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Delaware
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001-36779
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42-1709682
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(State or other jurisdiction
of incorporation) |
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(Commission
File Number)
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(I. R. S. Employer
Identification No.)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
|
Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.005 per share
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ONDK
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New York Stock Exchange
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Item 2.02
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Results of Operations and Financial Condition.
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Item 7.01
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Regulation FD Disclosure.
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Item 9.01
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Financial Statements and Exhibits.
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Exhibit No.
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|
Description
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|
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||
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Date: July 28, 2020
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|
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On Deck Capital, Inc.
|
||||
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|
|||||
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/s/ Kenneth A. Brause
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||
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Kenneth A. Brause
Chief Financial Officer
|
•
|
Net income* of $2.2 million, $0.04 per diluted share
|
•
|
Adjusted Net income* of $13.6 million, $0.23 per diluted share
|
•
|
Exceeded second quarter operating expense savings target
|
•
|
Reduced portfolio delinquency from peak level in April
|
•
|
Executed amendments of key debt facilities
|
•
|
Began originating new term loans and lines of credit in June after pause in May
|
•
|
Lower revenue reflecting continued, albeit slower, portfolio contraction,
|
•
|
Net Interest Margin stabilization,
|
•
|
Provision for credit losses consistent with increasing originations and portfolio quality trends, and
|
•
|
Operating expenses of approximately $40 million per quarter.
|
|
Three Months Ended,
|
|
Six Months Ended,
|
||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
||||||||||
Interest and finance income
|
$
|
78,308
|
|
|
$
|
106,935
|
|
|
$
|
105,641
|
|
|
$
|
185,243
|
|
|
$
|
211,440
|
|
Interest expense
|
10,291
|
|
|
11,569
|
|
|
11,381
|
|
|
21,860
|
|
|
22,713
|
|
|||||
Net interest income
|
68,017
|
|
|
95,366
|
|
|
94,260
|
|
|
163,383
|
|
|
188,727
|
|
|||||
Provision for credit losses
|
23,720
|
|
|
107,907
|
|
|
42,951
|
|
|
131,627
|
|
|
86,242
|
|
|||||
Net interest income (loss), after credit provision
|
44,297
|
|
|
(12,541
|
)
|
|
51,309
|
|
|
31,756
|
|
|
102,485
|
|
|||||
Other revenue
|
2,217
|
|
|
3,620
|
|
|
4,605
|
|
|
5,837
|
|
|
8,781
|
|
|||||
Operating expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales and marketing
|
5,473
|
|
|
11,664
|
|
|
13,307
|
|
|
17,137
|
|
|
25,267
|
|
|||||
Technology and analytics
|
15,088
|
|
|
16,484
|
|
|
16,681
|
|
|
31,572
|
|
|
33,487
|
|
|||||
Processing and servicing
|
5,452
|
|
|
6,689
|
|
|
5,609
|
|
|
12,141
|
|
|
11,098
|
|
|||||
General and administrative
|
13,664
|
|
|
16,280
|
|
|
16,353
|
|
|
29,944
|
|
|
30,382
|
|
|||||
Total operating expense
|
39,677
|
|
|
51,117
|
|
|
51,950
|
|
|
90,794
|
|
|
100,234
|
|
|||||
Goodwill Impairment
|
10,960
|
|
|
—
|
|
|
—
|
|
|
10,960
|
|
|
—
|
|
|||||
Income (loss) from operations, before provision for income taxes
|
(4,123)
|
|
|
(60,038)
|
|
|
3,964
|
|
|
(64,161)
|
|
|
11,032
|
|
|||||
Provision for (Benefit from) income taxes
|
—
|
|
|
—
|
|
|
1,796
|
|
|
—
|
|
|
3,536
|
|
|||||
