powerpoint presentation · change vs ($ millions) 4µ 4µ 4µ 4µ 4µ q/q y/y 2017 2018 y/y...
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Change vs
($ millions) 4Q ‘17 1Q ‘18 2Q ‘18 3Q ‘18 4Q ‘18 Q/Q Y/Y 2017 2018 Y/Y
Interest Income $84 $86 $92 $99 $105 6% 26% $335 $384 15%
Other Revenue $4 $4 $3 $4 $4 17% 17% $14 $15 7%
Gross Revenue $88 $90 $96 $103 $109 6% 25% $351 $398 14%
Provision for Loan Losses $34 $36 $33 $39 $40 2% 16% $153 $149 (3%)
Interest Expense $11 $12 $12 $12 $11 (4%) (0%) $46 $47 2%
Operating Expense $38 $45 $45 $43 $45 5% 19% $166 $177 7%
Net income (loss) attributable to OnDeck $5 ($2) $6 $10 $14 44% 175% ($12) $28 NM
Adjusted Net income (loss)* $8 $6 $10 $13 $16 21% 97% $4 $45 991%
Quarter Ended Year Ended
Change vs
(3)(2) (4) (5)
(1)
(6)
$5
($2)
$6
$10
$14
4Q '17
$0.07
1Q '18
$(0.03)
2Q '18
$0.07
3Q '18
$0.12
4Q '18
$0.18EPS
$8
$6
$10
$13
$16
4Q '17
$0.10
1Q '18
$0.08
2Q '18
$0.13
3Q '18
$0.17
4Q '18
$0.20EPS
4Q '17 1Q '18 2Q '18 3Q '18 4Q '184Q '17 1Q '18 2Q '18 3Q '18 4Q '18
$953 $1,011
$1,047 $1,118
$1,169
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
43.8%46.0% 47.1% 47.5% 47.0%
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
2.0%1.9% 1.9%
1.7% 1.7%
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
$546 $591 $587
$648 $658
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
34.8%
35.6%36.1%
36.5% 36.6%
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
$953 $984
$1,025 $1,081
$1,141
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
$84 $86
$92
$99
$105
$4
$4
$3
$4
$4
$88
$90
$96
$103
$109 27%
28% 28%
29%30%
15%
17%
19%
21%
23%
25%
27%
29%
31%
$75
$80
$85
$90
$95
$100
$105
$110
$115
$120
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
Interest Income Other Revenue Gain on Sale Net Interest Margin
$109 $119 $124 $134 $140
11.6% 12.0% 12.1% 12.2% 12.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
$0
$50
$100
$150
$200
$250
$300
$350
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
Allowance for Loan Losses
Reserve Ratio
$34$36
$33
$39 $40
6.4% 6.1% 5.7% 6.0% 6.0%
-17.0%
-12.0%
-7.0%
-2.0%
3.0%
8.0%
13.0%
18.0%
23.0%
$20
$25
$30
$35
$40
$45
$50
$55
$60
$65
$70
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
Provision for Loan Losses
Provision Rate
5.1% 4.5% 4.4% 4.0% 4.8%
1.6% 2.2% 2.4% 2.4%2.7%
6.7% 6.7% 6.8% 6.4%7.5%
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
90+ calendar days past due
15-89 calendar days past due
12.9%
10.9% 11.2% 11.1%12.0%
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
2.6x2.8x 2.7x
2.8x2.7x
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
$685 $699 $735
$771 $805
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
$11.2
$11.8 $12.2
$11.7
$11.2
6.5%6.8%
6.6%
6.0%
5.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
$5.0
$7.0
$9.0
$11.0
$13.0
$15.0
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
Funding Cost Cost of Funds Rate
$11 $11 $11 $11 $12
$11 $11$13 $13
$14
$5 $5$5 $5
$6
$11 $13
$16$13
$14
$5$38
$45$45
$43$45
