) (2,210) (5,485) (4,237) Net of tax $ 5,247 $ 6,729 $ 16,769 $ 13,023 Dividends |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments such as interest rate swaps, interest rate caps and the corresponding options written in order to manage the Company’s exposure to changing interest rates. The Company uses both derivatives that qualify for hedge accounting treatment and economic hedges. The underlying notional amounts of these derivative financial instruments at September 30, 2021 and December 31, 2020, are as follows: September 30, 2021 December 31, 2020 Notional Asset Liability Notional Asset Liability Interest rate swap agreements designated as cash flow hedges $ — $ — $ — $ 2,450,000 $ 123 $ (70,589) Interest rate swap agreements not designated as hedges 250,000 — (8,085) 250,000 — (12,934) Interest rate cap agreements 7,649,971 13,314 — 10,199,134 4,617 — Options for interest rate cap agreements 7,649,971 — (13,314) 10,199,134 — (4,617) The aggregate fair value of the interest rate swap agreements is included on the Company’s consolidated balance sheets in other assets and other liabilities, as appropriate. The aggregate fair value of interest rate cap agreements are included in other assets and the related options in other liabilities on the Company’s consolidated balance sheets. See Note 10 - “ Fair Value of Financial Instruments ” to these Condensed Consolidated Financial Statements for additional disclosure of fair value and balance sheet location of the Company’s derivative financial instruments. The Company enters into legally enforceable master netting agreements that reduce risk by permitting netting of transactions, such as derivatives and collateral posting, with the same counterparty on the occurrence of certain events. A master netting agreement allows two counterparties the ability to net-settle amounts under all contracts, including any related collateral posted, through a single payment. The right to offset and certain terms regarding the collateral process, such as valuation, credit events and settlement, are contained in ISDA master agreements. The Company has elected to present derivative balances on a gross basis even if the derivative is subject to a legally enforceable master netting (ISDA) agreement. Collateral that is received or pledged for these transactions is disclosed within the “Gross Amounts Not Offset in the Consolidated Balance Sheet” section of the tables below. Information on the offsetting of derivative assets and derivative liabilities due to the right of offset was as follows, as of September 30, 2021 and December 31, 2020: Gross Amounts Not Offset in the Assets Presented in the Collateral Net September 30, 2021 Interest rate caps - Santander and affiliates $ 2,334 $ (2,334) $ — Interest rate caps - third party 10,980 (10,980) — Total derivatives subject to a master netting arrangement or similar arrangement 13,314 (13,314) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 13,314 $ (13,314) $ — Total financial assets $ 13,314 $ (13,314) $ — December 31, 2020 Interest rate swaps - third party (b) $ 123 $ (123) $ — Interest rate caps - Santander and affiliates 463 (463) — Interest rate caps - third party 4,154 (4,154) — Total derivatives subject to a master netting arrangement or similar arrangement 4,740 (4,740) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 4,740 $ (4,740) $ — Total financial assets $ 4,740 $ (4,740) $ — (a) Collateral received includes cash, cash equivalents, initial margin and other financial instruments. Cash collateral received is reported in Other liabilities in the consolidated balance sheet. Financial instruments that are pledged to the Company are not reflected in the accompanying balance sheet since the Company does not control or have the ability of rehypothecation of these instruments. In certain instances, the counter party is over-collateralized since the actual amount of collateral received exceeds the associated financial asset. As a result, the actual amount of collateral received that is reported may be greater than the amount shown in the table above. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. Gross Amounts Not Offset in the Liabilities Presented in the Collateral Net September 30, 2021 Interest rate swaps - third party (b) $ 8,085 $ (8,085) $ — Interest rate caps - Santander and affiliates 2,334 (2,334) — Interest rate caps - third party 10,980 (4,885) 6,095 Total derivatives subject to a master netting arrangement or similar arrangement 21,399 (15,304) 6,095 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 21,399 $ (15,304) $ 6,095 Total financial liabilities $ 21,399 $ (15,304) $ 6,095 December 31, 2020 Interest rate swaps - third party $ 83,523 $ (83,523) $ — Interest rate caps - Santander and affiliates 463 (463) — Interest rate caps - third party 4,154 (4,154) — Total derivatives subject to a master netting arrangement or similar arrangement 88,140 (88,140) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 88,140 $ (88,140) $ — Total financial liabilities $ 88,140 $ (88,140) $ — (a) Collateral pledged includes cash, cash equivalents, initial margin and other financial instruments. These balances are reported in Other assets in the consolidated balance sheet. In certain instances, the Company is over-collateralized since the actual amount of collateral pledged exceeds the associated financial liability. As a result, the actual amount of collateral pledged that is reported in Other assets may be greater than the amount shown in the table above. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. During 2018, 2019 and 2020, the Company entered into interest rate swap agreements with an aggregate notional amount of $2.2 billion. The interest rate swaps were to be used to hedge the Company’s variable rate debt and had maturity dates ranging from two relationships and terminated the swaps resulting in a fair value adjustment of $6.5 million recorded as a reduction to interest expense. Amounts previously recorded in accumulated other comprehensive income/loss related to these interest rate swaps, totaling $50.6 million, are being reclassified into earnings over the term as the previously hedged cash flows impact earnings. For the terminated swaps, the Company reclassified $7.9 million previously recorded in accumulated other comprehensive income/loss into interest expense during the quarter ending September 30, 2021. The gross gains (losses) reclassified from accumulated other comprehensive income (loss) to net income, are included as components of interest expense. The impacts on the consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, 2021 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 1,023 $ (6,946) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 143 Three Months Ended September 30, 2020 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 256 $ (8,939) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 567 Nine Months Ended September 30, 2021 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 4,687 $ (22,254) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 113 Nine Months Ended September 30, 2020 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ (59,405) $ (17,260) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 10,774 The Company estimates that approxima tely $24,259 of unrealized gains i ncluded in accumulated other comprehensive income (loss) will be reclassified to interest expense within the next twelve months. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurement requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs and also establishes a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities that can be accessed as of the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 inputs are those that are unobservable or not readily observable for the asset or liability and are used to measure fair value to the extent relevant observable inputs are not available. Financial Instruments Measured At Fair Value on a Recurring Basis The fo llowing tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020, and the level within the fair value hierarchy: Level 1 Level 2 Level 3 Balance at September 30, 2021 Level 1 Level 2 Level 3 Balance at December 31, 2020 Other assets: Trading interest rate caps (a) $ — $ 13,314 $ — $ 13,314 $ — $ 4,617 $ — $ 4,617 Cash flow hedging interest rate swaps (a) — — — $ — — 123 — $ 123 Available-for-sale-debt securities (b) — 90,688 — $ 90,688 — 95,654 — $ 95,654 Retail installment contracts (c)(d) — 3,774 2,396 $ 6,170 — — 5,614 $ 5,614 Other liabilities: Trading options for interest rate caps (a) — 13,314 — $ 13,314 — 4,617 — $ 4,617 Cash flow hedging interest rate swaps (a) — — — $ — — 70,589 — $ 70,589 Trading interest rate swaps (a) — 8,085 — $ 8,085 — 12,934 — $ 12,934 (a) The valuation is determined using widely accepted valuation techniques including a DCF on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurement of its derivatives. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and guarantees. The Company utilizes the exception in ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for instruments (Note 9). (b) The Company's AFS debt securities includes U.S. Treasury securities that are valued utilizing observable market quotes. The Company obtains vendor trading platform data (actual prices) from a number of live data sources, including active market makers and interdealer brokers and its securities are therefore, classified as Level 2. (c) The fair values of the retail installment contracts are estimated using a DCF model and are classified as Level 3. As of September 30, 2021, the Company had used the most recent purchase price as the fair value for certain loans and hence classified those retail installment contracts as Level 2. Changes in the fair value are recorded in investment gains (losses), net in the consolidated statement of income. (d) The aggregate fair value of retail installment contracts in non-accrual status, as of September 30, 2021 and December 31, 2020, is $541 a nd $1,129, respectively. Level 3 Rollforward for Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the changes in retail installment contracts held for investment balances classified as Level 3 balances for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance — beginning of year $ 2,841 $ 10,585 $ 5,614 $ 4,719 Additions / issuances 1,171 — 1,171 2,512 Transfer from level 2 (a) — — — 17,634 Net collection activities (1,616) (2,410) (4,389) (16,854) Gains recognized in earnings — 73 — 237 Balance — end of year $ 2,396 $ 8,248 $ 2,396 $ 8,248 (a) The Company transferred retail installment contracts from Level 2 to Level 3 during the three months ended March 31, 2020 because the fair value for these assets could not be determined by using readily observable inputs at March 31, 2020. There we re no other material transfers in or out of Level 3 during the three months ended September 30, 2020 and during the three and nine months ended September 30, 2021. Financial Instruments Measured At Fair Value on a Nonrecurring Basis The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at September 30, 2021 and December 31, 2020, respectively: Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Total Lower of cost or fair value expense Total Lower of cost or fair value expense Other assets — vehicles (a) $ 269,627 $ — $ 311,557 $ — Personal loans held for sale (b) — — 893,479 355,136 Retail installment contracts held for sale (c) 359,561 — 674,048 $ 7,385 Auto loans impaired due to bankruptcy (d) 204,594 — 191,785 — ( a) The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market levels of used car prices. (b) The estimated fair value for personal loans held for sale is calculated based on the lower of market participant view and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions. The lower of cost or fair value adjustment for personal loans held for sale includes customer default activity and adjustments related to the net change in the portfolio balance during the reporting period. On March 31, 2021, the Company sold the personal lending portfolio. Refer to Note 1 – “Description of Business, Basis of Presentation, and Accounting Principles” to these Condensed Consolidated Financial Statements for more information. (c) The estimated fair value is calculated based on a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including expected default rates, prepayment rates, recovery rates, and discount rates reflective of the cost of funds and appropriate rate of returns. (d) For loans that are considered collateral-dependent, such as certain bankruptcy loans, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. For the underlying collateral, the estimated fair value is obtained using historical auction rates and current market levels of used car prices. No additional lower of cost or fair value expense was recorded for the nine months ended September 30, 2021. Quantitative Information about Level 3 Fair Value Measurements The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at September 30, 2021 and December 31, 2020, respective ly: Financial Instruments Fair Value at September 30, 2021 Valuation Technique Unobservable Inputs Range (weighted average) (a) Financial Assets: Retail installment contracts held for investment $ 2,396 Discounted Cash Flow Discount Rate 7%-13% (9%) Default Rate 4%-10% (7%) Prepayment Rate 4%-15% (15%) Loss Severity Rate 50%-60% (56%) Retail installment contracts held for sale $ 359,561 Discounted Cash Flow Discount Rate 1% - 2% (2%) Default Rate 4% - 10% (7%) Prepayment Rate 15% - 20% (17%) Loss Severity Rate 50% - 55% (52%) (a) Weighted average was developed by weighting the associated relative unpaid principal balances. Financial Instruments Fair Value at December 31, 2020 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 5,614 Discounted Cash Flow Discount Rate 7%-11% Default Rate 4%-20% Prepayment Rate 15%-25% Loss Severity Rate 50%-60% Personal loans held for sale $ 893,479 Lower of Market or Income Approach Market Approach Market Participant View 60%-70% Income Approach Discount Rate 20%-30% Default Rate 35%-45% Net Principal & Interest Payment Rate 65%-75% Loss Severity Rate 90%-95% Retail installment contracts held for sale $ 674,048 Discounted Cash Flow Discount Rate 1.5% - 2.5% Default Rate 2% - 4% Prepayment Rate 10% - 20% Loss Severity Rate 50% - 60% Financial Instruments Disclosed, But Not Carried, At Fair Value The following tables present the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at September 30, 2021 and December 31, 2020, and the level within the fair value hierarchy: September 30, 2021 December 31, 2020 Carrying Estimated Level 1 Level 2 Level 3 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 2,106,405 $ 2,106,405 $ 2,106,405 $ — $ — $ 109,053 $ 109,053 $ 109,053 $ — $ — Finance receivables held for investment, net (b) 27,272,976 29,878,212 — 47,691 29,830,521 26,806,606 29,464,066 — — 29,464,066 Restricted cash (a) 2,248,667 2,248,667 2,248,667 — — 2,221,094 2,221,094 2,221,094 — — Investments in debt securities held to maturity (c) 101,815 102,449 — 102,449 — 44,841 45,606 — 45,606 — Total $ 31,729,863 $ 34,335,733 $ 4,355,072 $ 150,140 $ 29,830,521 $ 29,181,594 $ 31,839,819 $ 2,330,147 $ 45,606 $ 29,464,066 Liabilities: Notes Payable: Facilities with third parties (d) $ — $ — $ — $ — $ — $ 4,159,955 $ 4,159,955 $ — $ — $ 4,159,955 Secured structured financings (e) 28,831,858 29,089,183 — 24,644,581 4,444,602 26,177,401 26,673,970 — 18,291,898 8,382,072 Facilities with Santander and related subsidiaries (f) 9,600,000 9,798,720 — — 9,798,720 10,801,318 11,333,823 — — 11,333,823 Total $ 38,431,858 $ 38,887,903 $ — $ 24,644,581 $ 14,243,322 $ 41,138,674 $ 42,167,748 $ — $ 18,291,898 $ 23,875,850 (a) Cash and cash equivalents and restricted cash — The carrying amount of cash and cash equivalents, including restricted cash, is at an approximated fair value as the instruments mature within 90 days or less and bear interest at market rates. (b) Finance receivables held for investment, net — Finance receivables held for investment, net are carried at amortized cost, net of an allowance. These receivables exclude retail installment contracts that are measured at fair value on a recurring and nonrecurring basis. The estimated fair value for the underlying financial instruments is determined as follows: • Retail installment contracts held for investment and purchased receivables - credit deteriorated — The estimated fair value for certain finance receivables at September 30, 2021 is based on the most recent purchase price and hence has classified these amounts as Level 2. The estimated fair value of these remaining finance receivables at September 30, 2021 is estimated using a DCF model, and such receivables are classified as Level 3. • Finance lease receivables — Finance lease receivables are carried at gross investments, net of unearned income and allowance for lease losses. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. (c) Investments in debt securities held to maturity - Investments in debt securities held to maturity are recorded at amortized cost and are priced by third-party pricing vendors. The third-party vendors use a variety of methods when pricing these securities that incorporate relevant observable market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. These investment securities are, therefore, considered Level 2. (d) Notes payable — facilities with third parties — The carrying amount of notes payable related to revolving credit facilities is estimated to approximate fair value. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. (e) Notes payable — secured structured financings — The estimated fair value of notes payable related to secured structured financings is calculated based on market observable prices and spreads for the Company’s publicly traded debt and market observed prices of similar notes issued by the Company, or recent market transactions involving similar debt with similar credit risks, which are considered Level 2 inputs. The estimated fair value of notes payable related to privately issued amortizing notes is calculated based on a combination of credit enhancement review, discounted cash flow analysis and review of market observable spreads for similar liabilities. In conducting this analysis, the Company uses significant unobservable inputs on key assumptions, which are considered Level 3 inputs. (f) Notes payable — facilities with Santander and related subsidiaries — The carrying amount of floating rate notes payable to a related party is estimated to approximate fair value as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. The fair value premium/discount of the fixed rate promissory notes are derived from changes in the Company’s unsecured cost of funds since the time of issuance and weighted average life of these notes. |
Investment Gains (Losses), Net
