Interest Income and Interest Expense (Tables)

12 Months Ended

May 31, 2022

Banking and Thrift, Interest [Abstract]

Schedule of interest income and 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 fiscal years 2022, 2021 and 2020.

Table 2.1: Interest Income and Interest Expense

	Year Ended May 31,
(Dollars in thousands)	2022		2021		2020
Interest income:
Loans(1)	$	1,125,292	$	1,101,505	$	1,129,883
Investment securities	15,951		15,096		21,403
Total interest income	1,141,243		1,116,601		1,151,286
Interest expense:(2)(3)
Short-term borrowings	18,265		14,730		77,995
Long-term debt	581,748		581,292		634,567
Subordinated debt	105,521		106,041		108,527
Total interest expense	705,534		702,063		821,089
Net interest income	$	435,709	$	414,538	$	330,197

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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.