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Loans
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Loans Loans
As of March 31, 2023, our loan portfolio consisted of loans held for sale, including personal loans, student loans and home loans, which are measured at fair value under the fair value option, and loans held for investment, including credit cards, and commercial and consumer banking loans, which are measured at amortized cost. 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:
March 31,
2023		December 31,
2022
Loans held for sale
Personal loans(1)
$10,536,999 $8,610,434 
Student loans(2)
5,240,059 4,877,177 
Home loans
81,047 69,463 
Total loans held for sale, at fair value15,858,105 13,557,074 
Loans held for investment(3)
Credit card(4)
216,914 209,164 
Commercial and consumer banking:
Commercial real estate101,453 88,652 
Commercial and industrial6,659 7,179 
Residential real estate and other consumer3,003 2,962 
Total commercial and consumer banking111,115 98,793 
Total loans held for investment, at amortized cost328,029 307,957 
Total loans
$16,186,134 $13,865,031 
_____________________
(1) Includes $962,476 and $663,004 of personal loans in consolidated VIEs as of March 31, 2023 and December 31, 2022, respectively.
(2) Includes $201,988 and $268,697 of student loans in consolidated VIEs as of March 31, 2023 and December 31, 2022, respectively.
(3) See Note 5. Allowance for Credit Losses for additional information on our loans at amortized cost as it pertains to the allowance for credit losses.
(4) For credit cards, loan origination costs are expensed as incurred primarily within noninterest expense—sales and marketing in the condensed consolidated statements of operations and comprehensive income (loss).

Loans Held for Sale
The following table summarizes the aggregate fair value of our loans held for sale, for which we elected the fair value option and are, therefore, measured at fair value on a recurring basis. See Note 12. Fair Value Measurements for the assumptions used in our fair value model.
Personal Loans
Student Loans
Home Loans
Total
March 31, 2023
Unpaid principal
$10,039,769 $5,086,953 $89,782 $15,216,504 
Accumulated interest
69,049 20,787 162 89,998 
Cumulative fair value adjustments(1)
428,181 132,319 (8,897)551,603 
Total fair value of loans(2)
$10,536,999 $5,240,059 $81,047 $15,858,105 
December 31, 2022
Unpaid principal
$8,283,400 $4,794,517 $77,705 $13,155,622 
Accumulated interest
55,673 19,433 151 75,257 
Cumulative fair value adjustments(1)
271,361 63,227 (8,393)326,195 
Total fair value of loans(2)
$8,610,434 $4,877,177 $69,463 $13,557,074 
__________________
(1) The increase in cumulative fair value adjustments for personal loans during the three months ended March 31, 2023 was primarily attributable to higher origination volume and higher coupon rates, while the increase for student loans was primarily attributable to lower prepayment assumptions and higher coupon rates.
(2) Each component of the fair value of loans is impacted by charge-offs during the period. Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due.
The following table summarizes the aggregate fair value of loans 90 days or more delinquent. 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.
Personal Loans
Student Loans
Total
March 31, 2023
Unpaid principal balance
$37,754 $5,968 $43,722 
Accumulated interest
1,731 306 2,037 
Cumulative fair value adjustments(1)
(34,219)(3,283)(37,502)
Fair value of loans 90 days or more delinquent$5,266 $2,991 $8,257 
December 31, 2022
Unpaid principal balance$27,989 $6,435 $34,424 
Accumulated interest1,207 304 1,511 
Cumulative fair value adjustments(1)
(25,022)(3,332)(28,354)
Fair value of loans 90 days or more delinquent$4,174 $3,407 $7,581 
__________________
(1) Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due.