Investment Gains (Losses), Net | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Gains (Losses), Net | Investment Gains (Losses), Net When the Company sells retail installment contracts, personal loans or leases to unrelated third parties or to VIEs and determines that such sale meets the applicable criteria for sale accounting, the Company recognizes a gain or loss for the difference between the cash proceeds, retained securities, and carrying value of the assets sold. The gain or loss is recorded in investment gains (losses), net. Lower of cost or market adjustments on the amortized cost of finance receivables held for sale are also recorded in investment gains (losses), net. Investment gains (losses), net was comprised of the following for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Gain (loss) on sale of loans and leases $ 2,003 $ (13,669) $ 19,412 $ (40,553) Lower of cost or market adjustments — (56,598) (31,848) (241,198) Other gains, net 3,238 1,278 5,379 1,754 $ 5,241 $ (68,989) $ (7,057) $ (279,997) The lower of cost or market adjustments for the three and nine months ended September 30, 2021 and 2020 included zero, $65,047, $81,247 and $278,144, respectively, in customer default activity, and unfavorable/(favorable) adjustments of zero, $(33,199), $24,649 and $36,946 respectively, primarily related to net changes in the unpaid principal balance on the personal lending portfolio. On March 31, 2021, the Company sold the personal lending portfolio. Refer to Note 1 - “Description of Business, Basis of Presentation, and Accounting Principles” to these Condensed Consolidated Financial Statements for more information. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense/(benefit) of $208,607 (21.5% effective tax rate) and $172,476 (26.0% effective tax rate) during the three months ended September 30, 2021 and 2020, respectively. The Company recorded income tax expense/(benefit) of $775,484 (23.2% effective tax rate) and $137,161 (26.0% effective tax rate) during the nine months ended September 30, 2021 and 2020, respectiv e ly. The effective tax rate decreased primarily due to increased benefits from electrical vehicle credits, lower effective state tax rate, discrete state tax return to provision adjustments and an increase to pre-tax income that diluted unfavorable components of the effective tax rate and allowed for absorption of favorable discrete activity to produce an effective tax rate reduction. The Company is a party to a tax sharing agreement requiring that the unitary state tax liability among affiliates included in unitary state tax returns be allocated using the hypothetical s eparate company tax calculation method. The Company had a net receivable from affiliates under the tax sharing agreement of $642 and $11,191 at September 30, 2021 and December 31, 2020, respectively, which was included in related party taxes receivable in the condensed consolidated balance sheet. The Company provides U.S. income taxes on earnings of foreign subsidiaries unless the subsidiaries’ earnings are considered indefinitely reinvested outside of the United States. As of September 30, 2021 and December 31, 2020, the Com pany has no earnings that are c onsidered indefinitely reinvested. The Company applies an aggregate portfolio approach whereby disproportionate income tax effects from accumulated other comprehensive income are released only when an entire portfolio (i.e., all related units of account) of a particular type is liquidated, sold or extinguished. Significant judgment is required in evaluating and reserving for uncertain tax positions. Although management believes adequate reserves have been established for all uncertain tax positions, the final outcomes of these matters may differ. Management does not believe the outcome of any uncertain tax position, individually or combined, will have a material effect on the Company’s business, financial position or results of operations. The reserve for uncertain tax positions, as well as associated penalties and interest, is a component of the income tax provision. |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | Computation of Basic and Diluted Earnings per Common Share Earnings per common share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period The calculation of diluted EPS excludes the effect of exercise or settlement that would be anti-dilutive for employee stock option s of zero for the three and nine months ended September 30, 2021 and 52,114 for the three and nine months ended September 30, 2020. The following table represents EPS numbers for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Earnings per common share Net income (loss) $ 763,324 $ 490,115 $ 2,563,181 $ 389,450 Weighted average number of common shares outstanding (in thousands) 306,093 310,150 306,086 321,276 Earnings per common share $ 2.49 $ 1.58 $ 8.37 $ 1.21 Earnings per common share - assuming dilution Net income (loss) $ 763,324 $ 490,115 $ 2,563,181 $ 389,450 Weighted average number of common shares outstanding (in thousands) 306,093 310,150 306,086 321,276 Effect of employee stock-based awards (in thousands) 286 157 268 216 Weighted average number of common shares outstanding - assuming dilution (in thousands) 306,379 310,307 306,354 321,492 Earnings per common share - assuming dilution $ 2.49 $ 1.58 $ 8.37 $ 1.21 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table summarizes liabilities recorded for commitments and contingencies as of September 30, 2021 and December 31, 2020, all of which are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets: Agreement or Legal Matter Commitment or Contingency September 30, 2021 December 31, 2020 MPLFA Revenue-sharing and gain/(loss), net-sharing payments $ 70,675 $ 43,778 Agreement with Bank of America Servicer performance fee 462 1,200 Agreement with CBP Loss-sharing payments 286 181 Other Contingencies Consumer arrangements 29,070 22,155 Legal and regulatory proceedings Aggregate legal and regulatory liabilities 6,348 31,936 Total commitments and contingencies $ 106,841 $ 99,250 Following is a description of the agreements and legal matters pursuant to which the liabilities in the preceding table were recorded. MPLFA Under terms of the MPLFA, the Company must make revenue sharing payments to Stellantis and also must share with Stellantis when residual gains/(losses) on leased vehicles exceed a specified threshold. The Company had accrued $70,675 and $43,778 at September 30, 2021 and December 31, 2020, respectively, related to these obligations. The MPLFA also requires that the Company maintain at least $5.0 billion in funding available for Floorplan Loans and $4.5 billion of financing dedicated to Stellantis retail financing. In turn, Stellantis must provide designated minimum threshold percentages of its subvention business to the Company. Agreement with Bank of America Until January 2017, the Company had a flow agreement with Bank of America whereby the Company was committed to selling up to $300,000 of eligible loans to the bank each month. The Company retains servicing on all sold loans and may receive or pay a servicer performance payment based on an agreed-upon formula if performance on the sold loans is better or worse, respectively, than expected performance at time of sale. Servicer performance payments are due six years from the cut-off date of each loan sale. The Company had accrued $462 and $1,200 at September 30, 2021 and December 31, 2020, respectively, related to this obligation. Agreement with CBP Until May 2017, the Company sold loans to CBP under terms of a flow agreement and predecessor sale agreements. The Company retained servicing on the sold loans and owes CBP a loss-sharing payment capped at 0.5% of the original pool balance if losses exceed a specified threshold, established on a pool-by-pool basis. Loss-sharing payments are due the month in which net losses exceed the established threshold of each loan sale. The Company had accrued $286 and $181 at September 30, 2021 and December 31, 2020, respectively, related to the loss-sharing obligation. Other Contingencies The Company is or may be subject to potential liability under various other contingent exposures. The Company had accrued $29,070 and $22,155 at September 30, 2021 and December 31, 2020, respectively, for other miscellaneous contingencies. Legal and regulatory proceedings Periodically, the Company, including its subsidiaries, is and in the future expects to be party to, or otherwise involved in, various claims, disputes, lawsuits, investigations, regulatory matters and other legal matters and proceedings that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of any such claims, disputes, lawsuits, investigations, regulatory matters or legal proceedings, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company generally cannot predict the eventual outcome of the pending matters, the timing of the ultimate resolution of the matters, or the eventual loss, fines or penalties related to the matter, if any. Accordingly, except as provided below, the Company is unable to reasonably estimate a range of its potential exposure, if any, to these claims, disputes, lawsuits, investigations, regulatory matters, and other legal proceedings at this time. Further, it is reasonably possible that actual outcomes or losses may differ materially from the Company’s current assessments and estimates and any adverse resolution of any of these matters against it could materially and adversely affect the Company’s business, financial position, liquidity, and results of operation. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal and, regulatory proceedings when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a legal or regulatory proceeding develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether the matter presents a loss contingency that is probable and estimable. If a determination is made during a given quarter that a loss contingency is probable and estimable, an accrued liability is established during such quarter with respect to such loss contingency and the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability previously established. As of September 30, 2021 and December 31, 2020, the Company accrued aggregate legal and regulatory liabilities of $6 million and $32 million, respectively. Further, the Company estimates the aggregate range of reasonably possible losses for legal and regulatory proceedings, in excess of reserves established, is zero as of September 30, 2021. Set forth below are descriptions of the material lawsuits, regulatory matters and other legal proceedings to which the Company is subject. Shareholder Derivative Lawsuit • Seattle City Employees’ Retirement System v. Santander Holdings USA, Inc., et al.: In November 2020, a shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Seattle City v. Santander Holdings USA, Inc., C.A. No. 2020-0977-AGB . The plaintiff seeks unspecified monetary damages and other injunctive relief in the complaint. The complaint alleges, among other things, that SHUSA and the current directors breached their fiduciary duties by causing the Company to engage in share repurchases for the purpose of increasing SHUSA’s ownership of the Company above 80%, which the complaint alleges would allow SHUSA to obtain tax and other benefits not available to the rest of the Company’s shareholders. The defendants filed an answer to the complaint. • Caldwell v. Santander Consumer USA Holdings Inc.: In September 2021, a purported shareholder of the Company’s common stock filed a complaint against the Company and its Board of Directors in the United States District Court for the Southern District of New York, captioned Craig Caldwell v. Santander Consumer USA Holdings Inc. 1:21-cv-07842, alleging violations of Sections 14 and 20 of the Exchange Act based on the assertion that the Board allegedly authorized the filing of a materially incomplete and misleading Solicitation/Recommendation Statement with the SEC in connection with SHUSA’s proposed purchase of the remaining outstanding common stock of the Company that SHUSA did not already own. The plaintiff seeks to enjoin the defendants from proceeding with the proposed transaction. The complaint has not been served on any of the defendants. Consumer Lending Cases The Company is also party to various lawsuits pending in federal and state courts alleging violations of state and federal consumer lending laws, including, without limitation, the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, Fair Credit Reporting Act, Section 5 of the Federal Trade Commission Act, the Telephone Consumer Protection Act, the Truth in Lending Act, wrongful repossession laws, usury laws and laws related to unfair and deceptive acts or practices. In general, these cases seek damages and equitable and/or other relief. Regulatory Investigations and Proceedings The Company is party to, or is periodically otherwise involved in, reviews, investigations, examinations and proceedings (both formal and informal), and information-gathering requests, by government and self-regulatory agencies, including the FRBB, the CFPB, the DOJ, the SEC, the FTC and various state regulatory and enforcement agencies. Currently, such matters include, but are not limited to, the following: • Mississippi Attorney General Lawsuit: In January 2017, the Attorney General of Mississippi filed a lawsuit against the Company in the Chancery Court of the First Judicial District of Hinds County, Mississippi, captioned State of Mississippi ex rel. Jim Hood, Attorney General of the State of Mississippi v. Santander Consumer USA Inc., C.A. # G-2017-28. In July 2021, the Company and the state of Mississippi entered into a settlement agreement resolving this matter for a monetary payment of $3,700 to the state of Mississippi. Agreements • Bluestem The Company is party to agreements with Bluestem whereby the Company is committed to purchase certain new advances on personal revolving financings receivables, along with existing balances on account with new advances originated by Bluestem through April 2022. During the first quarter of 2021, the Company completed the sale of the Bluestem personal lending portfolio to a third party. In addition, the Company executed a forward flow sale agreement with a third party to purchase all personal lending receivables that the Company purchases from Bluestem through the term of the agreement with Bluestem. As of December 31, 2020, the total unused credit available to customers was $2.7 billion. In 2021, the Company purchased $0.3 billion of receivables, out of the $2.7 billion unused credit available to customers as of December 31, 2020. In 2020, the Company purchased $1.2 billion of receivables, out of the $3.0 billion unused credit available to customers as of December 31, 2019. In addition, the Company purchased $24,865 and $151,163 of receivables related to newly opened customer accounts during the nine months ended September 30, 2021 and 2020, respectively. Each customer account generated under the agreements, generally, is approved with a credit limit higher than the amount of the initial purchase, with each subsequent purchase automatically approved as long as it does not cause the account to exceed its limit and the customer is in good standing. • Others Under terms of an application transfer agreement with Nissan, the Company has the first opportunity to review for its own portfolio any credit applications turned down by the Nissan’s captive finance company. The agreement does not require the Company to originate any loans, but for each loan originated by the Company, it will pay Nissan a referral fee . In connection with the sale of retail installment contracts through securitizations and other sales, the Company has made standard representations and warranties customary to the consumer finance industry. Violations of these representations and warranties may require the Company to repurchase loans previously sold to on- or off-balance sheet Trusts or other third parties. As of September 30, 2021, there were no loans that were the subject of a demand to repurchase or replace for breach of representations and warranties for the Company’s asset-backed securities or other sales. In the opinion of management, the potential exposure of other recourse obligations related to the Company’s retail installment contract sales agreements is not expected to have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows. Santander has provided guarantees on the covenants, agreements, and obligations of the Company under the governing documents of its warehouse lines and privately issued amortizing notes. These guarantees are limited to the obligations of the Company as servicer. In November 2015, the Company executed a forward flow asset sale agreement with a third party under terms of which the Company committed to sell $350,000 in charged off loan receivables in bankruptcy status on a quarterly basis. However, any sale more than $275,000 is subject to a market price check. The remaining aggregate commitment as of September 30, 2021 and December 31, 2020, not subject to market price check was $6,215 and $15,318, respectively. These matters are ongoing and could in the future result in the imposition of damages, fines or other penalties. No assurance can be given that the ultimate outcome of these matters or any resulting proceedings would not materially and adversely affect the Company’s business, financial condition and results of operations. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Related-party transactions not otherwise disclosed in these footnotes to the condensed consolidated financial statements include the following: Credit Facilities Interest expense, including unused fees, for lines of credit from SHUSA (Note 7) totaled $68,320 and $79,854 for the three months ended September 30, 2021 and 2020, respectively, and $214,550 and $213,224 for the nine months ended September 30, 2021 and 2020, respectively. Accrued interest for lines of credit from SHUSA at September 30, 2021 and December 31, 2020 was $34,114 and $40,234, respectively. Interest expense, including unused fees, for lines of credit from Santander (Note 7) totaled $11,587 and $7,997 for the three months ended September 30, 2021 and 2020, respectively, and $35,266 and $8,700 for the nine months ended September 30, 2021 and 2020, respectively. Accrued interest for lines of credit from Santander at September 30, 2021 and December 31, 2020 was $1,472 and $1,603, respectively. Derivatives The Company has derivative financial instruments with Santander and affiliates with outstanding notional amounts of $3,255,024 and $3,148,850 as of September 30, 2021 and December 31, 2020, respectively (Note 9). The Company had a collateral overage on derivative liabilities with Santander and affiliates of $495 and $907 as of September 30, 2021 and December 31, 2020, respectively. Retail Installment Contracts and RV Marine The Company also has agreements with SBNA to service auto retail installment contracts and recreational and marine vehicle portfolios. Servicing fee income recognized under these agreements totaled $317 and $472 for the three months ended September 30, 2021 and 2020, respectively, and $1,070 and $1,566 for the nine months ended September 30, 2021 and 2020, respectively. Other information on the serviced auto loan and retail installment contract portfolios for SBNA as of September 30, 2021 and December 31, 2020 is as follows: September 30, 2021 December 31, 2020 Total serviced portfolio $ 135,532 $ 190,504 Cash collections due to owner 24,395 19,650 Servicing fees receivable 4,194 1,769 Dealer Lending Under the Company’s agreement with SBNA, the Company is required to permit SBNA a first right to review and assess CCAP dealer lending opportunities, and SBNA is required to pay the Company an origination fee for each loan originated under the agreement. The agreement also transferred the servicing of all CCAP receivables from dealers, including receivables held by SBNA to the Company, from the Company to SBNA. The Company may provide advance funding for dealer loans originated by SBNA, which is reimbursed to the Company by SBNA. The Company had no outstanding receivable from SBNA as of September 30, 2021 or December 31, 2020 for such advances. Other information related to the above transactions with SBNA is as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Origination and renewal fee income from SBNA $ — $ 451 $ — $ 2,473 Servicing fees expenses charged by SBNA 33 (9) 193 63 Under the agreement with SBNA, the Company may originate retail consumer loans in connection with sales of vehicles that are collateral held against floorplan loans by SBNA. Upon origination, the Company remits payment to SBNA, which settles the transaction with the dealer. The Company owed SBNA $5,431 and $7,548 related to such originations as of September 30, 2021 and December 31, 2020, respectively. The Company received a $9,000 referral fee in connection with a sourcing and servicing arrangement and is amortizing the fee into income over the ten-year term of the agreement through July 1, 2022, the termination date of the agreement. As of September 30, 2021 and December 31, 2020, the unamortized fee balance was $1,575 and $2,250, respectively. The Company recognized $225 and $675 of income related to the referral fee for the three and nine months ended September 30, 2021 and 2020, respectively. Origination Support Services Leases Beginning in the second quarter of 2021, the Company agreed to provide SBNA with origination support services in connection with the processing, underwriting and purchase of vehicle leases, primarily from Stellantis dealers, that are funded and owned by SBNA. In addition, the Company has agreed to perform the servicing for any leases originated by SBNA. Servicing fee income recognized on leases serviced for SBNA totaled $65 for the three and nine months ended September 30, 2021 Other information on the consumer vehicle lease portfolio serviced for SBNA as of September 30, 2021 and December 31, 2020 is as follows: September 30, 2021 December 31, 2020 Total serviced portfolio $ 243,531 $ — Origination and servicing fees receivable 342 — Revenue share reimbursement receivable 48 — Retail installment contracts Beginning in 2018, the Company agreed to provide SBNA with origination support services in connection with the processing, underwriting and purchase of retail loans, primarily from Stellantis dealers. In addition, the Company agreed to perform the servicing for any loans originated by SBNA. For the three and nine months ended September 30, 2021, the Company facilitated the purchase of $1.5 billion and $6.1 billion of retail installment contacts, respectively. For the three and nine months ended September 30, 2020, the Company facilitated the purchase of $1.1 billion and $3.9 billion of retail installment contacts, respectively. The Company recognized origination fee and servicing fee income of $13,408, $40,477, $7,902 and $29,457 for the three and nine months ended September 30, 2021 and 2020, respectively, of which $1,987 and $4,089 was receivable as of September 30, 2021 and 2020, respectively. Securitizations The Company had a Master Securities Purchase Agreement (MSPA) with Santander, whereby the Company had the option to sell a contractually determined amount of eligible prime loans to Santander, through the SPAIN securitization platform, for a term that ended in December 2018. The Company provides servicing on all loans originated under this arrangement. For the three and nine months ended September 30, 2021 and 2020, the Company received the servicing fee income of $1,970, $7,263, $4,488 and $15,680, respectively, for the servicing of these loans. Servicing fee receivable, as of September 30, 2021 and December 31, 2020, was $614 and $1,070, respectively. The Company had $4,789 and $6,203 of collections due to Santander, as of September 30, 2021 and December 31, 2020, respectively. Santander Investment Securities Inc. (SIS), an affiliated entity, serves as joint book runner and co-manager on certain of the Company’s securitizations. Amounts paid to SIS for the three months ended September 30, 2021 and 2020 totaled $1,354 and $103, respectively, and totaled $4,059 and $1,625 for the nine months ended September 30, 2021 and 2020, respectively, and are included in debt issuance costs in the accompanying condensed consolidated financial statements. Employee compensation Certain employees of the Company and SHUSA provide services to each other. For the nine months ended September 30, 2021 and 2020, the Company owed SHUSA approximately $14,496 and $9,221 and SHUSA owed the Company approximately $4,467 and $4,198 for such services, respectively. Other related-party transactions • The Company subleases approximately 13,000 square feet of its corporate office space to SBNA. For the three months ended September 30, 2021 and 2020, the Company recorded $44 and for the nine months ended September 30, 2021 and 2020, the Company recorded $132 in sublease revenue on this property. • The Company has certain deposit and checking accounts with SBNA. As of September 30, 2021 and December 31, 2020, the Company had a balance of $2,016,932 and $32,490, respectively, in these accounts. • The Company has collateral accounts with SBNA with balances as of September 30, 2021 and December 31, 2020 of $6,808 and $27, respectively, in these accounts. • The Company and SBNA have a Credit Card Agreement (Card Agreement) whereby SBNA provides credit card services for travel and related business expenses for vendor payments. This service is at zero cost but generates rebates based on purchases made. As of September 30, 2021, the activities associated with the program were insignificant. • The Company pays SBNA a market rate-based fee expense for payments made at SBNA retail branch locations for accounts originated or serviced by the Company and the costs associated with modifying the Advanced Teller platform to the payments. The Company incurred expenses totaled $33 and $39 for the three months ended September 30, 2021 and 2020, respectively, and $100 and $140 for the nine months ended September 30, 2021 and 2020, respectively. • The Company has contracted Aquanima, a Santander affiliate, to provide procurement services. Expenses incurred totaled $1,062 and $785 for the three months ended September 30, 2021, and 2020, respectively, and totaled $2,635 and $2,079 for the nine months ended September 30, 2021 and 2020, respectively. • Santander Global Tech (formerly known as Produban Servicios Informaticos Generales S.L.), a Santander affiliate, provides professional services, telecommunications, and internal and/or external applications to the Company. Expenses incurred, which are included as a component of other operating costs in the accompanying consolidated statements of income, totaled zero and $279 for the three months ended September 30, 2021 and 2020, respectively, and zero and $350 for the nine months ended September 30, 2021 and 2020, respectively. • The Company partners with SHUSA to place Cyber Liability Insurance in which participating worldwide Santander entities share €270 million aggregate limits. The Company repays SHUSA for the Company’s equitably allocated portion of insurance premiums and fees. Expenses incurred totaled $150 and $97 for the three months ended September 30, 2021 and 2020, respectively, and totaled $451 and $313 for the nine months ended September 30, 2021 and 2020, respectively. In addition, the Company partners with SHUSA for various other insurance products. Expenses incurred totaled $661 and $416 for the three months ended September 30, 2021 and 2020, respectively, and totaled $1,687 and $781 and for the nine months ended September 30, 2021 and 2020, respectively. • In July 2021, the Company entered into a Platform Development and License Agreement ("PDLA") with AutoFi Inc. for the design and operation of a digital software platform for the sale and financing of automobiles. Mouro Capital, which is a wholly-owned subsidiary of Santander, owns 10.3% of the total equity of AutoFi Inc. The PDLA, requires the Company to pay $6,000 for the design and development of the digital software platform in the first year of the PDLA. After the first year of the PDLA, the Company has agreed to pay AutoFi, Inc. between $2,400 and $3,000 per year plus certain transaction-related fees for software development, dealer onboarding and support, and hosting services. