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. | ☐ |
ACL | Allowance for Credit Losses (includes the allowance for loan and lease losses, allowance for securities available for sale and reserve for unfunded lending commitments) | ||||
Acquisition | Acquisition of Radius Bancorp, Inc. | ||||
AFS | Available for Sale | ||||
ALLL | Allowance for Loan and Lease Losses | ||||
Annual Report | Annual Report on Form 10-K for the year ended December 31, 2023 | ||||
ASU | Accounting Standards Update | ||||
AUM | Assets Under Management (outstanding balances of Loan Originations serviced by the Company including loans sold to investors as well as loans held for investment and held for sale by the Company) | ||||
Balance Sheet | Condensed Consolidated Balance Sheets | ||||
CECL | Current Expected Credit Losses (Accounting Standards Update 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) | ||||
CET1 | Common Equity Tier 1 | ||||
CET1 Capital Ratio | Common Equity Tier 1 capital divided by total risk-weighted assets as defined under the Basel III capital framework | ||||
DCF | Discounted Cash Flow | ||||
EPS | Earnings Per Share | ||||
Exchange Act | Securities Exchange Act of 1934, as amended | ||||
FRB or Federal Reserve | Board of Governors of the Federal Reserve System and, as applicable, Federal Reserve Bank(s) | ||||
GAAP | Accounting Principles Generally Accepted in the United States of America | ||||
HFI | Loans which are retained by the Company and held for investment | ||||
HFS | Held for sale loans expected to be sold to investors, including Marketplace Loans | ||||
Income Statement | Condensed Consolidated Statements of Income | ||||
LC Bank or LendingClub Bank | LendingClub Bank, National Association | ||||
LendingClub, LC, the Company, we, us, or our | LendingClub Corporation and its subsidiaries | ||||
Loan Originations | Unsecured personal loans and auto refinance loans originated by the Company or facilitated by third-party issuing banks | ||||
Marketplace Loans | Loan Originations designated as HFS and subsequently sold to investors | ||||
N/M | Not meaningful | ||||
OCC | Office of the Comptroller of the Currency | ||||
Parent | LendingClub Corporation (the Parent Company of LendingClub Bank, National Association and other subsidiaries) | ||||
PPNR or Pre-Provision Net Revenue | PPNR, or Pre-Provision Net Revenue, is a non-GAAP financial measure calculated by subtracting the provision for credit losses and income tax benefit/expense from net income | ||||
Radius | Radius Bancorp, Inc. | ||||
SEC | United States Securities and Exchange Commission | ||||
Securities Act | Securities Act of 1933, as amended | ||||
Structured Certificates | Asset-backed securitization transaction where the Company retains the senior note security and sells the residual certificate on a pool of loans to a marketplace investor at a predetermined price |
Structured Program transactions | Asset-backed securitization transactions, including Structured Certificate transactions, where certain accredited investors and qualified institutional buyers have the opportunity to invest in securities backed by a pool of unsecured personal whole loans | ||||
Tier 1 Capital Ratio | Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under the Basel III capital framework | ||||
Tier 1 Leverage Ratio | Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by quarterly adjusted average assets as defined under the Basel III capital framework | ||||
Total Capital Ratio | Total capital, which includes Common Equity Tier 1 capital, Tier 1 capital and allowance for credit losses and qualifying subordinated debt that qualifies as Tier 2 capital, divided by total risk-weighted assets as defined under the Basel III capital framework | ||||
Unsecured personal loans | Unsecured personal loans originated on the Company’s platforms, including an online direct to consumer platform and a platform connected with a network of education and patient finance providers | ||||
VIE | Variable Interest Entity |
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest-bearing deposits in banks | |||||||||||
Total cash and cash equivalents | |||||||||||
Restricted cash (1) | |||||||||||
Securities available for sale at fair value ($ | |||||||||||
Loans held for sale at fair value | |||||||||||
Loans and leases held for investment | |||||||||||
Allowance for loan and lease losses | ( | ( | |||||||||
Loans and leases held for investment, net | |||||||||||
Loans held for investment at fair value (1)(2) | |||||||||||
Property, equipment and software, net | |||||||||||
Goodwill | |||||||||||
Other assets (1) | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Equity | |||||||||||
Deposits: | |||||||||||
Interest-bearing | $ | $ | |||||||||
Noninterest-bearing | |||||||||||
Total deposits | |||||||||||
Borrowings (1)(2) | |||||||||||
Other liabilities (1) | |||||||||||
Total liabilities | |||||||||||
Equity | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Non-interest income: | |||||||||||
Marketplace revenue | $ | $ | |||||||||
Other non-interest income | |||||||||||
Total non-interest income | |||||||||||
Interest income: | |||||||||||
Interest on loans held for sale | |||||||||||
Interest and fees on loans and leases held for investment | |||||||||||
Interest on loans held for investment at fair value (1) | |||||||||||
Interest on securities available for sale | |||||||||||
Other interest income | |||||||||||
Total interest income | |||||||||||
Interest expense: | |||||||||||
Interest on deposits | |||||||||||
Other interest expense (1) | |||||||||||
Total interest expense | |||||||||||
Net interest income | |||||||||||
Total net revenue | |||||||||||
Provision for credit losses | |||||||||||
Non-interest expense: | |||||||||||
Compensation and benefits | |||||||||||
Marketing | |||||||||||
Equipment and software | |||||||||||
Depreciation and amortization | |||||||||||
Professional services | |||||||||||
Occupancy | |||||||||||
Other non-interest expense | |||||||||||
Total non-interest expense | |||||||||||
Income before income tax expense | |||||||||||
Income tax expense | ( | ( | |||||||||
Net income | $ | $ | |||||||||
Earnings per share: (2) | |||||||||||
Basic EPS | $ | $ | |||||||||
Diluted EPS | $ | $ | |||||||||
Weighted-average common shares – Basic | |||||||||||
Weighted-average common shares – Diluted | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss): | |||||||||||
Change in 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 | ( | ||||||||||
Total comprehensive income | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net issuances under equity incentive plans | ( | — | — | ( | |||||||||||||||||||||||||||||||
Net unrealized loss on securities available for sale, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net issuances under equity incentive plans | ( | — | — | ( | |||||||||||||||||||||||||||||||
Net unrealized gain on securities available for sale, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||||||||||
Net fair value adjustments | |||||||||||
Change in fair value of loan servicing assets | |||||||||||
Gain on sales of loans | ( | ( | |||||||||
Provision for credit losses | |||||||||||
Accretion of loan deferred fees and costs | ( | ( | |||||||||
Stock-based compensation, net | |||||||||||
Depreciation and amortization | |||||||||||
Other, net | ( | ( | |||||||||
Net change to loans held for sale | ( | ||||||||||
Net change in operating assets and liabilities: | |||||||||||
Other assets | |||||||||||
Other liabilities | ( | ( | |||||||||
Net cash (used for) provided by operating activities | ( | ||||||||||
Cash Flows from Investing Activities: | |||||||||||
Net change in loans and leases (1) | ( | ||||||||||
Purchases of securities available for sale | ( | ||||||||||
Proceeds from maturities and paydowns of securities available for sale | |||||||||||
Purchases of property, equipment and software, net | ( | ( | |||||||||
Other investing activities | ( | ( | |||||||||
Net cash provided by (used for) investing activities | ( | ||||||||||
Cash Flows from Financing Activities: | |||||||||||
Net change in deposits | |||||||||||
Principal payments on borrowings (1) | ( | ( | |||||||||
Proceeds from short-term borrowings | |||||||||||
Other financing activities | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net (Decrease) Increase 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 taxes | $ | $ | |||||||||
Cash paid for operating leases included in the measurement of lease liabilities | $ | $ | |||||||||
Supplemental Non-cash Investing Activity: | |||||||||||
Net securities retained from Structured Program transactions | $ | $ | |||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Origination fees | $ | $ | |||||||||
Servicing fees | |||||||||||
Gain on sales of loans | |||||||||||
Net fair value adjustments | ( | ( | |||||||||
Total marketplace revenue | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Basic EPS: | |||||||||||
Net income attributable to stockholders | $ | $ | |||||||||
Weighted-average common shares – Basic | |||||||||||
Basic EPS | $ | $ | |||||||||
Diluted EPS: | |||||||||||
Net income attributable to stockholders | $ | $ | |||||||||
Weighted-average common shares – Diluted | |||||||||||
Diluted EPS | $ | $ |
March 31, 2024 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||||||||||||
Senior asset-backed securities related to Structured Program transactions | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
U.S. agency residential mortgage-backed securities | ( | ||||||||||||||||||||||||||||
Other asset-backed securities related to Structured Program transactions (1) | ( | ||||||||||||||||||||||||||||
U.S. agency securities | ( | ||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ||||||||||||||||||||||||||||
Other asset-backed securities | ( | ||||||||||||||||||||||||||||
Municipal securities | ( | ||||||||||||||||||||||||||||
Total securities available for sale (2) | $ | $ | $ | ( | $ | ( | $ |
December 31, 2023 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Senior asset-backed securities related to Structured Program transactions | $ | $ | $ | ( | $ | ||||||||||||||||||
U.S. agency residential mortgage-backed securities | ( | ||||||||||||||||||||||
U.S. agency securities | ( | ||||||||||||||||||||||
Other asset-backed securities related to Structured Program transactions (1) | |||||||||||||||||||||||
Mortgage-backed securities | ( | ||||||||||||||||||||||
Other asset-backed securities | ( | ||||||||||||||||||||||
Municipal securities | ( | ||||||||||||||||||||||
Total securities available for sale (2) | $ | $ | $ | ( | $ |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
March 31, 2024 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Senior asset-backed securities related to Structured Program transactions | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
U.S. agency residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. agency securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Other asset-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Municipal securities | ( | ( | |||||||||||||||||||||||||||||||||
Total securities with unrealized losses | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||
December 31, 2023 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Senior asset-backed securities related to Structured Program transactions | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
U.S. agency residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. agency securities | ( | ( | |||||||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other asset-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Municipal securities | ( | ( | |||||||||||||||||||||||||||||||||
Total securities with unrealized losses | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Allowance for Credit Losses | Other asset-backed securities related to Structured Program transactions | ||||
Beginning balance as of December 31, 2023 | $ | ||||
Credit loss expense for securities available for sale | |||||
Ending balance as of March 31, 2024 | $ |
March 31, 2024 | Amortized Cost | Fair Value | Weighted- average Yield (1) | ||||||||||||||
Due after 1 year through 5 years: | |||||||||||||||||
Senior asset-backed securities related to Structured Program transactions | $ | $ | |||||||||||||||
Other asset-backed securities related to Structured Program transactions | |||||||||||||||||
U.S. agency securities | |||||||||||||||||
Mortgage-backed securities | |||||||||||||||||
Other asset-backed securities | |||||||||||||||||
Municipal securities | |||||||||||||||||
U.S. agency residential mortgage-backed securities | |||||||||||||||||
Total due after 1 year through 5 years | % | ||||||||||||||||
Due after 5 years through 10 years: | |||||||||||||||||
U.S. agency securities | |||||||||||||||||
Other asset-backed securities | |||||||||||||||||
U.S. agency residential mortgage-backed securities | |||||||||||||||||
Mortgage-backed securities | |||||||||||||||||
Municipal securities | |||||||||||||||||
Total due after 5 years through 10 years | % | ||||||||||||||||
Due after 10 years: | |||||||||||||||||
U.S. agency residential mortgage-backed securities | |||||||||||||||||
U.S. agency securities | |||||||||||||||||
Mortgage-backed securities | |||||||||||||||||
Other asset-backed securities | |||||||||||||||||
Municipal securities | |||||||||||||||||
Total due after 10 years | % | ||||||||||||||||
Total securities available for sale | $ | $ | % |
March 31, 2024 | December 31, 2023 | ||||||||||
Unsecured personal | $ | $ | |||||||||
Residential mortgages | |||||||||||
Secured consumer | |||||||||||
Total consumer loans held for investment | |||||||||||
Equipment finance (1) | |||||||||||
Commercial real estate | |||||||||||
Commercial and industrial | |||||||||||
Total commercial loans and leases held for investment | |||||||||||
Total loans and leases held for investment | |||||||||||
Allowance for loan and lease losses | ( | ( | |||||||||
Loans and leases held for investment, net (2) | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Gross allowance for loan and lease losses (1) | $ | $ | |||||||||
Recovery asset value (2) | ( | ( | |||||||||
Allowance for loan and lease losses | $ | $ |
March 31, 2024 | Consumer | Commercial | Total | ||||||||||||||
Loans and leases held for investment | $ | $ | |||||||||||||||
Allowance for loan and lease losses | $ | $ | |||||||||||||||
Allowance ratio (1) | % | % | % | ||||||||||||||
Gross allowance for loan and lease losses | $ | $ | |||||||||||||||
Gross allowance ratio (1) | % | % | % | ||||||||||||||
December 31, 2023 | Consumer | Commercial | Total | ||||||||||||||
Loans and leases held for investment | $ | $ | |||||||||||||||
Allowance for loan and lease losses | $ | ||||||||||||||||
Allowance ratio (1) | % | % | % | ||||||||||||||
Gross allowance for loan and lease losses | $ | $ | |||||||||||||||
Gross allowance ratio (1) | % | % | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
Consumer | Commercial | Total | Consumer | Commercial | Total | ||||||||||||||||||||||||||||||
Allowance for loan and lease losses, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Credit loss expense for loans and leases held for investment | |||||||||||||||||||||||||||||||||||
Charge-offs (1) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Reserve for unfunded lending commitments, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Credit loss expense for unfunded lending commitments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Reserve for unfunded lending commitments, end of period (2) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Gross Charge-Offs by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | ||||||||||||||||||||||||||||||||||||||
Unsecured personal | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||
Secured consumer | ||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans held for investment | ||||||||||||||||||||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases held for investment | ||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases held for investment | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | Term Loans and Leases by Origination Year | |||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | ||||||||||||||||||||||||||||||||||||||
Unsecured personal | ||||||||||||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
90 or more days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total unsecured personal (1) | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
90 or more days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||
Secured consumer | ||||||||||||||||||||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
90 or more days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total secured consumer | ||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans held for investment | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023 | Term Loans and Leases by Origination Year | |||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||
Unsecured personal | ||||||||||||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
90 or more days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total unsecured personal (1) | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
90 or more days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total residential mortgages | ||||||||||||||||||||||||||||||||||||||||||||
Secured consumer | ||||||||||||||||||||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
90 or more days past due | ||||||||||||||||||||||||||||||||||||||||||||
Total secured consumer | ||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans held for investment | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | Term Loans and Leases by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | Guaranteed Amount (1) | |||||||||||||||||||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total equipment finance | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases held for investment | $ | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023 | Term Loans and Leases by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | Guaranteed Amount (1) | |||||||||||||||||||||||||||||||||||||||||||
Equipment finance | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total equipment finance | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases held for investment | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | 30-59 Days | 60-89 Days | 90 or More Days | Total Days Past Due | Guaranteed Amount (1) | ||||||||||||||||||||||||
Equipment finance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Total commercial loans and leases held for investment | $ | $ | $ | $ | $ |
December 31, 2023 | 30-59 Days | 60-89 Days | 90 or More Days | Total Days Past Due | Guaranteed Amount (1) | ||||||||||||||||||||||||
Equipment finance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Total commercial loans and leases held for investment | $ | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Short-term payment reduction | $ | $ | |||||||||
Permanent loan modification | |||||||||||
Debt settlement | |||||||||||
Total loan modifications – unsecured personal loans | $ | $ | |||||||||
% of unsecured personal loans at amortized cost as of period end | % | % |
March 31, 2024 | March 31, 2023 (1) | ||||||||||||||||||||||||||||||||||
Short-term Payment Reduction | Permanent Loan Modification | Debt Settlement | Short-term Payment Reduction | Permanent Loan Modification | Debt Settlement | ||||||||||||||||||||||||||||||
Unsecured personal loans | |||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
30-59 days | |||||||||||||||||||||||||||||||||||
60-89 days | |||||||||||||||||||||||||||||||||||
90 or more days | |||||||||||||||||||||||||||||||||||
Total loan modifications | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023(1) | ||||||||||
Short-term payment reduction | $ | $ | |||||||||
Permanent loan modification | |||||||||||
Debt settlement | |||||||||||
Total loan modifications – unsecured personal loans | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Nonaccrual | Nonaccrual with no related ACL (1) | Nonaccrual | Nonaccrual with no related ACL (1) | ||||||||||||||||||||
Unsecured personal | $ | $ | $ | $ | |||||||||||||||||||
Residential mortgages | |||||||||||||||||||||||
Secured consumer | |||||||||||||||||||||||
Total nonaccrual consumer loans held for investment | |||||||||||||||||||||||
Equipment finance | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||
Total nonaccrual commercial loans and leases held for investment (2) | |||||||||||||||||||||||
Total nonaccrual loans and leases held for investment | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Nonaccrual | Nonaccrual Ratios (1) | Nonaccrual | Nonaccrual Ratios (1) | ||||||||||||||||||||
Total nonaccrual consumer loans held for investment | $ | % | $ | % | |||||||||||||||||||
Total nonaccrual commercial loans and leases held for investment | % | % | |||||||||||||||||||||
Total nonaccrual loans and leases held for investment | $ | % | $ | % |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
Consolidated | Unconsolidated | Total | Consolidated | Unconsolidated | Total | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Restricted cash | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Securities available for sale at fair value | |||||||||||||||||||||||||||||||||||
Loans held for investment at fair value (1) | |||||||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Borrowings (1) | |||||||||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total net assets (maximum loss exposure) | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, | |||||
2024 | |||||
Fair value of consideration received: | |||||
Cash | $ | ||||
Securities retained from Structured Program transactions | |||||
Other assets, net | |||||
Total consideration | |||||
Fair value of loans sold | ( | ||||
Gain on sales of loans (1) | $ | ||||
Cash proceeds from continuing involvement: | |||||
Servicing and other administrative fees | $ | ||||
Interest received on securities retained from Structured Program transactions | $ | ||||
March 31, 2024 | Level 1 | Level 2 | Level 3 | Balance at Fair Value | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Loans held for sale at fair value | $ | $ | $ | $ | |||||||||||||||||||
Loans held for investment at fair value | |||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
Senior asset-backed securities related to Structured Program transactions | |||||||||||||||||||||||
U.S. agency residential mortgage-backed securities | |||||||||||||||||||||||
Other asset-backed securities related to Structured Program transactions | |||||||||||||||||||||||
U.S. agency securities | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
Other asset-backed securities | |||||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Total securities available for sale | |||||||||||||||||||||||
Servicing assets | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
December 31, 2023 | Level 1 | Level 2 | Level 3 | Balance at Fair Value | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Loans held for sale at fair value | $ | $ | $ | $ | |||||||||||||||||||
Loans held for investment at fair value (1) | |||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
Senior asset-backed securities related to Structured Program transactions | |||||||||||||||||||||||
U.S. agency residential mortgage-backed securities | |||||||||||||||||||||||
U.S. agency securities | |||||||||||||||||||||||
Other asset-backed securities related to Structured Program transactions | |||||||||||||||||||||||
Mortgage-backed securities | |||||||||||||||||||||||
Other asset-backed securities | |||||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Total securities available for sale | |||||||||||||||||||||||
Servicing assets | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Borrowings (1) | |||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum | Maximum | Weighted- Average | Minimum | Maximum | Weighted- Average | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Annualized net charge-off rate (1) | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Annualized prepayment rate (1) | % | % | % | % | % | % |
March 31, 2024 | December 31, 2023 | ||||||||||
Loans held for sale at fair value | $ | $ | |||||||||
Expected remaining weighted-average life (in years) | |||||||||||
Discount rate: | |||||||||||
100 basis point increase | $ | ( | $ | ( | |||||||
200 basis point increase | $ | ( | $ | ( | |||||||
Annualized net charge-off rate: | |||||||||||
10% increase | $ | ( | $ | ( | |||||||
20% increase | $ | ( | $ | ( | |||||||
Annualized prepayment rate: | |||||||||||
10% increase | $ | ( | $ | ( | |||||||
20% increase | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Fair value at beginning of period | $ | $ | |||||||||
Originations and purchases | |||||||||||
Sales | ( | ( | |||||||||
Principal payments | ( | ( | |||||||||
Fair value adjustments recorded in earnings | ( | ( | |||||||||
Fair value at end of period | $ | $ | |||||||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Total | 90 or more days past due | Total | 90 or more days past due | ||||||||||||||||||||
Aggregate unpaid principal balance | $ | $ | $ | $ | |||||||||||||||||||
Cumulative fair value adjustments | ( | ( | ( | ( | |||||||||||||||||||
Fair value of loans held for sale | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum | Maximum | Weighted- Average | Minimum | Maximum | Weighted- Average | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Annualized net charge-off rate (1) | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Annualized prepayment rate (1) | % | % | % | % | % | % |
March 31, 2024 | December 31, 2023 | ||||||||||
Loans held for investment at fair value | $ | $ | |||||||||
Expected remaining weighted-average life (in years) | |||||||||||
Discount rate: | |||||||||||
100 basis point increase | $ | ( | $ | ( | |||||||
200 basis point increase | $ | ( | $ | ( | |||||||
Annualized net charge-off rate: | |||||||||||
10% increase | $ | ( | $ | ( | |||||||
20% increase | $ | ( | $ | ( | |||||||
Annualized prepayment rate: | |||||||||||
10% increase | $ | ( | $ | ( | |||||||
