FORM |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices and zip code) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
☒ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☐ | Smaller reporting company | ||
Emerging growth company | ||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
• | Various wholly-owned Delaware limited liability companies established to enter into warehouse credit agreements with certain lenders for secured credit facilities. |
• | Various entities established to facilitate loan sale transactions under LendingClub’s Structured Program, including sponsoring asset-backed securities transactions and Certificate Program transactions, where certain accredited investors and qualified institutional buyers have the opportunity to invest in senior and subordinated securities backed by a pool of unsecured personal whole loans. |
• | LC Trust I (the LC Trust), an independent Delaware business trust that acquires loans from LendingClub and holds them for the sole benefit of certain investors that have purchased trust certificates issued by the LC Trust and that are related to specific underlying loans for the benefit of the investor. |
• | Springstone Financial, LLC (Springstone), a wholly-owned Delaware limited liability company that facilitated the origination of education and patient finance loans by third-party issuing banks. All assets of Springstone have been transferred to LendingClub and Springstone is expected to be dissolved. |
• | the impact of COVID-19; |
• | our ability to effectuate and the effectiveness of certain strategy initiatives in light of COVID-19; |
• | the ability of our responses to mitigate adverse impacts, including on loan performance, arising in connection with COVID-19; |
• | our ability to successfully navigate the current economic climate; |
• | our ability to sustain the business under adverse circumstances; |
• | our ability to attract and retain borrowers; |
• | the ability of borrowers to repay loans and the plans of borrowers; |
• | our ability to maintain investor confidence in the operation of our platform; |
• | the likelihood of investors to continue to, directly or indirectly, invest through our platform; |
• | our ability to secure new or additional sources of investor commitments for our platform; |
• | expected rates of return for investors; |
• | platform volume, pricing and balance; |
• | the effectiveness of our platform’s credit scoring models; |
• | our ability to innovate and the success of new product initiatives; |
• | our ability to obtain or add bank functionality and a bank charter; |
• | our ability and timing to satisfy the closing conditions for the acquisition of Radius Bancorp, Inc. (including obtaining regulatory approval); |
• | the impact on the business from obtaining or adding bank functionality and a bank charter; |
• | our ability to resolve pending governmental inquiries and private litigation, and the terms of such resolution(s); |
• | the use of our own capital to purchase loans; |
• | maintaining liquidity and capital availability to support purchase of loans, contractual commitments and obligations (including repurchase obligations or other commitments to purchase loans), regulatory obligations to fund loans, and general strategic directives (such as with respect to product testing or supporting our Structured Program transactions, which include sponsoring asset-backed securitization transactions and Certificate Program transactions), and to support marketplace equilibrium across our platform; |
• | the impact of holding loans on and our ability to sell loans off our balance sheet; |
• | transaction fees or other revenue we expect to recognize after loans are issued by the issuing banks who originate loans facilitated through our platform; |
• | interest income on our loans invested in by the Company and the negative fair value adjustments on associated loans; |
• | our financial condition and performance, including the impact that management’s estimates have on our financial performance and the relationship between the interim period and full year results; |
• | our ability, and that of third-party vendors, to maintain service and quality expectations; |
• | capital expenditures; |
• | interest rate risk and credit performance associated with the outstanding principal balance of loans and other securities and their impact to investor returns and demand for our products; |
• | the impact of new accounting standards; |
• | the impact of pending litigation and regulatory investigations and inquiries; |
• | our compliance with applicable local, state and Federal laws, regulations and regulatory developments or court decisions affecting our business; |
• | our compliance with contractual obligations or restrictions; |
• | investor, borrower, platform and loan performance-related factors that may affect our revenue; |
• | the potential adoption rates and returns related to new products and services; |
• | the potential impact of macro-economic developments that could impact the credit performance of our loans, notes, certificates and secured borrowings, and influence borrower and investor behavior; |
• | the effectiveness of our cost structure simplification efforts and ability to control our cost structure; |
• | our ability to develop and maintain effective internal controls; |
• | our ability to recruit and retain quality employees to support current operations and future growth; |
• | our ability to successfully relocate people and services; |
• | the impact of expense initiatives; |
• | our ability to manage and repay our indebtedness; and |
• | other risk factors listed from time to time in reports we file with the SEC. |
September 30, 2020 | December 31, 2019 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash (1) | |||||||
Securities available for sale (includes $205,997 and $271,173 at amortized cost, $17,542 and $0 in allowance for credit losses, and $127,376 and $174,849 pledged as collateral at fair value, respectively) | |||||||
Loans held for investment at fair value (1) | |||||||
Loans held for investment by the Company at fair value (1) | |||||||
Loans held for sale by the Company at fair value (1) | |||||||
Accrued interest receivable (1) | |||||||
Property, equipment and software, net | |||||||
Operating lease assets | |||||||
Intangible assets, net | |||||||
Other assets (1) | |||||||
Total assets | $ | $ | |||||
Liabilities and Equity | |||||||
Accounts payable | $ | $ | |||||
Accrued interest payable (1) | |||||||
Operating lease liabilities | |||||||
Accrued expenses and other liabilities (1) | |||||||
Payable to investors | |||||||
Notes, certificates and secured borrowings at fair value (1) | |||||||
Payable to Structured Program note and certificate holders at fair value (1) | |||||||
Credit facilities and securities sold under repurchase agreements (1) | |||||||
Total liabilities | |||||||
Equity | |||||||
Series A Preferred stock, $0.01 par value; 1,200,000 shares authorized; 149,904 and 0 shares issued, respectively; 149,904 and 0 shares outstanding, respectively | |||||||
Common stock, $0.01 par value; 180,000,000 shares authorized; 76,511,394 and 89,218,797 shares issued, respectively; 76,511,394 and 88,757,406 shares outstanding, respectively | |||||||
Additional paid-in capital | |||||||
Accumulated deficit | ( | ) | ( | ) | |||
Treasury stock, at cost; 0 and 461,391 shares, respectively | ( | ) | |||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total equity | |||||||
Total liabilities and equity | $ | $ |
(1) | Includes amounts in consolidated variable interest entities (VIEs) presented separately in the table below. |
September 30, 2020 | December 31, 2019 | ||||||
Assets of consolidated VIEs, included in total assets above | |||||||
Restricted cash | $ | $ | |||||
Loans held for investment at fair value | |||||||
Loans held for investment by the Company at fair value | |||||||
Loans held for sale by the Company at fair value | |||||||
Accrued interest receivable | |||||||
Other assets | |||||||
Total assets of consolidated variable interest entities | $ | $ | |||||
Liabilities of consolidated VIEs, included in total liabilities above | |||||||
Accrued interest payable | $ | $ | |||||
Accrued expenses and other liabilities | |||||||
Notes, certificates and secured borrowings at fair value | |||||||
Payable to Structured Program note and certificate holders at fair value | |||||||
Credit facilities and securities sold under repurchase agreements | |||||||
Total liabilities of consolidated variable interest entities | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net revenue: | |||||||||||||||
Transaction fees | $ | $ | $ | $ | |||||||||||
Interest income | |||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net fair value adjustments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net interest income and fair value adjustments | ( | ) | ( | ) | ( | ) | |||||||||
Investor fees | |||||||||||||||
Gain on sales of loans | |||||||||||||||
Net investor revenue | |||||||||||||||
Other revenue | |||||||||||||||
Total net revenue | |||||||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | |||||||||||||||
Origination and servicing | |||||||||||||||
Engineering and product development | |||||||||||||||
Other general and administrative | |||||||||||||||
Total operating expenses | |||||||||||||||
Loss before income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income tax expense (benefit) | ( | ) | ( | ) | |||||||||||
Consolidated net loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Less: Income (Loss) attributable to noncontrolling interests | ( | ) | |||||||||||||
LendingClub net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Net loss per share attributable to common stockholders – Basic and Diluted (1) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||
Weighted-average common shares – Basic and Diluted (1) | |||||||||||||||
Net income (loss) per share attributable to preferred stockholders – Basic and Diluted (1) | $ | ( | ) | $ | $ | $ | |||||||||
Weighted-average common shares, as converted – Basic and Diluted (1) |
(1) | See “Notes to Condensed Consolidated Financial Statements – Note 4. Net Income (Loss) Per Share” and “Note 14. Stockholders' Equity” for additional information. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
LendingClub net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other comprehensive income (loss), before tax: | |||||||||||||||
Net unrealized gain (loss) on securities available for sale | ( | ) | ( | ) | |||||||||||
Other comprehensive income (loss), before tax | ( | ) | ( | ) | |||||||||||
Income tax effect | ( | ) | ( | ) | |||||||||||
Other comprehensive income (loss), net of tax | ( | ) | ( | ) | |||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||
LendingClub other comprehensive income (loss), net of tax | ( | ) | ( | ) | |||||||||||
LendingClub comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Comprehensive loss attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||
Total comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
LendingClub Corporation Stockholders | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total LendingClub Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net issuances under equity incentive plans, net of tax (1) | — | — | ( | ) | — | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||||||||
Net issuances of preferred stock in exchange for common stock | ( | ) | ( | ) | ( | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net unrealized gain (loss) on securities available for sale, net of tax | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||||||||||
LendingClub Corporation Stockholders | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total LendingClub Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net issuances under equity incentive plans, net of tax (1) | — | — | ( | ) | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||||||||
Net issuances of preferred stock in exchange for common stock (2) | ( | ) | ( | ) | — | — | — | ( | ) | ( | ) | — | ( | ) | ||||||||||||||||||||||||||||||
Retirement of treasury stock | — | — | — | ( | ) | ( | ) | ( | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net unrealized gain (loss) on securities available for sale, net of tax | — | — | — | — | — | — | — | ( | ) | — | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ |
(1) | Includes shares that were transferred to the Company to satisfy payment of all or a portion of the exercise price in connection with the exercise of stock options. |
(2) | Includes a payment of $ |
LendingClub Corporation Stockholders | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total LendingClub Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net issuances under equity incentive plans, net of tax (1) | — | — | ( | ) | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||||||||
Net unrealized gain on securities available for sale, net of tax | — | — | — | — | — | — | — | ( | ) | — | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Dividends paid and return of capital to noncontrolling interests | — | — | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||||||||||
LendingClub Corporation Stockholders | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total LendingClub Stockholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net issuances under equity incentive plans, net of tax (1) | — | — | ( | ) | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||||||||
ESPP purchase shares | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net unrealized gain on securities available for sale, net of tax | — | — | — | — | — | — | — | — | ( | ) | ||||||||||||||||||||||||||||||||||
Dividends paid and return of capital to noncontrolling interests | — | — | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | $ |
(1) |
Nine Months Ended September 30, | |||||||
2020 | 2019 | ||||||
Cash Flows from Operating Activities: | |||||||
Consolidated net loss | $ | ( | ) | $ | ( | ) | |
Adjustments to reconcile consolidated net loss to net cash provided by (used for) operating activities: | |||||||
Net fair value adjustments | |||||||
Change in fair value of loan servicing assets and liabilities | |||||||
Stock-based compensation, net | |||||||
Depreciation and amortization | |||||||
Gain on sales of loans | ( | ) | ( | ) | |||
Other, net | |||||||
Purchase of loans held for sale | ( | ) | ( | ) | |||
Principal payments received on loans held for sale | |||||||
Proceeds from whole loan sales and Structured Program transactions, net of underwriting fees and costs | |||||||
Net change in operating assets and liabilities: | |||||||
Accrued interest receivable, net | ( | ) | ( | ) | |||
Other assets | |||||||
Accounts payable | ( | ) | |||||
Accrued interest payable | ( | ) | ( | ) | |||
Accrued expenses and other liabilities | ( | ) | ( | ) | |||
Change in payable to investors (1) | ( | ) | ( | ) | |||
Net cash provided by (used for) operating activities | ( | ) | |||||
Cash Flows from Investing Activities: | |||||||
Purchases of loans | ( | ) | ( | ) | |||
Principal payments received on loans | |||||||
Proceeds from recoveries and sales of charged-off loans | |||||||
Purchases of securities available for sale | ( | ) | ( | ) | |||
Proceeds from sales, maturities, redemptions and paydowns of securities available for sale | |||||||
Proceeds from paydowns of asset-backed securities related to Structured Program transactions | |||||||
Other investing activities | |||||||
Purchases of property, equipment and software, net | ( | ) | ( | ) | |||
Net cash provided by investing activities | |||||||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of notes and certificates | |||||||
Repayments of secured borrowings | ( | ) | ( | ) | |||
Principal payments on and retirements of notes and certificates | ( | ) | ( | ) | |||
Payments on notes, certificates, and secured borrowings from recoveries/sales of related charged-off loans | ( | ) | ( | ) | |||
Principal payments on securitization notes | ( | ) | ( | ) | |||
Proceeds from issuance of notes and certificates from Structured Program transactions |
Nine Months Ended September 30, | |||||||
2020 | 2019 | ||||||
Proceeds from credit facilities and securities sold under repurchase agreements | |||||||
Principal payments on credit facilities and securities sold under repurchase agreements | ( | ) | ( | ) | |||
Payment for debt issuance costs | ( | ) | ( | ) | |||
Deemed dividend paid to preferred stockholder | ( | ) | |||||
Other financing activities | ( | ) | ( | ) | |||
Net cash used for financing activities | ( | ) | ( | ) | |||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $ | $ | ( | ) | |||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | $ | $ | |||||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | $ | |||||
Supplemental Cash Flow Information: | |||||||
Cash paid for interest | $ | $ | |||||
Cash paid for operating leases included in the measurement of lease liabilities | $ | $ | |||||
Non-cash investing activity: | |||||||
Net securities retained from Structured Program transactions | $ | $ | |||||
Accruals for property, equipment and software | $ | $ | |||||
Non-cash investing and financing activity: | |||||||
Transfer of whole loans to redeem certificates | $ | $ | |||||
Non-cash financing activity: | |||||||
Exchange of common stock for preferred stock | $ | $ | |||||
Derecognition of payable to securitization note and residual certificate holders held in consolidated VIE | $ | $ |
(1) | Change in payable to investors was previously presented as cash flows from financing activities. Prior period amounts have been reclassified to conform to the current period presentation. |
September 30, 2020 | December 31, 2019 | ||||||
Cash and cash equivalents | $ | $ | |||||
Restricted cash | |||||||
Total cash, cash equivalents and restricted cash | $ | $ |
Three Months Ended September 30, | |||||||
2020 | 2019 | ||||||
Transaction fees | $ | $ | |||||
Referral fees | |||||||
Total revenue from contracts with customers | $ | $ |
Nine Months Ended September 30, | |||||||
2020 | 2019 | ||||||
Transaction fees | $ | $ | |||||
Referral fees | |||||||
Total revenue from contracts with customers | $ | $ |
Three Months Ended September 30, | 2020 | 2019 | |||||||||
Common Stock | Preferred Stock (1)(2) | Common Stock | |||||||||
Net loss attributable to stockholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Weighted-average common shares – Basic and Diluted (2) | |||||||||||
Net loss per share attributable to stockholders – Basic and Diluted (2) | $ | ( | ) | $ | ( | ) | $ | ||||
Nine Months Ended September 30, | 2020 | 2019 | |||||||||
Common Stock | Preferred Stock (1)(2) | Common Stock | |||||||||
Allocation of undistributed LendingClub net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Deemed dividend | ( | ) | |||||||||
Net income (loss) attributable to stockholders | $ | ( | ) | $ | $ | ( | ) | ||||
Weighted-average common shares – Basic and Diluted (2) | |||||||||||
Net income (loss) per share attributable to stockholders – Basic and Diluted (2) | $ | ( | ) | $ | $ | ( | ) |
(1) | Presented on an as-converted basis. |
(2) | See “Note 2. Summary of Significant Accounting Policies” and “Note 14. Stockholders' Equity” for additional information. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Preferred stock | |||||||||||
Stock options | |||||||||||
RSUs and PBRSUs | |||||||||||
Total |
September 30, 2020 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||
Asset-backed senior securities (1)(2) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
CLUB Certificate asset-backed securities (1) | ( | ) | ( | ) | |||||||||||||||
Asset-backed subordinated securities (1) | ( | ) | ( | ) | |||||||||||||||
Commercial paper | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||
Other asset-backed securities | |||||||||||||||||||
Certificates of deposit | |||||||||||||||||||
Total securities available for sale | $ | $ | $ | ( | ) | $ | ( | ) | $ |
December 31, 2019 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Asset-backed senior securities (1)(2) | $ | $ | $ | ( | ) | $ | |||||||||
CLUB Certificate asset-backed securities (1) | ( | ) | |||||||||||||
Asset-backed subordinated securities (1) | ( | ) | |||||||||||||
Corporate debt securities | ( | ) | |||||||||||||
Certificates of deposit | |||||||||||||||
Other asset-backed securities | ( | ) | |||||||||||||
Commercial paper | |||||||||||||||
U.S. agency securities | |||||||||||||||
Total securities available for sale | $ | $ | $ | ( | ) | $ |
(1) | As of September 30, 2020 and December 31, 2019, $ |
(2) | As of September 30, 2020, and December 31, 2019, includes $ |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
September 30, 2020 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Asset-backed securities related to Structured Program transactions | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||
Corporate debt securities | |||||||||||||||||||||||
Other asset-backed securities | |||||||||||||||||||||||
Total securities with unrealized losses (1) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
December 31, 2019 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Asset-backed securities related to Structured Program transactions | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||
Corporate debt securities | ( | ) | ( | ) | |||||||||||||||||||
Other asset-backed securities | ( | ) | ( | ) | |||||||||||||||||||
Total securities with unrealized losses (1) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
(1) | The number of investment positions with unrealized losses at September 30, 2020 and December 31, 2019 totaled |
Allowance for Credit Losses | CLUB Certificate asset-backed securities | Asset-backed subordinated securities | Total | |||||||
Beginning balance as of June 30, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
Provision for credit loss expense | ||||||||||
Allowance arising from PCD financial assets | ( | ) | ( | ) | ||||||
Ending balance as of September 30, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |
Allowance for Credit Losses | CLUB Certificate asset-backed securities | Asset-backed subordinated securities | Total | |||||||
Beginning balance as of January 1, 2020 | $ | $ | $ | |||||||
Provision for credit loss expense | ( | ) | ( | ) | ( | ) | ||||
Allowance arising from PCD financial assets | ( | ) | ( | ) | ( | ) | ||||
Ending balance as of September 30, 2020 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | ||||||
Purchase price of PCD securities at acquisition | $ | $ | |||||
Allowance for credit losses on PCD securities at acquisition | |||||||
Par value of acquired PCD securities at acquisition | $ | $ |
Amortized Cost | Fair Value | ||||||
Within 1 year: | |||||||
Commercial paper | $ | $ | |||||
Corporate debt securities | |||||||
Certificates of deposit | |||||||
Other asset-backed securities | |||||||
Total | |||||||
After 1 year through 5 years: | |||||||
Other asset-backed securities | |||||||
Total | |||||||
Asset-backed securities related to Structured Program transactions | |||||||
Total securities available for sale | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Proceeds | $ | $ | $ | $ | |||||||||||
Gross realized gains | $ | $ | $ | $ | |||||||||||
Gross realized losses | $ | $ | $ | ( | ) | $ |
Loans Held for Investment | Notes, Certificates and Secured Borrowings | ||||||||||||||
September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | ||||||||||||
Aggregate principal balance outstanding | $ | $ | $ | $ | |||||||||||
Net fair value adjustments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Fair value | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||
Notes | $ | $ | |||||
Certificates | |||||||
Secured borrowings | |||||||
Total notes, certificates and secured borrowings | $ | $ |
Loans Invested in by the Company | |||||||||||||||||||||||
Loans Held for Investment | Loans Held for Sale | Total | |||||||||||||||||||||
September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | ||||||||||||||||||
Aggregate principal balance outstanding | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Net fair value adjustments | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Fair value | $ | $ | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||
Loans held for investment: | |||||||
Outstanding principal balance | $ | $ | |||||
Net fair value adjustments | ( | ) | ( | ) | |||
Fair value | $ | $ | |||||
Number of loans (not in thousands) | |||||||
Loans invested in by the Company: | |||||||
Outstanding principal balance | $ | $ | |||||
Net fair value adjustments | ( | ) | ( | ) | |||
Fair value | $ | $ | |||||
Number of loans (not in thousands) |
September 30, 2020 | Consolidated VIEs | Unconsolidated VIEs | Total | ||||||||
Assets | |||||||||||
Restricted cash | $ | $ | $ | ||||||||
Securities available for sale at fair value | |||||||||||
Loans held for investment at fair value | |||||||||||
Loans held for investment by the Company at fair value | |||||||||||
Loans held for sale by the Company at fair value | |||||||||||
Accrued interest receivable | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | $ | ||||||||
Liabilities | |||||||||||
Accrued interest payable | $ | $ | $ | ||||||||
Accrued expenses and other liabilities | |||||||||||
Notes, certificates and secured borrowings at fair value | |||||||||||
Payable to Structured Program note and certificate holders at fair value | |||||||||||
Credit facilities and securities sold under repurchase agreements | |||||||||||
Total liabilities | |||||||||||
Total net assets | $ | $ | $ |
December 31, 2019 | Consolidated VIEs | Unconsolidated VIEs | Total | ||||||||
Assets | |||||||||||
Restricted cash | $ | $ | $ | ||||||||
Securities available for sale at fair value | |||||||||||
Loans held for investment at fair value | |||||||||||
Loans held for investment by the Company at fair value | |||||||||||
Loans held for sale by the Company at fair value | |||||||||||
Accrued interest receivable | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | $ | ||||||||
Liabilities | |||||||||||
Accrued interest payable | $ | $ | $ | ||||||||
Accrued expenses and other liabilities | |||||||||||
Notes, certificates and secured borrowings at fair value | |||||||||||
Payable to Structured Program note and certificate holders at fair value | |||||||||||
Credit facilities and securities sold under repurchase agreements | |||||||||||
Total liabilities | |||||||||||
Total net assets | $ | $ | $ |
September 30, 2020 | Assets | Liabilities | Net Assets | ||||||||
LC Trust | $ | $ | ( | ) | $ | ||||||
Consolidated trusts | ( | ) | |||||||||
Warehouse credit facilities | ( | ) | |||||||||
Total consolidated VIEs | $ | $ | ( | ) | $ |
December 31, 2019 | Assets | Liabilities | Net Assets | ||||||||
LC Trust | $ | $ | ( | ) | $ | ||||||
Consolidated trusts | ( | ) | |||||||||
Warehouse credit facilities | ( | ) | |||||||||
Total consolidated VIEs | $ | $ | ( | ) | $ |
September 30, 2020 | Carrying Value | ||||||||||||||||||
Total VIE Assets | Securities Available for Sale | Accrued Interest Receivable | Other Assets | Net Assets | |||||||||||||||
Unconsolidated Trusts | $ | $ | $ | $ | $ | ||||||||||||||
Certificate Program | |||||||||||||||||||
Investment Fund | |||||||||||||||||||
Total unconsolidated VIEs | $ | $ | $ | $ | $ |
September 30, 2020 | Maximum Exposure to Loss | ||||||||||||||
Securities Available for Sale | Accrued Interest Receivable | Other Assets | Total Exposure | ||||||||||||
Unconsolidated Trusts | $ | $ | $ | $ | |||||||||||
Certificate Program | |||||||||||||||
Investment Fund | |||||||||||||||
Total unconsolidated VIEs | $ | $ | $ | $ |
December 31, 2019 | Carrying Value | ||||||||||||||||||
Total VIE Assets | Securities Available for Sale | Accrued Interest Receivable | Other Assets | Net Assets | |||||||||||||||
Unconsolidated Trusts | $ | $ | $ | $ | $ | ||||||||||||||
Certificate Program | |||||||||||||||||||
Investment Fund | |||||||||||||||||||
Total unconsolidated VIEs | $ | $ | $ | $ | $ |
December 31, 2019 | Maximum Exposure to Loss | ||||||||||||||
Securities Available for Sale | Accrued Interest Receivable | Other Assets | Total Exposure | ||||||||||||
Unconsolidated Trusts | $ | $ | $ | $ | |||||||||||
Certificate Program | |||||||||||||||
Investment Fund | |||||||||||||||
Total unconsolidated VIEs | $ | $ | $ | $ |
Three Months Ended September 30, | 2020 | 2019 | |||||||||||||
Unconsolidated Trusts | Unconsolidated Certificate Program Trusts | Unconsolidated Trusts | Unconsolidated Certificate Program Trusts | ||||||||||||
Principal derecognized from loans securitized or sold (1) | $ | $ | $ | $ | |||||||||||
Net gains (losses) recognized from loans securitized or sold | $ | $ | $ | $ | |||||||||||
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement (2) | $ | $ | $ | $ | |||||||||||
Cash proceeds from loans securitized or sold | $ | $ | $ | $ | |||||||||||
Cash proceeds from servicing and other administrative fees on loans securitized or sold | $ | $ | $ | $ | |||||||||||
Cash proceeds for interest received on senior securities and subordinated securities | $ | $ | $ | $ |
(1) | Includes non-cash purchase and sale of loans requested by investors to facilitate a Structured Program transaction during the third quarter of 2020. |
(2) | For Structured Program transactions, the Company retained asset-backed senior securities of $ |
Nine Months Ended September 30, | 2020 | 2019 | |||||||||||||
Unconsolidated Trusts | Unconsolidated Certificate Program Trusts | Unconsolidated Trusts | Unconsolidated Certificate Program Trusts | ||||||||||||
Principal derecognized from loans securitized or sold (1) | $ | $ | $ | $ | |||||||||||
Net gains (losses) recognized from loans securitized or sold | $ | ( | ) | $ | $ | $ | |||||||||
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement (2) | $ | $ | $ | $ | |||||||||||
Cash proceeds from loans securitized or sold | $ | $ | $ | $ | |||||||||||
Cash proceeds from servicing and other administrative fees on loans securitized or sold | $ | $ | $ | $ | |||||||||||
Cash proceeds for interest received on senior securities and subordinated securities | $ | $ | $ | $ |
(1) | Includes non-cash purchase and sale of loans requested by investors to facilitate a Structured Program transaction during the third quarter of 2020. |
(2) | For Structured Program transactions, the Company retained asset-backed senior securities of $ |
September 30, 2020 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Balance at Fair Value | |||||||||||
Assets: | |||||||||||||||
Loans held for investment | $ | $ | $ | $ | |||||||||||
Loans held for investment by the Company | |||||||||||||||
Loans held for sale by the Company | |||||||||||||||
Securities available for sale: | |||||||||||||||
Asset-backed senior securities and subordinated securities | |||||||||||||||
CLUB Certificate asset-backed securities | |||||||||||||||
Commercial paper | |||||||||||||||
Corporate debt securities | |||||||||||||||
Other asset-backed securities | |||||||||||||||
Certificates of deposit | |||||||||||||||
Total securities available for sale | |||||||||||||||
Servicing assets | |||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Notes, certificates and secured borrowings | $ | $ | $ | $ | |||||||||||
Payable to Structured Program note and certificate holders | |||||||||||||||
Deferred revenue | |||||||||||||||
Loan trailing fee liability | |||||||||||||||
Total liabilities | $ | $ | $ | $ |
December 31, 2019 | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Balance at Fair Value | |||||||||||
Assets: | |||||||||||||||
Loans held for investment | $ | $ | $ | $ | |||||||||||
Loans held for investment by the Company | |||||||||||||||
Loans held for sale by the Company | |||||||||||||||
Securities available for sale: | |||||||||||||||
Asset-backed senior securities and subordinated securities | |||||||||||||||
CLUB Certificate asset-backed securities | |||||||||||||||
Corporate debt securities | |||||||||||||||
Certificates of deposit | |||||||||||||||
Other asset-backed securities | |||||||||||||||
Commercial paper | |||||||||||||||
U.S. agency securities | |||||||||||||||
Total securities available for sale | |||||||||||||||
Servicing assets | |||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||
Liabilities: | |||||||||||||||
Notes, certificates and secured borrowings | $ | $ | $ | $ | |||||||||||
Payable to Structured Program note and certificate holders | |||||||||||||||
Loan trailing fee liability | |||||||||||||||
Total liabilities | $ | $ | $ | $ |
Loans Held for Investment, Notes, Certificates and Secured Borrowings | |||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Minimum | Maximum | Weighted- Average | Minimum | Maximum | Weighted- Average | ||||||||||||||||||
Discount rates | % | % | % | % | % | % | |||||||||||||||||
Net cumulative expected loss rates (1) | % | % | % | % | % | % | |||||||||||||||||
Cumulative expected prepayment rates (1) | % | % | % | % | % | % |
(1) | Expressed as a percentage of the original principal balance of the loan, note, certificate or secured borrowing. |
Loans Held for Investment | Loans Held for Sale | Notes, Certificates and Secured Borrowings | |||||||||||||||||||||||||||||||||
Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | |||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
Purchases | ( | ) | |||||||||||||||||||||||||||||||||
Transfers (to) from loans held for investment and/or loans held for sale | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||||||||
Sales | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Principal payments and retirements | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Charge-offs, net of recoveries | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Change in fair value recorded in earnings | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
Loans Held for Investment | Loans Held for Sale | Notes, Certificates and Secured Borrowings | |||||||||||||||||||||||||||||||||
Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | |||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
Purchases | ( | ) | |||||||||||||||||||||||||||||||||
Transfers (to) from loans held for investment and/or loans held for sale | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||||||||
Sales | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Principal payments and retirements | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Charge-offs, net of recoveries | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Change in fair value recorded in earnings | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ |
Loans Held for Investment | Loans Held for Sale | Notes, Certificates and Secured Borrowings | |||||||||||||||||||||||||||||||||
Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | |||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
Purchases | ( | ) | |||||||||||||||||||||||||||||||||
Transfers (to) from loans held for investment and/or loans held for sale | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||||||||
Sales | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Principal payments and retirements | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Charge-offs, net of recoveries | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Change in fair value recorded in earnings | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
Loans Held for Investment | Loans Held for Sale | Notes, Certificates and Secured Borrowings | |||||||||||||||||||||||||||||||||
Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | |||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||
Purchases | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Transfers (to) from loans held for investment and/or loans held for sale | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Issuances | |||||||||||||||||||||||||||||||||||
Sales | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Principal payments and retirements | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Charge-offs, net of recoveries | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Change in fair value recorded in earnings | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | ( | ) | $ |
Loans Invested in by the Company | |||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Minimum | Maximum | Weighted- Average | Minimum | Maximum | Weighted- Average | ||||||||||||||||||
Discount rates | % | % | % | % | % | % | |||||||||||||||||
Net cumulative expected loss rates (1) | % | % | % | % | % | % | |||||||||||||||||
Cumulative expected prepayment rates (1) | % | % | % | % | % | % |
(1) | Expressed as a percentage of the original principal balance of the loan. |
September 30, 2020 | December 31, 2019 | ||||||
Fair value of loans invested in by the Company | $ | $ | |||||
Expected weighted-average life (in years) | |||||||
Discount rates | |||||||
100 basis point increase | $ | ( | ) | $ | ( | ) | |
200 basis point increase | $ | ( | ) | $ | ( | ) | |
Expected credit loss rates on underlying loans | |||||||
10% adverse change | $ | ( | ) | $ | ( | ) | |
20% adverse change | $ | ( | ) | $ | ( | ) | |
Expected prepayment rates | |||||||
10% adverse change | $ | ( | ) | $ | ( | ) | |
20% adverse change | $ | ( | ) | $ | ( | ) |
Loans Held for Investment by the Company | Loans Held for Sale by the Company | Total Loans Invested in by the Company | ||||||||||||||||||||||||||||||||||
Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | ||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Purchases | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Transfers (to) from loans held for investment and/or loans held for sale | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Sales | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Principal payments and retirements | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Charge-offs, net of recoveries | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Change in fair value recorded in earnings | ||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Loans Held for Investment by the Company | Loans Held for Sale by the Company | Total Loans Invested in by the Company | ||||||||||||||||||||||||||||||||||
Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | ||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Purchases | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Transfers (to) from loans held for investment and/or loans held for sale | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Sales | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Principal payments and retirements | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Charge-offs, net of recoveries | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Change in fair value recorded in earnings | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Loans Held for Investment by the Company | Loans Held for Sale by the Company | Total Loans Invested in by the Company | ||||||||||||||||||||||||||||||||||
Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | ||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Purchases | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Transfers (to) from loans held for investment and/or loans held for sale | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Sales | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Principal payments and retirements | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Charge-offs, net of recoveries | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Change in fair value recorded in earnings | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Loans Held for Investment by the Company | Loans Held for Sale by the Company | Total Loans Invested in by the Company | ||||||||||||||||||||||||||||||||||
Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | Outstanding Principal Balance | Valuation Adjustment | Fair Value | ||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
Purchases | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||
Transfers (to) from loans held for investment and/or loans held for sale | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
Sales | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Principal payments and retirements | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Charge-offs, net of recoveries | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Change in fair value recorded in earnings | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Asset-Backed Securities Related to Structured Program Transactions | |||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Minimum | Maximum | Weighted- Average | Minimum | Maximum | Weighted- Average | ||||||||||||||||||
