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Loans (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Schedule of Loans

Below is a disaggregated presentation of our loans, inclusive of fair market value adjustments and accrued interest income and net of the allowance for credit losses, as applicable, as of the dates indicated:

			June 30,						December 31,
			2022						2021
Loans at fair value
Securitized student loans			$	466,865					$	574,328
Securitized personal loans			132,133						234,576
Student loans			3,247,510						2,876,509
Home loans			135,262						212,709
Personal loans			3,977,612						2,054,850
Total loans at fair value			7,959,382						5,952,972
Loans at amortized cost(1)
Credit card			173,867						115,912
Commercial and consumer banking:
Commercial real estate			67,742						—
Commercial and industrial			8,097						—
Residential real estate and other consumer			3,406						—
Total commercial and consumer banking			79,245						—
Total loans at amortized cost			253,112						115,912
Total loans			$	8,212,494					$	6,068,884

_____________________

(1) Amounts are presented net of the allowance for credit losses. See Note 1 for additional information on our loans at amortized cost as it pertains to the allowance for credit losses pursuant to ASC 326.

The following table summarizes the aggregate fair value of our loans measured at fair value on a recurring basis as of the dates indicated:

			Student Loans						Home Loans						Personal Loans						Total
June 30, 2022
Unpaid principal(1)			$	3,657,693					$	142,118					$	3,943,768					$	7,743,579
Accumulated interest			9,601						159						23,055						32,815
Cumulative fair value adjustments(1)			47,081						(7,015)						142,922						182,988
Total fair value of loans			$	3,714,375					$	135,262					$	4,109,745					$	7,959,382
December 31, 2021
Unpaid principal(1)			$	3,356,344					$	210,111					$	2,188,773					$	5,755,228
Accumulated interest			9,990						190						12,310						22,490
Cumulative fair value adjustments(1)			84,503						2,408						88,343						175,254
Total fair value of loans			$	3,450,837					$	212,709					$	2,289,426					$	5,952,972

__________________

(1) These items are impacted by charge-offs during the period.

The following table summarizes the aggregate fair value of loans 90 days or more delinquent as of the dates indicated. As delinquent personal loans and student loans are charged off after 120 days of delinquency, amounts presented below represent the fair value of loans that are 90 to 120 days delinquent. There were no home loans that were 90 days or more delinquent as of the dates presented.

			Student Loans												Personal Loans						Total
June 30, 2022
Unpaid principal			$	1,372											$	8,260					$	9,632
Accumulated interest			18												304						322
Cumulative fair value adjustments			(733)												(7,266)						(7,999)
Fair value of loans 90 days or more delinquent			$	657											$	1,298					$	1,955
December 31, 2021
Unpaid principal			$	1,589											$	4,765					$	6,354
Accumulated interest			32												149						181
Cumulative fair value adjustments			(865)												(4,189)						(5,054)
Fair value of loans 90 days or more delinquent			$	756											$	725					$	1,481

Schedule of Loans Measured at Fair Value

The following table presents the changes in our loans measured at fair value on a recurring basis:

			Student Loans						Home Loans						Personal Loans						Total
Three Months Ended June 30, 2022
Fair value as of March 31, 2022			$	3,737,439					$	146,658					$	3,118,788					$	7,002,885
Origination of loans			398,722						332,047						2,471,849						3,202,618
Principal payments			(167,049)						(701)						(461,178)						(628,928)
Sales of loans			(259,690)						(342,780)						(1,123,898)						(1,726,368)
Purchases(1)			5,274						330						67,189						72,793
Change in accumulated interest			(139)						(23)						5,162						5,000
Change in fair value(2)			(182)						(269)						31,833						31,382
Fair value as of June 30, 2022			$	3,714,375					$	135,262					$	4,109,745					$	7,959,382
Three Months Ended June 30, 2021
Fair value as of March 31, 2021			$	2,666,793					$	231,903					$	1,573,908					$	4,472,604
Origination of loans			859,497						792,228						1,294,384						2,946,109
Principal payments			(235,889)						(1,280)						(247,808)						(484,977)
Sales of loans			(610,941)						(841,642)						(970,135)						(2,422,718)
Purchases(1)			44,779						422						103,538						148,739
Change in accumulated interest			(403)						17						(153)						(539)
Change in fair value(2)			15,657						665						9,808						26,130
Fair value as of June 30, 2021			$	2,739,493					$	182,313					$	1,763,542					$	4,685,348
Six Months Ended June 30, 2022
Fair value as of January 1, 2022			$	3,450,837					$	212,709					$	2,289,426					$	5,952,972
Origination of loans			1,382,526						644,430						4,497,853						6,524,809
Principal payments			(394,164)						(5,101)						(833,632)						(1,232,897)
Sales of loans			(803,840)						(708,150)						(2,101,818)						(3,613,808)
Purchases(1)			121,707						828						227,937						350,472
Change in accumulated interest			(389)						(31)						10,745						10,325
Change in fair value(2)			(42,302)						(9,423)						19,234						(32,491)
Fair value as of June 30, 2022			$	3,714,375					$	135,262					$	4,109,745					$	7,959,382
Six Months Ended June 30, 2021
Fair value as of January 1, 2021			$	2,866,459					$	179,689					$	1,812,920					$	4,859,068
Origination of loans			1,864,182						1,527,832						2,100,073						5,492,087
Principal payments			(486,108)						(2,759)						(506,007)						(994,874)
Sales of loans			(1,547,101)						(1,519,208)						(1,749,576)						(4,815,885)
Purchases(1)			44,850						541						104,539						149,930
Change in accumulated interest			(1,652)						(18)						(2,340)						(4,010)
Change in fair value(2)			(1,137)						(3,764)						3,933						(968)
Fair value as of June 30, 2021			$	2,739,493					$	182,313					$	1,763,542					$	4,685,348

