v3.25.2
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional and Gross Fair Value Amounts of Derivatives Not Designated
The table below presents the notional and gross fair value amounts of the Company’s derivatives that are not designated as accounting hedges:
June 30, 2025December 31, 2024
Notional
Derivative Asset (1)
Derivative Liability (1)
Notional
Derivative Asset (1)
Derivative Liability (1)
Credit derivatives
$8,360 $— $(5,013)$12,484 $— $(10,930)
Interest rate caps200,000 2 — 200,000 72 — 
Total
$208,360 $2 $(5,013)$212,484 $72 $(10,930)
(1)    Recorded in “Other assets” or “Other liabilities,” as applicable, on the Balance Sheet and in “Operating activities” on the Statement of Cash Flows.
Schedule of Gains (Losses) on Derivatives and Fair Value Hedges
The table below presents the gains (losses) recognized on the Company’s derivatives that are not designated as accounting hedges:
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Credit derivatives (1)
$957 $(2,008)$2,116 $(3,442)
Interest rate caps (2)
(10)(63)(70)(63)
Total gains (losses)
$947 $(2,071)$2,046 $(3,505)
(1)    The initial fair value of the credit derivative liabilities is recorded in “Gain on sales of loans” with changes in the fair value recorded in “Net fair value adjustments,” both within “Marketplace revenue” on the Income Statement.
(2)    Changes in the fair value of the interest rate cap are recorded in “Net fair value adjustments” within “Marketplace revenue” on the Income Statement.
The following table summarizes the gains (losses) recognized on the Company’s fair value hedges:
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Unsecured personal loans:
Hedged item
$(406)$(1,785)$(153)$(10,457)
Derivatives used for hedging348 1,563 70 9,915 
Interest settlement on derivative (1)
147 1,396 (388)2,769 
Total gains (losses) on hedged unsecured personal loans (2)
89 1,174 (471)2,227 
Securities available for sale:
Hedged item
383 — 2,242 — 
Derivatives used for hedging
(413)— (2,346)— 
Interest settlement on derivative (1)
699 — 1,315 — 
Total gains on hedged securities available for sale (3)
669 — 1,211 — 
Total gains on fair value hedges
$758 $1,174 $740 $2,227 
(1)    Includes accrued interest receivable and accrued interest payable.
(2)    Recorded in “Interest and fees on loans and leases held for investment” on the Income Statement.
(3)    Recorded in “Interest on securities available for sale” on the Income Statement.
Schedule of Notional and Gross Fair Value Amounts of Derivatives used for Hedging
The table below presents the notional and gross fair value amounts of the Company’s interest rate swaps used for hedging:
June 30, 2025December 31, 2024
Notional
Derivative Asset (1)
Derivative Liability (1)
Notional
Derivative Asset (1)
Derivative Liability (1)
Unsecured personal loans
$825,000 $485 $(2,068)$1,075,000 $1,323 $(2,976)
Securities available for sale
475,000 874 (838)225,000 2,382 — 
Total interest rate swaps
$1,300,000 $1,359 $(2,906)$1,300,000 $3,705 $(2,976)
(1)    Recorded in “Other assets” or “Other liabilities,” as applicable, on the Balance Sheet and in “Operating activities” on the Statement of Cash Flows.
Schedule of Cumulative Basis Adjustments for Fair Value Hedges
The following table presents the cumulative basis adjustments for fair value hedges:
June 30, 2025December 31, 2024
Balance Sheet Line Item
Carrying Amount of Closed Portfolio(1)
Cumulative Fair Value Adjustment Included in the Carrying Amount of the Hedged Items
Carrying Amount of Closed Portfolio(1)
Cumulative Fair Value Adjustment Included in the Carrying Amount of the Hedged Items
Loans and leases held for investment
$1,982,012 $1,719 $1,388,222 $1,872 
Securities available for sale$1,646,792 $45 $2,255,848 $(2,197)
(1)    Represents the total closed portfolio of assets (at amortized cost) designated in a portfolio method hedge relationship in which the hedged item is a stated layer that is expected to be remaining at the end of the hedging relationship. At June 30, 2025, the amortized cost of unsecured personal loans and AFS securities, designated as the hedged items in the portfolio layer hedging relationship, was $825 million and $475 million, respectively.
At December 31, 2024, the amortized cost of unsecured personal loans and AFS securities, designated as the hedged items in the portfolio layer hedging relationship, was $1.075 billion and $225 million, respectively.