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has granted stock options to certain executives, other employees, and independent directors under the Company’s 2011 Management Equity Plan (the MEP), which enabled the Company to grant stock option awards up to a total of approximately 29 million common shares (net of shares canceled and forfeited). The MEP expired in January 2015, and the Company will not grant any further awards under the MEP. The Company has granted stock options, restricted stock awards and restricted stock units (RSUs) under the Omnibus Incentive Plan (the Plan), which was established in 2013 and enables the Company to grant awards of cash and of non-qualified and incentive stock options, stock appreciation rights, restricted stock awards, RSUs, and other awards that may be settled in or based upon the value of the Company’s common stock up to a total of 5,192,641 shares of common stock. The Plan was amended and restated as of June 16, 2016. Stock options granted under the MEP and the Plan have an exercise price based on the estimated fair market value of the Company’s common stock on the grant date. The stock options expire ten years after grant date and include both time vesting options and performance vesting options. The fair value of the stock options is amortized into expense over the vesting period as time and performance vesting conditions are met. In connection with compensation restrictions imposed on certain executive officers and other employees by the European Central Bank under the Capital Requirements Directive IV prudential rules, which require a portion of such officers’ and employees’ variable compensation to be paid in the form of equity, the Company periodically grants RSUs. Under the Plan, a portion of these RSUs vest immediately upon grant, and a portion vest annually over the following three directors RSUs that vest upon the earlier of the first anniversary of grant date or the first annual stockholder meeting following the grant date. RSUs are valued based upon the fair market value on the date of the grant. The Company recognized $8,989 and $6,161 related to stock options and restricted stock units within compensation expense for the nine months ended September 30, 2021 and 2020 , respectively. In addition, the Company recognizes forfeitures of awards as they occur. A summary of the Company’s stock options and related activity as of and for the nine months ended September 30, 2021 is as follows: Shares Weighted Weighted Aggregate Options outstanding at January 1, 2021 169,369 $ 13.01 1.9 $ 1,543 Granted — — — — Exercised (77,885) 10.08 — 1,650 Expired — — — — Forfeited — — — — Other (a) — — — — Options outstanding at September 30, 2021 91,484 15.51 1.8 2,396 Options exercisable at September 30, 2021 91,484 $ 15.51 1.8 $ 2,396 Options expected to vest at September 30, 2021 — $ — 0 $ — (a) Represents stock options that were reinstated. A summary of the Company’s Restricted Stock Units and performance stock units and related activity as of and for the nine months ended September 30, 2021 is as follows: Shares Weighted Weighted Aggregate Outstanding as of January 1, 2021 367,012 $ 19.78 0.8 $ 8,082 Granted 438,435 27.71 — — Vested (401,549) 23.04 — 10,847 Forfeited/canceled (7,549) 14.67 — — Non-vested at September 30, 2021 396,349 $ 25.10 1.1 $ 16,528 |
Description of Business, Basi_2
Description of Business, Basis of Presentation, and Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries, including certain Trusts that are considered VIEs. The Company also consolidates other VIEs for which it is deemed to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in accordance with GAAP and pursuant to SEC regulations. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments of a normal and recurring nature necessary for a fair statement of the Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Stockholder's Equity and Statement of Cash Flow for the interim periods indicated, and contain adequate disclosure to make the information presented not misleading. Results of operations for the periods presented herein are not necessarily indicative of results of operations for the entire year. These financial statements should be read in conjunction with the Annual Report of the Company on Form 10-K for the year ended December 31, 2020 (the "2020 Annual Report on Form 10-K"). |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates and those differences may be material. The most significant estimates include the determination of credit loss allowance, fair value measurements, expected end-of-term lease residual values, and income taxes. These estimates, although based on actual historical trends and modeling, may show significant variances over time. |
Business Segment Information | Business Segment Information The Company has one reportable segment, Consumer Finance, which includes the Company’s vehicle financial products and services, including retail installment contracts, vehicle leases, and financial products and services related to recreational vehicles and marine vehicles. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Summary of Financing Receivables Held for Investment | Finance receivables held for investment, net is comprised of the following at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Retail installment contracts, net (a) $ 27,461,064 $ 26,975,368 Purchased receivables - credit deteriorated 1,440 6,197 Finance lease receivables (Note 4) 21,237 22,440 Finance receivables held for investment, net $ 27,483,741 $ 27,004,005 (a) The Company has elected the fair value option for certain retail installment contracts reported in finance receivables held for investment, net. As of September 30, 2021 and December 31, 2020, $6,170 and $5,614 of loans were recorded at fair value, respectively (Note 10). The Company’s held for investment portfolio of retail installment contracts is comprised of the following at September 30, 2021 and December 31, 2020: September 30, 2021 Retail Installment Contracts Non-TDR TDR Unpaid principal balance $ 28,779,433 $ 3,952,344 ACL (4,398,303) (1,297,841) Discount/(premium) (net of subvention and participation) 326,675 (3,601) Capitalized origination costs and fees 98,549 3,808 Net carrying balance $ 24,806,354 $ 2,654,710 ACL as a percentage of unpaid principal balance 15.3 % 32.8 % ACL and discount as a percentage of unpaid principal balance 14.1 % 32.9 % December 31, 2020 Retail Installment Contracts Non-TDR TDR Unpaid principal balance $ 28,977,299 $ 3,945,040 ACL (4,792,464) (1,314,170) Discount (net of subvention and participation) 66,373 (8,389) Capitalized origination costs and fees 97,638 4,041 Net carrying balance $ 24,348,846 $ 2,626,522 ACL as a percentage of unpaid principal balance 16.5 % 33.3 % ACL and discount as a percentage of unpaid principal balance 16.3 % 33.5 % |
Schedule of Carrying Values of Finance Receivables Held for Sale | The carrying value of the Company’s finance receivables held for sale, net is comprised of the following at September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Retail installment contracts acquired individually $ 359,561 $ 674,048 Personal loans (a) — 893,479 (a) On March 31, 2021, the Company sold the personal lending portfolio. Refer to Note 1 – “Description of Business, Basis of Presentation, and Accounting Principles” to these Condensed Consolidated Financial Statements for more information. |
Schedule of Sales of Retail Installment Contracts and Charged-off Assets | Sales of retail installment contracts, personal loans to third parties (unpaid principal balance), and proceeds from sales of charged-off assets for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Sales of retail installment contracts to third parties $ 277,898 $ 636,301 $ 2,968,467 $ 1,148,587 Sales of Personal Loans to third parties — — 1,253,746 — Proceeds from sales of charged-off assets to third parties — 9,144 13,901 30,019 |
Allowance for Credit Loss and_2
Allowance for Credit Loss and Credit Quality (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Credit Loss [Abstract] | |
Summary of Activity in Loan Loss Allowance | The activity in the ACL for the retail installment contracts for the three and nine months ended September 30, 2021 and 2020 was as follows: Three Months Ended September 30, 2021 September 30, 2020 Retail Installment Contracts Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 4,299,670 $ 1,514,994 $ 4,818,187 $ 1,037,628 Credit loss expense (benefit) 188,195 (144,772) 24,841 314,075 Charge-offs (427,659) (206,111) (334,938) (200,352) Recoveries 338,097 133,730 392,042 97,171 Balance — end of period $ 4,398,303 $ 1,297,841 $ 4,900,132 $ 1,248,522 Nine Months Ended September 30, 2021 September 30, 2020 Retail Installment Contracts Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 4,792,464 $ 1,314,170 $ 2,123,878 $ 914,718 Day 1 - Adjustment to allowance for adoption of CECL standard — — 2,030,473 71,833 Credit loss expense (benefit) (252,963) 169,268 1,526,545 581,344 Charge-offs (a) (1,356,482) (599,083) (1,955,706) (617,536) Recoveries 1,215,284 413,486 1,174,942 298,163 Balance — end of period $ 4,398,303 $ 1,297,841 $ 4,900,132 $ 1,248,522 (a) Charge-offs decreased significantly, primarily driven by macro-economic improvements. Additionally, Charge-offs for retail installment contracts includes partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional ACL on these loans. |
Summary of Delinquencies | A summary of delinquencies as of September 30, 2021, and December 31, 2020 is as follows: September 30, 2021 Finance Receivables Held for Investment Retail Installment Contract Loans Purchased Receivables Portfolios - credit deteriorated Total Percent Amortized cost, 30-59 days past due $ 2,253,907 $ 401 $ 2,254,308 6.8 % Amortized cost over 59 days 1,106,673 400 1,107,073 3.3 % Total delinquent balance at amortized cost (a) $ 3,360,580 $ 801 $ 3,361,381 10.1 % (a) The amount of accrued interest excluded from the disclosed amortized cost table is $63,205. December 31, 2020 Finance Receivables Held for Investment Retail Installment Contract Loans Purchased Receivables Portfolios - credit impaired Total Percent Amortized cost, 30-59 days past due $ 1,971,766 $ 687 $ 1,972,453 6.0 % Amortized cost over 59 days 1,038,869 441 1,039,310 3.1 % Total delinquent balance at amortized cost (a) $ 3,010,635 $ 1,128 $ 3,011,763 9.1 % (a) The amount of accrued interest excluded from the disclosed amortized cost table is $73,794. |
Summary of Financing Receivables on Nonaccrual Status | The amortized cost basis of financial instruments that are either non-accrual with related expected credit loss or non-accrual without related expected credit loss for retail installment contracts is as follows: September 30, 2021 Non-accrual loans Non-accrual loans with no allowance (a) Interest income recognized on nonaccrual loans (YTD) Non-accrual loans as a percent of total amortized cost Non-TDR $ 818,292 $ 157,314 $ 46,445 2.5 % TDR 391,834 47,281 26,576 1.2 % Total non-accrual loans $ 1,210,126 $ 204,595 $ 73,021 3.7 % December 31, 2020 Non-accrual loans Non-accrual loans with no allowance (a) Interest income recognized on nonaccrual loans (YTD) Non-accrual loans as a percent of total amortized cost Non-TDR $ 748,026 $ 145,287 $ 72,926 2.3 % TDR 385,021 46,498 35,620 1.2 % Total nonaccrual loans $ 1,133,047 $ 191,785 $ 108,546 3.5 % (a) These represent loans for which a bankruptcy notice was received and that have been partially written down to the collateral value less estimated costs to sell. Accordingly, there is no additional ACL on these loans. |
Financing Receivable Credit Quality Indicators | Total September 30, 2021 2020 2019 2018 2017 2016 Prior Amount % No-FICO ® s 1,603 1,173 738 337 266 112 50 4,279 12.9% <540 1,573 1,306 948 608 283 151 125 4,994 15.1% 540-599 4,364 3,038 2,030 1,134 413 234 156 11,369 34.3% 600-639 2,828 1,831 1,182 625 201 123 65 6,855 20.7% >=640 (a) 2,345 1,655 853 506 151 105 45 5,660 17.0% Total (b) $ 12,713 $ 9,003 $ 5,751 $ 3,210 $ 1,314 $ 725 $ 441 $ 33,157 100.00% (a) Beginning in 2021, loans with FICO score of 640 are disclosed in the >=640 category. (b) The amount of accrued interest excluded from the disclosed amortized cost table is $323 million . Total December 31, 2020 2019 2018 2017 2016 2015 Prior Amount % No-FICO ® s 1,760 1,151 530 501 247 128 26 4,343 13.1% <540 1,789 1,370 913 454 263 186 90 5,065 15.3% 540-599 4,269 3,005 1,736 673 423 264 96 10,466 31.7% 600-639 2,759 1,838 990 335 230 126 47 6,325 19.1% >640 (a) 4,040 1,411 810 265 200 124 33 6,883 20.8% Total (b) $ 14,617 $ 8,775 $ 4,979 $ 2,228 $ 1,363 $ 828 $ 292 $ 33,082 100.0% (a) As of December 31, 2020, loans with FICO score of 640 were included in the 600-639 category. (b) The amount of accrued interest excluded from the disclosed amortized cost table is $416 million . |
Summary of TDRs | The table below presents the Company’s amortized cost of TDRs as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Retail Installment Contracts Amortized Cost (including accrued interest) (a) $ 3,980,920 $ 4,011,780 Impairment (1,297,841) (1,314,170) Amortized cost including accrued interest, net of impairment $ 2,683,079 $ 2,697,610 (a) As of September 30, 2021, this balance excludes $56.2 million of collateral-dependent bankruptcy TDRs that have been written down by $8.9 million to fair value less cost to sell. As of December 31, 2020, this balance excludes $67.9 million of collateral-dependent bankruptcy TDRs that have been written down by $21.4 million to fair value less cost to sell. A summary of the amortized cost of the Company’s delinquent TDRs at September 30, 2021 and December 31, 2020 is as follows: September 30, 2021 December 31, 2020 Retail Installment Contracts 30-59 days past due $ 744,637 $ 637,560 Delinquent balance over 59 days 381,840 344,776 Total delinquent TDRs $ 1,126,477 $ 982,336 Average amortized cost and interest income recognized on TDR loans are as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Retail Installment Contracts Retail Installment Contracts Average amortized cost (including accrued interest) $ 4,142,089 $ 3,960,119 $ 4,203,685 $ 3,802,823 Interest income recognized 212,073 165,637 635,188 457,642 The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs that occurred for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Retail Installment Contracts Retail Installment Contracts Amortized cost (including accrued interest) before TDR $ 219,898 $ 317,455 $ 1,326,077 $ 1,399,813 Amortized cost (including accrued interest) after TDR (a) 220,679 319,027 1,333,257 1,417,480 Number of contracts (not in thousands) 12,063 14,620 67,354 69,786 (a) excluding collateral-dependent bankruptcy TDRs Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Retail Installment Contracts Retail Installment Contracts Amortized cost (including accrued interest) in TDRs that subsequently defaulted (a)` $ 91,260 $ 83,002 $ 283,914 $ 183,871 Number of contracts (not in thousands) 4,724 4,379 14,496 10,467 |
Leases (SC as Lessor) (Tables)
Leases (SC as Lessor) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | Leased vehicles, net, which is comprised of leases originated under the MPLFA, consisted of the following as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Leased vehicles $ 20,032,832 $ 22,056,063 Less: accumulated depreciation (3,920,416) (4,796,595) Depreciated net capitalized cost 16,112,416 17,259,468 Manufacturer subvention payments, net of accretion (700,783) (934,381) Origination fees and other costs 117,977 66,020 Net book value $ 15,529,610 $ 16,391,107 |
Summary of Maturity of Operating Lease Payments to be Received | The following summarizes the maturity analysis of lease payments due to the Company, as lessor, under operating leases as of September 30, 2021: Remainder of 2021 $ 910,739 2022 2,101,818 2023 1,363,807 2024 286,598 2025 25,093 Thereafter 1,295 Total $ 4,689,350 |
Schedule of Finance Lease Receivables, Net | Finance lease receivables, net consisted of the following as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Gross investment in finance leases $ 33,498 $ 34,461 Origination fees and other 283 289 Less: unearned income (8,990) (8,311) Net investment in finance leases before allowance 24,791 26,439 Less: allowance for lease losses (3,554) (3,999) Net investment in finance leases $ 21,237 $ 22,440 |
Summary of Maturity of Finance Lease Payments to be Received | The following summarizes the maturity analysis of lease payments due to the Company, as lessor, under finance leases as of September 30, 2021: Remainder of 2021 $ 2,688 2022 10,275 2023 8,547 2024 6,509 2025 4,054 Thereafter 1,425 Total $ 33,498 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Assets, Leases And Investments [Abstract] | |
Schedule of Other Assets | Other assets were comprised as follows: September 30, 2021 December 31, 2020 Vehicles (a) $ 269,627 $ 311,557 Manufacturer subvention payments receivable (b) 29,361 57,996 Upfront fee (b) 47,015 69,286 Derivative assets at fair value (c) 13,314 4,740 Derivative - collateral 23,037 92,132 Operating leases (Right-of-use-assets) 61,590 46,441 Available-for-sale debt securities 90,688 95,654 Held-to-maturity debt securities (d) 101,874 44,875 Equity securities not held for trading 2,671 1,380 Prepaids 35,152 45,667 Accounts receivable 28,737 34,607 Federal and State tax receivable 76,113 99,666 Other 32,418 68,725 Other assets $ 811,597 $ 972,726 (a) Includes vehicles recovered through repossession as well as vehicles recovered due to lease terminations. (b) These amounts relate to the MPLFA . The Company paid a $150,000 upfront fee upon the May 2013 inception of the MPLFA . The fee is being amortized into finance and other interest income over a ten-year term. In addition, in June 2019, in connection with the execution of an amendment to the MPLFA , the Company paid a $60,000 upfront fee to Stellantis. This fee is being amortized into finance and other interest income over the remaining term of the MPLFA . (c) Derivative assets at fair value represent the gross amount of derivatives presented in the condensed consolidated financial statements. Refer to Note 9 - "Derivative Financial Instruments" to these Condensed Consolidated Financial Statements for the detail of these amounts. |
Supplemental Information Related to Operating Leases | Supplemental information relating to these operating leases is as follows: September 30, 2021 December 31, 2020 Operating leases-right of use assets $ 61,590 $ 46,441 Other liabilities 77,854 64,927 Weighted average lease term 6.2 5.5 Weighted average discount rate 2.7 % 3.4 % |
Schedule of Maturity of Lease Liabilities | The maturity of lease liabilities at September 30, 2021 are as follows: September 30, 2021 2021 $ 4,078 2022 17,409 2023 14,343 2024 14,313 2025 14,397 Thereafter 18,029 Total $ 82,569 Less: Interest (4,715) Present value of lease liabilities $ 77,854 |
