XML 57 R35.htm IDEA: XBRL DOCUMENT
v3.23.1

Fair Value Measurements (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes, by level within the fair value hierarchy, the estimated fair values of our assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets:
| March 31, 2023 |  | December 31, 2022
| Fair Value |  | Fair Value
| Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments in AFS debt securities(1)(2) | $ | 119,086 |  |  | $ | 55,750 |  |  | $ | — |  |  | $ | 174,836 |  |  | $ | 137,032 |  |  | $ | 58,406 |  |  | $ | — |  |  | $ | 195,438 |
Asset-backed bonds(2)(3) | — |  |  | 142,272 |  |  | — |  |  | 142,272 |  |  | — |  |  | 155,093 |  |  | — |  |  | 155,093 |
Residual investments(2)(3) | — |  |  | — |  |  | 42,960 |  |  | 42,960 |  |  | — |  |  | — |  |  | 46,238 |  |  | 46,238 |
Loans at fair value | — |  |  | — |  |  | 15,858,105 |  |  | 15,858,105 |  |  | — |  |  | — |  |  | 13,557,074 |  |  | 13,557,074 |
Servicing rights | — |  |  | — |  |  | 146,514 |  |  | 146,514 |  |  | — |  |  | — |  |  | 149,854 |  |  | 149,854 |
Third party warrants(4)(5) | — |  |  | — |  |  | 630 |  |  | 630 |  |  | — |  |  | — |  |  | 630 |  |  | 630 |
Derivative assets(4)(6)(7) | — |  |  | 3,474 |  |  | — |  |  | 3,474 |  |  | — |  |  | 24,612 |  |  | — |  |  | 24,612 |
Purchase price earn-out(4)(8) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 54 |  |  | 54 |
IRLCs(4)(9) | — |  |  | — |  |  | 634 |  |  | 634 |  |  | — |  |  | — |  |  | 216 |  |  | 216 |
Student loan commitments(4)(9) | — |  |  | — |  |  | 75 |  |  | 75 |  |  | — |  |  | — |  |  | — |  |  | — |
Interest rate caps(4)(7) | — |  |  | 7,484 |  |  | — |  |  | 7,484 |  |  | — |  |  | 9,178 |  |  | — |  |  | 9,178 |
Digital assets safeguarding asset(4)(10) | — |  |  | 167,954 |  |  | — |  |  | 167,954 |  |  | — |  |  | 106,826 |  |  | — |  |  | 106,826 |
Total assets | $ | 119,086 |  |  | $ | 376,934 |  |  | $ | 16,048,918 |  |  | $ | 16,544,938 |  |  | $ | 137,032 |  |  | $ | 354,115 |  |  | $ | 13,754,066 |  |  | $ | 14,245,213 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt(11) | $ | — |  |  | $ | 74,675 |  |  | $ | — |  |  | $ | 74,675 |  |  | $ | — |  |  | $ | 89,142 |  |  | $ | — |  |  | $ | 89,142 |
Residual interests classified as debt | — |  |  | — |  |  | 15,565 |  |  | 15,565 |  |  | — |  |  | — |  |  | 17,048 |  |  | 17,048 |
Derivative liabilities(4)(6)(7) | — |  |  | 10,849 |  |  | — |  |  | 10,849 |  |  | — |  |  | 9,331 |  |  | — |  |  | 9,331 |
Student loan commitments(4)(9) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 236 |  |  | 236 |
Digital assets safeguarding liability(4)(10) | — |  |  | 167,954 |  |  | — |  |  | 167,954 |  |  | — |  |  | 106,826 |  |  | — |  |  | 106,826 |
Total liabilities | $ | — |  |  | $ | 253,478 |  |  | $ | 15,565 |  |  | $ | 269,043 |  |  | $ | — |  |  | $ | 205,299 |  |  | $ | 17,284 |  |  | $ | 222,583 |
_____________________ (1)The investments in AFS debt securities that were classified as Level 2 rely upon observable inputs other than quoted prices, dealer quotes in markets that are not active and implied pricing derived from new issuances of similar securities. See Note 6. Investment Securities for additional information. (2)These assets are presented within investment securities in the condensed consolidated balance sheets. (3)These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. See Note 7. Securitization and Variable Interest Entities for additional information. We classify asset-backed bonds as Level 2 due to the use of quoted prices for similar assets in markets that are not active, as well as certain factors specific to us. The key inputs used to value the asset-backed bonds include the discount rate and