SoFi Technologies, Inc. 10-Q

Item 5. Other Information None. 156 SoFi Technologies, Inc. TABLE OF CONTENTS Item 6. Exhibits Exhibit No. Description 10.1 + Amended and Restated 2021 Stock Option and Incentive Plan and forms of agreement thereunder 10.2 + First Amendment to Stadium Complex Cornerstone Naming Rights and Sponsorship Agreement 31.1 + Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2 + Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1 +* Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2 +* Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document 101.SCH+ Inline XBRL Taxonomy Extension Schema Document 101.CAL+ Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.LAB+ Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE+ Inline XBRL Taxonomy Extension Presentation Linkbase Document 101.DEF+ Inline XBRL Taxonomy Extension Definition Linkbase Document 104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) ___________________ + Filed herewith. * Indicates a document being furnished with this Form 10-Q. Information furnished herewith shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. Such exhibit shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. 157 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SoFi Technologies, Inc. (Registrant) Date: November 9, 2022 By: /s/ Christopher Lapointe Christopher Lapointe Chief Financial Officer 158 SoFi Technologies, Inc. TABLE OF CONTENTS SOFI TECHNOLOGIES, INC. SUPPLEMENTAL INFORMATION Page Average Balances and Net Interest Earnings Analysis F-2 Analysis of Changes in Net Interest Income F-4 Loan Maturity Schedule F-5 Analysis of Allowance for Credit Losses F-5 Analysis of Charge-offs F-6 Deposits F-6 F-1 SoFi Technologies, Inc. TABLE OF CONTENTS SoFi Technologies, Inc. Unaudited Supplemental Financial Data As a bank holding company, we are providing the following supplemental information pursuant to Subpart 1400 of Regulation S-K. Certain other information required by Subpart 1400 of Regulation S-K is presented throughout this Quarterly Report on Form 10-Q. Average Balances and Net Interest Earnings Analysis Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 ($ in thousands) Average Balances (1) Interest Income/Expense Average Rate Average Balances (1) Interest Income/Expense Average Rate Assets Interest-earning assets: Interest-bearing deposits with banks $ 1,067,810 $ 2,529 0.95 % $ 624,981 $ 152 0.10 % Investments in available-for-sale securities 228,502 464 0.81 98,571 94 0.38 Loans (2) 9,150,847 191,525 8.37 5,191,701 89,844 6.92 Securitization investments 275,863 2,633 3.82 386,236 2,999 3.11 Total interest-earning assets 10,723,022 197,151 7.35 % 6,301,489 93,089 5.91 % Total noninterest-earning assets 3,019,934 1,943,521 Total assets $ 13,742,956 $ 8,245,010 Liabilities, Temporary Equity and Permanent Equity Interest-bearing liabilities: Demand deposits $ 1,982,603 $ 7,769 1.57 % $ — $ — — % Savings deposits 1,453,458 6,114 1.68 — — — Time deposits 354,211 266 0.30 — — — Total interest-bearing deposits 3,790,272 14,149 1.49 — — — Debt (2) 3,658,266 25,019 2.74 2,937,680 18,690 2.54 Residual interests classified as debt 48,894 904 7.40 107,195 2,036 7.60 Total interest-bearing liabilities 7,497,432 40,072 2.14 % 3,044,875 20,726 2.72 % Total noninterest-bearing liabilities 735,086 681,152 Total liabilities $ 8,232,518 $ 3,726,027 Total temporary equity 320,374 320,374 Total permanent equity 5,190,064 4,198,609 Total liabilities, temporary equity and permanent equity $ 13,742,956 $ 8,245,010 Net interest income (3) $ 157,079 $ 72,363 Net interest margin (4) 5.86 % 4.59 % ___________________ (1) Average balances were calculated on four-month ending balances and include accrued interest. (2) Interest income on loans measured at amortized cost includes amortization of deferred loan fees, net of deferred loan costs, of $2.2 million and $0.5 million for the three months ended September 30, 2022 and 2021, respectively. Interest expense on debt includes debt issuance and discount expense of $4.0 million and $2.8 million during the three months ended September 30, 2022 and 2021, respectively. (3) Net interest income is calculated as the excess of total interest income on interest-earning assets over total interest expense on interest-bearing liabilities. (4) Net interest margin is calculated as net interest income divided by total average interest-earning assets. F-2 SoFi