Interest Income and Interest Expense (Tables)

3 Months Ended

Aug. 31, 2026

Banking and Thrift, Interest [Abstract]

The following table displays the components of interest income, by interest-earning asset type, and interest expense, by debt product type, presented in our consolidated statements of operations.

Table 2.1: Interest Income and Interest Expense



(Dollars in thousands)	Q1 FY2027		Q1 FY2026
Interest income:






Loans(1)	$	453,159	$	445,572
Cash and investment securities	1,297		1,874
Total interest income	454,456		447,446

Interest expense:(2)(3)
Short-term borrowings	45,312		50,326





Long-term debt	299,704		291,192


Subordinated debt	33,470		34,951
Total interest expense	378,486		376,469

Net interest income	$	75,970	$	70,977

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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 premiums, 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.