Schedule of Debt Securities, AFS | The following tables present the amortized cost, gross unrealized gains and losses and approximate fair values of debt securities available-for-sale and held-to-maturity debt securities: September 30, 2021 Amortized cost (before unrealized gains / losses) Gross Unrealized gain Gross Unrealized loss Fair value Available-for-sale debt securities (US Treasury securities) $ 89,437 $ 1,251 $ — $ 90,688 Held-to-maturity debt securities (Asset-Backed Notes) $ 101,815 $ 634 $ — $ 102,449 Contractual Maturities The contractual maturities of available-for-sale and held-to-maturity debt instruments are summarized in the following table: September 30, 2021 Available-for-sale debt securities Held-to-maturity debt securities Amortized cost Fair value Amortized cost Fair value Due within one year $ 66,924 $ 67,650 $ — $ — Due after one year but within 5 years 22,513 23,038 48,200 48,491 Due after 5 year but within 10 years — — 53,615 53,958 Total $ 89,437 $ 90,688 $ 101,815 $ 102,449 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entity Disclosure [Abstract] | |
Schedule of Variable Interest Entities | The assets of consolidated VIEs, presented based upon the legal transfer of the underlying assets in order to reflect legal ownership, that can be used only to settle obligations of the consolidated VIE and the liabilities of these entities for which creditors (or beneficial interest holders) do not have recourse to the Company’s general credit were as follows: September 30, 2021 December 31, 2020 Assets Restricted cash $ 1,682,654 $ 1,737,021 Finance receivables held for sale, net 113,313 581,938 Finance receivables held for investment, net 21,785,308 22,572,549 Leased vehicles, net 15,529,610 16,391,107 Various other assets 706,130 791,306 Total assets $ 39,817,015 $ 42,073,921 Liabilities Notes payable $ 30,632,558 $ 31,700,709 Various other liabilities 107,743 84,922 Total liabilities $ 30,740,301 $ 31,785,631 |
Summary of Cash Flows Received from Consolidated Securitization Trusts | A summary of the cash flows received from consolidated securitization Trusts during the three and nine months ended September 30, 2021 and 2020, is as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Assets securitized $ 7,095,782 $ 5,282,901 $ 18,457,441 $ 15,845,707 Net proceeds from new securitizations (a) $ 6,591,786 $ 4,662,211 $ 16,168,394 $ 11,470,857 Net proceeds from retained bonds — 1,293 195,967 57,286 Cash received for servicing fees (b) 228,194 242,245 686,789 735,533 Net distributions from Trusts (b) 1,391,970 1,173,276 4,435,605 2,730,657 Total cash received from Trusts $ 8,211,950 $ 6,079,025 $ 21,486,755 $ 14,994,333 (a) Includes additional advances on existing securitizations. (b) These amounts are not reflected in the accompanying condensed consolidated statements of cash flows because these cash flows are intra-company and eliminated in consolidation. A summary of the cash flows received from off-balance sheet securitization Trusts for the three and nine months ended September 30, 2021 and 2020, is as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Receivables securitized (a) $ — $ 636,301 $ 1,891,278 $ 1,148,587 Net proceeds from new securitizations — 592,455 1,779,532 1,052,541 Cash received for servicing fees 8,041 6,598 24,061 17,856 Total cash received from securitization trusts 8,041 599,053 $ 1,803,593 $ 1,070,397 |
Off-balance Sheet Variable Interest Entities Portfolio | The portfolio was comprised as follows: September 30, 2021 December 31, 2020 Related party SPAIN serviced securitizations $ 687,158 $ 1,214,644 Third party SCART serviced securitizations 2,067,156 929,429 Third party CCAP serviced securitizations — 82,713 Total serviced for others portfolio $ 2,754,314 $ 2,226,786 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Total borrowings and other debt obligations as of September 30, 2021 and December 31, 2020 consists of: September 30, 2021 December 31, 2020 Notes Payable — Facilities with Third Parties $ — $ 4,159,955 Notes Payable — Secured Structured Financings 28,831,858 26,177,401 Notes Payable — Facilities with Santander and Related Subsidiaries (a) 9,600,000 10,801,318 $ 38,431,858 $ 41,138,674 |
Schedule of Credit Facilities | The following table presents information regarding the Company’s credit facilities as of September 30, 2021 and December 31, 2020: September 30, 2021 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line June 2023 $ — $ 500,000 —% $ 367,404 $ — Warehouse line March 2023 — 1,250,000 —% 246,480 1 Warehouse line October 2022 — 1,500,000 —% 121,046 — Warehouse line October 2022 — 3,500,000 —% 133,429 — Warehouse line October 2022 — 500,000 —% 13,409 500 Warehouse line October 2022 — 2,100,000 —% 175,624 64 Warehouse line January 2023 — 1,000,000 —% 477,840 — Warehouse line November 2022 — 500,000 —% 279,703 — Warehouse line July 2022 — 900,000 —% — — Total facilities with third parties — 11,750,000 1,814,935 565 Facilities with Santander and related subsidiaries: Promissory Note December 2021 250,000 250,000 3.58% — — Promissory Note December 2022 250,000 250,000 3.82% — — Promissory Note December 2023 250,000 250,000 5.07% — — Promissory Note December 2022 250,000 250,000 4.83% — — Promissory Note May 2023 350,000 350,000 3.67% — — Promissory Note November 2022 400,000 400,000 2.90% — — Promissory Note April 2023 450,000 450,000 5.92% — — Promissory Note June 2022 500,000 500,000 3.19% — — Promissory Note July 2024 500,000 500,000 3.77% — — Promissory Note March 2022 650,000 650,000 4.06% — — Promissory Note September 2023 750,000 750,000 3.17% — — Promissory Note May 2025 1,000,000 1,000,000 3.86% — — Promissory Note June 2022 2,000,000 2,000,000 2.03% — — Promissory Note September 2022 2,000,000 2,000,000 1.01% — — Line of credit July 2024 — 500,000 2.08% — — Line of credit March 2023 — 2,500,000 3.28% — — Total facilities with Santander and related subsidiaries 9,600,000 12,600,000 — — Total revolving credit facilities $ 9,600,000 $ 24,350,000 $ 1,814,935 $ 565 (a) In 2017, the Company entered into an interest rate swap to hedge the interest rate risk on this fixed rate debt. This derivative was designated as fair value hedge at inception. This derivative was later terminated and the unamortized fair value hedge adjustment as of September 30, 2021 and December 31, 2020 was zero and $1.3 million, respectively, the amortization of which reduced interest expense over the life of the fixed rate debt. December 31, 2020 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line August 2022 $ — $ 500,000 1.50% $ 159,348 $ — Warehouse line March 2022 942,845 1,250,000 1.34% 1,621,206 1 Warehouse line October 2022 1,000,600 1,500,000 1.85% 639,875 — Warehouse line October 2022 441,143 3,500,000 3.45% 2,057,758 — Warehouse line October 2022 168,300 500,000 3.07% 243,649 1,201 Warehouse line October 2022 845,800 2,100,000 3.29% 1,156,885 — Warehouse line January 2022 415,700 1,000,000 1.81% 595,518 — Warehouse line November 2022 177,600 500,000 1.18% 371,959 — Warehouse line July 2022 — 900,000 1.46% — 1,684 Repurchase facility January 2021 167,967 167,967 1.64% 217,200 — Total facilities with third parties 4,159,955 11,917,967 7,063,398 2,886 Facilities with Santander and related subsidiaries: Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note December 2023 250,000 250,000 5.25% — — Promissory Note December 2022 250,000 250,000 5.00% — — Promissory Note May 2021 250,000 250,000 2.25% — — Promissory Note March 2021 300,000 300,000 3.95% — — Promissory Note May 2023 350,000 350,000 3.80% — — Promissory Note November 2022 400,000 400,000 3.00% — — Promissory Note April 2023 450,000 450,000 6.13% — — Promissory Note June 2022 500,000 500,000 3.30% — — Promissory Note July 2024 500,000 500,000 3.90% — — Promissory Note March 2022 650,000 650,000 4.20% — — Promissory Note August 2021 650,000 650,000 3.44% — — Promissory Note September 2023 750,000 750,000 3.27% — — Promissory Note May 2025 1,000,000 1,000,000 3.99% — — Promissory Note June 2022 2,000,000 2,000,000 1.40% — — Promissory Note September 2022 2,000,000 2,000,000 1.04% — — Line of credit July 2021 — 500,000 2.08% — — Line of credit March 2022 — 2,500,000 3.28% — — Total facilities with Santander and related subsidiaries 10,800,000 13,800,000 — — Total revolving credit facilities 14,959,955 25,717,967 7,063,398 2,886 |
Summary of Secured Structured Financings | The following table presents information regarding secured structured financings as of September 30, 2021 and December 31, 2020: September 30, 2021 Estimated Maturity Date(s) at Issuance Balance Initial Note Amounts Issued (d) Initial Weighted Average Interest Rate Collateral (b) Restricted Cash 2017 Securitizations July 2022 - September 2024 118,293 3,889,470 1.35% - 2.52% 564,070 90,895 2018 Securitizations February 2024 - April 2026 1,606,743 11,000,280 2.41% - 3.42% 2,510,723 264,577 2019 Securitizations May 2024 - February 2027 4,249,645 11,924,720 2.08% - 3.34% 5,788,406 466,789 2020 Securitizations November 2024 - May 2028 5,629,703 10,028,425 0.60% - 2.73% 7,256,352 364,410 2021 Securitizations November 2025 - March 2029 13,052,747 14,986,600 0.48% - 0.65% 15,283,626 479,199 Public Securitizations (a) 24,657,131 51,829,495 31,403,177 1,665,870 2013 Private issuances July 2024 - September 2024 230,404 1,537,025 1.28% 1,015,024 751 2018 Private issuances June 2022 - April 2024 1,452,711 2,200,002 2.42% - 3.17% 2,111,645 — 2019 Private issuance September 2022 - November 2026 1,517,437 3,524,536 2.45% - 3.90% 2,300,073 10,566 2020 Private issuance April 2024 - December 2027 974,175 1,500,000 1.29% - 2.68% 1,330,694 4,902 Privately issued amortizing notes (c) 4,174,727 8,761,563 6,757,436 16,219 Total secured structured financings $ 28,831,858 $ 60,591,058 $ 38,160,613 $ 1,682,089 (a) Securitizations executed under Rule 144A of the Securities Act are included within this balance. (b) Secured structured financings may be collateralized by the Company’s collateral overages of other issuances. (c) All privately issued amortizing notes issued in 2014 through 2017 were paid in full. (d) Excludes securitizations that no longer have outstanding debt and excludes any incremental borrowings. December 31, 2020 Estimated Maturity Date(s) at Issuance Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Collateral Restricted Cash 2016 Securitizations August 2022 - March 2024 $ 259,078 $ 2,519,810 1.63% - 2.34% $ 354,985 $ 85,041 2017 Securitizations July 2022 - September 2024 1,049,867 8,262,940 1.35% - 2.52% 1,661,845 211,606 2018 Securitizations May 2022 - April 2026 2,723,099 12,039,840 2.41% - 3.42% 4,130,936 376,246 2019 Securitizations May 2024 - February 2027 6,653,226 11,924,720 2.08% - 3.34% 8,582,241 488,546 2020 Securitizations November 2024 - May 2028 8,256,890 10,028,425 0.60% - 2.73% 10,292,570 548,912 Public Securitizations 18,942,160 44,775,735 25,022,577 1,710,351 2013 Private issuances July 2024 - September 2024 777,210 1,537,025 1.28% 1,843,443 751 2018 Private issuances June 2022 - April 2024 2,768,145 4,186,002 2.42%- 3.53% 4,223,567 7,675 2019 Private issuance September 2022 - November 2026 2,584,974 3,524,536 2.45% - 3.90% 3,632,833 10,457 2020 Private issuance April 2024 - December 2027 1,104,912 1,500,000 1.29% - 2.68% 1,532,280 4,902 Privately issued amortizing notes 7,235,241 10,747,563 11,232,123 23,785 Total secured structured financings $ 26,177,401 $ 55,523,298 $ 36,254,700 $ 1,734,136 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Class of Treasury Stock | Please find below the details of the Company's tender offer and other share repurchase programs for the three and nine months ended September 30, 2021 and 2020 : Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Tender offer (a): Number of shares purchased — — — 17,514,707 Average price per share $ — $ — $ — $ 26.00 Cost of shares purchased (b) $ — $ — $ — $ 455,382 Other share repurchases: Number of shares purchased — 10,198,800 357,747 15,956,561 Average price per share $ — $ 21.91 $ 26.46 $ 20.00 Cost of shares purchased (b) $ — $ 223,485 $ 9,468 $ 319,075 Total number of shares purchased — 10,198,800 357,747 33,471,268 Average price per share $ — $ 21.91 $ 26.46 $ 23.14 Total cost of shares purchased (b) $ — $ 223,485 $ 9,468 $ 774,457 (a) During the three months ended March 31, 2020, the Company purchased shares of its common stock through a modified Dutch Auction Tender Offer. (b) Cost of shares exclude commissions |
Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | A summary of changes in accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2021 and 2020 is as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance, unrealized gains (losses) $ (36,855) $ (63,705) $ (50,566) $ (26,693) Other comprehensive income (loss) before reclassifications (gross) 414 94 2,603 (43,212) Amounts (gross) reclassified out of accumulated other comprehensive income (loss) 5,247 6,729 16,769 13,023 Ending balance, unrealized gains (losses) $ (31,194) $ (56,882) $ (31,194) $ (56,882) |
Reclassification of Amounts Out of Accumulated Other Comprehensive Income (Loss) | Amounts (gross) reclassified out of accumulated other comprehensive income (loss) during the three and nine months ended September 30, 2021 and 2020 consist of the following: Three Months Ended Nine Months Ended Income statement line item Reclassification September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cash flow hedges $ 6,946 $ 8,939 $ 22,254 $ 17,260 Interest expense Tax benefit (1,699) (2,210) (5,485) (4,237) Net of tax $ 5,247 $ 6,729 $ 16,769 $ 13,023 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Underlying Notional Amounts and Aggregate Fair Values | The underlying notional amounts of these derivative financial instruments at September 30, 2021 and December 31, 2020, are as follows: September 30, 2021 December 31, 2020 Notional Asset Liability Notional Asset Liability Interest rate swap agreements designated as cash flow hedges $ — $ — $ — $ 2,450,000 $ 123 $ (70,589) Interest rate swap agreements not designated as hedges 250,000 — (8,085) 250,000 — (12,934) Interest rate cap agreements 7,649,971 13,314 — 10,199,134 4,617 — Options for interest rate cap agreements 7,649,971 — (13,314) 10,199,134 — (4,617) |
Schedule of Offsetting Financial Assets | Information on the offsetting of derivative assets and derivative liabilities due to the right of offset was as follows, as of September 30, 2021 and December 31, 2020: Gross Amounts Not Offset in the Assets Presented in the Collateral Net September 30, 2021 Interest rate caps - Santander and affiliates $ 2,334 $ (2,334) $ — Interest rate caps - third party 10,980 (10,980) — Total derivatives subject to a master netting arrangement or similar arrangement 13,314 (13,314) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 13,314 $ (13,314) $ — Total financial assets $ 13,314 $ (13,314) $ — December 31, 2020 Interest rate swaps - third party (b) $ 123 $ (123) $ — Interest rate caps - Santander and affiliates 463 (463) — Interest rate caps - third party 4,154 (4,154) — Total derivatives subject to a master netting arrangement or similar arrangement 4,740 (4,740) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 4,740 $ (4,740) $ — Total financial assets $ 4,740 $ (4,740) $ — (a) Collateral received includes cash, cash equivalents, initial margin and other financial instruments. Cash collateral received is reported in Other liabilities in the consolidated balance sheet. Financial instruments that are pledged to the Company are not reflected in the accompanying balance sheet since the Company does not control or have the ability of rehypothecation of these instruments. In certain instances, the counter party is over-collateralized since the actual amount of collateral received exceeds the associated financial asset. As a result, the actual amount of collateral received that is reported may be greater than the amount shown in the table above. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. |
Schedule of Offsetting Financial Liabilities | Gross Amounts Not Offset in the Liabilities Presented in the Collateral Net September 30, 2021 Interest rate swaps - third party (b) $ 8,085 $ (8,085) $ — Interest rate caps - Santander and affiliates 2,334 (2,334) — Interest rate caps - third party 10,980 (4,885) 6,095 Total derivatives subject to a master netting arrangement or similar arrangement 21,399 (15,304) 6,095 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 21,399 $ (15,304) $ 6,095 Total financial liabilities $ 21,399 $ (15,304) $ 6,095 December 31, 2020 Interest rate swaps - third party $ 83,523 $ (83,523) $ — Interest rate caps - Santander and affiliates 463 (463) — Interest rate caps - third party 4,154 (4,154) — Total derivatives subject to a master netting arrangement or similar arrangement 88,140 (88,140) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 88,140 $ (88,140) $ — Total financial liabilities $ 88,140 $ (88,140) $ — (a) Collateral pledged includes cash, cash equivalents, initial margin and other financial instruments. These balances are reported in Other assets in the consolidated balance sheet. In certain instances, the Company is over-collateralized since the actual amount of collateral pledged exceeds the associated financial liability. As a result, the actual amount of collateral pledged that is reported in Other assets may be greater than the amount shown in the table above. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The impacts on the consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, 2021 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 1,023 $ (6,946) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 143 Three Months Ended September 30, 2020 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 256 $ (8,939) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 567 Nine Months Ended September 30, 2021 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 4,687 $ (22,254) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 113 Nine Months Ended September 30, 2020 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ (59,405) $ (17,260) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 10,774 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The impacts on the consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, 2021 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 1,023 $ (6,946) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 143 Three Months Ended September 30, 2020 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 256 $ (8,939) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 567 Nine Months Ended September 30, 2021 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 4,687 $ (22,254) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 113 Nine Months Ended September 30, 2020 Recognized in Earnings Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ (59,405) $ (17,260) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ 10,774 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The fo llowing tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020, and the level within the fair value hierarchy: Level 1 Level 2 Level 3 Balance at September 30, 2021 Level 1 Level 2 Level 3 Balance at December 31, 2020 Other assets: Trading interest rate caps (a) $ — $ 13,314 $ — $ 13,314 $ — $ 4,617 $ — $ 4,617 Cash flow hedging interest rate swaps (a) — — — $ — — 123 — $ 123 Available-for-sale-debt securities (b) — 90,688 — $ 90,688 — 95,654 — $ 95,654 Retail installment contracts (c)(d) — 3,774 2,396 $ 6,170 — — 5,614 $ 5,614 Other liabilities: Trading options for interest rate caps (a) — 13,314 — $ 13,314 — 4,617 — $ 4,617 Cash flow hedging interest rate swaps (a) — — — $ — — 70,589 — $ 70,589 Trading interest rate swaps (a) — 8,085 — $ 8,085 — 12,934 — $ 12,934 (a) The valuation is determined using widely accepted valuation techniques including a DCF on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurement of its derivatives. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and guarantees. The Company utilizes the exception in ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for instruments (Note 9). (b) The Company's AFS debt securities includes U.S. Treasury securities that are valued utilizing observable market quotes. The Company obtains vendor trading platform data (actual prices) from a number of live data sources, including active market makers and interdealer brokers and its securities are therefore, classified as Level 2. (c) The fair values of the retail installment contracts are estimated using a DCF model and are classified as Level 3. As of September 30, 2021, the Company had used the most recent purchase price as the fair value for certain loans and hence classified those retail installment contracts as Level 2. Changes in the fair value are recorded in investment gains (losses), net in the consolidated statement of income. (d) The aggregate fair value of retail installment contracts in non-accrual status, as of September 30, 2021 and December 31, 2020, is $541 a nd $1,129, respectively. |
Changes in Level 3 Balances, Assets | The following table presents the changes in retail installment contracts held for investment balances classified as Level 3 balances for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Balance — beginning of year $ 2,841 $ 10,585 $ 5,614 $ 4,719 Additions / issuances 1,171 — 1,171 2,512 Transfer from level 2 (a) — — — 17,634 Net collection activities (1,616) (2,410) (4,389) (16,854) Gains recognized in earnings — 73 — 237 Balance — end of year $ 2,396 $ 8,248 $ 2,396 $ 8,248 (a) The Company transferred retail installment contracts from Level 2 to Level 3 during the three months ended March 31, 2020 because the fair value for these assets could not be determined by using readily observable inputs at March 31, 2020. There we re no other material transfers in or out of Level 3 during the three months ended September 30, 2020 and during the three and nine months ended September 30, 2021. |
