89,608

Stock withheld related to taxes on vested RSUs (in shares)

3,945,698

(1,533,724)

(28,603)

2,203,794

3,365

Issuance of contingently issuable stock (in shares)

(20,047)

1,281,132

Conversion of redeemable preferred stock warrants into permanent equity

161,775

Conversion of redeemable preferred stock to common stock (in shares)

450,832,666

Conversion of redeemable preferred stock to common stock

2,702,569

$ 45

2,702,524

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)

Change in par for historical SoFi common stock

0

$ 12

(12)

(342,878)

Ending balance (in shares) at Jun. 30, 2021

(346)

794,692,813

Ending balance at Jun. 30, 2021

$ 4,207,390

$ 79

5,249,878

(512)

(1,042,055)

Temporary equity, beginning balance (in shares) at Dec. 31, 2020

469,150,522

Temporary equity, beginning balance at Dec. 31, 2020

$ 3,173,686

Increase (Decrease) in Temporary Equity [Roll Forward]

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)

(15,000,000)

Temporary equity, ending balance (in shares) at Jun. 30, 2021

$ (150,000)

3,234,000

Temporary equity, ending balance at Jun. 30, 2021

$ 320,374

Beginning balance (in shares) at Mar. 31, 2021

119,018,914

Beginning balance at Mar. 31, 2021

(293,638)

$ 0

583,349

(246)

(876,741)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

52,154

Stock withheld related to taxes on vested RSUs (in shares)

291,264

(134,008)

(2,614)

523,956

741

Issuance of contingently issuable stock (in shares)

(10,079)

1,281,132

Conversion of redeemable preferred stock warrants into permanent equity

161,775

Conversion of redeemable preferred stock to common stock (in shares)

450,832,666

Conversion of redeemable preferred stock to common stock

2,702,569

$ 45

2,702,524

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)

Change in par for historical SoFi common stock

0

$ 12

(12)

(165,314)

Ending balance (in shares) at Jun. 30, 2021

(266)

794,692,813

Ending balance at Jun. 30, 2021

$ 4,207,390

$ 79

5,249,878

(512)

(1,042,055)

Temporary equity, beginning balance (in shares) at Mar. 31, 2021

469,150,522

Temporary equity, beginning balance at Mar. 31, 2021

$ 3,173,686

Increase (Decrease) in Temporary Equity [Roll Forward]

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)

(15,000,000)

Temporary equity, ending balance (in shares) at Jun. 30, 2021

$ (150,000)

3,234,000

Temporary equity, ending balance at Jun. 30, 2021

$ 320,374

Beginning balance (in shares) at Dec. 31, 2021

828,154,462

Beginning balance at Dec. 31, 2021

$ 4,377,329

$ 83

5,561,831

(1,471)

(1,183,114)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

167,519

Stock withheld related to taxes on vested RSUs (in shares)

11,312,098

Vesting of RSUs

0

$ 1

(1)

(662,462)

$ (5,846)

(5,846)

1,442,890

Issuance of common stock in acquisition (in shares)

$ 2,060

2,060

81,856,112

Issuance of common stock in acquisition

875,042

$ 8

875,034

Vested awards assumed in acquisition

2,855

(20,047)

(206,192)

Ending balance (in shares) at Jun. 30, 2022

$ (6,540)

(6,540)

922,103,100

Ending balance at Jun. 30, 2022

$ 5,186,180

$ 92

6,583,405

(8,011)

(1,389,306)

Temporary equity, beginning balance (in shares) at Dec. 31, 2021

3,234,000

Temporary equity, beginning balance at Dec. 31, 2021

^[1]

$ 320,374

Temporary equity, ending balance (in shares) at Jun. 30, 2022

3,234,000

Temporary equity, ending balance at Jun. 30, 2022

^[1]

$ 320,374

Beginning balance (in shares) at Mar. 31, 2022

915,673,855

Beginning balance at Mar. 31, 2022

5,210,299

$ 91

6,509,643

(5,964)

(1,293,471)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

85,902

Stock withheld related to taxes on vested RSUs (in shares)

6,360,894

Vesting of RSUs

0

$ 1

(1)

(318,764)

(2,253)

387,115

193

(10,079)

(95,835)

Ending balance (in shares) at Jun. 30, 2022

$ (2,047)

(2,047)

922,103,100

Ending balance at Jun. 30, 2022

$ 5,186,180

$ 92

$ 6,583,405

$ (8,011)

$ (1,389,306)

Temporary equity, beginning balance (in shares) at Mar. 31, 2022

3,234,000

Temporary equity, beginning balance at Mar. 31, 2022

$ 320,374

Temporary equity, ending balance (in shares) at Jun. 30, 2022

3,234,000

Temporary equity, ending balance at Jun. 30, 2022

^[1]

$ 320,374

[1]	Redemption amount is $323,400 as of June 30, 2022 and December 31, 2021.

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Operating activities

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

$ (206,192)

$ (342,878)

Depreciation and amortization

68,754

50,966

Deferred debt issuance and discount expense

8,118

11,450

Fair value changes in residual interests classified as debt

157,163

89,608

Deferred income taxes

(2,319)

637

5,625

13,668

Fair value changes in securitization investments

9,981

(5,502)

Fair value changes in warrant liabilities

0

160,909

Fair value adjustment to related party notes receivable

0

(169)

Other

29,929

(3,937)

Changes in operating assets and liabilities:

Originations and purchases of loans

(6,875,281)

(5,749,363)

Proceeds from sales and repayments of loans

4,846,705

5,848,655

Other changes in loans

22,166

5,231

Servicing assets

(8,705)

(10,170)

0

1,399

Other assets

(49,569)

(21,752)

Accounts payable, accruals and other liabilities

36,902

33,856

Net cash provided by (used in) operating activities

(1,956,723)

82,608

Investing activities

Purchases of property, equipment, software and intangible assets

(50,028)

(26,808)

Purchases of available-for-sale investments

(44,974)

0

Proceeds from sales of available-for-sale investments

23,497

0

Proceeds from maturities and paydowns of available-for-sale investments

13,906

0

Changes in loans, net

(81,850)

0

Proceeds from non-securitization investments

0

107,534

Proceeds from securitization investments

75,991

141,920

Acquisition of businesses, net of cash acquired

58,540

0

Proceeds from repayment of related party notes receivable

0

16,693

Net cash provided by (used in) investing activities

(4,918)

239,339

Financing activities

Proceeds from debt issuances

4,710,980

3,849,645

Repayment of debt

(4,986,952)

(6,355,653)

Payment of debt issuance costs

(3,976)

(4,520)

Net change in deposits

2,496,253

0

(5,846)

(28,603)

Proceeds from stock option exercises

2,060

3,365

Payment of redeemable preferred stock dividends

(20,047)

Finance lease principal payments

(241)

(278)

Purchases of common stock

0

(526)

Redemptions of redeemable common and preferred stock

0

(282,859)

Proceeds from Business Combination and PIPE Investment

0

1,989,851

Payment of costs directly attributable to the issuance of common stock in connection with Business Combination and PIPE Investment

0

(26,951)

Net cash provided by (used in) financing activities

2,192,231

(876,576)

Effect of exchange rates on cash and cash equivalents

(94)

(346)

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

230,496

(554,975)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

768,437

1,323,428

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

998,933

768,453

Reconciliation to amounts on unaudited condensed consolidated balance sheets (as of period end)

Cash and cash equivalents

707,302

461,920

Restricted cash and restricted cash equivalents

291,631

^[1]

306,533

Total cash, cash equivalents, restricted cash and restricted cash equivalents

998,933

768,453

Supplemental non-cash investing and financing activities

Issuance of common stock in acquisition

875,042

0

Vested awards assumed in acquisition

2,855

0

Loans received in acquisition

84,485

0

Debt assumed in acquisition

2,000

0

Deposits assumed in acquisition

158,016

0

Deposits credited but not yet received in cash

57,995

0

Available-for-sale securities received in acquisition

10,014

0

Property, equipment and software received in acquisition

3,192

0

Non-cash loan reduction

886

0

Share-based compensation capitalized related to internally-developed software

10,356

0

Non-cash property, equipment, software and intangible asset additions

191

896

Deferred debt issuance costs accrued but unpaid

163

550

Securitization investments acquired via loan transfers

0

47,265

Costs directly attributable to the issuance of common stock paid in 2020

0

588

Reduction to temporary equity associated with purchase price adjustments

0

743

Warrant liabilities recognized in conjunction with the Business Combination

0

200,250

Series H warrant liabilities conversion to common stock warrants

0

39,959

Conversion of temporary equity into permanent equity in conjunction with the Business Combination

$ 0

$ 2,702,569

[1]	Financial statement line items include amounts in consolidated variable interest entities (“VIEs”). See Note 5.(2)As of June 30, 2022 and December 31, 2021, includes loans held for sale measured at fair value of $7,959,382 and $5,952,972, respectively.

Organization, Summary of Significant Accounting Policies and New Accounting Standards

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Summary of Significant Accounting Policies and New Accounting Standards

Organization

Social Finance, Inc. (“Social Finance”) entered into a merger agreement (the “Agreement”) with Social Capital Hedosophia Holdings Corp. V (“SCH”) on January 7, 2021. The transactions contemplated by the terms of the Agreement were completed on May 28, 2021 (the “Closing”), in conjunction with which SCH changed its name to SoFi Technologies, Inc. (hereafter referred to, collectively with its subsidiaries, as “SoFi”, the “Company”, “we”, “us” or “our”, unless the context otherwise requires). The transactions contemplated in the Agreement are collectively referred to as the “Business Combination.”

Upon the closing of the Business Combination, holders of Social Finance common stock received shares of SoFi Technologies common stock in an amount determined by application of the exchange ratio of 1.7428 (“Exchange Ratio”), which was based on Social Finance’s implied price per share prior to the Business Combination. Additionally, holders of Social Finance preferred stock (with the exception of the holders of our Series 1 Redeemable Preferred Stock, as defined in Note 10) received shares of SoFi Technologies common stock in amounts determined by application of either the Exchange Ratio or a multiplier of the Exchange Ratio, as provided by the Agreement.

SoFi is a financial services platform that was founded in 2011 to offer an innovative approach to the private student loan market by providing student loan refinancing options. The Company conducts its business through three reportable segments: Lending, Technology Platform and Financial Services. Since its founding, SoFi has expanded its lending strategy to offer home loans, personal loans and credit cards. The Company has also developed non-lending financial products, such as money management and investment product offerings, and has also leveraged its financial services platform to empower other businesses. The Company has continued to expand its product offerings through strategic acquisitions. During 2020, the Company expanded its investment product offerings into Hong Kong 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. For additional information on our recent business combinations, see Note 2. For additional information on our reportable segments, see Note 17.

Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and certain consolidated VIEs. All intercompany accounts were eliminated in consolidation. The unaudited condensed consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the SEC. We condensed or omitted certain notes and other financial information from the interim financial statements presented herein. The financial data and other information disclosed in these Notes to Unaudited Condensed Consolidated Financial Statements related to the three and six months ended June 30, 2022 and 2021 are unaudited and should be read in conjunction with the annual consolidated statements included in our annual filing on Form 10-K filed with the SEC on March 1, 2022. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the Company’s financial condition and results of operations and cash flows for the interim periods presented. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022. In our unaudited condensed consolidated statements of operations and comprehensive income (loss), we renamed the financial statement line item for noninterest income—technology platform fees to noninterest income—technology products and solutions to accommodate noninterest income earned from Technisys, which we acquired in the first quarter of 2022. See Note 1 for our presentation of disaggregated revenue and Note 2 for our discussion of business combinations.

Use of Judgments, Assumptions and Estimates

The preparation of our unaudited condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the amounts reported in our unaudited condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of our assets and liabilities. These judgments, assumptions and estimates include, but are not limited to, the following: (i) fair value measurements; (ii) share-based compensation expense; (iii) consolidation of variable interest entities; and (iv) business combinations. These judgments, estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions.

Cash and Cash Equivalents

Cash and cash equivalents primarily include unrestricted deposits with financial institutions in checking, money market and short-term certificate of deposit accounts and certain short-term commercial paper. We consider all highly liquid investments with original maturity dates of three months or less to be cash equivalents.

Restricted Cash and Restricted Cash Equivalents

Restricted cash and restricted cash equivalents consist primarily of cash deposits, certificate of deposit accounts held on reserve, money market funds held by consolidated VIEs, and collection balances. These accounts are earmarked as restricted because the balances are either member balances held in our custody, cash segregated for regulatory purposes associated with brokerage activities, escrow requirements for certain debt facilities and derivative agreements, deposits required by various bank holding companies we partner with (“Member Banks”) that support one or more of our products, loan collection balances awaiting disbursement, consolidated VIE cash balances that we cannot use for general operating purposes, or other legally restricted balances.

Loans

Our loan portfolio consists of (i) personal loans, student loans and home loans, which are held for sale and measured at fair value, and (ii) credit card loans, and commercial and consumer banking loans, which are measured at amortized cost. The commercial and consumer banking portfolio is primarily inclusive of commercial real estate loans, commercial and industrial loans and residential real estate and other consumer loans.

Loans Measured at Fair Value

Loans that we intend to sell to third-party purchasers or for which we do not have the ability and intent to hold for the foreseeable future are classified as held for sale. We elected the fair value option to measure our personal loans, student loans and home loans, as we believe that fair value best reflects the expected economic performance of the loans, as well as our intentions given our gain-on-sale origination model. Therefore, these loans are carried at fair value on a recurring basis. All direct fees and costs related to the origination process are recognized in earnings as earned or incurred. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). We record cash flows related to loans held for sale within cash flows from operating activities in the unaudited condensed consolidated statements of cash flows.

Securitized loans are assets held by consolidated special purpose entities (“SPE”) as collateral for bonds issued, for which fair value changes are recorded within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Gains or losses recognized upon deconsolidation of a VIE are also recorded within noninterest income—securitizations.

Loans Measured at Amortized Cost

For our loans measured at amortized cost, direct loan origination costs are deferred and amortized on a straight-line basis over the privilege period (12 months) for credit card loans and amortized using the effective interest method over the contractual term of the loans for commercial and consumer banking loans, within interest income—loans in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three and six months ended

June 30, 2022, we amortized $2,088 and $3,685, respectively, of deferred costs into interest income and had a remaining balance of deferred costs of $4,600 as of June 30, 2022.

Commercial and consumer banking loans are reported as delinquent when they become 30 or more days past due. For all commercial and consumer banking loans, we stop accruing interest and reverse all accrued but unpaid interest after 90 days of delinquency. For consumer banking loans, delinquent loans are charged off after 120 days of delinquency or on the date of confirmed loss.

Purchased Credit Deteriorated Assets

In connection with the Bank Merger, as further discussed in Note 2, we obtained purchased credit deteriorated (“PCD”) loans. PCD loans are acquired financial assets (or groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination. Indicators that an acquired asset may meet the definition of a PCD asset include days past due status, nonaccrual status, troubled debt restructuring status and other loan agreement violations. We were required to record an allowance for the acquired PCD loans, with a corresponding increase to the amortized cost basis as of the acquisition date. Recognition of the initial allowance for credit losses upon the acquisition of PCD loans does not impact net income. Changes in estimates of expected credit losses after acquisition are recognized through the provision for credit losses. See Note 7 for the rollforward of our allowance for credit losses.

Troubled Debt Restructuring

In connection with the Bank Merger, as further discussed in Note 2, we obtained troubled debt restructuring (“TDR”) loans. TDR loans are those for which the contractual terms have been restructured to grant one or more concessions to a borrower who is experiencing financial difficulty. Concessions may include several types of assistance to aid customers and maximize payments received, and vary by borrower-specific characteristics. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs. TDRs identified by Golden Pacific prior to the acquisition were recorded at fair value with a new accounting basis established as of the date of acquisition. There were no modifications subsequent to acquisition.

Allowance for Credit Losses

As of June 30, 2022, we applied ASC 326, Financial Instruments—Credit Losses (“ASC 326”), to the following: (i) cash equivalents and restricted cash equivalents, (ii) accounts receivable from contracts with customers, inclusive of servicing related receivables, (iii) margin receivables, which were attributable to our activities at 8 Limited, (iv) certain loan repurchase reserves representing guarantees of credit exposure, (v) loans measured at amortized cost, including credit card, and commercial and consumer banking loans acquired during the first quarter of 2022, and (vi) investments in available-for-sale debt securities. Our approaches to measuring the allowance for credit losses are disclosed in our Annual Report on Form 10-K.

See Note 7 for a rollforward of the allowance for credit losses.

Investments in Available-For-Sale Debt Securities

An allowance for credit losses on our investments in available-for-sale (“AFS”) debt securities is required for any portion of impaired securities that is attributable to credit-related factors. As of June 30, 2022, we concluded that the credit-related impairment was immaterial. We did not recognize an allowance for credit losses on impaired investments in AFS debt securities as of June 30, 2022.

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 our unaudited condensed 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 in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Restricted Investments

Subsequent to operating SoFi Bank, we have investments in Federal Reserve Bank (“FRB”) stock and Federal Home Loan Bank (“FHLB”) stock, which are restricted investment securities that are not marketable. These investments are presented within other assets in our unaudited condensed consolidated balance sheets and are carried at cost and reviewed for impairment if indicators of impairment exist at the reporting date.

Equity Method Investments

In August 2021, we purchased a 5% interest in Lower Holding Company (“Lower”) for $20,000 and were granted a seat on Lower’s board of directors. We accounted for the investment under the equity method of accounting. The investment was not deemed to be significant under either Regulation S-X, Rule 3-09 or Rule 4-08(g).

In January 2022, we relinquished our seat on Lower’s board of directors, and have no further rights to a seat on Lower’s board of directors. As such, we no longer have significant influence over the investee, and we ceased recognizing Lower equity investment income subsequent to that date. Our equity method investment income for the six months ended June 30, 2022 was immaterial. Additionally, we did not receive any distributions during the six months ended June 30, 2022. As of June 30, 2022, our investment was presented within other assets in the unaudited condensed consolidated balance sheets and was measured using the measurement alternative method of accounting, which is further discussed in Note 8.

Property, Equipment and Software

Software includes software acquired in business combinations, purchased software and capitalized software development costs. The capitalization of software development costs is based on whether the software is for internal use, or is to be sold or otherwise marketed. Costs related to internally-developed software for internal use are capitalized when preliminary project efforts are successfully completed, and it is probable that both the project will be completed and the software will be used as intended. For software to be sold or marketed, development costs are capitalized after the technological feasibility of the software has been established. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts and costs incurred for upgrades and functionality enhancements. Research and development costs incurred prior to the establishment of technological feasibility (for software to be sold or marketed) or prior to completion of preliminary project efforts (for internal use software) are expensed as incurred.

Deposits

We commenced offering deposit accounts (referred to as “SoFi Checking and Savings” accounts) to our members through SoFi Bank in the first quarter of 2022. Our interest-bearing deposits primarily consist of demand deposits, savings deposits and, to a lesser extent, time deposits. We also have noninterest-bearing deposits.

The following table presents a detail of interest-bearing deposits as of the date indicated:


	June 30, 2022
Interest-bearing deposits:
Demand deposits(1)	$	1,561,339
Savings deposits(1)	1,049,650
Time deposits	18,474
Total interest-bearing deposits	$	2,629,463

_____________________

(1) For deposit liabilities with no defined maturities, the fair value of the liabilities reflects the amount payable on demand at the reporting date.

As of June 30, 2022, the amount of time deposits that exceeded the insured limit (referred to as “uninsured deposits”) totaled $10,969. As of June 30, 2022, future maturities of our total time deposits were as follows:


Remainder of 2022	$	13,842
2023	3,565
2024	654
2025	30
2026	281
Thereafter	102
Total	$	18,474

Derivative Financial Instruments

The following table presents the gains (losses) recognized on our derivative instruments during the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Derivative contracts to manage future loan sale execution risk(1)	$	69,535	$	(13,937)	$	230,142	$	22,134
Derivative contracts to manage securitization investment interest rate risk(1)(2)	2,749		—		9,068		—
Interest rate lock commitments (“IRLCs”)(1)	4,159		642		(2,639)		(7,860)
Interest rate caps(1)	(903)		—		(3,027)		—
Purchase price earn-out(1)	211		—		1,042		—

Third-party warrants(3)	(244)		—		(169)		—

Total	$	75,507	$	(13,295)	$	234,417	$	14,274

_____________________

(1) Recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

(2) Represents derivative instruments utilized to manage interest rate risk associated with certain of our securitization investments.

(3) For the three and six months ended June 30, 2022, includes $(461) and $(603), respectively, recorded within noninterest income—other and $217 and $434, respectively, recorded within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss), the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired of $964, as we are also a customer of the third party.

The following table presents information about derivative instruments subject to enforceable master netting arrangements as of the dates indicated:


	June 30, 2022				December 31, 2021
	Gross Derivative Assets		Gross Derivative Liabilities		Gross Derivative Assets		Gross Derivative Liabilities
Interest rate swaps	$	—	$	(21,762)	$	5,444	$	—
Interest rate caps	—		(3,695)		—		(668)
Home loan pipeline hedges	2,243		(259)		117		(313)

Total, gross	$	2,243	$	(25,716)	$	5,561	$	(981)
Derivative netting	(1,371)		1,371		(117)		117
Total, net(1)	$	872	$	(24,345)	$	5,444	$	(864)

_____________________

(1) As of June 30, 2022 and December 31, 2021, we had a cash collateral requirement of $21,762 and $299, respectively, related to these instruments.

The following table presents the notional amounts of derivative contracts outstanding as of the dates indicated:


	June 30, 2022		December 31, 2021
Derivative contracts to manage future loan sale execution risk:
Interest rate swaps	$	5,360,000	$	4,210,000
Home loan pipeline hedges	326,000		421,000
Interest rate caps	405,000		405,000

Interest rate swaps(1)	310,000		—
IRLCs(2)	314,096		357,529
Interest rate caps(3)	405,000		405,000
Total	$	7,120,096	$	5,798,529

_____________________

(1) Represents interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments.

(2) Amounts correspond with home loan funding commitments subject to IRLC agreements.

(3) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk.

While the notional amounts of derivative instruments give an indication of the volume of our derivative activity, they do not necessarily represent amounts exchanged by parties and are not a direct measure of our financial exposure.

See Note 8 for additional information on our derivative assets and liabilities.

Safeguarding Asset and Liability

Through our SoFi Invest product (via our wholly-owned subsidiary, SoFi Digital Assets, LLC, a licensed money transmitter), our members can invest in digital assets. We engage third parties to provide custodial services for our digital assets offering, which includes 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. We currently utilize two third-party custodians. Therefore, we have concentration risk in the event the custodian is not able to perform in accordance with our agreement.

In accordance with Staff Accounting Bulletin No. 121 (“SAB 121”), which is further discussed under “Recently Adopted Accounting Standards” in this Note 1, we recognize a digital assets safeguarding liability within accounts payable, accruals and other liabilities in our unaudited condensed 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 in our unaudited condensed consolidated balance sheets. The safeguarding liability and corresponding safeguarding asset are measured and recorded at the fair value of the digital assets held by the custodians at each reporting date, as measured in accordance with ASC 820, Fair Value Measurement (“ASC 820”). Subsequent changes to the fair value measure are reflected as equal and offsetting adjustments to the carrying values of the safeguarding liability and corresponding safeguarding asset. We evaluate any potential loss events, such as theft, loss or destruction of the cryptographic keys, that may affect the measurement of the safeguarding asset, which would be reflected in our results of operations in the period the loss occurs. Measurement changes do not impact our unaudited condensed consolidated statements of operations and comprehensive income (loss) unless such a loss event is identified. As of June 30, 2022, we did not identify any loss events. See Note 8 for additional information on the fair value measurement of the safeguarding liability and corresponding safeguarding asset.

Foreign Currency Translation Adjustments

We revalue assets, liabilities, income and expense denominated in non-United States currencies into United States dollars using applicable exchange rates. For foreign subsidiaries in which the functional currency is the subsidiary’s local currency, gains and losses relating to foreign currency translation adjustments are included in accumulated other comprehensive loss in our unaudited condensed consolidated balance sheets. For foreign subsidiaries in which the functional currency is the United States Dollar, gains and losses relating to foreign currency transaction adjustments are included within earnings in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Due to the highly inflationary economic environment in Argentina, we use the United States Dollar as the functional currency of our Argentinian operations in accordance with ASC 830, Foreign Currency Matters. Our activities in Argentina are related to our Technology Platform segment and commenced in the first quarter of 2022 with the Technisys Merger.

Revenue Recognition

In accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”), in each of our revenue arrangements, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects our expected consideration in exchange for those goods or services. Our arrangements accounted for under ASC 606 are discussed in our Annual Report on Form 10-K, with notable updates provided herein.

Technology Products and Solutions

We earn fees for providing an integrated platform as a service for financial and non-financial institutions. Within our technology products and solutions fee arrangements, certain contracts contain a provision for a fixed, upfront implementation fee related to setup activities, which represents an advance payment for future technology platform services. In these arrangements, our implementation fees are recognized ratably over the contract life, as we consider the implementation fee partially earned each month that we meet our performance obligation over the life of the contract.

Commencing in March 2022 with the Technisys Merger, we earn subscription and service fees for providing software licenses and associated services. Software license and service arrangements comprise one or more software licenses, implementation, maintenance, and other software-related services. We recognize revenue related to software licenses upon delivery of the license, as we consider the license to be satisfied at a point in time. Software is considered delivered when control passes to the customer following the user-acceptance testing period.