conditional prepayment rate. The fair value of our asset-backed bonds was not materially impacted by default assumptions on the underlying securitization loans, as the subordinate residual interests are expected to absorb all estimated losses based on our default assumptions for the period. We classify the residual investments as Level 3 due to the reliance on significant unobservable valuation inputs. (4)These assets and liabilities are presented within other assets and accounts payable, accruals and other liabilities, respectively, in the condensed consolidated balance sheets. (5)The key unobservable assumption used in the fair value measurement of the third party warrants was the price of the stock underlying the warrants. The fair value was measured as the difference between the stock price and the strike price of the warrants. As the strike price was insignificant, we concluded that the impact of time value on the fair value measure was immaterial. (6)For certain derivative instruments for which an enforceable master netting agreement exists, we elected to net derivative assets and derivative liabilities by counterparty. These instruments are presented on a gross basis herein. See Note 11. Derivative Financial Instruments for additional information. (7)Home loan pipeline hedges represent to-be-announced (“TBA”) securities used as economic hedges of loan fair values and are classified as Level 2, as we rely on quoted market prices from similar loan pools that transact in the marketplace. Interest rate swaps and interest rate caps are classified as Level 2, because these financial instruments do not trade in active markets with observable prices, but rely on observable inputs other than quoted prices. As of March 31, 2023 and December 31, 2022, interest rate swaps and interest rate caps were valued using the overnight SOFR curve and the implied volatilities suggested by the SOFR rate curve. These were determined to be observable inputs from active markets. (8)The purchase price earn-out provision is classified as Level 3 because of our reliance on unobservable inputs related to the underlying loan portfolio performance, such as conditional prepayment rates, annual default rates and discount rates. (9)IRLCs and student loan commitments are classified as Level 3 because of our reliance on assumed loan funding probabilities. The assumed probabilities are based on our internal historical experience with home loans and student loans similar to those in the funding pipelines on the measurement date. (10)The digital assets safeguarding liability and corresponding safeguarding asset are classified as Level 2, because they do not trade in active markets, and are valued using quoted prices on an active exchange that has been identified as the principal market for the underlying digital assets that are being held by our third-party custodians for the benefit of our members. (11)The fair value of our securitization debt was classified as Level 2 and valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. As of March 31, 2023 and December 31, 2022, the unpaid principal related to debt measured at fair value was $82,647 and $98,868, respectively. For the three months ended March 31, 2023, losses from changes in fair value were $944. The estimated amounts of gains (losses) included in earnings attributable to changes in instrument-specific credit risk, which were derived principally from observable changes in credit spread as observed in the bond market, were immaterial.
Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis | The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). We did not have any transfers into or out of Level 3 during the periods presented.
