Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 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) | 306,035,735 | |
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 | Q1 | |
Amendment Flag | true | |
Amendment Description | Santander Consumer USA Holdings Inc. ("SC" or the "Company") is filing this Amendment No. 1 on Form 10-Q/A for the quarter ended March 31, 2021 (the "Form 10-Q/A").This Form 10-Q/A amends the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, as originally filed with the Securities and Exchange Commission (the "SEC") on April 29, 2021 (the "Original Filing"). This Form 10-Q/A is being filed to restate our unaudited Condensed Consolidated Financial Statements for the three months ended March 31, 2021, to make corrections to the Condensed Consolidated Statements of Cash Flows in the Original Filing. The restatement of our financial statements in this Form 10-Q/A reflects the correction of errors for the classification of certain loan activities related to finance receivables held for sale and finance receivables held for investment within the Condensed Consolidated Statements of Cash Flows. Further explanation regarding the restatement is set forth in Note 1 to the unaudited Condensed Consolidated Financial Statements included in this Form 10-Q/A.The following sections in the Original Filing have been corrected in this Form 10-Q/A to reflect this restatement:•Part I - Item 1: Condensed Consolidated Financial Information•Part I - Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations•Part I - Item 4: Controls and Procedures•Part II - Item 6: ExhibitsOur principal executive officer and principal financial officer have also provided new certifications as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. The certifications are included in this Form 10-Q/A as Exhibits 31.1, 31.2, 32.1 and 32.2. For the convenience of the reader, this Form 10-Q/A sets forth the information in the Original Filing in its entirety, as such information is modified and superseded where necessary to reflect the restatement. Except as provided above, this Amendment does not reflect events occurring subsequent to the filing of the Original Filing and does not amend or otherwise update any information in the Original Filing. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents - $356,911 and $32,490 held at affiliates, respectively | $ 415,969 | $ 109,053 |
Finance receivables held for sale, net | 0 | 1,567,527 |
Finance receivables held for investment, at amortized cost | 32,090,201 | 33,114,638 |
Allowance for credit loss | (6,005,115) | (6,110,633) |
Finance receivables held for investment, at amortized cost, net | 26,085,086 | 27,004,005 |
Restricted cash - $27 and $27 held at affiliates, respectively | 2,623,565 | 2,221,094 |
Accrued interest receivable | 345,769 | 415,765 |
Goodwill | 74,056 | 74,056 |
Intangible assets, net of amortization of $68,013 and $63,488, respectively | 73,833 | 70,128 |
Other assets - $5,886 and $14,451 held at affiliates, respectively | 1,079,419 | 972,726 |
TOTAL ASSETS | 47,234,002 | 48,887,493 |
LIABILITIES | ||
Borrowings and other debt obligations - $10,501,060 and $10,801,318 to/from affiliates, respectively | 38,541,624 | 41,138,674 |
Deferred tax liabilities, net | 1,497,829 | 1,263,796 |
Accounts payable and accrued expenses - $83,994 and $80,428 held at affiliates, respectively | 567,474 | 531,369 |
Other liabilities - $1,438 and $463 held at affiliates, respectively | 395,222 | 331,693 |
TOTAL LIABILITIES | 41,002,149 | 43,265,532 |
Commitments and contingencies (Notes 7 and 14) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.01 par value - 1,100,000,000 shares authorized; 0 and 363,159,613 shares issued and 0 and 306,091,978 shares outstanding, respectively | 3,060 | 3,061 |
Additional paid-in capital | 387,946 | 393,800 |
Accumulated other comprehensive income (loss), net of taxes | (41,818) | (50,566) |
Retained earnings | 5,882,665 | 5,275,666 |
TOTAL STOCKHOLDERS' EQUITY | 6,231,853 | 5,621,961 |
TOTAL LIABILITIES AND EQUITY | 47,234,002 | 48,887,493 |
Leased Vehicles | ||
ASSETS | ||
Property, plant and equipment, net | 16,478,224 | 16,391,107 |
Furniture and Fixtures | ||
ASSETS | ||
Property, plant and equipment, net | $ 58,081 | $ 62,032 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents held for affiliates | $ 356,911 | $ 32,490 |
Restricted cash held for affiliates | 27 | 27 |
Accumulated depreciation | 106,292 | 104,452 |
Amortization | 68,013 | 63,488 |
Other assets held at affiliates | 5,886 | 14,451 |
LIABILITIES | ||
Total borrowings and other debt obligations from/to affiliates | 10,801,318 | |
Accounts payable and accrued expenses held at affiliates | 83,994 | 80,428 |
Other liabilities held at affiliates | $ 1,438 | $ 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) | 363,459,117 | 363,159,613 |
Common stock, shares outstanding (in shares) | 306,033,735 | 306,091,978 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Interest on finance receivables and loans | $ 1,304,651 | $ 1,273,819 |
Leased vehicle income | 740,884 | 747,979 |
Other finance and interest income | 1,426 | 7,551 |
Total finance and other interest income | 2,046,961 | 2,029,349 |
Interest expense — Including $85,904 and $62,770 to affiliates, respectively | 253,537 | 328,834 |
Leased vehicle expense | 423,795 | 552,912 |
Net finance and other interest income | 1,369,629 | 1,147,603 |
Credit loss expense | 136,209 | 907,887 |
Net finance and other interest income after credit loss expense | 1,233,420 | 239,716 |
Profit sharing | 67,326 | 14,295 |
Net finance and other interest income after credit loss expense and profit sharing | 1,166,094 | 225,421 |
Investment losses, net | (14,712) | (63,426) |
Servicing fee income — Including $9,197 and $12,552 from affiliates, respectively | 18,694 | 19,103 |
Fees, commissions, and other — Including $3,330 and $3,306 from affiliates, respectively | 100,528 | 95,130 |
Total other income | 104,510 | 50,807 |
Compensation and benefits | 153,895 | 133,326 |
Repossession expense | 45,346 | 57,662 |
Other expenses — Including $1,814 and $1,097 to affiliates, respectively | 95,251 | 91,685 |
Total operating expenses | 294,492 | 282,673 |
Income (loss) before income taxes | 976,112 | (6,445) |
Income tax expense | 234,457 | (2,458) |
Net income (loss) | 741,655 | (3,987) |
Other comprehensive income (loss): | ||
Unrealized gains (losses) on cash flow hedges, net of tax of $2,949 and $(12,543) respectively | 9,066 | (39,019) |
Unrealized gains (losses) on available-for-sale and held-to-maturity debt securities net of tax of $(103) and $661, respectively | (318) | 2,057 |
Comprehensive income (loss) | $ 750,403 | $ (40,949) |
Net income per common share (basic) (in dollars per share) | $ 2.42 | $ (0.01) |
Net income per common share (diluted) (in dollars per share) | 2.42 | (0.01) |
Dividends declared per common share (in dollars per share) | $ 0.44 | $ 0.22 |
Weighted average common shares (basic) (in shares) | 306,108,987 | 334,026,052 |
Weighted average common shares (diluted) (in shares) | 306,325,155 | 334,346,122 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Interest expense to affiliates | $ 85,904 | $ 62,770 |
Servicing fee income from affiliates | 9,197 | 12,552 |
Fees, commissions and other from affiliates | 3,330 | 3,306 |
Other operating costs to affiliates | 1,814 | 1,097 |
Change in unrealized gains (losses) on cash flow hedges, tax | 2,949 | (12,543) |
Unrealized gain/losses on available-for-sale securities, tax | $ (103) | $ 661 |
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 | $ (1,590,885) | $ 3,392 | $ 1,173,262 | $ (26,693) | $ 6,168,659 | $ (1,590,885) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued in connection with employee incentive compensation plans (in shares) | 277,000 | ||||||
Stock issued in connection with employee incentive compensation plans | (1,631) | $ 3 | (1,634) | ||||
Stock-based compensation expense | $ 4,038 | 4,038 | |||||
Stock repurchase/Treasury stock (in shares) | (18,361,168) | (18,361,000) | |||||
Stock repurchase/Treasury stock | $ (468,466) | $ (184) | (468,282) | ||||
Dividends-Common stock | (74,624) | (74,624) | |||||
Net income (loss) | (3,987) | (3,987) | |||||
Other comprehensive income (loss), net of taxes | (36,962) | (36,962) | |||||
Ending balance (in shares) at Mar. 31, 2020 | 321,118,000 | ||||||
Ending balance at Mar. 31, 2020 | $ 5,146,103 | $ 3,211 | 707,384 | (63,655) | 4,499,163 | ||
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) | 300,000 | ||||||
Stock issued in connection with employee incentive compensation plans | (1,829) | $ 3 | (1,832) | ||||
Stock-based compensation expense | $ 5,448 | 5,448 | |||||
Stock repurchase/Treasury stock (in shares) | (357,747) | (358,000) | |||||
Stock repurchase/Treasury stock | $ (9,474) | $ (4) | (9,470) | ||||
Dividends-Common stock | (134,656) | (134,656) | |||||
Net income (loss) | 741,655 | 741,655 | |||||
Other comprehensive income (loss), net of taxes | $ 8,748 | 8,748 | |||||
Ending balance (in shares) at Mar. 31, 2021 | 306,033,735 | 306,034,000 | |||||
Ending balance at Mar. 31, 2021 | $ 6,231,853 | $ 3,060 | $ 387,946 | $ (41,818) | $ 5,882,665 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 741,655 | $ (3,987) | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Derivative mark to market | (503) | 8,923 | |
Credit loss expense | 136,209 | 907,887 | |
Depreciation, amortization and accretion | 477,423 | 564,878 | |
Originations and purchases of receivables held for sale | 0 | ||
Proceeds from sales and collections on receivables held for sale | [1] | 1,333,954 | 24,263 |
Investment losses, net | 14,712 | 63,426 | |
Stock-based compensation | 5,448 | 4,038 | |
Deferred tax expense/(benefit) | 231,187 | (4,798) | |
Net change in: | |||
Revolving personal loans | 34,246 | 19,012 | |
Other assets | 80,933 | (43,309) | |
Other liabilities | 97,634 | (145,217) | |
Net cash provided by operating activities | 3,152,898 | 1,395,116 | |
Cash flows from investing activities: | |||
Originations and purchases of portfolios on finance receivables held for investment | (4,492,802) | (3,939,255) | |
Collections on finance receivables held for investment | 3,610,444 | 3,294,442 | |
Proceeds from sales of finance receivables held for sale, originated as held for investment | [2] | 1,812,552 | 0 |
Leased vehicles purchased | (2,172,167) | (2,030,936) | |
Manufacturer and Dealer incentives | 15,354 | 170,800 | |
Proceeds from sale of leased vehicles | 1,497,995 | 941,551 | |
Change in revolving personal loans, net | 31,121 | 28,478 | |
Proceeds from repayments and maturities of held-to-maturity securities | 6,318 | 0 | |
Purchases of furniture and equipment | (3,496) | (7,508) | |
Sales of furniture and equipment | 1,332 | 1 | |
Net cash provided by (used in) investing activities | 306,651 | (1,542,427) | |
Cash flows from financing activities: | |||
Proceeds from borrowings and other debt obligations, net of debt issuance costs - $2,200,000 and $1,835,000 from affiliates, respectively | 9,081,404 | 11,374,959 | |
Payments on borrowings and other debt obligations - $(2,500,000) and $(1,835,000) to affiliates, respectively | (11,687,888) | (10,357,462) | |
Proceeds from stock option exercises, gross | 452 | 409 | |
Shares repurchased | (9,474) | (468,466) | |
Dividends paid | (134,656) | (74,624) | |
Net cash provided by (used in) financing activities | (2,750,162) | 474,816 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 709,387 | 327,505 | |
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 | 3,039,534 | 2,488,592 | |
Supplemental cash flow information: | |||
Cash and cash equivalents | 415,969 | 501,588 | |
Restricted cash | 2,623,565 | 1,987,004 | |
Total cash, cash equivalents and restricted cash | $ 3,039,534 | $ 2,488,592 | |
[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 | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash flows from financing activities: | |||
Proceeds from borrowings and other debt obligations, net of debt issuance costs, from affiliates | $ 2,200,000 | $ 1,835,000 | |
Payments on borrowings and other debt obligations, to affiliates | (2,500,000) | (1,835,000) | |
Proceeds from sales and collections on receivables held for sale | [1] | 1,333,954 | 24,263 |
Proceeds from sales of finance receivables held for sale, originated as held for investment | [2] | 1,812,552 | $ 0 |
Consumer Portfolio Segment | Personal Loans | |||
Cash flows from financing activities: | |||
Proceeds from sales and collections on receivables held for sale | 608,000 | ||
Proceeds from sales of finance receivables 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 | 3 Months Ended |
Mar. 31, 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 N.V., the Company has operated as Stellantis N.V.’s preferred provider for consumer loans, leases and dealer loans and provides services to Stellantis N.V. 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 March 31, 2021, the Company was owned approximately 80.3% by SHUSA, a subsidiary of Santander, and approximately 19.7% by other shareholders. Correction of Errors Subsequent to the issuance of the Company's March 31, 2021, Consolidated Financial Statements, errors were identified in the historical Consolidated Statement of Cash Flows for the three months ended March 31, 2021. Accordingly, the Company has restated the unaudited interim Condensed Consolidated Statements of Cash Flows for three months ended March 31, 2021, to reflect the error corrections. • During three months ended March 31, 2021, the Company reported $1,173 million of Originations and purchases of receivables held for sale within Net Cash Provided by Operating Activities that should have been reported as Originations and purchases of portfolios on finance receivables held for investment within Net Cash Provided by Investing Activities . • During the three months ended March 31, 2021, the Company reported $82 million as Proceeds from sales of and collections on retail installment contracts held for sale within Net Cash Provided by Operating Activities that should have been reported as Collections on finance receivables held for investment within Net Cash Provided by Investing Activities. The impact of the above two errors on the Company’s Consolidated Statement of Cash Flows for the three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 As Reported (1) Corrections As Restated Originations and purchases of receivables held for sale $ (1,173,287) $ 1,173,287 $ — Proceeds from sales of and collections on retail installment contracts held for sale 1,415,460 (81,506) 1,333,954 Net cash provided by operating activities $ 2,061,117 $ 1,091,781 $ 3,152,898 Originations and purchases of portfolios on finance receivables held for investment $ (3,319,515) $ (1,173,287) $ (4,492,802) Collections on finance receivables held for investment 3,528,938 81,506 3,610,444 Net cash provided by investing activities $ 1,398,432 $ (1,091,781) $ 306,651 (1) - Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2021 filed on April 29, 2021. Sale of the Personal Lending Portfolio During the first quarter, 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. 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 | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Held for Investment Finance receivables held for investment, net is comprised of the following at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Retail installment contracts, net (a) $ 26,056,708 $ 26,975,368 Purchased receivables - credit deteriorated 4,655 6,197 Finance lease receivables (Note 4) 23,723 22,440 Finance receivables held for investment, net $ 26,085,086 $ 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 March 31, 2021 and December 31, 2020, $3,965 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 March 31, 2021 and December 31, 2020: March 31, 2021 Retail Installment Contracts Non-TDR TDR Unpaid principal balance $ 27,442,853 $ 4,357,438 ACL (4,662,633) (1,338,708) Discount (net of subvention and participation) 166,786 (6,839) Capitalized origination costs and fees 92,954 4,857 Net carrying balance $ 23,039,960 $ 3,016,748 ACL as a percentage of unpaid principal balance 17.0 % 30.7 % ACL and discount as a percentage of unpaid principal balance 16.4 % 30.9 % 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, $902,246 and $864,680 of the unpaid principal balance represented fleet contracts with commercial borrowers as of March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021 and 2020, the Company originated (including through the SBNA originations program) $3,659,282 and $2,621,828, respectively, in CCAP loans which represented 57% and 53%, respectively, of the total retail installment contract originations (including the SBNA originations program). As of March 31, 2021, borrowers on the Company’s retail installment contracts held for investment are located in Texas (16%), Florida (11%), California (8%), Georgia (6%) and other states each individually representing less than 5% of the Company’s total portfolio. Purchased receivables During the three months ended March 31, 2021 and 2020, the Company did not acquire any vehicle loan portfolios from third party lenders. During the three months ended March 31, 2021 and 2020, the Company recognized certain retail installment contracts with an unpaid principal balance of zero and $76,878, respectively, 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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Retail installment contracts acquired individually $ — $ 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 and proceeds from sales of charged-off assets for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 March 31, 2020 Sales of retail installment contracts to third parties $ 2,380,785 $ — Sales of Personal Loans to third parties $ 1,253,746 Proceeds from sales of charged-off assets to third parties $ — $ 20,875 |