Net income (loss)
|
(4,123)
|
|
|
(60,038)
|
|
|
2,168
|
|
|
(64,161)
|
|
|
7,496
|
|
|||||
Less: Net income (loss) attributable to noncontrolling interest
|
(6,293)
|
|
|
(1,063)
|
|
|
(2,127
|
)
|
|
(7,356)
|
|
|
(2,465
|
)
|
|||||
Net income (loss) attributable to On Deck Capital, Inc. common stockholders
|
$
|
2,170
|
|
|
$
|
(58,975
|
)
|
|
$
|
4,295
|
|
|
$
|
(56,805
|
)
|
|
$
|
9,961
|
|
Net income (loss) per share attributable to On Deck Capital, Inc. common stockholders:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.04
|
|
|
$
|
(0.94
|
)
|
|
$
|
0.06
|
|
|
$
|
(0.94
|
)
|
|
$
|
0.13
|
|
Diluted
|
$
|
0.04
|
|
|
$
|
(0.94
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.94
|
)
|
|
$
|
0.13
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
58,741,590
|
|
|
62,534,517
|
|
|
76,137,751
|
|
|
60,625,795
|
|
|
75,840,604
|
|
|||||
Diluted
|
59,946,591
|
|
|
62,534,517
|
|
|
78,901,601
|
|
|
60,625,795
|
|
|
79,013,757
|
|
|
Three Months Ended,
|
|
Six Months Ended,
|
|||||||||||
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
||||||
Interest and finance income
|
24.7
|
%
|
|
30.9
|
%
|
|
32.5
|
%
|
|
28.3
|
%
|
|
32.8
|
%
|
Interest expense
|
3.2
|
%
|
|
3.3
|
%
|
|
3.5
|
%
|
|
3.3
|
%
|
|
3.5
|
%
|
Net interest income:
|
21.5
|
%
|
|
27.6
|
%
|
|
29.0
|
%
|
|
25.0
|
%
|
|
29.3
|
%
|
Provision for credit losses
|
7.5
|
%
|
|
31.2
|
%
|
|
13.2
|
%
|
|
20.1
|
%
|
|
13.4
|
%
|
Net interest income (loss), after credit provision:
|
14.0
|
%
|
|
(3.6
|
)%
|
|
15.8
|
%
|
|
4.9
|
%
|
|
15.9
|
%
|
Other revenue
|
0.7
|
%
|
|
1.1
|
%
|
|
1.4
|
%
|
|
0.9
|
%
|
|
1.4
|
%
|
Operating expense:
|
|
|
|
|
|
|
|
|
|
|||||
Sales and marketing
|
1.7
|
%
|
|
3.4
|
%
|
|
4.1
|
%
|
|
2.6
|
%
|
|
3.9
|
%
|
Technology and analytics
|
4.8
|
%
|
|
4.8
|
%
|
|
5.1
|
%
|
|
4.7
|
%
|
|
5.2
|
%
|
Processing and servicing
|
1.7
|
%
|
|
1.9
|
%
|
|
1.7
|
%
|
|
1.9
|
%
|
|
1.7
|
%
|
General and administrative
|
4.3
|
%
|
|
4.7
|
%
|
|
5.0
|
%
|
|
4.6
|
%
|
|
4.7
|
%
|
Total operating expense
|
12.5
|
%
|
|
14.8
|
%
|
|
15.9
|
%
|
|
13.9
|
%
|
|
15.5
|
%
|
Goodwill Impairment
|
3.5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1.7
|
%
|
|
—
|
%
|
Income (loss) from operations, before provision for income taxes
|
(1.3
|
)%
|
|
(17.4
|
)%
|
|
1.3
|
%
|
|
(9.8
|
)%
|
|
1.8
|
%
|
Provision for (Benefit from) income taxes
|
—
|
%
|
|
—
|
%
|
|
0.6
|
%
|
|
—
|
%
|
|
0.6
|
%
|
Net income (loss)
|
(1.3
|
)%
|
|
(17.4
|
)%
|
|
0.7
|
%
|
|
(9.8
|
)%
|
|
1.2
|
%
|
Memo:
|
|
|
|
|
|
|
|
|
|
|||||
Average Interest Earning Assets
|
$1,271,831
|
|
$1,386,501
|
|
$1,303,709
|
|
$1,313,072
|
|
$1,300,864
|
|
June 30, 2020
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||
Assets
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
71,659
|
|
|
$
|
121,148
|
|
|
$
|
56,344
|
|
Restricted cash
|
77,930
|
|
|
29,094
|
|
|
40,524
|
|
|||
Loans and finance receivables
|
901,126
|
|
|
1,291,586
|
|
|
1,265,312
|
|
|||
Less: Allowance for credit losses
|
(173,607
|
)
|
|
(205,703
|
)
|
|
(151,133
|
)
|
|||
Loans and finance receivables, net
|
727,519
|
|
|
1,085,883
|
|
|
1,114,179
|
|
|||
Property, equipment and software, net
|
24,629
|
|
|
23,714
|
|
|
20,332
|
|
|||
Other assets
|
66,861
|
|
|
77,339
|
|
|
73,204
|
|
|||
Total assets
|
$
|
968,598
|
|
|
$
|
1,337,178
|
|
|
$
|
1,304,583
|
|
Liabilities, mezzanine equity and stockholders' equity
|
|
|
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
||||||
Accounts payable
|
$
|
7,665
|
|
|
$
|
6,804
|
|
|
$
|
6,470
|
|
Interest payable
|
2,043
|
|
|
3,100
|
|
|
2,334
|
|
|||
Debt
|
680,371
|
|
|
1,043,924
|
|
|
914,995
|
|
|||
Accrued expenses and other liabilities
|
52,563
|
|
|
56,834
|
|
|
70,110
|
|
|||
Total liabilities
|
742,642
|
|
|
1,110,662
|
|
|
993,909
|
|
|||
Mezzanine equity:
|
|
|
|
|
|
||||||
Redeemable noncontrolling interest
|
6,888
|
|
|
13,112
|
|
|
14,428
|
|
|||
Stockholders’ equity:
|
|
|
|
|
|
||||||
Common stock—$0.005 par value, 1,000,000,000 shares authorized and 80,745,115, 80,247,423, and 80,095,061 shares issued and 58,916,996, 58,419,304, and 66,363,555 outstanding at June 30, 2020, March 31, 2020, and December 31, 2019, respectively.