20% increase | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Fair value at beginning of period | $ | $ | |||||||||
Purchases | |||||||||||
Principal payments | ( | ( | |||||||||
Interest income accretion and fair value adjustments recorded in earnings | |||||||||||
Fair value at end of period | $ | $ | |||||||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Total | 90 or more days past due | Total | 90 or more days past due | ||||||||||||||||||||
Aggregate unpaid principal balance | $ | $ | $ | $ | |||||||||||||||||||
Cumulative fair value adjustments | ( | ( | ( | ( | |||||||||||||||||||
Fair value of loans held for investment | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Fair value of interests held | $ | $ | |||||||||
Expected remaining weighted-average life (in years) | |||||||||||
Discount rate: | |||||||||||
100 basis point increase | $ | ( | $ | ( | |||||||
200 basis point increase | $ | ( | $ | ( | |||||||
Three Months Ended March 31, 2024 | |||||
Fair value at beginning of period | $ | ||||
Additions | |||||
Cash received | ( | ||||
Change in unrealized loss | ( | ||||
Fair value at end of period | $ | ||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum | Maximum | Weighted- Average | Minimum | Maximum | Weighted- Average | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rates | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Annualized net charge-off rate (1) | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Annualized prepayment rate (1) | % | % | % | % | % | % |
March 31, 2024 | December 31, 2023 | ||||||||||
Fair value of interests held | $ | $ | |||||||||
Expected remaining weighted-average life (in years) | |||||||||||
Discount rate: | |||||||||||
100 basis point increase | $ | ( | $ | ( | |||||||
200 basis point increase | $ | ( | $ | ( | |||||||
Annualized net charge-off rate: | |||||||||||
10% increase | $ | ( | $ | ( | |||||||
20% increase | $ | ( | $ | ( | |||||||
Annualized prepayment rate: | |||||||||||
10% increase | $ | ( | $ | ( | |||||||
20% increase | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Fair value at beginning of period | $ | $ | |||||||||
Additions | |||||||||||
Cash received | ( | ( | |||||||||
Credit loss expense for securities available for sale | ( | ||||||||||
Change in unrealized loss | ( | ||||||||||
Fair value at end of period | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum | Maximum | Weighted- Average | Minimum | Maximum | Weighted- Average | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Annualized net charge-off rate (1) | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Annualized prepayment rate (1) | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Market servicing rate (2) | % | % | % | % | % | % |
March 31, 2024 | December 31, 2023 | ||||||||||
Fair value of servicing assets | $ | $ | |||||||||
Expected remaining weighted-average life (in years) | |||||||||||
Discount rate: | |||||||||||
100 basis point increase | $ | ( | $ | ( | |||||||
200 basis point increase | $ | ( | $ | ( | |||||||
Annualized net charge-off rate: | |||||||||||
10% increase | $ | ( | $ | ( | |||||||
20% increase | $ | ( | $ | ( | |||||||
Annualized prepayment rate: | |||||||||||
10% increase | $ | ( | $ | ( | |||||||
20% increase | $ | ( | $ | ( |
March 31, 2024 | December 31, 2023 | ||||||||||
Weighted-average market servicing rate assumptions | % | % | |||||||||
Change in fair value from: | |||||||||||
Servicing rate increase by | $ | ( | $ | ( | |||||||
Servicing rate decrease by | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Fair value at beginning of period | $ | $ | |||||||||
Issuances (1) | |||||||||||
Change in fair value, included in Marketplace revenue | ( | ( | |||||||||
Other net changes | |||||||||||
Fair value at end of period | $ | $ | |||||||||
March 31, 2024 | Carrying Amount | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Loans and leases held for investment, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits (1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ |
December 31, 2023 | Carrying Amount | Level 1 | Level 2 | Level 3 | Balance at Fair Value | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Loans and leases held for investment, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits (1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Notional (1) | Gross Derivative Liability Fair Value (2) | Notional (1) | Gross Derivative Liability Fair Value (2) | ||||||||||||||||||||
Credit derivatives | $ | $ | ( | $ | $ | ( | |||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Notional | Gross Derivative Liability Fair Value (1) | Notional | Gross Derivative Liability Fair Value (1) | ||||||||||||||||||||
Derivatives used for hedging: | |||||||||||||||||||||||
Interest rate swaps | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||
Gains (losses) recognized on: | ||||||||
Hedged item | $ | ( | ||||||
Derivatives used for hedging | ||||||||
Interest settlement on derivative (1) | ||||||||
Total gains on fair value hedges (2) | $ | |||||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Balance Sheet Line Item | Carrying Amount of Closed Portfolio (1) | Cumulative Fair Value Adjustment to Hedged Item | Carrying Amount of Closed Portfolio (1) | Cumulative Fair Value Adjustment to Hedged Item | |||||||||||||||||||
Loans and leases held for investment at amortized cost | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Software (1) | $ | $ | |||||||||
Leasehold improvements | |||||||||||
Computer equipment | |||||||||||
Furniture and fixtures | |||||||||||
Total property, equipment and software | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Total property, equipment and software, net | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Gross carrying value | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Net carrying value | $ | $ |
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Deferred tax assets, net (1) | $ | $ | |||||||||
Servicing assets (2) | |||||||||||
Nonmarketable equity investments | |||||||||||
Accrued interest receivable | |||||||||||
Operating lease assets | |||||||||||
Intangible assets, net (3) | |||||||||||
Other | |||||||||||
Total other assets | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Interest-bearing deposits: | |||||||||||
Savings and money market accounts | $ | $ | |||||||||
Certificates of deposit | |||||||||||
Checking accounts | |||||||||||
Total | |||||||||||
Noninterest-bearing deposits | |||||||||||
Total deposits | $ | $ |
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total certificates of deposit | $ |
Three months or less | Over 3 months through 6 months | Over 6 months through 12 months | Over 12 months | Total | |||||||||||||||||||||||||
Certificates of deposit | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Available Borrowing Capacity | Pledged Collateral | Available Borrowing Capacity | Pledged Collateral | ||||||||||||||||||||
FRB Discount Window | $ | $ | $ | $ | |||||||||||||||||||
FHLB of Des Moines (1) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Advances from PPPLF (1): | |||||||||||
Aggregate debt outstanding (fixed interest rate of | $ | $ | |||||||||
Pledged collateral | $ | $ | |||||||||
Retail notes and certificates (2): | |||||||||||
Aggregate debt outstanding | $ | $ | |||||||||
Payable on Structured Program borrowings (3): | |||||||||||
Aggregate debt outstanding | $ | $ | |||||||||
Pledged collateral | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Operating lease liabilities | |||||||||||
Payable to investors (1) | |||||||||||
Other | |||||||||||
Total other liabilities | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
RSUs | $ | $ | |||||||||
PBRSUs | |||||||||||
Stock-based compensation expense, gross | |||||||||||
Less: Capitalized stock-based compensation expense | |||||||||||
Stock-based compensation expense, net | $ | $ |
Number of Units | Weighted- Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2023 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited/expired | ( | $ | |||||||||
Unvested at March 31, 2024 | $ | ||||||||||
Number of Units | Weighted- Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2023 | $ | ||||||||||
Granted | $ | ||||||||||
Forfeited/expired | ( | $ | |||||||||
Unvested at March 31, 2024 | $ | ||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Deferred tax assets, net of liabilities | $ | $ | |||||||||
Valuation allowance | ( | ( | |||||||||
Deferred tax assets, net of valuation allowance | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Lease receivables | $ | $ | |||||||||
Unguaranteed residual asset values | |||||||||||
Unearned income | ( | ( | |||||||||
Deferred fees | |||||||||||
Total | $ | $ |
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total lease payments | $ | ||||
Discount effect | ( | ||||
Present value of future minimum lease payments | $ |
ROU Assets and Lease Liabilities | Balance Sheet Classification | March 31, 2024 | December 31, 2023 | ||||||||
Operating lease assets | $ | $ | |||||||||
Operating lease liabilities | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Non-cash operating activity: | |||||||||||
Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities (1) | $ | $ | ( |
Operating Lease Payments | |||||
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total lease payments | $ | ||||
Discount effect | ( | ||||
Present value of future minimum lease payments | $ |
Lease Term and Discount Rate | March 31, 2024 | December 31, 2023 | |||||||||
Weighted-average remaining lease term (in years) | |||||||||||
Weighted-average discount rate | % | % |
March 31, 2024 | December 31, 2023 | Required Minimum plus Required CCB for Non-Leverage Ratios | |||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
LendingClub Corporation: | |||||||||||||||||||||||||||||
CET1 capital (1) | $ | % | $ | % | % | ||||||||||||||||||||||||
Tier 1 capital | $ | % | $ | % | % | ||||||||||||||||||||||||
Total capital | $ | % | $ | % | % | ||||||||||||||||||||||||
Tier 1 leverage | $ | % | $ | % | % | ||||||||||||||||||||||||
Risk-weighted assets | $ | N/A | $ | N/A | N/A | ||||||||||||||||||||||||
Quarterly adjusted average assets | $ | N/A | $ | N/A | N/A | ||||||||||||||||||||||||
LendingClub Bank: | |||||||||||||||||||||||||||||
CET1 capital (1) | $ | % | $ | % | % | ||||||||||||||||||||||||
Tier 1 capital | $ | % | $ | % | % | ||||||||||||||||||||||||
Total capital | $ | % | $ | % | % | ||||||||||||||||||||||||
Tier 1 leverage | $ | % | $ | % | % | ||||||||||||||||||||||||
Risk-weighted assets | $ | N/A | $ | N/A | N/A | ||||||||||||||||||||||||
Quarterly adjusted average assets | $ | N/A | $ | N/A | N/A |
LendingClub Bank | LendingClub Corporation (Parent only) | Intercompany Eliminations | Consolidated Total | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||||||||||||||||||||
Marketplace revenue | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Other non-interest income | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total non-interest income | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||||||||||||||||||||||||||
Total net revenue | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Non-interest expense | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Income before income tax benefit (expense) | |||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Capital expenditures | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
LendingClub Bank | LendingClub Corporation (Parent only) | Intercompany Eliminations | Consolidated Total | ||||||||||||||||||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
Restricted cash | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment, net | |||||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment at fair value (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Property, equipment and software, net | |||||||||||||||||||||||||||||||||||||||||||||||
Investment in subsidiary | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||||||||||||||||
Other assets | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Total deposits | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Borrowings (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total equity | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ |
As of and for the three months ended | |||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
Non-interest income | $ | 57,800 | $ | 54,129 | $ | 98,990 | |||||||||||
Net interest income | 122,888 | 131,477 | 146,704 | ||||||||||||||
Total net revenue | 180,688 | 185,606 | 245,694 | ||||||||||||||
Non-interest expense | 132,233 | 130,015 | 157,308 | ||||||||||||||
Pre-provision net revenue (1) | 48,455 | 55,591 | 88,386 | ||||||||||||||
Provision for credit losses | 31,927 | 41,907 | 70,584 | ||||||||||||||
Income before income tax expense | 16,528 | 13,684 | 17,802 | ||||||||||||||
Income tax expense | (4,278) | (3,529) | (4,136) | ||||||||||||||
Net income | 12,250 | 10,155 | 13,666 | ||||||||||||||
Basic EPS | $ | 0.11 | $ | 0.09 | $ | 0.13 | |||||||||||
Diluted EPS | $ | 0.11 | $ | 0.09 | $ | 0.13 | |||||||||||
LendingClub Corporation Performance Metrics: | |||||||||||||||||
Net interest margin | 5.8 | % | 6.4 | % | 7.5 | % | |||||||||||
Efficiency ratio (2) | 73.2 | % | 70.0 | % | 64.0 | % | |||||||||||
Return on average equity (ROE) | 3.9 | % | 3.3 | % | 4.6 | % | |||||||||||
Return on average total assets (ROA) | 0.5 | % | 0.5 | % | 0.7 | % | |||||||||||
Marketing as a % of loan originations | 1.47 | % | 1.44 | % | 1.18 | % | |||||||||||
LendingClub Corporation Capital Metrics: | |||||||||||||||||
Common equity tier 1 capital ratio | 17.6 | % | 17.9 | % | 15.6 | % | |||||||||||
Tier 1 leverage ratio | 12.5 | % | 12.9 | % | 12.8 | % | |||||||||||
Book value per common share | $ | 11.40 | $ | 11.34 | $ | 11.08 | |||||||||||
Tangible book value per common share (1) | $ | 10.61 | $ | 10.54 | $ | 10.23 | |||||||||||
Loan Originations (in millions) (3): | |||||||||||||||||
Marketplace loans | $ | 1,361 | $ | 1,432 | $ | 1,286 | |||||||||||
Loan originations held for investment | 285 | 198 | 1,002 | ||||||||||||||
Total loan originations | $ | 1,646 | $ | 1,630 | $ | 2,288 | |||||||||||
Loan originations held for investment as % of total loan originations | 17 | % | 12 | % | 44 | % | |||||||||||
Servicing portfolio AUM (in millions) (4): | |||||||||||||||||
Total servicing portfolio | $ | 13,437 | $ | 14,122 | $ | 16,060 | |||||||||||
Loans serviced for others | $ | 8,671 | $ | 9,336 | $ | 10,504 |
As of and for the Three Months Ended | |||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
Balance Sheet Data: | |||||||||||||||||
Securities available for sale | $ | 2,228,500 | $ | 1,620,262 | $ | 380,028 | |||||||||||
Loans held for sale at fair value | $ | 550,415 | $ | 407,773 | $ | 44,647 | |||||||||||
Loans and leases held for investment at amortized cost | $ | 4,505,816 | $ | 4,850,302 | $ | 5,491,938 | |||||||||||
Gross allowance for loan and lease losses (1) | $ | (311,794) | $ | (355,773) | $ | (368,698) | |||||||||||
Recovery asset value (2) | $ | 52,644 | $ | 45,386 | $ | 19,841 | |||||||||||
Allowance for loan and lease losses | $ | (259,150) | $ | (310,387) | $ | (348,857) | |||||||||||
Loans and leases held for investment at amortized cost, net | $ | 4,246,666 | $ | 4,539,915 | $ | 5,143,081 | |||||||||||
Loans held for investment at fair value (3) | $ | 427,396 | $ | 272,678 | $ | 787,473 | |||||||||||
Total loans and leases held for investment (3) | $ | 4,674,062 | $ | 4,812,593 | $ | 5,930,554 | |||||||||||
Total assets | $ | 9,244,828 | $ | 8,827,463 | $ | 8,754,018 | |||||||||||
Total deposits | $ | 7,521,655 | $ | 7,333,486 | $ | 7,218,854 | |||||||||||
Total liabilities | $ | 7,978,542 | $ | 7,575,641 | $ | 7,563,276 | |||||||||||
Total equity | $ | 1,266,286 | $ | 1,251,822 | $ | 1,190,742 | |||||||||||
Allowance Ratios (4): | |||||||||||||||||
ALLL to total loans and leases held for investment at amortized cost | 5.8 | % | 6.4 | % | 6.4 | % | |||||||||||
ALLL to commercial loans and leases held for investment at amortized cost | 1.9 | % | 1.8 | % | 2.0 | % | |||||||||||
ALLL to consumer loans and leases held for investment at amortized cost | 6.4 | % | 7.2 | % | 7.1 | % | |||||||||||
Gross ALLL to consumer loans and leases held for investment at amortized cost | 7.8 | % | 8.3 | % | 7.5 | % | |||||||||||
Net charge-offs | $ | 80,483 | $ | 82,511 | $ | 49,845 | |||||||||||
Net charge-off ratio(5) | 6.9 | % | 6.6 | % | 3.8 | % |
Three Months Ended | Change (%) | ||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | Q1 2024 vs Q4 2023 | Q1 2024 vs Q1 2023 | |||||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||
Marketplace revenue | $ | 55,891 | $ | 52,181 | $ | 95,634 | 7 | % | (42) | % | |||||||||||||||||||
Other non-interest income | 1,909 | 1,948 | 3,356 | (2) | % | (43) | % | ||||||||||||||||||||||
Total non-interest income | 57,800 | 54,129 | 98,990 | 7 | % | (42) | % | ||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Interest on loans held for sale | 14,699 | 15,883 | 5,757 | (7) | % | 155 | % | ||||||||||||||||||||||
Interest and fees on loans and leases held for investment | 132,393 | 145,223 | 150,467 | (9) | % | (12) | % | ||||||||||||||||||||||
Interest on loans held for investment at fair value (1) | 8,409 | 10,022 | 28,575 | (16) | % | (71) | % | ||||||||||||||||||||||
Interest on securities available for sale | 35,347 | 20,920 | 3,900 | 69 | % | 806 | % | ||||||||||||||||||||||
Other interest income | 16,503 | 16,271 | 13,714 | 1 | % | 20 | % | ||||||||||||||||||||||
Total interest income | 207,351 | 208,319 | 202,413 | — | % | 2 | % | ||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Interest on deposits | 83,963 | 76,253 | 53,273 | 10 | % | 58 | % | ||||||||||||||||||||||
Other interest expense (1) | 500 | 589 | 2,436 | (15) | % | (79) | % | ||||||||||||||||||||||
Total interest expense | 84,463 | 76,842 | 55,709 | 10 | % | 52 | % | ||||||||||||||||||||||
Net interest income | 122,888 | 131,477 | 146,704 | (7) | % | (16) | % | ||||||||||||||||||||||
Total net revenue | 180,688 | 185,606 | 245,694 | (3) | % | (26) | % | ||||||||||||||||||||||
Provision for credit losses | 31,927 | 41,907 | 70,584 | (24) | % | (55) | % | ||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||
Compensation and benefits | 59,554 | 58,591 | 73,307 | 2 | % | (19) | % | ||||||||||||||||||||||
Marketing | 24,136 | 23,465 | 26,880 | 3 | % | (10) | % | ||||||||||||||||||||||
Equipment and software | 12,684 | 13,190 | 13,696 | (4) | % | (7) | % | ||||||||||||||||||||||
Depreciation and amortization | 12,673 | 11,953 | 12,354 | 6 | % | 3 | % | ||||||||||||||||||||||
Professional services | 7,091 | 7,727 | 9,058 | (8) | % | (22) | % | ||||||||||||||||||||||
Occupancy | 3,861 | 3,926 | 4,310 | (2) | % | (10) | % | ||||||||||||||||||||||
Other non-interest expense | 12,234 | 11,163 | 17,703 | 10 | % | (31) | % | ||||||||||||||||||||||
Total non-interest expense | 132,233 | 130,015 | 157,308 | 2 | % | (16) | % | ||||||||||||||||||||||
Income before income tax expense | 16,528 | 13,684 | 17,802 | 21 | % | (7) | % | ||||||||||||||||||||||
Income tax expense | (4,278) | (3,529) | (4,136) | 21 | % | 3 | % | ||||||||||||||||||||||
Net income | $ | 12,250 | $ | 10,155 | $ | 13,666 | 21 | % | (10) | % | |||||||||||||||||||
Three Months Ended | Change (%) | ||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | Q1 2024 vs Q4 2023 | Q1 2024 vs Q1 2023 | |||||||||||||||||||||||||
Origination fees | $ | 70,079 | $ | 76,702 | $ | 70,543 | (9) | % | (1) | % | |||||||||||||||||||
Servicing fees | 19,592 | 17,450 | 26,380 | 12 | % | (26) | % | ||||||||||||||||||||||
Gain on sales of loans | 10,909 | 11,921 | 14,125 | (8) | % | (23) | % | ||||||||||||||||||||||
Net fair value adjustments | (44,689) | (53,892) | (15,414) | (17) | % | 190 | % | ||||||||||||||||||||||
Total marketplace revenue | $ | 55,891 | $ | 52,181 | $ | 95,634 | 7 | % | (42) | % | |||||||||||||||||||
Three Months Ended | Change (%) | ||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | Q1 2024 vs Q4 2023 | Q1 2024 vs Q1 2023 | |||||||||||||||||||||||||
Marketplace loans | $ | 1,361,177 | $ | 1,432,028 | $ | 1,285,648 | (5) | % | 6 | % | |||||||||||||||||||
Loan originations held for investment | 285,322 | 198,436 | 1,001,989 | 44 | % | (72) | % | ||||||||||||||||||||||
Total loan originations (1) | $ | 1,646,499 | $ | 1,630,464 | $ | 2,287,637 | 1 | % | (28) | % | |||||||||||||||||||
Change (%) | |||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | Q1 2024 vs Q4 2023 | Q1 2024 vs Q1 2023 | |||||||||||||||||||||||||
AUM (in millions): | |||||||||||||||||||||||||||||
Loans sold | $ | 8,671 | $ | 9,336 | $ | 10,504 | (7) | % | (17) | % | |||||||||||||||||||
Loans held by LendingClub Bank | 4,754 | 4,767 | 5,499 | — | % | (14) | % | ||||||||||||||||||||||
Other | 12 | 19 | 57 | (37) | % | (79) | % | ||||||||||||||||||||||
Total | $ | 13,437 | $ | 14,122 | $ | 16,060 | (5) | % | (16) | % |
Three Months Ended March 31, 2024 | Three Months Ended December 31, 2023 | Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | |||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, restricted cash and other | $ | 1,217,395 | $ | 16,503 | 5.42 | % | $ | 1,190,539 | $ | 16,271 | 5.47 | % | $ | 1,220,677 | $ | 13,714 | 4.49 | % | |||||||||||||||||||||||||||||||||||
Securities available for sale at fair value | 1,972,561 | 35,347 | 7.17 | % | 1,197,625 | 20,920 | 6.99 | % | 362,960 | 3,900 | 4.30 | % | |||||||||||||||||||||||||||||||||||||||||
Loans held for sale at fair value | 467,275 | 14,699 | 12.58 | % | 501,850 | 15,883 | 12.66 | % | 110,580 | 5,757 | 20.83 | % | |||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment at amortized cost: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured personal loans | 3,518,101 | 116,055 | 13.20 | % | 3,890,041 | 128,190 | 13.18 | % | 4,066,713 | 133,687 | 13.15 | % | |||||||||||||||||||||||||||||||||||||||||
Commercial and other consumer loans | 1,115,931 | 16,338 | 5.86 | % | 1,126,010 | 17,033 | 6.05 | % | 1,175,504 | 16,780 | 5.71 | % | |||||||||||||||||||||||||||||||||||||||||
Loans and leases held for investment at amortized cost | 4,634,032 | 132,393 | 11.43 | % | 5,016,051 | 145,223 | 11.58 | % | 5,242,217 | 150,467 | 11.48 | % | |||||||||||||||||||||||||||||||||||||||||
Loans held for investment at fair value (2) | 256,335 | 8,409 | 13.12 | % | 306,636 | 10,022 | 13.07 | % | 882,838 | 28,575 | 12.95 | % | |||||||||||||||||||||||||||||||||||||||||
Total loans and leases held for investment (2) | 4,890,367 | 140,802 | 11.52 | % | 5,322,687 | 155,245 | 11.67 | % | 6,125,055 | 179,042 | 11.69 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 8,547,598 | 207,351 | 9.70 | % | 8,212,701 | 208,319 | 10.15 | % | 7,819,272 | 202,413 | 10.35 | % | |||||||||||||||||||||||||||||||||||||||||
Cash and due from banks and restricted cash | 58,440 | 63,181 | 71,878 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (291,168) | (334,711) | (338,359) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-interest earning assets | 631,468 | 659,995 | 666,650 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 8,946,338 | $ | 8,601,166 | $ | 8,219,441 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Checking and money market accounts | $ | 1,054,614 | $ | 9,410 | 3.59 | % | $ | 1,081,875 | $ | 9,593 | 3.52 | % | $ | 1,633,691 | $ | 7,568 | 1.88 | % | |||||||||||||||||||||||||||||||||||
Savings accounts and certificates of deposit | 6,069,942 | 74,553 | 4.94 | % | 5,720,058 | 66,660 | 4.62 | % | 4,747,478 | 45,705 | 3.90 | % | |||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits (3) | 7,124,556 | 83,963 | 4.74 | % | 6,801,933 | 76,253 | 4.45 | % | 6,381,169 | 53,273 | 3.39 | % | |||||||||||||||||||||||||||||||||||||||||
Other interest-bearing liabilities (2) | 26,571 | 500 | 7.53 | % | 24,180 | 589 | 9.74 | % | 154,045 | 2,436 | 6.33 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 7,151,127 | 84,463 | 4.75 | % | 6,826,113 | 76,842 | 4.47 | % | 6,535,214 | 55,709 | 3.46 | % | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | Three Months Ended December 31, 2023 | Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | Average Balance | Interest Income/ Expense | Average Yield/ Rate | |||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 317,430 | 314,822 | 241,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 220,544 | 238,806 | 263,868 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 7,689,101 | $ | 7,379,741 | $ | 7,041,036 | |||||||||||||||||||||||||||||||||||||||||||||||
Total equity | $ | 1,257,237 | $ | 1,221,425 | $ | 1,178,405 | |||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 8,946,338 | $ | 8,601,166 | $ | 8,219,441 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 4.95 | % | 5.68 | % | 6.90 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income and net interest margin | $ | 122,888 | 5.75 | % | $ | 131,477 | 6.40 | % | $ | 146,704 | 7.50 | % |
Three Months Ended March 31, 2024 Compared to Three Months Ended December 31, 2023 | |||||||||||||||||
Increase (Decrease) Due to Change in: | |||||||||||||||||
Average Volume(1) | Average Rate(1) | Total | |||||||||||||||
Interest-earning assets | |||||||||||||||||
Cash, cash equivalents, restricted cash and other | $ | 365 | $ | (133) | $ | 232 | |||||||||||
Securities available for sale at fair value | 13,873 | 554 | 14,427 | ||||||||||||||
Loans held for sale at fair value | (1,088) | (96) | (1,184) | ||||||||||||||
Loans and leases held for investment at amortized cost | (12,442) | (388) | (12,830) | ||||||||||||||
Loans and leases held for investment at fair value (2) | (1,650) | 37 | (1,613) | ||||||||||||||
Total decrease in interest income on interest-earning assets | $ | (942) | $ | (26) | $ | (968) | |||||||||||
Interest-bearing liabilities | |||||||||||||||||
Checking and money market accounts | $ | (315) | $ | 132 | $ | (183) | |||||||||||
Savings accounts and certificates of deposit | 3,725 | 4,168 | 7,893 | ||||||||||||||
Interest-bearing deposits | 3,410 | 4,300 | 7,710 | ||||||||||||||
Other interest-bearing liabilities (2) | 54 | (143) | (89) | ||||||||||||||
Total increase in interest expense on interest-bearing liabilities | $ | 3,464 | $ | 4,157 | $ | 7,621 | |||||||||||
Decrease in net interest income | $ | (4,406) | $ | (4,183) | $ | (8,589) |
Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023 | |||||||||||||||||
Increase (Decrease) Due to Change in: | |||||||||||||||||
Average Volume(1) | Average Rate(1) | Total | |||||||||||||||
Interest-earning assets | |||||||||||||||||
Cash, cash equivalents, restricted cash and other | $ | (37) | $ | 2,826 | $ | 2,789 | |||||||||||
Securities available for sale at fair value | 27,331 | 4,116 | 31,447 | ||||||||||||||
Loans held for sale at fair value | 12,024 | (3,082) | 8,942 | ||||||||||||||
Loans and leases held for investment at amortized cost | (19,352) | 1,278 | (18,074) | ||||||||||||||
Loans and leases held for investment at fair value (2) | (20,547) | 381 | (20,166) | ||||||||||||||
Total increase (decrease) in interest income on interest-earning assets | $ | (581) | $ | 5,519 | $ | 4,938 | |||||||||||
Interest-bearing liabilities | |||||||||||||||||
Checking and money market accounts | $ | (3,399) | $ | 5,241 | $ | 1,842 | |||||||||||
Savings accounts and certificates of deposit | 14,778 | 14,070 | 28,848 | ||||||||||||||
Interest-bearing deposits | 11,379 | 19,311 | 30,690 | ||||||||||||||
Other interest-bearing liabilities (2) | (2,327) | 391 | (1,936) | ||||||||||||||
Total increase in interest expense on interest-bearing liabilities | $ | 9,052 | $ | 19,702 | $ | 28,754 | |||||||||||
Decrease in net interest income | $ | (9,633) | $ | (14,183) | $ | (23,816) |
Three Months Ended | |||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
Credit loss expense for loans and leases held for investment | $ | 29,246 | $ | 42,403 | $ | 70,850 | |||||||||||
Credit loss expense for securities available for sale | 2,892 | — | — | ||||||||||||||
Credit loss expense for unfunded lending commitments | (211) | (496) | (266) | ||||||||||||||
Total provision for credit losses | $ | 31,927 | $ | 41,907 | $ | 70,584 | |||||||||||
Loan originations held for investment | $ | 285,322 | $ | 198,436 | $ | 1,001,989 |
Three Months Ended | |||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
Allowance for loan and lease losses, beginning of period | $ | 310,387 | $ | 350,495 | $ | 327,852 | |||||||||||
Credit loss expense for loans and leases held for investment | 29,246 | 42,403 | 70,850 | ||||||||||||||
Charge-offs | (90,342) | (90,097) | (52,563) | ||||||||||||||
Recoveries | 9,859 | 7,586 | 2,718 | ||||||||||||||
Allowance for loan and lease losses, end of period | $ | 259,150 | $ | 310,387 | $ | 348,857 | |||||||||||
Allowance for securities available for sale, beginning of period | $ | — | $ | — | $ | — | |||||||||||
Credit loss expense for securities available for sale | 2,892 | — | — | ||||||||||||||
Allowance for securities available for sale, end of period | $ | 2,892 | $ | — | $ | — | |||||||||||
Reserve for unfunded lending commitments, beginning of period | $ | 1,873 | $ | 2,369 | $ | 1,878 | |||||||||||
Credit loss expense for unfunded lending commitments | (211) | (496) | (266) | ||||||||||||||
Reserve for unfunded lending commitments, end of period (1) | $ | 1,662 | $ | 1,873 | $ | 1,612 | |||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
Gross allowance for loan and lease losses (1) | $ | 311,794 | $ | 355,773 | $ | 368,698 | |||||||||||
Recovery asset value (2) | (52,644) | (45,386) | (19,841) | ||||||||||||||
Allowance for loan and lease losses | $ | 259,150 | $ | 310,387 | $ | 348,857 |
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
Total loans and leases held for investment | 4,505,816 | 4,850,302 | $ | 5,491,938 | |||||||||||||
Allowance for loan and lease losses | $ | 259,150 | $ | 310,387 | $ | 348,857 | |||||||||||
Allowance ratio (1) | 5.8 | % | 6.4 | % | 6.4 | % | |||||||||||
Gross allowance for loan and lease losses | $ | 311,794 | $ | 355,773 | $ | 368,698 | |||||||||||
Gross allowance ratio (1) | 6.9 | % | 7.3 | % | 6.7 | % |
Three Months Ended | |||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
Average loans and leases held for investment at amortized cost | $ | 4,634,032 | $ | 5,016,051 | $ | 5,242,217 | |||||||||||
Net charge-offs | $ | 80,483 | $ | 82,511 | $ | 49,845 | |||||||||||
Net charge-off ratio | 6.9 | % | 6.6 | % | 3.8 | % |
March 31, 2024 | December 31, 2023 | ||||||||||
Nonaccrual loans and leases held for investment at amortized cost | $ | 45,307 | $ | 44,382 | |||||||
% of total loans and leases held for investment | 1.0 | % | 0.9 | % |
Three Months Ended | Change (%) | ||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | Q1 2024 vs Q4 2023 | Q1 2024 vs Q1 2023 | |||||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||
Compensation and benefits | $ | 59,554 | $ | 58,591 | $ | 73,307 | 2 | % | (19) | % | |||||||||||||||||||
Marketing | 24,136 | 23,465 | 26,880 | 3 | % | (10) | % | ||||||||||||||||||||||
Equipment and software | 12,684 | 13,190 | 13,696 | (4) | % | (7) | % | ||||||||||||||||||||||
Depreciation and amortization | 12,673 | 11,953 | 12,354 | 6 | % | 3 | % | ||||||||||||||||||||||
Professional services | 7,091 | 7,727 | 9,058 | (8) | % | (22) | % | ||||||||||||||||||||||
Occupancy | 3,861 | 3,926 | 4,310 | (2) | % | (10) | % | ||||||||||||||||||||||
Other non-interest expense | 12,234 | 11,163 | 17,703 | 10 | % | (31) | % | ||||||||||||||||||||||
Total non-interest expense | $ | 132,233 | $ | 130,015 | $ | 157,308 | 2 | % | (16) | % | |||||||||||||||||||
LendingClub Bank | LendingClub Corporation (Parent only) | Intercompany Eliminations | Consolidated Total | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||||||||||||||||||||
Marketplace revenue | $ | 38,515 | $ | 72,688 | $ | 9,828 | $ | 13,108 | $ | 7,548 | $ | 9,838 | $ | 55,891 | $ | 95,634 | |||||||||||||||||||||||||||||||
Other non-interest income | 13,695 | 19,161 | 1,946 | 2,553 | (13,732) | (18,358) | 1,909 | 3,356 | |||||||||||||||||||||||||||||||||||||||
Total non-interest income | 52,210 | 91,849 | 11,774 | 15,661 | (6,184) | (8,520) | 57,800 | 98,990 | |||||||||||||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 204,807 | 198,330 | 2,544 | 4,083 | — | — | 207,351 | 202,413 | |||||||||||||||||||||||||||||||||||||||
Interest expense | (84,123) | (53,896) | (340) | (1,813) | — | — | (84,463) | (55,709) | |||||||||||||||||||||||||||||||||||||||
Net interest income | 120,684 | 144,434 | 2,204 | 2,270 | — | — | 122,888 | 146,704 | |||||||||||||||||||||||||||||||||||||||
Total net revenue | 172,894 | 236,283 | 13,978 | 17,931 | (6,184) | (8,520) | 180,688 | 245,694 | |||||||||||||||||||||||||||||||||||||||
Provision for credit losses | (31,927) | (70,584) | — | — | — | — | (31,927) | (70,584) | |||||||||||||||||||||||||||||||||||||||
Non-interest expense | (126,496) | (148,383) | (11,921) | (17,445) | 6,184 | 8,520 | (132,233) | (157,308) | |||||||||||||||||||||||||||||||||||||||
Income before income tax benefit (expense) | 14,471 | 17,316 | 2,057 | 486 | — | — | 16,528 | 17,802 | |||||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | (3,685) | (4,256) | (593) | 120 | — | — | (4,278) | (4,136) | |||||||||||||||||||||||||||||||||||||||
Net income | $ | 10,786 | $ | 13,060 | $ | 1,464 | $ | 606 | $ | — | $ | — | $ | 12,250 | $ | 13,666 | |||||||||||||||||||||||||||||||
Capital expenditures | $ | 11,781 | $ | 16,398 | $ | — | $ | — | $ | — | $ | — | $ | 11,781 | $ | 16,398 | |||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 10,166 | $ | 6,894 | $ | 2,507 | $ | 5,460 | $ | — | $ | — | $ | 12,673 | $ | 12,354 | |||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
GAAP Net income | $ | 12,250 | $ | 10,155 | $ | 13,666 | |||||||||||
Less: Provision for credit losses | (31,927) | (41,907) | (70,584) | ||||||||||||||
Less: Income tax expense | (4,278) | (3,529) | (4,136) | ||||||||||||||
Pre-provision net revenue | $ | 48,455 | $ | 55,591 | $ | 88,386 | |||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||
Non-interest income | $ | 57,800 | $ | 54,129 | $ | 98,990 | |||||||||||
Net interest income | 122,888 | 131,477 | 146,704 | ||||||||||||||
Total net revenue | 180,688 | 185,606 | 245,694 | ||||||||||||||
Non-interest expense | (132,233) | (130,015) | (157,308) | ||||||||||||||
Pre-provision net revenue | 48,455 | 55,591 | 88,386 | ||||||||||||||
Provision for credit losses | (31,927) | (41,907) | (70,584) | ||||||||||||||
Income before income tax expense | 16,528 | 13,684 | 17,802 | ||||||||||||||
Income tax expense | (4,278) | (3,529) | (4,136) | ||||||||||||||
GAAP Net income | $ | 12,250 | $ | 10,155 | $ | 13,666 | |||||||||||
As of | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||||
GAAP common equity | $ | 1,266,286 | $ | 1,251,822 | $ | 1,190,742 | |||||||||||
Less: Goodwill | (75,717) | (75,717) | (75,717) | ||||||||||||||
Less: Intangible assets | (11,165) | (12,135) | (15,201) | ||||||||||||||
Tangible common equity | $ | 1,179,404 | $ | 1,163,970 | $ | 1,099,824 | |||||||||||
Book value per common share | |||||||||||||||||
GAAP common equity | $ | 1,266,286 | $ | 1,251,822 | $ | 1,190,742 | |||||||||||
Common shares issued and outstanding | 111,120,415 | 110,410,602 | 107,460,734 | ||||||||||||||
Book value per common share | $ | 11.40 | $ | 11.34 | $ | 11.08 | |||||||||||
Tangible book value per common share | |||||||||||||||||
Tangible common equity | $ | 1,179,404 | $ | 1,163,970 | $ | 1,099,824 | |||||||||||
Common shares issued and outstanding | 111,120,415 | 110,410,602 | 107,460,734 | ||||||||||||||
Tangible book value per common share | $ | 10.61 | $ | 10.54 | $ | 10.23 |
March 31, 2024 | December 31, 2023 | Required Minimum plus Required CCB for Non-Leverage Ratios | |||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||
LendingClub Corporation: | |||||||||||||||||||||||||||||
CET1 capital (1) | $ | 1,100.9 | 17.6 | % | $ | 1,090.2 | 17.9 | % | 7.0 | % | |||||||||||||||||||
Tier 1 capital | $ | 1,100.9 | 17.6 | % | $ | 1,090.2 | 17.9 | % | 8.5 | % | |||||||||||||||||||
Total capital | $ | 1,181.0 | 18.9 | % | $ | 1,169.2 | 19.2 | % | 10.5 | % | |||||||||||||||||||
Tier 1 leverage | $ | 1,100.9 | 12.5 | % | $ | 1,090.2 | 12.9 | % | 4.0 | % | |||||||||||||||||||
Risk-weighted assets | $ | 6,254.9 | N/A | $ | 6,104.5 | N/A | N/A | ||||||||||||||||||||||
Quarterly adjusted average assets | $ | 8,799.8 | N/A | $ | 8,476.1 | N/A | N/A | ||||||||||||||||||||||
LendingClub Bank: | |||||||||||||||||||||||||||||
CET1 capital (1) | $ | 949.4 | 15.4 | % | $ | 949.4 | 15.8 | % | 7.0 | % | |||||||||||||||||||
Tier 1 capital | $ | 949.4 | 15.4 | % | $ | 949.4 | 15.8 | % | 8.5 | % | |||||||||||||||||||
Total capital | $ | 1,028.6 | 16.6 | % | $ | 1,027.4 | 17.1 | % | 10.5 | % | |||||||||||||||||||
Tier 1 leverage | $ | 949.4 | 11.0 | % | $ | 949.4 | 11.4 | % | 4.0 | % | |||||||||||||||||||
Risk-weighted assets | $ | 6,180.2 | N/A | $ | 6,022.2 | N/A | N/A | ||||||||||||||||||||||
Quarterly adjusted average assets | $ | 8,666.7 | N/A | $ | 8,337.4 | N/A | N/A |
March 31, 2024 | December 31, 2023 | ||||||||||
Cash and cash equivalents | $ | 1,044,809 | $ | 1,230,206 | |||||||
Securities available for sale (1) | $ | 359,375 | $ | 370,466 | |||||||
Deposits | $ | 7,630,455 | $ | 7,426,445 | |||||||
Available borrowing capacity: | |||||||||||
FHLB of Des Moines borrowing capacity (2) | $ | 400,560 | $ | 661,337 | |||||||
FRB Discount Window borrowing capacity | $ | 2,490,762 | $ | 2,816,501 | |||||||
Total available borrowing capacity | $ | 2,891,322 | $ | 3,477,838 |
March 31, 2024 | December 31, 2023 | ||||||||||
Instantaneous Change in Interest Rates: | |||||||||||
+ 200 basis points | (6.3) | % | (4.8) | % | |||||||
+ 100 basis points | (2.9) | % | (2.2) | % | |||||||
– 100 basis points | 0.6 | % | — | % | |||||||
– 200 basis points | 0.6 | % | (0.4) | % |
Name and Title | Adoption Date | Expiration Date | Aggregate Number of Shares to be Sold (1) | |||||||||||||||||
January 31, 2025 | Up to |
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) |
LENDINGCLUB CORPORATION | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | May 1, 2024 | /s/ SCOTT SANBORN | ||||||||||||
Scott Sanborn | ||||||||||||||
Chief Executive Officer | ||||||||||||||
Date: | May 1, 2024 | /s/ ANDREW LABENNE | ||||||||||||
Andrew LaBenne | ||||||||||||||
Chief Financial Officer |
/s/ SCOTT SANBORN | ||
Scott Sanborn | ||
Chief Executive Officer | ||
(Principal Executive Officer) |
/s/ ANDREW LABENNE | ||
Andrew LaBenne | ||
Chief Financial Officer | ||
/s/ SCOTT SANBORN | ||||||||
Scott Sanborn | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
/s/ ANDREW LABENNE | ||||||||
Andrew LaBenne | ||||||||
Chief Financial Officer | ||||||||
Dated: | May 1, 2024 |
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
||||
---|---|---|---|---|---|---|
Assets | ||||||
Cash and due from banks | $ 15,930 | $ 14,993 | ||||
Interest-bearing deposits in banks | 1,050,349 | 1,237,511 | ||||
Total cash and cash equivalents | 1,066,279 | 1,252,504 | ||||
Restricted cash | [1] | 36,081 | 41,644 | |||
Securities available for sale at fair value ($2,284,550 and $1,663,990 at amortized cost, respectively) | 2,228,500 | 1,620,262 | ||||
Loans held for sale at fair value | 550,415 | 407,773 | ||||
Loans and leases held for investment | 4,505,816 | 4,850,302 | ||||
Allowance for loan and lease losses | (259,150) | (310,387) | ||||
Loans and leases held for investment, net | 4,246,666 | 4,539,915 | ||||
Loans held for investment at fair value | [1],[2] | 427,396 | 272,678 | |||
Property, equipment and software, net | 163,632 | 161,517 | ||||
Goodwill | 75,717 | 75,717 | ||||
Other assets | [1] | 450,142 | 455,453 | |||
Total assets | 9,244,828 | 8,827,463 | ||||
Deposits: | ||||||
Interest-bearing | 7,214,029 | 7,001,680 | ||||
Noninterest-bearing | 307,626 | 331,806 | ||||
Total deposits | 7,521,655 | 7,333,486 | ||||
Borrowings | [1],[2] | 262,550 | 19,354 | |||
Other liabilities | [1] | 194,337 | 222,801 | |||
Total liabilities | 7,978,542 | 7,575,641 | ||||
Equity | ||||||
Common stock, $0.01 par value; 180,000,000 shares authorized; 111,120,415 and 110,410,602 shares issued and outstanding, respectively | 1,111 | 1,104 | ||||
Additional paid-in capital | 1,678,928 | 1,669,828 | ||||
Accumulated deficit | (376,556) | (388,806) | ||||
Accumulated other comprehensive loss | (37,197) | (30,304) | ||||
Total equity | 1,266,286 | 1,251,822 | ||||
Total liabilities and equity | $ 9,244,828 | $ 8,827,463 | ||||
|
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities available for sale at amortized cost | $ 2,284,550 | $ 1,663,990 |
Common stock, par value ($ per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, shares issued (in shares) | 111,120,415 | 110,410,602 |
Common stock, shares outstanding (in shares) | 111,120,415 | 110,410,602 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12,250 | $ 13,666 |
Other comprehensive income (loss): | ||
Change in net unrealized gain (loss) on securities available for sale | (9,430) | 5,599 |
Other comprehensive income (loss), before tax | (9,430) | 5,599 |
Income tax effect | 2,537 | (1,520) |
Other comprehensive income (loss), net of tax | (6,893) | 4,079 |
Total comprehensive income | $ 5,357 | $ 17,745 |
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-in Capital |
Accumulated Other Comprehensive Loss |
Accumulated Deficit |
---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2022 | 106,546,995 | ||||
Beginning balance at Dec. 31, 2022 | $ 1,164,294 | $ 1,065 | $ 1,628,590 | $ (37,616) | $ (427,745) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 14,070 | 14,070 | |||
Net issuances under equity incentive plans (in shares) | 913,739 | ||||
Net issuances under equity incentive plans | (5,367) | $ 10 | (5,377) | ||
Net unrealized loss on securities available for sale, net of tax | 4,079 | 4,079 | |||
Net income | 13,666 | 13,666 | |||
Ending balance (in shares) at Mar. 31, 2023 | 107,460,734 | ||||
Ending balance at Mar. 31, 2023 | $ 1,190,742 | $ 1,075 | 1,637,283 | (33,537) | (414,079) |
Beginning balance (in shares) at Dec. 31, 2023 | 110,410,602 | 110,410,602 | |||
Beginning balance at Dec. 31, 2023 | $ 1,251,822 | $ 1,104 | 1,669,828 | (30,304) | (388,806) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 13,599 | 13,599 | |||
Net issuances under equity incentive plans (in shares) | 709,813 | ||||
Net issuances under equity incentive plans | (4,492) | $ 7 | (4,499) | ||
Net unrealized loss on securities available for sale, net of tax | (6,893) | (6,893) | |||
Net income | $ 12,250 | 12,250 | |||
Ending balance (in shares) at Mar. 31, 2024 | 111,120,415 | 111,120,415 | |||
Ending balance at Mar. 31, 2024 | $ 1,266,286 | $ 1,111 | $ 1,678,928 | $ (37,197) | $ (376,556) |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | |||||
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Cash Flows from Operating Activities: | ||||||
Net income | $ 12,250 | $ 13,666 | ||||
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | ||||||
Net fair value adjustments | 44,689 | 15,414 | ||||
Change in fair value of loan servicing assets | 19,428 | 12,576 | ||||
Gain on sales of loans | (10,909) | (14,125) | ||||
Provision for credit losses | 31,927 | 70,584 | ||||
Accretion of loan deferred fees and costs | (18,829) | (24,110) | ||||
Stock-based compensation, net | 11,544 | 11,888 | ||||
Depreciation and amortization | 12,673 | 12,354 | ||||
Other, net | (1,020) | (3,670) | ||||
Net change to loans held for sale | (928,163) | 50,738 | ||||
Net change in operating assets and liabilities: | ||||||
Other assets | 2,006 | 14,591 | ||||
Other liabilities | (22,112) | (45,414) | ||||
Net cash (used for) provided by operating activities | (846,516) | 114,492 | ||||
Cash Flows from Investing Activities: | ||||||
Net change in loans and leases | [1] | 121,263 | (285,100) | |||
Purchases of securities available for sale | 0 | (37,245) | ||||
Proceeds from maturities and paydowns of securities available for sale | 119,556 | 9,000 | ||||
Purchases of property, equipment and software, net | (11,781) | (16,398) | ||||
Other investing activities | (12,156) | (6,671) | ||||
Net cash provided by (used for) investing activities | 216,882 | (336,414) | ||||
Cash Flows from Financing Activities: | ||||||
Net change in deposits | 199,255 | 826,117 | ||||
Principal payments on borrowings | [1] | (6,981) | (38,973) | |||
Proceeds from short-term borrowings | 250,000 | 0 | ||||
Other financing activities | (4,428) | (5,367) | ||||
Net cash provided by financing activities | 437,846 | 781,777 | ||||
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (191,788) | 559,855 | ||||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 1,294,148 | 1,124,484 | ||||
Cash, Cash Equivalents and Restricted Cash, End of Period | 1,102,360 | 1,684,339 | ||||
Supplemental Cash Flow Information: | ||||||
Cash paid for interest | 90,682 | 51,608 | ||||
Cash paid for taxes | 0 | 4,526 | ||||
Cash paid for operating leases included in the measurement of lease liabilities | 3,089 | 3,156 | ||||
Supplemental Non-cash Investing Activity: | ||||||
Net securities retained from Structured Program transactions | 738,976 | 0 | ||||
Cash, Cash Equivalents, and Restricted Cash | ||||||
Cash and cash equivalents | 1,066,279 | |||||
Restricted cash | [2] | 36,081 | ||||
Total cash, cash equivalents and restricted cash | $ 1,102,360 | $ 1,684,339 | ||||
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Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation LendingClub Corporation (LendingClub) was founded in 2006 and brought a traditional credit product – the installment loan – into the digital age by leveraging technology, data science, and a unique marketplace model. In February 2021, LendingClub completed the acquisition of Radius, becoming a bank holding company and forming LC Bank as its wholly-owned subsidiary. The Company operates the vast majority of its business through LC Bank, as a lender and originator of loans and as a regulated bank in the United States. All intercompany balances and transactions have been eliminated in consolidation. 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, including 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. The Company made the following presentation changes in the condensed consolidated financial statements and accompanying notes during the first quarter of 2024: •Condensed Consolidated Balance Sheets (Balance Sheet) – “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Borrowings”; •Condensed Consolidated Statements of Income (Income Statement) – “Interest on retail and certificate loans held for investment at fair value” was combined within “Interest on loans held for investment at fair value” and “Interest on retail notes and certificates at fair value” was combined within “Other interest expense”; and •Condensed Consolidated Statements of Cash Flows – “Net decrease in retail and certificate loans” was combined within “Net change in loans and leases” and “Principal payments on retail notes and certificates” were combined within “Principal payments on borrowings.” In all instances, the respective prior period amounts have been reclassified to conform to the current period presentation. 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, 2023 (Annual Report) filed on February 16, 2024. Significant Accounting Policies The Company’s significant accounting policies are discussed in “Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies” in the Annual Report. There have been no changes to these significant accounting policies for the three months ended March 31, 2024. Adoption of New Accounting Standards The Company did not adopt new accounting standards during the three months ended March 31, 2024. New Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The new standard is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The amendments of this standard should be applied retrospectively, with early adoption permitted. The Company is evaluating the impact of this ASU but does not expect it to be material. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which improves income tax disclosure requirements, primarily through enhanced disclosures surrounding rate reconciliation and income taxes paid. The new standard is effective for annual periods beginning after December 15, 2024. The amendments of this standard should be applied prospectively, with retrospective application permitted. Early adoption is also permitted. The Company is evaluating the impact of this ASU but does not expect it to be material.
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Marketplace Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketplace Revenue | Marketplace Revenue Marketplace revenue consists of (i) origination fees, (ii) servicing fees, (iii) gain on sales of loans and (iv) net fair value adjustments, as described below. Origination Fees: Origination fees are primarily fees earned related to originating and issuing unsecured personal loans that are held for sale (HFS). Servicing Fees: The Company receives servicing fees to compensate it for servicing loans on behalf of investors, including managing payments and collections from borrowers and payments to those investors. The amount of servicing fee revenue earned is predominantly affected by the servicing rates paid by investors and the outstanding principal balance of loans serviced for investors. Servicing fee revenue related to loans sold also includes the associated change in the fair value of servicing assets. Gain on Sales of Loans: In connection with loan sales, the Company recognizes a gain or loss on the sale of loans based on the level to which the contractual servicing fee is above or below an estimated market rate of servicing. Additionally, the Company recognizes transaction costs, if any, as a loss on sale of loans. Net Fair Value Adjustments: The Company records fair value adjustments on loans that are recorded at fair value, including gains or losses from sale prices in excess of or less than the loan principal amount sold. The following table presents components of marketplace revenue for the periods presented:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table details the computation of the Company’s Basic and Diluted EPS:
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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 amortized cost, gross unrealized gains and losses, and fair value of available for sale (AFS) securities were as follows:
(1) As of March 31, 2024 and December 31, 2023, $102.6 million and $70.1 million, respectively, of the other asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company’s obligations as a “sponsor” under the U.S. Risk Retention Rules. (2) As of March 31, 2024 and December 31, 2023, includes $348.8 million and $359.5 million, respectively, of securities pledged as collateral at fair value. A summary of AFS securities with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by period of continuous unrealized loss, is as follows:
At March 31, 2024, the majority of the Company’s AFS investment portfolio was comprised of senior asset-backed securities related to Structured Program transactions and U.S. agency-backed securities. Management considers U.S. agency-backed securities to be of the highest credit quality and rating given the guarantee of principal and interest by certain U.S. government agencies. Most of the remaining securities in an unrealized loss position in the Company’s AFS investment portfolio at March 31, 2024, were rated investment grade. Substantially all of these unrealized losses in the AFS investment portfolio were caused by interest rate increases. The Company does not intend to sell the investment portfolio, and it is not more likely than not that it will be required to sell any investment before recovery of its amortized cost basis. For a description of management’s quarterly evaluation of AFS securities in an unrealized loss position, see “Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies” in our Annual Report. The following table presents the activity in the allowance for credit losses for AFS securities, by security type:
There was no activity in the allowance for credit losses for AFS securities during the first quarter of 2023. The contractual maturities of AFS securities were as follows:
(1) The weighted-average yield is computed using the average month-end amortized cost during the quarter ended March 31, 2024. There were no sales of AFS securities during the first quarters of 2024 and 2023.