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
S&M T&A P&S G&A Noteworthy Items
43%
49%47%
42% 41%
40% 40%43%
38% 39%
•
•
$266 $267$278
$290
$304
27%26% 26% 26%
26%
10%
15%
20%
25%
30%
35%
$200
$220
$240
$260
$280
$300
$320
$340
$360
$380
$400
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
$440 $485$543
$594 $597
$250$250
$225$225 $225
$344 $296
$420$252 $246
$1,042 $1,039
$1,188
$1,070 $1,068
67%72%
65%
77% 77%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
Warehouse Securitization Corporate Debt Excess Capacity Capacity Utilization
$71 $70 $74 $71$60
4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
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Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31,
2017 2017 2017 2017 2018 2018 2018 2018
Originations ($ millions) $2,115 $2,484 $573 $464 $531 $546 $591 $587 $648 $658
Loans ($ millions) $953 $1,169 $1,047 $970 $957 $953 $1,011 $1,047 $1,118 $1,169
Net Charge-Off Rate 15.8% 11.3% 14.9% 18.5% 16.9% 12.9% 10.9% 11.2% 11.1% 12.0%
15+ Day Delinquency Ratio (1) 6.7% 7.5% 7.8% 7.2% 7.5% 6.7% 6.7% 6.8% 6.4% 7.5%
Reserve Ratio (1) 11.6% 12.2% 11.5% 11.0% 11.1% 11.6% 12.0% 12.1% 12.2% 12.2%
Provision Rate 7.5% 6.0% 8.7% 7.2% 7.5% 6.4% 6.1% 5.7% 6.0% 6.0%
Loan Yield 33.8% 36.2% 33.8% 33.4% 33.1% 34.8% 35.6% 36.1% 36.5% 36.6%
Cost of Funds Rate 6.2% 6.3% 5.9% 6.2% 6.3% 6.5% 6.8% 6.6% 6.1% 5.6%
Net Interest Margin (NIM) 26.1% 29.0% 26.4% 25.4% 25.3% 27.2% 27.8% 28.3% 29.3% 30.0%
Efficiency Ratio 47.3% 44.6% 50.3% 51.4% 44.5% 42.9% 49.3% 47.4% 41.4% 41.1%
Adjusted Efficiency Ratio* 42.9% 40.1% 46.5% 44.3% 40.9% 39.5% 40.1% 43.0% 38.1% 39.4%
Return on Asset (ROA) (1.1%) 2.6% (4.0%) (0.6%) (1.6%) 2.1% (0.8%) 2.2% 3.6% 4.9%
Adjusted Return on Asset (ROA)* 0.4% 4.3% (2.8%) 1.7% (0.4%) 3.3% 2.5% 3.8% 4.8% 5.6%
Return on Equity (ROE) (4.5%) 10.0% (17.5%) (2.4%) (6.4%) 7.9% (2.9%) 8.6% 14.1% 19.2%
Adjusted Return on Equity (ROE)* 1.6% 16.5% (11.9%) 7.4% (1.6%) 12.6% 9.7% 14.9% 19.0% 21.8%
Year Ended Quarter Ended
2017 2018
($ thousands)Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
Assets
Cash and cash equivalents $79,554 $72,997 $77,936 $64,292 $71,362 $70,415 $74,262 $71,304 $59,859
Restricted cash 44,432 64,672 54,166 56,729 43,462 44,709 44,189 48,919 37,779
Loans held for investment 1,000,445 1,046,584 970,472 957,203 952,796 1,010,944 1,046,588 1,117,828 1,169,157
Less: Allowance for loan losses (110,162) (118,075) (105,217) (104,872) (109,015) (118,921) (124,058) (133,644) (140,040)
Loans held for investment, net 890,283 928,509 865,255 852,331 843,781 892,023 922,530 984,184 1,029,117
Loans held for sale 373 1,046 -- -- -- -- -- -- --
Property, equipment and software, net 29,405 28,265 26,962 24,975 23,572 17,455 16,939 16,286 16,700
Other assets 20,044 18,411 19,119 17,069 13,867 15,824 14,264 19,240 18,115
Total assets $1,064,091 $1,113,900 $1,043,438 $1,015,397 $996,044 $1,040,426 $1,072,184 $1,139,933 $1,161,570
Liabilities and equity
Liabilities:
