Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39606 | |
Entity Registrant Name | SoFi Technologies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-1547291 | |
Entity Address, Address Line One | 234 1st Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 855 | |
Local Phone Number | 456-7634 | |
Title of 12(b) Security | Common stock, $0.0001 par value per share | |
Trading Symbol | SOFI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 915,824,337 | |
Entity Central Index Key | 0001818874 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and cash equivalents | $ 1,325,135 | $ 494,711 | |
Restricted cash and restricted cash equivalents | [1] | 377,077 | 273,726 |
Investments in available-for-sale securities (amortized cost of $205,114 and $195,796, respectively) | 199,840 | 194,907 | |
Loans, less allowance for credit losses on loans | [1] | 7,222,001 | 6,068,884 |
Servicing rights | 173,505 | 168,259 | |
Securitization investments | 325,370 | 374,688 | |
Equity method investments | 0 | 19,739 | |
Property, equipment and software | 131,537 | 111,873 | |
Goodwill | 1,615,694 | 898,527 | |
Intangible assets | 505,526 | 284,579 | |
Operating lease right-of-use assets | 112,400 | 115,191 | |
Other assets, less allowance for credit losses of $1,652 and $2,292, respectively | 258,491 | 171,242 | |
Total assets | 12,246,576 | 9,176,326 | |
Deposits: | |||
Noninterest-bearing deposits | 95,598 | 0 | |
Interest-bearing deposits | 1,060,324 | 0 | |
Total deposits | 1,155,922 | 0 | |
Accounts payable, accruals and other liabilities | [1] | 437,319 | 298,164 |
Operating lease liabilities | 135,955 | 138,794 | |
Debt | [1] | 4,916,175 | 3,947,983 |
Residual interests classified as debt | [1] | 70,532 | 93,682 |
Total liabilities | 6,715,903 | 4,478,623 | |
Commitments, guarantees, concentrations and contingencies (Note 15) | |||
Temporary equity: | |||
Redeemable preferred stock | [2] | 320,374 | 320,374 |
Equity [Abstract] | |||
Common stock | [3] | 91 | 83 |
Additional paid-in capital | 6,509,643 | 5,561,831 | |
Accumulated other comprehensive loss | (5,964) | (1,471) | |
Accumulated deficit | (1,293,471) | (1,183,114) | |
Total permanent equity | 5,210,299 | 4,377,329 | |
Total liabilities, temporary equity and permanent equity | $ 12,246,576 | $ 9,176,326 | |
[1] | Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 5.(2)As of March 31, 2022 and December 31, 2021, includes loans held for sale measured at fair value of $7,002,885 and $5,952,972, respectively. | ||
[2] | Redemption amounts are $323,400 as of March 31, 2022 and December 31, 2021. | ||
[3] | Includes 100,000,000 non-voting common shares authorized and no non-voting common shares issued and outstanding as of March 31, 2022 and December 31, 2021. See Note 11 for additional information. |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investments in available-for-sale securities, amortized cost | $ 205,114 | $ 195,796 |
Loans held for investment, allowance for credit loss | 17,866 | 7,037 |
Other assets, allowance for credit loss | $ 1,652 | $ 2,292 |
Redeemable preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Redeemable preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Redeemable preferred stock, shares issued (in shares) | 3,234,000 | 3,234,000 |
Redeemable preferred stock, shares outstanding (in shares) | 3,234,000 | 3,234,000 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 3,100,000,000 | 3,100,000,000 |
Common stock, shares issued (in shares) | 915,673,855 | 828,154,462 |
Common stock, shares outstanding (in shares) | 915,673,855 | 828,154,462 |
Total loans at fair value | $ 7,002,885 | $ 5,952,972 |
Redemption amount | $ 323,400 | $ 323,400 |
Non-Voting Common Stock | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income | ||
Loans | $ 114,385 | $ 77,221 |
Securitizations | 2,758 | 4,467 |
Related party notes | 0 | 211 |
Other | 1,269 | 629 |
Total interest income | 118,412 | 82,528 |
Interest expense | ||
Securitizations and warehouses | 19,906 | 29,808 |
Deposits | 431 | 0 |
Corporate borrowings | 2,649 | 5,008 |
Other | 493 | 432 |
Total interest expense | 23,479 | 35,248 |
Net interest income | 94,933 | 47,280 |
Noninterest income | ||
Loan origination and sales | 157,704 | 110,345 |
Securitizations | (11,281) | (2,036) |
Servicing | 12,236 | (12,109) |
Technology products and solutions | 59,857 | 45,659 |
Other | 16,895 | 6,845 |
Total noninterest income | 235,411 | 148,704 |
Total net revenue | 330,344 | 195,984 |
Noninterest expense | ||
Technology and product development | 81,908 | 65,948 |
Sales and marketing | 138,138 | 87,234 |
Cost of operations | 70,437 | 57,570 |
General and administrative | 136,505 | 161,697 |
Provision for credit losses | 12,961 | 0 |
Total noninterest expense | 439,949 | 372,449 |
Loss before income taxes | (109,605) | (176,465) |
Income tax expense | (752) | (1,099) |
Net loss | (110,357) | (177,564) |
Other comprehensive loss | ||
Unrealized losses on available-for-sale securities, net | (4,455) | 0 |
Foreign currency translation adjustments, net | (38) | (80) |
Total other comprehensive loss | (4,493) | (80) |
Comprehensive loss | $ (114,850) | $ (177,644) |
Loss per share (Note 16) | ||
Loss per share - basic (in dollars per share) | $ (0.14) | $ (1.61) |
Loss per share - diluted (in dollars per share) | $ (0.14) | $ (1.61) |
Weighted average common stock outstanding - basic (in shares) | 852,853,596 | 116,152,593 |
Weighted average common stock outstanding - diluted (in shares) | 852,853,596 | 116,152,593 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Changes in Temporary Equity and Permanent Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | |
Beginning balance (in shares) at Dec. 31, 2020 | 115,084,358 | |||||
Beginning balance at Dec. 31, 2020 | $ (120,115) | $ 0 | $ 579,228 | $ (166) | $ (699,177) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 37,454 | 37,454 | ||||
Vesting of RSUs (in shares) | 3,654,434 | |||||
Stock withheld related to taxes on vested RSUs (in shares) | (1,399,716) | |||||
Stock withheld related to taxes on vested RSUs | (25,989) | (25,989) | ||||
Exercise of common stock options (in shares) | 1,679,838 | |||||
Exercise of common stock options | 2,624 | 2,624 | ||||
Redeemable preferred stock dividends | (9,968) | (9,968) | ||||
Net loss | (177,564) | (177,564) | ||||
Other comprehensive loss, net of taxes | (80) | (80) | ||||
Ending balance (in shares) at Mar. 31, 2021 | 119,018,914 | |||||
Ending balance at Mar. 31, 2021 | $ (293,638) | $ 0 | 583,349 | (246) | (876,741) | |
Temporary equity, beginning balance (in shares) at Dec. 31, 2020 | 469,150,522 | |||||
Temporary equity, beginning balance at Dec. 31, 2020 | $ 3,173,686 | |||||
Temporary equity, ending balance (in shares) at Mar. 31, 2021 | 469,150,522 | |||||
Temporary equity, ending balance at Mar. 31, 2021 | $ 3,173,686 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 828,154,462 | 828,154,462 | ||||
Beginning balance at Dec. 31, 2021 | $ 4,377,329 | $ 83 | 5,561,831 | (1,471) | (1,183,114) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 81,617 | 81,617 | ||||
Vesting of RSUs (in shares) | 4,951,204 | |||||
Vesting of RSUs | 0 | 0 | ||||
Stock withheld related to taxes on vested RSUs (in shares) | (343,698) | |||||
Stock withheld related to taxes on vested RSUs | $ (3,593) | (3,593) | ||||
Exercise of common stock options (in shares) | 1,055,775 | 1,055,775 | ||||
Exercise of common stock options | $ 1,867 | 1,867 | ||||
Issuance of common stock in acquisition (in shares) | 81,856,112 | |||||
Issuance of common stock in acquisition | 875,042 | $ 8 | 875,034 | |||
Vested awards assumed in acquisition | 2,855 | 2,855 | ||||
Redeemable preferred stock dividends | (9,968) | (9,968) | ||||
Net loss | (110,357) | (110,357) | ||||
Other comprehensive loss, net of taxes | $ (4,493) | (4,493) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 915,673,855 | 915,673,855 | ||||
Ending balance at Mar. 31, 2022 | $ 5,210,299 | $ 91 | $ 6,509,643 | $ (5,964) | $ (1,293,471) | |
Temporary equity, beginning balance (in shares) at Dec. 31, 2021 | 3,234,000 | |||||
Temporary equity, beginning balance at Dec. 31, 2021 | [1] | $ 320,374 | ||||
Temporary equity, ending balance (in shares) at Mar. 31, 2022 | 3,234,000 | |||||
Temporary equity, ending balance at Mar. 31, 2022 | [1] | $ 320,374 | ||||
[1] | Redemption amounts are $323,400 as of March 31, 2022 and December 31, 2021. |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Operating activities | |||
Net loss | $ (110,357) | $ (177,564) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 30,698 | 25,977 | |
Deferred debt issuance and discount expense | 4,209 | 5,998 | |
Share-based compensation expense | 77,021 | 37,454 | |
Deferred income taxes | (40) | 623 | |
Fair value changes in residual interests classified as debt | 2,963 | 7,951 | |
Fair value changes in securitization investments | 6,545 | (2,957) | |
Fair value changes in warrant liabilities | 0 | 89,920 | |
Other | 16,180 | (139) | |
Changes in operating assets and liabilities: | |||
Originations and purchases of loans | (3,599,870) | (2,575,932) | |
Proceeds from sales and repayments of loans | 2,491,409 | 2,911,540 | |
Other changes in loans | 58,548 | 30,486 | |
Servicing assets | (5,246) | (11,643) | |
Related party notes receivable interest income | 0 | 1,399 | |
Other assets | (13,623) | 3,299 | |
Accounts payable, accruals and other liabilities | 30,339 | (6,361) | |
Net cash provided by (used in) operating activities | (1,011,224) | 340,051 | |
Investing activities | |||
Purchases of property, equipment, software and intangible assets | (25,114) | (7,445) | |
Proceeds from repayment of related party notes receivable | 0 | 16,693 | |
Purchases of available-for-sale investments | (36,825) | 0 | |
Proceeds from sales of available-for-sale investments | 17,651 | 0 | |
Proceeds from maturities and paydowns of available-for-sale investments | 11,964 | 0 | |
Changes in loans, net | (33,884) | 0 | |
Proceeds from non-securitization investments | 0 | 107,534 | |
Proceeds from securitization investments | 42,773 | 64,165 | |
Acquisition of businesses, net of cash acquired | 73,314 | 0 | |
Net cash provided by investing activities | 49,879 | 180,947 | |
Financing activities | |||
Proceeds from debt issuances | 3,569,960 | 1,925,042 | |
Repayment of debt | (2,632,625) | (2,912,263) | |
Payment of debt issuance costs | (2,165) | (1,645) | |
Net increase in deposits | 961,834 | 0 | |
Taxes paid related to net share settlement of share-based awards | (3,593) | (25,989) | |
Purchases of common stock | 0 | (526) | |
Redemptions of redeemable common and preferred stock | 0 | (132,859) | |
Proceeds from stock option exercises | 1,867 | 2,624 | |
Finance lease principal payments | (120) | (163) | |
Net cash provided by (used in) financing activities | 1,895,158 | (1,145,779) | |
Effect of exchange rates on cash and cash equivalents | (38) | (80) | |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 933,775 | (624,861) | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 768,437 | 1,323,428 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 1,702,212 | 698,567 | |
Reconciliation to amounts on unaudited condensed consolidated balance sheets (as of period end) | |||
Cash and cash equivalents | 1,325,135 | 351,283 | |
Restricted cash and restricted cash equivalents | 377,077 | [1] | 347,284 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 1,702,212 | 698,567 | |
Supplemental non-cash investing and financing activities | |||
Issuance of common stock in acquisition | 875,042 | 0 | |
Vested awards assumed in acquisition | 2,855 | 0 | |
Loans received in acquisition | 84,485 | 0 | |
Debt assumed in acquisition | 2,000 | 0 | |
Deposits assumed in acquisition | 158,016 | 0 | |
Deposits credited but not yet received in cash | 36,072 | 0 | |
Available-for-sale securities received in acquisition | 10,014 | 0 | |
Property, equipment and software received in acquisition | 3,192 | 0 | |
Non-cash loan reduction | 375 | 0 | |
Share-based compensation capitalized related to internally-developed software | 4,596 | 0 | |
Redeemable preferred stock dividends accrued but unpaid | 9,968 | 9,968 | |
Securitization investments acquired via loan transfers | 0 | 26,381 | |
Non-cash property, equipment, software and intangible asset additions | $ 0 | $ 888 | |
[1] | Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 5.(2)As of March 31, 2022 and December 31, 2021, includes loans held for sale measured at fair value of $7,002,885 and $5,952,972, respectively. |
Organization, Summary of Signif
Organization, Summary of Significant Accounting Policies and New Accounting Standards | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Summary of Significant Accounting Policies and New Accounting Standards | Organization, Summary of Significant Accounting Policies and New Accounting Standards Organization Social Finance, Inc. (“Social Finance”) entered into a merger agreement (the “Agreement”) with Social Capital Hedosophia Holdings Corp. V (“SCH”) on January 7, 2021. The transactions contemplated by the terms of the Agreement were completed on May 28, 2021 (the “Closing”), in conjunction with which SCH changed its name to SoFi Technologies, Inc. (hereafter referred to, collectively with its subsidiaries, as “SoFi”, the “Company”, “we”, “us” or “our”, unless the context otherwise requires). The transactions contemplated in the Agreement are collectively referred to as the “Business Combination”. Upon the closing of the Business Combination, holders of Social Finance common stock received shares of SoFi Technologies common stock in an amount determined by application of the exchange ratio of 1.7428 (“Exchange Ratio”), which was based on Social Finance’s implied price per share prior to the Business Combination. Additionally, holders of Social Finance preferred stock (with the exception of the holders of our Series 1 Redeemable Preferred Stock, as defined in Note 10) received shares of SoFi Technologies common stock in amounts determined by application of either the Exchange Ratio or a multiplier of the Exchange Ratio, as provided by the Agreement. SoFi is a financial services platform that was founded in 2011 to offer an innovative approach to the private student loan market by providing student loan refinancing options. The Company conducts its business through three reportable segments: Lending, Technology Platform and Financial Services. Since its founding, SoFi has expanded its lending strategy to offer home loans, personal loans and credit cards. The Company has also developed non-lending financial products, such as money management and investment product offerings, and has also leveraged its financial services platform to empower other businesses. The Company has continued to expand its product offerings through strategic acquisitions. During 2020, the Company expanded its investment product offerings into Hong Kong, and also began to operate as a platform-as-a-service for a variety of financial service providers, providing the infrastructure to facilitate core client-facing and back-end capabilities, such as account setup, account funding, direct deposit, authorizations and processing, payments functionality and check account balance features. During 2022, the Company became a bank holding company and began operating as SoFi Bank, National Association, and expanded its platform to include a cloud-native digital and core banking platform with customers in Latin America, allowing the Company to expand its technology platform services to a broader international market. For additional information on our recent business combinations, see Note 2. For additional information on our reportable segments, see Note 17. Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and certain consolidated VIEs. All intercompany accounts were eliminated in consolidation. The unaudited condensed consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the SEC. We condensed or omitted certain notes and other financial information from the interim financial statements presented herein. The financial data and other information disclosed in these Notes to Unaudited Condensed Consolidated Financial Statements related to the three months ended March 31, 2022 and 2021 are unaudited and should be read in conjunction with the annual consolidated statements included in our annual filing on Form 10-K filed with the SEC on March 1, 2022. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the Company’s financial condition and results of operations and cash flows for the interim periods presented. The results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022. In our unaudited condensed consolidated statements of operations and comprehensive income (loss), we renamed the financial statement line item for noninterest income—technology platform fees to noninterest income—technology products and solutions to accommodate noninterest income earned from Technisys, which we acquired in the first quarter of 2022. See Note 1 for our presentation of disaggregated revenue and Note 2 for our discussion of business combinations. As a result of the Business Combination completed on May 28, 2021, prior period share and per share amounts presented in the accompanying unaudited condensed consolidated financial statements and these related notes have been retroactively converted in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations . Use of Judgments, Assumptions and Estimates The preparation of our unaudited condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the amounts reported in our unaudited condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of our assets and liabilities. These judgments, assumptions and estimates include, but are not limited to, the following: (i) fair value measurements; (ii) share-based compensation expense; (iii) consolidation of variable interest entities; and (iv) business combinations. These judgments, estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions. Cash and Cash Equivalents Cash and cash equivalents primarily include unrestricted deposits with financial institutions in checking, money market and short-term certificate of deposit accounts and certain short-term commercial paper. We consider all highly liquid investments with original maturity dates of three months or less to be cash equivalents. Restricted Cash and Restricted Cash Equivalents Restricted cash and restricted cash equivalents consist primarily of cash deposits, certificate of deposit accounts held on reserve, money market funds held by consolidated VIEs, and collection balances. These accounts are earmarked as restricted because the balances are either member balances held in our custody, cash segregated for regulatory purposes associated with brokerage activities, escrow requirements for certain debt facilities and derivative agreements, deposits required by various bank holding companies we partner with (“Member Banks”) that support one or more of our products, loan collection balances awaiting disbursement, consolidated VIE cash balances that we cannot use for general operating purposes, or other legally restricted balances. Loans Our loan portfolio consists of (i) personal loans, student loans and home loans, which are held for sale and measured at fair value, and (ii) credit card loans, and commercial and consumer banking loans acquired in the first quarter of 2022, which are measured at amortized cost. The commercial and consumer banking portfolio is primarily inclusive of commercial real estate loans, commercial and industrial loans and residential real estate and other consumer loans. Loans Measured at Fair Value Loans that we intend to sell to third-party purchasers or for which we do not have the ability and intent to hold for the foreseeable future are classified as held for sale. We elected the fair value option to measure our personal loans, student loans and home loans, as we believe that fair value best reflects the expected economic performance of the loans, as well as our intentions given our gain-on-sale origination model. Therefore, these loans are carried at fair value on a recurring basis. All direct fees and costs related to the origination process are recognized in earnings as earned or incurred. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). We record cash flows related to loans held for sale within cash flows from operating activities in the unaudited condensed consolidated statements of cash flows. Securitized loans are assets held by consolidated special purpose entities (“SPE”) as collateral for bonds issued, for which fair value changes are recorded within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Gains or losses recognized upon deconsolidation of a VIE are also recorded within noninterest income—securitizations . Loans Measured at Amortized Cost For our loans measured at amortized cost, direct loan origination costs are deferred and amortized on a straight-line basis over the privilege period (12 months) for credit card loans and amortized using the effective interest method over the contractual term of the loans for commercial and consumer banking loans, within interest income—loans in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2022, we amortized $1,597 of deferred costs into interest income and had a remaining balance of deferred costs of $4,127 as of March 31, 2022. Commercial and consumer banking loans are reported as delinquent when they become 30 or more days past due. For all commercial and consumer banking loans, we stop accruing interest and reverse all accrued but unpaid interest after 90 days of delinquency. For consumer banking loans, delinquent loans are charged off after 120 days of delinquency or on the date of confirmed loss. Purchased Credit Deteriorated Assets In connection with the Bank Merger, as further discussed in Note 2, we obtained purchased credit deteriorated (“PCD”) loans. PCD loans are acquired financial assets (or groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination. Indicators that an acquired asset may meet the definition of a PCD asset include days past due status, nonaccrual status, troubled debt restructuring status and other loan agreement violations. We were required to record an allowance for the acquired PCD loans, with a corresponding increase to the amortized cost basis as of the acquisition date. Recognition of the initial allowance for credit losses upon the acquisition of PCD loans does not impact net income. Changes in estimates of expected credit losses after acquisition are recognized through the provision for credit losses. See Note 7 for the rollforward of our allowance for credit losses. Troubled Debt Restructuring In connection with the Bank Merger, as further discussed in Note 2, we obtained troubled debt restructuring (“TDR”) loans. TDR loans are those for which the contractual terms have been restructured to grant one or more concessions to a borrower who is experiencing financial difficulty. Concessions may include several types of assistance to aid customers and maximize payments received, and vary by borrower-specific characteristics. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs. TDRs identified by Golden Pacific prior to the acquisition were recorded at fair value with a new accounting basis established as of the date of acquisition. There were no modifications subsequent to acquisition. Allowance for Credit Losses As of March 31, 2022, we applied ASC 326, Financial Instruments—Credit Losses (“ASC 326”), to the following: (i) cash equivalents and restricted cash equivalents, (ii) accounts receivable from contracts with customers, inclusive of servicing related receivables, (iii) margin receivables, which were attributable to our activities at 8 Limited, (iv) certain loan repurchase reserves representing guarantees of credit exposure, (v) loans measured at amortized cost, including credit card, and commercial and consumer banking loans acquired during the first quarter of 2022, and (vi) investments in available-for-sale debt securities. Our approaches to measuring the allowance for credit losses are disclosed in our Annual Report on Form 10-K, with notable updates provided herein. Credit card : Our estimate of the allowance for credit losses on credit card as of March 31, 2022 and December 31, 2021 was $16,500 and $7,037, respectively. Accrued interest receivables written off during the three months ended March 31, 2022 were $451 and during the three months ended March 31, 2021 were immaterial. See Note 7 for a rollforward of the allowance for credit losses related to credit card. Investments in Available-For-Sale Debt Securities An allowance for credit losses on our investments in available-for-sale (“AFS”) debt securities is required for any portion of impaired securities that is attributable to credit-related factors. As of March 31, 2022, we concluded that the credit- related impairment was immaterial. We did not recognize an allowance for credit losses on impaired investments in AFS debt securities as of March 31, 2022. Equity Method Investments In August 2021, we purchased a 5% interest in Lower Holding Company (“Lower”) for $20,000 and were granted a seat on Lower’s board of directors. We accounted for the investment under the equity method of accounting. The investment was not deemed to be significant under either Regulation S-X, Rule 3-09 or Rule 4-08(g). In January 2022, we relinquished our seat on Lower’s board of directors, and have no further rights to a seat on Lower’s board of directors. As such, we no longer have significant influence over the investee, and we ceased recognizing Lower equity investment income subsequent to that date. Our equity method investment income for the three months ended March 31, 2022 was immaterial. Additionally, we did not receive any distributions during the three months ended March 31, 2022. As of March 31, 2022, our investment was presented within other assets in the unaudited condensed consolidated balance sheets and was measured using the measurement alternative method of accounting, which is further discussed in Note 8. Property, Equipment and Software Software includes software acquired in business combinations, purchased software and capitalized software development costs. The capitalization of software development costs is based on whether the software is for internal use, or is to be sold or otherwise marketed. Costs related to internally-developed software for internal use are capitalized when preliminary project efforts are successfully completed, and it is probable that both the project will be completed and the software will be used as intended. For software to be sold or marketed, development costs are capitalized after the technological feasibility of the software has been established. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts and costs incurred for upgrades and functionality enhancements. Research and development costs incurred prior to the establishment of technological feasibility (for software to be sold or marketed) or prior to completion of preliminary project efforts (for internal use software) are expensed as incurred. Deposits We commenced offering deposit accounts (referred to as “SoFi Checking and Savings” accounts) to our members through SoFi Bank in the first quarter of 2022. Our interest-bearing deposits primarily consist of demand deposits, savings deposits and, to a lesser extent, time deposits. We also have noninterest-bearing deposits. The following table presents a detail of interest-bearing deposits as of the date indicated: March 31, 2022 Interest-bearing deposits: Demand deposits (1) $ 753,134 Savings deposits (1) 293,003 Time deposits 14,187 Total interest-bearing deposits $ 1,060,324 _____________________ (1) For deposit liabilities with no defined maturities, the fair value of the liabilities reflects the amount payable on demand at the reporting date. As of March 31, 2022, the amount of time deposits that exceeded the insured limit (referred to as “uninsured deposits”) totaled $7,537. As of March 31, 2022, future maturities of our total time deposits were as follows: Remainder of 2022 $ 10,206 2023 2,774 2024 794 2025 30 2026 281 Thereafter 102 Total $ 14,187 Derivative Financial Instruments The following table presents the gains (losses) recognized on our derivative instruments during the periods indicated: Three Months Ended March 31, 2022 2021 Derivative contracts to manage future loan sale execution risk (1) $ 160,607 $ 36,071 Derivative contracts to manage securitization investment interest rate risk (1)(2) 6,319 — IRLCs (1) (6,798) (8,502) Interest rate caps (1) (2,124) — Purchase price earn-out (1) 831 — Third-party warrants (3) 75 — Total $ 158,910 $ 27,569 _____________________ (1) Recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). (2) Represents derivative instruments utilized to manage interest rate risk associated with certain of our securitization investments. (3) For the three months ended March 31, 2022, includes $(142) recorded within noninterest income—other and $217 recorded within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss), the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired of $964, as we are also a customer of the third party. The following table presents information about derivative instruments subject to enforceable master netting arrangements as of the dates indicated: March 31, 2022 December 31, 2021 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Interest rate swaps $ — $ (7,985) $ 5,444 $ — Interest rate caps — (2,792) — (668) Home loan pipeline hedges 9,684 (150) 117 (313) Total, gross $ 9,684 $ (10,927) $ 5,561 $ (981) Less: derivative netting (2,942) 2,942 (117) 117 Total, net (1) $ 6,742 $ (7,985) $ 5,444 $ (864) _____________________ (1) As of March 31, 2022 and December 31, 2021, we had a cash collateral requirement of $7,985 and $299, respectively, related to these instruments. The following table presents the notional amounts of derivative contracts outstanding as of the dates indicated: March 31, 2022 December 31, 2021 Derivative contracts to manage future loan sale execution risk: Interest rate swaps $ 4,885,000 $ 4,210,000 Home loan pipeline hedges 457,000 421,000 Interest rate caps 405,000 405,000 Interest rate swaps (1) 310,000 — IRLCs (2) 465,491 357,529 Interest rate caps (3) 405,000 405,000 Total $ 6,927,491 $ 5,798,529 _____________________ (1) Represents interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments. (2) Amounts correspond with home loan funding commitments subject to IRLC agreements. (3) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk. While the notional amounts of derivative instruments give an indication of the volume of our derivative activity, they do not necessarily represent amounts exchanged by parties and are not a direct measure of our financial exposure. See Note 8 for additional information on our derivative assets and liabilities. Foreign Currency Translation Adjustments We revalue assets, liabilities, income and expense denominated in non-United States currencies into United States dollars using applicable exchange rates. For foreign subsidiaries in which the functional currency is the subsidiary’s local currency, gains and losses relating to foreign currency translation adjustments are included in accumulated other comprehensive loss in our unaudited condensed consolidated balance sheets. For foreign subsidiaries in which the functional currency is the United States Dollar, gains and losses relating to foreign currency transaction adjustments are included within earnings in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Due to the highly inflationary economic environment in Argentina, we use the United States Dollar as the functional currency of our Argentinian operations in accordance with ASC 830, Foreign Currency Matters . Our activities in Argentina are related to our Technology Platform segment and commenced in the first quarter of 2022 with the Technisys Merger. Revenue Recognition In accordance with ASC 606, Revenue From Contracts With Customers (“ASC 606”), in each of our revenue arrangements, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects our expected consideration in exchange for those goods or services. Our arrangements accounted for under ASC 606 are discussed in our Annual Report on Form 10-K, with notable updates provided herein. Technology Products and Solutions We earn fees for providing an integrated platform as a service for financial and non-financial institutions. Within our technology products and solutions fee arrangements, certain contracts contain a provision for a fixed, upfront implementation fee related to setup activities, which represents an advance payment for future technology platform services. In these arrangements our implementation fees are recognized ratably over the contract life, as we consider the implementation fee partially earned each month that we meet our performance obligation over the life of the contract. In other arrangements, we receive software license and solutions fees in advance of performance, which are also deferred, and the revenue is not recognized until the related performance obligations are met. Commencing in March 2022 with the Technisys Merger, we earn subscription and service fees for providing software licenses and associated services. Software license and service arrangements comprise one or more software licenses, implementation, maintenance, and other software-related services. We recognize revenue related to software licenses upon delivery of the license, as we consider the license to be satisfied at a point in time. Software is considered delivered when control passes to the customer following the user-acceptance testing period. We recognize revenue related to maintenance ratably over the maintenance period, as we stand ready to provide maintenance services during the period. We recognize revenue related to other software-related services over time using an input model based on hours incurred to provide the services, which directly correspond with the value to which the customer is entitled. We charge a recurring subscription fee for the software license and related maintenance services. Other software-related services are billed on a periodic basis as the services are provided. Certain arrangements for software and related services contain a provision for a fixed upfront payment, which represents an upfront payment for the license and an advance payment for future services. The standalone selling price of maintenance varies in proportion with the standalone selling price of the underlying license. We allocate upfront payments and any other combined fee between the license and maintenance based upon the standalone selling price. The portion of any upfront payment relating to the license is recognized upon delivery of the license (and deferred until that point in time). The portion of any upfront payment relating to future services is accounted for as deferred revenue and is recognized as the future services are provided. Non-maintenance software-related services fees are recognized over the period during which the services are provided, as we consider these services to be satisfied over time. We had deferred revenues of $6,887 and $2,553 as of March 31, 2022 and December 31, 2021, respectively, which are presented within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets. During the three months ended March 31, 2022, we recognized revenue of $785 associated with deferred revenues within noninterest income—technology products and solutions in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2021, we recognized revenue of $156 associated with deferred revenues. Sales commissions: Capitalized sales commissions presented within other assets in the unaudited condensed consolidated balance sheets, which are incurred in connection with obtaining our technology products and solutions, were $850 and $678 as of March 31, 2022 and December 31, 2021, respectively. Additionally, we incur ongoing monthly commissions, which are expensed as incurred, as the benefit of such sales efforts are realized only in the period in which the commissions are earned. During the three months ended March 31, 2022 and 2021, commissions recorded within noninterest expense—sales and marketing in the unaudited condensed consolidated statements of operations and comprehensive income (loss) were $1,121 and $809, respectively, of which $82 and $64, respectively, represented amortization of capitalized sales commissions. Referrals We earn specified referral fees in connection with referral activities we facilitate through our platform. This arrangement contains variable consideration that is constrained due to the potential reversal of referral fulfillment fees. We recognize a liability within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets for the estimated referral fulfillment fee penalty, which represents the amount of consideration received that we estimate will reverse. The liability was $293 and $118 as of March 31, 2022 and December 31, 2021, respectively. Contract Balances As of March 31, 2022 and December 31, 2021, accounts receivable, net associated with revenue from contracts with customers were $53,103 and $33,748, respectively, which were reported within other assets in the unaudited condensed consolidated balance sheets. The increase in contract balances during the current quarter includes the effect of the Technisys Merger, which contributed $17,390 to the balance as of March 31, 2022. Disaggregated Revenue The table below presents revenue from contracts with customers disaggregated by type of service, which best depicts how the revenue and cash flows are affected by economic factors, and by the reportable segment to which each revenue stream relates. Revenues from contracts with customers are presented within noninterest income—technology products and solutions and noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). There were no revenues from contracts with customers attributable to our Lending segment for any of the periods presented. Three Months Ended March 31, 2022 2021 Financial Services Referrals $ 7,768 $ 2,254 Brokerage 4,730 4,612 Payment network 4,286 1,202 Enterprise services 203 58 Total $ 16,987 $ 8,126 Technology Platform Technology services $ 59,157 $ 45,659 Software licenses 700 — Payment network 178 442 Total $ 60,035 $ 46,101 Total Revenue from Contracts with Customers Technology services $ 59,157 $ 45,659 Software licenses 700 — Referrals 7,768 2,254 Brokerage 4,730 4,612 Payment network 4,464 1,644 Enterprise services 203 58 Total $ 77,022 $ 54,227 Recently Adopted Accounting Standards In October 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, rather than at fair value. The standard should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We early adopted the standard effective January 1, 2022 and applied its provisions to our current quarter acquisitions. The adoption of this standard did not have a material impact on our consolidated financial statements. Recent Accounting Standards Issued, But Not Yet Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The ASU addresses two topics: (i) TDR by creditors, and (ii) vintage disclosures for gross write offs. Under the TDR provisions, the ASU eliminates the recognition and measurement guidance under ASC 310-40, Receivables — Troubled Debt Restructurings by Creditors, and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan, consistent with the accounting for other loan modifications. Additionally, the ASU enhances existing disclosure requirements around TDRs and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Under the vintage disclosure provisions, the ASU requires the entity to disclose current period gross write offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20, Financial Instruments — Credit Losses — Measured at Amortized Cost . The standard is effective for fiscal years and interim periods beginning after December 15, 2022. Early adoption is permitted. If an entity elects to early adopt this standard in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt either of the two topics separately, or both. The standard should be applied prospectively; however, for the TDR provisions, an entity has the option to apply a modified retrospective transition method. We are currently evaluating the effect of adopting this standard on our consolidated financial statements and related disclosures. In March 2022, the SEC released Staff Accounting Bulletin No. 121 (“SAB 121”), which provides interpretive guidance for an entity to consider when it has obligations to safeguard crypto-assets held for its platform users, whether directly or through an agent or another third party acting on its behalf, and regardless of its assessment as to who controls the crypto-assets. SAB 121 requires an entity to record a liability to reflect its obligation to safeguard the crypto-assets, as well as a corresponding asset, both of which should be measured at the fair value of the crypto-assets held for the entity’s users. Entities should evaluate any potential loss events, such as theft, loss or destruction of the cryptographic keys, that may affect the measurement of the asset. SAB 121 also requires financial statement disclosure, including the nature and amount of crypto-assets that the entity holds for its users, any vulnerabilities that may arise as a result of any concentration in crypto-assets, and information about who is responsible for the record-keeping of the crypto-assets, the holding of the cryptographic keys and safeguarding the crypto-assets, among other disclosure considerations. Disclosures must also be made in accordance with ASC 820, Fair Value Measurement (“ASC 820”). SAB 121 is effective for SEC registrants for the first interim or annual financial statements ending after June 15, 2022, with retrospective application as of the beginning of the fiscal year to which the interim or annual period relates. We are currently evaluating the approach |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Acquisition of Golden Pacific Bancorp, Inc. On February 2, 2022, we acquired Golden Pacific Bancorp, Inc., a bank holding company, and its wholly-owned subsidiary, which is a national bank (collectively referred to as “Golden Pacific”), pursuant to an Agreement and Plan of Merger dated as of March 8, 2021 by and among the Company, a wholly-owned subsidiary of the Company, and Golden Pacific. In the business combination, we acquired all of the outstanding equity interests in Golden Pacific for total cash purchase consideration of $22.3 million (the “Bank Merger”). After closing the Bank Merger, we became a bank holding company and Golden Pacific began operating as SoFi Bank, National Association (“SoFi Bank”). We are duly registered as a bank holding company with the Board of Governors of the Federal Reserve System (the “Federal Reserve”). SoFi Bank is a national banking association whose primary federal regulator is the Office of the Comptroller of the Currency (the “OCC”). Deposit accounts of SoFi Bank are insured by the Federal Deposit Insurance Corporation (the “FDIC”) through the Deposit Insurance Fund to the fullest extent permitted by law. The closing of the Bank Merger was subject to regulatory approval. On January 18, 2022, we received approval from the Federal Reserve of our application to become a bank holding company under the Bank Holding Company Act, and we received conditional approval from the OCC to close the Bank Merger. The OCC also approved our application to change the composition of Golden Pacific’s assets in connection with the Bank Merger. The OCC conditional approval imposed a number of conditions, including that SoFi Bank have initial paid-in capital of no less than $750 million and adhere to an operating agreement. Golden Pacific’s community bank business continues to operate as a division of SoFi Bank. A portion of the total cash purchase consideration ($0.6 million) was held back by the Company to satisfy any indemnification or certain other obligations (“Holdback Amount”), as certain legal proceedings with which Golden Pacific is involved as a plaintiff were not resolved at the time the Bank Merger closed. The Holdback Amount will be used for further financing or costs incurred associated with the litigation and any remaining amount upon resolution of the litigation will be released to the Golden Pacific shareholders. Additionally, we held back a $3.3 million payable to a dissenting Golden Pacific shareholder pending resolution of the shareholder’s appraisal claim, which could possibly result in a lower or higher amount paid to the dissenting shareholder once a ruling is made regarding the appraisal claim. The Bank Merger was accounted for as a business combination. The preliminary purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date, which were measured in accordance with the principles outlined in ASC 820. The excess of the total purchase consideration over the fair value of the net assets acquired of $11.2 million was allocated to goodwill, none of which is expected to be deductible for tax purposes, and which is