Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39606 | |
Entity Registrant Name | SoFi Technologies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-1547291 | |
Entity Address, Address Line One | 234 1st Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 855 | |
Local Phone Number | 456-7634 | |
Title of 12(b) Security | Common stock, $0.0001 par value per share | |
Trading Symbol | SOFI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 940,895,594 | |
Entity Central Index Key | 0001818874 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and cash equivalents | $ 2,487,778 | $ 1,421,907 | |
Restricted cash and restricted cash equivalents | 489,736 | 424,395 | |
Investment securities (includes available-for-sale securities of $174,836 and $195,438 at fair value with associated amortized cost of $180,629 and $203,418, as of March 31, 2023 and December 31, 2022, respectively) | 360,068 | 396,769 | |
Loans held for sale, at fair value | 15,858,105 | 13,557,074 | |
Loans held for investment (less allowance for credit losses on loans at amortized cost of $38,937 and $40,788, as of March 31, 2023 and December 31, 2022, respectively) | 328,029 | 307,957 | |
Servicing rights | 146,514 | 149,854 | |
Property, equipment and software | 180,109 | 170,104 | |
Goodwill | 1,622,991 | 1,622,991 | |
Intangible assets | 419,880 | 442,155 | |
Operating lease right-of-use assets | 94,283 | 97,135 | |
Other assets (less allowance for credit losses of $1,645 and $2,785, as of March 31, 2023 and December 31, 2022, respectively) | 465,468 | 417,334 | |
Total assets | 22,452,961 | 19,007,675 | |
Deposits: | |||
Interest-bearing deposits | 10,016,404 | 7,265,792 | |
Noninterest-bearing deposits | 72,037 | 76,504 | |
Total deposits | 10,088,441 | 7,342,296 | |
Accounts payable, accruals and other liabilities | 554,106 | 516,215 | |
Operating lease liabilities | 114,902 | 117,758 | |
Debt | 6,125,501 | 5,485,882 | |
Residual interests classified as debt | 15,565 | 17,048 | |
Total liabilities | 16,898,515 | 13,479,199 | |
Commitments, guarantees, concentrations and contingencies (Note 15) | |||
Temporary equity: | |||
Redeemable preferred stock, $0.00 par value: 100,000,000 and 100,000,000 shares authorized; 3,234,000 and 3,234,000 shares issued and outstanding, as of March 31, 2023 and December 31, 2022, respectively | [1] | 320,374 | 320,374 |
Permanent equity: | |||
Common stock | [2] | 94 | 93 |
Additional paid-in capital | 6,778,262 | 6,719,826 | |
Accumulated other comprehensive loss | (6,341) | (8,296) | |
Accumulated deficit | (1,537,943) | (1,503,521) | |
Total permanent equity | 5,234,072 | 5,208,102 | |
Total liabilities, temporary equity and permanent equity | 22,452,961 | 19,007,675 | |
Restricted cash and restricted cash equivalents | 489,736 | 424,395 | |
Loans held for sale, at fair value | 15,858,105 | 13,557,074 | |
Total assets | 22,452,961 | 19,007,675 | |
Accounts payable, accruals and other liabilities | 554,106 | 516,215 | |
Debt | 6,125,501 | 5,485,882 | |
Residual interests classified as debt | 15,565 | 17,048 | |
Total liabilities | 16,898,515 | 13,479,199 | |
Variable Interest Entity, Primary Beneficiary | |||
Assets | |||
Restricted cash and restricted cash equivalents | 138,952 | 68,151 | |
Loans held for sale, at fair value | 1,164,464 | 931,701 | |
Total assets | 1,303,416 | 999,852 | |
Deposits: | |||
Accounts payable, accruals and other liabilities | 3,082 | 3,053 | |
Debt | 964,932 | 771,454 | |
Residual interests classified as debt | 15,565 | 17,048 | |
Total liabilities | 983,579 | 791,555 | |
Restricted cash and restricted cash equivalents | 138,952 | 68,151 | |
Loans held for sale, at fair value | 1,164,464 | 931,701 | |
Total assets | 1,303,416 | 999,852 | |
Accounts payable, accruals and other liabilities | 3,082 | 3,053 | |
Debt | 964,932 | 771,454 | |
Residual interests classified as debt | 15,565 | 17,048 | |
Total liabilities | $ 983,579 | $ 791,555 | |
[1]Redemption amount is $323,400 as of March 31, 2023 and December 31, 2022.[2] Includes 100,000,000 non-voting common shares authorized and no non-voting common shares issued and outstanding as of March 31, 2023 and December 31, 2022. See Note 10. Equity for additional information. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments in available-for-sale securities, fair value | $ 174,836 | $ 195,438 |
Investments in available-for-sale securities, amortized cost | 180,629 | 203,418 |
Loans held for investment, allowance for credit loss | 38,937 | 40,788 |
Other assets, allowance for credit loss | $ 1,645 | $ 2,785 |
Redeemable preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Redeemable preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Redeemable preferred stock, shares issued (in shares) | 3,234,000 | 3,234,000 |
Redeemable preferred stock, shares outstanding (in shares) | 3,234,000 | 3,234,000 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 3,100,000,000 | 3,100,000,000 |
Common stock, shares issued (in shares) | 940,338,835 | 933,896,120 |
Common stock, shares outstanding (in shares) | 940,338,835 | 933,896,120 |
Redemption amount | $ 323,400 | $ 323,400 |
Non-Voting Common Stock | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income | ||
Loans | $ 357,342 | $ 114,385 |
Securitizations | 3,054 | 2,758 |
Other | 11,168 | 1,269 |
Total interest income | 371,564 | 118,412 |
Interest expense | ||
Securitizations and warehouses | 54,324 | 19,906 |
Deposits | 73,116 | 431 |
Corporate borrowings | 8,000 | 2,649 |
Other | 114 | 493 |
Total interest expense | 135,554 | 23,479 |
Net interest income | 236,010 | 94,933 |
Noninterest income | ||
Loan origination and sales | 126,511 | 157,704 |
Securitizations | (3,177) | (11,281) |
Servicing | 12,742 | 12,236 |
Technology products and solutions | 72,801 | 59,857 |
Other | 27,271 | 16,895 |
Total noninterest income | 236,148 | 235,411 |
Total net revenue (loss) | 472,158 | 330,344 |
Noninterest expense | ||
Technology and product development | 117,059 | 81,908 |
Sales and marketing | 175,154 | 138,138 |
Cost of operations | 83,908 | 70,437 |
General and administrative | 123,689 | 136,505 |
Provision for credit losses | 8,407 | 12,961 |
Total noninterest expense | 508,217 | 439,949 |
Loss before income taxes | (36,059) | (109,605) |
Income tax benefit (expense) | 1,637 | (752) |
Net loss | (34,422) | (110,357) |
Other comprehensive income (loss) | ||
Unrealized gains (losses) on available-for-sale securities, net | 2,248 | (4,455) |
Foreign currency translation adjustments, net | (293) | (38) |
Total other comprehensive income (loss) | 1,955 | (4,493) |
Comprehensive loss | $ (32,467) | $ (114,850) |
Loss per share (Note 16) | ||
Loss per share - basic (in dollars per share) | $ (0.05) | $ (0.14) |
Loss per share - diluted (in dollars per share) | $ (0.05) | $ (0.14) |
Weighted average common stock outstanding - basic (in shares) | 929,270,723 | 852,853,596 |
Weighted average common stock outstanding - diluted (in shares) | 929,270,723 | 852,853,596 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Temporary Equity and Permanent Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | |
Beginning balance (in shares) at Dec. 31, 2021 | 828,154,462 | |||||
Beginning balance at Dec. 31, 2021 | $ 4,377,329 | $ 83 | $ 5,561,831 | $ (1,471) | $ (1,183,114) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 81,617 | 81,617 | ||||
Vesting of RSUs (in shares) | 4,951,204 | |||||
Stock withheld related to taxes on vested RSUs (in shares) | (343,698) | |||||
Stock withheld related to taxes on vested RSUs | (3,593) | (3,593) | ||||
Exercise of common stock options (in shares) | 1,055,775 | |||||
Exercise of common stock options | 1,867 | 1,867 | ||||
Issuance of common stock in acquisition (in shares) | 81,856,112 | |||||
Issuance of common stock in acquisition | 875,042 | $ 8 | 875,034 | |||
Vested awards assumed in acquisition | 2,855 | 2,855 | ||||
Redeemable preferred stock dividends | (9,968) | (9,968) | ||||
Net loss | (110,357) | (110,357) | ||||
Other comprehensive loss, net of taxes | (4,493) | (4,493) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 915,673,855 | |||||
Ending balance at Mar. 31, 2022 | $ 5,210,299 | $ 91 | 6,509,643 | (5,964) | (1,293,471) | |
Temporary equity, beginning balance (in shares) at Dec. 31, 2021 | 3,234,000 | |||||
Temporary equity, beginning balance at Dec. 31, 2021 | $ 320,374 | |||||
Temporary equity, ending balance (in shares) at Mar. 31, 2022 | 3,234,000 | |||||
Temporary equity, ending balance at Mar. 31, 2022 | $ 320,374 | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 933,896,120 | 933,896,120 | ||||
Beginning balance at Dec. 31, 2022 | $ 5,208,102 | $ 93 | 6,719,826 | (8,296) | (1,503,521) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 70,653 | 70,653 | ||||
Vesting of RSUs (in shares) | 6,737,174 | |||||
Vesting of RSUs | 0 | $ 1 | (1) | |||
Stock withheld related to taxes on vested RSUs (in shares) | (455,690) | |||||
Stock withheld related to taxes on vested RSUs | $ (2,416) | (2,416) | ||||
Exercise of common stock options (in shares) | 161,231 | 161,231 | ||||
Exercise of common stock options | $ 168 | 168 | ||||
Redeemable preferred stock dividends | (9,968) | (9,968) | ||||
Net loss | (34,422) | (34,422) | ||||
Other comprehensive loss, net of taxes | $ 1,955 | 1,955 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 940,338,835 | 940,338,835 | ||||
Ending balance at Mar. 31, 2023 | $ 5,234,072 | $ 94 | $ 6,778,262 | $ (6,341) | $ (1,537,943) | |
Temporary equity, beginning balance (in shares) at Dec. 31, 2022 | 3,234,000 | |||||
Temporary equity, beginning balance at Dec. 31, 2022 | [1] | $ 320,374 | ||||
Temporary equity, ending balance (in shares) at Mar. 31, 2023 | 3,234,000 | |||||
Temporary equity, ending balance at Mar. 31, 2023 | [1] | $ 320,374 | ||||
[1]Redemption amount is $323,400 as of March 31, 2023 and December 31, 2022. |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net loss | $ (34,422) | $ (110,357) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Share-based compensation expense | 64,226 | 77,021 |
Depreciation and amortization | 45,321 | 30,698 |
Deferred debt issuance and discount expense | 4,852 | 4,209 |
Provision for credit losses | 8,407 | 12,961 |
Deferred income taxes | 68 | (40) |
Fair value changes in residual interests classified as debt | 89 | 2,963 |
Fair value changes in securitization investments | 100 | 6,545 |
Other | (2,317) | 3,219 |
Changes in operating assets and liabilities: | ||
Changes in loans held for sale, net | (2,301,031) | (1,049,913) |
Servicing assets | 3,340 | (5,246) |
Other assets | 15,823 | (13,623) |
Accounts payable, accruals and other liabilities | (17,216) | 30,339 |
Net cash used in operating activities | (2,212,760) | (1,011,224) |
Investing activities | ||
Purchases of property, equipment, software and intangible assets | (23,720) | (25,114) |
Capitalized software development costs | (2,814) | 0 |
Purchases of available-for-sale investments | (260,608) | (36,825) |
Proceeds from sales of available-for-sale investments | 265,634 | 17,651 |
Proceeds from maturities and paydowns of available-for-sale investments | 20,409 | 11,964 |
Changes in loans held for investment, net | (29,544) | (33,884) |
Proceeds from securitization investments | 15,999 | 42,773 |
Purchases of non-securitization investments | (7,563) | 0 |
Acquisition of businesses, net of cash acquired | (17,946) | |
Acquisition of businesses, net of cash acquired | 73,314 | |
Net cash (used in) provided by investing activities | (40,153) | 49,879 |
Financing activities | ||
Net change in deposits | 2,754,540 | 961,834 |
Net change in debt facilities | 444,106 | 1,049,618 |
Proceeds from other debt issuances | 339,995 | 0 |
Repayment of other debt | (147,985) | (112,283) |
Payment of debt issuance costs | (3,865) | (2,165) |
Taxes paid related to net share settlement of share-based awards | (2,416) | (3,593) |
Proceeds from stock option exercises | 168 | 1,867 |
Finance lease principal payments | (125) | (120) |
Net cash provided by financing activities | 3,384,418 | 1,895,158 |
Effect of exchange rates on cash and cash equivalents | (293) | (38) |
Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 1,131,212 | 933,775 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,846,302 | 768,437 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 2,977,514 | 1,702,212 |
Reconciliation to amounts on condensed consolidated balance sheets (as of period end) | ||
Cash and cash equivalents | 2,487,778 | 1,325,135 |
Restricted cash and restricted cash equivalents | 489,736 | 377,077 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 2,977,514 | 1,702,212 |
Supplemental non-cash investing and financing activities | ||
Deposits credited but not yet received in cash | 39,701 | 36,072 |
Share-based compensation capitalized related to internally-developed software | 6,427 | 4,596 |
Non-cash loan reduction | 483 | 375 |
Deferred debt issuance costs accrued but unpaid | 413 | 0 |
Non-cash property, equipment, software and intangible asset additions | 82 | 0 |
Deposits assumed in acquisition | 0 | 158,016 |
Loans held for investment received in acquisition | 0 | 84,485 |
Available-for-sale securities received in acquisition | 0 | 10,014 |
Property, equipment and software acquired in acquisition | 0 | 3,192 |
Debt assumed in acquisition | $ 0 | $ 2,000 |
Organization, Summary of Signif
Organization, Summary of Significant Accounting Policies and New Accounting Standards | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Summary of Significant Accounting Policies and New Accounting Standards | Organization, Summary of Significant Accounting Policies and New Accounting Standards Organization SoFi is a financial services platform that was founded in 2011 to offer an innovative approach to the private student loan market by providing student loan refinancing options. The Company conducts its business through three reportable segments: Lending, Technology Platform and Financial Services. Since its founding, SoFi has expanded its lending and financial services strategy to offer personal loans, home loans and credit cards. The Company also developed additional financial products, such as money management and investment product offerings, and has also leveraged its financial services platform to empower other businesses. The Company has continued to expand its product offerings through strategic acquisitions. During 2020, the Company expanded its investment product offerings into Hong Kong through the acquisition of 8 Limited, and also began to operate as a platform-as-a-service for a variety of financial service providers, providing the infrastructure to facilitate core client-facing and back-end capabilities, such as account setup, account funding, direct deposit, authorizations and processing, payments functionality and check account balance features through the acquisition of Galileo. During 2022, the Company became a bank holding company and began operating SoFi Bank, National Association, through the Bank Merger, and expanded its platform to include a cloud-native digital and core banking platform with customers in Latin America through the Technisys Merger, allowing the Company to expand its technology platform services to a broader international market. For additional information on our recent business combinations, see Note 2. Business Combinations . For additional information on our reportable segments, see Note 17. Business Segment Information . Summary of Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and certain consolidated VIEs. All intercompany accounts were eliminated in consolidation. The condensed consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the SEC. We condensed or omitted certain notes and other financial information from the interim financial statements presented herein. These condensed consolidated financial statements should be read in conjunction with the consolidated statements included in our annual filing on Form 10-K filed with the SEC on March 1, 2023 (“Form 10-K”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the Company’s financial condition and results of operations and cash flows for the interim periods presented. The results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year ending December 31, 2023. Use of Judgments, Assumptions and Estimates The preparation of our condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the reported amounts of assets, liabilities, revenue, expenses, and the disclosures of contingent assets and liabilities. These estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions, and the differences could be material. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances. These assumptions and estimates include, but are not limited to, the following: (i) fair value measurements; (ii) business combinations; and (iii) goodwill. Restructuring During the three months ended March 31, 2023, we recognized restructuring charges of $4,953 within noninterest expense in the condensed consolidated statements of operations and comprehensive income (loss) associated with a small reduction in headcount in the Technology Platform segment, which primarily included employee-related wages, benefits and severance. Recently Adopted Accounting Standards Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The ASU addresses two topics: (i) troubled debt restructuring (“TDR”) by creditors, and (ii) vintage disclosures for gross write offs. Under the TDR provisions, the ASU eliminates the recognition and measurement guidance under ASC 310-40, Receivables — Troubled Debt Restructurings by Creditors, and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan, consistent with the accounting for other loan modifications. Additionally, the ASU enhances existing disclosure requirements around TDRs and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Under the vintage disclosure provisions, the ASU requires the entity to disclose current period gross write offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20, Financial Instruments — Credit Losses — Measured at Amortized Cost . The standard should be applied prospectively; however, for the TDR provisions, an entity has the option to apply a modified retrospective transition method. We adopted the standard effective January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Acquisition of Technisys S.A. In the Technisys Merger, we acquired all of the outstanding equity interests in Technisys for total purchase consideration of $913,764. The Technisys Merger was accounted for as a business combination. Technisys is a cloud-native digital and core banking platform with an existing footprint of financial services customers in Latin America. With the acquisition of Technisys, we expanded our technology platform services to a broader international market. During the three months ended March 31, 2023, we made payments of $17,946 related to settlements of vested employee performance awards, which was a component of the purchase consideration. There are 6,305,595 shares issued in the acquisition that remain held in escrow. The escrow shares are expected to be released no later than 15 months after the close of the acquisition, other than any escrow shares which remain subject to the indemnification provisions of the Technisys Merger agreement. From the date of acquisition through March 31, 2022, the acquired results of operations for Technisys contributed total net revenue of $6.2 million and net loss of $1.8 million to the Company’s consolidated results, which was inclusive of amortization expense recognized on the acquired intangible assets. The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations as if the business combination had occurred on January 1, 2021: Three Months Ended March 31, 2022 Total net revenue $ 342,109 Net loss (103,983) The unaudited supplemental pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the actual results of operations that would have been achieved, nor is it indicative of future results of operations. The unaudited supplemental pro forma financial information reflects pro forma adjustments that give effect to applying the Company’s accounting policies and certain events the Company believes to be directly attributable to the acquisition. The pro forma adjustments primarily include: • incremental straight-line amortization expense associated with acquired intangible assets; • an adjustment to reflect post-combination share-based compensation expense associated with the Replacement Awards as if the conversion had occurred on January 1, 2021; • an adjustment to reflect acquisition-related costs for both parties as if they were incurred during the earliest period presented; and • the related income tax effects, at the statutory tax rate applicable for each period, of the pro forma adjustments noted above. The unaudited supplemental pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Technisys. Acquisition of Golden Pacific Bancorp, Inc. In the Bank Merger, we acquired all of the outstanding equity interests in Golden Pacific for total cash purchase consideration of $22.3 million. The Company is duly registered as a bank holding company with the Board of Governors of the Federal Reserve (the “Federal Reserve”). SoFi Bank is a national banking association whose primary federal regulator is the Office of the Comptroller of the Currency (the “OCC”). Deposit accounts of SoFi Bank are insured by the Federal Deposit Insurance Corporation (the “FDIC”) through the Deposit Insurance Fund to the fullest extent permitted by law. As of March 31, 2023, a portion of the total cash purchase consideration ($3.3 million) remained held back, representing an amount payable to a dissenting Golden Pacific shareholder pending resolution of the shareholder’s dissenter’s rights appraisal claim, which could possibly result in a lower or higher amount paid to the dissenting shareholder once a ruling is made regarding the appraisal claim. Goodwill and Intangible Assets Goodwill as of both March 31, 2023 and December 31, 2022 was $1,622,991. Goodwill attributable to the Technology Platform and Financial Services reportable segments was $1,585,832 and $37,159, respectively. As of March 31, 2023, we did not identify any indicators of goodwill impairment nor any indicators that the carrying amounts of our intangible assets may not be recoverable. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue In each of our revenue arrangements, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects our expected consideration in exchange for those goods or services. Our arrangements are discussed in our Annual Report on Form 10-K, with notable updates provided herein. Disaggregated Revenue The table below presents revenue from contracts with customers disaggregated by type of service, which best depicts how the revenue and cash flows are affected by economic factors, and by the reportable segment to which each revenue stream relates, as well as a reconciliation of total revenue from contracts with customers to total noninterest income . Revenue from contracts with customers is presented within noninterest income—technology products and solutions and noninterest income—other in the condensed consolidated statements of operations and comprehensive income (loss). There were no revenues from contracts with customers attributable to our Lending segment for the periods presented. Three Months Ended March 31, 2023 2022 Financial Services Referrals $ 9,626 $ 7,768 Interchange 7,269 4,286 Brokerage 4,878 4,730 Other (1) 487 203 Total financial services 22,260 16,987 Technology Platform (2) Technology services 72,129 59,157 Software licenses 672 700 Other (1) 421 178 Total technology platform 73,222 60,035 Total revenue from contracts with customers $ 95,482 $ 77,022 Other Sources of Revenue Loan origination and sales $ 126,511 $ 157,704 Securitizations (3,177) (11,281) Servicing 12,742 12,236 Other 4,590 (270) Total other sources of revenue $ 140,666 $ 158,389 Total noninterest income $ 236,148 $ 235,411 _____________________ (1) In Financial Services, includes revenues from equity capital markets services and enterprise services. In Technology Platform, includes payment network fees for serving as a transaction card program manager for enterprise customers that are the program marketers for separate card programs. (2) Related to these technology products and solutions arrangements, we had deferred revenues of $8,526 and $10,028 as of March 31, 2023 and December 31, 2022, respectively, which are presented within accounts payable, accruals and other liabilities in the condensed consolidated balance sheets. During the three months ended March 31, 2023 and 2022, we recognized revenue of $2,340 and $785, respectively, associated with deferred revenues within noninterest income—technology products and solutions in the condensed consolidated statements of operations and comprehensive income (loss). Contract Balances As of March 31, 2023 and December 31, 2022, accounts receivable, net associated with revenue from contracts with customers was $58,772 and $61,226, respectively, which were reported within other assets in the condensed consolidated balance sheets. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans | Loans As of March 31, 2023, our loan portfolio consisted of loans held for sale, including personal loans, student loans and home loans, which are measured at fair value under the fair value option, and loans held for investment, including credit cards, and commercial and consumer banking loans, which are measured at amortized cost. Below is a disaggregated presentation of our loans, inclusive of fair market value adjustments and accrued interest income and net of the allowance for credit losses, as applicable: March 31, December 31, Loans held for sale Personal loans (1) $ 10,536,999 $ 8,610,434 Student loans (2) 5,240,059 4,877,177 Home loans 81,047 69,463 Total loans held for sale, at fair value 15,858,105 13,557,074 Loans held for investment (3) Credit card (4) 216,914 209,164 Commercial and consumer banking: Commercial real estate 101,453 88,652 Commercial and industrial 6,659 7,179 Residential real estate and other consumer 3,003 2,962 Total commercial and consumer banking 111,115 98,793 Total loans held for investment, at amortized cost 328,029 307,957 Total loans $ 16,186,134 $ 13,865,031 _____________________ (1) Includes $962,476 and $663,004 of personal loans in consolidated VIEs as of March 31, 2023 and December 31, 2022, respectively. (2) Includes $201,988 and $268,697 of student loans in consolidated VIEs as of March 31, 2023 and December 31, 2022, respectively. (3) See Note 5. Allowance for Credit Losses for additional information on our loans at amortized cost as it pertains to the allowance for credit losses. (4) For credit cards, loan origination costs are expensed as incurred primarily within noninterest expense—sales and marketing in the condensed consolidated statements of operations and comprehensive income (loss) . Loans Held for Sale The following table summarizes the aggregate fair value of our loans held for sale, for which we elected the fair value option and are, therefore, measured at fair value on a recurring basis. See Note 12. Fair Value Measurements for the assumptions used in our fair value model. Personal Loans Student Loans Home Loans Total March 31, 2023 Unpaid principal $ 10,039,769 $ 5,086,953 $ 89,782 $ 15,216,504 Accumulated interest 69,049 20,787 162 89,998 Cumulative fair value adjustments (1) 428,181 132,319 (8,897) 551,603 Total fair value of loans (2) $ 10,536,999 $ 5,240,059 $ 81,047 $ 15,858,105 December 31, 2022 Unpaid principal $ 8,283,400 $ 4,794,517 $ 77,705 $ 13,155,622 Accumulated interest 55,673 19,433 151 75,257 Cumulative fair value adjustments (1) 271,361 63,227 (8,393) 326,195 Total fair value of loans (2) $ 8,610,434 $ 4,877,177 $ 69,463 $ 13,557,074 __________________ (1) The increase in cumulative fair value adjustments for personal loans during the three months ended March 31, 2023 was primarily attributable to higher origination volume and higher coupon rates, while the increase for student loans was primarily attributable to lower prepayment assumptions and higher coupon rates. (2) Each component of the fair value of loans is impacted by charge-offs during the period. Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due. The following table summarizes the aggregate fair value of loans 90 days or more delinquent. As delinquent personal loans and student loans are charged off after 120 days of delinquency, amounts presented below represent the fair value of loans that are 90 to 120 days delinquent. There were no home loans that were 90 days or more delinquent as of the dates presented. Personal Loans Student Loans Total March 31, 2023 Unpaid principal balance $ 37,754 $ 5,968 $ 43,722 Accumulated interest 1,731 306 2,037 Cumulative fair value adjustments (1) (34,219) (3,283) (37,502) Fair value of loans 90 days or more delinquent $ 5,266 $ 2,991 $ 8,257 December 31, 2022 Unpaid principal balance $ 27,989 $ 6,435 $ 34,424 Accumulated interest 1,207 304 1,511 Cumulative fair value adjustments (1) (25,022) (3,332) (28,354) Fair value of loans 90 days or more delinquent $ 4,174 $ 3,407 $ 7,581 __________________ (1) Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due. Transfers of Financial Assets We regularly transfer financial assets and account for such transfers as either sales or secured borrowings depending on the facts and circumstances of the transfer. When a transfer of financial assets qualifies as a sale, in many instances we have continued involvement as the servicer of those financial assets. As we expect the benefits of servicing to be more than just adequate, we recognize a servicing asset. Further, in the case of securitization-related transfers that qualify as sales, we have additional continued involvement as an investor, albeit at insignificant levels relative to the expected gains and losses of the securitization. In instances where a transfer is accounted for as a secured borrowing, we perform servicing (but we do not recognize a servicing asset) and typically maintain a significant investment relative to the expected gains and losses of the securitization. In whole loan sales, we do not have a residual financial interest in the loans, nor do we have any other power over the loans that would constrain us from recognizing a sale. Additionally, we have no repurchase requirements related to transfers of personal loans, student loans and non-Government-Sponsored Enterprise (“GSE”) home loans other than standard origination representations and warranties, for which we record a liability based on expected repurchase obligations. For GSE home loans, we have customary GSE repurchase requirements, which do not constrain sale treatment but result in a liability for the expected repurchase requirement. There were no loan securitization transfers qualifying for sale accounting treatment during the three months ended March 31, 2023 and 2022. Deconsolidation of debt reflects the impacts of previously consolidated VIEs that became deconsolidated during the period because we no longer hold a significant financial interest in the underlying securitization entity, which can fluctuate from period to period. Gains and losses on deconsolidations are presented within noninterest income—securitizations in the condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2023, we did not have any deconsolidations of debt. The following table summarizes our whole loan sales: Three Months Ended March 31, 2023 2022 Personal loans Fair value of consideration received: Cash $ — $ 1,018,689 Servicing assets recognized — 6,424 Repurchase liabilities recognized — (2,298) Total consideration received — 1,022,815 Aggregate unpaid principal balance and accrued interest of loans sold — 981,855 Gain from loan sales $ — $ 40,960 Student loans Fair value of consideration received: Cash $ — $ 548,911 Servicing assets recognized — 5,824 Repurchase liabilities recognized — (80) Total consideration — 554,655 Aggregate unpaid principal balance and accrued interest of loans sold — 546,287 Gain from loan sales $ — $ 8,368 Home loans Fair value of consideration received: Cash $ 77,819 $ 359,700 Servicing assets recognized 954 4,238 Repurchase liabilities recognized (96) (420) Total consideration 78,677 363,518 Aggregate unpaid principal balance and accrued interest of loans sold 77,976 365,560 Gain (loss) from loan sales $ 701 $ (2,042) The following table presents information about the unpaid principal balances of transferred loans that are not recorded in our condensed consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements: Personal Loans Student Loans Home Loans Total March 31, 2023 Loans in delinquency $ 130,475 $ 105,250 $ 15,677 $ 251,402 Total loans serviced (1) 2,884,653 7,173,819 5,118,433 15,176,905 December 31, 2022 Loans in delinquency $ 136,179 $ 115,818 $ 16,510 $ 268,507 Total loans serviced (1) 3,402,795 7,586,031 5,134,306 16,123,132 _____________________ (1) Total loans serviced includes loans in delinquency, as well as loans in repayment, loans in-school/grace period/deferment (related to student loans), and loans in forbearance. The vast majority of total loans serviced represent loans in repayment as of the dates indicated. The following table presents additional information about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement: Three Months Ended March 31, 2023 2022 Personal loans Servicing fees collected $ 7,193 $ 8,637 Charge-offs, net of recoveries (1) 57,442 17,138 Student loans Servicing fees collected 9,190 9,168 Charge-offs, net of recoveries (1) 9,153 8,220 Home loans Servicing fees collected 3,160 2,636 Charge-offs, net of recoveries — — Total Servicing fees collected $ 19,543 $ 20,441 Charge-offs, net of recoveries (1) 66,595 25,358 _____________________ (1) Personal loan and student loan charge-offs, net of recoveries, are impacted by the timing of charge-off sales performed on behalf of the purchasers of our loans, which lower the net amount disclosed. Loans Held for Investment Loan Portfolio Composition and Aging The following table presents the amortized cost basis of our credit card and commercial and consumer banking portfolios (excluding accrued interest and before the allowance for credit losses) by either current status or delinquency status: Delinquent Loans Current 30–59 Days 60–89 Days ≥ 90 Days (1) Total Delinquent Loans Total Loans (2) March 31, 2023 Credit card $ 231,057 $ 4,267 $ 3,332 $ 10,833 $ 18,432 $ 249,489 Commercial and consumer banking: Commercial real estate 102,390 — — — — 102,390 Commercial and industrial 6,868 4 337 — 341 7,209 Residential real estate and other consumer (3) 3,001 — — — — 3,001 Total commercial and consumer banking 112,259 4 337 — 341 112,600 Total loans $ 343,316 $ 4,271 $ 3,669 $ 10,833 $ 18,773 $ 362,089 December 31, 2022 Credit card $ 225,165 $ 4,670 $ 3,626 $ 10,498 $ 18,794 $ 243,959 Commercial and consumer banking: Commercial real estate 89,544 — — — — 89,544 Commercial and industrial 7,636 — 1 — 1 7,637 Residential real estate and other consumer (3) 2,966 — — — — 2,966 Total commercial and consumer banking 100,146 — 1 — 1 100,147 Total loans $ 325,311 $ 4,670 $ 3,627 $ 10,498 $ 18,795 $ 344,106 _______________ (1) All of the credit cards ≥ 90 days past due continued to accrue interest. As of the dates indicated, there were no credit cards on nonaccrual status. As of the dates indicated, commercial and consumer banking loans on nonaccrual status were immaterial, and there were no loans that were 90 days or more past due. (2) For credit card, the balance is presented before allowance for credit losses of $37,089 and $39,110 as of March 31, 2023 and December 31, 2022, respectively, and accrued interest of $4,514 and $4,315, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,848 and $1,678, respectively, and accrued interest of $363 and $324, respectively. (3) Primarily includes residential real estate loans acquired in the Bank Merger, for which we did not elect the fair value option. Credit Quality Indicators Credit Card The following table presents the amortized cost basis of our credit card portfolio (excluding accrued interest and before the allowance for credit losses) based on FICO scores, which are obtained at origination of the account and are refreshed monthly thereafter. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data. FICO March 31, 2023 December 31, 2022 ≥ 800 $ 16,835 $ 14,421 780 – 799 11,895 11,327 760 – 779 13,394 12,179 740 – 759 15,373 14,501 720 – 739 19,966 19,343 700 – 719 26,790 26,239 680 – 699 31,887 31,543 660 – 679 31,779 31,958 640 – 659 24,765 25,959 620 – 639 15,036 15,566 600 – 619 9,215 8,968 ≤ 599 32,554 31,955 Total credit card $ 249,489 $ 243,959 Commercial and Consumer Banking We analyze loans in our commercial and consumer banking portfolio by classification based on their associated credit risk, and perform an analysis on an ongoing basis as new information is obtained. Risk rating classifications are further described below. Loans with a lower expectation of credit losses are classified as Pass, while loans with a higher expectation of credit losses are classified as Substandard. • Pass — Loans that management believes will fully repay in accordance with the contractual loan terms. • Watch — Loans that management believes will fully repay in accordance with the contractual loan terms, but for which certain credit attributes have changed from origination and warrant further monitoring. • Special mention — Loans with a potential weakness or weaknesses that deserves management’s close attention. If left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the loan or our credit position at some future date. • Substandard — Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the full repayment. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. The following table presents the amortized cost basis of our commercial and consumer banking portfolio (excluding accrued interest and before the allowance for credit losses) by origination year and credit quality indicator: Term Loans by Origination Year March 31, 2023 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Commercial real estate Pass $ 13,011 $ 34,387 $ 5,725 $ 6,278 $ 10,178 $ 19,081 $ 88,660 $ 196 Watch 1,247 4,643 1,676 — 223 2,808 10,597 — Special mention — — — — 673 1,596 2,269 — Substandard — — — — — 668 668 — Total commercial real estate 14,258 39,030 7,401 6,278 11,074 24,153 102,194 196 Commercial and industrial Pass 30 — — 75 — 5,430 5,535 215 Watch — — — — 127 33 160 24 Substandard — — — — — 1,275 1,275 — Total commercial and industrial 30 — — 75 127 6,738 6,970 239 Residential real estate and other consumer Pass — — — — — 2,894 2,894 65 Watch — — — — — 41 41 1 Total residential real estate and other consumer — — — — — 2,935 2,935 66 Total commercial and consumer banking $ 14,288 $ 39,030 $ 7,401 $ 6,353 $ 11,201 $ 33,826 $ 112,099 $ 501 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses Our allowance for credit losses represents our current estimate of expected credit losses over the remaining contractual life of certain financial assets, including credit cards as well as commercial and consumer banking loans acquired in the Bank Merger, which relate to our Financial Services segment, and accounts receivables primarily related to our Technology Platform segment. Given our methods of collecting funds on servicing receivables, our historical experience of infrequent write offs, and that we have not observed meaningful changes in our counterparties’ abilities to pay, we determined that the future exposure to credit losses on servicing related receivables was immaterial. In estimating expected credit losses for credit cards, we segment loans based on credit quality indicators and reassess our pools periodically to confirm that all loans within each pool continue to share similar risk characteristics. We establish an allowance within each pool utilizing a proprietary risk model that relies on assumptions such as average annual percentage rate, payment rate, utilization, delinquency status and default probability. The model may then be adjusted for current conditions and reasonable and supportable forecasts of future conditions, including economic conditions. We apply the aforementioned assumptions to the drawn balance of credit cards within each pool to estimate the lifetime expected credit losses within each pool, which are then aggregated to determine the allowance for credit losses. We further consider an evaluation of overall portfolio credit quality based on indicators such as changes in our credit decisioning process, underwriting and collection management policies; the effects of external factors, such as regulatory requirements; general economic conditions; and inherent uncertainties in applying the methodology. When a credit card balance is charged off, we record a reduction to the allowance and the credit card balance. The following table presents changes in our allowance for credit losses: Credit Card (1) Commercial and Consumer Banking (1) Accounts Receivable (1) Three Months Ended March 31, 2023 Balance at December 31, 2022 $ 39,110 $ 1,678 $ 2,785 Provision for credit losses (2) 8,237 170 (854) Write-offs charged against the allowance (3) (10,258) — (286) Balance at March 31, 2023 $ 37,089 $ 1,848 $ 1,645 Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 7,037 $ — $ 2,292 Provision for credit losses (2) 11,977 984 (591) Allowance for PCD loans (4) — 382 — Write-offs charged against the allowance (2,514) — (49) Balance at March 31, 2022 $ 16,500 $ 1,366 $ 1,652 _____________________ (1) Credit cards and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans held for investment in the condensed consolidated balance sheets. Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the condensed consolidated balance sheets. (2) The provision for credit losses on credit cards and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses in the condensed consolidated statements of operations and comprehensive income (loss) . There were immaterial recoveries of amounts previously reserved related to credit cards and commercial and consumer banking loans during the three months ended March 31, 2023 and 2022. The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2023 and 2022, recoveries of amounts previously reserved related to accounts receivable were $1,161 and $1,392, respectively. (3) The increase in credit card write-offs charged against the allowance during the three months ended March 31, 2023 relative to the corresponding period in 2022 was primarily related to our maturing portfolio. (4) In connection with the Bank Merger, we obtained purchased credit deteriorated (“PCD”) loans, for which we measured an allowance, with a corresponding increase to the amortized cost basis as of the acquisition date. Therefore, recognition of the initial allowance for credit losses did not impact earnings. |
Investments Securities
Investments Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments Securities | Investment Securities Investments in AFS Debt Securities The following table presents our investments in available-for-sale (“AFS”) debt securities: Amortized Cost Accrued Interest Gross Unrealized Gains Gross Unrealized Losses (1) Fair Value March 31, 2023 U.S. Treasury securities $ 101,944 $ 248 $ — $ (2,273) $ 99,919 Multinational securities (2) 19,596 75 — (504) 19,167 Corporate bonds 38,771 211 — (2,112) 36,870 Agency mortgage-backed securities 8,648 21 — (871) 7,798 Other asset-backed securities 9,542 5 — (417) 9,130 Other (3) 2,128 10 — (186) 1,952 Total investments in AFS debt securities $ 180,629 $ 570 $ — $ (6,363) $ 174,836 December 31, 2022 U.S. Treasury securities $ 121,282 $ 217 $ — $ (3,510) $ 117,989 Multinational securities (2) 19,658 109 — (724) 19,043 Corporate bonds 41,890 257 — (2,644) 39,503 Agency mortgage-backed securities 8,899 22 — (991) 7,930 Other asset-backed securities 9,556 5 — (514) 9,047 Other (3) 2,133 21 — (228) 1,926 Total investments in AFS debt securities $ 203,418 $ 631 $ — $ (8,611) $ 195,438 _____________________ (1) As of March 31, 2023 and December 31, 2022, we concluded that there was no credit loss attributable to securities in unrealized loss positions. Additionally, we do not intend to sell the securities in loss positions nor is it more likely than not that we will be required to sell the securities prior to recovery of the amortized cost basis. (2) Includes sovereign foreign and supranational bonds. (3) Includes state and city municipal bond securities. The following table presents information about our investments in AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2023 and December 31, 2022. Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses March 31, 2023 U.S. Treasury securities $ 7,705 $ (196) $ 92,214 $ (2,077) $ 99,919 $ (2,273) Multinational securities — — 19,167 (504) 19,167 (504) Corporate bonds — — 36,870 (2,112) 36,870 (2,112) Agency mortgage-backed securities — — 7,798 (871) 7,798 (871) Other asset-backed securities — — 9,130 (417) 9,130 (417) Other — — 1,952 (186) 1,952 (186) Total investments in AFS debt securities $ 7,705 $ (196) $ 167,131 $ (6,167) $ 174,836 $ (6,363) Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2022 U.S. Treasury securities $ 27,759 $ (1,171) $ 90,230 $ (2,339) $ 117,989 $ (3,510) Multinational securities — — 19,043 (724) 19,043 (724) Corporate bonds 4,480 (313) 35,023 (2,331) 39,503 (2,644) Agency mortgage-backed securities 6,448 (814) 1,482 (177) 7,930 (991) Other asset-backed securities — — 9,047 (514) 9,047 (514) Other 745 (200) 1,181 (28) 1,926 (228) Total investments in AFS debt securities $ 39,432 $ (2,498) $ 156,006 $ (6,113) $ 195,438 $ (8,611) The following table presents the amortized cost and fair value of our investments in AFS debt securities by contractual maturity: Due Within One Year Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Total March 31, 2023 Investments in AFS debt securities—Amortized cost: U.S. Treasury securities $ 72,228 $ 29,716 $ — $ — $ 101,944 Multinational securities 19,596 — — — 19,596 Corporate bonds 10,192 25,248 3,331 — 38,771 Agency mortgage-backed securities — 180 804 7,664 8,648 Other asset-backed securities — 7,599 1,943 — 9,542 Other 1,191 — — 937 2,128 Total investments in AFS debt securities $ 103,207 $ 62,743 $ 6,078 $ 8,601 $ 180,629 Weighted average yield for investments in AFS debt securities (1) 4.69 % 5.70 % 0.01 % 9.04 % 5.10 % Investments in AFS debt securities—Fair value (2) : U.S. Treasury securities $ 71,098 $ 28,573 $ — $ — $ 99,671 Multinational securities 19,092 — — — 19,092 Corporate bonds 9,827 23,843 2,989 — 36,659 Agency mortgage-backed securities — 170 736 6,871 7,777 Other asset-backed securities — 7,252 1,873 — 9,125 Other 1,173 — — 769 1,942 Total investments in AFS debt securities $ 101,190 $ 59,838 $ 5,598 $ 7,640 $ 174,266 _____________________ (1) The weighted average yield represents the effective yield for the investment securities and is computed based on the amortized cost of each security. (2) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $570 as of March 31, 2023. Gross realized gains and losses on our investments in AFS debt securities were $3,356 and $509, respectively, during the three months ended March 31, 2023, and were immaterial during the three months ended March 31, 2022. During the three months ended March 31, 2023 and 2022, there were no transfers between classifications of our investments in AFS debt securities. See Note 10. Equity for unrealized gains and losses on our investments in AFS debt securities and amounts reclassified out of accumulated other comprehensive income (loss) (“AOCI”). Securitization Investments The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs, which are presented within investment securities in the condensed consolidated balance sheets: March 31, December 31, Personal loans $ 14,892 $ 20,172 Student loans 170,340 181,159 Securitization investments $ 185,232 $ 201,331 |
Securitization and Variable Int
Securitization and Variable Interest Entities | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Securitization and Variable Interest Entities | Securitization and Variable Interest Entities Consolidated VIEs We consolidate certain securitization trusts in which we have a variable interest and are deemed to be the primary beneficiary. The VIEs are SPEs with portfolio loans securing debt obligations. The SPEs were created and designed to transfer credit and interest rate risk associated with consumer loans through the issuance of collateralized notes and trust certificates. We make standard representations and warranties to repurchase or replace qualified portfolio loans. Aside from these representations, the holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying portfolio loans securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. We hold a significant interest in these financing transactions through our ownership of a portion of the residual interest in certain VIEs. In addition, in some cases, we invest in the debt obligations issued by the VIE. Our investments in consolidated VIEs eliminate in consolidation. The residual interest is the first VIE interest to absorb losses should the loans securing the debt obligations not provide adequate cash flows to satisfy more senior claims and is the interest that we expect to absorb the expected gains and losses of the VIE. Our exposure to credit risk in sponsoring SPEs is limited to our investment in the VIE. VIE creditors have no recourse against our general credit. As of March 31, 2023 and December 31, 2022, we had seven and six consolidated VIEs, respectively, on our condensed consolidated balance sheets. During the three months ended March 31, 2023, we established one consolidated VIE. The assets of consolidated VIEs that were included in our condensed consolidated balance sheets may only be used to settle obligations of consolidated VIEs and were in excess of those obligations as of March 31, 2023 and December 31, 2022. Intercompany balances are eliminated upon consolidation. Nonconsolidated VIEs We have created and designed personal loan and student loan trusts to transfer associated credit and interest rate risk associated with the loans through the issuance of collateralized notes and residual certificates. We have a variable interest in the nonconsolidated loan trusts, as we own collateralized notes and residual certificates in the loan trusts that absorb variability. We also have continuing, non-controlling involvement with the trusts as the servicer. As servicer, we have the power to perform the activities which most impact the economic performance of the VIE, but since we hold an insignificant financial interest in the trusts, we are not the primary beneficiary. This financial interest represents the equity ownership interest in the loan trusts, wherein there is an obligation to absorb losses and the right to receive benefits from residual certificate ownership. The maximum exposure to loss as a result of our involvement with the nonconsolidated VIEs is limited to our investment. We did not provide financial support to any nonconsolidated VIEs beyond our initial equity investment. There are no liquidity arrangements, guarantees or other commitments by third parties that may affect the fair value or risk of our variable interests in nonconsolidated VIEs. As of March 31, 2023 and December 31, 2022, we had investments in 22 and 23 nonconsolidated VIEs, respectively. During the three months ended March 31, 2023, we exercised a securitization clean up call on one nonconsolidated VIE and collapsed the associated trust. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Deposits We commenced offering deposit accounts (referred to as “checking and savings” accounts within SoFi Money) to our members through SoFi Bank in the first quarter of 2022. The following table presents a detail of interest-bearing deposits: March 31, 2023 December 31, 2022 Savings deposits $ 6,361,587 $ 4,383,953 Demand deposits (1) 2,095,440 1,912,452 Time deposits (1)(2) 1,559,377 969,387 Total interest-bearing deposits $ 10,016,404 $ 7,265,792 _____________________ (1) As of March 31, 2023 and December 31, 2022, includes brokered deposits of $1,620,767 and $1,026,400, respectively, of which $1,526,195 and $940,000, respectively, are time deposits and $94,572 and $86,400, respectively, are demand deposits. (2) As of March 31, 2023 and December 31, 2022, the amount of time deposits that exceeded the insured limit (referred to as “uninsured deposits”) totaled $23,317 and $20,842, respectively. We also have noninterest-bearing deposits associated with legacy Golden Pacific accounts. As of March 31, 2023, future maturities of our total time deposits were as follows: Remainder of 2023 $ 1,201,290 2024 357,045 2025 550 2026 289 2027 — Thereafter 203 Total $ 1,559,377 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the components of our debt: Borrowing Description March 31, 2023 December 31, 2022 Total Collateral (1) Stated Interest Rate (2) Termination/ Maturity (3) Total Capacity Total Outstanding (4) Total Outstanding Debt Facilities Personal loan warehouse facilities $ 1,845,226 5.00% – 6.71% June 2023 – January 2032 $ 4,100,000 $ 1,539,865 $ 1,452,085 Student loan warehouse facilities 2,737,906 5.42% – 6.66% April 2023 – June 2025 4,180,000 1,868,019 1,504,926 Credit card warehouse facility — 6.26% August 2024 100,000 — — Risk retention warehouse facilities (5) 117,157 6.37% – 7.19% January 2024 – October 2027 200,000 95,196 101,964 Revolving credit facility (6) 5.86% September 2023 560,000 486,000 486,000 Other Debt Convertible senior notes (7) —% October 2026 1,200,000 1,200,000 Other financing (8) 28,735 23,955 — — Securitizations Personal loan securitizations 955,674 0.49% – 6.21% September 2030 – May 2031 738,588 529,132 Student loan securitizations 210,040 1.83% – 9.29% April 2023 – July 2040 231,927 246,856 Total, before unamortized debt issuance costs, premiums and discounts $ 6,159,595 $ 5,520,963 Less: unamortized debt issuance costs, premiums and discounts (34,094) (35,081) Total debt $ 6,125,501 $ 5,485,882 _________________ (1) As of March 31, 2023, represents the total of the unpaid principal balances within each debt category, with the exception of the risk retention warehouse facilities, which include securitization-related investments carried at fair value. In addition, certain securitization interests that eliminate in consolidation are pledged to risk retention warehouse facilities. Collateral balances relative to debt balances may vary period to period due to the timing of the next scheduled payment to the warehouse facility. (2) For variable-rate debt, the ranges of stated interest rates are based on the interest rates in effect as of March 31, 2023. The interest on our variable-rate debt is typically designed as a reference rate plus a spread. Reference rates as of March 31, 2023 included one-month London Inter-Bank Offered Rate (“LIBOR”), three-month LIBOR, overnight Secured Overnight Financing Rate (“SOFR”), one-month SOFR, three-month SOFR, prime rate and commercial paper rates determined by the facility lenders. As debt arrangements are renewed, the reference rate and/or spread are subject to change. Unused commitment fees ranging from 0 to 65 basis points (“bps”) on our various warehouse facilities are recognized within noninterest expense—general and administrative in our condensed consolidated statements of operations and comprehensive income (loss). (3) For securitization debt, the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts. Our maturity date represents the legal maturity of the last class of maturing notes. Securitization debt matures as loan collateral payments are made. (4) There were no debt discounts or premiums issued during the three months ended March 31, 2023. (5) For risk retention warehouse facilities, we only state capacity amounts for facilities wherein we can pledge additional asset-backed bonds and residual investments as of the balance sheet date. (6) As of March 31, 2023, $6.0 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure a letter of credit. Refer to our letter of credit disclosures in Note 15. Commitments, Guarantees, Concentrations and Contingencies for more details. Additionally, the interest rate presented is the interest rate on standard withdrawals on our revolving credit facility, while same-day withdrawals incur interest based on prime rate. In April 2023, the Company amended and restated the terms of the revolving credit facility. See Note 18. Subsequent Events to the Notes to Condensed Consolidated Financial Statements for additional information. (7) The original issue discount and debt issuance costs related to the convertible senior notes are amortized into interest expense—corporate borrowings in the condensed consolidated statements of operations and comprehensive income (loss) using the effective interest method over the contractual term of the notes. For the three months ended March 31, 2023 and 2022, total interest expense on the convertible notes was $1,272 and $1,267, respectively, related to amortization of debt discount and issuance costs, and the effective interest rate was 0.11% and 0.11%, respectively. As of March 31, 2023 and December 31, 2022, unamortized debt discount and issuance costs were $18.1 million and $19.4 million, respectively, and the net carrying amount was $1.18 billion and $1.18 billion, respectively. (8) Includes $28.7 million of loans pledged as collateral to secure $19.0 million of available borrowing capacity with the Federal Home Loan Bank (“FHLB”), of which $13.7 million was not available as it was utilized to secure letters of credit. Refer to our letter of credit disclosures in Note 15. Commitments, Guarantees, Concentrations and Contingencies for more details. Also includes unsecured available borrowing capacity of $5.0 million with correspondent banks. Material Changes to Debt Arrangements During the three months ended March 31, 2023, we opened one personal loan warehouse facility with an aggregate maximum available capacity of $500.0 million, and closed one risk retention warehouse facility. Our warehouse and securitization debt is secured by a continuing lien and security interest in the loans financed by the proceeds. Within each of our debt facilities, we must comply with certain operating and financial covenants. These financial covenants include, but are not limited to, maintaining: (i) a certain minimum tangible net worth, (ii) minimum cash and cash equivalents, and (iii) a maximum leverage ratio of total debt to tangible net worth. Our debt covenants can lead to restricted cash classifications in our condensed consolidated balance sheets. Our subsidiaries are restricted in the amount that can be distributed to the parent company only to the extent that such distributions would cause the financial covenants to not be met. We were in compliance with all financial covenants. We act as a guarantor for our wholly-owned subsidiaries in several arrangements in the case of default. As of March 31, 2023, we have not identified any risks of nonpayment by our wholly-owned subsidiaries. Maturities of Borrowings Future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows: March 31, 2023 Remainder of 2023 $ 486,000 2024 — 2025 — 2026 1,200,000 2027 — Thereafter — Total $ 1,686,000 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity Temporary Equity Pursuant to SoFi Technologies’ Certificate of Incorporation dated May 28, 2021, the Company is authorized to issue 100,000,000 shares of preferred stock having a par value of $0.0001 per share (“SoFi Technologies Preferred Stock”) and 100,000,000 shares of redeemable preferred stock having a par value of $0.0000025 per share (“SoFi Technologies Redeemable Preferred Stock”). The Company’s Board of Directors has the authority to issue SoFi Technologies Preferred Stock and SoFi Technologies Redeemable Preferred Stock and to determine the rights, preferences, privileges and restrictions, including voting rights, of those shares. The authorized shares of SoFi Technologies Redeemable Preferred Stock is inclusive of 4,500,000 shares of Series 1 redeemable preferred stock (“Series 1 Redeemable Preferred Stock”), which reflect the conversion on a one-for-one basis of shares of Social Finance Series 1 preferred stock in conjunction with the Business Combination. Shares of SoFi Technologies Series 1 Redeemable Preferred Stock that are redeemed, purchased or otherwise acquired by the Company will be canceled and may not be reissued by the Company. The Series 1 Redeemable Preferred Stock remains classified as temporary equity because the Series 1 Redeemable Preferred Stock is not fully controlled by the issuer, SoFi Technologies. As of March 31, 2023, there were 3,234,000 shares of Series 1 Redeemable Preferred Stock issued and outstanding, which had an original issuance price of $100.00. Dividends During both the three months ended March 31, 2023 and 2022, the Series 1 preferred stockholders were entitled to dividends of $9,968. Dividends payable were $9,968 as of March 31, 2023. There were no dividends payable as of December 31, 2022. Permanent Equity On June 1, 2021, the Company’s common stock began trading on the Nasdaq Global Select Market under the ticker symbol “SOFI”. Pursuant to SoFi Technologies’ Certificate of Incorporation, the Company is authorized to issue 3,000,000,000 shares of common stock, with a par value of $0.0001 per share, and 100,000,000 shares of non-voting common stock, with a par value of $0.0001 per share. As of March 31, 2023, the Company had 940,338,835 shares of common stock and no shares of non-voting common stock issued and outstanding. The Company reserved the following common stock for future issuance: March 31, December 31, Outstanding stock options, restricted stock units and performance stock units 122,782,283 107,851,565 Outstanding common stock warrants 12,170,990 12,170,990 Conversion of convertible notes (1) 53,538,000 53,538,000 Possible future issuance under stock plans 49,923,057 26,434,957 Total common stock reserved for future issuance 238,414,330 199,995,512 ____________________ (1) Represents the number of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the balance sheet date. Dividends Common stockholders and non-voting common stockholders are entitled to dividends when and if declared by the Board of Directors and subject to government regulation over banks and bank holding companies. There were no dividends declared or paid to common stockholders during the three months ended March 31, 2023 and 2022. Accumulated Other Comprehensive Income (Loss) AOCI primarily consists of accumulated net unrealized gains or losses associated with our investments in AFS debt securities and foreign currency translation adjustments. The following table presents the rollforward of AOCI, inclusive of the changes in the components of other comprehensive income (loss): AFS Debt Securities Foreign Currency Translation Adjustments Total Three Months Ended March 31, 2023 AOCI, beginning balance $ (8,611) $ 315 $ (8,296) Other comprehensive income (loss) before reclassifications (1) 2,076 (293) 1,783 Amounts reclassified from AOCI into earnings 172 — 172 Net current-period other comprehensive income (loss) (2) 2,248 (293) 1,955 AOCI, ending balance $ (6,363) $ 22 $ (6,341) Three Months Ended March 31, 2022 AOCI, beginning balance $ (1,351) $ (120) $ (1,471) Other comprehensive loss before reclassifications (1) (4,616) (38) (4,654) Amounts reclassified from AOCI into earnings 161 — 161 Net current-period other comprehensive loss (2) (4,455) (38) (4,493) AOCI, ending balance $ (5,806) $ (158) $ (5,964) ____________________ (1) Gross realized gains and losses from sales of our investments in AFS debt securities that were reclassified from AOCI to earnings are recorded within noninterest income—other in the condensed consolidated statements of operations and comprehensive income (loss). There were no reclassifications related to foreign currency translation adjustments during the three months ended March 31, 2023 and 2022. (2) There were no material tax impacts during the periods presented due to reserves against deferred tax assets in jurisdictions where other comprehensive loss activity was generated. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The following table presents the gains (losses) recognized on our derivative instruments: Three Months Ended March 31, 2023 2022 Interest rate swaps (1) $ (28,456) $ 134,514 Interest rate caps (1) (1,695) 2,623 Home loan pipeline hedges (1) (1,077) 23,470 Derivative contracts to manage future loan sale execution risk (31,228) 160,607 Interest rate swaps (2) (1,108) 6,319 Interest rate lock commitments (“IRLCs”) (1) 418 (6,798) Interest rate caps (1) 1,771 (2,124) Purchase price earn-out (1)(3) 9 831 Third-party warrants (4) 24 75 Total $ (30,114) $ 158,910 _____________________ (1) Recorded within noninterest income—loan origination and sales in the condensed consolidated statements of operations and comprehensive income (loss). (2) Represents derivative contracts to manage securitization investment interest rate risk, which are recorded within noninterest income—securitizations in the condensed consolidated statements of operations and comprehensive income (loss). (3) In conjunction with a loan sale agreement, we are entitled to receive payments from the buyer of the loans underlying the agreement if the internal rate of return (as defined in the loan sale agreement) on such loans exceeds a specified hurdle, subject to a dollar cap. (4) Includes amounts recorded within noninterest income—other, noninterest expense—cost of operations and noninterest expense—general and administrative in the condensed consolidated statements of operations and comprehensive income (loss), the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired, as we are also a customer of the third party. Certain derivative instruments are subject to enforceable master netting arrangements. Accordingly, we present our net asset or liability position by counterparty in the condensed consolidated balance sheets. Additionally, since our cash collateral balances do not approximate the fair value of the derivative position, we do not offset our right to reclaim cash collateral or obligation to return cash collateral against recognized derivative assets or liabilities. The following table presents information about derivative instruments subject to enforceable master netting arrangements: March 31, 2023 December 31, 2022 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Interest rate swaps $ 3,465 $ (1,281) $ 23,128 $ — Interest rate caps — (7,481) — (9,251) Home loan pipeline hedges 9 (2,087) 1,484 (80) Total, gross 3,474 (10,849) 24,612 (9,331) Derivative netting (1,290) 1,290 (80) 80 Total, net (1) $ 2,184 $ (9,559) $ 24,532 $ (9,251) _____________________ (1) As of March 31, 2023, we had a cash collateral requirement related to these instruments of $2,078. We did not have a cash collateral requirement related to these instruments as of December 31, 2022. The following table presents the notional amount of derivative contracts outstanding: March 31, 2023 December 31, 2022 Derivative contracts to manage future loan sale execution risk: Interest rate swaps $ 5,428,177 $ 5,638,177 Interest rate caps 405,000 405,000 Home loan pipeline hedges 140,000 126,000 Interest rate caps (1) 405,000 405,000 Interest rate swaps (2) 196,823 171,823 IRLCs (3) 108,375 82,335 Total $ 6,683,375 $ 6,828,335 _____________________ (1) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk. (2) Represents interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments. (3) Amounts correspond with home loan funding commitments subject to IRLC agreements. While the notional amounts of derivative instruments give an indication of the volume of our derivative activity, they do not necessarily represent amounts exchanged by parties and are not a direct measure of our financial exposure. See Note 12. Fair Value Measurements |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements The following table summarizes, by level within the fair value hierarchy, the estimated fair values of our assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets: March 31, 2023 December 31, 2022 Fair Value Fair Value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Investments in AFS debt securities (1)(2) $ 119,086 $ 55,750 $ — $ 174,836 $ 137,032 $ 58,406 $ — $ 195,438 Asset-backed bonds (2)(3) — 142,272 — 142,272 — 155,093 — 155,093 Residual investments (2)(3) — — 42,960 42,960 — — 46,238 46,238 Loans at fair value — — 15,858,105 15,858,105 — — 13,557,074 13,557,074 Servicing rights — — 146,514 146,514 — — 149,854 149,854 Third party warrants (4)(5) — — 630 630 — — 630 630 Derivative assets (4)(6)(7) — 3,474 — 3,474 — 24,612 — 24,612 Purchase price earn-out (4)(8) — — — — — — 54 54 IRLCs (4)(9) — — 634 634 — — 216 216 Student loan commitments (4)(9) — — 75 75 — — — — Interest rate caps (4)(7) — 7,484 — 7,484 — 9,178 — 9,178 Digital assets safeguarding asset (4)(10) — 167,954 — 167,954 — 106,826 — 106,826 Total assets $ 119,086 $ 376,934 $ 16,048,918 $ 16,544,938 $ 137,032 $ 354,115 $ 13,754,066 $ 14,245,213 Liabilities Debt (11) $ — $ 74,675 $ — $ 74,675 $ — $ 89,142 $ — $ 89,142 Residual interests classified as debt — — 15,565 15,565 — — 17,048 17,048 Derivative liabilities (4)(6)(7) — 10,849 — 10,849 — 9,331 — 9,331 Student loan commitments (4)(9) — — — — — — 236 236 Digital assets safeguarding liability (4)(10) — 167,954 — 167,954 — 106,826 — 106,826 Total liabilities $ — $ 253,478 $ 15,565 $ 269,043 $ — $ 205,299 $ 17,284 $ 222,583 _____________________ (1) The investments in AFS debt securities that were classified as Level 2 rely upon observable inputs other than quoted prices, dealer quotes in markets that are not active and implied pricing derived from new issuances of similar securities. See Note 6. Investment Securities for additional information. (2) These assets are presented within investment securities in the condensed consolidated balance sheets. (3) These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. See Note 7. Securitization and Variable Interest Entities for additional information. We classify asset-backed bonds as Level 2 due to the use of quoted prices for similar assets in markets that are not active, as well as certain factors specific to us. The key inputs used to value the asset-backed bonds include the discount rate and conditional prepayment rate. The fair value of our asset-backed bonds was not materially impacted by default assumptions on the underlying securitization loans, as the subordinate residual interests are expected to absorb all estimated losses based on our default assumptions for the period. We classify the residual investments as Level 3 due to the reliance on significant unobservable valuation inputs. (4) These assets and liabilities are presented within other assets and accounts payable, accruals and other liabilities , respectively, in the condensed consolidated balance sheets. (5) The key unobservable assumption used in the fair value measurement of the third party warrants was the price of the stock underlying the warrants. The fair value was measured as the difference between the stock price and the strike price of the warrants. As the strike price was insignificant, we concluded that the impact of time value on the fair value measure was immaterial. (6) For certain derivative instruments for which an enforceable master netting agreement exists, we elected to net derivative assets and derivative liabilities by counterparty. These instruments are presented on a gross basis herein. See Note 11. Derivative Financial Instruments for additional information. (7) Home loan pipeline hedges represent to-be-announced (“TBA”) securities used as economic hedges of loan fair values and are classified as Level 2, as we rely on quoted market prices from similar loan pools that transact in the marketplace. Interest rate swaps and interest rate caps are classified as Level 2, because these financial instruments do not trade in active markets with observable prices, but rely on observable inputs other than quoted prices. As of March 31, 2023 and December 31, 2022, interest rate swaps and interest rate caps were valued using the overnight SOFR curve and the implied volatilities suggested by the SOFR rate curve. These were determined to be observable inputs from active markets. (8) The purchase price earn-out provision is classified as Level 3 because of our reliance on unobservable inputs related to the underlying loan portfolio performance, such as conditional prepayment rates, annual default rates and discount rates. (9) IRLCs and student loan commitments are classified as Level 3 because of our reliance on assumed loan funding probabilities. The assumed probabilities are based on our internal historical experience with home loans and student loans similar to those in the funding pipelines on the measurement date. (10) The digital assets safeguarding liability and corresponding safeguarding asset are classified as Level 2, because they do not trade in active markets, and are valued using quoted prices on an active exchange that has been identified as the principal market for the underlying digital assets that are being held by our third-party custodians for the benefit of our members. (11) The fair value of our securitization debt was classified as Level 2 and valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. As of March 31, 2023 and December 31, 2022, the unpaid principal related to debt measured at fair value was $82,647 and $98,868, respectively. For the three months ended March 31, 2023, losses from changes in fair value were $944. The estimated amounts of gains (losses) included in earnings attributable to changes in instrument-specific credit risk, which were derived principally from observable changes in credit spread as observed in the bond market, were immaterial. Level 3 Recurring Fair Value Rollforward The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). We did not have any transfers into or out of Level 3 during the periods presented. Fair Value at Fair Value at January 1, 2023 Impact on Earnings Purchases Sales Issuances Settlements March 31, 2023 Assets Personal loans $ 8,610,434 $ 86,094 $ 40,039 $ — $ 2,951,358 $ (1,150,926) $ 10,536,999 Student loans 4,877,177 67,190 — — 525,373 (229,681) 5,240,059 Home loans 69,463 (494) 552 (77,880) 89,787 (381) 81,047 Loans at fair value (1) 13,557,074 152,790 40,591 (77,880) 3,566,518 (1,380,988) 15,858,105 Servicing rights 149,854 12,084 613 (135) 954 (16,856) 146,514 Residual investments (2) 46,238 1,104 — (306) — (4,076) 42,960 Purchase price earn out 54 9 — — — (63) — IRLCs (3) 216 634 — — — (216) 634 Student loan commitments (3) (236) 75 — — — 236 75 Third party warrants 630 — — — — — 630 Liabilities Residual interests classified as debt (2) (17,048) (89) — — — 1,572 (15,565) Net impact on earnings 166,607 Fair Value at Fair Value at January 1, 2022 Impact on Earnings Purchases Sales Issuances Settlements March 31, 2022 Assets Personal loans $ 2,289,426 $ (7,016) $ 160,748 $ (977,920) $ 2,026,004 $ (372,454) $ 3,118,788 Student loans 3,450,837 (42,370) 116,433 (544,150) 983,804 (227,115) 3,737,439 Home loans 212,709 (9,162) 498 (365,370) 312,383 (4,400) 146,658 Loans at fair value (1) 5,952,972 (58,548) 277,679 (1,887,440) 3,322,191 (603,969) 7,002,885 Servicing rights 168,259 11,580 629 (1,410) 16,486 (22,039) 173,505 Residual investments (2) 121,019 762 — — — (15,104) 106,677 Purchase price earn out 4,272 830 — — — (2,817) 2,285 Student loan commitments (3) 2,220 23 — — — (2,220) 23 Third party warrants 1,369 (142) — — — — 1,227 Liabilities Residual interests classified as debt (2) (93,682) (2,963) — — — 26,113 (70,532) IRLCs (3) 3,759 (3,039) — — — (3,759) (3,039) Net impact on earnings (51,497) _____________________ (1) For loans at fair value, issuances represent the principal balance of loans originated during the period. Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three months ended March 31, 2023 and 2022 included securitization clean-up calls of $39,936 and $275,499, respectively. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Gains and losses recognized in earnings include changes in accumulated interest and fair value adjustments on loans originated during the period and on loans held at the balance sheet date, as well as loan charge-offs. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains (losses) included in earnings attributable to changes in instrument-specific credit risk were $(50,529) and $6,496 during the three months ended March 31, 2023 and 2022, respectively. The gains (losses) attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument. (2) For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, we record changes in fair value within noninterest income—securitizations in the condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively. (3) For IRLCs and student loan commitments, settlements reflect funded and unfunded adjustments representing the unpaid principal balance of funded and unfunded loans during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. For year-to-date periods, amounts represent the summation of the per-quarter effects. Changes in fair value are recorded within noninterest income—loan origination and sales in the condensed consolidated statements of operations and comprehensive income (loss). Level 3 Significant Inputs Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Level 3 fair value measurements include unobservable inputs for assets or liabilities for which there is little or no market data, which requires us to develop our own assumptions. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the asset or liability. Loans The following key unobservable assumptions were used in the fair value measurement of our loans: March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Conditional prepayment rate 14.0% – 24.2% 19.1% 17.3% – 25.5% 19.1% Annual default rate 3.2% – 52.8% 4.6% 3.8% – 37.7% 4.4% Discount rate 5.2% – 8.6% 5.5% 5.4% – 8.3% 6.1% Student loans Conditional prepayment rate 8.5% – 12.9% 10.4% 16.3% – 21.8% 20.4% Annual default rate 0.2% – 4.3% 0.4% 0.2% – 4.5% 0.5% Discount rate 3.7% – 8.1% 4.1% 3.6% – 8.7% 4.0% Home loans Conditional prepayment rate 2.1% – 13.4% 8.9% 2.0% – 10.2% 7.0% Annual default rate 0.1% – 0.9% 0.1% 0.1% – 1.3% 0.1% Discount rate 5.6% – 14.5% 6.0% 5.7% – 14.1% 5.9% The key assumptions are defined as follows: • Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Annual default rate — The annualized rate of borrowers who do not make loan payments on time. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the loans. The discount rate is primarily determined based on an underlying benchmark rate curve and spread(s), the latter of which is determined based on factors including, but not limited to, weighted average coupon rate, prepayment rate, default rate and resulting expected duration of the assets. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. See Note 4. Loans for additional loan fair value disclosures. Servicing Rights Servicing rights for personal loans and student loans do not trade in an active market with readily observable prices. Similarly, home loan servicing rights infrequently trade in an active market. At the time of the underlying loan sale or the assumption of servicing rights, the fair value of servicing rights is determined using a discounted cash flow methodology based on observable and unobservable inputs. Management classifies servicing rights as Level 3 due to the use of significant unobservable inputs in the fair value measurement. The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights: March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Market servicing costs 0.2% – 0.6% 0.3% 0.2% – 0.5% 0.3% Conditional prepayment rate 18.2% – 28.9% 22.8% 17.9% – 31.3% 22.7% Annual default rate 3.5% – 17.5% 5.7% 3.4% – 7.9% 4.9% Discount rate 7.8% – 7.8% 7.8% 7.8% – 7.8% 7.8% Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 9.1% – 15.3% 12.5% 15.4% – 21.9% 17.8% Annual default rate 0.3% – 3.7% 0.5% 0.3% – 4.3% 0.4% Discount rate 7.8% – 7.8% 7.8% 7.8% – 7.8% 7.8% Home loans Market servicing costs 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Conditional prepayment rate 4.9% – 12.3% 5.5% 4.9% – 11.0% 5.2% Annual default rate 0.1% – 0.2% 0.1% 0.1% – 0.1% 0.1% Discount rate 9.0% – 9.0% 9.0% 9.0% – 9.0% 9.0% The key assumptions are defined as follows: • Market servicing costs — The fee a willing market participant, which we validate through actual third-party bids for our servicing, would require for the servicing of personal loans, student loans and home loans with similar characteristics as those in our serviced portfolio. An increase in the market servicing cost, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Annual default rate — The annualized rate of default within the total serviced loan balance. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the servicing rights. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. The following table presents the estimated decrease to the fair value of our servicing rights if the key assumptions had each of the below adverse changes: March 31, 2023 December 31, 2022 Market servicing costs 2.5 basis points increase $ (10,615) $ (10,395) 5.0 basis points increase (21,230) (20,807) Conditional prepayment rate 10% increase $ (3,592) $ (4,036) 20% increase (7,011) (7,833) Annual default rate 10% increase $ (163) $ (166) 20% increase (326) (331) Discount rate 100 basis points increase $ (4,093) $ (3,905) 200 basis points increase (7,921) (7,562) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the effect of an adverse variation in a particular assumption on the fair value of our servicing rights is calculated while holding the other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Residual Investments and Residual Interests Classified as Debt Residual investments and residual interests classified as debt do not trade in active markets with readily observable prices, and there is limited observable market data for reference. The fair values of residual investments and residual interests classified as debt are determined using a discounted cash flow methodology. Management classifies residual investments and residual interests classified as debt as Level 3 due to the use of significant unobservable inputs in the fair value measurements. The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt: March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 12.7% – 25.2% 14.4% 17.9% – 32.0% 19.9% Annual default rate 0.4% – 5.8% 1.1% 0.4% – 5.4% 1.1% Discount rate 5.0% – 10.0% 6.9% 4.8% – 10.5% 6.7% Residual interests classified as debt Conditional prepayment rate 12.5% – 13.1% 12.6% 17.2% – 18.1% 17.8% Annual default rate 0.6% – 0.8% 0.6% 0.6% – 0.8% 0.7% Discount rate 7.8% – 7.8% 7.8% 7.5% – 7.5% 7.5% The key assumptions are defined as follows: • Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period for the pool of loans in the securitization. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Annual default rate — The annualized rate of borrowers who fail to remain current on their loans for the pool of loans in the securitization. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the residual investments and residual interests classified as debt. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. Loan Commitments We classify student loan commitments as Level 3 because the assets do not trade in an active market with readily observable prices and, as such, our valuations utilize significant unobservable inputs. Additionally, we classify IRLCs as Level 3, as our IRLCs are inherently uncertain and unobservable given that a home loan origination is contingent on a plethora of factors. The following key unobservable inputs were used in the fair value measurements of our IRLCs and student loan commitments: March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 2.6% – 58.5% 57.8% 11.1% – 58.6% 46.3% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% – 95.0% 95.0% ___________________ (1) The aggregate amount of student loans we committed to fund was $4,842 as of March 31, 2023. See Note 11. Derivative Financial Instruments for the aggregate notional amount associated with IRLCs. The key assumption is defined as follows: • Loan funding probability — Our expectation of the percentage of IRLCs or student loan commitments which will become funded loans. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. An increase in the loan funding probabilities, in isolation, would result in an increase in a fair value measurement. The weighted average assumptions were weighted based on relative fair values. Safeguarding Assets and Liabilities Through our SoFi Invest product (via our wholly-owned subsidiary, SoFi Digital Assets, LLC, a licensed money transmitter), our members can invest in digital assets. We engage third parties to provide custodial services for our digital assets offering, which includes holding the cryptographic key information and working to protect the digital assets from loss or theft. The third-party custodians hold digital assets as custodial assets in an account in SoFi’s name for the benefit of our members. We maintain the internal recordkeeping of our members’ digital assets, including the amount and type of digital assets owned by each of our members in the custodial accounts. We currently utilize two third-party custodians. Therefore, we have concentration risk in the event the custodians are not able to perform in accordance with our agreements. As of March 31, 2023, we did not identify any loss events. The following table presents the significant digital assets held by our third-party custodians on behalf of our members: March 31, 2023 December 31, 2022 Bitcoin (BTC) $ 76,729 $ 44,346 Ethereum (ETH) 55,026 37,826 Cardano (ADA) 8,403 5,217 Dogecoin (DOGE) 5,483 4,784 Solana (SOL) 3,432 1,588 Litecoin (LTC) 3,165 2,492 Ethereum Classic (ETC) 2,957 2,333 All other (1) 12,759 8,240 Digital assets safeguarding liability and corresponding safeguarding asset $ 167,954 $ 106,826 ___________________ (1) Includes 23 and 23 digital assets as of March 31, 2023 and December 31, 2022, respectively, none of which were determined to be individually significant. Financial Instruments Not Measured at Fair Value The following table summarizes the carrying values and estimated fair values, by level within the fair value hierarchy, of our assets and liabilities that are not measured at fair value on a recurring basis in the condensed consolidated balance sheets: Fair Value Carrying Value Level 1 Level 2 Level 3 Total March 31, 2023 Assets Cash and cash equivalents (1) $ 2,487,778 $ 2,487,778 $ — $ — $ 2,487,778 Restricted cash and restricted cash equivalents (1) 489,736 489,736 — — 489,736 Loans at amortized cost (2) 328,029 — — 348,885 348,885 Other investments (3) 33,503 — 33,503 — 33,503 Total assets $ 3,339,046 $ 2,977,514 $ 33,503 $ 348,885 $ 3,359,902 Liabilities Deposits (4) $ 10,088,441 $ — $ 10,087,506 $ — $ 10,087,506 Debt (5) 6,050,826 847,511 4,874,094 — 5,721,605 Total liabilities $ 16,139,267 $ 847,511 $ 14,961,600 $ — $ 15,809,111 December 31, 2022 Assets Cash and cash equivalents (1) $ 1,421,907 $ 1,421,907 $ — $ — $ 1,421,907 Restricted cash and restricted cash equivalents (1) 424,395 424,395 — — 424,395 Loans at amortized cost (2) 307,957 — — 328,775 328,775 Other investments (3) 28,651 — 28,651 — 28,651 Total assets $ 2,182,910 $ 1,846,302 $ 28,651 $ 328,775 $ 2,203,728 Liabilities Deposits (4) $ 7,342,296 $ — $ 7,340,160 $ — $ 7,340,160 Debt (5) 5,396,740 826,242 4,219,574 — 5,045,816 Total liabilities $ 12,739,036 $ 826,242 $ 11,559,734 $ — $ 12,385,976 ___________________ (1) The carrying amounts of our cash and cash equivalents and restricted cash and restricted cash equivalents approximate their fair values due to the short-term maturities and highly liquid nature of these accounts. (2) The fair value of our credit cards was determined using a discounted cash flow model with key inputs relating to weighted average lives, expected lifetime loss rates and discount rate. The fair value of our commercial and consumer banking loans was determined using a discounted cash flow model with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults. (3) Other investments include Federal Reserve Bank (“FRB”) stock and FHLB stock, which are presented within other assets in the condensed consolidated balance sheets. (4) The fair values of our deposits without contractually defined maturities (such as demand and savings deposits) and our noninterest-bearing deposits approximate the carrying values. The fair value of our time-based deposits was determined using a discounted cash flow model based on rates currently offered for deposits of similar remaining maturities. (5) The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt and revolving credit facility debt were classified as Level 2 and based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was classified as Level 2 and valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. Nonrecurring Fair Value Measurements Investments in equity securities of $22,861 and $22,825 as of March 31, 2023 and December 31, 2022, respectively, which are presented within other assets in the condensed consolidated balance sheets, include investments for which fair values are not readily determinable, which we elect to measure using the measurement alternative method of accounting. The fair value measurements are classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs in the fair value measurements. As of March 31, 2023 and December 31, 2022, the balance was primarily composed of a $19,739 investment valued under the measurement alternative method during 2022 that was a former equity method investment. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The 2021 Stock Option and Incentive Plan (the “2021 Plan”) allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) (including performance stock units, or “PSUs”), dividend equivalents and other stock or cash based awards for issuance to its employees, non-employee directors and non-employee third parties. Shares associated with option exercises and RSU vesting are issued from the authorized pool. Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the condensed consolidated statements of operations and comprehensive income (loss): Three Months Ended March 31, 2023 2022 Technology and product development $ 18,228 $ 17,492 Sales and marketing 6,587 5,133 Cost of operations 1,500 4,143 General and administrative 37,911 50,253 Total $ 64,226 $ 77,021 Total compensation and benefits, inclusive of share-based compensation expense, was $216,415 and $187,809 for the three months ended March 31, 2023 and 2022, respectively. Compensation and benefits expenses are presented within each of the financial statement line items within noninterest expense in the condensed consolidated statements of operations and comprehensive income (loss). Stock Options The following is a summary of stock option activity: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding as of January 1, 2023 18,749,679 $ 7.43 4.7 Exercised (161,231) 1.04 Expired (18,571) 6.36 Outstanding as of March 31, 2023 18,569,877 $ 7.49 4.4 Exercisable as of March 31, 2023 18,525,473 $ 7.49 4.4 Total compensation cost related to unvested stock options not yet recognized as of March 31, 2023 was immaterial. Restricted Stock Units RSUs are equity awards granted to employees that entitle the holder to shares of our common stock when the awards vest. RSUs are measured based on the fair value of our common stock on the date of grant. The following table summarizes RSU activity: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2023 69,538,139 $ 9.07 Granted 27,547,218 6.21 Vested (1) (6,737,174) 9.16 Forfeited (4,208,806) 9.31 Outstanding as of March 31, 2023 86,139,377 $ 8.13 ________________________ (1) The total fair value, based on grant date fair value, of RSUs that vested during the three months ended March 31, 2023 was $61.7 million. As of March 31, 2023, there was $650.8 million of unrecognized compensation cost related to unvested RSUs, which will be recognized over a weighted average period of approximately 2.6 years. Performance Stock Units The following table summarizes PSU activity: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2023 19,563,747 $ 9.84 Forfeited (1,490,718) 7.51 Outstanding as of March 31, 2023 18,073,029 $ 10.03 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For interim periods, we follow the general recognition approach whereby tax expense is recognized using an estimated annual effective tax rate, which is applied to the year-to-date operating results. Additionally, we recognize tax expense or benefit for any discrete items occurring within the interim period that were excluded from the estimated annual effective tax rate. Our effective tax rate may be subject to fluctuations during the year due to impacts from the following items: (i) changes in forecasted pre-tax and taxable income or loss, (ii) changes in statutory law or regulations in jurisdictions where we operate, (iii) audits or settlements with taxing authorities, (iv) the tax impact of expanded product offerings or business acquisitions, and (v) changes in valuation allowance assumptions. For the three months ended March 31, 2023 and 2022, we recorded income tax benefit (expense) of $1,637 and $(752), respectively. Income taxes were primarily attributable to tax expense associated with the profitability of SoFi Bank in state jurisdictions where separate filings are required. For the three-month 2023 period, this expense was more than offset by income tax benefits from foreign losses in jurisdictions with net deferred tax liabilities related to Technisys. There were no material changes to our unrecognized tax benefits d uring the three months ended March 31, 2023, and we do not expect any other significant increases or decreases to unrecognized tax benefits within the next twelve months. During the three months ended March 31, 2023, we maintained a full valuation allowance against our net deferred tax assets in applicable jurisdictions. In certain foreign and state jurisdictions where sufficient deferred tax liabilities exist, no |
Commitments, Guarantees, Concen
