On Deck Capital, Inc. (NYSE:ONDK) Files An 8-K Regulation FD Disclosure

Mid-Quarter Update

During the month of May, On Deck Capital, Inc. (the \”Company\”) has continued to execute against the COVID-19 response plan outlined in our first quarter earnings call on April 30^th. We have made substantial progress on increasing the percentage of customers in paying relationships, negotiating amendments to our warehouse funding facilities, delivering PPP loans to small businesses, managing to our expense targets, and preparing our strategy to recommence U.S. term loan and line of credit originations in June. We remain committed to transparency with all stakeholders, including our customers, business partners, investors, creditors and employees, and are thus providing this mid-quarter update.

Portfolio delinquency has been generally stable and the percentage of delinquent loan balances in repayment improved since April 30^th.

Significant progress on liquidity management.

Supporting the Paycheck Protection Program (PPP)

Preparing to Restart Term Loan and Line of Credit Originations

The COVID-19 pandemic continues to have a profound impact on the small business lending environment. We are generally tracking to the second quarter origination and expense targets discussed during our first quarter earnings call. We plan to align our second half 2020 origination strategy and operating expense to fit our liquidity position and the operating environment to position the Company for success as the pandemic abates and the economy begins to recover.

The information set forth under this Item 7.01 and Item 9.01 shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

Safe Harbor Statement

The information in this Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority. Forward-looking statements can be identified by words such as \”will,\” \”enables,\” \”targets,\” \”expects,\” \”intends,\” \”may,\” \”allows,\” \”plans,\” \”continues,\” \”believes,\” \”anticipates,\” \”estimates\” or similar expressions. These include statements regarding the impact of global economic, political, market, health and social events or conditions, including the impact of the COVID-19 outbreak; portfolio stabilization and improvements in delinquencies and payment trends; our ability to meet the conditions of, and remain in compliance with, the terms of our amended debt facilities, or cure deficiencies under our other debt facilities or obtain additional waivers or amendments to avoid the risk of default under our corporate line and international facilities; our ability to fund originations and support the Paycheck Protection Program; recommencement of term loans and lines of credit for qualifying customers; realization of benefits related to cost cutting actions; our business model, including changes in our origination strategy and expense base; pandemic abatement and economic recovery; and other external factors. They are based only on our current beliefs, expectations and assumptions regarding the future of our business, anticipated events and trends, the economy and other future conditions. As such, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and in many cases outside our control. In particular, the consequences of the COVID-19 outbreak to economic conditions and our industry in general are changing rapidly and present material uncertainty with respect to our financial position and operating results. Therefore, you should not rely on any of these forward-looking statements. Our expected results may not be achieved, and actual results may differ materially from our expectations.

Important factors that could cause or contribute to such differences include risks relating to: (1) our ability to maintain continuity and productivity in our business operations given our transition to a remote workforce; (2) changes in our loan originations volume, collections activities and our customers\’ ability to repay amounts borrowed under our term loan, line of credit or equipment finance products; (3) disruption and volatility in the global capital markets which increases the cost of capital and adversely impacts our access to capital from committed facilities and lenders, and our ability to maintain adequate liquidity; (4) recent and future changes to our underwriting standards and other operating policies and procedures and whether those changes work as intended; (5) the impact of the COVID-19 outbreak on our business partners, vendors and other third parties and their ability to perform under contractual or other arrangements; (6) our ability to estimate future performance of our businesses, particularly over the near- to medium-term due to uncertainty surrounding COVID-19; (7) the ability of our customers to perform, including in making timely payments, due to disruptions in their supply chains; (8) changes in our growth strategies or strategic initiatives, including our ability to pursue a bank charter, introduce new products or features, expand our platform to other lenders through ODX, expand into international markets and engage in business development activities; (9) our ability and willingness to make repurchases of our common stock under our previously announced share repurchase program; (10) worsening economic conditions that may result in decreased demand for our loans or services and increase our customers\’ default rates; (11) supply and demand driven changes in credit and increases in the availability of capital for our competitors that negatively impacts our loan pricing; (12) our ability to accurately assess creditworthiness and forecast and reserve for loan losses given the dynamic environment and our recent adoption of CECL; (13) the effectiveness of our efforts to identify, manage and mitigate our credit, market, liquidity, operational and other risks associated with our business and strategic objectives; (14) our reputation and possible adverse publicity about us or our industry, including actions we have taken or may take in response to the COVID-19 outbreak; (15) changes in federal or state laws or regulations, or judicial decisions, or other significant changes, including those related to the COVID-19 outbreak; and other risks, including those described in Part II – Item 1A. Risk Factors in our Form 10-Q for the quarter ended March 31, 2020, Part I – Item 1A. Risk Factors in our Annual Report on From 10-K for the year ended December 31, 2019, and other documents that we file with the Securities and Exchange Commission, or SEC, from time to time which are or will be available on the SEC website at www.sec.gov.

Information in this Current Report on Form 8-K is not an offer or recommendation to buy or sell securities or the solicitation of an offer to buy or sell securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

(d) Exhibits.

On Deck Capital, Inc. Exhibit
EX-99.1 2 midquarterupdateinvestor.htm EXHIBIT 99.1 midquarterupdateinvestor               $1 $1 $1 $1 Total Return $1 $1 Total Return $1 $1 $1 Total $1 Return LTV $1 $0 LTV $1 $0 LTV CAC CAC $0 CAC $0 $0 $0 $0 $0 $0   Retail Trade Construction Accommodation & Food Services Wholesale Trade Manufacturing Health Care & Social Assistance Professional,…
To view the full exhibit click here

About On Deck Capital, Inc. (NYSE:ONDK)

On Deck Capital, Inc. offers an online platform for small business lending. The Company’s platform aggregates and analyzes data points from disparate data sources to assess the creditworthiness of small businesses. Small businesses apply for a term loan or line of credit on the Company’s Website, and using its OnDeck Score, the Company makes a funding decision and transfers the funds. It offers a financing solution for small businesses, including short-term loans of over 10 months and long-term loans of over 40 months, and lines of credit. The Company’s integrated platform includes the Company’s Website, which allows small businesses to apply for a loan, round the clock; data and analytics engine, which analyzes data attributes from disparate sources to assess the real-time creditworthiness of a small business; the technology, which offers funding of loans, and daily and weekly collections, and ongoing servicing system.