| Fair Value at |  |  |  |  |  | Fair Value at
| January 1, 2023 | Impact on Earnings | Purchases | Sales | Issuances | Settlements | March 31, 2023
Assets |  |  |  |  |  |  |
Personal loans | $ | 8,610,434 |  | $ | 86,094 |  | $ | 40,039 |  | $ | — |  | $ | 2,951,358 |  | $ | (1,150,926) |  | $ | 10,536,999 |
Student loans | 4,877,177 |  | 67,190 |  | — |  | — |  | 525,373 |  | (229,681) |  | 5,240,059 |
Home loans | 69,463 |  | (494) |  | 552 |  | (77,880) |  | 89,787 |  | (381) |  | 81,047 |
Loans at fair value(1) | 13,557,074 |  | 152,790 |  | 40,591 |  | (77,880) |  | 3,566,518 |  | (1,380,988) |  | 15,858,105 |
Servicing rights | 149,854 |  | 12,084 |  | 613 |  | (135) |  | 954 |  | (16,856) |  | 146,514 |
Residual investments(2) | 46,238 |  | 1,104 |  | — |  | (306) |  | — |  | (4,076) |  | 42,960 |
Purchase price earn out | 54 |  | 9 |  | — |  | — |  | — |  | (63) |  | — |
IRLCs(3) | 216 |  | 634 |  | — |  | — |  | — |  | (216) |  | 634 |
Student loan commitments(3) | (236) |  | 75 |  | — |  | — |  | — |  | 236 |  | 75 |
Third party warrants | 630 |  | — |  | — |  | — |  | — |  | — |  | 630 |
Liabilities |  |  |  |  |  |  |
Residual interests classified as debt(2) | (17,048) |  | (89) |  | — |  | — |  | — |  | 1,572 |  | (15,565) |
Net impact on earnings |  | 166,607 |  |  |  |  |  |
| Fair Value at |  |  |  |  |  | Fair Value at
| January 1, 2022 | Impact on Earnings | Purchases | Sales | Issuances | Settlements | March 31, 2022
Assets |  |  |  |  |  |  |
Personal loans | $ | 2,289,426 |  | $ | (7,016) |  | $ | 160,748 |  | $ | (977,920) |  | $ | 2,026,004 |  | $ | (372,454) |  | $ | 3,118,788 |
Student loans | 3,450,837 |  | (42,370) |  | 116,433 |  | (544,150) |  | 983,804 |  | (227,115) |  | 3,737,439 |
Home loans | 212,709 |  | (9,162) |  | 498 |  | (365,370) |  | 312,383 |  | (4,400) |  | 146,658 |
Loans at fair value(1) | 5,952,972 |  | (58,548) |  | 277,679 |  | (1,887,440) |  | 3,322,191 |  | (603,969) |  | 7,002,885 |
Servicing rights | 168,259 |  | 11,580 |  | 629 |  | (1,410) |  | 16,486 |  | (22,039) |  | 173,505 |
Residual investments(2) | 121,019 |  | 762 |  | — |  | — |  | — |  | (15,104) |  | 106,677 |
Purchase price earn out | 4,272 |  | 830 |  | — |  | — |  | — |  | (2,817) |  | 2,285 |
Student loan commitments(3) | 2,220 |  | 23 |  | — |  | — |  | — |  | (2,220) |  | 23 |
Third party warrants | 1,369 |  | (142) |  | — |  | — |  | — |  | — |  | 1,227 |
Liabilities |  |  |  |  |  |  |
Residual interests classified as debt(2) | (93,682) |  | (2,963) |  | — |  | — |  | — |  | 26,113 |  | (70,532) |
IRLCs(3) | 3,759 |  | (3,039) |  | — |  | — |  | — |  | (3,759) |  | (3,039) |
Net impact on earnings |  | (51,497) |  |  |  |  |  |
_____________________ (1)For loans at fair value, issuances represent the principal balance of loans originated during the period. Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three months ended March 31, 2023 and 2022 included securitization clean-up calls of $39,936 and $275,499, respectively. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Gains and losses recognized in earnings include changes in accumulated interest and fair value adjustments on loans originated during the period and on loans held at the balance sheet date, as well as loan charge-offs. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains (losses) included in earnings attributable to changes in instrument-specific credit risk were $(50,529) and $6,496 during the three months ended March 31, 2023 and 2022, respectively. The gains (losses) attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument. (2)For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, we record changes in fair value within noninterest income—securitizations in the condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively. (3)For IRLCs and student loan commitments, settlements reflect funded and unfunded adjustments representing the unpaid principal balance of funded and unfunded loans during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. For year-to-date periods, amounts represent the summation of the per-quarter effects. Changes in fair value are recorded within noninterest income—loan origination and sales in the condensed consolidated statements of operations and comprehensive income (loss).
