Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Smaller Reporting Company | false | ||
Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7.4 | ||
Entity Common Stock, Shares Outstanding | 976,736,877 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated by reference in Part III. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant’s fiscal year ended December 31, 2023. | ||
Entity Central Index Key | 0001818874 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | San Francisco, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and cash equivalents | $ 3,085,020 | $ 1,421,907 | |
Restricted cash and restricted cash equivalents | 530,558 | 424,395 | |
Investment securities (includes available-for-sale securities of $595,187 and $195,438 at fair value with associated amortized cost of $596,757 and $203,418, as of December 31, 2023 and 2022, respectively) | 701,935 | 396,769 | |
Loans held for sale, at fair value | 15,396,771 | 13,557,074 | |
Loans held for investment, at fair value | 6,725,484 | 0 | |
Loans held for investment (less allowance for credit losses on loans at amortized cost of $54,695 and $40,788 as of December 31, 2023 and 2022, respectively) | 836,159 | 307,957 | |
Servicing rights | 180,469 | 149,854 | |
Property, equipment and software | 216,908 | 170,104 | |
Goodwill | 1,393,505 | 1,622,991 | |
Intangible assets | 364,048 | 442,155 | |
Operating lease right-of-use assets | 89,635 | 97,135 | |
Other assets (less allowance for credit losses of $1,837 and $2,785 as of December 31, 2023 and 2022, respectively) | 554,366 | 417,334 | |
Total assets | 30,074,858 | 19,007,675 | |
Deposits [Abstract] | |||
Interest-bearing deposits | 18,568,993 | 7,265,792 | |
Noninterest-bearing deposits | 51,670 | 76,504 | |
Total deposits | 18,620,663 | 7,342,296 | |
Accounts payable, accruals and other liabilities | 549,748 | 516,215 | |
Operating lease liabilities | 108,649 | 117,758 | |
Debt | 5,233,416 | 5,485,882 | |
Residual interests classified as debt | 7,396 | 17,048 | |
Total liabilities | 24,519,872 | 13,479,199 | |
Commitments, guarantees, concentrations and contingencies (Note 18) | |||
Temporary equity: | |||
Redeemable preferred stock, $0.00 par value: 100,000,000 and 100,000,000 shares authorized; 3,234,000 and 3,234,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively | [1] | 320,374 | 320,374 |
Permanent equity: | |||
Common stock | [2] | 97 | 93 |
Additional paid-in capital | 7,039,987 | 6,719,826 | |
Accumulated other comprehensive loss | (1,209) | (8,296) | |
Accumulated deficit | (1,804,263) | (1,503,521) | |
Total permanent equity | 5,234,612 | 5,208,102 | |
Total liabilities, temporary equity and permanent equity | 30,074,858 | 19,007,675 | |
Variable Interest Entity, Primary Beneficiary | |||
Assets | |||
Restricted cash and restricted cash equivalents | 50,547 | 68,151 | |
Loans held for sale, at fair value | 502,757 | 931,701 | |
Loans held for investment, at fair value | 221,461 | 0 | |
Total assets | 774,765 | 999,852 | |
Deposits [Abstract] | |||
Accounts payable, accruals and other liabilities | 1,773 | 3,053 | |
Debt | 420,974 | 771,454 | |
Residual interests classified as debt | 7,396 | 17,048 | |
Total liabilities | $ 430,143 | $ 791,555 | |
[1] Redemption amount is $323,400 as of December 31, 2023 and 2022. Includes 100,000,000 non-voting common shares authorized and no non-voting common shares issued and outstanding as of December 31, 2023 and 2022. See Note 13. Equity for additional information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 01, 2021 | May 28, 2021 | Dec. 31, 2020 |
Investments in available-for-sale securities, fair value | $ 595,187 | $ 195,438 | ||||
Investments in available-for-sale securities, amortized cost | 596,757 | 203,418 | ||||
Loans held for investment, allowance for credit loss | 54,695 | 40,788 | ||||
Other assets, allowance for credit loss | $ 1,837 | $ 2,785 | $ 2,292 | |||
Redeemable preferred stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0.0000025 | |||
Redeemable preferred stock, shares authorized (in shares) | 100,000,000 | 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 | 3,234,000 | 469,150,522 | ||
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) | 975,861,793 | 933,896,120 | ||||
Common stock, shares outstanding (in shares) | 975,861,793 | 933,896,120 | ||||
Redemption amount | $ 323,400 | $ 323,400 | ||||
SoFi Technologies | ||||||
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) | 975,861,793 | 933,896,120 | ||||
Common stock, shares outstanding (in shares) | 975,861,793 | 933,896,120 | ||||
Redemption amount | $ 323,400 | $ 323,400 | ||||
Nonvoting Common Stock | ||||||
Common stock, par value (in dollars per share) | $ 0.0001 | |||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||
Common stock, shares issued (in shares) | 0 | 0 | ||||
Common stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income | |||
Loans and securitizations | $ 1,944,128 | $ 759,504 | $ 351,971 |
Other | 106,939 | 13,867 | 3,049 |
Total interest income | 2,051,067 | 773,371 | 355,020 |
Interest expense | |||
Securitizations and warehouses | 244,220 | 110,127 | 90,485 |
Deposits | 507,820 | 59,793 | 0 |
Corporate borrowings | 36,833 | 18,438 | 10,345 |
Other | 454 | 917 | 1,946 |
Total interest expense | 789,327 | 189,275 | 102,776 |
Net interest income | 1,261,740 | 584,096 | 252,244 |
Noninterest income | |||
Loan origination, sales, and securitizations | 371,812 | 565,372 | 482,764 |
Servicing | 37,328 | 43,547 | (2,281) |
Technology products and solutions | 323,972 | 304,901 | 191,847 |
Other | 127,937 | 75,619 | 60,298 |
Total noninterest income | 861,049 | 989,439 | 732,628 |
Total net revenue | 2,122,789 | 1,573,535 | 984,872 |
Noninterest expense | |||
Technology and product development | 511,419 | 405,257 | 276,087 |
Sales and marketing | 719,400 | 617,823 | 426,875 |
Cost of operations | 379,998 | 313,226 | 256,980 |
General and administrative | 511,011 | 501,618 | 498,534 |
Goodwill impairment | 247,174 | 0 | 0 |
Provision for credit losses | 54,945 | 54,332 | 7,573 |
Total noninterest expense | 2,423,947 | 1,892,256 | 1,466,049 |
Loss before income taxes | (301,158) | (318,721) | (481,177) |
Income tax benefit (expense) | 416 | (1,686) | (2,760) |
Net loss | (300,742) | (320,407) | (483,937) |
Other comprehensive income (loss) | |||
Unrealized gains (losses) on available-for-sale securities, net | 6,410 | (7,260) | (1,351) |
Foreign currency translation adjustments, net | 677 | 435 | 46 |
Total other comprehensive income (loss) | 7,087 | (6,825) | (1,305) |
Comprehensive loss | $ (293,655) | $ (327,232) | $ (485,242) |
Loss per share (Note 19) | |||
Loss per share - basic (in dollars per share) | $ (0.36) | $ (0.40) | $ (1) |
Loss per share - diluted (in dollars per share) | $ (0.36) | $ (0.40) | $ (1) |
Weighted average common stock outstanding - basic (in shares) | 945,024,160 | 900,886,113 | 526,730,261 |
Weighted average common stock outstanding - diluted (in shares) | 945,024,160 | 900,886,113 | 526,730,261 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Temporary Equity and Permanent Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (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 | 246,787 | 246,787 | ||||
Equity-based payments to non-employees (in shares) | 18,058 | |||||
Equity-based payments to non-employees | 360 | 360 | ||||
Vesting of RSUs (in shares) | 16,427,162 | |||||
Vesting of RSUs | 0 | $ 2 | (2) | |||
Stock withheld related to taxes on vested RSUs (in shares) | (2,405,588) | |||||
Stock withheld related to taxes on vested RSUs | (42,644) | (42,644) | ||||
Exercise of common stock options (in shares) | 8,523,468 | |||||
Exercise of common stock options | 25,154 | 25,154 | ||||
Stock issued upon conversion (in shares) | 450,832,666 | |||||
Stock issued upon conversion | 2,702,569 | $ 45 | 2,702,524 | |||
Redeemable preferred stock dividends | (40,426) | (40,426) | ||||
Issuance of contingently issuable stock (in shares) | 1,601,781 | |||||
Conversion of common stock warrants issued in connection with Business Combination and PIPE Investment into permanent equity | 185,762 | 185,762 | ||||
Issuance of common stock related to exercise of warrants (in shares) | 15,193,668 | |||||
Issuance of common stock related to exercise of warrants | 95,047 | $ 2 | 95,045 | |||
Conversion of redeemable preferred stock warrants into permanent equity | 161,775 | 161,775 | ||||
Issuance of common stock in connection with Business Combination and PIPE Investment (in shares) | 222,878,889 | |||||
Issuance of common stock in connection with Business Combination and PIPE Investment | 1,789,601 | $ 22 | 1,789,579 | |||
Costs directly attributable to the issuance of common stock in connection with Business Combination and PIPE Investment | (27,539) | (27,539) | ||||
Change in par for historical SoFi common stock | 0 | $ 12 | (12) | |||
Purchase of capped calls | (113,760) | (113,760) | ||||
Net loss | (483,937) | (483,937) | ||||
Other comprehensive income (loss), net of taxes | (1,305) | (1,305) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 828,154,462 | |||||
Ending balance at Dec. 31, 2021 | $ 4,377,329 | $ 83 | 5,561,831 | (1,471) | (1,183,114) | |
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 | ||||||
Cancellation of redeemable preferred stock related to a business combination (in shares) | (83,856) | |||||
Cancellation of redeemable preferred stock related to a business combination | $ (743) | |||||
Conversion of redeemable preferred stock to common stock (in shares) | (450,832,666) | |||||
Conversion of redeemable preferred stock to common stock | $ (2,702,569) | |||||
Repurchase of redeemable common stock (in shares) | (15,000,000) | |||||
Repurchase of redeemable common stock | $ (150,000) | |||||
Temporary equity, ending balance (in shares) at Dec. 31, 2021 | 3,234,000 | |||||
Temporary equity, ending balance at Dec. 31, 2021 | $ 320,374 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 328,571 | 328,571 | ||||
Equity-based payments to non-employees (in shares) | 100,000 | |||||
Equity-based payments to non-employees | 0 | |||||
Vesting of RSUs (in shares) | 23,183,000 | |||||
Vesting of RSUs | 0 | $ 2 | (2) | |||
Stock withheld related to taxes on vested RSUs (in shares) | (1,196,691) | |||||
Stock withheld related to taxes on vested RSUs | (8,983) | (8,983) | ||||
Exercise of common stock options (in shares) | 1,955,031 | |||||
Exercise of common stock options | 2,610 | 2,610 | ||||
Issuance of common stock in acquisition (in shares) | 81,700,318 | |||||
Issuance of common stock in acquisition | 873,377 | $ 8 | 873,369 | |||
Vested awards assumed in acquisition | 2,855 | 2,855 | ||||
Redeemable preferred stock dividends | (40,425) | (40,425) | ||||
Net loss | (320,407) | (320,407) | ||||
Other comprehensive income (loss), net of taxes | $ (6,825) | (6,825) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 933,896,120 | 933,896,120 | ||||
Ending balance at Dec. 31, 2022 | $ 5,208,102 | $ 93 | 6,719,826 | (8,296) | (1,503,521) | |
Temporary equity, ending balance (in shares) at Dec. 31, 2022 | 3,234,000 | |||||
Temporary equity, ending balance at Dec. 31, 2022 | [1] | $ 320,374 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 302,342 | 302,342 | ||||
Vesting of RSUs (in shares) | 33,564,543 | |||||
Vesting of RSUs | 0 | $ 3 | (3) | |||
Stock withheld related to taxes on vested RSUs (in shares) | (1,866,434) | |||||
Stock withheld related to taxes on vested RSUs | $ (15,300) | (15,300) | ||||
Exercise of common stock options (in shares) | 796,883 | 796,883 | ||||
Exercise of common stock options | $ 1,145 | 1,145 | ||||
Common stock retired (in shares) | (19,319) | |||||
Stock issued upon conversion (in shares) | 9,490,000 | |||||
Stock issued upon conversion | 72,403 | $ 1 | 72,402 | |||
Redeemable preferred stock dividends | (40,425) | (40,425) | ||||
Net loss | (300,742) | (300,742) | ||||
Other comprehensive income (loss), net of taxes | $ 7,087 | 7,087 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 975,861,793 | 975,861,793 | ||||
Ending balance at Dec. 31, 2023 | $ 5,234,612 | $ 97 | $ 7,039,987 | $ (1,209) | $ (1,804,263) | |
Temporary equity, ending balance (in shares) at Dec. 31, 2023 | 3,234,000 | |||||
Temporary equity, ending balance at Dec. 31, 2023 | [1] | $ 320,374 | ||||
[1] Redemption amount is $323,400 as of December 31, 2023 and 2022. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net loss | $ (300,742,000) | $ (320,407,000) | $ (483,937,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation expense | 271,216,000 | 305,994,000 | 239,011,000 |
Depreciation and amortization | 201,416,000 | 151,360,000 | 101,568,000 |
Goodwill impairment | 247,174,000 | 0 | 0 |
Deferred debt issuance and discount expense | 20,104,000 | 18,292,000 | 18,292,000 |
Gain on extinguishment of convertible debt | (14,574,000) | 0 | 0 |
Provision for credit losses | 54,945,000 | 54,332,000 | 7,573,000 |
Deferred income taxes | (15,828,000) | (3,498,000) | 1,204,000 |
Fair value changes in loans held for investment | (44,007,000) | 0 | 0 |
Fair value changes in residual interests classified as debt | 425,000 | 6,608,000 | 22,802,000 |
Fair value changes in securitization investments | (48,000) | 13,600,000 | (6,538,000) |
Fair value changes in warrant liabilities | 0 | 0 | 107,328,000 |
Equity method investment earnings | 0 | 0 | 261,000 |
Other | (14,046,000) | 13,426,000 | (12,467,000) |
Changes in operating assets and liabilities: | |||
Changes in loans held for sale, net | (7,779,008,000) | (7,463,474,000) | (1,308,329,000) |
Changes in loans previously classified as held for sale, net | 140,856,000 | 0 | 0 |
Servicing assets | (31,604,000) | 18,405,000 | (18,662,000) |
Other assets | (5,506,000) | (56,861,000) | (10,700,000) |
Accounts payable, accruals and other liabilities | 42,088,000 | 6,365,000 | (9,022,000) |
Related party notes receivable interest income | 0 | 0 | 1,399,000 |
Net cash used in operating activities | (7,227,139,000) | (7,255,858,000) | (1,350,217,000) |
Investing activities | |||
Purchases of property, equipment and software | (111,409,000) | (93,201,000) | (52,261,000) |
Capitalized software development costs | (9,783,000) | (10,532,000) | 0 |
Purchases of available-for-sale investments | (800,507,000) | (44,974,000) | (246,372,000) |
Proceeds from sales of available-for-sale investments | 265,634,000 | 23,497,000 | 52,742,000 |
Proceeds from maturities and paydowns of available-for-sale investments | 153,828,000 | 15,240,000 | 4,799,000 |
Changes in loans held for investment, net | (1,362,418,000) | (173,728,000) | 0 |
Proceeds from securitization investments | 108,291,000 | 118,825,000 | 247,058,000 |
Proceeds from non-securitization investments | 5,354,000 | 0 | 109,534,000 |
Purchases of non-securitization investments | (66,553,000) | 0 | (22,000,000) |
Acquisition of businesses, net of cash acquired | (72,301,000) | 0 | |
Acquisition of businesses, net of cash acquired | 58,540,000 | ||
Proceeds from repayment of related party notes receivable | 0 | 0 | 16,693,000 |
Net cash (used in) provided by investing activities | (1,889,864,000) | (106,333,000) | 110,193,000 |
Financing activities | |||
Net change in deposits | 11,231,904,000 | 7,152,975,000 | 0 |
Net change in debt facilities | 180,554,000 | 1,418,456,000 | |
Net change in debt facilities | (1,186,880,000) | ||
Proceeds from other debt issuances | 339,995,000 | 439,990,000 | 1,191,908,000 |
Repayment of other debt | (799,859,000) | (516,363,000) | (912,890,000) |
Payment of debt issuance costs | (11,903,000) | (8,287,000) | (9,465,000) |
Taxes paid related to net share settlement of share-based awards | (15,300,000) | (8,983,000) | (42,644,000) |
Proceeds from stock option exercises | 1,145,000 | 2,610,000 | 25,154,000 |
Payment of redeemable preferred stock dividends | (40,425,000) | (40,425,000) | (40,426,000) |
Finance lease principal payments | (509,000) | (488,000) | (516,000) |
Purchases of common stock | 0 | 0 | (526,000) |
Redemptions of redeemable common and preferred stock | 0 | 0 | (282,859,000) |
Proceeds from Business Combination and PIPE Investment | 0 | 0 | 1,989,851,000 |
Payment of costs directly attributable to the issuance of common stock in connection with Business Combination and PIPE Investment | 0 | 0 | (26,951,000) |
Proceeds from warrant exercises | 0 | 0 | 95,047,000 |
Purchase of capped calls | 0 | 0 | (113,760,000) |
Payment of deferred equity costs | 0 | 0 | (56,000) |
Net cash provided by financing activities | 10,885,602,000 | 8,439,485,000 | 684,987,000 |
Effect of exchange rates on cash and cash equivalents | 677,000 | 571,000 | 46,000 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 1,769,276,000 | 1,077,865,000 | (554,991,000) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,846,302,000 | 768,437,000 | 1,323,428,000 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 3,615,578,000 | 1,846,302,000 | 768,437,000 |
Reconciliation to amounts on consolidated balance sheets (as of period end) | |||
Cash and cash equivalents | 3,085,020,000 | 1,421,907,000 | 494,711,000 |
Restricted cash and restricted cash equivalents | 530,558,000 | 424,395,000 | 273,726,000 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 3,615,578,000 | 1,846,302,000 | 768,437,000 |
Supplemental cash flow information | |||
Interest paid | 720,163,000 | 150,866,000 | 94,795,000 |
Income taxes paid, net | 14,326,000 | 2,567,000 | 1,759,000 |
Supplemental non-cash investing and financing activities | |||
Deposits credited but not yet received in cash | 67,257,000 | 31,305,000 | 0 |
Deconsolidation of securitization and residual debt | 92,914,000 | 99,695,000 | 0 |
Extinguishment of convertible notes by issuance of common stock | 87,047,000 | 0 | 0 |
Securitization investments acquired via loan transfers | 18,985,000 | 0 | 118,274,000 |
Derecognition of securitization investments | 5,325,000 | 40,933,000 | 0 |
Deposits assumed in acquisition | 0 | 158,016,000 | 0 |
Loans held for investment received in acquisition | 0 | 84,485,000 | 0 |
Available-for-sale securities received in acquisition | $ 0 | $ 10,014,000 | $ 0 |
Organization, Summary of Signif
Organization, Summary of Significant Accounting Policies and New Accounting Standards | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Summary of Significant Accounting Policies and New Accounting Standards | Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards Organization Social Finance, Inc. (“Social Finance”) entered into a merger agreement (the “Agreement”) with 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”. 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 and financial services strategy to offer personal loans, home loans and credit cards. The Company also developed additional 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 through the acquisition of 8 Limited, 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 through the acquisition of Galileo. During 2022, the Company became a bank holding company and began operating as SoFi Bank, National Association, through its acquisition of Golden Pacific Bancorp, Inc., and expanded its platform to include a cloud-native digital and core banking platform with customers in Latin America through its acquisition of Technisys S.A., allowing the Company to expand its technology platform services to a broader international market. During 2023, the Company acquired Wyndham Capital Mortgage, a fintech mortgage lender. For additional information on our recent business combinations, see Note 2. Business Combinations . For additional information on our reportable segments, see Note 20. Business Segment and Geographic Information . Summary of Significant Accounting Policies Basis of Presentation The 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 consolidated financial statements were prepared in conformity with GAAP and in accordance with the rules and regulations of the SEC. In our consolidated financial statements, we made the following presentation changes in 2023: • in our consolidated statements of operations and comprehensive loss, (i) combined the financial statement line items for interest income—loans and interest income—securitizations and presented within interest income—loans and securitizations ; and • in our consolidated statements of operations and comprehensive loss, (i) combined the financial statement line items for noninterest income—loan origination and sales and noninterest income—securitizations and presented within noninterest income—loan origination, sales and securitizations . In all instances, the respective prior period amounts were recast to conform to the current period presentation. Use of Judgments, Assumptions and Estimates The preparation of our consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the reported amounts of assets, liabilities, revenue, expenses, and the disclosures of contingent assets and liabilities. These estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions, and the differences could be material. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances. These assumptions and estimates include, but are not limited to, the following: (i) fair value measurements, (ii) business combinations, and (iii) goodwill. Business Combinations We account for acquisitions of entities or asset groups that qualify as businesses using the acquisition method of accounting. Purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date, which are measured in accordance with fair value measurement accounting principles. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. The excess of the total purchase consideration over the fair value of the identified net assets acquired is recognized as goodwill. The results of the acquired businesses are included in our results of operations beginning from the date of acquisition. Acquisition-related costs are expensed as incurred. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the allocation of purchase consideration and to the fair values of assets acquired and liabilities assumed to the extent that additional information becomes available. After this period, any subsequent adjustments are recorded in the consolidated statements of operations and comprehensive loss. Variable Interest Entities We enter into arrangements in which we originate loans, establish a SPE, and transfer loans to the SPE. We retain the servicing rights of those loans and hold additional interests in the SPE. We evaluate each such arrangement to determine whether we have a variable interest. If we determine that we have a variable interest in an SPE, we then determine whether the SPE is a VIE. If the SPE is a VIE, we assess whether we are the primary beneficiary of the VIE, such that we must consolidate the VIE on our consolidated balance sheets. To determine if we are the primary beneficiary, we identify the most significant activities and determine who has the power over those activities, and who absorbs the variability in the economics of the VIE. We periodically reassess our involvement with each VIE in which we have a variable interest. We monitor matters related to our ability to control economic performance, such as management of the SPE and its underlying loans, contractual changes in the services provided, the extent of our ownership, and the rights of third parties to terminate us as the VIE servicer. In addition, we monitor the financial performance of each VIE for indications that we may or may not have the right to absorb benefits or the obligation to absorb losses associated with variability in the financial performance of the VIE that could potentially be significant to that VIE, which we define as a variable interest of greater than 10%. A significant change to the pertinent rights of us or other parties, or a significant change to the ranges of possible financial performance outcomes used in our assessment of the variability of cash flows due to us, could impact the determination of whether or not a VIE should be consolidated in future periods. VIE consolidation and deconsolidation may lead to increased volatility in our financial results and impact period-over-period comparability. Our maximum exposure to loss as a result of our involvement with consolidated VIEs is limited to our investment, which is eliminated in consolidation. 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 consolidated VIEs. Refer to Note 7. Securitization and Variable Interest Entities for more details regarding our consolidated VIEs. Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a three-level fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available and to minimize the use of unobservable inputs when determining fair value. The three levels are defined as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date. • Level 2 — Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or observable inputs other than quoted prices. • Level 3 — Unobservable inputs for assets or liabilities for which there is little or no market data, which requires us to develop our own assumptions. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the asset or liability. A financial instrument’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Instruments are categorized in Level 3 of the fair value hierarchy based on the significance of unobservable factors in the overall fair value measurement. As a result, the related gains and losses for assets and liabilities within the Level 3 category presented in Note 15. Fair Value Measurements may include changes in fair value that are attributable to both observable and unobservable inputs. We utilize third-party valuation specialists to perform a valuation of these Level 2 and Level 3 financial instruments on a monthly basis with quarterly oversight by a Valuation Working Group established by the Company that comprises leaders across finance, capital markets and accounting. Transfers of Financial Assets The transfer of an entire financial asset is accounted for as a sale if all of the following conditions are met: • the financial asset is isolated from the transferor and its consolidated affiliates as well as its creditors, even in bankruptcy or other receivership; • the transferee or beneficial interest holders have the right to pledge or exchange the transferred financial asset; and • the transferor, its consolidated affiliates and its agents do not maintain effective control over the transferred financial asset. Loan sales are aggregated in the financial statements due to the similarity of both the loans transferred and servicing arrangements. The portion of our income relating to ongoing servicing and the fair value of our servicing rights are dependent upon the performance of the sold loans. We measure the gain or loss on the sale of financial assets as the net assets received from the sale less the carrying amount of the loans sold. The net assets received from the sale represent the fair value of any assets obtained or liabilities incurred as part of the transaction, including but not limited to cash, servicing assets, retained securitization investments and recourse obligations. When securitizing loans, we employ a two-step transaction that includes the isolation of the underlying loans in a trust and the sale of beneficial interests in the trust to a bankruptcy-remote entity. Transfers of financial assets that do not qualify for sale accounting are reported as secured borrowings. Accordingly, the related assets remain on our consolidated balance sheets and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds received from these transfers are reported as liabilities, with related interest expense recognized over the life of the related secured borrowing. As a component of the loan sale agreements, we make certain representations to third parties that purchase our previously-held loans, some of which include GSE repurchase requirements and all of which are standard in nature and do not constrain our ability to recognize a sale for accounting purposes. Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans arising from these representations are accrued if probable and estimable. We establish a loan repurchase liability, which is based on historical experience and any current developments which would make it probable that we would buy back loans previously sold to third parties at the historical sales price. The loan repurchase liability is presented within accounts payable, accruals and other liabilities in the consolidated balance sheets, with the corresponding charges recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. 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 primarily include 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 Loan Classification We classify loans as held for sale or held for investment based on management’s assessment of its intent and ability to hold the loans for the foreseeable future or until maturity, which may change over time. A loan that is initially designated as held for sale or held for investment may be reclassified when our intent for that loan changes. The accounting and measurement framework for loans differs depending on the loan classification and whether we elect the fair value option. The presentation within the consolidated statements of cash flows is based on management’s intent at origination. Cash flows related to loans that are originated with the intent to sell are included in cash flows from operating activities in the consolidated statements of cash flows. Cash flows related to loans that are originated with the intent to hold for investment are included in cash flows from investing activities in the consolidated statements of cash flows. Our loan portfolio primarily consists of: (i) personal loans, student loans and home loans, which are measured at fair value and held for sale or held for investment, and (ii) senior secured loans, credit cards, and commercial and consumer banking loans, which are measured at amortized cost and held for investment. 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 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. Therefore, these loans are carried at fair value on a recurring basis. During the year ended December 31, 2023, we transferred home loans out of Level 3 and into Level 2 due to an update to pricing sources utilized by third-party valuation specialists, as part of the integration of Wyndham. Other loans do not trade in an active market with readily observable prices and are classified as Level 3. We determine the fair value of our loans using a discounted cash flow methodology, while also considering market data as it becomes available. Direct fees, which primarily relate to personal and home loan originations, are recognized in earnings as earned and are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. Direct loan origination costs are recognized in earnings as incurred and are recorded within noninterest expense—cost of operations in the consolidated statements of operations and comprehensive loss. 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, sales, and securitizations in the consolidated statements of operations and comprehensive loss. We record cash flows related to loans held for sale within cash flows from operating activities in the consolidated statements of cash flows. Securitized loans are assets held by consolidated SPEs as collateral for bonds issued, for which fair value changes are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. Gains or losses recognized upon deconsolidation of a VIE are also recorded within noninterest income—loan origination, sales, and securitizations . We consider a loan to be delinquent when the borrower has not made the scheduled payment amount within one day after the scheduled payment date, provided the borrower is not in school or in deferment, forbearance or within an agreed-upon grace period. Loan deferment is a provision within student loan contracts that permits the borrower to defer payments while enrolled at least half time in school. During the deferment period, interest accrues on the loan balance and is capitalized to the loan when the loan enters repayment status, which begins when the student no longer qualifies for deferment. Forbearance applies to student loans, personal loans and home loans. A borrower in repayment may generally request forbearance for reasons including a FEMA-declared disaster, unemployment, economic hardship or general economic uncertainty. Forbearance typically cannot exceed a total of 12 months over the life of the loan. If forbearance is granted, interest continues to accrue during the forbearance period and is capitalized to the loan when the borrower resumes making payments. At the conclusion of a forbearance period, the contractual monthly payment is recalculated and is generally higher as a result. For personal loans and student loans, delinquent loans are charged off after 120 days of delinquency or on the date of confirmed loss. For home loans, delinquent loans are charged off after 180 days of delinquency or on the date of confirmed loss. For all loans, we stop accruing interest and reverse all accrued but unpaid interest on the date of charge-off. Additional information about our loans held for sale is included in Note 4. Loans , Note 7. Securitization and Variable Interest Entities and Note 15. Fair Value Measurements . Loans Measured at Amortized Cost For our senior secured and commercial and consumer banking loans, direct loan origination costs are deferred and amortized using the effective interest method over the contractual term of the loans within interest income—loans and securitizations in the consolidated statements of operations and comprehensive loss. As of December 31, 2023, the remaining balance of deferred costs was immaterial. We present accrued interest for loans measured at amortized cost within loans held for investment, at amortized cost in the consolidated balance sheets. The amortized cost of these loans is subject to our allowance for credit losses methodology described within “ Allowance for Credit Losses ” herein. We record cash flows related to loans held for investment within cash flows from investing activities in the consolidated statements of cash flows. Credit card receivables are reported at the amounts due from members, including accrued interest and fees, and unamortized net deferred loan origination fees and costs. Loan origination fees and direct loan origination costs are amortized on a straight-line basis over a 12-month period as adjustments to income through interest income—loans and securitizations in the consolidated statements of operations and comprehensive loss. Credit card balances are reported as delinquent when they become 30 or more days past due. Credit card balances are charged off after 180 days of delinquency or on the date of the confirmed loss, at which time we stop accruing interest and fees and reverse all accrued but unpaid interest and fees through interest income as of such date. When a credit card balance is charged off, we record a reduction to the allowance and the credit card balance. When recovery payments are received against charged off credit card balances, we record a direct reduction to the provision for credit losses. Credit card receivables associated with alleged or potential fraudulent transactions are charged off through noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. 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. For commercial loans, performance is monitored on an individual loan basis and delinquent loans are charged off when collectability of interest and principal on the loan is not reasonably assured. Senior secured loans are term loan arrangements secured by underlying loans owned by the debtor. Senior secured loans are reported as delinquent when they become 30 or more days past due, and are charged off after 120 days of delinquency or on the date of confirmed loss. Financial Guarantees We entered into a credit default swap related to our student loans which meets the definition of a financial guarantee and is excluded from derivative accounting treatment. We apply the insurance contract claim method by deferring the full estimated amount of premiums paid and payable at inception. The deferred premium is estimated using a discounted cash flow model considering the expected performance of the reference portfolio and recorded within other assets and accounts payable, accruals and other liabilities in the consolidated balance sheets. Deferred premiums are amortized based on actual premiums due and recognized in noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. We recognize a receivable and related earnings when a loss event occurs, we have the right to submit a claim, and recovery is probable. Allowance for Credit Losses We primarily evaluate expected credit losses under the current expected credit loss model for the following financial assets: (i) cash equivalents and restricted cash equivalents, (ii) accounts receivable from contracts with customers, inclusive of servicing related receivables, (iii) loans measured at amortized cost, and (iv) investments in AFS debt securities. Our approaches to measuring the allowance for credit losses on the applicable financial assets are as follows: Cash equivalents and restricted cash equivalents : Our cash equivalents and restricted cash equivalents are short-term in nature and of high credit quality; therefore, we determined that our exposure to credit losses over the life of these instruments was immaterial. Accounts receivable from contracts with customers : Accounts receivable from contracts with customers as of the balance sheet dates, all of which are short-term in nature, are recorded at their original invoice amounts reduced by any allowance for credit losses. We assess the risk of loss for each individual customer, even when the risk is remote. Certain of our historical accounts receivable balances did not have any write-offs. We use the aging method and historical loss rates as a basis for estimating the percentage of current and delinquent accounts receivable balances that will result in credit losses. We consider whether the conditions at the measurement date and reasonable and supportable forecasts about future conditions, such as customer creditworthiness, current economic conditions, customer location, expectations of near-term economic trends and changes in customer payment terms and collection trends, warrant an adjustment to our historical loss experience. Based on this analysis, we determined that our historical loss rates remained most indicative of our lifetime expected losses. We record the provision for credit losses on accounts receivable from contracts with customers within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. When we determine that a receivable is not collectible, we write off the uncollectible amount as a reduction to both the allowance and the gross asset balance. Recoveries are recorded when received and credited to the provision for credit losses. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for credit losses being recognized in the period in which the change occurs. See Note 5. Allowance for Credit Losses for a rollforward of the allowance for credit losses related to our accounts receivable. Senior secured loans : We evaluate the credit quality of our senior secured loan portfolio based on the fair value of underlying collateral, which are subject to the requirements of our loan underwriting process and risk models upon origination. This analysis is performed on a quarterly basis utilizing a third-party valuation specialist, whereby the fair value of underlying collateral is reassessed based on relevant information such as funded loan rates and historical loss experience, among other factors. An allowance for credit losses is required when there is an expected credit loss after considering the fair value of the collateral as well as any anticipated future changes in the underlying collateral. As of and for the year ended December 31, 2023, we determined that our expected exposure to credit losses was immaterial, and as such did not recognize an allowance for credit losses on senior secured loans. Credit cards : We segment pools of credit cards based on consumer credit score bands as measured using FICO scores, which are obtained at origination of the account and are refreshed monthly thereafter, and also by delinquency status, which may be adjusted using other risk-differentiating attributes to model charge-off probabilities and the average life over which expected credit losses may occur for the credit cards within each pool. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data. When necessary, we apply separate credit loss assumptions to assets that have deteriorated in credit quality such that they no longer share similar risk characteristics with other assets in the same FICO score band. We either estimate the allowance for credit losses on such non-performing assets individually based on individual risk characteristics or as part of a distinct pool of assets that shares similar risk characteristics. We reassess our credit card pools periodically to confirm that all loans within each pool continue to share similar risk characteristics. We establish an allowance within each pool of credit cards utilizing the risk model described above, which may then be adjusted for current conditions and reasonable and supportable forecasts of future conditions, including economic conditions. We apply the probability-of-default and loss-given-default assumptions to the drawn balance of credit cards within each pool to estimate the lifetime expected credit losses within each pool, which are then aggregated to determine the allowance for credit losses. We do not measure credit losses on the undrawn credit exposure, as such undrawn credit exposure is unconditionally cancellable by us. Additionally, management evaluates whether to include qualitative reserves to cover losses that are expected but may not be adequately represented in the quantitative methods or the economic assumptions. The qualitative reserves address possible limitations within the models, such as external conditions including regulatory requirements, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions. We record the provision for credit losses on credit cards within noninterest expense—provision for credit losses in the consolidated statements of operations and comprehensive loss. We elected to exclude interest on credit cards from the measurement of our allowance, as our policy allows for accrued interest to be reversed in a timely manner. Further, we elected the practical expedient to exclude the accrued interest component of our credit cards from the quantitative disclosures presented. See Note 5. Allowance for Credit Losses for a rollforward of the allowance for credit losses related to our credit cards. Commercial and consumer banking loans : We evaluate the credit quality of our commercial and consumer banking loan portfolio 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. The allowance for credit losses is determined at a portfolio level and estimated based on weighted average remaining maturity and annualized loss rate according to the loan’s regulatory loan type, risk rating classification and historical loss rates in the industry. This analysis is performed on an ongoing basis as new information is obtained. See Note 5. Allowance for Credit Losses for a rollforward of the allowance for credit losses related to our commercial and consumer banking loans. Investments in AFS debt securities : Credit-related impairment is recognized as an allowance for credit losses in the consolidated balance sheets with a corresponding adjustment to noninterest expense—provision for credit losses in the statements of operations and comprehensive loss. For certain securities that are guaranteed by the U.S. Treasury or government agencies, or sovereign entities of high credit quality, we concluded that there is no risk of credit-related impairment due to the nature of the counterparties and history of no credit losses. For other investments in AFS debt securities, factors considered in evaluating credit losses include: (i) adverse conditions related to the macroeconomic environment or the industry, geographic area or financial condition of the issuer, (ii) other credit indicators of the security, such as external credit ratings, and (iii) payment structure of the security. For the year ended December 31, 2023, we did not recognize an allowance for credit losses on impaired investments in AFS debt securities. Servicing Rights Each time we enter into a servicing agreement, either in connection with transfers of our financial assets or in connection with a referral fulfillment arrangement in which we are a sub-servicer for financial assets that we do not legally own, we determine whether we should record a servicing asset or servicing liability. We el |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Note 2. Business Combinations Merger with Social Capital Hedosophia Holdings Corp. V On January 7, 2021, Social Finance entered into an agreement by and among Social Finance, SCH, a Cayman Islands exempted company limited by shares, and Plutus Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of SCH (“Merger Sub”), pursuant to which Merger Sub merged with and into Social Finance. Upon the Closing on May 28, 2021, the separate corporate existence of Merger Sub ceased and Social Finance survived the merger and became a wholly-owned subsidiary of SCH. On May 28, 2021, SCH also filed a notice of deregistration with the Cayman Islands Registrar of Companies, together with the necessary accompanying documents, and filed a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which SCH was domesticated as a Delaware corporation, changing its name from “Social Capital Hedosophia Holdings Corp. V” to “SoFi Technologies, Inc.” These transactions are collectively referred to as the “Business Combination”. The Business Combination was accounted for as a reverse recapitalization whereby SCH was determined to be the accounting acquiree and Social Finance to be the accounting acquirer. This accounting treatment was the equivalent of Social Finance issuing stock for the net assets of SCH, accompanied by a recapitalization whereby no goodwill or other intangible assets were recorded. Operations prior to the Business Combination are those of Social Finance. At the Closing, we received gross cash consideration of $764.8 million as a result of the reverse recapitalization, which was then reduced by: (i) a redemption of redeemable common stock (classified as temporary equity) of $150.0 million, (ii) a special payment made to our Series 1 preferred stockholders of $21.2 million (which was expensed as incurred), and (iii) our equity issuance costs of $27.5 million, consisting of advisory, legal, share registration and other professional fees, which were recorded within additional paid-in capital as a reduction of proceeds. In connection with the Business Combination, SCH entered into subscription agreements with certain investors (the “Third Party PIPE Investors”), whereby it issued 122,500,000 shares of common stock at $10.00 per share (“PIPE Shares”) for an aggregate purchase price of $1.225 billion (“PIPE Investment”), which closed simultaneously with the consummation of the Business Combination. Upon the Closing, the PIPE Shares were automatically converted into shares of SoFi Technologies common stock on a one-for-one basis. Upon the Closing, 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 Series 1 preferred stockholders) 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. Acquisition of Golden Pacific Bancorp, Inc. On February 2, 2022, we acquired 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”). The acquisition was not determined to be a significant acquisition. After closing the Bank Merger, we became a bank holding company and Golden Pacific began operating as SoFi Bank. We are duly registered as a bank holding company with the Federal Reserve. SoFi Bank is a national banking association whose primary federal regulator is the OCC. Deposit accounts of SoFi Bank are insured by 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. During 2022, we incurred costs associated with the litigation involving Golden Pacific as a plaintiff in excess of the Holdback Amount. Therefore, none of the Holdback Amount 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 dissenter’s rights appraisal claim. During the fourth quarter of 2023, the appraisal claim was settled and payment was released. 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 (the “Technisys Merger”). In the business combination, we acquired all of the outstanding equity interests in Technisys for a preliminary purchase consideration of $915.4 million. During the third quarter of 2022, we finalized the closing net working capital calculation specified in the merger agreement, which resulted in a reduction to the equity consideration of 155,794 shares, representing an adjustment to the total purchase consideration of $1,665, and a corresponding reduction to the carrying value of recognized goodwill. The remaining 442,274 shares that were held in escrow associated with the working capital calculation were released to the former Technisys shareholders. The finalized closing net working capital calculation did not impact the estimated fair values of the assets acquired and liabilities assumed in conjunction with the transaction. The following table presents the components of the total purchase consideration to acquire Technisys as of December 31, 2022: Fair value of common stock issued (1) $ 873,377 Amounts payable to settle vested employee performance awards 37,297 Fair value of awards assumed (2) 2,855 Settlement of pre-combination transactions between acquirer and acquiree 235 Total purchase consideration $ 913,764 ___________________ (1) Reflects the shares of SoFi common stock issued in the acquisition of 81,700,318, multiplied by the closing stock price of SoFi common stock on the closing date of the Technisys Merger. Additionally, these shares are inclusive of 6,305,595 shares that were held in escrow. (2) We contemporaneously converted outstanding performance awards into 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. We settled vested employee performance awards, which were a component of the purchase consideration above, with payments during the years ended December 31, 2023 and 2022 of $19,656 and $17,641, respectively. During the year ended December 31, 2023, we released 6,259,736 escrow shares during the second and fourth quarters of 2023. The remaining 45,859 shares continue to be held in escrow pending resolution of outstanding indemnification claims by SoFi. The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations as if the business combination had occurred on January 1, 2020: Year Ended December 31, 2022 2021 Total net revenue $ 1,584,439 $ 1,055,219 Net loss (311,512) (512,785) 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, 2020; • 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. Acquisition of Wyndham Capital Mortgage On April 3, 2023, we acquired all of the outstanding equity interests in Wyndham for cash consideration. With the acquisition of Wyndham, a fintech mortgage lender, we broadened our suite of home loan products and now manage the technology for a digitized mortgage experience. The acquisition is being accounted for as a business combination. The purchase consideration is being allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date. The excess of the total purchase consideration over the fair value of the net assets acquired is allocated to goodwill, which is expected to be deductible for tax purposes. The fair value estimates are subject to change for up to one year after the acquisition date as additional information becomes available. The acquisition was not determined to be a significant acquisition. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3. Revenue 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. 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 provided over the contract term. These implementation fees are recognized ratably over the contract life. Commencing in March 2022 with the Technisys Merger, we earn subscription and service fees for providing software licenses and associated services, including implementation and maintenance. 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. We recognize revenue related to software licenses at a point in time upon delivery of the license and the close of the user-acceptance testing period. When implementation services are distinct, we recognize revenue over time during the implementation period. We recognize maintenance services ratably over the contractual maintenance term. If a fixed upfront payment provides a material right to the customer, we recognize revenue associated with the material right over the period of benefit associated with the right to subscribe or renew a subscription, which is typically the product life. We allocate fees charged for software and related services to our performance obligations on the basis of the relative standalone selling price. The standalone selling prices either represent the prices at which we separately sell each license or service or are estimated using available information, such as market conditions and internal pricing policies. The standalone selling price of the software license and maintenance are determined based on the complexity and size of the license. Payments to customers : We may provide incentives to our technology platform customers, which may be payable up front or applied to future or past technology products and solutions fees. Evaluating whether such incentives are payments to a customer requires judgment. When we determine that an incentive is consideration payable to a customer, the incentive is recorded as a reduction of revenue. Incentives that represent consideration payable to a customer may also contain variable consideration. Therefore, such incentives are constraints on the revenue expected to be realized. Upfront customer incentives are recorded as prepaid assets and presented within other assets in the consolidated balance sheets, and are applied against revenue in the period such incentives are earned by the customer. Any incentive in excess of cumulative revenue is expensed as a contract cost. Referrals We earn specified referral fees in connection with certain referral activities we facilitate through our platform. In one type of referral arrangement, we refer end users through our platform to third-party enterprise partners. Our referral fee is calculated as either a fixed price per successful referral or a percentage of the transaction volume between the enterprise partners and referred consumers. In another type of referral arrangement, we earn referral fulfillment fees for providing pre-qualified borrower referrals to a third-party partner who separately contracts with a loan originator. Our referral fees are based on the referred loan amount, subject to a referral fulfillment fee penalty if a loan is determined to be ineligible and becomes a charged-off loan as defined in the contract. We recognize revenue for each originated loan, less the estimated referral fulfillment fee penalty. The estimated referral fulfillment fee penalty was immaterial as of December 31, 2023 and 2022. Interchange We earn interchange fees from debit and credit cardholder transactions conducted through payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange is presented net of cardholder rewards associated with card transactions. Brokerage We earn fees in connection with facilitating investment-related transactions through our platform, which we refer to as brokerage revenue. Our brokerage revenue performance obligation is generally completely satisfied upon the completion of an investment-related transaction. In general, we act as the agent in these arrangements as we do not oversee the execution of the transactions and ultimately lack the requisite control. 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, as well as a reconciliation of total revenue from contracts with customers to total noninterest income . Revenue from contracts with customers is presented within noninterest income—technology products and solutions and noninterest income—other in the consolidated statements of operations and comprehensive loss. There were no revenues from contracts with customers attributable to our Lending segment for any of the years presented. Year Ended December 31, 2023 2022 2021 Financial Services Referrals $ 38,443 $ 36,052 $ 15,750 Interchange 35,247 17,391 10,642 Brokerage 21,127 15,446 22,733 Other (1) 2,647 2,245 5,541 Total financial services $ 97,464 $ 71,134 $ 54,666 Technology Platform (2) Technology services 319,845 299,379 191,847 Other (1) 4,145 6,583 1,205 Total technology platform 323,990 305,962 193,052 Total revenue from contracts with customers 421,454 377,096 247,718 Other Sources of Revenue Loan origination, sales, and securitizations 371,812 565,372 482,764 Servicing 37,328 43,547 (2,281) Other 30,455 3,424 4,427 Total other sources of revenue $ 439,595 $ 612,343 $ 484,910 Total noninterest income $ 861,049 $ 989,439 $ 732,628 _____________________ (1) Financial Services includes revenues from enterprise services and equity capital markets services. Technology Platform includes revenues from software licenses and associated services, and payment network fees for serving as a transaction card program manager for enterprise customers that are the program marketers for separate card programs. (2) Related to these technology products and solutions arrangements, we had deferred revenue of $5,718 and $10,028 as of December 31, 2023 and 2022, respectively, which are presented within accounts payable, accruals and other liabilities in the consolidated balance sheets. During the years ended December 31, 2023, 2022 and 2021, we recognized revenue of $8,327, $7,773 and $685, respectively, associated with deferred revenue within noninterest income—technology products and solutions in the consolidated statements of operations and comprehensive loss. Contract Balances As of December 31, 2023 and 2022, accounts receivable, net associated with revenue from contracts with customers was $60,466 and $61,226, respectively, which were reported within other assets |
Loans