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Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses | Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses LendingClub records certain loans and leases held for investment (HFI) at amortized cost. Other HFI and all HFS loans are recorded at fair value with the Company’s election of the fair value option. Accrued interest receivable is excluded from the amortized cost basis of loans and leases HFI and is reported within “ ” on the Balance Sheet. Net accrued interest receivable related to loans and leases HFI at amortized cost was $30.7 million and $32.2 million as of March 31, 2024 and December 31, 2023, respectively. Loans and Leases Held for Investment at Amortized Cost The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable:
(1) Comprised of sales-type leases for equipment. See “Note 17. Leases” for additional information. (2) As of March 31, 2024 and December 31, 2023, the Company had $3.0 billion and $3.5 billion in loans pledged as collateral under the Federal Reserve Bank (FRB) Discount Window, respectively. In addition, as of March 31, 2024 and December 31, 2023, the Company had $479.6 million and $479.0 million in loans pledged to the Federal Home Loan Bank (FHLB) of Des Moines, respectively. The following table presents the components of the allowance for loan and lease losses:
(1) Represents the allowance for future estimated net charge-offs on existing portfolio balances. (2) Represents the negative allowance for expected recoveries of amounts previously charged-off.
(1) Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost. The activity in the allowance for credit losses (ACL) by portfolio segment was as follows:
(1) Unsecured personal loans are charged-off when a borrower is (i) contractually 120 days past due or (ii) two payments past due and has filed for bankruptcy or is deceased. (2) Relates to $72.1 million and $117.2 million of unfunded commitments, associated primarily with the commercial loan portfolio, as of March 31, 2024 and 2023, respectively. The following table presents charge-offs by origination year for the first quarter of 2024:
Consumer Lending Credit Quality Indicators The Company evaluates the credit quality of its consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is based upon borrower payment activity relative to the contractual terms of the loan. The following tables present the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status and origination year:
(1) Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of March 31, 2024, the basis adjustment totaled $209 thousand and represents an increase to the amortized cost of the hedged loans. See “Note 8. Derivative Instruments and Hedging Activities” for additional information.
(1) Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of December 31, 2023, the basis adjustment totaled $8.9 million and represents an increase to the amortized cost of the hedged loans. See “Note 8. Derivative Instruments and Hedging Activities” for additional information. Commercial Lending Credit Quality Indicators The Company evaluates the credit quality of its commercial loan portfolio based on regulatory risk ratings. The Company categorizes loans and leases into risk ratings based on relevant information about the quality and realizable value of collateral, if any, and the ability of borrowers to service their debts, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases based on their associated credit risk and performs this analysis whenever credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans. Risk rating classifications consist of the following: Pass – Loans and leases that the Company believes will fully repay in accordance with the contractual loan terms. Special Mention – Loans and leases with a potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Company’s credit position at some future date. Substandard – Loans and leases that are inadequately protected by the current sound worth and paying capacity of the obligator or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the repayment and liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Normal payment from the borrower is in jeopardy, although loss of principal, while still possible, is not imminent. Doubtful – Loans and leases that have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. Loss – Loans and leases that are considered uncollectible and of little value. The following tables present the classes of financing receivables within the commercial portfolio segment by risk rating and origination year:
(1) Represents loan balances guaranteed by the Small Business Association (SBA).
(1) Represents loan balances guaranteed by the SBA. The following tables present an analysis of the past due loans and leases HFI at amortized cost within the commercial portfolio segment:
(1) Represents loan balances guaranteed by the SBA. Loan Modifications The Company has loan modification programs to assist borrowers experiencing financial difficulty and to mitigate losses and maximize collections for loans serviced by the Company. The table below presents the amortized cost of loans that were modified during the periods presented, by modification type:
During the third quarter of 2023, the Company expanded its digital channels to enable borrowers experiencing financial difficulty to qualify for a short-term payment reduction modification program. Under this program, borrowers may receive a temporary payment reduction for three months. If the borrower meets the temporary payment reduction requirements during the first three-month term, they may qualify for a payment reduction for an additional three months. Receiving an additional three months of payment reduction is considered an other-than-insignificant payment delay and becomes a short-term payment reduction modification. The short-term payment reduction modification results in a term extension of to eight months compared to the original maturity date of the loan and does not include any principal or interest forgiveness. At the time of receiving a payment reduction, a delinquent loan resets to current status. However, if a borrower fails to comply with the modified terms, the delinquency status returns to the original contractual terms of the loan. Borrowers who were in their first three months of temporary payment reduction had a total of $20.8 million of loan balances at amortized cost outstanding as of March 31, 2024, and may subsequently be eligible for a short-term payment reduction modification. Permanent loan modifications include both a reduction in contractual interest rates and an extension to the contractual maturity date of up to twelve months and do not include any principal forgiveness. To qualify for this modification, borrowers must meet the Company’s debt-to-income ratio requirements. During the first quarters of 2024 and 2023, the weighted-average interest rate reduction under this program was approximately 7.7% and 8.0%, respectively, and the weighted-average maturity date extension was approximately twelve months for both periods. Debt settlement modifications, which include engaging with third-party debt settlement companies, reduce the principal and interest amounts owed by borrowers. The Company typically charges-off such loans within a few months following the modification, as payments under the modified agreement are less than the original contractual amounts. The following table presents the delinquency status of the amortized cost of loan modifications as of the periods presented below that were modified during the preceding twelve months:
(1) Reflects the delinquency status of the amortized cost of loan modifications that were modified during the preceding three months, as the associated ASU 2022-02 was adopted prospectively on January 1, 2023. In the event of a borrower defaulting at 120 days past due, the modified loan is charged-off at the time of default. The table below presents the total amount of charge-offs during the period for loan modifications that were entered into within the preceding twelve months of charge-off:
(1) Reflects total amount of charge-offs during the period for loan modifications that were entered into within the preceding three months of charge-off, as the associated ASU 2022-02 was adopted prospectively on January 1, 2023. Nonaccrual Assets Nonaccrual loans and leases are those for which accrual of interest has been suspended. Loans and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection does not warrant further accrual, and are charged-off no later than 120 days past due. The following table presents nonaccrual loans and leases:
(1) Subset of total nonaccrual loans and leases. (2) Includes $15.0 million and $10.4 million in loan balances guaranteed by the SBA as of March 31, 2024 and December 31, 2023, respectively.
(1) Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI at amortized cost. Collateral-Dependent Assets Certain loans on nonaccrual status may be considered collateral-dependent loans if the borrower is experiencing financial difficulty and repayment of the loan is expected to be substantially through sale or operation of the collateral. Expected credit losses for the Company’s collateral-dependent loans are calculated as the difference between the amortized cost basis and the fair value of the underlying collateral less costs to sell, if applicable.
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Securitizations and Variable Interest Entities |
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Securitizations and Variable Interest Entities | Securitizations and Variable Interest Entities VIE Assets and Liabilities The following table presents the classifications of assets and liabilities on the Company’s Balance Sheet for its transactions with consolidated and unconsolidated VIEs. The Company’s transactions with VIEs include Structured Program transactions. The Company has also various forms of involvement with VIEs, including servicing loans and holding senior asset-backed securities or subordinated interests in the VIEs. Additionally, the carrying amount of assets and liabilities in the table below exclude intercompany balances that were eliminated in consolidation.
(1) Prior period amounts have been reclassified to conform to the current period presentation. Maximum loss exposure 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. Unconsolidated VIEs The following table summarizes activity related to unconsolidated VIEs where the transfers were accounted for as a sale on the Company’s financial statements:
(1) Consists primarily of servicing assets recognized at the time of sale, less any transaction costs, and excludes origination fees and fair value adjustments recognized prior to the sale. There was no activity related to unconsolidated VIEs during the first quarter of 2023. Beginning in the second quarter of 2023, the Company resumed its Structured Program transactions with its newly launched Structured Certificates, where it retains the senior securities at a fixed rate, in addition to the amount required pursuant to the U.S. Risk Retention Rules, and sells the residual certificates. See “Note 4. Securities Available for Sale” for the securities retained in the Company’s investment portfolio related to such transactions. There is no direct recourse to the Company’s assets, and holders of the securities can look only to those assets of the VIEs that issued their securities for payment. The residual certificates are subject principally to the credit and prepayment risk stemming from the underlying unsecured personal loans. As of March 31, 2024, the aggregate unpaid principal balance held by unconsolidated VIEs was $2.2 billion, of which $14.6 million was attributable to off-balance sheet loans that were 30 days or more past due. As of December 31, 2023, the aggregate unpaid principal balance held by unconsolidated VIEs was $1.6 billion, of which $9.5 million was attributable to off-balance sheet loans that were 30 days or more past due. For such loans, 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.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements 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 1. 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. Recurring Fair Value Measurements The following tables present, by level within the fair value hierarchy, the Company’s assets and liabilities measured at fair value on a recurring basis:
(1) Prior period amounts have been reclassified to conform to the current period presentation. Financial instruments are categorized in the valuation hierarchy based on the significance of observable or unobservable factors in the overall fair value measurement. For the financial instruments listed in the tables above that 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 (DCF) 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 the Company’s best estimates of the assumptions a market participant would use to calculate fair value. The Company did not transfer any assets or liabilities in or out of Level 3 during the first quarters 2024 or 2023. The following significant unobservable inputs were used in the fair value measurement of the Company’s Level 3 assets: •Discount rate – The weighted-average rate at which the expected cash flows are discounted to arrive at the net present value of the loan. The discount rate is primarily determined based on marketplace investor return expectations. •Annualized net charge-off rate – The annualized rate of average charge-offs, net of recoveries, expressed as a percentage of the average principal balance of loan pools with similar risk characteristics. The calculation of this annualized rate also incorporates a qualitative estimate of credit losses based on the Company’s current macroeconomic outlook. •Annualized prepayment rate – The annualized rate of prepayments expressed as a percentage of the average principal balance of loan pools with similar risk characteristics. An increase in each of the inputs above, in isolation, would result in a decrease in the fair value measurement. The sensitivity calculations are hypothetical and should not be considered to be predictive of future performance. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Changes in one factor may lead to changes in other factors, which could impact the hypothetical results. Loans Held for Sale at Fair Value Significant Unobservable Inputs The following significant unobservable inputs were used in the fair value measurement of loans HFS:
(1) The weighted-average rate is calculated using the original principal balance of each loan pool. Fair Value Sensitivity The sensitivity of loans HFS at fair value to adverse changes in key assumptions was as follows:
Fair Value Reconciliation The following table presents loans HFS at fair value activity:
The following table summarizes the aggregate fair value of the Company’s HFS loans, as well as the amount that was 90 days or more past due:
Loans Held for Investment at Fair Value The Company does not assume principal or interest rate risk on loans that were funded by its member payment- dependent self-directed retail program (Retail Program) because loan balances, interest rates and maturities are matched and offset by an equal balance of notes with the exact same interest rates and maturities. As such, the tables presented below exclude retail and certificate loans held for investment at fair value, which were $7.0 million and $10.5 million at March 31, 2024 and December 31, 2023, respectively. Significant Unobservable Inputs The following significant unobservable inputs were used in the fair value measurement of loans HFI:
(1) The weighted-average rate is calculated using the original principal balance of each the loan pool. Fair Value Sensitivity The sensitivity of loans HFI at fair value to adverse changes in key assumptions was as follows:
Fair Value Reconciliation The following table presents loans HFI at fair value activity:
The following table summarizes the aggregate fair value of the Company’s HFI loans held at fair value, as well as the amount that was 90 days or more past due:
Asset-Backed Securities Related to Structured Program Transactions Senior Asset-Backed Securities Related to Structured Program Transactions Significant Unobservable Inputs Discount rate, which includes credit spreads, was the significant unobservable input used to measure the fair value of this Level 3 asset. The minimum, maximum and weighted-average discount rate assumptions were 7.1% and 7.0% as of March 31, 2024 and December 31, 2023, respectively. Fair Value Sensitivity The sensitivity in the fair value of senior asset-backed securities related to Structured Program transactions to adverse changes in key assumptions was as follows:
Fair Value Reconciliation The following table presents senior asset-backed securities related to Structured Program transactions activity:
There was no activity associated with senior asset-backed securities related to Structured Program transactions during the first quarter of 2023 as this consists of the newly launched Structured Certificates that the Company began entering into in the second quarter of 2023. Other Asset-Backed Securities Related to Structured Program Transactions Significant Unobservable Inputs The following significant unobservable inputs were used in the fair value measurement of other asset-backed securities related to Structured Program transactions:
(1) The weighted-average rate is calculated using the original principal balance of each security. Fair Value Sensitivity The sensitivity in the fair value of other asset-backed securities related to Structured Program transactions to adverse changes in key assumptions was as follows:
Fair Value Reconciliation The following table presents other asset-backed securities related to Structured Program transactions activity:
Servicing Assets Significant Unobservable Inputs The following significant unobservable inputs were used in the fair value measurement for servicing assets related to loans sold to investors:
(1) The weighted-average rate is calculated using the original principal balance of each loan pool. (2) The fees a willing market participant would require for the servicing of loans with similar characteristics as those in the Company’s serviced portfolio. Fair Value Sensitivity The sensitivity of the fair value of servicing assets to adverse changes in key assumptions was as follows:
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:
Fair Value Reconciliation The following table presents servicing assets activity:
(1) Represents the servicing assets recorded when the loans are sold. Included in “Gains on sales of loans” within “Marketplace revenue” on the Income Statement. Financial Instruments Not Recorded at Fair Value The following tables present the carrying amount and estimated fair values, by level within the fair value hierarchy, of the Company’s assets, and liabilities that are not recorded at fair value on a recurring basis:
(1) Excludes deposit liabilities with no defined or contractual maturities.
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Credit Derivatives Beginning in the second quarter of 2023, the Company entered into credit support agreements related to loan sales, whereby it is obligated to make payments to a limited number of strategic investors approximately 18 months after sale if credit losses exceed certain initial agreed-upon thresholds, subject to a maximum dollar amount. Accordingly, these are accounted for as credit derivative liabilities, measured at fair value, and recorded in “Other liabilities” on the Balance Sheet. The initial fair value of the derivative liabilities is recorded in “Gain on sales of loans” with changes in the fair value recorded in “Net fair value adjustments,” both within “Marketplace revenue” on the Income Statement. The table below presents the notional and gross fair value amounts of the Company’s credit derivatives:
(1) Represents the maximum dollar exposure. (2) The fair value is based on the combined impact of both the quantitative and qualitative credit loss forecast. For the first quarter of 2024, the Company recognized a loss of $1.4 million in earnings. Hedging The Company is exposed to changes in the fair value of its fixed-rate loans due to changes in benchmark interest rates. Beginning in the third quarter of 2023, the Company entered into interest rate swaps to manage its exposure to changes in fair value of these loans attributable to changes in the Secured Overnight Financing Rate (SOFR). The interest rate swaps qualify as fair value hedges and involve the payment of fixed-rate amounts to a counterparty in exchange for the receipt of variable-rate payments over the life of the agreements, ranging from approximately to three years. The table below presents the notional and gross fair value amounts of the Company’s derivatives used for hedging:
(1) Recorded in “Other liabilities” on the Balance Sheet. The following table summarizes the gains (losses) recognized on the Company’s fair value hedges:
(1) Includes accrued interest receivable and accrued interest payable. (2) Recorded in “Interest and fees on loans held for investment” on the Income Statement. The following table presents the cumulative basis adjustments for fair value hedges:
(1) Represents the amortized cost of the total closed portfolio of loans designated in a portfolio method hedge relationship in which the hedged item is a stated layer that is expected to be remaining at the end of the hedging relationship. At March 31, 2024 and December 31, 2023, the amortized cost of loans designated as the hedged item in the portfolio layer hedging relationship was $1.5 billion.
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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:
(1) Includes $58.3 million and $66.9 million of development in progress for internally-developed software and $4.3 million and $4.6 million of development in progress to customize purchased software as of March 31, 2024 and December 31, 2023, respectively. Depreciation and amortization expense on property, equipment and software was $11.7 million and $11.2 million for the first quarters of 2024 and 2023, respectively.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Company’s goodwill balance was $75.7 million as of both March 31, 2024 and December 31, 2023. The Company did not record any goodwill impairment expense for the first quarters of 2024 and 2023. Goodwill is not amortized, but is subject to annual impairment tests that are performed in the fourth quarter of each calendar year. For additional detail, see “Part II – Item 8. Financial Statements and Supplementary Data – Note 1. Summary of Significant Accounting Policies” in the Annual Report. Intangible Assets Intangible assets consist of customer relationships. Intangible assets, net of accumulated amortization, are included in “Other assets” on the Balance Sheet. The gross and net carrying values and accumulated amortization were as follows:
The customer relationship intangible assets are amortized on an accelerated basis from to fourteen years. Amortization expense associated with intangible assets for the first quarters of 2024 and 2023 was $1.0 million and $1.1 million, respectively. There was no impairment loss for the first quarters of 2024 and 2023. The expected future amortization expense for intangible assets as of March 31, 2024, is as follows:
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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) See “Note 16. Income Taxes” for additional detail. (2) Loans underlying servicing assets had a total outstanding principal balance of $8.8 billion and $9.5 billion as of March 31, 2024 and December 31, 2023, respectively. (3) See “Note 10. Goodwill and Intangible Assets” for additional detail.
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Deposits |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits Deposits consist of the following:
Total certificates of deposit at March 31, 2024 are scheduled to mature as follows:
The following table presents the amount of certificates of deposit with denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand, segregated by time remaining until maturity, as of March 31, 2024:
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Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings Borrowing Capacity The following table summarizes the Company’s available borrowing capacity and the related pledged collateral:
(1) The reduction in available borrowing capacity as of March 31, 2024 compared to December 31, 2023 was primarily due to a $250 million short-term borrowing from the FHLB of Des Moines. Short-term Borrowings In March 2024, the Company borrowed $250 million from the FHLB of Des Moines, which it repaid in full the following month. Long-term Debt The following table summarizes the components of the Company’s long-term debt, as of the dates indicated:
(1) Collateralized by SBA Paycheck Protection Program (PPP) loans originated by the Company. The maturity date of the PPPLF borrowings matches the maturity date of the pledged SBA PPP loans. When loans are forgiven by the SBA, the corresponding PPPLF advance is paid by the Company. (2) The Company does not assume principal or interest rate risk on loans that were funded by Retail Notes because loan balances, interest rates and maturities were matched and offset by an equal balance of notes with the exact same interest rates and maturities. As of December 31, 2020, LendingClub ceased offering and selling Retail Notes. The total balance of outstanding Retail Notes will continue to decline as underlying borrower payments are made. (3) Consists of certificate participations and securities of certain consolidated VIEs held by third-party investors and secured by “Restricted cash” of $3.1 million as of March 31, 2024 and by “Loans held for investment at fair value” of $0.5 million and “Restricted cash” of $3.4 million as of December 31, 2023.
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Other Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other Liabilities Other liabilities consist of the following:
(1) Represents principal and interest on loans collected by the Company and pending disbursement to investors.
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Employee Incentive Plans |
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Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Incentive Plans | Employee Incentive Plans The Company’s equity incentive plans provide for granting awards, including restricted stock units (RSUs), performance-based restricted stock units (PBRSUs), cash awards and stock options to employees, officers and directors. Stock-based Compensation Stock-based compensation expense, included in “Compensation and benefits” expense on the Income Statement, was as follows for the periods presented:
Restricted Stock Units The following table summarizes the Company’s RSU activity:
During the first quarter of 2024, the Company granted 3,541,491 RSUs with an aggregate fair value of $30.3 million. As of March 31, 2024, there was $76.7 million of unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted-average period of approximately 2.1 years, subject to any forfeitures. Performance-based Restricted Stock Units The Company’s outstanding PBRSU awards have a market-based metric and/or a performance-based metric, each with a three-year performance period, following which any earned portion is immediately vested. With respect to PBRSU awards with a market-based metric, the compensation expense of the award is fixed at the time of grant (incorporating the probability of achieving the market-based metric) and expensed over the performance period. With respect to PBRSU awards with a performance-based metric, the compensation expense of the award is set at the time of grant (assuming a target level of achievement), subsequently adjusted for actual performance during the performance period and expensed over the performance/vesting period. The following table summarizes the Company’s PBRSU activity:
During the first quarter of 2024, the Company granted 462,060 PBRSUs with an aggregate fair value of $4.0 million. As of March 31, 2024, there was $8.3 million of unrecognized compensation cost related to unvested PBRSUs, which is expected to be recognized over a weighted-average period of approximately 1.8 years, subject to any forfeitures.
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Income Taxes |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes For the first quarter of 2024, the Company recorded an income tax expense of $4.3 million, representing an effective tax rate of 25.9%. For the first quarter of 2023, the Company recorded an income tax expense of $4.1 million, representing an effective tax rate of 23.2%. The effective tax rate differs from the statutory rate due to the favorable impact of recurring items such as tax credits, the unfavorable impact of the non-deductible portions of executive compensation, and the unfavorable impact of stock-based compensation. The following table summarizes the Company’s net deferred tax assets:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessor Arrangements The Company has lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the first quarters of 2024 and 2023, interest earned on Equipment Finance was $1.7 million and $2.9 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. The components of Equipment Finance assets are as follows:
Future minimum lease payments based on maturity of the Company’s lessor arrangements as of March 31, 2024 were as follows:
Lessee Arrangements The Company has various operating leases, including with respect to its headquarters in San Francisco, California, and office spaces in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of March 31, 2024, the lease agreements have remaining lease terms ranging from approximately two years to five years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of March 31, 2024, the Company pledged $0.4 million of cash and $1.1 million in letters of credit as security deposits in connection with its lease agreements. Balance sheet information related to leases was as follows:
Net lease costs were $2.6 million and $2.9 million during the first quarters of 2024 and 2023, respectively. Such costs are recorded within “Occupancy” expense on the Income Statement. Supplemental cash flow information related to the Company’s operating leases was as follows:
(1) Amounts include noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases as of March 31, 2024 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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Leases | Leases Lessor Arrangements The Company has lessor arrangements which consist of sales-type leases for equipment (Equipment Finance). Such arrangements may include options to renew or to purchase the leased equipment at the end of the lease term. For the first quarters of 2024 and 2023, interest earned on Equipment Finance was $1.7 million and $2.9 million, respectively, and is included in “Interest and fees on loans and leases held for investment” on the Income Statement. The components of Equipment Finance assets are as follows:
Future minimum lease payments based on maturity of the Company’s lessor arrangements as of March 31, 2024 were as follows:
Lessee Arrangements The Company has various operating leases, including with respect to its headquarters in San Francisco, California, and office spaces in the Salt Lake City, Utah, and Boston, Massachusetts areas. As of March 31, 2024, the lease agreements have remaining lease terms ranging from approximately two years to five years. Some of the lease agreements include options to extend the lease term for up to an additional fifteen years. As of March 31, 2024, the Company pledged $0.4 million of cash and $1.1 million in letters of credit as security deposits in connection with its lease agreements. Balance sheet information related to leases was as follows:
Net lease costs were $2.6 million and $2.9 million during the first quarters of 2024 and 2023, respectively. Such costs are recorded within “Occupancy” expense on the Income Statement. Supplemental cash flow information related to the Company’s operating leases was as follows:
(1) Amounts include noncash remeasurements of the operating lease ROU asset. The Company’s future minimum undiscounted lease payments under operating leases as of March 31, 2024 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 |
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Mar. 31, 2024 | |
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 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 loan sales, the Company agreed to repurchase loans if representations and warranties made with respect to such loans were breached under certain circumstances. The Company believes such provisions are customary and consistent with institutional loan and securitization market standards. Unfunded Loan Commitments As of March 31, 2024 and December 31, 2023, the contractual amount of unfunded loan commitments was $72.1 million and $78.1 million, respectively. See “Note 5. Loans and Leases Held for Investment at Amortized Cost, Net of Allowance For Loan and Lease Losses” for additional detail related to the reserve for unfunded lending commitments. Legal The Company is subject to various claims brought in a litigation or regulatory context. These matters include lawsuits, including but not limited to, putative class action lawsuits and routine litigation matters arising in the ordinary course of business. In addition, the Company, and its business practices and compliance with licensing and other regulatory requirements, is subject to periodic exams, investigations, inquiries or requests, enforcement actions and other proceedings from federal and state regulatory and/or law enforcement agencies, including from the federal banking regulators that directly regulate the Company and/or LC Bank. 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. Regulatory Examinations and Actions Relating to the Company’s Business Practices, Licensing and Compliance with Applicable Laws The Company is and has been subject to periodic inquiries, exams 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 operating in compliance with applicable laws, including the requirements of its licenses and the regulatory framework applicable to its business. In the past, the Company has successfully resolved such matters 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. However, no assurances can be given as to the timing, outcome or consequences of these matters or other similar matters if or as they arise.
