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Loans (Tables)

3 Months Ended

Mar. 31, 2023

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:

			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 value			15,858,105						13,557,074
Loans held for investment(3)
Credit card(4)			216,914						209,164
Commercial and consumer banking:
Commercial real estate			101,453						88,652
Commercial and industrial			6,659						7,179
Residential real estate and other consumer			3,003						2,962
Total commercial and consumer banking			111,115						98,793
Total loans held for investment, at amortized cost			328,029						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).

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 interest			1,207						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.

Schedule of Whole Loan Sales

The following table summarizes our whole loan sales:

									Three Months Ended March 31,
															2023						2022
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 recognized															954						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)

Schedule of Transferred Loans with Continued Involvement but Not Recorded on Consolidated Balance Sheet and Cash Flows Received

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,
															2023						2022
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.

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:

									Delinquent Loans
			Current						30–59 Days						60–89 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 estate			102,390						—						—						—						—						102,390
Commercial and industrial			6,868						4						337						—						341						7,209
Residential real estate and other consumer(3)			3,001						—						—						—						—						3,001
Total commercial and consumer banking			112,259						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 estate			89,544						—						—						—						—						89,544
Commercial and industrial			7,636						—						1						—						1						7,637
Residential real estate and other consumer(3)			2,966						—						—						—						—						2,966
Total commercial and consumer banking			100,146						—						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.

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) 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.

FICO						March 31, 2023						December 31, 2022
≥ 800						$	16,835					$	14,421
780 – 799						11,895						11,327
760 – 779						13,394						12,179
740 – 759						15,373						14,501
720 – 739						19,966						19,343
700 – 719						26,790						26,239
680 – 699						31,887						31,543
660 – 679						31,779						31,958
640 – 659						24,765						25,959
620 – 639						15,036						15,566
600 – 619						9,215						8,968
≤ 599						32,554						31,955
Total credit card						$	249,489					$	243,959

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, 2023						2023						2022						2021						2020						2019						Prior						Total Term Loans						Revolving Loans
Commercial real estate
Pass						$	13,011					$	34,387					$	5,725					$	6,278					$	10,178					$	19,081					$	88,660					$	196
Watch						1,247						4,643						1,676						—						223						2,808						10,597						—
Special mention						—						—						—						—						673						1,596						2,269						—
Substandard						—						—						—						—						—						668						668						—
Total commercial real estate						14,258						39,030						7,401						6,278						11,074						24,153						102,194						196
Commercial and industrial
Pass						30						—						—						75						—						5,430						5,535						215
Watch						—						—						—						—						127						33						160						24
Substandard						—						—						—						—						—						1,275						1,275						—
Total commercial and industrial						30						—						—						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

X

- Definition

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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