Loans | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans | Note 4. Loans As of December 31, 2023, our loan portfolio consisted of (i) loans held for sale, including personal loans and home loans, which are measured at fair value under the fair value option, (ii) loans held for investment, including student loans, which are measured at fair value under the fair value option, and (iii) loans held for investment, including senior secured loans, credit cards, and commercial and consumer banking loans, which are measured at amortized cost. 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: December 31, 2023 2022 Loans held for sale Personal loans (1) $ 15,330,573 $ 8,610,434 Student loans (2) — 4,877,177 Home loans 66,198 69,463 Total loans held for sale, at fair value 15,396,771 13,557,074 Loans held for investment (3) Student loans (4) 6,725,484 — Total loans held for investment, at fair value 6,725,484 — Senior secured loans 446,463 — Credit card 272,628 209,164 Commercial and consumer banking: Commercial real estate 106,326 88,652 Commercial and industrial 6,075 7,179 Residential real estate and other consumer 4,667 2,962 Total commercial and consumer banking 117,068 98,793 Total loans held for investment, at amortized cost (3) 836,159 307,957 Total loans held for investment 7,561,643 307,957 Total loans $ 22,958,414 $ 13,865,031 _____________________ (1) Includes $502,757 and $663,004 of personal loans in consolidated VIEs as of December 31, 2023 and 2022, respectively. (2) Includes $268,697 of student loans in consolidated VIEs as of December 31, 2022. (3) See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 5. Allowance for Credit Losses for additional information on our loans at amortized cost as it pertains to the allowance for credit losses. (4) As of December 31, 2023, includes $2,459,103 of student loans covered by financial guarantees, and $221,461 of student loans in consolidated VIEs. Loans Measured at Fair Value The following table summarizes the aggregate fair value of our loans for which we elected the fair value option. See Note 15. Fair Value Measurements for the assumptions used in our fair value model. Personal Loans Student Loans Home Loans Total December 31, 2023 Unpaid principal $ 14,498,629 $ 6,445,586 $ 67,406 $ 21,011,621 Accumulated interest 114,541 34,357 92 148,990 Cumulative fair value adjustments 717,403 245,541 (1,300) 961,644 Total fair value of loans (1) $ 15,330,573 $ 6,725,484 $ 66,198 $ 22,122,255 December 31, 2022 Unpaid principal $ 8,283,400 $ 4,794,517 $ 77,705 $ 13,155,622 Accumulated interest 55,673 19,433 151 75,257 Cumulative fair value adjustments 271,361 63,227 (8,393) 326,195 Total fair value of loans (1) $ 8,610,434 $ 4,877,177 $ 69,463 $ 13,557,074 _____________________ (1) Each component of the fair value of loans is impacted by charge-offs during the period. Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due. The following table summarizes the aggregate fair value of loans 90 days or more delinquent. 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. Personal Loans Student Loans Home Loans Total December 31, 2023 Unpaid principal balance $ 81,591 $ 8,446 $ 495 $ 90,532 Accumulated interest 4,023 187 6 4,216 Cumulative fair value adjustments (1) (70,191) (5,021) (248) (75,460) Fair value of loans 90 days or more delinquent $ 15,423 $ 3,612 $ 253 $ 19,288 December 31, 2022 Unpaid principal balance $ 27,989 $ 6,435 $ — $ 34,424 Accumulated interest 1,207 304 — 1,511 Cumulative fair value adjustments (1) (25,022) (3,332) — (28,354) Fair value of loans 90 days or more delinquent $ 4,174 $ 3,407 $ — $ 7,581 __________________ (1) Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due. 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 of the transfer. When a transfer of financial assets qualifies as a sale, in many instances we have continuing 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 continuing 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 generally have no repurchase requirements related to transfers of personal loans, student loans and non-GSE home loans other than standard origination representations and warranties, for which we record a liability based on expected repurchase obligations. For GSE home loans, we have customary GSE repurchase requirements, which do not constrain sale treatment but result in a liability for the expected repurchase requirement. The following table summarizes our personal loan and student loan securitization transfers qualifying for sale accounting treatment. There were no loan securitization transfers qualifying for sale accounting treatment during the year ended December 31, 2022. Year Ended December 31, 2023 2021 Personal loans Fair value of consideration received: Cash $ 359,927 $ 1,050,062 Securitization investments 18,985 55,491 Servicing assets recognized 15,975 6,003 Repurchase liabilities recognized (113) — Total consideration 394,774 1,111,556 Aggregate unpaid principal balance and accrued interest of loans sold 375,770 1,054,171 Gain from loan sales $ 19,004 $ 57,385 Student loans Fair value of consideration received: Cash $ — $ 1,187,714 Securitization investments — 62,783 Servicing assets recognized — 36,948 Total consideration — 1,287,445 Aggregate unpaid principal balance and accrued interest of loans sold — 1,227,379 Gain from loan sales $ — $ 60,066 Deconsolidation of debt reflects the impacts of previously consolidated VIEs that became deconsolidated during the period because we no longer hold a significant financial interest in the underlying securitization entity, which can fluctuate from period to period. Gains and losses on deconsolidations are presented within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. During the year ended December 31, 2023, we had deconsolidation of debt on student loans of $100.3 million. During the year ended December 31, 2022, we had deconsolidation of debt on personal loans of $70.6 million and on student loans of $126.0 million. For all periods, the impact on earnings from these deconsolidations was immaterial. The following table summarizes our whole loan sales: Year Ended December 31, 2023 2022 2021 Personal loans Fair value of consideration received: Cash $ 567,904 $ 3,016,740 $ 3,373,655 Servicing assets recognized 30,168 21,925 21,811 Repurchase liabilities recognized (2,069) (7,351) (8,168) Total consideration received 596,003 3,031,314 3,387,298 Aggregate unpaid principal balance and accrued interest of loans sold 567,003 2,924,567 3,253,645 Realized gain $ 29,000 $ 106,747 $ 133,653 Student loans Fair value of consideration received: Cash $ 98,624 $ 883,859 $ 1,676,892 Servicing assets recognized 2,792 9,275 15,526 Repurchase liabilities recognized (16) (134) (300) Total consideration 101,400 893,000 1,692,118 Aggregate unpaid principal balance and accrued interest of loans sold 99,916 881,922 1,635,280 Realized gain $ 1,484 $ 11,078 $ 56,838 Home loans Fair value of consideration received: Cash $ 1,022,600 $ 1,057,596 $ 2,989,813 Servicing assets recognized 10,184 13,926 31,294 Repurchase liabilities recognized (1,765) (1,158) (3,288) Total consideration 1,031,019 1,070,364 3,017,819 Aggregate unpaid principal balance and accrued interest of loans sold 1,029,623 1,095,882 2,935,343 Realized gain (loss) $ 1,396 $ (25,518) $ 82,476 For certain transferred loans that qualified for sale accounting and are, therefore, off-balance sheet, we have continuing involvement through our servicing agreements. For such loans, our exposure to loss is generally limited to the extent we would be required to repurchase such a loan due to a breach of representations and warranties associated with the loan transfer or servicing contract. The following table presents information about the unpaid principal balances of loans originated by us and subsequently transferred, but with which we have continuing involvement: Personal Loans Student Loans Home Loans Total December 31, 2023 Loans in delinquency (30+ days past due) $ 52,813 $ 60,989 $ 24,193 $ 137,995 Total loans in delinquency 90,582 137,243 24,193 252,018 Total transferred loans serviced (1) 2,223,785 6,148,800 5,592,793 13,965,378 December 31, 2022 Loans in delinquency (30+ days past due) $ 64,654 $ 46,986 $ 16,510 $ 128,150 Total loans in delinquency 108,991 115,818 16,510 241,319 Total transferred loans serviced (1) 2,995,601 7,586,031 5,134,306 15,715,938 _____________________ (1) Total transferred loans serviced includes loans in delinquency, as well as loans in repayment, loans in-school/grace period/deferment (related to student loans), and loans in forbearance. The vast majority of total transferred loans serviced represent loans in repayment as of the dates indicated. The following table presents additional information about the servicing cash flows received and net charge-offs related to loans originated by us and subsequently transferred, but with which we have a continuing involvement: Year Ended December 31, 2023 2022 2021 Personal loans Servicing fees collected from transferred loans $ 20,577 $ 33,051 $ 34,421 Charge-offs, net of recoveries, of transferred loans 167,643 93,095 102,217 Student loans Servicing fees collected from transferred loans 27,401 35,203 46,657 Charge-offs, net of recoveries, of transferred loans 41,642 34,136 24,675 Home loans Servicing fees collected from transferred loans 14,530 12,893 8,749 Total Servicing fees collected from transferred loans $ 62,508 $ 81,147 $ 89,827 Charge-offs, net of recoveries, of transferred loans 209,285 127,231 126,892 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: Delinquent Loans Current 30–59 Days 60–89 Days ≥ 90 Days (1) Total Delinquent Loans Total Loans (2) December 31, 2023 Senior secured loans $ 445,733 $ — $ — $ — $ — $ 445,733 Credit card 297,612 5,451 4,829 11,802 22,082 319,694 Commercial and consumer banking: Commercial real estate 107,757 — — — — 107,757 Commercial and industrial 6,108 1 — 439 440 6,548 Residential real estate and other consumer (3) 4,658 — — — — 4,658 Total commercial and consumer banking 118,523 1 — 439 440 118,963 Total loans $ 861,868 $ 5,452 $ 4,829 $ 12,241 $ 22,522 $ 884,390 December 31, 2022 Credit card $ 225,165 $ 4,670 $ 3,626 $ 10,498 $ 18,794 $ 243,959 Commercial and consumer banking: Commercial real estate 89,544 — — — — 89,544 Commercial and industrial 7,636 — 1 — 1 7,637 Residential real estate and other consumer (3) 2,966 — — — — 2,966 Total commercial and consumer banking 100,146 — 1 — 1 100,147 Total loans $ 325,311 $ 4,670 $ 3,627 $ 10,498 $ 18,795 $ 344,106 _____________________ (1) All of the credit cards ≥ 90 days past due continued to accrue interest. As of the dates indicated, there were no credit cards on nonaccrual status. As of the dates indicated, commercial and consumer banking loans on nonaccrual status were immaterial. (2) For credit card, the balance is presented before allowance for credit losses of $52,385 and $39,110 as of December 31, 2023 and December 31, 2022, respectively, and accrued interest of $5,288 and $4,315, respectively. For senior secured loans, the balance is presented before accrued interest of $730 as of December 31, 2023. For commercial and consumer banking, the balance is presented before allowance for credit losses of $2,310 and $1,678, as of December 31, 2023 and December 31, 2022, respectively, and accrued interest of $415 and $324, respectively. (3) Includes residential real estate loans originated by Golden Pacific for which we did not elect the fair value option. 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) based on FICO scores, which are obtained at origination of the account and are refreshed monthly thereafter. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data. December 31, FICO 2023 2022 ≥ 800 $ 29,269 $ 14,421 780 – 799 19,350 11,327 760 – 779 20,740 12,179 740 – 759 23,361 14,501 720 – 739 28,621 19,343 700 – 719 35,528 26,239 680 – 699 38,289 31,543 660 – 679 35,443 31,958 640 – 659 25,836 25,959 620 – 639 15,569 15,566 600 – 619 10,063 8,968 ≤ 599 37,625 31,955 Total credit card $ 319,694 $ 243,959 Commercial and Consumer Banking We analyze loans in our commercial and consumer banking portfolio 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 or weaknesses that deserves management’s close attention. If left uncorrected, the 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: Term Loans by Origination Year December 31, 2023 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Commercial real estate Pass $ 23,200 $ 29,761 $ 5,636 $ 4,550 $ 9,332 $ 17,316 $ 89,795 $ 186 Watch 1,234 8,691 1,648 — 215 2,749 14,537 — Special mention — — — — — 1,703 1,703 — Substandard — — — — — 1,536 1,536 — Total commercial real estate $ 24,434 $ 38,452 $ 7,284 $ 4,550 $ 9,547 $ 23,304 $ 107,571 $ 186 Commercial and industrial Pass $ 54 $ — $ — $ 63 $ 96 $ 4,941 $ 5,154 $ 299 Watch 46 — — — 16 3 65 — Substandard — — — — — 1,030 1,030 — Total commercial and industrial $ 100 $ — $ — $ 63 $ 112 $ 5,974 $ 6,249 $ 299 Residential real estate and other consumer Pass $ 1,845 $ — $ — $ — $ — $ 2,585 $ 4,430 $ 188 Watch — — — — — 40 40 — Total residential real estate and other consumer $ 1,845 $ — $ — $ — $ — $ 2,625 $ 4,470 $ 188 Total commercial and consumer banking $ 26,379 $ 38,452 $ 7,284 $ 4,613 $ 9,659 $ 31,903 $ 118,290 $ 673 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Note 5. Allowance for Credit Losses Our allowance for credit losses represents our current estimate of expected credit losses over the remaining contractual life of certain financial assets, including credit cards as well as commercial and consumer banking loans acquired in the Bank Merger, which relate to our Financial Services segment, and accounts receivables primarily related to our Technology Platform segment. 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. In estimating expected credit losses for credit cards, we segment loans based on credit quality indicators and reassess our pools periodically to confirm that all loans within each pool continue to share similar risk characteristics. We establish an allowance within each pool utilizing a proprietary risk model that relies on assumptions such as average annual percentage rate, payment rate, utilization, delinquency status and default probability. The model may then be adjusted for current conditions and reasonable and supportable forecasts of future conditions, including economic conditions. We apply the aforementioned assumptions to the drawn balance of credit cards within each pool to estimate the lifetime expected credit losses within each pool, which are then aggregated to determine the allowance for credit losses. We evaluate whether to include qualitative reserves to cover losses that are expected but may not be adequately represented in the quantitative methods or the economic assumptions. The qualitative reserves address possible limitations within the models, such as external conditions including regulatory requirements, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions. When a credit card balance is charged off, we record a reduction to the allowance and the credit card balance. The following table presents changes in our allowance for credit losses: Credit Card (1) Commercial and Consumer Banking (1) Accounts Receivable (1) Balance at January 1, 2022 $ 7,037 $ — $ 2,292 Provision for credit losses (2) 53,030 1,302 586 Allowance for PCD loans (3) — 382 — Write-offs charged against the allowance (20,957) (6) (93) Balance at December 31, 2022 $ 39,110 $ 1,678 $ 2,785 Provision for credit losses (2) 54,267 678 773 Write-offs charged against the allowance (40,992) (46) (1,721) Balance at December 31, 2023 $ 52,385 $ 2,310 $ 1,837 _____________________ (1) Credit cards and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans held for investment in the consolidated balance sheets. Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the consolidated balance sheets. (2) The provision for credit losses on credit cards and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses in the consolidated statements of operations and comprehensive loss . During the year ended December 31, 2023, recoveries of amounts previously reserved related to credit cards were $2,895, and immaterial during the year ended December 31, 2022. There were immaterial recoveries of amounts previously reserved related to commercial and consumer banking loans during the years ended December 31, 2023 and 2022. The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. During the years ended December 31, 2023 and 2022, recoveries of amounts previously reserved related to accounts receivable were $1,252 and $2,912, respectively. (3) In connection with the Bank Merger, we obtained PCD loans, for which we measured an allowance, with a corresponding increase to the amortized cost basis as of the acquisition date. Therefore, recognition of the initial allowance for credit losses did not impact earnings. Credit card: Accrued interest receivables written off by reversing interest income were $9.2 million and $4.7 million during the years ended December 31, 2023 and 2022, respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 6. Investment Securities Investments in AFS Debt Securities The following table presents our investments in AFS debt securities: Amortized Cost Accrued Interest Gross Unrealized Gains Gross Unrealized Losses (1) Fair Value December 31, 2023 U.S. Treasury securities $ 518,673 $ 206 $ 978 $ (780) $ 519,077 Multinational securities (2) 8,548 103 — (17) 8,634 Corporate bonds 32,609 207 — (1,092) 31,724 Agency mortgage-backed securities 28,714 111 33 (1,016) 27,842 Other asset-backed securities 7,272 4 — (154) 7,122 Other (3) 941 8 — (161) 788 Total investments in AFS debt securities $ 596,757 $ 639 $ 1,011 $ (3,220) $ 595,187 December 31, 2022 U.S. Treasury securities $ 121,282 $ 217 $ — $ (3,510) $ 117,989 Multinational securities (2) 19,658 109 — (724) 19,043 Corporate bonds 41,890 257 — (2,644) 39,503 Agency mortgage-backed securities 8,899 22 — (991) 7,930 Other asset-backed securities 9,556 5 — (514) 9,047 Other (3) 2,133 21 — (228) 1,926 Total investments in AFS debt securities $ 203,418 $ 631 $ — $ (8,611) $ 195,438 _____________________ (1) As of December 31, 2023 and December 31, 2022, we concluded that there was no credit loss attributable to securities in unrealized loss positions, as (i) 92% and 67% of the amortized cost basis of our investments as of December 31, 2023 and December 31, 2022, respectively, was composed of U.S. Treasury securities, agency mortgage-backed securities and sovereign foreign bonds, which are of high credit quality and have no risk of credit-related impairment due to the nature of the counterparties and history of no credit losses, and (ii) we have not identified factors indicating credit-related impairment for the remaining investments and expect that the contractual principal and interest payments will be received. 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. (2) Includes supranational and sovereign foreign bonds. (3) Includes state and city municipal bond securities. The following table presents information about our investments in AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 and December 31, 2022. Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2023 U.S. Treasury securities $ 480,012 $ (58) $ 39,065 $ (722) $ 519,077 $ (780) Multinational securities — — 8,634 (17) 8,634 (17) Corporate bonds — — 31,724 (1,092) 31,724 (1,092) Agency mortgage-backed securities 20,930 (157) 6,912 (859) 27,842 (1,016) Other asset-backed securities — — 7,122 (154) 7,122 (154) Other — — 788 (161) 788 (161) Total investments in AFS debt securities $ 500,942 $ (215) $ 94,245 $ (3,005) $ 595,187 $ (3,220) December 31, 2022 U.S. Treasury securities $ 27,759 $ (1,171) $ 90,230 $ (2,339) $ 117,989 $ (3,510) Multinational securities — — 19,043 (724) 19,043 (724) Corporate bonds 4,480 (313) 35,023 (2,331) 39,503 (2,644) Agency mortgage-backed securities 6,448 (814) 1,482 (177) 7,930 (991) Other asset-backed securities — — 9,047 (514) 9,047 (514) Other 745 (200) 1,181 (28) 1,926 (228) Total investments in AFS debt securities $ 39,432 $ (2,498) $ 156,006 $ (6,113) $ 195,438 $ (8,611) The following table presents the amortized cost and fair value of our investments in AFS debt securities by contractual maturity: Due Within One Year Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Total December 31, 2023 Investments in AFS debt securities—Amortized cost: U.S. Treasury securities $ 513,281 $ 5,392 $ — $ — $ 518,673 Multinational securities 8,548 — — — 8,548 Corporate bonds 18,122 11,181 3,306 — 32,609 Agency mortgage-backed securities — 135 684 27,895 28,714 Other asset-backed securities 87 5,283 1,902 — 7,272 Other — — — 941 941 Total investments in AFS debt securities $ 540,038 $ 21,991 $ 5,892 $ 28,836 $ 596,757 Weighted average yield for investments in AFS debt securities (1) 4.79 % 0.99 % 2.98 % 3.13 % 4.55 % Due Within One Year Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Total Investments in AFS debt securities—Fair value (2) : U.S. Treasury securities $ 513,710 $ 5,161 $ — $ — $ 518,871 Multinational securities 8,531 — — — 8,531 Corporate bonds 17,785 10,733 2,999 — 31,517 Agency mortgage-backed securities — 128 633 26,970 27,731 Other asset-backed securities 87 5,133 1,898 — 7,118 Other — — — 780 780 Total investments in AFS debt securities $ 540,113 $ 21,155 $ 5,530 $ 27,750 $ 594,548 _____________________ (1) The weighted average yield represents the effective yield for the investment securities owned at the end of the period and is computed based on the amortized cost of each security . (2) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $639 and $631 as of December 31, 2023 and December 31, 2022, respectively. Gross realized gains and losses on our investments in AFS debt securities were $3,356 and $509, respectively, during the year ended December 31, 2023, and were immaterial during the years ended December 31, 2022 and 2021. During the years ended December 31, 2023, 2022, and 2021 there were no transfers between classifications of our investments in AFS debt securities. See Note 13. Equity for unrealized gains and losses on our investments in AFS debt securities and amounts reclassified out of AOCI. Securitization Investments The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs, which are presented within investment securities in the consolidated balance sheets: December 31, 2023 2022 Personal loans $ 27,247 $ 20,172 Student loans 79,501 181,159 Securitization investments $ 106,748 $ 201,331 |
Securitization and Variable Int
Securitization and Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Securitization and Variable Interest Entities | Note 7. Securitization and Variable Interest Entities Consolidated VIEs We consolidate certain securitization trusts in which we have a variable interest and are deemed to be the primary beneficiary. Our consolidation policy is further discussed in Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards . 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. We make 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 the interest that we expect to absorb the expected gains and losses of the VIE. Our 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 December 31, 2023 and December 31, 2022, we had six consolidated VIEs, respectively, on our consolidated balance sheets. During the year ended December 31, 2023, we established one consolidated VIE and consolidated one previously nonconsolidated VIE, and exercised securitization clean up calls related to two consolidated VIEs. The assets of consolidated VIEs that were included in our consolidated balance sheets may only be used to settle obligations of consolidated VIEs and were in excess of those obligations as of December 31, 2023 and December 31, 2022. Intercompany balances are eliminated upon consolidation. 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 may have the power to perform the activities which most impact the economic performance of the VIE, but since either we hold an insignificant financial interest in the trusts or rights held by other variable interest holders convey power, we are not the primary beneficiary. 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. We did not provide financial support to any nonconsolidated VIEs beyond our initial equity 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. As of December 31, 2023 and December 31, 2022, we had investments in 22 and 23 nonconsolidated VIEs, respectively. During the year ended December 31, 2023, we established one nonconsolidated trust, exercised a securitization clean up call on one nonconsolidated VIE and collapsed the associated trust, as well as consolidated one previously nonconsolidated VIE. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 8. Goodwill and Intangible Assets Goodwill A rollforward of our goodwill balance is presented below: Year Ended December 31, 2023 2022 Beginning balance $ 1,622,991 $ 898,527 Less: accumulated impairment — — Beginning balance, net 1,622,991 898,527 Additional goodwill recognized (1) 17,688 724,464 Goodwill impairment (2) (247,174) — Ending balance (3) $ 1,393,505 $ 1,622,991 _____________________ (1) For the year ended December 31, 2023, related to the acquisition of Wyndham, which is attributable to our Lending reportable segment. For the year ended December 31, 2022, includes $713,217 related to the Technisys Merger and $11,247 related to the Bank Merger. (2) During the year ended December 31, 2023, we recognized goodwill impairment losses related to our Technology Platform reportable segment, which were reported within noninterest expense—goodwill impairment in the consolidated statements of operations and comprehensive loss. These goodwill impairment losses represent non-cash charges and did not affect our liquidity position or regulatory capital ratios. (3) As of December 31, 2023, goodwill attributable to the Lending, Technology Platform and Financial services reportable segments was $17,688, $1,338,658 and $37,159, respectively. As of December 31, 2022, goodwill attributable to the Technology Platform and Financial services reportable segments was $1,585,832 and $37,159, respectively. Intangible Assets The following is a summary of the carrying amount and estimated useful lives of our intangible assets by class: Weighted Average Useful Life (Years) Gross Balance Accumulated Amortization Net Book Value December 31, 2023 Developed technology (1) 8.5 $ 461,438 $ (151,823) $ 309,615 Customer-related 3.9 167,350 (141,248) 26,102 Trade names, trademarks and domain names 5.9 20,060 (8,436) 11,624 Core banking infrastructure (2) n/a 17,100 (17,100) — Capitalized software development costs (3) 4.0 20,344 (4,461) 15,883 Core deposits 7.3 1,000 (264) 736 Broker-dealer license and trading rights 5.7 250 (162) 88 Total $ 687,542 $ (323,494) $ 364,048 December 31, 2022 Developed technology 8.7 $ 444,438 $ (97,202) $ 347,236 Customer-related 3.9 167,350 (99,264) 68,086 Trade names, trademarks and domain names 8.7 20,060 (4,028) 16,032 Core banking infrastructure (2) n/a 17,100 (17,100) — Capitalized software development costs (3) 4.0 10,532 (737) 9,795 Core deposits 7.3 1,000 (126) 874 Broker-dealer license and trading rights 5.7 250 (118) 132 Total $ 660,730 $ (218,575) $ 442,155 _____________________ (1) During the year ended December 31, 2023, the Company acquired $17,000 in developed technology related to the acquisition of Wyndham. (2) Although the core banking infrastructure intangible asset was fully amortized as of December 31, 2023, it remains in use by the Company. (3) Includes capitalized costs related to software products to be sold, leased or marketed within our technology products and solutions arrangements. During the year ended December 31, 2023, the increase in capitalized software development costs relates to increased Technology Platform activity. During the year ended December 31, 2023, total amortization expense related to capitalized software was $4,246, and capitalized share-based compensation related to capitalized software development costs was immaterial. For the years ended December 31, 2023, 2022 and 2021, amortization expense associated with intangible assets was $104,919, $93,016 and $70,507, respectively. There were no abandonments or impairments during any of the years presented. Estimated future amortization expense associated with intangible assets as of December 31, 2023 is as follows: 2024 $ 74,717 2025 72,766 2026 69,988 2027 53,662 2028 50,474 Thereafter 42,441 Total $ 364,048 |
Property, Equipment, Software a
Property, Equipment, Software and Leases | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant And Equipment And Leases [Abstract] | |
Property, Equipment, Software and Leases | Note 9. Property, Equipment, Software and Leases Property, Equipment and Software The table below presents our major classes of depreciable and amortizable assets by function: Gross Accumulated Depreciation/Amortization Carrying December 31, 2023 Software (1) $ 292,445 $ (117,003) $ 175,442 Leasehold improvements 39,046 (20,467) 18,579 Computer hardware 24,899 (19,000) 5,899 Furniture and fixtures 16,825 (10,797) 6,028 Finance lease ROU assets (2) 15,100 (7,191) 7,909 Building and land 3,192 (141) 3,051 Total $ 391,507 $ (174,599) $ 216,908 December 31, 2022 Software (1) $ 172,101 $ (54,516) $ 117,585 Leasehold improvements 40,257 (17,145) 23,112 Computer hardware 21,265 (13,736) 7,529 Furniture and fixtures 18,808 (10,122) 8,686 Finance lease ROU assets (2) 15,100 (5,033) 10,067 Building and land 3,192 (67) 3,125 Total $ 270,723 $ (100,619) $ 170,104 _____________________ (1) Software primarily includes internally-developed software related to significant developments and enhancements for our products. During the years ended December 31, 2023, 2022 and 2021, we capitalized $31,126, $22,577 and $7,776, respectively, of share-based compensation related to internally-developed software, and recognized associated amortization expense of $16,074, $6,223 and $792 , respectively. (2) Finance lease ROU assets include our rights to certain physical signage within SoFi Stadium. See below for additional information on our leases. For the years ended December 31, 2023, 2022 and 2021, total depreciation and amortization expense associated with property, equipment and software, inclusive of the amortization of capitalized share-based compensation, was $96,497, $59,081 and $31,061, respectively. For the years ended December 31, 2023, 2022 and 2021, we recognized no property, equipment and software abandonment and no impairments, and had immaterial losses on disposals. Leases and Occupancy Leases We primarily lease our office premises under multi-year, non-cancelable operating leases. Our operating leases have terms expiring from 2024 to 2040, exclusive of renewal option periods. Our office leases contain renewal option periods ranging from three Our operating and finance leases include leases from our September 2019 agreements associated with being the named sponsor of SoFi Stadium, which includes the stadium itself, a performance venue and a future shopping district. Operating leases that commenced in September 2020 included our rights to use two multi-purpose stadium suites, for which we elected the practical expedient to not bifurcate the lease component from the non-lease components, and our rights to certain event space within the stadium and performance venue on a rent-free basis, for which we applied the short-term lease exemption practical expedient. Finance leases that commenced in September 2020 included our rights to certain physical signage within the stadium. The agreement associated with the shopping district commenced in 2023. We bifurcated lease components from non-lease components of certain of the arrangements, the latter of which represent sponsorship and advertising opportunities rather than the rights to physical assets that we control. We recognize the non-lease components within noninterest expense—sales and marketing in the consolidated statements of operations and comprehensive loss. The components of lease expense and supplemental cash flow and non-cash information related to our leases were as follows. Year Ended December 31, 2023 2022 2021 Operating lease cost $ 21,905 $ 20,805 $ 20,188 Finance lease cost – amortization of ROU assets 2,157 2,157 2,157 Finance lease cost – interest expense on lease liabilities 452 469 485 Short-term lease cost 1,718 2,031 1,335 Variable lease cost (1) 3,509 3,483 3,979 Sublease income (1,034) — (717) Total lease cost $ 28,707 $ 28,945 $ 27,427 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 26,997 $ 21,682 $ 19,811 Operating cash outflows from finance leases 452 469 488 Financing cash outflows from finance leases 509 488 516 Supplemental non-cash information Non-cash operating lease ROU assets obtained in exchange for lease liabilities (2) $ 8,553 $ (3,885) $ 12,734 _____________________ (1) Variable lease cost includes non-lease components classified as lease costs, such as common area maintenance fees, property taxes and utilities, that vary in amount for reasons other than the passage of time. We elected the practical expedient to not bifurcate the lease component from the non-lease components. (2) For the years ended December 31, 2023 and 2022, includes $6,995 and $764, respectively, of operating lease ROU assets obtained through acquisitions. Also includes impacts from lease modifications. Supplemental balance sheet information related to our leases was as follows: December 31, 2023 2022 Operating Leases ROU assets $ 89,635 $ 97,135 Operating lease liabilities 108,649 117,758 Weighted average remaining lease term (in years) 6.9 7.5 Weighted average discount rate 5.7 % 5.2 % Finance Leases ROU assets (1) $ 7,909 $ 10,067 Finance lease liabilities (2) 13,172 13,683 Weighted average remaining lease term (in years) 16.3 17.3 Weighted average discount rate 3.4 % 3.4 % _____________________ (1) Finance lease ROU assets are presented within property, equipment and software in the consolidated balance sheets. (2) Finance lease liabilities are presented within accounts payable, accruals and other liabilities in the consolidated balance sheets. As of December 31, 2023, future maturities of lease liabilities and a reconciliation of the total undiscounted cash flows to the lease liabilities in the consolidated balance sheets were as follows: Operating Leases Finance Leases 2024 $ 24,536 $ 968 2025 23,150 1,038 2026 21,513 1,060 2027 15,773 1,061 2028 15,211 1,061 Thereafter 33,296 11,931 Total 133,479 17,119 Less: imputed interest (24,830) (3,947) Lease liabilities $ 108,649 $ 13,172 Occupancy Occupancy-related costs, which primarily relate to the operations of our leased office spaces, were $31,946, $33,170, and $28,949 for the years ended December 31, 2023, 2022 and 2021, respectively. Occupancy-related expenses are presented within the following categories of expenses within noninterest expense : (i) technology and product development , (ii) sales and marketing , (iii) cost of operations , and (iv) general and administrative in the consolidated statements of operations and comprehensive loss. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets And Liabilities [Abstract] | |
Other Assets and Other Liabilities | Note 10. Other Assets and Other Liabilities The following table presents the components of other assets : December 31, 2023 2022 Accounts receivable, net (1) $ 169,852 $ 127,050 Prepaid expenses and capitalized contract costs (2) 112,748 73,429 Credit default swap (3) 103,204 — Restricted investments (4) 83,551 28,651 Investments in equity securities (5) 22,920 22,825 Digital assets safeguarding asset (6) 9,292 106,826 Derivative financial instruments (7) 6,916 34,610 Other 45,883 23,943 Other assets $ 554,366 $ 417,334 _____________________ (1) Includes accounts receivable, net of allowance for credit losses, associated with revenue from contracts with customers, deposit-related receivables and other receivables. See Note 5. Allowance for Credit Losses for information on the allowance for credit losses on accounts receivable. (2) Includes capitalized incremental costs of obtaining certain contracts of $60,729 as of December 31, 2023 which are amortized over the life of the account through noninterest expense—sales and marketing on the consolidated statements of operations and comprehensive loss. (3) We entered into a credit default swap related to our student loans which meets the definition of a financial guarantee and is excluded from derivative accounting treatment. We apply the insurance contract claim method by deferring the full estimated amount of premiums paid and payable at inception. (4) Includes investments in FRB stock and FHLB stock, which are restricted investment securities that are not marketable. These investments are carried at cost and assessed for impairment. (5) As of December 31, 2023, primarily included an investment that was entered into in 2021 and recorded as an equity method investment until January 2022 in conjunction with relinquishing our seat on the investee’s board of directors. Our equity method investment income for the year ended December 31, 2023 was immaterial and we did not receive any distributions. (6) See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 15. Fair Value Measurements for additional information on the digital assets safeguarding asset. (7) See Note 14. Derivative Financial Instruments and Note 15. Fair Value Measurements for additional information on derivative financial instruments. The following table presents the components of accounts payable, accruals and other liabilities : December 31, 2023 2022 Accrued expenses (1) $ 202,259 $ 145,971 Credit default swap (2) 103,204 — Accounts payable 93,301 126,875 Accrued interest 66,614 17,700 Deferred tax liabilities, net (3) 40,229 56,482 Finance lease liability (4) 13,172 13,683 Digital assets safeguarding liability (5) 9,292 106,826 Deferred revenue (6) 5,718 10,028 Derivative financial instruments (7) 4,604 9,251 Other 11,355 29,399 Accounts payable, accruals and other liabilities $ 549,748 $ 516,215 _____________________ (1) Includes accrued compensation and compensation-related expenses, accrued taxes and other accrued expenses. (2) See footnote (3) to the table above. (3) See Note 17. Income Taxes for additional information on income taxes. (4) See Note 9. Property, Equipment, Software and Leases for additional information on finance leases. (5) See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 15. Fair Value Measurements for additional information on the digital assets safeguarding liability. (6) See Note 3. Revenue for additional information on deferred revenue. (7) See Note 14. Derivative Financial Instruments and Note 15. Fair Value Measurements for additional information on derivative financial instruments. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Note 11. Deposits We offer deposit accounts (referred to as “checking and savings” accounts within SoFi Money) to our members through SoFi Bank, which include interest-bearing deposits and noninterest-bearing deposits. The following table presents a detail of interest-bearing deposits: December 31, 2023 2022 Savings deposits $ 12,902,033 $ 4,383,953 Demand deposits (1) 2,663,335 1,912,452 Time deposits (1)(2) 3,003,625 969,387 Total interest-bearing deposits $ 18,568,993 $ 7,265,792 _____________________ (1) As of December 31, 2023 and December 31, 2022, includes brokered deposits of $3,160,414 and $1,026,400, respectively, of which $2,971,462 and $940,000, respectively, are time deposits and $188,952 and $86,400, respectively, are demand deposits. (2) As of December 31, 2023 and December 31, 2022, the amount of time deposits that exceeded the insured limit (referred to as “uninsured deposits”) totaled $21,268 and $20,842, respectively. As of December 31, 2023, future maturities of our total time deposits were as follows: 2024 $ 2,578,881 2025 424,198 2026 296 2028 250 Total $ 3,003,625 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 12. Debt The following table summarizes the components of our debt: December 31, 2023 December 31, 2022 Borrowing Description Total Collateral (1) Stated Interest Rate (2) Weighted Average Effective Interest Rate (3) Termination/Maturity (4) Total Capacity Total Outstanding (5) Total Outstanding Debt Facilities Personal loan warehouse facilities $ 1,271,233 5.61% – 7.30% 6.20% January 2024 – January 2032 $ 4,925,000 $ 1,077,444 $ 1,452,085 Student loan warehouse facilities 2,530,122 6.13% – 7.16% 6.72% April 2024 – December 2026 3,945,000 2,095,046 1,504,926 Credit card warehouse facility — 6.68% —% June 2025 100,000 — — Risk retention warehouse facilities (6) 74,043 5.47% – 8.72% 7.03% January 2024 – October 2027 200,000 67,038 101,964 Revolving credit facility (7) 6.95% 7.07% April 2028 645,000 486,000 486,000 Other Debt Convertible senior notes (8) —% 0.43% October 2026 1,111,972 1,200,000 Other financing (9) 186,556 216,525 — — Securitizations Personal loan securitizations 494,643 1.30% – 6.21% 5.94% September 2030 – May 2031 239,340 529,132 Student loan securitizations 212,140 3.09% – 4.44% 3.83% May 2040 – August 2048 182,744 246,856 Total, before unamortized debt issuance costs, premiums and discounts $ 5,259,584 $ 5,520,963 Less: unamortized debt issuance costs, premiums and discounts (26,168) (35,081) Total debt $ 5,233,416 $ 5,485,882 _____________________ (1) As of December 31, 2023, represents the total of the unpaid principal balances within each debt category, 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 may vary period to period due to the timing of the next scheduled payment to the warehouse facility. (2) For variable-rate debt, the ranges of stated interest rates are based on the interest rates in effect as of December 31, 2023. The interest on our variable-rate debt is typically designed as a reference rate plus a spread. Reference rates as of December 31, 2023 included overnight SOFR, one-month SOFR, three-month SOFR, prime rate and commercial paper rates determined by the facility lenders. As debt arrangements are renewed, the reference rate and/or spread are subject to change. Unused commitment fees ranging from 0 to 65 bps on our various warehouse facilities are recognized within noninterest expense—general and administrative in our consolidated statements of operations and comprehensive loss. (3) Weighted average effective interest rates are calculated based on the interest rates in effect as of December 31, 2023 and include the amortization of debt issuance costs. (4) 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. (5) There were no debt discounts or premiums issued during the year ended December 31, 2023. (6) For risk retention warehouse facilities, we only state capacity amounts for facilities wherein we can pledge additional asset-backed bonds and residual investments as of the balance sheet date. (7) As of December 31, 2023, $13.1 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure letters of credit. Refer to our letter of credit disclosures in Note 18. Commitments, Guarantees, Concentrations and Contingencies 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 the prime rate. (8) The original issue discount and debt issuance costs related to the convertible senior notes are amortized into interest expense—corporate borrowings in the consolidated statements of operations and comprehensive loss using the effective interest method over the contractual term of the notes. For the years ended December 31, 2023, 2022 and 2021, total interest expense on the convertible notes was $5.1 million, $5.1 million and $1.2 million, respectively, and the effective interest rate was 0.43%, 0.42% and 0.43%, respectively, related to amortization of debt discount and issuance costs. As of December 31, 2023 and December 31, 2022, unamortized debt discount and issuance costs were $13.3 million and $19.4 million, respectively, and the net carrying amount was $1.10 billion and $1.18 billion, respectively. (9) Includes $54.8 million of loans and $131.7 million of investment securities pledged as collateral to secure $166.5 million of available borrowing capacity with the FHLB, of which $27.2 million was not available as it was utilized to secure letters of credit. Refer to our letter of credit disclosures in Note 18. Commitments, Guarantees, Concentrations and Contingencies for more details. Also includes unsecured available borrowing capacity of $50.0 million with correspondent banks. The total accrued interest payable on borrowings of $11,189 and $13,538 as of December 31, 2023 and 2022, respectively, was presented within accounts payable, accruals and other liabilities in the consolidated balance sheets. Convertible Senior Notes In October 2021, we issued $1.2 billion aggregate principal amount of convertible notes due 2026, pursuant to an indenture, dated October 4, 2021, between the Company and U.S. Bank National Association, as trustee. The convertible notes are unsecured, unsubordinated obligations. The convertible notes do not bear regular interest. The convertible notes will mature on October 15, 2026, unless earlier repurchased, redeemed or converted. The net proceeds from the offering were $1.176 billion, after deducting the 2% initial purchasers’ discount of $24 million, and before the cost of the Capped Call Transactions, as described below, and offering expenses payable by the Company. The debt issuance costs of $1.7 million included third-party legal and accounting fees. The original issue discount and debt issuance costs are amortized into interest expense—corporate borrowings in the consolidated statements of operations and comprehensive loss using the effective interest method over the contractual term of the convertible notes. In December 2023, the Company entered into separate, privately negotiated repurchase agreements with a limited number of holders of the convertible notes to repurchase $88.0 million aggregate principal amount of the convertible notes, which were settled through the issuance of 9,490,000 shares of common stock. Following these repurchases, $1.1 billion aggregate principal amount of the convertible notes remain outstanding. These transactions were determined to be an extinguishment of debt. The difference between the consideration used to repurchase the convertible notes and the carrying value of the convertible notes, less retirement of discount and issuance costs, resulted in a gain on extinguishment of $14.6 million recorded within noninterest income—other in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2023. We used a portion of the net proceeds from the October 2021 offering to fund the cost of entering into the Capped Call Transactions, as described in Note 13. Equity . The remainder of the net proceeds from the offering were used to pay related expenses and were allocated for general corporate purposes. All of these transactions are expected to remain in effect notwithstanding the December 2023 repurchases. Conversion The convertible notes are convertible by the noteholders prior to the close of business on the business day immediately preceding April 15, 2026 if certain conditions related to the Company’s share price are met, there are certain corporate events or distributions of the Company’s stock, or the Company calls the notes for redemption, each as set forth in the indenture. On and after April 15, 2026 until the close of business on the second scheduled trading day immediately preceding the maturity date, the convertible notes are freely convertible by the noteholders. The conversion rate is 44.6150 shares of our common stock per $1,000 principal amount of convertible notes, which represents an initial conversion price of approximately $22.41 per share of our common stock. As of December 31, 2023, the convertible notes are potentially convertible into 49,610,631 shares of common stock. Settlement We will settle conversions by paying or delivering, at our election, cash, shares of our common stock or a combination of cash and shares of our common stock, based on the applicable conversion rate(s). If we elect to deliver cash or a combination of cash and shares of our common stock, then the consideration due upon conversion will be determined over an observation period consisting of 30 “VWAP Trading Days” (as defined in the indenture). The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. Redemption The convertible notes will also be redeemable, in whole or in part, at our option at any time, and from time to time, on or after October 15, 2024 through the 30th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the convertible notes to be redeemed, plus accrued interest, if any, thereon to, but excluding, the redemption date, but only if certain liquidity conditions described in the indenture are satisfied and certain conditions are met with respect to the last reported sale price per share of our common stock prior to conversion. In addition, calling any note for redemption will also constitute a Make-Whole Fundamental Change with respect to that note, in which case the conversion rate applicable to the conversion of that note will be increased in certain circumstances if it is converted after it is called for redemption. See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards for our accounting policy as it relates to the convertible notes. Material Changes to Debt Arrangements On April 28, 2023, we entered into an Amended and Restated Revolving Credit Agreement (“Amended and Restated Credit Agreement”), which amended and restated the Revolving Credit Agreement (“Original Credit Agreement”), dated as of September 27, 2018, among Social Finance, Inc., the lenders party thereto, the issuing banks party thereto and Goldman Sachs Bank USA, as administrative agent. The Amended and Restated Credit Agreement amended and restated the Original Credit Agreement to, among other things, (i) increase the initial aggregate commitment to $645 million, (ii) extend the maturity date of the revolving credit facility to the date that is five years after the closing date, (iii) change the borrower entity under the revolving credit facility to SoFi Technologies, Inc., (iv) replace LIBOR as the term benchmark rate applicable to revolving loans denominated in U.S. dollars with a benchmark rate equal to Term SOFR plus a credit spread adjustment of 0.10%, and (v) effect certain other changes. The Amended and Restated Credit Agreement also contains financial covenants that require the Company to maintain a certain amount of unrestricted cash and cash equivalents and to meet certain risk-based capital ratios and a leverage ratio. During the year ended December 31, 2023, we opened two personal loan warehouse facilities with an aggregate maximum available capacity of $1.0 billion, two student loan warehouse facilities with an aggregate maximum available capacity of $550.0 million and closed one risk retention warehouse facility. 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 unrestricted cash and cash equivalents, (iii) a maximum leverage ratio of total debt to tangible net worth, and (iv) minimum risk-based capital and leverage ratios. Our debt covenants can lead to restricted cash classifications in our 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 act as a guarantor for our wholly-owned subsidiaries in several arrangements in the case of default. As of December 31, 2023, we have not identified any risks of nonpayment by our wholly-owned subsidiaries. Maturities of Borrowings Future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows: December 31, 2023 2024 $ — 2025 — 2026 1,111,972 2027 — 2028 486,000 Thereafter — Total $ 1,597,972 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity | Note 13. 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. See “Series 1 Preference and Rights” for additional provisions of the SoFi Technologies Series 1 Redeemable Preferred Stock. As of December 31, 2023, there were 3,234,000 shares of SoFi Technologies Series 1 Redeemable Preferred Stock issued and outstanding, which had an original issuance price of $100.00. Recent Issuances and Redemptions In conjunction with the Business Combination, we redeemed and canceled 15,000,000 shares of redeemable SoFi Technologies common stock for a purchase price of $150.0 million. Series 1 Preference and Rights On January 7, 2021, the Company and (i) entities affiliated with Silver Lake, which is affiliated with Michael Bingle, one of the directors of SoFi, (ii) entities affiliated with the QIA, which is affiliated with Ahmed Al-Hammadi, one of the directors of SoFi, and (iii) Mr. Noto, the Chief Executive Officer and one of the directors of SoFi, entered into the Amended and Restated Series 1 Preferred Stock Investors’ Agreement (the “Amended Series 1 Agreement”), which amended the Series 1 Preferred Stock Investors’ Agreement dated May 29, 2019 (the “Original Series 1 Agreement”). In conjunction with the Business Combination, the Amended Series 1 Agreement amended the special payment provision under the original agreement to provide for a one-time special payment of $21.2 million to the holders of Series 1 Redeemable Preferred Stock, which was paid from the proceeds of the Business Combination and settled contemporaneously with the Business Combination. The special payment was recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss, as this feature was accounted for as an embedded derivative that was not clearly and closely related to the host contract, and did not have a subsequent impact on our consolidated financial results. The Series 1 Redeemable Preferred Stock has no stated maturity. In addition, in connection with the Business Combination, the Series 1 preferred stockholders entered into the Series 1 Registration Rights Agreement upon request by QIA, which provides Series 1 preferred stockholders with certain registration rights, provides for certain shelf registration filing obligations by SoFi and limits the future registration rights that SoFi may grant other parties. Dividends Prior to the Business Combination, no dividends were declared or paid subject to the preferred stock dividend provisions. Subsequent to the Business Combination, the dividend provisions were no longer in effect. Pursuant to the SoFi Technologies Certificate of Incorporation, the SoFi Technologies Series 1 preferred stock are entitled to receive cumulative cash dividends from and including the date of issuance of such shares at a fixed rate equal to $12.50 per annum per share, or 12.5% per annum, of the SoFi Technologies Series 1 Redeemable Preferred Stock share price of $100.00 (“Series 1 Dividend Rate”). The Series 1 Dividend Rate resets to a new fixed rate on the fifth anniversary of May 29, 2019, the original Series 1 preferred stock issue date (“Series 1 Original Issue Date”) and on every subsequent one-year anniversary of the Series 1 Original Issue Date (“Dividend Reset Date”), equal to the term benchmark rate applicable to revolving loans denominated in U.S. dollars in our revolving credit facility, i.e. a benchmark rate equal to Term SOFR plus a credit spread adjustment of 0.10% as in effect on the dividend determination date plus a spread of 9.94% per annum. Series 1 preferred stockholders prior to the Business Combination who received shares of SoFi Technologies Series 1 Redeemable Preferred Stock at the effective time of the Merger remained entitled to receive dividends accrued but unpaid as of the date of the Agreement in respect of such shares of Series 1 Redeemable Preferred Stock. During the years ended December 31, 2023, 2022 and 2021, the Series 1 preferred stockholders were entitled to dividends of $40,425, $40,425 and $40,426, respectively. There were no dividends payable as of December 31, 2023. Dividends are payable semiannually in arrears on the 30th day of June and 31st day of December of each year, when and as authorized by the Board of Directors . The Company may defer any scheduled dividend payment for up to three semiannual dividend periods, subject to such deferred dividend accumulating and compounding at the applicable Series 1 Dividend Rate. If the Company defers any single scheduled dividend payment on the Series 1 Redeemable Preferred Stock for four or more semiannual dividend periods, the Series 1 Dividend Rate applicable to: (i) the compounding following the date of such default on all then-deferred dividend payments (whether or not deferred for four or more semiannual dividend periods) is applied on a go-forward basis and not retroactively, and (ii) new dividends declared following the date of such default and the compounding on such dividends if such new dividends are deferred shall be equal to the otherwise applicable Series 1 Dividend Rate plus 400 basis points. This default-related increase shall continue to apply until the Company pays all deferred dividends and related compounding. Once the Company is current on all such dividends, it may again commence deferral of any pre-scheduled dividend payment for up to three semiannual dividend periods, following the same procedure as outlined in the foregoing. Conversion Subsequent to the Business Combination, the conversion provisions in respect of each series of preferred stock were no longer in effect, other than the Series 1 Redeemable Preferred Stock, which did not have any rights of conversion. Pursuant to the SoFi Technologies Certificate of Incorporation, the Series 1 Redeemable Preferred Stock continue not to have any rights to convert into shares of any other class or series of securities of the Company. Liquidation Subsequent to the Business Combination, the liquidation provisions in respect of every series of preferred stock, other than Series 1 Redeemable Preferred Stock, were no longer in effect. Pursuant to the SoFi Technologies Certificate of Incorporation, with respect to rights to the distribution of assets upon the Company’s liquidation, dissolution or winding up, the Series 1 Redeemable Preferred Stock is senior to all classes or series of common stock, non-voting common stock, SoFi Technologies Preferred Stock and any other class or series of capital stock of the Company now or hereafter authorized, issued or outstanding that, by its terms, does not expressly provide that it ranks senior to or pari passu with the Series 1 Redeemable Preferred Stock. Settlement Rights Pursuant to the SoFi Technologies Certificate of Incorporation, the Series 1 Redeemable Preferred Stock is redeemable at SoFi’s option in certain circumstances. SoFi may, at any time but no more than three times, at its option, settle the Series 1 Redeemable Preferred Stock, in whole or in part, but if in part, in an amount no less than: (i) one-third of the total amount of Series 1 Redeemable Preferred Stock outstanding as of May 28, 2021 or (ii) the remainder of Series 1 Redeemable Preferred Stock outstanding (the “Minimum Redemption Amount”). In addition, SoFi may, at its option, settle for cash the Series 1 Redeemable Preferred Stock in whole, but not in part, within 120 days of the occurrence of a Change of Control (as that term is defined in the SoFi Technologies Certificate of Incorporation), which would result in a payment of the initial purchase price of the Series 1 preferred stock of $323.4 million plus any unpaid dividends on such stock (whether deferred or otherwise) (the “Series 1 Redemption Price”). Such settlement is determined at the discretion of the Board of Directors . If any such optional redemption by the Company occurs either: (i) prior to the fifth anniversary of the Series 1 Original Issue Date or (ii) after the fifth anniversary of the Series 1 Original Issue Date and not on a Dividend Reset Date, the Series 1 Redeemable Preferred Stock is entitled to receive an amount in cash equal to any such dividends that would have otherwise been payable to the holder on its redeemed shares of Series 1 Redeemable Preferred Stock for all dividend periods following the applicable optional redemption date up to and including the Dividend Reset Date immediately following such optional redemption date. If the Series 1 Redeemable Preferred Stock is not earlier redeemed by the Company, each holder of Series 1 Redeemable Preferred Stock has the right to require SoFi to settle for cash some or all of their Series 1 Redeemable Preferred Stock, in each case at the Series 1 Redemption Price, in the following circumstances: (i) within 120 days of the occurrence of a Change of Control, or (ii) during the six-month period following (a) a default in payment of any dividend on the Series 1 Redeemable Preferred Stock, or (b) the cure period for any covenant default under the SoFi Technologies Certificate of Incorporation. The Series 1 preferred stock had similar redemption provisions under the Original Series 1 Agreement. Pursuant to the Amended Series 1 Agreement, in January 2021, the Series 1 preferred stockholders waived their rights in the event of a liquidation, including the right to immediately receive the Series 1 proceeds. Therefore, the Series 1 preferred stock redemption value remained at $323.4 million subsequent to the Business Combination. The Series 1 Redeemable Preferred Stock remains in temporary equity following the Business Combination because the Series 1 Redeemable Preferred Stock is not fully controlled by SoFi. Voting Rights Subsequent to the Business Combination, the liquidation provisions in respect of every series of preferred stock, other than Series 1 Redeemable Preferred Stock, were no longer in effect. Pursuant to the SoFi Technologies Certificate of Incorporation, the Series 1 preferred stockholders do not have explicit board of director rights. 