__________________

(1) Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three and six months ended June 30, 2022 included securitization clean-up calls of $60,240 and $335,739, respectively. Additionally, during the three and six months ended June 30, 2022, the Company elected to purchase $7,290 and $7,290, respectively, of previously sold loans from certain investors. Purchase activity during the three and six months ended June 30, 2021 included securitization clean-up calls of $131,372 and $131,372, respectively. Additionally, during the three and six months ended June 30, 2021, the Company elected to purchase $15,185 and $15,185, respectively, of previously sold loans from certain investors. The Company was not required to buy back these loans. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements.

(2) Changes in fair value of loans are recorded in the unaudited condensed consolidated statements of operations and comprehensive income (loss) within noninterest income—loan origination and sales for loans held on the balance sheet prior to transfer to a third party through a sale or to a VIE and within noninterest income—securitizations for loans in a consolidated VIE. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were $23,221 and $16,725 during the three and six months ended June 30, 2022, respectively, and $9,038 and $2,111 during the three and six months ended June 30, 2021, respectively. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument.

The following table presents the changes in the residual investments and residual interests classified as debt, which are both measured at fair value on a recurring basis. We record changes in fair value within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively.

			Residual Investments						Residual Interests Classified as Debt
Three Months Ended June 30, 2022
Fair value as of March 31, 2022			$	106,677					$	70,532
Change in valuation inputs or other assumptions(1)			290						2,662
Payments			(11,989)						(18,758)
Fair value as of June 30, 2022			$	94,978					$	54,436
Three Months Ended June 30, 2021
Fair value as of March 31, 2021			$	150,961					$	114,882
Additions			11,787						2,170
Change in valuation inputs or other assumptions(1)			3,355						5,717
Payments			(23,003)						(10,224)
Fair value as of June 30, 2021			$	143,100					$	112,545
Six Months Ended June 30, 2022
Fair value as of January 1, 2022			$	121,019					$	93,682
Change in valuation inputs or other assumptions(1)			1,052						5,625
Payments(2)			(27,093)						(44,871)
Fair value as of June 30, 2022			$	94,978					$	54,436
Six Months Ended June 30, 2021
Fair value as of January 1, 2021			$	139,524					$	118,298
Additions			38,168						2,170
Change in valuation inputs or other assumptions(1)			6,852						13,668
Payments(2)			(41,444)						(21,591)
Fair value as of June 30, 2021			$	143,100					$	112,545

___________________

(1)For residual investments, the estimated amounts of gains and losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented.

(2)Payments of residual investments included residual investment sales of $220 and $220 during the three and six months ended June 30, 2022, respectively, and $2,676 and $2,676 during the three and six months ended June 30, 2021, respectively.

The following table presents the changes in our IRLCs and student loan commitments, which are measured at fair value on a recurring basis. Changes in the fair values of IRLCs and student loan commitments are recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

			IRLCs						Student Loan Commitments
Three Months Ended June 30, 2022
Fair value as of March 31, 2022			$	(3,039)					$	23
Revaluation adjustments			1,120						(254)
Funded loans(1)			1,636						(19)
Unfunded loans(1)			1,403						(4)
Fair value as of June 30, 2022			$	1,120					$	(254)
Three Months Ended June 30, 2021
Fair value as of March 31, 2021			$	7,118					$	—
Revaluation adjustments			7,760						—
Funded loans(1)			(5,275)						—
Unfunded loans(1)			(1,843)						—
Fair value as of June 30, 2021			$	7,760					$	—
Six Months Ended June 30, 2022
Fair value as of January 1, 2022			$	3,759					$	2,220
Revaluation adjustments			(1,919)						(231)
Funded loans(1)			(565)						(2,140)
Unfunded loans(1)			(155)						(103)
Fair value as of June 30, 2022			$	1,120					$	(254)
Six Months Ended June 30, 2021
Fair value as of January 1, 2021			$	15,620					$	—
Revaluation adjustments			14,878						—
Funded loans(1)			(15,485)						—
Unfunded loans(1)			(7,253)						—
Fair value as of June 30, 2021			$	7,760					$	—

___________________

(1)For each quarter presented, funded and unfunded loan fair value adjustments represent the unpaid principal balance of funded and unfunded loans, respectively, during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. For the year-to-date periods presented, amounts represent the summation of the per-quarter effects.