Discount rates | % | % | % | % | % | % | |||||||||||||||||
Net cumulative expected loss rates (1) | % | % | % | % | % | % | |||||||||||||||||
Cumulative expected prepayment rates (1) | % | % | % | % | % | % |
(1) | Expressed as a percentage of the outstanding collateral balance. |
September 30, 2020 | |||||||||||
Asset-Backed Securities Related to Structured Program Transactions | |||||||||||
Senior Securities | Subordinated Securities | CLUB Certificates | |||||||||
Fair value of interests held | $ | $ | $ | ||||||||
Expected weighted-average life (in years) | |||||||||||
Discount rates | |||||||||||
100 basis point increase | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
200 basis point increase | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Expected credit loss rates on underlying loans | |||||||||||
10% adverse change | $ | $ | ( | ) | $ | ( | ) | ||||
20% adverse change | $ | $ | ( | ) | $ | ( | ) | ||||
Expected prepayment rates | |||||||||||
10% adverse change | $ | $ | ( | ) | $ | ( | ) | ||||
20% adverse change | $ | $ | ( | ) | $ | ( | ) |
December 31, 2019 | |||||||||||
Asset-Backed Securities Related to Structured Program Transactions | |||||||||||
Senior Securities | Subordinated Securities | CLUB Certificates | |||||||||
Fair value of interests held | $ | $ | $ | ||||||||
Expected weighted-average life (in years) | |||||||||||
Discount rates | |||||||||||
100 basis point increase | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
200 basis point increase | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Expected credit loss rates on underlying loans | |||||||||||
10% adverse change | $ | $ | ( | ) | $ | ( | ) | ||||
20% adverse change | $ | $ | ( | ) | $ | ( | ) | ||||
Expected prepayment rates | |||||||||||
10% adverse change | $ | $ | ( | ) | $ | ( | ) | ||||
20% adverse change | $ | $ | ( | ) | $ | ( | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||
Fair value at beginning of period | $ | $ | $ | $ | ||||||||||
Additions | ||||||||||||||
Redemptions | ( | ) | ( | ) | ( | ) | ( | ) | ||||||
Transfers | ( | ) | ( | ) | ||||||||||
Cash received | ( | ) | ( | ) | ( | ) | ( | ) | ||||||
Change in unrealized gain (loss) | ( | ) | ||||||||||||
Accrued interest | ||||||||||||||
Provision for credit loss expense | ( | ) | ||||||||||||
Other-than-temporary impairment | ( | ) | ( | ) | ||||||||||
Fair value at end of period | $ | $ | $ | $ |
Servicing Assets | |||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Minimum | Maximum | Weighted- Average | Minimum | Maximum | Weighted- Average | ||||||||||||||||||
Discount rates | % | % | % | % | % | % | |||||||||||||||||
Net cumulative expected loss rates (1) | % | % | % | % | % | % | |||||||||||||||||
Cumulative expected prepayment rates (1) | % | % | % | % | % | % | |||||||||||||||||
Total market servicing rates (% per annum on outstanding principal balance) (2) | % | % | % | % | % | % |
(1) | Expressed as a percentage of the original principal balance of the loan. |
(2) | Includes collection fees estimated to be paid to a hypothetical third-party servicer. |
Servicing Assets | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Weighted-average market servicing rate assumptions | % | % | |||||
Change in fair value from: | |||||||
Servicing rate increase by 0.10% | $ | ( | ) | $ | ( | ) | |
Servicing rate decrease by 0.10% | $ | $ |
Servicing Assets | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Fair value of Servicing Assets | $ | $ | |||||
Discount rates | |||||||
100 basis point increase | $ | ( | ) | $ | ( | ) | |
200 basis point increase | $ | ( | ) | $ | ( | ) | |
Expected loss rates | |||||||
10% adverse change | $ | ( | ) | $ | ( | ) | |
20% adverse change | $ | ( | ) | $ | ( | ) | |
Expected prepayment rates | |||||||
10% adverse change | $ | ( | ) | $ | ( | ) | |
20% adverse change | $ | ( | ) | $ | ( | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Fair value at beginning of period | $ | $ | $ | $ | |||||||||||
Issuances (1) | |||||||||||||||
Change in fair value, included in investor fees | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Other net changes included in deferred revenue | ( | ) | ( | ) | |||||||||||
Fair value at end of period | $ | $ | $ | $ |
(1) | Represents the gains or losses on sales of the related loans. |
Loan Trailing Fee Liability | |||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Minimum | Maximum | Weighted- Average | Minimum | Maximum | Weighted- Average | ||||||||||||||||||
Discount rates | % | % | % | % | % | % | |||||||||||||||||
Net cumulative expected loss rates (1) | % | % | % | % | % | % | |||||||||||||||||
Cumulative expected prepayment rates (1) | % | % | % | % | % | % |
(1) | Expressed as a percentage of the original principal balance of the loan. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Fair value at beginning of period | $ | $ | $ | $ | |||||||||||
Issuances | |||||||||||||||
Cash payment of Loan Trailing Fee | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Change in fair value, included in Origination and Servicing | |||||||||||||||
Fair value at end of period | $ | $ | $ | $ |
September 30, 2020 | Carrying Amount | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Balance at Fair Value | ||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents (1) | $ | $ | $ | $ | $ | ||||||||||||||
Restricted cash (1) | |||||||||||||||||||
Servicer reserve receivable | |||||||||||||||||||
Deposits | |||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities: | |||||||||||||||||||
Accrued expenses and other liabilities | $ | $ | $ | $ | $ | ||||||||||||||
Accounts payable | |||||||||||||||||||
Payables to investors | |||||||||||||||||||
Credit facilities and securities sold under repurchase agreements | |||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ |
(1) | Carrying amount approximates fair value due to the short maturity of these financial instruments. |
December 31, 2019 | Carrying Amount | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Balance at Fair Value | ||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents (1) | $ | $ | $ | $ | $ | ||||||||||||||
Restricted cash (1) | |||||||||||||||||||
Servicer reserve receivable | |||||||||||||||||||
Deposits | |||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities: | |||||||||||||||||||
Accrued expenses and other liabilities | $ | $ | $ | $ | $ | ||||||||||||||
Accounts payable | |||||||||||||||||||
Payables to investors | |||||||||||||||||||
Credit facilities and securities sold under repurchase agreements | |||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ |
(1) | Carrying amount approximates fair value due to the short maturity of these financial instruments. |
September 30, 2020 | December 31, 2019 | ||||||
Internally developed software (1) | $ | $ | |||||
Leasehold improvements | |||||||
Computer equipment | |||||||
Purchased software | |||||||
Furniture and fixtures | |||||||
Construction in progress | |||||||
Total property, equipment and software | |||||||
Accumulated depreciation and amortization | ( | ) | ( | ) | |||
Total property, equipment and software, net | $ | $ |
(1) | Includes $ |
September 30, 2020 | December 31, 2019 | ||||||
Loan servicing assets, at fair value (1) | $ | $ | |||||
Accounts receivable | |||||||
Prepaid expenses | |||||||
Other investments | |||||||
Deferred financing costs | |||||||
Other | |||||||
Total other assets | $ | $ |
(1) | As of September 30, 2020 and December 31, 2019, loans underlying loan servicing rights had a total outstanding principal balance of $ |
September 30, 2020 | December 31, 2019 | ||||||
Transaction fee refund reserve | $ | $ | |||||
Contingent liabilities (1) | |||||||
Accrued expenses | |||||||
Accrued compensation | |||||||
Loan trailing fee liability, at fair value | |||||||
Deferred revenue | |||||||
Other | |||||||
Total accrued expenses and other liabilities | $ | $ |
(1) | See “Note 18. Commitments and Contingencies” for further information. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
RSUs and PBRSUs | $ | $ | $ | $ | |||||||||||
Stock options | |||||||||||||||
ESPP | |||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Sales and marketing | $ | $ | $ | $ | |||||||||||
Origination and servicing | |||||||||||||||
Engineering and product development | |||||||||||||||
Other general and administrative | |||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ |
Number of Units | Weighted- Average Grant Date Fair Value | |||||
Unvested at December 31, 2019 | $ | |||||
Granted | $ | |||||
Vested | ( | ) | $ | |||
Forfeited/expired | ( | ) | $ | |||
Unvested at September 30, 2020 | $ |
Number of Units | Weighted- Average Grant Date Fair Value | |||||
Unvested at December 31, 2019 | $ | |||||
Granted | $ | |||||
Vested | ( | ) | $ | |||
Forfeited/expired (1) | ( | ) | $ | |||
Unvested at September 30, 2020 | $ |
(1) | Primarily relates to the portion of PBRSUs granted in 2018 and 2019 that were unearned as a result of not achieving certain pre-established performance metrics during the performance period. |
ROU Assets and Lease Liabilities | September 30, 2020 | ||
Operating lease assets | $ | ||
Operating lease liabilities (1) | $ |
(1) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Net Lease Costs | Income Statement Classification | 2020 | 2019 | 2020 | 2019 | |||||||||||
Operating lease costs (1) | Other general and administrative expense | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Sublease revenue | Other revenue | |||||||||||||||
Net lease costs | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(1) | Includes variable lease costs of $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Non-cash operating activity: | |||||||||||||||
Leased assets obtained in exchange for new and amended operating lease liabilities (1) | $ | $ | $ | $ |
(1) | Represents non-cash activity and, accordingly, is not reflected in the Condensed Consolidated Statements of Cash Flows. Amount includes noncash remeasurements of the operating lease right-of-use asset. |
Operating Lease Payments | Sublease Revenue | Net | |||||||||
Remainder of 2020 | $ | $ | ( | ) | $ | ||||||
2021 | ( | ) | |||||||||
2022 | ( | ) | |||||||||
2023 | |||||||||||
2024 | |||||||||||
Thereafter | |||||||||||
Total lease payments (1) | $ | $ | ( | ) | $ | ||||||
Discount effect | |||||||||||
Present value of future minimum lease payments | $ |
(1) | As of |
Lease Term and Discount Rate | ||
Weighted-average remaining lease term (in years) | ||
Weighted-average discount rate | % |
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||
Sales and marketing | $ | ( | ) | $ | ||
Origination and servicing | ( | ) | ||||
Engineering and product development | ( | ) | ||||
Other general and administrative | ||||||
Total | $ | $ |
• | Total loan borrower performance is strong as of September 30, 2020. Repayment rates remain at pre-COVID-19 levels, and delinquency and roll rates (the percentage of borrowers who progress into later delinquency stages) are lower than historical averages. Newer vintages are displaying better credit performance compared to pre-COVID-19 vintages and lower enrollment rates into our Skip-a-Pay program. |
• | Performance among those borrowers enrolled in hardship plans is encouraging. Approximately 13% of borrowers have enrolled in a Payment Plan at some point during the life of their loan. Of those who have ever enrolled in a Payment Plan, 10% have paid their loan in full, 67% are making regular payments, 13% are on the same or another Payment Plan (with 10% making partial payments and 3% on a payment deferral program, which approximates 2% of the total loans on the platform), and 10% are either delinquent or have charged-off. Since the launch of the interest-only Payment Plan, the majority of borrowers either enrolling in a first payment plan or a subsequent payment plan are choosing the interest-only option, reflecting borrowers’ engagement and proactive steps to stay on track. |
September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||
Loan originations | $ | 584.1 | $ | 325.8 | $ | 2,521.5 | |||||
Loans purchased or pending purchase by the Company during the quarter | $ | 27.6 | $ | 18.9 | $ | 1,302.4 | |||||
LendingClub inventory (1) | $ | 9.0 | $ | 15.0 | $ | 510.8 | |||||
LendingClub inventory as a percentage of loan originations (1) | 2 | % | 5 | % | 20 | % |
(1) | LendingClub inventory reflects loans purchased or pending purchase by the Company during the period, excluding loans held by the Company through consolidated trusts, if applicable, and not yet sold as of the period end. |
• | the duration and impact of COVID-19; |
• | the impact of government stimulus programs; |
• | our ability to navigate adverse economic circumstances; |
• | investor demand for our loans; |
• | availability or the timing of the deployment of investment capital by investors; |
• | loan performance and return on investment; |
• | platform volume, pricing and balance; |
• | operational decisions and changes to effectuate strategy initiatives; |
• | market confidence in our data, controls, and processes; |
• | announcements and terms of resolution of governmental inquiries or private litigation; |
• | our ability to obtain or add bank functionality and a bank charter, through the acquisition of Radius or otherwise; |
• | the impact on the business from obtaining or adding bank functionality and bank charter; |
• | the mix of borrower products and corresponding transaction fees; |
• | regulatory or market factors which limit products on our platform or loan interest rates borrowers can pay; |
• | the availability and amount of new capital from pooled investment vehicles and managed accounts that typically deploy their capital at the start of a period; |
• | the amount of purchase limitations we can impose on larger investors as a way to maintain investor balance and fairness; |
• | the attractiveness of alternative opportunities for borrowers or investors, through changes in interest rates, transaction fees, terms, or risk profile; |
• | the responsiveness of applicants to our marketing efforts; |
• | expenditures on marketing initiatives in a period; |
• | the sufficiency of operational staff to process any manual portion of the loan applications in a timely manner; |
• | the responsiveness of borrowers to satisfy additional income or employment verification requirements related to their application; |
• | borrower withdrawal rates; |
• | the percentage distribution of loans between the whole and fractional loan platforms; |
• | platform system performance; |
• | seasonality in demand for our platform and services, which is generally lowest in the first quarter and also impacts the fourth quarter; |
• | determination to hold loans for purposes of subsequently distributing the loans through sale or Structured Program transactions; |
• | changes in the credit performance of loans or market interest rates; |
• | the success of our models to predict borrower risk levels and related investor demand; and |
• | other factors. |
Three Months Ended | Nine Months Ended September 30, | ||||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | 2020 | 2019 | |||||||||||||||
Loan originations | $ | 584,127 | $ | 325,765 | $ | 3,349,613 | $ | 3,431,389 | $ | 9,206,964 | |||||||||
Sales and marketing expense as a percent of loan originations | 1.23 | % | 2.68 | % | 2.28 | % | 1.91 | % | 2.30 | % | |||||||||
Net revenue | $ | 74,713 | $ | 43,869 | $ | 204,896 | $ | 238,788 | $ | 570,121 | |||||||||
Consolidated net loss | $ | (34,325 | ) | $ | (78,471 | ) | $ | (392 | ) | $ | (160,883 | ) | $ | (30,924 | ) | ||||
Diluted EPS attributable to common stockholders (1) | $ | (0.38 | ) | $ | (0.87 | ) | $ | 0.00 | $ | (2.35 | ) | $ | (0.36 | ) | |||||
Contribution (2) | $ | 53,384 | $ | 21,395 | $ | 105,789 | $ | 126,681 | $ | 291,033 | |||||||||
Contribution margin (2) | 71.5 | % | 48.8 | % | 51.6 | % | 53.1 | % | 51.0 | % | |||||||||
Adjusted EBITDA (2) | $ | 4,313 | $ | (27,619 | ) | $ | 40,021 | $ | (31,137 | ) | $ | 95,791 | |||||||
Adjusted EBITDA margin (2) | 5.8 | % | (63.0 | )% | 19.5 | % | (13.0 | )% | 16.8 | % | |||||||||
Adjusted net income (loss) (2) | $ | (23,079 | ) | $ | (54,252 | ) | $ | 7,951 | $ | (116,482 | ) | $ | (4,799 | ) | |||||
Adjusted EPS (1)(2) | $ | (0.25 | ) | $ | (0.60 | ) | $ | 0.09 | $ | (1.29 | ) | $ | (0.06 | ) |
(1) | See “Item 1. Financial Statements – Notes to Condensed Consolidated Financial Statements – Note 4. Net Income (Loss) Per Share” and “Note 14. Stockholders' Equity” for additional information. |
(2) | Represents non-GAAP financial measures. For more information regarding these measures and a reconciliation of these measures to the most comparable GAAP measures, see “Non-GAAP Financial Measures” below. |
Three Months Ended | |||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | |||||||||||||||
(in millions, except percentages) | Origination Volume | Weighted- Average Transaction Fee | Origination Volume | Weighted- Average Transaction Fee | Origination Volume | Weighted- Average Transaction Fee | |||||||||||
Personal loans – standard program | $ | 398.2 | 4.45 | % | $ | 221.6 | 1.28 | % | $ | 2,343.2 | 5.00 | % | |||||
Personal loans – custom program | 44.0 | 3.35 | % | 9.4 | N/M | 820.6 | 4.68 | % | |||||||||
Total personal loans | 442.2 | 4.34 | % | 231.0 | 0.21 | % | 3,163.8 | 4.92 | % | ||||||||
Other loans | 141.9 | 3.64 | % | 94.8 | 3.58 | % | 185.8 | 3.01 | % | ||||||||
Total | $ | 584.1 | 4.17 | % | $ | 325.8 | 1.19 | % | $ | 3,349.6 | 4.81 | % | |||||
Nine Months Ended | |||||||||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||||||||
(in millions, except percentages) | Origination Volume | Weighted-Average Transaction Fee | Origination Volume | Weighted-Average Transaction Fee | |||||||||||||
Personal loans – standard program | $ | 2,390.8 | 5.06 | % | $ | 6,445.9 | 5.04 | % | |||||||||
Personal loans – custom program | 625.9 | 5.00 | % | 2,156.2 | 4.74 | % | |||||||||||
Total personal loans | 3,016.7 | 5.05 | % | 8,602.1 | 4.96 | % | |||||||||||
Other loans | 414.7 | 2.95 | % | 604.9 | 3.63 | % | |||||||||||
Total | $ | 3,431.4 | 4.79 | % | $ | 9,207.0 | 4.87 | % |
Three Months Ended | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(in millions) | September 30, 2020 | June 30, 2020 | September 30, 2019 | 2020 | 2019 | ||||||||||||||||||||||||
Personal loan originations by loan grade – standard loan program: | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||
A | $ | 214.4 | 54 | % | $ | 105.7 | 48 | % | $ | 757.4 | 32 | % | $ | 940.1 | 39 | % | $ | 2,071.3 | 32 | % | |||||||||
B | 114.0 | 29 | % | 74.5 | 34 | % | 738.3 | 32 | % | 733.1 | 31 | % | 1,963.6 | 30 | % | ||||||||||||||
C | 69.8 | 17 | % | 38.4 | 17 | % | 523.3 | 22 | % | 465.5 | 19 | % | 1,485.0 | 23 | % | ||||||||||||||
D | — | — | % | 3.0 | 1 | % | 324.2 | 14 | % | 252.1 | 11 | % | 875.8 | 14 | % | ||||||||||||||
E | — | — | % | — | — | % | — | — | % | — | — | % | 50.0 | 1 | % | ||||||||||||||
F | — | — | % | — | — | % | — | — | % | — | — | % | 0.2 | — | % | ||||||||||||||
Total | $ | 398.2 | 100 | % | $ | 221.6 | 100 | % | $ | 2,343.2 | 100 | % | $ | 2,390.8 | 100 | % | $ | 6,445.9 | 100 | % |
Three Months Ended | Change (%) | ||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | Q3 2020 vs Q3 2019 | Q3 2020 vs Q2 2020 | |||||||||||||
Net revenue: | |||||||||||||||||
Transaction fees | $ | 24,372 | $ | 3,874 | $ | 161,205 | (85 | )% | N/M | ||||||||
Interest income | 46,773 | 60,560 | 77,820 | (40 | )% | (23 | )% | ||||||||||
Interest expense | (32,440 | ) | (37,766 | ) | (55,060 | ) | (41 | )% | (14 | )% | |||||||
Net fair value adjustments | (696 | ) | (6,378 | ) | (31,628 | ) | (98 | )% | (89 | )% | |||||||
Net interest income and fair value adjustments | 13,637 | 16,416 | (8,868 | ) | N/M | (17 | )% | ||||||||||
Investor fees | 25,850 | 19,315 | 30,271 | (15 | )% | 34 | % | ||||||||||
Gain on sales of loans | 7,739 | 1,724 | 18,305 | (58 | )% | N/M | |||||||||||
Net investor revenue | 47,226 | 37,455 | 39,708 | 19 | % | 26 | % | ||||||||||
Other revenue | 3,115 | 2,540 | 3,983 | (22 | )% | 23 | % | ||||||||||
Total net revenue | 74,713 | 43,869 | 204,896 | (64 | )% | 70 | % | ||||||||||
Operating expenses: (1) | |||||||||||||||||
Sales and marketing | 7,201 | 8,723 | 76,255 | (91 | )% | (17 | )% | ||||||||||
Origination and servicing | 15,595 | 17,830 | 27,996 | (44 | )% | (13 | )% | ||||||||||
Engineering and product development | 31,984 | 39,167 | 41,455 | (23 | )% | (18 | )% | ||||||||||
Other general and administrative | 54,332 | 56,620 | 59,485 | (9 | )% | (4 | )% | ||||||||||
Total operating expenses | 109,112 | 122,340 | 205,191 | (47 | )% | (11 | )% | ||||||||||
Loss before income tax expense | (34,399 | ) | (78,471 | ) | (295 | ) | N/M | (56 | )% | ||||||||
Income tax expense (benefit) | (74 | ) | — | 97 | (176 | )% | N/M | ||||||||||
Consolidated net loss | $ | (34,325 | ) | $ | (78,471 | ) | $ | (392 | ) | N/M | (56 | )% | |||||
Less: Income (Loss) attributable to noncontrolling interests | — | — | (9 | ) | (100 | )% | — | % | |||||||||
LendingClub net loss | $ | (34,325 | ) | $ | (78,471 | ) | $ | (383 | ) | N/M | (56 | )% | |||||
N/M – Not meaningful | |||||||||||||||||
(1) Includes stock-based compensation expense as follows: | |||||||||||||||||
Three Months Ended | Change (%) | ||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | Q3 2020 vs Q3 2019 | Q3 2020 vs Q2 2020 | |||||||||||||
Sales and marketing | $ | 880 | $ | 731 | $ | 1,505 | (42 | )% | 20 | % | |||||||
Origination and servicing | 721 | 722 | 852 | (15 | )% | — | % | ||||||||||
Engineering and product development | 3,295 | 2,668 | 4,737 | (30 | )% | 24 | % | ||||||||||
Other general and administrative | 10,226 | 10,083 | 11,001 | (7 | )% | 1 | % | ||||||||||
Total stock-based compensation expense | $ | 15,122 | $ | 14,204 | $ | 18,095 | (16 | )% | 6 | % |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | Change (%) | |||||||||
Net revenue: | |||||||||||
Transaction fees | $ | 164,489 | $ | 448,809 | (63 | )% | |||||
Interest income | 176,744 | 270,554 | (35 | )% | |||||||
Interest expense | (114,447 | ) | (197,336 | ) | (42 | )% | |||||
Net fair value adjustments | (108,812 | ) | (102,331 | ) | 6 | % | |||||
Net interest income and fair value adjustments | (46,515 | ) | (29,113 | ) | 60 | % | |||||
Investor fees | 86,924 | 94,274 | (8 | )% | |||||||
Gain on sales of loans | 23,724 | 47,343 | (50 | )% | |||||||
Net investor revenue | 64,133 | 112,504 | (43 | )% | |||||||
Other revenue | 10,166 | 8,808 | 15 | % | |||||||
Total net revenue | 238,788 | 570,121 | (58 | )% | |||||||
Operating expenses: (1) | |||||||||||
Sales and marketing | 65,708 | 212,201 | (69 | )% | |||||||
Origination and servicing | 54,419 | 81,200 | (33 | )% | |||||||
Engineering and product development | 109,861 | 127,300 | (14 | )% | |||||||
Other general and administrative | 169,438 | 180,685 | (6 | )% | |||||||
Total operating expenses | 399,426 | 601,386 | (34 | )% | |||||||
Loss before income tax expense | (160,638 | ) | (31,265 | ) | N/M | ||||||
Income tax expense (benefit) | 245 | (341 | ) | (172 | )% | ||||||
Consolidated net loss | $ | (160,883 | ) | $ | (30,924 | ) | N/M | ||||
Less: Income (Loss) attributable to noncontrolling interests | — | 55 | (100 | )% | |||||||
LendingClub net loss | $ | (160,883 | ) | $ | (30,979 | ) | N/M | ||||
N/M – Not meaningful | |||||||||||
(1) Includes stock-based compensation expense as follows: | |||||||||||
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | Change (%) | |||||||||
Sales and marketing | $ | 3,274 | $ | 4,616 | (29 | )% | |||||
Origination and servicing | 2,079 | 2,622 | (21 | )% | |||||||
Engineering and product development | 10,578 | 15,443 | (32 | )% | |||||||
Other general and administrative | 31,524 | 34,217 | (8 | )% | |||||||
Total stock-based compensation expense | $ | 47,455 | $ | 56,898 | (17 | )% |
Three Months Ended | Change (%) | ||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | Q3 2020 vs Q3 2019 | Q3 2020 vs Q2 2020 | |||||||||||||
Net revenue: | |||||||||||||||||
Transaction fees | $ | 24,372 | $ | 3,874 | $ | 161,205 | (85 | )% | N/M | ||||||||
Interest income | 46,773 | 60,560 | 77,820 | (40 | )% | (23 | )% | ||||||||||
Interest expense | (32,440 | ) | (37,766 | ) | (55,060 | ) | (41 | )% | (14 | )% | |||||||
Net fair value adjustments | (696 | ) | (6,378 | ) | (31,628 | ) | (98 | )% | (89 | )% | |||||||
Net interest income and fair value adjustments | 13,637 | 16,416 | (8,868 | ) | N/M | (17 | )% | ||||||||||
Investor fees | 25,850 | 19,315 | 30,271 | (15 | )% | 34 | % | ||||||||||
Gain on sales of loans | 7,739 | 1,724 | 18,305 | (58 | )% | N/M | |||||||||||
Net investor revenue | 47,226 | 37,455 | 39,708 | 19 | % | 26 | % | ||||||||||
Other revenue | 3,115 | 2,540 | 3,983 | (22 | )% | 23 | % | ||||||||||
Total net revenue | $ | 74,713 | $ | 43,869 | $ | 204,896 | (64 | )% | 70 | % |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | Change (%) | ||||||||||||
Net revenue: | ||||||||||||||
Transaction fees | $ | 164,489 | $ | 448,809 | (63 | )% | ||||||||
Interest income | 176,744 | 270,554 | (35 | )% | ||||||||||
Interest expense | (114,447 | ) | (197,336 | ) | (42 | )% | ||||||||
Net fair value adjustments | (108,812 | ) | (102,331 | ) | 6 | % | ||||||||
Net interest income and fair value adjustments | (46,515 | ) | (29,113 | ) | 60 | % | ||||||||
Investor fees | 86,924 | 94,274 | (8 | )% | ||||||||||
Gain on sales of loans | 23,724 | 47,343 | (50 | )% | ||||||||||
Net investor revenue | 64,133 | 112,504 | (43 | )% | ||||||||||
Other revenue | 10,166 | 8,808 | 15 | % | ||||||||||
Total net revenue | $ | 238,788 | $ | 570,121 | (58 | )% |
Three Months Ended | Change (%) | ||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | Q3 2020 vs Q3 2019 | Q3 2020 vs Q2 2020 | |||||||||||||
Loans invested in by the Company, securities available for sale, cash, cash equivalents and restricted cash, and debt: | |||||||||||||||||
Interest income: | |||||||||||||||||
Loans held for investment and held for sale by the Company at fair value | $ | 16,864 | $ | 27,361 | $ | 24,441 | (31 | )% | (38 | )% | |||||||
Securities available for sale | 2,754 | 3,397 | 4,033 | (32 | )% | (19 | )% | ||||||||||
Cash, cash equivalents and restricted cash | 38 | 102 | 1,523 | (98 | )% | (63 | )% | ||||||||||
Total | 19,656 | 30,860 | 29,997 | (34 | )% | (36 | )% | ||||||||||
Interest expense: | |||||||||||||||||
Credit facilities and securities sold under repurchase agreements | (3,316 | ) | (5,850 | ) | (7,046 | ) | (53 | )% | (43 | )% | |||||||
Securitization notes and certificates | (2,007 | ) | (2,216 | ) | (191 | ) | N/M | (9 | )% | ||||||||
Total | (5,323 | ) | (8,066 | ) | (7,237 | ) | (26 | )% | (34 | )% | |||||||
Net interest income | 14,333 | 22,794 | 22,760 | (37 | )% | (37 | )% | ||||||||||
Net fair value adjustments | (696 | ) | (6,378 | ) | (31,628 | ) | (98 | )% | (89 | )% | |||||||
Net interest income and fair value adjustments | $ | 13,637 | $ | 16,416 | $ | (8,868 | ) | N/M | (17 | )% | |||||||
Loans, notes, certificates and secured borrowings: | |||||||||||||||||
Interest income: | |||||||||||||||||
Loans held for investment at fair value | $ | 27,117 | $ | 29,700 | $ | 47,823 | (43 | )% | (9 | )% | |||||||
Interest expense: | |||||||||||||||||
Notes, certificates and secured borrowings | (27,117 | ) | (29,700 | ) | (47,823 | ) | (43 | )% | (9 | )% | |||||||
Net interest income | $ | — | $ | — | $ | — | — | % | — | % | |||||||
Total net interest income and fair value adjustments: | |||||||||||||||||
Interest income | $ | 46,773 | $ | 60,560 | $ | 77,820 | (40 | )% | (23 | )% | |||||||
Interest expense | (32,440 | ) | (37,766 | ) | (55,060 | ) | (41 | )% | (14 | )% | |||||||
Net fair value adjustments | (696 | ) | (6,378 | ) | (31,628 | ) | (98 | )% | (89 | )% | |||||||
Net interest income and fair value adjustments | $ | 13,637 | $ | 16,416 | $ | (8,868 | ) | N/M | (17 | )% |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | Change (%) | ||||||||||||
Loans invested in by the Company, securities available for sale, cash, cash equivalents and restricted cash, and debt: | ||||||||||||||
Interest income: | ||||||||||||||
Loans held for investment and held for sale by the Company at fair value | $ | 73,600 | $ | 81,455 | (10 | )% | ||||||||
Securities available for sale | 9,930 | 10,604 | (6 | )% | ||||||||||
Cash, cash equivalents and restricted cash | 1,021 | 4,967 | (79 | )% | ||||||||||
Total | 84,551 | 97,026 | (13 | )% | ||||||||||
Interest expense: | ||||||||||||||
Credit facilities and securities sold under repurchase agreements | (16,704 | ) | (19,691 | ) | (15 | )% | ||||||||
Securitization notes and certificates | (5,550 | ) | (4,117 | ) | 35 | % | ||||||||
Total | (22,254 | ) | (23,808 | ) | (7 | )% | ||||||||
Net interest income | 62,297 | 73,218 | (15 | )% | ||||||||||
Net fair value adjustments | (108,812 | ) | (102,331 | ) | 6 | % | ||||||||
Net interest income and fair value adjustments | $ | (46,515 | ) | $ | (29,113 | ) | 60 | % | ||||||
Loans, notes, certificates and secured borrowings: | ||||||||||||||
Interest income: | ||||||||||||||
Loans held for investment at fair value | $ | 92,193 | $ | 173,528 | (47 | )% | ||||||||
Interest expense: | ||||||||||||||
Notes, certificates and secured borrowings | (92,193 | ) | (173,528 | ) | (47 | )% | ||||||||
Net interest income | $ | — | $ | — | — | % | ||||||||
Total net interest income and fair value adjustments: | ||||||||||||||
Interest income | $ | 176,744 | $ | 270,554 | (35 | %) | ||||||||
Interest expense | (114,447 | ) | (197,336 | ) | (42 | %) | ||||||||
Net fair value adjustments | (108,812 | ) | (102,331 | ) | 6 | % | ||||||||
Net interest income and fair value adjustments | $ | (46,515 | ) | $ | (29,113 | ) | 60 | % |
Outstanding Average Balances for Three Months Ended | Change (%) | ||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | Q3 2020 vs Q3 2019 | Q3 2020 vs Q2 2020 | |||||||||||||
Cash, cash equivalents and restricted cash | $ | 522,919 | $ | 458,850 | $ | 474,023 | 10 | % | 14 | % | |||||||
Loans held for investment by the Company | $ | 70,611 | $ | 79,464 | $ | 6,095 | N/M | (11 | )% | ||||||||
Loans held for sale by the Company | $ | 425,351 | $ | 773,513 | $ | 659,877 | (36 | )% | (45 | )% | |||||||
Securities available for sale | $ | 203,246 | $ | 232,405 | $ | 236,724 | (14 | )% | (13 | )% | |||||||
Credit facilities and securities sold under repurchase agreements | $ | 303,889 | $ | 582,967 | $ | 472,411 | (36 | )% | (48 | )% | |||||||
Securitization notes and certificates | $ | 183,122 | $ | 197,851 | $ | 4,224 | N/M | (7 | )% | ||||||||
Loans held for investment | $ | 801,418 | $ | 920,083 | $ | 1,458,732 | (45 | )% | (13 | )% | |||||||
Notes, certificates and secured borrowings | $ | 801,418 | $ | 920,115 | $ | 1,458,732 | (45 | )% | (13 | )% |
Outstanding Average Balances for Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | Change (%) | ||||||||||||
Cash, cash equivalents and restricted cash | $ | 488,233 | $ | 520,495 | (6 | )% | ||||||||
Loans held for investment by the Company | $ | 70,453 | $ | 6,102 | N/M | |||||||||
Loans held for sale by the Company | $ | 647,790 | $ | 717,797 | (10 | )% | ||||||||
Securities available for sale | $ | 236,736 | $ | 209,010 | 13 | % | ||||||||
Credit facilities and securities sold under repurchase agreements | $ | 483,645 | $ | 419,268 | 15 | % | ||||||||
Securitization notes and certificates | $ | 163,472 | $ | 122,709 | 33 | % | ||||||||
Loans held for investment | $ | 931,145 | $ | 1,685,684 | (45 | )% | ||||||||
Notes, certificates and secured borrowings | $ | 931,128 | $ | 1,689,072 | (45 | )% |
Three Months Ended | Change (%) | ||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | Q3 2020 vs Q3 2019 | Q3 2020 vs Q2 2020 | |||||||||||||
Investor Fees: | |||||||||||||||||
Whole loans sold | $ | 22,191 | $ | 15,607 | $ | 24,318 | (9 | )% | 42 | % | |||||||
Notes, certificates and secured borrowings | 3,659 | 3,708 | 5,953 | (39 | )% | (1 | )% | ||||||||||
Total | $ | 25,850 | $ | 19,315 | $ | 30,271 | (15 | )% | 34 | % | |||||||
Outstanding Principal Balance of Loans Serviced On Our Platform (in millions)(1): | |||||||||||||||||
Whole loans sold | $ | 11,249 | $ | 12,421 | $ | 13,509 | (17 | )% | (9 | )% | |||||||
Notes, certificates and secured borrowings | 756 | 851 | 1,317 | (43 | )% | (11 | )% | ||||||||||
Total excluding loans invested in by the Company | $ | 12,005 | $ | 13,272 | $ | 14,826 | (19 | )% | (10 | )% | |||||||
Loans invested in by the Company | 262 | 690 | 696 | (62 | )% | (62 | )% | ||||||||||
Total | $ | 12,267 | $ | 13,962 | $ | 15,522 | (21 | )% | (12 | )% |
Nine Months Ended September 30, | ||||||||||
2020 | 2019 | Change (%) | ||||||||
Investor Fees: | ||||||||||
Whole loans sold | $ | 74,653 | $ | 74,829 | — | % | ||||
Notes, certificates and secured borrowings | 12,271 | 19,445 | (37 | )% | ||||||
Total | $ | 86,924 | $ | 94,274 | (8 | )% | ||||
Outstanding Principal Balance of Loans Serviced On Our Platform (in millions)(1): | ||||||||||
Whole loans sold | $ | 11,249 | $ | 13,509 | (17 | )% | ||||
Notes, certificates and secured borrowings | 756 | 1,317 | (43 | )% | ||||||
Total excluding loans invested in by the Company | $ | 12,005 | $ | 14,826 | (19 | )% | ||||
Loans invested in by the Company | 262 | 696 | (62 | )% | ||||||
Total | $ | 12,267 | $ | 15,522 | (21 | )% |
(1) | As of the end of each respective period. |
Three Months Ended | Change (%) | |||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | Q3 2020 vs Q3 2019 | Q3 2020 vs Q2 2020 | ||||||||||||||
Sublease revenue | $ | 1,538 | $ | 1,537 | $ | 1,175 | 31 | % | — | % | ||||||||
Referral revenue | 1,264 | 625 | 1,596 | (21 | )% | 102 | % | |||||||||||
Other | 313 | 378 | 1,212 | (74 | )% | (17 | )% | |||||||||||
Other revenue | $ | 3,115 | $ | 2,540 | $ | 3,983 | (22 | )% | 23 | % | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2020 | 2019 | Change (%) | ||||||||||||||||
Sublease revenue | $ | 4,609 | $ | 3,198 | 44 | % | ||||||||||||
Referral revenue | 3,503 | 3,619 | (3 | )% | ||||||||||||||
Other | 2,054 | 1,991 | 3 | % | ||||||||||||||
Other revenue | $ | 10,166 | $ | 8,808 | 15 | % |
Three Months Ended | Change (%) | |||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | Q3 2020 vs Q3 2019 | Q3 2020 vs Q2 2020 | ||||||||||||||
Sales and marketing | $ | 7,201 | $ | 8,723 | $ | 76,255 | (91 | )% | (17 | )% | ||||||||
Origination and servicing | 15,595 | 17,830 | 27,996 | (44 | )% | (13 | )% | |||||||||||
Engineering and product development | 31,984 | 39,167 | 41,455 | (23 | )% | (18 | )% | |||||||||||
Other general and administrative | 54,332 | 56,620 | 59,485 | (9 | )% | (4 | )% | |||||||||||
Total operating expenses | $ | 109,112 | $ | 122,340 | $ | 205,191 | (47 | )% | (11 | )% | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2020 | 2019 | Change (%) | ||||||||||||||||
Sales and marketing | $ | 65,708 | $ | 212,201 | (69 | )% | ||||||||||||
Origination and servicing | 54,419 | 81,200 | (33 | )% | ||||||||||||||
Engineering and product development | 109,861 | 127,300 | (14 | )% | ||||||||||||||
Other general and administrative | 169,438 | 180,685 | (6 | )% | ||||||||||||||
Total operating expenses | $ | 399,426 | $ | 601,386 | (34 | )% |
• | Other companies, including companies in our industry, may calculate these measures differently, which may reduce their usefulness as a comparative measure. |
• | Although depreciation, impairment and amortization are non-cash charges, the assets being depreciated, impaired and amortized may have to be replaced in the future and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements. |
• | These measures do not reflect tax payments that may represent a reduction in cash available to us. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
Total net revenue | $ | 74,713 | $ | 43,869 | $ | 204,896 | $ | 238,788 | $ | 570,121 | |||||||||
Sales and marketing expense | 7,201 | 8,723 | 76,255 | 65,708 | 212,201 | ||||||||||||||
Origination and servicing expense | 15,595 | 17,830 | 27,996 | 54,419 | 81,200 | ||||||||||||||
Total direct expenses | 22,796 | 26,553 | 104,251 | 120,127 | 293,401 | ||||||||||||||
Cost structure simplification expense (1) | — | — | 2,778 | 175 | 7,130 | ||||||||||||||
Restructuring costs (2) | (142 | ) | 2,285 | — | 2,143 | — | |||||||||||||
Other items (2) | 8 | 341 | — | 349 | — | ||||||||||||||
Stock-based compensation (2) | 1,601 | 1,453 | 2,357 | 5,353 | 7,238 | ||||||||||||||
Income attributable to noncontrolling interests | — | — | 9 | — | (55 | ) | |||||||||||||
Contribution | $ | 53,384 | $ | 21,395 | $ | 105,789 | $ | 126,681 | $ | 291,033 | |||||||||
Contribution margin | 71.5 | % | 48.8 | % | 51.6 | % | 53.1 | % | 51.0 | % |
(1) | Contribution excludes the portion of personnel-related expense associated with establishing a site in the Salt Lake City area that is included in the “Sales and marketing” and “Origination and servicing” expense categories. |
(2) | Contribution excludes the portion of expenses included in the “Sales and marketing” and “Origination and servicing” expense categories. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
LendingClub net loss | $ | (34,325 | ) | $ | (78,471 | ) | $ | (383 | ) | $ | (160,883 | ) | $ | (30,979 | ) | ||||
Engineering and product development expense | 31,984 | 39,167 | 41,455 | 109,861 | 127,300 | ||||||||||||||
Other general and administrative expense | 54,332 | 56,620 | 59,485 | 169,438 | 180,685 | ||||||||||||||
Cost structure simplification expense (1) | — | — | 2,778 | 175 | 7,130 | ||||||||||||||
Restructuring costs (2) | (142 | ) | 2,285 | — | 2,143 | — | |||||||||||||
Other items (2) | 8 | 341 | — | 349 | — | ||||||||||||||
Stock-based compensation expense (2) | 1,601 | 1,453 | 2,357 | 5,353 | 7,238 | ||||||||||||||
Income tax expense (benefit) | (74 | ) | — | 97 | 245 | (341 | ) | ||||||||||||
Contribution | $ | 53,384 | $ | 21,395 | $ | 105,789 | $ | 126,681 | $ | 291,033 | |||||||||
Total net revenue | $ | 74,713 | $ | 43,869 | $ | 204,896 | $ | 238,788 | $ | 570,121 | |||||||||
Contribution margin | 71.5 | % | 48.8 | % | 51.6 | % | 53.1 | % | 51.0 | % |
(1) | Contribution excludes the portion of personnel-related expenses associated with establishing a site in the Salt Lake City area that are included in the “Sales and marketing” and “Origination and servicing” expense categories. |
(2) | Contribution excludes the portion of expenses included in the “Sales and marketing” and “Origination and servicing” expense categories. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
LendingClub net loss | $ | (34,325 | ) | $ | (78,471 | ) | $ | (383 | ) | $ | (160,883 | ) | $ | (30,979 | ) | ||||
Cost structure simplification expense (1) | — | — | 3,443 | 228 | 9,649 | ||||||||||||||
Legal, regulatory and other expense related to legacy issues (2) | 6,120 | 4,354 | 4,142 | 14,950 | 15,078 | ||||||||||||||
Acquisition and related expenses (3) | 4,373 | 456 | — | 8,440 | — | ||||||||||||||
Restructuring costs (4) | 753 | 17,036 | — | 17,789 | — | ||||||||||||||
Other items (5) | — | 2,373 | 749 | 2,994 | 1,453 | ||||||||||||||
Adjusted net loss | (23,079 | ) | (54,252 | ) | 7,951 | (116,482 | ) | (4,799 | ) | ||||||||||
Depreciation and impairment expense: | |||||||||||||||||||
Engineering and product development | 10,198 | 10,177 | 11,464 | 30,798 | 36,675 | ||||||||||||||
Other general and administrative | 1,394 | 1,480 | 1,569 | 4,477 | 4,707 | ||||||||||||||
Amortization of intangible assets | 752 | 772 | 845 | 2,370 | 2,651 | ||||||||||||||
Stock-based compensation expense | 15,122 | 14,204 | 18,095 | 47,455 | 56,898 | ||||||||||||||
Income tax expense (benefit) | (74 | ) | — | 97 | 245 | (341 | ) | ||||||||||||
Adjusted EBITDA | $ | 4,313 | $ | (27,619 | ) | $ | 40,021 | $ | (31,137 | ) | $ | 95,791 | |||||||
Total net revenue | $ | 74,713 | $ | 43,869 | $ | 204,896 | $ | 238,788 | $ | 570,121 | |||||||||
Adjusted EBITDA margin | 5.8 | % | (63.0 | )% | 19.5 | % | (13.0 | )% | 16.8 | % |
(1) | Includes personnel-related expenses associated with establishing a site in the Salt Lake City area. These expenses are included in “Sales and marketing,” “Origination and servicing,” “Engineering and product development” and “Other general and administrative” expense on the Company’s Condensed Consolidated Statements of Operations. In the first half of 2019, also includes external advisory fees which are included in “Other general and administrative” expense on the Company’s Condensed Consolidated Statements of Operations. |