Accounts payable $5,271 $4,040 $5,569 $2,918 $2,674 $3,038 $4,087 $5,651 $4,011
Interest payable 2,122 2,610 2,406 2,213 2,330 2,429 2,574 2,132 2,385
Debt 754,605 816,010 744,067 720,178 692,254 737,993 755,720 812,428 816,231
Accrued expenses and other liabilities 38,496 30,562 31,596 30,988 32,730 29,499 32,115 29,500 34,654
Total liabilities 800,494 853,222 783,638 756,297 729,988 772,959 794,496 849,711 857,281
Stockholders’ equity 259,525 253,527 254,664 254,310 262,045 264,024 272,038 284,982 299,756
Noncontrolling Interest 4,072 7,151 5,136 4,790 4,011 3,443 5,650 5,240 4,533
Total liabilities and equity $1,064,091 $1,113,900 $1,043,438 $1,015,397 $996,044 $1,040,426 $1,072,185 $1,139,933 $1,161,570
Memo:
Unpaid Principal Balance $980,451 $1,026,158 $953,809 $940,881 $936,239 $992,595 $1,026,586 $1,095,792 $1,144,954
Interest Earning Assets $1,124,431 $1,184,252 $1,102,574 $1,078,225 $1,067,619 $1,126,068 $1,165,039 $1,238,051 $1,266,795
Loans $1,000,445 $1,046,584 $970,472 $957,203 $952,796 $1,010,944 $1,046,588 $1,117,828 $1,169,157
Basic Shares 71,605,708 72,466,376 73,057,122 73,623,312 73,822,001 74,264,491 74,641,004 75,029,010 75,375,341
Diluted Shares 75,702,870 76,529,937 76,549,052 76,915,067 77,231,614 77,639,544 78,519,500 79,685,909 79,461,998
Book Value Per Share (Basic) $3.62 $3.50 $3.49 $3.45 $3.55 $3.56 $3.64 $3.80 $3.98
Book Value Per Share (Diluted) $3.43 $3.31 $3.33 $3.31 $3.39 $3.40 $3.46 $3.58 $3.77
($ thousands)Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
Assets
Cash and cash equivalents $73,636 $63,588 $61,104 $59,530 $50,692 $49,812 $55,516 $55,851 $51,523
Restricted cash 49,004 50,811 68,530 58,659 51,312 53,007 54,859 53,024 52,133
Loans held for investment 946,884 1,044,815 1,003,103 960,587 953,492 983,988 1,025,143 1,081,259 1,141,401
Less: Allowance for loan losses (95,059) (115,597) (110,542) (103,397) (106,199) (114,839) (121,899) (129,804) (137,960)
Loans held for investment, net 851,825 929,218 892,561 857,190 847,293 869,149 903,244 951,455 1,003,441
Loans held for sale 941 856 561 -- -- -- -- -- --
Property, equipment and software, net 29,902 28,812 27,776 25,919 24,110 20,866 17,182 16,591 16,364
Other assets 19,680 19,717 18,030 17,843 15,775 14,026 15,782 15,967 17,423
Total assets $1,024,988 $1,093,002 $1,068,562 $1,019,141 $989,182 $1,006,860 $1,046,583 $1,092,888 $1,140,884
Liabilities and equity
Liabilities:
Accounts payable $3,906 $4,356 $3,412 $3,077 $2,961 $2,853 $3,627 $4,318 $4,475
Interest payable 1,821 2,298 2,461 2,300 2,226 2,300 2,519 2,402 2,337
Debt 701,727 791,802 771,732 721,679 691,476 703,307 737,099 771,483 805,527
Accrued expenses and other liabilities 34,401 36,383 31,347 32,276 31,392 31,410 29,856 31,645 31,768
Total liabilities 741,855 834,839 808,952 759,332 728,055 739,870 773,101 809,848 844,107
Total OnDeck Capital, Inc. stockholders' equity 278,649 253,346 253,260 254,731 $256,848 263,195 268,060 277,570 291,893
Noncontrolling Interest 4,484 4,816 6,350 5,077 $4,279 3,795 5,422 5,470 4,884