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, and were included within accounts payable, accruals and other liabilities in the consolidated balance sheets. The Series H preferred stock was converted into shares of SoFi Technologies common stock in conjunction with the Business Combination. 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 consolidated statements of operations and comprehensive 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. Subsequently, we reclassified the Series H warrant liability of $161,775 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 key inputs into our Black-Scholes Model valuation as of May 28, 2021, the final measurement date, were as follows: Input May 28, 2021 Risk-free interest rate 0.3 % Expected term (years) 2.9 Expected volatility 33.9 % Dividend yield — Exercise price $ 8.86 Fair value of Series H preferred stock $ 21.89 The Company’s use of the Black-Scholes Model required the use of subjective assumptions: • Risk-free interest rate — Based on the five-year U.S. Treasury rate, which was commensurate with the expected term of the warrants. At inception, we assumed that the term would be five years, given by design the warrants were only expected to extend for greater than five years if the Company was still not publicly traded by that point in time. The expected term assumption used reflects the five-year term less time elapsed since initial measurement. An increase in the expected term, in isolation, would typically correlate to a higher risk-free interest rate and result in an increase in the fair value measurement of the warrant liabilities and vice versa. • Expected volatility — Reflected the expectation that the Series H warrants would convert into common stock upon consummation of the Business Combination, and the Series H preference would be of no further effect, in which case the Series H preference would not have a material impact on the stock volatility measure. As such, the expected volatility assumptions reflect our common stock volatilities as of May 28, 2021. An increase in the expected volatility, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa. • Fair value of Series H preferred stock — Determined as of May 28, 2021, which was informed from a common stock transaction during December 2020 at a price of $10.57 per common share. We determined that this common stock transaction was a reasonable proxy for the valuation of the Series H preferred stock as of May 28, 2021 due to the proximity to an expected Business Combination; therefore, other than adjusting for the Series H exchange ratio, no further adjustments were made for the Series H concluded price per share. As of May 28, 2021, the fair value measurement of the Series H redeemable preferred stock was determined based on the observable closing price of SCH stock (ticker symbol “IPOE”) on the measurement date multiplied by the weighted average exchange ratio of the Series H preferred stock. • Dividend yield — We assumed no dividend yield because we have historically not paid out dividends to our preferred stockholders, other than to the Series 1 preferred stockholders, which is considered a special circumstance. The following table presents the changes in the fair value of the Series H warrant liabilities during the year ended December 31, 2021, prior to the Closing of the Business Combination. Warrant Liabilities Fair value as of January 1, 2021 $ 39,959 Change in valuation inputs or other assumptions (1) 121,816 Reclassification to permanent equity in conjunction with the Business Combination (2) (161,775) Fair value as of December 31, 2021 $ — _____________________ (1) Changes in valuation inputs or other assumptions are recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. (2) Upon the Closing of the Business Combination, Social Finance Series H warrants were converted into SoFi Technologies common stock warrants and reclassified to permanent equity, as the warrants no longer had features requiring liability based accounting and, therefore, represented a non-cash activity. 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 December 31, 2023, the Company had 975,861,793 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: December 31, 2023 2022 Outstanding stock options, restricted stock units and performance stock units 99,016,409 107,851,565 Outstanding common stock warrants 12,170,990 12,170,990 Conversion of convertible notes (1) 49,610,631 53,538,000 Possible future issuance under stock plans 45,384,011 26,434,957 Total common stock reserved for future issuance 206,182,041 199,995,512 _____________________ (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. Dividends Common stockholders and non-voting common stockholders are entitled to dividends when and if declared by the Board of Directors and subject to government regulation over banks and bank holding companies, as discussed further in Note 21. Regulatory Capital . There were no dividends declared or paid to common stockholders during the years ended December 31, 2023, 2022 and 2021. Voting Rights Each holder of common stock has the right to one vote per share of common stock and is entitled to notice of any stockholder meeting. Non-voting common stock does not have any voting rights or other powers. Capped Call Transactions During 2021, we entered into privately negotiated Capped Call Transactions for a total cost of $113.8 million. The Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the number of shares of our common stock that initially underlie the convertible notes. The Capped Call Transactions are expected generally to reduce the potential dilutive effect on the common stock upon any conversion of convertible notes and/or offset any potential cash payments we are required to make in excess of the principal amount of converted convertible notes, as the case may be, with such reduction and/or offset subject to a cap, subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions allow the Company to purchase shares of our common stock at a strike price equal to the initial conversion price of approximately $22.41 per share, and are subject to a cap of $32.02 per share, subject to certain adjustments under the terms of the Capped Call Transactions. Capped Call Transactions are subject to automatic exercise if they are in-the-money as of certain expiration dates during September and October 2026. Settlement is subject to acceleration pursuant to the occurrence of certain corporate events, as well as postponement no later than January 12, 2027. See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards for our accounting policy as it relates to the Capped Call Transactions. Accumulated Other Comprehensive Income (Loss) AOCI primarily consists of accumulated net unrealized gains or losses associated with our investments in AFS debt securities and foreign currency translation adjustments. The following table presents the rollforward of AOCI, inclusive of the changes in the components of other comprehensive income (loss): AFS Debt Securities Foreign Currency Translation Adjustments Total Balance at January 1, 2021 $ — $ (166) $ (166) Other comprehensive income (loss) before reclassifications (1) (1,459) 46 (1,413) Amounts reclassified from AOCI into earnings 108 — 108 Net current-period other comprehensive income (loss) (2) (1,351) 46 (1,305) Balance at December 31, 2021 $ (1,351) $ (120) $ (1,471) Other comprehensive income (loss) before reclassifications (1) (7,545) 435 (7,110) Amounts reclassified from AOCI into earnings 285 — 285 Net current-period other comprehensive income (loss) (2) (7,260) 435 (6,825) Balance at December 31, 2022 $ (8,611) $ 315 $ (8,296) Other comprehensive income before reclassifications (1) 6,238 677 6,915 Amounts reclassified from AOCI into earnings 172 — 172 Net current-period other comprehensive income (2) 6,410 677 7,087 Balance at December 31, 2023 $ (2,201) $ 992 $ (1,209) _____________________ (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 consolidated statements of operations and comprehensive loss. There were no reclassifications related to foreign currency translation adjustments during the years ended December 31, 2023, 2022 and 2021. (2) |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 14. Derivative Financial Instruments The following table presents the gains (losses) recognized on our derivative instruments: Year Ended December 31, 2023 2022 2021 Interest rate swaps (1) $ (8,782) $ 302,002 $ 42,741 Interest rate caps (1) (5,910) 8,680 (125) Home loan pipeline hedges (1) 2,558 44,152 6,474 Derivative contracts to manage future loan sale execution risk (12,134) 354,834 49,090 Interest rate swaps (2) 876 15,064 — IRLCs (1) 1,576 (3,543) (11,861) Interest rate caps (1) 5,975 (8,583) (193) Purchase price earn-out (1)(3) 9 1,094 9,312 Third party warrants (4) 78 (21) 573 Special payment (5) — — (21,181) Total $ (3,620) $ 358,845 $ 25,740 _____________________ (1) Recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (2) Represents derivative contracts to manage securitization investment interest rate risk, which are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (3) In conjunction with a loan sale agreement, we are entitled to receive payments from the buyer of the loans underlying the agreement if the internal rate of return (as defined in the loan sale agreement) on such loans exceeds a specified hurdle, subject to a dollar cap. (4) Includes amounts recorded within noninterest income—other, noninterest expense—cost of operations and noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss, the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired, as we are also a customer of the third party. (5) In conjunction with the Business Combination, we made a one-time special payment to the holders of Series 1 Redeemable Preferred Stock, which was paid from the proceeds of the Business Combination and settled contemporaneously with the Business Combination. The special payment was recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss, as this feature was accounted for as an embedded derivative that was not clearly and closely related to the host contract, and will not have a subsequent impact on our consolidated financial results. The Series 1 Redeemable Preferred Stock has no stated maturity. The following table presents information about derivative instruments subject to enforceable master netting arrangements: December 31, 2023 December 31, 2022 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Interest rate swaps $ 2,208 $ (1,347) $ 23,128 $ — Interest rate caps — (3,276) — (9,251) Home loan pipeline hedges 1 (1,328) 1,484 (80) Total, gross $ 2,209 $ (5,951) $ 24,612 $ (9,331) Derivative netting (1,347) 1,347 (80) 80 Total, net (1) $ 862 $ (4,604) $ 24,532 $ (9,251) _____________________ (1) We did not have a cash collateral requirement related to these instruments as of December 31, 2023 and December 31, 2022. The following table presents the notional amount of derivative contracts outstanding: December 31, 2023 2022 Derivative contracts to manage future loan sale execution risk: Interest rate swaps $ 12,491,000 $ 5,638,177 Interest rate caps 405,000 405,000 Home loan pipeline hedges 226,000 126,000 Interest rate caps (1) 405,000 405,000 Interest rate swaps (2) 84,000 171,823 IRLCs (3) 126,388 82,335 Total $ 13,737,388 $ 6,828,335 _____________________ (1) 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. (2) Represents interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments. (3) Amounts correspond with home loan funding commitments subject to IRLC agreements. 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 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 15. Fair Value Measurements for additional information on our derivative assets and liabilities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 15. Fair Value Measurements Recurring Fair Value Measurements The following table summarizes, by level within the fair value hierarchy, the estimated fair values of our assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets: December 31, 2023 December 31, 2022 Fair Value Fair Value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Investments in AFS debt securities (1)(2) $ 527,711 $ 67,476 $ — $ 595,187 $ 137,032 $ 58,406 $ — $ 195,438 Asset-backed bonds (2)(3) — 70,828 — 70,828 — 155,093 — 155,093 Residual investments (2)(3) — — 35,920 35,920 — — 46,238 46,238 Loans at fair value (4) — 66,198 22,056,057 22,122,255 — — 13,557,074 13,557,074 Servicing rights — — 180,469 180,469 — — 149,854 149,854 Third party warrants (5)(6) — — 630 630 — — 630 630 Derivative assets (5)(7)(8) — 2,209 — 2,209 — 24,612 — 24,612 Purchase price earn-out (5)(9) — — — — — — 54 54 IRLCs (5)(10) — — 2,155 2,155 — — 216 216 Student loan commitments (5)(10) — — 5,465 5,465 — — — — Interest rate caps (5)(8) — 3,269 — 3,269 — 9,178 — 9,178 Digital assets safeguarding asset (5)(11) — 9,292 — 9,292 — 106,826 — 106,826 Total assets $ 527,711 $ 219,272 $ 22,280,696 $ 23,027,679 $ 137,032 $ 354,115 $ 13,754,066 $ 14,245,213 Liabilities Debt (12) $ — $ 119,641 $ — $ 119,641 $ — $ 89,142 $ — $ 89,142 Residual interests classified as debt — — 7,396 7,396 — — 17,048 17,048 Derivative liabilities (5)(7)(8) — 5,951 — 5,951 — 9,331 — 9,331 Student loan commitments (5)(10) — — — — — — 236 236 Digital assets safeguarding liability (5)(11) — 9,292 — 9,292 — 106,826 — 106,826 Total liabilities $ — $ 134,884 $ 7,396 $ 142,280 $ — $ 205,299 $ 17,284 $ 222,583 _____________________ (1) The investments in AFS debt securities that were classified as Level 2 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 6. Investment Securities for additional information. (2) These assets are presented within investment securities in the consolidated balance sheets. (3) These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. See Note 7. Securitization and Variable Interest Entities for additional information. We classify 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 key inputs used to value the asset-backed bonds include the discount rate and conditional prepayment rate. 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 are expected to absorb all estimated losses based on our default assumptions for the period. We classify the residual investments as Level 3 due to the reliance on significant unobservable valuation inputs. (4) During the year ended December 31, 2023, we transferred $66,198 out of Level 3 into Level 2 relating to home loans due to an update to pricing sources utilized by third-party valuation specialists, as part of the integration of Wyndham. Personal loans and student loans classified as Level 3 do not trade in an active market with readily observable prices. Personal loans and home loans are presented within loans held for sale, at fair value . As of December 31, 2023 and December 31, 2022, student loans are presented within loans held for investment, at fair value and loans held for sale, at fair value , respectively. (5) These assets and liabilities are presented within other assets and accounts payable, accruals and other liabilities , respectively, in the consolidated balance sheets. (6) The key unobservable assumption used in the fair value measurement of the third party warrants was the price of the stock underlying the warrants. The fair value was measured as the difference between the stock price and the strike price of the warrants. As the strike price was insignificant, we concluded that the impact of time value on the fair value measure was immaterial. (7) 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. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 14. Derivative Financial Instruments for additional information. (8) Home loan pipeline hedges represent TBAs used as economic hedges of loan fair values and are classified as Level 2, as we rely on quoted market prices from similar loan pools that transact in the marketplace. 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. As of December 31, 2023 and December 31, 2022, interest rate swaps and interest rate caps were valued using the overnight SOFR curve and the implied volatilities suggested by the SOFR rate curve. These were determined to be observable inputs from active markets. (9) The purchase price earn-out provision is classified as Level 3 because of our reliance on unobservable inputs related to the underlying loan portfolio performance, such as conditional prepayment rates, annual default rates and discount rates. (10) 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. (11) The digital assets safeguarding liability and corresponding safeguarding asset are classified as Level 2, because they do not trade in active markets, and are valued using quoted prices on an active exchange that has been identified as the principal market for the underlying digital assets that are being held by our third-party custodians for the benefit of our members. Refer to Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards for additional information about our digital assets activities. (12) The fair value of our securitization debt was classified as Level 2 and 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. As of December 31, 2023 and December 31, 2022, the unpaid principal related to debt measured at fair value was $128,619 and $98,868, respectively. For the years ended December 31, 2023 and 2022, losses from changes in fair value were $2,969 and $586, respectively. The estimated amounts of gains (losses) included in earnings attributable to changes in instrument-specific credit risk, which were derived principally from observable changes in credit spread as observed in the bond market, were immaterial for the years ended December 31, 2023 and 2022. Level 3 Recurring Fair Value Rollforward The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). During the year ended December 31, 2023, we had transfers out of Level 3 of $66,198 and no transfers into Level 3. During the year ended December 31, 2022, we did not have any transfers into or out of Level 3. Fair Value at Fair Value at January 1, Impact on Earnings Purchases Sales Issuances Settlements Other Changes Transfers Out of Level 3 December 31, Assets Personal loans $ 8,610,434 $ (5,045) $ 61,951 $ (938,403) $ 13,801,065 $ (6,197,997) $ (1,432) $ — $ 15,330,573 Student loans 4,877,177 174,005 111,923 (96,678) 2,630,040 (970,690) (293) — 6,725,484 Home loans 69,463 6,694 24,783 (1,029,214) 997,492 (3,359) 339 (66,198) — Loans at fair value (1) 13,557,074 175,654 198,657 (2,064,295) 17,428,597 (7,172,046) (1,386) (66,198) 22,056,057 Servicing rights (2) 149,854 34,700 2,464 (1,259) 59,119 (64,409) — — 180,469 Residual investments (3) 46,238 1,375 3,235 (807) — (14,121) — — 35,920 IRLCs (4) 216 5,323 363 — — (3,747) — — 2,155 Student loan commitments (4) (236) 7,480 — — — (1,779) — — 5,465 Third party warrants (5) 630 — — — — — — — 630 Purchase price earn out (6) 54 9 — — — (63) — — — Liabilities Residual interests classified as debt (3) (17,048) (425) (1,203) — — 11,280 — — (7,396) Net impact on earnings $ 224,116 Fair Value at Fair Value at January 1, 2022 Impact on Earnings Purchases Sales Issuances Settlements Other Changes December 31, 2022 Assets Personal loans $ 2,289,426 $ 129,132 $ 1,677,682 $ (2,911,491) $ 9,773,705 $ (2,322,634) $ (25,386) $ 8,610,434 Student loans 3,450,837 15,786 817,864 (877,920) 2,245,499 (734,937) (39,952) 4,877,177 Home loans 212,709 (10,840) 2,901 (1,094,981) 966,177 (6,503) — 69,463 Loans at fair value (1) 5,952,972 134,078 2,498,447 (4,884,392) 12,985,381 (3,064,074) (65,338) 13,557,074 Servicing rights (2) 168,259 39,651 3,712 (22,020) 45,126 (84,874) — 149,854 Residual investments (3) 121,019 2,240 — (36,732) — (40,289) — 46,238 IRLCs (4) 3,759 (2,630) — — — (913) — 216 Third party warrants (5) 1,369 (739) — — — — — 630 Purchase price earn out (6) 4,272 1,094 — — — (5,312) — 54 Liabilities Residual interests classified as debt (3) (93,682) (6,608) — — — 83,242 — (17,048) Student loan commitments (4) 2,220 (1,876) — — — (580) — (236) Net impact on earnings $ 165,210 _____________________ (1) For loans at fair value, purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity included securitization clean-up calls of $39,936 during the year ended December 31, 2023, and $518,659 during the year ended December 31, 2022. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Issuances represent the principal balance of loans originated during the period. Settlements represent principal payments made on loans during the period. Other changes represent fair value adjustments that impact the balance sheet primarily associated with whole loan strategic repurchases, clean up calls and consolidated securitizations. During the year ended December 31, 2023, we had $66,198 of transfers out of Level 3 related to our home loans related to an update to pricing sources utilized by third-party valuation specialists. Impacts on earnings for loans at fair value are recorded within interest income—loans and securitizations , within noninterest income—loan origination, sales, and securitizations , and within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss . (2) For servicing rights, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss . (3) For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss, a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—loans and securitizations for residual investments, but does not impact the liability or asset balance, respectively. (4) For IRLCs and student loan commitments, settlements reflect funded and unfunded adjustments representing the unpaid principal balance of funded and unfunded loans during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. Purchases of IRLCs during the year ended December 31, 2023 were associated with our acquisition of Wyndham. For year-to-date periods, amounts represent the summation of the per-quarter effects. For IRLCs and student loan commitments, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (5) For purchase price earn out, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (6) For third party warrants, impacts on earnings are recorded within noninterest income—other in the consolidated statements of operations and comprehensive loss. Loans at Fair Value Gains and losses recognized in earnings include changes in accumulated interest and fair value adjustments on loans originated during the period and on loans held at the balance sheet date, as well as loan charge-offs. Changes in fair value are primarily impacted by valuation assumption changes as well as sales price execution. The estimated amount of gains (losses) included in earnings attributable to changes in instrument-specific credit risk was $(26,625), $(49,453) and $4,143 during the years ended December 31, 2023, 2022 and 2021, respectively. The gains (losses) 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. Level 3 Significant Inputs Loans Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Level 3 fair value measurements include unobservable inputs for assets or liabilities for which there is little or no market data, which requires us to develop our own assumptions. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the asset or liability. Loans The following key unobservable assumptions were used in the fair value measurement of our loans: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Conditional prepayment rate 17.5% – 29.5% 23.2% 17.3% – 25.5% 19.1% Annual default rate 4.5% – 50.4% 4.8% 3.8% – 37.7% 4.4% Discount rate 5.5% – 8.1% 5.5% 5.4% – 8.3% 6.1% Student loans Conditional prepayment rate 8.4% – 12.6% 10.5% 16.3% – 21.8% 20.4% Annual default rate 0.4% – 6.4% 0.6% 0.2% – 4.5% 0.5% Discount rate 4.1% – 8.1% 4.3% 3.6% – 8.7% 4.0% Home loans (1) Conditional prepayment rate n/m n/m 2.0% – 10.2% 7.0% Annual default rate n/m n/m 0.1% – 1.3% 0.1% Discount rate n/m n/m 5.7% – 14.1% 5.9% _____________________ (1) As of December 31, 2023, we had no Level 3 home loans. The key assumptions 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. The discount rate is primarily determined based on an underlying benchmark rate, curve and spread(s), the latter of which is determined based on factors including, but not limited to, weighted average coupon rate, prepayment rate, default rate and resulting expected duration of the assets. 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. Loans for additional loan fair value disclosures. Servicing Rights Servicing rights for personal loans and student 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: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Market servicing costs 0.1% – 1.8% 0.2% 0.2% – 0.5% 0.3% Conditional prepayment rate 17.9% – 35.5% 22.4% 17.9% – 31.3% 22.7% Annual default rate 3.3% – 22.5% 4.7% 3.4% – 7.9% 4.9% Discount rate 8.8% – 8.8% 8.8% 7.8% – 7.8% 7.8% Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 10.9% – 15.3% 12.2% 15.4% – 21.9% 17.8% Annual default rate 0.3% – 3.7% 0.6% 0.3% – 4.3% 0.4% Discount rate 8.8% – 8.8% 8.8% 7.8% – 7.8% 7.8% Home loans Market servicing costs 0.1% – 0.2% 0.2% 0.1% – 0.1% 0.1% Conditional prepayment rate 5.6% – 24.0% 8.1% 4.9% – 11.0% 5.2% Annual default rate 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Discount rate 9.2% – 10.0% 9.3% 9.0% – 9.0% 9.0% The key assumptions 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 personal loans, student loans and home 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 if the key assumptions had each of the below adverse changes: December 31, 2023 2022 Market servicing costs 2.5 basis points increase $ (6,176) $ (10,395) 5.0 basis points increase (12,351) (20,807) Conditional prepayment rate 10% increase $ (5,189) $ (4,036) 20% increase (10,098) (7,833) Annual default rate 10% increase $ (480) $ (166) 20% increase (921) (331) Discount rate 100 basis points increase $ (4,674) $ (3,905) 200 basis points increase (9,054) (7,562) 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. 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: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 12.2% – 28.3% 14.8% 17.9% – 32.0% 19.9% Annual default rate 0.5% – 6.9% 1.4% 0.4% – 5.4% 1.1% Discount rate 5.8% – 15.5% 8.7% 4.8% – 10.5% 6.7% Residual interests classified as debt Conditional prepayment rate 12.3% – 12.6% 12.4% 17.2% – 18.1% 17.8% Annual default rate 0.7% – 0.7% 0.7% 0.6% – 0.8% 0.7% Discount rate 10.0% – 10.3% 10.0% 7.5% – 7.5% 7.5% The key assumptions 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. 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: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 71.9% – 77.2% 76.3% 11.1% – 58.6% 46.3% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% - 95.0% 95.0% _____________________ (1) The aggregate amount of student loans we committed to fund was $89,369 as of December 31, 2023. The higher assumptions in the 2023 period reflect the home loan funding pipeline associated with our acquisition of Wyndham. See Note 14. Derivative Financial Instruments for the aggregate notional amount associated with IRLCs. The key assumption is defined as follows: • Loan funding probability — Our expectation of the percentage of IRLCs or student loan commitments which will become funded loans. 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. 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. Safeguarding Assets and Liabilities The following table presents the significant digital assets held by our third-party custodians on behalf of our members: December 31, 2023 December 31, 2022 Bitcoin (BTC) $ 5,425 $ 44,346 Ethereum (ETH) 3,304 37,826 Ethereum Classic (ETC) 294 2,333 Litecoin (LTC) 198 2,492 Dogecoin (DOGE) 8 4,784 Cardano (ADA) (1) — 5,217 Solana (SOL) (1) — 1,588 All other (1)(2) 63 8,240 Digital assets safeguarding liability and corresponding safeguarding asset (3) $ 9,292 $ 106,826 ___________________ (1) Effective June 9, 2023, we ended support of these digital assets, as well as several others included in the “all other” category. (2) Includes 17 and 23 digital assets as of December 31, 2023 and December 31, 2022, respectively, none of which were determined to be individually significant. (3) Refer to Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards for additional information about our digital assets activities. Financial Instruments Not Measured at Fair Value The following table summarizes the carrying values and estimated fair values, by level within the fair value hierarchy, of our assets and liabilities that are not measured at fair value on a recurring basis in the consolidated balance sheets: Fair Value Carrying Value Level 1 Level 2 Level 3 Total December 31, 2023 Assets Cash and cash equivalents (1) $ 3,085,020 $ 3,085,020 $ — $ — $ 3,085,020 Restricted cash and restricted cash equivalents (1) 530,558 530,558 — — 530,558 Loans at amortized cost (2) 836,159 — — 864,312 864,312 Other investments (3) 83,551 — 83,551 — 83,551 Total assets $ 4,535,288 $ 3,615,578 $ 83,551 $ 864,312 $ 4,563,441 Liabilities Deposits (4) $ 18,620,663 $ — $ 18,612,822 $ — $ 18,612,822 Debt (5) 5,113,775 955,306 4,024,516 — 4,979,822 Total liabilities $ 23,734,438 $ 955,306 $ 22,637,338 $ — $ 23,592,644 December 31, 2022 Assets Cash and cash equivalents (1) $ 1,421,907 $ 1,421,907 $ — $ — $ 1,421,907 Restricted cash and restricted cash equivalents (1) 424,395 424,395 — — 424,395 Loans at amortized cost (2) 307,957 — — 328,775 328,775 Other investments (3) 28,651 — 28,651 — 28,651 Total assets $ 2,182,910 $ 1,846,302 $ 28,651 $ 328,775 $ 2,203,728 Liabilities Deposits (4) $ 7,342,296 $ — $ 7,340,160 $ — $ 7,340,160 Debt (5) 5,396,740 826,242 4,219,574 — 5,045,816 Total liabilities $ 12,739,036 $ 826,242 $ 11,559,734 $ — $ 12,385,976 _____________________ (1) 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. (2) The fair value of our credit cards was determined using a discounted cash flow model with key inputs relating to weighted average lives, expected lifetime loss rates and discount rate. The fair value of our commercial and consumer banking and senior secured 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. (3) Other investments include FRB stock and FHLB stock, which are presented within other assets in the consolidated balance sheets. (4) The fair values of our deposits without contractually defined maturities (such as demand and savings deposits) and our noninterest-bearing deposits approximate their carrying values. The fair value of our time-based deposits was determined using a discounted cash flow model based on rates currently offered for deposits of similar remaining maturities. (5) The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt and revolving credit facility debt were classified as Level 2 based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was classified as Level 2 and 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. Nonrecurring Fair Value Measurements Investments in equity securities of $22,920 and $22,825 as of December 31, 2023 and 2022, respectively, which are presented within other assets in the consolidated balance sheets, include investments for which fair values are not readily determinable, which we elect to measure using the measurement alternative method of accounting. The fair value measurements are classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs in the fair value measurements. The balances were primarily composed of a $19,739 investment valued under the measurement alternative method during 2022 that was a former equity method investment. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 16. Share-Based Compensation 2011 Stock Option Plan Prior to the Business Combination, the Company’s Amended and Restated 2011 Stock Option Plan (the “2011 Plan”) allowed the Company to grant shares of common stock to employees, non-employee directors and non-employee third parties. As of December 31, 2023, outstanding awards to non-employee third parties under the 2011 Plan were not material. The Company also had shares authorized under a stock plan assumed in a 2020 business combination, which were assumed by the 2011 Plan. Upon the Closing, the remaining unallocated share reserve under the 2011 Plan was cancelled and no new awards may be granted under such plan. Awards outstanding under the 2011 Plan were assumed by SoFi Technologies upon the Closing and continue to be governed by the terms of the 2011 Plan. 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. Under the 2021 Plan, effective January 1, 2022, our Board of Directors authorized the issuance of an additional 8,937,242 shares. In the third quarter of 2022, the Company’s stockholders approved the amendment and restatement of the 2021 Stock Option and Incentive Plan (the “Amended and Restated 2021 Plan”), including a modification to the evergreen provision and an increase in the number of shares of common stock available for issuance under the plan. As of December 31, 2023, the Amended and Restated 2021 Plan includes an aggregate of 151,677,954 shares of common stock authorized for issuance of awards. The Amended and Restated 2021 Plan allows for the number of authorized shares to increase on the first day of each fiscal year beginning on January 1, 2023 and ending on and including January 1, 2030 equal to the lesser of (a) five percent of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year, and (b) such smaller number of shares of common stock as determined by the Board of Directors. The Amended and Restated 2021 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock, RSUs (including PSUs), 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. Effective January 1, 2023, we approved a plan to allow our non-employee directors to elect, on an annual basis, to defer their cash retainers into equity awards, and/or to defer their RSU grants, which vest in accordance with the grant terms (collectively referred to as DSUs). DSUs are equity awards that entitle the holder to shares of our common stock when the awards vest. Directors may choose to receive their deferred stock distributions in a lump sum or in installments over different time periods. DSUs are measured based on the fair value of our common stock on the date of grant. DSU activity is presented with RSUs in the disclosures below. Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the consolidated statements of operations and comprehensive loss: Year Ended December 31, 2023 2022 2021 Technology and product development $ 91,400 $ 77,674 $ 61,431 Sales and marketing 26,783 24,176 16,140 Cost of operations 10,662 17,837 11,743 General and administrative 142,371 186,307 149,697 Total $ 271,216 $ 305,994 $ 239,011 Common Stock Valuations Subsequent to the Business Combination, we determine the value of our common stock based on the observable daily closing price of SoFi’s stock (ticker symbol “SOFI”). Stock Options The terms of the stock option grants, including the exercise price per share and vesting periods, are determined by our Board of Directors . At the discretion and determination of our Board of Directors , the 2021 Amended and Restated Plan allows for stock options to be granted that may be exercised before the stock options have vested. The 2011 Plan, which continues to govern awards outstanding under that plan that were assumed by SoFi Technologies upon the Closing, had a similar provision. Stock options were typically granted at exercise prices equal to the fair value of our common stock at the date of grant. Our stock options typically vest at a rate of 25% after one year from the vesting commencement date and then monthly over an additional three-year period. While the vesting schedule noted is typical, stock options have been issued under other vesting schedules. Our stock options typically expire ten years from the grant date or within 90 days of employee termination. The following is a summary of stock option activity: Number of Weighted Average Weighted Average Outstanding as of January 1, 2023 18,749,679 $ 7.43 4.7 Exercised (796,883) 1.44 Expired (56,064) 6.67 Outstanding as of December 31, 2023 17,896,732 $ 7.70 3.8 Exercisable as of December 31, 2023 17,896,732 $ 7.70 3.8 The aggregate intrinsic value of stock options exercised during the years ended December 31, 2023, 2022 and 2021 was $5.6 million, $15.0 million and $131.2 million, respectively. As of December 31, 2023, the aggregate intrinsic value of stock options outstanding and stock options exercisable was $40.3 million and $40.3 million, respectively. Total compensation cost related to unvested stock options not yet recognized as of December 31, 2023 was immaterial. Restricted Stock Units RSUs, inclusive of DSUs, are equity awards granted to employees that entitle the holder to shares of our common stock when the awards vest. For employees hired during 2023, new hire RSU grants typically vest between 12.5% to 25% on the first vesting date, which occurs approximately six months after the date of grant, and ratably each quarter of the ensuing 6- to 14-quarter period. For employees hired during 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. RSUs are measured based on the fair value of our common stock on the date of grant. The following table summarizes RSU activity: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2023 69,538,139 $ 9.07 Granted 38,399,214 6.51 Vested (1) (33,564,543) 8.42 Forfeited (9,493,314) 8.86 Outstanding as of December 31, 2023 64,879,496 $ 7.95 _____________________ (1) The total fair value, based on grant date fair value, of RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $282.6 million, $249.9 million, and $139.6 million, respectively. The weighted average grant date fair value of RSUs issued during the years ended December 31, 2022 and 2021was $7.32 and $16.92, respectively. As of December 31, 2023, there was $473.4 million of unrecognized compensation cost related to unvested RSUs, inclusive of DSUs, which will be recognized over a weighted average period of approximately 2.0 years. Performance Stock Units PSUs are equity awards granted to employees that, upon vesting, entitle the holder to shares of our common stock. During 2021 and 2023, we granted PSUs that will vest, if at all, on a graded basis during the four-year period commencing on May 28, 2022, subject to the achievement of specified performance goals, such as the volume-weighted average closing price of our stock over a 90-trading day period (“Target Hurdles”) and, now that we are a bank holding company, maintaining certain minimum standards applicable to bank holding companies. All PSUs are subject to continued employment on the date of vesting. In the event of a Sale Event (as defined in the 2021 Amended and Restated Plan), the awards may automatically vest subject to the satisfaction of the Target Hurdles by reference to the sale price, without regard to any other vesting conditions. The following table summarizes PSU activity: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2023 19,563,747 $ 9.84 Granted 97,752 3.36 Forfeited (3,421,318) 7.52 Outstanding as of December 31, 2023 16,240,181 $ 10.29 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 determined 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: Input Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Risk-free interest rate 1.6% 1.6% 0.8% – 0.8% Expected volatility 37.7% 37.7% 34.9% – 35.9% Fair value of common stock $12.06 $12.06 $16.99 – $23.21 Dividend yield —% —% —% Our use of a Monte Carlo simulation model requires the use of subjective assumptions: • Risk-free interest rate — Based on the U.S. Treasury rate at the time of grant commensurate with the remaining term of the PSUs. • Expected volatility — Based on the implied volatility of our common stock from a set of comparable publicly-traded companies. • Fair value of common stock — Based on the closing stock price on the date of grant. • Dividend yield — We assumed no dividend yield because we have historically not paid out dividends to common stockholders. The weighted average grant date fair value of PSUs issued during the years ended December 31, 2022 and 2021 was $3.71 and $9.50, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17. Income Taxes Loss before income taxes consisted of the following: Year Ended December 31, 2023 2022 2021 Domestic $ (131,899) $ (299,751) $ (461,023) Foreign (1) (169,259) (18,970) (20,154) Loss before income taxes $ (301,158) $ (318,721) $ (481,177) _________________ (1) Foreign loss before income taxes for the year ended December 31, 2023 reflects the impact of goodwill impairment losses related to the Technisys reporting unit. Income tax expense (benefit) consisted of the following: Year Ended December 31, 2023 2022 2021 Current tax expense: U.S. federal $ 5,842 $ — $ — U.S. state and local 8,640 4,275 1,481 Foreign 930 909 75 Total current tax expense 15,412 5,184 1,556 Deferred tax expense (benefit): U.S. state and local (115) 543 1,222 Foreign (15,713) (4,041) (18) Total deferred tax expense (benefit) (15,828) (3,498) 1,204 Income tax expense (benefit) $ (416) $ 1,686 $ 2,760 Our income tax benefit position in 2023 was primarily attributable to income tax benefits from foreign losses in jurisdictions with net deferred tax liabilities related to Technisys. These benefits were offset by income tax expense associated with the profitability of SoFi Bank in state jurisdictions where separate filings are required, as well as federal taxes where our tax credits and loss carryforwards may be limited. See Note 2. Business Combinations and Note 8. Goodwill and Intangible Assets for additional information. The table below presents a reconciliation of the expected income tax benefit at the statutory federal income tax rate to the income tax expense (benefit) at the effective income tax rate: Year Ended December 31, 2023 2022 2021 Expected income tax benefit at federal statutory rate $ (63,243) $ (66,944) $ (101,047) Goodwill impairment 51,907 — — Valuation allowance for deferred tax assets 14,461 27,101 92,197 Non-deductible compensation expense (1) 15,579 23,100 23,838 State and local income taxes, net of federal benefit 6,725 4,591 2,096 Share-based compensation 554 19,811 (33,950) Research and development tax credits (22,249) (12,496) (7,067) Change in fair value of warrants — — 22,539 Other (4,150) 6,523 4,154 Income tax expense (benefit) $ (416) $ 1,686 $ 2,760 Effective tax rate 0.14 % (0.53) % (0.57) % _________________ (1) Reflects the impact of applying Section 162(m), which prohibits deduction of certain excess employee compensation to certain “covered employees”. The table below presents a reconciliation of unrecognized tax benefits: Year Ended December 31, 2023 2022 2021 Unrecognized tax benefits at beginning of year $ 23,730 $ 6,972 $ 5,117 Gross increases – tax positions in prior period (1) 493 10,944 582 Gross decreases – tax positions in prior period (27) (98) — Gross increases – tax positions in current period 5,491 6,236 1,273 Lapse of statute of limitations — (324) — Unrecognized tax benefits at end of year $ 29,687 $ 23,730 $ 6,972 _________________ (1) Increases to our unrecognized tax benefits in 2022 were primarily related to the recognition of historical tax reserves that existed at the time of the Technisys Merger and were primarily recorded through goodwill. As of December 31, 2023 and 2022 unrecognized tax benefits of $7,525 and $6,812, respectively, if recognized, would affect our effective tax rate in a future period. As of December 31, 2021, none of the unrecognized tax benefits, if recognized, would affect our effective tax rate in a future period, as the tax benefit would increase a deferred tax asset, which is offset with a valuation allowance. We expect to continue to accrue unrecognized tax benefits for certain recurring tax positions; however, we do not expect any other significant increases or decreases to unrecognized tax benefits within the next twelve months. Interest and penalties recorded during the year ended December 31, 2023 and 2022 were immaterial. No interest and penalties were recorded during the year ended December 31, 2021. The table below presents the significant components of the Company’s net deferred tax liabilities: December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 236,492 $ 287,473 Operating lease liabilities 21,554 24,009 Share-based compensation 24,730 27,571 Research and development credits 77,395 56,811 Accruals and other 59,364 32,130 Gross deferred tax assets 419,535 427,994 Valuation allowance (345,611) (318,410) Total deferred tax assets $ 73,924 $ 109,584 Deferred tax liabilities: Amortization $ (42,261) $ (101,971) Operating lease ROU assets (18,790) (20,597) Servicing rights (49,202) (41,168) Other (3,900) (2,330) Total deferred tax liabilities (114,153) (166,066) Deferred tax liabilities, net $ (40,229) $ (56,482) The table below details the activity of the deferred tax asset valuation allowance: Balance at Beginning of Period Additions Deductions Balance at End of Period Charged to Costs and Expenses Charged to Other Accounts Year Ended December 31, 2021 Deferred tax asset valuation allowance $ 141,101 $ 125,347 $ — $ — $ 266,448 Year Ended December 31, 2022 Deferred tax asset valuation allowance 266,448 37,536 14,426 — 318,410 Year Ended December 31, 2023 Deferred tax asset valuation allowance 318,410 27,201 — — 345,611 During the years ended December 31, 2023, 2022, and 2021, we maintained a full valuation allowance against our net deferred tax assets, in applicable jurisdictions, increasing our valuation allowance by $27,201, $37,536 and $125,347, respectively. In certain foreign and state jurisdictions where sufficient deferred tax liabilities exist, no valuation allowance is recognized. We will continue to recognize a full valuation allowance until there is sufficient positive evidence to support its release. The table below provides information about our net operating loss carryforwards by jurisdiction: December 31, 2023 Expiration U.S. federal (1) $ 47,943 2036 – 2037 633,125 Indefinite U.S. state (2) 879,425 2024 – 2042 85,254 Indefinite Foreign 35,411 2024 – 2043 80,417 Indefinite _____________________ (1) Federal net operating loss carryforwards generated in periods after December 31, 2017 are subject to an 80% limitation when used in future tax periods as a result of the TCJA passed in 2017. The CARES Act provided for the temporary elimination of the 80% limitation for any net operating loss utilization prior to January 1, 2021. (2) State conformity to either TCJA or the CARES Act, which was signed into law in March 2020, is established by each state’s local statutes and conformity to one act does not require conformity to both acts. Federal and state research and development tax credits of $95,211 as of December 31, 2023 will expire at various dates beginning in 2031, if not utilized. The Company files a federal income tax return in the United States and also files in various state and foreign jurisdictions. The following are the major tax jurisdictions in which the Company operates and the earliest tax year subject to examination: Jurisdiction Tax year United States 2011 California 2012 New York State and City 2016 Argentina 2018 |
Commitments, Guarantees, Concen
Commitments, Guarantees, Concentrations and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees, Concentrations and Contingencies | Note 18. Commitments, Guarantees, Concentrations and Contingencies Commitments As of December 31, 2023, we had $670.3 million in financial commitments outstanding related to sponsorship, advertising, and cloud computing agreements under which we are required to make payments over the life of the agreements ranging from one We made payments related to these commitments totaling $67,277, $50,829 and $22,017 during the years ended December 31, 2023, 2022 and 2021, respectively. Amounts payable in future periods are as follows: December 31, 2023 2024 $ 85,807 2025 58,330 2026 46,280 2027 46,845 2028 43,237 Thereafter 389,830 Total $ 670,329 We also have commitments to fund home loans and student loans that are only cancellable at the option of the borrower. The commitments are measured at fair value on a recurring basis. See Note 15. Fair Value Measurements for additional information. As part of our community reinvestment initiatives, we have a commitment to fund a line of credit to be used to finance housing and stimulate economic development in low- to moderate-income communities. As of December 31, 2023, we funded $1.2 million of loans, which are presented within loans held for investment in the consolidated balance sheets, and had $18.8 million of the total $20.0 million commitment outstanding. For information on our leases, see Note 9. Property, Equipment, Software and Leases . 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 and deposit balances 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 the periods presented. Within our Technology Platform segment, we have a relatively smaller number of clients compared to our lending and financial services businesses. As such, the loss of one or a few of our top clients could be significant to that portion of our business. No individual client accounted for 10% or more of consolidated total net revenues for 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 deposits or 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 the ordinary course of business, the Company may be subject to a variety of pending legal proceedings. While we are unable to predict the ultimate outcome of these actions, we believe that any ultimate liability arising from any of these actions will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. However, many of these matters are in various stages of proceedings and further developments could cause management to revise its assessment of these matters. Our assessments are based on our knowledge and historical experience, as well as the specific facts and circumstances asserted, but the ultimate outcome of any matter could require payment substantially in excess of the amount that we have accrued and/or disclosed. Regardless of the final outcome, defending lawsuits, claims, government and self-regulatory organization 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. Guarantees We have three types of repurchase obligations that we account for as financial guarantees. First, we issue financial guarantees to GSEs on loans that we sell to GSEs, which manifest as repurchase requirements if it is later discovered that loans sold to a GSE do not meet their guidelines. We have a three-year repurchase obligation from the time of origination to buy back originated loans that do not meet GSE guidelines, and we are required to pay the full initial purchase price back to the GSE. We recognize a liability for the full amount of expected loan repurchases, which we estimate based on historical repurchase activity for similar types of loans and assess whether adjustments to our historical loss experience are required based on current conditions and forecasts of future conditions, as appropriate, as our exposure under the guarantee is typically short-term in nature. The liability we record is equal to what we expect to buy back and, therefore, approximates fair value. Second, we make standard representations and warranties related to other loan transfers, breaches of which would require us to repurchase the transferred loans. Finally, we have limited repurchase obligations for certain loan transfers associated with credit-related events, such as early prepayment or events of default within 90 days after origination. In the event of a repurchase, we are typically required to pay the purchase price of the loans transferred. As of December 31, 2023 and 2022, we accrued liabilities within accounts payable, accruals and other liabilities in the consolidated balance sheets of $5.9 million and $1.4 million, respectively, related to our estimated repurchase obligation, the former of which includes liabilities assumed in our acquisition of Wyndham. The corresponding charges for changes in the estimated obligation are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. As of December 31, 2023 and 2022, the amounts associated with loans sold that were subject to the terms and conditions of our repurchase obligations totaled $6.7 billion and $5.1 billion, respectively. As of December 31, 2023 and 2022, we had a total of $6.4 million and $9.1 million, respectively, in letters of credit outstanding with financial institutions, which were issued for the purpose of securing certain of our operating lease obligations. A portion of the letters of credit was collateralized by $1.3 million and $3.1 million of our cash as of December 31, 2023 and 2022, respectively, which is included within restricted cash and restricted cash equivalents in the consolidated balance sheets. As of December 31, 2023 and 2022, we had a total of $27.2 million and $11.7 million, respectively, in letters of credit outstanding with the FHLB, which serve as collateral for public deposits and were collateralized by loans. Mortgage Banking Regulatory Mandates We are subject to certain state-imposed minimum net worth requirements for the states in which we are engaged in the business of a residential mortgage lender. Noncompliance with these requirements on an annual basis could result in potential fines or penalties imposed by the applicable state. Future events or changes in mandates may affect our ability to meet mortgage banking regulatory requirements. As of December 31, 2023 and 2022, we were in compliance with all minimum net worth requirements and, therefore, have not accrued any liabilities related to fines or penalties. Retirement Plans We have a 401(k) plan that covers all employees meeting certain eligibility requirements. The 401(k) plan is designed to provide tax-deferred retirement benefits in accordance with the provisions of Section 401(k) of the Internal Revenue Code. Eligible employees may defer up to 100% of eligible compensation up to the annual maximum as determined by the IRS. Our contributions to the plan are discretionary. We have not made any contributions to the plan to date. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Note 19. Loss Per Share Prior to the Business Combination, our participating interests included all series of our preferred stock, and we computed loss per share attributable to common stock using the two-class method required for 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 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. Subsequent to the Business Combination, we did not have any participating interests. Series 1 Redeemable Preferred Stock has preferential cumulative dividend rights. For each period presented, we increased net loss by the contractual amount of dividends payable to holders of Series 1 Redeemable Preferred Stock. Basic loss per share of common stock is computed by dividing net loss, adjusted for the impact of Series 1 Redeemable Preferred Stock dividends, by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share of common stock is computed by dividing net income, adjusted for the impact of Series 1 Redeemable Preferred Stock dividends, by the weighted average number of shares of common stock outstanding during the period plus amounts representing the dilutive effect of contingently issuable shares including PSU awards which require future service as a condition of delivery of the underlying common stock, RSUs, outstanding options, outstanding warrants and dilution resulting from the conversion of convertible notes, if applicable. The adjustment for convertible notes reflects the conversion price at the end of the reporting period. We excluded the effect of all potentially dilutive common stock elements from the denominator in the computation of diluted earnings (loss) per share in the periods where their inclusion would have been anti-dilutive. The calculations of basic and diluted loss per share were as follows: Year Ended December 31, 2023 2022 2021 Numerator: Net loss $ (300,742) $ (320,407) $ (483,937) Less: Redeemable preferred stock dividends (40,425) (40,425) (40,426) Net loss attributable to common stockholders – basic and diluted $ (341,167) $ (360,832) $ (524,363) Denominator: Weighted average common stock outstanding – basic 945,024,160 900,886,113 526,730,261 Weighted average common stock outstanding – diluted 945,024,160 900,886,113 526,730,261 Loss per share – basic $ (0.36) $ (0.40) $ (1.00) Loss per share – diluted $ (0.36) $ (0.40) $ (1.00) 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 the year. Year Ended December 31, 2023 2022 2021 Common stock options 17,896,732 18,749,679 21,171,147 Common stock warrants 12,170,990 12,170,990 12,170,990 Unvested RSUs (1) 64,879,496 69,538,139 48,687,524 Unvested PSUs 16,240,181 19,563,747 22,970,396 Convertible notes (2) 49,610,631 53,538,000 53,538,000 Contingent common stock (3) 45,859 6,305,595 — ____________________ (1) As of December 31, 2023, includes DSUs granted to non-employee directors. See Note 16. Share-Based Compensation for additional information. (2) Represents the shares of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the date indicated. See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 12. Debt for additional information. (3) As of December 31, 2023 and December 31, 2022, includes contingently returnable common stock in connection with the Technisys Merger during 2022, which consists of shares held in escrow pending resolution of outstanding indemnification claims by SoFi. These shares were issued in 2022 and partially released in 2023. See Note 2. Business Combinations |
Business Segment and Geographic
