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. The table also 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.

Average Balances and Net Interest Earnings Analysis

(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.

(2)Average balances were calculated on daily carrying balances.

(3)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.

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

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

For the three months ended March 31, 2025 compared to the three months ended March 31, 2024, net interest income increased by $96.0 million, or 24%, and net interest margin increased by 10 bps. Average interest-earning assets increased by 23% and average yields decreased by 55 bps, while average interest-bearing liabilities increased by 25% and the average cost of interest-bearing liabilities decreased by 82 bps.

The increases in net interest income were primarily driven by (i) higher interest income from personal loans and student loans of $89.6 million, which was primarily a function of higher average balances and origination volume, as well as longer loan holding periods, (ii) higher interest income from investment securities of $16.1 million primarily attributable to higher average balances, and (iii) lower interest expense on warehouse facilities and securitizations of $11.5 million primarily attributable to lower rates, which is reflective of our continued funding mix shift towards deposit funding.

These items were partially offset by (i) higher interest expense on deposits of $13.9 million primarily attributable to higher average balances, and (ii) lower interest income from interest-bearing deposits with banks of $11.3 million, primarily attributed to lower rates.