allocated to our Financial Services segment. Goodwill is primarily attributable to the expected benefits of operating a national bank. The results of operations of Golden Pacific are included in SoFi’s consolidated financial statements as of and for the three months ended March 31, 2022. As the acquisition was not determined to be a significant acquisition under ASC 805, we are not disclosing the pro forma impact of this acquisition to the results of operations in our interim and annual filings with the SEC. Identifiable intangible net assets at the date of acquisition included finite-lived intangible assets for core deposits with an aggregate fair value of $1.0 million. The intangible assets are being amortized over a period of 7.3 years based on the estimated economic life of the underlying assets. We incurred total acquisition-related costs related to the Bank Merger of $2.2 million, which were incurred during the three months ended March 31, 2021, and are presented within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Acquisition of Technisys S.A. On March 3, 2022, we acquired Technisys S.A., a Luxembourg société anonyme (“Technisys”), pursuant to an Agreement and Plan of Merger dated as of February 19, 2022 and amended as of March 3, 2022, by and among the Company, Technisys, Atom New Delaware, Inc., a Delaware corporation and a wholly owned subsidiary of Atom, and Atom Merger Sub Corporation, a Delaware corporation and wholly owned subsidiary of SoFi Technologies (“Technisys Merger”). In the business combination, we acquired all of the outstanding equity interests in Technisys. Technisys is a cloud-native digital and core banking platform with an existing footprint of financial services customers in Latin America. The Technisys Merger was accounted for as a business combination. The following table presents the components of the purchase consideration to acquire Technisys: Fair value of common stock issued (1) $ 875,042 Fair value of awards assumed (2) 2,855 Amounts payable to settle vested employee performance awards (3) 37,297 Settlement of pre-combination transactions between acquirer and acquiree 235 Total purchase consideration $ 915,429 ___________________ (1) Reflects the shares of SoFi common stock issued upon closing the acquisition of 81,856,112, inclusive of 6,903,663 shares held in escrow, multiplied by the closing stock price of SoFi common stock on the closing date of the Technisys Merger. As of March 31, 2022, the purchase price allocation process for Technisys was not finalized, as further discussed below. (2) We contemporaneously converted outstanding performance awards into restricted stock units (“RSUs”) to acquire common stock of SoFi (“Replacement Awards”). The fair value of awards assumed in the purchase consideration was based on the closing stock price of SoFi common stock on the closing date of the Technisys Merger. (3) We made payments of $2,868 related to this component of purchase consideration through March 31, 2022. Refer to Note 12 for additional information on our RSUs, including the Replacement Awards. As of March 31, 2022, the equity component of the total purchase consideration remained subject to further adjustment, pending final agreement regarding a closing net working capital calculation specified in the merger agreement. Any further adjustment to the equity consideration, which may increase or decrease by up to 598,068 shares, would similarly impact the carrying value of recognized goodwill, but would not impact the estimated fair values of the assets acquired and liabilities assumed in conjunction with the transaction. The following table presents the allocation of the preliminary total purchase consideration to the estimated fair values of the identified assets acquired and liabilities assumed of Technisys as of the date of acquisition, as well as a reconciliation to the total consideration transferred: Assets acquired Cash and cash equivalents $ 25,710 Accounts receivable (1) 15,354 Intangible assets (2) 239,000 Operating lease right-of-use (“ROU”) assets 587 Other assets 1,011 Total identifiable assets acquired 281,662 Liabilities assumed Accounts payable, accruals and other liabilities 16,462 Operating lease liabilities 587 Deferred income taxes (3) 55,104 Total liabilities assumed 72,153 Total identified net assets acquired 209,509 Goodwill (4) 705,920 Total consideration $ 915,429 _________________ (1) Includes accounts receivable and unbilled revenue with a gross contractual amount of $17,710. At the date of acquisition, the Company expected $2,356 to be uncollectible. (2) Intangible assets consist of finite-lived intangible assets, as follows: Gross carrying amount Weighted-average useful life (years) Developed technology (a) $ 187,000 8.8 Customer-related (b) 42,000 4.8 Trade names, trademarks and domain names (c) 10,000 8.8 __________________ (a) Valued using the Multi-Period Excess Earnings Method (“MPEEM”), which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset (and include an assumed technology migration curve), contributory asset charges and the applicable tax rate, and (ii) an assumed discount rate, which reflects the risk of the asset relative to the overall risk of Technisys. (b) Valued using the With and Without Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual revenues and net cash flows both with the existing customer base and without the existing customer base, which include assumptions regarding revenue ramp-up periods and attrition rates, and (ii) an assumed discount rate, consistent with (a) above. (c) Valued using the Relief from Royalty Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset, the probability of use of the asset, the royalty rate and the applicable tax rate, and (ii) the discount rate, consistent with (a) above. (3) The deferred tax liabilities recognized in the acquisition were primarily related to the acquired intangible assets recognized at a fair value of $239.0 million, in which the acquiree had a significantly lower tax basis. (4) The excess of the total purchase consideration over the fair value of the identified net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. The goodwill is subject to change based on the outcome of the net working capital calculation referenced earlier in this footnote. Goodwill is primarily attributable to expected growth opportunities at Technisys, and secondarily attributable to the expected synergies from leveraging the Technisys technology to enhance and expand Galileo’s product offerings and operations, as well as expand its market reach. As such, all of the goodwill is allocated to the Technology Platform segment. The Company incurred total acquisition-related costs related to the Technisys Merger of $19.8 million, of which $3.3 million were incurred during the year ended December 31, 2021, and $16.5 million were incurred during the three months ended March 31, 2022, which were presented within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss). From the date of acquisition through March 31, 2022, the acquired results of operations for Technisys contributed total net revenue of $6.2 million and net loss of $1.8 million to the Company’s consolidated results, which was inclusive of amortization expense recognized on the acquired intangible assets. The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations for the three months ended March 31, 2022 and 2021 as if the business combination had occurred on January 1, 2021: Three Months Ended March 31, 2022 2021 Total net revenue $ 342,109 $ 208,943 Net loss (103,983) (201,317) The unaudited supplemental pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the actual results of operations that would have been achieved, nor is it indicative of future results of operations. The unaudited supplemental pro forma financial information reflects pro forma adjustments that give effect to applying the Company’s accounting policies and certain events the Company believes to be directly attributable to the acquisition. The pro forma adjustments primarily include: • incremental straight-line amortization expense associated with acquired intangible assets; • an adjustment to reflect post-combination share-based compensation expense associated with the Replacement Awards as if the conversion had occurred on January 1, 2021; • an adjustment to reflect acquisition-related costs for both parties as if they were incurred during the earliest period presented; and • the related income tax effects, at the statutory tax rate applicable for each period, of the pro forma adjustments noted above. The unaudited supplemental pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Technisys. Goodwill A rollforward of our goodwill balance is presented below as of the date indicated: March 31, 2022 Beginning balance $ 898,527 Less: accumulated impairment — Beginning balance, net 898,527 Additional goodwill recognized (1) 717,167 Ending balance (2) $ 1,615,694 _____________________ (1) The additional goodwill recognized as of March 31, 2022 includes $705,920 related to the Technisys Merger and $11,247 related to the Bank Merger. (2) As of March 31, 2022, we had goodwill attributable to the following reportable segments: $1,578,535 to Technology Platform and $37,159 to Financial Services. |
Investments in AFS Debt Securit
Investments in AFS Debt Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in AFS Debt Securities | Investments in AFS Debt SecuritiesIn the third quarter of 2021, we began investing in debt securities. As of March 31, 2022 and December 31, 2021, all of our investments in debt securities were classified as available-for-sale. During the first quarter of 2022, we acquired additional investments in AFS debt securities with the Bank Merger. The following table presents our investments in AFS debt securities as of the dates indicated. March 31, 2022 Amortized Cost (1) Accrued Interest Gross Unrealized Gains Gross Unrealized Losses (2) Fair Value Investments in AFS debt securities (3) : U.S. Treasury securities $ 119,450 $ 181 $ — $ (2,597) $ 117,034 Multinational securities (4) 19,849 74 — (594) 19,329 Corporate bonds 43,081 239 — (1,883) 41,437 Agency mortgage-backed securities 10,393 26 — (281) 10,138 Other asset-backed securities 9,596 5 — (366) 9,235 Other (5) 2,745 10 — (88) 2,667 Total investments in AFS debt securities $ 205,114 $ 535 $ — $ (5,809) $ 199,840 December 31, 2021 Amortized Cost Accrued Interest Gross Unrealized Gains Gross Unrealized Losses (2) Fair Value Investments in AFS debt securities (3) : U.S. Treasury securities $ 103,014 $ 73 $ — $ (584) $ 102,503 Multinational securities (4) 19,911 109 — (154) 19,866 Corporate bonds 39,894 235 — (480) 39,649 Agency TBA (6) 7,457 13 4 (8) 7,466 Agency mortgage-backed securities 4,153 14 — (31) 4,136 Other asset-backed securities 9,610 5 — (91) 9,524 Commercial paper 9,939 — — — 9,939 Other (5) 1,818 13 — (7) 1,824 Total investments in AFS debt securities $ 195,796 $ 462 $ 4 $ (1,355) $ 194,907 _____________________ (1) Amortized cost basis reflects the amortization of premiums of $291 during the three months ended March 31, 2022. (2) As of March 31, 2022 and December 31, 2021, we determined that our unrealized loss positions related to credit losses were immaterial. Additionally, we do not intend to sell the securities in loss positions nor is it more likely than not that we will be required to sell the securities prior to recovery of the amortized cost basis. Further, no such investments have been in a continuous unrealized loss position for more than 12 months. (3) Investments in AFS debt securities are recorded at fair value. (4) Includes sovereign foreign and supranational bonds. (5) Includes state and city municipal bond securities. (6) Represented to-be-announced (“TBA”) securities, which were securities that were delivered under the purchase contract at a later date when the underlying security was issued. The December 31, 2021 balance was paid in cash during 2022. The following table presents the amortized cost and fair value of our investments in AFS debt securities by contractual maturity as of the date indicated: Due Within One Year Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Total March 31, 2022 Investments in AFS debt securities—Amortized cost: U.S. Treasury securities $ 25,336 $ 94,114 $ — $ — $ 119,450 Multinational securities — 19,849 — — 19,849 Corporate bonds — 39,716 3,365 — 43,081 Agency mortgage-backed securities 3 20 824 9,546 10,393 Other asset-backed securities — 7,600 1,996 — 9,596 Other 600 1,212 — 933 2,745 Total investments in AFS debt securities $ 25,939 $ 162,511 $ 6,185 $ 10,479 $ 205,114 Weighted average yield for investments in AFS debt securities (1) (3.68) % (8.77) % (10.94) % (10.29) % (8.27) % Investments in AFS debt securities—Fair value (2) : U.S. Treasury securities $ 24,974 $ 91,879 $ — $ — $ 116,853 Multinational securities — 19,255 — — 19,255 Corporate bonds — 37,952 3,246 — 41,198 Agency mortgage-backed securities 3 20 801 9,288 10,112 Other asset-backed securities — 7,309 1,921 — 9,230 Other 597 1,186 — 874 2,657 Total investments in AFS debt securities $ 25,574 $ 157,601 $ 5,968 $ 10,162 $ 199,305 _____________________ (1) The weighted average yield represents the effective yield for the investment securities and is computed based on the amortized cost of each security as of March 31, 2022. (2) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $535 as of March 31, 2022. The following table presents the gross proceeds and gross realized gains and losses from sales, maturities and paydowns of our investments in AFS debt securities during the three months ended March 31, 2022. Realized gains and losses are presented within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). There were no transfers between classifications of our investments in AFS debt securities during the period presented. Three Months Ended Investments in AFS debt securities Gross realized gains included in earnings $ — Gross realized losses included in earnings (161) Net realized losses (161) Gross proceeds from sales, maturities and paydowns (1) $ 29,615 _____________________ (1) Proceeds from maturities and paydowns of investments in AFS debt securities were $11,964 during the three months ended March 31, 2022. See Note 11 for unrealized gains and losses on our investments in AFS debt securities and amounts reclassified out of accumulated other comprehensive income (loss) (“AOCI”). |
Loans
Loans | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans | Loans As of March 31, 2022, our loan portfolio consisted of personal loans, student loans and home loans, which are measured at fair value under the fair value option election, and loans measured at amortized cost, including credit card, and commercial and consumer banking 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, as of the dates indicated: March 31, December 31, 2022 2021 Loans at fair value Securitized student loans $ 513,378 $ 574,328 Securitized personal loans 177,179 234,576 Student loans 3,224,061 2,876,509 Home loans 146,658 212,709 Personal loans 2,941,609 2,054,850 Total loans at fair value 7,002,885 5,952,972 Loans at amortized cost (1) Credit card 139,388 115,912 Commercial and consumer banking: Commercial real estate 67,627 — Commercial and industrial 8,760 — Residential real estate and other consumer 3,341 — Total commercial and consumer banking 79,728 — Total loans at amortized cost 219,116 115,912 Total loans $ 7,222,001 $ 6,068,884 _____________________ (1) See Note 1 for additional information on our loans at amortized cost as it pertains to the allowance for credit losses pursuant to ASC 326. Loans Measured at Fair Value The following table summarizes the aggregate fair value of our loans measured at fair value on a recurring basis as of the dates indicated: Student Loans Home Loans Personal Loans Total March 31, 2022 Unpaid principal (1) $ 3,683,512 $ 153,222 $ 3,006,363 $ 6,843,097 Accumulated interest 9,740 182 17,893 27,815 Cumulative fair value adjustments (1) 44,187 (6,746) 94,532 131,973 Total fair value of loans $ 3,737,439 $ 146,658 $ 3,118,788 $ 7,002,885 December 31, 2021 Unpaid principal (1) $ 3,356,344 $ 210,111 $ 2,188,773 $ 5,755,228 Accumulated interest 9,990 190 12,310 22,490 Cumulative fair value adjustments (1) 84,503 2,408 88,343 175,254 Total fair value of loans $ 3,450,837 $ 212,709 $ 2,289,426 $ 5,952,972 __________________ (1) These items are impacted by charge-offs during the period. The following table summarizes the aggregate fair value of loans 90 days or more delinquent as of the dates indicated. 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. There were no home loans that were 90 days or more delinquent as of the dates presented. Student Loans Personal Loans Total March 31, 2022 Unpaid principal $ 1,959 $ 4,163 $ 6,122 Accumulated interest 26 156 182 Cumulative fair value adjustments (1,160) (3,658) (4,818) Fair value of loans 90 days or more delinquent $ 825 $ 661 $ 1,486 December 31, 2021 Unpaid principal $ 1,589 $ 4,765 $ 6,354 Accumulated interest 32 149 181 Cumulative fair value adjustments (865) (4,189) (5,054) Fair value of loans 90 days or more delinquent $ 756 $ 725 $ 1,481 The following table presents the changes in our loans measured at fair value on a recurring basis: Student Loans Home Loans Personal Loans Total Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 3,450,837 $ 212,709 $ 2,289,426 $ 5,952,972 Origination of loans 983,804 312,383 2,026,004 3,322,191 Principal payments (227,115) (4,400) (372,454) (603,969) Sales of loans (544,150) (365,370) (977,920) (1,887,440) Purchases (1) 116,433 498 160,748 277,679 Change in accumulated interest (250) (8) 5,583 5,325 Change in fair value (2) (42,120) (9,154) (12,599) (63,873) Fair value as of March 31, 2022 $ 3,737,439 $ 146,658 $ 3,118,788 $ 7,002,885 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 2,866,459 $ 179,689 $ 1,812,920 $ 4,859,068 Origination of loans 1,004,685 735,604 805,689 2,545,978 Principal payments (250,219) (1,479) (258,199) (509,897) Sales of loans (936,160) (677,566) (779,441) (2,393,167) Purchases (1) 71 119 1,001 1,191 Change in accumulated interest (1,249) (35) (2,187) (3,471) Change in fair value (2) (16,794) (4,429) (5,875) (27,098) Fair value as of March 31, 2021 $ 2,666,793 $ 231,903 $ 1,573,908 $ 4,472,604 __________________ (1) Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three months ended March 31, 2022 included securitization clean-up calls (purchases we elect to make when the risk retention period has sunset) of $275,499. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. (2) Changes in fair value of loans are recorded in the unaudited condensed consolidated statements of operations and comprehensive income (loss) within noninterest income—loan origination and sales for loans held on the balance sheet prior to transfer to a third party through a sale or to a VIE and within noninterest income—securitizations for loans in a consolidated VIE. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains included in earnings attributable to changes in instrument-specific credit risk were $6,496 and $6,926 during the three months ended March 31, 2022 and 2021, respectively. The gains attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument. Loans Measured at Amortized Cost Loan Portfolio Composition and Aging 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 as of the dates indicated: Delinquent Loans Current 30–59 Days 60–89 Days ≥ 90 Days (1) Total Delinquent Loans Total Loans (2) March 31, 2022 Credit card $ 143,161 $ 3,330 $ 2,625 $ 4,714 $ 10,669 $ 153,830 Commercial and consumer banking: Commercial real estate 68,385 — — — — 68,385 Commercial and industrial 8,946 129 — — 129 9,075 Residential real estate and other consumer (3) 3,343 — — — — 3,343 Total commercial and consumer banking 80,674 129 — — 129 80,803 Total loans $ 223,835 $ 3,459 $ 2,625 $ 4,714 $ 10,798 $ 234,633 December 31, 2021 Credit card $ 115,356 $ 1,893 $ 1,683 $ 2,658 $ 6,234 $ 121,590 _______________ (1) All of the credit card loans ≥ 90 days past due continued to accrue interest. As of March 31, 2022 and December 31, 2021, there were no credit card loans on nonaccrual status. As of March 31, 2022, commercial and consumer banking loans on nonaccrual status were immaterial, and there were no loans that were 90 days or more past due. (2) For credit card, the balance is presented before allowance for credit losses of $16,500 and $7,037 as of March 31, 2022 and December 31, 2021, respectively, and accrued interest of $2,058 and $1,359, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,366 and accrued interest of $289 as of March 31, 2022. (3) Includes residential real estate loans acquired in the Bank Merger, for which we did not elect the fair value option for this portfolio of loans. Credit Quality Indicators Credit Card The following table presents the amortized cost basis of our credit card portfolio (excluding accrued interest and before the allowance for credit losses) as of the dates indicated based on FICO scores, which are obtained at the origination of the account, and are updated as new credit information is available. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data. FICO March 31, 2022 December 31, 2021 ≥ 800 $ 7,532 $ 10,016 780 – 799 6,429 8,624 760 – 779 7,968 9,976 740 – 759 9,744 13,581 720 – 739 13,487 18,358 700 – 719 18,763 22,579 680 – 699 22,127 21,736 660 – 679 21,369 14,044 640 – 659 16,352 1,969 < 640 30,059 707 Total credit card $ 153,830 $ 121,590 Commercial and Consumer Banking We evaluate the credit quality of our commercial and consumer banking loan portfolio on a quarterly basis based on regulatory risk ratings. Loans are categorized into risk ratings based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. We analyze loans individually by classification based on their associated credit risk, and perform an analysis on an ongoing basis as new information is obtained. Risk rating classifications are further described below. Loans with a lower expectation of credit losses are classified as Pass, while loans with a higher expectation of credit losses are classified as Substandard. • Pass — Loans that management believes will fully repay in accordance with the contractual loan terms. • Watch — Loans that management believes will fully repay in accordance with the contractual loan terms, but for which certain credit attributes have changed from origination and warrant further monitoring. • Special mention — Loans with a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or our credit position at some future date. • Substandard — Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the full repayment. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. 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 as of March 31, 2022. Term Loans by Origination Year 2022 2021 2020 2019 2018 Prior Total Term Loans Revolving Loans Commercial real estate Pass $ 2,856 $ 5,827 $ 8,153 $ 12,437 $ 6,994 $ 17,638 $ 53,905 $ 208 Watch — 1,708 — 2,807 1,143 4,082 9,740 — Special mention — — — 689 2,269 416 3,374 — Substandard — — — — 81 1,077 1,158 — Total commercial real estate $ 2,856 $ 7,535 $ 8,153 $ 15,933 $ 10,487 $ 23,213 $ 68,177 $ 208 Commercial and industrial Pass $ — $ 259 $ 120 $ — $ 115 $ 5,313 $ 5,807 $ 399 Watch — — — — — 296 296 30 Special mention — — — — — 763 763 — Substandard — — — — 553 1,102 1,655 125 Total commercial and industrial $ — $ 259 $ 120 $ — $ 668 $ 7,474 $ 8,521 $ 554 Residential real estate and other consumer Pass $ — $ — $ — $ — $ — $ 3,234 $ 3,234 $ 65 Watch — — — — — 44 44 — Total residential real estate and other consumer $ — $ — $ — $ — $ — $ 3,278 $ 3,278 $ 65 Total commercial and consumer banking $ 2,856 $ 7,794 $ 8,273 $ 15,933 $ 11,155 $ 33,965 $ 79,976 $ 827 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities Consolidated VIE s The Company consolidates certain securitization trusts in which we have a variable interest and are deemed to be the primary beneficiary. The VIEs are SPEs with portfolio loans securing debt obligations. The SPEs were created and designed to transfer credit and interest rate risk associated with consumer loans through the issuance of collateralized notes and trust certificates. The Company makes standard representations and warranties to repurchase or replace qualified portfolio loans. Aside from these representations, the holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying portfolio loans securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. We hold a significant interest in these financing transactions through our ownership of a portion of the residual interest in certain VIEs. In addition, in some cases, we invest in the debt obligations issued by the VIE. Our investments in consolidated VIEs eliminate in consolidation. The residual interest is the first VIE interest to absorb losses should the loans securing the debt obligations not provide adequate cash flows to satisfy more senior claims and is, by design, the interest that we expect to absorb the expected gains and losses of the VIE. The Company’s exposure to credit risk in sponsoring SPEs is limited to our investment in the VIE. VIE creditors have no recourse against our general credit. As of March 31, 2022 and December 31, 2021, we had 12 and 13 consolidated VIEs, respectively, on our unaudited condensed consolidated balance sheets. The following table presents the assets and liabilities of consolidated VIEs that were included in our unaudited condensed consolidated balance sheets. The assets in the below table may only be used to settle obligations of consolidated VIEs and were in excess of those obligations as of the dates presented. Additionally, the assets and liabilities in the table below exclude intercompany balances, which eliminate upon consolidation. March 31, December 31, 2022 2021 Assets: Restricted cash and restricted cash equivalents $ 40,906 $ 53,161 Loans 690,557 808,904 Total assets $ 731,463 $ 862,065 Liabilities: Accounts payable, accruals and other liabilities $ 344 $ 388 Debt (1) 576,897 660,419 Residual interests classified as debt 70,532 93,682 Total liabilities $ 647,773 $ 754,489 ___________________ (1) Debt is presented net of debt issuance costs and debt premiums (discounts). Nonconsolidated VIEs We have created and designed personal loan and student loan trusts to transfer associated credit and interest rate risk associated with the loans through the issuance of collateralized notes and residual certificates. We have a variable interest in the nonconsolidated loan trusts, as we own collateralized notes and residual certificates in the loan trusts that absorb variability. We also have continuing, non-controlling involvement with the trusts as the servicer. As servicer, we have the power to perform the activities which most impact the economic performance of the VIE, but since we hold an insignificant financial interest in the trusts, we are not the primary beneficiary. We define an insignificant financial interest as less than 10% of the expected gains and losses of the VIE. This financial interest represents the equity ownership interest in the loan trusts, wherein there is an obligation to absorb losses and the right to receive benefits from residual certificate ownership. The maximum exposure to loss as a result of our involvement with the nonconsolidated VIEs is limited to our investment. There are no liquidity arrangements, guarantees or other commitments by third parties that may affect the fair value or risk of our variable interests in nonconsolidated VIEs. Personal Loans As of March 31, 2022 and December 31, 2021, we had investments in nine and nine nonconsolidated personal loan VIEs, respectively. We did not establish any personal loan trusts during the three months ended March 31, 2022 and 2021. We did not provide financial support to any personal loan trusts beyond our initial equity investment and we did not deconsolidate any personal loan VIEs during the three months ended March 31, 2022 and 2021. Student Loans As of March 31, 2022 and December 31, 2021, we had investments in 24 and 24 nonconsolidated student loan VIEs, respectively. We did not establish any student loan trusts during the three months ended March 31, 2022 and established two student loan trusts during the three months ended March 31, 2021, which were not consolidated as of the balance sheet date. We did not provide financial support to any student loan trusts beyond our initial equity investment during the periods presented. We deconsolidated one student loan VIE during the three months ended March 31, 2022. We did not deconsolidate any student loan VIEs during the three months ended March 31, 2021. The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs as of the dates indicated. March 31, December 31, 2022 2021 Personal loans $ 52,230 $ 62,925 Student loans 273,140 311,763 Securitization investments $ 325,370 $ 374,688 |
Transfers of Financial Assets
Transfers of Financial Assets | 3 Months Ended |
Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Transfers of Financial Assets | Transfers of Financial Assets We regularly transfer financial assets and account for such transfers as either sales or secured borrowings depending on the facts and circumstances. When a transfer of financial assets qualifies as a sale, in many instances we have continued involvement as the servicer of those financial assets. As we expect the benefits of servicing to be more than just adequate, we recognize a servicing asset. Further, in the case of securitization-related transfers that qualify as sales, we have additional continued involvement as an investor, albeit at insignificant levels relative to the expected gains and losses of the securitization. In instances where a transfer is accounted for as a secured borrowing, we perform servicing (but we do not recognize a servicing asset) and typically maintain a significant investment relative to the expected gains and losses of the securitization. In whole loan sales, we do not have a residual financial interest in the loans, nor do we have any other power over the loans that would constrain us from recognizing a sale. Additionally, we have no repurchase requirements related to transfers of personal loans, student loans and non-Federal National Mortgage Association (“FNMA”) home loans other than standard origination representations and warranties, for which we record a liability based on expected repurchase obligations. For FNMA home loans, we have customary FNMA repurchase requirements, which do not constrain sale treatment but result in a liability for the expected repurchase requirement. The following table summarizes our student loan securitization transfers qualifying for sale accounting treatment for the three months ended March 31, 2021. There were no loan securitization transfers qualifying for sale accounting treatment during the three months ended March 31, 2022. Three Months Ended March 31, 2021 Student loans Fair value of consideration received: Cash $ 500,041 Securitization investments 26,381 Servicing assets recognized 28,731 Total consideration 555,153 Aggregate unpaid principal balance and accrued interest of loans sold 526,126 Gain from loan sales $ 29,027 The following table summarizes our whole loan sales during the periods indicated: Three Months Ended March 31, 2022 2021 Student loans Fair value of consideration received: Cash $ 548,911 $ 422,341 Servicing assets recognized 5,824 4,858 Repurchase liabilities recognized (80) (79) Total consideration 554,655 427,120 Aggregate unpaid principal balance and accrued interest of loans sold 546,287 413,090 Gain from loan sales $ 8,368 $ 14,030 Home loans Fair value of consideration received: Cash $ 359,700 $ 696,197 Servicing assets recognized 4,238 6,539 Repurchase liabilities recognized (420) (939) Total consideration 363,518 701,797 Aggregate unpaid principal balance and accrued interest of loans sold 365,560 677,569 Gain (loss) from loan sales $ (2,042) $ 24,228 Personal loans Fair value of consideration received: Cash $ 1,018,689 $ 811,252 Servicing assets recognized 6,424 6,003 Repurchase liabilities recognized (2,298) (2,084) Total consideration received 1,022,815 815,171 Aggregate unpaid principal balance and accrued interest of loans sold 981,855 782,529 Gain from loan sales $ 40,960 $ 32,642 The following table presents information as of the dates indicated about the unpaid principal balances of transferred loans that are not recorded in our unaudited condensed consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements: Student Loans Home Loans Personal Loans Total March 31, 2022 Loans in repayment $ 9,302,518 $ 4,805,945 $ 5,075,573 $ 19,184,036 Loans in-school/grace/deferment 31,450 — — 31,450 Loans in forbearance 45,096 13,554 753 59,403 Loans in delinquency 93,259 9,445 79,590 182,294 Total loans serviced $ 9,472,323 $ 4,828,944 $ 5,155,916 $ 19,457,183 December 31, 2021 Loans in repayment $ 9,852,957 $ 4,575,001 $ 5,138,299 $ 19,566,257 Loans in-school/grace/deferment 37,949 — — 37,949 Loans in forbearance 44,833 40,353 1,120 86,306 Loans in delinquency 112,885 7,465 75,275 195,625 Total loans serviced $ 10,048,624 $ 4,622,819 $ 5,214,694 $ 19,886,137 The following table presents additional information during the periods indicated about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement: Three Months Ended March 31, 2022 2021 Student loans Servicing fees collected $ 9,168 $ 9,025 Charge-offs, net of recoveries (1) 8,220 3,053 Home Loans Servicing fees collected $ 2,636 $ 1,613 Charge-offs, net of recoveries — — Personal Loans Servicing fees collected $ 8,637 $ 9,490 Charge-offs, net of recoveries (1) 17,138 37,817 Total Servicing fees collected $ 20,441 $ 20,128 Charge-offs, net of recoveries 25,358 40,870 _____________________ (1) Student loan and personal 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. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit LossesWe measure our allowance for credit losses on accounts receivable under ASC 326, which primarily relates to our Technology Platform segment, and on loans measured at amortized cost, including credit card as well as commercial and consumer banking loans acquired in the Bank Merger. Given our methods of collecting funds on servicing receivables, our historical experience of infrequent write offs, and that we have not observed meaningful changes in our counterparties’ abilities to pay, we determined that the future exposure to credit losses on servicing related receivables was immaterial. The following table summarizes the activity in the balances of allowance for credit losses during the periods indicated. Accounts Receivable (1) Credit Card (1) Commercial and Consumer Banking (1) Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 2,292 $ 7,037 $ — Provision for credit losses (2) (591) 11,977 984 Allowance for PCD loans (3) — — 382 Write-offs charged against the allowance (4) (49) (2,514) — Balance at March 31, 2022 $ 1,652 $ 16,500 $ 1,366 Three Months Ended March 31, 2021 Balance at December 31, 2020 $ 562 $ 219 $ — Provision for credit losses (2) 1,135 — — Write-offs charged against the allowance (778) (48) — Balance at March 31, 2021 $ 919 $ 171 $ — _____________________ (1) Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the unaudited condensed consolidated balance sheets. Credit card and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans in the unaudited condensed consolidated balance sheets. (2) The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2022 and 2021, recoveries of amounts previously reserved related to accounts receivable were $1,392 and $547, respectively. The provision for credit losses on credit card and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses. There were no recoveries of credit card losses during the three months ended March 31, 2022 and 2021 and immaterial recoveries on the commercial and consumer banking portfolio through March 31, 2022. (3) We measured a PCD allowance for the loans acquired in the Bank Merger upon acquisition, which resulted in a gross-up to the allowance for credit losses, but had no impact on earnings. (4) The increase in credit card write-offs charged against the allowance during the three months ended March 31, 2022 was commensurate with our increased loan portfolio combined with increased loss rates. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables summarize, by level within the fair value hierarchy, the carrying amounts and estimated fair values of our assets and liabilities (i) measured at fair value on a recurring basis, (ii) measured at fair value on a nonrecurring basis, or (iii) disclosed but not carried at fair value in the unaudited condensed consolidated balance sheets as of the dates presented. March 31, 2022 Fair Value Carrying Value Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 1,325,135 $ 1,325,135 $ — $ — $ 1,325,135 Restricted cash and restricted cash equivalents (1) 377,077 377,077 — — 377,077 Investments in AFS debt securities (2)(4) 199,840 136,363 63,477 — 199,840 Loans at fair value (2) 7,002,885 — — 7,002,885 7,002,885 Loans at amortized cost (1) 219,116 — — 227,917 227,917 Servicing rights (2) 173,505 — — 173,505 173,505 Asset-backed bonds (2)(5) 218,693 — 218,693 — 218,693 Residual investments (2)(5) 106,677 — — 106,677 106,677 Non-securitization investments – ETFs (2)(6) 1,419 1,419 — — 1,419 Non-securitization investments – other (3) 25,176 — — 25,176 25,176 Third party warrants (2)(7) 1,227 — — 1,227 1,227 Derivative assets (2)(8)(9) 9,684 9,684 — — 9,684 Purchase price earn-out (2)(10) 2,285 — — 2,285 2,285 Student loan commitments (2)(11) 23 — — 23 23 Interest rate caps (2)(9) 3,116 — 3,116 — 3,116 Total assets $ 9,665,858 $ 1,849,678 $ 285,286 $ 7,539,695 $ 9,674,659 Liabilities Deposits (1) $ 14,187 $ — $ 14,145 $ — $ 14,145 Debt (1) 4,916,175 968,280 3,759,066 — 4,727,346 Residual interests classified as debt (2) 70,532 — — 70,532 70,532 Derivative liabilities (2)(8)(9) 10,927 150 10,777 — 10,927 Interest rate lock commitments (2)(11) 3,039 — — 3,039 3,039 Total liabilities $ 5,014,860 $ 968,430 $ 3,783,988 $ 73,571 $ 4,825,989 December 31, 2021 Fair Value Carrying Value Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 494,711 $ 494,711 $ — $ — $ 494,711 Restricted cash and restricted cash equivalents (1) 273,726 273,726 — — 273,726 Investments in AFS debt securities (2)(4) 194,907 129,835 65,072 — 194,907 Loans at fair value (2) 5,952,972 — — 5,952,972 5,952,972 Loans at amortized cost (1) 115,912 — — 118,412 118,412 Servicing rights (2) 168,259 — — 168,259 168,259 Asset-backed bonds (2)(5) 253,669 — 253,669 — 253,669 Residual investments (2)(5) 121,019 — — 121,019 121,019 Non-securitization investments – ETFs (2)(6) 1,486 1,486 — — 1,486 Non-securitization investments – other (3) 6,054 — — 6,054 6,054 Third party warrants (2)(7) 1,369 — — 1,369 1,369 Derivative assets (2)(8)(9) 5,444 — 5,444 — 5,444 Purchase price earn-out (2)(10) 4,272 — — 4,272 4,272 Interest rate lock commitments (2)(11) 3,759 — — 3,759 3,759 Student loan commitments (2)(11) 2,220 — — 2,220 2,220 Interest rate caps (2)(9) 493 — 493 — 493 Total assets $ 7,600,272 $ 899,758 $ 324,678 $ 6,378,336 $ 7,602,772 Liabilities Debt (1) $ 3,947,983 $ 1,240,560 $ 2,807,253 $ — $ 4,047,813 Residual interests classified as debt (2) 93,682 — — 93,682 93,682 Derivative liabilities (2)(8)(9) 864 196 668 — 864 Total liabilities $ 4,042,529 $ 1,240,756 $ 2,807,921 $ 93,682 $ 4,142,359 _____________________ (1) Disclosed but not carried at fair value. The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes issued in October 2021 was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt, revolving credit facility debt and credit card loans were based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. The fair value of our commercial and consumer banking loans was determined using a discounted cash flow model with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults. The carrying amounts of our cash and cash equivalents and restricted cash and restricted cash equivalents approximate their fair values due to the short-term maturities and highly liquid nature of these accounts. The fair value of our time-based deposits is estimated by a discounted cash flow method using rates currently offered for deposits of similar remaining maturities. (2) Measured at fair value on a recurring basis. (3) Measured at fair value on a nonrecurring basis. (4) Investments in AFS debt securities as of March 31, 2022 were classified as Level 1 or Level 2. The Level 1 investments utilize quoted prices in actively traded markets. The Level 2 investments rely upon observable inputs other than quoted prices, dealer quotes in markets that are not active and implied pricing derived from new issuances of similar securities. See Note 3 for additional information. (5) These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. As we do not provide financial support beyond our initial equity investment, our maximum exposure to loss as a result of our involvement with nonconsolidated VIEs is limited to the investment amount. See Note 5 for additional information. (6) ETFs classified as Level 1 are based on utilizing quoted prices in actively traded markets. (7) The key unobservable assumption used in the fair value measurement of the third party warrants is the price of the stock underlying the warrants. The fair value is measured as the difference between the stock price and the strike price of the warrants. As the strike price is insignificant, we concluded that the impact of time value on the fair value measure was immaterial. (8) For certain derivative instruments for which an enforceable master netting agreement exists, we elected to net derivative assets and derivative liabilities by counterparty. These instruments are presented on a gross basis herein. See Note 1 for additional information. (9) Derivative liabilities classified as Level 1 are based on broker quotes in active markets and represent economic hedges of either loans or securitization investment fair values. Interest rate swaps and interest rate caps are classified as Level 2, because these financial instruments do not trade in active markets with observable prices, but rely on observable inputs other than quoted prices. Interest rate swaps are valued using the three-month LIBOR swap yield curve and interest rate caps are valued using a Secured Overnight Financing Rate (“SOFR”) curve and the implied volatilities suggested by the SOFR rate curve, which are all observable inputs from active markets. (10) The purchase price earn-out provision is classified as Level 3 because of our reliance on an unobservable inputs, such as conditional prepayment rates, annual default rates and discount rates. (11) IRLCs and student loan commitments are classified as Level 3 because of our reliance on assumed loan funding probabilities. The assumed probabilities are based on our internal historical experience with home loans and student loans similar to those in the funding pipelines on the measurement date. Loans The following key unobservable assumptions were used in the fair value measurement of our loans as of the dates indicated: March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average Student loans Conditional prepayment rate 16.8% – 26.1% 19.6% 16.5% – 26.3% 19.2% Annual default rate 0.2% – 3.1% 0.4% 0.2% – 4.2% 0.4% Discount rate 3.2% – 7.8% 3.5% 1.9% – 7.1% 2.9% Home loans Conditional prepayment rate 3.9% – 8.2% 7.4% 4.8% – 16.4% 12.4% Annual default rate 0.1% – 0.3% 0.1% 0.1% – 0.2% 0.1% Discount rate 3.8% – 13.0% 3.8% 2.5% – 13.0% 2.6% Personal loans Conditional prepayment rate 16.1% – 42.8% 20.1% 18.4% – 37.7% 20.5% Annual default rate 4.2% – 35.6% 4.4% 4.2% – 30.0% 4.4% Discount rate 5.0% – 7.6% 5.2% 3.9% – 7.0% 4.0% The key assumptions included in the above table are defined as follows: • Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Annual default rate — The annualized rate of borrowers who do not make loan payments on time. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the loans. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. See Note 4 for additional loan fair value disclosures. Servicing Rights Servicing rights for student loans and personal loans do not trade in an active market with readily observable prices. Similarly, home loan servicing rights infrequently trade in an active market. At the time of the underlying loan sale or the assumption of servicing rights, the fair value of servicing rights is determined using a discounted cash flow methodology based on observable and unobservable inputs. Management classifies servicing rights as Level 3 due to the use of significant unobservable inputs in the fair value measurement. The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights as of the dates presented: March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 15.2% – 24.8% 19.9% 15.2% – 25.6% 20.4% Annual default rate 0.2% – 4.3% 0.4% 0.2% – 4.3% 0.4% Discount rate 7.3% – 7.3% 7.3% 7.3% – 7.3% 7.3% Home loans Market servicing costs 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Conditional prepayment rate 5.7% – 12.8% 6.1% 10.0% – 16.4% 11.5% Annual default rate 0.1% – 0.1% 0.1% 0.1% – 0.2% 0.1% Discount rate 7.5% – 7.5% 7.5% 7.5% – 7.5% 7.5% Personal loans Market servicing costs 0.2% – 1.3% 0.2% 0.2% – 1.1% 0.2% Conditional prepayment rate 22.6% – 44.6% 25.7% 22.5% – 41.4% 26.0% Annual default rate 3.3% – 7.0% 4.4% 3.2% – 7.0% 4.4% Discount rate 7.3% – 7.3% 7.3% 7.3% – 7.3% 7.3% The key assumptions included in the above table are defined as follows: • Market servicing costs — The fee a willing market participant, which we validate through actual third-party bids for our servicing, would require for the servicing of student loans, home loans and personal loans with similar characteristics as those in our serviced portfolio. An increase in the market servicing cost, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Annual default rate — The annualized rate of default within the total serviced loan balance. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the servicing rights. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. The following table presents the estimated decrease to the fair value of our servicing rights as of the dates indicated if the key assumptions had each of the below adverse changes: March 31, 2022 December 31, 2021 Market servicing costs 2.5 basis points increase $ (10,651) $ (10,822) 5.0 basis points increase (21,303) (21,644) Conditional prepayment rate 10% increase $ (5,675) $ (6,260) 20% increase (11,200) (12,031) Annual default rate 10% increase $ (206) $ (205) 20% increase (410) (408) Discount rate 100 basis points increase $ (4,698) $ (3,782) 200 basis points increase (9,084) (7,349) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the effect of an adverse variation in a particular assumption on the fair value of our servicing rights is calculated while holding the other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. The following table presents the changes in the Company’s servicing rights, which are measured at fair value on a recurring basis. Student Loans Home Loans Personal Loans Total Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 90,003 $ 50,533 $ 27,723 $ 168,259 Recognition of servicing from transfers of financial assets 5,824 4,238 6,424 16,486 Servicing rights assumed from third parties — — 629 629 Derecognition of servicing via loan purchases (1,041) — (369) (1,410) Change in valuation inputs or other assumptions 1,292 7,740 2,548 11,580 Realization of expected cash flows and other changes (10,121) (2,926) (8,992) (22,039) Fair value as of March 31, 2022 $ 85,957 $ 59,585 $ 27,963 $ 173,505 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 100,637 $ 23,914 $ 25,046 $ 149,597 Recognition of servicing from transfers of financial assets 33,589 6,539 6,003 46,131 Change in valuation inputs or other assumptions (15,728) 3,329 290 (12,109) Realization of expected cash flows and other changes (12,160) (1,744) (8,475) (22,379) Fair value as of March 31, 2021 $ 106,338 $ 32,038 $ 22,864 $ 161,240 Asset-Backed Bonds The fair value of asset-backed bonds is determined using a discounted cash flow methodology. Management classifies asset-backed bonds as Level 2 due to the use of quoted prices for similar assets in markets that are not active, as well as certain factors specific to us. The following key inputs were used in the fair value measurement of our asset-backed bonds as of the dates indicated: March 31, 2022 December 31, 2021 Discount rate (range) 1.5% – 4.1% 0.6% – 3.7% Conditional prepayment rate (range) 18.4% – 33.0% 19.5% – 32.2% As of the dates indicated, the fair value of our asset-backed bonds was not materially impacted by default assumptions on the underlying securitization loans, as the subordinate residual interests, by design, are expected to absorb all estimated losses based on our default assumptions for the respective periods. Residual Investments and Residual Interests Classified as Debt Residual investments and residual interests classified as debt do not trade in active markets with readily observable prices, and there is limited observable market data for reference. The fair values of residual investments and residual interests classified as debt are determined using a discounted cash flow methodology. Management classifies residual investments and residual interests classified as debt as Level 3 due to the use of significant unobservable inputs in the fair value measurements. The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt as of the dates indicated: March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 18.4% – 33.7% 22.7% 19.5% – 33.6% 23.0% Annual default rate 0.3% – 5.6% 0.9% 0.3% – 5.7% 0.9% Discount rate 3.1% – 10.5% 4.8% 2.6% – 10.5% 4.4% Residual interests classified as debt Conditional prepayment rate 19.3% – 44.2% 30.7% 20.0% – 41.8% 31.5% Annual default rate 0.5% – 5.4% 2.8% 0.5% – 5.6% 3.2% Discount rate 5.5% – 9.5% 6.2% 5.0% – 9.5% 5.7% The key assumptions included in the above table are defined as follows: • Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period for the pool of loans in the securitization. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Annual default rate — The annualized rate of borrowers who fail to remain current on their loans for the pool of loans in the securitization. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. • Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the residual investments and residual interests classified as debt. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value. The following table presents the changes in the residual investments and residual interests classified as debt, which are both measured at fair value on a recurring basis. We record changes in fair value within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively. Residual Investments Residual Interests Classified as Debt Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 121,019 $ 93,682 Change in valuation inputs or other assumptions (1) 762 2,963 Payments (15,104) (26,113) Fair value as of March 31, 2022 $ 106,677 $ 70,532 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 139,524 $ 118,298 Additions 26,381 — Change in valuation inputs or other assumptions (1) 3,497 7,951 Payments (18,441) (11,367) Fair value as of March 31, 2021 $ 150,961 $ 114,882 ___________________ (1) For residual investments, the estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. Loan Commitments We classify student loan commitments as Level 3 because the assets do not trade in an active market with readily observable prices and, as such, our valuations utilize significant unobservable inputs. Additionally, we classify IRLCs as Level 3, as our IRLCs are inherently uncertain and unobservable given that a home loan origination is contingent on a plethora of factors. The following key unobservable inputs were used in the fair value measurements of our IRLCs and student loan commitments as of the dates indicated: March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 48.0% – 59.0% 58.6% 75.0% – 75.0% 75.0% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% – 95.0% 95.0% ___________________ (1) The probability of honoring IRLCs and student loan commitments, which reflects the percentage likelihood that an approved loan application will close based on historical experience. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. The aggregate amount of student loans we committed to fund was $4,888 as of March 31, 2022. See Note 1 under “Derivative Financial Instruments” for the aggregate notional amount associated with IRLCs. The key assumption included in the above table is defined as follows: • Loan funding probability — Our expectation of the percentage of IRLCs or student loan commitments which will become funded loans. An increase in the loan funding probabilities, in isolation, would result in an increase in a fair value measurement. The weighted average assumptions were weighted based on relative fair values. The following table presents the changes in our IRLCs and student loan commitments, which are measured at fair value on a recurring basis. Changes in the fair values of IRLCs and student loan commitments are recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). IRLCs Student Loan Commitments Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 3,759 $ 2,220 Revaluation adjustments (3,039) 23 Funded loans (1) (2,201) (2,121) Unfunded loans (1) (1,558) (99) Fair value as of March 31, 2022 $ (3,039) $ 23 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 15,620 $ — Revaluation adjustments 7,118 — Funded loans (1) (10,210) — Unfunded loans (1) (5,410) — Fair value as of March 31, 2021 $ 7,118 $ — ___________________ (1) For each quarter presented, funded and unfunded loan fair value adjustments represent the unpaid principal balance of funded and unfunded loans, respectively, during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. Non-Securitization Investments Non-securitization investments — ETFs of $1,419 and $1,486 as of March 31, 2022 and December 31, 2021, respectively, include investments in exchange-traded funds (“ETF”), which have targeted investment strategies. Our investments as of March 31, 2022 and December 31, 2021 included an ETF with investment grade and high-yield fixed income securities. Non-securitization investments — ETFs are measured at fair value on a recurring basis using the net asset value expedient in accordance with ASC 820 and are presented within other assets in the unaudited condensed consolidated balance sheets. Non-securitization investments — Other of $25,176 and $6,054 as of March 31, 2022 and December 31, 2021, respectively, include investments for which fair values are not readily determinable, which we elect to measure using the measurement alternative method of accounting. Under the measurement alternative method, we measure the investments at cost, less any impairment and adjusted for changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuers. The carrying values of the investments are presented within other assets in the unaudited condensed consolidated balance sheets. Adjustments to the carrying value, such as impairments and unrealized gains, are recognized within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). The fair value measurements are classified within Level 3 of the fair value hierarchy due to the uses of unobservable inputs in the fair value measurements. In the first quarter of 2022, we measured a former equity method investment under the measurement alternative method, which primarily drove the increase in the balance from year end. There were no observed changes in the fair value through March 31, 2022. For an investment with a fair value of $2,168 as of March 31, 2022 and December 31, 2021, respectively, we recognized a gain of $3,967 during the second quarter of 2021, which reflected a value based on the investee’s latest round of financing in an orderly transaction in an issuance similar to our investment holding. In the same quarter, we sold a portion of our investment for $2,000 at the same valuation. We also had another investment with a fair value of $2,000 as of March 31, 2022 and December 31, 2021, respectively. We did not make any adjustments to the investment value through March 31, 2022. Purchase Price Earn-Out We recognize a derivative asset for a purchase price earn-out in conjunction with a loan sale agreement we entered into during 2018. We receive a capped contractual payout based on the respective loan pool internal rate of return over a certain hurdle rate, which is adjusted for the loan purchaser’s expenses, which are generally immaterial. The fair value of the purchase price earn-out is determined using a discounted cash flow methodology. Management classifies the purchase price earn-out as Level 3 due to the use of significant unobservable inputs in the fair value measurement. A significant difference between the expected performance of the loans included in the loan sale agreement and the actual results as of the measurement date could result in a higher or lower fair value measurement. Our key valuation inputs were as follows as of the dates indicated. Purchase Price Earn-Out March 31, 2022 December 31, 2021 Conditional prepayment rate 22.7% 22.9% Annual default rate 35.6% 30.0% Discount rate 25.0% 25.0% The key assumptions included in the above table are defined as follows: • Conditional prepayment rate — The monthly annualized proportion of the principal of the pool of loans included in the loan sale agreement that is assumed to be paid off prematurely. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. • Annual default rate — The annualized rate of borrowers who fail to remain current on their loans for the pool of loans included in the loan sale agreement. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. • Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the purchase price earn-out derivative. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The following table presents the changes in our purchase price earn-out, which is measured at fair value on a recurring basis. Changes in the fair value are recorded within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Changes during the three months ended March 31, 2021 were immaterial. Purchase Price Earn-Out Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 4,272 Payments (2,817) Changes in valuation inputs or assumptions (1) 830 Fair value as of March 31, 2022 $ 2,285 ___________________ (1) The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the three months ended March 31, 2022. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the purchase price earn-out. These assumptions are based on historical performance and performance expectations over the term of the underlying instrument. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the Company’s principal outstanding debt, debt discounts/premiums and debt issuance costs as of the dates indicated: Borrowing Description Collateral Balances (1) Interest Rate (2) Termination/ Maturity (3) Total Capacity (4) Outstanding as of March 31, 2022 (5) December 31, Student Loan Warehouse Facilities SoFi Funding I $ 66,038 SOFR + 100 bps April 2023 $ 200,000 $ 62,499 $ — SoFi Funding III (6) 9,720 PR – 134 bps September 2024 75,000 8,673 3,930 SoFi Funding V (7) — 1ML + 135 bps May 2023 350,000 — — SoFi Funding VI 161,378 3ML + 125 bps March 2024 600,000 153,396 56,709 SoFi Funding VII — SOFR + 85 bps September 2024 500,000 — 284,475 SoFi Funding VIII 291,106 1ML + 90 bps May 2022 300,000 266,281 245,723 SoFi Funding IX (8) 362,672 SOFR+ 210 bps and CP + 87.5 bps May 2025 500,000 339,467 9,816 SoFi Funding X (9) 342,018 CP + 95 bps April 2025 500,000 306,705 29,647 SoFi Funding XI (10) 467,093 CP + 100 bps November 2024 500,000 424,041 — SoFi Funding XII (11) — CP + 115 bps November 2024 200,000 — 20,267 SoFi Funding XIII 461,666 SOFR + 55 bps April 2024 450,000 408,384 424,348 Total, before unamortized debt issuance costs $ 2,161,691 $ 4,175,000 $ 1,969,446 $ 1,074,915 Unamortized debt issuance costs $ (7,706) $ (7,540) Personal Loan Warehouse Facilities SoFi Funding PL I (12) $ 146,768 CP + 137.5 bps September 2023 $ 250,000 $ 123,036 $ 11,911 SoFi Funding PL II — 3ML + 225 bps July 2023 400,000 — — SoFi Funding PL III — 1ML + 175 bps May 2023 250,000 — — SoFi Funding PL IV (13) — CP + 170 bps November 2023 500,000 — — SoFi Funding PL VI (14) — CP + 170 bps September 2024 50,000 — — SoFi Funding PL VII 97,052 1ML + 115 bps June 2022 250,000 81,518 71,572 SoFi Funding PL X 88,974 1ML + 142.5 bps February 2023 200,000 74,267 — SoFi Funding PL XI 112,854 SOFR + 125 bps January 2023 200,000 107,071 — SoFi Funding PL XIII 123,953 SOFR + 110 bps January 2032 300,000 108,597 — SoFi Funding PL XIV — SOFR + 100 bps October 2024 300,000 — 144,662 Total, before unamortized debt issuance costs $ 569,601 $ 2,700,000 $ 494,489 $ 228,145 Unamortized debt issuance costs $ (3,551) $ (3,898) Home Loan Warehouse Facilities Mortgage Warehouse VI $ — SOFR + 200 bps October 2022 $ 1,000 $ — $ — Total, before unamortized debt issuance costs $ — $ 1,000 $ — $ — Unamortized debt issuance costs $ — $ — Credit Card Warehouse Facilities SoFi Funding CC I LLC (15) $ — CP + 175 bps March 2023 $ 100,000 $ — $ 11,810 Total, before unamortized debt issuance costs $ — $ 100,000 $ — $ 11,810 Unamortized debt issuance costs $ (214) $ (312) Risk Retention Warehouse Facilities (16) SoFi RR Funding I $ 38,380 3ML + 200 bps January 2024 $ 100,000 $ 28,148 $ 22,608 SoFi RR Repo — 3ML + 185 bps January 2022 — — 69,843 SoFi RR Funding II 97,380 1ML + 125 bps November 2024 87,333 98,031 SoFi RR Funding III 39,058 1ML + 125 bps November 2024 35,475 39,158 SoFi RR Funding IV 73,167 SOFR + 150 bps October 2027 100,000 57,814 66,555 SoFi RR Funding V 44,221 298 bps December 2025 17,431 29,453 Total, before unamortized debt issuance costs $ 292,206 $ 226,201 $ 325,648 Unamortized debt issuance costs $ (1,626) $ (2,086) Borrowing Description Collateral Balances (1) Interest Rate (2) Termination/ Maturity (3) Total Capacity (4) Outstanding as of March 31, 2022 (5) December 31, Revolving Credit Facility SoFi Corporate Revolver (17) n/a 1ML + 100 bps September 2023 $ 560,000 $ 486,000 $ 486,000 Total, before unamortized debt issuance costs $ 560,000 $ 486,000 $ 486,000 Unamortized debt issuance costs $ (536) $ (626) Other Financing Convertible senior notes n/a —% October 2026 $ 1,200,000 $ 1,200,000 Total, before unamortized debt issuance costs and discount $ 1,200,000 $ 1,200,000 Unamortized debt issuance costs $ (1,549) $ (1,634) Unamortized discount (21,676) (22,858) Other financing (18) $ 19,131 $ 19,620 $ — $ — Student Loan Securitizations SoFi PLP 2016-B LLC $ 43,122 1ML + (120–380 bps) April 2037 $ 38,608 $ 43,186 SoFi PLP 2016-C LLC 49,566 1ML + (110–335 bps) May 2037 44,549 49,685 SoFi PLP 2016-D LLC 63,585 1ML + (95–323 bps) January 2039 57,096 61,760 SoFi PLP 2016-E LLC 73,983 1ML + (85–443 bps) October 2041 67,138 74,242 SoFi PLP 2017-A LLC 92,500 1ML + (70–443 bps) March 2040 83,744 92,972 SoFi PLP 2017-B LLC 77,538 274 – 444 bps May 2040 70,405 78,811 SoFi PLP 2017-C LLC 102,963 1ML + (60–421 bps) July 2040 92,915 102,814 Total, before unamortized debt issuance costs and discount $ 503,257 $ 454,455 $ 503,470 Unamortized debt issuance costs $ (3,424) $ (3,851) Unamortized discount (981) (1,094) Personal Loan Securitizations SoFi CLP 2018-3 LLC $ 64,281 467 bps August 2027 $ 59,918 $ 76,535 SoFi CLP 2018-4 LLC 73,628 417 – 476 bps November 2027 68,297 86,835 Total, before unamortized debt issuance costs, premiums and discount $ 137,909 $ 128,215 $ 163,370 Unamortized debt issuance costs $ (1,528) $ (1,683) Unamortized premium 160 207 Total, before unamortized debt issuance costs, premiums and discounts $ 4,958,806 $ 3,993,358 Less: unamortized debt issuance costs, premiums and discounts (42,631) (45,375) Total reported debt $ 4,916,175 $ 3,947,983 _________________ (1) As of March 31, 2022, represents unpaid principal balances, with the exception of the risk retention warehouse facilities, which include securitization-related investments carried at fair value. In addition, certain securitization interests that eliminate in consolidation are pledged to risk retention warehouse facilities. Collateral balances relative to debt balances as presented may vary period to period due to the timing of the next scheduled payment to the warehouse facility. (2) Unused commitment fees ranging from 0 to 70 basis points (“bps”) on our various warehouse facilities are recognized as noninterest expense—general and administrative in our unaudited condensed consolidated statements of operations and comprehensive income (loss). “ML” stands for “Month LIBOR”. As of March 31, 2022, 1ML and 3ML was 0.45% and 0.96%, respectively. As of December 31, 2021, 1ML and 3ML was 0.10% and 0.21%, respectively. As of March 31, 2022 and December 31, 2021, SOFR was 0.29% and 0.05%, respectively. “PR” stands for “Prime Rate”. As of March 31, 2022 and December 31, 2021, PR was 3.50% and 3.25%, respectively. (3) For securitization debt, the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts. Our maturity date represents the legal maturity of the last class of maturing notes. Securitization debt matures as loan collateral payments are made. (4) Represents total capacity as of March 31, 2022. (5) There were no debt discounts or premiums issued during the three months ended March 31, 2022. We paid $700 during the three months ended March 31, 2022 related to debt issuance costs accrued in 2021. (6) Warehouse facility has a prime rate floor of 309 bps. (7) Warehouse facility has a 1ML floor of 25 bps. (8) Warehouse facility incurs different interest rates on its two types of asset classes. One such class incurs interest based on a commercial paper (“CP”) rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.19%, respectively. (9) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.55% and 0.24%, respectively. (10) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.19%, respectively. The facility was amended in the first quarter of 2022 to allow up to $250 million of securitization risk retention securities to be pledged to the warehouse. As of March 31, 2022, $49.8 million of the collateral balance for the facility was related to securitization risk retention securities, with the remainder of the collateral balance related to student loans. (11) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.19%, respectively. Under certain conditions, warehouse facility could incur an interest rate spread of 215 bps. (12) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.18%, respectively. (13) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.16%, respectively. (14) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.16%, respectively. (15) Warehouse facility incurs interest at a spread (as indicated in the table) plus the lower of (a) 3ML plus 35 bps or (b) the CP rate for this facility, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.51% and 0.24%, respectively. (16) Financing was obtained for both asset-backed bonds and residual investments in various personal loan and student loan securitizations, and the underlying collateral are the underlying asset-backed bonds and residual investments. We only state capacity amounts in this table for risk retention facilities wherein we can pledge additional asset-backed bonds and residual investments as of March 31, 2022. (17) As of March 31, 2022, $6.0 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure a letter of credit. Refer to our letter of credit disclosures in Note 15 for more details. Additionally, the interest rate presented is the interest rate on standard withdrawals on our revolving credit facility, while same-day withdrawals incur interest based on PR. (18) Includes $19.1 million of loans pledged as collateral to secure $12.0 million of available borrowing capacity with the Federal Home Loan Bank (“FHLB”), of which $8.2 million was not available as it was utilized to secure letters of credit. Refer to our letter of credit disclosures in Note 15 for more details. Also includes unsecured available borrowing capacity of $7.6 million with correspondent banks. Material Changes to Debt Arrangements During the three months ended March 31, 2022, we closed one risk retention warehouse facility that had a maximum available capacity of $192,141. Our warehouse and securitization debt is secured by a continuing lien and security interest in the loans financed by the proceeds. Within each of our debt facilities, we must comply with certain operating and financial covenants. These financial covenants include, but are not limited to, maintaining: (i) a certain minimum tangible net worth, (ii) minimum cash and cash equivalents, and (iii) a maximum leverage ratio of total debt to tangible net worth. Our debt covenants can lead to restricted cash classifications in our unaudited condensed consolidated balance sheets. Our subsidiaries are restricted in the amount that can be distributed to the parent company only to the extent that such distributions would cause the financial covenants to not be met. We were in compliance with all financial covenants. We assumed $2,000 of debt in the Bank Merger, which was paid off during the first quarter of 2022. We act as a guarantor for our wholly-owned subsidiaries in several arrangements in the case of default. As of March 31, 2022, we have not identified any risks of nonpayment by our wholly-owned subsidiaries. Maturities of Borrowings As of March 31, 2022, future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows: Remainder of 2022 $ — 2023 486,000 2024 — 2025 — 2026 1,200,000 Thereafter — Total $ 1,686,000 |
Temporary Equity
Temporary Equity | 3 Months Ended |
Mar. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Temporary Equity | Temporary Equity Pursuant to SoFi Technologies’ Certificate of Incorporation dated May 28, 2021, the Company is authorized to issue 100,000,000 shares of preferred stock having a par value of $0.0001 per share (“SoFi Technologies Preferred Stock”) and 100,000,000 shares of redeemable preferred stock having a par value of $0.0000025 per share (“SoFi Technologies Redeemable Preferred Stock”). The Company’s Board of Directors has the authority to issue SoFi Technologies Preferred Stock and SoFi Technologies Redeemable Preferred Stock and to determine the rights, preferences, privileges and restrictions, including voting rights, of those shares. The authorized shares of SoFi Technologies Redeemable Preferred Stock is inclusive of 4,500,000 shares of Series 1 redeemable preferred stock (“Series 1 Redeemable Preferred Stock”), which reflect the conversion on a one-for-one basis of shares of Social Finance Series 1 preferred stock in conjunction with the Business Combination. Shares of SoFi Technologies Series 1 Redeemable Preferred Stock that are redeemed, purchased or otherwise acquired by the Company will be canceled and may not be reissued by the Company. The Series 1 Redeemable Preferred Stock remains classified as temporary equity because the Series 1 Redeemable Preferred Stock is not fully controlled by the issuer, SoFi Technologies. As of March 31, 2022, there were no shares of SoFi Technologies Preferred Stock issued and outstanding and there were 3,234,000 shares of Series 1 Redeemable Preferred Stock issued and outstanding, which had an original issuance price of $100.00. Dividends During the three months ended March 31, 2022 and 2021, the holders of Series 1 Redeemable Preferred Stock were entitled to dividends of $9,968 and $9,968, respectively. Dividends payable were $9,968 as of March 31, 2022. There were no dividends payable as of December 31, 2021. There have been no dividend deferrals related to the Series 1 Redeemable Preferred Stock. Warrants In connection with the Series 1 and Series H preferred stock issuances during the year ended December 31, 2019, we also issued 12,170,990 Series H warrants, which were initially accounted for as liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity , and were included within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets. Prior to the Business Combination, the Series H warrants were measured at fair value on a recurring basis and classified as Level 3 because of our reliance on unobservable assumptions, with fair value changes recognized within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss). On May 28, 2021, in conjunction with the Closing of the Business Combination, we measured the final fair value of our Series H warrants. At that time, we reclassified the Series H warrant liability into permanent equity, as the terms of the Series H instrument no longer necessitated liability accounting. Therefore, we did not measure the warrants at fair value subsequent to May 28, 2021. The following table presents the changes in the fair value of the Series H warrant liabilities during the three months ended March 31, 2021, which was prior to the reclassification to permanent equity. Warrant Liabilities Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 39,959 Change in valuation inputs or other assumptions 89,920 Fair value as of March 31, 2021 $ 129,879 |
Permanent Equity
Permanent Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Permanent Equity | Permanent Equity On June 1, 2021, the Company’s common stock began trading on the Nasdaq Global Select Market under the ticker symbol “SOFI”. Pursuant to SoFi Technologies’ Certificate of Incorporation, the Company is authorized to issue 3,000,000,000 shares of common stock, with a par value of $0.0001 per share, and 100,000,000 shares of non-voting common stock, with a par value of $0.0001 per share. As of March 31, 2022, the Company had 915,673,855 shares of common stock and no shares of non-voting common stock issued and outstanding. The Company reserved the following common stock for future issuance as of the dates indicated: March 31, December 31, 2022 2021 Outstanding stock options, RSUs and performance stock units (“PSU”) 105,784,967 92,829,067 Outstanding common stock warrants 12,170,990 12,170,990 Conversion of convertible notes (1) 53,538,000 53,538,000 Possible future issuance under stock plans 21,335,246 32,470,481 Potentially issuable contingent common stock (2) 598,068 — Total common stock reserved for future issuance 193,427,271 191,008,538 ____________________ (1) Represents the number of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the balance sheet date. (2) As of March 31, 2022, includes potentially issuable contingent common stock in connection with the Technisys Merger, which determination is pending final agreement regarding a closing net working capital calculation specified in the merger agreement. See Note 2 for additional information. Dividends There were no dividends declared or paid to common stockholders during the three months ended March 31, 2022 and 2021. Accumulated Other Comprehensive Income (Loss) AOCI primarily consists of accumulated net unrealized gains or losses associated with our investments in AFS debt securities, which commenced during the third quarter of 2021, and foreign currency translation adjustments. The following table presents the rollforward of AOCI, inclusive of the changes in the components of other comprehensive loss for the periods indicated. AFS Debt Securities Foreign Currency Translation Adjustments Total Three Months Ended March 31, 2022 AOCI, beginning balance $ (1,351) $ (120) $ (1,471) Other comprehensive loss before reclassifications (1) (4,616) (38) (4,654) Amounts reclassified from AOCI into earnings 161 — 161 Net current-period other comprehensive loss (2) (4,455) (38) (4,493) AOCI, ending balance $ (5,806) $ (158) $ (5,964) Three Months Ended March 31, 2021 AOCI, beginning balance $ — $ (166) $ (166) Other comprehensive loss before reclassifications (1) — (80) (80) Net current-period other comprehensive loss (2) — (80) (80) AOCI, ending balance $ — $ (246) $ (246) ____________________ (1) Gross realized gains and losses from sales of our investments in AFS debt securities that were reclassified from AOCI to earnings are recorded within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). We did not have investments in AFS debt securities during the three months ended March 31, 2021. Additionally, there were no reclassifications related to foreign currency translation adjustments during the three months ended March 31, 2022 and 2021. (2) There were no tax impacts during any of the periods presented due to reserves against deferred tax assets in jurisdictions where other comprehensive loss activity was generated. For gross amounts of realized gains and losses on our investments in AFS debt securities, see Note 3. Interest income associated with our investments in AFS debt securities is recognized within interest income—other |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation 2021 Stock Option and Incentive Plan In connection with the Closing of the Business Combination, the Company adopted the 2021 Stock Option and Incentive Plan (the “2021 Plan”), which authorized for issuance 63,575,425 shares of common stock in connection with the Business Combination. The 2021 Plan allows for the number of authorized shares to increase on the first day of each fiscal year beginning on January 1, 2022 and ending on and including January 1, 2030. Effective January 1, 2022, our Board of Directors authorized the issuance of an additional 8,937,242 shares under this provision. The 2021 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (including performance stock units), dividend equivalents and other stock or cash based awards for issuance to its employees, non-employee directors and non-employee third parties. Shares associated with option exercises and RSU vesting are issued from the authorized pool. During the three months ended March 31, 2022 and 2021, we incurred cash outflows of $3,593 and $25,989, respectively, related to the payment of withholding taxes for vested RSUs. These cash outflows are presented within net cash provided by (used in) financing activities in the unaudited condensed consolidated statements of cash flows. Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods indicated: Three Months Ended March 31, 2022 2021 Technology and product development $ 17,492 $ 11,616 Sales and marketing 5,133 2,445 Cost of operations 4,143 1,481 General and administrative 50,253 21,912 Total $ 77,021 $ 37,454 Stock Options The following is a summary of stock option activity for the period indicated: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding as of January 1, 2022 21,171,147 $ 6.81 5.8 Granted (1) — n/a Exercised (1,055,775) 1.77 Forfeited (692) 6.82 Expired (55,365) 0.61 Outstanding as of March 31, 2022 20,059,315 $ 7.09 5.6 Exercisable as of March 31, 2022 19,906,559 $ 7.10 5.6 ____________________ (1) There were no stock options granted during the three months ended March 31, 2022. Total compensation cost related to unvested stock options not yet recognized as of March 31, 2022 was $4.5 million and will be recognized over a weighted average period of approximately 0.9 years. Restricted Stock Units RSUs are equity awards granted to employees that entitle the holder to shares of our common stock when the awards vest. For employees hired on or after January 1, 2022, new hire RSU grants typically vest 12.5% on the first vesting date, which occurs approximately six months after the date of grant, and ratably each quarter of the ensuing 14-quarter period. For employees hired before January 1, 2022, new hire RSU grants typically vest 25% on the first vesting date, which occurs approximately one year after the date of grant, and ratably each quarter of the ensuing 12-quarter period. RSUs have been issued under other vesting schedules, including grants to existing employees. The following table summarizes RSU activity for the period indicated: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2022 48,687,524 $ 12.23 Granted 19,548,471 9.78 Replacement Awards (1) 630,654 10.69 Vested (2) (4,951,204) 11.57 Forfeited (1,282,379) 11.34 Outstanding as of March 31, 2022 (3) 62,633,066 $ 11.52 ________________________ (1) In connection with the Technisys Merger, we converted outstanding Technisys performance awards into RSUs to acquire common stock of SoFi, and for which $2,855 of the fair value was attributed to pre-combination services. See Note 2 for additional information. (2) The total fair value, based on grant date fair value, of RSUs that vested during the three months ended March 31, 2022 was $57.3 million. (3) Includes 178,021 RSUs that were granted in 2020 and later modified in an improbable-to-probable modification (Type III), related to which $954 of share-based compensation expense was recorded during the three months ended March 31, 2022. As of March 31, 2022, there was $664.6 million of unrecognized compensation cost related to unvested RSUs, which will be recognized over a weighted average period of approximately 3.2 years. Performance Stock Units The following table summarizes PSU activity for the period indicated: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2022 22,970,396 $ 9.52 Granted 122,190 3.71 Outstanding as of March 31, 2022 23,092,586 $ 9.49 Compensation cost associated with PSUs is recognized using the accelerated attribution method for each of the three vesting tranches over the respective derived service period. We determine the grant-date fair value of PSUs utilizing a Monte Carlo simulation model. The following table summarizes the inputs used for estimating the fair value of PSUs granted during the period indicated: Three Months Ended Input March 31, 2022 Risk-free interest rate 1.6% Expected volatility 37.7% Fair value of common stock $12.06 Dividend yield 0% Our use of a Monte Carlo simulation model requires the use of subjective assumptions: • The risk-free interest rate assumption was based on the U.S. Treasury rate at the time of grant commensurate with the remaining term of the PSUs. • The expected volatility assumption was based on the implied volatility of our common stock from a set of comparable publicly-traded companies. • The fair value of our common stock was based on the closing stock price on the date of grant. • We assumed no dividend yield because we have historically not paid out dividends to common stockholders. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For interim periods, we follow the general recognition approach whereby tax expense is recognized through the use of an estimated annual effective tax rate, which is applied to the year-to-date operating results. Additionally, we recognize tax expense or benefit for any discrete items occurring within the interim period that were excluded from the estimated annual effective tax rate. Our effective tax rate may be subject to fluctuations during the year due to impacts from the following items: (i) changes in forecasted pre-tax and taxable income or loss, (ii) changes in statutory law or regulations in jurisdictions where we operate, (iii) audits or settlements with taxing authorities, (iv) the tax impact of expanded product offerings or business acquisitions, and (v) changes in valuation allowance assumptions. For the three months ended March 31, 2022 and 2021, we recorded income tax expense of $752 and $1,099, respectively, which was primarily due to income tax expense associated with the profitability of SoFi Lending Corp. in some state jurisdictions where separate company filing is required. For the three-month 2022 period, this expense was partially offset by income tax benefits from foreign losses in jurisdictions with net deferred tax liabilities related to the Technisys Merger. See Note 2 for additional information. There were no material changes to our unrecognized tax benefits during the three months ended March 31, 2022 and we do not expect to have any significant changes to unrecognized tax benefits over the next 12 months. During the three months ended March 31, 2022, we maintained a full valuation allowance against our net deferred tax assets in applicable jurisdictions. In certain foreign and state jurisdictions where sufficient deferred tax liabilities exist, no valuation allowance is recognized. Management reviews all available positive and negative evidence in assessing the realizability of deferred tax assets. We will continue to recognize a full valuation allowance until there is sufficient positive evidence to support its release. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties The Company defines related parties as members of our Board of Directors, entity affiliates, executive officers and principal owners of the Company’s outstanding stock and members of their immediate families. Related parties also include any other person or entity with significant influence over the Company’s management or operations. Apex Loan In February 2021, Apex Clearing Holdings, LLC (“Apex”), in which we historically had a minority ownership, paid us $18,304 in settlement of all of their outstanding obligations to us, which consisted of outstanding principal balances of $16,693 and accrued interest of $1,611. During the three months ended March 31, 2021, we recognized interest income of $211 within interest income—related party notes , and we reversed the remainder of the loss for the discount to fair value that had not yet been accreted of $169 within noninterest income—other |
Commitments, Guarantees, Concen