Business Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Information | Note 20. Business Segment and Geographic Information Segment Organization and Reporting Framework We have 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 our organizational structure. Each segment has a segment manager who reports directly to the 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. 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 first quarter of 2022, we implemented an 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, and a funds charge for the use of funds, such as loan originations and credit card. 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 our broader funding profile. As the durations of assets 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 reportable 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 year ended December 31, 2021 would not have had a material impact on Lending or Financial Services segment net interest income. The accounting policies of our reportable segments are consistent with those described in Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards , 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. 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 the year ended December 31, 2023 and the majority of the year ended December 31, 2022, and from our warehouse financing for the year ended December 31, 2021. 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: (i) technology products and solutions revenue, which is 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, account funding, direct deposit, authorizations and processing, payments functionality and check account balance features, (ii) beginning in March 2022, 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, and (iii) beginning in the third quarter of 2023, interest income earned on segment cash balances, for which prior period amounts were determined to be immaterial. See Note 2. Business Combinations for additional information on the Technisys Merger. Financial Services. The Financial Services segment primarily includes our SoFi Money product (primarily inclusive of checking and savings accounts, as well as cash management accounts), SoFi Invest product, SoFi Credit Card product, SoFi Relay personal finance management product and other financial services, such as lead generation and content for other financial services institutions and our members. 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. 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, interchange fees on our member debit and credit transactions, and fees related to pay for order flow and share lending arrangements in SoFi Invest. We also earn referral fees in connection with referral activity we facilitate through our platform. 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, 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 (expense) 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 revenue (loss) 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), noninterest income related to gains and losses on extinguishment of corporate borrowings including our convertible notes, and interest expense on other corporate borrowings, such as our revolving credit facility and the amortization of debt issuance costs and original issue discount on our convertible notes. Segment Results The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment: Year Ended December 31, 2023 Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Net revenue Net interest income (expense) $ 960,773 $ 1,514 $ 334,847 $ 1,297,134 $ (35,394) $ 1,261,740 Noninterest income (expense) (2) 409,848 350,826 101,668 862,342 (1,293) 861,049 Total net revenue (loss) $ 1,370,621 $ 352,340 $ 436,515 $ 2,159,476 $ (36,687) $ 2,122,789 Servicing rights – change in valuation inputs or assumptions (3) (34,700) — — (34,700) Residual interests classified as debt – change in valuation inputs or assumptions (4) 425 — — 425 Directly attributable expenses (513,073) (257,554) (436,777) (1,207,404) Contribution profit (loss) $ 823,273 $ 94,786 $ (262) $ 917,797 Year Ended December 31, 2022 Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Net revenue Net interest income (expense) $ 531,480 $ — $ 92,574 $ 624,054 $ (39,958) $ 584,096 Noninterest income (expense) (2) 608,511 315,133 75,102 998,746 (9,307) 989,439 Total net revenue (loss) $ 1,139,991 $ 315,133 $ 167,676 $ 1,622,800 $ (49,265) $ 1,573,535 Servicing rights – change in valuation inputs or assumptions (3) (39,651) — — (39,651) Residual interests classified as debt – change in valuation inputs or assumptions (4) 6,608 — — 6,608 Directly attributable expenses (442,945) (238,620) (367,102) (1,048,667) Contribution profit (loss) $ 664,003 $ 76,513 $ (199,426) $ 541,090 Year Ended December 31, 2021 Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Net revenue Net interest income (expense) $ 258,102 $ (29) $ 3,765 $ 261,838 $ (9,594) $ 252,244 Noninterest income (2) 480,221 194,915 54,313 729,449 3,179 732,628 Total net revenue (loss) $ 738,323 $ 194,886 $ 58,078 $ 991,287 $ (6,415) $ 984,872 Servicing rights – change in valuation inputs or assumptions (3) 2,651 — — 2,651 Residual interests classified as debt – change in valuation inputs or assumptions (4) 22,802 — — 22,802 Directly attributable expenses (364,169) (130,439) (192,996) (687,604) Contribution profit (loss) $ 399,607 $ 64,447 $ (134,918) $ 329,136 _____________________ (1) Within the Technology Platform segment, intercompany fees were $22,199, $7,604 and $1,863 for the years ended December 31, 2023, 2022 and 2021, respectively. The equal and offsetting intercompany expenses are reflected within all three segments’ directly attributable expenses, as well as within expenses not allocated to segments. The intercompany revenues and expenses are eliminated in consolidation. The revenues are eliminated within Corporate/Other and the expenses are adjusted in our reconciliation of directly attributable expenses below. (2) Refer to Note 3. Revenue for a reconciliation of revenue from contracts with customers to total noninterest income (expense). (3) Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment, default rates and discount rates. This non-cash change, which is recorded within noninterest income in the consolidated statements of operations and comprehensive 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, 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 consolidated statements of operations and comprehensive 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. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources. Year Ended December 31, 2023 2022 2021 Reportable segments total contribution profit $ 917,797 $ 541,090 $ 329,136 Corporate/Other total net loss (36,687) (49,265) (6,415) Intercompany expenses 22,199 7,604 1,863 Servicing rights – change in valuation inputs or assumptions 34,700 39,651 (2,651) Residual interests classified as debt – change in valuation inputs or assumptions (425) (6,608) (22,802) Expenses not allocated to segments: Share-based compensation expense (271,216) (305,994) (239,011) Employee-related costs (1) (250,326) (184,764) (143,847) Depreciation and amortization expense (201,416) (151,360) (101,568) Goodwill impairment expense (247,174) — — Fair value change of warrant liabilities — — (107,328) Special payment (2) — — (21,181) Other corporate and unallocated expenses (3) (268,610) (209,075) (167,373) Loss before income taxes $ (301,158) $ (318,721) $ (481,177) _____________________ (1) Includes compensation, benefits, restructuring charges, 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 a special payment to the Series 1 preferred stockholders in connection with the Business Combination. (3) 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 and FDIC insurance costs, foreign currency translation adjustments and transaction-related expenses. Geographic Information The following tables present total net revenue from external customers and total assets attributed to the United States and to all foreign countries in total in which we operate. We attribute total net revenue and total assets based on the country of domicile of the legal entity. No individual foreign country had material total net revenue during any of the years presented. Our long-lived assets as of the dates indicated were not considered by management to be significant relative to total assets. The majority of our long-lived assets were located in the United States as of the dates indicated. Year Ended December 31, 2023 2022 2021 United States $ 2,028,112 $ 1,504,680 $ 981,705 All foreign countries 94,677 68,855 3,167 Total net revenue $ 2,122,789 $ 1,573,535 $ 984,872 December 31, 2023 2022 United States $ 29,133,417 $ 17,921,296 All foreign countries 941,441 1,086,379 Total assets $ 30,074,858 $ 19,007,675 |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Regulatory Capital | Note 21. Regulatory Capital SoFi Technologies, a bank holding company, and SoFi Bank, a nationally chartered association, are required to comply with regulatory capital rules issued by the Federal Reserve and other U.S. banking regulators, including the OCC and FDIC. From time to time, we may contribute capital to SoFi Bank. We are required to manage our capital position to maintain sufficient capital to satisfy these regulatory rules and support our business activities, including the requirement to maintain minimum regulatory capital ratios in accordance with the Basel Committee on Banking Supervision standardized approach for U.S. banking organizations (U.S. Basel III). If the Federal Reserve finds that we are not “well-capitalized” or “well-managed”, we would be required to take remedial action, which may contain additional limitations or conditions relating to our activities. The Federal Reserve and the OCC have authority to prohibit bank holding companies and banks, respectively, from paying dividends if, in their opinion, the payment of dividends would constitute an unsafe or unsound practice. Under the National Bank Act, SoFi Bank generally may, without prior approval of the OCC, declare a dividend so long as the total amount of all dividends (common and preferred), including the proposed dividend, in the current year do not exceed net income for the current year to date plus retained net income for the prior two years. However, taking into account a wide range of factors, the OCC may object and therefore prevent SoFi Bank from paying dividends to the Company. As such, as of December 31, 2023, the Bank would not have any funds free of restrictions that are available for dividend payments. Restrictions on the ability of SoFi Bank to pay dividends to the parent company could also impact the Company’s ability to pay dividends to common stockholders. Additionally, under the Federal Reserve’s capital rules, our bank holding company’s ability to pay dividends is restricted if we do not maintain capital above the capital conservation buffer, as discussed below. Further, a policy statement of the Federal Reserve provides that, among other things, a bank holding company generally should not pay dividends on regulatory capital instruments if its net income for the past year is not sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality, and overall financial condition. Based on this Federal Reserve policy, as of December 31, 2023, the Company generally would not have any funds free of restrictions available for dividend payments on regulatory capital instruments. These requirements establish required minimum ratios for 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. 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. In addition, the Federal Reserve and the OCC have authority to require banking organizations subject to their supervision to hold additional amounts of capital in excess of the minimum risk-based capital ratios. The risk- and leverage-based capital ratios and amounts are presented below: December 31, 2023 December 31, 2022 ($ in thousands) Amount Ratio Amount Ratio Required Minimum (1) Well-Capitalized Minimum (2) SoFi Bank CET1 risk-based capital $ 3,331,616 17.3 % $ 1,162,024 14.6 % 7.0 % 6.5 % Tier 1 risk-based capital 3,331,616 17.3 % 1,162,024 14.6 % 8.5 % 8.0 % Total risk-based capital 3,386,105 17.6 % 1,202,429 15.1 % 10.5 % 10.0 % Tier 1 leverage 3,331,616 15.0 % 1,162,024 15.3 % 4.0 % 5.0 % Risk-weighted assets 19,244,841 7,972,956 Quarterly adjusted average assets 22,273,285 7,615,481 SoFi Technologies CET1 risk-based capital $ 3,439,969 15.0 % $ 3,188,341 20.3 % 7.0 % n/a Tier 1 risk-based capital 3,439,969 15.0 % 3,188,341 20.3 % 8.5 % n/a Total risk-based capital 3,494,458 15.3 % 3,228,746 20.6 % 10.5 % n/a Tier 1 leverage 3,439,969 12.8 % 3,188,341 21.8 % 4.0 % n/a Risk-weighted assets 22,883,185 15,695,217 Quarterly adjusted average assets 26,782,318 14,592,551 ___________________ (1) Required minimums presented for risk-based capital ratios include the required capital conservation buffer. (2) The well-capitalized minimum measure is applicable at the bank level only. |
Parent Company Condensed Financ
Parent Company Condensed Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Condensed Financial Information | Note 22. Parent Company Condensed Financial Information The following parent company condensed financial statements are prepared in accordance with Regulation S-X of the SEC, which require such disclosures when the restricted net assets of consolidated subsidiaries exceed 25% of consolidated net assets. The condensed balance sheets as of December 31, 2023 and 2022 reflect balances at SoFi Technologies, Inc. The condensed statement of operations and comprehensive loss and condensed statement of cash flows reflect the activity of Social Finance, Inc. from January 1, 2021 through the close of the Business Combination in May 2021, and reflect the activity of SoFi Technologies, Inc. subsequent to the close of the Business Combination. Refer to Note 2. Business Combinations for additional information on the Business Combination. SoFi Technologies, Inc. Condensed Statements of Cash Flows (Parent Company Only) (In Thousands) Year Ended December 31, 2023 2022 2021 Operating activities Net cash (used in) provided by operating activities $ (42,618) $ 290,298 $ (136,134) Investing activities Changes in investments in subsidiaries $ 79,185 $ (284,295) $ (3,231,314) Issuances of notes to subsidiaries — — (312) Proceeds from securitization investments — — 106,994 Proceeds from non-securitization investments — — 107,534 Other investing activities — — 13,122 Net cash provided by (used in) investing activities $ 79,185 $ (284,295) $ (3,003,976) Financing activities Net change in debt facilities $ — $ — $ 144,339 Proceeds from other debt issuances — — 1,010,728 Repayment of other debt — — (250,000) Taxes paid related to net share settlement of share-based awards (15,300) (8,983) (42,644) Payment of redeemable preferred stock dividends (20,213) — — Redemptions of redeemable common and preferred stock — — (282,859) Proceeds from Business Combination and PIPE Investment — — 1,989,851 Proceeds from warrant exercises — — 95,047 Purchase of capped calls — — (113,760) Other financing activities (1,054) 2,610 (4,605) Net cash (used in) provided by financing activities $ (36,567) $ (6,373) $ 2,546,097 Effect of exchange rates on cash and cash equivalents — 571 46 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents $ — $ 201 $ (593,967) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 201 — 593,967 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 201 $ 201 $ — Notes to Parent Company Condensed Financial Information Note 1. Debt In October 2021, SoFi Technologies, Inc. issued $1.2 billion aggregate principal amount of convertible notes due 2026. In December 2023, SoFi Technologies, Inc. repurchased $88.0 million aggregate principal amount of the convertible notes, which were settled through the issuance of 9,490,000 shares of common stock. In April 2023, SoFi Technologies, Inc. entered into the Amended and Restated Credit Agreement, which amended and restated the Original Credit Agreement entered into by Social Finance, Inc. in September 2018 to, among other things, change the borrower entity under the revolving credit facility to SoFi Technologies, Inc. See Note 12. Debt for additional information on these debt arrangements. Note 2. Temporary Equity See Note 13. Equity for information on the redeemable preferred stock held at SoFi Technologies, Inc. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 23. Subsequent Events Management of the Company performed an evaluation of subsequent events that occurred after the balance sheet date through the date of this Annual Report on Form 10-K, and determined that there were no subsequent events to report. |
Organization, Summary of Sign_2
Organization, Summary of Significant Accounting Policies and New Accounting Standards (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The 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 consolidated financial statements were prepared in conformity with GAAP and in accordance with the rules and regulations of the SEC. In our consolidated financial statements, we made the following presentation changes in 2023: • in our consolidated statements of operations and comprehensive loss, (i) combined the financial statement line items for interest income—loans and interest income—securitizations and presented within interest income—loans and securitizations ; and • in our consolidated statements of operations and comprehensive loss, (i) combined the financial statement line items for noninterest income—loan origination and sales and noninterest income—securitizations and presented within noninterest income—loan origination, sales and securitizations . In all instances, the respective prior period amounts were recast to conform to the current period presentation. |
Use of Judgments, Assumptions and Estimates | The preparation of our consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the reported amounts of assets, liabilities, revenue, expenses, and the disclosures of contingent assets and liabilities. These estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions, and the differences could be material. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances. These assumptions and estimates include, but are not limited to, the following: (i) fair value measurements, (ii) business combinations, and (iii) goodwill. |
Business Combinations | We account for acquisitions of entities or asset groups that qualify as businesses using the acquisition method of accounting. Purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date, which are measured in accordance with fair value measurement accounting principles. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. The excess of the total purchase consideration over the fair value of the identified net assets acquired is recognized as goodwill. The results of the acquired businesses are included in our results of operations beginning from the date of acquisition. Acquisition-related costs are expensed as incurred. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the allocation of purchase consideration and to the fair values of assets acquired and liabilities assumed to the extent that additional information becomes available. After this period, any subsequent adjustments are recorded in the consolidated statements of operations and comprehensive loss. |
Variable Interest Entities | We enter into arrangements in which we originate loans, establish a SPE, and transfer loans to the SPE. We retain the servicing rights of those loans and hold additional interests in the SPE. We evaluate each such arrangement to determine whether we have a variable interest. If we determine that we have a variable interest in an SPE, we then determine whether the SPE is a VIE. If the SPE is a VIE, we assess whether we are the primary beneficiary of the VIE, such that we must consolidate the VIE on our consolidated balance sheets. To determine if we are the primary beneficiary, we identify the most significant activities and determine who has the power over those activities, and who absorbs the variability in the economics of the VIE. We periodically reassess our involvement with each VIE in which we have a variable interest. We monitor matters related to our ability to control economic performance, such as management of the SPE and its underlying loans, contractual changes in the services provided, the extent of our ownership, and the rights of third parties to terminate us as the VIE servicer. In addition, we monitor the financial performance of each VIE for indications that we may or may not have the right to absorb benefits or the obligation to absorb losses associated with variability in the financial performance of the VIE that could potentially be significant to that VIE, which we define as a variable interest of greater than 10%. |
Fair Value Measurements | Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a three-level fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available and to minimize the use of unobservable inputs when determining fair value. The three levels are defined as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date. • Level 2 — Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or observable inputs other than quoted prices. • Level 3 — Unobservable inputs for assets or liabilities for which there is little or no market data, which requires us to develop our own assumptions. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models, or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the asset or liability. A financial instrument’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Instruments are categorized in Level 3 of the fair value hierarchy based on the significance of unobservable factors in the overall fair value measurement. As a result, the related gains and losses for assets and liabilities within the Level 3 category presented in Note 15. Fair Value Measurements may include changes in fair value that are attributable to both observable and unobservable inputs. We utilize third-party valuation specialists to perform a valuation of these Level 2 and Level 3 financial instruments on a monthly basis with quarterly oversight by a Valuation Working Group established by the Company that comprises leaders across finance, capital markets and accounting. |
Transfers of Financial Assets | The transfer of an entire financial asset is accounted for as a sale if all of the following conditions are met: • the financial asset is isolated from the transferor and its consolidated affiliates as well as its creditors, even in bankruptcy or other receivership; • the transferee or beneficial interest holders have the right to pledge or exchange the transferred financial asset; and • the transferor, its consolidated affiliates and its agents do not maintain effective control over the transferred financial asset. Loan sales are aggregated in the financial statements due to the similarity of both the loans transferred and servicing arrangements. The portion of our income relating to ongoing servicing and the fair value of our servicing rights are dependent upon the performance of the sold loans. We measure the gain or loss on the sale of financial assets as the net assets received from the sale less the carrying amount of the loans sold. The net assets received from the sale represent the fair value of any assets obtained or liabilities incurred as part of the transaction, including but not limited to cash, servicing assets, retained securitization investments and recourse obligations. When securitizing loans, we employ a two-step transaction that includes the isolation of the underlying loans in a trust and the sale of beneficial interests in the trust to a bankruptcy-remote entity. Transfers of financial assets that do not qualify for sale accounting are reported as secured borrowings. Accordingly, the related assets remain on our consolidated balance sheets and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds received from these transfers are reported as liabilities, with related interest expense recognized over the life of the related secured borrowing. As a component of the loan sale agreements, we make certain representations to third parties that purchase our previously-held loans, some of which include GSE repurchase requirements and all of which are standard in nature and do not constrain our ability to recognize a sale for accounting purposes. Any significant estimated post-sale obligations or contingent obligations to the purchaser of the loans arising from these representations are accrued if probable and estimable. We establish a loan repurchase liability, which is based on historical experience and any current developments which would make it probable that we would buy back loans previously sold to third parties at the historical sales price. The loan repurchase liability is presented within accounts payable, accruals and other liabilities in the consolidated balance sheets, with the corresponding charges recorded within noninterest income—loan origination, sales, and securitizations |
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 primarily include 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 |
Loans | Loan Classification We classify loans as held for sale or held for investment based on management’s assessment of its intent and ability to hold the loans for the foreseeable future or until maturity, which may change over time. A loan that is initially designated as held for sale or held for investment may be reclassified when our intent for that loan changes. The accounting and measurement framework for loans differs depending on the loan classification and whether we elect the fair value option. The presentation within the consolidated statements of cash flows is based on management’s intent at origination. Cash flows related to loans that are originated with the intent to sell are included in cash flows from operating activities in the consolidated statements of cash flows. Cash flows related to loans that are originated with the intent to hold for investment are included in cash flows from investing activities in the consolidated statements of cash flows. Our loan portfolio primarily consists of: (i) personal loans, student loans and home loans, which are measured at fair value and held for sale or held for investment, and (ii) senior secured loans, credit cards, and commercial and consumer banking loans, which are measured at amortized cost and held for investment. 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 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. Therefore, these loans are carried at fair value on a recurring basis. During the year ended December 31, 2023, we transferred home loans out of Level 3 and into Level 2 due to an update to pricing sources utilized by third-party valuation specialists, as part of the integration of Wyndham. Other loans do not trade in an active market with readily observable prices and are classified as Level 3. We determine the fair value of our loans using a discounted cash flow methodology, while also considering market data as it becomes available. Direct fees, which primarily relate to personal and home loan originations, are recognized in earnings as earned and are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. Direct loan origination costs are recognized in earnings as incurred and are recorded within noninterest expense—cost of operations in the consolidated statements of operations and comprehensive loss. 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, sales, and securitizations in the consolidated statements of operations and comprehensive loss. We record cash flows related to loans held for sale within cash flows from operating activities in the consolidated statements of cash flows. Securitized loans are assets held by consolidated SPEs as collateral for bonds issued, for which fair value changes are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. Gains or losses recognized upon deconsolidation of a VIE are also recorded within noninterest income—loan origination, sales, and securitizations . We consider a loan to be delinquent when the borrower has not made the scheduled payment amount within one day after the scheduled payment date, provided the borrower is not in school or in deferment, forbearance or within an agreed-upon grace period. Loan deferment is a provision within student loan contracts that permits the borrower to defer payments while enrolled at least half time in school. During the deferment period, interest accrues on the loan balance and is capitalized to the loan when the loan enters repayment status, which begins when the student no longer qualifies for deferment. Forbearance applies to student loans, personal loans and home loans. A borrower in repayment may generally request forbearance for reasons including a FEMA-declared disaster, unemployment, economic hardship or general economic uncertainty. Forbearance typically cannot exceed a total of 12 months over the life of the loan. If forbearance is granted, interest continues to accrue during the forbearance period and is capitalized to the loan when the borrower resumes making payments. At the conclusion of a forbearance period, the contractual monthly payment is recalculated and is generally higher as a result. For personal loans and student loans, delinquent loans are charged off after 120 days of delinquency or on the date of confirmed loss. For home loans, delinquent loans are charged off after 180 days of delinquency or on the date of confirmed loss. For all loans, we stop accruing interest and reverse all accrued but unpaid interest on the date of charge-off. Additional information about our loans held for sale is included in Note 4. Loans , Note 7. Securitization and Variable Interest Entities and Note 15. Fair Value Measurements . Loans Measured at Amortized Cost For our senior secured and commercial and consumer banking loans, direct loan origination costs are deferred and amortized using the effective interest method over the contractual term of the loans within interest income—loans and securitizations in the consolidated statements of operations and comprehensive loss. As of December 31, 2023, the remaining balance of deferred costs was immaterial. We present accrued interest for loans measured at amortized cost within loans held for investment, at amortized cost in the consolidated balance sheets. The amortized cost of these loans is subject to our allowance for credit losses methodology described within “ Allowance for Credit Losses ” herein. We record cash flows related to loans held for investment within cash flows from investing activities in the consolidated statements of cash flows. Credit card receivables are reported at the amounts due from members, including accrued interest and fees, and unamortized net deferred loan origination fees and costs. Loan origination fees and direct loan origination costs are amortized on a straight-line basis over a 12-month period as adjustments to income through interest income—loans and securitizations in the consolidated statements of operations and comprehensive loss. Credit card balances are reported as delinquent when they become 30 or more days past due. Credit card balances are charged off after 180 days of delinquency or on the date of the confirmed loss, at which time we stop accruing interest and fees and reverse all accrued but unpaid interest and fees through interest income as of such date. When a credit card balance is charged off, we record a reduction to the allowance and the credit card balance. When recovery payments are received against charged off credit card balances, we record a direct reduction to the provision for credit losses. Credit card receivables associated with alleged or potential fraudulent transactions are charged off through noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. 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. For commercial loans, performance is monitored on an individual loan basis and delinquent loans are charged off when collectability of interest and principal on the loan is not reasonably assured. Senior secured loans are term loan arrangements secured by underlying loans owned by the debtor. Senior secured loans are reported as delinquent when they become 30 or more days past due, and are charged off after 120 days of delinquency or on the date of confirmed loss. |
Financial Guarantees | We entered into a credit default swap related to our student loans which meets the definition of a financial guarantee and is excluded from derivative accounting treatment. We apply the insurance contract claim method by deferring the full estimated amount of premiums paid and payable at inception. The deferred premium is estimated using a discounted cash flow model considering the expected performance of the reference portfolio and recorded within other assets and accounts payable, accruals and other liabilities in the consolidated balance sheets. Deferred premiums are amortized based on actual premiums due and recognized in noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. We recognize a receivable and related earnings when a loss event occurs, we have the right to submit a claim, and recovery is probable. |
Allowance for Credit Losses | We primarily evaluate expected credit losses under the current expected credit loss model for the following financial assets: (i) cash equivalents and restricted cash equivalents, (ii) accounts receivable from contracts with customers, inclusive of servicing related receivables, (iii) loans measured at amortized cost, and (iv) investments in AFS debt securities. Our approaches to measuring the allowance for credit losses on the applicable financial assets are as follows: Cash equivalents and restricted cash equivalents : Our cash equivalents and restricted cash equivalents are short-term in nature and of high credit quality; therefore, we determined that our exposure to credit losses over the life of these instruments was immaterial. Accounts receivable from contracts with customers : Accounts receivable from contracts with customers as of the balance sheet dates, all of which are short-term in nature, are recorded at their original invoice amounts reduced by any allowance for credit losses. We assess the risk of loss for each individual customer, even when the risk is remote. Certain of our historical accounts receivable balances did not have any write-offs. We use the aging method and historical loss rates as a basis for estimating the percentage of current and delinquent accounts receivable balances that will result in credit losses. We consider whether the conditions at the measurement date and reasonable and supportable forecasts about future conditions, such as customer creditworthiness, current economic conditions, customer location, expectations of near-term economic trends and changes in customer payment terms and collection trends, warrant an adjustment to our historical loss experience. Based on this analysis, we determined that our historical loss rates remained most indicative of our lifetime expected losses. We record the provision for credit losses on accounts receivable from contracts with customers within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. When we determine that a receivable is not collectible, we write off the uncollectible amount as a reduction to both the allowance and the gross asset balance. Recoveries are recorded when received and credited to the provision for credit losses. Any change in the assumptions used in analyzing a specific account receivable may result in an additional allowance for credit losses being recognized in the period in which the change occurs. See Note 5. Allowance for Credit Losses for a rollforward of the allowance for credit losses related to our accounts receivable. Senior secured loans : We evaluate the credit quality of our senior secured loan portfolio based on the fair value of underlying collateral, which are subject to the requirements of our loan underwriting process and risk models upon origination. This analysis is performed on a quarterly basis utilizing a third-party valuation specialist, whereby the fair value of underlying collateral is reassessed based on relevant information such as funded loan rates and historical loss experience, among other factors. An allowance for credit losses is required when there is an expected credit loss after considering the fair value of the collateral as well as any anticipated future changes in the underlying collateral. As of and for the year ended December 31, 2023, we determined that our expected exposure to credit losses was immaterial, and as such did not recognize an allowance for credit losses on senior secured loans. Credit cards : We segment pools of credit cards based on consumer credit score bands as measured using FICO scores, which are obtained at origination of the account and are refreshed monthly thereafter, and also by delinquency status, which may be adjusted using other risk-differentiating attributes to model charge-off probabilities and the average life over which expected credit losses may occur for the credit cards within each pool. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data. When necessary, we apply separate credit loss assumptions to assets that have deteriorated in credit quality such that they no longer share similar risk characteristics with other assets in the same FICO score band. We either estimate the allowance for credit losses on such non-performing assets individually based on individual risk characteristics or as part of a distinct pool of assets that shares similar risk characteristics. We reassess our credit card pools periodically to confirm that all loans within each pool continue to share similar risk characteristics. We establish an allowance within each pool of credit cards utilizing the risk model described above, which may then be adjusted for current conditions and reasonable and supportable forecasts of future conditions, including economic conditions. We apply the probability-of-default and loss-given-default assumptions to the drawn balance of credit cards within each pool to estimate the lifetime expected credit losses within each pool, which are then aggregated to determine the allowance for credit losses. We do not measure credit losses on the undrawn credit exposure, as such undrawn credit exposure is unconditionally cancellable by us. Additionally, management evaluates whether to include qualitative reserves to cover losses that are expected but may not be adequately represented in the quantitative methods or the economic assumptions. The qualitative reserves address possible limitations within the models, such as external conditions including regulatory requirements, emerging portfolio trends, the nature and size of the portfolio, portfolio concentrations, the volume and severity of past due accounts, or management risk actions. We record the provision for credit losses on credit cards within noninterest expense—provision for credit losses in the consolidated statements of operations and comprehensive loss. We elected to exclude interest on credit cards from the measurement of our allowance, as our policy allows for accrued interest to be reversed in a timely manner. Further, we elected the practical expedient to exclude the accrued interest component of our credit cards from the quantitative disclosures presented. See Note 5. Allowance for Credit Losses for a rollforward of the allowance for credit losses related to our credit cards. Commercial and consumer banking loans : We evaluate the credit quality of our commercial and consumer banking loan portfolio 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. The allowance for credit losses is determined at a portfolio level and estimated based on weighted average remaining maturity and annualized loss rate according to the loan’s regulatory loan type, risk rating classification and historical loss rates in the industry. This analysis is performed on an ongoing basis as new information is obtained. See Note 5. Allowance for Credit Losses for a rollforward of the allowance for credit losses related to our commercial and consumer banking loans. Investments in AFS debt securities : Credit-related impairment is recognized as an allowance for credit losses in the consolidated balance sheets with a corresponding adjustment to noninterest expense—provision for credit losses in the statements of operations and comprehensive loss. For certain securities that are guaranteed by the U.S. Treasury or government agencies, or sovereign entities of high credit quality, we concluded that there is no risk of credit-related impairment due to the nature of the counterparties and history of no credit losses. For other investments in AFS debt securities, factors considered in evaluating credit losses include: (i) adverse conditions related to the macroeconomic environment or the industry, geographic area or financial condition of the issuer, (ii) other credit indicators of the security, such as external credit ratings, and (iii) payment structure of the security. For the year ended December 31, 2023, we did not recognize an allowance for credit losses on impaired investments in AFS debt securities. |
Servicing Rights, Loan Origination and Sales Activities | Each time we enter into a servicing agreement, either in connection with transfers of our financial assets or in connection with a referral fulfillment arrangement in which we are a sub-servicer for financial assets that we do not legally own, we determine whether we should record a servicing asset or servicing liability. We elected the fair value option to measure our servicing rights subsequent to initial recognition. We measure the initial and subsequent fair value of our servicing rights using a discounted cash flow methodology, while also considering market data as it becomes available. The significant assumptions used in the valuation model include our contractual servicing fee, ancillary income, prepayment rate assumptions, default rate assumptions, a discount rate commensurate with the risk of the servicing asset or liability being valued, and an assumed market cost of servicing, which is based on active quotes from third-party servicers. The value of the servicing rights are dependent on the performance of the underlying loans. For servicing rights retained in connection with loan transfers that do not meet the requirements for sale accounting treatment, there is no recognition of a servicing asset or liability. Servicing rights in connection with transfers of financial assets are initially measured at fair value and recognized as a component of the gain or loss from sales of loans and the initial capitalization is reported within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. Servicing rights assumed from third parties for financial assets for which we are not the loan originator are initially measured at fair value and recognized within noninterest income—servicing in the consolidated statements of operations and comprehensive loss. Servicing rights are measured at fair value at each subsequent reporting date and changes in fair value are reported in earnings in the period in which they occur. Subsequent measurement changes for all servicing rights, including servicing fee payments and fair value changes, are included within noninterest income—servicing in the consolidated statements of operations and comprehensive loss. We elected the fair value option to measure our servicing rights to better align with the valuation of our transferred loans, which also tend to share a similar risk profile to the personal loan servicing we assume from third parties when we are not the loan originator. The loans are also impacted by similar factors, such as conditional prepayment rates and default rates. We consider the risk of the assets and the observability of inputs in determining the classes of servicing rights. We have three classes of servicing assets: personal loans, student loans and home loans. As part of our loan sale agreements, we may retain the rights to service sold loans. We calculate a gain or loss on the sale based on the sum of the proceeds from the sale and any servicing asset or liability recognized, less the carrying value of the loans sold. Our gain or loss calculation is also inclusive of repurchase liabilities recognized at the time of sale, and is recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. |
Investments in Debt Securities | The accounting and measurement framework for our investments in debt securities is determined based on the security classification. We do not hold investments in debt securities for trading purposes, nor do we have investments in debt securities that we have the intent and ability to hold to maturity. Therefore, we classify our investments in debt securities as available-for-sale. We record investments in AFS debt securities at fair value in our consolidated balance sheets, with unrealized gains and losses recorded, net of tax, as a component of AOCI. See Note 15. Fair Value Measurements for additional information on our fair value estimates for investments in AFS debt securities. The amortized cost basis of our investments in AFS debt securities reflects the security’s acquisition cost, adjusted for amortization of premium or accretion of discount, and collection of cash and charge-offs, as applicable. For purposes of determining gross realized gains and losses on AFS debt securities, the cost of securities sold is based on specific identification. We elected to present accrued interest for AFS debt securities within investment securities in the consolidated balance sheets. Purchase discounts, premiums, and other basis adjustments for investments in AFS debt securities are generally amortized into interest income over the contractual life of the security using the effective interest method. However, premiums on certain callable debt securities are amortized to the earliest call date. Amortization of premiums and discounts and other basis adjustments for investments in AFS debt securities, as well as interest income earned on the investments, are recognized within interest income—other , and realized gains and losses on investments in AFS debt securities are recognized within noninterest income—other in the consolidated statements of operations and comprehensive loss. An investment in AFS debt security is considered impaired if its fair value is less than its amortized cost. If we determine that we have the intent to sell the impaired investment in AFS debt security, or if it is more likely than not that we will be required to sell the impaired investment in AFS debt security before recovery of its amortized cost, we recognize the full impairment loss reflecting the difference between the amortized cost (net of any prior recognized allowance) and the fair value of the investment in AFS debt security within noninterest income—other in the consolidated statements of operations and comprehensive loss. If neither of the above conditions exists, we evaluate whether the impairment loss is attributable to credit-related or non-credit-related factors. Any impairment that is not credit-related is recognized within other comprehensive income (loss) , net of taxes. See the section “Allowance for Credit Losses” in this Note for the factors we consider in identifying credit-related impairment and the treatment of credit losses. |
Securitization Investments | In Company-sponsored securitization transactions that meet the applicable criteria to be accounted for as a sale, we retain certain residual interests and asset-backed bonds. We measure these investments at fair value on a recurring basis and report them within investment securities in the consolidated balance sheets. Gains and losses related to our securitization investments are reported within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. We determine the fair value of our securitization investments using a discounted cash flow methodology, while also considering market data as it becomes available. Our residual investments accrete interest income over the expected life using the effective yield method , which reflects a portion of the overall fair value adjustment recorded each period on our residual investments. On a quarterly basis, we reevaluate the cash flow estimates over the life of the residual investments to determine if a change to the accretable yield is required on a prospective basis. Additionally, we record interest income associated with asset-backed bonds over the term of the underlying bond using the effective interest method on unpaid bond amounts. Interest income on residual investments and asset-backed bonds is presented within interest income—loans and securitizations |
Investments in Equity Securities | Our investments in equity securities consist of investments for which fair values are not readily determinable, which we elect to measure using the alternative method of accounting, under which they are measured 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. Our investments in equity securities are presented within other assets in the consolidated balance sheets. Adjustments to the carrying values of our investments in equity securities, such as impairments and unrealized gains, are recognized within noninterest income—other |
Property, Equipment and Software | All property, equipment and software are initially recorded at cost, while repairs and maintenance costs are expensed as incurred. Computer hardware, furniture and fixtures, software, buildings and finance lease ROU assets are depreciated or amortized on a straight-line basis over the estimated useful life of each class of depreciable or amortizable assets (ranging from one |
Property, Equipment and Software | All property, equipment and software are initially recorded at cost, while repairs and maintenance costs are expensed as incurred. Computer hardware, furniture and fixtures, software, buildings and finance lease ROU assets are depreciated or amortized on a straight-line basis over the estimated useful life of each class of depreciable or amortizable assets (ranging from one |
Goodwill and Intangible Assets | Goodwill represents the fair value of an acquired business in excess of the fair value of the identified net assets acquired. Goodwill is tested for impairment at the reporting unit level annually or whenever indicators of impairment exist. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. We may assess goodwill for impairment initially using a qualitative approach, referred to as “step zero”, to determine whether conditions exist to indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If management concludes, based on its assessment of relevant events, facts and circumstances, that it is more likely than not that a reporting unit’s carrying value is greater than its fair value, then a quantitative analysis will be performed to determine if there is any impairment. We may alternatively elect to initially perform a quantitative assessment and bypass the qualitative assessment. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Therefore, if the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. Our reporting units for our goodwill impairment analysis represent components of our business at one level below our operating segments. Our annual impairment testing date is October 1. Definite-lived intangible assets are amortized on a straight-line basis over their useful lives and reviewed for impairment annually and whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Intangible assets include capitalized costs incurred in the development and enhancement of our software products to be sold, leased or marketed. These costs, consisting primarily of salaries and compensation costs (inclusive of share-based compensation) for employees, are expensed as incurred until technological feasibility has been established, after which the costs are capitalized until the product is available for general release to customers. |
Leases | We determine if an arrangement is or contains a lease at inception of the contract. A contract is or contains a lease if the contract conveys the right to control the use of identified property or equipment for a period of time in exchange for consideration. For our current office and non-office classes of operating leases, we elected the practical expedient to not separate non-lease components from lease components and to, instead, account for each separate lease component and the non- lease components associated with that lease component as a single lease component. For our current classes of finance leases, we did not elect to apply this practical expedient and, instead, separately identify and measure the non-lease components of the contracts. As an accounting policy election, we apply the short-term lease exemption practical expedient to any lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that we are reasonably certain to exercise. Operating leases are presented within operating lease right-of-use assets and operating lease liabilities in the consolidated balance sheets. Finance lease ROU assets are presented within property, equipment and software and finance lease liabilities are presented within accounts payable, accruals and other liabilities in the consolidated balance sheets. Operating and finance lease ROU assets represent our right to use an underlying asset for the lease term and operating and finance lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit borrowing rate, we use our incremental borrowing rate based on the information available at commencement date or modification date, as appropriate, in determining the present value of lease payments. The operating lease ROU assets are increased by any prepaid lease payments and are reduced by any unamortized lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Base rent is typically subject to rent escalations on each annual anniversary from the lease commencement dates. Lease expense for lease payments, including any step rent provisions specified in the lease agreements, is recognized on a straight-line basis over the lease term and is allocated among the components of noninterest expense in the consolidated statements of operations and comprehensive loss. The finance lease ROU assets are depreciated on a straight-line basis over the estimated useful life of seven years. Interest expense on finance leases is recognized for the difference between the present value of the lease liabilities and the scheduled lease payments within interest expense—other in the consolidated statements of operations and comprehensive loss. When a lease agreement is modified, we determine if the modification grants us the right to use an additional asset that is not included in the original lease contract and if the lease payments increase commensurate with the standalone price for the additional ROU asset. If both conditions are met, we account for the agreement as two separate contracts: (i) the original, unmodified contract and (ii) a separate contract for the additional ROU asset. If both conditions are not met, the modification is not evaluated as a separate contract. Instead, based on the nature of the modification, we: (i) reassess the lease classification on the modification date under the modified terms, and (ii) use the modified lease payments and discount rate to remeasure the lease liability and recognize any difference between the new lease liability and the old lease liability as an adjustment to the ROU asset. |
Derivative Financial Instruments and Capped Call Transactions | We enter into derivative contracts to manage future loan sale execution risk. We did not elect hedge accounting, as management’s hedging intentions are to economically hedge the risk of unfavorable changes in the fair values of our personal loans, student loans and home loans. Our derivative instruments used to manage future loan sale execution risk include interest rate swaps, interest rate caps and home loan pipeline hedges. We also have IRLCs, interest rate swaps and interest rate caps that were not related to future loan sale execution risk. Changes in derivative instrument fair values are recognized in earnings as they occur. Depending on the measurement date position, derivative financial instruments are presented within other assets or accounts payable, accruals and other liabilities in the consolidated balance sheets. Our derivative instruments are reported within cash flows from operating activities in the consolidated statements of cash flows. Certain derivative instruments are subject to enforceable master netting arrangements. Accordingly, we present our net asset or liability position by counterparty in the consolidated balance sheets. Additionally, since our cash collateral balances do not approximate the fair value of the derivative position, we do not offset our right to reclaim cash collateral or obligation to return cash collateral against recognized derivative assets or liabilities. We entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions (the “Capped Call Counterparties”). The Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the number of shares of our common stock that initially underlie the convertible notes. The Capped Call Transactions are net purchased call options on our own common stock. The Capped Call Transactions are separate transactions entered into by the Company with each of the Capped Call Counterparties, are not part of the terms of the convertible notes, and do not affect any holder’s rights under the convertible notes. Holders of the convertible notes do not have any rights with respect to the Capped Call Transactions. As the Capped Call Transactions are legally detachable and separately exercisable from the convertible notes, they were evaluated as freestanding instruments. We concluded that the Capped Call Transactions meet the scope exceptions for derivative instruments, and as such, the Capped Call Transactions meet the criteria for classification in equity and are included as a reduction to additional paid-in capital . |
Residual Interests Classified as Debt, Borrowing and Financing Costs | Within consolidated securitizations, the residual interests held by third parties are presented as residual interests classified as debt in the consolidated balance sheets. We measure residual interests classified as debt at fair value on a recurring basis. We record subsequent measurement changes in fair value in the period in which the change occurs within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. We determine the fair value of residual interests classified as debt using a discounted cash flow methodology, while also considering market data as it becomes available. We recognize interest expense related to residual interests classified as debt over the expected life using the effective yield method, which reflects a portion of the overall fair value adjustment recorded each period on our residual interests classified as debt. Interest expense related to residual interests classified as debt is presented within interest expense—securitizations and warehouses in the consolidated statements of operations and comprehensive loss. On a quarterly basis, we reevaluate the cash flow estimates to determine if a change to the accretable yield is required on a prospective basis. We borrow from various financial institutions to finance our lending activities. Direct costs incurred in connection with financing, such as banker fees, origination fees and legal fees, are classified as deferred debt issuance costs. We capitalize these costs and report the amounts as a direct deduction from the carrying amount of the debt balance. Any difference between the stated principal amount of debt and the amount of cash proceeds received, net of debt issuance costs, is presented as a discount or premium. The capitalized debt issuance costs and the original issue discount/premium are amortized into interest expense over the expected life of the related financing agreements using the straight-line method for revolving facilities and the effective interest method for securitization debt and our senior convertible notes, as defined and further discussed below. Remaining unamortized fees are expensed immediately upon early extinguishment of the debt. In a debt modification for revolving debt, the initial issuance costs and any additional fees incurred as a result of the modification are deferred over the term of the new agreement, if the borrowing capacity of the revolving facility is increased. In the case that a modification results in a decrease in our borrowing capacity, any fees paid to the creditor and any third-party costs incurred are considered to be associated with the new arrangement and are, therefore, deferred and amortized over the term of the new arrangement. Unamortized deferred costs relating to the old arrangement at the time of the modification are expensed immediately in proportion to the decrease in borrowing capacity of the old arrangement. Any remaining unamortized deferred costs relating to the old arrangement are deferred and amortized over the term of the new arrangement. We elected the fair value option to measure certain securitization debt, with the intent to mitigate the accounting divergence between debt liabilities measured at historical cost and the corresponding loans securing these financings, which are risk-managed on a fair value basis. For securitization debt carried at fair value on a recurring basis, 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, sales, and securitizations in the consolidated statements of operations and comprehensive loss. We determined the fair value of the applicable securitization debt using a discounted cash flow methodology, while also considering market data as it becomes available. The key inputs to the calculation include the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. Convertible Senior Notes In October 2021, we issued $1.2 billion aggregate principal amount of convertible senior notes due 2026 (the “convertible notes”). The convertible notes will mature on October 15, 2026, unless earlier repurchased, redeemed or converted. We will settle conversions by paying or delivering, at our election, cash, shares of our common stock or a combination of cash and shares of our common stock, based on the applicable conversion rate(s). The convertible notes will also be redeemable, in whole or in part, at our option at any time, and from time to time, on or after October 15, 2024 through the 30th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the convertible notes to be redeemed, plus accrued interest, if any, thereon to, but excluding, the redemption date, but only if certain liquidity conditions described in the indenture are satisfied and certain conditions are met with respect to the last reported sale price per share of our common stock prior to conversion. In December 2023, we entered into repurchase agreements to repurchase $88.0 million aggregate principal amount of the convertible notes. See Note 12. Debt for more detailed disclosure of the term and features of the convertible notes. We elected to evaluate each embedded feature of the arrangement individually. We concluded that each of the conversion rights, optional redemption rights, fundamental change make-whole provision and repurchase rights did not require bifurcation as derivative instruments, which we reevaluate each reporting period. The additional interest and special interest that accrue on the notes in the event of our failure to comply with certain registration or reporting requirements are required to be bifurcated from the host contract, as the reporting requirement triggering event is not clearly and closely related to the host convertible debt contract, and therefore we measure the contingent interest feature at fair value each reporting period. The value was determined to be immaterial; therefore, we accounted for the convertible notes wholly as debt, which was recognized on the settlement date. Accordingly, we allocated all debt issuance costs to the debt instrument on the basis of materiality. In connection with the pricing of the convertible notes, we entered into privately negotiated capped call transactions with certain financial institutions, as defined and further discussed below. |