We charge a recurring subscription fee for the software license and related maintenance services. Other software-related services are billed on a periodic basis as the services are provided. Certain arrangements for software and related services contain a provision for a fixed upfront payment, which in some cases may provide a material right to the customer with respect to the start and renewal of the subscription. Fees charged are part of the transaction price and are allocated to the performance obligations on a relative standalone selling price basis, as follows:

•The standalone selling price of maintenance varies in proportion with the standalone selling price of the underlying license. We allocate the subscription fee between the license and maintenance based upon this proportion. We recognize the maintenance fees ratably over the maintenance period, as we stand ready to provide maintenance services during the period.

•Non-maintenance software-related services fees are recognized over the period during which the services are provided, as we consider these services to be satisfied over time. We use an input model based on hours incurred to provide the services, which directly correspond with the value to which the customer is entitled.

•If a contract contains a substantive upfront payment that creates a material right to subscribe or renew a subscription, the upfront payment is allocated to the material right and is recognized over the period of benefit associated with the right to subscribe or renew a subscription, typically the product life.

We had deferred revenues of $7,602 and $2,553 as of June 30, 2022 and December 31, 2021, respectively, which are presented within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets. During the three and six months ended June 30, 2022, we recognized revenue of $1,989 and $2,774, respectively, associated with deferred revenues within noninterest income—technology products and solutions in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three and six months ended June 30, 2021, we recognized revenue of $182 and $338, respectively, associated with deferred revenues.

Sales commissions: Capitalized sales commissions presented within other assets in the unaudited condensed consolidated balance sheets, which are incurred in connection with obtaining our technology products and solutions, were $1,087 and $678 as of June 30, 2022 and December 31, 2021, respectively. Additionally, we incur ongoing monthly commissions, which are expensed as incurred, as the benefit of such sales efforts are realized only in the period in which the commissions are earned. During the three and six months ended June 30, 2022, commissions recorded within noninterest expense—sales and marketing in the unaudited condensed consolidated statements of operations and comprehensive income (loss) were $1,096 and $2,217, respectively, of which $107 and $189, respectively, represented amortization of capitalized sales

commissions. During the three and six months ended June 30, 2021, commissions were $961 and $1,770, respectively, of which $79 and $143, respectively, represented amortization of capitalized sales commissions.

Referrals

We earn specified referral fees in connection with referral activities we facilitate through our platform. This arrangement contains variable consideration that is constrained due to the potential reversal of referral fulfillment fees. We recognize a liability within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets for the estimated referral fulfillment fee penalty, which represents the amount of consideration received that we estimate will reverse. The liability was $522 and $118 as of June 30, 2022 and December 31, 2021, respectively.

Contract Balances

As of June 30, 2022 and December 31, 2021, accounts receivable, net associated with revenue from contracts with customers were $60,562 and $33,748, respectively, which were reported within other assets in the unaudited condensed consolidated balance sheets. The increase in contract balances during the current period includes the effect of the Technisys Merger, which contributed $18,192 to the balance as of June 30, 2022.

Disaggregated Revenue

The table below presents revenue from contracts with customers disaggregated by type of service, which best depicts how the revenue and cash flows are affected by economic factors, and by the reportable segment to which each revenue stream relates. Revenues from contracts with customers are presented within noninterest income—technology products and solutions and noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). There were no revenues from contracts with customers attributable to our Lending segment for any of the periods presented.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Financial Services
Referrals	$	8,805	$	3,140	$	16,573	$	5,394
Brokerage	4,156		7,054		8,886		11,666
Payment network	3,007		1,473		7,293		2,675
Equity capital markets services	—		1,760		—		1,760
Enterprise services	225		2,696		428		2,754
Total	$	16,193	$	16,123	$	33,180	$	24,249
Technology Platform
Technology services	$	81,111	$	44,950	$	140,268	$	90,609
Software licenses	558		—		1,258		—
Payment network	558		379		736		821
Total	$	82,227	$	45,329	$	142,262	$	91,430
Total Revenue from Contracts with Customers
Technology services	$	81,111	$	44,950	$	140,268	$	90,609
Software licenses	558		—		1,258		—
Referrals	8,805		3,140		16,573		5,394
Brokerage	4,156		7,054		8,886		11,666
Payment network	3,565		1,852		8,029		3,496
Equity capital markets services	—		1,760		—		1,760
Enterprise services	225		2,696		428		2,754
Total	$	98,420	$	61,452	$	175,442	$	115,679

Recently Adopted Accounting Standards

In October 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, rather than at fair value. The standard should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We early adopted the standard effective January 1, 2022 and applied its provisions to our acquisitions in 2022. The adoption of this standard did not have a material impact on our consolidated financial statements.

In March 2022, the SEC released SAB 121, which provides interpretive guidance for an entity to consider when it has obligations to safeguard crypto-assets held for its platform users, whether directly or through an agent or another third party acting on its behalf. SAB 121 requires an entity to record a liability to reflect its obligation to safeguard the crypto-assets, as well as a corresponding safeguarding asset, both of which should be measured at the fair value of the crypto-assets being safeguarded for the entity’s users. Entities should evaluate any potential loss events, such as theft, loss or destruction of the cryptographic keys, that may affect the measurement of the asset. SAB 121 also requires financial statement disclosure, including the nature and amount of crypto-assets that the entity holds for its users, any vulnerabilities that may arise as a result of any concentration in crypto-assets, and information about who is responsible for the record-keeping of the crypto-assets, the holding of the cryptographic keys and safeguarding the crypto-assets, among other disclosure considerations. Disclosures must also be made in accordance with ASC 820. SAB 121 was effective for us for the interim period ending June 30, 2022. We applied the guidance through retrospective application as of January 1, 2022, at which time the value of our members’ digital assets was $266,014. As of June 30, 2022, the adoption date, the value of our members’ digital assets was $112,010, which is reflected as a digital assets safeguarding liability and corresponding digital assets safeguarding asset within accounts payable, accruals and other liabilities and other assets, respectively, in our unaudited condensed consolidated balance sheets. Our application of this guidance did not impact our results of operations. We also enhanced our disclosures around our digital assets arrangements and our role in safeguarding them. See Note 1 and Note 8 for the applicable disclosures.

Recent Accounting Standards Issued, But Not Yet Adopted

In March 2022, the FASB issued ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU addresses two topics: (i) TDR by creditors, and (ii) vintage disclosures for gross write offs. Under the TDR provisions, the ASU eliminates the recognition and measurement guidance under ASC 310-40, Receivables — Troubled Debt Restructurings by Creditors, and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan, consistent with the accounting for other loan modifications. Additionally, the ASU enhances existing disclosure requirements around TDRs and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Under the vintage disclosure provisions, the ASU requires the entity to disclose current period gross write offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20, Financial Instruments — Credit Losses — Measured at Amortized Cost. The standard is effective for fiscal years and interim periods beginning after December 15, 2022. Early adoption is permitted. If an entity elects to early adopt this standard in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt either of the two topics separately, or both. The standard should be applied prospectively; however, for the TDR provisions, an entity has the option to apply a modified retrospective transition method. We are currently evaluating the effect of adopting this standard on our consolidated financial statements and related disclosures.

Business Combinations

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combinations

Acquisition of Golden Pacific Bancorp, Inc.

On February 2, 2022, we acquired Golden Pacific Bancorp, Inc., a bank holding company, and its wholly-owned subsidiary, which is a national bank (collectively referred to as “Golden Pacific”), pursuant to an Agreement and Plan of Merger dated as of March 8, 2021 by and among the Company, a wholly-owned subsidiary of the Company, and Golden Pacific. In the business combination, we acquired all of the outstanding equity interests in Golden Pacific for total cash purchase consideration of $22.3 million (the “Bank Merger”). After closing the Bank Merger, we became a bank holding company and Golden Pacific began operating as SoFi Bank, National Association (“SoFi Bank”). We are duly registered as a bank holding company with the Board of Governors of the Federal Reserve System (the “Federal Reserve”). SoFi Bank is a national banking association whose primary federal regulator is the Office of the Comptroller of the Currency (the “OCC”).

Deposit accounts of SoFi Bank are insured by the Federal Deposit Insurance Corporation (the “FDIC”) through the Deposit Insurance Fund to the fullest extent permitted by law.

The closing of the Bank Merger was subject to regulatory approval. On January 18, 2022, we received approval from the Federal Reserve of our application to become a bank holding company under the Bank Holding Company Act, and we received conditional approval from the OCC to close the Bank Merger. The OCC also approved our application to change the composition of Golden Pacific’s assets in connection with the Bank Merger. The OCC conditional approval imposed a number of conditions, including that SoFi Bank have initial paid-in capital of no less than $750 million and adhere to an operating agreement. Golden Pacific’s community bank business continues to operate as a division of SoFi Bank.

A portion of the total cash purchase consideration ($0.6 million) was held back by the Company to satisfy any indemnification or certain other obligations (“Holdback Amount”), as certain legal proceedings with which Golden Pacific is involved as a plaintiff were not resolved at the time the Bank Merger closed. The Holdback Amount will be used for further financing or costs incurred associated with the litigation, which we began incurring during the second quarter of 2022, and the remaining amount upon resolution of the litigation, if any, will be released to the Golden Pacific shareholders. Additionally, we held back a $3.3 million payable to a dissenting Golden Pacific shareholder pending resolution of the shareholder’s appraisal claim, which could possibly result in a lower or higher amount paid to the dissenting shareholder once a ruling is made regarding the appraisal claim.

The Bank Merger was accounted for as a business combination. The preliminary purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on the estimated fair values as of the acquisition date, which were measured in accordance with the principles outlined in ASC 820. The excess of the total purchase consideration over the fair value of the net assets acquired of $11.2 million was allocated to goodwill, none of which is expected to be deductible for tax purposes, and which is allocated to our Financial Services segment. Goodwill is primarily attributable to the expected benefits of operating a national bank. The results of operations of Golden Pacific are included in SoFi’s consolidated financial statements as of and for the three and six months ended June 30, 2022. As the acquisition was not determined to be a significant acquisition under ASC 805, Business Combinations, we are not disclosing the pro forma impact of this acquisition to the results of operations in our interim and annual filings with the SEC.

Identifiable intangible net assets at the date of acquisition included finite-lived intangible assets for core deposits with an aggregate fair value of $1.0 million. The intangible assets are being amortized over a period of 7.3 years based on the estimated economic life of the underlying assets.

We incurred total acquisition-related costs related to the Bank Merger of $2.2 million, which were incurred during the three months ended March 31, 2021, and are presented within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Acquisition of Technisys S.A.

On March 3, 2022, we acquired Technisys S.A., a Luxembourg société anonyme (“Technisys”), pursuant to an Agreement and Plan of Merger dated as of February 19, 2022 and amended as of March 3, 2022, by and among the Company, Technisys, Atom New Delaware, Inc., a Delaware corporation and a wholly owned subsidiary of Atom, and Atom Merger Sub Corporation, a Delaware corporation and wholly owned subsidiary of SoFi Technologies (“Technisys Merger”). In the business combination, we acquired all of the outstanding equity interests in Technisys. Technisys is a cloud-native digital and core banking platform with an existing footprint of financial services customers in Latin America. The Technisys Merger was accounted for as a business combination.

The following table presents the components of the purchase consideration to acquire Technisys:


Fair value of common stock issued(1)	$	875,042
Fair value of awards assumed(2)	2,855
Amounts payable to settle vested employee performance awards(3)	37,297
Settlement of pre-combination transactions between acquirer and acquiree	235
Total purchase consideration	$	915,429

___________________

(1) Reflects the shares of SoFi common stock issued upon closing the acquisition of 81,856,112, inclusive of 6,903,663 shares held in escrow, multiplied by the closing stock price of SoFi common stock on the closing date of the Technisys Merger. As of June 30, 2022, the purchase price allocation process for Technisys was not finalized, as further discussed below.

(2) We contemporaneously converted outstanding performance awards into restricted stock units (“RSUs”) to acquire common stock of SoFi (“Replacement Awards”). The fair value of awards assumed in the purchase consideration was based on the closing stock price of SoFi common stock on the closing date of the Technisys Merger. Refer to Note 12 for additional information on our RSUs, including the Replacement Awards.

(3) We made payments of $14,773 and $17,641 related to this component of purchase consideration during the three and six months ended June 30, 2022, respectively.

As of June 30, 2022, the equity component of the total purchase consideration remained subject to further adjustment, pending final agreement regarding a closing net working capital calculation specified in the merger agreement. Any further adjustment to the equity consideration, which may increase or decrease by up to 598,068 shares, would similarly impact the carrying value of recognized goodwill, but would not impact the estimated fair values of the assets acquired and liabilities assumed in conjunction with the transaction.

The following table presents the allocation of the preliminary total purchase consideration to the estimated fair values of the identified assets acquired and liabilities assumed of Technisys as of the date of acquisition, as well as measurement period adjustments reflected in the second quarter of 2022, which also impacted the amount of goodwill:


	Preliminary Purchase Price Allocation		Measurement Period Adjustments(1)		Updated Purchase Price Allocation
Assets acquired
Cash and cash equivalents	$	25,710	$	—	$	25,710
Accounts receivable(2)	15,354		(2,303)		13,051
Intangible assets(3)	239,000		—		239,000
Operating lease right-of-use (“ROU”) assets	587		—		587
Other assets	1,011		2,361		3,372
Total identifiable assets acquired	281,662		58		281,720
Liabilities assumed
Accounts payable, accruals and other liabilities	16,462		7,500		23,962
Operating lease liabilities	587		—		587
Deferred income taxes(4)	55,104		2,239		57,343
Total liabilities assumed	72,153		9,739		81,892
Total identified net assets acquired	209,509		(9,681)		199,828
Goodwill(5)	705,920		9,681		715,601
Total consideration	$	915,429	$	—	$	915,429

_________________

(1)The measurement period adjustments did not have a significant impact on our results of operations. The adjustment to accounts payable, accruals and other liabilities includes a tax payable adjustment of $6,548.

(2)Included accounts receivable and unbilled revenue with a gross contractual amount of $15,407. At the date of acquisition, the Company expected $2,356 to be uncollectible.

(3)Intangible assets consist of finite-lived intangible assets, as follows:


	Gross carrying amount		Weighted-average useful life (years)
Developed technology(a)	$	187,000	8.8
Customer-related(b)	42,000		4.8
Trade names, trademarks and domain names(c)	10,000		8.8

__________________

(a) Valued using the Multi-Period Excess Earnings Method (“MPEEM”), which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset (and include an assumed technology migration curve), contributory asset charges and the applicable tax rate, and (ii) an assumed discount rate, which reflects the risk of the asset relative to the overall risk of Technisys.

(b) Valued using the With and Without Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual revenues and net cash flows both with the existing customer base and without the existing customer base, which include assumptions regarding revenue ramp-up periods and attrition rates, and (ii) an assumed discount rate, consistent with (a) above.

(c) Valued using the Relief from Royalty Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset, the probability of use of the asset, the royalty rate and the applicable tax rate, and (ii) the discount rate, consistent with (a) above.

(4)The deferred tax liabilities recognized in the acquisition were primarily related to the acquired intangible assets, in which the acquiree had a significantly lower tax basis compared to the fair value.

(5)The excess of the total purchase consideration over the fair value of the identified net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. The goodwill is subject to additional changes based on the outcome of the net working capital calculation referenced earlier in this footnote. Goodwill is primarily attributable to expected growth opportunities at Technisys, and secondarily attributable to the expected synergies from leveraging the Technisys technology to enhance and expand Galileo’s product offerings and operations, as well as expand its market reach. As such, all of the goodwill is allocated to the Technology Platform segment.

The Company incurred total acquisition-related costs related to the Technisys Merger of $20.6 million, of which $3.3 million were incurred during the year ended December 31, 2021, and $17.3 million were incurred during the six months ended June 30, 2022, which were presented within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

From the date of acquisition through June 30, 2022, the acquired results of operations for Technisys contributed total net revenue of $26.5 million and net loss of $9.4 million to the Company’s consolidated results, which was inclusive of amortization expense recognized on the acquired intangible assets.

The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations for the three months ended June 30, 2021, and six months ended June 30, 2022 and 2021 as if the business combination had occurred on January 1, 2021:


	Three Months Ended June 30,		Six Months Ended June 30,
	2021		2022		2021
Total net revenue	$	248,149	$	703,775	$	457,252
Net loss	(172,431)		(197,369)		(373,368)

The unaudited supplemental pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the actual results of operations that would have been achieved, nor is it indicative of future results of operations. The unaudited supplemental pro forma financial information reflects pro forma adjustments that give effect to applying the Company’s accounting policies and certain events the Company believes to be directly attributable to the acquisition. The pro forma adjustments primarily include:

•incremental straight-line amortization expense associated with acquired intangible assets;

•an adjustment to reflect post-combination share-based compensation expense associated with the Replacement Awards as if the conversion had occurred on January 1, 2021;

•an adjustment to reflect acquisition-related costs for both parties as if they were incurred during the earliest period presented; and

•the related income tax effects, at the statutory tax rate applicable for each period, of the pro forma adjustments noted above.

The unaudited supplemental pro forma financial information does not give effect to any anticipated cost savings, operating efficiencies or other synergies that may be associated with the acquisition, or any estimated costs that have been or will be incurred by the Company to integrate the assets and operations of Technisys.

Goodwill

A rollforward of our goodwill balance is presented below as of the date indicated:


	June 30, 2022
Beginning balance	$	898,527
Less: accumulated impairment	—
Beginning balance, net	898,527
Additional goodwill recognized(1)	726,848

Ending balance(2)	$	1,625,375

_____________________

(1) The additional goodwill recognized as of June 30, 2022 includes $715,601 related to the Technisys Merger (inclusive of a measurement period adjustment in the second quarter of 2022) and $11,247 related to the Bank Merger.

(2) As of June 30, 2022, we had goodwill attributable to the following reportable segments: $1,588,216 to Technology Platform and $37,159 to Financial Services.

Investments in AFS Debt Securities

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investments in AFS Debt Securities

In the third quarter of 2021, we began investing in debt securities. As of June 30, 2022 and December 31, 2021, all of our investments in debt securities were classified as available-for-sale. During the first quarter of 2022, we acquired additional investments in AFS debt securities with the Bank Merger. The following table presents our investments in AFS debt securities as of the dates indicated:


	June 30, 2022
	Amortized Cost(1)		Accrued Interest		Gross Unrealized Gains		Gross Unrealized Losses(2)		Fair Value
Investments in AFS debt securities(3):
U.S. Treasury securities	$	121,284	$	151	$	—	$	(3,249)	$	118,186
Multinational securities(4)	19,785		109		—		(692)		19,202
Corporate bonds	42,125		256		—		(2,477)		39,904

Agency mortgage-backed securities	9,650		24		—		(731)		8,943
Other asset-backed securities	9,583		5		—		(466)		9,122

Other(5)	2,741		21		—		(186)		2,576
Total investments in AFS debt securities	$	205,168	$	566	$	—	$	(7,801)	$	197,933

	December 31, 2021
	Amortized Cost		Accrued Interest		Gross Unrealized Gains		Gross Unrealized Losses(2)		Fair Value
Investments in AFS debt securities(3):
U.S. Treasury securities	$	103,014	$	73	$	—	$	(584)	$	102,503
Multinational securities(4)	19,911		109		—		(154)		19,866
Corporate bonds	39,894		235		—		(480)		39,649
Agency TBA(6)	7,457		13		4		(8)		7,466
Agency mortgage-backed securities	4,153		14		—		(31)		4,136
Other asset-backed securities	9,610		5		—		(91)		9,524
Commercial paper	9,939		—		—		—		9,939
Other(5)	1,818		13		—		(7)		1,824
Total investments in AFS debt securities	$	195,796	$	462	$	4	$	(1,355)	$	194,907

_____________________

(1) Amortized cost basis reflects the amortization of premiums of $186 and $477 during the three and six months ended June 30, 2022, respectively.

(2) As of June 30, 2022 and December 31, 2021, we determined that our unrealized loss positions related to credit losses were immaterial. Additionally, we do not intend to sell the securities in loss positions nor is it more likely than not that we will be required to sell the securities prior to recovery of the amortized cost basis. Further, no such investments have been in a continuous unrealized loss position for more than 12 months.

(3) Investments in AFS debt securities are recorded at fair value.

(4) Includes sovereign foreign and supranational bonds.

(5) Includes state and city municipal bond securities.

(6) Represented to-be-announced (“TBA”) securities, which were securities that were delivered under the purchase contract at a later date when the underlying security was issued. The December 31, 2021 balance was paid in cash during 2022.

The following table presents the amortized cost and fair value of our investments in AFS debt securities by contractual maturity as of the date indicated:


	Due Within One Year			Due After One Year Through Five Years			Due After Five Years Through Ten Years			Due After Ten Years			Total
June 30, 2022
Investments in AFS debt securities—Amortized cost:
U.S. Treasury securities	$	45,021		$	76,263		$	—		$	—		$	121,284
Multinational securities	3,942			15,843			—			—			19,785
Corporate bonds	328			38,441			3,356			—			42,125

Agency mortgage-backed securities	—			104			678			8,868			9,650
Other asset-backed securities	—			7,600			1,983			—			9,583

Other	600			1,207			—			934			2,741
Total investments in AFS debt securities	$	49,891		$	139,458		$	6,017		$	9,802		$	205,168
Weighted average yield for investments in AFS debt securities(1)	(1.19)		%	(4.49)		%	(4.73)		%	(22.78)		%	(4.57)		%

Investments in AFS debt securities—Fair value(2):
U.S. Treasury securities	$	43,986		$	74,049		$	—		$	—		$	118,035
Multinational securities	3,841			15,252			—			—			19,093
Corporate bonds	318			36,158			3,172			—			39,648

Agency mortgage-backed securities	—			98			630			8,191			8,919
Other asset-backed securities	—			7,224			1,893			—			9,117

Other	598			1,174			—			783			2,555
Total investments in AFS debt securities	$	48,743		$	133,955		$	5,695		$	8,974		$	197,367

_____________________

(1) The weighted average yield represents the effective yield for the investment securities and is computed based on the amortized cost of each security as of June 30, 2022.

(2) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $566 as of June 30, 2022.

The following table presents the gross proceeds and gross realized gains and losses from sales, maturities and paydowns of our investments in AFS debt securities during the three and six months ended June 30, 2022. Realized gains and losses are presented within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). There were no transfers between classifications of our investments in AFS debt securities during the periods presented.


	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Investments in AFS debt securities
Gross realized gains included in earnings	$	—	$	—
Gross realized losses included in earnings	(124)		(285)
Net realized losses	(124)		(285)
Gross proceeds from sales, maturities and paydowns(1)	$	7,788	$	37,403

_____________________

(1) Proceeds from maturities and paydowns of investments in AFS debt securities during the three and six months ended June 30, 2022 were $1,942 and $13,906, respectively.

See Note 11 for unrealized gains and losses on our investments in AFS debt securities and amounts reclassified out of accumulated other comprehensive income (loss) (“AOCI”).

Loans

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Loans

As of June 30, 2022, our loan portfolio consisted of personal loans, student loans and home loans, which are measured at fair value under the fair value option election, and loans measured at amortized cost, including credit card, and commercial and consumer banking loans. Below is a disaggregated presentation of our loans, inclusive of fair market value adjustments and accrued interest income and net of the allowance for credit losses, as applicable, as of the dates indicated:


	June 30,		December 31,
	2022		2021
Loans at fair value
Securitized student loans	$	466,865	$	574,328
Securitized personal loans	132,133		234,576
Student loans	3,247,510		2,876,509
Home loans	135,262		212,709
Personal loans	3,977,612		2,054,850
Total loans at fair value	7,959,382		5,952,972
Loans at amortized cost(1)
Credit card	173,867		115,912
Commercial and consumer banking:
Commercial real estate	67,742		—
Commercial and industrial	8,097		—
Residential real estate and other consumer	3,406		—
Total commercial and consumer banking	79,245		—

Total loans at amortized cost	253,112		115,912
Total loans	$	8,212,494	$	6,068,884

_____________________

(1) Amounts are presented net of the allowance for credit losses. See Note 1 for additional information on our loans at amortized cost as it pertains to the allowance for credit losses pursuant to ASC 326.

Loans Measured at Fair Value

The following table summarizes the aggregate fair value of our loans measured at fair value on a recurring basis as of the dates indicated:


	Student Loans		Home Loans		Personal Loans		Total
June 30, 2022
Unpaid principal(1)	$	3,657,693	$	142,118	$	3,943,768	$	7,743,579
Accumulated interest	9,601		159		23,055		32,815
Cumulative fair value adjustments(1)	47,081		(7,015)		142,922		182,988
Total fair value of loans	$	3,714,375	$	135,262	$	4,109,745	$	7,959,382
December 31, 2021
Unpaid principal(1)	$	3,356,344	$	210,111	$	2,188,773	$	5,755,228
Accumulated interest	9,990		190		12,310		22,490
Cumulative fair value adjustments(1)	84,503		2,408		88,343		175,254
Total fair value of loans	$	3,450,837	$	212,709	$	2,289,426	$	5,952,972

__________________

(1) These items are impacted by charge-offs during the period.

The following table summarizes the aggregate fair value of loans 90 days or more delinquent as of the dates indicated. As delinquent personal loans and student loans are charged off after 120 days of delinquency, amounts presented below represent the fair value of loans that are 90 to 120 days delinquent. There were no home loans that were 90 days or more delinquent as of the dates presented.