Allowance for Credit Loss and C
Allowance for Credit Loss and Credit Quality | 3 Months Ended |
Mar. 31, 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. As of March 31, 2021, there is no ACL on receivables from dealers as the portfolio has a zero balance. As of March 31, 2020, the ACL for receivables from dealers was comprised entirely of general allowance as none of these receivables have been determined to be individually impaired. 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 months ended March 31, 2021 and 2020 was as follows: Three Months Ended March 31, 2021 March 31, 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 40,059 98,722 757,193 150,850 Charge-offs (a) (586,793) (202,461) (899,550) (289,567) Recoveries 416,903 128,277 470,669 125,402 Balance — end of period $ 4,662,633 $ 1,338,708 $ 4,482,663 $ 973,236 (a) 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 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 over a reasonable and supportable time horizon with weightings assigned by management and approved through established committee governance. The Company’s ACL decreased $0.1 billion for the three months ended March 31, 2021. For the three months ended March 31, 2021, the decrease was primarily due to volume and improved macroeconomic outlook. 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 months ended March 31, 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 March 31, 2021, and December 31, 2020 is as follows: March 31, 2021 Finance Receivables Held for Investment Retail Installment Contract Loans Purchased Receivables Portfolios - credit deteriorated Total Percent Amortized cost, 30-59 days past due $ 1,409,974 $ 599 $ 1,410,573 4.4 % Amortized cost over 59 days 698,620 385 699,005 2.2 % Total delinquent balance at amortized cost (a) $ 2,108,594 $ 984 $ 2,109,578 6.6 % (a) The amount of accrued interest excluded from the disclosed amortized cost table is $49,165. 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. The unpaid principal balance on revolving personal loans 90 days past due and still accruing totaled zero and $78,880 as of March 31, 2021 and December 31, 2020, respectively. 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. 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: March 31, 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 $ 544,228 $ 133,628 $ 16,959 1.7 % TDR 260,408 41,774 9,212 0.8 % Total non-accrual loans $ 804,636 $ 175,402 $ 26,171 2.5 % (a) These represent loans for which a bankruptcy notice was received, and have been partially write-down to the collateral value less estimated costs to sell. Accordingly, there is no additional ACL on these loans. 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 March 31, 2021 primarily due to government stimulus payments and tax refunds provided to customers. Credit Quality Indicators FICO® Distribution (determined at origination) — Amortized Cost Basis (in millions) by Origination Year for Retail Installment Contacts Total March 31, 2021 2021 2020 2019 2018 2017 2016 Prior Amount % No-FICO ® s 568 1,564 997 458 411 191 107 4,296 13.4% <540 523 1,649 1,226 806 391 221 211 5,027 15.7% 540-599 1,384 3,923 2,685 1,526 578 351 272 10,719 33.4% 600-639 914 2,424 1,590 853 283 185 124 6,373 19.9% >=640 (a) 925 2,331 1,202 707 223 154 101 5,643 17.6% Total (b) $ 4,314 $ 11,891 $ 7,700 $ 4,350 $ 1,886 $ 1,102 $ 815 $ 32,058 100.00% (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 $346 million . Total December 31, 2020 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 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 March 31, 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 March 31, 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 for 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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Retail Installment Contracts Amortized Cost (including accrued interest) (a) $ 4,430,512 $ 4,011,780 Impairment (1,338,708) (1,314,170) Amortized cost including accrued interest, net of impairment $ 3,091,804 $ 2,697,610 (a) As of March 31, 2021, this balance excludes $62.8 million of collateral-dependent bankruptcy TDRs that have been written down by $21.1 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 March 31, 2021 and December 31, 2020 is as follows: March 31, 2021 December 31, 2020 Retail Installment Contracts 30-59 days past due $ 548,849 $ 637,560 Delinquent balance over 59 days 247,638 344,776 Total delinquent TDRs $ 796,487 $ 982,336 Average amortized cost and interest income recognized on TDR loans are as follows: Three Months Ended March 31, 2021 March 31, 2020 Retail Installment Contracts Average amortized cost (including accrued interest) $ 4,265,282 $ 3,687,797 Interest income recognized 209,281 156,238 The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs that occurred for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 March 31, 2020 Retail Installment Contracts Amortized cost (including accrued interest) before TDR $ 902,144 $ 177,215 Amortized cost (including accrued interest) after TDR (a) 907,907 177,604 Number of contracts (not in thousands) 44,191 9,826 (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 months ended March 31, 2021and 2020 are summarized in the following table: Three Months Ended March 31, 2021 March 31, 2020 Retail Installment Contracts Amortized cost (including accrued interest) in TDRs that subsequently defaulted (a) $ 110,179 $ 69,335 Number of contracts (not in thousands) 5,637 4,085 |
Leases (SC as Lessor)
Leases (SC as Lessor) | 3 Months Ended |
Mar. 31, 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. Income continues to accrue during the extension period and remaining lease payments are recorded on a straight-line basis over the modified lease term. Operating Leases Leased vehicles, net, which is comprised of leases originated under the MPLFA, consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Leased vehicles $ 21,907,106 $ 22,056,063 Less: accumulated depreciation (4,633,289) (4,796,595) Depreciated net capitalized cost 17,273,817 17,259,468 Manufacturer subvention payments, net of accretion (867,231) (934,381) Origination fees and other costs 71,638 66,020 Net book value $ 16,478,224 $ 16,391,107 The following summarizes the maturity analysis of lease payments due to the Company as lessor under operating leases as of March 31, 2021: Remainder of 2021 $ 2,164,161 2022 1,678,058 2023 878,677 2024 72,105 2025 234 Thereafter — Total $ 4,793,235 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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Gross investment in finance leases $ 35,745 $ 34,461 Origination fees and other 298 289 Less: unearned income (8,546) (8,311) Net investment in finance leases before allowance 27,497 26,439 Less: allowance for lease losses (a) (3,774) (3,999) Net investment in finance leases $ 23,723 $ 22,440 (a) The impact of day 1 - Adjustment to allowance for adoption of CECL standard was insignificant. The following summarizes the maturity analysis of lease payments due to the Company, as lessor, under finance leases as of March 31, 2021: Remainder of 2021 $ 8,338 2022 9,957 2023 8,188 2024 5,839 2025 3,153 Thereafter 270 Total $ 35,745 |
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. Income continues to accrue during the extension period and remaining lease payments are recorded on a straight-line basis over the modified lease term. Operating Leases Leased vehicles, net, which is comprised of leases originated under the MPLFA, consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Leased vehicles $ 21,907,106 $ 22,056,063 Less: accumulated depreciation (4,633,289) (4,796,595) Depreciated net capitalized cost 17,273,817 17,259,468 Manufacturer subvention payments, net of accretion (867,231) (934,381) Origination fees and other costs 71,638 66,020 Net book value $ 16,478,224 $ 16,391,107 The following summarizes the maturity analysis of lease payments due to the Company as lessor under operating leases as of March 31, 2021: Remainder of 2021 $ 2,164,161 2022 1,678,058 2023 878,677 2024 72,105 2025 234 Thereafter — Total $ 4,793,235 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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Gross investment in finance leases $ 35,745 $ 34,461 Origination fees and other 298 289 Less: unearned income (8,546) (8,311) Net investment in finance leases before allowance 27,497 26,439 Less: allowance for lease losses (a) (3,774) (3,999) Net investment in finance leases $ 23,723 $ 22,440 (a) The impact of day 1 - Adjustment to allowance for adoption of CECL standard was insignificant. The following summarizes the maturity analysis of lease payments due to the Company, as lessor, under finance leases as of March 31, 2021: Remainder of 2021 $ 8,338 2022 9,957 2023 8,188 2024 5,839 2025 3,153 Thereafter 270 Total $ 35,745 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2021 | |
Other Assets, Leases And Investments [Abstract] | |
Other Assets | Other Assets Other assets were comprised as follows: March 31, 2021 December 31, 2020 Vehicles (a) $ 371,110 $ 311,557 Manufacturer subvention payments receivable (b) 43,744 57,996 Upfront fee (b) 61,862 69,286 Derivative assets at fair value (c) 16,548 4,740 Derivative - collateral 84,002 92,132 Operating leases (Right-of-use-assets) 50,468 46,441 Available-for-sale debt securities 95,689 95,654 Held-to-maturity debt securities (d) 129,537 44,875 Equity securities not held for trading 3,725 1,380 Prepaids 54,282 45,667 Accounts receivable 26,167 34,607 Federal and State tax receivable 94,143 99,666 Other 48,142 68,725 Other assets $ 1,079,419 $ 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 N.V.. 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 March 31, 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: March 31, 2021 Operating leases-right of use assets $ 50,468 Other liabilities 68,187 Weighted average lease term 4.9 Weighted average discount rate 3.2 % Lease expense i ncurred totaled $3,267 and $3,562 for the three months ended March 31, 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 strai ght-line basis over the lease term. Cash paid for amounts included in the measurement of operating lease liabilities was $4,372 during the three months ended March 31, 2021. The maturity of lease liabilities at March 31, 2021 are as follows: March 31, 2021 2021 $ 12,547 2022 16,215 2023 12,761 2024 12,701 2025 12,765 Thereafter 6,926 Total $ 73,915 Less: Interest (5,728) Present value of lease liabilities $ 68,187 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. All of 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. 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 as of March 31, 2021: March 31, 2021 Amortized cost (before unrealized gains / losses) Gross Unrealized gain Gross Unrealized loss Fair value Available-for-sale debt securities (US Treasury securities) $ 93,535 $ 2,154 $ — $ 95,689 Held-to-maturity debt securities (Asset-Backed Notes) $ 129,484 $ 697 $ — $ 130,181 Contractual Maturities The contractual maturities of available-for-sale and held-to-maturity debt instruments are summarized in the following table: March 31, 2021 Available-for-sale debt securities Held-to-maturity debt securities Amortized cost Fair value Amortized cost Fair value Due within one year $ 39,210 $ 39,836 $ 3,134 $ 3,134 Due after one year but within 5 years 54,325 55,853 53,703 53,967 Due after 5 year but within 10 years — — 72,647 73,080 Total $ 93,535 $ 95,689 $ 129,484 $ 130,181 There we re no transfers o f securities between available-for-sale and held-to-maturity for the three months ended March 31, 2021 . The Company did not record an allowance for credit-related losses on available-for-sale and held-to-maturity securities at March 31, 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, securities for which management has an expectation that nonpayment of the amortized cost basis is zero, do not have a reserve. Other Investments Other investments includes equity securities not held for trading as 5% of the certificate related to off-balance sheet securitizations. Equity securities are measured at fair value as of March 31, 2021 for $3,725 , with ch |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 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: March 31, 2021 December 31, 2020 Assets Restricted cash $ 2,040,255 $ 1,737,021 Finance receivables held for sale, net — 581,938 Finance receivables held for investment, net 22,335,539 22,572,549 Leased vehicles, net 16,478,224 16,391,107 Various other assets 842,105 791,306 Total assets $ 41,696,123 $ 42,073,921 Liabilities Notes payable $ 29,670,906 $ 31,700,709 Various other liabilities 55,669 84,922 Total liabilities $ 29,726,575 $ 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 March 31, 2021 and December 31, 2020, the Company was servicing $27,284,782 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 months ended March 31, 2021 and 2020, is as follows: Three Months Ended March 31, 2021 March 31, 2020 Assets securitized $ 4,123,051 $ 6,675,730 Net proceeds from new securitizations (a) $ 3,586,124 $ 3,876,529 Net proceeds from retained bonds 63,781 54,467 Cash received for servicing fees (b) 228,188 246,743 Net distributions from Trusts (b) 1,140,377 866,936 Total cash received from Trusts $ 5,018,470 $ 5,044,675 (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 three months ended March 31, 2021 and 2020, the Compa ny sold $1,891,278 and zero respectively, of gross retail installment contracts to third party investors in off-balance sheet securitizations for a gain of $7,233 and zero, respectively. The gains were recorded in investment gains, net, in the accompanying condensed consolidated statements of income. As of March 31, 2021 and December 31, 2020 , the Company was servicing $3,707,862 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: March 31, 2021 December 31, 2020 Related party SPAIN serviced securitizations $ 1,021,099 $ 1,214,644 Third party SCART serviced securitizations 2,623,575 929,429 Third party CCAP serviced securitizations 63,188 82,713 Total serviced for others portfolio $ 3,707,862 $ 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 months ended March 31, 2021 and 2020, is as follows: Three Months Ended March 31, 2021 March 31, 2020 Receivables securitized (a) $ 1,891,278 $ — Net proceeds from new securitizations 1,779,532 — Cash received for servicing fees 6,726 6,179 Total cash received from securitization trusts $ 1,786,258 $ 6,179 (a) Represents the unpaid principal balance at the time of original securitization. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total borrowings and other debt obligations as of March 31, 2021 and December 31, 2020 consists of: March 31, 2021 December 31, 2020 Notes Payable — Facilities with Third Parties $ 2,348,545 $ 4,159,955 Notes Payable — Secured Structured Financings 25,692,019 26,177,401 Notes Payable — Facilities with Santander and Related Subsidiaries (a) 10,501,060 10,801,318 $ 38,541,624 $ 41,138,674 Notes Payable - Credit Facilities The following table presents information regarding the Company’s credit facilities as of March 31, 2021 and December 31, 2020: March 31, 2021 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line August 2022 $ 167,000 $ 500,000 1.95% $ 592,553 $ — Warehouse line March 2022 1,072,345 1,250,000 0.63% 1,719,708 1 Warehouse line October 2022 — 1,500,000 2.59% 159,339 — Warehouse line October 2022 — 3,500,000 3.22% 1,378,224 — Warehouse line October 2022 — 500,000 3.96% 118,970 570 Warehouse line October 2022 658,500 2,100,000 3.32% 968,850 103 Warehouse line January 2023 450,700 1,000,000 1.16% 1,142,351 — Warehouse line November 2022 — 500,000 0.92% 392,637 — Warehouse line July 2022 — 900,000 —% — 1,684 Total facilities with third parties 2,348,545 11,750,000 6,472,632 2,358 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 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 1.34% — — Promissory Note September 2022 2,000,000 2,000,000 1.04% — — Line of credit July 2021 — 500,000 2.14% — — Line of credit March 2023 — 2,500,000 3.31% — — Total facilities with Santander and related subsidiaries 10,500,000 13,500,000 — — Total revolving credit facilities $ 12,848,545 $ 25,250,000 $ 6,472,632 $ 2,358 (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 March 31, 2021 and December 31, 2020 was $1.1 million and $1.3 million, respectively, the amortization of which will reduce interest expense over the remaining 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 2.19% — — Line of credit March 2022 — 2,500,000 3.34% — — 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 revol ving credit and $2,500,000 of contin gent liquidity that can be drawn on an unsecured basis. Promissory Notes SHUSA provides the Company with $6,500,000 of unsecured promissory notes. Santander provides the Company with $4,000,000 of unsecured promissory notes. Notes Payable - Secured Structured Financings The following table presents information regarding secured structured financings as of March 31, 2021 and December 31, 2020: March 31, 2021 Estimated Maturity Date(s) at Issuance Balance Initial Note Amounts Issued (d) Initial Weighted Average Interest Rate Collateral (b) Restricted Cash 2016 Securitizations March 2024 $ 91,428 $ 1,250,000 2.34% $ 160,734 $ 46,666 2017 Securitizations July 2022 - September 2024 864,178 8,262,940 1.35% - 2.52% 1,399,990 232,606 2018 Securitizations February 2024 - April 2026 2,250,155 11,000,280 2.41% - 3.42% 3,435,529 372,049 