Commitments, Guarantees, Concentrations and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees, Concentrations and Contingencies | Commitments, Guarantees, Concentrations and Contingencies Leases We primarily lease our office premises under multi-year, non-cancelable operating leases. Our operating leases have terms expiring from 2022 to 2040, exclusive of renewal option periods. Our office leases contain renewal option periods ranging from one Lease Concession The lessor for one of our operating leases allowed us to defer payments on the lease beginning in April 2020 as a result of our inability to use the leased premises during the COVID-19 pandemic. During the concession period, we did not recognize operating lease cost and we did not remeasure the right-of-use asset or lease liability. We regained access to the leased premises in September 2021 and resumed lease amortization at that time. In the absence of this concession, we would have recognized additional operating lease cost of $566 during the three months ended March 31, 2021. Concentrations Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, restricted cash and restricted cash equivalents, residual investments and loans. We hold cash and cash equivalents and restricted cash and restricted cash equivalents in accounts at regulated domestic financial institutions in amounts that may exceed FDIC insured amounts. We believe these institutions are of high credit quality. We are dependent on third-party funding sources to originate loans. Additionally, we sell loans to various third parties. We have historically sold loans to a limited pool of third-party buyers. No individual third-party buyer accounted for 10% or more of consolidated total net revenues for any of the periods presented. The Company is exposed to default risk on borrower loans originated and financed by us. There is no single borrower or group of borrowers that comprise a significant concentration of the Company’s loan portfolio. Likewise, the Company is not overly concentrated within a group of channel partners or other customers, with the exception of our distribution of personal loan residual interests in our sponsored personal loan securitizations, which we market to third parties, and the aforementioned whole loan buyers. Given we have a limited number of prospective buyers for our personal loan securitization residual interests, this might result in us utilizing a significant amount of our own capital to fund future residual interests in personal loan securitizations, or impact the execution of future securitizations if we are limited in our own ability to invest in the residual interest portion of future securitizations, or find willing buyers for securitization residual interests. Contingencies Legal Proceedings In limited instances, the Company may be subject to a variety of claims and lawsuits in the ordinary course of business. Regardless of the final outcome, defending lawsuits, claims, government investigations, and proceedings in which we are involved is costly and can impose a significant burden on management and employees, and there can be no assurances that we will receive favorable final outcomes. SoFi Stadium. In September 2019, we established a 20-year partnership with LA Stadium and Entertainment District at Hollywood Park in Inglewood, California (“StadCo”), through a naming and sponsorship agreement, which, among other things, provides SoFi with exclusive naming rights of SoFi Stadium and an official partnership with the Los Angeles Chargers and Los Angeles Rams and with the performance venue, which shares a roof with the stadium, and the surrounding planned entertainment district, which is anticipated to include office space, retail space and hotel and dining options. In September 2020, we discussed certain provisions of the naming and sponsorship agreement with StadCo in light of the COVID-19 pandemic. Based on these discussions, SoFi paid sponsorship fees for the initial contract year (July 1, 2020 to March 31, 2021) of $9.8 million, of which $6.5 million was paid during 2020 and $3.3 million was paid in January 2021. The parties are revisiting the sponsorship fees to determine the ultimate amount payable for the initial contract year and have agreed to seek to engage a third party with expertise in the valuation of sports media rights and sports sponsorship or promotional rights (“Valuation Expert”) to perform an evaluation of the delivered value during the initial contract year. The valuation has not begun as of the date of this Quarterly Report on Form 10-Q. Therefore, the Company is exposed to additional potential sales and marketing expense of up to $12.7 million, which reflects the difference between the actual sponsorship fees paid during the initial contract year and the commitment for the initial contract year made under the Naming and Sponsorship Agreement. As of March 31, 2022, we are unable to estimate the amount of reasonably possible additional costs we may incur with respect to this contingency. Moreover, we have not determined that the likelihood of additional cost is probable. Therefore, as of March 31, 2022, we have not recorded additional expense related to this contingency. Juarez et al v. SoFi Lending Corp. On January 27, 2022, the parties advised the court that they had reached agreement on nearly all material terms of the settlement and were in the process of documenting the settlement and accompanying class action settlement notice and claim form. The settlement agreement was fully executed on April 18, 2022 and the plaintiffs have moved for preliminary approval of the settlement. The proposed class settlement, which contemplates an aggregate payment by SoFi in an immaterial amount, remains subject to final court review and approval, which we expect to occur in 2023. In re Renren Inc. Derivative Litigation. On April 13, 2022, the Court held a mediation with the parties and announced that, given the parties' inability to reach an agreement, the Court is going to approve a settlement over objections, and on April 30, 2022, the plaintiffs filed an order to show cause seeking to enforce the October 2021 stipulation of settlement with minor amendments. We do not expect these orders ultimately to affect the plaintiffs’ agreement to dismiss the claims against Social Finance with prejudice. Guarantees We have three types of repurchase obligations that we account for as financial guarantees, which are disclosed in our Annual Report on Form 10-K. In the event of a repurchase, we are typically required to pay the purchase price of the loans transferred. As of March 31, 2022 and December 31, 2021, the Company accrued liabilities within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets of $5,201 and $7,441, respectively, related to our estimated repurchase obligation, with the corresponding charges recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). As of both March 31, 2022 and December 31, 2021, the amount associated with loans sold that were subject to the terms and conditions of our repurchase obligations totaled $6.5 billion. As of March 31, 2022 and December 31, 2021, the Company had a total of $9.1 million in letters of credit outstanding with financial institutions, which were issued for the purpose of securing certain of the Company’s operating lease obligations. A portion of the letters of credit was collateralized by $3.1 million of the Company’s cash, which is included within restricted cash and restricted cash equivalents in the unaudited condensed consolidated balance sheets. As of March 31, 2022, the Company had a total of $8.2 million in letters of credit outstanding with the FHLB, which serve as collateral for public deposits and were collateralized by loans. Mortgage Banking Regulatory Mandates The Company is subject to certain state-imposed minimum net worth requirements for the states in which the Company is engaged in the business of a residential mortgage lender. As of March 31, 2022 and December 31, 2021, the Company was in compliance with all minimum net worth requirements and, therefore, has not accrued any liabilities related to fines or penalties. Retirement Plans The Company has a 401(k) plan that covers all employees meeting certain eligibility requirements. The Company’s contributions to the plan are discretionary. The Company has not made any contributions to the plan to date. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share We compute loss per share attributable to common stock using the two-class method required for participating interests. Prior to the Business Combination, our participating interests included all series of our preferred stock. Series 1 Redeemable Preferred Stock has preferential cumulative dividend rights. Pursuant to ASC 260, Earnings Per Share , for each period presented, we increased net loss by the contractual amount of dividends payable to holders of Series 1 Redeemable Preferred Stock before allocating any remaining undistributed earnings to all participating interests. Prior to the Business Combination, all other classes of preferred stock, except for Series C, had stated dividend rights, which had priority over undistributed earnings. The remaining losses were shared pro-rata among the preferred stock (with the exception of Series 1 Redeemable Preferred Stock) and common stock outstanding during the measurement period, as if all of the losses for the period had been distributed. While our calculation of loss per share accounted for a loss allocation to all participating shares, we only presented loss per share below for our common stock. Basic loss per share of common stock was computed by dividing net loss, adjusted for the impact of Series 1 Redeemable Preferred Stock dividends and loss allocated to other participating interests, as applicable, by the weighted average number of shares of common stock outstanding during the period. Because the amount available to distribute to all participating interests after adjusting for redeemable preferred stock dividends was negative in all periods presented, we did not allocate any loss to participating interests in determining the numerator of the basic and diluted loss per share computation, as the allocation of loss would have been anti-dilutive. Further, we excluded the effect of all potentially dilutive common stock elements from the denominator in the computation of diluted loss per share, as their inclusion would have been anti-dilutive. The calculation of basic and diluted loss per share was as follows for the periods indicated: Three Months Ended March 31, 2022 2021 Numerator: Net loss $ (110,357) $ (177,564) Less: Redeemable preferred stock dividends (9,968) (9,968) Net loss attributable to common stockholders – basic and diluted $ (120,325) $ (187,532) Denominator: Weighted average common stock outstanding – basic 852,853,596 116,152,593 Weighted average common stock outstanding – diluted 852,853,596 116,152,593 Loss per share – basic $ (0.14) $ (1.61) Loss per share – diluted $ (0.14) $ (1.61) We excluded the effect of the below elements from our calculation of diluted loss per share, as their inclusion would have been anti-dilutive, as there were no earnings attributable to common stockholders. These amounts represent the number of instruments outstanding at the end of each respective period: Three Months Ended March 31, 2022 2021 Common stock options 20,059,315 28,188,953 Common stock warrants 12,170,990 — Unvested RSUs 62,633,066 46,762,343 Unvested PSUs 23,092,586 — Convertible notes (1) 53,538,000 — Contingent common stock (2) 6,903,663 1,601,781 Potentially issuable contingent common stock (3) 598,068 — Redeemable preferred stock exchangeable for common stock — 465,916,522 Redeemable preferred stock warrants exchangeable for common stock — 12,170,990 ________________________ (1) Represents the number of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the balance sheet date. (2) For the three months ended March 31, 2022, includes contingently returnable common stock in connection with the Technisys Merger, which remains subject to further adjustment, pending final agreement regarding a closing net working capital calculation specified in the merger agreement. See Note 2 for additional information. For the three months ended March 31, 2021, included 320,649 contingently issuable common stock in connection with our acquisition of 8 Limited, which was subsequently issued during the fourth quarter of 2021, as well as 1,281,132 contingently issuable common stock related to an adjustment to a common stock issuance in December 2020, which was subsequently issued at the time of the closing of the Business Combination. (3) For the three months ended March 31, 2022, includes the maximum amount of potentially issuable contingent common stock in connection with the Technisys Merger, which is pending final agreement regarding a closing net working capital calculation specified in the merger agreement. See Note 2 for additional information. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Segment Organization and Reporting Framework The Company has three reportable segments: Lending, Technology Platform and Financial Services. Each of our reportable segments is a strategic business unit that serves specific needs of our members based on the products and services provided. The segments are based on the manner in which management views the financial performance of the business. The reportable segments also reflect the Company’s organizational structure. Each segment has a segment manager who reports directly to the Chief Operating Decision Maker (“CODM”). The CODM has ultimate authority and responsibility over resource allocation decisions and performance assessment. The operations of acquired businesses have been integrated into, or managed as part of, our existing reportable segments. Activities that are not part of a reportable segment, such as management of our corporate investment portfolio and asset/liability management by our centralized treasury function (as further discussed below), are included in the Corporate/Other non-reportable segment (previously referred to as the “Other” non-reportable segment). Contribution profit (loss) is the primary measure of segment profit and loss reviewed by the CODM and is intended to measure the direct profitability of each segment in the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources. Contribution profit (loss) is defined as total net revenue for each reportable segment less: • fair value changes in servicing rights and residual interests classified as debt that are attributable to assumption changes, which impact the contribution profit within the Lending segment. These fair value changes are non-cash in nature and are not realized in the period; therefore, they do not impact the amounts available to fund our operations; and • expenses directly attributable to the corresponding reportable segment. Directly attributable expenses primarily include compensation and benefits and sales and marketing, and vary based on the amount of activity within each segment. Directly attributable expenses also include loan origination and servicing expenses, professional services, product fulfillment, lead generation and occupancy-related costs. Expenses are attributed to the reportable segments using either direct costs of the segment or labor costs that can be attributed based upon the allocation of employee time for individual products. During the three months ended March 31, 2022, we implemented a funds transfer pricing (“FTP”) framework to attribute net interest income to our business segments based on their usage and/or provision of funding. The primary objective of the FTP framework is to transfer interest rate risk from the business segments by providing matched duration of funding of assets and liabilities to allocate interest income and interest expense to each segment. Therefore, the financial impact, management and reporting of interest rate risk is centralized in Corporate/Other, where it is monitored and managed. Under the FTP framework, treasury provides a funds credit for sources of funds, such as deposits generated by our Financial Services segment, and a funds charge for the use of funds, such as loan originations in our Lending segment. The process for determining FTP credits and charges is based on a number of factors and assumptions, including prevailing market interest rates, the expected duration of interest-earning and interest-bearing assets and liabilities, contingent risks and behaviors, and the Company’s broader funding profile. As the durations of asset and liabilities are typically not perfectly matched, the residual impact of the FTP framework is reflected within Corporate/Other. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in further refinements or changes to the framework in future periods. The application of the FTP framework impacts the measure of net interest income and, thereby, total net revenue and contribution profit (loss) for our Lending and Financial Services segments, as well as the total net revenue of Corporate/Other, but has no impact on our consolidated results of operations. Prior to implementing the FTP framework, the presentation of our Lending and Financial Services segments’ net interest income reflected the difference between interest income earned on our loans and the actual interest expense incurred on any loans that were financed. Under the FTP framework, such interest expense is incurred by treasury within Corporate/Other and replaced by an FTP charge. Application of our current FTP framework during the comparative period ended March 31, 2021, would have impacted Lending and Financial Services segment net interest income by $(110) and $(29), respectively. The offsetting impact would have been reflected within net interest income in Corporate/Other. The accounting policies of our reportable segments are consistent with those described in Note 1 and in our Annual Report on Form 10-K, except for the application of the FTP framework and the allocations of consolidated income and consolidated expenses. Assets are not allocated to reportable segments, as our CODM does not evaluate reportable segments using discrete asset information. Segment Information Lending. The Lending segment includes our personal loan, student loan and home loan products and the related servicing activities. We originate loans in each of the aforementioned channels with the objective of either selling whole loans or securitizing a pool of originated loans for transfer to third-party purchasers. Revenues in the Lending segment are driven by changes in the fair value of our whole loans and securitization interests (inclusive of our economic hedging activities), gains or losses recognized on transfers that meet the true sale requirements, and our servicing-related activities, which mainly consist of servicing fees and the changes in our servicing assets over time. In our Lending segment, we also earn the difference between interest income earned on our loans and interest expense, as determined using the FTP framework for a portion of the 2022 period, and from our warehouse financing in the remainder of the 2022 period and the full 2021 period. Our CODM considers net interest income in addition to contribution profit in evaluating the performance of our Lending segment and making resource allocation decisions. Therefore, we present interest income net of interest expense. Technology Platform. The Technology Platform segment includes our technology products and solutions revenue, which was primarily related to our platform-as-a-service through Galileo, which provides the infrastructure to facilitate core client-facing and back-end capabilities, such as account setup, accounting funding, direct deposit, authorizations and processing, payments functionality and check account balance features. Beginning in March 2022, this segment also includes our revenue earned by Technisys, which expanded our segment to include a cloud-native digital and core banking platform offering and which results in the sale of software licenses and the provision of related technology solutions. See Note 2 for additional information on the Technisys Merger. Financial Services. The Financial Services segment primarily includes our SoFi Checking and Savings product (which commenced in the first quarter of 2022), SoFi Money cash management product, SoFi Invest product, SoFi Credit Card product, SoFi Relay personal finance management product and other financial services, such as equity capital markets and advisory services, lead generation, and content for other financial services institutions and our members. SoFi Checking and Savings provides members a digital banking experience that offers no account fees, 2-day early paycheck and a competitive annual percentage yield. SoFi Money cash management provides members a digital cash management experience, interest income and the ability to separate money balances into various subcategories. SoFi Invest provides investment features and financial planning services that we offer to our members. Revenues in the Financial Services segment include interest income earned and interest expense incurred under the FTP framework, payment network fees on our member transactions and pay for order flow, digital assets transaction fees and share lending arrangements in SoFi Invest. We also earn referral fees in connection with referral activity we facilitate through our platform. The referral fee is paid to us by third-party partners that offer services to end users who do not use one of our product offerings, but who were referred to the partners through our platform. Beginning in the third quarter of 2021, referral fees also include referral fulfillment fees earned for providing pre-qualified borrower referrals to a third-party partner who separately contracts with a loan originator. Our CODM considers net interest income in addition to contribution profit (loss) in evaluating the performance of our Financial Services segment and making resource allocation decisions. Under the FTP framework, the Financial Services segment earns interest income that is reflective of an FTP credit for deposits provided to the overall business, as well as incurs interest expense that is reflective of an FTP charge related to the use of funding for SoFi Credit Card. Corporate/Other. Non-segment operations are classified as Corporate/Other (previously referred to as “Other”), which includes net revenues associated with corporate functions that are not directly related to a reportable segment. Beginning in the first quarter of 2022, net interest income within Corporate/Other reflects the residual impact from FTP charges and FTP credits allocated to our reportable segments under our FTP framework. These non-segment net revenues also include interest income earned on corporate cash balances, nonrecurring income on certain investments from available cash on hand, such as our investments in AFS debt securities (which investments are not interconnected with our core business lines and, thereby, reportable segments), and interest expense on other corporate borrowings, such as our revolving credit facility, the seller note issued in connection with our acquisition of Galileo (which was repaid in February 2021), and the amortization of debt issuance costs and original issue discount on our convertible notes. During the three months ended March 31, 2021, net revenues within Corporate/Other also included $211 of interest income and $169 of reversal of loss on discount to fair value in connection with related party transactions. Refer to Note 14 for further discussion of our related party transactions. Segment Results The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment for the periods indicated. Three Months Ended March 31, 2022 Lending (2) Technology Platform (1) Financial Services (1)(2) Reportable Segments Total (2) Corporate/Other (1)(2) Total Net revenue Net interest income (loss) $ 94,354 $ — $ 5,882 $ 100,236 $ (5,303) $ 94,933 Noninterest income (loss) 158,635 60,805 17,661 237,101 (1,690) 235,411 Total net revenue (loss) $ 252,989 $ 60,805 $ 23,543 $ 337,337 $ (6,993) $ 330,344 Servicing rights – change in valuation inputs or assumptions (3) (11,580) — — (11,580) Residual interests classified as debt – change in valuation inputs or assumptions (4) 2,963 — — 2,963 Directly attributable expenses (111,721) (42,550) (73,058) (227,329) Contribution profit (loss) $ 132,651 $ 18,255 $ (49,515) $ 101,391 Three Months Ended March 31, 2021 Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Net revenue Net interest income (loss) $ 51,777 $ (36) $ 229 $ 51,970 $ (4,690) $ 47,280 Noninterest income 96,200 46,101 6,234 148,535 169 148,704 Total net revenue (loss) $ 147,977 $ 46,065 $ 6,463 $ 200,505 $ (4,521) $ 195,984 Servicing rights – change in valuation inputs or assumptions (3) 12,109 — — 12,109 Residual interests classified as debt – change in valuation inputs or assumptions (4) 7,951 — — 7,951 Directly attributable expenses (80,351) (30,380) (41,982) (152,713) Contribution profit (loss) $ 87,686 $ 15,685 $ (35,519) $ 67,852 ____________________ (1) During the three months ended March 31, 2022, total net revenue for the Technology Platform segment included $770 of intercompany fees earned by Galileo from SoFi, which is a Galileo client. There is an equal and offsetting expense reflected within the Financial Services segment directly attributable expenses representing the intercompany fees incurred to Galileo. The intercompany revenue and expense are eliminated in consolidation. The revenue is eliminated within Corporate/Other and the expense is adjusted in our reconciliation of directly attributable expenses below. We did not recast the segment information for these intercompany amounts for the three months ended March 31, 2021, but rather reflected the full year 2021 impact within the fourth quarter of 2021, as inter-quarter amounts were determined to be immaterial. (2) During the three months ended March 31, 2022, we implemented a centralized FTP framework to attribute net interest income to our business segments based on their usage and/or provision of funding, which impacted the measure of net interest income and, thereby, total net revenue and contribution profit (loss) in our Lending and Financial Services segments, as well as the total net revenue in Corporate/Other, but had no impact on our consolidated results of operations. The net interest income presented within Corporate/Other represents the residual impact of the FTP charges and FTP credits on our reportable segments. (3) Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment and default rates and discount rates. This non-cash change, which is recorded within noninterest income in the unaudited condensed consolidated statements of operations and comprehensive income (loss) is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. (4) Reflects changes in fair value inputs and assumptions, including conditional prepayment and default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the unaudited condensed consolidated statements of operations and comprehensive income (loss). The fair value change attributable to assumption changes has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to securitization collateral cash flows), or the general operations of our business. As such, this non-cash change in fair value during the period is adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. The following table reconciles reportable segments total contribution profit to loss before income taxes for the periods presented. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources. Three Months Ended March 31, 2022 2021 Reportable segments total contribution profit $ 101,391 $ 67,852 Corporate/Other total net loss (6,993) (4,521) Intercompany technology platform expenses 770 — Servicing rights – change in valuation inputs or assumptions 11,580 (12,109) Residual interests classified as debt – change in valuation inputs or assumptions (2,963) (7,951) Expenses not allocated to segments: Share-based compensation expense (77,021) (37,454) Depreciation and amortization expense (30,698) (25,977) Fair value change of warrant liabilities — (89,920) Employee-related costs (1) (42,690) (32,280) Other corporate and unallocated expenses (2) (62,981) (34,105) Loss before income taxes $ (109,605) $ (176,465) __________________ (1) Includes compensation, benefits, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments. (2) Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing and advertising costs, tools and subscription costs, professional services costs, corporate insurance expense and transaction-related expenses. |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Regulatory Capital | Regulatory Capital SoFi Technologies, a bank holding company, and SoFi Bank, a nationally chartered association, are required to comply with applicable capital adequacy regulations established by U.S banking regulators. These requirements establish required minimum ratios for Common Equity Tier 1 (“CET1”) risk-based capital, Tier 1 risk-based capital, total risk-based capital and a Tier 1 leverage ratio; set risk-weighting for assets and certain other items for purposes of the risk-based capital ratios; and define what qualifies as capital for purposes of meeting the capital requirements. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company’s financial statements. Additionally, regulatory capital rules include a capital conservation buffer of 2.5% that is added on top of each of the minimum risk-based capital ratios in order to avoid restrictions on capital distributions and discretionary bonuses. The risk- and leverage-based capital ratios and amounts as of March 31, 2022 are presented below. March 31, 2022 Amount Ratio Required Minimum (1) Well-Capitalized Minimum (2) SoFi Bank CET1 risk-based capital $ 761,780 68.6 % 7.0 % 6.5 % Tier 1 risk-based capital 761,780 68.6 % 8.5 % 8.0 % Total risk-based capital 762,765 68.7 % 10.5 % 10.0 % Tier 1 leverage 761,780 59.4 % 6.5 % 5.0 % Risk-weighted assets $ 1,110,072 Quarterly adjusted average assets 1,282,720 SoFi Technologies CET1 risk-based capital $ 3,144,337 34.0 % 7.0 % N/A Tier 1 risk-based capital 3,144,337 34.0 % 8.5 % N/A Total risk-based capital 3,482,197 37.7 % 10.5 % N/A Tier 1 leverage 3,144,337 35.7 % 6.5 % N/A Risk-weighted assets $ 9,240,958 Quarterly adjusted average assets 8,810,780 ____________________ (1) Required minimums presented include a capital conservation buffer. (2) The well-capitalized minimum measure is applicable at the bank level only. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Management of the Company performed an evaluation of subsequent events that occurred after the balance sheet date through the date of this Quarterly Report on Form 10-Q and determined that there were no subsequent events to report. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and certain consolidated VIEs. All intercompany accounts were eliminated in consolidation. The unaudited condensed consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the SEC. We condensed or omitted certain notes and other financial information from the interim financial statements presented herein. The financial data and other information disclosed in these Notes to Unaudited Condensed Consolidated Financial Statements related to the three months ended March 31, 2022 and 2021 are unaudited and should be read in conjunction with the annual consolidated statements included in our annual filing on Form 10-K filed with the SEC on March 1, 2022. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the Company’s financial condition and results of operations and cash flows for the interim periods presented. The results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022. In our unaudited condensed consolidated statements of operations and comprehensive income (loss), we renamed the financial statement line item for noninterest income—technology platform fees to noninterest income—technology products and solutions to accommodate noninterest income earned from Technisys, which we acquired in the first quarter of 2022. See Note 1 for our presentation of disaggregated revenue and Note 2 for our discussion of business combinations. As a result of the Business Combination completed on May 28, 2021, prior period share and per share amounts presented in the accompanying unaudited condensed consolidated financial statements and these related notes have been retroactively converted in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations |
Use of Judgments, Assumptions and Estimates | The preparation of our unaudited condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the amounts reported in our unaudited condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of our assets and liabilities. These judgments, assumptions and estimates include, but are not limited to, the following: (i) fair value measurements; (ii) share-based compensation expense; (iii) consolidation of variable interest entities; and (iv) business combinations. These judgments, estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions. |
Cash and Cash Equivalents | Cash and cash equivalents primarily include unrestricted deposits with financial institutions in checking, money market and short-term certificate of deposit accounts and certain short-term commercial paper. We consider all highly liquid investments with original maturity dates of three months or less to be cash equivalents. |
Restricted Cash and Restricted Cash Equivalents | Restricted cash and restricted cash equivalents consist primarily of cash deposits, certificate of deposit accounts held on reserve, money market funds held by consolidated VIEs, and collection balances. These accounts are earmarked as restricted because the balances are either member balances held in our custody, cash segregated for regulatory purposes associated with brokerage activities, escrow requirements for certain debt facilities and derivative agreements, deposits required by various bank holding companies we partner with (“Member Banks”) that support one or more of our products, loan collection balances awaiting disbursement, consolidated VIE cash balances that we cannot use for general operating purposes, or other legally restricted balances. |
Loans | Our loan portfolio consists of (i) personal loans, student loans and home loans, which are held for sale and measured at fair value, and (ii) credit card loans, and commercial and consumer banking loans acquired in the first quarter of 2022, which are measured at amortized cost. The commercial and consumer banking portfolio is primarily inclusive of commercial real estate loans, commercial and industrial loans and residential real estate and other consumer loans. Loans Measured at Fair Value Loans that we intend to sell to third-party purchasers or for which we do not have the ability and intent to hold for the foreseeable future are classified as held for sale. We elected the fair value option to measure our personal loans, student loans and home loans, as we believe that fair value best reflects the expected economic performance of the loans, as well as our intentions given our gain-on-sale origination model. Therefore, these loans are carried at fair value on a recurring basis. All direct fees and costs related to the origination process are recognized in earnings as earned or incurred. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). We record cash flows related to loans held for sale within cash flows from operating activities in the unaudited condensed consolidated statements of cash flows. Securitized loans are assets held by consolidated special purpose entities (“SPE”) as collateral for bonds issued, for which fair value changes are recorded within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Gains or losses recognized upon deconsolidation of a VIE are also recorded within noninterest income—securitizations . Loans Measured at Amortized Cost For our loans measured at amortized cost, direct loan origination costs are deferred and amortized on a straight-line basis over the privilege period (12 months) for credit card loans and amortized using the effective interest method over the contractual term of the loans for commercial and consumer banking loans, within interest income—loans in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2022, we amortized $1,597 of deferred costs into interest income and had a remaining balance of deferred costs of $4,127 as of March 31, 2022. Commercial and consumer banking loans are reported as delinquent when they become 30 or more days past due. For all commercial and consumer banking loans, we stop accruing interest and reverse all accrued but unpaid interest after 90 days of delinquency. For consumer banking loans, delinquent loans are charged off after 120 days of delinquency or on the date of confirmed loss. Purchased Credit Deteriorated Assets In connection with the Bank Merger, as further discussed in Note 2, we obtained purchased credit deteriorated (“PCD”) loans. PCD loans are acquired financial assets (or groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination. Indicators that an acquired asset may meet the definition of a PCD asset include days past due status, nonaccrual status, troubled debt restructuring status and other loan agreement violations. We were required to record an allowance for the acquired PCD loans, with a corresponding increase to the amortized cost basis as of the acquisition date. Recognition of the initial allowance for credit losses upon the acquisition of PCD loans does not impact net income. Changes in estimates of expected credit losses after acquisition are recognized through the provision for credit losses. See Note 7 for the rollforward of our allowance for credit losses. Troubled Debt Restructuring In connection with the Bank Merger, as further discussed in Note 2, we obtained troubled debt restructuring (“TDR”) loans. TDR loans are those for which the contractual terms have been restructured to grant one or more concessions to a borrower who is experiencing financial difficulty. Concessions may include several types of assistance to aid customers and maximize payments received, and vary by borrower-specific characteristics. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs. TDRs identified by Golden Pacific prior to the acquisition were recorded at fair value with a new accounting basis established as of the date of acquisition. There were no modifications subsequent to acquisition. |
Allowance for Credit Losses | As of March 31, 2022, we applied ASC 326, Financial Instruments—Credit Losses (“ASC 326”), to the following: (i) cash equivalents and restricted cash equivalents, (ii) accounts receivable from contracts with customers, inclusive of servicing related receivables, (iii) margin receivables, which were attributable to our activities at 8 Limited, (iv) certain loan repurchase reserves representing guarantees of credit exposure, (v) loans measured at amortized cost, including credit card, and commercial and consumer banking loans acquired during the first quarter of 2022, and (vi) investments in available-for-sale debt securities. Our approaches to measuring the allowance for credit losses are disclosed in our Annual Report on Form 10-K, with notable updates provided herein. Credit card : Our estimate of the allowance for credit losses on credit card as of March 31, 2022 and December 31, 2021 was $16,500 and $7,037, respectively. Accrued interest receivables written off during the three months ended March 31, 2022 were $451 and during the three months ended March 31, 2021 were immaterial. See Note 7 for a rollforward of the allowance for credit losses related to credit card. Investments in Available-For-Sale Debt Securities An allowance for credit losses on our investments in available-for-sale (“AFS”) debt securities is required for any portion of impaired securities that is attributable to credit-related factors. As of March 31, 2022, we concluded that the credit- |
Equity Method Investments | In August 2021, we purchased a 5% interest in Lower Holding Company (“Lower”) for $20,000 and were granted a seat on Lower’s board of directors. We accounted for the investment under the equity method of accounting. The investment was not deemed to be significant under either Regulation S-X, Rule 3-09 or Rule 4-08(g). In January 2022, we relinquished our seat on Lower’s board of directors, and have no further rights to a seat on Lower’s board of directors. As such, we no longer have significant influence over the investee, and we ceased recognizing Lower equity investment income subsequent to that date. Our equity method investment income for the three months ended March 31, 2022 was immaterial. Additionally, we did not receive any distributions during the three months ended March 31, 2022. As of March 31, 2022, our investment was presented within other assets in the unaudited condensed consolidated balance sheets and was measured using the measurement alternative method of accounting, which is further discussed in Note 8. |
Property, Equipment and Software | Software includes software acquired in business combinations, purchased software and capitalized software development costs. The capitalization of software development costs is based on whether the software is for internal use, or is to be sold or otherwise marketed. Costs related to internally-developed software for internal use are capitalized when preliminary project efforts are successfully completed, and it is probable that both the project will be completed and the software will be used as intended. For software to be sold or marketed, development costs are capitalized after the technological feasibility of the software has been established. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts and costs incurred for upgrades and functionality enhancements. Research and development costs incurred prior to the establishment of technological feasibility (for software to be sold or marketed) or prior to completion of preliminary project efforts (for internal use software) are expensed as incurred. |
Foreign Currency Translation Adjustments | We revalue assets, liabilities, income and expense denominated in non-United States currencies into United States dollars using applicable exchange rates. For foreign subsidiaries in which the functional currency is the subsidiary’s local currency, gains and losses relating to foreign currency translation adjustments are included in accumulated other comprehensive loss in our unaudited condensed consolidated balance sheets. For foreign subsidiaries in which the functional currency is the United States Dollar, gains and losses relating to foreign currency transaction adjustments are included within earnings in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Due to the highly inflationary economic environment in Argentina, we use the United States Dollar as the functional currency of our Argentinian operations in accordance with ASC 830, Foreign Currency Matters . Our activities in Argentina are related to our Technology Platform segment and commenced in the first quarter of 2022 with the Technisys Merger. |
Revenue Recognition | In accordance with ASC 606, Revenue From Contracts With Customers (“ASC 606”), in each of our revenue arrangements, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects our expected consideration in exchange for those goods or services. Our arrangements accounted for under ASC 606 are discussed in our Annual Report on Form 10-K, with notable updates provided herein. Technology Products and Solutions We earn fees for providing an integrated platform as a service for financial and non-financial institutions. Within our technology products and solutions fee arrangements, certain contracts contain a provision for a fixed, upfront implementation fee related to setup activities, which represents an advance payment for future technology platform services. In these arrangements our implementation fees are recognized ratably over the contract life, as we consider the implementation fee partially earned each month that we meet our performance obligation over the life of the contract. In other arrangements, we receive software license and solutions fees in advance of performance, which are also deferred, and the revenue is not recognized until the related performance obligations are met. Commencing in March 2022 with the Technisys Merger, we earn subscription and service fees for providing software licenses and associated services. Software license and service arrangements comprise one or more software licenses, implementation, maintenance, and other software-related services. We recognize revenue related to software licenses upon delivery of the license, as we consider the license to be satisfied at a point in time. Software is considered delivered when control passes to the customer following the user-acceptance testing period. We recognize revenue related to maintenance ratably over the maintenance period, as we stand ready to provide maintenance services during the period. We recognize revenue related to other software-related services over time using an input model based on hours incurred to provide the services, which directly correspond with the value to which the customer is entitled. We charge a recurring subscription fee for the software license and related maintenance services. Other software-related services are billed on a periodic basis as the services are provided. Certain arrangements for software and related services contain a provision for a fixed upfront payment, which represents an upfront payment for the license and an advance payment for future services. The standalone selling price of maintenance varies in proportion with the standalone selling price of the underlying license. We allocate upfront payments and any other combined fee between the license and maintenance based upon the standalone selling price. The portion of any upfront payment relating to the license is recognized upon delivery of the license (and deferred until that point in time). The portion of any upfront payment relating to future services is accounted for as deferred revenue and is recognized as the future services are provided. Non-maintenance software-related services fees are recognized over the period during which the services are provided, as we consider these services to be satisfied over time. We had deferred revenues of $6,887 and $2,553 as of March 31, 2022 and December 31, 2021, respectively, which are presented within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets. During the three months ended March 31, 2022, we recognized revenue of $785 associated with deferred revenues within noninterest income—technology products and solutions in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2021, we recognized revenue of $156 associated with deferred revenues. Sales commissions: Capitalized sales commissions presented within other assets in the unaudited condensed consolidated balance sheets, which are incurred in connection with obtaining our technology products and solutions, were $850 and $678 as of March 31, 2022 and December 31, 2021, respectively. Additionally, we incur ongoing monthly commissions, which are expensed as incurred, as the benefit of such sales efforts are realized only in the period in which the commissions are earned. During the three months ended March 31, 2022 and 2021, commissions recorded within noninterest expense—sales and marketing in the unaudited condensed consolidated statements of operations and comprehensive income (loss) were $1,121 and $809, respectively, of which $82 and $64, respectively, represented amortization of capitalized sales commissions. Referrals We earn specified referral fees in connection with referral activities we facilitate through our platform. This arrangement contains variable consideration that is constrained due to the potential reversal of referral fulfillment fees. We recognize a liability within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets for the estimated referral fulfillment fee penalty, which represents the amount of consideration received that we estimate will reverse. The liability was $293 and $118 as of March 31, 2022 and December 31, 2021, respectively. Contract Balances As of March 31, 2022 and December 31, 2021, accounts receivable, net associated with revenue from contracts with customers were $53,103 and $33,748, respectively, which were reported within other assets in the unaudited condensed consolidated balance sheets. The increase in contract balances during the current quarter includes the effect of the Technisys Merger, which contributed $17,390 to the balance as of March 31, 2022. |