(2) | Consists of legacy legal expenses, which are included in “Other general and administrative” expense on the Company’s Condensed Consolidated Statements of Operations and expense related to the dissolution of certain private funds managed by LCAM, which is included in “Net fair value adjustments” on the Company’s Condensed Consolidated Statements of Operations. For the first nine months of 2019, also includes expense related to the termination of a legacy contract, which is included in “Other general and administrative” expense on the Company’s Condensed Consolidated Statements of Operations. |
(3) | Represents costs related to the acquisition of Radius. |
(5) | In the second quarter and first nine months of 2020, includes expenses related to certain non-legacy litigation and regulatory matters, which are included in “Other general and administrative” expense on the Company’s Condensed Consolidated Statements of Operations, and one-time expenses resulting from COVID-19, which are included in “Sales and marketing,” “Origination and servicing,” “Engineering and product development” and “Other general and administrative” expense on the Company’s Condensed Consolidated Statements of Operations. In 2019, includes expenses related to certain non-legacy litigation and regulatory matters. The first nine months of 2019 also include a gain on sale of our small business operating segment. Both of these are included in “Other general and administrative” expense on the Company’s Condensed Consolidated Statements of Operations. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
Common and Preferred Stock (1)(2) | Common and Preferred Stock (1)(2) | Common Stock | Common and Preferred Stock (1)(2) | Common Stock | |||||||||||||||
Adjusted net loss attributable to stockholders | $ | (23,079 | ) | $ | (54,252 | ) | $ | 7,951 | $ | (116,482 | ) | (4,799 | ) | ||||||
Weighted-average shares – diluted (3) | 90,901,870 | 89,866,880 | 87,588,495 | 89,955,702 | 86,849,388 | ||||||||||||||
Weighted-average other dilutive equity awards | — | — | — | — | — | ||||||||||||||
Non-GAAP diluted shares (3) | 90,901,870 | 89,866,880 | 87,588,495 | 89,955,702 | 86,849,388 | ||||||||||||||
Adjusted EPS – diluted (3) | $ | (0.25 | ) | $ | (0.60 | ) | $ | 0.09 | $ | (1.29 | ) | $ | (0.06 | ) |
(1) | Presented on an as-converted basis, as the preferred stock is considered common shares because it participates in earnings similar to common stock and does not receive any significant preferences over the common stock. |
(2) | See “Item 1. Financial Statements – Notes to Condensed Consolidated Financial Statements – Note 4. Net Income (Loss) Per Share” and “Note 14. Stockholders' Equity” for additional information. |
(3) | Beginning in the first quarter of 2020, includes the total weighted-average shares outstanding of both common and preferred stock on an as-converted basis. |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||
Retail Program (1) | Consolidated VIEs (2)(4) | All Other LendingClub (3) | Condensed Consolidated Balance Sheet | Retail Program (1) | Consolidated VIEs (2)(4) | All Other LendingClub (3) | Condensed Consolidated Balance Sheet | ||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 445,180 | $ | 445,180 | $ | — | $ | — | $ | 243,779 | $ | 243,779 | |||||||||
Restricted cash | — | 13,465 | 85,322 | 98,787 | — | 2,894 | 240,449 | 243,343 | |||||||||||||||||
Securities available for sale | — | — | 187,375 | 187,375 | — | — | 270,927 | 270,927 | |||||||||||||||||
Loans held for investment at fair value | 633,787 | 74,487 | — | 708,274 | 881,473 | 197,842 | — | 1,079,315 | |||||||||||||||||
Loans held for investment by the Company at fair value (4) | — | 53,336 | 5,763 | 59,099 | — | 37,638 | 6,055 | 43,693 | |||||||||||||||||
Loans held for sale by the Company at fair value (4) | — | 106,086 | 74,715 | 180,801 | — | — | 722,355 | 722,355 | |||||||||||||||||
Accrued interest receivable | 4,483 | 1,499 | 883 | 6,865 | 5,930 | 1,815 | 5,112 | 12,857 | |||||||||||||||||
Property, equipment and software, net | — | — | 101,045 | 101,045 | — | — | 114,370 | 114,370 | |||||||||||||||||
Operating lease assets | — | — | 76,226 | 76,226 | — | — | 93,485 | 93,485 | |||||||||||||||||
Intangible assets, net | — | — | 12,180 | 12,180 | — | — | 14,549 | 14,549 | |||||||||||||||||
Other assets | — | — | 103,625 | 103,625 | — | — | 143,668 | 143,668 | |||||||||||||||||
Total assets | $ | 638,270 | $ | 248,873 | $ | 1,092,314 | $ | 1,979,457 | $ | 887,403 | $ | 240,189 | $ | 1,854,749 | $ | 2,982,341 | |||||||||
Liabilities and Equity | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 3,382 | $ | 3,382 | $ | — | $ | — | $ | 10,855 | $ | 10,855 | |||||||||
Accrued interest payable | 4,483 | 976 | 370 | 5,829 | 5,930 | 1,737 | 1,593 | 9,260 | |||||||||||||||||
Operating lease liabilities | — | — | 98,204 | 98,204 | — | — | 112,344 | 112,344 | |||||||||||||||||
Accrued expenses and other liabilities | — | — | 100,916 | 100,916 | — | — | 142,636 | 142,636 | |||||||||||||||||
Payable to investors | — | — | 35,068 | 35,068 | — | — | 97,530 | 97,530 | |||||||||||||||||
Notes, certificates and secured borrowings at fair value | 633,787 | 74,487 | 323 | 708,597 | 881,473 | 197,842 | 2,151 | 1,081,466 | |||||||||||||||||
Payable to Structured Program note and certificate holders at fair value(4) | — | 173,410 | — | 173,410 | — | 40,610 | — | 40,610 | |||||||||||||||||
Credit facilities and securities sold under repurchase agreements | — | — | 120,159 | 120,159 | — | — | 587,453 | 587,453 | |||||||||||||||||
Total liabilities | 638,270 | 248,873 | 358,422 | 1,245,565 | 887,403 | 240,189 | 954,562 | 2,082,154 | |||||||||||||||||
Total equity | — | — | 733,892 | 733,892 | — | — | 900,187 | 900,187 | |||||||||||||||||
Total liabilities and equity | $ | 638,270 | $ | 248,873 | $ | 1,092,314 | $ | 1,979,457 | $ | 887,403 | $ | 240,189 | $ | 1,854,749 | $ | 2,982,341 |
(4) | The Company has sponsored Structured Program transactions that have been consolidated, resulting in an increase to “Loans held for investment by the Company at fair value,” “Loans held for sale by the Company at fair value” and the related “Payable to Structured Program note and certificate holders at fair value.” See “Item 1. Financial Statements – Notes to Condensed Consolidated Financial Statements – Note 13. Debt” for additional information. |
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||||
Cash and cash equivalents (1) | $ | 445,180 | $ | 338,394 | $ | 294,345 | $ | 243,779 | $ | 199,950 | |||||||||
Restricted cash committed for loan purchases (2) | 308 | 290 | 4,572 | 68,001 | 84,536 | ||||||||||||||
Securities available for sale | 187,375 | 221,930 | 256,554 | 270,927 | 246,559 | ||||||||||||||
Loans held for investment by the Company at fair value (3) | 59,099 | 65,557 | 71,003 | 43,693 | 4,211 | ||||||||||||||
Loans held for sale by the Company at fair value (3) | 180,801 | 587,093 | 741,704 | 722,355 | 710,170 | ||||||||||||||
Payable to Structured Program note and certificate holders at fair value (3) | (173,410 | ) | (193,034 | ) | (206,092 | ) | (40,610 | ) | — | ||||||||||
Credit facilities and securities sold under repurchase agreements | (120,159 | ) | (480,079 | ) | (621,020 | ) | (587,453 | ) | (509,107 | ) | |||||||||
Other assets and liabilities (2) | 363 | 23,916 | 61,107 | (6,226 | ) | (31,795 | ) | ||||||||||||
Net cash and other financial assets (4) | $ | 579,557 | $ | 564,067 | $ | 602,173 | $ | 714,466 | $ | 704,524 |
(1) | Variations in cash and cash equivalents are primarily due to variations in the amount and timing of loan purchases invested in by the Company. |
(2) | In the fourth quarter of 2019, we added a new line item called “Other assets and liabilities” which is a total of “Accrued interest receivable,” “Other assets,” “Accounts payable,” “Accrued interest payable” and “Accrued expenses and other liabilities,” included on our Consolidated Balance Sheets. This line item represents certain assets and liabilities that impact working capital and are affected by timing differences between revenue and expense recognition and related cash activity. In the third quarter of 2019, we added a new line item called “Restricted cash committed for loan purchases,” which represents cash and cash equivalents that are transferred to restricted cash for loans that are pending purchase by the Company. We believe this is a more complete representation of the Company’s net cash and other financial assets position as of each period presented in the table above. Prior period amounts have been reclassified to conform to the current period presentation. |
(3) | The Company has sponsored Structured Program transactions that have been consolidated, resulting in an increase to “Loans held for investment by the Company at fair value,” “Loans held for sale by the Company at fair value” and the related “Payable to Structured Program note and certificate holders at fair value.” See “Item 1. Financial Statements – Notes to Condensed Consolidated Financial Statements – Note 13. Debt” for additional information. |
(4) | Comparable GAAP measure cannot be provided as not practicable. |
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | ||||||||||
Investor Type: | ||||||||||||||
Banks | 41 | % | 68 | % | 43 | % | 32 | % | 38 | % | ||||
Managed accounts | 44 | % | 10 | % | 16 | % | 17 | % | 15 | % | ||||
Self-directed retail investors | 13 | % | 17 | % | 4 | % | 3 | % | 4 | % | ||||
LendingClub inventory (1) | 2 | % | 5 | % | 20 | % | 23 | % | 23 | % | ||||
Other institutional investors | — | % | — | % | 17 | % | 25 | % | 20 | % | ||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
(1) | LendingClub inventory reflects loans purchased or pending purchase by the Company during the period, excluding loans held by the Company through consolidated trusts, if applicable, and not yet sold as of the period end. |
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | ||||||||||
Percentage of loans invested in by ten largest investors | 83 | % | 77 | % | 56 | % | 51 | % | 55 | % | ||||
Percentage of loans invested in by largest single investor | 23 | % | 22 | % | 21 | % | 19 | % | 29 | % |
September 30, 2020 | December 31, 2019 | ||||||||||||||
(in millions, except percentages) | Outstanding Principal Balance | Fair Value (1) | Delinquent Loans (1) | Outstanding Principal Balance | Fair Value (1) | Delinquent Loans (1) | |||||||||
Personal loans – standard program | $ | 756.0 | 93.6 | % | 1.8 | % | $ | 1,144.8 | 93.9 | % | 3.1 | % | |||
Personal loans – custom program | 0.6 | 98.4 | 2.4 | 4.1 | 94.8 | 5.7 | |||||||||
Total | $ | 756.6 | 93.6 | % | 1.8 | % | $ | 1,148.9 | 93.9 | % | 3.1 | % |
(1) | Expressed as a percent of outstanding principal balance. |
September 30, 2020 | December 31, 2019 | ||||||||||||||
(in millions, except percentages) | Outstanding Principal Balance (2) | Fair Value (3) | Delinquent Loans (3) | Outstanding Principal Balance (2) | Fair Value (3) | Delinquent Loans (3) | |||||||||
Personal loans – standard program | $ | 246.3 | 89.9 | % | 2.6 | % | $ | 597.9 | 96.5 | % | 0.8 | % | |||
Personal loans – custom program | 9.7 | 85.9 | 7.2 | 92.8 | 98.1 | 0.4 | |||||||||
Other loans (1) | 12.9 | 78.2 | 23.0 | 103.7 | 94.7 | 3.9 | |||||||||
Total | $ | 268.9 | 89.2 | % | 3.8 | % | $ | 794.4 | 96.4 | % | 1.2 | % |
(1) | Components of other loans are less than 10% of the outstanding principal balance if presented individually. |
(2) | Includes both loans held for investment and loans held for sale. |
(3) | Expressed as a percent of outstanding principal balance. |
Total Platform (1) | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||
Personal Loans – Standard Program: | ||||||||||
Annualized net charge-off rate | 3.9 | % | 6.5 | % | 6.4 | % | 7.0 | % | 6.4 | % |
Weighted-average age in months | 16.8 | 15.0 | 12.9 | 12.5 | 12.3 | |||||
Personal Loans – Custom Program: | ||||||||||
Annualized net charge-off rate | 6.4 | % | 11.4 | % | 10.6 | % | 11.5 | % | 10.9 | % |
Weighted-average age in months | 14.8 | 12.5 | 10.1 | 9.4 | 9.3 |
(1) | Total platform comprises all loans facilitated through our lending marketplace, including whole loans sold and loans financed by notes, certificates and secured borrowings, but excluding education and patient finance loans, auto refinance loans and small business loans. |
Loans Retained on Balance Sheet (1) | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||
Personal Loans – Standard Program: | ||||||||||
Annualized net charge-off rate | 1.5 | % | 4.3 | % | 4.7 | % | 7.1 | % | 6.8 | % |
Weighted-average age in months | 15.6 | 12.8 | 11.0 | 12.4 | 12.7 | |||||
Personal Loans – Custom Program: | ||||||||||
Annualized net charge-off rate | 3.4 | % | 5.6 | % | (2.6 | )% | 1.6 | % | 2.5 | % |
Weighted-average age in months | 8.6 | 6.4 | 4.7 | 3.9 | 6.9 |
(1) | Loans retained on balance sheet include loans invested in by the Company as well as loans held for investment that are funded directly by member payment dependent notes related to our Retail Program and certificates. |
• | Approximately $410 million (borrower principal balance) in bulk loan sales; |
• | The full paydown of $70.0 million of the revolving credit facility to zero at September 30, 2020; and |
• | The paydown of $276.0 million of Warehouse Facilities to $18.5 million at September 30, 2020 and to zero in October 2020. |
• | A repurchase agreement with a daily rolling evergreen 45-day maturity structure for $62.7 million (which included pledged securities with a fair value of $83.5 million) that had a contractual repurchase date in October 2020 as of September 30, 2020 was terminated in October 2020 and replaced with a new repurchase facility having a repurchase date in September 2022 and no margin call provisions; and |
• | Monitoring of Commitment Termination Dates for our Warehouse Facilities with an outstanding balance of $18.5 million at September 30, 2020 (secured by unsecured personal loans with a fair value of $26.3 million) with associated Commitment Termination Dates of December 2020. Any remaining outstanding drawn balances on the Commitment Termination Date would be paid down as principal payments are received on the underlying loans securing the Warehouse Facilities through to the maturity date in December 2021. The Company fully paid the outstanding balance in October 2020. |
Nine Months Ended September 30, | |||||||
Condensed Cash Flow Information: | 2020 | 2019 | |||||
Cash provided by (used for) loan operating activities | $ | 375,782 | $ | (293,099 | ) | ||
Cash provided by (used for) all other operating activities | (10,825 | ) | 132,411 | ||||
Net cash provided by (used for) operating activities (1) (3) | $ | 364,957 | $ | (160,688 | ) | ||
Cash provided by loan investing activities (2) | $ | 346,840 | $ | 470,282 | |||
Cash provided by all other investing activities | 103,751 | 19,404 | |||||
Net cash provided by investing activities | $ | 450,591 | $ | 489,686 | |||
Cash used for note, certificate and secured borrowings financing (2) | $ | (343,558 | ) | $ | (485,298 | ) | |
Cash used for issuance of securitization notes and residual certificates, credit facilities and securities sold under repurchase agreements | (332,963 | ) | (6,569 | ) | |||
Cash used for all other financing activities | (82,182 | ) | (6,103 | ) | |||
Net cash used for financing activities | $ | (758,703 | ) | $ | (497,970 | ) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 56,845 | $ | (168,972 | ) |
(1) | Cash provided by (used for) operating activities primarily includes the purchase and sale of loans held for sale by the Company. |
(2) | Cash provided by loan investing activities includes the purchase of and repayment of loans held for investment. Cash used for note, certificate and secured borrowings financing activities includes the issuance of notes, certificates and secured borrowings to investors and the repayment of those notes, certificates and secured borrowings. These amounts generally correspond to and offset each other. |
(3) | Change in payable to investors was previously presented as cash flows from financing activities. Prior period amounts have been reclassified to conform to the current period presentation. |
Less than 1 Year | 1 to 3 Years | 3 to 5 Years | More than 5 Years | Total | |||||||||||||||
Long-term debt obligations (1) | $ | 68,029 | $ | 18,500 | $ | — | $ | 33,630 | $ | 120,159 | |||||||||
Operating lease obligations (2) | 19,230 | 26,916 | 22,306 | 59,865 | 128,317 | ||||||||||||||
WebBank loan purchase obligation | 8,488 | — | — | — | 8,488 | ||||||||||||||
Total contractual obligations | $ | 95,747 | $ | 45,416 | $ | 22,306 | $ | 93,495 | $ | 256,964 |
(1) | Amounts based on contractual maturity dates. The amount presented in the “More than 5 Years” column above represents the Company’s long-term debt obligations under certain repurchase agreements, which are paid down based on cash flows received from the underlying securities sold. The Company expects these long-term debt obligations to be satisfied within three years. |
(2) | In the second quarter, the Company terminated one lease, reducing the operating lease obligations by $9.3 million. |
Loans Invested in by the Company | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Fair value | $ | 239,900 | $ | 766,048 | |||
Discount rates | |||||||
100 basis point increase | $ | (2,564 | ) | $ | (9,806 | ) | |
100 basis point decrease | $ | 2,611 | $ | 10,014 |
Servicing Assets | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Fair value | $ | 59,538 | $ | 89,680 | |||
Weighted-average market servicing rate assumption | 0.62 | % | 0.66 | % | |||
Change in fair value from: | |||||||
Servicing rate increase by 10 basis points | $ | (7,993 | ) | $ | (13,978 | ) | |
Servicing rate decrease by 10 basis points | $ | 7,994 | $ | 13,979 |
Servicing Assets | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Fair value | $ | 59,538 | $ | 89,680 | |||
Expected prepayment rates | |||||||
10 percent increase | $ | (2,246 | ) | $ | (2,962 | ) | |
10 percent decrease | $ | 2,246 | $ | 2,962 |
Loans Invested in by the Company | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Fair value | $ | 239,900 | $ | 766,048 | |||
Interest rates | |||||||
100 basis point increase | $ | (2,564 | ) | $ | (9,806 | ) | |
100 basis point decrease | $ | 2,611 | $ | 10,014 |
Securities Available for Sale | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Fair value | $ | 187,375 | $ | 270,927 | |||
Interest rates | |||||||
100 basis point increase | $ | (1,447 | ) | $ | (2,313 | ) | |
100 basis point decrease | $ | 1,477 | $ | 2,301 |
Credit Facilities and Securities Sold Under Repurchase Agreements | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Carrying value | $ | 120,159 | $ | 587,453 | |||
One-month LIBOR | |||||||
100 basis point increase | $ | 1,202 | $ | 5,875 | |||
100 basis point decrease | $ | (1,202 | ) | $ | (5,875 | ) |
Loans Invested in by the Company | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Fair value | $ | 239,900 | $ | 766,048 | |||
Credit loss rates | |||||||
10 percent increase | $ | (2,938 | ) | $ | (9,558 | ) | |
10 percent decrease | $ | 2,858 | $ | 9,469 |
Asset-backed Securities Related to Structured Program Transactions | |||||||
September 30, 2020 | December 31, 2019 | ||||||
Fair value | $ | 167,721 | $ | 220,135 | |||
Credit loss rates | |||||||
10 percent increase | $ | (3,961 | ) | $ | (4,326 | ) | |
10 percent decrease | $ | 3,855 | $ | 4,285 |
• | Negative pressure on overall platform returns, including as a result of increased credit risk of borrowers (including elevated delinquencies and charge-off rates) and the implementation of forbearance plans; |
• | Materially decreased platform investor demand for our products and an inability for many platform investors to secure funding or financing arrangements; |
• | Materially decreased borrower demand for certain of our products, including our patient finance loans which provide financing for elective medical and dental procedures; |
• | Reduced borrower approval rates, including as a result of credit and other adjustments that aim to protect investor returns; |
• | Reduced platform volume due, including as a result of efforts to balance the platform, resulting in materially reduced revenues; |
• | An inability to offer our structured products due to the impact of COVID-19 on the capital markets; and |
• | Impeded liquidity and negative fair-value adjustments with respect to assets held on our balance sheet. |
Incorporated by Reference | ||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Filed Herewith |
101.INS | XBRL Instance Document‡ | X | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | X | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | X | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | X | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | X | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
‡ | The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
LENDINGCLUB CORPORATION | ||||
(Registrant) | ||||
Date: | November 5, 2020 | /s/ SCOTT SANBORN | ||
Scott Sanborn | ||||
Chief Executive Officer | ||||
Date: | November 5, 2020 | /s/ THOMAS W. CASEY | ||
Thomas W. Casey | ||||
Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of LendingClub Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ SCOTT SANBORN |
Scott Sanborn |
Chief Executive Officer |
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of LendingClub Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ THOMAS W. CASEY |
Thomas W. Casey |
Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ SCOTT SANBORN | ||
Scott Sanborn | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
/s/ THOMAS W. CASEY | ||
Thomas W. Casey | ||
Chief Financial Officer | ||
Dated: | November 5, 2020 |
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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|
Restricted cash | [1] | $ 98,787 | $ 243,343 | |
Loans held for investment at fair value | [1] | 708,274 | 1,079,315 | |
Loans held for investment by the Company at fair value | [1] | 59,099 | 43,693 | |
Loans held for sale by the Company at fair value | [1] | 180,801 | 722,355 | |
Accrued interest receivable | [1] | 6,865 | 12,857 | |
Other assets | [1] | 103,625 | 143,668 | |
Accrued interest payable | [1] | 5,829 | 9,260 | |
Accrued expenses and other liabilities | [1] | 100,916 | 142,636 | |
Notes, certificates and secured borrowings at fair value | [1] | 708,597 | 1,081,466 | |
Payable to Structured Program note and certificate holders at fair value | [1] | 173,410 | 40,610 | |
Credit facilities and securities sold under repurchase agreements | [1] | 120,159 | 587,453 | |
Total liabilities of consolidated variable interest entities | 1,245,565 | 2,082,154 | ||
Securities available for sale, allowance for credit losses | 17,542 | 0 | ||
Securities available for sale, pledged as collateral at fair value | 127,376 | 174,849 | ||
Securities available for sale at amortized cost | $ 205,997 | $ 271,173 | ||
Preferred stock, par value ($ per share) | $ 0.01 | |||
Preferred stock, authorized (shares) | 10,000,000 | |||
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 | ||
Common stock, authorized (shares) | 180,000,000 | 180,000,000 | ||
Common stock, shares issued | 76,511,394 | 89,218,797 | ||
Common stock, shares outstanding | 76,511,394 | 88,757,406 | ||
Treasury stock, shares | 0 | 461,391 | ||
Series A Preferred Stock | ||||
Preferred stock, par value ($ per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, authorized (shares) | 1,200,000 | 1,200,000 | ||
Preferred stock, issued (shares) | 149,904 | 0 | ||
Preferred stock, outstanding (shares) | 149,904 | 0 | ||
Consolidated VIEs | ||||
Restricted cash | $ 18,113 | $ 30,046 | ||
Loans held for investment at fair value | 74,487 | 197,842 | ||
Loans held for investment by the Company at fair value | 57,756 | 40,251 | ||
Loans held for sale by the Company at fair value | 138,557 | 551,455 | ||
Accrued interest receivable | 1,768 | 4,431 | ||
Other assets | 161 | 1,359 | ||
Total assets of consolidated variable interest entities | 290,842 | 825,384 | ||
Accrued interest payable | 1,008 | 3,185 | ||
Accrued expenses and other liabilities | 181 | 244 | ||
Notes, certificates and secured borrowings at fair value | 74,487 | 197,842 | ||
Payable to Structured Program note and certificate holders at fair value | 173,410 | 40,610 | ||
Credit facilities and securities sold under repurchase agreements | 18,500 | 387,251 | ||
Total liabilities of consolidated variable interest entities | $ 267,586 | $ 629,132 | ||
|
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
Net interest income and fair value adjustments: | ||||||
Interest income | $ 46,773 | $ 77,820 | $ 176,744 | $ 270,554 | ||
Interest expense | (32,440) | (55,060) | (114,447) | (197,336) | ||
Net fair value adjustments | (696) | (31,628) | (108,812) | (102,331) | ||
Net interest income and fair value adjustments | 13,637 | (8,868) | (46,515) | (29,113) | ||
Gain on sales of loans | 7,739 | 18,305 | 23,724 | 47,343 | ||
Net Investor Revenue | 47,226 | 39,708 | 64,133 | 112,504 | ||
Other revenue | 3,115 | 3,983 | 10,166 | 8,808 | ||
Total net revenue | 74,713 | 204,896 | 238,788 | 570,121 | ||
Operating expenses: | ||||||
Sales and marketing | 7,201 | 76,255 | 65,708 | 212,201 | ||
Origination and servicing | 15,595 | 27,996 | 54,419 | 81,200 | ||
Engineering and product development | 31,984 | 41,455 | 109,861 | 127,300 | ||
Other general and administrative | 54,332 | 59,485 | 169,438 | 180,685 | ||
Total operating expenses | 109,112 | 205,191 | 399,426 | 601,386 | ||
Loss before income tax expense | (34,399) | (295) | (160,638) | (31,265) | ||
Income tax expense (benefit) | (74) | 97 | 245 | (341) | ||
Consolidated net loss | (34,325) | (392) | (160,883) | (30,924) | ||
Less: Income (Loss) attributable to noncontrolling interests | 0 | (9) | 0 | 55 | ||
LendingClub net loss | (34,325) | (383) | (160,883) | (30,979) | ||
Transaction fees | ||||||
Net revenue, fees | 24,372 | 161,205 | 164,489 | 448,809 | ||
Investor fees | ||||||
Net revenue, fees | $ 25,850 | $ 30,271 | 86,924 | 94,274 | ||
Common Stock | ||||||
Operating expenses: | ||||||
LendingClub net loss | $ (129,968) | $ (30,979) | ||||
Net income (loss) per share – Basic and Diluted ($ per share) | [1] | $ (0.38) | $ 0.00 | $ (2.35) | $ (0.36) | |
Weighted-average common shares - Basic and Diluted (shares) | [1] | 73,566,385 | 87,588,495 | 76,781,157 | 86,849,388 | |
Preferred Stock | ||||||
Operating expenses: | ||||||
LendingClub net loss | $ (30,915) | |||||
Net income (loss) per share – Basic and Diluted ($ per share) | [1] | $ (0.38) | $ 0.00 | $ 1.46 | $ 0.00 | |
Weighted-average common shares - Basic and Diluted (shares) | [1] | 17,335,485 | 0 | 13,174,545 | 0 | |
|
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
LendingClub net loss | $ (34,325) | $ (383) | $ (160,883) | $ (30,979) |
Other comprehensive income (loss), before tax: | ||||
Net unrealized gain (loss) on securities available for sale | 6,502 | (823) | (834) | 788 |
Other comprehensive income (loss), before tax | 6,502 | (823) | (834) | 788 |
Income tax effect | 74 | (130) | (245) | 308 |
Other comprehensive income (loss), net of tax | 6,428 | (693) | (589) | 480 |
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | (39) | 0 | (22) |
LendingClub other comprehensive income (loss), net of tax | 6,428 | (654) | (589) | 502 |
LendingClub comprehensive loss | (27,897) | (1,037) | (161,472) | (30,477) |
Comprehensive loss attributable to noncontrolling interests | 0 | (39) | 0 | (22) |
Total comprehensive loss | $ (27,897) | $ (1,076) | $ (161,472) | $ (30,499) |
Condensed Consolidated Statements of Changes in Equity Statement - USD ($) $ in Thousands |
Total |
Preferred Stock |
Common Stock |
Additional Paid-in Capital |
Treasury Stock |
Accumulated Other Comprehensive Income (Loss) |
Accumulated Deficit |
Total Equity |
Noncontrolling Interests |
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2018 | 0 | 85,928,127 | 456,540 | ||||||||||||
Beginning balance at Dec. 31, 2018 | $ 870,981 | $ 0 | $ 864 | $ 1,405,392 | $ (19,485) | $ 157 | $ (517,727) | $ 869,201 | $ 1,780 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock-based compensation | 61,878 | 61,878 | 61,878 | ||||||||||||
Net issuances under equity incentive plans, net of tax (in shares) | [1] | 2,040,492 | 3,894 | ||||||||||||
Net issuances under equity incentive plans, net of tax | [1] | (15,127) | $ 20 | (15,094) | $ (53) | (15,127) | |||||||||
Employee stock purchase plan (ESPP) purchase shares (in shares) | 163,970 | ||||||||||||||
Employee stock purchase plan (ESPP) purchase shares | 2,412 | $ 2 | 2,410 | 2,412 | |||||||||||
Net unrealized gain (loss) on securities available for sale, net of tax | 482 | 502 | 502 | (20) | |||||||||||
Dividends paid and return of capital to noncontrolling interests | (1,815) | (1,815) | |||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (30,924) | (30,979) | (30,979) | 55 | |||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 0 | 88,132,589 | 460,434 | ||||||||||||
Ending balance at Sep. 30, 2019 | 887,887 | $ 0 | $ 886 | 1,454,586 | $ (19,538) | 659 | (548,706) | 887,887 | 0 | ||||||
Beginning balance (in shares) at Jun. 30, 2019 | 0 | 87,160,013 | 456,540 | ||||||||||||
Beginning balance at Jun. 30, 2019 | 874,321 | $ 0 | $ 876 | 1,439,244 | $ (19,485) | 1,313 | (548,323) | 873,625 | 696 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock-based compensation | 19,491 | 19,491 | 19,491 | ||||||||||||
Net issuances under equity incentive plans, net of tax (in shares) | [1] | 972,576 | 3,894 | ||||||||||||
Net issuances under equity incentive plans, net of tax | [1] | (4,192) | $ 10 | (4,149) | $ (53) | (4,192) | |||||||||
Net unrealized gain (loss) on securities available for sale, net of tax | (691) | (654) | (654) | (37) | |||||||||||
Dividends paid and return of capital to noncontrolling interests | (650) | (650) | |||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (392) | (383) | (383) | (9) | |||||||||||
Ending balance (in shares) at Sep. 30, 2019 | 0 | 88,132,589 | 460,434 | ||||||||||||
Ending balance at Sep. 30, 2019 | 887,887 | $ 0 | $ 886 | 1,454,586 | $ (19,538) | 659 | (548,706) | 887,887 | 0 | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 88,757,406 | 461,391 | ||||||||||||
Beginning balance at Dec. 31, 2019 | 900,187 | $ 0 | $ 892 | 1,467,882 | $ (19,550) | (565) | (548,472) | 900,187 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock-based compensation | 51,492 | 51,492 | 51,492 | ||||||||||||
Net issuances under equity incentive plans, net of tax (in shares) | [2] | 2,744,469 | 5,658 | ||||||||||||
Net issuances under equity incentive plans, net of tax | [2] | (6,111) | $ 27 | (6,067) | $ (71) | (6,111) | |||||||||
Issuance of preferred stock in exchange for common stock (in shares) | [3] | 149,904 | (14,990,481) | ||||||||||||
Issuance of preferred stock in exchange for common stock | [3] | (50,204) | $ 1 | $ (150) | 149 | (50,204) | (50,204) | ||||||||
Retirement of treasury stock | $ (4) | (19,617) | $ 19,621 | ||||||||||||
Retirement of treasury stock (in shares) | (467,049) | ||||||||||||||
Net unrealized gain (loss) on securities available for sale, net of tax | (589) | (589) | (589) | 0 | |||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (160,883) | (160,883) | (160,883) | 0 | |||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 149,904 | 76,511,394 | 0 | ||||||||||||
Ending balance at Sep. 30, 2020 | 733,892 | $ 1 | $ 765 | 1,493,839 | $ 0 | (1,154) | (759,559) | 733,892 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Payment of deemed dividend due to beneficial conversion feature | 50,200 | ||||||||||||||
Beginning balance (in shares) at Jun. 30, 2020 | 195,627 | 70,938,835 | 0 | ||||||||||||
Beginning balance at Jun. 30, 2020 | 746,142 | $ 2 | $ 709 | 1,478,247 | $ 0 | (7,582) | (725,234) | 746,142 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock-based compensation | 16,281 | 16,281 | 16,281 | ||||||||||||
Net issuances under equity incentive plans, net of tax (in shares) | [2] | 1,000,259 | |||||||||||||
Net issuances under equity incentive plans, net of tax | [2] | (634) | $ 10 | (644) | (634) | ||||||||||
Issuance of preferred stock in exchange for common stock (in shares) | (45,723) | 4,572,300 | |||||||||||||
Issuance of preferred stock in exchange for common stock | 0 | $ (1) | $ 46 | (45) | 0 | ||||||||||
Net unrealized gain (loss) on securities available for sale, net of tax | 6,428 | 6,428 | 6,428 | ||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (34,325) | (34,325) | (34,325) | ||||||||||||
Ending balance (in shares) at Sep. 30, 2020 | 149,904 | 76,511,394 | 0 | ||||||||||||
Ending balance at Sep. 30, 2020 | $ 733,892 | $ 1 | $ 765 | $ 1,493,839 | $ 0 | $ (1,154) | $ (759,559) | $ 733,892 | $ 0 | ||||||
|
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
Cash Flows from Operating Activities: | ||||
Consolidated net loss | $ (160,883) | $ (30,924) | ||
Adjustments to reconcile consolidated net loss to net cash provided by (used for) operating activities: | ||||
Net fair value adjustments | 108,812 | 102,331 | ||
Change in fair value of loan servicing assets and liabilities | 48,040 | 39,882 | ||
Stock-based compensation, net | 47,455 | 56,898 | ||
Depreciation and amortization | 41,832 | 44,034 | ||
Gain on sales of loans | (23,724) | (47,343) | ||
Other, net | 9,582 | 14,649 | ||
Purchase of loans held for sale | (2,192,059) | (5,282,100) | ||
Principal payments received on loans held for sale | 204,561 | 193,850 | ||
Proceeds from whole loan sales and Structured Program transactions, net of underwriting fees and costs | 2,363,280 | 4,795,151 | ||
Net change in operating assets and liabilities: | ||||
Accrued interest receivable, net | (5,278) | (9,536) | ||
Other assets | 42,769 | 12,167 | ||
Accounts payable | (7,363) | 6,998 | ||
Accrued interest payable | (3,431) | (8,654) | ||
Accrued expenses and other liabilities | (42,847) | (12,134) | ||
Change in payable to investors | [1] | (65,789) | (35,957) | |
Net cash provided by (used for) operating activities | 364,957 | (160,688) | ||
Cash Flows from Investing Activities: | ||||
Purchases of loans | (237,403) | (522,564) | ||
Principal payments received on loans | 550,448 | 950,607 | ||
Proceeds from recoveries and sales of charged-off loans | 33,795 | 42,239 | ||
Purchases of securities available for sale | (53,536) | (116,753) | ||
Proceeds from sales, maturities, redemptions and paydowns of securities available for sale | 79,986 | 110,884 | ||
Proceeds from paydowns of asset-backed securities related to Structured Program transactions | 101,584 | 64,056 | ||
Other investing activities | 300 | 194 | ||
Purchases of property, equipment and software, net | (24,583) | (38,977) | ||
Net cash provided by investing activities | 450,591 | 489,686 | ||
Cash Flows from Financing Activities: | ||||
Proceeds from issuance of notes and certificates | 237,283 | 522,249 | ||
Repayments of secured borrowings | (14,997) | (47,930) | ||
Principal payments on and retirements of notes and certificates | (532,534) | (916,983) | ||
Payments on notes, certificates, and secured borrowings from recoveries/sales of related charged-off loans | (33,310) | (42,634) | ||
Principal payments on securitization notes | (51,635) | (56,707) | ||
Proceeds from issuance of notes and certificates from Structured Program transactions | 186,190 | 0 | ||
Proceeds from credit facilities and securities sold under repurchase agreements | 1,105,051 | 1,851,738 | ||
Principal payments on credit facilities and securities sold under repurchase agreements | (1,572,569) | (1,801,600) | ||
Payment for debt issuance costs | (264) | (1,356) | ||
Deemed dividend paid to preferred stockholder | (50,204) | 0 | ||
Other financing activities | (31,714) | (4,747) | ||
Net cash used for financing activities | (758,703) | (497,970) | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 56,845 | (168,972) | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 487,122 | 644,058 | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | 543,967 | 475,086 | ||
Supplemental Cash Flow Information: | ||||
Cash paid for interest | 115,639 | 206,332 | ||
Cash paid for operating leases included in the measurement of lease liabilities | 12,086 | 12,568 | ||
Non-cash investing activity: | ||||
Net securities retained from Structured Program transactions | 43,458 | 136,053 | ||
Accruals for property, equipment and software | 1,260 | 3,299 | ||
Non-cash investing and financing activity: | ||||
Transfer of whole loans to redeem certificates | 17,414 | 122,330 | ||
Non-cash financing activity: | ||||
Exchange of common stock for preferred stock | 207,244 | 0 | ||
Derecognition of payable to securitization note and residual certificate holders held in consolidated VIE | $ 0 | $ 200,881 | ||
|
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Dec. 31, 2018 |
||
---|---|---|---|---|---|---|
Statement of Cash Flows [Abstract] | ||||||
Cash and cash equivalents | $ 445,180 | $ 243,779 | ||||
Restricted cash | [1] | 98,787 | 243,343 | |||
Total cash, cash equivalents and restricted cash | $ 543,967 | $ 487,122 | $ 475,086 | $ 644,058 | ||
|
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation LendingClub Corporation (LendingClub) operates an online lending marketplace platform that connects borrowers and investors. Various wholly-owned subsidiaries of LendingClub have been established to enter into borrowing agreements with certain lenders for secured credit facilities. Additionally, LendingClub has established various entities to facilitate loan sale transactions, including sponsoring asset-backed securitization transactions and Certificate Program transactions (collectively referred to as Structured Program transactions), where certain accredited investors and qualified institutional buyers have the opportunity to invest in senior and subordinated securities backed by a pool of unsecured personal whole loans. Certificate Program transactions include CLUB Certificate and Levered Certificate transactions. LC Trust I (the LC Trust) is an independent Delaware business trust that acquires loans from LendingClub and holds them for the sole benefit of certain investors that have purchased trust certificates issued by the LC Trust that are related to specific underlying loans for the benefit of the investor. Springstone Financial, LLC (Springstone), is a wholly-owned subsidiary of LendingClub that facilitated education and patient finance loans originated by third-party issuing banks. All assets of Springstone have been transferred to LendingClub and Springstone is expected to be dissolved. The accompanying unaudited condensed consolidated financial statements include LendingClub, its subsidiaries (collectively referred to as the Company, we, or us) and consolidated variable interest entities (VIEs). Noncontrolling interests are reported as a separate component of consolidated equity from the equity attributable to LendingClub’s stockholders for all periods presented. All intercompany balances and transactions have been eliminated. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and, in the opinion of management, contain all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. These accounting principles require management to make certain estimates and assumptions that affect the amounts in the accompanying financial statements. These estimates and assumptions are inherently subjective in nature and actual results may differ from these estimates and assumptions, and the differences could be material. Results reported in interim periods are not necessarily indicative of results for the full year or any other interim period. Certain prior period amounts have been reclassified to conform to the current period presentation. The Company presents loans under a number of different captions to align the assets to their associated liabilities, if any. “Loans held for investment at fair value” are loans which are related to the Company’s retail notes, certificates and secured borrowings program. The Company is not exposed to market risk, interest rate risk or credit risk on these loans and all loan cash flows flow directly to the retail note, certificate and secured borrowing owners. The associated liability for this loan category is included in the caption “Notes, certificates and secured borrowings at fair value.” Loans included in “Loans held for investment by the Company at fair value” and “Loans held for sale by the Company at fair value” are loans which the Company has purchased and from which the Company earns interest income and records net fair value adjustments in earnings for changes in the valuation of loans. The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (Annual Report) filed on February 19, 2020.