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Regulatory Requirements |
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Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Requirements | Regulatory Requirements LendingClub and LC Bank are subject to comprehensive supervision, examination and enforcement, and regulation by the FRB and the Office of the Comptroller of the Currency (OCC), including generally similar capital adequacy requirements adopted by the FRB and the OCC, respectively. These requirements establish required minimum ratios for Common Equity Tier 1 (CET1) risk-based capital, Tier 1 risk-based capital, total risk-based capital and a Tier 1 leverage ratio; set risk-weighting for assets and certain other items for purposes of the risk-based capital ratios; and define what qualifies as capital for purposes of meeting the capital requirements. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company. The minimum capital requirements under the Basel Committee on Banking Supervision standardized approach for U.S. banking organizations (Basel III) capital framework are: a CET1 risk-based capital ratio of 4.5%, a Tier 1 risk-based capital ratio of 6.0%, a total risk-based capital ratio of 8.0%, and a Tier 1 leverage ratio of 4.0%. Additionally, a Capital Conservation Buffer (CCB) of 2.5% must be maintained above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases, and certain discretionary bonus payments. In addition to these guidelines, the regulators assess any particular institution’s capital adequacy based on numerous factors and may require a particular banking organization to maintain capital at levels higher than the generally applicable minimums prescribed under the Basel III capital framework. The following table summarizes the Company’s and LC Bank’s regulatory capital amounts (in millions) and ratios:
N/A – Not applicable (1) Consists of common stockholders’ equity as defined under U.S. GAAP and certain adjustments made in accordance with regulatory capital guidelines, including the addition of the CECL transitional benefit and deductions for goodwill and other intangible assets. In response to the COVID-19 pandemic, the FRB, OCC, and FDIC adopted a final rule related to the regulatory capital treatment of the allowance for credit losses under CECL. As permitted by the rule, the Company elected to delay the estimated impact of CECL on regulatory capital resulting in a CET1 capital benefit of $35 million at December 31, 2021. This benefit is phased out over a three-year transition period that commenced on January 1, 2022 at a rate of 25% each year through January 1, 2025. The Federal Deposit Insurance Act provides for a system of “prompt corrective action” (PCA). The PCA regime provides for capitalization categories ranging from “well-capitalized” to “critically undercapitalized.” An institution’s PCA category is determined primarily by its regulatory capital ratios. The PCA requires remedial actions and imposes limitations that become increasingly stringent as its PCA capitalization category declines, including the ability to accept and/or rollover brokered deposits. At March 31, 2024 and December 31, 2023, the Company’s and LC Bank’s regulatory capital ratios exceeded the thresholds required to be regarded as well-capitalized institutions and met all capital adequacy requirements to which they are subject. There have been no events or conditions since March 31, 2024 that management believes would change the Company’s categorization. Federal laws and regulations limit the dividends that a national bank may pay. Dividends that may be paid by a national bank without the express approval of the OCC are limited to that bank’s retained net profits for the preceding two calendar years plus retained net profits up to the date of any dividend declaration in the current calendar year. Retained net profits, as defined by the OCC, consist of net income less dividends declared during the period. No dividends were declared by LC Bank during the first quarter of 2024 or during 2023. Federal law restricts the amount and the terms of both credit and non-credit transactions between a bank and its nonbank affiliates. These covered transactions may not exceed 10% of the bank’s capital and surplus (which for this purpose represents tier 1 and tier 2 capital, as calculated under the risk-based capital rules, plus the balance of the ACL excluded from tier 2 capital) with any single nonbank affiliate and 20% of the bank’s capital and surplus with all its nonbank affiliates. Covered transactions that are extensions of credit may require collateral to be pledged to provide added security to the bank.
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Segment Reporting |
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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 Chief Executive Officer and Chief Financial Officer to allocate resources and evaluate financial performance. This information is reviewed according to the legal organizational structure of the Company’s operations with products and services presented separately for the parent bank holding company and its wholly-owned subsidiary, LC Bank. Income taxes are recorded on a separate entity basis whereby each operating segment determines income tax expense or benefit as if it filed a separate tax return. All of the Company’s revenue is generated in the United States. The Company has experienced reductions in marketplace investor demand in connection with increases in interest rates and volatility in the macro economy. However, no individual borrower or marketplace investor accounted for 10% or more of total net revenue during the first quarter of 2024. During the first quarter of 2023, one marketplace bank investor accounted for 15% of total net revenue. No other individual borrower or marketplace investor accounted for 10% or more of total net revenue for any of the periods presented. LendingClub Bank The LC Bank operating segment represents the national bank legal entity and reflects post-Acquisition operating activities. This segment provides a full complement of financial products and solutions, including loans, leases and deposits. It originates loans to individuals and businesses, retains loans for investment, sells loans to investors and manages relationships with deposit holders. LendingClub Corporation (Parent Only) The LendingClub Corporation (Parent only) operating segment represents the holding company legal entity and predominately reflects the operations of the Company prior to the Acquisition. This activity includes, but is not limited to, servicing fee revenue for loans serviced prior to the Acquisition, and interest income and interest expense related to the Retail Program and Structured Program transactions entered into prior to the Acquisition. Financial information for the segments is presented in the following tables:
(1) Prior period amounts have been reclassified to conform to the current period presentation.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net income | $ 12,250 | $ 13,666 |
Insider Trading Arrangements |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024
shares
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Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Adopted | false | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Terminated | false | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Terminated | false | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Erin Selleck [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Material Terms of Trading Arrangement | The following table shows the trading arrangements intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), adopted by the Company’s directors and executive officers during the first quarter of 2024:
(1) The aggregate number of shares to be sold pursuant to this trading arrangement includes shares from outstanding restricted stock units that are subject to applicable service-based vesting conditions.
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Name | Erin Selleck | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | Director | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | March 1, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 336 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 8,869 |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Consolidation | All intercompany balances and transactions have been eliminated in consolidation. |
Basis of Accounting | 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, including normal recurring adjustments, necessary for the fair statement of the results and financial position for the periods presented. |
Use of Estimates | 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. |
Reclassifications | The Company made the following presentation changes in the condensed consolidated financial statements and accompanying notes during the first quarter of 2024: •Condensed Consolidated Balance Sheets (Balance Sheet) – “Retail and certificate loans held for investment at fair value” were combined within “Loans held for investment at fair value” and “Retail notes and certificates at fair value” were combined within “Borrowings”; •Condensed Consolidated Statements of Income (Income Statement) – “Interest on retail and certificate loans held for investment at fair value” was combined within “Interest on loans held for investment at fair value” and “Interest on retail notes and certificates at fair value” was combined within “Other interest expense”; and •Condensed Consolidated Statements of Cash Flows – “Net decrease in retail and certificate loans” was combined within “Net change in loans and leases” and “Principal payments on retail notes and certificates” were combined within “Principal payments on borrowings.” In all instances, the respective prior period amounts have been reclassified to conform to the current period presentation.
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Adoption of New Accounting Standards | Adoption of New Accounting Standards The Company did not adopt new accounting standards during the three months ended March 31, 2024. New Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The new standard is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The amendments of this standard should be applied retrospectively, with early adoption permitted. The Company is evaluating the impact of this ASU but does not expect it to be material. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which improves income tax disclosure requirements, primarily through enhanced disclosures surrounding rate reconciliation and income taxes paid. The new standard is effective for annual periods beginning after December 15, 2024. The amendments of this standard should be applied prospectively, with retrospective application permitted. Early adoption is also permitted. The Company is evaluating the impact of this ASU but does not expect it to be material.
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Revenue Recognition | Marketplace revenue consists of (i) origination fees, (ii) servicing fees, (iii) gain on sales of loans and (iv) net fair value adjustments, as described below. Origination Fees: Origination fees are primarily fees earned related to originating and issuing unsecured personal loans that are held for sale (HFS). Servicing Fees: The Company receives servicing fees to compensate it for servicing loans on behalf of investors, including managing payments and collections from borrowers and payments to those investors. The amount of servicing fee revenue earned is predominantly affected by the servicing rates paid by investors and the outstanding principal balance of loans serviced for investors. Servicing fee revenue related to loans sold also includes the associated change in the fair value of servicing assets. Gain on Sales of Loans: In connection with loan sales, the Company recognizes a gain or loss on the sale of loans based on the level to which the contractual servicing fee is above or below an estimated market rate of servicing. Additionally, the Company recognizes transaction costs, if any, as a loss on sale of loans. Net Fair Value Adjustments: The Company records fair value adjustments on loans that are recorded at fair value, including gains or losses from sale prices in excess of or less than the loan principal amount sold.
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Marketplace Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Marketplace Revenue | The following table presents components of marketplace revenue for the periods presented:
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Earnings Per Share (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | The following table details the computation of the Company’s Basic and Diluted EPS:
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Securities Available for Sale (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | The amortized cost, gross unrealized gains and losses, and fair value of available for sale (AFS) securities were as follows:
(1) As of March 31, 2024 and December 31, 2023, $102.6 million and $70.1 million, respectively, of the other asset-backed securities related to Structured Program transactions at fair value are subject to restrictions on transfer pursuant to the Company’s obligations as a “sponsor” under the U.S. Risk Retention Rules. (2) As of March 31, 2024 and December 31, 2023, includes $348.8 million and $359.5 million, respectively, of securities pledged as collateral at fair value.
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Schedule of Available-for-sale Securities, Continuous Unrealized Loss Position | A summary of AFS securities with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by period of continuous unrealized loss, is as follows:
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Schedule of Activity in Credit Valuation Allowance for AFS Securities | The following table presents the activity in the allowance for credit losses for AFS securities, by security type:
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Schedule of Available-for-sale Securities by Contractual Maturity | The contractual maturities of AFS securities were as follows:
(1) The weighted-average yield is computed using the average month-end amortized cost during the quarter ended March 31, 2024.
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Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Portfolio Segment by Class of Financing Receivable | The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable:
(1) Comprised of sales-type leases for equipment. See “Note 17. Leases” for additional information. (2) As of March 31, 2024 and December 31, 2023, the Company had $3.0 billion and $3.5 billion in loans pledged as collateral under the Federal Reserve Bank (FRB) Discount Window, respectively. In addition, as of March 31, 2024 and December 31, 2023, the Company had $479.6 million and $479.0 million in loans pledged to the Federal Home Loan Bank (FHLB) of Des Moines, respectively. The following table presents the components of the allowance for loan and lease losses:
(1) Represents the allowance for future estimated net charge-offs on existing portfolio balances. (2) Represents the negative allowance for expected recoveries of amounts previously charged-off.
(1) Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost. The following table summarizes the aggregate fair value of the Company’s HFS loans, as well as the amount that was 90 days or more past due:
The following table summarizes the aggregate fair value of the Company’s HFI loans held at fair value, as well as the amount that was 90 days or more past due:
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Schedule of Allowance for Credit Loss | The activity in the allowance for credit losses (ACL) by portfolio segment was as follows:
(1) Unsecured personal loans are charged-off when a borrower is (i) contractually 120 days past due or (ii) two payments past due and has filed for bankruptcy or is deceased. (2) Relates to $72.1 million and $117.2 million of unfunded commitments, associated primarily with the commercial loan portfolio, as of March 31, 2024 and 2023, respectively.
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Schedule of Financing Receivable Gross Charge-Offs and Credit Quality Indicators | The following table presents charge-offs by origination year for the first quarter of 2024:
(1) Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of March 31, 2024, the basis adjustment totaled $209 thousand and represents an increase to the amortized cost of the hedged loans. See “Note 8. Derivative Instruments and Hedging Activities” for additional information.
(1) Excludes cumulative basis adjustment for loans designated in fair value hedges under the portfolio layer method. As of December 31, 2023, the basis adjustment totaled $8.9 million and represents an increase to the amortized cost of the hedged loans. See “Note 8. Derivative Instruments and Hedging Activities” for additional information. The following tables present the classes of financing receivables within the commercial portfolio segment by risk rating and origination year:
(1) Represents loan balances guaranteed by the Small Business Association (SBA).
(1) Represents loan balances guaranteed by the SBA.
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Schedule of Past Due Financing Receivables | The following tables present an analysis of the past due loans and leases HFI at amortized cost within the commercial portfolio segment:
(1) Represents loan balances guaranteed by the SBA. The following table presents nonaccrual loans and leases:
(1) Subset of total nonaccrual loans and leases. (2) Includes $15.0 million and $10.4 million in loan balances guaranteed by the SBA as of March 31, 2024 and December 31, 2023, respectively.
(1) Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI at amortized cost.
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Schedule of Loan Modifications | The table below presents the amortized cost of loans that were modified during the periods presented, by modification type:
The following table presents the delinquency status of the amortized cost of loan modifications as of the periods presented below that were modified during the preceding twelve months:
(1) Reflects the delinquency status of the amortized cost of loan modifications that were modified during the preceding three months, as the associated ASU 2022-02 was adopted prospectively on January 1, 2023.
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Schedule of Charge-Offs for Loan Modifications | The table below presents the total amount of charge-offs during the period for loan modifications that were entered into within the preceding twelve months of charge-off:
(1) Reflects total amount of charge-offs during the period for loan modifications that were entered into within the preceding three months of charge-off, as the associated ASU 2022-02 was adopted prospectively on January 1, 2023.
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Securitizations and Variable Interest Entities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Select Information Related to VIEs | The following table presents the classifications of assets and liabilities on the Company’s Balance Sheet for its transactions with consolidated and unconsolidated VIEs. The Company’s transactions with VIEs include Structured Program transactions. The Company has also various forms of involvement with VIEs, including servicing loans and holding senior asset-backed securities or subordinated interests in the VIEs. Additionally, the carrying amount of assets and liabilities in the table below exclude intercompany balances that were eliminated in consolidation.
(1) Prior period amounts have been reclassified to conform to the current period presentation. The following table summarizes activity related to unconsolidated VIEs where the transfers were accounted for as a sale on the Company’s financial statements:
(1) Consists primarily of servicing assets recognized at the time of sale, less any transaction costs, and excludes origination fees and fair value adjustments recognized prior to the sale.
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Fair Value Measurements (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Hierarchy of Assets and Liabilities Measured on a Recurring Basis | The following tables present, by level within the fair value hierarchy, the Company’s assets and liabilities measured at fair value on a recurring basis:
(1) Prior period amounts have been reclassified to conform to the current period presentation.
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Schedule of Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements | The following significant unobservable inputs were used in the fair value measurement of loans HFS:
(1) The weighted-average rate is calculated using the original principal balance of each loan pool. The following significant unobservable inputs were used in the fair value measurement of loans HFI:
(1) The weighted-average rate is calculated using the original principal balance of each the loan pool. The following significant unobservable inputs were used in the fair value measurement of other asset-backed securities related to Structured Program transactions:
(1) The weighted-average rate is calculated using the original principal balance of each security. The following significant unobservable inputs were used in the fair value measurement for servicing assets related to loans sold to investors:
(1) The weighted-average rate is calculated using the original principal balance of each loan pool. (2) The fees a willing market participant would require for the servicing of loans with similar characteristics as those in the Company’s serviced portfolio.
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Schedule of Fair Value Sensitivity of Loans | The sensitivity of loans HFS at fair value to adverse changes in key assumptions was as follows:
The sensitivity of loans HFI at fair value to adverse changes in key assumptions was as follows:
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Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents loans HFS at fair value activity:
The following table presents loans HFI at fair value activity:
The following table presents senior asset-backed securities related to Structured Program transactions activity:
The following table presents other asset-backed securities related to Structured Program transactions activity:
The following table presents servicing assets activity:
(1) Represents the servicing assets recorded when the loans are sold. Included in “Gains on sales of loans” within “Marketplace revenue” on the Income Statement.
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Schedule of Components of Portfolio Segment by Class of Financing Receivable | The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following table presents the components of each portfolio segment by class of financing receivable:
(1) Comprised of sales-type leases for equipment. See “Note 17. Leases” for additional information. (2) As of March 31, 2024 and December 31, 2023, the Company had $3.0 billion and $3.5 billion in loans pledged as collateral under the Federal Reserve Bank (FRB) Discount Window, respectively. In addition, as of March 31, 2024 and December 31, 2023, the Company had $479.6 million and $479.0 million in loans pledged to the Federal Home Loan Bank (FHLB) of Des Moines, respectively. The following table presents the components of the allowance for loan and lease losses:
(1) Represents the allowance for future estimated net charge-offs on existing portfolio balances. (2) Represents the negative allowance for expected recoveries of amounts previously charged-off.
(1) Calculated as ALLL or gross ALLL, where applicable, to the corresponding portfolio segment balance of loans and leases held for investment at amortized cost. The following table summarizes the aggregate fair value of the Company’s HFS loans, as well as the amount that was 90 days or more past due:
The following table summarizes the aggregate fair value of the Company’s HFI loans held at fair value, as well as the amount that was 90 days or more past due:
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Schedule of Sensitivity Analysis of Debt Securities Available-for-Sale | The sensitivity in the fair value of senior asset-backed securities related to Structured Program transactions to adverse changes in key assumptions was as follows:
The sensitivity in the fair value of other asset-backed securities related to Structured Program transactions to adverse changes in key assumptions was as follows:
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Schedule of Fair Value Sensitivity of Servicing Assets | The sensitivity of the fair value of servicing assets to adverse changes in key assumptions was as follows:
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Schedule of 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:
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Schedule of Fair Value, by Balance Sheet Grouping | The following tables present the carrying amount and estimated fair values, by level within the fair value hierarchy, of the Company’s assets, and liabilities that are not recorded at fair value on a recurring basis:
(1) Excludes deposit liabilities with no defined or contractual maturities.
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Derivative Instruments and Hedging Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disclosure of Credit Derivatives | The table below presents the notional and gross fair value amounts of the Company’s credit derivatives:
(1) Represents the maximum dollar exposure. (2) The fair value is based on the combined impact of both the quantitative and qualitative credit loss forecast.
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Schedule of Notional and Gross Fair Value Amounts of Derivatives used for Hedging | The table below presents the notional and gross fair value amounts of the Company’s derivatives used for hedging:
(1) Recorded in “Other liabilities” on the Balance Sheet.
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Schedule of Gains (Losses) Related to Fair Value Hedges | The following table summarizes the gains (losses) recognized on the Company’s fair value hedges:
(1) Includes accrued interest receivable and accrued interest payable. (2) Recorded in “Interest and fees on loans held for investment” on the Income Statement.
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Schedule of Cumulative Basis Adjustments for Fair Value Hedges | The following table presents the cumulative basis adjustments for fair value hedges:
(1) Represents the amortized cost of the total closed portfolio of loans designated in a portfolio method hedge relationship in which the hedged item is a stated layer that is expected to be remaining at the end of the hedging relationship. At March 31, 2024 and December 31, 2023, the amortized cost of loans designated as the hedged item in the portfolio layer hedging relationship was $1.5 billion.
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Property, Equipment and Software, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Equipment and Software, Net | Property, equipment and software, net, consist of the following:
(1) Includes $58.3 million and $66.9 million of development in progress for internally-developed software and $4.3 million and $4.6 million of development in progress to customize purchased software as of March 31, 2024 and December 31, 2023, respectively.
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Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The gross and net carrying values and accumulated amortization were as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The expected future amortization expense for intangible assets as of March 31, 2024, is as follows:
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Other Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets consist of the following:
(1) See “Note 16. Income Taxes” for additional detail. (2) Loans underlying servicing assets had a total outstanding principal balance of $8.8 billion and $9.5 billion as of March 31, 2024 and December 31, 2023, respectively. (3) See “Note 10. Goodwill and Intangible Assets” for additional detail.
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Deposits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposits | Deposits consist of the following:
Total certificates of deposit at March 31, 2024 are scheduled to mature as follows:
The following table presents the amount of certificates of deposit with denominations exceeding the Federal Deposit Insurance Corporation (FDIC) limit of $250 thousand, segregated by time remaining until maturity, as of March 31, 2024:
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Borrowings (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | The following table summarizes the Company’s available borrowing capacity and the related pledged collateral:
(1) The reduction in available borrowing capacity as of March 31, 2024 compared to December 31, 2023 was primarily due to a $250 million short-term borrowing from the FHLB of Des Moines. The following table summarizes the components of the Company’s long-term debt, as of the dates indicated:
(1) Collateralized by SBA Paycheck Protection Program (PPP) loans originated by the Company. The maturity date of the PPPLF borrowings matches the maturity date of the pledged SBA PPP loans. When loans are forgiven by the SBA, the corresponding PPPLF advance is paid by the Company. (2) The Company does not assume principal or interest rate risk on loans that were funded by Retail Notes because loan balances, interest rates and maturities were matched and offset by an equal balance of notes with the exact same interest rates and maturities. As of December 31, 2020, LendingClub ceased offering and selling Retail Notes. The total balance of outstanding Retail Notes will continue to decline as underlying borrower payments are made. (3) Consists of certificate participations and securities of certain consolidated VIEs held by third-party investors and secured by “Restricted cash” of $3.1 million as of March 31, 2024 and by “Loans held for investment at fair value” of $0.5 million and “Restricted cash” of $3.4 million as of December 31, 2023.
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Other Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Liabilities | Other liabilities consist of the following:
(1) Represents principal and interest on loans collected by the Company and pending disbursement to investors.
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Employee Incentive Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense | Stock-based compensation expense, included in “Compensation and benefits” expense on the Income Statement, was as follows for the periods presented:
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Schedule of RSU Activity | The following table summarizes the Company’s RSU activity:
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Schedule of PBRSU Activity | The following table summarizes the Company’s PBRSU activity:
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets | The following table summarizes the Company’s net deferred tax assets:
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Leases (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Equipment Finance Assets | The components of Equipment Finance assets are as follows:
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Schedule of Future Minimum Payments to be Received, Fiscal Year Maturity | Future minimum lease payments based on maturity of the Company’s lessor arrangements as of March 31, 2024 were as follows:
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Schedule of Supplemental Balance Sheet Information | Balance sheet information related to leases was as follows:
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Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s operating leases was as follows:
(1) Amounts include noncash remeasurements of the operating lease ROU asset.
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Schedule of Future Minimum Undiscounted Lease Payments | The Company’s future minimum undiscounted lease payments under operating leases as of March 31, 2024 were as follows:
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Schedule of 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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Regulatory Requirements (Tables) |
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Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table summarizes the Company’s and LC Bank’s regulatory capital amounts (in millions) and ratios:
N/A – Not applicable (1) Consists of common stockholders’ equity as defined under U.S. GAAP and certain adjustments made in accordance with regulatory capital guidelines, including the addition of the CECL transitional benefit and deductions for goodwill and other intangible assets.
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Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Financial information for the segments is presented in the following tables:
(1) Prior period amounts have been reclassified to conform to the current period presentation.