|
408
|
|
|
406
|
|
|
405
|
|
|||
Treasury stock—at cost
|
(82,503
|
)
|
|
(82,503
|
)
|
|
(49,641
|
)
|
|||
Additional paid-in capital
|
516,892
|
|
|
514,785
|
|
|
513,571
|
|
|||
Accumulated deficit
|
(215,339
|
)
|
|
(217,509
|
)
|
|
(169,002
|
)
|
|||
Accumulated other comprehensive loss
|
(1,985
|
)
|
|
(2,923
|
)
|
|
(1,333
|
)
|
|||
Total On Deck Capital, Inc. stockholders' equity
|
217,473
|
|
|
212,256
|
|
|
294,000
|
|
|||
Noncontrolling interest
|
1,595
|
|
|
1,148
|
|
|
2,246
|
|
|||
Total stockholders' equity
|
219,068
|
|
|
213,404
|
|
|
296,246
|
|
|||
Total liabilities, mezzanine equity and stockholders' equity
|
$
|
968,598
|
|
|
$
|
1,337,178
|
|
|
$
|
1,304,583
|
|
|
|
|
|
|
|
||||||
Memo:
|
|
|
|
|
|
||||||
Unpaid Principal Balance1
|
$
|
883,999
|
|
|
$
|
1,263,364
|
|
|
$
|
1,238,409
|
|
Loans and finance receivables2
|
$
|
901,126
|
|
|
$
|
1,291,586
|
|
|
$
|
1,265,312
|
|
Interest Earning Assets3
|
$
|
1,050,716
|
|
|
$
|
1,441,828
|
|
|
$
|
1,362,181
|
|
Book Value Per Diluted Share
|
$
|
3.62
|
|
|
$
|
3.49
|
|
|
$
|
4.26
|
|
|
Average Three Months Ended,
|
|
Average Six Months Ended,
|
||||||||||||||||
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
101,836
|
|
|
$
|
64,245
|
|
|
$
|
51,530
|
|
|
$
|
77,597
|
|
|
$
|
48,356
|
|
Restricted cash
|
65,305
|
|
|
38,206
|
|
|
45,677
|
|
|
54,993
|
|
|
47,258
|
|
|||||
Loans and finance receivables
|
1,104,690
|
|
|
1,284,050
|
|
|
1,206,503
|
|
|
1,180,482
|
|
|
1,205,250
|
|
|||||
Less: Allowance for credit losses
|
(190,512
|
)
|
|
(164,840
|
)
|
|
(146,612
|
)
|
|
(173,672
|
)
|
|
(146,002
|
)
|
|||||
Loans and finance receivables, net
|
914,178
|
|
|
1,119,210
|
|
|
1,059,891
|
|
|
1,006,810
|
|
|
1,059,248
|
|
|||||
Property, equipment and software, net
|
24,082
|
|
|
22,159
|
|
|
17,413
|
|
|
23,036
|
|
|
17,064
|
|
|||||
Other assets
|
75,287
|
|
|
73,614
|
|
|
58,022
|
|
|
74,038
|
|
|
48,404
|
|
|||||
Total assets
|
$
|
1,180,688
|
|
|
$
|
1,317,434
|
|
|
$
|
1,232,533
|
|
|
$
|
1,236,474
|
|
|
$
|
1,220,330
|
|
Liabilities, mezzanine equity and stockholders' equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
6,683
|
|
|
$
|
6,965
|
|
|
$
|
5,120
|
|
|
$
|
6,827
|
|
|
$
|
5,121
|
|
Interest payable
|
2,667
|
|
|
2,621
|
|
|
2,812
|
|
|
2,579
|
|
|
2,718
|
|
|||||
Debt
|
891,816
|
|
|
961,977
|
|
|
834,582
|
|
|
910,179
|
|
|
835,926
|
|
|||||
Accrued expenses and other liabilities
|
53,300
|
|
|
62,287
|
|
|
63,690
|
|
|
57,932
|
|
|
59,792
|
|
|||||
Total liabilities
|
954,466
|
|
|
1,033,850
|
|
|
906,204
|
|
|
977,517
|
|
|
903,557