|
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in “Part II – Item 8 – Financial Statements and Supplementary Data – Note 2. Summary of Significant Accounting Policies” in the Annual Report. There have been no changes to these significant accounting policies for the nine month period ended September 30, 2020, except as noted below. Securities Available for Sale Debt securities that the Company might not hold until maturity are classified as securities available for sale. In structured program transactions that meet the applicable criteria to be accounted for as a sale, the Company retains certain asset-backed securities including subordinated residual interests and CLUB Certificates, which are classified as securities available for sale. On January 1, 2020, the entity adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) for securities available for sale. Asset-backed securities where the expected cash flows are significantly lower than that of the contractual future cash flows are considered to be purchased with credit deterioration (PCD). The discounted differential in expected and contractual cash flows is included with the purchase price of the asset to determine amortized cost of the security with an equal and offsetting valuation allowance for credit losses. Securities available for sale are recorded at fair value and unrealized gains and losses are reported, net of taxes, in “Accumulated other comprehensive income (loss)” included in Equity in the Company’s Consolidated Balance Sheets, unless management determines that the security is impaired due to a deterioration in expected cash flows, in which case the unrealized loss is recognized in earnings within “Net fair value adjustments” as a valuation allowance for credit losses (with the implementation of CECL) or other-than-temporary impairment (prior to the implementation of CECL) in the Company’s Condensed Consolidated Statements of Operations. Management evaluates whether debt securities available for sale with unrealized losses are impaired on a quarterly basis. If the Company intends to sell the security, or if it is more likely than not that it will be required to sell the security before recovery, an impairment is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the debt security. However, even if the Company does not expect to sell a debt security it must evaluate if a deterioration in cash flows exists. Accrued Interest Receivable on Loans The Company does not record an allowance for credit losses on accrued interest receivable. The Company places loans on non-accrual status at 90 days past due. When a loan is placed on non-accrual status, the Company stops accruing interest and reverses all accrued but unpaid interest income as of such date. The Company accrues interest income on loans on short term hardship programs using the effective interest rate method. Net Income (Loss) Per Share Basic net income (loss) per share (Basic EPS) attributable to common stockholders is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share (Diluted EPS) is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period, adjusted for the effects of dilutive issuances of shares of common stock, which include incremental shares issued for outstanding RSUs, PBRSUs, and stock options. PBRSUs are included in dilutive shares to the extent the pre-established performance targets have been or are estimated to be satisfied as of the reporting date. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding RSUs, PBRSUs, and stock options are excluded from the computation of Diluted EPS in periods in which the effect would be antidilutive. For periods with more than one class of common shares, the Company computes Basic and Diluted EPS using the two-class method, which is an allocation of net income (loss) among the holders of each class of common shares. The Series A Preferred Stock is considered a separate class of common share for purposes of calculating net income (loss) per share because it participates in earnings similar to common stock and does not receive any significant preferences over the common stock. Beneficial Conversion Feature The Company accounts for the beneficial conversion feature (BCF) on its Series A Preferred Stock in accordance with ASC 470-20, Debt with Conversion and Other Options. The Company accretes the BCF discount from the date of issuance to the earliest conversion date, which was March 20, 2020. All of the BCF discount was accreted and recognized as a deemed dividend in “Accumulated deficit” on the Company’s Condensed Consolidated Balance Sheets. See “Note 14. Stockholders' Equity” for additional information. Adoption of New Accounting Standards The Company adopted the following accounting standards during the nine month period ended September 30, 2020: On January 1, 2020, the entity adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. For loans accounted for at amortized cost, the guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. As the Company has elected the fair value option for loans and loans accounted for at fair value through net income are outside the scope of Topic 326, there is no impact on the Company’s loan portfolios. For debt securities available for sale, Topic 326 requires recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. Upon adoption, the amendments in Topic 326 are recognized through a cumulative-effect adjustment to retained earnings, except for debt securities with prior other-than-temporary impairment whereby Topic 326 is applied prospectively. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis remains the same before and after the effective date of ASC 326. The effective interest rate on these debt securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of January 1, 2020 relating to improvements in cashflows expected to be collected are accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 are recorded in earnings when received. Additionally, the Company adopted ASC 326 using the prospective transition approach for PCD financial assets. The Company did not have any previously classified assets as purchased credit impaired (PCI) under ASC 310-30. In accordance with this standard, management did not reevaluate for PCD upon transition. Adoption of Topic 326 did not have an impact on the Company’s financial position, results of operations, and cash flows. The Company did not record a cumulative effect adjustment to retained earnings. The Company included the disclosures required by ASU 2016-13 in “Note 5. Securities Available for Sale.” In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and valuation processes for Level 3 fair value measurements. The ASU adds new disclosure requirements for Level 3 measurements. The new guidance became effective on January 1, 2020 and did not have a material impact on the Company’s related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software – (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which requires a customer in a hosting arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The standard became effective on January 1, 2020 and the Company adopted the standard using the prospective approach. The Company has reviewed existing cloud computing arrangements and determined which ones are service contracts. Implementation costs that are not from internal developers related to service contracts that satisfy the criteria for capitalization under ASC 350-40 will be presented with “Other assets” on the Company’s Consolidated Balance Sheets, amortization expense will be presented in the same line on the income statement as the fees for the associated hosted service on the Company’s Consolidated Statements of Operations, and the cash flows will be presented consistent with the presentation of cash flows for the fees related to the hosted service, generally as cash flows from operations, on the Company’s Consolidated Statements of Cash Flows. Adoption of the standard did not have a material impact on the Company’s financial position, results of operations, cash flows, or disclosures. New Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is part of the FASB’s initiative to reduce complexity in accounting standards. The proposed ASU eliminates certain exceptions to the general principles of ASC 740, Income Taxes, and simplifies income tax accounting in several areas. The standard is effective for fiscal periods beginning after December 15, 2020 with early adoption permitted. The Company is evaluating the impact this ASU will have on its financial position, results of operations, cash flows, and disclosures, but does not expect such adoption to have a material impact. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which, if certain criteria are met, provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The provisions of the new standard may be adopted as of the beginning of the reporting period when the election is made until December 31, 2022. The Company is evaluating the impact this ASU will have on its financial position, results of operations, cash flows, and disclosures. The Company has not elected an adoption date. In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity including convertible instruments and contracts on an entity’s own equity. The guidance allows for either full or modified retrospective adoption for fiscal periods beginning after December 15, 2021 with early adoption permitted for fiscal periods beginning after December 15, 2020. The Company is evaluating the impact this ASU will have on its financial position, results of operations, cash flows, and disclosures.
|
Revenue from Contracts with Customers |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company’s revenue from contracts with customers includes transaction fees and referral fees. Referral fees are presented as a component of “Other revenue” in the Condensed Consolidated Statements of Operations. The following tables present the Company’s revenue from contracts with customers, disaggregated by revenue source for services transferred over time, for the third quarters and first nine months of 2020 and 2019:
The Company recognizes transaction and referral fees at each distinct instance after the Company satisfies its performance obligations. The Company had no bad debt expense for the third quarters and first nine months of 2020 and 2019. Because revenue is recognized at the same time that payments are received, the Company had no contract assets, contract liabilities, or deferred contract costs recorded as of both September 30, 2020 and December 31, 2019. Additionally, the Company did not recognize any revenue from performance obligations related to prior periods (for example, due to changes in transaction price) for the third quarters and first nine months of 2020 and 2019. For additional detail on the Company’s accounting policy regarding revenue recognition, see “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 2. Summary of Significant Accounting Policies” in the Company’s Annual Report.
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Net Income (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following tables detail the computation of the Company’s basic and diluted net income (loss) per share of common stock and Series A Preferred Stock:
In February 2020, the Company entered into an exchange agreement with its largest stockholder, Shanda Asset Management Holdings Limited and its affiliates (Shanda), pursuant to which, on March 20, 2020, Shanda exchanged all of 19,562,881 shares of LendingClub common stock, par value of $0.01 per share, held by it for (i) 195,628 newly issued shares of mandatorily convertible, non-voting, LendingClub preferred stock, series A (Series A Preferred Stock), par value of $0.01 per share, and (ii) a one-time cash payment of $50.2 million. The Series A Preferred Stock is considered a separate class of common shares for purposes of calculating net income (loss) per share because it participates in earnings similar to common stock and does not receive any significant preferences over the common stock. See “Note 14. Stockholders' Equity,” for additional information. During the period that included the Company’s preferred stock, Basic and Diluted EPS were computed using the two-class method, which is a net income (loss) allocation that determines EPS for each class of common stock according to dividends declared and participation rights in undistributed income (loss). The following table summarizes the weighted-average common stock that were excluded from the Company’s diluted net income (loss) per share computation because their effect would have been anti-dilutive for the periods presented:
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Securities Available for Sale |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Available for Sale | Securities Available for Sale The Company’s Structured Program transactions include (i) asset-backed securitization transactions and (ii) Certificate Program transactions. Certificate Program transactions include CLUB Certificate and Levered Certificate transactions. In connection with asset-backed securitizations, the Company is the sponsor and establishes trusts to ultimately purchase the unsecured personal loans from the Company and/or third-party whole loan investors. Securities issued from our asset-backed securitizations are senior or subordinated based on the waterfall criteria of loan payments to each security class. The subordinated residual interests issued from these transactions are first to absorb credit losses in accordance with the waterfall criteria. The assets are transferred into a trust such that the assets are legally isolated from the creditors of the Company and are not available to satisfy obligations of the Company. These assets can only be used to settle obligations of the underlying trusts. The asset-backed securitization senior securities and subordinated residual interests retained by the Company are presented as “Asset-backed senior securities” and “Asset-backed subordinated securities,” respectively, in the securities available for sale tables below. In addition, the Company sponsors the sale of unsecured personal loans through the issuance of certificate securities under our Certificate Program. The certificate securities are collateralized by loans transferred to a series of a master trust and trade in the over-the-counter market with a CUSIP. The assets are transferred into a trust such that the assets are legally isolated from the creditors of the Company and are not available to satisfy obligations of the Company. These assets can only be used to settle obligations of the underlying Certificate Program trusts. The CLUB Certificate issued securities are pass-through securities of which each owner has an undivided and equal interest in the underlying loans of each transaction. The Levered Certificate issued securities include senior and subordinated securities based on the waterfall criteria of loan payments to each security class. The subordinated securities issued from these transactions are first to absorb credit losses in accordance with the waterfall criteria. The CLUB Certificate issued securities retained by the Company are presented as “CLUB Certificate asset-backed securities” in the securities available for sale tables below. The Levered Certificate issued senior and subordinated securities retained by the Company are presented in aggregate with securities from asset-backed securitizations as “Asset-backed senior securities” and “Asset-backed subordinated securities,” respectively, in the tables below. The “Other asset-backed securities” caption in the tables below primarily includes investment-grade rated bonds that are collateralized by automobile loan receivables. The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of September 30, 2020 and December 31, 2019, were as follows:
A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded as of September 30, 2020 and December 31, 2019, aggregated by period of continuous unrealized loss, is as follows:
The Company recorded an allowance for credit loss on those securities where there was a deterioration in future estimated cash flows. The Company also recorded unrealized losses on securities with fair value price reductions due to higher liquidity premiums observed due to the market dislocation related to COVID-19. The Company deemed it not necessary to record unrealized losses as an allowance for credit loss for certain securities due to the nature of those securities and their investment grade quality. During the third quarter and first nine months of 2020, the Company recognized $(3.7) million and $3.8 million in credit recovery and loss expense, respectively. During the third quarter and first nine months of 2019, the Company recognized $1.2 million and $2.5 million in other-than-temporary impairment charges, respectively, on its asset-backed securities related to Structured Program transactions. There were no credit losses recognized into earnings for other-than-temporarily impaired securities held by the Company during the third quarter and first nine months of 2019 for which a portion of the impairment was previously recognized in other comprehensive income. The following table presents the activity in the allowance for credit losses for securities available for sale, by major security type, for the third quarter and first nine months of 2020:
Securities available for sale purchased with credit deterioration during the third quarter and first nine months of 2020 were as follows:
The contractual maturities of securities available for sale at September 30, 2020, were as follows:
During the third quarter and first nine months of 2020, the Company and Consumer Loan Underlying Bond Depositor LLC (Depositor), a subsidiary of the Company, sold a combined $0.2 billion and $1.3 billion, respectively, in asset-backed securities related to Structured Program transactions. During the third quarter and first nine months of 2019, the Company and Consumer Loan Underlying Bond Depositor LLC (Depositor), a subsidiary of the Company, sold a combined $1.2 billion and $3.2 billion, respectively, in asset-backed securities related to Structured Program transactions. There were no realized gains or losses related to such sales. For further information, see “Note 7. Securitizations and Variable Interest Entities.” Proceeds and gross realized gains and losses from other sales of securities available for sale were as follows:
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Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings Loans Held for Investment, Notes, Certificates and Secured Borrowings The Company issues member payment dependent notes and the LC Trust issues certificates as a means to allow investors to invest in the corresponding loans. At September 30, 2020 and December 31, 2019, loans held for investment, notes, certificates and secured borrowings measured at fair value on a recurring basis were as follows:
At September 30, 2020 and December 31, 2019, a fair value of $2.8 million and $18.0 million included in “Loans Held for Investment at fair value” was pledged as collateral for secured borrowings, respectively. The following table provides the balances of notes, certificates and secured borrowings at fair value at the end of the periods indicated:
Loans Invested in by the Company At September 30, 2020 and December 31, 2019, loans invested in by the Company for which there were no associated notes, certificates or secured borrowings (with the exception of $170.0 million and $40.3 million in loans at fair value in consolidated trusts as of September 30, 2020 and December 31, 2019, respectively) were as follows:
The net fair value adjustments of $(29.1) million and $(28.4) million represent net unrealized losses recorded in earnings on loans invested in by the Company at September 30, 2020 and December 31, 2019, respectively. Total fair value adjustments recorded in earnings on loans invested in by the Company of $4.3 million and $(100.3) million during the third quarter and first nine months of 2020, respectively, and $(32.4) million and $(100.1) million during the third quarter and first nine months of 2019, respectively, include net realized losses and changes in net unrealized losses. Net interest income earned on loans invested in by the Company during the third quarter and first nine months of 2020 was $12.4 million and $54.3 million, respectively. Net interest income earned on loans invested in by the Company during the third quarter and first nine months of 2019 was $17.7 million and $59.3 million, respectively. The Company used its own capital to purchase $28.0 million loans and sold $442.7 million in loans during the third quarter of 2020 which were all sold to whole loan investors. The fair value of loans invested in by the Company was $239.9 million at September 30, 2020 which included $170.0 million related to Structured Program transactions that were consolidated and a related payable to Structured Program note and certificate holders at fair value of $173.4 million as of September 30, 2020. See “Note 7. Securitizations and Variable Interest Entities” and “Note 13. Debt” for further discussion on the Company’s consolidated trusts and “Note 8. Fair Value of Assets and Liabilities” for a fair value rollforward of loans invested in by the Company for the third quarters and first nine months of 2020 and 2019. At September 30, 2020 and December 31, 2019, loans with a fair value of $26.3 million and $551.5 million included in “Loans held for sale by the Company at fair value” was pledged as collateral for the Company’s warehouse credit facilities, respectively. See “Note 13. Debt” for additional information related to these debt obligations. Loans that were 90 days or more past due (including non-accrual loans) were as follows:
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Securitizations and Variable Interest Entities |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securitization and Variable Interest Entities | Securitizations and Variable Interest Entities VIE Assets and Liabilities The following tables provide the classifications of assets and liabilities on the Company’s Condensed Consolidated Balance Sheets for its transactions with consolidated and unconsolidated VIEs at September 30, 2020 and December 31, 2019. Additionally, the assets and liabilities in the table below exclude intercompany balances that eliminate in consolidation:
Consolidated VIEs The Company consolidates VIEs when it is deemed to be the primary beneficiary. See “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 2. Summary of Significant Accounting Policies” in the Annual Report for additional information. LC Trust The Company established the LC Trust for the purpose of acquiring and holding loans for the sole benefit of certain investors that have purchased trust certificates issued by the LC Trust. The Company is obligated to ensure that the LC Trust meets minimum capital requirements with respect to funding the administrative activities and maintaining the operations of the LC Trust. Consolidated Trusts The Company establishes trusts to facilitate the sale of loans and issuance of senior and subordinated securities. If the Company is the primary beneficiary of the trust, it is a consolidated VIE and will reflect senior and subordinated securities held by third parties as a “Payable to Structured Program note and certificate holders at fair value” in the Company’s Condensed Consolidated Balance Sheets. If subsequently the Company is not the primary beneficiary of the trust, the Company will deconsolidate the VIE. See “Note 13. Debt” for additional information. Warehouse Credit Facilities The Company established certain entities (deemed to be VIEs) to enter into warehouse credit facilities for the purpose of purchasing loans from LendingClub. See “Note 13. Debt” for additional information. The following tables present a summary of financial assets and liabilities from the Company’s involvement with consolidated VIEs at September 30, 2020 and December 31, 2019:
The creditors of the VIEs above have no recourse to the general credit of the Company as the primary beneficiary of the VIEs and the liabilities of the VIEs can only be settled by the respective VIE’s assets. Unconsolidated VIEs The Company’s transactions with unconsolidated VIEs include asset-backed securitizations, Certificate Program transactions and loan sale transactions of unsecured personal loans. The Company has various forms of involvement with VIEs, including servicing of loans and holding senior or subordinated residual interests in the VIEs. The accounting for these transactions is based on a primary beneficiary analysis to determine whether the underlying VIEs should be consolidated. If the VIEs are not consolidated and the transfer of the loans from the Company to the VIE meets sale accounting criteria, then the Company will recognize a gain or loss on sales of loans. The Company considers continued involvement in an unconsolidated VIE insignificant if it is the sponsor and servicer and does not hold other significant variable interests. In these instances, the Company’s involvement with the VIE is in the role as an agent and without significant participation in the economics of the VIE. The Company enters into separate servicing agreements with the VIEs and holds at least 5% of the beneficial interests issued by the VIEs to comply with regulatory risk retention rules. The beneficial interests retained by the Company consist of senior securities and subordinated securities and are accounted for as securities available for sale. In connection with these transactions, we make certain customary representations, warranties and covenants. See “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 2. Summary of Significant Accounting Policies” in the Annual Report for additional information. Investment Fund The Company has an equity investment in a private fund (Investment Fund) that participates in a family of funds with other unrelated third parties. This family of funds purchases assets from third parties unrelated to the Company and historically purchased whole loans and interests in loans from the Company. As of September 30, 2020, the Company had an ownership interest of approximately 23% in the Investment Fund. The Company’s investment is deemed to be a variable interest in the Investment Fund because the Company shares in the expected returns and losses of the Investment Fund. The Company has requested a full redemption of our investment in the Investment Fund. At September 30, 2020, the Company’s investment was $7.8 million, which is recognized in “Other assets” on the Company’s Condensed Consolidated Balance Sheets. The following tables summarize unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary at September 30, 2020 and December 31, 2019:
“Total VIE Assets” represents the remaining principal balance of loans held by unconsolidated VIEs with respect to Unconsolidated Trusts, Certificate Program transactions, and the net assets held by the Investment Fund using the most current information available. “Securities Available for Sale,” “Accrued Interest Receivable,” and “Other Assets” are the balances in the Company’s Condensed Consolidated Balance Sheets related to its involvement with the unconsolidated VIEs. “Other Assets” includes the Company’s servicing assets and servicing receivables and the Company’s equity investment with respect to the Investment Fund. “Total Exposure” refers to the Company’s maximum exposure to loss from its involvement with unconsolidated VIEs. It represents estimated loss that would be incurred under severe, hypothetical circumstances, for which the Company believes the possibility is extremely remote, such as where the value of interests and any associated collateral declines to zero. Accordingly, this required disclosure is not an indication of expected losses. The following tables summarize activity related to the Unconsolidated Trusts and Certificate Program trusts, with the transfers accounted for as a sale on the Company’s condensed consolidated financial statements for the third quarters and first nine months of 2020 and 2019:
Off-Balance Sheet Loans Off-balance sheet loans primarily relate to Structured Program transactions for which the Company has some form of continuing involvement, including as servicer. Delinquent loans are comprised of loans 31 days or more past due, including non-accrual loans. Loans to eligible borrowers participating in Skip-a-Pay are not considered delinquent during the commensurate period the loan is extended. For loans related to Structured Program transactions where servicing is the only form of continuing involvement, the Company would only experience a loss if it was required to repurchase a loan due to a breach in representations and warranties associated with its loan sale or servicing contracts. As of September 30, 2020, the aggregate unpaid principal balance of the off-balance sheet loans pursuant to Structured Program transactions was $3.8 billion, of which $102.7 million was attributable to off-balance sheet loans that were 31 days or more past due. As of December 31, 2019, the aggregate unpaid principal balance of the off-balance sheet loans pursuant to Structured Program transactions was $4.4 billion, of which $145.6 million was attributable to off-balance sheet loans that were 31 days or more past due. Retained Interests from Unconsolidated VIEs The Company and other investors in the subordinated interests issued by trusts and Certificate Program trusts have rights to cash flows only after the investors holding the senior securities issued by the trusts have first received their contractual cash flows. The investors and the trusts have no direct recourse to the Company’s assets, and holders of the securities issued by the trusts can look only to the assets of the securitization trusts that issued their securities for payment. The beneficial interests held by the Company are subject principally to the credit and prepayment risk stemming from the underlying unsecured personal whole loans. See “Note 8. Fair Value of Assets and Liabilities” for additional information on the fair value sensitivity of asset-backed securities related to Structured Program transactions.
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Fair Value of Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities For a description of the fair value hierarchy and the Company’s fair value methodologies, see “Part II – Item 8. Financial Statements and Supplementary Data – Note 2. Summary of Significant Accounting Policies” in the Annual Report. The Company records certain assets and liabilities at fair value as listed in the following tables. Financial Instruments, Assets and Liabilities Recorded at Fair Value The following tables present the fair value hierarchy for assets and liabilities measured at fair value at September 30, 2020 and December 31, 2019:
As presented in the tables above, the Company has elected the fair value option for certain liabilities. Changes in the fair value of these financial liabilities caused by a change in the Company’s risk are reported in other comprehensive income (OCI). For the third quarter and first nine months of 2020, the amount reported in OCI is zero because these financial liabilities are either payable only upon receipt of cash flows from underlying loans or secured by cash collateral. Financial instruments are categorized in the valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. Since the Company’s loans held for investment and related notes, certificates, and secured borrowings, loans held for sale, loan servicing rights, asset-backed securities related to Structured Program transactions, and loan trailing fee liability do not trade in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of these assets and liabilities. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, changes in fair value for assets and liabilities within the Level 2 or Level 3 categories may include changes in fair value that were attributable to observable and unobservable inputs, respectively. The Company primarily uses a discounted cash flow model to estimate the fair value of Level 3 instruments based on the present value of estimated future cash flows. This model uses inputs that are inherently judgmental and reflect our best estimates of the assumptions a market participant would use to calculate fair value. Due to changes in the availability of market observable inputs, the Company transferred $517 thousand of asset-backed securities related to Structured Program transactions out of Level 3 during the first nine months of 2020. The Company did not transfer any other assets or liabilities in or out of Level 3 during the first nine months of 2020 or year ended December 31, 2019. Fair valuation adjustments are recorded through earnings related to Level 3 instruments for the third quarters and first nine months of 2020 and 2019. Certain unobservable inputs may (in isolation) have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. When multiple inputs are used within the valuation techniques, a change in one input in a certain direction may be offset by an opposite change from another input. Loans Held for Investment, Notes, Certificates and Secured Borrowings Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans held for investment, notes, certificates and secured borrowings at September 30, 2020 and December 31, 2019:
Significant Recurring Level 3 Fair Value Input Sensitivity At September 30, 2020 and December 31, 2019, the discounted cash flow methodology used to estimate the note, certificate and secured borrowings’ fair values used the same projected net cash flows as their related loans. As demonstrated by the following tables, the fair value adjustments for loans held for investment and loans held for sale were largely offset by the corresponding fair value adjustments due to the payment dependent design of the notes, certificates and secured borrowings. Fair Value Reconciliation The following tables present additional information about Level 3 loans held for investment, loans held for sale, and notes, certificates and secured borrowings measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
Loans Invested in by the Company Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans invested in by the Company at September 30, 2020 and December 31, 2019:
Significant Recurring Level 3 Fair Value Input Sensitivity The fair value sensitivity of loans invested in by the Company to adverse changes in key assumptions as of September 30, 2020 and December 31, 2019, are as follows:
Fair Value Reconciliation The following tables present additional information about Level 3 loans invested in by the Company measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
Asset-Backed Securities Related to Structured Program Transactions Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for asset-backed securities related to Structured Program transactions at September 30, 2020 and December 31, 2019:
Significant Recurring Fair Value Input Sensitivity The following tables present adverse changes to the fair value sensitivity of Level 2 and Level 3 asset-backed securities related to Structured Program transactions to changes in key assumptions at September 30, 2020 and December 31, 2019:
Fair Value Reconciliation The following table presents additional information about Level 3 asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
Servicing Assets Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for servicing assets at September 30, 2020 and December 31, 2019:
Significant Recurring Level 3 Fair Value Input Sensitivity The Company’s selection of the most representative market servicing rates for servicing assets is inherently judgmental. The Company reviews third-party servicing rates for its loans, loans in similar credit sectors, and market servicing benchmarking analyses provided by third-party valuation firms, when available. The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions as of September 30, 2020 and December 31, 2019:
The following table presents the fair value sensitivity of servicing assets to adverse changes in key assumptions as of September 30, 2020 and December 31, 2019:
Fair Value Reconciliation The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
Loan Trailing Fee Liability Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loan trailing fee liability at September 30, 2020 and December 31, 2019:
Significant Recurring Level 3 Fair Value Input Sensitivity The fair value sensitivity of the loan trailing fee liability to adverse changes in key assumptions would not result in a material impact on the Company’s financial position. Fair Value Reconciliation The following table presents additional information about Level 3 loan trailing fee liability measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
Financial Instruments, Assets, and Liabilities Not Recorded at Fair Value The following tables present the fair value hierarchy for financial instruments, assets, and liabilities not recorded at fair value at September 30, 2020 and December 31, 2019:
(1) Carrying amount approximates fair value due to the short maturity of these financial instruments.