The following table presents the changes in our purchase price earn-out, which is measured at fair value on a recurring basis. Changes in the fair value are recorded within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Changes during the three and six months ended June 30, 2021 were immaterial.

			Purchase Price Earn-Out
Three Months Ended June 30, 2022
Fair value as of March 31, 2022			$	2,285
Payments			(1,872)
Changes in valuation inputs or assumptions(1)			212
Fair value as of June 30, 2022			$	625
Six Months Ended June 30, 2022
Fair value as of January 1, 2022			$	4,272
Payments			(4,689)
Changes in valuation inputs or assumptions(1)			1,042
Fair value as of June 30, 2022			$	625

___________________

(1)The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the three and six months ended June 30, 2022. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the purchase price earn-out. These assumptions are based on historical performance and performance expectations over the term of the underlying instrument.

Schedule of Aging Analysis for Credit Card Loans

The following table presents the amortized cost basis of our credit card and commercial and consumer banking portfolios (excluding accrued interest and before the allowance for credit losses) by either current status or delinquency status as of the dates indicated:

									Delinquent Loans
			Current						30–59 Days						60–89 Days						≥ 90 Days(1)						Total Delinquent Loans						Total Loans(2)
June 30, 2022
Credit card			$	177,732					$	3,570					$	3,105					$	8,417					$	15,092					$	192,824
Commercial and consumer banking:
Commercial real estate			68,479						—						—						—						—						68,479
Commercial and industrial			8,299						7						—						—						7						8,306
Residential real estate and other consumer(3)			3,417						—						—						—						—						3,417
Total commercial and consumer banking			80,195						7						—						—						7						80,202
Total loans			$	257,927					$	3,577					$	3,105					$	8,417					$	15,099					$	273,026
December 31, 2021
Credit card			$	115,356					$	1,893					$	1,683					$	2,658					$	6,234					$	121,590

_______________

(1)All of the credit card loans ≥ 90 days past due continued to accrue interest. As of June 30, 2022 and December 31, 2021, there were no credit card loans on nonaccrual status. As of June 30, 2022, commercial and consumer banking loans on nonaccrual status were immaterial, and there were no loans that were 90 days or more past due.

(2)For credit card, the balance is presented before allowance for credit losses of $21,974 and $7,037 as of June 30, 2022 and December 31, 2021, respectively, and accrued interest of $3,017 and $1,359, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,204 and accrued interest of $247 as of June 30, 2022.

(3)Includes residential real estate loans acquired in the Bank Merger, for which we did not elect the fair value option.

Schedule of Internal Risk Tier Categories

The following table presents the amortized cost basis of our credit card portfolio (excluding accrued interest and before the allowance for credit losses) as of the dates indicated based on FICO scores, which are obtained at the origination of the account, and are updated as new credit information is available. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data.

FICO						June 30, 2022						December 31, 2021
≥ 800						$	9,560					$	10,016
780 – 799						8,388						8,624
760 – 779						9,882						9,976
740 – 759						12,289						13,581
720 – 739						16,471						18,358
700 – 719						22,579						22,579
680 – 699						26,430						21,736
660 – 679						26,513						14,044
640 – 659						19,889						1,969
< 640						40,823						707
Total credit card						$	192,824					$	121,590

The following table presents the amortized cost basis of our commercial and consumer banking portfolio (excluding accrued interest and before the allowance for credit losses) by origination year and credit quality indicator as of June 30, 2022:

			Term Loans by Origination Year
			2022						2021						2020						2019						2018						Prior						Total Term Loans						Revolving Loans
Commercial real estate
Pass			$	8,987					$	5,811					$	7,680					$	9,413					$	5,692					$	16,364					$	53,947					$	206
Watch			1,246						1,703						—						2,064						2,146						2,959						10,118						—
Special mention			—						—						—						687						2,263						413						3,363						—
Substandard			—						—						—						—						—						845						845						—
Total commercial real estate			$	10,233					$	7,514					$	7,680					$	12,164					$	10,101					$	20,581					$	68,273					$	206
Commercial and industrial
Pass			$	—					$	15					$	113					$	—					$	103					$	5,093					$	5,324					$	367
Watch			—						—						—						136						—						355						491						26
Special mention			—						—						—						—						—						757						757						—
Substandard			—						—						—						234						165						942						1,341						—
Total commercial and industrial			$	—					$	15					$	113					$	370					$	268					$	7,147					$	7,913					$	393
Residential real estate and other consumer
Pass			$	—					$	—					$	—					$	—					$	—					$	3,307					$	3,307					$	69
Watch			—						—						—						—						—						41						41						—
Total residential real estate and other consumer			$	—					$	—					$	—					$	—					$	—					$	3,348					$	3,348					$	69
Total commercial and consumer banking			$	10,233					$	7,529					$	7,793					$	12,534					$	10,369					$	31,076					$	79,534					$	668

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

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