SoFi Technologies Inc

The following table presents the components of our total noninterest expense:

Total noninterest expense increased by $42.6 million, or 8%, for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by: (i) increased amortization of purchased and internally-developed software, and in tools and subscriptions costs, reflective of continued investments in technology, (ii) increases in direct member incentives, advertising and marketing expenditures, (iii) an increase in product fulfillment costs, which included debit card fulfillment services, primarily related to our SoFi Money product, as well as payment processing network association fees associated with increased activity on our technology platform, and (iv) amortization of premiums on a credit default swap related to our student loans during the 2024 period. This increase was partially offset by decreased employee compensation and benefits, which was attributable to decreases in share-based compensation expense, partially offset by increases in headcount and salary related to support of our growth and impacts of the inflationary environment, as well as restructuring charges during the first quarter of 2023.

Provision for Credit Losses

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:

(1)Loans outstanding balance excludes accrued interest.

(2)The decrease in the ratio was primarily attributable to senior secured loans, for which we did not recognize an allowance for credit losses, partially offset by credit cards, which was primarily reflective of an increase in total balances and associated loss reserves.

We omitted the credit ratios associated with nonaccrual loans, as the balance of nonaccrual loans was immaterial.

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:

(1)Loans outstanding balances exclude accrued interest.

(2)For the periods presented, we did not recognize an allowance for credit losses on senior secured loans, as we determined that our expected exposure to credit losses was immaterial.

Analysis of Charge-offs

The following table presents information regarding average loans outstanding, net charge-offs and the annualized ratio of net charge-offs to average loans outstanding:

(1)Average balances were calculated on daily carrying balances for the 2024 period and on four-month ending carrying balances for the 2023 period, as the daily analysis in the prior period would have involved undue burden. Both average calculations are representative of our operations.

(2)Net charge-offs include both credit- and certain non-credit-related charge-offs.

The provision for credit losses for the three months ended March 31, 2024 decreased by $1.2 million, or 15%, compared to the same period in 2023. The decrease during the three-month period was primarily related to improvement in credit card delinquency rates.