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Marketplace Revenue - Components of Marketplace Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Gain on sales of loans | $ 10,909 | $ 14,125 |
Net fair value adjustments | (44,689) | (15,414) |
Total marketplace revenue | 55,891 | 95,634 |
Origination fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 70,079 | 70,543 |
Servicing fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 19,592 | $ 26,380 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|||
Basic EPS: | ||||
Net income attributable to stockholders | $ 12,250 | $ 13,666 | ||
Weighted-average common shares – Basic (in shares) | [1] | 110,685,796 | 106,912,139 | |
Basic EPS ($ per share) | [1] | $ 0.11 | $ 0.13 | |
Diluted EPS: | ||||
Net income attributable to stockholders | $ 12,250 | $ 13,666 | ||
Weighted-average common shares – Diluted (in shares) | [1] | 110,687,380 | 106,917,770 | |
Diluted EPS ($ per share) | [1] | $ 0.11 | $ 0.13 | |
|
Securities Available for Sale - Amortized Cost/Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,284,550 | $ 1,663,990 |
Gross Unrealized Gains | 10,478 | 13,896 |
Gross Unrealized Losses | (63,636) | (57,624) |
Allowance for Credit Losses | (2,892) | |
Fair Value | 2,228,500 | 1,620,262 |
Assets Pledged As Collateral | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 348,800 | 359,500 |
Senior asset-backed securities related to Structured Program transactions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,756,385 | 1,165,513 |
Gross Unrealized Gains | 9,258 | 10,932 |
Gross Unrealized Losses | (384) | (42) |
Allowance for Credit Losses | 0 | |
Fair Value | 1,765,259 | 1,176,403 |
U.S. agency residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 258,373 | 261,885 |
Gross Unrealized Gains | 90 | 208 |
Gross Unrealized Losses | (42,036) | (37,497) |
Allowance for Credit Losses | 0 | |
Fair Value | 216,427 | 224,596 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 93,454 | 93,452 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (14,202) | (13,348) |
Allowance for Credit Losses | 0 | |
Fair Value | 79,252 | 80,104 |
Other asset-backed securities related to Structured Program transactions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 105,658 | 70,662 |
Gross Unrealized Gains | 1,100 | 2,731 |
Gross Unrealized Losses | 0 | 0 |
Allowance for Credit Losses | (2,892) | 0 |
Fair Value | 103,866 | 73,393 |
Restricted investments | 102,600 | 70,100 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 42,010 | 42,511 |
Gross Unrealized Gains | 13 | 0 |
Gross Unrealized Losses | (5,641) | (5,435) |
Allowance for Credit Losses | 0 | |
Fair Value | 36,382 | 37,076 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,418 | 26,710 |
Gross Unrealized Gains | 17 | 25 |
Gross Unrealized Losses | (635) | (634) |
Allowance for Credit Losses | 0 | |
Fair Value | 24,800 | 26,101 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,252 | 3,257 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (738) | (668) |
Allowance for Credit Losses | 0 | |
Fair Value | $ 2,514 | $ 2,589 |
Securities Available for Sale - Continuous Loss (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | $ 375,789 | $ 71,740 |
Unrealized Losses, Less than 12 months | (435) | (981) |
Fair Value, 12 months or longer | 327,942 | 315,760 |
Unrealized Losses, 12 months or longer | (63,201) | (56,643) |
Fair Value | 703,731 | 387,500 |
Unrealized Losses | (63,636) | (57,624) |
Senior asset-backed securities related to Structured Program transactions | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 363,733 | 38,359 |
Unrealized Losses, Less than 12 months | (384) | (42) |
Fair Value, 12 months or longer | 0 | 0 |
Unrealized Losses, 12 months or longer | 0 | 0 |
Fair Value | 363,733 | 38,359 |
Unrealized Losses | (384) | (42) |
U.S. agency residential mortgage-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 3,977 | 6,497 |
Unrealized Losses, Less than 12 months | (20) | (149) |
Fair Value, 12 months or longer | 199,962 | 201,426 |
Unrealized Losses, 12 months or longer | (42,016) | (37,348) |
Fair Value | 203,939 | 207,923 |
Unrealized Losses | (42,036) | (37,497) |
U.S. agency securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 2,994 | 0 |
Unrealized Losses, Less than 12 months | (6) | 0 |
Fair Value, 12 months or longer | 76,258 | 80,104 |
Unrealized Losses, 12 months or longer | (14,196) | (13,348) |
Fair Value | 79,252 | 80,104 |
Unrealized Losses | (14,202) | (13,348) |
Mortgage-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 0 | 13,973 |
Unrealized Losses, Less than 12 months | 0 | (740) |
Fair Value, 12 months or longer | 33,781 | 23,103 |
Unrealized Losses, 12 months or longer | (5,641) | (4,695) |
Fair Value | 33,781 | 37,076 |
Unrealized Losses | (5,641) | (5,435) |
Other asset-backed securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 5,085 | 12,911 |
Unrealized Losses, Less than 12 months | (25) | (50) |
Fair Value, 12 months or longer | 15,427 | 8,538 |
Unrealized Losses, 12 months or longer | (610) | (584) |
Fair Value | 20,512 | 21,449 |
Unrealized Losses | (635) | (634) |
Municipal securities | ||
Schedule of Securities Available-for-sale [Line Items] | ||
Fair Value, Less than 12 months | 0 | 0 |
Unrealized Losses, Less than 12 months | 0 | 0 |
Fair Value, 12 months or longer | 2,514 | 2,589 |
Unrealized Losses, 12 months or longer | (738) | (668) |
Fair Value | 2,514 | 2,589 |
Unrealized Losses | $ (738) | $ (668) |
Securities Available for Sale - Allowance for Credit Losses (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Ending balance as of March 31, 2024 | $ 2,892 |
Other asset-backed securities related to Structured Program transactions | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Beginning balance as of December 31, 2023 | 0 |
Credit loss expense for securities available for sale | 2,892 |
Ending balance as of March 31, 2024 | $ 2,892 |
Securities Available for Sale - Maturities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | $ 1,875,144 | |
Amortized cost, due after 5 years through 10 years | 41,202 | |
Amortized cost, due after 10 years | 368,204 | |
Amortized Cost | 2,284,550 | $ 1,663,990 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 1,881,649 | |
Fair value, due after 5 years through 10 years | 38,636 | |
Fair value, due after 10 years | 308,215 | |
Fair Value | $ 2,228,500 | 1,620,262 |
Weighted-average yield, due after 1 year through 5 years | 8.07% | |
Weighted-average yield, due after 5 years through 10 years | 4.23% | |
Weighted-average yield, due after 10 years | 2.83% | |
Weighted-average yield | 7.02% | |
Senior asset-backed securities related to Structured Program transactions | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | $ 1,756,385 | |
Amortized Cost | 1,756,385 | 1,165,513 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 1,765,259 | |
Fair Value | 1,765,259 | 1,176,403 |
Other asset-backed securities related to Structured Program transactions | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 105,658 | |
Amortized Cost | 105,658 | 70,662 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 103,866 | |
Fair Value | 103,866 | 73,393 |
U.S. agency securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 10,850 | |
Amortized cost, due after 5 years through 10 years | 19,998 | |
Amortized cost, due after 10 years | 62,606 | |
Amortized Cost | 93,454 | 93,452 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 10,447 | |
Fair value, due after 5 years through 10 years | 18,134 | |
Fair value, due after 10 years | 50,671 | |
Fair Value | 79,252 | 80,104 |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 1,694 | |
Amortized cost, due after 5 years through 10 years | 2,012 | |
Amortized cost, due after 10 years | 38,304 | |
Amortized Cost | 42,010 | 42,511 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 1,534 | |
Fair value, due after 5 years through 10 years | 1,690 | |
Fair value, due after 10 years | 33,158 | |
Fair Value | 36,382 | 37,076 |
Other asset-backed securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 400 | |
Amortized cost, due after 5 years through 10 years | 14,143 | |
Amortized cost, due after 10 years | 10,875 | |
Amortized Cost | 25,418 | 26,710 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 402 | |
Fair value, due after 5 years through 10 years | 14,102 | |
Fair value, due after 10 years | 10,296 | |
Fair Value | 24,800 | 26,101 |
U.S. agency residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 3 | |
Amortized cost, due after 5 years through 10 years | 4,584 | |
Amortized cost, due after 10 years | 253,786 | |
Fair Value | ||
Fair value, due after 1 year through 5 years | 3 | |
Fair value, due after 5 years through 10 years | 4,308 | |
Fair value, due after 10 years | 212,116 | |
Fair Value | 216,427 | 224,596 |
Municipal securities | ||
Amortized Cost | ||
Amortized cost, due after 1 year through 5 years | 154 | |
Amortized cost, due after 5 years through 10 years | 465 | |
Amortized cost, due after 10 years | 2,633 | |
Amortized Cost | 3,252 | 3,257 |
Fair Value | ||
Fair value, due after 1 year through 5 years | 138 | |
Fair value, due after 5 years through 10 years | 402 | |
Fair value, due after 10 years | 1,974 | |
Fair Value | $ 2,514 | $ 2,589 |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest receivable, location | Other assets | Other assets | |
Accrued interest | $ 30.7 | $ 32.2 | |
Unsecured personal | Consumer | Short-term payment reduction | Minimum | Short-term payment reduction modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contractual maturity extension from loan modification (up to for permanent loan modifications) | 5 months | ||
Unsecured personal | Consumer | Short-term payment reduction | Maximum | Short-term payment reduction modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Temporary payment reduction period | 3 months | ||
Additional temporary payment reduction period | 3 months | ||
Contractual maturity extension from loan modification (up to for permanent loan modifications) | 8 months | ||
Unsecured personal | Consumer | Short-term payment reduction, first three months of modification | Short-term payment reduction modification | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans modified, amortized cost | $ 20.8 | ||
Unsecured personal | Consumer | Interest rate reduction | Permanent loan modifications | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Weighted average interest rate decrease from modification | 7.70% | 8.00% | |
Unsecured personal | Consumer | Maturity date extension | Permanent loan modifications | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contractual maturity extension from loan modification (up to for permanent loan modifications) | 12 months | ||
Weighted-average maturity date extension | 12 months | 12 months |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Schedule of Components of Portfolio Segment by Class of Financing Receivable (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | $ 4,505,816 | $ 4,850,302 | ||
Allowance for loan and lease losses | (259,150) | (310,387) | $ (348,857) | $ (327,852) |
Loans and leases held for investment, net | 4,246,666 | 4,539,915 | ||
Loans pledged as collateral under the FRB discount window | 3,000,000 | 3,500,000 | ||
Assets Pledged As Collateral | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment, net | 479,600 | 479,000 | ||
Consumer | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 3,831,791 | 4,159,919 | ||
Allowance for loan and lease losses | (246,280) | (298,061) | (333,546) | (312,489) |
Consumer | Unsecured personal | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 3,397,853 | 3,726,830 | ||
Consumer | Residential mortgages | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 180,697 | 183,050 | ||
Consumer | Secured consumer | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 253,241 | 250,039 | ||
Commercial | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 674,025 | 690,383 | ||
Allowance for loan and lease losses | (12,870) | (12,326) | $ (15,311) | $ (15,363) |
Commercial | Equipment finance | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 101,902 | 110,992 | ||
Commercial | Commercial real estate | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | 376,022 | 380,322 | ||
Commercial | Commercial and industrial | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | $ 196,101 | $ 199,069 |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Schedule of Components of Allowance For Loan and Lease Losses (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross allowance for loan and lease losses | $ 311,794 | $ 355,773 | ||
Recovery asset value | (52,644) | (45,386) | ||
Allowance for loan and lease losses | 259,150 | 310,387 | $ 348,857 | $ 327,852 |
Loans and leases held for investment | $ 4,505,816 | $ 4,850,302 | ||
Allowance ratio | 5.80% | 6.40% | ||
Gross allowance ratio | 6.90% | 7.30% | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross allowance for loan and lease losses | $ 298,924 | $ 343,447 | ||
Allowance for loan and lease losses | 246,280 | 298,061 | 333,546 | 312,489 |
Loans and leases held for investment | $ 3,831,791 | $ 4,159,919 | ||
Allowance ratio | 6.40% | 7.20% | ||
Gross allowance ratio | 7.80% | 8.30% | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross allowance for loan and lease losses | $ 12,870 | $ 12,326 | ||
Allowance for loan and lease losses | 12,870 | 12,326 | $ 15,311 | $ 15,363 |
Loans and leases held for investment | $ 674,025 | $ 690,383 | ||
Allowance ratio | 1.90% | 1.80% | ||
Gross allowance ratio | 1.90% | 1.80% |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Schedule of Components of Portfolio Segment Receivables (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | $ 4,505,816 | $ 4,850,302 | ||
Allowance for loan and lease losses | 259,150 | 310,387 | $ 348,857 | $ 327,852 |
Loans held for investment at fair value | $ 4,246,666 | $ 4,539,915 | ||
Allowance ratio | 5.80% | 6.40% | ||
Consumer | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | $ 3,831,791 | $ 4,159,919 | ||
Allowance for loan and lease losses | $ 246,280 | $ 298,061 | 333,546 | 312,489 |
Allowance ratio | 6.40% | 7.20% | ||
Commercial | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases held for investment | $ 674,025 | $ 690,383 | ||
Allowance for loan and lease losses | $ 12,870 | $ 12,326 | $ 15,311 | $ 15,363 |
Allowance ratio | 1.90% | 1.80% |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Allowance For Credit Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | $ 310,387 | $ 327,852 |
Credit loss expense for loans and leases held for investment | 29,246 | 70,850 |
Charge-offs | (90,342) | (52,563) |
Recoveries | 9,859 | 2,718 |
Allowance for loan and lease losses, end of period | 259,150 | 348,857 |
Unfunded Loan Commitment | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Reserve for unfunded lending commitments, beginning of period | 1,873 | 1,878 |
Credit loss expense for unfunded lending commitments | (211) | (266) |
Reserve for unfunded lending commitments, end of period | 1,662 | 1,612 |
Unfunded Loan Commitment, Commitments To Extend Credit | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Reserve for unfunded lending commitments, beginning of period | 78,100 | |
Reserve for unfunded lending commitments, end of period | 72,100 | 117,200 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | 298,061 | 312,489 |
Credit loss expense for loans and leases held for investment | 27,686 | 70,684 |
Charge-offs | (89,110) | (52,212) |
Recoveries | 9,643 | 2,585 |
Allowance for loan and lease losses, end of period | 246,280 | 333,546 |
Consumer | Unfunded Loan Commitment | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Reserve for unfunded lending commitments, beginning of period | 0 | 18 |
Credit loss expense for unfunded lending commitments | 0 | 49 |
Reserve for unfunded lending commitments, end of period | 0 | 67 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | 12,326 | 15,363 |
Credit loss expense for loans and leases held for investment | 1,560 | 166 |
Charge-offs | (1,232) | (351) |
Recoveries | 216 | 133 |
Allowance for loan and lease losses, end of period | 12,870 | 15,311 |
Commercial | Unfunded Loan Commitment | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Reserve for unfunded lending commitments, beginning of period | 1,873 | 1,860 |
Credit loss expense for unfunded lending commitments | (211) | (315) |
Reserve for unfunded lending commitments, end of period | $ 1,662 | $ 1,545 |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Gross Charge-Offs by Origination Year (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Term Loans and Leases by Origination Year | |
Year 1 | $ 0 |
Year 2 | 23,342 |
Year 3 | 48,129 |
Year 4 | 18,060 |
Year 5 | 0 |
Prior | 811 |
Total | 90,342 |
Consumer | |
Term Loans and Leases by Origination Year | |
Year 1 | 0 |
Year 2 | 22,921 |
Year 3 | 48,129 |
Year 4 | 18,060 |
Year 5 | 0 |
Prior | 0 |
Total | 89,110 |
Consumer | Unsecured personal | |
Term Loans and Leases by Origination Year | |
Year 1 | 0 |
Year 2 | 22,857 |
Year 3 | 47,814 |
Year 4 | 17,867 |
Year 5 | 0 |
Prior | 0 |
Total | 88,538 |
Consumer | Residential mortgages | |
Term Loans and Leases by Origination Year | |
Year 1 | 0 |
Year 2 | 0 |
Year 3 | 0 |
Year 4 | 0 |
Year 5 | 0 |
Prior | 0 |
Total | 0 |
Consumer | Secured consumer | |
Term Loans and Leases by Origination Year | |
Year 1 | 0 |
Year 2 | 64 |
Year 3 | 315 |
Year 4 | 193 |
Year 5 | 0 |
Prior | 0 |
Total | 572 |
Commercial | |
Term Loans and Leases by Origination Year | |
Year 1 | 0 |
Year 2 | 421 |
Year 3 | 0 |
Year 4 | 0 |
Year 5 | 0 |
Prior | 811 |
Total | 1,232 |
Commercial | Equipment finance | |
Term Loans and Leases by Origination Year | |
Year 1 | 0 |
Year 2 | 0 |
Year 3 | 0 |
Year 4 | 0 |
Year 5 | 0 |
Prior | 0 |
Total | 0 |
Commercial | Commercial real estate | |
Term Loans and Leases by Origination Year | |
Year 1 | 0 |
Year 2 | 0 |
Year 3 | 0 |
Year 4 | 0 |
Year 5 | 0 |
Prior | 0 |
Total | 0 |
Commercial | Commercial and industrial | |
Term Loans and Leases by Origination Year | |
Year 1 | 0 |
Year 2 | 421 |
Year 3 | 0 |
Year 4 | 0 |
Year 5 | 0 |
Prior | 811 |
Total | $ 1,232 |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Term Loans and Leases by Origination Year | ||
Total | $ 4,505,816 | $ 4,850,302 |
Loans and leases held for investment at amortized cost | ||
Term Loans and Leases by Origination Year | ||
Portfolio layer method basis adjustment - increase (decrease) | 209 | 8,881 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 262,846 | 1,648,591 |
Year 2 | 1,460,920 | 1,885,009 |
Year 3 | 1,604,469 | 535,309 |
Year 4 | 422,380 | 29,960 |
Year 5 | 29,725 | 22,708 |
Prior | 51,242 | 29,461 |
Total | 3,831,582 | 4,151,038 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 233,850 | 1,522,462 |
Year 2 | 1,346,649 | 1,737,631 |
Year 3 | 1,468,562 | 457,856 |
Year 4 | 348,583 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 3,397,644 | 3,717,949 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 53 |
Year 2 | 0 | 48,473 |
Year 3 | 47,695 | 54,855 |
Year 4 | 54,473 | 29,960 |
Year 5 | 29,725 | 20,248 |
Prior | 48,804 | 29,461 |
Total | 180,697 | 183,050 |
Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 28,996 | 126,076 |
Year 2 | 114,271 | 98,905 |
Year 3 | 88,212 | 22,598 |
Year 4 | 19,324 | 0 |
Year 5 | 0 | 2,460 |
Prior | 2,438 | 0 |
Total | 253,241 | 250,039 |
Commercial | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 10,929 | 92,648 |
Year 2 | 99,523 | 220,696 |
Year 3 | 214,238 | 118,301 |
Year 4 | 102,539 | 68,608 |
Year 5 | 65,793 | 74,370 |
Prior | 181,003 | 115,760 |
Total | 674,025 | 690,383 |
Commercial | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 166,471 | 167,982 |
Commercial | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 2,945 |
Year 2 | 2,594 | 48,665 |
Year 3 | 46,000 | 28,273 |
Year 4 | 25,348 | 14,075 |
Year 5 | 12,762 | 10,746 |
Prior | 15,198 | 6,288 |
Total | 101,902 | 110,992 |
Commercial | Equipment finance | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial | Equipment finance | Pass | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 2,945 |
Year 2 | 2,594 | 33,430 |
Year 3 | 31,123 | 26,311 |
Year 4 | 23,762 | 7,754 |
Year 5 | 7,104 | 9,411 |
Prior | 15,198 | 6,288 |
Total | 79,781 | 86,139 |
Commercial | Equipment finance | Pass | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial | Equipment finance | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 15,235 |
Year 3 | 14,877 | 1,962 |
Year 4 | 1,586 | 5,873 |
Year 5 | 5,658 | 1,335 |
Prior | 0 | 0 |
Total | 22,121 | 24,405 |
Commercial | Equipment finance | Special mention | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial | Equipment finance | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 448 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 448 |
Commercial | Equipment finance | Substandard | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial | Equipment finance | Doubtful | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Commercial | Equipment finance | Doubtful | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial | Equipment finance | Loss | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Commercial | Equipment finance | Loss | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 6,868 | 49,067 |
Year 2 | 54,516 | 97,845 |
Year 3 | 95,724 | 43,766 |
Year 4 | 34,763 | 43,058 |
Year 5 | 42,401 | 52,160 |
Prior | 141,750 | 94,426 |
Total | 376,022 | 380,322 |
Commercial | Commercial real estate | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 43,295 | 44,319 |
Commercial | Commercial real estate | Pass | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 6,868 | 49,067 |
Year 2 | 54,516 | 94,247 |
Year 3 | 92,574 | 34,535 |
Year 4 | 24,953 | 43,058 |
Year 5 | 41,839 | 52,160 |
Prior | 125,081 | 78,062 |
Total | 345,831 | 351,129 |
Commercial | Commercial real estate | Pass | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 31,804 | 33,423 |
Commercial | Commercial real estate | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 362 | 0 |
Year 5 | 562 | 0 |
Prior | 14,044 | 13,706 |
Total | 14,968 | 13,706 |
Commercial | Commercial real estate | Special mention | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 421 | 0 |
Commercial | Commercial real estate | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 3,598 |
Year 3 | 447 | 7,716 |
Year 4 | 7,933 | 0 |
Year 5 | 0 | 0 |
Prior | 2,122 | 2,139 |
Total | 10,502 | 13,453 |
Commercial | Commercial real estate | Substandard | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 7,090 | 9,425 |
Commercial | Commercial real estate | Doubtful | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
Commercial | Commercial real estate | Doubtful | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Commercial | Commercial real estate | Loss | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 2,703 | 1,515 |
Year 4 | 1,515 | 0 |
Year 5 | 0 | 0 |
Prior | 503 | 519 |
Total | 4,721 | 2,034 |
Commercial | Commercial real estate | Loss | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 3,980 | 1,471 |
Commercial | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 4,061 | 40,636 |
Year 2 | 42,413 | 74,186 |
Year 3 | 72,514 | 46,262 |
Year 4 | 42,428 | 11,475 |
Year 5 | 10,630 | 11,464 |
Prior | 24,055 | 15,046 |
Total | 196,101 | 199,069 |
Commercial | Commercial and industrial | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 123,176 | 123,663 |
Commercial | Commercial and industrial | Pass | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 4,061 | 40,636 |
Year 2 | 42,413 | 60,352 |
Year 3 | 53,137 | 39,304 |
Year 4 | 34,515 | 9,525 |
Year 5 | 8,732 | 10,282 |
Prior | 20,280 | 11,626 |
Total | 163,138 | 171,725 |
Commercial | Commercial and industrial | Pass | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 101,158 | 104,928 |
Commercial | Commercial and industrial | Special mention | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 10,881 |
Year 3 | 4,375 | 1,532 |
Year 4 | 1,956 | 729 |
Year 5 | 719 | 137 |
Prior | 273 | 444 |
Total | 7,323 | 13,723 |
Commercial | Commercial and industrial | Special mention | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 2,779 | 9,384 |
Commercial | Commercial and industrial | Substandard | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 2,304 |
Year 3 | 12,225 | 5,426 |
Year 4 | 5,957 | 673 |
Year 5 | 652 | 1,045 |
Prior | 1,966 | 1,434 |
Total | 20,800 | 10,882 |
Commercial | Commercial and industrial | Substandard | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 15,143 | 6,908 |
Commercial | Commercial and industrial | Doubtful | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 649 |
Year 3 | 2,225 | 0 |
Year 4 | 0 | 548 |
Year 5 | 527 | 0 |
Prior | 285 | 286 |
Total | 3,037 | 1,483 |
Commercial | Commercial and industrial | Doubtful | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 2,315 | 1,214 |
Commercial | Commercial and industrial | Loss | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 552 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 1,251 | 1,256 |
Total | 1,803 | 1,256 |
Commercial | Commercial and industrial | Loss | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 1,781 | 1,229 |
Current | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 233,407 | 1,498,737 |
Year 2 | 1,321,148 | 1,688,512 |
Year 3 | 1,427,483 | 438,296 |
Year 4 | 334,677 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 3,316,715 | 3,625,545 |
Current | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 53 |
Year 2 | 0 | 48,473 |
Year 3 | 47,695 | 54,855 |
Year 4 | 53,771 | 29,960 |
Year 5 | 29,725 | 18,917 |
Prior | 48,184 | 29,041 |
Total | 179,375 | 181,299 |
Current | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 28,996 | 125,618 |
Year 2 | 113,517 | 97,084 |
Year 3 | 86,493 | 21,949 |
Year 4 | 18,829 | 0 |
Year 5 | 0 | 2,460 |
Prior | 2,438 | 0 |
Total | 250,273 | 247,111 |
30-59 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 443 | 9,034 |
Year 2 | 9,390 | 17,017 |
Year 3 | 15,040 | 6,665 |
Year 4 | 4,979 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 29,852 | 32,716 |
30-59 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 702 | 0 |
Year 5 | 0 | 1,331 |
Prior | 469 | 420 |
Total | 1,171 | 1,751 |
30-59 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 364 |
Year 2 | 545 | 1,295 |
Year 3 | 1,421 | 417 |
Year 4 | 366 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 2,332 | 2,076 |
30-59 days past due | Commercial | ||
Term Loans and Leases by Origination Year | ||
Total | 7,391 | 13,526 |
30-59 days past due | Commercial | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 1,461 | 1,265 |
30-59 days past due | Commercial | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 4,335 | 0 |
30-59 days past due | Commercial | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 1,595 | 12,261 |
60-89 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 7,767 |
Year 2 | 7,932 | 15,538 |
Year 3 | 12,714 | 6,251 |
Year 4 | 4,048 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 24,694 | 29,556 |
60-89 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 0 | 0 |
60-89 days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 94 |
