SoFi Technologies Inc

For the period ended Jun 30, 2024. Filed Aug 6, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 6, 2024

SOFI$16.37-2.3%Stored close · as of Nov 10, 2026

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Contents

Net Interest Income

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

Three Months Ended June 30, 2024 · Three Months Ended June 30, 2023
($ in thousands) · Average Balances(1) · Interest Income/Expense · Average Yield/Rate · Average Balances(1) · Interest Income/Expense · Average Yield/Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$2,809,405		$34,995		5.01%		$2,158,973		$24,127	4.48%
Investment securities	1,485,455		20,665		5.60		387,453		3,682	3.81
Loans	24,189,904		618,935		10.29		17,810,656		442,187	9.96
Total interest-earning assets	28,484,764		674,595		9.53		20,357,082		469,996	9.26
Total noninterest-earning assets	3,091,473					2,862,005
Total assets	$31,576,237					$23,219,087
Liabilities, Temporary Equity and Permanent Equity
Interest-bearing liabilities:
Demand deposits	$2,227,602		$12,619		2.28%		$2,071,639		$12,922	2.50%
Savings deposits	17,515,485		191,033		4.39		7,292,617		73,114	4.02
Time deposits	2,248,868		28,163		5.04		1,708,576		20,493	4.81
Total interest-bearing deposits	21,991,955		231,815		4.24		11,072,832		106,529	3.86
Warehouse facilities	827,113		13,098		6.37		3,204,559		48,080	6.02
Securitization debt	219,327		1,828		3.35		908,381		10,770	4.76
Other debt(2)	1,824,742		15,270		3.37		1,642,953		13,491	3.29
Total debt	2,871,182		30,196		4.23		5,755,893		72,341	5.04
Residual interests classified as debt	3,169		—		—		13,015		—	—
Total interest-bearing liabilities	24,866,306		262,011		4.24		16,841,740		178,870	4.26
Total noninterest-bearing liabilities	707,439					786,175
Total liabilities	25,573,745					17,627,915
Total temporary equity	160,187					320,374
Total permanent equity	5,842,305					5,270,798
Total liabilities, temporary equity and permanent equity	$31,576,237					$23,219,087
Net interest income(3)		$412,584					$291,126
Net interest margin(4)				5.83%				5.74%

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

(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.

Six Months Ended June 30, 2024 · Six Months Ended June 30, 2023
($ in thousands) · Average Balances(1) · Interest Income/Expense · Average Yield/Rate · Average Balances(1) · Interest Income/Expense · Average Yield/Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$2,955,354		$72,263		4.92%		$1,784,179		$32,609	3.69%
Investment securities	1,123,775		30,867		5.52		475,190		9,421	4.00
Loans	23,870,538		1,237,376		10.42		16,432,315		799,529	9.81
Total interest-earning assets	27,949,667		1,340,506		9.64		18,691,684		841,559	9.08
Total noninterest-earning assets	3,046,070					2,992,932
Total assets	$30,995,737					$21,684,616
Liabilities, Temporary Equity and Permanent Equity
Interest-bearing liabilities:
Demand deposits	$2,160,572		$25,439		2.37%		$1,971,672		$25,774	2.64%
Savings deposits	16,130,130		352,056		4.39		6,388,356		121,274	3.83
Time deposits	2,611,862		65,771		5.06		1,425,530		32,597	4.61
Total interest-bearing deposits	20,902,564		443,266		4.26		9,785,558		179,645	3.70
Warehouse facilities	1,484,357		47,958		6.50		3,028,270		88,256	5.88
Securitization debt	276,576		5,486		3.99		879,521		21,196	4.86
Other debt(2)	1,789,076		28,494		3.20		1,644,173		25,185	3.09
Total debt	3,550,009		81,938		4.64		5,551,964		134,637	4.89
Residual interests classified as debt	4,080		—		—		14,529		141	1.96
Total interest-bearing liabilities	24,456,653		525,204		4.32		15,352,051		314,423	4.13
Total noninterest-bearing liabilities	712,981					745,701
Total liabilities	25,169,634					16,097,752
Total temporary equity	228,838					320,374
Total permanent equity	5,597,265					5,266,490
Total liabilities, temporary equity and permanent equity	$30,995,737					$21,684,616
Net interest income(3)		$815,302					$527,136
Net interest margin(4)				5.87%				5.69%

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

(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 June 30, 2024 compared to the three months ended June 30, 2023, net interest income increased by $121.5 million, or 42%, and net interest margin increased by 9 basis points. Average interest-earning assets increased by 40%, and average yields increased by 27 basis points. For the six months ended June 30, 2024 compared to the six months ended June 30, 2023, net interest income increased by $288.2 million, or 55%, and net interest margin increased by 18 basis points. Average interest-earning assets increased by 50%, and average yields increased by 56 basis points. The increases were primarily driven by (i) higher interest income from personal loans and student loans, which was primarily a function of increases in the average balance and origination volume, as well as longer loan holding periods, (ii) interest-bearing deposits with banks, which reflected our strong liquidity position in a rising interest rate environment, (iii) higher interest income from investment securities primarily attributable to higher average balances, and (iv) 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:

Three Months Ended June 30, · Six Months Ended June 30,
2024 vs. 2023 · 2024 vs. 2023
	Increase (Decrease) Due to Change in(1):			Increase (Decrease) Due to Change in(1):
($ in thousands)	Volume	Rate	Total Variance	Volume	Rate	Total Variance
Interest income:
Interest-bearing deposits with banks	$8,053	$2,815	$10,868	$28,703	$10,951	$39,654
Investment securities	15,266	1,717	16,983	17,837	3,609	21,446
Loans	162,115	14,633	176,748	387,540	50,307	437,847
Total interest income	185,434	19,165	204,599	434,080	64,867	498,947
Interest expense:
Interest-bearing deposits	116,530	8,756	125,286	238,033	25,588	263,621
Debt	(30,481)	(11,664)	(42,145)	(45,882)	(6,817)	(52,699)
Residual interests classified as debt	—	—	—	—	(141)	(141)
Total interest expense	86,049	(2,908)	83,141	192,151	18,630	210,781
Net interest income	$99,385	$22,073	$121,458	$241,929	$46,237	$288,166

(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.

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