Commitments, Guarantees, Concentrations and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees, Concentrations and Contingencies | Commitments, Guarantees, Concentrations and Contingencies Leases Our leases consist of operating and finance leases, the latter of which expire in 2040. Operating Leases We primarily lease our office premises under multi-year, non-cancelable operating leases. Our operating leases have terms expiring from 2023 to 2040, exclusive of renewal option periods. Our office leases contain renewal option periods ranging from one noninterest expense—general and administrative in the condensed consolidated statements of operations and comprehensive income (loss) related to a sublease arrangement of an office premise. Fair value was determined using a discounted cash flow methodology. Concentrations Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, restricted cash and restricted cash equivalents, residual investments and loans. We hold cash and cash equivalents and restricted cash and restricted cash equivalents in accounts at regulated domestic financial institutions in amounts that may exceed FDIC insured amounts. We believe these institutions are of high credit quality. We are dependent on third-party funding sources to originate loans, as well as our deposit balances. Additionally, we sell loans to various third parties. We have historically sold loans to a limited pool of third-party buyers. No individual third-party buyer accounted for 10% or more of consolidated total net revenues for the periods presented. Within our Technology Platform segment, we have a relatively smaller number of clients compared to our lending business. As such, the loss of one or a few of our top clients could be significant to that portion of our business. No individual client accounted for 10% or more of consolidated total net revenues for the periods presented. The Company is exposed to default risk on borrower loans originated and financed by us. There is no single borrower or group of borrowers that comprise a significant concentration of the Company’s loan portfolio. Likewise, the Company is not overly concentrated within a group of channel partners or other customers, with the exception of our distribution of personal loan residual interests in our sponsored personal loan securitizations, which we market to third parties, and the aforementioned whole loan buyers. Given we have a limited number of prospective buyers for our personal loan securitization residual interests, this might result in us utilizing a significant amount of deposits or our own capital to fund future residual interests in personal loan securitizations, or impact the execution of future securitizations if we are limited in our own ability to invest in the residual interest portion of future securitizations, or find willing buyers for securitization residual interests. Contingencies Legal Proceedings In limited instances, the Company may be subject to a variety of claims and lawsuits in the ordinary course of business. Regardless of the final outcome, defending lawsuits, claims, government investigations, and proceedings in which we are involved is costly and can impose a significant burden on management and employees, and there can be no assurances that we will receive favorable final outcomes. Juarez et al v. SoFi Lending Corp. SoFi Lending Corp. and SoFi (collectively, the “SoFi Defendants”) are defendants in a putative class action, captioned as Juarez v. Social Finance, Inc. et al., Civil Action No. 4:20-cv-03386-HSG (N.D. Cal.), filed against them in the United States District Court for the Northern District of California in May 2020. Plaintiffs, who are conditional permanent residents or Deferred Access for Childhood Arrival (“DACA”) holders, allege that the SoFi Defendants engaged in unlawful lending discrimination in violation of 42 U.S.C. § 1981 and California Civil Code, § 51, et seq., through policies and practices by making such categories of applicants ineligible for loans or eligible only with a co-signer who is a United States citizen or lawful permanent resident. Plaintiffs further allege that the SoFi Defendants violated the Fair Credit Reporting Act, by accessing the credit reports of non-United States citizen loan applicants who hold green cards with a validity period of less than two years without a permissible purpose. The parties entered into a settlement agreement that was fully executed in April 2022 and the plaintiffs have now moved for and obtained preliminary approval of the settlement from the court. The class settlement, which contemplates an aggregate payment by SoFi of an immaterial amount, remains subject to final court review and approval, which we expect to occur in 2023. Guarantees We have three types of repurchase obligations that we account for as financial guarantees, which are disclosed in our Annual Report on Form 10-K. In the event of a repurchase, we are typically required to pay the purchase price of the loans transferred. As of March 31, 2023 and December 31, 2022, we accrued liabilities within accounts payable, accruals and other liabilities in the condensed consolidated balance sheets of $1.0 million and $1.4 million, respectively, related to our estimated repurchase obligation, with the corresponding charges recorded within noninterest income—loan origination and sales in the condensed consolidated statements of operations and comprehensive income (loss). As of March 31, 2023 and December 31, 2022, the amounts associated with loans sold that were subject to the terms and conditions of our repurchase obligations totaled $5.0 billion and $5.1 billion, respectively. As of March 31, 2023 and December 31, 2022, we had a total of $8.6 million and $9.1 million, respectively, in letters of credit outstanding with financial institutions, which were issued for the purpose of securing certain of our operating lease obligations. A portion of the letters of credit was collateralized by $2.6 million and $3.1 million of our cash as of March 31, 2023 and December 31, 2022, respectively, which is included within restricted cash and restricted cash equivalents in the condensed consolidated balance sheets. As of March 31, 2023 and December 31, 2022, we had a total of $13.7 million and $11.7 million, respectively, in letters of credit outstanding with the FHLB, which serve as collateral for public deposits and were collateralized by loans. Mortgage Banking Regulatory Mandates We are subject to certain state-imposed minimum net worth requirements for the states in which we are engaged in the business of a residential mortgage lender. Noncompliance with these requirements on an annual basis could result in potential fines or penalties imposed by the applicable state. Future events or changes in mandates may affect our ability to meet mortgage banking regulatory requirements. As of March 31, 2023 and December 31, 2022, we were in compliance with all minimum net worth requirements and, therefore, have not accrued any liabilities related to fines or penalties. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share We compute loss per share attributable to common stock using the two-class method required for participating interests. Series 1 Redeemable Preferred Stock has preferential cumulative dividend rights. For each period presented, we increased net loss by the contractual amount of dividends payable to holders of Series 1 Redeemable Preferred Stock. Basic loss per share of common stock was computed by dividing net loss, adjusted for the impact of Series 1 Redeemable Preferred Stock dividends, by the weighted average number of shares of common stock outstanding during the period. We excluded the effect of all potentially dilutive common stock elements from the denominator in the computation of diluted loss per share, as their inclusion would have been anti-dilutive. The calculations of basic and diluted loss per share were as follows: Three Months Ended March 31, 2023 2022 Numerator: Net loss $ (34,422) $ (110,357) Less: Redeemable preferred stock dividends (9,968) (9,968) Net loss attributable to common stockholders – basic and diluted $ (44,390) $ (120,325) Denominator: Weighted average common stock outstanding – basic 929,270,723 852,853,596 Weighted average common stock outstanding – diluted 929,270,723 852,853,596 Loss per share – basic $ (0.05) $ (0.14) Loss per share – diluted $ (0.05) $ (0.14) We excluded the effect of the below elements from our calculation of diluted loss per share, as their inclusion would have been anti-dilutive, as there were no earnings attributable to common stockholders. These amounts represent the number of instruments outstanding at the end of the period. March 31, 2023 2022 Common stock options 18,569,877 20,059,315 Common stock warrants 12,170,990 12,170,990 Unvested RSUs 86,139,377 62,633,066 Unvested PSUs 18,073,029 23,092,586 Convertible notes (1) 53,538,000 53,538,000 Contingent common stock (2) 6,305,595 6,903,663 Potentially issuable contingent common stock (3) — 598,068 ________________________ (1) Represents the shares of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the date indicated. (2) As of March 31, 2023, includes contingently returnable common stock in connection with the Technisys Merger, which consists of shares that may be used to satisfy certain indemnification claims, subject to certain limitations, and to cover any outstanding claims or indemnifications pursuant to the merger agreement. See Note 2. Business Combinations for additional information. (3) As of March 31, 2022, included the maximum amount of potentially issuable contingent common stock in connection with the Technisys Merger, which was pending final agreement regarding a closing net working capital calculation specified in the merger agreement. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Segment Organization and Reporting Framework We have three reportable segments: Lending, Technology Platform and Financial Services. Each of our reportable segments is a strategic business unit that serves specific needs of our members based on the products and services provided. The segments are based on the manner in which management views the financial performance of the business. The reportable segments also reflect our organizational structure. Each segment has a segment manager who reports directly to the Chief Operating Decision Maker (“CODM”). The CODM has ultimate authority and responsibility over resource allocation decisions and performance assessment. The operations of acquired businesses have been integrated into, or managed as part of, our existing reportable segments. Activities that are not part of a reportable segment, such as management of our corporate investment portfolio and asset/liability management by our centralized treasury function (as further discussed below), are included in the Corporate/Other non-reportable segment. Contribution profit (loss) is the primary measure of segment profit and loss reviewed by the CODM and is intended to measure the direct profitability of each segment in the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources. Contribution profit (loss) is defined as total net revenue for each reportable segment less: • fair value changes in servicing rights and residual interests classified as debt that are attributable to assumption changes, which impact the contribution profit within the Lending segment. These fair value changes are non-cash in nature and are not realized in the period; therefore, they do not impact the amounts available to fund our operations; and • expenses directly attributable to the corresponding reportable segment. Directly attributable expenses primarily include compensation and benefits and sales and marketing, and vary based on the amount of activity within each segment. Directly attributable expenses also include loan origination and servicing expenses, professional services, product fulfillment, lead generation and occupancy-related costs. Expenses are attributed to the reportable segments using either direct costs of the segment or labor costs that can be attributed based upon the allocation of employee time for individual products. We apply a funds transfer pricing (“FTP”) framework to attribute net interest income to our business segments based on their usage and/or provision of funding. The primary objective of the FTP framework is to transfer interest rate risk from the business segments by providing matched duration of funding of assets and liabilities to allocate interest income and interest expense to each segment. Therefore, the financial impact, management and reporting of interest rate risk is centralized in Corporate/Other, where it is monitored and managed. The application of the FTP framework impacts the measure of net interest income and, thereby, total net revenue and contribution profit (loss) for our Lending and Financial Services segments, as well as the total net revenue of Corporate/Other, but has no impact on our consolidated results of operations. Assets are not allocated to reportable segments, as our CODM does not evaluate reportable segments using discrete asset information. Segment Information Lending. The Lending segment includes our personal loan, student loan and home loan products and the related servicing activities. Revenues in the Lending segment are driven by changes in the fair value of our whole loans and securitization interests (inclusive of our economic hedging activities), gains or losses recognized on transfers that meet the true sale requirements, and our servicing-related activities, which mainly consist of servicing fees and the changes in our servicing assets over time. In our Lending segment, we also earn the difference between interest income earned on our loans and interest expense, as determined using the FTP framework. Our CODM considers net interest income in addition to contribution profit in evaluating the performance of our Lending segment and making resource allocation decisions. Therefore, we present interest income net of interest expense. Technology Platform. The Technology Platform segment includes: (i) technology products and solutions revenue, which is primarily related to our platform-as-a-service through Galileo, which provides the infrastructure to facilitate core client-facing and back-end capabilities, such as account setup, account funding, direct deposit, authorizations and processing, payments functionality and check account balance features, and (ii) beginning in March 2022, revenue earned by Technisys, which expanded our segment to include a cloud-native digital and core banking platform offering and which results in the sale of software licenses and the provision of related technology solutions. See Note 2. Business Combinations for additional information on the Technisys Merger. Financial Services. The Financial Services segment primarily includes our SoFi Money product (primarily inclusive of checking and savings accounts, as well as cash management accounts), SoFi Invest product, SoFi Credit Card product, SoFi Relay personal finance management product and other financial services, such as lead generation and content for other financial services institutions and our members. Checking and savings provides members a digital banking experience that offers no account fees, 2-day early paycheck and a competitive annual percentage yield. SoFi Money cash management provides members a digital cash management experience. Effective June 5, 2022, our cash management accounts no longer earn interest, as we implemented our plan to build new features only for checking and savings and reduce support of our cash management accounts. SoFi Invest provides investment features and financial planning services that we offer to our members. Revenues in the Financial Services segment include interest income earned and interest expense incurred under the FTP framework, interchange fees on our member debit and credit transactions and digital assets transaction fees, and fees related to pay for order flow and share lending arrangements in SoFi Invest. We also earn referral fees in connection with referral activity we facilitate through our platform. Our CODM considers net interest income in addition to contribution profit (loss) in evaluating the performance of our Financial Services segment and making resource allocation decisions. Under the FTP framework, the Financial Services segment earns interest income that is reflective of an FTP credit for deposits provided to the overall business, as well as incurs interest expense that is reflective of an FTP charge related to the use of funding for SoFi Credit Card. Corporate/Other. Non-segment operations are classified as Corporate/Other, which includes net revenues associated with corporate functions that are not directly related to a reportable segment. Net interest income (expense) within Corporate/Other reflects the residual impact from FTP charges and FTP credits allocated to our reportable segments under our FTP framework. These non-segment net revenue (loss) also include interest income earned on corporate cash balances, nonrecurring income on certain investments from available cash on hand, such as our investments in AFS debt securities (which investments are not interconnected with our core business lines and, thereby, reportable segments), and interest expense on other corporate borrowings, such as our revolving credit facility and the amortization of debt issuance costs and original issue discount on our convertible notes. Segment Results The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment: Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Three Months Ended March 31, 2023 Net revenue Net interest income (expense) $ 201,047 $ — $ 58,037 $ 259,084 $ (23,074) $ 236,010 Noninterest income (expense) (2) 136,034 77,887 23,064 236,985 (837) 236,148 Total net revenue (loss) 337,081 77,887 81,101 496,069 (23,911) 472,158 Servicing rights – change in valuation inputs or assumptions (3) (12,084) — — (12,084) Residual interests classified as debt – change in valuation inputs or assumptions (4) 89 — — 89 Directly attributable expenses (115,188) (63,030) (105,336) (283,554) Contribution profit (loss) $ 209,898 $ 14,857 $ (24,235) $ 200,520 Three Months Ended March 31, 2022 Net revenue Net interest income (expense) $ 94,354 $ — $ 5,882 $ 100,236 $ (5,303) $ 94,933 Noninterest income (expense) (2) 158,635 60,805 17,661 237,101 (1,690) 235,411 Total net revenue (loss) $ 252,989 $ 60,805 $ 23,543 $ 337,337 $ (6,993) $ 330,344 Servicing rights – change in valuation inputs or assumptions (3) (11,580) — — (11,580) Residual interests classified as debt – change in valuation inputs or assumptions (4) 2,963 — — 2,963 Directly attributable expenses (111,721) (42,550) (73,058) (227,329) Contribution profit (loss) $ 132,651 $ 18,255 $ (49,515) $ 101,391 ____________________ (1) Within the Technology Platform segment, intercompany fees were $3,741 and $770 for the three months ended March 31, 2023 and 2022, respectively. The equal and offsetting intercompany expenses are reflected within the Financial Services and Technology Platform segment directly attributable expenses. The intercompany revenues and expenses are eliminated in consolidation. The revenues are eliminated within Corporate/Other and the expenses are adjusted in our reconciliation of directly attributable expenses below. (2) Refer to Note 3. Revenue for a reconciliation of revenue from contracts with customers to total noninterest income (expense). (3) Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment, default rates and discount rates. This non-cash change, which is recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income (loss), is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. (4) Reflects changes in fair value inputs and assumptions, including conditional prepayment, default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income (loss). The fair value change attributable to assumption changes has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to securitization collateral cash flows), or the general operations of our business. As such, this non-cash change in fair value during the period is adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. No single customer accounted for more than 10% of our consolidated revenues for the periods presented. The following table reconciles reportable segments total contribution profit to loss before income taxes. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources. Three Months Ended March 31, 2023 2022 Reportable segments total contribution profit $ 200,520 $ 101,391 Corporate/Other total net loss (23,911) (6,993) Intercompany expenses 3,741 770 Servicing rights – change in valuation inputs or assumptions 12,084 11,580 Residual interests classified as debt – change in valuation inputs or assumptions (89) (2,963) Expenses not allocated to segments: Share-based compensation expense (64,226) (77,021) Employee-related costs (1) (61,814) (42,690) Depreciation and amortization expense (45,321) (30,698) Other corporate and unallocated expenses (2) (57,043) (62,981) Loss before income taxes $ (36,059) $ (109,605) __________________ (1) Includes compensation, benefits, restructuring charges, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments. (2) Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing and advertising costs, tools and subscription costs, professional services costs, corporate and FDIC insurance costs and transaction-related expenses. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 3, 2023, the Company acquired all of the outstanding equity interests in Wyndham Capital Mortgage (“Wyndham”) for cash consideration. The acquisition will be accounted for as a business combination and is not expected to be a significant acquisition under GAAP. Wyndham is a leading fintech mortgage lender. With the acquisition of Wyndham, we broadened our suite of home loan products and now manage the technology for a digitized mortgage experience. On April 28, 2023, the Company entered into an Amended and Restated Revolving Credit Agreement (“Amended and Restated Credit Agreement”), which amended and restated the Revolving Credit Agreement (“Original Credit Agreement”), dated as of September 27, 2018, among Social Finance, Inc., the lenders party thereto, the issuing banks party thereto and Goldman Sachs Bank USA, as administrative agent. The Amended and Restated Credit Agreement amended and restated the Original Credit Agreement to, among other things, (i) increase the initial aggregate commitment to $645 million, (ii) extend the maturity date of the revolving credit facility to the date that is five years after the closing date, (iii) change the borrower entity under the revolving credit facility to SoFi Technologies, Inc., (iv) replace LIBOR as the term benchmark rate applicable to revolving loans denominated in U.S. dollars with a secured overnight financing benchmark rate equal to Term SOFR plus a credit spread adjustment of 0.10%, and (v) effect certain other changes. The Amended and Restated Credit Agreement also contains financial covenants that require the Company to maintain a certain amount of unrestricted cash and cash equivalents and to meet certain risk-based capital ratios and a leverage ratio. |
Organization, Summary of Sign_2
Organization, Summary of Significant Accounting Policies and New Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The condensed consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and certain consolidated VIEs. All intercompany accounts were eliminated in consolidation. The condensed consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the SEC. We condensed or omitted certain notes and other financial information from the interim financial statements presented herein. These condensed consolidated financial statements should be read in conjunction with the consolidated statements included in our annual filing on Form 10-K filed with the SEC on March 1, 2023 (“Form 10-K”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the Company’s financial condition and results of operations and cash flows for the interim periods presented. The results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year ending December 31, 2023. |
Use of Judgments, Assumptions and Estimates | The preparation of our condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the reported amounts of assets, liabilities, revenue, expenses, and the disclosures of contingent assets and liabilities. These estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions, and the differences could be material. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances. These assumptions and estimates include, but are not limited to, the following: (i) fair value measurements; (ii) business combinations; and (iii) goodwill. |
Restructuring | During the three months ended March 31, 2023, we recognized restructuring charges of $4,953 within noninterest expense in the condensed consolidated statements of operations and comprehensive income (loss) associated with a small reduction in headcount in the Technology Platform segment, which primarily included employee-related wages, benefits and severance. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The ASU addresses two topics: (i) troubled debt restructuring (“TDR”) by creditors, and (ii) vintage disclosures for gross write offs. Under the TDR provisions, the ASU eliminates the recognition and measurement guidance under ASC 310-40, Receivables — Troubled Debt Restructurings by Creditors, and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan, consistent with the accounting for other loan modifications. Additionally, the ASU enhances existing disclosure requirements around TDRs and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Under the vintage disclosure provisions, the ASU requires the entity to disclose current period gross write offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20, Financial Instruments — Credit Losses — Measured at Amortized Cost . The standard should be applied prospectively; however, for the TDR provisions, an entity has the option to apply a modified retrospective transition method. We adopted the standard effective January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements. |
Revenue Recognition | In each of our revenue arrangements, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects our expected consideration in exchange for those goods or services. Our arrangements are discussed in our Annual Report on Form 10-K, with notable updates provided herein. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Pro Forma Information | The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations as if the business combination had occurred on January 1, 2021: Three Months Ended March 31, 2022 Total net revenue $ 342,109 Net loss (103,983) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues | The table below presents revenue from contracts with customers disaggregated by type of service, which best depicts how the revenue and cash flows are affected by economic factors, and by the reportable segment to which each revenue stream relates, as well as a reconciliation of total revenue from contracts with customers to total noninterest income . Revenue from contracts with customers is presented within noninterest income—technology products and solutions and noninterest income—other in the condensed consolidated statements of operations and comprehensive income (loss). There were no revenues from contracts with customers attributable to our Lending segment for the periods presented. Three Months Ended March 31, 2023 2022 Financial Services Referrals $ 9,626 $ 7,768 Interchange 7,269 4,286 Brokerage 4,878 4,730 Other (1) 487 203 Total financial services 22,260 16,987 Technology Platform (2) Technology services 72,129 59,157 Software licenses 672 700 Other (1) 421 178 Total technology platform 73,222 60,035 Total revenue from contracts with customers $ 95,482 $ 77,022 Other Sources of Revenue Loan origination and sales $ 126,511 $ 157,704 Securitizations (3,177) (11,281) Servicing 12,742 12,236 Other 4,590 (270) Total other sources of revenue $ 140,666 $ 158,389 Total noninterest income $ 236,148 $ 235,411 _____________________ (1) In Financial Services, includes revenues from equity capital markets services and enterprise services. In Technology Platform, includes payment network fees for serving as a transaction card program manager for enterprise customers that are the program marketers for separate card programs. (2) Related to these technology products and solutions arrangements, we had deferred revenues of $8,526 and $10,028 as of March 31, 2023 and December 31, 2022, respectively, which are presented within accounts payable, accruals and other liabilities in the condensed consolidated balance sheets. During the three months ended March 31, 2023 and 2022, we recognized revenue of $2,340 and $785, respectively, associated with deferred revenues within noninterest income—technology products and solutions |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans | Below is a disaggregated presentation of our loans, inclusive of fair market value adjustments and accrued interest income and net of the allowance for credit losses, as applicable: March 31, December 31, Loans held for sale Personal loans (1) $ 10,536,999 $ 8,610,434 Student loans (2) 5,240,059 4,877,177 Home loans 81,047 69,463 Total loans held for sale, at fair value 15,858,105 13,557,074 Loans held for investment (3) Credit card (4) 216,914 209,164 Commercial and consumer banking: Commercial real estate 101,453 88,652 Commercial and industrial 6,659 7,179 Residential real estate and other consumer 3,003 2,962 Total commercial and consumer banking 111,115 98,793 Total loans held for investment, at amortized cost 328,029 307,957 Total loans $ 16,186,134 $ 13,865,031 _____________________ (1) Includes $962,476 and $663,004 of personal loans in consolidated VIEs as of March 31, 2023 and December 31, 2022, respectively. (2) Includes $201,988 and $268,697 of student loans in consolidated VIEs as of March 31, 2023 and December 31, 2022, respectively. (3) See Note 5. Allowance for Credit Losses for additional information on our loans at amortized cost as it pertains to the allowance for credit losses. (4) For credit cards, loan origination costs are expensed as incurred primarily within noninterest expense—sales and marketing in the condensed consolidated statements of operations and comprehensive income (loss) . The following table summarizes the aggregate fair value of our loans held for sale, for which we elected the fair value option and are, therefore, measured at fair value on a recurring basis. See Note 12. Fair Value Measurements for the assumptions used in our fair value model. Personal Loans Student Loans Home Loans Total March 31, 2023 Unpaid principal $ 10,039,769 $ 5,086,953 $ 89,782 $ 15,216,504 Accumulated interest 69,049 20,787 162 89,998 Cumulative fair value adjustments (1) 428,181 132,319 (8,897) 551,603 Total fair value of loans (2) $ 10,536,999 $ 5,240,059 $ 81,047 $ 15,858,105 December 31, 2022 Unpaid principal $ 8,283,400 $ 4,794,517 $ 77,705 $ 13,155,622 Accumulated interest 55,673 19,433 151 75,257 Cumulative fair value adjustments (1) 271,361 63,227 (8,393) 326,195 Total fair value of loans (2) $ 8,610,434 $ 4,877,177 $ 69,463 $ 13,557,074 __________________ (1) The increase in cumulative fair value adjustments for personal loans during the three months ended March 31, 2023 was primarily attributable to higher origination volume and higher coupon rates, while the increase for student loans was primarily attributable to lower prepayment assumptions and higher coupon rates. (2) Each component of the fair value of loans is impacted by charge-offs during the period. Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due. The following table summarizes the aggregate fair value of loans 90 days or more delinquent. As delinquent personal loans and student loans are charged off after 120 days of delinquency, amounts presented below represent the fair value of loans that are 90 to 120 days delinquent. There were no home loans that were 90 days or more delinquent as of the dates presented. Personal Loans Student Loans Total March 31, 2023 Unpaid principal balance $ 37,754 $ 5,968 $ 43,722 Accumulated interest 1,731 306 2,037 Cumulative fair value adjustments (1) (34,219) (3,283) (37,502) Fair value of loans 90 days or more delinquent $ 5,266 $ 2,991 $ 8,257 December 31, 2022 Unpaid principal balance $ 27,989 $ 6,435 $ 34,424 Accumulated interest 1,207 304 1,511 Cumulative fair value adjustments (1) (25,022) (3,332) (28,354) Fair value of loans 90 days or more delinquent $ 4,174 $ 3,407 $ 7,581 __________________ (1) Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due. |
Schedule of Whole Loan Sales | The following table summarizes our whole loan sales: Three Months Ended March 31, 2023 2022 Personal loans Fair value of consideration received: Cash $ — $ 1,018,689 Servicing assets recognized — 6,424 Repurchase liabilities recognized — (2,298) Total consideration received — 1,022,815 Aggregate unpaid principal balance and accrued interest of loans sold — 981,855 Gain from loan sales $ — $ 40,960 Student loans Fair value of consideration received: Cash $ — $ 548,911 Servicing assets recognized — 5,824 Repurchase liabilities recognized — (80) Total consideration — 554,655 Aggregate unpaid principal balance and accrued interest of loans sold — 546,287 Gain from loan sales $ — $ 8,368 Home loans Fair value of consideration received: Cash $ 77,819 $ 359,700 Servicing assets recognized 954 4,238 Repurchase liabilities recognized (96) (420) Total consideration 78,677 363,518 Aggregate unpaid principal balance and accrued interest of loans sold 77,976 365,560 Gain (loss) from loan sales $ 701 $ (2,042) |
