Company: AFRM
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001820953-25-000012
Chunk: 22

Company: Affirm Holdings, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 includes contractual fees specified in our servicing agreements with third-party loan owners and unconsolidated securitizations that are earned from providing professional services to manage loan portfolios on their behalf. The servicing fee is calculated on a daily basis by multiplying a set fee percentage (as outlined in the executed agreements with third-party loan owners) by the outstanding loan principal balance. Servicing income also includes fair value adjustments for servicing assets and servicing liabilities.

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4.   Loans Held for Investment and Allowance for Credit Losses

    Loans held for investment consisted of the following (in thousands):December 31, 2024June 30, 2024Unpaid principal balance$6,814,032 $5,697,965 Accrued interest receivable76,096 62,796 Premiums on loans held for investment9,472 7,822 Less: Discount due to loss on loan purchase commitment(74,099)(63,682)Less: Discount due to loss on directly originated loans(29,326)(34,829)Less: Fair value adjustment on loans acquired through business combination(8)(16)Total loans held for investment$6,796,167 $5,670,056 Loans held for investment includes loans originated through our originating bank partners and directly originated loans. The majority of the loans that are underwritten using our technology platform and originated by our originating bank partners are later purchased by us. We purchased loans from our originating bank partners in the amount of $8.1 billion and $14.5 billion during the three and six months ended December 31, 2024, respectively, and $5.9 billion and $10.5 billion during the three and six months ended December 31, 2023, respectively. We directly originated $1.7 billion and $3.0 billion of loans during the three and six months ended December 31, 2024, respectively, and $1.3 billion and $2.2 billion of loans during the three and six months ended December 31, 2023, respectively.Our portfolio consists of interest bearing and non-interest bearing consumer loans with original term lengths of up to sixty months originated in markets including the U.S., U.K, and Canada, with the majority of loans originated within the U.S. Given that our loan portfolio focuses on one product segment, unsecured consumer installment loans, we generally evaluate the entire portfolio as a single homogeneous loan portfolio to predict future losses,