Technologies, Inc. TABLE OF CONTENTS Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 ($ in thousands) Average Balances (1) Interest Income/Expense Average Rate Average Balances (1) Interest Income/Expense Average Rate Assets Interest-earning assets: Interest-bearing deposits with banks $ 1,168,934 $ 3,930 0.45 % $ 737,315 $ 561 0.10 % Investments in available-for-sale securities 208,973 1,149 0.73 39,428 94 0.32 Loans (2) 8,007,445 451,247 7.51 4,998,549 246,743 6.58 Securitization investments 312,054 7,958 3.40 432,165 11,260 3.47 Related party receivables — — — 3,598 211 7.82 Total interest-earning assets 9,697,406 464,284 6.38 % 6,211,055 258,869 5.56 % Total noninterest-earning assets 2,614,678 1,931,196 Total assets $ 12,312,084 $ 8,142,251 Liabilities, Temporary Equity and Permanent Equity Interest-bearing liabilities: Demand deposits $ 1,146,498 $ 10,696 1.24 % $ — $ — — % Savings deposits 761,377 8,130 1.42 — — — Time deposits 148,299 297 0.27 — — — Total interest-bearing deposits 2,056,174 19,123 1.24 — — — Debt (2) 4,274,446 67,058 2.09 3,774,780 76,789 2.71 Residual interests classified as debt 64,681 3,469 7.15 110,283 6,381 7.71 Total interest-bearing liabilities 6,395,301 89,650 1.87 % 3,885,063 83,170 2.85 % Total noninterest-bearing liabilities 639,926 606,397 Total liabilities $ 7,035,227 $ 4,491,460 Total temporary equity 320,374 2,032,213 Total permanent equity 4,956,483 1,618,578 Total liabilities, temporary equity and permanent equity $ 12,312,084 $ 8,142,251 Net interest income (3) $ 374,634 $ 175,699 Net interest margin (4) 5.15 % 3.77 % __________________ (1) Average balances were calculated on ten-month ending balances and include accrued interest. (2) Interest income on loans measured at amortized cost includes amortization of deferred loan fees, net of deferred loan costs, of $5.8 million and $0.6 million for the nine months ended September 30, 2022 and 2021, respectively. Interest expense on debt includes debt issuance and discount expense of $12.1 million and $14.2 million during the nine months ended September 30, 2022 and 2021, respectively. (3) Net interest income is calculated as the excess of total interest income on interest-earning assets over total interest expense on interest-bearing liabilities. (4) Net interest margin is calculated as net interest income divided by total average interest-earning assets. F-3 SoFi Technologies, Inc. TABLE OF CONTENTS Analysis of Changes in Net Interest Income The following table presents period-over-period changes in net interest income and the extent to which the variance is attributable to changes in the volume of our interest-earning assets and interest-bearing liabilities or changes in the interest rates related to these assets and liabilities: Three Months Ended September 30, Nine Months Ended September 30, 2022 vs. 2021 2022 vs. 2021 Increase (Decrease) Due to Change in (1) : Increase (Decrease) Due to Change in (1) : ($ in thousands) Volume Rate Total Variance Volume Rate Total Variance Interest income: Interest-bearing deposits with banks $ 1,049 $ 1,328 $ 2,377 $ 1,451 $ 1,918 $ 3,369 Investments in available-for-sale securities 264 106 370 932 123 1,055 Loans 82,864 18,817 101,681 169,562 34,942 204,504 Securitization investments (1,054) 688 (366) (3,063) (239) (3,302) Related party receivables — — — — (211) (211) Total interest income $ 83,123 $ 20,939 $ 104,062 $ 168,882 $ 36,533 $ 205,415 Interest expense: Interest-bearing deposits $ 14,149 $ — $ 14,149 $ 19,123 $ — $ 19,123 Debt 4,928 1,401 6,329 7,839 (17,570) (9,731) Residual interests classified as debt (1,078) (54) (1,132) (2,446) (466) (2,912) Total interest expense $ 17,999 $ 1,347 $ 19,346 $ 24,516 $ (18,036) $ 6,480 Net interest income $ 65,124 $ 19,592 $ 84,716 $ 144,366 $ 54,569 $ 198,935 ___________________ (1) We calculate the change in interest income and interest expense separately for each item. Volume and rate changes have been allocated on a consistent basis using the respective percentage changes in average balances and average rates. F-4 SoFi Technologies, Inc. TABLE OF CONTENTS Loan Maturity Schedule The following table presents the maturities of our loan portfolio, as well as the separate presentation of the total amount of loans in each loan category that are due after one year that have variable rates and fixed rates: As of September 30, 2022 (1) ($ in thousands) Within 1 year After 1 year through 