Schedule of Transferred Loans with Continued Involvement but Not Recorded on Consolidated Balance Sheet and Cash Flows Received | The following table presents information about the unpaid principal balances of transferred loans that are not recorded in our condensed consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements: Personal Loans Student Loans Home Loans Total March 31, 2023 Loans in delinquency $ 130,475 $ 105,250 $ 15,677 $ 251,402 Total loans serviced (1) 2,884,653 7,173,819 5,118,433 15,176,905 December 31, 2022 Loans in delinquency $ 136,179 $ 115,818 $ 16,510 $ 268,507 Total loans serviced (1) 3,402,795 7,586,031 5,134,306 16,123,132 _____________________ (1) Total loans serviced includes loans in delinquency, as well as loans in repayment, loans in-school/grace period/deferment (related to student loans), and loans in forbearance. The vast majority of total loans serviced represent loans in repayment as of the dates indicated. The following table presents additional information about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement: Three Months Ended March 31, 2023 2022 Personal loans Servicing fees collected $ 7,193 $ 8,637 Charge-offs, net of recoveries (1) 57,442 17,138 Student loans Servicing fees collected 9,190 9,168 Charge-offs, net of recoveries (1) 9,153 8,220 Home loans Servicing fees collected 3,160 2,636 Charge-offs, net of recoveries — — Total Servicing fees collected $ 19,543 $ 20,441 Charge-offs, net of recoveries (1) 66,595 25,358 _____________________ (1) Personal loan and student loan charge-offs, net of recoveries, are impacted by the timing of charge-off sales performed on behalf of the purchasers of our loans, which lower the net amount disclosed. |
Schedule of Aging Analysis for Credit Card Loans | The following table presents the amortized cost basis of our credit card and commercial and consumer banking portfolios (excluding accrued interest and before the allowance for credit losses) by either current status or delinquency status: Delinquent Loans Current 30–59 Days 60–89 Days ≥ 90 Days (1) Total Delinquent Loans Total Loans (2) March 31, 2023 Credit card $ 231,057 $ 4,267 $ 3,332 $ 10,833 $ 18,432 $ 249,489 Commercial and consumer banking: Commercial real estate 102,390 — — — — 102,390 Commercial and industrial 6,868 4 337 — 341 7,209 Residential real estate and other consumer (3) 3,001 — — — — 3,001 Total commercial and consumer banking 112,259 4 337 — 341 112,600 Total loans $ 343,316 $ 4,271 $ 3,669 $ 10,833 $ 18,773 $ 362,089 December 31, 2022 Credit card $ 225,165 $ 4,670 $ 3,626 $ 10,498 $ 18,794 $ 243,959 Commercial and consumer banking: Commercial real estate 89,544 — — — — 89,544 Commercial and industrial 7,636 — 1 — 1 7,637 Residential real estate and other consumer (3) 2,966 — — — — 2,966 Total commercial and consumer banking 100,146 — 1 — 1 100,147 Total loans $ 325,311 $ 4,670 $ 3,627 $ 10,498 $ 18,795 $ 344,106 _______________ (1) All of the credit cards ≥ 90 days past due continued to accrue interest. As of the dates indicated, there were no credit cards on nonaccrual status. As of the dates indicated, commercial and consumer banking loans on nonaccrual status were immaterial, and there were no loans that were 90 days or more past due. (2) For credit card, the balance is presented before allowance for credit losses of $37,089 and $39,110 as of March 31, 2023 and December 31, 2022, respectively, and accrued interest of $4,514 and $4,315, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,848 and $1,678, respectively, and accrued interest of $363 and $324, respectively. (3) Primarily includes residential real estate loans acquired in the Bank Merger, for which we did not elect the fair value option. |
Schedule of Internal Risk Tier Categories | The following table presents the amortized cost basis of our credit card portfolio (excluding accrued interest and before the allowance for credit losses) based on FICO scores, which are obtained at origination of the account and are refreshed monthly thereafter. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data. FICO March 31, 2023 December 31, 2022 ≥ 800 $ 16,835 $ 14,421 780 – 799 11,895 11,327 760 – 779 13,394 12,179 740 – 759 15,373 14,501 720 – 739 19,966 19,343 700 – 719 26,790 26,239 680 – 699 31,887 31,543 660 – 679 31,779 31,958 640 – 659 24,765 25,959 620 – 639 15,036 15,566 600 – 619 9,215 8,968 ≤ 599 32,554 31,955 Total credit card $ 249,489 $ 243,959 The following table presents the amortized cost basis of our commercial and consumer banking portfolio (excluding accrued interest and before the allowance for credit losses) by origination year and credit quality indicator: Term Loans by Origination Year March 31, 2023 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Commercial real estate Pass $ 13,011 $ 34,387 $ 5,725 $ 6,278 $ 10,178 $ 19,081 $ 88,660 $ 196 Watch 1,247 4,643 1,676 — 223 2,808 10,597 — Special mention — — — — 673 1,596 2,269 — Substandard — — — — — 668 668 — Total commercial real estate 14,258 39,030 7,401 6,278 11,074 24,153 102,194 196 Commercial and industrial Pass 30 — — 75 — 5,430 5,535 215 Watch — — — — 127 33 160 24 Substandard — — — — — 1,275 1,275 — Total commercial and industrial 30 — — 75 127 6,738 6,970 239 Residential real estate and other consumer Pass — — — — — 2,894 2,894 65 Watch — — — — — 41 41 1 Total residential real estate and other consumer — — — — — 2,935 2,935 66 Total commercial and consumer banking $ 14,288 $ 39,030 $ 7,401 $ 6,353 $ 11,201 $ 33,826 $ 112,099 $ 501 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Allowance for Credit Losses, Accounts Receivable | The following table presents changes in our allowance for credit losses: Credit Card (1) Commercial and Consumer Banking (1) Accounts Receivable (1) Three Months Ended March 31, 2023 Balance at December 31, 2022 $ 39,110 $ 1,678 $ 2,785 Provision for credit losses (2) 8,237 170 (854) Write-offs charged against the allowance (3) (10,258) — (286) Balance at March 31, 2023 $ 37,089 $ 1,848 $ 1,645 Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 7,037 $ — $ 2,292 Provision for credit losses (2) 11,977 984 (591) Allowance for PCD loans (4) — 382 — Write-offs charged against the allowance (2,514) — (49) Balance at March 31, 2022 $ 16,500 $ 1,366 $ 1,652 _____________________ (1) Credit cards and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans held for investment in the condensed consolidated balance sheets. Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the condensed consolidated balance sheets. (2) The provision for credit losses on credit cards and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses in the condensed consolidated statements of operations and comprehensive income (loss) . There were immaterial recoveries of amounts previously reserved related to credit cards and commercial and consumer banking loans during the three months ended March 31, 2023 and 2022. The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2023 and 2022, recoveries of amounts previously reserved related to accounts receivable were $1,161 and $1,392, respectively. (3) The increase in credit card write-offs charged against the allowance during the three months ended March 31, 2023 relative to the corresponding period in 2022 was primarily related to our maturing portfolio. (4) In connection with the Bank Merger, we obtained purchased credit deteriorated (“PCD”) loans, for which we measured an allowance, with a corresponding increase to the amortized cost basis as of the acquisition date. Therefore, recognition of the initial allowance for credit losses did not impact earnings. |
Schedule of Allowance for Credit Losses, Credit Card Loans | The following table presents changes in our allowance for credit losses: Credit Card (1) Commercial and Consumer Banking (1) Accounts Receivable (1) Three Months Ended March 31, 2023 Balance at December 31, 2022 $ 39,110 $ 1,678 $ 2,785 Provision for credit losses (2) 8,237 170 (854) Write-offs charged against the allowance (3) (10,258) — (286) Balance at March 31, 2023 $ 37,089 $ 1,848 $ 1,645 Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 7,037 $ — $ 2,292 Provision for credit losses (2) 11,977 984 (591) Allowance for PCD loans (4) — 382 — Write-offs charged against the allowance (2,514) — (49) Balance at March 31, 2022 $ 16,500 $ 1,366 $ 1,652 _____________________ (1) Credit cards and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans held for investment in the condensed consolidated balance sheets. Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the condensed consolidated balance sheets. (2) The provision for credit losses on credit cards and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses in the condensed consolidated statements of operations and comprehensive income (loss) . There were immaterial recoveries of amounts previously reserved related to credit cards and commercial and consumer banking loans during the three months ended March 31, 2023 and 2022. The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2023 and 2022, recoveries of amounts previously reserved related to accounts receivable were $1,161 and $1,392, respectively. (3) The increase in credit card write-offs charged against the allowance during the three months ended March 31, 2023 relative to the corresponding period in 2022 was primarily related to our maturing portfolio. (4) In connection with the Bank Merger, we obtained purchased credit deteriorated (“PCD”) loans, for which we measured an allowance, with a corresponding increase to the amortized cost basis as of the acquisition date. Therefore, recognition of the initial allowance for credit losses did not impact earnings. |
Investments Securities (Tables)
Investments Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments in Debt Securities | The following table presents our investments in available-for-sale (“AFS”) debt securities: Amortized Cost Accrued Interest Gross Unrealized Gains Gross Unrealized Losses (1) Fair Value March 31, 2023 U.S. Treasury securities $ 101,944 $ 248 $ — $ (2,273) $ 99,919 Multinational securities (2) 19,596 75 — (504) 19,167 Corporate bonds 38,771 211 — (2,112) 36,870 Agency mortgage-backed securities 8,648 21 — (871) 7,798 Other asset-backed securities 9,542 5 — (417) 9,130 Other (3) 2,128 10 — (186) 1,952 Total investments in AFS debt securities $ 180,629 $ 570 $ — $ (6,363) $ 174,836 December 31, 2022 U.S. Treasury securities $ 121,282 $ 217 $ — $ (3,510) $ 117,989 Multinational securities (2) 19,658 109 — (724) 19,043 Corporate bonds 41,890 257 — (2,644) 39,503 Agency mortgage-backed securities 8,899 22 — (991) 7,930 Other asset-backed securities 9,556 5 — (514) 9,047 Other (3) 2,133 21 — (228) 1,926 Total investments in AFS debt securities $ 203,418 $ 631 $ — $ (8,611) $ 195,438 _____________________ (1) As of March 31, 2023 and December 31, 2022, we concluded that there was no credit loss attributable to securities in unrealized loss positions. Additionally, we do not intend to sell the securities in loss positions nor is it more likely than not that we will be required to sell the securities prior to recovery of the amortized cost basis. (2) Includes sovereign foreign and supranational bonds. (3) Includes state and city municipal bond securities. |
Schedule of Investment Securities in Gross Unrealized Loss Position | The following table presents information about our investments in AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2023 and December 31, 2022. Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses March 31, 2023 U.S. Treasury securities $ 7,705 $ (196) $ 92,214 $ (2,077) $ 99,919 $ (2,273) Multinational securities — — 19,167 (504) 19,167 (504) Corporate bonds — — 36,870 (2,112) 36,870 (2,112) Agency mortgage-backed securities — — 7,798 (871) 7,798 (871) Other asset-backed securities — — 9,130 (417) 9,130 (417) Other — — 1,952 (186) 1,952 (186) Total investments in AFS debt securities $ 7,705 $ (196) $ 167,131 $ (6,167) $ 174,836 $ (6,363) Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2022 U.S. Treasury securities $ 27,759 $ (1,171) $ 90,230 $ (2,339) $ 117,989 $ (3,510) Multinational securities — — 19,043 (724) 19,043 (724) Corporate bonds 4,480 (313) 35,023 (2,331) 39,503 (2,644) Agency mortgage-backed securities 6,448 (814) 1,482 (177) 7,930 (991) Other asset-backed securities — — 9,047 (514) 9,047 (514) Other 745 (200) 1,181 (28) 1,926 (228) Total investments in AFS debt securities $ 39,432 $ (2,498) $ 156,006 $ (6,113) $ 195,438 $ (8,611) |
Schedule of Investments by Contractual Maturity | The following table presents the amortized cost and fair value of our investments in AFS debt securities by contractual maturity: Due Within One Year Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Total March 31, 2023 Investments in AFS debt securities—Amortized cost: U.S. Treasury securities $ 72,228 $ 29,716 $ — $ — $ 101,944 Multinational securities 19,596 — — — 19,596 Corporate bonds 10,192 25,248 3,331 — 38,771 Agency mortgage-backed securities — 180 804 7,664 8,648 Other asset-backed securities — 7,599 1,943 — 9,542 Other 1,191 — — 937 2,128 Total investments in AFS debt securities $ 103,207 $ 62,743 $ 6,078 $ 8,601 $ 180,629 Weighted average yield for investments in AFS debt securities (1) 4.69 % 5.70 % 0.01 % 9.04 % 5.10 % Investments in AFS debt securities—Fair value (2) : U.S. Treasury securities $ 71,098 $ 28,573 $ — $ — $ 99,671 Multinational securities 19,092 — — — 19,092 Corporate bonds 9,827 23,843 2,989 — 36,659 Agency mortgage-backed securities — 170 736 6,871 7,777 Other asset-backed securities — 7,252 1,873 — 9,125 Other 1,173 — — 769 1,942 Total investments in AFS debt securities $ 101,190 $ 59,838 $ 5,598 $ 7,640 $ 174,266 _____________________ (1) The weighted average yield represents the effective yield for the investment securities and is computed based on the amortized cost of each security. (2) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $570 as of March 31, 2023. |
Schedule of Consolidated and Nonconsolidated VIEs | The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs, which are presented within investment securities in the condensed consolidated balance sheets: March 31, December 31, Personal loans $ 14,892 $ 20,172 Student loans 170,340 181,159 Securitization investments $ 185,232 $ 201,331 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Interest-Bearing Deposits | The following table presents a detail of interest-bearing deposits: March 31, 2023 December 31, 2022 Savings deposits $ 6,361,587 $ 4,383,953 Demand deposits (1) 2,095,440 1,912,452 Time deposits (1)(2) 1,559,377 969,387 Total interest-bearing deposits $ 10,016,404 $ 7,265,792 _____________________ (1) As of March 31, 2023 and December 31, 2022, includes brokered deposits of $1,620,767 and $1,026,400, respectively, of which $1,526,195 and $940,000, respectively, are time deposits and $94,572 and $86,400, respectively, are demand deposits. (2) As of March 31, 2023 and December 31, 2022, the amount of time deposits that exceeded the insured limit (referred to as “uninsured deposits”) totaled $23,317 and $20,842, respectively. |
Schedule of Future Maturities of Time Deposits | As of March 31, 2023, future maturities of our total time deposits were as follows: Remainder of 2023 $ 1,201,290 2024 357,045 2025 550 2026 289 2027 — Thereafter 203 Total $ 1,559,377 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the components of our debt: Borrowing Description March 31, 2023 December 31, 2022 Total Collateral (1) Stated Interest Rate (2) Termination/ Maturity (3) Total Capacity Total Outstanding (4) Total Outstanding Debt Facilities Personal loan warehouse facilities $ 1,845,226 5.00% – 6.71% June 2023 – January 2032 $ 4,100,000 $ 1,539,865 $ 1,452,085 Student loan warehouse facilities 2,737,906 5.42% – 6.66% April 2023 – June 2025 4,180,000 1,868,019 1,504,926 Credit card warehouse facility — 6.26% August 2024 100,000 — — Risk retention warehouse facilities (5) 117,157 6.37% – 7.19% January 2024 – October 2027 200,000 95,196 101,964 Revolving credit facility (6) 5.86% September 2023 560,000 486,000 486,000 Other Debt Convertible senior notes (7) —% October 2026 1,200,000 1,200,000 Other financing (8) 28,735 23,955 — — Securitizations Personal loan securitizations 955,674 0.49% – 6.21% September 2030 – May 2031 738,588 529,132 Student loan securitizations 210,040 1.83% – 9.29% April 2023 – July 2040 231,927 246,856 Total, before unamortized debt issuance costs, premiums and discounts $ 6,159,595 $ 5,520,963 Less: unamortized debt issuance costs, premiums and discounts (34,094) (35,081) Total debt $ 6,125,501 $ 5,485,882 _________________ (1) As of March 31, 2023, represents the total of the unpaid principal balances within each debt category, with the exception of the risk retention warehouse facilities, which include securitization-related investments carried at fair value. In addition, certain securitization interests that eliminate in consolidation are pledged to risk retention warehouse facilities. Collateral balances relative to debt balances may vary period to period due to the timing of the next scheduled payment to the warehouse facility. (2) For variable-rate debt, the ranges of stated interest rates are based on the interest rates in effect as of March 31, 2023. The interest on our variable-rate debt is typically designed as a reference rate plus a spread. Reference rates as of March 31, 2023 included one-month London Inter-Bank Offered Rate (“LIBOR”), three-month LIBOR, overnight Secured Overnight Financing Rate (“SOFR”), one-month SOFR, three-month SOFR, prime rate and commercial paper rates determined by the facility lenders. As debt arrangements are renewed, the reference rate and/or spread are subject to change. Unused commitment fees ranging from 0 to 65 basis points (“bps”) on our various warehouse facilities are recognized within noninterest expense—general and administrative in our condensed consolidated statements of operations and comprehensive income (loss). (3) For securitization debt, the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts. Our maturity date represents the legal maturity of the last class of maturing notes. Securitization debt matures as loan collateral payments are made. (4) There were no debt discounts or premiums issued during the three months ended March 31, 2023. (5) For risk retention warehouse facilities, we only state capacity amounts for facilities wherein we can pledge additional asset-backed bonds and residual investments as of the balance sheet date. (6) As of March 31, 2023, $6.0 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure a letter of credit. Refer to our letter of credit disclosures in Note 15. Commitments, Guarantees, Concentrations and Contingencies for more details. Additionally, the interest rate presented is the interest rate on standard withdrawals on our revolving credit facility, while same-day withdrawals incur interest based on prime rate. In April 2023, the Company amended and restated the terms of the revolving credit facility. See Note 18. Subsequent Events to the Notes to Condensed Consolidated Financial Statements for additional information. (7) The original issue discount and debt issuance costs related to the convertible senior notes are amortized into interest expense—corporate borrowings in the condensed consolidated statements of operations and comprehensive income (loss) using the effective interest method over the contractual term of the notes. For the three months ended March 31, 2023 and 2022, total interest expense on the convertible notes was $1,272 and $1,267, respectively, related to amortization of debt discount and issuance costs, and the effective interest rate was 0.11% and 0.11%, respectively. As of March 31, 2023 and December 31, 2022, unamortized debt discount and issuance costs were $18.1 million and $19.4 million, respectively, and the net carrying amount was $1.18 billion and $1.18 billion, respectively. (8) Includes $28.7 million of loans pledged as collateral to secure $19.0 million of available borrowing capacity with the Federal Home Loan Bank (“FHLB”), of which $13.7 million was not available as it was utilized to secure letters of credit. Refer to our letter of credit disclosures in Note 15. Commitments, Guarantees, Concentrations and Contingencies for more details. Also includes unsecured available borrowing capacity of $5.0 million with correspondent banks. |
Schedule of Maturities of Borrowings | Future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows: March 31, 2023 Remainder of 2023 $ 486,000 2024 — 2025 — 2026 1,200,000 2027 — Thereafter — Total $ 1,686,000 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock, Reserved for Future Issuance | The Company reserved the following common stock for future issuance: March 31, December 31, Outstanding stock options, restricted stock units and performance stock units 122,782,283 107,851,565 Outstanding common stock warrants 12,170,990 12,170,990 Conversion of convertible notes (1) 53,538,000 53,538,000 Possible future issuance under stock plans 49,923,057 26,434,957 Total common stock reserved for future issuance 238,414,330 199,995,512 ____________________ |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the rollforward of AOCI, inclusive of the changes in the components of other comprehensive income (loss): AFS Debt Securities Foreign Currency Translation Adjustments Total Three Months Ended March 31, 2023 AOCI, beginning balance $ (8,611) $ 315 $ (8,296) Other comprehensive income (loss) before reclassifications (1) 2,076 (293) 1,783 Amounts reclassified from AOCI into earnings 172 — 172 Net current-period other comprehensive income (loss) (2) 2,248 (293) 1,955 AOCI, ending balance $ (6,363) $ 22 $ (6,341) Three Months Ended March 31, 2022 AOCI, beginning balance $ (1,351) $ (120) $ (1,471) Other comprehensive loss before reclassifications (1) (4,616) (38) (4,654) Amounts reclassified from AOCI into earnings 161 — 161 Net current-period other comprehensive loss (2) (4,455) (38) (4,493) AOCI, ending balance $ (5,806) $ (158) $ (5,964) ____________________ (1) Gross realized gains and losses from sales of our investments in AFS debt securities that were reclassified from AOCI to earnings are recorded within noninterest income—other in the condensed consolidated statements of operations and comprehensive income (loss). There were no reclassifications related to foreign currency translation adjustments during the three months ended March 31, 2023 and 2022. (2) There were no material tax impacts during the periods presented due to reserves against deferred tax assets in jurisdictions where other comprehensive loss activity was generated. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the gains (losses) recognized on our derivative instruments: Three Months Ended March 31, 2023 2022 Interest rate swaps (1) $ (28,456) $ 134,514 Interest rate caps (1) (1,695) 2,623 Home loan pipeline hedges (1) (1,077) 23,470 Derivative contracts to manage future loan sale execution risk (31,228) 160,607 Interest rate swaps (2) (1,108) 6,319 Interest rate lock commitments (“IRLCs”) (1) 418 (6,798) Interest rate caps (1) 1,771 (2,124) Purchase price earn-out (1)(3) 9 831 Third-party warrants (4) 24 75 Total $ (30,114) $ 158,910 _____________________ (1) Recorded within noninterest income—loan origination and sales in the condensed consolidated statements of operations and comprehensive income (loss). (2) Represents derivative contracts to manage securitization investment interest rate risk, which are recorded within noninterest income—securitizations in the condensed consolidated statements of operations and comprehensive income (loss). (3) In conjunction with a loan sale agreement, we are entitled to receive payments from the buyer of the loans underlying the agreement if the internal rate of return (as defined in the loan sale agreement) on such loans exceeds a specified hurdle, subject to a dollar cap. (4) Includes amounts recorded within noninterest income—other, noninterest expense—cost of operations and noninterest expense—general and administrative |
Schedule of Offsetting Liabilities | The following table presents information about derivative instruments subject to enforceable master netting arrangements: March 31, 2023 December 31, 2022 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Interest rate swaps $ 3,465 $ (1,281) $ 23,128 $ — Interest rate caps — (7,481) — (9,251) Home loan pipeline hedges 9 (2,087) 1,484 (80) Total, gross 3,474 (10,849) 24,612 (9,331) Derivative netting (1,290) 1,290 (80) 80 Total, net (1) $ 2,184 $ (9,559) $ 24,532 $ (9,251) _____________________ (1) As of March 31, 2023, we had a cash collateral requirement related to these instruments of $2,078. We did not have a cash collateral requirement related to these instruments as of December 31, 2022. |
Schedule of Offsetting Assets | The following table presents information about derivative instruments subject to enforceable master netting arrangements: March 31, 2023 December 31, 2022 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Interest rate swaps $ 3,465 $ (1,281) $ 23,128 $ — Interest rate caps — (7,481) — (9,251) Home loan pipeline hedges 9 (2,087) 1,484 (80) Total, gross 3,474 (10,849) 24,612 (9,331) Derivative netting (1,290) 1,290 (80) 80 Total, net (1) $ 2,184 $ (9,559) $ 24,532 $ (9,251) _____________________ (1) As of March 31, 2023, we had a cash collateral requirement related to these instruments of $2,078. We did not have a cash collateral requirement related to these instruments as of December 31, 2022. |
Schedule of Notional Amounts of Derivatives | The following table presents the notional amount of derivative contracts outstanding: March 31, 2023 December 31, 2022 Derivative contracts to manage future loan sale execution risk: Interest rate swaps $ 5,428,177 $ 5,638,177 Interest rate caps 405,000 405,000 Home loan pipeline hedges 140,000 126,000 Interest rate caps (1) 405,000 405,000 Interest rate swaps (2) 196,823 171,823 IRLCs (3) 108,375 82,335 Total $ 6,683,375 $ 6,828,335 _____________________ (1) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk. (2) Represents interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments. (3) Amounts correspond with home loan funding commitments subject to IRLC agreements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes, by level within the fair value hierarchy, the estimated fair values of our assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets: March 31, 2023 December 31, 2022 Fair Value Fair Value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Investments in AFS debt securities (1)(2) $ 119,086 $ 55,750 $ — $ 174,836 $ 137,032 $ 58,406 $ — $ 195,438 Asset-backed bonds (2)(3) — 142,272 — 142,272 — 155,093 — 155,093 Residual investments (2)(3) — — 42,960 42,960 — — 46,238 46,238 Loans at fair value — — 15,858,105 15,858,105 — — 13,557,074 13,557,074 Servicing rights — — 146,514 146,514 — — 149,854 149,854 Third party warrants (4)(5) — — 630 630 — — 630 630 Derivative assets (4)(6)(7) — 3,474 — 3,474 — 24,612 — 24,612 Purchase price earn-out (4)(8) — — — — — — 54 54 IRLCs (4)(9) — — 634 634 — — 216 216 Student loan commitments (4)(9) — — 75 75 — — — — Interest rate caps (4)(7) — 7,484 — 7,484 — 9,178 — 9,178 Digital assets safeguarding asset (4)(10) — 167,954 — 167,954 — 106,826 — 106,826 Total assets $ 119,086 $ 376,934 $ 16,048,918 $ 16,544,938 $ 137,032 $ 354,115 $ 13,754,066 $ 14,245,213 Liabilities Debt (11) $ — $ 74,675 $ — $ 74,675 $ — $ 89,142 $ — $ 89,142 Residual interests classified as debt — — 15,565 15,565 — — 17,048 17,048 Derivative liabilities (4)(6)(7) — 10,849 — 10,849 — 9,331 — 9,331 Student loan commitments (4)(9) — — — — — — 236 236 Digital assets safeguarding liability (4)(10) — 167,954 — 167,954 — 106,826 — 106,826 Total liabilities $ — $ 253,478 $ 15,565 $ 269,043 $ — $ 205,299 $ 17,284 $ 222,583 _____________________ (1) The investments in AFS debt securities that were classified as Level 2 rely upon observable inputs other than quoted prices, dealer quotes in markets that are not active and implied pricing derived from new issuances of similar securities. See Note 6. Investment Securities for additional information. (2) These assets are presented within investment securities in the condensed consolidated balance sheets. (3) These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. See Note 7. Securitization and Variable Interest Entities for additional information. We classify asset-backed bonds as Level 2 due to the use of quoted prices for similar assets in markets that are not active, as well as certain factors specific to us. The key inputs used to value the asset-backed bonds include the discount rate and conditional prepayment rate. The fair value of our asset-backed bonds was not materially impacted by default assumptions on the underlying securitization loans, as the subordinate residual interests are expected to absorb all estimated losses based on our default assumptions for the period. We classify the residual investments as Level 3 due to the reliance on significant unobservable valuation inputs. (4) These assets and liabilities are presented within other assets and accounts payable, accruals and other liabilities , respectively, in the condensed consolidated balance sheets. (5) The key unobservable assumption used in the fair value measurement of the third party warrants was the price of the stock underlying the warrants. The fair value was measured as the difference between the stock price and the strike price of the warrants. As the strike price was insignificant, we concluded that the impact of time value on the fair value measure was immaterial. (6) For certain derivative instruments for which an enforceable master netting agreement exists, we elected to net derivative assets and derivative liabilities by counterparty. These instruments are presented on a gross basis herein. See Note 11. Derivative Financial Instruments for additional information. (7) Home loan pipeline hedges represent to-be-announced (“TBA”) securities used as economic hedges of loan fair values and are classified as Level 2, as we rely on quoted market prices from similar loan pools that transact in the marketplace. Interest rate swaps and interest rate caps are classified as Level 2, because these financial instruments do not trade in active markets with observable prices, but rely on observable inputs other than quoted prices. As of March 31, 2023 and December 31, 2022, interest rate swaps and interest rate caps were valued using the overnight SOFR curve and the implied volatilities suggested by the SOFR rate curve. These were determined to be observable inputs from active markets. (8) The purchase price earn-out provision is classified as Level 3 because of our reliance on unobservable inputs related to the underlying loan portfolio performance, such as conditional prepayment rates, annual default rates and discount rates. (9) IRLCs and student loan commitments are classified as Level 3 because of our reliance on assumed loan funding probabilities. The assumed probabilities are based on our internal historical experience with home loans and student loans similar to those in the funding pipelines on the measurement date. (10) The digital assets safeguarding liability and corresponding safeguarding asset are classified as Level 2, because they do not trade in active markets, and are valued using quoted prices on an active exchange that has been identified as the principal market for the underlying digital assets that are being held by our third-party custodians for the benefit of our members. (11) The fair value of our securitization debt was classified as Level 2 and valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. As of March 31, 2023 and December 31, 2022, the unpaid principal related to debt measured at fair value was $82,647 and $98,868, respectively. For the three months ended March 31, 2023, losses from changes in fair value were $944. The estimated amounts of gains (losses) included in earnings attributable to changes in instrument-specific credit risk, which were derived principally from observable changes in credit spread as observed in the bond market, were immaterial. |
Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis | The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). We did not have any transfers into or out of Level 3 during the periods presented. Fair Value at Fair Value at January 1, 2023 Impact on Earnings Purchases Sales Issuances Settlements March 31, 2023 Assets Personal loans $ 8,610,434 $ 86,094 $ 40,039 $ — $ 2,951,358 $ (1,150,926) $ 10,536,999 Student loans 4,877,177 67,190 — — 525,373 (229,681) 5,240,059 Home loans 69,463 (494) 552 (77,880) 89,787 (381) 81,047 Loans at fair value (1) 13,557,074 152,790 40,591 (77,880) 3,566,518 (1,380,988) 15,858,105 Servicing rights 149,854 12,084 613 (135) 954 (16,856) 146,514 Residual investments (2) 46,238 1,104 — (306) — (4,076) 42,960 Purchase price earn out 54 9 — — — (63) — IRLCs (3) 216 634 — — — (216) 634 Student loan commitments (3) (236) 75 — — — 236 75 Third party warrants 630 — — — — — 630 Liabilities Residual interests classified as debt (2) (17,048) (89) — — — 1,572 (15,565) Net impact on earnings 166,607 Fair Value at Fair Value at January 1, 2022 Impact on Earnings Purchases Sales Issuances Settlements March 31, 2022 Assets Personal loans $ 2,289,426 $ (7,016) $ 160,748 $ (977,920) $ 2,026,004 $ (372,454) $ 3,118,788 Student loans 3,450,837 (42,370) 116,433 (544,150) 983,804 (227,115) 3,737,439 Home loans 212,709 (9,162) 498 (365,370) 312,383 (4,400) 146,658 Loans at fair value (1) 5,952,972 (58,548) 277,679 (1,887,440) 3,322,191 (603,969) 7,002,885 Servicing rights 168,259 11,580 629 (1,410) 16,486 (22,039) 173,505 Residual investments (2) 121,019 762 — — — (15,104) 106,677 Purchase price earn out 4,272 830 — — — (2,817) 2,285 Student loan commitments (3) 2,220 23 — — — (2,220) 23 Third party warrants 1,369 (142) — — — — 1,227 Liabilities Residual interests classified as debt (2) (93,682) (2,963) — — — 26,113 (70,532) IRLCs (3) 3,759 (3,039) — — — (3,759) (3,039) Net impact on earnings (51,497) _____________________ (1) For loans at fair value, issuances represent the principal balance of loans originated during the period. Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three months ended March 31, 2023 and 2022 included securitization clean-up calls of $39,936 and $275,499, respectively. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Gains and losses recognized in earnings include changes in accumulated interest and fair value adjustments on loans originated during the period and on loans held at the balance sheet date, as well as loan charge-offs. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains (losses) included in earnings attributable to changes in instrument-specific credit risk were $(50,529) and $6,496 during the three months ended March 31, 2023 and 2022, respectively. The gains (losses) attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument. (2) For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, we record changes in fair value within noninterest income—securitizations in the condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively. (3) For IRLCs and student loan commitments, settlements reflect funded and unfunded adjustments representing the unpaid principal balance of funded and unfunded loans during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. For year-to-date periods, amounts represent the summation of the per-quarter effects. Changes in fair value are recorded within noninterest income—loan origination and sales in the condensed consolidated statements of operations and comprehensive income (loss). |
Schedule of Changes in Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). We did not have any transfers into or out of Level 3 during the periods presented. Fair Value at Fair Value at January 1, 2023 Impact on Earnings Purchases Sales Issuances Settlements March 31, 2023 Assets Personal loans $ 8,610,434 $ 86,094 $ 40,039 $ — $ 2,951,358 $ (1,150,926) $ 10,536,999 Student loans 4,877,177 67,190 — — 525,373 (229,681) 5,240,059 Home loans 69,463 (494) 552 (77,880) 89,787 (381) 81,047 Loans at fair value (1) 13,557,074 152,790 40,591 (77,880) 3,566,518 (1,380,988) 15,858,105 Servicing rights 149,854 12,084 613 (135) 954 (16,856) 146,514 Residual investments (2) 46,238 1,104 — (306) — (4,076) 42,960 Purchase price earn out 54 9 — — — (63) — IRLCs (3) 216 634 — — — (216) 634 Student loan commitments (3) (236) 75 — — — 236 75 Third party warrants 630 — — — — — 630 Liabilities Residual interests classified as debt (2) (17,048) (89) — — — 1,572 (15,565) Net impact on earnings 166,607 Fair Value at Fair Value at January 1, 2022 Impact on Earnings Purchases Sales Issuances Settlements March 31, 2022 Assets Personal loans $ 2,289,426 $ (7,016) $ 160,748 $ (977,920) $ 2,026,004 $ (372,454) $ 3,118,788 Student loans 3,450,837 (42,370) 116,433 (544,150) 983,804 (227,115) 3,737,439 Home loans 212,709 (9,162) 498 (365,370) 312,383 (4,400) 146,658 Loans at fair value (1) 5,952,972 (58,548) 277,679 (1,887,440) 3,322,191 (603,969) 7,002,885 Servicing rights 168,259 11,580 629 (1,410) 16,486 (22,039) 173,505 Residual investments (2) 121,019 762 — — — (15,104) 106,677 Purchase price earn out 4,272 830 — — — (2,817) 2,285 Student loan commitments (3) 2,220 23 — — — (2,220) 23 Third party warrants 1,369 (142) — — — — 1,227 Liabilities Residual interests classified as debt (2) (93,682) (2,963) — — — 26,113 (70,532) IRLCs (3) 3,759 (3,039) — — — (3,759) (3,039) Net impact on earnings (51,497) _____________________ (1) For loans at fair value, issuances represent the principal balance of loans originated during the period. Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three months ended March 31, 2023 and 2022 included securitization clean-up calls of $39,936 and $275,499, respectively. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Gains and losses recognized in earnings include changes in accumulated interest and fair value adjustments on loans originated during the period and on loans held at the balance sheet date, as well as loan charge-offs. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains (losses) included in earnings attributable to changes in instrument-specific credit risk were $(50,529) and $6,496 during the three months ended March 31, 2023 and 2022, respectively. The gains (losses) attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument. (2) For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, we record changes in fair value within noninterest income—securitizations in the condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively. (3) For IRLCs and student loan commitments, settlements reflect funded and unfunded adjustments representing the unpaid principal balance of funded and unfunded loans during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. For year-to-date periods, amounts represent the summation of the per-quarter effects. Changes in fair value are recorded within noninterest income—loan origination and sales in the condensed consolidated statements of operations and comprehensive income (loss). |
Schedule of Valuation Inputs and Assumptions | The following key unobservable assumptions were used in the fair value measurement of our loans: March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Conditional prepayment rate 14.0% – 24.2% 19.1% 17.3% – 25.5% 19.1% Annual default rate 3.2% – 52.8% 4.6% 3.8% – 37.7% 4.4% Discount rate 5.2% – 8.6% 5.5% 5.4% – 8.3% 6.1% Student loans Conditional prepayment rate 8.5% – 12.9% 10.4% 16.3% – 21.8% 20.4% Annual default rate 0.2% – 4.3% 0.4% 0.2% – 4.5% 0.5% Discount rate 3.7% – 8.1% 4.1% 3.6% – 8.7% 4.0% Home loans Conditional prepayment rate 2.1% – 13.4% 8.9% 2.0% – 10.2% 7.0% Annual default rate 0.1% – 0.9% 0.1% 0.1% – 1.3% 0.1% Discount rate 5.6% – 14.5% 6.0% 5.7% – 14.1% 5.9% March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Market servicing costs 0.2% – 0.6% 0.3% 0.2% – 0.5% 0.3% Conditional prepayment rate 18.2% – 28.9% 22.8% 17.9% – 31.3% 22.7% Annual default rate 3.5% – 17.5% 5.7% 3.4% – 7.9% 4.9% Discount rate 7.8% – 7.8% 7.8% 7.8% – 7.8% 7.8% Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 9.1% – 15.3% 12.5% 15.4% – 21.9% 17.8% Annual default rate 0.3% – 3.7% 0.5% 0.3% – 4.3% 0.4% Discount rate 7.8% – 7.8% 7.8% 7.8% – 7.8% 7.8% Home loans Market servicing costs 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Conditional prepayment rate 4.9% – 12.3% 5.5% 4.9% – 11.0% 5.2% Annual default rate 0.1% – 0.2% 0.1% 0.1% – 0.1% 0.1% Discount rate 9.0% – 9.0% 9.0% 9.0% – 9.0% 9.0% The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt: March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 12.7% – 25.2% 14.4% 17.9% – 32.0% 19.9% Annual default rate 0.4% – 5.8% 1.1% 0.4% – 5.4% 1.1% Discount rate 5.0% – 10.0% 6.9% 4.8% – 10.5% 6.7% Residual interests classified as debt Conditional prepayment rate 12.5% – 13.1% 12.6% 17.2% – 18.1% 17.8% Annual default rate 0.6% – 0.8% 0.6% 0.6% – 0.8% 0.7% Discount rate 7.8% – 7.8% 7.8% 7.5% – 7.5% 7.5% March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 2.6% – 58.5% 57.8% 11.1% – 58.6% 46.3% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% – 95.0% 95.0% ___________________ (1) The aggregate amount of student loans we committed to fund was $4,842 as of March 31, 2023. See Note 11. Derivative Financial Instruments for the aggregate notional amount associated with IRLCs. |
Schedule of Sensitivity Analysis for Servicing Rights | The following table presents the estimated decrease to the fair value of our servicing rights if the key assumptions had each of the below adverse changes: March 31, 2023 December 31, 2022 Market servicing costs 2.5 basis points increase $ (10,615) $ (10,395) 5.0 basis points increase (21,230) (20,807) Conditional prepayment rate 10% increase $ (3,592) $ (4,036) 20% increase (7,011) (7,833) Annual default rate 10% increase $ (163) $ (166) 20% increase (326) (331) Discount rate 100 basis points increase $ (4,093) $ (3,905) 200 basis points increase (7,921) (7,562) |
Schedule of Safeguarding Assets and Liabilities | The following table presents the significant digital assets held by our third-party custodians on behalf of our members: March 31, 2023 December 31, 2022 Bitcoin (BTC) $ 76,729 $ 44,346 Ethereum (ETH) 55,026 37,826 Cardano (ADA) 8,403 5,217 Dogecoin (DOGE) 5,483 4,784 Solana (SOL) 3,432 1,588 Litecoin (LTC) 3,165 2,492 Ethereum Classic (ETC) 2,957 2,333 All other (1) 12,759 8,240 Digital assets safeguarding liability and corresponding safeguarding asset $ 167,954 $ 106,826 ___________________ (1) Includes 23 and 23 digital assets as of March 31, 2023 and December 31, 2022, respectively, none of which were determined to be individually significant. |
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value | The following table summarizes the carrying values and estimated fair values, by level within the fair value hierarchy, of our assets and liabilities that are not measured at fair value on a recurring basis in the condensed consolidated balance sheets: Fair Value Carrying Value Level 1 Level 2 Level 3 Total March 31, 2023 Assets Cash and cash equivalents (1) $ 2,487,778 $ 2,487,778 $ — $ — $ 2,487,778 Restricted cash and restricted cash equivalents (1) 489,736 489,736 — — 489,736 Loans at amortized cost (2) 328,029 — — 348,885 348,885 Other investments (3) 33,503 — 33,503 — 33,503 Total assets $ 3,339,046 $ 2,977,514 $ 33,503 $ 348,885 $ 3,359,902 Liabilities Deposits (4) $ 10,088,441 $ — $ 10,087,506 $ — $ 10,087,506 Debt (5) 6,050,826 847,511 4,874,094 — 5,721,605 Total liabilities $ 16,139,267 $ 847,511 $ 14,961,600 $ — $ 15,809,111 December 31, 2022 Assets Cash and cash equivalents (1) $ 1,421,907 $ 1,421,907 $ — $ — $ 1,421,907 Restricted cash and restricted cash equivalents (1) 424,395 424,395 — — 424,395 Loans at amortized cost (2) 307,957 — — 328,775 328,775 Other investments (3) 28,651 — 28,651 — 28,651 Total assets $ 2,182,910 $ 1,846,302 $ 28,651 $ 328,775 $ 2,203,728 Liabilities Deposits (4) $ 7,342,296 $ — $ 7,340,160 $ — $ 7,340,160 Debt (5) 5,396,740 826,242 4,219,574 — 5,045,816 Total liabilities $ 12,739,036 $ 826,242 $ 11,559,734 $ — $ 12,385,976 ___________________ (1) The carrying amounts of our cash and cash equivalents and restricted cash and restricted cash equivalents approximate their fair values due to the short-term maturities and highly liquid nature of these accounts. (2) The fair value of our credit cards was determined using a discounted cash flow model with key inputs relating to weighted average lives, expected lifetime loss rates and discount rate. The fair value of our commercial and consumer banking loans was determined using a discounted cash flow model with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults. (3) Other investments include Federal Reserve Bank (“FRB”) stock and FHLB stock, which are presented within other assets in the condensed consolidated balance sheets. (4) The fair values of our deposits without contractually defined maturities (such as demand and savings deposits) and our noninterest-bearing deposits approximate the carrying values. The fair value of our time-based deposits was determined using a discounted cash flow model based on rates currently offered for deposits of similar remaining maturities. (5) The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt and revolving credit facility debt were classified as Level 2 and based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was classified as Level 2 and valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation | Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the condensed consolidated statements of operations and comprehensive income (loss): Three Months Ended March 31, 2023 2022 Technology and product development $ 18,228 $ 17,492 Sales and marketing 6,587 5,133 Cost of operations 1,500 4,143 General and administrative 37,911 50,253 Total $ 64,226 $ 77,021 |
Schedule of Stock Option Activity | The following is a summary of stock option activity: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding as of January 1, 2023 18,749,679 $ 7.43 4.7 Exercised (161,231) 1.04 Expired (18,571) 6.36 Outstanding as of March 31, 2023 18,569,877 $ 7.49 4.4 Exercisable as of March 31, 2023 18,525,473 $ 7.49 4.4 |
Schedule of Restricted Stock Unit Activity | The following table summarizes RSU activity: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2023 69,538,139 $ 9.07 Granted 27,547,218 6.21 Vested (1) (6,737,174) 9.16 Forfeited (4,208,806) 9.31 Outstanding as of March 31, 2023 86,139,377 $ 8.13 ________________________ (1) The total fair value, based on grant date fair value, of RSUs that vested during the three months ended March 31, 2023 was $61.7 million. |
Schedule of Performance Stock Unit Activity | The following table summarizes PSU activity: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2023 19,563,747 $ 9.84 Forfeited (1,490,718) 7.51 Outstanding as of March 31, 2023 18,073,029 $ 10.03 |
Schedule of Valuation Inputs for Compensation Costs Associated with PSUs | The following key unobservable assumptions were used in the fair value measurement of our loans: March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Conditional prepayment rate 14.0% – 24.2% 19.1% 17.3% – 25.5% 19.1% Annual default rate 3.2% – 52.8% 4.6% 3.8% – 37.7% 4.4% Discount rate 5.2% – 8.6% 5.5% 5.4% – 8.3% 6.1% Student loans Conditional prepayment rate 8.5% – 12.9% 10.4% 16.3% – 21.8% 20.4% Annual default rate 0.2% – 4.3% 0.4% 0.2% – 4.5% 0.5% Discount rate 3.7% – 8.1% 4.1% 3.6% – 8.7% 4.0% Home loans Conditional prepayment rate 2.1% – 13.4% 8.9% 2.0% – 10.2% 7.0% Annual default rate 0.1% – 0.9% 0.1% 0.1% – 1.3% 0.1% Discount rate 5.6% – 14.5% 6.0% 5.7% – 14.1% 5.9% March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Market servicing costs 0.2% – 0.6% 0.3% 0.2% – 0.5% 0.3% Conditional prepayment rate 18.2% – 28.9% 22.8% 17.9% – 31.3% 22.7% Annual default rate 3.5% – 17.5% 5.7% 3.4% – 7.9% 4.9% Discount rate 7.8% – 7.8% 7.8% 7.8% – 7.8% 7.8% Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 9.1% – 15.3% 12.5% 15.4% – 21.9% 17.8% Annual default rate 0.3% – 3.7% 0.5% 0.3% – 4.3% 0.4% Discount rate 7.8% – 7.8% 7.8% 7.8% – 7.8% 7.8% Home loans Market servicing costs 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Conditional prepayment rate 4.9% – 12.3% 5.5% 4.9% – 11.0% 5.2% Annual default rate 0.1% – 0.2% 0.1% 0.1% – 0.1% 0.1% Discount rate 9.0% – 9.0% 9.0% 9.0% – 9.0% 9.0% The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt: March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 12.7% – 25.2% 14.4% 17.9% – 32.0% 19.9% Annual default rate 0.4% – 5.8% 1.1% 0.4% – 5.4% 1.1% Discount rate 5.0% – 10.0% 6.9% 4.8% – 10.5% 6.7% Residual interests classified as debt Conditional prepayment rate 12.5% – 13.1% 12.6% 17.2% – 18.1% 17.8% Annual default rate 0.6% – 0.8% 0.6% 0.6% – 0.8% 0.7% Discount rate 7.8% – 7.8% 7.8% 7.5% – 7.5% 7.5% March 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 2.6% – 58.5% 57.8% 11.1% – 58.6% 46.3% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% – 95.0% 95.0% ___________________ (1) The aggregate amount of student loans we committed to fund was $4,842 as of March 31, 2023. See Note 11. Derivative Financial Instruments for the aggregate notional amount associated with IRLCs. |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The calculations of basic and diluted loss per share were as follows: Three Months Ended March 31, 2023 2022 Numerator: Net loss $ (34,422) $ (110,357) Less: Redeemable preferred stock dividends (9,968) (9,968) Net loss attributable to common stockholders – basic and diluted $ (44,390) $ (120,325) Denominator: Weighted average common stock outstanding – basic 929,270,723 852,853,596 Weighted average common stock outstanding – diluted 929,270,723 852,853,596 Loss per share – basic $ (0.05) $ (0.14) Loss per share – diluted $ (0.05) $ (0.14) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | We excluded the effect of the below elements from our calculation of diluted loss per share, as their inclusion would have been anti-dilutive, as there were no earnings attributable to common stockholders. These amounts represent the number of instruments outstanding at the end of the period. March 31, 2023 2022 Common stock options 18,569,877 20,059,315 Common stock warrants 12,170,990 12,170,990 Unvested RSUs 86,139,377 62,633,066 Unvested PSUs 18,073,029 23,092,586 Convertible notes (1) 53,538,000 53,538,000 Contingent common stock (2) 6,305,595 6,903,663 Potentially issuable contingent common stock (3) — 598,068 ________________________ (1) Represents the shares of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the date indicated. (2) As of March 31, 2023, includes contingently returnable common stock in connection with the Technisys Merger, which consists of shares that may be used to satisfy certain indemnification claims, subject to certain limitations, and to cover any outstanding claims or indemnifications pursuant to the merger agreement. See Note 2. Business Combinations for additional information. (3) As of March 31, 2022, included the maximum amount of potentially issuable contingent common stock in connection with the Technisys Merger, which was pending final agreement regarding a closing net working capital calculation specified in the merger agreement. |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment: Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Three Months Ended March 31, 2023 Net revenue Net interest income (expense) $ 201,047 $ — $ 58,037 $ 259,084 $ (23,074) $ 236,010 Noninterest income (expense) (2) 136,034 77,887 23,064 236,985 (837) 236,148 Total net revenue (loss) 337,081 77,887 81,101 496,069 (23,911) 472,158 Servicing rights – change in valuation inputs or assumptions (3) (12,084) — — (12,084) Residual interests classified as debt – change in valuation inputs or assumptions (4) 89 — — 89 Directly attributable expenses (115,188) (63,030) (105,336) (283,554) Contribution profit (loss) $ 209,898 $ 14,857 $ (24,235) $ 200,520 Three Months Ended March 31, 2022 Net revenue Net interest income (expense) $ 94,354 $ — $ 5,882 $ 100,236 $ (5,303) $ 94,933 Noninterest income (expense) (2) 158,635 60,805 17,661 237,101 (1,690) 235,411 Total net revenue (loss) $ 252,989 $ 60,805 $ 23,543 $ 337,337 $ (6,993) $ 330,344 Servicing rights – change in valuation inputs or assumptions (3) (11,580) — — (11,580) Residual interests classified as debt – change in valuation inputs or assumptions (4) 2,963 — — 2,963 Directly attributable expenses (111,721) (42,550) (73,058) (227,329) Contribution profit (loss) $ 132,651 $ 18,255 $ (49,515) $ 101,391 ____________________ (1) Within the Technology Platform segment, intercompany fees were $3,741 and $770 for the three months ended March 31, 2023 and 2022, respectively. The equal and offsetting intercompany expenses are reflected within the Financial Services and Technology Platform segment directly attributable expenses. The intercompany revenues and expenses are eliminated in consolidation. The revenues are eliminated within Corporate/Other and the expenses are adjusted in our reconciliation of directly attributable expenses below. (2) Refer to Note 3. Revenue for a reconciliation of revenue from contracts with customers to total noninterest income (expense). (3) Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment, default rates and discount rates. This non-cash change, which is recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income (loss), is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. (4) Reflects changes in fair value inputs and assumptions, including conditional prepayment, default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the condensed consolidated statements of operations and comprehensive income (loss). The fair value change attributable to assumption changes has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to securitization collateral cash flows), or the general operations of our business. As such, this non-cash change in fair value during the period is adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. No single customer accounted for more than 10% of our consolidated revenues for the periods presented. The following table reconciles reportable segments total contribution profit to loss before income taxes. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources. Three Months Ended March 31, 2023 2022 Reportable segments total contribution profit $ 200,520 $ 101,391 Corporate/Other total net loss (23,911) (6,993) Intercompany expenses 3,741 770 Servicing rights – change in valuation inputs or assumptions 12,084 11,580 Residual interests classified as debt – change in valuation inputs or assumptions (89) (2,963) Expenses not allocated to segments: Share-based compensation expense (64,226) (77,021) Employee-related costs (1) (61,814) (42,690) Depreciation and amortization expense (45,321) (30,698) Other corporate and unallocated expenses (2) (57,043) (62,981) Loss before income taxes $ (36,059) $ (109,605) __________________ (1) Includes compensation, benefits, restructuring charges, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments. (2) Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing and advertising costs, tools and subscription costs, professional services costs, corporate and FDIC insurance costs and transaction-related expenses. |
Organization, Summary of Sign_3
Organization, Summary of Significant Accounting Policies and New Accounting Standards (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | segment | 3 |
Restructuring charges | $ | $ 4,953 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Feb. 02, 2022 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Payments to settle vested employee performance awards | $ 17,946 | ||||
Period escrow shares expected to be released after close of acquisition (no later than) | 15 months | ||||
Goodwill | $ 1,622,991 | $ 1,622,991 | |||
Technology Platform | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 1,585,832 | 1,585,832 | |||
Financial Services | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 37,159 | $ 37,159 | |||
Technisys S.A. | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 913,764 | ||||
Payments to settle vested employee performance awards | $ 17,946 | ||||
Revenue of acquiree since acquisition date | $ 6,200 | ||||
Net loss of acquiree since date of acquisition | $ 1,800 | ||||
Technisys S.A. | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Shares held in escrow (in shares) | 6,305,595 | ||||
Golden Pacific Bancorp, Inc. | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 22,300 | ||||
Holdback amount | $ 3,300 |
Business Combinations - Schedul
Business Combinations - Schedule of Pro-forma Information (Details) - Technisys S.A. $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Total net revenue | $ 342,109 |
Net loss | $ (103,983) |
Revenue - Schedule of Revenues
Revenue - Schedule of Revenues (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 95,482,000 | $ 77,022,000 | |
Loan origination and sales | 126,511,000 | 157,704,000 | |
Securitizations | (3,177,000) | (11,281,000) | |
Servicing | 12,742,000 | 12,236,000 | |
Other | 4,590,000 | (270,000) | |
Total other sources of revenue | 140,666,000 | 158,389,000 | |
Total noninterest income | 236,148,000 | 235,411,000 | |
Deferred revenue | 8,526,000 | $ 10,028,000 | |
Deferred revenue, amount recognized | 2,340,000 | 785,000 | |
Lending | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 0 | 0 | |
Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 22,260,000 | 16,987,000 | |
Technology Platform | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 73,222,000 | 60,035,000 | |
Referrals | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 9,626,000 | 7,768,000 | |
Interchange | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 7,269,000 | 4,286,000 | |
Brokerage | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 4,878,000 | 4,730,000 | |
Other | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 487,000 | 203,000 | |
Technology services | Technology Platform | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 72,129,000 | 59,157,000 | |
Software licenses | Technology Platform | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 672,000 | 700,000 | |
Other | Technology Platform | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 421,000 | $ 178,000 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable associated with revenue from contracts with customer, net | $ 58,772 | $ 61,226 |
Loans - Schedule of Loan Portfo
Loans - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | $ 15,858,105 | $ 13,557,074 |
Total loans held for investment, at amortized cost | 328,029 | 307,957 |
Total loans | 16,186,134 | 13,865,031 |
Variable Interest Entity, Primary Beneficiary | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 1,164,464 | 931,701 |
Commercial and consumer banking | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | 111,115 | 98,793 |
Personal Loans | Personal loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 10,536,999 | 8,610,434 |
Personal Loans | Personal loans | Variable Interest Entity, Primary Beneficiary | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 962,476 | 663,004 |
Student Loans | Student loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 5,240,059 | 4,877,177 |
Student Loans | Student loans | Variable Interest Entity, Primary Beneficiary | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 201,988 | 268,697 |
Home loans | Home loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 81,047 | 69,463 |
Credit card | Credit card | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | 216,914 | 209,164 |
Commercial real estate | Commercial and consumer banking | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | 101,453 | 88,652 |
Commercial and industrial | Commercial and consumer banking | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | 6,659 | 7,179 |
Residential real estate and other consumer | Commercial and consumer banking | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | $ 3,003 | $ 2,962 |
Loans - Schedule of Loans Measu
Loans - Schedule of Loans Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total fair value of loans | $ 15,858,105 | $ 13,557,074 |
Personal Loans | Personal loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total fair value of loans | 10,536,999 | 8,610,434 |
Student Loans | Student Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total fair value of loans | 5,240,059 | 4,877,177 |
Home Loans | Home Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total fair value of loans | 81,047 | 69,463 |
Fair Value, Recurring | Fair Value | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 15,216,504 | 13,155,622 |
Accumulated interest | 89,998 | 75,257 |
Cumulative fair value adjustments | 551,603 | 326,195 |
Total fair value of loans | 15,858,105 | 13,557,074 |
Fair Value, Recurring | Fair Value | Fair Value of Loans 90 Days or More Delinquent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 43,722 | 34,424 |
Accumulated interest | 2,037 | 1,511 |
Cumulative fair value adjustments | (37,502) | (28,354) |
Total fair value of loans | 8,257 | 7,581 |
Fair Value, Recurring | Fair Value | Personal Loans | Personal loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 10,039,769 | 8,283,400 |
Accumulated interest | 69,049 | 55,673 |
Cumulative fair value adjustments | 428,181 | 271,361 |
Total fair value of loans | 10,536,999 | 8,610,434 |
Fair Value, Recurring | Fair Value | Personal Loans | Fair Value of Loans 90 Days or More Delinquent | Personal loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 37,754 | 27,989 |
Accumulated interest | 1,731 | 1,207 |
Cumulative fair value adjustments | (34,219) | (25,022) |
Total fair value of loans | 5,266 | 4,174 |
Fair Value, Recurring | Fair Value | Student Loans | Student Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 5,086,953 | 4,794,517 |
Accumulated interest | 20,787 | 19,433 |
Cumulative fair value adjustments | 132,319 | 63,227 |
Total fair value of loans | 5,240,059 | 4,877,177 |
Fair Value, Recurring | Fair Value | Student Loans | Fair Value of Loans 90 Days or More Delinquent | Student Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 5,968 | 6,435 |
Accumulated interest | 306 | 304 |
Cumulative fair value adjustments | (3,283) | (3,332) |
Total fair value of loans | 2,991 | 3,407 |
Fair Value, Recurring | Fair Value | Home Loans | Home Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 89,782 | 77,705 |
Accumulated interest | 162 | 151 |
Cumulative fair value adjustments | (8,897) | (8,393) |
Total fair value of loans | 81,047 | 69,463 |
Fair Value, Recurring | Fair Value | Home Loans | Fair Value of Loans 90 Days or More Delinquent | Home Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total fair value of loans | $ 0 | $ 0 |
Loans - Schedule of Whole Loan
Loans - Schedule of Whole Loan Sales (Details) - Whole loans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Personal loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Cash | $ 0 | $ 1,018,689 |
Servicing assets recognized | 0 | 6,424 |
Repurchase liabilities recognized | 0 | (2,298) |
Total consideration | 0 | 1,022,815 |
Aggregate unpaid principal balance and accrued interest of loans sold | 0 | 981,855 |
Gain (loss) from loan sales | 0 | 40,960 |
Student Loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Cash | 0 | 548,911 |
Servicing assets recognized | 0 | 5,824 |
Repurchase liabilities recognized | 0 | (80) |
Total consideration | 0 | 554,655 |
Aggregate unpaid principal balance and accrued interest of loans sold | 0 | 546,287 |
Gain (loss) from loan sales | 0 | 8,368 |
Home Loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Cash | 77,819 | 359,700 |
Servicing assets recognized | 954 | 4,238 |
Repurchase liabilities recognized | (96) | (420) |
Total consideration | 78,677 | 363,518 |
Aggregate unpaid principal balance and accrued interest of loans sold | 77,976 | 365,560 |
Gain (loss) from loan sales | $ 701 | $ (2,042) |
Loans - Schedule of Transferred
Loans - Schedule of Transferred Loans with Continued Involvement but Not Recorded on Consolidated Balance Sheet and Cash Flows Received (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Contractually Specified Servicing Fee Income, Statement Of Income Or Comprehensive Income, Extensible Enumeration, Not Disclosed Flag | Servicing fees collected | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | $ 15,176,905 | $ 16,123,132 | |
Servicing fees collected | 19,543 | $ 20,441 | |
Charge-offs, net of recoveries | 66,595 | 25,358 | |
Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 251,402 | 268,507 | |
Personal loans | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 2,884,653 | 3,402,795 | |
Servicing fees collected | 7,193 | 8,637 | |
Charge-offs, net of recoveries | 57,442 | 17,138 | |
Personal loans | Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 130,475 | 136,179 | |
Student Loans | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 7,173,819 | 7,586,031 | |
Servicing fees collected | 9,190 | 9,168 | |
Charge-offs, net of recoveries | 9,153 | 8,220 | |
Student Loans | Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 105,250 | 115,818 | |
Home Loans | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 5,118,433 | 5,134,306 | |
Servicing fees collected | 3,160 | 2,636 | |
Charge-offs, net of recoveries | 0 | $ 0 | |
Home Loans | Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | $ 15,677 | $ 16,510 |
Loans - Schedule of Loans by St
Loans - Schedule of Loans by Status (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | $ 38,937,000 | $ 40,788,000 | ||
Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 362,089,000 | 344,106,000 | ||
Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 343,316,000 | 325,311,000 | ||
30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 4,271,000 | 4,670,000 | ||
60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 3,669,000 | 3,627,000 | ||
≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 10,833,000 | 10,498,000 | ||
Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 18,773,000 | 18,795,000 | ||
Credit card | Credit card loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 37,089,000 | 39,110,000 | $ 16,500,000 | $ 7,037,000 |
Accumulated accrued interest | 4,514,000 | 4,315,000 | ||
Loans on nonaccrual status | 0 | 0 | ||
Credit card | Credit card loans | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 249,489,000 | 243,959,000 | ||
Credit card | Credit card loans | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 231,057,000 | 225,165,000 | ||
Credit card | Credit card loans | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 4,267,000 | 4,670,000 | ||
Credit card | Credit card loans | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 3,332,000 | 3,626,000 | ||
Credit card | Credit card loans | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 10,833,000 | 10,498,000 | ||
Credit card | Credit card loans | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 18,432,000 | 18,794,000 | ||
Commercial and consumer banking | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 112,099,000 | |||
Financing receivable, allowance for credit loss | 1,848,000 | 1,678,000 | $ 1,366,000 | $ 0 |
Accumulated accrued interest | 363,000 | 324,000 | ||
Commercial and consumer banking | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 112,600,000 | 100,147,000 | ||
Commercial and consumer banking | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 112,259,000 | 100,146,000 | ||
Commercial and consumer banking | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 4,000 | 0 | ||
Commercial and consumer banking | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 337,000 | 1,000 | ||
Commercial and consumer banking | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial and consumer banking | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 341,000 | 1,000 | ||
Commercial and consumer banking | Commercial real estate | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 102,194,000 | |||
Commercial and consumer banking | Commercial real estate | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 102,390,000 | 89,544,000 | ||
Commercial and consumer banking | Commercial real estate | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 102,390,000 | 89,544,000 | ||
Commercial and consumer banking | Commercial real estate | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial and consumer banking | Commercial real estate | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial and consumer banking | Commercial real estate | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial and consumer banking | Commercial real estate | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial and consumer banking | Commercial and industrial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 6,970,000 | |||
Commercial and consumer banking | Commercial and industrial | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 7,209,000 | 7,637,000 | ||
Commercial and consumer banking | Commercial and industrial | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 6,868,000 | 7,636,000 | ||
Commercial and consumer banking | Commercial and industrial | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 4,000 | 0 | ||
Commercial and consumer banking | Commercial and industrial | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 337,000 | 1,000 | ||
Commercial and consumer banking | Commercial and industrial | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial and consumer banking | Commercial and industrial | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 341,000 | 1,000 | ||
Commercial and consumer banking | Residential real estate and other consumer | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 2,935,000 | |||
Commercial and consumer banking | Residential real estate and other consumer | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 3,001,000 | 2,966,000 | ||
Commercial and consumer banking | Residential real estate and other consumer | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 3,001,000 | 2,966,000 | ||
Commercial and consumer banking | Residential real estate and other consumer | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial and consumer banking | Residential real estate and other consumer | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial and consumer banking | Residential real estate and other consumer | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial and consumer banking | Residential real estate and other consumer | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | $ 0 | $ 0 |
Loans - Schedule of Internal Ri
Loans - Schedule of Internal Risk Tier Categories (Details) - Total Loans - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 362,089 | $ 344,106 |
Credit card | Credit card loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 249,489 | 243,959 |
Credit card | Credit card loans | ≥ 800 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 16,835 | 14,421 |
Credit card | Credit card loans | 780 – 799 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 11,895 | 11,327 |
Credit card | Credit card loans | 760 – 779 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 13,394 | 12,179 |
Credit card | Credit card loans | 740 – 759 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 15,373 | 14,501 |
Credit card | Credit card loans | 720 – 739 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 19,966 | 19,343 |
Credit card | Credit card loans | 700 – 719 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 26,790 | 26,239 |
Credit card | Credit card loans | 680 – 699 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 31,887 | 31,543 |
Credit card | Credit card loans | 660 – 679 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 31,779 | 31,958 |
Credit card | Credit card loans | 640 – 659 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 24,765 | 25,959 |
Credit card | Credit card loans | 620 – 639 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 15,036 | 15,566 |
Credit card | Credit card loans | 600 – 619 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,215 | 8,968 |
Credit card | Credit card loans | ≤ 599 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 32,554 | $ 31,955 |
Loans - Schedule of Risk Catego
Loans - Schedule of Risk Categories of Loans by Class of Loans (Details) - Commercial and Consumer Banking $ in Thousands | Mar. 31, 2023 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | $ 14,288 |
2022 | 39,030 |
2021 | 7,401 |
2020 | 6,353 |
2019 | 11,201 |
Prior | 33,826 |
Total Term Loans | 112,099 |
Revolving Loans | 501 |
Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 14,258 |
2022 | 39,030 |
2021 | 7,401 |
2020 | 6,278 |
2019 | 11,074 |
Prior | 24,153 |
Total Term Loans | 102,194 |
Revolving Loans | 196 |
Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 30 |
2022 | 0 |
2021 | 0 |
2020 | 75 |
2019 | 127 |
Prior | 6,738 |
Total Term Loans | 6,970 |
Revolving Loans | 239 |
Residential real estate and other consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 2,935 |
Total Term Loans | 2,935 |
Revolving Loans | 66 |
Pass | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 13,011 |
2022 | 34,387 |
2021 | 5,725 |
2020 | 6,278 |
2019 | 10,178 |
Prior | 19,081 |
Total Term Loans | 88,660 |
Revolving Loans | 196 |
Pass | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 30 |
2022 | 0 |
2021 | 0 |
2020 | 75 |
2019 | 0 |
Prior | 5,430 |
Total Term Loans | 5,535 |
Revolving Loans | 215 |
Pass | Residential real estate and other consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 2,894 |
Total Term Loans | 2,894 |
Revolving Loans | 65 |
Watch | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 1,247 |
2022 | 4,643 |
2021 | 1,676 |
2020 | 0 |
2019 | 223 |
Prior | 2,808 |
Total Term Loans | 10,597 |
Revolving Loans | 0 |
Watch | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 127 |
Prior | 33 |
Total Term Loans | 160 |
Revolving Loans | 24 |
Watch | Residential real estate and other consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 41 |
Total Term Loans | 41 |
Revolving Loans | 1 |
Special mention | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 673 |
Prior | 1,596 |
Total Term Loans | 2,269 |
Revolving Loans | 0 |
Substandard | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 668 |
Total Term Loans | 668 |
Revolving Loans | 0 |
Substandard | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 1,275 |
Total Term Loans | 1,275 |
Revolving Loans | $ 0 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 40,788 | |
Provision for credit losses | 8,407 | $ 12,961 |
Ending balance | 38,937 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 2,785 | 2,292 |
Provision for credit losses | (854) | (591) |
Write-offs charged against the allowance | (286) | (49) |
Ending balance | 1,645 | 1,652 |
Recovery of previously written off accounts receivable | 1,161 | 1,392 |
Credit Card Loans | Credit card loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 39,110 | 7,037 |
Provision for credit losses | 8,237 | 11,977 |
Allowance for PCD loans | 0 | |
Write-offs charged against the allowance | (10,258) | (2,514) |
Ending balance | 37,089 | 16,500 |
Commercial and Consumer Banking | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,678 | 0 |
Provision for credit losses | 170 | 984 |
Allowance for PCD loans | 382 | |
Write-offs charged against the allowance | 0 | 0 |
Ending balance | $ 1,848 | $ 1,366 |
Investments Securities - Schedu
Investments Securities - Schedule of Investments in Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 180,629 | $ 203,418 |
Accrued Interest | $ 570 | 631 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Fair Value | |
Gross Unrealized Gains | $ 0 | 0 |
Gross Unrealized Losses | (6,363) | (8,611) |
Fair Value | 174,836 | 195,438 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 101,944 | 121,282 |
Accrued Interest | 248 | 217 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,273) | (3,510) |
Fair Value | 99,919 | 117,989 |
Multinational securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,596 | 19,658 |
Accrued Interest | 75 | 109 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (504) | (724) |
Fair Value | 19,167 | 19,043 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 38,771 | 41,890 |
Accrued Interest | 211 | 257 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,112) | (2,644) |
Fair Value | 36,870 | 39,503 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,648 | 8,899 |
Accrued Interest | 21 | 22 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (871) | (991) |
Fair Value | 7,798 | 7,930 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,542 | 9,556 |
Accrued Interest | 5 | 5 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (417) | (514) |
Fair Value | 9,130 | 9,047 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,128 | 2,133 |
Accrued Interest | 10 | 21 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (186) | (228) |
Fair Value | $ 1,952 | $ 1,926 |
Investments Securities - Sche_2
Investments Securities - Schedule of Investment Securities in Gross Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | $ 7,705 | $ 39,432 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | (196) | (2,498) |
Investments in AFS debt securities, 12 months or longer, fair value | 167,131 | 156,006 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (6,167) | (6,113) |
Investments in AFS debt securities, total, fair value | 174,836 | 195,438 |
Investments in AFS debt securities, total, gross unrealized losses | (6,363) | (8,611) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 7,705 | 27,759 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | (196) | (1,171) |
Investments in AFS debt securities, 12 months or longer, fair value | 92,214 | 90,230 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (2,077) | (2,339) |
Investments in AFS debt securities, total, fair value | 99,919 | 117,989 |
Investments in AFS debt securities, total, gross unrealized losses | (2,273) | (3,510) |
Multinational securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 0 | 0 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | 0 | 0 |
Investments in AFS debt securities, 12 months or longer, fair value | 19,167 | 19,043 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (504) | (724) |
Investments in AFS debt securities, total, fair value | 19,167 | 19,043 |
Investments in AFS debt securities, total, gross unrealized losses | (504) | (724) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 0 | 4,480 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | 0 | (313) |
Investments in AFS debt securities, 12 months or longer, fair value | 36,870 | 35,023 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (2,112) | (2,331) |
Investments in AFS debt securities, total, fair value | 36,870 | 39,503 |
Investments in AFS debt securities, total, gross unrealized losses | (2,112) | (2,644) |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 0 | 6,448 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | 0 | (814) |
Investments in AFS debt securities, 12 months or longer, fair value | 7,798 | 1,482 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (871) | (177) |
Investments in AFS debt securities, total, fair value | 7,798 | 7,930 |
Investments in AFS debt securities, total, gross unrealized losses | (871) | (991) |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 0 | 0 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | 0 | 0 |
Investments in AFS debt securities, 12 months or longer, fair value | 9,130 | 9,047 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (417) | (514) |
Investments in AFS debt securities, total, fair value | 9,130 | 9,047 |
Investments in AFS debt securities, total, gross unrealized losses | (417) | (514) |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 0 | 745 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | 0 | (200) |
Investments in AFS debt securities, 12 months or longer, fair value | 1,952 | 1,181 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (186) | (28) |
Investments in AFS debt securities, total, fair value | 1,952 | 1,926 |
Investments in AFS debt securities, total, gross unrealized losses | $ (186) | $ (228) |
Investments Securities - Sche_3
Investments Securities - Schedule of Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | $ 103,207 | |
Due After One Year Through Five Years | 62,743 | |
Due After Five Years Through Ten Years | 6,078 | |
Due After Ten Years | 8,601 | |
Amortized Cost | $ 180,629 | $ 203,418 |
Weighted average yield for investments in AFS debt securities | ||
Due Within One Year | 4.69% | |
Due After One Year Through Five Years | 5.70% | |
Due After Five Years Through Ten Years | 0.01% | |
Due After Ten Years | 9.04% | |
Total | 5.10% | |
AFS investment securities—Fair value: | ||
Due Within One Year | $ 101,190 | |
Due After One Year Through Five Years | 59,838 | |
Due After Five Years Through Ten Years | 5,598 | |
Due After Ten Years | 7,640 | |
Total | 174,266 | |
Accrued Interest | 570 | 631 |
U.S. Treasury securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 72,228 | |
Due After One Year Through Five Years | 29,716 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Amortized Cost | 101,944 | 121,282 |
AFS investment securities—Fair value: | ||
Due Within One Year | 71,098 | |
Due After One Year Through Five Years | 28,573 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Total | 99,671 | |
Accrued Interest | 248 | 217 |
Multinational securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 19,596 | |
Due After One Year Through Five Years | 0 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Amortized Cost | 19,596 | 19,658 |
AFS investment securities—Fair value: | ||
Due Within One Year | 19,092 | |
Due After One Year Through Five Years | 0 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Total | 19,092 | |
Accrued Interest | 75 | 109 |
Corporate bonds | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 10,192 | |
Due After One Year Through Five Years | 25,248 | |
Due After Five Years Through Ten Years | 3,331 | |
Due After Ten Years | 0 | |
Amortized Cost | 38,771 | 41,890 |
AFS investment securities—Fair value: | ||
Due Within One Year | 9,827 | |
Due After One Year Through Five Years | 23,843 | |
Due After Five Years Through Ten Years | 2,989 | |
Due After Ten Years | 0 | |
Total | 36,659 | |
Accrued Interest | 211 | 257 |
Agency mortgage-backed securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 180 | |
Due After Five Years Through Ten Years | 804 | |
Due After Ten Years | 7,664 | |
Amortized Cost | 8,648 | 8,899 |
AFS investment securities—Fair value: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 170 | |
Due After Five Years Through Ten Years | 736 | |
Due After Ten Years | 6,871 | |
Total | 7,777 | |
Accrued Interest | 21 | 22 |
Other asset-backed securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 7,599 | |
Due After Five Years Through Ten Years | 1,943 | |
Due After Ten Years | 0 | |
Amortized Cost | 9,542 | 9,556 |
AFS investment securities—Fair value: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 7,252 | |
Due After Five Years Through Ten Years | 1,873 | |
Due After Ten Years | 0 | |
Total | 9,125 | |
Accrued Interest | 5 | 5 |
Other | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 1,191 | |
Due After One Year Through Five Years | 0 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 937 | |
Amortized Cost | 2,128 | 2,133 |
AFS investment securities—Fair value: | ||
Due Within One Year | 1,173 | |
Due After One Year Through Five Years | 0 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 769 | |
Total | 1,942 | |
Accrued Interest | $ 10 | $ 21 |
Investments Securities - Narrat
Investments Securities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross realized gains on investments in available-for-sale debt securities | $ 3,356 | $ 0 |
Gross realized losses on investments in available-for-sale debt securities | $ 509 | $ 0 |
Investment Securities - Schedul
Investment Securities - Schedule of Securitization of Investments (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Securitization investments | $ 185,232 | $ 201,331 |
Personal loans | ||
Variable Interest Entity [Line Items] | ||
Securitization investments | 14,892 | 20,172 |
Student Loans | ||
Variable Interest Entity [Line Items] | ||
Securitization investments | $ 170,340 | $ 181,159 |
Securitization and Variable I_2
Securitization and Variable Interest Entities (Details) - entity | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of consolidated VIEs (in entities) | 7 | 6 |
Number of consolidated VIEs subsequent to exercising securitization clean up calls (in entities) | 1 | |
Number of nonconsolidated entities in which investments are held | 22 | 23 |
Number of nonconsolidated VIEs exercised securitization clean up calls (in entities) | 1 |
Deposits - Schedule of Interest
Deposits - Schedule of Interest-Bearing Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Interest-bearing deposits: | ||
Savings deposits | $ 6,361,587 | $ 4,383,953 |
Demand deposits | 2,095,440 | 1,912,452 |
Time deposits | 1,559,377 | 969,387 |
Total interest-bearing deposits | 10,016,404 | 7,265,792 |
Brokered deposits | 1,620,767 | 1,026,400 |
Brokered time deposits | 1,526,195 | 940,000 |
Brokered demand deposits | 94,572 | 86,400 |
Uninsured deposits | $ 23,317 | $ 20,842 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Remainder of 2023 | $ 1,201,290 | |
2024 | 357,045 | |
2025 | 550 | |
2026 | 289 | |
2027 | 0 | |
Thereafter | 203 | |
Total | $ 1,559,377 | $ 969,387 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Total Outstanding | $ 6,159,595,000 | $ 5,520,963,000 | |
Less: unamortized debt issuance costs, premiums and discounts | (34,094,000) | (35,081,000) | |
Total debt | 6,125,501,000 | 5,485,882,000 | |
Debt discounts issued | 0 | ||
Debt premium | 0 | ||
Amount not available for general borrowing purposes to secure letter of credit | 8,600,000 | 9,100,000 | |
Asset Pledged as Collateral | |||
Debt Instrument [Line Items] | |||
Amount not available for general borrowing purposes to secure letter of credit | 13,700,000 | 11,700,000 | |
Personal Loan Securitizations | |||
Debt Instrument [Line Items] | |||
Total Collateral | 955,674,000 | ||
Total Outstanding | 738,588,000 | 529,132,000 | |
Student loan securitizations | |||
Debt Instrument [Line Items] | |||
Total Collateral | 210,040,000 | ||
Total Outstanding | 231,927,000 | 246,856,000 | |
Secured Debt | Asset Pledged as Collateral | |||
Debt Instrument [Line Items] | |||
Total Capacity | 19,000,000 | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Total Capacity | $ 5,000,000 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Unused commitment fee percentage | 0% | ||
Minimum | Personal Loan Securitizations | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 0.49% | ||
Minimum | Student loan securitizations | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 1.83% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Unused commitment fee percentage | 0.65% | ||
Maximum | Personal Loan Securitizations | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 6.21% | ||
Maximum | Student loan securitizations | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 9.29% | ||
Personal loan warehouse facilities | Line of Credit | |||
Debt Instrument [Line Items] | |||
Total Collateral | $ 1,845,226,000 | ||
Total Capacity | 4,100,000,000 | ||
Total Outstanding | $ 1,539,865,000 | 1,452,085,000 | |
Personal loan warehouse facilities | Minimum | Line of Credit | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5% | ||
Personal loan warehouse facilities | Maximum | Line of Credit | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 6.71% | ||
Student loan warehouse facilities | Line of Credit | |||
Debt Instrument [Line Items] | |||
Total Collateral | $ 2,737,906,000 | ||
Total Capacity | 4,180,000,000 | ||
Total Outstanding | $ 1,868,019,000 | 1,504,926,000 | |
Student loan warehouse facilities | Minimum | Line of Credit | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5.42% | ||
Student loan warehouse facilities | Maximum | Line of Credit | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 6.66% | ||
Credit card warehouse facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Total Collateral | $ 0 | ||
Stated Interest Rate | 6.26% | ||
Total Capacity | $ 100,000,000 | ||
Total Outstanding | 0 | 0 | |
Risk retention warehouse facilities | Line of Credit | |||
Debt Instrument [Line Items] | |||
Total Collateral | 117,157,000 | ||
Total Capacity | 200,000,000 | ||
Total Outstanding | $ 95,196,000 | 101,964,000 | |
Risk retention warehouse facilities | Minimum | Line of Credit | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 6.37% | ||
Risk retention warehouse facilities | Maximum | Line of Credit | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 7.19% | ||
Revolving credit facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Amount not available for general borrowing purposes to secure letter of credit | $ 6,000,000 | ||
Revolving credit facility | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 5.86% | ||
Total Capacity | $ 560,000,000 | ||
Total Outstanding | $ 486,000,000 | 486,000,000 | |
Convertible senior notes | Convertible Debt | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate | 0% | ||
Total Outstanding | $ 1,200,000,000 | 1,200,000,000 | |
Less: unamortized debt issuance costs, premiums and discounts | (18,100,000) | (19,400,000) | |
Interest expense | $ 1,272,000 | $ 1,267,000 | |
Effective interest rate | 0.11% | 0.11% | |
Net carrying amount | $ 1,180,000,000 | 1,180,000,000 | |
Other financing | Other Financings | |||
Debt Instrument [Line Items] | |||
Total Collateral | 28,735,000 | ||
Total Capacity | 23,955,000 | ||
Total Outstanding | $ 0 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) - Line of Credit $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) loan | |
Personal loan warehouse facilities | |
Debt Instrument [Line Items] | |
Number of new loans opened | 1 |
Maximum available capacity of opened facilities | $ | $ 500 |
Risk retention warehouse facilities | |
Debt Instrument [Line Items] | |
Number of loans closed | 1 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Borrowings (Details) - Debt with Scheduled Payments $ in Thousands | Mar. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
Remainder of 2023 | $ 486,000 |
2024 | 0 |
2025 | 0 |
2026 | 1,200,000 |
2027 | 0 |
Thereafter | 0 |
Total debt | $ 1,686,000 |
Equity - Narrative (Details)
Equity - Narrative (Details) | 3 Months Ended | |||||
Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 shares | Jun. 01, 2021 $ / shares shares | May 28, 2021 $ / shares shares | |
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||
Redeemable preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||
Redeemable preferred stock, par value (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0.0000025 | |||
Redeemable preferred stock, shares issued (in shares) | 3,234,000 | 3,234,000 | ||||
Redeemable preferred stock, shares outstanding (in shares) | 3,234,000 | 3,234,000 | 3,234,000 | 3,234,000 | ||
Dividends payable | $ | $ 9,968,000 | $ 0 | ||||
Common stock, shares authorized (in shares) | 3,100,000,000 | 3,100,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0 | $ 0 | ||||
Common stock, shares issued (in shares) | 940,338,835 | 933,896,120 | ||||
Common stock, shares outstanding (in shares) | 940,338,835 | 933,896,120 | ||||
Series 1 | ||||||
Class of Stock [Line Items] | ||||||
Redeemable preferred stock, shares authorized (in shares) | 4,500,000 | |||||
Redeemable preferred stock, conversion ratio | 1 | |||||
Redeemable preferred stock, shares issued (in shares) | 3,234,000 | |||||
Redeemable preferred stock, shares outstanding (in shares) | 3,234,000 | |||||
Redeemable preferred stock, original issuance price (in dollars per share) | $ / shares | $ 100 | |||||
Dividends | $ | $ 9,968,000 | $ 9,968,000 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 3,000,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||
Non-Voting Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||
Common stock, shares issued (in shares) | 0 | 0 | ||||
Common stock, shares outstanding (in shares) | 0 | 0 |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 238,414,330 | 199,995,512 |
Conversion of convertible notes | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 53,538,000 | 53,538,000 |
Possible future issuance under stock plans | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 49,923,057 | 26,434,957 |
Outstanding common stock warrants | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 12,170,990 | 12,170,990 |
Outstanding stock options, restricted stock units and performance stock units | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 122,782,283 | 107,851,565 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Income (Loss) Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 5,208,102 | $ 4,377,329 |
Other comprehensive income (loss) before reclassifications | 1,783 | (4,654) |
Amounts reclassified from AOCI into earnings | 172 | 161 |
Total other comprehensive income (loss) | 1,955 | (4,493) |
Ending balance | 5,234,072 | 5,210,299 |
Accumulated Other Comprehensive Loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (8,296) | (1,471) |
Total other comprehensive income (loss) | 1,955 | (4,493) |
Ending balance | (6,341) | (5,964) |
Available-for-Sale Securities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (8,611) | (1,351) |
Other comprehensive income (loss) before reclassifications | 2,076 | (4,616) |
Amounts reclassified from AOCI into earnings | 172 | 161 |
Total other comprehensive income (loss) | 2,248 | (4,455) |
Ending balance | (6,363) | (5,806) |
Foreign Currency Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 315 | (120) |
Other comprehensive income (loss) before reclassifications | (293) | (38) |
Amounts reclassified from AOCI into earnings | 0 | 0 |
Total other comprehensive income (loss) | (293) | (38) |
Ending balance | $ 22 | $ (158) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Gains (Losses) Recognized on Derivative Instruments (Details) - Not designated as hedging instrument - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | $ (30,114) | $ 158,910 |
Derivative contracts to manage future loan sale execution risk | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | (31,228) | 160,607 |
Interest rate swaps | Derivative contracts to manage future loan sale execution risk | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | (28,456) | 134,514 |
Interest rate swaps | Derivative contracts not designed to manage future loan sale execution risk | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | (1,108) | 6,319 |
Interest rate caps | Derivative contracts to manage future loan sale execution risk | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | (1,695) | 2,623 |
Interest rate caps | Derivative contracts not designed to manage future loan sale execution risk | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | 1,771 | (2,124) |
Home loan pipeline hedges | Derivative contracts to manage future loan sale execution risk | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | (1,077) | 23,470 |
IRLCs | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | 418 | (6,798) |
Purchase price earn out | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | 9 | 831 |
Third-party warrants | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from fair value changes on derivatives | $ 24 | $ 75 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivative Instruments Subject to Enforceable Master Netting Arrangements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Gross Derivative Assets | ||
Total, gross | $ 3,474 | $ 24,612 |
Derivative netting | (1,290) | (80) |
Total, net | 2,184 | 24,532 |
Gross Derivative Liabilities | ||
Total, gross | (10,849) | (9,331) |
Derivative netting | 1,290 | 80 |
Total, net | (9,559) | (9,251) |
Cash collateral | 2,078 | 0 |
Interest rate swaps | ||
Gross Derivative Assets | ||
Total, gross | 3,465 | 23,128 |
Gross Derivative Liabilities | ||
Total, gross | (1,281) | 0 |
Interest rate caps | ||
Gross Derivative Assets | ||
Total, gross | 0 | 0 |
Gross Derivative Liabilities | ||
Total, gross | (7,481) | (9,251) |
Home loan pipeline hedges | ||
Gross Derivative Assets | ||
Total, gross | 9 | 1,484 |
Gross Derivative Liabilities | ||
Total, gross | $ (2,087) | $ (80) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Notional Amounts of Derivative Contracts Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional amount | $ 6,683,375 | $ 6,828,335 |
