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Loans (Tables) | 9 Months Ended
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Sep. 30, 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:
| September 30, 2023 |  | December 31, 2022
Loans held for sale |  |  |
Personal loans(1) | $ | 14,850,996 |  |  | $ | 8,610,434 |
Student loans(2) | 6,041,544 |  |  | 4,877,177 |
Home loans | 101,296 |  |  | 69,463 |
Total loans held for sale, at fair value | 20,993,836 |  |  | 13,557,074 |
Loans held for investment(3) |  |  |
Credit card(4) | 247,241 |  |  | 209,164 |
Commercial and consumer banking: |  |  |
Commercial real estate | 104,743 |  |  | 88,652 |
Commercial and industrial | 5,917 |  |  | 7,179 |
Residential real estate and other consumer | 3,347 |  |  | 2,962 |
Total commercial and consumer banking | 114,007 |  |  | 98,793 |
Total loans held for investment, at amortized cost | 361,248 |  |  | 307,957 |
Total loans | $ | 21,355,084 |  |  | $ | 13,865,031 |
_____________________ (1) Includes $618,829 and $663,004 of personal loans in consolidated VIEs as of September 30, 2023 and December 31, 2022, respectively. (2) Includes $275,244 and $268,697 of student loans in consolidated VIEs as of September 30, 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 loss. The following table summarizes the aggregate fair value of our loans held for sale, for which we elected the fair value option. See Note 12. Fair Value Measurements for the assumptions used in our fair value model.
| Personal Loans |  | Student Loans |  | Home Loans |  | Total
September 30, 2023 |  |  |  |  |  |  |
Unpaid principal | $ | 14,177,004 |  |  | $ | 5,929,047 |  |  | $ | 110,320 |  |  | $ | 20,216,371 |
Accumulated interest | 105,156 |  |  | 26,497 |  |  | 163 |  |  | 131,816 |
Cumulative fair value adjustments(1) | 568,836 |  |  | 86,000 |  |  | (9,187) |  |  | 645,649 |
Total fair value of loans(2) | $ | 14,850,996 |  |  | $ | 6,041,544 |  |  | $ | 101,296 |  |  | $ | 20,993,836 |
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) During the nine months ended September 30, 2023, the cumulative fair value adjustments for personal loans were primarily impacted by higher origination volume and higher coupon rates, partially offset by higher benchmark 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.
| Personal Loans |  | Student Loans |  | Home Loans |  | Total
September 30, 2023 |  |  |  |  |  |  |
Unpaid principal balance | $ | 68,432 |  |  | $ | 8,502 |  |  | $ | 213 |  |  | $ | 77,147 |
Accumulated interest | 3,400 |  |  | 335 |  |  | — |  |  | 3,735 |
Cumulative fair value adjustments(1) | (58,676) |  |  | (5,104) |  |  | (140) |  |  | (63,920) |
Fair value of loans 90 days or more delinquent | $ | 13,156 |  |  | $ | 3,733 |  |  | $ | 73 |  |  | $ | 16,962 |
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 September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Personal loans |  |  |  |  |  |  |
Fair value of consideration received: |  |  |  |  |  |  |
Cash | $ | 15,098 |  |  | $ | 773,005 |  |  | $ | 66,571 |  |  | $ | 2,954,723 |
Servicing assets recognized | 767 |  |  | 6,789 |  |  | 1,655 |  |  | 20,872 |
Repurchase liabilities recognized | (45) |  |  | (2,074) |  |  | (405) |  |  | (7,161) |
Total consideration received | 15,820 |  |  | 777,720 |  |  | 67,821 |  |  | 2,968,434 |
Aggregate unpaid principal balance and accrued interest of loans sold | 15,098 |  |  | 753,259 |  |  | 65,420 |  |  | 2,864,351 |
Gain from loan sales | $ | 722 |  |  | $ | 24,461 |  |  | $ | 2,401 |  |  | $ | 104,083 |
Sale execution(1) | 105.1 | % |  | 103.5 | % |  | 104.3 | % |  | 103.9 | %
Student loans |  |  |  |  |  |  |
Fair value of consideration received: |  |  |  |  |  |  |
Cash | $ | — |  |  | $ | 77,089 |  |  | $ | 98,624 |  |  | $ | 883,859 |
Servicing assets recognized | — |  |  | 460 |  |  | 2,792 |  |  | 9,275 |