|
|
|||||
Mezzanine equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest
|
11,105
|
|
|
13,958
|
|
|
11,634
|
|
|
12,448
|
|
|
6,647
|
|
|||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total On Deck Capital, Inc. stockholders' equity
|
213,852
|
|
|
267,800
|
|
|
310,858
|
|
|
244,908
|
|
|
305,990
|
|
|||||
Noncontrolling interest
|
1,265
|
|
|
1,826
|
|
|
3,837
|
|
|
1,602
|
|
|
4,136
|
|
|||||
Total stockholders' equity
|
215,117
|
|
|
269,626
|
|
|
314,695
|
|
|
246,510
|
|
|
310,126
|
|
|||||
Total liabilities, mezzanine equity and stockholders' equity
|
$
|
1,180,688
|
|
|
$
|
1,317,434
|
|
|
$
|
1,232,533
|
|
|
$
|
1,236,475
|
|
|
$
|
1,220,330
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Memo:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unpaid Principal Balance
|
$
|
1,081,946
|
|
|
$
|
1,256,429
|
|
|
$
|
1,183,056
|
|
|
$
|
1,155,733
|
|
|
$
|
1,180,831
|
|
Loans and finance receivables
|
$
|
1,104,690
|
|
|
$
|
1,284,050
|
|
|
$
|
1,206,503
|
|
|
$
|
1,180,482
|
|
|
$
|
1,205,250
|
|
Interest Earning Assets
|
$
|
1,271,831
|
|
|
$
|
1,386,501
|
|
|
$
|
1,303,709
|
|
|
$
|
1,313,072
|
|
|
$
|
1,300,864
|
|
|
Three Months Ended,
|
|
Six Months Ended,
|
||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
||||||||||
Originations5
|
$
|
65,573
|
|
|
$
|
591,863
|
|
|
$
|
591,848
|
|
|
$
|
657,437
|
|
|
$
|
1,227,354
|
|
Gross Revenue6
|
80,525
|
|
|
110,555
|
|
|
110,246
|
|
|
191,080
|
|
|
220,221
|
|
|||||
Portfolio Yield7
|
28.4
|
%
|
|
33.3
|
%
|
|
35.0
|
%
|
|
31.4
|
%
|
|
35.3
|
%
|
|||||
Cost of Funds Rate8
|
4.6
|
%
|
|
4.8
|
%
|
|
5.5
|
%
|
|
4.8
|
%
|
|
5.4
|
%
|
|||||
Net Interest Margin9
|
21.5
|
%
|
|
27.6
|
%
|
|
29.0
|
%
|
|
25.0
|
%
|
|
29.3
|
%
|
|||||
Reserve Ratio10
|
19.6
|
%
|
|
16.3
|
%
|
|
12.3
|
%
|
|
19.6
|
%
|
|
12.3
|
%
|
|||||
15+ Day Delinquency Ratio11
|
39.5
|
%
|
|
10.3
|
%
|
|
8.5
|
%
|
|
39.5
|
%
|
|
8.5
|
%
|
|||||
Net Charge-off Rate12
|
20.9
|
%
|
|
15.8
|
%
|
|
15.1
|
%
|
|
18.4
|
%
|
|
13.6
|
%
|
|||||
Efficiency Ratio13
|
49.3
|
%
|
|
46.2
|
%
|
|
47.1
|
%
|
|
47.5
|
%
|
|
45.5
|
%
|
|||||
Adjusted Efficiency Ratio14 (a)
|
43.0
|
%
|
|
45.0
|
%
|
|
44.2
|
%
|
|
44.1
|
%
|
|
42.6
|
%
|
|||||
Return on Assets15
|
0.7
|
%
|
|
(17.9
|
)%
|
|
1.4
|
%
|
|
(9.2
|
)%
|
|
1.6
|
%
|
|||||
Adjusted Return on Assets16 (a)
|
4.6
|
%
|
|
(17.5
|
)%
|
|
2.2
|
%
|
|
(7.1
|
)%
|
|
2.5
|
%
|
|||||
Return on Equity17
|
4.1
|
%
|
|
(88.1
|
)%
|
|
5.5
|
%
|
|
(46.4
|
)%
|
|
6.5
|
%
|
|||||
Adjusted Return on Equity18 (a)
|
25.5
|
%
|
|
(86.0
|
)%
|
|
8.8
|
%
|
|