Total Equity 283,133 258,162 259,610 259,808 261,127 266,990 273,482 283,040 296,777
Total liabilities and equity $1,024,988 $1,093,002 $1,068,562 $1,019,141 $989,182 $1,006,860 $1,046,583 $1,092,888 $1,140,884
Memo:
Unpaid Principal Balance $929,304 $1,023,882 $984,812 $944,372 $937,021 $966,327 $1,006,133 $1,060,222 $1,118,140
Loans $947,824 $1,045,671 $1,003,664 $960,587 $953,492 $983,988 $1,025,143 $1,081,259 $1,141,401
Interest Earning Assets $1,069,028 $1,159,208 $1,132,736 $1,078,776 $1,055,496 $1,086,807 $1,135,519 $1,190,134 $1,245,057
($ thousands, except share and per share data) Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
Revenue:
Interest income $76,118 $87,111 $83,721 $80,122 $83,621 $86,369 $92,371 $99,476 $105,363
Gain on sales of loans 1,817 1,484 260 146 595 -- -- -- --
Other revenue 3,894 4,297 2,670 3,398 3,525 3,911 3,247 3,523 4,116
Gross revenue 81,829 92,892 86,651 83,666 87,741 90,280 95,618 102,999 109,479
Cost of revenue:
Provision for loan losses 55,669 46,180 32,733 39,582 34,431 36,293 33,293 39,102 39,853
Funding costs 10,128 11,630 11,934 11,365 11,270 11,872 12,245 11,728 11,230
Total cost of revenue 65,797 57,810 44,667 50,947 45,701 48,165 45,538 50,830 51,083
Net revenue 16,032 35,082 41,984 32,719 42,040 42,115 50,080 52,169 58,396
Operating expenses:
Sales and marketing 16,917 14,819 15,368 11,903 10,696 10,598 11,432 10,845 11,207
Technology and analytics 16,005 15,443 14,769 11,748 11,432 11,007 12,799 13,418 13,642
Processing and servicing 5,458 4,535 4,826 4,160 4,554 5,221 5,041 5,302 5,645
General and administrative 14,112 11,887 9,590 9,440 10,999 17,725 16,034 13,107 14,467
Total operating expenses 52,492 46,684 44,553 37,251 37,682 44,551 45,306 42,672 44,961
Income (loss) from operations (36,460) (11,602) (2,569) (4,532) 4,358 (2,436) 4,774 9,497 13,435
Provision for income taxes - - - - - - - - -
Net income (loss) (36,460) (11,602) (2,569) (4,532) 4,358 (2,436) 4,774 9,497 13,435
Net income (loss) attributable to non-controlling interest (603) (544) (1,071) (458) (738) (518) (1,016) (272) (604)
Net income (loss) attributable to OnDeck ($35,857) ($11,058) ($1,498) ($4,074) $5,096 ($1,918) $5,790 $9,769 $14,039
Net income (loss) per share attributable to OnDeck
Basic EPS ($0.50) ($0.15) ($0.02) ($0.06) $0.07 ($0.03) $0.08 $0.13 $0.19
Weighted Avg. Basic Shares Outstanding 71,487,566 71,854,287 72,688,815 73,272,085 73,708,613 73,977,241 74,385,446 74,715,592 75,504,595
Diluted EPS ($0.50) ($0.15) ($0.02) ($0.06) $0.07 ($0.03) $0.07 $0.12 $0.18
Weighted Avg. Diluted Shares Outstanding 71,487,566 71,854,287 72,688,815 73,272,085 77,153,920 73,977,241 78,288,267 79,372,491 79,591,252
Quarter Ended
Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
Revenue:
Interest income 28.2% 30.5% 29.6% 29.5% 31.4% 32.2% 32.6% 33.2% 33.6%
Gain on sales of loans 0.7% 0.5% 0.1% 0.1% 0.2% 0.0% 0.0% 0.0% 0.0%
Other revenue 1.4% 1.5% 0.9% 1.2% 1.3% 1.5% 1.1% 1.2% 1.3%
Gross revenue 30.4% 32.5% 30.7% 30.8% 33.0% 33.7% 33.8% 34.3% 34.9%