Schedule of Changes in Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). We did not have any transfers into or out of Level 3 during the periods presented.
| Fair Value at |  |  |  |  |  | Fair Value at
| January 1, 2023 | Impact on Earnings | Purchases | Sales | Issuances | Settlements | March 31, 2023
Assets |  |  |  |  |  |  |
Personal loans | $ | 8,610,434 |  | $ | 86,094 |  | $ | 40,039 |  | $ | — |  | $ | 2,951,358 |  | $ | (1,150,926) |  | $ | 10,536,999 |
Student loans | 4,877,177 |  | 67,190 |  | — |  | — |  | 525,373 |  | (229,681) |  | 5,240,059 |
Home loans | 69,463 |  | (494) |  | 552 |  | (77,880) |  | 89,787 |  | (381) |  | 81,047 |
Loans at fair value(1) | 13,557,074 |  | 152,790 |  | 40,591 |  | (77,880) |  | 3,566,518 |  | (1,380,988) |  | 15,858,105 |
Servicing rights | 149,854 |  | 12,084 |  | 613 |  | (135) |  | 954 |  | (16,856) |  | 146,514 |
Residual investments(2) | 46,238 |  | 1,104 |  | — |  | (306) |  | — |  | (4,076) |  | 42,960 |
Purchase price earn out | 54 |  | 9 |  | — |  | — |  | — |  | (63) |  | — |
IRLCs(3) | 216 |  | 634 |  | — |  | — |  | — |  | (216) |  | 634 |
Student loan commitments(3) | (236) |  | 75 |  | — |  | — |  | — |  | 236 |  | 75 |
Third party warrants | 630 |  | — |  | — |  | — |  | — |  | — |  | 630 |
Liabilities |  |  |  |  |  |  |
Residual interests classified as debt(2) | (17,048) |  | (89) |  | — |  | — |  | — |  | 1,572 |  | (15,565) |
Net impact on earnings |  | 166,607 |  |  |  |  |  |
| Fair Value at |  |  |  |  |  | Fair Value at
| January 1, 2022 | Impact on Earnings | Purchases | Sales | Issuances | Settlements | March 31, 2022
Assets |  |  |  |  |  |  |
Personal loans | $ | 2,289,426 |  | $ | (7,016) |  | $ | 160,748 |  | $ | (977,920) |  | $ | 2,026,004 |  | $ | (372,454) |  | $ | 3,118,788 |
Student loans | 3,450,837 |  | (42,370) |  | 116,433 |  | (544,150) |  | 983,804 |  | (227,115) |  | 3,737,439 |
Home loans | 212,709 |  | (9,162) |  | 498 |  | (365,370) |  | 312,383 |  | (4,400) |  | 146,658 |
Loans at fair value(1) | 5,952,972 |  | (58,548) |  | 277,679 |  | (1,887,440) |  | 3,322,191 |  | (603,969) |  | 7,002,885 |
Servicing rights | 168,259 |  | 11,580 |  | 629 |  | (1,410) |  | 16,486 |  | (22,039) |  | 173,505 |
Residual investments(2) | 121,019 |  | 762 |  | — |  | — |  | — |  | (15,104) |  | 106,677 |
Purchase price earn out | 4,272 |  | 830 |  | — |  | — |  | — |  | (2,817) |  | 2,285 |
Student loan commitments(3) | 2,220 |  | 23 |  | — |  | — |  | — |  | (2,220) |  | 23 |
Third party warrants | 1,369 |  | (142) |  | — |  | — |  | — |  | — |  | 1,227 |
Liabilities |  |  |  |  |  |  |
Residual interests classified as debt(2) | (93,682) |  | (2,963) |  | — |  | — |  | — |  | 26,113 |  | (70,532) |
IRLCs(3) | 3,759 |  | (3,039) |  | — |  | — |  | — |  | (3,759) |  | (3,039) |
Net impact on earnings |  | (51,497) |  |  |  |  |  |
_____________________ (1)For loans at fair value, issuances represent the principal balance of loans originated during the period. Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three months ended March 31, 2023 and 2022 included securitization clean-up calls of $39,936 and $275,499, respectively. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Gains and losses recognized in earnings include changes in accumulated interest and fair value adjustments on loans originated during the period and on loans held at the balance sheet date, as well as loan charge-offs. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains (losses) included in earnings attributable to changes in instrument-specific credit risk were $(50,529) and $6,496 during the three months ended March 31, 2023 and 2022, respectively. The gains (losses) attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument. (2)For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, we record changes in fair value within noninterest income—securitizations in the condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively. (3)For IRLCs and student loan commitments, settlements reflect funded and unfunded adjustments representing the unpaid principal balance of funded and unfunded loans during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. For year-to-date periods, amounts represent the summation of the per-quarter effects. Changes in fair value are recorded within noninterest income—loan origination and sales in the condensed consolidated statements of operations and comprehensive income (loss).
