Interest Income and Interest Expense - (Tables)

3 Months Ended

Aug. 31, 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 months ended August 31, 2022 and 2021.

Table 2.1: Interest Income and Interest Expense

	Three Months Ended August 31,
(Dollars in thousands)	2022		2021
Interest income:
Loans(1)	$	302,680	$	278,819
Investment securities	4,298		4,449
Total interest income	306,978		283,268
Interest expense:(2)(3)
Short-term borrowings	24,209		3,393
Long-term debt	158,881		144,873
Subordinated debt	26,378		26,511
Total interest expense	209,468		174,777
Net interest income	$	97,510	$	108,491

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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, late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs.

(2) 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.

(3) 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.