	Student Loans		Personal Loans		Total
June 30, 2022
Unpaid principal	$	1,372	$	8,260	$	9,632
Accumulated interest	18		304		322
Cumulative fair value adjustments	(733)		(7,266)		(7,999)
Fair value of loans 90 days or more delinquent	$	657	$	1,298	$	1,955
December 31, 2021
Unpaid principal	$	1,589	$	4,765	$	6,354
Accumulated interest	32		149		181
Cumulative fair value adjustments	(865)		(4,189)		(5,054)
Fair value of loans 90 days or more delinquent	$	756	$	725	$	1,481

The following table presents the changes in our loans measured at fair value on a recurring basis:


	Student Loans		Home Loans		Personal Loans		Total
Three Months Ended June 30, 2022
Fair value as of March 31, 2022	$	3,737,439	$	146,658	$	3,118,788	$	7,002,885
Origination of loans	398,722		332,047		2,471,849		3,202,618
Principal payments	(167,049)		(701)		(461,178)		(628,928)
Sales of loans	(259,690)		(342,780)		(1,123,898)		(1,726,368)
Purchases(1)	5,274		330		67,189		72,793
Change in accumulated interest	(139)		(23)		5,162		5,000
Change in fair value(2)	(182)		(269)		31,833		31,382
Fair value as of June 30, 2022	$	3,714,375	$	135,262	$	4,109,745	$	7,959,382

Three Months Ended June 30, 2021
Fair value as of March 31, 2021	$	2,666,793	$	231,903	$	1,573,908	$	4,472,604
Origination of loans	859,497		792,228		1,294,384		2,946,109
Principal payments	(235,889)		(1,280)		(247,808)		(484,977)
Sales of loans	(610,941)		(841,642)		(970,135)		(2,422,718)
Purchases(1)	44,779		422		103,538		148,739
Change in accumulated interest	(403)		17		(153)		(539)
Change in fair value(2)	15,657		665		9,808		26,130
Fair value as of June 30, 2021	$	2,739,493	$	182,313	$	1,763,542	$	4,685,348

Six Months Ended June 30, 2022
Fair value as of January 1, 2022	$	3,450,837	$	212,709	$	2,289,426	$	5,952,972
Origination of loans	1,382,526		644,430		4,497,853		6,524,809
Principal payments	(394,164)		(5,101)		(833,632)		(1,232,897)
Sales of loans	(803,840)		(708,150)		(2,101,818)		(3,613,808)
Purchases(1)	121,707		828		227,937		350,472
Change in accumulated interest	(389)		(31)		10,745		10,325
Change in fair value(2)	(42,302)		(9,423)		19,234		(32,491)
Fair value as of June 30, 2022	$	3,714,375	$	135,262	$	4,109,745	$	7,959,382

Six Months Ended June 30, 2021
Fair value as of January 1, 2021	$	2,866,459	$	179,689	$	1,812,920	$	4,859,068
Origination of loans	1,864,182		1,527,832		2,100,073		5,492,087
Principal payments	(486,108)		(2,759)		(506,007)		(994,874)
Sales of loans	(1,547,101)		(1,519,208)		(1,749,576)		(4,815,885)
Purchases(1)	44,850		541		104,539		149,930
Change in accumulated interest	(1,652)		(18)		(2,340)		(4,010)
Change in fair value(2)	(1,137)		(3,764)		3,933		(968)
Fair value as of June 30, 2021	$	2,739,493	$	182,313	$	1,763,542	$	4,685,348

__________________

(1) Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three and six months ended June 30, 2022 included securitization clean-up calls of $60,240 and $335,739, respectively. Additionally, during the three and six months ended June 30, 2022, the Company elected to purchase $7,290 and $7,290, respectively, of previously sold loans from certain investors. Purchase activity during the three and six months ended June 30, 2021 included securitization clean-up calls of $131,372 and $131,372, respectively. Additionally, during the three and six months ended June 30, 2021, the Company elected to purchase $15,185 and $15,185, respectively, of previously sold loans from certain investors. The Company was not required to buy back these loans. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements.

(2) Changes in fair value of loans are recorded in the unaudited condensed consolidated statements of operations and comprehensive income (loss) within noninterest income—loan origination and sales for loans held on the balance sheet prior to transfer to a third party through a sale or to a VIE and within noninterest income—securitizations for loans in a consolidated VIE. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were $23,221 and $16,725 during the three and six months ended June 30, 2022, respectively, and $9,038 and $2,111 during the three and six months ended June 30, 2021, respectively. The 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.

Loans Measured at Amortized Cost

Loan Portfolio Composition and Aging

The following table presents the amortized cost basis of our credit card and commercial and consumer banking portfolios (excluding accrued interest and before the allowance for credit losses) by either current status or delinquency status as of the dates indicated:


			Delinquent Loans
	Current		30–59 Days		60–89 Days		≥ 90 Days(1)		Total Delinquent Loans		Total Loans(2)
June 30, 2022
Credit card	$	177,732	$	3,570	$	3,105	$	8,417	$	15,092	$	192,824
Commercial and consumer banking:
Commercial real estate	68,479		—		—		—		—		68,479
Commercial and industrial	8,299		7		—		—		7		8,306
Residential real estate and other consumer(3)	3,417		—		—		—		—		3,417
Total commercial and consumer banking	80,195		7		—		—		7		80,202
Total loans	$	257,927	$	3,577	$	3,105	$	8,417	$	15,099	$	273,026

December 31, 2021
Credit card	$	115,356	$	1,893	$	1,683	$	2,658	$	6,234	$	121,590

_______________

(1)All of the credit card loans ≥ 90 days past due continued to accrue interest. As of June 30, 2022 and December 31, 2021, there were no credit card loans on nonaccrual status. As of June 30, 2022, commercial and consumer banking loans on nonaccrual status were immaterial, and there were no loans that were 90 days or more past due.

(2)For credit card, the balance is presented before allowance for credit losses of $21,974 and $7,037 as of June 30, 2022 and December 31, 2021, respectively, and accrued interest of $3,017 and $1,359, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,204 and accrued interest of $247 as of June 30, 2022.

(3)Includes residential real estate loans acquired in the Bank Merger, 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) as of the dates indicated based on FICO scores, which are obtained at the origination of the account, and are updated as new credit information is available. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data.


FICO	June 30, 2022		December 31, 2021
≥ 800	$	9,560	$	10,016
780 – 799	8,388		8,624
760 – 779	9,882		9,976
740 – 759	12,289		13,581
720 – 739	16,471		18,358
700 – 719	22,579		22,579
680 – 699	26,430		21,736
660 – 679	26,513		14,044
640 – 659	19,889		1,969
< 640	40,823		707
Total credit card	$	192,824	$	121,590

Commercial and Consumer Banking

We evaluate the credit quality of our commercial and consumer banking loan portfolio on a quarterly basis based on regulatory risk ratings. Loans are categorized into risk ratings based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. We analyze loans individually by classification based on their associated credit risk, and perform an analysis on an ongoing basis as new information is obtained. Risk rating classifications are further described below. Loans with a lower expectation of credit losses are classified as Pass, while loans with a higher expectation of credit losses are classified as Substandard.

•Pass — Loans that management believes will fully repay in accordance with the contractual loan terms.

•Watch — Loans that management believes will fully repay in accordance with the contractual loan terms, but for which certain credit attributes have changed from origination and warrant further monitoring.

•Special mention — Loans with a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or our credit position at some future date.

•Substandard — Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the full repayment. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

The following table presents the amortized cost basis of our commercial and consumer banking portfolio (excluding accrued interest and before the allowance for credit losses) by origination year and credit quality indicator as of June 30, 2022:


	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Total Term Loans		Revolving Loans
Commercial real estate
Pass	$	8,987	$	5,811	$	7,680	$	9,413	$	5,692	$	16,364	$	53,947	$	206
Watch	1,246		1,703		—		2,064		2,146		2,959		10,118		—
Special mention	—		—		—		687		2,263		413		3,363		—
Substandard	—		—		—		—		—		845		845		—
Total commercial real estate	$	10,233	$	7,514	$	7,680	$	12,164	$	10,101	$	20,581	$	68,273	$	206
Commercial and industrial
Pass	$	—	$	15	$	113	$	—	$	103	$	5,093	$	5,324	$	367
Watch	—		—		—		136		—		355		491		26
Special mention	—		—		—		—		—		757		757		—
Substandard	—		—		—		234		165		942		1,341		—
Total commercial and industrial	$	—	$	15	$	113	$	370	$	268	$	7,147	$	7,913	$	393
Residential real estate and other consumer
Pass	$	—	$	—	$	—	$	—	$	—	$	3,307	$	3,307	$	69
Watch	—		—		—		—		—		41		41		—


Total residential real estate and other consumer	$	—	$	—	$	—	$	—	$	—	$	3,348	$	3,348	$	69
Total commercial and consumer banking	$	10,233	$	7,529	$	7,793	$	12,534	$	10,369	$	31,076	$	79,534	$	668

Variable Interest Entities

6 Months Ended

Jun. 30, 2022

Variable Interest Entities

Consolidated VIEs

The Company consolidates certain securitization trusts in which we have a variable interest and are deemed to be the primary beneficiary.

The VIEs are SPEs with portfolio loans securing debt obligations. The SPEs were created and designed to transfer credit and interest rate risk associated with consumer loans through the issuance of collateralized notes and trust certificates. The Company makes standard representations and warranties to repurchase or replace qualified portfolio loans. Aside from these representations, the holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying portfolio loans securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. We hold a significant interest in these financing transactions through our ownership of a portion of the residual interest in certain VIEs. In addition, in some cases, we invest in the debt obligations issued by the VIE. Our investments in consolidated VIEs eliminate in consolidation. The residual interest is the first VIE interest to absorb losses should the loans securing the debt obligations not provide adequate cash flows to satisfy more senior claims and is the interest that we expect to absorb the expected gains and losses of the VIE. The Company’s exposure to credit risk in sponsoring SPEs is limited to our investment in the VIE. VIE creditors have no recourse against our general credit.

As of June 30, 2022 and December 31, 2021, we had 12 and 13 consolidated VIEs, respectively, on our unaudited condensed consolidated balance sheets. The following table presents the assets and liabilities of consolidated VIEs that were included in our unaudited condensed consolidated balance sheets. The assets in the below table may only be used to settle

obligations of consolidated VIEs and were in excess of those obligations as of the dates presented. Additionally, the assets and liabilities in the table below exclude intercompany balances, which eliminate upon consolidation.


	June 30,		December 31,
	2022		2021
Assets:
Restricted cash and restricted cash equivalents	$	32,449	$	53,161
Loans	598,998		808,904
Total assets	$	631,447	$	862,065
Liabilities:
Accounts payable, accruals and other liabilities	$	314	$	388
Debt(1)	508,012		660,419
Residual interests classified as debt	54,436		93,682
Total liabilities	$	562,762	$	754,489

___________________

(1)Debt is presented net of debt issuance costs and debt premiums (discounts).

Nonconsolidated VIEs

We have created and designed personal loan and student loan trusts to transfer associated credit and interest rate risk associated with the loans through the issuance of collateralized notes and residual certificates. We have a variable interest in the nonconsolidated loan trusts, as we own collateralized notes and residual certificates in the loan trusts that absorb variability. We also have continuing, non-controlling involvement with the trusts as the servicer. As servicer, we have the power to perform the activities which most impact the economic performance of the VIE, but since we hold an insignificant financial interest in the trusts, we are not the primary beneficiary. We define an insignificant financial interest as less than 10% of the expected gains and losses of the VIE. This financial interest represents the equity ownership interest in the loan trusts, wherein there is an obligation to absorb losses and the right to receive benefits from residual certificate ownership. The maximum exposure to loss as a result of our involvement with the nonconsolidated VIEs is limited to our investment. There are no liquidity arrangements, guarantees or other commitments by third parties that may affect the fair value or risk of our variable interests in nonconsolidated VIEs.

Personal Loans

As of June 30, 2022 and December 31, 2021, we had investments in eight and nine nonconsolidated personal loan VIEs, respectively. We did not establish any personal loan trusts during the six months ended June 30, 2022 and established one personal loan trust during the six months ended June 30, 2021.

We did not provide financial support to any personal loan trusts beyond our initial equity investment and we did not deconsolidate any personal loan VIEs during the six months ended June 30, 2022 and 2021.

Student Loans

As of each of June 30, 2022 and December 31, 2021, we had investments in 24 nonconsolidated student loan VIEs. We did not establish any student loan trusts during the six months ended June 30, 2022 and established three student loan trusts during the six months ended June 30, 2021, which were not consolidated as of the balance sheet date.

We did not provide financial support to any student loan trusts beyond our initial equity investment during the periods presented. We deconsolidated one student loan VIE during the six months ended June 30, 2022. We did not deconsolidate any student loan VIEs during the six months ended June 30, 2021.

The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs as of the dates indicated:


	June 30,		December 31,
	2022		2021
Personal loans	$	42,238	$	62,925
Student loans	246,479		311,763
Securitization investments	$	288,717	$	374,688

Transfers of Financial Assets

6 Months Ended

Jun. 30, 2022

Transfers and Servicing [Abstract]

Transfers of Financial Assets

We regularly transfer financial assets and account for such transfers as either sales or secured borrowings depending on the facts and circumstances. When a transfer of financial assets qualifies as a sale, in many instances we have continued involvement as the servicer of those financial assets. As we expect the benefits of servicing to be more than just adequate, we recognize a servicing asset. Further, in the case of securitization-related transfers that qualify as sales, we have additional continued involvement as an investor, albeit at insignificant levels relative to the expected gains and losses of the securitization. In instances where a transfer is accounted for as a secured borrowing, we perform servicing (but we do not recognize a servicing asset) and typically maintain a significant investment relative to the expected gains and losses of the securitization. In whole loan sales, we do not have a residual financial interest in the loans, nor do we have any other power over the loans that would constrain us from recognizing a sale. Additionally, we have no repurchase requirements related to transfers of personal loans, student loans and non-Federal National Mortgage Association (“FNMA”) home loans other than standard origination representations and warranties, for which we record a liability based on expected repurchase obligations. For FNMA home loans, we have customary FNMA repurchase requirements, which do not constrain sale treatment but result in a liability for the expected repurchase requirement.

The following table summarizes our student and personal loan securitization transfers qualifying for sale accounting treatment for the three and six months ended June 30, 2021. There were no loan securitization transfers qualifying for sale accounting treatment during the three and six months ended June 30, 2022.


	Three Months Ended June 30,		Six Months Ended June 30,
	2021		2021
Student loans
Fair value of consideration received:
Cash	$	196,223	$	696,264
Securitization investments	10,403		36,784

Servicing assets recognized	2,370		31,101
Total consideration	208,996		764,149
Aggregate unpaid principal balance and accrued interest of loans sold	200,379		726,505
Gain from loan sales	$	8,617	$	37,644









Personal loans
Fair value of consideration received:
Cash	$	198,491	$	198,491
Securitization investments	10,481		10,481

Servicing assets recognized	1,238		1,238
Total consideration	210,210		210,210
Aggregate unpaid principal balance and accrued interest of loans sold	200,806		200,806
Gain from loan sales	$	9,404	$	9,404

The following table summarizes our whole loan sales during the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Student loans
Fair value of consideration received:
Cash	$	257,859	$	425,369	$	806,770	$	847,710
Servicing assets recognized	2,991		3,740		8,815		8,598
Repurchase liabilities recognized	(41)		(79)		(121)		(158)
Total consideration	260,809		429,030		815,464		856,150
Aggregate unpaid principal balance and accrued interest of loans sold	261,324		412,222		807,611		825,312
Gain (loss) from loan sales	$	(515)	$	16,808	$	7,853	$	30,838

Home loans
Fair value of consideration received:
Cash	$	322,219	$	856,317	$	681,919	$	1,552,514
Servicing assets recognized	4,482		9,367		8,720		15,906
Repurchase liabilities recognized	(315)		(1,035)		(735)		(1,974)
Total consideration	326,386		864,649		689,904		1,566,446
Aggregate unpaid principal balance and accrued interest of loans sold	342,952		841,734		708,512		1,519,303
Gain (loss) from loan sales	$	(16,566)	$	22,915	$	(18,608)	$	47,143

Personal loans
Fair value of consideration received:
Cash	$	1,163,029	$	801,437	$	2,181,718	$	1,612,689
Servicing assets recognized	7,659		5,078		14,083		11,081
Repurchase liabilities recognized	(2,789)		(1,980)		(5,087)		(4,064)
Total consideration received	1,167,899		804,535		2,190,714		1,619,706
Aggregate unpaid principal balance and accrued interest of loans sold	1,129,237		773,194		2,111,092		1,555,723
Gain from loan sales	$	38,662	$	31,341	$	79,622	$	63,983

The following table presents information as of the dates indicated about the unpaid principal balances of transferred loans that are not recorded in our unaudited condensed consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements:


	Student Loans		Home Loans		Personal Loans		Total
June 30, 2022
Loans in repayment	$	8,911,840	$	4,971,034	$	5,291,541	$	19,174,415
Loans in-school/grace/deferment	39,721		—		—		39,721
Loans in forbearance	46,176		14,092		542		60,810
Loans in delinquency	102,946		8,565		100,602		212,113
Total loans serviced	$	9,100,683	$	4,993,691	$	5,392,685	$	19,487,059

December 31, 2021
Loans in repayment	$	9,852,957	$	4,575,001	$	5,138,299	$	19,566,257
Loans in-school/grace/deferment	37,949		—		—		37,949
Loans in forbearance	44,833		40,353		1,120		86,306
Loans in delinquency	112,885		7,465		75,275		195,625
Total loans serviced	$	10,048,624	$	4,622,819	$	5,214,694	$	19,886,137

The following table presents additional information during the periods indicated about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Student loans
Servicing fees collected	$	11,045	$	14,269	$	20,213	$	23,294
Charge-offs, net of recoveries(1)	9,192		4,651		17,412		7,704

Home Loans
Servicing fees collected	$	2,930	$	1,918	$	5,566	$	3,531


Personal Loans
Servicing fees collected	$	8,951	$	7,785	$	17,588	$	17,275
Charge-offs, net of recoveries(1)	23,908		28,359		41,046		66,176

Total
Servicing fees collected	$	22,926	$	23,972	$	43,367	$	44,100
Charge-offs, net of recoveries	33,100		33,010		58,458		73,880

_____________________

(1)Student loan and personal loan charge-offs, net of recoveries, are impacted by the timing of charge-off sales performed on behalf of the purchasers of our loans, which lower the net amount disclosed.

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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Allowance for Credit Losses

6 Months Ended

Jun. 30, 2022

Allowance for Credit Losses

Allowance for Credit LossesWe measure our allowance for credit losses on accounts receivable under ASC 326, which primarily relates to our Technology Platform segment, and on loans measured at amortized cost, including credit card as well as commercial and consumer banking loans acquired in the Bank Merger. Given our methods of collecting funds on servicing receivables, our historical experience of infrequent write offs, and that we have not observed meaningful changes in our counterparties’ abilities to pay, we determined that the future exposure to credit losses on servicing related receivables was immaterial.

The following table summarizes the activity in the balances of allowance for credit losses during the periods indicated:


	Accounts Receivable(1)		Credit Card(1)		Commercial and Consumer Banking(1)
Three Months Ended June 30, 2022
Balance at March 31, 2022	$	1,652	$	16,500	$	1,366
Provision for credit losses(2)	1,112		10,265		(162)

Write-offs charged against the allowance(3)	(44)		(4,791)		—
Balance at June 30, 2022	$	2,720	$	21,974	$	1,204

Three Months Ended June 30, 2021
Balance at March 31, 2021	$	919	$	171	$	—
Provision for credit losses(2)	645		526		—
Write-offs charged against the allowance	(334)		(6)		—
Balance at June 30, 2021	$	1,230	$	691	$	—

Six Months Ended June 30, 2022
Balance at December 31, 2021	$	2,292	$	7,037	$	—
Provision for credit losses(2)	521		22,242		822
Allowance for PCD loans(4)	—		—		382
Write-offs charged against the allowance(3)	(93)		(7,305)		—
Balance at June 30, 2022	$	2,720	$	21,974	$	1,204

Six Months Ended June 30, 2021
Balance at December 31, 2020	$	562	$	219	$	—
Provision for credit losses(2)	1,780		526		—
Write-offs charged against the allowance	(1,112)		(54)		—
Balance at June 30, 2021	$	1,230	$	691	$	—

_____________________

(1)Accounts receivable balances, net of allowance for credit losses, are presented within other assets in the unaudited condensed consolidated balance sheets. Credit card and commercial and consumer banking loans measured at amortized cost, net of allowance for credit losses, are presented within loans in the unaudited condensed consolidated balance sheets.

(2)The provision for credit losses on accounts receivable is presented within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three and six months ended June 30, 2022, recoveries of amounts previously reserved related to accounts receivable were $368 and $1,760, respectively. During the three and six months ended June 30, 2021, recoveries of amounts previously reserved related to accounts receivable were $199 and $746, respectively. The provision for credit losses on credit card and commercial and consumer banking loans is presented within noninterest expense—provision for credit losses. There were immaterial recoveries of credit card losses during the three and six months ended June 30, 2022 and 2021, and immaterial recoveries on the commercial and consumer banking portfolio through June 30, 2022.

(3)The increases in credit card write-offs charged against the allowance during the three and six months ended June 30, 2022 were commensurate with our increased loan portfolio combined with elevated loss rates.

(4)We measured a PCD allowance for the loans acquired in the Bank Merger upon acquisition, which resulted in a gross-up to the allowance for credit losses, but had no impact on earnings.

Credit card: Accrued interest receivables written off during the three and six months ended June 30, 2022 were $834 and $1,285, respectively. Accrued interest receivables written off during the three and six months ended June 30, 2021 were immaterial.

Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following tables summarize, by level within the fair value hierarchy, the carrying amounts and estimated fair values of our assets and liabilities (i) measured at fair value on a recurring basis, (ii) measured at fair value on a nonrecurring basis, or (iii) disclosed but not carried at fair value in the unaudited condensed consolidated balance sheets as of the dates presented:


	June 30, 2022
			Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents(1)	$	707,302	$	707,302	$	—	$	—	$	707,302
Restricted cash and restricted cash equivalents(1)	291,631		291,631		—		—		291,631
Investments in AFS debt securities(2)(4)	197,933		137,388		60,545		—		197,933
Loans at fair value(2)	7,959,382		—		—		7,959,382		7,959,382
Loans at amortized cost(1)	253,112		—		—		264,348		264,348
Servicing rights(2)	176,964		—		—		176,964		176,964
Asset-backed bonds(2)(5)	193,739		—		193,739		—		193,739
Residual investments(2)(5)	94,978		—		—		94,978		94,978

Non-securitization investments – other(3)	22,780		—		—		22,780		22,780
Third party warrants(2)(6)	766		—		—		766		766
Derivative assets(2)(7)(8)	2,243		2,243		—		—		2,243
Purchase price earn-out(2)(9)	625		—		—		625		625
IRLCs(2)(10)	1,120		—		—		1,120		1,120

Interest rate caps(2)(8)	3,987		—		3,987		—		3,987
Digital assets safeguarding asset(2)(11)	112,010		—		112,010		—		112,010
Total assets	$	10,018,572	$	1,138,564	$	370,281	$	8,520,963	$	10,029,808
Liabilities
Time deposits(1)	$	18,474	$	—	$	18,455	$	—	$	18,455
Debt(1)	3,723,561		783,600		2,556,006		—		3,339,606
Residual interests classified as debt(2)	54,436		—		—		54,436		54,436
Derivative liabilities(2)(7)(8)	25,716		259		25,457		—		25,716

Student loan commitments(2)(10)	254		—		—		254		254
Digital assets safeguarding liability(2)(11)	112,010		—		112,010		—		112,010
Total liabilities	$	3,934,451	$	783,859	$	2,711,928	$	54,690	$	3,550,477


	December 31, 2021
			Fair Value
	Carrying Value		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents(1)	$	494,711	$	494,711	$	—	$	—	$	494,711
Restricted cash and restricted cash equivalents(1)	273,726		273,726		—		—		273,726
Investments in AFS debt securities(2)(4)	194,907		129,835		65,072		—		194,907
Loans at fair value(2)	5,952,972		—		—		5,952,972		5,952,972
Loans at amortized cost(1)	115,912		—		—		118,412		118,412
Servicing rights(2)	168,259		—		—		168,259		168,259
Asset-backed bonds(2)(5)	253,669		—		253,669		—		253,669
Residual investments(2)(5)	121,019		—		—		121,019		121,019
Non-securitization investments – ETFs(2)	1,486		1,486		—		—		1,486
Non-securitization investments – other(3)	6,054		—		—		6,054		6,054
Third party warrants(2)(6)	1,369		—		—		1,369		1,369
Derivative assets(2)(7)(8)	5,444		—		5,444		—		5,444
Purchase price earn-out(2)(9)	4,272		—		—		4,272		4,272
IRLCs(2)(10)	3,759		—		—		3,759		3,759
Student loan commitments(2)(10)	2,220		—		—		2,220		2,220
Interest rate caps(2)(8)	493		—		493		—		493
Total assets	$	7,600,272	$	899,758	$	324,678	$	6,378,336	$	7,602,772
Liabilities
Debt(1)	$	3,947,983	$	1,240,560	$	2,807,253	$	—	$	4,047,813
Residual interests classified as debt(2)	93,682		—		—		93,682		93,682
Derivative liabilities(2)(7)(8)	864		196		668		—		864
Total liabilities	$	4,042,529	$	1,240,756	$	2,807,921	$	93,682	$	4,142,359

_____________________

(1)Disclosed but not carried at fair value. The carrying value of our debt is net of unamortized discounts and debt issuance costs. The fair value of our convertible notes issued in October 2021 was classified as Level 1, as it was based on an observable market quote. The fair values of our warehouse facility debt, revolving credit facility debt and credit card loans were based on market factors and credit factors specific to these financial instruments. The fair value of our securitization debt was valued using a discounted cash flow model, with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults and prepayments. The fair value of our commercial and consumer banking loans was determined using a discounted cash flow model with key inputs relating to the underlying contractual coupons, terms, discount rate and expectations for defaults. The carrying amounts of our cash and cash equivalents and restricted cash and restricted cash equivalents approximate their fair values due to the short-term maturities and highly liquid nature of these accounts. The fair value of our time-based deposits is estimated by a discounted cash flow method using rates currently offered for deposits of similar remaining maturities.