(35.9
|
)%
|
|
9.8
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended,
|
|
Six Months Ended,
|
||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
||||||||||
Activity in the Allowance for Credit Losses
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses beginning of period
|
$
|
205,703
|
|
|
$
|
151,133
|
|
|
$
|
147,406
|
|
|
$
|
151,133
|
|
|
$
|
140,040
|
|
+ Provision for credit losses
|
23,720
|
|
|
107,907
|
|
|
42,951
|
|
|
131,627
|
|
|
86,242
|
|
|||||
- Gross charge-offs
|
(62,402
|
)
|
|
(55,228
|
)
|
|
(49,141
|
)
|
|
(117,630
|
)
|
|
(88,980
|
)
|
|||||
+ Recoveries
|
5,883
|
|
|
5,597
|
|
|
4,523
|
|
|
11,480
|
|
|
8,437
|
|
|||||
- Transition to CECL Adjustment
|
—
|
|
|
(3,304
|
)
|
|
—
|
|
|
(3,304
|
)
|
|
—
|
|
|||||
- Foreign Currency Translation
|
703
|
|
|
(402
|
)
|
|
—
|
|
|
301
|
|
|
—
|
|
|||||
Allowance for credit losses end of period
|
$
|
173,607
|
|
|
$
|
205,703
|
|
|
$
|
145,739
|
|
|
$
|
173,607
|
|
|
$
|
145,739
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Activity in Loans and Finance Receivables Held for Investment Balances
|
Three Months Ended,
|
|
Six Months Ended,
|
||||||||||||||||
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|||||||||||
Unpaid Principal Balance beginning of period
|
$
|
1,263,364
|
|
|
$
|
1,238,409
|
|
|
$
|
1,177,609
|
|
|
$
|
1,238,409
|
|
|
$
|
1,144,954
|
|
+ Total originations(b)
|
65,573
|
|
|
591,863
|
|
|
591,848
|
|
|
657,437
|
|
|
1,227,354
|
|
|||||
+ Purchase of Loans and finance receivables
|
—
|
|
|
—
|
|
|
37,454
|
|
|
—
|
|
|
37,454
|
|
|||||
- Net charge-offs
|
(56,518
|
)
|
|
(49,631
|
)
|
|
(44,618
|
)
|
|
(106,150
|
)
|
|
(80,543
|
)
|
|||||
- Principal paid down
|
(388,420
|
)
|
|
(517,277
|
)
|
|
(577,171
|
)
|
|
(905,697
|
)
|
|
(1,144,097
|
)
|
|||||
Unpaid Principal Balance end of period
|
883,999
|
|
|
1,263,364
|
|
|
1,185,122
|
|
|
883,999
|
|
|
1,185,122
|
|
|||||
+ Net deferred origination costs
|
17,127
|
|
|
28,222
|
|
|
22,487
|
|
|
17,127
|
|
|
22,487
|
|
|||||
Loans and finance receivables held for investment
|
901,126
|
|
|
1,291,586
|
|
|
1,207,609
|
|
|
901,126
|
|
|
1,207,609
|
|
|||||
- Allowance for credit losses
|
(173,607
|
)
|
|
(205,703
|
)
|
|
(145,739
|
)
|
|
(173,607
|
)
|
|
(145,739
|
)
|
|||||
Loans and finance receivables held for investment, net
|
$
|
727,519
|
|
|
$
|
1,085,883
|
|
|
$
|
1,061,870
|
|
|
$
|
727,519
|
|
|
$
|
1,061,870
|
|
(a) Non-GAAP measure. See "About Non-GAAP Financial Measures," and "Non-GAAP Reconciliations" and related footnotes elsewhere in this press release.