Recently Adopted Accounting Standards and Recent Accounting Standards Issued, But Not Yet Adopted | Recently Adopted Accounting Standards In October 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, rather than at fair value. The standard should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We early adopted the standard effective January 1, 2022 and applied its provisions to our current quarter acquisitions. The adoption of this standard did not have a material impact on our consolidated financial statements. Recent Accounting Standards Issued, But Not Yet Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The ASU addresses two topics: (i) TDR by creditors, and (ii) vintage disclosures for gross write offs. Under the TDR provisions, the ASU eliminates the recognition and measurement guidance under ASC 310-40, Receivables — Troubled Debt Restructurings by Creditors, and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan, consistent with the accounting for other loan modifications. Additionally, the ASU enhances existing disclosure requirements around TDRs and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Under the vintage disclosure provisions, the ASU requires the entity to disclose current period gross write offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20, Financial Instruments — Credit Losses — Measured at Amortized Cost . The standard is effective for fiscal years and interim periods beginning after December 15, 2022. Early adoption is permitted. If an entity elects to early adopt this standard in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt either of the two topics separately, or both. The standard should be applied prospectively; however, for the TDR provisions, an entity has the option to apply a modified retrospective transition method. We are currently evaluating the effect of adopting this standard on our consolidated financial statements and related disclosures. In March 2022, the SEC released Staff Accounting Bulletin No. 121 (“SAB 121”), which provides interpretive guidance for an entity to consider when it has obligations to safeguard crypto-assets held for its platform users, whether directly or through an agent or another third party acting on its behalf, and regardless of its assessment as to who controls the crypto-assets. SAB 121 requires an entity to record a liability to reflect its obligation to safeguard the crypto-assets, as well as a corresponding asset, both of which should be measured at the fair value of the crypto-assets held for the entity’s users. Entities should evaluate any potential loss events, such as theft, loss or destruction of the cryptographic keys, that may affect the measurement of the asset. SAB 121 also requires financial statement disclosure, including the nature and amount of crypto-assets that the entity holds for its users, any vulnerabilities that may arise as a result of any concentration in crypto-assets, and information about who is responsible for the record-keeping of the crypto-assets, the holding of the cryptographic keys and safeguarding the crypto-assets, among other disclosure considerations. Disclosures must also be made in accordance with ASC 820, Fair Value Measurement (“ASC 820”). SAB 121 is effective for SEC registrants for the first interim or annual financial statements ending after June 15, 2022, with retrospective application as of the beginning of the fiscal year to which the interim or annual period relates. We are currently evaluating the approach to, and effect of, adopting SAB 121 on our consolidated financial statements and related disclosures. |
Organization, Consolidation a_2
Organization, Consolidation and Presentation of Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Gain Loss from Derivative Instruments | The following table presents the gains (losses) recognized on our derivative instruments during the periods indicated: Three Months Ended March 31, 2022 2021 Derivative contracts to manage future loan sale execution risk (1) $ 160,607 $ 36,071 Derivative contracts to manage securitization investment interest rate risk (1)(2) 6,319 — IRLCs (1) (6,798) (8,502) Interest rate caps (1) (2,124) — Purchase price earn-out (1) 831 — Third-party warrants (3) 75 — Total $ 158,910 $ 27,569 _____________________ (1) Recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). (2) Represents derivative instruments utilized to manage interest rate risk associated with certain of our securitization investments. (3) For the three months ended March 31, 2022, includes $(142) recorded within noninterest income—other and $217 recorded within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss), the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired of $964, as we are also a customer of the third party. The following table presents information about derivative instruments subject to enforceable master netting arrangements as of the dates indicated: March 31, 2022 December 31, 2021 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Interest rate swaps $ — $ (7,985) $ 5,444 $ — Interest rate caps — (2,792) — (668) Home loan pipeline hedges 9,684 (150) 117 (313) Total, gross $ 9,684 $ (10,927) $ 5,561 $ (981) Less: derivative netting (2,942) 2,942 (117) 117 Total, net (1) $ 6,742 $ (7,985) $ 5,444 $ (864) _____________________ (1) As of March 31, 2022 and December 31, 2021, we had a cash collateral requirement of $7,985 and $299, respectively, related to these instruments. |
Schedule of Derivative Notional Amounts Outstanding | The following table presents the notional amounts of derivative contracts outstanding as of the dates indicated: March 31, 2022 December 31, 2021 Derivative contracts to manage future loan sale execution risk: Interest rate swaps $ 4,885,000 $ 4,210,000 Home loan pipeline hedges 457,000 421,000 Interest rate caps 405,000 405,000 Interest rate swaps (1) 310,000 — IRLCs (2) 465,491 357,529 Interest rate caps (3) 405,000 405,000 Total $ 6,927,491 $ 5,798,529 _____________________ (1) Represents interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments. (2) Amounts correspond with home loan funding commitments subject to IRLC agreements. (3) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk. While the notional amounts of derivative instruments give an indication of the volume of our derivative activity, they do not necessarily represent amounts exchanged by parties and are not a direct measure of our financial exposure. |
Schedule of Revenues | The table below presents revenue from contracts with customers disaggregated by type of service, which best depicts how the revenue and cash flows are affected by economic factors, and by the reportable segment to which each revenue stream relates. Revenues from contracts with customers are presented within noninterest income—technology products and solutions and noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). There were no revenues from contracts with customers attributable to our Lending segment for any of the periods presented. Three Months Ended March 31, 2022 2021 Financial Services Referrals $ 7,768 $ 2,254 Brokerage 4,730 4,612 Payment network 4,286 1,202 Enterprise services 203 58 Total $ 16,987 $ 8,126 Technology Platform Technology services $ 59,157 $ 45,659 Software licenses 700 — Payment network 178 442 Total $ 60,035 $ 46,101 Total Revenue from Contracts with Customers Technology services $ 59,157 $ 45,659 Software licenses 700 — Referrals 7,768 2,254 Brokerage 4,730 4,612 Payment network 4,464 1,644 Enterprise services 203 58 Total $ 77,022 $ 54,227 |
Schedule of Interest-Bearing Deposits | The following table presents a detail of interest-bearing deposits as of the date indicated: March 31, 2022 Interest-bearing deposits: Demand deposits (1) $ 753,134 Savings deposits (1) 293,003 Time deposits 14,187 Total interest-bearing deposits $ 1,060,324 _____________________ (1) For deposit liabilities with no defined maturities, the fair value of the liabilities reflects the amount payable on demand at the reporting date. |
Schedule of Future Maturities of Time Deposits | As of March 31, 2022, future maturities of our total time deposits were as follows: Remainder of 2022 $ 10,206 2023 2,774 2024 794 2025 30 2026 281 Thereafter 102 Total $ 14,187 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Consideration | The following table presents the components of the purchase consideration to acquire Technisys: Fair value of common stock issued (1) $ 875,042 Fair value of awards assumed (2) 2,855 Amounts payable to settle vested employee performance awards (3) 37,297 Settlement of pre-combination transactions between acquirer and acquiree 235 Total purchase consideration $ 915,429 ___________________ (1) Reflects the shares of SoFi common stock issued upon closing the acquisition of 81,856,112, inclusive of 6,903,663 shares held in escrow, multiplied by the closing stock price of SoFi common stock on the closing date of the Technisys Merger. As of March 31, 2022, the purchase price allocation process for Technisys was not finalized, as further discussed below. (2) We contemporaneously converted outstanding performance awards into restricted stock units (“RSUs”) to acquire common stock of SoFi (“Replacement Awards”). The fair value of awards assumed in the purchase consideration was based on the closing stock price of SoFi common stock on the closing date of the Technisys Merger. (3) We made payments of $2,868 related to this component of purchase consideration through March 31, 2022. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents the allocation of the preliminary total purchase consideration to the estimated fair values of the identified assets acquired and liabilities assumed of Technisys as of the date of acquisition, as well as a reconciliation to the total consideration transferred: Assets acquired Cash and cash equivalents $ 25,710 Accounts receivable (1) 15,354 Intangible assets (2) 239,000 Operating lease right-of-use (“ROU”) assets 587 Other assets 1,011 Total identifiable assets acquired 281,662 Liabilities assumed Accounts payable, accruals and other liabilities 16,462 Operating lease liabilities 587 Deferred income taxes (3) 55,104 Total liabilities assumed 72,153 Total identified net assets acquired 209,509 Goodwill (4) 705,920 Total consideration $ 915,429 _________________ (1) Includes accounts receivable and unbilled revenue with a gross contractual amount of $17,710. At the date of acquisition, the Company expected $2,356 to be uncollectible. (2) Intangible assets consist of finite-lived intangible assets, as follows: Gross carrying amount Weighted-average useful life (years) Developed technology (a) $ 187,000 8.8 Customer-related (b) 42,000 4.8 Trade names, trademarks and domain names (c) 10,000 8.8 __________________ (a) Valued using the Multi-Period Excess Earnings Method (“MPEEM”), which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset (and include an assumed technology migration curve), contributory asset charges and the applicable tax rate, and (ii) an assumed discount rate, which reflects the risk of the asset relative to the overall risk of Technisys. (b) Valued using the With and Without Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual revenues and net cash flows both with the existing customer base and without the existing customer base, which include assumptions regarding revenue ramp-up periods and attrition rates, and (ii) an assumed discount rate, consistent with (a) above. (c) Valued using the Relief from Royalty Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset, the probability of use of the asset, the royalty rate and the applicable tax rate, and (ii) the discount rate, consistent with (a) above. (3) The deferred tax liabilities recognized in the acquisition were primarily related to the acquired intangible assets recognized at a fair value of $239.0 million, in which the acquiree had a significantly lower tax basis. (4) The excess of the total purchase consideration over the fair value of the identified net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. The goodwill is subject to change based on the outcome of the net working capital calculation referenced earlier in this footnote. Goodwill is primarily attributable to expected growth opportunities at Technisys, and secondarily attributable to the expected synergies from leveraging the Technisys technology to enhance and expand Galileo’s product offerings and operations, as well as expand its market reach. As such, all of the goodwill is allocated to the Technology Platform segment. |
Schedule of Finite-Lived Intangible Assets Acquired | Intangible assets consist of finite-lived intangible assets, as follows: Gross carrying amount Weighted-average useful life (years) Developed technology (a) $ 187,000 8.8 Customer-related (b) 42,000 4.8 Trade names, trademarks and domain names (c) 10,000 8.8 __________________ (a) Valued using the Multi-Period Excess Earnings Method (“MPEEM”), which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset (and include an assumed technology migration curve), contributory asset charges and the applicable tax rate, and (ii) an assumed discount rate, which reflects the risk of the asset relative to the overall risk of Technisys. (b) Valued using the With and Without Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual revenues and net cash flows both with the existing customer base and without the existing customer base, which include assumptions regarding revenue ramp-up periods and attrition rates, and (ii) an assumed discount rate, consistent with (a) above. (c) Valued using the Relief from Royalty Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset, the probability of use of the asset, the royalty rate and the applicable tax rate, and (ii) the discount rate, consistent with (a) above. |
Schedule of Pro Forma Information | The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations for the three months ended March 31, 2022 and 2021 as if the business combination had occurred on January 1, 2021: Three Months Ended March 31, 2022 2021 Total net revenue $ 342,109 $ 208,943 Net loss (103,983) (201,317) |
Schedule of Goodwill | A rollforward of our goodwill balance is presented below as of the date indicated: March 31, 2022 Beginning balance $ 898,527 Less: accumulated impairment — Beginning balance, net 898,527 Additional goodwill recognized (1) 717,167 Ending balance (2) $ 1,615,694 _____________________ (1) The additional goodwill recognized as of March 31, 2022 includes $705,920 related to the Technisys Merger and $11,247 related to the Bank Merger. (2) As of March 31, 2022, we had goodwill attributable to the following reportable segments: $1,578,535 to Technology Platform and $37,159 to Financial Services. |
Investments in AFS Debt Secur_2
Investments in AFS Debt Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments in Debt Securities | The following table presents our investments in AFS debt securities as of the dates indicated. March 31, 2022 Amortized Cost (1) Accrued Interest Gross Unrealized Gains Gross Unrealized Losses (2) Fair Value Investments in AFS debt securities (3) : U.S. Treasury securities $ 119,450 $ 181 $ — $ (2,597) $ 117,034 Multinational securities (4) 19,849 74 — (594) 19,329 Corporate bonds 43,081 239 — (1,883) 41,437 Agency mortgage-backed securities 10,393 26 — (281) 10,138 Other asset-backed securities 9,596 5 — (366) 9,235 Other (5) 2,745 10 — (88) 2,667 Total investments in AFS debt securities $ 205,114 $ 535 $ — $ (5,809) $ 199,840 December 31, 2021 Amortized Cost Accrued Interest Gross Unrealized Gains Gross Unrealized Losses (2) Fair Value Investments in AFS debt securities (3) : U.S. Treasury securities $ 103,014 $ 73 $ — $ (584) $ 102,503 Multinational securities (4) 19,911 109 — (154) 19,866 Corporate bonds 39,894 235 — (480) 39,649 Agency TBA (6) 7,457 13 4 (8) 7,466 Agency mortgage-backed securities 4,153 14 — (31) 4,136 Other asset-backed securities 9,610 5 — (91) 9,524 Commercial paper 9,939 — — — 9,939 Other (5) 1,818 13 — (7) 1,824 Total investments in AFS debt securities $ 195,796 $ 462 $ 4 $ (1,355) $ 194,907 _____________________ (1) Amortized cost basis reflects the amortization of premiums of $291 during the three months ended March 31, 2022. (2) As of March 31, 2022 and December 31, 2021, we determined that our unrealized loss positions related to credit losses were immaterial. Additionally, we do not intend to sell the securities in loss positions nor is it more likely than not that we will be required to sell the securities prior to recovery of the amortized cost basis. Further, no such investments have been in a continuous unrealized loss position for more than 12 months. (3) Investments in AFS debt securities are recorded at fair value. (4) Includes sovereign foreign and supranational bonds. (5) Includes state and city municipal bond securities. (6) Represented to-be-announced (“TBA”) securities, which were securities that were delivered under the purchase contract at a later date when the underlying security was issued. The December 31, 2021 balance was paid in cash during 2022. |
Schedule of Investments by Contractual Maturity | The following table presents the amortized cost and fair value of our investments in AFS debt securities by contractual maturity as of the date indicated: Due Within One Year Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Total March 31, 2022 Investments in AFS debt securities—Amortized cost: U.S. Treasury securities $ 25,336 $ 94,114 $ — $ — $ 119,450 Multinational securities — 19,849 — — 19,849 Corporate bonds — 39,716 3,365 — 43,081 Agency mortgage-backed securities 3 20 824 9,546 10,393 Other asset-backed securities — 7,600 1,996 — 9,596 Other 600 1,212 — 933 2,745 Total investments in AFS debt securities $ 25,939 $ 162,511 $ 6,185 $ 10,479 $ 205,114 Weighted average yield for investments in AFS debt securities (1) (3.68) % (8.77) % (10.94) % (10.29) % (8.27) % Investments in AFS debt securities—Fair value (2) : U.S. Treasury securities $ 24,974 $ 91,879 $ — $ — $ 116,853 Multinational securities — 19,255 — — 19,255 Corporate bonds — 37,952 3,246 — 41,198 Agency mortgage-backed securities 3 20 801 9,288 10,112 Other asset-backed securities — 7,309 1,921 — 9,230 Other 597 1,186 — 874 2,657 Total investments in AFS debt securities $ 25,574 $ 157,601 $ 5,968 $ 10,162 $ 199,305 _____________________ (1) The weighted average yield represents the effective yield for the investment securities and is computed based on the amortized cost of each security as of March 31, 2022. (2) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $535 as of March 31, 2022. |
Schedule of Proceeds and Gross Realized Gains and Losses | The following table presents the gross proceeds and gross realized gains and losses from sales, maturities and paydowns of our investments in AFS debt securities during the three months ended March 31, 2022. Realized gains and losses are presented within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). There were no transfers between classifications of our investments in AFS debt securities during the period presented. Three Months Ended Investments in AFS debt securities Gross realized gains included in earnings $ — Gross realized losses included in earnings (161) Net realized losses (161) Gross proceeds from sales, maturities and paydowns (1) $ 29,615 _____________________ |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, as of the dates indicated: March 31, December 31, 2022 2021 Loans at fair value Securitized student loans $ 513,378 $ 574,328 Securitized personal loans 177,179 234,576 Student loans 3,224,061 2,876,509 Home loans 146,658 212,709 Personal loans 2,941,609 2,054,850 Total loans at fair value 7,002,885 5,952,972 Loans at amortized cost (1) Credit card 139,388 115,912 Commercial and consumer banking: Commercial real estate 67,627 — Commercial and industrial 8,760 — Residential real estate and other consumer 3,341 — Total commercial and consumer banking 79,728 — Total loans at amortized cost 219,116 115,912 Total loans $ 7,222,001 $ 6,068,884 _____________________ (1) See Note 1 for additional information on our loans at amortized cost as it pertains to the allowance for credit losses pursuant to ASC 326. The following table summarizes the aggregate fair value of our loans measured at fair value on a recurring basis as of the dates indicated: Student Loans Home Loans Personal Loans Total March 31, 2022 Unpaid principal (1) $ 3,683,512 $ 153,222 $ 3,006,363 $ 6,843,097 Accumulated interest 9,740 182 17,893 27,815 Cumulative fair value adjustments (1) 44,187 (6,746) 94,532 131,973 Total fair value of loans $ 3,737,439 $ 146,658 $ 3,118,788 $ 7,002,885 December 31, 2021 Unpaid principal (1) $ 3,356,344 $ 210,111 $ 2,188,773 $ 5,755,228 Accumulated interest 9,990 190 12,310 22,490 Cumulative fair value adjustments (1) 84,503 2,408 88,343 175,254 Total fair value of loans $ 3,450,837 $ 212,709 $ 2,289,426 $ 5,952,972 __________________ (1) These items are impacted by charge-offs during the period. The following table summarizes the aggregate fair value of loans 90 days or more delinquent as of the dates indicated. 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. There were no home loans that were 90 days or more delinquent as of the dates presented. Student Loans Personal Loans Total March 31, 2022 Unpaid principal $ 1,959 $ 4,163 $ 6,122 Accumulated interest 26 156 182 Cumulative fair value adjustments (1,160) (3,658) (4,818) Fair value of loans 90 days or more delinquent $ 825 $ 661 $ 1,486 December 31, 2021 Unpaid principal $ 1,589 $ 4,765 $ 6,354 Accumulated interest 32 149 181 Cumulative fair value adjustments (865) (4,189) (5,054) Fair value of loans 90 days or more delinquent $ 756 $ 725 $ 1,481 |
Schedule of Loans Measured at Fair Value | The following table presents the changes in our loans measured at fair value on a recurring basis: Student Loans Home Loans Personal Loans Total Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 3,450,837 $ 212,709 $ 2,289,426 $ 5,952,972 Origination of loans 983,804 312,383 2,026,004 3,322,191 Principal payments (227,115) (4,400) (372,454) (603,969) Sales of loans (544,150) (365,370) (977,920) (1,887,440) Purchases (1) 116,433 498 160,748 277,679 Change in accumulated interest (250) (8) 5,583 5,325 Change in fair value (2) (42,120) (9,154) (12,599) (63,873) Fair value as of March 31, 2022 $ 3,737,439 $ 146,658 $ 3,118,788 $ 7,002,885 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 2,866,459 $ 179,689 $ 1,812,920 $ 4,859,068 Origination of loans 1,004,685 735,604 805,689 2,545,978 Principal payments (250,219) (1,479) (258,199) (509,897) Sales of loans (936,160) (677,566) (779,441) (2,393,167) Purchases (1) 71 119 1,001 1,191 Change in accumulated interest (1,249) (35) (2,187) (3,471) Change in fair value (2) (16,794) (4,429) (5,875) (27,098) Fair value as of March 31, 2021 $ 2,666,793 $ 231,903 $ 1,573,908 $ 4,472,604 __________________ (1) Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three months ended March 31, 2022 included securitization clean-up calls (purchases we elect to make when the risk retention period has sunset) of $275,499. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. (2) Changes in fair value of loans are recorded in the unaudited condensed consolidated statements of operations and comprehensive income (loss) within noninterest income—loan origination and sales for loans held on the balance sheet prior to transfer to a third party through a sale or to a VIE and within noninterest income—securitizations for loans in a consolidated VIE. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains included in earnings attributable to changes in instrument-specific credit risk were $6,496 and $6,926 during the three months ended March 31, 2022 and 2021, respectively. The gains attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument. The following table presents the changes in the residual investments and residual interests classified as debt, which are both measured at fair value on a recurring basis. We record changes in fair value within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively. Residual Investments Residual Interests Classified as Debt Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 121,019 $ 93,682 Change in valuation inputs or other assumptions (1) 762 2,963 Payments (15,104) (26,113) Fair value as of March 31, 2022 $ 106,677 $ 70,532 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 139,524 $ 118,298 Additions 26,381 — Change in valuation inputs or other assumptions (1) 3,497 7,951 Payments (18,441) (11,367) Fair value as of March 31, 2021 $ 150,961 $ 114,882 ___________________ (1) For residual investments, the estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. The following table presents the changes in our IRLCs and student loan commitments, which are measured at fair value on a recurring basis. Changes in the fair values of IRLCs and student loan commitments are recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). IRLCs Student Loan Commitments Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 3,759 $ 2,220 Revaluation adjustments (3,039) 23 Funded loans (1) (2,201) (2,121) Unfunded loans (1) (1,558) (99) Fair value as of March 31, 2022 $ (3,039) $ 23 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 15,620 $ — Revaluation adjustments 7,118 — Funded loans (1) (10,210) — Unfunded loans (1) (5,410) — Fair value as of March 31, 2021 $ 7,118 $ — ___________________ (1) For each quarter presented, funded and unfunded loan fair value adjustments represent the unpaid principal balance of funded and unfunded loans, respectively, during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. The following table presents the changes in our purchase price earn-out, which is measured at fair value on a recurring basis. Changes in the fair value are recorded within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Changes during the three months ended March 31, 2021 were immaterial. Purchase Price Earn-Out Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 4,272 Payments (2,817) Changes in valuation inputs or assumptions (1) 830 Fair value as of March 31, 2022 $ 2,285 ___________________ (1) The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the three months ended March 31, 2022. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the purchase price earn-out. These assumptions are based on historical performance and performance expectations over the term of the underlying instrument. |
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 as of the dates indicated: Delinquent Loans Current 30–59 Days 60–89 Days ≥ 90 Days (1) Total Delinquent Loans Total Loans (2) March 31, 2022 Credit card $ 143,161 $ 3,330 $ 2,625 $ 4,714 $ 10,669 $ 153,830 Commercial and consumer banking: Commercial real estate 68,385 — — — — 68,385 Commercial and industrial 8,946 129 — — 129 9,075 Residential real estate and other consumer (3) 3,343 — — — — 3,343 Total commercial and consumer banking 80,674 129 — — 129 80,803 Total loans $ 223,835 $ 3,459 $ 2,625 $ 4,714 $ 10,798 $ 234,633 December 31, 2021 Credit card $ 115,356 $ 1,893 $ 1,683 $ 2,658 $ 6,234 $ 121,590 _______________ (1) All of the credit card loans ≥ 90 days past due continued to accrue interest. As of March 31, 2022 and December 31, 2021, there were no credit card loans on nonaccrual status. As of March 31, 2022, commercial and consumer banking loans on nonaccrual status were immaterial, and there were no loans that were 90 days or more past due. (2) For credit card, the balance is presented before allowance for credit losses of $16,500 and $7,037 as of March 31, 2022 and December 31, 2021, respectively, and accrued interest of $2,058 and $1,359, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,366 and accrued interest of $289 as of March 31, 2022. (3) Includes residential real estate loans acquired in the Bank Merger, for which we did not elect the fair value option for this portfolio of loans. |
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) as of the dates indicated based on FICO scores, which are obtained at the origination of the account, and are updated as new credit information is available. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data. FICO March 31, 2022 December 31, 2021 ≥ 800 $ 7,532 $ 10,016 780 – 799 6,429 8,624 760 – 779 7,968 9,976 740 – 759 9,744 13,581 720 – 739 13,487 18,358 700 – 719 18,763 22,579 680 – 699 22,127 21,736 660 – 679 21,369 14,044 640 – 659 16,352 1,969 < 640 30,059 707 Total credit card $ 153,830 $ 121,590 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 as of March 31, 2022. Term Loans by Origination Year 2022 2021 2020 2019 2018 Prior Total Term Loans Revolving Loans Commercial real estate Pass $ 2,856 $ 5,827 $ 8,153 $ 12,437 $ 6,994 $ 17,638 $ 53,905 $ 208 Watch — 1,708 — 2,807 1,143 4,082 9,740 — Special mention — — — 689 2,269 416 3,374 — Substandard — — — — 81 1,077 1,158 — Total commercial real estate $ 2,856 $ 7,535 $ 8,153 $ 15,933 $ 10,487 $ 23,213 $ 68,177 $ 208 Commercial and industrial Pass $ — $ 259 $ 120 $ — $ 115 $ 5,313 $ 5,807 $ 399 Watch — — — — — 296 296 30 Special mention — — — — — 763 763 — Substandard — — — — 553 1,102 1,655 125 Total commercial and industrial $ — $ 259 $ 120 $ — $ 668 $ 7,474 $ 8,521 $ 554 Residential real estate and other consumer Pass $ — $ — $ — $ — $ — $ 3,234 $ 3,234 $ 65 Watch — — — — — 44 44 — Total residential real estate and other consumer $ — $ — $ — $ — $ — $ 3,278 $ 3,278 $ 65 Total commercial and consumer banking $ 2,856 $ 7,794 $ 8,273 $ 15,933 $ 11,155 $ 33,965 $ 79,976 $ 827 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Consolidated and Nonconsolidated VIEs | The following table presents the assets and liabilities of consolidated VIEs that were included in our unaudited condensed consolidated balance sheets. The assets in the below table may only be used to settle obligations of consolidated VIEs and were in excess of those obligations as of the dates presented. Additionally, the assets and liabilities in the table below exclude intercompany balances, which eliminate upon consolidation. March 31, December 31, 2022 2021 Assets: Restricted cash and restricted cash equivalents $ 40,906 $ 53,161 Loans 690,557 808,904 Total assets $ 731,463 $ 862,065 Liabilities: Accounts payable, accruals and other liabilities $ 344 $ 388 Debt (1) 576,897 660,419 Residual interests classified as debt 70,532 93,682 Total liabilities $ 647,773 $ 754,489 ___________________ (1) Debt is presented net of debt issuance costs and debt premiums (discounts). The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs as of the dates indicated. March 31, December 31, 2022 2021 Personal loans $ 52,230 $ 62,925 Student loans 273,140 311,763 Securitization investments $ 325,370 $ 374,688 |
Transfers of Financial Assets (
Transfers of Financial Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Loan Securitization Transfers, Whole Loan Sales and Participating Interests | The following table summarizes our student loan securitization transfers qualifying for sale accounting treatment for the three months ended March 31, 2021. There were no loan securitization transfers qualifying for sale accounting treatment during the three months ended March 31, 2022. Three Months Ended March 31, 2021 Student loans Fair value of consideration received: Cash $ 500,041 Securitization investments 26,381 Servicing assets recognized 28,731 Total consideration 555,153 Aggregate unpaid principal balance and accrued interest of loans sold 526,126 Gain from loan sales $ 29,027 The following table summarizes our whole loan sales during the periods indicated: Three Months Ended March 31, 2022 2021 Student loans Fair value of consideration received: Cash $ 548,911 $ 422,341 Servicing assets recognized 5,824 4,858 Repurchase liabilities recognized (80) (79) Total consideration 554,655 427,120 Aggregate unpaid principal balance and accrued interest of loans sold 546,287 413,090 Gain from loan sales $ 8,368 $ 14,030 Home loans Fair value of consideration received: Cash $ 359,700 $ 696,197 Servicing assets recognized 4,238 6,539 Repurchase liabilities recognized (420) (939) Total consideration 363,518 701,797 Aggregate unpaid principal balance and accrued interest of loans sold 365,560 677,569 Gain (loss) from loan sales $ (2,042) $ 24,228 Personal loans Fair value of consideration received: Cash $ 1,018,689 $ 811,252 Servicing assets recognized 6,424 6,003 Repurchase liabilities recognized (2,298) (2,084) Total consideration received 1,022,815 815,171 Aggregate unpaid principal balance and accrued interest of loans sold 981,855 782,529 Gain from loan sales $ 40,960 $ 32,642 |
Schedule of Transferred Loans with Continued Involvement but Not Recorded on Consolidated Balance Sheet and Cash Flows Received | The following table presents information as of the dates indicated about the unpaid principal balances of transferred loans that are not recorded in our unaudited condensed consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements: Student Loans Home Loans Personal Loans Total March 31, 2022 Loans in repayment $ 9,302,518 $ 4,805,945 $ 5,075,573 $ 19,184,036 Loans in-school/grace/deferment 31,450 — — 31,450 Loans in forbearance 45,096 13,554 753 59,403 Loans in delinquency 93,259 9,445 79,590 182,294 Total loans serviced $ 9,472,323 $ 4,828,944 $ 5,155,916 $ 19,457,183 December 31, 2021 Loans in repayment $ 9,852,957 $ 4,575,001 $ 5,138,299 $ 19,566,257 Loans in-school/grace/deferment 37,949 — — 37,949 Loans in forbearance 44,833 40,353 1,120 86,306 Loans in delinquency 112,885 7,465 75,275 195,625 Total loans serviced $ 10,048,624 $ 4,622,819 $ 5,214,694 $ 19,886,137 The following table presents additional information during the periods indicated about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement: Three Months Ended March 31, 2022 2021 Student loans Servicing fees collected $ 9,168 $ 9,025 Charge-offs, net of recoveries (1) 8,220 3,053 Home Loans Servicing fees collected $ 2,636 $ 1,613 Charge-offs, net of recoveries — — Personal Loans Servicing fees collected $ 8,637 $ 9,490 Charge-offs, net of recoveries (1) 17,138 37,817 Total Servicing fees collected $ 20,441 $ 20,128 Charge-offs, net of recoveries 25,358 40,870 _____________________ (1) Student loan and personal 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. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Allowance for Credit Losses, Accounts Receivable | The following table summarizes the activity in the balances of allowance for credit losses during the periods indicated. Accounts Receivable (1) Credit Card (1) Commercial and Consumer Banking (1) Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 2,292 $ 7,037 $ — Provision for credit losses (2) (591) 11,977 984 Allowance for PCD loans (3) — — 382 Write-offs charged against the allowance (4) (49) (2,514) — Balance at March 31, 2022 $ 1,652 $ 16,500 $ 1,366 Three Months Ended March 31, 2021 Balance at December 31, 2020 $ 562 $ 219 $ — Provision for credit losses (2) 1,135 — — Write-offs charged against the allowance (778) (48) — Balance at March 31, 2021 $ 919 $ 171 $ — _____________________ (1) Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the unaudited condensed consolidated balance sheets. Credit card and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans in the unaudited condensed consolidated balance sheets. (2) The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2022 and 2021, recoveries of amounts previously reserved related to accounts receivable were $1,392 and $547, respectively. The provision for credit losses on credit card and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses. There were no recoveries of credit card losses during the three months ended March 31, 2022 and 2021 and immaterial recoveries on the commercial and consumer banking portfolio through March 31, 2022. (3) We measured a PCD allowance for the loans acquired in the Bank Merger upon acquisition, which resulted in a gross-up to the allowance for credit losses, but had no impact on earnings. (4) The increase in credit card write-offs charged against the allowance during the three months ended March 31, 2022 was commensurate with our increased loan portfolio combined with increased loss rates. |
Schedule of Allowance for Credit Losses, Credit Card Loans | The following table summarizes the activity in the balances of allowance for credit losses during the periods indicated. Accounts Receivable (1) Credit Card (1) Commercial and Consumer Banking (1) Three Months Ended March 31, 2022 Balance at December 31, 2021 $ 2,292 $ 7,037 $ — Provision for credit losses (2) (591) 11,977 984 Allowance for PCD loans (3) — — 382 Write-offs charged against the allowance (4) (49) (2,514) — Balance at March 31, 2022 $ 1,652 $ 16,500 $ 1,366 Three Months Ended March 31, 2021 Balance at December 31, 2020 $ 562 $ 219 $ — Provision for credit losses (2) 1,135 — — Write-offs charged against the allowance (778) (48) — Balance at March 31, 2021 $ 919 $ 171 $ — _____________________ (1) Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the unaudited condensed consolidated balance sheets. Credit card and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans in the unaudited condensed consolidated balance sheets. (2) The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three months ended March 31, 2022 and 2021, recoveries of amounts previously reserved related to accounts receivable were $1,392 and $547, respectively. The provision for credit losses on credit card and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses. There were no recoveries of credit card losses during the three months ended March 31, 2022 and 2021 and immaterial recoveries on the commercial and consumer banking portfolio through March 31, 2022. (3) We measured a PCD allowance for the loans acquired in the Bank Merger upon acquisition, which resulted in a gross-up to the allowance for credit losses, but had no impact on earnings. (4) The increase in credit card write-offs charged against the allowance during the three months ended March 31, 2022 was commensurate with our increased loan portfolio combined with increased loss rates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring and Nonrecurring Basis | The following tables summarize, by level within the fair value hierarchy, the carrying amounts and estimated fair values of our assets and liabilities (i) measured at fair value on a recurring basis, (ii) measured at fair value on a nonrecurring basis, or (iii) disclosed but not carried at fair value in the unaudited condensed consolidated balance sheets as of the dates presented. March 31, 2022 Fair Value Carrying Value Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 1,325,135 $ 1,325,135 $ — $ — $ 1,325,135 Restricted cash and restricted cash equivalents (1) 377,077 377,077 — — 377,077 Investments in AFS debt securities (2)(4) 199,840 136,363 63,477 — 199,840 Loans at fair value (2) 7,002,885 — — 7,002,885 7,002,885 Loans at amortized cost (1) 219,116 — — 227,917 227,917 Servicing rights (2) 173,505 — — 173,505 173,505 Asset-backed bonds (2)(5) 218,693 — 218,693 — 218,693 Residual investments (2)(5) 106,677 — — 106,677 106,677 Non-securitization investments – ETFs (2)(6) 1,419 1,419 — — 1,419 Non-securitization investments – other (3) 25,176 — — 25,176 25,176 Third party warrants (2)(7) 1,227 — — 1,227 1,227 Derivative assets (2)(8)(9) 9,684 9,684 — — 9,684 Purchase price earn-out (2)(10) 2,285 — — 2,285 2,285 Student loan commitments (2)(11) 23 — — 23 23 Interest rate caps (2)(9) 3,116 — 3,116 — 3,116 Total assets $ 9,665,858 $ 1,849,678 $ 285,286 $ 7,539,695 $ 9,674,659 Liabilities Deposits (1) $ 14,187 $ — $ 14,145 $ — $ 14,145 Debt (1) 4,916,175 968,280 3,759,066 — 4,727,346 Residual interests classified as debt (2) 70,532 — — 70,532 70,532 Derivative liabilities (2)(8)(9) 10,927 150 10,777 — 10,927 Interest rate lock commitments (2)(11) 3,039 — — 3,039 3,039 Total liabilities $ 5,014,860 $ 968,430 $ 3,783,988 $ 73,571 $ 4,825,989 December 31, 2021 Fair Value Carrying Value Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents (1) $ 494,711 $ 494,711 $ — $ — $ 494,711 Restricted cash and restricted cash equivalents (1) 273,726 273,726 — — 273,726 Investments in AFS debt securities (2)(4) 194,907 129,835 65,072 — 194,907 Loans at fair value (2) 5,952,972 — — 5,952,972 5,952,972 Loans at amortized cost (1) 115,912 — — 118,412 118,412 Servicing rights (2) 168,259 — — 168,259 168,259 Asset-backed bonds (2)(5) 253,669 — 253,669 — 253,669 Residual investments (2)(5) 121,019 — — 121,019 121,019 Non-securitization investments – ETFs (2)(6) 1,486 1,486 — — 1,486 Non-securitization investments – other (3) 6,054 — — 6,054 6,054 Third party warrants (2)(7) 1,369 — — 1,369 1,369 Derivative assets (2)(8)(9) 5,444 — 5,444 — 5,444 Purchase price earn-out (2)(10) 4,272 — — 4,272 4,272 Interest rate lock commitments (2)(11) 3,759 — — 3,759 3,759 Student loan commitments (2)(11) 2,220 — — 2,220 2,220 Interest rate caps (2)(9) 493 — 493 — 493 Total assets $ 7,600,272 $ 899,758 $ 324,678 $ 6,378,336 $ 7,602,772 Liabilities Debt (1) $ 3,947,983 $ 1,240,560 $ 2,807,253 $ — $ 4,047,813 Residual interests classified as debt (2) 93,682 — — 93,682 93,682 Derivative liabilities (2)(8)(9) 864 196 668 — 864 Total liabilities $ 4,042,529 $ 1,240,756 $ 2,807,921 $ 93,682 $ 4,142,359 _____________________ (1) Disclosed but not carried at fair value. The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes issued in October 2021 was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt, revolving credit facility debt and credit card loans were based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. The fair value of our commercial and consumer banking loans was determined using a discounted cash flow model with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults. The carrying amounts of our cash and cash equivalents and restricted cash and restricted cash equivalents approximate their fair values due to the short-term maturities and highly liquid nature of these accounts. The fair value of our time-based deposits is estimated by a discounted cash flow method using rates currently offered for deposits of similar remaining maturities. (2) Measured at fair value on a recurring basis. (3) Measured at fair value on a nonrecurring basis. (4) Investments in AFS debt securities as of March 31, 2022 were classified as Level 1 or Level 2. The Level 1 investments utilize quoted prices in actively traded markets. The Level 2 investments rely upon observable inputs other than quoted prices, dealer quotes in markets that are not active and implied pricing derived from new issuances of similar securities. See Note 3 for additional information. (5) These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. As we do not provide financial support beyond our initial equity investment, our maximum exposure to loss as a result of our involvement with nonconsolidated VIEs is limited to the investment amount. See Note 5 for additional information. (6) ETFs classified as Level 1 are based on utilizing quoted prices in actively traded markets. (7) The key unobservable assumption used in the fair value measurement of the third party warrants is the price of the stock underlying the warrants. The fair value is measured as the difference between the stock price and the strike price of the warrants. As the strike price is insignificant, we concluded that the impact of time value on the fair value measure was immaterial. (8) For certain derivative instruments for which an enforceable master netting agreement exists, we elected to net derivative assets and derivative liabilities by counterparty. These instruments are presented on a gross basis herein. See Note 1 for additional information. (9) Derivative liabilities classified as Level 1 are based on broker quotes in active markets and represent economic hedges of either loans or securitization investment fair values. Interest rate swaps and interest rate caps are classified as Level 2, because these financial instruments do not trade in active markets with observable prices, but rely on observable inputs other than quoted prices. Interest rate swaps are valued using the three-month LIBOR swap yield curve and interest rate caps are valued using a Secured Overnight Financing Rate (“SOFR”) curve and the implied volatilities suggested by the SOFR rate curve, which are all observable inputs from active markets. (10) The purchase price earn-out provision is classified as Level 3 because of our reliance on an unobservable inputs, such as conditional prepayment rates, annual default rates and discount rates. (11) IRLCs and student loan commitments are classified as Level 3 because of our reliance on assumed loan funding probabilities. The assumed probabilities are based on our internal historical experience with home loans and student loans similar to those in the funding pipelines on the measurement date. |