(2)Measured at fair value on a recurring basis.

(3)Measured at fair value on a nonrecurring basis.

(4)Investments in AFS debt securities were classified as Level 1 or Level 2. The Level 1 investments utilize quoted prices in actively traded markets. The Level 2 investments rely upon observable inputs other than quoted prices, dealer quotes in markets that are not active and implied pricing derived from new issuances of similar securities. See Note 3 for additional information.

(5)These assets represent the carrying value of our holdings in VIEs wherein we were not deemed the primary beneficiary. As we do not provide financial support beyond our initial equity investment, our maximum exposure to loss as a result of our involvement with nonconsolidated VIEs is limited to the investment amount. See Note 5 for additional information.

(6)The key unobservable assumption used in the fair value measurement of the third party warrants is the price of the stock underlying the warrants. The fair value is measured as the difference between the stock price and the strike price of the warrants. As the strike price is insignificant, we concluded that the impact of time value on the fair value measure was immaterial.

(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 for additional information.

(8)Derivative liabilities classified as Level 1 are based on broker quotes in active markets and represent economic hedges of either loans or securitization investment fair values. Interest rate swaps and interest rate caps are classified as Level 2, because these financial instruments do not trade in active markets with observable prices, but rely on observable inputs other than quoted prices. As of June 30, 2022, interest rate swaps and interest rate caps were valued using the overnight Secured Overnight Financing Rate (“SOFR”) curve and the implied volatilities suggested by the SOFR rate curve. As of December 31, 2021, interest rate swaps were valued using the three-month LIBOR swap yield 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, 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.

Loans

The following key unobservable assumptions were used in the fair value measurement of our loans as of the dates indicated:

June 30, 2022

December 31, 2021

Range

Weighted Average

Range

Weighted Average

Student loans

Conditional prepayment rate

16.9% – 25.3%

20.2%

16.5% – 26.3%

19.2%

Annual default rate

0.2% – 4.4%

0.4%

0.2% – 4.2%

0.4%

Discount rate

3.2% – 8.0%

3.6%

1.9% – 7.1%

2.9%

Home loans

Conditional prepayment rate

2.5% – 7.9%

7.3%

4.8% – 16.4%

12.4%

Annual default rate

0.1% – 0.4%

0.1%

0.1% – 0.2%

0.1%

Discount rate

4.5% – 13.0%

4.8%

2.5% – 13.0%

2.6%

Personal loans

Conditional prepayment rate

16.1% – 43.8%

19.1%

18.4% – 37.7%

20.5%

Annual default rate

4.3% – 35.1%

4.6%

4.2% – 30.0%

4.4%

Discount rate

5.1% – 9.4%

5.4%

3.9% – 7.0%

4.0%

The key assumptions included in the above table are defined as follows:

•Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

•Annual default rate — The annualized rate of borrowers who do not make loan payments on time. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

•Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the loans. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

See Note 4 for additional loan fair value disclosures.

Servicing Rights

Servicing rights for student loans and personal loans do not trade in an active market with readily observable prices. Similarly, home loan servicing rights infrequently trade in an active market. At the time of the underlying loan sale or the assumption of servicing rights, the fair value of servicing rights is determined using a discounted cash flow methodology based on observable and unobservable inputs. Management classifies servicing rights as Level 3 due to the use of significant unobservable inputs in the fair value measurement.

The following key unobservable inputs were used in the fair value measurement of our classes of servicing rights as of the dates presented:

June 30, 2022

December 31, 2021

Range

Weighted Average

Range

Weighted Average

Student loans

Market servicing costs

0.1% – 0.2%

0.1%

0.1% – 0.2%

0.1%

Conditional prepayment rate

15.1% – 23.3%

19.1%

15.2% – 25.6%

20.4%

Annual default rate

0.2% – 4.3%

0.4%

0.2% – 4.3%

0.4%

Discount rate

7.3% – 7.3%

7.3%

7.3% – 7.3%

7.3%

Home loans

Market servicing costs

0.1% – 0.1%

0.1%

0.1% – 0.1%

0.1%

Conditional prepayment rate

5.0% – 11.2%

5.2%

10.0% – 16.4%

11.5%

Annual default rate

0.1% – 0.1%

0.1%

0.1% – 0.2%

0.1%

Discount rate

8.0% – 8.0%

8.0%

7.5% – 7.5%

7.5%

Personal loans

Market servicing costs

0.2% – 1.3%

0.3%

0.2% – 1.1%

0.2%

Conditional prepayment rate

17.0% – 44.0%

25.1%

22.5% – 41.4%

26.0%

Annual default rate

3.3% – 7.0%

4.5%

3.2% – 7.0%

4.4%

Discount rate

7.3% – 7.3%

7.3%

7.3% – 7.3%

7.3%

The key assumptions included in the above table are defined as follows:

•Market servicing costs — The fee a willing market participant, which we validate through actual third-party bids for our servicing, would require for the servicing of student loans, home loans and personal loans with similar characteristics as those in our serviced portfolio. An increase in the market servicing cost, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

•Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

•Annual default rate — The annualized rate of default within the total serviced loan balance. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

•Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the servicing rights. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

The following table presents the estimated decrease to the fair value of our servicing rights as of the dates indicated if the key assumptions had each of the below adverse changes:


	June 30, 2022		December 31, 2021
Market servicing costs
2.5 basis points increase	$	(11,074)	$	(10,822)
5.0 basis points increase	(22,191)		(21,644)

Conditional prepayment rate
10% increase	$	(5,442)	$	(6,260)
20% increase	(10,780)		(12,031)

Annual default rate
10% increase	$	(215)	$	(205)
20% increase	(428)		(408)

Discount rate
100 basis points increase	$	(4,810)	$	(3,782)
200 basis points increase	(9,408)		(7,349)

The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. The effect on fair value of a variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the effect of an adverse variation in a particular assumption on the fair value of our servicing rights is calculated while holding the other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects.

The following table presents the changes in the Company’s servicing rights, which are measured at fair value on a recurring basis:


	Student Loans		Home Loans		Personal Loans		Total
Three Months Ended June 30, 2022
Fair value as of March 31, 2022	$	85,957	$	59,585	$	27,963	$	173,505
Recognition of servicing from transfers of financial assets	2,991		4,482		7,659		15,132
Servicing rights assumed from third parties	—		—		1,317		1,317
Derecognition of servicing via loan purchases	(31)		—		(146)		(177)
Change in valuation inputs or other assumptions	5,707		1,202		2,189		9,098
Realization of expected cash flows and other changes	(9,705)		(3,103)		(9,103)		(21,911)
Fair value as of June 30, 2022	$	84,919	$	62,166	$	29,879	$	176,964

Three Months Ended June 30, 2021
Fair value as of March 31, 2021	$	106,338	$	32,038	$	22,864	$	161,240
Recognition of servicing from transfers of financial assets	6,110		9,367		6,316		21,793

Derecognition of servicing via loan purchases	(392)		—		(188)		(580)
Change in valuation inputs or other assumptions	(387)		(1,783)		1,946		(224)
Realization of expected cash flows and other changes	(12,068)		(2,065)		(8,329)		(22,462)
Fair value as of June 30, 2021	$	99,601	$	37,557	$	22,609	$	159,767

Six Months Ended June 30, 2022
Fair value as of January 1, 2022	$	90,003	$	50,533	$	27,723	$	168,259
Recognition of servicing from transfers of financial assets	8,815		8,720		14,083		31,618
Servicing rights assumed from third parties	—		—		1,946		1,946
Derecognition of servicing via loan purchases	(1,072)		—		(515)		(1,587)
Change in valuation inputs or other assumptions	6,999		8,942		4,737		20,678
Realization of expected cash flows and other changes	(19,826)		(6,029)		(18,095)		(43,950)
Fair value as of June 30, 2022	$	84,919	$	62,166	$	29,879	$	176,964

Six Months Ended June 30, 2021
Fair value as of January 1, 2021	$	100,637	$	23,914	$	25,046	$	149,597
Recognition of servicing from transfers of financial assets	39,699		15,906		12,319		67,924

Derecognition of servicing via loan purchases	(392)		—		(188)		(580)
Change in valuation inputs or other assumptions	(16,115)		1,546		2,236		(12,333)
Realization of expected cash flows and other changes	(24,228)		(3,809)		(16,804)		(44,841)
Fair value as of June 30, 2021	$	99,601	$	37,557	$	22,609	$	159,767

Asset-Backed Bonds

The fair value of asset-backed bonds is determined using a discounted cash flow methodology. Management classifies asset-backed bonds as Level 2 due to the use of quoted prices for similar assets in markets that are not active, as well as certain factors specific to us. The following key inputs were used in the fair value measurement of our asset-backed bonds as of the dates indicated:

June 30, 2022

December 31, 2021

Discount rate (range)

1.6% – 5.0%

0.6% – 3.7%

Conditional prepayment rate (range)

19.4% – 33.0%

19.5% – 32.2%

As of the dates indicated, the fair value of our asset-backed bonds was not materially impacted by default assumptions on the underlying securitization loans, as the subordinate residual interests are expected to absorb all estimated losses based on our default assumptions for the respective periods.

Residual Investments and Residual Interests Classified as Debt

Residual investments and residual interests classified as debt do not trade in active markets with readily observable prices, and there is limited observable market data for reference. The fair values of residual investments and residual interests classified as debt are determined using a discounted cash flow methodology. Management classifies residual investments and residual interests classified as debt as Level 3 due to the use of significant unobservable inputs in the fair value measurements.

The following key unobservable inputs were used in the fair value measurements of our residual investments and residual interests classified as debt as of the dates indicated:

June 30, 2022

December 31, 2021

Range

Weighted Average

Range

Weighted Average

Residual investments

Conditional prepayment rate

19.2% – 35.6%

21.6%

19.5% – 33.6%

23.0%

Annual default rate

0.3% – 5.3%

0.9%

0.3% – 5.7%

0.9%

Discount rate

3.9% – 10.5%

5.4%

2.6% – 10.5%

4.4%

Residual interests classified as debt

Conditional prepayment rate

19.1% – 50.7%

30.2%

20.0% – 41.8%

31.5%

Annual default rate

0.5% – 5.8%

2.7%

0.5% – 5.6%

3.2%

Discount rate

6.0% – 9.5%

6.4%

5.0% – 9.5%

5.7%

The key assumptions included in the above table are defined as follows:

•Conditional prepayment rate — The monthly annualized proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period for the pool of loans in the securitization. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

•Annual default rate — The annualized rate of borrowers who fail to remain current on their loans for the pool of loans in the securitization. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

•Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the residual investments and residual interests classified as debt. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement. The weighted average assumption was weighted based on relative fair value.

The following table presents the changes in the residual investments and residual interests classified as debt, which are both measured at fair value on a recurring basis. We record changes in fair value within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively.


	Residual Investments		Residual Interests Classified as Debt
Three Months Ended June 30, 2022
Fair value as of March 31, 2022	$	106,677	$	70,532

Change in valuation inputs or other assumptions(1)	290		2,662
Payments	(11,989)		(18,758)
Fair value as of June 30, 2022	$	94,978	$	54,436

Three Months Ended June 30, 2021
Fair value as of March 31, 2021	$	150,961	$	114,882
Additions	11,787		2,170
Change in valuation inputs or other assumptions(1)	3,355		5,717
Payments	(23,003)		(10,224)
Fair value as of June 30, 2021	$	143,100	$	112,545

Six Months Ended June 30, 2022
Fair value as of January 1, 2022	$	121,019	$	93,682

Change in valuation inputs or other assumptions(1)	1,052		5,625
Payments(2)	(27,093)		(44,871)
Fair value as of June 30, 2022	$	94,978	$	54,436

Six Months Ended June 30, 2021
Fair value as of January 1, 2021	$	139,524	$	118,298
Additions	38,168		2,170
Change in valuation inputs or other assumptions(1)	6,852		13,668
Payments(2)	(41,444)		(21,591)
Fair value as of June 30, 2021	$	143,100	$	112,545

___________________

(1)For residual investments, the estimated amounts of gains and losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented.

(2)Payments of residual investments included residual investment sales of $220 and $220 during the three and six months ended June 30, 2022, respectively, and $2,676 and $2,676 during the three and six months ended June 30, 2021, respectively.

Loan Commitments

We classify student loan commitments as Level 3 because the assets do not trade in an active market with readily observable prices and, as such, our valuations utilize significant unobservable inputs. Additionally, we classify IRLCs as Level 3, as our IRLCs are inherently uncertain and unobservable given that a home loan origination is contingent on a plethora of factors. The following key unobservable inputs were used in the fair value measurements of our IRLCs and student loan commitments as of the dates indicated:

June 30, 2022

December 31, 2021

Range

Weighted Average

Range

Weighted Average

IRLCs

Loan funding probability(1)

26.0% – 56.0%

53.9%

75.0% – 75.0%

75.0%

Student loan commitments

Loan funding probability(1)

95.0% – 95.0%

95.0%

95.0% – 95.0%

95.0%

___________________

(1)The probability of honoring IRLCs and student loan commitments, which reflects the percentage likelihood that an approved loan application will close based on historical experience. A significant difference between the actual funded rate and the assumed funded rate at the measurement date could result in a significantly higher or lower fair value measurement of our IRLCs and student loan commitments. The aggregate amount of student loans we committed to fund was $34,668 as of June 30, 2022. See Note 1 under “Derivative Financial Instruments” for the aggregate notional amount associated with IRLCs.

The key assumption included in the above table is defined as follows:

•Loan funding probability — Our expectation of the percentage of IRLCs or student loan commitments which will become funded loans. An increase in the loan funding probabilities, in isolation, would result in an increase in a fair value measurement. The weighted average assumptions were weighted based on relative fair values.

The following table presents the changes in our IRLCs and student loan commitments, which are measured at fair value on a recurring basis. Changes in the fair values of IRLCs and student loan commitments are recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss).


	IRLCs		Student Loan Commitments
Three Months Ended June 30, 2022
Fair value as of March 31, 2022	$	(3,039)	$	23
Revaluation adjustments	1,120		(254)
Funded loans(1)	1,636		(19)
Unfunded loans(1)	1,403		(4)
Fair value as of June 30, 2022	$	1,120	$	(254)

Three Months Ended June 30, 2021
Fair value as of March 31, 2021	$	7,118	$	—
Revaluation adjustments	7,760		—
Funded loans(1)	(5,275)		—
Unfunded loans(1)	(1,843)		—
Fair value as of June 30, 2021	$	7,760	$	—

Six Months Ended June 30, 2022
Fair value as of January 1, 2022	$	3,759	$	2,220
Revaluation adjustments	(1,919)		(231)
Funded loans(1)	(565)		(2,140)
Unfunded loans(1)	(155)		(103)
Fair value as of June 30, 2022	$	1,120	$	(254)

Six Months Ended June 30, 2021
Fair value as of January 1, 2021	$	15,620	$	—
Revaluation adjustments	14,878		—
Funded loans(1)	(15,485)		—
Unfunded loans(1)	(7,253)		—
Fair value as of June 30, 2021	$	7,760	$	—

___________________

(1)For each quarter presented, funded and unfunded loan fair value adjustments represent the unpaid principal balance of funded and unfunded loans, respectively, during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. For the year-to-date periods presented, amounts represent the summation of the per-quarter effects.

Non-Securitization Investments

Non-securitization investments — Other of $22,780 and $6,054 as of June 30, 2022 and December 31, 2021, respectively, include investments for which fair values are not readily determinable, which we elect to measure using the measurement alternative method of accounting. 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. Adjustments to the carrying value, such as impairments and unrealized gains, are recognized within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

In the first quarter of 2022, we measured a former equity method investment under the measurement alternative method, which primarily drove the increase in the balance from year end. The fair value of this investment was $19,739 as of June 30, 2022.

In the second quarter of 2022, we wrote off an investment with a carrying value of $2,168 for a loss, which reflected the impact of observable market changes. We had previously recognized a gain of $3,967 on this investment during the second quarter of 2021, which reflected a value based on the investee’s latest round of financing in an orderly transaction in an issuance similar to our investment holding. In that same quarter in 2021, we sold a portion of our investment for $2,000 at the same valuation.

We also had another investment with a fair value of $2,000 as of both June 30, 2022 and December 31, 2021. We did not make any adjustments to the investment value through June 30, 2022.

Purchase Price Earn-Out

We recognize a derivative asset for a purchase price earn-out in conjunction with a loan sale agreement we entered in 2018. We receive a capped contractual payout based on the respective loan pool internal rate of return over a certain hurdle rate, which is adjusted for the loan purchaser’s expenses, which are generally immaterial.

The fair value of the purchase price earn-out is determined using a discounted cash flow methodology. Management classifies the purchase price earn-out as Level 3 due to the use of significant unobservable inputs in the fair value measurement. A significant difference between the expected performance of the loans included in the loan sale agreement and the actual results as of the measurement date could result in a higher or lower fair value measurement. Our key valuation inputs were as follows as of the dates indicated:


Purchase Price Earn-Out	June 30, 2022	December 31, 2021
Conditional prepayment rate	22.7%	22.9%
Annual default rate	35.6%	30.0%
Discount rate	25.0%	25.0%

The key assumptions included in the above table are defined as follows:

•Conditional prepayment rate — The monthly annualized proportion of the principal of the pool of loans included in the loan sale agreement that is assumed to be paid off prematurely. An increase in the conditional prepayment rate, in isolation, would result in a decrease in a fair value measurement.

•Annual default rate — The annualized rate of borrowers who fail to remain current on their loans for the pool of loans included in the loan sale agreement. An increase in the annual default rate, in isolation, would result in a decrease in a fair value measurement.

•Discount rate — The weighted average rate at which the expected cash flows are discounted to arrive at the net present value of the purchase price earn-out derivative. An increase in the discount rate, in isolation, would result in a decrease in a fair value measurement.

The following table presents the changes in our purchase price earn-out, which is measured at fair value on a recurring basis. Changes in the fair value are recorded within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Changes during the three and six months ended June 30, 2021 were immaterial.


	Purchase Price Earn-Out
Three Months Ended June 30, 2022
Fair value as of March 31, 2022	$	2,285
Payments	(1,872)
Changes in valuation inputs or assumptions(1)	212
Fair value as of June 30, 2022	$	625








Six Months Ended June 30, 2022
Fair value as of January 1, 2022	$	4,272
Payments	(4,689)
Changes in valuation inputs or assumptions(1)	1,042
Fair value as of June 30, 2022	$	625

___________________

(1)The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the three and six months ended June 30, 2022. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the purchase price earn-out. These assumptions are based on historical performance and performance expectations over the term of the underlying instrument.

Safeguarding Assets and Liabilities

The following table presents the significant digital assets held by our third-party custodians on behalf of our members as of the date indicated:


	June 30, 2022
Bitcoin (BTC)	$	48,143
Ethereum (ETH)	34,135
Cardano (ADA)	8,383
Dogecoin (DOGE)	4,182
Solana (SOL)	3,778
Ethereum Classic (ETC)	2,289



All other(1)	11,100
Digital assets safeguarding liability and corresponding safeguarding asset	$	112,010

___________________

(1)Includes 25 digital assets, none of which was determined to be individually significant.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

The following table summarizes the Company’s principal outstanding debt, debt discounts/premiums and debt issuance costs as of the dates indicated:


Borrowing Description	Collateral Balances(1)		Interest Rate(2)	Termination/ Maturity(3)	Total Capacity(4)		Outstanding as of
							June 30, 2022(5)		December 31, 2021
Student Loan Warehouse Facilities
SoFi Funding I	$	95,308	1M SOFR + 100 bps	April 2023	$	200,000	$	88,402	$	—
SoFi Funding III(6)	—		PR – 134 bps	September 2024	75,000		—		3,930
SoFi Funding V(7)	21,704		SOFR + 105 bps	November 2023	225,000		19,977		—
SoFi Funding VI	—		3ML + 125 bps	March 2024	600,000		—		56,709
SoFi Funding VII	173,720		SOFR + 85 bps	September 2024	500,000		157,227		284,475
SoFi Funding VIII	—		1ML + 90 bps	May 2023	300,000		—		245,723
SoFi Funding IX(8)	—		SOFR+ 210 bps and CP + 87.5 bps	May 2025	500,000		—		9,816
SoFi Funding X(9)	249,150		CP + 95 bps	April 2025	500,000		222,176		29,647
SoFi Funding XI(10)	152,121		CP + 100 bps	November 2024	500,000		143,196		—
SoFi Funding XII(11)	—		CP + 115 bps	November 2024	200,000		—		20,267
SoFi Funding XIII	432,343		SOFR + 55 bps	April 2024	450,000		380,559		424,348
Total, before unamortized debt issuance costs	$	1,124,346			$	4,050,000	$	1,011,537	$	1,074,915
Unamortized debt issuance costs							$	(7,719)	$	(7,540)


Personal Loan Warehouse Facilities
SoFi Funding PL I(12)	$	—	CP + 137.5 bps	September 2023	$	250,000	$	—	$	11,911
SoFi Funding PL II	—		3ML + 225 bps	July 2023	400,000		—		—
SoFi Funding PL III	—		SOFR + 125 bps	November 2023	175,000		—		—
SoFi Funding PL IV(13)	—		CP + 170 bps	November 2023	500,000		—		—
SoFi Funding PL VI(14)	—		CP + 170 bps	September 2024	50,000		—		—
SoFi Funding PL VII	—		1ML + 115 bps	June 2023	250,000		—		71,572
SoFi Funding PL X	—		1ML + 142.5 bps	February 2023	200,000		—		—
SoFi Funding PL XI	—		1M SOFR + 125 bps	January 2023	200,000		—		—
SoFi Funding PL XIII	143,104		1M SOFR + 110 bps	January 2032	300,000		120,366		—
SoFi Funding PL XIV	67,025		SOFR + 100 bps	October 2024	300,000		56,830		144,662
SoFi Funding PL XV	279,861		SOFR + 80 bps	October 2024	325,000		238,933		—
Total, before unamortized debt issuance costs	$	489,990			$	2,950,000	$	416,129	$	228,145
Unamortized debt issuance costs							$	(3,774)	$	(3,898)


Home Loan Warehouse Facilities
Mortgage Warehouse VI	$	—	SOFR + 200 bps	October 2022	$	1,000	$	—	$	—
Total, before unamortized debt issuance costs	$	—			$	1,000	$	—	$	—
Unamortized debt issuance costs							$	—	$	—


Credit Card Warehouse Facilities
SoFi Funding CC I LLC(15)	$	—	CP + 100 bps	December 2023	$	100,000	$	—	$	11,810
Total, before unamortized debt issuance costs	$	—			$	100,000	$	—	$	11,810
Unamortized debt issuance costs							$	(141)	$	(312)


Risk Retention Warehouse Facilities(16)
SoFi RR Funding I	$	32,627	3ML + 200 bps	January 2024	$	100,000	$	22,117	$	22,608
SoFi RR Repo	—		3ML + 185 bps	January 2022	—		—		69,843
SoFi RR Funding II	27,347		1ML + 125 bps	November 2024			19,223		98,031
SoFi RR Funding III	36,180		1ML + 125 bps	November 2024			34,981		39,158
SoFi RR Funding IV	66,550		SOFR + 150 bps	October 2027	100,000		51,313		66,555
SoFi RR Funding V	38,065		298 bps	December 2025			9,767		29,453
Total, before unamortized debt issuance costs	$	200,769					$	137,401	$	325,648
Unamortized debt issuance costs							$	(1,481)	$	(2,086)


Borrowing Description	Collateral Balances(1)		Interest Rate(2)	Termination/ Maturity(3)	Total Capacity(4)		Outstanding as of
							June 30, 2022(5)		December 31, 2021
Revolving Credit Facility
SoFi Corporate Revolver(17)	n/a		1ML + 100 bps	September 2023	$	560,000	$	486,000	$	486,000
Total, before unamortized debt issuance costs					$	560,000	$	486,000	$	486,000
Unamortized debt issuance costs							$	(446)	$	(626)


Other Financing
Convertible senior notes	n/a		—%	October 2026			$	1,200,000	$	1,200,000
Total, before unamortized debt issuance costs and discount							$	1,200,000	$	1,200,000
Unamortized debt issuance costs							$	(1,464)	$	(1,634)
Unamortized discount							(20,493)		(22,858)


Other financing(18)	$	18,273			$	18,964	$	—	$	—

Student Loan Securitizations
SoFi PLP 2016-B LLC	$	39,401	1ML + (120–380 bps)	April 2037			$	34,635	$	43,186
SoFi PLP 2016-C LLC	45,217		1ML + (110–335 bps)	May 2037			40,060		49,685
SoFi PLP 2016-D LLC	59,093		1ML + (95–323 bps)	January 2039			52,414		61,760
SoFi PLP 2016-E LLC	67,693		1ML + (344–443 bps)	October 2041			60,562		74,242
SoFi PLP 2017-A LLC	85,536		1ML + (70–443 bps)	March 2040			76,904		92,972
SoFi PLP 2017-B LLC	71,639		274 – 444 bps	May 2040			64,794		78,811
SoFi PLP 2017-C LLC	95,241		1ML + (60–421 bps)	July 2040			85,837		102,814
Total, before unamortized debt issuance costs and discount	$	463,820					$	415,206	$	503,470
Unamortized debt issuance costs							$	(3,020)	$	(3,851)
Unamortized discount							(873)		(1,094)


Personal Loan Securitizations
SoFi CLP 2018-3 LLC	$	49,965	467 bps	August 2027			$	44,614	$	76,535
SoFi CLP 2018-4 LLC	57,683		417 – 476 bps	November 2027			53,370		86,835
Total, before unamortized debt issuance costs, premiums and discount	$	107,648					$	97,984	$	163,370
Unamortized debt issuance costs							$	(1,397)	$	(1,683)
Unamortized premium							112		207


Total, before unamortized debt issuance costs, premiums and discounts							$	3,764,257	$	3,993,358
Less: unamortized debt issuance costs, premiums and discounts							(40,696)		(45,375)
Total reported debt							$	3,723,561	$	3,947,983

_________________

(1)As of June 30, 2022, represents unpaid principal balances, with the exception of the risk retention warehouse facilities, which include securitization-related investments carried at fair value. In addition, certain securitization interests that eliminate in consolidation are pledged to risk retention warehouse facilities. Collateral balances relative to debt balances as presented may vary period to period due to the timing of the next scheduled payment to the warehouse facility.