Safeguarding Asset and Liability | Through our SoFi Invest product (via our wholly-owned subsidiary, SoFi Digital Assets, LLC, a licensed money transmitter), our members were able to invest in digital assets. In the fourth quarter of 2023, we transferred the crypto services provided by SoFi Digital Assets, LLC, and began closing existing digital assets accounts. This process was completed in the first quarter of 2024. Certain accounts were eligible for transfer to a third party digital asset service provider who assumed responsibility for the transferred accounts on a go-forward basis, including the arrangement of custodial services for the transferred digital assets. We have no further ongoing responsibilities for the transferred digital assets subsequent to the executed transfer which took place in December 2023, and derecognized the corresponding digital assets safeguarding liability and safeguarding asset as of the date of the transfer. For those digital assets that were not eligible to be transferred, we engage third parties to provide custodial services for our digital assets offering, which include holding the cryptographic key information and working to protect the digital assets from loss or theft. The third-party custodians hold digital assets as custodial assets in an account in SoFi’s name for the benefit of our members. We maintain the internal recordkeeping of our members’ digital assets, including the amount and type of digital assets owned by each of our members in the custodial accounts. As of December 31, 2023, we utilized one third-party custodian. In accordance with Staff Accounting Bulletin No. 121 (“SAB 121”), we recognize a digital assets safeguarding liability within accounts payable, accruals and other liabilities in the consolidated balance sheets reflecting our obligation to safeguard the digital assets held by third-party custodians for the benefit of our members. We also recognize a corresponding safeguarding asset within other assets |
Redeemable Preferred Stock | Series 1 Redeemable Preferred Stock (as defined in Note 13. Equity ) is classified in temporary equity, as it is not fully controlled by SoFi. See Note 13. Equity for additional information. |
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 income (loss) in our 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 consolidated statements of operations and comprehensive loss. Due to the highly inflationary economic environment in Argentina, we use the United States Dollar as the functional currency of our Argentinian operations. Our activities in Argentina are related to our Technology Platform segment and commenced in the first quarter of 2022 with the Technisys Merger. |
Interest Income | We record interest income associated with loans measured at fair value over the term of the underlying loans using the effective interest method on unpaid loan principal amounts, which is presented within interest income—loans and securitizations in the consolidated statements of operations and comprehensive loss. We also record accrued interest income associated with loans measured at amortized cost within interest income—loans and securitizations. We stop accruing interest and reverse all accrued but unpaid interest at the time a loan charges off. Loans are returned to accrual status if the loans are brought to nondelinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in management’s judgment, will continue to make scheduled periodic principal and interest payments. |
Loan Commitments | We offer a program whereby applicants can lock in an interest rate on an in-school loan to be funded at a later time. Applicants can exit the loan origination process up until the loan funding date. SoFi is obligated to fund the loan at the committed terms on the disbursement date if the borrower does not cancel prior to the loan funding date. The student loan commitments meet the scope exception for issuers of commitments to originate non-mortgage loans. As the writer of the commitments, we elected the fair value option to measure our unfunded student loan commitments to align with the measurement methodology of our originated student loans. As such, our student loan commitments are carried at fair value on a recurring basis. Depending on the measurement date position, student loan commitments are presented within other assets or accounts payable, accruals and other liabilities in the consolidated balance sheets. 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, sales, and securitizations in the consolidated statements of operations and comprehensive loss. Loan commitments also include IRLCs, whereby we commit to interest rate terms prior to completing the origination process for home loans. IRLCs are derivative instruments that are measured at fair value on a recurring basis. Changes in fair value are recognized within noninterest income—loan origination, sales, and securitizations |
Revenue Recognition | 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 primary revenue streams for the periods presented include the following: • Technology Products and Solutions: We earn fees for providing an integrated platform as a service for financial and non-financial institutions. • Referrals: We earn specified referral fees in connection with referral activities we facilitate through our platform, such as referrals to third-party partners that offer services to end users who do not use one of our product offerings and referrals of pre-qualified borrowers to a third-party partner who separately contracts with a loan originator. • Interchange: We earn interchange fees from debit and credit cardholder transactions conducted through payment networks. • Brokerage : We earn fees in connection with facilitating investment-related transactions through our platform, such as brokerage transactions, share lending and exchange conversion. 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. 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 provided over the contract term. These implementation fees are recognized ratably over the contract life. Commencing in March 2022 with the Technisys Merger, we earn subscription and service fees for providing software licenses and associated services, including implementation and maintenance. 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. We recognize revenue related to software licenses at a point in time upon delivery of the license and the close of the user-acceptance testing period. When implementation services are distinct, we recognize revenue over time during the implementation period. We recognize maintenance services ratably over the contractual maintenance term. If a fixed upfront payment provides a material right to the customer, we recognize revenue associated with the material right over the period of benefit associated with the right to subscribe or renew a subscription, which is typically the product life. We allocate fees charged for software and related services to our performance obligations on the basis of the relative standalone selling price. The standalone selling prices either represent the prices at which we separately sell each license or service or are estimated using available information, such as market conditions and internal pricing policies. The standalone selling price of the software license and maintenance are determined based on the complexity and size of the license. Payments to customers : We may provide incentives to our technology platform customers, which may be payable up front or applied to future or past technology products and solutions fees. Evaluating whether such incentives are payments to a customer requires judgment. When we determine that an incentive is consideration payable to a customer, the incentive is recorded as a reduction of revenue. Incentives that represent consideration payable to a customer may also contain variable consideration. Therefore, such incentives are constraints on the revenue expected to be realized. Upfront customer incentives are recorded as prepaid assets and presented within other assets in the consolidated balance sheets, and are applied against revenue in the period such incentives are earned by the customer. Any incentive in excess of cumulative revenue is expensed as a contract cost. Referrals We earn specified referral fees in connection with certain referral activities we facilitate through our platform. In one type of referral arrangement, we refer end users through our platform to third-party enterprise partners. Our referral fee is calculated as either a fixed price per successful referral or a percentage of the transaction volume between the enterprise partners and referred consumers. In another type of referral arrangement, we earn referral fulfillment fees for providing pre-qualified borrower referrals to a third-party partner who separately contracts with a loan originator. Our referral fees are based on the referred loan amount, subject to a referral fulfillment fee penalty if a loan is determined to be ineligible and becomes a charged-off loan as defined in the contract. We recognize revenue for each originated loan, less the estimated referral fulfillment fee penalty. The estimated referral fulfillment fee penalty was immaterial as of December 31, 2023 and 2022. Interchange We earn interchange fees from debit and credit cardholder transactions conducted through payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange is presented net of cardholder rewards associated with card transactions. Brokerage We earn fees in connection with facilitating investment-related transactions through our platform, which we refer to as brokerage revenue. Our brokerage revenue performance obligation is generally completely satisfied upon the completion of an investment-related transaction. In general, we act as the agent in these arrangements as we do not oversee the execution of the transactions and ultimately lack the requisite control. |
Advertising, Sales and Marketing | Advertising production costs and advertising communication costs, as well as amounts paid to various affiliates to market our products, are included within noninterest expense—sales and marketing in the consolidated statements of operations and comprehensive loss. Advertising costs are expensed either as incurred or when the advertising takes place, depending on the nature of the advertising activity. For the years ended December 31, 2023, 2022 and 2021, advertising totaled $284,176, $256,125 and $183,106, respectively. Expenses incurred by us related to member acquisition, including brand development, business development and direct member marketing expenses, are also presented within noninterest expense—sales and marketing |
Technology and Product Development | Expenses incurred by us related to technology, product design and implementation, which includes compensation and benefits, are classified as noninterest expense—technology and product development in the consolidated statements of operations and comprehensive loss. |
Loss Contingencies | Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded in accounts payable, accruals and other liabilities in the consolidated balance sheets. Such liabilities and associated expenses are recorded when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Such estimates are based on the best information available at the time. As additional information becomes available, we reassess the potential liability and record an estimate in the period in which the adjustment is probable and an amount or range can be reasonably estimated. Due to the inherent uncertainties of loss contingencies, estimates may be different from the actual outcomes. With respect to legal proceedings, we recognize legal fees as they are incurred within noninterest expense—general and administrative |
Restructuring | During the year ended December 31, 2023, we recognized restructuring charges of $12,749 within the following categories of expenses within noninterest expense : (i) technology and product development , (ii) sales and marketing , (iii) cost of operations , and (iv) general and administrative in the consolidated statements of operations and comprehensive loss associated with a reduction in headcount in the Technology Platform segment in the first quarter of 2023, as well as expenses in the fourth quarter of 2023 related to a reduction in headcount across the Financial Services, Lending and corporate functions, which primarily included employee-related wages, benefits and severance. |
Compensation and Benefits | Total compensation and benefits, inclusive of share-based compensation expense, was $894,720, $830,298 and $608,505 for the years ended December 31, 2023, 2022 and 2021, respectively. Compensation and benefits expenses are presented within the following categories of expenses within noninterest expense : (i) technology and product development , (ii) sales and marketing , (iii) cost of operations , and (iv) general and administrative in the consolidated statements of operations and comprehensive loss. |
Stock-Based Compensation | Share-based compensation made to employees and non-employees, including stock options, RSUs and PSUs, is measured based on the grant date fair value of the awards and is recognized as compensation expense typically on a straight-line basis over the period during which the share-based award holder is required to perform services in exchange for the award (the vesting period) for stock options and RSUs and on an accelerated attribution basis for each vesting tranche over the respective derived service period for PSUs. Share-based compensation expense is allocated among the following categories of expenses within noninterest expense : (i) technology and product development , (ii) sales and marketing , (iii) cost of operations , and (iv) general and administrative |
Income Taxes | We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. In assessing the realizability of deferred tax assets, management reviews all available positive and negative evidence. Valuation allowances are recorded to reduce deferred tax assets to the amount we believe is more likely than not to be realized. The tax effects from an uncertain tax position can be recognized in the financial statements only if the tax position would more likely than not be upheld on examination by the taxing authorities based on the merits of the tax position. Management is required to analyze all open tax years, as defined by the statute of limitations, for all jurisdictions. We accrue tax penalties and interest, if any, as incurred and recognize them within income tax (expense) benefit |
Related Parties | We define related parties as members of our Board of Directors, entity affiliates, executive officers and principal owners of our outstanding stock and members of their immediate families. Related parties also include any other person or entity with significant influence over our management or operations. |
Recently Adopted Accounting Standards and Recent Accounting Standards Issued, But Not Yet Adopted | Recently Adopted Accounting Standards Troubled Debt Restructurings and Vintage Disclosures 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 should be applied prospectively; however, for the TDR provisions, an entity has the option to apply a modified retrospective transition method. We adopted the standard effective January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements. Recent Accounting Standards Issued, But Not Yet Adopted Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures . The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The standard should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of this amendment on our consolidated financial statements. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740) — Improvements to Income Tax Disclosures. The ASU improves income tax disclosures primarily related to enhancements of the rate reconciliation and income taxes paid information. The standard is effective for annual periods beginning after December 15, 2024. The standard should be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the impact of this amendment on our consolidated financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Consideration | The following table presents the components of the total purchase consideration to acquire Technisys as of December 31, 2022: Fair value of common stock issued (1) $ 873,377 Amounts payable to settle vested employee performance awards 37,297 Fair value of awards assumed (2) 2,855 Settlement of pre-combination transactions between acquirer and acquiree 235 Total purchase consideration $ 913,764 ___________________ (1) Reflects the shares of SoFi common stock issued in the acquisition of 81,700,318, multiplied by the closing stock price of SoFi common stock on the closing date of the Technisys Merger. Additionally, these shares are inclusive of 6,305,595 shares that were held in escrow. (2) |
Schedule of Pro Forma Information | The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations as if the business combination had occurred on January 1, 2020: Year Ended December 31, 2022 2021 Total net revenue $ 1,584,439 $ 1,055,219 Net loss (311,512) (512,785) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
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, as well as a reconciliation of total revenue from contracts with customers to total noninterest income . Revenue from contracts with customers is presented within noninterest income—technology products and solutions and noninterest income—other in the consolidated statements of operations and comprehensive loss. There were no revenues from contracts with customers attributable to our Lending segment for any of the years presented. Year Ended December 31, 2023 2022 2021 Financial Services Referrals $ 38,443 $ 36,052 $ 15,750 Interchange 35,247 17,391 10,642 Brokerage 21,127 15,446 22,733 Other (1) 2,647 2,245 5,541 Total financial services $ 97,464 $ 71,134 $ 54,666 Technology Platform (2) Technology services 319,845 299,379 191,847 Other (1) 4,145 6,583 1,205 Total technology platform 323,990 305,962 193,052 Total revenue from contracts with customers 421,454 377,096 247,718 Other Sources of Revenue Loan origination, sales, and securitizations 371,812 565,372 482,764 Servicing 37,328 43,547 (2,281) Other 30,455 3,424 4,427 Total other sources of revenue $ 439,595 $ 612,343 $ 484,910 Total noninterest income $ 861,049 $ 989,439 $ 732,628 _____________________ (1) Financial Services includes revenues from enterprise services and equity capital markets services. Technology Platform includes revenues from software licenses and associated services, and payment network fees for serving as a transaction card program manager for enterprise customers that are the program marketers for separate card programs. (2) Related to these technology products and solutions arrangements, we had deferred revenue of $5,718 and $10,028 as of December 31, 2023 and 2022, respectively, which are presented within accounts payable, accruals and other liabilities in the consolidated balance sheets. During the years ended December 31, 2023, 2022 and 2021, we recognized revenue of $8,327, $7,773 and $685, respectively, associated with deferred revenue within noninterest income—technology products and solutions |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: December 31, 2023 2022 Loans held for sale Personal loans (1) $ 15,330,573 $ 8,610,434 Student loans (2) — 4,877,177 Home loans 66,198 69,463 Total loans held for sale, at fair value 15,396,771 13,557,074 Loans held for investment (3) Student loans (4) 6,725,484 — Total loans held for investment, at fair value 6,725,484 — Senior secured loans 446,463 — Credit card 272,628 209,164 Commercial and consumer banking: Commercial real estate 106,326 88,652 Commercial and industrial 6,075 7,179 Residential real estate and other consumer 4,667 2,962 Total commercial and consumer banking 117,068 98,793 Total loans held for investment, at amortized cost (3) 836,159 307,957 Total loans held for investment 7,561,643 307,957 Total loans $ 22,958,414 $ 13,865,031 _____________________ (1) Includes $502,757 and $663,004 of personal loans in consolidated VIEs as of December 31, 2023 and 2022, respectively. (2) Includes $268,697 of student loans in consolidated VIEs as of December 31, 2022. (3) See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 5. Allowance for Credit Losses for additional information on our loans at amortized cost as it pertains to the allowance for credit losses. (4) As of December 31, 2023, includes $2,459,103 of student loans covered by financial guarantees, and $221,461 of student loans in consolidated VIEs. The following table summarizes the aggregate fair value of our loans for which we elected the fair value option. See Note 15. Fair Value Measurements for the assumptions used in our fair value model. Personal Loans Student Loans Home Loans Total December 31, 2023 Unpaid principal $ 14,498,629 $ 6,445,586 $ 67,406 $ 21,011,621 Accumulated interest 114,541 34,357 92 148,990 Cumulative fair value adjustments 717,403 245,541 (1,300) 961,644 Total fair value of loans (1) $ 15,330,573 $ 6,725,484 $ 66,198 $ 22,122,255 December 31, 2022 Unpaid principal $ 8,283,400 $ 4,794,517 $ 77,705 $ 13,155,622 Accumulated interest 55,673 19,433 151 75,257 Cumulative fair value adjustments 271,361 63,227 (8,393) 326,195 Total fair value of loans (1) $ 8,610,434 $ 4,877,177 $ 69,463 $ 13,557,074 _____________________ (1) Each component of the fair value of loans is impacted by charge-offs during the period. Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due. The following table summarizes the aggregate fair value of loans 90 days or more delinquent. 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. Personal Loans Student Loans Home Loans Total December 31, 2023 Unpaid principal balance $ 81,591 $ 8,446 $ 495 $ 90,532 Accumulated interest 4,023 187 6 4,216 Cumulative fair value adjustments (1) (70,191) (5,021) (248) (75,460) Fair value of loans 90 days or more delinquent $ 15,423 $ 3,612 $ 253 $ 19,288 December 31, 2022 Unpaid principal balance $ 27,989 $ 6,435 $ — $ 34,424 Accumulated interest 1,207 304 — 1,511 Cumulative fair value adjustments (1) (25,022) (3,332) — (28,354) Fair value of loans 90 days or more delinquent $ 4,174 $ 3,407 $ — $ 7,581 __________________ (1) Our fair value assumption for annual default rate incorporates fair value markdowns on loans beginning when they are 10 days or more delinquent, with additional markdowns at 30, 60 and 90 days past due. |
Schedule of Loan Securitization Transfers and Whole Loan Sales | The following table summarizes our personal loan and student loan securitization transfers qualifying for sale accounting treatment. There were no loan securitization transfers qualifying for sale accounting treatment during the year ended December 31, 2022. Year Ended December 31, 2023 2021 Personal loans Fair value of consideration received: Cash $ 359,927 $ 1,050,062 Securitization investments 18,985 55,491 Servicing assets recognized 15,975 6,003 Repurchase liabilities recognized (113) — Total consideration 394,774 1,111,556 Aggregate unpaid principal balance and accrued interest of loans sold 375,770 1,054,171 Gain from loan sales $ 19,004 $ 57,385 Student loans Fair value of consideration received: Cash $ — $ 1,187,714 Securitization investments — 62,783 Servicing assets recognized — 36,948 Total consideration — 1,287,445 Aggregate unpaid principal balance and accrued interest of loans sold — 1,227,379 Gain from loan sales $ — $ 60,066 The following table summarizes our whole loan sales: Year Ended December 31, 2023 2022 2021 Personal loans Fair value of consideration received: Cash $ 567,904 $ 3,016,740 $ 3,373,655 Servicing assets recognized 30,168 21,925 21,811 Repurchase liabilities recognized (2,069) (7,351) (8,168) Total consideration received 596,003 3,031,314 3,387,298 Aggregate unpaid principal balance and accrued interest of loans sold 567,003 2,924,567 3,253,645 Realized gain $ 29,000 $ 106,747 $ 133,653 Student loans Fair value of consideration received: Cash $ 98,624 $ 883,859 $ 1,676,892 Servicing assets recognized 2,792 9,275 15,526 Repurchase liabilities recognized (16) (134) (300) Total consideration 101,400 893,000 1,692,118 Aggregate unpaid principal balance and accrued interest of loans sold 99,916 881,922 1,635,280 Realized gain $ 1,484 $ 11,078 $ 56,838 Home loans Fair value of consideration received: Cash $ 1,022,600 $ 1,057,596 $ 2,989,813 Servicing assets recognized 10,184 13,926 31,294 Repurchase liabilities recognized (1,765) (1,158) (3,288) Total consideration 1,031,019 1,070,364 3,017,819 Aggregate unpaid principal balance and accrued interest of loans sold 1,029,623 1,095,882 2,935,343 Realized gain (loss) $ 1,396 $ (25,518) $ 82,476 |
Schedule of Unpaid Principal Balances of Transferred Loans and Cash Flows Received | The following table presents information about the unpaid principal balances of loans originated by us and subsequently transferred, but with which we have continuing involvement: Personal Loans Student Loans Home Loans Total December 31, 2023 Loans in delinquency (30+ days past due) $ 52,813 $ 60,989 $ 24,193 $ 137,995 Total loans in delinquency 90,582 137,243 24,193 252,018 Total transferred loans serviced (1) 2,223,785 6,148,800 5,592,793 13,965,378 December 31, 2022 Loans in delinquency (30+ days past due) $ 64,654 $ 46,986 $ 16,510 $ 128,150 Total loans in delinquency 108,991 115,818 16,510 241,319 Total transferred loans serviced (1) 2,995,601 7,586,031 5,134,306 15,715,938 _____________________ (1) Total transferred loans serviced includes loans in delinquency, as well as loans in repayment, loans in-school/grace period/deferment (related to student loans), and loans in forbearance. The vast majority of total transferred loans serviced represent loans in repayment as of the dates indicated. The following table presents additional information about the servicing cash flows received and net charge-offs related to loans originated by us and subsequently transferred, but with which we have a continuing involvement: Year Ended December 31, 2023 2022 2021 Personal loans Servicing fees collected from transferred loans $ 20,577 $ 33,051 $ 34,421 Charge-offs, net of recoveries, of transferred loans 167,643 93,095 102,217 Student loans Servicing fees collected from transferred loans 27,401 35,203 46,657 Charge-offs, net of recoveries, of transferred loans 41,642 34,136 24,675 Home loans Servicing fees collected from transferred loans 14,530 12,893 8,749 Total Servicing fees collected from transferred loans $ 62,508 $ 81,147 $ 89,827 Charge-offs, net of recoveries, of transferred loans 209,285 127,231 126,892 |
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: Delinquent Loans Current 30–59 Days 60–89 Days ≥ 90 Days (1) Total Delinquent Loans Total Loans (2) December 31, 2023 Senior secured loans $ 445,733 $ — $ — $ — $ — $ 445,733 Credit card 297,612 5,451 4,829 11,802 22,082 319,694 Commercial and consumer banking: Commercial real estate 107,757 — — — — 107,757 Commercial and industrial 6,108 1 — 439 440 6,548 Residential real estate and other consumer (3) 4,658 — — — — 4,658 Total commercial and consumer banking 118,523 1 — 439 440 118,963 Total loans $ 861,868 $ 5,452 $ 4,829 $ 12,241 $ 22,522 $ 884,390 December 31, 2022 Credit card $ 225,165 $ 4,670 $ 3,626 $ 10,498 $ 18,794 $ 243,959 Commercial and consumer banking: Commercial real estate 89,544 — — — — 89,544 Commercial and industrial 7,636 — 1 — 1 7,637 Residential real estate and other consumer (3) 2,966 — — — — 2,966 Total commercial and consumer banking 100,146 — 1 — 1 100,147 Total loans $ 325,311 $ 4,670 $ 3,627 $ 10,498 $ 18,795 $ 344,106 _____________________ (1) All of the credit cards ≥ 90 days past due continued to accrue interest. As of the dates indicated, there were no credit cards on nonaccrual status. As of the dates indicated, commercial and consumer banking loans on nonaccrual status were immaterial. (2) For credit card, the balance is presented before allowance for credit losses of $52,385 and $39,110 as of December 31, 2023 and December 31, 2022, respectively, and accrued interest of $5,288 and $4,315, respectively. For senior secured loans, the balance is presented before accrued interest of $730 as of December 31, 2023. For commercial and consumer banking, the balance is presented before allowance for credit losses of $2,310 and $1,678, as of December 31, 2023 and December 31, 2022, respectively, and accrued interest of $415 and $324, respectively. (3) Includes residential real estate loans originated by Golden Pacific for which we did not elect the fair value option. |
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) based on FICO scores, which are obtained at origination of the account and are refreshed monthly thereafter. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data. December 31, FICO 2023 2022 ≥ 800 $ 29,269 $ 14,421 780 – 799 19,350 11,327 760 – 779 20,740 12,179 740 – 759 23,361 14,501 720 – 739 28,621 19,343 700 – 719 35,528 26,239 680 – 699 38,289 31,543 660 – 679 35,443 31,958 640 – 659 25,836 25,959 620 – 639 15,569 15,566 600 – 619 10,063 8,968 ≤ 599 37,625 31,955 Total credit card $ 319,694 $ 243,959 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: Term Loans by Origination Year December 31, 2023 2023 2022 2021 2020 2019 Prior Total Term Loans Revolving Loans Commercial real estate Pass $ 23,200 $ 29,761 $ 5,636 $ 4,550 $ 9,332 $ 17,316 $ 89,795 $ 186 Watch 1,234 8,691 1,648 — 215 2,749 14,537 — Special mention — — — — — 1,703 1,703 — Substandard — — — — — 1,536 1,536 — Total commercial real estate $ 24,434 $ 38,452 $ 7,284 $ 4,550 $ 9,547 $ 23,304 $ 107,571 $ 186 Commercial and industrial Pass $ 54 $ — $ — $ 63 $ 96 $ 4,941 $ 5,154 $ 299 Watch 46 — — — 16 3 65 — Substandard — — — — — 1,030 1,030 — Total commercial and industrial $ 100 $ — $ — $ 63 $ 112 $ 5,974 $ 6,249 $ 299 Residential real estate and other consumer Pass $ 1,845 $ — $ — $ — $ — $ 2,585 $ 4,430 $ 188 Watch — — — — — 40 40 — Total residential real estate and other consumer $ 1,845 $ — $ — $ — $ — $ 2,625 $ 4,470 $ 188 Total commercial and consumer banking $ 26,379 $ 38,452 $ 7,284 $ 4,613 $ 9,659 $ 31,903 $ 118,290 $ 673 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Allowance for Credit Losses, Accounts Receivable | The following table presents changes in our allowance for credit losses: Credit Card (1) Commercial and Consumer Banking (1) Accounts Receivable (1) Balance at January 1, 2022 $ 7,037 $ — $ 2,292 Provision for credit losses (2) 53,030 1,302 586 Allowance for PCD loans (3) — 382 — Write-offs charged against the allowance (20,957) (6) (93) Balance at December 31, 2022 $ 39,110 $ 1,678 $ 2,785 Provision for credit losses (2) 54,267 678 773 Write-offs charged against the allowance (40,992) (46) (1,721) Balance at December 31, 2023 $ 52,385 $ 2,310 $ 1,837 _____________________ (1) Credit cards and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans held for investment in the consolidated balance sheets. Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the consolidated balance sheets. (2) The provision for credit losses on credit cards and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses in the consolidated statements of operations and comprehensive loss . During the year ended December 31, 2023, recoveries of amounts previously reserved related to credit cards were $2,895, and immaterial during the year ended December 31, 2022. There were immaterial recoveries of amounts previously reserved related to commercial and consumer banking loans during the years ended December 31, 2023 and 2022. The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. During the years ended December 31, 2023 and 2022, recoveries of amounts previously reserved related to accounts receivable were $1,252 and $2,912, respectively. (3) In connection with the Bank Merger, we obtained PCD loans, for which we measured an allowance, with a corresponding increase to the amortized cost basis as of the acquisition date. Therefore, recognition of the initial allowance for credit losses did not impact earnings. |
Schedule of Allowance for Credit Losses, Credit Card Loans | The following table presents changes in our allowance for credit losses: Credit Card (1) Commercial and Consumer Banking (1) Accounts Receivable (1) Balance at January 1, 2022 $ 7,037 $ — $ 2,292 Provision for credit losses (2) 53,030 1,302 586 Allowance for PCD loans (3) — 382 — Write-offs charged against the allowance (20,957) (6) (93) Balance at December 31, 2022 $ 39,110 $ 1,678 $ 2,785 Provision for credit losses (2) 54,267 678 773 Write-offs charged against the allowance (40,992) (46) (1,721) Balance at December 31, 2023 $ 52,385 $ 2,310 $ 1,837 _____________________ (1) Credit cards and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans held for investment in the consolidated balance sheets. Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the consolidated balance sheets. (2) The provision for credit losses on credit cards and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses in the consolidated statements of operations and comprehensive loss . During the year ended December 31, 2023, recoveries of amounts previously reserved related to credit cards were $2,895, and immaterial during the year ended December 31, 2022. There were immaterial recoveries of amounts previously reserved related to commercial and consumer banking loans during the years ended December 31, 2023 and 2022. The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. During the years ended December 31, 2023 and 2022, recoveries of amounts previously reserved related to accounts receivable were $1,252 and $2,912, respectively. (3) In connection with the Bank Merger, we obtained PCD loans, for which we measured an allowance, with a corresponding increase to the amortized cost basis as of the acquisition date. Therefore, recognition of the initial allowance for credit losses did not impact earnings. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments in Debt Securities | The following table presents our investments in AFS debt securities: Amortized Cost Accrued Interest Gross Unrealized Gains Gross Unrealized Losses (1) Fair Value December 31, 2023 U.S. Treasury securities $ 518,673 $ 206 $ 978 $ (780) $ 519,077 Multinational securities (2) 8,548 103 — (17) 8,634 Corporate bonds 32,609 207 — (1,092) 31,724 Agency mortgage-backed securities 28,714 111 33 (1,016) 27,842 Other asset-backed securities 7,272 4 — (154) 7,122 Other (3) 941 8 — (161) 788 Total investments in AFS debt securities $ 596,757 $ 639 $ 1,011 $ (3,220) $ 595,187 December 31, 2022 U.S. Treasury securities $ 121,282 $ 217 $ — $ (3,510) $ 117,989 Multinational securities (2) 19,658 109 — (724) 19,043 Corporate bonds 41,890 257 — (2,644) 39,503 Agency mortgage-backed securities 8,899 22 — (991) 7,930 Other asset-backed securities 9,556 5 — (514) 9,047 Other (3) 2,133 21 — (228) 1,926 Total investments in AFS debt securities $ 203,418 $ 631 $ — $ (8,611) $ 195,438 _____________________ (1) As of December 31, 2023 and December 31, 2022, we concluded that there was no credit loss attributable to securities in unrealized loss positions, as (i) 92% and 67% of the amortized cost basis of our investments as of December 31, 2023 and December 31, 2022, respectively, was composed of U.S. Treasury securities, agency mortgage-backed securities and sovereign foreign bonds, which are of high credit quality and have no risk of credit-related impairment due to the nature of the counterparties and history of no credit losses, and (ii) we have not identified factors indicating credit-related impairment for the remaining investments and expect that the contractual principal and interest payments will be received. 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. (2) Includes supranational and sovereign foreign bonds. (3) Includes state and city municipal bond securities. |
Schedule of Investment Securities in Gross Unrealized Loss Position | The following table presents information about our investments in AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 and December 31, 2022. Less than 12 Months 12 Months or Longer Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2023 U.S. Treasury securities $ 480,012 $ (58) $ 39,065 $ (722) $ 519,077 $ (780) Multinational securities — — 8,634 (17) 8,634 (17) Corporate bonds — — 31,724 (1,092) 31,724 (1,092) Agency mortgage-backed securities 20,930 (157) 6,912 (859) 27,842 (1,016) Other asset-backed securities — — 7,122 (154) 7,122 (154) Other — — 788 (161) 788 (161) Total investments in AFS debt securities $ 500,942 $ (215) $ 94,245 $ (3,005) $ 595,187 $ (3,220) December 31, 2022 U.S. Treasury securities $ 27,759 $ (1,171) $ 90,230 $ (2,339) $ 117,989 $ (3,510) Multinational securities — — 19,043 (724) 19,043 (724) Corporate bonds 4,480 (313) 35,023 (2,331) 39,503 (2,644) Agency mortgage-backed securities 6,448 (814) 1,482 (177) 7,930 (991) Other asset-backed securities — — 9,047 (514) 9,047 (514) Other 745 (200) 1,181 (28) 1,926 (228) Total investments in AFS debt securities $ 39,432 $ (2,498) $ 156,006 $ (6,113) $ 195,438 $ (8,611) |
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: Due Within One Year Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Total December 31, 2023 Investments in AFS debt securities—Amortized cost: U.S. Treasury securities $ 513,281 $ 5,392 $ — $ — $ 518,673 Multinational securities 8,548 — — — 8,548 Corporate bonds 18,122 11,181 3,306 — 32,609 Agency mortgage-backed securities — 135 684 27,895 28,714 Other asset-backed securities 87 5,283 1,902 — 7,272 Other — — — 941 941 Total investments in AFS debt securities $ 540,038 $ 21,991 $ 5,892 $ 28,836 $ 596,757 Weighted average yield for investments in AFS debt securities (1) 4.79 % 0.99 % 2.98 % 3.13 % 4.55 % Due Within One Year Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Total Investments in AFS debt securities—Fair value (2) : U.S. Treasury securities $ 513,710 $ 5,161 $ — $ — $ 518,871 Multinational securities 8,531 — — — 8,531 Corporate bonds 17,785 10,733 2,999 — 31,517 Agency mortgage-backed securities — 128 633 26,970 27,731 Other asset-backed securities 87 5,133 1,898 — 7,118 Other — — — 780 780 Total investments in AFS debt securities $ 540,113 $ 21,155 $ 5,530 $ 27,750 $ 594,548 _____________________ (1) The weighted average yield represents the effective yield for the investment securities owned at the end of the period and is computed based on the amortized cost of each security . (2) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $639 and $631 as of December 31, 2023 and December 31, 2022, respectively. |
Schedule of Nonconsolidated VIEs | The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs, which are presented within investment securities in the consolidated balance sheets: December 31, 2023 2022 Personal loans $ 27,247 $ 20,172 Student loans 79,501 181,159 Securitization investments $ 106,748 $ 201,331 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A rollforward of our goodwill balance is presented below: Year Ended December 31, 2023 2022 Beginning balance $ 1,622,991 $ 898,527 Less: accumulated impairment — — Beginning balance, net 1,622,991 898,527 Additional goodwill recognized (1) 17,688 724,464 Goodwill impairment (2) (247,174) — Ending balance (3) $ 1,393,505 $ 1,622,991 _____________________ (1) For the year ended December 31, 2023, related to the acquisition of Wyndham, which is attributable to our Lending reportable segment. For the year ended December 31, 2022, includes $713,217 related to the Technisys Merger and $11,247 related to the Bank Merger. (2) During the year ended December 31, 2023, we recognized goodwill impairment losses related to our Technology Platform reportable segment, which were reported within noninterest expense—goodwill impairment in the consolidated statements of operations and comprehensive loss. These goodwill impairment losses represent non-cash charges and did not affect our liquidity position or regulatory capital ratios. (3) As of December 31, 2023, goodwill attributable to the Lending, Technology Platform and Financial services reportable segments was $17,688, $1,338,658 and $37,159, respectively. As of December 31, 2022, goodwill attributable to the Technology Platform and Financial services reportable segments was $1,585,832 and $37,159, respectively. |
Schedule of Finite-Lived Intangible Assets | The following is a summary of the carrying amount and estimated useful lives of our intangible assets by class: Weighted Average Useful Life (Years) Gross Balance Accumulated Amortization Net Book Value December 31, 2023 Developed technology (1) 8.5 $ 461,438 $ (151,823) $ 309,615 Customer-related 3.9 167,350 (141,248) 26,102 Trade names, trademarks and domain names 5.9 20,060 (8,436) 11,624 Core banking infrastructure (2) n/a 17,100 (17,100) — Capitalized software development costs (3) 4.0 20,344 (4,461) 15,883 Core deposits 7.3 1,000 (264) 736 Broker-dealer license and trading rights 5.7 250 (162) 88 Total $ 687,542 $ (323,494) $ 364,048 December 31, 2022 Developed technology 8.7 $ 444,438 $ (97,202) $ 347,236 Customer-related 3.9 167,350 (99,264) 68,086 Trade names, trademarks and domain names 8.7 20,060 (4,028) 16,032 Core banking infrastructure (2) n/a 17,100 (17,100) — Capitalized software development costs (3) 4.0 10,532 (737) 9,795 Core deposits 7.3 1,000 (126) 874 Broker-dealer license and trading rights 5.7 250 (118) 132 Total $ 660,730 $ (218,575) $ 442,155 _____________________ (1) During the year ended December 31, 2023, the Company acquired $17,000 in developed technology related to the acquisition of Wyndham. (2) Although the core banking infrastructure intangible asset was fully amortized as of December 31, 2023, it remains in use by the Company. (3) Includes capitalized costs related to software products to be sold, leased or marketed within our technology products and solutions arrangements. During the year ended December 31, 2023, the increase in capitalized software development costs relates to increased Technology Platform activity. During the year ended December 31, 2023, total amortization expense related to capitalized software was $4,246, and capitalized share-based compensation related to capitalized software development costs was immaterial. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization expense associated with intangible assets as of December 31, 2023 is as follows: 2024 $ 74,717 2025 72,766 2026 69,988 2027 53,662 2028 50,474 Thereafter 42,441 Total $ 364,048 |
Property, Equipment, Software_2
Property, Equipment, Software and Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant And Equipment And Leases [Abstract] | |
Schedule of Property, Equipment and Software | The table below presents our major classes of depreciable and amortizable assets by function: Gross Accumulated Depreciation/Amortization Carrying December 31, 2023 Software (1) $ 292,445 $ (117,003) $ 175,442 Leasehold improvements 39,046 (20,467) 18,579 Computer hardware 24,899 (19,000) 5,899 Furniture and fixtures 16,825 (10,797) 6,028 Finance lease ROU assets (2) 15,100 (7,191) 7,909 Building and land 3,192 (141) 3,051 Total $ 391,507 $ (174,599) $ 216,908 December 31, 2022 Software (1) $ 172,101 $ (54,516) $ 117,585 Leasehold improvements 40,257 (17,145) 23,112 Computer hardware 21,265 (13,736) 7,529 Furniture and fixtures 18,808 (10,122) 8,686 Finance lease ROU assets (2) 15,100 (5,033) 10,067 Building and land 3,192 (67) 3,125 Total $ 270,723 $ (100,619) $ 170,104 _____________________ (1) Software primarily includes internally-developed software related to significant developments and enhancements for our products. During the years ended December 31, 2023, 2022 and 2021, we capitalized $31,126, $22,577 and $7,776, respectively, of share-based compensation related to internally-developed software, and recognized associated amortization expense of $16,074, $6,223 and $792 , respectively. (2) Finance lease ROU assets include our rights to certain physical signage within SoFi Stadium. See below for additional information on our leases. |
Schedule of Lease Expenses, Supplemental Cash Flow and Balance Sheet Information | The components of lease expense and supplemental cash flow and non-cash information related to our leases were as follows. Year Ended December 31, 2023 2022 2021 Operating lease cost $ 21,905 $ 20,805 $ 20,188 Finance lease cost – amortization of ROU assets 2,157 2,157 2,157 Finance lease cost – interest expense on lease liabilities 452 469 485 Short-term lease cost 1,718 2,031 1,335 Variable lease cost (1) 3,509 3,483 3,979 Sublease income (1,034) — (717) Total lease cost $ 28,707 $ 28,945 $ 27,427 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 26,997 $ 21,682 $ 19,811 Operating cash outflows from finance leases 452 469 488 Financing cash outflows from finance leases 509 488 516 Supplemental non-cash information Non-cash operating lease ROU assets obtained in exchange for lease liabilities (2) $ 8,553 $ (3,885) $ 12,734 _____________________ (1) Variable lease cost includes non-lease components classified as lease costs, such as common area maintenance fees, property taxes and utilities, that vary in amount for reasons other than the passage of time. We elected the practical expedient to not bifurcate the lease component from the non-lease components. (2) For the years ended December 31, 2023 and 2022, includes $6,995 and $764, respectively, of operating lease ROU assets obtained through acquisitions. Also includes impacts from lease modifications. Supplemental balance sheet information related to our leases was as follows: December 31, 2023 2022 Operating Leases ROU assets $ 89,635 $ 97,135 Operating lease liabilities 108,649 117,758 Weighted average remaining lease term (in years) 6.9 7.5 Weighted average discount rate 5.7 % 5.2 % Finance Leases ROU assets (1) $ 7,909 $ 10,067 Finance lease liabilities (2) 13,172 13,683 Weighted average remaining lease term (in years) 16.3 17.3 Weighted average discount rate 3.4 % 3.4 % _____________________ (1) Finance lease ROU assets are presented within property, equipment and software in the consolidated balance sheets. (2) Finance lease liabilities are presented within accounts payable, accruals and other liabilities |
Schedule of Lease Maturities, Operating Leases | As of December 31, 2023, future maturities of lease liabilities and a reconciliation of the total undiscounted cash flows to the lease liabilities in the consolidated balance sheets were as follows: Operating Leases Finance Leases 2024 $ 24,536 $ 968 2025 23,150 1,038 2026 21,513 1,060 2027 15,773 1,061 2028 15,211 1,061 Thereafter 33,296 11,931 Total 133,479 17,119 Less: imputed interest (24,830) (3,947) Lease liabilities $ 108,649 $ 13,172 |
Schedule of Lease Maturities, Finance Leases | As of December 31, 2023, future maturities of lease liabilities and a reconciliation of the total undiscounted cash flows to the lease liabilities in the consolidated balance sheets were as follows: Operating Leases Finance Leases 2024 $ 24,536 $ 968 2025 23,150 1,038 2026 21,513 1,060 2027 15,773 1,061 2028 15,211 1,061 Thereafter 33,296 11,931 Total 133,479 17,119 Less: imputed interest (24,830) (3,947) Lease liabilities $ 108,649 $ 13,172 |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets And Liabilities [Abstract] | |
Schedule of Other Assets | The following table presents the components of other assets : December 31, 2023 2022 Accounts receivable, net (1) $ 169,852 $ 127,050 Prepaid expenses and capitalized contract costs (2) 112,748 73,429 Credit default swap (3) 103,204 — Restricted investments (4) 83,551 28,651 Investments in equity securities (5) 22,920 22,825 Digital assets safeguarding asset (6) 9,292 106,826 Derivative financial instruments (7) 6,916 34,610 Other 45,883 23,943 Other assets $ 554,366 $ 417,334 _____________________ (1) Includes accounts receivable, net of allowance for credit losses, associated with revenue from contracts with customers, deposit-related receivables and other receivables. See Note 5. Allowance for Credit Losses for information on the allowance for credit losses on accounts receivable. (2) Includes capitalized incremental costs of obtaining certain contracts of $60,729 as of December 31, 2023 which are amortized over the life of the account through noninterest expense—sales and marketing on the consolidated statements of operations and comprehensive loss. (3) We entered into a credit default swap related to our student loans which meets the definition of a financial guarantee and is excluded from derivative accounting treatment. We apply the insurance contract claim method by deferring the full estimated amount of premiums paid and payable at inception. (4) Includes investments in FRB stock and FHLB stock, which are restricted investment securities that are not marketable. These investments are carried at cost and assessed for impairment. (5) As of December 31, 2023, primarily included an investment that was entered into in 2021 and recorded as an equity method investment until January 2022 in conjunction with relinquishing our seat on the investee’s board of directors. Our equity method investment income for the year ended December 31, 2023 was immaterial and we did not receive any distributions. (6) See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 15. Fair Value Measurements for additional information on the digital assets safeguarding asset. (7) See Note 14. Derivative Financial Instruments and Note 15. Fair Value Measurements for additional information on derivative financial instruments. |
Schedule of Accounts Payable, Accruals and Other Liabilities | The following table presents the components of accounts payable, accruals and other liabilities : December 31, 2023 2022 Accrued expenses (1) $ 202,259 $ 145,971 Credit default swap (2) 103,204 — Accounts payable 93,301 126,875 Accrued interest 66,614 17,700 Deferred tax liabilities, net (3) 40,229 56,482 Finance lease liability (4) 13,172 13,683 Digital assets safeguarding liability (5) 9,292 106,826 Deferred revenue (6) 5,718 10,028 Derivative financial instruments (7) 4,604 9,251 Other 11,355 29,399 Accounts payable, accruals and other liabilities $ 549,748 $ 516,215 _____________________ (1) Includes accrued compensation and compensation-related expenses, accrued taxes and other accrued expenses. (2) See footnote (3) to the table above. (3) See Note 17. Income Taxes for additional information on income taxes. (4) See Note 9. Property, Equipment, Software and Leases for additional information on finance leases. (5) See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 15. Fair Value Measurements for additional information on the digital assets safeguarding liability. (6) See Note 3. Revenue for additional information on deferred revenue. (7) See Note 14. Derivative Financial Instruments and Note 15. Fair Value Measurements for additional information on derivative financial instruments. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Interest-Bearing Deposits | The following table presents a detail of interest-bearing deposits: December 31, 2023 2022 Savings deposits $ 12,902,033 $ 4,383,953 Demand deposits (1) 2,663,335 1,912,452 Time deposits (1)(2) 3,003,625 969,387 Total interest-bearing deposits $ 18,568,993 $ 7,265,792 _____________________ (1) As of December 31, 2023 and December 31, 2022, includes brokered deposits of $3,160,414 and $1,026,400, respectively, of which $2,971,462 and $940,000, respectively, are time deposits and $188,952 and $86,400, respectively, are demand deposits. (2) As of December 31, 2023 and December 31, 2022, the amount of time deposits that exceeded the insured limit (referred to as “uninsured deposits”) totaled $21,268 and $20,842, respectively. |
Schedule of Future Maturities of Time Deposits | As of December 31, 2023, future maturities of our total time deposits were as follows: 2024 $ 2,578,881 2025 424,198 2026 296 2028 250 Total $ 3,003,625 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the components of our debt: December 31, 2023 December 31, 2022 Borrowing Description Total Collateral (1) Stated Interest Rate (2) Weighted Average Effective Interest Rate (3) Termination/Maturity (4) Total Capacity Total Outstanding (5) Total Outstanding Debt Facilities Personal loan warehouse facilities $ 1,271,233 5.61% – 7.30% 6.20% January 2024 – January 2032 $ 4,925,000 $ 1,077,444 $ 1,452,085 Student loan warehouse facilities 2,530,122 6.13% – 7.16% 6.72% April 2024 – December 2026 3,945,000 2,095,046 1,504,926 Credit card warehouse facility — 6.68% —% June 2025 100,000 — — Risk retention warehouse facilities (6) 74,043 5.47% – 8.72% 7.03% January 2024 – October 2027 200,000 67,038 101,964 Revolving credit facility (7) 6.95% 7.07% April 2028 645,000 486,000 486,000 Other Debt Convertible senior notes (8) —% 0.43% October 2026 1,111,972 1,200,000 Other financing (9) 186,556 216,525 — — Securitizations Personal loan securitizations 494,643 1.30% – 6.21% 5.94% September 2030 – May 2031 239,340 529,132 Student loan securitizations 212,140 3.09% – 4.44% 3.83% May 2040 – August 2048 182,744 246,856 Total, before unamortized debt issuance costs, premiums and discounts $ 5,259,584 $ 5,520,963 Less: unamortized debt issuance costs, premiums and discounts (26,168) (35,081) Total debt $ 5,233,416 $ 5,485,882 _____________________ (1) As of December 31, 2023, represents the total of the unpaid principal balances within each debt category, 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 may vary period to period due to the timing of the next scheduled payment to the warehouse facility. (2) For variable-rate debt, the ranges of stated interest rates are based on the interest rates in effect as of December 31, 2023. The interest on our variable-rate debt is typically designed as a reference rate plus a spread. Reference rates as of December 31, 2023 included overnight SOFR, one-month SOFR, three-month SOFR, prime rate and commercial paper rates determined by the facility lenders. As debt arrangements are renewed, the reference rate and/or spread are subject to change. Unused commitment fees ranging from 0 to 65 bps on our various warehouse facilities are recognized within noninterest expense—general and administrative in our consolidated statements of operations and comprehensive loss. (3) Weighted average effective interest rates are calculated based on the interest rates in effect as of December 31, 2023 and include the amortization of debt issuance costs. (4) 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. (5) There were no debt discounts or premiums issued during the year ended December 31, 2023. (6) For risk retention warehouse facilities, we only state capacity amounts for facilities wherein we can pledge additional asset-backed bonds and residual investments as of the balance sheet date. (7) As of December 31, 2023, $13.1 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure letters of credit. Refer to our letter of credit disclosures in Note 18. Commitments, Guarantees, Concentrations and Contingencies 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 the prime rate. (8) The original issue discount and debt issuance costs related to the convertible senior notes are amortized into interest expense—corporate borrowings in the consolidated statements of operations and comprehensive loss using the effective interest method over the contractual term of the notes. For the years ended December 31, 2023, 2022 and 2021, total interest expense on the convertible notes was $5.1 million, $5.1 million and $1.2 million, respectively, and the effective interest rate was 0.43%, 0.42% and 0.43%, respectively, related to amortization of debt discount and issuance costs. As of December 31, 2023 and December 31, 2022, unamortized debt discount and issuance costs were $13.3 million and $19.4 million, respectively, and the net carrying amount was $1.10 billion and $1.18 billion, respectively. (9) Includes $54.8 million of loans and $131.7 million of investment securities pledged as collateral to secure $166.5 million of available borrowing capacity with the FHLB, of which $27.2 million was not available as it was utilized to secure letters of credit. Refer to our letter of credit disclosures in Note 18. Commitments, Guarantees, Concentrations and Contingencies for more details. Also includes unsecured available borrowing capacity of $50.0 million with correspondent banks. |