Cost of revenue:
Provision for loan losses 20.7% 16.2% 11.6% 14.6% 12.9% 13.5% 11.8% 13.0% 12.7%
Funding costs 3.8% 4.1% 4.2% 4.2% 4.2% 4.4% 4.3% 3.9% 3.6%
Total cost of revenue 24.4% 20.2% 15.8% 18.7% 17.2% 18.0% 16.1% 16.9% 16.3%
Net revenue 5.9% 12.3% 14.9% 12.0% 15.8% 15.7% 17.7% 17.4% 18.6%
Operating expenses:
Sales and marketing 6.3% 5.2% 5.4% 4.4% 4.0% 4.0% 4.0% 3.6% 3.6%
Technology and analytics 5.9% 5.4% 5.2% 4.3% 4.3% 4.1% 4.5% 4.5% 4.3%
Processing and servicing 2.0% 1.6% 1.7% 1.5% 1.7% 1.9% 1.8% 1.8% 1.8%
General and administrative 5.2% 4.2% 3.4% 3.5% 4.1% 6.6% 5.7% 4.4% 4.6%
Total operating expenses 19.5% 16.3% 15.8% 13.7% 14.2% 16.6% 16.0% 14.2% 14.3%
Income (loss) from operations -13.5% -4.1% -0.9% -1.7% 1.6% -0.9% 1.7% 3.2% 4.3%
Income (loss) before provision for income taxes -13.5% -4.1% -0.9% -1.7% 1.6% -0.9% 1.7% 3.2% 4.3%
Provision for income taxes 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Net income (loss) -13.5% -4.1% -0.9% -1.7% 1.6% -0.9% 1.7% 3.2% 4.3%
Net income (loss) attributable to OnDeck -13.3% -3.9% -0.5% -1.5% 1.9% -0.7% 2.1% 3.3% 4.5%
Memo:
Average Interest Earning Assets ($ thousands) $1,069,028 $1,159,208 $1,132,736 $1,078,776 $1,055,496 $1,086,807 $1,135,519 $1,190,134 $1,245,057
Quarter Ended
($ thousands)Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
By Delinquency Status:
Current loans 890,297$ 922,921$ 859,904$ 835,320$ 850,060$ 904,660$ 938,369$ 1,002,932$ 1,031,449$
1-14 calendar days past due 25,889 23,340 24,805 34,724 23,611 21,080 18,466 22,573 27,655
Current loans - 14 calendar days past due 916,186 946,261 884,709 870,044 873,671 925,740 956,835 1,025,505 1,059,104
15-29 calendar days past due 15,990 17,568 12,263 20,055 12,528 12,068 12,722 10,261 14,665
30-59 calendar days past due 22,677 28,503 25,322 20,975 22,059 19,557 17,788 18,671 21,470
60-89 calendar days past due 13,952 20,676 19,226 15,658 12,809 13,850 14,320 15,161 19,031
15-89 calendar days past due 52,619 66,747 56,811 56,688 47,396 45,475 44,830 44,093 55,166
90 + calendar days past due 11,636 13,150 12,289 14,148 15,172 21,380 24,921 26,194 30,684
Total Unpaid Principal Balance 980,441$ 1,026,158$ 953,809$ 940,880$ 936,239$ 992,595$ 1,026,586$ 1,095,792$ 1,144,954$
Delinquencies % of UPB:
Current loans 90.8% 89.9% 90.2% 88.8% 90.8% 91.1% 91.4% 91.5% 90.1%
1-14 calendar days past due 2.6% 2.3% 2.6% 3.7% 2.5% 2.1% 1.8% 2.1% 2.4%
Current loans - 14 calendar days past due 93.4% 92.2% 92.8% 92.5% 93.3% 93.3% 93.2% 93.6% 92.5%
15-29 calendar days past due 1.6% 1.7% 1.3% 2.1% 1.3% 1.2% 1.2% 0.9% 1.3%
30-59 calendar days past due 2.3% 2.8% 2.7% 2.2% 2.4% 2.0% 1.7% 1.7% 1.9%
60-89 calendar days past due 1.4% 2.0% 2.0% 1.7% 1.4% 1.4% 1.4% 1.4% 1.7%
15-89 calendar days past due 5.4% 6.5% 6.0% 6.0% 5.1% 4.5% 4.4% 4.0% 4.8%
90 + calendar days past due 1.2% 1.3% 1.3% 1.5% 1.6% 2.2% 2.4% 2.4% 2.7%
Total Unpaid Principal Balance 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Allowance for Loan Losses Rollforward:
Allowance for loan losses beginning of period 87,368$ 110,162$ 118,075$ 105,217$ 104,872$ 109,015$ 118,921$ 124,058$ 133,644$
+ Provision for loan losses 55,669 46,180 32,733 39,582 34,431 36,293 33,293 39,102 39,853
- Gross charge-offs (34,975) (40,884) (49,817) (45,257) (35,314) (29,732) (31,362) (32,822) (36,779)
+ Recoveries 2,100 2,617 4,226 5,330 5,026 3,345 3,206 3,306 3,322
Allowance for Loan Losses end of period 110,162$ 118,075$ 105,217$ 104,872$ 109,015$ 118,921$ 124,058$ 133,644$ 140,040$
®
Dec 31, 2016
Mar 31, 2017
Jun 30, 2017
Sep 30, 2017
Dec 31, 2017
Mar 31,2018
Jun 30,2018
Sep 30,2018
Dec 31,2018
% of UPB Term Loans 88% 88% 87% 87% 86% 85% 85% 85% 84%
Line of Credit 12% 12% 13% 13% 14% 15% 15% 15% 16%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100%
15+ Day Past Due Rate Term Loans 6.7% 8.0% 7.6% 7.8% 7.0% 7.1% 7.1% 6.7% 7.9%
Line of Credit 5.1% 6.4% 4.7% 5.6% 5.3% 4.9% 5.0% 5.0% 5.5%
Total 6.6% 7.8% 7.2% 7.5% 6.7% 6.7% 6.8% 6.4% 7.5%
Reserve Ratio Term Loans 11.3% 11.6% 11.2% 11.2% 11.6% 11.9% 11.9% 12.1% 12.0%
Line of Credit 10.7% 11.0% 9.6% 10.7% 11.6% 12.4% 12.9% 12.9% 13.2%
Total Portfolio 11.2% 11.5% 11.0% 11.1% 11.6% 12.0% 12.1% 12.2% 12.2%
Net Charge-off Rate Term Loans 14.3% 15.0% 18.4% 17.3% 13.2% 11.2% 11.7% 11.4% 12.7%
Line of Credit 12.8% 14.8% 19.4% 14.3% 11.4% 10.4% 8.3% 9.4% 7.8%
Total Portfolio 14.2% 14.9% 18.5% 16.9% 12.9% 10.9% 11.2% 11.1% 12.0%
Portfolio Averages Weighted Average Loan Age (Months) (Term Loans) 3.9 4.5 4.9 4.5 4.2 4.0 4.0 3.8 3.8
Weighted Average Remaining Term (Months) (Term Loans) 11.2 10.4 9.7 9.6 9.6 9.5 9.4 9.5 9.4
Weighted Average FICO®(1) Score 695 698 699 698 701 704 705 705 704
Total Originations Originations Volume (millions) $632 $573 $464 $531 $546 $591 $587 $648 $658
% Line of Credit Draws 15.9% 18.0% 22.0% 19.6% 20.0% 20.5% 20.7% 19.8% 21.5%
Average APR 42.9% 44.0% 43.2% 43.8% 43.8% 46.0% 47.1% 47.5% 47.0%
Average Maturity (Months) (Term Loans) 12.8 12.3 11.8 12.1 12.2 11.8 11.8 11.9 11.7
% Direct 52.2% 52.7% 54.0% 51.7% 50.1% 47.9% 45.6% 44.1% 44.7%
% Funding Advisor 28.4% 28.5% 24.3% 26.6% 27.8% 28.8% 29.2% 31.1% 28.3%
% Strategic Partners 19.4% 18.8% 21.7% 21.6% 22.1% 23.3% 25.1% 24.8% 27.0%
5.5%
9.0%
6.4%
4.4%
5.5%
6.8% 6.9% 7.0%6.7%
8.2%
6.6%
5.1%
5.9% 5.8%
4.9%
3.9%
0.8%
0.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
9.6 11.1 8.8 7.5 8.7 9.2 10.0 11.2 12.3 13.2 12.3 11.8 12.1 12.2 11.8 11.8 11.9 11.7
Dec 31,
2014
Dec 31,
2015
Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dep 31,
2018
Initial Loan Amount $1,100 $1,712 $2,072 $476 $369 $433 $445 $477 $475 $531 $537
Month 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Month 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0%
Month 2 0.0% 0.1% 0.0% 0.0% 0.0% 0.1% 0.0% 0.1% 0.2% 0.0%
Month 3 0.2% 0.2% 0.2% 0.3% 0.2% 0.3% 0.3% 0.3% 0.4% 0.2%
Month 4 0.8% 0.8% 0.8% 1.0% 0.9% 1.2% 1.0% 0.8% 1.1%
Month 5 1.9% 1.5% 1.8% 2.2% 1.7% 1.7% 1.9% 1.8% 2.0%
Month 6 3.0% 2.4% 2.9% 3.1% 2.4% 2.5% 2.8% 2.6% 3.1%
Month 7 4.0% 3.3% 4.2% 4.1% 2.8% 3.4% 3.4% 3.2%
