Deposits

6 Months Ended

Jun. 30, 2023

Banking and Thrift, Interest [Abstract]

Deposits

9. Deposits

WEX Bank’s regulatory status enables it to raise capital to fund the Company’s working capital requirements by issuing deposits, subject to FDIC rules governing minimum financial ratios. See Note 19, Supplementary Regulatory Capital Disclosure, for further information concerning these FDIC requirements.

WEX Bank accepts its deposits through certain customers as required collateral for credit that has been extended (“customer deposits”) and contractual arrangements for brokered and non-brokered certificate of deposit and money market deposit products. Additionally, WEX Bank holds deposits for the benefit of WEX Inc.’s HSA customers subject to the terms of a deposit agreement.

Customer deposits are generally non-interest bearing, certificates of deposit are issued at fixed rates, money market deposits are issued at both fixed and variable interest rates based on the Federal Funds rate and HSA deposits are issued at rates as defined within the consumer account agreements.

The following table presents the composition of deposits, which are classified as short-term or long-term based on their contractual maturities:

(In millions)	June 30, 2023			December 31, 2022
Customer deposits	$	145.4		$	146.7
Contractual deposits with maturities within 1 year1,2	863.3			770.7
Interest-bearing money market deposits1	375.5			157.2
HSA deposits3	2,770.0			2,070.0
Short-term contractual deposits	$	4,154.2		$	3,144.6
Contractual deposits with maturities greater than 1 year and less than 5 years1,2	167.7			334.2
Total deposits	$	4,321.9		$	3,478.8
Weighted average cost of HSA deposits outstanding	0.11		%	0.04		%
Weighted average cost of funds on contractual deposits outstanding	3.25		%	1.48		%
Weighted average cost of interest-bearing money market deposits outstanding	5.24		%	4.45		%

1 As of June 30, 2023 and December 31, 2022, all certificates of deposit and money market deposits were in denominations of $250,000 or less, corresponding to FDIC deposit insurance limits.

2 Includes certificates of deposit and certain money market deposits, which have a fixed maturity and substantially fixed interest rates.

3 HSA deposits are recorded within short-term deposits on the condensed consolidated balance sheets as the funds can be withdrawn by the account holders at any time.