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Property, Equipment and Software, net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Equipment and Software, Net | Property, Equipment and Software, Net Property, equipment and software, net, consist of the following:
Depreciation and amortization expense on property, equipment and software was $11.4 million and $34.8 million for the third quarter and first nine months of 2020, respectively. Depreciation and amortization expense on property, equipment and software was $12.8 million and $38.8 million for the third quarter and first nine months of 2019, respectively. The Company recorded impairment expense on its leasehold improvements and furniture and fixtures of $0.4 million and $1.9 million for the third quarter and first nine months of 2020, respectively. There was no impairment expense for the Company’s leasehold improvements and furniture and fixtures in the third quarter and first nine months of 2019. The Company recorded impairment expense on its internally developed software of $0.2 million and $4.7 million for the third quarter and first nine months of 2020, respectively. The Company recorded impairment expense on its internally developed software of $0.2 million and $2.5 million for the third quarter and first nine months of 2019, respectively. The Company records impairment expense on its leasehold improvements and furniture and fixtures and its internally developed software in “Other general and administrative” and “Engineering and product development” expense, respectively, in the Condensed Consolidated Statements of Operations.
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Other Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other Assets Other assets consist of the following:
(1) As of September 30, 2020 and December 31, 2019, loans underlying loan servicing rights had a total outstanding principal balance of $11.2 billion and $14.1 billion, respectively.
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Intangible Assets |
9 Months Ended |
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Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets, net of accumulated amortization, was $12.2 million and $14.5 million at September 30, 2020 and December 31, 2019, respectively. Amortization expense associated with intangible assets for the third quarter and first nine months of 2020 was $0.8 million and $2.4 million, respectively. Amortization expense associated with intangible assets for the third quarter and first nine months of 2019 was $0.8 million and $2.7 million, respectively. There was no impairment loss for the third quarters and first nine months of 2020 and 2019.
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Accrued Expenses and Other Liabilities |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following:
(1) See “Note 18. Commitments and Contingencies” for further information.
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Debt |
9 Months Ended |
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Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facilities and Securities Sold Under Repurchase Agreements The Company may enter into arrangements in the ordinary course of business pursuant to which the Company can incur indebtedness. Below is a description of certain of these arrangements: Warehouse Credit Facilities Through wholly-owned subsidiaries, the Company entered into secured warehouse credit facilities (Warehouse Facility or Facilities), to finance the Company’s personal loans and auto refinance loans and to pay fees and expenses related to the applicable facilities. Each subsidiary entered into a credit agreement and security agreement with a commercial bank as administrative agent and a national banking association as collateral trustee and paying agent. The creditors of the Warehouse Facilities have no recourse to the general credit of the Company. As of September 30, 2020, the Company had two Warehouse Facilities used to finance personal loans. One Warehouse Facility has a borrowing capacity of $100.0 million on a revolving basis and has a “Commitment Termination Date” of December 2020, at which point the Company’s ability to borrow new funds under the respective facility ends. A contractual interest rate increase with respect to borrowed amounts outstanding that is expected to occur on the Commitment Termination Date has been deferred until March 31, 2021. The borrowing capacity under this facility steps down to $50.0 million on November 16, 2020, and the maximum advance rate against the borrowing base steps down to 50% at March 31, 2021 (with a further 50% reduction for loans that have been in the Warehouse Facility for more than 210 days). At December 31, 2020, if not terminated, amended, extended, or replaced, any outstanding debt would be repaid as an amortizing term loan (based on principal repayments of the financed personal loans) until the facility’s maturity date of December 2021. As of September 30, 2020, the Company had an outstanding balance of $18.5 million borrowed from this Warehouse Facility. The Company fully paid the outstanding balance in October 2020. The second Warehouse Facility with a borrowing capacity of $250.0 million and a Commitment Termination Date in October 2020 was fully paid as of September 30, 2020, was subsequently terminated and will not be renewed. A previously existing Warehouse Facility to finance auto refinance loans with a contractual maturity in June 2021 was fully paid as of September 30, 2020 and was terminated. Borrowings under these facilities bear interest at an annual benchmark rate of LIBOR (London Inter-bank Offered Rate) or at an alternative commercial paper rate (which is either (i) the per annum rate equivalent to the weighted-average of the per annum rates at which all commercial paper notes were issued by certain lenders to fund advances or maintain loans, or (ii) the daily weighted-average of LIBOR, as set forth in the applicable credit agreement), plus a spread ranging from 1.75% to 2.10%. Interest is payable monthly. Borrowings may be prepaid without penalty. In addition, the Warehouse Facilities require payment of a monthly unused commitment fee ranging from 0.375% to 0.875% per annum on the average undrawn portion available. The Warehouse Facilities contain certain covenants. As of September 30, 2020, the Company was in material compliance with all applicable covenants under the respective credit agreements. As of September 30, 2020 and December 31, 2019, the Company had $18.5 million and $387.3 million in aggregate debt outstanding under the Warehouse Facilities, with collateral consisting of loans at fair value of $26.3 million and $551.5 million included in “Loans held for sale by the Company at fair value,” respectively, and restricted cash of $2.2 million and $25.1 million included in the Condensed Consolidated Balance Sheets, respectively. Revolving Credit Facility In December 2015, the Company entered into a credit and guaranty agreement and a pledge and security agreement with several lenders and a financial services company, as collateral agent, for an aggregate $120.0 million secured revolving credit facility (Revolving Facility). The Company may borrow under the Revolving Facility until December 17, 2020. Repayment of any outstanding proceeds are payable on December 17, 2020, and may be prepaid without penalty. Borrowings under the Revolving Facility bear interest, at the Company’s option, at an annual rate of LIBOR plus a spread of 1.75% to 2.00%, which is fixed for a Company-selected interest period of one, two, three, six or twelve months, or at an alternative base rate (which is tied to either the prime rate, federal funds effective rate plus 0.50%, or the adjusted eurocurrency rate plus 1.00%, as defined in the credit agreement) plus a spread of 0.75% to 1.00%. Base rate borrowings may be prepaid at any time without penalty, however pre-payment of LIBOR-based borrowings before the end of the selected interest period may result in the Company incurring expense to compensate the lenders for their funding costs through the end of the interest period. Interest is payable quarterly. Additionally, the Company is required to pay a quarterly commitment fee to the lenders of between 0.25% and 0.375% per annum, depending on the Company’s total net leverage ratio, on the average undrawn portion available under the Revolving Facility. The Revolving Facility contains certain covenants. As of September 30, 2020, the Company was in material compliance with all applicable covenants in the credit and guaranty agreement. The Company had no debt outstanding under the Revolving Facility as of September 30, 2020 and $60.0 million in debt outstanding as of December 31, 2019. Repurchase Agreements The Company has entered into repurchase agreements pursuant to which the Company sold securities (subject to an obligation to repurchase such securities at a specified future date and price) in exchange for cash, primarily to finance securities retained from the Company’s Structured Program transactions. In certain cases, the Company is subject to margin calls based on the fair value of the securities to be repurchased. As of September 30, 2020 and December 31, 2019, the Company had $101.7 million and $140.2 million in aggregate debt outstanding under its repurchase agreements, respectively, of which, at September 30, 2020, $39.0 million had contractual repurchase dates ranging from October 2020 to March 2028 and $62.7 million is subject to a repurchase date in October 2020, which was subsequently replaced with a new repurchase facility having a repurchase date in September 2022 and no margin call provisions. The contractual repurchase dates correspond to either a set repurchase schedule or to the maturity dates of the underlying securities, which have a remaining weighted-average estimated life from 0.9 to 1.5 years. The repurchase agreements bear interest at a rate that is based on a benchmark of the three-month LIBOR rate or the weighted-average interest rate of the securities sold plus a spread of 0.65% to 2.50%. Securities sold are included in “Credit facilities and securities sold under repurchase agreements” on the Condensed Consolidated Balance Sheets. As of September 30, 2020 and December 31, 2019, the Company had $127.4 million and $174.8 million, respectively, of underlying assets sold under repurchase agreements. Payable to Structured Program Note and Certificate Holders The Company consolidates certain sponsored Structured Program transactions through master trusts consisting of $244.4 million in unsecured personal whole loans in aggregate. The trusts sold certificate participations and securities to third-party investors in an amount equal to approximately 95% of the loans for $228.7 million in net proceeds. The remaining certificate participations, securities, and residual interests were retained by the Company. The Company is the primary beneficiary of the trusts, which are consolidated. As of September 30, 2020 and December 31, 2019, the certificate participations and securities held by third-party investors of $173.4 million and $40.6 million are included in “Payable to Structured Program note and certificate holders at fair value” in the Condensed Consolidated Balance Sheets and were secured by loans held for investment and loans held for sale by the Company at fair value of $170.0 million and $40.3 million and restricted cash of $13.5 million and $2.9 million included in the Condensed Consolidated Balance Sheets, respectively.
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Stockholders' Equity |
9 Months Ended |
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Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock The Company authorized 10,000,000 shares of preferred stock with a par value of $0.01 per share. In February 2020, the Company filed Certificates of Designations with the Secretary of State of Delaware to designate, of the total authorized shares of preferred stock, 1,200,000 shares of Series A Preferred Stock and 600,000 shares of Series B Preferred Stock. As of September 30, 2020, there were 149,904 shares of Series A Preferred Stock outstanding and no shares of Series B Preferred Stock outstanding. Each share of Series A Preferred Stock will automatically convert into 100 shares of LendingClub common stock upon a permissible transfer to an unaffiliated third party (subject to adjustment and the other terms described in its respective Certificate of Designations), provided that upon such conversion, the holder, together with its affiliates, will not own or control, in the aggregate, more than 9.9% of the Company’s outstanding common stock. A permissible transfer is a transfer (a) to the Company; (b) in a widespread public distribution; (c) in which no one transferee (or group of associated transferees) would receive 2% or more of any class of the Company’s voting securities then outstanding (including pursuant to a related series of such transfers); or (d) to a transferee that would control more than 50% of the Company voting securities (not including voting securities such person is acquiring from the transferor). The shares of Series A Preferred Stock have no voting rights, except as otherwise required by the General Corporation Law of the State of Delaware. The Series A Preferred Stock ranks pari passu with the common stock, and junior to any other series of preferred stock that is issued by the Company with respect to rights upon liquidation, winding up and dissolution and as to rights to dividends, provided, however, that in case of a liquidation, winding up or dissolution the Series A Preferred Stock has a right to receive $0.01 per share before any payment is made to the holders of LendingClub common stock, and will thereafter participate on a pari passu basis with the common stock. The Series B Preferred Stock, if issued, will (a) be nonredeemable; (b) have a minimum preferential quarterly dividend of $0.001 per share or any higher per share dividend declared on LendingClub common stock; (c) in the event of a liquidation be entitled to receive a preferred liquidation payment equal to $0.001 per share plus the per share amount paid in respect of a share of LendingClub common stock; (d) will have one vote, voting together with LendingClub common stock; and (e) in the event of any merger, consolidation or other transaction in which shares of LendingClub common stock are exchanged, will be entitled to receive the per share amount paid in respect of each share of LendingClub common stock. The rights of holders of the Series B Preferred Stock with respect to dividends, liquidation and voting, and in the event of mergers and consolidations, are protected by customary antidilution provisions. There are no issued Series B Preferred Stock. Issuance of Series A Preferred Stock in Exchange for Common Stock In February 2020, the Company and Radius Bancorp, Inc. (Radius) entered into an Agreement and Plan of Merger (Merger Agreement), by and among the Company, a wholly owned-subsidiary of the Company, and Radius, pursuant to which the Company will acquire Radius and thereby acquire its wholly-owned subsidiary, Radius Bank (the Merger). In connection with the Merger and in order to facilitate compliance with federal banking regulations by Shanda, in February 2020, the Company also entered into a Share Exchange Agreement (the Exchange Agreement) pursuant to which Shanda exchanged all of its shares of the Company’s common stock (with voting rights), or 19,562,881 shares, for Series A Preferred Stock, or 195,628 shares, and a one-time cash payment of $50.2 million. The Exchange Agreement imposes certain restrictions and obligations on Shanda so as to ensure that its ownership of LendingClub securities and activities will not impede LendingClub’s ability to obtain the necessary bank regulatory approvals. On the date of the Exchange Agreement, the effective conversion price for the Series A Preferred Stock was less than the fair value of the common stock, resulting in a beneficial conversion feature that the Company recognized as a deemed dividend to the preferred stockholders and, accordingly, an adjustment to net loss to arrive at net loss attributable to common stockholders. As a result, the Company recorded the deemed dividend of $50.2 million within accumulated deficit for the quarter ended March 31, 2020. There were no other deemed dividends recorded during the first nine months of 2020. Shareholder Protection Agreement In February 2020, the board of directors of the Company adopted a Temporary Bank Charter Protection Agreement (Protection Agreement) and simultaneously declared a dividend of one right for each outstanding share of LendingClub common stock (each such right, a “Common Right”) and one right for each outstanding share of Series A Preferred Stock (each such right, a “Series A Preferred Right” and, together with the Common Rights, the “Rights”) to stockholders of record at the close of business on March 19, 2020. The Protection Agreement provides for the dilution of any person or group of persons that acquires: (i) 25% or more equity interest in the Company, or (ii) 10.0% or more of any class of the Company’s voting securities. The Rights shall be issued between March 19, 2020 and the earlier of the Merger or 18 months. Each Common Right entitles the registered holder to purchase one one-thousandth of a share (a “Unit”) of Series B Preferred Stock, at a purchase price of $48.00 per Unit. Each Series A Preferred Right entitles the registered holder to purchase one share of Series A Preferred Stock, at a purchase price of $4,800.00 per share. The Protection Agreement is effective from February 18, 2020 (Effective Date) through the earlier of the closing of the Merger or the 18 month anniversary of the Effective Date. Retirement of treasury stock In the first quarter 2020, we retired 467,049 shares, or $19.6 million, of common stock previously held as treasury shares. The Company also retired the 19,562,881 shares of common stock acquired from Shanda as part of the Exchange Agreement. These retirements reduced the number of issued shares of common stock by that same amount. Under the applicable state law, these shares resume the status of authorized and unissued shares upon retirement. Since the repurchase price was lower than the original issuance price, the excess of share repurchase price over par value was recorded to additional paid-in capital.
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Employee Incentive Plans |
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Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Incentive Plans | Employee Incentive Plans The Company’s 2014 Equity Incentive Plan (EIP) provides for granting awards, including restricted stock units (RSUs), performance-based restricted stock units (PBRSUs) and stock options to employees, officers and directors. Stock-based Compensation Stock-based compensation expense was as follows for the periods presented:
The following table presents the Company’s stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations:
The Company capitalized $1.2 million and $4.0 million of stock-based compensation expense associated with developing software for internal use during the third quarter and first nine months of 2020, respectively. The Company capitalized $1.4 million and $5.0 million of stock-based compensation expense associated with developing software for internal use during the third quarter and first nine months of 2019, respectively. Restricted Stock Units The following table summarizes the activities for the Company’s RSUs during the first nine months of 2020:
During the first nine months of 2020, the Company granted 10,622,273 RSUs with an aggregate fair value of $99.3 million. As of September 30, 2020, there was $136.1 million of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over the next 2.9 years. Performance-based Restricted Stock Units PBRSUs are equity awards that are earned, and eligible for time-based vesting, based upon the achievement of certain pre-established performance metrics over a specific performance period. Depending on the level of achievement of the pre-established performance targets, the PBRSUs earned and eligible for time-based vesting can range from 0% to 200% of the target amount. PBRSUs granted under the Company’s EIP generally have a one-year performance period with the earned shares, if any, vesting over an additional approximately two-year period. Over the performance period, the number of PBRSUs that may be earned and the related stock-based compensation expense that is recognized is adjusted upward or downward based upon the probability of achieving the pre-established performance metrics. The following table summarizes the activities for the Company’s PBRSUs during the first nine months of 2020:
For the third quarter and first nine months of 2020, the Company recognized $0.7 million and $1.8 million in stock-based compensation expense related to PBRSUs, respectively. For the third quarter and first nine months of 2019, the Company recognized $1.0 million and $3.5 million in stock-based compensation expense related to PBRSUs, respectively. As of September 30, 2020, there was $6.3 million of unrecognized compensation cost related to unvested PBRSUs, which is expected to be recognized over the next 2.4 years. Employee Stock Purchase Plan In connection with the Company’s cost structure simplification efforts, future purchases through the Company’s employee stock purchase plan (ESPP) were suspended effective upon the completion of the most recent offering period on May 10, 2019.
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Income Taxes |
9 Months Ended |
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Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the third quarter and first nine months of 2020, the Company recorded an income tax benefit of $74 thousand and an income tax expense of $245 thousand, respectively. This is primarily attributable to the tax effects of other comprehensive income associated with the Company’s available for sale portfolio. For the third quarter and first nine months of 2019, the Company recorded an income tax expense of $97 thousand and an income tax benefit of $341 thousand, respectively. This is primarily attributable to the tax effects of other comprehensive income associated with the Company’s available for sale portfolio. The Company continues to recognize a full valuation allowance against net deferred tax assets. This determination was based on the assessment of the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets.
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Leases |
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Leases | Leases The Company has operating leases for its headquarters in San Francisco, California, as well as additional office space for its origination and servicing operations in the Salt Lake City area, Utah, and Westborough, Massachusetts. As of September 30, 2020, the lease agreements have remaining lease terms ranging from approximately one year to nine years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. In addition, the Company is the sublessor of a portion of its office space in San Francisco, with lease terms of one year to two years. As of September 30, 2020, the Company pledged $0.8 million of cash and $5.5 million in letters of credit as security deposits in connection with its lease agreements. The Company entered into lease amendments during the second quarter of 2020 due to COVID-19. The Company has elected to remeasure the lease liability using the original discount rate with an adjustment to the ROU Asset by the amount of the remeasurement. This accounting policy election did not have a material impact to the Company’s financial position, results of operations, cash flows, or disclosures. The Company reviewed operating lease ROU assets for impairment. In June 2020, the Company terminated one of its operating leases resulting in a reduction in the operating lease liability of $6.1 million and a corresponding reduction in the operating lease asset of $5.3 million. For the third quarter and first nine months of 2020, the Company recognized impairment expense of $0.9 million and $3.6 million, net, respectively, for several of its operating lease assets, included in Other general and administrative expense on the Company’s Condensed Consolidated Statement of Operations. No impairment expense was recorded in the third quarter and first nine months of 2019. Balance sheet information as of September 30, 2020 related to leases was as follows:
Components of net lease costs for the third quarters and first nine months of 2020 and 2019 were as follows:
Supplemental cash flow information related to the Company’s operating leases for the third quarters of 2020 and 2019 was as follows:
The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of September 30, 2020 were as follows:
The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows:
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments For discussion regarding the Company’s operating lease commitments, see “Note 17. Leases.” Loan Purchase Obligation Under the Company’s loan account program with WebBank, which serves as the Company’s primary issuing bank for loans facilitated through the Company’s platform, WebBank retains ownership of the loans it originates for two business days after origination. As part of this arrangement, the Company is committed to purchase any loans that have been fully approved at par plus accrued interest, at the conclusion of the two business days. As of September 30, 2020 and December 31, 2019, the Company was committed to purchase loans with an outstanding principal balance of $8.5 million and $91.3 million at par, respectively. Loan Repurchase Obligations The Company is generally required to repurchase loans or interests therein in the event of identity theft or certain other types of fraud on the part of the borrower or education and patient service providers. The Company may also repurchase loans or interests therein in connection with certain customer accommodations. In connection with certain whole loan and Certificate Program sales, as well as to facilitate access to securitization markets, the Company has agreed to repurchase loans if representations and warranties made with respect to such loans are breached under certain circumstances. In the case of certain securitization transactions, the Company has also agreed to repurchase or substitute loans for which a borrower fails to make the first payment due under a loan. The Company believes such provisions are customary and consistent with institutional loan and securitization market standards. In addition to and distinct from the repurchase obligations described in the preceding paragraph, the Company performs certain administrative functions for a variety of retail and institutional investors, including executing, without discretion, loan investments as directed by the investor. To the extent loans do not meet the investor’s investment criteria at the time of issuance, or are transferred to the investor as a result of a system error by the Company, the Company repurchases such loans or interests therein at par. As a result of the loan repurchase obligations described above, the Company repurchased $2.8 million and $4.2 million in loans or interests therein during the first nine months of 2020 and 2019, respectively. Purchase Commitments As required by applicable regulations, the Company must make firm offers of credit with respect to prescreened direct mail it sends out to prospective applicants provided such applicants continue to meet the credit worthiness criteria which were used to screen them at the time of their application and the application is completed prior to the offer’s stated expiration date. If such loans are accepted by the applicants but not otherwise funded by investors on the platform, the Company is required to facilitate funding for the loans directly with its issuing bank partners at minimum amounts, which are generally below the requested loan amount. The Company was required to purchase approximately $414 thousand of such loans during the third quarter of 2020. During the month of October 2020, none of these loans were required to be purchased by the Company. In addition, if neither the Company nor Springstone can arrange for other investors to invest in or purchase loans that the Company or Springstone facilitates and that are originated by an issuing bank partner but do not meet the credit criteria for purchase by the issuing bank partner, the Company and Springstone are contractually committed to purchase these loans. As of both September 30, 2020 and December 31, 2019, the Company had a $9.0 million deposit in a bank account to secure potential future purchases of these loans, if necessary. The funds are recorded as restricted cash on the Company’s Condensed Consolidated Balance Sheets. During the first nine months of 2020, the Company was required to purchase $28.9 million of loans facilitated by Springstone. These purchased loans are held on the Company’s Condensed Consolidated Balance Sheets and have a fair value of $4.5 million and $45.7 million as of September 30, 2020 and December 31, 2019, respectively. The Company believes it will be required to purchase certain loans facilitated by the Company during the remainder of 2020 as it seeks to arrange for other investors to invest in or purchase these loans. Acquisition-related Commitments On February 18, 2020, the Company and Radius entered into an Agreement and Plan of Merger (as previously discussed in “Note 14. Stockholders' Equity”), in a cash and stock transaction valued at $185 million, subject to certain purchase price and expense adjustments of up to $22 million. The Company has entered into acquisition-related agreements, which include contingent fees of approximately $3 million as of September 30, 2020, due upon closing of the transaction. Legal The Company is subject to various claims brought in a litigation or regulatory context. These matters include lawsuits and federal regulatory litigation, including but not limited to putative class action lawsuits, derivative lawsuits, and litigation with the FTC. In addition, the Company continues to cooperate in federal and state regulatory examinations, investigations, and actions relating to the Company’s business practices and licensing, and is a party to a number of routine litigation matters arising in the ordinary course of business. The majority of these claims and proceedings relate to or arise from alleged state or federal law and regulatory violations, or are alleged commercial disputes or consumer complaints. The Company accrues for costs related to contingencies when a loss from such claims is probable and the amount of loss can be reasonably estimated. In determining whether a loss from a claim is probable and the loss can be reasonably estimated, the Company reviews and evaluates its litigation and regulatory matters on at least a quarterly basis in light of potentially relevant factual and legal developments. If the Company determines an unfavorable outcome is not probable or the amount of loss cannot be reasonably estimated, the Company does not accrue for a potential litigation loss. In those situations, the Company discloses an estimate or range of the reasonably possible losses, if such estimates can be made. Except as otherwise specifically noted below, at this time, the Company does not believe that it is possible to estimate the reasonably possible losses or a range of reasonably possible losses related to the matters described below. FTC Lawsuit In 2016, the Company received a formal request for information from the Federal Trade Commission (FTC). The FTC commenced an investigation concerning certain of the Company’s policies and practices and related legal compliance. On April 25, 2018, the FTC filed a complaint in the Northern District of California (FTC v. LendingClub Corporation, No. 3:18-cv-02454) alleging causes of action for violations of the FTC Act, including claims of deception in connection with disclosures related to the origination fee associated with loans available through the Company’s platform, and in connection with communications relating to the likelihood of loan approval during the application process, and a claim of unfairness relating to certain unauthorized charges to borrowers’ bank accounts. The FTC’s complaint also alleged a violation of the Gramm-Leach-Bliley Act regarding the Company’s practices in delivering its privacy notice. In June 2018, the Company brought a motion to dismiss the FTC’s complaint, which was heard on September 13, 2018. In an order dated October 3, 2018, the Court denied the motion in part and granted the motion in part, providing the FTC with leave to amend its pleadings. On October 22, 2018, the FTC filed an amended complaint which reasserted the same causes of action from the original complaint. On November 13, 2018, the Company filed an answer to the amended complaint. The FTC subsequently filed a motion seeking to strike certain affirmative defenses pled in the answer and the Company filed an opposition to the motion. On April 29, 2019, the Court issued a ruling denying the FTC’s motion in part and granting it in part and allowing the Company to replead certain of the affirmative defenses that were the subject of the FTC’s motion. The Company filed an amended answer in the case on May 29, 2019. The discovery period in the case is closed. On February 27, 2020, both the Company and the FTC filed various motions with the Court, including motions to exclude expert testimony and motions for summary judgment as to some or all of the claims in the case. The FTC also filed a motion for partial judgment on the pleadings in the case. These motions were heard by the Court on April 27, 2020. On June 1, 2020, the Court issued an order granting in part and denying in part both the Company’s and the FTC’s motions for summary judgment. The Court also denied the motions to exclude expert testimony and granted in part and denied in part the FTC’s motion for partial judgment on the pleadings. The FTC’s Gramm-Leach-Bliley Act claim has been dismissed from the case, but issues relating to the FTC’s three other claims will need to be tried. On July 30, 2020, the Company filed a motion to stay the litigation pending the U.S. Supreme Court’s decisions in two cases (F.T.C. v. Credit Bureau Center and AMG Capital Management, LLC v. F.T.C.) that raise the issue whether the FTC is entitled to seek monetary relief under Section 13(b) of the FTC Act. On August 20, 2020, the Court issued an order granting the Company’s motion to stay proceedings in the case until the U.S. Supreme Court issues its decision in the Credit Bureau Center and AMG Capital Management cases. As a result of this order, the trial that was scheduled for October 19, 2020 will need to be rescheduled at a later date following the Supreme Court’s ruling. The Company denies, and will continue to vigorously defend against, the claims remaining in this case. Notwithstanding the Company’s vigorous defense, the Company and the FTC have participated in voluntary settlement conferences and may engage in additional settlement discussions. No assurances can be given as to the timing, outcome or consequences of this matter. Class Action Lawsuits Following Announcement of FTC Litigation In May 2018, following the announcement of the FTC’s litigation against the Company, putative shareholder class action litigation was filed in the U.S. District Court of the Northern District of California (Veal v. LendingClub Corporation et.al., No. 5:18-cv-02599) against the Company and certain of its current and former officers and directors alleging violations of federal securities laws in connection with the Company’s description of fees and compliance with federal privacy law in securities filings. The Court appointed lead plaintiffs and lead counsel for the litigation in November 2018. On January 7, 2019, the lead plaintiffs filed a consolidated amended class action complaint which asserts the same causes of action as the original complaint and adds additional allegations. On March 8, 2019, the Company and the individual defendants in the case filed motions to dismiss the consolidated amended class action complaint. A hearing on these motions was held on September 26, 2019. On November 4, 2019, the Court issued a written order granting defendants’ motions to dismiss with leave to amend. Plaintiff filed a Second Amended Complaint on December 19, 2019, which modifies and adds certain allegations and drops one of the former officer defendants as a defendant in the case, but otherwise advances the same causes of action. Defendants filed a motion to dismiss the Second Amended Complaint on January 28, 2020. The Court heard argument on this motion on April 30, 2020. On June 12, 2020, the Court issued an order granting defendants’ motion without leave to amend, in part, and with leave to amend, in part. On July 27, 2020, the lead plaintiffs filed a notice with the Court indicating their intention not to file a Third Amended Complaint in this case and requesting that the Court enter judgment. The Court entered judgment and dismissed all claims in the case the same day. The lead plaintiffs have appealed the judgment to the U.S. Court of Appeals for the Ninth Circuit. The timing of a ruling in the appeal is uncertain. The Company denies and will vigorously defend against the allegations in the case. No assurances can be given as to the timing, outcome or consequences of this matter. In July 2019, a putative class action lawsuit was filed against the Company in federal court in the State of New York (Shron v. LendingClub Corp., 1:19-cv-06718) alleging various claims including fraud, unjust enrichment, breach of contract, and violations of the federal Truth-in-Lending Act and New York General Business Law sections 349 and 350, et seq., based on allegations, among others, that the Company made misleading or inadequate statements or omissions in relation to the total cost and origination fee associated with loans available through the Company’s platform. The plaintiff seeks to represent classes of similarly situated individuals in the lawsuit. The Company filed a motion to compel arbitration of plaintiff’s claims on an individual basis. The Court denied that motion on July 13, 2020. The Company has filed a notice of appeal with respect to the Court’s decision. The parties have reached a tentative settlement to resolve this litigation the terms of which are not material to the Company’s financial position or results of operations. The Company denies and will vigorously defend against the allegations in the case in the event this litigation continues for any reason. No assurances can be given as to the timing, outcome or consequences of this matter. Derivative Lawsuits Following FTC Litigation In July 2018, a putative shareholder derivative action was filed in the U.S. District Court for the Northern District of California (Baron v. Sanborn, et al. No. 3:18-cv-04391) against certain of the Company’s current and former officers and directors and naming the Company as a nominal defendant. This action is based on allegations that the individuals breached their fiduciary duties to the Company and violated federal securities laws by, among other things, permitting the actions alleged in the FTC litigation and the description of fees and other practices in the Company’s securities filings. In January 2019, a second putative shareholder derivative action was filed in the U.S. District Court for the Northern District of California (Cheekatamarla v. Sanborn, et al., No. 3:19-cv-00563) against certain of the Company’s current officers and directors and naming the Company as a nominal defendant. Like the Baron action, this action is based on allegations that the individuals breached their fiduciary duties to the Company and violated federal securities laws by, among other things, permitting the actions alleged in the FTC litigation and the description of fees and other practices in the Company’s securities filings. Pursuant to a stipulation by the parties in both of these derivative cases, the Court consolidated the two cases and stayed the consolidated action pending further developments in Veal. In September 2019, co-lead counsel for plaintiffs in the consolidated action filed a notice and proposed order to lift the temporary stay and the Court issued an order lifting the stay. Subsequent to this order, the case was reassigned and the new Court issued an order staying the consolidated action pending resolution of the Veal action. On July 27, 2020, the Court issued an order lifting the stay in the consolidated action in light of the Court’s entry of judgment in the Veal action. On August 11, 2020, pursuant to a stipulation by the parties to the case, the Court issued an order approving the voluntary dismissal of the Baron and Cheekatamarla actions without prejudice. As a result, these actions are no longer pending. In August 2019, a putative shareholder derivative action was filed in the Court of Chancery for the State of Delaware (Fisher v. Sanborn, et al., Case No. 2019-0631) against certain of the Company’s current and former officers and directors and naming the Company as a nominal defendant. This lawsuit advances allegations similar to those in the consolidated Baron/Cheekatamarla actions and the Veal action discussed above and accuses the individual defendants of breaching their fiduciary duties by failing to adequately monitor the Company and prevent it from engaging in the purported regulatory violations alleged by the FTC and by causing the Company to make allegedly false and misleading public statements (as alleged in the Veal action). The lawsuit also alleges that certain of the individual defendants breached their fiduciary duties by selling Company shares while in possession of material, non-public information. On October 11, 2019, the Company and the individual defendants filed a motion to dismiss the complaint. In November 2019, rather than oppose defendants’ motion to dismiss, the plaintiff filed an amended complaint. That same month, the Company and the individual defendants named in the amended complaint filed a motion to dismiss that amended complaint. On January 17, 2020, rather than oppose defendants’ motion to dismiss, the plaintiff filed a second amended complaint. On January 24, 2020, defendants filed a motion to strike the second amended complaint as improper. The Court denied the defendants’ motion to strike and allowed the plaintiff to advance the second amended complaint as the operative complaint in the case. The defendants have filed a motion to dismiss the second amended complaint which was heard by the Court on July 2, 2020. It is unclear when the Court will issue a ruling on the motion. No assurances can be given as to the timing, outcome or consequences of this matter. Regulatory Investigation by the State of Massachusetts In June 2018, the Company received a civil investigative demand from the office of the Attorney General of the State of Massachusetts. The investigation related to the advertisement, provision and servicing of personal loans to Massachusetts’ consumers facilitated by the Company, including the Company’s compliance with the Massachusetts Small Loan Law and the Small Loan Rate Order promulgated under it. The Company cooperated with the investigation and finalized an Assurance of Discontinuance in January 2020 with the Attorney General’s Office to resolve the investigation, the terms of which are not material to the Company’s financial position or results of operations. In December 2019, the Massachusetts Division of Banks raised concerns pertaining to the Company’s compliance with the Massachusetts Small Loan Law similar to those the Massachusetts Attorney General’s Office raised during its investigation of the Company. No assurances can be given as to the timing, outcome or consequences of this matter; however, it could result in claims or actions against the Company, including litigation, regulatory enforcement actions, injunctions, monetary damages, restitution, fines or penalties, impact our licenses in Massachusetts, or require us to change our business practices or expend operational resources, all of which could result in a material loss or otherwise harm our business. Regulatory Examinations and Actions Relating to the Company’s Business Practices and Licensing The Company has been subject to periodic inquiries and enforcement actions brought by federal and state regulatory agencies relating to the Company’s business practices, the required licenses to operate its business, and its manner of operating in accordance with the requirements of its licenses. In the past, the Company has successfully resolved inquiries in a manner that was not material to its results of financial operations in any period and that did not materially limit the Company’s ability to conduct its business. The Company has had discussions with the Colorado Department of Law (CDL) concerning the licenses required for the Company’s servicing operations and the structure of its offerings in the State of Colorado. The Company has also had discussions with the CDL about entering into a terminable agreement with the CDL to, among other things: (i) toll the statutes of limitations on any action the CDL might bring against the Company based on the rates and charges on loans the Company facilitates and (ii) refrain from facilitating certain loans to borrowers located in Colorado available for investment by certain investors. No assurances can be given as to the timing, outcome or consequences of this matter. However, given the settlement in cases between the Colorado Administrator of the Uniform Consumer Credit Code and the Colorado Attorney General and each of Avant, Inc. and Marlette Funding, the Company is taking steps to ensure that its operations in Colorado conform to the 36% APR safe harbor set forth in the settlement. The Company is routinely subject to examination for compliance with applicable laws and regulations in the states in which it is licensed. As of the date of this Report, the Company is subject to examination by the New York Department of Financial Services (NYDFS) and other regulators. The Company periodically has discussions with various regulatory agencies regarding its business model and has engaged in similar discussions with the NYDFS. During the course of such discussions with the NYDFS, which remain ongoing, the Company decided to voluntarily comply with certain rules and regulations of the NYDFS. No assurances can be given as to the timing, outcome or consequences of this matter or others if or as they arise. Putative Class Actions In February 2020, a putative class action lawsuit was filed against the Company in the U.S. District Court for the Northern District of California (Erceg v. LendingClub Corporation, No. 3:20-cv-01153). The lawsuit alleges violations of California and Massachusetts law based on allegations that LendingClub recorded a call with plaintiff without notifying him that it would be recorded. Plaintiff seeks to represent a purported class of similarly situated individuals who had phone calls recorded by LendingClub without their knowledge and consent. LendingClub filed a motion to dismiss certain of plaintiff’s claims, strike nationwide class allegations, and, alternatively, to stay the litigation. Rather than oppose that motion, plaintiff filed an amended complaint. The Company again filed a motion to stay, or alternatively to dismiss certain of the claims in the amended complaint and to strike nationwide class allegations. That motion was heard by the Court on July 9, 2020. On July 28, 2020, the Court entered an order granting the Company’s motion to stay Plaintiff’s California claims pending a decision by the California Supreme Court in a case involving the California Invasion of Privacy Act, dismissing with prejudice Plaintiff’s claim under Massachusetts law, and denying the Company’s motion to strike Plaintiff’s nationwide class allegations. No assurances can be given as to the timing, outcome or consequences of this matter. In July 2020, a putative class action lawsuit was filed against the Company in the U.S. District Court for the Southern District of New York (Sosa v. LendingClub Corporation, No. 1:20-cv-05256). The lawsuit alleges violations of the Americans with Disabilities Act and various state law claims based on allegations that the plaintiff, who alleges he is visually-impaired, encountered access barriers in visiting LendingClub’s website that denied the plaintiff the full enjoyment of the services of the website. The plaintiff seeks to represent a class of similarly situated individuals in the lawsuit and seeks monetary, injunctive, and declaratory relief, among other relief. In September 2020, LendingClub filed an answer to plaintiff’s complaint denying liability in the case. This case is in its early stages. No assurances can be given as to the timing, outcome or consequences of this matter. California Private Attorneys General Lawsuit In September 2018, a putative action under the California Private Attorney General Act was brought against the Company in the California Superior Court (Brott v. LendingClub Corporation, et al., CGC-18-570047) alleging violations of the California Labor Code. The complaint by a former employee alleges that the Company improperly failed to pay certain hourly employees for all wages owed, pay the correct rate of pay including overtime, and provide accurate wage statements. The lawsuit alleges that the plaintiff and aggrieved employees are entitled to recover civil penalties under the California Labor Code. On January 11, 2019, the Company filed a petition to compel arbitration of the plaintiff’s claims and stay the litigation pending a ruling on the motion and arbitration of the matter. Pursuant to the parties’ stipulation, in March 2019, the Court issued an order staying the lawsuit pending the parties’ participation in a mediation in September 2019. The parties have reached a resolution of this matter, the terms of which are not material to the Company’s financial position or results of operations. The resolution will require court approval. The parties have finalized a written settlement agreement and will seek the Court’s approval of the negotiated resolution. A hearing before the Court is scheduled for November 18, 2020, where it is expected that the Court will consider the settlement. Certain Financial Considerations Relating to Litigation and Investigations With respect to the matters discussed above, the Company had $22.3 million and $16.0 million in accrued contingent liabilities at September 30, 2020 and December 31, 2019, respectively. In addition to the foregoing, the Company is subject to, and may continue to be subject to, legal proceedings and regulatory actions in the ordinary course of business. No assurance can be given as to the timing, outcome or consequences of any of these matters.