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at September 30, 2021 and December 31, 2020, respectively: Nine Months Ended September 30, 2021 Year Ended December 31, 2020 Total Lower of cost or fair value expense Total Lower of cost or fair value expense Other assets — vehicles (a) $ 269,627 $ — $ 311,557 $ — Personal loans held for sale (b) — — 893,479 355,136 Retail installment contracts held for sale (c) 359,561 — 674,048 $ 7,385 Auto loans impaired due to bankruptcy (d) 204,594 — 191,785 — ( a) The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market levels of used car prices. (b) The estimated fair value for personal loans held for sale is calculated based on the lower of market participant view and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions. The lower of cost or fair value adjustment for personal loans held for sale includes customer default activity and adjustments related to the net change in the portfolio balance during the reporting period. On March 31, 2021, the Company sold the personal lending portfolio. Refer to Note 1 – “Description of Business, Basis of Presentation, and Accounting Principles” to these Condensed Consolidated Financial Statements for more information. (c) The estimated fair value is calculated based on a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including expected default rates, prepayment rates, recovery rates, and discount rates reflective of the cost of funds and appropriate rate of returns. (d) For loans that are considered collateral-dependent, such as certain bankruptcy loans, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. For the underlying collateral, the estimated fair value is obtained using historical auction rates and current market levels of used car prices. No additional lower of cost or fair value expense was recorded for the nine months ended September 30, 2021. |
Quantitative Information About Significant Unobservable Inputs for Liabilities Measured at Fair Value | The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at September 30, 2021 and December 31, 2020, respective ly: Financial Instruments Fair Value at September 30, 2021 Valuation Technique Unobservable Inputs Range (weighted average) (a) Financial Assets: Retail installment contracts held for investment $ 2,396 Discounted Cash Flow Discount Rate 7%-13% (9%) Default Rate 4%-10% (7%) Prepayment Rate 4%-15% (15%) Loss Severity Rate 50%-60% (56%) Retail installment contracts held for sale $ 359,561 Discounted Cash Flow Discount Rate 1% - 2% (2%) Default Rate 4% - 10% (7%) Prepayment Rate 15% - 20% (17%) Loss Severity Rate 50% - 55% (52%) (a) Weighted average was developed by weighting the associated relative unpaid principal balances. Financial Instruments Fair Value at December 31, 2020 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 5,614 Discounted Cash Flow Discount Rate 7%-11% Default Rate 4%-20% Prepayment Rate 15%-25% Loss Severity Rate 50%-60% Personal loans held for sale $ 893,479 Lower of Market or Income Approach Market Approach Market Participant View 60%-70% Income Approach Discount Rate 20%-30% Default Rate 35%-45% Net Principal & Interest Payment Rate 65%-75% Loss Severity Rate 90%-95% Retail installment contracts held for sale $ 674,048 Discounted Cash Flow Discount Rate 1.5% - 2.5% Default Rate 2% - 4% Prepayment Rate 10% - 20% Loss Severity Rate 50% - 60% |
Summary of Fair Value Estimates, Methods and Assumptions | The following tables present the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at September 30, 2021 and December 31, 2020, and the level within the fair value hierarchy: September 30, 2021 December 31, 2020 Carrying Estimated Level 1 Level 2 Level 3 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 2,106,405 $ 2,106,405 $ 2,106,405 $ — $ — $ 109,053 $ 109,053 $ 109,053 $ — $ — Finance receivables held for investment, net (b) 27,272,976 29,878,212 — 47,691 29,830,521 26,806,606 29,464,066 — — 29,464,066 Restricted cash (a) 2,248,667 2,248,667 2,248,667 — — 2,221,094 2,221,094 2,221,094 — — Investments in debt securities held to maturity (c) 101,815 102,449 — 102,449 — 44,841 45,606 — 45,606 — Total $ 31,729,863 $ 34,335,733 $ 4,355,072 $ 150,140 $ 29,830,521 $ 29,181,594 $ 31,839,819 $ 2,330,147 $ 45,606 $ 29,464,066 Liabilities: Notes Payable: Facilities with third parties (d) $ — $ — $ — $ — $ — $ 4,159,955 $ 4,159,955 $ — $ — $ 4,159,955 Secured structured financings (e) 28,831,858 29,089,183 — 24,644,581 4,444,602 26,177,401 26,673,970 — 18,291,898 8,382,072 Facilities with Santander and related subsidiaries (f) 9,600,000 9,798,720 — — 9,798,720 10,801,318 11,333,823 — — 11,333,823 Total $ 38,431,858 $ 38,887,903 $ — $ 24,644,581 $ 14,243,322 $ 41,138,674 $ 42,167,748 $ — $ 18,291,898 $ 23,875,850 (a) Cash and cash equivalents and restricted cash — The carrying amount of cash and cash equivalents, including restricted cash, is at an approximated fair value as the instruments mature within 90 days or less and bear interest at market rates. (b) Finance receivables held for investment, net — Finance receivables held for investment, net are carried at amortized cost, net of an allowance. These receivables exclude retail installment contracts that are measured at fair value on a recurring and nonrecurring basis. The estimated fair value for the underlying financial instruments is determined as follows: • Retail installment contracts held for investment and purchased receivables - credit deteriorated — The estimated fair value for certain finance receivables at September 30, 2021 is based on the most recent purchase price and hence has classified these amounts as Level 2. The estimated fair value of these remaining finance receivables at September 30, 2021 is estimated using a DCF model, and such receivables are classified as Level 3. • Finance lease receivables — Finance lease receivables are carried at gross investments, net of unearned income and allowance for lease losses. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. (c) Investments in debt securities held to maturity - Investments in debt securities held to maturity are recorded at amortized cost and are priced by third-party pricing vendors. The third-party vendors use a variety of methods when pricing these securities that incorporate relevant observable market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. These investment securities are, therefore, considered Level 2. (d) Notes payable — facilities with third parties — The carrying amount of notes payable related to revolving credit facilities is estimated to approximate fair value. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. (e) Notes payable — secured structured financings — The estimated fair value of notes payable related to secured structured financings is calculated based on market observable prices and spreads for the Company’s publicly traded debt and market observed prices of similar notes issued by the Company, or recent market transactions involving similar debt with similar credit risks, which are considered Level 2 inputs. The estimated fair value of notes payable related to privately issued amortizing notes is calculated based on a combination of credit enhancement review, discounted cash flow analysis and review of market observable spreads for similar liabilities. In conducting this analysis, the Company uses significant unobservable inputs on key assumptions, which are considered Level 3 inputs. (f) Notes payable — facilities with Santander and related subsidiaries — The carrying amount of floating rate notes payable to a related party is estimated to approximate fair value as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. The fair value premium/discount of the fixed rate promissory notes are derived from changes in the Company’s unsecured cost of funds since the time of issuance and weighted average life of these notes. |
Investment Gains (Losses), Net
Investment Gains (Losses), Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Gains (Losses), Net | Investment gains (losses), net was comprised of the following for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Gain (loss) on sale of loans and leases $ 2,003 $ (13,669) $ 19,412 $ (40,553) Lower of cost or market adjustments — (56,598) (31,848) (241,198) Other gains, net 3,238 1,278 5,379 1,754 $ 5,241 $ (68,989) $ (7,057) $ (279,997) |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Earnings per Common Share | The following table represents EPS numbers for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Earnings per common share Net income (loss) $ 763,324 $ 490,115 $ 2,563,181 $ 389,450 Weighted average number of common shares outstanding (in thousands) 306,093 310,150 306,086 321,276 Earnings per common share $ 2.49 $ 1.58 $ 8.37 $ 1.21 Earnings per common share - assuming dilution Net income (loss) $ 763,324 $ 490,115 $ 2,563,181 $ 389,450 Weighted average number of common shares outstanding (in thousands) 306,093 310,150 306,086 321,276 Effect of employee stock-based awards (in thousands) 286 157 268 216 Weighted average number of common shares outstanding - assuming dilution (in thousands) 306,379 310,307 306,354 321,492 Earnings per common share - assuming dilution $ 2.49 $ 1.58 $ 8.37 $ 1.21 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Liabilities for Commitments and Contingencies | The following table summarizes liabilities recorded for commitments and contingencies as of September 30, 2021 and December 31, 2020, all of which are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets: Agreement or Legal Matter Commitment or Contingency September 30, 2021 December 31, 2020 MPLFA Revenue-sharing and gain/(loss), net-sharing payments $ 70,675 $ 43,778 Agreement with Bank of America Servicer performance fee 462 1,200 Agreement with CBP Loss-sharing payments 286 181 Other Contingencies Consumer arrangements 29,070 22,155 Legal and regulatory proceedings Aggregate legal and regulatory liabilities 6,348 31,936 Total commitments and contingencies $ 106,841 $ 99,250 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Other information on the serviced auto loan and retail installment contract portfolios for SBNA as of September 30, 2021 and December 31, 2020 is as follows: September 30, 2021 December 31, 2020 Total serviced portfolio $ 135,532 $ 190,504 Cash collections due to owner 24,395 19,650 Servicing fees receivable 4,194 1,769 Other information related to the above transactions with SBNA is as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Origination and renewal fee income from SBNA $ — $ 451 $ — $ 2,473 Servicing fees expenses charged by SBNA 33 (9) 193 63 31, 2020 is as follows: September 30, 2021 December 31, 2020 Total serviced portfolio $ 243,531 $ — Origination and servicing fees receivable 342 — Revenue share reimbursement receivable 48 — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Options and Related Activity | A summary of the Company’s stock options and related activity as of and for the nine months ended September 30, 2021 is as follows: Shares Weighted Weighted Aggregate Options outstanding at January 1, 2021 169,369 $ 13.01 1.9 $ 1,543 Granted — — — — Exercised (77,885) 10.08 — 1,650 Expired — — — — Forfeited — — — — Other (a) — — — — Options outstanding at September 30, 2021 91,484 15.51 1.8 2,396 Options exercisable at September 30, 2021 91,484 $ 15.51 1.8 $ 2,396 Options expected to vest at September 30, 2021 — $ — 0 $ — (a) Represents stock options that were reinstated. |
Schedule of Nonvested Restricted Stock Units and Performance Stock Units Activity | A summary of the Company’s Restricted Stock Units and performance stock units and related activity as of and for the nine months ended September 30, 2021 is as follows: Shares Weighted Weighted Aggregate Outstanding as of January 1, 2021 367,012 $ 19.78 0.8 $ 8,082 Granted 438,435 27.71 — — Vested (401,549) 23.04 — 10,847 Forfeited/canceled (7,549) 14.67 — — Non-vested at September 30, 2021 396,349 $ 25.10 1.1 $ 16,528 |
Description of Business, Basi_3
Description of Business, Basis of Presentation, and Accounting Policies - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2021segment | Aug. 31, 2021$ / shares | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of reportable segments | segment | 1 | |
Private Placement | Noncontrolling Shareholders | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 41.50 | |
SHUSA | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Ownership percentage held in the Company | 80.20% | |
Public Shareholders | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Ownership percentage held in the Company | 19.80% |
Finance Receivables - Held for
Finance Receivables - Held for Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for investment, net | $ 27,483,741 | $ 27,004,005 |
Recurring | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans at fair value | 6,170 | 5,614 |
Purchased receivables - credit deteriorated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for investment, net | 1,440 | 6,197 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for investment, net | 27,461,064 | 26,975,368 |
Consumer Portfolio Segment | Recurring | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans at fair value | 6,170 | 5,614 |
Finance Leases Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance lease receivables | $ 21,237 | $ 22,440 |
Finance Receivables - Compositi
Finance Receivables - Composition of Held for Investment Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL | $ (5,699,698) | $ (6,110,633) |
Finance receivables held for investment, at amortized cost, net | 27,483,741 | 27,004,005 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for investment, at amortized cost, net | 27,461,064 | 26,975,368 |
Consumer Portfolio Segment | Non-TDR | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 28,779,433 | 28,977,299 |
ACL | (4,398,303) | (4,792,464) |
Discount/(premium) (net of subvention and participation) | 326,675 | 66,373 |
Capitalized origination costs and fees | 98,549 | 97,638 |
Finance receivables held for investment, at amortized cost, net | $ 24,806,354 | $ 24,348,846 |
ACL as a percentage of unpaid principal balance | 15.30% | 16.50% |
ACL and discount as a percentage of unpaid principal balance | 14.10% | 16.30% |
Consumer Portfolio Segment | TDR | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 3,952,344 | $ 3,945,040 |
ACL | (1,297,841) | (1,314,170) |
Discount/(premium) (net of subvention and participation) | (3,601) | (8,389) |
Capitalized origination costs and fees | 3,808 | 4,041 |
Finance receivables held for investment, at amortized cost, net | $ 2,654,710 | $ 2,626,522 |
ACL as a percentage of unpaid principal balance | 32.80% | 33.30% |
ACL and discount as a percentage of unpaid principal balance | 32.90% | 33.50% |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule Of Financing Receivables [Line Items] | |||||
Purchase of portfolios of finance receivables held for investment | $ 13,816,075,000 | $ 12,782,253,000 | |||
Loans classified as non-performing, period for classification (in days) | 60 days | ||||
Loans Acquired Individually | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Unpaid principal balance | $ 112,061,000 | $ 0 | $ 112,061,000 | 0 | |
Purchase of portfolios of finance receivables held for investment | 67,018,000 | 0 | 67,018,000 | 0 | |
Chrysler Capital Loans | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Purchase of portfolios of finance receivables held for investment | $ 11,125,634,000 | $ 11,145,890,000 | |||
Chrysler Capital Loans | Credit Concentration Risk | Accounts Receivable | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 53.00% | 61.00% | |||
Consumer Portfolio Segment | Nonperforming Financial Instruments | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Financing receivable, purchased with credit deterioration, amount at par value | 42,264,000 | $ 0 | $ 42,264,000 | $ 76,878,000 | |
Loans classified as non-performing, period for classification (in days) | 60 days | ||||
Consumer Portfolio Segment | Geographic Concentration Risk | Borrower Location | Texas | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 17.00% | ||||
Consumer Portfolio Segment | Geographic Concentration Risk | Borrower Location | Florida | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 11.00% | ||||
Consumer Portfolio Segment | Geographic Concentration Risk | Borrower Location | California | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 8.00% | ||||
Consumer Portfolio Segment | Geographic Concentration Risk | Borrower Location | Georgia | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 5.00% | ||||
Consumer Portfolio Segment | Geographic Concentration Risk | Borrower Location | Other States (less than 5%) | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 5.00% | ||||
Consumer Portfolio Segment | Commercial Fleet Contracts | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Unpaid principal balance | $ 973,205,000 | $ 973,205,000 | $ 864,680,000 |
Finance Receivables - Schedule
Finance Receivables - Schedule of Carrying Values of Finance Receivables Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivable held for sale | $ 359,561 | $ 1,567,527 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivable held for sale | 359,561 | 674,048 |
Consumer Portfolio Segment | Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivable held for sale | $ 0 | $ 893,479 |
Finance Receivables - Schedul_2
Finance Receivables - Schedule of Sales of Retail Installment Contracts and Charged-off Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sales of charged-off assets to third parties | $ 0 | $ 9,144 | $ 13,901 | $ 30,019 |
Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal amount sold on loans securitized | 277,898 | 636,301 | 2,968,467 | 1,148,587 |
Consumer Portfolio Segment | Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal amount sold on loans securitized | $ 0 | $ 0 | $ 1,253,746 | $ 0 |
Allowance for Credit Loss and_3
Allowance for Credit Loss and Credit Quality - Activity in Loan Loss Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance — beginning of period | $ 6,110,633 | |||
Credit loss expense/(benefit) | $ 42,058 | $ 340,548 | (85,484) | $ 2,110,331 |
Balance — end of period | 5,699,698 | 5,699,698 | ||
Non-TDR | Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance — beginning of period | 4,299,670 | 4,818,187 | 4,792,464 | 2,123,878 |
Credit loss expense/(benefit) | 188,195 | 24,841 | (252,963) | 1,526,545 |
Charge-offs | (427,659) | (334,938) | (1,356,482) | (1,955,706) |
Recoveries | 338,097 | 392,042 | 1,215,284 | 1,174,942 |
Balance — end of period | 4,398,303 | 4,900,132 | 4,398,303 | 4,900,132 |
Non-TDR | Cumulative Effect, Period of Adoption, Adjustment | Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance — beginning of period | 0 | 2,030,473 | ||
TDR | Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance — beginning of period | 1,514,994 | 1,037,628 | 1,314,170 | 914,718 |
Credit loss expense/(benefit) | (144,772) | 314,075 | 169,268 | 581,344 |
Charge-offs | (206,111) | (200,352) | (599,083) | (617,536) |
Recoveries | 133,730 | 97,171 | 413,486 | 298,163 |
Balance — end of period | $ 1,297,841 | $ 1,248,522 | 1,297,841 | 1,248,522 |
TDR | Cumulative Effect, Period of Adoption, Adjustment | Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance — beginning of period | $ 0 | $ 71,833 |
Allowance for Credit Loss and_4
Allowance for Credit Loss and Credit Quality - RICs and Delinquencies, Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, allowance for credit loss, period increase (decrease) | $ (119,000) | $ (410,000) | |
Financing receivable, nonperforming loans, period for classification (in days) | 60 days | ||
Commercial Portfolio Segment | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, nonperforming loans, period for classification (in days) | 90 days | ||
Consumer Portfolio Segment | |||
Financing Receivable, Past Due [Line Items] | |||
Financing receivable, recorded investment, 90 days past due and still accruing | $ 78,880 |
Allowance for Credit Loss and_5
Allowance for Credit Loss and Credit Quality - Summary of Delinquencies (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 33,183,439 | $ 33,114,638 |
Accrued interest receivable | 323,469 | 415,765 |
Financial Asset Originated and Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Past Due [Line Items] | ||
Accrued interest receivable | 63,205 | 73,794 |
Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 33,157,000 | 33,082,000 |
Accrued interest receivable | 323,000 | 416,000 |
Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 3,361,381 | $ 3,011,763 |
Total delinquent principal, percent | 10.10% | 9.10% |
Financial Asset, Past Due | Purchased Receivables Portfolios - credit deteriorated | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 801 | $ 1,128 |
Financial Asset, Past Due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 3,360,580 | 3,010,635 |
30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 2,254,308 | $ 1,972,453 |
Total delinquent principal, percent | 6.80% | 6.00% |
30-59 days past due | Purchased Receivables Portfolios - credit deteriorated | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 401 | $ 687 |
30-59 days past due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 2,253,907 | 1,971,766 |
Over 59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,107,073 | $ 1,039,310 |
Total delinquent principal, percent | 3.30% | 3.10% |
Over 59 days | Purchased Receivables Portfolios - credit deteriorated | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 400 | $ 441 |
Over 59 days | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 1,106,673 | $ 1,038,869 |
Allowance for Credit Loss and_6
Allowance for Credit Loss and Credit Quality - Retail Installment Contracts Held for Investment on Nonaccrual Status (Details) - Consumer Portfolio Segment - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | $ 1,210,126 | $ 1,133,047 |
Non-accrual loans with no allowance | 204,595 | 191,785 |