Schedule of Valuation Inputs and Assumptions | The following key unobservable assumptions were used in the fair value measurement of our loans as of the dates indicated: March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average Student loans Conditional prepayment rate 16.8% – 26.1% 19.6% 16.5% – 26.3% 19.2% Annual default rate 0.2% – 3.1% 0.4% 0.2% – 4.2% 0.4% Discount rate 3.2% – 7.8% 3.5% 1.9% – 7.1% 2.9% Home loans Conditional prepayment rate 3.9% – 8.2% 7.4% 4.8% – 16.4% 12.4% Annual default rate 0.1% – 0.3% 0.1% 0.1% – 0.2% 0.1% Discount rate 3.8% – 13.0% 3.8% 2.5% – 13.0% 2.6% Personal loans Conditional prepayment rate 16.1% – 42.8% 20.1% 18.4% – 37.7% 20.5% Annual default rate 4.2% – 35.6% 4.4% 4.2% – 30.0% 4.4% Discount rate 5.0% – 7.6% 5.2% 3.9% – 7.0% 4.0% March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 15.2% – 24.8% 19.9% 15.2% – 25.6% 20.4% Annual default rate 0.2% – 4.3% 0.4% 0.2% – 4.3% 0.4% Discount rate 7.3% – 7.3% 7.3% 7.3% – 7.3% 7.3% Home loans Market servicing costs 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Conditional prepayment rate 5.7% – 12.8% 6.1% 10.0% – 16.4% 11.5% Annual default rate 0.1% – 0.1% 0.1% 0.1% – 0.2% 0.1% Discount rate 7.5% – 7.5% 7.5% 7.5% – 7.5% 7.5% Personal loans Market servicing costs 0.2% – 1.3% 0.2% 0.2% – 1.1% 0.2% Conditional prepayment rate 22.6% – 44.6% 25.7% 22.5% – 41.4% 26.0% Annual default rate 3.3% – 7.0% 4.4% 3.2% – 7.0% 4.4% Discount rate 7.3% – 7.3% 7.3% 7.3% – 7.3% 7.3% March 31, 2022 December 31, 2021 Discount rate (range) 1.5% – 4.1% 0.6% – 3.7% Conditional prepayment rate (range) 18.4% – 33.0% 19.5% – 32.2% The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt as of the dates indicated: March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 18.4% – 33.7% 22.7% 19.5% – 33.6% 23.0% Annual default rate 0.3% – 5.6% 0.9% 0.3% – 5.7% 0.9% Discount rate 3.1% – 10.5% 4.8% 2.6% – 10.5% 4.4% Residual interests classified as debt Conditional prepayment rate 19.3% – 44.2% 30.7% 20.0% – 41.8% 31.5% Annual default rate 0.5% – 5.4% 2.8% 0.5% – 5.6% 3.2% Discount rate 5.5% – 9.5% 6.2% 5.0% – 9.5% 5.7% March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 48.0% – 59.0% 58.6% 75.0% – 75.0% 75.0% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% – 95.0% 95.0% ___________________ (1) The probability of honoring IRLCs and student loan commitments, which reflects the percentage likelihood that an approved loan application will close based on historical experience. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. The aggregate amount of student loans we committed to fund was $4,888 as of March 31, 2022. See Note 1 under “Derivative Financial Instruments” for the aggregate notional amount associated with IRLCs. Purchase Price Earn-Out March 31, 2022 December 31, 2021 Conditional prepayment rate 22.7% 22.9% Annual default rate 35.6% 30.0% Discount rate 25.0% 25.0% Three Months Ended Input March 31, 2022 Risk-free interest rate 1.6% Expected volatility 37.7% Fair value of common stock $12.06 Dividend yield 0% |
Schedule of Sensitivity Analysis for Servicing Rights | The following table presents the estimated decrease to the fair value of our servicing rights as of the dates indicated if the key assumptions had each of the below adverse changes: March 31, 2022 December 31, 2021 Market servicing costs 2.5 basis points increase $ (10,651) $ (10,822) 5.0 basis points increase (21,303) (21,644) Conditional prepayment rate 10% increase $ (5,675) $ (6,260) 20% increase (11,200) (12,031) Annual default rate 10% increase $ (206) $ (205) 20% increase (410) (408) Discount rate 100 basis points increase $ (4,698) $ (3,782) 200 basis points increase (9,084) (7,349) |
Schedule of Servicing Rights at Fair Value | The following table presents the changes in the Company’s servicing rights, which are measured at fair value on a recurring basis. Student Loans Home Loans Personal Loans Total Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 90,003 $ 50,533 $ 27,723 $ 168,259 Recognition of servicing from transfers of financial assets 5,824 4,238 6,424 16,486 Servicing rights assumed from third parties — — 629 629 Derecognition of servicing via loan purchases (1,041) — (369) (1,410) Change in valuation inputs or other assumptions 1,292 7,740 2,548 11,580 Realization of expected cash flows and other changes (10,121) (2,926) (8,992) (22,039) Fair value as of March 31, 2022 $ 85,957 $ 59,585 $ 27,963 $ 173,505 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 100,637 $ 23,914 $ 25,046 $ 149,597 Recognition of servicing from transfers of financial assets 33,589 6,539 6,003 46,131 Change in valuation inputs or other assumptions (15,728) 3,329 290 (12,109) Realization of expected cash flows and other changes (12,160) (1,744) (8,475) (22,379) Fair value as of March 31, 2021 $ 106,338 $ 32,038 $ 22,864 $ 161,240 |
Schedule of Changes in Residual Investments, Residual Interests and Interest Rate Lock and Student Loan Commitments | The following table presents the changes in our loans measured at fair value on a recurring basis: Student Loans Home Loans Personal Loans Total Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 3,450,837 $ 212,709 $ 2,289,426 $ 5,952,972 Origination of loans 983,804 312,383 2,026,004 3,322,191 Principal payments (227,115) (4,400) (372,454) (603,969) Sales of loans (544,150) (365,370) (977,920) (1,887,440) Purchases (1) 116,433 498 160,748 277,679 Change in accumulated interest (250) (8) 5,583 5,325 Change in fair value (2) (42,120) (9,154) (12,599) (63,873) Fair value as of March 31, 2022 $ 3,737,439 $ 146,658 $ 3,118,788 $ 7,002,885 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 2,866,459 $ 179,689 $ 1,812,920 $ 4,859,068 Origination of loans 1,004,685 735,604 805,689 2,545,978 Principal payments (250,219) (1,479) (258,199) (509,897) Sales of loans (936,160) (677,566) (779,441) (2,393,167) Purchases (1) 71 119 1,001 1,191 Change in accumulated interest (1,249) (35) (2,187) (3,471) Change in fair value (2) (16,794) (4,429) (5,875) (27,098) Fair value as of March 31, 2021 $ 2,666,793 $ 231,903 $ 1,573,908 $ 4,472,604 __________________ (1) Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three months ended March 31, 2022 included securitization clean-up calls (purchases we elect to make when the risk retention period has sunset) of $275,499. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. (2) Changes in fair value of loans are recorded in the unaudited condensed consolidated statements of operations and comprehensive income (loss) within noninterest income—loan origination and sales for loans held on the balance sheet prior to transfer to a third party through a sale or to a VIE and within noninterest income—securitizations for loans in a consolidated VIE. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of gains included in earnings attributable to changes in instrument-specific credit risk were $6,496 and $6,926 during the three months ended March 31, 2022 and 2021, respectively. The gains attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the loans. These assumptions are based on historical performance, market trends and performance expectations over the term of the underlying instrument. The following table presents the changes in the residual investments and residual interests classified as debt, which are both measured at fair value on a recurring basis. We record changes in fair value within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively. Residual Investments Residual Interests Classified as Debt Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 121,019 $ 93,682 Change in valuation inputs or other assumptions (1) 762 2,963 Payments (15,104) (26,113) Fair value as of March 31, 2022 $ 106,677 $ 70,532 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 139,524 $ 118,298 Additions 26,381 — Change in valuation inputs or other assumptions (1) 3,497 7,951 Payments (18,441) (11,367) Fair value as of March 31, 2021 $ 150,961 $ 114,882 ___________________ (1) For residual investments, the estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. The following table presents the changes in our IRLCs and student loan commitments, which are measured at fair value on a recurring basis. Changes in the fair values of IRLCs and student loan commitments are recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). IRLCs Student Loan Commitments Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 3,759 $ 2,220 Revaluation adjustments (3,039) 23 Funded loans (1) (2,201) (2,121) Unfunded loans (1) (1,558) (99) Fair value as of March 31, 2022 $ (3,039) $ 23 Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 15,620 $ — Revaluation adjustments 7,118 — Funded loans (1) (10,210) — Unfunded loans (1) (5,410) — Fair value as of March 31, 2021 $ 7,118 $ — ___________________ (1) For each quarter presented, funded and unfunded loan fair value adjustments represent the unpaid principal balance of funded and unfunded loans, respectively, during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. The following table presents the changes in our purchase price earn-out, which is measured at fair value on a recurring basis. Changes in the fair value are recorded within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Changes during the three months ended March 31, 2021 were immaterial. Purchase Price Earn-Out Three Months Ended March 31, 2022 Fair value as of January 1, 2022 $ 4,272 Payments (2,817) Changes in valuation inputs or assumptions (1) 830 Fair value as of March 31, 2022 $ 2,285 ___________________ (1) The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the three months ended March 31, 2022. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the purchase price earn-out. These assumptions are based on historical performance and performance expectations over the term of the underlying instrument. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Company’s principal outstanding debt, debt discounts/premiums and debt issuance costs as of the dates indicated: Borrowing Description Collateral Balances (1) Interest Rate (2) Termination/ Maturity (3) Total Capacity (4) Outstanding as of March 31, 2022 (5) December 31, Student Loan Warehouse Facilities SoFi Funding I $ 66,038 SOFR + 100 bps April 2023 $ 200,000 $ 62,499 $ — SoFi Funding III (6) 9,720 PR – 134 bps September 2024 75,000 8,673 3,930 SoFi Funding V (7) — 1ML + 135 bps May 2023 350,000 — — SoFi Funding VI 161,378 3ML + 125 bps March 2024 600,000 153,396 56,709 SoFi Funding VII — SOFR + 85 bps September 2024 500,000 — 284,475 SoFi Funding VIII 291,106 1ML + 90 bps May 2022 300,000 266,281 245,723 SoFi Funding IX (8) 362,672 SOFR+ 210 bps and CP + 87.5 bps May 2025 500,000 339,467 9,816 SoFi Funding X (9) 342,018 CP + 95 bps April 2025 500,000 306,705 29,647 SoFi Funding XI (10) 467,093 CP + 100 bps November 2024 500,000 424,041 — SoFi Funding XII (11) — CP + 115 bps November 2024 200,000 — 20,267 SoFi Funding XIII 461,666 SOFR + 55 bps April 2024 450,000 408,384 424,348 Total, before unamortized debt issuance costs $ 2,161,691 $ 4,175,000 $ 1,969,446 $ 1,074,915 Unamortized debt issuance costs $ (7,706) $ (7,540) Personal Loan Warehouse Facilities SoFi Funding PL I (12) $ 146,768 CP + 137.5 bps September 2023 $ 250,000 $ 123,036 $ 11,911 SoFi Funding PL II — 3ML + 225 bps July 2023 400,000 — — SoFi Funding PL III — 1ML + 175 bps May 2023 250,000 — — SoFi Funding PL IV (13) — CP + 170 bps November 2023 500,000 — — SoFi Funding PL VI (14) — CP + 170 bps September 2024 50,000 — — SoFi Funding PL VII 97,052 1ML + 115 bps June 2022 250,000 81,518 71,572 SoFi Funding PL X 88,974 1ML + 142.5 bps February 2023 200,000 74,267 — SoFi Funding PL XI 112,854 SOFR + 125 bps January 2023 200,000 107,071 — SoFi Funding PL XIII 123,953 SOFR + 110 bps January 2032 300,000 108,597 — SoFi Funding PL XIV — SOFR + 100 bps October 2024 300,000 — 144,662 Total, before unamortized debt issuance costs $ 569,601 $ 2,700,000 $ 494,489 $ 228,145 Unamortized debt issuance costs $ (3,551) $ (3,898) Home Loan Warehouse Facilities Mortgage Warehouse VI $ — SOFR + 200 bps October 2022 $ 1,000 $ — $ — Total, before unamortized debt issuance costs $ — $ 1,000 $ — $ — Unamortized debt issuance costs $ — $ — Credit Card Warehouse Facilities SoFi Funding CC I LLC (15) $ — CP + 175 bps March 2023 $ 100,000 $ — $ 11,810 Total, before unamortized debt issuance costs $ — $ 100,000 $ — $ 11,810 Unamortized debt issuance costs $ (214) $ (312) Risk Retention Warehouse Facilities (16) SoFi RR Funding I $ 38,380 3ML + 200 bps January 2024 $ 100,000 $ 28,148 $ 22,608 SoFi RR Repo — 3ML + 185 bps January 2022 — — 69,843 SoFi RR Funding II 97,380 1ML + 125 bps November 2024 87,333 98,031 SoFi RR Funding III 39,058 1ML + 125 bps November 2024 35,475 39,158 SoFi RR Funding IV 73,167 SOFR + 150 bps October 2027 100,000 57,814 66,555 SoFi RR Funding V 44,221 298 bps December 2025 17,431 29,453 Total, before unamortized debt issuance costs $ 292,206 $ 226,201 $ 325,648 Unamortized debt issuance costs $ (1,626) $ (2,086) Borrowing Description Collateral Balances (1) Interest Rate (2) Termination/ Maturity (3) Total Capacity (4) Outstanding as of March 31, 2022 (5) December 31, Revolving Credit Facility SoFi Corporate Revolver (17) n/a 1ML + 100 bps September 2023 $ 560,000 $ 486,000 $ 486,000 Total, before unamortized debt issuance costs $ 560,000 $ 486,000 $ 486,000 Unamortized debt issuance costs $ (536) $ (626) Other Financing Convertible senior notes n/a —% October 2026 $ 1,200,000 $ 1,200,000 Total, before unamortized debt issuance costs and discount $ 1,200,000 $ 1,200,000 Unamortized debt issuance costs $ (1,549) $ (1,634) Unamortized discount (21,676) (22,858) Other financing (18) $ 19,131 $ 19,620 $ — $ — Student Loan Securitizations SoFi PLP 2016-B LLC $ 43,122 1ML + (120–380 bps) April 2037 $ 38,608 $ 43,186 SoFi PLP 2016-C LLC 49,566 1ML + (110–335 bps) May 2037 44,549 49,685 SoFi PLP 2016-D LLC 63,585 1ML + (95–323 bps) January 2039 57,096 61,760 SoFi PLP 2016-E LLC 73,983 1ML + (85–443 bps) October 2041 67,138 74,242 SoFi PLP 2017-A LLC 92,500 1ML + (70–443 bps) March 2040 83,744 92,972 SoFi PLP 2017-B LLC 77,538 274 – 444 bps May 2040 70,405 78,811 SoFi PLP 2017-C LLC 102,963 1ML + (60–421 bps) July 2040 92,915 102,814 Total, before unamortized debt issuance costs and discount $ 503,257 $ 454,455 $ 503,470 Unamortized debt issuance costs $ (3,424) $ (3,851) Unamortized discount (981) (1,094) Personal Loan Securitizations SoFi CLP 2018-3 LLC $ 64,281 467 bps August 2027 $ 59,918 $ 76,535 SoFi CLP 2018-4 LLC 73,628 417 – 476 bps November 2027 68,297 86,835 Total, before unamortized debt issuance costs, premiums and discount $ 137,909 $ 128,215 $ 163,370 Unamortized debt issuance costs $ (1,528) $ (1,683) Unamortized premium 160 207 Total, before unamortized debt issuance costs, premiums and discounts $ 4,958,806 $ 3,993,358 Less: unamortized debt issuance costs, premiums and discounts (42,631) (45,375) Total reported debt $ 4,916,175 $ 3,947,983 _________________ (1) As of March 31, 2022, represents unpaid principal balances, with the exception of the risk retention warehouse facilities, which include securitization-related investments carried at fair value. In addition, certain securitization interests that eliminate in consolidation are pledged to risk retention warehouse facilities. Collateral balances relative to debt balances as presented may vary period to period due to the timing of the next scheduled payment to the warehouse facility. (2) Unused commitment fees ranging from 0 to 70 basis points (“bps”) on our various warehouse facilities are recognized as noninterest expense—general and administrative in our unaudited condensed consolidated statements of operations and comprehensive income (loss). “ML” stands for “Month LIBOR”. As of March 31, 2022, 1ML and 3ML was 0.45% and 0.96%, respectively. As of December 31, 2021, 1ML and 3ML was 0.10% and 0.21%, respectively. As of March 31, 2022 and December 31, 2021, SOFR was 0.29% and 0.05%, respectively. “PR” stands for “Prime Rate”. As of March 31, 2022 and December 31, 2021, PR was 3.50% and 3.25%, respectively. (3) For securitization debt, the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts. Our maturity date represents the legal maturity of the last class of maturing notes. Securitization debt matures as loan collateral payments are made. (4) Represents total capacity as of March 31, 2022. (5) There were no debt discounts or premiums issued during the three months ended March 31, 2022. We paid $700 during the three months ended March 31, 2022 related to debt issuance costs accrued in 2021. (6) Warehouse facility has a prime rate floor of 309 bps. (7) Warehouse facility has a 1ML floor of 25 bps. (8) Warehouse facility incurs different interest rates on its two types of asset classes. One such class incurs interest based on a commercial paper (“CP”) rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.19%, respectively. (9) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.55% and 0.24%, respectively. (10) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.19%, respectively. The facility was amended in the first quarter of 2022 to allow up to $250 million of securitization risk retention securities to be pledged to the warehouse. As of March 31, 2022, $49.8 million of the collateral balance for the facility was related to securitization risk retention securities, with the remainder of the collateral balance related to student loans. (11) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.19%, respectively. Under certain conditions, warehouse facility could incur an interest rate spread of 215 bps. (12) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.18%, respectively. (13) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.16%, respectively. (14) Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.50% and 0.16%, respectively. (15) Warehouse facility incurs interest at a spread (as indicated in the table) plus the lower of (a) 3ML plus 35 bps or (b) the CP rate for this facility, which is determined by the facility lender. As of March 31, 2022 and December 31, 2021, the CP rate for this facility was 0.51% and 0.24%, respectively. (16) Financing was obtained for both asset-backed bonds and residual investments in various personal loan and student loan securitizations, and the underlying collateral are the underlying asset-backed bonds and residual investments. We only state capacity amounts in this table for risk retention facilities wherein we can pledge additional asset-backed bonds and residual investments as of March 31, 2022. (17) As of March 31, 2022, $6.0 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure a letter of credit. Refer to our letter of credit disclosures in Note 15 for more details. Additionally, the interest rate presented is the interest rate on standard withdrawals on our revolving credit facility, while same-day withdrawals incur interest based on PR. |
Schedule of Maturities of Borrowings | As of March 31, 2022, future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows: Remainder of 2022 $ — 2023 486,000 2024 — 2025 — 2026 1,200,000 Thereafter — Total $ 1,686,000 |
Temporary Equity (Tables)
Temporary Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Changes in Fair Value of Warrant Liabilities | The following table presents the changes in the fair value of the Series H warrant liabilities during the three months ended March 31, 2021, which was prior to the reclassification to permanent equity. Warrant Liabilities Three Months Ended March 31, 2021 Fair value as of January 1, 2021 $ 39,959 Change in valuation inputs or other assumptions 89,920 Fair value as of March 31, 2021 $ 129,879 |
Permanent Equity (Tables)
Permanent Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock, Reserved for Future Issuance | The Company reserved the following common stock for future issuance as of the dates indicated: March 31, December 31, 2022 2021 Outstanding stock options, RSUs and performance stock units (“PSU”) 105,784,967 92,829,067 Outstanding common stock warrants 12,170,990 12,170,990 Conversion of convertible notes (1) 53,538,000 53,538,000 Possible future issuance under stock plans 21,335,246 32,470,481 Potentially issuable contingent common stock (2) 598,068 — Total common stock reserved for future issuance 193,427,271 191,008,538 ____________________ (1) Represents the number of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the balance sheet date. (2) As of March 31, 2022, includes potentially issuable contingent common stock in connection with the Technisys Merger, which determination is pending final agreement regarding a closing net working capital calculation specified in the merger agreement. See Note 2 for additional information. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the rollforward of AOCI, inclusive of the changes in the components of other comprehensive loss for the periods indicated. AFS Debt Securities Foreign Currency Translation Adjustments Total Three Months Ended March 31, 2022 AOCI, beginning balance $ (1,351) $ (120) $ (1,471) Other comprehensive loss before reclassifications (1) (4,616) (38) (4,654) Amounts reclassified from AOCI into earnings 161 — 161 Net current-period other comprehensive loss (2) (4,455) (38) (4,493) AOCI, ending balance $ (5,806) $ (158) $ (5,964) Three Months Ended March 31, 2021 AOCI, beginning balance $ — $ (166) $ (166) Other comprehensive loss before reclassifications (1) — (80) (80) Net current-period other comprehensive loss (2) — (80) (80) AOCI, ending balance $ — $ (246) $ (246) ____________________ (1) Gross realized gains and losses from sales of our investments in AFS debt securities that were reclassified from AOCI to earnings are recorded within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). We did not have investments in AFS debt securities during the three months ended March 31, 2021. Additionally, there were no reclassifications related to foreign currency translation adjustments during the three months ended March 31, 2022 and 2021. (2) There were no tax impacts during any of the periods presented due to reserves against deferred tax assets in jurisdictions where other comprehensive loss activity was generated. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation | Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods indicated: Three Months Ended March 31, 2022 2021 Technology and product development $ 17,492 $ 11,616 Sales and marketing 5,133 2,445 Cost of operations 4,143 1,481 General and administrative 50,253 21,912 Total $ 77,021 $ 37,454 |
Schedule of Stock Option Activity | The following is a summary of stock option activity for the period indicated: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding as of January 1, 2022 21,171,147 $ 6.81 5.8 Granted (1) — n/a Exercised (1,055,775) 1.77 Forfeited (692) 6.82 Expired (55,365) 0.61 Outstanding as of March 31, 2022 20,059,315 $ 7.09 5.6 Exercisable as of March 31, 2022 19,906,559 $ 7.10 5.6 ____________________ (1) There were no stock options granted during the three months ended March 31, 2022. |
Schedule of Restricted Stock Unit Activity | The following table summarizes RSU activity for the period indicated: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2022 48,687,524 $ 12.23 Granted 19,548,471 9.78 Replacement Awards (1) 630,654 10.69 Vested (2) (4,951,204) 11.57 Forfeited (1,282,379) 11.34 Outstanding as of March 31, 2022 (3) 62,633,066 $ 11.52 ________________________ (1) In connection with the Technisys Merger, we converted outstanding Technisys performance awards into RSUs to acquire common stock of SoFi, and for which $2,855 of the fair value was attributed to pre-combination services. See Note 2 for additional information. (2) The total fair value, based on grant date fair value, of RSUs that vested during the three months ended March 31, 2022 was $57.3 million. (3) Includes 178,021 RSUs that were granted in 2020 and later modified in an improbable-to-probable modification (Type III), related to which $954 of share-based compensation expense was recorded during the three months ended March 31, 2022. |
Schedule of Performance Stock Unit Activity | The following table summarizes PSU activity for the period indicated: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2022 22,970,396 $ 9.52 Granted 122,190 3.71 Outstanding as of March 31, 2022 23,092,586 $ 9.49 |
Schedule of Valuation Inputs for Compensation Costs Associated with PSUs | The following key unobservable assumptions were used in the fair value measurement of our loans as of the dates indicated: March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average Student loans Conditional prepayment rate 16.8% – 26.1% 19.6% 16.5% – 26.3% 19.2% Annual default rate 0.2% – 3.1% 0.4% 0.2% – 4.2% 0.4% Discount rate 3.2% – 7.8% 3.5% 1.9% – 7.1% 2.9% Home loans Conditional prepayment rate 3.9% – 8.2% 7.4% 4.8% – 16.4% 12.4% Annual default rate 0.1% – 0.3% 0.1% 0.1% – 0.2% 0.1% Discount rate 3.8% – 13.0% 3.8% 2.5% – 13.0% 2.6% Personal loans Conditional prepayment rate 16.1% – 42.8% 20.1% 18.4% – 37.7% 20.5% Annual default rate 4.2% – 35.6% 4.4% 4.2% – 30.0% 4.4% Discount rate 5.0% – 7.6% 5.2% 3.9% – 7.0% 4.0% March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 15.2% – 24.8% 19.9% 15.2% – 25.6% 20.4% Annual default rate 0.2% – 4.3% 0.4% 0.2% – 4.3% 0.4% Discount rate 7.3% – 7.3% 7.3% 7.3% – 7.3% 7.3% Home loans Market servicing costs 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Conditional prepayment rate 5.7% – 12.8% 6.1% 10.0% – 16.4% 11.5% Annual default rate 0.1% – 0.1% 0.1% 0.1% – 0.2% 0.1% Discount rate 7.5% – 7.5% 7.5% 7.5% – 7.5% 7.5% Personal loans Market servicing costs 0.2% – 1.3% 0.2% 0.2% – 1.1% 0.2% Conditional prepayment rate 22.6% – 44.6% 25.7% 22.5% – 41.4% 26.0% Annual default rate 3.3% – 7.0% 4.4% 3.2% – 7.0% 4.4% Discount rate 7.3% – 7.3% 7.3% 7.3% – 7.3% 7.3% March 31, 2022 December 31, 2021 Discount rate (range) 1.5% – 4.1% 0.6% – 3.7% Conditional prepayment rate (range) 18.4% – 33.0% 19.5% – 32.2% The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt as of the dates indicated: March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 18.4% – 33.7% 22.7% 19.5% – 33.6% 23.0% Annual default rate 0.3% – 5.6% 0.9% 0.3% – 5.7% 0.9% Discount rate 3.1% – 10.5% 4.8% 2.6% – 10.5% 4.4% Residual interests classified as debt Conditional prepayment rate 19.3% – 44.2% 30.7% 20.0% – 41.8% 31.5% Annual default rate 0.5% – 5.4% 2.8% 0.5% – 5.6% 3.2% Discount rate 5.5% – 9.5% 6.2% 5.0% – 9.5% 5.7% March 31, 2022 December 31, 2021 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 48.0% – 59.0% 58.6% 75.0% – 75.0% 75.0% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% – 95.0% 95.0% ___________________ (1) The probability of honoring IRLCs and student loan commitments, which reflects the percentage likelihood that an approved loan application will close based on historical experience. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. The aggregate amount of student loans we committed to fund was $4,888 as of March 31, 2022. See Note 1 under “Derivative Financial Instruments” for the aggregate notional amount associated with IRLCs. Purchase Price Earn-Out March 31, 2022 December 31, 2021 Conditional prepayment rate 22.7% 22.9% Annual default rate 35.6% 30.0% Discount rate 25.0% 25.0% Three Months Ended Input March 31, 2022 Risk-free interest rate 1.6% Expected volatility 37.7% Fair value of common stock $12.06 Dividend yield 0% |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The calculation of basic and diluted loss per share was as follows for the periods indicated: Three Months Ended March 31, 2022 2021 Numerator: Net loss $ (110,357) $ (177,564) Less: Redeemable preferred stock dividends (9,968) (9,968) Net loss attributable to common stockholders – basic and diluted $ (120,325) $ (187,532) Denominator: Weighted average common stock outstanding – basic 852,853,596 116,152,593 Weighted average common stock outstanding – diluted 852,853,596 116,152,593 Loss per share – basic $ (0.14) $ (1.61) Loss per share – diluted $ (0.14) $ (1.61) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | We excluded the effect of the below elements from our calculation of diluted loss per share, as their inclusion would have been anti-dilutive, as there were no earnings attributable to common stockholders. These amounts represent the number of instruments outstanding at the end of each respective period: Three Months Ended March 31, 2022 2021 Common stock options 20,059,315 28,188,953 Common stock warrants 12,170,990 — Unvested RSUs 62,633,066 46,762,343 Unvested PSUs 23,092,586 — Convertible notes (1) 53,538,000 — Contingent common stock (2) 6,903,663 1,601,781 Potentially issuable contingent common stock (3) 598,068 — Redeemable preferred stock exchangeable for common stock — 465,916,522 Redeemable preferred stock warrants exchangeable for common stock — 12,170,990 ________________________ (1) Represents the number of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the balance sheet date. (2) For the three months ended March 31, 2022, includes contingently returnable common stock in connection with the Technisys Merger, which remains subject to further adjustment, pending final agreement regarding a closing net working capital calculation specified in the merger agreement. See Note 2 for additional information. For the three months ended March 31, 2021, included 320,649 contingently issuable common stock in connection with our acquisition of 8 Limited, which was subsequently issued during the fourth quarter of 2021, as well as 1,281,132 contingently issuable common stock related to an adjustment to a common stock issuance in December 2020, which was subsequently issued at the time of the closing of the Business Combination. (3) For the three months ended March 31, 2022, includes the maximum amount of potentially issuable contingent common stock in connection with the Technisys Merger, which is pending final agreement regarding a closing net working capital calculation specified in the merger agreement. See Note 2 for additional information. |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment for the periods indicated. Three Months Ended March 31, 2022 Lending (2) Technology Platform (1) Financial Services (1)(2) Reportable Segments Total (2) Corporate/Other (1)(2) Total Net revenue Net interest income (loss) $ 94,354 $ — $ 5,882 $ 100,236 $ (5,303) $ 94,933 Noninterest income (loss) 158,635 60,805 17,661 237,101 (1,690) 235,411 Total net revenue (loss) $ 252,989 $ 60,805 $ 23,543 $ 337,337 $ (6,993) $ 330,344 Servicing rights – change in valuation inputs or assumptions (3) (11,580) — — (11,580) Residual interests classified as debt – change in valuation inputs or assumptions (4) 2,963 — — 2,963 Directly attributable expenses (111,721) (42,550) (73,058) (227,329) Contribution profit (loss) $ 132,651 $ 18,255 $ (49,515) $ 101,391 Three Months Ended March 31, 2021 Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Net revenue Net interest income (loss) $ 51,777 $ (36) $ 229 $ 51,970 $ (4,690) $ 47,280 Noninterest income 96,200 46,101 6,234 148,535 169 148,704 Total net revenue (loss) $ 147,977 $ 46,065 $ 6,463 $ 200,505 $ (4,521) $ 195,984 Servicing rights – change in valuation inputs or assumptions (3) 12,109 — — 12,109 Residual interests classified as debt – change in valuation inputs or assumptions (4) 7,951 — — 7,951 Directly attributable expenses (80,351) (30,380) (41,982) (152,713) Contribution profit (loss) $ 87,686 $ 15,685 $ (35,519) $ 67,852 ____________________ (1) During the three months ended March 31, 2022, total net revenue for the Technology Platform segment included $770 of intercompany fees earned by Galileo from SoFi, which is a Galileo client. There is an equal and offsetting expense reflected within the Financial Services segment directly attributable expenses representing the intercompany fees incurred to Galileo. The intercompany revenue and expense are eliminated in consolidation. The revenue is eliminated within Corporate/Other and the expense is adjusted in our reconciliation of directly attributable expenses below. We did not recast the segment information for these intercompany amounts for the three months ended March 31, 2021, but rather reflected the full year 2021 impact within the fourth quarter of 2021, as inter-quarter amounts were determined to be immaterial. (2) During the three months ended March 31, 2022, we implemented a centralized FTP framework to attribute net interest income to our business segments based on their usage and/or provision of funding, which impacted the measure of net interest income and, thereby, total net revenue and contribution profit (loss) in our Lending and Financial Services segments, as well as the total net revenue in Corporate/Other, but had no impact on our consolidated results of operations. The net interest income presented within Corporate/Other represents the residual impact of the FTP charges and FTP credits on our reportable segments. (3) Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment and default rates and discount rates. This non-cash change, which is recorded within noninterest income in the unaudited condensed consolidated statements of operations and comprehensive income (loss) is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. (4) Reflects changes in fair value inputs and assumptions, including conditional prepayment and default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the unaudited condensed consolidated statements of operations and comprehensive income (loss). The fair value change attributable to assumption changes has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to securitization collateral cash flows), or the general operations of our business. As such, this non-cash change in fair value during the period is adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations. The following table reconciles reportable segments total contribution profit to loss before income taxes for the periods presented. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources. Three Months Ended March 31, 2022 2021 Reportable segments total contribution profit $ 101,391 $ 67,852 Corporate/Other total net loss (6,993) (4,521) Intercompany technology platform expenses 770 — Servicing rights – change in valuation inputs or assumptions 11,580 (12,109) Residual interests classified as debt – change in valuation inputs or assumptions (2,963) (7,951) Expenses not allocated to segments: Share-based compensation expense (77,021) (37,454) Depreciation and amortization expense (30,698) (25,977) Fair value change of warrant liabilities — (89,920) Employee-related costs (1) (42,690) (32,280) Other corporate and unallocated expenses (2) (62,981) (34,105) Loss before income taxes $ (109,605) $ (176,465) __________________ (1) Includes compensation, benefits, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments. (2) Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing and advertising costs, tools and subscription costs, professional services costs, corporate insurance expense and transaction-related expenses. |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Schedule of Risk and Leverage Based Capital Ratios and Amounts | The risk- and leverage-based capital ratios and amounts as of March 31, 2022 are presented below. March 31, 2022 Amount Ratio Required Minimum (1) Well-Capitalized Minimum (2) SoFi Bank CET1 risk-based capital $ 761,780 68.6 % 7.0 % 6.5 % Tier 1 risk-based capital 761,780 68.6 % 8.5 % 8.0 % Total risk-based capital 762,765 68.7 % 10.5 % 10.0 % Tier 1 leverage 761,780 59.4 % 6.5 % 5.0 % Risk-weighted assets $ 1,110,072 Quarterly adjusted average assets 1,282,720 SoFi Technologies CET1 risk-based capital $ 3,144,337 34.0 % 7.0 % N/A Tier 1 risk-based capital 3,144,337 34.0 % 8.5 % N/A Total risk-based capital 3,482,197 37.7 % 10.5 % N/A Tier 1 leverage 3,144,337 35.7 % 6.5 % N/A Risk-weighted assets $ 9,240,958 Quarterly adjusted average assets 8,810,780 ____________________ (1) Required minimums presented include a capital conservation buffer. (2) The well-capitalized minimum measure is applicable at the bank level only. |
Organization, Summary of Sign_2
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Organization (Details) | 3 Months Ended | |
Mar. 31, 2022segment | May 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Exchange ratio | 1.7428 | |
Number of reportable segments | 3 |
Organization, Summary of Sign_3
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Loans and Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | ||||
Amortization of deferred costs into interest income | $ 1,597 | |||
Deferred loan origination costs | 4,127 | |||
Financing receivable, allowance for credit loss | 17,866 | $ 7,037 | ||
Credit card loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 16,500 | $ 171 | $ 7,037 | $ 219 |
Credit card loans | Credit card loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 16,500 | |||
Accrued interest receivable written off | $ 451 | $ 0 |
Organization, Summary of Sign_4
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Equity Method Investments (Details) - Lower Holding Company $ in Millions | 1 Months Ended |
Aug. 31, 2021USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |
Equity method investment, ownership percentage | 5.00% |
Consideration transferred acquisition of equity method investment | $ 20 |
Organization, Summary of Sign_5
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Derivative liability | $ 7,985 | $ 864 | |
Gross Derivative Assets | |||
Gross Derivative Assets | 9,684 | 5,561 | |
Less: derivative netting | (2,942) | (117) | |
Total, net | 6,742 | 5,444 | |
Gross Derivative Liabilities | |||
Gross Derivative Liabilities | (10,927) | (981) | |
Gross offsetting liability positions | 2,942 | 117 | |
Total, net | (7,985) | (864) | |
Total notional amount of derivative contracts outstanding | 6,927,491 | 5,798,529 | |
Restricted cash and cash equivalents | |||
Gross Derivative Liabilities | |||
Cash collateral included in restricted cash and restricted cash equivalents | 7,985 | 299 | |
Interest rate swaps | |||
Gross Derivative Assets | |||
Gross Derivative Assets | 0 | 5,444 | |
Gross Derivative Liabilities | |||
Gross Derivative Liabilities | (7,985) | 0 | |
Interest rate swaps | Derivative contracts to manage future loan sale execution risk | |||
Gross Derivative Liabilities | |||
Total notional amount of derivative contracts outstanding | 4,885,000 | 4,210,000 | |
Interest rate swaps | Derivative contracts not designed to manage future loan sale execution risk | |||
Gross Derivative Liabilities | |||
Total notional amount of derivative contracts outstanding | 310,000 | 0 | |
Home loan pipeline hedges | |||
Gross Derivative Assets | |||
Gross Derivative Assets | 9,684 | 117 | |
Gross Derivative Liabilities | |||
Gross Derivative Liabilities | (150) | (313) | |
Home loan pipeline hedges | Derivative contracts to manage future loan sale execution risk | |||
Gross Derivative Liabilities | |||
Total notional amount of derivative contracts outstanding | 457,000 | 421,000 | |
Interest rate caps | |||
Gross Derivative Assets | |||
Gross Derivative Assets | 0 | 0 | |
Gross Derivative Liabilities | |||
Gross Derivative Liabilities | (2,792) | (668) | |
Interest rate caps | Derivative contracts to manage future loan sale execution risk | |||
Gross Derivative Liabilities | |||
Total notional amount of derivative contracts outstanding | 405,000 | 405,000 | |
Interest rate caps | Derivative contracts not designed to manage future loan sale execution risk | |||
Gross Derivative Liabilities | |||
Total notional amount of derivative contracts outstanding | 405,000 | 405,000 | |
IRLCs | Derivative contracts not designed to manage future loan sale execution risk | |||
Gross Derivative Liabilities | |||
Total notional amount of derivative contracts outstanding | 465,491 | $ 357,529 | |
Not designated as hedging instrument | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 158,910 | $ 27,569 | |
Not designated as hedging instrument | Derivative contracts to manage future loan sale execution risk | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 160,607 | 36,071 | |
Not designated as hedging instrument | Interest rate caps | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Gain (loss) from fair value changes on derivatives | (2,124) | 0 | |
Not designated as hedging instrument | Derivative contracts to manage securitization investment valuation risk | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 6,319 | 0 | |
Not designated as hedging instrument | IRLCs | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Gain (loss) from fair value changes on derivatives | (6,798) | (8,502) | |
Not designated as hedging instrument | Purchase price earn-out | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 831 | 0 | |
Not designated as hedging instrument | Third-party warrants | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 75 | $ 0 | |
Derivative liability | 964 | ||
Gross Derivative Liabilities | |||
Total, net | (964) | ||
Not designated as hedging instrument | Non-interest income, other operating income | Third-party warrants | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Gain (loss) from fair value changes on derivatives | (142) | ||
Not designated as hedging instrument | Noninterest expense, general and administrative | Third-party warrants | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Gain (loss) from fair value changes on derivatives | $ 217 |
Organization, Summary of Sign_6
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Deferred revenue | $ 6,887 | $ 2,553 | |
Deferred revenue, amount recognized | 785 | $ 156 | |
Capitalized sales commission | 850 | 678 | |
Sales commissions and fees | 1,121 | 809 | |
Amortization of deferred sales commissions | 82 | 64 | |
Accounts receivable, net associated with revenue from contracts with customers | 53,103 | 33,748 | |
Total revenue from contracts with customers | 77,022 | 54,227 | |
Technisys S.A. | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Accounts receivable, net associated with revenue from contracts with customers | 17,390 | ||
Financial Services | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 16,987 | 8,126 | |
Technology Platform | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 60,035 | 46,101 | |
Referrals | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Deferred revenue | 293 | $ 118 | |
Total revenue from contracts with customers | 7,768 | 2,254 | |
Referrals | Financial Services | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 7,768 | 2,254 | |
Brokerage | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 4,730 | 4,612 | |
Brokerage | Financial Services | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 4,730 | 4,612 | |
Payment network | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 4,464 | 1,644 | |
Payment network | Financial Services | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 4,286 | 1,202 | |
Payment network | Technology Platform | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 178 | 442 | |
Enterprise services | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 203 | 58 | |
Enterprise services | Financial Services | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 203 | 58 | |
Technology services | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 59,157 | 45,659 | |
Technology services | Technology Platform | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 59,157 | 45,659 | |
Software licenses | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | 700 | 0 | |
Software licenses | Technology Platform | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Total revenue from contracts with customers | $ 700 | $ 0 |
Organization, Summary of Sign_7
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Schedule of Interest-Bearing Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Interest-bearing deposits: | ||
Demand deposits | $ 753,134 | |
Savings deposits | 293,003 | |
Time deposits | 14,187 | |
Total interest-bearing deposits | 1,060,324 | $ 0 |
Uninsured deposits | $ 7,537 |
Organization, Summary of Sign_8
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
Remainder of 2022 | $ 10,206 |
2023 | 2,774 |
2024 | 794 |
2025 | 30 |
2026 | 281 |
Thereafter | 102 |
Total | $ 14,187 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Mar. 03, 2022 | Feb. 02, 2022 | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Mar. 31, 2022 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,615,694 | $ 1,615,694 | $ 898,527 | $ 1,615,694 | |||
Golden Pacific Bancorp, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration | $ 22,300 | ||||||
Initial paid-in capital requirement | 750,000 | ||||||
Holdback amount | 3,300 | ||||||
Goodwill | 11,200 | ||||||
Acquisition related costs | $ 2,200 | ||||||
Golden Pacific Bancorp, Inc. | Core Deposits | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 1,000 | ||||||
Amortization period for finite-lived intangible assets acquired | 7 years 3 months 18 days | ||||||
Golden Pacific Bancorp, Inc. | Indemnification Agreement | |||||||
Business Acquisition [Line Items] | |||||||
Holdback amount | $ 600 | ||||||
Technisys S.A. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration | $ 915,429 | ||||||
Goodwill | $ 705,920 | ||||||
Acquisition related costs | $ 16,500 | $ 3,300 | $ 19,800 | ||||
Potential increase (decrease) in equity component of total purchase consideration (in shares) | 598,068 | ||||||
Revenue of acquiree since acquisition date | 6,200 | ||||||
Loss of acquiree since acquisition date | $ 1,800 |
Business Combinations - Schedul
Business Combinations - Schedule of Purchase Consideration (Details) - Technisys S.A. - USD ($) $ in Thousands | Mar. 03, 2022 | Mar. 31, 2022 |
Business Combination, Consideration Transferred [Abstract] | ||
Fair value of common stock issued | $ 875,042 | |
Fair value of awards assumed | 2,855 | |
Amounts payable to settle vested employee performance awards | 37,297 | |
Settlement of pre-combination transactions between acquirer and acquiree | 235 | |
Total purchase consideration | $ 915,429 | |
Payments to settle vested employee performance awards | $ 2,868 | |
Common Stock | ||
Business Combination, Consideration Transferred [Abstract] | ||
Consideration transferred, shares issuable (in shares) | 81,856,112 | |
Shares held in escrow (in shares) | 6,903,663 |
Business Combinations - Sched_2
Business Combinations - Schedule of Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 03, 2022 | Dec. 31, 2021 |
Liabilities assumed | |||
Goodwill | $ 1,615,694 | $ 898,527 | |