Schedule of Maturities of Borrowings | Future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows: December 31, 2023 2024 $ — 2025 — 2026 1,111,972 2027 — 2028 486,000 Thereafter — Total $ 1,597,972 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Valuation Inputs for Warrant Liability | The key inputs into our Black-Scholes Model valuation as of May 28, 2021, the final measurement date, were as follows: Input May 28, 2021 Risk-free interest rate 0.3 % Expected term (years) 2.9 Expected volatility 33.9 % Dividend yield — Exercise price $ 8.86 Fair value of Series H preferred stock $ 21.89 The following key unobservable assumptions were used in the fair value measurement of our loans: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Conditional prepayment rate 17.5% – 29.5% 23.2% 17.3% – 25.5% 19.1% Annual default rate 4.5% – 50.4% 4.8% 3.8% – 37.7% 4.4% Discount rate 5.5% – 8.1% 5.5% 5.4% – 8.3% 6.1% Student loans Conditional prepayment rate 8.4% – 12.6% 10.5% 16.3% – 21.8% 20.4% Annual default rate 0.4% – 6.4% 0.6% 0.2% – 4.5% 0.5% Discount rate 4.1% – 8.1% 4.3% 3.6% – 8.7% 4.0% Home loans (1) Conditional prepayment rate n/m n/m 2.0% – 10.2% 7.0% Annual default rate n/m n/m 0.1% – 1.3% 0.1% Discount rate n/m n/m 5.7% – 14.1% 5.9% _____________________ (1) As of December 31, 2023, we had no Level 3 home loans. The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Market servicing costs 0.1% – 1.8% 0.2% 0.2% – 0.5% 0.3% Conditional prepayment rate 17.9% – 35.5% 22.4% 17.9% – 31.3% 22.7% Annual default rate 3.3% – 22.5% 4.7% 3.4% – 7.9% 4.9% Discount rate 8.8% – 8.8% 8.8% 7.8% – 7.8% 7.8% Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 10.9% – 15.3% 12.2% 15.4% – 21.9% 17.8% Annual default rate 0.3% – 3.7% 0.6% 0.3% – 4.3% 0.4% Discount rate 8.8% – 8.8% 8.8% 7.8% – 7.8% 7.8% Home loans Market servicing costs 0.1% – 0.2% 0.2% 0.1% – 0.1% 0.1% Conditional prepayment rate 5.6% – 24.0% 8.1% 4.9% – 11.0% 5.2% Annual default rate 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Discount rate 9.2% – 10.0% 9.3% 9.0% – 9.0% 9.0% The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 12.2% – 28.3% 14.8% 17.9% – 32.0% 19.9% Annual default rate 0.5% – 6.9% 1.4% 0.4% – 5.4% 1.1% Discount rate 5.8% – 15.5% 8.7% 4.8% – 10.5% 6.7% Residual interests classified as debt Conditional prepayment rate 12.3% – 12.6% 12.4% 17.2% – 18.1% 17.8% Annual default rate 0.7% – 0.7% 0.7% 0.6% – 0.8% 0.7% Discount rate 10.0% – 10.3% 10.0% 7.5% – 7.5% 7.5% December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 71.9% – 77.2% 76.3% 11.1% – 58.6% 46.3% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% - 95.0% 95.0% _____________________ (1) The aggregate amount of student loans we committed to fund was $89,369 as of December 31, 2023. The higher assumptions in the 2023 period reflect the home loan funding pipeline associated with our acquisition of Wyndham. See Note 14. Derivative Financial Instruments for the aggregate notional amount associated with IRLCs. Input Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Risk-free interest rate 1.6% 1.6% 0.8% – 0.8% Expected volatility 37.7% 37.7% 34.9% – 35.9% Fair value of common stock $12.06 $12.06 $16.99 – $23.21 Dividend yield —% —% —% |
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 year ended December 31, 2021, prior to the Closing of the Business Combination. Warrant Liabilities Fair value as of January 1, 2021 $ 39,959 Change in valuation inputs or other assumptions (1) 121,816 Reclassification to permanent equity in conjunction with the Business Combination (2) (161,775) Fair value as of December 31, 2021 $ — _____________________ (1) Changes in valuation inputs or other assumptions are recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. (2) Upon the Closing of the Business Combination, Social Finance Series H warrants were converted into SoFi Technologies common stock warrants and reclassified to permanent equity, as the warrants no longer had features requiring liability based accounting and, therefore, represented a non-cash activity. The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). During the year ended December 31, 2023, we had transfers out of Level 3 of $66,198 and no transfers into Level 3. During the year ended December 31, 2022, we did not have any transfers into or out of Level 3. Fair Value at Fair Value at January 1, Impact on Earnings Purchases Sales Issuances Settlements Other Changes Transfers Out of Level 3 December 31, Assets Personal loans $ 8,610,434 $ (5,045) $ 61,951 $ (938,403) $ 13,801,065 $ (6,197,997) $ (1,432) $ — $ 15,330,573 Student loans 4,877,177 174,005 111,923 (96,678) 2,630,040 (970,690) (293) — 6,725,484 Home loans 69,463 6,694 24,783 (1,029,214) 997,492 (3,359) 339 (66,198) — Loans at fair value (1) 13,557,074 175,654 198,657 (2,064,295) 17,428,597 (7,172,046) (1,386) (66,198) 22,056,057 Servicing rights (2) 149,854 34,700 2,464 (1,259) 59,119 (64,409) — — 180,469 Residual investments (3) 46,238 1,375 3,235 (807) — (14,121) — — 35,920 IRLCs (4) 216 5,323 363 — — (3,747) — — 2,155 Student loan commitments (4) (236) 7,480 — — — (1,779) — — 5,465 Third party warrants (5) 630 — — — — — — — 630 Purchase price earn out (6) 54 9 — — — (63) — — — Liabilities Residual interests classified as debt (3) (17,048) (425) (1,203) — — 11,280 — — (7,396) Net impact on earnings $ 224,116 Fair Value at Fair Value at January 1, 2022 Impact on Earnings Purchases Sales Issuances Settlements Other Changes December 31, 2022 Assets Personal loans $ 2,289,426 $ 129,132 $ 1,677,682 $ (2,911,491) $ 9,773,705 $ (2,322,634) $ (25,386) $ 8,610,434 Student loans 3,450,837 15,786 817,864 (877,920) 2,245,499 (734,937) (39,952) 4,877,177 Home loans 212,709 (10,840) 2,901 (1,094,981) 966,177 (6,503) — 69,463 Loans at fair value (1) 5,952,972 134,078 2,498,447 (4,884,392) 12,985,381 (3,064,074) (65,338) 13,557,074 Servicing rights (2) 168,259 39,651 3,712 (22,020) 45,126 (84,874) — 149,854 Residual investments (3) 121,019 2,240 — (36,732) — (40,289) — 46,238 IRLCs (4) 3,759 (2,630) — — — (913) — 216 Third party warrants (5) 1,369 (739) — — — — — 630 Purchase price earn out (6) 4,272 1,094 — — — (5,312) — 54 Liabilities Residual interests classified as debt (3) (93,682) (6,608) — — — 83,242 — (17,048) Student loan commitments (4) 2,220 (1,876) — — — (580) — (236) Net impact on earnings $ 165,210 _____________________ (1) For loans at fair value, purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity included securitization clean-up calls of $39,936 during the year ended December 31, 2023, and $518,659 during the year ended December 31, 2022. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Issuances represent the principal balance of loans originated during the period. Settlements represent principal payments made on loans during the period. Other changes represent fair value adjustments that impact the balance sheet primarily associated with whole loan strategic repurchases, clean up calls and consolidated securitizations. During the year ended December 31, 2023, we had $66,198 of transfers out of Level 3 related to our home loans related to an update to pricing sources utilized by third-party valuation specialists. Impacts on earnings for loans at fair value are recorded within interest income—loans and securitizations , within noninterest income—loan origination, sales, and securitizations , and within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss . (2) For servicing rights, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss . (3) For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss, a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—loans and securitizations for residual investments, but does not impact the liability or asset balance, respectively. (4) For IRLCs and student loan commitments, settlements reflect funded and unfunded adjustments representing the unpaid principal balance of funded and unfunded loans during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. Purchases of IRLCs during the year ended December 31, 2023 were associated with our acquisition of Wyndham. For year-to-date periods, amounts represent the summation of the per-quarter effects. For IRLCs and student loan commitments, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (5) For purchase price earn out, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (6) For third party warrants, impacts on earnings are recorded within noninterest income—other in the consolidated statements of operations and comprehensive loss. |
Schedule of Common Stock, Reserved for Future Issuance | The Company reserved the following common stock for future issuance: December 31, 2023 2022 Outstanding stock options, restricted stock units and performance stock units 99,016,409 107,851,565 Outstanding common stock warrants 12,170,990 12,170,990 Conversion of convertible notes (1) 49,610,631 53,538,000 Possible future issuance under stock plans 45,384,011 26,434,957 Total common stock reserved for future issuance 206,182,041 199,995,512 _____________________ (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. |
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 income (loss): AFS Debt Securities Foreign Currency Translation Adjustments Total Balance at January 1, 2021 $ — $ (166) $ (166) Other comprehensive income (loss) before reclassifications (1) (1,459) 46 (1,413) Amounts reclassified from AOCI into earnings 108 — 108 Net current-period other comprehensive income (loss) (2) (1,351) 46 (1,305) Balance at December 31, 2021 $ (1,351) $ (120) $ (1,471) Other comprehensive income (loss) before reclassifications (1) (7,545) 435 (7,110) Amounts reclassified from AOCI into earnings 285 — 285 Net current-period other comprehensive income (loss) (2) (7,260) 435 (6,825) Balance at December 31, 2022 $ (8,611) $ 315 $ (8,296) Other comprehensive income before reclassifications (1) 6,238 677 6,915 Amounts reclassified from AOCI into earnings 172 — 172 Net current-period other comprehensive income (2) 6,410 677 7,087 Balance at December 31, 2023 $ (2,201) $ 992 $ (1,209) _____________________ (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 consolidated statements of operations and comprehensive loss. There were no reclassifications related to foreign currency translation adjustments during the years ended December 31, 2023, 2022 and 2021. (2) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the gains (losses) recognized on our derivative instruments: Year Ended December 31, 2023 2022 2021 Interest rate swaps (1) $ (8,782) $ 302,002 $ 42,741 Interest rate caps (1) (5,910) 8,680 (125) Home loan pipeline hedges (1) 2,558 44,152 6,474 Derivative contracts to manage future loan sale execution risk (12,134) 354,834 49,090 Interest rate swaps (2) 876 15,064 — IRLCs (1) 1,576 (3,543) (11,861) Interest rate caps (1) 5,975 (8,583) (193) Purchase price earn-out (1)(3) 9 1,094 9,312 Third party warrants (4) 78 (21) 573 Special payment (5) — — (21,181) Total $ (3,620) $ 358,845 $ 25,740 _____________________ (1) Recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (2) Represents derivative contracts to manage securitization investment interest rate risk, which are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (3) In conjunction with a loan sale agreement, we are entitled to receive payments from the buyer of the loans underlying the agreement if the internal rate of return (as defined in the loan sale agreement) on such loans exceeds a specified hurdle, subject to a dollar cap. (4) Includes amounts recorded within noninterest income—other, noninterest expense—cost of operations and noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss, the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired, as we are also a customer of the third party. (5) In conjunction with the Business Combination, we made a one-time special payment to the holders of Series 1 Redeemable Preferred Stock, which was paid from the proceeds of the Business Combination and settled contemporaneously with the Business Combination. The special payment was recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss, as this feature was accounted for as an embedded derivative that was not clearly and closely related to the host contract, and will not have a subsequent impact on our consolidated financial results. The Series 1 Redeemable Preferred Stock has no stated maturity. |
Schedule of Offsetting Assets | The following table presents information about derivative instruments subject to enforceable master netting arrangements: December 31, 2023 December 31, 2022 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Interest rate swaps $ 2,208 $ (1,347) $ 23,128 $ — Interest rate caps — (3,276) — (9,251) Home loan pipeline hedges 1 (1,328) 1,484 (80) Total, gross $ 2,209 $ (5,951) $ 24,612 $ (9,331) Derivative netting (1,347) 1,347 (80) 80 Total, net (1) $ 862 $ (4,604) $ 24,532 $ (9,251) _____________________ (1) We did not have a cash collateral requirement related to these instruments as of December 31, 2023 and December 31, 2022. |
Schedule of Offsetting Liabilities | The following table presents information about derivative instruments subject to enforceable master netting arrangements: December 31, 2023 December 31, 2022 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Interest rate swaps $ 2,208 $ (1,347) $ 23,128 $ — Interest rate caps — (3,276) — (9,251) Home loan pipeline hedges 1 (1,328) 1,484 (80) Total, gross $ 2,209 $ (5,951) $ 24,612 $ (9,331) Derivative netting (1,347) 1,347 (80) 80 Total, net (1) $ 862 $ (4,604) $ 24,532 $ (9,251) _____________________ (1) We did not have a cash collateral requirement related to these instruments as of December 31, 2023 and December 31, 2022. |
Schedule of Notional Amounts of Derivatives | The following table presents the notional amount of derivative contracts outstanding: December 31, 2023 2022 Derivative contracts to manage future loan sale execution risk: Interest rate swaps $ 12,491,000 $ 5,638,177 Interest rate caps 405,000 405,000 Home loan pipeline hedges 226,000 126,000 Interest rate caps (1) 405,000 405,000 Interest rate swaps (2) 84,000 171,823 IRLCs (3) 126,388 82,335 Total $ 13,737,388 $ 6,828,335 _____________________ (1) 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. (2) Represents interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments. (3) Amounts correspond with home loan funding commitments subject to IRLC agreements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table summarizes, by level within the fair value hierarchy, the estimated fair values of our assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets: December 31, 2023 December 31, 2022 Fair Value Fair Value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Investments in AFS debt securities (1)(2) $ 527,711 $ 67,476 $ — $ 595,187 $ 137,032 $ 58,406 $ — $ 195,438 Asset-backed bonds (2)(3) — 70,828 — 70,828 — 155,093 — 155,093 Residual investments (2)(3) — — 35,920 35,920 — — 46,238 46,238 Loans at fair value (4) — 66,198 22,056,057 22,122,255 — — 13,557,074 13,557,074 Servicing rights — — 180,469 180,469 — — 149,854 149,854 Third party warrants (5)(6) — — 630 630 — — 630 630 Derivative assets (5)(7)(8) — 2,209 — 2,209 — 24,612 — 24,612 Purchase price earn-out (5)(9) — — — — — — 54 54 IRLCs (5)(10) — — 2,155 2,155 — — 216 216 Student loan commitments (5)(10) — — 5,465 5,465 — — — — Interest rate caps (5)(8) — 3,269 — 3,269 — 9,178 — 9,178 Digital assets safeguarding asset (5)(11) — 9,292 — 9,292 — 106,826 — 106,826 Total assets $ 527,711 $ 219,272 $ 22,280,696 $ 23,027,679 $ 137,032 $ 354,115 $ 13,754,066 $ 14,245,213 Liabilities Debt (12) $ — $ 119,641 $ — $ 119,641 $ — $ 89,142 $ — $ 89,142 Residual interests classified as debt — — 7,396 7,396 — — 17,048 17,048 Derivative liabilities (5)(7)(8) — 5,951 — 5,951 — 9,331 — 9,331 Student loan commitments (5)(10) — — — — — — 236 236 Digital assets safeguarding liability (5)(11) — 9,292 — 9,292 — 106,826 — 106,826 Total liabilities $ — $ 134,884 $ 7,396 $ 142,280 $ — $ 205,299 $ 17,284 $ 222,583 _____________________ (1) The investments in AFS debt securities that were classified as Level 2 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 6. Investment Securities for additional information. (2) These assets are presented within investment securities in the consolidated balance sheets. (3) These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. See Note 7. Securitization and Variable Interest Entities for additional information. We classify 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 key inputs used to value the asset-backed bonds include the discount rate and conditional prepayment rate. 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 are expected to absorb all estimated losses based on our default assumptions for the period. We classify the residual investments as Level 3 due to the reliance on significant unobservable valuation inputs. (4) During the year ended December 31, 2023, we transferred $66,198 out of Level 3 into Level 2 relating to home loans due to an update to pricing sources utilized by third-party valuation specialists, as part of the integration of Wyndham. Personal loans and student loans classified as Level 3 do not trade in an active market with readily observable prices. Personal loans and home loans are presented within loans held for sale, at fair value . As of December 31, 2023 and December 31, 2022, student loans are presented within loans held for investment, at fair value and loans held for sale, at fair value , respectively. (5) These assets and liabilities are presented within other assets and accounts payable, accruals and other liabilities , respectively, in the consolidated balance sheets. (6) The key unobservable assumption used in the fair value measurement of the third party warrants was the price of the stock underlying the warrants. The fair value was measured as the difference between the stock price and the strike price of the warrants. As the strike price was insignificant, we concluded that the impact of time value on the fair value measure was immaterial. (7) 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. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 14. Derivative Financial Instruments for additional information. (8) Home loan pipeline hedges represent TBAs used as economic hedges of loan fair values and are classified as Level 2, as we rely on quoted market prices from similar loan pools that transact in the marketplace. 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. As of December 31, 2023 and December 31, 2022, interest rate swaps and interest rate caps were valued using the overnight SOFR curve and the implied volatilities suggested by the SOFR rate curve. These were determined to be observable inputs from active markets. (9) The purchase price earn-out provision is classified as Level 3 because of our reliance on unobservable inputs related to the underlying loan portfolio performance, such as conditional prepayment rates, annual default rates and discount rates. (10) 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. (11) The digital assets safeguarding liability and corresponding safeguarding asset are classified as Level 2, because they do not trade in active markets, and are valued using quoted prices on an active exchange that has been identified as the principal market for the underlying digital assets that are being held by our third-party custodians for the benefit of our members. Refer to Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards for additional information about our digital assets activities. (12) The fair value of our securitization debt was classified as Level 2 and 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. As of December 31, 2023 and December 31, 2022, the unpaid principal related to debt measured at fair value was $128,619 and $98,868, respectively. For the years ended December 31, 2023 and 2022, losses from changes in fair value were $2,969 and $586, respectively. The estimated amounts of gains (losses) included in earnings attributable to changes in instrument-specific credit risk, which were derived principally from observable changes in credit spread as observed in the bond market, were immaterial for the years ended December 31, 2023 and 2022. |
Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis | The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). During the year ended December 31, 2023, we had transfers out of Level 3 of $66,198 and no transfers into Level 3. During the year ended December 31, 2022, we did not have any transfers into or out of Level 3. Fair Value at Fair Value at January 1, Impact on Earnings Purchases Sales Issuances Settlements Other Changes Transfers Out of Level 3 December 31, Assets Personal loans $ 8,610,434 $ (5,045) $ 61,951 $ (938,403) $ 13,801,065 $ (6,197,997) $ (1,432) $ — $ 15,330,573 Student loans 4,877,177 174,005 111,923 (96,678) 2,630,040 (970,690) (293) — 6,725,484 Home loans 69,463 6,694 24,783 (1,029,214) 997,492 (3,359) 339 (66,198) — Loans at fair value (1) 13,557,074 175,654 198,657 (2,064,295) 17,428,597 (7,172,046) (1,386) (66,198) 22,056,057 Servicing rights (2) 149,854 34,700 2,464 (1,259) 59,119 (64,409) — — 180,469 Residual investments (3) 46,238 1,375 3,235 (807) — (14,121) — — 35,920 IRLCs (4) 216 5,323 363 — — (3,747) — — 2,155 Student loan commitments (4) (236) 7,480 — — — (1,779) — — 5,465 Third party warrants (5) 630 — — — — — — — 630 Purchase price earn out (6) 54 9 — — — (63) — — — Liabilities Residual interests classified as debt (3) (17,048) (425) (1,203) — — 11,280 — — (7,396) Net impact on earnings $ 224,116 Fair Value at Fair Value at January 1, 2022 Impact on Earnings Purchases Sales Issuances Settlements Other Changes December 31, 2022 Assets Personal loans $ 2,289,426 $ 129,132 $ 1,677,682 $ (2,911,491) $ 9,773,705 $ (2,322,634) $ (25,386) $ 8,610,434 Student loans 3,450,837 15,786 817,864 (877,920) 2,245,499 (734,937) (39,952) 4,877,177 Home loans 212,709 (10,840) 2,901 (1,094,981) 966,177 (6,503) — 69,463 Loans at fair value (1) 5,952,972 134,078 2,498,447 (4,884,392) 12,985,381 (3,064,074) (65,338) 13,557,074 Servicing rights (2) 168,259 39,651 3,712 (22,020) 45,126 (84,874) — 149,854 Residual investments (3) 121,019 2,240 — (36,732) — (40,289) — 46,238 IRLCs (4) 3,759 (2,630) — — — (913) — 216 Third party warrants (5) 1,369 (739) — — — — — 630 Purchase price earn out (6) 4,272 1,094 — — — (5,312) — 54 Liabilities Residual interests classified as debt (3) (93,682) (6,608) — — — 83,242 — (17,048) Student loan commitments (4) 2,220 (1,876) — — — (580) — (236) Net impact on earnings $ 165,210 _____________________ (1) For loans at fair value, purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity included securitization clean-up calls of $39,936 during the year ended December 31, 2023, and $518,659 during the year ended December 31, 2022. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Issuances represent the principal balance of loans originated during the period. Settlements represent principal payments made on loans during the period. Other changes represent fair value adjustments that impact the balance sheet primarily associated with whole loan strategic repurchases, clean up calls and consolidated securitizations. During the year ended December 31, 2023, we had $66,198 of transfers out of Level 3 related to our home loans related to an update to pricing sources utilized by third-party valuation specialists. Impacts on earnings for loans at fair value are recorded within interest income—loans and securitizations , within noninterest income—loan origination, sales, and securitizations , and within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss . (2) For servicing rights, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss . (3) For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss, a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—loans and securitizations for residual investments, but does not impact the liability or asset balance, respectively. (4) For IRLCs and student loan commitments, settlements reflect funded and unfunded adjustments representing the unpaid principal balance of funded and unfunded loans during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. Purchases of IRLCs during the year ended December 31, 2023 were associated with our acquisition of Wyndham. For year-to-date periods, amounts represent the summation of the per-quarter effects. For IRLCs and student loan commitments, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (5) For purchase price earn out, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (6) For third party warrants, impacts on earnings are recorded within noninterest income—other in the consolidated statements of operations and comprehensive loss. |
Schedule of Changes in Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the changes in the fair value of the Series H warrant liabilities during the year ended December 31, 2021, prior to the Closing of the Business Combination. Warrant Liabilities Fair value as of January 1, 2021 $ 39,959 Change in valuation inputs or other assumptions (1) 121,816 Reclassification to permanent equity in conjunction with the Business Combination (2) (161,775) Fair value as of December 31, 2021 $ — _____________________ (1) Changes in valuation inputs or other assumptions are recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss. (2) Upon the Closing of the Business Combination, Social Finance Series H warrants were converted into SoFi Technologies common stock warrants and reclassified to permanent equity, as the warrants no longer had features requiring liability based accounting and, therefore, represented a non-cash activity. The following tables present the changes in our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). During the year ended December 31, 2023, we had transfers out of Level 3 of $66,198 and no transfers into Level 3. During the year ended December 31, 2022, we did not have any transfers into or out of Level 3. Fair Value at Fair Value at January 1, Impact on Earnings Purchases Sales Issuances Settlements Other Changes Transfers Out of Level 3 December 31, Assets Personal loans $ 8,610,434 $ (5,045) $ 61,951 $ (938,403) $ 13,801,065 $ (6,197,997) $ (1,432) $ — $ 15,330,573 Student loans 4,877,177 174,005 111,923 (96,678) 2,630,040 (970,690) (293) — 6,725,484 Home loans 69,463 6,694 24,783 (1,029,214) 997,492 (3,359) 339 (66,198) — Loans at fair value (1) 13,557,074 175,654 198,657 (2,064,295) 17,428,597 (7,172,046) (1,386) (66,198) 22,056,057 Servicing rights (2) 149,854 34,700 2,464 (1,259) 59,119 (64,409) — — 180,469 Residual investments (3) 46,238 1,375 3,235 (807) — (14,121) — — 35,920 IRLCs (4) 216 5,323 363 — — (3,747) — — 2,155 Student loan commitments (4) (236) 7,480 — — — (1,779) — — 5,465 Third party warrants (5) 630 — — — — — — — 630 Purchase price earn out (6) 54 9 — — — (63) — — — Liabilities Residual interests classified as debt (3) (17,048) (425) (1,203) — — 11,280 — — (7,396) Net impact on earnings $ 224,116 Fair Value at Fair Value at January 1, 2022 Impact on Earnings Purchases Sales Issuances Settlements Other Changes December 31, 2022 Assets Personal loans $ 2,289,426 $ 129,132 $ 1,677,682 $ (2,911,491) $ 9,773,705 $ (2,322,634) $ (25,386) $ 8,610,434 Student loans 3,450,837 15,786 817,864 (877,920) 2,245,499 (734,937) (39,952) 4,877,177 Home loans 212,709 (10,840) 2,901 (1,094,981) 966,177 (6,503) — 69,463 Loans at fair value (1) 5,952,972 134,078 2,498,447 (4,884,392) 12,985,381 (3,064,074) (65,338) 13,557,074 Servicing rights (2) 168,259 39,651 3,712 (22,020) 45,126 (84,874) — 149,854 Residual investments (3) 121,019 2,240 — (36,732) — (40,289) — 46,238 IRLCs (4) 3,759 (2,630) — — — (913) — 216 Third party warrants (5) 1,369 (739) — — — — — 630 Purchase price earn out (6) 4,272 1,094 — — — (5,312) — 54 Liabilities Residual interests classified as debt (3) (93,682) (6,608) — — — 83,242 — (17,048) Student loan commitments (4) 2,220 (1,876) — — — (580) — (236) Net impact on earnings $ 165,210 _____________________ (1) For loans at fair value, purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity included securitization clean-up calls of $39,936 during the year ended December 31, 2023, and $518,659 during the year ended December 31, 2022. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements. Issuances represent the principal balance of loans originated during the period. Settlements represent principal payments made on loans during the period. Other changes represent fair value adjustments that impact the balance sheet primarily associated with whole loan strategic repurchases, clean up calls and consolidated securitizations. During the year ended December 31, 2023, we had $66,198 of transfers out of Level 3 related to our home loans related to an update to pricing sources utilized by third-party valuation specialists. Impacts on earnings for loans at fair value are recorded within interest income—loans and securitizations , within noninterest income—loan origination, sales, and securitizations , and within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss . (2) For servicing rights, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss . (3) For residual investments, sales include the derecognition of investments associated with securitization clean up calls. The estimated amounts of gains and losses for residual investments included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented. For residual investments and residual interests classified as debt, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss, a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—loans and securitizations for residual investments, but does not impact the liability or asset balance, respectively. (4) For IRLCs and student loan commitments, settlements reflect funded and unfunded adjustments representing the unpaid principal balance of funded and unfunded loans during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. Purchases of IRLCs during the year ended December 31, 2023 were associated with our acquisition of Wyndham. For year-to-date periods, amounts represent the summation of the per-quarter effects. For IRLCs and student loan commitments, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (5) For purchase price earn out, impacts on earnings are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss. (6) For third party warrants, impacts on earnings are recorded within noninterest income—other in the consolidated statements of operations and comprehensive loss. |
Schedule of Valuation Inputs and Assumptions | The key inputs into our Black-Scholes Model valuation as of May 28, 2021, the final measurement date, were as follows: Input May 28, 2021 Risk-free interest rate 0.3 % Expected term (years) 2.9 Expected volatility 33.9 % Dividend yield — Exercise price $ 8.86 Fair value of Series H preferred stock $ 21.89 The following key unobservable assumptions were used in the fair value measurement of our loans: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Conditional prepayment rate 17.5% – 29.5% 23.2% 17.3% – 25.5% 19.1% Annual default rate 4.5% – 50.4% 4.8% 3.8% – 37.7% 4.4% Discount rate 5.5% – 8.1% 5.5% 5.4% – 8.3% 6.1% Student loans Conditional prepayment rate 8.4% – 12.6% 10.5% 16.3% – 21.8% 20.4% Annual default rate 0.4% – 6.4% 0.6% 0.2% – 4.5% 0.5% Discount rate 4.1% – 8.1% 4.3% 3.6% – 8.7% 4.0% Home loans (1) Conditional prepayment rate n/m n/m 2.0% – 10.2% 7.0% Annual default rate n/m n/m 0.1% – 1.3% 0.1% Discount rate n/m n/m 5.7% – 14.1% 5.9% _____________________ (1) As of December 31, 2023, we had no Level 3 home loans. The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Market servicing costs 0.1% – 1.8% 0.2% 0.2% – 0.5% 0.3% Conditional prepayment rate 17.9% – 35.5% 22.4% 17.9% – 31.3% 22.7% Annual default rate 3.3% – 22.5% 4.7% 3.4% – 7.9% 4.9% Discount rate 8.8% – 8.8% 8.8% 7.8% – 7.8% 7.8% Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 10.9% – 15.3% 12.2% 15.4% – 21.9% 17.8% Annual default rate 0.3% – 3.7% 0.6% 0.3% – 4.3% 0.4% Discount rate 8.8% – 8.8% 8.8% 7.8% – 7.8% 7.8% Home loans Market servicing costs 0.1% – 0.2% 0.2% 0.1% – 0.1% 0.1% Conditional prepayment rate 5.6% – 24.0% 8.1% 4.9% – 11.0% 5.2% Annual default rate 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Discount rate 9.2% – 10.0% 9.3% 9.0% – 9.0% 9.0% The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 12.2% – 28.3% 14.8% 17.9% – 32.0% 19.9% Annual default rate 0.5% – 6.9% 1.4% 0.4% – 5.4% 1.1% Discount rate 5.8% – 15.5% 8.7% 4.8% – 10.5% 6.7% Residual interests classified as debt Conditional prepayment rate 12.3% – 12.6% 12.4% 17.2% – 18.1% 17.8% Annual default rate 0.7% – 0.7% 0.7% 0.6% – 0.8% 0.7% Discount rate 10.0% – 10.3% 10.0% 7.5% – 7.5% 7.5% December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 71.9% – 77.2% 76.3% 11.1% – 58.6% 46.3% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% - 95.0% 95.0% _____________________ (1) The aggregate amount of student loans we committed to fund was $89,369 as of December 31, 2023. The higher assumptions in the 2023 period reflect the home loan funding pipeline associated with our acquisition of Wyndham. See Note 14. Derivative Financial Instruments for the aggregate notional amount associated with IRLCs. Input Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Risk-free interest rate 1.6% 1.6% 0.8% – 0.8% Expected volatility 37.7% 37.7% 34.9% – 35.9% Fair value of common stock $12.06 $12.06 $16.99 – $23.21 Dividend yield —% —% —% |
Schedule of Sensitivity Analysis for Servicing Rights | The following table presents the estimated decrease to the fair value of our servicing rights if the key assumptions had each of the below adverse changes: December 31, 2023 2022 Market servicing costs 2.5 basis points increase $ (6,176) $ (10,395) 5.0 basis points increase (12,351) (20,807) Conditional prepayment rate 10% increase $ (5,189) $ (4,036) 20% increase (10,098) (7,833) Annual default rate 10% increase $ (480) $ (166) 20% increase (921) (331) Discount rate 100 basis points increase $ (4,674) $ (3,905) 200 basis points increase (9,054) (7,562) |
Schedule of Safeguarding Assets and Liabilities | The following table presents the significant digital assets held by our third-party custodians on behalf of our members: December 31, 2023 December 31, 2022 Bitcoin (BTC) $ 5,425 $ 44,346 Ethereum (ETH) 3,304 37,826 Ethereum Classic (ETC) 294 2,333 Litecoin (LTC) 198 2,492 Dogecoin (DOGE) 8 4,784 Cardano (ADA) (1) — 5,217 Solana (SOL) (1) — 1,588 All other (1)(2) 63 8,240 Digital assets safeguarding liability and corresponding safeguarding asset (3) $ 9,292 $ 106,826 ___________________ (1) Effective June 9, 2023, we ended support of these digital assets, as well as several others included in the “all other” category. (2) Includes 17 and 23 digital assets as of December 31, 2023 and December 31, 2022, respectively, none of which were determined to be individually significant. (3) Refer to Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards for additional information about our digital assets activities. |
Schedule of Assets and Liabilities not Measured at Fair Value | The following table summarizes the carrying values and estimated fair values, by level within the fair value hierarchy, of our assets and liabilities that are not measured at fair value on a recurring basis in the consolidated balance sheets: Fair Value Carrying Value Level 1 Level 2 Level 3 Total December 31, 2023 Assets Cash and cash equivalents (1) $ 3,085,020 $ 3,085,020 $ — $ — $ 3,085,020 Restricted cash and restricted cash equivalents (1) 530,558 530,558 — — 530,558 Loans at amortized cost (2) 836,159 — — 864,312 864,312 Other investments (3) 83,551 — 83,551 — 83,551 Total assets $ 4,535,288 $ 3,615,578 $ 83,551 $ 864,312 $ 4,563,441 Liabilities Deposits (4) $ 18,620,663 $ — $ 18,612,822 $ — $ 18,612,822 Debt (5) 5,113,775 955,306 4,024,516 — 4,979,822 Total liabilities $ 23,734,438 $ 955,306 $ 22,637,338 $ — $ 23,592,644 December 31, 2022 Assets Cash and cash equivalents (1) $ 1,421,907 $ 1,421,907 $ — $ — $ 1,421,907 Restricted cash and restricted cash equivalents (1) 424,395 424,395 — — 424,395 Loans at amortized cost (2) 307,957 — — 328,775 328,775 Other investments (3) 28,651 — 28,651 — 28,651 Total assets $ 2,182,910 $ 1,846,302 $ 28,651 $ 328,775 $ 2,203,728 Liabilities Deposits (4) $ 7,342,296 $ — $ 7,340,160 $ — $ 7,340,160 Debt (5) 5,396,740 826,242 4,219,574 — 5,045,816 Total liabilities $ 12,739,036 $ 826,242 $ 11,559,734 $ — $ 12,385,976 _____________________ (1) 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. (2) The fair value of our credit cards was determined using a discounted cash flow model with key inputs relating to weighted average lives, expected lifetime loss rates and discount rate. The fair value of our commercial and consumer banking and senior secured 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. (3) Other investments include FRB stock and FHLB stock, which are presented within other assets in the consolidated balance sheets. (4) The fair values of our deposits without contractually defined maturities (such as demand and savings deposits) and our noninterest-bearing deposits approximate their carrying values. The fair value of our time-based deposits was determined using a discounted cash flow model based on rates currently offered for deposits of similar remaining maturities. (5) The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt and revolving credit facility debt were classified as Level 2 based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was classified as Level 2 and 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. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation | Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the consolidated statements of operations and comprehensive loss: Year Ended December 31, 2023 2022 2021 Technology and product development $ 91,400 $ 77,674 $ 61,431 Sales and marketing 26,783 24,176 16,140 Cost of operations 10,662 17,837 11,743 General and administrative 142,371 186,307 149,697 Total $ 271,216 $ 305,994 $ 239,011 |
Schedule of Stock Option Activity | The following is a summary of stock option activity: Number of Weighted Average Weighted Average Outstanding as of January 1, 2023 18,749,679 $ 7.43 4.7 Exercised (796,883) 1.44 Expired (56,064) 6.67 Outstanding as of December 31, 2023 17,896,732 $ 7.70 3.8 Exercisable as of December 31, 2023 17,896,732 $ 7.70 3.8 |
Schedule of RSU Activity | The following table summarizes RSU activity: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2023 69,538,139 $ 9.07 Granted 38,399,214 6.51 Vested (1) (33,564,543) 8.42 Forfeited (9,493,314) 8.86 Outstanding as of December 31, 2023 64,879,496 $ 7.95 _____________________ (1) The total fair value, based on grant date fair value, of RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $282.6 million, $249.9 million, and $139.6 million, respectively. |
Schedule of PSU Activity | The following table summarizes PSU activity: Number of Weighted Average Grant Date Fair Value Outstanding as of January 1, 2023 19,563,747 $ 9.84 Granted 97,752 3.36 Forfeited (3,421,318) 7.52 Outstanding as of December 31, 2023 16,240,181 $ 10.29 |
Schedule of Valuation Inputs and Assumptions | The key inputs into our Black-Scholes Model valuation as of May 28, 2021, the final measurement date, were as follows: Input May 28, 2021 Risk-free interest rate 0.3 % Expected term (years) 2.9 Expected volatility 33.9 % Dividend yield — Exercise price $ 8.86 Fair value of Series H preferred stock $ 21.89 The following key unobservable assumptions were used in the fair value measurement of our loans: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Conditional prepayment rate 17.5% – 29.5% 23.2% 17.3% – 25.5% 19.1% Annual default rate 4.5% – 50.4% 4.8% 3.8% – 37.7% 4.4% Discount rate 5.5% – 8.1% 5.5% 5.4% – 8.3% 6.1% Student loans Conditional prepayment rate 8.4% – 12.6% 10.5% 16.3% – 21.8% 20.4% Annual default rate 0.4% – 6.4% 0.6% 0.2% – 4.5% 0.5% Discount rate 4.1% – 8.1% 4.3% 3.6% – 8.7% 4.0% Home loans (1) Conditional prepayment rate n/m n/m 2.0% – 10.2% 7.0% Annual default rate n/m n/m 0.1% – 1.3% 0.1% Discount rate n/m n/m 5.7% – 14.1% 5.9% _____________________ (1) As of December 31, 2023, we had no Level 3 home loans. The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Personal loans Market servicing costs 0.1% – 1.8% 0.2% 0.2% – 0.5% 0.3% Conditional prepayment rate 17.9% – 35.5% 22.4% 17.9% – 31.3% 22.7% Annual default rate 3.3% – 22.5% 4.7% 3.4% – 7.9% 4.9% Discount rate 8.8% – 8.8% 8.8% 7.8% – 7.8% 7.8% Student loans Market servicing costs 0.1% – 0.2% 0.1% 0.1% – 0.2% 0.1% Conditional prepayment rate 10.9% – 15.3% 12.2% 15.4% – 21.9% 17.8% Annual default rate 0.3% – 3.7% 0.6% 0.3% – 4.3% 0.4% Discount rate 8.8% – 8.8% 8.8% 7.8% – 7.8% 7.8% Home loans Market servicing costs 0.1% – 0.2% 0.2% 0.1% – 0.1% 0.1% Conditional prepayment rate 5.6% – 24.0% 8.1% 4.9% – 11.0% 5.2% Annual default rate 0.1% – 0.1% 0.1% 0.1% – 0.1% 0.1% Discount rate 9.2% – 10.0% 9.3% 9.0% – 9.0% 9.0% The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Residual investments Conditional prepayment rate 12.2% – 28.3% 14.8% 17.9% – 32.0% 19.9% Annual default rate 0.5% – 6.9% 1.4% 0.4% – 5.4% 1.1% Discount rate 5.8% – 15.5% 8.7% 4.8% – 10.5% 6.7% Residual interests classified as debt Conditional prepayment rate 12.3% – 12.6% 12.4% 17.2% – 18.1% 17.8% Annual default rate 0.7% – 0.7% 0.7% 0.6% – 0.8% 0.7% Discount rate 10.0% – 10.3% 10.0% 7.5% – 7.5% 7.5% December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average IRLCs Loan funding probability (1) 71.9% – 77.2% 76.3% 11.1% – 58.6% 46.3% Student loan commitments Loan funding probability (1) 95.0% – 95.0% 95.0% 95.0% - 95.0% 95.0% _____________________ (1) The aggregate amount of student loans we committed to fund was $89,369 as of December 31, 2023. The higher assumptions in the 2023 period reflect the home loan funding pipeline associated with our acquisition of Wyndham. See Note 14. Derivative Financial Instruments for the aggregate notional amount associated with IRLCs. Input Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 Risk-free interest rate 1.6% 1.6% 0.8% – 0.8% Expected volatility 37.7% 37.7% 34.9% – 35.9% Fair value of common stock $12.06 $12.06 $16.99 – $23.21 Dividend yield —% —% —% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Income Tax | Loss before income taxes consisted of the following: Year Ended December 31, 2023 2022 2021 Domestic $ (131,899) $ (299,751) $ (461,023) Foreign (1) (169,259) (18,970) (20,154) Loss before income taxes $ (301,158) $ (318,721) $ (481,177) _________________ (1) |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following: Year Ended December 31, 2023 2022 2021 Current tax expense: U.S. federal $ 5,842 $ — $ — U.S. state and local 8,640 4,275 1,481 Foreign 930 909 75 Total current tax expense 15,412 5,184 1,556 Deferred tax expense (benefit): U.S. state and local (115) 543 1,222 Foreign (15,713) (4,041) (18) Total deferred tax expense (benefit) (15,828) (3,498) 1,204 Income tax expense (benefit) $ (416) $ 1,686 $ 2,760 |
Schedule of Effective Income Tax Rate Reconciliation | The table below presents a reconciliation of the expected income tax benefit at the statutory federal income tax rate to the income tax expense (benefit) at the effective income tax rate: Year Ended December 31, 2023 2022 2021 Expected income tax benefit at federal statutory rate $ (63,243) $ (66,944) $ (101,047) Goodwill impairment 51,907 — — Valuation allowance for deferred tax assets 14,461 27,101 92,197 Non-deductible compensation expense (1) 15,579 23,100 23,838 State and local income taxes, net of federal benefit 6,725 4,591 2,096 Share-based compensation 554 19,811 (33,950) Research and development tax credits (22,249) (12,496) (7,067) Change in fair value of warrants — — 22,539 Other (4,150) 6,523 4,154 Income tax expense (benefit) $ (416) $ 1,686 $ 2,760 Effective tax rate 0.14 % (0.53) % (0.57) % _________________ (1) Reflects the impact of applying Section 162(m), which prohibits deduction of certain excess employee compensation to certain “covered employees”. |
Schedule of Unrecognized Tax Benefits Roll Forward | The table below presents a reconciliation of unrecognized tax benefits: Year Ended December 31, 2023 2022 2021 Unrecognized tax benefits at beginning of year $ 23,730 $ 6,972 $ 5,117 Gross increases – tax positions in prior period (1) 493 10,944 582 Gross decreases – tax positions in prior period (27) (98) — Gross increases – tax positions in current period 5,491 6,236 1,273 Lapse of statute of limitations — (324) — Unrecognized tax benefits at end of year $ 29,687 $ 23,730 $ 6,972 _________________ (1) |
Schedule of Deferred Tax Assets and Liabilities | The table below presents the significant components of the Company’s net deferred tax liabilities: December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 236,492 $ 287,473 Operating lease liabilities 21,554 24,009 Share-based compensation 24,730 27,571 Research and development credits 77,395 56,811 Accruals and other 59,364 32,130 Gross deferred tax assets 419,535 427,994 Valuation allowance (345,611) (318,410) Total deferred tax assets $ 73,924 $ 109,584 Deferred tax liabilities: Amortization $ (42,261) $ (101,971) Operating lease ROU assets (18,790) (20,597) Servicing rights (49,202) (41,168) Other (3,900) (2,330) Total deferred tax liabilities (114,153) (166,066) Deferred tax liabilities, net $ (40,229) $ (56,482) |
Summary of Deferred Tax Valuation Allowance | The table below details the activity of the deferred tax asset valuation allowance: Balance at Beginning of Period Additions Deductions Balance at End of Period Charged to Costs and Expenses Charged to Other Accounts Year Ended December 31, 2021 Deferred tax asset valuation allowance $ 141,101 $ 125,347 $ — $ — $ 266,448 Year Ended December 31, 2022 Deferred tax asset valuation allowance 266,448 37,536 14,426 — 318,410 Year Ended December 31, 2023 Deferred tax asset valuation allowance 318,410 27,201 — — 345,611 |
Summary of Operating Loss Carryforwards | The table below provides information about our net operating loss carryforwards by jurisdiction: December 31, 2023 Expiration U.S. federal (1) $ 47,943 2036 – 2037 633,125 Indefinite U.S. state (2) 879,425 2024 – 2042 85,254 Indefinite Foreign 35,411 2024 – 2043 80,417 Indefinite _____________________ (1) Federal net operating loss carryforwards generated in periods after December 31, 2017 are subject to an 80% limitation when used in future tax periods as a result of the TCJA passed in 2017. The CARES Act provided for the temporary elimination of the 80% limitation for any net operating loss utilization prior to January 1, 2021. (2) State conformity to either TCJA or the CARES Act, which was signed into law in March 2020, is established by each state’s local statutes and conformity to one act does not require conformity to both acts. |
Summary of Income Tax Examinations | The following are the major tax jurisdictions in which the Company operates and the earliest tax year subject to examination: Jurisdiction Tax year United States 2011 California 2012 New York State and City 2016 Argentina 2018 |
Commitments, Guarantees, Conc_2
Commitments, Guarantees, Concentrations and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Other Commitments | Amounts payable in future periods are as follows: December 31, 2023 2024 $ 85,807 2025 58,330 2026 46,280 2027 46,845 2028 43,237 Thereafter 389,830 Total $ 670,329 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Loss Per Share | The calculations of basic and diluted loss per share were as follows: Year Ended December 31, 2023 2022 2021 Numerator: Net loss $ (300,742) $ (320,407) $ (483,937) Less: Redeemable preferred stock dividends (40,425) (40,425) (40,426) Net loss attributable to common stockholders – basic and diluted $ (341,167) $ (360,832) $ (524,363) Denominator: Weighted average common stock outstanding – basic 945,024,160 900,886,113 526,730,261 Weighted average common stock outstanding – diluted 945,024,160 900,886,113 526,730,261 Loss per share – basic $ (0.36) $ (0.40) $ (1.00) Loss per share – diluted $ (0.36) $ (0.40) $ (1.00) |
Schedule of Antidilutive Securities Excluded from Computation of Loss 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 the year. Year Ended December 31, 2023 2022 2021 Common stock options 17,896,732 18,749,679 21,171,147 Common stock warrants 12,170,990 12,170,990 12,170,990 Unvested RSUs (1) 64,879,496 69,538,139 48,687,524 Unvested PSUs 16,240,181 19,563,747 22,970,396 Convertible notes (2) 49,610,631 53,538,000 53,538,000 Contingent common stock (3) 45,859 6,305,595 — ____________________ (1) As of December 31, 2023, includes DSUs granted to non-employee directors. See Note 16. Share-Based Compensation for additional information. (2) Represents the shares of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the date indicated. See Note 1. Organization, Summary of Significant Accounting Policies and New Accounting Standards and Note 12. Debt for additional information. (3) As of December 31, 2023 and December 31, 2022, includes contingently returnable common stock in connection with the Technisys Merger during 2022, which consists of shares held in escrow pending resolution of outstanding indemnification claims by SoFi. These shares were issued in 2022 and partially released in 2023. See Note 2. Business Combinations |
Business Segment and Geograph_2
Business Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment: Year Ended December 31, 2023 Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Net revenue Net interest income (expense) $ 960,773 $ 1,514 $ 334,847 $ 1,297,134 $ (35,394) $ 1,261,740 Noninterest income (expense) (2) 409,848 350,826 101,668 862,342 (1,293) 861,049 Total net revenue (loss) $ 1,370,621 $ 352,340 $ 436,515 $ 2,159,476 $ (36,687) $ 2,122,789 Servicing rights – change in valuation inputs or assumptions (3) (34,700) — — (34,700) Residual interests classified as debt – change in valuation inputs or assumptions (4) 425 — — 425 Directly attributable expenses (513,073) (257,554) (436,777) (1,207,404) Contribution profit (loss) $ 823,273 $ 94,786 $ (262) $ 917,797 Year Ended December 31, 2022 Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Net revenue Net interest income (expense) $ 531,480 $ — $ 92,574 $ 624,054 $ (39,958) $ 584,096 Noninterest income (expense) (2) 608,511 315,133 75,102 998,746 (9,307) 989,439 Total net revenue (loss) $ 1,139,991 $ 315,133 $ 167,676 $ 1,622,800 $ (49,265) $ 1,573,535 Servicing rights – change in valuation inputs or assumptions (3) (39,651) — — (39,651) Residual interests classified as debt – change in valuation inputs or assumptions (4) 6,608 — — 6,608 Directly attributable expenses (442,945) (238,620) (367,102) (1,048,667) Contribution profit (loss) $ 664,003 $ 76,513 $ (199,426) $ 541,090 Year Ended December 31, 2021 Lending Technology Platform (1) Financial Services (1) Reportable Segments Total Corporate/Other (1) Total Net revenue Net interest income (expense) $ 258,102 $ (29) $ 3,765 $ 261,838 $ (9,594) $ 252,244 Noninterest income (2) 480,221 194,915 54,313 729,449 3,179 732,628 Total net revenue (loss) $ 738,323 $ 194,886 $ 58,078 $ 991,287 $ (6,415) $ 984,872 Servicing rights – change in valuation inputs or assumptions (3) 2,651 — — 2,651 Residual interests classified as debt – change in valuation inputs or assumptions (4) 22,802 — — 22,802 Directly attributable expenses (364,169) (130,439) (192,996) (687,604) Contribution profit (loss) $ 399,607 $ 64,447 $ (134,918) $ 329,136 _____________________ (1) Within the Technology Platform segment, intercompany fees were $22,199, $7,604 and $1,863 for the years ended December 31, 2023, 2022 and 2021, respectively. The equal and offsetting intercompany expenses are reflected within all three segments’ directly attributable expenses, as well as within expenses not allocated to segments. The intercompany revenues and expenses are eliminated in consolidation. The revenues are eliminated within Corporate/Other and the expenses are adjusted in our reconciliation of directly attributable expenses below. (2) Refer to Note 3. Revenue for a reconciliation of revenue from contracts with customers to total noninterest income (expense). (3) Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment, default rates and discount rates. This non-cash change, which is recorded within noninterest income in the consolidated statements of operations and comprehensive 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, 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 consolidated statements of operations and comprehensive 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. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources. Year Ended December 31, 2023 2022 2021 Reportable segments total contribution profit $ 917,797 $ 541,090 $ 329,136 Corporate/Other total net loss (36,687) (49,265) (6,415) Intercompany expenses 22,199 7,604 1,863 Servicing rights – change in valuation inputs or assumptions 34,700 39,651 (2,651) Residual interests classified as debt – change in valuation inputs or assumptions (425) (6,608) (22,802) Expenses not allocated to segments: Share-based compensation expense (271,216) (305,994) (239,011) Employee-related costs (1) (250,326) (184,764) (143,847) Depreciation and amortization expense (201,416) (151,360) (101,568) Goodwill impairment expense (247,174) — — Fair value change of warrant liabilities — — (107,328) Special payment (2) — — (21,181) Other corporate and unallocated expenses (3) (268,610) (209,075) (167,373) Loss before income taxes $ (301,158) $ (318,721) $ (481,177) _____________________ (1) Includes compensation, benefits, restructuring charges, 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 a special payment to the Series 1 preferred stockholders in connection with the Business Combination. (3) |
Schedule of Revenue from External Customers by Geographic Areas | The following tables present total net revenue from external customers and total assets attributed to the United States and to all foreign countries in total in which we operate. We attribute total net revenue and total assets based on the country of domicile of the legal entity. No individual foreign country had material total net revenue during any of the years presented. Our long-lived assets as of the dates indicated were not considered by management to be significant relative to total assets. The majority of our long-lived assets were located in the United States as of the dates indicated. Year Ended December 31, 2023 2022 2021 United States $ 2,028,112 $ 1,504,680 $ 981,705 All foreign countries 94,677 68,855 3,167 Total net revenue $ 2,122,789 $ 1,573,535 $ 984,872 |
Schedule of Long-Lived Assets by Geographic Areas | December 31, 2023 2022 United States $ 29,133,417 $ 17,921,296 All foreign countries 941,441 1,086,379 Total assets $ 30,074,858 $ 19,007,675 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 are presented below: December 31, 2023 December 31, 2022 ($ in thousands) Amount Ratio Amount Ratio Required Minimum (1) Well-Capitalized Minimum (2) SoFi Bank CET1 risk-based capital $ 3,331,616 17.3 % $ 1,162,024 14.6 % 7.0 % 6.5 % Tier 1 risk-based capital 3,331,616 17.3 % 1,162,024 14.6 % 8.5 % 8.0 % Total risk-based capital 3,386,105 17.6 % 1,202,429 15.1 % 10.5 % 10.0 % Tier 1 leverage 3,331,616 15.0 % 1,162,024 15.3 % 4.0 % 5.0 % Risk-weighted assets 19,244,841 7,972,956 Quarterly adjusted average assets 22,273,285 7,615,481 SoFi Technologies CET1 risk-based capital $ 3,439,969 15.0 % $ 3,188,341 20.3 % 7.0 % n/a Tier 1 risk-based capital 3,439,969 15.0 % 3,188,341 20.3 % 8.5 % n/a Total risk-based capital 3,494,458 15.3 % 3,228,746 20.6 % 10.5 % n/a Tier 1 leverage 3,439,969 12.8 % 3,188,341 21.8 % 4.0 % n/a Risk-weighted assets 22,883,185 15,695,217 Quarterly adjusted average assets 26,782,318 14,592,551 ___________________ (1) Required minimums presented for risk-based capital ratios include the required capital conservation buffer. (2) The well-capitalized minimum measure is applicable at the bank level only. |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | SoFi Technologies, Inc. Condensed Balance Sheets (Parent Company Only) ( In Thousands, Except for Share Data ) December 31, 2023 2022 Assets Cash and cash equivalents $ 201 $ 201 Intercompany receivables 9,245 — Investments in subsidiaries 6,407,596 5,802,861 Goodwill 590,539 713,217 Intangible assets 180,240 213,328 Other assets 250 471 Total assets $ 7,188,071 $ 6,730,078 Liabilities, temporary equity and permanent equity Liabilities: Accounts payable, accruals and other liabilities $ 50,296 $ 21,019 Debt 1,582,789 1,180,583 Total liabilities 1,633,085 1,201,602 Temporary equity (1) : Redeemable preferred stock, $0.00 par value: 100,000,000 and 100,000,000 shares authorized; 3,234,000 and 3,234,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively 320,374 320,374 Permanent equity: Common stock, $0.00 par value: 3,100,000,000 and 3,100,000,000 shares authorized; 975,861,793 and 933,896,120 shares issued and outstanding as of December 31, 2023 and 2022, respectively (2) 97 93 Additional paid-in capital 7,039,987 6,719,826 Accumulated other comprehensive loss (1,209) (8,296) Accumulated deficit (1,804,263) (1,503,521) Total permanent equity 5,234,612 5,208,102 Total liabilities, temporary equity and permanent equity $ 7,188,071 $ 6,730,078 _______________ (1) Redemption amount is $323,400 as of December 31, 2023 and 2022. (2) |
Condensed Statements of Operations and Comprehensive Loss | SoFi Technologies, Inc. Condensed Statements of Operations and Comprehensive Loss (Parent Company Only) ( In Thousands ) Year Ended December 31, 2023 2022 2021 Interest income $ — $ — $ 6,279 Interest expense 28,258 5,075 14,926 Net interest expense (28,258) (5,075) (8,647) Noninterest income 14,832 — 2,617 Total net revenue (loss) (13,426) (5,075) (6,030) Noninterest expense 169,971 42,114 278,697 Loss before income taxes (183,397) (47,189) (284,727) Income tax benefit 10,696 — 5,294 Loss before equity in loss of subsidiaries (172,701) (47,189) (279,433) Equity in loss of subsidiaries (128,041) (273,218) (204,504) Net loss $ (300,742) $ (320,407) $ (483,937) Other comprehensive income (loss) Unrealized gains (losses) on available-for-sale debt securities, net 6,410 (7,260) (1,351) Foreign currency translation adjustments, net 677 435 46 Total other comprehensive income (loss) 7,087 (6,825) (1,305) Comprehensive loss $ (293,655) $ (327,232) $ (485,242) |
Condensed Statements of Cash Flows | SoFi Technologies, Inc. Condensed Statements of Cash Flows (Parent Company Only) (In Thousands) Year Ended December 31, 2023 2022 2021 Operating activities Net cash (used in) provided by operating activities $ (42,618) $ 290,298 $ (136,134) Investing activities Changes in investments in subsidiaries $ 79,185 $ (284,295) $ (3,231,314) Issuances of notes to subsidiaries — — (312) Proceeds from securitization investments — — 106,994 Proceeds from non-securitization investments — — 107,534 Other investing activities — — 13,122 Net cash provided by (used in) investing activities $ 79,185 $ (284,295) $ (3,003,976) Financing activities Net change in debt facilities $ — $ — $ 144,339 Proceeds from other debt issuances — — 1,010,728 Repayment of other debt — — (250,000) Taxes paid related to net share settlement of share-based awards (15,300) (8,983) (42,644) Payment of redeemable preferred stock dividends (20,213) — — Redemptions of redeemable common and preferred stock — — (282,859) Proceeds from Business Combination and PIPE Investment — — 1,989,851 Proceeds from warrant exercises — — 95,047 Purchase of capped calls — — (113,760) Other financing activities (1,054) 2,610 (4,605) Net cash (used in) provided by financing activities $ (36,567) $ (6,373) $ 2,546,097 Effect of exchange rates on cash and cash equivalents — 571 46 Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents $ — $ 201 $ (593,967) Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 201 — 593,967 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 201 $ 201 $ — |
Organization, Summary of Sign_3
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Organization and Consolidation of VIEs (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
VIE ownership interest threshold to determine significant interest | 10% |
Organization, Summary of Sign_4
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Loans and Servicing Rights (Details) | 12 Months Ended |
Dec. 31, 2023 class | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Amortization period of deferred loan origination fees | 12 months |