Interest income recognized on nonaccrual loans (YTD) | $ 73,021 | $ 108,546 |
Non-accrual loans as a percent of total amortized cost | 3.70% | 3.50% |
Non-TDR | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | $ 818,292 | $ 748,026 |
Non-accrual loans with no allowance | 157,314 | 145,287 |
Interest income recognized on nonaccrual loans (YTD) | $ 46,445 | $ 72,926 |
Non-accrual loans as a percent of total amortized cost | 2.50% | 2.30% |
TDR | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | $ 391,834 | $ 385,021 |
Non-accrual loans with no allowance | 47,281 | 46,498 |
Interest income recognized on nonaccrual loans (YTD) | $ 26,576 | $ 35,620 |
Non-accrual loans as a percent of total amortized cost | 1.20% | 1.20% |
Allowance for Credit Loss and_7
Allowance for Credit Loss and Credit Quality - Credit Risk Profile (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment [Line Items] | ||
Total | $ 33,183,439 | $ 33,114,638 |
Accrued interest receivable | 323,469 | 415,765 |
Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | 12,713,000 | |
2020 | 9,003,000 | 14,617,000 |
2019 | 5,751,000 | 8,775,000 |
2018 | 3,210,000 | 4,979,000 |
2017 | 1,314,000 | 2,228,000 |
2016 | 725,000 | 1,363,000 |
Prior/2015 | 441,000 | 828,000 |
Prior | 292,000 | |
Total | $ 33,157,000 | $ 33,082,000 |
Total % | 100.00% | 100.00% |
Accrued interest receivable | $ 323,000 | $ 416,000 |
No FICO | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | 1,603,000 | |
2020 | 1,173,000 | 1,760,000 |
2019 | 738,000 | 1,151,000 |
2018 | 337,000 | 530,000 |
2017 | 266,000 | 501,000 |
2016 | 112,000 | 247,000 |
Prior/2015 | 50,000 | 128,000 |
Prior | 26,000 | |
Total | $ 4,279,000 | $ 4,343,000 |
Total % | 12.90% | 13.10% |
FICO Band Less than 540 | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | $ 1,573,000 | |
2020 | 1,306,000 | $ 1,789,000 |
2019 | 948,000 | 1,370,000 |
2018 | 608,000 | 913,000 |
2017 | 283,000 | 454,000 |
2016 | 151,000 | 263,000 |
Prior/2015 | 125,000 | 186,000 |
Prior | 90,000 | |
Total | $ 4,994,000 | $ 5,065,000 |
Total % | 15.10% | 15.30% |
FICO Band 540-599 | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | $ 4,364,000 | |
2020 | 3,038,000 | $ 4,269,000 |
2019 | 2,030,000 | 3,005,000 |
2018 | 1,134,000 | 1,736,000 |
2017 | 413,000 | 673,000 |
2016 | 234,000 | 423,000 |
Prior/2015 | 156,000 | 264,000 |
Prior | 96,000 | |
Total | $ 11,369,000 | $ 10,466,000 |
Total % | 34.30% | 31.70% |
FICO Band 600-639 | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | $ 2,828,000 | |
2020 | 1,831,000 | $ 2,759,000 |
2019 | 1,182,000 | 1,838,000 |
2018 | 625,000 | 990,000 |
2017 | 201,000 | 335,000 |
2016 | 123,000 | 230,000 |
Prior/2015 | 65,000 | 126,000 |
Prior | 47,000 | |
Total | $ 6,855,000 | $ 6,325,000 |
Total % | 20.70% | 19.10% |
FICO Band Greater than 640 | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | $ 2,345,000 | |
2020 | 1,655,000 | $ 4,040,000 |
2019 | 853,000 | 1,411,000 |
2018 | 506,000 | 810,000 |
2017 | 151,000 | 265,000 |
2016 | 105,000 | 200,000 |
Prior/2015 | 45,000 | 124,000 |
Prior | 33,000 | |
Total | $ 5,660,000 | $ 6,883,000 |
Total % | 17.00% | 20.80% |
Allowance for Credit Loss and_8
Allowance for Credit Loss and Credit Quality - Troubled Debt Restructurings, Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDR principal | $ 0 | $ 0 |
Consumer Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDR principal | $ 3,980,920,000 | $ 4,011,780,000 |
Trouble debt restructuring, number of days past due considered subsequently defaulted | 120 days |
Allowance for Credit Loss and_9
Allowance for Credit Loss and Credit Quality - Summary of TDRs (Details) - Consumer Portfolio Segment - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding recorded investment | $ 3,980,920 | $ 4,011,780 |
Impairment | (1,297,841) | (1,314,170) |
Amortized cost including accrued interest, net of impairment | 2,683,079 | 2,697,610 |
Collateral Dependent | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding recorded investment | 56,200 | 67,900 |
TDR write down | $ 8,900 | $ 21,400 |
Allowance for Credit Loss an_10
Allowance for Credit Loss and Credit Quality - Delinquent TDRs (Details) - Consumer Portfolio Segment - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Total TDR principal | $ 3,980,920 | $ 4,011,780 |
Equal to or greater than 30 days past due | ||
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Total TDR principal | 1,126,477 | 982,336 |
30-59 days past due | ||
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Total TDR principal | 744,637 | 637,560 |
Over 59 days | ||
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Total TDR principal | $ 381,840 | $ 344,776 |
Allowance for Credit Loss an_11
Allowance for Credit Loss and Credit Quality - Average Recorded Investment and Income Recognized on TDR Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Interest income recognized | $ 1,215,121 | $ 1,300,694 | $ 3,749,264 | $ 3,811,113 |
Consumer Portfolio Segment | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Average amortized cost (including accrued interest) | 4,142,089 | 3,960,119 | 4,203,685 | 3,802,823 |
Consumer Portfolio Segment | TDR | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Interest income recognized | $ 212,073 | $ 165,637 | $ 635,188 | $ 457,642 |
Allowance for Credit Loss an_12
Allowance for Credit Loss and Credit Quality - Financial Effects of TDRs (Details) - Consumer Portfolio Segment $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized cost (including accrued interest) before TDR | $ 219,898 | $ 317,455 | $ 1,326,077 | $ 1,399,813 |
Amortized cost (including accrued interest) after TDR (a) | $ 220,679 | $ 319,027 | $ 1,333,257 | $ 1,417,480 |
Number of contracts | contract | 12,063 | 14,620 | 67,354 | 69,786 |
Allowance for Credit Loss an_13
Allowance for Credit Loss and Credit Quality - Defaults in Loan Modifications Accounted for as TDRs (Details) - Consumer Portfolio Segment $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized cost (including accrued interest) in TDRs that subsequently defaulted | $ | $ 91,260 | $ 83,002 | $ 283,914 | $ 183,871 |
Number of contracts | contract | 4,724 | 4,379 | 14,496 | 10,467 |
Leases (SC as Lessor) - Summary
Leases (SC as Lessor) - Summary of Leased Vehicles (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Leased vehicles | $ 20,032,832 | $ 22,056,063 |
Less: accumulated depreciation | (3,920,416) | (4,796,595) |
Depreciated net capitalized cost | 16,112,416 | 17,259,468 |
Manufacturer subvention payments, net of accretion | (700,783) | (934,381) |
Origination fees and other costs | 117,977 | 66,020 |
Net book value | $ 15,529,610 | $ 16,391,107 |
Leases (SC as Lessor) - Future
Leases (SC as Lessor) - Future Minimum Rental Payments Due to Lessor under Operating Leases (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 910,739 |
2022 | 2,101,818 |
2023 | 1,363,807 |
2024 | 286,598 |
2025 | 25,093 |
Thereafter | 1,295 |
Total | $ 4,689,350 |
Leases (SC as Lessor) - Summa_2
Leases (SC as Lessor) - Summary of Finance Lease Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Gross investment in finance leases | $ 33,498 | $ 34,461 |
Origination fees and other | 283 | 289 |
Less: unearned income | (8,990) | (8,311) |
Net investment in finance leases before allowance | 24,791 | 26,439 |
Less: allowance for lease losses | (3,554) | (3,999) |
Net investment in finance leases | $ 21,237 | $ 22,440 |
Leases (SC as Lessor) - Futur_2
Leases (SC as Lessor) - Future Minimum Rental Receivable under Finance Leases (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 2,688 |
2022 | 10,275 |
2023 | 8,547 |
2024 | 6,509 |
2025 | 4,054 |
Thereafter | 1,425 |
Total | $ 33,498 |
Other Assets - Summary (Details
Other Assets - Summary (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Jun. 30, 2019 | May 31, 2013 | Sep. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||||
Vehicles | $ 269,627 | $ 311,557 | ||
Manufacturer subvention payments receivable | 29,361 | 57,996 | ||
Upfront fee | 47,015 | 69,286 | ||
Derivative - collateral | 23,037 | 92,132 | ||
Operating leases (Right-of-use-assets) | 61,590 | 46,441 | ||
Available-for-sale debt securities | 90,688 | 95,654 | ||
Held-to-maturity debt securities | 101,874 | 44,875 | ||
Equity securities not held for trading | 2,671 | 1,380 | ||
Prepaids | 35,152 | 45,667 | ||
Accounts receivable | 28,737 | 34,607 | ||
Federal and State tax receivable | 76,113 | 99,666 | ||
Other | 32,418 | 68,725 | ||
Other assets | 811,597 | 972,726 | ||
Upfront fee | $ 60,000 | $ 150,000 | ||
Finance and other interest income amortization period | 10 years | |||
Third Party | ||||
Derivative [Line Items] | ||||
Derivative assets (third party) at fair value | $ 13,314 | $ 4,740 |
Other Assets - Operating Leases
Other Assets - Operating Leases, Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets - $6,956 and $14,451 held at affiliates, respectively | Other assets - $6,956 and $14,451 held at affiliates, respectively | |||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities - $2,368 and $463 held at affiliates, respectively | Other liabilities - $2,368 and $463 held at affiliates, respectively | |||
Lease expense | $ 3,084 | $ 3,479 | $ 9,577 | $ 10,586 | |
Operating cash flows from operating leases | 12,863 | $ 12,947 | |||
Equity securities not held for trading | $ 2,671 | $ 2,671 | $ 1,380 | ||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease renewal term (in years) | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease renewal term (in years) | 15 years | 15 years |
Other Assets - Supplemental Inf
Other Assets - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Assets, Leases And Investments [Abstract] | ||
Operating leases-right of use assets | $ 61,590 | $ 46,441 |
Other liabilities | $ 77,854 | $ 64,927 |
Weighted average lease term (in years) | 6 years 2 months 12 days | 5 years 6 months |
Weighted average discount rate | 2.70% | 3.40% |
Other Assets - Maturity of Oper
Other Assets - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Assets, Leases And Investments [Abstract] | ||
2021 | $ 4,078 | |
2022 | 17,409 | |
2023 | 14,343 | |
2024 | 14,313 | |
2025 | 14,397 | |
Thereafter | 18,029 | |
Total | 82,569 | |
Less: Interest | (4,715) | |
Present value of lease liabilities | $ 77,854 | $ 64,927 |
Other Assets - Amortized Cost,
Other Assets - Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of AFS and HTM Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-sale debt securities (US Treasury securities) | ||
Amortized cost (before unrealized gains / losses) | $ 89,437 | |
Gross Unrealized gain | 1,251 | |
Gross Unrealized loss | 0 | |
Fair value | 90,688 | $ 95,654 |
Held-to-maturity debt securities (Asset-Backed Notes) | ||
Total | 101,815 | |
Gross Unrealized gain | 634 | |
Gross Unrealized loss | 0 | |
Fair value | $ 102,449 |
Other Assets - Contractual Matu
Other Assets - Contractual Maturities of AFS and HTM Debt Securities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Amortized cost | |
Due within one year | $ 66,924 |
Due after one year but within 5 years | 22,513 |
Due after 5 year but within 10 years | 0 |
Total | 89,437 |
Fair value | |
Due within one year | 67,650 |
Due after one year but within 5 years | 23,038 |
Due after 5 year but within 10 years | 0 |
Total | 90,688 |
Amortized cost | |
Due within one year | 0 |
Due after one year but within 5 years | 48,200 |
Due after 5 year but within 10 years | 53,615 |
Total | 101,815 |
Fair value | |
Due within one year | 0 |
Due after one year but within 5 years | 48,491 |
Due after 5 year but within 10 years | 53,958 |
Total | $ 102,449 |
Variable Interest Entities - On
Variable Interest Entities - On-balance Sheet Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Assets | |||
Restricted cash | $ 2,248,667 | $ 2,221,094 | $ 2,267,154 |
Finance receivables held for sale, net | 359,561 | 1,567,527 | |
Finance receivables held for investment, net | 27,483,741 | 27,004,005 | |
Leased vehicles, net | 15,529,610 | 16,391,107 | |
Various other assets | 811,597 | 972,726 | |
TOTAL ASSETS | 49,074,450 | 48,887,493 | |
Liabilities | |||
Notes payable | 38,431,858 | 41,138,674 | |
Various other liabilities | 299,422 | 331,693 | |
TOTAL LIABILITIES | 41,141,720 | 43,265,532 | |
Variable Interest Entity, Primary Beneficiary | |||
Assets | |||
Restricted cash | 1,682,654 | 1,737,021 | |
Finance receivables held for sale, net | 113,313 | 581,938 | |
Finance receivables held for investment, net | 21,785,308 | 22,572,549 | |
Leased vehicles, net | 15,529,610 | 16,391,107 | |
Various other assets | 706,130 | 791,306 | |
TOTAL ASSETS | 39,817,015 | 42,073,921 | |
Liabilities | |||
Notes payable | 30,632,558 | 31,700,709 | |
Various other liabilities | 107,743 | 84,922 | |
TOTAL LIABILITIES | $ 30,740,301 | $ 31,785,631 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Variable Interest Entity, Primary Beneficiary | |||||
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |||||
Gross retail installment contracts transferred and serviced | $ 26,079,950,000 | $ 26,079,950,000 | $ 27,658,182,000 | ||
Receivables securitized | 7,095,782,000 | $ 5,282,901,000 | 18,457,441,000 | $ 15,845,707,000 | |
VIE, Not Primary Beneficiary | |||||
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |||||
Gross retail installment contracts transferred and serviced | 2,754,314,000 | 2,754,314,000 | $ 2,226,786,000 | ||
Receivables securitized | 0 | $ 636,301,000 | 1,891,278,000 | 1,148,587,000 | |
Off-balance securitizations gain (loss) | 7,233,000 | $ (40,553,000) | |||
Cash proceeds received for assets derecognized | $ 0 | $ 0 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Cash Flows Received from Securitization Trusts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Receivables securitized | $ 7,095,782 | $ 5,282,901 | $ 18,457,441 | $ 15,845,707 |
Net proceeds from new securitizations | 6,591,786 | 4,662,211 | 16,168,394 | 11,470,857 |
Net proceeds from retained bonds | 0 | 1,293 | 195,967 | 57,286 |
Cash received for servicing fees | 228,194 | 242,245 | 686,789 | 735,533 |
Net distributions from Trusts | 1,391,970 | 1,173,276 | 4,435,605 | 2,730,657 |
Total cash received from Trusts | 8,211,950 | 6,079,025 | 21,486,755 | 14,994,333 |
VIE, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Receivables securitized | 0 | 636,301 | 1,891,278 | 1,148,587 |
Net proceeds from new securitizations | 0 | 592,455 | 1,779,532 | 1,052,541 |
Cash received for servicing fees | 8,041 | 6,598 | 24,061 | 17,856 |
Total cash received from Trusts | $ 8,041 | $ 599,053 | $ 1,803,593 | $ 1,070,397 |
Variable Interest Entities - Of
Variable Interest Entities - Off-balance Sheet Variable Interest Entities Portfolio (Details) - VIE, Not Primary Beneficiary - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Total serviced | $ 2,754,314 | $ 2,226,786 |
Third party SCART serviced securitizations | ||
Variable Interest Entity [Line Items] | ||
Total serviced | 2,067,156 | 929,429 |
Third party CCAP serviced securitizations | ||
Variable Interest Entity [Line Items] | ||
Total serviced | 0 | 82,713 |
Santander | ||
Variable Interest Entity [Line Items] | ||
Total serviced | $ 687,158 | $ 1,214,644 |
Debt - Total Borrowings and Oth
Debt - Total Borrowings and Other Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total borrowings and other debt obligations | $ 38,431,858 | $ 41,138,674 |
Secured Structured Financings | ||
Debt Instrument [Line Items] | ||
Notes Payable — Secured Structured Financings | 28,831,858 | 26,177,401 |
Secured Structured Financings | Parent | ||
Debt Instrument [Line Items] | ||
Notes Payable — Secured Structured Financings | 28,831,858 | 26,177,401 |
Facilities with third parties | ||
Debt Instrument [Line Items] | ||
Notes payable | 0 | 4,159,955 |
Facilities with Santander and related subsidiaries | ||
Debt Instrument [Line Items] | ||
Notes payable | 9,600,000 | 10,800,000 |
Notes Payable - Facilities with Santander and Related Subsidiaries | $ 9,600,000 | $ 10,801,318 |
Debt - Schedule of Credit Facil
Debt - Schedule of Credit Facilities (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Total revolving credit facilities | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | $ 9,600,000,000 | $ 14,959,955,000 |
Committed Amount | 24,350,000,000 | 25,717,967,000 |
Assets Pledged | 1,814,935,000 | 7,063,398,000 |
Restricted Cash Pledged | 565,000 | 2,886,000 |
Facilities with third parties | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | 4,159,955,000 |
Committed Amount | 11,750,000,000 | 11,917,967,000 |
Assets Pledged | 1,814,935,000 | 7,063,398,000 |
Restricted Cash Pledged | 565,000 | 2,886,000 |
Warehouse line, due June 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | |
Committed Amount | $ 500,000,000 | |
Effective Rate | 0.00% | |
Assets Pledged | $ 367,404,000 | |
Restricted Cash Pledged | 0 | |
Warehouse line, due August 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | |
Committed Amount | $ 500,000,000 | |
Effective Rate | 1.50% | |
Assets Pledged | $ 159,348,000 | |
Restricted Cash Pledged | 0 | |
Warehouse line, due March 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | |
Committed Amount | $ 1,250,000,000 | |
Effective Rate | 0.00% | |
Assets Pledged | $ 246,480,000 | |
Restricted Cash Pledged | 1,000 | |
Warehouse line, due March 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 942,845,000 | |
Committed Amount | $ 1,250,000,000 | |
Effective Rate | 1.34% | |
Assets Pledged | $ 1,621,206,000 | |
Restricted Cash Pledged | 1,000 | |
Warehouse line, due October 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | 1,000,600,000 |
Committed Amount | $ 1,500,000,000 | $ 1,500,000,000 |
Effective Rate | 0.00% | 1.85% |
Assets Pledged | $ 121,046,000 | $ 639,875,000 |
Restricted Cash Pledged | 0 | 0 |
Warehouse line, due October 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | 441,143,000 |
Committed Amount | $ 3,500,000,000 | $ 3,500,000,000 |
Effective Rate | 0.00% | 3.45% |
Assets Pledged | $ 133,429,000 | $ 2,057,758,000 |
Restricted Cash Pledged | 0 | 0 |
Warehouse line, due October 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | 168,300,000 |
Committed Amount | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 0.00% | 3.07% |
Assets Pledged | $ 13,409,000 | $ 243,649,000 |
Restricted Cash Pledged | 500,000 | 1,201,000 |
Warehouse line, due October 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | 845,800,000 |
Committed Amount | $ 2,100,000,000 | $ 2,100,000,000 |
Effective Rate | 0.00% | 3.29% |
Assets Pledged | $ 175,624,000 | $ 1,156,885,000 |
Restricted Cash Pledged | 64,000 | 0 |
Warehouse line, due January 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | |
Committed Amount | $ 1,000,000,000 | |
Effective Rate | 0.00% | |
Assets Pledged | $ 477,840,000 | |
Restricted Cash Pledged | 0 | |
Warehouse line, due January 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 415,700,000 | |
Committed Amount | $ 1,000,000,000 | |
Effective Rate | 1.81% | |
Assets Pledged | $ 595,518,000 | |
Restricted Cash Pledged | 0 | |
Warehouse line, due November 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | 177,600,000 |
Committed Amount | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 0.00% | 1.18% |
Assets Pledged | $ 279,703,000 | $ 371,959,000 |
Restricted Cash Pledged | 0 | 0 |
Warehouse line, due July 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | 0 |
Committed Amount | $ 900,000,000 | $ 900,000,000 |
Effective Rate | 0.00% | 1.46% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 1,684,000 |
Repurchase facility, due January 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 167,967,000 | |
Committed Amount | $ 167,967,000 | |
Effective Rate | 1.64% | |
Assets Pledged | $ 217,200,000 | |
Restricted Cash Pledged | 0 | |
Facilities with Santander and related subsidiaries | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 9,600,000,000 | 10,800,000,000 |
Committed Amount | 12,600,000,000 | 13,800,000,000 |
Assets Pledged | 0 | 0 |
Restricted Cash Pledged | 0 | 0 |
Fair value hedge adjustment | 0 | 1,300,000 |
Promissory Note, due December 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 250,000,000 | 250,000,000 |
Committed Amount | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 3.58% | 3.70% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due December 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 250,000,000 | 250,000,000 |
Committed Amount | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 3.82% | 3.95% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due December 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 250,000,000 | 250,000,000 |
Committed Amount | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 5.07% | 5.25% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due December 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 250,000,000 | 250,000,000 |
Committed Amount | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 4.83% | 5.00% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due May 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 250,000,000 | |
Committed Amount | $ 250,000,000 | |
Effective Rate | 2.25% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 0 | |
Promissory Note, due March 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 300,000,000 | |
Committed Amount | $ 300,000,000 | |
Effective Rate | 3.95% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 0 | |
Promissory Note, due May 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 350,000,000 | 350,000,000 |
Committed Amount | $ 350,000,000 | $ 350,000,000 |
Effective Rate | 3.67% | 3.80% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due November 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 400,000,000 | 400,000,000 |
Committed Amount | $ 400,000,000 | $ 400,000,000 |
Effective Rate | 2.90% | 3.00% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due April 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 450,000,000 | 450,000,000 |
Committed Amount | $ 450,000,000 | $ 450,000,000 |