2019 Securitizations May 2024 - February 2027 5,959,087 11,924,720 2.08% - 3.34% 7,691,626 576,514 2020 Securitizations November 2024 - May 2028 7,431,733 10,028,425 0.60% - 2.73% 9,345,987 633,342 2021 Securitizations November 2026 - March 2027 3,429,197 3,497,230 0.50% - 0.51% 3,905,821 154,211 Public Securitizations (a) 20,025,778 45,963,595 25,939,687 2,015,388 2013 Private issuances July 2024 - September 2024 521,397 1,537,025 1.28% 1,521,220 751 2018 Private issuances June 2022 - April 2024 1,837,240 4,186,002 2.42% - 3.53% 2,774,962 6,561 2019 Private issuance September 2022 - November 2026 2,335,820 3,524,536 2.45% - 3.90% 3,287,079 10,294 2020 Private issuance April 2024 - December 2027 971,784 1,500,000 1.29% - 2.68% 1,351,381 4,902 Privately issued amortizing notes (c) 5,666,241 10,747,563 8,934,642 22,508 Total secured structured financings $ 25,692,019 $ 56,711,158 $ 34,874,329 $ 2,037,896 (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 March 31, 2021 and December 31, 2020 , the Company had private issuances of notes backed by vehicle leases totali ng $8.7 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 effe ctive interest method and are classified as a discount to the related recorded debt balance. Amortized debt issuance costs were $10,599 and $9,352 for the three months ended March 31, 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 March 31, 2021 and 2020 was $122,514 and $198,463, respectively . |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity 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. The Company extended the share repurchase program through the end of the third 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 then 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. Subsequently, the Federal Reserve Board extended the Interim Policy through the second quarter of 2021. As a result of the extension of the Interim Policy, the Company may continue, consistent with the Interim Policy, to repurchase only a number of shares of the Company’s common stock equal to the amount of share issuances related to the Company’s expensed employee compensation through the second quarter of 2021. Please find below the details of the Company's tender offer and other share repurchase programs for the three months ended March 31, 2021 and 2020 : Three Months Ended March 31, 2021 March 31, 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 357,747 846,461 Average price per share $ 26.46 $ 13.82 Cost of shares purchased (b) $ 9,468 $ 11,700 Total number of shares purchased 357,747 18,361,168 Average price per share $ 26.46 $ 25.44 Total cost of shares purchased (b) $ 9,468 $ 467,082 (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 Refer to Part II Item 2 - "Unregistered Sales of Equity Securities and Use of Proceeds" below section for additional details on share repurchases. 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 March 31, 2021 and December 31, 2020, respectively . No sh ares were withheld to cover income taxes related to stock issued in connection with employee incentive compensation plans for the three months ended March 31, 2021. The value of the treasury stock is included within the additional paid-in-capital. Accumulated Other Comprehensive Income (Loss) A summary of changes in accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2021 and 2020 is as follows: Three Months Ended March 31, 2021 March 31, 2020 Beginning balance, unrealized gains (losses) $ (50,566) $ (26,693) Other comprehensive income (loss) before reclassifications (gross) 2,970 (37,585) Amounts (gross) reclassified out of accumulated other comprehensive income (loss) 5,778 623 Ending balance, unrealized gains (losses) $ (41,818) $ (63,655) Amounts (gross) reclassified out of accumulated other comprehensive income (loss) during the three months ended March 31, 2021 and 2020 consist of the following: Three Months Ended Income statement line item Reclassification March 31, 2021 March 31, 2020 Cash flow hedges $ 7,657 $ 824 Interest expense Tax benefit (1,879) (201) Net of tax $ 5,778 $ 623 Dividends On March 31, 2021, the Company paid a cash dividend of $0.22 per share and a special dividend of $0.22 per share of common stock for a total of $0.44 per share to shareholders of record as of the close of business on March 29, 2021. On April 27, 2021, the Company received written notification from the FRB that the FRB has approved SHUSA’s request for an exception from the prohibition in the Interim Policy restricting the payment of certain dividends in the second quarter of 2021. The Company’s Board of Directors will determine whether a dividend will be declared and the timing and amount of any such dividend. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 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 offset the interest rate caps 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 March 31, 2021 and December 31, 2020, are as follows: March 31, 2021 December 31, 2020 Notional Asset Liability Notional Asset Liability Interest rate swap agreements designated as cash flow hedges $ 2,150,000 $ 765 $ (59,147) $ 2,450,000 $ 123 $ (70,589) Interest rate swap agreements not designated as hedges 250,000 — (11,119) 250,000 — (12,934) Interest rate cap agreements 9,338,393 15,783 — 10,199,134 4,617 — Options for interest rate cap agreements 9,338,393 — (15,783) 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 March 31, 2021 and December 31, 2020: Gross Amounts Not Offset in the Assets Presented in the Collateral Net March 31, 2021 Interest rate swaps - third party (b) $ 765 $ (765) $ — Interest rate caps - Santander and affiliates $ 1,438 $ (1,390) $ 48 Interest rate caps - third party 14,345 (14,345) — Total derivatives subject to a master netting arrangement or similar arrangement 16,548 (16,500) 48 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 16,548 $ (16,500) $ 48 Total financial assets $ 16,548 $ (16,500) $ 48 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 March 31, 2021 Interest rate swaps - third party (b) $ 70,266 $ (70,266) $ — Interest rate caps - Santander and affiliates 1,438 (1,250) 188 Interest rate caps - third party 14,345 (6,323) 8,022 Total derivatives subject to a master netting arrangement or similar arrangement 86,049 (77,839) 8,210 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 86,049 $ (77,839) $ 8,210 Total financial liabilities $ 86,049 $ (77,839) $ 8,210 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. 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 months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 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 $ — $ 4,358 $ (7,657) Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses $ (244) Three Months Ended March 31, 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 $ — $ (52,386) $ (824) Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses $ 9,171 The Company estimates that approxima tely $29,585 of unrealized gains included 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 | 3 Months Ended |
Mar. 31, 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 following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2021 and December 31, 2020, and the level within the fair value hierarchy: Level 1 Level 2 Level 3 Balance at March 31, 2021 Level 1 Level 2 Level 3 Balance at December 31, 2020 Other assets: Trading interest rate caps (a) $ — $ 15,783 $ — $ 15,783 $ — $ 4,617 $ — $ 4,617 Cash flow hedging interest rate swaps (a) — 765 — $ 765 — 123 — $ 123 Available-for-sale-debt securities (b) — 95,689 — $ 95,689 — 95,654 — $ 95,654 Retail installment contracts (c)(d) — — 3,965 $ 3,965 — — 5,614 $ 5,614 Other liabilities: Trading options for interest rate caps (a) — 15,783 — $ 15,783 — 4,617 — $ 4,617 Cash flow hedging interest rate swaps (a) — 59,147 — $ 59,147 — 70,589 — $ 70,589 Trading interest rate swaps (a) — 11,119 — $ 11,119 — 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 are classified as Level 3. 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 March 31, 2021 and December 31, 2020, is $656 and $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 months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Balance — beginning of year $ 5,614 $ 4,719 Additions / issuances — 2,512 Transfer from level 2 (a) — 17,634 Net collection activities (1,649) (9,680) Gains recognized in earnings — 122 Balance — end of year $ 3,965 $ 15,307 (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 March 31, 2021 and 2020. 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 March 31, 2021 and December 31, 2020, respectively: Three Months Ended March 31, 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) $ 371,110 $ — $ 311,557 $ — Personal loans held for sale (b) — — 893,479 355,136 Retail installment contracts held for sale — — 674,048 $ 7,385 Auto loans impaired due to bankruptcy (c) 175,401 — 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) 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 three months ended March 31, 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 March 31, 2021 and December 31, 2020, respectively: Financial Instruments Fair Value at March 31, 2021 Valuation Technique Unobservable Inputs Range (weighted average) (a) Financial Assets: Retail installment contracts held for investment $ 3,965 Discounted Cash Flow Discount Rate 7%-13% (8%) Default Rate 4%-20% (6%) Prepayment Rate 4%-15% (15%) Loss Severity Rate 50%-60% (55%) (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 March 31, 2021 and December 31, 2020, and the level within the fair value hierarchy: March 31, 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) $ 415,969 $ 415,969 $ 415,969 $ — $ — $ 109,053 $ 109,053 $ 109,053 $ — $ — Finance receivables held for investment, net (b) 25,905,719 28,546,529 — — 28,546,529 26,806,606 29,464,066 — — 29,464,066 Restricted cash (a) 2,623,565 2,623,565 2,623,565 — — 2,221,094 2,221,094 2,221,094 — — Investments in debt securities held to maturity (c) 129,484 130,181 — 130,181 — 44,841 45,606 — 45,606 — Total $ 29,074,737 $ 31,716,244 $ 3,039,534 $ 130,181 $ 28,546,529 $ 29,181,594 $ 31,839,819 $ 2,330,147 $ 45,606 $ 29,464,066 Liabilities: Notes Payable: Facilities with third parties (d) $ 2,348,545 $ 2,348,545 $ — $ — $ 2,348,545 $ 4,159,955 $ 4,159,955 $ — $ — $ 4,159,955 Secured structured financings (e) 25,692,019 26,122,220 — 20,154,566 5,967,654 26,177,401 26,673,970 — 18,291,898 8,382,072 Facilities with Santander and related subsidiaries (f) 10,501,060 10,707,931 — — 10,707,931 10,801,318 11,333,823 — — 11,333,823 Total $ 38,541,624 $ 39,178,696 $ — $ 20,154,566 $ 19,024,130 $ 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 of all finance receivables at March 31, 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 Losses, Net
Investment Losses, Net | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Losses, Net | Investment 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 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 months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 March 31, 2020 Gain (loss) on sale of loans and leases $ 16,357 $ — Lower of cost or market adjustments (31,848) (62,958) Other gains, (losses and impairments), net 779 (468) $ (14,712) $ (63,426) The lower of cost or market adjustments for the three months ended March 31, 2021 and 2020 included $65,047 and $110,199, respectively, in customer default activity, and favorable adjustments of $33,199 and $47,241 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 | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $234,457 (24.0% eff ective tax rate) and $(2,458) (38.1% effective tax rate) during the three months ended March 31, 2021 and 2020, respectively. The effective tax rate decreased primarily due to pre-tax income in the first quarter of 2021 compared to discrete tax adjustments that increased the tax benefit recorded on the pre-tax loss in the first quarter of 2020. 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 separate company tax calculation method. The Company had a net receivable from affiliates under the tax sharing agreem ent of $648 and $11,191 at March 31, 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 March 31, 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 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings per Common Share | 3 Months Ended |
Mar. 31, 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 using the two-class method required for participating securities. Restricted stock awards are considered to be participating securities because holders of such awards have non-forfeitable dividend rights in the event of a declaration of a dividend on the Company’s common shares. The calculation of diluted EPS excludes the effect of exercise or settlement that would be anti-dilutive for employee stock options o f zero and 34,554 for the three months ended March 31, 2021 and 2020, respectively. The following table represents EPS numbers for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 Earnings per common share Net income (loss) $ 741,655 $ (3,987) Weighted average number of common shares outstanding before restricted participating shares (in thousands) 306,109 334,026 Weighted average number of common shares outstanding (in thousands) 306,109 334,026 Earnings per common share $ 2.42 $ (0.01) Earnings per common share - assuming dilution Net income (loss) $ 741,655 $ (3,987) Weighted average number of common shares outstanding (in thousands) 306,109 334,026 Effect of employee stock-based awards (in thousands) 216 320 Weighted average number of common shares outstanding - assuming dilution (in thousands) 306,325 334,346 Earnings per common share - assuming dilution $ 2.42 $ (0.01) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table summarizes liabilities recorded for commitments and contingencies as of March 31, 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 March 31, 2021 December 31, 2020 MPLFA Revenue-sharing and gain/(loss), net-sharing payments $ 65,446 $ 43,778 Agreement with Bank of America Servicer performance fee 182 1,200 Agreement with CBP Loss-sharing payments 26 181 Other Contingencies Consumer arrangements 17,186 22,155 Legal and regulatory proceedings Aggregate legal and regulatory liabilities 28,812 31,936 Total commitments and contingencies $ 111,652 $ 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 N.V. and also must share with Stellantis N.V. when residual gains/(losses) on leased vehicles exceed a specified threshold. The Company had accrued $65,446 and $43,778 at March 31, 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 N.V. retail financing. In turn, Stellantis N.V. 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 $182 and $1,200 at March 31, 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 $26 and $181 at March 31, 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 $17,186 and $22,155 at March 31, 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, lawsuit, investigations, regulatory matter or legal proceeding, 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 March 31, 2021 and December 31, 2020, the Company accrued aggregate legal and regulatory liabilities of $29 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 March 31, 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 director 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. 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. The complaint alleges that the Company engaged in unfair and deceptive business practices to induce Mississippi consumers to apply for loans that they could not afford. The complaint asserts claims under the Mississippi Consumer Protection Act (the MCPA) and seeks unspecified civil penalties, equitable relief and other relief. 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, 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 March 31, 2021 and December 31, 2020, the total unused credit available to customers was zero and $2.7 billion, respectively. 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 $20,943 of receivables related to newly opened customer accounts during three months ended March 31, 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. As of March 31, 2021 and December 31, 2020, the Company was obligated to purchase zero and $14,222, respectively, in receivables that had been originated by Bluestem but not yet purchased by the Company. • 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 March 31, 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 March 31, 2021 and December 31, 2020, not subject to market price check was $15,318. 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 | 3 Months Ended |
Mar. 31, 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 $74,019 and $63,018 for the three months ended March 31, 2021 and 2020, respectively. Accrued interest for lines of credit from SHUSA at March 31, 2021 and December 31, 2020 was $38,314 and $40,234, respectively. Interest expense, including unused fees, for lines of credit from Santander (Note 7) totaled $11,885 and zero for the three months ended March 31, 2021 and 2020, respectively. Accrued interest for lines of credit from Santander at March 31, 2021 and December 31, 2020 was $1,609 and $1,603, respectively. Derivatives The Company has derivative financial instruments with Santander and affiliates with outstanding notional amounts of $2,984,250 and $3,148,850 as of March 31, 2021 and December 31, 2020, respectively (Note 9). The Company had a collateral overage on derivative liabilities with Santander and affiliates of zero and $907 as of March 31, 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 $402 and $553 for the three months ended March 31, 2021 and 2020, respectively. Other information on the serviced auto loan and retail installment contract portfolios for SBNA as of March 31, 2021 and December 31, 2020 is as follows: March 31, 2021 December 31, 2020 Total serviced portfolio $ 171,450 $ 190,504 Cash collections due to owner 24,281 19,650 Servicing fees receivable 2,788 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 and 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 March 31, 2021 or December 31, 2020 for such advances. Other information related to the above transactions with SBNA is as follows: Three Months Ended March 31, 2021 March 31, 2020 Origination and renewal fee income from SBNA $ — $ 1,509 Servicing fees expenses charged by SBNA 90 74 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 $9,073 and $7,548 related to such originations as of March 31, 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 March 31, 2021 and December 31, 2020, the unamortized fee balance was $2,025 and $2,250, respectively. The Company recognized $225 of income related to the referral fee for the three months ended March 31, 2021 and 2020, respectively. Origination Support Services 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 N.V. dealers. In addition, the Company agreed to perform the servicing for any loans originated on SBNA’s behalf. For the three months ended March 31, 2021 and 2020, the Company facilitated the purchase of $2.0 billion and $1.1 billion of retail installment contacts, respectively. The Company recognized origination fee and servicing fee income of $11,566 and $10,488 for the three months ended March 31, 2021 and 2020, respectively, of which $4,120 is receivable as of March 31, 2021 and $970 was payable as of March 31, 2020. 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 months ended March 31, 2021 and 2020, the Company received the servicing fee income of $2,889 and $5,973, respectively, for the servicing of these loans. Servicing fee receivable, as of March 31, 2021 and December 31, 2020, was $914 and $1,070, respectively. The Company had $6,147 and $6,203 of collections due to Santander, as of March 31, 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 March 31, 2021 and 2020, totaled $1,192 and $808, respectively, and are included in debt issuance costs in the accompanying condensed consolidated financial statements. Employee compensation Sandra Broderick is Head of Operations and Executive Vice President of the Company and Head of Operations and Senior Executive Vice President of SHUSA. During the three months ended March 31, 2021, SHUSA owed the Company $48 for the share of compensation expense based on time allocation between her services to the Company and SHUSA. In addition, certain employees of the Company and SHUSA provide services to each other. For the three months ended March 31, 2021 and 2020, the Company owed SHUSA approximately $4,896 and $4,479 and SHUSA owed the Company approximately $2,303 and $1,518 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 March 31, 2021 and 2020, the Company recorded $44 in sublease revenue on this property. • The Company has certain deposit and checking accounts with SBNA. As of March 31, 2021 and December 31, 2020, the Company had a balance of $356,911 and $32,490, 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 March 31, 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 $33 and $58 for the three months ended March 31, 2021 and 2020, respectively. • The Company has contracted Aquanima, a Santander affiliate, to provide procurement services. Expenses incurred totaled $787 and $510 for the three months ended March 31, 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 $179 for the three months ended March 31, 2021 and 2020, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 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 Compensation expense related to the 583,890 shares of restricted stock that the Company has issued to certain executives is recognized over a five-year vesting period, with zero recorded for the three months ended March 31, 2021 and 2020. The Company recognized $5,448 and $4,038 related to stock options and restricted stock units within compensation expense for the three months ended March 31, 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 three months ended March 31, 2021 is as follows: Shares Weighted Weighted Aggregate Options outstanding at January 1, 2021 169,369 $ 13.01 1.9 $ 1,543 Granted — — — — Exercised (47,359) 9.22 — 775 Expired — — — — Forfeited — — — — Other (a) — — — — Options outstanding at March 31, 2021 122,010 14.49 2.1 1,534 Options exercisable at March 31, 2021 122,010 $ 14.49 2.1 $ 1,534 Options expected to vest at March 31, 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 three months ended March 31, 2021 is as follows: Shares Weighted Weighted Aggregate Outstanding as of January 1, 2021 367,012 $ 19.78 0.8 $ 8,082 Granted 324,295 25.38 — — Vested (340,511) 22.27 — 8,638 Forfeited/canceled (7,362) 14.32 — — Non-vested at March 31, 2021 343,434 $ 22.66 1.5 $ 9,293 |
Description of Business, Basi_2
Description of Business, Basis of Presentation, and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 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. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections | The impact of the above two errors on the Company’s Consolidated Statement of Cash Flows for the three months ended March 31, 2021 is as follows: Three Months Ended March 31, 2021 As Reported (1) Corrections As Restated Originations and purchases of receivables held for sale $ (1,173,287) $ 1,173,287 $ — Proceeds from sales of and collections on retail installment contracts held for sale 1,415,460 (81,506) 1,333,954 Net cash provided by operating activities $ 2,061,117 $ 1,091,781 $ 3,152,898 Originations and purchases of portfolios on finance receivables held for investment $ (3,319,515) $ (1,173,287) $ (4,492,802) Collections on finance receivables held for investment 3,528,938 81,506 3,610,444 Net cash provided by investing activities $ 1,398,432 $ (1,091,781) $ 306,651 (1) - Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2021 filed on April 29, 2021. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Summary of Financing Receivables Held for Investment | Finance receivables held for investment, net is comprised of the following at March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Retail installment contracts, net (a) $ 26,056,708 $ 26,975,368 Purchased receivables - credit deteriorated 4,655 6,197 Finance lease receivables (Note 4) 23,723 22,440 Finance receivables held for investment, net $ 26,085,086 $ 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 March 31, 2021 and December 31, 2020, $3,965 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 March 31, 2021 and December 31, 2020: March 31, 2021 Retail Installment Contracts Non-TDR TDR Unpaid principal balance $ 27,442,853 $ 4,357,438 ACL (4,662,633) (1,338,708) Discount (net of subvention and participation) 166,786 (6,839) Capitalized origination costs and fees 92,954 4,857 Net carrying balance $ 23,039,960 $ 3,016,748 ACL as a percentage of unpaid principal balance 17.0 % 30.7 % ACL and discount as a percentage of unpaid principal balance 16.4 % 30.9 % 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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Retail installment contracts acquired individually $ — $ 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 and proceeds from sales of charged-off assets for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 March 31, 2020 Sales of retail installment contracts to third parties $ 2,380,785 $ — Sales of Personal Loans to third parties $ 1,253,746 Proceeds from sales of charged-off assets to third parties $ — $ 20,875 |
Allowance for Credit Loss and_2
Allowance for Credit Loss and Credit Quality (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Credit Loss [Abstract] | |
Summary of Activity in Loan Loss Allowance | The activity in the ACL for the retail installment contracts for the three months ended March 31, 2021 and 2020 was as follows: Three Months Ended March 31, 2021 March 31, 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 40,059 98,722 757,193 150,850 Charge-offs (a) (586,793) (202,461) (899,550) (289,567) Recoveries 416,903 128,277 470,669 125,402 Balance — end of period $ 4,662,633 $ 1,338,708 $ 4,482,663 $ 973,236 (a) 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 March 31, 2021, and December 31, 2020 is as follows: March 31, 2021 Finance Receivables Held for Investment Retail Installment Contract Loans Purchased Receivables Portfolios - credit deteriorated Total Percent Amortized cost, 30-59 days past due $ 1,409,974 $ 599 $ 1,410,573 4.4 % Amortized cost over 59 days 698,620 385 699,005 2.2 % Total delinquent balance at amortized cost (a) $ 2,108,594 $ 984 $ 2,109,578 6.6 % (a) The amount of accrued interest excluded from the disclosed amortized cost table is $49,165. 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: March 31, 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 $ 544,228 $ 133,628 $ 16,959 1.7 % TDR 260,408 41,774 9,212 0.8 % Total non-accrual loans $ 804,636 $ 175,402 $ 26,171 2.5 % (a) These represent loans for which a bankruptcy notice was received, and have been partially write-down to the collateral value less estimated costs to sell. Accordingly, there is no additional ACL on these loans. 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 March 31, 2021 2021 2020 2019 2018 2017 2016 Prior Amount % No-FICO ® s 568 1,564 997 458 411 191 107 4,296 13.4% <540 523 1,649 1,226 806 391 221 211 5,027 15.7% 540-599 1,384 3,923 2,685 1,526 578 351 272 10,719 33.4% 600-639 914 2,424 1,590 853 283 185 124 6,373 19.9% >=640 (a) 925 2,331 1,202 707 223 154 101 5,643 17.6% Total (b) $ 4,314 $ 11,891 $ 7,700 $ 4,350 $ 1,886 $ 1,102 $ 815 $ 32,058 100.00% (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 $346 million . Total December 31, 2020 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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Retail Installment Contracts Amortized Cost (including accrued interest) (a) $ 4,430,512 $ 4,011,780 Impairment (1,338,708) (1,314,170) Amortized cost including accrued interest, net of impairment $ 3,091,804 $ 2,697,610 (a) As of March 31, 2021, this balance excludes $62.8 million of collateral-dependent bankruptcy TDRs that have been written down by $21.1 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 March 31, 2021 and December 31, 2020 is as follows: March 31, 2021 December 31, 2020 Retail Installment Contracts 30-59 days past due $ 548,849 $ 637,560 Delinquent balance over 59 days 247,638 344,776 Total delinquent TDRs $ 796,487 $ 982,336 Average amortized cost and interest income recognized on TDR loans are as follows: Three Months Ended March 31, 2021 March 31, 2020 Retail Installment Contracts Average amortized cost (including accrued interest) $ 4,265,282 $ 3,687,797 Interest income recognized 209,281 156,238 The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs that occurred for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 March 31, 2020 Retail Installment Contracts Amortized cost (including accrued interest) before TDR $ 902,144 $ 177,215 Amortized cost (including accrued interest) after TDR (a) 907,907 177,604 Number of contracts (not in thousands) 44,191 9,826 (a) excluding collateral-dependent bankruptcy TDRs Three Months Ended March 31, 2021 March 31, 2020 Retail Installment Contracts Amortized cost (including accrued interest) in TDRs that subsequently defaulted (a) $ 110,179 $ 69,335 Number of contracts (not in thousands) 5,637 4,085 |
Leases (SC as Lessor) (Tables)
Leases (SC as Lessor) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Leased Vehicles, Net | Leased vehicles, net, which is comprised of leases originated under the MPLFA, consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Leased vehicles $ 21,907,106 $ 22,056,063 Less: accumulated depreciation (4,633,289) (4,796,595) Depreciated net capitalized cost 17,273,817 17,259,468 Manufacturer subvention payments, net of accretion (867,231) (934,381) Origination fees and other costs 71,638 66,020 Net book value $ 16,478,224 $ 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 March 31, 2021: Remainder of 2021 $ 2,164,161 2022 1,678,058 2023 878,677 2024 72,105 2025 234 Thereafter — Total $ 4,793,235 |
Schedule of Finance Lease Receivables, Net | Finance lease receivables, net consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Gross investment in finance leases $ 35,745 $ 34,461 Origination fees and other 298 289 Less: unearned income (8,546) (8,311) Net investment in finance leases before allowance 27,497 26,439 Less: allowance for lease losses (a) (3,774) (3,999) Net investment in finance leases $ 23,723 $ 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 March 31, 2021: Remainder of 2021 $ 8,338 2022 9,957 2023 8,188 2024 5,839 2025 3,153 Thereafter 270 Total $ 35,745 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Assets, Leases And Investments [Abstract] | |
Schedule of Other Assets | Other assets were comprised as follows: March 31, 2021 December 31, 2020 Vehicles (a) $ 371,110 $ 311,557 Manufacturer subvention payments receivable (b) 43,744 57,996 Upfront fee (b) 61,862 69,286 Derivative assets at fair value (c) 16,548 4,740 Derivative - collateral 84,002 92,132 Operating leases (Right-of-use-assets) 50,468 46,441 Available-for-sale debt securities 95,689 95,654 Held-to-maturity debt securities (d) 129,537 44,875 Equity securities not held for trading 3,725 1,380 Prepaids 54,282 45,667 Accounts receivable 26,167 34,607 Federal and State tax receivable 94,143 99,666 Other 48,142 68,725 Other assets $ 1,079,419 $ 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 N.V.. 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: March 31, 2021 Operating leases-right of use assets $ 50,468 Other liabilities 68,187 Weighted average lease term 4.9 Weighted average discount rate 3.2 % |
Schedule of Maturity of Lease Liabilities | The maturity of lease liabilities at March 31, 2021 are as follows: March 31, 2021 2021 $ 12,547 2022 16,215 2023 12,761 2024 12,701 2025 12,765 Thereafter 6,926 Total $ 73,915 Less: Interest (5,728) Present value of lease liabilities $ 68,187 |
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 as of March 31, 2021: March 31, 2021 Amortized cost (before unrealized gains / losses) Gross Unrealized gain Gross Unrealized loss Fair value Available-for-sale debt securities (US Treasury securities) $ 93,535 $ 2,154 $ — $ 95,689 Held-to-maturity debt securities (Asset-Backed Notes) $ 129,484 $ 697 $ — $ 130,181 Contractual Maturities The contractual maturities of available-for-sale and held-to-maturity debt instruments are summarized in the following table: March 31, 2021 Available-for-sale debt securities Held-to-maturity debt securities Amortized cost Fair value Amortized cost Fair value Due within one year $ 39,210 $ 39,836 $ 3,134 $ 3,134 Due after one year but within 5 years 54,325 55,853 53,703 53,967 Due after 5 year but within 10 years — — 72,647 73,080 Total $ 93,535 $ 95,689 $ 129,484 $ 130,181 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 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: March 31, 2021 December 31, 2020 Assets Restricted cash $ 2,040,255 $ 1,737,021 Finance receivables held for sale, net — 581,938 Finance receivables held for investment, net 22,335,539 22,572,549 Leased vehicles, net 16,478,224 16,391,107 Various other assets 842,105 791,306 Total assets $ 41,696,123 $ 42,073,921 Liabilities Notes payable $ 29,670,906 $ 31,700,709 Various other liabilities 55,669 84,922 Total liabilities $ 29,726,575 $ 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 months ended March 31, 2021 and 2020, is as follows: Three Months Ended March 31, 2021 March 31, 2020 Assets securitized $ 4,123,051 $ 6,675,730 Net proceeds from new securitizations (a) $ 3,586,124 $ 3,876,529 Net proceeds from retained bonds 63,781 54,467 Cash received for servicing fees (b) 228,188 246,743 Net distributions from Trusts (b) 1,140,377 866,936 Total cash received from Trusts $ 5,018,470 $ 5,044,675 (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 months ended March 31, 2021 and 2020, is as follows: Three Months Ended March 31, 2021 March 31, 2020 Receivables securitized (a) $ 1,891,278 $ — Net proceeds from new securitizations 1,779,532 — Cash received for servicing fees 6,726 6,179 Total cash received from securitization trusts $ 1,786,258 $ 6,179 (a) Represents the unpaid principal balance at the time of original securitization. |
Off-balance Sheet Variable Interest Entities Portfolio | The portfolio was comprised as follows: March 31, 2021 December 31, 2020 Related party SPAIN serviced securitizations $ 1,021,099 $ 1,214,644 Third party SCART serviced securitizations 2,623,575 929,429 Third party CCAP serviced securitizations 63,188 82,713 Total serviced for others portfolio $ 3,707,862 $ 2,226,786 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Total borrowings and other debt obligations as of March 31, 2021 and December 31, 2020 consists of: March 31, 2021 December 31, 2020 Notes Payable — Facilities with Third Parties $ 2,348,545 $ 4,159,955 Notes Payable — Secured Structured Financings 25,692,019 26,177,401 Notes Payable — Facilities with Santander and Related Subsidiaries (a) 10,501,060 10,801,318 $ 38,541,624 $ 41,138,674 |