(2)Unused commitment fees ranging from 0 to 70 basis points (“bps”) on our various warehouse facilities are recognized within noninterest expense—general and administrative in our unaudited condensed consolidated statements of operations and comprehensive income (loss). “ML” stands for “Month LIBOR”. As of June 30, 2022, 1ML and 3ML was 1.79% and 2.29%, respectively. “SOFR” in this table refers to the overnight SOFR, unless otherwise indicated. “1M SOFR” stands for “one-month SOFR”. As of June 30, 2022, SOFR was 1.50% and 1M SOFR was 1.69%. “PR” stands for “Prime Rate”. As of June 30, 2022, PR was 4.75%.

(3)For securitization debt, the maturity of the notes issued by the various trusts occurs upon either the maturity of the loan collateral or full payment of the loan collateral held in the trusts. Our maturity date represents the legal maturity of the last class of maturing notes. Securitization debt matures as loan collateral payments are made.

(4)Represents total capacity as of June 30, 2022.

(5)There were no debt discounts or premiums issued during the six months ended June 30, 2022. We paid $700 during the six months ended June 30, 2022 related to debt issuance costs accrued in 2021.

(6)Warehouse facility has a prime rate floor of 309 bps.

(7)Warehouse facility has a SOFR floor of 0%.

(8)Warehouse facility incurs different interest rates on its two types of asset classes. One such class incurs interest based on a commercial paper (“CP”) rate, which is determined by the facility lender. As of June 30, 2022, the CP rate for this facility was 1.36%.

(9)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of June 30, 2022, the CP rate for this facility was 1.71%.

(10)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of June 30, 2022, the CP rate for this facility was 1.46%. The facility was amended in the first quarter of 2022 to allow up to $250 million of securitization risk retention securities to be pledged to the warehouse. As of June 30, 2022, $85.9 million of the collateral balance for the facility was related to securitization risk retention securities, with the remainder of the collateral balance related to student loans.

(11)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of June 30, 2022, the CP rate for this facility was 1.46%. Under certain conditions, warehouse facility could incur an interest rate spread of 215 bps.

(12)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of June 30, 2022, the CP rate for this facility was 1.40%.

(13)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of June 30, 2022, the CP rate for this facility was 1.46%.

(14)Warehouse facility incurs interest based on a CP rate, which is determined by the facility lender. As of June 30, 2022, the CP rate for this facility was 1.46%.

(15)Warehouse facility incurs interest at a spread (as indicated in the table) plus the lower of (a) three-month SOFR plus 35 bps or (b) the CP rate for this facility, which is determined by the facility lender. As of June 30, 2022, the CP rate for this facility was 1.92%, and the three-month SOFR rate was 2.12%.

(16)Financing was obtained for both asset-backed bonds and residual investments in various personal loan and student loan securitizations, and the underlying collateral are the underlying asset-backed bonds and residual investments. We only state capacity amounts in this table for risk retention facilities wherein we can pledge additional asset-backed bonds and residual investments as of June 30, 2022.

(17)As of June 30, 2022, $6.0 million of the revolving credit facility total capacity was not available for general borrowing purposes because it was utilized to secure a letter of credit. Refer to our letter of credit disclosures in Note 15 for more details. Additionally, the interest rate presented is the interest rate on standard withdrawals on our revolving credit facility, while same-day withdrawals incur interest based on PR.

(18)Includes $18.3 million of loans pledged as collateral to secure $11.4 million of available borrowing capacity with the FHLB, of which $9.7 million was not available as it was utilized to secure letters of credit. Refer to our letter of credit disclosures in Note 15 for more details. Also includes unsecured available borrowing capacity of $7.6 million with correspondent banks.

Material Changes to Debt Arrangements

During the six months ended June 30, 2022, we opened one personal loan warehouse facility with a maximum available capacity of $325,000, and closed one risk retention warehouse facility that had a maximum available capacity of $192,141.

Our warehouse and securitization debt is secured by a continuing lien and security interest in the loans financed by the proceeds. Within each of our debt facilities, we must comply with certain operating and financial covenants. These financial covenants include, but are not limited to, maintaining: (i) a certain minimum tangible net worth, (ii) minimum cash and cash equivalents, and (iii) a maximum leverage ratio of total debt to tangible net worth. Our debt covenants can lead to restricted cash classifications in our unaudited condensed consolidated balance sheets. Our subsidiaries are restricted in the amount that can be distributed to the parent company only to the extent that such distributions would cause the financial covenants to not be met. We were in compliance with all financial covenants.

We assumed $2,000 of debt in the Bank Merger, which was paid off during the first quarter of 2022.

We act as a guarantor for our wholly-owned subsidiaries in several arrangements in the case of default. As of June 30, 2022, we have not identified any risks of nonpayment by our wholly-owned subsidiaries.

Maturities of Borrowings

As of June 30, 2022, future maturities of our outstanding debt with scheduled payments, which included our revolving credit facility and convertible notes, were as follows:


Remainder of 2022	$	—
2023	486,000
2024	—
2025	—
2026	1,200,000
Thereafter	—
Total	$	1,686,000

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Temporary Equity Disclosure [Abstract]

Temporary Equity

6 Months Ended

Jun. 30, 2022

Temporary Equity

Pursuant to SoFi Technologies’ Certificate of Incorporation dated May 28, 2021, the Company is authorized to issue 100,000,000 shares of preferred stock having a par value of $0.0001 per share (“SoFi Technologies Preferred Stock”) and 100,000,000 shares of redeemable preferred stock having a par value of $0.0000025 per share (“SoFi Technologies Redeemable Preferred Stock”). The Company’s Board of Directors has the authority to issue SoFi Technologies Preferred Stock and SoFi Technologies Redeemable Preferred Stock and to determine the rights, preferences, privileges and restrictions, including voting rights, of those shares. The authorized shares of SoFi Technologies Redeemable Preferred Stock is inclusive of 4,500,000 shares of Series 1 redeemable preferred stock (“Series 1 Redeemable Preferred Stock”), which reflect the conversion on a one-for-one basis of shares of Social Finance Series 1 preferred stock in conjunction with the Business Combination. Shares of SoFi Technologies Series 1 Redeemable Preferred Stock that are redeemed, purchased or otherwise acquired by the Company will be canceled and may not be reissued by the Company. The Series 1 Redeemable Preferred Stock remains classified as temporary equity because the Series 1 Redeemable Preferred Stock is not fully controlled by the issuer, SoFi Technologies.

As of June 30, 2022, there were no shares of SoFi Technologies Preferred Stock issued and outstanding and there were 3,234,000 shares of Series 1 Redeemable Preferred Stock issued and outstanding, which had an original issuance price of $100.00. In conjunction with the Business Combination, we made 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 in 2021. The special payment was recognized within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (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.

Dividends

During the three months ended June 30, 2022 and 2021, the holders of Series 1 Redeemable Preferred Stock were entitled to dividends of $10,079 and $10,079, respectively. During the six months ended June 30, 2022 and 2021, the holders of the Series 1 Redeemable Preferred Stock were entitled to dividends of $20,047 and $20,047, respectively. There were no dividends payable as of June 30, 2022 and December 31, 2021.

There have been no dividend deferrals related to the Series 1 Redeemable Preferred Stock.

Warrants

In connection with the Series 1 and Series H preferred stock issuances during the year ended December 31, 2019, we also issued 12,170,990 Series H warrants, which were initially accounted for as liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity, and were included within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets. Prior to the Business Combination, the Series H warrants were measured at fair value on a recurring basis and classified as Level 3 because of our reliance on unobservable assumptions, with fair value changes recognized within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss). On May 28, 2021, in conjunction with the Closing of the Business Combination, we measured the final fair value of our Series H warrants. At that time, we reclassified the Series H warrant

liability into permanent equity, as the terms of the Series H instrument no longer necessitated liability accounting. Therefore, we did not measure the warrants at fair value subsequent to May 28, 2021.

The following table presents the changes in the fair value of the Series H warrant liabilities during the three and six months ended June 30, 2021, which was prior to the reclassification to permanent equity:


	Warrant Liabilities
Three Months Ended June 30, 2021
Fair value as of March 31, 2021	$	129,879
Change in valuation inputs or other assumptions	31,896
Reclassification to permanent equity in conjunction with the Business Combination	(161,775)
Fair value as of June 30, 2021	$	—

Six Months Ended June 30, 2021
Fair value as of January 1, 2021	$	39,959
Change in valuation inputs or other assumptions	121,816
Reclassification to permanent equity in conjunction with the Business Combination	(161,775)
Fair value as of June 30, 2021	$	—

Permanent Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

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 June 30, 2022, the Company had 922,103,100 shares of common stock and no shares of non-voting common stock issued and outstanding.

The Company reserved the following common stock for future issuance as of the dates indicated:


	June 30,	December 31,
	2022	2021
Outstanding stock options, RSUs and performance stock units (“PSUs”)	102,173,952	92,829,067
Outstanding common stock warrants	12,170,990	12,170,990
Conversion of convertible notes(1)	53,538,000	53,538,000
Possible future issuance under stock plans	15,550,144	32,470,481
Potentially issuable contingent common stock(2)	598,068	—
Total common stock reserved for future issuance	184,031,154	191,008,538

____________________

(1)Represents the number of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the balance sheet date.

(2)As of June 30, 2022, includes potentially issuable contingent common stock in connection with the Technisys Merger, which determination is pending final agreement regarding a closing net working capital calculation specified in the merger agreement. See Note 2 for additional information.

Dividends

There were no dividends declared or paid to common stockholders during the six months ended June 30, 2022 and 2021.

Accumulated Other Comprehensive Income (Loss)

AOCI primarily consists of accumulated net unrealized gains or losses associated with our investments in AFS debt securities, which commenced during the third quarter of 2021, and foreign currency translation adjustments.

The following table presents the rollforward of AOCI, inclusive of the changes in the components of other comprehensive loss for the periods indicated:


	AFS Debt Securities		Foreign Currency Translation Adjustments		Total
Three Months Ended June 30, 2022
AOCI, beginning balance	$	(5,806)	$	(158)	$	(5,964)
Other comprehensive loss before reclassifications(1)	(2,115)		(56)		(2,171)
Amounts reclassified from AOCI into earnings	124		—		124
Net current-period other comprehensive loss(2)	(1,991)		(56)		(2,047)
AOCI, ending balance	$	(7,797)	$	(214)	$	(8,011)

Three Months Ended June 30, 2021
AOCI, beginning balance	$	—	$	(246)	$	(246)
Other comprehensive loss before reclassifications(1)	—		(266)		(266)

Net current-period other comprehensive loss(2)	—		(266)		(266)
AOCI, ending balance	$	—	$	(512)	$	(512)

Six Months Ended June 30, 2022
AOCI, beginning balance	$	(1,351)	$	(120)	$	(1,471)
Other comprehensive loss before reclassifications(1)	(6,731)		(94)		(6,825)
Amounts reclassified from AOCI into earnings	285		—		285
Net current-period other comprehensive loss(2)	(6,446)		(94)		(6,540)
AOCI, ending balance	$	(7,797)	$	(214)	$	(8,011)

Six Months Ended June 30, 2021
AOCI, beginning balance	$	—	$	(166)	$	(166)
Other comprehensive loss before reclassifications(1)	—		(346)		(346)

Net current-period other comprehensive loss(2)	—		(346)		(346)
AOCI, ending balance	$	—	$	(512)	$	(512)

____________________

(1)Gross realized gains and losses from sales of our investments in AFS debt securities that were reclassified from AOCI to earnings are recorded within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). We did not have investments in AFS debt securities during the six months ended June 30, 2021. Additionally, there were no reclassifications related to foreign currency translation adjustments during the six months ended June 30, 2022 and 2021.

(2)There were no tax impacts during any of the periods presented due to reserves against deferred tax assets in jurisdictions where other comprehensive loss activity was generated.

For gross amounts of realized gains and losses on our investments in AFS debt securities, see Note 3. Interest income associated with our investments in AFS debt securities is recognized within interest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Compensation

2021 Stock Option and Incentive Plan

In connection with the Closing of the Business Combination, the Company adopted the 2021 Stock Option and Incentive Plan (the “2021 Plan”), which authorized for issuance 63,575,425 shares of common stock in connection with the Business Combination. The 2021 Plan allowed for the number of authorized shares to increase on the first day of each fiscal year beginning on January 1, 2022 and ending on and including January 1, 2030. Effective January 1, 2022, our Board of Directors authorized the issuance of an additional 8,937,242 shares under this provision. Refer to Note 19 for discussion of an amendment and restatement of the 2021 Plan during the subsequent event period. The 2021 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units (including performance stock units), dividend

equivalents and other stock or cash based awards for issuance to its employees, non-employee directors and non-employee third parties. Shares associated with option exercises and RSU vesting are issued from the authorized pool.

During the six months ended June 30, 2022 and 2021, we incurred cash outflows of $5,846 and $28,603, respectively, related to the payment of withholding taxes for vested RSUs. These cash outflows are presented within net cash provided by (used in) financing activities in the unaudited condensed consolidated statements of cash flows.

Share-based compensation expense related to stock options, RSUs and PSUs is presented within the following line items in the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Technology and product development	$	18,342	$	16,618	$	35,834	$	28,234
Sales and marketing	6,008		3,695		11,141		6,140
Cost of operations	4,816		2,709		8,959		4,190
General and administrative	50,976		29,132		101,229		51,044
Total	$	80,142	$	52,154	$	157,163	$	89,608

Stock Options

The following is a summary of stock option activity for the period indicated:


	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Outstanding as of January 1, 2022	21,171,147	$	6.81	5.8
Granted(1)	—	n/a
Exercised	(1,442,890)	1.43
Forfeited	(1,126)	6.84
Expired	(92,419)	3.06
Outstanding as of June 30, 2022	19,634,712	$	7.23	5.4
Exercisable as of June 30, 2022	19,526,150	$	7.23	5.4

____________________

(1)There were no stock options granted during the six months ended June 30, 2022.

Total compensation cost related to unvested stock options not yet recognized as of June 30, 2022 was $3.2 million and will be recognized over a weighted average period of approximately 0.7 years.

Restricted Stock Units

RSUs are equity awards granted to employees that entitle the holder to shares of our common stock when the awards vest. For employees hired on or after January 1, 2022, new hire RSU grants typically vest 12.5% on the first vesting date, which occurs approximately six months after the date of grant, and ratably each quarter of the ensuing 14-quarter period. For employees hired before January 1, 2022, new hire RSU grants typically vest 25% on the first vesting date, which occurs approximately one year after the date of grant, and ratably each quarter of the ensuing 12-quarter period. RSUs have been issued under other vesting schedules, including grants to existing employees.

The following table summarizes RSU activity for the period indicated:


	Number of RSUs	Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2022	48,687,524	$	12.23
Granted	27,687,968	8.87
Replacement Awards(1)	630,654	10.69
Vested(2)	(11,312,098)	11.74
Forfeited	(4,952,182)	10.13
Outstanding as of June 30, 2022(3)	60,741,866	$	10.95

________________________

(1)In connection with the Technisys Merger, we converted outstanding Technisys performance awards into RSUs to acquire common stock of SoFi, and for which $2,855 of the fair value was attributed to pre-combination services. See Note 2 for additional information.

(2)The total fair value, based on grant date fair value, of RSUs that vested during the six months ended June 30, 2022 was $132.8 million.

(3)Includes 178,021 RSUs that were granted in 2020 and later modified in an improbable-to-probable modification (Type III), related to which $741 and $1,695 of share-based compensation expense was recorded during the three and six months ended June 30, 2022, respectively. The awards were fully expensed as of June 30, 2022.

As of June 30, 2022, there was $631.7 million of unrecognized compensation cost related to unvested RSUs, which will be recognized over a weighted average period of approximately 3.1 years.

Performance Stock Units

The following table summarizes PSU activity for the period indicated:


	Number of PSUs	Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2022	22,970,396	$	9.52
Granted	122,190	3.71
Vested	—	n/a
Forfeited	(1,295,212)	7.53
Outstanding as of June 30, 2022	21,797,374	$	9.60

Compensation cost associated with PSUs is recognized using the accelerated attribution method for each of the three vesting tranches over the respective derived service period. We determine the grant-date fair value of PSUs utilizing a Monte Carlo simulation model. The following table summarizes the inputs used for estimating the fair value of PSUs granted during the period indicated:


Input						Six Months Ended June 30, 2022
Risk-free interest rate						1.6%
Expected volatility						37.7%
Fair value of common stock						$12.06
Dividend yield						—%

Our use of a Monte Carlo simulation model requires the use of subjective assumptions:

•The risk-free interest rate assumption was based on the U.S. Treasury rate at the time of grant commensurate with the remaining term of the PSUs.

•The expected volatility assumption was based on the implied volatility of our common stock from a set of comparable publicly-traded companies.

•The fair value of our common stock was based on the closing stock price on the date of grant.

•We assumed no dividend yield because we have historically not paid out dividends to common stockholders.

As of June 30, 2022, there was $103.3 million of unrecognized compensation cost related to unvested PSUs, which will be recognized over a weighted average period of approximately 1.4 years.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For interim periods, we follow the general recognition approach whereby tax expense is recognized through the use of an estimated annual effective tax rate, which is applied to the year-to-date operating results. Additionally, we recognize tax expense or benefit for any discrete items occurring within the interim period that were excluded from the estimated annual effective tax rate. Our effective tax rate may be subject to fluctuations during the year due to impacts from the following items: (i) changes in forecasted pre-tax and taxable income or loss, (ii) changes in statutory law or regulations in jurisdictions where we operate, (iii) audits or settlements with taxing authorities, (iv) the tax impact of expanded product offerings or business acquisitions, and (v) changes in valuation allowance assumptions. For the three and six months ended June 30, 2022, we recorded income tax expense of $(119) and $(871), respectively. For the three and six months ended June 30, 2021, we recorded income tax benefit (expense) of $78 and $(1,021), respectively. Income taxes were primarily due to income tax expense associated with the profitability of SoFi Lending Corp. and, for the 2022 periods, SoFi Bank, in some state jurisdictions where separate company filing is required. In the 2022 periods, this expense was partially offset by income tax benefits from foreign losses in jurisdictions with net deferred tax liabilities related to the Technisys Merger. See Note 2 for additional information. During the six months ended June 30, 2022, we increased our unrecognized tax benefits by $9,885, of which $6,548 would impact the Company’s effective tax rate if realized. The increase resulted from the recognition of historical tax reserves that existed at the time of the Technisys Merger and were recorded through goodwill. See Note 2 for additional information. As part of our purchase consideration, there are shares held in escrow, which could be returned to SoFi to indemnify us against future tax settlements during the escrow period. We do not expect to have any significant changes to unrecognized tax benefits over the next 12 months. During the six months ended June 30, 2022, we maintained a full valuation allowance against our net deferred tax assets in applicable jurisdictions. In certain foreign and state jurisdictions where sufficient deferred tax liabilities exist, no valuation allowance is recognized. Management reviews all available positive and negative evidence in assessing the realizability of deferred tax assets. We will continue to recognize a full valuation allowance until there is sufficient positive evidence to support its release.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Business Segment Information

Related Parties	6 Months Ended
Related Parties	Jun. 30, 2022
Related Party Transactions [Abstract]
Related Parties	Related Parties The Company defines related parties as members of our Board of Directors, entity affiliates, executive officers and principal owners of the Company’s outstanding stock and members of their immediate families. Related parties also include any other person or entity with significant influence over the Company’s management or operations. Apex Loan In February 2021, Apex Clearing Holdings, LLC (“Apex”), in which we historically had a minority ownership, paid us $18,304 in settlement of all of their outstanding obligations to us, which consisted of outstanding principal balances of $16,693 and accrued interest of $1,611. During the three and six months ended June 30, 2021, we recognized interest income of $— and $211, respectively, within interest income—related party notes, and we reversed the remainder of the loss for the discount to fair value that had not yet been accreted of $169 within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss), which was only applicable to the six-month period.

Commitments, Guarantees, Concentrations and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments, Guarantees, Concentrations and Contingencies	Commitments, Guarantees, Concentrations and Contingencies Leases We primarily lease our office premises under multi-year, non-cancelable operating leases. Our operating leases have terms expiring from 2022 to 2040, exclusive of renewal option periods. Our office leases contain renewal option periods ranging from one to ten years from the expiration dates. These options were not recognized as part of our ROU assets and operating lease liabilities, as we did not conclude at the commencement date of the leases that we were reasonably certain to exercise these options. However, in our normal course of business, we expect our office leases to be renewed, amended or replaced by other leases. Associated with these leases, we obtained non-cash operating lease ROU assets in exchange for new operating lease liabilities of $764 during the six months ended June 30, 2022, which were related to our recent acquisitions. Our finance leases expire in 2040. Lease Concession The lessor for one of our operating leases allowed us to defer payments on the lease beginning in April 2020 as a result of our inability to use the leased premises during the COVID-19 pandemic. During the concession period, we did not recognize operating lease cost and we did not remeasure the right-of-use asset or lease liability. We regained access to the leased premises in September 2021 and resumed lease amortization at that time. In the absence of this concession, we would have recognized additional operating lease cost of $566 and $1,132 during the three and six months ended June 30, 2021, respectively. Concentrations Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, restricted cash and restricted cash equivalents, residual investments and loans. We hold cash and cash equivalents and restricted cash and restricted cash equivalents in accounts at regulated domestic financial institutions in amounts that may exceed FDIC insured amounts. We believe these institutions are of high credit quality. We are dependent on third-party funding sources to originate loans. Additionally, we sell loans to various third parties. We have historically sold loans to a limited pool of third-party buyers. No individual third-party buyer accounted for 10% or more of consolidated total net revenues for any of the periods presented. The Company is exposed to default risk on borrower loans originated and financed by us. There is no single borrower or group of borrowers that comprise a significant concentration of the Company’s loan portfolio. Likewise, the Company is not overly concentrated within a group of channel partners or other customers, with the exception of our distribution of personal loan residual interests in our sponsored personal loan securitizations, which we market to third parties, and the aforementioned whole loan buyers. Given we have a limited number of prospective buyers for our personal loan securitization residual interests, this might result in us utilizing a significant amount of our own capital to fund future residual interests in personal loan securitizations, or impact the execution of future securitizations if we are limited in our own ability to invest in the residual interest portion of future securitizations, or find willing buyers for securitization residual interests. Contingencies Legal Proceedings In limited instances, the Company may be subject to a variety of claims and lawsuits in the ordinary course of business. Regardless of the final outcome, defending lawsuits, claims, government investigations, and proceedings in which we are involved is costly and can impose a significant burden on management and employees, and there can be no assurances that we will receive favorable final outcomes. SoFi Stadium. In September 2019, we established a 20-year partnership with LA Stadium and Entertainment District at Hollywood Park in Inglewood, California (“StadCo”), through a naming and sponsorship agreement, which, among other things, provides SoFi with exclusive naming rights of SoFi Stadium and an official partnership with the Los Angeles Chargers and Los Angeles Rams and with the performance venue, which shares a roof with the stadium, and the surrounding planned entertainment district, which is anticipated to include office space, retail space and hotel and dining options. In September 2020, we discussed certain provisions of the naming and sponsorship agreement with StadCo in light of the COVID-19 pandemic. Based on these discussions, SoFi paid sponsorship fees for the initial contract year (July 1, 2020 to March 31, 2021) of $9.8 million, of which $6.5 million was paid during 2020 and $3.3 million was paid in January 2021. The parties are revisiting the sponsorship fees to determine the ultimate amount payable for the initial contract year and have agreed to seek to engage a third party with expertise in the valuation of sports media rights and sports sponsorship or promotional rights (“Valuation Expert”) to perform an evaluation of the delivered value during the initial contract year. The valuation has not begun as of the date of this Quarterly Report on Form 10-Q. Therefore, the Company is exposed to additional potential sales and marketing expense of up to $12.7 million, which reflects the difference between the actual sponsorship fees paid during the initial contract year and the commitment for the initial contract year made under the Naming and Sponsorship Agreement. As of June 30, 2022, we are unable to estimate the amount of reasonably possible additional costs we may incur with respect to this contingency. Moreover, we have not determined that the likelihood of additional cost is probable. Therefore, as of June 30, 2022, we have not recorded additional expense related to this contingency. Juarez et al v. SoFi Lending Corp. During January 2022, the parties advised the court that they had reached agreement on nearly all material terms of the settlement and were in the process of documenting the settlement and accompanying class action settlement notice and claim form. The settlement agreement was fully executed in April 2022 and the plaintiffs have moved for preliminary approval of the settlement. The proposed class settlement, which contemplates an aggregate payment by SoFi in an immaterial amount, remains subject to final court review and approval, which we expect to occur in 2023. In re Renren Inc. Derivative Litigation. In April 2022, the Supreme Court of New York held a mediation with the plaintiffs and announced that, given the parties' inability to reach an agreement, the Court is going to approve a settlement over objections. On June 9, 2022, the Court issued a final order and judgment approving the settlement. During July 2022, two sets of shareholders that had objected to the settlement filed notices of appeal from the Court’s order and judgment approving the settlement. We do not expect these objections ultimately to affect the provision in the settlement agreement in which all claims against Social Finance are dismissed with prejudice. Guarantees We have three types of repurchase obligations that we account for as financial guarantees, which are disclosed in our Annual Report on Form 10-K. In the event of a repurchase, we are typically required to pay the purchase price of the loans transferred. As of June 30, 2022 and December 31, 2021, the Company accrued liabilities within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets of $4,844 and $7,441, respectively, related to our estimated repurchase obligation, with the corresponding charges recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). As of each of June 30, 2022 and December 31, 2021, the amount associated with loans sold that were subject to the terms and conditions of our repurchase obligations totaled $6.5 billion. As of June 30, 2022 and December 31, 2021, the Company had a total of $9.1 million in letters of credit outstanding with financial institutions, which were issued for the purpose of securing certain of the Company’s operating lease obligations. A portion of the letters of credit was collateralized by $3.1 million of the Company’s cash, which is included within restricted cash and restricted cash equivalents in the unaudited condensed consolidated balance sheets. As of June 30, 2022, the Company had a total of $9.7 million in letters of credit outstanding with the FHLB, which serve as collateral for public deposits and were collateralized by loans. Mortgage Banking Regulatory Mandates The Company is subject to certain state-imposed minimum net worth requirements for the states in which the Company is engaged in the business of a residential mortgage lender. As of June 30, 2022 and December 31, 2021, the Company was in compliance with all minimum net worth requirements and, therefore, has not accrued any liabilities related to fines or penalties. Retirement Plans The Company has a 401(k) plan that covers all employees meeting certain eligibility requirements. The Company’s contributions to the plan are discretionary. The Company has not made any contributions to the plan to date.

