Interest Income and Interest Expense - (Tables)

9 Months Ended

Feb. 28, 2023

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, 2023 and 2022.

Table 2.1: Interest Income and Interest Expense

	Three Months Ended February 28,				Nine Months Ended February 28,
(Dollars in thousands)	2023		2022		2023		2022
Interest income:
Loans(1)	$	347,112	$	281,361	$	968,629	$	839,548
Investment securities	6,180		3,845		15,835		12,078
Total interest income	353,292		285,206		984,464		851,626
Interest expense:(2)(3)
Short-term borrowings	50,639		3,802		116,034		10,271
Long-term debt	204,876		143,639		541,678		432,608
Subordinated debt	26,194		26,213		78,909		79,148
Total interest expense	281,709		173,654		736,621		522,027
Net interest income	$	71,583	$	111,552	$	247,843	$	329,599

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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.