5 years After 5 years through 15 years After 15 years Total Loan Portfolio: Student loans $ 7,031 $ 615,371 $ 2,556,055 $ 710,185 $ 3,888,642 Home loans — — 4,552 102,317 106,869 Personal loans 101,465 5,653,669 912,350 — 6,667,484 Credit card (2) 217,750 — — — 217,750 Commercial and consumer banking 2,684 7,971 15,672 66,450 92,777 Total loans $ 328,930 $ 6,277,011 $ 3,488,629 $ 878,952 $ 10,973,522 Loans with variable rates: Student loans $ 52,563 $ 97,020 $ 5,412 $ 154,995 Personal loans 12,189 — — 12,189 Commercial and consumer banking 4,860 10,208 61,376 76,444 Total loans $ 69,612 $ 107,228 $ 66,788 $ 243,628 Loans with fixed rates: Student loans $ 562,808 $ 2,459,035 $ 704,773 $ 3,726,616 Home loans — 4,552 102,317 106,869 Personal loans 5,641,480 912,350 — 6,553,830 Commercial and consumer banking 3,111 5,464 5,074 13,649 Total loans $ 6,207,399 $ 3,381,401 $ 812,164 $ 10,400,964 __________________ (1) Maturities presented are based upon the contractual terms of the loans. Amounts represent unpaid principal balance of loans outstanding at period end. (2) Due to the revolving nature of credit card loans, we report all of our credit card loans as due within one year. Analysis of Allowance for Credit Losses Allowance for Credit Losses Ratios The following table presents the ratio of allowance for credit losses to total loans outstanding that are measured at amortized cost: ($ in thousands) September 30, 2022 September 30, 2021 Allowance for credit losses to total loans outstanding Allowance for credit losses $ 34,370 $ 3,000 Total loans outstanding (1) $ 310,527 $ 74,350 Ratio (2) 11.07 % 4.03 % __________________ (1) Total loans outstanding excludes accrued interest. (2) The increase in the ratio was attributable to credit card and was reflective of both an increase in the average balance and an increase in our estimate of expected future credit losses. We omitted the credit ratios associated with nonaccrual loans, as the balance of nonaccrual loans was immaterial. F-5 SoFi Technologies, Inc. TABLE OF CONTENTS Allocation of Allowance for Credit Losses The following table presents the allocation of the allowance for credit losses and the percentage of loans outstanding by category to total loans outstanding that are measured at amortized cost: September 30, 2022 September 30, 2021 ($ in thousands) Allowance for credit losses Percent of loans to total loans (1) Allowance for credit losses Percent of loans to total loans (1) Credit card $ 32,960 70 % $ 3,000 100 % Commercial and consumer banking 1,410 30 % — — % Total $ 34,370 100 % $ 3,000 100 % __________________ (1) Loans outstanding balances used in the calculation exclude accrued interest. Analysis of Charge-offs The following tables present information regarding average loans outstanding, net charge-offs and the annualized ratio of net charge-offs to average loans outstanding: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 ($ in thousands) Average Loans (1) Net Charge-offs Ratio Average Loans (1) Net Charge-offs Ratio Student loans $ 3,837,742 $ 3,169 0.33 % $ 2,876,274 $ 2,544 0.35 % Home loans 131,067 — — 203,951 — — Personal loans 4,914,715 23,961 1.95 2,051,835 3,092 0.60 Credit card 182,490 5,133 11.25 57,131 1,073 7.51 Commercial and consumer banking 84,833 (5) n/m 2,510 — — Total loans $ 9,150,847 $ 32,258 1.41 % $ 5,191,701 $ 6,709 0.52 % Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 ($ in thousands) Average Loans (1) Net Charge-offs Ratio Average Loans (1) Net Charge-offs Ratio Student loans $ 3,844,797 $ 8,470 0.29 % $ 2,900,635 $ 6,530 0.30 % Home loans 149,461 — — 197,495 — — Personal loans 3,790,432 42,412 1.49 1,866,372 15,507 1.11 Credit card 156,295 12,438 10.61 31,392 1,073 4.56 Commercial and consumer banking 66,460 (4) n/m 2,655 — — Total loans $ 8,007,445 $ 63,316 1.05 % $ 4,998,549 $ 23,110 0.62 % ___________________ (1) Average balances were calculated on four-month or ten-month ending balances and include accrued interest. Deposits Uninsured Deposits As of September 30, 2022, the amount of uninsured deposits totaled $566.6 million. We did not have any deposits as of September 30, 2021. The following table presents uninsured time deposits by remaining time to maturity: ($ in thousands) September 30, 2022 Uninsured Time Deposits 3 months or less $ 7,250 Over 3 months through 6 months 603 Over 6 months through 12 months 2,161 Over 12 months 1,681 Total $ 11,695 F-6