XML 49 R31.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Loans Held for Investment and Allowance for Credit Losses (Tables) | 12 Months Ended
--- | ---
Jun. 30, 2022
Receivables [Abstract] |
Schedule of Loans Held for Investment and Allowance for Credit Loss | Loans held for investment consisted of the following (in thousands):
|  | June 30, 2022 |  | June 30, 2021
Unpaid principal balance |  | $ | 2,516,733 |  |  | $ | 2,058,863 |
Accrued interest receivable |  | 20,697 |  |  | 15,466 |
Premiums on loans held for investment |  | 8,911 |  |  | 7,071 |
Less: Discount due to loss on loan purchase commitment (1) |  | (20,692) |  |  | (53,177) |
Less: Discount due to loss on self-originated loans (1) |  | (20,443) |  |  | — |
Less: Fair value adjustment on loans acquired through business combination |  | (1,645) |  |  | (5,903) |
Total loans held for investment |  | $ | 2,503,561 |  |  | $ | 2,022,320 |
(1) As of June 30, 2021, discount due to loss on self-originated loans, in the amount of $6.2 million, was included with discount due to loss on loan purchase commitment.
Schedule of Credit Quality by ITACs Score | The following table presents an analysis of the credit quality, by ITACs score, of the amortized cost basis by fiscal year of origination on loans held for investment and loans held for sale (in thousands) as of June 30, 2022:
|  | Amortized Costs Basis by Fiscal Year of Origination |  |
|  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Total
96+ |  | $ | 1,218,104 |  |  | $ | 122,503 |  |  | $ | 33,458 |  |  | $ | 157 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1,374,223 |
94 – 96 |  | 620,403 |  |  | 11,240 |  |  | 773 |  |  | 13 |  |  | 2 |  |  | — |  |  | 632,431 |
90 – 94 |  | 220,056 |  |  | 3,886 |  |  | 6 |  |  | 4 |  |  | — |  |  | — |  |  | 223,952 |
<90 |  | 44,300 |  |  | 135 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | 44,437 |
No score(1) |  | 186,044 |  |  | 20,554 |  |  | 3,368 |  |  | 444 |  |  | 79 |  |  | 2 |  |  | 210,491 |
Total loan receivables |  | $ | 2,288,907 |  |  | $ | 158,318 |  |  | $ | 37,607 |  |  | $ | 618 |  |  | $ | 82 |  |  | $ | 2 |  |  | $ | 2,485,534 |
(1)This balance represents loan receivables in new markets without sufficient data currently available for use by the Affirm scoring methodology including loan receivables originated in Canada and Australia.
|  | Net Charge-offs by Fiscal Year of Origination |  |
|  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Total
Current period charge-offs |  | (133,338) |  |  | (89,960) |  |  | (3,783) |  |  | (548) |  |  | (120) |  |  | (21) |  |  | (227,770) |
Current period recoveries |  | 5,288 |  |  | 9,802 |  |  | 4,417 |  |  | 2,952 |  |  | 1,242 |  |  | 897 |  |  | 24,598 |
Current period net charge-offs |  | $ | (128,050) |  |  | $ | (80,158) |  |  | $ | 634 |  |  | $ | 2,404 |  |  | $ | 1,122 |  |  | $ | 876 |  |  | $ | (203,172) |
Schedule of Delinquent Financing Receivables | The following table presents an aging analysis of the amortized cost basis of loans held for investment and loans held for sale by delinquency status (in thousands):
|  | June 30, 2022 |  | June 30, 2021
Non-delinquent loans |  | $ | 2,322,919 |  |  | $ | 1,939,976 |
4 – 29 calendar days past due |  | 77,963 |  |  | 43,838 |
30 – 59 calendar days past due |  | 34,669 |  |  | 17,267 |
60 – 89 calendar days past due |  | 26,919 |  |  | 12,044 |
90 – 119 calendar days past due (1) |  | 23,064 |  |  | 6,759 |
Total amortized cost basis |  | $ | 2,485,534 |  |  | $ | 2,019,884 |
(1)Includes $22.7 million of loan receivables as of June 30, 2022 that are 90 days or more past due, but are not on nonaccrual status.
Schedule of Loans Held for Investment and Allowance for Credit Loss | The following table details activity in the allowance for credit losses (in thousands):
|  | Year ended June 30,
|  | 2022 |  | 2021 |  | 2020
Allowance at beginning of period |  | 117,760 |  |  | 95,137 |  |  | 66,260 |
Adjustment due to adoption of new accounting standard |  | — |  |  | 10,083 |  |  | — |
Provision for credit losses |  | 240,804 |  |  | 63,755 |  |  | 101,540 |
Charge-offs |  | (227,770) |  |  | (65,149) |  |  | (81,052) |
Recoveries of charged-off receivables |  | 24,598 |  |  | 13,934 |  |  | 8,389 |
Allowance at end of period |  | 155,392 |  |  | 117,760 |  |  | 95,137 |

X
- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11B -URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953423-111524 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447 + Details
Name: | us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953659-111524 + Details
Name: | us-gaap_FinancingReceivableCreditQualityIndicatorsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of aging analysis for financing receivable. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919253-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 7A -URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953401-111524 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 55 -Paragraph 80 -URI https://asc.fasb.org/extlink&oid=124267575&loc=SL82922355-210448 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 7 -URI https://asc.fasb.org/extlink&oid=123577603&loc=d3e5111-111524 + Details
Name: | us-gaap_PastDueFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
Name: | us-gaap_ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration