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Interest Income and Interest Expense
 12 Months Ended
May 31, 2026
Banking and Thrift, Interest [Abstract]  
INTEREST INCOME AND INTEREST EXPENSE
NOTE 2—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 in our consolidated statements of operations.

Table 2.1: Interest Income and Interest Expense
Year Ended May 31,
(Dollars in thousands)202620252024
Interest income:
Loans(1)
$1,790,735 $1,691,343 $1,566,449 
Cash, time deposits and investment securities
5,925 11,890 26,902 
Total interest income1,796,660 1,703,233 1,593,351 
Interest expense:(2)(3)
Short-term borrowings
189,657 189,429 250,316 
Long-term debt
1,173,995 1,113,480 952,659 
Subordinated debt131,242 139,370 136,113 
Total interest expense1,494,894 1,442,279 1,339,088 
Net interest income$301,766 $260,954 $254,263 
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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 premiums, 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.
Deferred income reported on our consolidated balance sheets of $30 million and $32 million as of May 31, 2026 and 2025, respectively, consists primarily of deferred loan conversion fees that totaled $18 million and $21 million as of each respective date.