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Restructuring Costs |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | Restructuring Costs On April 20, 2020, the Company approved a restructuring plan to address the impact of COVID-19 on the Company’s business. The restructuring plan was completed on April 21, 2020 and resulted in a reduction of approximately 30% of the Company’s workforce. During the third quarter the Company recorded $0.8 million in restructuring costs within operating expenses, which was comprised of $(0.5) million in compensation costs related to changes in estimates from the second quarter of 2020, $1.3 million in related non-cash lease expenses and impairment, and no impairment of internally developed software. During the first nine months of 2020, the Company recorded $17.8 million in restructuring costs within operating expenses. which was comprised of $8.0 million in compensation costs, $5.6 million in related non-cash lease expenses and impairment, and $4.2 million in impairment of internally developed software. No such costs were recorded in the third quarter and first nine months of 2019. Of the $8.0 million in compensation costs expensed, $7.9 million was paid out during the second and third quarters of 2020, resulting in a restructuring liability of $0.1 million, included in “Accrued expenses and other liabilities” on the Condensed Consolidated Balance Sheet, as of September 30, 2020. The following table presents the restructuring costs for the third quarter and first nine months of 2020 recorded in the Company’s Condensed Consolidated Statements of Operations:
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Segment Reporting |
9 Months Ended |
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Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company defines operating segments to be components of the Company for which discrete financial information is evaluated regularly by the Company’s executive management committee as chief operating decision maker (CODM). For purposes of allocating resources and evaluating financial performance, the Company’s CODM reviews financial information by loan product types of personal, education and patient finance, and auto. These product types are individually reviewed as operating segments but are aggregated to represent one reportable segment because the education and patient finance and auto loan product types are immaterial both individually and in the aggregate. In the second quarter of 2019, the Company sold certain assets relating to its small business operating segment and announced that it will connect applicants looking for a small business loan with strategic partners and earn referral fees, instead of facilitating these loans on its platform. All of the Company’s revenue is generated in the United States. No individual borrower or investor accounted for 10% or more of consolidated net revenue for any of the periods presented.
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Related Party Transactions |
9 Months Ended |
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Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Related party transactions must be reviewed and approved by the Audit Committee of the Company’s board of directors when not conducted in the ordinary course of business subject to the standard terms of the Company’s lending marketplace or certificate investment program. Any material amendment or modification to an existing related party transaction is also subject to the review and approval of the Audit Committee. Related party transactions may include any transaction between entities under common control or with a related person that has occurred since the beginning of the Company’s latest fiscal year or is currently proposed. The Company has defined related persons as members of the board of directors, executive officers, principal owners of the Company’s outstanding stock and any immediate family members of each such related person, as well as any other person or entity with significant influence over the Company’s management or operations. Several of the Company’s executive officers and directors (including immediate family members) have made deposits and withdrawals to their investor accounts and purchased loans or interests therein. The Company believes all such transactions by related persons were made in the ordinary course of business and were transacted on terms and conditions that were not more favorable than those obtained by similarly situated third-party investors. In February 2020, the Company entered into an exchange agreement with its largest stockholder, Shanda, pursuant to which, in March 2020, Shanda exchanged all of 19,562,881 shares of LendingClub common stock held by it for (i) 195,628 newly issued shares of mandatorily convertible, non-voting, LendingClub preferred stock, series A, both with a par value of $0.01 per share, and (ii) a one-time cash payment of $50.2 million. See “Note 14. Stockholders' Equity,” for additional information. As of September 30, 2020, the Company had a $7.8 million investment and an approximate 23% ownership interest in an Investment Fund, a private fund that participates in a family of funds with other unrelated third parties. This family of funds purchases assets from third parties unrelated to the Company and historically purchased whole loans and interests in loans from the Company. The Company has requested a full redemption of our investment in the Investment Fund. The Company’s investment in the Investment Fund is recorded in “Other assets” on the Company’s Condensed Consolidated Balance Sheets. During the first nine months of 2019, the family of funds purchased $77 thousand of whole loans. The family of funds did not purchase whole loans during the first nine months of 2020. During the first nine months of 2020 and 2019, the Company earned $52 thousand and $74 thousand in investor fees from this family of funds, and paid interest of $140 thousand and $684 thousand on the funds’ interests in whole loans, respectively. The Company believes that the investor fees charged were on terms and conditions that were not more favorable than those obtained by other third-party investors. The Investment Fund provides audited financial statements annually and periodic investment statements throughout each calendar year on a delayed basis, which are used by the Company to evaluate performance and recoverability of our investment.
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to September 30, 2020, through the date the condensed consolidated financial statements were filed with the SEC. Based on this evaluation, other than as recorded or disclosed within these condensed consolidated financial statements and related notes, the Company has determined no additional subsequent events were required to be recognized or disclosed.
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Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Securities Available for Sale | Securities Available for Sale Debt securities that the Company might not hold until maturity are classified as securities available for sale. In structured program transactions that meet the applicable criteria to be accounted for as a sale, the Company retains certain asset-backed securities including subordinated residual interests and CLUB Certificates, which are classified as securities available for sale. On January 1, 2020, the entity adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) for securities available for sale. Asset-backed securities where the expected cash flows are significantly lower than that of the contractual future cash flows are considered to be purchased with credit deterioration (PCD). The discounted differential in expected and contractual cash flows is included with the purchase price of the asset to determine amortized cost of the security with an equal and offsetting valuation allowance for credit losses. Securities available for sale are recorded at fair value and unrealized gains and losses are reported, net of taxes, in “Accumulated other comprehensive income (loss)” included in Equity in the Company’s Consolidated Balance Sheets, unless management determines that the security is impaired due to a deterioration in expected cash flows, in which case the unrealized loss is recognized in earnings within “Net fair value adjustments” as a valuation allowance for credit losses (with the implementation of CECL) or other-than-temporary impairment (prior to the implementation of CECL) in the Company’s Condensed Consolidated Statements of Operations. Management evaluates whether debt securities available for sale with unrealized losses are impaired on a quarterly basis. If the Company intends to sell the security, or if it is more likely than not that it will be required to sell the security before recovery, an impairment is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the debt security. However, even if the Company does not expect to sell a debt security it must evaluate if a deterioration in cash flows exists. |
Accrued Interest Receivable on Loans | Accrued Interest Receivable on Loans The Company does not record an allowance for credit losses on accrued interest receivable. The Company places loans on non-accrual status at 90 days past due. When a loan is placed on non-accrual status, the Company stops accruing interest and reverses all accrued but unpaid interest income as of such date. The Company accrues interest income on loans on short term hardship programs using the effective interest rate method.
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Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share (Basic EPS) attributable to common stockholders is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share (Diluted EPS) is computed by dividing net income (loss) attributable to LendingClub by the weighted-average number of common shares outstanding during the period, adjusted for the effects of dilutive issuances of shares of common stock, which include incremental shares issued for outstanding RSUs, PBRSUs, and stock options. PBRSUs are included in dilutive shares to the extent the pre-established performance targets have been or are estimated to be satisfied as of the reporting date. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding RSUs, PBRSUs, and stock options are excluded from the computation of Diluted EPS in periods in which the effect would be antidilutive. For periods with more than one class of common shares, the Company computes Basic and Diluted EPS using the two-class method, which is an allocation of net income (loss) among the holders of each class of common shares. The Series A Preferred Stock is considered a separate class of common share for purposes of calculating net income (loss) per share because it participates in earnings similar to common stock and does not receive any significant preferences over the common stock. |
Beneficial Conversion Feature | Beneficial Conversion Feature The Company accounts for the beneficial conversion feature (BCF) on its Series A Preferred Stock in accordance with ASC 470-20, Debt with Conversion and Other Options. The Company accretes the BCF discount from the date of issuance to the earliest conversion date, which was March 20, 2020. All of the BCF discount was accreted and recognized as a deemed dividend in “Accumulated deficit” on the Company’s Condensed Consolidated Balance Sheets. See “Note 14. Stockholders' Equity” for additional information.
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Adoption of New Accounting Standards | Adoption of New Accounting Standards The Company adopted the following accounting standards during the nine month period ended September 30, 2020: On January 1, 2020, the entity adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. For loans accounted for at amortized cost, the guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. As the Company has elected the fair value option for loans and loans accounted for at fair value through net income are outside the scope of Topic 326, there is no impact on the Company’s loan portfolios. For debt securities available for sale, Topic 326 requires recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. Upon adoption, the amendments in Topic 326 are recognized through a cumulative-effect adjustment to retained earnings, except for debt securities with prior other-than-temporary impairment whereby Topic 326 is applied prospectively. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis remains the same before and after the effective date of ASC 326. The effective interest rate on these debt securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of January 1, 2020 relating to improvements in cashflows expected to be collected are accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after January 1, 2020 are recorded in earnings when received. Additionally, the Company adopted ASC 326 using the prospective transition approach for PCD financial assets. The Company did not have any previously classified assets as purchased credit impaired (PCI) under ASC 310-30. In accordance with this standard, management did not reevaluate for PCD upon transition. Adoption of Topic 326 did not have an impact on the Company’s financial position, results of operations, and cash flows. The Company did not record a cumulative effect adjustment to retained earnings. The Company included the disclosures required by ASU 2016-13 in “Note 5. Securities Available for Sale.” In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. The ASU eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and valuation processes for Level 3 fair value measurements. The ASU adds new disclosure requirements for Level 3 measurements. The new guidance became effective on January 1, 2020 and did not have a material impact on the Company’s related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software – (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which requires a customer in a hosting arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The standard became effective on January 1, 2020 and the Company adopted the standard using the prospective approach. The Company has reviewed existing cloud computing arrangements and determined which ones are service contracts. Implementation costs that are not from internal developers related to service contracts that satisfy the criteria for capitalization under ASC 350-40 will be presented with “Other assets” on the Company’s Consolidated Balance Sheets, amortization expense will be presented in the same line on the income statement as the fees for the associated hosted service on the Company’s Consolidated Statements of Operations, and the cash flows will be presented consistent with the presentation of cash flows for the fees related to the hosted service, generally as cash flows from operations, on the Company’s Consolidated Statements of Cash Flows. Adoption of the standard did not have a material impact on the Company’s financial position, results of operations, cash flows, or disclosures. New Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is part of the FASB’s initiative to reduce complexity in accounting standards. The proposed ASU eliminates certain exceptions to the general principles of ASC 740, Income Taxes, and simplifies income tax accounting in several areas. The standard is effective for fiscal periods beginning after December 15, 2020 with early adoption permitted. The Company is evaluating the impact this ASU will have on its financial position, results of operations, cash flows, and disclosures, but does not expect such adoption to have a material impact. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which, if certain criteria are met, provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. The provisions of the new standard may be adopted as of the beginning of the reporting period when the election is made until December 31, 2022. The Company is evaluating the impact this ASU will have on its financial position, results of operations, cash flows, and disclosures. The Company has not elected an adoption date. In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity including convertible instruments and contracts on an entity’s own equity. The guidance allows for either full or modified retrospective adoption for fiscal periods beginning after December 15, 2021 with early adoption permitted for fiscal periods beginning after December 15, 2020. The Company is evaluating the impact this ASU will have on its financial position, results of operations, cash flows, and disclosures.
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Revenue from Contracts with Customers (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue by Source | The following tables present the Company’s revenue from contracts with customers, disaggregated by revenue source for services transferred over time, for the third quarters and first nine months of 2020 and 2019:
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Net Income (Loss) Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Net Income (Loss) per Share | The following tables detail the computation of the Company’s basic and diluted net income (loss) per share of common stock and Series A Preferred Stock:
(2) See “Note 2. Summary of Significant Accounting Policies” and “Note 14. Stockholders' Equity” for additional information.
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the weighted-average common stock that were excluded from the Company’s diluted net income (loss) per share computation because their effect would have been anti-dilutive for the periods presented:
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Securities Available for Sale (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of securities available for sale as of September 30, 2020 and December 31, 2019, were as follows:
(2) As of September 30, 2020, and December 31, 2019, includes $127.4 million and $174.8 million, respectively, of securities pledged as collateral at fair value.
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Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | A summary of securities available for sale with unrealized losses for which an allowance for credit losses has not been recorded as of September 30, 2020 and December 31, 2019, aggregated by period of continuous unrealized loss, is as follows:
(1) The number of investment positions with unrealized losses at September 30, 2020 and December 31, 2019 totaled 94 and 70, respectively.
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Allowance for Credit Losses for Securities Available for Sale | The following table presents the activity in the allowance for credit losses for securities available for sale, by major security type, for the third quarter and first nine months of 2020:
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Available-for-sale Securities Purchased with Credit Deterioration | Securities available for sale purchased with credit deterioration during the third quarter and first nine months of 2020 were as follows:
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Available-for-sale Securities by Contractual Maturity | The contractual maturities of securities available for sale at September 30, 2020, were as follows:
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Schedule of Proceeds and Realized Gain (Loss) | Proceeds and gross realized gains and losses from other sales of securities available for sale were as follows:
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Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Notes and Certificates | At September 30, 2020 and December 31, 2019, loans held for investment, notes, certificates and secured borrowings measured at fair value on a recurring basis were as follows:
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Schedule of Outstanding Principal Balance of Notes, Certificates and Secured Borrowings at Fair Value | The following table provides the balances of notes, certificates and secured borrowings at fair value at the end of the periods indicated:
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Loans Invested in by Company | At September 30, 2020 and December 31, 2019, loans invested in by the Company for which there were no associated notes, certificates or secured borrowings (with the exception of $170.0 million and $40.3 million in loans at fair value in consolidated trusts as of September 30, 2020 and December 31, 2019, respectively) were as follows:
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Past Due Financing Receivables | Loans that were 90 days or more past due (including non-accrual loans) were as follows:
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Securitizations and Variable Interest Entities (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Select Information Related to VIEs | The following tables provide the classifications of assets and liabilities on the Company’s Condensed Consolidated Balance Sheets for its transactions with consolidated and unconsolidated VIEs at September 30, 2020 and December 31, 2019. Additionally, the assets and liabilities in the table below exclude intercompany balances that eliminate in consolidation:
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Summary of Activity Related to Personal Whole Loan Securitizations | The following tables summarize activity related to the Unconsolidated Trusts and Certificate Program trusts, with the transfers accounted for as a sale on the Company’s condensed consolidated financial statements for the third quarters and first nine months of 2020 and 2019:
(2) For Structured Program transactions, the Company retained asset-backed senior securities of $23.0 million and $60.0 million, CLUB Certificate asset-backed securities of $18.3 million and $77.7 million, and asset-backed subordinated securities of $2.9 million and $8.1 million for the first nine months of 2020 and 2019, respectively.
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Unconsolidated VIEs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Select Information Related to VIEs | The following tables summarize unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary at September 30, 2020 and December 31, 2019:
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Consolidated VIEs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Select Information Related to VIEs | The following tables present a summary of financial assets and liabilities from the Company’s involvement with consolidated VIEs at September 30, 2020 and December 31, 2019:
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Fair Value of Assets and Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy of Assets and Liabilities Measured on a Recurring Basis | The following tables present the fair value hierarchy for assets and liabilities measured at fair value at September 30, 2020 and December 31, 2019:
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Fair Value, by Balance Sheet Grouping | The following tables present the fair value hierarchy for financial instruments, assets, and liabilities not recorded at fair value at September 30, 2020 and December 31, 2019:
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Asset-backed Securities Related to Structured Program Transactions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for asset-backed securities related to Structured Program transactions at September 30, 2020 and December 31, 2019:
(1) Expressed as a percentage of the outstanding collateral balance.
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Fair Value Sensitivity of Loans | The following tables present adverse changes to the fair value sensitivity of Level 2 and Level 3 asset-backed securities related to Structured Program transactions to changes in key assumptions at September 30, 2020 and December 31, 2019:
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Fair Value, Liabilities Measured on Recurring Basis | The following table presents additional information about Level 3 asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
|
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Loans Invested in by Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans invested in by the Company at September 30, 2020 and December 31, 2019:
(1) Expressed as a percentage of the original principal balance of the loan.
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Fair Value of Assets Measured on a Recurring Basis | The following tables present additional information about Level 3 loans invested in by the Company measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
|
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Fair Value Sensitivity of Loans | The fair value sensitivity of loans invested in by the Company to adverse changes in key assumptions as of September 30, 2020 and December 31, 2019, are as follows:
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Servicing Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for servicing assets at September 30, 2020 and December 31, 2019:
(2) Includes collection fees estimated to be paid to a hypothetical third-party servicer.
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Fair Value of Assets Measured on a Recurring Basis | The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
|
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Fair Value Disclosure And Measurement | The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions as of September 30, 2020 and December 31, 2019:
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Fair Value Sensitivity of Servicing Assets | The following table presents the fair value sensitivity of servicing assets to adverse changes in key assumptions as of September 30, 2020 and December 31, 2019:
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Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans held for investment, notes, certificates and secured borrowings at September 30, 2020 and December 31, 2019:
(1) Expressed as a percentage of the original principal balance of the loan, note, certificate or secured borrowing.
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Fair Value of Assets Measured on a Recurring Basis | The following tables present additional information about Level 3 loans held for investment, loans held for sale, and notes, certificates and secured borrowings measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
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Loan Trailing Fee Liability | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loan trailing fee liability at September 30, 2020 and December 31, 2019:
(1) Expressed as a percentage of the original principal balance of the loan.
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Fair Value, Liabilities Measured on Recurring Basis | The following table presents additional information about Level 3 loan trailing fee liability measured at fair value on a recurring basis for the third quarters and first nine months of 2020 and 2019:
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Property, Equipment and Software, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Equipment and Software, Net | Property, equipment and software, net, consist of the following:
(1) Includes $14.5 million and $21.3 million of development in progress as of September 30, 2020 and December 31, 2019, respectively.
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Other Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other assets consist of the following:
(1) As of September 30, 2020 and December 31, 2019, loans underlying loan servicing rights had a total outstanding principal balance of $11.2 billion and $14.1 billion, respectively.
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Accrued Expenses and Other Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following:
(1) See “Note 18. Commitments and Contingencies” for further information.
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Employee Incentive Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Stock-based Compensation Expense | Stock-based compensation expense was as follows for the periods presented:
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Schedule of Stock-based Compensation Expense Recorded in Condensed Consolidated Statement of Operations | The following table presents the Company’s stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations:
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Schedule of RSU Activity | The following table summarizes the activities for the Company’s RSUs during the first nine months of 2020:
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Schedule of PBRSU Activity | The following table summarizes the activities for the Company’s PBRSUs during the first nine months of 2020:
(1) Primarily relates to the portion of PBRSUs granted in 2018 and 2019 that were unearned as a result of not achieving certain pre-established performance metrics during the performance period.
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Balance sheet information as of September 30, 2020 related to leases was as follows:
(1) The difference between operating lease assets and operating lease liabilities is the unamortized balance of deferred rent, which prior to January 1, 2019, was included as a separate liability within “Accrued expenses and other liabilities.
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Lease Costs | Components of net lease costs for the third quarters and first nine months of 2020 and 2019 were as follows:
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Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s operating leases for the third quarters of 2020 and 2019 was as follows:
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Future Minimum Undiscounted Lease Payments | The Company’s future minimum undiscounted lease payments under operating leases and anticipated sublease revenue as of September 30, 2020 were as follows:
(1) As of September 30, 2020, the Company entered into an additional operating lease which has not yet commenced and is therefore not part of the table above nor included in the lease right-of-use asset and liability. This lease will commence when the Company obtains possession of the underlying asset, which is expected to be on January 1, 2021. The lease term is 8.25 years and has an undiscounted future rent payment of approximately $8.6 million.
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Weighted-average Remaining Lease Term and Discount Rate | The weighted-average remaining lease term and discount rate used in the calculation of the Company’s operating lease assets and liabilities were as follows:
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Restructuring Costs Restructuring and Related Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Expense | The following table presents the restructuring costs for the third quarter and first nine months of 2020 recorded in the Company’s Condensed Consolidated Statements of Operations:
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Revenue from Contracts with Customers - Disaggregation of Revenue by Source (Details) - Transferred over Time - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ 25,636 | $ 162,801 | $ 167,992 | $ 452,428 |
Transaction fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 24,372 | 161,205 | 164,489 | 448,809 |
Referral fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ 1,264 | $ 1,596 | $ 3,503 | $ 3,619 |
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Revenue from Contract with Customer [Abstract] | |||||
Bad debt expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Contract assets | 0 | 0 | $ 0 | ||
Contract liabilities | 0 | 0 | 0 | ||
Deferred contract costs | 0 | 0 | $ 0 | ||
Revenue recognized from performance obligations related to prior periods | $ 0 | $ 0 | $ 0 | $ 0 |
Net Income (Loss) Per Share - Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Allocation of undistributed LendingClub net loss | $ (34,325) | $ (383) | $ (160,883) | $ (30,979) | |||
Common Stock | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Allocation of undistributed LendingClub net loss | (129,968) | (30,979) | |||||
Deemed dividend | (50,204) | 0 | |||||
Net loss attributable to stockholders | $ (27,779) | $ (383) | $ (180,172) | $ (30,979) | |||
Weighted-average common shares - Basic and Diluted (shares) | [1] | 73,566,385 | 87,588,495 | 76,781,157 | 86,849,388 | ||
Net loss per share attributable to common stockholders: | |||||||
Net income (loss) per share – Basic and Diluted ($ per share) | [1] | $ (0.38) | $ 0.00 | $ (2.35) | $ (0.36) | ||
Preferred Stock | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Allocation of undistributed LendingClub net loss | $ (30,915) | ||||||
Deemed dividend | $ (50,200) | 50,204 | |||||
Net loss attributable to stockholders | $ (6,546) | $ 19,289 | |||||
Weighted-average common shares - Basic and Diluted (shares) | [1] | 17,335,485 | 0 | 13,174,545 | 0 | ||
Net loss per share attributable to common stockholders: | |||||||
Net income (loss) per share – Basic and Diluted ($ per share) | [1] | $ (0.38) | $ 0.00 | $ 1.46 | $ 0.00 | ||
|
Net Income (Loss) Per Share - Conversion of Shares (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | |||
---|---|---|---|---|
Mar. 20, 2020 |
Feb. 29, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred stock, par value ($ per share) | $ 0.01 | |||
One-time cash payment | $ 50.2 | $ 50.2 | ||
Series A Preferred Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Preferred stock, par value ($ per share) | $ 0.01 | |||
Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Conversion of stock, shares converted | 19,562,881 | |||
Largest Stockholder | Series A Preferred Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Conversion of stock, shares issued | 195,628 | |||
Largest Stockholder | Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Conversion of stock, shares converted | 19,562,881 |
Net Income (Loss) Per Share - Shares Excluded from Calculation of Earnings (Loss) per Share (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares excluded (shares) | 18,256,944 | 713,488 | 13,587,443 | 665,788 |
Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares excluded (shares) | 17,335,485 | 0 | 13,174,545 | 0 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares excluded (shares) | 160,382 | 484,032 | 228,066 | 489,657 |
RSUs and PBRSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares excluded (shares) | 761,077 | 229,456 | 184,832 | 176,131 |
Securities Available for Sale - Amortized cost/fair value (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 205,997 | $ 271,173 | |
Gross Unrealized Gains | 1,456 | 1,078 | |
Gross Unrealized Losses | (2,536) | (1,324) | |
Allowance for Credit Losses | (17,542) | $ (15,571) | 0 |
Fair Value | 187,375 | 270,927 | |
Asset-backed senior securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 84,589 | 108,780 | |
Gross Unrealized Gains | 20 | 597 | |
Gross Unrealized Losses | (590) | (38) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 84,019 | 109,339 | |
Securities pledged as collateral at fair value | 127,400 | 174,800 | |
CLUB Certificate asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 71,487 | 90,728 | |
Gross Unrealized Gains | 288 | 41 | |
Gross Unrealized Losses | (1,569) | (1,063) | |
Allowance for Credit Losses | (4,500) | (6,587) | 0 |
Fair Value | 65,706 | 89,706 | |
Asset-backed subordinated securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 30,289 | 20,888 | |
Gross Unrealized Gains | 1,126 | 423 | |
Gross Unrealized Losses | (377) | (221) | |
Allowance for Credit Losses | (13,042) | $ (8,984) | 0 |
Fair Value | 17,996 | 21,090 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 6,999 | 9,274 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Allowance for Credit Losses | 0 | ||
Fair Value | 6,999 | 9,274 | |
Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 6,637 | 14,333 | |
Gross Unrealized Gains | 14 | 11 | |
Gross Unrealized Losses | 0 | (1) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 6,651 | 14,343 | |
Other asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,796 | 12,075 | |
Gross Unrealized Gains | 8 | 6 | |
Gross Unrealized Losses | 0 | (1) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 3,804 | 12,080 | |
Certificates of deposit | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 2,200 | 13,100 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Allowance for Credit Losses | 0 | ||
Fair Value | 2,200 | 13,100 | |
U.S. agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,995 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 1,995 | ||
Asset-backed securities, securitized loans and receivables, subject to restrictions on transfer | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair Value | $ 151,400 | $ 219,000 |
Securities Available for Sale - Continuous loss (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
position
|
Dec. 31, 2019
USD ($)
position
|
---|---|---|
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 80,061 | $ 99,025 |
Unrealized Losses, Less than 12 months | (2,394) | (1,289) |
Fair Value, 12 months or longer | 4,178 | 1,875 |
Unrealized Losses, 12 months or longer | (142) | (35) |
Fair Value | 84,239 | 100,900 |
Unrealized Losses | $ (2,536) | $ (1,324) |
Number of positions with unrealized losses | position | 94 | 70 |
Asset-backed securities related to Structured Program transactions | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 78,556 | $ 91,350 |
Unrealized Losses, Less than 12 months | (2,394) | (1,287) |
Fair Value, 12 months or longer | 4,178 | 1,875 |
Unrealized Losses, 12 months or longer | (142) | (35) |
Fair Value | 82,734 | 93,225 |
Unrealized Losses | (2,536) | (1,322) |
Corporate debt securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 1,301 | 4,613 |
Unrealized Losses, Less than 12 months | 0 | (1) |
Fair Value, 12 months or longer | 0 | 0 |
Unrealized Losses, 12 months or longer | 0 | 0 |
Fair Value | 1,301 | 4,613 |
Unrealized Losses | 0 | (1) |
Other asset-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 204 | 3,062 |
Unrealized Losses, Less than 12 months | 0 | (1) |
Fair Value, 12 months or longer | 0 | 0 |
Unrealized Losses, 12 months or longer | 0 | 0 |
Fair Value | 204 | 3,062 |
Unrealized Losses | $ 0 | $ (1) |
Securities Available for Sale - Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair value | ||
Fair value, within 1 year | $ 17,780 | |
Fair value, after 1 year through 5 years | 1,874 | |
Fair value | 187,375 | $ 270,927 |
Amortized cost | ||
Amortized cost, within 1 year | 17,766 | |
amortized cost, after 1 year through 5 years | 1,866 | |
Amortized Cost | 205,997 | 271,173 |
Commercial paper | ||
Fair value | ||
Fair value, within 1 year | 6,999 | |
Fair value | 6,999 | 9,274 |
Amortized cost | ||
Amortized cost, within 1 year | 6,999 | |
Amortized Cost | 6,999 | 9,274 |
Corporate debt securities | ||
Fair value | ||
Fair value, within 1 year | 6,651 | |
Fair value | 6,651 | 14,343 |
Amortized cost | ||
Amortized cost, within 1 year | 6,637 | |
Amortized Cost | 6,637 | 14,333 |
Certificates of deposit | ||
Fair value | ||
Fair value, within 1 year | 2,200 | |
Fair value | 2,200 | 13,100 |
Amortized cost | ||
Amortized cost, within 1 year | 2,200 | |
Amortized Cost | 2,200 | 13,100 |
Other asset-backed securities | ||
Fair value | ||
Fair value, within 1 year | 1,930 | |
Fair value, after 1 year through 5 years | 1,874 | |
