Interest Income and Interest Expense - (Tables)

9 Months Ended

Feb. 28, 2022

Banking and Thrift, Interest [Abstract]

Schedule of Interest Income and Interest Expense

The following table displays the components of interest income, by interest-earning asset type, and interest expense, by debt product type, presented on our consolidated statements of operations for the three and nine months ended February 28, 2022 and 2021.

Table 2.1: Interest Income and Interest Expense

	Three Months Ended February 28,				Nine Months Ended February 28,
(Dollars in thousands)	2022		2021		2022		2021
Interest income:
Loans(1)(2)	$	281,361	$	274,265	$	839,548	$	822,605
Investment securities	3,845		3,907		12,078		11,650
Total interest income	285,206		278,172		851,626		834,255
Interest expense:(3)(4)
Short-term borrowings	3,802		3,473		10,271		11,217
Long-term debt	143,639		143,210		432,608		436,702
Subordinated debt	26,213		26,357		79,148		79,519
Total interest expense	173,654		173,040		522,027		527,438
Net interest income	$	111,552	$	105,132	$	329,599	$	306,817

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(1)Includes loan conversion fees, which are generally deferred and recognized in interest income over the period to maturity using the effective interest method.

(2)Includes late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs.

(3) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense over the period to maturity using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized in interest expense immediately as incurred.

(4) Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Based on the nature of the fees, the amount is either recognized immediately as incurred or deferred and recognized in interest expense ratably over the term of the arrangement.