Month 8 4.6% 4.0% 5.1% 4.9% 3.2% 4.0% 4.1% 4.0%
Month 9 5.3% 4.7% 5.9% 5.6% 3.6% 4.5% 4.5% 4.5%
Month 10 5.7% 5.3% 6.5% 6.0% 4.0% 4.9% 4.9%
Month 11 5.9% 5.7% 7.0% 6.2% 4.4% 5.3% 5.1%
Month 12 6.2% 6.0% 7.4% 6.3% 4.6% 5.5% 5.5%
Month 13 6.3% 6.3% 7.7% 6.3% 4.7% 5.6%
Month 14 6.6% 6.4% 7.9% 6.5% 4.9% 5.8%
Month 15 6.7% 6.6% 8.0% 6.5% 5.0% 5.8%
Month 16 6.9% 6.6% 8.1% 6.6% 5.0%
Month 17 6.9% 6.7% 8.2% 6.6% 5.1%
Month 18 7.0% 6.8% 8.2% 6.6% 5.1%
Month 19 7.0% 6.8% 8.3% 6.7%
Month 20 7.0% 6.8% 8.3% 6.6%
Month 21 7.0% 6.9% 8.3% 6.6%
Month 22 7.1% 6.9% 8.2%
Month 23 7.1% 6.8% 8.2%
Month 24 7.1% 6.8% 8.2%
Month 25 7.1% 6.8%
Month 26 7.1% 6.8%
Month 27 7.1% 6.8%
Month 28 7.1% 6.8%
Month 29 7.1% 6.8%
($ millions, except percentage data)
Dec 31,
2014
Dec 31,
2015
Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Dec 31,
2017
Mar 31,
2018
Jun 31,
2018
Sep 30,
2018
Dec 31,
2018
Initial Loan Amount $954 $1,248 $1,722 $434 $360 $417 $438 $477 $475 $531 $537
Month 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Month 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0%
Month 2 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.1% 0.2% 0.0%
Month 3 0.2% 0.2% 0.2% 0.3% 0.2% 0.4% 0.2% 0.3% 0.4% 0.2%
Month 4 0.7% 0.8% 0.8% 1.0% 0.9% 1.2% 0.9% 0.8% 1.1%
Month 5 1.7% 1.4% 1.9% 2.2% 1.8% 1.7% 1.9% 1.8% 2.0%
Month 6 2.6% 2.2% 3.0% 3.1% 2.4% 2.4% 2.8% 2.6% 3.1%
Month 7 3.5% 3.0% 4.2% 4.1% 2.8% 3.4% 3.4% 3.2%
Month 8 4.1% 3.6% 5.2% 4.8% 3.2% 4.0% 4.1% 4.0%
Month 9 4.7% 4.2% 6.0% 5.6% 3.6% 4.5% 4.5% 4.5%
Month 10 5.0% 4.7% 6.5% 6.0% 4.1% 4.8% 4.9%
Month 11 5.3% 4.9% 7.0% 6.2% 4.4% 5.2% 5.1%
Month 12 5.6% 5.1% 7.4% 6.3% 4.6% 5.4% 5.5%
Month 13 5.7% 5.3% 7.7% 6.4% 4.8% 5.5%
Month 14 5.9% 5.4% 7.9% 6.5% 5.0% 5.6%
Month 15 6.0% 5.4% 8.0% 6.6% 5.0% 5.7%
Month 16 6.2% 5.4% 8.1% 6.7% 5.1%
Month 17 6.3% 5.5% 8.1% 6.7% 5.1%
Month 18 6.3% 5.5% 8.2% 6.7% 5.2%
Month 19 6.3% 5.6% 8.2% 6.7%
Month 20 6.3% 5.6% 8.2% 6.7%
Month 21 6.3% 5.6% 8.2% 6.7%
Month 22 6.3% 5.6% 8.2%
Month 23 6.3% 5.6% 8.2%
Month 24 6.3% 5.6% 8.2%
Month 25 6.4% 5.6%
Month 26 6.4% 5.6%
Month 27 6.4% 5.6%
Month 28 6.4% 5.6%
Month 29 6.4% 5.5%
($ millions, except percentage data)
($ millions)
As of December 31, 2018
Borrower Type Maturity DateWeighted Average
Interest RatePrincipal Outstanding Borrowing Capacity
OnDeck Asset Securitization Trust II LLC Securitization April 2022 (1) 3.8% $225 $225
OnDeck Account Recievables Trust 2013-1 LLC Revolving March 2019 5.1% $118 $214
Recievable Assets of OnDeck, LLC Revolving September 2021 (2) 4.7% $114 $120
OnDeck Asset Funding II LLC Revolving August 2022 (3) 5.3% $110 $175
Prime OnDeck Recievable Trust II, LLC Revolving March 2019 5.0% $109 $125
Loan Assets of OnDeck, LLC Revolving October 2022 (4) 4.3% $100 $100
On Deck Capital, Inc. Revolving January 2019 (5)(6) 6.5% - $30
Other Agreements Various Various (7) Various $47 $79
Total Debt 4.7% $822 $1,068
($ thousands, except per share data)Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