Repurchase liabilities recognized | — |  |  | (13) |  |  | (16) |  |  | (134) |
Total consideration | — |  |  | 77,536 |  |  | 101,400 |  |  | 893,000 |
Aggregate unpaid principal balance and accrued interest of loans sold | — |  |  | 74,311 |  |  | 99,916 |  |  | 881,922 |
Gain from loan sales | $ | — |  |  | $ | 3,225 |  |  | $ | 1,484 |  |  | $ | 11,078 |
Sale execution(1) | — | % |  | 104.4 | % |  | 101.5 | % |  | 101.3 | %
Home loans |  |  |  |  |  |  |
Fair value of consideration received: |  |  |  |  |  |  |
Cash | $ | 331,364 |  |  | $ | 244,788 |  |  | $ | 676,235 |  |  | $ | 926,707 |
Servicing assets recognized | 3,376 |  |  | 3,432 |  |  | 7,133 |  |  | 12,152 |
Repurchase liabilities recognized | (468) |  |  | (269) |  |  | (1,315) |  |  | (1,004) |
Total consideration | 334,272 |  |  | 247,951 |  |  | 682,053 |  |  | 937,855 |
Aggregate unpaid principal balance and accrued interest of loans sold | 333,951 |  |  | 252,168 |  |  | 678,561 |  |  | 960,680 |
Gain (loss) from loan sales | $ | 321 |  |  | $ | (4,217) |  |  | $ | 3,492 |  |  | $ | (22,825) |
Sale execution(1) | 100.2 | % |  | 98.4 | % |  | 100.7 | % |  | 97.7 | %
_____________________ (1)Sale execution represents the ratio of cash proceeds and servicing assets recognized to the aggregate unpaid principal balance and accrued interest of the loans sold. Amounts included in repurchase liabilities are excluded from the calculation, as they typically would not materially differ from the fair value markdown on the loans over the repurchase period had they been held on balance sheet and entered delinquency.
Schedule of Transferred Loans with Continued Involvement | The following table presents information about the unpaid principal balances of loans originated by us and subsequently transferred, but with which we have continuing involvement:
| Personal Loans |  | Student Loans |  | Home Loans |  | Total
September 30, 2023 |  |  |  |  |  |  |
Loans in delinquency (30+ days past due) | $ | 60,634 |  |  | $ | 58,308 |  |  | $ | 26,382 |  |  | $ | 145,324 |
Total loans in delinquency | 96,718 |  |  | 130,497 |  |  | 26,382 |  |  | 253,597 |
Total transferred loans serviced(1) | 1,696,118 |  |  | 6,462,082 |  |  | 5,457,959 |  |  | 13,616,159 |
December 31, 2022 |  |  |  |  |  |  |
Loans in delinquency (30+ days past due) | $ | 64,654 |  |  | $ | 46,986 |  |  | $ | 16,510 |  |  | $ | 128,150 |
Total loans in delinquency | 108,991 |  |  | 115,818 |  |  | 16,510 |  |  | 241,319 |
Total transferred loans serviced(1) | 2,995,601 |  |  | 7,586,031 |  |  | 5,134,306 |  |  | 15,715,938 |
_____________________ (1)Total transferred 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 transferred 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 loans originated by us and subsequently transferred, but with which we have continuing involvement:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Personal loans |  |  |  |  |  |  |
Servicing fees collected from transferred loans | $ | 4,033 |  |  | $ | 9,020 |  |  | $ | 15,080 |  |  | $ | 25,845 |
Charge-offs, net of recoveries, of transferred loans(1) | 40,916 |  |  | 24,190 |  |  | 128,442 |  |  | 62,852 |
Student loans |  |  |  |  |  |  |
Servicing fees collected from transferred loans | 5,375 |  |  | 8,224 |  |  | 20,967 |  |  | 28,437 |
Charge-offs, net of recoveries, of transferred loans(1) | 10,139 |  |  | 7,372 |  |  | 29,297 |  |  | 24,784 |
Home loans |  |  |  |  |  |  |
Servicing fees collected from transferred loans | 3,662 |  |  | 3,686 |  |  | 10,481 |  |  | 9,252 |
Total |  |  |  |  |  |  |
Servicing fees collected from transferred loans | $ | 13,070 |  |  | $ | 20,930 |  |  | $ | 46,528 |  |  | $ | 63,534 |
Charge-offs, net of recoveries, of transferred loans(1) | 51,055 |  |  | 31,562 |  |  | 157,739 |  |  | 87,636 |
_____________________ (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)
September 30, 2023 |  |  |  |  |  |  |  |  |  |  |
