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Loans Held for Investment and Allowance for Credit Losses (Tables)

9 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Schedule of Loans Held for Investment and Allowance for Credit Loss

Loans held for investment consisted of the following (in thousands):

						March 31, 2023						June 30, 2022
Unpaid principal balance						$	3,823,038					$	2,516,733
Accrued interest receivable						33,997						20,697
Premiums on loans held for investment						7,896						8,911
Less: Discount due to loss on loan purchase commitment						(45,368)						(20,692)
Less: Discount due to loss on directly originated loans						(43,486)						(20,443)
Less: Fair value adjustment on loans acquired through business combination						(535)						(1,645)
Total loans held for investment						$	3,775,542					$	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 (in thousands) as of March 31, 2023:

March 31, 2023
						Amortized Costs Basis by Fiscal Year of Origination
						2023						2022						2021						2020						2019						Prior						Total
96+						$	2,185,767					$	94,353					$	33,450					$	9,085					$	9					$	1					$	2,322,665
94-96						865,503						38,625						933						189						6						2						905,258
90-94						95,252						12,391						136						2						4						—						107,785
<90						16,786						2,795						6						2						—						—						19,589
No score(1)						288,923						78,840						16,835						1,518						288						15						386,419
Total amortized cost basis						$	3,452,231					$	227,004					$	51,360					$	10,796					$	307					$	18					$	3,741,716

(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. 

The following table presents net charge-offs by fiscal year of origination for the nine months ended (in thousands) as of March 31, 2023:

						Net Charge-offs by Fiscal Year of Origination
						2023						2022						2021						2020						2019						Prior						Total
Current period charge-offs						(59,228)						(161,934)						(6,115)						(509)						(74)						(26)						(227,886)
Current period recoveries						2,956						13,447						4,000						1,158						753						554						22,868
Current period net charge-offs						$	(56,272)					$	(148,487)					$	(2,115)					$	649					$	679					$	528					$	(205,018)

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 (in thousands) as of June 30, 2022:

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 new 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):

						March 31, 2023						June 30, 2022
Non-delinquent loans						$	3,587,516					$	2,322,919
4 – 29 calendar days past due						68,344						77,963
30 – 59 calendar days past due						32,591						34,669
60 – 89 calendar days past due						27,888						26,919
90 – 119 calendar days past due (1)						25,377						23,064
Total amortized cost basis						$	3,741,716					$	2,485,534

(1)Includes $24.6 million and $22.7 million of loan receivables as of March 31, 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):

						Three Months Ended March 31,												Nine Months Ended March 31,
						2023						2022						2023						2022
Balance at beginning of period						$	182,100					$	158,289					$	155,392					$	117,760
Provision for credit losses						61,480						62,021						225,962						172,720
Charge-offs						(75,820)						(67,280)						(227,886)						(145,307)
Recoveries of charged-off receivables						8,576						6,445						22,868						14,302
Balance at end of period						$	176,336					$	159,475					$	176,336					$	159,475

X

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Tabular disclosure of allowance for credit loss on financing receivable.

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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.

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