Borrowings

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Borrowings

Borrowings

Secured Financing

The following table presents information regarding the Company's Secured Financing facilities:

					June 30, 2024		December 31, 2023
Variable Interest Entity	Facility Amount		Maturity Date	Interest Rate	Balance		Balance
(in thousands)
Oportun CCW Trust (1)	$	80,000	December 1, 2024	Adjusted SOFR + 3.41%	$	57,978	$	68,409
Oportun PLW Trust	600,000		September 1, 2024	Adjusted SOFR + 2.17%	98,458		221,542
Total secured financing	$	680,000			$	156,436	$	289,951

(1) As of December 31, 2023, the facility amount of the Secured Financing - CCW facility (Oportun CCW Trust) was $100.0 million.

On January 31, 2024, the Company entered into an amendment to the Credit Card Warehouse facility to reduce the commitment amount from $100.0 million to $80.0 million and adjusted the minimum payment rate requirement, advance rate.

Asset-backed Notes at Fair Value

The following table presents information regarding asset-backed notes at fair value:

	June 30, 2024
Variable Interest Entity	Initial note amount issued (1)		Initial collateral balance (2)		Current balance (1)		Current collateral balance (2)		Weighted average interest rate(3)		Original revolving period (4)
(in thousands)
Asset-backed notes recorded at fair value:
Oportun Issuance Trust (Series 2022-3)	$	300,000	$	310,993	$	93,233	$	106,868	10.35	%	N/A
Oportun Issuance Trust (Series 2022-2)	400,000		410,212		78,006		90,145		9.87	%	N/A
Oportun Issuance Trust (Series 2022-A)	400,000		410,211		394,945		415,204		5.44	%	2 years
Oportun Issuance Trust (Series 2021-C)	500,000		512,762		466,863		519,349		2.48	%	3 years
Oportun Issuance Trust (Series 2021-B)	500,000		512,759		443,817		486,952		2.05	%	3 years
Oportun Funding XIV, LLC (Series 2021-A)	375,000		383,632		106,224		119,066		1.79	%	2 years
Total asset-backed notes recorded at fair value	$	2,475,000	$	2,540,569	$	1,583,088	$	1,737,584

	December 31, 2023
Variable Interest Entity	Initial note amount issued (1)		Initial collateral balance (2)		Current balance (1)		Current collateral balance (2)		Weighted average interest rate(3)		Original revolving period (4)
(in thousands)
Asset-backed notes recorded at fair value:
Oportun Issuance Trust (Series 2022-3)	$	300,000	$	310,993	$	145,732	$	165,079	9.34	%	N/A
Oportun Issuance Trust (Series 2022-2)	400,000		410,212		135,825		156,027		8.46	%	N/A
Oportun Issuance Trust (Series 2022-A)	400,000		410,211		390,755		415,448		5.44	%	2 years
Oportun Issuance Trust (Series 2021-C)	500,000		512,762		459,212		519,612		2.47	%	3 years
Oportun Issuance Trust (Series 2021-B)	500,000		512,759		466,317		519,115		2.05	%	3 years
Oportun Funding XIV, LLC (Series 2021-A)	375,000		383,632		182,164		200,758		1.78	%	2 years
Oportun Funding XIII, LLC (Series 2019-A)	279,412		294,118		—		—		—	%	3 years
Total asset-backed notes recorded at fair value	$	2,754,412	$	2,834,687	$	1,780,005	$	1,976,039

(1)Initial note amount issued includes notes retained by the Company as applicable. The current balances are measured at fair value for asset-backed notes recorded at fair value.

(2)Includes the unpaid principal balance of loans receivable, the balance of required reserve funds, cash, cash equivalents and restricted cash pledged by the Company.

(3)Weighted average interest rate excludes notes retained by the Company. There were no notes retained by the Company as of June 30, 2024. The weighted average interest rate for Series 2022-A, Series 2022-2 and Series 2022-3 will change over time as the notes pay sequentially (in class priority order).