Technisys S.A. | |||
Assets acquired | |||
Cash and cash equivalents | $ 25,710 | ||
Accounts receivable | 15,354 | ||
Intangible assets | 239,000 | ||
Operating lease right-of-use (“ROU”) assets | 587 | ||
Other assets | 1,011 | ||
Total identifiable assets acquired | 281,662 | ||
Liabilities assumed | |||
Accounts payable, accruals and other liabilities | 16,462 | ||
Operating lease liabilities | 587 | ||
Deferred income taxes | 55,104 | ||
Total liabilities assumed | 72,153 | ||
Total identified net assets acquired | 209,509 | ||
Goodwill | 705,920 | ||
Total purchase consideration | 915,429 | ||
Gross receivables acquired | 17,710 | ||
Receivables acquired, expected credit losses | $ 2,356 |
Business Combinations - Sched_3
Business Combinations - Schedule of Finite-Lived Intangible Assets Assumed (Details) - Technisys S.A. $ in Thousands | Mar. 03, 2022USD ($) |
Business Acquisition [Line Items] | |
Gross carrying amount | $ 239,000 |
Developed technology | |
Business Acquisition [Line Items] | |
Gross carrying amount | $ 187,000 |
Weighted-average useful life (years) | 8 years 9 months 18 days |
Customer-related | |
Business Acquisition [Line Items] | |
Gross carrying amount | $ 42,000 |
Weighted-average useful life (years) | 4 years 9 months 18 days |
Trade names, trademarks and domain names | |
Business Acquisition [Line Items] | |
Gross carrying amount | $ 10,000 |
Weighted-average useful life (years) | 8 years 9 months 18 days |
Business Combinations - Sched_4
Business Combinations - Schedule of Pro-forma Information (Details) - Technisys S.A. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||
Total net revenue | $ 342,109 | $ 208,943 |
Net loss | $ (103,983) | $ (201,317) |
Business Combinations - Sched_5
Business Combinations - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 03, 2022 | Feb. 02, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||||
Beginning balance | $ 898,527 | |||
Less: accumulated impairment | $ 0 | |||
Beginning balance, net | 1,615,694 | $ 898,527 | ||
Additional goodwill recognized | 717,167 | |||
Ending balance | 1,615,694 | |||
Technology Platform | ||||
Goodwill [Roll Forward] | ||||
Beginning balance, net | 1,578,535 | |||
Ending balance | 1,578,535 | |||
Financial Services | ||||
Goodwill [Roll Forward] | ||||
Beginning balance, net | 37,159 | |||
Ending balance | 37,159 | |||
Technisys S.A. | ||||
Goodwill [Roll Forward] | ||||
Beginning balance, net | $ 705,920 | |||
Additional goodwill recognized | 705,920 | |||
Golden Pacific Bancorp, Inc. | ||||
Goodwill [Roll Forward] | ||||
Beginning balance, net | $ 11,200 | |||
Additional goodwill recognized | $ 11,247 |
Investments in AFS Debt Secur_3
Investments in AFS Debt Securities - Schedule of Investments in Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 205,114 | $ 195,796 |
Accrued Interest | 535 | 462 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Losses | (5,809) | (1,355) |
Fair Value | 199,840 | 194,907 |
Amortization of premium | (291) | |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 119,450 | 103,014 |
Accrued Interest | 181 | 73 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,597) | (584) |
Fair Value | 117,034 | 102,503 |
Multinational securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,849 | 19,911 |
Accrued Interest | 74 | 109 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (594) | (154) |
Fair Value | 19,329 | 19,866 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 43,081 | 39,894 |
Accrued Interest | 239 | 235 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,883) | (480) |
Fair Value | 41,437 | 39,649 |
Agency TBA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,457 | |
Accrued Interest | 13 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (8) | |
Fair Value | 7,466 | |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,393 | 4,153 |
Accrued Interest | 26 | 14 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (281) | (31) |
Fair Value | 10,138 | 4,136 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,596 | 9,610 |
Accrued Interest | 5 | 5 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (366) | (91) |
Fair Value | 9,235 | 9,524 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,939 | |
Accrued Interest | 0 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 9,939 | |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,745 | 1,818 |
Accrued Interest | 10 | 13 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (88) | (7) |
Fair Value | $ 2,667 | $ 1,824 |
Investments in AFS Debt Secur_4
Investments in AFS Debt Securities - Schedule of Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | $ 25,939 | |
Due After One Year Through Five Years | 162,511 | |
Due After Five Years Through Ten Years | 6,185 | |
Due After Ten Years | 10,479 | |
Amortized Cost | $ 205,114 | $ 195,796 |
Weighted average yield for investments in AFS debt securities | ||
Due Within One Year | (3.68%) | |
Due After One Year Through Five Years | (8.77%) | |
Due After Five Years Through Ten Years | (10.94%) | |
Due After Ten Years | (10.29%) | |
Total | (8.27%) | |
AFS investment securities—Fair value: | ||
Due Within One Year | $ 25,574 | |
Due After One Year Through Five Years | 157,601 | |
Due After Five Years Through Ten Years | 5,968 | |
Due After Ten Years | 10,162 | |
Total | 199,305 | |
Accrued Interest | 535 | 462 |
U.S. Treasury securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 25,336 | |
Due After One Year Through Five Years | 94,114 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Amortized Cost | 119,450 | 103,014 |
AFS investment securities—Fair value: | ||
Due Within One Year | 24,974 | |
Due After One Year Through Five Years | 91,879 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Total | 116,853 | |
Accrued Interest | 181 | 73 |
Multinational securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 19,849 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Amortized Cost | 19,849 | 19,911 |
AFS investment securities—Fair value: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 19,255 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Total | 19,255 | |
Accrued Interest | 74 | 109 |
Corporate bonds | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 39,716 | |
Due After Five Years Through Ten Years | 3,365 | |
Due After Ten Years | 0 | |
Amortized Cost | 43,081 | 39,894 |
AFS investment securities—Fair value: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 37,952 | |
Due After Five Years Through Ten Years | 3,246 | |
Due After Ten Years | 0 | |
Total | 41,198 | |
Accrued Interest | 239 | 235 |
Agency mortgage-backed securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 3 | |
Due After One Year Through Five Years | 20 | |
Due After Five Years Through Ten Years | 824 | |
Due After Ten Years | 9,546 | |
Amortized Cost | 10,393 | 4,153 |
AFS investment securities—Fair value: | ||
Due Within One Year | 3 | |
Due After One Year Through Five Years | 20 | |
Due After Five Years Through Ten Years | 801 | |
Due After Ten Years | 9,288 | |
Total | 10,112 | |
Accrued Interest | 26 | 14 |
Other asset-backed securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 7,600 | |
Due After Five Years Through Ten Years | 1,996 | |
Due After Ten Years | 0 | |
Amortized Cost | 9,596 | 9,610 |
AFS investment securities—Fair value: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 7,309 | |
Due After Five Years Through Ten Years | 1,921 | |
Due After Ten Years | 0 | |
Total | 9,230 | |
Accrued Interest | 5 | 5 |
Other | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 600 | |
Due After One Year Through Five Years | 1,212 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 933 | |
Amortized Cost | 2,745 | 1,818 |
AFS investment securities—Fair value: | ||
Due Within One Year | 597 | |
Due After One Year Through Five Years | 1,186 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 874 | |
Total | 2,657 | |
Accrued Interest | $ 10 | $ 13 |
Investments in AFS Debt Secur_5
Investments in AFS Debt Securities - Schedule of Proceeds and Gross Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross realized gains included in earnings | $ 0 | |
Gross realized losses included in earnings | (161) | |
Net realized losses | (161) | |
Gross proceeds from sales, maturities and paydowns | 29,615 | |
Proceeds from maturities and paydowns of available-for-sale investments | $ 11,964 | $ 0 |
Loans - Schedule of Loan Portfo
Loans - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans at fair value | $ 7,002,885 | $ 5,952,972 | |
Total loans | [1] | 7,222,001 | 6,068,884 |
Commercial and consumer banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 79,728 | 0 | |
Credit card loans and commercial loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 219,116 | 115,912 | |
Securitized student loans | Student loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans at fair value | 513,378 | 574,328 | |
Securitized personal loans | Personal loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans at fair value | 177,179 | 234,576 | |
Student loans | Student loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans at fair value | 3,224,061 | 2,876,509 | |
Home loans | Home loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans at fair value | 146,658 | 212,709 | |
Personal loans | Personal loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans at fair value | 2,941,609 | 2,054,850 | |
Credit card | Credit card loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 139,388 | 115,912 | |
Commercial real estate | Commercial and consumer banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 67,627 | 0 | |
Commercial and industrial | Commercial and consumer banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 8,760 | 0 | |
Residential real estate and other consumer | Commercial and consumer banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 3,341 | $ 0 | |
[1] | Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 5.(2)As of March 31, 2022 and December 31, 2021, includes loans held for sale measured at fair value of $7,002,885 and $5,952,972, respectively. |
Loans - Schedule of Loans Measu
Loans - Schedule of Loans Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair value of loans 90 days or more delinquent | $ 7,002,885 | $ 5,952,972 |
Student Loans | Student Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair value of loans 90 days or more delinquent | 3,224,061 | 2,876,509 |
Home Loans | Home Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair value of loans 90 days or more delinquent | 146,658 | 212,709 |
Personal Loans | Personal Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Fair value of loans 90 days or more delinquent | 2,941,609 | 2,054,850 |
Fair Value, Recurring | Fair Value | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal | 6,843,097 | 5,755,228 |
Accumulated interest | 27,815 | 22,490 |
Cumulative fair value adjustments | 131,973 | 175,254 |
Fair value of loans 90 days or more delinquent | 7,002,885 | 5,952,972 |
Fair Value, Recurring | Fair Value | Fair Value of Loans 90 Days or More Delinquent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal | 6,122 | 6,354 |
Accumulated interest | 182 | 181 |
Cumulative fair value adjustments | (4,818) | (5,054) |
Fair value of loans 90 days or more delinquent | 1,486 | 1,481 |
Fair Value, Recurring | Fair Value | Student Loans | Student Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal | 3,683,512 | 3,356,344 |
Accumulated interest | 9,740 | 9,990 |
Cumulative fair value adjustments | 44,187 | 84,503 |
Fair value of loans 90 days or more delinquent | 3,737,439 | 3,450,837 |
Fair Value, Recurring | Fair Value | Student Loans | Fair Value of Loans 90 Days or More Delinquent | Student Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal | 1,959 | 1,589 |
Accumulated interest | 26 | 32 |
Cumulative fair value adjustments | (1,160) | (865) |
Fair value of loans 90 days or more delinquent | 825 | 756 |
Fair Value, Recurring | Fair Value | Home Loans | Home Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal | 153,222 | 210,111 |
Accumulated interest | 182 | 190 |
Cumulative fair value adjustments | (6,746) | 2,408 |
Fair value of loans 90 days or more delinquent | 146,658 | 212,709 |
Fair Value, Recurring | Fair Value | Personal Loans | Personal Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal | 3,006,363 | 2,188,773 |
Accumulated interest | 17,893 | 12,310 |
Cumulative fair value adjustments | 94,532 | 88,343 |
Fair value of loans 90 days or more delinquent | 3,118,788 | 2,289,426 |
Fair Value, Recurring | Fair Value | Personal Loans | Fair Value of Loans 90 Days or More Delinquent | Personal Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal | 4,163 | 4,765 |
Accumulated interest | 156 | 149 |
Cumulative fair value adjustments | (3,658) | (4,189) |
Fair value of loans 90 days or more delinquent | $ 661 | $ 725 |
Loans - Schedule of Changes in
Loans - Schedule of Changes in Loans Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Securitization clean-up calls | $ 275,499 | |
Instrument-Specific Credit Risk Instruments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Gain (loss) included in earnings from changes in instrument-specific credit risk | 6,496 | $ 6,926 |
Fair Value, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 5,952,972 | 4,859,068 |
Origination of loans | 3,322,191 | 2,545,978 |
Principal payments | (603,969) | (509,897) |
Sales of loans | (1,887,440) | (2,393,167) |
Purchases | 277,679 | 1,191 |
Change in accumulated interest | 5,325 | (3,471) |
Change in fair value | (63,873) | (27,098) |
Ending balance | 7,002,885 | 4,472,604 |
Fair Value, Recurring | Student Loans | Student Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 3,450,837 | 2,866,459 |
Origination of loans | 983,804 | 1,004,685 |
Principal payments | (227,115) | (250,219) |
Sales of loans | (544,150) | (936,160) |
Purchases | 116,433 | 71 |
Change in accumulated interest | (250) | (1,249) |
Change in fair value | (42,120) | (16,794) |
Ending balance | 3,737,439 | 2,666,793 |
Fair Value, Recurring | Home Loans | Home Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 212,709 | 179,689 |
Origination of loans | 312,383 | 735,604 |
Principal payments | (4,400) | (1,479) |
Sales of loans | (365,370) | (677,566) |
Purchases | 498 | 119 |
Change in accumulated interest | (8) | (35) |
Change in fair value | (9,154) | (4,429) |
Ending balance | 146,658 | 231,903 |
Fair Value, Recurring | Personal Loans | Personal Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 2,289,426 | 1,812,920 |
Origination of loans | 2,026,004 | 805,689 |
Principal payments | (372,454) | (258,199) |
Sales of loans | (977,920) | (779,441) |
Purchases | 160,748 | 1,001 |
Change in accumulated interest | 5,583 | (2,187) |
Change in fair value | (12,599) | (5,875) |
Ending balance | $ 3,118,788 | $ 1,573,908 |
Loans - Schedule of Loans by St
Loans - Schedule of Loans by Status (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | $ 17,866,000 | $ 7,037,000 | ||
Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 234,633,000 | |||
Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 223,835,000 | |||
30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 3,459,000 | |||
60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 2,625,000 | |||
≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 4,714,000 | |||
Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 10,798,000 | |||
Credit card loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 16,500,000 | 7,037,000 | $ 171,000 | $ 219,000 |
Credit card loans | Credit card loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 16,500,000 | |||
Accumulated accrued interest | 2,058,000 | 1,359,000 | ||
Loans on nonaccrual status | 0 | 0 | ||
Credit card loans | Credit card loans | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 153,830,000 | 121,590,000 | ||
Credit card loans | Credit card loans | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 143,161,000 | 115,356,000 | ||
Credit card loans | Credit card loans | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 3,330,000 | 1,893,000 | ||
Credit card loans | Credit card loans | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 2,625,000 | 1,683,000 | ||
Credit card loans | Credit card loans | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 4,714,000 | 2,658,000 | ||
Credit card loans | Credit card loans | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 10,669,000 | 6,234,000 | ||
Commercial and consumer banking | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 79,976,000 | |||
Financing receivable, allowance for credit loss | 1,366,000 | $ 0 | $ 0 | $ 0 |
Accumulated accrued interest | 289,000 | |||
Commercial and consumer banking | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 80,803,000 | |||
Commercial and consumer banking | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 80,674,000 | |||
Commercial and consumer banking | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 129,000 | |||
Commercial and consumer banking | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 129,000 | |||
Commercial and consumer banking | Commercial real estate | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 68,177,000 | |||
Commercial and consumer banking | Commercial real estate | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 68,385,000 | |||
Commercial and consumer banking | Commercial real estate | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 68,385,000 | |||
Commercial and consumer banking | Commercial real estate | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Commercial real estate | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Commercial real estate | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Commercial real estate | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Commercial and industrial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 8,521,000 | |||
Commercial and consumer banking | Commercial and industrial | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 9,075,000 | |||
Commercial and consumer banking | Commercial and industrial | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 8,946,000 | |||
Commercial and consumer banking | Commercial and industrial | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 129,000 | |||
Commercial and consumer banking | Commercial and industrial | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Commercial and industrial | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Commercial and industrial | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 129,000 | |||
Commercial and consumer banking | Residential real estate and other consumer | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 3,278,000 | |||
Commercial and consumer banking | Residential real estate and other consumer | Total Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 3,343,000 | |||
Commercial and consumer banking | Residential real estate and other consumer | Financial Asset, Not Past Due [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 3,343,000 | |||
Commercial and consumer banking | Residential real estate and other consumer | 30–59 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Residential real estate and other consumer | 60–89 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Residential real estate and other consumer | ≥ 90 Days | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | 0 | |||
Commercial and consumer banking | Residential real estate and other consumer | Total Delinquent Loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Total loans | $ 0 |
Loans - Internal Risk Tier Cate
Loans - Internal Risk Tier Categories (Details) - Total Loans - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 234,633 | |
Credit card loans | Credit card loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 153,830 | $ 121,590 |
Credit card loans | Credit card loans | Greater than or equal to 800 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 7,532 | 10,016 |
Credit card loans | Credit card loans | 780 – 799 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,429 | 8,624 |
Credit card loans | Credit card loans | 760 – 779 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 7,968 | 9,976 |
Credit card loans | Credit card loans | 740 – 759 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,744 | 13,581 |
Credit card loans | Credit card loans | 720 – 739 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 13,487 | 18,358 |
Credit card loans | Credit card loans | 700 – 719 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 18,763 | 22,579 |
Credit card loans | Credit card loans | 680 – 699 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 22,127 | 21,736 |
Credit card loans | Credit card loans | 660 – 679 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 21,369 | 14,044 |
Credit card loans | Credit card loans | 640 – 659 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 16,352 | 1,969 |
Credit card loans | Credit card loans | Less than 640 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 30,059 | $ 707 |
Loans - Risk Categories of Loan
Loans - Risk Categories of Loans by Class of Loans (Details) - Commercial and Consumer Banking $ in Thousands | Mar. 31, 2022USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | $ 2,856 |
One year prior to current fiscal year | 7,794 |
Two years prior to current fiscal year | 8,273 |
Three years prior to current fiscal year | 15,933 |
Four years prior to current fiscal year | 11,155 |
Prior | 33,965 |
Total | 79,976 |
Revolving Loans | 827 |
Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 2,856 |
One year prior to current fiscal year | 7,535 |
Two years prior to current fiscal year | 8,153 |
Three years prior to current fiscal year | 15,933 |
Four years prior to current fiscal year | 10,487 |
Prior | 23,213 |
Total | 68,177 |
Revolving Loans | 208 |
Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 259 |
Two years prior to current fiscal year | 120 |
Three years prior to current fiscal year | 0 |
Four years prior to current fiscal year | 668 |
Prior | 7,474 |
Total | 8,521 |
Revolving Loans | 554 |
Residential real estate and other consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 0 |
Two years prior to current fiscal year | 0 |
Three years prior to current fiscal year | 0 |
Four years prior to current fiscal year | 0 |
Prior | 3,278 |
Total | 3,278 |
Revolving Loans | 65 |
Pass | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 2,856 |
One year prior to current fiscal year | 5,827 |
Two years prior to current fiscal year | 8,153 |
Three years prior to current fiscal year | 12,437 |
Four years prior to current fiscal year | 6,994 |
Prior | 17,638 |
Total | 53,905 |
Revolving Loans | 208 |
Pass | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 259 |
Two years prior to current fiscal year | 120 |
Three years prior to current fiscal year | 0 |
Four years prior to current fiscal year | 115 |
Prior | 5,313 |
Total | 5,807 |
Revolving Loans | 399 |
Pass | Residential real estate and other consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 0 |
Two years prior to current fiscal year | 0 |
Three years prior to current fiscal year | 0 |
Four years prior to current fiscal year | 0 |
Prior | 3,234 |
Total | 3,234 |
Revolving Loans | 65 |
Watch | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 1,708 |
Two years prior to current fiscal year | 0 |
Three years prior to current fiscal year | 2,807 |
Four years prior to current fiscal year | 1,143 |
Prior | 4,082 |
Total | 9,740 |
Revolving Loans | 0 |
Watch | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 0 |
Two years prior to current fiscal year | 0 |
Three years prior to current fiscal year | 0 |
Four years prior to current fiscal year | 0 |
Prior | 296 |
Total | 296 |
Revolving Loans | 30 |
Watch | Residential real estate and other consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 0 |
Two years prior to current fiscal year | 0 |
Three years prior to current fiscal year | 0 |
Four years prior to current fiscal year | 0 |
Prior | 44 |
Total | 44 |
Revolving Loans | 0 |
Special mention | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 0 |
Two years prior to current fiscal year | 0 |
Three years prior to current fiscal year | 689 |
Four years prior to current fiscal year | 2,269 |
Prior | 416 |
Total | 3,374 |
Revolving Loans | 0 |
Special mention | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 0 |
Two years prior to current fiscal year | 0 |
Three years prior to current fiscal year | 0 |
Four years prior to current fiscal year | 0 |
Prior | 763 |
Total | 763 |
Revolving Loans | 0 |
Substandard | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 0 |
Two years prior to current fiscal year | 0 |
Three years prior to current fiscal year | 0 |
Four years prior to current fiscal year | 81 |
Prior | 1,077 |
Total | 1,158 |
Revolving Loans | 0 |
Substandard | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Current fiscal year | 0 |
One year prior to current fiscal year | 0 |
Two years prior to current fiscal year | 0 |
Three years prior to current fiscal year | 0 |
Four years prior to current fiscal year | 553 |
Prior | 1,102 |
Total | 1,655 |
Revolving Loans | $ 125 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2022investmententityloanTrust | Mar. 31, 2021loanTrustinvestment | Dec. 31, 2021investmententity | |
Variable Interest Entity [Line Items] | |||
Number of consolidated VIEs | entity | 12 | 13 | |
Variable Interest Entity, Not Primary Beneficiary | Personal Loans | |||
Variable Interest Entity [Line Items] | |||
Number of loan trusts established | loanTrust | 0 | 0 | |
Number of investments in VIEs | 9 | 9 | |
Number of deconsolidated VIEs | 0 | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Student Loans | |||
Variable Interest Entity [Line Items] | |||
Number of loan trusts established | loanTrust | 0 | 2 | |
Number of investments in VIEs | 24 | 24 | |
Number of deconsolidated VIEs | 1 | 0 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Consolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |||
Assets: | ||||||
Restricted cash and restricted cash equivalents | $ 377,077 | [1] | $ 273,726 | [1] | $ 347,284 | |
Loans | [1] | 7,222,001 | 6,068,884 | |||
Total assets | 12,246,576 | 9,176,326 | ||||
Liabilities: | ||||||
Accounts payable, accruals and other liabilities | [1] | 437,319 | 298,164 | |||
Debt | [1] | 4,916,175 | 3,947,983 | |||
Residual interests classified as debt | [1] | 70,532 | 93,682 | |||
Total liabilities | 6,715,903 | 4,478,623 | ||||
Variable Interest Entity, Primary Beneficiary | ||||||
Assets: | ||||||
Restricted cash and restricted cash equivalents | 40,906 | 53,161 | ||||
Loans | 690,557 | 808,904 | ||||
Total assets | 731,463 | 862,065 | ||||
Liabilities: | ||||||
Accounts payable, accruals and other liabilities | 344 | 388 | ||||
Debt | 576,897 | 660,419 | ||||
Residual interests classified as debt | 70,532 | 93,682 | ||||
Total liabilities | $ 647,773 | $ 754,489 | ||||
[1] | Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 5.(2)As of March 31, 2022 and December 31, 2021, includes loans held for sale measured at fair value of $7,002,885 and $5,952,972, respectively. |
Variable Interest Entities - No
Variable Interest Entities - Nonconsolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Securitization investments | $ 325,370 | $ 374,688 |
Variable interest entity, not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Securitization investments | 325,370 | 374,688 |
Variable interest entity, not primary beneficiary | Personal loans | ||
Variable Interest Entity [Line Items] | ||
Securitization investments | 52,230 | 62,925 |
Variable interest entity, not primary beneficiary | Student loans | ||
Variable Interest Entity [Line Items] | ||
Securitization investments | $ 273,140 | $ 311,763 |
Transfers of Financial Assets -
Transfers of Financial Assets - Schedule of Loan Securitizations Accounted for as Sales, Whole Loan Sales and Participating Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Student loans | Loan securitizations | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Cash | $ 500,041 | |
Securitization investments | 26,381 | |
Servicing assets recognized | 28,731 | |
Total consideration | 555,153 | |
Aggregate unpaid principal balance and accrued interest of loans sold | $ 0 | 526,126 |
Gain (loss) from loan sales | 29,027 | |
Student loans | Whole loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Cash | 548,911 | 422,341 |
Servicing assets recognized | 5,824 | 4,858 |
Repurchase liabilities recognized | (80) | (79) |
Total consideration | 554,655 | 427,120 |
Aggregate unpaid principal balance and accrued interest of loans sold | 546,287 | 413,090 |
Gain (loss) from loan sales | 8,368 | 14,030 |
Home loans | Whole loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Cash | 359,700 | 696,197 |
Servicing assets recognized | 4,238 | 6,539 |
Repurchase liabilities recognized | (420) | (939) |
Total consideration | 363,518 | 701,797 |
Aggregate unpaid principal balance and accrued interest of loans sold | 365,560 | 677,569 |
Gain (loss) from loan sales | (2,042) | 24,228 |
Personal loans | Whole loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Cash | 1,018,689 | 811,252 |
Servicing assets recognized | 6,424 | 6,003 |
Repurchase liabilities recognized | (2,298) | (2,084) |
Total consideration | 1,022,815 | 815,171 |
Aggregate unpaid principal balance and accrued interest of loans sold | 981,855 | 782,529 |
Gain (loss) from loan sales | $ 40,960 | $ 32,642 |
Transfers of Financial Assets_2
Transfers of Financial Assets - Unpaid Principal Balances of Transferred Loans and Cash Flows Received (Details) - Variable interest entity, not primary beneficiary - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | $ 19,457,183 | $ 19,886,137 | |
Servicing fees collected | 20,441 | $ 20,128 | |
Charge-offs, net of recoveries | 25,358 | 40,870 | |
Loans in repayment | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 19,184,036 | 19,566,257 | |
Loans in-school/grace/deferment | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 31,450 | 37,949 | |
Loans in forbearance | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 59,403 | 86,306 | |
Loans in delinquency | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 182,294 | 195,625 | |
Student Loans | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 9,472,323 | 10,048,624 | |
Servicing fees collected | 9,168 | 9,025 | |
Charge-offs, net of recoveries | 8,220 | 3,053 | |
Student Loans | Loans in repayment | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 9,302,518 | 9,852,957 | |
Student Loans | Loans in-school/grace/deferment | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 31,450 | 37,949 | |
Student Loans | Loans in forbearance | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 45,096 | 44,833 | |
Student Loans | Loans in delinquency | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 93,259 | 112,885 | |
Home Loans | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 4,828,944 | 4,622,819 | |
Servicing fees collected | 2,636 | 1,613 | |
Charge-offs, net of recoveries | 0 | 0 | |
Home Loans | Loans in repayment | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 4,805,945 | 4,575,001 | |
Home Loans | Loans in-school/grace/deferment | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 0 | 0 | |
Home Loans | Loans in forbearance | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 13,554 | 40,353 | |
Home Loans | Loans in delinquency | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 9,445 | 7,465 | |
Personal Loans | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 5,155,916 | 5,214,694 | |
Servicing fees collected | 8,637 | 9,490 | |
Charge-offs, net of recoveries | 17,138 | $ 37,817 | |
Personal Loans | Loans in repayment | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 5,075,573 | 5,138,299 | |
Personal Loans | Loans in-school/grace/deferment | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 0 | 0 | |
Personal Loans | Loans in forbearance | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | 753 | 1,120 | |
Personal Loans | Loans in delinquency | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total loans serviced | $ 79,590 | $ 75,275 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable | ||
Beginning balance | $ 2,292 | $ 562 |
Provision for credit losses | (591) | 1,135 |
Write-offs charged against the allowance | (49) | (778) |
Ending balance | 1,652 | 919 |
Credit Card Loans | ||
Beginning balance | 7,037 | |
Provision for credit losses | 12,961 | 0 |
Ending balance | 17,866 | |
Recovery of previously written off accounts receivable | 1,392 | 547 |
Credit Card Loans | ||
Credit Card Loans | ||
Beginning balance | 7,037 | 219 |
Provision for credit losses | 11,977 | 0 |
Allowance for PCD loans | 0 | |
Write-offs charged against the allowance | (2,514) | (48) |
Ending balance | 16,500 | 171 |
Recovery of previously written off credit card losses | 0 | 0 |
Commercial and Consumer Banking | ||
Credit Card Loans | ||
Beginning balance | 0 | 0 |
Provision for credit losses | 984 | 0 |
Allowance for PCD loans | 382 | |
Write-offs charged against the allowance | 0 | 0 |
Ending balance | $ 1,366 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Assets | |||||
Investments in AFS debt securities | $ 199,305 | ||||
Loans at fair value | 7,002,885 | $ 5,952,972 | |||
Servicing rights | 173,505 | 168,259 | $ 161,240 | $ 149,597 | |
Derivative assets | 6,742 | 5,444 | |||
Liabilities | |||||
Residual interests classified as debt | [1] | 70,532 | 93,682 | ||
Derivative liabilities | 7,985 | 864 | |||
Carrying Value | |||||
Assets | |||||
Cash and cash equivalents | 1,325,135 | 494,711 | |||
Restricted cash and restricted cash equivalents | 377,077 | 273,726 | |||
Loans at amortized cost | 219,116 | 115,912 | |||
Total assets | 9,665,858 | 7,600,272 | |||
Liabilities | |||||
Deposits | 14,187 | ||||
Debt | 4,916,175 | 3,947,983 | |||
Total liabilities | 5,014,860 | 4,042,529 | |||
Carrying Value | Fair Value, Recurring | |||||
Assets | |||||
Investments in AFS debt securities | 199,840 | 194,907 | |||
Loans at fair value | 7,002,885 | 5,952,972 | |||
Servicing rights | 173,505 | 168,259 | |||
Derivative assets | 9,684 | 5,444 | |||
Liabilities | |||||
Derivative liabilities | 10,927 | 864 | |||
Carrying Value | Fair Value, Recurring | Asset-backed bonds | |||||
Assets | |||||
Asset-backed bonds and residual investments | 218,693 | 253,669 | |||
Carrying Value | Fair Value, Recurring | Residual Investments | |||||
Assets | |||||
Asset-backed bonds and residual investments | 106,677 | 121,019 | |||
Carrying Value | Fair Value, Recurring | Non-securitization investments – ETFs | |||||
Assets | |||||
Non-securitization investments | 1,419 | 1,486 | |||
Carrying Value | Fair Value, Recurring | Third-party warrants | |||||
Assets | |||||
Derivative assets | 1,227 | 1,369 | |||
Carrying Value | Fair Value, Recurring | Purchase price earn-out | |||||
Assets | |||||
Derivative assets | 2,285 | 4,272 | |||
Carrying Value | Fair Value, Recurring | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 3,759 | ||||
Liabilities | |||||
Derivative liabilities | 3,039 | ||||
Carrying Value | Fair Value, Recurring | Student loan commitments | |||||
Assets | |||||
Student loan commitments | 23 | 2,220 | |||
Carrying Value | Fair Value, Recurring | Interest rate caps | |||||
Assets | |||||
Derivative assets | 3,116 | 493 | |||
Carrying Value | Fair Value, Recurring | Residual interests classified as debt | |||||
Liabilities | |||||
Residual interests classified as debt | 70,532 | 93,682 | |||
Carrying Value | Fair Value, Nonrecurring | Non-securitization investments - other | |||||
Assets | |||||
Non-securitization investments | 25,176 | 6,054 | |||
Fair Value | |||||
Assets | |||||
Cash and cash equivalents | 1,325,135 | 494,711 | |||
Restricted cash and restricted cash equivalents | 377,077 | 273,726 | |||
Loans at amortized cost | 227,917 | 118,412 | |||
Total assets | 9,674,659 | 7,602,772 | |||
Liabilities | |||||
Deposits | 14,145 | ||||
Debt | 4,727,346 | 4,047,813 | |||
Total liabilities | 4,825,989 | 4,142,359 | |||
Fair Value | Fair Value, Recurring | |||||
Assets | |||||
Investments in AFS debt securities | 199,840 | 194,907 | |||
Loans at fair value | 7,002,885 | 5,952,972 | |||
Servicing rights | 173,505 | 168,259 | |||
Derivative assets | 9,684 | 5,444 | |||
Liabilities | |||||
Derivative liabilities | 10,927 | 864 | |||
Fair Value | Fair Value, Recurring | Asset-backed bonds | |||||
Assets | |||||
Asset-backed bonds and residual investments | 218,693 | 253,669 | |||
Fair Value | Fair Value, Recurring | Residual Investments | |||||
Assets | |||||
Asset-backed bonds and residual investments | 106,677 | 121,019 | |||
Fair Value | Fair Value, Recurring | Non-securitization investments – ETFs | |||||
Assets | |||||
Non-securitization investments | 1,419 | 1,486 | |||
Fair Value | Fair Value, Recurring | Third-party warrants | |||||
Assets | |||||
Derivative assets | 1,227 | 1,369 | |||
Fair Value | Fair Value, Recurring | Purchase price earn-out | |||||
Assets | |||||
Derivative assets | 2,285 | 4,272 | |||
Fair Value | Fair Value, Recurring | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 3,759 | ||||
Liabilities | |||||
Derivative liabilities | 3,039 | ||||
Fair Value | Fair Value, Recurring | Student loan commitments | |||||
Assets | |||||
Student loan commitments | 23 | 2,220 | |||
Fair Value | Fair Value, Recurring | Interest rate caps | |||||
Assets | |||||
Derivative assets | 3,116 | 493 | |||
Fair Value | Fair Value, Recurring | Residual interests classified as debt | |||||
Liabilities | |||||
Residual interests classified as debt | 70,532 | 93,682 | |||
Fair Value | Fair Value, Nonrecurring | Non-securitization investments - other | |||||
Assets | |||||
Non-securitization investments | 25,176 | 6,054 | |||
Level 1 | |||||
Assets | |||||
Cash and cash equivalents | 1,325,135 | 494,711 | |||
Restricted cash and restricted cash equivalents | 377,077 | 273,726 | |||
Loans at amortized cost | 0 | 0 | |||
Total assets | 1,849,678 | 899,758 | |||
Liabilities | |||||
Deposits | 0 | ||||
Debt | 968,280 | 1,240,560 | |||
Total liabilities | 968,430 | 1,240,756 | |||
Level 1 | Fair Value, Recurring | |||||
Assets | |||||
Investments in AFS debt securities | 136,363 | 129,835 | |||
Loans at fair value | 0 | 0 | |||
Servicing rights | 0 | 0 | |||
Derivative assets | 9,684 | 0 | |||
Liabilities | |||||
Derivative liabilities | 150 | 196 | |||
Level 1 | Fair Value, Recurring | Asset-backed bonds | |||||
Assets | |||||
Asset-backed bonds and residual investments | 0 | 0 | |||
Level 1 | Fair Value, Recurring | Residual Investments | |||||
Assets | |||||
Asset-backed bonds and residual investments | 0 | 0 | |||
Level 1 | Fair Value, Recurring | Non-securitization investments – ETFs | |||||
Assets | |||||
Non-securitization investments | 1,419 | 1,486 | |||
Level 1 | Fair Value, Recurring | Third-party warrants | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Level 1 | Fair Value, Recurring | Purchase price earn-out | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Level 1 | Fair Value, Recurring | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 0 | ||||
Liabilities | |||||
Derivative liabilities | 0 | ||||
Level 1 | Fair Value, Recurring | Student loan commitments | |||||
Assets | |||||
Student loan commitments | 0 | 0 | |||
Level 1 | Fair Value, Recurring | Interest rate caps | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Level 1 | Fair Value, Recurring | Residual interests classified as debt | |||||
Liabilities | |||||
Residual interests classified as debt | 0 | 0 | |||
Level 1 | Fair Value, Nonrecurring | Non-securitization investments - other | |||||
Assets | |||||
Non-securitization investments | 0 | 0 | |||
Level 2 | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash and restricted cash equivalents | 0 | 0 | |||
Loans at amortized cost | 0 | 0 | |||
Total assets | 285,286 | 324,678 | |||
Liabilities | |||||
Deposits | 14,145 | ||||
Debt | 3,759,066 | 2,807,253 | |||
Total liabilities | 3,783,988 | 2,807,921 | |||
Level 2 | Fair Value, Recurring | |||||
Assets | |||||
Investments in AFS debt securities | 63,477 | 65,072 | |||
Loans at fair value | 0 | 0 | |||
Servicing rights | 0 | 0 | |||
Derivative assets | 0 | 5,444 | |||
Liabilities | |||||
Derivative liabilities | 10,777 | 668 | |||
Level 2 | Fair Value, Recurring | Asset-backed bonds | |||||
Assets | |||||
Asset-backed bonds and residual investments | 218,693 | 253,669 | |||
Level 2 | Fair Value, Recurring | Residual Investments | |||||
Assets | |||||
Asset-backed bonds and residual investments | 0 | 0 | |||
Level 2 | Fair Value, Recurring | Non-securitization investments – ETFs | |||||
Assets | |||||
Non-securitization investments | 0 | 0 | |||
Level 2 | Fair Value, Recurring | Third-party warrants | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Level 2 | Fair Value, Recurring | Purchase price earn-out | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Level 2 | Fair Value, Recurring | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 0 | ||||
Liabilities | |||||
Derivative liabilities | 0 | ||||
Level 2 | Fair Value, Recurring | Student loan commitments | |||||
Assets | |||||
Student loan commitments | 0 | 0 | |||
Level 2 | Fair Value, Recurring | Interest rate caps | |||||
Assets | |||||
Derivative assets | 3,116 | 493 | |||
Level 2 | Fair Value, Recurring | Residual interests classified as debt | |||||
Liabilities | |||||
Residual interests classified as debt | 0 | 0 | |||
Level 2 | Fair Value, Nonrecurring | Non-securitization investments - other | |||||
Assets | |||||
Non-securitization investments | 0 | 0 | |||
Level 3 | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash and restricted cash equivalents | 0 | 0 | |||
Loans at amortized cost | 227,917 | 118,412 | |||
Total assets | 7,539,695 | 6,378,336 | |||
Liabilities | |||||
Deposits | 0 | ||||
Debt | 0 | 0 | |||
Total liabilities | 73,571 | 93,682 | |||
Level 3 | Fair Value, Recurring | |||||
Assets | |||||
Investments in AFS debt securities | 0 | 0 | |||
Loans at fair value | 7,002,885 | 5,952,972 | |||
Servicing rights | 173,505 | 168,259 | |||
Derivative assets | 0 | 0 | |||
Liabilities | |||||
Derivative liabilities | 0 | 0 | |||
Level 3 | Fair Value, Recurring | Asset-backed bonds | |||||
Assets | |||||
Asset-backed bonds and residual investments | 0 | 0 | |||
Level 3 | Fair Value, Recurring | Residual Investments | |||||
Assets | |||||
Asset-backed bonds and residual investments | 106,677 | 121,019 | |||
Level 3 | Fair Value, Recurring | Non-securitization investments – ETFs | |||||
Assets | |||||
Non-securitization investments | 0 | 0 | |||
Level 3 | Fair Value, Recurring | Third-party warrants | |||||
Assets | |||||
Derivative assets | 1,227 | 1,369 | |||
Level 3 | Fair Value, Recurring | Purchase price earn-out | |||||
Assets | |||||
Derivative assets | 2,285 | 4,272 | |||
Level 3 | Fair Value, Recurring | Interest rate lock commitments | |||||
Assets | |||||
Derivative assets | 3,759 | ||||
Liabilities | |||||
Derivative liabilities | 3,039 | ||||
Level 3 | Fair Value, Recurring | Student loan commitments | |||||
Assets | |||||
Student loan commitments | 23 | 2,220 | |||
Level 3 | Fair Value, Recurring | Interest rate caps | |||||
Assets | |||||
Derivative assets | 0 | 0 | |||
Level 3 | Fair Value, Recurring | Residual interests classified as debt | |||||
Liabilities | |||||
Residual interests classified as debt | 70,532 | 93,682 | |||
Level 3 | Fair Value, Nonrecurring | Non-securitization investments - other | |||||
Assets | |||||
Non-securitization investments | $ 25,176 | $ 6,054 | |||
[1] | Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 5.(2)As of March 31, 2022 and December 31, 2021, includes loans held for sale measured at fair value of $7,002,885 and $5,952,972, respectively. |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Inputs and Assumptions (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Aggregate amount committed | $ 6,927,491 | $ 5,798,529 |
Student loan commitments | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Aggregate amount committed | $ 4,888 | |
Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed bonds | 0.184 | 0.195 |
Residual investments | 0.184 | 0.195 |
Residual interests classified as debt | 0.193 | 0.200 |
Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed bonds | 0.330 | 0.322 |
Residual investments | 0.337 | 0.336 |
Residual interests classified as debt | 0.442 | 0.418 |
Conditional prepayment rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.227 | 0.230 |
Residual interests classified as debt | 0.307 | 0.315 |
Purchase price earn-out | 0.227 | 0.229 |
Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.003 | 0.003 |
Residual interests classified as debt | 0.005 | 0.005 |
Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.056 | 0.057 |
Residual interests classified as debt | 0.054 | 0.056 |
Annual default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.009 | 0.009 |
Residual interests classified as debt | 0.028 | 0.032 |
Purchase price earn-out | 0.356 | 0.300 |
Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed bonds | 0.015 | 0.006 |
Residual investments | 0.031 | 0.026 |
Residual interests classified as debt | 0.055 | 0.050 |
Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed bonds | 0.041 | 0.037 |
Residual investments | 0.105 | 0.105 |
Residual interests classified as debt | 0.095 | 0.095 |
Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.048 | 0.044 |
Residual interests classified as debt | 0.062 | 0.057 |
Purchase price earn-out | 0.250 | 0.250 |
Loan funding probability | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate lock commitments | 0.480 | 0.750 |
Student loan commitments | 0.950 | 0.950 |
Loan funding probability | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate lock commitments | 0.590 | 0.750 |
Student loan commitments | 0.950 | 0.950 |
Loan funding probability | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate lock commitments | 0.586 | 0.750 |
Student loan commitments | 0.950 | 0.950 |
Student loans | Market servicing costs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Student loans | Market servicing costs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.002 | 0.002 |
Student loans | Market servicing costs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Student loans | Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.168 | 0.165 |
Servicing rights | 0.152 | 0.152 |
Student loans | Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.261 | 0.263 |
Servicing rights | 0.248 | 0.256 |
Student loans | Conditional prepayment rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.196 | 0.192 |
Servicing rights | 0.199 | 0.204 |
Student loans | Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.002 | 0.002 |
Servicing rights | 0.002 | 0.002 |
Student loans | Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.031 | 0.042 |
Servicing rights | 0.043 | 0.043 |
Student loans | Annual default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.004 | 0.004 |
Servicing rights | 0.004 | 0.004 |
Student loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.032 | 0.019 |
Servicing rights | 0.073 | 0.073 |
Student loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.078 | 0.071 |
Servicing rights | 0.073 | 0.073 |
Student loans | Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.035 | 0.029 |
Servicing rights | 0.073 | 0.073 |
Home loans | Market servicing costs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Home loans | Market servicing costs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Home loans | Market servicing costs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.001 |
Home loans | Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.039 | 0.048 |
Servicing rights | 0.057 | 0.100 |
Home loans | Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.082 | 0.164 |
Servicing rights | 0.128 | 0.164 |
Home loans | Conditional prepayment rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.074 | 0.124 |
Servicing rights | 0.061 | 0.115 |
Home loans | Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.001 | 0.001 |
Servicing rights | 0.001 | 0.001 |
Home loans | Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.003 | 0.002 |
Servicing rights | 0.001 | 0.002 |
Home loans | Annual default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.001 | 0.001 |
Servicing rights | 0.001 | 0.001 |
Home loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.038 | 0.025 |
Servicing rights | 0.075 | 0.075 |
Home loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.130 | 0.130 |
Servicing rights | 0.075 | 0.075 |
Home loans | Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.038 | 0.026 |
Servicing rights | 0.075 | 0.075 |
Personal loans | Market servicing costs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.002 | 0.002 |
Personal loans | Market servicing costs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.013 | 0.011 |
Personal loans | Market servicing costs | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.002 | 0.002 |
Personal loans | Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.161 | 0.184 |
Servicing rights | 0.226 | 0.225 |
Personal loans | Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.428 | 0.377 |
Servicing rights | 0.446 | 0.414 |
Personal loans | Conditional prepayment rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.201 | 0.205 |
Servicing rights | 0.257 | 0.260 |
Personal loans | Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.042 | 0.042 |
Servicing rights | 0.033 | 0.032 |
Personal loans | Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.356 | 0.300 |
Servicing rights | 0.070 | 0.070 |
Personal loans | Annual default rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.044 | 0.044 |
Servicing rights | 0.044 | 0.044 |
Personal loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.050 | 0.039 |
Servicing rights | 0.073 | 0.073 |
Personal loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.076 | 0.070 |
Servicing rights | 0.073 | 0.073 |
Personal loans | Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.052 | 0.040 |
Servicing rights | 0.073 | 0.073 |
Fair Value Measurements - Sensi
Fair Value Measurements - Sensitivity Analysis for Servicing Rights (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Market servicing costs | ||
2.5 basis points increase | $ (10,651) | $ (10,822) |
5.0 basis points increase | (21,303) | (21,644) |
Conditional prepayment rate | ||
10% increase | (5,675) | (6,260) |
20% increase | (11,200) | (12,031) |
Annual default rate | ||
10% increase | (206) | (205) |
20% increase | (410) | (408) |
Discount rate | ||
100 basis points increase | (4,698) | (3,782) |
200 basis points increase | $ (9,084) | $ (7,349) |
Fair Value Measurements - Servi
Fair Value Measurements - Servicing Rights at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Servicing rights, beginning balance | $ 168,259 | $ 149,597 |
Recognition of servicing from transfers of financial assets | 16,486 | 46,131 |
Servicing rights assumed from third parties | 629 | |
Derecognition of servicing via loan purchases | (1,410) | |
Change in valuation inputs or other assumptions | 11,580 | (12,109) |
Realization of expected cash flows and other changes | (22,039) | (22,379) |
Servicing rights, ending balance | 173,505 | 161,240 |
Student Loans | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Servicing rights, beginning balance | 90,003 | 100,637 |
Recognition of servicing from transfers of financial assets | 5,824 | 33,589 |
Servicing rights assumed from third parties | 0 | |
Derecognition of servicing via loan purchases | (1,041) | |
Change in valuation inputs or other assumptions | 1,292 | (15,728) |
Realization of expected cash flows and other changes | (10,121) | (12,160) |
Servicing rights, ending balance | 85,957 | 106,338 |
Home Loans | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Servicing rights, beginning balance | 50,533 | 23,914 |
Recognition of servicing from transfers of financial assets | 4,238 | 6,539 |
Servicing rights assumed from third parties | 0 | |
Derecognition of servicing via loan purchases | 0 | |
Change in valuation inputs or other assumptions | 7,740 | 3,329 |
Realization of expected cash flows and other changes | (2,926) | (1,744) |
Servicing rights, ending balance | 59,585 | 32,038 |
Personal Loans | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Servicing rights, beginning balance | 27,723 | 25,046 |
Recognition of servicing from transfers of financial assets | 6,424 | 6,003 |
Servicing rights assumed from third parties | 629 | |
Derecognition of servicing via loan purchases | (369) | |
Change in valuation inputs or other assumptions | 2,548 | 290 |
Realization of expected cash flows and other changes | (8,992) | (8,475) |
Servicing rights, ending balance | $ 27,963 | $ 22,864 |
Fair Value Measurements - Resid
Fair Value Measurements - Residual Investments and Residual Interests Rollforward (Details) - Fair Value, Recurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Residual Investments | ||
Beginning balance | $ 5,952,972 | $ 4,859,068 |
Ending balance | 7,002,885 | 4,472,604 |
Residual Investments | ||
Residual Investments | ||
Beginning balance | 121,019 | 139,524 |
Additions | 26,381 | |
Change in valuation inputs or other assumptions | 762 | 3,497 |
Payments | (15,104) | (18,441) |
Ending balance | 106,677 | 150,961 |
Residual Interests Classified as Debt | ||
Residual Interests Classified as Debt | ||
Beginning balance | 93,682 | 118,298 |
Additions | 0 | |
Change in valuation inputs or other assumptions | 2,963 | 7,951 |
Payments | (26,113) | (11,367) |
Ending balance | $ 70,532 | $ 114,882 |
Fair Value Measurements - Inter
Fair Value Measurements - Interest Rate Lock and Student Loan Commitments (Details) - Fair Value, Recurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Residual Investments | ||
Beginning balance | $ 5,952,972 | $ 4,859,068 |
Ending balance | 7,002,885 | 4,472,604 |
Interest Rate Lock Commitments | ||
Residual Investments | ||
Beginning balance | 3,759 | 15,620 |
Revaluation adjustments | (3,039) | 7,118 |
Funded loans | (2,201) | (10,210) |
Unfunded loans | (1,558) | (5,410) |
Ending balance | (3,039) | 7,118 |
Student Loan Commitments | ||
Residual Investments | ||
Beginning balance | 2,220 | 0 |
Revaluation adjustments | 23 | 0 |
Funded loans | (2,121) | 0 |
Unfunded loans | (99) | 0 |
Ending balance | $ 23 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Recurring | Non-Securitization Investments – ETFs | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of non-securitization investments, other | $ 0 | $ 0 | |
Fair Value, Nonrecurring | Non-Securitization Investments – Other | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of non-securitization investments, other | 25,176 | 6,054 | |
Fair Value | Fair Value, Recurring | Non-Securitization Investments – ETFs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of non-securitization investments, other | 1,419 | 1,486 | |
Fair Value | Fair Value, Nonrecurring | Non-Securitization Investments – Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of non-securitization investments, other | 25,176 | 6,054 | |
Fair Value | Fair Value, Nonrecurring | Other Security Investments, Additional Equity Investment One | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of non-securitization investments, other | 2,168 | 2,168 | |
Realized investment gain (loss) | $ 3,967 | ||
Proceeds from sale of investment | $ 2,000 | ||
Fair Value | Fair Value, Nonrecurring | Other Security Investments, Additional Equity Investment Two | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of non-securitization investments, other | $ 2,000 | $ 2,000 |
Fair Value Measurements - Purch
Fair Value Measurements - Purchase Price Earn-Out Rollforward (Details) - Fair Value, Recurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Purchase Price Earn-Out | ||
Beginning balance | $ 5,952,972 | $ 4,859,068 |
Ending balance | 7,002,885 | $ 4,472,604 |
Purchase Price Earn-Out | ||
Purchase Price Earn-Out | ||
Beginning balance | 4,272 | |
Payments | (2,817) | |
Change in valuation inputs or assumptions | 830 | |
Ending balance | $ 2,285 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Outstanding | $ 4,958,806 | $ 3,993,358 |
Unamortized debt issuance costs | (4,127) | |
Less: unamortized debt issuance costs and discounts | (42,631) | (45,375) |
Total reported debt | 4,916,175 | 3,947,983 |
Debt discounts issued | 0 | |
Debt premium issued | 0 | |
Payments of debt issuance costs | 700 | |
Amount not available for general borrowing purposes to secure letter of credit | 9,100 | 9,100 |
Asset Pledged as Collateral | ||
Debt Instrument [Line Items] | ||
Amount not available for general borrowing purposes to secure letter of credit | 8,200 | |
Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 503,257 | |
Outstanding | 454,455 | 503,470 |
Unamortized debt issuance costs | (3,424) | (3,851) |
Unamortized discount | (981) | (1,094) |
Personal Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 137,909 | |
Outstanding | 128,215 | 163,370 |
Unamortized debt issuance costs | (1,528) | (1,683) |
Unamortized discount | 160 | 207 |
Secured Debt | Asset Pledged as Collateral | ||
Debt Instrument [Line Items] | ||
Face amount | 12,000 | |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Face amount | $ 7,600 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Unused commitment fee percentage | 0.00% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Unused commitment fee percentage | 0.70% | |
Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | $ 2,161,691 | |
Total Capacity | 4,175,000 | |
Outstanding | 1,969,446 | 1,074,915 |
Unamortized debt issuance costs | (7,706) | (7,540) |
Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 569,601 | |
Total Capacity | 2,700,000 | |
Outstanding | 494,489 | 228,145 |
Unamortized debt issuance costs | (3,551) | (3,898) |
Home Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 1,000 | |
Outstanding | 0 | 0 |
Unamortized debt issuance costs | 0 | 0 |
Credit Card Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 100,000 | |
Outstanding | 0 | 11,810 |
Unamortized debt issuance costs | (214) | (312) |
Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 292,206 | |
Outstanding | 226,201 | 325,648 |
Unamortized debt issuance costs | (1,626) | (2,086) |
SoFi Funding I | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 66,038 | |
Total Capacity | 200,000 | |
Outstanding | 62,499 | 0 |
SoFi Funding III | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 9,720 | |
Total Capacity | 75,000 | |
Outstanding | 8,673 | 3,930 |
SoFi Funding V | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 350,000 | |
Outstanding | 0 | 0 |
SoFi Funding VI | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 161,378 | |
Total Capacity | 600,000 | |
Outstanding | 153,396 | 56,709 |
SoFi Funding VII | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 500,000 | |
Outstanding | 0 | 284,475 |
SoFi Funding VIII | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 291,106 | |
Total Capacity | 300,000 | |
Outstanding | 266,281 | 245,723 |
SoFi Funding IX | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 362,672 | |
Total Capacity | 500,000 | |
Outstanding | 339,467 | 9,816 |
SoFi Funding X | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 342,018 | |
Total Capacity | 500,000 | |
Outstanding | 306,705 | 29,647 |
SoFi Funding XI | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 467,093 | |
Total Capacity | 500,000 | |
Outstanding | 424,041 | 0 |
SoFi Funding XI | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 49,800 | |
SoFi Funding XI | Risk Retention Warehouse Facilities | Maximum | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 250,000 | |
SoFi Funding XII | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 200,000 | |
Outstanding | 0 | 20,267 |
SoFi Funding XIII | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 461,666 | |
Total Capacity | 450,000 | |
Outstanding | 408,384 | 424,348 |
SoFi Funding PL I | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 146,768 | |
Total Capacity | 250,000 | |
Outstanding | 123,036 | 11,911 |
SoFi Funding PL II | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 400,000 | |
Outstanding | 0 | 0 |
SoFi Funding PL III | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 250,000 | |
Outstanding | 0 | 0 |
SoFi Funding PL IV | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 500,000 | |
Outstanding | 0 | 0 |
SoFi Funding PL VI | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 50,000 | |
Outstanding | 0 | 0 |
SoFi Funding PL VII | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 97,052 | |
Total Capacity | 250,000 | |
Outstanding | 81,518 | 71,572 |
SoFi Funding PL X | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 88,974 | |
Total Capacity | 200,000 | |
Outstanding | 74,267 | 0 |
SoFi Funding PL XI | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 112,854 | |
Total Capacity | 200,000 | |
Outstanding | 107,071 | 0 |
SoFi Funding PL XIII | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 123,953 | |
Total Capacity | 300,000 | |
Outstanding | 108,597 | 0 |
SoFi Funding PL XIV | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 300,000 | |
Outstanding | 0 | 144,662 |
Mortgage Warehouse VI | Home Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 1,000 | |
Outstanding | 0 | 0 |
SoFi Funding CC I LLC | Credit Card Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 100,000 | |
Outstanding | 0 | 11,810 |
SoFi RR Funding I | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 38,380 | |
Total Capacity | 100,000 | |
Outstanding | 28,148 | 22,608 |
SoFi RR Repo | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 0 | |
Total Capacity | 0 | |
Outstanding | 0 | 69,843 |
SoFi RR Funding II | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 97,380 | |
Outstanding | 87,333 | 98,031 |
SoFi RR Funding III | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 39,058 | |
Outstanding | 35,475 | 39,158 |
SoFi RR Funding IV | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 73,167 | |
Total Capacity | 100,000 | |
Outstanding | 57,814 | 66,555 |
SoFi RR Funding V | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Collateral Balances | $ 44,221 | |
Interest Rate | 2.98% | |
Outstanding | $ 17,431 | 29,453 |
SoFi Corporate Revolver | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Amount not available for general borrowing purposes to secure letter of credit | 6,000 | |
SoFi Corporate Revolver | Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total Capacity | 560,000 | |
Outstanding | 486,000 | 486,000 |
Unamortized debt issuance costs | $ (536) | (626) |
Convertible Senior Notes Due 2026 | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.00% | |
Outstanding | $ 1,200,000 | 1,200,000 |
Unamortized debt issuance costs | (1,549) | (1,634) |
Unamortized discount | (21,676) | (22,858) |
Other Financing | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 19,131 | |
Total Capacity | 19,620 | |
Outstanding | 0 | 0 |
SoFi PLP 2016-B LLC | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 43,122 | |
Outstanding | 38,608 | 43,186 |
SoFi PLP 2016-C LLC | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 49,566 | |
Outstanding | 44,549 | 49,685 |
SoFi PLP 2016-D LLC | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 63,585 | |
Outstanding | 57,096 | 61,760 |
SoFi PLP 2016-E LLC | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 73,983 | |
Outstanding | 67,138 | 74,242 |
SoFi PLP 2017-A LLC | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 92,500 | |
Outstanding | 83,744 | 92,972 |
SoFi PLP 2017-B LLC | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 77,538 | |
Outstanding | $ 70,405 | 78,811 |
SoFi PLP 2017-B LLC | Minimum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.74% | |
SoFi PLP 2017-B LLC | Maximum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.44% | |
SoFi PLP 2017-C LLC | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | $ 102,963 | |
Outstanding | 92,915 | 102,814 |
SoFi CLP 2018-3 LLC | Personal Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | $ 64,281 | |
Interest Rate | 4.67% | |
Outstanding | $ 59,918 | 76,535 |
SoFi CLP 2018-4 LLC | Personal Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Collateral Balances | 73,628 | |
Outstanding | $ 68,297 | $ 86,835 |
SoFi CLP 2018-4 LLC | Minimum | Personal Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.17% | |
SoFi CLP 2018-4 LLC | Maximum | Personal Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.76% | |
LIBOR | SoFi Funding V | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.25% | |
LIBOR | SoFi Funding V | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.35% | |
LIBOR | SoFi Funding VI | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.25% | |
LIBOR | SoFi Funding VIII | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.90% | |
LIBOR | SoFi Funding PL II | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.25% | |
LIBOR | SoFi Funding PL III | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.75% | |
LIBOR | SoFi Funding PL VII | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.15% | |
LIBOR | SoFi Funding PL X | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.425% | |
LIBOR | SoFi Funding CC I LLC | Credit Card Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.35% | |
LIBOR | SoFi RR Funding I | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.00% | |
LIBOR | SoFi RR Repo | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.85% | |
LIBOR | SoFi RR Funding II | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.25% | |
LIBOR | SoFi RR Funding III | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.25% | |
LIBOR | SoFi Corporate Revolver | Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.00% | |
LIBOR | SoFi PLP 2016-B LLC | Minimum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.20% | |
LIBOR | SoFi PLP 2016-B LLC | Maximum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.80% | |
LIBOR | SoFi PLP 2016-C LLC | Minimum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.10% | |
LIBOR | SoFi PLP 2016-C LLC | Maximum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.35% | |
LIBOR | SoFi PLP 2016-D LLC | Minimum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.95% | |
LIBOR | SoFi PLP 2016-D LLC | Maximum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.23% | |
LIBOR | SoFi PLP 2016-E LLC | Minimum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.85% | |
LIBOR | SoFi PLP 2016-E LLC | Maximum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.43% | |
LIBOR | SoFi PLP 2017-A LLC | Minimum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.70% | |
LIBOR | SoFi PLP 2017-A LLC | Maximum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.43% | |
LIBOR | SoFi PLP 2017-C LLC | Minimum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.60% | |
LIBOR | SoFi PLP 2017-C LLC | Maximum | Student Loan Securitizations | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.21% | |
Prime Rate | SoFi Funding III | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.09% | |
Prime Rate | SoFi Funding III | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.34% | |
Commercial Paper Rate | SoFi Funding IX | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.50% | 0.19% |
Commercial Paper Rate | SoFi Funding IX | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.875% | |
Commercial Paper Rate | SoFi Funding X | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.55% | 0.24% |
Commercial Paper Rate | SoFi Funding X | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.95% | |
Commercial Paper Rate | SoFi Funding XI | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.50% | 0.19% |
Commercial Paper Rate | SoFi Funding XI | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.00% | |
Commercial Paper Rate | SoFi Funding XII | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.50% | 0.19% |
Commercial Paper Rate | SoFi Funding XII | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.15% | |
Commercial Paper Rate | SoFi Funding XII | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.15% | |
Commercial Paper Rate | SoFi Funding PL I | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.50% | 0.18% |
Commercial Paper Rate | SoFi Funding PL I | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.375% | |
Commercial Paper Rate | SoFi Funding PL IV | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.50% | 0.16% |
Commercial Paper Rate | SoFi Funding PL IV | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.70% | |
Commercial Paper Rate | SoFi Funding PL VI | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.50% | 0.16% |
Commercial Paper Rate | SoFi Funding PL VI | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.70% | |
Commercial Paper Rate | SoFi Funding CC I LLC | Credit Card Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.75% | |
Interest Rate | 0.51% | 0.24% |
SOFR | SoFi Funding I | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.00% | |
SOFR | SoFi Funding VII | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.85% | |
SOFR | SoFi Funding IX | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.10% | |
SOFR | SoFi Funding XIII | Student Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.55% | |
SOFR | SoFi Funding PL XI | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.25% | |
SOFR | SoFi Funding PL XIII | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.10% | |
SOFR | SoFi Funding PL XIV | Personal Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.00% | |
SOFR | Mortgage Warehouse VI | Home Loan Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.00% | |
SOFR | SoFi RR Funding IV | Risk Retention Warehouse Facilities | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.50% |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||
Debt assumed in acquisition | $ 2,000 | $ 0 |
Golden Pacific Bancorp, Inc. | ||
Debt Instrument [Line Items] | ||
Debt assumed in acquisition | $ 2,000 | |
Warehouse Facilities | Risk Retention Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Number of loans closed | loan | 1 | |
Value of loan facilities closed | $ 192,141 |
Debt - Maturities of Borrowings
Debt - Maturities of Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total reported debt | $ 4,916,175 | $ 3,947,983 |
Debt with Scheduled Payments | ||
Debt Instrument [Line Items] | ||
Remainder of 2022 | 0 | |
2023 | 486,000 | |
2024 | 0 | |
2025 | 0 | |
2026 | 1,200,000 | |
Thereafter | 0 | |
Total reported debt | $ 1,686,000 |
Temporary Equity - Narrative (D
Temporary Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | May 28, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Temporary Equity [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | |||||
Redeemable preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||
Redeemable preferred stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0.0000025 | |||
Redeemable preferred stock, shares issued (in shares) | 3,234,000 | 3,234,000 | ||||
Redeemable preferred stock, shares outstanding (in shares) | 3,234,000 | 469,150,522 | 3,234,000 | 469,150,522 | ||
Dividends payable | $ 9,968 | $ 0 | ||||
Warrant To Purchase Series H Redeemable Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Number of warrants issued (in shares) | 12,170,990 | |||||
Series 1 | ||||||
Temporary Equity [Line Items] | ||||||
Redeemable preferred stock, shares authorized (in shares) | 4,500,000 | |||||
Redeemable preferred stock, shares issued (in shares) | 3,234,000 | |||||
Redeemable preferred stock, shares outstanding (in shares) | 3,234,000 | |||||
Redeemable preferred stock, original issuance price (in dollars per share) | $ 100 | |||||
Dividends | $ 9,968 | $ 9,968 | ||||
Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Redeemable preferred stock, shares issued (in shares) | 0 | |||||
Redeemable preferred stock, shares outstanding (in shares) | 0 |
Temporary Equity - Warrant Liab
Temporary Equity - Warrant Liability (Details) - Warrant Liability $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Residual Interests Classified as Debt | |
Beginning balance | $ 39,959 |
Change in valuation inputs or other assumptions | 89,920 |
Ending balance | $ 129,879 |
Permanent Equity - Narrative (D
Permanent Equity - Narrative (Details) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 01, 2021 |
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 3,100,000,000 | 3,100,000,000 | |
Common stock, par value (in dollars per share) | $ 0 | $ 0 | |
Common stock, shares issued (in shares) | 915,673,855 | 828,154,462 | |
Common stock, shares outstanding (in shares) | 915,673,855 | 828,154,462 | |
Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 3,000,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.0001 | ||
Non-Voting Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | ||
Common stock, shares issued (in shares) | 0 | 0 | |
Common stock, shares outstanding (in shares) | 0 | 0 |
Permanent Equity - Common Stock
Permanent Equity - Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 193,427,271 | 191,008,538 |
Conversion of Convertible Notes | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 53,538,000 | 53,538,000 |
Potentially issuable contingent common stock | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 598,068 | 0 |
Possible future issuance under stock plans | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 21,335,246 | 32,470,481 |
Outstanding common stock warrants | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 12,170,990 | 12,170,990 |
Outstanding stock options, RSUs and performance stock units (“PSU”) | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 105,784,967 | 92,829,067 |
Permanent Equity - Accumulated
Permanent Equity - Accumulated Other Comprehensive Income (Loss) Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 4,377,329 | $ (120,115) |
Other comprehensive loss before reclassifications | (4,654) | (80) |
Amounts reclassified from AOCI into earnings | 161 | |
Total other comprehensive loss | (4,493) | (80) |
Ending balance | 5,210,299 | (293,638) |
Accumulated Other Comprehensive Loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,471) | (166) |
Total other comprehensive loss | (4,493) | (80) |
Ending balance | (5,964) | (246) |
Available-for-Sale Securities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (1,351) | 0 |
Other comprehensive loss before reclassifications | (4,616) | 0 |
Amounts reclassified from AOCI into earnings | 161 | |
Total other comprehensive loss | (4,455) | 0 |
Ending balance | (5,806) | 0 |
Foreign Currency Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (120) | (166) |
Other comprehensive loss before reclassifications | (38) | (80) |
Amounts reclassified from AOCI into earnings | 0 | |
Total other comprehensive loss | (38) | (80) |
Ending balance | $ (158) | $ (246) |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Thousands | Jan. 01, 2022shares | Mar. 31, 2022USD ($)tranche | Mar. 31, 2021USD ($) | Jun. 14, 2021shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | shares | 63,575,425 | |||
Number of additional shares authorized for issuance (in shares) | shares | 8,937,242 | |||
Taxes paid related to net share settlement of share-based awards | $ 3,593 | $ 25,989 | ||
Compensation cost related to unvested stock options | 4,500 | |||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Taxes paid related to net share settlement of share-based awards | $ 3,593 | $ 25,989 | ||
Compensation cost related to share based awards, period for recognition | 3 years 2 months 12 days | |||
Unrecognized compensation | $ 664,600 | |||
Restricted stock units | 2022 Restricted Stock Unit Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share award vesting rights, percentage | 12.50% | |||
Share award vesting rights, period | 6 months | |||
Restricted stock units | 2017 Restricted Stock Unit Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share award vesting rights, percentage | 25.00% | |||
Share award vesting rights, period | 1 year | |||
Common stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost related to share based awards, period for recognition | 10 months 24 days | |||
Performance stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost related to share based awards, period for recognition | 1 year 7 months 6 days | |||
Unrecognized compensation | $ 137,000 | |||
Number of vesting tranches | tranche | 3 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | $ 77,021 | $ 37,454 |
Technology and product development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 17,492 | 11,616 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 5,133 | 2,445 |
Cost of operations | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | 4,143 | 1,481 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total | $ 50,253 | $ 21,912 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Option Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Number of Stock Options | ||
Beginning balance (in shares) | 21,171,147 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (1,055,775) | |
Forfeited (in shares) | (692) | |
Expired (in shares) | (55,365) | |
Ending balance (in shares) | 20,059,315 | 21,171,147 |
Exercisable (in shares) | 19,906,559 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 6.81 | |
Exercised (in dollars per share) | 1.77 | |
Forfeited (in dollars per share) | 6.82 | |
Expired (in dollars per share) | 0.61 | |
Ending balance (in dollars per share) | 7.09 | $ 6.81 |
Exercisable (in dollars per share) | $ 7.10 | |
Weighted Average Remaining Contractual Term (in years) | ||
Weighted average remaining contractual term, outstanding | 5 years 7 months 6 days | 5 years 9 months 18 days |
Weighted average remaining contractual term, exercisable | 5 years 7 months 6 days |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of RSU and PSU Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 03, 2022 | Mar. 31, 2022 | Dec. 31, 2020 |
Weighted Average Grant Date Fair Value | |||
Share-based compensation expense recognized based on awards expected to vest and modification-date fair value | $ 954 | ||
Technisys S.A. | |||
Weighted Average Grant Date Fair Value | |||
Fair value of share awards assumed | $ 2,855 | ||
Restricted Stock Units | |||
Number of RSUs | |||
Beginning balance (in shares) | 48,687,524 | ||
Granted (in shares) | 19,548,471 | ||
Replacement Awards (in shares) | 630,654 | ||
Vested (in shares) | (4,951,204) | ||
Forfeited (in shares) | (1,282,379) | ||
Ending balance (in shares) | 62,633,066 | ||
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 12.23 | ||
Granted (in dollars per share) | 9.78 | ||
Replacement Awards (in dollars per share) | 10.69 | ||
Vested (in dollars per share) | 11.57 | ||
Forfeited (in dollars per share) | 11.34 | ||
Ending balance (in dollars per share) | $ 11.52 | ||
Total fair value, RSUs granted | $ 57,300 | ||
Adjustment for shares granted during period due to administrative freeze on issuances (in shares) | 178,021 | ||
Performance Stock Units | |||
Number of RSUs | |||
Beginning balance (in shares) | 22,970,396 | ||
Granted (in shares) | 122,190 | ||
Ending balance (in shares) | 23,092,586 | ||
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 9.52 | ||
Granted (in dollars per share) | 3.71 | ||
Ending balance (in dollars per share) | $ 9.49 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Fair Value Inputs for PSUs (Details) - Performance stock units | 3 Months Ended |
Mar. 31, 2022$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.60% |
Expected volatility | 37.70% |
Fair value of common stock in (dollars per share) | $ 12.06 |
Dividend yield | 0.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ (752) | $ (1,099) |
Related Parties - Narrative (De
Related Parties - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Related party notes | $ 0 | $ 211 | |
APEX Loan | Equity Method Investee | |||
Related Party Transaction [Line Items] | |||
Proceeds from related party for settlement of outstanding obligation | $ 18,304 | ||
Related party notes | 211 | ||
APEX Loan, Principal Balances | Equity Method Investee | |||
Related Party Transaction [Line Items] | |||
Proceeds from related party for settlement of outstanding obligation | 16,693 | ||
APEX Loan, Discount Accretion | Equity Method Investee | |||
Related Party Transaction [Line Items] | |||
Proceeds from related party for settlement of outstanding obligation | $ 1,611 | ||
Related party notes | $ 169 |
Commitments, Guarantees, Conc_2
Commitments, Guarantees, Concentrations and Contingencies - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2021USD ($) | Sep. 30, 2019 | Mar. 31, 2022USD ($)repurchaseObligation | Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |||||||
Non-cash operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 764 | ||||||
Additional operating lease cost not accounted for due to deferment, CARES Act | $ 566 | ||||||
Number of repurchase obligations | repurchaseObligation | 3 | ||||||
Estimated repurchase obligations | $ 5,201 | $ 7,441 | |||||
Loans sold, subject to terms and conditions of repurchase obligations | 6,500,000 | 6,500,000 | |||||
Letters of credit outstanding with financial institutions | 9,100 | 9,100 | |||||
Collateral amount | 3,100 | $ 3,100 | |||||
Asset Pledged as Collateral | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Letters of credit outstanding with financial institutions | 8,200 | ||||||
Naming and Sponsorship Agreement | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Term of partnership | 20 years | ||||||
Payments for exclusive naming rights and partnerships | $ 3,300 | $ 9,800 | $ 6,500 | ||||
Potential sales and marketing expenses | $ 12,700 | ||||||
Minimum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease, renewal term | 1 year | ||||||
Maximum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease, renewal term | 10 years |
Loss Per Share - Schedule of Ea
Loss Per Share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net loss | $ (110,357) | $ (177,564) |
Less: Redeemable preferred stock dividends | (9,968) | (9,968) |
Net loss attributable to common stockholders – basic | (120,325) | (187,532) |
Net loss attributable to common stockholders – diluted | $ (120,325) | $ (187,532) |
Denominator: | ||
Weighted average common stock outstanding - basic (in shares) | 852,853,596 | 116,152,593 |
Weighted average common stock outstanding - diluted (in shares) | 852,853,596 | 116,152,593 |
Loss per share - basic (in dollars per share) | $ (0.14) | $ (1.61) |
Loss per share - diluted (in dollars per share) | $ (0.14) | $ (1.61) |
Loss Per Share - Schedule of An
Loss Per Share - Schedule of Anti-Dilutive Elements (Details) - shares | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Common stock options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 20,059,315 | 28,188,953 | |
Common stock warrants | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 12,170,990 | 0 | |
Unvested RSUs | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 62,633,066 | 46,762,343 | |
Unvested PSUs | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 23,092,586 | 0 | |
Convertible notes | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 53,538,000 | 0 | |
Contingent common stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,903,663 | 1,601,781 | |
Potentially issuable contingent common stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 598,068 | 0 | |
Redeemable preferred stock exchangeable for common stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 465,916,522 | |
Redeemable preferred stock warrants exchangeable for common stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 12,170,990 | |
Contingently issuable common stock | 8 Limited | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,281,132 | 320,649 |
Business Segment Information -
Business Segment Information - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 3 | |
Net interest income (loss) | $ 94,933 | $ 47,280 |
Related party interest income | 0 | 211 |
Reversal of loss on discount to fair value | 16,895 | 6,845 |
Reportable Segments Total | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | 100,236 | 51,970 |
Reportable Segments Total | Lending | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | 94,354 | 51,777 |
Reportable Segments Total | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | 5,882 | 229 |
Reportable Segments Total | Hypothetical Impact | Lending | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | (110) | |
Reportable Segments Total | Hypothetical Impact | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | (29) | |
Corporate/Other | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | $ (5,303) | (4,690) |
APEX Loan | Equity Method Investee | ||
Segment Reporting Information [Line Items] | ||
Related party interest income | 211 | |
APEX Loan, Discount Accretion | Equity Method Investee | ||
Segment Reporting Information [Line Items] | ||
Related party interest income | 169 | |
APEX Loan, Discount Accretion | Equity Method Investee | Corporate/Other | ||
Segment Reporting Information [Line Items] | ||
Reversal of loss on discount to fair value | $ 169 |
Business Segment Information _2
Business Segment Information - Schedule of Financial Results (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | $ 94,933 | $ 47,280 |
Noninterest income (loss) | 235,411 | 148,704 |
Total net revenue | 330,344 | 195,984 |
Servicing rights – change in valuation inputs or assumptions | (11,580) | 12,109 |
Reportable Segments Total | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | 100,236 | 51,970 |
Noninterest income (loss) | 237,101 | 148,535 |
Total net revenue | 337,337 | 200,505 |
Servicing rights – change in valuation inputs or assumptions | (11,580) | 12,109 |
Residual interests classified as debt – change in valuation inputs or assumptions | 2,963 | 7,951 |
Directly attributable expenses | (227,329) | (152,713) |
Contribution profit (loss) | 101,391 | 67,852 |
Intercompany technology platform expenses | 770 | 0 |
Reportable Segments Total | Lending | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | 94,354 | 51,777 |
Noninterest income (loss) | 158,635 | 96,200 |
Total net revenue | 252,989 | 147,977 |
Servicing rights – change in valuation inputs or assumptions | (11,580) | 12,109 |
Residual interests classified as debt – change in valuation inputs or assumptions | 2,963 | 7,951 |
Directly attributable expenses | (111,721) | (80,351) |
Contribution profit (loss) | 132,651 | 87,686 |
Reportable Segments Total | Technology Platform | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | 0 | (36) |
Noninterest income (loss) | 60,805 | 46,101 |
Total net revenue | 60,805 | 46,065 |
Servicing rights – change in valuation inputs or assumptions | 0 | 0 |
Residual interests classified as debt – change in valuation inputs or assumptions | 0 | 0 |
Directly attributable expenses | (42,550) | (30,380) |
Contribution profit (loss) | 18,255 | 15,685 |
Reportable Segments Total | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | 5,882 | 229 |
Noninterest income (loss) | 17,661 | 6,234 |
Total net revenue | 23,543 | 6,463 |
Servicing rights – change in valuation inputs or assumptions | 0 | 0 |
Residual interests classified as debt – change in valuation inputs or assumptions | 0 | 0 |
Directly attributable expenses | (73,058) | (41,982) |
Contribution profit (loss) | (49,515) | (35,519) |
Corporate/Other | ||
Segment Reporting Information [Line Items] | ||
Net interest income (loss) | (5,303) | (4,690) |
Noninterest income (loss) | (1,690) | 169 |
Total net revenue | $ (6,993) | $ (4,521) |
Business Segment Information _3
Business Segment Information - Reconciliation of Contribution Profit (Loss) To Loss Before Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Servicing rights – change in valuation inputs or assumptions | $ 11,580 | $ (12,109) |
Share-based compensation expense | (77,021) | (37,454) |
Depreciation and amortization expense | (30,698) | (25,977) |
Fair value change of warrant liabilities | 0 | (89,920) |
Loss before income taxes | (109,605) | (176,465) |
Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Reportable segments total contribution profit | 101,391 | 67,852 |
Treasury and Other total net loss | (6,993) | (4,521) |
Intercompany technology platform expenses | 770 | 0 |
Servicing rights – change in valuation inputs or assumptions | 11,580 | (12,109) |
Residual interests classified as debt – change in valuation inputs or assumptions | (2,963) | (7,951) |
Expenses not allocated to segments | ||
Segment Reporting Information [Line Items] | ||
Share-based compensation expense | (77,021) | (37,454) |
Depreciation and amortization expense | (30,698) | (25,977) |
Fair value change of warrant liabilities | 0 | (89,920) |
Employee-related costs | (42,690) | (32,280) |
Other corporate and unallocated expenses | ||
Segment Reporting Information [Line Items] | ||
Other corporate and unallocated expenses | $ (62,981) | $ (34,105) |
Regulatory Capital (Details)
Regulatory Capital (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Subsidiaries | |
CET1 risk-based capital | |
Amount | $ 761,780 |
Ratio | 0.686 |
Required Minimum | 0.070 |
Well-Capitalized Minimum | 0.065 |
Tier 1 risk-based capital | |
Amount | $ 761,780 |
Ratio | 0.686 |
Required Minimum | 0.085 |
Well-Capitalized Minimum | 0.080 |
Total risk-based capital | |
Amount | $ 762,765 |
Ratio | 0.687 |
Required Minimum | 0.105 |
Well-Capitalized Minimum | 0.100 |
Tier 1 leverage | |
Amount | $ 761,780 |
Ratio | 0.594 |
Required Minimum | 0.065 |
Well-Capitalized Minimum | 0.050 |
Risk-weighted assets | $ 1,110,072 |
Quarterly adjusted average assets | 1,282,720 |
Parent Company | |
CET1 risk-based capital | |
Amount | $ 3,144,337 |
Ratio | 0.340 |
Required Minimum | 0.070 |
Tier 1 risk-based capital | |
Amount | $ 3,144,337 |
Ratio | 0.340 |
Required Minimum | 0.085 |
Total risk-based capital | |
Amount | $ 3,482,197 |
Ratio | 0.377 |
Required Minimum | 0.105 |
Tier 1 leverage | |
Amount | $ 3,144,337 |
Ratio | 0.357 |
Required Minimum | 0.065 |
Risk-weighted assets | $ 9,240,958 |
Quarterly adjusted average assets | $ 8,810,780 |