CFC Quarterly Financial Performance slide image

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% 32
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