Fair value | 3,804 | 12,080 |
Amortized cost | ||
Amortized cost, within 1 year | 1,930 | |
amortized cost, after 1 year through 5 years | 1,866 | |
Amortized Cost | 3,796 | $ 12,075 |
Asset-backed Securities Related to Structured Program Transactions | ||
Fair value | ||
Fair value | 167,721 | |
Amortized cost | ||
Amortized Cost | $ 186,365 |
Securities Available for Sale - Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for Credit Losses, beginning | $ (15,571) | $ 0 |
Provision for credit loss expense | 3,669 | (3,800) |
Allowance arising from PCD financial assets | (5,640) | (13,742) |
Allowance for credit losses, ending | (17,542) | (17,542) |
Asset-backed senior securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, ending | 0 | 0 |
CLUB Certificate asset-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for Credit Losses, beginning | (6,587) | 0 |
Provision for credit loss expense | 2,087 | (546) |
Allowance arising from PCD financial assets | 0 | (3,954) |
Allowance for credit losses, ending | (4,500) | (4,500) |
Asset-backed subordinated securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for Credit Losses, beginning | (8,984) | 0 |
Provision for credit loss expense | 1,582 | (3,254) |
Allowance arising from PCD financial assets | (5,640) | (9,788) |
Allowance for credit losses, ending | $ (13,042) | $ (13,042) |
Securities Available for Sale - Securities Purchased with Credit Deterioration (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Purchase price of PCD securities at acquisition | $ 446 | $ 25,915 |
Allowance for credit losses on PCD securities at acquisition | 5,640 | 13,742 |
Par value of acquired PCD securities at acquisition | $ 6,086 | $ 39,657 |
Securities Available for Sale - Additional information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Schedule of Securities Available-for-sale [Line Items] | ||||
Other-than-temporary impairment charges | $ 2,500,000 | |||
Credit losses recognized into earnings for other-than-temporary impaired securities | $ 0 | 0 | ||
Sale of asset-backed securities | $ 0 | 4,019,000 | $ 2,396,000 | 10,419,000 |
Asset-backed Securities Related to Structured Program Transactions | ||||
Schedule of Securities Available-for-sale [Line Items] | ||||
Credit loss expense | (3,700,000) | 3,800,000 | ||
Other-than-temporary impairment charges | 1,200,000 | |||
Other asset-backed securities | ||||
Schedule of Securities Available-for-sale [Line Items] | ||||
Sale of asset-backed securities | 200,000,000 | 1,200,000,000 | $ 1,300,000,000 | 3,200,000,000 |
Realized gains (losses) on sale of asset-backed securities | $ 0 | $ 0 | $ 0 |
Securities Available for Sale - Proceeds and Gross Realized Gains and Losses from Sales of Other Securities Available for Sale (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 0 | $ 4,019 | $ 2,396 | $ 10,419 |
Gross realized gains | 0 | 8 | 3 | 8 |
Gross realized losses | $ 0 | $ 0 | $ (4) | $ 0 |
Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings (Detail) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans held for investment at fair value | [1] | $ 708,274 | $ 1,079,315 | |
Notes, certificates and secured borrowings, fair value | [1] | 708,597 | 1,081,466 | |
Loans held for sale by the Company, fair value | [1] | 180,801 | 722,355 | |
Fair Value, Measurements, Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes | 631,169 | 863,488 | ||
Certificates | 74,487 | 197,842 | ||
Secured borrowings | 2,941 | 20,136 | ||
Notes, certificates and secured borrowings, fair value | 708,597 | 1,081,466 | ||
Fair Value, Measurements, Recurring | Loans Invested in by Company | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Aggregate principal balance outstanding | 268,981 | 794,436 | ||
Net fair value adjustments | (29,081) | (28,388) | ||
Fair value of loans invested in by the Company | 239,900 | 766,048 | ||
Fair Value, Measurements, Recurring | Loans Held for Investment | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Aggregate principal balance outstanding | 756,570 | 1,148,888 | ||
Net fair value adjustments | (48,296) | (69,573) | ||
Loans held for investment at fair value | 708,274 | 1,079,315 | ||
Fair Value, Measurements, Recurring | Loans Held for Investment | Loans Invested in by Company | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Aggregate principal balance outstanding | 66,232 | 47,042 | ||
Net fair value adjustments | (7,133) | (3,349) | ||
Loans held for investment at fair value | 59,099 | 43,693 | ||
Fair Value, Measurements, Recurring | Notes, Certificates and Secured Borrowings | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Aggregate principal balance outstanding | 756,570 | 1,148,888 | ||
Fair value adjustments | (47,973) | (67,422) | ||
Notes, certificates and secured borrowings, fair value | 708,597 | 1,081,466 | ||
Fair Value, Measurements, Recurring | Loans Held For Sale | Loans Invested in by Company | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Aggregate principal balance outstanding | 202,749 | 747,394 | ||
Net fair value adjustments | (21,948) | (25,039) | ||
Loans held for sale by the Company, fair value | $ 180,801 | $ 722,355 | ||
|
Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings - Past Due Table (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
Loan
|
Dec. 31, 2019
USD ($)
Loan
|
---|---|---|
Loans Held for Investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding principal balance | $ 4,140 | $ 10,755 |
Net fair value adjustments | (3,432) | (9,663) |
Fair value | $ 708 | $ 1,092 |
Number of loans (not in thousands) | Loan | 788 | 1,428 |
Loans Invested in by Company | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding principal balance | $ 2,116 | $ 2,315 |
Net fair value adjustments | (1,808) | (2,016) |
Fair value | $ 308 | $ 299 |
Number of loans (not in thousands) | Loan | 180 | 338 |
Loans Held For Investment, Loans Held For Sale, Notes, Certificates and Secured Borrowings - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Payable to Structured Program note and certificate holders at fair value (1) | [1] | $ 173,410 | $ 173,410 | $ 40,610 | ||||||
Net interest income | 13,637 | $ (8,868) | $ (46,515) | $ (29,113) | ||||||
Loans and Loans Held for Sale | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Nonaccrual policy | 90 days | |||||||||
Loans Invested in by Company | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Loans held for investment and loans held for sale, fair value | 239,900 | 714,381 | $ 239,900 | 714,381 | 766,048 | $ 652,650 | $ 440,110 | $ 842,604 | ||
Net change in fair value recorded in earnings on loans invested in by the Company | 4,272 | (32,419) | (100,270) | (100,127) | ||||||
Outstanding Principal Balance, Purchases | 27,957 | 1,532,707 | 1,431,527 | 3,566,428 | ||||||
Outstanding Principal Balance, Sales | 442,744 | 1,181,739 | 1,726,678 | 3,477,485 | ||||||
Fair Value, Measurements, Recurring | Loans Invested in by Company | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Net fair value adjustments | (29,081) | (28,388) | ||||||||
Net interest income | 12,400 | $ 17,700 | 54,300 | $ 59,300 | ||||||
Aggregate principal balance outstanding | 268,981 | 268,981 | 794,436 | |||||||
Fair value of loans invested in by the Company | 239,900 | 239,900 | 766,048 | |||||||
Fair Value, Measurements, Recurring | Loans Invested in by Company | Loans Held For Sale | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Net fair value adjustments | (21,948) | (25,039) | ||||||||
Aggregate principal balance outstanding | 202,749 | 202,749 | 747,394 | |||||||
Whole Loan Investors | Loans Invested in by Company | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Outstanding Principal Balance, Sales | 442,700 | |||||||||
Secured Borrowings | Loans Held for Investment | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Loans pledged as collateral | 2,800 | 2,800 | 18,000 | |||||||
Personal Loan and Auto Loan Warehouse Credit Facilities | Loans Held For Sale | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Loans pledged as collateral | 26,300 | 26,300 | 551,500 | |||||||
Consolidated VIEs | Loans Related to Consolidation of Securitization Trust | Loans Invested in by Company | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Loans held for investment and loans held for sale, fair value | 170,000 | 170,000 | 40,300 | |||||||
Consolidated VIEs | Loans Related to Consolidation of Securitization Trust | Payables to Securitization Holders | Loans Held for Investment | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Loans pledged as collateral | 170,000 | 170,000 | ||||||||
Payable to Securitization Note and Certificate Holders at Fair Value | Consolidated VIEs | Loans Related to Consolidation of Securitization Trust | Loans Held for Investment | ||||||||||
Loans, Notes and Certificates, and Loan Servicing Rights [Line Items] | ||||||||||
Payable to Structured Program note and certificate holders at fair value (1) | $ 173,400 | $ 173,400 | $ 40,600 | |||||||
|
Securitizations and Variable Interest Entities - Summary of Select Information Related to VIEs (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|
Variable Interest Entity [Line Items] | ||||
Restricted cash | [1] | $ 98,787 | $ 243,343 | |
Securities available for sale at fair value | 187,375 | 270,927 | ||
Loans held for investment at fair value | [1] | 708,274 | 1,079,315 | |
Loans held for investment by the Company at fair value | [1] | 59,099 | 43,693 | |
Loans held for sale by the Company at fair value | [1] | 180,801 | 722,355 | |
Accrued interest receivable | [1] | 6,865 | 12,857 | |
Other assets | [1] | 103,625 | 143,668 | |
Accrued interest payable | [1] | 5,829 | 9,260 | |
Accrued expenses and other liabilities | [1] | 100,916 | 142,636 | |
Notes, certificates and secured borrowings at fair value | [1] | 708,597 | 1,081,466 | |
Payable to Structured Program note and certificate holders at fair value | [1] | 173,410 | 40,610 | |
Credit facilities and securities sold under repurchase agreements | [1] | 120,159 | 587,453 | |
Liabilities | 1,245,565 | 2,082,154 | ||
Total | ||||
Variable Interest Entity [Line Items] | ||||
Restricted cash | 18,113 | 30,046 | ||
Securities available for sale at fair value | 167,721 | 220,135 | ||
Loans held for investment at fair value | 74,487 | 197,842 | ||
Loans held for investment by the Company at fair value | 57,756 | 40,251 | ||
Loans held for sale by the Company at fair value | 138,557 | 551,455 | ||
Accrued interest receivable | 1,860 | 5,308 | ||
Other assets | 38,564 | 53,457 | ||
Total assets | 497,058 | 1,098,494 | ||
Accrued interest payable | 1,008 | 3,185 | ||
Accrued expenses and other liabilities | 181 | 244 | ||
Notes, certificates and secured borrowings at fair value | 74,487 | 197,842 | ||
Payable to Structured Program note and certificate holders at fair value | 173,410 | 40,610 | ||
Credit facilities and securities sold under repurchase agreements | 18,500 | 387,251 | ||
Liabilities | 267,586 | 629,132 | ||
Total net assets | 229,472 | 469,362 | ||
Unconsolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Restricted cash | 0 | 0 | ||
Securities available for sale at fair value | 167,721 | 220,135 | ||
Loans held for investment at fair value | 0 | 0 | ||
Loans held for investment by the Company at fair value | 0 | 0 | ||
Loans held for sale by the Company at fair value | 0 | 0 | ||
Accrued interest receivable | 92 | 877 | ||
Other assets | 38,403 | 52,098 | ||
Total assets | 206,216 | 273,110 | ||
Accrued interest payable | 0 | 0 | ||
Accrued expenses and other liabilities | 0 | 0 | ||
Notes, certificates and secured borrowings at fair value | 0 | 0 | ||
Payable to Structured Program note and certificate holders at fair value | 0 | 0 | ||
Credit facilities and securities sold under repurchase agreements | 0 | 0 | ||
Liabilities | 0 | 0 | ||
Total net assets | 206,216 | 273,110 | ||
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Restricted cash | 18,113 | 30,046 | ||
Securities available for sale at fair value | 0 | 0 | ||
Loans held for investment at fair value | 74,487 | 197,842 | ||
Loans held for investment by the Company at fair value | 57,756 | 40,251 | ||
Loans held for sale by the Company at fair value | 138,557 | 551,455 | ||
Accrued interest receivable | 1,768 | 4,431 | ||
Other assets | 161 | 1,359 | ||
Total assets | 290,842 | 825,384 | ||
Accrued interest payable | 1,008 | 3,185 | ||
Accrued expenses and other liabilities | 181 | 244 | ||
Notes, certificates and secured borrowings at fair value | 74,487 | 197,842 | ||
Payable to Structured Program note and certificate holders at fair value | 173,410 | 40,610 | ||
Credit facilities and securities sold under repurchase agreements | 18,500 | 387,251 | ||
Liabilities | 267,586 | 629,132 | ||
Total net assets | $ 23,256 | $ 196,252 | ||
|
Securitizations and Variable Interest Entities - Summary of Financial Asset and Liability Involvement with Consolidated VIEs (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Assets | $ 1,979,457 | $ 2,982,341 |
Liabilities | (1,245,565) | (2,082,154) |
Consolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 290,842 | 825,384 |
Liabilities | (267,586) | (629,132) |
Net Assets | 23,256 | 196,252 |
LC Trust | Consolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 77,496 | 201,696 |
Liabilities | (75,166) | (199,520) |
Net Assets | 2,330 | 2,176 |
Consolidated trusts | Consolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 184,341 | 43,300 |
Liabilities | (173,726) | (40,687) |
Net Assets | 10,615 | 2,613 |
Warehouse Credit Facilities | Consolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 29,005 | 580,388 |
Liabilities | (18,694) | (388,925) |
Net Assets | $ 10,311 | $ 191,463 |
Securitizations and Variable Interest Entities - Unconsolidated VIEs with Significant Continuing Involvement (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Assets | $ 1,979,457 | $ 2,982,341 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 3,852,395 | 4,529,346 |
Net Assets | 206,216 | 273,110 |
Maximum Exposure to Loss | 206,216 | 273,110 |
Unconsolidated Trusts | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,502,665 | 1,909,219 |
Net Assets | 79,240 | 113,011 |
Maximum Exposure to Loss | 79,240 | 113,011 |
Certificate Program | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,315,354 | 2,585,957 |
Net Assets | 119,201 | 152,357 |
Maximum Exposure to Loss | 119,201 | 152,357 |
Investment Fund | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 34,376 | 34,170 |
Net Assets | 7,775 | 7,742 |
Maximum Exposure to Loss | 7,775 | 7,742 |
Securities Available for Sale | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 167,721 | 220,135 |
Maximum Exposure to Loss | 167,721 | 220,135 |
Securities Available for Sale | Unconsolidated Trusts | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 67,415 | 93,881 |
Maximum Exposure to Loss | 67,415 | 93,881 |
Securities Available for Sale | Certificate Program | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 100,306 | 126,254 |
Maximum Exposure to Loss | 100,306 | 126,254 |
Securities Available for Sale | Investment Fund | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Maximum Exposure to Loss | 0 | 0 |
Accrued Interest Receivable | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 92 | 877 |
Maximum Exposure to Loss | 92 | 877 |
Accrued Interest Receivable | Unconsolidated Trusts | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 51 | 362 |
Maximum Exposure to Loss | 51 | 362 |
Accrued Interest Receivable | Certificate Program | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 41 | 515 |
Maximum Exposure to Loss | 41 | 515 |
Accrued Interest Receivable | Investment Fund | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Maximum Exposure to Loss | 0 | 0 |
Other Assets | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 38,403 | 52,098 |
Maximum Exposure to Loss | 38,403 | 52,098 |
Other Assets | Unconsolidated Trusts | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 11,774 | 18,768 |
Maximum Exposure to Loss | 11,774 | 18,768 |
Other Assets | Certificate Program | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 18,854 | 25,588 |
Maximum Exposure to Loss | 18,854 | 25,588 |
Other Assets | Investment Fund | Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 7,775 | 7,742 |
Maximum Exposure to Loss | $ 7,775 | $ 7,742 |
Other Assets | ||
Variable Interest Entity [Line Items] | ||
Ownership (percent) | 23.00% | |
Other assets | $ 7,800 |
Securitizations and Variable Interest Entities - Summary of Personal Whole Loan Securitizations and Sales (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Unconsolidated Trusts | ||||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||||
Principal derecognized from loans securitized or sold (1) | $ 0 | $ 328,173 | $ 255,203 | $ 1,180,048 |
Net gains (losses) recognized from loans securitized or sold | 0 | 360 | (20) | 4,114 |
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement | 0 | 15,464 | 12,707 | 57,379 |
Cash proceeds from loans securitized or sold | 0 | 298,099 | 237,764 | 864,949 |
Cash proceeds from servicing and other administrative fees on loans securitized or sold | 4,176 | 4,545 | 14,118 | 12,324 |
Cash proceeds for interest received on senior securities and subordinated securities | 983 | 1,283 | 3,792 | 3,917 |
Unconsolidated Certificate Program Trusts | ||||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||||
Principal derecognized from loans securitized or sold (1) | 233,852 | 772,734 | 871,489 | 1,797,174 |
Net gains (losses) recognized from loans securitized or sold | 1,563 | 9,174 | 7,159 | 20,641 |
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement | 0 | 37,803 | 31,423 | 88,371 |
Cash proceeds from loans securitized or sold | 0 | 659,755 | 598,515 | 1,629,967 |
Cash proceeds from servicing and other administrative fees on loans securitized or sold | 6,697 | 4,802 | 20,919 | 11,396 |
Cash proceeds for interest received on senior securities and subordinated securities | $ 1,847 | 2,045 | 6,740 | 5,280 |
Structured Program Transactions | Senior securities | ||||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||||
Transferor's Interests Retained in Transferred Financial Assets, Fair Value | 21,800 | 23,000 | 60,000 | |
Structured Program Transactions | CLUB Certificate asset-backed securities | ||||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||||
Transferor's Interests Retained in Transferred Financial Assets, Fair Value | 27,100 | 18,300 | 77,700 | |
Structured Program Transactions | Subordinated securities | ||||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||||
Transferor's Interests Retained in Transferred Financial Assets, Fair Value | $ 4,300 | $ 2,900 | $ 8,100 |
Securitizations and Variable Interest Entities - Off-balance Sheet Loans Sold or Securitized (Details) - Off-balance Sheet Loans - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding principal balance | $ 3,800.0 | $ 4,400.0 |
Off-balance sheet loans, principal amount outstanding, 31 days or more past due | $ 102.7 | $ 145.6 |
Fair Value of Assets and Liabilities - Loans, Loan Servicing Rights, Related Notes and Certificates (Detail) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for investment | [1] | $ 708,274 | $ 1,079,315 | |
Loans held for investment by the Company | [1] | 59,099 | 43,693 | |
Loans held for sale by the Company | [1] | 180,801 | 722,355 | |
Securities available for sale at fair value | 187,375 | 270,927 | ||
Servicing assets | 59,538 | 89,680 | ||
Total assets | 1,195,087 | 2,205,970 | ||
Notes, certificates and secured borrowings | [1] | 708,597 | 1,081,466 | |
Payable to Structured Program note and certificate holders | [1] | 173,410 | 40,610 | |
Deferred revenue | 4,154 | |||
Loan trailing fee liability | 8,258 | 11,099 | ||
Total liabilities | 894,419 | 1,133,175 | ||
Asset-backed senior securities and subordinated securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 102,015 | 130,429 | ||
CLUB Certificate asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 65,706 | 89,706 | ||
Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 6,999 | 9,274 | ||
Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 6,651 | 14,343 | ||
Other asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 3,804 | 12,080 | ||
Certificates of deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 2,200 | 13,100 | ||
U.S. agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 1,995 | |||
Level 1 Inputs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for investment | 0 | 0 | ||
Loans held for investment by the Company | 0 | 0 | ||
Loans held for sale by the Company | 0 | 0 | ||
Securities available for sale at fair value | 0 | 0 | ||
Servicing assets | 0 | 0 | ||
Total assets | 0 | 0 | ||
Notes, certificates and secured borrowings | 0 | 0 | ||
Payable to Structured Program note and certificate holders | 0 | 0 | ||
Deferred revenue | 0 | |||
Loan trailing fee liability | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 1 Inputs | Asset-backed senior securities and subordinated securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 1 Inputs | CLUB Certificate asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 1 Inputs | Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 1 Inputs | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 1 Inputs | Other asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 1 Inputs | Certificates of deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 1 Inputs | U.S. agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | |||
Level 2 Inputs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for investment | 0 | 0 | ||
Loans held for investment by the Company | 0 | 0 | ||
Loans held for sale by the Company | 0 | 0 | ||
Securities available for sale at fair value | 103,674 | 160,131 | ||
Servicing assets | 0 | 0 | ||
Total assets | 103,674 | 160,131 | ||
Notes, certificates and secured borrowings | 0 | 0 | ||
Payable to Structured Program note and certificate holders | 0 | 0 | ||
Deferred revenue | 0 | |||
Loan trailing fee liability | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 2 Inputs | Asset-backed senior securities and subordinated securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 84,020 | 109,339 | ||
Level 2 Inputs | CLUB Certificate asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 2 Inputs | Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 6,999 | 9,274 | ||
Level 2 Inputs | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 6,651 | 14,343 | ||
Level 2 Inputs | Other asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 3,804 | 12,080 | ||
Level 2 Inputs | Certificates of deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 2,200 | 13,100 | ||
Level 2 Inputs | U.S. agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 1,995 | |||
Level 3 Inputs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for investment | 708,274 | 1,079,315 | ||
Loans held for investment by the Company | 59,099 | 43,693 | ||
Loans held for sale by the Company | 180,801 | 722,355 | ||
Securities available for sale at fair value | 83,701 | 110,796 | ||
Servicing assets | 59,538 | 89,680 | ||
Total assets | 1,091,413 | 2,045,839 | ||
Notes, certificates and secured borrowings | 708,597 | 1,081,466 | ||
Payable to Structured Program note and certificate holders | 173,410 | 40,610 | ||
Deferred revenue | 4,154 | |||
Loan trailing fee liability | 8,258 | 11,099 | ||
Total liabilities | 894,419 | 1,133,175 | ||
Level 3 Inputs | Asset-backed senior securities and subordinated securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 17,995 | 21,090 | ||
Level 3 Inputs | CLUB Certificate asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 65,706 | 89,706 | ||
Level 3 Inputs | Commercial paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 3 Inputs | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 3 Inputs | Other asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | 0 | 0 | ||
Level 3 Inputs | Certificates of deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | $ 0 | 0 | ||
Level 3 Inputs | U.S. agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale at fair value | $ 0 | |||
|
Fair Value of Assets and Liabilities - Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements (Detail) |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Weighted- Average | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | ||
Level 3 Inputs | Minimum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.66% | |
Level 3 Inputs | Maximum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.62% | 0.66% | |
Level 3 Inputs | Weighted- Average | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Total market servicing rates (percent per annum on outstanding principal balance) | 0.66% | ||
Measurement Input, Discount Rate | Level 3 Inputs | Minimum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 4.80% | 2.90% | |
Measurement Input, Discount Rate | Level 3 Inputs | Maximum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 16.40% | 14.80% | |
Measurement Input, Discount Rate | Level 3 Inputs | Weighted- Average | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 10.00% | 8.60% | |
Measurement Input, Discount Rate | Loan Trailing Fee Liability | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 4.80% | 2.90% | |
Measurement Input, Discount Rate | Loan Trailing Fee Liability | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 16.40% | 14.80% | |
Measurement Input, Discount Rate | Loan Trailing Fee Liability | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 10.60% | 9.30% | |
Measurement Input, Discount Rate | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 7.70% | 6.00% | |
Measurement Input, Discount Rate | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 15.10% | 12.00% | |
Measurement Input, Discount Rate | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 9.60% | 7.90% | |
Measurement Input, Loss Severity | Level 3 Inputs | Minimum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 4.50% | 3.70% | |
Measurement Input, Loss Severity | Level 3 Inputs | Maximum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 27.20% | 36.10% | |
Measurement Input, Loss Severity | Level 3 Inputs | Weighted- Average | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 12.80% | 12.40% | |
Measurement Input, Loss Severity | Loan Trailing Fee Liability | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 4.60% | 3.70% | |
Measurement Input, Loss Severity | Loan Trailing Fee Liability | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 27.20% | 36.00% | |
Measurement Input, Loss Severity | Loan Trailing Fee Liability | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 14.80% | 14.40% | |
Measurement Input, Loss Severity | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 4.30% | 3.60% | |
Measurement Input, Loss Severity | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 28.00% | 34.90% | |
Measurement Input, Loss Severity | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 11.70% | 11.90% | |
Measurement Input, Prepayment Rate | Level 3 Inputs | Minimum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 27.50% | 27.50% | |
Measurement Input, Prepayment Rate | Level 3 Inputs | Maximum | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 35.20% | 41.80% | |
Measurement Input, Prepayment Rate | Level 3 Inputs | Weighted- Average | Servicing Assets | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 31.30% | 32.50% | |
Measurement Input, Prepayment Rate | Loan Trailing Fee Liability | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 27.50% | 28.50% | |
Measurement Input, Prepayment Rate | Loan Trailing Fee Liability | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 38.90% | 41.70% | |
Measurement Input, Prepayment Rate | Loan Trailing Fee Liability | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 31.70% | 33.00% | |
Measurement Input, Prepayment Rate | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 27.60% | 28.70% | |
Measurement Input, Prepayment Rate | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 35.60% | 38.60% | |
Measurement Input, Prepayment Rate | Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 30.70% | 31.70% | |
Loans Invested in by Company | Measurement Input, Discount Rate | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 9.70% | 6.00% | |
Loans Invested in by Company | Measurement Input, Discount Rate | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 13.30% | 11.50% | |
Loans Invested in by Company | Measurement Input, Discount Rate | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 10.00% | 7.80% | |
Loans Invested in by Company | Measurement Input, Loss Severity | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 5.00% | 3.60% | |
Loans Invested in by Company | Measurement Input, Loss Severity | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 27.00% | 36.60% | |
Loans Invested in by Company | Measurement Input, Loss Severity | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 10.30% | 10.90% | |
Loans Invested in by Company | Measurement Input, Prepayment Rate | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 27.60% | 27.30% | |
Loans Invested in by Company | Measurement Input, Prepayment Rate | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 39.70% | 41.00% | |
Loans Invested in by Company | Measurement Input, Prepayment Rate | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 30.80% | 31.60% | |
Asset-backed Securities Related to Structured Program Transactions | Measurement Input, Discount Rate | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 2.20% | 3.40% | |
Asset-backed Securities Related to Structured Program Transactions | Measurement Input, Discount Rate | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 24.40% | 20.70% | |
Asset-backed Securities Related to Structured Program Transactions | Measurement Input, Discount Rate | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 8.40% | 8.80% | |
Asset-backed Securities Related to Structured Program Transactions | Measurement Input, Loss Severity | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 5.30% | 4.50% | |
Asset-backed Securities Related to Structured Program Transactions | Measurement Input, Loss Severity | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 29.80% | 37.90% | |
Asset-backed Securities Related to Structured Program Transactions | Measurement Input, Loss Severity | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 18.60% | 19.20% | |
Asset-backed Securities Related to Structured Program Transactions | Measurement Input, Prepayment Rate | Level 3 Inputs | Minimum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 6.30% | 17.30% | |
Asset-backed Securities Related to Structured Program Transactions | Measurement Input, Prepayment Rate | Level 3 Inputs | Maximum | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 31.00% | 35.10% | |
Asset-backed Securities Related to Structured Program Transactions | Measurement Input, Prepayment Rate | Level 3 Inputs | Weighted- Average | |||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | |||
Measurement input, percent | 25.30% | 29.40% |
Fair Value of Assets and Liabilities - Additional Information about Loans, Notes, Certificates and Secured Borrowings Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Notes and Certificates | |||||
Fair Value, Transfers | $ 0 | $ 0 | |||
Loans Held for Investment | |||||
Loans | |||||
Outstanding Principal Balance, Beginning | $ 851,476 | $ 1,605,257 | 1,148,888 | $ 2,013,438 | 2,013,438 |
Valuation Adjustment, Beginning | (66,248) | (92,273) | (69,573) | (130,187) | (130,187) |
Fair Value, Beginning | 785,228 | 1,512,984 | 1,079,315 | 1,883,251 | 1,883,251 |
Outstanding Principal Balance, Purchases | 77,389 | 162,402 | 237,283 | 522,248 | |
Valuation Adjustment, Purchases | 0 | 0 | 0 | (21) | |
Fair Value, Purchases | 77,389 | 162,402 | 237,283 | 522,227 | |
Outstanding Principal Balance, Transfers (to) from loans held for investment and/or loans held for sale | (324) | (122,515) | (17,903) | (122,967) | |
Valuation Adjustment, Transfers from loans to loans held for sale | 0 | 0 | 0 | 0 | |
Fair Value, Transfers from loans to loans held for sale | (324) | (122,515) | (17,903) | (122,967) | |
Outstanding Principal Balance, Issuance | 0 | 0 | 0 | 0 | |
Valuation Adjustment, Issuances | 0 | 0 | 0 | 0 | |
Fair Value, Issuances | 0 | 0 | 0 | 0 | |
Outstanding Principal Balance, Sales | 0 | 0 | 0 | 0 | |
Valuation Adjustment, Sales | 0 | 0 | 0 | 0 | |
Fair Value, Sales | 0 | 0 | 0 | 0 | |
Outstanding Principal Balance, Principal payments and retirements | (159,753) | (286,106) | (547,042) | (944,469) | |
Valuation Adjustment, Principal payments | 0 | 0 | 0 | 0 | |
Fair Value, Principal payments and retirements | (159,753) | (286,106) | (547,042) | (944,469) | |
Outstanding Principal Balance, Charge-offs | (12,218) | (42,433) | (64,656) | (151,645) | |
Charge-offs, net of recoveries | 2,049 | 29,029 | 33,562 | 110,705 | |
Fair Value, Charge-offs | (10,169) | (13,404) | (31,094) | (40,940) | |
Change in fair value recorded in earnings | 0 | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Valuation Adjustment, Gain (Loss) Included in Earnings | 15,903 | (15,882) | (12,285) | (59,623) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 15,903 | (15,882) | (12,285) | (59,623) | |
Outstanding Principal Balance, Ending | 756,570 | 1,316,605 | 756,570 | 1,316,605 | 1,148,888 |
Valuation Adjustment, Ending | (48,296) | (79,126) | (48,296) | (79,126) | (69,573) |
Fair Value, Ending | 708,274 | 1,237,479 | 708,274 | 1,237,479 | 1,079,315 |
Loans Held For Sale | |||||
Loans | |||||
Outstanding Principal Balance, Beginning | 0 | 0 | 0 | 0 | 0 |
Valuation Adjustment, Beginning | 0 | 0 | 0 | 0 | 0 |
Fair Value, Beginning | 0 | 0 | 0 | 0 | 0 |
Outstanding Principal Balance, Purchases | 492,440 | 697,833 | 1,015,028 | 1,812,984 | |
Valuation Adjustment, Purchases | (24,533) | (9,080) | (27,456) | (9,548) | |
Fair Value, Purchases | 467,907 | 688,753 | 987,572 | 1,803,436 | |
Outstanding Principal Balance, Transfers (to) from loans held for investment and/or loans held for sale | 0 | 122,330 | 17,413 | 122,330 | |
Valuation Adjustment, Transfers from loans to loans held for sale | 0 | 0 | 0 | 0 | |
Fair Value, Transfers from loans to loans held for sale | 0 | 122,330 | 17,413 | 122,330 | |
Outstanding Principal Balance, Issuance | 0 | 0 | 0 | 0 | |
Valuation Adjustment, Issuances | 0 | 0 | 0 | 0 | |
Fair Value, Issuances | 0 | 0 | 0 | 0 | |
Outstanding Principal Balance, Sales | (492,440) | (820,163) | (1,032,441) | (1,935,314) | |
Valuation Adjustment, Sales | 29,902 | 8,814 | 33,365 | 8,034 | |
Fair Value, Sales | (462,538) | (811,349) | (999,076) | (1,927,280) | |
Outstanding Principal Balance, Principal payments and retirements | 0 | 0 | 0 | 0 | |
Valuation Adjustment, Principal payments | 0 | 0 | 0 | 0 | |
Fair Value, Principal payments and retirements | 0 | 0 | 0 | 0 | |
Outstanding Principal Balance, Charge-offs | 0 | 0 | 0 | 0 | |
Charge-offs, net of recoveries | 0 | 0 | 0 | 0 | |
Fair Value, Charge-offs | 0 | 0 | 0 | 0 | |
Change in fair value recorded in earnings | 0 | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Valuation Adjustment, Gain (Loss) Included in Earnings | (5,369) | 266 | (5,909) | 1,514 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (5,369) | 266 | (5,909) | 1,514 | |
Outstanding Principal Balance, Ending | 0 | 0 | 0 | 0 | 0 |
Valuation Adjustment, Ending | 0 | 0 | 0 | 0 | 0 |
Fair Value, Ending | 0 | 0 | 0 | 0 | 0 |
Loans Invested in by Company | |||||
Loans | |||||
Outstanding Principal Balance, Beginning | 743,421 | 464,337 | 794,436 | 873,233 | 873,233 |
Valuation Adjustment, Beginning | (90,771) | (24,227) | (28,388) | (30,629) | (30,629) |
Fair Value, Beginning | 652,650 | 440,110 | 766,048 | 842,604 | 842,604 |
Outstanding Principal Balance, Purchases | 27,957 | 1,532,707 | 1,431,527 | 3,566,428 | |
Valuation Adjustment, Purchases | (195) | (632) | (1,200) | (1,626) | |
Fair Value, Purchases | 27,762 | 1,532,075 | 1,430,327 | 3,564,802 | |
Outstanding Principal Balance, Transfers (to) from loans held for investment and/or loans held for sale | 324 | 185 | 490 | 637 | |
Valuation Adjustment, Transfers from loans to loans held for sale | 0 | 0 | 0 | 0 | |
Fair Value, Transfers from loans to loans held for sale | 324 | 185 | 490 | 637 | |
Outstanding Principal Balance, Sales | (442,744) | (1,181,739) | (1,726,678) | (3,477,485) | |
Valuation Adjustment, Sales | 51,220 | 24,093 | 82,076 | 86,387 | |
Fair Value, Sales | (391,524) | (1,157,646) | (1,644,602) | (3,391,098) | |
Outstanding Principal Balance, Principal payments and retirements | (52,644) | (66,654) | (207,968) | (199,987) | |
Valuation Adjustment, Principal payments | 0 | 0 | 0 | 0 | |
Fair Value, Principal payments and retirements | (52,644) | (66,654) | (207,968) | (199,987) | |
Outstanding Principal Balance, Charge-offs | (7,333) | (7,889) | (22,826) | (21,879) | |
Charge-offs, net of recoveries | 6,393 | 6,619 | 18,701 | 19,429 | |
Fair Value, Charge-offs | (940) | (1,270) | (4,125) | (2,450) | |
Change in fair value recorded in earnings | 0 | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Valuation Adjustment, Gain (Loss) Included in Earnings | 4,272 | (32,419) | (100,270) | (100,127) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 4,272 | (32,419) | (100,270) | (100,127) | |
Outstanding Principal Balance, Ending | 268,981 | 740,947 | 268,981 | 740,947 | 794,436 |
Valuation Adjustment, Ending | (29,081) | (26,566) | (29,081) | (26,566) | (28,388) |
Fair Value, Ending | 239,900 | 714,381 | 239,900 | 714,381 | 766,048 |
Loans Invested in by Company | Loans Held for Investment | |||||
Loans | |||||
Outstanding Principal Balance, Beginning | 75,159 | 6,550 | 47,042 | 3,518 | 3,518 |
Valuation Adjustment, Beginning | (9,602) | (1,523) | (3,349) | (935) | (935) |
Fair Value, Beginning | 65,557 | 5,027 | 43,693 | 2,583 | 2,583 |
Outstanding Principal Balance, Purchases | 201 | 791 | 1,314 | 1,961 | |
Valuation Adjustment, Purchases | (189) | (632) | (1,194) | (1,626) | |
Fair Value, Purchases | 12 | 159 | 120 | 335 | |
Outstanding Principal Balance, Transfers (to) from loans held for investment and/or loans held for sale | (155) | 304 | 43,170 | 5,254 | |
Valuation Adjustment, Transfers from loans to loans held for sale | 0 | 0 | 0 | (1,471) | |
Fair Value, Transfers from loans to loans held for sale | (155) | 304 | 43,170 | 3,783 | |
Outstanding Principal Balance, Sales | 0 | 0 | 0 | 0 | |
Valuation Adjustment, Sales | 0 | 0 | 0 | 0 | |
Fair Value, Sales | 0 | 0 | 0 | 0 | |
Outstanding Principal Balance, Principal payments and retirements | (8,205) | (840) | (21,838) | (2,295) | |
Valuation Adjustment, Principal payments | 0 | 0 | 0 | 0 | |
Fair Value, Principal payments and retirements | (8,205) | (840) | (21,838) | (2,295) | |
Outstanding Principal Balance, Charge-offs | (768) | (1,209) | (3,456) | (2,842) | |
Charge-offs, net of recoveries | 245 | 697 | 756 | 1,544 | |
Fair Value, Charge-offs | (523) | (512) | (2,700) | (1,298) | |
Change in fair value recorded in earnings | 0 | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Valuation Adjustment, Gain (Loss) Included in Earnings | 2,413 | 73 | (3,346) | 1,103 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 2,413 | 73 | (3,346) | 1,103 | |
Outstanding Principal Balance, Ending | 66,232 | 5,596 | 66,232 | 5,596 | 47,042 |
Valuation Adjustment, Ending | (7,133) | (1,385) | (7,133) | (1,385) | (3,349) |
Fair Value, Ending | 59,099 | 4,211 | 59,099 | 4,211 | 43,693 |
Loans Invested in by Company | Loans Held For Sale | |||||
Loans | |||||
Outstanding Principal Balance, Beginning | 668,262 | 457,787 | 747,394 | 869,715 | 869,715 |
Valuation Adjustment, Beginning | (81,169) | (22,704) | (25,039) | (29,694) | (29,694) |
Fair Value, Beginning | 587,093 | 435,083 | 722,355 | 840,021 | 840,021 |
Outstanding Principal Balance, Purchases | 27,756 | 1,531,916 | 1,430,213 | 3,564,467 | |
Valuation Adjustment, Purchases | (6) | 0 | (6) | 0 | |
Fair Value, Purchases | 27,750 | 1,531,916 | 1,430,207 | 3,564,467 | |
Outstanding Principal Balance, Transfers (to) from loans held for investment and/or loans held for sale | 479 | (119) | (42,680) | (4,617) | |
Valuation Adjustment, Transfers from loans to loans held for sale | 0 | 0 | 0 | 1,471 | |
Fair Value, Transfers from loans to loans held for sale | 479 | (119) | (42,680) | (3,146) | |
Outstanding Principal Balance, Sales | (442,744) | (1,181,739) | (1,726,678) | (3,477,485) | |
Valuation Adjustment, Sales | 51,220 | 24,093 | 82,076 | 86,387 | |
Fair Value, Sales | (391,524) | (1,157,646) | (1,644,602) | (3,391,098) | |
Outstanding Principal Balance, Principal payments and retirements | (44,439) | (65,814) | (186,130) | (197,692) | |
Valuation Adjustment, Principal payments | 0 | 0 | 0 | ||
Fair Value, Principal payments and retirements | (44,439) | (65,814) | (186,130) | (197,692) | |
Outstanding Principal Balance, Charge-offs | (6,565) | (6,680) | (19,370) | (19,037) | |
Charge-offs, net of recoveries | 6,148 | 5,922 | 17,945 | 17,885 | |
Fair Value, Charge-offs | (417) | (758) | (1,425) | (1,152) | |
Change in fair value recorded in earnings | 0 | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Valuation Adjustment, Gain (Loss) Included in Earnings | 1,859 | (32,492) | (96,924) | (101,230) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 1,859 | (32,492) | (96,924) | (101,230) | |
Outstanding Principal Balance, Ending | 202,749 | 735,351 | 202,749 | 735,351 | 747,394 |
Valuation Adjustment, Ending | (21,948) | (25,181) | (21,948) | (25,181) | (25,039) |
Fair Value, Ending | 180,801 | 710,170 | 180,801 | 710,170 | 722,355 |
Notes, Certificates and Secured Borrowings | |||||
Notes and Certificates | |||||
Outstanding Principal Balance, Beginning | 851,476 | 1,605,257 | 1,148,888 | 2,033,258 | 2,033,258 |
Valuation Adjustment, Beginning | (65,548) | (87,306) | (67,422) | (127,383) | (127,383) |
Fair value at beginning of period | 785,928 | 1,517,951 | 1,081,466 | 1,905,875 | 1,905,875 |
Outstanding Principal Balance, Purchases | 0 | 0 | 0 | 0 | |
Valuation Adjustment, Purchases | 0 | 0 | 0 | 0 | |
Fair Value, Purchases | 0 | 0 | 0 | 0 | |
Outstanding Principal Balance, Beginning, Transfers | 0 | 0 | 0 | 0 | |
Valuation Adjustment, Transfers | 0 | 0 | 0 | 0 | |
Fair Value, Transfers | 0 | 0 | 0 | 0 | |
Outstanding Principal Balance, Issuances | 77,389 | 162,402 | 237,283 | 522,248 | |
Valuation Adjustment, Issuances | 0 | 0 | 0 | 0 | |
Fair Value, Issuances | 77,389 | 162,402 | 237,283 | 522,248 | |
Outstanding Principal Balance, Sales | 0 | 0 | 0 | 0 | |
Valuation Adjustment, Sales | 0 | 0 | 0 | 0 | |
Fair Value, Sales | 0 | 0 | 0 | 0 | |
Outstanding Principal Balance, Principal payments and retirements | (160,077) | (408,621) | (564,945) | (1,087,256) | |
Valuation Adjustment, Principal payments and retirements | 0 | 0 | 0 | 14 | |
Fair Value, Principal payments and retirements | (160,077) | (408,621) | (564,945) | (1,087,242) | |
Outstanding Principal Balance, Charge-offs | (12,218) | (42,433) | (64,656) | (151,645) | |
Valuation Adjustment, Charge-offs | 1,358 | 27,347 | 31,345 | 109,012 | |
Fair Value, Charge-offs | (10,860) | (15,086) | (33,311) | (42,633) | |
Outstanding Principal Balance, Change in fair value recorded in earnings | 0 | 0 | 0 | 0 | |
Valuation Adjustment, Change in fair value recorded in earnings | 16,217 | (15,688) | (11,896) | (57,290) | |
Fair Value, Change in fair value recorded in earnings | 16,217 | (15,688) | (11,896) | (57,290) | |
Outstanding Principal Balance, Ending | 756,570 | 1,316,605 | 756,570 | 1,316,605 | 1,148,888 |
Valuation Adjustment, Ending | (47,973) | (75,647) | (47,973) | (75,647) | (67,422) |
Fair value at end of period | $ 708,597 | $ 1,240,958 | $ 708,597 | $ 1,240,958 | $ 1,081,466 |
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Servicing Assets, Changes in fair value due to: | ||||
Fair value at beginning of period | $ 89,680 | |||
Fair value at end of period | $ 59,538 | 59,538 | ||
Fair Value, Measurements, Recurring | ||||
Servicing Assets, Changes in fair value due to: | ||||
Fair value at beginning of period | 65,515 | $ 78,714 | 89,680 | $ 64,006 |
Issuances | 7,783 | 21,042 | 27,119 | 55,588 |
Changes in fair value, included in servicing fees | (13,376) | (16,849) | (48,046) | (39,954) |
Other net changes included in deferred revenue | (384) | 343 | (9,215) | 3,610 |
Fair value at end of period | 59,538 | 83,250 | 59,538 | 83,250 |
Asset-backed subordinated securities related to Company-sponsored Structured Program transactions | ||||
Servicing Liabilities, Changes in fair value due to: | ||||
Fair value at beginning of period | 95,590 | 95,821 | 110,796 | 60,279 |
Additions | 446 | 31,597 | 26,458 | 85,944 |
Redemptions | (426) | (8,861) | (802) | (8,861) |
Transfers out of Level 3 | (517) | 0 | (517) | 0 |
Cash received | (20,297) | (13,385) | (54,371) | (31,791) |
Change in unrealized gain (loss) | 3,413 | (768) | 288 | 140 |
Accrued interest | 1,823 | 0 | 5,649 | 0 |
Provision for credit loss expense | 3,669 | 0 | (3,800) | 0 |
Other-than-temporary impairment | 0 | (1,175) | 0 | (2,482) |
Fair value at end of period | $ 83,701 | $ 103,229 | $ 83,701 | $ 103,229 |
Fair Value of Assets and Liabilities - Sensitivity of Fair Value of Loans Invested in by the Company, Asset-backed Securities Related to Structured Program Transactions and Servicing Assets (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale at fair value | $ 187,375 | $ 270,927 | ||||
Servicing assets | 59,538 | 89,680 | ||||
Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | 59,538 | 89,680 | $ 65,515 | $ 83,250 | $ 78,714 | $ 64,006 |
Level 3 Inputs | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale at fair value | 83,701 | 110,796 | ||||
Servicing assets | 59,538 | 89,680 | ||||
Level 3 Inputs | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Servicing assets | 59,538 | 89,680 | ||||
Asset-backed Securities Related to Structured Program Transactions, Senior Securities | Level 3 Inputs | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale at fair value | 84,019 | 109,339 | ||||
Discount rates, impact of 100 basis point increase | (729) | (1,050) | ||||
Discount rates, impact of 200 basis point increase | (1,437) | (2,076) | ||||
Expected credit loss on rates on underlying loans, 10% adverse change | 0 | 0 | ||||
Expected credit loss on rates on underlying loans, 20% adverse change | 0 | 0 | ||||
Expected prepayment rates, 10% adverse change | 0 | 0 | ||||
Expected prepayment rates, 20% adverse change | 0 | $ 0 | ||||
Asset-backed Securities Related to Structured Program Transactions, Senior Securities | Level 3 Inputs | Measurement Input, Expected Term | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Expected weighted-average life (in years) | 1 year 1 month 6 days | |||||
Asset-backed Securities Related to Structured Program Transactions, Subordinated Securities | Level 3 Inputs | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale at fair value | 17,996 | $ 21,090 | ||||
Discount rates, impact of 100 basis point increase | (179) | (300) | ||||
Discount rates, impact of 200 basis point increase | (385) | (513) | ||||
Expected credit loss on rates on underlying loans, 10% adverse change | (1,958) | (2,162) | ||||
Expected credit loss on rates on underlying loans, 20% adverse change | (3,968) | (4,273) | ||||
Expected prepayment rates, 10% adverse change | (776) | (814) | ||||
Expected prepayment rates, 20% adverse change | (1,612) | $ (1,495) | ||||
Asset-backed Securities Related to Structured Program Transactions, Subordinated Securities | Level 3 Inputs | Measurement Input, Expected Term | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Expected weighted-average life (in years) | 1 year 4 months 24 days | |||||
Asset-backed Securities Related to Structured Program Transactions, CLUB Transactions [Member] | Level 3 Inputs | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale at fair value | 65,706 | $ 89,706 | ||||
Discount rates, impact of 100 basis point increase | (550) | (823) | ||||
Discount rates, impact of 200 basis point increase | (1,088) | (1,627) | ||||
Expected credit loss on rates on underlying loans, 10% adverse change | (2,004) | (2,163) | ||||
Expected credit loss on rates on underlying loans, 20% adverse change | (4,035) | (4,311) | ||||
Expected prepayment rates, 10% adverse change | (792) | (654) | ||||
Expected prepayment rates, 20% adverse change | $ (1,597) | $ (1,279) | ||||
Asset-backed Securities Related to Structured Program Transactions, CLUB Transactions [Member] | Level 3 Inputs | Measurement Input, Expected Term | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Expected weighted-average life (in years) | 1 year | 1 year 1 month 6 days | ||||
Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted-average estimated life of contractual repurchase agreements | 10 months 24 days | |||||
Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted-average estimated life of contractual repurchase agreements | 1 year 6 months | |||||
Loans Invested in by Company | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans and loans held for sale | $ 239,900 | $ 766,048 | ||||
Discount rates, impact of 100 basis point increase | (2,564) | (9,806) | ||||
Discount rates, impact of 200 basis point increase | (5,083) | (19,410) | ||||
Expected credit loss rates on underlying loans, 10% adverse change | (2,938) | (9,558) | ||||
Expected credit loss rates on underlying loans, 20% adverse change | (5,937) | (19,136) | ||||
Expected prepayment rates, 10% adverse change | (694) | (2,429) | ||||
Expected prepayment rates, 20% adverse change | $ (1,401) | $ (4,740) | ||||
Loans Invested in by Company | Measurement Input, Expected Term | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Expected weighted-average life (in years) | 1 year 2 months 12 days | 1 year 6 months | ||||
Loans Invested in by Company | Minimum | Level 3 Inputs | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 9.70% | 6.00% | ||||
Loans Invested in by Company | Minimum | Level 3 Inputs | Measurement Input, Loss Severity | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 5.00% | 3.60% | ||||
Loans Invested in by Company | Minimum | Level 3 Inputs | Measurement Input, Prepayment Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 27.60% | 27.30% | ||||
Loans Invested in by Company | Maximum | Level 3 Inputs | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 13.30% | 11.50% | ||||
Loans Invested in by Company | Maximum | Level 3 Inputs | Measurement Input, Loss Severity | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 27.00% | 36.60% | ||||
Loans Invested in by Company | Maximum | Level 3 Inputs | Measurement Input, Prepayment Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 39.70% | 41.00% | ||||
Servicing Assets | Level 3 Inputs | Fair Value, Measurements, Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount rates, impact of 100 basis point increase | $ (481) | $ (680) | ||||
Discount rates, impact of 200 basis point increase | (962) | (1,360) | ||||
Expected credit loss on rates on underlying loans, 10% adverse change | (285) | (582) | ||||
Expected credit loss on rates on underlying loans, 20% adverse change | (570) | (1,165) | ||||
Expected prepayment rates, 10% adverse change | (2,246) | (2,962) | ||||
Expected prepayment rates, 20% adverse change | $ (4,492) | $ (5,924) | ||||
Servicing Assets | Minimum | Level 3 Inputs | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 4.80% | 2.90% | ||||
Servicing Assets | Minimum | Level 3 Inputs | Measurement Input, Loss Severity | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 4.50% | 3.70% | ||||
Servicing Assets | Minimum | Level 3 Inputs | Measurement Input, Prepayment Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 27.50% | 27.50% | ||||
Servicing Assets | Maximum | Level 3 Inputs | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 16.40% | 14.80% | ||||
Servicing Assets | Maximum | Level 3 Inputs | Measurement Input, Loss Severity | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 27.20% | 36.10% | ||||
Servicing Assets | Maximum | Level 3 Inputs | Measurement Input, Prepayment Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input, percent | 35.20% | 41.80% |
Fair Value of Assets and Liabilities - Additional Information about Servicing Assets and Liabilities Measured Using Different Market Servicing Rates and Different Prepayment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset transfers, net | $ 0 | $ 0 | |||
Liability transfers, net | $ 0 | $ 0 | |||
Change in rate | 0.10% | 0.10% | 0.10% | ||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Weighted-average market servicing rate assumptions, servicing assets | 0.62% | 0.66% | |||
Assets, servicing rate increase by .1% | $ (7,993) | $ (7,993) | $ (13,978) | ||
Assets, servicing rate decrease by .1% | 7,994 | 7,994 | $ 13,979 | ||
Asset-backed subordinated securities related to Company-sponsored Structured Program transactions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers out of Level 3 | $ (517) | $ 0 | $ (517) | $ 0 |
Fair Value of Assets and Liabilities - Trailing Fee Liability (Details) - Loan Trailing Fee Liability - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | $ 9,213 | $ 10,224 | $ 11,099 | $ 10,010 |
Issuances | 356 | 2,152 | 2,322 | 5,552 |
Cash payment of Loan Trailing Fee | (1,829) | (2,015) | (5,726) | (5,920) |
Change in fair value, included in Origination and Servicing | 518 | 222 | 563 | 941 |
Fair value at end of period | $ 8,258 | $ 10,583 | $ 8,258 | $ 10,583 |
Fair Value of Assets and Liabilities - Not Measured at Fair Value (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 1,195,087 | $ 2,205,970 |
Total liabilities | 894,419 | 1,133,175 |
Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 103,674 | 160,131 |
Total liabilities | 0 | 0 |
Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,091,413 | 2,045,839 |
Total liabilities | 894,419 | 1,133,175 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 445,180 | 243,779 |
Restricted cash (1) | 98,787 | 243,343 |
Servicer reserve receivable | 30 | 73 |
Deposits | 892 | 953 |
Total assets | 544,889 | 488,148 |
Accrued expenses and other liabilities | 15,552 | 24,899 |
Accounts payable | 3,382 | 10,855 |
Payables to investors | 35,068 | 97,530 |
Credit facilities and securities sold under repurchase agreements | 120,159 | 587,453 |
Total liabilities | 174,161 | 720,737 |
Portion Not Recorded at Fair Value | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash (1) | 0 | 0 |
Servicer reserve receivable | 0 | 0 |
Deposits | 0 | 0 |
Total assets | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Accounts payable | 0 | 0 |
Payables to investors | 0 | 0 |
Credit facilities and securities sold under repurchase agreements | 0 | 0 |
Total liabilities | 0 | 0 |
Portion Not Recorded at Fair Value | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 445,180 | 243,779 |
Restricted cash (1) | 98,787 | 243,343 |
Servicer reserve receivable | 30 | 73 |
Deposits | 892 | 953 |
Total assets | 544,889 | 488,148 |
Accrued expenses and other liabilities | 0 | 0 |
Accounts payable | 3,382 | 10,855 |
Payables to investors | 35,068 | 97,530 |
Credit facilities and securities sold under repurchase agreements | 54,954 | 77,143 |
Total liabilities | 93,404 | 185,528 |
Portion Not Recorded at Fair Value | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash (1) | 0 | 0 |
Servicer reserve receivable | 0 | 0 |
Deposits | 0 | 0 |
Total assets | 0 | 0 |
Accrued expenses and other liabilities | 15,552 | 24,899 |
Accounts payable | 0 | 0 |
Payables to investors | 0 | 0 |
Credit facilities and securities sold under repurchase agreements | 65,205 | 510,310 |
Total liabilities | 80,757 | 535,209 |
Balance at Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 445,180 | 243,779 |
Restricted cash (1) | 98,787 | 243,343 |
Servicer reserve receivable | 30 | 73 |
Deposits | 892 | 953 |
Total assets | 544,889 | 488,148 |
Accrued expenses and other liabilities | 15,552 | 24,899 |
Accounts payable | 3,382 | 10,855 |
Payables to investors | 35,068 | 97,530 |
Credit facilities and securities sold under repurchase agreements | 120,159 | 587,453 |
Total liabilities | $ 174,161 | $ 720,737 |
Property, Equipment and Software, Net (Detail) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Internally developed software | $ 116,378 | $ 117,510 |
Leasehold improvements | 35,053 | 39,315 |
Computer equipment | 27,034 | 26,669 |
Purchased software | 17,926 | 11,846 |
Furniture and fixtures | 8,203 | 9,406 |
Construction in progress | 3,084 | 4,937 |
Total property, equipment and software | 207,678 | 209,683 |
Accumulated depreciation and amortization | (106,633) | (95,313) |
Total property, equipment and software, net | 101,045 | 114,370 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Internally developed software | $ 14,500 | $ 21,300 |
Property, Equipment and Software, Net - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 41,832 | $ 44,034 | ||
Property, Equipment and Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 11,400 | $ 12,800 | 34,800 | 38,800 |
Leasehold Improvements and Furniture and Fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment expense | 400 | 0 | 1,900 | 0 |
Internally Developed Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment expense | $ 200 | $ 200 | $ 4,700 | $ 2,500 |
Other Assets (Detail) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|
Other Assets [Abstract] | ||||
Other assets | [1] | $ 103,625 | $ 143,668 | |
Loan servicing assets, at fair value | ||||
Other Assets [Abstract] | ||||
Other assets | 59,538 | 89,680 | ||
Accounts receivable | ||||
Other Assets [Abstract] | ||||
Other assets | 11,359 | 19,017 | ||
Prepaid expenses | ||||
Other Assets [Abstract] | ||||
Other assets | 11,893 | 14,862 | ||
Other investments | ||||
Other Assets [Abstract] | ||||
Other assets | 8,275 | 8,242 | ||
Deferred financing costs | ||||
Other Assets [Abstract] | ||||
Other assets | 87 | 1,484 | ||
Other | ||||
Other Assets [Abstract] | ||||
Other assets | 12,473 | 10,383 | ||
Loan Servicing Rights | ||||
Other Assets [Abstract] | ||||
Principal balance of underlying loan servicing rights | $ 11,200,000 | $ 14,100,000 | ||
|
Intangible Assets - Additional Information (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Intangible assets, net | $ 12,180,000 | $ 12,180,000 | $ 14,549,000 | ||
Amortization expense | 800,000 | $ 800,000 | 2,400,000 | $ 2,700,000 | |
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|
Payables and Accruals [Abstract] | ||||
Transaction fee refund reserve | $ 16,207 | $ 25,541 | ||
Contingent liabilities | 22,342 | 16,000 | ||
Accrued expenses | 12,873 | 36,797 | ||
Accrued compensation | 22,629 | 30,484 | ||
Loan trailing fee liability, at fair value | 8,258 | 11,099 | ||
Deferred revenue | 4,313 | 13,688 | ||
Other | 14,294 | 9,027 | ||
Total accrued expenses and other liabilities | [1] | $ 100,916 | $ 142,636 | |
|
Debt (Details) |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
credit_facility
|
Sep. 30, 2020
USD ($)
credit_facility
|
Sep. 30, 2019
USD ($)
|
Mar. 31, 2021 |
Nov. 16, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2015
USD ($)
|
|||
Debt Instrument [Line Items] | |||||||||
Number of warehouse credit facilities | credit_facility | 2 | 2 | |||||||
Warehouse facility repaid and terminated | $ 1,572,569,000 | $ 1,801,600,000 | |||||||
Payable to Structured Program note and certificate holders | [1] | $ 173,410,000 | 173,410,000 | $ 40,610,000 | |||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding under credit facility | 0 | $ 0 | 60,000,000.0 | ||||||
Maximum borrowing capacity | $ 120,000,000.0 | ||||||||
Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted-average estimated life of contractual repurchase agreements | 10 months 24 days | ||||||||
Minimum | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused commitment fee (percent) | 0.25% | ||||||||
Minimum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 1.75% | ||||||||
Minimum | Revolving Credit Facility | Federal Funds Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 0.50% | ||||||||
Minimum | Revolving Credit Facility | Eurocurrency Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 1.00% | ||||||||
Minimum | Revolving Credit Facility | Adjusted Eurocurrency Rate Plus 1% | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 0.75% | ||||||||
Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted-average estimated life of contractual repurchase agreements | 1 year 6 months | ||||||||
Maximum | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused commitment fee (percent) | 0.375% | ||||||||
Maximum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 2.00% | ||||||||
Maximum | Revolving Credit Facility | Adjusted Eurocurrency Rate Plus 1% | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 1.00% | ||||||||
Personal Loan Warehouse Credit Facility, Commitment Termination Date of October 2020 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Warehouse facility repaid and terminated | 250,000,000.0 | ||||||||
Personal Loan and Auto Loan Warehouse Credit Facilities | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding under credit facility | 18,500,000 | $ 18,500,000 | 387,300,000 | ||||||
Restricted cash | $ 2,200,000 | $ 2,200,000 | 25,100,000 | ||||||
Personal Loan and Auto Loan Warehouse Credit Facilities | Minimum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 1.75% | ||||||||
Personal Loan and Auto Loan Warehouse Credit Facilities | Maximum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 2.10% | ||||||||
Personal Loan Warehouse Credit Facilities | Minimum | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused commitment fee (percent) | 0.375% | ||||||||
Personal Loan Warehouse Credit Facilities | Maximum | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused commitment fee (percent) | 0.875% | ||||||||
Personal Loan Warehouse Credit Facilities with Associated Commitment Termination Date of December 2020 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, loan aging limit | 210 days | ||||||||
Credit facility, reduction in advance rate after loan aging limit is met (percent) | 50.00% | 50.00% | |||||||
Debt outstanding under credit facility | $ 18,500,000 | $ 18,500,000 | |||||||
Maximum borrowing capacity | 100,000,000.0 | 100,000,000.0 | |||||||
Payables to Securitization Holders | |||||||||
Debt Instrument [Line Items] | |||||||||
Restricted cash | 13,500,000 | $ 13,500,000 | 2,900,000 | ||||||
Securities Sold under Agreements to Repurchase | Minimum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 0.65% | ||||||||
Securities Sold under Agreements to Repurchase | Maximum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings interest rate spread (percent) | 2.50% | ||||||||
Loans Held For Sale | Personal Loan and Auto Loan Warehouse Credit Facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans pledged as collateral | 26,300,000 | $ 26,300,000 | 551,500,000 | ||||||
Loans Held for Investment and Loans Held for Sale | Payables to Securitization Holders | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans pledged as collateral | 40,300,000 | ||||||||
Credit Facilities and Securities Sold under Repurchase Agreements | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate debt outstanding under repurchase transactions | 101,700,000 | 101,700,000 | 140,200,000 | ||||||
Credit Facilities and Securities Sold under Repurchase Agreements | Contractual Repurchase Dates Ranging from May 2020 to December 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate debt outstanding under repurchase transactions | 39,000,000.0 | 39,000,000.0 | |||||||
Credit Facilities and Securities Sold under Repurchase Agreements | Contractual Repurchase Date in May 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate debt outstanding under repurchase transactions | 62,700,000 | 62,700,000 | |||||||
Personal Whole Loan Securitization | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal derecognized from loans securitized or sold | 244,400,000 | 244,400,000 | |||||||
Assets Sold under Repurchase Agreements | |||||||||
Debt Instrument [Line Items] | |||||||||
Underlying assets pledged as collateral | 127,400,000 | 127,400,000 | 174,800,000 | ||||||
Third-party Investor | Personal Whole Loan Securitization | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from the sale of certificate participations and securities sold to third-party investors | 228,700,000 | 228,700,000 | |||||||
Consolidated VIEs | Loans Related to Consolidation of Securitization Trust | Loans Held for Investment | Payables to Securitization Holders | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans pledged as collateral | 170,000,000.0 | 170,000,000.0 | |||||||
Consolidated VIEs | Loans Related to Consolidation of Securitization Trust | Payable to Securitization Note and Certificate Holders at Fair Value | Loans Held for Investment | |||||||||
Debt Instrument [Line Items] | |||||||||
Payable to Structured Program note and certificate holders | $ 173,400,000 | $ 173,400,000 | $ 40,600,000 | ||||||
Forecast | Personal Loan Warehouse Credit Facilities with Associated Commitment Termination Date of December 2020 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 50,000,000.0 | ||||||||
Credit facility, maximum advance rate against borrowing base, step down (percent) | 50.00% | ||||||||
|
Stockholders' Equity - Additional Information (Detail) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 20, 2020 |
Feb. 29, 2020 |
Mar. 31, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Class of Stock [Line Items] | ||||||
Preferred stock, authorized (shares) | 10,000,000 | |||||
Preferred stock, par value ($ per share) | $ 0.01 | |||||
Permissible transfer, maximum receipt of any class of voting securities (percent) | 2.00% | |||||
Permissible transfer, maximum control of transferee of Company voting securities, prior to transfer (percent) | 50.00% | |||||
One-time cash payment | $ 50,200,000 | $ 50,200,000 | ||||
Shareholder Protection Agreement threshold of equity interest in the Company triggering dilution (percent) | 25.00% | |||||
Shareholder Protection Agreement threshold of ownership in any class of the Company's voting securities triggering dilution (percent) | 10.00% | |||||
Shareholder Protection Agreement, maximum term of agreement | 18 months | |||||
Shareholder Protection Agreement percent of Series B Preferred Stock included in a Unit (percent) | 0.10% | |||||
Series B Preferred stock unit ($ per unit) | $ 48.00 | |||||
Retirement of treasury stock | $ 19,600,000 | |||||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, authorized (shares) | 1,200,000 | 1,200,000 | 1,200,000 | |||
Preferred stock, par value ($ per share) | $ 0.01 | $ 0.01 | ||||
Preferred stock, outstanding (shares) | 149,904 | 0 | ||||
Convertible preferred stock, issued upon conversion (shares) | 100 | |||||
Ownership maximum per holder after conversion of preferred shares (percent) | 9.90% | |||||
Preferred stock liquidation preference ($ per share) | $ 0.01 | |||||
Preferred stock, issued (shares) | 149,904 | 0 | ||||
Conversion of stock, shares issued | 195,628 | |||||
Share price ($ per share) | $ 4,800.00 | |||||
Series B Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, authorized (shares) | 600,000 | |||||
Preferred stock, outstanding (shares) | 0 | |||||
Preferred stock liquidation preference ($ per share) | $ 0.001 | |||||
Preferred stock, issued (shares) | 0 | |||||
Minimum preferential quarterly dividend ($ per share) | $ 0.001 | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Conversion of stock, shares of common stock converted and retired | 19,562,881 | |||||
Deemed dividend | $ 50,204,000 | $ 0 | ||||
Retirement of treasury stock (in shares) | 467,049 | |||||
Retirement of treasury stock | 4,000 | |||||
Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Deemed dividend | $ 50,200,000 | (50,204,000) | ||||
Other deemed dividends | $ 0 |
Employee Incentive Plans - Schedule of Stock-Based Compensation Expense Recorded for Stock Options, Warrants and Series F Convertible Preferred Stock (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 15,122 | $ 18,095 | $ 47,455 | $ 56,898 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 880 | 1,505 | 3,274 | 4,616 |
Origination and servicing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 721 | 852 | 2,079 | 2,622 |
Engineering and product development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 3,295 | 4,737 | 10,578 | 15,443 |
Other general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 10,226 | 11,001 | 31,524 | 34,217 |
RSUs and PBRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 14,986 | 17,543 | 46,667 | 54,587 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 136 | 552 | 788 | 1,827 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 484 |
Employee Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 15,122 | $ 18,095 | $ 47,455 | $ 56,898 |
Internally Developed Software | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, capitalized amount | 1,200 | 1,400 | $ 4,000 | 5,000 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 10,622,273 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested1 | $ 99,300 | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 136,100 | $ 136,100 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 10 months 24 days | |||
PBRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 1,424,438 | |||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | 6,300 | $ 6,300 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 4 months 24 days | |||
PBRSU performance period | 1 year | |||
Stock-based compensation expense | 700 | 1,000 | $ 1,800 | 3,500 |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 484 |
Minimum | PBRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance share target range (percent) | 0.00% | |||
Maximum | PBRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance share target range (percent) | 200.00% | |||
One-half of Grant Vesting in Two Years Following Completion of Performance Period [Member] | PBRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
PBRSU vesting period | 2 years |
Employee Incentive Plans - RSU and PBRSU Activity and Weighted Average Grant Date Fair Value table (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
$ / shares
shares
| |
PBRSUs | |
Number of Shares (shares) | |
Unvested, beginning (shares) | shares | 471,589 |
Granted (shares) | shares | 1,424,438 |
Vested (shares) | shares | (142,940) |
Forfeited/expired (shares) | shares | (272,760) |
Unvested, ending (shares) | shares | 1,480,327 |
Weighted- Average Grant Date Fair Value ($ per share) | |
Unvested, beginning ($ per share) | $ / shares | $ 16.94 |
Granted ($ per share) | $ / shares | 4.67 |
Vested ($ per share) | $ / shares | 17.59 |
Forfeited/expired ($ per share) | $ / shares | 13.85 |
Unvested, ending ($ per share) | $ / shares | $ 5.60 |
RSUs | |
Number of Shares (shares) | |
Unvested, beginning (shares) | shares | 9,597,404 |
Granted (shares) | shares | 10,622,273 |
Vested (shares) | shares | (3,121,385) |
Forfeited/expired (shares) | shares | (4,758,401) |
Unvested, ending (shares) | shares | 12,339,891 |
Weighted- Average Grant Date Fair Value ($ per share) | |
Unvested, beginning ($ per share) | $ / shares | $ 16.78 |
Granted ($ per share) | $ / shares | 9.34 |
Vested ($ per share) | $ / shares | 16.18 |
Forfeited/expired ($ per share) | $ / shares | 13.71 |
Unvested, ending ($ per share) | $ / shares | $ 11.72 |
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (74) | $ 97 | $ 245 | $ (341) |
Leases (Details) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
lease_termination_option
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
|
Lessee, Lease, Description [Line Items] | |||||
Variable lease costs | $ 0.4 | $ 0.4 | $ 1.1 | $ 1.2 | |
Lease renewal term | 15 years | 15 years | |||
Security deposit | $ 0.8 | $ 0.8 | |||
Letters of credit outstanding, amount | 5.5 | 5.5 | |||
Number of operating lease termination options exercised | lease_termination_option | 1 | ||||
Reduction in operating lease liability | $ 6.1 | ||||
Decrease In operating lease asset | $ 5.3 | ||||
Operating lease impairment | $ 0.9 | $ 0.0 | $ 3.6 | $ 0.0 | |
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 1 year | 1 year | |||
Sublease term | 1 year | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 9 years | 9 years | |||
Sublease term | 2 years |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
Operating lease assets | $ 76,226 | $ 93,485 |
Operating lease liabilities | $ 98,204 | $ 112,344 |
Leases - Net Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Lessee, Lease, Description [Line Items] | ||||
Net lease costs | $ (2,602) | $ (3,442) | $ (8,724) | $ (11,590) |
Variable lease costs | 400 | 400 | 1,100 | 1,200 |
Other general and administrative | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs | (4,140) | (4,617) | (13,333) | (14,788) |
Other revenue | ||||
Lessee, Lease, Description [Line Items] | ||||
Sublease revenue | $ 1,538 | $ 1,175 | $ 4,609 | $ 3,198 |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Leases [Abstract] | ||||
Leased assets obtained in exchange for new and amended operating lease liabilities | $ 0 | $ 0 | $ 84 | $ 15,277 |
Leases - Future Operating Lease Payments and Sublease Revenue (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
Remainder of 2020 | $ 4,696 | |
2021 | 19,271 | |
2022 | 14,134 | |
2023 | 10,761 | |
2024 | 11,072 | |
Thereafter | 68,383 | |
Total lease payments (1) | 128,317 | |
Discount effect | 30,113 | |
Present value of future minimum lease payments | 98,204 | $ 112,344 |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | ||
Remainder of 2020 | (1,965) | |
2021 | (6,767) | |
2022 | (2,918) | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments (1) | (11,650) | |
Operating Lease Payments, Net [Abstract] | ||
Remainder of 2020 | 2,731 | |
2021 | 12,504 | |
2022 | 11,216 | |
2023 | 10,761 | |
2024 | 11,072 | |
Thereafter | 68,383 | |
Total lease payments (1) | $ 116,667 | |
Lease term of operating lease not yet commenced | 8 years 3 months | |
Undiscounted future rent of operating lease not yet commenced | $ 8,600 |
Leases - Weighted-average Lease Term and Discount Rate (Details) |
Sep. 30, 2020 |
---|---|
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 9 years 1 month 2 days |
Weighted-average discount rate (percent) | 5.76% |
Commitments and Contingencies - Additional Information (Detail) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Feb. 18, 2020 |
Oct. 31, 2020 |
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Commitments and Contingencies [Line Items] | ||||||
Loan purchase obligation period | 2 days | |||||
Contingent loan purchase commitment limit | $ 8,500,000 | $ 8,500,000 | $ 91,300,000 | |||
Commitment repurchases | 414,000 | 2,800,000 | $ 4,200,000 | |||
Deposit | 9,000,000.0 | 9,000,000.0 | 9,000,000 | |||
Loan purchase obligation | 28,900,000 | |||||
Fair value | 4,500,000 | 4,500,000 | 45,700,000 | |||
Contingent liabilities | 22,342,000 | 22,342,000 | $ 16,000,000 | |||
Subsequent Event | ||||||
Commitments and Contingencies [Line Items] | ||||||
Commitment repurchases | $ 0 | |||||
Radius Bancorp, Inc. Merger | ||||||
Commitments and Contingencies [Line Items] | ||||||
Value of cash and stock transaction | $ 185,000,000 | |||||
Contingent purchase price and expense adjustments | $ 22,000,000 | |||||
Acquisition-related Agreements | ||||||
Commitments and Contingencies [Line Items] | ||||||
Contingent purchase price and expense adjustments | $ 3,000,000 | $ 3,000,000 | ||||
Regulatory Examinations and Actions Relating to the Company's Business Practices and Licensing | ||||||
Commitments and Contingencies [Line Items] | ||||||
APR safe harbor set forth in other settlements by the State of Colorado (percent) | 36.00% |
Restructuring Costs - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Apr. 21, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | $ 753 | $ 17,789 | ||||
2020 Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Percent of total workforce included in workforce reduction (percent) | 30.00% | |||||
2020 Restructuring Plan | Compensation Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | (500) | 8,000 | ||||
Restructuring costs paid | $ 7,900 | |||||
2020 Restructuring Plan | Lease Expenses and Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 1,300 | 5,600 | ||||
2020 Restructuring Plan | Impairment of Internally Developed Software | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 0 | 4,200 | ||||
2020 Restructuring Plan | Operating Expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 800 | $ 0 | 17,800 | $ 0 | ||
2020 Restructuring Plan | Accrued Expenses and Other Liabilities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | $ 100 | $ 100 | $ 100 |
Restructuring Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 753 | $ 17,789 |
Sales and marketing | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | (108) | 1,271 |
Origination and servicing | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | (113) | 793 |
Engineering and product development | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | (227) | 7,245 |
Other general and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 1,201 | $ 8,480 |
Segment Reporting (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
customer
segment
| |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 1 |
Sales Revenue, Net | |
Segment Reporting Information [Line Items] | |
Number of individual customers and investors accounting for more than 10% of revenue | customer | 0 |
Related Party Transactions - Summary of Deposits and Withdrawals Made by Related Parties (Detail) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 20, 2020 |
Feb. 29, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Related Party Transaction [Line Items] | |||||
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
One-time cash payment | $ 50,200 | $ 50,200 | |||
Related Party Fund | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Expense | $ 140 | $ 684 | |||
Related Party Fund | Investor fees - Funds and SMAs | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Income | 52 | 74 | |||
Related Party Fund | |||||
Related Party Transaction [Line Items] | |||||
Loans | 0 | $ 77 | |||
Other Assets | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment | $ 7,800 | ||||
Ownership (percent) | 23.00% | ||||
Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Conversion of stock, shares converted | 19,562,881 | ||||
Common Stock | Largest Stockholder | |||||
Related Party Transaction [Line Items] | |||||
Conversion of stock, shares converted | 19,562,881 | ||||
Series A Preferred Stock | Largest Stockholder | |||||
Related Party Transaction [Line Items] | |||||
Conversion of stock, shares issued | 195,628 |
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