Derivative contracts to manage future loan sale execution risk | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 5,428,177 | 5,638,177 |
Derivative contracts to manage future loan sale execution risk | Interest rate caps | ||
Derivative [Line Items] | ||
Notional amount | 405,000 | 405,000 |
Derivative contracts to manage future loan sale execution risk | Home loan pipeline hedges | ||
Derivative [Line Items] | ||
Notional amount | 140,000 | 126,000 |
Derivative contracts not designed to manage future loan sale execution risk | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 196,823 | 171,823 |
Derivative contracts not designed to manage future loan sale execution risk | Interest rate caps | ||
Derivative [Line Items] | ||
Notional amount | 405,000 | 405,000 |
Derivative contracts not designed to manage future loan sale execution risk | IRLCs | ||
Derivative [Line Items] | ||
Notional amount | $ 108,375 | $ 82,335 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | ||
Investments in AFS debt securities | $ 174,836 | $ 195,438 |
Servicing rights | 146,514 | 149,854 |
Digital assets safeguarding asset | 167,954 | 106,826 |
Liabilities | ||
Residual interests classified as debt | 15,565 | 17,048 |
Digital assets safeguarding liability | 167,954 | 106,826 |
Unpaid principal related to debt measured at fair value | 82,647 | 98,868 |
Losses from changes in fair value in debt | 944 | |
Fair Value | ||
Assets | ||
Total assets | 3,359,902 | 2,203,728 |
Liabilities | ||
Debt | 5,721,605 | 5,045,816 |
Total liabilities | 15,809,111 | 12,385,976 |
Fair Value | Fair Value, Recurring | ||
Assets | ||
Investments in AFS debt securities | 174,836 | 195,438 |
Loans at fair value | 15,858,105 | 13,557,074 |
Servicing rights | 146,514 | 149,854 |
Digital assets safeguarding asset | 167,954 | 106,826 |
Total assets | 16,544,938 | 14,245,213 |
Liabilities | ||
Debt | 74,675 | 89,142 |
Digital assets safeguarding liability | 167,954 | 106,826 |
Total liabilities | 269,043 | 222,583 |
Fair Value | Asset-backed bonds | Fair Value, Recurring | ||
Assets | ||
Asset-backed bonds and residual investments | 142,272 | 155,093 |
Fair Value | Residual investments | Fair Value, Recurring | ||
Assets | ||
Asset-backed bonds and residual investments | 42,960 | 46,238 |
Fair Value | Third-party warrants | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 630 | 630 |
Fair Value | Derivative assets | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 3,474 | 24,612 |
Fair Value | Purchase price earn out | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 54 |
Fair Value | IRLCs | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 634 | 216 |
Fair Value | Student loan commitments | Fair Value, Recurring | ||
Assets | ||
Student loan commitments | 75 | 0 |
Liabilities | ||
Student loan commitments | 0 | 236 |
Fair Value | Interest rate caps | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 7,484 | 9,178 |
Fair Value | Residual interests classified as debt | Fair Value, Recurring | ||
Liabilities | ||
Residual interests classified as debt | 15,565 | 17,048 |
Fair Value | Derivative liabilities | Fair Value, Recurring | ||
Liabilities | ||
Derivative liabilities | 10,849 | 9,331 |
Level 1 | ||
Assets | ||
Total assets | 2,977,514 | 1,846,302 |
Liabilities | ||
Debt | 847,511 | 826,242 |
Total liabilities | 847,511 | 826,242 |
Level 1 | Fair Value, Recurring | ||
Assets | ||
Investments in AFS debt securities | 119,086 | 137,032 |
Loans at fair value | 0 | 0 |
Servicing rights | 0 | 0 |
Digital assets safeguarding asset | 0 | 0 |
Total assets | 119,086 | 137,032 |
Liabilities | ||
Debt | 0 | 0 |
Digital assets safeguarding liability | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Asset-backed bonds | Fair Value, Recurring | ||
Assets | ||
Asset-backed bonds and residual investments | 0 | 0 |
Level 1 | Residual investments | Fair Value, Recurring | ||
Assets | ||
Asset-backed bonds and residual investments | 0 | 0 |
Level 1 | Third-party warrants | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 1 | Derivative assets | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 1 | Purchase price earn out | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 1 | IRLCs | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 1 | Student loan commitments | Fair Value, Recurring | ||
Assets | ||
Student loan commitments | 0 | 0 |
Liabilities | ||
Student loan commitments | 0 | 0 |
Level 1 | Interest rate caps | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 1 | Residual interests classified as debt | Fair Value, Recurring | ||
Liabilities | ||
Residual interests classified as debt | 0 | 0 |
Level 1 | Derivative liabilities | Fair Value, Recurring | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level 2 | ||
Assets | ||
Total assets | 33,503 | 28,651 |
Liabilities | ||
Debt | 4,874,094 | 4,219,574 |
Total liabilities | 14,961,600 | 11,559,734 |
Level 2 | Fair Value, Recurring | ||
Assets | ||
Investments in AFS debt securities | 55,750 | 58,406 |
Loans at fair value | 0 | 0 |
Servicing rights | 0 | 0 |
Digital assets safeguarding asset | 167,954 | 106,826 |
Total assets | 376,934 | 354,115 |
Liabilities | ||
Debt | 74,675 | 89,142 |
Digital assets safeguarding liability | 167,954 | 106,826 |
Total liabilities | 253,478 | 205,299 |
Level 2 | Asset-backed bonds | Fair Value, Recurring | ||
Assets | ||
Asset-backed bonds and residual investments | 142,272 | 155,093 |
Level 2 | Residual investments | Fair Value, Recurring | ||
Assets | ||
Asset-backed bonds and residual investments | 0 | 0 |
Level 2 | Third-party warrants | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 2 | Derivative assets | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 3,474 | 24,612 |
Level 2 | Purchase price earn out | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 2 | IRLCs | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 2 | Student loan commitments | Fair Value, Recurring | ||
Assets | ||
Student loan commitments | 0 | 0 |
Liabilities | ||
Student loan commitments | 0 | 0 |
Level 2 | Interest rate caps | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 7,484 | 9,178 |
Level 2 | Residual interests classified as debt | Fair Value, Recurring | ||
Liabilities | ||
Residual interests classified as debt | 0 | 0 |
Level 2 | Derivative liabilities | Fair Value, Recurring | ||
Liabilities | ||
Derivative liabilities | 10,849 | 9,331 |
Level 3 | ||
Assets | ||
Total assets | 348,885 | 328,775 |
Liabilities | ||
Debt | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Fair Value, Recurring | ||
Assets | ||
Investments in AFS debt securities | 0 | 0 |
Loans at fair value | 15,858,105 | 13,557,074 |
Servicing rights | 146,514 | 149,854 |
Digital assets safeguarding asset | 0 | 0 |
Total assets | 16,048,918 | 13,754,066 |
Liabilities | ||
Debt | 0 | 0 |
Digital assets safeguarding liability | 0 | 0 |
Total liabilities | 15,565 | 17,284 |
Level 3 | Asset-backed bonds | Fair Value, Recurring | ||
Assets | ||
Asset-backed bonds and residual investments | 0 | 0 |
Level 3 | Residual investments | Fair Value, Recurring | ||
Assets | ||
Asset-backed bonds and residual investments | 42,960 | 46,238 |
Level 3 | Third-party warrants | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 630 | 630 |
Level 3 | Derivative assets | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 3 | Purchase price earn out | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 54 |
Level 3 | IRLCs | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 634 | 216 |
Level 3 | Student loan commitments | Fair Value, Recurring | ||
Assets | ||
Student loan commitments | 75 | 0 |
Liabilities | ||
Student loan commitments | 0 | 236 |
Level 3 | Interest rate caps | Fair Value, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 3 | Residual interests classified as debt | Fair Value, Recurring | ||
Liabilities | ||
Residual interests classified as debt | 15,565 | 17,048 |
Level 3 | Derivative liabilities | Fair Value, Recurring | ||
Liabilities | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | |
Liabilities | |||
Net impact on earnings | $ 166,607 | $ (51,497) | |
Securitization clean-up calls | 39,936 | 275,499 | |
Gain (loss) included in earnings from changes in instrument-specific credit risk | (50,529) | 6,496 | |
Residual interests classified as debt | |||
Liabilities | |||
Fair value at beginning of period | (17,048) | (93,682) | |
Impact on Earnings | (89) | (2,963) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 1,572 | 26,113 | |
Fair value at end of period | (15,565) | (70,532) | |
IRLCs | |||
Liabilities | |||
Fair value at beginning of period | 3,039 | $ 3,759 | |
Impact on Earnings | (3,039) | ||
Purchases | 0 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | (3,759) | ||
Fair value at end of period | 3,039 | ||
Loans at fair value | |||
Assets | |||
Fair value at beginning of period | 13,557,074 | 5,952,972 | |
Impact on Earnings | 152,790 | (58,548) | |
Purchases | 40,591 | 277,679 | |
Sales | (77,880) | (1,887,440) | |
Issuances | 3,566,518 | 3,322,191 | |
Settlements | (1,380,988) | (603,969) | |
Fair value at end of period | 15,858,105 | 7,002,885 | |
Personal loans | |||
Assets | |||
Fair value at beginning of period | 8,610,434 | 2,289,426 | |
Impact on Earnings | 86,094 | (7,016) | |
Purchases | 40,039 | 160,748 | |
Sales | 0 | (977,920) | |
Issuances | 2,951,358 | 2,026,004 | |
Settlements | (1,150,926) | (372,454) | |
Fair value at end of period | 10,536,999 | 3,118,788 | |
Student loans | |||
Assets | |||
Fair value at beginning of period | 4,877,177 | 3,450,837 | |
Impact on Earnings | 67,190 | (42,370) | |
Purchases | 0 | 116,433 | |
Sales | 0 | (544,150) | |
Issuances | 525,373 | 983,804 | |
Settlements | (229,681) | (227,115) | |
Fair value at end of period | 5,240,059 | 3,737,439 | |
Home loans | |||
Assets | |||
Fair value at beginning of period | 69,463 | 212,709 | |
Impact on Earnings | (494) | (9,162) | |
Purchases | 552 | 498 | |
Sales | (77,880) | (365,370) | |
Issuances | 89,787 | 312,383 | |
Settlements | (381) | (4,400) | |
Fair value at end of period | 81,047 | 146,658 | |
Servicing rights | |||
Assets | |||
Fair value at beginning of period | 149,854 | 168,259 | |
Impact on Earnings | 12,084 | 11,580 | |
Purchases | 613 | 629 | |
Sales | (135) | (1,410) | |
Issuances | 954 | 16,486 | |
Settlements | (16,856) | (22,039) | |
Fair value at end of period | 146,514 | 173,505 | |
Residual investments | |||
Assets | |||
Fair value at beginning of period | 46,238 | 121,019 | |
Impact on Earnings | 1,104 | 762 | |
Purchases | 0 | 0 | |
Sales | (306) | 0 | |
Issuances | 0 | 0 | |
Settlements | (4,076) | (15,104) | |
Fair value at end of period | 42,960 | 106,677 | |
Purchase price earn out | |||
Assets | |||
Fair value at beginning of period | 54 | 4,272 | |
Impact on Earnings | 9 | 830 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (63) | (2,817) | |
Fair value at end of period | 0 | 2,285 | |
IRLCs | |||
Assets | |||
Fair value at beginning of period | 216 | ||
Impact on Earnings | 634 | ||
Purchases | 0 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | (216) | ||
Fair value at end of period | 634 | ||
Student loan commitments | |||
Assets | |||
Fair value at beginning of period | 2,220 | ||
Fair value at beginning of period | 236 | ||
Impact on Earnings | 75 | 23 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 236 | (2,220) | |
Fair value at end of period | 23 | ||
Fair value at end of period | 75 | ||
Third-party warrants | |||
Assets | |||
Fair value at beginning of period | 630 | 1,369 | |
Impact on Earnings | 0 | (142) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Fair value at end of period | $ 630 | $ 1,227 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Valuation Inputs and Assumptions (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Aggregate amount committed | $ 4,842 | |
Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.127 | 0.179 |
Residual interests classified as debt | 0.125 | 0.172 |
Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.252 | 0.320 |
Residual interests classified as debt | 0.131 | 0.181 |
Conditional prepayment rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.144 | 0.199 |
Residual interests classified as debt | 0.126 | 0.178 |
Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.004 | 0.004 |
Residual interests classified as debt | 0.006 | 0.006 |
Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.058 | 0.054 |
Residual interests classified as debt | 0.008 | 0.008 |
Annual default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.011 | 0.011 |
Residual interests classified as debt | 0.006 | 0.007 |
Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.050 | 0.048 |
Residual interests classified as debt | 0.078 | 0.075 |
Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.100 | 0.105 |
Residual interests classified as debt | 0.078 | 0.075 |
Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.069 | 0.067 |
Residual interests classified as debt | 0.078 | 0.075 |
Loan funding probability | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate lock commitments | 0.026 | 0.111 |
Student loan commitments | 0.950 | 0.950 |
Loan funding probability | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate lock commitments | 0.585 | 0.586 |
Student loan commitments | 0.950 | 0.950 |
Loan funding probability | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate lock commitments | 0.578 | 0.463 |
Student loan commitments | 0.950 | 0.950 |
Personal loans | Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.140 | 0.173 |
Servicing rights | 0.182 | 0.179 |
Personal loans | Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.242 | 0.255 |
Servicing rights | 0.289 | 0.313 |
Personal loans | Conditional prepayment rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.191 | 0.191 |
Servicing rights | 0.228 | 0.227 |
Personal loans | Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.032 | 0.038 |
Servicing rights | 0.035 | 0.034 |
Personal loans | Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.528 | 0.377 |
Servicing rights | 0.175 | 0.079 |
Personal loans | Annual default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.046 | 0.044 |
Servicing rights | 0.057 | 0.049 |
Personal loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.052 | 0.054 |
Servicing rights | 0.078 | 0.078 |
Personal loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.086 | 0.083 |
Servicing rights | 0.078 | 0.078 |
Personal loans | Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.055 | 0.061 |
Servicing rights | 0.078 | 0.078 |
Personal loans | Market servicing costs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.002 | 0.002 |
Personal loans | Market servicing costs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.006 | 0.005 |
Personal loans | Market servicing costs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.003 | 0.003 |
Student loans | Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.085 | 0.163 |
Servicing rights | 0.091 | 0.154 |
Student loans | Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.129 | 0.218 |
Servicing rights | 0.153 | 0.219 |
Student loans | Conditional prepayment rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.104 | 0.204 |
Servicing rights | 0.125 | 0.178 |
Student loans | Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.002 | 0.002 |
Servicing rights | 0.003 | 0.003 |
Student loans | Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.043 | 0.045 |
Servicing rights | 0.037 | 0.043 |
Student loans | Annual default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.004 | 0.005 |
Servicing rights | 0.005 | 0.004 |
Student loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.037 | 0.036 |
Servicing rights | 0.078 | 0.078 |
Student loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.081 | 0.087 |
Servicing rights | 0.078 | 0.078 |
Student loans | Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.041 | 0.040 |
Servicing rights | 0.078 | 0.078 |
Student loans | Market servicing costs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Student loans | Market servicing costs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.002 | 0.002 |
Student loans | Market servicing costs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Home loans | Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.021 | 0.020 |
Servicing rights | 0.049 | 0.049 |
Home loans | Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.134 | 0.102 |
Servicing rights | 0.123 | 0.110 |
Home loans | Conditional prepayment rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.089 | 0.070 |
Servicing rights | 0.055 | 0.052 |
Home loans | Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.001 | 0.001 |
Servicing rights | 0.001 | 0.001 |
Home loans | Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.009 | 0.013 |
Servicing rights | 0.002 | 0.001 |
Home loans | Annual default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.001 | 0.001 |
Servicing rights | 0.001 | 0.001 |
Home loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.056 | 0.057 |
Servicing rights | 0.090 | 0.090 |
Home loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.145 | 0.141 |
Servicing rights | 0.090 | 0.090 |
Home loans | Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.060 | 0.059 |
Servicing rights | 0.090 | 0.090 |
Home loans | Market servicing costs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Home loans | Market servicing costs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Home loans | Market servicing costs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Fair Value Measurements - Sch_4
Fair Value Measurements - Schedule of Sensitivity Analysis for Servicing Rights (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Market servicing costs | ||
2.5 basis points increase | $ (10,615) | $ (10,395) |
5.0 basis points increase | (21,230) | (20,807) |
Conditional prepayment rate | ||
10% increase | (3,592) | (4,036) |
20% increase | (7,011) | (7,833) |
Annual default rate | ||
10% increase | (163) | (166) |
20% increase | (326) | (331) |
Discount rate | ||
100 basis points increase | (4,093) | (3,905) |
200 basis points increase | $ (7,921) | $ (7,562) |
Fair Value Measurements - Sch_5
Fair Value Measurements - Schedule of Safeguarding Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2023 USD ($) digital_asset | Dec. 31, 2022 USD ($) digital_asset |
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | $ 167,954 | $ 106,826 |
Digital assets safeguarding liability | 167,954 | 106,826 |
Bitcoin (BTC) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 76,729 | 44,346 |
Digital assets safeguarding liability | 76,729 | 44,346 |
Ethereum (ETH) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 55,026 | 37,826 |
Digital assets safeguarding liability | 55,026 | 37,826 |
Cardano (ADA) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 8,403 | 5,217 |
Digital assets safeguarding liability | 8,403 | 5,217 |
Dogecoin (DOGE) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 5,483 | 4,784 |
Digital assets safeguarding liability | 5,483 | 4,784 |
Solana (SOL) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 3,432 | 1,588 |
Digital assets safeguarding liability | 3,432 | 1,588 |
Litecoin (LTC) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 3,165 | 2,492 |
Digital assets safeguarding liability | 3,165 | 2,492 |
Ethereum Classic (ETC) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 2,957 | 2,333 |
Digital assets safeguarding liability | 2,957 | 2,333 |
All other | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 12,759 | 8,240 |
Digital assets safeguarding liability | $ 12,759 | $ 8,240 |
Number of digital assets held | digital_asset | 23 | 23 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | Mar. 31, 2023 USD ($) custodian | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of third party custodians held by platform operator of safeguarding assets | custodian | 2 | |
Fair Value | Fair Value, Nonrecurring | Non-Securitization Investments – Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of non-securitization investments, other | $ 22,861 | $ 22,825 |
Fair Value | Fair Value, Nonrecurring | Other Security Investments, Investment Four | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of non-securitization investments, other | $ 19,739 | $ 19,739 |
Fair Value Measurements - Sch_6
Fair Value Measurements - Schedule of Assets and Liabilities not Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | $ 2,487,778 | $ 1,421,907 |
Restricted cash and restricted cash equivalents | 489,736 | 424,395 |
Loans at amortized cost | 0 | 0 |
Other investments | 0 | 0 |
Total assets | 2,977,514 | 1,846,302 |
Liabilities | ||
Deposits | 0 | 0 |
Debt | 847,511 | 826,242 |
Total liabilities | 847,511 | 826,242 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash and restricted cash equivalents | 0 | 0 |
Loans at amortized cost | 0 | 0 |
Other investments | 33,503 | 28,651 |
Total assets | 33,503 | 28,651 |
Liabilities | ||
Deposits | 10,087,506 | 7,340,160 |
Debt | 4,874,094 | 4,219,574 |
Total liabilities | 14,961,600 | 11,559,734 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash and restricted cash equivalents | 0 | 0 |
Loans at amortized cost | 348,885 | 328,775 |
Other investments | 0 | 0 |
Total assets | 348,885 | 328,775 |
Liabilities | ||
Deposits | 0 | 0 |
Debt | 0 | 0 |
Total liabilities | 0 | 0 |
Carrying Value | ||
Assets | ||
Cash and cash equivalents | 2,487,778 | 1,421,907 |
Restricted cash and restricted cash equivalents | 489,736 | 424,395 |
Loans at amortized cost | 328,029 | 307,957 |
Other investments | 33,503 | 28,651 |
Total assets | 3,339,046 | 2,182,910 |
Liabilities | ||
Deposits | 10,088,441 | 7,342,296 |
Debt | 6,050,826 | 5,396,740 |
Total liabilities | 16,139,267 | 12,739,036 |
Fair Value | ||
Assets | ||
Cash and cash equivalents | 2,487,778 | 1,421,907 |
Restricted cash and restricted cash equivalents | 489,736 | 424,395 |
Loans at amortized cost | 348,885 | 328,775 |
Other investments | 33,503 | 28,651 |
Total assets | 3,359,902 | 2,203,728 |
Liabilities | ||
Deposits | 10,087,506 | 7,340,160 |
Debt | 5,721,605 | 5,045,816 |
Total liabilities | $ 15,809,111 | $ 12,385,976 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) tranche | Mar. 31, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation and benefits, inclusive of share-based compensation expense | $ 216,415 | $ 187,809 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation | $ 650,800 | |
Compensation cost related to share based awards, period for recognition | 2 years 7 months 6 days | |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation | $ 32,400 | |
Number of vesting tranches | tranche | 3 | |
Compensation cost related to share based awards, period for recognition | 1 year 3 months 18 days |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 64,226 | $ 77,021 |
Technology and product development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 18,228 | 17,492 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 6,587 | 5,133 |
Cost of operations | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1,500 | 4,143 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 37,911 | $ 50,253 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Option Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Number of Stock Options | ||
Beginning balance (in shares) | 18,749,679 | |
Exercised (in shares) | (161,231) | |
Expired (in shares) | (18,571) | |
Ending balance (in shares) | 18,569,877 | 18,749,679 |
Exercisable (in shares) | 18,525,473 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 7.43 | |
Exercised (in dollars per share) | 1.04 | |
Expired (in dollars per share) | 6.36 | |
Ending balance (in dollars per share) | 7.49 | $ 7.43 |
Exercisable (in dollars per share) | $ 7.49 | |
Weighted Average Remaining Contractual Term (in years) | ||
Weighted average remaining contractual term, outstanding | 4 years 4 months 24 days | 4 years 8 months 12 days |
Weighted average remaining contractual term, exercisable | 4 years 4 months 24 days |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of RSU and PSU Activity (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Restricted Stock Units | |
Number of RSUs | |
Beginning balance (in shares) | shares | 69,538,139 |
Granted (in shares) | shares | 27,547,218 |
Vested (in shares) | shares | (6,737,174) |
Forfeited (in shares) | shares | (4,208,806) |
Ending balance (in shares) | shares | 86,139,377 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 9.07 |
Granted (in dollars per share) | $ / shares | 6.21 |
Vested (in dollars per share) | $ / shares | 9.16 |
Forfeited (in dollars per share) | $ / shares | 9.31 |
Ending balance (in dollars per share) | $ / shares | $ 8.13 |
Total fair value, RSUs granted | $ | $ 61.7 |
Performance Stock Units | |
Number of RSUs | |
Beginning balance (in shares) | shares | 19,563,747 |
Forfeited (in shares) | shares | (1,490,718) |
Ending balance (in shares) | shares | 18,073,029 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 9.84 |
Forfeited (in dollars per share) | $ / shares | 7.51 |
Ending balance (in dollars per share) | $ / shares | $ 10.03 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit (expense) | $ 1,637 | $ (752) |
Commitments, Guarantees, Conc_2
Commitments, Guarantees, Concentrations and Contingencies (Details) | 3 Months Ended | |
Mar. 31, 2023 USD ($) repurchase_obligation | Dec. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Non-cash operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 822,000 | |
Operating lease, impairment expense | $ 1,243,000 | |
Number of repurchase obligations | repurchase_obligation | 3 | |
Estimated repurchase obligations | $ 1,000,000 | $ 1,400,000 |
Loans sold, subject to terms and conditions of repurchase obligations | 5,000,000,000 | 5,100,000,000 |
Letters of credit outstanding with financial institutions | 8,600,000 | 9,100,000 |
Collateral amount | 2,600,000 | 3,100,000 |
Minimum net worth noncompliance, fines and penalties accrued | 0 | 0 |
Asset Pledged as Collateral | ||
Lessee, Lease, Description [Line Items] | ||
Letters of credit outstanding with financial institutions | $ 13,700,000 | $ 11,700,000 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, renewal term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, renewal term | 10 years |
Loss Per Share - Schedule of Ea
Loss Per Share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net loss | $ (34,422) | $ (110,357) |
Less: Redeemable preferred stock dividends | (9,968) | (9,968) |
Net loss attributable to common stockholders – basic | (44,390) | (120,325) |
Net loss attributable to common stockholders – diluted | $ (44,390) | $ (120,325) |
Denominator: | ||
Weighted average common stock outstanding - basic (in shares) | 929,270,723 | 852,853,596 |
Weighted average common stock outstanding - diluted (in shares) | 929,270,723 | 852,853,596 |
Loss per share - basic (in dollars per share) | $ (0.05) | $ (0.14) |
Loss per share - diluted (in dollars per share) | $ (0.05) | $ (0.14) |
Loss Per Share - Schedule of An
Loss Per Share - Schedule of Anti-Dilutive Elements (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Common stock options | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 18,569,877 | 20,059,315 |
Common stock warrants | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 12,170,990 | 12,170,990 |
Unvested RSUs | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 86,139,377 | 62,633,066 |
Unvested PSUs | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 18,073,029 | 23,092,586 |
Convertible notes | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 53,538,000 | 53,538,000 |
Contingent common stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,305,595 | 6,903,663 |
Potentially issuable contingent common stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 598,068 |
Business Segment Information -
Business Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment Information _2
Business Segment Information - Schedule of Financial Results (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net interest income | $ 236,010 | $ 94,933 |
Noninterest income (expense) | 236,148 | 235,411 |
Total net revenue (loss) | 472,158 | 330,344 |
Reportable Segments Total | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 259,084 | 100,236 |
Noninterest income (expense) | 236,985 | 237,101 |
Total net revenue (loss) | 496,069 | 337,337 |
Servicing rights – change in valuation inputs or assumptions | (12,084) | (11,580) |
Residual interests classified as debt – change in valuation inputs or assumptions | 89 | 2,963 |
Directly attributable expenses | (283,554) | (227,329) |
Contribution profit | 200,520 | 101,391 |
Intercompany expenses | 3,741 | 770 |
Reportable Segments Total | Lending | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 201,047 | 94,354 |
Noninterest income (expense) | 136,034 | 158,635 |
Total net revenue (loss) | 337,081 | 252,989 |
Servicing rights – change in valuation inputs or assumptions | (12,084) | (11,580) |
Residual interests classified as debt – change in valuation inputs or assumptions | 89 | 2,963 |
Directly attributable expenses | (115,188) | (111,721) |
Contribution profit | 209,898 | 132,651 |
Reportable Segments Total | Technology Platform | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 0 | 0 |
Noninterest income (expense) | 77,887 | 60,805 |
Total net revenue (loss) | 77,887 | 60,805 |
Servicing rights – change in valuation inputs or assumptions | 0 | 0 |
Residual interests classified as debt – change in valuation inputs or assumptions | 0 | 0 |
Directly attributable expenses | (63,030) | (42,550) |
Contribution profit | 14,857 | 18,255 |
Reportable Segments Total | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 58,037 | 5,882 |
Noninterest income (expense) | 23,064 | 17,661 |
Total net revenue (loss) | 81,101 | 23,543 |
Servicing rights – change in valuation inputs or assumptions | 0 | 0 |
Residual interests classified as debt – change in valuation inputs or assumptions | 0 | 0 |
Directly attributable expenses | (105,336) | (73,058) |
Contribution profit | (24,235) | (49,515) |
Corporate/Other | ||
Segment Reporting Information [Line Items] | ||
Net interest income | (23,074) | (5,303) |
Noninterest income (expense) | (837) | (1,690) |
Total net revenue (loss) | $ (23,911) | $ (6,993) |
Business Segment Information _3
Business Segment Information - Schedule of Reconciliation of Contribution Profit (Loss) to Loss Before Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Corporate/Other total net loss | $ 472,158 | $ 330,344 |
Share-based compensation expense | (64,226) | (77,021) |
Depreciation and amortization expense | (45,321) | (30,698) |
Loss before income taxes | (36,059) | (109,605) |
Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Reportable segments total contribution profit | 200,520 | 101,391 |
Corporate/Other total net loss | 496,069 | 337,337 |
Intercompany expenses | 3,741 | 770 |
Servicing rights – change in valuation inputs or assumptions | 12,084 | 11,580 |
Residual interests classified as debt – change in valuation inputs or assumptions | (89) | (2,963) |
Expenses not allocated to segments | ||
Segment Reporting Information [Line Items] | ||
Corporate/Other total net loss | (23,911) | (6,993) |
Share-based compensation expense | (64,226) | (77,021) |
Employee-related costs | (61,814) | (42,690) |
Depreciation and amortization expense | (45,321) | (30,698) |
Other corporate and unallocated expenses | ||
Segment Reporting Information [Line Items] | ||
Other corporate and unallocated expenses | $ (57,043) | $ (62,981) |
Subsequent Events (Details)
Subsequent Events (Details) - Revolving credit facility - Revolving credit facility - USD ($) $ in Thousands | Apr. 28, 2023 | Mar. 31, 2023 |
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 560,000 | |
Subsequent Event | Amended And Restated Revolving Credit Agreement | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 645,000 | |
Expiration period of revolving credit facility from closing date of agreeement | 5 years | |
Subsequent Event | Amended And Restated Revolving Credit Agreement | SOFR | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 0.10% |