Schedule of Credit Facilities | The following table presents information regarding the Company’s credit facilities as of March 31, 2021 and December 31, 2020: March 31, 2021 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line August 2022 $ 167,000 $ 500,000 1.95% $ 592,553 $ — Warehouse line March 2022 1,072,345 1,250,000 0.63% 1,719,708 1 Warehouse line October 2022 — 1,500,000 2.59% 159,339 — Warehouse line October 2022 — 3,500,000 3.22% 1,378,224 — Warehouse line October 2022 — 500,000 3.96% 118,970 570 Warehouse line October 2022 658,500 2,100,000 3.32% 968,850 103 Warehouse line January 2023 450,700 1,000,000 1.16% 1,142,351 — Warehouse line November 2022 — 500,000 0.92% 392,637 — Warehouse line July 2022 — 900,000 —% — 1,684 Total facilities with third parties 2,348,545 11,750,000 6,472,632 2,358 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 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 1.34% — — Promissory Note September 2022 2,000,000 2,000,000 1.04% — — Line of credit July 2021 — 500,000 2.14% — — Line of credit March 2023 — 2,500,000 3.31% — — Total facilities with Santander and related subsidiaries 10,500,000 13,500,000 — — Total revolving credit facilities $ 12,848,545 $ 25,250,000 $ 6,472,632 $ 2,358 (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 March 31, 2021 and December 31, 2020 was $1.1 million and $1.3 million, respectively, the amortization of which will reduce interest expense over the remaining 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 2.19% — — Line of credit March 2022 — 2,500,000 3.34% — — 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 March 31, 2021 and December 31, 2020: March 31, 2021 Estimated Maturity Date(s) at Issuance Balance Initial Note Amounts Issued (d) Initial Weighted Average Interest Rate Collateral (b) Restricted Cash 2016 Securitizations March 2024 $ 91,428 $ 1,250,000 2.34% $ 160,734 $ 46,666 2017 Securitizations July 2022 - September 2024 864,178 8,262,940 1.35% - 2.52% 1,399,990 232,606 2018 Securitizations February 2024 - April 2026 2,250,155 11,000,280 2.41% - 3.42% 3,435,529 372,049 2019 Securitizations May 2024 - February 2027 5,959,087 11,924,720 2.08% - 3.34% 7,691,626 576,514 2020 Securitizations November 2024 - May 2028 7,431,733 10,028,425 0.60% - 2.73% 9,345,987 633,342 2021 Securitizations November 2026 - March 2027 3,429,197 3,497,230 0.50% - 0.51% 3,905,821 154,211 Public Securitizations (a) 20,025,778 45,963,595 25,939,687 2,015,388 2013 Private issuances July 2024 - September 2024 521,397 1,537,025 1.28% 1,521,220 751 2018 Private issuances June 2022 - April 2024 1,837,240 4,186,002 2.42% - 3.53% 2,774,962 6,561 2019 Private issuance September 2022 - November 2026 2,335,820 3,524,536 2.45% - 3.90% 3,287,079 10,294 2020 Private issuance April 2024 - December 2027 971,784 1,500,000 1.29% - 2.68% 1,351,381 4,902 Privately issued amortizing notes (c) 5,666,241 10,747,563 8,934,642 22,508 Total secured structured financings $ 25,692,019 $ 56,711,158 $ 34,874,329 $ 2,037,896 (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) | 3 Months Ended |
Mar. 31, 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 months ended March 31, 2021 and 2020 : Three Months Ended March 31, 2021 March 31, 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 357,747 846,461 Average price per share $ 26.46 $ 13.82 Cost of shares purchased (b) $ 9,468 $ 11,700 Total number of shares purchased 357,747 18,361,168 Average price per share $ 26.46 $ 25.44 Total cost of shares purchased (b) $ 9,468 $ 467,082 (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 months ended March 31, 2021 and 2020 is as follows: Three Months Ended March 31, 2021 March 31, 2020 Beginning balance, unrealized gains (losses) $ (50,566) $ (26,693) Other comprehensive income (loss) before reclassifications (gross) 2,970 (37,585) Amounts (gross) reclassified out of accumulated other comprehensive income (loss) 5,778 623 Ending balance, unrealized gains (losses) $ (41,818) $ (63,655) |
Reclassification of Amounts Out of Accumulated Other Comprehensive Income (Loss) | Amounts (gross) reclassified out of accumulated other comprehensive income (loss) during the three months ended March 31, 2021 and 2020 consist of the following: Three Months Ended Income statement line item Reclassification March 31, 2021 March 31, 2020 Cash flow hedges $ 7,657 $ 824 Interest expense Tax benefit (1,879) (201) Net of tax $ 5,778 $ 623 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2021 and December 31, 2020, are as follows: March 31, 2021 December 31, 2020 Notional Asset Liability Notional Asset Liability Interest rate swap agreements designated as cash flow hedges $ 2,150,000 $ 765 $ (59,147) $ 2,450,000 $ 123 $ (70,589) Interest rate swap agreements not designated as hedges 250,000 — (11,119) 250,000 — (12,934) Interest rate cap agreements 9,338,393 15,783 — 10,199,134 4,617 — Options for interest rate cap agreements 9,338,393 — (15,783) 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 March 31, 2021 and December 31, 2020: Gross Amounts Not Offset in the Assets Presented in the Collateral Net March 31, 2021 Interest rate swaps - third party (b) $ 765 $ (765) $ — Interest rate caps - Santander and affiliates $ 1,438 $ (1,390) $ 48 Interest rate caps - third party 14,345 (14,345) — Total derivatives subject to a master netting arrangement or similar arrangement 16,548 (16,500) 48 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 16,548 $ (16,500) $ 48 Total financial assets $ 16,548 $ (16,500) $ 48 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 March 31, 2021 Interest rate swaps - third party (b) $ 70,266 $ (70,266) $ — Interest rate caps - Santander and affiliates 1,438 (1,250) 188 Interest rate caps - third party 14,345 (6,323) 8,022 Total derivatives subject to a master netting arrangement or similar arrangement 86,049 (77,839) 8,210 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 86,049 $ (77,839) $ 8,210 Total financial liabilities $ 86,049 $ (77,839) $ 8,210 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 months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 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 $ — $ 4,358 $ (7,657) Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses $ (244) Three Months Ended March 31, 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 $ — $ (52,386) $ (824) Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses $ 9,171 |
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 months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 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 $ — $ 4,358 $ (7,657) Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses $ (244) Three Months Ended March 31, 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 $ — $ (52,386) $ (824) Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses $ 9,171 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2021 and December 31, 2020, and the level within the fair value hierarchy: Level 1 Level 2 Level 3 Balance at March 31, 2021 Level 1 Level 2 Level 3 Balance at December 31, 2020 Other assets: Trading interest rate caps (a) $ — $ 15,783 $ — $ 15,783 $ — $ 4,617 $ — $ 4,617 Cash flow hedging interest rate swaps (a) — 765 — $ 765 — 123 — $ 123 Available-for-sale-debt securities (b) — 95,689 — $ 95,689 — 95,654 — $ 95,654 Retail installment contracts (c)(d) — — 3,965 $ 3,965 — — 5,614 $ 5,614 Other liabilities: Trading options for interest rate caps (a) — 15,783 — $ 15,783 — 4,617 — $ 4,617 Cash flow hedging interest rate swaps (a) — 59,147 — $ 59,147 — 70,589 — $ 70,589 Trading interest rate swaps (a) — 11,119 — $ 11,119 — 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 are classified as Level 3. 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 March 31, 2021 and December 31, 2020, is $656 and $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 months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Balance — beginning of year $ 5,614 $ 4,719 Additions / issuances — 2,512 Transfer from level 2 (a) — 17,634 Net collection activities (1,649) (9,680) Gains recognized in earnings — 122 Balance — end of year $ 3,965 $ 15,307 (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 March 31, 2021 and 2020. |
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 March 31, 2021 and December 31, 2020, respectively: Three Months Ended March 31, 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) $ 371,110 $ — $ 311,557 $ — Personal loans held for sale (b) — — 893,479 355,136 Retail installment contracts held for sale — — 674,048 $ 7,385 Auto loans impaired due to bankruptcy (c) 175,401 — 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) 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 three months ended March 31, 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 March 31, 2021 and December 31, 2020, respectively: Financial Instruments Fair Value at March 31, 2021 Valuation Technique Unobservable Inputs Range (weighted average) (a) Financial Assets: Retail installment contracts held for investment $ 3,965 Discounted Cash Flow Discount Rate 7%-13% (8%) Default Rate 4%-20% (6%) Prepayment Rate 4%-15% (15%) Loss Severity Rate 50%-60% (55%) (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 March 31, 2021 and December 31, 2020, and the level within the fair value hierarchy: March 31, 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) $ 415,969 $ 415,969 $ 415,969 $ — $ — $ 109,053 $ 109,053 $ 109,053 $ — $ — Finance receivables held for investment, net (b) 25,905,719 28,546,529 — — 28,546,529 26,806,606 29,464,066 — — 29,464,066 Restricted cash (a) 2,623,565 2,623,565 2,623,565 — — 2,221,094 2,221,094 2,221,094 — — Investments in debt securities held to maturity (c) 129,484 130,181 — 130,181 — 44,841 45,606 — 45,606 — Total $ 29,074,737 $ 31,716,244 $ 3,039,534 $ 130,181 $ 28,546,529 $ 29,181,594 $ 31,839,819 $ 2,330,147 $ 45,606 $ 29,464,066 Liabilities: Notes Payable: Facilities with third parties (d) $ 2,348,545 $ 2,348,545 $ — $ — $ 2,348,545 $ 4,159,955 $ 4,159,955 $ — $ — $ 4,159,955 Secured structured financings (e) 25,692,019 26,122,220 — 20,154,566 5,967,654 26,177,401 26,673,970 — 18,291,898 8,382,072 Facilities with Santander and related subsidiaries (f) 10,501,060 10,707,931 — — 10,707,931 10,801,318 11,333,823 — — 11,333,823 Total $ 38,541,624 $ 39,178,696 $ — $ 20,154,566 $ 19,024,130 $ 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 of all finance receivables at March 31, 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 Losses, Net (Tables)
Investment Losses, Net (Tables) | 3 Months Ended |
Mar. 31, 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 months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 March 31, 2020 Gain (loss) on sale of loans and leases $ 16,357 $ — Lower of cost or market adjustments (31,848) (62,958) Other gains, (losses and impairments), net 779 (468) $ (14,712) $ (63,426) |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 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 months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 Earnings per common share Net income (loss) $ 741,655 $ (3,987) Weighted average number of common shares outstanding before restricted participating shares (in thousands) 306,109 334,026 Weighted average number of common shares outstanding (in thousands) 306,109 334,026 Earnings per common share $ 2.42 $ (0.01) Earnings per common share - assuming dilution Net income (loss) $ 741,655 $ (3,987) Weighted average number of common shares outstanding (in thousands) 306,109 334,026 Effect of employee stock-based awards (in thousands) 216 320 Weighted average number of common shares outstanding - assuming dilution (in thousands) 306,325 334,346 Earnings per common share - assuming dilution $ 2.42 $ (0.01) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 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 March 31, 2021 December 31, 2020 MPLFA Revenue-sharing and gain/(loss), net-sharing payments $ 65,446 $ 43,778 Agreement with Bank of America Servicer performance fee 182 1,200 Agreement with CBP Loss-sharing payments 26 181 Other Contingencies Consumer arrangements 17,186 22,155 Legal and regulatory proceedings Aggregate legal and regulatory liabilities 28,812 31,936 Total commitments and contingencies $ 111,652 $ 99,250 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2021 and December 31, 2020 is as follows: March 31, 2021 December 31, 2020 Total serviced portfolio $ 171,450 $ 190,504 Cash collections due to owner 24,281 19,650 Servicing fees receivable 2,788 1,769 Other information related to the above transactions with SBNA is as follows: Three Months Ended March 31, 2021 March 31, 2020 Origination and renewal fee income from SBNA $ — $ 1,509 Servicing fees expenses charged by SBNA 90 74 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 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 three months ended March 31, 2021 is as follows: Shares Weighted Weighted Aggregate Options outstanding at January 1, 2021 169,369 $ 13.01 1.9 $ 1,543 Granted — — — — Exercised (47,359) 9.22 — 775 Expired — — — — Forfeited — — — — Other (a) — — — — Options outstanding at March 31, 2021 122,010 14.49 2.1 1,534 Options exercisable at March 31, 2021 122,010 $ 14.49 2.1 $ 1,534 Options expected to vest at March 31, 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 three months ended March 31, 2021 is as follows: Shares Weighted Weighted Aggregate Outstanding as of January 1, 2021 367,012 $ 19.78 0.8 $ 8,082 Granted 324,295 25.38 — — Vested (340,511) 22.27 — 8,638 Forfeited/canceled (7,362) 14.32 — — Non-vested at March 31, 2021 343,434 $ 22.66 1.5 $ 9,293 |
Description of Business, Basi_3
Description of Business, Basis of Presentation, and Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Originations and purchases of receivables held for sale | $ 0 | ||
Proceeds from sales and collections on receivables held for sale | [1] | 1,333,954 | $ 24,263 |
Proceeds from sales of finance receivables held for sale, originated as held for investment | [2] | $ 1,812,552 | $ 0 |
Number of reportable segments | segment | 1 | ||
Corrections | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Originations and purchases of receivables held for sale | $ 1,173,287 | ||
Proceeds from sales and collections on receivables held for sale | $ (81,506) | ||
SHUSA | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Ownership percentage held in the Company | 80.30% | ||
Public Shareholders | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Ownership percentage held in the Company | 19.70% | ||
[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 $188 million for loans originated as held for investment. |
Description of Business, Basi_4
Description of Business, Basis of Presentation, and Accounting Policies - Schedule of Error Corrections (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Originations and purchases of receivables held for sale | $ 0 | ||
Proceeds from sales and collections on receivables held for sale | [1] | 1,333,954 | $ 24,263 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 3,152,898 | 1,395,116 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Originations and purchases of portfolios on finance receivables held for investment | (4,492,802) | (3,939,255) | |
Collections on finance receivables held for investment | 3,610,444 | 3,294,442 | |
NET CASH PROVIDED BY INVESTING ACTIVITIES | 306,651 | $ (1,542,427) | |
As Reported | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Originations and purchases of receivables held for sale | (1,173,287) | ||
Proceeds from sales and collections on receivables held for sale | 1,415,460 | ||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,061,117 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Originations and purchases of portfolios on finance receivables held for investment | (3,319,515) | ||
Collections on finance receivables held for investment | 3,528,938 | ||
NET CASH PROVIDED BY INVESTING ACTIVITIES | 1,398,432 | ||
Corrections | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Originations and purchases of receivables held for sale | 1,173,287 | ||
Proceeds from sales and collections on receivables held for sale | (81,506) | ||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,091,781 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Originations and purchases of portfolios on finance receivables held for investment | (1,173,287) | ||
Collections on finance receivables held for investment | 81,506 | ||
NET CASH PROVIDED BY INVESTING ACTIVITIES | $ (1,091,781) | ||
[1] | Included in this balance is sales proceeds from Bluestem portfolio sale of $608 million for loans originated as held for sale. |
Finance Receivables - Held for
Finance Receivables - Held for Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for investment, net | $ 26,085,086 | $ 27,004,005 |
Finance lease receivables | 23,723 | 22,440 |
Recurring | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans at fair value | 3,965 | 5,614 |
Financial Asset Acquired with Credit Deterioration | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for investment, net | 4,655 | 6,197 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for investment, net | 26,056,708 | 26,975,368 |
Consumer Portfolio Segment | Recurring | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans at fair value | 3,965 | 5,614 |
Finance Leases Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance lease receivables | $ 23,723 | $ 22,440 |
Finance Receivables - Compositi
Finance Receivables - Composition of Held for Investment Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL | $ (6,005,115) | $ (6,110,633) |
Finance receivables held for investment, at amortized cost, net | 26,085,086 | 27,004,005 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for investment, at amortized cost, net | 26,056,708 | 26,975,368 |
Consumer Portfolio Segment | Non-TDR | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 27,442,853 | 28,977,299 |
ACL | (4,662,633) | (4,792,464) |
