CFC Quarterly Financial Performance
NON-GAAP RECONCILIATION -Net BaaS Loan Income Interest Margin
The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operational
performance and to enhance investors' overall understanding of such financial performance.
However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies
may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures
reported by other companies.
The following non-GAAP measure is presented to illustrate the impact of BaaS loan expense on net loan income and yield on CCBX loans.
Net BaaS loan income divided by average CCBX loans is a non-GAAP measure that includes the impact BaaS loan expense on net BaaS loan income and
the yield on CCBX loans. The most directly comparable GAAP measure is yield on CCBX loans.
The following non-GAAP measure is presented to illustrate the impact of BaaS loan expense on net interest income and net interest margin.
Net interest income net of BaaS loan expense is a non-GAAP measure that includes the impact BaaS loan expense on net interest income. The most
directly comparable GAAP measure is net interest income.
Net interest margin, net of BaaS loan expense is a non-GAAP measure that includes the impact of BaaS loan expense on net interest rate margin. The
most directly comparable GAAP measure is net interest margin.
Reconciliations of the GAAP and non-GAAP measures are presented below.
June 30,
2023
As of and for the Three Months Ended
March 31,
2023
June 30,
2022
(dollars in thousands; unaudited)
Net BaaS loan income divided by average CCBX loans:
CCBX loan yield (GAAP) (1)
Total average CCBX loans receivable
16.95 %
1,269,406
16.09 %
1,064,192 $
12.35%
Interest and earned fee income on CCBX loans (GAAP)
53,632
42,220
BaaS loan expense
(22,033)
(17,554)
691,294
21,281
(12,229)
Net BaaS loan income
$
31,599
$
24,666
$
Net BaaS loan income divided by average CCBX loans (1)
9.98 %
9.40 %
Net interest margin, net of BaaS loan expense:
CCBX interest margin
CCBX earning assets
Net interest income
(1)
Less: BaaS loan expense
Net interest income, net of BaaS
loan expense
Net interest margin,
net of BaaS loan expense
(1)
(1) Annualized for periods presented.
(22,033)
18,074 $
4.69 %
32,448
(17,554)
14,894 $
4.66 %
10.41 %
10.15 %
1,544,628
1,296,839
40,107
9,052
5.25%
8.46 %
969,606
20,457
(12,229)
8,228
3.40%
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