SoFi Technologies Inc
For the period ended Dec 31, 2024. Filed Feb 24, 2025.
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FY2024 · Filed Feb 24, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Net Interest Income
The tables below present 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
| Year Ended December 31, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 · 2023 · 2022 | ||||||||||||||
| ($ in thousands) · Average Balances(1) · Interest Income/Expense · Average Yield/Rate · 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 | $2,814,098 | $133,686 | 4.75% | $2,172,013 | $91,312 | 4.20% | $1,122,364 | $10,841 | 0.97% | |||||
| Investment securities | 1,412,821 | 79,338 | 5.62 | 541,590 | 25,096 | 4.63 | 494,005 | 12,542 | 2.54 | |||||
| Loans | 25,360,067 | 2,594,793 | 10.23 | 18,733,812 | 1,934,659 | 10.33 | 9,200,023 | 749,071 | 8.14 | |||||
| Total interest-earning assets | 29,586,986 | 2,807,817 | 9.49 | 21,447,415 | 2,051,067 | 9.56 | 10,816,392 | 772,454 | 7.14 | |||||
| Total noninterest-earning assets | 3,305,102 | 3,055,580 | 2,812,054 | |||||||||||
| Total assets | $32,892,088 | $24,502,995 | $13,628,446 | |||||||||||
| Liabilities, Temporary Equity and Permanent Equity | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||
| Demand deposits | $2,167,328 | $45,117 | 2.08% | $2,214,794 | $51,673 | 2.33% | $1,336,006 | $21,814 | 1.63% | |||||
| Savings deposits | 18,385,550 | 782,205 | 4.25 | 8,481,895 | 359,444 | 4.24 | 1,403,750 | 31,045 | 2.21 | |||||
| Time deposits | 2,060,959 | 102,832 | 4.99 | 1,958,002 | 96,703 | 4.94 | 281,633 | 6,934 | 2.46 | |||||
| Total interest-bearing deposits | 22,613,837 | 930,154 | 4.11 | 12,654,691 | 507,820 | 4.01 | 3,021,389 | 59,793 | 1.98 | |||||
| Warehouse facilities | 1,555,603 | 97,781 | 6.29 | 3,142,096 | 192,987 | 6.14 | 2,378,935 | 71,717 | 3.01 | |||||
| Securitization debt | 188,855 | 7,197 | 3.81 | 751,869 | 36,853 | 4.90 | 593,824 | 22,507 | 3.79 | |||||
| Other debt(2) | 1,782,732 | 56,204 | 3.15 | 1,638,748 | 51,526 | 3.14 | 1,575,027 | 30,618 | 1.94 | |||||
| Total debt | 3,527,190 | 161,182 | 4.57 | 5,532,713 | 281,366 | 5.09 | 4,547,786 | 124,842 | 2.75 | |||||
| Residual interests classified as debt | 2,495 | — | — | 12,301 | 141 | 1.15 | 57,510 | 3,723 | 6.47 | |||||
| Total interest-bearing liabilities | 26,143,522 | 1,091,336 | 4.17 | 18,199,705 | 789,327 | 4.34 | 7,626,685 | 188,358 | 2.47 | |||||
| Total noninterest-bearing liabilities | 753,979 | 757,070 | 657,314 | |||||||||||
| Total liabilities | 26,897,501 | 18,956,775 | 8,283,999 | |||||||||||
| Total temporary equity | 123,221 | 320,374 | 320,374 | |||||||||||
| Total permanent equity | 5,871,366 | 5,225,846 | 5,024,073 | |||||||||||
| Total liabilities, temporary equity and permanent equity | $32,892,088 | $24,502,995 | $13,628,446 | |||||||||||
| Net interest income(3) | $1,716,481 | $1,261,740 | $584,096 | |||||||||||
| Net interest margin(4) | 5.80% | 5.88% | 5.40% | |||||||||||
(1)Average balances were calculated on daily carrying balances for the 2024 and 2023 periods, and on thirteen-month ending carrying balances for the 2022 period, as the daily analysis in the prior periods 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 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.
2024 vs. 2023. Net interest income increased by $454.7 million, or 36%, during the year ended December 31, 2024 compared to the year ended December 31, 2023, and net interest margin decreased by 8 basis points. Average interest-earning assets increased by 38% and average yields decreased by 7 basis points overall, while average interest-bearing liabilities increased by 44% and the average cost of interest-bearing liabilities decreased by 17 basis points.
The increases in net interest income were primarily driven by (i) higher interest income from personal loans and student loans of $602.1 million, which was primarily a function of increases in the average balance and origination volume, as well as longer loan holding periods, (ii) higher interest income from investment securities of $54.2 million primarily attributable to higher average balances, (iii) higher interest income from interest-bearing deposits with banks of $42.4 million, primarily attributed to higher average balances, and (iv) lower interest expense on warehouse facilities and securitizations of $124.9 million primarily attributable to lower average balances, which is reflective of our continued funding mix shift towards deposit funding. These items were partially offset by higher interest expense on deposits of $422.3 million primarily attributable to higher average balances.