Discount (net of subvention and participation) | 166,786 | 66,373 |
Capitalized origination costs and fees | 92,954 | 97,638 |
Finance receivables held for investment, at amortized cost, net | $ 23,039,960 | $ 24,348,846 |
ACL as a percentage of unpaid principal balance | 17.00% | 16.50% |
ACL and discount as a percentage of unpaid principal balance | 16.40% | 16.30% |
Consumer Portfolio Segment | TDR | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 4,357,438 | $ 3,945,040 |
ACL | (1,338,708) | (1,314,170) |
Discount (net of subvention and participation) | (6,839) | (8,389) |
Capitalized origination costs and fees | 4,857 | 4,041 |
Finance receivables held for investment, at amortized cost, net | $ 3,016,748 | $ 2,626,522 |
ACL as a percentage of unpaid principal balance | 30.70% | 33.30% |
ACL and discount as a percentage of unpaid principal balance | 30.90% | 33.50% |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Schedule Of Financing Receivables [Line Items] | |||
Loans classified as non-performing, period for classification | 60 days | ||
Loans Acquired Individually | |||
Schedule Of Financing Receivables [Line Items] | |||
Purchase of portfolios of finance receivables held for investment | $ 0 | $ 0 | |
Chrysler Capital Loans | |||
Schedule Of Financing Receivables [Line Items] | |||
Purchase of portfolios of finance receivables held for investment | $ 3,659,282,000 | $ 2,621,828,000 | |
Chrysler Capital Loans | Credit Concentration Risk | Accounts Receivable | |||
Schedule Of Financing Receivables [Line Items] | |||
Concentration risk percentage | 57.00% | 53.00% | |
Consumer Portfolio Segment | Nonperforming Financial Instruments | |||
Schedule Of Financing Receivables [Line Items] | |||
Financing receivable, purchased with credit deterioration, amount at par value | $ 0 | $ 76,878,000 | |
Loans classified as non-performing, period for classification | 60 days | ||
Consumer Portfolio Segment | Geographic Concentration Risk | Borrower Location | Texas | |||
Schedule Of Financing Receivables [Line Items] | |||
Concentration risk percentage | 16.00% | ||
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 | 6.00% | ||
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 | $ 902,246,000 | $ 864,680,000 |
Finance Receivables - Schedule
Finance Receivables - Schedule of Carrying Values of Finance Receivables Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivable held for sale | $ 0 | $ 1,567,527 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivable held for sale | 0 | 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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Proceeds from sales of charged-off assets to third parties | $ 0 | $ 20,875 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sales of retail installment contracts to third parties | 2,380,785 | 0 |
Consumer Portfolio Segment | Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sales of retail installment contracts to third parties | $ 1,253,746 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance — beginning of period | $ 6,110,633 | |
Credit loss expense | 136,209 | $ 907,887 |
Balance — end of period | 6,005,115 | |
Financing receivable, allowance for credit loss, period increase (decrease) | (100,000) | |
Non-TDR | Consumer Portfolio Segment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance — beginning of period | 4,792,464 | 2,123,878 |
Credit loss expense | 40,059 | 757,193 |
Charge-offs | (586,793) | (899,550) |
Recoveries | 416,903 | 470,669 |
Balance — end of period | 4,662,633 | 4,482,663 |
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 | 1,314,170 | 914,718 |
Credit loss expense | 98,722 | 150,850 |
Charge-offs | (202,461) | (289,567) |
Recoveries | 128,277 | 125,402 |
Balance — end of period | 1,338,708 | 973,236 |
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 ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonperforming loans, period for classification | 60 days | |
Total delinquent balance at amortized cost | $ 2,109,578,000 | $ 3,011,763,000 |
Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonperforming loans, period for classification | 90 days | |
Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | $ 2,108,594,000 | 3,010,635,000 |
Financing receivable, recorded investment, 90 days past due and still accruing | $ 0 | $ 78,880,000 |
Allowance for Credit Loss and_5
Allowance for Credit Loss and Credit Quality - Summary of Delinquencies (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | $ 2,109,578 | $ 3,011,763 |
Total delinquent principal, percent | 6.60% | 9.10% |
Accrued interest receivable | $ 345,769 | $ 415,765 |
Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | 984 | 1,128 |
Financial Asset Originated and Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Past Due [Line Items] | ||
Accrued interest receivable | 49,165 | 73,794 |
Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | 2,108,594 | 3,010,635 |
Accrued interest receivable | 346,000 | 416,000 |
30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | $ 1,410,573 | $ 1,972,453 |
Total delinquent principal, percent | 4.40% | 6.00% |
30-59 days past due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | $ 599 | $ 687 |
30-59 days past due | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | 1,409,974 | 1,971,766 |
Over 59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | $ 699,005 | $ 1,039,310 |
Total delinquent principal, percent | 2.20% | 3.10% |
Over 59 days | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | $ 385 | $ 441 |
Over 59 days | Consumer Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Total delinquent balance at amortized cost | $ 698,620 | $ 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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | $ 804,636 | $ 1,133,047 |
Non-accrual loans with no allowance | 175,402 | 191,785 |
Interest income recognized on nonaccrual loans (YTD) | $ 26,171 | $ 108,546 |
Non-accrual loans as a percent of total amortized cost | 2.50% | 3.50% |
Non-TDR | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | $ 544,228 | $ 748,026 |
Non-accrual loans with no allowance | 133,628 | 145,287 |
Interest income recognized on nonaccrual loans (YTD) | $ 16,959 | $ 72,926 |
Non-accrual loans as a percent of total amortized cost | 1.70% | 2.30% |
TDR | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Non-accrual loans | $ 260,408 | $ 385,021 |
Non-accrual loans with no allowance | 41,774 | 46,498 |
Interest income recognized on nonaccrual loans (YTD) | $ 9,212 | $ 35,620 |
Non-accrual loans as a percent of total amortized cost | 0.80% | 1.20% |
Allowance for Credit Loss and_7
Allowance for Credit Loss and Credit Quality - Credit Risk Profile (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment [Line Items] | ||
Total Amount | $ 32,090,201 | $ 33,114,638 |
Accrued interest receivable | 345,769 | 415,765 |
Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | 4,314,000 | |
2020 | 11,891,000 | 14,617,000 |
2019 | 7,700,000 | 8,775,000 |
2018 | 4,350,000 | 4,979,000 |
2017 | 1,886,000 | 2,228,000 |
2016 | 1,102,000 | 1,363,000 |
Prior/2015 | 815,000 | 828,000 |
Prior | 292,000 | |
Total Amount | $ 32,058,000 | $ 33,082,000 |
Total % | 100.00% | 100.00% |
Accrued interest receivable | $ 346,000 | $ 416,000 |
No FICO | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | 568,000 | |
2020 | 1,564,000 | 1,760,000 |
2019 | 997,000 | 1,151,000 |
2018 | 458,000 | 530,000 |
2017 | 411,000 | 501,000 |
2016 | 191,000 | 247,000 |
Prior/2015 | 107,000 | 128,000 |
Prior | 26,000 | |
Total Amount | $ 4,296,000 | $ 4,343,000 |
Total % | 13.40% | 13.10% |
FICO Band Less than 540 | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | $ 523,000 | |
2020 | 1,649,000 | $ 1,789,000 |
2019 | 1,226,000 | 1,370,000 |
2018 | 806,000 | 913,000 |
2017 | 391,000 | 454,000 |
2016 | 221,000 | 263,000 |
Prior/2015 | 211,000 | 186,000 |
Prior | 90,000 | |
Total Amount | $ 5,027,000 | $ 5,065,000 |
Total % | 15.70% | 15.30% |
FICO Band 540-599 | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | $ 1,384,000 | |
2020 | 3,923,000 | $ 4,269,000 |
2019 | 2,685,000 | 3,005,000 |
2018 | 1,526,000 | 1,736,000 |
2017 | 578,000 | 673,000 |
2016 | 351,000 | 423,000 |
Prior/2015 | 272,000 | 264,000 |
Prior | 96,000 | |
Total Amount | $ 10,719,000 | $ 10,466,000 |
Total % | 33.40% | 31.70% |
FICO Band 600-639 | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | $ 914,000 | |
2020 | 2,424,000 | $ 2,759,000 |
2019 | 1,590,000 | 1,838,000 |
2018 | 853,000 | 990,000 |
2017 | 283,000 | 335,000 |
2016 | 185,000 | 230,000 |
Prior/2015 | 124,000 | 126,000 |
Prior | 47,000 | |
Total Amount | $ 6,373,000 | $ 6,325,000 |
Total % | 19.90% | 19.10% |
FICO Band Greater than 640 | Consumer Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | $ 925,000 | |
2020 | 2,331,000 | $ 4,040,000 |
2019 | 1,202,000 | 1,411,000 |
2018 | 707,000 | 810,000 |
2017 | 223,000 | 265,000 |
2016 | 154,000 | 200,000 |
Prior/2015 | 101,000 | 124,000 |
Prior | 33,000 | |
Total Amount | $ 5,643,000 | $ 6,883,000 |
Total % | 17.60% | 20.80% |
Allowance for Credit Loss and_8
Allowance for Credit Loss and Credit Quality - Troubled Debt Restructurings, Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 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 | $ 4,430,512,000 | $ 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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding recorded investment | $ 4,430,512 | $ 4,011,780 |
Impairment | (1,338,708) | (1,314,170) |
Amortized cost including accrued interest, net of impairment | 3,091,804 | 2,697,610 |
Collateral Dependent | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding recorded investment | 62,800 | 67,900 |
TDR write down | $ 21,100 | $ 21,400 |
Allowance for Credit Loss an_10
Allowance for Credit Loss and Credit Quality - Delinquent TDRs (Details) - Consumer Portfolio Segment - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Total TDR principal | $ 4,430,512 | $ 4,011,780 |
Equal to or greater than 30 days past due | ||
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Total TDR principal | 796,487 | 982,336 |
30-59 days past due | ||
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Total TDR principal | 548,849 | 637,560 |
Over 59 days | ||
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Total TDR principal | $ 247,638 | $ 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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest income recognized | $ 1,304,651 | $ 1,273,819 |
Consumer Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Average amortized cost (including accrued interest) | 4,265,282 | 3,687,797 |
Consumer Portfolio Segment | TDR | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Interest income recognized | $ 209,281 | $ 156,238 |
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 | |
Mar. 31, 2021USD ($)contract | Mar. 31, 2020USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost (including accrued interest) before TDR | $ 902,144 | $ 177,215 |
Amortized cost (including accrued interest) after TDR (a) | $ 907,907 | $ 177,604 |
Number of contracts | contract | 44,191,000 | 9,826,000 |
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 | |
Mar. 31, 2021USD ($)contract | Mar. 31, 2020USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Amortized cost (including accrued interest) in TDRs that subsequently defaulted | $ | $ 110,179 | $ 69,335 |
Number of contracts | contract | 5,637 | 4,085 |
Leases (SC as Lessor) - Summary
Leases (SC as Lessor) - Summary of Leased Vehicles (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Lessor, Lease, Description [Line Items] | ||
Less: accumulated depreciation | $ (106,292) | $ (104,452) |
Leased Vehicles | ||
Lessor, Lease, Description [Line Items] | ||
Leased vehicles | 21,907,106 | 22,056,063 |
Less: accumulated depreciation | (4,633,289) | (4,796,595) |
Depreciated net capitalized cost | 17,273,817 | 17,259,468 |
Manufacturer subvention payments, net of accretion | (867,231) | (934,381) |
Origination fees and other costs | 71,638 | 66,020 |
Net book value | $ 16,478,224 | $ 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 | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 2,164,161 |
2022 | 1,678,058 |
2023 | 878,677 |
2024 | 72,105 |
2025 | 234 |
Thereafter | 0 |
Total | $ 4,793,235 |
Leases (SC as Lessor) - Summa_2
Leases (SC as Lessor) - Summary of Finance Lease Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Gross investment in finance leases | $ 35,745 | $ 34,461 |
Origination fees and other | 298 | 289 |
Less: unearned income | (8,546) | (8,311) |
Net investment in finance leases before allowance | 27,497 | 26,439 |
Less: allowance for lease losses | (3,774) | (3,999) |
Net investment in finance leases | $ 23,723 | $ 22,440 |
Leases (SC as Lessor) - Futur_2
Leases (SC as Lessor) - Future Minimum Rental Receivable under Finance Leases (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 8,338 |
2022 | 9,957 |
2023 | 8,188 |
2024 | 5,839 |
2025 | 3,153 |
Thereafter | 270 |
Total | $ 35,745 |
Other Assets - Summary (Details
Other Assets - Summary (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Jun. 30, 2019 | May 31, 2013 | Mar. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||||
Vehicles | $ 371,110 | $ 311,557 | ||
Manufacturer subvention payments receivable | 43,744 | 57,996 | ||
Upfront fee | 61,862 | 69,286 | ||
Derivative - collateral | 84,002 | 92,132 | ||
Operating leases (Right-of-use-assets) | 50,468 | 46,441 | ||
Available-for-sale debt securities | 95,689 | 95,654 | ||
Held-to-maturity debt securities | 129,537 | 44,875 | ||
Equity securities not held for trading | 3,725 | 1,380 | ||
Prepaids | 54,282 | 45,667 | ||
Accounts receivable | 26,167 | 34,607 | ||
Federal and State tax receivable | 94,143 | 99,666 | ||
Other | 48,142 | 68,725 | ||
Other assets | 1,079,419 | 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 | $ 16,548 | $ 4,740 |
Other Assets - Operating Leases
Other Assets - Operating Leases, Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets - $5,886 and $14,451 held at affiliates, respectively | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities - $1,438 and $463 held at affiliates, respectively | ||
Lease expense | $ 3,267 | $ 3,562 | |
Operating cash flows from operating leases | 4,372 | ||
Equity securities not held for trading | $ 3,725 | $ 1,380 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease renewal term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease renewal term | 15 years |
Other Assets - Supplemental Inf
Other Assets - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other Assets, Leases And Investments [Abstract] | ||
Operating leases-right of use assets | $ 50,468 | $ 46,441 |
Other liabilities | $ 68,187 | |
Weighted average lease term | 4 years 10 months 24 days | |
Weighted average discount rate | 3.20% |
Other Assets - Maturity of Oper
Other Assets - Maturity of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Other Assets, Leases And Investments [Abstract] | |
2021 | $ 12,547 |
2022 | 16,215 |
2023 | 12,761 |
2024 | 12,701 |
2025 | 12,765 |
Thereafter | 6,926 |
Total | 73,915 |
Less: Interest | (5,728) |
Present value of lease liabilities | $ 68,187 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale debt securities (US Treasury securities) | ||
Amortized cost (before unrealized gains / losses) | $ 93,535 | |
Gross Unrealized gain | 2,154 | |
Gross Unrealized loss | 0 | |
Fair value | 95,689 | $ 95,654 |
Held-to-maturity debt securities (Asset-Backed Notes) | ||
Total | 129,484 | |
Gross Unrealized gain | 697 | |
Gross Unrealized loss | 0 | |
Fair value | $ 130,181 |
Other Assets - Contractual Matu
Other Assets - Contractual Maturities of AFS and HTM Debt Securities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Amortized cost | |
Due within one year | $ 39,210 |
Due after one year but within 5 years | 54,325 |
Due after 5 year but within 10 years | 0 |
Total | 93,535 |
Fair value | |
Due within one year | 39,836 |
Due after one year but within 5 years | 55,853 |
Due after 5 year but within 10 years | 0 |
Total | 95,689 |
Amortized cost | |
Due within one year | 3,134 |
Due after one year but within 5 years | 53,703 |
Due after 5 year but within 10 years | 72,647 |
Total | 129,484 |
Fair value | |
Due within one year | 3,134 |
Due after one year but within 5 years | 53,967 |
Due after 5 year but within 10 years | 73,080 |
Fair value | $ 130,181 |
Variable Interest Entities - On
Variable Interest Entities - On-balance Sheet Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Assets | |||
Restricted cash | $ 2,623,565 | $ 2,221,094 | $ 1,987,004 |
Finance receivables held for sale, net | 0 | 1,567,527 | |
Finance receivables held for investment, net | 26,085,086 | 27,004,005 | |
Various other assets | 1,079,419 | 972,726 | |
TOTAL ASSETS | 47,234,002 | 48,887,493 | |
Liabilities | |||
Notes payable | 38,541,624 | 41,138,674 | |
Various other liabilities | 395,222 | 331,693 | |
TOTAL LIABILITIES | 41,002,149 | 43,265,532 | |
Leased Vehicles | |||
Assets | |||
Leased vehicles, net | 16,478,224 | 16,391,107 | |
Variable Interest Entity, Primary Beneficiary | |||
Assets | |||
Restricted cash | 2,040,255 | 1,737,021 | |
Finance receivables held for sale, net | 0 | 581,938 | |
Finance receivables held for investment, net | 22,335,539 | 22,572,549 | |
Various other assets | 842,105 | 791,306 | |
TOTAL ASSETS | 41,696,123 | 42,073,921 | |
Liabilities | |||
Notes payable | 29,670,906 | 31,700,709 | |
Various other liabilities | 55,669 | 84,922 | |
TOTAL LIABILITIES | 29,726,575 | 31,785,631 | |
Variable Interest Entity, Primary Beneficiary | Leased Vehicles | |||
Assets | |||