Credit card | $ | 271,827 |  |  | $ | 5,005 |  |  | $ | 4,078 |  |  | $ | 11,294 |  |  | $ | 20,377 |  |  | $ | 292,204 |
Commercial and consumer banking: |  |  |  |  |  |  |  |  |  |  |
Commercial real estate | 105,709 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 105,709 |
Commercial and industrial | 5,684 |  |  | 288 |  |  | — |  |  | 466 |  |  | 754 |  |  | 6,438 |
Residential real estate and other consumer(3) | 3,342 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,342 |
Total commercial and consumer banking | 114,735 |  |  | 288 |  |  | — |  |  | 466 |  |  | 754 |  |  | 115,489 |
Total loans | $ | 386,562 |  |  | $ | 5,293 |  |  | $ | 4,078 |  |  | $ | 11,760 |  |  | $ | 21,131 |  |  | $ | 407,693 |
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. (2)For credit card, the balance is presented before allowance for credit losses of $50,055 and $39,110 as of September 30, 2023 and December 31, 2022, respectively, and accrued interest of $5,092 and $4,315, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,868 and $1,678, respectively, and accrued interest of $386 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 |  | September 30, 2023 |  | December 31, 2022
≥ 800 |  | $ | 22,999 |  |  | $ | 14,421 |
780 – 799 |  | 15,905 |  |  | 11,327 |
760 – 779 |  | 18,180 |  |  | 12,179 |
740 – 759 |  | 20,179 |  |  | 14,501 |
720 – 739 |  | 25,172 |  |  | 19,343 |
700 – 719 |  | 30,789 |  |  | 26,239 |
680 – 699 |  | 36,490 |  |  | 31,543 |
660 – 679 |  | 34,714 |  |  | 31,958 |
640 – 659 |  | 25,265 |  |  | 25,959 |
620 – 639 |  | 15,922 |  |  | 15,566 |
600 – 619 |  | 9,625 |  |  | 8,968 |
≤ 599 |  | 36,964 |  |  | 31,955 |
Total credit card |  | $ | 292,204 |  |  | $ | 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 |  |
September 30, 2023 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Total Term Loans |  | Revolving Loans
Commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 20,550 |  |  | $ | 34,042 |  |  | $ | 5,667 |  |  | $ | 4,577 |  |  | $ | 9,396 |  |  | $ | 18,846 |  |  | $ | 93,078 |  |  | $ | 190 |
Watch |  | 1,238 |  |  | 4,609 |  |  | 1,658 |  |  | — |  |  | 217 |  |  | 2,760 |  |  | 10,482 |  |  | — |
Special mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,577 |  |  | 1,577 |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 382 |  |  | 382 |  |  | — |
Total commercial real estate |  | 21,788 |  |  | 38,651 |  |  | 7,325 |  |  | 4,577 |  |  | 9,613 |  |  | 23,565 |  |  | 105,519 |  |  | 190 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 56 |  |  | — |  |  | — |  |  | 67 |  |  | 100 |  |  | 4,950 |  |  | 5,173 |  |  | 50 |
Watch |  | 48 |  |  | — |  |  | — |  |  | — |  |  | 18 |  |  | 11 |  |  | 77 |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,138 |  |  | 1,138 |  |  | — |
Total commercial and industrial |  | 104 |  |  | — |  |  | — |  |  | 67 |  |  | 118 |  |  | 6,099 |  |  | 6,388 |  |  | 50 |
Residential real estate and other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 735 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,480 |  |  | 3,215 |  |  | 87 |
Watch |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 40 |  |  | 40 |  |  | — |
Total residential real estate and other consumer |  | 735 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,520 |  |  | 3,255 |  |  | 87 |
Total commercial and consumer banking |  | $ | 22,627 |  |  | $ | 38,651 |  |  | $ | 7,325 |  |  | $ | 4,644 |  |  | $ | 9,731 |  |  | $ | 32,184 |  |  | $ | 115,162 |  |  | $ | 327 |

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- 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. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479319/326-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481962/310-10-50-29 + Details
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