Net income (loss) $5,096 ($1,918) $5,790 $9,769 $14,039
Adjustments:
Stock-based compensation expense 2,994 3,210 2,794 2,848 2,967
Real estate disposition charges - 4,187 - - -
Severance and executive transition expenses - 911 - - -
Debt Extinguishment Costs - - 1,384 550 -
Sales Tax Refund - - - - (1,097)
Adjusted Net income (loss) (1) (2) $8,090 $6,390 $9,968 $13,167 $15,909
Adjusted Net income (loss) per share (3)
Basic $0.11 $0.09 $0.13 $0.18 $0.21
Diluted $0.10 $0.08 $0.13 $0.17 $0.20
Weighted-average common shares outstanding:
Basic 73,708,613 73,977,241 74,385,446 74,715,592 75,504,595
Diluted 77,153,920 77,352,294 78,288,267 79,372,491 79,591,252
Quarter Ended
($ thousands)
Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
Total Operating Expense $37,682 $44,551 $45,306 $42,672 $44,961
Gross Revenue 87,741 90,280 95,618 102,999 109,479
Efficiency Ratio 42.9% 49.3% 47.4% 41.4% 41.1%
Stock-based compensation expense 2,994 3,210 2,794 2,848 2,967
Real estate disposition charges - 4,187 - - -
Severance and executive transition expenses - 911 - - -
Debt Extinguishment Costs - - 1,384 550 -
Sales Tax Refund - - - - (1,097)
Operating Expense Less Noteworthy Items $34,688 $36,243 $41,128 $39,274 $43,091
Gross Revenue 87,741 90,280 95,618 102,999 109,479
Adjusted Efficiency Ratio (1) 39.5% 40.1% 43.0% 38.1% 39.4%
Quarter Ended
($ thousands)
Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
Net income (loss) $5,096 ($1,918) $5,790 $9,769 $14,039
Average Total Assets 989,182 1,006,860 1,046,583 1,092,888 1,140,884
Return on Assets 2.1% (0.8%) 2.2% 3.6% 4.9%
Stock-based compensation expense 2,994 3,210 2,794 2,848 2,967
Real estate disposition charges - 4,187 - - -
Severance and executive transition expenses - 911 - - -
Debt Extinguishment Costs - - 1,384 550 -
Sales Tax Refund - - - - (1,097)
Adjusted Net income (1)(2) $8,090 $6,390 $9,968 $13,167 $15,909
Average Total Assets 989,182 1,006,860 1,046,583 1,092,888 1,140,884
Adjusted Return on Assets (3) 3.3% 2.5% 3.8% 4.8% 5.6%
Quarter Ended
($ thousands)
Dec 31,
2017
Mar 31,
2018
Jun 30,
2018
Sep 30,
2018
Dec 31,
2018
Net income (loss) $5,096 ($1,918) $5,790 $9,769 $14,039
Average OnDeck Stockholders' Equity 256,848 263,195 268,060 277,570 291,893
Return on Equity 7.9% (2.9%) 8.6% 14.1% 19.2%
Stock-based compensation expense 2,994 3,210 2,794 2,848 2,967
Real estate disposition charges - 4,187 - - -
Severance and executive transition expenses - 911 - - -
Debt Extinguishment Costs - - 1,384 550 -
Sales Tax Refund - - - - (1,097)
Adjusted Net income (1)(2) $8,090 $6,390 $9,968 $13,167 $15,909
Average OnDeck Stockholders' Equity 256,848 263,195 268,060 277,570 291,893
Adjusted Return on Equity (3) 12.6% 9.7% 14.9% 19.0% 21.8%
Quarter Ended
($ millions)
Low High Low High
Net income attributable to On Deck Capital, Inc.
common stockholders$2 $6 $20 $30
Stock based compensation (after tax) 3 3 10 10
Adjusted Net income (1)(2) $5 $9 $30 $40
Twelve Months Ending,
December 31, 2019
Three Months Ending,
March 31, 2019