Transfers of Financial Assets
We regularly transfer financial assets and account for such transfers as either sales or secured borrowings depending on the facts and circumstances of the transfer. When a transfer of financial assets qualifies as a sale, in many instances we have continued involvement as the servicer of those financial assets. As we expect the benefits of servicing to be more than just adequate, we recognize a servicing asset. Further, in the case of securitization-related transfers that qualify as sales, we have additional continued involvement as an investor, albeit at insignificant levels relative to the expected gains and losses of the securitization. In instances where a transfer is accounted for as a secured borrowing, we perform servicing (but we do not recognize a servicing asset) and typically maintain a significant investment relative to the expected gains and losses of the securitization. In whole loan sales, we do not have a residual financial interest in the loans, nor do we have any other power over the loans that would constrain us from recognizing a sale. Additionally, we have no repurchase requirements related to transfers of personal loans, student loans and non-Government-Sponsored Enterprise (“GSE”) home loans other than standard origination representations and warranties, for which we record a liability based on expected repurchase obligations. For GSE home loans, we have customary GSE repurchase requirements, which do not constrain sale treatment but result in a liability for the expected repurchase requirement.
There were no loan securitization transfers qualifying for sale accounting treatment during the three months ended March 31, 2023 and 2022.
Deconsolidation of debt reflects the impacts of previously consolidated VIEs that became deconsolidated during the period because we no longer hold a significant financial interest in the underlying securitization entity, which can fluctuate from period to period. Gains and losses on deconsolidations are presented within noninterest income—securitizations in the condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2023, we did not have any deconsolidations of debt.
The following table summarizes our whole loan sales:
Three Months Ended March 31,
20232022
Personal loans
Fair value of consideration received:
Cash$— $1,018,689 
Servicing assets recognized— 6,424 
Repurchase liabilities recognized— (2,298)
Total consideration received
— 1,022,815 
Aggregate unpaid principal balance and accrued interest of loans sold
— 981,855 
Gain from loan sales$— $40,960 
Student loans
Fair value of consideration received:
Cash$— $548,911 
Servicing assets recognized— 5,824 
Repurchase liabilities recognized— (80)
Total consideration— 554,655 
Aggregate unpaid principal balance and accrued interest of loans sold
— 546,287 
Gain from loan sales$— $8,368 
Home loans
Fair value of consideration received:
Cash$77,819 $359,700 
Servicing assets recognized954 4,238 
Repurchase liabilities recognized(96)(420)
Total consideration
78,677 363,518 
Aggregate unpaid principal balance and accrued interest of loans sold
77,976 365,560 
Gain (loss) from loan sales$701 $(2,042)
The following table presents information about the unpaid principal balances of transferred loans that are not recorded in our condensed consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements:
Personal Loans
Student Loans
Home Loans
Total
March 31, 2023
Loans in delinquency
$130,475 $105,250 $15,677 $251,402 
Total loans serviced(1)
2,884,653 7,173,819 5,118,433 15,176,905 
December 31, 2022
Loans in delinquency
$136,179 $115,818 $16,510 $268,507 
Total loans serviced(1)
3,402,795 7,586,031 5,134,306 16,123,132 
_____________________
(1)Total loans serviced includes loans in delinquency, as well as loans in repayment, loans in-school/grace period/deferment (related to student loans), and loans in forbearance. The vast majority of total loans serviced represent loans in repayment as of the dates indicated.
The following table presents additional information about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement:
Three Months Ended March 31,
20232022
Personal loans
Servicing fees collected
$7,193 $8,637 
Charge-offs, net of recoveries(1)
57,442 17,138 
Student loans
Servicing fees collected
9,190 9,168 
Charge-offs, net of recoveries(1)
9,153 8,220 
Home loans
Servicing fees collected
3,160 2,636 
Charge-offs, net of recoveries
— — 
Total
Servicing fees collected
$19,543 $20,441 
Charge-offs, net of recoveries(1)
66,595 25,358 
_____________________
(1)Personal loan and student loan charge-offs, net of recoveries, are impacted by the timing of charge-off sales performed on behalf of the purchasers of our loans, which lower the net amount disclosed.