Schedule of Valuation Inputs and Assumptions | The following key unobservable assumptions were used in the fair value measurement of our loans:
| March 31, 2023 |  | December 31, 2022 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
Personal loans |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 14.0% – 24.2% |  | 19.1% |  | 17.3% – 25.5% |  | 19.1% |  |  |  |
Annual default rate | 3.2% – 52.8% |  | 4.6% |  | 3.8% – 37.7% |  | 4.4% |  |  |  |
Discount rate | 5.2% – 8.6% |  | 5.5% |  | 5.4% – 8.3% |  | 6.1% |  |  |  |
Student loans |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 8.5% – 12.9% |  | 10.4% |  | 16.3% – 21.8% |  | 20.4% |  |  |  |
Annual default rate | 0.2% – 4.3% |  | 0.4% |  | 0.2% – 4.5% |  | 0.5% |  |  |  |
Discount rate | 3.7% – 8.1% |  | 4.1% |  | 3.6% – 8.7% |  | 4.0% |  |  |  |
Home loans |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 2.1% – 13.4% |  | 8.9% |  | 2.0% – 10.2% |  | 7.0% |  |  |  |
Annual default rate | 0.1% – 0.9% |  | 0.1% |  | 0.1% – 1.3% |  | 0.1% |  |  |  |
Discount rate | 5.6% – 14.5% |  | 6.0% |  | 5.7% – 14.1% |  | 5.9% |  |  |  |
The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights:
| March 31, 2023 |  | December 31, 2022 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
Personal loans |  |  |  |  |  |  |  |  |  |  |
Market servicing costs | 0.2% – 0.6% |  | 0.3% |  | 0.2% – 0.5% |  | 0.3% |  |  |  |
Conditional prepayment rate | 18.2% – 28.9% |  | 22.8% |  | 17.9% – 31.3% |  | 22.7% |  |  |  |
Annual default rate | 3.5% – 17.5% |  | 5.7% |  | 3.4% – 7.9% |  | 4.9% |  |  |  |
Discount rate | 7.8% – 7.8% |  | 7.8% |  | 7.8% – 7.8% |  | 7.8% |  |  |  |
Student loans |  |  |  |  |  |  |  |  |  |  |
Market servicing costs | 0.1% – 0.2% |  | 0.1% |  | 0.1% – 0.2% |  | 0.1% |  |  |  |
Conditional prepayment rate | 9.1% – 15.3% |  | 12.5% |  | 15.4% – 21.9% |  | 17.8% |  |  |  |
Annual default rate | 0.3% – 3.7% |  | 0.5% |  | 0.3% – 4.3% |  | 0.4% |  |  |  |
Discount rate | 7.8% – 7.8% |  | 7.8% |  | 7.8% – 7.8% |  | 7.8% |  |  |  |
Home loans |  |  |  |  |  |  |  |  |  |  |
Market servicing costs | 0.1% – 0.1% |  | 0.1% |  | 0.1% – 0.1% |  | 0.1% |  |  |  |
Conditional prepayment rate | 4.9% – 12.3% |  | 5.5% |  | 4.9% – 11.0% |  | 5.2% |  |  |  |
Annual default rate | 0.1% – 0.2% |  | 0.1% |  | 0.1% – 0.1% |  | 0.1% |  |  |  |
Discount rate | 9.0% – 9.0% |  | 9.0% |  | 9.0% – 9.0% |  | 9.0% |  |  |  |
The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt:
| March 31, 2023 |  | December 31, 2022 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
Residual investments |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 12.7% – 25.2% |  | 14.4% |  | 17.9% – 32.0% |  | 19.9% |  |  |  |
Annual default rate | 0.4% – 5.8% |  | 1.1% |  | 0.4% – 5.4% |  | 1.1% |  |  |  |