(4)The revolving period for Series 2021-A ended on March 1, 2023, Series 2021-B ended on May 1, 2024, and Series 2022-A ended on June 1, 2024. These asset-backed notes have been amortizing since then. Series 2022-2 and Series 2022-3 are both amortizing deals with no revolving period.

Asset-backed Borrowings at Amortized Cost

The following table represents information regarding the Company's Asset-backed borrowings at amortized cost:

	June 30, 2024				December 31, 2023
	Balance				Balance
Asset-backed borrowings at amortized cost	Pledged Asset (1)		Associated Liability		Pledged Asset (1)		Associated Liability
(in thousands)
Oportun Issuance Trust 2024-1	$	150,656	$	149,728	$	—	$	—
Oportun CL Trust 2023-A	197,390		195,444		197,390		195,057
Other Asset Backed Borrowings	488,613		491,721		382,712		386,411
Total asset-backed borrowings recorded at amortized cost:	$	836,659	$	836,893	$	580,102	$	581,468

(1) The amount of pledged assets are recognized within the Loans Receivable at Fair Value on the Consolidated Balance Sheet.

On February 13, 2024, the Company announced the issuance of $199.5 million of Series 2024-1 fixed-rate asset-backed notes secured by a pool of its unsecured and secured personal installment loans (the "2024-1 Securitization"). The 2024-1 Securitization included four classes of fixed rate notes. The notes were offered and sold in a private placement in reliance on Rule 144A under the U.S. Securities Act of 1933, as amended, and were priced with a weighted average yield of 8.600% per annum and weighted average coupon of 8.434% per annum.

On October 20, 2023, the Company entered into a Receivables Loan and Security Agreement (the “Receivables Loan and Security Agreement”), pursuant to which the Company borrowed $197 million. Borrowings under the Receivables Loan and Security Agreement accrue interest at a weighted average interest rate equal to 10.05%.

Acquisition and Corporate Financing

The following table presents information regarding the Company's Acquisition and Corporate Financings:

					June 30, 2024		December 31, 2023
Entity	Original Balance		Maturity Date	Interest Rate	Balance		Balance
(in thousands)
Oportun Financial Corporation (1)	$	150,000	September 14, 2026	SOFR (minimum of 0.00%) + 12.00%	$	192,049	$	204,100
Oportun RF, LLC (2)	116,000		January 10, 2025	SOFR (minimum of 0.00%) + 11.00%	38,333		54,646
Total acquisition and corporate financings	$	266,000			$	230,382	$	258,746

(1) The Corporate Financing facility (Oportun Financial Corporation) was amended and upsized to $75.0 million on March 10, 2023.

(2) As of December 31, 2023, the maturity date of the Acquisition Financing facility (Oportun RF, LLC) was October 10, 2024.

Amendments to Corporate Financing

On March 12, 2024, the Company entered into Amendment No. 3 to the Corporate Financing (the “Third Amendment”). The Third Amendment included modifications to the minimum asset coverage ratio covenant levels, provided for an interest rate step-up of 3.00% per annum for certain months beginning in August 2024 in which the asset coverage ratio is less than 1.00 to 1.00, and required certain principal payments in amounts equal to $5.7 million per month to be made on the last business day of each of March, April and May 2024. In addition, the Third Amendment required principal payments equal to 100% of the net cash proceeds of any future issuance of indebtedness junior in priority to the obligations under the Corporate Financing.

Amendments to Acquisition Financing

On March 8, 2024, the Acquisition Financing facility (Oportun RF, LLC) was amended to provide for a three-month principal payment holiday for the months of March, April and May 2024, in amounts equal to $5.7 million per month. In addition, the amendment extended the term of the Acquisition Financing facility to January 10, 2025.

See Note 10, Stockholders' Equity for additional information on the Warrants.

As of June 30, 2024, and December 31, 2023, the Company was in compliance with all covenants and requirements of the Secured Financing, Acquisition and Corporate Financing facilities and asset-backed notes.