Loss Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Loss Per Share

We compute loss per share attributable to common stock using the two-class method required for participating interests. Series 1 Redeemable Preferred Stock has preferential cumulative dividend rights. Pursuant to ASC 260, Earnings Per Share, for each period presented, we increased net loss by the contractual amount of dividends payable to holders of Series 1 Redeemable Preferred Stock. Subsequent to the Business Combination, we did not have any participating interests.

Basic loss per share of common stock was 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. We excluded the effect of all potentially dilutive common stock elements from the denominator in the computation of diluted loss per share, as their inclusion would have been anti-dilutive.

The calculation of basic and diluted loss per share was as follows for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net loss	$	(95,835)	$	(165,314)	$	(206,192)	$	(342,878)
Less: Redeemable preferred stock dividends	(10,079)		(10,079)		(20,047)		(20,047)
Net loss attributable to common stockholders – basic and diluted	$	(105,914)	$	(175,393)	$	(226,239)	$	(362,925)
Denominator:
Weighted average common stock outstanding – basic	910,046,750		365,036,365		881,608,165		241,282,003
Weighted average common stock outstanding – diluted	910,046,750		365,036,365		881,608,165		241,282,003
Loss per share – basic	$	(0.12)	$	(0.48)	$	(0.26)	$	(1.50)
Loss per share – diluted	$	(0.12)	$	(0.48)	$	(0.26)	$	(1.50)

We excluded the effect of the below elements from our calculation of diluted loss per share, as their inclusion would have been anti-dilutive, as there were no earnings attributable to common stockholders. These amounts represent the number of instruments outstanding at the end of each period indicated:


	June 30,
	2022	2021
Common stock options	19,634,712	27,040,727
Common stock warrants	12,170,990	40,295,990
Unvested RSUs	60,741,866	53,128,121
Unvested PSUs	21,797,374	6,428,578
Convertible notes(1)	53,538,000	—
Contingent common stock(2)	6,903,663	320,649
Potentially issuable contingent common stock(3)	598,068	—

________________________

(1)Represents the number of common stock issuable upon conversion of all convertible notes at the conversion rate in effect at the date indicated.

(2)As of June 30, 2022, includes contingently returnable common stock in connection with the Technisys Merger, which remains subject to further adjustment, pending final agreement regarding a closing net working capital calculation specified in the merger agreement. See Note 2 for additional information. As of June 30, 2021, included contingently issuable common stock in connection with our acquisition of 8 Limited, which was subsequently issued during the fourth quarter of 2021.

(3)As of June 30, 2022, includes the maximum amount of potentially issuable contingent common stock in connection with the Technisys Merger, which is pending final agreement regarding a closing net working capital calculation specified in the merger agreement. See Note 2 for additional information.

Business Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Organization and Reporting Framework

The Company has three reportable segments: Lending, Technology Platform and Financial Services. Each of our reportable segments is a strategic business unit that serves specific needs of our members based on the products and services provided. The segments are based on the manner in which management views the financial performance of the business. The reportable segments also reflect the Company’s organizational structure. Each segment has a segment manager who reports directly to the Chief Operating Decision Maker (“CODM”). The CODM has ultimate authority and responsibility over resource allocation decisions and performance assessment.

The operations of acquired businesses have been integrated into, or managed as part of, our existing reportable segments. Activities that are not part of a reportable segment, such as management of our corporate investment portfolio and

asset/liability management by our centralized treasury function (as further discussed below), are included in the Corporate/Other non-reportable segment (previously referred to as the “Other” non-reportable segment).

Contribution profit (loss) is the primary measure of segment profit and loss reviewed by the CODM and is intended to measure the direct profitability of each segment in the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources. Contribution profit (loss) is defined as total net revenue for each reportable segment less:

•fair value changes in servicing rights and residual interests classified as debt that are attributable to assumption changes, which impact the contribution profit within the Lending segment. These fair value changes are non-cash in nature and are not realized in the period; therefore, they do not impact the amounts available to fund our operations; and

•expenses directly attributable to the corresponding reportable segment. Directly attributable expenses primarily include compensation and benefits and sales and marketing, and vary based on the amount of activity within each segment. Directly attributable expenses also include loan origination and servicing expenses, professional services, product fulfillment, lead generation and occupancy-related costs. Expenses are attributed to the reportable segments using either direct costs of the segment or labor costs that can be attributed based upon the allocation of employee time for individual products.

During the first quarter of 2022, we implemented a funds transfer pricing (“FTP”) framework to attribute net interest income to our business segments based on their usage and/or provision of funding. The primary objective of the FTP framework is to transfer interest rate risk from the business segments by providing matched duration of funding of assets and liabilities to allocate interest income and interest expense to each segment. Therefore, the financial impact, management and reporting of interest rate risk is centralized in Corporate/Other, where it is monitored and managed. Under the FTP framework, treasury provides a funds credit for sources of funds, such as deposits generated by our Financial Services segment, and a funds charge for the use of funds, such as loan originations in our Lending segment. The process for determining FTP credits and charges is based on a number of factors and assumptions, including prevailing market interest rates, the expected duration of interest-earning and interest-bearing assets and liabilities, contingent risks and behaviors, and the Company’s broader funding profile. As the durations of 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. During the second quarter of 2022, we further refined the FTP framework for determining average asset and liability balances. The application of the FTP framework impacts the measure of net interest income and, thereby, total net revenue and contribution profit (loss) for our Lending and Financial Services segments, as well as the total net revenue of Corporate/Other, but has no impact on our consolidated results of operations.

Prior to implementing the FTP framework, the presentation of our Lending and Financial Services segments’ net interest income reflected the difference between interest income earned on our loans and the actual interest expense incurred on any loans that were financed. Under the FTP framework, such interest expense is incurred by treasury within Corporate/Other and replaced by an FTP charge. Application of our current FTP framework during the comparative three and six month periods ended June 30, 2021, would have impacted Lending segment net interest income by $1,393 and $2,651, respectively, and Financial Services segment net interest income by $(51) and $(72), respectively. The offsetting impact would have been reflected within net interest income in Corporate/Other. If we had applied the refined methodology during the first quarter of 2021, Lending and Financial Services segment net interest income would have been impacted by $1,258 and $(21), respectively, relative to the net interest income reported in the comparative period.

The accounting policies of our reportable segments are consistent with those described in Note 1 and in our Annual Report on Form 10-K, except for the application of the FTP framework and the allocations of consolidated income and consolidated expenses. Assets are not allocated to reportable segments, as our CODM does not evaluate reportable segments using discrete asset information.

Segment Information

Lending. The Lending segment includes our personal loan, student loan and home loan products and the related servicing activities. We originate loans in each of the aforementioned channels with the objective of either selling whole

loans or securitizing a pool of originated loans for transfer to third-party purchasers. Revenues in the Lending segment are driven by changes in the fair value of our whole loans and securitization interests (inclusive of our economic hedging activities), gains or losses recognized on transfers that meet the true sale requirements, and our servicing-related activities, which mainly consist of servicing fees and the changes in our servicing assets over time. In our Lending segment, we also earn the difference between interest income earned on our loans and interest expense, as determined using the FTP framework for the three-month 2022 period and a portion of the six-month 2022 period, and from our warehouse financing in the remainder of the six-month 2022 period and the full 2021 period. Our CODM considers net interest income in addition to contribution profit in evaluating the performance of our Lending segment and making resource allocation decisions. Therefore, we present interest income net of interest expense.

Technology Platform. The Technology Platform segment includes our technology products and solutions revenue, which was primarily related to our platform-as-a-service through Galileo, which provides the infrastructure to facilitate core client-facing and back-end capabilities, such as account setup, accounting funding, direct deposit, authorizations and processing, payments functionality and check account balance features. Beginning in March 2022, this segment also includes our revenue earned by Technisys, which expanded our segment to include a cloud-native digital and core banking platform offering and which results in the sale of software licenses and the provision of related technology solutions. See Note 2 for additional information on the Technisys Merger.

Financial Services. The Financial Services segment primarily includes our SoFi Checking and Savings product (which commenced in the first quarter of 2022), SoFi Money cash management product, SoFi Invest product, SoFi Credit Card product, SoFi Relay personal finance management product and other financial services, such as equity capital markets and advisory services, lead generation, and content for other financial services institutions and our members. SoFi Checking and Savings provides members a digital banking experience that offers no account fees, 2-day early paycheck and a competitive annual percentage yield. SoFi Money cash management provides members a digital cash management experience. Effective June 5, 2022, our SoFi Money cash management accounts no longer earn interest, as we implemented our plan to build new features only for SoFi Checking and Savings and reduce support of our SoFi Money cash management accounts. SoFi Invest provides investment features and financial planning services that we offer to our members. Revenues in the Financial Services segment include interest income earned and interest expense incurred under the FTP framework, payment network fees on our member transactions and pay for order flow, digital assets transaction fees and share lending arrangements in SoFi Invest. We also earn referral fees in connection with referral activity we facilitate through our platform. The referral fee is paid to us by third-party partners that offer services to end users who do not use one of our product offerings, but who were referred to the partners through our platform. Beginning in the third quarter of 2021, referral fees also include referral fulfillment fees earned for providing pre-qualified borrower referrals to a third-party partner who separately contracts with a loan originator.

Our CODM considers net interest income in addition to contribution profit (loss) in evaluating the performance of our Financial Services segment and making resource allocation decisions. Under the FTP framework, the Financial Services segment earns interest income that is reflective of an FTP credit for deposits provided to the overall business, as well as incurs interest expense that is reflective of an FTP charge related to the use of funding for SoFi Credit Card.

Corporate/Other. Non-segment operations are classified as Corporate/Other (previously referred to as “Other”), which includes net revenues associated with corporate functions that are not directly related to a reportable segment. Beginning in the first quarter of 2022, net interest income (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), 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. During the six months ended June 30, 2021, net revenue (loss) within Corporate/Other also included earnings in connection with related party transactions. Refer to Note 14 for further discussion of our related party transactions.

Segment Results

The following tables present financial information, including the measure of contribution profit (loss), for each reportable segment for the periods indicated:


Three Months Ended June 30, 2022	Lending(2)		Technology Platform(1)		Financial Services(1)(2)		Reportable Segments Total(2)		Corporate/Other(1)(2)		Total
Net interest income (expense)	$	114,003	$	—	$	12,925	$	126,928	$	(4,199)	$	122,729
Noninterest income (loss)	143,114		83,899		17,438		244,451		(4,653)		239,798
Total net revenue (loss)	$	257,117	$	83,899	$	30,363	$	371,379	$	(8,852)	$	362,527
Servicing rights – change in valuation inputs or assumptions(3)	(9,098)		—		—		(9,098)
Residual interests classified as debt – change in valuation inputs or assumptions(4)	2,662		—		—		2,662
Directly attributable expenses	(108,690)		(62,058)		(84,063)		(254,811)
Contribution profit (loss)	$	141,991	$	21,841	$	(53,700)	$	110,132

Three Months Ended June 30, 2021	Lending		Technology Platform		Financial Services		Reportable Segments Total		Corporate/Other		Total
Net interest income (expense)	$	56,822	$	(32)	$	542	$	57,332	$	(1,320)	$	56,012
Noninterest income	109,469		45,329		16,497		171,295		3,967		175,262
Total net revenue	$	166,291	$	45,297	$	17,039	$	228,627	$	2,647	$	231,274
Servicing rights – change in valuation inputs or assumptions(3)	224		—		—		224
Residual interests classified as debt – change in valuation inputs or assumptions(4)	5,717		—		—		5,717
Directly attributable expenses	(83,044)		(32,284)		(41,784)		(157,112)
Contribution profit (loss)	$	89,188	$	13,013	$	(24,745)	$	77,456

Six Months Ended June 30, 2022	Lending(2)		Technology Platform(1)		Financial Services(1)(2)		Reportable Segments Total(2)		Corporate/Other(1)(2)		Total
Net interest income (expense)	$	208,357	$	—	$	18,807	$	227,164	$	(9,502)	$	217,662
Noninterest income (loss)	301,749		144,704		35,099		481,552		(6,343)		475,209
Total net revenue (loss)	$	510,106	$	144,704	$	53,906	$	708,716	$	(15,845)	$	692,871
Servicing rights – change in valuation inputs or assumptions(3)	(20,678)		—		—		(20,678)
Residual interests classified as debt – change in valuation inputs or assumptions(4)	5,625		—		—		5,625
Directly attributable expenses	(220,411)		(104,608)		(157,121)		(482,140)
Contribution profit (loss)	$	274,642	$	40,096	$	(103,215)	$	211,523


Six Months Ended June 30, 2021	Lending		Technology Platform		Financial Services		Reportable Segments Total		Corporate/Other		Total
Net interest income (expense)	$	108,599	$	(68)	$	771	$	109,302	$	(6,010)	$	103,292
Noninterest income	205,669		91,430		22,731		319,830		4,136		323,966
Total net revenue (loss)	$	314,268	$	91,362	$	23,502	$	429,132	$	(1,874)	$	427,258
Servicing rights – change in valuation inputs or assumptions(3)	12,333		—		—		12,333
Residual interests classified as debt – change in valuation inputs or assumptions(4)	13,668		—		—		13,668
Directly attributable expenses	(163,395)		(62,664)		(83,766)		(309,825)
Contribution profit (loss)	$	176,874	$	28,698	$	(60,264)	$	145,308

____________________

(1)During the three and six months ended June 30, 2022, total net revenue for the Technology Platform segment included $953 and $1,723, respectively, of intercompany fees earned by Galileo from SoFi, which is a Galileo client. There is an equal and offsetting expense reflected within the Financial Services segment directly attributable expenses representing the intercompany fees incurred to Galileo. The intercompany revenue and expense are eliminated in consolidation. The revenue is eliminated within Corporate/Other and the expense is adjusted in our reconciliation of directly attributable expenses below. We did not recast the segment information for these intercompany amounts for the three and six months ended June 30, 2021, but rather reflected the full year 2021 impact within the fourth quarter of 2021, as inter-quarter amounts were determined to be immaterial. Additionally, for both the three and six months ended June 30, 2022, total net revenue for the Technology Platform segment included $718 of intercompany fees earned by Technisys from Galileo, which is a Technisys client. There is an equal and offsetting expense reflected within the Technology Platform segment directly attributable expenses representing the intercompany fees incurred by Galileo to Technisys. The intercompany revenue and expense are eliminated in consolidation. The revenue is eliminated within Corporate/Other and the expense is adjusted in our reconciliation of directly attributable expenses below.

(2)During the first quarter of 2022, we implemented a centralized FTP framework to attribute net interest income to our business segments based on their usage and/or provision of funding, which impacted the measure of net interest income and, thereby, total net revenue and contribution profit (loss) in our Lending and Financial Services segments, as well as the total net revenue in Corporate/Other, but had no impact on our consolidated results of operations. The net interest income presented within Corporate/Other represents the residual impact of the FTP charges and FTP credits on our reportable segments.

(3)Reflects changes in fair value inputs and assumptions, including market servicing costs, conditional prepayment and default rates and discount rates. This non-cash change, which is recorded within noninterest income in the unaudited condensed consolidated statements of operations and comprehensive income (loss) is unrealized during the period and, therefore, has no impact on our cash flows from operations. As such, the changes in fair value attributable to assumption changes are adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations.

(4)Reflects changes in fair value inputs and assumptions, including conditional prepayment and default rates and discount rates. When third parties finance our consolidated VIEs through purchasing residual interests, we receive proceeds at the time of the securitization close and, thereafter, pass along contractual cash flows to the residual interest owner. These obligations are measured at fair value on a recurring basis, with fair value changes recorded within noninterest income in the unaudited condensed consolidated statements of operations and comprehensive income (loss). The fair value change attributable to assumption changes has no impact on our initial financing proceeds, our future obligations to the residual interest owner (because future residual interest claims are limited to securitization collateral cash flows), or the general operations of our business. As such, this non-cash change in fair value during the period is adjusted to provide management and financial users with better visibility into the cash flows available to finance our operations.

The following table reconciles reportable segments total contribution profit to loss before income taxes for the periods presented. Expenses not allocated to reportable segments represent items that are not considered by our CODM in evaluating segment performance or allocating resources.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Reportable segments total contribution profit	$	110,132	$	77,456	$	211,523	$	145,308
Corporate/Other total net revenue (loss)	(8,852)		2,647		(15,845)		(1,874)
Intercompany expenses	1,671		—		2,441		—
Servicing rights – change in valuation inputs or assumptions	9,098		(224)		20,678		(12,333)
Residual interests classified as debt – change in valuation inputs or assumptions	(2,662)		(5,717)		(5,625)		(13,668)
Expenses not allocated to segments:
Share-based compensation expense	(80,142)		(52,154)		(157,163)		(89,608)
Depreciation and amortization expense	(38,056)		(24,989)		(68,754)		(50,966)
Fair value change of warrant liabilities	—		(70,989)		—		(160,909)
Employee-related costs(1)	(45,316)		(36,944)		(88,006)		(69,224)
Special payment(3)	—		(21,181)		—		(21,181)
Other corporate and unallocated expenses(2)	(41,589)		(33,297)		(104,570)		(67,402)
Loss before income taxes	$	(95,716)	$	(165,392)	$	(205,321)	$	(341,857)

__________________

(1)Includes compensation, benefits, recruiting, certain occupancy-related costs and various travel costs of executive management, certain technology groups and general and administrative functions that are not directly attributable to the reportable segments.

(2)Represents corporate overhead costs that are not allocated to reportable segments, which primarily includes corporate marketing and advertising costs, tools and subscription costs, professional services costs, corporate insurance expense and transaction-related expenses.

(3)Represents a special payment to the Series 1 preferred stockholders in connection with the Business Combination.

No single customer accounted for more than 10% of our consolidated revenues for any of the periods presented.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Regulatory Capital Requirements under Banking Regulations [Abstract]

Regulatory Capital

6 Months Ended

Jun. 30, 2022

Regulatory Capital

SoFi Technologies, a bank holding company, and SoFi Bank, a nationally chartered association, are required to comply with applicable capital adequacy regulations established by U.S banking regulators.

These requirements establish required minimum ratios for Common Equity Tier 1 (“CET1”) risk-based capital, Tier 1 risk-based capital, total risk-based capital and a Tier 1 leverage ratio; set risk-weighting for assets and certain other items for purposes of the risk-based capital ratios; and define what qualifies as capital for purposes of meeting the capital requirements. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company’s financial statements. Additionally, regulatory capital rules include a capital conservation buffer of 2.5% that is added on top of each of the minimum risk-based capital ratios in order to avoid restrictions on capital distributions and discretionary bonuses.

The risk- and leverage-based capital ratios and amounts as of June 30, 2022 are presented below:



June 30, 2022	Amount		Ratio		Required Minimum(1)		Well-Capitalized Minimum(2)
SoFi Bank
CET1 risk-based capital	$	945,290	23.9	%	7.0	%	6.5	%
Tier 1 risk-based capital	945,290		23.9	%	8.5	%	8.0	%
Total risk-based capital	968,087		24.5	%	10.5	%	10.0	%
Tier 1 leverage	945,290		32.6	%	4.0	%	5.0	%

Risk-weighted assets	$	3,952,945
Quarterly adjusted average assets	2,895,231

SoFi Technologies
CET1 risk-based capital	$	3,035,247	30.2	%	7.0	%	N/A
Tier 1 risk-based capital	3,035,247		30.2	%	8.5	%	N/A
Total risk-based capital	3,378,418		33.6	%	10.5	%	N/A
Tier 1 leverage	3,035,247		34.4	%	4.0	%	N/A

Risk-weighted assets	$	10,057,053
Quarterly adjusted average assets	8,832,284

____________________

(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.

As of June 30, 2022, our regulatory capital ratios exceeded the thresholds required to be regarded as a well-capitalized institution, and meet all capital adequacy requirements to which we are subject. There have been no events or conditions since June 30, 2022 that management believes would change the categorization.

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Management of the Company performed an evaluation of subsequent events that occurred after the balance sheet date through the date of this Quarterly Report on Form 10-Q. On July 12, 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 the date of this filing, the Amended and Restated 2021 Plan includes an aggregate of 104,983,148 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.

