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Securitizations and Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2022

Summary of Select Information Related to VIEs

The following tables provide the classifications of assets and liabilities on the Balance Sheet for the Company’s transactions with consolidated and unconsolidated VIEs. Additionally, the assets and liabilities in the tables below exclude intercompany balances that eliminate in consolidation:


September 30, 2022	Consolidated VIEs		Unconsolidated VIEs		Total
Assets

Restricted cash	$	8,600	$	—	$	8,600
Securities available for sale at fair value	—		22,445		22,445

Retail and certificate loans held for investment at fair value	2,940		—		2,940
Other loans held for investment at fair value	6,375		—		6,375
Other assets	218		11,351		11,569
Total assets	$	18,133	$	33,796	$	51,929
Liabilities
Retail notes, certificates and secured borrowings at fair value	$	2,940	$	—	$	2,940
Payable on Structured Program borrowings	11,185		—		11,185
Other liabilities	39		—		39
Total liabilities	14,164		—		14,164
Total net assets	$	3,969	$	33,796	$	37,765


December 31, 2021	Consolidated VIEs		Unconsolidated VIEs		Total
Assets
Restricted cash	$	13,462	$	—	$	13,462
Securities available for sale at fair value	—		58,177		58,177
Loans held for sale at fair value	41,734		—		41,734
Retail and certificate loans held for investment at fair value	10,281		—		10,281
Other loans held for investment at fair value	20,929		—		20,929
Other assets	584		17,156		17,740
Total assets	$	86,990	$	75,333	$	162,323
Liabilities

Retail notes, certificates and secured borrowings at fair value	$	10,281	$	—	$	10,281
Payable on Structured Program borrowings	65,451		—		65,451
Other liabilities	467		—		467
Total liabilities	76,199		—		76,199
Total net assets	$	10,791	$	75,333	$	86,124

The following tables present total unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary:


September 30, 2022	Total VIE Assets		Securities Available for Sale		Other Assets		Net Assets



Carrying value	$	625,017	$	22,445	$	11,351	$	33,796
Total exposure	N/A		$	22,445	$	11,351	$	33,796


December 31, 2021	Total VIE Assets		Securities Available for Sale		Other Assets		Net Assets
Carrying value	$	1,386,279	$	58,177	$	17,156	$	75,333
Total exposure	N/A		$	58,177	$	17,156	$	75,333

N/A – Not applicable

Summary of Activity Related to Personal Whole Loan Securitizations

The following table summarizes activity related to the Unconsolidated Trusts and Certificate Program trusts, with the transfers accounted for as a sale on the Company’s financial statements:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Principal derecognized from loans securitized or sold	$	—	$	—	$	41,023	$	—
Net gains recognized from loans securitized or sold	$	—	$	—	$	259	$	—
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement	$	—	$	—	$	2,180	$	—

Cash proceeds from servicing and other administrative fees on loans securitized or sold	$	1,782	$	5,152	$	7,294	$	19,600
Proceeds from sale of securities by consolidated VIE	$	—	$	—	$	5,320	$	—
Cash proceeds for interest received on senior securities and subordinated securities	$	1,294	$	975	$	6,373	$	6,586

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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