Discount rate | 5.0% – 10.0% |  | 6.9% |  | 4.8% – 10.5% |  | 6.7% |  |  |  |
Residual interests classified as debt |  |  |  |  |  |  |  |  |  |  |
Conditional prepayment rate | 12.5% – 13.1% |  | 12.6% |  | 17.2% – 18.1% |  | 17.8% |  |  |  |
Annual default rate | 0.6% – 0.8% |  | 0.6% |  | 0.6% – 0.8% |  | 0.7% |  |  |  |
Discount rate | 7.8% – 7.8% |  | 7.8% |  | 7.5% – 7.5% |  | 7.5% |  |  |  |
The following key unobservable inputs were used in the fair value measurements of our IRLCs and student loan commitments:
| March 31, 2023 |  | December 31, 2022 |  |
| Range |  | Weighted Average |  | Range |  | Weighted Average |  |  |  |
IRLCs |  |  |  |  |  |  |  |  |  |  |
Loan funding probability(1) | 2.6% – 58.5% |  | 57.8% |  | 11.1% – 58.6% |  | 46.3% |  |  |  |
Student loan commitments |  |  |  |  |  |  |  |  |  |  |
Loan funding probability(1) | 95.0% – 95.0% |  | 95.0% |  | 95.0% – 95.0% |  | 95.0% |  |  |  |
___________________ (1)The aggregate amount of student loans we committed to fund was $4,842 as of March 31, 2023. See Note 11. Derivative Financial Instruments for the aggregate notional amount associated with IRLCs.
Schedule of Sensitivity Analysis for Servicing Rights | The following table presents the estimated decrease to the fair value of our servicing rights if the key assumptions had each of the below adverse changes:
| March 31, 2023 |  | December 31, 2022
Market servicing costs |  |  |
2.5 basis points increase | $ | (10,615) |  |  | $ | (10,395) |
5.0 basis points increase | (21,230) |  |  | (20,807) |
Conditional prepayment rate |  |  |
10% increase | $ | (3,592) |  |  | $ | (4,036) |
20% increase | (7,011) |  |  | (7,833) |
Annual default rate |  |  |
10% increase | $ | (163) |  |  | $ | (166) |
20% increase | (326) |  |  | (331) |
Discount rate |  |  |
100 basis points increase | $ | (4,093) |  |  | $ | (3,905) |
200 basis points increase | (7,921) |  |  | (7,562) |
Schedule of Safeguarding Assets and Liabilities | The following table presents the significant digital assets held by our third-party custodians on behalf of our members:
| March 31, 2023 |  | December 31, 2022
Bitcoin (BTC) | $ | 76,729 |  |  | $ | 44,346 |
Ethereum (ETH) | 55,026 |  |  | 37,826 |
Cardano (ADA) | 8,403 |  |  | 5,217 |
Dogecoin (DOGE) | 5,483 |  |  | 4,784 |
Solana (SOL) | 3,432 |  |  | 1,588 |
Litecoin (LTC) | 3,165 |  |  | 2,492 |
Ethereum Classic (ETC) | 2,957 |  |  | 2,333 |
All other(1) | 12,759 |  |  | 8,240 |
Digital assets safeguarding liability and corresponding safeguarding asset | $ | 167,954 |  |  | $ | 106,826 |
___________________ (1)Includes 23 and 23 digital assets as of March 31, 2023 and December 31, 2022, respectively, none of which were determined to be individually significant.
