SoFi Technologies Inc

The table below presents average balance and interest information for each major category of interest-earning assets and interest-bearing liabilities, along with net interest income and net interest margin.

Average Balances and Net Interest Earnings Analysis

(1)Average balances were calculated on daily carrying balances for the 2024 period and on four-month ending carrying balances for the 2023 period, as the daily analysis in the prior period would have involved undue burden. Both average calculations are representative of our operations.

(2)Interest expense on other debt primarily includes debt issuance and discount expense, as well as interest expense on the revolving credit facility.

(3)Net interest income is calculated as the excess of total interest income on interest-earning assets over total interest expense on interest-bearing liabilities.

(4)Net interest margin is calculated as net interest income divided by total average interest-earning assets.

For the three months ended March 31, 2024 compared to the three months ended March 31, 2023, net interest income increased by $166.7 million, or 71%, and net interest margin increased by 43 basis points. Average interest-earning assets increased by 59%, and average yields increased by 114 basis points. The increases were primarily driven by (i) higher interest income from personal loans, which was primarily a function of increases in the average balance and origination volume, as well as longer loan holding periods for both personal and student loans, (ii) interest-bearing deposits with banks, which reflected our strong liquidity position in a rising interest rate environment, and (iii) lower interest expense on warehouse facilities and securitizations primarily attributable to lower average balances, which is reflective of our continued funding mix towards deposit funding, and partially offset by higher interest rates incurred on our facilities which is reflective of the higher interest rate environment year over year. These items were partially offset by higher interest expense on deposits attributable to a higher average balance and higher interest rates offered to our members.

Analysis of Changes in Net Interest Income

The following table presents period-over-period changes in net interest income and the extent to which the variances are attributable to changes in the volume of our interest-earning assets and interest-bearing liabilities or changes in the interest rates related to these assets and liabilities:

(1)We calculate the changes in interest income and interest expense separately for each item. Volume and rate changes have been allocated on a consistent basis using the respective percentage changes in average balances and average rates.