Leased vehicles, net | $ 16,478,224 | $ 16,391,107 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 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 | $ 27,284,782,000 | $ 27,658,182,000 | |
Receivables securitized | 4,123,051,000 | $ 6,675,730,000 | |
VIE, Not Primary Beneficiary | |||
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |||
Gross retail installment contracts transferred and serviced | 3,707,862,000 | $ 2,226,786,000 | |
Receivables securitized | 1,891,278,000 | 0 | |
Off-balance securitizations loss | 7,233,000 | $ 0 | |
Cash proceeds received for assets derecognized | $ 0 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Cash Flows Received from Securitization Trusts (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Receivables securitized | $ 4,123,051,000 | $ 6,675,730,000 |
Net proceeds from new securitizations | 3,586,124,000 | 3,876,529,000 |
Net proceeds from retained bonds | 63,781,000 | 54,467,000 |
Cash received for servicing fees | 228,188,000 | 246,743,000 |
Net distributions from Trusts | 1,140,377,000 | 866,936,000 |
Total cash received from Trusts | 5,018,470,000 | 5,044,675,000 |
VIE, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Receivables securitized | 1,891,278,000 | 0 |
Net proceeds from new securitizations | 1,779,532,000 | 0 |
Cash received for servicing fees | 6,726,000 | 6,179,000 |
Total cash received from Trusts | $ 1,786,258,000 | $ 6,179,000 |
Variable Interest Entities - Of
Variable Interest Entities - Off-balance Sheet Variable Interest Entities Portfolio (Details) - VIE, Not Primary Beneficiary - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Total serviced | $ 3,707,862 | $ 2,226,786 |
Third party SCART serviced securitizations | ||
Variable Interest Entity [Line Items] | ||
Total serviced | 2,623,575 | 929,429 |
Third party CCAP serviced securitizations | ||
Variable Interest Entity [Line Items] | ||
Total serviced | 63,188 | 82,713 |
Santander | ||
Variable Interest Entity [Line Items] | ||
Total serviced | $ 1,021,099 | $ 1,214,644 |
Debt - Total Borrowings and Oth
Debt - Total Borrowings and Other Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total borrowings and other debt obligations | $ 38,541,624 | $ 41,138,674 |
Secured Structured Financings | ||
Debt Instrument [Line Items] | ||
Notes Payable — Secured Structured Financings | 25,692,019 | 26,177,401 |
Secured Structured Financings | Parent | ||
Debt Instrument [Line Items] | ||
Notes Payable — Secured Structured Financings | 25,692,019 | 26,177,401 |
Facilities with third parties | ||
Debt Instrument [Line Items] | ||
Notes payable | 2,348,545 | 4,159,955 |
Facilities with Santander and related subsidiaries | ||
Debt Instrument [Line Items] | ||
Notes payable | 10,500,000 | 10,800,000 |
Notes Payable - Facilities with Santander and Related Subsidiaries | $ 10,501,060 | $ 10,801,318 |
Debt - Schedule of Credit Facil
Debt - Schedule of Credit Facilities (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Total revolving credit facilities | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | $ 12,848,545,000 | $ 14,959,955,000 |
Committed Amount | 25,250,000,000 | 25,717,967,000 |
Assets Pledged | 6,472,632,000 | 7,063,398,000 |
Restricted Cash Pledged | 2,358,000 | 2,886,000 |
Facilities with third parties | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 2,348,545,000 | 4,159,955,000 |
Committed Amount | 11,750,000,000 | 11,917,967,000 |
Assets Pledged | 6,472,632,000 | 7,063,398,000 |
Restricted Cash Pledged | 2,358,000 | 2,886,000 |
Warehouse line, due August 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 167,000,000 | 0 |
Committed Amount | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 1.95% | 1.50% |
Assets Pledged | $ 592,553,000 | $ 159,348,000 |
Restricted Cash Pledged | 0 | 0 |
Warehouse line, due March 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 1,072,345,000 | 942,845,000 |
Committed Amount | $ 1,250,000,000 | $ 1,250,000,000 |
Effective Rate | 0.63% | 1.34% |
Assets Pledged | $ 1,719,708,000 | $ 1,621,206,000 |
Restricted Cash Pledged | 1,000 | 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 | 2.59% | 1.85% |
Assets Pledged | $ 159,339,000 | $ 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 | 3.22% | 3.45% |
Assets Pledged | $ 1,378,224,000 | $ 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 | 3.96% | 3.07% |
Assets Pledged | $ 118,970,000 | $ 243,649,000 |
Restricted Cash Pledged | 570,000 | 1,201,000 |
Warehouse line, due October 2022 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 658,500,000 | 845,800,000 |
Committed Amount | $ 2,100,000,000 | $ 2,100,000,000 |
Effective Rate | 3.32% | 3.29% |
Assets Pledged | $ 968,850,000 | $ 1,156,885,000 |
Restricted Cash Pledged | 103,000 | 0 |
Warehouse line, due January 2023 | ||
Line of Credit Facility [Line Items] | ||
Utilized Balance | 450,700,000 | |
Committed Amount | $ 1,000,000,000 | |
Effective Rate | 1.16% | |
Assets Pledged | $ 1,142,351,000 | |
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 | 0.92% | 1.18% |
Assets Pledged | $ 392,637,000 | $ 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 | 1,684,000 | 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 | 10,500,000,000 | 10,800,000,000 |
Committed Amount | 13,500,000,000 | 13,800,000,000 |
Assets Pledged | 0 | 0 |
Restricted Cash Pledged | 0 | 0 |
Fair value hedge adjustment | 1,100,000 | 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 | 3.70% | 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 | 3.95% | 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 | 5.25% | 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 | 5.00% | 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 | 250,000,000 |
Committed Amount | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 2.25% | 2.25% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 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 | 3.80% | 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 | 3.00% | 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 | 6.13% | 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 | 3.30% | 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 | 3.90% | 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 | 4.20% | 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 | 650,000,000 |
Committed Amount | $ 650,000,000 | $ 650,000,000 |
Effective Rate | 3.44% | 3.44% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 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 | 3.27% | 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 | 3.99% | 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 | 1.34% | 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 | 1.04% | 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 | 2.14% | 2.19% |
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 | 3.31% | |
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 | 3.34% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | $ 0 |
Debt - Facilities with Santande
Debt - Facilities with Santander and Related Subsidiaries, Narrative (Details) | Mar. 31, 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 | 6,500,000,000 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Balance | $ 25,692,019 | $ 26,177,401 |
Initial Note Amounts Issued | 56,711,158 | 55,523,298 |
Collateral | 34,874,329 | 36,254,700 |
Restricted Cash | 2,037,896 | 1,734,136 |
Public securitizations | ||
Debt Instrument [Line Items] | ||
Balance | 20,025,778 | 18,942,160 |
Initial Note Amounts Issued | 45,963,595 | 44,775,735 |
Collateral | 25,939,687 | 25,022,577 |
Restricted Cash | 2,015,388 | 1,710,351 |
2016 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | 91,428 | 259,078 |
Initial Note Amounts Issued | 1,250,000 | 2,519,810 |
Collateral | 160,734 | 354,985 |
Restricted Cash | $ 46,666 | $ 85,041 |
2016 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.34% | 1.63% |
2016 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.34% | |
2017 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 864,178 | $ 1,049,867 |
Initial Note Amounts Issued | 8,262,940 | 8,262,940 |
Collateral | 1,399,990 | 1,661,845 |
Restricted Cash | $ 232,606 | $ 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 | $ 2,250,155 | $ 2,723,099 |
Initial Note Amounts Issued | 11,000,280 | 12,039,840 |
Collateral | 3,435,529 | 4,130,936 |
Restricted Cash | $ 372,049 | $ 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 | $ 5,959,087 | $ 6,653,226 |
Initial Note Amounts Issued | 11,924,720 | 11,924,720 |
Collateral | 7,691,626 | 8,582,241 |
Restricted Cash | $ 576,514 | $ 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 | $ 7,431,733 | $ 8,256,890 |
Initial Note Amounts Issued | 10,028,425 | 10,028,425 |
Collateral | 9,345,987 | 10,292,570 |
Restricted Cash | $ 633,342 | $ 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 | $ 3,429,197 | |
Initial Note Amounts Issued | 3,497,230 | |
Collateral | 3,905,821 | |
Restricted Cash | $ 154,211 | |
2021 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 0.50% | |
2021 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 0.51% | |
Privately issued amortizing notes | ||
Debt Instrument [Line Items] | ||
Balance | $ 5,666,241 | $ 7,235,241 |
Initial Note Amounts Issued | 10,747,563 | 10,747,563 |
Collateral | 8,934,642 | 11,232,123 |
Restricted Cash | 22,508 | 23,785 |
2013 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | 521,397 | 777,210 |
Initial Note Amounts Issued | $ 1,537,025 | $ 1,537,025 |
Initial Weighted Average Interest Rate | 1.28% | 1.28% |
Collateral | $ 1,521,220 | $ 1,843,443 |
Restricted Cash | 751 | 751 |
2018 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | 1,837,240 | 2,768,145 |
Initial Note Amounts Issued | 4,186,002 | 4,186,002 |
Collateral | 2,774,962 | 4,223,567 |
Restricted Cash | $ 6,561 | $ 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 | 3.53% | 3.53% |
2019 Private issuance | ||
Debt Instrument [Line Items] | ||
Balance | $ 2,335,820 | $ 2,584,974 |
Initial Note Amounts Issued | 3,524,536 | 3,524,536 |
Collateral | 3,287,079 | 3,632,833 |
Restricted Cash | $ 10,294 | $ 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 | $ 971,784 | $ 1,104,912 |
Initial Note Amounts Issued | 1,500,000 | 1,500,000 |
Collateral | 1,351,381 | 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 | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Private issuance notes secured with vehicle lease | $ 8,700,000 | $ 8,700,000 | |
Amortized debt issuance costs | 10,599 | $ 9,352 | |
Interest expense on secured structured financing | $ 122,514 | $ 198,463 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | |||
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 |
Shareholders' Equity - Tender O
Shareholders' Equity - Tender Offer and Other Share Repurchase Programs (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares purchased (in shares) | 357,747 | 18,361,168 |
Average price per share (in dollars per share) | $ 26.46 | $ 25.44 |
Cost of share purchased | $ 9,468 | $ 467,082 |
Tender Offer | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares purchased (in shares) | 0 | 17,514,707 |
Average price per share (in dollars per share) | $ 0 | $ 26 |
Cost of share purchased | $ 0 | $ 455,382 |
Other Share Repurchases | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares purchased (in shares) | 357,747 | 846,461 |
Average price per share (in dollars per share) | $ 26.46 | $ 13.82 |
Cost of share purchased | $ 9,468 | $ 11,700 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 5,621,961 | $ 7,318,620 |
Other comprehensive income (loss) before reclassifications (gross) | 2,970 | (37,585) |
Amounts (gross) reclassified out of accumulated other comprehensive income (loss) | 5,778 | 623 |
Ending balance | 6,231,853 | 5,146,103 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (50,566) | (26,693) |
Ending balance | $ (41,818) | $ (63,655) |
Shareholders' Equity - Reclassi
Shareholders' Equity - Reclassification of Amounts Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||
Interest expense | $ 253,537 | $ 328,834 |
Income tax expense | (234,457) | 2,458 |
Net income (loss) | 741,655 | (3,987) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||
Net income (loss) | 5,778 | 623 |
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 | 7,657 | 824 |
Income tax expense | $ (1,879) | $ (201) |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) | Mar. 31, 2021$ / shares |
Dividends Payable [Line Items] | |
Dividends paid per share (in dollars per share) | $ 0.44 |
Dividends, Cash | |
Dividends Payable [Line Items] | |
Dividends paid per share (in dollars per share) | 0.22 |
Dividends, Special | |
Dividends Payable [Line Items] | |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Asset | $ 16,548 | $ 4,740 |
Liability | (86,049) | (88,140) |
Interest rate swaps | Not Designated As Hedges | ||
Derivative [Line Items] | ||
Notional | 250,000 | 250,000 |
Asset | 0 | 0 |
Liability | (11,119) | (12,934) |
Interest rate swaps | Cash Flow Hedging | Designated as Hedges | ||
Derivative [Line Items] | ||
Notional | 2,150,000 | 2,450,000 |
Asset | 765 | 123 |
Liability | (59,147) | (70,589) |
Interest rate cap agreements | ||
Derivative [Line Items] | ||
Notional | 9,338,393 | 10,199,134 |
Asset | 15,783 | 4,617 |
Liability | 0 | 0 |
Options for interest rate cap agreements | ||
Derivative [Line Items] | ||
Notional | 9,338,393 | 10,199,134 |
Asset | 0 | 0 |
Liability | $ (15,783) | $ (4,617) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Assets Presented in the Consolidated Balance Sheet | $ 16,548 | $ 4,740 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 0 |
Total derivative assets | 16,548 | 4,740 |
Total financial assets | 16,548 | 4,740 |
Collateral Received | (16,500) | (4,740) |
Collateral Received, Total financial assets | (16,500) | (4,740) |
Net Amount | 48 | 0 |
Net Amount, Total derivative assets | 48 | 0 |
Net Amount, Total financial assets | 48 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Liabilities Presented in the Consolidated Balance Sheet | 86,049 | 88,140 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 0 |
Total derivative liabilities | 86,049 | 88,140 |
Total financial liabilities | 86,049 | 88,140 |
Collateral Pledged | (77,839) | (88,140) |
Collateral Pledged, Total financial liabilities | (77,839) | (88,140) |
Net Amount | 8,210 | 0 |
Net Amount, Total derivative liabilities | 8,210 | 0 |
Net Amount, Total financial liabilities | 8,210 | 0 |
Interest rate swaps | Third Party | ||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Assets Presented in the Consolidated Balance Sheet | 765 | 123 |
Collateral Received | (765) | (123) |
Net Amount | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Liabilities Presented in the Consolidated Balance Sheet | 70,266 | 83,523 |
Collateral Pledged | (70,266) | (83,523) |
Net Amount | 0 | 0 |
Interest rate caps | ||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Total derivative assets | 15,783 | 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 | 14,345 | 4,154 |
Collateral Received | (14,345) | (4,154) |
Net Amount | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Liabilities Presented in the Consolidated Balance Sheet | 14,345 | 4,154 |
Collateral Pledged | (6,323) | (4,154) |
Net Amount | 8,022 | 0 |
Interest rate caps | Santander and Affiliates | ||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Assets Presented in the Consolidated Balance Sheet | 1,438 | 463 |
Collateral Received | (1,390) | (463) |
Net Amount | 48 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Liabilities Presented in the Consolidated Balance Sheet | 1,438 | 463 |
Collateral Pledged | (1,250) | (463) |
Net Amount | $ 188 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Details) - Interest Rate Swaps - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Designated as Hedges | ||
Derivative Instruments Gain Loss [Line Items] | ||
Recognized in Earnings | $ 0 | $ 0 |
Gross Gains (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | 4,358 | (52,386) |
Gross amount Reclassified From Accumulated Other Comprehensive Income to Interest Expense | (7,657) | (824) |
Not Designated As Hedges | Interest Expense | ||
Derivative Instruments Gain Loss [Line Items] | ||
Recognized in Earnings | $ (244) | $ 9,171 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Additional Information (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated unrealized loss to be reclassified from AOCI to interest expense in next 12 months | $ 29,585 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | $ 95,689 | $ 95,654 |
Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — available-for-sale-debt securities | 95,689 | 95,654 |
Retail installment contracts, non-accrual status | 3,965 | 5,614 |
Retail installment contracts, non-accrual status | 656 | 1,129 |
Recurring | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 15,783 | 4,617 |
Recurring | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 11,119 | 12,934 |
Recurring | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 765 | 123 |
Other liabilities | 59,147 | 70,589 |
Recurring | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 15,783 | 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 | 95,689 | 95,654 |
Retail installment contracts, non-accrual status | 0 | 0 |
Recurring | Level 2 | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets — derivative instruments | 15,783 | 4,617 |
Recurring | Level 2 | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 11,119 | 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 | 765 | 123 |
Other liabilities | 59,147 | 70,589 |
Recurring | Level 2 | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other liabilities | 15,783 | 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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance — beginning of year | $ 5,614 | $ 4,719 |