2023 vs. 2022. Net interest income increased by $677.6 million, or 116%, during the year ended December 31, 2023 compared to the year ended December 31, 2022, and net interest margin increased by 48 basis points. The increases were primarily driven by higher interest income from (i) personal loans, which was primarily a function of increases in the average balance and origination volume, as well as longer loan holding periods for both personal and student loans, and (ii) interest-bearing deposits with banks, which reflected our strong liquidity position in a rising interest rate environment. Average interest-earning assets increased by 98%, and average yields increased by 242 basis points.
These increases were partially offset by higher interest expense on deposits attributable to a higher average balance and higher interest rates offered to our members, and higher interest expense on warehouse facilities attributable to a higher average balance and higher interest rates incurred on our facilities, all of which are reflective of the higher interest rate environment year over year.
Analysis of Changes in Net Interest Income
The following table presents year-over-year changes in net interest income and the extent to which the variances are attributable to changes in the volume of our interest-earning assets and interest-bearing liabilities or changes in the interest rates related to these assets and liabilities:
| 2024 vs. 2023 · 2023 vs. 2022 | ||||||
|---|---|---|---|---|---|---|
| Increase (Decrease) Due to Change in(1): | Increase (Decrease) Due to Change in(1): | |||||
| ($ in thousands) | Volume | Rate | Total Variance | Volume | Rate | Total Variance |
| Interest income: | ||||||
| Interest-bearing deposits with banks | $30,503 | $11,871 | $42,374 | $44,128 | $36,343 | $80,471 |
| Investment securities | 48,924 | 5,318 | 54,242 | 2,205 | 10,349 | 12,554 |
| Loans | 677,986 | (17,852) | 660,134 | 984,564 | 201,024 | 1,185,588 |
| Total interest income | $757,413 | $(663) | $756,750 | $1,030,897 | $247,716 | $1,278,613 |
| Interest expense: | ||||||
| Interest-bearing deposits | $425,495 | $(3,161) | $422,334 | $386,575 | $61,452 | $448,027 |
| Debt | (116,639) | (3,545) | (120,184) | 50,088 | 106,436 | 156,524 |
| Residual interests classified as debt | — | (141) | (141) | (519) | (3,063) | (3,582) |
| Total interest expense | $308,856 | $(6,847) | $302,009 | $436,144 | $164,825 | $600,969 |
| Net interest income | $448,557 | $6,184 | $454,741 | $594,753 | $82,891 | $677,644 |
(1)We calculate the change in interest income and interest expense separately for each item. Volume and rate changes have been allocated on a consistent basis using the respective percentage changes in average balances and average rates.
Loan Maturity Schedule
The following table presents the maturities of our loan portfolio, as well as the separate presentation of the total amount of loans in each loan category that are due after one year that have variable rates and fixed rates:
| As of December 31, 2024(1) | |||||
|---|---|---|---|---|---|
| ($ in thousands) | Within 1 year | After 1 year through 5 years | After 5 years through 15 years | After 15 years | Total |
| Loan Portfolio: | |||||
| Personal loans | $386,485 | $13,128,259 | $3,074,879 | $— | $16,589,623 |
| Student loans | 4,941 | 1,222,684 | 4,951,901 | 2,036,103 | 8,215,629 |
| Home loans | — | — | 10,963 | 138,899 | 149,862 |
| Secured loans | — | 360,940 | 443,860 | — | 804,800 |
| Credit card(2) | 328,472 | — | — | — | 328,472 |
| Commercial and consumer banking | 2,654 | 3,056 | 11,284 | 135,644 | 152,638 |
| Total loans | $722,552 | $14,714,939 | $8,492,887 | $2,310,646 | $26,241,024 |
| Loans with variable rates: | |||||
| Personal loans | $308 | $— | $— | $308 | |
| Student loans | 10,565 | 83,633 | 18,626 | 112,824 | |
| Commercial and consumer banking | 351 | 5,566 | 126,320 | 132,237 | |
| Total loans | $11,224 | $89,199 | $144,946 | $245,369 | |
| Loans with fixed rates: | |||||
| Personal loans | $13,127,951 | $3,074,879 | $— | $16,202,830 | |
| Student loans | 1,212,119 | 4,868,268 | 2,017,477 | 8,097,864 | |
| Home loans | — | 10,963 | 138,899 | 149,862 | |
| Secured loans | 360,940 | 443,860 | — | 804,800 | |
| Commercial and consumer banking | 2,705 | 5,718 | 9,324 | 17,747 | |
| Total loans | $14,703,715 | $8,403,688 | $2,165,700 | $25,273,103 | |
(1)Maturities presented are based upon the contractual terms of the loans. Amounts represent unpaid principal balance of loans outstanding at period end.
(2)Due to the revolving nature of credit cards, we report all of our credit card balances as due within one year.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.