Number of classes of servicing assets | 3 |
Organization, Summary of Sign_5
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Property, Equipment, Software, Leases, and Safeguarding Asset and Liability (Details) | Dec. 31, 2023 custodian |
Property, Plant and Equipment [Line Items] | |
Number of third party custodians held by platform operator of safeguarding assets | 1 |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 1 year |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Finance lease ROU assets | |
Property, Plant and Equipment [Line Items] | |
Right of use asset estimated useful life | 7 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years 6 months |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Organization, Summary of Sign_6
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Borrowing and Financing Costs (Details) - Convertible senior notes - Convertible Debt $ in Millions | Oct. 04, 2021 USD ($) day | Dec. 31, 2023 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Face amount | $ 1,200 | $ 1,100 |
Convertible debt, threshold, trading days preceding maturity date (in days) | day | 30 | |
Debt repurchased face amount | $ 88 |
Organization, Summary of Sign_7
Organization, Summary of Significant Accounting Policies and New Accounting Standards - Advertising, Sales and Marketing, Restructuring, Compensation and Benefits and Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising expenses | $ 284,176 | $ 256,125 | $ 183,106 |
Restructuring charges | 12,749 | ||
Compensation and benefits, inclusive of share-based compensation expense | $ 894,720 | $ 830,298 | $ 608,505 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) shares | Feb. 02, 2022 USD ($) | May 28, 2021 USD ($) $ / shares shares | Jan. 07, 2021 USD ($) | Sep. 30, 2022 USD ($) shares | Sep. 30, 2023 shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Mar. 03, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||||
Gross cash consideration from recapitalization | $ 764,800,000 | ||||||||
Value of shares redeemed and canceled | $ 150,000,000 | ||||||||
Number of shares issued to stockholder | shares | 122,500,000 | ||||||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 10 | ||||||||
Proceeds from common stock issuances | $ 1,225,000,000 | ||||||||
Conversion ratio | 1 | ||||||||
Exchange ratio | 1.7428 | ||||||||
Series 1 Redeemable Preferred Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Special distribution | $ 21,200,000 | $ 21,200,000 | |||||||
Equity issuance costs | $ 27,500,000 | ||||||||
Golden Pacific Bancorp, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase consideration | $ 22,300,000 | ||||||||
Initial paid-in capital requirement | 750,000,000 | ||||||||
Holdback amount | 3,300,000 | ||||||||
Golden Pacific Bancorp, Inc. | Indemnification Agreement | |||||||||
Business Acquisition [Line Items] | |||||||||
Holdback amount | $ 600,000 | ||||||||
Holdback amount released to acquiree shareholders | $ 0 | ||||||||
Technisys S.A. | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase consideration | $ 913,764,000 | ||||||||
Purchase consideration | $ 915,400,000 | ||||||||
Reduction to equity consideration (in shares) | shares | 155,794 | ||||||||
Goodwill, measurement period adjustments | $ 1,665,000 | ||||||||
Adjustment to reduce initial consideration transferred amount | $ 1,665,000 | ||||||||
Equity consideration previously held in escrow released to former shareholders (in shares) | shares | 442,274 | ||||||||
Payments to settle vested employee performance awards | $ 19,656,000 | $ 17,641,000 | |||||||
Technisys S.A. | Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Shares held in escrow, released (in shares) | shares | 6,259,736 | ||||||||
Shares held in escrow (in shares) | shares | 6,305,595 | 45,859 |
Business Combinations - Schedul
Business Combinations - Schedule of Purchase Consideration (Details) - Technisys S.A. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Business Combination, Consideration Transferred [Abstract] | ||
Fair value of common stock issued | $ 873,377 | |
Amounts payable to settle vested employee performance awards | 37,297 | |
Fair value of awards assumed | 2,855 | |
Settlement of pre-combination transactions between acquirer and acquiree | 235 | |
Total purchase consideration | $ 913,764 | |
Common Stock | ||
Business Combination, Consideration Transferred [Abstract] | ||
Consideration transferred, shares issuable (in shares) | 81,700,318 | |
Shares held in escrow (in shares) | 6,305,595 | 45,859 |
Business Combinations - Sched_2
Business Combinations - Schedule of Pro-forma Information (Details) - Technisys S.A. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Total net revenue | $ 1,584,439 | $ 1,055,219 |
Net loss | $ (311,512) | $ (512,785) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable associated with revenue from contracts with customer, net | $ 60,466 | $ 61,226 |
Revenue - Schedule of Revenues
Revenue - Schedule of Revenues (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 421,454,000 | $ 377,096,000 | $ 247,718,000 |
Loan origination, sales, and securitizations | 371,812,000 | 565,372,000 | 482,764,000 |
Servicing | 37,328,000 | 43,547,000 | (2,281,000) |
Other | 30,455,000 | 3,424,000 | 4,427,000 |
Total other sources of revenue | 439,595,000 | 612,343,000 | 484,910,000 |
Total noninterest income | 861,049,000 | 989,439,000 | 732,628,000 |
Deferred revenue | 5,718,000 | 10,028,000 | |
Deferred revenue, amount recognized | 8,327,000 | 7,773,000 | 685,000 |
Lending | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 0 | 0 | 0 |
Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 97,464,000 | 71,134,000 | 54,666,000 |
Technology Platform | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 323,990,000 | 305,962,000 | 193,052,000 |
Referrals | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 38,443,000 | 36,052,000 | 15,750,000 |
Interchange | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 35,247,000 | 17,391,000 | 10,642,000 |
Brokerage | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 21,127,000 | 15,446,000 | 22,733,000 |
Other | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 2,647,000 | 2,245,000 | 5,541,000 |
Technology services | Technology Platform | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | 319,845,000 | 299,379,000 | 191,847,000 |
Other | Technology Platform | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue from contracts with customers | $ 4,145,000 | $ 6,583,000 | $ 1,205,000 |
Loans - Schedule of Loan Portfo
Loans - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | $ 15,396,771 | $ 13,557,074 |
Loans held for investment, at fair value | 6,725,484 | 0 |
Total loans held for investment, at amortized cost | 836,159 | 307,957 |
Total loans held for investment | 7,561,643 | 307,957 |
Total loans | 22,958,414 | 13,865,031 |
Variable Interest Entity, Primary Beneficiary | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 502,757 | 931,701 |
Loans held for investment, at fair value | 221,461 | 0 |
Senior secured loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | 446,463 | 0 |
Commercial and consumer banking | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | 117,068 | 98,793 |
Personal loans | Personal Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 15,330,573 | 8,610,434 |
Personal loans | Personal Loans | Variable Interest Entity, Primary Beneficiary | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 502,757 | 663,004 |
Student loans | Student Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 0 | 4,877,177 |
Loans held for investment, at fair value | 6,725,484 | 0 |
Covered by financial guarantees | 2,459,103 | |
Student loans | Student Loans | Variable Interest Entity, Primary Beneficiary | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 268,697 | |
Loans held for investment, at fair value | 221,461 | |
Home loans | Home Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale, at fair value | 66,198 | 69,463 |
Credit card | Credit card | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | 272,628 | 209,164 |
Commercial real estate | Commercial and consumer banking | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | 106,326 | 88,652 |
Commercial and industrial | Commercial and consumer banking | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | 6,075 | 7,179 |
Residential real estate and other consumer | Commercial and consumer banking | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total loans held for investment, at amortized cost | $ 4,667 | $ 2,962 |
Loans - Schedule of Loans Measu
Loans - Schedule of Loans Measured at Fair Value (Details) - Fair Value, Recurring - Fair Value - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | $ 21,011,621 | $ 13,155,622 |
Accumulated interest | 148,990 | 75,257 |
Cumulative fair value adjustments | 961,644 | 326,195 |
Total fair value of loans | 22,122,255 | 13,557,074 |
Fair value of loans 90 days or more delinquent | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 90,532 | 34,424 |
Accumulated interest | 4,216 | 1,511 |
Cumulative fair value adjustments | (75,460) | (28,354) |
Total fair value of loans | 19,288 | 7,581 |
Personal loans | Personal Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 14,498,629 | 8,283,400 |
Accumulated interest | 114,541 | 55,673 |
Cumulative fair value adjustments | 717,403 | 271,361 |
Total fair value of loans | 15,330,573 | 8,610,434 |
Personal loans | Fair value of loans 90 days or more delinquent | Personal Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 81,591 | 27,989 |
Accumulated interest | 4,023 | 1,207 |
Cumulative fair value adjustments | (70,191) | (25,022) |
Total fair value of loans | 15,423 | 4,174 |
Student loans | Student Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 6,445,586 | 4,794,517 |
Accumulated interest | 34,357 | 19,433 |
Cumulative fair value adjustments | 245,541 | 63,227 |
Total fair value of loans | 6,725,484 | 4,877,177 |
Student loans | Fair value of loans 90 days or more delinquent | Student Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 8,446 | 6,435 |
Accumulated interest | 187 | 304 |
Cumulative fair value adjustments | (5,021) | (3,332) |
Total fair value of loans | 3,612 | 3,407 |
Home loans | Home Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 67,406 | 77,705 |
Accumulated interest | 92 | 151 |
Cumulative fair value adjustments | (1,300) | (8,393) |
Total fair value of loans | 66,198 | 69,463 |
Home loans | Fair value of loans 90 days or more delinquent | Home Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Unpaid principal balance | 495 | 0 |
Accumulated interest | 6 | 0 |
Cumulative fair value adjustments | (248) | 0 |
Total fair value of loans | $ 253 | $ 0 |
Loans - Schedule of Loan Securi
Loans - Schedule of Loan Securitizations Accounted for as Sales and Whole Loan Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Personal Loans | Other asset-backed securities | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Cash | $ 359,927 | $ 1,050,062 | |
Securitization investments | 18,985 | 55,491 | |
Servicing assets recognized | 15,975 | 6,003 | |
Repurchase liabilities recognized | (113) | 0 | |
Total consideration | 394,774 | 1,111,556 | |
Aggregate unpaid principal balance and accrued interest of loans sold | 375,770 | 1,054,171 | |
Realized gain (loss) | 19,004 | 57,385 | |
Personal Loans | Whole loans | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Cash | 567,904 | $ 3,016,740 | 3,373,655 |
Servicing assets recognized | 30,168 | 21,925 | 21,811 |
Repurchase liabilities recognized | (2,069) | (7,351) | (8,168) |
Total consideration | 596,003 | 3,031,314 | 3,387,298 |
Aggregate unpaid principal balance and accrued interest of loans sold | 567,003 | 2,924,567 | 3,253,645 |
Realized gain (loss) | 29,000 | 106,747 | 133,653 |
Student Loans | Other asset-backed securities | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Cash | 0 | 1,187,714 | |
Securitization investments | 0 | 62,783 | |
Servicing assets recognized | 0 | 36,948 | |
Total consideration | 0 | 1,287,445 | |
Aggregate unpaid principal balance and accrued interest of loans sold | 0 | 1,227,379 | |
Realized gain (loss) | 0 | 60,066 | |
Student Loans | Whole loans | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Cash | 98,624 | 883,859 | 1,676,892 |
Servicing assets recognized | 2,792 | 9,275 | 15,526 |
Repurchase liabilities recognized | (16) | (134) | (300) |
Total consideration | 101,400 | 893,000 | 1,692,118 |
Aggregate unpaid principal balance and accrued interest of loans sold | 99,916 | 881,922 | 1,635,280 |
Realized gain (loss) | 1,484 | 11,078 | 56,838 |
Home Loans | Whole loans | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Cash | 1,022,600 | 1,057,596 | 2,989,813 |
Servicing assets recognized | 10,184 | 13,926 | 31,294 |
Repurchase liabilities recognized | (1,765) | (1,158) | (3,288) |
Total consideration | 1,031,019 | 1,070,364 | 3,017,819 |
Aggregate unpaid principal balance and accrued interest of loans sold | 1,029,623 | 1,095,882 | 2,935,343 |
Realized gain (loss) | $ 1,396 | $ (25,518) | $ 82,476 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Personal Loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Deconsolidation of debt | $ 70.6 | |
Student Loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Deconsolidation of debt | $ 100.3 | $ 126 |
Loans - Schedule of Unpaid Prin
Loans - Schedule of Unpaid Principal Balances of Transferred Loans and Cash Flows Received (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Contractually Specified Servicing Fee Income, Statement Of Income Or Comprehensive Income, Extensible Enumeration, Not Disclosed Flag | Servicing fees collected from transferred loans | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | $ 13,965,378 | $ 15,715,938 | |
Servicing fees collected from transferred loans | 62,508 | 81,147 | $ 89,827 |
Charge-offs, net of recoveries, of transferred loans | 209,285 | 127,231 | 126,892 |
Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 252,018 | 241,319 | |
Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | Financial Asset, Equal To Or Greater Than 30 Days Past Due | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 137,995 | 128,150 | |
Personal Loans | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 2,223,785 | 2,995,601 | |
Servicing fees collected from transferred loans | 20,577 | 33,051 | 34,421 |
Charge-offs, net of recoveries, of transferred loans | 167,643 | 93,095 | 102,217 |
Personal Loans | Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 90,582 | 108,991 | |
Personal Loans | Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | Financial Asset, Equal To Or Greater Than 30 Days Past Due | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 52,813 | 64,654 | |
Student Loans | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 6,148,800 | 7,586,031 | |
Servicing fees collected from transferred loans | 27,401 | 35,203 | 46,657 |
Charge-offs, net of recoveries, of transferred loans | 41,642 | 34,136 | 24,675 |
Student Loans | Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 137,243 | 115,818 | |
Student Loans | Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | Financial Asset, Equal To Or Greater Than 30 Days Past Due | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 60,989 | 46,986 | |
Home Loans | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 5,592,793 | 5,134,306 | |
Servicing fees collected from transferred loans | 14,530 | 12,893 | $ 8,749 |
Home Loans | Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | 24,193 | 16,510 | |
Home Loans | Loans in delinquency | Variable Interest Entity, Not Primary Beneficiary | Financial Asset, Equal To Or Greater Than 30 Days Past Due | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Total transferred loans serviced | $ 24,193 | $ 16,510 |
Loans - Schedule of Loans by St
Loans - Schedule of Loans by Status (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | |||
Loans held for investment, allowance for credit loss | $ 54,695,000 | $ 40,788,000 | |
Total loans held for investment, at amortized cost | 836,159,000 | 307,957,000 | |
Fair Value | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 884,390,000 | 344,106,000 | |
Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 861,868,000 | 325,311,000 | |
30–59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 5,452,000 | 4,670,000 | |
60–89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,829,000 | 3,627,000 | |
≥ 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 12,241,000 | 10,498,000 | |
Total Delinquent Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 22,522,000 | 18,795,000 | |
Senior secured loans | |||
Financing Receivable, Past Due [Line Items] | |||
Accumulated accrued interest | 730,000 | ||
Total loans held for investment, at amortized cost | 446,463,000 | 0 | |
Senior secured loans | Fair Value | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 445,733,000 | ||
Senior secured loans | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 445,733,000 | ||
Senior secured loans | 30–59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | ||
Senior secured loans | 60–89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | ||
Senior secured loans | ≥ 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | ||
Senior secured loans | Total Delinquent Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | ||
Credit card | Credit card | |||
Financing Receivable, Past Due [Line Items] | |||
Loans on nonaccrual status | 0 | 0 | |
Loans held for investment, allowance for credit loss | 52,385,000 | 39,110,000 | $ 7,037,000 |
Accumulated accrued interest | 5,288,000 | 4,315,000 | |
Total loans held for investment, at amortized cost | 272,628,000 | 209,164,000 | |
Credit card | Credit card | Fair Value | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 319,694,000 | 243,959,000 | |
Credit card | Credit card | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 297,612,000 | 225,165,000 | |
Credit card | Credit card | 30–59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 5,451,000 | 4,670,000 | |
Credit card | Credit card | 60–89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,829,000 | 3,626,000 | |
Credit card | Credit card | ≥ 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 11,802,000 | 10,498,000 | |
Credit card | Credit card | Total Delinquent Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 22,082,000 | 18,794,000 | |
Commercial and consumer banking | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 118,290,000 | ||
Loans held for investment, allowance for credit loss | 2,310,000 | 1,678,000 | $ 0 |
Accumulated accrued interest | 415,000 | 324,000 | |
Total loans held for investment, at amortized cost | 117,068,000 | 98,793,000 | |
Revolving Loans | 673,000 | ||
Commercial and consumer banking | Fair Value | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 118,963,000 | 100,147,000 | |
Commercial and consumer banking | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 118,523,000 | 100,146,000 | |
Commercial and consumer banking | 30–59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,000 | 0 | |
Commercial and consumer banking | 60–89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | 1,000 | |
Commercial and consumer banking | ≥ 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 439,000 | 0 | |
Commercial and consumer banking | Total Delinquent Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 440,000 | 1,000 | |
Commercial and consumer banking | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 107,571,000 | ||
Total loans held for investment, at amortized cost | 106,326,000 | 88,652,000 | |
Revolving Loans | 186,000 | ||
Commercial and consumer banking | Commercial real estate | Fair Value | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 107,757,000 | 89,544,000 | |
Commercial and consumer banking | Commercial real estate | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 107,757,000 | 89,544,000 | |
Commercial and consumer banking | Commercial real estate | 30–59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | 0 | |
Commercial and consumer banking | Commercial real estate | 60–89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | 0 | |
Commercial and consumer banking | Commercial real estate | ≥ 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | 0 | |
Commercial and consumer banking | Commercial real estate | Total Delinquent Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | 0 | |
Commercial and consumer banking | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 6,249,000 | ||
Total loans held for investment, at amortized cost | 6,075,000 | 7,179,000 | |
Revolving Loans | 299,000 | ||
Commercial and consumer banking | Commercial and industrial | Fair Value | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 6,548,000 | 7,637,000 | |
Commercial and consumer banking | Commercial and industrial | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 6,108,000 | 7,636,000 | |
Commercial and consumer banking | Commercial and industrial | 30–59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 1,000 | 0 | |
Commercial and consumer banking | Commercial and industrial | 60–89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | 1,000 | |
Commercial and consumer banking | Commercial and industrial | ≥ 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 439,000 | 0 | |
Commercial and consumer banking | Commercial and industrial | Total Delinquent Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 440,000 | 1,000 | |
Commercial and consumer banking | Residential real estate and other consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,470,000 | ||
Total loans held for investment, at amortized cost | 4,667,000 | 2,962,000 | |
Revolving Loans | 188,000 | ||
Commercial and consumer banking | Residential real estate and other consumer | Fair Value | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,658,000 | 2,966,000 | |
Commercial and consumer banking | Residential real estate and other consumer | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 4,658,000 | 2,966,000 | |
Commercial and consumer banking | Residential real estate and other consumer | 30–59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | 0 | |
Commercial and consumer banking | Residential real estate and other consumer | 60–89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | 0 | |
Commercial and consumer banking | Residential real estate and other consumer | ≥ 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | 0 | 0 | |
Commercial and consumer banking | Residential real estate and other consumer | Total Delinquent Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total loans | $ 0 | $ 0 |
Loans - Internal Risk Tier Cate
Loans - Internal Risk Tier Categories (Details) - Total Loans - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 884,390 | $ 344,106 |
Credit card | Credit card | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 319,694 | 243,959 |
Credit card | Credit card | ≥ 800 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 29,269 | 14,421 |
Credit card | Credit card | 780 – 799 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 19,350 | 11,327 |
Credit card | Credit card | 760 – 779 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 20,740 | 12,179 |
Credit card | Credit card | 740 – 759 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 23,361 | 14,501 |
Credit card | Credit card | 720 – 739 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 28,621 | 19,343 |
Credit card | Credit card | 700 – 719 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 35,528 | 26,239 |
Credit card | Credit card | 680 – 699 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 38,289 | 31,543 |
Credit card | Credit card | 660 – 679 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 35,443 | 31,958 |
Credit card | Credit card | 640 – 659 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 25,836 | 25,959 |
Credit card | Credit card | 620 – 639 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 15,569 | 15,566 |
Credit card | Credit card | 600 – 619 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 10,063 | 8,968 |
Credit card | Credit card | ≤ 599 | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 37,625 | $ 31,955 |
Loans - Risk Categories of Loan
Loans - Risk Categories of Loans by Class of Loans (Details) - Commercial and consumer banking $ in Thousands | Dec. 31, 2023 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | $ 26,379 |
2022 | 38,452 |
2021 | 7,284 |
2020 | 4,613 |
2019 | 9,659 |
Prior | 31,903 |
Total Term Loans | 118,290 |
Revolving Loans | 673 |
Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 24,434 |
2022 | 38,452 |
2021 | 7,284 |
2020 | 4,550 |
2019 | 9,547 |
Prior | 23,304 |
Total Term Loans | 107,571 |
Revolving Loans | 186 |
Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 100 |
2022 | 0 |
2021 | 0 |
2020 | 63 |
2019 | 112 |
Prior | 5,974 |
Total Term Loans | 6,249 |
Revolving Loans | 299 |
Residential real estate and other consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 1,845 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 2,625 |
Total Term Loans | 4,470 |
Revolving Loans | 188 |
Pass | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 23,200 |
2022 | 29,761 |
2021 | 5,636 |
2020 | 4,550 |
2019 | 9,332 |
Prior | 17,316 |
Total Term Loans | 89,795 |
Revolving Loans | 186 |
Pass | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 54 |
2022 | 0 |
2021 | 0 |
2020 | 63 |
2019 | 96 |
Prior | 4,941 |
Total Term Loans | 5,154 |
Revolving Loans | 299 |
Pass | Residential real estate and other consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 1,845 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 2,585 |
Total Term Loans | 4,430 |
Revolving Loans | 188 |
Watch | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 1,234 |
2022 | 8,691 |
2021 | 1,648 |
2020 | 0 |
2019 | 215 |
Prior | 2,749 |
Total Term Loans | 14,537 |
Revolving Loans | 0 |
Watch | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 46 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 16 |
Prior | 3 |
Total Term Loans | 65 |
Revolving Loans | 0 |
Watch | Residential real estate and other consumer | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 40 |
Total Term Loans | 40 |
Revolving Loans | 0 |
Special mention | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 1,703 |
Total Term Loans | 1,703 |
Revolving Loans | 0 |
Substandard | Commercial real estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 1,536 |
Total Term Loans | 1,536 |
Revolving Loans | 0 |
Substandard | Commercial and industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 1,030 |
Total Term Loans | 1,030 |
Revolving Loans | $ 0 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Schedule of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 40,788 | ||
Provision for credit losses | 54,945 | $ 54,332 | $ 7,573 |
Ending balance | 54,695 | 40,788 | |
Accounts Receivable | |||
Beginning balance | 2,785 | 2,292 | |
Provision for credit losses | 773 | 586 | |
Write-offs charged against the allowance | (1,721) | (93) | |
Ending balance | 1,837 | 2,785 | 2,292 |
Recovery of previously reserved related to accounts receivable | 1,252 | 2,912 | |
Credit card | Credit card | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 39,110 | 7,037 | |
Provision for credit losses | 54,267 | 53,030 | |
Allowance for PCD loans | 0 | ||
Write-offs charged against the allowance | (40,992) | (20,957) | |
Ending balance | 52,385 | 39,110 | 7,037 |
Accounts Receivable | |||
Recovery of previously reserved related to credit cards | 2,895 | 0 | |
Commercial and consumer banking | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,678 | 0 | |
Provision for credit losses | 678 | 1,302 | |
Allowance for PCD loans | 382 | ||
Write-offs charged against the allowance | (46) | (6) | |
Ending balance | $ 2,310 | $ 1,678 | $ 0 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Credit card | Credit card | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accrued interest receivable written off | $ 9.2 | $ 4.7 |
Investment Securities - Schedul
Investment Securities - Schedule of Investments in Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 596,757 | $ 203,418 |
Accrued Interest | $ 639 | 631 |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Fair Value | |
Gross Unrealized Gains | $ 1,011 | 0 |
Gross Unrealized Losses | (3,220) | (8,611) |
Fair Value | $ 595,187 | $ 195,438 |
Percentage of high credit quality on amortized cost basis of investments | 92% | 67% |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 518,673 | $ 121,282 |
Accrued Interest | 206 | 217 |
Gross Unrealized Gains | 978 | 0 |
Gross Unrealized Losses | (780) | (3,510) |
Fair Value | 519,077 | 117,989 |
Multinational securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,548 | 19,658 |
Accrued Interest | 103 | 109 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (17) | (724) |
Fair Value | 8,634 | 19,043 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 32,609 | 41,890 |
Accrued Interest | 207 | 257 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,092) | (2,644) |
Fair Value | 31,724 | 39,503 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,714 | 8,899 |
Accrued Interest | 111 | 22 |
Gross Unrealized Gains | 33 | 0 |
Gross Unrealized Losses | (1,016) | (991) |
Fair Value | 27,842 | 7,930 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,272 | 9,556 |
Accrued Interest | 4 | 5 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (154) | (514) |
Fair Value | 7,122 | 9,047 |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 941 | 2,133 |
Accrued Interest | 8 | 21 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (161) | (228) |
Fair Value | $ 788 | $ 1,926 |
Investment Securities - Sched_2
Investment Securities - Schedule of Investment Securities in Gross Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | $ 500,942 | $ 39,432 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | (215) | (2,498) |
Investments in AFS debt securities, 12 months or longer, fair value | 94,245 | 156,006 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (3,005) | (6,113) |
Investments in AFS debt securities, total, fair value | 595,187 | 195,438 |
Investments in AFS debt securities, total, gross unrealized losses | (3,220) | (8,611) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 480,012 | 27,759 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | (58) | (1,171) |
Investments in AFS debt securities, 12 months or longer, fair value | 39,065 | 90,230 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (722) | (2,339) |
Investments in AFS debt securities, total, fair value | 519,077 | 117,989 |
Investments in AFS debt securities, total, gross unrealized losses | (780) | (3,510) |
Multinational securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 0 | 0 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | 0 | 0 |
Investments in AFS debt securities, 12 months or longer, fair value | 8,634 | 19,043 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (17) | (724) |
Investments in AFS debt securities, total, fair value | 8,634 | 19,043 |
Investments in AFS debt securities, total, gross unrealized losses | (17) | (724) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 0 | 4,480 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | 0 | (313) |
Investments in AFS debt securities, 12 months or longer, fair value | 31,724 | 35,023 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (1,092) | (2,331) |
Investments in AFS debt securities, total, fair value | 31,724 | 39,503 |
Investments in AFS debt securities, total, gross unrealized losses | (1,092) | (2,644) |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 20,930 | 6,448 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | (157) | (814) |
Investments in AFS debt securities, 12 months or longer, fair value | 6,912 | 1,482 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (859) | (177) |
Investments in AFS debt securities, total, fair value | 27,842 | 7,930 |
Investments in AFS debt securities, total, gross unrealized losses | (1,016) | (991) |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 0 | 0 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | 0 | 0 |
Investments in AFS debt securities, 12 months or longer, fair value | 7,122 | 9,047 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (154) | (514) |
Investments in AFS debt securities, total, fair value | 7,122 | 9,047 |
Investments in AFS debt securities, total, gross unrealized losses | (154) | (514) |
Other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments in AFS debt securities, less than 12 months, fair value | 0 | 745 |
Investments in AFS debt securities, less than 12 months, gross unrealized losses | 0 | (200) |
Investments in AFS debt securities, 12 months or longer, fair value | 788 | 1,181 |
Investments in AFS debt securities, 12 months or longer, gross unrealized losses | (161) | (28) |
Investments in AFS debt securities, total, fair value | 788 | 1,926 |
Investments in AFS debt securities, total, gross unrealized losses | $ (161) | $ (228) |
Investment Securities - Sched_3
Investment Securities - Schedule of Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | $ 540,038 | |
Due After One Year Through Five Years | 21,991 | |
Due After Five Years Through Ten Years | 5,892 | |
Due After Ten Years | 28,836 | |
Total | $ 596,757 | $ 203,418 |
Weighted average yield for investments in AFS debt securities | ||
Due Within One Year | 4.79% | |
Due After One Year Through Five Years | 0.99% | |
Due After Five Years Through Ten Years | 2.98% | |
Due After Ten Years | 3.13% | |
Total | 4.55% | |
AFS investment securities—Fair value: | ||
Due Within One Year | $ 540,113 | |
Due After One Year Through Five Years | 21,155 | |
Due After Five Years Through Ten Years | 5,530 | |
Due After Ten Years | 27,750 | |
Total | 594,548 | |
Accrued interest | 639 | 631 |
U.S. Treasury securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 513,281 | |
Due After One Year Through Five Years | 5,392 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Total | 518,673 | 121,282 |
AFS investment securities—Fair value: | ||
Due Within One Year | 513,710 | |
Due After One Year Through Five Years | 5,161 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Total | 518,871 | |
Accrued interest | 206 | 217 |
Multinational securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 8,548 | |
Due After One Year Through Five Years | 0 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Total | 8,548 | 19,658 |
AFS investment securities—Fair value: | ||
Due Within One Year | 8,531 | |
Due After One Year Through Five Years | 0 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 0 | |
Total | 8,531 | |
Accrued interest | 103 | 109 |
Corporate bonds | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 18,122 | |
Due After One Year Through Five Years | 11,181 | |
Due After Five Years Through Ten Years | 3,306 | |
Due After Ten Years | 0 | |
Total | 32,609 | 41,890 |
AFS investment securities—Fair value: | ||
Due Within One Year | 17,785 | |
Due After One Year Through Five Years | 10,733 | |
Due After Five Years Through Ten Years | 2,999 | |
Due After Ten Years | 0 | |
Total | 31,517 | |
Accrued interest | 207 | 257 |
Agency mortgage-backed securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 135 | |
Due After Five Years Through Ten Years | 684 | |
Due After Ten Years | 27,895 | |
Total | 28,714 | 8,899 |
AFS investment securities—Fair value: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 128 | |
Due After Five Years Through Ten Years | 633 | |
Due After Ten Years | 26,970 | |
Total | 27,731 | |
Accrued interest | 111 | 22 |
Other asset-backed securities | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 87 | |
Due After One Year Through Five Years | 5,283 | |
Due After Five Years Through Ten Years | 1,902 | |
Due After Ten Years | 0 | |
Total | 7,272 | 9,556 |
AFS investment securities—Fair value: | ||
Due Within One Year | 87 | |
Due After One Year Through Five Years | 5,133 | |
Due After Five Years Through Ten Years | 1,898 | |
Due After Ten Years | 0 | |
Total | 7,118 | |
Accrued interest | 4 | 5 |
Other | ||
Investments in AFS debt securities—Amortized cost: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 0 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 941 | |
Total | 941 | 2,133 |
AFS investment securities—Fair value: | ||
Due Within One Year | 0 | |
Due After One Year Through Five Years | 0 | |
Due After Five Years Through Ten Years | 0 | |
Due After Ten Years | 780 | |
Total | 780 | |
Accrued interest | $ 8 | $ 21 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains on investments in available-for-sale debt securities | $ 3,356 | $ 0 | $ 0 |
Gross realized losses on investments in available-for-sale debt securities | $ 509 | $ 0 | $ 0 |
Investment Securities - Sched_4
Investment Securities - Schedule of Securitization of Investments (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Securitization investments | $ 106,748 | $ 201,331 |
Personal Loans | ||
Variable Interest Entity [Line Items] | ||
Securitization investments | 27,247 | 20,172 |
Student Loans | ||
Variable Interest Entity [Line Items] | ||
Securitization investments | $ 79,501 | $ 181,159 |
Securitization and Variable I_2
Securitization and Variable Interest Entities (Details) | 12 Months Ended | |
Dec. 31, 2023 entity trust | Dec. 31, 2022 entity | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of consolidated VIEs (in entities) | 6 | 6 |
Number of consolidated VIEs established (in entities) | 1 | |
Number of consolidated entities which were previous nonconsolidated | 1 | |
Number of consolidated VIEs exercised securitization clean up calls (in entities) | 2 | |
Number of nonconsolidated entities in which investments are held | 22 | 23 |
Number of trusts established | trust | 1 | |
Number of nonconsolidated VIEs exercised securitization clean up calls (in entities) | 1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 1,622,991 | $ 898,527 | |
Less: accumulated impairment | 0 | $ 0 | |
Beginning balance, net | 1,393,505 | 1,622,991 | 898,527 |
Additional goodwill recognized | 17,688 | 724,464 | |
Goodwill impairment expense | (247,174) | 0 | 0 |
Ending balance | 1,393,505 | 1,622,991 | $ 898,527 |
Lending | |||
Goodwill [Roll Forward] | |||
Beginning balance, net | 17,688 | ||
Ending balance | 17,688 | ||
Technology Platform | |||
Goodwill [Roll Forward] | |||
Beginning balance, net | 1,338,658 | 1,585,832 | |
Ending balance | 1,338,658 | 1,585,832 | |
Financial Services | |||
Goodwill [Roll Forward] | |||
Beginning balance, net | 37,159 | 37,159 | |
Ending balance | $ 37,159 | 37,159 | |
Technisys S.A. | |||
Goodwill [Roll Forward] | |||
Beginning balance, net | 713,217 | ||
Ending balance | 713,217 | ||
Golden Pacific Bancorp, Inc. | |||
Goodwill [Roll Forward] | |||
Beginning balance, net | 11,247 | ||
Ending balance | $ 11,247 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Balance | $ 687,542 | $ 660,730 |
Accumulated Amortization | (323,494) | (218,575) |
Net Book Value | 364,048 | $ 442,155 |
Amortization expense related to capitalized software | $ 4,246 | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 8 years 6 months | 8 years 8 months 12 days |
Gross Balance | $ 461,438 | $ 444,438 |
Accumulated Amortization | (151,823) | (97,202) |
Net Book Value | $ 309,615 | 347,236 |
Developed technology | Wyndham Capital Mortgage | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets acquired | $ 17,000 | |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 3 years 10 months 24 days | 3 years 10 months 24 days |
Gross Balance | $ 167,350 | $ 167,350 |
Accumulated Amortization | (141,248) | (99,264) |
Net Book Value | $ 26,102 | $ 68,086 |
Trade names, trademarks and domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 5 years 10 months 24 days | 8 years 8 months 12 days |
Gross Balance | $ 20,060 | $ 20,060 |
Accumulated Amortization | (8,436) | (4,028) |
Net Book Value | 11,624 | 16,032 |
Core banking infrastructure | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Balance | 17,100 | 17,100 |
Accumulated Amortization | (17,100) | (17,100) |
Net Book Value | $ 0 | $ 0 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 4 years | 4 years |
Gross Balance | $ 20,344 | $ 10,532 |
Accumulated Amortization | (4,461) | (737) |
Net Book Value | $ 15,883 | $ 9,795 |
Core deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 7 years 3 months 18 days | 7 years 3 months 18 days |
Gross Balance | $ 1,000 | $ 1,000 |
Accumulated Amortization | (264) | (126) |
Net Book Value | $ 736 | $ 874 |
Broker-dealer license and trading rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (Years) | 5 years 8 months 12 days | 5 years 8 months 12 days |
Gross Balance | $ 250 | $ 250 |
Accumulated Amortization | (162) | (118) |
Net Book Value | $ 88 | $ 132 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 104,919,000 | $ 93,016,000 | $ 70,507,000 |
Impairment of intangible assets | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense Associated with Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2024 | $ 74,717 | |
2025 | 72,766 | |
2026 | 69,988 | |
2027 | 53,662 | |
2028 | 50,474 | |
Thereafter | 42,441 | |
Net Book Value | $ 364,048 | $ 442,155 |
Property, Equipment, Software_3
Property, Equipment, Software and Leases - Schedule of Property, Equipment and Software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Finance lease ROU assets, gross balance | $ 15,100 | $ 15,100 | |
Finance lease ROU assets, accumulated amortization | (7,191) | (5,033) | |
Finance lease ROU assets, carrying value | 7,909 | 10,067 | |
Total property, plant and equipment including finance leases, gross balance | 391,507 | 270,723 | |
Total property, plant and equipment including finance leases, accumulated depreciation/amortization | (174,599) | (100,619) | |
Total property, plant and equipment including finance leases, carrying value | 216,908 | 170,104 | |
Capitalized share-based compensation related to internally-developed software | 31,126 | 22,577 | $ 7,776 |
Amortization of share-based compensation expense | 16,074 | 6,223 | $ 792 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross balance | 292,445 | 172,101 | |
Property, plant and equipment, accumulated depreciation | (117,003) | (54,516) | |
Property, plant and equipment, carrying value | 175,442 | 117,585 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross balance | 39,046 | 40,257 | |
Property, plant and equipment, accumulated depreciation | (20,467) | (17,145) | |
Property, plant and equipment, carrying value | 18,579 | 23,112 | |
Computer hardware | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross balance | 24,899 | 21,265 | |
Property, plant and equipment, accumulated depreciation | (19,000) | (13,736) | |
Property, plant and equipment, carrying value | 5,899 | 7,529 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross balance | 16,825 | 18,808 | |
Property, plant and equipment, accumulated depreciation | (10,797) | (10,122) | |
Property, plant and equipment, carrying value | 6,028 | 8,686 | |
Building and land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross balance | 3,192 | 3,192 | |
Property, plant and equipment, accumulated depreciation | (141) | (67) | |
Property, plant and equipment, carrying value | $ 3,051 | $ 3,125 |
Property, Equipment, Software_4
Property, Equipment, Software and Leases - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) suite | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 201,416,000 | $ 151,360,000 | $ 101,568,000 |
Abandonment costs | 0 | 0 | 0 |
Tangible asset impairment charges | $ 0 | 0 | 0 |
Right to use, number of stadium suites | suite | 2 | ||
Occupancy expense | $ 31,946,000 | 33,170,000 | 28,949,000 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Operating lease, renewal term | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Operating lease, renewal term | 10 years | ||
Property, Plant, Equipment and Finance Lease ROU Assets | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 96,497,000 | $ 59,081,000 | $ 31,061,000 |
Property, Equipment, Software_5
Property, Equipment, Software and Leases - Components of Operating and Finance Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant And Equipment And Leases [Abstract] | |||
Operating lease cost | $ 21,905 | $ 20,805 | $ 20,188 |
Finance lease cost – amortization of ROU assets | 2,157 | 2,157 | 2,157 |
Finance lease cost – interest expense on lease liabilities | 452 | 469 | 485 |
Short-term lease cost | 1,718 | 2,031 | 1,335 |
Variable lease cost | 3,509 | 3,483 | 3,979 |
Sublease income | (1,034) | 0 | (717) |
Total lease cost | 28,707 | 28,945 | 27,427 |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash outflows from operating leases | 26,997 | 21,682 | 19,811 |
Operating cash outflows from finance leases | 452 | 469 | 488 |
Financing cash outflows from finance leases | 509 | 488 | 516 |
Supplemental non-cash information | |||
Non-cash operating lease ROU assets obtained in exchange for lease liabilities | 8,553 | $ 12,734 | |
Non-cash operating lease ROU assets obtained in exchange for lease liabilities | (3,885) | ||
Operating lease ROU assets obtained through acquisitions | $ 6,995 | $ 764 |
Property, Equipment, Software_6
Property, Equipment, Software and Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
ROU assets | $ 89,635 | $ 97,135 |
Operating lease liabilities | $ 108,649 | $ 117,758 |
Weighted average remaining lease term (in years) | 6 years 10 months 24 days | 7 years 6 months |
Weighted average discount rate | 5.70% | 5.20% |
Finance Leases | ||
ROU assets | $ 7,909 | $ 10,067 |
Finance lease liability | $ 13,172 | $ 13,683 |
Weighted average remaining lease term (in years) | 16 years 3 months 18 days | 17 years 3 months 18 days |
Weighted average discount rate | 3.40% | 3.40% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, equipment and software | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accruals and other liabilities | Accounts payable, accruals and other liabilities |
Property, Equipment, Software_7
Property, Equipment, Software and Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 24,536 | |
2025 | 23,150 | |
2026 | 21,513 | |
2027 | 15,773 | |
2028 | 15,211 | |
Thereafter | 33,296 | |
Total | 133,479 | |
Less: imputed interest | (24,830) | |
Lease liabilities | 108,649 | $ 117,758 |
Finance Leases | ||
2024 | 968 | |
2025 | 1,038 | |
2026 | 1,060 | |
2027 | 1,061 | |
2028 | 1,061 | |
Thereafter | 11,931 | |
Total | 17,119 | |
Less: imputed interest | (3,947) | |
Lease liabilities | $ 13,172 | $ 13,683 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets And Liabilities [Abstract] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |
Accounts receivable, net | $ 169,852 | $ 127,050 |
Prepaid expenses and capitalized contract costs | 112,748 | 73,429 |
Credit default swap | 103,204 | 0 |
Restricted investments | 83,551 | 28,651 |
Investments in equity securities | 22,920 | 22,825 |
Digital assets safeguarding asset | 9,292 | 106,826 |
Derivative financial instruments | 6,916 | 34,610 |
Other | 45,883 | 23,943 |
Other assets | 554,366 | $ 417,334 |
Capitalized incremental costs of obtaining certain contracts | $ 60,729 |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities - Schedule of Accounts Payable, Accruals and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets And Liabilities [Abstract] | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accruals and other liabilities | |
Accrued expenses | $ 202,259 | $ 145,971 |
Credit default swap | 103,204 | 0 |
Accounts payable | 93,301 | 126,875 |
Accrued interest | 66,614 | 17,700 |
Deferred tax liabilities, net | 40,229 | 56,482 |
Finance lease liability | 13,172 | 13,683 |
Digital assets safeguarding liability | 9,292 | 106,826 |
Deferred revenue | 5,718 | 10,028 |
Derivative financial liabilities | 4,604 | 9,251 |
Other | 11,355 | 29,399 |
Accounts payable, accruals and other liabilities | $ 549,748 | $ 516,215 |
Deposits - Schedule of Interest
Deposits - Schedule of Interest-Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Interest-bearing deposits: | ||
Savings deposits | $ 12,902,033 | $ 4,383,953 |
Demand deposits | 2,663,335 | 1,912,452 |
Time deposits | 3,003,625 | 969,387 |
Total interest-bearing deposits | 18,568,993 | 7,265,792 |
Brokered deposits | 3,160,414 | 1,026,400 |
Brokered time deposits | 2,971,462 | 940,000 |
Brokered demand deposits | 188,952 | 86,400 |
Uninsured deposits | $ 21,268 | $ 20,842 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2024 | $ 2,578,881 | |
2025 | 424,198 | |
2026 | 296 | |
2028 | 250 | |
Total | $ 3,003,625 | $ 969,387 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | 12 Months Ended | |||
Oct. 04, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Total, before unamortized debt issuance costs, premiums and discounts | $ 5,259,584,000 | $ 5,520,963,000 | ||
Less: unamortized debt issuance costs, premiums and discounts | (26,168,000) | (35,081,000) | ||
Total debt | 5,233,416,000 | 5,485,882,000 | ||
Debt discounts issued | 0 | |||
Debt premium | 0 | |||
Amount not available for general borrowing purposes to secure letter of credit | 6,400,000 | 9,100,000 | ||
Asset Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Amount not available for general borrowing purposes to secure letter of credit | 27,200,000 | 11,700,000 | ||
Personal loan securitizations | ||||
Debt Instrument [Line Items] | ||||
Total Collateral | $ 494,643,000 | |||
Weighted Average Effective Interest Rate | 5.94% | |||
Total, before unamortized debt issuance costs, premiums and discounts | $ 239,340,000 | 529,132,000 | ||
Student loan securitizations | ||||
Debt Instrument [Line Items] | ||||
Total Collateral | $ 212,140,000 | |||
Weighted Average Effective Interest Rate | 3.83% | |||
Total, before unamortized debt issuance costs, premiums and discounts | $ 182,744,000 | $ 246,856,000 | ||
Secured Debt | Asset Pledged as Collateral | ||||
Debt Instrument [Line Items] | ||||
Total Capacity | 166,500,000 | |||
Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Total Capacity | $ 50,000,000 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Unused commitment fee percentage | 0% | |||
Minimum | Personal loan securitizations | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 1.30% | |||
Minimum | Student loan securitizations | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 3.09% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Unused commitment fee percentage | 0.65% | |||
Maximum | Personal loan securitizations | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 6.21% | |||
Maximum | Student loan securitizations | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 4.44% | |||
Convertible senior notes | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 0% | |||
Weighted Average Effective Interest Rate | 0.43% | 0.42% | 0.43% | |
Total, before unamortized debt issuance costs, premiums and discounts | $ 1,111,972,000 | $ 1,200,000,000 | ||
Less: unamortized debt issuance costs, premiums and discounts | (13,300,000) | (19,400,000) | ||
Debt discounts issued | $ 24,000,000 | |||
Interest expense | 5,100,000 | 5,100,000 | $ 1,200,000 | |
Net carrying amount | 1,100,000,000 | 1,180,000,000 | ||
Other financing | Other Financings | ||||
Debt Instrument [Line Items] | ||||
Total Collateral | 186,556,000 | |||
Total Capacity | 216,525,000 | |||
Total, before unamortized debt issuance costs, premiums and discounts | 0 | 0 | ||
Other financing | Other Financings | Securities Investment | ||||
Debt Instrument [Line Items] | ||||
Total Collateral | 131,700,000 | |||
Other financing | Other Financings | Loans at fair value | ||||
Debt Instrument [Line Items] | ||||
Total Collateral | 54,800,000 | |||
Personal loan warehouse facilities | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Total Collateral | $ 1,271,233,000 | |||
Weighted Average Effective Interest Rate | 6.20% | |||
Total Capacity | $ 4,925,000,000 | |||
Total, before unamortized debt issuance costs, premiums and discounts | $ 1,077,444,000 | 1,452,085,000 | ||
Personal loan warehouse facilities | Minimum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 5.61% | |||
Personal loan warehouse facilities | Maximum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 7.30% | |||
Student loan warehouse facilities | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Total Collateral | $ 2,530,122,000 | |||
Weighted Average Effective Interest Rate | 6.72% | |||
Total Capacity | $ 3,945,000,000 | |||
Total, before unamortized debt issuance costs, premiums and discounts | $ 2,095,046,000 | 1,504,926,000 | ||
Student loan warehouse facilities | Minimum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 6.13% | |||
Student loan warehouse facilities | Maximum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 7.16% | |||
Credit card warehouse facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Total Collateral | $ 0 | |||
Stated Interest Rate | 6.68% | |||
Weighted Average Effective Interest Rate | 0% | |||
Total Capacity | $ 100,000,000 | |||
Total, before unamortized debt issuance costs, premiums and discounts | 0 | 0 | ||
Risk retention warehouse facilities | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Total Collateral | $ 74,043,000 | |||
Weighted Average Effective Interest Rate | 7.03% | |||
Total Capacity | $ 200,000,000 | |||
Total, before unamortized debt issuance costs, premiums and discounts | $ 67,038,000 | 101,964,000 | ||
Risk retention warehouse facilities | Minimum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 5.47% | |||
Risk retention warehouse facilities | Maximum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 8.72% | |||
Revolving credit facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Amount not available for general borrowing purposes to secure letter of credit | $ 13,100,000 | |||
Revolving credit facility | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Stated Interest Rate | 6.95% | |||
Weighted Average Effective Interest Rate | 7.07% | |||
Total Capacity | $ 645,000,000 | |||
Total, before unamortized debt issuance costs, premiums and discounts | $ 486,000,000 | $ 486,000,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 12 Months Ended | ||||
Apr. 28, 2023 USD ($) | Oct. 04, 2021 USD ($) day $ / shares | Dec. 31, 2023 USD ($) loan shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Total accrued interest payable on borrowings | $ 11,189,000 | $ 13,538,000 | |||
Debt discounts issued | 0 | ||||
Gain on extinguishment of convertible debt | $ 14,574,000 | $ 0 | $ 0 | ||
Conversion price (in dollars per share) | $ / shares | $ 22.41 | ||||
Line of Credit | Personal loan warehouse facilities | |||||
Debt Instrument [Line Items] | |||||
Number of new loans opened | loan | 2 | ||||
Maximum borrowing capacity | $ 4,925,000,000 | ||||
Maximum available capacity of opened facilities | $ 1,000,000,000 | ||||
Line of Credit | Student loan warehouse facilities | |||||
Debt Instrument [Line Items] | |||||
Number of new loans opened | loan | 2 | ||||
Maximum borrowing capacity | $ 3,945,000,000 | ||||
Maximum available capacity of opened facilities | 550,000,000 | ||||
Line of Credit | Risk retention warehouse facilities | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 200,000,000 | ||||
Number of loans closed | loan | 1 | ||||
Revolving credit facility | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 645,000,000 | ||||
Convertible senior notes | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 1,200,000,000 | 1,100,000,000 | |||
Net proceeds from offering | $ 1,176,000,000 | ||||
Purchasers' discount percentage | 2% | ||||
Debt discounts issued | $ 24,000,000 | ||||
Debt issuance costs | $ 1,700,000 | ||||
Debt repurchased face amount | 88,000,000 | ||||
Gain on extinguishment of convertible debt | $ 14,600,000 | ||||
Conversion rate | 0.00446150 | ||||
Available for conversion (in shares) | shares | 49,610,631 | ||||
Observation period | day | 30 | ||||
Convertible debt, threshold, trading days preceding maturity date (in days) | day | 30 | ||||
Amended and Restated Revolving Credit Agreement | Revolving credit facility | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 645,000,000 | ||||
Expiration period of revolving credit facility from closing date of agreement | 5 years | ||||
Amended and Restated Revolving Credit Agreement | Revolving credit facility | Revolving credit facility | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.10% |
Debt - Maturities of Borrowings
Debt - Maturities of Borrowings (Details) - Debt with Scheduled Payments $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 0 |
2025 | 0 |
2026 | 1,111,972 |
2027 | 0 |
2028 | 486,000 |
Thereafter | 0 |
Total | $ 1,597,972 |
Equity - Narrative (Details)
Equity - Narrative (Details) | 12 Months Ended | |||||||
May 28, 2021 USD ($) period $ / shares shares | Jan. 07, 2021 USD ($) | Dec. 31, 2023 USD ($) vote $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Jun. 01, 2021 $ / shares shares | Dec. 31, 2020 shares | Dec. 31, 2019 shares | |
Temporary Equity [Line Items] | ||||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 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) | $ / shares | $ 0.0000025 | $ 0 | $ 0 | |||||
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 | 3,234,000 | 469,150,522 | ||||
Redemption of redeemable preferred stock (in shares) | 15,000,000 | 15,000,000 | ||||||
Value of shares redeemed and canceled | $ | $ 150,000,000 | $ 150,000,000 | ||||||
Dividends payable | $ | $ 0 | |||||||
Common stock, shares authorized (in shares) | 3,100,000,000 | 3,100,000,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0 | $ 0 | ||||||
Common stock, shares issued (in shares) | 975,861,793 | 933,896,120 | ||||||
Common stock, shares outstanding (in shares) | 975,861,793 | 933,896,120 | ||||||
Number of votes per share of common stock | vote | 1 | |||||||
Total cost of capped call transaction | $ | $ 113,760,000 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 22.41 | |||||||
Cap price (in dollars per share) | $ / shares | $ 32.02 | |||||||
Warrant Liability | ||||||||
Temporary Equity [Line Items] | ||||||||
Reclassification to permanent equity in conjunction with the business combination | $ | $ 161,775,000 | $ 161,775,000 | ||||||
Warrant To Purchase Series H Redeemable Preferred Stock | ||||||||
Temporary Equity [Line Items] | ||||||||
Number of warrants issued (in shares) | 12,170,990 | |||||||
Series 1 Redeemable Preferred Stock | ||||||||
Temporary Equity [Line Items] | ||||||||
Redeemable preferred stock, shares authorized (in shares) | 4,500,000 | |||||||
Redeemable preferred stock, conversion ratio | 1 | |||||||
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) | $ / shares | $ 100 | $ 100 | ||||||
Special distribution | $ | $ 21,200,000 | $ 21,200,000 | ||||||
Dividend rate (in dollars per share) | $ / shares | $ 12.50 | |||||||
Temporary equity, dividend rate percentage | 12.50% | |||||||
Temporary equity, dividend rate spread percentage | 9.94% | |||||||
Temporary equity, dividend default spread | 4% | |||||||
Number of periods where dividends payable can be deferred (up to) | period | 3 | |||||||
Number of periods where dividends payable deferred cause a triggering event (or more) | period | 4 | |||||||
Temporary equity, settlement, percentage of total outstanding | 33.33% | |||||||
Temporary equity, redemption value | $ | $ 323,400,000 | $ 323,400,000 | ||||||
Series 1 Redeemable Preferred Stock | Secured Overnight Financing Rate (SOFR) | ||||||||
Temporary Equity [Line Items] | ||||||||
Temporary equity, basis spread on variable rate | 0.10% | |||||||
Series 1 Redeemable Preferred Stock | Dividend Paid | ||||||||
Temporary Equity [Line Items] | ||||||||
Dividends declared and paid | $ | $ 40,425,000 | $ 40,425,000 | $ 40,426,000 | |||||