Effective Rate | 5.92% | 6.13% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due June 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 500,000,000 | 500,000,000 |
Committed Amount | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 3.19% | 3.30% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note due July 2024 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 500,000,000 | 500,000,000 |
Committed Amount | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 3.77% | 3.90% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due March 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 650,000,000 | 650,000,000 |
Committed Amount | $ 650,000,000 | $ 650,000,000 |
Effective Rate | 4.06% | 4.20% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due August 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 650,000,000 | |
Committed Amount | $ 650,000,000 | |
Effective Rate | 3.44% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 0 | |
Promissory Note due September 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 750,000,000 | 750,000,000 |
Committed Amount | $ 750,000,000 | $ 750,000,000 |
Effective Rate | 3.17% | 3.27% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due May 2025 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 1,000,000,000 | 1,000,000,000 |
Committed Amount | $ 1,000,000,000 | $ 1,000,000,000 |
Effective Rate | 3.86% | 3.99% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due June 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 2,000,000,000 | 2,000,000,000 |
Committed Amount | $ 2,000,000,000 | $ 2,000,000,000 |
Effective Rate | 2.03% | 1.40% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Promissory Note, due September 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 2,000,000,000 | 2,000,000,000 |
Committed Amount | $ 2,000,000,000 | $ 2,000,000,000 |
Effective Rate | 1.01% | 1.04% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Line of credit, due July 2021 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | 0 |
Committed Amount | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 2.08% | 2.08% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
Line of credit, due March 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | |
Committed Amount | $ 2,500,000,000 | |
Effective Rate | 3.28% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | $ 0 | |
Line of credit, due March 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 0 | |
Committed Amount | $ 2,500,000,000 | |
Effective Rate | 3.28% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | $ 0 |
Debt - Facilities with Santande
Debt - Facilities with Santander and Related Subsidiaries, Narrative (Details) | Sep. 30, 2021USD ($) |
Revolving credit facilities | Facilities with Santander and related subsidiaries | |
Line of Credit Facility [Line Items] | |
Committed amount | $ 500,000,000 |
Unsecured debt | Facilities with Santander and related subsidiaries | |
Line of Credit Facility [Line Items] | |
Committed amount | 5,600,000,000 |
Unsecured debt | Facilities with Santander | |
Line of Credit Facility [Line Items] | |
Committed amount | $ 4,000,000,000 |
Debt - Summary of Secured Struc
Debt - Summary of Secured Structured Financings (Details) - Secured Structured Financings - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Balance | $ 28,831,858 | $ 26,177,401 |
Initial Note Amounts Issued | 60,591,058 | 55,523,298 |
Collateral | 38,160,613 | 36,254,700 |
Restricted Cash | 1,682,089 | 1,734,136 |
Public securitizations | ||
Debt Instrument [Line Items] | ||
Balance | 24,657,131 | 18,942,160 |
Initial Note Amounts Issued | 51,829,495 | 44,775,735 |
Collateral | 31,403,177 | 25,022,577 |
Restricted Cash | 1,665,870 | 1,710,351 |
2016 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | 259,078 | |
Initial Note Amounts Issued | 2,519,810 | |
Collateral | 354,985 | |
Restricted Cash | $ 85,041 | |
2016 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.63% | |
2016 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.34% | |
2017 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | 118,293 | $ 1,049,867 |
Initial Note Amounts Issued | 3,889,470 | 8,262,940 |
Collateral | 564,070 | 1,661,845 |
Restricted Cash | $ 90,895 | $ 211,606 |
2017 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.35% | 1.35% |
2017 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.52% | 2.52% |
2018 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,606,743 | $ 2,723,099 |
Initial Note Amounts Issued | 11,000,280 | 12,039,840 |
Collateral | 2,510,723 | 4,130,936 |
Restricted Cash | $ 264,577 | $ 376,246 |
2018 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.41% | 2.41% |
2018 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 3.42% | 3.42% |
2019 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 4,249,645 | $ 6,653,226 |
Initial Note Amounts Issued | 11,924,720 | 11,924,720 |
Collateral | 5,788,406 | 8,582,241 |
Restricted Cash | $ 466,789 | $ 488,546 |
2019 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.08% | 2.08% |
2019 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 3.34% | 3.34% |
2020 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 5,629,703 | $ 8,256,890 |
Initial Note Amounts Issued | 10,028,425 | 10,028,425 |
Collateral | 7,256,352 | 10,292,570 |
Restricted Cash | $ 364,410 | $ 548,912 |
2020 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 0.60% | 0.60% |
2020 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.73% | 2.73% |
2021 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 13,052,747 | |
Initial Note Amounts Issued | 14,986,600 | |
Collateral | 15,283,626 | |
Restricted Cash | $ 479,199 | |
2021 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 0.48% | |
2021 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 0.65% | |
Privately issued amortizing notes | ||
Debt Instrument [Line Items] | ||
Balance | $ 4,174,727 | $ 7,235,241 |
Initial Note Amounts Issued | 8,761,563 | 10,747,563 |
Collateral | 6,757,436 | 11,232,123 |
Restricted Cash | 16,219 | 23,785 |
2013 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | 230,404 | 777,210 |
Initial Note Amounts Issued | $ 1,537,025 | $ 1,537,025 |
Initial Weighted Average Interest Rate | 1.28% | 1.28% |
Collateral | $ 1,015,024 | $ 1,843,443 |
Restricted Cash | 751 | 751 |
2018 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | 1,452,711 | 2,768,145 |
Initial Note Amounts Issued | 2,200,002 | 4,186,002 |
Collateral | 2,111,645 | 4,223,567 |
Restricted Cash | $ 0 | $ 7,675 |
2018 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.42% | 2.42% |
2018 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 3.17% | 3.53% |
2019 Private issuance | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,517,437 | $ 2,584,974 |
Initial Note Amounts Issued | 3,524,536 | 3,524,536 |
Collateral | 2,300,073 | 3,632,833 |
Restricted Cash | $ 10,566 | $ 10,457 |
2019 Private issuance | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.45% | 2.45% |
2019 Private issuance | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 3.90% | 3.90% |
2020 Private issuance | ||
Debt Instrument [Line Items] | ||
Balance | $ 974,175 | $ 1,104,912 |
Initial Note Amounts Issued | 1,500,000 | 1,500,000 |
Collateral | 1,330,694 | 1,532,280 |
Restricted Cash | $ 4,902 | $ 4,902 |
2020 Private issuance | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.29% | 1.29% |
2020 Private issuance | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.68% | 2.68% |
Debt - Secured Structured Finan
Debt - Secured Structured Financings, Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||||
Private issuance notes secured with vehicle lease | $ 6,600,000 | $ 6,600,000 | $ 8,700,000 | ||
Amortized debt issuance costs | 13,213 | $ 10,265 | 37,100 | $ 28,301 | |
Interest expense on secured structured financing | $ 103,511 | $ 150,734 | $ 342,168 | $ 522,266 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Aug. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | ||||
Share repurchase program, authorized amount | $ 1,100,000,000 | |||
Number of shares withheld to cover income taxes related to vesting of RSUs (in shares) | 57,425,382 | 57,067,635 | ||
Treasury stock value | $ 1,311,339,000 | $ 1,301,864,000 | ||
Number of shares withheld for income tax (in shares) | 0 | |||
Noncontrolling Shareholders | Private Placement | ||||
Class of Stock [Line Items] | ||||
Sale of stock, price per share (in dollars per share) | $ 41.50 | |||
Total value of sale of stock | $ 12,700,000,000 |
Shareholders' Equity - Tender O
Shareholders' Equity - Tender Offer and Other Share Repurchase Programs (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares purchased (in shares) | 0 | 10,198,800 | 357,747 | 33,471,268,000 |
Average price per share (in dollars per share) | $ 0 | $ 21.91 | $ 26.46 | $ 23.14 |
Cost of share purchased | $ 0 | $ 223,485 | $ 9,468 | $ 774,457 |
Tender Offer | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares purchased (in shares) | 0 | 0 | 0 | 17,514,707 |
Average price per share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 26 |
Cost of share purchased | $ 0 | $ 0 | $ 0 | $ 455,382 |
Other Share Repurchases | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares purchased (in shares) | 0 | 10,198,800 | 357,747 | 15,956,561 |
Average price per share (in dollars per share) | $ 0 | $ 21.91 | $ 26.46 | $ 20 |
Cost of share purchased | $ 0 | $ 223,485 | $ 9,468 | $ 319,075 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 7,229,630 | $ 4,895,465 | $ 5,621,961 | $ 7,318,620 |
Other comprehensive income (loss) before reclassifications (gross) | 414 | 94 | 2,603 | (43,212) |
Amounts (gross) reclassified out of accumulated other comprehensive income (loss) | 5,247 | 6,729 | 16,769 | 13,023 |
Ending balance | 7,932,730 | 5,094,812 | 7,932,730 | 5,094,812 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (36,855) | (63,705) | (50,566) | (26,693) |
Ending balance | $ (31,194) | $ (56,882) | $ (31,194) | $ (56,882) |
Shareholders' Equity - Reclassi
Shareholders' Equity - Reclassification of Amounts Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||
Interest expense | $ 218,747 | $ 292,118 | $ 709,479 | $ 929,934 |
Income tax expense | (208,607) | (172,476) | (775,484) | (137,161) |
Net income | 763,324 | 490,115 | 2,563,181 | 389,450 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||
Net income | 5,247 | 6,729 | 16,769 | 13,023 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||||
Interest expense | 6,946 | 8,939 | 22,254 | 17,260 |
Income tax expense | $ (1,699) | $ (2,210) | $ (5,485) | $ (4,237) |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) | 1 Months Ended |
Aug. 31, 2021$ / shares | |
Equity [Abstract] | |
Dividends paid per share (in dollars per share) | $ 0.22 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Underlying Notional Amounts and Aggregate Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Asset | $ 13,314 | $ 4,740 |
Liability | (21,399) | (88,140) |
Interest rate swaps | Not Designated As Hedges | ||
Derivative [Line Items] | ||
Notional | 250,000 | 250,000 |
Asset | 0 | 0 |
Liability | (8,085) | (12,934) |
Interest rate swaps | Cash Flow Hedging | Designated as Hedges | ||
Derivative [Line Items] | ||
Notional | 0 | 2,450,000 |
Asset | 0 | 123 |
Liability | 0 | (70,589) |
Interest rate cap agreements | ||
Derivative [Line Items] | ||
Notional | 7,649,971 | 10,199,134 |
Asset | 13,314 | 4,617 |
Liability | 0 | 0 |
Options for interest rate cap agreements | ||
Derivative [Line Items] | ||
Notional | 7,649,971 | 10,199,134 |
Asset | 0 | 0 |
Liability | $ (13,314) | $ (4,617) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Assets Presented in the Consolidated Balance Sheet | $ 13,314 | $ 4,740 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 0 |
Total derivative assets | 13,314 | 4,740 |
Total financial assets | 13,314 | 4,740 |
Collateral Received | (13,314) | (4,740) |
Collateral Received, Total financial assets | (13,314) | (4,740) |
Net Amount | 0 | 0 |
Net Amount, Total derivative assets | 0 | 0 |
Net Amount, Total financial assets | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Liabilities Presented in the Consolidated Balance Sheet | 21,399 | 88,140 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 0 |
Total derivative liabilities | 21,399 | 88,140 |
Total financial liabilities | 21,399 | 88,140 |
Collateral Pledged | (15,304) | (88,140) |
Collateral Pledged, Total financial liabilities | (15,304) | (88,140) |
Net Amount | 6,095 | 0 |
Net Amount, Total derivative liabilities | 6,095 | 0 |
Net Amount, Total financial liabilities | 6,095 | 0 |
Interest rate swaps | Third Party | ||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Assets Presented in the Consolidated Balance Sheet | 123 | |
Collateral Received | (123) | |
Net Amount | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Liabilities Presented in the Consolidated Balance Sheet | 8,085 | 83,523 |
Collateral Pledged | (8,085) | (83,523) |
Net Amount | 0 | 0 |
Interest rate caps | ||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Total derivative assets | 13,314 | 4,617 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Total derivative liabilities | 0 | 0 |
Interest rate caps | Third Party | ||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Assets Presented in the Consolidated Balance Sheet | 10,980 | 4,154 |
Collateral Received | (10,980) | (4,154) |
Net Amount | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Liabilities Presented in the Consolidated Balance Sheet | 10,980 | 4,154 |
Collateral Pledged | (4,885) | (4,154) |
Net Amount | 6,095 | 0 |
Interest rate caps | Santander and Affiliates | ||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Assets Presented in the Consolidated Balance Sheet | 2,334 | 463 |
Collateral Received | (2,334) | (463) |
Net Amount | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Liabilities Presented in the Consolidated Balance Sheet | 2,334 | 463 |
Collateral Pledged | (2,334) | (463) |
Net Amount | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 36 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Derivative [Line Items] | |||||
Estimated unrealized gain to be reclassified from AOCI to interest expense in next 12 months | $ 24,259 | $ 24,259 | |||
Interest Rate Swaps | |||||
Derivative [Line Items] | |||||
Fair value adjustment | 6,500 | ||||
Reclassification from AOCI into earnings | 50,600 | ||||
Reclassification from AOCI for terminated swaps | 7,900 | ||||
Interest Rate Swaps | Designated as Hedges | |||||
Derivative [Line Items] | |||||
Reclassification from AOCI into earnings | $ (6,946) | $ (8,939) | $ (22,254) | $ (17,260) | |
Interest Rate Swaps | Designated as Hedges | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Aggregate notional amount | $ 2,200,000 | ||||
Interest Rate Swaps | Minimum | Designated as Hedges | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Derivative term (in years) | 2 years | ||||
Interest Rate Swaps | Maximum | Designated as Hedges | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Derivative term (in years) | 5 years |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Details) - Interest Rate Swaps - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Gross amount Reclassified From Accumulated Other Comprehensive Income to Interest Expense | $ 50,600 | |||
Designated as Hedges | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in Earnings | 0 | $ 0 | $ 0 | $ 0 |
Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | 1,023 | 256 | 4,687 | (59,405) |
Gross amount Reclassified From Accumulated Other Comprehensive Income to Interest Expense | (6,946) | (8,939) | (22,254) | (17,260) |
Not Designated As Hedges | Interest Expense | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in Earnings | $ 143 | $ 567 | $ 113 | $ 10,774 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | $ 90,688 | $ 95,654 |
Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | 90,688 | 95,654 |
Retail installment contracts, non-accrual status | 6,170 | 5,614 |
Retail installment contracts, non-accrual status | 541 | 1,129 |
Recurring | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 13,314 | 4,617 |
Recurring | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 8,085 | 12,934 |
Recurring | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 123 |
Other liabilities | 0 | 70,589 |
Recurring | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 13,314 | 4,617 |
Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | 0 | 0 |
Retail installment contracts, non-accrual status | 0 | 0 |
Recurring | Level 1 | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Recurring | Level 1 | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 0 | 0 |
Recurring | Level 1 | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Other liabilities | 0 | 0 |
Recurring | Level 1 | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | 90,688 | 95,654 |
Retail installment contracts, non-accrual status | 3,774 | 0 |
Recurring | Level 2 | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 13,314 | 4,617 |
Recurring | Level 2 | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 8,085 | 12,934 |
Recurring | Level 2 | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 123 |
Other liabilities | 0 | 70,589 |
Recurring | Level 2 | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 13,314 | 4,617 |
Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | 0 | 0 |
Recurring | Level 3 | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Recurring | Level 3 | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 0 | 0 |
Recurring | Level 3 | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 0 | 0 |
Other liabilities | 0 | 0 |
Recurring | Level 3 | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Change in Level 3 Balances (Details) - Loans Receivable - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance — beginning of year | $ 2,841 | $ 10,585 | $ 5,614 | $ 4,719 |
Additions / issuances | 1,171 | 0 | 1,171 | 2,512 |
Transfers from level 2 | 0 | 0 | 0 | 17,634 |
Net collection activities | (1,616) | (2,410) | (4,389) | (16,854) |
Gains recognized in earnings | 0 | 73 | 0 | 237 |
Balance — end of year | $ 2,396 | $ 8,248 | $ 2,396 | $ 8,248 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Vehicles | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 269,627 | $ 311,557 |
Lower of cost or fair value expense | 0 | 0 |
Personal loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Personal loans held for sale | 0 | 893,479 |
Lower of cost or fair value expense | 0 | 355,136 |
Retail installment contracts held-for-sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Personal loans held for sale | 359,561 | 674,048 |
Lower of cost or fair value expense | 0 | 7,385 |
Auto loans impaired due to bankruptcy | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 204,594 | 191,785 |
Lower of cost or fair value expense | $ 0 | $ 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Quantitative Information for Assets and Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retail installment contracts, non-accrual status | $ 6,170 | $ 5,614 |
Retail installment contracts held for investment | Level 3 | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retail installment contracts, non-accrual status | $ 2,396 | $ 5,614 |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.07 | 0.07 |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.13 | 0.11 |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Discount Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.09 | |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Default Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.04 | 0.04 |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Default Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.10 | 0.20 |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Default Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.07 | |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Prepayment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.04 | 0.15 |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Prepayment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.15 | 0.25 |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Prepayment Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.15 | |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Loss Severity Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.50 | 0.50 |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Loss Severity Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.60 | 0.60 |
Retail installment contracts held for investment | Level 3 | Discounted Cash Flow | Loss Severity Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-investment, measurement input | 0.56 | |
Personal loans held for sale | Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value disclosure | $ 0 | $ 893,479 |
Personal loans held for sale | Level 3 | Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value disclosure | $ 893,479 | |
Personal loans held for sale | Level 3 | Market Approach | Market Participant View | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.60 | |
Personal loans held for sale | Level 3 | Market Approach | Market Participant View | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.70 | |
Personal loans held for sale | Level 3 | Income Approach | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.20 | |
Personal loans held for sale | Level 3 | Income Approach | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.30 | |
Personal loans held for sale | Level 3 | Income Approach | Default Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.35 | |
Personal loans held for sale | Level 3 | Income Approach | Default Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.45 | |
Personal loans held for sale | Level 3 | Income Approach | Loss Severity Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.90 | |
Personal loans held for sale | Level 3 | Income Approach | Loss Severity Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.95 | |
Personal loans held for sale | Level 3 | Income Approach | Net Principal & Interest Payment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.65 | |
