Company: AFRM
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001820953-25-000052
Chunk: 16

Company: Affirm Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 was unknown at the time of sale.  Additionally, we recognize a risk sharing asset or liability in certain arrangements where payments are made or received based on the actual versus expected loan performance, as contractually agreed upon with the third party. Refer to Note 12. Fair Value of Financial Assets and Liabilities for further discussion of risk sharing arrangements.Servicing IncomeServicing income 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):March 31, 2025June 30, 2024Unpaid principal balance$6,656,169 $5,697,965 Accrued interest receivable68,997 62,796 Premiums on loans held for investment9,897 7,822 Less: Discount due to loss on loan purchase commitment(77,000)(63,682)Less: Discount due to loss on directly originated loans(27,612)(34,829)Less: Fair value adjustment on loans acquired through business combination(5)(16)Total loans held for investment$6,630,446 $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 $7.1 billion and $21.6 billion during the three and nine months ended March 31, 2025, respectively, and $5.1 billion and $15.6 billion during the three and nine months ended March 31, 2024, respectively. We directly originated $1.5 billion and $4.5 billion of loans during the three and nine months ended March 31, 2025, respectively, and $1.1 billion and $3.3 billion of loans during the three and nine months ended March 31, 2024, respectively.Our portfolio consists of interest