Fair value of Series H preferred stock | ||||||||
Temporary Equity [Line Items] | ||||||||
Fair value of Series H preferred stock (in dollars per share) | $ / shares | $ 21.89 | |||||||
Fair value of Series H preferred stock | Common Stock Transaction | ||||||||
Temporary Equity [Line Items] | ||||||||
Fair value of Series H preferred stock (in dollars per share) | $ / shares | $ 10.57 | |||||||
Common Stock | ||||||||
Temporary Equity [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 3,000,000,000 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||
Nonvoting Common Stock | ||||||||
Temporary Equity [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) | $ / shares | $ 0.0001 | |||||||
Common stock, shares issued (in shares) | 0 | 0 | ||||||
Common stock, shares outstanding (in shares) | 0 | 0 |
Equity - Valuation Inputs for W
Equity - Valuation Inputs for Warrant Liability (Details) | May 28, 2021 $ / shares |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Exercise price of warrants (in dollars per share) | $ 8.86 |
Fair value of Series H preferred stock | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value of Series H preferred stock (in dollars per share) | $ 21.89 |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrant liability, measurement input | 0.003 |
Expected term (years) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants expected term | 2 years 10 months 24 days |
Expected volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrant liability, measurement input | 0.339 |
Dividend yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrant liability, measurement input | 0 |
Equity - Warrant Liability (Det
Equity - Warrant Liability (Details) - Warrant Liability - USD ($) $ in Thousands | 12 Months Ended | |
May 28, 2021 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 39,959 | |
Change in valuation inputs or other assumptions | 121,816 | |
Reclassification to permanent equity in conjunction with the Business Combination | $ (161,775) | (161,775) |
Fair value at end of period | $ 0 |
Equity - Common Stock Reserved
Equity - Common Stock Reserved for Future Issuance (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 206,182,041 | 199,995,512 |
Possible future issuance under stock plans | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 45,384,011 | 26,434,957 |
Convertible Debt | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 49,610,631 | 53,538,000 |
Outstanding common stock warrants | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 12,170,990 | 12,170,990 |
Outstanding stock options, restricted stock units and performance stock units | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 99,016,409 | 107,851,565 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Loss) Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 5,208,102 | $ 4,377,329 | $ (120,115) |
Other comprehensive income (loss) before reclassifications | 6,915 | (7,110) | (1,413) |
Amounts reclassified from AOCI into earnings | 172 | 285 | 108 |
Total other comprehensive income (loss) | 7,087 | (6,825) | (1,305) |
Ending balance | 5,234,612 | 5,208,102 | 4,377,329 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (8,296) | (1,471) | (166) |
Total other comprehensive income (loss) | 7,087 | (6,825) | (1,305) |
Ending balance | (1,209) | (8,296) | (1,471) |
AFS Debt Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (8,611) | (1,351) | 0 |
Other comprehensive income (loss) before reclassifications | 6,238 | (7,545) | (1,459) |
Amounts reclassified from AOCI into earnings | 172 | 285 | 108 |
Total other comprehensive income (loss) | 6,410 | (7,260) | (1,351) |
Ending balance | (2,201) | (8,611) | (1,351) |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 315 | (120) | (166) |
Other comprehensive income (loss) before reclassifications | 677 | 435 | 46 |
Amounts reclassified from AOCI into earnings | 0 | 0 | 0 |
Total other comprehensive income (loss) | 677 | 435 | 46 |
Ending balance | $ 992 | $ 315 | $ (120) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Gains (Losses) Recognized on Derivative Instruments (Details) - Not designated as hedging instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | $ (3,620) | $ 358,845 | $ 25,740 |
IRLCs | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 1,576 | (3,543) | (11,861) |
Purchase price earn-out | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 9 | 1,094 | 9,312 |
Third party warrants | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 78 | (21) | 573 |
Special payment | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 0 | 0 | (21,181) |
Derivative contracts to manage future loan sale execution risk | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | (12,134) | 354,834 | 49,090 |
Derivative contracts to manage future loan sale execution risk | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | (8,782) | 302,002 | 42,741 |
Derivative contracts to manage future loan sale execution risk | Interest rate caps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | (5,910) | 8,680 | (125) |
Derivative contracts to manage future loan sale execution risk | Home loan pipeline hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 2,558 | 44,152 | 6,474 |
Derivative contracts not designed to manage future loan sale execution risk | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | 876 | 15,064 | 0 |
Derivative contracts not designed to manage future loan sale execution risk | Interest rate caps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) from fair value changes on derivatives | $ 5,975 | $ (8,583) | $ (193) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivative Instruments Subject to Enforceable Master Netting Arrangements (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Gross Derivative Assets | ||
Total, gross | $ 2,209,000 | $ 24,612,000 |
Derivative netting | (1,347,000) | (80,000) |
Total, net | 862,000 | 24,532,000 |
Gross Derivative Liabilities | ||
Total, gross | (5,951,000) | (9,331,000) |
Derivative netting | 1,347,000 | 80,000 |
Total, net | (4,604,000) | (9,251,000) |
Cash collateral | 0 | 0 |
Interest rate swaps | ||
Gross Derivative Assets | ||
Total, gross | 2,208,000 | 23,128,000 |
Gross Derivative Liabilities | ||
Total, gross | (1,347,000) | 0 |
Interest rate caps | ||
Gross Derivative Assets | ||
Total, gross | 0 | 0 |
Gross Derivative Liabilities | ||
Total, gross | (3,276,000) | (9,251,000) |
Home loan pipeline hedges | ||
Gross Derivative Assets | ||
Total, gross | 1,000 | 1,484,000 |
Gross Derivative Liabilities | ||
Total, gross | $ (1,328,000) | $ (80,000) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Notional Amounts of Derivative Contracts Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional amount | $ 13,737,388 | $ 6,828,335 |
IRLCs | ||
Derivative [Line Items] | ||
Notional amount | 126,388 | 82,335 |
Derivative contracts to manage future loan sale execution risk | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 12,491,000 | 5,638,177 |
Derivative contracts to manage future loan sale execution risk | Interest rate caps | ||
Derivative [Line Items] | ||
Notional amount | 405,000 | 405,000 |
Derivative contracts to manage future loan sale execution risk | Home loan pipeline hedges | ||
Derivative [Line Items] | ||
Notional amount | 226,000 | 126,000 |
Derivative contracts not designed to manage future loan sale execution risk | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 84,000 | 171,823 |
Derivative contracts not designed to manage future loan sale execution risk | Interest rate caps | ||
Derivative [Line Items] | ||
Notional amount | $ 405,000 | $ 405,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | ||
Investments in AFS debt securities | $ 595,187 | $ 195,438 |
Servicing rights | 180,469 | 149,854 |
Derivative assets | 6,916 | 34,610 |
Digital assets safeguarding asset | 9,292 | 106,826 |
Liabilities | ||
Residual interests classified as debt | 7,396 | 17,048 |
Derivative liability | 4,604 | 9,251 |
Digital assets safeguarding liability | 9,292 | 106,826 |
Unpaid principal related to debt measured at fair value | 128,619 | 98,868 |
Losses from changes in fair value in debt | 2,969 | 586 |
Home loans | ||
Liabilities | ||
Transfers out of Level 3 into level 2 related to home loans | 66,198 | 0 |
Fair Value | ||
Assets | ||
Total assets | 4,563,441 | 2,203,728 |
Liabilities | ||
Debt | 4,979,822 | 5,045,816 |
Total liabilities | 23,592,644 | 12,385,976 |
Fair Value | Fair Value, Recurring | ||
Assets | ||
Investments in AFS debt securities | 595,187 | 195,438 |
Loans at fair value | 22,122,255 | 13,557,074 |
Servicing rights | 180,469 | 149,854 |
Digital assets safeguarding asset | 9,292 | 106,826 |
Total assets | 23,027,679 | 14,245,213 |
Liabilities | ||
Debt | 119,641 | 89,142 |
Digital assets safeguarding liability | 9,292 | 106,826 |
Total liabilities | 142,280 | 222,583 |
Fair Value | Fair Value, Recurring | Asset-backed bonds | ||
Assets | ||
Asset-backed bonds and residual investments | 70,828 | 155,093 |
Fair Value | Fair Value, Recurring | Residual Investments | ||
Assets | ||
Asset-backed bonds and residual investments | 35,920 | 46,238 |
Fair Value | Fair Value, Recurring | Third party warrants | ||
Assets | ||
Derivative assets | 630 | 630 |
Fair Value | Fair Value, Recurring | Derivative assets | ||
Assets | ||
Derivative assets | 2,209 | 24,612 |
Fair Value | Fair Value, Recurring | Purchase price earn-out | ||
Assets | ||
Derivative assets | 0 | 54 |
Fair Value | Fair Value, Recurring | IRLCs | ||
Assets | ||
Derivative assets | 2,155 | 216 |
Fair Value | Fair Value, Recurring | Student loan commitments | ||
Assets | ||
Student loan commitments | 5,465 | 0 |
Liabilities | ||
Student loan commitments | 0 | 236 |
Fair Value | Fair Value, Recurring | Interest rate caps | ||
Assets | ||
Derivative assets | 3,269 | 9,178 |
Fair Value | Fair Value, Recurring | Residual interests classified as debt | ||
Liabilities | ||
Residual interests classified as debt | 7,396 | 17,048 |
Fair Value | Fair Value, Recurring | Derivative Liabilities Subject To Master Netting Arrangement | ||
Liabilities | ||
Derivative liability | 5,951 | 9,331 |
Level 1 | ||
Assets | ||
Total assets | 3,615,578 | 1,846,302 |
Liabilities | ||
Debt | 955,306 | 826,242 |
Total liabilities | 955,306 | 826,242 |
Level 1 | Fair Value, Recurring | ||
Assets | ||
Investments in AFS debt securities | 527,711 | 137,032 |
Loans at fair value | 0 | 0 |
Servicing rights | 0 | 0 |
Digital assets safeguarding asset | 0 | 0 |
Total assets | 527,711 | 137,032 |
Liabilities | ||
Debt | 0 | 0 |
Digital assets safeguarding liability | 0 | 0 |
Total liabilities | 0 | 0 |
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 | Third party warrants | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 1 | Fair Value, Recurring | Derivative assets | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 1 | Fair Value, Recurring | Purchase price earn-out | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 1 | Fair Value, Recurring | IRLCs | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 1 | Fair Value, Recurring | Student loan commitments | ||
Assets | ||
Student loan commitments | 0 | 0 |
Liabilities | ||
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, Recurring | Derivative Liabilities Subject To Master Netting Arrangement | ||
Liabilities | ||
Derivative liability | 0 | 0 |
Level 2 | ||
Assets | ||
Total assets | 83,551 | 28,651 |
Liabilities | ||
Debt | 4,024,516 | 4,219,574 |
Total liabilities | 22,637,338 | 11,559,734 |
Level 2 | Fair Value, Recurring | ||
Assets | ||
Investments in AFS debt securities | 67,476 | 58,406 |
Loans at fair value | 66,198 | 0 |
Servicing rights | 0 | 0 |
Digital assets safeguarding asset | 9,292 | 106,826 |
Total assets | 219,272 | 354,115 |
Liabilities | ||
Debt | 119,641 | 89,142 |
Digital assets safeguarding liability | 9,292 | 106,826 |
Total liabilities | 134,884 | 205,299 |
Level 2 | Fair Value, Recurring | Asset-backed bonds | ||
Assets | ||
Asset-backed bonds and residual investments | 70,828 | 155,093 |
Level 2 | Fair Value, Recurring | Residual Investments | ||
Assets | ||
Asset-backed bonds and residual investments | 0 | 0 |
Level 2 | Fair Value, Recurring | Third party warrants | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 2 | Fair Value, Recurring | Derivative assets | ||
Assets | ||
Derivative assets | 2,209 | 24,612 |
Level 2 | Fair Value, Recurring | Purchase price earn-out | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 2 | Fair Value, Recurring | IRLCs | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 2 | Fair Value, Recurring | Student loan commitments | ||
Assets | ||
Student loan commitments | 0 | 0 |
Liabilities | ||
Student loan commitments | 0 | 0 |
Level 2 | Fair Value, Recurring | Interest rate caps | ||
Assets | ||
Derivative assets | 3,269 | 9,178 |
Level 2 | Fair Value, Recurring | Residual interests classified as debt | ||
Liabilities | ||
Residual interests classified as debt | 0 | 0 |
Level 2 | Fair Value, Recurring | Derivative Liabilities Subject To Master Netting Arrangement | ||
Liabilities | ||
Derivative liability | 5,951 | 9,331 |
Level 3 | ||
Assets | ||
Total assets | 864,312 | 328,775 |
Liabilities | ||
Debt | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Fair Value, Recurring | ||
Assets | ||
Investments in AFS debt securities | 0 | 0 |
Loans at fair value | 22,056,057 | 13,557,074 |
Servicing rights | 180,469 | 149,854 |
Digital assets safeguarding asset | 0 | 0 |
Total assets | 22,280,696 | 13,754,066 |
Liabilities | ||
Debt | 0 | 0 |
Digital assets safeguarding liability | 0 | 0 |
Total liabilities | 7,396 | 17,284 |
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 | 35,920 | 46,238 |
Level 3 | Fair Value, Recurring | Third party warrants | ||
Assets | ||
Derivative assets | 630 | 630 |
Level 3 | Fair Value, Recurring | Derivative assets | ||
Assets | ||
Derivative assets | 0 | 0 |
Level 3 | Fair Value, Recurring | Purchase price earn-out | ||
Assets | ||
Derivative assets | 0 | 54 |
Level 3 | Fair Value, Recurring | IRLCs | ||
Assets | ||
Derivative assets | 2,155 | 216 |
Level 3 | Fair Value, Recurring | Student loan commitments | ||
Assets | ||
Student loan commitments | 5,465 | 0 |
Liabilities | ||
Student loan commitments | 0 | 236 |
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 | 7,396 | 17,048 |
Level 3 | Fair Value, Recurring | Derivative Liabilities Subject To Master Netting Arrangement | ||
Liabilities | ||
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Liabilities | ||
Net impact on earnings | $ 224,116 | $ 165,210 |
Securitization clean-up calls | 39,936 | 518,659 |
Residual interests classified as debt | ||
Liabilities | ||
Fair value at beginning of period | (17,048) | (93,682) |
Impact on Earnings | (425) | (6,608) |
Purchases | (1,203) | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 11,280 | 83,242 |
Other Changes | 0 | 0 |
Transfers Out of Level 3 | 0 | |
Fair value at end of period | (7,396) | (17,048) |
Student loan commitments | ||
Liabilities | ||
Fair value at beginning of period | (236) | 2,220 |
Impact on Earnings | (1,876) | |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | (580) | |
Other Changes | 0 | |
Fair value at end of period | (236) | |
Loans at fair value | ||
Assets | ||
Fair value at beginning of period | 13,557,074 | 5,952,972 |
Impact on Earnings | 175,654 | 134,078 |
Purchases | 198,657 | 2,498,447 |
Sales | (2,064,295) | (4,884,392) |
Issuances | 17,428,597 | 12,985,381 |
Settlements | (7,172,046) | (3,064,074) |
Other Changes | (1,386) | (65,338) |
Transfers Out of Level 3 | (66,198) | |
Fair value at end of period | 22,056,057 | 13,557,074 |
Personal loans | ||
Assets | ||
Fair value at beginning of period | 8,610,434 | 2,289,426 |
Impact on Earnings | (5,045) | 129,132 |
Purchases | 61,951 | 1,677,682 |
Sales | (938,403) | (2,911,491) |
Issuances | 13,801,065 | 9,773,705 |
Settlements | (6,197,997) | (2,322,634) |
Other Changes | (1,432) | (25,386) |
Transfers Out of Level 3 | 0 | |
Fair value at end of period | 15,330,573 | 8,610,434 |
Student loans | ||
Assets | ||
Fair value at beginning of period | 4,877,177 | 3,450,837 |
Impact on Earnings | 174,005 | 15,786 |
Purchases | 111,923 | 817,864 |
Sales | (96,678) | (877,920) |
Issuances | 2,630,040 | 2,245,499 |
Settlements | (970,690) | (734,937) |
Other Changes | (293) | (39,952) |
Transfers Out of Level 3 | 0 | |
Fair value at end of period | 6,725,484 | 4,877,177 |
Home loans | ||
Assets | ||
Fair value at beginning of period | 69,463 | 212,709 |
Impact on Earnings | 6,694 | (10,840) |
Purchases | 24,783 | 2,901 |
Sales | (1,029,214) | (1,094,981) |
Issuances | 997,492 | 966,177 |
Settlements | (3,359) | (6,503) |
Other Changes | 339 | 0 |
Transfers Out of Level 3 | (66,198) | 0 |
Fair value at end of period | 0 | 69,463 |
Assets, Excluding Home Equity Loan | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Asset transfers into level 3 | 0 | 0 |
Servicing rights | ||
Assets | ||
Fair value at beginning of period | 149,854 | 168,259 |
Impact on Earnings | 34,700 | 39,651 |
Purchases | 2,464 | 3,712 |
Sales | (1,259) | (22,020) |
Issuances | 59,119 | 45,126 |
Settlements | (64,409) | (84,874) |
Other Changes | 0 | 0 |
Transfers Out of Level 3 | 0 | |
Fair value at end of period | 180,469 | 149,854 |
Residual Investments | ||
Assets | ||
Fair value at beginning of period | 46,238 | 121,019 |
Impact on Earnings | 1,375 | 2,240 |
Purchases | 3,235 | 0 |
Sales | (807) | (36,732) |
Issuances | 0 | 0 |
Settlements | (14,121) | (40,289) |
Other Changes | 0 | 0 |
Transfers Out of Level 3 | 0 | |
Fair value at end of period | 35,920 | 46,238 |
IRLCs | ||
Assets | ||
Fair value at beginning of period | 216 | 3,759 |
Impact on Earnings | 5,323 | (2,630) |
Purchases | 363 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (3,747) | (913) |
Other Changes | 0 | 0 |
Transfers Out of Level 3 | 0 | |
Fair value at end of period | 2,155 | 216 |
Student loan commitments | ||
Assets | ||
Fair value at beginning of period | (236) | |
Impact on Earnings | 7,480 | |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | (1,779) | |
Other Changes | 0 | |
Transfers Out of Level 3 | 0 | |
Fair value at end of period | 5,465 | (236) |
Third party warrants | ||
Assets | ||
Fair value at beginning of period | 630 | 1,369 |
Impact on Earnings | 0 | (739) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other Changes | 0 | 0 |
Transfers Out of Level 3 | 0 | |
Fair value at end of period | 630 | 630 |
Purchase price earn-out | ||
Assets | ||
Fair value at beginning of period | 54 | 4,272 |
Impact on Earnings | 9 | 1,094 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (63) | (5,312) |
Other Changes | 0 | 0 |
Transfers Out of Level 3 | 0 | |
Fair value at end of period | $ 0 | $ 54 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) included in earnings from changes in instrument-specific credit risk | $ (26,625) | $ (49,453) | $ 4,143 |
Investments in equity securities | 22,920 | 22,825 | |
Fair Value | Fair Value, Nonrecurring | Non-Securitization Investments – Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | 22,920 | 22,825 | |
Fair Value | Fair Value, Nonrecurring | Other Security Investments, Investment Four | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in equity securities | $ 19,739 | $ 19,739 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Valuation Inputs and Assumptions (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Aggregate amount committed | $ 89,369 | |
Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.122 | 0.179 |
Residual interests classified as debt | 0.123 | 0.172 |
Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.283 | 0.320 |
Residual interests classified as debt | 0.126 | 0.181 |
Conditional prepayment rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.148 | 0.199 |
Residual interests classified as debt | 0.124 | 0.178 |
Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.005 | 0.004 |
Residual interests classified as debt | 0.007 | 0.006 |
Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.069 | 0.054 |
Residual interests classified as debt | 0.007 | 0.008 |
Annual default rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.014 | 0.011 |
Residual interests classified as debt | 0.007 | 0.007 |
Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.058 | 0.048 |
Residual interests classified as debt | 0.100 | 0.075 |
Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.155 | 0.105 |
Residual interests classified as debt | 0.103 | 0.075 |
Discount rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Residual investments | 0.087 | 0.067 |
Residual interests classified as debt | 0.100 | 0.075 |
Loan funding probability | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate lock commitments | 0.719 | 0.111 |
Student loan commitments | 0.950 | 0.950 |
Loan funding probability | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Interest rate lock commitments | 0.772 | 0.586 |
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 | 0.763 | 0.463 |
Student loan commitments | 0.950 | 0.950 |
Personal Loans | Market servicing costs | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.001 | 0.002 |
Personal Loans | Market servicing costs | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.018 | 0.005 |
Personal Loans | Market servicing costs | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.002 | 0.003 |
Personal Loans | Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.175 | 0.173 |
Servicing rights | 0.179 | 0.179 |
Personal Loans | Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.295 | 0.255 |
Servicing rights | 0.355 | 0.313 |
Personal Loans | Conditional prepayment rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.232 | 0.191 |
Servicing rights | 0.224 | 0.227 |
Personal Loans | Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.045 | 0.038 |
Servicing rights | 0.033 | 0.034 |
Personal Loans | Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.504 | 0.377 |
Servicing rights | 0.225 | 0.079 |
Personal Loans | Annual default rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.048 | 0.044 |
Servicing rights | 0.047 | 0.049 |
Personal Loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.055 | 0.054 |
Servicing rights | 0.088 | 0.078 |
Personal Loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.081 | 0.083 |
Servicing rights | 0.088 | 0.078 |
Personal Loans | Discount rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.055 | 0.061 |
Servicing rights | 0.088 | 0.078 |
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 | 0.084 | 0.163 |
Servicing rights | 0.109 | 0.154 |
Student Loans | Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.126 | 0.218 |
Servicing rights | 0.153 | 0.219 |
Student Loans | Conditional prepayment rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.105 | 0.204 |
Servicing rights | 0.122 | 0.178 |
Student Loans | Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.004 | 0.002 |
Servicing rights | 0.003 | 0.003 |
Student Loans | Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.064 | 0.045 |
Servicing rights | 0.037 | 0.043 |
Student Loans | Annual default rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.006 | 0.005 |
Servicing rights | 0.006 | 0.004 |
Student Loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.041 | 0.036 |
Servicing rights | 0.088 | 0.078 |
Student Loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.081 | 0.087 |
Servicing rights | 0.088 | 0.078 |
Student Loans | Discount rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.043 | 0.040 |
Servicing rights | 0.088 | 0.078 |
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 | 0.002 | 0.001 |
Home Loans | Market servicing costs | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing rights | 0.002 | 0.001 |
Home Loans | Conditional prepayment rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.020 | |
Servicing rights | 0.056 | 0.049 |
Home Loans | Conditional prepayment rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.102 | |
Servicing rights | 0.240 | 0.110 |
Home Loans | Conditional prepayment rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.070 | |
Servicing rights | 0.081 | 0.052 |
Home Loans | Annual default rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.001 | |
Servicing rights | 0.001 | 0.001 |
Home Loans | Annual default rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.013 | |
Servicing rights | 0.001 | 0.001 |
Home Loans | Annual default rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.001 | |
Servicing rights | 0.001 | 0.001 |
Home Loans | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.057 | |
Servicing rights | 0.092 | 0.090 |
Home Loans | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.141 | |
Servicing rights | 0.100 | 0.090 |
Home Loans | Discount rate | Weighted average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans | 0.059 | |
Servicing rights | 0.093 | 0.090 |
Fair Value Measurements - Sch_4
Fair Value Measurements - Schedule of Sensitivity Analysis for Servicing Rights (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Market servicing costs | ||
2.5 basis points increase | $ (6,176) | $ (10,395) |
5.0 basis points increase | (12,351) | (20,807) |
Conditional prepayment rate | ||
10% increase | (5,189) | (4,036) |
20% increase | (10,098) | (7,833) |
Annual default rate | ||
10% increase | (480) | (166) |
20% increase | (921) | (331) |
Discount rate | ||
100 basis points increase | (4,674) | (3,905) |
200 basis points increase | $ (9,054) | $ (7,562) |
Fair Value Measurements - Sch_5
Fair Value Measurements - Schedule of Safeguarding Assets and Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) digitalAsset | Dec. 31, 2022 USD ($) digitalAsset |
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | $ 9,292 | $ 106,826 |
Digital assets safeguarding liability | 9,292 | 106,826 |
Bitcoin (BTC) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 5,425 | 44,346 |
Digital assets safeguarding liability | 5,425 | 44,346 |
Ethereum (ETH) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 3,304 | 37,826 |
Digital assets safeguarding liability | 3,304 | 37,826 |
Ethereum Classic (ETC) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 294 | 2,333 |
Digital assets safeguarding liability | 294 | 2,333 |
Litecoin (LTC) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 198 | 2,492 |
Digital assets safeguarding liability | 198 | 2,492 |
Dogecoin (DOGE) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 8 | 4,784 |
Digital assets safeguarding liability | 8 | 4,784 |
Cardano (ADA) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 0 | 5,217 |
Digital assets safeguarding liability | 0 | 5,217 |
Solana (SOL) | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 0 | 1,588 |
Digital assets safeguarding liability | 0 | 1,588 |
All other | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Digital assets safeguarding asset | 63 | 8,240 |
Digital assets safeguarding liability | $ 63 | $ 8,240 |
Number of digital assets held | digitalAsset | 17 | 23 |
Fair Value Measurements - Sch_6
Fair Value Measurements - Schedule of Assets and Liabilities not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Other investments | $ 83,551 | $ 28,651 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 3,085,020 | 1,421,907 |
Restricted cash and restricted cash equivalents | 530,558 | 424,395 |
Loans at amortized cost | 0 | 0 |
Other investments | 0 | 0 |
Total assets | 3,615,578 | 1,846,302 |
Liabilities | ||
Time deposits | 0 | 0 |
Debt | 955,306 | 826,242 |
Total liabilities | 955,306 | 826,242 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash and restricted cash equivalents | 0 | 0 |
Loans at amortized cost | 0 | 0 |
Other investments | 83,551 | 28,651 |
Total assets | 83,551 | 28,651 |
Liabilities | ||
Time deposits | 18,612,822 | 7,340,160 |
Debt | 4,024,516 | 4,219,574 |
Total liabilities | 22,637,338 | 11,559,734 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash and restricted cash equivalents | 0 | 0 |
Loans at amortized cost | 864,312 | 328,775 |
Other investments | 0 | 0 |
Total assets | 864,312 | 328,775 |
Liabilities | ||
Time deposits | 0 | 0 |
Debt | 0 | 0 |
Total liabilities | 0 | 0 |
Carrying Value | ||
Assets | ||
Cash and cash equivalents | 3,085,020 | 1,421,907 |
Restricted cash and restricted cash equivalents | 530,558 | 424,395 |
Loans at amortized cost | 836,159 | 307,957 |
Other investments | 83,551 | 28,651 |
Total assets | 4,535,288 | 2,182,910 |
Liabilities | ||
Time deposits | 18,620,663 | 7,342,296 |
Debt | 5,113,775 | 5,396,740 |
Total liabilities | 23,734,438 | 12,739,036 |
Fair Value | ||
Assets | ||
Cash and cash equivalents | 3,085,020 | 1,421,907 |
Restricted cash and restricted cash equivalents | 530,558 | 424,395 |
Loans at amortized cost | 864,312 | 328,775 |
Other investments | 83,551 | 28,651 |
Total assets | 4,563,441 | 2,203,728 |
Liabilities | ||
Time deposits | 18,612,822 | 7,340,160 |
Debt | 4,979,822 | 5,045,816 |
Total liabilities | $ 23,592,644 | $ 12,385,976 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
May 28, 2022 | Jan. 01, 2022 shares | Dec. 31, 2023 USD ($) tranche quarterPeriod $ / shares shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Jun. 14, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for issuance | shares | 151,677,954 | 63,575,425 | ||||
Number of additional shares authorized for issuance | shares | 8,937,242 | |||||
Percentage of aggregate number of shares of common stock outstanding | 5% | |||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in dollars per share) | $ / shares | $ 6.51 | $ 7.32 | $ 16.92 | |||
Unrecognized compensation | $ 473.4 | |||||
Compensation cost related to share based awards, period for recognition | 2 years | |||||
Restricted stock units | Year 2023 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share award vesting rights, period | 6 months | |||||
Restricted stock units | Minimum | Year 2023 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share award vesting rights, percentage | 12.50% | |||||
Share award vesting rights, period after first vesting date, number of quarter periods | quarterPeriod | 6 | |||||
Restricted stock units | Maximum | Year 2023 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share award vesting rights, percentage | 25% | |||||
Share award vesting rights, period after first vesting date, number of quarter periods | quarterPeriod | 14 | |||||
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 | |||||
Share award vesting rights, period after first vesting date, number of quarter periods | quarterPeriod | 14 | |||||
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% | |||||
Share award vesting rights, period | 1 year | |||||
Share award vesting rights, period after first vesting date, number of quarter periods | quarterPeriod | 12 | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share awards, expiration period | 10 years | |||||
Share awards, expiration period after employee termination | 90 days | |||||
Aggregate intrinsic value of stock options exercised | $ 5.6 | $ 15 | $ 131.2 | |||
Aggregate intrinsic value of stock options outstanding | 40.3 | |||||
Aggregate intrinsic value of stock options exercisable | $ 40.3 | |||||
Stock options | Tranche one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share award vesting rights, percentage | 25% | |||||
Share award vesting rights, period | 1 year | |||||
Stock options | Tranche two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share award vesting rights, period | 3 years | |||||
Performance stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share award vesting rights, period | 4 years | |||||
Granted (in dollars per share) | $ / shares | $ 3.36 | $ 3.71 | $ 9.50 | |||
Unrecognized compensation | $ 6.5 | |||||
Compensation cost related to share based awards, period for recognition | 9 months 18 days | |||||
Performance target, volume weighted average closing price of stock, trading day period | 90 days | |||||
Number of vesting tranches | tranche | 3 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | $ 271,216 | $ 305,994 | $ 239,011 |
Technology and product development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | 91,400 | 77,674 | 61,431 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | 26,783 | 24,176 | 16,140 |
Cost of operations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | 10,662 | 17,837 | 11,743 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total | $ 142,371 | $ 186,307 | $ 149,697 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Stock Options | ||
Beginning balance (in shares) | 18,749,679 | |
Exercised (in shares) | (796,883) | |
Expired (in shares) | (56,064) | |
Ending balance (in shares) | 17,896,732 | 18,749,679 |
Exercisable (in shares) | 17,896,732 | |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 7.43 | |
Exercised (in dollars per share) | 1.44 | |
Expired (in dollars per share) | 6.67 | |
Ending balance (in dollars per share) | 7.70 | $ 7.43 |
Exercisable (in dollars per share) | $ 7.70 | |
Weighted Average Remaining Contractual Term (in years) | ||
Weighted average remaining contractual term, outstanding | 3 years 9 months 18 days | 4 years 8 months 12 days |
Weighted average remaining contractual term, exercisable | 3 years 9 months 18 days |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of RSU and PSU Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted stock units | |||
Number of Shares | |||
Beginning balance (in shares) | 69,538,139 | ||
Granted (in shares) | 38,399,214 | ||
Vested (in shares) | (33,564,543) | ||
Forfeited (in shares) | (9,493,314) | ||
Ending balance (in shares) | 64,879,496 | 69,538,139 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 9.07 | ||
Granted (in dollars per share) | 6.51 | $ 7.32 | $ 16.92 |
Vested (in dollars per share) | 8.42 | ||
Forfeited (in dollars per share) | 8.86 | ||
Ending balance (in dollars per share) | $ 7.95 | $ 9.07 | |
Total fair value, RSUs granted | $ 282.6 | $ 249.9 | $ 139.6 |
Performance stock units | |||
Number of Shares | |||
Beginning balance (in shares) | 19,563,747 | ||
Granted (in shares) | 97,752 | ||
Forfeited (in shares) | (3,421,318) | ||
Ending balance (in shares) | 16,240,181 | 19,563,747 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 9.84 | ||
Granted (in dollars per share) | 3.36 | $ 3.71 | $ 9.50 |
Forfeited (in dollars per share) | 7.52 | ||
Ending balance (in dollars per share) | $ 10.29 | $ 9.84 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Fair Value Inputs for PSUs (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 0.80% | ||
Risk-free interest rate, maximum | 0.80% | ||
Expected volatility, minimum | 34.90% | ||
Expected volatility, maximum | 35.90% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of common stock in (dollars per share) | $ 16.99 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of common stock in (dollars per share) | $ 23.21 | ||
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.60% | 1.60% | |
Expected volatility | 37.70% | 37.70% | |
Fair value of common stock in (dollars per share) | $ 12.06 | $ 12.06 | |
Dividend yield | 0% | 0% | 0% |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (131,899) | $ (299,751) | $ (461,023) |
Foreign | (169,259) | (18,970) | (20,154) |
Loss before income taxes | $ (301,158) | $ (318,721) | $ (481,177) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax expense: | |||
U.S. federal | $ 5,842 | $ 0 | $ 0 |
U.S. state and local | 8,640 | 4,275 | 1,481 |
Foreign | 930 | 909 | 75 |
Total current tax expense | 15,412 | 5,184 | 1,556 |
Deferred tax expense (benefit): | |||
U.S. state and local | (115) | 543 | 1,222 |
Foreign | (15,713) | (4,041) | (18) |
Deferred income taxes | (15,828) | (3,498) | 1,204 |
Income tax expense (benefit) | $ (416) | $ 1,686 | $ 2,760 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax benefit at federal statutory rate | $ (63,243) | $ (66,944) | $ (101,047) |
Goodwill impairment | 51,907 | 0 | 0 |
Valuation allowance for deferred tax assets | 14,461 | 27,101 | 92,197 |
Non-deductible compensation expense | 15,579 | 23,100 | 23,838 |
State and local income taxes, net of federal benefit | 6,725 | 4,591 | 2,096 |
Share-based compensation | 554 | 19,811 | (33,950) |
Research and development tax credits | (22,249) | (12,496) | (7,067) |
Change in fair value of warrants | 0 | 0 | 22,539 |
Other | (4,150) | 6,523 | 4,154 |
Income tax expense (benefit) | $ (416) | $ 1,686 | $ 2,760 |
Effective tax rate | 0.14% | (0.53%) | (0.57%) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 23,730 | $ 6,972 | $ 5,117 |
Gross increases – tax positions in prior period | 493 | 10,944 | 582 |
Gross decreases – tax positions in prior period | (27) | (98) | 0 |
Gross increases – tax positions in current period | 5,491 | 6,236 | 1,273 |
Lapse of statute of limitations | 0 | (324) | 0 |
Unrecognized tax benefits at end of year | $ 29,687 | $ 23,730 | $ 6,972 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) jurisdiction | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Income Tax Rate Reconciliation [Line Items] | |||
Unrecognized tax benefits that impact effective tax rate if realized | $ 7,525,000 | $ 6,812,000 | $ 0 |
Unrecognized tax benefits, interest and penalties | $ 0 | 0 | 0 |
Number of foreign jurisdictions with tax holidays | jurisdiction | 2 | ||
U.S. Federal and State | Research and Development Tax Credits | |||
Income Tax Rate Reconciliation [Line Items] | |||
Tax credit carryforwards | $ 95,211,000 | ||
Charged to Costs and Expenses | |||
Income Tax Rate Reconciliation [Line Items] | |||
Increase (decrease) in valuation allowance | $ 27,201,000 | $ 37,536,000 | $ 125,347,000 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||||
Net operating loss carryforwards | $ 236,492 | $ 287,473 | ||
Operating lease liabilities | 21,554 | 24,009 | ||
Share-based compensation | 24,730 | 27,571 | ||
Research and development credits | 77,395 | 56,811 | ||
Accruals and other | 59,364 | 32,130 | ||
Gross deferred tax assets | 419,535 | 427,994 | ||
Valuation allowance | (345,611) | (318,410) | $ (266,448) | $ (141,101) |
Total deferred tax assets | 73,924 | 109,584 | ||
Deferred tax liabilities: | ||||
Amortization | (42,261) | (101,971) | ||
Operating lease ROU assets | (18,790) | (20,597) | ||
Servicing rights | (49,202) | (41,168) | ||
Other | (3,900) | (2,330) | ||
Total deferred tax liabilities | (114,153) | (166,066) | ||
Deferred tax liabilities, net | $ (40,229) | $ (56,482) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Asset Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Balance at Beginning of Period | $ 318,410 | $ 266,448 | $ 141,101 |
Balance at End of Period | 345,611 | 318,410 | 266,448 |
Charged to Costs and Expenses | |||
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Increase (decrease) in valuation allowance | 27,201 | 37,536 | 125,347 |
Charged to Other Accounts | |||
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Increase (decrease) in valuation allowance | 0 | 14,426 | 0 |
Deductions | |||
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Increase (decrease) in valuation allowance | $ 0 | $ 0 | $ 0 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Operating Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
U.S. federal | Subject To Expiration | |
Income Tax Rate Reconciliation [Line Items] | |
Operating loss carryforwards | $ 47,943 |
U.S. federal | Not Subject To Expiration | |
Income Tax Rate Reconciliation [Line Items] | |
Operating loss carryforwards | 633,125 |
U.S. state | Subject To Expiration | |
Income Tax Rate Reconciliation [Line Items] | |
Operating loss carryforwards | 879,425 |
U.S. state | Not Subject To Expiration | |
Income Tax Rate Reconciliation [Line Items] | |
Operating loss carryforwards | 85,254 |
Foreign | Subject To Expiration | |
Income Tax Rate Reconciliation [Line Items] | |
Operating loss carryforwards | 35,411 |
Foreign | Not Subject To Expiration | |
Income Tax Rate Reconciliation [Line Items] | |
Operating loss carryforwards | $ 80,417 |
Commitments, Guarantees, Conc_3
Commitments, Guarantees, Concentrations and Contingencies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) repurchaseObligation | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Other Commitments [Line Items] | |||
Other commitment | $ 670,329,000 | ||
Payments for exclusive naming rights and partnerships | 67,277,000 | $ 50,829,000 | $ 22,017,000 |
Loans held for investment | $ 836,159,000 | 307,957,000 | |
Number of types of repurchase obligations | repurchaseObligation | 3 | ||
Term of repurchase obligation | 3 years | ||
Repurchase obligation, event of default, period after loan origination | 90 days | ||
Estimated repurchase obligations | $ 5,900,000 | 1,400,000 | |
Loans sold, subject to terms and conditions of repurchase obligations | 6,700,000,000 | 5,100,000,000 | |
Letters of credit outstanding with financial institutions | 6,400,000 | 9,100,000 | |
Collateral amount | 1,300,000 | 3,100,000 | |
Minimum net worth noncompliance, fines and penalties accrued | $ 0 | 0 | |
Employee contribution percentage up to IRS limit | 100% | ||
Asset Pledged as Collateral | |||
Other Commitments [Line Items] | |||
Letters of credit outstanding with financial institutions | $ 27,200,000 | $ 11,700,000 | |
Sponsorship, Advertising, and Cloud Computing Agreement | |||
Other Commitments [Line Items] | |||
Other commitment | $ 670,300,000 | ||
Sponsorship, Advertising, and Cloud Computing Agreement | Minimum | |||
Other Commitments [Line Items] | |||
Term of arrangement | 1 year | ||
Sponsorship, Advertising, and Cloud Computing Agreement | Maximum | |||
Other Commitments [Line Items] | |||
Term of arrangement | 17 years | ||
Unfunded Loan Commitment | |||
Other Commitments [Line Items] | |||
Other commitment | $ 18,800,000 | ||
Loans held for investment | 1,200,000 | ||
Unfunded Loan Commitment | Maximum | |||
Other Commitments [Line Items] | |||
Other commitment | $ 20,000,000 |
Commitments, Guarantees, Conc_4
Commitments, Guarantees, Concentrations and Contingencies - Other Commitments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 85,807 |
2025 | 58,330 |
2026 | 46,280 |
2027 | 46,845 |
2028 | 43,237 |
Thereafter | 389,830 |
Total | $ 670,329 |
Loss Per Share - Schedule of Lo
Loss Per Share - Schedule of Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net loss | $ (300,742) | $ (320,407) | $ (483,937) |
Less: Redeemable preferred stock dividends | (40,425) | (40,425) | (40,426) |
Net loss attributable to common stockholders – basic | (341,167) | (360,832) | (524,363) |
Net loss attributable to common stockholders – diluted | $ (341,167) | $ (360,832) | $ (524,363) |
Denominator: | |||
Weighted average common stock outstanding - basic (in shares) | 945,024,160 | 900,886,113 | 526,730,261 |
Weighted average common stock outstanding - diluted (in shares) | 945,024,160 | 900,886,113 | 526,730,261 |
Loss per share - basic (in dollars per share) | $ (0.36) | $ (0.40) | $ (1) |
Loss per share - diluted (in dollars per share) | $ (0.36) | $ (0.40) | $ (1) |
Loss Per Share - Schedule of An
Loss Per Share - Schedule of Anti-Dilutive Elements (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 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) | 17,896,732 | 18,749,679 | 21,171,147 |
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 | 12,170,990 | 12,170,990 |
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) | 64,879,496 | 69,538,139 | 48,687,524 |
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) | 16,240,181 | 19,563,747 | 22,970,396 |
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) | 49,610,631 | 53,538,000 | 53,538,000 |
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) | 45,859 | 6,305,595 | 0 |
Business Segment and Geograph_3
Business Segment and Geographic Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment and Geograph_4
Business Segment and Geographic Information - Schedule of Financial Results (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | $ 1,261,740 | $ 584,096 | $ 252,244 |
Noninterest income (expense) | 861,049 | 989,439 | 732,628 |
Total net revenue | $ 2,122,789 | 1,573,535 | 984,872 |
Number of reportable segments | segment | 3 | ||
Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | $ 1,297,134 | 624,054 | 261,838 |
Noninterest income (expense) | 862,342 | 998,746 | 729,449 |
Total net revenue | 2,159,476 | 1,622,800 | 991,287 |
Servicing rights – change in valuation inputs or assumptions | (34,700) | (39,651) | 2,651 |
Residual interests classified as debt – change in valuation inputs or assumptions | 425 | 6,608 | 22,802 |
Directly attributable expenses | (1,207,404) | (1,048,667) | (687,604) |
Contribution profit (loss) | 917,797 | 541,090 | 329,136 |
Intercompany expenses | 22,199 | 7,604 | 1,863 |
Reportable Segments | Lending | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 960,773 | 531,480 | 258,102 |
Noninterest income (expense) | 409,848 | 608,511 | 480,221 |
Total net revenue | 1,370,621 | 1,139,991 | 738,323 |
Servicing rights – change in valuation inputs or assumptions | (34,700) | (39,651) | 2,651 |
Residual interests classified as debt – change in valuation inputs or assumptions | 425 | 6,608 | 22,802 |
Directly attributable expenses | (513,073) | (442,945) | (364,169) |
Contribution profit (loss) | 823,273 | 664,003 | 399,607 |
Reportable Segments | Technology Platform | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 1,514 | 0 | (29) |
Noninterest income (expense) | 350,826 | 315,133 | 194,915 |
Total net revenue | 352,340 | 315,133 | 194,886 |
Servicing rights – change in valuation inputs or assumptions | 0 | 0 | 0 |
Residual interests classified as debt – change in valuation inputs or assumptions | 0 | 0 | 0 |
Directly attributable expenses | (257,554) | (238,620) | (130,439) |
Contribution profit (loss) | 94,786 | 76,513 | 64,447 |
Reportable Segments | Financial Services | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 334,847 | 92,574 | 3,765 |
Noninterest income (expense) | 101,668 | 75,102 | 54,313 |
Total net revenue | 436,515 | 167,676 | 58,078 |
Servicing rights – change in valuation inputs or assumptions | 0 | 0 | 0 |
Residual interests classified as debt – change in valuation inputs or assumptions | 0 | 0 | 0 |
Directly attributable expenses | (436,777) | (367,102) | (192,996) |
Contribution profit (loss) | (262) | (199,426) | (134,918) |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | (35,394) | (39,958) | (9,594) |
Noninterest income (expense) | (1,293) | (9,307) | 3,179 |
Total net revenue | $ (36,687) | $ (49,265) | $ (6,415) |
Business Segment and Geograph_5
Business Segment and Geographic Information - Schedule of Reconciliation of Contribution Profit (Loss) To Loss Before Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Corporate/Other total net loss | $ 2,122,789 | $ 1,573,535 | $ 984,872 |
Share-based compensation expense | (271,216) | (305,994) | (239,011) |
Depreciation and amortization expense | (201,416) | (151,360) | (101,568) |
Goodwill impairment expense | (247,174) | 0 | 0 |
Fair value change of warrant liabilities | 0 | 0 | (107,328) |
Loss before income taxes | (301,158) | (318,721) | (481,177) |
Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Reportable segments total contribution profit | 917,797 | 541,090 | 329,136 |
Corporate/Other total net loss | 2,159,476 | 1,622,800 | 991,287 |
Intercompany expenses | 22,199 | 7,604 | 1,863 |
Servicing rights – change in valuation inputs or assumptions | 34,700 | 39,651 | (2,651) |
Residual interests classified as debt – change in valuation inputs or assumptions | (425) | (6,608) | (22,802) |
Other | |||
Segment Reporting Information [Line Items] | |||
Corporate/Other total net loss | (36,687) | (49,265) | (6,415) |
Share-based compensation expense | (271,216) | (305,994) | (239,011) |
Employee-related costs | (250,326) | (184,764) | (143,847) |
Depreciation and amortization expense | (201,416) | (151,360) | (101,568) |
Fair value change of warrant liabilities | 0 | 0 | (107,328) |
Special payment | 0 | 0 | (21,181) |
Corporate And Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Other corporate and unallocated expenses | $ (268,610) | $ (209,075) | $ (167,373) |
Business Segment and Geograph_6
Business Segment and Geographic Information - Schedule of Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | $ 2,122,789 | $ 1,573,535 | $ 984,872 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | 2,028,112 | 1,504,680 | 981,705 |
All foreign countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net revenue | $ 94,677 | $ 68,855 | $ 3,167 |
Business Segment and Geograph_7
Business Segment and Geographic Information - Schedule of Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 30,074,858 | $ 19,007,675 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 29,133,417 | 17,921,296 |
All foreign countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 941,441 | $ 1,086,379 |
Regulatory Capital - Schedule o
Regulatory Capital - Schedule of Risk and Leverage-Based Capital Ratios and Amounts (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
SoFi Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CET1 risk-based capital, amount | $ 3,331,616 | $ 1,162,024 |
Tier 1 risk-based capital, amount | 3,331,616 | 1,162,024 |
Total risk-based capital, amount | 3,386,105 | 1,202,429 |
Tier 1 leverage, amount | 3,331,616 | 1,162,024 |
Risk-weighted assets | 19,244,841 | 7,972,956 |
Quarterly adjusted average assets | $ 22,273,285 | $ 7,615,481 |
CET1 risk-based capital, ratio | 0.173 | 0.146 |
Tier 1 risk-based capital, ratio | 0.173 | 0.146 |
Total risk-based capital, ratio | 0.176 | 0.151 |
Tier 1 leverage, ratio | 0.150 | 0.153 |
CET1 risk-based capital, required minimum | 0.070 | 0.070 |
Tier 1 risk-based capital, required minimum | 0.085 | 0.085 |
Total risk-based capital, required minimum | 0.105 | 0.105 |
Tier 1 leverage, required minimum | 0.040 | 0.040 |
CET1 risk-based capital, well capitalized minimum | 0.065 | 0.065 |
Tier 1 risk-based capital, well capitalized minimum | 0.080 | 0.080 |
Total risk-based capital, well capitalized minimum | 0.100 | 0.100 |
Tier 1 leverage, well capitalized minimum | 0.050 | 0.050 |
SoFi Technologies | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CET1 risk-based capital, amount | $ 3,439,969 | $ 3,188,341 |
Tier 1 risk-based capital, amount | 3,439,969 | 3,188,341 |
Total risk-based capital, amount | 3,494,458 | 3,228,746 |
Tier 1 leverage, amount | 3,439,969 | 3,188,341 |
Risk-weighted assets | 22,883,185 | 15,695,217 |
Quarterly adjusted average assets | $ 26,782,318 | $ 14,592,551 |
CET1 risk-based capital, ratio | 0.150 | 0.203 |
Tier 1 risk-based capital, ratio | 0.150 | 0.203 |
Total risk-based capital, ratio | 0.153 | 0.206 |
Tier 1 leverage, ratio | 0.128 | 0.218 |
CET1 risk-based capital, required minimum | 0.070 | 0.070 |
Tier 1 risk-based capital, required minimum | 0.085 | 0.085 |
Total risk-based capital, required minimum | 0.105 | 0.105 |
Tier 1 leverage, required minimum | 0.040 | 0.040 |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Information - Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 01, 2021 | May 28, 2021 | Dec. 31, 2020 | |||
Assets | |||||||||
Cash and cash equivalents | $ 3,085,020 | $ 1,421,907 | $ 494,711 | ||||||
Goodwill | 1,393,505 | 1,622,991 | 898,527 | ||||||
Intangible assets | 364,048 | 442,155 | |||||||
Other assets | 554,366 | 417,334 | |||||||
Total assets | 30,074,858 | 19,007,675 | |||||||
Liabilities: | |||||||||
Accounts payable, accruals and other liabilities | 549,748 | 516,215 | |||||||
Debt | 5,233,416 | 5,485,882 | |||||||
Total liabilities | 24,519,872 | 13,479,199 | |||||||
Temporary equity: | |||||||||
Redeemable preferred stock | 320,374 | [1] | 320,374 | [1] | 320,374 | $ 3,173,686 | |||
Permanent equity: | |||||||||
Common stock | [2] | 97 | 93 | ||||||
Additional paid-in capital | 7,039,987 | 6,719,826 | |||||||
Accumulated other comprehensive loss | (1,209) | (8,296) | |||||||
Accumulated deficit | (1,804,263) | (1,503,521) | |||||||
Total permanent equity | 5,234,612 | 5,208,102 | $ 4,377,329 | $ (120,115) | |||||
Total liabilities, temporary equity and permanent equity | $ 30,074,858 | $ 19,007,675 | |||||||
Redeemable preferred stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0.0000025 | ||||||
Redeemable preferred stock, shares authorized (in shares) | 100,000,000 | 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 | 3,234,000 | 469,150,522 | |||||
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) | 975,861,793 | 933,896,120 | |||||||
Common stock, shares outstanding (in shares) | 975,861,793 | 933,896,120 | |||||||
Redemption amount | $ 323,400 | $ 323,400 | |||||||
Nonvoting Common Stock | |||||||||
Permanent equity: | |||||||||
Common stock, par value (in dollars per share) | $ 0.0001 | ||||||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||||
Common stock, shares issued (in shares) | 0 | 0 | |||||||
Common stock, shares outstanding (in shares) | 0 | 0 | |||||||
Parent Company | |||||||||
Assets | |||||||||
Cash and cash equivalents | $ 201 | $ 201 | |||||||
Intercompany receivables | 9,245 | 0 | |||||||
Investments in subsidiaries | 6,407,596 | 5,802,861 | |||||||
Goodwill | 590,539 | 713,217 | |||||||
Intangible assets | 180,240 | 213,328 | |||||||
Other assets | 250 | 471 | |||||||
Total assets | 7,188,071 | 6,730,078 | |||||||
Liabilities: | |||||||||
Accounts payable, accruals and other liabilities | 50,296 | 21,019 | |||||||
Debt | 1,582,789 | 1,180,583 | |||||||
Total liabilities | 1,633,085 | 1,201,602 | |||||||
Temporary equity: | |||||||||
Redeemable preferred stock | 320,374 | 320,374 | |||||||
Permanent equity: | |||||||||
Common stock | 97 | 93 | |||||||
Additional paid-in capital | 7,039,987 | 6,719,826 | |||||||
Accumulated other comprehensive loss | (1,209) | (8,296) | |||||||
Accumulated deficit | (1,804,263) | (1,503,521) | |||||||
Total permanent equity | 5,234,612 | 5,208,102 | |||||||
Total liabilities, temporary equity and permanent equity | $ 7,188,071 | $ 6,730,078 | |||||||
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) | 975,861,793 | 933,896,120 | |||||||
Common stock, shares outstanding (in shares) | 975,861,793 | 933,896,120 | |||||||
Redemption amount | $ 323,400 | $ 323,400 | |||||||
[1] Redemption amount is $323,400 as of December 31, 2023 and 2022. Includes 100,000,000 non-voting common shares authorized and no non-voting common shares issued and outstanding as of December 31, 2023 and 2022. See Note 13. Equity for additional information. |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Information - Condensed Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest income | $ 2,051,067 | $ 773,371 | $ 355,020 |
Interest expense | 789,327 | 189,275 | 102,776 |
Net interest income | 1,261,740 | 584,096 | 252,244 |
Noninterest income | 861,049 | 989,439 | 732,628 |
Total net revenue | 2,122,789 | 1,573,535 | 984,872 |
Noninterest expense | 2,423,947 | 1,892,256 | 1,466,049 |
Loss before income taxes | (301,158) | (318,721) | (481,177) |
Income tax benefit (expense) | 416 | (1,686) | (2,760) |
Net loss | (300,742) | (320,407) | (483,937) |
Other comprehensive income (loss) | |||
Unrealized gains (losses) on available-for-sale debt securities, net | 6,410 | (7,260) | (1,351) |
Foreign currency translation adjustments, net | 677 | 435 | 46 |
Total other comprehensive income (loss) | 7,087 | (6,825) | (1,305) |
Comprehensive loss | (293,655) | (327,232) | (485,242) |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest income | 0 | 0 | 6,279 |
Interest expense | 28,258 | 5,075 | 14,926 |
Net interest income | (28,258) | (5,075) | (8,647) |
Noninterest income | 14,832 | 0 | 2,617 |
Total net revenue | (13,426) | (5,075) | (6,030) |
Noninterest expense | 169,971 | 42,114 | 278,697 |
Loss before income taxes | (183,397) | (47,189) | (284,727) |
Income tax benefit (expense) | 10,696 | 0 | 5,294 |
Loss before equity in loss of subsidiaries | (172,701) | (47,189) | (279,433) |
Equity in loss of subsidiaries | (128,041) | (273,218) | (204,504) |
Net loss | (300,742) | (320,407) | (483,937) |
Other comprehensive income (loss) | |||
Unrealized gains (losses) on available-for-sale debt securities, net | 6,410 | (7,260) | (1,351) |
Foreign currency translation adjustments, net | 677 | 435 | 46 |
Total other comprehensive income (loss) | 7,087 | (6,825) | (1,305) |
Comprehensive loss | $ (293,655) | $ (327,232) | $ (485,242) |
Parent Company Condensed Fina_5
Parent Company Condensed Financial Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net cash (used in) provided by operating activities | $ (7,227,139) | $ (7,255,858) | $ (1,350,217) |
Investing activities | |||
Proceeds from securitization investments | 108,291 | 118,825 | 247,058 |
Proceeds from non-securitization investments | 5,354 | 0 | 109,534 |
Net cash (used in) provided by investing activities | (1,889,864) | (106,333) | 110,193 |
Financing activities | |||
Proceeds from other debt issuances | 339,995 | 439,990 | 1,191,908 |
Repayment of other debt | (799,859) | (516,363) | (912,890) |
Taxes paid related to net share settlement of share-based awards | (15,300) | (8,983) | (42,644) |
Payment of redeemable preferred stock dividends | (40,425) | (40,425) | (40,426) |
Redemptions of redeemable common and preferred stock | 0 | 0 | (282,859) |
Proceeds from Business Combination and PIPE Investment | 0 | 0 | 1,989,851 |
Proceeds from warrant exercises | 0 | 0 | 95,047 |
Purchase of capped calls | 0 | 0 | (113,760) |
Net cash provided by financing activities | 10,885,602 | 8,439,485 | 684,987 |
Effect of exchange rates on cash and cash equivalents | 677 | 571 | 46 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 1,769,276 | 1,077,865 | (554,991) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 1,846,302 | 768,437 | 1,323,428 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 3,615,578 | 1,846,302 | 768,437 |
Parent Company | |||
Operating activities | |||
Net cash (used in) provided by operating activities | (42,618) | 290,298 | (136,134) |
Investing activities | |||
Changes in investments in subsidiaries | 79,185 | (284,295) | (3,231,314) |
Issuances of notes to subsidiaries | 0 | 0 | (312) |
Proceeds from securitization investments | 0 | 0 | 106,994 |
Proceeds from non-securitization investments | 0 | 0 | 107,534 |
Other investing activities | 0 | 0 | 13,122 |
Net cash (used in) provided by investing activities | 79,185 | (284,295) | (3,003,976) |
Financing activities | |||
Net change in debt facilities | 0 | 0 | 144,339 |
Proceeds from other debt issuances | 0 | 0 | 1,010,728 |
Repayment of other debt | 0 | 0 | (250,000) |
Taxes paid related to net share settlement of share-based awards | (15,300) | (8,983) | (42,644) |
Payment of redeemable preferred stock dividends | (20,213) | 0 | 0 |
Redemptions of redeemable common and preferred stock | 0 | 0 | (282,859) |
Proceeds from Business Combination and PIPE Investment | 0 | 0 | 1,989,851 |
Proceeds from warrant exercises | 0 | 0 | 95,047 |
Purchase of capped calls | 0 | 0 | (113,760) |
Other financing activities | (1,054) | 2,610 | (4,605) |
Net cash provided by financing activities | (36,567) | (6,373) | 2,546,097 |
Effect of exchange rates on cash and cash equivalents | 0 | 571 | 46 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 0 | 201 | (593,967) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 201 | 0 | 593,967 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 201 | $ 201 | $ 0 |
Parent Company Condensed Fina_6
Parent Company Condensed Financial Information - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2021 | Oct. 04, 2021 | |
Common Stock | ||||
Debt Instrument [Line Items] | ||||
Stock issued upon conversion (in shares) | 9,490,000 | 9,490,000 | 450,832,666 | |
Convertible senior notes | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 1,100 | $ 1,100 | $ 1,200 | |
Debt repurchased face amount | $ 88 | $ 88 |