Personal loans held for sale | Level 3 | Income Approach | Net Principal & Interest Payment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.75 | |
Retail installment contracts held-for-sale | Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value disclosure | 359,561 | $ 674,048 |
Retail installment contracts held-for-sale | Level 3 | Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, fair value disclosure | $ 359,561 | $ 674,048 |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.01 | 0.015 |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.02 | 0.025 |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Discount Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.02 | |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Default Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.04 | 0.02 |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Default Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.10 | 0.04 |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Default Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.07 | |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Prepayment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.15 | 0.10 |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Prepayment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.20 | 0.20 |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Prepayment Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.17 | |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Loss Severity Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.50 | 0.50 |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Loss Severity Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.55 | 0.60 |
Retail installment contracts held-for-sale | Level 3 | Discounted Cash Flow | Loss Severity Rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held-for-sale, measurement input | 0.52 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Summary of Fair Value Estimates, Methods and Assumptions (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Investments in debt securities held to maturity | $ 101,815 | |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 2,106,405 | $ 109,053 |
Finance receivables held for investment, net | 27,272,976 | 26,806,606 |
Restricted cash | 2,248,667 | 2,221,094 |
Investments in debt securities held to maturity | 101,815 | 44,841 |
Total | 31,729,863 | 29,181,594 |
Liabilities: | ||
Notes payable — facilities with third parties | 0 | 4,159,955 |
Notes payable — secured structured financings | 28,831,858 | 26,177,401 |
Notes payable — facilities with Santander and related subsidiaries | 9,600,000 | 10,801,318 |
Total | 38,431,858 | 41,138,674 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 2,106,405 | 109,053 |
Finance receivables held for investment, net | 29,878,212 | 29,464,066 |
Restricted cash | 2,248,667 | 2,221,094 |
Investments in debt securities held to maturity | 102,449 | 45,606 |
Total | 34,335,733 | 31,839,819 |
Liabilities: | ||
Notes payable — facilities with third parties | 0 | 4,159,955 |
Notes payable — secured structured financings | 29,089,183 | 26,673,970 |
Notes payable — facilities with Santander and related subsidiaries | 9,798,720 | 11,333,823 |
Total | 38,887,903 | 42,167,748 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 2,106,405 | 109,053 |
Finance receivables held for investment, net | 0 | 0 |
Restricted cash | 2,248,667 | 2,221,094 |
Investments in debt securities held to maturity | 0 | 0 |
Total | 4,355,072 | 2,330,147 |
Liabilities: | ||
Notes payable — facilities with third parties | 0 | 0 |
Notes payable — secured structured financings | 0 | 0 |
Notes payable — facilities with Santander and related subsidiaries | 0 | 0 |
Total | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Finance receivables held for investment, net | 47,691 | 0 |
Restricted cash | 0 | 0 |
Investments in debt securities held to maturity | 102,449 | 45,606 |
Total | 150,140 | 45,606 |
Liabilities: | ||
Notes payable — facilities with third parties | 0 | 0 |
Notes payable — secured structured financings | 24,644,581 | 18,291,898 |
Notes payable — facilities with Santander and related subsidiaries | 0 | 0 |
Total | 24,644,581 | 18,291,898 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Finance receivables held for investment, net | 29,830,521 | 29,464,066 |
Restricted cash | 0 | 0 |
Investments in debt securities held to maturity | 0 | 0 |
Total | 29,830,521 | 29,464,066 |
Liabilities: | ||
Notes payable — facilities with third parties | 0 | 4,159,955 |
Notes payable — secured structured financings | 4,444,602 | 8,382,072 |
Notes payable — facilities with Santander and related subsidiaries | 9,798,720 | 11,333,823 |
Total | $ 14,243,322 | $ 23,875,850 |
Investment Gains (Losses), Ne_2
Investment Gains (Losses), Net - Schedule of Investment Gains (Losses), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gain (loss) on sale of loans and leases | $ 2,003 | $ (13,669) | $ 19,412 | $ (40,553) |
Lower of cost or market adjustments | 0 | (56,598) | (31,848) | (241,198) |
Other gains, net | 3,238 | 1,278 | 5,379 | 1,754 |
Investment gains (losses), net | $ 5,241 | $ (68,989) | $ (7,057) | $ (279,997) |
Investment Gains (Losses), Ne_3
Investment Gains (Losses), Net - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Lower of cost or market adjustment, customer default activity | $ 0 | $ 81,247,000 | $ 65,047,000 | $ 278,144,000 |
Lower of cost or market adjustment | $ 0 | $ 24,649,000 | $ (33,199,000) | $ 36,946,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 208,607,000 | $ 172,476,000 | $ 775,484,000 | $ 137,161,000 | |
Effective income tax rate | 21.50% | 26.00% | 23.20% | 26.00% | |
Related party income tax receivables | $ 642,000 | $ 642,000 | $ 11,191,000 | ||
Earnings that are considered indefinitely reinvested | $ 0 | $ 0 | $ 0 |
Computation of Basic and Dilu_3
Computation of Basic and Diluted Earnings per Common Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Awards excluded from computation of earnings per share (in shares) | 0 | 52,114 | 0 | 52,114 |
Computation of Basic and Dilu_4
Computation of Basic and Diluted Earnings per Common Share - Summary of Computation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings per common share | ||||
Net income | $ 763,324 | $ 490,115 | $ 2,563,181 | $ 389,450 |
Weighted average number of common shares outstanding (in shares) | 306,093,379 | 310,150,293 | 306,086,399 | 321,275,907 |
Earnings per common share (in dollars per share) | $ 2.49 | $ 1.58 | $ 8.37 | $ 1.21 |
Earnings per common share - assuming dilution | ||||
Net income | $ 763,324 | $ 490,115 | $ 2,563,181 | $ 389,450 |
Weighted average number of common shares outstanding (in shares) | 306,093,379 | 310,150,293 | 306,086,399 | 321,275,907 |
Effect of employee stock-based awards (in shares) | 286,000 | 157,000 | 268,000 | 216,000 |
Weighted average number of common shares outstanding - assuming dilution (in shares) | 306,378,733 | 310,307,265 | 306,354,463 | 321,492,331 |
Earnings per common share - assuming dilution (in dollars per share) | $ 2.49 | $ 1.58 | $ 8.37 | $ 1.21 |
Commitments and Contingencies -
Commitments and Contingencies - Liabilities for Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Total commitments and contingencies | $ 106,841 | $ 99,250 |
Consumer arrangements | ||
Loss Contingencies [Line Items] | ||
Contingencies | 29,070 | 22,155 |
Aggregate legal and regulatory liabilities | ||
Loss Contingencies [Line Items] | ||
Contingencies | 6,348 | 31,936 |
Revenue-sharing and gain/(loss), net-sharing payments | MPLFA | ||
Loss Contingencies [Line Items] | ||
Commitments | 70,675 | 43,778 |
Servicer performance fee | Bank of America | ||
Loss Contingencies [Line Items] | ||
Commitments | 462 | 1,200 |
Loss-sharing payments | CBP | ||
Loss Contingencies [Line Items] | ||
Commitments | $ 286 | $ 181 |
Commitments and Contingencies_2
Commitments and Contingencies - MPFLA (Details) - MPLFA - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Other Commitments [Line Items] | ||
Funding available for FCA retail financing | $ 4,500,000,000 | |
Minimum | ||
Other Commitments [Line Items] | ||
Funding available for dealer inventory financing | 5,000,000,000 | |
Revenue-sharing and gain/(loss), net-sharing payments | ||
Other Commitments [Line Items] | ||
Amount accrued for the payments | $ 70,675,000 | $ 43,778,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Agreement with Bank of America (Details) - Bank of America - USD ($) | Jan. 31, 2017 | Sep. 30, 2021 | Dec. 31, 2020 |
Other Commitments [Line Items] | |||
Commitment to sell loans | $ 300,000,000 | ||
Servicer performance payments due, period (in years) | 6 years | ||
Servicer performance fee | |||
Other Commitments [Line Items] | |||
Commitments | $ 462,000 | $ 1,200,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Agreement with CBP (Details) - CBP - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Other Commitments [Line Items] | ||
Loans servicing, loss-sharing payment percentage | 0.50% | |
Loss-sharing payments | ||
Other Commitments [Line Items] | ||
Commitments | $ 286 | $ 181 |
Commitments and Contingencies_5
Commitments and Contingencies - Other Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Consumer arrangements | ||
Other Commitments [Line Items] | ||
Accrual for miscellaneous contingencies | $ 29,070 | $ 22,155 |
Commitments and Contingencies_6
Commitments and Contingencies - Legal and Regulatory Proceedings (Details) - USD ($) | 1 Months Ended | ||
Jul. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Mississippi Attorney General Lawsuit | |||
Loss Contingencies [Line Items] | |||
Litigation settlement, amount awarded to other party | $ 3,700,000 | ||
Aggregate Legal and Regulatory Liabilities | |||
Loss Contingencies [Line Items] | |||
Contingencies | $ 6,348,000 | $ 31,936,000 | |
Maximum possible loss | $ 0 |
Commitments and Contingencies_7
Commitments and Contingencies - Agreements (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2015 | |
Other Commitments [Line Items] | |||||
Repurchase requests outstanding | $ 0 | ||||
Commitment to sell charged off loan receivables in bankruptcy sale | $ 350,000,000 | ||||
Sales subject to market price check | 275,000,000 | ||||
Remaining aggregate commitment to sell charged off loan receivables | 6,215,000 | $ 15,318,000 | |||
Bluestem | Purchase New Advances on Personal Revolving Finance Receivable | |||||
Other Commitments [Line Items] | |||||
Commitments | 2,700,000,000 | $ 3,000,000,000 | |||
Purchases of receivables | 300,000,000 | $ 1,200,000,000 | |||
Bluestem | Purchase Of Receivables Related To New Opened Customer Accounts | |||||
Other Commitments [Line Items] | |||||
Purchases of receivables | $ 24,865,000 | $ 151,163,000 |
Related-Party Transactions - Cr
Related-Party Transactions - Credit Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
SHUSA | |||||
Related Party Transaction [Line Items] | |||||
Interest expense for affiliate lines/letters of credit | $ 68,320 | $ 79,854 | $ 214,550 | $ 213,224 | |
Accrued interest for affiliate lines/letters of credit | 34,114 | 34,114 | $ 40,234 | ||
Santander | |||||
Related Party Transaction [Line Items] | |||||
Interest expense for affiliate lines/letters of credit | 11,587 | $ 7,997 | 35,266 | $ 8,700 | |
Accrued interest for affiliate lines/letters of credit | $ 1,472 | $ 1,472 | $ 1,603 |
Related-Party Transactions - De
Related-Party Transactions - Derivatives (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Collateral overage on derivative liabilities | $ 13,314,000 | $ 4,740,000 |
Santander and Affiliates | ||
Related Party Transaction [Line Items] | ||
Outstanding notional amount | 3,255,024,000 | 3,148,850,000 |
Collateral overage on derivative liabilities | $ 495,000 | $ 907,000 |
Related-Party Transactions - Re
Related-Party Transactions - Retail Installment Contracts and RV Marine (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Servicing fee income | $ 19,975 | $ 18,574 | $ 61,481 | $ 56,797 |
SBNA | Serviced Auto Loan and Retail Installment | ||||
Related Party Transaction [Line Items] | ||||
Servicing fee income | $ 317 | $ 472 | $ 1,070 | $ 1,566 |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Serviced Auto Loan and Retail Installment Contract Portfolio (Details) - SBNA - Serviced Auto Loan and Retail Installment - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Total serviced portfolio | $ 135,532 | $ 190,504 |
Cash collections due to owner | 24,395 | 19,650 |
Servicing fees receivable | $ 4,194 | $ 1,769 |
Related-Party Transactions - _2
Related-Party Transactions - Dealer Lending (Details) - SBNA - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Referral fee | $ 9,000,000 | ||||
Referral fee, amortization period (in years) | 10 years | ||||
Unamortized fee balance | $ 1,575,000 | $ 1,575,000 | $ 2,250,000 | ||
Income related to referral fee | 225,000 | $ 225,000 | 675,000 | $ 675,000 | |
Dealer Loan Portfolio | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 0 | 0 | 0 | ||
Loan Origination on Sales of Floorplan Inventory | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 5,431,000 | $ 5,431,000 | $ 7,548,000 |
Related-Party Transactions - _3
Related-Party Transactions - Schedule of Transactions with SBNA (Details) - SBNA - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Origination and Renewal Fees | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 0 | $ 451 | $ 0 | $ 2,473 |
Servicing Fees Expenses | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transaction with related party | $ 33 | $ (9) | $ 193 | $ 63 |
Related-Party Transactions - Or
Related-Party Transactions - Origination Support Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Servicing fee income | $ 19,975 | $ 18,574 | $ 61,481 | $ 56,797 |
SBNA | Serviced Consumer Vehicle Lease Portfolio | ||||
Related Party Transaction [Line Items] | ||||
Servicing fee income | 65 | 65 | ||
Affiliates | SBNA | Purchase of Retail Installment Contracts | ||||
Related Party Transaction [Line Items] | ||||
Additions to servicing asset | 1,500,000 | 1,100,000 | 6,100,000 | 3,900,000 |
Affiliates | SBNA | Referral and Servicing Fee | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 13,408 | 7,902 | 40,477 | 29,457 |
Due from related parties | $ 1,987 | $ 4,089 | $ 1,987 | $ 4,089 |
Related-Party Transactions - _4
Related-Party Transactions - Schedule of Consumer Vehicle Lease Portfolio Serviced for SBNA (Details) - SBNA - Serviced Consumer Vehicle Lease Portfolio - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Total serviced portfolio | $ 243,531 | $ 0 |
Origination and servicing fees receivable | 342 | 0 |
Revenue share reimbursement receivable | $ 48 | $ 0 |
Related-Party Transactions - Se
Related-Party Transactions - Securitizations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Servicing fee income from affiliates | $ 9,916 | $ 10,050 | $ 29,217 | $ 33,923 | |
Santander | |||||
Related Party Transaction [Line Items] | |||||
Servicing fee income from affiliates | 1,970 | 4,488 | 7,263 | 15,680 | |
Due from related parties | 614 | 614 | $ 1,070 | ||
Due to related parties | 4,789 | 4,789 | $ 6,203 | ||
Affiliates | SIS | Fees Paid for Co-Management of Certain Securitizations | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | $ 1,354 | $ 103 | $ 4,059 | $ 1,625 |
Related-Party Transactions - Em
Related-Party Transactions - Employee Compensation (Details) - SHUSA - Administrative Services - Affiliates - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 4,467 | $ 4,198 |
Due to related parties | $ 14,496 | $ 9,221 |
Related-Party Transactions - Ot
Related-Party Transactions - Other Related Party Transactions (Details) ft² in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2021USD ($) | Sep. 30, 2021USD ($)ft² | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)ft² | Sep. 30, 2021EUR (€) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||||
Deposit and checking accounts balance | $ 2,016,932,000 | $ 2,016,932,000 | $ 32,490,000 | ||||
AutoFi Inc. | Mouro Capital | |||||||
Related Party Transaction [Line Items] | |||||||
Noncontrolling interest, ownership percentage by parent | 10.30% | ||||||
Affiliates | SBNA | |||||||
Related Party Transaction [Line Items] | |||||||
Deposit and checking accounts balance | 2,016,932,000 | 2,016,932,000 | 32,490,000 | ||||
Collateralized financings | $ 6,808,000 | $ 6,808,000 | $ 27,000 | ||||
Affiliates | SBNA | Sublease of Corporate Office Space | |||||||
Related Party Transaction [Line Items] | |||||||
Area of property (in square foot) | ft² | 13 | 13 | |||||
Sublease income | $ 44,000 | $ 44,000 | $ 132,000 | $ 132,000 | |||
Affiliates | SBNA | Fee for Payments Made at Retail Branch Locations | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transaction with related party | 33,000 | 39,000 | 100,000 | 140,000 | |||
Affiliates | Santander | Procurement Services | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transaction with related party | 1,062,000 | 785,000 | 2,635,000 | 2,079,000 | |||
Affiliates | Santander | Professional Services, Telecommunications, and Internal/External Application | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transaction with related party | 0 | 279,000 | 0 | 350,000 | |||
Affiliates | SHUSA | |||||||
Related Party Transaction [Line Items] | |||||||
Cyber liability insurance, coverage limit | € | € 270 | ||||||
Affiliates | SHUSA | Allocated Portion of Insurance Premiums and Fees | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transaction with related party | 150,000 | 97,000 | 451,000 | 313,000 | |||
Affiliates | SHUSA | Various Other Insurance Products | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transaction with related party | $ 661,000 | $ 416,000 | $ 1,687,000 | $ 781,000 | |||
Affiliates | AutoFi Inc. | Payments for Design and Development of Digital Software, First Year | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transaction with related party | $ 6,000,000 | ||||||
Affiliates | AutoFi Inc. | Payments for Design and Development of Digital Software, After First Year | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transaction with related party | 2,400,000 | ||||||
Affiliates | AutoFi Inc. | Payments for Design and Development of Digital Software, After First Year | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses from transaction with related party | $ 3,000,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2013 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares issued (in shares) | 363,536,761 | 363,159,613 | |||
Expiration period (in years) | 10 years | ||||
Compensation expense paid | $ 8,989 | $ 6,161 | |||
MEP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares stock awards available for grant (in shares) | 29,000,000 | ||||
Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares issued (in shares) | 5,192,641 | ||||
Omnibus Incentive Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Transfer and sale restrictions period (in years) | 1 year | ||||
Omnibus Incentive Plan | RSUs | Certain Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period (in years) | 3 years | ||||
Omnibus Incentive Plan | RSUs | Vesting One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period (in years) | 3 years | ||||
Omnibus Incentive Plan | RSUs | Vesting Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period (in years) | 5 years |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Stock Options and Related Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Shares | ||
Options outstanding as of beginning of period (in shares) | 169,369 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (77,885) | |
Expired (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Other (in shares) | 0 | |
Options outstanding as of end of period (in shares) | 91,484 | 169,369 |
Options exercisable as of end of period (in shares) | 91,484 | |
Options expected to vest as of period end (in shares) | 0 | |
Weighted Average Exercise Price | ||
Options outstanding as of beginning of period (in dollars per share) | $ 13.01 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 10.08 | |
Expired (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Other (in dollars per share) | 0 | |
Options outstanding as of end of period (in dollars per share) | 15.51 | $ 13.01 |
Options exercisable, weighted average exercise price as of end of period (in dollars per share) | 15.51 | |
Options expected to vest, weighted average exercise price as of period end (in dollars per share) | $ 0 | |
Weighted Average Remaining Contractual Term (Years) | ||
Options outstanding (in years) | 1 year 9 months 18 days | 1 year 10 months 24 days |
Options exercisable (in years) | 1 year 9 months 18 days | |
Options expected to vest (in years) | 0 years | |
Aggregate Intrinsic Value | ||
Options outstanding as of beginning period | $ 1,543 | |
Exercised | 1,650 | |
Options outstanding as of end of period | 2,396 | $ 1,543 |
Options exercisable | 2,396 | |
Option expected to vest | $ 0 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Restricted Stock and Performance Stock Units (Details) - Restricted Stock and Performance Stock Units - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Shares | ||
Outstanding as of beginning of period (in shares) | 367,012 | |
Granted (in shares) | 438,435 | |
Vested (in shares) | (401,549) | |
Forfeited/canceled (in shares) | (7,549) | |
Outstanding as of end of period (in shares) | 396,349 | 367,012 |
Weighted Average Grant Date Fair Value | ||
Outstanding as of beginning of period (in dollars per share) | $ 19.78 | |
Granted (in dollars per share) | 27.71 | |
Vested (in dollars per share) | 23.04 | |
Forfeited/canceled (in dollars per share) | 14.67 | |
Outstanding as of end of period (in dollars per share) | $ 25.10 | $ 19.78 |
Weighted Average Remaining Contractual Term (Years) | ||
Option outstanding (in years) | 1 year 1 month 6 days | 9 months 18 days |
Aggregate Intrinsic Value | ||
Outstanding as of beginning of period | $ 8,082 | |
Vested | $ 10,847 | |
Unvested as of end of period | $ 16,528 |