CEO comments on the influence of the bank charter:
Operating and financial results are just starting.
Strong growth in SoFi Money members with industry-leading APY.
Growth in balances has accelerated significantly.
“It took three years to accumulate our first $1 billion of deposits and just three months to grow another $1.6 billion.“
High quality and stickiness of deposit as demonstrated by approximately 80% deposit from direct deposit.
Lower the cost of funding for loans and pass on the savings to SoFi's loans.
The difference in deposit cost of funding and warehouse cost of funding was approximately 100 basis points in Q2 alone and that difference will continue to grow with the rising rate environment.
The increase in deposit funding allows increase flexibility to capture net interest margin (NIM) and optimized returns given a critical advantage in this macro uncertainty.
“The power and the financial benefit of the bank is demonstrated clearly by our $25 million of positive GAAP net income in Q2 at a 13% margin. We also have $5.5 billion of book equity on our balance sheet, and approximately $7 billion in warehouse facilities that we can access to fund loans, over half of which is committed capital.”
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