Additions / issuances | 0 | 2,512 |
Transfers from level 2 | 0 | 17,634 |
Net collection activities | (1,649) | (9,680) |
Gains recognized in earnings | 0 | 122 |
Balance — end of year | $ 3,965 | $ 15,307 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Vehicles | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 371,110 | $ 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 | 0 | 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 | 175,401 | 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 | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Retail installment contracts, non-accrual status | $ 3,965 | $ 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 | $ 3,965 | $ 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 | 0.08 | |
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 | 0.20 | 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 | 0.06 | |
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 | 0.55 | |
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 | $ 0 | $ 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 | $ 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 | 0.015 | |
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 | 0.025 | |
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 | 0.02 | |
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 | 0.04 | |
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 | 0.10 | |
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 | |
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 | |
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 | 0.60 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Summary of Fair Value Estimates, Methods and Assumptions (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Investments in debt securities held to maturity | $ 129,484 | |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 415,969 | $ 109,053 |
Finance receivables held for investment, net | 25,905,719 | 26,806,606 |
Restricted cash | 2,623,565 | 2,221,094 |
Investments in debt securities held to maturity | 129,484 | 44,841 |
Total | 29,074,737 | 29,181,594 |
Liabilities: | ||
Notes payable — facilities with third parties | 2,348,545 | 4,159,955 |
Notes payable — secured structured financings | 25,692,019 | 26,177,401 |
Notes payable — facilities with Santander and related subsidiaries | 10,501,060 | 10,801,318 |
Total | 38,541,624 | 41,138,674 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 415,969 | 109,053 |
Finance receivables held for investment, net | 28,546,529 | 29,464,066 |
Restricted cash | 2,623,565 | 2,221,094 |
Investments in debt securities held to maturity | 130,181 | 45,606 |
Total | 31,716,244 | 31,839,819 |
Liabilities: | ||
Notes payable — facilities with third parties | 2,348,545 | 4,159,955 |
Notes payable — secured structured financings | 26,122,220 | 26,673,970 |
Notes payable — facilities with Santander and related subsidiaries | 10,707,931 | 11,333,823 |
Total | 39,178,696 | 42,167,748 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 415,969 | 109,053 |
Finance receivables held for investment, net | 0 | 0 |
Restricted cash | 2,623,565 | 2,221,094 |
Investments in debt securities held to maturity | 0 | 0 |
Total | 3,039,534 | 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 | 0 | 0 |
Restricted cash | 0 | 0 |
Investments in debt securities held to maturity | 130,181 | 45,606 |
Total | 130,181 | 45,606 |
Liabilities: | ||
Notes payable — facilities with third parties | 0 | 0 |
Notes payable — secured structured financings | 20,154,566 | 18,291,898 |
Notes payable — facilities with Santander and related subsidiaries | 0 | 0 |
Total | 20,154,566 | 18,291,898 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Finance receivables held for investment, net | 28,546,529 | 29,464,066 |
Restricted cash | 0 | 0 |
Investments in debt securities held to maturity | 0 | 0 |
Total | 28,546,529 | 29,464,066 |
Liabilities: | ||
Notes payable — facilities with third parties | 2,348,545 | 4,159,955 |
Notes payable — secured structured financings | 5,967,654 | 8,382,072 |
Notes payable — facilities with Santander and related subsidiaries | 10,707,931 | 11,333,823 |
Total | $ 19,024,130 | $ 23,875,850 |
Investment Losses, Net - Schedu
Investment Losses, Net - Schedule of Investment Gains (Losses), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gain (loss) on sale of loans and leases | $ 16,357 | $ 0 |
Lower of cost or market adjustments | (31,848) | (62,958) |
Other gains, (losses and impairments), net | 779 | (468) |
Investment losses, net | $ (14,712) | $ (63,426) |
Investment Losses, Net - Additi
Investment Losses, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Lower of cost or market adjustment, customer default activity | $ 65,047 | $ 110,199 |
Lower of cost or market adjustment | $ 33,199 | $ 47,241 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 234,457,000 | $ (2,458,000) | |
Effective income tax rate | 24.00% | 38.10% | |
Related party income tax receivables | $ 648,000 | $ 11,191,000 | |
Earnings that are considered indefinitely reinvested | $ 0 | $ 0 |
Computation of Basic and Dilu_3
Computation of Basic and Diluted Earnings per Common Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 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 | 34,554 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings per common share | ||
Net income (loss) | $ 741,655 | $ (3,987) |
Weighted average number of common shares outstanding before restricted participating shares (in shares) | 306,109,000 | 334,026,000 |
Weighted average number of common shares outstanding (in shares) | 306,108,987 | 334,026,052 |
Earnings per common share (in dollars per share) | $ 2.42 | $ (0.01) |
Earnings per common share - assuming dilution | ||
Net income (loss) | $ 741,655 | $ (3,987) |
Weighted average number of common shares outstanding (in shares) | 306,108,987 | 334,026,052 |
Effect of employee stock-based awards (in shares) | 216,000 | 320,000 |
Weighted average number of common shares outstanding - assuming dilution (in shares) | 306,325,155 | 334,346,122 |
Earnings per common share - assuming dilution (in dollars per share) | $ 2.42 | $ (0.01) |
Commitments and Contingencies -
Commitments and Contingencies - Liabilities for Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Total commitments and contingencies | $ 111,652 | $ 99,250 |
Consumer arrangements | ||
Loss Contingencies [Line Items] | ||
Contingencies | 17,186 | 22,155 |
Aggregate legal and regulatory liabilities | ||
Loss Contingencies [Line Items] | ||
Contingencies | 28,812 | 31,936 |
Revenue-sharing and gain/(loss), net-sharing payments | MPLFA | ||
Loss Contingencies [Line Items] | ||
Commitments | 65,446 | 43,778 |
Servicer performance fee | Bank of America | ||
Loss Contingencies [Line Items] | ||
Commitments | 182 | 1,200 |
Loss-sharing payments | CBP | ||
Loss Contingencies [Line Items] | ||
Commitments | $ 26 | $ 181 |
Commitments and Contingencies_2
Commitments and Contingencies - MPFLA (Details) - MPLFA - USD ($) | Mar. 31, 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 | $ 65,446,000 | $ 43,778,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Agreement with Bank of America (Details) - Bank of America - USD ($) | Jan. 31, 2017 | Mar. 31, 2021 | Dec. 31, 2020 |
Other Commitments [Line Items] | |||
Commitment to sell loans | $ 300,000,000 | ||
Servicer performance payments due, period | 6 years | ||
Servicer performance fee | |||
Other Commitments [Line Items] | |||
Commitments | $ 182,000 | $ 1,200,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Agreement with CBP (Details) - CBP - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Other Commitments [Line Items] | ||
Loans servicing, loss-sharing payment percentage | 0.50% | |
Loss-sharing payments | ||
Other Commitments [Line Items] | ||
Commitments | $ 26 | $ 181 |
Commitments and Contingencies_5
Commitments and Contingencies - Other Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Consumer arrangements | ||
Other Commitments [Line Items] | ||
Accrual for miscellaneous contingencies | $ 17,186 | $ 22,155 |
Commitments and Contingencies_6
Commitments and Contingencies - Legal and Regulatory Proceedings (Details) - Aggregate Legal and Regulatory Liabilities - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Contingencies | $ 28,812,000 | $ 31,936,000 |
Maximum possible loss | $ 0 |
Commitments and Contingencies_7
Commitments and Contingencies - Agreements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2015 | |
Other Commitments [Line Items] | |||||
Purchase obligation | $ 0 | $ 14,222,000 | |||
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 | 15,318,000 | 15,318,000 | |||
Bluestem | Purchase New Advances on Personal Revolving Finance Receivable | |||||
Other Commitments [Line Items] | |||||
Commitments | 0 | 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 | $ 20,943,000 |
Related-Party Transactions - Cr
Related-Party Transactions - Credit Facilities (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
SHUSA | |||
Related Party Transaction [Line Items] | |||
Interest expense for affiliate lines/letters of credit | $ 74,019,000 | $ 63,018,000 | |
Accrued interest for affiliate lines/letters of credit | 38,314,000 | $ 40,234,000 | |
Santander | |||
Related Party Transaction [Line Items] | |||
Interest expense for affiliate lines/letters of credit | 11,885,000 | $ 0 | |
Accrued interest for affiliate lines/letters of credit | $ 1,609,000 | $ 1,603,000 |
Related-Party Transactions - De
Related-Party Transactions - Derivatives (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Collateral overage on derivative liabilities | $ 16,500,000 | $ 4,740,000 |
Santander and Affiliates | ||
Related Party Transaction [Line Items] | ||
Outstanding notional amount | 2,984,250,000 | 3,148,850,000 |
Collateral overage on derivative liabilities | $ 0 | $ 907,000 |
Related-Party Transactions - Re
Related-Party Transactions - Retail Installment Contracts and RV Marine (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Servicing fee income | $ 18,694 | $ 19,103 |
SBNA | Serviced Auto Loan and Retail Installment | ||
Related Party Transaction [Line Items] | ||
Servicing fee income | $ 402 | $ 553 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Total serviced portfolio | $ 171,450 | $ 190,504 |
Cash collections due to owner | 24,281 | 19,650 |
Servicing fees receivable | $ 2,788 | $ 1,769 |
Related-Party Transactions - _2
Related-Party Transactions - Dealer Lending (Details) - SBNA - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Referral fee | $ 9,000,000 | ||
Referral fee, amortization period | 10 years | ||
Unamortized fee balance | $ 2,025,000 | $ 2,250,000 | |
Income related to referral fee | 225,000 | $ 225,000 | |
Dealer Loan Portfolio | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 0 | 0 | |
Loan Origination on Sales of Floorplan Inventory | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 9,073,000 | $ 7,548,000 |
Related-Party Transactions - _3
Related-Party Transactions - Schedule of Transactions with SBNA (Details) - SBNA - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Origination and Renewal Fees | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 0 | $ 1,509 |
Servicing Fees Expenses | ||
Related Party Transaction [Line Items] | ||
Expenses from transaction with related party | $ 90 | $ 74 |
Related-Party Transactions - Or
Related-Party Transactions - Origination Support Services (Details) - Affiliates - SBNA - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Purchase of Retail Installment Contracts | ||
Related Party Transaction [Line Items] | ||
Additions to servicing asset | $ 2,000,000 | $ 1,100,000 |
Referral and Servicing Fee | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | 11,566 | 10,488 |
Due from related parties | $ 4,120 | |
Due to related parties | $ 970 |
Related-Party Transactions - Se
Related-Party Transactions - Securitizations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Servicing fee income from affiliates | $ 9,197 | $ 12,552 | |
Santander | |||
Related Party Transaction [Line Items] | |||
Servicing fee income from affiliates | 2,889 | 5,973 | |
Due from related parties | 914 | $ 1,070 | |
Due to related parties | 6,147 | $ 6,203 | |
Affiliates | SIS | Fees Paid for Co-Management of Certain Securitizations | |||
Related Party Transaction [Line Items] | |||
Expenses from transaction with related party | $ 1,192 | $ 808 |
Related-Party Transactions - Em
Related-Party Transactions - Employee Compensation (Details) - SHUSA - Affiliates - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Compensation Expense Based on Time Allocation | ||
Related Party Transaction [Line Items] | ||
Due from related parties | $ 48 | |
Administrative Services | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 2,303 | $ 1,518 |
Due to related parties | $ 4,896 | $ 4,479 |
Related-Party Transactions - Ot
Related-Party Transactions - Other Related Party Transactions (Details) ft² in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)ft² | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||
Deposit and checking accounts balance | $ 356,911,000 | $ 32,490,000 | |
Affiliates | SBNA | |||
Related Party Transaction [Line Items] | |||
Deposit and checking accounts balance | $ 356,911,000 | $ 32,490,000 | |
Affiliates | SBNA | Sublease of Corporate Office Space | |||
Related Party Transaction [Line Items] | |||
Area of property (in square foot) | ft² | 13 | ||
Sublease income | $ 44,000 | $ 44,000 | |
Affiliates | SBNA | Fee for Payments Made at Retail Branch Locations | |||
Related Party Transaction [Line Items] | |||
Expenses from transaction with related party | 33,000 | 58,000 | |
Affiliates | Santander | Procurement Services | |||
Related Party Transaction [Line Items] | |||
Expenses from transaction with related party | 787,000 | 510,000 | |
Affiliates | Santander | Professional Services, Telecommunications, and Internal/External Application | |||
Related Party Transaction [Line Items] | |||
Expenses from transaction with related party | 0 | 179,000 | |
Affiliates | SHUSA | |||
Related Party Transaction [Line Items] | |||
Cyber liability insurance, coverage limit | 270,000,000 | ||
Affiliates | SHUSA | Allocated Portion of Insurance Premiums and Fees | |||
Related Party Transaction [Line Items] | |||
Expenses from transaction with related party | 188,000 | 108,000 | |
Affiliates | SHUSA | Various Other Insurance Products | |||
Related Party Transaction [Line Items] | |||
Expenses from transaction with related party | $ 513,000 | $ 183,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 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) | 363,459,117 | 363,159,613 | |||
Expiration period | 10 years | ||||
Compensation expense paid | $ 5,448,000 | $ 4,038,000 | |||
Granted (in shares) | 0 | ||||
Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares issued (in shares) | 5,192,641 | ||||
Compensation expense | $ 0 | $ 0 | |||
Omnibus Incentive Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Transfer and sale restrictions period | 1 year | ||||
Omnibus Incentive Plan | RSUs | Certain Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 3 years | ||||
Omnibus Incentive Plan | RSUs | Vesting One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 3 years | ||||
Omnibus Incentive Plan | RSUs | Vesting Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 5 years | ||||
Omnibus Incentive Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares stock awards available for grant (in shares) | 583,890 | ||||
MEP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares stock awards available for grant (in shares) | 29,000,000 | ||||
MEP | Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 5 years |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Stock Options and Related Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Shares | ||
Options outstanding as of beginning of period (in shares) | 169,369 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (47,359) | |
Expired (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Other (in shares) | 0 | |
Options outstanding as of end of period (in shares) | 122,010 | 169,369 |
Options exercisable as of end of period (in shares) | 122,010 | |
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) | 9.22 | |
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) | 14.49 | $ 13.01 |
Options exercisable, weighted average exercise price as of end of period (in dollars per share) | 14.49 | |
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) | 2 years 1 month 6 days | 1 year 10 months 24 days |
Options exercisable (in years) | 2 years 1 month 6 days | |
Options expected to vest (in years) | 0 years | |
Aggregate Intrinsic Value | ||
Options outstanding as of beginning period | $ 1,543 | |
Exercised | 775 | |
Options outstanding as of end of period | 1,534 | $ 1,543 |
Options exercisable | 1,534 | |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Shares | ||
Outstanding as of beginning of period (in shares) | 367,012 | |
Granted (in shares) | 324,295 | |
Vested (in shares) | (340,511) | |
Forfeited/canceled (in shares) | (7,362) | |
Outstanding as of end of period (in shares) | 343,434 | 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) | 25.38 | |
Vested (in dollars per share) | 22.27 | |
Forfeited/canceled (in dollars per share) | 14.32 | |
Outstanding as of end of period (in dollars per share) | $ 22.66 | $ 19.78 |
Weighted Average Remaining Contractual Term (Years) | ||
Option outstanding (in years) | 1 year 6 months | 9 months 18 days |
Aggregate Intrinsic Value | ||
Outstanding as of beginning of period | $ 8,082 | |
Vested | $ 8,638 | |
Unvested as of end of period | $ 9,293 |