Year 2 | 84 | 373 |
Year 3 | 248 | 168 |
Year 4 | 61 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 393 | 635 |
60-89 days past due | Commercial | ||
Term Loans and Leases by Origination Year | ||
Total | 8,918 | 5,198 |
60-89 days past due | Commercial | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
60-89 days past due | Commercial | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 400 | 3,566 |
60-89 days past due | Commercial | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 8,518 | 1,632 |
90 or more days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Unsecured personal | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 6,924 |
Year 2 | 8,179 | 16,564 |
Year 3 | 13,325 | 6,644 |
Year 4 | 4,879 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 26,383 | 30,132 |
90 or more days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Residential mortgages | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 0 |
Year 5 | 0 | 0 |
Prior | 151 | 0 |
Total | 151 | 0 |
90 or more days past due | Consumer Portfolio Segment, Excluding Cumulative Basis Adjustment for Portfolio Layer Method | Secured consumer | ||
Term Loans and Leases by Origination Year | ||
Year 1 | 0 | 0 |
Year 2 | 125 | 153 |
Year 3 | 50 | 64 |
Year 4 | 68 | 0 |
Year 5 | 0 | 0 |
Prior | 0 | 0 |
Total | 243 | 217 |
90 or more days past due | Commercial | ||
Term Loans and Leases by Origination Year | ||
Total | 9,008 | 3,133 |
90 or more days past due | Commercial | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
90 or more days past due | Commercial | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 4,321 | 1,618 |
90 or more days past due | Commercial | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 4,687 | 1,515 |
Total Days Past Due | Commercial | ||
Term Loans and Leases by Origination Year | ||
Total | 25,317 | 21,857 |
Total Days Past Due | Commercial | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 18,940 | 15,307 |
Total Days Past Due | Commercial | Equipment finance | ||
Term Loans and Leases by Origination Year | ||
Total | 1,461 | 1,265 |
Total Days Past Due | Commercial | Equipment finance | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 0 | 0 |
Total Days Past Due | Commercial | Commercial real estate | ||
Term Loans and Leases by Origination Year | ||
Total | 9,056 | 5,184 |
Total Days Past Due | Commercial | Commercial real estate | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | 7,755 | 4,047 |
Total Days Past Due | Commercial | Commercial and industrial | ||
Term Loans and Leases by Origination Year | ||
Total | 14,800 | 15,408 |
Total Days Past Due | Commercial | Commercial and industrial | Loans guaranteed by the Small Business Association | ||
Term Loans and Leases by Origination Year | ||
Total | $ 11,185 | $ 11,260 |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance For Loan and Lease Losses - Amortized Cost of Loans Modified (Details) - Consumer - Unsecured personal - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Financing Receivable, Modified [Line Items] | ||
Total loan modifications – unsecured personal loans | $ 22,202 | $ 5,437 |
% of unsecured personal loans at amortized cost as of period end | 0.70% | 0.10% |
Short-term payment reduction | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications – unsecured personal loans | $ 14,191 | $ 144 |
Permanent loan modification | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications – unsecured personal loans | 1,645 | 475 |
Debt settlement | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications – unsecured personal loans | $ 6,366 | $ 4,818 |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance For Loan and Lease Losses - Delinquency Status of Amortized Cost of Loan Modifications (Details) - Consumer - Unsecured personal - USD ($) $ in Thousands |
Mar. 31, 2024 |
Mar. 31, 2023 |
---|---|---|
Short-term payment reduction | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | $ 18,375 | $ 144 |
Short-term payment reduction | Current | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 16,509 | 144 |
Short-term payment reduction | 30-59 days past due | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 845 | 0 |
Short-term payment reduction | 60-89 days past due | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 716 | 0 |
Short-term payment reduction | 90 or more days past due | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 305 | 0 |
Permanent loan modification | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 4,315 | 475 |
Permanent loan modification | Current | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 3,905 | 475 |
Permanent loan modification | 30-59 days past due | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 127 | 0 |
Permanent loan modification | 60-89 days past due | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 81 | 0 |
Permanent loan modification | 90 or more days past due | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 202 | 0 |
Debt settlement | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 6,643 | 4,818 |
Debt settlement | Current | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 127 | 19 |
Debt settlement | 30-59 days past due | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 62 | 14 |
Debt settlement | 60-89 days past due | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | 475 | 1,388 |
Debt settlement | 90 or more days past due | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications | $ 5,979 | $ 3,397 |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Charge Offs for Loan Modifications (Details) - Consumer - Unsecured personal - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Financing Receivable, Modified [Line Items] | ||
Total loan modifications – unsecured personal loans | $ 22,407 | $ 5,734 |
Short-term payment reduction | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications – unsecured personal loans | 193 | 0 |
Permanent loan modification | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications – unsecured personal loans | 439 | 27 |
Debt settlement | ||
Financing Receivable, Modified [Line Items] | ||
Total loan modifications – unsecured personal loans | $ 21,775 | $ 5,707 |
Loans and Leases Held for Investment at Amortized Cost, Net of Allowance for Loan and Lease Losses - Nonaccrual and Past Due Table (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 45,307 | $ 44,382 |
Nonaccrual with no related ACL | $ 7,559 | $ 4,089 |
Nonaccrual Ratios | 1.00% | 0.90% |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 26,936 | $ 30,661 |
Nonaccrual with no related ACL | $ 310 | $ 312 |
Nonaccrual Ratios | 0.70% | 0.70% |
Consumer | Unsecured personal | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 26,383 | $ 30,132 |
Nonaccrual with no related ACL | 0 | 0 |
Consumer | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 310 | 312 |
Nonaccrual with no related ACL | 310 | 312 |
Consumer | Secured consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 243 | 217 |
Nonaccrual with no related ACL | 0 | 0 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 18,371 | 13,721 |
Nonaccrual with no related ACL | $ 7,249 | $ 3,777 |
Nonaccrual Ratios | 2.70% | 2.00% |
Commercial | Loans guaranteed by the Small Business Association | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 15,000 | $ 10,400 |
Commercial | Equipment finance | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Nonaccrual with no related ACL | 0 | 0 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 9,115 | 9,663 |
Nonaccrual with no related ACL | 4,167 | 2,187 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 9,256 | 4,058 |
Nonaccrual with no related ACL | $ 3,082 | $ 1,590 |
Securitizations and Variable Interest Entities - Summary of Select Information Related to VIEs (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
||||
---|---|---|---|---|---|---|
Assets | ||||||
Restricted cash | [1] | $ 36,081 | $ 41,644 | |||
Total securities available for sale | 2,228,500 | 1,620,262 | ||||
Loans held for investment at fair value | 4,246,666 | 4,539,915 | ||||
Other assets | [1] | 450,142 | 455,453 | |||
Total assets | 9,244,828 | 8,827,463 | ||||
Liabilities: | ||||||
Borrowings | [1],[2] | 262,550 | 19,354 | |||
Other liabilities | [1] | 194,337 | 222,801 | |||
Total liabilities | 7,978,542 | 7,575,641 | ||||
Total | ||||||
Assets | ||||||
Restricted cash | 3,163 | 3,454 | ||||
Total securities available for sale | 1,869,125 | 1,249,796 | ||||
Loans held for investment at fair value | 234 | 970 | ||||
Other assets | 40,055 | 31,545 | ||||
Total assets | 1,912,577 | 1,285,765 | ||||
Liabilities: | ||||||
Borrowings | 1,894 | 2,888 | ||||
Other liabilities | 4,051 | 3,305 | ||||
Total liabilities | 5,945 | 6,193 | ||||
Total net assets (maximum loss exposure) | 1,906,632 | 1,279,572 | ||||
Consolidated | ||||||
Assets | ||||||
Restricted cash | 3,163 | 3,454 | ||||
Total securities available for sale | 0 | 0 | ||||
Loans held for investment at fair value | 234 | 970 | ||||
Other assets | 11 | 14 | ||||
Total assets | 3,408 | 4,438 | ||||
Liabilities: | ||||||
Borrowings | 1,894 | 2,888 | ||||
Other liabilities | 2 | 4 | ||||
Total liabilities | 1,896 | 2,892 | ||||
Total net assets (maximum loss exposure) | 1,512 | 1,546 | ||||
Unconsolidated | ||||||
Assets | ||||||
Restricted cash | 0 | 0 | ||||
Total securities available for sale | 1,869,125 | 1,249,796 | ||||
Loans held for investment at fair value | 0 | 0 | ||||
Other assets | 40,044 | 31,531 | ||||
Total assets | 1,909,169 | 1,281,327 | ||||
Liabilities: | ||||||
Borrowings | 0 | 0 | ||||
Other liabilities | 4,049 | 3,301 | ||||
Total liabilities | 4,049 | 3,301 | ||||
Total net assets (maximum loss exposure) | $ 1,905,120 | $ 1,278,026 | ||||
|
Securitizations and Variable Interest Entities - Summary of Activity Related to Unconsolidated VIEs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Fair value of consideration received: | ||
Gain on sales of loans | $ 10,909 | $ 14,125 |
Unconsolidated | ||
Fair value of consideration received: | ||
Cash | 93,644 | |
Securities retained from Structured Program transactions | 738,976 | |
Other assets, net | 9,733 | |
Total consideration | 842,353 | |
Fair value of loans sold | (833,776) | |
Gain on sales of loans | 8,577 | |
Cash proceeds from continuing involvement: | ||
Servicing and other administrative fees | 4,723 | |
Interest received on securities retained from Structured Program transactions | $ 29,663 |
Securitizations and Variable Interest Entities - Narratives (Details) - Off-balance Sheet Loans - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Principal derecognized from loans securitized or sold | $ 2,200.0 | $ 1,600.0 |
Off-balance sheet loans, principal amount outstanding, 31 days or more past due | $ 14.6 | $ 9.5 |
Fair Value Measurements - Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Assets | ||
Loans held for sale at fair value | $ 550,415 | $ 407,773 |
Loans held for investment at fair value | 427,396 | 272,678 |
Securities available for sale: | ||
Total securities available for sale | 2,228,500 | 1,620,262 |
Servicing assets | 71,830 | 77,680 |
Other assets | 4,156 | 3,525 |
Total assets | 3,282,297 | 2,381,918 |
Liabilities: | ||
Borrowings | 8,643 | 12,956 |
Other liabilities | 13,168 | 19,727 |
Total liabilities | 21,811 | 32,683 |
Senior asset-backed securities related to Structured Program transactions | ||
Securities available for sale: | ||
Total securities available for sale | 1,765,259 | 1,176,403 |
U.S. agency residential mortgage-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 216,427 | 224,596 |
Other asset-backed securities related to Structured Program transactions | ||
Securities available for sale: | ||
Total securities available for sale | 103,866 | 73,393 |
U.S. agency securities | ||
Securities available for sale: | ||
Total securities available for sale | 79,252 | 80,104 |
Mortgage-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 36,382 | 37,076 |
Other asset-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 24,800 | 26,101 |
Municipal securities | ||
Securities available for sale: | ||
Total securities available for sale | 2,514 | 2,589 |
Level 1 | ||
Assets | ||
Loans held for sale at fair value | 0 | 0 |
Loans held for investment at fair value | 0 | 0 |
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Servicing assets | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Borrowings | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Senior asset-backed securities related to Structured Program transactions | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 1 | U.S. agency residential mortgage-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 1 | Other asset-backed securities related to Structured Program transactions | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 1 | U.S. agency securities | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 1 | Mortgage-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 1 | Other asset-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 1 | Municipal securities | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 2 | ||
Assets | ||
Loans held for sale at fair value | 0 | 0 |
Loans held for investment at fair value | 0 | 0 |
Securities available for sale: | ||
Total securities available for sale | 359,375 | 370,466 |
Servicing assets | 0 | 0 |
Other assets | 4,156 | 3,525 |
Total assets | 363,531 | 373,991 |
Liabilities: | ||
Borrowings | 0 | 0 |
Other liabilities | 4,351 | 12,072 |
Total liabilities | 4,351 | 12,072 |
Level 2 | Senior asset-backed securities related to Structured Program transactions | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 2 | U.S. agency residential mortgage-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 216,427 | 224,596 |
Level 2 | Other asset-backed securities related to Structured Program transactions | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 2 | U.S. agency securities | ||
Securities available for sale: | ||
Total securities available for sale | 79,252 | 80,104 |
Level 2 | Mortgage-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 36,382 | 37,076 |
Level 2 | Other asset-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 24,800 | 26,101 |
Level 2 | Municipal securities | ||
Securities available for sale: | ||
Total securities available for sale | 2,514 | 2,589 |
Level 3 | ||
Assets | ||
Loans held for sale at fair value | 550,415 | 407,773 |
Loans held for investment at fair value | 427,396 | 272,678 |
Securities available for sale: | ||
Total securities available for sale | 1,869,125 | 1,249,796 |
Servicing assets | 71,830 | 77,680 |
Other assets | 0 | 0 |
Total assets | 2,918,766 | 2,007,927 |
Liabilities: | ||
Borrowings | 8,643 | 12,956 |
Other liabilities | 8,817 | 7,655 |
Total liabilities | 17,460 | 20,611 |
Level 3 | Senior asset-backed securities related to Structured Program transactions | ||
Securities available for sale: | ||
Total securities available for sale | 1,765,259 | 1,176,403 |
Level 3 | U.S. agency residential mortgage-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 3 | Other asset-backed securities related to Structured Program transactions | ||
Securities available for sale: | ||
Total securities available for sale | 103,866 | 73,393 |
Level 3 | U.S. agency securities | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 3 | Mortgage-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 3 | Other asset-backed securities | ||
Securities available for sale: | ||
Total securities available for sale | 0 | 0 |
Level 3 | Municipal securities | ||
Securities available for sale: | ||
Total securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Level 3 | 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% | 0.62% |
Level 3 | 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% | 0.62% |
Level 3 | 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% | 0.62% |
Discount rate | Minimum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.071 | 0.070 |
Discount rate | Maximum | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.071 | 0.070 |
Discount rate | Weighted- Average | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.071 | 0.070 |
Discount rate | Level 3 | Minimum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.073 | 0.081 |
Discount rate | Level 3 | Minimum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 7.30% | 8.10% |
Discount rate | Level 3 | Minimum | Loans held for investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 6.70% | 8.40% |
Discount rate | Level 3 | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.70% | 8.70% |
Discount rate | Level 3 | Maximum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.100 | 0.103 |
Discount rate | Level 3 | Maximum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 10.00% | 10.30% |
Discount rate | Level 3 | Maximum | Loans held for investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 24.30% | 16.20% |
Discount rate | Level 3 | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 17.30% | 17.30% |
Discount rate | Level 3 | Weighted- Average | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.084 | 0.090 |
Discount rate | Level 3 | Weighted- Average | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.50% | 9.00% |
Discount rate | Level 3 | Weighted- Average | Loans held for investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 12.70% | 12.80% |
Discount rate | Level 3 | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 11.10% | 11.30% |
Annualized net charge-off rate | Level 3 | Minimum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.048 | 0.049 |
Annualized net charge-off rate | Level 3 | Minimum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 3.80% | 2.70% |
Annualized net charge-off rate | Level 3 | Minimum | Loans held for investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 2.70% | 1.90% |
Annualized net charge-off rate | Level 3 | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 1.90% | 1.90% |
Annualized net charge-off rate | Level 3 | Maximum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.059 | 0.059 |
Annualized net charge-off rate | Level 3 | Maximum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 11.80% | 12.90% |
Annualized net charge-off rate | Level 3 | Maximum | Loans held for investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 21.00% | 5.90% |
Annualized net charge-off rate | Level 3 | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 23.80% | 24.00% |
Annualized net charge-off rate | Level 3 | Weighted- Average | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.055 | 0.055 |
Annualized net charge-off rate | Level 3 | Weighted- Average | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 6.80% | 6.50% |
Annualized net charge-off rate | Level 3 | Weighted- Average | Loans held for investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 6.50% | 3.70% |
Annualized net charge-off rate | Level 3 | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 8.60% | 8.70% |
Annualized prepayment rate | Level 3 | Minimum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.182 | 0.192 |
Annualized prepayment rate | Level 3 | Minimum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 15.70% | 15.70% |
Annualized prepayment rate | Level 3 | Minimum | Loans held for investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 17.10% | 18.60% |
Annualized prepayment rate | Level 3 | Minimum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 15.70% | 15.60% |
Annualized prepayment rate | Level 3 | Maximum | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.201 | 0.210 |
Annualized prepayment rate | Level 3 | Maximum | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 22.40% | 22.50% |
Annualized prepayment rate | Level 3 | Maximum | Loans held for investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 26.30% | 27.70% |
Annualized prepayment rate | Level 3 | Maximum | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 25.80% | 25.70% |
Annualized prepayment rate | Level 3 | Weighted- Average | Other asset-backed securities related to Structured Program transactions | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.197 | 0.201 |
Annualized prepayment rate | Level 3 | Weighted- Average | Loans Held For Sale | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 19.60% | 19.90% |
Annualized prepayment rate | Level 3 | Weighted- Average | Loans held for investment | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 21.30% | 22.60% |
Annualized prepayment rate | Level 3 | Weighted- Average | Servicing Assets | ||
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items] | ||
Measurement input, percent | 19.80% | 20.30% |
Fair Value Measurements - Sensitivity of Fair Value of Loans Held for Sale (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale at fair value | $ 550,415 | $ 407,773 |
Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale at fair value | 550,415 | 407,773 |
Loans Held For Sale | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale at fair value | 550,415 | 407,773 |
Discount rates, impact of 100 basis point increase | (7,305) | (5,093) |
Discount rates, impact of 200 basis point increase | (14,103) | (10,051) |
Expected credit loss rates on underlying loans, 10% adverse change | (6,628) | (5,102) |
Expected credit loss rates on underlying loans, 20% adverse change | (13,055) | (10,184) |
Expected prepayment rates, 10% adverse change | (1,339) | (851) |
Expected prepayment rates, 20% adverse change | $ (2,383) | $ (1,628) |
Loans Held For Sale | Fair Value, Measurements, Recurring | Expected weighted-average life | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected remaining weighted-average life (in years) | 1 year 6 months | 1 year 6 months |
Fair Value Measurements - Fair Value Reconciliation (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of loans held for investment | $ 550,415 | $ 407,773 | |
Fair value of loans held for investment | 427,396 | 272,678 | |
Balance at Fair Value | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of loans held for investment | 4,389,732 | 4,675,354 | |
Other asset-backed securities related to Structured Program transactions | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Change in unrealized loss | (42) | $ 0 | |
Senior asset-backed securities related to Structured Program transactions | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning | 1,176,403 | ||
Originations and purchases, and additions | 697,347 | ||
Principal payments and cash received | (106,474) | ||
Change in unrealized loss | (2,017) | ||
Ending | 1,765,259 | ||
Other asset-backed securities related to Structured Program transactions | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning | 73,393 | 12,469 | |
Originations and purchases, and additions | 42,738 | 113 | |
Principal payments and cash received | (9,331) | (2,185) | |
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized loss | (2,892) | 0 | |
Ending | 103,866 | 10,397 | |
Loans Held For Sale | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning | 407,773 | 110,400 | |
Originations and purchases, and additions | 1,282,250 | 1,205,029 | |
Sales | (1,059,648) | (1,247,246) | |
Principal payments and cash received | (34,272) | (6,465) | |
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized loss | (45,688) | (17,071) | |
Ending | 550,415 | 44,647 | |
Aggregate unpaid principal balance | 577,259 | 431,955 | |
Cumulative fair value adjustments | (26,844) | (24,182) | |
Fair value of loans held for investment | 550,415 | 407,773 | |
Loans Held For Sale | Fair Value, Measurements, Recurring | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of loans held for investment | 550,415 | 407,773 | |
Loans Held For Sale | 90 or more days past due | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Aggregate unpaid principal balance | 1,672 | 1,395 | |
Cumulative fair value adjustments | (1,342) | (1,102) | |
Fair value of loans held for investment | 330 | 293 | |
Loans held for investment | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning | 262,190 | 925,938 | |
Originations and purchases, and additions | 220,564 | 4,037 | |
Principal payments and cash received | (63,926) | (186,451) | |
Interest income accretion and fair value adjustments recorded in earnings, and change in unrealized loss | 1,565 | 5,094 | |
Ending | 420,393 | $ 748,618 | |
Loans held for investment | Fair Value, Measurements, Recurring | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value of loans held for investment | 420,393 | 262,190 | |
Loans held for investment | Balance at Fair Value | Fair Value, Measurements, Recurring | Off-balance Sheet Loans | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Aggregate unpaid principal balance | 448,233 | 281,031 | |
Cumulative fair value adjustments | (27,840) | (18,841) | |
Fair value of loans held for investment | 420,393 | 262,190 | |
Loans held for investment | 90 or more days past due | Balance at Fair Value | Fair Value, Measurements, Recurring | Off-balance Sheet Loans | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Aggregate unpaid principal balance | 2,534 | 3,774 | |
Cumulative fair value adjustments | (2,034) | (3,037) | |
Fair value of loans held for investment | $ 500 | $ 737 |
Fair Value Measurements - Sensitivity Analysis of Loans Held for Investment (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment at fair value | $ 427,396 | $ 272,678 |
Loans held for investment | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment at fair value | 420,393 | 262,190 |
Discount rates, impact of 100 basis point increase | (3,201) | (1,957) |
Discount rates, impact of 200 basis point increase | (6,359) | (3,888) |
Expected credit loss rates on underlying loans, impact of 10% increase | (3,275) | (1,753) |
Expected credit loss rates on underlying loans, impact of 20% increase | (6,717) | (3,595) |
Expected prepayment rates, impact of 10% increase | (1,343) | (857) |
Expected prepayment rates, impact of 20% increase | $ (2,926) | $ (1,675) |
Loans held for investment | Fair Value, Measurements, Recurring | Expected weighted-average life | Weighted- Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expected remaining weighted-average life (in years) | 10 months 24 days | 10 months 24 days |
Fair Value Measurements - Narratives (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment at fair value | $ 427,396 | $ 272,678 |
Loans held for investment | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment at fair value | 420,393 | 262,190 |
Loans held for investment | Fair Value, Measurements, Recurring | Retail and certificate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment at fair value | $ 7,000 | $ 10,500 |
Discount rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.071 | 0.070 |
Discount rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.071 | 0.070 |
Discount rate | Weighted- Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input, debt securities available-for-sale | 0.071 | 0.070 |
Fair Value Measurements - Sensitivity Analysis of Debt Securities Available-for-Sale (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Total securities available for sale | $ 2,228,500 | $ 1,620,262 |