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value | The following table summarizes the carrying values and estimated fair values, by level within the fair value hierarchy, of our assets and liabilities that are not measured at fair value on a recurring basis in the condensed consolidated balance sheets:
|  |  | Fair Value
| Carrying Value |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
March 31, 2023 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents(1) | $ | 2,487,778 |  |  | $ | 2,487,778 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,487,778 |
Restricted cash and restricted cash equivalents(1) | 489,736 |  |  | 489,736 |  |  | — |  |  | — |  |  | 489,736 |
Loans at amortized cost(2) | 328,029 |  |  | — |  |  | — |  |  | 348,885 |  |  | 348,885 |
Other investments(3) | 33,503 |  |  | — |  |  | 33,503 |  |  | — |  |  | 33,503 |
Total assets | $ | 3,339,046 |  |  | $ | 2,977,514 |  |  | $ | 33,503 |  |  | $ | 348,885 |  |  | $ | 3,359,902 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits(4) | $ | 10,088,441 |  |  | $ | — |  |  | $ | 10,087,506 |  |  | $ | — |  |  | $ | 10,087,506 |
Debt(5) | 6,050,826 |  |  | 847,511 |  |  | 4,874,094 |  |  | — |  |  | 5,721,605 |
Total liabilities | $ | 16,139,267 |  |  | $ | 847,511 |  |  | $ | 14,961,600 |  |  | $ | — |  |  | $ | 15,809,111 |
December 31, 2022 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Cash and cash equivalents(1) | $ | 1,421,907 |  |  | $ | 1,421,907 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,421,907 |
Restricted cash and restricted cash equivalents(1) | 424,395 |  |  | 424,395 |  |  | — |  |  | — |  |  | 424,395 |
Loans at amortized cost(2) | 307,957 |  |  | — |  |  | — |  |  | 328,775 |  |  | 328,775 |
Other investments(3) | 28,651 |  |  | — |  |  | 28,651 |  |  | — |  |  | 28,651 |
Total assets | $ | 2,182,910 |  |  | $ | 1,846,302 |  |  | $ | 28,651 |  |  | $ | 328,775 |  |  | $ | 2,203,728 |
Liabilities |  |  |  |  |  |  |  |  |
Deposits(4) | $ | 7,342,296 |  |  | $ | — |  |  | $ | 7,340,160 |  |  | $ | — |  |  | $ | 7,340,160 |
Debt(5) | 5,396,740 |  |  | 826,242 |  |  | 4,219,574 |  |  | — |  |  | 5,045,816 |
Total liabilities | $ | 12,739,036 |  |  | $ | 826,242 |  |  | $ | 11,559,734 |  |  | $ | — |  |  | $ | 12,385,976 |
___________________ (1)The carrying amounts of our cash and cash equivalents and restricted cash and restricted cash equivalents approximate their fair values due to the short-term maturities and highly liquid nature of these accounts. (2)The fair value of our credit cards was determined using a discounted cash flow model with key inputs relating to weighted average lives, expected lifetime loss rates and discount rate. The fair value of our commercial and consumer banking loans was determined using a discounted cash flow model with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults. (3)Other investments include Federal Reserve Bank (“FRB”) stock and FHLB stock, which are presented within other assets in the condensed consolidated balance sheets. (4)The fair values of our deposits without contractually defined maturities (such as demand and savings deposits) and our noninterest-bearing deposits approximate the carrying values. The fair value of our time-based deposits was determined using a discounted cash flow model based on rates currently offered for deposits of similar remaining maturities. (5)The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt and revolving credit facility debt were classified as Level 2 and based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was classified as Level 2 and valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments.

X
- References No definition available. + Details
Name: | srt-supplement_PlatformOperatorCryptoAssetTableTextBlock
Namespace Prefix: | srt-supplement_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about fair value of asset and liability not measured at fair value. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2E -URI https://asc.fasb.org/extlink&oid=126976982&loc=SL7498357-110258 + Details
Name: | us-gaap_FairValueDisclosureOfAssetAndLiabilityNotMeasuredAtFairValueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes 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 liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 + Details
Name: | us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=121570589&loc=d3e107314-111719 + Details
Name: | us-gaap_ScheduleOfSensitivityAnalysisOfFairValueOfInterestsContinuedToBeHeldByTransferorServicingAssetsOrServicingLiabilitiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration