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Loans Held for Investment and Allowance for Credit Losses (Tables) | 12 Months Ended
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Jun. 30, 2023
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, 2023 |  | June 30, 2022
Unpaid principal balance |  | $ | 4,451,324 |  |  | $ | 2,516,733 |
Accrued interest receivable |  | 41,079 |  |  | 20,697 |
Premiums on loans held for investment |  | 7,135 |  |  | 8,911 |
Less: Discount due to loss on loan purchase commitment |  | (51,190) |  |  | (20,692) |
Less: Discount due to loss on directly originated loans |  | (45,145) |  |  | (20,443) |
Less: Fair value adjustment on loans acquired through business combination |  | (241) |  |  | (1,645) |
Total loans held for investment |  | $ | 4,402,962 |  |  | $ | 2,503,561 |
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 excluding accrued interest receivable, by fiscal year of origination on loans held for investment and loans held for sale as of June 30, 2023 (in thousands):
June 30, 2023
|  | Amortized Costs Basis by Fiscal Year of Origination |  |
|  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Total
96+ |  | $ | 2,628,060 |  |  | $ | 39,428 |  |  | $ | 18,910 |  |  | $ | 3,439 |  |  | $ | 9 |  |  | $ | 1 |  |  | $ | 2,689,847 |
94 – 96 |  | 1,104,553 |  |  | 7,755 |  |  | 439 |  |  | 77 |  |  | 6 |  |  | 2 |  |  | 1,112,832 |
90 – 94 |  | 133,940 |  |  | 3,116 |  |  | 26 |  |  | 2 |  |  | 4 |  |  | — |  |  | 137,088 |
<90 |  | 13,363 |  |  | 1,623 |  |  | 4 |  |  | 2 |  |  | — |  |  | — |  |  | 14,992 |
No score(1) |  | 335,690 |  |  | 59,204 |  |  | 11,562 |  |  | 489 |  |  | 252 |  |  | 9 |  |  | 407,206 |
Total amortized cost basis |  | $ | 4,215,606 |  |  | $ | 111,126 |  |  | $ | 30,941 |  |  | $ | 4,009 |  |  | $ | 271 |  |  | $ | 12 |  |  | $ | 4,361,965 |
(1)This balance represents loan receivables in markets without sufficient data currently available for use by the Affirm scoring methodology including loan receivables originated in Canada. The following table presents net charge-offs by fiscal year of origination for the year ended June 30, 2023 (in thousands):
|  | Net Charge-offs by Fiscal Year of Origination |  |
|  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Total
Current period charge-offs |  | (119,520) |  |  | (173,345) |  |  | (6,482) |  |  | (586) |  |  | (89) |  |  | (36) |  |  | (300,058) |
Current period recoveries |  | 5,997 |  |  | 17,719 |  |  | 4,653 |  |  | 1,259 |  |  | 794 |  |  | 587 |  |  | 31,009 |
Current period net charge-offs |  | $ | (113,523) |  |  | $ | (155,626) |  |  | $ | (1,829) |  |  | $ | 673 |  |  | $ | 705 |  |  | $ | 551 |  |  | $ | (269,049) |
The following table presents an analysis of the credit quality, by ITACS score, of the amortized cost basis excluding accrued interest receivable, by fiscal year of origination on loans held for investment and loans held for sale as of June 30, 2022 (in thousands):
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 amortized cost basis |  | $ | 2,288,907 |  |  | $ | 158,318 |  |  | $ | 37,607 |  |  | $ | 618 |  |  | $ | 82 |  |  | $ | 2 |  |  | $ | 2,485,534 |
(1)This balance represents loan receivables in markets without sufficient data currently available for use by the Affirm scoring methodology including loan receivables originated in Canada.
Schedule of Delinquent Financing Receivables | The following table presents an aging analysis of the amortized cost basis excluding accrued interest receivable of loans held for investment and loans held for sale by delinquency status (in thousands):
|  | June 30, 2023 |  | June 30, 2022
Non-delinquent loans |  | $ | 4,183,248 |  |  | $ | 2,322,919 |
4 – 29 calendar days past due |  | 92,876 |  |  | 77,963 |
30 – 59 calendar days past due |  | 36,399 |  |  | 34,669 |
60 – 89 calendar days past due |  | 28,171 |  |  | 26,919 |
90 – 119 calendar days past due(1) |  | 21,271 |  |  | 23,064 |
Total amortized cost basis |  | $ | 4,361,965 |  |  | $ | 2,485,534 |
(1)Includes $20.9 million and $22.7 million of loan receivables as of June 30, 2023 and June 30, 2022, respectively, 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, including charge-offs, recoveries and provision for loan losses (in thousands):
|  | Year ended June 30,
|  | 2023 |  | 2022 |  | 2021
Balance at beginning of period |  | $ | 155,392 |  |  | $ | 117,760 |  |  | $ | 95,137 |
Adjustment due to adoption of new accounting standard |  | — |  |  | — |  |  | 10,083 |
Provision for credit losses |  | 318,188 |  |  | 240,804 |  |  | 63,755 |
Charge-offs |  | (300,058) |  |  | (227,770) |  |  | (65,149) |
Recoveries of charged-off receivables |  | 31,009 |  |  | 24,598 |  |  | 13,934 |
Balance at end of period |  | $ | 204,531 |  |  | $ | 155,392 |  |  | $ | 117,760 |

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- 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 -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479319/326-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481962/310-10-50-29 + Details
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- 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 -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 + Details
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