Organization, Consolidation and Presentation of Financial Statements (Policies)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned and majority-owned subsidiaries and certain consolidated VIEs. All intercompany accounts were eliminated in consolidation. The unaudited condensed consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and in accordance with the rules and regulations of the SEC. We condensed or omitted certain notes and other financial information from the interim financial statements presented herein. The financial data and other information disclosed in these Notes to Unaudited Condensed Consolidated Financial Statements related to the three and six months ended June 30, 2022 and 2021 are unaudited and should be read in conjunction with the annual consolidated statements included in our annual filing on Form 10-K filed with the SEC on March 1, 2022. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the Company’s financial condition and results of operations and cash flows for the interim periods presented. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022. In our unaudited condensed consolidated statements of operations and comprehensive income (loss), we renamed the financial statement line item for noninterest income—technology platform fees to noninterest income—technology products and solutions to accommodate noninterest income earned from Technisys, which we acquired in the first quarter of 2022. See Note 1 for our presentation of disaggregated revenue and Note 2 for our discussion of business combinations.
Use of Judgments, Assumptions and Estimates	The preparation of our unaudited condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make assumptions and estimates that affect the amounts reported in our unaudited condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other factors it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of our assets and liabilities. These judgments, assumptions and estimates include, but are not limited to, the following: (i) fair value measurements; (ii) share-based compensation expense; (iii) consolidation of variable interest entities; and (iv) business combinations. These judgments, estimates and assumptions are inherently subjective in nature and, therefore, actual results may differ from our estimates and assumptions.
Cash and Cash Equivalents	Cash and cash equivalents primarily include unrestricted deposits with financial institutions in checking, money market and short-term certificate of deposit accounts and certain short-term commercial paper. We consider all highly liquid investments with original maturity dates of three months or less to be cash equivalents.
Restricted Cash and Restricted Cash Equivalents	Restricted cash and restricted cash equivalents consist primarily of cash deposits, certificate of deposit accounts held on reserve, money market funds held by consolidated VIEs, and collection balances. These accounts are earmarked as restricted because the balances are either member balances held in our custody, cash segregated for regulatory purposes associated with brokerage activities, escrow requirements for certain debt facilities and derivative agreements, deposits required by various bank holding companies we partner with (“Member Banks”) that support one or more of our products, loan collection balances awaiting disbursement, consolidated VIE cash balances that we cannot use for general operating purposes, or other legally restricted balances.
Loans	Our loan portfolio consists of (i) personal loans, student loans and home loans, which are held for sale and measured at fair value, and (ii) credit card loans, and commercial and consumer banking loans, which are measured at amortized cost. The commercial and consumer banking portfolio is primarily inclusive of commercial real estate loans, commercial and industrial loans and residential real estate and other consumer loans. Loans Measured at Fair Value Loans that we intend to sell to third-party purchasers or for which we do not have the ability and intent to hold for the foreseeable future are classified as held for sale. We elected the fair value option to measure our personal loans, student loans and home loans, as we believe that fair value best reflects the expected economic performance of the loans, as well as our intentions given our gain-on-sale origination model. Therefore, these loans are carried at fair value on a recurring basis. All direct fees and costs related to the origination process are recognized in earnings as earned or incurred. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss). We record cash flows related to loans held for sale within cash flows from operating activities in the unaudited condensed consolidated statements of cash flows. Securitized loans are assets held by consolidated special purpose entities (“SPE”) as collateral for bonds issued, for which fair value changes are recorded within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Gains or losses recognized upon deconsolidation of a VIE are also recorded within noninterest income—securitizations. Loans Measured at Amortized Cost For our loans measured at amortized cost, direct loan origination costs are deferred and amortized on a straight-line basis over the privilege period (12 months) for credit card loans and amortized using the effective interest method over the contractual term of the loans for commercial and consumer banking loans, within interest income—loans in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three and six months ended June 30, 2022, we amortized $2,088 and $3,685, respectively, of deferred costs into interest income and had a remaining balance of deferred costs of $4,600 as of June 30, 2022. Commercial and consumer banking loans are reported as delinquent when they become 30 or more days past due. For all commercial and consumer banking loans, we stop accruing interest and reverse all accrued but unpaid interest after 90 days of delinquency. For consumer banking loans, delinquent loans are charged off after 120 days of delinquency or on the date of confirmed loss. Purchased Credit Deteriorated Assets In connection with the Bank Merger, as further discussed in Note 2, we obtained purchased credit deteriorated (“PCD”) loans. PCD loans are acquired financial assets (or groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination. Indicators that an acquired asset may meet the definition of a PCD asset include days past due status, nonaccrual status, troubled debt restructuring status and other loan agreement violations. We were required to record an allowance for the acquired PCD loans, with a corresponding increase to the amortized cost basis as of the acquisition date. Recognition of the initial allowance for credit losses upon the acquisition of PCD loans does not impact net income. Changes in estimates of expected credit losses after acquisition are recognized through the provision for credit losses. See Note 7 for the rollforward of our allowance for credit losses. Troubled Debt Restructuring In connection with the Bank Merger, as further discussed in Note 2, we obtained troubled debt restructuring (“TDR”) loans. TDR loans are those for which the contractual terms have been restructured to grant one or more concessions to a borrower who is experiencing financial difficulty. Concessions may include several types of assistance to aid customers and maximize payments received, and vary by borrower-specific characteristics. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs. TDRs identified by Golden Pacific prior to the acquisition were recorded at fair value with a new accounting basis established as of the date of acquisition. There were no modifications subsequent to acquisition.
Allowance for Credit Losses	As of June 30, 2022, we applied ASC 326, Financial Instruments—Credit Losses (“ASC 326”), to the following: (i) cash equivalents and restricted cash equivalents, (ii) accounts receivable from contracts with customers, inclusive of servicing related receivables, (iii) margin receivables, which were attributable to our activities at 8 Limited, (iv) certain loan repurchase reserves representing guarantees of credit exposure, (v) loans measured at amortized cost, including credit card, and commercial and consumer banking loans acquired during the first quarter of 2022, and (vi) investments in available-for-sale debt securities. Our approaches to measuring the allowance for credit losses are disclosed in our Annual Report on Form 10-K. See Note 7 for a rollforward of the allowance for credit losses. Investments in Available-For-Sale Debt Securities An allowance for credit losses on our investments in available-for-sale (“AFS”) debt securities is required for any portion of impaired securities that is attributable to credit-related factors. As of June 30, 2022, we concluded that the credit-related impairment was immaterial. We did not recognize an allowance for credit losses on impaired investments in AFS debt securities as of June 30, 2022.
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 our unaudited condensed 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 in the unaudited condensed consolidated statements of operations and comprehensive income (loss).
Restricted Investments	Subsequent to operating SoFi Bank, we have investments in Federal Reserve Bank (“FRB”) stock and Federal Home Loan Bank (“FHLB”) stock, which are restricted investment securities that are not marketable. These investments are presented within other assets in our unaudited condensed consolidated balance sheets and are carried at cost and reviewed for impairment if indicators of impairment exist at the reporting date.
Equity Method Investments	In August 2021, we purchased a 5% interest in Lower Holding Company (“Lower”) for $20,000 and were granted a seat on Lower’s board of directors. We accounted for the investment under the equity method of accounting. The investment was not deemed to be significant under either Regulation S-X, Rule 3-09 or Rule 4-08(g). In January 2022, we relinquished our seat on Lower’s board of directors, and have no further rights to a seat on Lower’s board of directors. As such, we no longer have significant influence over the investee, and we ceased recognizing Lower equity investment income subsequent to that date. Our equity method investment income for the six months ended June 30, 2022 was immaterial. Additionally, we did not receive any distributions during the six months ended June 30, 2022. As of June 30, 2022, our investment was presented within other assets in the unaudited condensed consolidated balance sheets and was measured using the measurement alternative method of accounting, which is further discussed in Note 8.
Property, Equipment and Software	Software includes software acquired in business combinations, purchased software and capitalized software development costs. The capitalization of software development costs is based on whether the software is for internal use, or is to be sold or otherwise marketed. Costs related to internally-developed software for internal use are capitalized when preliminary project efforts are successfully completed, and it is probable that both the project will be completed and the software will be used as intended. For software to be sold or marketed, development costs are capitalized after the technological feasibility of the software has been established. Capitalized costs consist of salaries and compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts and costs incurred for upgrades and functionality enhancements. Research and development costs incurred prior to the establishment of technological feasibility (for software to be sold or marketed) or prior to completion of preliminary project efforts (for internal use software) are expensed as incurred.
Safeguarding Assets and Liabilities	Through our SoFi Invest product (via our wholly-owned subsidiary, SoFi Digital Assets, LLC, a licensed money transmitter), our members can invest in digital assets. We engage third parties to provide custodial services for our digital assets offering, which includes 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. We currently utilize two third-party custodians. Therefore, we have concentration risk in the event the custodian is not able to perform in accordance with our agreement. In accordance with Staff Accounting Bulletin No. 121 (“SAB 121”), which is further discussed under “Recently Adopted Accounting Standards” in this Note 1, we recognize a digital assets safeguarding liability within accounts payable, accruals and other liabilities in our unaudited condensed 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 in our unaudited condensed consolidated balance sheets. The safeguarding liability and corresponding safeguarding asset are measured and recorded at the fair value of the digital assets held by the custodians at each reporting date, as measured in accordance with ASC 820, Fair Value Measurement (“ASC 820”). Subsequent changes to the fair value measure are reflected as equal and offsetting adjustments to the carrying values of the safeguarding liability and corresponding safeguarding asset. We evaluate any potential loss events, such as theft, loss or destruction of the cryptographic keys, that may affect the measurement of the safeguarding asset, which would be reflected in our results of operations in the period the loss occurs. Measurement changes do not impact our unaudited condensed consolidated statements of operations and comprehensive income (loss) unless such a loss event is identified. As of June 30, 2022, we did not identify any loss events. See Note 8 for additional information on the fair value measurement of the safeguarding liability and corresponding safeguarding asset.
Foreign Currency Translation Adjustments	We revalue assets, liabilities, income and expense denominated in non-United States currencies into United States dollars using applicable exchange rates. For foreign subsidiaries in which the functional currency is the subsidiary’s local currency, gains and losses relating to foreign currency translation adjustments are included in accumulated other comprehensive loss in our unaudited condensed consolidated balance sheets. For foreign subsidiaries in which the functional currency is the United States Dollar, gains and losses relating to foreign currency transaction adjustments are included within earnings in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Due to the highly inflationary economic environment in Argentina, we use the United States Dollar as the functional currency of our Argentinian operations in accordance with ASC 830, Foreign Currency Matters. Our activities in Argentina are related to our Technology Platform segment and commenced in the first quarter of 2022 with the Technisys Merger.
Revenue Recognition	In accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”), in each of our revenue arrangements, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects our expected consideration in exchange for those goods or services. Our arrangements accounted for under ASC 606 are discussed in our Annual Report on Form 10-K, with notable updates provided herein. Technology Products and Solutions We earn fees for providing an integrated platform as a service for financial and non-financial institutions. Within our technology products and solutions fee arrangements, certain contracts contain a provision for a fixed, upfront implementation fee related to setup activities, which represents an advance payment for future technology platform services. In these arrangements, our implementation fees are recognized ratably over the contract life, as we consider the implementation fee partially earned each month that we meet our performance obligation over the life of the contract. Commencing in March 2022 with the Technisys Merger, we earn subscription and service fees for providing software licenses and associated services. Software license and service arrangements comprise one or more software licenses, implementation, maintenance, and other software-related services. We recognize revenue related to software licenses upon delivery of the license, as we consider the license to be satisfied at a point in time. Software is considered delivered when control passes to the customer following the user-acceptance testing period. We charge a recurring subscription fee for the software license and related maintenance services. Other software-related services are billed on a periodic basis as the services are provided. Certain arrangements for software and related services contain a provision for a fixed upfront payment, which in some cases may provide a material right to the customer with respect to the start and renewal of the subscription. Fees charged are part of the transaction price and are allocated to the performance obligations on a relative standalone selling price basis, as follows: •The standalone selling price of maintenance varies in proportion with the standalone selling price of the underlying license. We allocate the subscription fee between the license and maintenance based upon this proportion. We recognize the maintenance fees ratably over the maintenance period, as we stand ready to provide maintenance services during the period. •Non-maintenance software-related services fees are recognized over the period during which the services are provided, as we consider these services to be satisfied over time. We use an input model based on hours incurred to provide the services, which directly correspond with the value to which the customer is entitled. •If a contract contains a substantive upfront payment that creates a material right to subscribe or renew a subscription, the upfront payment is allocated to the material right and is recognized over the period of benefit associated with the right to subscribe or renew a subscription, typically the product life. We had deferred revenues of $7,602 and $2,553 as of June 30, 2022 and December 31, 2021, respectively, which are presented within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets. During the three and six months ended June 30, 2022, we recognized revenue of $1,989 and $2,774, respectively, associated with deferred revenues within noninterest income—technology products and solutions in the unaudited condensed consolidated statements of operations and comprehensive income (loss). During the three and six months ended June 30, 2021, we recognized revenue of $182 and $338, respectively, associated with deferred revenues. Sales commissions: Capitalized sales commissions presented within other assets in the unaudited condensed consolidated balance sheets, which are incurred in connection with obtaining our technology products and solutions, were $1,087 and $678 as of June 30, 2022 and December 31, 2021, respectively. Additionally, we incur ongoing monthly commissions, which are expensed as incurred, as the benefit of such sales efforts are realized only in the period in which the commissions are earned. During the three and six months ended June 30, 2022, commissions recorded within noninterest expense—sales and marketing in the unaudited condensed consolidated statements of operations and comprehensive income (loss) were $1,096 and $2,217, respectively, of which $107 and $189, respectively, represented amortization of capitalized sales commissions. During the three and six months ended June 30, 2021, commissions were $961 and $1,770, respectively, of which $79 and $143, respectively, represented amortization of capitalized sales commissions. Referrals We earn specified referral fees in connection with referral activities we facilitate through our platform. This arrangement contains variable consideration that is constrained due to the potential reversal of referral fulfillment fees. We recognize a liability within accounts payable, accruals and other liabilities in the unaudited condensed consolidated balance sheets for the estimated referral fulfillment fee penalty, which represents the amount of consideration received that we estimate will reverse. The liability was $522 and $118 as of June 30, 2022 and December 31, 2021, respectively. Contract Balances As of June 30, 2022 and December 31, 2021, accounts receivable, net associated with revenue from contracts with customers were $60,562 and $33,748, respectively, which were reported within other assets in the unaudited condensed consolidated balance sheets. The increase in contract balances during the current period includes the effect of the Technisys Merger, which contributed $18,192 to the balance as of June 30, 2022.
Recently Adopted Accounting Standards and Recent Accounting Standards Issued, But Not Yet Adopted	Recently Adopted Accounting Standards In October 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, rather than at fair value. The standard should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We early adopted the standard effective January 1, 2022 and applied its provisions to our acquisitions in 2022. The adoption of this standard did not have a material impact on our consolidated financial statements. In March 2022, the SEC released SAB 121, which provides interpretive guidance for an entity to consider when it has obligations to safeguard crypto-assets held for its platform users, whether directly or through an agent or another third party acting on its behalf. SAB 121 requires an entity to record a liability to reflect its obligation to safeguard the crypto-assets, as well as a corresponding safeguarding asset, both of which should be measured at the fair value of the crypto-assets being safeguarded for the entity’s users. Entities should evaluate any potential loss events, such as theft, loss or destruction of the cryptographic keys, that may affect the measurement of the asset. SAB 121 also requires financial statement disclosure, including the nature and amount of crypto-assets that the entity holds for its users, any vulnerabilities that may arise as a result of any concentration in crypto-assets, and information about who is responsible for the record-keeping of the crypto-assets, the holding of the cryptographic keys and safeguarding the crypto-assets, among other disclosure considerations. Disclosures must also be made in accordance with ASC 820. SAB 121 was effective for us for the interim period ending June 30, 2022. We applied the guidance through retrospective application as of January 1, 2022, at which time the value of our members’ digital assets was $266,014. As of June 30, 2022, the adoption date, the value of our members’ digital assets was $112,010, which is reflected as a digital assets safeguarding liability and corresponding digital assets safeguarding asset within accounts payable, accruals and other liabilities and other assets, respectively, in our unaudited condensed consolidated balance sheets. Our application of this guidance did not impact our results of operations. We also enhanced our disclosures around our digital assets arrangements and our role in safeguarding them. See Note 1 and Note 8 for the applicable disclosures. Recent Accounting Standards Issued, But Not Yet Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU addresses two topics: (i) TDR by creditors, and (ii) vintage disclosures for gross write offs. Under the TDR provisions, the ASU eliminates the recognition and measurement guidance under ASC 310-40, Receivables — Troubled Debt Restructurings by Creditors, and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan, consistent with the accounting for other loan modifications. Additionally, the ASU enhances existing disclosure requirements around TDRs and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Under the vintage disclosure provisions, the ASU requires the entity to disclose current period gross write offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20, Financial Instruments — Credit Losses — Measured at Amortized Cost. The standard is effective for fiscal years and interim periods beginning after December 15, 2022. Early adoption is permitted. If an entity elects to early adopt this standard in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt either of the two topics separately, or both. The standard should be applied prospectively; however, for the TDR provisions, an entity has the option to apply a modified retrospective transition method. We are currently evaluating the effect of adopting this standard on our consolidated financial statements and related disclosures.

Organization, Consolidation and Presentation of Financial Statements (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Gain Loss from Derivative Instruments

The following table presents the gains (losses) recognized on our derivative instruments during the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Derivative contracts to manage future loan sale execution risk(1)	$	69,535	$	(13,937)	$	230,142	$	22,134
Derivative contracts to manage securitization investment interest rate risk(1)(2)	2,749		—		9,068		—
Interest rate lock commitments (“IRLCs”)(1)	4,159		642		(2,639)		(7,860)
Interest rate caps(1)	(903)		—		(3,027)		—
Purchase price earn-out(1)	211		—		1,042		—

Third-party warrants(3)	(244)		—		(169)		—

Total	$	75,507	$	(13,295)	$	234,417	$	14,274

_____________________

(1) Recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

(2) Represents derivative instruments utilized to manage interest rate risk associated with certain of our securitization investments.

(3) For the three and six months ended June 30, 2022, includes $(461) and $(603), respectively, recorded within noninterest income—other and $217 and $434, respectively, recorded within noninterest expense—general and administrative in the unaudited condensed consolidated statements of operations and comprehensive income (loss), the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired of $964, as we are also a customer of the third party.

The following table presents information about derivative instruments subject to enforceable master netting arrangements as of the dates indicated:


	June 30, 2022				December 31, 2021
	Gross Derivative Assets		Gross Derivative Liabilities		Gross Derivative Assets		Gross Derivative Liabilities
Interest rate swaps	$	—	$	(21,762)	$	5,444	$	—
Interest rate caps	—		(3,695)		—		(668)
Home loan pipeline hedges	2,243		(259)		117		(313)

Total, gross	$	2,243	$	(25,716)	$	5,561	$	(981)
Derivative netting	(1,371)		1,371		(117)		117
Total, net(1)	$	872	$	(24,345)	$	5,444	$	(864)

_____________________

(1) As of June 30, 2022 and December 31, 2021, we had a cash collateral requirement of $21,762 and $299, respectively, related to these instruments.

Schedule of Derivative Notional Amounts Outstanding

The following table presents the notional amounts of derivative contracts outstanding as of the dates indicated:


	June 30, 2022		December 31, 2021
Derivative contracts to manage future loan sale execution risk:
Interest rate swaps	$	5,360,000	$	4,210,000
Home loan pipeline hedges	326,000		421,000
Interest rate caps	405,000		405,000

Interest rate swaps(1)	310,000		—
IRLCs(2)	314,096		357,529
Interest rate caps(3)	405,000		405,000
Total	$	7,120,096	$	5,798,529

_____________________

(1) Represents interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments.

(2) Amounts correspond with home loan funding commitments subject to IRLC agreements.

(3) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk.

While the notional amounts of derivative instruments give an indication of the volume of our derivative activity, they do not necessarily represent amounts exchanged by parties and are not a direct measure of our financial exposure.

Schedule of Revenues

The table below presents revenue from contracts with customers disaggregated by type of service, which best depicts how the revenue and cash flows are affected by economic factors, and by the reportable segment to which each revenue stream relates. Revenues from contracts with customers are presented within noninterest income—technology products and solutions and noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). There were no revenues from contracts with customers attributable to our Lending segment for any of the periods presented.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Financial Services
Referrals	$	8,805	$	3,140	$	16,573	$	5,394
Brokerage	4,156		7,054		8,886		11,666
Payment network	3,007		1,473		7,293		2,675
Equity capital markets services	—		1,760		—		1,760
Enterprise services	225		2,696		428		2,754
Total	$	16,193	$	16,123	$	33,180	$	24,249
Technology Platform
Technology services	$	81,111	$	44,950	$	140,268	$	90,609
Software licenses	558		—		1,258		—
Payment network	558		379		736		821
Total	$	82,227	$	45,329	$	142,262	$	91,430
Total Revenue from Contracts with Customers
Technology services	$	81,111	$	44,950	$	140,268	$	90,609
Software licenses	558		—		1,258		—
Referrals	8,805		3,140		16,573		5,394
Brokerage	4,156		7,054		8,886		11,666
Payment network	3,565		1,852		8,029		3,496
Equity capital markets services	—		1,760		—		1,760
Enterprise services	225		2,696		428		2,754
Total	$	98,420	$	61,452	$	175,442	$	115,679

Schedule of Interest-Bearing Deposits

The following table presents a detail of interest-bearing deposits as of the date indicated:


	June 30, 2022
Interest-bearing deposits:
Demand deposits(1)	$	1,561,339
Savings deposits(1)	1,049,650
Time deposits	18,474
Total interest-bearing deposits	$	2,629,463

_____________________

(1) For deposit liabilities with no defined maturities, the fair value of the liabilities reflects the amount payable on demand at the reporting date.

Schedule of Future Maturities of Time Deposits

As of June 30, 2022, future maturities of our total time deposits were as follows:


Remainder of 2022	$	13,842
2023	3,565
2024	654
2025	30
2026	281
Thereafter	102
Total	$	18,474

Tabular disclosure of type of deposit liability.

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Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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Business Combination and Asset Acquisition [Abstract]

Business Combinations (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Purchase Price Consideration

The following table presents the components of the purchase consideration to acquire Technisys:


Fair value of common stock issued(1)	$	875,042
Fair value of awards assumed(2)	2,855
Amounts payable to settle vested employee performance awards(3)	37,297
Settlement of pre-combination transactions between acquirer and acquiree	235
Total purchase consideration	$	915,429

___________________

(1) Reflects the shares of SoFi common stock issued upon closing the acquisition of 81,856,112, inclusive of 6,903,663 shares held in escrow, multiplied by the closing stock price of SoFi common stock on the closing date of the Technisys Merger. As of June 30, 2022, the purchase price allocation process for Technisys was not finalized, as further discussed below.

(2) We contemporaneously converted outstanding performance awards into restricted stock units (“RSUs”) to acquire common stock of SoFi (“Replacement Awards”). The fair value of awards assumed in the purchase consideration was based on the closing stock price of SoFi common stock on the closing date of the Technisys Merger. Refer to Note 12 for additional information on our RSUs, including the Replacement Awards.

(3) We made payments of $14,773 and $17,641 related to this component of purchase consideration during the three and six months ended June 30, 2022, respectively.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the allocation of the preliminary total purchase consideration to the estimated fair values of the identified assets acquired and liabilities assumed of Technisys as of the date of acquisition, as well as measurement period adjustments reflected in the second quarter of 2022, which also impacted the amount of goodwill:


	Preliminary Purchase Price Allocation		Measurement Period Adjustments(1)		Updated Purchase Price Allocation
Assets acquired
Cash and cash equivalents	$	25,710	$	—	$	25,710
Accounts receivable(2)	15,354		(2,303)		13,051
Intangible assets(3)	239,000		—		239,000
Operating lease right-of-use (“ROU”) assets	587		—		587
Other assets	1,011		2,361		3,372
Total identifiable assets acquired	281,662		58		281,720
Liabilities assumed
Accounts payable, accruals and other liabilities	16,462		7,500		23,962
Operating lease liabilities	587		—		587
Deferred income taxes(4)	55,104		2,239		57,343
Total liabilities assumed	72,153		9,739		81,892
Total identified net assets acquired	209,509		(9,681)		199,828
Goodwill(5)	705,920		9,681		715,601
Total consideration	$	915,429	$	—	$	915,429

_________________

(1)The measurement period adjustments did not have a significant impact on our results of operations. The adjustment to accounts payable, accruals and other liabilities includes a tax payable adjustment of $6,548.

(2)Included accounts receivable and unbilled revenue with a gross contractual amount of $15,407. At the date of acquisition, the Company expected $2,356 to be uncollectible.

(3)Intangible assets consist of finite-lived intangible assets, as follows:


	Gross carrying amount		Weighted-average useful life (years)
Developed technology(a)	$	187,000	8.8
Customer-related(b)	42,000		4.8
Trade names, trademarks and domain names(c)	10,000		8.8

__________________

(a) Valued using the Multi-Period Excess Earnings Method (“MPEEM”), which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset (and include an assumed technology migration curve), contributory asset charges and the applicable tax rate, and (ii) an assumed discount rate, which reflects the risk of the asset relative to the overall risk of Technisys.

(b) Valued using the With and Without Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual revenues and net cash flows both with the existing customer base and without the existing customer base, which include assumptions regarding revenue ramp-up periods and attrition rates, and (ii) an assumed discount rate, consistent with (a) above.

(c) Valued using the Relief from Royalty Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset, the probability of use of the asset, the royalty rate and the applicable tax rate, and (ii) the discount rate, consistent with (a) above.

(4)The deferred tax liabilities recognized in the acquisition were primarily related to the acquired intangible assets, in which the acquiree had a significantly lower tax basis compared to the fair value.

(5)The excess of the total purchase consideration over the fair value of the identified net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. The goodwill is subject to additional changes based on the outcome of the net working capital calculation referenced earlier in this footnote. Goodwill is primarily attributable to expected growth opportunities at Technisys, and secondarily attributable to the expected synergies from leveraging the Technisys technology to enhance and expand Galileo’s product offerings and operations, as well as expand its market reach. As such, all of the goodwill is allocated to the Technology Platform segment.

Schedule of Finite-Lived Intangible Assets Acquired

Intangible assets consist of finite-lived intangible assets, as follows:


	Gross carrying amount		Weighted-average useful life (years)
Developed technology(a)	$	187,000	8.8
Customer-related(b)	42,000		4.8
Trade names, trademarks and domain names(c)	10,000		8.8

__________________

(a) Valued using the Multi-Period Excess Earnings Method (“MPEEM”), which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset (and include an assumed technology migration curve), contributory asset charges and the applicable tax rate, and (ii) an assumed discount rate, which reflects the risk of the asset relative to the overall risk of Technisys.

(b) Valued using the With and Without Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual revenues and net cash flows both with the existing customer base and without the existing customer base, which include assumptions regarding revenue ramp-up periods and attrition rates, and (ii) an assumed discount rate, consistent with (a) above.

(c) Valued using the Relief from Royalty Method, which is a form of the income approach. The significant assumptions include: (i) the estimated annual net cash flows, which are a function of expected earnings attributable to the asset, the probability of use of the asset, the royalty rate and the applicable tax rate, and (ii) the discount rate, consistent with (a) above.

Schedule of Pro Forma Information

The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations for the three months ended June 30, 2021, and six months ended June 30, 2022 and 2021 as if the business combination had occurred on January 1, 2021:


	Three Months Ended June 30,		Six Months Ended June 30,
	2021		2022		2021
Total net revenue	$	248,149	$	703,775	$	457,252
Net loss	(172,431)		(197,369)		(373,368)

Schedule of Goodwill

A rollforward of our goodwill balance is presented below as of the date indicated:


	June 30, 2022
Beginning balance	$	898,527
Less: accumulated impairment	—
Beginning balance, net	898,527
Additional goodwill recognized(1)	726,848

Ending balance(2)	$	1,625,375

_____________________

(1) The additional goodwill recognized as of June 30, 2022 includes $715,601 related to the Technisys Merger (inclusive of a measurement period adjustment in the second quarter of 2022) and $11,247 related to the Bank Merger.

(2) As of June 30, 2022, we had goodwill attributable to the following reportable segments: $1,588,216 to Technology Platform and $37,159 to Financial Services.