|
|||||||||||||||||||
(b) Includes Unpaid Principal Balance of term loans rolled into new originations of $8.9 million, $79.7 million, and $95.2 million in the three months ended June 30, 2020, March 31, 2020, and June 30, 2019, respectively and $88.7 million, and $193.7 million, in the six months ended June 30, 2020 and June 30, 2019, respectively
|
|
Three Months Ended,
|
|
Six Months Ended,
|
|||||||||||||||||
Reconciliation of Net Income to Adjusted Net Income
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|||||||||||
Net income (loss) attributable to On Deck Capital, Inc. common stockholders
|
$
|
2,170
|
|
|
$
|
(58,975
|
)
|
|
$
|
4,295
|
|
|
$
|
(56,805
|
)
|
|
$
|
9,961
|
|
|
Adjustments (after-tax):
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stock-based compensation expense
|
2,247
|
|
|
1,416
|
|
|
2,581
|
|
|
3,663
|
|
|
5,017
|
|
||||||
Goodwill Impairment(c)
|
6,412
|
|
|
—
|
|
|
—
|
|
|
6,412
|
|
|
—
|
|
||||||
Restructuring Costs
|
2,802
|
|
|
—
|
|
|
—
|
|
|
2,802
|
|
|
—
|
|
||||||
Adjusted Net Income (Loss)19
|
$
|
13,631
|
|
|
$
|
(57,559
|
)
|
|
$
|
6,876
|
|
|
$
|
(43,928
|
)
|
|
$
|
14,978
|
|
|
Adjusted Net Income (Loss) per Share20:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic
|
$
|
0.23
|
|
|
$
|
(0.92
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.72
|
)
|
|
$
|
0.20
|
|
|
Diluted
|
$
|
0.23
|
|
|
$
|
(0.92
|
)
|
|
$
|
0.09
|
|
|
$
|
(0.72
|
)
|
|
$
|
0.19
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|||||||||||
Basic
|
58,741,590
|
|
|
62,534,517
|
|
|
76,137,751
|
|
|
60,625,795
|
|
|
75,840,604
|
|
||||||
Diluted
|
59,946,591
|
|
|
62,534,517
|
|
|
78,901,601
|
|
|
60,625,795
|
|
|
79,013,757
|
|
||||||
(c) Net of $4.5 million attributable to noncontrolling interest for the three and six months ended June 30, 2020.
|
|
Three Months Ended,
|
|
Six Months Ended,
|
||||||||||||||||
Reconciliation of Efficiency Ratio to Adjusted Efficiency Ratio
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
||||||||||
Total operating expense
|
$
|
39,677
|
|
|
$
|
51,117
|
|
|
$
|
51,950
|
|
|
$
|
90,794
|
|
|
$
|
100,234
|
|
Gross revenue
|
80,525
|
|
|
110,555
|
|
|
110,246
|
|
|
191,080
|
|
|
220,221
|
|
|||||
Efficiency Ratio
|
49.3
|
%
|
|
46.2
|
%
|
|
47.1
|
%
|
|
47.5
|
%
|
|
45.5
|
%
|
|||||
Adjustments (pre-tax):
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense
|
2,247
|
|
|
1,416
|
|
|
3,249
|
|
|
3,663
|
|
|
6,331
|
|
|||||
Restructuring Costs
|
2,802
|
|
|
—
|
|
|
—
|
|
|
2,802
|
|
|
—
|
|
|||||
Operating Expenses Less Noteworthy Items
|
$
|
34,627
|
|
|
$
|
49,701
|
|
|
$
|
48,701
|
|
|
$
|
84,329
|
|
|
$
|
93,903
|
|
Gross revenue
|
80,525
|
|
|
110,555
|
|
|
110,246
|
|
|
191,080
|
|
|
220,221
|
|
|||||
Adjusted Efficiency Ratio
|
43.0
|
%
|
|
45.0
|
%
|
|
44.2
|
%
|
|
44.1
|
%
|
|
42.6
|
%
|
|
Three Months Ended,
|
|
Six Months Ended,
|
|||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
|||||
Percentage of originations (dollars)
|
|
|
|
|
|
|
|
|
|
|||||
Direct
|
50
|
%
|
|
38
|
%
|
|
43
|
%
|
|
39
|
%
|
|
43
|
%
|
Strategic Partner
|
31
|
%
|
|
34
|
%
|
|
31
|
%
|
|
34
|
%
|
|
30
|
%
|
Funding Advisor
|
19
|
%
|
|
28
|
%
|
|
26
|
%
|
|
27
|
%
|
|
27
|
%
|