Regulatory Capital

12 Months Ended

Dec. 31, 2024

Regulatory Capital Requirements Under Banking Regulations [Abstract]

Regulatory Capital

Note 21. Regulatory Capital

SoFi Technologies, a bank holding company, and SoFi Bank, a nationally chartered association, are required to comply with regulatory capital rules issued by the Federal Reserve and other U.S. banking regulators, including the OCC and FDIC. From time to time, we may contribute capital to SoFi Bank. We are required to manage our capital position to maintain sufficient capital to satisfy these regulatory rules and support our business activities, including the requirement to maintain minimum regulatory capital ratios in accordance with the Basel Committee on Banking Supervision standardized approach for U.S. banking organizations (U.S. Basel III). If the Federal Reserve finds that we are not “well-capitalized” or “well-managed”, we would be required to take remedial action, which may contain additional limitations or conditions relating to our activities.

The Federal Reserve and the OCC have authority to prohibit bank holding companies and banks, respectively, from paying dividends if, in their opinion, the payment of dividends would constitute an unsafe or unsound practice. Under the National Bank Act, SoFi Bank generally may, without prior approval of the OCC, declare a dividend so long as the total amount of all dividends (common and preferred), including the proposed dividend, in the current year do not exceed net income for the current year to date plus retained net income for the prior two years. However, taking into account a wide range of factors, the OCC may object and therefore prevent SoFi Bank from paying dividends to the Company. As such, as of December 31, 2024, the Bank would not have any funds free of restrictions that are available for dividend payments. Restrictions on the ability of SoFi Bank to pay dividends to the parent company could also impact the Company’s ability to pay dividends to common stockholders.

Additionally, under the Federal Reserve’s capital rules, our bank holding company’s ability to pay dividends is restricted if we do not maintain capital above the capital conservation buffer, as discussed below. Further, a policy statement of the Federal Reserve provides that, among other things, a bank holding company generally should not pay dividends on regulatory capital instruments if its net income for the past year is not sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality, and overall financial condition. Based on this Federal Reserve policy, as of December 31, 2024, the Company generally would not have any funds free of restrictions available for dividend payments on regulatory capital instruments.

These requirements establish required minimum ratios for CET1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and a Tier 1 leverage ratio; set risk-weighting for assets and certain other items for purposes of the risk-based capital ratios; and define what qualifies as capital for purposes of meeting the capital requirements. Additionally, regulatory capital rules include a capital conservation buffer of 2.5% that is added on top of each of the minimum risk-based capital ratios in order to avoid restrictions on capital distributions and discretionary bonuses. In addition, the Federal Reserve and the OCC have authority to require banking organizations subject to their supervision to hold additional amounts of capital in excess of the minimum risk-based capital ratios.

The risk- and leverage-based capital ratios and amounts are presented below:

	December 31, 2024				December 31, 2023
($ in thousands)	Amount		Ratio		Amount		Ratio		Required Minimum(1)		Well-Capitalized Minimum(2)
SoFi Bank
CET1 risk-based capital	$	4,352,537	17.3	%	$	3,331,616	17.3	%	7.0	%	6.5	%
Tier 1 risk-based capital	4,352,537		17.3	%	3,331,616		17.3	%	8.5	%	8.0	%
Total risk-based capital	4,398,944		17.5	%	3,386,105		17.6	%	10.5	%	10.0	%
Tier 1 leverage	4,352,537		14.4	%	3,331,616		15.0	%	4.0	%	5.0	%
Risk-weighted assets	25,207,621				19,244,841
Quarterly adjusted average assets	30,159,786				22,273,285
SoFi Technologies
CET1 risk-based capital	$	4,457,212	16.0	%	$	3,439,969	15.0	%	7.0	%	n/a
Tier 1 risk-based capital	4,457,212		16.0	%	3,439,969		15.0	%	8.5	%	n/a
Total risk-based capital	4,503,618		16.2	%	3,494,458		15.3	%	10.5	%	n/a
Tier 1 leverage	4,457,212		13.4	%	3,439,969		12.8	%	4.0	%	n/a
Risk-weighted assets	27,859,577				22,883,185
Quarterly adjusted average assets	33,234,724				26,782,318

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(1)Required minimums presented for risk-based capital ratios include the required capital conservation buffer.

(2)The well-capitalized minimum measure is applicable at the bank level only.

As of December 31, 2024 and December 31, 2023, our regulatory capital ratios exceeded the thresholds required to be regarded as a well-capitalized institution, and meet all capital adequacy requirements to which we are subject. There have been no events or conditions since December 31, 2024 that management believes would change the categorization.