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Investments, Debt and Equity Securities [Abstract]

Investments in AFS Debt Securities (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Investments in Debt Securities

The following table presents our investments in AFS debt securities as of the dates indicated:


	June 30, 2022
	Amortized Cost(1)		Accrued Interest		Gross Unrealized Gains		Gross Unrealized Losses(2)		Fair Value
Investments in AFS debt securities(3):
U.S. Treasury securities	$	121,284	$	151	$	—	$	(3,249)	$	118,186
Multinational securities(4)	19,785		109		—		(692)		19,202
Corporate bonds	42,125		256		—		(2,477)		39,904

Agency mortgage-backed securities	9,650		24		—		(731)		8,943
Other asset-backed securities	9,583		5		—		(466)		9,122

Other(5)	2,741		21		—		(186)		2,576
Total investments in AFS debt securities	$	205,168	$	566	$	—	$	(7,801)	$	197,933

	December 31, 2021
	Amortized Cost		Accrued Interest		Gross Unrealized Gains		Gross Unrealized Losses(2)		Fair Value
Investments in AFS debt securities(3):
U.S. Treasury securities	$	103,014	$	73	$	—	$	(584)	$	102,503
Multinational securities(4)	19,911		109		—		(154)		19,866
Corporate bonds	39,894		235		—		(480)		39,649
Agency TBA(6)	7,457		13		4		(8)		7,466
Agency mortgage-backed securities	4,153		14		—		(31)		4,136
Other asset-backed securities	9,610		5		—		(91)		9,524
Commercial paper	9,939		—		—		—		9,939
Other(5)	1,818		13		—		(7)		1,824
Total investments in AFS debt securities	$	195,796	$	462	$	4	$	(1,355)	$	194,907

_____________________

(1) Amortized cost basis reflects the amortization of premiums of $186 and $477 during the three and six months ended June 30, 2022, respectively.

(2) As of June 30, 2022 and December 31, 2021, we determined that our unrealized loss positions related to credit losses were immaterial. Additionally, we do not intend to sell the securities in loss positions nor is it more likely than not that we will be required to sell the securities prior to recovery of the amortized cost basis. Further, no such investments have been in a continuous unrealized loss position for more than 12 months.

(3) Investments in AFS debt securities are recorded at fair value.

(4) Includes sovereign foreign and supranational bonds.

(5) Includes state and city municipal bond securities.

(6) Represented to-be-announced (“TBA”) securities, which were securities that were delivered under the purchase contract at a later date when the underlying security was issued. The December 31, 2021 balance was paid in cash during 2022.

Schedule of Investments by Contractual Maturity

The following table presents the amortized cost and fair value of our investments in AFS debt securities by contractual maturity as of the date indicated:


	Due Within One Year			Due After One Year Through Five Years			Due After Five Years Through Ten Years			Due After Ten Years			Total
June 30, 2022
Investments in AFS debt securities—Amortized cost:
U.S. Treasury securities	$	45,021		$	76,263		$	—		$	—		$	121,284
Multinational securities	3,942			15,843			—			—			19,785
Corporate bonds	328			38,441			3,356			—			42,125

Agency mortgage-backed securities	—			104			678			8,868			9,650
Other asset-backed securities	—			7,600			1,983			—			9,583

Other	600			1,207			—			934			2,741
Total investments in AFS debt securities	$	49,891		$	139,458		$	6,017		$	9,802		$	205,168
Weighted average yield for investments in AFS debt securities(1)	(1.19)		%	(4.49)		%	(4.73)		%	(22.78)		%	(4.57)		%

Investments in AFS debt securities—Fair value(2):
U.S. Treasury securities	$	43,986		$	74,049		$	—		$	—		$	118,035
Multinational securities	3,841			15,252			—			—			19,093
Corporate bonds	318			36,158			3,172			—			39,648

Agency mortgage-backed securities	—			98			630			8,191			8,919
Other asset-backed securities	—			7,224			1,893			—			9,117

Other	598			1,174			—			783			2,555
Total investments in AFS debt securities	$	48,743		$	133,955		$	5,695		$	8,974		$	197,367

_____________________

(1) The weighted average yield represents the effective yield for the investment securities and is computed based on the amortized cost of each security as of June 30, 2022.

(2) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $566 as of June 30, 2022.

Schedule of Proceeds and Gross Realized Gains and Losses

The following table presents the gross proceeds and gross realized gains and losses from sales, maturities and paydowns of our investments in AFS debt securities during the three and six months ended June 30, 2022. Realized gains and losses are presented within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). There were no transfers between classifications of our investments in AFS debt securities during the periods presented.


	Three Months Ended June 30, 2022		Six Months Ended June 30, 2022
Investments in AFS debt securities
Gross realized gains included in earnings	$	—	$	—
Gross realized losses included in earnings	(124)		(285)
Net realized losses	(124)		(285)
Gross proceeds from sales, maturities and paydowns(1)	$	7,788	$	37,403

_____________________

(1) Proceeds from maturities and paydowns of investments in AFS debt securities during the three and six months ended June 30, 2022 were $1,942 and $13,906, respectively.

Loans (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Loans Measured at Fair Value

Schedule of Loans

Below is a disaggregated presentation of our loans, inclusive of fair market value adjustments and accrued interest income and net of the allowance for credit losses, as applicable, as of the dates indicated:


	June 30,		December 31,
	2022		2021
Loans at fair value
Securitized student loans	$	466,865	$	574,328
Securitized personal loans	132,133		234,576
Student loans	3,247,510		2,876,509
Home loans	135,262		212,709
Personal loans	3,977,612		2,054,850
Total loans at fair value	7,959,382		5,952,972
Loans at amortized cost(1)
Credit card	173,867		115,912
Commercial and consumer banking:
Commercial real estate	67,742		—
Commercial and industrial	8,097		—
Residential real estate and other consumer	3,406		—
Total commercial and consumer banking	79,245		—

Total loans at amortized cost	253,112		115,912
Total loans	$	8,212,494	$	6,068,884

_____________________

(1) Amounts are presented net of the allowance for credit losses. See Note 1 for additional information on our loans at amortized cost as it pertains to the allowance for credit losses pursuant to ASC 326.

The following table summarizes the aggregate fair value of our loans measured at fair value on a recurring basis as of the dates indicated:


	Student Loans		Home Loans		Personal Loans		Total
June 30, 2022
Unpaid principal(1)	$	3,657,693	$	142,118	$	3,943,768	$	7,743,579
Accumulated interest	9,601		159		23,055		32,815
Cumulative fair value adjustments(1)	47,081		(7,015)		142,922		182,988
Total fair value of loans	$	3,714,375	$	135,262	$	4,109,745	$	7,959,382
December 31, 2021
Unpaid principal(1)	$	3,356,344	$	210,111	$	2,188,773	$	5,755,228
Accumulated interest	9,990		190		12,310		22,490
Cumulative fair value adjustments(1)	84,503		2,408		88,343		175,254
Total fair value of loans	$	3,450,837	$	212,709	$	2,289,426	$	5,952,972

__________________

(1) These items are impacted by charge-offs during the period.

The following table summarizes the aggregate fair value of loans 90 days or more delinquent as of the dates indicated. As delinquent personal loans and student loans are charged off after 120 days of delinquency, amounts presented below represent the fair value of loans that are 90 to 120 days delinquent. There were no home loans that were 90 days or more delinquent as of the dates presented.


	Student Loans		Personal Loans		Total
June 30, 2022
Unpaid principal	$	1,372	$	8,260	$	9,632
Accumulated interest	18		304		322
Cumulative fair value adjustments	(733)		(7,266)		(7,999)
Fair value of loans 90 days or more delinquent	$	657	$	1,298	$	1,955
December 31, 2021
Unpaid principal	$	1,589	$	4,765	$	6,354
Accumulated interest	32		149		181
Cumulative fair value adjustments	(865)		(4,189)		(5,054)
Fair value of loans 90 days or more delinquent	$	756	$	725	$	1,481

The following table presents the changes in our loans measured at fair value on a recurring basis:


	Student Loans		Home Loans		Personal Loans		Total
Three Months Ended June 30, 2022
Fair value as of March 31, 2022	$	3,737,439	$	146,658	$	3,118,788	$	7,002,885
Origination of loans	398,722		332,047		2,471,849		3,202,618
Principal payments	(167,049)		(701)		(461,178)		(628,928)
Sales of loans	(259,690)		(342,780)		(1,123,898)		(1,726,368)
Purchases(1)	5,274		330		67,189		72,793
Change in accumulated interest	(139)		(23)		5,162		5,000
Change in fair value(2)	(182)		(269)		31,833		31,382
Fair value as of June 30, 2022	$	3,714,375	$	135,262	$	4,109,745	$	7,959,382

Three Months Ended June 30, 2021
Fair value as of March 31, 2021	$	2,666,793	$	231,903	$	1,573,908	$	4,472,604
Origination of loans	859,497		792,228		1,294,384		2,946,109
Principal payments	(235,889)		(1,280)		(247,808)		(484,977)
Sales of loans	(610,941)		(841,642)		(970,135)		(2,422,718)
Purchases(1)	44,779		422		103,538		148,739
Change in accumulated interest	(403)		17		(153)		(539)
Change in fair value(2)	15,657		665		9,808		26,130
Fair value as of June 30, 2021	$	2,739,493	$	182,313	$	1,763,542	$	4,685,348

Six Months Ended June 30, 2022
Fair value as of January 1, 2022	$	3,450,837	$	212,709	$	2,289,426	$	5,952,972
Origination of loans	1,382,526		644,430		4,497,853		6,524,809
Principal payments	(394,164)		(5,101)		(833,632)		(1,232,897)
Sales of loans	(803,840)		(708,150)		(2,101,818)		(3,613,808)
Purchases(1)	121,707		828		227,937		350,472
Change in accumulated interest	(389)		(31)		10,745		10,325
Change in fair value(2)	(42,302)		(9,423)		19,234		(32,491)
Fair value as of June 30, 2022	$	3,714,375	$	135,262	$	4,109,745	$	7,959,382

Six Months Ended June 30, 2021
Fair value as of January 1, 2021	$	2,866,459	$	179,689	$	1,812,920	$	4,859,068
Origination of loans	1,864,182		1,527,832		2,100,073		5,492,087
Principal payments	(486,108)		(2,759)		(506,007)		(994,874)
Sales of loans	(1,547,101)		(1,519,208)		(1,749,576)		(4,815,885)
Purchases(1)	44,850		541		104,539		149,930
Change in accumulated interest	(1,652)		(18)		(2,340)		(4,010)
Change in fair value(2)	(1,137)		(3,764)		3,933		(968)
Fair value as of June 30, 2021	$	2,739,493	$	182,313	$	1,763,542	$	4,685,348

__________________

(1) Purchases reflect unpaid principal balance and relate to previously transferred loans. Purchase activity during the three and six months ended June 30, 2022 included securitization clean-up calls of $60,240 and $335,739, respectively. Additionally, during the three and six months ended June 30, 2022, the Company elected to purchase $7,290 and $7,290, respectively, of previously sold loans from certain investors. Purchase activity during the three and six months ended June 30, 2021 included securitization clean-up calls of $131,372 and $131,372, respectively. Additionally, during the three and six months ended June 30, 2021, the Company elected to purchase $15,185 and $15,185, respectively, of previously sold loans from certain investors. The Company was not required to buy back these loans. The remaining purchases during the periods presented related to standard representations and warranties pursuant to our various loan sale agreements.

(2) Changes in fair value of loans are recorded in the unaudited condensed consolidated statements of operations and comprehensive income (loss) within noninterest income—loan origination and sales for loans held on the balance sheet prior to transfer to a third party through a sale or to a VIE and within noninterest income—securitizations for loans in a consolidated VIE. Changes in fair value are impacted by valuation assumption changes, as well as sales price execution and amount of time the loans are held prior to sale. The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were $23,221 and $16,725 during the three and six months ended June 30, 2022, respectively, and $9,038 and $2,111 during the three and six months ended June 30, 2021, respectively. The 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.

The following table presents the changes in the residual investments and residual interests classified as debt, which are both measured at fair value on a recurring basis. We record changes in fair value within noninterest income—securitizations in the unaudited condensed consolidated statements of operations and comprehensive income (loss), a portion of which is subsequently reclassified to interest expense—securitizations and warehouses for residual interests classified as debt and to interest income—securitizations for residual investments, but does not impact the liability or asset balance, respectively.


	Residual Investments		Residual Interests Classified as Debt
Three Months Ended June 30, 2022
Fair value as of March 31, 2022	$	106,677	$	70,532

Change in valuation inputs or other assumptions(1)	290		2,662
Payments	(11,989)		(18,758)
Fair value as of June 30, 2022	$	94,978	$	54,436

Three Months Ended June 30, 2021
Fair value as of March 31, 2021	$	150,961	$	114,882
Additions	11,787		2,170
Change in valuation inputs or other assumptions(1)	3,355		5,717
Payments	(23,003)		(10,224)
Fair value as of June 30, 2021	$	143,100	$	112,545

Six Months Ended June 30, 2022
Fair value as of January 1, 2022	$	121,019	$	93,682

Change in valuation inputs or other assumptions(1)	1,052		5,625
Payments(2)	(27,093)		(44,871)
Fair value as of June 30, 2022	$	94,978	$	54,436

Six Months Ended June 30, 2021
Fair value as of January 1, 2021	$	139,524	$	118,298
Additions	38,168		2,170
Change in valuation inputs or other assumptions(1)	6,852		13,668
Payments(2)	(41,444)		(21,591)
Fair value as of June 30, 2021	$	143,100	$	112,545

___________________

(1)For residual investments, the estimated amounts of gains and losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the periods presented.

(2)Payments of residual investments included residual investment sales of $220 and $220 during the three and six months ended June 30, 2022, respectively, and $2,676 and $2,676 during the three and six months ended June 30, 2021, respectively.

The following table presents the changes in our IRLCs and student loan commitments, which are measured at fair value on a recurring basis. Changes in the fair values of IRLCs and student loan commitments are recorded within noninterest income—loan origination and sales in the unaudited condensed consolidated statements of operations and comprehensive income (loss).


	IRLCs		Student Loan Commitments
Three Months Ended June 30, 2022
Fair value as of March 31, 2022	$	(3,039)	$	23
Revaluation adjustments	1,120		(254)
Funded loans(1)	1,636		(19)
Unfunded loans(1)	1,403		(4)
Fair value as of June 30, 2022	$	1,120	$	(254)

Three Months Ended June 30, 2021
Fair value as of March 31, 2021	$	7,118	$	—
Revaluation adjustments	7,760		—
Funded loans(1)	(5,275)		—
Unfunded loans(1)	(1,843)		—
Fair value as of June 30, 2021	$	7,760	$	—

Six Months Ended June 30, 2022
Fair value as of January 1, 2022	$	3,759	$	2,220
Revaluation adjustments	(1,919)		(231)
Funded loans(1)	(565)		(2,140)
Unfunded loans(1)	(155)		(103)
Fair value as of June 30, 2022	$	1,120	$	(254)

Six Months Ended June 30, 2021
Fair value as of January 1, 2021	$	15,620	$	—
Revaluation adjustments	14,878		—
Funded loans(1)	(15,485)		—
Unfunded loans(1)	(7,253)		—
Fair value as of June 30, 2021	$	7,760	$	—

___________________

(1)For each quarter presented, funded and unfunded loan fair value adjustments represent the unpaid principal balance of funded and unfunded loans, respectively, during the quarter multiplied by the IRLC or student loan commitment price in effect at the beginning of the quarter. For the year-to-date periods presented, amounts represent the summation of the per-quarter effects.

The following table presents the changes in our purchase price earn-out, which is measured at fair value on a recurring basis. Changes in the fair value are recorded within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). Changes during the three and six months ended June 30, 2021 were immaterial.


	Purchase Price Earn-Out
Three Months Ended June 30, 2022
Fair value as of March 31, 2022	$	2,285
Payments	(1,872)
Changes in valuation inputs or assumptions(1)	212
Fair value as of June 30, 2022	$	625








Six Months Ended June 30, 2022
Fair value as of January 1, 2022	$	4,272
Payments	(4,689)
Changes in valuation inputs or assumptions(1)	1,042
Fair value as of June 30, 2022	$	625

___________________

(1)The estimated amount of losses included in earnings attributable to changes in instrument-specific credit risk were immaterial during the three and six months ended June 30, 2022. The losses attributable to instrument-specific credit risk were estimated by incorporating our current default and loss severity assumptions for the purchase price earn-out. These assumptions are based on historical performance and performance expectations over the term of the underlying instrument.

Schedule of Aging Analysis for Credit Card Loans

The following table presents the amortized cost basis of our credit card and commercial and consumer banking portfolios (excluding accrued interest and before the allowance for credit losses) by either current status or delinquency status as of the dates indicated:


			Delinquent Loans
	Current		30–59 Days		60–89 Days		≥ 90 Days(1)		Total Delinquent Loans		Total Loans(2)
June 30, 2022
Credit card	$	177,732	$	3,570	$	3,105	$	8,417	$	15,092	$	192,824
Commercial and consumer banking:
Commercial real estate	68,479		—		—		—		—		68,479
Commercial and industrial	8,299		7		—		—		7		8,306
Residential real estate and other consumer(3)	3,417		—		—		—		—		3,417
Total commercial and consumer banking	80,195		7		—		—		7		80,202
Total loans	$	257,927	$	3,577	$	3,105	$	8,417	$	15,099	$	273,026

December 31, 2021
Credit card	$	115,356	$	1,893	$	1,683	$	2,658	$	6,234	$	121,590

_______________

(1)All of the credit card loans ≥ 90 days past due continued to accrue interest. As of June 30, 2022 and December 31, 2021, there were no credit card loans on nonaccrual status. As of June 30, 2022, commercial and consumer banking loans on nonaccrual status were immaterial, and there were no loans that were 90 days or more past due.

(2)For credit card, the balance is presented before allowance for credit losses of $21,974 and $7,037 as of June 30, 2022 and December 31, 2021, respectively, and accrued interest of $3,017 and $1,359, respectively. For commercial and consumer banking, the balance is presented before allowance for credit losses of $1,204 and accrued interest of $247 as of June 30, 2022.

(3)Includes residential real estate loans acquired in the Bank Merger, 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) as of the dates indicated based on FICO scores, which are obtained at the origination of the account, and are updated as new credit information is available. The pools estimate the likelihood of borrowers with similar FICO scores to pay credit obligations based on aggregate credit performance data.


FICO	June 30, 2022		December 31, 2021
≥ 800	$	9,560	$	10,016
780 – 799	8,388		8,624
760 – 779	9,882		9,976
740 – 759	12,289		13,581
720 – 739	16,471		18,358
700 – 719	22,579		22,579
680 – 699	26,430		21,736
660 – 679	26,513		14,044
640 – 659	19,889		1,969
< 640	40,823		707
Total credit card	$	192,824	$	121,590

The following table presents the amortized cost basis of our commercial and consumer banking portfolio (excluding accrued interest and before the allowance for credit losses) by origination year and credit quality indicator as of June 30, 2022:


	Term Loans by Origination Year
	2022		2021		2020		2019		2018		Prior		Total Term Loans		Revolving Loans
Commercial real estate
Pass	$	8,987	$	5,811	$	7,680	$	9,413	$	5,692	$	16,364	$	53,947	$	206
Watch	1,246		1,703		—		2,064		2,146		2,959		10,118		—
Special mention	—		—		—		687		2,263		413		3,363		—
Substandard	—		—		—		—		—		845		845		—
Total commercial real estate	$	10,233	$	7,514	$	7,680	$	12,164	$	10,101	$	20,581	$	68,273	$	206
Commercial and industrial
Pass	$	—	$	15	$	113	$	—	$	103	$	5,093	$	5,324	$	367
Watch	—		—		—		136		—		355		491		26
Special mention	—		—		—		—		—		757		757		—
Substandard	—		—		—		234		165		942		1,341		—
Total commercial and industrial	$	—	$	15	$	113	$	370	$	268	$	7,147	$	7,913	$	393
Residential real estate and other consumer
Pass	$	—	$	—	$	—	$	—	$	—	$	3,307	$	3,307	$	69
Watch	—		—		—		—		—		41		41		—


Total residential real estate and other consumer	$	—	$	—	$	—	$	—	$	—	$	3,348	$	3,348	$	69
Total commercial and consumer banking	$	10,233	$	7,529	$	7,793	$	12,534	$	10,369	$	31,076	$	79,534	$	668

Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Consolidated and Nonconsolidated VIEs

The following table presents the assets and liabilities of consolidated VIEs that were included in our unaudited condensed consolidated balance sheets. The assets in the below table may only be used to settle

obligations of consolidated VIEs and were in excess of those obligations as of the dates presented. Additionally, the assets and liabilities in the table below exclude intercompany balances, which eliminate upon consolidation.


	June 30,		December 31,
	2022		2021
Assets:
Restricted cash and restricted cash equivalents	$	32,449	$	53,161
Loans	598,998		808,904
Total assets	$	631,447	$	862,065
Liabilities:
Accounts payable, accruals and other liabilities	$	314	$	388
Debt(1)	508,012		660,419
Residual interests classified as debt	54,436		93,682
Total liabilities	$	562,762	$	754,489

___________________

(1)Debt is presented net of debt issuance costs and debt premiums (discounts).

The following table presents the aggregate outstanding value of asset-backed bonds and residual interests owned by the Company in nonconsolidated VIEs as of the dates indicated:


	June 30,		December 31,
	2022		2021
Personal loans	$	42,238	$	62,925
Student loans	246,479		311,763
Securitization investments	$	288,717	$	374,688

Schedule of Loan Securitization Transfers, Whole Loan Sales and Participating Interests

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Transfers of Financial Assets (Tables)

6 Months Ended

Jun. 30, 2022

Transfers and Servicing [Abstract]

The following table summarizes our student and personal loan securitization transfers qualifying for sale accounting treatment for the three and six months ended June 30, 2021. There were no loan securitization transfers qualifying for sale accounting treatment during the three and six months ended June 30, 2022.


	Three Months Ended June 30,		Six Months Ended June 30,
	2021		2021
Student loans
Fair value of consideration received:
Cash	$	196,223	$	696,264
Securitization investments	10,403		36,784

Servicing assets recognized	2,370		31,101
Total consideration	208,996		764,149
Aggregate unpaid principal balance and accrued interest of loans sold	200,379		726,505
Gain from loan sales	$	8,617	$	37,644









Personal loans
Fair value of consideration received:
Cash	$	198,491	$	198,491
Securitization investments	10,481		10,481

Servicing assets recognized	1,238		1,238
Total consideration	210,210		210,210
Aggregate unpaid principal balance and accrued interest of loans sold	200,806		200,806
Gain from loan sales	$	9,404	$	9,404

The following table summarizes our whole loan sales during the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Student loans
Fair value of consideration received:
Cash	$	257,859	$	425,369	$	806,770	$	847,710
Servicing assets recognized	2,991		3,740		8,815		8,598
Repurchase liabilities recognized	(41)		(79)		(121)		(158)
Total consideration	260,809		429,030		815,464		856,150
Aggregate unpaid principal balance and accrued interest of loans sold	261,324		412,222		807,611		825,312
Gain (loss) from loan sales	$	(515)	$	16,808	$	7,853	$	30,838

Home loans
Fair value of consideration received:
Cash	$	322,219	$	856,317	$	681,919	$	1,552,514
Servicing assets recognized	4,482		9,367		8,720		15,906
Repurchase liabilities recognized	(315)		(1,035)		(735)		(1,974)
Total consideration	326,386		864,649		689,904		1,566,446
Aggregate unpaid principal balance and accrued interest of loans sold	342,952		841,734		708,512		1,519,303
Gain (loss) from loan sales	$	(16,566)	$	22,915	$	(18,608)	$	47,143

Personal loans
Fair value of consideration received:
Cash	$	1,163,029	$	801,437	$	2,181,718	$	1,612,689
Servicing assets recognized	7,659		5,078		14,083		11,081
Repurchase liabilities recognized	(2,789)		(1,980)		(5,087)		(4,064)
Total consideration received	1,167,899		804,535		2,190,714		1,619,706
Aggregate unpaid principal balance and accrued interest of loans sold	1,129,237		773,194		2,111,092		1,555,723
Gain from loan sales	$	38,662	$	31,341	$	79,622	$	63,983

Schedule of Transferred Loans with Continued Involvement but Not Recorded on Consolidated Balance Sheet and Cash Flows Received

The following table presents information as of the dates indicated about the unpaid principal balances of transferred loans that are not recorded in our unaudited condensed consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements:


	Student Loans		Home Loans		Personal Loans		Total
June 30, 2022
Loans in repayment	$	8,911,840	$	4,971,034	$	5,291,541	$	19,174,415
Loans in-school/grace/deferment	39,721		—		—		39,721
Loans in forbearance	46,176		14,092		542		60,810
Loans in delinquency	102,946		8,565		100,602		212,113
Total loans serviced	$	9,100,683	$	4,993,691	$	5,392,685	$	19,487,059

December 31, 2021
Loans in repayment	$	9,852,957	$	4,575,001	$	5,138,299	$	19,566,257
Loans in-school/grace/deferment	37,949		—		—		37,949
Loans in forbearance	44,833		40,353		1,120		86,306
Loans in delinquency	112,885		7,465		75,275		195,625
Total loans serviced	$	10,048,624	$	4,622,819	$	5,214,694	$	19,886,137

The following table presents additional information during the periods indicated about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Student loans
Servicing fees collected	$	11,045	$	14,269	$	20,213	$	23,294
Charge-offs, net of recoveries(1)	9,192		4,651		17,412		7,704

Home Loans
Servicing fees collected	$	2,930	$	1,918	$	5,566	$	3,531


Personal Loans
Servicing fees collected	$	8,951	$	7,785	$	17,588	$	17,275
Charge-offs, net of recoveries(1)	23,908		28,359		41,046		66,176

Total
Servicing fees collected	$	22,926	$	23,972	$	43,367	$	44,100
Charge-offs, net of recoveries	33,100		33,010		58,458		73,880

_____________________

(1)Student loan and personal loan charge-offs, net of recoveries, are impacted by the timing of charge-off sales performed on behalf of the purchasers of our loans, which lower the net amount disclosed.

Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022