Loans Held for Investment
Loan Portfolio Composition and Aging
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:
Delinquent Loans
Current30–59 Days60–89 Days
≥ 90 Days(1)
Total Delinquent Loans
Total Loans(2)
March 31, 2023
Credit card$231,057 $4,267 $3,332 $10,833 $18,432 $249,489 
Commercial and consumer banking:
Commercial real estate102,390 — — — — 102,390 
Commercial and industrial6,868 4 337 — 341 7,209 
Residential real estate and other consumer(3)
3,001 — — — — 3,001 
Total commercial and consumer banking112,259 4 337 — 341 112,600 
Total loans
$343,316 $4,271 $3,669 $10,833 $18,773 $362,089 
December 31, 2022
Credit card$225,165 $4,670 $3,626 $10,498 $18,794 $243,959 
Commercial and consumer banking:
Commercial real estate89,544 — — — — 89,544 
Commercial and industrial7,636 — 1 — 1 7,637 
Residential real estate and other consumer(3)
2,966 — — — — 2,966 
Total commercial and consumer banking100,146 — 1 — 1 100,147 
Total loans$325,311 $4,670 $3,627 $10,498 $18,795 $344,106 
_______________
(1)All of the credit cards ≥ 90 days past due continued to accrue interest. As of the dates indicated, there were no credit cards on nonaccrual status. As of the dates indicated, 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 $37,089 and $39,110 as of March 31, 2023 and December 31, 2022, respectively, and accrued interest of $4,514 and $4,315, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,848 and $1,678, respectively, and accrued interest of $363 and $324, respectively.
(3)Primarily includes residential real estate loans acquired in the Bank Merger, for which we did not elect the fair value option.
Credit Quality Indicators
Credit Card
The following table presents the amortized cost basis of our credit card portfolio (excluding accrued interest and before the allowance for credit losses) based on FICO scores, which are obtained at origination of the account and are refreshed monthly thereafter. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data.
FICOMarch 31, 2023December 31, 2022
≥ 800$16,835 $14,421 
780 – 79911,895 11,327 
760 – 77913,394 12,179 
740 – 75915,373 14,501 
720 – 73919,966 19,343 
700 – 71926,790 26,239 
680 – 69931,887 31,543 
660 – 67931,779 31,958 
640 – 65924,765 25,959 
620 – 63915,036 15,566 
600 – 6199,215 8,968 
≤ 59932,554 31,955 
Total credit card$249,489 $243,959 
Commercial and Consumer Banking
We analyze loans in our commercial and consumer banking portfolio by classification based on their associated credit risk, and perform an analysis on an ongoing basis as new information is obtained. Risk rating classifications are further described below. Loans with a lower expectation of credit losses are classified as Pass, while loans with a higher expectation of credit losses are classified as Substandard.
•Pass — Loans that management believes will fully repay in accordance with the contractual loan terms.
•Watch —  Loans that management believes will fully repay in accordance with the contractual loan terms, but for which certain credit attributes have changed from origination and warrant further monitoring.
•Special mention — Loans with a potential weakness or weaknesses that deserves management’s close attention. If left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the loan or our credit position at some future date.
•Substandard — Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the full repayment. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.
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:
Term Loans by Origination Year
March 31, 202320232022202120202019PriorTotal Term LoansRevolving Loans
Commercial real estate
Pass$13,011 $34,387 $5,725 $6,278 $10,178 $19,081 $88,660 $196 
Watch1,247 4,643 1,676 — 223 2,808 10,597 — 
Special mention— — — — 673 1,596 2,269 — 
Substandard— — — — — 668 668 — 
Total commercial real estate14,258 39,030 7,401 6,278 11,074 24,153 102,194 196 
Commercial and industrial
Pass30 — — 75 — 5,430 5,535 215 
Watch— — — — 127 33 160 24 
Substandard— — — — — 1,275 1,275 — 
Total commercial and industrial30 — — 75 127 6,738 6,970 239 
Residential real estate and other consumer
Pass— — — — — 2,894 2,894 65 
Watch— — — — — 41 41 1 
Total residential real estate and other consumer— — — — — 2,935 2,935 66 
Total commercial and consumer banking
$14,288 $39,030 $7,401 $6,353 $11,201 $33,826 $112,099 $501