Senior asset-backed securities related to Structured Program transactions | ||
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Total securities available for sale | 1,765,259 | 1,176,403 |
Discount rate: | ||
100 basis point increase | (26,006) | (18,016) |
200 basis point increase | $ (52,013) | $ (36,033) |
Senior asset-backed securities related to Structured Program transactions | Weighted- Average | ||
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Expected remaining weighted-average life (in years) | 1 year 6 months | 1 year 6 months |
Other asset-backed securities related to Structured Program transactions | ||
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Total securities available for sale | $ 103,866 | $ 73,393 |
Discount rate: | ||
100 basis point increase | (1,300) | (927) |
200 basis point increase | (2,557) | (1,836) |
Annualized net charge-off rate | ||
10% increase | (1,169) | (882) |
20% increase | (2,340) | (1,771) |
Annualized prepayment rate | ||
10% increase | (236) | (203) |
20% increase | $ (468) | $ (430) |
Other asset-backed securities related to Structured Program transactions | Weighted- Average | ||
Sensitivity Analysis of Debt Securities Available-for-Sale [Line Items] | ||
Expected remaining weighted-average life (in years) | 1 year 4 months 24 days | 1 year 6 months |
Fair Value Measurements - Fair Value of Servicing Assets to Adverse Changes in Key Assumptions (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Servicing assets | $ 71,830 | $ 77,680 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Servicing assets | 71,830 | 77,680 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Servicing assets | 71,830 | 77,680 | $ 89,241 | $ 84,308 |
Fair Value, Measurements, Recurring | Level 3 | Servicing Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Servicing assets | $ 71,830 | $ 77,680 | ||
Expected remaining weighted-average life (in years) | 1 year 2 months 12 days | 1 year 2 months 12 days | ||
Discount rates, impact of 100 basis point increase | $ (625) | $ (675) | ||
Discount rates, impact of 200 basis point increase | (1,251) | (1,349) | ||
Expected credit loss on rates on underlying loans, 10% adverse change | (755) | (878) | ||
Expected credit loss on rates on underlying loans, 20% adverse change | (1,509) | (1,756) | ||
Expected prepayment rates, 10% adverse change | (1,459) | (1,550) | ||
Expected prepayment rates, 20% adverse change | $ (2,918) | $ (3,100) |
Fair Value Measurements - Additional Information about Servicing Assets and Liabilities Measured Using Different Market Servicing Rates and Different Prepayment (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in rate | 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% | 0.62% |
Servicing rate increase by .1% | $ (8,096) | $ (8,719) |
Servicing rate decrease by .1% | $ 8,096 | $ 8,719 |
Fair Value Measurements - Additional Information about Servicing Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Servicing Assets, Changes in fair value due to: | ||
Fair value at beginning of period | $ 77,680 | |
Fair value at end of period | 71,830 | |
Fair Value, Measurements, Recurring | ||
Servicing Assets, Changes in fair value due to: | ||
Fair value at beginning of period | 77,680 | $ 84,308 |
Issuances | 13,578 | 14,125 |
Change in fair value, included in Marketplace revenue | (19,428) | (12,576) |
Other net changes | 0 | 3,384 |
Fair value at end of period | $ 71,830 | $ 89,241 |
Fair Value Measurements - Not Measured at Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Assets | ||
Loans and leases held for investment, net | $ 427,396 | $ 272,678 |
Other assets | 4,156 | 3,525 |
Total assets | 3,282,297 | 2,381,918 |
Liabilities: | ||
Borrowings | 8,643 | 12,956 |
Other liabilities | 13,168 | 19,727 |
Total liabilities | 21,811 | 32,683 |
Level 1 | ||
Assets | ||
Loans and leases held for investment, net | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Borrowings | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Assets | ||
Loans and leases held for investment, net | 0 | 0 |
Other assets | 4,156 | 3,525 |
Total assets | 363,531 | 373,991 |
Liabilities: | ||
Borrowings | 0 | 0 |
Other liabilities | 4,351 | 12,072 |
Total liabilities | 4,351 | 12,072 |
Level 3 | ||
Assets | ||
Loans and leases held for investment, net | 427,396 | 272,678 |
Other assets | 0 | 0 |
Total assets | 2,918,766 | 2,007,927 |
Liabilities: | ||
Borrowings | 8,643 | 12,956 |
Other liabilities | 8,817 | 7,655 |
Total liabilities | 17,460 | 20,611 |
Carrying Amount | ||
Assets | ||
Loans and leases held for investment, net | 4,246,666 | 4,539,915 |
Other assets | 37,793 | 37,605 |
Total assets | 4,284,459 | 4,577,520 |
Liabilities: | ||
Deposits | 1,544,037 | 1,714,889 |
Borrowings | 253,907 | 6,398 |
Other liabilities | 53,325 | 59,015 |
Total liabilities | 1,851,269 | 1,780,302 |
Balance at Fair Value | ||
Assets | ||
Loans and leases held for investment, net | 4,389,732 | 4,675,354 |
Other assets | 38,148 | 37,901 |
Total assets | 4,427,880 | 4,713,255 |
Liabilities: | ||
Deposits | 1,544,037 | 1,714,203 |
Borrowings | 253,907 | 6,398 |
Other liabilities | 53,325 | 59,015 |
Total liabilities | 1,851,269 | 1,779,616 |
Balance at Fair Value | Level 1 | ||
Assets | ||
Loans and leases held for investment, net | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Balance at Fair Value | Level 2 | ||
Assets | ||
Loans and leases held for investment, net | 0 | 0 |
Other assets | 37,184 | 36,884 |
Total assets | 37,184 | 36,884 |
Liabilities: | ||
Deposits | 0 | 0 |
Borrowings | 250,000 | 0 |
Other liabilities | 31,855 | 36,823 |
Total liabilities | 281,855 | 36,823 |
Balance at Fair Value | Level 3 | ||
Assets | ||
Loans and leases held for investment, net | 4,389,732 | 4,675,354 |
Other assets | 964 | 1,017 |
Total assets | 4,390,696 | 4,676,371 |
Liabilities: | ||
Deposits | 1,544,037 | 1,714,203 |
Borrowings | 3,907 | 6,398 |
Other liabilities | 21,470 | 22,192 |
Total liabilities | $ 1,569,414 | $ 1,742,793 |
Derivative Instruments and Hedging Activities - Schedule of Notional and Gross Fair Value Amounts of Credit Derivatives (Details) - Credit derivatives - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional | $ 8,748 | $ 7,307 |
Gross Derivative Liability Fair Value | $ (7,786) | $ (6,372) |
Derivative Instruments and Hedging Activities - Narratives (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Credit Derivatives [Line Items] | |
Maximum term of credit risk derivatives | 18 months |
Credit derivatives | |
Credit Derivatives [Line Items] | |
Loss on derivative | $ 1.4 |
Interest Rate Swap | Minimum | |
Credit Derivatives [Line Items] | |
Term of contract | 1 year |
Interest Rate Swap | Maximum | |
Credit Derivatives [Line Items] | |
Term of contract | 3 years |
Derivative Instruments and Hedging Activities - Schedule of Notional and Gross Fair Value Amounts of Derivatives used for Hedging (Details) - Interest Rate Swap - Fair Value Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional | $ 1,500,000 | $ 1,500,000 |
Gross Derivative Liability Fair Value | $ (195) | $ (8,547) |
Derivative Instruments and Hedging Activities - Schedule of Gains (Losses) Related to Fair Value Hedges (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Hedged item | $ (8,672) |
Fair Value Hedging | Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivatives used for hedging | 8,352 |
Interest settlement on derivative | 1,373 |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Swap | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Total gains on fair value hedges | $ 1,053 |
Derivative Instruments and Hedging Activities - Schedule of Fair Value Hedges (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged layer of loans with a carrying amount | $ 1,500,000 | $ 1,500,000 |
Loans and leases held for investment at amortized cost | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of Hedged Item | 2,613,869 | 3,109,854 |
Cumulative Fair Value Adjustment to Hedged Item | $ 209 | $ 8,881 |
Property, Equipment and Software, Net - Summary of Property, Equipment and Software (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Software | $ 222,690 | $ 209,260 |
Leasehold improvements | 30,699 | 30,764 |
Computer equipment | 21,645 | 21,654 |
Furniture and fixtures | 5,554 | 5,845 |
Total property, equipment and software | 280,588 | 267,523 |
Accumulated depreciation and amortization | (116,956) | (106,006) |
Total property, equipment and software, net | 163,632 | 161,517 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | 58,300 | 66,900 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, equipment and software | $ 4,300 | $ 4,600 |
Property, Equipment and Software, Net - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 12,673 | $ 12,354 |
Property, Equipment and Software | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 11,700 | $ 11,200 |
Goodwill and Intangible Assets - Narratives (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 75,717,000 | $ 75,717,000 | |
Goodwill impairment | 0 | $ 0 | |
Amortization expense | 1,000,000 | 1,100,000 | |
Impairment of intangible assets | $ 0 | $ 0 | |
Customer Relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, amortized period | 10 years | ||
Customer Relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, amortized period | 14 years |
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying value | $ 11,165 | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 54,500 | $ 54,500 |
Accumulated amortization | (43,335) | (42,365) |
Net carrying value | $ 11,165 | $ 12,135 |
Goodwill and Intangible Assets - Schedule of Expected Future Amortization Expense for Intangible Assets (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 2,579 |
2025 | 2,901 |
2026 | 2,252 |
2027 | 1,603 |
2028 | 945 |
Thereafter | 885 |
Net carrying value | $ 11,165 |
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Deferred tax assets, net | $ 149,669 | $ 151,411 | ||
Servicing assets | 72,440 | 78,401 | ||
Nonmarketable equity investments | 55,047 | 42,891 | ||
Accrued interest receivable | 38,153 | 35,793 | ||
Operating lease assets | 24,824 | 26,611 | ||
Intangible assets, net | 11,165 | 12,135 | ||
Other | 98,844 | 108,211 | ||
Total other assets | [1] | 450,142 | 455,453 | |
Principal balance of underlying loan servicing rights | $ 8,800,000 | $ 9,500,000 | ||
|
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Interest-bearing deposits: | ||
Savings and money market accounts | $ 4,695,523 | $ 4,349,239 |
Certificates of deposit | 1,544,037 | 1,714,889 |
Checking accounts | 974,469 | 937,552 |
Total | 7,214,029 | 7,001,680 |
Noninterest-bearing deposits | 307,626 | 331,806 |
Total deposits | $ 7,521,655 | $ 7,333,486 |
Deposits - Maturity Schedule (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
2024 | $ 1,248,282 | |
2025 | 278,179 | |
2026 | 3,544 | |
2027 | 10,099 | |
2028 | 2,019 | |
Thereafter | 1,914 | |
Total certificates of deposit | $ 1,544,037 | $ 1,714,889 |
Deposits - Certificates of Deposit exceeding FDIC limit (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Other Liabilities Disclosure [Abstract] | |
Three months or less | $ 8,490 |
Over 3 months through 6 months | 48,036 |
Over 6 months through 12 months | 119,352 |
Over 12 months | 6,774 |
Total | $ 182,652 |
Borrowings - Available Borrowing Capacity and the Related Pledged Collateral (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Available Borrowing Capacity | $ 2,891,322 | $ 3,477,838 |
Assets Pledged As Collateral | ||
Debt Instrument [Line Items] | ||
Pledged Collateral | 3,857,348 | 4,346,052 |
FRB Discount Window | Assets Pledged As Collateral | ||
Debt Instrument [Line Items] | ||
Pledged Collateral | 3,028,916 | 3,507,541 |
FHLB of Des Moines | Assets Pledged As Collateral | ||
Debt Instrument [Line Items] | ||
Pledged Collateral | 828,432 | 838,511 |
FRB Discount Window | ||
Debt Instrument [Line Items] | ||
Available Borrowing Capacity | 2,490,762 | 2,816,501 |
FHLB of Des Moines | ||
Debt Instrument [Line Items] | ||
Available Borrowing Capacity | 400,560 | $ 661,337 |
Short-term debt | $ 250,000 |
Borrowings - Narrative (Details) $ in Millions |
1 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
FHLB of Des Moines | |
Short-Term Debt [Line Items] | |
Proceeds from short-term debt | $ 250 |
Borrowings - Long-Term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Consolidated | Payables to Securitization Holders | ||
Debt Instrument [Line Items] | ||
Restricted cash | $ 3,100 | $ 3,400 |
PPPLF | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.35% | |
Outstanding borrowings | $ 3,907 | 6,398 |
Retail notes and certificates | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 7,003 | 10,488 |
Payable on Structured Program borrowings | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 1,640 | 2,468 |
PPPLF | ||
Debt Instrument [Line Items] | ||
Pledged Collateral | 3,590 | 6,392 |
Payable on Structured Program borrowings | ||
Debt Instrument [Line Items] | ||
Pledged Collateral | $ 3,071 | 3,930 |
Other long-term debt | Consolidated | Loans Held for Investment and Loans Held for Sale | Payables to Securitization Holders | ||
Debt Instrument [Line Items] | ||
Pledged Collateral | $ 500 |
Other Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
||
---|---|---|---|---|
Payables and Accruals [Abstract] | ||||
Accounts payable and accrued expenses | $ 46,306 | $ 54,619 | ||
Operating lease liabilities | 35,138 | 37,869 | ||
Payable to investors | 31,855 | 36,823 | ||
Other | 81,038 | 93,490 | ||
Total other liabilities | [1] | $ 194,337 | $ 222,801 | |
|
Employee Incentive Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Stock options | ||
Stock-based compensation expense, gross | $ 13,599 | $ 14,292 |
Less: Capitalized stock-based compensation expense | 2,055 | 2,404 |
Stock-based compensation expense, net | 11,544 | 11,888 |
RSUs | ||
Stock options | ||
Stock-based compensation expense, gross | 11,982 | 13,590 |
PBRSUs | ||
Stock options | ||
Stock-based compensation expense, gross | $ 1,617 | $ 702 |
Employee Incentive Plans - RSU and PBRSU Activity and Weighted Average Grant Date Fair Value table (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
RSUs | |
Number of Units | |
Unvested, beginning (shares) | shares | 6,999,831 |
Granted (shares) | shares | 3,541,491 |
Vested (shares) | shares | (1,266,737) |
Forfeited/expired (shares) | shares | (110,402) |
Unvested, ending (shares) | shares | 9,164,183 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning ($ per share) | $ / shares | $ 9.42 |
Granted ($ per share) | $ / shares | 8.55 |
Vested ($ per share) | $ / shares | 10.38 |
Forfeited/expired ($ per share) | $ / shares | 9.04 |
Unvested, ending ($ per share) | $ / shares | $ 8.96 |
PBRSUs | |
Number of Units | |
Unvested, beginning (shares) | shares | 1,469,813 |
Granted (shares) | shares | 462,060 |
Forfeited/expired (shares) | shares | (364,970) |
Unvested, ending (shares) | shares | 1,566,903 |
Weighted- Average Grant Date Fair Value | |
Unvested, beginning ($ per share) | $ / shares | $ 12.60 |
Granted ($ per share) | $ / shares | 8.59 |
Forfeited/expired ($ per share) | $ / shares | 24.54 |
Unvested, ending ($ per share) | $ / shares | $ 8.64 |
Employee Incentive Plans - Narratives (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
shares
| |
RSUs | |
Stock options | |
Granted (shares) | shares | 3,541,491 |
Equity instruments other than options, aggregate fair value | $ 30.3 |
Unrecognized compensation cost related to unvested awards | $ 76.7 |
Unrecognized compensation cost, period for recognition | 2 years 1 month 6 days |
PBRSUs | |
Stock options | |
Granted (shares) | shares | 462,060 |
Equity instruments other than options, aggregate fair value | $ 4.0 |
Unrecognized compensation cost related to unvested awards | $ 8.3 |
Unrecognized compensation cost, period for recognition | 1 year 9 months 18 days |
Performance period | 3 years |
Income Taxes - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 4,278 | $ 4,136 |
Effective tax rate | 25.90% | 23.20% |
Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, net of liabilities | $ 195,777 | $ 197,519 |
Valuation allowance | (46,108) | (46,108) |
Deferred tax assets, net of valuation allowance | $ 149,669 | $ 151,411 |
Leases - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Lessee, Lease, Description [Line Items] | ||
Sales-type lease, interest income | $ 1,700 | $ 2,900 |
Lease renewal term | 15 years | |
Security deposit | $ 400 | |
Letters of credit outstanding, amount | 1,100 | |
Occupancy | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 2,600 | $ 2,900 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 2 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 5 years |
Leases - Components of Equipment Finance Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Lease receivables | $ 82,710 | $ 92,546 |
Unguaranteed residual asset values | 28,489 | 28,913 |
Unearned income | (9,840) | (11,072) |
Deferred fees | 543 | 605 |
Total | $ 101,902 | $ 110,992 |
Leases - Future Minimum Lease Payments Receivable (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Leases [Abstract] | |
2024 | $ 28,281 |
2025 | 27,236 |
2026 | 16,408 |
2027 | 7,836 |
2028 | 4,057 |
Thereafter | 1,549 |
Total lease payments | 85,367 |
Discount effect | (2,657) |
Present value of future minimum lease payments | $ 82,710 |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Operating lease assets, balance sheet classification | Other assets | Other assets |
Operating lease assets | $ 24,824 | $ 26,611 |
Operating lease liabilities, balance sheet classification | Other liabilities | Other liabilities |
Operating lease liabilities | $ 35,138 | $ 37,869 |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Leased assets obtained or adjusted in exchange for new, amended, and modified operating lease liabilities | $ 0 | $ (4,664) |
Leases - Future Operating Lease Payments and Sublease Revenue (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Operating Lease Payments | ||
2024 | $ 9,635 | |
2025 | 13,129 | |
2026 | 7,228 | |
2027 | 4,265 | |
2028 | 3,922 | |
Thereafter | 909 | |
Total lease payments | 39,088 | |
Discount effect | (3,950) | |
Present value of future minimum lease payments | $ 35,138 | $ 37,869 |
Leases - Weighted-average Lease Term and Discount Rate (Details) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 3 years 6 months 3 days | 3 years 8 months 19 days |
Weighted-average discount rate | 5.02% | 5.04% |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
---|---|---|---|
Unfunded Loan Commitment, Commitments To Extend Credit | |||
Loss Contingencies [Line Items] | |||
Unfunded loan commitments | $ 72.1 | $ 78.1 | $ 117.2 |
Regulatory Requirements - Narratives (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
---|---|
Regulated Operations [Abstract] | |
Capital benefit used in the computation of common equity tier one capital | $ 35 |
Regulatory Requirements - Summary of Regulatory Capital and Ratios (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
---|---|---|
Parent | ||
Amount | ||
CET1 capital | $ 1,100.9 | $ 1,090.2 |
Tier 1 capital | 1,100.9 | 1,090.2 |
Total capital | 1,181.0 | 1,169.2 |
Tier 1 leverage | 1,100.9 | 1,090.2 |
Risk-weighted assets | 6,254.9 | 6,104.5 |
Quarterly adjusted average assets | $ 8,799.8 | $ 8,476.1 |
Ratio | ||
CET1 capital | 0.176 | 0.179 |
Tier 1 capital | 0.176 | 0.179 |
Total capital | 0.189 | 0.192 |
Tier 1 leverage | 0.125 | 0.129 |
Required Minimum plus Required CCB for Non-Leverage Ratios | ||
CET1 capital | 0.070 | |
Tier 1 capital | 0.085 | |
Total capital | 0.105 | |
Tier 1 leverage | 0.040 | |
LendingClub Bank | ||
Amount | ||
CET1 capital | $ 949.4 | $ 949.4 |
Tier 1 capital | 949.4 | 949.4 |
Total capital | 1,028.6 | 1,027.4 |
Tier 1 leverage | 949.4 | 949.4 |
Risk-weighted assets | 6,180.2 | 6,022.2 |
Quarterly adjusted average assets | $ 8,666.7 | $ 8,337.4 |
Ratio | ||
CET1 capital | 0.154 | 0.158 |
Tier 1 capital | 0.154 | 0.158 |
Total capital | 0.166 | 0.171 |
Tier 1 leverage | 0.110 | 0.114 |
Required Minimum plus Required CCB for Non-Leverage Ratios | ||
CET1 capital | 0.070 | |
Tier 1 capital | 0.085 | |
Total capital | 0.105 | |
Tier 1 leverage | 0.040 |
Segment Reporting - Narratives (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Total net revenue | Customer concentration risk | One marketplace bank investor | |
Segment Reporting Information [Line Items] | |
Concentration risk, percentage | 15.00% |
Segment Reporting - Statements of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Segment Reporting Information [Line Items] | ||
Marketplace revenue | $ 55,891 | $ 95,634 |
Other non-interest income | 1,909 | 3,356 |
Total non-interest income | 57,800 | 98,990 |
Interest income | 207,351 | 202,413 |
Interest expense | (84,463) | (55,709) |
Net interest income | 122,888 | 146,704 |
Total net revenue | 180,688 | 245,694 |
Provision for credit losses | (31,927) | (70,584) |
Non-interest expense | (132,233) | (157,308) |
Income before income tax expense | 16,528 | 17,802 |
Income tax benefit (expense) | (4,278) | (4,136) |
Net income | 12,250 | 13,666 |
Capital expenditures | 11,781 | 16,398 |
Depreciation and amortization | 12,673 | 12,354 |
Operating Segments | LendingClub Bank | ||
Segment Reporting Information [Line Items] | ||
Marketplace revenue | 38,515 | 72,688 |
Other non-interest income | 13,695 | 19,161 |
Total non-interest income | 52,210 | 91,849 |
Interest income | 204,807 | 198,330 |
Interest expense | (84,123) | (53,896) |
Net interest income | 120,684 | 144,434 |
Total net revenue | 172,894 | 236,283 |
Provision for credit losses | (31,927) | (70,584) |
Non-interest expense | (126,496) | (148,383) |
Income before income tax expense | 14,471 | 17,316 |
Income tax benefit (expense) | (3,685) | (4,256) |
Net income | 10,786 | 13,060 |
Capital expenditures | 11,781 | 16,398 |
Depreciation and amortization | 10,166 | 6,894 |
Operating Segments | LendingClub Corporation (Parent only) | ||
Segment Reporting Information [Line Items] | ||
Marketplace revenue | 9,828 | 13,108 |
Other non-interest income | 1,946 | 2,553 |
Total non-interest income | 11,774 | 15,661 |
Interest income | 2,544 | 4,083 |
Interest expense | (340) | (1,813) |
Net interest income | 2,204 | 2,270 |
Total net revenue | 13,978 | 17,931 |
Provision for credit losses | 0 | 0 |
Non-interest expense | (11,921) | (17,445) |
Income before income tax expense | 2,057 | 486 |
Income tax benefit (expense) | (593) | 120 |
Net income | 1,464 | 606 |
Capital expenditures | 0 | 0 |
Depreciation and amortization | 2,507 | 5,460 |
Intercompany Eliminations | ||
Segment Reporting Information [Line Items] | ||
Marketplace revenue | 7,548 | 9,838 |
Other non-interest income | (13,732) | (18,358) |
Total non-interest income | (6,184) | (8,520) |
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Net interest income | 0 | 0 |
Total net revenue | (6,184) | (8,520) |
Provision for credit losses | 0 | 0 |
Non-interest expense | 6,184 | 8,520 |
Income before income tax expense | 0 | 0 |
Income tax benefit (expense) | 0 | 0 |
Net income | 0 | 0 |
Capital expenditures | 0 | 0 |
Depreciation and amortization | $ 0 | $ 0 |
Segment Reporting - Balance Sheets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
||||
---|---|---|---|---|---|---|---|---|
Assets | ||||||||
Total cash and cash equivalents | $ 1,066,279 | $ 1,252,504 | ||||||
Restricted cash | [1] | 36,081 | 41,644 | |||||
Total securities available for sale | 2,228,500 | 1,620,262 | ||||||
Loans held for sale at fair value | 550,415 | 407,773 | ||||||
Loans and leases held for investment, net | 4,246,666 | 4,539,915 | ||||||
Loans held for investment at fair value | [1],[2] | 427,396 | 272,678 | |||||
Property, equipment and software, net | 163,632 | 161,517 | ||||||
Investment in subsidiary | 0 | 0 | ||||||
Goodwill | 75,717 | 75,717 | ||||||
Other assets | [1] | 450,142 | 455,453 | |||||
Total assets | 9,244,828 | 8,827,463 | ||||||
Liabilities and Equity | ||||||||
Total deposits | 7,521,655 | 7,333,486 | ||||||
Borrowings | [1],[2] | 262,550 | 19,354 | |||||
Other liabilities | [1] | 194,337 | 222,801 | |||||
Liabilities | 7,978,542 | 7,575,641 | ||||||
Total equity | 1,266,286 | 1,251,822 | $ 1,190,742 | $ 1,164,294 | ||||
Total liabilities and equity | 9,244,828 | 8,827,463 | ||||||
Operating Segments | LendingClub Bank | ||||||||
Assets | ||||||||
Total cash and cash equivalents | 1,044,809 | 1,230,206 | ||||||
Restricted cash | 0 | 0 | ||||||
Total securities available for sale | 2,227,233 | 1,617,309 | ||||||
Loans held for sale at fair value | 550,415 | 407,773 | ||||||
Loans and leases held for investment, net | 4,246,666 | 4,539,915 | ||||||
Loans held for investment at fair value | 414,607 | 253,800 | ||||||
Property, equipment and software, net | 149,078 | 144,439 | ||||||
Investment in subsidiary | 0 | 0 | ||||||
Goodwill | 75,717 | 75,717 | ||||||
Other assets | 350,509 | 341,680 | ||||||
Total assets | 9,059,034 | 8,610,839 | ||||||
Liabilities and Equity | ||||||||
Total deposits | 7,630,455 | 7,426,445 | ||||||
Borrowings | 253,907 | 6,398 | ||||||
Other liabilities | 133,229 | 154,077 | ||||||
Liabilities | 8,017,591 | 7,586,920 | ||||||
Total equity | 1,041,443 | 1,023,919 | ||||||
Total liabilities and equity | 9,059,034 | 8,610,839 | ||||||
Operating Segments | LendingClub Corporation (Parent only) | ||||||||
Assets | ||||||||
Total cash and cash equivalents | 125,402 | 110,273 | ||||||
Restricted cash | 40,949 | 46,628 | ||||||
Total securities available for sale | 1,267 | 2,953 | ||||||
Loans held for sale at fair value | 0 | 0 | ||||||
Loans and leases held for investment, net | 0 | 0 | ||||||
Loans held for investment at fair value | 12,789 | 18,878 | ||||||
Property, equipment and software, net | 14,554 | 17,078 | ||||||
Investment in subsidiary | 829,172 | 816,703 | ||||||
Goodwill | 0 | 0 | ||||||
Other assets | 116,012 | 131,135 | ||||||
Total assets | 1,140,145 | 1,143,648 | ||||||
Liabilities and Equity | ||||||||
Total deposits | 0 | 0 | ||||||
Borrowings | 8,643 | 12,956 | ||||||
Other liabilities | 77,487 | 86,086 | ||||||
Liabilities | 86,130 | 99,042 | ||||||
Total equity | 1,054,015 | 1,044,606 | ||||||
Total liabilities and equity | 1,140,145 | 1,143,648 | ||||||
Intercompany Eliminations | ||||||||
Assets | ||||||||
Total cash and cash equivalents | (103,932) | (87,975) | ||||||
Restricted cash | (4,868) | (4,984) | ||||||
Total securities available for sale | 0 | 0 | ||||||
Loans held for sale at fair value | 0 | 0 | ||||||
Loans and leases held for investment, net | 0 | 0 | ||||||
Loans held for investment at fair value | 0 | 0 | ||||||
Property, equipment and software, net | 0 | 0 | ||||||
Investment in subsidiary | (829,172) | (816,703) | ||||||
Goodwill | 0 | 0 | ||||||
Other assets | (16,379) | (17,362) | ||||||
Total assets | (954,351) | (927,024) | ||||||
Liabilities and Equity | ||||||||
Total deposits | (108,800) | (92,959) | ||||||
Borrowings | 0 | 0 | ||||||
Other liabilities | (16,379) | (17,362) | ||||||
Liabilities | (125,179) | (110,321) | ||||||
Total equity | (829,172) | (816,703) | ||||||
Total liabilities and equity | $ (954,351) | $ (927,024) | ||||||
|
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