Company: AFRM
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001820953-25-000052
Chunk: 20

Company: Affirm Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 unpaid principal balance, if any, are credited to the allowance for credit losses.The following table details activity in the allowance for credit losses, including charge-offs, recoveries and provision for loan losses (in thousands):Three Months Ended March 31,Nine Months Ended March 31,2025202420252024Balance at beginning of period$363,831 $262,204 $309,097 $204,531 Provision for loan losses142,001 117,271 445,313 325,914 Charge-offs(144,792)(99,181)(409,152)(261,657)Recoveries of charged-off receivables15,475 9,245 32,695 20,406 Other(1)(1,528)(451)(2,966)(106)Balance at end of period$374,987 $289,088 $374,987 $289,088 (1)Primarily represents foreign currency translation adjustments and the initial allowance for purchased credit-deteriorated (PCD) loans.Loan Modifications for Borrowers Experiencing Financial DifficultyWe have a loan modification program for borrowers experiencing financial difficulty if certain eligibility criteria are met. A loan is evaluated for modification program eligibility when a borrower self-reports financial hardship, either when a borrower contacts us directly or upon making contact with the borrower to determine eligibility when a loan payment is past due. The objectives of the loan modification program are to offer borrowers assistance during times of financial stress, increase collections, and minimize losses.

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We have two primary loan modification strategies: payment deferrals and loan re-amortization. A payment deferral provides the borrower relief by extending the due date for the next payment due. While a borrower may obtain more than one deferral, the total deferral period may not exceed three months. A loan re-amortization provides the borrower relief by lowering monthly payments through extending the term length of the loan; however, the total remaining term may not exceed twenty-four months. In addition, the total interest due from the consumer will not exceed the initial total interest due prior to modification, and a loan may not be re-amortized more than once.  The following tables present the amortized cost basis of loans excluding accrued interest receivable that were modified for borrowers experiencing financial difficulty during the three and nine months ended March 31, 2025 and 2024, by type of modification (in thousands):Three Months Ended March 31,Nine Months Ended March